Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Hansard source

I table a revised explanatory memorandum related to the bills and move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

FUTURE MADE IN AUSTRALIA BILL 2024

Today I am proud to introduce the Future Made in Australia Bill 2024.

This Bill is a major step in implementing the Albanese Labor Government's Future Made in Australia agenda, to deliver our country's next generation of prosperity.

It brings us closer to our vision for a prosperous future for all Australians -

And helps us secure Australia's place in a shifting global economic and strategic landscape -

On the back of the global transition to net zero.

The world is changing and the pace of that change is accelerating as the planet moves to a future powered by cheaper, cleaner energy.

As the Prime Minister has said, this change means we are in the middle of the biggest transformation in the global economy since the industrial revolution.

At the same time geostrategic competition is growing.

The international rules-based order is under constant pressure.

Population demographics are shifting.

And the risk of major supply shocks is rising.

Amidst this churn and change our path to prosperity is clear.

Australia has been dealt the most incredible set of cards to make ourselves the primary beneficiaries of the net zero economy.

We have a unique combination of geological, meteorological, geographical and geopolitical comparative advantages—

And we know it would be an egregious breach of our generational responsibilities as a Government if we didn't play this winning hand.

This Bill is all about realising our genuine advantages—

And recognising our future growth prospects lie at the intersection of our industrial, resources, skills and energy bases and our attractiveness as an investment destination—

So we can grasp the jobs and opportunities of the energy transition.

The world is moving on and Australia needs to move with it.

Because if we get stuck in the past, this country will be poorer

It will be more vulnerable -

And we won't make the most of the golden opportunity in front of us.

Our Future Made in Australia agenda responds to this.

Our goal here is to power the future, not manufacture the past.

Our strategy is to engage and invest not retreat and protect.

Our emphasis is on attracting private investment, not replacing it.

To prosper from change, not just protect ourselves from it.

And the Bill I'm introducing today is putting this plan into practice—

To help make Australia a renewable energy superpower, and an indispensable part of the global net zero economy.

To more closely align our national security and economic security interests.

To modernise and strengthen our economy, in a world built on cheaper and cleaner energy.

To grab the vast industrial and economic opportunities from the world's shift to net zero.

And share the benefits of those opportunities with every Australian.

We know that to succeed our plan must be underpinned by discipline and rigour.

That's what this legislation is about.

This Bill embeds into law the strict criteria and robust processes that will guide our decision-making and set us up for success.

To help give investors the clarity and certainty they need to invest and unlock growth in our economy.

It's about ensuring public investment is prudent and powerful.

Public investment that pulls in substantial private investment and guides it towards Australia's national interest.

The legislation is built on three pillars.

First, a National Interest Framework, which will help us identify sectors where we have a sustained comparative advantage in the new net zero economy, or an economic resilience and security imperative to invest.

Second, a robust sector assessment process to help us better understand and break down barriers to private investment in key areas of the economy.

And third, a set of Community Benefit Principles that will ensure public investment and the private investment it generates lead to strong returns and stronger communities.

The three pillars will work together to help us build a more diversified and more resilient economy powered by renewable energy.

The Framework helps determine our investment direction—

The Treasury-led sector assessments will help us identify and address the barriers to attracting the private capital we need—

And the principles will make sure the benefits flow to communities, workers and businesses around the country.

The National Interest Framework outlines criteria to assess sectors against—

To determine where it is in Australia's national interest to unlock private investment at scale.

It has an economic security and resilience stream, where domestic sovereign capability is necessary to protect our national security interests or ensure our economy is sufficiently resilient to shocks.

And a net zero transformation stream, where industries support global decarbonisation, and there is a reasonable prospect of a sustained comparative advantage.

We've already put the Framework into action.

It informed our Future Made in Australia investment focus in the Budget—

On refining and processing critical minerals, producing renewable hydrogen, exploring production of green metals and low carbon liquid fuels, and supporting targeted manufacturing of clean energy technologies including solar, and value adding in the battery supply chain.

This Bill will enshrine the Framework into law.

The Framework will be supported by transparent, Treasury-led analysis of the extent that sectors align with the National Interest Framework.

The Bill empowers the Government to direct Treasury to undertake independent assessments—

And these assessments will be tabled in Parliament to support transparency and rigorous decision-making and help deliver value for money.

Public investment will be an important and substantial part of our plan.

But it is only a sliver of the private investment needed to transform our economy.

The most important role for public investment will be to unlock the vast amount of private sector investment we will need to deploy—

An additional $225 billion by 2050 to transition the energy system and realise net zero opportunities in heavy industries, by one estimate.

And the Framework and the sector assessments will be instrumental here—

Identifying the barriers to private investment and opportunities to address them—

Informed by Treasury's expert analysis and evidence-based assessments, on top of their normal policy advice.

Helping private investors to make considered investment decisions, confident that they know where the Government stands.

The Bill will also outline a series of Community Benefit Principles.

Because we know just pumping capital into the transformation won't be enough if we don't pay attention to how we deploy it.

The principles will ensure our investments:

Promote safe, secure, well-paid jobs with good conditions -

Develop skilled, inclusive workforces -

Take a collaborative approach to engaging local communities, like First Nations communities and communities directly affected by the transition to net zero -

Supporting First Nations communities and traditional owners to participate in, and share in the benefits of, the transition to net zero -

Strengthen domestic industrial capabilities and our local supply chains -

And demonstrate transparency and compliance with Australia's tax system.

