Greens Senate Power Play Gives Hollow Victory, Minister Says

Labor Agrees to No New Coal or Gas Amendment

Industry and Science Minister Ed Husic speaks to media during a press conference in Canberra, Australia, on May 13, 2021. (Sam Mooy/Getty Images)

The Minister for Industry and Investment, Ed Husic, has pushed back on claims the Greens party have won a victory over the government after negotiations on the National Reconstruction Fund (NRF) saw amendments to stop the Fund from investing in future coal and gas projects, and native forests logging.

The NRF is a corporate Commonwealth entity that is designed to help the federal government rebuild Australia’s industrial capabilities via the corporate investment of $15 billion (US$9.91 billion) in manufacturing projects in suburban and regional areas.

The Greens’ amendments to the Bill create “a class of ‘prohibited investments’ within the legislation that explicitly bans the National Reconstruction Fund Corporation from financing the extraction of coal and gas, the construction of gas pipelines, and the logging of native forests.”

The left-wing party also secured a government amendment so that investments made by the Board will also have to align with the legislated climate targets and any future updated commitment by Australia under the Paris Agreement.

Speaking to ABC Radio National, Husic said that the government saw the amendments as a small addition that did not change the purpose of the NRF as investment would never be made in those types of projects.

“The fund was never about what the Greens were concerned about, and we were happy to agree to that amendment if that’s what was required to get them on board. And we’re grateful for their support and for others,” Husic said.

In this photo taken early Jan. 2020, and provided Thursday, Jan. 16, 2020, by the New South Wales National Parks and Wildlife Service, NSW National Parks and Wildlife Service personnel inspect Wollemi pine trees in the Wollemi National Park, New South Wales, Australia. (NSW National Parks and Wildfire Service via AP)

“When the Greens put that forward to us as a concern, we assured them at the time that this is not what this fund is about. It’s not about just extraction or logging, it’s about the value add.”

“The big thing about this fund is the Prime Minister has wanted us as a country to think about value add instead of just doing the mining of critical minerals,” he said. “For example, making Australian-made batteries onshore to meet the needs to reduce emissions.”

The photo shows North Rankin Complex of the North West Shelf Project owned by Woodside Energy in Western Australia on Feb. 21, 2023.
(Courtesy of Woodside Energy)

Husic has previously said that the goal of the Fund is to help the government generate homegrown industries that secure Australia’s future via the largest peacetime investment in manufacturing the country had witnessed.

Greens Argue Amendments Make Australia’s Future Safer

However, the Greens spokesperson on industry, regional development, and transition, Senator Penny Allman-Payne, said on Thursday that the amendments would ensure that the NRF would instead be focused on creating high-quality jobs across a diverse economy, particularly in regional Australia.

“The Greens took a policy for a manufacturing fund to the election, and we strongly support public investment in rebuilding manufacturing in Australia,” she said.

“Every cent spent on coal and gas would wreck the climate and divert much-needed funding from manufacturing initiatives, especially in regional Australia. The Greens have made sure that this fund will only be invested in building the future of Australian manufacturing, not propping up coal and gas corporations.”

The win for the Greens party comes after it was confirmed in a senate estimate hearing that there was nothing currently stopping the NRF from investing in coal and gas projects.

Party leader of the Australian Greens, Adam Bandt, addresses the media after the resignation of Senator Lidia Thorpe from the Australian Greens Party at Parliament House, in Canberra, Australia, on Feb. 6, 2023. (Martin Ollman/Getty Images)

“We thank the government for the constructive approach they have taken in the negotiations and hope this can continue in the Safeguard and Housing Bill discussions in the coming period,” he said.

Logging Amendment Creates Controversy

Meanwhile, Tasmanian senators Jacquie Lambie and Tammy Tyrrell have slammed the government for the amendment on native logging, calling it a “smack in the face” to Tasmanians.

Taking to Twitter, Tyrrell said that the Labor government had betrayed the logging industry in her state and that she was waiting for an explanation.

“In May 2022, the Prime Minister wrote a letter to workers in the Tasmanian Forest and Forest Products Industry promising support,” she said.

“The Prime Minister said in his letter: ‘The Liberals have gone into overdrive saying that Labor will listen to the Greens. This is nothing but a desperate scare campaign designed to cover up for the fact that Scott Morrison has been a major disappointment for your industry.' The Prime Minister also said ‘Labor will support native forest harvesting.’

“It’s all well and good to tell the industry you support them during an election, but when you’re in government and push comes to shove, apparently you can forget pretty quickly.

Tyrrell has called on the government to stand firm on the Greens demands.

“I don’t think the Greens are bad people, but my word, sometimes they’ve got some bad ideas. The Government’s got to be prepared to call it out, not back it in,” she said.