From the Ministry

Backing Australian businesses

In recent times, we have seen some outstanding examples of Australian companies rising to meet the challenges of the COVID-19 crisis. From ventilators to face masks, much has been made of the incredible efforts to manufacture essential medical supplies for the national stockpile.

Right at the outset the Federal Government knew we had to act quickly. We set up a tiger team to identify the production capabilities and capacity of Australian manufacturers. Specialist engineers from the Australian Defence Force (ADF) were also brought in to assist with repairing and constructing production machinery. In the space of three months, we supported a 100-fold increase in domestic mask production capacity. We also helped facilitate the production of thousands of ventilators. It was that display of Aussie ingenuity and the way manufacturers stepped up that has in part reinvigorated the Australian public’s willingness to support local industry. We need a healthy local manufacturing industry, not only to meet domestic demand for essential products in a crisis, but for the economic health of the nation. During this crisis that has been reaffirmed for many Australians, I’ve been thrilled at the level of public support shown to Australian businesses and the Australian Made campaign. The Australian Made logo of a gold kangaroo on a green triangle is an instantly recognised and trusted symbol of quality, and I was delighted to recently help launch a three-month advertising campaign to support Australian made products. The campaign’s tagline sums up the sentiment I’ve been hearing from across the country: “There's never been a better time to buy Australian Made than right now.” And there never has been. We all need to play a part to help our nation emerge from the economic hit we have suffered as a result of the pandemic. I encourage all Australians to consider buying products made by Australian companies in Australia. Doing this supports local business and provides jobs for fellow Australians. It creates an increased demand for everyone along the supply chain – from local courier drivers to packaging suppliers, manufacturers of various components, and primary producers. All Australians benefit from consumers buying products made in Australia. Many of our manufacturers cannot compete simply on cost, but they are world-leading on quality. A great example of a business making premium quality products is UGG Since 1974, which produces UGG boots on the Gold Coast out of local sheepskin. Hannah

Industry Minister Karen Andrews with Hannah and Todd Watts, owners of UGG Since 1974

Watts, one of the owners of UGG Since 1974, spoke of the importance of the Australian Made brand when I visited the company recently. Although UGG boots are an Australian innovation and seen by many as being an Australian product, about 96% of the world’s UGG boots are actually made overseas. As Hannah said, “Australian made products do come with a price tag, but what’s been amazing out of COVID-19 is that people are actually starting to really care about the origins of where the things [are made].” Hannah added that her company had benefited greatly from the surge of interest in buying goods made in Australia and has been able to rehire all the staff who had originally been stood down at the start of the pandemic. Embracing the quality of Australian-made products is not about being insular or shutting ourselves off to the rest of the world. In fact, helping our own companies domestically is just one side of the story, and on its own will not support Australian manufacturers to grow. Australia is a trading nation and we have to export to the world. Trade is very important to the health of our small and medium businesses. That is why our Government has boosted funding to promote the Australian Made logo in overseas markets and is backing our exporters. One way we are helping exporters is through our very successful Export Market Development Grants (EMDG) scheme. We provided an extra $60m dollars for the scheme in the 2019 budget and, as part of our response to COVID-19, have injected a further $49.8m. Our JobMaker program is also helping businesses to access export markets and create jobs. Our support to small and medium businesses, including the JobKeeper program, has kept many businesses afloat during the pandemic. Now we need to do more than just help businesses stay afloat. Our businesses need to thrive. The Government is doing its bit to help, but everyone can play a part. If we work towards the common goal of supporting our local manufacturing industries, we will emerge from the COVID-19 crisis better and stronger than ever.