SENATOR Kim Carr, Minister for Innovation, Industry, Science and Research, released the Review of the Australian Textile, Clothing and Footwear (TCF) Industries, saying it provided clear direction on how Australia can compete and succeed in today’s increasingly competitive global environment.
The review was conducted by Professor Roy Green, supported by an industry reference group, and received more than 80 submissions.
The report contains 15 broad ranging recommendations to encourage reform and rejuvenation of Australia’s TCF industries.
“TCF industries play an important role in Australia’s economy and society – but to remain viable and competitive in the international market place, the industries need to forge ahead with essential reforms,” Senator Carr said.
“The report demonstrates that we can be confident about the future of TCF industries, if the right policy decisions are made now.”
A key recommendation of the report is that industry assistance be focussed on building innovative capacity at the level of the enterprise and workplace rather than traditional structural adjustment.
It recommended that: a new TCF Innovation Assistance Package 2009-2015 with a budget of $250 million be introduced as part of a process of ‘mainstreaming’ the TCF industries into the broader policy framework;
assistance to the TCF industries should be available to a broader range of firms and organisations; and
scheduled tariff reductions to 2015 should be allowed to take their course.
“It is widely recognised that tariff protection is a blunt instrument for the promotion of innovative and competitive capability at the enterprise level,” Professor Green said.
“TCF industries provide jobs for over 48,000 Australian workers, generate exports worth $1.6 billion, and contribute $2.8 billion to our economy each year. Our task is to work with the industry to promote growth and overcome the challenges of a highly competitive environment,” Senator Carr said.
“The future of Australia’s TCF industries is underpinned by our high quality designers and manufacturers – and its promising future is evident in a wide range of great products.”
The Government is currently considering the report’s recommendations and will be responding to the many significant issues it raises in due course.
Professor Green said, “I am pleased that my report is now public and I encourage everyone with an interest in TCF and innovation policy to read it.
“It confirms that there are many challenges facing the TCF industries, but they have a promising future providing they deliver products that are differentiated from those of their competitors by their uniqueness, product quality and design and branding.”
He said that Australian businesses cannot compete with China on low-cost, commoditised items but they can develop new capabilities in innovation, supply chain management and ethical branding.
“I do think there is an important role for public policy but the policy approach should now shift focus from assistance for structural adjustment to building innovative capability at the level of the enterprise and workplace.
“In any case, it can have only a marginal impact in the context of large exchange-rate movements so it is clear that future policy should instead be based on well-designed industry assistance measures,” said Professor Green.
A copy of the report is available at www.innovation.gov.au/tcfreview
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