Treasurer Open to Amending Green Manufacturing Bill Amid Inflation, Transparency Concerns

Treasurer Jim Chalmers has opened the door to changes to the government’s signature Future Made in Australia Bill amid a surge of criticism.

The Bill, partly modeled on the U.S. Inflation Reduction Act, aims to develop local green energy industries separate from Chinese supply chains.

Yet the proposal has faced criticism that has compelled the government to consider “amendments put to us in good faith.”

“We have listened to the points made about transparency and rigor around investment decisions, and this is precisely why we are enshrining the framework and processes underpinning the future made in Australia into the law which is before us,” said Chalmers.

The legislation is based on three pillars: a national interest framework to identify critical sectors for investment for net-zero, a process to try to lower barriers to private investment, and an assessment of whether communities will benefit.

Opposition Will Not Support Bill

However, on Aug. 22, the bill faced scrutiny from different corners of the House of Representatives.

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Michael Sukkar, Liberal Party MP, said the Coalition would oppose the passage of the Bill because they believe it could result in the misuse of taxpayer money for political gain.

“This is basically a plan for Labor ministers to run around the country pork-barreling,” he stated.

He also questioned the ability of the government to make sound investment decisions and warned that the Bill could lead to more regulation hampering businesses.

“What the Labor government really needs to understand is that the building blocks for manufacturing in this country are affordable and reliable energy, flexible workplaces, great wages, and less regulation.”

Another opposition MP, Alex Hawke, said the bill was unsuitable for an economy already battling inflation.

“In an inflationary crisis like the one we’re in, this additional government spending is going to cause more trouble for the economy in terms of inflation, the hidden tax that we all bear. Inflation, along with the tax burden from increased government spending through our debt and other financing methods, will impact everyone.”

Taking a dig at the government for choosing an attractive name for the Act, saying it would not lead to a “future made in Australia.”

Regional MPs Circumspect, But Concerned

Independent MP Andrew Gee said the Bill was well-intentioned but flawed.

“The bill deserves proper consideration on the merits, not just point-scoring,” he told Parliament.

“Leaving aside the political argy-bargy between the major parties, it has to be acknowledged that there are positive aspects to this bill.”

“Five priority industries or sectors have been developed, including critical minerals processing and renewable hydrogen. Here is my concern: I’m looking at this Bill through the lens of regional Australia and attempting to determine what benefit there could be.”

North Queensland MP Bob Katter of Katter’s Australia Party said the Bill would not put Australia in a position to compete with cheap Chinese manufacturing and exports.

“Patriot patriotism wanes as family budget takes precedence especially when times are tough, just like now,” he said, alluding to the cost of living and inflation pressures.

He further said that it will eventually lead to the shutting down of factories and the loss of jobs.

The independent Gee suggested the Bill could be more beneficial if priority sectors were expanded to include food processing and agriculture.

“We saw during COVID how vulnerable nations were when their supply chains were cut or threatened.”