11 October 2011
Producers up the pressure
The Australian Financial Review
Call it the rise and rise of the manufacturing sector – at least in lobbying the government.
The Business Council of Australia (BCA), Australian Industry Group (AI Group) and others are too “broad church” to hammer home the specific concerns of manufacturers, who see themselves as at the pointy end of global competitive pressures resulting from a stronger dollar, the carbon tax, higher costs and an inflexible industrial relations system.
So some of Australia’s biggest manufacturers who are members of the other business groups – including Amcor, BlueScope Steel, CSR, Capral and Incitec Pivot – decided to form a new group, Manufacturing Australia.
The creation of the group is not a slight on the performance of other business groups, new executive chairman Dick Warburton insists, but allows a more specific focus.
“It is just that this manufacturing group [of companies] thought it needed a more specific focus. It was not a clear enough focus from AI Group, BCA and [the Australian Chamber of Commerce and Industry], which are good but a broad church,” he said.
The chief executives of the manufacturers have been meeting regularly over concerns such as the impact of the carbon pricing scheme.
They decided to form the new group a month ago, and approached Dick Warburton, who has decades of experience at the senior levels of a number of companies including manufacturers and has also been involved in running issues with governments such as tax reform.
His is chairman of the government’s Board of Taxation, which advises the Tax Office on tax issues and business.
A former Reserve Bank Board member, Mr Warburton is chairman of Westfield Retail Trust, Magellan Flagship Fund and Citigroup and has been a director at Tabcorp, Southcorp and Nufarm.
Now, after last week’s government jobs forum highlighted some of the issues faced by manufacturers, Mr Warburton says he hopes the government will continue to consult the group.
“Prior to the forum manufacturing had been on the back blocks for the government and the summit pushed it to the fore. I hope we continue that consultation that has sadly been missing with this government,” he said.