EVAN WALLACE, HOST: Earlier today we heard the South Australian government had forced the Whyalla Steelworks into administration and there's a strong connection. The South Australian Steelworks, they're owned by the GFG Alliance who has been in crisis after failing to pay tens of millions of dollars in royalty payments to the South Australian government and millions in unpaid bills to creditors. That company, it's owned by businessman Sanjeev Gupta, also owns what was the Hydro Energy powered Tasmanian Electro metallurgical company. You'll know it as Tempco Smelter in Bell Bay, now called Liberty Bell Bay. It's raised significant questions about the smelter's future. Senator Tim Ayres is the Federal Government Assistant Minister for Manufacturing. Senator, good afternoon.
SENATOR TIM AYRES, ASSISTANT MINISTER FOR A FUTURE MADE IN AUSTRALIA AND TRADE: G'day, Evan. Very good to talk to you and to talk to your listeners.
HOST: Now there are a lot of people in Bell Bay who are probably feeling very concerned. What's your message to them?
AYRES: Well, the South Australian government has acted today in relation to Whyalla. The business itself is a complex business. Peter Malinauskas was out today being very clear that he is acting in the interests of saving the Whyalla Steelworks and protecting the Australian steel industry. Obviously, the Commonwealth, the Federal government have been in close discussions with South Australia because this is an issue of national significance. You know, we are determined to protect manufacturing not just in Whyalla, but everywhere, in every industrial region around the country. Now, I've seen reporting that indicates that the Prime Minister will be in Whyalla tomorrow. I'm sure he'll have more to say then and there'll be more to say over the coming days. I don't want to deal specifically with any particular regional questions, although I understand that individuals will be very concerned. What I can say is the Albanese government is acting to protect the steel industry. We have the largest pro-manufacturing package in Australian history, and we'll be acting consistently with that.
HOST: Annie in Georgetown has messaged in and she said we don't want to be left in the dark and caught out with nowhere to turn if the jobs at Georgetown go. Are jobs at risk, Senator?
AYRES: Well, I absolutely support what Annie’s saying. 100%. And I have no information that suggests that jobs are at risk in Georgetown. But what I don't want to do in this situation is make comments about particular aspects of this very complex business. All I can say is Peter Malinauskas has acted in relation to Whyalla for the purpose of securing the future of the Whyalla steelworks. We are very closely engaged with that in a way that Tasmanians and Australians would expect. And we are acting in the interests of Australian manufacturing with a very clear focus on what that means for jobs in many different corners of industrial regions across Australia. Our steel industry is fundamental for our manufacturing future. Absolutely critical. That's why we acted so strongly in relation to aluminium. I think we were talking about this a couple of weeks ago.
HOST: We were, we were talking about that green credit that was available there.
AYRES: That's right. That's why we've acted so clearly and decisively there. That's why we have a $22.7 billion package which is in part is in relation to steel and iron and iron processing in Australia. And Tasmanians and Australians can expect that we'll act absolutely consistent with those objectives in the interests of industrial jobs.
HOST. So, Senator, just to be clear, are we expecting an announcement tomorrow from the Prime Minister about the future of Whyalla and more broadly on aluminium and steel in Australia?
AYRES: Well, the Prime Minister will be no doubt dealing with these issues shortly. I saw reporting that indicated that he's in Whyalla tomorrow. But we are absolutely focused on these issues, I can assure you. And we are for manufacturing. I have to say, the alternative is Peter Dutton's plan which is to reduce the size of the manufacturing sector and reduce energy intensive manufacturing in Australia. That's core to their nuclear reactor plan is forcing energy intensive manufacturing offshore. We are for not just protecting the existing industry in every corner of the country, but also extending the reach of manufacturing and re industrialising our regions.
HOST: I'm chatting with Tim Ayres who is Australia's Assistant Minister for Manufacturing. Senator, President Trump last week said he would be introducing steel and aluminium tariffs. I know that there's a possible exemption for Australia on the cards, but it's clearly a precarious time for industry.
