Sophie Scamps (Mackellar, Independent) Share this | Link to this | Hansard source

I rise today in support of the Future Made in Australia Bill 2024 and the government's Future Made in Australia policy agenda. The world is at a tipping point. We either face up to the challenge created by climate change, and fast, or we submit to a future of heatwaves, extinctions, rising sea levels, higher rates of mortality, food, water and fuel insecurity and vast swathes of the world's population becoming climate refugees in search of habitable living conditions. We understand the crisis and we understand its causes. We also understand how to fix it. Quite simply, the time has come to end our addiction to fossil fuels as the primary source of energy for our country and the foundation of our economy.

An addiction is something that does us harm, and fossil fuels are harming us all, most of all the future of our children. Whether we like it or not, the world is transitioning away from fossil fuels. Australia, too, must transition to a decarbonised energy source. It is the clever thing to do for two simple reasons: for the safety and security of our planet and to create a strong and vibrant Australian economy based on technology of the future, not technology of the past which is outdated. Building green manufacturing and value-adding capacity is the way we as a nation will create the high-income, highly skilled jobs of the future. It is the way we will be able to maintain our high standard of living.

If we do not transition, if we do not evolve and adapt to the new future by investing in and building our green manufacturing capacity, then, quite simply, we will be left behind other nations that do. We will be left behind to become a 'dig it and ship it' country that has to buy back products made with our raw materials at high prices. A domestic net zero economy here in Australia will reduce global emissions by just over one per cent. But if Australia successfully seizes the economic opportunity to export zero-emissions minerals, metals and other goods, not only would this create a sustained economic boom, improving our national prosperity and living standards, but it also has the potential to reduce global emissions by an additional six to nine per cent. I will repeat that: Australia has the potential reduce the world's emissions by up to 10 per cent. But it means acting and investing in this future right now.

Right now, with the policies we make in this House we are choosing the type of future we want and Australia's role in creating that future. When I speak to the people of Mackellar, one message that is clear and resounding is that the people have had enough of short-termism. They want visionary leadership. They want us to envisage a bright future and then make long-term policies and take steps that help us achieve that vision. So we must grab this opportunity and entered the new era boldly—an era that will be known as the green industrial revolution. We have a win-win opportunity to play an outsized role in the conservation of our planet, and at the same time as building a future-focused, resilient, vibrant economy here in Australia. That's what the Future Made in Australia is setting Australia up to do. It's sets up the legislative framework and institutional infrastructure necessary to support the transition to a clean, future-focused economy.

As stated by the Superpower Institute, the Future Made in Australia framework is 'a critical step to unlocking green export opportunities that will form the basis of future economic prosperity and underpin a key part of global decarbonisation efforts'. But, like most startups, new technologies and industries typically require early financing and support because of large upfront capital costs. Upfront costs of innovation and infrastructure in this area are too large and risky for individual early movers. That's why upfront investment from government is necessary to help build the industries and diversify our economy in a way that will sustain us into the future.

As a result of the government's $22.7 billion Australian manufacturing scheme, giant superannuation funds have declared they are eager to start spending on local projects. This is exactly what we want to happen. We want government investment to attract private capital. Institutional investors with hundreds of billions of dollars under management have come out in support of the scheme, stating that public financing can unlock the private capital needed to grow green industries to slash emissions, boost jobs and hit the nation's climate targets. The head of external relations for global infrastructure investment fund IFM Investors, with more than $200 billion under management, is quoted in the Sydney Morning Herald as saying:

Unlocking investment at-scale into Australia's energy transition can only happen if industry and government work together to achieve the right policy settings.

Jeff Brunton, the head of portfolio management at Hesta, a fund with around $85 billion under management, said:

Initiatives like Future Made in Australia help Australia compete for its fair share of global capital increasingly looking to invest in the transition.

The experts are aligned on what should be the fulcrum of the Future Made in Australia program, and that is comparative advantage. We all know where Australia's comparative advantage lies—in our abundant natural resources: specifically, wind, solar, critical minerals and our wide, open spaces. These comparative advantages mean that it is possible for our future renewable energy supply to far exceed our demand, opening up the opportunity for an enormous renewable energy and green product export market.

