Question Time

Whyalla Steelworks

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:11): My question is to the Premier. Is the Whyalla Steelworks blast furnace currently operational and, if not, does the Premier know when it will be back online? With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. V.A. TARZIA: It was reported last week that the Whyalla blast furnace is offline again, with no date for its return to steelmaking.

The Hon. P.B. MALINAUSKAS (Croydon—Premier) (14:11): I thank the Leader of the Opposition for his question, because this is an important matter to this state and it deserves attention and scrutiny. The short answer is that, yes, we understand there have been issues more recently again with the blast furnace, as has been reported. I think the initial report came from the Adelaide Advertiser and we have seen other media reports since then as well.

There is no doubt, I think it is fair to say, that there are a number of people within the Whyalla community who are concerned about events that are unfolding within GFG and at the Whyalla Steelworks. The government in turn is making active inquiries and conducting some thorough policy work to contemplate how government may play a role to combat the challenges that are currently being experienced at the steelworks.

It is important for people to remember that the steelworks is a critical piece of industrial infrastructure not for South Australia but for the country. We know that there are a range of products that only the Whyalla Steelworks is capable of producing for the steel sector that the rest of the nation relies upon, not just in a national defence context but also in a civil construction context. Beyond that, of course, it is economically central to not just Whyalla but the Upper Spencer Gulf more broadly.

There have been a number of reports that have been made in the public realm in recent weeks around the steelworks not being able to pay their creditors on time; that is something the government continues to actively monitor. Through the Steel Task Force, which is chaired by Mr Bruce Carter, we have access to a range of pieces of information as a government that get presented to cabinet to keep us abreast of the situation at the steelworks.

We have made plain, both publicly and privately, that we want GFG to succeed. For some time now—in fact, for a very long time now, ever since their big reveal made in the end of 2018 if my memory serves me correctly—GFG have had substantial transformation plans for the steelworks that are critical. In fact, it is this government's assessment that the transformation of the Whyalla Steelworks is essential to the long-term sustainability of that facility. We want to see GFG succeed to realise those transformation plans.

The Hon. V.A. Tarzia interjecting:

The Hon. P.B. MALINAUSKAS: I answered your question regarding the furnace. We have received advice that they are also, again, experiencing struggles with the blast furnace. We want to see GFG succeed, I think the whole state wants to see GFG succeed, but the state government, I can say, is planning for a whole range of different circumstances. We have contingencies in place to contemplate what government actions may or may not be necessary into the future in a way that is diligent and responsible considering the importance of this enterprise.

We believe that steelmaking and ironmaking have a long-term future in Whyalla. That is one of the reasons why we have the Hydrogen Jobs Plan. The Hydrogen Jobs Plan is not dependent upon the operations of GFG—quite the opposite—but the best opportunity to succeed in the long term for steel production in this country is to do it in a decarbonised form, and we will collaborate with whoever owns that steelworks to achieve that end.