House debates

Tuesday, 25 May 2021

Matters of Public Importance

Manufacturing Industry

3:16 pm

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

I'm going to move straight to the matter of public important, as there are no papers today. I have received a letter from the honourable member for Chifley proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The Government's failure to prioritise rebuilding jobs and wages in Australian manufacturing.

I call upon those members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

Photo of Ed HusicEd Husic (Chifley, Australian Labor Party, Shadow Minister for Industry and Innovation) Share this | | Hansard source

Remember back in January last year when, if you were on the eastern seaboard, you couldn't leave your house? Three states were affected by a thick blanket of smoke. Fires ripped through roughly 20 million hectares of land. Three thousand homes were destroyed. There was international attention on the terrible impact. The country turned to its Prime Minister, who had been out of the country. In a radio interview, when the Prime Minister was asked for help—'Give us assistance'—what did he say? 'I don't hold a hose, mate.' When people needed their leaders, when they needed their Prime Minister, we just got abrogation and giving up: 'I don't hold a hose, mate. It's not my responsibility.' You might think, 'That was just a throwaway line; maybe don't be too hard on him,' but the reality is that this reflects, at its core, the philosophy of that side.

Those opposite have worked for decades to undermine the value and role of government so that, when we get to a point where we need it, they say, 'It's not our job.' They have degraded the role of government for years, for decades, saying it's all too hard to do anything. Mind you, they don't mind leaching off government. They don't mind getting into government. They don't mind getting into the plum jobs and appointing all their mates to the plum jobs—13 this year, by the way. They put them in there and they think there's a role for government there, but government should never be there. It's always about getting them out of the way.

We built a national university. We built the CSIRO. We built Snowy Hydro. Mind you, it was Labor pushing a lot of that. That was government in action, creating jobs. We also had car makers. Remember that thing—car manufacturing? That's what we used to have. That's what we put in place. But those opposite are never there for industry. They're never there to back manufacturing. Remember—and a lot of us do—at that dispatch box you had a federal Liberal Treasurer goading auto manufacturers out of the country, devastating different parts of the nation, including the deputy leader's own electorate, and I know there were a lot of other electorates that lost auto manufacturing workers and lost those small businesses that depended on the sector. They were all gone, goaded out by those opposite.

Remember that it's their philosophy that governments shouldn't do anything. What did Tony Abbott do when they first came in? He cut our manufacturing support. What we'd had in as funds the Liberals cut—first thing. So is it any surprise that when we got to a pandemic and everyone turned to get stuff that they think could be manufactured here there was nothing? You couldn't get what you needed. It was then that we realised that we were dependent wholly and solely on global supply chains and that we didn't have local manufacturing. We didn't have the ability to do that locally. And what did we see after they'd pushed out the auto manufacturers and after we saw them rip money out of support for manufacturing? Ninety thousand manufacturing jobs before the pandemic and 50,000 during the pandemic. Even their department of industry, people would not be aware—50,000 manufacturing jobs gone in the last 12 months. That is their track record.

After ripping out all that funding, what happened? There was a resurrection. They suddenly decided that they'd bring back manufacturing, and they're now all big champions of this modern manufacturing initiative that is pretty much a restoration of what we had in the first place. But, as is always the way, it's about the announcement, and then you look at the delivery. They announced this $1.5 billion fund, and their then industry minister said, 'We'll get round to spending three per cent in this financial year. They announced it in the last budget—not this one but the one back in October—and said three per cent would be spent in this financial year. The sum total of their commitment to manufacturing was that they would do that.

You would think that with that big fund they would have an industry minister who would basically throw themselves into making sure that with that money they'd work hard to get those manufacturing jobs back, they'd work hard to make sure those were full-time jobs, they'd work hard to make sure that wages grew and they'd fully commit and dedicate themselves to this. What happened? The minister who announced the program has gone. That's no surprise, because you should be aware that the shelf life of an industry minister in a coalition government is 330 days on average. That's 330 days to leave a mark. Less than a year and they're gone. When you go through all their industry ministers, they don't hang around for too long. Bearing in mind that track record, who did they appoint to be the industry minister? Christian Porter. More place card than minister is this bloke. He will not be around at all. His day job is not to be industry minister. His day job is to do the preparation for a legal defence. His mind is not in it. Is it any surprise he's not here? Who's representing the industry minister here today? It will be interesting to see, because he won't be here himself. The industry minister is a great barrister. He's across his brief. He will be able to rattle off all those facts, but his heart isn't in it, just like the rest of those opposite. Their hearts are not in it for manufacturing. It's so bad that even their own side are commenting on it. On 16 May in the Sydney Morning Herald:

'It's not optional for a minister': Growing disquiet among Liberal MPs over Christian Porter's media silence.

His own side are saying that they couldn't see him. They couldn't find him anywhere. Here we are trying to rebuild manufacturing, to create jobs that have been lost and to support people's wages, and he's not around. In fact, one MP said to the papers:

Backbenchers can get away with not doing media but it’s not optional for a minister — they have to do media.

That was on 16 May. He hadn't done a press conference, and guess what happened. That article appeared on 16 May, and when did Christian Porter do his media conference? On 21 May. It's pure coincidence. The minister did his press conference—

Photo of Llew O'BrienLlew O'Brien (Wide Bay, National Party) Share this | | Hansard source

Order! The member for Chifley will use the member's correct title.

Photo of Ed HusicEd Husic (Chifley, Australian Labor Party, Shadow Minister for Industry and Innovation) Share this | | Hansard source

Sure. The minister did his press conference, the first one, on 21 May, but you won't see much else.

