The Federal Government’s response to concerns about the lack of Australian-made content in projects benefiting from the Government funded National Rental Affordability Scheme (NRAS) is extremely disappointing, says the Construction, Forestry, Mining and Energy Union.
“Australian workers whose jobs are under threat have been let down,” CFMEU National Secretary Michael O’Connor said.
“Instead of the Government supporting local manufacturing workers by requiring the use of Australian building materials, their lack of action will see jobs go offshore.”
In February, the CFMEU held a demonstration at the proposed site for the University of Tasmania’s NRAS-supported student accommodation following allegations that the project would use imported pre-fabricated materials.
Following that protest the union wrote to the Minister responsible for the NRAS, Mark Butler, and requested Government intervention.
Mr O’Connor believes that the Government is demonstrating a lack of understanding about the importance of manufacturing jobs to the economy and the community.
“Last week’s release of application guidelines for 1,000 ‘shovel ready’ incentives to be completed by June 2014 under the scheme reflects the Minister’s less than robust response to the increasing decimation of manufacturing jobs arising from the high Australian dollar,” he said.
“These guidelines include a fact sheet saying that local content will not be mandated. This is despite the fact that taxpayers will be funding the scheme to the tune of $700 million over the next decade.”
“In stark contrast to the situation under the NRAS, both the EU and the US mandate local content use whenever companies receive tax incentives and credits from the Government.”
“The opportunity for the Government to step in and specify both mandated minimum local content and the full, fair and reasonable participation of Australian industry in the hundreds of NRAS projects yet to enter the construction phase is still strong. All that is needed is the will. Without this — make no mistake about it — jobs will be lost,” concluded Mr O’Connor.
