Whyalla Steelworks

The Hon. V.A. TARZIA (Hartley—Leader of the Opposition) (14:37): My question again is to the Premier. Has the Premier sought or received advice as to whether GFG could pay its debts when they fall due and payable? If so, when did he receive that advice?

The Hon. P.B. MALINAUSKAS (Croydon—Premier) (14:37): The advice that the government has received is largely from the Steel Task Force through to the cabinet and is in confidence, as the Leader of the Opposition is well aware.

The Hon. V.A. Tarzia interjecting:

The Hon. P.B. MALINAUSKAS: That's right—that's the way the cabinet process works. The cabinet process is one that we treat pretty seriously in terms of the information that comes into it. But what I would say, as I referred to in my previous answer, is that the Steel Task Force provides us advice about the state of OneSteel Manufacturing in terms of its financial credibility. I think that advice wouldn't surprise anybody. There are countless businesses not getting paid. People are doing work and they are not getting paid for it. In fact, there are people who are paying for work in advance, and they are not having the work done by GFG and contractors. That is in full public view, so it's hardly surprising that the state of affairs for OneSteel Manufacturing financially is not good.

But as big of an issue is the state of the steelworks in its operations. This is an old and ageing plant. It requires care and maintenance, no different to any other piece of machinery. When that's not being done, it compromises its ability to operate. For a piece of technology like a blast furnace, that is not a good position to be in. These blast furnaces are designed to turn on and then never turn off. You don't want to be tinkering with it. If that were to turn off, that would be very problematic, unless it was done in a deliberate way. We now have people in GFG, in the steelworks, who are putting the work into the blast furnace and its ongoing operations, and we hope to be able to stabilise it as best as possible, but now is the time to act so as to avert more problems arising into the future.