The way to achieve this, according to the Superpower Institute, is to embed renewable energy in energy-intensive value-added products such as green metals, fertilisers and fuels. In other words, Australia can make products with clean energy and then export them to the rest of the world to use so that countries without renewable energy capacity don't have to use polluting energy sources to create these products for themselves.

Just last week, WWF released a report about green iron showing that, through its production, Australia can decarbonise Asia's steel production. Steel is responsible for nine per cent of global greenhouse gas emissions. As a leading world supplier of iron ore, steel's essential ingredient, Australia can and, quite simply, must play a significant role in decarbonising the global steel industry.

Major Asian steel producers are looking to Australia as a supplier of green iron, but we have competition from other countries who are rapidly building their own green iron industries. Investment and policy support are vital to give Asian customers the confidence to choose Australia as a reliable supplier of green iron. The Future Made in Australia program provides the framework to deliver those clear and certain policy investment conditions. The need for Australia to engage in the green industrial revolution is absolutely clear, as is our ability to reap enormous benefits from it.

I am not, however, without concerns about aspects of the Future Made in Australia legislation currently before the House. I will now outline some of these concerns. Firstly, I agree with the Environmental Defenders Office submission to the inquiry into this legislation that Australia's emission reductions targets and our obligations under the Paris Agreement must be incorporated into the legislative objects. Even more explicitly, the legislation needs amending to make clear that no Commonwealth funds or investments can be used to support fossil fuel projects or infrastructure or any related industry, and this would include carbon capture and storage. This should be clear and uncontroversial.

Secondly, I'm concerned about whether the investments envisaged under the Future Made in Australia will be sufficiently targeted to achieve its goal, which is a more diversified and productive economy powered by clean energy. As currently drafted, the bill is too vague as to which sectors might be eligible for Future Made in Australia support. To fix this, the objects should be amended to incorporate the urgent need to decarbonise Australia's energy and industrial systems.

Thirdly, there is a need to mandate the assessment process. Surely projects should only be eligible for these Commonwealth Future Made in Australia funds if they are part of a sector that has been subject to an assessment which has concluded that it is an appropriate sector for support. This is a necessary guardrail to ensure that taxpayer money is being used only for sunrise industries where it is necessary to bridge the green premium, not for sunsetting industries where government investment will only extend projects' life spans and harmful effects. A reasonable assessment process has been formulated, but, in the current form of the legislation, it is entirely at the discretion of the government as to whether it is applied or not. Surely it would be most appropriate for it to be used every time. So I will be supporting the amendment from my crossbench colleague the member for Curtin, which prohibits Future Made in Australia support unless a sector assessment recommends the relevant sector for that support. Observers should be able to assess how the government has come to a conclusion about our comparative advantages and about which industries we are subsidising and why.

Fourthly, given that the world is rapidly changing, it will be necessary to reassess which sectors are included in the legislation every five years. Investments that make sense now may not make sense when we know more about which technologies are likely to dominate and what other countries are doing. Having a formal requirement to reassess every five years will at least provide a backstop and ensure Australia remains on the right track.

Fifthly, while decision-makers under the Future Made in Australia legislation will be required to consider community interest when making decisions, more could be included. First Nations communities deserve more than 'collaborative engagement', which is the requirement as currently drafted. The community benefit principles should allow First Nations people to participate in and benefit from Future Made in Australia projects. Nature positive outcomes and greenhouse gas reductions should also be incorporated into the community benefit principles.

Finally, I urge the government, as I so often have in this place, to ensure that all Australians reap the benefits of what are, after all, their investments in these Future Made in Australia projects. If taxpayer money is being invested into the establishment of new industries, especially when those industries are based on the exploitation of our natural resources, then we must share in the rewards. Let's not make the same mistake successive governments have made in our resource sector by allowing foreign companies to be the big winners from what is dug out of our ground by giving away our resources, often for free.

Let's ensure we are the best ancestors we can be by not only fixing the climate crisis but by establishing a sovereign wealth fund to ensure our future generations are provided with services like high quality health care and education and high quality disability and aged care.

Australia could not be in a better position to prosper from the green industrial revolution. If it's done properly we can not only flourish domestically from the transition but we can also lead the world. We can help our neighbours and trading partners to decarbonise and we can make the future brighter—environmentally and economically—for generations of Australians to come. The role Australia can play in the global transition is real and it is urgent. It is also achievable. We choose our future.

