Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Securing the future of Australian manufacturing

By Kim Carr - posted Thursday, 10 April 2008


Let me start by laying my cards on the table:

  • Do I support manufacturing? You bet I do.
  • Do I think it's vital to the Australian economy and Australia society? Absolutely.
  • Do I think governments should create an environment in which manufacturing can flourish? No question.

When Kevin Rudd said he wanted Australia to remain “a country that actually makes things”, I cheered.

Advertisement

This is a sector that employs over a million Australians, generates over $40 billion worth of exports a year, and accounts for two-fifths of all business expenditure on R&D. It is also a sector that underpins everything else we do, whether it's in resources, agriculture or services. You can't have a balanced economy without manufacturing. You can't have a just and inclusive society without manufacturing either. Anyone who doubts that should go and talk to those million workers, their families, and the communities that depend on them.

For all these reasons, we remain firmly and unapologetically committed to securing the future of manufacturing in this country.

That's the good news.

The somewhat tougher news is that the government can't support manufacturing at any cost or on any terms. No government in the world can do that. The quid pro quo for our support is that manufacturers must be ready to innovate and export. They must be efficient and outward-looking. They must be prepared to invest in local know-how to create their own competitive advantage. It's easy for politicians to make these exhortations, but the Rudd Government is backing its words with actions.

Reviews

Among the first things I did as minister was to launch four major reviews.

Why conduct reviews? There are two good reasons.

Advertisement

The first is to re-engage people in the democratic process by giving them the chance to speak and taking the time to listen. The second is to create a reliable evidence base for future policy development.

The four investigations launched in the last two months are:

  • a review of the national innovation system chaired by Dr Terry Cutler;
  • a review of the Cooperative Research Centres program chaired by Professor Mary O'Kane, which is part of the innovation review;
  • a review of the automotive industry conducted by Steve Bracks; and
  • and a review of the textiles, clothing and footwear industries conducted by Professor Roy Green.

All Australians have a stake in the first, and huge numbers have a stake in the others.

The innovation review will help us understand the connections between the different elements that make up Australia's national innovation system. More importantly, it will suggest ways to increase and strengthen those connections. It's especially important that we bring Australian industry into the picture - not just as a consumer, but as a producer of new ideas. That's why I wanted to run the four reviews together.

The automotive and TCF reviews will show what innovation can do for industry. The innovation and CRC reviews will show what industry can do for innovation. The imperatives are clear. We need to connect sectors, institutions and individuals to promote collaboration and knowledge transfer. We need to boost private investment in R&D and get the best possible return on public research spending. We need to concentrate resources for maximum synergy and efficiency.

These reviews will show us how.

It is essential that as many people as possible contribute.

The national innovation system review panel has called for submissions, including submissions on the CRC program. The deadline is April 30. Steve Bracks released an issues paper on March 31, with submissions due on May 14. Professor Green is still finalising the timetable for the TCF review. You can find out more at the www.innovation.gov.au website.

Enterprise Connect

Then there's Enterprise Connect.

This is a $200 million initiative to give small and medium-sized businesses better access to new ideas, know-how and technologies - which the businesses can use to become more innovative, efficient and competitive.

Our aim is to lift productivity across Australian industry by encouraging people to work smarter, not just harder.

With productivity growth struggling along at below-average levels for the last five years and slumping to zero in 2007, the need for action on this front is more urgent than ever.

Enterprise Connect will create a network of knowledge-creation and knowledge-transfer sites around the country. There will be five new manufacturing centres in Sydney, Melbourne, Adelaide, Perth and Burnie, which will be joined by Queensland's QMI Solutions.

There will also be five dedicated innovation centres - a Creative Industries Innovation Centre, a Clean Energy Centre, a Remote Enterprise Centre in Alice Springs, a Mining Technology Innovation Centre in Mackay, and an Innovative Regions Centre in Geelong.

Industry innovation councils will be established to forge ongoing partnerships and develop a long-term approach to lifting productivity.

The final element is the $10 million Researchers in Business scheme to support the placement of university and public research agency researchers in businesses with new ideas that will benefit from expert input.

The primary aim of the scheme is to speed the dissemination of expertise, increase competitiveness, and create jobs.

However, one important side-effect of a similar scheme in the UK is that four out of five researchers taking part were offered a job by the host company on completing their project, giving an ongoing boost to their new employer's internal innovation capacity.

The future

Everyone knows the challenges we face - climate change, globalisation, water scarcity and more. Our task is to meet those challenges in ways that boost production, skills, jobs and exports. That's the key to securing the future of manufacturing in this country. It's about investing in R&D and embracing new technologies.

It's about making ourselves indispensable to global markets and supply chains by leading the way in quality, design and innovation. Which brings me back to the quid pro quo I mentioned at the beginning.

It is the government's job to create the right policy environment - to tame inflation, increase productivity, strengthen the national innovation system, unlock the knowledge created and preserved within our universities, provide infrastructure, expand skills, and develop strategies for specific industries like automotive and TCF.

It is industry's job to take the initiative. It's no good waiting for opportunities to emerge. We have to go out and create our own opportunities. None of us can secure Australian manufacturing against the future. There is no running away from globalisation, the rise of China and India, or the emergence of new technologies and new consumer demands.

What we can do - government and industry together - is make sure Australian manufacturing is part of the future, whatever form it takes.

  1. Pages:
  2. 1
  3. 2
  4. 3
  5. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

84 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Kim Carr is ALP Senator for Victoria and Shadow Minister for Higher Education, Research, Innovation and Industry, as well as the Shadow Minister Assisting the Leader for Science.

Other articles by this Author

All articles by Kim Carr

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Kim Carr
Article Tools
Comment 84 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy