State Member for Euroa Steph Ryan is calling on the Victorian Government to establish a $1 billion fund to support Victorian manufacturers and help local industry grow and expand.
The Nationals have raised concerns that the Victorian Government has set purchasing policies which is prioritising cheap imports over locally made goods.
Ms Ryan visited National Paper Industries (NPI) in Broadford, where general manager David Buttle said the business was struggling with lockdowns.
“The lockdowns have had a massive impact on our business. It has taken the national sales team off the road,” he said.
“We sell to merchants and wholesalers and corporate sales doesn’t work remotely. Everything freezes because nobody buys anything unless they can see samples and people.
“We were looking at some funding for new machinery but we’re evaluating it now because of the lockdowns.
“At first it was a clear decision but being in lockdown for so long, we’re not sure how many customers we’ll have left by the end of it.
“We’re trying to evaluate whether our customers who want the product are going to survive because there's no prospect of getting out of lockdown for any length of time.”
Mr Buttle said he remained optimistic about the future of NPI and there was potential for more production if lockdowns ended.
“There is an interest in sustainability, which is what we do. We replace plastic products with recycled paper products,” he said.
“Everybody also wants locally made products, so we tick all the boxes. I have great optimism for the business.
“If we could only open up, this place will grow and employ more people.”
Ms Ryan said the Victorian Government needed to do more to support local manufacturing to support local jobs.
“Instead of buying cheaply produced product from overseas, the Victorian Government could use its buying power to help businesses like NPI grow and employ more local people,” she said.
“While paper is no longer produced at the site, NPI now provides a wide range of services and products to the packaging industry, including laminating, paper rewinding and sheeting.
“The Victorian Government uses many products that the business could supply, from laminated paper for advertising to cardboard lunch boxes and the tree guards used by water authorities, Parks Victoria and VicForests.
“I find it unforgiveable, for example, that the Andrews Labor Government is importing face masks from China instead of purchasing them locally from Shepparton-based manufacturer Med-Con.
“Victoria has lost more jobs than any other due to the pandemic and we need an urgent and bold plan to turn our fortunes around.
“Instead of just buying the cheapest product, Labor should be seeking to grow local manufacturing to help our region recover from lockdowns.
“A $1 billion fund would encourage businesses to bring manufacturing back to Victoria as well as supporting existing manufacturers to expand, innovate or invest in research and development.”
In a statement, the Victorian Government said in 2020 Health Services Victoria procured 5.8 million level three surgical masks from Med-Con, which was the maximum available at that time, and 160,000 level one surgical masks.
The Health Services Victoria stockpile has not been exhausted. When further supplies of surgical masks and other PPE are required, suppliers will be approached using the standard government procurement process.
The $60 million manufacturing and industry development fund is assisting Victorian manufacturers to expand their operations and implement new technologies.
The establishment of a $20 million Australian Medtech manufacturing centre in Melbourne will strengthen Victoria's capacity to produce vital medical equipment.
The government said it was further supporting innovation in advanced manufacturing and digital technologies through the $2 billion breakthrough Victoria fund which would create more than 15,000 jobs during the next decade.
A Victorian Government spokesperson said the government had invested more than $180 million in Victorian manufacturing since 2015, creating more than 7500 jobs and generating more than $1.9 billion in private investment.
“Victoria is the manufacturing state and we’re backing businesses to keep ahead of the pack because it means more jobs for Victorians,” the spokesperson said.
“We’ve supported local industry to build PPE manufacturing capability, including Med-Con, through direct purchases and support towards expanding their manufacturing capacity and capability.
“The government procured almost six million surgical face masks from Med-Con.”
Local business calling for a plan out of lockdown - Riverine Herald
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