The Victorian Liberal Nationals Coalition Plan For Stronger Industry and More Jobs

THE LIBERAL NATIONALS COALITION PLAN FOR INDUSTRY AND EMPLOYMENT GROWTH
A Liberal Nationals Coalition Government will work collaboratively with industry to drive improved efficiencies and competitiveness. This will create jobs and opportunities for all Victorians via a comprehensive program of initiatives to strengthen industries across country and metropolitan Victoria. After 11 years Labor has failed to deliver across a range of different industry sectors. Productivity has become heavily dependent on continued population growth, leaving the economy vulnerable to fluctuations in immigration, external factors and demand. Victorias industries are seeking change. Labors industry formula has led them nowhere. Australia has prospered under sound national economic conditions for most of the past decade. This has led to complacency and a culture of mediocrity under poor Labor stewardship in Victoria. It has neglected key industry sectors and failed to develop economic growth and employment opportunities. Industry requires certainty, well-directed facilitation and investment incentives from government. It requires broader productivity growth that takes advantage of Victorias competitive strengths. It requires a government that makes the effort to minimise cost pressures by controlling taxes and utility price rises and at the same time cutting waste. It is time for industry to reconnect with a government that can get things done, that has a vision for this state and shares industrys passion. A Liberal Nationals Coalition Government will provide the support and the necessary development opportunities to deliver and return Victoria to its position as the leading industrial state in this country. The Victorian Liberal Nationals Coalitions plan for bolstering industry and creating employment growth embodies foresight and deliverables across the whole of government, including a range of key initiatives backed by expenditure of $11.25 million outlined in this policy. It includes:

Rebuilding the export sector by boosting funding for Victorian enterprises to undertake or increase their export activities.

Rebuilding the local manufacturing sector, starting with majority local procurement in expanding the suburban train network by 20 per cent. Convening an Industry Roundtable for a whole-of-government and wholeof-industry approach to high-level planning for state infrastructure. Overhauling industry and grants assistance funding to provide strategic direction and maximise jobs growth and commercial opportunities. Implementing an Integrated Transport Solutions Plan as a blueprint to improve Victorias freight and logistics transport networks. Establishing a Textile Clothing and Footwear (TCF) Precinct and a TCF National Innovation Centre. Pushing the Federal Government to ensure that Avalon is developed as Victorias second, complementary international airport. Sustaining and underpinning the existing Information and Communication Technology (ICT) sector via a new ICT Plan. Reviewing and removing all impediments to trade and commerce across state boundaries. Establishing KPIs and benchmarks for government department procurement performance. Establishing and supporting VicMade and VicGrown marketing strategies and campaigns to promote Victorian-made and produce products and services. Delivering on commitments to give Victorian business full, fair and reasonable opportunities in public and private tenders.

These and other Liberal Nationals Coalition initiatives are covered in greater detail throughout this document. Rebuilding manufacturing A major focus is the Liberal Nationals Coalition plan to revitalise Victorias manufacturing industry and restore jobs to the sector.

The economic base of the Victorian economy requires urgent repair and significant broadening. Rejuvenating our manufacturing sector is vital. No longer can we simply rely on the building of new homes and population growth as the principal drivers of growth. Victorias manufacturers are innovative, quality-driven and committed to their industries. They need to be supported as the employers of thousands of Victorians and outstanding contributors to the states economy. Our $1.4 billion long term commitment to buy 40 new six-carriage suburban trains will not only provide better public transport, but will create hundreds of jobs by specifying as part of the tender process that these trains will be largely manufactured in Victoria. This will have huge flow-on benefits for local suppliers from manufacturing trains in Victoria. Victorian manufacturers and sub-contractors will have a key role in providing these trains. In consultation with leading industry groups, a Liberal Nationals Coalition Government will work with the manufacturing sector to ensure assistance is properly targeted in order to achieve the best-possible outcomes and restore Victorias position as the nations premier manufacturing state. Manufacturing businesses will have greater access to new research and technologies, expanded markets and future opportunities through enhanced relationships with tertiary and R&D institutions and industry focused government assistance. Export Industries Export industries are vital for Victorias economic growth, providing income and jobs for our community. In both the goods and services sectors, Victorian firms have proven that they have the ability to compete on the world stage and win, delivering real economic benefits to our cities and regions. However, during the past 11 years of Labor Government Victorias export performance has fallen behind the rest of the nation. When Labor came to office in 1999 our share of national merchandise exports was 20 per cent. By 2009, that share had plummeted to just nine per cent. Victorias deteriorating export performance demonstrates there is no substitute for hard work, leadership and energy.

