NSW Metropolitan Roads Minister Natalie Ward has said that local steel would be used wherever possible in major infrastructure projects, but declined to commit to a target.
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Minister Ward visited the BlueScope Port Kembla steelworks on Friday, to see in person the steelmaking process that will supply the girders and trusses for projects such as the Sydney Gateway, WestConnex and M6.
"The infrastructure boom can only be completed with the support of this local manufacturing, this steel is fundamental," she said.
Minister Ward said that while the government aimed to include local products in these projects, suppliers would at times need to be found elsewhere.
"We always try to preference and prioritise local jobs, local manufacturing, local maintenance, local servicing and local build wherever we possibly can. Sometimes that's just not possible or available."
Minister Ward cited the difficulties of sourcing products during COVID and the current pressures on supply chains as to why products in major infrastructure projects may need to be sourced interstate.
"Targets, I think, seem like something that's good in theory, but if you can't actually get to that target, it's going to hold up a project," she said. "Ultimately, we want to get the projects delivered."
On Thursday, NSW Labor committed to increasing tender weightings to 30 per cent for local content, and mandate 50 per cent local content in future train contracts.
Corey Wright, state secretary of the NSW Manufacturing Workers Union said that by mandating local content, projects would be completed on time.
"The constant offshoring of the past 11 years hasn't benefited our state: It's given us projects that are over budget, delayed and not fit-for-purpose when they arrive in the country."
With the 2022 NSW Budget setting aside $1.2 billion for new renewable energy projects, Illawarra advocates are putting forward the region's strengths to build the poles and wires needed to rebuild the electricity grid.
"The significant investments in renewable energy will present exciting opportunities for regions like ours that are designated Renewable Energy Zones with $1.2 billion set aside for new transmission projects and $250 million to support the manufacture of renewable energy infrastructure, electrolysers, electrification of plant, and electric vehicles," Business Illawarra executive director Adam Zarth said.
Minister Ward said that "wherever possible" the investment in renewable Energy Zones would support local manufacturers.
"We're setting up those areas as our priority for manufacturing and making sure that we're supporting the industry in those areas. Wherever possible across the board we do try and buy locally, because that just makes perfect sense."
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