Federal Labor reveals $15bn plan to diversify economy after COVID-19 pandemic

Federal Labor has revealed its plans for a $15bn national reconstruction fund to diversify the economy after the coronavirus pandemic.

Federal Labor wants to establish a $15bn national reconstruction fund in a bid to create jobs, drive regional development and diversify the economy post-pandemic.

Opposition Leader Anthony Albanese said COVID-19 had exposed “serious deficiencies” in Australia’s economy, especially with the ability to manufacture products and be globally competitive with innovation.

Under the plan, a Labor government will partner with the private sector, including superannuation funds, to support investments that demonstrate they will boost the economy and employment.

“From commercialising our historic capacity in science and innovation, to boosting the development of medical devices and pharmaceuticals, through to reviving our capability to make cars, trains and ships, today’s announcement will support the businesses in these industries to secure the capital and investment to grow and prosper,” Mr Albanese said in a statement.

Opposition Leader Anthony Albanese says the fund will help boost the economy. Picture: NCA NewsWire/Flavio Brancaleone

“If there is anything that COVID has taught us, it is the need for Australia to be a place which makes things — to have our own industrial and manufacturing capabilities – our own sovereign capabilities.”

The fund would be legislated and then governed by an independent board.

“It will provide $15bn of investment through a combination of loans, equity, co-investment and guarantees,” Mr Albanese said.

“The fund will be administered on the basis that it will achieve a return to cover borrowing costs, with an expected positive underlying cash impact.”