Louise Pratt (WA, 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 update the Senate on the current state of play in Australian manufacturing? What is the significance of today’s national manufacturing roundtable?

Opposition Senators:

Opposition senators interjecting—

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

Order! I have just made a comment about interjections and, immediately a person is on their feet asking questions, we have more interjections.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

What action has the government taken to support Australian manufacturing over the past two years? In particular, what initiatives have been put in place to promote innovation and to support enterprise improvement? What measures have been taken to encourage investment in specific industries? Has the government’s economic stimulus strategy assisted manufacturing during the global recession?

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

I thank Senator Pratt for her question. A manufacturing alliance has been forged by the Australian Manufacturing Workers Union and the Australian Workers Union, which are hosting a national manufacturing roundtable in parliament today. The roundtable brings together workers, employers, researchers and the government. Conditions have been tough for Australia’s manufacturers in recent times, but the Commonwealth has been working hard with industry to see it through this difficult period and to position it for future growth. Our Powering Ideas innovation agenda is backed by $3.1 billion in new investment over four years, and that provides the context. It is all about generating new ideas. We need to revitalise today’s industries and build tomorrow’s. Enterprise Connect is providing innovation and business improvement services to individual firms around the country.

The $6.2 billion New Car Plan for a Greener Future has attracted millions of dollars in new investment and the production of two models in Australia. Our retargeted TCF innovation package is encouraging the industry to focus on high-value, high-tech production. Industry innovation councils are driving the transformation and renewal in strategic sectors. Our Australian industry participation package is increasing the capacity of local firms to compete for major projects and procurements. Throughout the global crisis, our economic stimulus strategy has sustained demand for a whole range of manufactured goods. It has offered up direct support to manufacturers in the form of tax breaks on new investments.

No-one should doubt how serious this government is about the future of Australian manufacturing and the wellbeing of the families and the communities who depend upon it. It is a pity we did not get more support from the opposition on these issues. (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister further inform the Senate how the government sees the immediate outlook for Australian manufacturing? Is there evidence that the sector has turned the corner after enduring the stresses of the global recession? What is the industry’s own assessment of where it is heading? Is it expanding? If so, when did this turnaround occur? Can the minister provide the latest data on manufacturing employment? How does this compare with the pre-recession figures? Is there evidence that overall employment levels are falling?

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

Many companies are still under pressure, but there are encouraging signs of a revival in the sector. The Australian Industry Group’s Performance of Manufacturing Index for August showed that the industry was expanding again after some 14 months of contraction, and the expansion has continued in September. Aggregate manufacturing employment was at the same level in the August quarter this year as it was in the November quarter of 2008. Job numbers actually rose in the August quarter compared with the preceding three months. That is not to deny the hardship that has been experienced by workers who have been retrenched, but it tells us that many manufacturers are still hiring. That is good news for the industry and it is good news for Australia, which relies on our manufacturing to generate jobs, exports, innovation and demand for goods and services across the economy. (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister give the Senate an outline of the longer term prospects for Australian manufacturing, especially as the rest of the world bounces back from recession? What factors will influence Australia’s success in winning manufacturing sales and investment during the recovery phase? Can the minister explain what new measures the government has planned to ensure that the momentum of renewal and transformation in Australian manufacturing is maintained in the year ahead?

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

Australia has come through the global recession in better shape than almost any other advanced economy. We need to seize the advantage. Our skills, our infrastructure and, above all, our capacity to innovate will ultimately determine just how competitive this country is. That is why the government will continue to develop the nation’s innovation capacity in the year ahead. The new R&D tax credit will provide simpler and more generous incentives for business, research and development. Commercialisation Australia will take a radically new approach to getting local ideas into global markets. There are still many challenges ahead of us, but I am confident that Australian manufacturing can answer those challenges and make an even greater contribution to our prosperity. I am looking forward to hearing something from Senator Abetz on these issues, because all I have heard is hostility to manufacturing and hostility to Australian jobs. (Time expired)