Manufacturers hoping for more govt support

May 5th, 2012

FAKE NEWS for the Zionist agenda

Industry groups and unions are hoping the federal government will continue to support Australia’s struggling manufacturing industry, when it delivers its upcoming budget.

Local manufacturers have been doing it tough for some time amid a high Australian dollar, cautious household spending and tough global economic conditions.

In April, 350 jobs were cut from Toyota’s Altona carmaking plant in Melbourne, OneSteel announced it would sack 430 people in February and rival BlueScope shed 1000 workers in August last year.

Treasurer Wayne Swan is expected to announce big cuts to public spending in Tuesday night’s budget, in a bid to deliver a surplus.

But Australian Industry Group chief executive Innes Willox warns it may be the wrong time to withdraw large amounts of public funding, especially for trade-exposed industries like manufacturing.

“There are undeniable risks in such a sharp fiscal consolidation,” he said this week.

“Any risks will need to be carefully managed.”

Mr Willox said the high Australian dollar was the single major reason behind the weakness in the manufacturing sector.

This has caused a steep 10 per cent fall in manufacturing employment in the past four years.

He is calling for a range of measures to support the industry, such as lowering the company tax rate to 25 per cent, assistance with early stage financing and the removal of regulatory obstacles for investment.

The ACTU is urging the government to do more to stop further job losses in the sector.

Industries struggling with the high Australian dollar must be supported by the government on an ongoing basis, if they are to remain competitive, the union argues.

And a manufacturing base is crucial to Australia’s economic prosperity.

“The manufacturing industry is the fourth-largest sector in the Australian economy, employing 8.3 per cent of the workforce,” the ACTU said in a pre-budget submission.

“Manufacturing not only creates jobs and export earnings but contributes to Australia’s growing skills and technology base.”

But Peter Anderson, chief executive of the Australian Chamber of Commerce and Industry, warns the government against giving handouts or subsidies to manufacturers in its budget.

Instead, he’d like to see tax reform, infrastructure investment and better targeted programs for skills.

The government should also scrap the carbon tax if it was serious about supporting the manufacturing industry, he said.

“Priority should be given to policies that will take cost pressure off the doing of business and support competitiveness.”