Matt O'Sullivan (WA, Liberal Party) Share this | Hansard source

I rise today to speak on the National Reconstruction Fund Corporation Bill 2023. It's an interesting name that's been given by the government to this bill. When I first saw the title, I thought it was a bill aimed at establishing a fund to maybe help communities that are recovering from natural disasters or from a state of low economic impact or activity. But this bill probably would have been more appropriately named the union slush fund bill or something like that, because it's quite a misnomer. Those on the other side have coined a new phrase—the Liberal-National 'no-alition—like it's some sort of zinger. We're all sitting back, having recoiled into our positions over here, because they've got us on these zinger claims.

We oppose policy when it's a dud deal. We oppose policy if it's going to be bad for the economy or if it's going to be bad for the Australian people. Indeed, we'll oppose policy if it's clearly not going to meet its objectives. If it's not going to address the issue that they say it will address, we'll oppose it because that money could be better directed or better spent elsewhere, which is the case with this bill. We're opposing this bill because we don't believe it's good policy. We don't believe it's going to set up Australia for a better future. It's a big issue. Australians rely on having cheap and reliable energy, but because of Labor's deal with the Greens on this bill, this bill prohibits coal and gas from receiving finance from the National Reconstruction Fund. We think that's a real mistake. The best way for Australia to be competitive, particularly on the international stage, is to utilise the advantages we have as a nation, and one of the best advantages we have as a nation is access to cheap and reliable energy. Other countries don't have. We can capitalise on that, take advantage of that and have a real impact. This bill, because of the dodgy deal that they have done with the Australian Greens, takes away the ability of the fund to fund important projects that will build into the future of this nation.

The Australian Aluminium Council said:

The single biggest factor in determining the location of future refining, smelting and manufacturing locations is reliable, internationally competitive, low emissions energy.

Surely, everyone here understands. You don't have to be an expert in energy or an expert in the generation of energy to know that wind and solar are not reliable. They might be a good source of energy while the wind is blowing and while the sun is shining. Developments in technology for when the sun is shining and the wind is blowing are improving. The products that harness that energy are improving and becoming more efficient in their manufacture and how they are made ready. But they are not reliable, because the wind doesn't always blow and the sun doesn't always shine. Everyone, surely, can understand that. But there does seem to be a lack of understanding that the best way for us to transition technology to those forms of energy—there might be better storage of that energy so it can be used when the sun is not shining and the wind is not blowing, through batteries or other means of storage, such as hydrogen technology, for example, and the production of hydrogen. No-one, anywhere in the world, has yet built a big electrolyser to produce hydrogen. It might happen, and over time, the development of those technologies could certainly make a big difference. What seems to be missing in the Labor Party, and most certainly from the Australian Greens, is the knowledge that gas is the transitional fuel which will maybe get us to that point, if it does result.

Labor cannot continue to demonise reliable energy sources such as gas if it is serious about addressing the issue of having a carbon-free future. We must consider gas as a transitional option. I say that as a very proud Western Australian, because we have enormous potential and we have enormous reserves of gas energy in Western Australia. We have become the world leaders in the exploration, production and delivery of gas. I invite my colleagues in this place to go up to the North West Shelf and the Pilbara and have a look at the projects that are operating up there. You will see some real ingenuity, particularly when it comes to carbon sequestration. The work that has been done in CCS is quite phenomenal, and you will be inspired by that. I encourage people to do that. Unfortunately, what we're seeing with this bill is a recoiling from that industry when we need it more than ever. We need it for the future of the economy. We also need it if we're going to have a serious ambition to cut emissions. Gas is the transitional fuel that enables us to get there.

The Labor Party, because they're so reliant on the Greens—be it here in this chamber or, on election day, relying on their preferences to get over the line in individual electorates—have to succumb to the demands of the Greens every time. We're seeing that on the Safeguard Mechanism (Crediting) Amendment Bill 2022, which we'll be debating later this week, no doubt. They have to give in, because that's the only way they will be able to pursue their agenda. But deep inside, in every single one, there is this demonising of traditional forms of energy, and gas is the traditional fuel that will really make a difference.

This bill also ignores the key economic issues, such as rising energy prices, labour shortages and supply chain disruptions. But we all know, when it comes to energy prices, Labor can't keep their promise. This bill will cause manufacturers to lose time. In this broken model it will take significant time for money to start flowing. The National Reconstruction Fund has a very poor funding model. This bill shifts from a competitive grants program to government acquiring equity and providing loans.