A Victorian Liberal Nationals Government will work with industry to build on our strengths and competitive advantages to re-energise our export performance. We will implement an export strategy to restore our export sector as a prime generator of growth, wealth, and jobs that will help to secure Victorias economic future. Information and Communication Technology (ICT) The ongoing development of the ICT sector is of vital importance to the Victorian economy. As well as making a direct contribution to growth and employment, the sector plays a crucial role in promoting productivity and innovation in industry and government. In the 1990s the previous government established Multimedia Victoria to ensure that Victoria led the way in ICT. The development of the ICT industry was encouraged and supported at the highest levels of government. The ICT industry in Victoria is estimated to annually generate more than $27 billion in revenue. It contributes almost $3 billion to Victorian exports and employs some 87,000 people. Unlike Victorias traditional agricultural and manufacturing industries, the ICT industry is footloose. ICT companies can exit Victoria with ease when the local environment is no longer conducive to their continued success. Consequently, the Liberal Nationals Coalition believes it offers the strong leadership needed to ensure the continued presence and growth of Victorias ICT sector.

Ted Baillieu Leader Victorian Liberal Nationals Coalition

Richard Dalla-Riva Shadow Minister for Industry and State Development Ryan Smith Shadow Minister for Manufacturing Michael OBrien Shadow Minister for Exports and Trade Gordon Rich-Phillips Shadow Minister for Information and Communication Technology

LABORS FAILINGS
During the past 11 years many key sectors of Victorian industry have suffered steady erosion of their competitive position as taxes under Labor have risen to record levels, as greater and greater regulatory burdens have been imposed by Labor, and as costs have continued to rise strongly particularly those under the direct control of the State Government such as gas, electricity and water. Labor has failed to offer the leadership and direction to help address these pressures and restore Victorias position as the premier industrial state in Australia. Under the Labor Government the Industry and Trade portfolios have been used to park a series of incompetent and uninterested Ministers. The Labor Government has failed to achieve practical outcomes at COAG to streamline the interstate trade regulations that hurt Victorian industry and exporters. The Labor Government does not support and promote Victorian businesses. It is more interested in producing slick advertising campaigns. In fact Labor has spent more on its public advertising campaigns in each of the past 11 years than it has provided in direct grants assistance to industry. For the past 11 years we have seen an influx of imports without any clear strategy from Labor to support Victorian business. Labor has also taken the financial services sector for granted, expecting growth without government support and direction. For almost a century, Victoria has led Australia as a manufacturing powerhouse, exporting products to the world and creating the bedrock of our states jobs. But in the past 11 years under a complacent and negligent Labor Government, Victorias manufacturing industry has been in constant decline. Victorias share of the national manufacturing industry has sharply fallen from 31.3 per cent in 2000 to 27.5 per cent in 2009.

Manufacturing employment in Victoria has declined as a share of total state employment and relative to manufacturing in Australia as a whole. Victoria has lost 58,000 manufacturing jobs since 2000, more than 40 per cent of the 138,000 manufacturing jobs lost in Australia. During the past 11 years, in spite of more than $350 billion in revenue, Labor has failed to invest in developing a long-term future for the manufacturing sector. In 2001 the Labor Government signed the Australian Industry Participation National Framework to provide full, fair and reasonable opportunity for Australian industry to participate and compete in public and private sector activity a framework supported by industry groups. Since the framework was signed, Labor has failed to implement its principles and develop a competitive environment so that local manufacturers have equal access to private and public tenders for manufacturing work. Labors inaction has caused local manufacturers miss out on millions of dollars in tenders that went to international firms. Victorian jobs have gone overseas. The current Victorian Industry Participation Policy (VIPP) is not creating a full, fair and reasonable opportunity for local manufacturers. Under Labor, local manufacturers are disadvantaged. They are not aware of tender opportunities in the public and private sectors, are given unrealistic lead-up times to quote for tenders, and are locked out of tenders through foreign accreditation standards and bundled tenders too large for small and medium-sized companies to bid for Labors procurement policies have lacked focus on local content, or have not supported local suppliers. In recent years, for example, the Victorian and NSW Governments have placed orders for more than $3 billion worth of passenger rail rolling stock with suppliers in China, Poland and Italy. Previous whole-of-life government projects have exceeded 80 per cent local content but now Labor has lowered the target for rolling stock projects to 40 per cent on a whole-of-life basis, including servicing and maintenance within that requirement. This approach to whole-of-life content has been widely condemned by the industry.

