Defence hub would help drive growth
THE defence industry could play a key role in creating a core industry hub in the Geelong region to replace the productivity lost by the closure of major manufacturers in recent years, according to the Australian Industry Group.
AI Group chief executive Innes Willox said Geelong’s phenomenal growth was driving investment and economic activity.
“But a centre like Geelong could really benefit from getting some more hubs in place,” he said.
He said government investment in Geelong, notably through the social insurance agencies, was helping to drive the economy but “it’s not in itself productive and what have got to get is that productive growth”.
He said that was where aggregating core industry groups came into play and where the defence industry could play a key part.
Mr Willox was speaking after the Ai Group hosted a presentation in Geelong by Reserve Bank assistant governor (economic) Luci Ellis.
An emerging theme was why business was not investing in an economic environment featuring low inflation and with interest rates at historical lows.
Mr Willox said a range of domestic factors, including drought, a fall in house prices and high energy costs, combined with international influences such as the fate of Brexit, the US-China trade standoff and the Hong Kong pro-democracy riots, were undermining consumer and business confidence.
“There is a distinct lack of confidence in the strength of the economy,” he said.
“What we need are ways for government to help encourage investment, create the condition for investment around things like skilling, R&D, training . . . all of these are key investments that business can make to help propel their business forward.
“There just isn’t the confidence there.”