Returned Industry Minister, Kim Carr, has declared his hand, from the AFR:
“We know that manufacturing is under enormous pressure but there are signs of improvement. With the Australian dollar coming off from its very high peaks, it is not the time to go easy on the innovation transformation that’s required to keep us competitive. If anything, it is now time to accelerate our efforts to modernise our plants, to modernise our workplaces, to modernise our management systems and to increase our R&D, increase our collaborations with universities and to attract new investment. I think we have to recognise Australia is a high-cost country. We’ve got a high standard of living, there are a whole lot of factors that given our location mean that we are going to be more expensive in some areas. There is clearly a place for all industry but it is a question of attracting new investment to ensure they’re able to deploy the new technologies to keep us competitive”.
It sounds good but I’ve no idea what that means for policy. On labour costs at least there is ackowledgement of the need for sacrifice:
“I don’t think you should ask the workforce to bear all the burdens,” Senator Carr said. He said it was critical Australia developed highly skilled manufacturing – and that government gave more assistance to agriculture and oil and gas than to manufacturing.
“We don’t live in an ideal world and we don’t live in a perfect market,” Senator Carr said. “That doesn’t mean we have to constantly engage in a race to the bottom but it does mean that we have to work extremely hard if anything in that race to the top.”
Carr also said there were ongoing discussions with Holden, Toyota and Comalco.
What does it all mean? Industry support, I expect. And yes, I continue to support it for car manufacturers. Car industries are a global subsidy bidding war. I don’t approve of it. But that’s the reality. No point tying yourself up in knots over it. You want to make cars, you gotta pay.
The last thing this nation needs right now – with a stuttering rebalancing project and a mining investment cliff looming – is the loss of Holden and the car industry. The US bailed its car industry during the GFC. As our delayed moment beckons, we should follow.
