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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Securing NSW Steel Industry Bill 2017
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Overview of Bill
The object of this Bill is to ensure, as far as practicable, that steel used in public works or
infrastructure constructed by or on behalf of public authorities is manufactured in Australia.
Outline of provisions
Part 1 Preliminary
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act 3 months after the date of assent to
this Act unless commenced sooner by proclamation.
Clause 3 specifies the object of the proposed Act.
Clause 4 defines certain words and expressions used in the proposed Act.
Part 2 Australian Steel to be used in public works and
infrastructure
Clause 5 provides that a public authority must not construct any public works involving the use
of more than 2 tonnes of steel (relevant public works) unless 90 percent of the steel is
manufactured in Australia.
Clause 6 provides that a public authority must not contract with another party who undertakes to
construct any relevant public works on behalf of the public authority (a relevant contract) unless
b2017-026.d03
Securing NSW Steel Industry Bill 2017 [NSW]
Explanatory note
the contract contains a provision requiring 90 percent of the steel used in the construction of the
works to be manufactured in Australia.
Clause 7 provides that any party to a relevant contract who undertakes to construct any relevant
public works on behalf of a public authority is required to provide a report to the public authority
and the Independent Pricing and Regulatory Tribunal (IPART) verifying the quantity and origins
of any steel used under the contract.
Clause 8 requires a public authority that constructs any relevant public works or is a party to a
relevant contract to ensure, as far as is practicable, that the requirements of the proposed Act are
complied with.
Part 3 NSW Steel Industry Advocate
Clause 9 enables the Governor to appoint a NSW Steel Industry Advocate with a principal office
in the Illawarra region.
Clause 10 sets out the functions of the Advocate, which include monitoring compliance with the
proposed Act and conducting a review of the steel manufacturing sector.
Clause 11 requires the Advocate to report to Parliament on various matters.
Clause 12 provides for the employment of staff and the delegation of the Advocate's functions to
staff.
Part 4 Miscellaneous
Clause 13 requires IPART to prepare an annual report regarding the effectiveness of the proposed
Act in achieving its objective.
Clause 14 provides that the proposed Act binds the Crown.
Clause 15 enables the Governor to make regulations for the purposes of the proposed Act.
Clause 16 provides for the review of the proposed Act in 5 years.
Page 2
Introduced by Mr R J Park, MP First print
New South Wales
Securing NSW Steel Industry Bill 2017
Contents
Page
Part 1 Preliminary
1 Name of Act 2
2 Commencement 2
3 Object of Act 2
4 Definitions 2
Part 2 Australian steel to be used in public works and infrastructure
5 Relevant public works carried out by public authority 4
6 Relevant contracts 4
7 Cumulative steel usage reports 4
8 Obligations of public authorities 5
Part 3 NSW Steel Industry Advocate
9 NSW Steel Industry Advocate 6
10 Functions of NSW Steel Industry Advocate 6
11 NSW Steel Industry Advocate required to report to Parliament 7
12 Staff of NSW Steel Industry Advocate and delegation 7
Part 4 Miscellaneous
13 Annual report by IPART 9
14 Act to bind Crown 9
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Securing NSW Steel Industry Bill 2017 [NSW]
Contents
Page
15 Regulations 9
16 Review of Act 9
Page 2
New South Wales
Securing NSW Steel Industry Bill 2017
No , 2017
A Bill for
An Act to ensure that Australian steel is used in infrastructure or public works constructed by or
on behalf of public authorities.
