The Opposition has pushed for the establishment of a parliamentary inquiry into the federal government’s $470 million investment in PsiQuantum, claiming the US-based tech firm was “given a head start” over local companies.
Manager of Opposition Business in the House and Shadow Minister for Government Services and the Digital Economy Paul Fletcher moved a motion on Monday to establish a Select Committee on PsiQuantum’s funding.
If approved, the motion would establish an inquiry into the process behind the Labor government’s decision to provide $470 million, including a $189.5 million equity investment, to PsiQuantum.
In partnership with the Queensland government, the deal will see nearly $1 billion provided to PsiQuantum for the company to attempt to build a fault-tolerant quantum computer in Brisbane.
Concerns
After it was announced earlier this year, the Opposition has continually raised concerns over a lack of transparency around this investment, why a US-based company was selected over a local quantum firm, and whether the stated timeframe to develop the computer is achievable.
Fletcher said the committee would investigate the process by which PsiQuantum was selected by the government, the expression of interest process, the financial implications of the investment, the commercial and scientific terms, and whether actual or potential conflicts of interest have been appropriately managed.
“There are many aspects of what happened here which are very concerning, and there needs to be a parliamentary inquiry to get to the bottom of this decision, the reasons for it and many other aspects of what happened,” Fletcher said in Parliament on Monday.
“The sad reality is that, as a consequence of this decision, Australian taxpayers are now exposed to almost $1 billion of their money being put at risk in what is a remarkably speculative venture.”
Labor pushes back
The motion was debated in the Federation Chamber, and government MPs signalled that Labor would vote against it, meaning it will be defeated, and the committee inquiry will not be established by the lower house.
Labor MP Zaneta Mascarenhas said the motion was “another example of the Opposition’s refusal to engage with real work”.
“This isn’t some off-the-cuff decision,” Mascarenhas said on Monday.
“This is part of a methodical process. The process has involved looking at economic, legal, commercial, technical, probity and also national security advice.
“It was a whole-of-government effort. That’s how you get things done.
“The future is coming, and it’s coming fast – and the future is quantum computing.
“We’re actually doing it, we’re pushing forward. Meanwhile, what’s the Opposition doing?
“Tearing it down, ignoring the evidence and sticking to outdated ideas.”
‘Head start’
Fletcher also said that an Opposition FOI request has revealed that the government engaged probity advisers months after its officials had already met with PsiQuantum and received an unsolicited proposal from them, and that this cast “further doubts over whether proper probity processes were followed”.
Probity advisers were engaged by the government in January 2023, and the Industry department’s expression of interest (EOI) to the local sector opened in August that year.
PsiQuantum was not invited to participate in this EOI process.
“Claims made by Labor [and Industry Minister] Ed Husic that this investment met rigorous probity standards is utter nonsense,” Fletcher said in a statement.
“The evidence shows that PsiQuantum was given a head start and the horse had already bolted.
“Any use of taxpayer funds must comply with the proper standards of transparency, fairness and contestability.
“Instead, this deal has been cloaked in secrecy from the start, with serious questions still unanswered.”
It’s legit, claims Labor
In response, a spokesperson for Husic said the FOI documents show that the investment was put through “rigorous and lengthy due diligence including through legal, technical, financial and national security”.
“If Mr Fletcher was serious about these government investments, his motion would include examining the way the Coalition made its $2 billion decision on Moderna or their other decision to just back Silicon Quantum Computing,” the spokesperson told The Australian.
“Ultimately, Paul Fletcher and the Coalition are demonstrating they don’t think Queenslanders deserve a world-leading project that will strengthen its economy, jobs and attractiveness for private investment.”
Last week, the new Queensland state government signalled that it would review its side of the investment deal, while Prime Minister Anthony Albanese said it was an “enormous opportunity” for Australia.
