Government pledges $300m to save steel manufacturing

The Federal Government has proposed $300 million in funding for Australian steel giants BlueScope and OneSteel under its steel rescue plan as part of the carbon price package.

Legislation on the steel plan was announced yesterday by Climate Change Minister Greg Combet said the plan would help safeguard steel makers from the strong dollar and rising input costs.

The plan was developed to ease pressures on the local steel industry and contain the flow-on effects to other industries, and ensure a steel making future in Australia.

Under the plan, steel makers BlueScope and OneSteel will receive $300 million to become more innovative and competitive.

The steel plan has not yet received backing form the opposition or the Greens.