The NSW government has been slammed for “bragging” about the use of Spanish steel in a major Sydney rail project.
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South Australian Independent senator Nick Xenophon used the Senate steel inquiry’s visit to Wollongong on Friday to take aim at the government for importing steel for its $8.3 billion Sydney Metro Northwest project.
“It’s a disgrace the NSW government was practically bragging last week about bringing in 100km of steel rail tracks from Spain as though that they were getting a great deal, when that could have been sourced from here in Australia,” Senator Xenophon told the Mercury.
“The NSW government has either been asleep at the wheel or completely reckless in the way that it has done its procurement policies.
“It would be trashing the national interest if we trash the steel industry in this country.”
On March 22, Minister for Transport and Infrastructure Andrew Constance revealed about 6500 tonnes of railway steel for the Metro Northwest had arrived from Spain.
The steel required for the project isn’t made by BlueScope Steel at Port Kembla but can be manufactured at Arrium’s Whyalla steelworks.
Steel industry campaigner Ian Waters, from Unanderra-based K&R Fabrications, said the government’s move sent the wrong message.
“It’s the principle of the fact; if you’re going to import your rail from Spain, when you come to need a steel product that BlueScope does make you’re going to import that from ... wherever you can get it as well,” Mr Waters said.
A Transport for NSW spokesman said Metro Northwest builders “held a competitive tender process involving both Australian and international suppliers”.
“They took into account a number of factors, including the ability to deliver on-time,” the spokesman said.
“The use of Australian products is a commercial decision made by contractors and Transport for NSW encourages its suppliers to source materials locally where possible.”
The spokesman said Australian steel was used in a range of Transport for NSW projects, listing the Foxground and Berry bypass – which used 54 per cent Australian steel – and the Gerringong upgrade (62 per cent).
“Where possible, we will continue to use local steel suppliers while getting the best value possible for the people of NSW,” he said.
