John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industry and Innovation, Senator Lundy. My question concerns the Clean Technology Investment Program. In light of the story in this Tuesday's Financial Review reporting that the Clean Technology Investment Program had been paused to allow the government to collect information on how the program is being rolled out and to enable the Expenditure Review Committee to assess the program, can the minister advise what is the nature of the information being collected and is there any particular problem or flaw suspected in the design and implementation of the program that has prompted this review?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I thank Senator Madigan for his question. There has been some speculation about the government's grants programs due to reports in newspapers, and I welcome this opportunity to provide some facts. The government is collecting additional information on how grants programs are being rolled out and we are going through a process of examining every dollar of spending to make sure taxpayers are getting value for money. This is a normal part of the budget process and is exactly what fiscally responsible governments do. This means that while this process is underway there will be a brief pause in the granting of funds. However, at this stage, all the background work such as the preparation of guidelines, assessment of applications et cetera is continuing in the normal way.

I can assure the senator there are no design flaws in the Clean Technology Investment Program and it is being implemented very well. In fact, it is a very popular program with industry, as I am sure the senator is aware, and is assisting the manufacturing sector make the transition to a clean energy economy.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. Can the minister advise how long the program will be on hold? Given the statement by the Australian Industry Group's Chief Executive, Innes Willox, that this was the 'only source of adjustment assistance available to the vast bulk of manufacturers' and that 'we are very alert to the noises we hear about the program being on hold', isn't the minister concerned that putting a hold on the program will create the same investor uncertainty that the government insisted was the reason the carbon tax and related bills needed to be rushed through with such urgency?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

Again, to reassure the senator and the broader manufacturing community, I can confirm that at this stage all the background work, including the receipt and assessment of applications, is continuing in the normal way. The greatest uncertainty about programs such as this, programs which are providing real and practical help to manufacturers not only to prepare for a clean energy future but also to improve productivity and competitiveness, is from the policies of those sitting opposite. Those opposite have a stated policy of repealing the Clean Energy Future Act, which includes the carbon price and its associated measures such as the Clean Technology Investment Program. This stance is completely irresponsible and produces nothing but the damaging type of uncertainty that Senator Madigan has articulated in his question. So if there was one way to resolve this uncertainty it would be to join with us in government in convincing— (Time expired)

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Of the 24 projects funded so far by the program as listed on its website, what percentage of the total amount of equipment purchased to date by program grant recipients is Australian made? Is the Expenditure Review Committee assessing the performance of the program and its level of support for Australian manufacturers to supply equipment into the program?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

The benefit for local industry from investments in clean energy capital was clearly in the mind of the government when designing the Clean Technology Investment Program. That is why the program includes local industry participation as one of the merit criteria used to assess the merit of each application. So, by design, the Clean Technology Investment Program supports local manufacturers and local businesses. A concrete example is the grant that Bundaberg Sugar has been awarded. This $800,000 grant will help fund the installation of locally produced extraction mills that will reduce the amount of pollution produced by Bundaberg Sugar per tonne of output by 17 per cent—a win for Bundaberg Sugar, a win for local industry and a win for the environment—but none of that would have been possible without the Clean Energy Future plan.