Senate debates

Tuesday, 11 October 2011

Questions without Notice

Steel Industry

2:35 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | | Hansard source

Are you a 'Ruddite' or a 'Gillardine'?

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

Have some respect. Given the pressures of a high dollar and a tough global economic climate, can the minister inform the Senate—

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Singh, resume your seat. When there is silence we will proceed.

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

Given the pressures of a high dollar and a tough global economic climate, can the minister inform the Senate what action the Gillard government are taking to support jobs in Australian steel?

2:36 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I thank Senator Singh for her concern, a concern which I recall was raised by Senator Fierravanti-Wells some months ago. I recall her asking me what I would say to the people of Wollongong, people she said were concerned about their jobs. I actually did go to Wollongong. We went there with a real plan—the Steel Transformation Plan—a plan backed by some $300 million, a plan that will be locked into legislation. We will of course help provide the wherewithal to ensure that there are steel jobs in the Illawarra for decades to come—a plan I notice that the opposition are refusing to support. The opposition have made it perfectly clear that they have no intention of supporting such a plan. We heard the same thing when the Liberal Party went to the Steel Institute. We have seen the Leader of the Opposition put that proposition. What they are really about is finding $70 billion to cover the black hole they have in their budget. The Leader of the Opposition has indicated that as part of seeking to find that money he will tear up the Clean Energy Future plan.

We heard the member for Sturt just yesterday say that the opposition will be voting against the carbon tax, and this package of legislation includes the Steel Transformation Plan. They are quite happy to appear on TV every night, standing next to people in fluoro vests, but they are not prepared to actually back those people. They are not prepared to do anything to actually help them. What they are prepared to do is push forward measures to make it easier to sack those people and to strip away investments. Every night on TV we see their crocodile tears for workers in manufacturing, but when it comes to actually doing something to help people, they vote against it. The only thing they are interested in is crawling over the jobs of Australian workers. (Time expired)

2:39 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a supplementary question. How does the minister respond to calls for Australia to build jobs on the new frontier of green technology?

Opposition Senators:

Opposition senators interjecting

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I could remind those opposite that the member for Wentworth told us just yesterday that there were quality jobs at stake in this global transformation. The member for Wentworth seems to have got the message about green jobs and the importance of the transformation of the Australian economy. But his party leader told us just last month that 'there is no way on God's earth that you can have a solar powered steel mill or a wind powered manufacturing plant'. When we turn that around we see that the member for Wentworth is actually saying that you cannot have wind turbines without steel, you cannot have solar plants without steel and you cannot upgrade the farms, factories and homes of this nation without steel. We are in the business of making sure that the steel is made in Australia. We want to make sure that people have opportunities to claim the rightful prosperity that is theirs. They want to enjoy the benefits of living in a society where that prosperity is properly shared. (Time expired)

2:40 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. What is the minister doing to raise the level of local steel in major resource projects?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

The government's position is very clear. We argue that whatever the level of localisation of resources projects is, it is not enough. We want to ensure that we have the highest possible level of Australian participation in the development of our resources. That is why we announced last week that major federal grants of $20 million or more, including grants to the states and territories, will be contingent upon maximising opportunities for Australian businesses.

We have also required future project developers to publish more details of opportunities for local firms if they want to receive tariff concessions under the Enhanced Project By-law Scheme. Australian firms should be given the opportunity for full, fair and reasonable participation to compete for work both at home and, we argue, overseas. The Leader of the Opposition saw fit to support these measures—through the sides of his mouth—but on the same day, the shadow minister for industry took the view— (Time expired)

2:42 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. I refer to Prime Minister Gillard's statement of 13 September 2011 that the government's Steel Transformation Plan is 'a bridge to build resilience and competitiveness' in the Australian steel industry. Can the minister confirm that over 80 per cent of steel industry workers are employed in businesses other than BlueScope and OneSteel and that none of those firms qualify for assistance under the Steel Transformation Plan?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

It would help if Senator Colbeck were actually supporting these measures. If he was actually serious about supporting steel innovation and supporting the steel industry, he would be supporting this scheme. But he is not. This is a clear example of the Liberal Party's view that it is all right to scramble to office on the back of cheap publicity around their alleged sympathy for workers in manufacturing without being prepared to do anything about it.

