Labor is persisting with a 90 per cent mandated steel target despite the city’s steelmaker being cold on the idea.
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Part of NSW Labor’s policy platform heading into the March 2019 state election is a promise to ensure government infrastructure projects use at least 90 per cent Australian-made steel.
The definition excludes imported steel that is value-added in Australia – a process the current government had counted as "Australian steel”.
It’s a target the party had adopted in the wake of the 2015 steel crisis as a way of protecting the industry.
“The 90 per cent was set by Labor speaking with industry stakeholders, producers and fabricators and we think that was a reasonable benchmark to be set," Wollongong MP Paul Scully said this week.
“We would hope that at every possible opportunity a construction company or fabricator would seek to exceed that 90 per cent.”
Mr Scully conceded there would be an added cost to government from mandating Australian steel.
He said a Labor-commissioned IBS Shrapnel report looked at the Liberal government’s infrastructure expenditure at the time and estimated that extra cost to be around 0.2 per cent.
But BlueScope prefers allowing it to compete on a level playing field rather than being given a leg-up via mandated minimums.
“We want to ensure a level playing field and that Australian companies get a fair go when it comes to winning contracts,” a BlueScope spokesman said.
“We support policies to ensure steel products used in Australia meet quality and safety standards.
“We also believe government procurement policies should take into account the economic and social benefits of purchasing locally made goods.
“And it is important that designers use project specifications that allow Australian products to compete on a level playing field.”