Sunday, February 17, 2013

Manufacturing $1 billion jobs package

Rollforming set to gain from this?

Prime Minister Julia Gillard has made a pitch to blue-collar workers, unveiling details of the Government's new $1 billion jobs package. The legislation is designed to improve the benefits Australian companies see from large-scale projects undertaken in the country.

The basics outlines of the plan are:
  1. Large companies will be required by law to give local firms the opportunity to bid for contracts before they are sent offshore.
  2. When there are projects worth more than $500 million, they will need to have an Australian industry participation plan.
  3. A series of 10 new manufacturing precincts will also be established to develop new products and skills to break into new markets.
  4. Work with small businesses with less than 5 employees - with financial access with job growth.
  5. Bigger businesses currently benefiting for a special research and development tax advantage will be forgoing that advantage to pay for this plan. No money will be required except from big business?
Here's the video today - 
$1 Billion in a 15 minute spurt.
 This PLAN is the result of the Prime Ministers Manufacturing Taskforce set up a few years ago.
Who's happy with this new $1 Billion Jobs Plan - The national secretary of the Australian Manufacturing Workers Union, Paul Bastian, says the jobs package largely reflects what it has been campaigning for. Here he is a happy little VEGEMITE:
Where's Bill Shorten or Paul Howes giving the BIG TICK?
Why is this good package being introduced now, to save the manufacturing industry - when for the last 6 years it's been in rapid decline - hence the Prime Ministers Manufacturing Taskforce was established over 12 months ago. I wrote an article on this TASKFORCE of Unions, Manufacturing , government and institutions in April last year called Steel Industry in Bed with Unions and ALP . These were some media comments at the time.
  1. But Ms Piacentini said the government efforts amounted to little.
    Her fabrication facility in Melbourne’s western suburbs recently tendered to supply steel to a Kmart distribution centre in Queensland but was beaten by BlueScope Steel, from which Page Steel buys its raw steel in Australia.
    “BlueScope fabricated the entire thing offshore at their facilities overseas yet they’re getting $300 million from the government to keep manufacturing local,” she said. This one is not good as BlueScope are pulling the wool over the eyes of government and the unions - they have no idea how badly BlueScope want out of the union & ALP government movement! Unfortunately their management is too gutless to state this in the MSM!
  2. The owner of Wagga Wagga-based Steel Supplies, Shane Robinson, added that handouts to the big steel makers would not help the industry to survive.
    “Australians are gutless defeatists,” he said. “We lay down too quickly.” This highlights the anger in smaller manufacturing groups that the government is not listening to! Time to stand up!
  3. Boeing Australia president Jeff (The AFR article is wrong - it should read IAN) Thomas, who is a member of the Prime Minister’s manufacturing task force, said after the group met yesterday "that he expected regulation to be discussed at today’s Council of Australian Governments gathering". Big deal! He's on lots of government committees as described above - real dedication here!
  4. Local steel importers and fabric­ators say "the government is doing ­little to address the real issues, and instead giving BlueScope and One­Steel too many handouts, including the $300 million steel transformation package and more support to launch anti-dumping complaints". So pay the union dominated ALP affiliated manufacturing industries but not the SMALL FRY? Pretty obvious where the pay cheque comes from - Mr. Swan?
  5. Treasurer Wayne Swan said the government “fully understands the pressures facing some sectors like manufacturing – that’s why we are putting in place key reforms like a cut to the company tax rate”. Yes! more mumbo jumbo from this bloke - is he really listening to the small fry - NO! He's listening to the UNION organised big industry! What bloody key reforms??
  6. Mr Combet’s office said the government would “increase scrutiny of implementation of Australian industry participation plans” at resources projects that are seeking tariff concessions to ensure a fairer playing field. What a load of garbage - this is the CO2 TAX man the said it's only going to cost a sausage sandwich a week??? How out of touch is this bloke! The AIP scheme is now being challenged by all the major resource sector investors.  The RECIPE is add CO2 TAX, Mineral Resource TAX, AIP scheme, RET etc and then they have the hide to tell state governments to reduce GREEN AND RED TAPE?????? Mr. Combet - increase scrutiny of implementation of your own motives here please!
  7. Steel Solutions is a privately owned business that already sells steel and steel fences to major resource projects. But Mr Robinson said "the cost of importing tubular steel to manufacture fences had spiked by 10 per cent because of an interim duty placed on imports resulting from an anti-dumping claim lodged by OneSteel."
    “We’d buy locally if we could but BlueScope and OneSteel won’t sell to me because we’re too small so I have to import,” Mr Robinson said.
    “On top of that we’re stung by the carbon tax, which we get no assistance for.” This is getting to the heart of the manufacturing industry - join the ALP & the UNIONS or get stuffed!
  8. The chief executive of Gold Coast-based Digga Machinery, Suzie Wright, said "it was cheaper to import completed fabrications than it was to buy the raw steel from local distributors as a result of BlueScope and OneSteel’s market domination."
    Her company is setting up a factory in the United States to build gear boxes and augurs because the high Australian dollar makes exporting from local operations unprofitable.
    “We’ve fought long and hard to keep manufacturing here in Australia but we just can’t do it any more,” Ms Wright said, adding to the chorus of complaints against the price of sourcing steel from Australia. “If we could buy steel for the same price that the Chinese can, we’d have a chance.” Are the government and unions listening to any of these complaints?? NO they are not! Digga Machinery is an iconic Aussie Industry and we will loose this company to overseas. What do Wayne, Greg and Paul think - well nothing really - because Digga is not a UNION or ALP business - do you get the drift here?
  9. The AWU’s Mr Howes was supportive of measures to include Australian content in big projects, he admitted the biggest challenge facing the local steel industry was the high currency, and blasted the Reserve Bank of Australia for not cutting interest rates to assist. Oh really Mr. It Only Costs a Sausage Sandwich a Week leader of UNION of all UNIONS - get real - get out and live in a small business like Digga Machinery, Steel Solutions, Steel Supplies and Page Steel - you may just realise how out of touch you are with the new Australia and its majority of workers and the owners of these small businesses that employ 100's thousands in the steel industry! You Sir - need some hard days as a normal every day worker!
So all this stuff has been redone from a year ago and relabeled the $1 billion job plan.

