Paul Fletcher (Bradfield, Liberal Party, Shadow Minister for Government Services and the Digital Economy) Share this | Link to this | Hansard source

I move:

That:

(1) a select committee, to be known as the Select Committee on PsiQuantum Funding, be appointed to inquire into and report on the process undertaken by the Australian Government to provide $470 million to American-based company PsiQuantum Pty Ltd;

(2) the committee is to inquire into the following matters:

(a) the process by which the Australian Government selected PsiQuantum Pty Ltd for investment;

(b) the expression of interest process;

(c) the financial implications of the investment;

(d) the commercial and scientific terms of the investment;

(e) whether actual or potential conflicts of interest have been appropriately managed;

(f) the nature and extent of interactions between PsiQuantum or its external advisers and the Minister for Industry and Science, the Minister's personal staff and officials of the Australian Public Service; and

(g) any other matters necessary or incidental to the committee forming a view as to whether the investment in PsiQuantum is a proper expenditure of public money;

(3) the Minister for Industry and Science be called by the committee to appear as a witness to assist the committee in its deliberations;

(4) the committee consist of seven members, three Members to be nominated by the Chief Government Whip and four Members to be nominated by the Chief Opposition Whip of whom at least two must be a crossbench Member;

(5) every nomination of a member be notified in writing to the Speaker of the House of Representatives;

(6) the committee may proceed to the dispatch of business notwithstanding that not all members have been duly nominated and appointed and notwithstanding any vacancy;

(7) the members of the committee hold office as a select committee until presentation of the committee's final report or until the House of Representatives is dissolved or expires by effluxion of time, whichever is the earlier;

(8) the committee present its final report no later than 1 March 2025;

(9) the committee elect an Opposition member as its chair;

(10) the committee elect a Government member as its deputy chair to act as chair of the committee at any time when the chair is not present at a meeting of the committee;

(11) at any time when the chair and deputy chair are not present at a meeting of the committee, the members present shall elect another member to act as chair at that meeting;

(12) in the event of an equally divided vote, the chair, or the deputy chair when acting as chair, have a casting vote;

(13) three members of the committee constitute a quorum of the committee;

(14) the committee have power to appoint subcommittees, consisting of three or more of its members, and to refer to any subcommittee any matter which the committee is empowered to examine;

(15) the committee appoint the chair of each subcommittee who shall have a casting vote only;

(16) two members of a subcommittee constitute the quorum of that subcommittee;

(17) members of the committee who are not members of a subcommittee may participate in the proceedings of that subcommittee but shall not vote, move any motion or be counted for the purpose of a quorum;

(18) the committee or any subcommittee has power to:

(a) call for witnesses to attend and for documents to be produced;

(b) conduct proceedings at any place it sees fit;

(c) sit in public or in private;

(d) report from time to time; and

(e) adjourn from time to time and to sit during any adjournment of the House of Representatives; and

(19) the provisions of this resolution, so far as they are inconsistent with the standing orders, have effect notwithstanding anything contained in the standing orders.

The Albanese Labor government's decision to invest almost $1 billion of taxpayers' money into the American company PsiQuantum raises several serious questions which warrant scrutiny. Since the announcement was first made by the Prime Minister and the Minister for Industry and Science on 30 April, the opposition has sought to hold up to scrutiny this extraordinary bet which has been made with public money, and the government has trenchantly resisted that scrutiny at every stage. That is why today I'm moving to establish a parliamentary inquiry so that we can find out what happened and who is responsible.

The Albanese government has chosen to bet a very large amount of public money on one particular company pursuing one particular technology path within the broad field of quantum—a field in which people who have worked for 20 or 30 years cannot say with certainty which of the many paths being explored is likely to achieve a successful outcome. On any view, it will be at least several years, very possibly longer, before the technology being developed by PsiQuantum is proven to work, if it can be proven to do so at all.

We know that a very poor process was followed to get to this decision. The Albanese government agreed to assess an unsolicited proposal from PsiQuantum as early as November 2022, two months before external probity advisers were engaged. The Department of Industry, Science and Resources entered into a non-binding agreement with PsiQuantum in June 2023, yet the government points to an expression-of-interest process which commenced only in August 2023. It was an expression-of-interest process in which companies were invited to participate by one email only. There were no follow-up telephone calls; there was no second email. Those who were invited to participate were told they could not speak with Australian government officials. This was after PsiQuantum had been speaking for more than eight months with Australian government officials, up to and including the minister, who had visited their premises in California and had met with them directly. We now know the terms of the expression of interest. It essentially asked respondents to match the promise made by PsiQuantum of building a fault-tolerant, error corrected quantum computer by 2030. Many in the sector are extremely sceptical that this can be done. But scepticism is not welcome in Minister Husic's regime.