Mary Doyle (Aston, Australian Labor Party) Share this | Link to this | Hansard source

I'm proud to rise and speak today in support of the Future Made in Australia Bill 2024. Australia is a very fortunate country. We have incredible natural resources, a robust economy, a thriving business sector, a highly skilled workforce, strong international trading relations and a stable government. With this bill, the Albanese Labor government will be able to promote jobs, security and prosperity for all Australians in this increasingly changing world.

Of course, there are several factors contributing to this change. There's the transformation of industries in this digital age, complex economies and, indeed, our own lifestyles as we make our way towards net zero. However, whilst we navigate this era of fast paced change, there are opportunities afforded to us. The Future Made in Australia legislation can make sure we meet these opportunities head-on rather than taking a backward step.

The Future Made in Australia plan is a big step forward for our country. It is visionary and progressive. It recognises our future growth prospects lie at the intersection of our industrial resources, skills and energy bases and our attractiveness as an investment destination. It demands rigour in government decision-making, which will give investors confidence and clarity.

While the plan is comprehensive, it also has the simple aim of making the most of our resources, which belong to all of us, and to encourage more manufacturing of things here. At the end of the day, this bill is an action plan for a more economically prosperous, secure and independent future for every one of us and for future generations. Who could say no to that?

For too long, our manufacturing industries in Australia have been in steep decline. The previous government failed dismally to address this decline. In fact, they actually made things worse. Remember former treasurer Joe Hockey in this very place challenging Ford and Holden—the last two Australian car manufacturers—to leave our shores. And guess what. That's exactly what they did. They up and left. Great work; well done, guys.

The former government left a policy vortex in this space. They did a fat lot of nothing for this country in terms of industry development—zero, zilch, nada, nothin'. Just like their so-called great economic plan for our future, it was based on an idea—a thought bubble, if you will—which never, ever materialised. Sorry; that was apart from the 'back in black' coffee mugs. By the way, where are those mugs? I'd love to get my hands on one of those since we are actually back in the black now—for real this time. But I digress.

The bill we are currently debating in parliament has three key components. The first component is to embed the government's new National Interest Framework, announced at budget time. This will help identify sectors where Australia has a genuine comparative advantage in the net zero economy or an economic security imperative and better align economic incentives with the natural interest. Legislating this framework will provide the investment sector with clarity and confidence.

The second key component will be establishing a robust sector assessment process. This component will be transparent, made at the request of the Treasurer and implemented by Treasury. These assessments will be made public so that Australians can gauge whether an area of the economy is aligned with the National Interest Framework. The assessment process will also inform government as to any barriers to investment.

An important part of the National Interest Framework is establishing a set of community benefit principles, which brings me to the third key component. The community benefit principles make sure that investments work for local communities, for local businesses and for local workers.

A future made in Australia requires investments that promote and provide safe, secure and well-paid jobs which have good conditions, and this means developing a highly skilled and inclusive workforce and broadening opportunities for workforce participation, particularly for some underrepresented groups such as women, First Nations groups and remote communities, as well as those communities directly affected by the transition to net zero. In addition to this, domestic industrial capabilities will be strengthened through more robust local supply chains.

The bill also enables the identification of Future Made in Australia supports, which are the government investments to which the community benefit principles apply. The bill identifies two initial supports: the Future Made in Australia Innovation Fund and certain investments referred to government for funding consideration under Export Finance Australia's expanded National Interest Account. Other Future Made in Australia supports can be added by the minister under the rules.

The Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 outlines specific changes to enable the measures mentioned. Firstly, the government is amending the Export Finance Australia legislation to encourage and facilitate private sector investment. This includes ensuring the availability of support for existing funds and programs that cannot fully support a project. The bill also enables Export Finance Australia to focus on domestic investments that boost the net zero transformation stream and the economic resilience and security stream. Export Finance Australia will carry out these operations while continuing to bolster other national interest programs such as the Critical Minerals Facility, the Southeast Asia Investment Financing Facility, the Defence Export Facility and the Australian Infrastructure Financing Facility for the PACIFIC—all important projects.

