WA businesses and unions have labelled a small contract awarded to Perth fabrication business AGC a drop in the ocean.

The contract was announced today by Premier Colin Barnett as evidence benefits were starting to flow to local fabrication businesses from the Gorgon Gas Development.

While welcoming the contract, AMWU State Secretary Steve McCartney said the 7,500 tonne contract was a drop in the ocean, compared to the more than 250,000 tonnes of steel the Gorgon project was having fabricated overseas.

“While the AMWU welcomes all steel contracts and all steel jobs, the Premier needs to be a little humble about this announcement, when you consider it represents less than 3 per cent of the total steel required for the Gorgon project alone,” Mr McCartney said.

“The contract is also a drop in the ocean, when you consider that our local fabrication industry has the capacity to manufacture more than 250,000 tonnes of steel per year.

“AGC has made more than 200 workers redundant since Mr Barnett came to power and it is difficult to see how this work will bring back lost apprenticeships and jobs to AGC and the other empty workshops in the area.”

Australian Steel Institute WA Manger James England said that the Barnett Government should back Labor’s Skilled Local Jobs bill which would ensure the work that local industry had the capacity and capability to perform, was done in WA.

“Local fabrication businesses are not getting the pipeline of work they need to create the jobs and apprenticeships our young people need to develop their skills,” he said.

“Local businesses need a clear stream of work to invest and train workers and we need a long term solution, rather than a few small short term contracts.”