House of Assembly: Wednesday, November 13, 2024

Contents

Question Time

Whyalla Steelworks

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:02): My question is to the Premier. What practical outcomes resulted from the Steel Task Force in-depth meeting last Friday?

The Hon. P.B. MALINAUSKAS (Croydon—Premier) (14:03): I thank the Leader of the Opposition for his question because this is obviously a very important matter for the state and, indeed, it is an important matter for the country. As I foreshadowed publicly mid last week and have spoken about in the media since then, on Friday representatives of the Steel Task Force met with myself and the Minister for Energy and Mining just to get the latest update in regard to the progress of the steelworks.

As I enunciated at a press conference yesterday to a question I received from Rory McClaren, I think it was, the update we received on Friday regarding the steelworks' operations is largely consistent with those that we had received prior to that. We are obviously aware that GFG have entered into payment plans with a range of creditors in South Australia, particularly the larger creditors that are particularly important to the operations at the mine site. That work is in progress and in train, but we want to see evidence that that heads in the right direction. There are still very serious questions for GFG to answer in that regard.

The real focus, from the state government's perspective, is on the matters that we reasonably can control. If we controlled it, we would obviously prefer that people on the ground in Whyalla were getting paid on time. We would prefer it if the state government was being paid on time in terms of the debts owed to the state, but what we have to focus on are the most immediate issues that we can really control as state government, and top of mind of course is preparing and planning for any circumstances that might emerge.

Our hope is that GFG can get things back on track. Since the Friday meeting, I received a report yesterday that work is still in train and there are signs of improvement in terms of the operations of the blast furnace and getting it back up and running, but maybe the Minister for Energy and Mining can provide more detailed feedback on that. What we are focusing on is all eventualities.

We hope GFG is able to recalibrate its position, if I put it mildly, in terms of its position with various creditors around the state, but what we've got to do is prepare for every possibility. That includes engaging with the federal government, which has happened at the highest levels. I have spoken to the Prime Minister about it, the Minister for Energy and Mining is dealing with his equivalent counterpart in Minister Husic from the commonwealth, and this is something we remain committed to.

The other element, of course, that occupies a lot of the government's mind in regard to this area is what we are doing in and around the State Prosperity Project in a way that will have a particular benefit for the Upper Spencer Gulf more broadly, not just in Whyalla but also in Pirie and Port Augusta, which I know that both the member for Giles and the member for Stuart are actively engaged on. That also includes the government's Hydrogen Jobs Plan, which is obviously a very substantial undertaking and an exceptionally complex one as well. Of course, there are challenges—there were always going to be—but we remain committed to the project and it is something we are really quite excited about, particularly as milestones get met as we get closer towards major construction starting on that plant, which we hope will be next year.