Legislative Council: Tuesday, September 10, 2024

Contents

Whyalla Steelworks

The Hon. F. PANGALLO (15:12): I seek leave to make a brief explanation before asking the Minister for Primary Industries and Regional Development, representing the Minister for Energy and Mining in the other place, yet another question about the grave situation at the Whyalla Steelworks.

Leave granted.

The Hon. F. PANGALLO: In the past 48 hours I received further disturbing information about the financial woes plaguing the Whyalla Steelworks and local contractors. A major laboratory testing company, part of a global giant with an operation based in Whyalla that undertakes the quality control testing for the iron ore for SIMEC and onsite testing for GFG, hasn't been paid since March—that is six months. As a result, the company, which I have chosen not to name, has stopped all testing of SIMEC'S iron ore and GFG's onsite operations.

I am told that without these test results Liberty can't sell any of its steel as it is unable to qualify the purity of the steel. These test results are also vital for iron ore export, as they qualify the purity and grade being exported. The latest woe is on top of Golding contractors being owed more than $70 million and Veolia, the giant waste company, being owed around $11 million. Other contractors and suppliers are collectively owed millions more.

An FOI application my office submitted through FOI expert and 'Transparency Warrior' Rex Patrick, seeking all correspondence from the state government's Steel Task Force that relates to current and future steelmaking in Whyalla, was alarming. No documents exist, no minutes, no notes, nothing. The government cannot tell me what this task force has done.

While these companies are waiting to be paid back millions of dollars by steelworks owner Sanjeev Gupta, according to latest media reports he has been busy purchasing another multimillion dollar property on Sydney Harbour to go with another he owns, around the corner, at Potts Point. We may even bump into him if he is in residence in his corporate box at the Adelaide Oval on Friday when Port Power battle the Hawks.

As this chamber is aware, I have asked a number of questions in this place over the past six years about the status of the steelworks. They are taken on notice and referred to the minister for answering, and those answers arrive weeks later in their usual dismissive and scant manner. My questions to the minister are:

1. When is the government going to be up-front with all South Australians and reveal the true extent of the financial woes plaguing the steelworks?

2. Is the government aware of the latest revelation that contractors haven't been paid for six months?

3. Why doesn't the Steel Task Force have any correspondence that relates to current and future steelmaking in Whyalla?

4. Is the government in crisis talks with steelworks owner Sanjeev Gupta and/or others to ensure the steelworks doesn't collapse?

5. What is the latest update on the arc furnace at the steelworks?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:16): I will refer the honourable member's questions to the relevant minister in the other place and bring back a response.