Katie Allen (Higgins, Liberal Party) Share this | Hansard source

I rise to speak in favour of the Industry Research and Development Amendment (Industry Innovation and Science Australia) Bill 2021, which amends the Industry Research and Development Act 1986, or the R&D act. I acknowledge at the outset the administrative nature of the bill and the legislated name change of the independent statutory body. But I feel the need to rise because I'm so passionate about this area. The new name, Industry Innovation and Science Australia, reflects the updated focus of the body on Australian industry and particularly the Morrison government's very clear approach to making Australian industry stronger and more competitive as we continue to recover from the impact of the COVID-19 pandemic. I think that, in the COVID-19 pandemic, we've probably never seen more pivoting going on in our country. When we look to R&D and innovation, we know that industry has partnered beautifully with the excellent medical research and health innovation that occurs in this country. I welcome the fact that this name change will help to better formalise this sort of arrangement. Words do really matter, particularly with relation to signalling to the wider community and stakeholders that industry is vital to our economic recovery. Industry and innovation complement one another, hence the rebadging of the body.

This legislation is not purely an administrative move. This change reflects the Morrison government's acknowledgment of the critical role of innovation and, more importantly, science, and it reminds us what science is truly about: knowing more, so that innovation can prevail in the products that can be consumed by the general populace that increase efficiency and quality of life for all. For this, there must be clear links between science, innovation and industry, and this bill allows and, in fact, encourages and fosters those links. I have spent my life in science and I understand how important it is that we bring that diversified mindset to the way that we solve problems for the world. The taxpayer knows this, and wants it and deserves it. As the government's leading strategic body on industry innovation, the remodelled IISA will play a pivotal role in guiding government policies and programs that will drive our economic recovery post COVID. Our government values the role business and research collaboration play, and we want to strengthen that collaboration.

If you look to the medical research institutes of Australia, you'll see that innovation mindset, and that is because they understand the resilience and resourcefulness that is needed in a constrained economic environment. We as a government know that, with the direct input of industry professionals, our economy will rebound even faster. It will enable us to grow stronger and to build higher-quality skilled jobs. This is becoming even more important in the 21st century, as we pivot again and again to a knowledge economy. We are determined to drive our innovation industry agenda forward with our $1.5 billion Modern Manufacturing Strategy. As a scientist, I welcome this strategy. I'm acutely aware that the strategy this government is taking towards innovation in industry is for industry by industry. This plan will see the creation and development of internationally competitive manufacturing businesses that will focus on six key areas, and these have been chosen because they are building on the shoulders of the greatness of these sectors. The six key areas are, of course, medical products, resources technology and critical minerals processing, space, defence, recycling and clean energy, and food and beverage production. These are the issues that are important for Australia's future. Each area has a road map allowing our country to strengthen its manufacturing capability.

The budget handed down this year by the Treasurer will see a restoration of business confidence and lower energy costs, as well as an aligning of research and research capabilities and programs to priority areas. The Modern Manufacturing Strategy we announced last year forms part of our JobMaker plan, which is already seeing real benefits flow through to our economic recovery. There is no doubt that this government's record of handling the economy, particularly in the recovery phase of the pandemic, has been first class. With prepandemic levels of unemployment rebounding, our economy is roaring back, and the government is only just getting started.

We cannot be complacent. Our manufacturers are still facing difficulties, but this partnership between government, industry, science and the research community will help solve the problems that they face and give them confidence to be competitive and productive. As I said in my first speech, we need to be a smart economy. Our businesses need skilled and productive labour, low energy costs, a fair industrial relations framework, a competitive taxation system, efficient regulatory mechanisms and favourable trade arrangements. The Morrison government promises to continue to provide this agenda to our hardworking Australians.

The Morrison government has made a clear commitment to ensure research and science are supporting industry growth. This is being done by a further investment in 11 rounds of the highly successful Cooperative Research Centres Projects. These funding grants for industry-led research collaboration really do kickstart these partnerships and are the glue between these collaborations. Through this scheme, businesses are funded to develop a product, service or process that will solve problems for industry and deliver real outcomes. Real outcomes are the focus of our government, as we believe plentiful, good-paying jobs in growing industries form the foundation of a future with a strong economy.

Successful grants that have gone to businesses and have already been undertaken for the cooperative research centres include those to businesses converting food into compostable stretch wrap; businesses upcycling waste including plastics into bricks, fuels and other materials; businesses that are increasing the affordability of gene therapy and vaccine productions; and even businesses that are making joint reconstruction surgeries more affordable and accessible. In medical research we often say, 'If you haven't published, then you haven't actually made an impact.' They've moved now to saying, 'If you haven't patented, you haven't made an impact.' But I'd go further and say, 'If you haven't made a product or a policy, then you haven't made an impact.'

These are just a few examples of businesses pursuing innovation, and that has the support of the Morrison government. Without this funding, these businesses may never have been lifted off the ground nor have been able to make the significant impact to the world we live in. Moreover, the government's research and development tax incentive allows companies to innovate by offsetting costs of crucial research and development. Over $2 billion has already been invested in businesses every year through this program, and Australian manufacturers have been the largest sector to have benefited from the scheme.

In addition to the change of the name, this legislation formalises other measures, including new members and a new mandate for those members of the new IISA. Last October, the government announced five new members were being added to the reinvigorated agency, including CEO of DuluxGroup, Patrick Houlihan, and Woodside Energy's Lauren Stafford. Patrick and Lauren have been appointed to the board for three years and will be joined, as new members of Industry Innovation and Science Australia, by fintech and consumers rights expert Scott Farrell, space technology entrepreneur Dr Alex Grant, and internationally recognised agtech innovator Sarah Nolet—and it's great to see gender equity in this area. This eclectic group of appointments brings a wealth of industry depth and experience but, importantly, fresh and modern thinking.

The Morrison government is putting industry firmly front and centre of its economic recovery plans. These are pragmatic, practical, sensible approaches to building jobs into our new future. We know that the jobs of tomorrow will be decided by the leaders of today. We know that the role industry plays in innovation and science is critical to the success both of those initiatives and of others. This legislation is necessary to ensure our economic recovery looks to the future through the lens of innovation and the role industry plays in revitalising our economy.

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