Prime Minister Malcolm Turnbull has spoken for the first time about the fight to save the Port Kembla steelworks.
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The Illawarra’s steel crisis was on Mr Turnbull’s mind this week when he penned a six-paragraph response to a letter he received from Opposition leader Bill Shorten last month.
In his letter, obtained by the Mercury, Mr Turnbull fell short of making any promises or commitments.
Instead, he chose to provide an overview of what’s happened to date.
The background included BlueScope’s October 26 decision to continue making steel at Port Kembla and save 4500 jobs.
“I welcome this positive outcome for the company and the Illawarra region, as I’m sure you do,” Mr Turnbull wrote.
No acknowledgement was made of the 500 workers who will lose their jobs at the Port Kembla plant, despite some recognition of action taken by the Australian Workers Union and South Coast Labour Council.
“The government recognises the important steps that BlueScope has taken with the unions and employees to assist more flexible and efficient steel production at Port Kembla,” he said.
Last month, steelworkers voted on a deal that included job cuts and a wage freeze in order to save the company about $60 million.
Mr Turnbull also acknowledged the assistance provided by the NSW government, which announced tax concessions for the company.
The “one-off, unique solution” provides a structured deferral of payroll tax of up to $60 million over three years.
Illawarra Labor MPs slammed the Prime Minister’s response, saying he has “failed to show leadership”.
Member for Cunningham Sharon Bird and Throsby MP Stephen Jones say Mr Turnbull has refused to commit to strengthen anti-dumping measures or work to maximise the use of Australian steel.
A Labor push to reinstate the Illawarra’s Local Employment Coordinator also went unanswered.
“It’s way over time for the Turnbull Liberal government to make good on all the promises they’ve been making to our local area for action on supporting our steel industry,” Ms Bird said.
“We’ve had enough meetings, we need to see some real commitments.”
Mr Jones said the people of the Illawarra were looking to the Turnbull government for leadership.
“Unfortunately, Malcolm Turnbull’s response to Bill Shorten shows that he is missing in action.
“There are 9,400 people in the region looking for work right now and they are set to be joined by 500 more from the steelworks.
“They don’t need empty promises, they need a Local Employment Coordinator to help them find alternative employment.”
Mr Jones reiterated the need for Illawarra steel producers to be at the front of the queue when it comes to large infrastructure projects.
“BlueScope workers and unions have made enormous sacrifices but they don’t have the backing of an out-of-touch government that clearly isn’t concerned about the long term future of steel making in the Illawarra,” he said.
Mr Shorten said the Prime Minister’s response to the crisis was “typical – all talk and no action”.
“It’s pathetic, really,” he said.
“I urged Malcolm Turnbull to take immediate action to address the steelmaking crisis and he has refused to do so.
“The region is sick of the neglect and lack of action by this Liberal Government. It is not good enough, doing nothing is simply not an option.”
Mr Turnbull said the federal government has a “network of support” in the Illawarra, including its Entrepreneurs’ Program that “helps local businesses improve their competitiveness and create jobs of the future”.
“The new jobactive service can assist retrenched workers find new employment,” he said.
A copy of Mr Turnbull’s and the Opposition leader’s letters had been forwarded to federal Industry Minister Christopher Pyne.
Mr Shorten’s letter to Mr Turnbull, dated October 23, had called on the Prime Minister to act immediately to save Illawarra steelmaking.
“P.S. Let’s work on this together. Happy to further discuss when we next meet” was written in blue pen at the end of the typed document.
Mr Turnbull said the government would “continue to engage with the company and others on BlueScope’s future and a strategy for long-term economic development in the Illawarra”.