SENATE COMMITTEE CALLS FOR POLICY CHANGE TO SECURE THE FUTURE OF ARRIUM

Today the Senate Economic References committee tabled its interim report into Australia’s steel industry, which calls on the Turnbull Government to take action to secure the future of Arrium and the Whyalla steelworks.    

Around the world, governments are taking action to support their steel industries. But in Australia, under the Turnbull Government, that support has been inadequate to say the least.

 

Governments must work together with unions, the community and companies throughout the supply chain to ensure that the industry remains viable.

 

Beyond the urgent issues pertaining to the sale and future of Arrium and the steelworks in Whyalla, Malcolm Turnbull must act to secure the future of the broader Australian steel industry and supply chain.

 

Labor knows that further industry-wide reforms will be required to maintain Australia’s steelmaking capabilities.

 

These must include policy and legislative reform in anti-dumping, government procurement, and standards.

 

Labor won’t abandon Australian steel workers, leaving them to struggle alone against the global pressures threatening their industry.

 

Labor understands that standing up for Australian jobs means preserving the jobs of people who are working now.


Showing 12 reactions

Please check your e-mail for a link to activate your account.
  • commented 2017-02-17 11:40:01 +1100
    Government should avoid foreign ownership of these strategic assets and should also co-invest into the company to invest in technology to modernise the assets to ensure long term prosperity.

    Government funding should also be allocated to support research and development to put our nation to be on the front foot of innovation in steelmaking.

    Procurement policy should be drafted to encourage prevalent use of locally made steel for government funded infrastructure projects to ensure high quality products and to support the domestic steelmaking industry.
  • commented 2017-02-15 22:28:53 +1100
    Return Arrium (this profitable company) to the ASX and stop wasting money on expensive admin fees, there is no justification for it.
  • commented 2017-02-15 21:59:37 +1100
    Arium should be returned to shareholders
    As a pensioner I can not afford to lose everything
  • commented 2017-02-15 19:13:20 +1100
    ASIC the Corporate Watchdog, who are they protecting ?

    http://www.michaelwest.com.au/mystery-flight-of-ansett-accounts/
  • commented 2017-02-15 19:11:25 +1100
    Chris Pyne admits on April 22 that the Federal Government allowed an unfair steel market for Arrium to operate in with Chinese Government subsidized below cost steel dumped into Australia which is against World Trade Agreements. Only after Arrium is in administration does the Federal government rush tariffs into place as some sort of token effort.

    Weak and cowardly leadership by Turnbull and previous Labor Government, especially when compared to Trump who is attacking the problem head on. The big losers are the Arrium employees, shareholders and creditors. Big winners KordaMentha, UBS, Macquarie Bank, Morgan Stanley along with all the other legal entities gourging cash from the Arrium treasury, all with approval from the big 4 banks, Government and their supposed watchdog, ASIC.

    We’ve seen this all before, yet nothing changes.

    http://www.abc.net.au/news/2016-04-23/import-duties-imposed-on-cheap-chinese-steel/7352666
  • commented 2017-02-15 19:11:11 +1100
    How on earth, can Arrium be sold when it belongs to the shareholders, it is their company, their savings, their investment, their livelihood! The justification is non existent. The company has been making a sustained turn around in the last 12 months. Iron ore and Steel are both up over 100%, the debt load has been reduced substantially. There is no need for a sale. Employees have taken a substantial paycut and yet the administrators are reportedly being paid 1 million a week! And for what so they can simply sell the company that belongs to the shareholders?

    Will Australia’s national security or economic future be anymore secure having its only secure steel producer in the hands of foreign owners? Do you think the employees future will be anymore secure?

