EO&E TRANSCRIPT
PRESS CONFERENCE
BOYNE ISLAND
WEDNESDAY, 22 JANUARY 2025

SUBJECTS: The Albanese Government’s record $2 billion investment in the Australian-made aluminium industry; Peter Dutton’s risky nuclear plan; Australia Day.

MATT BURNETT, GLADSTONE REGIONAL COUNCIL MAYOR: Look it is fantastic again to welcome Senator Murray Watt and, of course, Assistant Minister Tim Ayres back to the Gladstone region. We’re supported, of course, by our Member for Gladstone, Glenn Butcher, for this amazing announcement for Gladstone, $2 billion for the aluminium industry. And of course, that supports our local alumina industry as well. More than 3000 jobs across the Gladstone region will benefit from this announcement from the Federal Government today, over 1000 jobs here at Boyne Smelter alone will be supported by that. What that means is locals in the Gladstone region can know that they've got jobs for the future. We're very excited. Could not be more excited, $2 billion is not a small announcement. It's a massive announcement. And it's also not just good for Gladstone, it's good for the aluminium industry right across Australia. I might hand over to Tim and to Murray and to Glenn to say a few words about this amazing announcement, as I said, from the Federal Government, securing those local jobs right here in Gladstone. Thanks Tim.

TIM AYRES, ASSISTANT MINISTER FOR A FUTURE MADE IN AUSTRALIA: Well, this is a facility that sits at the heart of Queensland industry. It is an anchor industrial tenant for Gladstone, 1000 direct jobs, 3000 indirect jobs here in Central Queensland. This facility is the beating heart of Queensland manufacturing. The announcement that the Prime Minister and the Minister for Industry made in Tomago this week of a $2 billion aluminium fund that will secure the support of Australian aluminium processing as we navigate a very tough global environment for aluminium. This announcement, part of our broader Future Made in Australia package, secures good blue collar jobs in Central Queensland, Hunter Valley, Bell Bay in Tasmania, and Portland in Victoria. It's part of our overall $22.7 billion Future Made in Australia package. The Albanese Government unequivocally standing behind blue collar manufacturing workers right now in our economy, but also fighting for the blue collar manufacturing good jobs of the future, which will be in our outer suburbs and our big regional economies like Central Queensland. This announcement is an absolute game changer for manufacturing, an absolute game changer for the aluminium sector. We reflect on where we were three years ago, smelters like this one anxious about the future, uncertainty about their prospects on the back of 10 years of energy policy uncertainty frozen in time, these assets can now look to the future with confidence. That means, for many of them, new investments. That means for each of these four aluminium processing facilities that they can look to the future with confidence. And that is good for jobs, good for good jobs in regions like Central Queensland, I might hand it over to Murray Watt, and then I'm happy to take some questions about some of the details. Thanks.

MURRAY WATT, MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS: Well, thanks very much, Tim. And thanks to Matt and Glenn for joining us here today for a really big announcement that is all about securing blue collar jobs in heavy industry in communities like Gladstone for decades to come. Thank you also to the team here at Rio Tinto, who've hosted our visit today. We're always keen to get onto these kind of sites that are producing high quality products for the world, but also, of course, providing high paid, secure jobs for local communities like here in Gladstone. As Tim has said to you, the announcement from the Prime Minister this week that we will provide $2 billion in production credits for aluminium smelters right around the country is critical to securing the thousands of jobs that the aluminium industry produces in Central Queensland and right across Queensland. One of the things I've learned having spent a fair bit of time in Gladstone over the years is that as important as these 1000 or so jobs at Boyne Smelter are to the local economy, there are thousands more jobs created in manufacturing workshops right around Gladstone and right around regional Queensland that supply to this facility and other facilities like it. So, this is a huge vote of confidence from the Albanese Government in the aluminium industry and all of the manufacturing jobs that hang off it and guarantees their future in an uncertain world. What we're seeing all around the world in the aluminium industry is that other countries are moving towards greener methods of producing the electricity that the aluminium industry relies upon, and if we don't make that move towards greener sources of power, we will see jobs in aluminium disappear from Australia. Now I've already seen that Peter Dutton, the Opposition Leader, has jumped out of the blocks as he always does with negativity. And Peter Dutton has said that he will oppose this plan from Labor to invest $2 billion in the aluminium industry, just as he says that he opposes our entire Future Made in Australia agenda, which is revitalising manufacturing right across regional Queensland and right across the country. Now, I guess that's no surprise to see that position from Peter Dutton, because let's remember that he was part of a government that chased the car industry out of Australia. They closed the car industry down when they were in power last time round. And what he has said, by saying that he will oppose Labor's aluminium plan is that he's prepared to chase aluminium jobs out of Australia, just like he previously chased car industry jobs out as well. This is a bloke who talks the talk about blue collar jobs, but he never walks the walk. He's never prepared to do anything to invest in the skills in the people who've manufacturing employees. Well, Labor's different, Anthony Albanese is different. We're going to invest in these facilities, and we're going to make sure they're here, producing good jobs for decades to come. I'll hand over now to Glenn Butcher, the State Member, and then we've also got Craig Sell here, who's the local organiser for the Australian Workers Union, who, of course, cover many people working in the aluminium industry. Thank you.

