News about Australia

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We’re investing millions in ‘Australia’s moon landing’. Will it launch?

Superlatives were everywhere on Tuesday at a press conference to unveil a joint $940 million investment by the federal and Queensland governments in quantum computing company PsiQuantum.

From Prime Minister Anthony Albanese: “This will have a greater multiplier impact on job creation here in Brisbane and Queensland than anything we could possibly have thought of. Anything at all … This truly puts Brisbane and Queensland on the map.”

From Industry and Science Minister Ed Husic: “It brings huge economic and industrial benefit which we need to seize … It would be a weird government to say, ‘no, we’re not interested.'”

And the kicker, from Queensland Treasurer Cameron Dick: “This is Australia’s moon landing, Queensland’s version of Apollo 11.”

The space race reference was likely no coincidence, given US ambassador Caroline Kennedy was in the room – though Mr Dick stopped short of channelling her father John F Kennedy by suggesting Queensland was investing in quantum computing “not because it is easy, but because it is hard.”

Her presence was a reminder of the fact that the recipient, PsiQuantum, was an American company, which the ambassador declared a “win for the alliance”.

That was a fact the ministers preferred to sidestep, repeatedly pointing out that two of PsiQuantum’s founders were not only Australians, but even had Australian accents.

“Everyone heard, that was an Australian. That is as Australian an accent as you can get,” Mr Husic said.

Patriotism and parochialism are at the heart of the political message of the government’s ‘Future Made in Australia’ plan, which Mr Albanese unveiled earlier this month.

The plan is to invest public money into ‘future-facing’ industries, including green technology and advanced manufacturing. This is the first big announcement, although earlier investments in solar panels and battery manufacturing have also been rebadged as part of the plan.

There’s a global context. Countries around the world have been pouring public money into private industry, led by China and the US. For western governments, it represents a shift in philosophy, motivated by the climate transition and the spectre of economic ‘decoupling’ with China.

But some economists have voiced objections. The International Monetary Fund warned small advanced economies like Australia’s had less chance of success competing against the larger pockets of the US and China.

And Productivity Commissioner Danielle Wood warned the approach could see money diverted away from its most productive use, especially without strict guidelines to ensure value for money.

Treasurer Jim Chalmers was quick to agree, suggesting Ms Wood had made “valid points.”

His public comments about the plan have consistently emphasised the need for “guardrails,” in contrast with the more bullish language of Mr Albanese and Mr Husic.

Asked last week what the Future Made in Australia legislation would include, he answered in the negative:

“I see [it] as a really important opportunity to impose very strict rules and frameworks over the substantial investments that we want to make … We don’t want this to be some kind of free-for-all of taxpayer money, we want to make sure it’s responsible and focused.”

In a speech at the Lowy Institute tomorrow, Mr Chalmers will outline what he calls “strict criteria” to bring “rigour” to the government’s investment decisions.

But there are several unanswered questions about how PsiQuantum was picked as the government’s first winner, and whether “strict criteria” were applied.

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