Ann Sudmalis (Gilmore, Liberal Party) Share this | Hansard source

How many of us remember, in sixth class at primary school with teachers and classmates, taking the long-haul bus trip from Sydney to Port Kembla? Quite a number of years ago, this was the highlight trip for students. I recall this experience, with the frightening energy of the blast furnaces and the overwhelming heat as we observed molten metal being poured from enormous buckets into the ingot moulds, and then watching in complete awe as this was rolled and squashed and shaped and formed. There were hundreds of people, all dedicated, busy and watchful, to make sure none of their coworkers or the overexcited children came to any harm.

In recent years we have seen major changes to the steel industry, and each time the steelworkers have shown gutsy courage in devising options to retain this iconic industry. During the 1980s the mill was hit by recession, world oversupply and competition. The workforce in 1981 was estimated to have been around 20,000 employees. By 1984 that had dropped by 35 per cent. At that time it was noted that there were structural weaknesses in Australian manufacturing, including small and scattered plants that were cost-inefficient. There were entrenched union and management attitudes, high wage costs and not enough investment in research. By 1990 Port Kembla was producing 3.5 million tonnes and employing only 9,500 people.

Wayne Phillips was a warrior for the steelworks back then and, to his credit, he has been an outstanding warrior and advocate in the 2015 discussions with BlueScope Steel. The situation in the eighties and nineties has evolved to the current, more positive, approach, which will assist the potential for our steel industry to stay. In May of 2012 there were indicators in the face of economic change. The steel mill was yet again facing difficult times. There have been initiatives that have changed the aspects of steel production that have become profitable and very sustainable. Colorbond would be one of those iconic steel industry developments, from its early history in the sixties to its present-day market dominance and profitability. Perhaps with Australian ingenuity there is another steel based product just around the research corner, especially with more research.

But we know that employment numbers cannot ever fully recover when we read reports of how the work has been carried out in more recent years. Instead of having hundreds of workers on the manufacturing floor there are watchtower control rooms with guiding computers and control equipment. The much reduced staff numbers watch and monitor all the screens, dials and adjustment devices.

A big part of the problem for steelmaking actually has nothing to do with the mill or the workers themselves; it is the fluctuating world prices of coal and iron ore, and the strong dollar. The value of the dollar has only recently dropped, but it was close to parity for such a long time that it truly affected the bottom line. Manufacturers of any size, be they small, medium or large, are at the mercy of the dollar, and it can often make or break economic survival.

Paul O'Malley, BlueScope Steel's Chief Executive, has worked tirelessly with Wayne Phillips, Arthur Rorris and the entire union membership. Last week the unions made a decision, probably one of the hardest that any union could make. It was a compromise. There will most likely be job losses of around 450 to 500. I have every sympathy for those who will be affected. However, it has meant that negotiations to retain the 4,500 jobs that are still there are still in the mix with the BlueScope board. As an outsider but one who cares what the possible outcomes could be if the mill at Port Kembla closes, I think the result of last week's meeting is commendable. The unions have negotiated wage freezes, loss of bonuses and ultimately some job losses. This is yet to be fully voted upon, but it has enabled the next step to take place. It must have been a terribly difficult decision.

There are Labor members in parliament who would say that the federal government needs to alter procurement, but I do not think procurement is the only answer. If it were, it would have been done back in 2012. There is no way we can put in the initiatives of other industries, because they affect a competitor industry, and the quick-fix solution is often not a solution at all.

The steelworkers have put their best foot forward. The Minister for Industry, Innovation and Science will have a meeting on 26 October. This is part of the plan to go forward. The solutions for the Illawarra region and the steelworkers will be the positive discussions with all levels of government, the workers and management, developing a strategy to go forward as a true bipartisan plan that will enable our local industry to remain, including the strengthening of antidumping laws, which is of critical importance. Our region needs this compassionate economic compromise approach to help our steelworkers and the mill, which is an icon for us all, and to develop a plan for the next transition in such a significant industrial area.

Debate adjourned.

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