Labor has treated the exports and trade portfolio like a poor relation, constantly shuffling it between ministers and taking no long-term strategic view. This neglect has been damaging to Victorias export performance and competitiveness. Under Labor, Victorias performance in goods exports has slumped compared with the rest of the country. In 1999, Victorias goods exports totalled $17.4 billion out of the national total of $86.9 billion a 20 per cent share. But after a decade of Labor neglect, by 2009 Victorias goods exports totalled $18.1 billion out of a national total of $196.1 billion a much-reduced nine per cent share. In the latest 12-month period this has fallen again to a new record low of 8.7 per cent. This cannot be explained away by the performance of other states resources exports. Since 1999 NSW has increased the value of goods exported by 81 per cent, South Australia by 47 per cent and Tasmania by 50 per cent. By contrast, Victorias increase was just eight per cent. Victoria now exports less in 2010 than it did in 2000. Labors mismanaged regulation of the education sector and its failure to ensure a safe community has damaged Victorias reputation as a safe place to study. This has triggered a steep fall in student enrolments that will cause large falls in export income from education services over the next few years, costing thousands of jobs.

In the past 11 years Labors management of the ICT portfolio has been a shambles. One of Labors first actions after winning government was to abolish the information technology (multimedia) portfolio, leaving the ICT industry unrepresented for the next three years and losing much of the momentum built by the previous government. Since 2002 there have been no fewer than four separate Ministers for ICT, an average of one every two years. This revolving-door ministry has undermined the usefulness and effectiveness of the Victorian ICT Industry Plan and other efforts to develop the ICT industry. Initially the Labor Government focused its efforts on delivering ICT projects within government, leaving industry promotion and development largely neglected. Labor Projects such as the Mobile Data Network, TPAMS, and Project Rosetta have run behind schedule and over budget.

In 2006, responsibility for government ICT projects was dropped from the ICT portfolio and it is now vested in the Minister for Finance. Departmental responsibility for the ICT portfolio, or elements of it, have bounced between the Departments of Premier and Cabinet, Innovation, Industry and Regional Development, Treasury and Finance and now back to Innovation, Industry and Regional Development. In July 2003 the Labor Government announced it would spend $33 million creating the Office of the Chief Information Officer (CIO) in the Department of Premier and Cabinet. It took Labor six months to appoint the first CIO, who then resigned within a year. The office remained vacant for a further five months before the second CIO was appointed in May 2005. After ongoing confusion as to the role of the CIO, the office was abandoned in late 2006 after tens of millions of dollars had been wasted. In the six years to 2008 Victorian government departments have spent more than $2 billion on new ICT projects. Most of these projects such as Rosetta, HealthSMART and myki have been characterised by major delays and cost overruns. They have ultimately failed to deliver their intended outcomes. Labor has mismanaged nearly every ICT project under its aegis. It has failed to put in place adequate whole-of-government leadership with the ICT procurement and management expertise to assist agencies to commission and manage major projects effectively.

UNDER A LIBERAL NATIONALS COALITION GOVERNMENT:

INTEGRATED TRANSPORT SOLUTIONS PLAN A Liberal Nationals Coalition Government will: Implement an Integrated Transport Solutions Plan, focusing on reductions to rail, road and ports logistical bottlenecks caused by deficient infrastructure planning by the Labor Government to provide Victorian industry and businesses with a competitive advantage over interstate competitors. Identify and commit funding to removing road/rail/port bottlenecks in order to drive down distribution and transport costs to assist Victorian industries and businesses.

The Liberal Nationals Coalition will cut the cost of doing business in Victoria, create new jobs and attract new investment by improving Victorias transport networks. The Integrated Transport Solutions Plan will identify and evaluate rail, road and ports logistical bottlenecks caused by Labors deficient infrastructure planning and develop a strategy to eliminate them. Drawing on the expertise of transport providers, local government, port operators, business and other stakeholders will be a key part of the process. This integrated approach to Victorias transport infrastructure will deal with immediate needs and also anticipate the needs of Victorias growing population. Victorian industry is currently hampered by higher logistical costs due to Melbournes traffic gridlock and unacceptable delays and congestion around its rail, road and ports intermodal links. Melbournes road congestion is discouraging investment, raising business costs, eroding efficiency and distorting decision making. Victorias road infrastructure has failed to keep pace with the growth of the economy and population. Melbourne currently has the slowest evening peak hour traffic speed of any Australian capital city at 37.4 kilometres an hour. The integrated plan will identify the bottlenecks, prioritise them and commit funding to remove them. This will lower the cost of doing business in Victoria and attract new companies to the state.

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The plan will help to attract new companies to shift toe and invest in Victoria by lowering the cost of doing business in Victoria.

