My Address at the opening of Composites Australia and Cooperative Research Centre for Advanced Composites Structures Conference, Newcastle, 8th April 2014 Acknowledgements: Ms Genelle Coughlan, President Composites Australia Professor Murray Scott, CEO CRC for Advanced Composite Structures Distinguished Guests, Ladies & Gentlemen Good morning. It is pleasure to be here with you in Newcastle this is my home region, so I also say welcome, and it is an honour to be opening this conference, themed Materials for Lighter & Smarter World because I personally find the work that you do and the innovation you have achieved inspiring to say the very least, A couple of things are very clear when we talk about Australian manufacturing and composites. First—and there is no sugar coating it—manufacturing in this country is facing tough times. There are several reasons for this, but a high dollar, intense international competition, high input costs and low profit margins are just some of the factors conspiring to make life difficult for the sector. But this is the reality of the world we live in. And to prosper and grow our manufacturers must be prepared to adapt, to transform, and to re-invent themselves. The old ways of doing things, the old technologies and the old market strategies – simply won’t cut it. This is not to be negative or to berate the manufacturing sector. But the fact of the matter is we won’t get anywhere if we ignore the situation we are in. The world has changed, we need to change as well. Transforming Australian Manufacturing Australian manufacturing must consciously and actively carve out its own future and place in the global economy. This means identifying and focussing on where our strengths and competitive advantages lie. It means being innovative and embracing new technologies, new systems, and new ways of doing things. It means making the move to smart and high value added industries. It means identifying, targeting and servicing niche markets and most importantly it means having an export focus. It’s easy to stand here and say we need to do all these things. But we all know that achieving them will be the challenge we must face. It is important that we work enthusiastically and compassionately with affected regions and communities to deal with and overcome the fall-out from closures and job losses and to help them bounce back from adversity. Reviews of the South Australian and Victorian economies are underway in the aftermath of Holden and Toyota’s announcement that they will cease manufacturing in Australia by 2017. As part of this, the Government will establish a growth fund to help workers retrain for new jobs and to assist local manufacturers transition to higher value added production. Role of Government This Government is a champion of manufacturing and we are absolutely committed to helping the sector make the changes it needs to prosper. But long-term sustainability, competitiveness and profitability does not come through untargeted handouts. Long-term success comes from a sector that is independently viable and able to stand and succeed on its own merits. As the Prime Minister has said many times, no government has ever subsidised its way to prosperity. What government should be doing—and what we are doing—is getting the fundamentals in place that enable businesses to thrive and prosper based on their own drive and initiative. Our agenda is based on creating a stable and certain environment to let business get on with what it does best. Already we are making progress. Key Initiatives Legislation is before the Senate to repeal the mining tax. We will reintroduce bills to repeal the carbon tax with the clear intention of getting them passed as soon as possible, and we will cut the company tax rate will be cut by 1.5 per cent form 1 July 2015, bringing the new rate to 28.5 per cent. Unnecessary regulation is also in our sights. Regulation that allows markets to function better is fine, but regulation that is out of control is strangling the life out of business and stopping projects from getting off the ground. The fact that we have 130 plus national regulators and some 350 state and territory regulators indicates just how lopsided things have become. A few weeks ago, Parliament had its first ever repeal day: to abolish regulation and legislation that’s outlived its usefulness or is doing more harm than good. More than 9,500 unnecessary or counter-productive regulations and 1,000 redundant acts of Parliament were scrapped. This will save individuals and organisations more than $700 million a year, every year, and the plan is to save a billion dollars in red tape every year and let business flourish unfettered. We also know that productivity is the key to business growth – especially in manufacturing. That is why last December the Prime Minister established a taskforce to develop an Industry Investment and Competiveness Agenda. The focus will be on identifying economy-wide measures to boost competitiveness, lower the cost of doing business, encouraging innovation and boosting investment. The agenda will be a critical part of the Government’s strategy to provide a long term national plan for change and growth, and in moves which are of particular interest to the manufacturing sector we are establishing a $50 million manufacturing transition grant programme to help with the transition to new and higher value