May 2005

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May 2005 June 2005

bullet31 May 2005 - ETM exports in serious decline
bullet24 May 2005 - ICT Small Businesses strike back against discrimination and red tape
bullet17 May 2005 - Banks profiteer from online bank fees
bullet17 May 2005 - Lack of Leadership on Promoting Australian Made
bullet17 May 2005 - Australian consumers vulnerable to copyright infringement actions
bullet11 May 2005 - Manufacturing Forgotten in the Budget
bullet9 May 2005 - Manufacturing Must Get Attention in the Budget
bullet5 May 2005 - Internet bank fees: unjustifiable and unfair
bullet3 May 2005 - Training Australians First: Budget should include completion bonus for apprenticeships in the ACT

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31 May 2005 - Media Release

ETM exports in serious decline

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:

bullet2001-02 – Minus 0.5%
bullet2002-03 – Minus 7 %
bullet2003-04 – 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

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24 May 2005 - Media Release

ICT Small Businesses strike back against discrimination and red tape

All of the small business representatives on a government committee set up to remove barriers to government contracts for small IT businesses have broken ranks and delivered an unprecedented independent report to Minister for IT, Senator Coonan.

This independent report differs dramatically from the sanitised report that is the ‘official’ conclusion of the ICT SME Joint Industry Government Working Party and details the discrimination experienced by Australian small ICT businesses shut out of government contracts because of red tape, onerous and unreasonable insurance requirements and tenders that are deliberately designed to suit only very large ICT firms.

Small businesses drive 55% of revenues across the whole IT market and yet in the federal government, they barely reach 20%, even in the most favourable analysis.

Since 1996, the Howard Government has prevented small Australian IT companies competing on a level playing field in federal government purchasing, first through their IT Outsourcing Initiative which made contracts impossibly large and then by removing any obligation on agencies and departments to ensure small and/or local business involvement.

It is not surprising in these circumstances that since the Howard Government came to power, the ICT trade deficit has ballooned, highlighting the weak state of ICT exports, particularly manufacturing, and massive increases in ICT imports.

The discrimination against small business in federal government IT purchasing has contributed to this disturbing trend because for small business, a government contract represents an important export credential through a credible ‘reference site’. In other words, small business must be able to compete at home if they are to increase their exports and expand their size and capability.

Labor calls on the Howard Government to adopt the recommendations in this independent report because Australian small businesses are competitive on cost, quality and innovation, provided the red tape and discrimination is removed to allow them to compete.

Contact: Taryn Langdon 0417 148 059 or 02 6277 3334

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17 May 2005 - Media Release

Banks profiteer from online bank fees

The Howard Government has finally followed Labor's lead in calls for consumers to resist online bank fees, and have acknowledged that internet bank fees are bad news for consumers.

Online banking fees are likely to be far higher than the actual cost of the transaction. The fees therefore reflect pure profiteering on the part of the banks rather than recouping the cost of the service.

Labor voiced concern over increases in net banking fees on 5 May in response to Commonwealth Bank's recent internet banking fee hikes and encouraged consumers to switch from banks charging unfair fees for services free in the past.

Labor's objection to the fees came from the fact that banks have urged millions of Australian customers to utilise online services so that they can make savings in reducing branch services. To then impose a charge on customers of up to 50 cents per online transaction is unfair and unlikely to reflect the actual cost of a transaction.

Major banks are already making soaring profits, yet banking is becoming more and more expensive for the consumer. Overall, bank fees collected from households increased from $1.2 billion in 1997 to $3 billion by 2003 and that figure continues to rise.

Contact: Taryn Langdon 0417 148 059 or 02 6277 3334

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17 May 2005 - Media Release

Lack of Leadership on Promoting Australian Made

The trade deficit continues to balloon and the state of Australian manufacturing continues to decline. The Howard Government has not done enough to counter this issue by encouraging Australian consumers to buy Australian made.

