Steel Industry

Mr HUGHES (Giles) (15:26): Last year, I spoke in this house on a number of occasions about the plight of the steel industry in Whyalla and the challenges faced by Arrium's iron ore export operation. I indicated that the job losses that have happened and whereabouts it has happened amounted to the equivalent of the number of jobs that would be lost if the smelters in Port Pirie closed. I said that would be seen as a disaster for that community and, clearly, the job losses to date are a disaster for the Whyalla community. I said that the job losses were devastating but it was not clear whether this was the end of a very trying period, given the ongoing uncertainty that surrounds both the iron ore export operation and the steelworks.

Whyalla is a member of the Upper Spencer Gulf Common Purpose Group. As the member for Giles, I sit on a forum of elected members hosted by the Upper Spencer Gulf Common Purpose Group. The mayors of Whyalla, Port Augusta and Port Pirie participate in the forum, as does the member for Stuart, the member for Frome and the member for Grey. The purpose of the forum is to provide an opportunity for elected representatives from across the three levels of government to discuss current initiatives and potential collaboration that might support growth, economic diversification and the sustainability of the Upper Spencer Gulf.

We recognise that, despite our different political alignment, we have a mutual interest in the economic, community and environmental prosperity of the Upper Spencer Gulf and in securing the future of Whyalla, Port Pirie and Port Augusta. We recognise that if one suffers we all suffer, and the whole region depends on the future of the three cities. Clearly, at the moment, the community that is suffering is Whyalla. It is worth providing a quick sketch of the current economic circumstances of the three cities in order to help illustrate Whyalla's position.

The Mayor of Port Pirie, John Rhode, recently said that Port Pirie's economic future is assured following the state government's underwriting of the Nyrstar smelter transformation to a new multimetals recovery facility. He went on to thank the state government for underwriting a more positive future for Port Pirie.

Port Augusta has been hit by the inevitable closure of the brown coal thermal power station and that has happened sooner than anticipated. Approximately 200 direct job losses in Port Augusta is the result. On the plus side of the ledger, Sundrop Farms continues to expand and will end up as a major employer. The state government is investing in the expansion of the Port Augusta prison, which in turn will generate additional jobs. There are a number of potential renewable energy projects.

Port Augusta remains the administrative hub for the broader region and it has advantages flowing from being at the national crossover point for east-west and north-south vehicle movements. In other words, its future is assured. I think any objective analysis would indicate that Whyalla is currently the city that needs significant support. The state government is providing leadership when it comes to addressing the challenges faced, especially on working towards securing the future of steelmaking.

High-level negotiations are taking place between Arium and the state government, and the outcome of those negotiations will determine the shape of any potential assistance. Just as the state government did not walk away from Port Pirie in its hour of need, we will not walk away from Whyalla and we will do all in our power to assist.

We are holding a steel summit next week to discuss the new steel procurement policy—a policy that has been acknowledged by the steel industry as the best in the country. I say again, the federal government needs to replicate our policy at a national level and it needs to address the weakness in our anti-dumping regime.

Probably the most important initiative to date to assist with the diversification of Whyalla's economic base is the agreement between the state government and Arium to develop a framework to facilitate third-party use of the Whyalla harbour. That particular initiative is likely to generate very positive long-term benefits for Whyalla, the region and the state.