5AA
18 Feb 2016
Transcipt E&OE TRANSCRIPT
SUBJECT/S: Anti-dumping inquiry into Asian steel makers;
LEON BYNER: Let's talk to the Federal Industry Minister Christopher Pyne. Chris, I notice today on the wires that you have asked the Anti-Dumping Commissioner to report on dumping behaviour in Asian steel and aluminium markets and there's probably going to be a result in April, but our last speaker and others are saying this has been a problem that's been emerging for a while, other nations are facing it and they're acting summarily so what are we going to do?
CHRISTOPHER PYNE: Well Leon that's why I took action in January with the Anti-Dumping Commission to start imposing duties on Chinese steel. There are also three outstanding cases that I've asked the Anti-Dumping Commissioner to expedite which are about imposing duties on Chinese steel and the inquiry that I've announced today in addition to that action. So we are taking necessary action since I've been the Industry Minister, the attitude around these matters has changed. I'm all in favour of free trade but I'm also in favour of fair trade. That's why last week I imposed duties on Italian tinned tomatoes that were being dumped in Australia and if the Chinese steel is being dumped in Australia, duties will be added to it and we started doing that in January so we are ahead of the game.
LEON BYNER: Well I'm pleased to hear that but I need to ask you this as Industry Minister and that is this – that we now know that Arrium and their wonderful workers in the city of Whyalla, and not just them but any of the steel component makers down the chain, are being mauled here in an unfair fight. So are you of a mind to assist these companies until we can get to the point where they can stand on their own feet – not because they're not efficient, I would argue they are, but they're- they're basically having a problem where they are withstanding some very bad efforts on behalf of the exporter in China.
CHRISTOPHER PYNE: Yeah there are a couple of issues, Leon. It's not just the issue of dumped Chinese steel, there's also the significant problem of a very low iron ore price which is affecting the whole of the Arrium business so it's not just about Chinese steel and I think people know that. They are very effective makers of steel.
LEON BYNER: Yes.
CHRISTOPHER PYNE: And I'm of a mind to do absolutely everything within our power to make sure that the steel industry remains open and viable because I'm confident the Chinese will sort out their steel glut in the next few years, and as I said to both the Prime Minister and to the Premier in the last few days, it would be a great shame to not have a steel industry and in two or three years be saying well we could actually have one now. It'll be much harder to restart than it will be to keep and that's why as the Industry Minister I'm taking whatever action is within my power to do what I can to keep it open, and not just imposing duties on Chinese steel and bringing this inquiry forward, but obviously the attitude of the Government towards support is a very open one.
I note the South Australian Government claim that they are introducing rigorous standards to only use Australian standard steel in their construction. That is a good thing but, of course, that is the policy of everyone around Australia. If you use non-Australian standard products in your construction, that is against the regulation so that might not bring any more than anyone else is going and I'm hoping to work with them, with the Weatherill Government, to do what is necessary to help the Whyalla workers and to keep Arrium open.
LEON BYNER: Alright stay on the line because I have Mr Koutsantonis, the Treasurer. Tom good morning, what do you say to what Chris is saying?
TOM KOUTSANTONIS: Oh well I'm very pleased with the way Christopher is conducting himself as Industry Minister, it's a refreshing attitude coming out of Canberra from Christopher. Obviously he's a South Australian and he is parochial and he cares about our state, so I'm glad he's doing what it is he's doing. I'm glad he's taking on Chinese dumping or anyone and I'm glad he's prepared to work with us in a very co-operative way to try and make sure we can keep steel manufacturing in this state as a strategic industry, it's very important to us as a nation. I just want to point out one thing without quarrelling Christopher; yes it is a requirement of every state government and the Commonwealth Government to use steel to an Australian standard. What we've done is we must make it independently verified and certified. So that is rather than a tenderer saying yeah, yeah it's good to the Australian standard, we'll require an independent audit of that to make sure that it is.
LEON BYNER: Stay on the line, Chris Pyne- Chris Pyne there's another point here that steel experts are saying that a lot of the imported material coming out of China is below standard and the boron content has been somewhat controversial so you're going to investigate this as well?
CHRISTOPHER PYNE: Well I'm glad you've raised that. Firstly I'm glad that Tom is taking the extra step of ensuring that every bit of steel that's used in construction in South Australian Government projects is verified independently as being Australian standard. That is an improvement, so that's good news. In terms of circumvention in boron there is a case right now being decided by the Anti-Dumping Commission around circumvention and boron in Chinese steel. I've asked the Anti-Dumping Commissioner to expedite that case; that's one of the three cases I was talking about.