The Senate Inquiry into Possible Links Between Household Debt, Demand for Imported Goods and Australia’s Current Account Deficit heard yesterday that Australian consumer debt has blown out to $230 billion. This figure is an exponential increase from 1996 when it was $60 billion. The average household debt has risen from $40,029 to $71,243 over the same period.

Household debt today represents 140% of disposable income, which means it will take every cent an individual earns over one year and three months to pay off the average debt.

What are Australians spending all this extra borrowed money on? The inquiry heard that consumers have driven up the level of imported goods which has risen by 133.5% over the last 8 years. Household income has not risen anywhere near that amount hence the rise in debt.

In addition the inquiry heard that the expenditure on imports has shifted over time towards consumer items over goods necessary to fuel capital growth.

This is an unsustainable position. The first and most obvious step the Government must take to reduce the trade deficit is to encourage Australians to purchase locally produced goods over imported goods.

The lack of leadership by the Howard Government on both promoting Australian manufactured products and infrastructure needs has directly contributed to the unsustainable growth in the trade deficit.

Contact: Taryn Langdon - 0417 148 059 or 02 6277 3334

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17 May 2005 - Media Release

Australian consumers vulnerable to copyright infringement actions

Australian music lovers may face legal action from copyright owners for downloading their music on increasingly popular digital music players.

Australian University intellectual property expert Dr Matthew Rimmer said:

"In the US, the courts have recognised that the broad defence of fair use allows consumers to record and 'time-shift' television programs for personal use, and 'space-shift' their record collection to MP3 files. Interestingly, this precedent has not yet been established in the Australian court system."

With the implementation of the Australia-US Free trade Agreement handing more power to the copyright owners at the expense of consumers, this problem is looming large.

Labor Senators on the US Free Trade Agreement Senate Committee last year recommended an investigation into expanding copyright exceptions along US-style 'fair use' principles.

Acting Shadow Attorney-General Joe Ludwig welcomed the Government’s recently announced review into copyright exceptions. Labor calls on the Howard Government to ensure it is completed as soon as possible, to give consumers certainty about their legal position.

'Fair use' exceptions allow American consumers to ‘space shift’ their music collection onto new digital devices in MP3 format. If Australian consumers do the same thing, they risk infringing copyright.

If the aim of the AUSTFTA was, as the Howard Government claims, to align copyright law between Australia and the US, then it makes sense for the Government to fast track consideration of consumer-oriented 'fair use' rights that would allow Australians to listen to their music however they like.

Contact: Taryn Langdon 0417 148 059 or 02 6277 3334

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11 May 2005 - Media Release

Manufacturing Forgotten in the Budget

The Howard Government has squandered an ideal opportunity to strengthen Australian manufacturing to drive future productivity gains and exports.

The manufacturing sector urgently needs support to boost skills training, encourage innovation, modernise transport infrastructure and build export markets. The Government has not adequately addressed any of these pressing priorities in the budget.

Most disappointing of all the Government has ignored calls from the Labor Party, unions and industry groups for the introduction of a national manufacturing policy.

The Howard Government continues to pursue band-aid measures to fix our deepening skills shortage. They have imported 178,000 extra skilled migrants since 1997 but have turned away more than 270,000 Australians from TAFEs since 1998.

The Labor Party wants to train Australians to solve the country’s skills crisis and believes apprentices should receive incentives to complete their training. At present 40 per cent of Australian apprentices do not complete their apprenticeships. The Howard Government’s much vaunted Technical Colleges, if they commence at all, will not produce their first tradesperson until 2010.

The Government has announced nothing new to solve the transport infrastructure problems that are holding back Australian manufacturing.

Even after strong urging from the Australian Industry Group and the Australia China Business Council the Government, has failed to heed the call for a national manufacturing policy.

This budget represents a squandered opportunity. The Government’s disgraceful neglect shows their contempt for manufacturing workers, businesses and the economy as a whole.

Contact: Taryn Langdon 0417 148 059 or 02 6277 3334

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9 May 2005 - Media Release

Manufacturing Must Get Attention in the Budget

Now is the time to invest in essential skills, innovation and freight infrastructure for Australian manufacturing.

