Arrium

Mr HUGHES (Giles) (14:48): My question is to the Minister for Mineral Resources and Energy. Can the minister update the house on the strategic review announced by Arrium and its implications for the great city of Whyalla?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:49): I am glad to see the member for Stuart nodding, because he wouldn't play politics with this. I thank the member for his question. Arrium did inform shareholders this week about the recent steps taken to reduce costs at South Australian operations that ensure this company continues to export iron ore from the Middleback Ranges through the port of Whyalla. Arrium's continued commitment to mining in our state and exports of iron ore at levels that are triple the throughput of just a few years ago are great news for Whyalla and the Upper Spencer Gulf. Arrium's announcement included underlying earnings for the current financial year—

Mr KNOLL: Point of order, Mr Speaker. The information that the minister is referring to is part of Arrium's website as an ASX release dated 15 June, entitled 'Mining restructure, results update and strategic review'.

The Hon. A. KOUTSANTONIS: I disagree, sir.

Members interjecting:

The SPEAKER: Alas, I don't have the member for Schubert's—

The Hon. A. KOUTSANTONIS: Thank you, sir. Arrium's announcement included underlying earnings for the current financial year even stronger than expected in the second half performance of the financial year ahead. You think that would be good news. You would think that members opposite would celebrate that, and it should have been a confidence boost for the state at a time when a fall in commodity prices has put a lot of pressure on South Australian miners—not only here but across the country.

As part of its announcement, Arrium also announced a strategic review of all of its business operations, to adopt an appropriate corporate restructure to deal with these costs. It is a sensible and prudent approach, you would think, under the current environment. Unfortunately, in the absence of bad news in that ASX announcement, the naysayers had to invent shadows of doubt for the people of Whyalla.

It is bad enough that some in Canberra have invented scenarios that Whyalla would be wiped off the map, yet here we go again making up horror scenarios to scare South Australians and cast doubt on what should have been embraced as good news for the people of Whyalla.

Ms CHAPMAN: This is clearly debate about other people's views, unidentified, and is not consistent with the question which was on the Arrium review.

The SPEAKER: Deputy leader, I will listen carefully to what the minister has to say. In the meantime, I will warn for the second and final time the member for Hartley. I call the minister.

The Hon. A. KOUTSANTONIS: Only this week, we had some people in this place wilfully speculating about the outcome of the strategic review announced by Arrium. They said this should be ringing alarm bells for us here in South Australia—alarm bells, Mr Speaker. Even though the company specifically forecast an improved performance in Whyalla, improved performance in its steel division and a forward plan for continued exports out of Whyalla, members opposite said alarm bells should be ringing. Well, how's that for a confidence boost for the people of Whyalla? What do we see today? The chief executive of Arrium, Mr Roberts, in an unprecedented way putting out a release saying:

…that speculation that the review announced by the company on Monday specifically includes the closure of the Whyalla Steelworks is off the mark.

He goes on to say:

From a Whyalla perspective, the announcement does not include any material job losses for either the Mining or Whyalla Steelworks businesses.

An honourable member: Fantastic!

The Hon. A. KOUTSANTONIS: Exactly—it is fantastic. The member for Stuart wouldn't get up there and say, 'This should be cause for alarm bells to be rung,' would he? No, because he wants the Upper Spencer Gulf to thrive. It is good for the company and it is good for the South Australian and the Whyalla economies. I know good news is not welcome on that side of the house. I know that good news undermines the exaggerated claims about the narrative of our state economy, and I invite members opposite to use those incredible results and the strategic review to help us lure Arrium to South Australia.

Mr GARDNER: Point of order, Mr Speaker: under 98, the Treasurer is debating.

The SPEAKER: I uphold the point of order.

The Hon. A. KOUTSANTONIS: We should be using this strategic review and the comments by Arrium to encourage them to move their headquarters of operations to Adelaide, to South Australia, where their steelworks and mines are being prosperous, are growing and are integral to their business, rather than saying that their strategic review causes alarm bells to be rung.