NRF told to prioritise national interest over short-term gains
The Albanese government has instructed the $15 billon National Reconstruction Fund to put national interest over short-term returns amid scrutiny of its risk appetite.
Industry Minister Tim Ayres and Finance Minister Katy Gallagher have instructed the $15 billion National Reconstruction Fund to favour national interest and long-term strategic outcomes over short-term financial returns, in a newly issued statement of expectations.
In a joint statement sent to the government-owned National Reconstruction Fund Corporation (NRFC) this week, Ayres and Gallagher outlined four key directions, including a revision to the investment mandate to make clear that public interest and longer-term gains must take precedence over immediate profitability.
“The NRFC must ensure that its risk appetite meets Government objectives for the National Reconstruction Fund,” the ministers wrote. “Whilst the NRFC is required to deliver a positive return to the Government over time, we expect the Corporation to prioritise national impact over short-term profit.”
The ministers also said they expected the fund to meet its ambitious investment target of $1.5 billion for this financial year — more than triple its cumulative investment of $434.5 million to date.
