KIAMA council has formally pledged to offer its support to the Australian steel industry where possible.
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Council previously endorsed strong support for the retention of the regional steel industry and for a bipartisan and co-ordinated response to the employment issues arising from the current economic impacts on the Illawarra.
Council subsequently received a letter from a group of Illawarra residents seeking council’s position on the use of 100 per cent Australian steel in their project and maintenance work.
According to a report to Tuesday night’s council meeting, it was noted that council has adopted a local preference policy to achieve best “overall value for money” in its procurement of goods and services, while (when possible) giving preference to local suppliers, and non-local suppliers using local content, to support the municipality’s economic development.
A five per cent price differential is given to local suppliers and materials when an assessment is being made.
“In the spirit of council’s local preference policy and in support of a major regional industry which has a large number of associated employees, a policy which aims for council to procure 100 per cent Australian-made steel has merit,” council’s report stated.
“While council projects generally do not involve significant quantities of steel and it is understood that not all steel types are manufactured in Australia, it is proposed that council specify preference for 100 per cent Australian steel when practicable and available, on future projects and maintenance works.”
At Tuesday night’s meeting, a motion was successfully moved that in view of the national, state and regional importance of the Australian steel industry and the strategic need to protect the ability to produce steel in the Illawarra, council support two proposals.
The first was the implementation of a protective tariff for steel production in Australia (as allowed under WTO rules) to help prevent the dumping in Australia of steel manufactured in other countries, with such a tariff structure to include appropriate protection for Australian steel users in terms of local prices for such steel products.
The second was the adoption of a policy to give preference to Australian produced steel products wherever possible in projects undertaken by council.
Kiama Mayor Brian Petschler said this was an issue with great regional significance, and would affect residents of the municipality employed at the Port Kembla steelworks.
“It’s clear that the domestic steel industry is a strategic industry that we should try and protect,” he said.