Interview on the Today Show

HOST: Welcome back. After months of negotiations, $2.5 billion deal has been struck to help save Australia's largest aluminium smelter. For more, we are joined by Industry Minister Tim Ayres. Good to see you. Significant cost to the taxpayers for this. The Tomago Aluminium plant there was under threat of closing because of the extremely high energy costs. I understand it was something like 14% of NSW energy resources go to that one location.

HOST: Why do this?

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: Well, this is 1,100 workers here at this facility. Five and a half thousand workers throughout the Hunter rely upon the operations of Tomago Aluminium. It's a national asset.

These workers here, blue collar workers who work hard every day, turn up early and they've got a government and the Albanese Government working with the Minns NSW Government to back them and back this vital national industrial asset. It's important for Australia to have an end-to-end aluminium capability from mining bauxite through to finished aluminium products. This facility, our largest and youngest aluminium producer is vital for Australia and we're really proud to back these workers.

HOST: Okay, so the plant is owned by Rio Tinto. How much are they going to stump up here?

AYRES: Well, the owners of the facility will contribute an additional $1.1 billion over the top of what they were going to be doing already to support capital expansion at this facility. It will bring forward 3 gigawatts of additional electricity generation. The problem for this facility was that ageing coal fired power and the underinvestment in the electricity network over the course of the last decade finished by the Morrison Government had made electricity too expensive for the facility.

The Albanese Government's approach here, investment in new electricity generation and transmission delivers a real solution that targets the real competitive issue for Tomago Aluminium and will deliver more investment in electricity generation that will put downward pressure on prices for households and for other businesses as well.

HOST: Right. We're turning to issues elsewhere for your government because we're seeing today that 147 drones have been documented flying over military bases around Australia. I mean these could be spies from foreign countries. We don't really know who's behind it all at this stage. What's your government doing here? And are we being exposed to foreign threats?

AYRES: Well, that includes some what appears to be unauthorised activity here at Williamtown Air Base, just over the over the road here. It's unsafe, it's illegal. People who are doing this activity should stop it. They will face the full force of the law. It's absolutely unacceptable. The security of our air bases and for the travelling public as well. It's been a perennial issue in Australia and around the world and I know the authorities are very focused on this question.

HOST: Let's talk the Reserve Bank's decision earlier this week where Governor Michele Bullock said the AI boom is influencing RBA decisions on rates, data centre construction sucking resources away from residential housing. Is AI making our housing crisis worse?

AYRES: Well, that's why the Albanese Government's plan announced by the Prime Minister just a few weeks ago to legislate AI standards for Australia is so vital we will deliver legislation through the Parliament, working in cooperation with the states and territories. That means every new data centre, every large data centre must come with new power, new electricity.

It must come with a water plan that delivers water security. It must be in the right place at the right time, and it must deliver real benefits for Australia, particularly compute for new research and development capabilities. So, all of that work, led by Prime Minister Anthony Albanese to make sure that these data centre investments work for Australians and don't undermine our electricity or water security.

HOST: Just quickly before we let you go, the Government cannot escape the Melon Gate headlines that just keep coming day after day after day. Do you wish the PM had never gone on that podcast?

AYRES: Look, the relationship with Japan is just so crucial for Australia.

HOST: Do you wish he'd never gone on that podcast?

AYRES: Well, it's a crucial relationship. The relationship between the two Prime Ministers is a very strong relationship. I was there with them in the room when Prime Minister Takaichi came to the Australian Parliament. It's a vital relationship at Prime Minister level, all the way through to Ministers. Our defence forces working so closely together. Our trading relationship is so strong. This. This relationship gets stronger and stronger every day. And it's in the Australian national interest, wasn't the question.

HOST: We appreciate your time. Industry Minister Tim Ayres. Thanks so much.

AYRES: I'm just delighted to be here at Tomago Aluminium. Thanks, Tom. Thanks.

HOST: Couldn't miss you in the high viz. Well done.