Anne Stanley (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes that:

(a) the COVID-19 pandemic showed us how vulnerable Australia's supply chains are;

(b) revitalising Australian manufacturing will diversify our economy and create sustainable and secure jobs;

(c) the Government is delivering on its election promise of creating a $15 billion National Reconstruction Fund (NRF); and

(d) the NRF will invest in the priority sectors of transport, medical science, renewable and low-emission technologies, value-add in agriculture, forestry and fisheries, value-add in resources, defence capabilities, and enabling capabilities; and

(2) acknowledges that the NRF will support:

(a) the development of strategically important industries and shore up supply chains;

(b) targeted investment in manufacturing capability to create well-paid jobs for Australians including in regional communities; and

(c) the diversification and transformation of Australian industry and the economy, to take advantage of emerging opportunities, including the global transition to net zero.

Today I'm proud once again to be talking about how the Albanese government is delivering on yet another election promise. The COVID-19 pandemic revealed the clear vulnerabilities in our supply chains, vulnerabilities that were in part the result of our declining manufacturing industries and a lack of planning to prepare our economy for the challenges of the future. That's why, in the October budget last year, my colleague the honourable member for Chifley announced the formation of the National Reconstruction Fund. It's a $15 billion fund that will invest in improving Australia's manufacturing capabilities, diversifying Australia's economy and creating well-paid Australian jobs.

The extraordinary and persistent damage that COVID-19 inflicted on every level of our economy—the hundreds of billions of dollars lost and the devastation on our supply chains—has been discussed in depth and at length. It's always been a goal in my life to leave things better than when I found them, and the only way to do that and repair the damage to our economy is to build it back better than before, to make it more resilient and durable for the future. The state that it is in is simply not good enough. The number of manufacturing jobs has been on the decline for the last 20 years, including the loss of the automotive industry. As my colleague the Assistant Minister for Trade and Assistant Minister for Manufacturing put it, we are last in the OECD in manufacturing self-sufficiency. A house is only as good as its foundation, and right now we're on shaky ground.

That's why we're making the National Reconstruction Fund one of the biggest peacetime investments in Australian history, not just for the Australian economy or for Australian businesses but for Australian workers as well. Today, 85 per cent of all manufacturing jobs in this country are full time and secure. This is the certain and stable employment people are looking for. That's why the National Reconstruction Fund is looking at investing in a wide variety of manufacturing industries, such as $3 billion for Australian renewables and low-emission technologies; $1.5 billion for Australian medical manufacturing; $1 billion each for Australian advanced manufacturing, critical Australian technologies, and value-adding in Australian resources; and $500 million for value-adding in Australian agriculture, fisheries, fibre and food.

We must diversify our economy because a diverse economy is a resilient one. We've been listening on this, and, as part of the consultation process, we've heard from individuals, industries, communities and unions. We've also heard from state governments, regardless of politics, because the time has come for us to realise the potential of our country together. The National Reconstruction Fund will help us achieve that. It will achieve it through a range of finance options, including loans, equity investment and guarantees. This means the fund will invest and have a return so that it can reinvest again and again. It will be Australians who will reap the benefits. This isn't about bringing in business from overseas; it's about building up businesses that are starting and working here.

We are in a great position in Australia to take advantage of the transition to a net zero economy, and I want Australians to be able to make the most of this opportunity. There are opportunities to create lithium batteries here for the growing electric vehicle market, instead of sending our lithium overseas so somebody else can make them. There are opportunities to grow the potential of hydrogen energy. There are opportunities in large-scale wind and solar farm investment commitments, which grew nearly 50 per cent in the last year alone, showing that the desire and the money is here. It is time for Australia to seize these opportunities. I think it's important to emphasise this, because we've talked about the dire importance of a net zero economy and we've talked about how necessary and critical it is for our environment. I want to make it clear, however, that this is an opportunity we can all benefit from, by undertaking a transformation that will create more jobs—sustainable, well-paid Australian jobs.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

Is the motion seconded?

