Arrium

Mr VAN HOLST PELLEKAAN (Stuart) (14:53): My question is to the Minister for Mineral Resources and Energy. When the minister publicly stated on Friday 19 February that, and I quote, 'The commonwealth government should be doing a cost-benefit analysis of investing in Whyalla,' had he already been briefed by Arrium that they were in discussions with an equity partner for more than $1 billion worth of private investment, which was announced on 22 February?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:54): I am not going to reveal my private conversations with Arrium to the house, but I will say this: it is important that we have a partner in the commonwealth government to invest in Whyalla. The point I was trying to make to the media and the people of this state is that if the steelworks were indeed shut, the social cost to the state and the country would be dramatically higher than any cost of an investment in Arrium to maintain the ability of the local community to work and be prosperous.

In terms of any negotiations we're having with Arrium, as I said publicly on radio, we are in deep discussions with Arrium about what it is they are attempting to do as, I understand, the opposition have been briefed by Arrium as well. If they haven't, they should say so, but it is my understanding that they have. People need to be able to come to the treasurer of the state or the government and talk about issues facing their company without it being canvassed publicly in the chamber after the event.

Either way, whatever private equity raising Arrium is conducting doesn't change the fact that there needs to be an investment in the city of Whyalla, and that investment needs to be in a manner that maintains the long-term interests of the state by having the steelworks operational in Whyalla. It's no good being a nation that is one of the largest iron ore producers in the world if we can't manufacture our own steel.

The New South Wales government has done its part by giving payroll tax concessions. We give tax concessions in terms of royalties and other concessions to Arrium, and I have heard members opposite say that we should have done that. We have been doing that for years, and our concessions are larger than those offered by the New South Wales government to BlueScope.

We are committed to the people of Whyalla. The local member of parliament, the member for Giles—

Mr Pederick: How much Chinese steel have you brought in?

The Hon. A. KOUTSANTONIS: —is committed to the people of Whyalla and I will point out that, while members opposite are talking about Chinese steel, I note in The Advertiser today that Liberal treasurers across the country were asked whether they would adopt South Australia's procurement processes to buy the highest quality Australian Standard steel, and the one successful Liberal government in the state refused to do so.