Australian PM announces plan to boost manufacturing, overhaul economy

The government will introduce a ‘Future Made in Australia Act’ in the next few months that will combine new and current initiatives, he told the Queensland Media Club.

The initiatives will include competition reform, boosting renewables and other infrastructure, and making better use of Australian resources, he said.

"This is not old-fashioned protectionism or isolationism; it is the new competition," he said without divulging the cost that is to be incurred.

"This means looking at how government procurement can support small business and local manufacturing, as well as sustainability and the circular economy,” he said.

Citing schemes in the United States, the European Union, Japan and South Korea that involve direct government investments, tax breaks or other incentives, the prime minister cautioned Australia must offer the same or risk losing industries.

“All these countries are investing in their industrial base, their manufacturing capability and their economic sovereignty,” he said.

While Australia cannot compete ‘dollar for dollar’ with the massive US economy, an approach similar to that employed by the United States would nonetheless benefit the domestic economy, he said.

The prime minister’s announcement has been welcomed by several quarters, including the Smart Energy Council, the Australian Council of Trade Unions (ACTU) and Science and Technology Australia.

Opposition leader Peter Dutton, however, said the plan is unachievable and is “peddling false hope”.

“It is positive news that the Federal Government has plans to back its vision with a substantial policy agenda, putting renewable energy at the centre of our economic future,” Clean Energy Council chief executive Kane Thornton said.

“The highlighted areas of hydrogen, green metals and advanced clean energy manufacturing and assembly are genuine opportunities for Australia to expand, grow and diversify our economy centred around clean energy and create further demand for a large and skilled clean energy workforce,” he added.

Fibre2Fashion News Desk (DS)