Whyalla Steelworks

Mr HUGHES (Giles) (15:31): I rise today to talk about the latest round of proposed job losses at the Whyalla steelworks and, in contrast, a set of very positive state government initiatives to assist the domestic steel industry during this very challenging period. Before discussing the job losses and the policy initiatives, I would like to thank all those members who have passed on their condolences at the death of my brother. Your words of support from across the political spectrum were deeply appreciated.

For most of us who live in Whyalla, the iron and steel industry goes beyond just a set of economic variables; it is a part of who we are. Both my late brother and myself as young men started our working lives in the steel industry. My mother and father moved over 15,000 kilometres to settle in Whyalla and work in the steel industry. One of my sons is about to finish his apprenticeship in the steel industry. For me, the viable future of the domestic iron and steel industry is deeply personal.

Personal though it is, the future of the iron and steel industry in Whyalla revolves around the basics of iron ore prices and steel prices, around supply and demand, and also around the policy initiatives that we choose to pursue as a state and as a nation. What support do we provide for our manufacturing industry, battling as it is on a totally unlevel playing field? What importance do we ascribe, as a nation with massive iron ore exports, to the maintenance of domestic steel production? Do we believe it is reasonable to become totally dependent on importing steel? We in Whyalla do not believe that.

We now have a far clearer indication of the job impact of the announced $100 million in cuts to the steelworks. Two hundred and fifty jobs will go on top of the previously announced 50 jobs. This comes on top of a series of job cut announcements at the Middleback mining operations 50 kilometres to the west of Whyalla and earlier staff cuts at the steelworks. To provide some perspective, imagine if Nyrstar at Port Pirie closed. The direct job losses would be roughly equivalent to the job losses experienced at Whyalla once the latest cuts have been implemented. Think about that for a moment.

We cannot do anything as a state about iron ore prices or steel prices, but we can do something about state procurement policy and a range of other initiatives to assist with the ongoing viability of the steel industry in South Australia. Last year, I raised as my number one priority for Whyalla a reform of our procurement policy on steel in major state-funded construction projects. With the announcement last Wednesday at the Whyalla steelworks by the Treasurer, we now have the nation's best steel procurement policy. As a measure of just how good the policy is, Arrium chief executive, Steel, Mr Hamer, and chief executive of the Australian Steel Institute, Tony Dixon, were present at the launch and strongly endorsed the policy.

Enforcing Australian standards and a robust third-party certification process will deliver a significant competitive advantage for the Australian steel industry. The state government will provide over $320,000 to create a third-party audit process as part of a $4.3 million commitment to develop a steel task force. The task force will work with the steel industry to ensure we do all in our power to support steel production in South Australia.

We now want to see the other states and the national government replicate South Australia's nation-leading steel procurement policy so that we have a long-term competitive steel industry in Australia. The federal government has still not addressed the deficiencies with our anti-dumping regime, and that needs to be done with a far greater sense of urgency. The establishment of the steel task force, the major overhaul of steel procurement policy and the recent announcement about developing a framework with Arrium to maximise in the longer term third-party use of Arrium's harbour, all represent a serious commitment to Whyalla's future.

Time expired.