The Victorian Government should urgently step up measures to secure local manufacturing jobs in response the global financial crisis and emerging international competition, the Manufacturing Alliance said today.
In a submission to State Parliament’s Inquiry into Manufacturing in Victoria today, Australian Workers’ Union Victorian Branch Secretary Cesar Melhem called for a stronger Victorian Industry Participation Policy (VIPP) to build local industry and jobs.
The AWU submission builds on earlier evidence to the inquiry from the Australian Manufacturing Workers Union – the AWU’s partner in the Manufacturing Alliance formed last month to promote the industry’s interests at all levels of Government. The two Unions together represent more than 250,000 workers.
State Government’s current policy risks favouring internationnal firms
“The State Government’s current Industry Participation Policy risks favouring international firms over local companies in Government tenders,” Mr Melhem said before appearing before today’s inquiry by Parliament’s Economic Development and Infrastructure Committee.
“The AWU is seriously concerned that the Participation Policy’s 40 per cent local content rule can be met by maintenance costs over the life of a project, for example allowing planned new trams to be fully imported, leaving Victorian industry to only maintain the vehicles,” Mr Melhem said.
The AWU submission cites data showing that 77,000 manufacturing jobs have been lost in the last year, while steel production has been cut by 50 per cent.
Strategic Significance projects should maximise support for local manufacturing
Mr Melhem also called for measures to ensure that major projects worth more than $250 million and declared to be of “Strategic Significance” under the VIPP maximise support for local manufacturing under mandated local content plans.
“The Council Of Australian Governments should also urgently approve Victoria’s plan for a national rail strategy so local manufacturing can have the critical mass and economies of scale required to attract international investment”, Mr Melhem said.
