Productivity Commission chair Danielle Wood said the government’s push to subsidise Australian manufacturing risks creating a “class” of business that relies on government handouts., Wood said Labor’s “future made in Australia” budget pitch to invest in local growth industries such as clean energy, wasn’t going to come without cost.“If we are supporting industries that don’t have a long-term competitive advantage, that can be an ongoing cost.
“We risk creating a class of businesses that is reliant on government subsidies, and that can be very effective in coming back for more.” Spruiking the government’s new election platform this week, Prime Minister Anthony Albanese said Australia was in a race for global talent and needed to bolster its sovereign capabilities across crucial industries, such as energy.Albanese said Australia must establish a scheme to capture a slice of the economic growth from clean technologies, including green metals, hydrogen, batteries, solar panels and wind turbines.
“If we want strong manufacturing in this country, and we do, we need to get back to the fundamentals of affordable, reliable energy, flexible industrial relations that delivers higher real wages and competitive workplaces at the same time as approvals and deregulation that encourages businesses to invest, to take risks, to employ, to drive competitiveness and productivity,” Taylor said on ABC Radio National on Friday morning.
“They’re the fundamentals that have worked historically, and they’re the fundamentals that will work in the future.”
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