Economic industry reviews for Vic and SA to inform manufacturing transition

In a call for submissions, federal Industry Minister Ian Macfarlane has announced reviews for Victoria and South Australia to guide Australia’s transition to “a new era of manufacturing and competitiveness” in preparation for the departure of Ford and Holden’s manufacturing.

The reviews, in consultation with the South Australian and Victorian governments, will inform the design of the $100 million growth fund to drive practical initiatives to assist the transformation from heavy industrial manufacturing to higher value-added production.

Minister Macfarlane said “traditional manufacturing is undergoing a global change” and, while this review is in response to the departure of Holden and Ford, “this is a chance to identify the future of smart manufacturing in Australia, to turn the spotlight on emerging strengths in other parts of the sector and to build an agenda on the future of manufacturing, not a continuation of the past”.

Submissions addressing ways to boost the competitiveness of the state economies are now invited throughout January 2014 and may address:

• encouraging investment and innovation in new or emerging high-growth sectors;
• identifying major infrastructure projects to boost productive capacity;
• supporting the diversification of automotive supply chain companies; and
• supporting the training and redevelopment of workers displaced by closures.

AusBiotech will be making a submission on further tax reform to provide incentives for innovation and manufacturing to support Australia’s future and keep us internationally competitive by attracting business and the resulting jobs and exports. AusBiotech advocates the introduction of the Australian Innovation and Manufacturing (AIM) Incentive, a ‘patent box’-style incentive to keep intellectual property in Australia once it reaches commercialisation and becomes highly mobile. Its purpose is to encourage innovation by providing an incentive to locate high-value jobs associated with the development, manufacture and exploitation of IP, including patents, in Australia.

Growth industries like pharmaceuticals - which have in recent years become Australia’s number one in exports of ‘substantially transformed’ goods, eclipsing the car industry and more than doubling the wine industry, and medical devices and diagnostics - are emerging as real prospects to absorb skilled labour for the automotive sector.

Submissions may be sent to economicreview@industry.gov.au. Further information can be found at www.industry.gov.au/industry/automotive/Pages/default.aspx.