We know that Minister Husic has a particular interest in venture capital firm Blackbird. In October 2022, he appointed Clare Birch of Blackbird to the National Quantum Advisory Committee. In December 2022, he appointed Kate Glazebrook of Blackbird to the Industry Innovation and Science Australia Board. In May 2023, he launched the National Quantum Strategy with Nomad Atomics, a Blackbird funded company. On 30 April this year, he announced almost $1 billion in funding for PsiQuantum, a company in which Blackbird is an investor. Blackbird and the many other investors in this company of course greatly benefited from that decision and that announcement. It is on the record that there is a close personal friendship between the minister's senior adviser Ellen Broad and Blackbird executive Kate Glazebrook.

I've written to the Auditor-General requesting that the Australian National Audit Office undertake an investigation into the Australian government's investment in PsiQuantum, and the Auditor-General has responded that a potential investigation is being considered. There are many aspects of what happened here which are very concerning, and there needs to be a parliamentary inquiry to get to the bottom of this decision, the reasons for it and many other aspects of what happened. We know a deputy secretary who advised against this commitment of funding subsequently left the department after being on gardening leave for a considerable period of time. We know that Export Finance Australia was directed to commence work on providing the funding even before the expression-of-interest process had concluded.

The sad reality is that, as a consequence of this decision, Australian taxpayers are now exposed to almost $1 billion of their money being put at risk in what is a remarkably speculative venture. The minister has publicly stated that he welcomes scrutiny of this investment, and now is the time for him to back those words with action. If he's serious he will arrange for this resolution to brought on for a vote and for Labor to vote in support of it.

Karen Andrews (McPherson, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

I'm glad to have the opportunity to talk about this motion brought forward by the member for Bradfield. I feel that this is a similar theme and that we've been here before, talking about science and the future. On a previous occasion I spoke about the nature of science. Science isn't about guesswork or clinging to the past; it's about methodology. It's about facts and evidence and about taking actions based on that evidence. But here we are again, and what's the opposition up to this time? I feel like they're stuck in the seventies, the eighties or the nineties, refusing to embrace the future. Let me tell them something. The future is coming, and it's coming fast—and the future is quantum computing.

In my electorate of Swan, we indeed are leading the change. Swan is the home to the most powerful research supercomputer in the Southern Hemisphere. It's called the Pawsey supercomputer. It is a world-class facility that is doing incredible work. Back in September, I hosted a meeting with young people from Swan at the Pawsey centre. We held a changemakers conference because we wanted to talk about the future and what we could do to make our country a better place. We hosted it in that space because it was interesting to see the amazing contributions that quantum computing is making. It's making them in leaps and bounds and it's doing this by looking at the future and what we need for Australia. Let me tell you, Deputy Speaker, that they were enthralled. They saw this supercomputer and learnt about the possibilities that it creates. That's what we're doing: we're preparing young people for the opportunities ahead.

This isn't just for young people; it's honestly for the whole country. Quantum computing is a game changer. It has the massive potential to transform industries, solve complex problems and deliver benefits to all Australians. That's why we're not just talking about it; we're actually doing it. We're pushing forward. Meanwhile, what's the opposition doing? Tearing it down, ignoring the evidence and sticking to outdated ideas. Unlike them, Labor is embracing the evidence. This goes back to advice that the government has been given. Back in 2023 the nation's Chief Scientist, Catherine Foley, said:

This is a high risk, high reward venture, but one that would position Australia as a truly deep tech country …

She also said we have a chance to build the industry here. She said:

I can assure you I have not drunk the Kool-Aid. The assessment is based on evidence gathered.

This is based on evidence, not on Kool-Aid.

That's how we as a government work. The government is acting professionally and strategically to move quantum computing forward. We've done the homework. We're investing $470 million in equity and loans to build fault-tolerant quantum computing with PsiQuantum. This isn't some off-the-cuff decision. This is part of a methodical process. The process has involved looking at economic, legal, commercial, technical, probity and also national security advice. It was a whole-of-government effort. That's how you get things done. But what do we get from the opposition? Blockers, not builders. They're constantly saying no. They're the 'no-alition'. They said no to Intel when they wanted to set it up here. Now they're saying no to quantum computing. It's the same tired playbook—to say no to the future and hold Australia back.

