The comments, contained in response to recommendations made in Senator Kim Carr's 'Building Innovative Capability' report, noted the TFIA strongly disagreed with funding recommendations in relation to the establishment of a new TCF Innovation Assistance Package.
The author of the report, Roy Green, suggested the package - which covers the period 2009 to 2015 and replaces the existing TCF Strategic Investment Program (SIP)scheme - be given a budget of $250 million.
However the TFIA said that while it welcomed an increase in assistance for the TCF sector, it did not support a policy that "fails to manage a fair and equitable shift away from structural adjustment for all sectors in the supply chain".
"Faced with a potent combination of adjustment pressures imposed by significant tariff cuts scheduled post 2010 and the global economic downturn, we request that the existing SIP arrangements be allowed to continue as legislated."
The TFIA suggested the program be backed by $750 million in funding.
It also described a recommendation that $200 million fund for a 'TCF Innovation Capability' program as "inadequate".
"In light of forces contracting TCF markets we believe that the government needs to increase levels of support commensurate, at least, with current programs (in total approximately $100 million per annum), as well as provide additional funding to the value of a further $50 million per annum."
TCF businesses interested in having their views heard have been offered a window of just four weeks in which to get their submissions filed with the deadline for entry earmarked for January 29.
All submissions will be placed on the review website.