Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

This is a question for the Minister for Defence Industry, representing the Minister for Industry and Science. In 2023 the government established the National Reconstruction Fund, with an announced $15 billion to crowd in investment in emerging industries and technologies. Two years later, despite the urgent need to unlock private investment in the transition to net zero, it appears that less than five per cent of this has actually been invested. Why isn't it moving faster?

Pat Conroy (Shortland, Australian Labor Party, Minister for Defence Industry) Share this | Link to this | Hansard source

I thank the member for her question and her strong commitment to seizing the opportunities from the transition that are available to us. The National Reconstruction Fund is one part of our plan for a future made in Australia especially focused on seizing the opportunities from that transition. I'm delighted to inform the House that, since it was established less than two years ago, it has made nine investments, worth over $430 million. It's investing in innovative technologies and local manufacturing which will help the transition. For example, the NRF has invested $200 million in Arafura Rare Earths Ltd. This will deliver the rare earth minerals essential for renewables and the energy grid of the future.

These investments will ramp up over time, but, as I said, the fund was established less than two years ago. This is only one part of this government's commitment to seizing the opportunities of the global race to net zero, and I talked about a few of those yesterday. They include production tax credits for critical minerals and renewable hydrogen; $2 billion to transition the Australian aluminium smelters to renewable energy; and $1 billion in the Green Iron Investment Fund. This Green Iron Investment Fund is critical for decarbonising Australia but also for decarbonising the world. It was also a feature of the Prime Minister's trip to China. This will complement what the National Reconstruction Fund is doing and the investments it is making.

Other complements of the National Reconstruction Fund include the Clean Energy Finance Corporation's investments. Last year the Clean Energy Finance Corporation committed $4.7 billion to that decarbonisation agenda. The member, in her question, talked about leveraging private-sector investment in this transition, and I'm delighted to inform the member that the CEFC has been leveraging $4.14 of private-sector capital for every dollar of public-sector investment. So that $4 billion unlocked $25.7 billion of total investment and supported over 4,000 jobs.

ARENA has also been really successful at leveraging private-sector capital.

Milton Dick (Speaker) Share this | Link to this | Hansard source

I'll take a point of order from the member for Curtin.

Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

On relevance, the question was about the speed of the rollout of the NRF, not other things that they're doing outside the NRF.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The minister shall return to the question. I know he's being directly relevant about the project, but he's got another 40 seconds to answer the question. I'll be listening carefully to make sure he is being directly relevant.

Pat Conroy (Shortland, Australian Labor Party, Minister for Defence Industry) Share this | Link to this | Hansard source

As I said at the outset in answering the member's question, in less than two years the NRF has made over $400 million worth of investments, including a very significant $200 million investment in Arafura, and we expect it to ramp up over time. The minister has given directions to the fund's administrators. Importantly, as I said, this is one part of this government's commitment to seizing the opportunities from a transition to net zero—grabbing the job opportunities that are there for governments to take action on climate change and are happy to invest in the private sector. I thank the member for her question.