One would think the Government would have learned from the supply chain issues that plagued us during COVID-19. They haven’t.
A strong manufacturing sector is essential for national resilience and national security. It’s also the segment where we train and then employ skilled people, develop intellectual property and generate value that then circulates throughout the community. A strong manufacturing sector means more exports and better balance of trade figures. We must foster manufacturing.
The Federal Government doesn’t like to interfere in the market. It is philosophically wedded to a fair playing field and the economic theory of comparative advantage. But the reality is that markets are skewed.
In Australia, rightly, government imposes costs on businesses such as minimum wages, leave loadings, long service leave, quality standards, occupational health and safety standards, environmental standards and more, and then buys cheaper goods and services from countries where few or none of those obligations exist. It buys from multinational companies that don’t pay tax and ignores Aussie companies that, rightly and fairly, do pay tax.
As manufacturing companies fail, it makes it harder for other manufactures to operate. Conversely, as manufacturing grows, it makes it easier for other manufactures to thrive.
The Federal Government must take action to establish the environment that supports investment in and support for Australian manufacturing and capitalising on Australia’s elements of difference that can provide advantage. Imagine using our gas to give our manufacturers cheaper energy, gaining an advantage over foreign competitors (instead of giving our gas away to multinational companies who give us nothing for our resource). Or our lithium to establish a battery manufacturing industry, rather than supporting foreign battery manufacturers.
We need to stop just exporting our rocks.