Fortunately, the Albanese government isn't waiting around for their approval. We're taking action. We're preparing Australia for challenges and opportunities of tomorrow. Quantum computing is a part of that vision. It's about innovation. It's about jobs. It's about ensuring Australia is a global leader in this space. This motion is another example of the opposition's refusal to engage with real work. It's nothing more than what we would expect—them saying no to progress. Well, I say no to their motion, and I say yes to the future—yes to science, yes to evidence, yes to the amazing potential of quantum computing and yes to a government that's getting the work done.

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

Let's be very clear: the coalition isn't opposed to quantum as a technology. I've advocated for testbed strategies for the whole Australian quantum industry in this House many times. We're opposed to this government picking one winner in quantum, a Silicon Valley based American company, and having the audacity to put that under the Future Made in Australia program. The member for Swan was happy to quote Chief Scientist Cathy Foley. There was a quote about PsiQuantum that the member for Swan and those opposite won't quote, so I'll quote it. This is from the Chief Scientist:

I was also put off by the 'salesman' push and lack of detail in the information provided and how it was presented.

That's how the Chief Scientist described the PsiQuantum pitch at the start of the process, before Minister Husic—as he does—brought his pressure to bear on her and she gave some qualifiers. But she did also talk about 'high risk', and that is what we have argued from the start. It is a high-risk strategy to put everything into one company in a contested field, particularly an American company.

We also have significant concerns about the process. I've spoken on multiple occasions about the email from PsiQuantum as a company to investors prior to the EOI process. In that email, they were spruiking their advanced talks with the Australian government and the significant financial investment that they were going to get from the Australian government. They were spruiking that to investors before the EOI process had started. That leads to significant questions that PsiQuantum have to answer. If PsiQuantum are happy to take over a billion dollars of Australian taxpayer money here in Canberra and in Brisbane in Queensland, they have to answer: were they misleading those potential investors? Were they misleading them by saying they had an advanced negotiation, or did they have that agreement with the Australian government and they were telling those investors in good faith before the EOI process started? They need to enter that question. That is why we need a committee hearing—so we can ask PsiQuantum, who are prepared to take $1 billion of taxpayer money, those questions. The minister should be prepared to answer those questions. Why was this company spruiking it to investors before the EOI process had started? The minister said he was happy for scrutiny to be brought. He should accept this committee hearing. But he won't. He'll hide from this. The taxpayers deserve to know. They deserve to know about this sham process. The quantum industry is outraged.

I was first alerted to this EOI process last year. I spoke in this chamber in November last year about the process and the concern from the industry that the EOI process was set up to pick a winner, to pick PsiQuantum. Lo and behold, in April this year, PsiQuantum was the winner of this tender process. This is significant for the Australian quantum industry, because the Australian government is backing a Silicon Valley based US company over Australian industry. It's significant for the quantum industry but it's significant for all Australians because this is under the Future Made in Australia banner, the supposed flagship of the Albanese Labor government. If they are not prepared to answer questions about this investment under that banner, it calls into question every investment made by the Albanese Labor government under Future Made in Australia.

The reality is that these questions have not been answered by this minister. If he's not prepared to answer these questions around these conflicts of interest and about this email that many in the industry have seen spruiking support, showing that the EOI process was set up to divert taxpayer money, then the Prime Minister should show some courage and he should ask the minister to resign. There is over $30 billion of taxpayer money tied up in the Future Made in Australia program. This $1 billion is part of that. The Australian people need to have faith that taxpayer dollars are being spent in the best interests of the quantum industry here in Australia and in the best interests of taxpayers, not in the best interests of the minister's friends in Silicon Valley.

Shayne Neumann (Blair, Australian Labor Party) Share this | Link to this | Hansard source

By this motion the coalition are clearly demonstrating they don't think Queenslanders deserve a world-leading project in Queensland that will strengthen the Queensland economy, improve Queensland jobs and increase the attractiveness for private investment in Queensland. The coalition don't believe in a future made in Australia; they certainly don't believe in a future made in Queensland.

Under our plans for A Future Made in Australia, we're going to see our country be able to stand on its own two feet, revitalising our manufacturing and technological muscle that withered under the previous coalition government. That is why, together with the former Queensland Labor government, we committed to invest $470 million in equity and loans in PsiQuantum. This is a world-leading global firm founded by two Australians. Those opposite constantly talk about Silicon Valley. This was founded by two Australians, Jeremy O'Brien and Terry Rudolph. One of them was born and raised in Queensland and both were educated in Queensland. They're two of the world-leading experts in the area of quantum computing.