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Michelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | Link to this | Hansard source

Firstly, I wish to thank our nation's manufacturers who helped keep our country moving forward during the COVID-19 pandemic. Manufacturers across Australia rose to the challenge of continuing to deliver their product while unlocking further potential to overcome the obstacles they faced. Regional Australia continues to be the backbone for manufacturing, with much of our success derived from the abundance of natural resources. Figures show that around 60 per cent of Australia's exports are derived from regional Australia. In my electorate of Capricornia there are many great manufacturing businesses that make a valued contribution to the local economy, like fabricators Dobinsons Spring & Suspension, who have been manufacturing vehicle parts for 70 years, and Plane Creek Sugar Mill in Sarina, who have crushed sugarcane since their inception in 1896 and now produce 180,000 tonnes of sugar per year. These are some of the great manufacturing businesses in my electorate, and they mirror similar manufacturing success stories right across Australia. It's growth like this that we all want to see continue well into the future.

Growth of our manufacturing industry and sovereign capability isn't something we should be advocating for; it's a necessity for the future of our nation. I doubt that anyone in this room would disagree with me. The Modern Manufacturing Strategy developed under the coalition government delivered $2.5 billion in investment to drive growth and innovation right across the manufacturing sector. This strategy focused on creating the perfect economic conditions required for business to make science and technology work for industry, focus on areas of advantage and ensure supply chains are more resilient. This is everything that the National Reconstruction Fund will decimate. The National Reconstruction Fund will undermine investment certainty in existing manufacturing areas of priority and erode investment confidence.

I find it extremely disappointing that the Albanese government is doing dodgy deals with the Greens party to push their agenda. It's an agenda with a poorly designed funding model in which there's a shift from competitive grants with robust processes to the government acquiring equity and loans. Government equity and loans are far less accessible than grants and only provide more barriers to manufacturers. This design is purposefully restrictive. They did a deal at the eleventh hour to rush through a flawed piece of legislation that fails to address the significant issues that our manufacturers need this government to show leadership on: high energy prices, disrupted supply chains and acute labour shortages.

Heavy industries remain a key feature of regional Australia. Many regional cities are based around the high-quality gas, coal and other natural resources that are highly sought after by countries right across the globe. In Queensland alone, $94.6 billion is delivered back into the economy from these industries that Labor want to stifle.

The Labor government are preaching that new technologies and net zero are our future. Australia is on the precipice of a key-resources mining boom to meet the high demand for critical minerals that are required when creating low-emission technologies, battery production and electric vehicles. An electric car requires six times the amount of minerals than a regular car. A wind turbine requires several more times the amount of minerals required for a gas- or coal-fired power station. More than 220 tonnes of coal is needed to build a wind turbine. It is a rather inconvenient truth for climate activists that, in order to decarbonise our nation, we need more mining and manufacturing that is based around coal and gas. We need to support the industries that will make this happen. We are almost at the one-year mark of the new government, and, sadly, there has been absolutely zero progress on supporting the manufacturing industry.

If you are able to read the fine print on the National Reconstruction Fund, it's plainly obvious that the only priorities you will see are for the Labor government to give jobs to their union mates and create an election slush fund. The Australian Council of Trade Unions and the Australian Manufacturing Workers Union have demanded that any business who wishes to access the fund have union agreements in place and include union representatives on the board. This is just another case of unions feathering their own nest and not having the manufacturing industry's best interests at heart. The legislation put forward by the Albanese government will open the door to allowing the disgraceful behaviour of the unions to continue.

If you ask the manufacturing industry, like me they don't have high hopes for this fund, and nor should they. Labor's record on manufacturing is woeful, and it's concerning to think how much damage those opposite can and will do to the industry. I won't stand idly by and watch it happen. I'm going to be pushing to make sure the voices of Capricornia and of national manufacturers be heard and given the support they need to prosper.

David Smith (Bean, Australian Labor Party) Share this | Link to this | Hansard source

I rise today to speak in favour of this motion moved by the member for Werriwa, and I thank her for moving this motion. As someone who was an advocate for science and engineering for more than a decade before coming to this House, I know what a difference this will make. This contrasts with the previous government, which abandoned manufacturing in this country and have no credibility in these policy areas.

