GFG Alliance

Mr TELFER (Flinders) (14:31): My question is to the Treasurer. Is GFG Alliance the government's preferred operator of the Whyalla Steelworks? With your leave, sir, and that of the house, I will explain.

Leave granted.

Mr TELFER: It was reported in TheAustralian Financial Review today that the group's plant in the Czech Republic is facing insolvency proceedings, its plant in Hungary is the target of a creditor-initiated liquidation suit, and its plant in Romania has been idle for months. Its Australian steel business, InfraBuild, slumped to an $18.6 million loss.

The Hon. S.C. MULLIGHAN (Lee—Treasurer, Minister for Defence and Space Industries) (14:31): It is not a matter of whether they're preferred or not preferred, they're the operator of the steelworks and until something very significant changes, that is the status quo. We want the steelworks to succeed in South Australia. We want the steelworks to remain operational and producing steel products, which are not produced anywhere else in Australia. This is good not just for Whyalla and the state's economy, this is good for the nation's sovereignty and the nation's sovereign economic capability.

Yes, we appreciate that these current times are challenging for GFG. We are trying to be as accommodating as is reasonable because we want the plant to remain in production, the workers to remain employed and for these products to continue being produced for the benefit of our nation. That is why we have taken the approach of trying to work closely with GFG in order to get them back on track with their obligations to the community, to their suppliers and to the government and those efforts continue.