Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Hansard source

I thank Senator Madigan for his question and acknowledge his longstanding interest in this matter, and I thank him for providing me with some notice about the question. The Australian government is aware of the pressures on the Australian steel industry, particularly given the tougher economic conditions in China and the resulting oversupply in the global market. The government is working closely with the steel industry to deal with these issues, with a focus on the long-term future for Australian manufacturing and jobs. However, successive governments have found that restoring high tariffs is not a sustainable option for the development of Australian industry, as high tariffs impose additional costs upon both producers and end consumers, slowing productivity growth. Raising barriers to trade could result in retaliation from our trading partners and jeopardise our export industries as well as undermine Australia's treaty obligations to trading partners.

The Minister for Industry and Science, Ian Macfarlane, recently held a meeting of key stakeholders in Wollongong, including the New South Wales government, local federal MPs, BlueScope Steel, workers, unions, the local council, the business community and the university, to develop a long-term economic strategy for the steel industry and for the Illawarra. The government looks forward to continuing to work with the steel industry and the Illawarra community in a bipartisan manner.

I understand that industry can request a safeguards investigation by the Productivity Commission, but that is up to those involved in the industry, and that at the instigation of industry the minister can refer a safeguards request to the Productivity Commission for investigation. The industry would have to provide prima facie evidence that the industry is facing material damage and this damage is directly resulting from an increase of imports of steel. It actually has nothing to do with anti-dumping.