Jobs Forum: AIG welcomes manufacturing taskforce, “name and shame” for large infrastructure projects unveiled

The Australian Industry Group has welcomed the announcement of a manufacturing taskforce, as the Federal Government vows that businesses receiving Federal Government grants for projects will need to beef up their efforts to use Australian products and services.

Under new plans announced by Prime Minister Julia Gillard at the jobs summit in Canberra, resource companies looking for tariff exemptions on imports on products for their $2 billion-plus projects will need to spell out publicly how Australian businesses can win work. Infrastructure and industry projects linked to Federal and State Government grants worth more than $20 million will also need to list local suppliers, mirroring an existing program for Commonwealth grants.

The plan has been welcomed by unions and some business groups, amid concerns about how the high Australian dollar is affecting exporters, although the resources sector response has been lukewarm.

AIG chief Heather Ridout says a taskforce to “specifically address the key issues facing manufacturing in Australia is a positive step and recognises the significant pressures the sector is currently experiencing.” Gillard will chair the manufacturing taskforce, which will look at battling through the high terms of trade.

“Additionally, the measures around procurement and skills will see Australian manufacturing compete on a more level playing field. The measures announced today reflect a number of key principles proposed by Ai Group to lift Australian industry participation in procurement for major government and private sector projects.”

“While there is no silver bullet to fix all the issues and all the pressures bearing down on manufacturing, over time these measures should contribute to building a more productive and competitive manufacturing sector,” Ridout says.

Announcing the plan, Prime Minister Julia Gillard said the plan was about giving “Australian businesses a fair go”.

“If you want Australian taxpayer dollars, then you’re going to have to give Australian businesses a fair chance to compete for work.”

And in news for the tourism sector, a tourism strategy is set to be announced by the year’s end and operators will be eligible to apply for grants under the Enterprise Connect program run by the innovation department.