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 Campaign to stop Aussie firms using imported steel heats up 

Campaign to stop Aussie firms using imported steel heats up

22 Jul, 2009 09:04 AM
Australia's steel union is planning to increase pressure on the Federal Government in the lead-up to the ALP national conference on July 30 amid the threat of overseas competition.

Steel procurement policy is expected to be high on the agenda at the conference, with the union claiming the Government has done little so far in response to the Australian Workers' Union Steel Plan, launched in April.

Unions have this week increased their protectionist push leading up to the conference after revelations over the redevelopment of the Carlton Football Club's Princes Park stadium in Melbourne, partly funded by the Victorian State Government. The project is using cheap Chinese steel rather than Australian product.

  • SLIDESHOW: Port Kembla No 5 blast furnace reline winds up

    Australian Workers' Union Port Kembla branch secretary Andy Gillespie said although the problem was less of a concern in the Illawarra, the continued use of imported steel in major projects around the country made workers "pretty cynical about the Federal Government's policies".

    "This issue is going to be high on the agenda at the national conference," Mr Gillespie said.

    Mr Gillespie yesterday phoned senior representatives of the union, based in Victoria, to see what could be done.

    Australian Workers' Union national secretary Paul Howes expressed concern that taxpayers' money was being sent overseas when Australian steel jobs were under threat.

    There is speculation in some circles that the Federal Government may use the conference to announce a support package in response to the Australian Workers' Union Steel Plan.

    In recent weeks union heavyweights and government officials have been discussing ways to help the ailing sector.

    On releasing the steel plan, the union warned that up to 500,000 Australian jobs could be lost if the Federal Government failed to support the industry.

    Industry Minister Kim Carr recently told the Mercury the Government was considering the steel plan but any action would need to comply with World Trade Organisation rules.

    A moderate rise in demand for BlueScope Steel product last week led to the company announcing it would restart its No 5 blast furnace.

    But the unions and BlueScope warn there is a long way to go before output increases to pre-recession levels.

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    comments


    Date: Newest first | Oldest first
    I would ring up and complain to companies using cheap steel from China but my calls go to a call centre in India. I can't go out to complain because I refuse to buy non Aussie made clothing. It's cold and I'm naked.
    Posted by Paddy, 22/07/2009 7:27:45 AM, on Illawarra Mercury
    If our steelmills are good enough they will survive just not sure that they are
    Posted by PH, 22/07/2009 8:54:16 AM, on Illawarra Mercury
    World Trade Organisation rules? Are these the same rules that allow the continuation of major protectionist policies of USA & the Eurpean Union and a number of our other major trading competitors? Australian governments have talked long and loud of free trade policies, level playing fields and anti-protectionism but that is all it is, meaningless talk. Whilst we are eliminating tarrifs and industry protection our competitors are filling the supply void. If we as a nation dont support (through preferential purchasing policies) major industries such as steelmaking we are cutting our own throats. Dont think that any other sector is going to replace 1:1 the lost dollars, direct & reliant jobs and future opportunities if the steel industry in Australia goes belly-up, especially in Wollongong.
    Posted by Bluey, 22/07/2009 9:52:42 AM, on Illawarra Mercury
    Most of the Street (smart) poles in Sydney are made in a foundry China, and bought into Australia There should be clauses enforce in all building contracts that there be all Australian Content. Australian companies that have moved their operations and manufacturing overseas, Should be excluded from all public and government tenders Just because these firms are listed on the ASX does not make them Australian If it good for the America to protect their job it should be good for us
    Posted by Icepick, 22/07/2009 10:49:19 AM, on Illawarra Mercury
    PH, we have never had trouble with Aussie made steel, but the rubbish coming out of Asia is another story. Stainless steel that rusts (316), high tensile that is just within tolerances ( according to their assay) Loctite that doesn't lock, precision tools that are a joke, I can go on & on. At the end of the day, we are required to work to Australian manufacturing standards but with inferior materials, so when something goes wrong, which it will, and someone is killed who will be to blame. So PH next time you drive over a bridge pray to God that it was made with good old Aussie steel.
    Posted by Beachcomber, 22/07/2009 11:01:44 AM, on Illawarra Mercury
    There's an awful lot of hypocrisy on this subject. I'm in the business of importing large steel products and we can offer goods manufactured here or import them for half the price. Given the choice ALL of our customers take the imported product because it's (almost) as good in quality but much cheaper. Are you people seriously saying that you would be happy for the government to spend $20 million of your tax dollars for a contract to suppy the locally made product, when they could buy the import and save $10 million to spend on other essentials like health? It seems to me the people who are loudest on this issue are the same people who complain about how expensive everything is in Australia. You cannot have it both ways. If you want to keep jobs and industry here you must pay Australian workers under Australian pay and work conditions and that costs a lot of money. If you want low prices then you either pay people less or you import. It's all well and good calling for a compulsory "buy Australian" clause but it completely ignores reality. Like it or not we live in the real world and if our products cannot compete then our industries will fail - it's as simple as that.
    Posted by Truestory, 22/07/2009 11:28:08 AM, on Illawarra Mercury
    There should be no reason to legislate, especially when the government has done away with tariffs. It is up to consumers to vote with their wallets. The problem is that not all imported goods are identified as such.
    Posted by Fergie, 22/07/2009 12:03:30 PM, on Illawarra Mercury
    Part of the problem is that many of the "low cost" producers are state owned and subsidised so essentially the governemnts are artificially lowering prices to boost market share and local employment and foreign currency transactions, whilst companies like BlueScope are not government owned and so do not have the same reserves and capacity for subsidy.

    So in maintaining "free trade" the OZ govt contracts are more likely subsidising foreign governments and employment. A level playing field is great, but only if the field is truly level. OZ attempting to lead free trade when such a small player is like a flea trying to lead a dog. It does work, and the flea simply ends up wherever the dog takes it.

    Posted by Pierre, 22/07/2009 12:23:53 PM, on Illawarra Mercury
    For those interested enough the article linked below from 2006 outlines the challenges of competing with Chinese steel comapnies due to Chinese Government intervention www.wrf.com/docs/docs/80.pdf
    Posted by Pierre, 22/07/2009 12:30:44 PM, on Illawarra Mercury
    The people mostly complaning are the same people that forced a lot of project and services overseas, all I can say know is welcome to reality, "DID YOU THINK YOU WHERE GOING TO BE SAFE & PROTECTED" (LOL) I do not support the overseas moves but it is also hard to stop this, when times are good it is fully understanding and respected. However as times are tuff and people are depending on local work this should be considered more and respected as you (too) making the decision is most likely be saying the same thing when you loose your job and you have a family & morgae to look after??? All I can say is, be very carefull when making these decisions and you must look at times beyond the bottom line, cause when times turn and they will, every person will be singing a different tune. Thanks to all.
    Posted by Chris, 22/07/2009 7:23:59 PM, on Illawarra Mercury
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    An artist's impression of the Carlton Football Club's Princes Park stadium in Melbourne which is using cheap Chinese steel.
    An artist's impression of the Carlton Football Club's Princes Park stadium in Melbourne which is using cheap Chinese steel.
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