Jim Chalmers handpicked Danielle Wood to be one of the most powerful figures in the Australian economy… But she’s got some bad news for him [Video]

00:57 EDT 23 Apr 2024, updated 02:13 EDT 23 Apr 2024

Treasurer Jim Chalmers has rejected as ‘rubbish’ the suggestion Labor’s Future Made in Australia policy will drive up inflation – after economists, including one he appointed to a powerful body, slammed the plan.

The federal government’s new multi-billion dollar program would direct taxpayer subsidies towards local manufacturers making products related to renewable energy.

Some critics of Labor’s proposed Future Made in Australia Act have argued that it’s a waste of taxpayer money that will drive up prices.

Meanwhile, Danielle Wood, the new head of the government’s Productivity Commission, fears that it would make firms reliant on handouts.

Dr Chalmers angrily rejected those suggestions on Monday.

‘There’s been a little bit of rubbish, I think, said and written about the potentially inflationary impact of a Future Made in Australia,’ he told reporters.