West Gate Tunnel builder may be fined for using foreign steel

Transport Infrastructure Minister Jacinta Allan has said fines are being considered for the builder of the West Gate Tunnel, who broke the state government’s guarantee to use 92 per cent local steel on the project.

The builder of the West Gate Tunnel could be slapped with financial penalties after breaking local content promises.

The Herald Sun revealed last month that the builder, made up of CPB Contractors and John Holland, would import 33,000 tonnes of Chinese steel for the $6.7 billion tunnel.

Transport Infrastructure Minister Jacinta Allan. Picture: AAP

It will break the state government’s guarantee to use 92 per cent local steel on the project.

Transport Infrastructure Minister Jacinta Allan told a parliamentary hearing on Wednesday that penalties would be considered.

“We are looking at all of our options under the existing contractual arrangements to deal with this issue,” she said.

“We are very disappointed on the recent development on the steel order.”

Ms Allan refused to detail exactly what “options” the government was considering, saying she did not want to “telegraph our next move”.

About 135,000 tonnes of Australian-made steel, including 125,000 from Liberty Steel, will be used on the tunnel.

But a further 33,000 tonnes of steel will be imported from China’s state-owned Chinese company, Shanghai Zhenhua Heavy Industries, in what the Australian Workers’ Union has labelled a “disgrace”.

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Premier Daniel Andrews told an earlier parliamentary hearing that about 85 per cent of the steel would be local.

Ms Allan added on Wednesday: “We are wanting it to be as high as it can possible be.

“If it can be higher than 85 per cent, then we are pursuing that strongly.”

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