David Pocock (ACT, Independent) Share this | Hansard source

I rise to speak to the Future Made in Australia bills and foreshadow a second reading amendment circulated in my name. The Future Made in Australia package goes to an issue at the core of Australia's future: our place in the global transition to renewable energy and the industries of tomorrow. The framework is an opportunity to build stronger industrial base, transition our economy and reduce emissions. But it is not enough to have a framework; we must ensure that it works in practice to benefit Australians. A future made in Australia must operate with transparency, accountability and a clear commitment to decarbonisation.

We are in a time of global transformation, where the choices we make now will determine whether Australia thrives as a renewable energy superpower or misses the boat. We have seen countries like the United States and the European Union act decisively, investing hundreds of billions of dollars through initiatives like Inflation Reduction Act and the European Green Deal. Australia is clearly lagging, and it's time to catch up.

There's a significant piece missing from the Future Made in Australia package, and that is electrification. Electrification presents an incredible opportunity for Australian households and small businesses, at a time when they are doing it so tough, to lower energy bills and reduce their carbon footprint. It's a commonsense solution to both our cost-of-living crisis and our climate crisis, yet the government has again failed to seize this opportunity. In the United States under the Inflation Reduction Act, we've seen the success of household electrification: billions of dollars in rebates and subsidies have been provided for rooftop solar, batteries and energy-efficient appliances. The result has been significant cost savings for households and a meaningful reduction in emissions. It's well beyond time for the Australian government to put forward a substantial package to supercharge household electrification, particularly for low-income households and rental properties and for people living in social and affordable housing. A separate and ambitious package is needed for electrification—one that places Australian households and small businesses at the centre of our transition to a renewable energy future.

There's a clear need in this FMIA legislation for more transparency and accountability in sector assessments. Even just looking at the framework as it stands, there is significant room to improve the bill and give Australians confidence that it will deliver on the promise to transform Australian industry. When it comes to government spending on industry, public trust is critical, particularly when we're talking about spending on this huge scale—$22.7 billion has been flagged under the FMIA framework. Australians deserve to know that this money is being spent wisely and that it is delivering value to our communities.

But recent allocations of billions to quantum and solar manufacturing without sector assessments have clearly shaken public confidence. They underline a case for funding decisions to be informed by independent, robust sector assessments, not captain's calls. These assessments should draw from a wide range of expert opinions, including the Productivity Commission, the CSIRO and the Climate Change Authority, among others. This will help us avoid the policy traps of short-term thinking and overreaching. I'll propose a series of amendments to add transparency and integrity to the framework.

There is also a case to look harder at the economic benefit for Australia. With such a significant investment of taxpayer dollars, Australians also deserve to be sure that the economic benefits flow primarily to Australians and Australian businesses, not to foreign corporations. Under the current Commonwealth Procurement Rules, foreign companies operating in Australia are often treated as Australian businesses. This is a massive loophole that we must close. The government should develop a very clear definition of what constitutes an Australian company, ensuring that at least 51 per cent of the ownership and the governance is actually by Australians. When I get out and talk to people about our procurement rules and the way the government and departments think about Australian businesses, the fact that any multinational can come here and get an ABN and be a dinky-di Australian business is appalling. It is not up to scratch, and this needs to be addressed. We have to ensure that the benefits of our transition to renewable energy remain within our borders and strengthen our national economy. We have to ensure that we're not having a future made in Australia made by foreign multinationals, who are minimising their tax and siphoning billions offshore. We've seen that happen with the gas industry. We have to ensure it doesn't happen in the transition.

Emissions reductions also need to be at the heart of the framework. Climate change is not just an environmental issue; it is a profound economic threat and economic opportunity. The FMIA framework must place emissions reductions at its heart. The legislation should be explicit. This framework exists to help decarbonise our economy and meet our emissions reductions targets. This isn't just about creating new industries; it's about ensuring these industries contribute to reducing their own climate impact. For this reason, sector assessments should include an analysis of emissions, ensuring that we are meeting obligations under the Paris Agreement.

We also need to reject fossil fuel funding as part of the FMIA framework and legislation. With emissions reductions at the heart of the framework, it makes no sense to allow funds to flow to the fossil fuel industry. The door to fossil fuel subsidies must be closed, and the FMIA framework must be clear that it is supporting the industries of the future, not the industries of the past, who are desperately trying to extend their social licence at a time when Australians recognise we need to be cracking on with the transition. It's no surprise that they're pouring millions into sponsoring our favourite sporting teams and arts events; they know that they've had their time. They know that the government should be showing leadership to truly transition our economy, not to try to have a bet each way, not to try to say: 'We're doing all this great stuff—the FMIA, building economy of the future—and also we're going to continue to expand coal and gas. We're going to tick off another three coalmine extensions. Give us your list of gas approvals that you need. We're going to facilitate those with legislation through this place and with the relevant approvals.' This needs to end, and with legislation that comes through this place we need to start being more explicit that it's about the future. It's about building a future economy and doing right by young Australians—and Australians yet to be born. We have to lift our gaze and think longer term than we currently are.

The Future Made in Australia framework is a step in the right direction, but, as I've highlighted, I think it's far from perfect. It needs stronger governance, it needs greater transparency and it needs a sharper focus on emissions reduction. Most importantly, we need to ensure that economic benefits flow to Australian households and businesses, not to foreign owned entities or outdated industries. Now is the time for decisive action. Australians want their government to be braver, to actually take on the big challenges we face. Australia cannot afford to fall behind in the global energy transition. I call on the government to seize this opportunity to create a future that is made in Australia—truly made in Australia—by Australian companies, powered by renewable energy, driven by innovation and benefiting all Australians, present and in the future.