INDUSTRY GRANTS AND ASSISTANCE A Liberal Nationals Coalition Government will: Overhaul industry grant and assistance funding to maximise jobs growth and commercial opportunities under a new overarching strategic direction to guide the distribution of industry grants and assistance. Maintain projected grants to industry assistance and support and ensure it is invested only where it will maximise jobs growth and business success for Victorians.

Under Labor, industry assistance and support funding in Victoria is ad hoc, uncoordinated, inefficient and lacks rigour, transparency and certainty. Labor has spent millions on industry support and assistance grants without any comprehensive public examination of their impact or effectiveness. The total lack of direction, monitoring or rigour across Victorias industry assistance and facilitation grant programs has created serious gaps, overlaps and missed opportunities for many businesses and employers. Too often funding is provided on the basis of relationships with government instead of value for money, commercial potential or jobs growth. A Victorian Liberal Nationals Coalition Government will invest in industry facilitation and support programs over the next four years, under a new model based on maximising jobs growth and commercial success. Under Labor there is almost no publicly available information regarding how industry assistance grants are awarded or whether that investment is generating positive returns. Labor hides behind commercial-in-confidence claims and refuses to establish transparent and rigorous monitoring and assessment frameworks for industry assistance, for fear of exposing its failure to produce jobs and commercial success.

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A Liberal Nationals Coalition Government will, in partnership with industry representatives, develop a new comprehensive strategic direction. The full range of industry assistance and support programs will be overhauled to identify which sectors are missing, and to direct investment to sectors that will generate maximum jobs growth and commercial success.

INDUSTRY AND STATE DEVELOPMENT A Liberal Nationals Coalition Government will: Establish an Industry Roundtable as a powerful and diverse industry group working for the best interests of industry.

The Industry Roundtable will seek input from industry to improve the efficiency and effectiveness of government in the delivery of infrastructure projects designed to improve Victorias competitiveness throughout Australia and the world. Based on the Infrastructure Australia model, it will be led by the Premier and will focus on building upon Victorias natural advantages, adopting a whole-ofgovernment approach that will include peak industry groups, financial services sector groups, education institutions, logistics bodies, energy suppliers and distributors, gas producers, business leaders and leading specialists. The Industry Roundtable will be proactive in high-level planning for key infrastructure needs, helping to develop the visionary long-term planning of critical infrastructure. This will entail comprehensive and thorough infrastructure audits and the development of strict economic cost/benefit analyses for each proposed project.

A Liberal Nationals Coalition Government will: Develop a strong centralised procurement policy for industry and for whole-of-government procurement. Charge the Industry Roundtable, in conjunction with government, to recommend a range of procurement policy initiatives that take into account Victorias competitive advantages, strong manufacturing base, accessibility to ports, rail, road and air and the availability of cheap energy.

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Ensure that the Secretary of the Department of Innovation, Industry & Regional Development (DIIRD) publishes key performance indicators and benchmarks on procurement performance outcomes of all government departments. Review and reform the use in procurement contracts of the wholeof-life valuation of local content to ensure local companies are getting a fair share of procurement contracts from all government areas of operation.

Labors handling of its local purchasing policy under the Victorian Industry Participation Policy (VIPP) has been a failure. Sub-standard overseas-made trains that cant brake nor operate on a hot day and the disastrous myki ticketing system demonstrate the failure of Labors procurement policy that has disadvantaged locally made and sourced goods and services.

A Liberal Nationals Coalition Government will: Initiate an immediate public review of all federal and state policies, regulations and laws that may impinge on the operations of legitimate trade and commerce across state boundaries.

This review would identify these restrictive practices and make recommendations for reform. These would be tabled before COAG for discussion and implementation in consultation with all other state and federal governments.

A Liberal Nationals Coalition Government will: Actively assist and support financial services businesses to base themselves in Melbourne and regional Victoria. Review the effectiveness of the state grants program in providing assistance to the financial sector. Initiate an analysis of the financial services sector to identify the areas of potential where state government could assist more effectively. Establish the support of Victorian-made and Victorian-grown through VicMade and VicGrown which will promote Victorianmade and produced products and services. 13

Based on the highly successful Made in Australia Campaign, the VicMade and VicGrown campaigns will include the creation and implementation of a marketing strategy. A Liberal Nationals Coalition Government will brand Victorian-made products for Victoria and Victorians. We have a proud history in agriculture and manufacturing. VicMade and VicGrown can be the benchmarks.

A Liberal Nationals Coalition Government will: Introduce a new set of strategic goals and rigorous performance measures for each Government Business Office (GBO). The results of these will be publicly released each year to ensure that Victorian GBOs are better focused on delivering tangible results for Victorias small and larger businesses.

