Matt Thistlethwaite (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, my question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Following BlueScope Steel's announce­ment of a major restructure of its operations at the cost of up to 1,000 jobs, can the minister advise the Senate what action the government is taking to support Australian workers?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I thank Senator Thistlethwaite for his concern, a concern that I had hoped would be shared right across this chamber. BlueScope is experiencing an unprecedented combination of challenges, as Mr O'Malley from BlueScope stated this morning. The record high dollar, the low steel prices and the high raw material costs are the realities that BlueScope has had to deal with.

Senator Fierravanti-Wells interjecting—

Senator, you have not even supported the steel industry's transformation plan yet!

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Carr, ignore the interjections. On both sides, we will have silence! Ignore interjections—they are disorderly—Senator Carr, and direct your comments to the chair.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I was making the point that when the government introduced the steel industry transformation plan the other side opposed it. That remains their position. The reality we have to deal with is that we cannot choose the problems. We can, and this parliament can, choose the solutions. Labor's view is that that is what the choice is all about. We have to face up to problems and we have to build new solutions. We are responding on three fronts. Firstly, we stand shoulder to shoulder with the workers and their families who are dealing with this hard news today. We are providing a $10 million support package over two years to help secure their future—both in the Illawarra and in Mornington. This includes access to training, mentoring, job-seeking support services and relocation assistance if opportunities open up in other areas. Secondly, we are working with BlueScope to ensure the long-term viability of Australian steel production. The restructure will reprioritise the company's resources and make it more effective, reducing losses while retaining capabilities and opening up the possibilities for a return to exporting when business conditions improve. As part of this, the government will relieve the short-term pressures by bringing forward $100 million for the payments allocated to BlueScope from the steel transformation package—a package, I remind the Senate, the opposition has not supported. Thirdly, we will be working in partnership with— (Time expired)

Matt Thistlethwaite (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How does the minister respond to fears that Australian manufacturing is in crisis?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

The government is also providing $30 million in conjunction with the state government of New South Wales and the company to provide new investment opportunities for the Illawarra region. We should not, under any circumstances, under­estimate the gravity of the challenge that is facing Australia. On the other hand, it does not mean that we are helpless in the face of the enormous structural changes that are occurring within our economy. We have to constantly remind those opposite that it actually makes sense to manufacture in Australia. However, we cannot compete at the bottom of the market. We can and do compete on the strength of our ideas. There is a growing international consensus that investment in research and development is the only way that nations can hope to transform their economies and build on quality and build higher paying jobs. That is why countries like China— (Time expired)

Matt Thistlethwaite (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Does the minister accept that BlueScope's announcement spells the end of Australian steel exports?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Today BlueScope announced that it is withdrawing from the export business to focus on domestic markets and their international growth opportunities. They will return when business conditions improve. They have made a conscious choice to protect the long-term viability of Australian steel and that includes the viability of its export arm. The restructure will better position the company to maximise its profits and its viability in the long-term. They will work, for instance, with Nippon Steel to capitalise on next generation coated-steel products. They will launch them initially in Australia and then roll them out throughout the company's global markets. BlueScope have made it very clear that their decisions are about the long haul in Australia. As we saw with Holden, the opportunities are there to transform economic enterprises When other companies have been faced with these major structural changes, we have seen that it is possible to turn around a company— (Time expired)