Steel industry meets in Adelaide to combat “unfair trade practices and inferior imports”

NATIONAL steel procurement policy could be a reality by the end of the year, according to the State Government.

Blast furnace workers at BHP Newcastle. steel industry

THE State Government says a co-ordinated national procurement policy that promotes the use of high-grade Australian steel could be in effect by the end of this year.

Launching the inaugural Steel Summit in Adelaide on Tuesday morning, Treasurer Tom Koutsantonis said he is lobbying his interstate counterparts, as well as the Prime Minister, to adopt his government’s policy that mandates the use of Australian-grade steel in public projects.

While not precluding overseas producers from tendering for projects, such a condition will ultimately see demand for local steel increase, he said.

“Every industrialised country in the world should be making its own steel, but unfortunately our steel industry is at the mercy of cheap imported steel being dumped in Australia to try and destroy our industry,” he said.

“We cannot allow uncompetitive pressures to impact upon an industry that has provided decades of jobs and prosperity for SA.”

The State Government’s policy is effectively aimed at protecting jobs at Arrium’s OneSteel operations and local MP Eddie Hughes, a former Arrium worker and a major driver behind the summit, said national buy in of the policy is important.

“The SA Government is willing to lead the charge for the rest of Australia to get behind us,” he said.

“We need to bed down the policy at a federal level, but given the infrastructure spend that is going to happen in the coming years, it will make a very positive input to my community.

“(The) best case scenario (for an Australia-wide policy) is later this year.”

The State Government’s policy relates only to public projects, however, Mr Koutsantonis said he “very strongly encourages” all private projects in SA to use the highest grade Australian steel.

“They’re required to use the Australian standard, but unfortunately we’ve found cases where steel is being certified as being of the highest Australian standard, but it’s not,” he said.

Whyalla’s acting mayor Tom Antonio recently lashed out at the State Government, saying that for too long the region has lacked an effective political voice. He said that if the State Government was serious about helping Whyalla, it would source only local steel for its $160 million O-Bahn project.

“Here is an opportunity to make good on their word,” he said.

Mr Koutsantonis said using only Whyalla steel for the project was not possible because of the “nature of the engineering and infrastructure”.

Both Mr Koutsantonis and Mr Hughes declined to comment on how the steel industry would benefit if SA became home to a nuclear waste dump.

Arrium, the owner of Whyalla’s steelworks, will issue its half yearly results tomorrow, which may include further cost-cutting measures.

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