The second schedule of this omnibus bill makes amendments to the Australian Renewable Energy Agency Act 2011. These amendments will ensure that the Australian Renewable Energy Agency, also known as ARENA, can support the Future Made in Australia strategy. ARENA first received statutory funding back in 2011. I should mentioned now that it was back in 2011 that ARENA had bipartisan support. Despite the Abbott-Turnbull-Morrison-led governments and their continued attacks on ARENA, in particular from the Abbott government, it managed to survive and give those three governments their only claims to have responded in some tiny way to climate change, though history shows that both the Turnbull and Morrison governments merely chronically neglected ARENA rather than outright attack it like the Abbott government achieved.

Resulting from these omnibus changes, ARENA will have a limited special appropriation within the legislation. The agency's parameters will be extended to include a fourth objective, which is to contribute to the reduction of global greenhouse gas emissions in accordance with the Paris Agreement. ARENA will also promote electrification and energy efficiency, given their crucial part in enabling a net zero transition, as well as enable greater integration of renewable energy into the grid. Obviously we all know, especially on this side of the chamber, that more renewable energy equals lower power bills. The equation is very simple. With global greenhouse gas emissions in mind, ARENA will also support the development and manufacture of Australian renewable energy products for our trading partners. This will assist our trading partners with their own decarbonisation targets and have a positive effect on reductions globally. After all, there is only one planet, as everyone knows. Our neighbour's problem can be our problem to help them solve.

These positive changes to ARENA will provide the agency with the foundation it needs to support the transition to net zero and make Australia a renewable energy superpower. Statutory funding means ARENA delivers its Future Made in Australia components, such as the Solar Sunshot program and the Battery Breakthrough Initiative. A snapshot of the Sunshot program shows how it supports a future made in Australia. It aims to support innovative manufacturing facilities right across the solar supply chain, and the Battery Breakthrough Initiative promotes the development of domestic battery manufacturing capabilities. We won't just be shipping off raw materials and buying back and shipping in manufactured value-added batteries. Instead, we'll build them here in the first place. What a novel idea. We know that's happening, particularly in rural Australia. In my own home state of Victoria, old or soon to be decommissioned coal-fired power stations are being reutilised by these batteries and other solar initiatives because of their connection to the grid.

This bill directs statutory funding of over $6 billion of ARENA's existing funding to a limited special appropriation. It gives private investors the security required to support the extensive projects crucial to the transformation to net zero. It also showcases Australia's unwavering commitment to climate targets. Internationally we were fast becoming a pariah when it came to our response to very dangerous climate change.

The final raft of reforms to ARENA concern its governance and ensure that the agency has the ability to succeed with its expanded remit. The board will be strengthened, and the agency will be able to employ its own staff. It also changes certain ministerial arrangements, including enabling the Minister for Climate Change and Energy to delegate powers to other ministers and establishing the Minister for Finance as a joint minister for ARENA, reflecting the reality that responding to dangerous climate change must be an economy-wide endeavour. All ministers have a role to play.

As the Treasurer has said:

We have a unique combination of geological, meteorological, geographical and geopolitical comparative advantages. It would be an egregious breach of our generational responsibilities as a government if we didn't play this winning hand.

Well said, Treasurer. That's why this year's budget is backed by $22.7 billion in investment that aims to unlock the full potential of our resources and transform Australia into a manufacturing superpower.

This bold agenda is designed to drive innovation and industry growth, establishing Australia as a global hub for advanced technologies. Since we've come to government, we've had a 25 per cent increase in renewables, record investment in batteries and storage, and over 330,000 rooftop solar installations in just the year alone. In only two years we've approved enough renewable energy projects to power three million Australian homes. Our Future Made in Australia plan is about giving a huge boost to projects like these and ensuring they have what they need to compete in the future, and there's no time to waste.

