A day after steel and mining group Arrium was placed into voluntary administration, a handful of council and steel industry representatives gathered for an impromptu meeting in Wollongong on Friday. 

The meeting came as a political row over protectionism emerged, with the Turnbull government saying a suggestion by Bill Shorten that governments should preference Australian steel in contracts would breach global trade agreements and jeopardise job growth in the new economy.

On Thursday, Mr Shorten called for a “nationalistic” approach on steel procurement. “A Labor government I lead would make sure we had genuine local procurement,” he said.

“Governments at all levels, council, state and federal government spend a lot of money on infrastructure. What's wrong with requiring Australian content in the steel?” The need for government action wasn’t lost on Illawarra councillors. 

“If we lose Whyalla’s raw steel production capability we add another nail in the coffin to raw steel production in Australia. The whole industry could fold,” Wollongong lord mayor Gordon Bradbery said in a statement, read by councillor Ann Martin at the meeting.

“We need stronger action on procurement to ensure that the Australian government actually use Australian steel in infrastructure projects.”  

Kiama councillor Neil Reilly – representing mayor Brian Petschler, who is overseas – said: “If we were to lose steel manufacturing in Australia we would be forfeiting a great deal of our sovereignty and I think that’s as scary as it can get.”

Shellharbour mayor Marianne Saliba said the council’s thoughts were with the Arrium employees.

“We understand what they are going through,” Cr Saliba said, adding many Port Kembla steelworkers lived in the Shellharbour area.

If Arrium’s Whyalla steelworks did close, it would leave Port Kembla as the only steelmaker in the country.