Industry bailouts defended as Iran war smashes markets
With fuel shortages amid global tensions, the federal government is pinning Australia’s future on a closer link between industry, science and research.
Industry Minister Tim Ayres used his first National Press Club address to outline Labour’s strategy for a more connected system.
His speech came three weeks into the Iran war, when “the world around us is being reshaped, rules and norms are changing” as gas stations run out of fuel as the conflict escalates.
“We don’t have time to marvel at the problems. We must make Australia stronger, smarter, safer and more resilient to the shocks that keep coming,” he said on Wednesday.
Senator Ayres spent the morning in central Queensland announcing a $2 billion rescue package to secure the future of the Boyne aluminum smelter.
He was asked about the government’s decision to back Rio Tinto, which owns the smelter and makes billions of dollars in profits every year, over other start-ups.
“This provides economic security for the region, connects the industrial park to the Australian economy, represents Rio Tinto’s $7.5 billion investment and power purchase agreements to build new renewable energy projects,” Senator Ayres said.
“This is a slam dunk in terms of productivity and investment, and we are working hard in an environment where the product market is shaped by international markets that do not have a level playing field.”
Senator Ayres said he was “unabashedly in favor of regional economies” and that they were essential to Australia’s future security and resilience.
“There are a few people in parliament like Matt Canavan, Angus Taylor and Andrew Hastie who stand next to other people’s muscle cars and always act like they’re interested in Australian automotive manufacturing,” he said.
“Save us from the hypocrisy of the confusing approach of those who claim to have recently discovered industrial policy and sovereign production.”
Asked whether he would follow up on calls from the Australian Academy of Science to secure continued public funding for the CSIRO in the wake of major redundancies, Senator Ayres said the government would protect its future.
“We’re going to be here for Australian science, we’re going to support Australian science talent because it’s there,” he said.
CSIRO cut up to 250 jobs in late 2025, following more than 800 redundancies previously; Environment, agriculture and food units were among those most affected.
On Monday, Senator Ayres revealed eight per cent of petrol stations in Australia lack at least one form of fuel and told the press club that these times “require deep thought, heavy lifting and a coordinated effort”.
“These are difficult times and budget processes are challenging. But this is the mission of the Albanian government,” he said.
“To stop the drift and change it with discipline and determination to do so at a critical juncture in Australia’s history.”
Lauding the “largest pro-manufacturing industrial policy in Australian history”, Senator Ayres said it would be “a hands-on mission across the board” to bring governments and the private sector together.
“My job is to put this effort together, extract every bit of it from the system, and deliver it effectively,” he said.
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