TOM FORBES: Are we about to take another step toward Australian-based space travel? This morning the Federal Government has announced it is investing $75 million into Gold Coast-based Gilmour Space Technologies, which took its first test flight of an orbital launch vehicle in July last year from Bowen in North Queensland. Remember that? The money comes from the National Reconstruction Fund Corporation. To explain the reasons why, you are joined by the Minister for Industry, Innovation and Science, Senator Tim Ayres. Good morning, Senator.

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: G’day, this is a very exciting day for the Australian space sector and for the Gold Coast.

FORBES: Yeah, and there’s also a little bit of confusion as well, Senator. Why is the Federal Government tipping money into Gilmour Space, which is effectively a private company?

AYRES: Well, this is important for jobs. It’s important for our manufacturing and our technology sectors. And it’s important in strategic terms for Australia to have a role in the space sector. You know, Australia’s become a favoured place for global companies and for countries to do space launches. The Albanese Government wants to make sure that we’re building a space sector here that grows jobs but is also important in strategic terms. And this investment from our National Reconstruction Fund, which is an investment – not a grant, it’s an investment – alongside the Australian super sector turns this company, which has been growing on the Gold Coast and in Bowen in Queensland, into a billion-dollar Australian space technology company.

FORBES: So, you –

AYRES: It delivers jobs and it’s good for the supply chain locally too.

FORBES: So, the Australian population or taxpayers now have a slice of Gilmour Technologies? Is that how it works?

AYRES: Yeah, absolutely, that’s right.

FORBES: So, if they make money in the future, we’ll get a divvy?

AYRES: Yeah, absolutely. So, it’s an investment, not a grant. It’s a very different approach from the Albanese Government here to what previous governments have done. That is, we are investing in new Australian manufacturing because our objective here is to rebuild Australia’s manufacturing capability. And these are jobs that, you know, when new manufacturing firms start, when new factories open, they open in our outer suburbs at our industrial regions, not in the CBDs and the sort of financial districts but in blue-collar areas creating good science and technology and manufacturing jobs. And that’s what this investment will do alongside all of the other investments that we’re undertaking in the future to rebuild Australia’s manufacturing capability.

FORBES: It’s worthy of note that Gilmour has announced this morning they’re actually receiving $217 million in a series of funding, $75 million of which is coming from the National Reconstruction Fund. There’s also some other big investment houses jumping on board as well. Some may argue that the horse has already bolted – we are so far behind the United States, Russia, China, a myriad of other countries when it comes to space travel. What makes you think that investing money in Gilmour Space Technologies on the Gold Coast is a good investment?

AYRES: Well, can I make two points about that? The first is, yeah, this is a co-investment where the government leads the private sector. So, $75 million together with an investment from Hostplus, one of our major superannuation organisations. It has crowded in a whole lot of private sector investment. So, in this round $217 million. That is what the Fund is for. It’s not to just invest by itself; it’s to bring in the superannuation sector and private capital into our manufacturing sector.

In terms of our ambitions here, Australia needs its place in the space sector not to dominate the space sector. We want our slice because in strategic terms it matters for Australia. And these technologies are important not just for their own value in space but they’re transferable, of course, into defence capability, into a whole lot of other areas that Australia in terms of our sovereign capability, in terms of our national interests, the Albanese Government sees this sector as important for our future. So, it’s important in jobs terms, but it’s also really important in national interest terms.

FORBES: Do you get a say on how that $75 million of taxpayer-funded money will be spent within Gilmour, or do you give them the pot of money and say, “Go for it”?

AYRES: Well, it’s important that the National Reconstruction Fund can independently do this kind of work. The Fund has been set up. Obviously, I am closely engaged with the Fund, but they, like any other investor, will be playing a close role in the ongoing – you know, as now having a formal role within the company. They’ll be engaged with the company as it proceeds, just like any other investor in any other firm would be. What they’ve done here is crowd in a whole lot of private capital to build this Gold Coast company – a vote of confidence in the Gold Coast’s capability here – into a major Australian firm that’s domestic manufacturing footprint is overwhelming. More than 70 per cent of the machinery and the technology here is manufactured in-house, and they have an overwhelmingly Australian supply chain.

FORBES: All right. Senator Tim Ayres, thanks for shining a light on this new funding, this new investment by the Federal Government this morning. Appreciate your time.

AYRES: Thanks, Tom.