Dorinda Cox (WA, Australian Greens) Share this | Hansard source

I rise to speak to the National Reconstruction Fund Corporation Bill 2023. Firstly, I want to echo the comments of my colleagues Senator Allman-Payne, Senator Barbara Pocock and Senator Waters and acknowledge the huge win that Senator Allman-Payne and our leader, Adam Bandt, have managed to negotiate with the government. Due to the hard work of my colleagues, the National Reconstruction Fund now and under future governments will not fund fossil fuels and native logging projects. It was confirmed in the most recent round of Senate estimates that there was nothing currently stopping the proposed corporation investing in these destructive industries. In the past we've seen the coalition try to use public money to fund coal and gas through the Clean Energy Finance Corporation. They were unable to do so because of the guardrails that the Greens and Labor put in place. Now we have the same assurance for the NRF, which won't be used to fund the climate crisis.

The amendments that the Greens have secured will ensure that the National Reconstruction Fund will be focused on creating high-quality jobs across a diverse economy, particularly in regional Australia. Senator Brockman, my fellow Western Australian senator, earlier spoke of the importance of this for our home state. These amendments, which passed in the other place, create a class of prohibited investments within the legislation to explicitly ban the National Reconstruction Fund Corporation from financing the extraction of coal and gas, the construction of gas pipelines and the logging of native forests. This is absolutely critical in the climate crisis because we simply can't keep pouring petrol on the fire while we're trying to put it out.

The Greens have also secured a government amendment so that the investments made by the board will have to align with the legislated climate targets and any updated future commitment by Australia under the Paris Agreement. I cannot understate how important this is, as the Greens continue to fight for stronger climate action and for the government to listen to the climate science. This is a huge win for our climate, jobs and the economy. It's aligning us with a global movement and not propping up some of those dying industries. The Greens took a policy for a manufacturing fund to the election. I was in Kalgoorlie in regional Western Australia talking about the importance of investment in manufacturing. We strongly support public investment in rebuilding manufacturing in Australia. Every cent spent on coal and gas will wreck the climate and divert much-needed funding from manufacturing initiatives, especially in regional Australia.

This win is extremely timely, as the IPCC report was released last week. This will be the last report until the 2030s. Many are seeing this as a final warning, as we are on track to fly past 1.5 degrees of warming and beyond under the current regime. This report clearly states that we cannot open any more new coal and gas projects and that we must rapidly move away from this approach. That means that there is a sprint required, not the casual walk that we've been taking, away from fossil fuels. We have to do that to move towards a decarbonised economy. That means a 75 per cent reduction in emissions by 2030 is required. We are not on track to meet this, for the key reason that this government's emissions target is not even close to what we need. It also means that we must stop giving public money—yes, that's right: taxpayer money—to fossil fuel companies to fund these dirty projects. I'm so pleased to see that this fund will not be doing that, but there is still a long way to go before we see not a single cent being given to these greedy companies, which, quite frankly, don't need or deserve this money. In the 2021-22 financial year, the Australian government handed out $11.6 billion in fossil fuel subsidies. Let me repeat that: $11.6 billion was paid just in subsidies to the fossil fuel industry. That's almost the size of the National Reconstruction Fund that we're debating today.

Let's imagine what could be done with that money. It could be added to the NRF, to almost double it. It could support our health sector and our education sector. It could help with flood recovery. We are in a cost-of-living crisis, and a government that is willing to place billions of dollars straight into the pockets of these companies that are seeing record-breaking profits is absolutely unacceptable. This $15 billion fund will help support our economy, create jobs, drive regional development and grow our sovereign capability, but we must ensure that it's sustainable and that these investments will help us face the climate crisis, not make it worse. This fund, if we use it well, could go a long way to helping transition away from fossil fuels and into that decarbonised economy. What could also go a long way in helping the transition would be a commitment to a national transition authority, something that Senator Allman-Payne has also done some amazing and incredible work on—so I congratulate her.

As the Greens spokesperson for resources, I'm pleased to see that this will not be used as a slush fund for greedy fossil fuel companies but will help us extract the resources we will need as we transition away from fossil fuels: the minerals we need to make our solar panels, wind turbines and batteries. I'm also pleased to see that the NRF will be used to invest in renewables. However, again, it is so important that we ensure that this is done sustainably and also not just in consultation with traditional owners but actually with their free, prior and informed consent and with First Nations people owning some of the projects that are happening on their country. This goes beyond simply signing an Indigenous land use agreement and paying them some royalties. This will ensure that the traditional owners are deeply involved in every aspect of projects that are happening on their lands and that they will have a say about the types of projects, the locations, and who will operate and maintain them and be involved in restoring their country.

