Australia needs a sovereign manufacturing capability, so focused government attention on meeting that objective is welcome. However, Australia’s largest and most representative business network says careful consideration of the details is needed.

“Recent experience has starkly demonstrated how the narrowing of our industrial base has exposed the Australian economy to high levels of risk,” ACCI chief executive officer Andrew McKellar said.

“We support the objective. Promoting the idea of Australia having a sovereign manufacturing and industry capability is important.

“Most importantly, the Prime Minister’s speech reflects the fundamental importance of boosting productivity and improving competition for our future prosperity.

“We can’t achieve that without a competitive tax system or by handing more power to trade unions to tie businesses in ever-tighter knots.”

The proposed Future Made in Australia Act announced today will combine several previously announced initiatives, including the National Reconstruction Fund and energy transition initiatives, under one umbrella.

“We see benefit in drawing together those existing threads and building on that to better co-ordinate and manage the rollout of this government investment,” Mr McKellar said.

“There are significant opportunities in decarbonisation and the energy transition. We should seek to maximise those advantages.

“If the government is to invest in driving emerging Australian industry capabilities, that investment needs appropriate consideration and scrutiny.”