The Albanese government’s industry and science minister Ed Husic swung by the Tech Council of Australia’s summit in Melbourne today to let them know things are going to happen.
Traditionally, politicians rock up to events with big, bold announcements. Husic announced that he’s going to be making announcements.
It’s nearly a year since the minister announced the $15 billion National Reconstruction Fund was “open for business” and can “get cracking”.
Scientists think dinosaur eggs took between three and six months to hatch, so in cracking terms, a year on, the government’s signature investment project is taking a little longer to crack on and invest. But it’s going to.
“The NRF Corporation has been methodical and rigorous in the way it has gone about assessing the hundreds of proposals it received,” Husic said, adding that the kids have now hit up dad for money to go out and enjoy themselves.
“I can tell you, we are now on the cusp of announcing the first investments. Recently, the NRF Corporation wrote to me to request a $300 million drawdown from the government. This is the most concrete signal that the NRF is ready to ink a series of deals.”
How exciting to still get letters. Surely a text saying “PLZ send money” from the NRF would suffice, then say it’s commercial-in-confidence if you get any FOI requests.
The minister went on to say “we will have more to say in coming days about these initial investments.”
It’s been a little quiet on the tech front from the federal government since they assumed power in May 2022.
Sure the federal government was busy ending the Boosting Female Founders (BFF) grant program, with $17 million unspent, as well as getting rid of the the Women in STEM Ambassador program – the only action so far taken in the wake of the Diversity in STEM review, chaired by Cicada Innovations CEO Sally-Ann Williams – and handed to the government in February this year.
But Psi Quantum will get $466.4 million in equity and loans from Export Finance Australia on the National Interest Account, even if the legal costs of the deal now being investigated by the audit office while the Commonwealth will spend more than $2.5 million annually to manage the contract. Meanwhile, there’s now a cloud over that deal with the new Queensland premier, David Crisafulli, running his eye over the state’s $470 million half of the funding.
Then there was $55 million in grant funding for medtech startups last month as part of the Cooperative Research Centres Program.
And who can forget the 2022 federal budget for tech and startups, the glory of 2023, plus 2024’s bonanza including through Husic’s eyes.
Suddenly, we’re just six months from an election, and nothing sharpens an MP’s mind quite like the future of their Qantas Chairman’s Lounge invitation.
So brace for news that the government is getting on with the job and investing in Australia’s future. A lot.
The National Reconstruction Fund’s board includes Airtree cofounder Daniel Petre, and is chaired by climate investor Martijn Wilder, founder and CEO of Pollination.
It has seven priority investment areas: renewables and low emissions technologies; medical science; transport; value-add in the agriculture, forestry and fisheries sectors; value-add in resources; defence capability; and enabling capabilities.
The first investments are reportedly in deep tech. The NRF co-invests with others, including private equity and super funds.
The fund is modelled on the Clean Energy Finance Corporation, which Wilder helped develop to invest in a range of climate tech startups, and its board makes the investment decisions. It’s independent of government, although the board is appointed by them.
NRF CEO Ivan Power recently resigned to focus on his health following an accident.
Revealing the announcements to come, Husic said “this will be a watershed moment, lifting the trajectory of our tech and manufacturing capabilities”.
The drought is about to break.
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