South Australian Treasurer Tom Koutsantonis wants to know why NSW has favoured Spanish steel instead of Whyalla

SOUTH Australian Treasurer Tom Koutsantonis wants to know why 6500 tonnes of Spanish steel is being used to construct a new railway line in Sydney instead of Aussie steel from Whyalla.

Press conference and Leaving by the stairs in the Parliament House balcony room. Treasure Tom Koutsantonis to give public apology over his behaviour related to the Gillman deal. Photographer Emma Brasier

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SOUTH Australian Treasurer Tom Koutsantonis wants to know why 6500 tonnes of Spanish steel is being used to construct a new railway line in Sydney instead of Aussie steel from Whyalla.

Mr Koutsantonis plans to raise the issue with NSW Treasurer Gladys Berejiklian at a Council of Australian Governments meeting in Canberra on Friday.

The SA Government will also use the COAG meeting to lobby the other states and territories to require Australian standard steel to be used in major public infrastructure projects.

More than 100km of railway tracks this week arrived in NSW from Spain, for use in the $8.3 billion Sydney Metro Northwest rail project.

“It is astounding that NSW has chosen to ship steel from Spain for this project at the very

time the Australian steel market is facing a most uncertain future,” Mr Koutsantonis said.

“The NSW Government should explain why Australian rail was not preferred for the Sydney

Metro Northwest project.

Tom Koutsantonis will ask his NSW counterpart on Friday why Spanish steel is being used for a new railway line in Sydney instead of Aussie steel from Whyalla.

This 6500 tonne supply contract should have gone to local steelmaker Arrium to support Australian jobs.”

Up to 1100 jobs at Arrium’s Whyalla plant are at risk as the struggling company tries to slash costs.

“It is essential to the sovereignty of the nation that Australia continues to produce its own steel

and all states need to do their bit through their procurement practices to ensure we have that

capacity,’’ Mr Koutsantonis said.

The Anti-Dumping Commission is due to report to the Federal Government during the next few days on whether Asian steel and aluminium is being imported into Australia at below “normal cost’’.

An adverse finding could lead to penalties being applied to imported steel.

Whyalla steelmaker Arrium has set a deadline of April 5 to save 1100 direct jobs as the company tries to slash costs.

NSW government procurement rules require tenderers to demonstrate how their tender will support local industry.