It is essential for Victorias exporters that rely on and Victorian taxpayers who fund the GBOs that their operation has a high level of transparency and accountability, consistent with the need to protect strategically and commercially sensitive information. Victorian taxpayers should not be asked to duplicate services already being performed by Austrade. GBOs must remain focused on facilitating export opportunities for Victorian enterprises in a practical way that delivers real benefits for Victorian exporters and promotes the creation of more Victorian jobs.

A Liberal Nationals Coalition Government will: Support the recreational boating industry with special emphasis on the sufficiency, maintenance, design and management of boatlaunching facilities and marinas. Develop a comprehensive strategy to turn Victorias recreational boating industry into the national leader.

A Liberal Nationals Coalition Government will: Establish a textile clothing and footwear precinct.

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The establishment of this precinct is strongly supported by the Council of Textile and Fashion Industries of Australia. A textile clothing and footwear precinct will help to build synergies and improve efficiencies within this important industry. It will contribute to the generation of critical mass to enhance the retailing experience for shoppers, create a vibrant and exciting environment that will attract skilled employees, and attract international and domestic wholesalers. The precinct would also provide the impetus for new textile clothing and footwear promotional and tourism events as well as links into existing events such as Fashion Week. A TCF National Innovation Centre will form the centrepiece of the textile clothing and footwear precinct. No such centre exists elsewhere in Australia. It would act as a centre for excellence, driving industry efficiencies as well as improved productivity, quality and marketability. Such a centre could be linked to RMIT University which has a strong TCF focus and is a leading tertiary institution in this field. A Liberal Nationals Coalition Government will commit $100,000 towards establishing the TCF National Innovation Centre. An additional $100,000 will be committed over two years for the employment of a coordinator until it is self-funded by the TCF industry.

A Liberal Nationals Coalition Government will: Set up a centre in regional Victoria to develop the knowledge and expertise in addressing the threat of smoke taint in wine.

One of the greatest threats to Victorias wine industry is bushfire smoke taint. To safeguard against the risk of losing an entire years wine vintage, a Liberal Nationals Coalition Government will facilitate research into better understanding smoke taint so that cost-effective ways of safeguarding against it and of reversing its impact can be developed. Labor has failed to act and inaction in this field is placing a billion-dollar Victorian industry at risk. The 2006 and 2007 bushfires in Victoria's northeastern alpine region alone were estimated to have cost the Victorian wine industry more than $100 million, with smoke affecting vines as far a field as the Mornington Peninsula and Yarra Valley.

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A Liberal Nationals Coalition Government will commit $4 million over four years for the Department of Primary Industries to set up a centre for expertise in addressing the threat of smoke taint in wine. Research will focus on development of a better understanding the phenomenon so that cost-effective opportunities for safeguarding against its occurrence can be identified as well as methods for reversing its impact.

MANUFACTURING A new approach to manufacturing based on getting the basics right, backing local innovation and creating more local jobs is required, if the decline due to Labors 11 years of inaction is to be halted. The Liberal Nationals Coalition understands that Victorian manufacturers have the potential to lead the world in quality and innovation. Given a fair opportunity, local manufacturers can compete with international companies, deliver better products and produce more jobs for Victorians.

A Liberal Nationals Coalition Government will: Buy 40 new six-carriage suburban trains to build a better public transport network for Melbourne families with a $1.4 billion longterm commitment on top of any contracts signed by Labor.

The initiative will expand Melbournes suburban train fleet by about 20 per cent by buying a further 40 suburban trains during the Coalitions first and second terms. The plan will specify as part of the tender process that these new trains will largely be manufactured in Victoria, in contrast to Labors policy of exporting jobs to Europe. The plan will create hundreds of jobs and have huge flow-on benefits for local component suppliers from manufacturing trains in Victoria. Victorian manufacturers and sub-contractors will have a key role in providing these trains. The Liberal Nationals Coalition will start design, development and tendering processes in its first year of government, with $200 million in funding to be provided for the first delivery of trains in 2014. This is funded in the Transport Policy.

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A Liberal Nationals Coalition Government will: Undertake a comprehensive review of all state taxation, other revenue sources and government regulatory red tape with a focus on identifying inefficient taxes, charges and red-tape burdens that are impeding business investment and employment decisions.

A Liberal Nationals Coalition Government will: Within the first 100 days of election to office, request the Victorian Competition and Efficiency Commission to: o provide, within six months, advice on the best overall strategy that can be taken by the State Government to support the manufacturing sector; o include, as part of the request, the identification of manufacturing strengths in Victorias regional and rural areas and recommendations on the manner in which these industries can be promoted; and o identify the costs to the Victorian economy of allowing the manufacturing sector to continue to decline.

