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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2024-09-24 Daily Xml
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GFG Alliance

Mr PATTERSON (Morphett) (14:56): My question is to the Treasurer. When was the Treasurer first notified that GFC Alliance was in arrears on its royalties?

The Hon. S.C. MULLIGHAN (Lee—Treasurer, Minister for Defence and Space Industries) (14:56): I can come back to the shadow minister with an exact date, but it was several weeks ago. As I indicated in my earlier answer, since that time that the Department for Energy and Mining first became aware that they were not meeting their monthly royalty payment requirements, we have been not only closely engaging with GFG about that obligation but, as the Premier said in his earlier answer, gaining a detailed understanding of the situation that other suppliers find themselves in.

That is why we have had the local member, quite rightly, raise concerns about businesses in Whyalla—suppliers to GFG—that face similar conditions of being in receipt of late payments or payments that are falling due and not being made by the due date. We are working as far as we can as a state government to try to make sure we hold GFG to its obligations to the people of South Australia but don't put them in a position where they are unable to make their obligations to other suppliers or that threaten the future operations of the steelworks.

It is a difficult balance, but one that the government is committed to achieving because we understand what the future should hold for Whyalla and for the steelworks: a productive, thriving, cost-efficient, largely decarbonised operation into the future that will be one of the first places we would like to see making and exporting green steel products around the world, not only building on our reputation of being a global leader in making the transition to renewable energy generation and consumption but using that renewable energy to decarbonise heavy industry. That is guiding how we are approaching this difficult, challenging issue.

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