Australian manufacturing is ailing under this Government. Between 2000 and 2004, 50,000 jobs have disappeared in manufacturing. Recent figures have shown that manufacturing growth continues to decline, now reaching record lows.

The trend in manufacturing exports is also on the way down. From being a main driver of export growth under Labor in the 1990s, manufacturing is now struggling to build export markets. Export volumes in the early 1990s rose by 12.5 per cent a year. Since 2000 growth in manufactured exports has slowed to 3.8 per cent a year.

Between 2001 and 2003 the value of our manufactured exports fell by more than $7.8 billion. The share of Australian manufactured goods sold overseas has fallen from 26 percent to 21 percent.

Labor calls on the Prime Minister to look beyond the short term for once and to invest in a future after he has left Parliament. The Howard Government must seize the opportunity to assist the development of Australian manufacturing across the board.

Contact: Jake Winter - 0418 488 295 or 02 6277 3334

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5 May 2005 - Media Release

Internet bank fees: unjustifiable and unfair

I support the Australian Consumer Association’s condemnation of Australia’s major banks who are hitting customers with new internet banking fees.

It is safe to assume that many customers took up internet banking because there were no fees.

Banks have urged millions of Australian customers to utilise online services so that they can make savings in reducing branch services. To now impose a charge on customers of up to 50 cents per online transaction is unfair and unlikely to reflect the actual cost of a transaction.

Major banks are making soaring profits, yet banking is becoming more and more expensive for the consumer. Bank fees collected from households increased from $1.2 billion in 1997 to $3 billion by 2003 and that figure continues to rise.

Not all banks are capitalising on the internet banking fee. Angry consumers should ensure that they are not caught-out by new internet banking fees, by voting with their feet and snubbing banks charging for services that have been free in the past.

Senator Lundy will be available for comment:

12:45pm today (5 May 2005)
outside the Senate Entrance
Parliament House.

Contact: Taryn Langdon 0417 148 059 or 02 6277 3334

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3 May 2005 - Media Release

Training Australians First: Budget should include completion bonus for apprenticeships in the ACT

The Howard Government should introduce a $2,000 Trade Completion Bonus for Canberra’s traditional apprentices in the upcoming Federal Budget.

A Trade Completion Bonus is something the Howard Government can do immediately to help businesses in the ACT and surrounding region to get the skilled workers they need.

Skill shortages have ravaged ACT industries with traditional trades crying out for skilled workers from boiler makers, fitters, welders and motor mechanics to hairdressers, bakers and chefs.

The deficit of skilled tradespeople in key areas is directly affecting small and large business in the ACT. Businesses are just not able to meet their demand with the tradespeople they have. 

More traditional apprentices in the ACT must complete their training if we are to fix local skill shortages.

Around Australia a staggering 40 per cent of people who commence a New Apprenticeship do not finish. 

This could mean that in the ACT, of the 1000 people who commence an apprenticeship in the trades each year, around 400 are dropping out.

Under Labor’s proposal, traditional apprentices in the trades in the ACT would receive a $1,000 payment half way through their training and a further $1,000 payment at the completion of their apprenticeship.

A Trade Completion Bonus should aim to lift completion rates in the ACT from around 60 per cent to 80 per cent delivering more trained apprentices for Canberra’s workplaces. 

Apprentices eligible for the Trade Completion Bonus could include:

bulletGeneral & Off-site Construction 
bulletAutomotive Service and Repair 
bulletAutomotive Manufacturing 
bulletMetals and Engineering
bulletElectrotechnology
bulletBaking
bulletHairdressing
bulletTransmission and Distribution 
bulletCommercial Cookery

The Howard Government’s response to the skills crisis has been to over-rely on an imported skills quick fix.

Labor’s position is clear: train Australians first and train Australians now.

Contact: Taryn Langdon 0417 148 059 or 02 6277 3334

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