The Rudd Government has used national manufacturing week to outline its initiatives for the manufacturing industry, including for innovation and better environmental practices.

Federal Minister for Innovations, Industry, Innovation, Science and Research, Kim Carr hit out at the former government for failing in its job to develop an industry policy for manufacturing which is a vital sector of Australia’s economy.

Mr Carr said that during the Howard years the generally held view was that manufacturing was in terminal decline and that its ultimate disappearance was a matter of time. Furthermore, any attempt to strengthen the sector would delay the inevitable.

“Manufacturing employment has held up better than most people realise. It is now actually rising. The average number of manufacturing workers is now 1.12 million – 33,500 more than the average for the previous year.”

Mr Carr also dispelled another common myth: that Australia is now primarily a service economy that doesn't need manufacturing.

“That is not a view likely to be held by those million plus workers, their families and the communities that work and sustain the industry.

“Manufacturing jobs, exports, innovation and input demand would be difficult, if not impossible to replace.

“And this is not just about job numbers. It’s about the quality of those jobs. Manufacturing offers high skill, high wage employment.”

Mr Carr supports the AMWU’s view that manufacturing matters to the health of our economy as it drives demand across the economy including demand for services.

“If manufacturing disappeared, thousands of jobs in other sectors would disappear with it.

“This is an industry that should not be ignored by the government.”

The Rudd Government has committed $1.1 billion for innovation initiatives in the budget which includes $251 million to help small and medium enterprises access to new ideas and technologies.

“As far as we’re concerned, manufacturing is here to stay. We want to create an environment in which people have the confidence to invest their money, their skills and their careers in this vital industry.

“Prophecies of industry decline have a nasty way of becoming self fulfilling. Manufacturing is alive and well. It has helped make us what we are and it’s central to the Government’s vision of Australia’s future.”