The Australian - New cloud over PsiQuantum: Coalition

The Coalition says a further “cloud” has been cast over the Albanese government’s PsiQuantum investment following revelations the company has not yet met the conditions required to receive most of the funding pledged half a year ago. 

Public service officials revealed in Senate estimates $125m that had been disbursed has not yet been converted to a stake in PsiQuantum because the company has not yet raised other sources of equity funding. 

The rest of the promised loans – $275m – has not yet gone out the door because specific conditions have not been met, but officials did not say what those conditions were. Opposition science spokesman Paul Fletcher said the Senate testimony raised new concerns about the controversial investment. 

“The Albanese Labor government’s big risky bet on one American company is looking shakier and shakier by the day,” he said.

 “Nearly $1bn of taxpayer funds were committed to this uncertain project by the Albanese and Miles Labor governments in a transparent attempt to buy votes.” 

Mr Fletcher has led criticism of the $1bn investment into USbased start-up PsiQuantum – a centrepiece of the government’s Future Made in Australia agenda – which promised to make a faulttolerant quantum computer in Queensland. 

The newly elected LNP Queensland government is now reviewing its stake in the project, The Australian revealed this week. 

Mr Fletcher focused criticism on Science Minister Ed Husic for the “secret” PsiQuantum deal. 

“In contrast to the studied silence of his cabinet colleagues, Ed Husic has given repeated assurances that everything about this secret deal is above board,” Mr Fletcher said. 

“Alarm bells should be ringing given key financial milestones haven’t yet been reached, putting the project under a cloud. 

“A parliamentary inquiry is needed to find out what went wrong. Ed Husic says he welcomes more scrutiny of this deal, and an inquiry would allow him to honour his word. The Coalition will continue to press for such a review.” 

A spokesman for Mr Husic accused Mr Fletcher of trying to “invent any excuse to talk down the work of Australians working to supercharge this Aussie industry and strengthen national security”. 

“The investment was subject to rigorous, lengthy due diligence covering legal, technical, financial and national security aspects,” he said. “It would be inappropriate to comment on matters subject to commercial-in-confidence arrangements.” 

In Senate estimates, Department of Finance secretary Jenny Wilkinson said $275m in funding for PsiQuantum had not yet been drawn down because it was “subject to a number of conditions”. 

Cameron Jose, assistant secretary in the commercial group of the Finance Department, said a separate $125m in equity funding had been disbursed but had not yet been turned into a stake in PsiQuantum because milestones had not yet been met. 

“There are a range of conditions that the company has to do, including an equity-raise more broadly, because the facility, obviously, is going to cost more than the commonwealth’s investment,” Mr Jose said. 

“So it has to raise that and meet a number of conditions around that before it converts to equity.”