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What the Government’s cash injections mean for supply chain

In the lead up to the Australian Federal Budget, the Morrison Government is investing $1.5 billion in domestic manufacturing and $7.5 billion in transport infrastructure. How will support projects address the nation’s supply chain issues and opportunities?

The COVID-19 crisis has also highlighted the need to better understand and address our supply chain issues and opportunities.

“A $107.2 million Supply Chain Resilience Initiative will support projects that address an identified supply chain vulnerability,” Prime Minister Scott Morrison said in a statement on October 1.

“This is about incentivising industry to take advantage of opportunities to provide both domestic and global supply chains with critical products,” Minister for Industry, Science and Technology Karen Andrews said.

Ahead of the release of the highly anticipated Australian Federal Budget, the Morrison Government has identified priority areas of investment that will affect the nation’s supply chain industries.

How will the Modern Manufacturing Strategy boost supply chain?

Prime Minister Scott Morrison said around $1.5 billion in new funding will be invested over the next four years in the Modern Manufacturing Strategy to make Australian manufacturers more competitive, resilient and able to scale-up to take on the world.

“The COVID crisis opens a new chapter for Australian manufacturing as a revitalised source of high-wage jobs, valuable exports and national income,” he said.

“It will play to Australia’s strengths, improve collaboration and commercialisation, and create a sector that is modern, dynamic and highly skilled.”

The centrepiece of the Strategy is the $1.3 billion Modern Manufacturing Initiative (MMI), which will see the Government strategically invest in projects that help manufacturers to scale up and create jobs.

The MMI will support projects within six National Manufacturing Priorities which reflect Australia’s established competitive advantages or emerging areas of priority, including food and beverage and medical products.

This strategy builds on the work across Government to improve economic conditions for business, including streamlining regulation, cutting red tape and cutting input costs.

Will investment in national transport infrastructure provide better domestic links? 

“A $7.5 billion new investment in national transport infrastructure will boost the national economy, deliver safer roads and create thousands of jobs as part of the Federal Coalition’s COVID-19 economic recovery plan,” Prime Minister Scott Morrison said on Monday October 5.

He said Tuesday’s Federal Budget would deliver funding for infrastructure which supports the Government’s JobMaker plan and helps the nation recover from COVID-19.

“These projects will keep commuters safe on the road, get people home to their loved ones sooner and provide better transport links for urban and regional communities,” Prime Minister Scott Morrison said.

“Infrastructure helps to create jobs and to get people where they want to go sooner and safer and unlocks the potential of our regions,” Treasurer Josh Frydenberg said.

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