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! On both sides, the interjections do not help in listening to the answer.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

The $300 million Steel Transformation Plan will encourage investment, it will encourage innovation and it will encourage competitiveness for the Australian steel manufacturing industry. It will help transform the industry through increasing efficiency and by ensuring that the industry is economically sustainable in a low-carbon economy. The additional support is coming through various investments through the Jobs and Competitiveness Program and through our research program—where we see, for instance, that the CSIRO is working closely with BlueScope Steel and other steel manufacturers to develop opportunities for further innovation in the industry. It is not just a question of the $300 million we are providing through this scheme but of the hundreds of millions of dollars that are being provided through a whole range of measures that this government is committed to.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

No.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

It is billions of dollars, Senator. You are actually voting against billions of dollars in support for manufacturing in this country. You cannot have it both ways. If you vote against the support, you have to wear the responsibility for your turning your back on manufacturing workers of this country, and that is precisely what you are doing. There are billions of dollars in support provided to manufacturing workers through this steel innovation council, through the steel transformation scheme and through the various measures this government is proposing to pursue through this package of legislation coming into the Senate shortly.

2:44 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

Mr President, I ask a supplementary question. Given that the Gillard government cannot agree as to whether its proposed Steel Transformation Plan will last four, five or six years, will the minister now concede that the government can give no indication of compensation to the steel industry beyond 2015-16 and that the entire funds of the plan could be exhausted within just one year and one day?

2:45 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

Senator Colbeck, I just want to be clear about this. You are saying you will not support the industry getting any money at all, and you want to argue the toss about how many years the support goes for. It is an extraordinarily contradictory position. Do you support this scheme or don't you? Do you support providing assistance to the steel industry or don't you? Do you support steelworkers or don't you? These are pretty fundamental questions, Senator, and so far all I have heard from you is that you do not. You are turning your back on the steel industry of this country. You are turning your back on workers of this country.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | | Hansard source

Mr President, I rise on a point of order on direct relevance: the minister has obviously gone nowhere near the question. He was asked a narrow, specific question: will the compensation under the plan run beyond 2015-16? He has not even approached that question.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

The minister has 27 seconds remaining to answer the question. Minister, I draw your attention to the question.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

The question is about whether or not we will provide assistance for the out years, and the answer is that we will. We are providing assistance through a range of measures. We are providing assistance on the basis of there being innovation undertaken within the steel industry. We come back to the simple proposition: do you support a steel industry in this country or don't you? All I hear so far is: no, you do not. You do not support workers of this country. You do not support manufacturing. What you do support— (Time expired)

2:47 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

Mr President, I ask a further supplementary question. Can the minister explain why BlueScope is expanding its operations and its workforce in countries like Indonesia but at the same time pulling back its operations and expansion in Australia? Was Prime Minister Gillard fully aware of the devastating impact the carbon tax would have on Australian industry when she promised there would be no carbon tax under a government she leads?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I have explained that we are providing $300 million of assistance, which is out over the five-year period; I have explained that we are part of a broader set of measures that are not just confined to the $300 million; and all I have heard from those opposite is that they will not support it. What I have also heard from BlueScope and from OneSteel is that decisions in regard to the redundancy have absolutely nothing whatsoever to do with the question of the climate change legislation. They were very explicit about that, very direct and very much to the point. It is a pity you did not hear them.

But workers of this country are now listening to you, and they want to know where you stand in terms of your support for the working people of this country. All I have heard so far is that you are not prepared to back the steelworkers of this country and you are not really prepared to back manufacturing workers of this country. All you want to do is to move the legislation to make it easier to sack them. Your only interest in blue-collar workers is whether or not you can get a cheap headline for the short term. You have no interest in the long-term future of working people of this country. (Time expired)