We are the sunniest and windiest continent on earth, and this is our moment. More than anywhere on earth, Australia is poised to gain new jobs, new industries and new skills, creating opportunity in our regions, our suburbs, our factories, our labs, our TAFES and our unis. Our government is one that is prepared to step up and do its part to fund the apprenticeships, to attract the investments, to build the infrastructure, to boost the industries and to back the brightest ideas. That's what a future made in Australia is all about—a stronger economy made right here. I commend this bill to the House.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

A future made in Australia: can I tell you that, if this government keeps going, there will be nothing made in Australia, because the future under this government looks extraordinarily bleak. They're great with their little marketing spin: 'We'll put a bill in which gives the Treasurer'—the Treasurer who has overseen a cost-of-living and cost-of-business crisis—'control of the economy. We'll start running a command economy, and that's how we will ensure the future of manufacturing in this country.' Well, manufacturers are shaking in their boots under this government. They're saying to themselves: 'What's next? What are the government going to do to make our lives even harder?'

That is why we are going to oppose this bill—because it does nothing to address the issues which are confronting manufacturing in this country. As a matter of fact, everything it does is going to make things worse. To start with, will this bill help with affordable and reliable energy?

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

No.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

No, it won't. The member for Riverina goes straight to the top of the class because, if you ask a question, he has got the answer—straight ahead—which I must say is a little bit different to the Prime Minister today in question time. Five times there was a very simple question, and he was evasive and slippery and wouldn't answer anything like what the question had asked of him. But the member for Riverina knows—straight question, straight answer. Affordable and reliable energy: no, this bill does not help in that.

This is the biggest issue that manufacturing is facing right across this country at the moment, and I say to those opposite: please, for the sake of the future of our nation, fix the energy mess that you are creating. If it keeps going like it is, then, sadly, we are going to see manufacturing businesses disappear out of this country at a rate we've never seen. You have to fix this. That's why you should just take this bill out of here and say: 'We've got it all wrong. It doesn't incentivise in the right places. It doesn't fix the issues that need fixing. Instead, it has got all its priorities wrong.' Start again and go back to the drawing board.

What else does the manufacturing sector in this country need at the moment? It needs flexible workplaces, yet what is this government delivering? It's delivering more and more of the same: regulation upon regulation, which makes it harder for manufacturing businesses right across this nation to employ people. It makes it harder for them to adapt. It makes it harder for them to compete. Once again, we see from those opposite, those on the government benches, that they have no idea about what it requires to run a business.

I'll tell you what can happen now and what can happen quite readily which couldn't happen before. If you're running a manufacturing business, guess who can walk in the front door now?

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I reckon the unions.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

The member for Riverina goes straight to the top of the class again: the unions. The changes that are happening now mean that you can be a manufacturing business going about your business and running successfully. Your employees are happy. And who can trot in the door now? The trade unions. Once again, this government is looking after their union mates at the expense of manufacturing businesses.

We all know that unions have a role to play. The trouble is that the government thinks that role should be all-encompassing when it comes to running a manufacturing business, and that is not what this nation needs at the moment. We need flexible workplaces. We do not need workplaces which are regulated beyond an inch of their life, where on any day a union official can walk in the door and change the very nature of that business overnight.

What do you think a Future Made in Australia Bill, if it was not just a marketing headline but had real substance, would do? It would look at reducing regulation for manufacturing businesses across this nation. It would look to reduce red tape. This is something that the member for Riverina knows and understands well, because he's a former minister for small business. He knows and understands the importance of getting rid of regulation. He's a business owner as well.

Why is regulation strangling manufacturing businesses right across this nation? Because it means that the people who run these businesses are spending their whole time petrified about the regulatory burden that they face and about complying with that regulation, rather than getting on with running their manufacturing business. Can I say to those opposite: please, once again, look at what you're doing to these businesses. See what you can do to take the regulatory tax burden away from them and what you can do to take away the regulatory burden when it comes to work health and safety. Look at what you can do to take the regulatory burden away when it comes to ensuring that they aren't facing, once again, burden after burden when it comes to compliance in every single form. If you can do that then manufacturing businesses in this country will have a chance.

Do you know what else you need to do? You need to make sure you have a tax system which incentivises these businesses to make a profit, to reinvest that profit back into their businesses and to grow their businesses, so that we can, once again in this country, see small businesses becoming medium-sized businesses and medium-sized businesses becoming large businesses. All you are doing at the moment through your tax system is taking away any incentive for these businesses to grow.

Why is it important that we have affordable and reliable energy, flexible workplaces, less regulation and an incentive-based tax system? It's important because it means that manufacturing businesses can flourish. Why is it important that manufacturing businesses can flourish? Because if they don't, we're not making things here in Australia. And, as we saw during the pandemic, if we're not making things here we are leaving ourselves vulnerable. We have to be able to make things here.

