Anthony Albanese has used a year-ending speech to spruik the benefits of a multi-billion dollar manufacturing fund.
Subscribe now for unlimited access.
or signup to continue reading
The prime minister sought to cut through the chaos of the final sitting weeks with a big-picture pitch on Wednesday night.
The government's National Reconstruction Fund will funnel $15 billion into seven priority areas: resources, agriculture, transport, medical sciences, renewables and low-emissions technology and defence.
It has finalised the fund's investment mandate and is ready to start operating, eight months after it passed through parliament.
"Money in the bank, ready to invest in new jobs, new skills, new technologies and new industries," Mr Albanese said at the National Press Club on Wednesday night.
"Ready for us to make our future here. And so many of these new opportunities will be powered by renewable energy."
The mandate targets a medium to long-term return between two and three per cent above the five-year government bond rate, which sits at 4.2 per cent.
The fund will run on a commercial, self-sufficient basis, with the mandate demanding due diligence on investments and the expectation of a return to the taxpayer.
Climate change policy and sustainable finance expert Martijn Wilder is chair of the fund, and said the signing of the mandate was significant.
"The mandate provides the flexibility for the NRF Corporation to drive investment across the seven priority areas to transform the Australian economy, in line with the government's commitment," he said in a statement.
"It will also see the NRF Corporation work closely across government with other critical agencies such as the Net Zero Economy Agency, the CEFC and others to maximise our impact."
The coalition opposed the fund, citing the risk of an inflationary impact and productivity stalling through the use of equity instead of grants.
The Greens backed it in after securing amendments to ensure the money wouldn't be invested in coal and gas projects.
The prime minister was delivering the Gough Whitlam Oration, where he also outlined his broad agenda.
Four key priorities included relieving pressure on families, strengthening Medicare, an Australian-made future and home security.
"To engage with the urgent responsibilities of getting costs down for families, getting wages up for workers and getting the budget onto a stronger foundation while planning and building for an economy, an energy grid, a workforce, a health system and a region that will look fundamentally different in the decades ahead," he said.
"A responsible and reforming government can't treat these as alternating tasks - or sequential ones ... you have to embrace both and manage both."
Australian Associated Press
