ALP fund to boost industry

AN ALP plan to invest in local production will be partially funded by loans from super funds.

The National Reconstruction Fund was announced at Cairns Airport by Senator Nita Green and shadow spokesman for financial services and superannuation Stephen Jones.

The pair toured Hawker Pacific Cairns, a company in the aviation sector which hopes to benefit from the fund.

The scheme has a strong regional focus and is intended to “secure jobs for Australian workers, drive regional economic development, boost our sovereign capability and diversify the nation’s economy”.

The fund will be legislated and be governed by an independent board using the same model the ALP used for the Clean Energy Finance Corporation.

“It will provide $15bn of investment through a combination of loans, equity, coinvestment and guarantees,” Opposition Leader Anthony Albanese said.

“The fund will be administered on the basis that it will achieve a return to cover borrowing costs, with an expected positive underlying cash impact.

“The COVID pandemic has exposed serious deficiencies in Australia’s economy, in particular our ability to manufacture products and be globally competitive when it comes to innovation and technology.”

Senator Green said the fund would help drive the diversification of the Cairns economy.

“We need to bring local manufacturing back home,” Senator Green said.

“In Cairns our shipbuilding and aviation sectors have weathered the COVID storm and delivered good, secure jobs.”