Good afternoon, everyone.
I would also like to acknowledge the Dharawal people as the traditional custodians of the land that we are meeting on, and pay my respects to their Elders past, present and emerging.
Thank you, David, for that introduction and thank you for having me here today.
I would also like to acknowledge Michael Zorbas, Chief Executive of the Property Council, and our panellists today:
- Adam Malouf, University of Wollongong
- Marika Calfas, NSW Ports, and
- Tracy Preston, MMJ Real Estate
Their diverse backgrounds and experiences should provide for a lively panel discussion.
As you know, I was elected as member for Cunningham at the last election.
When I was campaigning and people asked me what I stood for – the answer for me was easy. I care about people, I care about jobs and I care about our planet.
It might not sound unique, but these values guide my approach to issues.
My story is similar to many in the region.
My dad was a coal miner who was in and out of work during the tough economic conditions in the 1980s and 90s. We nearly lost our house on numerous occasions. This was terrifying for mum and dad and they never ever really felt secure.
I don’t want to see any family go through that.
We need to not only look at how we are leaving the planet for future generations – but also what type of jobs we will be leaving our future generations.
When I think about how those values translate to our region I think about where we are today and how we position our region for our next generation.
We need to look at our challenges and where there are emerging opportunities.
And how we overcome those challenges and take advantage of the opportunities.
Two emerging opportunities in the Illawarra are clean energy and the care economy.
Underlying them are some deep challenges including those of hard to abate industries, labour availability, skills mix and housing working families.
I’ll start with opportunities and firstly, the clean energy economy.
The clean energy revolution is upon us.
Trillions will be invested over the coming years as we strive towards net zero emissions globally to leave a better planet than we inherited.
COP28 last year saw 124 countries sign up to tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements.
And transitioning away from fossil fuels in energy systems in a just, orderly and equitable manner.
For the Illawarra’s industrial landscape this presents challenges but also opportunities.
And it is how we rise to meet those challenges that counts and that those outside the region will be paying attention to.
When I was growing up the big industries were coal and steel.
Now, according to the last Census, nearly 22,000 people are employed in the health care and social assistance industry in the Illawarra – more than double the next nearest sector of education and training.
Our three biggest employers, in this order, are the Illawarra Shoalhaven Local Health District, the NSW Department of Education and then Bluescope.
That is a considerable transformation of our economy and our workforce.
And all three of our biggest employers are facing challenges.
For example, BlueScope, who employ over 9,000 people directly and in associated industries in the Illawarra, has substantial challenges going forward in a very hard to abate industry.
There has been some controversy around the reline of number 6 blast furnace. People have asked me why they chose to reline the blast furnace rather than invest in new DRI technology.
The answer is they are doing both – relining the blast furnace and partnering with Rio Tinto and BHP to investigate the development of the country’s first ironmaking electric smelting furnace (ESF) pilot plant.
Current DRI technology requires pure forms of iron ore. Iron ore mined in Australia is of lower grade and there is currently no DRI technology for that lower grade iron ore.
In order to create jobs and secure investment we need to look at opportunities for adding value to the supply chain.
As well as securing steel making in our region we have to look at emerging industries such as home electrification, hydrogen and offshore wind – which all have the potential for local investment and local secure, well paid jobs.
Rewire Australia estimates that if two thirds of the around 4,500 dwellings in the Electrify 2515 project electrify their homes and their average 1.8 cars per household – this alone would create more than $1.3 million in work for tradies, supporting around 120 jobs. Just for one postcode.
You don’t need to be a maths wizard to work out just how sizeable a task it is to extend this globally or the multiplier effect it could have on the Illawarra and beyond.
I’m sure you have all heard about the proposal for an offshore wind zone in the Illawarra. This is another opportunity to create and support thousands of jobs here.
Current estimates suggest around 2,500 jobs in construction and 1,250 ongoing jobs. These figures do not include manufacturing components of wind turbines.
The power from the current proposed zone would power our homes and support our energy intensive industries such as BlueScope, Bisalloy, Hysata, BOC Gas, Manildra, MM Kembla, David Brown Santasalo and other major energy users and manufacturers in our community as well as new industries that may locate here as a result of available energy supply.
There are considerable opportunities for more jobs and investment for local manufacturers – just in the steel space alone it is anticipated that the floating structure of one turbine would need 6,000 tonnes of high-quality steel.
To make sure everyone shares in the benefits from hosting a project like this, I have proposed a Community Benefit Dividend to the Minister.
This would return a share of the capital investment value, or associated revenues of any projects, to the community to investment in community amenities for the benefit of the region, or alternatively significantly discounted electricity for residents and businesses.
Either way, it’s a way we can win.
Global demand for renewable hydrogen is growing rapidly and is projected to reach 500 million tonnes per year by 2050. Australia currently hosts about 40 per cent of the pipeline of world hydrogen projects.
Regions like the Illawarra can and should play a part in supplying renewable hydrogen and the technology to heavy industry at home and abroad – and our government is investing to ensure they can do just that.
Our trading partners who we have supplied high quality coal to for decades will be replacing this energy source and they should be looking to the Illawarra for that energy supply.
Hysata at Port Kembla received $20.9 million from ARENA to develop an advanced electrolyser that can produce renewable hydrogen more efficiently.
