Australian steel pipes are set to receive a significant boost under new rules introduced by the federal government.
Key points:The new regulations are designed to help the industry recover the $5.3 billion in lost production from the global steel supply chainThe rules come after an Australian court struck down a previous ban on imports of the imported steel article Australian regulators have approved the latest version of the regulations, which will be put to the country’s new owners on Monday.
“The new rules will enable Australian manufacturers to increase their production and reduce their carbon footprint, and this is a significant win for our industry,” Greg Hunt, the federal Industry Minister, said in a statement.
“As the industry continues to recover from the devastating steel supply crisis, it is crucial that our supply chain is resilient and that Australia is not left behind in terms of protecting its environment.”‘
A great deal of money’Mr Hunt said the regulations would help Australia become a global leader in the steel supply and trade industry.
“This is a great deal for our economy, and I’m sure we’ll be looking to our suppliers around the world for ways to continue to benefit from this policy,” he said.
“It’s a great win for Australian steel, and a great help for our businesses.”‘
Waste, waste, waste’The new measures are expected to help Australian steel companies recover the cost of production, with some of the costs likely to be passed onto consumers.
The measures will also help Australia reduce the use of steel pipe, with a new requirement that it be made from recycled materials rather than “waste, rubbish and waste”.
“We are already seeing the benefits from the rules,” the Australian Institute of Chartered Accountants (AICA) said in its submission to the government.
“For example, we estimate that, under current laws, it costs an Australian producer between $5 million and $20 million in annual losses annually due to the carbon emissions associated with their steel supply.”
“The proposed regulations will support the sector to reduce these costs and to develop new products, and will be a significant benefit for the industry.”
“They also will reduce the amount of steel required by Australian steel producers by up to 40 per cent, and we believe this will reduce steel prices for Australian consumers.”
The rules are expected be approved by the Australian Industry Group (AIG) this week.
Industry groups including the Australian Manufacturers Association (AMA), the Australian and New Zealand Chambers of Commerce and Industry (ANZAC), the International Steelworkers Federation (IWTF) and the Australian Council of Trade Unions (ACUTU) have also been invited to comment on the regulations.
Mr Hunt told ABC News Breakfast that the rules would “help protect our environment”.
“I am pleased that we’re able to get this done so we can get to a more competitive position in the future, but I am sure that the industry will be very keen to see that the benefits are there for the Australian consumer as well.”
Mr Hunt also said the new rules would help the steel industry to regain the $4 billion in losses caused by the global supply chain, which has been hit by the devastating global steel crisis.
“These new regulations will help to return some of that lost production to Australia and to ensure that we can recover the money we lost, which is a lot of money,” he told ABC Radio National.
“We’ve got some big projects in the pipeline that are being funded by this policy.”
Topics:environment,industry,government-and-politics,environmental-policy,business-economics-and/or-finance,australiaFirst posted November 15, 2018 07:56:36Contact Rebecca Young: [email protected]