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200,000 jobs face the axe

AUSTRALIA could lose about 200,000 manufacturing jobs in the next 14 years, according to a leading economic forecaster.
It warned that without drastic action, the decline in the manufacturing sector would be terminal.

Together with an over-reliance on the mining boom, it would leave the nation open to economic shocks, the National Institute of Economic and Industry Research said.

Manufacturing's contribution to national output has slumped from 20 per cent in 1979-80 to just 12 per cent in the past financial year.

The institute said Australian manufacturing was also declining compared with the rest of the developed world.

"Based on present rates of growth in the economy, and decline in manufacturing, potential job losses of 200,000 (are possible) between now and 2020," it said in a report.

The research was commissioned by the Australian Manufacturing Workers Union to be released at its national conference today.

The report called for major policy changes to aid the sector, including investment allowances, research and development schemes, and export market development grants.

AMWU national secretary Doug Cameron said the report painted a bleak picture for manufacturing communities.

"This is no longer a policy area that can be ignored," he said.

"Putting all our hopes into the continued mining boom makes Australia extremely vulnerable."

But Industry Minister Ian Macfarlane questioned the research.

"The misleading trend with some of these reports is to take a very narrow definition of manufacturing, when in fact modern manufacturing actually takes in one of the greatest growth sectors in our economy - the services sector," he said.

"But I doubt this report takes the growth in that sector into account."

The union also released polling showing support for the manufacturing sector. The poll, of about 1000 voters in marginal seats, found 68 per cent of respondents believed the Federal Government had not done enough to promote manufacturing.

"The public do not believe that the flood of jobs and industries overseas is an inevitable part of living in a globalised economy," Mr Cameron said.

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