He'll do his set plays here. He won't even be here for an MPI. He's collecting the pay and not doing the job. Do you know what will get me, and what will be really offensive? He's not around doing his job as industry minister, he's not doing his press conferences, he's not visiting out in the industry and he's not championing new jobs; he's doing his legal defence, I'll be interested to see. He could win or he could lose the defamation case. We'll see. But you know what will be really offensive? If this guy wins his defamation case and then pockets the money. After not doing the job as an industry minister, he pockets the money. And maybe then he will pocket the money for defamation wins. He may or may not get those. But it's just wrong. His heart isn't in it. He's not doing the job. He's not there defending people. He's there merely because they had to find a convenient place to put an embattled minister. It is not right at all—taking the money for the day job and not being there for people when they need them most. It is utterly offensive.

The other thing is, too, he challenges us about, for example, creating a start-up year, and says, 'Well, we've done it in the past.' The problem is that the problems that have been present under the coalition in times past have re-emerged today. Isn't it surprising: here we are, a Labor party, championing entrepreneurism and being bagged out by the Liberal Party! This is how far they've fallen. They're now big believers in debt and deficit, and they no longer believe in entrepreneurialism. They go out and they bag entrepreneurism. It is wrong. We don't need a part-time industry minister whose biggest goal for the job is to get out of the job.

What we need is someone who truly believes in manufacturing, someone who will truly champion the re-creation of those jobs. New firms, new jobs, new growth—that's what we need. We don't need a minister who has checked out and is not prepared to champion manufacturing jobs in this country. From our point of view, the only time he'll be around a manufacturing worker is to use them as a prop. They're not props. They're people who we should be supporting, and we should be ensuring that they have good jobs.

3:26 pm

Photo of Keith PittKeith Pitt (Hinkler, National Party, Minister for Resources, Water and Northern Australia) Share this | | Hansard source

I say to the member for Chifley: there's a lot talk about who's not here. I'm here, Huckleberry! No problems at all. I'm very pleased to be here talking about manufacturing. As someone who actually worked in manufacturing, did a trade in manufacturing—

Mr Husic interjecting

Photo of Llew O'BrienLlew O'Brien (Wide Bay, National Party) Share this | | Hansard source

The minister will pause. The member for Chifley used the wrong term numerous times before I called him up. I gave you that opportunity. I think I'm pretty fair. The member for Hinkler.

Photo of Keith PittKeith Pitt (Hinkler, National Party, Minister for Resources, Water and Northern Australia) Share this | | Hansard source

Thank you, Mr Deputy Speaker. It's a term of endearment! I'm sure the member for Chifley is not offended. We've had 10 minutes from those opposite, and what have we heard? Not a single alternative policy—a lot of complaints about how much media a particular minister might do, but not a single alternative policy from those who purport to be the next alternative government.

These things are pretty straightforward. Let's stick with the facts, and the facts are very straightforward indeed. Consumer sentiment is at the highest level it's been in 11 years for business conditions. Mr Deputy Speaker, as someone who comes from small business, from farming and a range of other employment, I can tell you that the fundamentals remain the same. That is, for manufacturing to be successful they need to have affordable and reliable electricity and affordable and reliable gas. They need red and green tape out of their way and they need a skilled workforce that is out there and available for their use.

I was in the west last week, over in Karratha, where they have two very large LNG plants. We visited both of those. One of the individuals in Karratha made a comment which I have picked up. It's a great term. It's a great way to think about these skills needs for manufacturing. It is: we have to grow our own timber. For every Australian kid out there looking for an opportunity, your time is now. We have put significant money on the table and there are over 300,000 apprentice and trainee opportunities. There is a 50 per cent wage subsidy, which has been warmly welcomed by industry. If we want to be successful in the future, the available workforce is the Australian workforce, and we need to grow our own timber. It's our kids that are looking for those chances, and it's this side of House that wants to ensure those opportunities are provided for them.

In Karratha one of the challenges is available people. They're looking to expand and are looking for new opportunities. We were at the Pluto LNG facility. It's set, ready for a new train once it gets more gas. That means more construction work. That means more people, fly-in fly-out and residential. But it also means more opportunities for shuts. They need literally hundreds of individuals on a shut. They've had to delay some of their maintenance due to COVID. That means we now have a shortfall in some of these areas which needs to be addressed.

To come back to the fundamentals: manufacturing remains Australia's sixth-largest industry, currently employing 902,000 people, nearly a million. That is up 54,900 since the COVID-induced low, and that indicates that nearly all of those losses have been recovered. I think that's a good thing. I think that is a positive for our country, a positive for manufacturing, a positive for opportunity. You only have to look at confidence in the sector. There was recently an announcement by Santos up in Darwin that they will extend the life of Darwin LNG and they will invest over A$5 billion into the Barossa oil and gas field to see that those opportunities continue for at least another two decades.

Those opposite have got plenty to say about the Minister for Industry, Science and Technology. They've got plenty to say about media opportunities. We don't hear alternative policies. But what we do hear, from industry, is confidence, and that confidence is resulting in investment. That investment is important so that we have a pipeline into the future, not only in the resources sector, in terms of my portfolio, but right across the Australian economy. One of the things that we are doing is implementing strategic basin plans for gas. The Beetaloo was our first announcement. We've committed over $200 million to the Beetaloo. That is around roads infrastructure, for example. It is remote work. It's hard, it's hot, it's difficult. But there are individuals out there now who are bringing forward their exploration plans, bringing forward drilling in those areas to firm up that resource, because, quite simply, business will do the rest. If the resource is firmed up, then business will do the rest. I think that is a wonderful opportunity for the north, particularly around Darwin. They can build into existing infrastructure and expand into the future. We think the Beetaloo has got a big part to play in terms of manufacturing in Australia's future. We want to see that work brought forward, and the expectation is that that work will come forward by at least two years. We're pushing very hard to make sure that happens, and we are committing the funds into the Beetaloo to ensure that that activity occurs in this dry season and the next.

