Senate debates

Tuesday, 25 August 2020

Adjournment

Manufacturing

7:20 pm

Photo of Claire ChandlerClaire Chandler (Tasmania, Liberal Party) Share this | | Hansard source

When you talk to Tasmanians and Australians about what our economy should look like as we look forward to defeating COVID-19 and getting our businesses back up and running at full speed, there is one theme that is raised more than any other: we need to get back to manufacturing things in this country. We all acknowledge that gone are the days when every part, every component and every specialist product will be Australian built, but it is clear that the pendulum has tipped too far in recent decades. Instead of thinking about how we can build something in Australia, the easy option of buying something built overseas has become the default. In the wake of COVID-19 we need to think differently.

It's great to see that in Tasmania the Liberal government, under Premier Peter Gutwein, has put local jobs at the forefront of decision-making about how to build the next generation of Bass Strait sea transport. The government-owned TT-Line, operator of the two Spirit of Tasmania vessels, has identified that they need to increase the capacity for passengers and freight across Bass Strait in the years ahead. The plan was originally to sell the two existing ferries and commission two new larger ships to be built in Finland at an estimated cost of up to $850 million.

With the COVID-19 economic crisis hitting the economy, Premier Gutwein and infrastructure minister Michael Ferguson have quite rightly made the call to look closely at whether it is necessary to spend $850 million of public money in Europe, and have instead put together a task force to assess what opportunity there is for Tasmanian and Australian boatbuilders to get involved. We've already seen that the new approach taken by the Tasmanian Liberal government can deliver thousands of Tasmanian jobs.

Tasmania is home to one of the world's most innovative boatbuilders: Incat. When the Tasmanian government announced that they were looking to get local companies involved, I spoke to people in the ferry industry, and I went and met with Incat to see if there was an opportunity for them to build a vessel in Tasmania which could fix the capacity issues on Bass Strait, and the great news is they can. To have thousands of Tasmanians working for the next two years on a new vessel built on the River Derwent, with components manufactured across the strait, is exactly the type of local manufacturing outcome we need right now.

One option available, which I wrote about in The Mercury newspaper soon after the announcement by the Tasmanian government, is to keep the two existing 'spirits', which are still perfectly functional, and will be until at least 2028, and add a Tasmanian-built Incat catamaran to the route. Thousands of Tasmanian jobs in the next 24 months when we need them most? Tick. Increased choice for passengers crossing the Bass Strait? Tick. More capacity for both passengers and vessels? Tick. What's the better plan for local jobs? Spend $850 million in Finland or spend a fifth of that in Tasmania and directly create work for thousands of Tasmanians? Yet, bizarrely, Tasmanian Labor is out in the media trashing the plan to involve Australian boatbuilders. Both Incat and West Australian based Austal have expressed interest in being part of the build, but the headline on the front page of Tasmanian newspapers on Monday was, 'Labor backs Finnish builder.' Labor says the Spirit of Tasmania replacement vessels should be built by Finnish shipyard Rauma Marine Constructions. What an extraordinary position for the Labor Party to take, saying to Tasmanian and Australian businesses who have put their hands up that they're not up to the job. What is the motivation for Labor MPs to cheerlead for a Finnish boatbuilder? I would be fascinated to hear a Tasmanian Labor senator justify that position.

This is a great case study of the new approach to local manufacturing which is needed post-COVID demonstrated by a Liberal government. The old approach of, 'It's easier to buy from overseas,' is being spruiked by the Labor Party. I look forward with hope to the new approach winning out and in the months ahead being able to go and see new Bass Strait vessels being built in Tasmania by Tasmanians.