Matters of Interest

Whyalla Steelworks

The Hon. J.E. HANSON (15:27): Unless you live under a rock, you would know by now that GFG is no longer running the Whyalla Steelworks and the associated mines. I am on record when it comes to manufacturing: we need to make it here and we need to make it well. Certainly today has a sense of deja vu for me—if it does not for anyone else here—as someone who has previously been involved with administrations in Whyalla. It certainly would have a sense of deja vu for everybody who lives and works in the town of Whyalla and surrounds.

The South Australian government has stepped in. The steelworks is now in the hands of an administrator. What does that mean? The point of that is to continue operations and to explore a possible sale to a new owner. That is a very significant step, and not one that we take lightly. This is really all about the long-term future of Whyalla. There is a huge economic opportunity for the Upper Spencer Gulf, and we have to make sure that that is realised.

During the administration it is very clear—and it is important that we make clear—that workers and contractors will continue to do their job and will continue to be paid, with the benefit of a government guarantee. KordaMentha is the administrator, a very experienced administrator, one that I have worked with in the past, with a solid track record of ably operating the Whyalla Steelworks.

Early and proactive steps will be taken by this government, the state government, and the administrator to stabilise operations and to explore a possible sale to a new owner in a way that, very importantly, keeps the assets together and keeps the steelworks operational.

Whyalla is fundamentally critical to Australian steel. It is one of only two Australian steelworks. It produces 75 per cent of Australia's structural steel, and it is the only domestic producer of long-steel products. Steel from Whyalla is how Australia is able to build things. What kind of things? Well, we can build and maintain infrastructure, like railways, high-rise towers, housing, wind farms, transmission, bridges, defence, hospitals—you name it, Australian steel can be in it.

Whyalla steel is present in big infrastructure projects, from the Optus Stadium in Perth to the Western Sydney Airport, the Rail Link to the Cross River Rail project in Brisbane. Without Whyalla steel Australia would rely on steel from overseas amid a deteriorating strategic environment and indeed a national housing crisis.

I have been on record before as quoting that the simple truth is that if you want to play a relevant role on the international stage and you cannot make complex things you will walk away empty handed, and if you cannot make complex things you cannot respond effectively to a crisis, be it a pandemic, a military incursion or global warming. This is not an ideological matter, it is a practical one. If the mining sector collapses or if there is a trade war and China stops taking our agricultural products, then what?

That was said 10 years ago, and boy howdy is that not relevant today? It is my belief when it comes to manufacturing that it is not like other sectors. If you look at pharmaceuticals, that is a sector. If you look at agriculture, that is a sector. You can look at mining and that is a sector. Manufacturing is a capability, and the more manufacturing you have the more capable you are. In a world that has so many crises going on right now that affect working people in this country, it has never been more important that we have the capability provided by manufacturing to be able to respond to those crises.

It has never been more important that steps, like we are seeing today, are taken to make sure we can continue to do exactly that. This will not be the last step taken in regard to what we are seeing in Whyalla. In fact, I know right now that the Premier will be winging his way to Whyalla to make further announcements about how we are going to support the people who live and work there. This is a huge step we have taken today. I really hope to see everyone get behind it and everyone support it. Let's make sure that we continue to make it here and make it well.