Once again, what we hear from those opposite is a long litany of complaints, not a single positive policy about what they would do as the alternative government, about what they would do to ensure further manufacturing. Right across the country, everywhere I go, I am talking to people who are looking to bring their manufacturing operations back on shore. We've seen a renaissance in the regions in terms of people who are shifting, who want to live in regional Australia. As I know you know, Mr Deputy Speaker, there is no better place to be than regional Australia. You can have your own house, a big yard and dogs and cats and horses and whatever you may want. But the main thing that you want in regional Australia is a job, and a lot of those jobs are driven through the resources sector in the regions and by agriculture. We want to make sure they're successful, so we're putting forward a plan to build agriculture to $100 billion. The resources sector has done a phenomenal job over the last 12 months. The Office of the Chief Economist is forecasting that the resources and energy exports from this country will break all records this financial year. In the midst of a worldwide pandemic, we have seen an increase in employment in the resources sector, an increase in exports, an increase in confidence and an increase in investment of some $35 billion, I'm advised. That is a significant investment right across the country. We want to ensure that that investment continues.

Mr Deputy Speaker, I am sure that, as a local member, you're not surprised that I want to identify some of those success stories in my own patch. We've got Superior Pak at Bundaberg. They've gone on to be a manufacturing powerhouse. They are Australia's leading manufacturer of world-class waste collection and compaction equipment. If you see a rubbish truck come past, it's most likely got a Superior Pak back on it, built at Bundaberg. Enmach—Jon Bowder and his team there—are renowned leaders in the design and manufacture of quality engineered poly moulded and steel fabricated products, another good operational business and manufacturer in my patch. You may not have heard of Knauf plasterboard, Mr Deputy Speaker, but they have plasterboard facilities in Australia. They built one in Bundaberg off the back of commitments made by the former Premier Campbell Newman to deliver gas infrastructure to the Bundaberg port, which was essential for this plant to go ahead. Plasterboard is being delivered right around Australia out of this facility in Bundaberg. They get on with their work quietly and they get it done. But would you believe that, when Queensland Labor won government in Queensland, they wanted to cancel this project? They didn't want to follow through on those commitments, the gas pipeline that was essential, and it turned into a full-blown barney to get that work done. As a result, this facility is there and it's delivering dozens of jobs for our local economy. It's a new string to the bow of the regional economy and it's a great part of manufacturing that's based at the Bundaberg port.

In the last couple of weeks we've seen announcements that Pacific Tug Group will finally be getting on with their project, for which the Commonwealth has committed $6 million through the BBRF. Once again, this project was held up by the Queensland Labor government that simply wouldn't give approvals to build what was necessary. This has been a long and arduous process, but I have to say I'm very pleased to see the announcement that this project is finally getting on with the job, delivering jobs in our local region and helping out manufacturing. It's an important part of what will happen in my local electorate. Mr Deputy Speaker, I thank you for giving me the opportunity to indulge in talking about my own patch. I don't get the opportunity very often as a minister, but I'm really pleased to talk about it.

We are committed to manufacturing. We are committed to ensuring that Australian kids get an opportunity through apprenticeships and traineeships. We are putting money on the table to make that happen. We've got over $1½ billion committed to expand that manufacturing activity. I know the minister for industry has announcements to make about round 1, with the first $50 million out of the Modern Manufacturing Strategy. We've also got $2 billion in R & D tax incentives and we will continue to deliver what's needed for this country to be a manufacturing powerhouse. There are alternatives out there. We are growing in the critical mineral space. We're looking to build additional sections inside our economy, and that will continue into the future. We've also got a significant investment in the digital economy and we know that that will continue. In the north, as the minister for northern Australia, we will connect the north to the world. We will provide the communications necessary for the north to be successful. I look forward to seeing that come to fruition and those jobs driven into the Australian economy.

3:36 pm

Photo of Graham PerrettGraham Perrett (Moreton, Australian Labor Party, Shadow Assistant Minister for Education) Share this | | Hansard source

I'm happy to talk on this MPI brought forward by the member of Chifley. I should say upfront that I'm a proud member of the Australian Manufacturing Workers' Union. Why am I part of the AMWU? Because I can imagine how great Australia could be if we made more things. Let's look at some facts, which were touched on by the member for Chifley, but avoided by the minister in his contribution. Since the coalition took office, there are 90,000 fewer jobs in Australian manufacturing. Let's just strip that down. We heard fine words flying from that side of the chamber. The minister took us on a tour of Hinkler and the surrounds, but there are 90,000 fewer jobs in Australian manufacturing since those geniuses opposite came to power. Let's look at some of the things they actually did—not their words, but what they did. They dared car manufacturers to leave, and the manufacturers did leave.

Government Member:

A government member interjecting

Photo of Graham PerrettGraham Perrett (Moreton, Australian Labor Party, Shadow Assistant Minister for Education) Share this | | Hansard source

Yes, a Victorian member interjecting about the car manufacturers leaving. It took a pandemic for them to actually wake up to how important Australian core capabilities are. As a member of the AMWU, as a member of the Labor Party that cares about jobs, we can imagine what Australia would be like without manufacturing. We can think big, like the big Australian; remember BHP thinking big in terms of being a bold and successful manufacturing sector? We believed that before the pandemic. We believed in producing, marketing and value-adding—value-adding to our food and fibre, value-adding to the things we dig out of the ground, value-adding before we send it overseas. But what do we have from those opposite, the 'I don't hold a hose' gang? They're happy to put out a brochure with a picture of a hose. They're happy to send that out to people and happy to get some consultants to take a photo of a hose, so they can test the market with a few people and then send out a brochure.

