“We saw manufacturing leave this country in the 70s and 80s. We want to bring it back.”
That’s PM Anthony Albanese today on the “Future Made in Australia Act”, which will seek to compete with US President Joe Biden’s massive spending plans under the US Inflation Reduction Act.
BCA Chief Executive Bran Black said more detail was needed on how much funding would be provided given the importance of avoiding a direct subsidy war with other nations.
“For Australia to succeed, we need to address the fundamental issues of our competitiveness, so the private sector can confidently invest given we know the government can’t do it alone,” Mr Black said.
“We welcome the government’s intent; however, critical to the success of this announcement will be reducing red tape, and at the very least ensuring there are no extra layers of red tape added to an already complex operating environment.
“Australia has many natural advantages and we can’t rest on our laurels by assuming that past wins will translate into future success.
“Incentivising investment with the right regulatory settings is crucial, particularly for our net zero transition, so we reach our energy potential and make the most of our critical minerals advantage.”
Mr Black said while the BCA has always advocated for more open and free trade, a new global approach means increased government engagement is needed.
“Any government intervention needs to be carefully calibrated and measured so taxpayer funding isn’t wasted, inflation isn’t fuelled further, and private funding isn’t crowded out,” he said.
“We will need to see the detail of how projects will be funded, planning coordinated and facilitated, and no further changes in areas such as workplace relations which make Australia uncompetitive.”
For more on this story, read this story by our Canberra-based Parliament House colleague Matthew Doran.
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