on 02-02-2014 10:22 PM
A MAJOR infrastructure contract to supply steel to the new Darling Harbour Convention Centre - a construction deal that would have boosted local jobs and the economy - has gone to a South Korean firm.
The steel fabrication project at the new convention centre was awarded to Alfasi Steel Constructions, based in Melbourne, but the supply of the actual steel to the company has gone to South Korean manufacturer Hyundai.
The revelation has angered the Australian Workers' Union which says not only have domestic companies missed out but, under the tender structure, they never even had a chance to compete for it.
The centre is expected to require about 28,000 tonnes of steel - by comparison the Sydney Harbour Bridge needed about 44,000 tonnes.
AWU secretary Paul Howes said Alfasi was locked into a deal with Hyundai at a time when Australian steel was in "jeopardy". He said the NSW premier and treasurer needed to review the state's purchasing policies.
"Barry O'Farrell and Mike Baird need to urgently review their government purchasing policies to ensure Australian workers are not locked out of building infrastructure in Australian cities," Mr Howes said.
"This is an absurd situation. While the jobs of Australian steel workers are in jeopardy, public money is being spent on Korean steel. Jobs in western Sydney and the Illawarra hang in the balance. The NSW government must ensure this does not happen again."
The Australian Steel Institute indicated in 2011 there would be major job losses in the steel sector if local industry was not given a "fair opportunity" to participate in domestic projects.
Deputy Premier Andrew Stoner said the contracts were awarded by the construction company Lend Lease, not the NSW government.
What does that mean "the contracts were awarded by the construction company Lend Lease"?
02-02-2014 10:38 PM - edited 02-02-2014 10:41 PM
Lend Lease called for tenders and the South Korean firm's tender was successful.
December 2012
LEND Lease has won the rights to develop a $1 billion convention centre at Sydney's Darling Harbour that it is hoped will rival glossy complexes such as those in Singapore.
The Lend Lease consortium has also won the rights to build 1400 residential apartments, a 900-room hotel and 23,000 square metres of student accommodation alongside the convention centre. This development will be worth $1.5 billion.
The convention centre, undertaken as a public-private partnership with the New South Wales Government, will hold 12,000 people. Work on the project is expected to start by December 2014.
on 02-02-2014 10:40 PM
on 03-02-2014 04:11 AM
They're pulling the same shtuff here too. We have steel mills, and although some might have enlarge their operation (a good investment)....they're contracting with china instead?
When I said the illuminati moved to china, I was semi serious.
Why would the money managers here and there contract with foriegn countries? The people pulling the strings know and I'm sure making a nice pile of cash at our expense.
on 03-02-2014 07:15 AM
Ahhhh Lend Lease, what a wonderful company, no surprise the NSW Government has hooked up with them, they also have a terrible work safety record - not that a little thing like that would bother O'Farrell
Lend Lease admitted to cheating its US clients for a decade on projects including the 9/11 memorial and New York’s Grand Central Station. It subsequently agreed to pay a fine of $US40.5 million. Despite this, it is still one of the state government’s preferred contractors.
Important to note from the op article
The revelation has angered the Australian Workers' Union which says not only have domestic companies missed out but, under the tender structure, they never even had a chance to compete for it.
on 03-02-2014 09:30 AM
Who has the better quality, spot?
Doesn't the steel have to meet certain engineering specifications?
DEB
on 03-02-2014 09:37 AM
I'm actually inwardly seething about that.
Not only is there a distinct possibility that it's our own ore coming back to us as refined steel.
Our own Premier has signed off on Lend Lease awarding the contract to an overseas company without even giving an Aus company a look in.
It could have provided Aussie jobs and taken some ppl off welfare. Win/win. But no. It's the Corporate raiders and looters that win, and Australian politicians their handmaidens.
The Harbour Bridge was built during the Depression with 80% Australian Labor.
on 03-02-2014 09:38 AM
i can say that locally when there was trouble with some work done on the football stadium, it turned out that the steel bits and bobs used were not sourced from Australia and while they did meet standards overseas they did not meet ours. I would bet that the decision was made purely from a financial gain (Lend Lease) perspective rather than anything else.
on 03-02-2014 09:39 AM
on 03-02-2014 09:39 AM