28th Mar 2023, 4:52 PM – Senate National Reconstruction Fund Corporation Bill 2023 - Second Reading - Agree with bill's main idea

The majority voted in favour of agreeing with the main idea of the bill. In parliamentary jargon, they voted to read the bill for a second time. This means that they can now consider it in more detail.

Motion text

Note that the wording of the motion voted on it this division was a little different from normal due to an amendment from Senator Whish-Wilson and another from Senator David Pocock, so the motion text was:

That this bill be now read a second time, but the Senate:

(a) is of the opinion that:

(i) building a circular economy is a central element of delivering net-zero emissions,

(ii) a circular economy can bolster Australia's capabilities and reduce supply chain vulnerabilities, and

(iii) the benefits of a circular economy could add $210 billion in GDP by 2047-48, creating an additional 17,000 full-time equivalent jobs; and

(b) calls on the Government to:

(i) invest in projects that facilitate the establishment of a circular economy for renewable energy and other products,

(ii) incorporate circular economy principles into the Investment Mandate for the National Reconstruction Fund; and

(iii) seek that the National Reconstruction Fund Board give regard to outcomes and advice from the Circular Economy Taskforce".

... [and] the Senate:

(a) notes that:

(i) the success of the National Reconstruction Fund Corporation's work will depend in large part on the existence of a sustainable pipeline of eligible projects at a stage suitable for funding through the Corporation, and

(ii) the work of the Corporation will reach across multiple portfolio areas and have a long-term, transformative impact on Australia's economy and industrial base; and

(b) calls on the Government to:

(i) commit to exploring additional policy mechanisms to provide Australian startups access to finance as they navigate the path to commercialisation, and

(ii) establish an office for the Corporation in the Australian Capital Territory to foster collaborative engagement with other key government bodies and private corporations and access to a skilled local workforce".

What is the bill's main idea?

According to the bills digest, which is an explanatory document prepared by the parliamentary library:

Background

• The Australian Labor Party (ALP) committed to the $15 billion National Reconstruction Fund on 15 November 2021 as ‘the first step in Labor’s plan to rebuild Australia’s industrial base’.
• Arguments for the proposal have focused on Australia’s low manufacturing self-sufficiency and ‘economic complexity’. Opponents have focused on the risks created by market interventions.
• Outside Parliament, a broad range of interest groups have supported the proposal.

Purpose of the Bill

• The main purpose of the National Reconstruction Fund Corporation Bill 2022 (the Bill) is to establish the National Reconstruction Fund Corporation (NRFC) in order to ‘facilitate increased flows of finance into priority areas of the Australian economy’.