What is Going On!

30 Aug 11

The sniping between both sides of the political divide about who is to blame keeps growing and what is the result, political bickering and no action.

Todays media reports contain the most inconsistent messages that the Gillard government is considering an inquiry into Manufacturing after meeting with union power brokers but at the same time media reports also suggest that the government has ruled out an inquiry on the basis that manufacturing is resilient enough to cope with the current headswinds that it is facing.

Ms Gillard and Industry Minister Kim Carr met with the Australia Industry Group (Ai Group) and the national secretaries of the Australian Workers Union and Australian Manufacturing Workers Union, Paul Howes and Dave Oliver, respectively, in Canberra on Monday.

Mr Oliver said the prime minister was considering an inquiry into manufacturing and that he was hoping for one similar to the car industry review of two years ago.

The mixed messages coming from the Gillard government about whether an inquiry will or will not take place is not helping manufacturing industry confidence with media reports this morning indicating that many industry participants are struggling to pay their bills and The Australian reports that business failure rates in the sector have increased by 60 per cent.

It begs the question of how can information such as this be ignored in the face of further job losses and the deeper divide in the 2 speed economy apparently strengthening. It is all well and good for the government to announce that is has to look at its own purchasing practices and pressure the resources sector to do the same, but is the assistance offered by the government, recently announced by Senator Kim Carr, enough to support the future of the manufacturing sector and thousands of jobs.