The sad thing is that every time the member for Bradfield and those opposite call this a US company they're telling Jeremy and Terry, who are two of our smartest Australians, that they don't want them here. They grew up here. They're Australians. The coalition doesn't believe in a future made in Australia and it certainly doesn't believe in a future made in Queensland. These blokes are Australians. Like so many, they had to leave our shores because they didn't get their ideas backed enough. Now they want to bring those ideas back and build the world's first commercial-scale quantum computer in Brisbane in the state of Queensland, my home state. This will mean that PsiQuantum, one of the highest-value quantum computing companies in the world, will establish its Asia-Pacific headquarters and a quantum manufacturing precinct in Queensland, creating 400 new high-paid jobs not just for scientists and experts in quantum computing but for lab technicians, welders, electricians and systems engineers. That's going to be great for Queensland and great for the western corridor outside of Ipswich and Springfield.

They've hit the ground running already, announcing research and education partnerships with five leading Queensland universities. What has the coalition got against Queensland? They're opening a new research and development lab at the Griffith University's Nathan campus in Brisbane and building an Australian team. They're aiming to produce one of the most powerful computers on the planet that can crack problems that conventional computing can't achieve, transforming drug development, aerospace and advanced manufacturing. It means jobs for Australians and jobs for Queensland. It means opportunities for brilliant kids studying in Queensland and around Australia to stay here in Australia rather than—as they, unfortunately, had to do—go with the brain drain overseas. So it's important for Queensland.

Springfield City Group in my electorate is keen to establish a quantum tech education centre in Springfield to train the future workers we're going to need for quantum technology industry and related areas like AI, robotics and machine learning. This is an example of how the PsiQuantum project is unambiguously good for Queensland. It's not just about Brisbane; it's about the regions as well, as I alluded to. It means hundreds of jobs, boosting R&D capabilities and bringing billions of dollars of direct investment in Australia by PsiQuantum—an investment that would have gone overseas. It means billions of dollars in economic opportunity for Queensland and a chance for Queenslanders right across our state to have careers in Queensland that will change the world. It's so disappointing to hear that the new LNP state government is reviewing half of the agreement to fund PsiQuantum. That said, we're working constructively with them on a range of issues that will decide, hopefully, a bipartisan approach. I hope they don't listen to their colleagues and comrades here in Canberra because, if they do, they'll be anti science, anti the future, anti development, anti jobs, and anti advanced manufacturing. They're anti-Australian the way they're going on today! You don't hear a word about the fact that the proponents are two Australians. They're constantly downplaying this.

We have taken a whole-of-government approach. There has been national security and transparency and probity checks in relation to it. All those opposite can say is no to everything. They vote against bills in the chamber that will benefit the country, and today they want to put forward a motion that is anti jobs, anti Queensland and anti economic development. They are turning their back on the future. They are always happy about the past. Go back to Menzies!

James Stevens (Sturt, Liberal Party, Shadow Assistant Minister for Government Waste Reduction) Share this | Link to this | Hansard source

I appreciate the lecture from those opposite who are opposing a probity motion and a governance and integrity motion merely to look at something. If there's nothing to be concerned about, the government should have no fear whatsoever in seeing the motion progress, but we seem to have touched a nerve. They seem to be very concerned about any avenue that would see a bit of sunlight shone upon what seems to be a very, very murky deal that the government has done over this massive grant to PsiQuantum of Commonwealth and state funds.

I congratulate Premier Crisafulli and express some relief that we now have him at the helm in Queensland. The Queensland government shares the same concerns that the federal opposition do about just what is going on with this billion-dollar allocation of state and federal funds to this American company to build a quantum computer to a specification that has never before been successfully constructed. In the process, we seek to find out why it is that so much murkiness and such a shroud of secrecy have been cast over the decision-making process. As I say, it really does surprise me that the government has a problem with what this motion will do, which is to establish an inquiry into all these things. If you've done nothing wrong, you've got nothing to fear and you should have nothing to hide. If successful, this motion would have a process that, if you believe the government, would merely confirm that everything they've done regarding this half-a-billion commitment of Commonwealth funds to an American company called PsiQuantum is completely above board.

The member for Bradfield, who has moved this motion and brought it to this chamber, has made very important points in the past in scrutinising this. We know there has been correspondence with the Auditor-General. Other integrity bodies may or may not want to look at this murky deal and, in particular, some of the personalities involved in getting special access to the ministers that made these decisions and the past connection those lobbyists might have had with said ministers. All these things would be good to flesh out in the inquiry we are proposing through this motion.

