A motion calling on the federal government to save the Illawarra's steel industry passed in the Senate on Tuesday.
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Senator Lee Rhiannon's motion called on the federal government to "intervene in the fate of BlueScope to save the steel industry in Port Kembla".
Sen Rhiannon, the Greens spokeswoman for NSW, said the Senate's request for federal government action was about protecting existing jobs and building a platform for the next generation of economic growth in the region.
"This is not just an Illawarra issue; it is a state and federal issue and the future of Port Kembla cannot be left up to BlueScope, a company that is prepared to sacrifice the strategic and economic importance of the blast furnace to fatten up its profits," Sen Rhiannon said.
"The Abbott government needs to urgently engage with this issue and I congratulate the unionists and the Illawarra community for their campaign to save BlueScope steelworks."
The South Coast Labour Council and Australian Workers' Union have called on all levels of government to mandate the use of at least 50 per cent Australian-made steel in taxpayer-funded infrastructure projects.
SCLC secretary Arthur Rorris said the motion's passage was another step forward in the unions' campaign.
"Clearly the Australian Senate has recognised our industry is in crisis and we do need serious consideration of procurement strategies," Mr Rorris said.
"We think this is a very positive result and we will keep working on all spheres of politics to get a position of national unity on the question of saving our steel industry."
Speaking on behalf of Industry Minister Ian Macfarlane, the manager of government business in the Senate Mitch Fifield said the federal government encouraged major projects to develop an "Australian industry participation plan".
The plan sets out how they would provide "full, fair and reasonable opportunity for Australian industry to participate in the project".
"In line with international obligations, an Australian industry participation plan does not mandate the use of Australian industry but provides opportunities for capable and competitive Australian industry to participate in investment projects," Sen Fifield told the Senate.
"Mandating local content would increase costs to the community and to major project proponents, with associated risk of reducing competition and moving projects offshore."
BlueScope says no decision has been made on its future in the region, however, it has conceded a "game-changing approach" is needed to keep Port Kembla steel operations viable.
Senator Lee Rhiannon’s motion
The Senate notes:
- That more than 10,000 jobs are directly dependent on BlueScope Steel’s operations in Port Kembla.
- That more than 20per cent of young people in the Wollongong region between 15 and 24 years of age are unemployed and many more are underemployed.
- That the Port Kembla steelworks have been the backbone of the Illawarra economy for more than 80years.
- That the New Steel Deal proposed by the South Coast Labour Council, AWU Port Kembla and supported by many other stakeholders in the Illawarra includes a public procurement framework mandating at least 50per cent of Australian-made steel in all federal and state infrastructure projects.
- The Senate calls on the government to consider policy options, such as the New Steel Deal, and begin talks on the future of the Port Kembla steelworks with unions, BlueScope Steel management, NSW government and other stakeholders with a view to saving the Port Kembla steel industry.
