The New South Wales premier, Chris Minns, admits the Labor party needs to “climb Everest” to stay in power amid rising threats posed by One Nation.

But while Minns received a standing ovation as he circled Sydney’s town hall before addressing the NSW Labor conference on Saturday, he did not avoid the protests over conflict in Gaza which have marked party conferences in previous years.

As the premier made his way to the stage, two men unfurled a Palestinian flag from the balcony above. They were quickly removed by NSW police.

Minns, taking to the podium, told delegates: “I’m not here to do a victory lap”.

“The economy is nowhere near where we need it to be for working families, so today I want to speak about the next chapter in our plan to invest in workers, to grow the economy and to build the kind of industry that makes NSW strong.”

Minns used his speech to announce plans to extend the state’s apprenticeship program and bring train manufacturing back to the Hunter region. The government has identified potential sites for a state-owned, privately operated facility, in Teralba or Broadmeadow.

Labor says the $12bn commitment over 15 years project will provide 780 jobs in site construction and 550 in manufacturing. The announcement was met with cheers and applause inside the chamber.

Outside, protesters including members of Labor Friends of Palestine were kept well away from the conference itself by security fencing and lines of police officers on the site of a now-infamous protest against the Israeli president, Isaac Herzog, in February.

Fifty-six Labor branches have passed motions to the conference calling for controversial anti-protest laws to be repealed or reviewed, backed by the entire left faction.

Labor members are concerned that they will not be afforded the opportunity to debate the protest laws, gambling reform, and the Aukus nuclear agreement after the social justice and global affairs platforms were placed second last and last on the weekend’s agenda.

In his speech, the premier acknowledged “the protest group out the front of the town hall today”.

“They are not the first to try and disrupt our democratic conference and they probably won’t be the last – we’ve seen it all before.”

But a potential fight over the eight-person upper house Labor ticket at next March’s state election was resolved ahead of time, avoiding a conference-wide ballot on Sunday.

After an 11th-hour resolution was reached, the seven named candidates signed onto the order on Friday night, Labor sources confirmed. The ticket is led by the right faction member and treasurer, Daniel Mookhey, followed by the left faction member and leader in the upper house, Penny Sharpe.

The Left faction member Anthony D’Adam MLC, a vocal critic of Labor’s protest laws, Aukus and stance on the conflict in the Middle East, is fourth. The minister for agriculture, Tara Moriarty, seventh on the ticket, faces a tough contest to retain her seat amid rising support for One Nation.

Minns addressed the rising threat posed by Pauline Hanson’s party in NSW, referenced in several earlier speeches by delegates.

The premier criticised “leaders who are insisting that millions of people reject pride in their grandparents and ancestors and instead conform to One Nation’s version of an Australian monoculture”.

“And it means we stand up and defend Australian families of the Islamic faith when a political leader declares that there are ‘No good muslims’.”

Labor is ahead in recent polling in NSW, with its primary vote at 32%, the Coalition on 26% and One Nation on 22% according to the Sydney Morning Herald in May, but Minns hit back against Labor complacency, saying it was important to “beat back that darkness at the ballot box”.

“Now I know based on my 29 years in the Labor party you already believe we’re going to win. But the truth is – with politics changing so quickly, we need to climb Everest just to stay where we are.”

“This campaign will throw everything at us, we’re up against many parties, not a single opposition. And it will test us like never before.”

The prime minister, Anthony Albanese, will address the conference on Sunday.