Skip to content
Government Federal, Manufacturing

Future Made In Australia Act Must Have Specific, Enforceable Local Content Requirements And The Right Investment

Weld Australia 3 mins read

Weld Australia welcomes Prime Minister Anthony Albanese’s announcement today of the Future Made in Australia Act, but urges the federal government to ensure that specific, enforceable local content requirements are formally incorporated and the right investments are made. Only then will the federal government strengthen local manufacturing, drive real economic growth, and create the next generation of prosperity and opportunity.

The Future Made in Australia Act presents a critical opportunity to bolster local economic participation in the renewable energy transition.

According to Geoff Crittenden (CEO, Weld Australia), “Weld Australia congratulates Prime Minister Albanese on his announcement of the Future Made in Australia Act. It has real potential to ensure Australia has affordable, reliable clean energy, a strong manufacturing industry, skilled workers, secure jobs and modern infrastructure. It could see Australia become a renewable energy superpower.”

“However, it is essential that specific, enforceable local content requirements are formally incorporated into the Future Made in Australia Act.”

“Australian businesses have long advocated for specific, measurable local content requirements in government contracts. However, tangible examples of local content procurement policies are yet to materialise in Australia,” said Crittenden.

“The federal government's Buy Australian Plan and the Australian Industry Participation scheme were bold steps aimed at harnessing the government's purchasing power to boost local industries. Yet, these schemes are failing to hit the mark.”

“Besieged by vague specifications, a lack of enforcement, and loopholes that allow for non-compliance, the initiatives have struggled to provide local businesses with a fair shot at government contracts. Current requirements are fragmented across state jurisdictions and

often fail to lead to new production capacity. Without action, the Future Made in Australia Act will be just as toothless,” said Crittenden.

“The federal government must work with the state and territory governments to implement a coordinated, nation-wide approach to local content requirements to maximise impact and enable new production capacity. The government must be specific when it comes to the use of Australian materials and components, and registers of business providers and their level of domestic versus foreign ownership.”

Weld Australia strongly recommends that a significantly favourable merit weighting be given to tenderers who guarantee local content of Australian fabricated steel as follows:

  • Onshore Wind Towers >60%
  • Offshore Wind Towers >40%
  • Solar Farms > 60%
  • Monopole Transmission Towers > 60%
  • Lattice Transmission Towers > 60%

“The Australian Government’s recent $1 billion investment in the Solar Sunshot program must be replicated in hydrogen and wind tower manufacturing. The domestic demand for wind towers over coming decades is huge. Based on AEMO scenarios, the market could range from $20 billion anywhere up to $80 billion.”

Globally, wind tower manufacturing is concentrated in China and experienced the largest cost increase of all renewable energy technologies due to global supply-chain issues arising from COVID—estimated by the CSIRO to be a 35% increase.

“A local heavy manufacturing industry, backed by government investment, would deliver speed to market and reduce Australia’s exposure to supply chain risk. Australia currently has reduced capacity in wind tower manufacturing because government contracts have long been offshored. However, major steel manufacturers such as BlueScope have expressed interest in wind tower manufacturing, as have Weld Australia’s members,” said Crittenden.

“Specific, enforceable local content requires and the right investment in heavy manufacturing will fortify domestic clean energy supply chains, boost investor confidence, and cultivate a skilled workforce for the energy transition, positioning Australia as a global renewable energy superpower.”

- ends -

 

About Weld Australia

Weld Australia is the peak body representing the welding industry in Australia. Our members are made up of individual welding professionals and companies of all sizes. Weld Australia members are involved almost every facet of Australian industry and make a significant contribution to the nation’s economy. Our primary goal is to ensure that the Australian welding industry remains both locally and globally competitive, both now and into the future. A not-for-profit, membership-based organisation, Weld Australia is dedicated to providing our members with a competitive advantage through access to industry, research, education, certification, government, and the wider industrial community. Weld Australia is the Australian representative member of the International Institute of Welding (IIW). For further information, visit: https://weldaustralia.com.au/

 

 

 

 


About us:

 

About Weld Australia

Weld Australia is the peak body representing the welding industry in Australia. Our members are made up of individual welding professionals and companies of all sizes. Weld Australia members are involved almost every facet of Australian industry and make a significant contribution to the nation’s economy. Our primary goal is to ensure that the Australian welding industry remains both locally and globally competitive, both now and into the future. A not-for-profit, membership-based organisation, Weld Australia is dedicated to providing our members with a competitive advantage through access to industry, research, education, certification, government, and the wider industrial community. Weld Australia is the Australian representative member of the International Institute of Welding (IIW). For further information, visit: https://weldaustralia.com.au/

 

 


Contact details:

Sally Wood on 0434 442 687 or sally@wordly.com.au

More from this category

  • Energy, Government Federal
  • 20/05/2024
  • 16:33
Solutions for Climate Australia

Two years after ‘Climate Election’: Coalition missing on climate

MEDIA RELEASEMonday 20 May 2024 Federal Coalition has no policy to address climate crisis Tomorrow marks two years since the federal Coalition lost the ‘Climate Election’ yet they still have no climate policy, no plan to reduce climate pollution and haven’t updated their 2030 emissions reduction target. “In 2022, Australians voted decisively for action on climate. They elected the most climate-friendly parliament in Australia’s history. The community showed we expect all political parties to adopt strong, science-based targets to cut climate pollution and uphold those enshrined in legislation,” said Deputy Director of Solutions for Climate Australia Sophia Walter. “But the…

  • Government Federal
  • 16/05/2024
  • 19:07
Electric Vehicle Council

Electric Vehicle Council congratulate government, parliament on New Vehicle Efficiency Standards becoming law

The Electric Vehicle Council has congratulated the Australian Parliament for passing New Vehicle Efficiency Standards into law today. EVC chief executive Behyad Jafari said the landmark decision represented a significant leap forward for Australia in its commitment to a cleaner, more sustainable future. “This is a historic day. After multiple attempts by different governments, Australia today finally joins the rest of the world,” said Electric Vehicle Council chief executive Behyad Jafari. “For many years now, we’ve campaigned for Australia to join the US and Europe by introducing vehicle efficiency standards so car makers are incentivised to offer their best and…

  • Environment, Government Federal
  • 16/05/2024
  • 18:35
Parents for Climate

New Vehicle Efficiency Standard: Parents breath a sigh of cleaner air

Thursday 16 May: Parents for Climate is excited to welcome improved standards to Australia’s cars – among the world's dirtiest. Nic Seton, CEO of Parents for Climate said: “This is a win for kids' health, clean air, and families who want cheaper-to-run cars. Now Australia can join the rest of the world in cleaning up our streets, instead of treating our kids’ lungs as air filters. “Parents choose and use cars to support their kids. Polling shows that the majority of parents want cars that are cheaper to run and pollute less. The New Vehicle Efficiency Standard is an important…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.