A Liberal Nationals Coalition Government will: Strengthen the Defence Industry Unit within DIIRD so that it aggressively targets opportunities for investment and employment within the defence industry. Ensure that potential investors and businesses are made more aware of the dedicated contact within government that is fully cognisant of the defence industry, and is well connected with the major industry participants. Assist Victorian manufacturers to better identify how their existing capabilities can be matched to defence-related prospects.

South Australian and Queensland Governments have substantially committed resources to pursuing the lions share of defence contracts in Australia, and as a direct outcome have managed to secure significant investment and jobs in this industry.

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Victoria has an insufficient focus on the industry and has been slow to recognise opportunities.

A Liberal Nationals Coalition Government will: Strengthen the role of departmental officers (Business Development Officers) to help local manufacturing companies plan for recovery and build their business.

As Business Development Officers, DIIRD Officers will get out in the field and work directly with small and medium-sized businesses, particularly in regional Victoria, to help them develop business and employment opportunities and ensure that they remain sustainable and retain local jobs. Under a Liberal Nationals Coalition Government a key responsibility of Business Victoria will be to ensure that Victorian companies are aware of and have every opportunity to participate in government and private contracts in other states and in New Zealand. There has been enormous infrastructure and other investment in the resources-rich states of Western Australia and Queensland. Victorian manufacturers should be well placed to participate in these developments and secure a far greater market share from resources developments than they have in recent years.

A Liberal Nationals Coalition Government will: Work with local manufacturers and industry groups to deliver on the commitments of the Australian Industry Participation National Framework to give Victorian manufacturers a full, fair and reasonable opportunity to participate in public and private sector opportunities, in a transparent process that offers value for the tax dollar. Ensure that local manufacturers are given fair and reasonable time in which to develop and submit a tender. Commit to ensuring Australian tenders require Australian Standards accreditation where appropriate. Minimise large tenders that lock small and medium manufacturers out of the tender process. 18

As appropriate, a Liberal Nationals Coalition Government will segment major state government projects providing more opportunities for small and mediumsized businesses to participate.

A Liberal Nationals Coalition Government will: Ensure government departments take a more uniform approach in making local procurement a strong consideration in their general purchasing program. Work with industry organisations to establish stronger rolling stock local content targets that are reflective of the level of quality and value for money of local manufacturers. Invest greater resources into the Industry Capability Network to more effectively broadcast project opportunities via enhanced networks direct to manufacturers and industry organisations. Support the establishment of an additional office of the Industry Capability Network in Warrnambool to assist local manufacturers in participating in local projects. Establish a pilot program, partnering Deakin Universitys Geelong campus and Geelongs leading industry body, the Geelong Manufacturing Council, to raise awareness and utilisation of the universitys research and its practical application to the manufacturing industry.

Victorias academic institutions are at the forefront of research in a number of areas that are significant to the future of the manufacturing industry. Much of this research could be used to assist businesses in improving processes, reducing waste or presenting solutions to practical, industry based problems. The opportunity will be given to students to research the needs of local industry, both at Deakin University and on-site at local manufacturers, fostering relationships and encouraging the post-education retention of students in Geelong. By establishing a relationship between Victorias academic institutions and manufacturers, business owners will have the opportunity to partake in industry advances, practically apply the expertise of researchers, and involve themselves in the research outcomes of the institution.

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The Liberal Nationals Coalition will appoint and support a Geelong-based officer to establish and promote this local industry linkage.

A Liberal Nationals Coalition Government will: Consolidate existing state government manufacturing support programs. Incorporate grants and government support programs into the new Grants Victoria, a one-stop shop that will have information available on one whole-of-government website. Streamline the grant application and approval processes. Work with the Victorian Industry Manufacturing Council to establish a rigorous monitoring and evaluation framework for existing government support programs, to ensure they are effective and in line with industry needs. Programs that fail to meet performance benchmarks will be reviewed and where appropriate replaced (not include Federal programs). Streamline grants given to small businesses by DIIRD. Establish performance benchmarks and publish them for all new programs that will be subsequently independently reviewed. Programs that do not meet their targets will be modified or as appropriate, scrapped. The assessment process will be conducted transparently and in consultation with industry groups.

Labor has failed to properly monitor and evaluate the numerous assistance programs. There is no way of knowing whether any one program is effectively assisting industry. A Liberal Nationals Coalition Government will consult with industry associations, manufacturers and individual small businesses to ensure these grants are actually what industry requires from government, and to evaluate whether the dollar allocation is fair. The range of federal and state government programs is confusing to businesses and needs consolidation and streamlining.