Securing NSW Steel Industry Bill 2017 [NSW]
Part 1 Preliminary
The Legislature of New South Wales enacts: 1
Part 1 Preliminary 2
1 Name of Act 3
This Act is the Securing NSW Steel Industry Act 2017. 4
2 Commencement 5
This Act commences 3 months after the date of assent to this Act, unless commenced 6
sooner by proclamation. 7
3 Object of Act 8
The object of this Act is to ensure, as far as practicable, that at least 90 percent of the 9
steel used in public works or infrastructure constructed by or on behalf of public 10
authorities is manufactured in Australia. 11
4 Definitions 12
In this Act: 13
excluded steel means: 14
(a) any kind of steel that is not manufactured at any location in Australia and, in 15
relation to a particular public works project, could not be manufactured in 16
Australia for the purposes of that project: 17
(i) at a reasonable cost, or 18
(ii) within a reasonable time, or 19
(b) any item made in Australia that is required to be made from a special kind of 20
steel that: 21
(i) is not manufactured in Australia, and 22
(ii) could not be manufactured in Australia for a reasonable cost, or 23
(c) any steel not manufactured in Australia where the unit price for that steel (if it 24
were manufactured in Australia) would be higher than the global steel price by 25
either of the following: 26
(i) 20 percent, 27
(ii) any percentage higher than 20 percent which, in the opinion of IPART, 28
represents the net value of the benefits derived from the continued 29
operation of the Australian steel industry. 30
global steel price means the relevant price for steel specified by MEPS International 31
Ltd or another price for steel specified by a global steel price indicator prescribed by 32
the regulations. 33
IPART means the Independent Pricing and Regulatory Tribunal established under 34
the Independent Pricing and Regulatory Tribunal Act 1992. 35
public authority means any of the following: 36
(a) a NSW government agency, 37
(b) a Public Service agency, 38
(c) a local council, 39
(d) a State owned corporation, 40
(e) any other person or body that is prescribed by the regulations to be a public 41
authority for the purposes of this Act. 42
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 1 Preliminary
reasonable cost means any cost price of steel that does not exceed 20 percent of the 1
base cost of the steel if manufactured in Australia. 2
relevant contract means a contract under which a public authority contracts with 3
another party who undertakes to construct any relevant public works on behalf of the 4
public authority. 5
relevant public works means public works and infrastructure (including housing, 6
transport, utilities and public buildings) that: 7
(a) involve the use of more than 2 tonnes of steel, and 8
(b) are to be constructed by or on behalf of a public authority, and 9
(c) are to be paid for, in part or in full, by the public authority. 10
Note. The Interpretation Act 1987 contains definitions and other provisions that affect the 11
interpretation and application of this Act. 12
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 2 Australian steel to be used in public works and infrastructure
Part 2 Australian steel to be used in public works and 1
infrastructure 2
5 Relevant public works carried out by public authority 3
A public authority must not construct any relevant public works unless at least 4
90 percent of the steel (other than excluded steel) used in the construction of the 5
works is manufactured in a blast furnace or an electric arc furnace that is located in 6
Australia. 7
6 Relevant contracts 8
(1) A public authority must not enter into a relevant contract unless the contract contains 9
the following: 10
(a) a provision that requires at least 90 percent of the steel (other than excluded 11
steel) used in the construction of the works under the contract to be 12
manufactured in a blast furnace or an electric arc furnace that is located in 13
Australia (the steel requirement provision), 14
(b) a provision that imposes a financial penalty on any party to the contract who 15
fails to comply with the steel requirement provision, 16
(c) a provision that requires any party to the contract who undertakes to construct 17
any relevant public works on behalf of a public authority to provide a 18
cumulative steel usage report to the public authority before the public 19
authority makes any progress payment or final payment under the contract, 20
(d) a provision that enables the public authority to arrange for an independent 21
audit of any cumulative steel usage report provided to the authority by a party 22
to the contract. 23
(2) In this section: 24
cumulative steel usage report means a report prepared under section 7. 25
financial penalty means a monetary penalty that is to be calculated for the purposes 26
of this section as the total quantity of steel used under the contract that fails to comply 27
with the steel requirement provision multiplied by the prescribed amount. 28
prescribed amount means the amount (not less than $1,000) prescribed by the 29
regulations for the purposes of this section. 30
7 Cumulative steel usage reports 31
(1) Any party to a relevant contract who undertakes to construct any relevant public 32
