Alan Eggleston (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Has the government’s decision to axe the vital Commercial Ready program resulted in numerous job losses and the loss of $1.4 billion of investment in the development of new inventions and medical cures and treatments?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

There was no secret about just how tough the last budget was going to be. Faced with the inflationary legacy that had been left to us by the previous government—

Opposition Senators:

Opposition senators interjecting—

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

We inherited an inflationary legacy from the Howard government, which has produced the highest inflation in 16 years. This meant we had to make some pretty tough decisions. The budget contains disciplined savings measures to demonstrate our commitment to fiscal responsibility, to modernising government spending and to putting downward pressure on inflation. We understand just how damaging inflation is for working people. Closing Commercial Ready was very much at the heart of a very tough call. Of course, it 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.

All existing commitments under Commercial Ready—that is about $200 million over four years—will be met, and all regional AusIndustry offices originally established with the Commercial Ready funding will remain open. This is a budget about resetting priorities, and I understand that the previous government endorsed the Productivity Commission view, which, I note, argued that there was a duplication of programs and that Commercial Ready was not in fact addressing the issue of market failure. I did not hear any complaints about the Productivity Commission in the past from those opposite.

One of our biggest problems is tackling climate change. That is why we have established new budget measures through this last budget—some $2.3 billion worth of climate change initiatives, such as the new Clean Business Australia fund. Three-quarters of the savings from Commercial Ready during the period of 2008-09 will go into Clean Business Australia programs in line with our election commitments. These programs include Climate Ready, which will support innovation in water recycling, waste recovery, small-scale renewable energy, green building materials, energy efficient appliances and other areas. Climate Ready grants will match company spending on R&D and proof-of-concept and commercial activities dollar for dollar.

Funding for these programs actually begins next month, and we will continue to support innovative Australian businesses through the research and development taxation concession measure, the tax offset measure, the COMET program and venture capital programs. We will also build on support with new initiatives, such as Enterprise Connect and the Green Car Innovation Fund. I am very pleased the you have asked this question, Senator. Unlike our predecessors, this government is not leaving innovation and industry policy on autopilot. We are taking the tough decisions, and we are establishing clear priorities to produce the best outcomes for Australia.

Alan Eggleston (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the respected Australian Export and Industrialisation Advisory Corporation wrong, Senator Carr, when they say that the following inventions and medical cures are at risk as a result of your decision? I will list some of the things which are at risk: a prostate cancer cure, advanced IT safety programs, other IT projects, a new electric car, an insulin nebuliser, a new method for vascular repair, a new form of eye treatment, a cure for spinal injuries and new mining technologies.

Alan Ferguson (President) Share this | Link to this | Hansard source

Before calling Senator Carr I would remind Senator Eggleston that his question must be addressed through the chair.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

It is a fact that a number of companies have indicated that they are disappointed by the decision that the government has taken with regard to Commercial Ready. A number of companies have made claims in the press about access to government programs, some of which are untrue. Claims have been made and, despite the fact that some journalists who have contacted my office have been advised that the claims are untrue, they have sought to publish those comments irrespective of the facts in this regard.

We have had one case in recent times of Permo-Drive, as the senator mentioned, which is an electric truck. It uses one of the technologies that have been indicated. It has been said that this was a company that would be placed in serious financial difficulties as a result of the termination of the Commercial Ready program. The case that the company makes is somewhat difficult— (Time expired)