Whyalla Steelworks

The Hon. F. PANGALLO (15:07): I seek leave to make a brief explanation before asking the Minister for Primary Industries and Regional Development, representing the Minister for Infrastructure in another place and the Premier, a question about the Whyalla Steelworks.

Leave granted.

The Hon. F. PANGALLO: Recently, GFG Alliance, with the assistance of the South Australian government, received $63 million in funding from the federal government, ostensibly to upgrade the 70-year-old steelworks, which has not seen much, if any, modernisation in recent years under its owner, Sanjeev Gupta.

Three weeks ago the blast furnace shut down. It is my understanding that, as of today, it is barely operating at nowhere near its capacity and the production of steel has all but ground to a halt. Up to 1,000 workers on day shifts have had their hours reduced to 7.5 hours, in effect a pay cut of around 28 per cent. There is concern that it may not be able to be fully operational while GFG works on establishing its promised electric arc furnace to complement the government's much-touted hydrogen plant, which is still years away.

In the meantime, the price of iron ore has tumbled 14 per cent from a year ago to under $US100 a tonne, and is tipped to keep falling. China is reducing its steel production because of a surplus, and there are fears cheap steel may soon be dumped here. Once again, the mood in Whyalla is full of uncertainty, if you read all the posts on the Whyalla Facebook page. My questions to the minister and Premier are:

1. While infrastructure minister Tom Koutsantonis was enjoying Mr Gupta's hospitality in GFG's corporate suite at the Gather Round match between Port Adelaide and Essendon on Friday, did Mr Gupta and Mr Koutsantonis discuss the current problems besetting the steelworks?

2. Is the government aware of the operational problems currently being experienced at the steelworks that could lead to job losses in the one-industry town unless rectified?

3. Has the state government handed over the $50 million it has set aside for the steelworks?

4. Considering the seriousness of the blast furnace problem, can Mr Gupta deliver on his promises?

5. Are the jobs of all steelworkers, including contractors, at the plant as safe as Port Adelaide's highflying coach Ken Hinkley and that deft handballer, the Premier?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:10): I will refer the question to the ministers in the other place and bring back a response.