works on behalf of a public authority is required to prepare a cumulative steel usage 33
report. 34
(2) Before the public authority makes any progress payment or final payment under the 35
contract, that party is to provide the report and any other information prescribed by 36
the regulations to: 37
(a) the public authority, and 38
(b) IPART. 39
(3) A cumulative steel usage report is to include the following: 40
(a) the quantity of any steel used under the contract, 41
(b) the origins of any steel used under the contract, 42
(c) evidence verifying the information referred to in paragraphs (a) and (b). 43
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 2 Australian steel to be used in public works and infrastructure
8 Obligations of public authorities 1
(1) A public authority that carries out the construction of relevant public works is to 2
ensure, as far as practicable, that: 3
(a) the construction complies with the requirements of this Act, and 4
(b) there is an accurate method for the measurement of the quantity and origins of 5
any steel used in the construction. 6
(2) A public authority that is a party to a relevant contract is to ensure, as far as 7
practicable, that: 8
(a) any relevant contract entered into by the public authority complies with the 9
requirements of this Act, and 10
(b) any information contained in a cumulative steel usage report provided to the 11
public authority under a relevant contract is accurate. 12
(3) A public authority that carries out the construction of relevant public works or is a 13
party to a relevant contract is, as soon as practicable after the end of the financial year 14
in which the construction of the relevant public works is completed, to provide the 15
Minister with a signed declaration certifying that the public authority has complied 16
with this section. 17
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 3 NSW Steel Industry Advocate
Part 3 NSW Steel Industry Advocate 1
9 NSW Steel Industry Advocate 2
(1) The Governor may appoint a NSW Steel Industry Advocate. 3
(2) The principal office of the Advocate is to be located within the Illawarra region. 4
(3) The Advocate may be removed from office by the Governor on the address of both 5
Houses of Parliament. 6
(4) The office of Advocate is a full-time office and the holder of the office is required to 7
hold it on that basis, except to the extent permitted by the Minister. 8
(5) The office of Advocate is a statutory office and the provisions of the Government 9
Sector Employment Act 2013 relating to the employment of Public Service 10
employees do not apply to that office (except as provided by this section). 11
(6) The Advocate holds office for such term not exceeding 5 years as may be specified 12
in the instrument of appointment, but is eligible (if otherwise qualified) for 13
re-appointment. 14
(7) The office of Advocate becomes vacant if the holder: 15
(a) dies, or 16
(b) completes a term of office and is not re-appointed, or 17
(c) resigns the office by instrument in writing addressed to the Governor, or 18
(d) becomes bankrupt, applies to take the benefit of any law for the relief of 19
bankrupt or insolvent debtors, compounds with his or her creditors or makes 20
an assignment of his or her remuneration for their benefit, or 21
(e) becomes a mentally incapacitated person, or 22
(f) is convicted in New South Wales of an offence that is punishable by 23
imprisonment for 12 months or more or is convicted elsewhere than in New 24
South Wales of an offence that, if committed in New South Wales, would be 25
an offence so punishable, or 26
(g) is removed from office under subsection (3). 27
(8) The following provisions of or made under the Government Sector Employment Act 28
2013 relating to the employment of Public Service senior executives apply to the 29
Advocate (but, in the application of those provisions, a reference to the employer of 30
any such executive is to be read as a reference to the Minister): 31
(a) provisions relating to the band in which an executive is to be employed, 32
(b) provisions relating to the contract of employment of an executive, 33
(c) provisions relating to the remuneration, employment benefits and allowances 34
of an executive. 35
10 Functions of NSW Steel Industry Advocate 36
(1) The NSW Steel Industry Advocate has the following functions: 37
(a) to monitor compliance with the requirements of this Act, 38
(b) to monitor whether steel (other than excluded steel) required by this Act to be 39
used in the construction of relevant public works is manufactured to 40
appropriate Australian Standards, 41
(c) to conduct a review of the steel manufacturing and fabrication sector with 42
particular focus on the following: 43
(i) the supply chain capabilities of the sector, 44
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 3 NSW Steel Industry Advocate
(ii) the co-ordination by the sector of research and development and 1
innovation, 2
(iii) the investment in the sector of plant and equipment, 3
(d) to prepare reports in accordance with this Act. 4
(2) The Advocate may, in connection with the exercise of the functions of the Advocate 5
under this Act, make such inquiries and undertake such investigations as the 6
