MATTERS OF PUBLIC IMPORTANCE

Ms CLUTTERHAM (Sturt) (15:54): The private sector is the engine room of our economy, and it supports the inclusive and sustainable productivity growth that is at the heart of our national agenda. It operates by promoting economic growth through investments, knowledge transfer and innovation. Without the private sector, new markets are not created, competition is not fostered and investments in critical national projects, perhaps through private equity or venture capital, are not made.

Further, data sourced from the World Bank tells us that the private sector is the source of nearly 90 per cent of the world's jobs. This means direct employment, the provision of finance to many industrial sectors and geographic regions, acting to boost living standards and improve the availability and quality of goods and services, such as housing, infrastructure, health and education, often through public-private partnerships that allow for risk sharing so governments and the Australian taxpayer do not have to shoulder all of the financial and operational risk.

This risk-sharing approach is particularly relevant when it comes to critical infrastructure. Equally, with its capacity to invest, innovate and commercialise, the private sector contributes environmentally friendly technologies which are valuable in the face of climate change and the transition to clean, renewable energy. This can positively impact many critical development goals, such as food security, health and water.

Finally, the sector is also a reliable source of revenue for government operations through its contributions to taxes and royalties and its contribution to communities and social issues. Australians care about whether we are creating secure jobs, building the industries of the future and ensuring essential services deliver for the communities that rely on them.

That's why I don't accept the proposition that the answer to every challenge is simply more public ownership and less private investment. Australia's success has never been built on government alone or the private sector alone. It has been built on partnership.

Government, of course, has a critical role to play. We invest in essential services. We build infrastructure.

We support education, research and skills development. We provide the strategic leadership that helps Australia prepare for the future. But we also recognise that innovation, entrepreneurship and investment are often driven by businesses willing to take risks, develop new technologies and create new industries.

So the question is not whether something is public or private; the question is whether it delivers outcomes that benefit Australians. Nowhere is this more apparent than in the defence and low-carbon liquid fuels industries. We can see that approach at work in my home state of South Australia.

Firstly, private company HAMR Energy is making a substantial $800 million investment in a drop-in sustainable aviation fuel facility, supported by conditional funding from the Australian Renewable Energy Agency. When successful, it will establish Australia's first large-scale methanol-to-jet sustainable aviation fuel refinery, helping strengthen fuel security, support regional forestry industries, create jobs and reduce emissions from aviation.

The lesson here is not that government should own the refinery, and it's not that government should simply step aside. The lesson is that government can help unlock investment, share risk and create the conditions for private capital to deliver public benefit. That is a practical, outcome focused approach.

We see the same principle in our growing defence industry. Anduril, the private developer of the incredible Ghost Shark capability, made a substantial investment into this product and into commercialising it for the Australian market. This has resulted in a clear execution of speed to capability of critical deterrence and surveillance equipment for the benefit of the security of the Australian people.

The role of government is not necessarily to own this company. The role of government is to be an active partner, supporting research, developing skills, providing procurement pathways and giving innovative Australian industries the confidence to invest and grow by rewarding risk with contractual certainty.