Modelling by the University of Wollongong and the Illawarra Regional Information Service (IRIS)

It also showed the

One of the authors of the report, researcher Simon Pomfret, yesterday said the $30 million Illawarra regional investment fund, jointly funded by Federal and State governments, along with BlueScope Steel,

"We welcome any support from government, but the size of that fund, it will have a marginal impact on potential job losses modelled here," he said.

"Thirty million dollars is a drop in the ocean."

He also said the report was held back for eight months due to fears it would further dampen confidence in the region.

Ms Gash said the report showed the Government's response to the downturn had been confused and misguided.

"The Government's response has been one of almost negligence," she said. "They have not understood what their [funding support] was even for."

The Coalition government's response to the crisis would involve scrapping the carbon tax in a bid to boost morale in the sector, Ms Gash said.

South Coast Labour Council secretary Arthur Rorris said the modelling showed the Government's response to the downturn fell short of what was needed.

"It is not nearly enough to address the economic tsunami that we have faced," he said.

Regional MPs Sharon Bird and Stephen Jones were unavailable for comment yesterday.

Meantime, Commonwealth-backed Regional Development Australia, Illawarra, distanced itself from the modelling.

Chairman Eddy De Gabriele said he welcomed the findings but said he had no hand in their creation, in contradiction to the report itself, which stated the body was one of three government bodies to request the economic modelling.

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