Scott Morrison reveals seven goods that need to be manufactured domestically in the ‘national interest’

Scott Morrison has singled out seven key goods Australia will focus its attention on in the “national interest” amid global supply chain challenges.

Scott Morrison will single out seven key types of goods Australia needs to turn its attention to “in the national interest” amid increasing global supply chain disruptions.

In the wake of Covid-19, China’s trade coercion and the war in Ukraine, the Prime Minister is on Tuesday expected to outline what categories of goods Australia should focus on manufacturing domestically.

Giving his keynote address to the Australian Financial Review’s business summit, Mr Morrison will say government has a “vital” role to play in maintaining Australa’s economic security.

He is expected to point to crucial diesel exhaust fluid AdBlue as an example of this.

Last Christmas, trucks were almost brought to a halt after China banned exports of urea, which is an essential ingredient for AdBlue.

Prime Minister Scott Morrison has listed seven key categories of goods that need attention in the ‘national interest’. Picture: NCA NewsWire / Dan Peled

But the government intervened and secured a deal with a local manufacturer amid the worldwide shortage.

“It should be emphasised that, for the most part, Australian businesses have successfully managed supply chain risk these past couple of years – specifically Covid and trade coercion and now the terrible crisis in Ukraine,” the Prime Minister is expected to say.

“Businesses know their business best and they are primarily responsible for supplying the vast majority of goods that Australians want and need.

“(AdBlue) highlights the vital enabling role government can and should play in maintaining economic security and identifying industry solutions to specific problems.”

The Prime Minister is expected to say that while Australia cannot produce everything domestically, there is an “enormous potential” to grow the manufacturing sector.

He will outline seven key initial categories of goods that need attention and are considered important to the “national interest”.

These are:

• Semiconductors – Used in electronics and computing, they are materials which conduct a current but only partly. Examples include computer chips and high grade silicon wafers.

• Agriculture chemicals – Examples may include fertilisers, pesticides, herbicides, rodenticides as well as chemical compounds like urea or ammonia.

• Water treatment chemicals – These could be substances used to disinfect or purify water. An example of this is chlorine.

• Telecommunications equipment – This could include hardware used for mobile phone networks, including routing.

• Plastics – Examples may include packaging, piping, construction or medical products made from Polyethylene, polypropylene or PVC.

• Pharmaceuticals – Common and specialist drugs and medicines as well as ingredients needed to make them.

• Personal protective equipment – This could be gloves, masks and other products that have been used in the fight against Covid.

The Prime Minister is expected to use examples where progress has already been made in these areas.

The Prime Minister used AdBlue as an example of why there needed to be a ‘just in case’ model for manufacturing.

He will point to an agreement with Moderna to establish mRNA manufacturing in Australia and an investment in mask manufacturing at Med Con.

“In this new era, we can’t just be thinking about ‘just in time’ supply,” he will say.

“We also need to think about a ‘just in case’ model, which supports greater diversification and larger inventories of key goods.

“Trusted partners are critical.

“That is the world we are living in now – and we all know that supply chain disruptions are lower when we plan and prepare for them.”