Ed Husic (Chifley, Australian Labor Party, Minister for Industry and Science) Share this | Hansard source

I move:

That this bill be now read a second time.

Today I am proud to introduce the National Reconstruction Fund Corporation Bill 2022. The National Reconstruction Fund is a key commitment of the Albanese Labor government.

Introducing this bill today is a significant step in rebuilding Australia's industrial capability.

Another step in creating secure, well-paying jobs for Australians.

Australia can be a country that makes things again.

We should be a country that makes things again.

We must be a country that makes things again.

If we want to elevate our national economic, environmental and social wellbeing, build our strategic industry capability and drive economic growth, we need to partner with industry and researchers.

The pandemic highlighted the importance of an agile advanced manufacturing capability that can pivot to produce critical products, and meet our needs at a time when we need them most.

The National Reconstruction Fund Corporation will oversee one of the largest investments in our country's history, with $15 billion to invest in independently assessed projects that will support, diversify and transform Australia's industry and economy.

We can help build investor confidence and see the private sector—whether they be institutional investors, private equity or venture capitalists—work with us to turbocharge Australian industry, making sure Australia is a country that makes things now and into the future.

Australian industry wants to know that government recognises their efforts and recognises their contribution. They want to know their government is not only vocal in its support but backing that support in a concrete way, not just with a domestic focus but helping to make the most of opportunities that overseas markets present.

They need access to capital to back well-thought-out, deliverable business plans.

For too long we've seen good ideas leave our shores for lack of supportive capital. Our government wants this fund to help keep talent and businesses on our shores growing this nation.

Today we make clear our commitment to helping Australian industry rebuild, grow and evolve, to capture the strong opportunities for Australia to be a global leader in high-value manufacturing.

The pressure is on every nation to support sectors that are vital to their economy and sovereign capability.

The National Reconstruction Fund will do just that here in Australia.

We should rank among the nations with complex economies, advanced manufacturing and thriving technology exports.

The National Reconstruction Fund will build on our strengths and ensure long-term national resilience, supporting well-paid sustainable jobs of the future.

It will help Australian industry capture new high-value market opportunities in the economy of tomorrow.

Priority areas

The bill allows the government to set priority areas for the corporation to invest.

The seven priority areas we've outlined will be further defined through public consultation, including, of course, with industry, to draw out market gaps and investment opportunities.

Our national science agency, the CSIRO, played a crucial role in helping identify these priority areas, identifying the opportunities that offer the best chance for growth and jobs, including across advanced manufacturing, science and technology.

The priority areas reflect current and emerging industry strengths. They will help uplift our capacity to respond to domestic challenges and global opportunities.

These priority areas will build on and transform our strategic industry capabilities—including, of course, in manufacturing—and strengthen our ability to harness technologies to futureproof our prosperity and national wellbeing.

Government needs to be part of investing in these frontier technologies—sourcing them from overseas is not enough. We should be a maker, not a taker, of technologies and the ideas they sprang from.

The seven priority areas are: value-add in resources; value-add in agriculture, forestry and fishery; transport; medical science; renewables and low-emission technologies; defence capability; and enabling capabilities.

Let me go through them one by one.

We are going to invest in value-add in resources: like high-purity alumina from red mud and bauxite processing or lithium processing for batteries.

Our resources industry is a bedrock of our economic prosperity, and critical minerals will be vital to reaching net zero emissions. Through the National Reconstruction Fund, we want to support the creation of additional value onshore as high-quality inputs for domestic manufacturing and higher-value exports.

Investments that help sectors like food processing, textiles, clothing and footwear manufacturing will be covered through our value-add in the agriculture, forestry and fisheries sectors.

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