Steel Industry

Mr HUGHES (Giles) (14:24): My question is to the Treasurer. Can the Treasurer inform the house what action the government has taken to assist our steel industry and any support received for those initiatives?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:24): I want to thank the member for Giles for his personal commitment not only to the city of Whyalla but also, of course, to the steel industry. South Australia is again leading the nation on industry policy by ensuring all state government projects use steel that meets Australian standards and certification requirements. This policy gives our local industry a competitive advantage against lower quality imports, many of which are being dumped here in Australia from Asian steel mills.

Funding of $4.3 million has just been committed over the next four years to ensure that contractors comply with these requirements and to assist local steel fabricators to meet the up-front costs of achieving certification standards. The steel industry participation initiative will ensure that all South Australian government projects include contract conditions specifying that steel must be sourced from mills with Australasian certification authority for reinforcing and structural steel and that steel must be sourced from steel fabricators independently certified to the recently created National Structural Steelwork Compliance Scheme.

The industry participation weighting has also been increased from 15 to 20 per cent of the overall tender assessment criteria for state government projects where a significant amount of steel will be used on the project. An industry advisory panel has been established to provide support and guidance to the Industry Participation Advocate—who has done an excellent job, and I pass on my congratulations to him—in the implementation of these measures and to oversee the effectiveness of the grant programs.

To further raise the importance of these initiatives, the Industry Participation Advocate hosted a steel summit last week. In attendance were designers, architects and engineers as well as steel fabricators, welders and others in the steel industry, as well as myself and the member for Giles. The government outlined the new requirements for certification and compliance on South Australian government projects and promoted the small grants program.

The summit was also an opportunity to urge the commonwealth and other states to adopt similar supportive procurement policies. What has been the reaction to our initiative? Let me quote Arrium Executive General Manager, Steel Manufacturing, Mr Neil Gibson, who said:

I again fully commend the South Australian government. They have been the most proactive government that we're working with in Australia and these policies are going to be good for us.

The acting Whyalla mayor, Mr Tom Antonio, highlighted the importance of the federal government getting on board our campaign, saying:

I really take my hat off to Tom and his team and I hope that every side of every party gets behind this initiative and we support it.

Sorry, sir—the Premier's team, of course, I'm talking about. Senator Nick Xenophon also urged other governments to take up the South Australian policy, saying:

The South Australian government's recently mandated approach requiring Australian…steel on government projects is a template New South Wales and the commonwealth should follow.

Further, yesterday the federal Senate passed a motion, moved by South Australian Senator Xenophon and sponsored by Labor Senator Kim Carr, that calls on the commonwealth to support the Australian steel industry. The motion that was passed with the support of government senators calls on the federal government to, amongst other things, ensure that all taxpayer-funded infrastructure projects be supplied with steel made with the Australian standard.

The motion also recognises the South Australian government's procurement policy as a best practice model for third-party certification to ensure steel used is independently tested to Australian standards. I urge all members of the chamber to join our campaign and support our steel. Go to our website supportoursteel.com, pledge your support and get all other governments to get on board and adopt South Australia's procurement policies.

The SPEAKER: Supplementary, deputy leader.