I want to be part of a party with a leader that will hold the hose, will go towards the flame and will say: 'We believe in manufacturing. We believe in an Australia that makes things.' Our leader believed that before the pandemic hit. We know from the minister's own figures that the department of industry's own estimates indicate 50,000 Australian manufacturing jobs were lost last year. What else is there? That extra little cherry on that rancid cake is the idea that there will be a cut to real wages for Australian manufacturing workers of $7,800. So they talk about the great brochures that they've got with hoses, but, when it actually comes to helping Australian manufacturers, they're missing.

I know that this Prime Minister is the king of the photo opportunity. He will do anything to get in to a photo op to look like he's doing something. I even remember him turning up at a manufacturing plant in 2019. Unfortunately, it was a manufacturing plant in the United States!

Photo of Ed HusicEd Husic (Chifley, Australian Labor Party, Shadow Minister for Industry and Innovation) Share this | | Hansard source

Whoops!

Photo of Graham PerrettGraham Perrett (Moreton, Australian Labor Party, Shadow Assistant Minister for Education) Share this | | Hansard source

Whoops! In fact, it was during an election campaign. A serving Australian Prime Minister stood beside a campaigning presidential candidate Donald Trump, where the former President told 1,500 Trump supporters that he was bringing manufacturing jobs back to the United States. Our Prime Minister standing next to a campaigning US presidential candidate! It was unbelievable in terms of diplomatic nous, especially when that guy turned out to be a loser and the democratic candidate is now President Biden! I don't think that's ever happened before. I assume that the advancer was sacked on the spot for putting an Australian Prime Minister in the middle of a US presidential campaign—unbelievable!

Let's look at what manufacturing really can deliver in terms of sovereign capability. We know that the Morrison government has spent $5.9 million more on consultant fees than the actual mRNA vaccine manufacture. Can you believe that?

Photo of Ed HusicEd Husic (Chifley, Australian Labor Party, Shadow Minister for Industry and Innovation) Share this | | Hansard source

With them I can!

Photo of Graham PerrettGraham Perrett (Moreton, Australian Labor Party, Shadow Assistant Minister for Education) Share this | | Hansard source

During a pandemic, they start up: 'We'll do some manufacturing. Let's get some brochures out. Let's get the consultants out there.' The Morrison government has used manufacturing to do what it's best at, to announce and re-announce and then announce again the same money! What else did they do? They picked a fight with our No. 1 trading partner where we actually can sell some products. This government is a disaster for manufacturing jobs.

3:41 pm

Photo of Melissa McIntoshMelissa McIntosh (Lindsay, Liberal Party) Share this | | Hansard source

I have to thank my neighbour the member for Chifley for giving me, yet again, another opportunity to talk about manufacturing, because he knows how much I back Aussie manufacturing in my electorate of Lindsay. I love promoting the incredible work that Australian manufacturers, including the 600 manufacturers in my community, are doing each and every day. I'm passionate about enabling our manufacturers to grow, expand, scale up and take on apprentices. They're all telling me how many apprentices they're now taking on, including Baker and Provan who took on two female apprentices, young women who are wanting to work in the manufacturing industry, and that is absolutely wonderful to see. Most importantly, they're creating more local jobs.

It's particularly important to be highlighting manufacturing because it is 'Aussie Made Week', and there is nothing I support more than getting behind Australian-made. While I'm delighted, I'm also a bit surprised that the Labor Party wanted to bring up their record on manufacturing, because those opposite haven't manufactured a decent policy in years. In fact, at the last election they manufactured $387 billion of new, increased taxes, burdening Australian families and businesses. They manufactured one energy policy in Queensland and another in inner-city Melbourne. They manufactured plenty, but Australia wasn't buying. They are still on the production line. The cogs are turning and the engines are whirring, but they're coming up empty yet again.

Unlike those opposite, the Morrison government is backing manufacturers to do what they do best, and I can tell you what they're achieving and what we're achieving. We have expanded tax relief for hardworking businesses. We're encouraging manufacturers to take on new apprentices with 50 per cent wage subsidies. We're removing unnecessary red tape. We're delivering a record infrastructure investment pipeline. We're opening new export markets, which will benefit businesses in Western Sydney, with the incoming Western Sydney international airport. We're encouraging them to buy the equipment they need to scale up by extending the instant asset write-off. The list goes on. We're locking in affordable and reliable energy that manufacturers can count on.

Aussie manufacturers in Western Sydney know that we have their back. I established the Advancing Manufacturing Taskforce to identify the challenges facing Aussie manufacturers and to explore the great opportunities that we can be front and centre on in Western Sydney. In the last year alone, the taskforce and I met with the Prime Minister and the minister for industry, and, last week, the minister for small business, because we care about creating an environment in Western Sydney where manufacturers can thrive. The Morrison government is supporting manufacturers like Visy in Penrith, which is really exciting to see, with the extension of the accelerated depreciation program. Whether you are Pandrol, SpanSet, Plustec, Grant Engineered, Custom Denning or another one of the 600 manufacturers in Lindsay, you know that the Morrison government wants you to succeed.

The opposition also want to talk about creating jobs in manufacturing, and this is an area that I am also passionate about. Manufacturing remains Australia's sixth-largest industry, currently employing 902,000 people. Since the COVID-induced low, over 54,000 manufacturing jobs have been recovered. The Australian Industry Group's Performance of Manufacturing Index is also increasing—in fact, all six manufacturing sectors expanded in April, as did all seven of the activity indicators. Across the economy, there are more Australians in work now than before the coronavirus pandemic, and April's job numbers showed the strength of Australia's economic recovery, with unemployment falling to 5.5 per cent, and that's over the seventh consecutive month.

