Posted on 15 Jun 2016
The Australian steel industry has moved to turn up the political heat on federal election candidates, calling for a stronger anti-dumping regime and for local steelmakers to be given more opportunities to bid for work on major projects.
The Australian Steel Institute has written to all candidates in steel-sensitive seats, arguing that procurement rules for government projects should take into account the economic benefits of using local product.
It has demanded an answer by the end of the week from candidates in a bid to shine a spotlight on their positions.
The industry has been under pressure because of a global oversupply, which has seen steel being dumped on the international market. The troubles facing the industry were heightened by the collapse of Arrium, which is currently in administration.
Much of the oversupply is being driven by China, which has about 300 million tonnes a year of overcapacity and is exporting about 120 million tonnes of steel a year.
The industry argues non-conforming steel products have been entering Australia, posing a “significant risk to both safety and productivity in the construction industry’’.
ASI chief executive Tony Dixon said the industry had identified four areas vital for the ongoing health of the industry.
“The Australian steel value chain is facing significant headwinds and the ASI believes that a bipartisan recognition of the importance of a domestic industry along with sensible policies that demonstrate this, while at the same time meeting our international obligations, is critical to the long-term health of the industry,’’ Mr Dixon said.
The ASI’s letter calls for steel and steelworks to be independently verified through established certification schemes. Other elements of the plan include enforcing the Australian Jobs Act to ensure the local industry is accorded a “full, fair and reasonable opportunity” to bid on major projects and that the extent of local engagement is transparent.
The industry argues that some overseas tenderers receive an advantage as they do not factor in the full cost of Australian standards and many are subsidised by foreign governments.
There is also an “unhealthy focus’’ on least-cost tendering, which does not take into account whole-of-life assessments such as maintenance and rectification.
Australian Workers Union national secretary Scott McDine backed the ASI move to seek commitments from political candidates ahead of the election.
“The world is being flooded with cheap, low quality steel and it’s high time Australian politicians understood that this market is completely distorted by dumping and anti-competitive behaviour,’’ Mr McDine said.
