The federals government’s manufacturing taskforce has urged policy makers to increase investment, support, and communication to keep the industry alive.
Non-government members of the Prime Minister’s Taskforce on Manufacturing have published their final report on how to support the struggling industry – one of the most significant recommendations being reassessing the new research and development tax incentive arrangement.
The report states if manufacturers are not in a position to capitalise on emerging opportunities, “the Australian economy as a whole will be weaker, narrower and more vulnerable.”
The taskforce’s 117-page report makes 41 recommendations, including a five-point policy strategy for improving the situation.
The recommendations include the government being prepared to alter the new R&D tax incentive if unintended consequences come out of it, as well as examining ways to reduce the wider tax burden on business.
In particular, the taskforce wants a reduction of rates of tax on business income.
It’s also urged the government to increase investment in infrastructure projects to stimulate demand and undertake measures to stimulate residential and commercial construction.
‘Smarter Australia Precincts’ are also recommended, which would involve large-scale facilities that bring together a critical mass of capabilities and industries, while an online platform be establish to be the “nervous system of the national innovation system.”
Under the recommendations, Enterprise Connect would have its funding significantly increased and connections with other agencies formalised.
SMEs’ difficulty in security capital has also been addressed, with the taskforce urging the government to review mechanisms by which those businesses seek funding.
“This would consider existing capital market failures, the applicability of loan guarantee schemes and the scope for new entrants to the SME finance market,” the report reads.
The reccommendations have been supported by the Australian Industry Group, which said it was a vote of confidence in the sector.
Chief executive Innes Willox said the report proposes a positive agenda for improving support for the industry.
"Without such an agenda, we risk travelling further down a path that would leave us more vulnerable to commodity prive fluctuations and more exposed to a reliance on the export of a handful of commodities to a handful of countries."
The Chamber of Commerce and Industry WA has also come out in support of the reccommendations; chief executive James Pearson said it showed positive signs that the industry was looking at ways to build on its strengths and create new ones through innovation and better use of technology.