In my electorate of Lindsay, as I said, there are 600 manufacturers, employing over 6,000 people, and I want to see this number grow. A key part of this is delivering affordable, reliable energy, so that our manufacturers can compete on the global stage. Our investments in energy, in gas and in fuel security will not only deliver energy that manufacturers and heavy industry can rely on but also create thousands and thousands of jobs across our country.

The Morrison government won't stand in the way of manufacturers. We're backing them. We're clearing the roadblocks to enable them to do what they do best, with tax relief, support to take on apprentices, incentives to invest more in their business, affordable and reliable energy and more opportunity to grow and create jobs. Our plan is working, and our local manufacturers— (Time expired)

3:47 pm

Photo of Libby CokerLibby Coker (Corangamite, Australian Labor Party) Share this | | Hansard source

I rise in support of this motion put by the member for Chifley and thank him for it, because manufacturing matters. Nowhere do we see a better example of the coalition's lack of support for manufacturing than in the demise of our automotive industry. Ford was synonymous with Geelong. Now the iconic building that once housed the massive production line and employed thousands of local workers is an empty shell. The coalition government hounded Ford from Australia and, with it, the manufacturing jobs and skills. One former worker described visiting the site as being like 'visiting a cemetery'. Across Ford's two sites, in Broadmeadows and Geelong, 1,800 jobs were lost and, with them, the skills and expertise that are vital to Australia's future prosperity. It was this government that dared the car manufacturers to leave. And guess what? They did. They pushed legions of blue-collar workers in my region out of secure work. Twelve months after the closure in 2017, it was estimated that one in five laid-off employees who wanted to continue working were jobless. We lost our most complex, high-tech manufacturing and the thousands of jobs that went with it.

We know it's not just my region that's been hard hit by this government's failure to support manufacturing in this country. The department of industry's own estimates indicate 50,000 Australian manufacturing jobs were lost just last year, and since the election of the coalition government in 2013 we have lost 90,000 jobs in the manufacturing sector. Why is it that the Morrison government only seems to care about manufacturing when it comes to a photo op and a hard hat?

If the pandemic taught us anything, it was the need for Australia to be independent—to be self-sustaining. We want to be a place where we make things. We need to build things here, and, to prove we have the building capacity, we need to have the manufacturing capacity. This is the way that we ensure we keep people in work. As it stands, the opportunity for us to become a world leader in manufacturing of renewable energy components is closing, swiftly. For example, we mine and produce every element needed to build a lithium battery yet we send them off to be manufactured overseas. What about waste and recycling? Instead of putting waste into landfill, we could be manufacturing products here to be used in roads, in pathways, in clothing, in componentry, just to name a few. And with greater investment in research and development, we could be helping our university sector in its ground-breaking work supporting startups and innovative product development. For example, in my electorate, Deakin University has supported and expanded the development of carbon-fibre technology and now it is being exported to the world. Research and development must be funded, but this government just continues to waiver on R&D, which is one reason why we see a woeful decline in the number of manufacturing jobs across Australia.

It is abundantly clear that only Labor is on the side of Australian manufacturers. Labor values the role manufacturing plays in our economy and recognises the need to develop and implement policies to foster its growth. That's why we've developed the plan for a future made in Australia. It includes our national rail manufacturing plan, which will boost local jobs and industry. We'll also invest in an Australian skills guarantee to give apprentices, trainees and cadets a foot in the door. We will do the work necessary to establish these facilities so we can produce mRNA vaccines here on shore.

Today, the former Ford site plays host to the Barwon Health's vaccine hub. It has the potential to vaccinate 10,000 people a week but, realistically, it may never reach this figure due to the inability of the Morrison government to manufacture mRNA vaccines in Australia. The Morrison government has failed to invest in manufacturing in Australia again. What we need is a government that has vision, a government that invests in manufacturing and has a plan that will ensure we make things here, lock in jobs growth in smart technologies and back in entrepreneurship. The Morrison government is failing to do so. It is time for a change of government.

3:52 pm

Photo of Garth HamiltonGarth Hamilton (Groom, Liberal National Party) Share this | | Hansard source

Listening to the MPI today read out by the member for Chifley, I thought it was a classic case of playing the man and not the ball. There was plenty of advice for the minister for industry offered up but very little in the way of actual plans to drive manufacturing. It is very easy to understand because Labor have abandoned the field when it comes to manufacturing and they did so a long time ago. But this government is bringing Australian manufacturing back. We're rebuilding jobs and we are investing in growth in this industry.

The Toowoomba region has been a manufacturing hub for quite some time. We take advantage of the opportunities around us there. We take advantage of the agricultural industry around us, and Defence. When we had mining we were providing the manufacturing to support that as well as a strong transport industry. We're doing that with the support of this government going from strength to strength. Our region is manufacturing exports worth more than $1 billion. That is an impressive number and it is largely driven by our specialisation in food manufacturing. We have a lot of wonderful feedlots in our area. I went out to Grassdale recently, looking out over 79,000 head of cattle. Processors like Oaky Beef are great employers for local people coming through. Manufacturing brings export dollars in and provides great jobs to local people. There are more than 6,000 people employed in the manufacturing sector, 7.5 per cent of our region's workforce, and that number is continuing to grow. In fact, we have an urgent need now to support our manufacturing industry with upward of 50 boilermakers needed. A recent news story said: 'Come to Toowoomba. We have work here. Our manufacturing is growing and thriving. we need more people to come to Toowoomba and keep us growing.'