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The Liberal Nationals Coalition believes that to provide the best assistance to our local manufacturing sector, we need to properly monitor and evaluate the full suite of state government assistance programs and how they interrelate with federal assistance programs.

A Liberal Nationals Coalition Government will: Work with Business Club Australia and the Industry Capability Network to identify opportunities to promote Victorian manufacturers, using Victorias position as the host of a range of major events, including many of Australias premier sporting events, as a backdrop. Work with leading universities and other research institutions to better co-ordinate the states engineering, manufacturing and materials science research and higher education programs.

Victorian manufacturing industries will have difficulty competing head to head with low-cost countries such as China. Successful manufacturing in Victoria will benefit from companies operating in niche markets, exploiting comparative advantages (such as food production and energy) or being based on innovative design or unique technologies. Victoria has a very strong scientific, research and education base. Highquality research education and training is critically important to underpinning the long-term future of manufacturing in this state. Given the strategic importance of manufacturing to the state, a Liberal Nationals Coalition Government will work with leading universities to explore the potential for a similar approach covering engineering, manufacturing technology and materials science.

A Liberal Nationals Coalition Government will: Seek to arrest the flow of young people forced to leave traditional farming backgrounds due to economic and social circumstances, and actively encourage young working men and women to pursue a future in food production.

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Food manufacturing is a large component of the manufacturing sector in Victoria. Food processing represents 21.4 per cent of the total manufacturing industry and employs 55,000 Victorians. Labor has endorsed the previous governments target of $12 billion in food exports by 2010, but in recent years food exports from Victoria have stagnated.

EXPORTS AND TRADE A Liberal Nationals Coalition Government will work to revive Victorias export performance, and give our many world-class businesses every opportunity and assistance to make their mark in the global economy and secure more jobs for Victorians.

A Liberal Nationals Coalition Government will: Increase funding for the Opening Doors to Export (ODE) programs by $2 million over four years to better assist Victorian enterprises to undertake or increase export activities. Improve consultation with exporters by committing to regular meetings with stakeholders to receive input into the design and operation of export-assistance programs. Develop a complementarity strategy to assist Victorian exporters to engage with firms from other states and territories and take advantage of available synergies to better access new and developing markets. Promote Australian Government efforts to pursue free trade agreements that will provide opportunities for Victorian exporters. Push the Federal Labor Government to ensure that development plans for Avalon Airport are pursued.

The Liberal Nationals Coalition supports the development of Avalon Airport, north of Geelong, as a second international airport for Victoria to complement Melbourne Airport.

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Avalon, as a former defence site, operates under a more restrictive regulatory structure compared to Victorias other privatised airports. It is imperative for the future of the airport and the local economy that the Federal Labor Government work co-operatively with the airport and allow it to develop to provide wider services such as international flights (see Transport Policy for additional support of Avalon).

A Liberal Nationals Coalition Government will: Commit $1 million to promoting Victoria and its export industries at Expo 2012 in Yeosu, South Korea to showcase Victorias exporters to the world. Commit $1.25 million to promoting Victoria and its export industries at the Expo 2015 in Milan, Italy. Help to promote Victorian exports via a strong presence at both Expos that will give our export industries direct access to potential markets from around the world.

The Bureau International des Expositions (BIE) has determined that Yeosu, South Korea will host a three-month exposition from May to August 2012. The BIE has also awarded Milan, Italy, the 2015 World Expo to be held from May to October 2015. These Expos provide a valuable opportunity for Victorian exporters to promote the states goods and services to a world audience.

A Liberal Nationals Coalition Government will: Spend $2 million over four years to target vital overseas education markets with information and outreach services. This will promote Victoria as an education destination of choice under the Victoria: Leader in Learning banner, with stronger community safety policies and specific tertiary education and training policies.

This funding is in addition to the Thinking Global program funding, which will be rolled into the VLIL program.

