Whyalla Steelworks

Mr McBRIDE (MacKillop) (14:40): My question is to the Premier. Could the Premier please inform the house how it used KordaMentha and BlueScope to help it with its decision-making around Whyalla and a recent announcement today? With your leave, Mr Speaker, and the leave of the house, I will explain.

Leave granted.

Mr McBRIDE: One of the important things that I would hope that the government has done here—and all credit to their strong convictions and speed at which they have moved today, and thank you for this—and one of the things I want the government and this house to also understand is that when you talk about KordaMentha, it is a financial guru; BlueScope is a steel-making business. One of the things I hope you will allow them to do for you is to look at the sensitivity analysis of every dollar that's going to be spent there, what the future may look like, and I am hoping that that will then translate to a good outcome for this state and this government.

The Hon. P.B. MALINAUSKAS (Croydon—Premier) (14:41): The member for MacKillop asks a really important and thoughtful question, and I thank him for it because it goes to the heart of some of the challenges that we have and why we have responded in the way that we have, and some of the preparatory work that has been put in place.

In recent minutes, I think, there has been a statement released by the chief operations officer of BlueScope Steel. BlueScope, as the member for MacKillop accurately identifies, is an Australian-listed company, it is an Australian entity which produces Australian steel principally out of its operations in Port Kembla but also in other parts of the country. There has been a sense of stewardship between BlueScope—an affinity between BlueScope and the operations in Whyalla now for some time. GFG has called on BlueScope expertise, particularly around the blast furnace, and there have been other issues in terms of the acquisition of coke and other critical elements to keep the steelworks going. That relationship is almost like a brotherhood or sisterhood between the two organisations because there are only two of them in the country, and that is to everyone's credit.

BlueScope have released a statement just in recent moments that refers to a statement, that was in my media release and also in remarks that I made here today in my ministerial statement, that KordaMentha has advised the state government that it intends to appoint Australian steelmaker, BlueScope, to act as a special adviser. That is a relationship that exists between KordaMentha and there would be a special adviser, and it may be BlueScope, and BlueScope have put out a statement that I guess implies interest in being able to do that. That would be a great outcome.

It's important for people to appreciate that the administrator operates independently owing to its obligations under the Corporations Act. The administrator is no-one's puppet, including the government's. While we put the company into administration, the administrator does not work for the government; it works according to its duties. But that means that KordaMentha is independently around to make its own judgements as the administrator, including appointing a special adviser, which may indeed be BlueScope. That would be a great outcome if it were to transpire.

Without me compromising the independence of the administrator—which we would never do—I would say that I keenly anticipate any announcements that KordaMentha may make about the relationship it forms with any would-be special advisers on the operation of the steelworks. I also no longer anticipate but welcome the statement that has been made by BlueScope, only moments ago, that speaks to their interest in Whyalla.

That is a good thing. BlueScope is a great Australian company. It released strong financial results only on Monday. At the golf on the weekend I was very grateful to have as guests creditors of Whyalla and also BlueScope Steel CEO, Mr Mark Vassella. I am very appreciative of the relationship that we have and the interest he has in the steelworks operations in Whyalla, and I hope it continues for some time to come.