So where's the money coming from:
A federal government plan to cut $1 billion from research and development tax incentives to big business to pay for measures to boost smaller companies has raised concerns it could be counterproductive. To fund this, the government would cut the research and development (R&D) tax incentive for businesses with an Australian turnover of more than $20 billion.
Mr Combet said this would only affect 15 to 20 companies.
Well isn't this just great  - reduce innovation tax incentives from big companies to fund government run innovation centres (10 of them - Julia said) across Australia. This is just another PINK BATT GARRET mess waiting to happen. With the election in September - do you think we will see any results for business increase in profits and employment in manufacturing?

This is probably another CON job by the government that said that Prime Ministers Manufacturing Taskforce would not impact on the bottom line. The only advantages gained in this is the union and government have suddenly introduced another RED TAPE PROBLEM for business to get ahead.

Does Combet and Gillard know what a rollforming machine actually does, do they know what flashing machine is, have they seen a gutter stop being pressed? NO, NO.

And here's the new AWU secretary Mr. David Oliver:
"It has long been a concern...that major resource and infrastructure projects do not even look at what they could source locally," ACTU secretary Dave Oliver said."
And here he is in 2011 as an up an coming man for the workers? He said we can't control the private sector - but what we need to do now is invest in the things that will make us more efficient and we're not doing that now.

But Mr. Paul Howes statement here:
The move has angered unions, with Australian Workers Union boss Paul Howes maintaining the Prime Minister "made it very clear" she was open to looking into an inquiry.
All these unionists and lawyers in federal politics currently could not give a stuff about Roofing Contractors, Rollformers, Fastener Manufacturers, Insulation manufacturers (Thanks for the PINK BATT mess), transport contractors carting stuff all over Australia to deliver metal roofing products.

Here comes another shipment of BlueScope from ASIA?

What will the $1 Billion Job Plan bring to the Rollforming Industry.
Disaster and more costs.

UPDATE: Thanks to Trevors comment - I have added a poll at the right to guage peoples opinion on the New $1 Billion Plan?


  1. what a bunch of a holes
    need a big clean out very soon

  2. This government will pull as much money as it can out of business - spend it on advertising and invest nothing in this new Plan. A shocking con job again.

  3. they are going to embed "australian industry opportunity officers" in aech company that have projects worth over $2 billion. guess AWU will be suppling these genisus purchasing regulators and paid for by the taxpayer.

    another stupid scheme

  4. Lots of big pollie talk schemes yet our manufacturing is nearly extinct. Bring on September and the end of the worst government in Australia's history by Bob Katter country mile !

    1. I agree Trevor - all talk - how long will it take them to set this up?

      Plus set a POLL at the top right to see peoples reaction?

  5. I would suggest too little too late... but it looks like if it did go ahead it would be more jobs for the boys first.
    More Labor cronies to oversee how our money is spent - could be an interesting year