A $75 million State Government manufacturing fund has ignited heated debate in Western Australia about what genuinely qualifies as 'Made in WA' products, particularly concerning steel production.
InfraBuild's Position in WA Manufacturing
Billionaire British industrialist Sanjeev Gupta's company InfraBuild finds itself at the centre of controversy after securing work on major projects like Metronet, despite operating without a furnace or mill within Western Australia. The company previously doubled capacity at its Forrestfield factory after winning Metronet contracts.
The situation has drawn increased scrutiny given that InfraBuild's stablemate, OneSteel - the Gupta business operating Whyalla Steelworks - entered administration earlier this year. This development makes InfraBuild's potential access to state manufacturing funds particularly contentious.
Government Stance on Local Content
Manufacturing Minister Amber-Jade Sanderson acknowledged that Western Australia currently imports all its steel, describing this reality as "partly the driving motivation for supporting recycled steel and green iron in Western Australia."
She defended InfraBuild's involvement, stating the company had "played an important part in the delivery of MetroNet and delivering local content and local jobs for our transport network."
Premier Roger Cook previously characterised 'Made in WA' as a vision rather than a "birthmark," clarifying that the label doesn't represent an accreditation similar to 'Made in Australia'.
Opposition Calls for Greater Scrutiny
Shadow treasurer Sandra Brewer has demanded greater scrutiny over what qualifies as 'Made in WA', expressing concern that without clear parameters, the government risks wasting taxpayer money on programs focused more on marketing than genuine value for Western Australia.
"Taxpayer's money must always be spent for greater public benefit, and it remains to be seen if Made in WA generates more than just PR spin," Ms Brewer stated.
She pointed to the new C-Series rail cars, which were fabricated in India before being shipped to Perth, as an example of the blurred lines in local manufacturing claims.
The controversy has intensified with revelations that former senior Labor minister Alannah MacTiernan has been hired by InfraBuild to help secure a larger portion of the State Government's local manufacturing spending.
When questioned about how much value-adding InfraBuild actually performs within Western Australia for projects like Metronet, a company spokeswoman highlighted their creation of more than 50 new WA jobs and their processing activities including cutting, bending, and making reinforcing mesh and steel pile cages. However, the company manufactures the reinforced steel itself in Victoria and New South Wales before shipping it to WA for further processing.
The WA Government earlier this month committed to developing a local green steel industry through preferential treatment on major projects, making the current debate about manufacturing definitions particularly timely for the state's industrial future.