    Arrium has now a stronger balance sheet and stronger cashflow statement. There is no need for excessive administration fees, nor selling fees. It can and should be returned to trading with a new board and leaner competent management. Its a simple solution. The time for administration is over return Arrium to its owners!
  • commented 2017-02-15 17:50:40 +1100
    I am one of the approx. 80,000 Australian shareholders having their company liquidated by KordaMentha. I have watched iron ore make a remarkable recovery. Surely something can be done to help these 80,000 shareholder/voters
  • commented 2017-02-15 15:36:00 +1100
    How can the Government allow 80,000 Australian Investors to get ripped off by a Liquidator that has a history of paying itself exessive fees while it serves the intresest of everyone except the Shareholders that own the Australian Company. Whats happened to Arrium just highlights how incompetent the Australian Government is. The Australian Voting Public are becoming more aware by the day how much of a Farce the Australian Government is and also how much of a farce ASIC is.
  • commented 2017-02-15 15:29:42 +1100
    80,000 predomitaly Australian shareholders having their company liquidated by KordaMentha. What a disgrace. The company is making an excellent turnaround but just needs a small amount of temporary support from both government and financial institutions. Should the sale of Arrium Australia go ahead I can only see job losses ahead in the name of “Synergies and Rationilization”.

    How is selling off this company to foreign entities a good thing for Australia? What tax will the new owners pay? 16% like the other multinationals? What will the social and financial cost to these employees be? Are the employees jobs garanteed under new ownership?

    Do the new owners plan to import product and sell it through Onesteel distribution?

    In which country will the admin jobs be relocated to?

    Arrium Australia has a very bright future in both steel and iron ore. Huge improvements to profit are just around the corner due to the iron ore benefication plants due to start processing shortly.

    No need to sell off an Australian company like this.
  • commented 2017-02-15 12:34:53 +1100
    Save Our Jobs and Save Our Industry!
    February 13, 2017
    |
    Charles Law – ASU
    Jobs! Jobs! and Jobs!
    Arrium steel, mining, recycling and distribution divisions are all running profitably with appropriate workforce structure in place. The outlook of the steel and iron ore are as prosperous as ever in recent times based on the current market fundamentals and the structural change in China and US policies in relation to steelmaking and infrastructure projects.

    What will happen to the jobs when the steel and mining assets are being sold off?

    How many jobs are going? Can the new owner guarantee no jobs will be lost as a result of synergy? Which plants, offices and operations will be closed as part of the operation restructuring?

    What about the workers conditions? Can the new owner guarantee the workers conditions will not be dwindled and no lower wage workers will be imported from overseas to compete against local workers to drive conditions down?

    National Assets are GONE forever!
    It took over 100 years to establish a proudly Australian owned domestic steelmaking assets to provide stable jobs and security to many hard working Australian at the time of building the nation.

    How much local steel have we produced locally to build the Sydney Harbour Bridge in the 30s during the second world war and global recession?

    How are we going as a nation to provide national security and economic stimulus to the country when the world is heading to war and facing another global recession if the raw material used in infrastructure projects are no longer owned by us?

    Do we have other options than selling off these assets?
    YES! YES! and YES!
    With the surge in steel and iron ore prices to multiyear high, based on our detailed analysis, the company is projected to earn over A$500m EBITDA which is more than sufficient to service and pay off the remaining financing debts over the next few years.

    We ASU plead the Unions and Governments to take proactive approach to engage in dialogue without delay to consider the debt refinance option with the current lending syndicate in order to take the company out of administration and return to normal trading as the utmost priority.

    Banks, being the corporate citizens and key driver of economic prosperity and were supported and “saved” by the government using taxpayers monies during the GFC, should work collaboratively with the governments to support the national interest.

    Jobs are Not guaranteed and time is running out!
    Inaction by the unions and governments is not the option at this historical moment and we plead all the stakeholders to take responsible and prudent approach in assessing the current situation and taking appropriate actions without delay!
    http://arrium-asu.wixsite.com/fight-for-justice/single-post/2017/02/13/Save-Our-Jobs-and-Save-Our-Industry
  • commented 2017-02-15 00:56:51 +1100
    http://arrium-asu.wixsite.com/fight-for-justice
    Visit Arrium Shareholders United for more information on how to fight for the Australian Steel Industry and Jobs