Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question—

Hon. Senators:

Honourable senators interjecting—

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

Order! I'm sorry, please resume your seat. Order on my right. Senator Canavan has the right to ask his question in silence. Please start again.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Thank you, Madam President. I'm glad I inspire such a reaction. My question is to the Minister for Industry and Innovation, Senator Ayres. There were reports this morning that the Tomago aluminium smelter, which supports around a thousand jobs in your home state of New South Wales, is looking at potential closure. Tomago CEO, Jerome Dozol, laid the blame on energy costs, saying, 'Unfortunately all market proposals received so far show future energy prices are not commercially viable …' The government says that renewable energy is cheaper and it says that it is building lots of renewables for the future. If that is the case, why can't Tomago get an energy price in the future that is affordable?

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

I can confirm that, this morning, management at the Tomago facility began a process of consulting with around 1,400 workers at that facility about the potential for that facility to close in 2028. Having had some experience with these kinds of events, I can tell you that this is a very difficult day, indeed, and there are going to be challenging days, weeks and months—

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Link to this | Hansard source

Are you going to take any responsibility for that?

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

What I wouldn't do, Senator Ruston, is disrespect workers who are having a tough day in Tomago with the sort of hyperpartisanship that your show are engaged in. If you—

Opposition senators interjecting—

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

Order! I sat Senator Canavan down and gave him the privilege of starting his question again because there was too much noise on the right. I demanded that his question be heard in silence. The same applies to those of you on the left. The minister is responding to the question, and I ask for silence.

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

Of course, as you would imagine, this government has been engaged in discussions with the government of New South Wales, the owners of that facility and the trade unions engaged in that facility over the future of that facility for some time. We will continue that over the coming weeks and months as we work with that facility.

It's also the case that, more broadly across the aluminium sector in Queensland and Tasmania, facilities owned by Rio Tinto, a part owner of the Tomago facility, are working through their future power-purchasing agreements. In Queensland, the Gladstone facility has been successfully engaged in investment and underwriting solar and wind projects. I'm grateful for the assistance of the government of Queensland in supporting that work. There is competition— (Time expired)

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

Senator Canavan, a first supplementary?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, last week the CEO of Jamestrong, who are a metals manufacturing place in Taree, also in my home state, said:

The annual power price for our factory has almost doubled in four years.

He said:

We are decommissioning our baseload power of coal and gas, we are going to renewables and the cost is spiking.

That is what he said. This is a business owner. He's on the front line. Minister, if renewable energy is cheaper, why is it causing the cost of energy to spike for New South Wales manufacturing businesses? (Time expired)

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

Senator Canavan, you moved off the situation at Tomago pretty quickly, because the facts at that facility don't support your argument. I would have thought that he would give it a few minutes for workers to adjust to this. But he's like a koala returning to his favourite tree.

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

Senator Canavan, you don't need to call out. I did notice you are standing, and I will come to you.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

It's a point of order on relevance. Both questions have been about, if renewable energy is cheaper, why the cost of energy is going up. The minister is not going anywhere near dealing with that question. That's the crucial question.

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

It's happening everywhere. Jobs are being lost everywhere and you're playing politics.

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

Senator McKenzie, come to order! I will draw the minister back to the first supplementary.

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

On that part of the question you referred to, Rio and the owners have been very clear in their public statements that there is neither the coal-fired nor renewable electricity that they are seeking in the market at the moment. That has been their statement. There is a competition for green energy in the future from these companies. That is what is— (Time expired)

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

Senator Canavan, a second supplementary?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Minister, if you can't guarantee lower energy prices for Australian factories, how are we going to help deliver the critical minerals and rare earths to secure industrial supply chains in the free world?

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

The evidence is very clear. There are two trajectories—

Opposition Senators:

Opposition senators interjecting—

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

If you don't want to listen, Senator Canavan—spark up, Sparky! It's impossible to engage seriously with this kind of behaviour, this kind of hyperpartisanship and this kind of imported ideology. It's impossible to engage with it. The truth is there are two trajectories. There is an orderly process of modernising our electricity system, and that requires work, policy consistency and policy certainty. There's a disorderly approach, authored by your colleague Mr Taylor, that banked on industry being forced offshore. Your nuclear plan banked on forcing industry offshore. (Time expired)