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National Reconstruction Fund Consultation Paper
University of Newcastle
Recommendations:
1. In assessing the return on investment in projects, we recommend the Board give weight
to the significant multiplier effect of investing in regions, especially those in economic
and social transition. This includes the social benefits of creating jobs that replace
intergenerational, high quality employment previously provided by traditional industries.
2. In assessing the likely success of proposals, we recommend the Board consider the
significant value created by enduring and commercially successful research partnerships
between business and university, where such partnerships can de-risk business growth
and diversification.
3. When considering regional growth as a benefit of investment, consider the additive
effect of regional anchor institutions – particularly universities – to establish critical mass
and support industry growth across sectors.
4. We recommend ongoing investment in skills in rapidly growing sectors such as new
energy and advanced manufacturing, as critical to the success of these sectors.
The University of Newcastle welcomes the opportunity to provide feedback on the National
Reconstruction Fund (NRF).
As a member of the Australian Technology Network of Universities (ATN), the University fully endorses and supports the ATN submission, and provides this in addition to the ATN submission.
The University strongly supports suggestions the NRF further leverage significant Australian
Government investments in the university sector, including the Trailblazer program, Australian
Research Council Centres of Excellence and similar investments focused on accelerating commercialisation of Australian knowledge, products and processes. Examples linked directly to priority areas include the $270 million Trailblazer for Recycling and Clean Energy, with significant manufacturing expected to be established in the Hunter Region as a result; and the Centre of
Excellence for Enabling Eco-Efficient Beneficiation of Minerals, which works directly with industry partners to increase the efficiency and reduce the environmental impact of minerals extraction and processing.
Complementary Reforms
The University of Newcastle is strongly engaged in the new energy sector, and other priority industry sectors in the Hunter and Central Coast regions. The most significant barrier to value add, growth and diversification in priority areas is the availability of skilled workers. The Electricity Infrastructure Jobs
Advocate November 2022 report to Government identified workforce supply as the number one issue
in delivering on the ambition of the NSW Renewable Energy Zones, which attract new industry development. While the Hunter and Central Coast regions has a skilled manufacturing and resources workforce, additional investment in skills and education is required to support rapid growth. For maximum impact investment should bring together vocational, industry and university education and training.
We would also strongly support university input into the NRF governance structure, enabling the
Australian Government to draw on sector expertise to design and assess investment opportunities.
Regional benefits and the role of strong anchor institutions
The presence of a proven university partnership should be taken into account when assessing NRF projects and their risk profile. Strong and enduring relationships between universities and industry partners play a significant role in de-risking new industry development and investment, and allow companies to pivot and evolve. An excellent example of this is AmpControl, a Hunter company that partners with the University of Newcastle, including through joint venture ResTech, the research arm of AmpControl. Through partnership, AmpControl has grown and diversified significantly over 50 years from mining to med tech, standalone power systems, electric vehicle and hybrid electric boat development.
We strongly support the focus on regional development and diversification when assessing investment decisions. In a region undergoing a major economic and industrial transition, the benefit of creating jobs extends beyond employment to social cohesion and community engagement, and preventing social dislocation. Energy supply regions are in the midst of a national transition and accompanying structural adjustment, away from coal-fired power and its supply chains, and towards new energy. The Hunter Region supplies more than 60% of NSW’s power supply, through coal-fired power stations, scheduled to close over the next 10 years. Investment return in regions like the
Hunter should be considered in the context of industrial transition and the resulting social impacts, and we urge the Government to give weighting to this in the process of assessing proposals.
Beyond individual business-university relationships, we urge the Board to consider the broader role a university can play as an anchor institution in a region, and the positive effect this can have on business growth and diversity across a sector. Anchor institutions – organisations with a mission tightly connected to the wellbeing of a place – can create critical mass of expertise and innovation in region, essential to business success. In their study of regions where innovative manufacturing businesses thrived, Van Agtmael and Bakker (The Smartest Places on Earth, 2016) identified they contained ‘Research facilities with deep, specialist knowledge; educational institutions; government support for basic research; appealing work and living environments’, in addition to capital and an environment that fostered creativity. The presence of an active anchor institution, whose success is bound to the success of its communities, should be considered favourably when assessing investment proposals.
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