Ironworkers call BHP bid disgrace

Press, 29 July 1989, Page 27

Ironworkers call BHP bid disgrace

NZPA-AAP Sydney A BHP move to acquire 100% of New Zealand Steel was a disgrace, the Federated Ironworkers’ Association said yesterday. It was scandalous that BHP was part of a consortium investing sAust2s3 million (SNZ326M) in New Zealand to increase the company’s production of steel, the national secretary, Mr Steve Harrison, said. BHP Steel chief executive, Mr John Prescott, said the reason for the investment was to bring operations in New Zealand to capacity and to meet a shortfall of steel supply in Australia. However, Mr Harrison said the shortfall was BHP’s fault because its current policy was to restrict the amount of steel produced in Australia. BHP was given millions of dollars by the

Australian taxpayer under the recently concluded steel plan to help it moderate itself and increase its international competitiveness, Mr Harrison said. "Now it is spitting in the Australian taxpayers’ faces by making up its shortfall through New Zealand investment.” BHP’s steel monopoly should be broken by introducing overseas steel companies into Australia, he said. Australia had a great chance of securing a sAust4 billion steel mill by the China Steel Corporation of Taiwan, which would provide more than 15,000 jobs in Australia. Executives from China Steel were now negotiating with federal and state government representatives and the Federated Ironworkers’ Association on the project, Mr Harrison said.