A Future Made in Australia is about maximising the opportunities of our goal of net zero for workers and businesses, and, very importantly, securing Australia's position in what is a changing global and strategic landscape. Our journey to net zero is the biggest opportunity in decades. However, a failure to act now—as many commentators important to these industries recognise—would jeopardise our economy and our livelihoods, and the lack of support from the coalition for this bill represents a real risk to our future.
The global path to net zero runs through the Australian resources sector and is indeed paved with Western Australia's critical minerals, because these resources are needed by the world—resources produced sustainably. We want to see smart, sensible approaches to cutting emissions. We want to create thousands of secure jobs in my home state of Western Australia. These minerals are needed for solar panels, storage batteries, wind turbines. The world cannot transition to net zero without them.
However, critical minerals are also needed for so many other industries. Perhaps it is the opposition's ideological crusade against renewables and net zero that is seeing them not support this legislation. However, even if that was your frame, these critical minerals are needed by Australia and the world. They're vital components in communications, advanced technology and defence applications. They are also directly relevant for the national security of Australia and its allies.
A lack of diversity in existing supply chains currently represents a very real risk to our security. Currently, we ship critical minerals overseas to be refined before they can be manufactured into solar panels, storage batteries, phones, computers, wind turbines and defence equipment. We have highly concentrated supply chains in the world. These undercut our sovereign capability and lead to jobs and investment leaving Australia. We are missing out on all the jobs that can and should be created by building processing facilities in Australia and operating these facilities here.
Building a booming critical minerals industry will boost Western Australia's economy and create secure jobs in the very important resources sector. We have an absolute abundance of projects ready to go in Western Australia that could get off the ground with the right support. There are more than 38 listed projects already in Western Australia. Coalition senators opposite are failing to represent these projects and Western Australia's ambitions to move up the supply chain with our exports. Western Australians know—although much of the rest of the country doesn't always recognise it—that we are the engine room of the Australian economy, but the nation cannot take this for granted. We must innovate and invest in the future of these industries in our state. If we do, we will turbocharge the resources sector and create jobs.
The Albanese government's last budget delivered the most significant initiatives for the future of Australia's resources in a generation, an agenda that is visionary. But those opposite have their heads in the sand. You offer a policy vacuum—a long list of noes. Peter Dutton said no to cost of living relief, no to higher wages, no to cheaper medicines and, in this case, no to an investment in more jobs in Western Australia. So let's be clear. Having production tax credits for critical minerals is a zero-risk approach for Australia.
Continuation speech:
I stand in continuation on this important piece of legislation, the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024. We see in the opposition their obsession with saying no. In this case, it's saying no to investment and more jobs in Western Australia. Let's be clear. Under this legislation, if companies don't produce a processed critical mineral they're not eligible for the tax credit, nor are they eligible until they succeed. Taxpayers don't pay a cent until the industry succeeds. This legislation is about delivering a greater economic benefit to Australia from what we dig out of the ground. Currently we export minerals for a fraction of their processed value. It is worth this chamber remembering that new industries have often needed government support to get off the ground. This is what other nations are doing with tax incentives. There is also a trend towards the nationalisation of critical minerals. So we are at a very critical point in competing for the finance of critical minerals projects and Australia's role in future supply chains. Frankly, we are at a critical stage for the future of our mining industry. We are competing to attract investment now.
Meanwhile, the coalition's approach to this issue was grants for pet projects, and it was universally critiqued as not being fit for purpose. And they have absolutely nothing on the table now. They have no interest in tackling Australia's dig-and-ship culture that has seen Australia fail to add value to our own resources during previous mining booms. The coalition's Western Australian senators and MPs are turning their backs on their communities. Be warned: they will be relying on tax from WA's resources sector to help fund the $600 billion for the seven risky and expensive nuclear power stations that the Australian taxpayer will foot the bill for. This includes an uncosted nuclear power station for the town of Collie.
But what Collie wants is support from this legislation to get projects off the ground, projects that will get off the ground with the passing of this bill. Hardworking people have, for decades, worked in Collie in the coalmines and power stations that have been the engine of our great state. However, as solar panels on our homes drive cheaper energy production, it has been known for some time that the ageing power station is set to close by the end of this decade. Meanwhile, we have the member for Canning wanting to address issues by arguing for a nuclear fantasy and Collie coal exports in a continuation of their dig-and-ship mentality. It's also worth remembering that Collie coal exports are also a fantasy, as the last ship of coal exported from Collie caught fire because it's not stable enough for export. The coalition are simply not working with communities. They aren't working with industry. Instead, they simply want to impose their own irrational agenda.
