Blame game erupts over Chinese steel deal for West Gate Tunnel

Daniel Andrews and the West Gate Tunnel builder have both tried to dodge blame on a deal that will see Chinese steel imported for the West Gate Tunnel, despite a local content promise.

Premier Daniel Andrews has accused the West Gate Tunnel builder of failing to give Australian manufacturers enough notice to produce steel for the $6.7 billion project.

But construction giant John Holland said it ran a nine-month procurement ­process for local material and had been unable to source the “unprecedented amount of fabricated steel needed”.

The Herald Sun revealed this week that Chinese manufacturer ZPMC would provide 15 per cent of fabricated steel for the WGT, after striking a deal with the project builder.

John Holland and ZPMC are both owned by the China Communications Construction Company.

Mr Andrews said the tunnel contract “is very clear” that 92 per cent local material must be used in construction.

At a Public Accounts and Estimates Committee hearing yesterday, Mr Andrews said the builders “haven’t given local manufacturers, Australian steel manufacturers, enough time to scale up to ­fulfil that order.

Construction of the West Gate Tunnel. Picture: Wayne Taylor

“Then they have said, ‘Well we can’t supply it locally so we will have to go offshore’.

“I’m disappointed because when we make commitment about local content we expect that they are honoured and they haven’t been in this case,” Mr Andrews said.

Nationals MP Danny O’Brien slammed the Premier for his “broken promise” and asked why Victorians should believe pledges about Australian content on other projects.

He also grilled the Premier about sanctions, but Mr ­Andrews said it was not an ­appropriate forum to discuss potential penalties.

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Last night, a spokeswoman for John Holland said the company had run a nine-month procurement process to source local steel.

“After that process, the Australian market has been unable to meet the requirements to supply the unprecedented amount of fabricated steel needed for the West Gate Tunnel project,” she said.

“We will continue working with the Australian steel ­industry to maximise opportunities for local suppliers.”

The spokeswoman said the West Gate Tunnel project was “using more steel than any project in Australia”.

The union representing steel workers, the AWU, has attacked John Holland for doing a “dirty deal” with its own parent company.

The tunnel is due to be ­finished by 2022, and will ­connect the West Gate Freeway to CityLink.