AYRES: Well, it certainly - this is why we've been working so hard on the broader Future Made in Australia agenda and the Industry Minister on the National Reconstruction Fund agenda and the broader industrial agenda. All about securing the future of Australian manufacturing. Because if we just do what happened over the last lost 10 years of the Abbott/Turnbull/Dutton Government where manufacturing jobs just flooded offshore, then we won't have manufacturing left to protect. We are a pro-manufacturing government. We're for good blue-collar jobs and engineering jobs and we want to see young kids who are leaving school having the option of a high-quality apprenticeship or a career in science or engineering because we've got a strong manufacturing sector. That's why we've got the biggest package of incentives that have ever been put on the table for manufacturing industry to produce locally here in Australia. That means good jobs, whether it's Northern Tasmania or the Hunter Valley or Central Queensland, our great industrial regions. We want to see your capabilities here in Northern Tasmania turn to good manufacturing jobs because it's in the interest of the region, but it's also, Evan, in the national interest. We want to build Australia's economic resilience, want to diversify our economy and protect - you know, we have seen over the course of the last few years a series of trade shocks that the government has dealt with in a systematic and calm way in the national interest. We are clearly focused as a result of that on diversifying Australia's industry and rebuilding our manufacturing capability as well as continuing to advocate over the kind of issues that you're raising with me.
HOST: You're in the northwest of the state at the moment with meetings with the Berry industry, Business Northwest, Clean Energy Tas. When I spoke with Business Northwest maybe about three, four weeks ago, they were concerned about our economic conditions in the northwest of the state, saying that business confidence is low. Something that they shared with you, Senator?
AYRES: Yeah, I had a really good discussion with Ian Jones and a good discussion, as you've indicated, with the Berry industry more broadly. I'm looking forward to more of that later on this afternoon. This is a part of Australia that has enormous economic potential, that has enormous industrial capability. But of course, like many parts of the country, we've seen investment retreat from those areas. That's why the government, you know, we are a government that has people like me who grew up in country Australia who know how important these jobs are for our future. And it's a core part of our building Australia's future focus. You know, right now, of course we're focused on business conditions now and getting inflation down for working families. But we've also got an eye on the future and doing the things that are required to deliver investment into these regions to deliver good quality jobs and mean that there is that investment. There are new factories and new investments and new good jobs and young people can look to staying in the region, getting an apprenticeship, getting a degree, getting a good quality manufacturing job and staying in the region because I think that's what Tasmanians want to see.
HOST: And finally, Tim, as yesterday's interest rate cut was welcome news for businesses and mortgagees. Millions of Australians were waiting for the cut with bated breath showing that people are really doing it very, very tough. Has the government done enough to pull all the levers it can to make life easier for Australians? Tim Ayres.
AYRES: We have done everything that's within our power. Remember when we took government, inflation was higher than 6% and rising. It's now sitting well within the Reserve Bank's target range. So, we've acted on inflation to 2 surplus budgets, all of the economic tools at our disposal, proper economic management. But we've also done the things that are there to support ordinary families, to keep the cost of living down. Now, it's very welcome news that interest rates have reduced in response to, as you saw, the Reserve Bank says, in response to falling inflation. We don't say mission accomplished or put a tick next to that. There is more work to do to support families and to make sure that we permanently, you know, that we win the fight against inflation. But you know, we are going to continue with the focus that we've been on, pushing real wages up, having the having the lowest unemployment average on record for 50 years, the highest number of new jobs, 1.1 million jobs in a first term government on record and inflation coming down and continuing to moderate. So, we've got the trifecta there, the right economic approach. But we recognise, of course, that many families are still struggling, and we are going to, we will not lose the focus on those questions. So, we're going to keep, keep the focus on wages. That's why we delivered tax cuts for every single working Australian and we want to continue that work. The alternative is, of course, Angus Taylor said yesterday interest rates have gone up, actually they've gone down.
HOST: Risk of heading into very much our campaign mode, it sounds as though those lines are being sharpened. I do appreciate your response and your analysis. Need to move things along. Nice chatting with you. That is the Federal Assistant Minister for Manufacturing, Tim Ayres.
ENDS.
