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July 24, 2009
Paul Howe, the anti-climate change unionist, is calling for an manufacturing policy to ensure that Australia continues to make things rather than just digs rocks. He says that in the middle of the worst global recession since World War II, Australia must do everything we can to support manufacturing and position the industry for the future.
The future, we should add, means adaption to global heating and an emissions trading scheme to deal with greenhouse gas emissions. Howe has run a campaign against an emissions trading scheme in the name of protecting jobs ( job security) from the extra costs of electricity under an an emissions trading scheme.
It is fair enough to defend manufacturing as opposed to Quarry Australia. However, what sort of things does Howe have in mind? Howe has come across as defending old Australia in the face of the new in the past.
Recently, Howe has been talking about a 21st century Steel Plan---a stratagem to save a key industry in the face of the global economic crisis. Howe is advocating motor vehicles, of course. And the steel industry. Howe says:
we need to build on the new steel plan launched earlier this year by the AWU. Steel's position as a strategic sector of the economy, with vital capability to meet infrastructure and defence requirements, should be recognised with greater accountability in the tender procurement process -- that is, if a project does not source Australian steel, it would need to explain why not -- to keep foundries busy supplying nation-building projects.
Buy Australian steel is the message here. It implies subsidies to encourage private sector buyers to take Australian steel over cut-price steel from global conglomerates. Does Howe's suggestion that a national manufacturing policy should build on progress in steel and automotives plus adding value to Australia's natural resources through investment in downstream processing mean something like an uranium enrichment plant? A national action plan, according to Howe, would build:
on progress in steel and automotives, elements include how best to add value to Australia's natural resources through investment in downstream processing; integrate trade and industry policy more effectively by getting the Industry Capability Network, Austrade and Enterprise Connect working together. We also could encourage the emergence of a new generation of global firms anchored in Australia, including in the $6 trillion environment and low-carbon industries; forge organisational design and skills formation into a competitive advantage; educate and inform so that manufacturing attracts the best and brightest students; and deal with the consequences of the next boom and an appreciating exchange rate to ensure the nation retains a viable manufacturing sector.
Now Howe does mention the $6 trillion environment and low-carbon industries. What does "green technology" mean in terms of manufacturing in new forms of renewable energy, a knowledge economy or sustainable cities, given Howe's antagonism to an emissions trading scheme, the shift to a low carbon economy, and greater use of renewable energy rather than coal?
Update
Howe's argument is that the impact of the economic crisis is starting to bite. Steel plant furnaces going offline from reduced demand from steel, and they may not be started up again, resulting in the loss of tens of thousands of jobs. Without significant government intervention, regional centres such as Wollongong and Newcastle would be devastated.
The AWU's steel plan for the 21st century does appear to be centred around production subsidies, guaranteed sales to government infrastructure projects and extra protection from foreign takeover bids under an industry "survival strategy".It is about helping struggling steel manufacturers to adjust and restructure from reduced demand.
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Hey I'm with Paul. Why would a billion Chinese want to make steel if they can just come buy it here?
BHP obviously knows NOTHING about the iron and steel business to send it all offshore. What we need are lots of Industry Plans, so uncompetitive manufacturers and their employees can live in the style to which they have become accustomed thanks to public subsidies.
I hope Rudd's mob has the fortitude to resist this kind of nonsense but I would not put a lot of money on it.