Proposed senate inquiry into metals manufacturing blocked

The federal opposition has called a rejection of a senate inquiry into the nation’s troubled metals manufacturing industry an “extraordinary move”.

According to a joint statement from five MPs and senators, the government used its numbers to “arrogantly block” a motion from senators Susan McDonald and Matt Canavan on Monday, with the proposed inquiry to set to “probe the current and future health” of local metals production.

“Labor’s decision to prevent an inquiry into the health of Australia’s vital metals manufacturing industry is pure politics designed to help the government avoid scrutiny of rising energy costs and a rigid regulatory environment,” said shadow industry minister Alex Hawke in a statement.

Among recent signs the sector is suffering is the collapse of the Whyalla steelworks, Nyrstar Australia urgently seeking assistance for its unprofitable Port Pirie and Hobart smelters, and Glencore doing the same for its Mt Isa copper operation.

High energy costs and competition from China are some of the major difficulties for the metals sector.

The proposed inquiry by the Economics References Committee would focus on “the impact of energy costs, technological change, industrial relation regimes, workforce challenges and the broader regulatory environment”.

Picture: credit JJ Harrison (CC BY-SA 3.0)

Further reading

Nyrstar warns of ‘urgent, serious’ risk of smelter closure

AWU calls for smelter strategy amid growing crises

With Whyalla steelworks forced into administration, Australia has crucial decisions to make on the future of its steel industry