The Hunter's existing energy and manufacturing infrastructure made it an ideal location to establish a renewable energy manufacturing zone, according to a new report on emerging post-COVID economic opportunities.
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The Australian Manufacturing Workers Union report Creating a Domestic Manufacturing Boom in a Post-COVID 19 Economy argues that a statutory body charged with managing regional transitions to renewable energy should be established as a priority.
It also highlights the role that TAFE would play in upskilling workers and establishing partnerships with local industry.
"Domestic manufacturing of renewables would also provide significant flow-on benefits to other domestic industries through the renewable supply chain," the report says.
The Hunter renewable energy manufacturing hub is among a raft of suggestions that the union has put forward to reinvigorate domestic manufacturing.
It argues the tend in recent decades to increasingly off-shore the manufacture of key infrastructure has been an exercise in 'long-term pain for short-term gain'
"Now, in a time of unprecedented crisis for our society and economy, we are reaping what they have sown," the report says.
The union has urged political parties to seize the opportunities presented by the post-COVID crisis to rebuild Australian manufacturing.
"Made in Australia means reshoring our manufacturing and supply chains so that we once again have the capacity to build things here," the report says.
"Not just everyday products and parts. Not just emergency and medical supplies like respirators and hand sanitiser that we desperately need for this crisis, but our public and private transport needs, our defence needs, our domestic rail and shipping needs, our infrastructure needs and our energy and food supply needs, both now and for the future."
The report's recognition of the Hunter potential is mirrored in the NSW Chief Scientist's report, Opportunities for prosperity in a decarbonised and resilient NSW, released this week, which identified the region as a suitable location for a hydrogen export hub.
In particular, the report highlighted that the Hunter's existing knowledge base in mining, energy, agriculture and medical research gave it a clear advantage in the field of clean energy production.
"[The Hunter] has a manufacturing industry that could be reinvigorated by increasing expansion of the local clean energy sector, the report said.
"When transitions are underway, measures to encourage local businesses from the impacted community to tender for supply contracts, can also lift activity and employment in the region. This can lead to a double or triple benefit, with the delivery of a local project (building, infrastructure, service etc), that creates local employment in its delivery, and that provides ongoing employment in its operation."
Engineer Phil Walters has seen the Hunter's manufacturing sector steadily decline.
"It's been a real slow decline from the moment I started in the industry but I think it has really picked up in the past 10 years," he said.
He believes a radical change in government procurement policies was the only hope to revitalise the local industry.
"There would have been 40 apprentices when I started, today there are four," he said.
"We need to take the peaks and troughs out of the industry; if you procure at a steady rate you could have a continuous build happening that would iron-out the peaks and troughs. It would provide suppliers with a longer range of certainty."
A recent Roy Morgan survey found 89 per cent of Australians believe Australia should be producing more products locally.
It found the key motivations to manufacture locally were to reduce Australia's reliance on other countries (38 per cent), create jobs (26 per cent), support Australian business and industry (26 per cent), a safeguard for vulnerable international supply chains (20 per cent) and to strengthen Australia's economy (16 per cent).
"Australia's over-reliance on imported products has been highlighted during the COVID-19 pandemic," Australian Made Chief Executive, Ben Lazzaro said. "This research indicates that Australians are placing priority on manufacturing self-sufficiency and job creation along with a renewed appetite to address the imbalance between locally made and imported products."
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