WHILE most readers would have thought the manufacturing industry failed to get a mention in Treasurer Swan’s first budget on Tuesday, there were a few minor references most would have missed in the small print. Following are edited versions of the relevant press releases I received from industry minister, Senator Kim Carr’s office.
Green car innovation fund
The Rudd Labor Government will work in partnership with local car and component manufacturers to help develop and build more fuel-efficient vehicles.
The road transport sector is a significant contributor to the nation's greenhouse gas emissions and the Government is determined to improve the fuel-efficiency and greenhouse performance of Australian-made vehicles.
Consumers are lining up to drive greener, cleaner cars, and this initiative will help the local industry deliver new-generation technology, components and vehicles.
A key element of the Government's strategy is the $500m Green Car Innovation Fund, which will operate over five years from 2011.
Under this initiative, industry will be asked to match the Government's contribution on at least a three-to-one dollar basis, generating at least $2bn in investment.
The Fund will encourage the Australian automotive industry to develop and manufacture low-emission vehicles so that we can meet the challenge of climate change while maintaining critical automotive industry jobs.
This initiative will ensure that Australia plays a leading role in the global development and application of green car technology.
The impacts of climate change and of changing consumer vehicle preferences are a key focus of the current comprehensive review of Australia's automotive industry.
The review will inform the implementation of the Green Car Innovation Fund, with its final report due to be completed by 31 July 2008.
Re-tooling Australian manufacturers to tackle climate change
The Rudd Labor Government will provide $75m for the Re-tooling for Climate Change competitive grants program as part of the Government's Clean Business Australia initiative.
The program will complement other measures by supporting Australian manufacturers to improve their production processes, reduce their energy use and cut carbon emissions.
Australian small and medium-sized manufacturers will be able to apply for grants from $10,000 to $500,000 to support initiatives such as improving the energy-efficiency of their operations; investing in energy-efficient manufacturing tools; improving insulation and recovering waste heat; investing in small-scale cogeneration plants that capture waste energy and use it to produce electricity on site; and cutting water wastage, including through stormwater capture and improving water recycling.
Small and medium-sized manufacturers will also be able to access expert advice on how to improve their energy-and water-efficiency through the Rudd Government's $100m national network of Manufacturing Centres – part of the Enterprise Connect initiative.
Larger manufacturing companies will also be able to apply for grants under the Re-tooling for Climate Change initiative with funding to be considered on a case by case basis.
Re-tooling for Climate Change is part of the Clean Business Australia initiative – a $240m partnership between Government and business to deliver energy-and water-efficient projects with a focus on productivity and innovation.
Innovation program to help make Australia climate ready
The Rudd Labor Government today delivered funding of $75m for the Climate Ready competitive grants program as part of the Clean Business Australia election commitment.
Climate Ready will encourage Australian businesses to develop and commercialise products, processes and services that save energy and water, reduce pollution and use waste products in innovative ways.
A huge global market is developing in clean, green technology. Australian industry has the creativity and drive to deliver to world markets in this area.
Innovation supported by the Climate Ready program could include new technologies for water recycling, waste recovery or small-scale renewable energy; the development of green building materials to make homes more energy-efficient and more comfortable; and innovations to reduce the energy used by appliances, cutting emissions and household power bills.
Grants will be provided on a dollar-for-dollar basis, matching company spending on research and development, proof-of-concept and pre-commercialisation activities to develop solutions to climate change challenges. Funding will commence for the program in July 2008.
Final details of the program will be developed in consultation with stakeholders.
Climate Ready is part of the Clean Business Australia initiative – a $240 million partnership between Government and industry to deliver energy- and-water-efficient projects with a focus on productivity and innovation. Other programs under Clean Business Australia are the Green Building Fund and Re-tooling for Climate Change.
More information on all three programs can be found at www.ausindustry.gov.au
Streamlined programs
The Rudd Labor Government has outlined a range of savings measures in tonight's Budget which demonstrate fiscal responsibility and a clear commitment to modernising Government spending.
The Government is undertaking a root and branch rethink of the nation's innovation system through the review of the National Innovation System which, along with the Government's white paper response, will provide a roadmap for the next decade.
The Rudd Government is determined to get the policy settings and programs for innovation right and part of that is making tough decisions where necessary about spending priorities.
Savings have been applied to the Australian Nuclear Science and Technology Organisation (ANSTO) and Commonwealth Scientific and Industrial Research Organisation (CSIRO). These measures will result in savings of $47m over four years.
Funding that is no longer required by applicants of the Pharmaceuticals Partnerships Program will also form part of the savings plan.
The Government is establishing a network of Enterprise Connect centres, which will replace the flawed Australian Industry Productivity Centres (AIPC), and the Budget reflects this by formally ceasing AIPC. In addition, the Budget reflects Federal Labor's election commitment to cease the current National Nanotechnology Strategy from 1 July 2009. These measures will realise combined savings of $169m over five years.
To reduce duplication in policy and services, the Government will streamline its investment attraction and trade promotion capabilities. The functions of Invest Australia will be folded into Austrade, aligning inward and outward investment functions in the same organisation.
Further, a streamlined Global Opportunities program will be transferred to Austrade. As a result, Austrade will deliver a targeted enhanced set of tools to help connect Australian firms to global supply chains. These measures will result in savings of $147m over five years.
The Intermediary Access Program, announced by the previous Government in the 2007/08 Budget but not yet implemented, will not proceed. Instead, the Government will evaluate the pilot program, which is scheduled to conclude on 30 June 2008, and will consider appropriate support for intermediary services as part of a streamlined national innovation system.
The Howard Government's Commercial Ready program, including the Renewable Energy Development Initiative, closed to new grants from 28 April 2008, allowing $160m to be used to offset the cost of the Federal Labor Government's Clean Business Australia initiatives, and providing savings of $547m over four years. This will provide the Government with the opportunity to build better support for business research and development, pending the outcomes of the National Innovation System Review.