Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources. What is the Albanese Labor government doing to support value-adding resources on shore to deliver a future made in Australia and what is standing in the way of this support?

Madeleine King (Brand, Australian Labor Party, Minister for Northern Australia) Share this | Link to this | Hansard source

I thank the member for Swan for her excellent question. The Albanese government is absolutely determined to deliver a future made in Australia. Part of that future is the critical minerals processing industry. Make no mistake, the budget delivered by the Treasurer is the most significant budget for the future of the resources sector in this country in a generation. Traditional resources commodities like iron ore, coal and LNG are the backbone of our economy, and they will support the emerging critical minerals and rare-earth elements sector in the global drive to net zero. The $17 billion production tax incentive will drive critical minerals processing and value-adding in Australia. It is a serious and measured down payment on Australia taking up our responsibility to lead on critical minerals globally.

I might say, it has drawn some pretty special comments from those opposite. The shadow Treasurer has likened the production tax incentive to giving a dollar to every cafe owner for every coffee they produce. I've got to say, I have a lot of respect for the baristas in this country. They are great small businesses and are vital to national productivity. But I reckon producing lithium hydroxide, vanadium pentoxide, or nickel sulphate is a little bit more complex than producing a latte.

Indeed, the shadow Treasurer has missed the point entirely that a production tax incentive for processed critical minerals is a zero risk approach for Australia. If companies don't produce a value-added product, they don't receive a tax credit. But, if they do add value to products in Australia, it means that they have grown our sovereign capability, attracted investment, contributed to diversified supply chains, contributed to value-adding onshore and grown new jobs—all this in regions and industrial centres right across the country. What does the coalition say to all that? 'Absolutely not—we won't have any of that.' What does industry say? Rob Scott from Wesfarmers chemicals and fertilisers said this is:

… smart, targeted use of the tax system to solve big problems, leverage our competitive advantages and enhance Australia's prosperity.

What have other leaders said? 'We will support this measure.' That was Libby Mettam, the Leader of the WA Liberals. Another leader has said, 'It is essential not just for Western Australia and not just for Australia but for the western world to pursue production tax incentives like this.' Who was that? The member for Maranoa might be interested that it was Shane Love, the Leader of the Nationals in Western Australia.

There are more than a few members opposite who might want to be concerned about the bubble that the Leader of the Opposition and the shadow Treasurer have gone into in opposing the resources sector in this country. The member for O'Connor, the member for Durack, the member for Parkes, the member for Flynn and others all have critical mineral mines in their electorate and— (Time expired)