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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-05-17 Daily Xml
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Arrium

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:20): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: Members will recall that last November the state government established the Steel Taskforce with the aim of securing South Australia's steelmaking future. Chaired by Mr Bruce Carter, the task force's work is focused on securing the long-term viability of Arrium's Whyalla steelworks and its mining operations. The Steel Taskforce continues to work closely with all relevant stakeholders to secure Arrium's operations in Whyalla, and it is currently aware of at least three enterprises interested in potentially buying the business.

The government also continues to pursue opportunities with the commonwealth government for coinvestment and last week the Prime Minister, Mr Malcolm Turnbull, wrote to the Premier committing both commonwealth and state officials to work together on a review of potential investment opportunities. Time is critical to ensure Arrium and Whyalla can move out of this administration period into a brighter, more successful future.

Now that we are in the midst of a federal election campaign, we will be seeking commitments from both major political parties to partner with us in an innovative investment in the business to secure Arrium's commercial position and ensure a positive transition out of administration. As we did with Nyrstar, the governments worked together to design an innovative package that locked in $563 million of investment and secured the future for Port Pirie. I envisage we can do something similar to secure Whyalla's long-term future.

We have been working hard to support the people and businesses of South Australia's second largest regional centre, and we have responded to the hardship and uncertainty caused by Arrium's administration by appointing former Olympic Dam task force chief, Paul Case, as regional coordinator in Whyalla to oversee a one-stop shop for community access to financial and other services. Supported by his team, Mr Case will primarily focus on engaging with the community, including businesses, individuals, local government, and associations to understand their needs and ensure that appropriate services are being delivered by government agencies.

Earlier this month, the government also announced a $10 million Whyalla small business loan/grant program to support the trade creditors directly affected by Arrium being placed in administration. Interest free loans or grants of up to $750,000 to eligible businesses are now available to assist these creditors to overcome severe cash flow issues. The Office of the Small Business Commissioner has also arranged for specialist legal advice to be provided to Arrium's Whyalla-based creditors.

I also welcome OZ Minerals' recent announcement that Whyalla is its preferred site for a new copper concentrate treatment plant to support its Carrapateena project. The plant will require 100 jobs during construction and a further 100 during operation, which will help diversify and strengthen Whyalla's economy. I look forward to this project progressing through the relevant approval process.

This government is doing all it can to seek a positive path forward so that Arrium can emerge from its administration as soon as possible. I thank the member for Giles for his support and his advocacy on behalf of his community.

Ms Chapman: But we buy steel from China for the O-Bahn.

The SPEAKER: The deputy leader is warned.

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