Jones welcomes Government action to support local manufacturing (06/10/2011)
Stephen Jones MP has welcomed action by the Australian Government to support local manufacturers by making contracting arrangements for large mining projects more transparent and by extending local industry participation plans to cover a larger number of government-funded projects.
The Federal Member for Throsby, an electorate with a large manufacturing base, has been campaigning for the Gillard Government to embrace both measures, including last month introducing a private member’s motion into Federal Parliament calling on the house to support Australian manufacturers.
“I’m pleased that the Government has listened to concerns of Australian manufacturers, the unions that represent the workers and industry bodies such as the Ai Group and the Australian Steel Institute,” Mr Jones said.
“Our manufacturing sector is in distress. The high value of the dollar, rising costs of raw materials, weak demand at home and abroad and the structural shakeout of the economy due to mining boom have pushed many local operations to the brink.
“These measures will give our manufacturing companies a fighting chance to win work on government-funded infrastructure and large resource sector projects.
At the conclusion of the Future Jobs Forum, Prime Minister Julia Gillard announced that the Federal Labor Government would create more opportunities for Australian businesses to compete for work.
“The Prime Minister has shown real leadership by announcing these changes that will deliver more transparency, greater accountability and give our manufacturers a fair shot at winning local work,” Mr Jones said.
Prime Ministerial Taskforce
The Government will establish a Prime Minister’s taskforce, drawn from manufacturing industry leaders and unions, to co-ordinate and catalyse the work occurring across government and enable a rapid response to structural adjustment.
"I will personally chair this taskforce, and Industry Minister Kim Carr will be the deputy chair. Other senior ministers, because this is a whole-of-government task, will be members of the taskforce," Prime Minister Julia Gillard said.
"I do genuinely believe that we can be a country that continues to invent things and make things. I want our economy to be one that includes high-quality, good-paying jobs for Australian workers in manufacturing. It’s a vital part of our economy, and it’s got to be a long-lasting part of our economy," the Prime Minister said.
The Federal Labor Government will:
- Make major federal grants of $20 million or more, including grants to the States and Territories, contingent on maximising opportunities for Australian businesses.
- Require future project developers to publish more extensive details on opportunities available to Australian businesses if they want to receive a five per cent tariff exemption on imports for major projects through the Enhanced Project By-law Scheme (EPBS).
Federal grants
This announcement will see Australian industry get a fair opportunity to compete for work on billions of dollars of projects supported by federal grants.
In 2010–11 there were more than $6 billion in grants valued at more than $20 million across the main agencies responsible for awarding large grants
The Government already requires Australian Industry Participation (AIP) Plans for its own major procurements.
The changes will now extend the requirement for AIP Plans for federal grants of $20 million or more and for grants of $20 million or more to the States and Territories where they do not apply their own industry participation plans.
While the Government does not support proposals for mandatory minimum local content obligations, local suppliers will have the opportunity to compete on level terms in bidding for government-supported projects.
Publishing of Australian Industry Participation Plans
Following consultation with manufacturing industry stakeholders at the Future Jobs Forum, it will be a requirement for participation plans to be made public for the first time, providing greater transparency.
Tariff exemptions
The Enhanced Project By-law Scheme (EPBS) is a tariff concession scheme that provides eligible projects with relief from the five per cent general tariff that applies to imported goods.
To be eligible for this concession, major projects already have to provide Australian Industry Participation plans so Australian businesses can compete for work.
The Government will now require project proponents to list additional, more detailed information on opportunities for Australian industry on a public website for EPBS projects greater than $2 billion.
The Government will also ramp up monitoring of the scheme, requiring more comprehensive evidence of the opportunities being made available to Australian industry for all projects under the EPBS.
This will create more opportunities for Australian businesses to compete for lucrative contracts in the resources sector and across the economy more generally.
Working Group
The Government will appoint a working group of stakeholders to advise on the implementation of the above measures, which will be consistent with Australia’s international trade obligations.
Membership of the working group will include industry representatives, unions and Commonwealth agencies as well as State and Territory government representatives.
