The Coalition’s innovation policy released today is proof of Tony Abbott’s lack of economic judgement, claims the Innovation Minister, Senator Kim Carr.
“The Coalition policy on innovation, industry, science and research is lightweight and confused,” he said.
Senator Carr said that of the fifteen measures listed in the Coalition policy:
• One is a huge cop-out – retaining the existing R&D Tax Concession for now, but conceding the need to make improvements along the lines Labor has already proposed, which they have stalled in the Senate.
• One is a reckless cut – halving support for the highly successful Enterprise Connect and charging small and medium businesses for its services.
• More reviews – some of which simply duplicate work already in progress.
• Three just parrot Federal Labor measures – mandatory vehicle emission standards, the charters of research freedom Labor introduced in 2008, and their food and grocery agenda.
• One is predicated on a complete misunderstanding of how Labor’s $406 million TCF Innovation Package works.
“Federal Labor has increased support for research and innovation by 34 per cent since 2007,” he said.
“We have put universities on a sustainable footing by improving indexation and funding for the indirect costs of research. Nobody knows whether the Coalition will maintain this support or slash it as they did when they were last elected, in 1996.
“By opposing the R&D Tax Credit, the Coalition has denied Australian businesses improved assistance and greater access to cash refunds.
“Now they admit they will consider introducing a similar credit themselves if they ever build up the courage.
“In the meantime, the Coalition has chosen to stick with a system that Medicines Australia has labelled not only as ‘outdated, unpredictable and overly complicated’ – but also as internationally uncompetitive.
“The Coalition has not put forward a single idea to strengthen Australia’s venture capital market. It has simply promised to duplicate two reviews that are expected to report before the end of the year anyway.
“The Gillard Labor Government provides free small businesses services through Enterprise Connect, the business.gov.au website, the Small Business Support Line, and small business advisory services located in suburban, rural and regional Australia. The Coalition says it will make Australian businesses pay for these services.
“The Global Financial Crisis hit Australian manufacturing hard, but the Federal Labor Government’s stimulus strategy reduced the impact, saving jobs in the sector. Tony Abbot and the Coalition opposed Federal Labor’s stimulus.
“Mr Abbott and the Coalition have shown yet again that they have no judgement and can’t be trusted to manage the Australian economy.”