Securing Australia’s Manufacturing Future
The Australian Government announced on 18 December 2013 a suite of initiatives to support regions impacted by the wind-down of the car manufacturing industry by 2017. These include: reviews of the South Australian and Victorian Economies; a Growth Fund to support initiatives that assist companies facing pressure in their manufacturing sectors; and the development of the Industry Investment and Competitiveness Agenda to focus on broader measures to promote national competitiveness and productivity.
On 30 April 2014, the Australian Government announced a $155 million Growth Fund to help industry adjust to the end of car manufacturing in Australia by 2017. The design and development of the Growth Fund was informed by the reviews of the South Australian and Victorian economies.
Reviews of the South Australian and Victorian economies
The Reviews of the South Australian and Victorian economies were chaired by Industry Minister Ian Macfarlane and comprised members of the Australian Parliament and leaders in the South Australian and Victorian business communities.
The Reviews were informed by public submissions and a series of industry consultations in Melbourne (22 January 2014), Adelaide (5 February 2014) and Canberra (24 February 2014).
The Reviews considered options to boost competitiveness of the South Australian and Victorian economies including:
- investment and innovation in high growth sectors in the affected regions;
- investment in infrastructure to boost productive capacity;
- diversification of automotive supply chain companies; and
- training and redeployment or workers displaced by closures
The Report of the reviews, Growing Opportunities: South Australian and Victorian Comparative Advantages, is available to view and download via links at the end of this page.
$155 million Growth Fund
The Reviews informed the design of a $155 million Growth Fund to help industry adjust to the wind-down of car manufacturing in Australia.
The fund supports initiatives to transition workers to new jobs, help businesses find new markets and invest in capital equipment, and support regions to invest in infrastructure projects through five elements:
- A $30 million Skills and Training Programme to help automotive workers recognise their skills and train them for new jobs, while they are still employed.
- A $15 million boost to the Automotive Industry Structural Adjustment Programme to extend the programme until 30 June 2018 and provide employment support to help redundant automotive workers find new jobs. This element will be delivered by the Department of Employment.
- A $20 million Automotive Diversification Programme to help automotive supply chain firms capable of diversifying to find new markets.
- A $60 million Next Generation Manufacturing Investment Programme to accelerate private sector investment in high value manufacturing sectors in Victoria and South Australia.
- A $30 million Regional Infrastructure Programme to support investment in non-manufacturing opportunities in regions affected by the closure of the car manufacturing industry.
The Australian Government contribution to the Growth Fund is $101 million. Holden and Toyota are each contributing $15 million to the Growth Fund. The South Australian and Victorian state governments will each contribute $12 million.
The various elements of the fund will be phased in from July 2014.
Administrative arrangements for the five elements of the Growth Fund are currently being finalised. Further information will be available in mid- 2014.
More information is available at business.gov.au, by phone, web chat, or via the online enquiry form.
Report – Growing opportunities: South Australian and Victorian comparative advantages