Labor braced for 13-day key legislation push

Anthony Albanese has a 13-day window in March to push key legislation through parliament.

Prime Minister Anthony Albanese. Picture: Roni Bintang/Getty Images

Anthony Albanese has a 13-day window in March to push key manufacturing, housing, climate change and voice legislation through parliament, amid concerns the Coalition and Greens could undermine the May 9 budget and put Labor’s election manifesto at risk.

Senior Albanese government ministers will launch negotiations with key crossbenchers and the Greens this week to avoid Labor’s marquee $15bn National Reconstruction Fund, $10bn Housing Australia Future Fund and new safeguard mechanism being ­watered down or blocked.

The Australian can reveal that Peter Dutton’s frontbench on Monday is expected to oppose the off-budget housing fund, after last week rejecting the NRF and safeguard mechanism overhaul.

With the NRF, safeguard mechanism and housing fund expected to be in place from July, legislative delays would derail the government’s economic and climate change agenda and endanger key measures in Jim Chalmers’ second budget.

The Greens, who are in discussions with Industry Minister Ed Husic, Climate Change Minister Chris Bowen and Housing Minister Julie Collins this week, will meet on Tuesday to discuss their demands over the NRF, housing fund and safeguard mechanism.

Greens Senator Adam Band. Picture: NCA NewsWire/Gary Ramage

Greens leader Adam Bandt, who holds the balance of power in the Senate with 11 senators, wants the government to ban new coal and gas projects and prohibit investment in modern manufacturing that relies on fossil fuels and destroys native forests.

Senior government sources on Sunday were confident of winning the support of the Greens and two crossbenchers to get the NRF legislation through the Senate.

The NRF, which is modelled on the Clean Energy Finance Corporation, is the government’s lead co-investment vehicle that will provide loans, equity investment and guarantees to boost modern manufacturing across the renew­ables, medical science, defence, resources and agriculture sectors.

The Treasurer said the NRF was designed to help combat the “inflation challenge”.

“We don’t have an inflation challenge in our economy because there’s been too much investment in our supply chains, but because there’s been too little for too long,” he said.

“It’s an important thing we need the parliament to pass so we can invest in a more modern, broader, more diverse and deeper industrial base which will serve us better, particularly at times of extreme international volatility.”

The NRF legislation will be debated in the House of Representatives on Monday, with the Housing Australia Future Fund legislation slated for Tuesday and Mr Bowen’s safeguard mechanism crediting amendment legislation expected on Wednesday.

With Senate estimates hearings this week, the government will have three sitting weeks in March to pass a raft of critical legislation through the parliament ahead of the budget.

Treasurer Jim Chalmers. Picture: NCA NewsWire/Tertius Pickard

Deputy Opposition Leader Sussan Ley. Picture: Martin Ollman/Getty Images

Deputy Opposition Leader Sussan Ley said the International Monetary Fund had “warned against” off-budget vehicles like the NRF and housing future fund.

“It all has to be paid back and, of course, it’s going to add inflationary pressure,” she told Sky News.

“This NRF is not answering the needs of struggling manufacturers. It’s answering the needs of the Labor Party and the unions because it’s not addressing the needs of the economy right now, which is workforce shortages, supply chain disruption and energy costs.”

The Australian understands independent ACT senator David Pocock, who will meet with Mr Husic and Ms Collins this week, will withhold final positions on the NRF and housing fund until both pass through the lower house.

Senator David Pocock. Picture: Martin Ollman/Getty Images

Industry Minister Ed Husic. Picture: NCA NewsWire/Gary Ramage

Housing Minister Julie Collins. Picture: NCA NewsWire/Nikki Short

He will advocate for a more ambitious social housing target over concerns that 30,000 new houses will not come close to meeting current demand. He is also expected to push Ms Collins on doubling the size of Labor’s fund to $20bn or include a mechanism to enable annual top-ups.

The Greens will put forward a raft of amendments to the government’s housing policy, with senior party sources saying the changes to the bill under consideration were “in the double digits”. Senior Greens MPs will meet on Monday to announce a list of demands focused on increasing funding for social and affordable housing.

As the clash over government legislation escalates, Speaker of the house Milton Dick is expected to announce a date this week for the Aston by-election in Melbourne, sparked by the resignation of former Coalition education minister Alan Tudge. Once Mr Tudge’s formal resignation is processed, Mr Dick will consult the Australian Electoral Commission and party leaders before revealing the by-election date.

Senior Coalition sources said they had launched focus groups in the suburban Melbourne seat, held by the Liberal Party on a 2.8 per cent margin, which were reporting cost-of-living and interest rates as top voter issues.