Richard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

The Textile, Clothing and Footwear Strategic Investment Program Amendment (Building Innovative Capability) Bill 2009 amends the Textile, Clothing and Footwear Strategic Investment Program Act 1999 to allow for a new Clothing and Household Textile (Building Innovative Capability) Scheme, which replaces the coalition’s TCF Post-2005 Strategic Investment Program for the 2010-11 to 2014-15 years. The new scheme will continue to provide grants to clothing and household textile designers and manufacturers in Australia to invest in innovation, but in various respects will be more restricted.

In November 2003 the then coalition government announced a long-term assistance package of $747 million for Australia’s textile, clothing and footwear industry. An important component was the extension of the TCF strategic investment program through to 2015. The post-2005 SIP scheme provided up to $575 million over 10 years. The object of the scheme was to foster the development of a sustainable and competitive TCF manufacturing and designing industry in Australia. The scheme was capped at $487.5 million for the first five years and $87.5 million for the last five.

The bill replaces the coalition’s post-2005 SIP scheme for the 2010-11 to 2014-15 years. While slightly more funding has been allocated, there are some concerns within the industry that the bill is unduly restrictive and uncertain. Particular issues include: exclusion of capital expenditure; the reduction in the grant for research and innovation, from 80 per cent to 50 per cent; concern that eligible entities do not include entities undertaking advanced textile related processes—for example, specialised coating and quilting—but could include major retailers; and concern that the eligible activities will not include those involved in the production of specialised textiles. The bill itself does not establish the details of the scheme; it provides authority, when enacted, for the scheme to be formulated.

I note that the coalition has proposed some amendments and I am very pleased that the government has acceded to them. I give notice that I will move those amendments when we move to the committee stage. We thank the government for its cooperation on that and, in that context, we have pleasure in supporting the bill.

Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary for Social Inclusion and the Voluntary Sector) Share this | Link to this | Hansard source

Thank you, Senator Colbeck. This is very important legislation, as you say. It has been led by Senator Carr. It sets the framework for the Clothing and Household Textile (Building Innovation Capability) Scheme, which is a key component of the Australian government’s textile, clothing and footwear innovation package, which is a project and a strategy close to Senator Carr’s heart. The BIC scheme will support and encourage innovation, and we do need to make Australian clothing and household textile manufacturers and designers internationally competitive. We are a government that is concerned to invest in manufacturing for the future. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.