The Federal Government's Capacity Investment Scheme presents a critical opportunity to bolster local economic participation in the renewable energy transition. However, the proposed eligibility and merit criteria included in the Design Paper are far too vague.
According to Geoff Crittenden (CEO, Weld Australia), "In its current form, the Capacity Investment Scheme will not create a single local job. The Scheme will not add a single dollar to Australia's economy. It offers Australian manufacturing no future."
"It is essential that specific, enforceable local content requirements are formally incorporated into Capacity Investment Scheme tender assessments. The contracts awarded must then be drafted with sufficient power to be readily enforceable by the Australian Government," said Crittenden.
Weld Australia strongly recommends that a significantly favourable merit weighting be given to tenderers who guarantee local content of Australian fabricated steel as follows:
- Onshore Wind Towers >50%
- Offshore Wind Towers >40%
- Solar Farms > 60%
- Monopole Transmission Towers > 60%
- Lattice Transmission Towers > 60%
"Australian businesses have long advocated for specific, measurable local content requirements in government contracts. However, tangible examples of local content procurement policies are yet to materialise in Australia," said Crittenden.
"The federal government's Buy Australian Plan and the Australian Industry Participation scheme were bold steps aimed at harnessing the government's purchasing power to boost local industries. Yet, these schemes are failing to hit the mark.
"Besieged by vague specifications, a lack of enforcement, and loopholes that allow for non-compliance, the initiatives have struggled to provide local businesses with a fair shot at government contracts. The one-two punch of bureaucratic red tape and a lack of transparent processes has not only created barriers but also sown distrust among Australian businesses. Despite their goals to invigorate the economy and create jobs, these schemes have fallen short in both accountability and effectiveness, leaving the potential of Australia's manufacturing industry untapped and their growth stunted."
"Without action, the Capacity Investment Scheme will be just as toothless," said Crittenden.
"The Australian Government must commit to building sovereign manufacturing capability for renewable energy projects by incorporating specific, enforceable local content requirements into the eligibility and merit criteria of Capacity Investment Scheme tenders."
"This will fortify domestic clean energy supply chains, boost investor confidence, and cultivate a skilled workforce for the energy transition, positioning Australia as a global renewable energy leader," said Crittenden.
About us:
About Weld Australia
Weld Australia is the peak body representing the welding industry in Australia. Our members are made up of individual welding professionals and companies of all sizes. Weld Australia members are involved almost every facet of Australian industry and make a significant contribution to the nation's economy. Our primary goal is to ensure that the Australian welding industry remains both locally and globally competitive, both now and into the future. A not-for-profit, membership-based organisation, Weld Australia is dedicated to providing our members with a competitive advantage through access to industry, research, education, certification, government, and the wider industrial community. Weld Australia is the Australian representative member of the International Institute of Welding (IIW).
