SABRA LANE, HOST: Today, the Federal Government is promising a $2 billion leg up for the four aluminium smelters operating across Australia to help them switch to reliable renewable energy sources by 2036. The plants are also in key electorates in Queensland, NSW, Victoria and Tasmania. Tim Ayres is the Assistant Minister for the Future Made in Australia. Tim Ayres, thanks for joining AM.

TIM AYRES, ASSISTANT MINISTER FOR A FUTURE MADE IN AUSTRALIA AND ASSISTANT MINISTER FOR TRADE: It's a pleasure to be here Sabra.

LANE: The government is providing $2 billion in tax credits over 10 years for these aluminium smelters. Exactly how will this work?

AYRES: It'll be a production credit. It's one of the Government's Future Made in Australia programmes. It'll provide support for every tonne of aluminium that is manufactured here in Australia. It's a critical support for this important value-added sector as it transitions to a lower carbon electricity. And it will support thousands of jobs, in particular in central Queensland, in the Hunter Valley and in Northern Tasmania.

LANE: Now, Rio Tinto, which owns or jointly owns three of these smelters, had previously warned that two of the smelters would close by 2030 if there wasn't additional taxpayer help. Has the company now guaranteed to the Government that they will remain open with this support or is it wanting more help?

AYRES: Well, this will do everything to support Australian manufacturing in aluminium. Of course, each of these companies still has to work through its power purchasing agreements. In each of the states there is still work to do. But these production credits guarantee the viability of the aluminium processing sector in Australia, meaning that we won't just be digging up bauxite in Australia and sending it offshore to be processed somewhere else, but we guarantee the ongoing viability of aluminium manufacturing here in Australia and then right across into the whole supply chain. We have the aluminium supply chain from bottom to top here in Australia. It's an important industrial capability and this announcement of a Future Made in Australia package for aluminium guarantees Australian manufacturing in each of those three critical regions.

LANE: Does it guarantee that they will remain open?

AYRES: It certainly provides the platform for ongoing competitiveness. It's absolutely consistent with those companies continuing to operate and providing thousands of good jobs in each of the regions. It goes in exactly the opposite direction to the Dutton opposition's plan for the aluminium sector, which in their own documents, Sabra says that the industry goes offshore under Peter Dutton's nuclear reactor plan.

LANE: Let's stick with this announcement for the moment. Some in the audience might think, hang on for a ticket, Rio Tinto, they make billions in profit each year. Why does it need Government help? Why can't it self-fund this transition?

AYRES: The aluminium industry is globally mobile. It is a highly competitive industry and as the industry moves from its existing electricity system, it's existing emissions intensive electricity, and moves towards where the global market is going, where 98% of our trading partners are demanding emissions free products, they require support to remain competitive and to ensure that they can make that transition effectively. There are two choices here for Australia. One is that we abandon local manufacturing in an environment where our global competitors are taking these kinds of steps to ensure that manufacturing occurs onshore in their countries. The alternative is the Future Made in Australia approach where we step up to the plate on the competitive questions and make sure that manufacturing's got a platform for investment in Australia.

LANE: Minister, you saw in 2024 many incumbent governments lose office around the world. How much of a struggle will it be to win another majority government for Labor this time?

AYRES: We don't take any election for granted but Australia is Australia. We have a policy platform that is all about building Australia's future, continuing to focus on those cost-of-living challenges where the government has made very significant progress. More work to do but very significant progress. The rate of inflation has fallen significantly since we took office. We have provided cost of living support, continue to do that and in this area of policy, the future of manufacturing. This is a government with the biggest pro-manufacturing package in Australian history. We are implementing steadily and the alternative for Australia is no cost-of-living support from Peter Dutton and the Liberals and Nationals and just leaving Australian manufacturing to continue to decline and costing good jobs in our regions and in our outer suburbs. It's a very stark choice for us Australians in 2025 and we're going to continue focusing on the issues that matter to ordinary Australians.

LANE: Tim Ayres, thanks for joining AM.

AYRES: Thanks Sabra.

ENDS.