The fund will benefit car part makers and food manufacturers, Labor says. (Supplied: GM Media, file)
Australian manufacturing businesses will have access to a new $1-billion fund if Labor wins the next election.
- The fund will be modelled on the Government’s Clean Energy Finance Corporation
- Labor says the government-run bank will plug a hole in financing for Australian manufacturers
- Bill Shorten will announce the policy at the ALP’s state conference in Adelaide
The party will today announce plans for the government-run bank, saying the ALP wants to support car part makers and food manufacturers.
“[The fund is] to provide opportunities for companies that want to invest in themselves, but can’t get access to finance from the banking system,” Labor industry spokesman Kim Carr said.
“Australian manufacturers are facing acute difficulties at the moment, having real trouble finding access to finance to develop new technologies and to develop new jobs.”
The Australian Manufacturing Future Fund would provide concessional loans and loan guarantees.
Carmakers exit Australia:
- Started Australian manufacturing in 1963
- Altona production ceased October 3
- Began as an Australian saddlery business in 1856
- Closes Australian operations on October 20
- Opened in Australia in 1925
- Closed Australian operations last year
Labor said it would not make cash grants, and would apply “commercial rigour” to projects.
The lender would be modelled on the Government’s green bank, the Clean Energy Finance Corporation.
“It’s been highly successful,” Senator Carr said.
“We know that this actually is a mechanism that makes money for the Government.”
Labor leader Bill Shorten will announce the policy at the South Australian Labor Conference in Adelaide.
The Opposition said the agency itself would cost $17 million annually to run, but its loan book would not be included in the federal budget.