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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-09-20 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) (14:11): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: I rise to update the house on the sale of Arrium and the future of the Whyalla operations. As we know, Arrium was placed into administration and the administrators, KordaMentha, have been busy stabilising the business and preparing it for sale. The administrators have confirmed that they have made significant savings in the Arrium operations, which has led to a significant improvement in the financial position of the Whyalla operations.

Over the past few weeks, a number of meetings have taken place between the Steel Task Force, KordaMentha, Morgan Stanley, the commonwealth and, of course, representatives of the workers, the trade unions. It is pleasing to note that Morgan Stanley, which has been appointed to run the sales process, has been directed by the administrators to sell Arrium as a whole operation as the first option, which is also the government's very strong preference.

The meetings progressed discussions on South Australian government support for the sale in terms of our $50 million in financial assistance and ways of providing some certainty for potential buyers towards the past environmental liabilities of the Arrium Whyalla steelworks site. The state government is providing a letter to the administrators outlining our support which will be communicated to bidders in the indicative bid stage of the sale process by inclusion in an information memorandum.

I have also been in contact with the federal Minister for Industry, Innovation and Science, the Hon. Greg Hunt, who has written a letter addressed to the prospective purchasers advising of the actions the commonwealth government has already taken in support of Arrium and advised that it would work with the new owners of Arrium to promote the long-term viability of the company's steelmaking and mining operations.

The government is aware of the significant interest from numerous potential buyers of the Arrium business, which are now entering into more detailed dialogue with Morgan Stanley. Our strong preference remains that the Whyalla operations are sold as a whole, together with all of Arrium's Australian operations, to a single new owner.

I would also like to take this opportunity to update the house on the $10 million interest-free loan scheme to support small businesses experiencing cash flow challenges as a result of Arrium entering administration. To date, 22 companies have sought loans and a total of $4.89 million has been approved in support of Whyalla's businesses. I look forward to updating the house further as this issue progresses.

Mr van Holst Pellekaan interjecting:

The Hon. A. KOUTSANTONIS: Ask a question.

The SPEAKER: The Treasurer and the member for Stuart are both called to order for quarrelling across the chamber.

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