The national employer association Ai Group has today released its submission to the Federal Government on the establishment of the $15 billion National Reconstruction Fund.
Ai Group Chief Executive, Innes Willox, said: "The National Reconstruction Fund provides the Australian Government with a new and much-needed policy lever to accelerate and shape our industrial transformation.
"To deliver the greatest results from the Government's commitment, the NRF will need to be innovative, networked and adaptable.
"The NRF will directly finance industry through loans, equity and guarantees. It should innovate by specialising in industrial transformation projects which are currently under-serviced by existing private investment markets.
"Modern industrial capabilities are networked, with close links connecting businesses within industrial ecosystems. The NRF offers an opportunity to focus policy efforts on building integrated ecosystems of innovation.
"For the NRF to be effective, the activities and ecosystems it seeks to develop will require an increased availability of a range of workforce skills both traditional and emerging.
"Both for the success of the development opportunities and to minimise disruption to existing industries for which these workforce skills are required, the NRF should liaise closely with Jobs and Skills Australia and with state and territory training and education authorities to secure an adequate domestic supply of the necessary skills.
"Similarly, where there is not adequate domestic supply of suitable skills, the NRF should provide input to the Department of Home Affairs to ensure the required skills in demand are included in immigration priority skills lists.
"It is critical that no special regulatory requirements should be placed on the businesses engaged with the NRF that would not apply if the NRF was not involved in their financing. For example, there should not be particular conditions imposed on the governance of recipients of NRF financing; the workplace relations requirements of these businesses should not be required to satisfy additional conditions; and there should not be additional requirements on the share of local content in the production undertaken by these businesses.
"Such requirements would be discriminatory and by adding extra costs and restrictions would raise the risks of businesses falling short of their ambitions and of course increase the financial risk faced by the NRF.
"Building adaptable industries – those which can pivot to meet multiple economic needs – is the best route to build Australia's sovereign capabilities. The NRF should support adaptable industries that help address supply chain disruptions.
"As we move into the post-COVID era, Australia is facing rapid technological shifts. Digitalisation, automation, artificial intelligence and the clean energy revolution will remake global industry.
"Australia is well-positioned to benefit if we can seize emerging opportunities in areas where we have demonstrated or potential competitive advantages,” Mr Willox said.
Media enquiries
Tony Melville – 0419 190 347
