Tuesday, 4 March 2025

Manufacturing sector

Richard WELCH (North-Eastern Metropolitan) (19:17): (1468) My adjournment matter is for the Minister for Industry and Advanced Manufacturing. Victorian manufacturing is struggling, as shown by the collapse of Oceania Glass, our state’s only architectural glass manufacturer. This is more than just a failure of a business; it is a stark warning about the challenges faced by domestic manufacturers due to rising costs and cheap imports. Oceania Glass has a proud history dating back to 1856, and it has contributed to many of Victoria’s and Australia’s most iconic buildings, including the federal Parliament House. Yet despite its expertise, the company has entered administration, threatening 260 jobs and vital domestic supply chains and sovereign capability. The causes of the collapse are rising operational costs, a big land tax, aggressive foreign competition and regulatory delays that have left Victorian manufacturers generally exposed. Without targeted assistance, foreign manufacturers with oversupplied markets and government subsidises of their own have been able to undercut local production, making it impossible for Victorian companies to compete.

The case highlights the broader crisis in Victorian manufacturing. High fixed costs, rising wages and supply chain disruptions have placed immense pressures on businesses. Combined with an inconsistent regulatory response, many industries struggle to survive. Oceania Glass is one of many manufacturing insolvencies this financial year, while the construction sector, heavily reliant on Victorian-made glass, has seen a marked increase in business failures also. This is unsustainable. The Victorian government must act urgently by providing targeted support for local manufacturers, ensuring fair competition through stronger state procurement policies favouring Victorian-made products and investing in domestic manufacturing capability and resilience. We must assess industry vulnerabilities and develop a long-term plan to secure jobs and boost domestic manufacturing. If strategic industries like glass – particularly, in the case of Oceania, structural glass manufacturing – continue to fall, Victoria risks increased dependence on imports, threatening jobs and supply chain security and further erosion of sovereign capability. The action I seek is a comprehensive strategy to strengthen Victoria’s manufacturing sector, including targeted support measures such as incentives for local production and state procurement policies that prioritise Victorian-made goods.