The latest data demonstrates the Albanese Government’s first term industrial policy settings have delivered a Valley of Death for Aussies manufacturers and construction companies.
According to the official Australian insolvency statistics, released by ASIC on 10 January 2024, manufacturing insolvencies have steeply risen under Labor’s watch. The data shows that just half way into the 2023-24 financial year, 243 manufacturing businesses have already become insolvent. Alarmingly, this number is around three times higher than the same period just two years ago under the Coalition.
This comes as Labor’s much-vaunted National Reconstruction Fund has failed to support a single manufacturer with a single cent almost a year after it was passed by the Parliament. Anthony Albanese has been in office for nearly two years promising to “make things here” but has instead fiddled with press releases while Australian businesses have gone to the wall.
The dire state of the construction industry has also been revealed with 1,387 insolvencies over the six months to December 2023 compared with 565 over the same period in 2021. More construction companies have gone insolvent in the year to date than the entire 2021-22 Financial Year (1,284). Bankruptcies in the construction industry are now roughly twice the pre-Covid level and this follows a 30 per cent rise in construction input costs (November 2023 ACIF Forecasts).
Deputy Leader of the Opposition and Shadow Minister for Industry Sussan Ley said the tripling of insolvencies across Australian manufacturing businesses and the crisis facing Australia’s builders is the direct result of Anthony Albanese and Industry Minister Ed Husic’s failed industrial policies and distracted priorities.
“Labor promised they would ‘rebuild Australian manufacturing’ but all they’ve managed to assemble is an industrial graveyard, a graveyard which is now littered with once great Australian businesses,” the Deputy Leader said.
“While Ed Husic has been busy going to black tie events in Silicon Valley, Australian manufacturers and builders have been thrown off a cliff and into Labor’s Valley of Death.
“Labor bet the house on the National Reconstruction Fund and contrary to the Prime Minister’s misleading statements this week, it is not “open for business” and is not delivering any support.
“The NRF is the wrong policy at the wrong time, struggling Aussie manufacturers don’t need Anthony Albanese as a business partner, they need cheaper power bills, less red tape, and their government to deliver an economic plan.”