This bill is fiscally irresponsible, in our view, delivering funding well in excess of the coalition's Modern Manufacturing Strategy. It undermines investment certainty in national priorities, with the government changing Australia's national manufacturing priorities, on a political whim, undermining investment decisions and eroding investment confidence.

We're seeing recurring examples, unfortunately, of this government's arrogant response: telling industry what to think and how they should conduct business. The Prime Minister is very adept and more than willing to tell Australians how to suck eggs and, indeed, telling industry how to suck eggs. Remember, we saw this behaviour with the union jobs summit—the Jobs and Skills Summit—they had right at the beginning of this term of parliament. We saw with this summit that they had more union officials than Western Australians. I think there were only six or seven Western Australians invited to this great talkfest that was held here in the Great Hall. There were probably more Johns or Bruces at that conference than there were Western Australians. It's a shame. There were certainly a lot more union officials—significantly more union officials—than there were Western Australians.

I remember standing on polling booths during the election. Obviously, the government won. The Labor Party won the election. But they stood there, in Western Australia, right throughout the campaign, with signs up all over the place saying 'Put WA first. Vote Labor'. This bill and other examples like it are not putting Western Australians first. As a Western Australian senator that's what I'm here to defend, and they're not doing that. They didn't do it when they had their union talkfest, their union jobs summit. They had far more unions than they had Western Australians. They're not taking into consideration the very important industries that exist in WA and what will drive investment and the future prosperity of this nation.

The Treasurer's first budget, last year, was a missed opportunity to support industry and business in tackling the rising costs of workforce shortages and supply chain issues. Rather, they decided to stoop to their union paymasters and run a radical industrial relations agenda that is having a devastating impact on business, and the Albanese government has failed to rule out radical union demands as they rush through this National Reconstruction Fund. The unions are demanding. To quote the Australian Manufacturing Workers Union submission to the department:

The composition of the NRF Board must include two ACTU-nominated positions, two employer-nominated positions, and positions from representatives from academia and pro-union elements of civil society.

That's who's going to be running this slush fund once it's set up. It's going to be Labor aligned, union interested individuals—be they unions themselves or, in their own words, 'pro union elements of civil society'.

Mr Albanese is rushing this bill through, just like he rushed through the industrial relations bill late last year, side-stepping parliamentary scrutiny and avoiding appropriate consultation with industry. Australian taxpayers will be the ones who will end up wearing the recklessness of this bill. That's because the National Reconstruction Fund delivers on what the Labor Party and the unions want. Let me say that again: this bill, this fund, delivers on what the Labor Party and what the unions want, and not what struggling Australian manufacturers need. The bill hasn't passed yet, but probably will sometime today, and unions are already licking their lips at the prospect of the National Reconstruction Fund and have listed their demands. They can't wait for this bill to pass.

The Business Council of Australia said, 'To successfully diversify and transform Australia's economy, we need to get macroeconomics right. If we fail to do this, Australia will continue to fall behind our competitors.' Well, this government doesn't understand economics. Senator Paul Scarr often likes to pull out that Economics 101 book and quote from it. It's a very good source and something that lot on that side should probably read. Senator Scarr's very willing to hand it over, I'm sure, at any time that anyone from the economic frontbench want to take a look at it. It's clear that this lot over here don't have a grasp of basic economics. They don't have an understanding of basic economics and they're not getting the settings right with this bill. The out-of-control inflationary pressures currently being experienced by Australian families speak to that. This bill is actually going to add further fuel to those inflationary pressures that exist. This government do not build up industry confidence. Rather, they leave industry in the lurch and concerned that the current government will just change their direction on a whim. That is a real concern.

I get that deals are done in this place. The Australian Greens have done their deal, and possibly the crossbench have sorted themselves out on this, but I urge them to reconsider it. This is a big issue. Getting the settings of our economy right is critical to putting downward pressure on cost of living—that's the big issue Australians are facing right now. That is the biggest issue. I don't know if the Labor government realise that. They probably don't talk to enough people other than those in their little union circles. But let me tell you, you talk to anyone out on the ground—come with me to Western Australia and I'll introduce you to some people who are feeling it right now, who are feeling the cost-of-living pressure. They're under pressure because those opposite are not doing anything to address the issues that people are facing. This bill is only putting further inflationary pressure on the economy, and that's going to drive up costs even higher for people's living.