LEON BYNER: Alright, well Chris thanks for joining us. Stay on the line. I've also got Senator Nick Xenophon. Now Nick, is it not the case that a lot of lobbying's been done for some time to make sure that we actually get what is basically known as a fair fight? Because again it would be a tragedy for Arrium and the workers in Whyalla and others to have to face the wrath of something that's just not fair.
NICK XENOPHON: Yeah it wouldn't just be a great shame as Christopher Pyne said; it would be a national disaster if we lose our steel industry. We will lose our manufacturing industry, we will stop being a manufacturing nation as we now know it if we lose our steel industry. For years I've been banging on about the issues of anti-dumping laws which are simply too weak, not effective, and we've had some improvements but we need to go further. We need to have a reverse onus of proof in terms of dumping cases because it's making them bleed Australian manufacturers at the moment. But we also need to have much stronger procurement policies. There was an inquiry that was done three to four years ago with Senator John Madigan that we did jointly.
LEON BYNER: Mmm.
NICK XENOPHON: A Senate Inquiry. Our procurement policies are weak. Now what Tom Koutsantonis is saying is of course absolutely welcome, and I strongly support that. I've written to the New South Wales Premier Mike Baird asking to meet with urgently because if New South Wales does the right thing in ensuring that Australian steel is being used that will turn things around. But one more thing Leon; we need to acknowledge instead of this rubbish so-called value for money proposition that governments use in procurement, or the Federal Government uses, we must acknowledge the value of having locally built- locally built steel and locally made products in terms of the massive multiplier effect that goes with it.
LEON BYNER: Alright, stay on the line. So Tom Koutsantonis and Chris Pyne, Chris I'll ask you, are we going to do everything possible to ensure that those workers in Arrium Steel are not victims of unfair dumping?
CHRISTOPHER PYNE: Well Leon just quickly in response to… well the answer is yes, we're going to do everything in our… in my power to make sure that if our businesses are being injured by dumping then duties are imposed to make… to get rid of that injury. In response to Nick Xenophon; I'm the Industry Minister that put procurement policies on the agenda for the Industry Minister's Council when I became Industry Minister, and I'm working with the states and territory, who are of course the people who do the building often using Federal Taxpayers money. So the difference between what Tom and I can do and what Nick Xenophon can do is that we can actually deliver because we're in Government at the state and Federal level. It's good that Nick raises these issues, but he can't actually deliver on any of them.
LEON BYNER: Tom Koutsantonis what can you tell the people of Whyalla, and those wonderful workers who are really hoping that they're not going to get unfairly mauled?
TOM KOUTSANTONIS: Well I say this [indistinct] Treasurer, with our without the quite substantial surpluses in our budgets across the next four years, we've been managing the books very prudently, including taxes, and if we need to invest in Arrium and Whyalla we will. I am pleased the way Chris is taking this by the horn, and he wants to run it, and I'm glad we've finally got a South Australian as our Industry Minister, it makes a big difference. I just want to point one example to your listeners.
LEON BYNER: Yeah.
TOM KOUTSANTONIS: Arrium was the preferred bidder for a piece of work in New South Wales. They missed out on that work. They missed out on that work because of imported steel. Now I'm not sure about whether it was dumped, or whether it was an inferior quality, but that job in New South Wales, which was taxpayer funded by the New South Wales Government, would have made up ten per cent of Arrium's work for a year, and they lost that out to an international company which is bringing in imported steel.
This is the difference procurement policy can make, and that's why what Christopher is doing, and why Nick raising it, is a very good plan. If all states, independently certified, and all steel was of an Australian standard, you'd see Arrium winning a lot more work. And a lot of these problems in conjunction with Chris clamping down on illegal dumping and his procurement policies, and Nick raising the awareness of this, we wouldn't be in this situation. But I reassure the people of Whyalla, the South Australian Government is prepared to use its balance sheet, it's prepared to stand by the people of Whyalla, and we can not allow this important industry to disappear. We can't be the largest iron ore producer in the world and not make our own steel.
LEON BYNER: Well remember this; guess who's sending them the materials to make the cheap stuff? [Laughs]
TOM KOUTSANTONIS: Well even the… that's exactly right though Neil. I mean we give them the iron ore at $40 a tonne, they burn it and give it back to us as steel and they're dumping it here in an inferior quality, and that's why it's important we've got a South Australian as our industry minister.
LEON BYNER: Alright, look thank you. And Nick a quick reply from you on this?
NICK XENOPHON: Well look Christopher can play politics, the fact is Governments won't do these things unless people like me keep raising them, pushing it with legislation, pushing it with Government inquiries, and Christopher needs to deliver because if he doesn't deliver on this he could well find his own seat in jeopardy.
LEON BYNER: Well there's a message here which I'm pleased to tell Whyalla; we are with you.
[ends]