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Grace Crivellaro

RARE PHOTOS: Industry bailouts defended as iran war smashes markets - The Real Truth

A huge bailout for Rio Tinto's smelter is a 'slam dunk' for productivity, a senior minister says. (Joel Carrett, Bianca De Marchi/AAP PHOTOS)

With fuel shortages biting amid global tensions, the federal government is betting Australia's future on a tighter link between industry, science and research.

Industry Minister Tim Ayres used his first National Press Club address to outline Labor's strategy for a more connected system.

His speech came three weeks into the Iran war where "the world is being remade around us, rules and norms are in flux" as service stations run dry of fuel as the conflict escalates. 

"We don't have time to stand around admiring problems. We must make Australia stronger, smarter, safer and more resilient to the shocks that keep coming," he said on Wednesday.

Industry Minister Tim Ayres addresses the National Press Club
Industry Minister Tim Ayres says rules and norms are in flux due to the Middle East war. (Lukas Coch/AAP PHOTOS)

Senator Ayres spent the morning in central Queensland announcing a $2 billion bailout to secure the future of the Boyne aluminium smelter.

He was asked about the government's decision to support Rio Tinto, which owns the smelter and turns over billions in profits each year, instead of other start ups.

"It delivers economic security for that region, it connects that industrial region with the Australian economy, it represents a $7.5 billion investment from Rio Tinto and power purchasing agreements that will build new renewable energy projects," Senator Ayres said. 

"That is a slam dunk in productivity terms, in investment terms, and we are working hard in an environment where the market for products ... is being shaped by international markets that aren't level playing fields."

Senator Ayres said he was "unashamedly for regional economies" and they were essential for Australia's future security and resilience. 

Industry Minister Tim Ayres addresses the National Press Club
The smelter bailout will deliver economic security for regional Queensland, Tim Ayres says. (Lukas Coch/AAP PHOTOS)

"There are a few people up in parliament - Matt Canavan and Angus Taylor and Andrew Hastie - who posture alongside other people's muscle cars and pretend they have always been interested in Australian automotive manufacturing," he said.

"Save us the hypocrisy of the approach, a very confused approach from people who pretend to have recently discovered industrial policy and sovereign manufacturing."

Asked if he would follow calls from the Australian Academy of Science to secure ongoing public funding for the CSIRO after major job cuts, Senator Ayres said the government would protect its future.

"We'll be here for Australian science, we'll back Australians science capability, because it's there," he said. 

CSIRO cut up to 250 jobs in late 2025, following over 800 previous redundancies, with the environment, agriculture and food units among those hit the hardest.

The CSIRO building in Canberra (file image)
Tim Ayres says the government is backing science to help protect its future. (Lukas Coch/AAP PHOTOS)

On Monday, Senator Ayres revealed eight per cent of Australia's service stations were without at least one type of fuel, and told the press club the current times "require deep thinking, heavy lifting and a co-ordinated effort".

"Times are tough, and budget processes are tough. But this is the Albanese government's mission," he said.

"To stop the drift and replace it with discipline and determination to deliver at a critical juncture in Australia's history."

Taking credit for "the largest pro-manufacturing industrial policy in Australian history", Senator Ayres said it would be "all hands-on deck" to bring together governments and the private sector.

"My job is to bring that effort together, to squeeze every ounce out of the system and deliver with impact," he said.

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