Opposition Members:

Opposition members interjecting—

David Smith (Bean, Australian Labor Party) Share this | Link to this | Hansard source

Well, support this legislation and we'll be doing a hell of a lot better. The National Reconstruction Fund Corporation will support, diversify and transform Australia's industry and economy, helping to create secure, well-paid jobs; securing future prosperity; and driving sustainable growth. It also represents this government delivering on a $15 billion key election commitment. The NRFC will invest across seven priority areas of the economy: renewables and low-emission technologies, medical science, transport, value-add in agriculture, forestry and fisheries, and value-add in resources, defence capability and enabling capabilities—and I will expand on these areas later.

The NRFC is modelled on Labor's successful Clean Energy Finance Corporation. It will be governed by an independent board that makes independent investment decisions, and it will be able to invest through a range of financing, including loans, equity and guarantees. It will be held to a high level of transparency and accountability. Under this legislation, there will be no colour coded spreadsheet in sight, no sports rorts and no car park rorts. Investment decisions will be free from political interference.

As a corporate Commonwealth entity, the NRFC will be subject to the requirements of the Public Governance, Performance and Accountability Act 2013 in relation to corporate governance, reporting and accountability. In keeping with our government's commitment to transparency, the corporation will publish investment reports quarterly. It will also provide detailed financial and operational information in its annual reports to parliament. The investments of the NRFC will be guided by an investment mandate issued by the government. The investment mandate will set out clear directions to the board regarding risk, return, investment governance and core government policy priorities.

Australian manufacturing has suffered from nine years of LNP mismanagement. Those opposite had eight—no, sorry, nine—industry ministers in nine years and have left Australia's manufacturing industry in tatters. It was never a priority. The recent pandemic has demonstrated the need to have secure supply chains. The NRF will grow Australia's capacity to manufacture here so that when the next global event paralyses global supply chains Australia will be ready.

I'd like to take this opportunity to remind the chamber of the seven priority areas that the NRF will be targeting. The NRF will value-add in resources, expanding Australia's mining science and technology and ensuring that a greater share of raw materials extracted is processed domestically. It will value-add in the agriculture, forestry and fishery sectors. In transport, it will develop capabilities in transport manufacturing and supply chains, including for cars, trains and shipbuilding. In medical science, it will leverage Australia's world-leading research to provide essential supplies, such as medical devices, personal protective equipment, medicines and vaccines. In renewables and low-emissions technologies, it will pursue opportunities, including for components for wind turbines, the production of batteries and solar panels, and new livestock feed to reduce methane emissions. In defence capability, it will maximise the sourcing requirements from Australian suppliers. In enabling capabilities, it will support capabilities across engineering, data science and software development, including in areas such as AI, robotics and quantum sciences.

The Albanese government continues to help companies create secure, well-paid jobs for Australians. This government is laying the foundation for our future prosperity and wellbeing as a nation that makes things here and sells them to the world. The NRF will finally unlock Australia's manufacturing potential. I commend the incredible work that the Minister for Industry and Science has done with this policy, and I again thank the member for Werriwa for moving this important motion in this chamber.

Zali Steggall (Warringah, Independent) Share this | Link to this | Hansard source

I thank the member for Werriwa for bringing forward this motion. Revitalising Australia's economy through the National Reconstruction Fund is essential to safeguarding our economic future. As acknowledged by the government, COVID-19 exposed Australian supply chain vulnerabilities and decimated R&D budgets across businesses, universities and industries. In fact, at only 1.8 per cent of our GDP, we have one of the world's lowest rates of R&D investment. That was the case even before COVID hit, and this figure is steadily declining. This should be of concern to many people in this place. Australia is also facing a skills shortage, particularly in technology and innovation.

