Dumbing down industry even further with Dutton

By Peter Roberts

Both major political parties should hang their heads in shame for allowing Australia’s value-adding manufacturing sector to sink to become such a small share of our economy.

No single party is responsible for us being the least complex economy among advanced nations, however a special place is held by the Liberal-National coalition which only recently dared the automotive industry to leave our shores, further impoverishing capability.

However even that record could be dwarfed by a Peter Dutton led government which has shown its true colours in recent days.

Dutton led his party in voting against a National Reconstruction Fund which will co-invest $15 billion alongside the private sector in a model proven by the success of the Clean Energy Finance Corporation (also a Labor initiative opposed by the Liberals).

In July the Liberals said of the National Reconstruction Fund: “The reality is this Bill will do nothing to alleviate the pressure Australian manufacturers are facing because of Labor’s economic mismanagement and for too many businesses it is already too late.”

Now the Liberals and the Greens have opposed the Future Made in Australia bill which established the framework under which $15 billion over 10 years in tax breaks and subsidies for critical minerals processing and ‘green’ hydrogen production will be spent.

Shadow treasurer Angus Taylor described the scheme as pork barrelling – well the Liberals should know what that is – while Greens leader Adam Bandt calls it an ‘election slush fund for more coal and gas’.

Never mind that the Future Made in Australia is in some ways an extension of the Morrison government’s $2 billion critical minerals facility and $2 billion Hydrogen Headstart programme.

Never mind that the government is powering ahead with funding renewable energy and storage projects, while trying to establish a manufacturing supply chain to support them.

In fact, the NRF and Future Made in Australia and NRF are the best things manufacturing has had going for it in decades of politicians talking endlessly about a ‘country that makes things’, while presiding over the opposite.

While I have criticised the quantum of Australia’s current investments compared to those taking place in Europe and the US, and the pace of rolling out the NRF, these policies promise to begin a revival in value adding based on our comparative advantages, and potential competitive advantage in green energy, quantum computing, and defence among others.

Yes there is a lot of silly talk around this from politicians of Australia being a green energy superpower – let’s please first learn to walk before we try to run.

The latest may be small steps but they are genuine attempts to reverse the decline in manufacturing that has seen it shrink to a fifth of its size in the 1970s.

On the other hand opposition leader Peter Dutton has staked his future to a claim that he will be resource sector’s best friend by cutting the power and influence of environmental groups to challenge mining proposals.

Frankly I haven’t noticed environmental groups stopping too many mining projects.

And he would hold back renewables which are the cheapest form of new electricity generation as well as offering local manufacturing potential, in favour of expensive and risky nuclear power where everything complex will be imported.

Scuppering the NRF and Future Made in Australia while celebrating digging holes and shipping out dirt will only deepen Australia’s structural industry problems, making us even less complex – if that is actually possible.

Picture: Peter Dutton