Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, President, and congratulations on your re-election. My question is to the Minister for Industry and Innovation, none other than Senator Ayres. Many Australian smelters are in negotiations with the Commonwealth state governments about their future. Can the minister update the Senate on these negotiations?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Thank you, and I'd add my congratulations, President, on your re-election. There are indeed several industrial smelters around Australia that are facing significant challenges. From the first day of my appointment, I have been very focused on working through the challenges at each of these facilities with a view to Australia's national interest. They include the Whyalla steelworks, of course, Tomago Aluminium, the old Mount Isa Mines facility—which is currently operated by Glencore—Nyrstar's Port Pirie and Hobart smelters, and the Liberty Bell Bay manganese smelter. They all face different markets, different cost pressures and distinct challenges at each site. But they do have some things in common: they all add value to Australian minerals to turn them into Australian metals to strengthen our economic resilience and to create good jobs in regional Australian communities.

Think of Liberty Bell Bay. Manganese ore mined from Groote Eylandt in the far north is shipped south, where a smelter powered by clean hydropower turns it into ferromanganese and silicomanganese. From there, it goes into steel made everywhere from Port Kembla to the United States. It's a historically profitable operation with strong medium- to long-term prospects. Each of these smelters are facing industrial and mining subsidies and non-market practices in global trade. It's a challenge that has been faced by many of our partner economies.

I will have more to say over coming months on our national approach to developing Australia's industrial capability, but I do want to make a few observations about the Albanese Labor government's response—probably in response to your supplementary question, Senator Sterle.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, first supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

I reckon you can, Minister. Can you provide further details about the causes of the challenges facing the smelting sector? What is the Albanese Labor government doing to address these and why is the government taking this approach?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Well, as we all know—

Sue Lines (President) Share this | Link to this | Hansard source

Just a moment. It's lovely that you are so keen to answer, but please wait for the call. Minister Ayres.

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

I am—as you know, President—always enthusiastic and, of course, in my first answer I am learning how many words it is I can fit into a two-minute response. Indeed, time is rapidly drifting away on this one.

Murray Watt (Queensland, Australian Labor Party, Minister for the Environment and Water) Share this | Link to this | Hansard source

Thank God there's a time limit.

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

'Thank God there's a time limit,' Senator Watt says. The Whyalla intervention demonstrated that effective action coordinated between federal and state governments and focused on the national interest delivers a long-term pathway for industry. Firms in this sector should learn the right lessons from that intervention. They should expect me and the government to act, consistent with our broader Future Made in Australia national interest framework, to protect domestic capabilities that are in the national interest. That is not a blank cheque. I will be respectful of firms that operate these facilities, but I expect firms to deliver investment, sound business practices and good governance.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, second supplementary?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

This is so exciting. Beyond short-term challenges, can the minister explain the Albanese Labor government's Future Made in Australia vision for the smelting sector in Australia? How will the government ensure it delivers for the Australian people and the economy?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

The smelting sector is a pathway to our vision for a future made in Australia—a more resilient, prosperous economy where all Australians, particularly Australians in our regions and outer suburbs, can get good jobs. In August, I will convene a metals- and minerals-processing roundtable in the lead-up to the productivity roundtable to discuss how smelting can drive long-term investment and productivity growth.

The opportunity is clear. We have the world's best renewable and mineral resources. This gives us a strong, comparative and competitive advantage—particularly related to our renewable energy advantage, producing green iron and green aluminium in the national interest to deliver good jobs and economic prosperity. That is why the previous government and this government will continue on this trajectory, making investments like the $2 billion green aluminium production credit, opposed by those opposite— (Time expired)

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

President, I ask that further questions be placed on the Notice Paper.