InnovationAus - Coalition demands parliamentary inquiry into PsiQuantum deal

The federal Opposition will on Monday press for a parliamentary inquiry into the government’s investment in US-based quantum computing startup PsiQuantum, claiming questions remain about whether proper probity processes were followed and if the company was given preferential treatment.

Newly-released documents obtained under freedom of information laws confirm that PsiQuantum representatives had met with government officials, including the Industry minister Ed Husic, months before the appointment of external probity advisers to the proposed investment.

Mr Fletcher, who is manager of Opposition business in the House and shadow minister for government services and the digital economy, will on Monday ask Parliament to establish a Select Committee on PsiQuantum Funding to investigate the processes that led to the federal government investing $470 million into the company.

The motion also calls for the committee to inquire into a rushed Expression of Interest process conducted with the rest of the quantum sector in Australia, and into the management of perceived or actual conflicts of interest.

A trove of FoI documents related to the investment, including the estimates briefing pack for senior Industry department officials from the June hearing had raised further questions about the process that led to the nearly $1 billion investment in PsiQuantum by the federal and Queensland governments.

Mr Husic has previously said he would “welcome” scrutiny of the investment, including by the national audit office, which is considering adding an investigation of the deal into its 2024/25 program of work.

The motion to establish the parliamentary inquiry is unlikely to pass given the numbers in the House, but Mr Fletcher will use the vote to pressure the minister to open the PsiQuantum arrangement to public scrutiny.

“Proper parliamentary scrutiny is long overdue and the Coalition is pushing for a review into this controversial deal,” Mr Fletcher said. “Ed Husic says he welcomes more scrutiny and the ball is now in his court to follow through on his conviction.”

Mr Fletcher said the government claims that the investment had met rigour probity standards were “utter nonsense” and that it was clear that PsiQuantum “was given a head start”.

That PsiQuantum had not been invited to participate in a rushed EOI process like the rest of the industry suggested that the government had already made up its mind and “sealed the deal” with the California firm.

“Any use of taxpayer funds must comply with the proper standards of transparency, fairness and contestability,” he said. “Instead, this deal has been cloaked in secrecy from the start, with serious questions still unanswered.”

“The motion that I have moved is that there ought be a parliamentary inquiry into the investment of almost a billion dollars – and close to $500 million of Commonwealth money – into PsiQuantum,” Mr Fletcher told InnovationAus.com.

“One of the obvious questions is, how is it that PsiQuantum got preferred early access to the minister? That is something we want to understand.”

He said there remained serious questions about the structure of the EoI process.

“Why did participants in the EOI get told that they couldn’t speak to a government official when PsiQuantum had been speak to government officials for months, up to and including the minister? None of that was at all satisfactory in terms of the explanations provided.

The newly elected LNP government in Queensland is understood to be considering its own review of the state’s $470 million investment in PsiQuantum.

State treasurer David Janetzki was given an incoming minister’s brief last week that included an outline of PsiQuantum deal. In the leadup to the election, Mr Janetzki said he would seek a review of the investment.

“It’s both wholly unsurprising and entirely appropriate that he would now be carefully examining whether you know this was a good use of Queensland taxpayers’ money,” Mr Fletcher said.

A spokesperson for Mr Husic said that “after more than 50 freedom of information submissions and two Senate Estimates hearings, Fletcher’s campaign against Australia’s quantum sector has revealed what we always knew – the PsiQuantum investment was subject to 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 government made its $2 billion decision on Moderna or their other decision to just back Silicon Quantum Computing.

“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.”

“Our investment in PsiQuantum will not only secure our sovereign and defence capability, it will supercharge our growing and globally renowned quantum sector while ensuring the home-grown talent that drives it have the career opportunities they need to remain in Australia.”