Billion-dollar budget injection set to create 300,000 jobs post-lockdown
Victoria’s once-booming industries will be at the epicentre of the world’s first steps towards coronavirus recovery, with a spending blitz designed to unleash a new era of manufacturing supremacy, turbocharging businesses to scale up their operations and swarm global markets.
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Victorian medical, food and beverage businesses will become world leaders in a $1.5bn budget plan to kickstart the nation’s manufacturing sector and create 300,000 jobs.
Scott Morrison’s spending blitz is designed to unleash a new era of manufacturing supremacy, turbocharging businesses to invent new products, scale up their operations and swarm global markets.
Grants worth up to $80m will be pumped into six priority areas where Australia has a competitive advantage: medical products, defence, recycling and clean energy, food and beverage, space, and resources and minerals.
Victoria’s expertise in the food, beverage and medical sectors puts it at the forefront of the plan, with regional manufacturing hubs in Ballarat, Bendigo and Shepparton an example for the country.
“We make things in Australia. We do it well. We need to keep making things in Australia. And with this strategy, we will,” the Prime Minister will say on Thursday.
The bold bid to restore Australia’s manufacturing power has been prompted by the COVID-19 pandemic, and includes sweeping plans to strengthen our supply chain for medicines, medical equipment, food and chemicals in the event of future crises.
Industry Minister Karen Andrews told the Herald Sun the plan would create 300,000 direct and indirect jobs — but Australians needed to back local businesses for it to succeed.
“We can’t just manufacture goods and sit them on a shelf,” Ms Andrews said.
Mr Morrison will announce the budget initiative in a speech on Thursday, in which he will also promise “there will be more” tax relief, amid speculation the government will fast-track legislated income tax cuts.
By April, long-term plans will be set for each key manufacturing sector, with $1.3bn in grants to fuel an investment boom over the next four years backed by states and territories, industry and research institutions.
Automation, digitisation and artificial intelligence technologies will be prioritised to make production more efficient and help businesses surge into large-scale production that opens up global export markets.
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Ms Andrews pointed to Melbourne-based biotech giant CSL as a world leader that the government wanted to see “take it to an even greater level”.
Other local success stories include Ferguson Plarre Bakehouses, a family-run Victorian business since 1901 which is now growing with new robotics technology.
Mr Morrison will tell the National Press Club that while Australia can no longer “try and do everything” and “compete with labour-intensive, low cost manufacturing economies”, the advanced manufacturing sector is ripe to grow.
“Today’s advanced manufacturing enterprise stretches from the labs doing the research and development, the skilled workers doing the design and engineering, through to sales, marketing and after-sale services,” he will say.
“Around half of the jobs in manufacturing are in these parts of the manufacturing process.”
“We need a deeper appreciation that advanced manufacturing is not just about what we make — it’s how we make it and how we sell our products domestically and internationally.”
Mr Morrison will say the government’s broader agenda — including affordable and reliable energy, industrial relations reforms and training and skills development — is also designed to bolster the $100bn industry instead of relying on “subsidies and work arounds”.
Further investment and research and development incentives are expected in next Tuesday’s budget.
Mr Morrison will praise the “agility and adaptability” of local manufacturers which helped avert major shortages of critical supplies during the pandemic.
But while the government will not return to protectionism, the Prime Minister will vow to plug any holes in Australia's supply chain to “secure us against future shocks”.
A whole-of-government review is now underway and $107m will bankroll a “resilience initiative” to support manufacturers making products needed in the national interest.
REEFS SET FOR POST-LOCKDOWN REDEVELOPMENT
Reefs will be restored in Victorian waterways and infrastructure at world heritage sites will improved as part of a $61 million boost for Australia’s natural and cultural landscape.
The pre-budget package was predicted to create or support 1000 jobs by preserving and improving Australia’s best assets and increasing tourism demand.
More than half of the money will fund conservation work and infrastructure upgrades at natural and cultural sites including the Mount Buffalo Chalet.
A new water crossing will be built and a track will be improved at Budj Bim Cultural Landscape, near Macarthur.
The site was added to UNESCO World Heritage List last year.
At least $20 million will go to rescuing native marine ecosystems, including shellfish reefs at Gippsland Lakes and Port Phillip Bay, to boost fish stocks.
Environment Minister Sussan Ley said the package would help the environment and business alike.
“We will restore native shellfish reefs lost decades ago through overfishing and dredging, creating spectacular dive hot spots, a paradise for recreational fishers and helping to protect local coastlines from erosion,” Ms Ley said.
“We will be embarking on a major program to support national and world heritage sites that will help preserve and enhance these areas while making them more accessible to Australians wanting to appreciate their unique qualities.”
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