Interview with Jess McGuire, ABC NSW Drive

JESS McGUIRE, HOST: Should we be making more stuff in Australia again? We know that we need to transition to a different energy system. Energy is the big discussion point at the moment. Could we turn that into an opportunity for revitalising a manufacturing industry here? Maybe we could provide jobs in this greener, renewable world. Well, today the Federal Government introduced their $22.7 billion Future Made in Australia Bill, aiming to position Australia as a leader in the global renewable energy sector. Here to discuss that legislation, we have Jenny McAllister, the Assistant Minister for Climate Change and Energy. Thanks for joining us.

SENATOR JENNY McALLISTER, ASSISTANT MINISTER FOR CLIMATE CHANGE & ENERGY: Thank you for having me on.

McGUIRE: Now, what was the focus of this bill?

McALLISTER: Look, this is an important plank in our Future Made in Australia package. We are really at the start of an incredibly transformative economic shift here in Australia, but internationally too. It's that transition you referred to just now from old fuels to new. And it really is a global race to be part of the jobs and industries that will come with that. So the bill that we're introducing today lays out the framework that we'll use as we're seeking to work with businesses, work with communities, to stand up the industries that are going to be part of this big change.

McGUIRE: So, when we look at areas like battery and solar panel manufacturing, are these sort of the -- the paths that we might go down, and they could really be supported by this Future Made in Australia Act?

McALLISTER: If we really think about Australia's core advantage, it lies in having lots of land, lots of renewable resources like wind and sunshine, and a really stable investment environment with a skilled workforce. And what that means is that we're in a position to stand up industries in things like green hydrogen, green metals, some of those clean ammonia products that are really in big demand. But what we might also find is that it's important for Australia to invest in some of the technologies that help us bring about that clean energy transition. So, batteries and solar manufacturing are part of that as well. We are thinking about all of the ways that we can invest in the industries and the jobs that are part of this global transition to net zero.

McGUIRE: Now, the Opposition has claimed that this is just about a “grants and incentives scheme,” I'm quoting them here, that manufacturers need to lower energy prices, flexible industrial relation laws and lower taxes. So, how will you be working with existing manufacturers to make it more viable and cost-effective to create products here in Australia?

McALLISTER: It's a really disappointing approach from the Coalition, isn't it? You know, it's just so negative. We are on the cusp of being part of a global wave of investment and creating industries and jobs that will set up this generation and future generations for decades. And all we're hearing is a big hard no. We of course want to see existing manufacturers do well in this system. And part of the bill that's being introduced today sets out a set of community benefit principles. It says where we're seeking to make a public investment to bring on - co-invest with a private sector entity. We want them to set out the way that they're going to support communities, support the increases in skills, provide good jobs that are secure and safe and well-paid, but also improve Australian industrial capability, including through strengthening existing supply chains that exist within Australian existing capacity.

McGUIRE: I mean, I'm assuming you'd want to bring private industry really along for the ride. I have heard a criticism that it might not be enough money to get the job done, but it's really trying to encourage more people, I'm assuming, to get involved in manufacturing here.

McALLISTER: Yeah, we really think that there are so many opportunities here and we're already seeing the private sector stepping up and getting involved. You know, in my home state in NSW, where all your listeners live too, Tomago Aluminium is a huge user of electricity. They're a really important manufacturer in our state and generate a lot of really good jobs in the Hunter. They are looking at opportunities to transition their aluminium smelting operation to 100% renewable because they understand that being able to export aluminium that can be clearly described as a green aluminium product is a really important opportunity that they're interested in exploring.

McGUIRE: Well, you've introduced the bill, you've now got to get the legislation through parliament. The Greens have said that their support is contingent on the legislation not enabling more fossil fuel production. So, where does fossil fuel production sit in your energy plans going forward?

McALLISTER: It's really clear in the bill that the focus is on the transition to net zero and we are incredibly focused on that, mainly because we see the economic opportunity that's before us. We know from all of the best advice we have from the energy market that there will be a role, some small role for fossil fuels in the energy system to 2050. The best advice we get from the market operator is that we will likely have a combination of wind and solar, firmed by pumped hydro and batteries with a small amount of gas. That's the advice that they provide us, and that's the vision for the energy system that we're working towards. In terms of getting support, we think everyone in the parliament should vote for this bill. It's a really important bill that sets up opportunities for jobs right across the country in our regions. We'd be, of course, talking to everyone in the parliament. But really, people need to get on board with this.

McGUIRE: Well, it certainly would be historic if we found a bill that united all the parties behind it. I mean, before I let you go, Jenny McAllister, the Coalition have their plan that they've announced for nuclear energy. Would you consider nuclear as part of the energy mix?

McALLISTER: This is barely a plan, to be honest. I mean, they are planning to introduce the most expensive form of electricity generation that there is in two decades time. And the risk with this is that it stops us from seizing the opportunities that are present now. There is a wave of investment coming globally in terms of the transition to a clean energy future. We cannot afford to wait decades for a technology that all of the experts tell us is too expensive and too slow.

McGUIRE: Jenny McAllister is the Assistant Minister for Climate Change and Energy, here with us today to discuss the future made in Australia bill that has entered parliament. So, much for talking to us. We really appreciate it.

McALLISTER: It's a total pleasure. Thanks for having me on the show.