Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister advise the Senate on the recent performance of Australian industry, with particular reference to the steel industry? To what extent does the government’s stimulus strategy underpin that performance? Is the minister aware of any industry feedback on the strategy, and in particular—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Marshall, repeat the last part of that question. Interjections from both sides made it very difficult to hear the question. People are entitled to hear the question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Is the minister aware of any industry feedback on the strategy, and in particular on the impact the government’s social housing and Building the Education Revolution initiatives are having on demand for Australian steel? What is the scale of the strategy and what proportion is being devoted to infrastructure? And can the minister tell us what long-term benefits the Australian people can expect from this investment?

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

I thank Senator Marshall for that question.

Alan Ferguson (SA, Deputy-President) Share this | Link to this | Hansard source

Tell us about your latest trip to Cuba!

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

If you are complaining, Senator Ferguson, you should have thought of that before you brought in those standing orders. Over the last few weeks we have seen some encouraging signs from Australian industry, including the steel industry.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Senator Conroy interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy! One of yours is trying to answer the question.

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

Manufacturing is growing again, and demand for steel has risen each month since May. These are things that have not happened by accident. They have happened as a result of the government’s stimulus strategy. It is a strategy that those opposite have opposed right down the line. They have happened because this government is prepared to fight for Australian industry and for Australian jobs. They have happened because we are ready to work with industry to generate new investment and employment opportunities. A major employer, OneSteel, has said:

We remain encouraged by … Government stimulus initiatives to invest in infrastructure and boost residential and non residential building activity … we are expecting to benefit from the Government’s Building Education Revolution stimulus from late 2009 and from larger infrastructure projects as they ramp up from around mid 2010.

Industry clearly appreciates why the stimulus strategy is needed and the difference that it is making, even if those opposite have failed to do so. The government has invested some $77 billion in shielding Australia from the worst effects of the global recession, and 70 per cent of that money is going into infrastructure. It is being used to support jobs and business activity today which will create enduring assets that will go on delivering benefits for Australian industry, for Australian communities and for Australian workers for years to come. This is the investment in Australia’s future that we need and it is already paying dividends.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I thank the minister for that very comprehensive answer and I ask a supplementary question. Can the minister inform the Senate how the government’s stimulus strategy and broader economic policies have shaped international perceptions of Australia as an investment destination? What significant new projects are in train and what opportunities do they create for Australian industry? What steps is the government taking to ensure that local firms have the chance to compete for major project work? What is the role of organisations like the Industry Capability Network and the government’s recently announced Australian industry participation package in maximising opportunities for domestic industry?

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

Senator Marshall, Australia’s strong leadership and sound economic management through this period of global economic crisis has been recognised internationally and is being rewarded with new investment. The Gorgon liquefied natural gas project is just one example. The project will ultimately use some $33 billion worth of goods and services. Gorgon has already awarded more than $2 billion worth of contracts, the majority of which have gone to Australian companies. The Gorgon joint venture developed an Australian industry participation policy in the early stages of the project and is actively ensuring that local firms have every opportunity to get involved. It is working with the Industry Capability Network to identify Australian suppliers for this project. This is a great example of what the government is trying to achieve through its new $19.1 million Australian industry participation package. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Again I thank the minister for his answer. Can the minister explain the background to the government’s decision to establish an industry innovation council and appoint a supplier advocate for the steel industry? How do these initiatives serve the government’s stated objective of giving Australian firms in steel and other industries the best possible chance to compete for work, both in Australia and overseas? To what extent will the innovation council and the supplier advocate be engaged in building industry capability?

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

The government cannot compel project proponents to use local products or local companies to bid for work. For example, Australian companies are showing a keen interest in bidding for contracts on the Gorgon project, but no local firm put in a bid to supply the larger, more complex steel modules, which is why the work has gone overseas. That is why the government is investing heavily to boost Australian industry capabilities and to match those capabilities with opportunities. That is why we have established a Steel Industry Innovation Council and are appointing a steel supplier advocate. Our aim is to ensure that Australian steelmakers have the knowledge, the capacity and the opportunity to bid for work, especially on major projects. We cannot guarantee—(Time expired)