1 week Ago By Paul Sakkal, David Swan
A $1 billion project to house a world-first quantum computer in Australia hangs in the balance as the Queensland government conducts a review of a deal it struck to fund a start-up alongside the federal government. In April, the federal and Queensland Labor governments both pledged $470 million in equity, loans and grants to US-based firm PsiQauntum, which is trying to build a new form of computer capable of solving previously impenetrable problems. Prime Minister Anthony Albanese announced the tie-up in April alongside then-premier Steven Miles.
Credit: Jamila Toderas But in a move that will trigger hostilities with the Albanese government, the newly elected Liberal National government led by Premier David Crisafulli announced on Monday it would review its commitment to fund PsiQuantum. Queensland Treasurer David Janetzki has previously claimed the tie-up, which the former state Labor government said would create 400 jobs by locating the computer in Brisbane, was “dripping with Labor lobbyists” and said he had asked his officials to look into the funding agreement. “We know that PsiQuantum had the inside running with the current federal and former state government.
Throughout the year we have raised our concerns about the complete secrecy of the tender process and the way it sidelined expert advisers. We will examine the details of this deal in full,” he told The Australian . The Australian National Audit Office, which scrutinises government spending, said in August it was considering an examination of the agreement , after opposition science spokesman Paul Fletcher wrote to the watchdog seeking a review.
Industry and Science Minister Ed Husic has repeatedly accused the opposition of making unsubstantiated accusations in its criticism of the deal. He has described the PsiQuantum deal as a unique opportunity to hook Australia into a frontier technology that could reshape the economy and has emphasised that Australia missed out on bringing chipmaker Intel to Australia in the 1990s, suggesting the quantum start-up presented similar value. Husic’s office was contacted for comment.
Taxpayers’ contributions to PsiQuantum are largely dependent on it hitting progress milestones on its technology. This masthead reported last week that the opposition was calling for a parliamentary inquiry after it emerged a key Husic adviser on the deal was a friend and former housemate of an executive at a venture capital fund with a stake in PsiQuantum. Fletcher has previously claimed Husic was “bedazzled” by PsiQuantum, visiting its US headquarters twice.
The start-up also hired a Labor-aligned lobbying firm to spruik the company. Husic’s office has defended the deal as having high probity standards. Veteran Queensland entrepreneur and investor Steve Baxter said he supported governments getting involved in cutting-edge technology but “found little endearing about this deal.
” “If government wants to encourage deep tech commercialisation then they would be better placed by incentivising the private sector to get the desired outcome,” Baxter said. Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter .
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