The way you make things here is twofold. First of all, you have to be able to make things here so that you can sell them in the domestic market. Then, usually as you grow, you want to be able to sell not only in your domestic market but also in your international market. If manufacturing businesses here in Australia aren't competitive, they aren't able to do that. You have to be competitive. If you're not, what happens is that those who manufacture overseas are able to get their products into Australia at a more competitive rate and that puts pressure on our manufacturing businesses here. Our manufacturers who have grown things and who are exporting all of a sudden can't compete because others can compete and provide the products and goods at a better price than they can. So you have to be competitive.

The ultimate question that needs to be asked about this bill is: does it make our manufacturing businesses here in Australia more competitive? The sad reality is that the answer is no. That is why the government needs to take it back to the drawing board and start again.

I have some very, very good, competitive manufacturing businesses in my wonderful electorate of Wannon. There are some wonderful ones, whether it comes to manufacturing parts to go in Kenworth trucks and to go in Bushmaster vehicles, whether it comes to food manufacturing in the red meat industry and the dairy industry or whether it comes to manufacturing for wind towers which are used in wind farms for renewable energy. I have a wide variety of manufacturing in my wonderful electorate of Wannon. These wonderful manufacturing businesses tell me time and time again that they want the cost of doing business reduced. As a matter of fact, they are saying that there is a cost-of-doing-business crisis. Those are the large manufacturing businesses.

I also have a lot of small manufacturing businesses in my electorate, and they are right across the economy as well. They might be in metal fabrication. They might be in the building industry making trusses for small homes et cetera. Right across the board, they are manufacturing some of the most diverse things that you would see right across our economy. What are those smaller manufacturing businesses saying to me as well? They are saying, 'Please reduce our costs.' Why is it so important that the cost of doing business is reduced in this country? It's because, if we don't reduce the cost of doing business, business has no alternative but to pass those costs on. What happens when they pass those costs on? The consumer has to pay more, and that adds to the consumer's cost-of-living crisis.

I say to the government, 'You have to address inflation and you have to address it now.' We've got ourselves in this vicious circle where the cost of doing business is going up and that is passed on to the consumer. So the cost of living is going up, and we end up with a cost-of-living crisis and a cost-of-doing-business crisis. What we're seeing from the government is a hopelessness and a haplessness in addressing this, the like of which we have never seen. You're starting to make Gough Whitlam look good. You have to be able to deal with inflation. I don't think that I've heard from a single business that hasn't found the current operating environment worse than the GFC, worse than the Asian financial crisis and worse than any other time that they have faced in the last two, three or four decades. They are saying times are as tough as they have ever, ever been.

I will conclude with this: Does this bill make our manufacturing businesses more competitive? Does it help them address the cost-of-doing-business crisis? Does it mean that the cost-of-living crisis will be addressed because the cost of doing business will be addressed? No, it doesn't. Those opposite are always smug and smart and they got together and they thought: 'We've got a bill and all it will do is make things ultimately tougher for business and tougher for the consumer. What will we call it? We'll call it the "Future Made in Australia Bill".' Well, I think all of us can agree on one thing in this House—that that title basically means that there won't be a future made in Australia. As a matter of fact, if this government continues in office, there will be no future for manufacturing in this country in the short to medium period. That will be a travesty because it will mean that our country is less prepared to face the challenges that it will need to face into the future.

Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

As the world transitions towards net zero emissions, Australia faces both an immense challenge and an unprecedented opportunity. The government is committed to ensuring that we do not just to keep pace with these global changes but that we lead the way, building a stronger, more diversified economy that is powered by renewable energy and underpinned by secure, well-paid jobs. That is what this Future Made in Australia Bill is all about. It's about ensuring that we respond to the immediate pressures of a changing world but also about ensuring that Australia is best placed to take advantage of the opportunities of the future. This bill seeks to lay the groundwork for an economy that is resilient in the face of global uncertainties and dynamic in its capacity to seize new opportunities. The Future Made in Australia Bill is a vital part of a plan to build an economy that is not only stronger and more resilient but also sustainable and fair.

