House debates

Thursday, 13 October 2011

Adjournment

Steel Industry

11:53 am

Photo of Stephen JonesStephen Jones (Throsby, Australian Labor Party) Share this | | Hansard source

I take this opportunity to update the House on circumstances surrounding the steel industry in my electorate of Throsby, in particular the circumstances surrounding BlueScope at Port Kembla.

It would be known to members in this place that nearly two months ago the company advised the stock exchange and the government that it proposed to restructure its operations and exit the export market for steel and that, as a consequence, it would be closing down the No. 6 blast furnace and significantly reducing its workforce. In the time since that announcement and last week, representatives of the workforce, principally the Australian Workers Union, the metalworkers union, the Electrical Trades Union and others, have been engaged in negotiations with representatives of BlueScope management, and I am very pleased to say that those negotiations have resulted in an outcome that is acceptable to both parties. I would like to pass my congratulations to the officials from the AWU, particularly the Port Kembla branch secretary, Andy Gillespie, and his assistant secretary, Wayne Davies, on managing to save 93 jobs as a result of those negotiations with management. Their work has ensured that, although approximately 920 workers will be facing redundancy, there will be no forced redundancies. An enhanced redundancy package was also put in place for the benefit of those workers. This is a sensational outcome. It is worth noting that this was all possible because of the reform to the industrial relations system that the government put in place upon winning office in 2007. These arrangements were all put in place without a day's work lost through strikes or stoppages under the Fair Work Act. So I would like to congratulate the steel industry unions in particular but all parties to the negotiations on that outcome.

Of course, it now falls to BlueScope to restructure its operations to ensure that, as it focuses on the domestic market, it has a viable steel production and fabrication business here in Australia. We are all familiar with its world-famous Colorbond product. BlueScope is investing now in research and development into new products. Of course, this underscores the importance of the steel transformation plan, which passed through this House yesterday, regrettably not with the support of those who sit on the opposite side of the chamber. It is a $300 million package.

Mr Tehan interjecting

Photo of Maria VamvakinouMaria Vamvakinou (Calwell, Australian Labor Party) Share this | | Hansard source

Order!

Photo of Stephen JonesStephen Jones (Throsby, Australian Labor Party) Share this | | Hansard source

The member for Wannon makes a lot of noise on this—empty drums make the most noise, Madam Deputy Speaker; we are all aware of that. The $300 million steel transformation plan has absolutely nothing to do with the revenue generated by carbon pricing. It is separately funded, so it would have been feasible for those opposite to vote in favour of this and still maintain their 'head in the sand' opposition to the Clean Energy Future package of legislation. But they did not. I continue to invite them to change their position and explain why this measure is incredibly important to the future of the steel industry in the Illawarra.

I and the member for Gilmore appeared on local radio this morning to explain why we had adopted the positions we had on the steel transformation plan. The member for Gilmore said she voted against it because she did not understand it. You would have thought that a member who is charged with the responsibility of representing those constituencies in her electorate would have put a bit more effort into understanding the legislation before the House. It is critical that the opposition review their position. The workers in the Illawarra are very keen to understand whether those opposite are going to withdraw their mindless—

Opposition members interjecting

Photo of Maria VamvakinouMaria Vamvakinou (Calwell, Australian Labor Party) Share this | | Hansard source

Order! I am having difficulty hearing the member for Throsby.

Photo of Stephen JonesStephen Jones (Throsby, Australian Labor Party) Share this | | Hansard source

It is very important that those opposite make a clear position on this. If they are elected to government, will they cease and desist from the future payments through the steel transformation plan to steel industry employees? Will they cut them off? Steel industry employees need certainty to ensure that they can restructure and reinvest and to ensure that we have a viable steel industry in this country. The big axe hanging over their heads is the position adopted by those opposite.