RICHARD KING, HOST: My next guest, I know likes beer because he's got a posting up on his social media where he's downing a schooner in very rapid time. And that's NSW Senator Tim Ayres, who's the Assistant Minister for Trade and a Future Made in Australia and he is on the line. Good morning, Tim. Hello.
SENATOR TIM AYRES, ASSISTANT MINISTER FOR A FUTURE MADE IN AUSTRALIA AND ASSISTANT MINISTER FOR TRADE: There you are. There you are. I was playing Tom T. Hall for my office the other day. I don't think the young people know who Tom T. Hall is.
HOST: Oh, it's a good song, though. Look, you put that up re the excise, but I hope that was an Australian beer that you were chuggalugging there, Tim.
SENATOR AYRES: It was a Bob Hawke Lager. And look, Richard, I'll let you and your listeners know the facts here. I had to slow the video down just so people could see.
HOST: Well, we were impressed. It went down very quickly, Tim.
SENATOR AYRES: Well, I was very enthusiastic about an initiative—there's a couple of initiatives here that are important for the brewing industry and the spirits and wine industry more broadly. We've frozen excise for two years. That's going to make a big difference. I know it means that prices won't continue to rise because of government excise. Just a little bit of relief for the sector and for beer drinkers. And we've made some changes to the thresholds for the small brewers and small distillers and wineries that'll go straight onto their bottom line. There are 400 distillers around Australia, most of them in regional Australia. They're really important. I was in Newcastle last night at Nioka Bar. They are an important business in Newcastle and at the Barrington Tops. It's a really important part of value-added Australian food and beverage sector. And we're really, really happy we've been able to take some initiatives to back them in. And good for beer drinkers too.
HOST: Well, look, I paid $10.60 for a schooner of Mountain Culture last night at Maryville Tavern and I thought, wow.
SENATOR AYRES: It’ll give you a heart attack. Honestly. I remember $1.20 schooners at the Camperdown Bowling Club. It was the last time I was paying attention.
HOST: Right. Now, the purpose of the visit. You were here last night and gave a speech at an event at Newcastle University. What was it all about? What was the purpose of the speech last night?
SENATOR AYRES: Well, the speech is this morning, Richard, it is at an event that Hunter Business have convened of manufacturing and engineering businesses here in the Hunter. I've been a regular visitor to the Hunter as a Senator, as an Assistant Minister, but of course, in the decades before that, as a manufacturing union official. And it's really good, I think, now, to come back just on the eve of our Federal Election to account for what has been achieved so far by the Albanese Government in our Future Made in Australia and our broader pro-manufacturing strategy to talk about what more needs to be done. And of course, this is absolutely contested space. We have got the biggest pro-manufacturing package in Australian history, but our political opponents are opposed to it and say that it's wasteful spending because we're backing blue-collar manufacturing jobs. And so, this is going to be a crucial election issue for the future of the Hunter Valley economy and I'm very happy to have an opportunity to talk to businesses about what that means for them. It's good to be welcomed back and good to be part of the Hunter Valley economic discussion.
HOST: Well, tariffs are the hot topic at the moment for good reason. The 25% tariffs imposed on Australian steel and aluminium exports to the United States. I know when this was first mooted earlier in the year, Bluescope came out and said, well, look, this is not going to kill our company, but we do employ a lot of people over in the United States. So, I think everybody's a bit cheesed off. But what sort of an impact do you think it will have? Well, and of course, we've got, we've got a massive aluminium producer here as well in the Hunter Valley. What impact do you think it will have on aluminium and steel production here in Australia?
SENATOR AYRES: Well, I don't want to understate it or overstate it, Richard. It's obviously significant in terms of the issue itself. That is, it'll have some impact on those businesses. It is 0.18% of Australia's trade volumes. So, it's not at scale the same as some of the other trade challenges the Government has dealt with during our time in office. However, it is a very clear signpost along the way about two things. One is the direction that the new Trump administration is taking about protectionism and trade and tariffs. Now, we disagree with them and we're going to continue making the case, but there are other decisions that the United States administration has got coming up. So, we have a bumpy road ahead of us on the bilateral trade relationship with the United States. But secondly, it's a sign that the global trade environment is under real pressure. And that is why we have to do two things. I heard your introduction, Angus Taylor sounded surprised by all these developments. We've had them very clearly in focus from well before we were elected. Firstly, we have to focus on market access for Australian exporters and Australian businesses, because that's who employs Australian workers. But we also must diversify the Australian economy and rebuild our manufacturing capability in key areas. And that's what the Future Made in Australia agenda is about. I'm bitterly disappointed that the Opposition hasn't got the memo on these questions, that Peter Dutton is still opposed. Our $22.7 billion Future Made in Australia package is all about making the Australian economy more resilient to these kind of trade shocks. And the beneficiaries of that will be regional economies like the Hunter.
