Question Time

Whyalla Steelworks

The Hon. H.M. GIROLAMO (Deputy Leader of the Opposition) (14:20): I seek leave to give a brief explanation before asking questions of the Leader of the Government in the Legislative Council regarding new legislation.

Leave granted.

The Hon. H.M. GIROLAMO: Yesterday, the Parliament of South Australia pushed through legislation that forced OneSteel, which runs the Whyalla Steelworks, into administration. This was done in an urgent attempt to resolve the crisis at the embattled steelworks, which employs some 1,500 people direct and supports upwards of 3,000 people locally in Whyalla.

The opposition and crossbench in this place worked with the government to ensure the security of the steelworks and the regional city it supports. It was extremely fast, and not best practice when it comes to legislation, but we all appreciate that it was very important. My questions to the Leader of the Government in this place are:

1. Is the government preparing any further legislation to prioritise small creditors impacted by the GFG collapse and administration?

2. Are creditors with outstanding debts incurred before 19 February protected or will it only apply to additional creditors from that date onwards?

3. Will 100 per cent of creditors be reimbursed for all debts that are outstanding at this time?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (14:21): I thank the honourable member for her question. As the honourable member pointed out in her explanation, and as we talked about in this chamber today, there were extraordinary circumstances that brought about an extraordinarily fast piece of legislation that passed parliament yesterday, was assented to very quickly afterwards, and steps were then taken for the steelworks, owned by GFG, to be placed into administration.

In relation to questions about creditors in the future and any outstanding debts that are owed to creditors in the future, my understanding of the way administration works is that one of the purposes of administration is to be able to pay debts prospectively when they become due. It has been no secret and the Premier has been on the public record as being very keen for the steelworks in Whyalla to be a going concern and for those debts to be paid in the future as they fall due, and to look for a new owner to take over the operations of those steelworks.

There are laws that govern orders and payment for creditors. I think everyone's main concerns are particularly with small South Australian, often Whyalla-based, businesses that have not been paid for quite some months in some circumstances. I know that details are being worked out about what sort of supports can be put in place for those who are owed money. There were some announcements made earlier this morning while we were all either in the chamber or preparing for parliament, and there will be more made over the coming days, but certainly that is at the forefront of the thinking and concerns of both the state and federal governments.