Chris Minns: Well, we're definitely going to put money into saving [Tomago] and we've committed to doing that. We want to make sure that we've got funds available from NSW taxpayers to keep this important industry up and running. We want to work with the Federal Government but as it stands today, I don't know how much they're asking for.

RICHARD KING, HOST: Chris Minns, yeah, we're going to help keep it going but we don't know what the Federal Government wants in terms of this keeping the Tomago aluminium smelter going. Interesting too, because Lake Macquarie MP and Independent State MP Greg Piper claims the State Government won't be able to meet the Commonwealth's commitment to the Tomago aluminium smelter. And with more on that, joining me now is our Federal Industry Minister who will be in Newcastle today to address a business luncheon. Tim Ayres is on the line. Good morning, Tim.

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: G' day, Richard. Good to be on the show.

HOST: Yeah, nice to have you back on the show. Yeah, look, we just heard from Chris Minns saying that we want to keep Tomago going but we don't know how much the Federal Government wants. And then Greg Piper has said that, well, Greg Piper believes this 50:50 split is an unreasonable request and that the State Government can't afford it. What is the latest on the future of Tomago, Tim?

AYRES: Well, just maybe two answers if I can, Richard. The first, of course, this is a complex undertaking of real scale. The Albanese Government, we're continuing to work through with Snowy Hydro, a power purchasing agreement that delivers competitive electricity, new generation. So, that'll put downward pressure on electricity prices for everybody in NSW. We are continuing to work that through, working with our partners in the NSW Government and with Rio Tinto and the other owners of this facility. This is a top order priority. It is of industrial significance. It is very important for the Hunter Valley economy. But there is an enormous opportunity here to use this major facility that uses so much of our electricity to drive new investment, to drive the rebuild of our electricity system. 

Now go across the Tweed and have a look at what's happened in Queensland. $1 billion investment from the Albanese Government, $1 billion from the Crisafulli Government has led to $7.5 billion of investment in new electricity generation and transmission in Queensland. Driving down prices, bringing forward generation projects, making the Queensland economy more competitive and more productive. And it means that there is investment in Central Queensland in an important industrial region in Central Queensland. As far as the eye can see. In apprenticeships, in new plant and equipment, and certainty about the future of that facility. This is in Queensland. A very, very good deal for Queensland and for Australia. And that's what we want to do again here in the Hunter.

HOST: Okay, so that's where you want a 50:50 split with the NSW Government. Is that what you're after? The same as in Queensland?

AYRES: Of course it's a shared obligation here. Now I understand, of course there will be the normal to and fro of the negotiation between Commonwealth and State. I won't be participating that in a public kind of way. It's a shared approach. It's a shared approach that we took with the Crisafulli Government too in the Mount Isa copper smelter. In the Whyalla Steelworks, with the Malinauskas Government in South Australia. It's a reasonable expectation that State Governments – smaller ones than NSW – are contributing equally here. 

Now we are bringing a lot to the table in these discussions. Not just in terms of the support for Tomago, but the capital support for expansion, new generation and new transmission capability. But we'll do those discussions quietly and carefully and effectively. It's not, it's, you know, it doesn't assist them to be up and about on those issues on the radio. We'll work through it carefully. But it's in the interests of the Hunter. It's in the interest of a more competitive industrialised NSW economy. And of course it's in the national interest. So, we should share in the cost.

HOST: Well, it seems to be smelters around the country. Down in Tasmania. You mentioned Whyalla. There's the one at the lead and zinc smelter as well. And it would appear that, you know, the Governments are bailing all these people out. And I had an email from Peter earlier this morning who said all smelters around Australia are becoming unviable because of excessive cost of energy and the prospect of dependence on an unreliable supply. But, but isn't a lot of the problem here the fact that there hasn't been a great deal of maintenance on these smelters? And it's a bit like the coal-fired power stations. When Governments decided to sell them off, they couldn't be bothered keeping them up to scratch. Is that the case with these smelters as well, Tim?

AYRES: Of course, the truth is always more complicated in the coal power stations, particularly in NSW, that they are moving either beyond or towards the end of their possible life. That means they're becoming more and more unreliable and there's unplanned outages every day of the week, like literally every day of the week. And that is what is driving up costs like those power stations are the problem that we're trying to manage today, not the solution for tomorrow. And in the smelters themselves, what they are facing is a chaotic global market where some countries are subsidising and putting up trade barriers in order to concentrate smelting activity in their own economies. We can't have this kind of loser narrative, this talking Australia down. We're in Australian Made Week. These smelters are viable. They have enormous industrial capacity. We should have confidence in them.

HOST: Right, okay.

AYRES: The Tomago smelter is Australia's youngest and largest aluminium smelter. It's not the only one, but it's our youngest and our largest. What we need to do is to deliver competitive electricity prices. That means more investment not sitting on our hands, which is what the previous Government did. Not building any generation, but more investment in new generation. Because the more generation you have, the more transmission you have. That's what drives down prices. That's what makes our economy more competitive. And finally, just on the energy question, that's why we announced in the budget reserving 20% of Australian gas exports for Australian industry to deliver a surplus of gas. Instead of being a gas exporting economy that doesn't reserve gas for Australians, reserving Australian gas for Australian industry to make our economy stronger, to make Australia stronger and to deliver lower cost energy for heavy manufacturing.

HOST: Good to talk to you and appreciate your time this morning and enjoy. I believe you're addressing a business lunch at Surf House at Merewether today, Tim.

AYRES: Yeah, really looking forward to that. Visiting a business in Medowie [called] VeraSys that we've just supplied a grant of well over $2 million to that manufacturer here in Australia that will, because of this grant and because of the support that they're getting employ 23 Australians in Medowie, making unmanned drones powered by artificial intelligence that are going to be used in agricultural technology. So, delivering local manufacturing jobs here in the Hunter, but making our agriculture sector more productive.

HOST: Good. Alright, you enjoy your time here and as always, good to talk to you. Tim Ayres, our Industry Minister who's back in town today and will be addressing a business lunch and also support for a local business.

ENDS.