Australian innovation has revolutionised people's lives. In my electorate of Warringah, there are plenty of examples of innovative enterprises. Loam Bio shows that innovation is leading from Warringah. They're transforming agriculture to enhance crop yields and increase the carbon sequestration of soil. V2food is working to bring down our average meat consumption. Aviation H2 is working on the development of green-hydrogen powered planes. Lakeba's Future Hub shows how we can excel in digital technology. We have all of these levels of innovation in Australia. Unfortunately, whilst we have some great individual stories, as a whole, innovation is declining, and we're risking being outperformed in many sectors by our economic competitors. Our economy should be dynamic and pioneering, based on growth industries and empowered people with the right skill sets and visions for the future. The NRF supports this vision, which is why I supported the principles of the NRF from its introduction, but we must ensure that the NRF is utilised in a way that maximises Australia's opportunities and provides real value-add to priority sectors.

We know COVID-19 was extremely difficult for our economy. Although the Australian people and Australian businesses showed remarkable resilience during that time, we have an opportunity now to build back better. Investing in a new economy must be based on principles of sustainability and a circular model to keep in line with the global transition to net zero. The National Reconstruction Fund's promise of investment in renewable and low-emission technologies must be upheld to ensure our expanding economy stays on target to reduce emissions and is a global player in that net zero world.

For that, we have to address hydrogen. Australia is engaging in the biggest transformation since the industrial revolution—that's the transition to net zero. It's important to look at this transition as a massive opportunity, one which can build new, vital sectors for our economy. Our future prosperity depends on Australia developing an energy industrial complex in which we capitalise on our natural advantages to develop a clean-energy export market. Countries who are able to decarbonise their supply chains will gain comparative advantages in the international economy of the future. Green hydrogen has the potential to be the tipping point for Australian manufacturing, given its ability to decarbonise difficult-to-abate industries. But we are falling behind. There's a race on—let's be very clear about that—and we are falling behind.

Just today in the Australian Financial Review it was reported that Australia is falling behind Africa in the race to develop green hydrogen. The race is about which is going to be the jurisdiction that is most appealing for those huge amounts of investment. When we start talking to the diplomatic community, they are aware of all those competing environments. The USA, Europe and the gulf nations are moving quickly to ensure market dominance. The impact of the US Inflation Reduction Act alone, which was passed after the election, could see our export potential for green hydrogen fall by as much as 65 per cent, for that has now been matched by investment in Europe, leaving Australia even further behind. We simply don't have time to wait and see. The government must be proactive in areas like green hydrogen. We need to see that in the next budget. We must invest to capitalise on our natural advantages when it comes to emerging industries like renewable hydrogen production.

So I urge the government to use the National Reconstruction Fund to invest in sustainable, resilient supply chains, to expand innovation and to create secure jobs for Australians. We need to remember that what is better for the planet is and will increasingly be better for business and better for Australia's future.

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I'd like to thank the member for Werriwa for moving this motion. Any time spent speaking about the benefits of the National Reconstruction Fund is time well spent indeed, especially time spent speaking in this place about boosting Australia's manufacturing industry.

I'll soon start to sound like a broken record because of my passion for manufacturing jobs, but it exists for a number of reasons. In large part, it exists because of three words—and I would suggest the member for Capricornia take notes! General Motors-Holden. Whilst not the only company providing manufacturing jobs in the northern suburbs of Adelaide at the time, it provided a great deal of additional work for component manufacturing and all the way down to jobs for the trucks that came down to the plant to sell lunch to the workers on site. On one fateful day, Joe Hockey dared GM-Holden to leave, and—queue shock—they left. The company closed down their plant. Sons had followed their fathers in working there. They closed up their operations. It beggars belief that you could be shocked when a company does what you publicly dared them to do. But I digress. The closure of Holden is still felt by those in Spence.

I'd like to hope that those opposite learnt their lesson. After all, at the time Joe Hockey made that fateful statement, a large number of those opposite were not yet members of this place. Yet, during the debate in this place concerning the National Reconstruction Fund Corporation Bill, you could see that many on the other side of the chamber still had a lot to learn. Using the tried and true libertarian line that the government shouldn't be picking winners and losers was a path well travelled. I can only look at the thousands of people in Spence who were directly and indirectly impacted by Joe Hockey's act, daring GM-Holden to leave, or the omission—by withdrawing government support to the company. The government made an affirmative decision to pick a loser, and it's one the north will always remember. Those opposite are big on values statements. They denounce big government except when they are part of one.

