Kevin Morgan: Incentives needed to support advanced manufacturing
Palmer United’s Tasmanian Convenor, Kevin Morgan, says if Australia is to thrive once again we must stop exporting jobs, raw materials and revenue to our trading partners, but instead fully develop Australian products in Australia before they are released to the international marketplace.
Mr Morgan is adamant opportunities are there for Australia to take its value-added products to the world market and maximise their potential, but not before systems are in place to support the process from start to finish.
“We are losing jobs, opportunities and our competitive edge when intellectual property developed by Australian companies moves offshore to take advantage of the research and development tax incentives available in other countries,” Mr Morgan said.
“We must combine information, technology and innovation to improve our manufacturing performance.
“It is high time the government put incentive schemes in place for our advanced manufacturing businesses to fully develop their products within Australia – from the initial concept, through to research, development, manufacture and shipping.
“The government must engage with groups like the Australian Advanced Manufacturing Council, a policy group made up of chief executives from global and domestic high-end manufacturers whose business model is to sell high margin products into global markets.
“In advanced manufacturing, Australia’s high wage structure is not an impediment since we’re not necessarily competing with low-cost countries. Our real competition in this space comes from countries like the US, UK, Germany, Switzerland, Singapore and Ireland.
“If we want the jobs, economic growth and wealth generated by smart, advanced manufacturing then the government must put strategies in place now or we will once again find ourselves at the mercy of economies that do,” Mr Morgan declared.