Wednesday, May 20, 2020

Today by Paddy Manning


Australia made
The Coalition shares the blame for the dire state of our manufacturing

Minister for Industry Karen Andrews

Economic sovereignty has an appealing ring to it, especially when Chinese social media users are helpfully describing Australia as a “giant kangaroo that serves as a dog of the US”. But when it comes to concrete plans to reassert Australia’s self-sufficiency, the Morrison government seems to have been caught on the hop, as it were. In her first address to the National Press Club today, Minister for Industry Karen Andrews put forward a lot of platitudes about the groundswell of support for Australian manufacturing in the wake of COVID-19, but had nothing to announce other than her support for buying locally. Lamenting Australia’s failure to add value to its resources and agricultural exports – as Andrews did today – is nothing new, and it is mildly depressing that the Coalition can’t seem to see past farm and quarry as sources of natural competitive advantage for this country. (What about our highly skilled workforce, for example?) It’s the Coalition that delivered the biggest blow to Australia’s manufacturing industry in recent years by killing off a domestic auto manufacturing industry suffering from a temporarily high local currency, and it’s the Coalition that is still proposing to cut almost $2 billion from the R&D tax-incentive scheme. The truth is, Andrews has a very ordinary story to tell.  

To be fair, last month Andrews did announce some $215 million for 200 projects in the government’s Manufacturing Modernisation Fund, and yesterday she announced a new industry matchmaking service, developed by the Advanced Manufacturing Growth Centre, to bring together manufacturers, suppliers and customers after COVID-19 disrupted global supply chains. 

But today’s speech was quite negative. Andrews spoke a lot about what Australian manufacturers should not do (try to be all things to all people) and could not make (the iPhone). “While COVID-19 has brought issues such as sovereign capability to the forefront and, frankly, exposed gaps in our manufacturing,” the minister said, “I am not suggesting that complete self-sufficiency should be our goal.” Most importantly, Andrews ruled out any big shift back towards protectionism or an interventionist industry policy. “The first point I would make about the future of manufacturing is – it must be enterprise driven. We are not looking at nationalising industries or proposing government-owned entities. History has proven the folly of that approach.”

Andrews sought to deflect criticism of the death of the car industry, saying that while it has “attracted media headlines, the fact is that many other sectors have been succeeding and growing in recent years”. For example? Food and beverage manufacturing has had 11 quarters of consecutive growth. The chemicals sector also grew at an increasing rate in April, apparently. It’s not a great record to point to after nearly seven years in government. 

Andrews said her vision for manufacturing was “not about re-creating the past, or reliving a golden era,” which is great, but talking up the prospects of an Australian space industry, for example, has also been going on for a long time and does not provide much hope. Nor does the tens of billions pumped into subsidising local shipbuilding in South Australia under a hastily struck $80 billion (and rising) pre-2016 election deal with a French submarine builder, which appears to be going badly off the rails even before construction starts. 

Karen Andrews had no answers as to how a high-wage economy like Australia’s might rely less on imported manufactures from lower-wage China, beyond exhorting locals to look at value and not just cost. Without veering too heavily into protectionism or embracing #DecouplefromChina, it would be a very good thing if Australia diversified its overseas trade, particularly as the relationship with China seems set to deteriorate, with Bloomberg flagging that wine, dairy, seafood, oatmeal and fruit are all candidates for further import tariffs. The Australian reported [$] that Scott Morrison and Indian Prime Minister Narendra Modi would cement new agreements to develop reliable supply chains in key strategic sectors, including medical goods, technology and critical minerals.

Australia will have to do more to support local manufacturers. Tweaking Commonwealth procurement guidelines, and adding in a new industry matchmaking service, is not going to cut it. 


“Angus Taylor, I’ll wait for the next policy that will be around in a few weeks’ time. I’ve lost count of the number of policies that he comes up with … The former Labor government … had a separate CCS fund for carbon capture and storage. And that was abolished by this government.”

Labor leader Anthony Albanese disses Energy and Emissions Reduction Minister Angus Taylor’s proposal to allow the Clean Energy Finance Corporation to invest in carbon capture and storage.

“We wanted to ensure the report responded directly to the terms of reference, particularly in times when it’s difficult to get people together in an effective manner.”

Labor senator Kim Carr, chair of the Legal and Constitutional Affairs Committee, explains why a report prompted by the murder of Brisbane mother Hannah Clarke and her children was tabled without taking submissions or holding public hearings.

Back on the tinnies
Pubs, restaurants and other businesses across the country are reopening, and the government is predicting an economic comeback. But will life, and the economy, really return to normal? Today, what one territory’s reopening can tell us about Australia’s potential recovery.

The fall in retail trade in April – a record in seasonally adjusted terms – after hoarding in March pushed turnover up 8.5 per cent.

AFR

“Masks provided to all passengers on each flight; enhanced cleaning of aircraft with a disinfectant effective against coronaviruses; sanitising wipes given to all passengers to wipe down seat belts, trays and armrests themselves; simplified service and catering to minimise touchpoints for crew and passengers; passengers asked to limit movement around cabin, once seated; [and] sequenced boarding and disembarkation to minimise crowding.”

Qantas announces its “Fly Well” program to get planes back in the air from June 12, without social distancing.

The list
 

“This novel, now a film, ignited a Korean #MeToo movement. It has cold brilliance and teeth. It is also terrifying. There will not be a female reader of this translation who will not identify with Kim Jiyoung, nor has there been a calmer dissection of an unidentifiable psychic pain that is certainly not particular to Korea.”

“Sumptuous food, crystal waters, crisp leisure wear: all of these can be encountered vicariously in The Trip to Greece. And right now, when there’s nowhere to go but the local park, such a virtual journey has more appeal than ever … The current context also makes the film’s indulgence more surreal, but then, the unjust distribution of wealth is a frequent subject for Winterbottom.”

“I am a single mother. I did not get full support from my own family in Malaysia. I have a son that I cannot take care of. I was introduced by a friend to her brother’s best friend, Kerul. He said it would be safer for me in Australia. He said, “Maybe you want to move to Australia?” I don’t know, but it’s something like gambler thing for me. Because life is a gamble.”

Paddy Manning

Paddy Manning is contributing editor (politics) at The Monthly and has worked for the ABC, Fairfax, Crikey and The Australian. He is the author of Body Count: How Climate Change Is Killing Us, Inside the Greens and Born To Rule: The Unauthorised Biography of Malcolm Turnbull.

 

The Monthly Today

Surveillance grates

The government’s response to the Richardson review needs close scrutiny

Image of NSW Premier Gladys Berejiklian

Game over

Premier Berejiklian’s position is untenable

Treasurer Josh Frydenberg

Cold comfort

The Morrison government gave us a recession we didn’t have to have

Image of Government Services Minister Stuart Robert

Government dis-services

Stuart Robert is doing the PM’s dirty work


From the front page

Surveillance grates

The government’s response to the Richardson review needs close scrutiny

Image of Stephen Bram’s work, Untitled, 2019, acrylic on canvas, 210 x 390 cm.

Currents of joy: Stephen Bram and John Nixon

Overlapping exhibitions by the two abstract artists convey their shared radical modernism

In light of recent events

Shamelessly derivative summer puzzle!
Image of Earth from the Moon

Pale blue dot

The myth of the ‘overview effect’, and how it serves space industry entrepreneurs


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