Federal Industry Minister Ian Macfarlane will meet BlueScope Steel management next week after hearing firsthand the devastating impact a Port Kembla steelworks closure would have on the Illawarra.
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He has also committed to a subsequent meeting with all key stakeholders, including unions and local MPs, to try to come up with a long-term solution to the industry's woes.
Mr Macfarlane discussed the future of the region's steel industry with an Illawarra delegation in Canberra on Thursday and told the Mercury the meeting was held "in good spirit".
"There was a commitment that I'd take the matter up with BlueScope Steel," he said.
"I'm happy to get my department involved in looking at options for the Illawarra because obviously, just pouring money down the throat of BlueScope won't necessarily solve the problem.
"I need to be sure whatever the solution is is a long-term solution for jobs in the region."
South Coast Labour Council secretary Arthur Rorris, who was part of the delegation, said the briefing was constructive.
"With the minister, we put a very forceful position that Australian taxpayer dollars should be used to buy Australian-made steel," Mr Rorris said.
"We understand that is only part of the solution, not the total solution but it needs to happen."
Mr Rorris said Mr Macfarlane did not give a commitment regarding procurement and mandating policies, however, he was "in favour" of the suggestion to bring key stakeholders "together in a room to discuss this frankly and with a view to securing the future for our region".
"That meeting would include BlueScope, the unions, the minister himself and our local members from both sides of politics," Mr Rorris said.
"The minister has taken that in a positive way, as has [Liberal] Senator Concetta Fierravanti-Wells and [Gilmore MP] Ann Sudmalis.
"They will come back to us about how that might happen ... but I can say everyone is of the view that this needs to happen sooner rather than later."
Mr Macfarlane told the Mercury he would meet BlueScope chief executive Paul O'Malley and his team next week, on a day to be determined.
"The unions asked that it not be political ... I'm quite happy to do things on a bipartisan basis," he said.
"If people start playing politics, the losers are the local workers."
AWU Port Kembla secretary Wayne Phillips, who also attended the briefing, said the Liberal politicians understood the seriousness of the issues.
"We left with the knowledge that everyone here in Canberra appreciates how serious this situation is, that was reflected in both the content and the tone of the conversations we had with both the minister and the shadow minister and our local members," Mr Phillips said.
Mrs Sudmalis said potential solutions for steelworkers included defence procurements, potential specialist steel production, alternative use for surplus BlueScope land such as moving some of the navy operations to the Illawarra, and exploring the relocation of container ship functions from Sydney Harbour to Port Kembla.
The Illawarra delegation also met independent senator Nick Xenophon who was "very positive" and understood the importance of "procurement and the need to buy and make steel here," Mr Rorris said.
