The government has introduced legislation to Parliament to establish the $15 billion National Reconstruction Fund to re-invigorate Australia's manufacturing base.
The National Reconstruction Fund (NRF), launched by Minister for Industry and Science Ed Husic in a speech to the National Press Club on 29 November, will invest across seven priority areas of the economy, including defence capability, to facilitate the manufacture of products domestically.
In addition to defence capability, other focus sectors will be renewables and low emission technologies; medical science; transport; value-add in agriculture, forestry and fisheries; value-add in resources; and enabling capabilities.
The NRF is modelled on the $10 billion Clean Energy Finance Corporation, which Labor established when last in government.
It will be governed by an independent board making independent investment decisions and will be able to invest through a range of financing including loans, equity and guarantees.
The government has begun public consultation to further define the scope of the seven priority areas for investment and how the fund will make investment decisions.
“The National Reconstruction Fund will play a key part in ensuring Australia is a country that makes things," Prime Minister Anthony Albanese said. “It will help create secure local jobs, boost sovereign capability and diversify our nation’s industry and economy.
“The National Reconstruction Fund will help Australia capture the opportunities of today and tomorrow, building on our natural and competitive strengths to create a future made in Australia.”
“The pandemic made it clear that Australia must be a country that supports local businesses and industries to make more things here," Minister for Finance Katy Gallagher said.
“This is a great opportunity to support Australian innovation and industry after years of uncertainty and lack of a plan.”
“This is a nation-building fund; and represents one of the largest peacetime investments in our country’s manufacturing capability in living memory," Minister for Industry and Science Ed Husic added. “The National Reconstruction Fund will be the connective tissue between human capital and Australia’s technological potential.
“It is one way we will realise our ambition to better connect industry to science; to ensure Australian-made discoveries can be commercialised and scaled in Australia.
“We are taking a collaborative approach and consulting across industry, the finance sector, unions and the community on the implementation of the NRF.
“This consultation is a crucial first step to guide these significant investments.”