Federal Budget 2017: Government under pressure to use Whyalla steel in Melbourne to Brisbane railway

LABOR, the Nick Xenophon Team and the Greens have combined to demand the Federal Government ensure that Whyalla steel is used to construct the planned Melbourne-to-Brisbane inland railway.

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LABOR, the Nick Xenophon Team and the Greens have combined to demand the Federal Government ensure that Whyalla steel is used to construct the planned Melbourne-to-Brisbane inland railway.

The Federal Budget included $8.4 billion for the construction of the 1700km “steel Mississippi” rail line.

In Question Time, NXT MP Rebekha Sharkie accused Prime Minister Malcolm Turnbull of short-changing SA on infrastructure funding in the Budget and asked him to guarantee that embattled Whyalla steelmaker Arrium supplied steel for the railway.

Mr Turnbull ignored the question about steel but said his Government was making major infrastructure investments in SA, including funding for road projects, the proposed Port Augusta solar thermal plant and the construction.

“We have the largest commitment to defence — as to building a sovereign defence industry — in our nation’s history,’’ the PM said.

The Arrium steelwork facilities in Whyalla. The Federal Government is under pressure to lock in the use of steel from the steelworks for its multibillion-dollar railway. Picture: AAP

“We are building the largest commitment to sovereign shipbuilding capability in Australia and the bulk of that construction is in the Honourable Member’s state of SA.”

The budget included $3.1 billion in funding for SA infrastructure projects.

Labor manufacturing spokesman Nick Champion said he was disappointed the Government had not committed to using Australian steel in rail projects.

“This is a budget that sells out SA. Mr Turnbull must ensure Australian Standards for Steel are used in all Government-funded rail projects,’’ he said

“This will maximise Australian industry participation and protect Australian jobs.”

SA Greens Senator Sarah Hanson-Young will introduce a motion in the Senate to force the use of Australian steel.

Senator Hanson-Young, the Greens trade spokeswoman, said that would “not only give much-needed support to SA’s steel industry, but send a message to the steelworkers that this Government has their backs”.

“(This Government) talks about saving Australian jobs, yet do nothing when it comes to ensuring Australian infrastructure projects are built with Australian steel,” she said.

Originally published as Federal Budget 2017: Government under pressure to use Whyalla steel in Melbourne to Brisbane railway