Posted on 03 Feb 2009
A KEY union has called on Kevin Rudd to follow the
AWU national secretary Paul Howes said free-trade agreements needed to take a back seat to job protection in the face of the deepening global financial crisis.
US President Barack Obama's administration has fuelled fears of a trade war by mandating the use of American steel in infrastructure projects as part of its $1.29 trillion stimulus package for the US economy.
Yesterday, Mr Howes told the AWU conference on the Gold Coast the Federal Government should also resort to protectionism.
"I believe in free trade, but I also believe this is an unprecedented crisis and requires an unprecedented response," he said.
"Why should Australian taxpayer dollars go towards protecting the jobs of Indian steelmakers or Brazilian aluminium makers?
"I strongly believe we can honour our free-trade agreements, but also ensure that government procurement policy is drafted in such a way that Australian workers come first."
Mr Howes said Australian steel exports had dried up and it made sense for local materials to be used in infrastructure projects.
"We've never had a situation where we couldn't sell our steel at any price to anyone," he said. "(But) our steel plants are empty, our aluminium plants are empty, we have no customers for our products.
"We need local-content rules for this period of this crisis that gives our manufacturing industry a boost and fuels the infrastructure that our nation needs."
But Treasurer Wayne Swan rejected the union's call.
"We can't as a globe, and we can't as a nation, return to those old protectionist practices which have the potential to make this global recession much worse," Mr Swan told ABC Radio.
Mr Howes urged the Federal Government and private sector to "dream big" on infrastructure projects such as inland rail links and a water pipe- line from
He said the Reserve Bank of
"This is the most effective way to provide immediate relief for struggling families," Mr Howes said. "Whatever the Reserve Bank delivers, we expect and demand that the banks pass on the cut in full and quickly. No ifs, no buts."
