Whyalla

Mr HUGHES (Giles) (15:35): Everybody in this chamber, regardless of their political affiliation, realises how difficult a challenge the community of Whyalla is facing and how important it is to retain an operating steelworks in my community. Given the size of the company and the number of people employed, the closure of the steelworks, or closure of the steelworks and the mines, would have a devastating impact. Nearly one-third of Whyalla's labour market would be wiped out in direct job losses, followed by a cascading impact on indirect employment. It would be an unmitigated disaster.

I have said before that the social and economic consequences of closure would far outweigh any assistance provided to ensure the viable future of the steelworks. I strongly believe, despite the challenges, that there is a viable future for steelmaking in Whyalla. The future might involve co-investment by government, which would form part of a restructure to improve productivity and efficiency at the steelworks. To me, co-investment is not a dirty word, but it is clearly a dirty word in some parts of our national media.

The disgraceful editorial in last Friday's Financial Review demonstrates just how far some of our elite have drifted away from the real concerns of the people who live in communities like Whyalla. The editorial wanted a 'quick death' for the steelworks, regardless of the social consequences that would flow. Let the market rip and too bad about destroying a community. Too bad about the job losses. Too bad about all those contractors who have built their businesses over many years to provide services for the steelworks. Too bad about the destruction of value when it comes to the major assets of most people—their house. Too bad about the growth of generational unemployment. Too bad about the cascading negative social impacts.

The mantra of 'just get government out of the way and let the market rip' would in all likelihood lead to the end of structural steelmaking in Australia. It would mean complete dependence on overseas suppliers for steel products essential for our construction industry. Co-investment and changes nationally to steel procurement policy to preference Australian steel should be supported, and if it upsets the free market fundamentalists (the free market Taliban), too bad.

Look at what the conservative government in the UK is considering when it comes to the threat to their steel industry and especially the threatened closure of the Port Talbot steelworks in Wales. The UK business secretary, Sajid Javid, has said that no option is off the table. One of the options that is being considered is the partial nationalisation of the steelworks. Although identified as a last resort, government taking an equity stake is on the table.

When it comes to the future of the steelworks in Whyalla and the future of the Whyalla community, all options should be on the table. Nationally, Labor is saying that we will change steel procurement policy and preference Australian steel for taxpayer-funded projects. Nationally, Labor supports co-investment. In South Australia, we have changed steel procurement policy and we have indicated support for co-investment.

Over the last few days, I organised a meeting of contractors in Whyalla, with the active assistance of Jarrod Starkey, the manager of Whyalla Hose & Fitting Services. The meeting was well attended, informative and constructive. Our contractors are hurting and hurting badly. Our contractors are an essential part of ensuring the ongoing operation of the steelworks. Many of the companies that contract to the steelworks have been built by sustained effort over many years. They are part of Whyalla's economic and social fabric.

The small and medium-sized contractors need assistance to get through this challenging period so they can continue to deliver essential services to the steelworks, continue to provide employment and ensure, in the long term, a viable contractor base in Whyalla. What is needed now is a calm, considered, methodical approach which addresses the immediate issues such as the challenges faced by our contractors while working towards turning the steel business around in Whyalla and getting it on a viable footing for the long term. It can be done.

In conclusion, I want to acknowledge the good work done by John Chapman, the Small Business Commissioner, during his visit to Whyalla, and Geoff Brock, Minister for Regional Development. Both attended the meeting with the Whyalla contractors and followed up with one-on-one meetings to get a very clear picture of the difficulties the contractors are facing.