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Parliamentary Questions


Question Without Notice No. 559 asked in the Legislative Assembly on 12 October 2021 by Ms M.J. Hammat

Parliament: 41 Session: 1

JOBS — MANUFACTURING

559. Ms M.J. HAMMAT to the Premier:

I refer to the McGowan Labor government's unprecedented efforts to create new jobs and diversify the economy, including its significant investment in boosting local manufacturing. Can the Premier update the house on how this government is helping to bring manufacturing back to Western Australia, and outline what this will mean for local jobs and local businesses?

Mr M. McGOWAN replied:

I thank the member for Mirrabooka for the question. We put a huge amount of effort into diversifying the economy. In our first term, we invested heavily in tourism, agriculture, defence work and green jobs. We have invested in emerging industries such as hydrogen, lithium and battery materials; and we have invested in bringing manufacturing back to Western Australia. A few months ago, the Minister for Transport, the member for Midlands and I opened the Bellevue railcar manufacturing plant, where we are manufacturing new Metronet and Australind railcars. The great news is that we have put a huge amount of effort into iron ore railcar manufacturing. I recall that before the election it was subject to some criticism, perhaps, from the Liberal Party and others. Fortunately, our effort has paid off. Rio Tinto has announced its commitment to an initial purchase of 50 iron ore railcars from Western Australian manufacturers and then 10 railcars a year for at least the next five years. This is a wonderful announcement and vindicates our effort to achieve this outcome. I congratulate Rio Tinto on what it has done. I passed on my congratulations to their senior executives, particularly Simon Trott, whom I saw the other day.

This is quite extraordinary stuff. For the first time in living memory, iron ore railcars will be manufactured in Western Australia. When members go to the north of the state, they will see that there are lots of railcars there, but at this point in time they have all been imported. For the first time, they are being manufactured here. I would like to see—I have passed on my request—some of the other major iron ore exporters do the same thing, and perhaps even join Rio Tinto in this approach, because obviously if they join, we can reduce the overall costs to each party because scale reduces cost. This will be a great thing if other iron ore exporters do exactly the same thing as Rio Tinto has done. I would like to especially congratulate once again the Rio Tinto team. This is an extraordinary thing and a great vindication of the effort to which the state government has gone to achieve this outcome. By the way, I forgot to mention that we put $15 million into a local manufacturing investment fund especially for iron ore railcars.

We are investing in not only railcars; we are also working on wind farms and standalone power systems for Western Australia, particularly to be placed at the edge of grid. We are using our strengths, particularly in the areas of minerals and renewable energy, to leverage manufacturing into Western Australia. For the first time in a long time this state has a government that is focused on these things and we can see the fruit of our effort right here.