Treasury boss to call shots under Future Made in Australia plan

Treasury Secretary Steven Kennedy would be given new powers to conduct ‘sector assessments’ to determine whether projects qualify for support under Labor’s Future Made in Australia plan.

Treasury Secretary Steven Kennedy. Picture: NewsWire / Martin Ollman

Treasury boss Steven Kennedy will be tasked with assessing which sectors of the economy could receive the billions of dollars in taxpayer funds that are expected to flow from Labor’s landmark green manufacturing initiative.

Tabled in parliament by Jim Chalmers on Wednesday, the legislative framework for Labor’s $22.7bn Future Made in Australia plan will grant the Treasury secretary the authority to conduct “sector assessments” to guide additional government support.

The legislation also makes clear that recipients of support will need to develop written Future Made in Australia “plans” explaining how their project would deliver benefits to the community.

The bill’s explanatory memorandum says sector assessments will “improve understanding of how government can best leverage private investment in Australia’s national interests, and help inform rigorous government decision making”.

“The bill provides for the Secretary of the Department of Treasury, through a direction by the minister … to conduct sector assessments,” it says.

The proposed assessments will determine the extent to which projects align with the two key streams under which support can be provided – the “net-zero transformation” stream or “economic resilience and security” stream.

Under the first stream, the sector receiving government support must be one in which Australia has a “sustained comparative advantage” and where public investment is needed to unlock greater emissions reductions.

Under the latter stream, the sector receiving support must represent an “efficient way to deliver economic resilience and security”.

While ministers will determine which sectors are subject to evaluation, sector assessments must be tabled in parliament within 30 sitting days. This opens the government up to potential criticism if that advice is ignored.

Expertise and perspectives from industry, investors, workers, communities will be tapped for their advice to form the Treasury’s secretary assessments.

Writing in The Australian, Jim Chalmers says the plan will underwrite a “new generation of prosperity in an economy powered by cleaner and cheaper energy”.

“We are in the middle of the biggest changes in the global economy since the industrial revolution,” he writes. “The legislation … is all about realising our genuine advantages and recognising our future growth prospects lie at the intersection of our industrial, resources, skills and energy bases and our attractiveness as an investment destination.

“The world is moving on and Australia needs to move with it.”

Speaking during question time, the Treasurer lauded the industry policy overhaul, which he maintained would provide a rigorous framework to ensure public funds were wisely spent.

“Future Made in Australia is all about secure jobs and more opportunities and a new generation of prosperity in an economy powered by cleaner and cheaper energy,” Dr Chalmers said. “It is all about broadening and deepening our industrial base and becoming a renewable energy superpower.”

Opposition Treasury spokesman Angus Taylor said while the Coalition would consider the government’s proposal, on first glance it appeared to provide only limited detail. “Today’s legislation does not provide any clarity for manufacturers who have been suffering under Labor’s economic mismanagement,” he said.

That view was shared by Nationals leader David Littleproud who took aim at the government over its planned promotional campaign for its industry initiative.

“What we do know is they’re prepared to spend $45m of Australian taxpayers dollars on an advertising campaign,” he said.