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Education is not only Victorias biggest export service, worth more than $5 billion a year, but acts as a vital facilitator of business and cultural opportunities between Victoria and the world. International students educated in Victoria carry home with them knowledge and understanding of Victorias capabilities and culture, thereby opening doors for major export, trade and cultural opportunities. The Labor Governments failure to properly regulate the provision of education services has undermined Victorias position as a destination of choice for international students. Moreover, the Labor Governments failure to ensure community safety has resulted in severe damage to Victorias prized reputation as a safe place to study, visit and to conduct business. A 46 per cent fall in Indian student visa applications in 2009 compared with 2008 numbers is having a severe impact on Victorian education service providers and other parts of the Victorian economy to which the student sector is vital. The damage to Victoria reputation is a result of the Labor Governments failure to deal with massive increases in violent assaults will not be turned around quickly, nor easily. However, a Victorian Liberal Nationals Coalition Government will implement a suite of policies, including in the area of community safety, that will make Victoria a safer place to study for all students regardless of their country of origin. These policies include: o boosting policing and public safety in Victoria by increasing frontline police by an additional 1600 recruits in the first term of government with a $344 million plan to end chronic, statewide police shortages, and restore public safety in metropolitan and regional communities; making the train network safe again by putting Victoria Police Protective Services Officers on every train station in metropolitan Melbourne and the major regional centres after 6pm every day of the week. More Victoria Police officers will also patrol the train, tram and bus networks; spending $200 million over four years to help restore safety on public transport. Under the Coalitions plan, Victorians will have protection at stations that they currently lack under the Labor Government. There will be 940 fully trained professional Victoria Police PSOs to provide blanket coverage and protection at train stations every night; and

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providing 100 more Victoria Police officers to join the Transit Safety Division, lifting to 350 the total number of officers patrolling the entire train, tram and bus networks at all times.

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) The Liberal Nationals Coalition recognises the importance of the ICT industry to the Victorian economy and its capacity to improve the delivery of government services. The Liberal Nationals Coalition will ensure that the industry receives the leadership and support it deserves while restoring responsibility for project management to the portfolio. This will create clear lines of accountability and leadership within government, and make it easier for the industry to seek government assistance or compete for contracts to supply ICT infrastructure or services. Whole-of-government leadership for major government ICT projects will be ensured with the establishment of an ICT sub-committee of Cabinet consisting of the Premier, Treasurer, the Minister for Finance and the Minister for ICT. Victoria has a strong and vibrant ICT sector, being home to businesses as diverse as start-up internet service providers all the way up to Australias largest telecommunications company. The commissioning and management of ICT projects and recurrent ICT expenditure is now a major expense for government, with more than $2 billion spent on government ICT projects since 2002 by departments alone, and hundreds of millions of dollars spent annually on purchasing ICT services. In 2008 the Federal Government commissioned the Gershon Review on the governments use of ICT. It noted that leadership at a ministerial level and adequate resourcing from both skills and funding perspectives were critical to the successful delivery of government ICT projects. Labor has ignored this. The Liberal Nationals Coalition recognises that all ICT spending by government must have clear and identifiable efficiency and productivity benefits.

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A Liberal Nationals Coalition Government will: Implement the new ICT Industry Plan in collaboration with industry, and establish firm targets for ICT skill development, investment and export and the development of ICT infrastructure in Victoria. Refocus ICT grants, and in conjunction with the ICT Industry Plan, simplify existing ICT grants streams, with financial assistance matched, where appropriate, to sustainable employment targets and conditional on those targets being achieved. Pursue opportunities for Victorian ICT companies with the National Broadband Network project and press the Commonwealth to upgrade Victorias broadband capacity in the interim. Improve governance and effectiveness of ICT procurement by implementing the relevant recommendations of the Gershon Review with respect to procurement and the management of government ICT projects. Develop the capability of the Centre for IT Excellence (CenItex) to provide high-level ICT strategy, planning and project management advice to assist agencies in developing and managing ICT projects.

Project developers will be required to comply with the best-practice guide for public sector ICT investment published by the Auditor General, and agencies will need to demonstrate the imperative for customised solutions ahead of offthe-shelf products.

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TOTAL COSTINGS:
Recurrent Funding
Policy Textile Clothing and Footwear Precinct Smoke Taint Centre for Research and Development Geelong Manufacturing Council funding Opening Doors Export (ODE) 2012 Expo in Yeosu, South Korea 2015 Expo in Milan, Italy VLIL Total 2011/12 $0.05 m 2012/13 $0.05 m 2013/14 Nil 2014/15 Nil Total $0.10 m

$1.0 m

$1.0 m

$1.0 m

$1.0 m

$4.0 m

$0.2 m $0.5 m Nil Nil $0.5 m $2.25 m

$0.2 m $0.5 m $1.0 m Nil $0.5 m $3.25 m

$0.2 m $0.5 m Nil Nil $0.5 m $2.2 m

$0.2 m $0.5 m Nil $1.25 m $0.5 m $3.45 m

$0.8 m $2.0 m $1.0 m $1.25 m $2.0 m $11.15 m

Capital Funding
Policy Textile Clothing and Footwear Precinct Capital Cost Total

$0.10m $0.10m

Authorised by Tony Nutt, 104 Exhibition St, Melbourne VIC 3000.

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