Albanese defends $1b start-up bet as Queensland support wavers

Prime Minister Anthony Albanese has defended his government’s $470 quantum computing bet as the project hangs in the balance following Queensland’s decision to review 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.

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.

Albanese said his government’s vision was to position Australia at the forefront of the technology. “There is a first mover advantage in areas such as this and Australia cannot afford to sit back and watch other countries get ahead,” he said on Tuesday.

“We went through an extraordinary amount of diligence before this announcement”.

Opposition Leader Peter Dutton backed the LNP move and cast the former Queensland Labor government as reckless.

“If taxpayers’ money is being wasted, I am against it,” he said, noting concerns about Labor-aligned lobbyists advocating for the project to get off the ground.