Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry, Tourism and Resources) Share this | Hansard source

I thank the member for Prospect for his question. There are two key areas that he has raised: one is increased funding for Invest Australia. In the 2006-07 budget, this government has provided increased funding of around $73 million for Invest Australia over four years to boost international efforts to further foreign investment in Australian industry. Australia has always been one of those countries that have required an injection of capital to promote, support and develop industries. Not since the days that we rode on the back of the sheep have we had enough capital to run this country. The fact that we attract investment into this country says a lot about the economic position that Australia is in. Over the last 10 years, we have been able to ride through the recessions of other countries—for example, through the Asian meltdown—and, through that, we have developed an ability to invest in Australian industries ourselves.

The other issue that the member for Prospect raised was venture capital initiatives. The government announced three key reforms in the 2006-07 budget in response to the venture capital review undertaken by an expert group chaired by Mr Brian Watson and including Mr David Miles and Mr Gary Potts. The export group presented its report to the government in December. There are issues in relation to venture capital. The government has committed $200 million worth of funding for a further round of the Investment Innovation Fund Program. The new round will appoint up to two new managers on a competitive basis each year for five consecutive years, with $40 million per annum in funding available for successful managers. Government funding will be matched dollar for dollar by the private sector.

We are seeking to bring about a partnership between government support and finance and private industry. The idea of government being the sole investor in innovation is deplorable. The fact that this government has been able to sit down with industry and attract industry to the table means that we can more forward.

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