MANUFACTURERS have their backs against a wall, with industry insolvencies rising threefold in the last two years.
Skyrocketing energy expenses and reams of red tape has mounted pressure on the industry.
Member for Forde, Bert van Manen MP, says the Albanese Labor Government’s constant failings continue to hinder manufacturers.
“We know that manufacturing insolvencies have tripled since the change of government and the data shows we are seeing more businesses going insolvent than ever before.
“Margins are being squeezed and businesses are being left with little choice but to put staff off.”
Mr van Manen will host a Manufacturing Roundtable in his Forde electorate on Wednesday, October 30, to hear directly from impacted businesses.
At the top of the agenda will be the government’s Future Made in Australia scheme.
“This bumper sticker of a policy has failed at every opportunity to live up to expectations,” Mr van Manen said.
Joining him for the roundtable discussion in Beenleigh will be Shadow Assistant Minister for Manufacturing, Michelle Landry MP.
Ms Landry said the policy does nothing to address the key problems which are hitting manufacturers hard.
“Around 19,000 great Australian manufacturers have become insolvent since Labor took office. The reality is that this policy will not prevent more businesses from meeting the same demise.
“The Bill’s restrictive design, excessive red tape and lack of tangible benefits highlights a disconnect between the government’s promises and the harsh realities on the ground.
Shadow Assistant Minister for Manufacturing, Michelle Landry MP.
“I’ve met with countless manufacturers right across Australia and they’ve all reiterated the same message; they’re burdened by red tape, skilled worker shortages and high energy costs.
“The harsh reality is that this Bill does nothing to alleviate the immense pressure that manufacturers are facing due to the ongoing economic mismanagement by this government,” Ms Landry said.
Forde-based Technical Fabric Services General Manager, Evangeline Agius, said manufacturers felt left behind.
“The costs of manufacturing textiles in Australia puts all fabric manufacturers under enormous strain as brands/companies look for cheaper options, being China/India and other Southeast Asian countries,” she said.
“One major contributing factor is the cost of energy.
“I have had discussions with the other textile mills, and we are facing the same extreme difficulties.
“This is particularly disappointing, as billions of (government) dollars are being allocated to chosen industries e.g. renewable energy, whilst leaving every other sector seriously behind,” the TFS General Manager said.
Other manufacturing giants, such as Mars and PepsiCo, have been outspoken about the growth in their energy costs – suggesting it’s fast becoming too costly to do business in Australia.
PepsiCo say they’ve experienced a 300 per cent increase in their gas expenses in the past two years.
“Now, more than ever, we need a comprehensive economic plan to tackle costs and overheads to help our manufacturing industry,” Mr van Manen said.
If you’re in the manufacturing industry and would like to attend the October 30 roundtable, please email bert.vanmanen.mp@aph.gov.au
