Anthony Albanese’s $15bn plan to restart car industry

Anthony Albanese will move to revive car manufacturing in Australia under a $15bn plan to ‘drive regional economic development’ and grow the industrial workforce.

Labor leader Anthony Albanese. Picture: Flavio Brancaleone

Anthony Albanese will move to revive car manufacturing in Australia under a $15bn plan to “drive regional economic development” and grow the industrial workforce, as he faces a showdown with the unions this week over Labor’s ­support for free trade.

At the ALP’s virtual national conference beginning on Tuesday, the Opposition Leader will unveil plans for a National Reconstruction Fund that will partner with business and super funds to “support investments that demonstrate they will grow the economy and increase employment”.

The jobs announcement comes as Mr Albanese repackages a Bill Shorten-era goal for a policy of 26 weeks paid parental leave on full wages, with the Tony Abbott-style policy leaving some MPs concerned that Labor’s messaging has reverted to one of a “big spender”.

The NRF, to be legislated with an independent board, will be seeded with $15bn and will invest in new ventures via a combination of loans and equity stakes.

The announcement flagged plans to revive the capability to “make cars, trains and ships”.

“The COVID pandemic has exposed serious deficiencies in Australia’s economy, in particular our ability to manufacture products and be globally competitive when it comes to innovation and technology,” Mr Albanese said. “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, the announcement will support the businesses in these industries to secure the capital and investment to grow and prosper.”

The fund will focus on the sectors of low-emission technologies, food and beverage processing, defence, medical science, and transport. It will also support businesses that have ventures to add value to the resources sector, including for more raw materials to be processed here rather than be exported.

In a move to portray party unity, former leader Mr Shorten will introduce his rival Mr Albanese, who will make an opening address at the conference along with ALP president Wayne Swan.

While most amendments to the platform were negotiated through the factions over the weekend — including a deal for Mr Albanese to repeal union demerger laws — a push by the Electrical Trades Union to stifle trade agreements will likely go to a contentious vote.

Negotiations were under way on Monday tonight on the party’s position on Israel and Palestine, although Labor sources expect a deal to be struck before the issue arises at the conference.

On Monday, the Health Workers Union threw a spanner in the works by threatening to pursue 11th-hour legal action to prevent the conference from going ahead.

Lawyers representing the HWU have written to ALP national secretary Paul Erickson, threatening an injunction against the conference unless the union’s voting numbers are bolstered.

The union claims it has been unjustly treated in its representation for the event.

The Australian understands that the ALP national executive rejected the HWU’s claims, and the union was considering its legal ­options on Monday night.

Labor sources have expressed frustration at the push from Mr Albanese and the Left to “sanitise” the event, after forcing divisive ­debates at previous conferences when there was a Right faction leader, including on same-sex marriage and asylum seekers.

Delegates also said they had not been allowed to access amendments ahead of the event.