Former Industry minister Ed Husic spent a decade advocating for the tech sector from opposition, long before he had joined even the shadow Cabinet. Old habits certainly die hard, so it is no surprise that he has picked up where he left off, only now he is advocating for the tech sector from the backbench.
It’s a welcome return, and he didn’t hold back in a speech to the German Australian Chamber of Industry and Commerce last week. There was a boldness about the call to action that might have revealed a level of frustration at his former Cabinet colleagues.
He has called for a Cabinet-level committee to steer industry policy geared toward the development of sovereign capability to build economic resilience.
The pursuit of sovereign capability (and with this he includes energy independence) should be the central organising principle of government. That’s the line that jumped out at me, if only because it reveals an underlying frustration with his former Cabinet colleagues.
You can read a report on the speech here. It draws inspiration from the nationally focused, export-oriented industry development programs of post-WWII Germany.
Beyond the fact that both Germany and Australia were/are in perilous circumstances in terms of a dire need for a rebuild, the parallels between German then and Australia now seem a little thin.
But the central theme that Australia needs a whole-of-government, nationally inspired effort to build in industrial capability and sovereign capability is absolutely on the money.
“The challenge before us is not whether Australia can build sovereign capability,” Mr Husic said.
“It is whether we enable that to happen in a haphazard way, accidentally, or to choose it: to actively organisse our national economic settings around that objective,” he said.
“Germany’s strength did not emerge accidentally.
“It came from deliberate long-term alignment between industrial policy, workforce capability, export mentality and research investment.”
It remains to be seen whether Australia already has a Cabinet-level industry development committee in place.
Certainly that was a recommendation of the Strategic Examination of R&D (SERD) review. It called for the creation of a powerful National Innovation Council.
Jim Chalmers’ budget earlier this month held out funding for a National Resilience and Innovation Council. It is not absolutely clear yet what that council looks like, but it appears to be a Cabinet-level committee.
And maybe its just me, but when I see the word “resilience” these days, I see a code for “sovereign capability” and “sovereign supply”.
So we will wait to see what that council looks like. The current Industry minister Tim Ayres is taking a measured, methodical approach to his SERD response. But some on the shape of his response would be useful.
The final words here go to Ed Husic. He’s saying this stuff out loud, but I don’t think the sentiment is far from where Senator Ayres or assistant minister Andrew Charlton sit.
“Building sovereign capability can’t be left to chance. The pursuit of it must become a central organising principle of government,” Mr Husic said.
“Every portfolio should be required to demonstrate how it contributes to strengthening national resilience,” he said. “Industry policy. Defence policy. Energy policy. Skills policy. Science policy. Procurement policy.”
“All aligned. All clicked together.”
In the news:
- Vic govt claims $1.2bn data centre edge on NSW
- The Pope understands AI. Does Australia?
- Hockey warns against ‘crushing innovation’ as AI disruption looms
- The Pope understands AI. Does Australia?
- Aussie startup sector records stunning growth, Melbourne booms
- $14k dinner: DTA wined and dined its OECD boosters
Do you know more? Contact James Riley via Email.