Arrium

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:25): No, sir, another question.

The SPEAKER: Another question.

Mr MARSHALL: Thank you. My question is to the Premier. Does the Premier still believe that there will be no significant job losses as a result of the strategic review currently being undertaken by Arrium?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:26): I have never said that there will be no significant job losses as a consequence of the review by Arrium. What I said when I was asked was that that was not the purpose of the review—to undertake a massive job shedding exercise. The purpose of the review by Arrium, and I think a very sensible purpose, is to look in a clear-sighted way at the fact that the price of iron ore is very low and it has to make sure that its costs of production are indeed lower so that it can turn a profit and ensure the long-term sustainability of its business.

Now, as I also said yesterday, you would be worried if Arrium was not undertaking a review of that sort. That would tell you that it had actually accepted that it was impossible to make changes that were going to ensure that their costs of production were below the price of iron ore, and that would be a very worrying sign indeed.

We are deeply engaged with Arrium. We have a task force that has been set up for this purpose. We are engaged with them in discussions about how we can contribute to the review, and how we can partner with Arrium in a range of ways to ensure its long-term sustainability; and this is something, as we are engaged with all of the Upper Spencer Gulf towns and cities and the particular industries that sustain them, that receives our constant and diligent attention, and it is our intention to maintain our contact with that organisation.

I note, I think, the remarks that are reported from the chief executive of Arrium today, or at least one of the representatives of the company, who suggested that it was not their intention to engage in major job shedding. That is welcome to hear that news. Of course, that cannot be ruled out because of the nature of the international commodity market in which they are deeply involved, but we will be a willing partner.

We understand and assert a role for government in partnership with business. We do not for ourselves take the position of those opposite, most strongly represented through the leader, which is to take your hands off the wheel and hope that something turns up. We are an active partner with the private sector to create jobs here in South Australia—

Mr Pisoni interjecting:

The SPEAKER: The member for Unley is warned the second and final time.