Advocate considers necessary. 7
(3) The Advocate may, by notice in writing, request that any person provide, or require 8
any public authority to provide, the Advocate with information (including 9
documents) relevant to the exercise of the functions of the Advocate under this Act. 10
11 NSW Steel Industry Advocate required to report to Parliament 11
(1) The NSW Steel Industry Advocate is required to prepare, at least once every 12
12 months, a report setting out a State infrastructure plan that identifies future 13
relevant public works, and the steel requirements of those works, and to furnish the 14
report to the Presiding Officer of each House of Parliament. 15
(2) The Advocate is required to prepare, at least once every 2 years, a report on the 16
procurement policies of the State, and whether those policies adequately take into 17
account all costs and benefits related to steel procurement (including costs and 18
benefits related to transport, insurance, maintenance and repair, the environment, 19
employment and regional development), and to furnish the report to the Presiding 20
Officer of each House of Parliament. 21
(3) The Advocate may, at any time, make a report on any other matter arising in 22
connection with the exercise of the functions of the Advocate and furnish the report 23
to the Presiding Officer of each House of Parliament. 24
(4) A copy of a report furnished to the Presiding Officer of a House of Parliament under 25
this section is to be laid before that House within 15 sitting days of that House after 26
it is received by the Presiding Officer. 27
(5) The Advocate may include in a report a recommendation that the report be made 28
public immediately. 29
(6) If a report includes a recommendation by the Advocate that the report be made public 30
immediately, a Presiding Officer of a House of Parliament may make it public 31
whether or not that House is in session and whether or not the report has been laid 32
before that House. 33
(7) If such a report is made public by a Presiding Officer of a House of Parliament before 34
it is laid before that House, it attracts the same privileges and immunities as if it had 35
been laid before that House. 36
(8) A Presiding Officer need not inquire whether all or any conditions precedent have 37
been satisfied regarding a report purported to have been made and furnished in 38
accordance with this Act. 39
12 Staff of NSW Steel Industry Advocate and delegation 40
(1) Persons may be employed in the Public Service under the Government Sector 41
Employment Act 2013 to enable the NSW Steel Industry Advocate to exercise his or 42
her functions. 43
(2) The Advocate may arrange for the use of the services of any staff or facilities of a 44
NSW Government agency and may, subject to the regulations, engage such 45
consultants or contractors as are necessary for the purposes of this Act. 46
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 3 NSW Steel Industry Advocate
(3) The Advocate may delegate the exercise of any function of the Advocate (other than 1
this power of delegation) to any person referred to in this section. 2
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Securing NSW Steel Industry Bill 2017 [NSW]
Part 4 Miscellaneous
Part 4 Miscellaneous 1
13 Annual report by IPART 2
(1) IPART is to prepare, within the period of 6 months after 30 June in each year, an 3
annual report regarding the effectiveness of this Act in achieving its objective during 4
the year that ended on that 30 June. 5
(2) A report by IPART under this section is to include the following information: 6
(a) the percentage of steel sourced from within Australia that is used in the 7
construction of relevant public works carried out by or on behalf of a public 8
authority, 9
(b) the percentage of steel sourced from outside Australia that is used in the 10
construction of relevant public works carried out by or on behalf of a public 11
authority, 12
(c) the estimated additional cost of steel incurred by public authorities as a result 13
of the operation this Act. 14
(3) The Minister is, as soon as practicable, to cause a copy of the report to be tabled in 15
each House of Parliament. 16
14 Act to bind Crown 17
This Act binds the Crown in right of New South Wales and, in so far as the legislative 18
power of the Parliament of New South Wales permits, the Crown in all its other 19
capacities. 20
15 Regulations 21
The Governor may make regulations, not inconsistent with this Act, for or with 22
respect to any matter that by this Act is required or permitted to be prescribed or that 23
is necessary or convenient to be prescribed for carrying out or giving effect to this 24
Act. 25
16 Review of Act 26
(1) The Minister is to review this Act to determine whether the policy objectives of the 27
Act remain valid and whether the terms of the Act remain appropriate for securing 28
those objectives. 29
(2) The review is to be undertaken as soon as possible after the period of 5 years from 30
the commencement of this Act. 31
(3) A report on the outcome of the review is to be tabled in each House of Parliament 32
within 12 months after the end of the period of 5 years. 33
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