They'll be applied on a program-by-program basis, recognising the different contexts and opportunities of these investments—

Including through Future Made in Australia Plans, a new tool to support broader community benefits so they are delivered in a way that is a fit-for-purpose and project-specific.

These principles will be our lodestar to help ensure our people and our economy are the primary beneficiaries of change.

And we will consult on the details of how the principles and plans will be put into practice.

Our $22.7 billion Budget investment demonstrates our commitment to this agenda.

But it's only a fraction of what we need.

Public investment will show us the path to a Future Made in Australia but private capital will pave the way.

That's why our Future Made in Australia agenda is an investment strategy and a growth strategy.

To provide investors with the clarity, certainty and the cooperation they need.

And this Bill embeds the discipline and rigour to make it succeed.

The time to act is now.

The world is changing with or without Australia.

The golden opportunity in front of us will start shrinking if we take any longer.

We've already suffered through a decade of delay and denial under those opposite.

And if they had their way, we'd have another wasted decade ahead, down a nuclear road to nowhere.

We have a chosen a better path.

A path to prosperity.

A path that is mainstream and middle of the road.

A path that reflects the new economic orthodoxy of a churning and changing world.

A path backed by evidence and supported by science.

A path that will be rigorously interrogated and transparently explained.

A path that uplifts all Australians, not just some.

A path that leads to a future made right here in Australia.

Full details of the measure are contained in the Explanatory Memorandum.

FUTURE MADE IN AUSTRALIA (OMNIBUS AMENDMENTS NO. 1) BILL 2024

Today, I am proud to introduce the Future Made in Australia (Omnibus Amendments No. 1) Bill.

This Bill steps out how we will put the discipline and rigour established under the Future Made in Australia Bill into practice—

By expanding the roles of Export Finance Australia and the Australian Renewable Energy Agency so they can make investments consistent with our National Interest Framework.

To empower these agencies to help meet our Future Made in Australia goals—

To attract and facilitate more private sector investment -

And ensure private capital is deployed in the national interest.

The Bill contains two Schedules.

The first will allow the Government to make investments through Export Finance Australia in a way that's aligned with the National Interest Framework.

The changes in the Bill mean Export Finance Australia will be able to support a broader range of domestic transactions aligned with our National Interest Framework.

Export Finance Australia can already invest domestically in support of Australia's exports.

It's playing a pivotal role in growing Australia's vital critical minerals industry—

Overseeing the Government's $840 million investment to build Australia's first combined rare earths mine and refinery in the Northern Territory—

And building domestic capabilities like quantum computing that will unlock future industries for Australia.

This change will expand that role even more.

Projects coming forward for financing will be considered on a case-by-case basis.

And not only will these investments need to meet the strict and rigorous criteria established under this Bill—

They will also be assessed by Export Finance Australia's expert team of investment analysts—

And must meet the high bar expected of Export Finance Australia's independent Board, before they are referred to Government for a decision.

The second Schedule will expand the role of the Australian Renewable Energy Agency -

And help drive Australia towards our renewable energy superpower goal.

ARENA is an extremely highly respected agency and a proud Labor legacy. It has a strong track record of supporting the commercialisation of Australian innovation needed to not only address climate change, but to capitalise on the huge economic and jobs opportunities that tackling climate change represents for our renewable blessed nation.

We are building on this record of success and we will allocate $6 billion in statutory funding for ARENA for renewable energy investments over the next 15 years.

A big chunk will be used to establish the Future Made in Australia Innovation Fund—

To commercialise innovative technologies critical to net zero in areas like green metals, batteries, low carbon liquid fuels and clean technology manufacturing.

And funding will also go to establishing the Solar Sunshot and Battery Breakthrough Initiatives, and providing long-term funding certainty for ARENA's ongoing priorities.

This 15-year funding will help ARENA invest in lasting, forward-looking opportunities -

And we're legislating it, so the funding is above the cut and thrust of the annual Budget cycle.

These changes enhance governance at Export Finance Australia and ARENA—

Making the Minister for Finance a responsible minister for both agencies, alongside relevant existing ministers.

And allowing ARENA to employ its own staff and make it easier to draw in other expertise when needed.

To transform our economy and grasp the vast jobs and opportunities of the energy transition, sizeable amounts of public investment will be deployed by both these agencies.

And our goal here is for public investment to catalyse private investment that's in the national interest.

This Bill works together with theFuture Made in Australia Bill,to set us up to become an indispensable part of the global net zero economy.

The Future Made in Australia Bill lays the foundations upon which our entire agenda will be built—

Embedding into law the strict criteria and robust processes that will guide our decisions and set us up for success.

This Omnibus Bill will allow key government agencies to put their shoulders to the wheel—

To help make investments that put our agenda into action, underpinned by the discipline and rigour the first Bill demands.

And there will be more legislation and consultation to come -

Like for our hydrogen and critical minerals production tax credits—

Which will need to be legislated once we've consulted stakeholders and bedded down the implementation details.

But everything we do from here—

Will be built on top of the solid foundations in the legislative package we are proud to introduce today.

A great transformation is underway.

Australian energy can power it.

Australian resources can build it.

Australia's regions can drive it.

Australian researchers can shape it.

And Australian workers can thrive in it.

That's what these Bills are all about.

That's the future we can make together, right here in Australia.

Full details of the measure are contained in the Explanatory Memorandum.