Ministerial Statement

Whyalla Steelworks

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:07): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: I rise today to announce the South Australian government's proposal both to support the future of Whyalla and the Upper Spencer Gulf region and to enable Australia to retain an ongoing structural steelmaking capability. Due to the current caretaker provisions at the federal level, this morning I have written to the leaders of both major parties outlining a proposal to provide a joint state and commonwealth funding assistance package to a new owner of Arrium.

This is an issue of national significance and requires a national response. Without this support from state and federal governments, it is our belief that steelmaking in Whyalla is unlikely to continue. The state government today is committing $50 million in funding and is seeking a bipartisan commitment from both major parties for a contribution of $100 million towards a funding facility to support a new owner of the Whyalla operations. This would mean the total funding facility being available to a new purchaser would be $150 million, which we expect would be matched by the purchaser, subject to appropriate terms and conditions.

We believe these terms should include a requirement that investments support the long-term sustainability of steelmaking at Arrium and maintain the company's operations in South Australia. Our advice from the Steel Taskforce is that a $150 million funding facility, along with the restructuring work that is being undertaken by the administrator, should be adequate to enable a new owner to build an ongoing, sustainable steelmaking business in Whyalla. This is a large and important request, but would be allocated to technological efficiencies or upgrades in the Whyalla operations to ensure that taxpayer money is spent to benefit the thousands of jobs at Arrium and in the wider supply chain.

I would also like to take this opportunity to update the house on the progress of the Whyalla small business loan scheme, which was announced in May. As of yesterday afternoon, 13 formal applications for assistance have been received and a further nine companies are in the process of applying. Seven loans totalling nearly $3 million have been approved, with many others very close to finalisation. I would also like to take this opportunity to highlight the tireless and unwavering advocacy from Eddie Hughes (member for Giles) on both of these issues. I look forward to further updating the house as these matters progress.