This government is encouraging innovation through programs like the $1.3 billion Manufacturing Modernisation Fund, which has seen an incredible take up, particularly in my region. It is something I talk to a lot of businesses about on a regular basis. The Accelerating Commercialisation program is another fantastic program that was taken up in my region by a group called Obadare. They have used this grant to turn themselves into Australia's only API licensed drill rig producer. Toowoomba has now become a hub not just for design and construction but for the commercialisation of these drill rigs that previously were only built overseas.

Toowoomba now competes against international producers of this machinery because this government invests in manufacturing. Obadare are now continuing to grow. It was fantastic to take Minister Angus Taylor out there to see the work that's going on in the workshop out there, walking through a full workshop where work was happening all around, welding sparks flying here and there. The activity that is generated by our support of this manufacturing industry is there to see. The evidence is right there in front of us.

This creates new job opportunities—so much so that operations manager Stephen Lucht has called out for interested workers, with several positions to fill, and he continues to grow and pull people in. If we're failing to prioritise Australian manufacturing jobs, why are so many being created? Why are the opportunities there? I think the evidence stands in stark contrast to today's MPI.

On top of this, the government's tax relief program and instant asset write-off incentives are bringing positivity to our manufacturing sector. I went out earlier this year to Homestyle Bake. There is an incredible new bread line that they're installing in their factory, again supported by this government. A local Toowoomba business that now provides bread across Queensland has grown and continues to bring in new workers. This is exactly the sort of growth that we would expect to see from such as well-orchestrated plan as this government has put together to ensure our economic recovery.

I went out to see an organisation called N-Drip. They're an Israeli micro-irrigation company who are looking to expand their operation to Australia, with the Toowoomba region set to become the manufacturing hub. We went out to a cotton crop. We looked at the amazing difference that was made by the new technology they brought to the sector. We were surrounded by farmers from all across the region and from quite a way out west, coming out to see what this new technology can do. The opportunities that manufacturing in Toowoomba will bring will ensure that this product can be produced and can be distributed locally at a good cost.

I think the evidence in front of us shows this government is supporting manufacturing and the manufacturing industry is responding.

3:57 pm

Photo of Peter KhalilPeter Khalil (Wills, Australian Labor Party) Share this | | Hansard source

Are they serious? I'm astounded. The member for Lindsay, with her pathetic jokes about manufacturing, the member for Groom with his talking points and spin—since your mob took office way back eight years ago, when Tony Abbott was Prime Minister, do you know how many jobs have been lost in Australian manufacturing? Ninety thousand. That's a fact. So all the spin, obfuscation and distortion will not hide that fact.

More than that: as the member for Chifley pointed out, you dared manufacturing to leave this country, and they did. Last year, during COVID-19, at the height of the pandemic, your own department of industry also showed that 50,000 jobs were lost in Australian manufacturing. That is 50,000 just last year. And there's more. For Australian manufacturing workers the budget papers forecast a cut to real wages of $7,800. That's the record of this coalition government on jobs and manufacturing. You can't hide from that record. As the member for Chifley has pointed out correctly, it's a record of neglect.

You know why it's neglect? Because they really don't care. They don't care about local manufacturing. They don't care about manufacturing jobs. They don't care about manufacturing workers and their families. You know what they do care about? Themselves and their own jobs.

In my own electorate of Wills the impact has been severe. Hundreds of manufacturing workers lost their jobs in the north of my electorate when the Broadmeadows Ford factory closed in 2016 in the member for Calwell's electorate. This was after the coalition and the former Treasurer arrogantly goaded and encouraged the death of auto manufacturing in this country. We all saw it. Whatever spin you put out in this MPI, we all saw it. It's there for posterity, for history to see. Many of the workers lost their jobs after a career dedicated to the industry. They were forced into early retirement and they weren't easily able to retrain for something else after so many years in the industry. For many people it was their last job, and the factory closing meant that early retirement.

It also meant relying on government support when they never had to before. It meant financial uncertainty for them and their families. It meant the loss of technical skills, built up over decades, and know-how in our country. And it also meant the loss of small and medium-sized enterprises, many in my electorate of Wills, that supplied the auto industry with parts and different bits and pieces. All that was shut down and lost; those people and those skills were lost. We have a proud manufacturing history in my electorate. But now, all too often, I drive past old and disused factories—a block of apartments going up where the factory was—and it's a reminder of what has changed and of the jobs and skills that we have lost because of this government.

With COVID-19 impacting global supply chains, making things here in Australia is more than just a talking point. It has never been more critical, to our jobs and to our national interest. That includes manufacturing that can help us out during this pandemic, like local manufacturing of mRNA vaccines such as Pfizer and so on. The Minister for Industry, Science and Technology—I think it was the member for McPherson at the time—said in October 2020 that it would take nine to 12 months for us to be able to manufacture that kind of vaccine here in Australia. That was in October, eight months ago. What have they been doing? Have they been preparing the talking points for this MPI and the spin? Eight months of work on that hasn't yielded much of a result, not from what I've heard from the last few speeches.

This government doesn't make long-term plans. It has no vision. When it comes to investing in what our country needs, when it comes to local manufacture for things like COVID-19 vaccines, the Morrison government has spent $5.9 million more on consultant fees than on mRNA vaccine manufacture. That's where their priorities lie. Unlike this government, federal Labor has a vision. We care about manufacturing workers. We care about making things in this country. That's why we're going to actually invest in it and not just talk about it. A future Labor government will implement policies that will retrain and retool workers, provide vocational education, establish job creation programs and revive Australian manufacturing. (Time expired)

4:02 pm

Photo of Bert Van ManenBert Van Manen (Forde, Liberal Party) Share this | | Hansard source

It's with great interest that I've been listening to this debate. I like the member for Chifley. He's part of the class of 2010, so I'll give him a bit of credit for that. It was very interesting to listen to the contribution of the member for Wills. He spoke about the Labor Party having these policies and plans. Well, he didn't articulate one of those in his presentation, and the member for Chifley, in the 10 minutes he had for his remarks, didn't articulate a single plan or policy either.

