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Call for a scheme to incentivise Victorian manufacturing to boost economy

Opposition Leader Michael O’Brien is calling on the state government to establish a scheme to incentivise manufacturing in Victoria. Here’s how the plan could work.

Victorian Liberal Leader Michael O'Brien. Picture: AAP
Victorian Liberal Leader Michael O'Brien. Picture: AAP

Businesses would have access to a $1 billion fund if they manufacture goods in Victoria under a Coalition plan to shore up the nation’s supply chain.

Opposition Leader Michael O’Brien has called for the Andrews Government to establish a scheme to incentivise rebuilding the sector in the wake of coronavirus restrictions.

The announcement is the latest push from the Coalition in its campaign to put pressure on the government’s handling of the COVID-19 pandemic.

It has sought to capitalise on public frustration with aspects of the state’s current coronavirus restrictions while putting forward an alternative blueprint for economic recovery.

The Bringing Manufacturing Home fund is a major pillar of the Coalition’s plan, with further announcements expected.

Melbourne’s CBD was deserted during lockdown. Picture: David Caird
Melbourne’s CBD was deserted during lockdown. Picture: David Caird

Money from the fund would be made available to businesses that relocate manufacturing jobs and facilities to Victoria and for existing businesses that wish to expand their operations.

Priority would be given to industries considered nationally important such as protective personal equipment, defence procurement and the processing of rare earths.

Mr O’Brien said rebuilding local economies would fuel the state’s recovery.

“Victoria has a real opportunity to create thousands of new jobs, attract millions of dollars of investment, while regenerating our own capability to produce critical supplies that we’ve otherwise lost to overseas,” he said.

“Victorians now need a government focused on delivering a jobs-led and business-led recovery.

“With Victoria losing more jobs than any other state due to the pandemic, we need an urgent and bold plan to turn this around.”

Surging demand for medical supplies and restrictions on imports from overseas have exposed Australia’s reliance on other nations for crucial supplies.

Local businesses have stepped up to the plate producing hand sanitiser, protective equipment and developing plans to produce ventilators but authorities have warned a long-term solution is also needed.

Nationals Leader Peter Walsh said the pandemic had exposed shortcomings in the local economy and the state’s manufacturing capacity.

“Victorians need jobs off the back of the pandemic, and investment support should not be delayed for multiple years because the government places restrictions on how quickly the fund can be rolled out,” he said.

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kieran.rooney@news.com.au

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Original URL: https://www.heraldsun.com.au/coronavirus/call-for-a-scheme-to-incentivise-victorian-manufacturing-to-boost-economy/news-story/90a1e48ae37589e936e46747d5cd180d