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Monday, 22 August 2011
Page: 5008

Steel Industry

Senator COLBECK (Tasmania) (14:40): Mr President, my question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. I refer the minister to the announcement today by steelmaker BlueScope Steel that it will shut down facilities at Port Kembla and Western Port, resulting in the loss of as many as 1,000 jobs. BlueScope's announcement comes on top of the 400 job losses at OneSteel last week. I also refer the minister to comments made by AWU national secretary Paul Howes that Australian manufacturing is in one of its worst periods since the Great Depression. This spells the end of Australia's steel exports. Why is now the time to introduce the additional burden of Labor's carbon tax?

Senator CARR (Victoria—Minister for Innovation, Industry, Science and Research) (14:40): I thank the senator for his question. I would suggest that the senator might have more authority to ask questions about the steel industry if the Liberals in this chamber had actually supported the government's moves on a steel industry transformation scheme. You have not supported those moves. In fact, what you have proposed to do is to cut the budget by $70 billion. The result that that would produce would be to cut all the programs in science, innovation and research for a period of about seven years. That is the consequence of your policy!

Today's announcement by BlueScope, as BlueScope themselves have said, had absolutely nothing whatsoever to do with the carbon price issue—absolutely nothing to do with it whatsoever. It was entirely to do with the fact that the Australian dollar has increased by some 45 per cent in the space of two years, the resources that they have to use in their production have increased very rapidly as well and we have a massive increase in the number of imports as a result of the changes in the terms of trade which have produced such a high dollar for Australia. So to make any connections whatsoever with the carbon price is totally fallacious.

We have an opposition that, frankly, will not face up to their responsibilities to offer some advice about what they see as the future in terms of the dramatic structural changes that are occurring in Australian manufacturing. You would have thought the opposition by now would have some advice for us. How do we deal with the issue of the high dollar? How do we deal with the question of a booming resources price? What is your policy with regard to the structural changes that are occurring within Australian manufacturing? The only support you are prepared to give to manufacturing, as you see it, is to make it easier to sack workers. That is your idea of a manufacturing policy. And I am afraid that, until you actually get on board with a bit of serious stuff, it is very hard to take you seriously. (Time expired)

Senator COLBECK (Tasmania) (14:43): Mr President, I ask a supplementary question. I refer to the Prime Minister's announcement this morning of a $100 million cash injection for BlueScope Steel from the industry's carbon tax adjustment fund. Why is the government raiding the carbon tax adjustment fund before the carbon tax is even introduced?

Senator CARR (Victoria—Minister for Innovation, Industry, Science and Research) (14:43): We have indicated that we are prepared to bring forward some entitlements under the Australian steel industry structural adjustment arrangements as a result of the measures we are introducing on climate change. This is a reasonable approach in the circumstances. We have this unprecedented set of conditions that relate to the steel industry. It is incumbent upon governments to work with companies, to work with workers, to work with regions to actually assist in the process of adjustment. You would have thought we would have heard more from the opposition about working to ensure that Australia is able to face up to its responsibilities. You would have thought by now this opposition might have come to terms with the fact that they actually rejected the support that we are providing to the steel industry. I am afraid it is not a position that has been taken in New South Wales, where the state government has come on board with the $30 million Innovation Investment Fund— (Time expired)

Senator COLBECK (Tasmania) (14:44): Mr President, I ask a further supplementary question. Given that the minister has presided over the loss of more than 105,000 manufacturing jobs, the worst manufacturing employment figures since current ABS records were first collected, and contractions in manufacturing activity for more than two years, will the minister now admit that the carbon tax will just make a terrible situation even worse?

Senator CARR (Victoria—Minister for Innovation, Industry, Science and Research) (14:45): I have indicated to the Senate that there are global factors at work in terms of the structural adjustment that the Australian economy is going through. We are seeing the largest single structural adjustment in 50 years and we are working with companies to ensure that the economic transformation in this country is able to ensure prosperity for all Australians.

If we had taken your approach during the economic crisis, you would have seen some 200,000 fewer people employed. You opposed even the most rudimentary stimulus measures. You opposed any support for Australian industry and you still have a policy of cutting industry programs by $2 billion. Yet the Leader of the Opposition masquerades around this country as a friend of manufacturing workers. At the same time he wishes to cut the programs by $2 billion. Presumably this is part of the $70 billion cut that Mr Hockey has been advocating. We have a hypocritical opposition. A fair-weather friend— (Time expired)