In contrast, look to the work of the Collie Just Transition group, made up of WA government, industry, businesses, unions and community organisations. They have come together to build a just transition plan for Collie. They've put forward an agenda that sees the maximisation of opportunities for affected workers, a plan that diversifies the local economy, brings millions of dollars of new investment into the region. And it's a plan that includes projects that will get off the ground with the support of this legislation. I note that it includes a magnesium refinery where Magnium Australia are looking to CSIRO patented technology for the clean extraction of magnesium metal. It also includes International Graphite's mine-to-market battery graphite materials project.
The people of Collie want a say in their future as well as real investment that brings money and jobs into their town, not a taxpayer funded nuclear power plant or a coal fuelled fantasy that ships pollution and their jobs offshore. The people of Collie already know that critical minerals are literally critical to their future. The benefit this production tax credit will bring to Collie is just one local example of Labor's plan to grow our WA economy, an economy that helps workers earn more with skilled jobs in industries with a future—like critical minerals. There are communities right around WA that will benefit from this production tax credit. There are projects in Perth. There are about 12 in Forrest and 20 or so in Durack. From the Northern Territory and South Australian border of WA to Esperance, the south-west and the Kimberley, communities are being ignored by the Leader of the Opposition, Mr Dutton; ignored by the member for O'Connor; and ignored by the Forrest candidate Ben Small, a former Liberal senator in this place. They should all know better. It's clear the view of the leader of the WA Liberals, Libby Mettam, doesn't matter either. She said, 'We will support this measure,' but she doesn't have a vote. Those opposite do.
Shane Love, Leader of the Nationals and Leader of the Opposition, was also ignored when he said, 'It is essential not just for Western Australia and not just for Australia but for the western world.' What about Mia Davies, the Nationals candidate for the federal seat of Bullwinkel, who said, 'Downstream initiatives are welcome'? Well, I'm sorry to say, Mia Davies, that under a Dutton coalition government, which you aspire to be part of, such initiatives will not be welcomed.
Nor are the coalition listening to Australian business. The coalition position on this bill does not reflect calls from the CEO of Australian Strategic Minerals, Rowena Smith, or from the managing director of Wesfarmers, Rob Scott. They're ignoring Rebecca Tompkinson of the Chamber of Minerals and Energy WA, who has said, 'This is a smart targeted use of the tax system to solve big problems, leverage our competitive advantages and enhance Australia's prosperity.' They ignored Warren Pearce, CEO of the Association of Mining and Exploration Companies, when he said, 'This bill needs to pass parliament.'
Investors are looking for a reason to choose Australia over other countries right now. The window of opportunity is narrow, and the coalition doesn't care that our investment and jobs will go elsewhere. This issue is a stark reminder to Western Australian voters about what the coalition thinks about our state. You are ignoring the real issues and instead focusing on 'ship the sheep'. You don't actually want to keep sheep. This would mean keeping them onshore.
The ACTING DEPUTY PRESIDENT (Senator Fawcett): Order! Senator Pratt, I remind you to address your remarks through the chair.
Those opposite don't actually want to keep the sheep. That would mean keeping them onshore to be processed in WA, adding value to our exports and bringing jobs and local economic benefits. Meanwhile, they also want to waste the opportunity to add value to our natural resources—dig and ship.
The ACTING DEPUTY PRESIDENT: Senator Pratt, I remind you that imputations to motive are out of order.
The coalition take Western Australia for granted, just like they have taken Western Australia's mining revenues—which underpin our national economy—and tax revenue for granted. How will they pay for their $600 billion worth of nuclear power plants?
In contrast to the coalition's 'dig and ship' mentality, the Albanese government is committed to investing in climate action, to working with other nations to address current supply chain insecurity for critical minerals, and to investing in skilled jobs and in regional communities. It is also committed to getting a bigger and better economic return on what we mine. I'm proud to support this bill and to stand up for a future made in Australia.
