The Whyalla steel works must be saved, at any cost

Ean Austral · 8th April 2016, 09:30 PM

Originally Posted by incisor

what costs have increased at a much higher rate than others over the last few years.. ?

Anything that requires fridge gas has gone thru the roof , proberly not related to steel industry , but 3 years ago we paid $1200 for a 65kg bottle of R22 gas , I picked up 2 yesterday at a cost $12450 plus government levies.

Cheers Ean

**Bytemrk** · 8th April 2016, 09:41 PM

Andy,

I thought you didn't start paying hecs until you earned around $54k p.a

either that is some fair vacation job, or I've got my facts crooked....

Loan Repayment - Study Assist

**incisor** · 8th April 2016, 09:44 PM

Extraordinary the way that one went....

**bob10** · 8th April 2016, 09:57 PM

Originally Posted by Pickles2

I don't think it's "madness" at all, it is REALITY.
There have been many companies "go down" in this country, over the last twenty years & longer,.. that is a fact, we all know that. Arium is another one, and it won't be the last, unfortunately.
And so, some say, the Govt should assist,...all of these companies?...over the last twenty years or so that this has been happening? How does that work, where do the dollars come from?
The simple fact is that these industries are UNCOMPETITIVE,..We cannot compete, because maybe, just maybe, we have priced ourselves out of the market? Maybe our COSTS are too high?....Does anyone think that this is possible.
We have the best democratic living "conditions" anywhere in our part of the World"....No doubt about that, but if these "conditions" equate to higher costs/uncompetitive industries relative to our neighbours/competitors, what is the answer?.....I don't know, but I do know that I believe that this country is in a lot of trouble, and I also know, that many many Aussies, DON'T WANT TO KNOW,..."She'll Be Right Mate". Well I'm here to say, "She Won't Be" IMHO.
Pickles.

No one I know has a "she'll be right"attitude. Almost all have an understanding of the problem. So, why was $ 385 million found to keep Port Pirie alive, and nothing for the Steelworks.? Surely the Steelworks are a strategic industry? Spending $ 385 million to keep a lead smelter going, and trashing a strategic industry, like a steelworks, considering there is only one other left in Australia, is madness. The cost in Welfare payments alone to Whyalla is reason enough to find a way. That is the reality. The Federal Govt lacked the courage to ensure a % of steel used in Australian infrastructure was Australian made. That is another reality.

Whyalla: Australia's largest ghost town or a steelworks bail-out?

**bob10** · 8th April 2016, 10:03 PM

Originally Posted by Ean Austral

Anything that requires fridge gas has gone thru the roof , proberly not related to steel industry , but 3 years ago we paid $1200 for a 65kg bottle of R22 gas , I picked up 2 yesterday at a cost $12450 plus government levies.

Cheers Ean

It's going to get worse.

Air Conditioning Costs and the banning of R22

**EastFreo** · 9th April 2016, 02:11 AM

Originally Posted by incisor

Wrong

Go read some real facts...

I have to ask - where are these real facts?

As much as anyone I would prefer our industry to stay here and thrive. But I think Mr LR is correct. Wages here have risen much higher than our competitors.

I am happy to be corrected.

**bob10** · 9th April 2016, 06:08 AM

Originally Posted by Ean Austral

Anything that requires fridge gas has gone thru the roof , proberly not related to steel industry , but 3 years ago we paid $1200 for a 65kg bottle of R22 gas , I picked up 2 yesterday at a cost $12450 plus government levies.

Cheers Ean

This is from the UK Government web site. Admittedly, they are E.U. regulations. Have to admit, I'm not sure where we stand in Aus., regarding regulations for the use of CFC's.

[ame]http://webarchive.nationalarchives.gov.uk/20070603164510/http://www.dti.gov.uk/files/file29101.pdf[/ame]

**bob10** · 9th April 2016, 06:28 AM

Originally Posted by EastFreo

I have to ask - where are these real facts?

As much as anyone I would prefer our industry to stay here and thrive. But I think Mr LR is correct. Wages here have risen much higher than our competitors.

I am happy to be corrected.

Forget wages, that's a furphy. The problem can be summed up in two words, Debt, and China. China is producing more steel than they need, subsidised by their government. They are flooding World Markets with cheap steel, sending many overseas mills to the wall, including in the UK. Conspiracy theorists could say Chinas' plan is to control World steel supply, I'm not sure about that. The solution is to modernise your steel plant, to bring it up to Worlds best practice. From what I can gather, this means more automation , taking people out of the loop. Extremely expensive, but if you want a steel industry, making quality steel, rather than cheap Chinese low grade stuff, you have to make the hard decisions. Can't see that happening in Aus. any time soon.

Why Arrium is in trouble;

Awash with an oversupply of Chinese steel and no end in sight | afr.com

**bob10** · 9th April 2016, 06:40 AM

And, it is not only steel....

China ramps up aluminum output as 20pc rally allows restarts | afr.com

**Pickles2** · 9th April 2016, 06:50 AM

Lets be honest with each other people, even if we don't agree with each other.
Lets not just talk about steel, because the issue isn't confined to steel, Arium is just the latest in a long line, going back many years, before Mitsubihi folded etc, and people said the same then, and before that there was Sidchrome,..how long ago was that,....still going of course, still making a good product, but not in Aus?....like I said, arium is no different to any of the companies that have folded or gone overseas,..why?....Because they are uncompetitive in Australia. In many cases, there was nothing wrong with the product, ie Sidchrome, but they couldn't make it in australia & be competitive.
Its the same with all of 'em, the cost of making stuff here is simply too much.
Aluminium, oil refineries, etc etc, all gone,....why is it,..because our product is too dear,..there is cheaper stuff about, just as good. I don't like it. Look at the clothes you wear, Don't know about you guys, but most of mine comes from China or Indonesia,...why is that?..We used to have a good textile industry here, where did that go, & why?
Like I said it's happened, & it'll keep happening. We have simply priced ourselves out of the market, and people that's why it's happened, buyers did not want to pay the cost of Aussie made goods,....if they had've, those goods/factories would still be here.
Pickles.

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