Grievance Debate

Arrium

Mr MARSHALL (Dunstan—Leader of the Opposition) (15:24): I wish to take the first opportunity that I have to address the parliament on the situation that is unfolding relating to the future of steelmaking in Whyalla. Last week, Arrium, the company that operates the steelworks in Whyalla, issued a market statement about the future of their operations in this state. Ominously, this revealed that one consideration the company may undertake is to place the steelworks into what is termed 'care and maintenance'. What this means, in layman's terms, is that the plant would be shut down indefinitely.

Yesterday, we heard that Arrium is discussing a recapitalisation plan with a major international investor. This is positive news but does not mean we should sit back and simply hope for the best. It has become all too common in recent years to hear of longstanding South Australian businesses now finding it too difficult to compete, for a variety of reasons. General Motors Holden will be closing down in just over 12 months' time. The Port Augusta power station is set to close, with the Leigh Creek mine that services it already shut down.

We simply cannot lose the steelmaking industry from the South Australian economy. I want to say clearly in this chamber that the Liberal Party stands ready to work with the government on whatever is required to ensure the industry's future. This is a matter which will impact the state's economy for decades to come and is far beyond party politics. When we talk about the Whyalla steelworks closing, we are not simply talking about the future of Arrium workers. We are talking about the future of a community—schools, a hospital, sporting clubs, shops, pubs. The list goes on. We need to ensure a bright future for Whyalla, and the key to that is doing everything we can to help Arrium and its workers.

Arrium is a good business which employs talented, hardworking South Australians. However, it is struggling to compete in a globally competitive market. We know that steelmakers can succeed in Australia as evidenced by BlueScope's success in Wollongong but, in order for companies like Arrium to succeed, we need to address some of the key barriers which exist within the South Australian economy. We have to be realistic: there is no silver bullet to solve our economic woes.

I have welcomed the initial findings of the nuclear royal commission and encourage us to debate the opportunities expanding that opportunity will bring to our state. Equally, if we treat the nuclear opportunity as another Olympic Dam, hoping that one single thing will turn our economy around, we are failing to understand what our challenges are now and that no one single hope will be our total salvation.

We need a new mentality in South Australia about how to build a strong, resilient and diversified economy underpinned by jobs in a vast array of industry sectors. We need to be lowering taxes, removing red tape, fostering entrepreneurship and investing in productive infrastructure so that businesses have the right policy settings to compete and to thrive. We need to resolve the issues that are causing volatility in our energy markets and continually pushing energy prices higher and higher in South Australia, in the meantime costing us jobs and opportunities in this state.

South Australians are resilient and resourceful. With the right government policy settings and industry support, we can turn our economic troubles around and start creating the sustainable long-term jobs that our community needs. The state Liberals are committed to working with all stakeholders, including Arrium and the federal and state governments, to ensure that the necessary changes can be made and the appropriate support is made available to protect the jobs of the people of Whyalla and to ensure Arrium's South Australian businesses continue on the path to becoming successful operations once again.