Senate Foreign Affairs, Defence and Trade Legislation Committee, , 6:44:24 to 6:48:19
The committee examines the potential impact of the Whyalla Steel Works closure on defense supply chains, particularly for submarine construction and structural steel required for major infrastructure projects.
Topics: Manufacturing, Infrastructure, Government spending
Speakers: Meghan Quinn, Speaker 28, Raff Ciccone, Unknown Speaker
>> Thank you very much. >> I will be as efficient as possible.
>> Take your time. Take your time.
>> Um, thank you. Um, I just wanted to ask some questions around um steel supply and the closure of the Yella Steel Works. So I'm not sure um
>> so it depends a bit what aspect of still supply if it's relating to feeding into submarine supply chains for example um that would be best asked for the Australian submarine agency.
>> It's probably more broad than that because obviously um sheds all of those things and the infrastructure um will require steel more broadly. So perhaps I can ask and then we can refer on um if if it gets too specific. So um has defense done an assessment um on the closure of the wireless steel works and whether that will cause any shortages in the supply chain.
So I'm not aware of a specific uh report. I do know that officials have been working with uh the our officials within the department of industry science and resources. Um I know that more from my previous role than my current role. Um and so there has been connections in terms of discussion with both proponents involved in the Wya uh resolution of the Wya situation through the insolveny process. Um and we continuously look at um providing information to market on different supply chains we need but I'm not aware of a specific identified issue relating to the most recent um closure of the blast furnace.
>> Okay. Um, can I just ask did defense have any um tender or head contractor agreements with the wireless steel works?
>> Uh, I I don't believe the defense department did, but many of our industry suppliers may well have because we have a distributed system.
>> Yeah.
>> Uh, and so I am aware of uh some of and and I'm aware of the submarine supply chain more recently because I've been briefed on that. Um but there would there would be potentially aspects where it'd gone from Wala to other uh industry partners um who produce different types of steel uh outputs and then that would go into the supply chain.
>> Okay. Um and I and I guess that sort of that leads into um Blue Scope's position. Um and has has defense assessed what that will mean for Blue Scope if if it will be solely reliant so not just on what defense needs but obviously what your suppliers then need. um if they are the primary and only steel maker supplying the grade of steel you need in Australia, has it been looked at what um international supply chains may look like and what risk that may put the projects under?
>> So we would have fed in our any concerns and uh and assessments in response to questions uh with the lead being in the department of industry science and resources. >> Okay. they have a task force uh looking at this issue. We we certainly are connected and would respond to any requests for information that they would like from us but but the lead is the department of industry science and
>> Okay. But so far there hasn't been any impact that you're aware of. Um
>> as I as I understand at the moment there's quite there's quite a lot of stock uh on the floor on you know stock available of the material that came out of the blast furnace and that will carry the supply chains in Australia forward for a certain period of time. It's towards the end of uh that that the the concern is being raised about structural steel. Y >> um structural steel is used in in different forms um particularly you know big infrastructure such as railways and and so it would be a concern for the nation uh if we didn't have structural steel capability um and that's one reason why the government is working diligently to to to look for opportunities to continue structural steel manufacturer in Australia