AUSTRALIAN STEEL INDUSTRY

Taranaki Daily News, 3 January 1922, Page 6

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 a 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 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 met.

At the Broken Hill Proprietary’s works atiWaratah, Newcastle, the 12inch and 8-inch rolling mills have closed down, apd 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 By the closing of the steel worics the ranks of the unemployed will be greatly swollen. It is estimated that over 20,000 men are engaged at or in association with these works, and are dependent upon them. The causes for the present precarious state of the industry are stated to be, first, the strong foreign competition, which, despite a high tariff, is able to undersell the local article; secondly, the high cost of production; and, thirdly, the reduced consumption of steel due o the depression in trade and industry generally. It is declared that by means of the exchange foreign producers arc dumping steel into Australia, and antidumping legislation is imperative. The extent to which labor affects the cost of production may be gauged by the fact that the decision of the Board of Trade last year, which increased the basic wage to £4 5s a week, together with other concessions obtained by the employees since, has added over £5OO a day to the cost of running the works.

While the 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.