Mr Khalil interjecting

Photo of Llew O'BrienLlew O'Brien (Wide Bay, National Party) Share this | | Hansard source

Member for Wills.

Photo of Bert Van ManenBert Van Manen (Forde, Liberal Party) Share this | | Hansard source

To paraphrase an oft-quoted phrase, 'The reports of my death are exaggerated,' I'm here to say that the reports of the death of manufacturing in this country are greatly exaggerated. Whenever I go around my electorate of Forde and talk to the manufacturing businesses in my electorate, I only hear stories of success and growth. Their biggest struggle at this point in time is actually getting staff, to grow their businesses further.

This government has a tremendous story to tell on manufacturing right across this country. What I find interesting is that those opposite, when they were in government, had no qualms about applying a hammer blow to manufacturing in this country by instituting a carbon tax. All they did was introduce a carbon tax and seek to make the cost of manufacturing higher and more difficult. It's no wonder that, under their tenure, manufacturers looked to leave this country.

Over the eight years that we've been in government, manufacturers have taken advantage of any number of the incentives that this government has put in place over that time, including the more recent incentives such as the JobTrainer Fund. Nearly 2½ thousand apprentices in Forde took advantage of those measures. We've seen 18½ thousand businesses in Forde write off the full value of eligible assets that they purchased, and an additional 5,900 businesses in Forde have been able to use to extended loss carry-back measures to support cash flow and confidence.

Importantly—and those opposite never reference it in their contributions because they wouldn't want to acknowledge it—the JobKeeper payment supported nearly 7½ thousand businesses and 27½ thousand employees across the electorate of Ford, helping them through the pandemic and keeping them connected to their workplace, setting the groundwork for the recovery we're now seeing today. In addition, the cash flow boost helped around 4,800 small to medium businesses, providing some $217 million in payments to help businesses across Ford. We've also provided support through the Modern Manufacturing Initiative, we've provided support through the R&D tax incentive and, importantly, we continue to provide support through JobTrainer. There are some 13½ thousand people employed in Ford in construction and manufacturing.

I'd like to just talk about some of the manufacturing businesses in my electorate of Ford, in the time left for my speech, and the support they have received from this government. Holmwood Highgate received over a million dollars in the Sovereign Industrial Capability Priority Grants funding round to buy a new laser cutter, to continue to build the high-quality manufactured bulk-liquid transport equipment that services the commercial, aviation and—now, importantly—defence industries, as they were successful in obtaining a $30 million deal with Rheinmetall in the defence materiel space.

There are other great manufacturing businesses across my electorate of Ford. There is Beenleigh rum distillery, who during the pandemic changed their business model to also produce hand sanitiser. Recently, two of their rums won gold awards on the international stage. It's the oldest operating rum distillery in Australia. There are businesses like Poppy's Chocolate; Lithium Battery Systems; and Teys Australia, the largest employer in my electorate, who provides quality meats not only to the Australian domestic market but also overseas. BlockTexx have recently moved to the electorate, and they do fabric and textile recycling. There's GCI; Holmwood Highgate, as I mentioned; Frosty Boy; ATP Science; and Struddys, who make sporting apparel, who very clearly said to the PM that, if it wasn't for JobKeeper, they wouldn't have survived. There's Trailers Down Under, SPI Plastics, A1 Rubber, Molectra and many, many more. These are the businesses that are delivering for Australians each and every day, and they're who our government support. (Time expired)

4:07 pm

Photo of Anika WellsAnika Wells (Lilley, Australian Labor Party) Share this | | Hansard source

It's Australian Made Week this week, which should be a time when we celebrate Australian made products and the Australian businesses that support them, produce them and give locals jobs here in our communities, like mine on the north side of Brisbane. But, instead, we are here in Australian Made Week to talk about the government's failure to prioritise rebuilding jobs and wages in the Australian manufacturing sector, and I am on my feet, ropeable about this.

Last week the Prime Minister came to Geebung in my electorate of Lilley and he did a photo-op with a hammer and a nail on a construction site. The hammer and the nail had nothing to do with the actual construction site, but there he was, banging away, talking about his HomeBuilder program and how good it was—how many local jobs it was going to produce, how ridgy-didge it was, how bona fide his commitment was to Aussie values and Aussie jobs. He was about one jingle off a cork hat. That was him promoting his commitment to Aussie jobs.

But it was all fake because, at the same time—at the exact same time—that the Prime Minister was doing that photo opportunity in Geebung, his Liberal mate the Lord Mayor of Brisbane, Adrian Schrinner, was announcing that he had taken the decision to give a contract worth millions of dollars to a Chinese company to produce buses for Brisbane City Council. That's not a new thing for Brisbane, because Brisbane buses have been made in Eagle Farm in my electorate of Lilley since 2013. Volgren do it, and they used to have 130 workers at Eagle Farm who made buses, and it was part of the pride and joy of north-side manufacturing—just like we used to make the electric trams, back in the day, on Melton Road in Northgate, before that got shut down; just like we used to make and service trains before Campbell Newman's state government, back in 2014, made the decision to outsource that to India.