There was a time in the last parliament—which I was a part of—when we got very consistent lectures from the now government about integrity and looking at what the executive of government was doing. In fact, if the shoe were on the other foot, I could just hear, and my ears could ring, from the sorts of bellowing that would be coming from the now Labor government about the need to support this motion. So they have the opportunity to put their money where their mouth is—half a billion dollars of money where their mouth is. They can honour their piousness from previous parliaments on topics like this and, in particular, explain why, if they're not supporting this, what holding an inquiry into allocating half a billion dollars of Commonwealth funding through very murky and questionable processes, with no merit based opportunity for others to compete for the sorts of funds being allocated, be something to fear? Why would there be a problem with the parliament exercising its responsibility, which is the oversight of the executive and the expenditure of Commonwealth funds, and why would there be anything to fear in supporting the establishment of this inquiry that the member for Bradfield brings before us today?

I want to get to the bottom of the questions we would be probing through this committee. I want to tell my constituents why this half-a-billion-dollar deal was done the way it was done, why it wasn't merit based and why certain lobbyists were able to secure meetings with ministers and spruik the investment of this scale. It's very interesting that the new Queensland government has the same concerns and is questioning whether it will invest in what was announced by the previous Labor government. Supporting this inquiry, if there's nothing to fear, should be something that this government does.

David Smith (Bean, Australian Labor Party) Share this | Link to this | Hansard source

I'm grateful for the opportunity to contribute to this debate and join with my government colleagues to oppose this motion. As the member for Bean in the ACT, in the nation's capital, home to many of Australia's leading high-tech users and developers, I am acutely aware of the need for Australia to build its own capacity and to reduce our nation's dependency on overseas—and when it comes to quantum, it is a race. With all the tragedy and suffering, the COVID era provided us with a useful wake-up call that Australia must do better in building our capacities in the space of the new technologies shaping our world today and into the future. Whilst this motion is purely here as political play by the opposition and should be seen as such, I am pleased this debate provides an opportunity to talk about some of the positive thinking and action this government is taking in this space.

Under our plans for a future made in Australia, the Albanese government is revitalising our manufacturing and technological muscle that just withered under a decade of coalition governments. But to grow in the years ahead, modern economies need strong manufacturing and technological capability. That's why, with the Queensland government, we committed to investing almost half a billion dollars in equity and loans to PsiQuantum, a globally leading firm founded—again, to remind the opposition—by Australians Jeremy O'Brien and Terry Rudolph, two of the world's leading quantum physicists. This will mean that PsiQuantum, one of the highest valued quantum computing companies in the world, will build the world's first commercial-scale quantum computer and establish its Asia-Pacific headquarters here in Australia. This is in keeping with Australia's first ever national quantum strategy, announced in May 2023 by this government. It means hundreds of jobs, extra grunt to our R&D capabilities and billions of dollars of direct investment in Australia by PsiQuantum—investment that would otherwise have gone overseas. It means research and education scholarships, industry partnerships, supply chain opportunities and a dedicated climate research centre.

Since the Australian government announced this investment, the US government has followed suit, supporting PsiQuantum's second facility in Chicago. PsiQuantum has already hit the ground running in Australia, announcing research and education partnerships with five Queensland universities, opening an R&D lab and building for an Australian team. We released the Chief Scientist's advice on this important investment, which emphasised its impact on our local industries. It said:

Having this big company in Australia will attract the supply chains here and provide an uplift in adjacent industries such as photonics … and semiconductors which are as critical to human life now as water, food, housing and energy.

The Chief Scientist described it as being our Taiwan moment. Just as Taiwan moved into semiconductors in the 1970s, here was our chance to be a global hub for the quantum industry. But the coalition wants to take Australia backwards, whilst we want to invest in Australia's future.

We agree that the process is important, and it's important to put on the record here that this was a rigorous, extensive, whole-of-government process with economic, legal, commercial, technical, probity and national security advice. We drew on expertise from across government and outside it, including from our Chief Scientist, who scrutinised PsiQuantum over many months, asking the hard questions. This was her ultimate conclusion:

I support this as an opportunity.

This is one opportunity that will mean Australia has a real quantum industry … that will be world leading.

Her assessment has been backed by the technical advisory group, including scientists from CSIRO and the Defence Science and Technology Group, concluding that PsiQuantum demonstrated extensive experience and considerable capability and the necessary capacity to pursue its technical roadmap.

The government also ran an expression-of-interest process in accordance with public sector advice to assure ourselves that we weren't overlooking a competitor who might be as close to PsiQuantum in delivering a fault-tolerant quantum computer. We've released that EOI assessment. It's not murky; it's incredibly transparent. That assessment outlines the rigour taken by the assessment panel and technical advisory group, with comprehensive probity advice. The panel found no applications were competitive or highly competitive. In the Chief Scientist's words, the EOI found PsiQuantum were 'a country mile' ahead.

But we shouldn't be surprised by a motion that is effectively an anti-jobs fishing expedition from the team that gave us the COVID app and robodebt.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.