Manufacturers have welcomed the Albanese government’s push for a $15 billion National Reconstruction Fund to revive the local manufacturing industry.
Industry and Science Minister Ed Husic introduced legislation on 30 November to establish the $15 billion National Reconstruction Fund, which Labor took to the federal election.
Minister Husic said the fund will be made up of a combination of loans and equity, including being used to leverage private sector investment.
“Governments can and should strategically and thoughtfully invest in the industries of the future,” Husic told the National Press Club on Tuesday, 29 November.
“By investing in Australia we will have mass and we will have momentum and we’re not going to let it fall away,” he said.
The fund has seven priority areas including resources, agriculture, transport, medical science, renewables, defence and future technologies like robotics and quantum.
Increasing domestic manufacturing will also shore up supply chains, which were strained during the pandemic.
“We want Australia to be a country that makes things again,” Minister Husic said.
“We want more Australian businesses to think globally and to make locally,” he said.
Manufacturers also backed the boost to local manufacturing, with the Australian Food and Grocery Council announcing its support for the $15 billion fund.
AFGC CEO Tanya Barden said food and grocery manufacturing is the nation’s largest manufacturing sector and has the potential to almost double in value by 2030 with the right policy support.
“Food and grocery manufacturing can play a key role in our economic growth as a high-tech, high-value-add sector that capitalises on our quality produce and technical abilities,” Barden said.
Australia’s food and grocery manufacturing industry is currently worth almost $134 billion.
AFGC said that value can grow to $250 billion by 2030 with targeted investment and innovation.
“This fund recognises the critical importance of domestic industry and sovereign manufacturing capacity to Australia.,” Barden said.
“We look forward to working with the government to help create the strong manufacturing capabilities that will secure the nation’s future,” she said.
With news from AAP. Content has been edited for style and length.