The Albanese government will redirect $500 million in unspent manufacturing grants promised by its predecessors to a $15 billion National Reconstruction Fund that seeks to support transformational projects in sectors such as resources, medical science and renewable energy.
Despite the clawback, the government has still found $113.6 million over four years for grants to companies such as poultry producer Ingham’s, fruit and vegetable grower Costa Group and zinc smelter operator Nyrstar.Most of the saving comes from redirecting funds from the Modern Manufacturing Initiative – a controversial grant scheme that the now-Industry Minister Ed Husic had accused the Morrison government of brazenly politicising by announcing winners just before and during the election.
“We want to unlock the potential of projects in priority areas to capitalise on great Australian know-how,” he said.The government said it would consult “industry, union and stakeholders” to ensure the scheme was appropriately targeted. Other spending in Mr Husic’s portfolio included $50 million to upgrade the Nyrstar Hobart zinc smelter, $11.1 million for Ingham’s Sorell poultry facility and $2.1 million for Costa’s berry distribution centre in East Devonport. Paper producer Norske Skog Boyer will get $2.1 million to support a feasibility study to replace a coal-fired boiler at its Tasmanian mill.