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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-02-23 Daily Xml
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Ministerial Statement

Steel Industry

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:03): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: The steel industry around Australia is responding to increasingly slender margins and increased price competition from China and other steelmaking countries. South Australia and Arrium are not immune to these global market pressures. Arrium's challenges are compounded by its mining operations that have also felt the brunt of the fall in iron ore prices.

South Australia is the birthplace of the nation's steel industry. As a nation that has a vast abundance of iron ore, as part of our national security, we have to ensure we have a sustainable steelmaking capacity in this country. We simply cannot be one of the largest iron ore producers in the world and not manufacture our own steel. South Australia and, indeed, the nation, have an interest in ensuring a long-term future for the creation of structural steel.

I believe ensuring that we have a secure capacity to create structural steel is a central part of our nation's capacity to assert itself as having an independent sovereign status. The Anti-Dumping Commission recently confirmed fears that the local steel industry has been damaged by cheap imports from China being dumped into Australia. Federal industry minister Christopher Pyne has asked the commission to undertake an inquiry into steel imports in response to industry concerns about dumping and its impact on their business. I look forward to the commission taking appropriate measures to remedy this unfair competition.

The South Australian government continues to stand by Arrium and the Whyalla community to ensure that steelmaking remains a major contributor to jobs and economic prosperity in South Australia. As a demonstration of that support, the South Australian government has launched a Support Our Steel campaign to urge all states, territories and the commonwealth to mandate the use of Australian standard steel and accredited fabricators in all taxpayer-funded projects. To further assist Arrium, the government established steel task force led by the same team that worked with Nyrstar to secure the future of Port Pirie.

The government has indicated its willingness to provide further support to Arrium, and the task force is in ongoing negotiations with them around the nature of that support. Arrium yesterday announced a recapitalisation through GSO Capital Partners as part of its strategy of reducing its debt exposure in response to a low iron ore price.

The state government has already agreed to extend for a further 10 years the environmental authorisation provided to Arrium to operate its Whyalla steelworks waived royalties on magnetite used to feed Arrium's Whyalla steelworks, and signed a memorandum of understanding with Arrium agreeing to work together to create a multi-user port at Whyalla and generate new investment opportunities in the Upper Spencer Gulf.

This government stands shoulder to shoulder with the people at Whyalla. We will be working with Arrium to narrow down the appropriate options for sustaining the life of the steelworks and encourage investment in Whyalla and more broadly in the Upper Spencer Gulf.

Members interjecting:

The SPEAKER: Leave was granted to the Premier to make that ministerial statement. If there is something in it with which members disagree, they can ask questions about it either without notice or on notice. However, it was met with a torrent of interjections, so I call to order the members for Hartley, Hammond, Chaffey, and the deputy leader. I warn the deputy leader and the members for Hammond and Hartley and I warn for the second and final time the deputy leader and the member for Hammond.

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