This follows on from joint Australian and German Government funding of over $17 million last year for Hysata under the HyGATE initiative for a pilot stage 200 kilowatt electrolyser.
Our local companies are doing some amazing things.
These are ideas and opportunities that we should be discussing as a community – looking at how we can use our skills and natural assets to be front and centre of a future clean energy economy and taking them to the world.
Some of these are contentious but then again, so was the Sea Cliff Bridge.
Mobile phone towers were contentious too – in the 1990s and early 2000s nobody wanted a mobile phone tower anywhere near them.
Today, they are a minimum standard of a modern community – accepted as necessary. On your drive home today – have a look at how many you drive past without even noticing them.
And secondly we also need to look at our care economy which is crying out for more workers – our hospitals, our nursing homes, home care for our older Australians, child care and disability care.
Wages in some of these industries are traditionally at the lower end – and we need to do better.
If we expect people to provide high level care – we should not expect it done at bargain basement wages.
In a full employment economy this means staff shortages and poorer outcomes for those needing care.
Already, Labor has increased wages for aged care workers by 15 per cent and increased the minimum wage by 5.75 per cent last year.
By ensuring that our care sector has the skilled workforce we need, we also free up more workers, particularly women, to join the workforce.
Australia’s population is ageing and we need the workers to look after them.
And to attract workers to our region, we need affordable places for them to live.
And this leads me into our housing challenge.
It’s talked about a bit at my place lately!
There is a real shortage of rental accommodation in the Illawarra.
As of last September the vacancy rate was 1 per cent meaning competition for rental properties is fierce.
The price of a rental property remains high with the median price for a rental property in the Illawarra is $668 per week - well above the national average of $601.
The Albanese Labor Government has an ambitious housing agenda – we need to be ambitious in order to increase supply.
We have a suite of programs, such as the Housing Australia Future Fund which is currently open for the first round of applications and will support 30,000 new social and affordable rental homes across the country in the Fund’s first five years.
This includes 4,000 homes for women and children impacted by family and domestic violence or older women at risk of homelessness.
Over five years from 1 July 2024 we have the target of building 1.2 million homes through the new Housing Accord with our states and territories.
To ensure these targets can be met, we are providing a $3 billion New Homes Bonus and $500 million housing support program.
In August last year the Albanese Government took its strategy for a better deal for renters to national cabinet and is working with states and territories to implement reforms.
Already 1,578 people in the Illawarra, Shoalhaven and Southern Highlands now have the keys to their own home, thanks to the government’s improved Home Guarantee Scheme.
Without addressing housing supply with a diverse range of housing types and prices, we place an artificial cap on our capacity to realise all that the region is capable of.
Workforces will be constrained, University student numbers will be lower than our local University’s capacity and young people – the creators, the innovators, the risk-takers, the future employers – will be less attracted to move or stay here.
You only need to look at what has been happening in San Francisco to see what could happen if we don’t address housing supply.
Another challenge is skills.
Our region needs skilled workers. As our industry changes, we need people with the right skills and training and there is a lot to do here.
I fought for and secured funding for a $10 million Energy Futures Skills Centre at the University of Wollongong and $2.5 million for a Renewable Energy Training Centre at Wollongong TAFE.
We have also invested our local University of Wollongong with an additional 936 Commonwealth Supported places and 425 STEM related places for the University of Wollongong.
Labor has also rolled out 300,000 fee free TAFE places with an additional 300,000 available from this year.
To further improve the region’s infrastructure and better connect this region with Sydney, South-west Sydney and Australia the Federal Government contributed $250 million to the construction of the Mt Ousley interchange.
We also contributed $80.7 million towards the upgrade of Picton Road another joint project in partnership with the NSW Government.
Our region continues to change and evolve.
We need to be a region that doesn’t just say no to any proposal for investment that is put forward.
We need to consider ideas through the prism of will this help us to become the best that we can be. But any proposal needs to stack up environmentally.
Young people – our next generation of workers - want to live in dynamic and vibrant communities surrounding by exciting new industries and opportunities.
Over the last five years Sydney has lost double the number of people aged 30 to 40 years than it attracted. This was largely because housing was not available.
Let’s not repeat this.
Last night at the 2023 Smiths Hill High School Presentation Night, Year 12 graduate and dux, Euan Christopher said “let’s be pro stuff, not anti stuff”.
Salient words of a young voice – one who achieved an ATAR of 99.85 no less!
We need to look at the opportunities that arise.
But those opportunities must stack up – financially and environmentally.
And then we need to make sure that our local workers have the skills we need to take advantage of secure and well paid jobs in new industries.
We also need our care sector to have the trained workers it needs to be able to care for our ageing residents, our children, our sick and people with disabilities.
We also need to make sure we can house people.
Housing is fundamental and Labor is committed to increasing supply so there are options for renters, for home buyers, downsizers and key workers as well as increasing social housing.
We need to look at how we help young people start on the great Australian dream of buying a new home.
The Wollongong of today is not the Wollongong of 100 years ago or even 50 years ago. And it will continue to change - it is about how we influence that change and harness the opportunities that stem from it.
In 2042 Wollongong celebrates 100 years of being a city. I want that city to have a thriving economy, a dynamic social community and be part of a cleaner environment with all of the beauty and benefits that our ‘sound of the sea’ city has to offer.
It is up to us collectively to make that happen – in the race for global talent and investment it will not be handed to us.
