Port Pirie. Hobart. Whyalla. Bell Bay. Gladstone. Mt Isa. Tomago. Whether it’s lead, zinc, copper, manganese, steel or aluminium, it seems not a week goes by without another industrial facility in a regional area finding itself in financial difficulty and asking for a government bailout.

But in responding, the government is straying towards the jaws of a classic industry policy trap, which props up uncompetitive firms and creates a drag on productivity.