As we look around the world today, we see the effects of the global transition to net zero playing out in real time. Supply chains are fragmenting under the pressure of geopolitical tensions and competition for clean energy resources and technologies is intensifying. For Australia, a nation rich in natural resources and renewable energy potential, this shift presents a significant opportunity but only if we are ready to take it. Economic resilience in 2024 is about building the capacity to thrive in a rapidly evolving world, and this bill is designed to do just that. By focusing on our competitive advantages, which are our abundant renewable resources, our critical minerals and our world-class research and manufacturing capabilities, we can ensure not only that Australia is resilient to face the global challenges but that we emerge stronger and more competitive on the world stage.

We are uniquely positioned to lead in the global transition to net zero. We have some of the world's best wind and solar resources, a wealth of critical minerals essential for clean energy technologies and the expertise in our workforce to harness these resources efficiently. Our resources are in high demand globally as nations accelerate their efforts to reduce carbon emissions and transition to cleaner energy sources. The International Energy Agency has forecast that global demand for critical minerals could increase by as much as six times by 2040, driven largely by the energy transition. This presents us with a golden opportunity to secure our place as a key supplier in the global market.

The global competition for these resources is fierce and, if Australia is to maintain its competitive edge, we must invest strategically and ensure that our industries are equipped to meet the demands of the future. This is where this bill comes into play. By providing a clear and stable framework for investment, this bill will help unlock the private sector capital needed to develop our critical minerals resources and ensure that Australia remains a leader in this vital sector. The potential for us to become a renewable energy superpower is immense. Our vast landscapes are bathed in sunlight and swept by winds, providing us with an almost unparalleled opportunity to generate clean and cheap renewable energy. We are home to some of the largest and most promising deposits of critical minerals, such as lithium, cobalt and rare earth elements. These are essential components of batteries, electric vehicles, and other clean technologies.

However, becoming a global leader in renewable energy requires more than just abundant resources; it demands innovation, infrastructure and international cooperation. We must invest in the technologies that will allow us to harness our renewable energy potential fully. This includes advancing our capabilities in energy storage, grid management and the development of green hydrogen, a field in which Australia has the potential to excel. Green hydrogen, produced using renewable energy, has the potential to become a major export for Australia, providing clean fuel for industries worldwide and cementing our position as a pioneer in the global energy landscape.

Furthermore, our transition to net zero will require significant upgrades to our infrastructure. We must modernise our energy grids, expand transmission networks and build necessary facilities for large-scale renewable energy production and export. This will not only support domestic energy needs but also position Australia as a key supplier of clean energy to the world, particularly to our regional partners in Asia.

This bill is crucial to realising this potential. It lays the groundwork for Australia to lead the world in energy production, innovation and exports. By providing a stable, predictable framework for investment, this bill will attract the capital needed to develop large-scale renewable energy projects, advanced manufacturing and, importantly, the processing of critical minerals here onshore. Already we're seeing the private sector responding to these opportunities. Investments in solar energy farms, wind projects and battery storage systems are on the rise, and they will only continue to rise under the programs and policies of this Labor government. This bill is vital for ensuring that the benefits of the revolution—the renewable energy revolution, not just the standard revolution—are shared widely across—

Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship and Multicultural Affairs) Share this | Link to this | Hansard source

Bring on the revolution!

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

What are you planning?

Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

Whoops! I let the plan out! I said the quiet part out loud! This bill is vital for ensuring that the benefits of our renewable energy revolution are shared widely across Australia, particularly in regional and remote areas. By fostering local ownership and participation in renewable energy projects, this bill will help build stronger, more resilient communities and create new economic opportunities in areas that have traditionally relied on industries like coalmining and agriculture. As global and local demand for clean energy grows, so too will the demand for technologies and materials to make that possible. By positioning Australia at the forefront of this shift, we are ensuring that our economy remains vibrant and competitive for decades to come.

To be a true global leader in renewable energy, Australia must also invest in innovation. This means supporting research and development in emerging technologies like hydrogen production, energy storage and grid integration. We have the potential to be the world leader in these areas, and this bill provides the necessary support to ensure that our researchers and innovators have the resources they need to develop the next generation of technologies.