GLENN BUTCHER, MEMBER FOR GLADSTONE: Thanks, Murray. And as many people know in Central Queensland, I worked for 21 years in the aluminium industry in Gladstone, so I know how important the manufacturing of not only aluminium, but the aluminium industry in Gladstone is to the people of this community. When people ask me about the risks associated with these type of industries and these big manufacturing industries, I always tell them the only risk that I know with aluminium and the aluminium industry in Gladstone is an LNP Government. And this federal election is going to be critical for the workers at the Boyne Smelter, Rio Tinto Yarwun, and also Queensland Alumina. And the fact that Peter Dutton has already stood up and said he will not support the $2 billion going to help organisations like Rio Tinto transform what they do in the way that they make aluminium and alumina here in the Gladstone region, the people of Gladstone and Boyne Tannum should be shivering in their boots at the thought of an LNP Coalition getting into Government. I think it's really, really important that the people of Central Queensland know just how important this is for these communities. Could you imagine the loss of 3000 jobs in the Gladstone community if this facility was to shut down? I think it's really important that we take note of that with a Labor Government, not only the Federal Labor Government committing this $2 billion for infrastructure support programs to make sure that we can transition into the renewables that they need to keep the industry going. But also, the Queensland Labor Government when we're in government put in a price guarantee for energy for this facility as well. So, under a Labor Government, the workers in the industry here in Gladstone should be proud of what a Labor Government has done for them in this region.

JOURNALIST: Tim, the industry has been investing in renewable energy for a while now. So why have you felt you had to make this move now?

TIM AYRES: There is no question that each of the aluminium facilities in Australia has been working hard to secure zero emissions, or close to zero emissions, electricity sources for their facility and facilities all around Australia will be engaging in that work. The question is, will they be going to clean energy in Australia, or will they be doing it offshore? And what this package does is secure aluminium processing in Australia and work with them in a collaborative way between the government and the firms to secure the best outcome for local workers and to secure local production here in Australia. We are entering a world where Australia can't take anything for granted. The Albanese Government is absolutely determined to make sure that blue collar workers, particularly in our great industrial regions like Central Queensland, win more jobs, more investment, and more security, and this $2 billion commitment stands right behind that.

JOURNALIST: Can you give me an example of how it would work?

TIM AYRES: Yeah, so this this fund commences in 2028, so between now and 2028 we'll be engaged in discussions with each of the aluminium processing facilities, because each of them have different production constraints, operate in a different investment environment, and the ultimate result of that will be a dollar amount in this production credit that is paid to each aluminium smelter per ton of aluminium produced. So, it is a no regrets industry policy measure that is payment on results, not grants like the last Government, where grants would be tipped out the door and you would hope that you'd get a result. This is a payment by results no regrets measure that rewards manufacturing here in Australia.

JOURNALIST: 100% green energy?

TIM AYRES: Notice when I when I was talking earlier, I said zero emissions or close to zero emissions. Each of these companies is engaged in a really full-throated way. This facility in negotiating power purchasing agreements out there that deliver zero emissions or close to zero emissions electricity power purchasing agreements. They are fully engaged in that for all of the reasons, but principally because they want to be able to sell their product into the global market. And consumers around the world are demanding clean, green, aluminium products around the world, and there will be a premium for companies that can compete for green aluminium. This puts them at the top table. This puts Australian aluminium at the top table for the best prices and the most competitive position. It's an unashamedly pro-manufacturing, pro-blue collar worker position from the Albanese Government.

JOURNALIST: Are we keeping our green energy affordable enough?