Thankfully, the National Reconstruction Fund can put jobs on the menu again—good, well-paid manufacturing jobs. The National Reconstruction Fund provides for $15 billion to be put toward national priorities, such as the renewables and low-emissions technology sector, the medical manufacturing sector, value-adding in the resources sector, critical technologies, advanced manufacturing and the agricultural, forestry, fisheries, food and fibre sector.

One sector worth mentioning is the medical manufacturing sector. The COVID-19 pandemic has made it ever so apparent that when the attitudes of now, thankfully, former governments were not to support our manufacturing industries, it becomes very hard to un-ring that bell. It is very hard to bring things back online and upscale with very little notice—plant, equipment and personnel—in the event of an emergent increase in demand for goods. This is as true for cars as it for medical masks or other kinds of personal protective equipment. While the demand for PPE skyrocketed locally, nationally and globally, when shortages existed within our aged-care sectors and even within our hospitals, we were reliant on seeking additional supplies of masks from abroad at a time when countries were attempting to shore up their own domestic supplies and stockpiles.

Instead, how lucky we are, as Australians all were, that a coterie of Liberal Party donors and mates all decided to pivot their careers in the moment. It must be that agile entrepreneurial spirit that they all talk about on that side of the chamber! A lot of them certainly got themselves into the import-export business with PPE. But, as we all know, it certainly would have been much easier to have been able to upscale our industry at home with a running start. Those opposite may not wish to suffer a country with the government picking winners and losers in the market, but they certainly appeared time and time again to tolerate, if not cultivate, crony capitalism. It may have been a tender point to many on the other side of the chamber, but this issue may have been slightly alleviated by competitive tender processes.

I can think of a number of songs to add to the soundtrack of the previous government, including one by the Chaser, but one that is a little bit out of left field would be 'Love Me Tender' by Elvis Presley, because they did loves themselves a tender process, so long as it was closed.

Russell Broadbent (Monash, Liberal Party) Share this | Link to this | Hansard source

It's not often I agree with the member for Spence—I've listened to his speeches!—but I couldn't agree more in regard to the car industry in this country, especially in relation to GM,. They had been here since 1949. They didn't want to leave. We sent them packing. I can't go into the great difficulties that caused because it will take the whole five minutes, but I actually believe that we will manufacture cars in this country again, either out of necessity or out of our own ingenuity. I have a great belief in Australians. We still have the capability to build cars. We still have the capability to design cars. We still have the ingenuity and the determination to make different products that we can export around the world. We need to become a country that does that.

We heard about hydrogen from the previous speaker. My problem today is that I'm in the moment, and in the moment, as the members of this parliament know, one of the major inhibitors to what we're doing as a country is our supply-chain issues. There cannot be a better example of supply-chain issues than around shortages of antibiotics, for instance, in this country. In Australia there are shortages of antibiotics. There are shortages of amoxicillin. There are shortages of warfarin, which a lot of people rely on to control their blood pressure. There are shortages of the ingredients of antibiotics that your pharmacist would use to mix you the drug themselves. Some pharmacists still have the ability to do that. They'll mix you the drug themselves so you can be protected. If they can't get hold of it from their supplier, they will make it for you. It may take a little bit longer, but at least you can be serviced.

We cannot afford, in this country, the issues supply-chain problems cause. It's been said: 'It's manufacturing. It's unexpected increase in demand.' No, the demand has been pretty consistent all the way through, unless the nation's getting sicker and sicker by the day. I didn't believe that to be the case, perhaps until now, where we are being confronted with hospital ramping right across the country. All of our hospitals are filled, and no-one's asking any questions. Why is this happening? Why do we have shortages of all these antibiotics? Why do we have shortages of warfarin? Surely it can't be that somebody's holding something back. There's no reason to; they want to sell their product.

Now we're talking about things like paracetamol—that you should stock up on paracetamol because the government is going to start to ration paracetamol. A lot of people rely on paracetamol to get through the day, for whatever reason for their health and wellbeing. I know that each government that I've seen come in—and I've seen a lot of governments come and go—has had a different view on the area of manufacturing and how they will go about it. I see this program as, really, the government renaming an old government program that was of great benefit to my electorate in supporting new innovations, supporting jobs and supporting the growth of industries, especially West Gippsland sawmillers, who became West Gippsland trusses and then West Gippsland manufacturers.

