The Albanese government made boosting manufacturing a key plank of its economic policy, pledging up to $15 billion to invest in local manufacturing projects through loans, equity and guarantees.
During the election campaign, Anthony Albanese lamented “a decade of sending manufacturing offshore”, which he argued left Australia exposed when COVID-19 hit:
The Morrison-Joyce Government have overseen the loss of 85,000 manufacturing jobs since they came to office. Australia ranks dead last on manufacturing self-sufficiency compared to other OECD countries. Unless we act, Australia will be in the bottom half of all countries when it comes to economic growth over the next decade.
Labor believes Australia can become a country that makes things again with national reconstruction focused on advanced manufacturing and creating local job opportunities for the next generation…
“I want to be the Prime Minister who helps Australia stand on our own two feet again. This is about sovereign capability”.
“Serious countries should make things. Serious countries can stand on their own two feet when it comes to manufacturing essentials.”
Yet, last week’s capitulation to the gas cartel will see manufacturing jobs destroyed at a record pace, according to the Australian Industry Group:
“The ACCC export parity metric recognised in yesterday’s Heads of Agreement currently indicates local spot gas prices of between AUD$60 and AUD$70 per gigajoule over the next year. That would be around 20 times the average price before East Coast exports of Liquefied Natural Gas began, and around 8 times the previously expected export parity range…
“The agreement is crushingly disappointing for Australian industry reliant on gas to make the products that Australians need. As they roll off existing gas contracts, Australian manufacturers of bricks, chemicals, plastics, paper, aluminium, steel, fertlisers, cosmetics, gloves and masks will increasingly face crippling energy bills they will have to pass onto consumers.
Having access to affordable energy is a key plank of the manufacturing industry. Without it, Australian manufacturers will not remain competitive and will shutter. It is that simple.
By locking in nose-bleed gas and electricity prices for the foreseeable future, the Albanese Government has signed the industry’s death warrant.
With friends like ‘Labor’, the manufacturing industry sure doesn’t need enemies.
