RYK GODDARD, HOST: Tim Ayres is Minister for Industry, Science and Innovation with the Albanese Federal Government, and is in town to make an announcement with Nyrstar. Good morning, lovely to have you here as well. What are you announcing?

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: Well, we'll make an announcement jointly with the Tasmanian Premier. What I can say now is that Nyrstar facility in Hobart, and the facility that has such a strong relationship with it, Nyrstar in Port Pirie, they are both vital facilities for their regional economies, and the agreement that we've reached with Nyrstar, some 15 months ago, was to support critical minerals production, in addition to zinc production here in Hobart and lead production in Port Pirie, that is a really important asset for Australia. We’ve been working really carefully together with the two state governments, with the Rockliff Government and the Malinauskis Government in South Australia, and while I'll leave the announcement until I get out there with the Premier, I do want to say that I'm just so proud of the work that workers at that facility and management at that facility have been doing together.

HOST: So that announcements at 9 o'clock and in the past, if it was a Labor government, you'd be all about protecting jobs, jobs, jobs, but in this case, because it's minerals, has this become an issue where you can tap the Defence Minister, where you can talk about sovereignty? Is it a bigger fish than just regional jobs?

AYRES: Well, we're certainly in an environment where economic resilience and those Future Made in Australia objectives have been underscored by the conflict in the Strait of Hormuz, and Australia's vulnerability at the end of long supply chains really underscores how important it is that we rebuild our manufacturing capability, particularly in key industrial areas like this one.

HOST: Also, our science capability, so some quite big cuts happening to CSIRO. There's certainly anxiety always in Hobart about any impacts on Antarctic programs. What's your role in that?

AYRES: Well, the CSIRO has a billion dollars a year in funding from the Commonwealth Government. We have provided in this budget, an additional on top of the billion dollars, [$387 million] over the forwards to make sure that we stabilise the CSIRO. There are some changes that the CSIRO is making internally, that is a matter for them, but they are making sure that their research programs are in line with the national science priorities, that's a process that hasn't happened for 15 years. They have worked through that process, and I'm sure they'll be able to talk to Tasmanians about what that means, but I'm very confident that we've stabilised the CSIRO, and we're making sure, just like I was going through all of those manufacturing and industrial issues, the CSIRO is our industrial research and applied science organisation. It is crucial for our industrial future, Australia's future economic resilience, and good jobs in manufacturing. So, we are making sure it's match fit and ready for the future.

HOST: In terms of Australia being match fit and ready for the future, Minister, this is Minister Tim Ayres, Minister for Industry, Science and Innovation, 24 past seven, 936 ABC Hobart, with me, Ryk Goddard. There is a lot of concern in the community about the Federal Government approving gas exploration and large gas projects, where fossil fuels, we know, are not the energy future for the planet. Other countries are way ahead of us in some of those areas. What are you doing as the Minister to make sure that we're actually investing in future technologies, not bailing out past technologies?

AYRES: Well, can I give you two answers, If I can? The first step is a very big step for Australia that we announced just before Christmas, and we finalised the announcements of the policy parameters just a few weeks ago, and that is reserving 20% of Australia's gas export production for Australian industry. That is there to make sure that Australia, as a large gas exporter, is securing the advantage of the lowest possible cost gas for industry and for households, and there are some industrial processes where gas isn't just a provider of heat energy, but is part of a chemical process, and I want to make sure that gas is there as part of our economic and industrial transition, and that Australia benefits from low gas prices. 

HOST: What about tax on our gas that can then provide housing?

AYRES: Well, we are focused on a much bigger measure. This provides a very substantial obligation on our gas producers to preserve 20% of production for Australian households and for Australian industry, that is a very substantial measure. Our gas market was set up in the late 90s, early 2000s, and you know, as a trade union official in Australian manufacturing, I watched what happened when Australia was exposed to the world price of gas, and manufacturing became less and less competitive, and that meant important capabilities like plastics manufacturing went offshore. We actually need those capabilities in Australia to protect our economic resilience in what is going to be a challenging period ahead and in energy security terms, we need to make sure we're building a modern electricity system that is renewables, backed by hydro and backed by gas, that we're reindustrialising our economy with low carbon competitive industries like low carbon steel, critical minerals production, like these are big opportunities for Australia, but we've got to seize the moment now.

HOST: 26 past seven, 936 ABC Radio Hobart. Right now, Tasmania's native forest logging is mostly regulated under a long-running agreement between state and federal agreements, Regional Forest Agreement, that excludes us from a lot of environmental rules. That's changing in 2027 and it's being negotiated now. Big media release out, there's at least three ministers' names on it, you know it's serious. Federal Industry Minister Tim Ayres, is it time for native forest logging to end at 2027? Do we need to do that across all states in Australia? 

AYRES: This announcement means that the Regional Forest Agreement in Tasmania, there is a discussion now to bring it into line with the new EPBC Act that was passed last year. So, Murray Watt will be leading that work. There will be very constructive and have already been early discussions that have been going very well between the Rockcliff Government and the Federal Government on environmental questions led by Murray Watt. That means high standards for the Regional Forest Agreement. It doesn't mean that the Federal Government's in there approving forestry developments coop by coop. It means that there will be a framework that will have high standards. The industry itself says they have very high standards in this area. We are supporting this with an $8.5 million allocation to support the industry through that, and Agriculture Minister Julie Collins and I announced last year a $300 million allocation for value add in the timber sector, so from the timber sector through to housing.

HOST: Is that money that's subsidising forestry companies to get out of the industry or is it about advancing companies into new businesses?

AYRES: That $300 million allocation, and the National Reconstruction Fund’s work is about value add to timber products, so it's about areas like modular housing, areas like smart engineered timber products, it's about making sure that we're not just exporting a raw product overseas, but that we're adding value and real good jobs in outer suburbs and regional areas.

HOST: 29 past seven, Tim Ayres, Industry Minister. Just got time for one more question. News at half past, it stops for no person, Minister.

AYRES: Not even industry ministers?

HOST: Not even industry ministers. AI data centres, there are a lot of anxieties in the community that they threaten our sovereignty in terms of the information they process and why they need to use so much fresh water. What are you doing to make sure that we get jobs and that we get the benefits of those?

AYRES: Two things, I'll try and be really quick. Number one, it is really important for Australia's sovereignty and our economic resilience that we are securing investment in this important area of technology, so that Australia is not just a customer for artificial intelligence and digital technology products from overseas. We have, in addition to our approach here in the National AI Plan, we have the Artificial Intelligence Safety Institute, which is open for business now and focused on those safety issues that the technology brings for Australians. Secondly, data centre expectations mean that we are delivering a requirement on electricity –