The $300 million lifeline for Australia’s steel industry is finally a sure thing after being voted through the Senate this morning.
After a long debate which started yesterday, the Federal Government’s Steel Transformation Plan (STP) was passed with the support of the Greens and independent Senator Nick Xenophon.
The STP was conceived mid-year as a way to protect the emissions-intensive steel industry from the impact of the carbon tax, by covering the predicted carbon tax bill of steel makers BlueScope and OneSteel.
BlueScope Steel has since announced plans to reduce its steel production by half, and its emissions by about 5million tonnes of carbon dioxide equivalent. Its plans saw about 1000 steel workers made redundant.
It will receive about $180million from the STP. The rest of the money goes to South Australia-based OneSteel.
The Coalition voted against the STP, with Opposition Senators saying it was a ‘‘band-aid’’ solution to costs caused by a carbon tax.
Earlier in the day South Australian Senator Xenophon had voted against the carbon pricing package but said the steel industry needed the support.
Greens deputy leader Christine Milne moved an amendment that the Green Jobs Illawarra Action Plan be considered when funding was allocated from the STP. This amendment was not successful.
The steel industry has been hurting as a result of high costs for iron ore and coking coal, and the high Australian dollar making exports unprofitable.
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