The Department of Industry, Tourism and Resources (DITR) yesterday admitted that export growth of elaborately transformed manufactures (ETM) has slumped to new lows.
ETM export growth figures for the last three financial years were as follows:
 |
2001-02 – Minus 0.5% |
|
2002-03 – Minus 7 % |
|
2003-04 – Minus 4% |
These negative figures illustrate the shrinkage of ETM exports. Each negative result is measured against the year before, compounding the damage to Australia’s export capability in this crucial manufacturing sector.
In contrast, under Labor policies in the 1990s, ETM’s experienced remarkable growth. For example the ETM export growth figure in 1996-97 was +9.3%, a legacy of the Labor Government’s innovation and export facilitation policies.
Far from hitting the panic button in relation to this trend of decline in Australia’s ETM exports, the Howard Government has failed to analyse this trend to date with a view to reversing it.
While the Government seems to be content to point the finger at general factors such as the appreciation of the Australian dollar for this decline, the shrinking proportion of ETMs within exported manufactured products points to a decline in overall ETM capability.
The admission supports studies by independent analysts such as the Centre for Strategic Economic Studies at the Victoria University of Technology. In a report to the Manufacturing Industry Consultative Council the Centre stated that:
Between 1990 and 1997 the most rapid growth in exports was in ETMs, which grew at an annual rate of 13.8% per annum…….Since 1997 the growth in ETM exports has slowed sharply increasing over the period 1997-2003 by only 1.8% per annum [average figures].
Labor calls on the Howard Government to stop ignoring this issue and urgently address the decline in ETM exports.
Contact: Taryn Langdon 0147 148 059 or 02 6277 3334