There is so much possibility for First Nations people to be the owners and beneficiaries of what is happening on their lands, and I would like to point out that the benefits aren't only in terms of money and jobs. These projects could foster connection to country and culture and having people work on the land. First Nations people know which areas are sacred and therefore should be left alone, which areas need to be preserved and protected from development, and which areas will be suitable for solar panels, wind turbines, offshore wind and whatever else is required, since we have been the custodians of this country for 65,000 years.

In terms of mining of critical minerals, we must ensure that mine rehabilitation is at the forefront of these projects—in fact, it must be included as part of the approvals process—and that companies behind these projects are actually committed to the process before they begin. Far too many of these companies will take government money to operate mining projects—again, without free, prior and informed consent from traditional owners—and make enormous profits, which they give to their executives and shareholders, and, at the end of the life cycle of the mine, cry poor and claim that they cannot afford to rehabilitate the mine. So either the infrastructure is left on site, pits are not closed and potentially harmful chemicals are not cleaned up or, as we have seen with the Northern Endeavour case, the government—but really that is a pseudonym for the taxpayer—has to step in and foot the bill.

Again, think of everything that we could do with this money that is tied up in bailing out mining companies. We cannot keep making the same mistake. It is unacceptable that mining companies are allowed to get away with this in this country. We know that many companies will put away bonds, but, as we've seen with the Ranger mine, these bonds are put away to cover the rehabilitation costs as estimated at the start of the mine—in this case, some 40 years ago. Now they don't come close to covering the cost, because since the mine opened the standards have changed and there have been many unforeseen circumstances that are not accounted for.

We have a lot of work to do in this space. I acknowledge that we need these minerals for the transition to the net-zero economy, but we must carefully consider the need for these minerals and the risks to water and to the environment and also the risk of destruction of cultural heritage. This will not be an easy balance. I know we must consider all of those factors, but we cannot keep contaminating water sources, destroying sacred sites and driving native and endangered species out of their natural habitats.

On another note, this fund will be critical in the research and development of new technologies and methods. As the science portfolio holder, I'm glad to see this investment in research and development. We need to see this through from the research and development stage to production, preferably here on Australian soil.

Another exciting potential for this fund that has not been widely discussed is in growing native botanicals and bush foods. This brings so many benefits in relation to food security, caring for country, supporting First Nations businesses and creating and sustaining a First Nations led bushfoods market, both domestically and internationally. It also brings investment in this sector that can support connection to country and culture, and this is particularly important in northern and regional Australia.

There are hundreds, if not thousands, of plants that grow only in Australia and have been used in a variety of ways in First Nations communities for thousands of years—for food and also for medicine. Recently, I've noticed an increase in the use of these ingredients by companies that are not First Nations businesses, and, due to this, these ingredients are not always used in a culturally appropriate way. I'll give an example. The moodjar tree, commonly known as the Christmas tree, which grows in Western Australia, contains the spirit of our old people, the spirit of our ancestors. I have seen companies place this into alcohol, particularly gin, which is not an appropriate use. If we make sure that First Nations people are not only growing these botanicals and bush foods but also owning the businesses that are processing and developing the products using them, this could be avoided, with good legislation and regulatory frameworks. I really hope the government sees the large number of benefits that this might bring by encouraging and supporting First Nations businesses to access the fund to grow native botanicals and bush foods on our country. This fund represents so much opportunity for First Nations communities, for addressing the climate crisis, for science and technology and for jobs right across this country.

At the request of Senator Whish-Wilson, I seek leave to move the second reading amendment in his name, on sheet 1896, highlighting the need for the NRF to invest in a circular and decarbonised economy, as such investments can bolster Australia's capability and reduce supply chain vulnerabilities.

Leave granted.

I move:

At the end of the motion, add ", but the Senate:

(a) is of the opinion that:

(i) building a circular economy is a central element of delivering net-zero emissions,

(ii) a circular economy can bolster Australia's capabilities and reduce supply chain vulnerabilities, and

(iii) the benefits of a circular economy could add $210 billion in GDP by 2047-48, creating an additional 17,000 full-time equivalent jobs; and

(b) calls on the Government to:

(i) invest in projects that facilitate the establishment of a circular economy for renewable energy and other products,

(ii) incorporate circular economy principles into the Investment Mandate for the National Reconstruction Fund; and

(iii) seek that the National Reconstruction Fund Board give regard to outcomes and advice from the Circular Economy Taskforce".