Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

We inherited an inflationary legacy from the Howard government, which has produced the highest inflation in 16 years. This meant we had to make some pretty tough decisions. The budget contains disciplined savings measures to demonstrate our commitment to fiscal responsibility, to modernising government spending and to putting downward pressure on inflation. We understand just how damaging inflation is for working people. Closing Commercial Ready was very much at the heart of a very tough call. Of course, it will allow us to get on with the job of implementing a new, streamlined set of programs following the review of the National Innovation System.

All existing commitments under Commercial Ready—that is about $200 million over four years—will be met, and all regional AusIndustry offices originally established with the Commercial Ready funding will remain open. This is a budget about resetting priorities, and I understand that the previous government endorsed the Productivity Commission view, which, I note, argued that there was a duplication of programs and that Commercial Ready was not in fact addressing the issue of market failure. I did not hear any complaints about the Productivity Commission in the past from those opposite.

One of our biggest problems is tackling climate change. That is why we have established new budget measures through this last budget—some $2.3 billion worth of climate change initiatives, such as the new Clean Business Australia fund. Three-quarters of the savings from Commercial Ready during the period of 2008-09 will go into Clean Business Australia programs in line with our election commitments. These programs include Climate Ready, which will support innovation in water recycling, waste recovery, small-scale renewable energy, green building materials, energy efficient appliances and other areas. Climate Ready grants will match company spending on R&D and proof-of-concept and commercial activities dollar for dollar.

Funding for these programs actually begins next month, and we will continue to support innovative Australian businesses through the research and development taxation concession measure, the tax offset measure, the COMET program and venture capital programs. We will also build on support with new initiatives, such as Enterprise Connect and the Green Car Innovation Fund. I am very pleased the you have asked this question, Senator. Unlike our predecessors, this government is not leaving innovation and industry policy on autopilot. We are taking the tough decisions, and we are establishing clear priorities to produce the best outcomes for Australia.