Linda Kirk (SA, Australian Labor Party) Share this | Hansard source

I rise this afternoon to take note of answers given by Minister Carr in relation to questions directed to him by the opposition in relation to the Commercial Ready program. There was no question that the first budget delivered by the Rudd Labor government and by Treasurer Wayne Swan was going to be a tough one. We indicated that for some time, and everybody knew that it was going to be a tough budget. The reason for this is in part the inflation legacy that we inherited from the Howard government. People know that we have the highest inflation that we have had in 16 years. As a consequence of the legacy left to us by the Howard government it was necessary for the Rudd Labor government to take some very hard decisions, and that is what we did. People are very familiar with the range of savings measures that were outlined in the budget. These all demonstrate the fiscal responsibility and the clear commitment that the government have to modernising government spending in this country. It was necessary for us to take difficult decisions in order to secure Australia’s long-term prosperity. The disciplined savings measures that were contained in the budget will help to put downward pressure on the inflation, which I mentioned earlier, that is the highest in 16 years, because we in the Rudd Labor government understand that inflation is real and is hurting working families.

Turning now to the Commercial Ready program and its closure, there is no question that the closure of the Commercial Ready program was a difficult decision. While it is regrettable that there are some applicants who spent time and resources in preparing applications, the government made the hard decision which has been implemented. This decision 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. It is important to note that all existing commitments under the program will be met. This is worth about $200 million over four years. Also, it is important to emphasise that all of the regional AusIndustry offices originally established with the Commercial Ready funding will remain open, providing advice and support to regional small and medium sized businesses across the country. It is also important to remember that almost three-quarters of the savings from the Commercial Ready program in 2008-09 had already been earmarked in our election policy Clean Energy Plan to tackle climate change in order to offset the government’s new $240 million Clean Business Australia package that the Minister for Innovation, Industry, Science and Research mentioned here today in question time. We in the Rudd Labor government are meeting our election commitment to establish Clean Business Australia because we recognise just how important it is for governments to work in partnership with industry to meet the challenge of climate change.

The Rudd Labor government will continue to support Australia’s innovative businesses through R&D tax concessions, the tax offset, the COMET program and a range of venture capital measures including the Innovation Investment Fund Program as well as new initiatives such as Enterprise Connect, researchers in business, Clean Business Australia, which I have already mentioned, and the Green Car Innovation Fund, about which a lot has been said in the last few weeks.

The Rudd Labor government is determined to get the policy settings and programs for innovation right, and part of this is making tough decisions when necessary about spending priorities. The closure of the Commercial Ready program is one of the tough decisions that needed to be made in order to ensure that we are spending in a fiscally responsible manner.