Year after year, we have Liberals waltz in here and praise themselves for their commitment to Aussie jobs, while, actually, on the ground and in the streets, they are the first ones to sell the businesses in our communities out the door—sell them to China, sell them to India—and it happened again last week. I cannot believe that I've have had to listen to—what is it now?—60 minutes of self-praise by the government, while their Liberal mates are selling a contract worth millions of dollars to the Chinese to make buses that actually should be being made on the north side, in Eagle Farm, by Volgren workers, who take pride in their job. Sorry I'm so worked up, because I am so sick of hearing about the announcements without any delivery: announcement, announcement, announcement; reannouncment of the announcement; 'How good is the announcement'; 'So great to be here reannouncing the announcement'; absolutely no delivery; absolutely no follow-through; and jobs walking out the door to China and to India again and again and again.

When we talk about the manufacturing industry in Australia as a whole, we need to consider that we lost 50,000 jobs in manufacturing alone last year. That's more than 1,000 manufacturing jobs a week. Each week last year, 1,000 Australians lost their manufacturing job under this Liberal Morrison government. Those who clung onto those jobs, those who still have a job to call their own, this week learnt in the federal budget that they would receive a real cut to their wages next year, and not just a small cut—a $7,800 real cut to their wages. That is just part and parcel of this Liberal government's ongoing commitment to slashing trades and vocational education, the place where we build skills, the place where we train apprentices and the place where Australian kids can get a foot on the ground and carve out a dream for themselves—a career for themselves—in their communities.

We have lost 150,000 apprentices under this eight-year-old government. There are 150,000 fewer apprentices than there were back in 2013. That's because this Liberal government, which is eight years old, has cut $3 billion from vocational education and training. That's a pre-pandemic figure; we don't have the new figure yet. Imagine how much worse it is now.

If COVID has taught us anything, it's that we must put Australian jobs and Australian manufacturing first. We've got to do it. It's been eight long years of despair and disrepair in this industry, and it's got to stop. Using the power of government—why we are all here and why we all sweat blood to get to this place—we should be transforming our economy and we should be powering up manufacturing in our industrial neighbourhoods like in Virginia, like in Geebung and like on the north side of Brisbane.

An Albanese Labor government would deliver national reconstruction and would be fairly, squarely focused on good, secure jobs. We will establish a $15 billion fund to invest in local industry and put Australian jobs first. We will rebuild the manufacturing industry. We will develop sovereign industrial and research capability. It is time Australia had a federal government that is actually on their side and not on the side of the Liberal's mates.

4:12 pm

Photo of Damian DrumDamian Drum (Nicholls, National Party) Share this | | Hansard source

It is great to have the opportunity to talk about modern manufacturing and how Australia has bounced back well from the COVID induced recession that we had, but nobody in Australia would look around and say that we've got this thing covered. We are a nation that has built its wealth out of what we can grow and what we can dig out of the ground, and there are enormous opportunities in Australia for us to value-add to so many of our different products in a whole range of sectors. We can improve on that, and getting that process in manufacturing industries up and running is why the modern manufacturing program that is in place at the moment is calling for companies that have the opportunity to take their primary produce to a second and third level to do so. It's matching funding from $1 million up to $20 million. This is a billion-dollar fund that is going to inject billions of dollars into modern manufacturing.

There are a whole range of options we have here. This country produces 95 per cent of the world's fine wool, but we send 95 per cent of that to China in a raw state. Surely there's an opportunity for us to co-invest with industries that can actually value-add to all of that fine wool rather than simply buy back Italian suits and ridiculously high prices. That's just one example where I'd love to think that the federal government and the private sector in this country could partner up to co-invest in the production of so many fantastic products that we have, because we have an incredible capacity to develop and grow so many high-quality products.

I'm very, very proud of what happens in my patch in the Goulburn Valley in the seat of Nicholls. We have SPC. The Shepparton Preserving Company has been one of Australia's iconic businesses for close on 100 years. It has gone from being a co-op to being privately owned. It was run by Coca-Cola and they sold it and now there is another group that is doing amazing things in taking SPC to another level. We have the Campbell's Soups. That has been in the area for years. It has really diversified and is making thousands of tonnes of stock each and every year for all of those budding chefs that have actually learnt how to cook in the last 12 months. Unilever have a large plant at Tatura and there's Fonterra and all of the milk processes—Bega, ACM, Freedom Foods, Parmalat and Saputo. There is an enormous number of milk processors.

What we have to understand is that, when we support the processors, they will go out and spend money in the engineering sector. The amount of stainless steel that exists in the Goulburn Valley on the back of what we do with milk processing is quite phenomenal. So our engineering industries are tied implicitly to our agricultural sector and our agricultural sector is tied to our food processors. So it is important that we invest in them and support them with policy. This is where the Labor Party have got to be very, very careful, because this is all wrapped up in water policy also. If you have horrendously damaging water policy, you are going to put agriculture on the back foot. If you put agriculture on the back foot, you put food processing on the back foot and then you put engineering on the back foot. Representing these areas, you learn very quickly how it is all tied together.

The federal government's investment in the fruit industry in my area is helping some of these farms with netting programs. It is also helping them to take their packing and sorting processes to a world-class level. It's about making sure that every piece of fruit is photographed thousands and thousands of times to ensure that that piece of fruit finds its way to its optimum value, whether it is to be sold as a piece of fresh fruit, whether it needs to be processed and put into a jar or a can or whether it needs to be juiced or pulped. These are the decisions that can be made now with modern technology that can look at these pieces tens of thousands of times. This type of technology is available because we've got a federal government that is prepared to co-invest with our industries.

Photo of Llew O'BrienLlew O'Brien (Wide Bay, National Party) Share this | | Hansard source

The discussion has concluded.