The future of the federal government’s signature manufacturing strategy could rest on it pulling financial support for a controversial Northern Territory gas project.

As Labor looks to pass its Future Made in Australia policy through the lower house as early as Wednesday, the Greens have flagged negotiating on the issue.

Under the manufacturing strategy, the government wants to spend more than $22 billion over the next decade in areas such as renewable energy and critical materials to safeguard the nation’s resources.

With the coalition already indicating its opposition to the plan, the government needs the support off the Greens to get Future Made in Australia through parliament.

But Greens leader Adam Bandt said the party would abstain from voting on the proposal in the lower house, subject to negotiations with the government on the issue.

Calls from the minor party include redirecting $1.5 billion in government support for the Middle Arm gas project in the Northern Territory towards clean energy initiatives.

Other terms include a stop to new coal and gas mines , as well as the fund not financing coal or gas projects in Australia or overseas.

Guarantees on public ownership of projects would also need to be assured.

“A future made in Australia can’t be a future for more coal and gas,” Mr Bandt said.

“By expanding coal and gas past 2050, Labor will suck investment and labour away from critical minerals, green steel and green hydrogen.

Mr Bandt said the Greens were still willing to negotiate in good faith.

“Labor needs to be ready to shift as well. Labor must drop its insistence on opening more coal and gas mines,” he said.

Infrastructure Minister Catherine King said the strategy would help to leverage Australia for decades to come.

“We, of course, need a government that is willing to step up to partner with the private sector to build a stronger economy and a future made right here in this country,” she told parliament.

“Australia has the opportunity to create those new jobs, those new industries and those new skills.”

 

By Andrew Brown in Canberra

Source: AAP