A Federal Government rescue package which promotes the use of Australian-made steel has been heralded by unions as the most significant reform in the industry for 25 years.
Innovation Minister Kim Carr announced the formation of a national Steel Industry Innovation Council - which will include unions and Port Kembla-based BlueScope Steel - at the ALP conference in Sydney yesterday.
The council will identify opportunities to expand the industry and develop better connections between Australian steel suppliers and local project proponents to ensure cheaper overseas companies can't take local work from under the noses of local firms.
Tahmoor colliery cuts 158 jobs SLIDESHOW: Port Kembla No 5 blast furnace reline winds up Campaign to use Aussie steel heats up A key aspect of the plan is the recruitment of a person, to be known as the Supplier Advocate, whose job it will be to champion Australian industry participation in major projects, improve competitiveness and provide procurement support.
"If Australian steel is good enough to be used on projects around the world, it should be good enough for major infrastructure projects in this country," Senator Carr said.
"But instead we are seeing entire plants imported from overseas, right down to the last nut and bolt.
"We have French engineers designing projects in Australia to Japanese specifications - giving local steelmakers no chance to participate."
Australian Workers' Union national secretary Paul Howes told the Mercury yesterday the new council made safer the 12,000 Illawarra jobs directly and indirectly related to the steel industry.
The union had previously warned the global financial crisis and cheap overseas steel threatened the viability of the steelworks.
"I hope that my members and steel workers in the Illawarra wake up tomorrow with the certainty of knowing their interests are now at the forefront of the Government's agenda which is not where we were a few months ago," Mr Howes said.
"This is the most significant change since the Button Steel Plan (a major restructuring said to have saved the industry after 1983)".
Mr Howes said the Supplier Advocate would make it harder for overseas companies to do deals in Australia without Australian companies also bidding for the work, as had occurred in recent times.
Membership of the council will include BlueScope Steel, the Australian Workers' Union, Australian Manufacturing Workers' Union, the Australian Steel Institute, CSIRO other other parties.
Mr Howes said together the group could impart strong pressure and build compelling cases for governments and private enterprise to use Australian steel.
BlueScope Steel accepted the invitation to participate last yesterday.
"We see strengthening relationships with the Government and the relevant working parties that make up the Australian steel industry as important," a BlueScope spokesman said.
"BlueScope Steel prides itself on being internationally competitive."
Throsby MP Jennie George said the council for steel innovation was the result of months of heavy negotiation and provided greater certainty about the future for thousands of Illawarra workers.
Email a friend