The NSW government is considering changes to steel standards – aimed at maximising the use of Australian-made material – as it moves to help the Illawarra’s steel industry.
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But, what are steel standards and how will they make a difference to the industry?
The state government contracts much of its infrastructure building work and, in doing so, will ask a particular company to deliver a project.
“At the moment it’s largely up to those contractors to deliver that project as cost-effectively and efficiently as they feel they can,” explains parliamentary secretary for the Illawarra Gareth Ward.
“Many of those contractors are using steel which is imported from other countries, which isn’t as high quality as that produced in Australia.”
Mr Ward, who is also the Liberal Member for Kiama, is behind a push for the government to insert steel standards in its contracts to create a “fair playing field”; one that takes into account quality as well as price.
While the government is yet to make a firm commitment on what industry changes would be made, the state’s Finance Minister Victor Dominello said it was an option being considered.
Following a forum in Wollongong on Monday, Mr Dominello has directed the government’s procurement board to work with the Australian Steel Institute to determine ways to modify procurement processes.
“I imagine and I hope that one of the options would canvas issues concerning quality, because that was a significant talking point [at Monday’s forum],” he said.
The implementation of steel standards would see the government specify the grade of steel required for use in its projects.
As a result, steelmakers like BlueScope get “a far better deal and far better opportunity to compete” and taxpayers get “better quality products that last longer”, according to Mr Ward.
“If you look at things like whole-of-life and compare whole-of-life costs of Chinese steel versus Australian steel, Australian steel is better value for money over the longer term,” he said.
“By saying to contractors ‘these are the standards we want you to use’, Australian companies are more likely to meet that standard.”
A Steel Industry Protection Bill (SIPB), devised by Labor and the Greens, calls for a mandated 90 per cent use of Australian-made steel in government projects.
The SIPB failed to reach a vote in the Legislative Assembly and has now lapsed.
Andrew Pearson
Andrew grew up in the western Riverina town of Hay and has strong ties to the region. He is a former DA journo who has a passion for breaking news and has covered everything from council and politics to crime and court.
Andrew grew up in the western Riverina town of Hay and has strong ties to the region. He is a former DA journo who has a passion for breaking news and has covered everything from council and politics to crime and court.
