Spirits manufacturers have welcomed Prime Minister Anthony Albanese’s announcement of a ground-breaking investment in Australia’s manufacturing capability under the Future Made in Australia Act.

The whole-of-government package of new and existing projects aims to drive investment.

“We will bring together, in a comprehensive and co-ordinated way, a whole package of new and existing initiatives to boost investment, create jobs and seize the opportunities of a future made in Australia,” Albanese said.

“We want to look at everything that will make a positive difference. Investing in new industries – and ensuring that workers and communities will share in the dividend.”

Spirits manufacturing generates $15.5 billion in added-value to the Australian economy, with over 700 distilleries and manufacturing plants across the country, supporting more than 5,700 jobs in spirits manufacturing and a further 100,000 jobs throughout its value chain.

Australian Distillers Association chief executive Paul McLeay said the industry looks forward to partnering with the Federal Government to deliver on its visionary policy objectives.

“This announcement comes hot on the heels of the Government opening the Inquiry into Food and Beverage Manufacturing in Australia, which is the perfect forum for us to showcase our potential contribution to the Australian economy,” he said.

“At a time when there is renewed excitement at the export potential of Australian wine, the spirits industry can help deliver the Government’s objective of diversifying our economy and trade.

“In fact, new economic modelling shows Australian spirits could become a $1 billion export powerhouse by 2035.

“We wholeheartedly agree with the Prime Minister’s statement that Australia, ‘must be more assertive in capitalising on its comparative advantages’.

“Australia has an abundance of riches when it comes to spirits manufacturing, in terms of ingredients, infrastructure and technical prowess.

“We just need to get the policy settings right to fulfil our potential, starting with urgent reform of Australia’s spirits tax, which is clearly at odds with the Government’s economic objectives for the manufacturing sector.”

Spirits & Cocktails Australia chief executive Greg Holland said the country’s major spirits manufacturers are ideally placed to provide the international investment that the Government aims to attract.

“The Australian spirits industry is composed mainly of small businesses, with 88% of manufacturers employing less than 20 employees,” he said.

“Foreign direct investment is the key to unlocking industry growth. To date however, only three per cent of businesses have been able to access this vital funding.

“Given the right policy settings, our international members are eager to step up their investments in Australia to enhance the industry’s capacity to grow exports and create jobs at our distilleries, half of which are located in regional areas.

“The Prime Minister spoke today of the need to aim high to realise the opportunities ahead, noting that while there was unlimited potential, there is limited time to be truly competitive with the progress already made in countries like Japan, Canada and the United Kingdom.

“These countries have already taken bold steps to enhance their spirits manufacturing capabilities, by freezing excise duties and investing in developing their spirits manufacturing industries.

“The time is ripe for Australia to join the race and capitalise on our natural advantages that set Australian spirits apart on the world stage.

“We are willing and able participants, ready to harness the opportunities of the future.

“We congratulate the Prime Minister on another important initiative for the Australian manufacturing sector and look forward to working with his government to realise the potential of the Australian spirits industry.”