Central to this bill is the National Interest Framework, which is designed to align economic incentives with our national climate goals. This framework identifies sectors where Australia has a genuine competitive advantage in the net-zero economy or where economic security imperatives demand domestic capability. By legislating this important National Interest Framework, we are providing the certainty and stability that investors need to commit to large-scale projects that will drive our transition to net zero. Legislating this framework will provide increased stability. The National Interest Framework will ensure that our investments are directed towards sectors that will provide the greatest economic and, importantly, the greatest environmental returns. By identifying and prioritising these sectors, the framework will help to streamline government decision-making and reduce the risks of investment in these critical areas. This is particularly important in the context of the global energy transition, where time is of the essence and competition for capital is intense.

Another key component of this bill is the community benefits principles. These principles ensure that the investments made under the Future Made in Australia plan will deliver tangible benefits to local communities. This includes promoting and providing secure and well-paid jobs, fostering inclusive workforce development and strengthening our domestic industrial capabilities.

We are committed to ensuring that the benefits of this transition are shared broadly, especially in communities that have been historically dependent on traditional, fossil-fuel heavy industries. The renewable energy sector, in particular, stands to benefit from these principles. We can expect significant job creation in regions such as the Hunter Valley in New South Wales and regions in Central Queensland, where the transition to clean energy will bring new opportunities for workers. This bill's focus on training and skills development will ensure that these workers are prepared to take on these new roles, helping to build a more skilled and inclusive workforce. The emphasis on inclusivity is also critical, ensuring that all Australians, regardless of their background, have access to the opportunities created by the transition to a net zero economy.

This Future Made in Australia plan is a critical tool in our fight to take action on climate change. It's part of our government's broader strategy to achieve net zero emissions by 2050, as outlined in our commitments under the Paris Agreement, which are testament to our recognition of the urgent need to address climate change. By focusing on renewable energy and clean technologies, this bill will help Australia meet its emission reduction targets whilst also driving economic growth. The science is clear. To avoid the worst impacts of climate change, we must drastically reduce our carbon emissions. By investing in renewable energy, electrification and energy efficiency, this bill will help decarbonise key sectors of our economy such as electricity generation, transport and industry.

This bill supports the development of sectors that are crucial to this transition, such as electrification, energy efficiency and renewable energy integration. The amendments to the Australian Renewable Energy Agency Act will enable the agency to better support the government's renewable energy objectives, including initiatives like the Solar Sunshot program and the Battery Breakthrough Initiative. These programs are essential for reducing Australia's reliance on fossil fuels and for transitioning to a clean energy future.

The statutory funding provided and proposed under this bill will secure the natural resources needed to support these programs over the coming years. This funding will give industry and investors the certainty they need to develop projects of the scale and duration necessary to meet our climate targets. This will send a strong signal to the world that Australia is serious about leading our transition to net zero.

It's important to recognise that the transition is not just about reducing emissions; it's about creating a more sustainable and resilient economy. By investing in clean energy technologies and renewable energy, we're not only addressing the climate crisis but we're building a more robust economy that is better equipped to withstand future shocks. This is the essence of what this bill is all about. It's a vision for a strong, sustainable and resilient Australia. It's a bill that will enhance Australia's economic resilience, secure our place as a global renewable energy superpower and drive our transition to a net zero economy.

We can't continue to be a country that just digs up critical minerals from the ground without processing them onshore. We should be building batteries here, we should be building solar panels here, we should have green hydrogen investment so we can export it to the world. This is what this bill will help unlock, which will help us to engage with our region so that we can drive our own electricity generation emissions down and we can drive our industry emissions down. We can then take that know-how across the world to our key trading partners and encourage them to reduce their emissions as well. We should be able to lead the way here and be part of the global energy transition. That's what this Future Made in Australia Bill is all about.

This isn't just about investing in our economic future. We are taking decisive action on a sustainable environment and sustainable manufacturing for generations to come. We hear those opposite talk down manufacturing in this country and give this government lectures about what can be made here and what can be built here, yet they spent the best part of a decade driving manufacturing out of this country including driving out our car manufacturers. They'd turn up with their press releases in their high-vis taking photos with manufacturers but not actually back bills to support them like this one or like the National Reconstruction Fund. We will not sit here idle for another 10 years and miss the opportunities that the global transition to renewable energy will give us.

Debate interrupted.