Australia’s federal is supporting $1.5 billion manufacturing plan:Prime Minister Scott Morrison
The national sovereignty a part of the manufacturing plan has quite $107 million earmarked for “supply chain resilience.”
Australia’s federal is selecting six priority areas for support during a $1.5 billion manufacturing plan Prime Minister Scott Morrison will outline during a pre-budget address.They are resources technology and important minerals processing, food and beverage, medical products, recycling and clean energy, defense, and space.
The plan also will specialise in building “supply chain resilience” after the Covid pandemic exposed the risks of not having enough capability to quickly produce large amounts of important items like personal protective equipment.In a Thursday speech to the National Press Club, released beforehand , Morrison will say this budget “will be one among the foremost important since the top of the Second World War”.
“This budget are going to be necessarily different in scale to those we've seen for generations. it'll respond responsibly to the challenge of our time.Morrison says Australia needs “to keep making things”. Manufacturing employs about 860,000 people and before Covid it generated quite $100 billion in value annually for the economy and quite $50 billion in exports.
He says the government’s “practical strategy” has three elements: creating a business environment where manufacturers are often more competitive, aligning resources to create scale in areas of competitive strength, and securing sovereign capability in areas of national interest.The policy involves considerable government intervention picking winners in terms of sectors, and collaborating with them in planning.A $1.3 billion “modern manufacturing initiative”, focused on the priority areas, will invest in projects to assist manufacturers “scale up” and make jobs.
The government and industry will partner to develop industry-led roadmaps to spot growth opportunities, barriers to scale and what's needed along the worth chain in each area.These maps, to be prepared by April, are going to be guides for investment and actions by both government and industry. they're going to set goals and performance indicators – in jobs, research and development, investment – for the subsequent two, five and ten years.
The manufacturing plan is one among a series of policy initiatives the govt is announcing within the run-up to the budget.Others have included deregulation of credit policy to stimulate lending, changes to insolvency provisions to cushion struggling businesses, measures to market digitalisation, and policies on energy.
Morrison strongly talks up the importance of gas for the economic recovery generally and therefore the manufacturing sector especially .“If you’re not for gas, you’re not for jobs in our manufacturing and heavy industries,” he said. “For many manufacturers, it's half the matter .”
The National Covid-19 Co-ordination Commission had advised that gas was 20-40% of the many industries’ cost structures.Morrison says the government’s “modern manufacturing initiative” will provide a replacement investment vehicle to assist overcome the barriers to scale.The national sovereignty a part of the manufacturing plan has quite $107 million earmarked for “supply chain resilience.”
“We cannot ignore the apparent . The efficiency benefits of hyper-globalization and highly fragmented supply chains can evaporate quickly within the event of a serious global shock just like the Covid-19 pandemic.“It is merely sensible that Australia consider more options to protect against supply chain vulnerability for critical necessities and to secure us against future shocks,” Morrison says.
Currently, a government review is being done of Australia’s supply chain vulnerabilities within the wake of the pandemic.The resilience initiative “will support Australian manufacturers investing in capabilities to deal with areas of identified acute vulnerability domestically, and to make sure they're during a position to contribute to the availability chains of trusted partners and like-minded countries.
“Sovereign Manufacturing Capability Plans are going to be developed in key areas and a variety of policy options are going to be considered including procurement and long-term contracting arrangements, also as actions to market better information sharing and collaboration between government and industry.”
But Morrison stresses this doesn't herald a return to protectionist policies. He says Australia is complementing its actions to spice up domestic sovereign capability through greater collaboration with like-minded countries.The manufacturing policy also includes $52.8 million for the prevailing manufacturing modernisation fund which provides grants to support transformational technologies and processes.