activities. Of course our government procurement policies do what they can to encourage and support Australian manufacturers, something that is particularly important in industries such as defence where composites are becoming so important. So, this is a government that appreciates how important manufacturing is to our economy. But I would reinforce to you that the days of short termism, political expediency and spin are over. What we are doing is building a competitive business environment in which businesses—including manufacturers—can transform and flourish. Importance of Composites Of all people in Australian manufacturing you understand this imperative for change, and you know that the future lies with industry itself grasping new opportunities, adopting new technologies and forging its own path to success. It doesnt matter if your in the aerospace, automotive, building & construction, civil infrastructure, energy, marine, mining or transport industry, the fact is that composites are an important part of the transition to a high technology, high value add manufacturing sector of the future. Composites exemplify innovation and we see them applied across the economy. Whether it be companies like Boeing Australia supplying wing surfaces for the new 787 Dreamliner or Carbon Revolution supplying carbon fibre wheels to companies like Porshe, BMW, Lamborghini and McLaren or Quickstep Technologies manufacturing advanced carbon fibre composites for the aerospace and defence industries, supplying the Joint Strike Fighter Program and Lockheed Martin’s Hercules transport aircraft or Skycraft using carbon and titanium to create the world’s first purpose built freestyle motor cross bike weighing just 75 kilograms, …the possibilities are boundless. Increasingly we are seeing composites being used in engineering for structures that need to be strong, rigid and lightweight and due to their ability to be tailored to meet the demands of extreme conditions, enables composites to be being put to use in the oil gas and petrochemical fields. Whatever the application, composites point the way ahead for Australian manufacturing and is up to us nourish and support them and by ‘us’, I mean all of us – government, researchers, and business. We all have our own roles to play in helping turn good ideas into good commercial outcomes, jobs and national income and this is of course why the work of Composites Australia and the Advanced Composites Structures CRC play such critical roles. Composites Australia For over 30 years Composites Australia has been on the ‘composites case’. You have represented interested parties across the composites community from fabricators to suppliers of raw materials. You have provided a forum for discussion, debate and exchange of ideas and you have represented the interests of the compost sector persuasively and effectively to government. Critically, you have been a source of vital knowledge in a developing field. I am told that since 2004 Composites Australia has scheduled over 800 speakers for the Australian materials and composites industry and over the next few days we will see over 60 papers and presentations on both the technology and business sides of the composites equation. The contribution Composites Australia has made—over an extended period—cannot be underestimated. Leading the way in emerging technologies is not always an easy task and I congratulate you on your ongoing dedication and vision. Indeed the very theme for this conference, materials for a lighter and smarter world, pretty well sums up your focus on new technologies, new frontiers, new applications and a new future for Australian industry. CRC for Advance Composite Structures I also want to acknowledge the performance CRC for Advance Composite Structures. Since its launch in 1991—with a primary focus on the aerospace and defence industries—this CRC has become a world leader in the development and applications of composites across the economy. Its work in areas ranging from UV curing composites, fire resistant surface materials and implanting new technologies for the Navy is delivering many innovative outcomes and applications. Add to this two CRC Star Awards and a JEC Europe Innovation Award and we see a CRC that I think is driving the transformation of Australian manufacturing. It’s exactly these type of achievements that have seen governments of all persuasions continue to invest in CRCs and the investments have been sound ones. By 2017 CRCs will have contributed some $7.5 billion to the economy, which is around 0.03 per cent of GDP annually and there is no doubt the CRC for Advanced Composite Structures has contributed its fair share to our economy. Conclusion I have every confidence that Australian manufacturing has a bright future. The talent, ideas and technology in the composites sector alone is a source of faith and inspiration. Under this government the focus will be on allowing business to get on with what it does best. Transformation will not be easy. The people and businesses here in Newcastle know that only too well. But look around and you can see that transformation is happening. It is achievable and the rewards are worth working for. So thank you very much for the opportunity to open your conference today. I sincerely hope that enjoy our region during your visit and I invite you to come back again . (Ends)
Posted on: Mon, 07 Apr 2014 23:59:25 +0000