A new report on the future of the steel industry has called for all tenderers for federal government projects to submit plans for Australian industry participation.
A Senate committee has spent the past two years examining the financial troubles of two major steelworks, Arrium in South Australia and BlueScope in the NSW Illawarra region.
BlueScope returned to profitability in the 2015 financial year, while the sale of Arrium to British consortium GFG Alliance secured the continued operation of the Whyalla steelworks.
But the inquiry's 148-page report found the Australian steel industry still faced a number of underlying challenges.
These included inconsistent standards, issues in procurement policies, and unfair and uncompetitive trade practices leading to dumped and subsidised imports and further price strains on steel produced in Australia.
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A key recommendation of the report is for all tenders for commonwealth projects, not just those for major projects $500 million and above, be required to have Australian Industry Participation (AIP) plans.
The AIP plans were put in place in 2013 to ensure "full, fair and reasonable opportunity for Australian entities to supply key goods and services".
The committee was also concerned the Australian Industry Participation Authority was not adequately funded to monitor and audit the use of Australian-made steel in government projects.
As well, Australia needed a national steel policy and "supplier advocate" to advise the government on challenges and opportunities facing the industry, and greater powers and resources for the Anti-Dumping Commission to deal with unfair and anti-competitive trade practices.
Coalition senators on the committee said the non-government-majority report was "inaccurate in many areas and is politically over-reaching".
They said changes to AIP plans were not justified.
