Government brings forward $6.15bn to support manufacturing

The federal government has announced it is bringing forward $6.15 billion in concessional capital to support Australian businesses affected by global disruptions. The aim is to help protect local manufacturing and supply chain businesses from market disruptions, and support investments in increased production capability, capacity and decarbonisation efforts.

The government says the $1 billion Economic Resilience Program (ERP), $5 billion Net Zero Fund, and $150 million in concessional finance under the Forestry Growth Fund will open shortly to provide a greater scope of support and concessional finance to Australian businesses.

The ERP will provide zero-interest loans to fuel, fertiliser and other critical supply chain businesses to support Australia’s domestic industries and supply chains impacted by market disruptions.

Originally on track to open mid-year, the Net Zero Fund will open sooner to support new manufacturing investment and improvement of energy efficiency in hard-to-abate sectors. This includes scaling domestic manufacturing capabilities in clean energy supply chains — such as wind, solar and energy storage solutions — and the production of low carbon liquid fuels.

The Forestry Growth Fund will support timber processing for use in housing construction and investment in mills and processing facilities to move up the value chain.

These programs are all sub-funds under the government’s $15 billion National Reconstruction Fund.

“Today we are unlocking billions in capital to keep our economy moving forward,” said Prime Minister Anthony Albanese. “Unprecedented events overseas continue to disrupt businesses here at home — the Economic Resilience Program is about investing in more production for fuel, fertiliser and logistics.”

“Investing in Australian industry is about making Australia stronger,” said Minister for Industry Tim Ayres. “By bringing forward $6.15 billion in capital, the National Reconstruction Fund can more quickly support businesses to increase production, capability and capacity.

“This will help them to navigate global supply chain disruption and make sure Australia has more of the things it needs.”

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Image credit: iStock.com/Alfio Manciagli