TIM AYRES: What's very clear is that companies out there are engaging in a commercial way to secure the best prices with renewable energy and energy more broadly. This is in the interests of their workforce and the interests of their community positions. They are not naive. They are engaging in a tough commercial way in the electricity market. I am concerned. I have to say that while we are pushing in one direction to secure manufacturing jobs here in Queensland, that Peter Dutton and the Liberals and Nationals are going in the other direction. It's a big no from Peter Dutton to Future Made in Australia more broadly, and manufacturing in Australia. It's a big no to the $2 billion announcement that we made this week, the Prime Minister made this week, to back in Australian aluminium manufacturing. Peter Dutton's nuclear plan itself, his nuclear reactor plan, which would impose a nuclear reactor here in Gladstone, whether people like it or not, is actually predicated on forcing electricity intensive manufacturing offshore. So, there is no clear example than here in Gladstone, where a nuclear reactor, a risky plan for a nuclear reactor that would employ almost no one, would displace a facility like this that directly and indirectly employs 3000 workers. It's dangerous. It's risky. It's poorly thought through. I have to say, while I'm on my feet, I am concerned about the decision that the Queensland Government has made to pull in a range of these renewable projects. They will have to work through their own processes. But it's very important that nothing happens to undermine the security and the commercial decisions that firms like Rio Tinto have made on the basis of electricity contracts that they are negotiating with these providers that are in the interests of all of the workers here. I've seen that decision. I'm concerned about it. I'm waiting to see more information. A 120-day delay is not in the interest of certainty, not in the interests of manufacturing.

JOURNALIST: Yeah. I just wanted to clarify something. That payment by results that you were speaking about earlier. Is there any restriction on what smelters can sort of use that payment for?

TIM AYRES: Well, it'll be a payment that is a payment per ton of aluminium that is manufactured here in Australia. It will be a payment that will continue for 10 years from commencement. There will be, of course, commercial negotiations between the Government and each of the aluminium producers. And I don't want to say anything that prejudices those negotiations, but it's a $2 billion, 10-year package that operates in 2028 and is predicated upon supporting Australian aluminium manufacturing as they go through this process.

JOURNALIST: Murray Watt, do you support changing the Australia Day date?

MURRAY WATT: No, I don't, and nor does the Government. The Government's policy is that Australia Day will remain in place. We recognise that there's different views about this, but the Government absolutely has no intention of changing the date of Australia Day. I notice that every January you can set your clock by Peter Dutton wanting to start the Australia Day culture war. We just need to remember that every day Peter Dutton is talking about things like Australia Day is another day that he's not talking about his plan to cut wages, to remove cost of living support and to cut the public service and the services it provides. That's what Peter Dutton is up to here. The Government has no plan to change Australia Day.

CRAIG SELL, AUSTRALIAN WORKERS UNION: The AWU welcomes this funding announcement from the Albanese Government. The AWU has and always will advocate and campaign for aluminium workers in Australia. These aluminium workers produce a world class product. This funding announcement should enable them to continue doing that in a more sustainable way. Again, we welcome this announcement. We see Australia benefiting and Australian workers benefitting.

JOURNALIST: Remind me again, how many workers here in Gladstone?

MATT BURNETT: So, you have about 1100 employees here at BSL, and over 300 contractors. There's almost 1000 at Rio Tinto Yarwun and over 1000, about 1100 at QAL, and as Murray said, so many contractors. Our contractors in the Gladstone region, supported by the Gladstone Engineering Alliance, provide those services, that supply chain to industry here. And of course, when you look at it from a Queensland point of view, this is Weipa jobs, this is Gladstone jobs, jobs in aluminium, jobs in the alumina industry as well. But it's also not just jobs in Gladstone in Queensland, jobs in the aluminium industry right across the country. But we're pretty proud about this. This is jobs for my friends and my family here in Gladstone, and we're pretty happy to see this announcement. I'm sure everyone in Gladstone is happy to see it as well. No one in Gladstone knows does not know someone who works with Rio Tinto, or an industry - everyone knows. Let me rephrase that, everyone knows someone who works for industry in Gladstone, and particularly at Rio Tinto. So, this is a big win for Gladstone, let me tell you.

JOURNALIST: Matt, the underlying threat of losing jobs because of the high cost of electricity has been around for a while. I know they've invested in Gladstone. And are you confident its going to go, because you’ve been worried about this for some time?

MATT BURNETT: Oh, absolutely. We've seen the full production line here at Boyne Smelter hasn't been operational for a while, and what we want to see is that operational again. We want to see aluminium increased in production here in Boyne Smelter, and also supported by the alumina here from QAL which comes right here to the Boyne Smelter, it provides those jobs and this amazing alumina and aluminium industry in Gladstone and Queensland. We're so proud of this industry here and the jobs it provides. But, you know, they obviously need energy support, and they're getting that, and they need this $2 billion fund, which will allow them to continue, obviously, into the future. And I actually call on the Opposition to match it today, match this fund for Gladstone, match this fund for Central Queensland and support the aluminium industry in Australia.

ENDS