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Category: Steel / States and Territories / Government and Politics / Bill Shorten

Use Australian steel and save Whyalla: Shorten

Friday, 19 Feb 2016 04:38:24

The mothballing of Whyalla steelworks is a possibility if Arrium's financial situation does not improve. (ABC News: Nick Harmsen)

Prime Minister Malcolm Turnbull should guarantee the future of the Whyalla steelworks in South Australia by using more Australian steel in public projects, Opposition Leader Bill Shorten has said.

Key points:

  • 1,000 jobs at risk if Arrium decides to mothball the Whyalla steelworks
  • Bill Shorten writes to PM about the steelworks' future
  • Labor pushes for Australian steel to be used in government projects

The Government should also speed up an inquiry into the dumping of cheap Asian steel in Australia, he said in a letter addressed to Mr Turnbull.

Mr Shorten expressed a similar sentiment in a letter to the Prime Minister last October over the Port Kembla steelworks.

"Had your Government acted on this issue four months ago when Labor first raised these issues, your Government would now be proposing action rather than further reviews," he wrote.

More than 1,000 jobs are at risk if Arrium, the owner of the Whyalla steelworks, proceeds with a proposal to mothball it, which is a possibility if the company's financial situation does not improve.

Arrium this week recorded a half-year net loss of $236 million, with the Whyalla steelworks posting a $43 million loss.

Hundreds of jobs have already been axed at the plant.

South Australian Treasurer Tom Koutsantonis on Thursday said the State Government had been in talks with the company and taxpayers' money would have to be used to support the steelmaker if the Government decided to help.

He echoed Mr Shorten's push to buy Australian steel before cheap imports.

"There are procurement policies around the country that are hurting Arrium," he said.

"There are inefficiencies at the plant, the kiln is getting old, the cost of energy, the cost of resources and then of course its location and its port and the efficiency of the port."

Mr Shorten said the Government also needed to provide money to help expand Whyalla's port.

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