This report highlights the pivotal role public financing can play in shaping a more resilient, competitive v economy. It focuses on the challenge of local manufacturing and outlines policy opportunities for public investments that could drive long-term economic growth.

The NSW Government has committed to ‘rebuilding manufacturing’ to help support sovereign capability and generate more good jobs, particularly throughout the supply chain. Manufacturing provides a valuable case study of the potential role for NSW public finance. It will require a significant whole-of-government effort, including procurement, to rebuild NSW manufacturing back to 10 per cent.

Significant investment will be needed to support this transformation. However, private finance may not step in straight away due to the long-term development cycle, capital-intensive nature, and perceptions of risk. 

Policy opportunities

1. Endorse public finance for NSW.
2. Outline principles of public value for public finance.
3. Consider deploying a suite of public financing tools to build NSW manufacturing.
4. Establish a NSW public investment fund to drive public finance towards NSW missions