Coalition opposes sovereign manufacturing Bill in the Senate saying it does nothing to address the key challenges

MedTech News: The Coalition has announced that it is opposing the National Reconstruction Fund Corporation Bill 2023 in the Senate – a legislation for a $15 billion initiative over 10 years to strengthen the country’s sovereign manufacturing capabilities.

The National Reconstruction Fund aims to make strategic investments in a number of priority areas identified by the CSIRO in their paper COVID19: recovery and resilience, including $1.5 billion for medical manufacturing, $1 billion for critical technologies, and $1 billion for advanced manufacturing.

According to the Coalition, this Bill does nothing to address the rising energy costs, a lack of supply of particular materials and inputs into the manufacturing process, labour market shortages, increased costs
related to labour, disrupted supply chains that arise out of some of these challenges, and increased fuel costs.

Senator the Hon Michaelia Cash, Deputy Leader of the Opposition in the Senate, said on Friday “This Bill that we have before us in the Senate does nothing to address inflationary pressures or power prices. In fact, the Bill will actually make these economic challenges even worse. The International Monetary Fund has explicitly warned the Albanese government to avoid off-budget spending vehicles such as that which will be established by this legislation.”

Greens leader Adam Bandt confirmed the party will back the Bill after Labor accepted changes that would ensure the Fund could not invest public money in coal and gas projects or native forest logging.

AusBiotech recently welcomed the passing of the Bill through the House of Representatives “as the Fund would represents a valuable investment in the life sciences sector, enabling new technologies, innovations and capabilities to develop and progress, with significant benefits to Australians and the economy.”

While Medical Technology Association of Australia (MTAA) pointed to Australia’s strong track record in innovative medical devices, most notably Cochlear and ResMed, the organisation warned that “Australia needs to be careful not to try to do everything, when it is 2% of the world market. Some specialisation will make senses. The National Reconstruction Fund should be aware of growing opportunities to manufacture MedTech that must be supplied regionally due to custom requirements where the competition pool for investment is therefore smaller.”

Senator Paul Scarr, Deputy Opposition Whip in the Senate, told the Senate “The core business of government should be about creating the investment environment for manufacturing and every other industry. It is not to take shareholdings in different businesses and become an owner of those private enterprises. I don’t think anyone here or any of the 15 million Australian taxpayers signed up to contribute $1,000 each for the Labor Party’s private equity fund. If the private sector will not invest its equity in a venture and commercial lenders will not advance sufficient debt funds, why should the government risk taxpayers’ money of $15 billion?

“How else could that $15 billion be spent? Maybe it could be spent in improving health services or in adding drugs to the PBS for people who need those life-saving drugs. Maybe it could be spent in doing the things that should be the core business of government.”

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