For all of those issues, whenever government has come in and offered support, that has grown business and has made a difference. I believe the government is determined in this area to make a difference. However, we need to address these critical shortages now, before it becomes a crisis, because, with the way we're going with the shortages of pharmaceuticals, this could become a crisis overnight, right across Australia. That's a crisis we can't afford. We can't afford it for our belts, for our older people especially and for our most vulnerable and their children. It's up to us. The buck stops with us—remember that. We're the last port of call. The buck stops here in the federal parliament. It's got nowhere else to go, only here. So these shortages have to be addressed and addressed now.

Luke Gosling (Solomon, Australian Labor Party) Share this | Link to this | Hansard source

The COVID-19 pandemic showed us how vulnerable Australia's supply chains really were. It taught us that revitalising Australian manufacturing was so important because we had to not only diversify our economy and create sustainable and secure jobs but guard against future shocks. Our government was elected last year on a mandate to drive the transformation of Australian industry and to revive our ability to make world-class products in Australia—sophisticated products, advanced manufacturing products. Manufacturing matters because it creates full-time, meaningful work and secure jobs, and insures against those shocks.

We saw through the pandemic that our supply chains were under huge pressure. Products we expected to have were hard to obtain. We need to revitalise manufacturing after years of neglect—let's be honest—from those opposite, the coalition government. They had nine industry ministers in nine years, and, as a result of that lack of continuity and a lack of genuine desire to have a manufacturing industry that is sophisticated and world-class, the manufacturing industry is in tatters. As the member for Spence quite correctly articulated, they goaded the car manufacturing industry in Australia, in South Australia, to leave the country, and it did. As the member for Monash—who I've got a lot of time for—reminded us, General Motors-Holden had been making motor vehicles here since 1949. When I saw former treasurer Joe Hockey in the parliament last week, I was reminded how Holden were goaded into leaving. Back then he was on the cigars, celebrating, when it was such a shameful period of federal government in this nation.

Thankfully, we now have a Labor federal government which believes in Australian manufacturing industry, and that's why we are delivering the $15 billion National Reconstruction Fund, a key platform to support, diversify and transform Australia's industry and to create those sustainable, well-paying jobs that I just mentioned. The NRF will provide finance—including loans, guarantees and equity—to drive investments in seven priority areas of the Australian economy. These will leverage Australia's natural and competitive strengths, support the development of strategically important industries and shore up our supply chains. I think it's worth mentioning the priority areas, which are: resources; the agriculture, forestry and fisheries sector; transport; medical science; renewables and low-emissions technologies; defence capability—so important in this day and age—and other enabling capabilities.

Our government has previously announced targeted investment levels for specific priority areas of up to $3 billion for renewables and low-emissions technologies; $1½ billion for medical manufacturing, which is where we have so much potential; and $1 billion for value-adding in resources—so not just digging it and shipping it, but doing more processing here. There's $1 billion for critical technologies and $1 billion for advanced manufacturing, such as what we will be doing up in Darwin, which is building, constructing, aircraft—amphibious aircraft. And that company, AAI, has already got presales coming in. But that would have been unthinkable under the former government, the same mob who chased the advanced manufacturing sector in motor vehicles out of the country. There's $500 million for value-adding in agriculture, forestry, fisheries, food and fibre, which is so important to our farmers.

I really look forward to this fund getting to work, and I congratulate the minister for the work he has done to date. We're looking forward to hosting him next month, up in Darwin.

Australia is rich, Deputy Speaker Sharkie, as you well know, with critical resources. I also note that next month we will have an ASPI critical minerals conference up in Darwin. The Northern Territory has abundant critical minerals. They're important for our transition to renewable energy, and they go into things like phones and will go into EVs into the future. So there will be car manufacturing in this country again, under our government.

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

I thank the member. There being no further speakers, the debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.