Australian Steel Industry

Hokitika Guardian, 24 December 1921, Page 2

Australian Steel Industry

THREATENED WITH EXTINCTION. SYDNEY, Dec. 14. The closing down of portion of the plant of Australia’s biggest steel works at Newcastle is regarded as n serious indication of the threatened extinction of the whole iron and steel industry in Australia. The trouble is consequent upon the'high cost of production and the strong foreign competition. It is pointed out that the wages in Australia exceed! the rates paid in the industry in America and in Europe, that the cost of coal is also greater in Australia than elsewhere, and that production is impossible whilst these high charges have to be mot. i At the Broken Hill Proprietary’s works at Waratah, Newcastle, the 12inch and 8-inch rolling mills haye closed down, and 350 men have been dismissed. On other sections of the works short time is being worked, and in a few days’ time two of the blast furnaces will cease operations. With regard to the remainder of the plant the position is uncertain, but the outlook is not promising. Unless something unforeseen occurs, the whole industry will be closed within a very short period. Bv the closing of the steel works the ranks of tile unemployed will be greatly swollen. It is estimated that over 20,000 men are engaged at or in associaion with these works, and arc dependent upon them. The causes for the present precarious sate of tho industry are stated to be: firstly, tho strong foreign competition, which, despite a. high tariff, is able to undersell the local nrtielo; secondly, tho high cost of production; and-third-]v, the reduced consumption of steel, due to th» depression in trade and industry generally. If is declared that by means of the exchange foreign producers axe dumping steel into Australia, and anti-dumping legislation is imperative. The extent to which labour affects ! the cost of productian may be gauged - by he fact that the decision of the [ Board of Trade last year, which increased the basic wage to £4 5s a week, to- ’ gather with other concessions obtained ’ by the employees since, has added over 1 £SOO a day to tile cost of running the • works. r WLM- i 1,:.. l ' •

While this outlook is not promising those associated with the industry- point out that it can be saved by the prevention of dumping, the regulation, of the exchange system, reasonable tariff protection, and a general reduction in wages and cheaper coal.