Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

It is unfortunate that there have been a number of business closures in recent times which have lead to job losses in the Australian manufacturing sector. These job losses are very much regretted. In an open economy such as ours, we are not immune to the pressures of global competition. In such an environment, business continues to restructure and to rationalise to remain competitive.

The Australian manufacturing sector, I remind the senator opposite, employs 1.1 million Australians. Over the past 12 months some 22,300 new jobs have been created in the manufacturing sector. The value of the manufacturing sector in 2007 was at a record level of $103 billion in real terms, representing some 10.05 per cent of GDP. Manufacturing exports remain strong and have increased by an average annual rate of five per cent over recent years and, in 2007, increased by 7.2 per cent to a record of $87.1 billion.

The government has in place a range of measures to assist affected workers find alternative employment. For example, Job Search Support provides jobseekers with practical job search assistance, including advice on job search techniques and placing their resume on Job Search, one of Australia’s largest job networks. It is also about creating opportunities for new business to open, and this has occurred in such areas as food and beverage, renewable energy and IT. The Australian manufacturing industry has a positive future.

I recognise that Australian manufacturing is facing increasing costs as a result of higher interest rates and a strong dollar, but the government is working to turn that around. This is a government that is focused on managing the economy to ensure that the operating environment is conducive to the long-term viability of the Australian manufacturing sector. Lowering inflation is critical to that objective.

We saw in the previous government’s term essentially a policy of ‘set and forget’ being the order of the day. This government, however, has taken an entirely different view. We have established a series of reviews which will be instrumental in guiding innovation and manufacturing industry policy. In this regard, the government is optimistic that the future of manufacturing sectors such as the automotive industry will be bright if the right investment decisions are made now. I look forward to hearing something positive from the opposition with regard to the importance of the Australian automotive industry.