By Mark Stone
VECCI welcomes the State Government’s response to the Victorian Competition and Efficiency Commission’s (VCEC) report into the state’s manufacturing industry ahead of Christmas.
A timetable should now be set for the implementation of these policies.
VECCI is pleased that the Victorian Government will retain both investment incentives and local content rules, as this ensures local companies will benefit from investment boosting local employment.
VECCI also welcomes a commitment from the Government to increase opportunities for local manufacturers to access some the $17.6 billion a year the State Government spends on goods and services, through improving its procurement processes.
The focus on higher performing individual and smaller manufacturers is also welcomed as these businesses are often the frontline of innovation in the industry.
VECCI is also pleased that the Government is taking up our recommendation to revamp the way the Department of Business and Innovation interacts with industry – cutting the number of programs and making them more tightly-focussed and manageable is a welcome step.
A localised approach will also ensure that Government intelligence regarding the manufacturing industry is improved and should result in better outcomes for the industry and Victoria as a whole.
The implementation of a specialist manufacturing service, Manufacturing Solutions Victoria, will help the state’s industry confront its multiple challenges of a high Australian dollar, skills shortages, a sluggish domestic market, rising overseas competition and the approaching carbon tax.
The State Government’s response to VCEC’s report shows a strong commitment to ensuring the manufacturing sector will confront the challenges ahead.
VECCI is correct. There is an opportunity for Vic manufacturing businesses as China becomes higher cost, esp. in terms of niche production.