Arrium

The Hon. T.J. STEPHENS (15:14): I seek leave to make a brief explanation before asking the Minister for Employment and Manufacturing and Innovation questions about the future of Arrium steelworks in Whyalla.

Leave granted.

The Hon. T.J. STEPHENS: I draw the minister's attention to the article on page 2 of today's Advertiser, which refers to comments made by the secretary of the commonwealth Treasury, John Fraser, who stated that it looked as though Arrium would be a smaller rather than larger plant following its sale.

It's acknowledged that with the recent change in federal government procurement rules demand has increased, which should lead to greater production. I believe the federal government is playing its part in ensuring the use of Australian steel in government projects to the tune of $144 million, which include the Adelaide to Tarcoola railway track and the Adani coalmine railway project in Queensland, currently at risk due to Queensland Labor government inaction. My questions to the minister are:

1. Does he support mandating the use of Whyalla steel in South Australian government projects?

2. Does the minister support the Adani coalmine project in Queensland, which will see $74 million worth of steel procured from the Whyalla steelworks?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (15:16): I thank the honourable member for his questions. I sense a reluctance to ask these questions, but he has been put up to ask them, so I congratulate him for doing so.

He raises comments that were made by the federal government casting doubt and pessimism upon Whyalla. Do you know what, Mr President? That's not the attitude we take in South Australia. What you won't hear is us talking South Australia down. That's not the attitude that we take. We know that some in the Eastern States take that attitude, and we know that often we get stunned silence from the South Australian Liberal Party when those in the Eastern States talk us down. That's not the attitude that we take. Tabled in this chamber today was a ministerial statement from the Treasurer that gave a comprehensive update.

Members interjecting:

The PRESIDENT: Order!

The Hon. D.W. Ridgway interjecting:

The PRESIDENT: Will the Leader of the Opposition stop pointing his finger and interjecting across the floor? Order!

The Hon. K.J. MAHER: As I was saying, the Treasurer in another place has made a comprehensive ministerial statement today, which I have tabled in this place, about where the sale process for the Arrium Group is up to. I know the Treasurer noted in his statement that he continues to have regular contact with the federal industry minister, Mr Arthur Sinodinos, about ensuring that the state and federal governments are both doing everything they possibly can to ensure Whyalla's future. That's why comments we have seen from federal bureaucrats in the Eastern States are so very disappointing. I would encourage my colleagues opposite—not just in this place but in the lower house—to speak out against the criticism we get from the Eastern States, particularly some of their mates in the federal government. I would encourage them to do that.

In relation to using steel produced in South Australia, yes, we as a government encourage that and we are keen to see anything that we have control over helping Whyalla out as much as possible because it is critically important for South Australia, and quite frankly for Australia, to have a sovereign steelmaking capacity. Whyalla, as a major town in South Australia, needs the support of both the state and federal governments.