Julia Gillard facing revolt over manufacturing future

PM Julia Gillard

Prime Minister Julia Gillard after holding a business round table with officials and union delegates at the Australian Institute for Innovative Materials in Wollongong. Picture: James Croucher
Source: The Australian




JULIA Gillard faces a possible caucus revolt over her refusal to hold an inquiry into the future of manufacturing.


And while Tony Abbott has called on the Prime Minister to heed the calls of workers and employers over the issue, the Greens have threatened to force a parliamentary inquiry upon the government.

Ms Gillard, who yesterday met workers about to lose their steel industry jobs in Wollongong, south of Sydney, rejected any need for an inquiry, saying it would delay action to help people who had lost their jobs.

“My focus is on action,” she said.

Steelmaker BlueScope last week sacked 1000 steel workers and 400 contractors in NSW and Victoria and announced it would stop exporting steel. It blamed the decision on the high value of the Australian dollar, driven by the mining boom, sparking calls by unions and employers for assistance for local manufacturers, including an inquiry into the industry and requirements for mining companies to use more Australian local content in their projects.

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The leaders of two manufacturing unions and the Australian Industry Group, who met Ms Gillard to discuss their fears on Monday, said the Prime Minister had left open the idea of establishing a formal inquiry to consider an industry support plan.

Yesterday, Ms Gillard, who had previously rejected any retreat to protectionism, said there would be no inquiry, sparking an angry response from Labor MPs.

Senator Doug Cameron said the decision was arrogant and “politically dumb”.

He told The Australian he would ask the next caucus meeting, to be held in two weeks, to defy the Prime Minister by backing an inquiry. “I just think it’s premature to be saying there should be no inquiry. It’s economically irresponsible not to take a close look at the manufacturing industry,” he said.

“I will move at the next caucus that we should have an inquiry.”

He added that he expected a “broad base” of support.

Senator Cameron’s solution would partly involve a review of Australian management skills and tougher measures to encourage big miners to invest in manufacturing jobs.

Senator Cameron said BHP Billiton could invest up to $1 billion and other mining giants could also afford to invest.

Labor MP Stephen Jones, whose south coast seat of Throsby is bearing the brunt of the NSW job losses and who leads a group of 25 MPs sympathetic to the manufacturing industry, said he would back an inquiry.

“I want the government to do more to support the industry,” he said. “But if we can get policy movement on industry participation and support without an inquiry, I support that. It’s the outcome I want.”

Greens MP Adam Bandt said he would seek support for a parliamentary committee inquiry.

“A strong manufacturing industry is vital to our future prosperity and economic security,” he said. “The government can’t sit on its hands. If the government won’t establish an inquiry, parliament should. If Labor won’t back my motion, I hope the Coalition will.”

In Melbourne, the Opposition Leader said: “It’s very important that government policies are informed by the facts and I can’t understand why the Prime Minister doesn’t want to listen.”

Additional reporting: Joe Kelly

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