5AA
23 Feb 2016
Transcipt E&OE TRANSCRIPT
Interview on 5AA with Leon Byner
SUBJECTS: Anti-dumping;
LEON BYNER: Now Arrium Steel has a lifeline thanks to a buyout of its debt, created to a large extent by cheap below cost Chinese steel which is flooding the global market, this is what's called dumping of course. A restructure of the steel maker in Whyalla will no doubt be welcome, but without a realistic and fair policy to ensure that Arrium can compete fairly the business won't survive. You've just heard on AA news the BHP figures where their profits are down 92 per cent. Yes they have a few other issues, but let me tell you, the business of dumping is not insignificant.
Australia needs a steel industry, and the reasons are most obvious; building infrastructure, military equipment and so on, not being forced to rely on imported, sometimes inferior product. But there is a view that there may be many buildings around the country, and in this state, with inferior steel and concrete, which of course puts huge pressure on border protection authorities to ensure that building materials imported are genuinely to our safety and quality standards. Dumping has got to be dealt with, but of course high power costs are also an issue.
It is commendable though that all sides of politics appear to be singing from the same prayer sheet to find solutions, but we have to resist the temptation to naval gaze or give into strong ideological views that somehow tariffs in and of themselves are a heresy, because it's people, it's jobs, it's prosperity we are seeking. Supporting China's steel industry by ignoring dumping will cost us ours. Eliminating dumping requires backbone by the Feds, ensuring quality in our public buildings requires backbone from the state. So let's get a running commentary on what's actually happening with the Federal Industry Minister Chris Pyne. Chris thanks for being available. Chris what are we doing to ensure that any of our steel makers in Australia are getting a fair fight?
CHRISTOPHER PYNE: Well good morning Leon, and good morning to your listeners. Well like you I'm in favour of free trade, but I'm also in favour of fair trade. I mean as an exporting nation Australia wants to have access to as many markets as possible, but the anti-dumping laws are in place for a reason, and that reason is to stop Australian business from being injured by unfair competition, by dumping...
LEON BYNER: [Interrupts] It's already happened though hasn't it?
CHRISTOPHER PYNE: Well, I'm sorry 75 per cent of Arrium's products are actually already not competing with Chinese steel that's got no duties on it. So there's only one quarter of Arrium's products that are actually still competing with Chinese steel that doesn't have any duties. So that's an important point. I mean the reason why Arrium is in difficulties in Whyalla is not just because of dumping. But what I'm doing as the Minister for Industry is taking a proactive stand on this. I asked the Anti-Dumping Commissioner to expedite six cases that are before the Anti-Dumping Commission about Chinese and Asian steel allegedly being dumped. I'll have answers on those in the next couple of weeks. I asked him to initiate an inquiry under new laws that I created late last year...
LEON BYNER: Yeah.
CHRISTOPHER PYNE:... that gives the Anti-dumping Commission new powers of inquiry and investigation. I've already of course banned, or put duties on Italian tinned tomatoes a couple of weeks ago which proves my bona fides on supporting fair trade as well as free trade. I'll use whatever powers I have within my capacity to support Whyalla, that don't breach World Trade Organisation obligations, and I'm definitely doing that. I think I am doing it.
LEON BYNER: Chris there's another issue here; a lot of people are asking the obvious question; we've got a Government that you are part of that talks about border protection, and I think that's the sort of message people want to hear, but you can't do that and exclude stuff coming into Australia that is inferior quality, and frankly dangerous. What are we doing about ensuring that this stuff can't get in? If there's one thing about dumping, there's another thing about safety.
CHRISTOPHER PYNE: Yeah there's two things about that. So the Anti-Dumping Commissioner has already initiated a case involving a- well that he's responding to a case put to him by the steel industry to do with Chinese alloy. So the Anti-Dumping Commission puts a duty on a product, there is a suggestion being made that the Chinese add an alloy to that, in this case boron.
LEON BYNER: Yes.
CHRISTOPHER PYNE: And then they say it's no longer the product that had the duty attached to it, so there's no duty. So we are... have a case before us which will hopefully come to me very soon with a decision from the Anti-Dumping Commissioner suggesting that this is happening; it's called circumvention, which is just another way of saying getting around the law.
LEON BYNER: Yeah.
CHRISTOPHER PYNE: And I intend to take a very firm view about that and not give the benefit of the doubt. If somebody wants to prove that my decision is wrong well they can take us to the World Trade Organisation and we'll defend that case. But if there is circumvention going on I will act on that. In terms of the Australian standards, well steel shouldn't be imported into Australia if it doesn't meet the Australian standard.
LEON BYNER: Well it is.
CHRISTOPHER PYNE: You're right though, it is.
LEON BYNER: Yeah.
CHRISTOPHER PYNE: And the customs officials need to use their resources to stop that happening - and they are. But more importantly, this is where the state governments come in. The state governments shouldn't be allowing any steel to be used in their large constructions works - and let's not forget they do all the construction, we give them the money...
LEON BYNER: Yeah.
CHRISTOPHER PYNE: ... they do the work - they shouldn't allow that steel to be used unless they have had it certified as being of Australian standard. It's not enough for the businesses to say this is of Australian standard; the state government should say well where is the certification that says it's exactly the same as the Australian standard or better?
LEON BYNER: I got another question. Now, at the moment there's a big campaign out to buy Australian when it comes to a lot of consumer products, but what are your thoughts about smart procurement (*)? Because my next guest Dr John Spoehr has made the point that most of our trading partners, when there's a big infrastructure project, if they can possibly do it they'll buy their own product.
CHRISTOPHER PYNE: Yeah well and they should, and I think they should do that. And that's why they shouldn't be using steel, for example, that isn't of Australian standard because it's cheaper. And this is where I think we're now going into a better period for our economy where the state governments are being placed under pressure, and Australian business is being placed under pressure, to use Australian products. And I think that's exactly what they should be doing. And in fact part of my National Innovation and Science Agenda that Malcolm Turnbull and I launched last December was for the Government to be an exemplar in the contracting of our ICT, our information communications and technology services, because the state government- the Federal Government spends $5 billion a year on ICT, which you can imagine, obviously we're a very big part of the economy.
LEON BYNER: Yeah.
CHRISTOPHER PYNE: A big business if you like. And we want to use that money to promote Australian advanced manufacturing and technology, and start-ups, and the kinds of things that are going to create jobs and growth. So we are acting, and happily the Prime Minister is in my corner on this.
LEON BYNER: Alright. Now one point I've got to make. The problem of this low quality and cheap steel and dumping has been around well before Andrew Robb signed any agreement with China; it's been happening for a long time. Can you tell the people of this state now that this will be stopped?
CHRISTOPHER PYNE: Well if the recommendation from the Anti-Dumping Commissioner is that there is dumping going on I will apply duties to those products, definitely.
LEON BYNER: Alright Chris, you keep us in the loop on this won't you.
CHRISTOPHER PYNE: I'm very much enjoying this job Leon, because I get the chance to help protect Australian industry, create jobs and growth for our state. Thank you for the opportunity to let people know.
LEON BYNER: No problem.
[ENDS]