Coalition questions whether close friendship swayed Labor on $470m tech contract

The opposition is calling for a parliamentary inquiry into Industry and Science Minister Ed Husic’s handling of Labor’s $470 million quantum computing bet on US tech firm PsiQuantum, after it emerged his key adviser is a friend and former housemate of an executive at a venture capital firm that invested in the company.

The Coalition has raised concerns in estimates and in a letter to the Australian National Audit Office about ministerial adviser Ellen Broad’s friendship with Kate Glazebrook, head of impact at Australia’s largest venture capital fund, Blackbird Ventures.

Opposition frontbencher Paul Fletcher has been leading the opposition’s prosecution of the quantum tie-up.Credit: Dominic Lorrimer

This masthead is not suggesting that Broad and Glazebrook benefited in any way from the deal, but opposition frontbencher Paul Fletcher said the friendship was worrying because “there are serious questions about how PsiQuantum and its existing investors such as Blackbird got rapid, preferred access to Ed Husic”.

In a series of social media posts, the pair talk about sharing a house in London around 2018 and call each other a “friend”, “inspiration”, “important and influential”.

“Fast becoming that person who talks about our London-house-sharing history not because it was loverly times (it was) but because it is an opportunity to brag about knowing an important and influential person. You’re marvellous”, Broad said on Twitter in 2019.

Glazebrook responded: “The feeling is totally reciprocated my friend!”

When Broad announced on LinkedIn she was moving from academia to Husic’s office after the election in 2022, Glazebrook responded with a hand-clapping emoji.

Glazebrook stayed with Broad in late 2022 when in Canberra on work duties, according to multiple sources with direct knowledge of the PsiQuantum deal. Neither Blackbird nor Husic’s office denied this claim.

Those sources also confirmed Broad – whose remit in the office included quantum, women in science and artificial intelligence – was Husic’s chief staff adviser on the quantum investment. Glazebrook, as the firm’s head of impact, was involved in showcasing PsiQuantum in 2022 and 2023, at the same time it was in talks with the government.

Glazebrook was not on the Blackbird team that invested in PsiQuantum, but worked with the company as Husic visited its headquarters in the US in late 2022 and early 2023.

She went on maternity leave from July 2023 and was not active when the government finalised its deal with PsiQuantum.

Husic appointed Glazebrook to the Innovation and Science Australia Board, which encourages investment, in December last year.

“Ed Husic must explain what steps he and his office took to manage this obvious conflict of interest and whether any ministerial standards were compromised over the course of this investment decision,” Fletcher said.

“There is clear evidence of a close personal friendship between Ed Husic’s senior adviser Ellen Broad and senior Blackbird executive Kate Glazebrook.”

A spokesman for Husic said: “Throughout the investment process, probity arrangements were overseen by a dedicated external probity adviser, no concerns were raised. Blackbird did not introduce, facilitate or attend any meetings between the Minister, his office and PsiQuantum.”

“The investment, made in partnership with the Queensland government, will deliver a quantum manufacturing precinct creating up to 400 new jobs for scientists”.

“The investment has been subject to a lengthy and rigorous due diligence process that included legal, financial, technical and national security review.”

Tech firm PsiQuantum won $1 billion from the federal and Queensland governments to compete in the global race to a quantum computer capable of vast leaps in processing power.

Husic has defended the tie-up – which was ticked off by expenditure review committee of cabinet and eventually endorsed by the chief scientist – and said he welcomed scrutiny on his attempt to put Australia at the forefront of a frontier technology.

Industry and Science Minister Ed Husic.Credit: Alex Ellinghausen

The Australian National Audit Office has flagged it may probe the investment.

There are other links between PsiQuantum, Blackbird and Husic’s office.

In September 2022, Husic appointed Clare Birch, then of Blackbird, to the national quantum advisory committee.

In October of that year, a Blackbird official exchanged emails with a member of Husic’s staff about an event to which Blackbird was inviting Husic. The names of the people sending the emails were redacted under Freedom of Information laws.

In May 2023, Husic launched the National Quantum Strategy with Nomad Atomics, a company funded by Blackbird.

PsiQuantum was given a briefing ahead of the strategy’s release, emails released under Freedom of Information show, although other companies may also have received similar briefings.

A spokeswoman for Blackbird said the appointments were made on merit and were ”unrelated to the PsiQuantum investment”.

“Blackbird is proud of the appointments given to our team members on relevant federal advisory boards, this is a reflection of their contribution to Australia’s startup ecosystem,” the spokeswoman said.

We believe it is important for Blackbird to engage with a wide range of industry stakeholders to support the growth of our portfolio companies.”

The federal and Queensland governments will invest up to $470 million each into PsiQuantum through a combination of grants, loans and equity. Husic recently said Australia missed out on bringing Intel to Australia in the 1990s, suggesting the quantum start-up presented similar prospective value.

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up for our weekly Inside Politics newsletter.