FED:Govt wants more competitive manufacturers

AAP General News (Australia)
08-24-2011
FED:Govt wants more competitive manufacturers

By Colin Brinsden, AAP Economics Correspondent

CANBERRA, Aug 24 AAP - The federal government wants to train manufacturers like athletes
so they can compete on the world stage.

It has appointed former Queensland premier Peter Beattie to the new role of resources
sector supplier envoy to help coach manufacturers to compete in the lucrative resources
market.

The government also will invest $50 million in a Buy Australian at Home and Abroad
scheme to help local suppliers benefit from the mining boom.

Innovation Minister Kim Carr said move was about building the capabilities and partnerships
that will give local forms a "red-hot go" to compete for new work.

"It's about giving Australian firms the opportunity to make sure they get a fair go,"

senator told reporters in Canberra on Wednesday, flanked by Mr Beattie and Resources
Minister Martin Ferguson.

Australia trained to compete at the international level, "to the very highest level".

"The least we can do is to train our companies to compete on the same scale."

The announcement comes just days after BlueScope Steel announced it was axing 1000
jobs, saying it faced a series of factors that were hitting its bottom line.

Other major employers also are shedding jobs, despite the resources industry soaring,
with manufacturers faring worst under the pressure of a strong Australian dollar.

But neither Senator Carr nor Mr Ferguson had found "concrete evidence" that Australian
steel makers had been shut out of the tender process when competing for major resource
projects.

Both ministers said they were prepared to investigate any claims.

Mr Beattie will help Senator Carr and Mr Ferguson set up a resources sector supplier
advisory forum by October.

"Helping our manufacturers better compete in the lucrative resources market is an important
part of ensuring the future of manufacturing," he said.

The forum is expected to have representatives from the steel, LNG, coal, iron ore and
mining technology and services industries.

The government has appointed Dennis O'Neill to be the next steel supplier advocate,
a position vacant since last year.

Mr Ferguson said the government wanted to promote links with global supply chains wherever
they are.

"We can help turn opportunity into commercial reality," he said.

Senator Carr said Australia had world-class manufacturers who could add value to major
global resources projects.

"I'm absolutely confident Australian manufacturing will weather this storm. It will
come through much stronger."

AAP cb/rl

KEYWORD: ECONOMY BEATTIE UPDATE

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