Australian Labor party’s leader Anthony Albanese has announced his plan to create a new $1.5 billion (US$105 billion) fund to secure Australia’s medical goods supply chains.
The money would be used to boost domestic medical manufacturing capability, such as creating medical technologies, producing rapid antigen tests, and creating vaccines.
During his campaign in Western Australia, Albanese said his plan aims to tackle supply chain shortages for critical products including medicines and personal protective equipment.
“A country that takes its pandemic preparedness seriously would have ensured we made more rapid tests and vaccines here,” the opposition leader said on Tuesday.
“Serious countries should make things. Serious countries should be led by builders, not bulldozers, which is how I would lead a future Labor government.”
Labor added that its plan to invest in the medical technology sector could bring an additional $18 billion to the Australian economy and create 28,000 new jobs within the next eight years, quoting a 2018 report.
Meanwhile, Ed Husic, Labor’s spokesman for industry and innovation argued that Australian medical companies are ready to manufacture essential medical supplies but they “need a government who’ll back them.”
“We once had a proud heritage of medical manufacture in this country that has been undermined by a Coalition government that often refuses to work with or back local firms,” Husic said.
“There was no stronger proof when it became easier to buy an Australian-made rapid test in the US and parts of Europe than it was in the very country they’re made.”
Investing in the health sector is one of Labor’s key election policies. On May 14, the party announced a A$970m funding package to strengthen Medicare, but it did not mention how this will improve health outcomes and equity of access. Labor has also suggested opening a network of urgent care clinics in order to reduce pressure on the hospitals. However, the plan is expected to be undermined by the widespread healthcare staff shortages.
On the other hand, the Coalition is reluctant to increase the government’s funding in the healthcare sector.
The Morrison government has also criticised Albanese for delaying the release of its policy costings, but Labor said it would do so on Thursday, two days after the Coalition disclosed how it would pay for its policies.
On Tuesday, Treasurer Josh Frydenberg said the Coalition has committed $2.3 billion for 35 policies.
These include more seniors having access to the health concession card, reducing the co-payments for taxpayer-subsidised medicines, and a new policy to support first home buyers into the property market by allowing them to access their superannuation.
To help offset these costs, the government would increase the efficiency dividend on departments and agencies by 0.5 percentage points to two per cent, saving around a further $1 billion.
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