HOST: Ok, look, I've already had people ringing this morning saying that your government should have done more, that the Prime Minister should have been on the blower to Donald Trump, he should have flown over there, he should have done this, he should have done that. And the Opposition are saying that your government's let Australia down after failing to secure an exemption. Do you think it was ever possible to get an exemption?
SENATOR AYRES: Well, we're going to keep working hard to secure an exemption. Remember last time it took nine months. This happened under the Turnbull Government. A very different scenario in Washington, I have to add. It's very clear that the Americans have come out and said that they believe exemptions were a mistake last time around. So it's a higher hill to climb to secure exemptions. We'll keep pursuing that. But I think what underlines those kind of observations— Peter Dutton and his lieutenants have been out, you know, sowing the seeds of discord on this question. Right. So, you could never do enough for these characters. If the Government goes left on a question, they say you should go right. If we go right on a question, they say we should go left. It's a sort of constant undermining of the Australian team's efforts in this area. We are on the side of Australians. Peter Dutton, there is no problem where he doesn't see it as an opportunity for partisanship and conflict.
HOST: People are saying there's now an issue with AUKUS, with all these trade tensions. Do you think that we should be reassessing the AUKUS agreement?
SENATOR AYRES: No, I don't. I am very confident, the Government is very confident that this is the right call for Australia, that we as a country live in a region that is increasingly the focus of geopolitical competition, and that Australia needs this capability. Remember, AUKUS goes to both nuclear powered, conventionally armed submarines and to Pillar 2, which is all about the other technologies. There is a very strong mutual strategic interest between the United States and Australia, and we will continue to pursue that. There is a difference here over trade. It is an important difference, but it is not the difference that defines the relationship. You will have seen over the last few weeks, two conversations between the Prime Minister and the President. The Foreign Minister, for the first time ever, an Australian Foreign Minister was invited to the inauguration of President Trump. Our Defence Minister was the first Defence Minister to meet with the new US Defence Secretary, Pete Hegseth in Washington. The Treasurer led a massive Australian business and finance delegation over to the United States. We have had intensive dialogue across all areas of our joint interests, and we'll continue to pursue that. But it's an important difference over trade. And, you know, we'll focus on this immediate bilateral challenge. We'll work with partners around the world to strengthen the trade system and make it more resilient. But in my area of activity, Richard, the key thing here is to make the Australian economy more resilient and diversify not just the export markets that we export into, I agree with Angus Taylor on at least that, but where I part company with Angus Taylor and Peter Dutton on these questions is that must involve diversifying the products and services that we offer the world. And that means going up the value chain and more manufactured goods. And you can't do that by just telling industry to pull its socks up. We have to do it by working in partnership. The $2 billion package that we delivered for the aluminium sector secures the future of Tomago Aluminium in the Hunter Valley, 5,000 jobs. Central Queensland, Gladstone, same deal. We're putting our money where our mouth is and working in partnership with big industry.
HOST: Good. That's your focus, job wise and recreation wise your focus tomorrow is going to be on your beloved Rabbitohs. I think you're taking on the Dragons tomorrow. Good luck. Good luck with that.
SENATOR AYRES: No, thank you. Thank you very much. We'll need all the luck we can get. It was a tough, it was a terrific first game for the Rabbitoh's.
HOST: But what about the Knights last night, though Tim?
SENATOR AYRES: I drove past the stadium, and I really thought very hard about a late night at the stadium. I didn't go and watch it, but it was an absolute ripper and well done to all those Knights fans out there, my second team.
HOST: Appreciate your time this morning and enjoy your time. And good luck with the speech at Newcastle Uni this morning, Tim.
SENATOR AYRES: Thanks, Richard. Talk to you soon.
ENDS.
