Thread: The Whyalla steel works must be saved, at any cost

As has been said many times... As a generalisation:

People want great wages, but refuse to buy local from people who want great wages.

We buy clothing from "Target/Big W" and buy cheap.

We go for the lowest price at the expense of the Aussie product and the economic benefits.

We support Duopolies rather than independents.

We buy cheap imports over quality local products - Sidchrome is a prime example.
People spend a fortune on "Snap Off" but wouldn't support an Aussie product so they went overseas.

***this is separate to price gouging***

Originally Posted by frantic

Pickles , your a numbers man so simply put the extra cost of buying local steel would be far far less than the loss of income tax from Whyalla Arrium employees alone.
Ean, one steel/ Arrium would be open still if all state govts bought Canada style ( nsw just bought several BILLION dollars of rail but not local).
Also my house , building at the moment is built with an Aussie steel frame and roof was same price as a timber competitors same size so false ean.
I'm sorry but if Arrium close where do you get rail and rope from of similar quality. We went down the accounts driven path of trying imported " same grade" rope years ago. That lasted a very short time as it was such bad quality that it threatened our lives and we insisted on going back to one steel rope.
You will also be in the situation of having only foreign suppliers so what you get is all you get at their price.
Yes they may have made a bad decision on assets purchases a few years ago but if they where based in India, South Africa, Canada , USA ,Brazil or Germany they would have their domestic market protections in place.

My experience of imported steel is limited. However I can say that the limited but I do have is
1. The same grade was not the same grade.
2. The actual same grade was similar in price.
I have almost no knowledge of steel however structural engineers had to test it and found that it was a poor substitute for the local grade.

The other point is that many of the cheaper nations products are heavily subsidised either by backhanded grants, official subsidies, massive tax concessions, free or at a loss shipping etc.

While I am a firm believer that there is no such thing as a level playing field in business it's important to note that it's also nearly at a right angle against Australia

Originally Posted by Tombie

The company is viable, if managed correctly and especially once its debt overhead is reduced.

It's just that damn debt hanging over the company...

can i ask how all this debt piled up and how long ago with the debt build up start?

Management bought assets at the top of the cycle, thinking the mining boom would go on forever, that's a broad generalisation

Originally Posted by Tombie

As has been said many times... As a generalisation:

People want great wages, but refuse to buy local from people who want great wages.

We buy clothing from "Target/Big W" and buy cheap.

We go for the lowest price at the expense of the Aussie product and the economic benefits.

We support Duopolies rather than independents.

We buy cheap imports over quality local products - Sidchrome is a prime example.
People spend a fortune on "Snap Off" but wouldn't support an Aussie product so they went overseas.

***this is separate to price gouging***

Gday Tombie,


Sorry to hear of the redundancy , I hope, like I am sure we all do, that the road ahead is not a rocky one.


I think your above post is the issue that is facing and has faced most, if not all Australian businesses.


There is no excuse for any side of the Australian government, federal or state not to support Australian made products no matter what that product is. We cant change the past , but it should be standard practice from now on.


How do we change the mindset of the general population ? , well a true , hard hitting add campaign on what NOT buying Australian really does to the country and the people in it may be a start.


I have said it before, my industry has battled for 6 years that I know of to get Country of origin seafood labelling laws as standard in Australia, and we still haven't achieved it , The NT implemented with no issue many years ago but no one else even looked at it , so really what chance do we have of changing how the political parties think.


Cheers Ean

It's the mindset of most levels of government that need changing as well ean

Originally Posted by incisor

It's the mindset of most levels of government that need changing as well ean

I agree totally , our past governments and its seems the present has held the belief that "We need our trading partners and cannot upset them in any way" and sadly it seems that they will do this to the detrement of Australian business and its products. When you meet with ministers and their advisers this is 1 of the consistent things you hear no matter which side is in power - I have heard it with my own ears ..


We are a nation of not many and we rely on our trading partners to survive is the sentence that stands out.


I always think of Dick Smith ( whether you like him or not is irrelavent ) - he tried to get people to support local foods and in the end he gave up because not many would pay a bit extra for local quality food.


That was the writing on the wall for me


Cheers Ean

Originally Posted by Tombie

I've been very quiet reading this thread and have very little to say about it. However, that media article is not the most accurate. Green Inking - Yes Staff (not wages) and theres only ~250 staff - Get Illness support however, if unable to RTW are released as TPI. The wages quoted... Only was ever achieved with HUGE amounts of OT - of which there is none/very little... Aside from 3-4 people in this thread - most of you have no real idea of the impacts, the reason the company is where it is at the moment, or consequences of closing it. And I am the most recent to leave the company - redundancy as of 1st April...

I was wondering when/if you would say something.
I suspected something as much. Media seldom present a full story and regularly bias facts (agendas driven from the background?)

Frustration as others discuss the perceived anatomy of your livelihood as it is dying must be immense.
My thoughts are with you, family and workmates.
I have a good idea what significant changes and difficult choices you will likely have ahead.
Helpless words in these circumstances I know, yet you at least need to know others care.

Thanks for your input.