Federal Labor’s $100 million pledge for South Australian steelmaker Arrium shouldn’t put noses out of joint in the Illawarra, said campaigner Arthur Rorris.
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Labor leader Bill Shorten said the rescue package would secure 3500 jobs.
"Labor will not leave the workers of Arrium and their community on their own to face the unfolding challenges in the global steel market," Mr Shorten said.
The $100 million would be a combination of a $50 million grant and $50 million loan, and would come on top of a further $50 million from the state Labor government.
When BlueScope was working to keep the Port Kembla steelworks open, neither major party came forward with offers of funds.
The NSW government did allow the company to defer payroll tax for the next three years – but BlueScope still has to pay that back.
South Coast Labour Council secretary Mr Rorris said the Illawarra shouldn’t feel snubbed that BlueScope did not get the same financial help now being offered to Arrium.
“You can’t compare the position of Arrium with BlueScope,” Mr Rorris said.
“Clearly there is an immediate crisis in Arrium’s position, being in administration. That is not comparable to where BlueScope is, or was at last year.”
Mr Rorris said the $100 million offer from Mr Shorten was “welcome” but didn’t go far enough.
“The announcement falls very short of what is required to secure the Australian steel industry in the medium and long term,” he said.
“Labor has failed to commit to substantially reform steel procurement policy and lags far behind their NSW Labor colleagues, the Greens and the Nick Xenophon Team that have all backed in major reforms to ensure the use of Australian-made steel in publicly funded projects.”
Mr Rorris said it was beneficial for BlueScope that Arrium continued to make steel.
“We are one steel industry here and we need both plants to survive to ensure the greatest possible outcome for our industry in the long term,” he said.
