Unions have gone on the warpath after learning that the new headquarters for the federal Climate Change Department will use cheap Chinese aluminium, which they say is dirtier to produce than the Australian product.
The national secretary of the Australian Workers Union, Paul Howes, raised the matter with Julia Gillard yesterday during a meeting of the unions, industry, the Prime Minister and senior ministers to discuss ways of helping the struggling manufacturing sector.
The Construction, Forestry, Mining and Energy Union was not ruling out a green ban on the site if Australian aluminium was not used. The secretary, Dave Noonan, said it was hard to see how the environment was being served ”by aluminium being produced in a high-carbon environment”.
The use of the imported product was a classic example of dumping goods to corner the market and force Australian suppliers out. The union was considering what action to take to draw the issue to public attention.
The department has signed a lease for the Nishi development being constructed in Canberra’s central business district.
But a spokesman said neither the department nor the government could be blamed for using the cheap aluminium because it was only a tenant.
”The department does not have any input into the awarding of contracts for the base building, which would be a matter for the developer,” he said.
Mr Howes said the contract was for 80 tonnes of aluminium extrusions, valued at about $5 million. ”Emissions for aluminium made in China are around 50 per cent higher than Australian aluminium,” he said.
”The irony of the Climate Change Department importing aluminium made from China would be laughable if it wasn’t such a slap in the face to Australian manufacturing.”
Mr Howes said $5 million might seem like ”small fry” to the government ”but it’s a lot of money to local manufacturers struggling to survive”. The manufacturing sector is suffering the pressures of the mining boom, high dollar and cheap imports.
The Treasurer, Wayne Swan, the Industry Minister, Kim Carr, and the Australian Industry Group also attended Ms Gillard’s meeting yesterday. Such meetings have become frequent since BlueScope Steel laid off 1000 workers a month ago.
Ms Gillard has put tax breaks for manufacturers on the agenda for the tax forum next month to help keep industries viable as they adapt to structural changes in the economy.