Senate debates

Tuesday, 26 August 2008

Questions without Notice

Employment: Manufacturing Industry

3:08 pm

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | | Hansard source

Mr President, I congratulate you on your election and also Mr Deputy President Ferguson on his election. My question is to Senator Carr, the Minister for Industry, Innovation, Science and Research. How many working families with breadwinners in the manufacturing sector have become unemployed families since the Rudd Labor government was elected to office?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

It is unfortunate that there have been a number of business closures in recent times which have lead to job losses in the Australian manufacturing sector. These job losses are very much regretted. In an open economy such as ours, we are not immune to the pressures of global competition. In such an environment, business continues to restructure and to rationalise to remain competitive.

The Australian manufacturing sector, I remind the senator opposite, employs 1.1 million Australians. Over the past 12 months some 22,300 new jobs have been created in the manufacturing sector. The value of the manufacturing sector in 2007 was at a record level of $103 billion in real terms, representing some 10.05 per cent of GDP. Manufacturing exports remain strong and have increased by an average annual rate of five per cent over recent years and, in 2007, increased by 7.2 per cent to a record of $87.1 billion.

The government has in place a range of measures to assist affected workers find alternative employment. For example, Job Search Support provides jobseekers with practical job search assistance, including advice on job search techniques and placing their resume on Job Search, one of Australia’s largest job networks. It is also about creating opportunities for new business to open, and this has occurred in such areas as food and beverage, renewable energy and IT. The Australian manufacturing industry has a positive future.

I recognise that Australian manufacturing is facing increasing costs as a result of higher interest rates and a strong dollar, but the government is working to turn that around. This is a government that is focused on managing the economy to ensure that the operating environment is conducive to the long-term viability of the Australian manufacturing sector. Lowering inflation is critical to that objective.

We saw in the previous government’s term essentially a policy of ‘set and forget’ being the order of the day. This government, however, has taken an entirely different view. We have established a series of reviews which will be instrumental in guiding innovation and manufacturing industry policy. In this regard, the government is optimistic that the future of manufacturing sectors such as the automotive industry will be bright if the right investment decisions are made now. I look forward to hearing something positive from the opposition with regard to the importance of the Australian automotive industry.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | | Hansard source

Mr President, I ask a supplementary question. I note that the minister did not tell us the number of people that had been thrown out of work and so I ask: is the government’s inability to tell us the number of job losses indicative of Labor’s callous disregard for the human tragedy that is flowing from Labor’s deliberate slowing of the economy, which is turning many working families into hurting families?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

What I did indicate to the shadow minister was that the manufacturing sector continues to be a significant employer in Australia. The sector employs well over 1.1 million Australians, largely in high-wage, high-skilled jobs, largely in quality jobs, largely in full-time jobs, which stands in stark contrast to the attitude of the previous government, which sought to drive down wages, sought to drive down job security and, through its Work Choices legislation, sought to undermine the confidence of working people and their capacity to actually put themselves forward in terms of the future prosperity of this country.

What we have actually seen in the last 12 months is 22,300 new jobs created. There have been a series of highly regrettable announcements with regard to job losses across a range of— (Time expired)

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.