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Albanese’s plan to transform the Australian economy

In a recent speech, Prime Minister Anthony Albanese revealed a strategy to elevate domestic manufacturing and boost Australia’s economic advancement, offering federal assistance to pivotal industries. 

Prime Minister Anthony Albanese has unveiled an ambitious plan to boost local manufacturing and supercharge Australia’s economic growth.

Prime Minister Albanese said said the givernment will provide more details into costing the coming months. Images: Anthony Albanese PM/ anthonyalbanese.com.au

In the speech, he announced plans to introduce the “Future Made in Australia Act”, a legislative initiative combining new and existing measures to stimulate investment and job creation across key Australian industries.

Specifically, Albanese’s speech unveiled plans to utilise taxpayer-funded incentives to boost investment in hydrogen, green metals, and advanced manufacturing.

These new plans underpin a total economic reform, which, as Albanese explained, aims, “to drive growth, improve competition, lift productivity and create the next generation of prosperity and opportunity.”

In his speech, Albanese highlighted global uncertainty, competition, and disruptions as key reasons for Australia’s imperative to strengthen its domestic manufacturing sector.

“The benign assumption that free trade would spread unchallenged, and globalisation would guarantee peace and prosperity for all,” he said.

“Yet even in countries like Australia that have benefited enormously from the opening-up of our economy and engaging in our region, opportunity has not been shared evenly.

“In other parts of the world, the fault lines are far wider.

“Strategic competition is a fact of life,” he said.

Globally, trends in manufacturing and clean energy sectors have seen increased competition from emerging economies, rising demand for sustainable products, and the growth of renewable energy markets worldwide.

“Australia can’t afford to sit on the sidelines,” he said.

“Being in the race does not guarantee our success – but sitting it out guarantees failure as the world moves past us.

“An inescapable lesson of the past half century is that Australia cannot isolate ourselves from global economic change, even if we wanted to.

Foreign markets are helping facilitate industry growth. Image: AlexLMX/ShutterStock

With an overarching theme of investing into green energy practices and securing Australia’s sovereign interests, Albanese said that a new wave of reform is required to alter the countries increasingly challenged economic status.

“As the Treasurer, Jim Chalmers, has put it – Australia’s economy is not productive enough, not resilient enough and not competitive enough,” he said.

“We need a new wave of economic reform to change this.

“This new wave demands a new approach – and since the last election, our Government has been laying the foundations to deliver it.”

Albanese stated that foreign governments are facilitating industry growth, citing subsidies for local industry provided by the European Union, Japan, Canada, South Korea, and the United States under President Joe Biden’s Inflation Reduction Act.

“Nations are drawing an explicit link between economic security and national security,” he said.

“We must recognise that the partners we seek are moving to the beat of a new economic reality.

“In their different ways, they are re-aligning their economies to better drive and distribute growth across their own populations.”

Albanese alluded to the Governments future steps in achieving this plan, which will build upon the ‘new wave’ of economic reform.

“In next month’s Budget – and beyond – we’ll be building on that foundation,” he said.

“In this time of transformative opportunity, our Government will not be an observer or a spectator – we will be a participant, a partner, an investor and enabler.”

The Government is set to provide more details into costing within the coming months, but Albanese did provide a glimpse as to what can be expected.

“The preparation for what comes next, has to start now,” he said.

“This means looking at how government procurement can support small business and local manufacturing, as well as sustainability and the circular economy.

“Putting together the most efficient and effective combination of financing facilities and investor incentives to drive new economic growth.

“Securing greater sovereignty over our resources and critical minerals.”

The response to the plan has been mixed. As reported by Channel Nine News, Albanese’s plan has garnered support from various quarters, including the ACTU, Smart Energy Council, and Science and Technology Australia.

However, the Act has also received criticism from opposition leader Peter Dutton, who expressed scepticism about the plan’s feasibility, highlighting potential challenges and areas of concern.

Geoff Crittenden, CEO Weld Australia, expressed excitement over the announcement, but believes that there aren’t enough details available.

“I think everything in the plan is positive at the moment,” he said.

“I was very excited, and I’ve read some of the research that the Government published in the last couple of weeks, and it’s really good.

“But there’s nowhere near enough detail yet.” 

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