Coalition to oppose $15bn industry fund

Peter Dutton will reject the $15bn National Reconstruction Fund over concerns it ‘lacks transparency, exposes taxpayers to risk and enshrines inappropriate ministerial discretion’.

Peter Dutton in question time on Monday. Picture: NCA NewsWire / Gary Ramage

Peter Dutton will reject Anthony Albanese’s $15bn National Reconstruction Fund over concerns it “lacks transparency, exposes taxpayers to risk and enshrines inappropriate ministerial discretion”, as the Coalition ramps up attacks on the government over the cost-of-living crunch and energy prices.

The Australian can reveal that shadow cabinet on Monday night adopted a position to formally oppose the Prime Minister’s National Reconstruction Fund Corpor­ation, ahead of the enabling legis­lation returning to the parliament this week.

But the Coalition, which will support the government’s procedural changes strengthening public disclosure of ministerial ­appointments in the wake of Scott Morrison’s multiple ministries scandal, is yet to land a final position on Labor’s tougher safeguard mechanism.

Amid growing pressure from major companies and industry groups for a bipartisan agreement, the Coalition is expected to announce its formal response to Climate Change and Energy Minister Chris Bowen’s safeguard mechanism early next week.

Mr Bowen on Tuesday will launch a pre-emptive strike on the Coalition, following speculation last week that it would oppose new rules requiring the nation’s 215 biggest-polluting facilities to cut emissions by almost 5 per cent each year out to 2030.

Senior Coalition sources said the partyroom, which includes regional MPs who oppose the tougher rules and moderate MPs who support stronger climate action, would “ultimately decide” on the safeguard mechanism, which is due to commence on July 1.

The National Reconstruction Fund, which will provide loans, ­equity investment and guarantees for modern manufacturing, clean energy, defence and medical projects and technologies, has been modelled on the Clean Energy Finance Corporation and is the ­Albanese government’s lead co-investment financing vehicle.

Deputy Opposition Leader Sussan Ley said the Coalition was opposing the fund because “it is bad for taxpayers, bad for businesses, bad for manufacturers and bad for the economy”.

She said the Coalition would use Labor’s “pet project” to expose the government’s use of taxpayer funds at a time when households face a “cost-of-living crunch and skyrocketing mortgages”.

“Labor’s National Reconstruction Fund fails to address the issues our manufacturers need the government to show leadership on: energy prices, disrupted supply chains, and acute labour shortages,” Ms Ley told The Australian.

Both the Opposition Leader and Mr Albanese will front their first partyroom meetings of the year on Tuesday, where they will outline their priorities for 2023 and discuss the referendum on enshrining an Indigenous voice to parliament, which is expected to be held in October.

Ahead of debate in parliament on Tuesday about legislation to strengthen public disclosure of ministerial appointments, following recommendations outlined in Virginia Bell’s inquiry last year, Mr Albanese said: “We know there have been consequences of the decision of Scott Morrison to inexplicably take over so many different portfolios. I can … assure Australians that I have only been sworn into the position of Prime Minister, none others, and I have no ­intention of doing so. But we know that there are consequences, including with the legal action that was taken.”

Mr Dutton said “our position has not changed” in relation to legislation, which ensured greater transparency around ministerial appointments.

Speaker of the House Milton Dick on Monday rejected demands by Greens leader Adam Bandt for Mr Morrison to be referred to the privileges committee.