Federal Member for Cowper Pat Conaghan has called out Anthony Albanese’s increasing desperation as he garners a deal with the Greens to pass the flawed National Reconstruction Fund Bill, which is set to hinder rather than help Australian manufacturers.
The Bill was created by the Labor Government to replace the Coalition’s Modern Manufacturing Initiative, under the guise of better supporting local manufacturing and increasing the number of manufacturers across the country.
However, the Bill fails to address multiple key issues currently facing the Australian manufacturing industry, and the recent deal with the Greens to get it through will harm any would-be manufacturer’s bottom line and ultimate competitiveness in the market.
Labor have failed to deliver the $275 reduction in power bills they promised at the last election, and instead we are seeing increases of over 50%. Fuel and Freight costs also remain at uncomfortable levels for the majority of Australian manufacturers, despite the reductions seen since they hit their peaks during COVID. Additionally, there are no current policies in play to address the significant workforce shortages across the country. The Greens deal will see two of these three key pressure points continue to soar. Without immediately available affordable and reliable energy Australian manufacturing is increasingly unviable.
Additionally, the resources and forestry industry are currently singled out for prohibition in this Fund, ignoring the responsibly sourced capabilities we have in these areas.
“The majority of manufacturers I speak with around the electorate have told me that rising power prices are significantly impacting their already slim margins, and they are now faced with a need to increase their prices, which negatively impacts their competitiveness against foreign imports,” Mr Conaghan said.
“Aussie manufacturers rely on cheap energy to make things onshore – but Labor is ignoring this and instead proffering an ideology to the detriment of the very group they are claiming to support. The continued demonisation of current coal and gas resources and broken promises to bring power prices down will force more Aussie manufacturing offshore.”
“The issues of sovereignty over our supply chains were laid bare during COVID, and we need to address these immediately. Of course, things can be evolved as capabilities and technologies change, but the immediate need must be catered for.”
Added to this are the real concerns over the accountability of the proposed $15 billion expenditure. There is extraordinary discretion for the government to install a Labor-picked Board to spend up to $15 billion of taxpayer funds on Labor-picked priorities, without an impartial watch dog. The removal of a merit-based competitive grants program for manufacturers to secure the funding is also questionable.
“There is a concerning lack of definitions and detail around both controlling Board and eligibility criteria in the newly proposed program. Labor immediately dismantled the Modern Manufacturing Initiative when they were elected, and now after a ten month delay since its removal we are seeing a replacement that is not fit for purpose.”
ENDS
