Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry, Innovation and Science. The minister has been closely involved with the ongoing negotiations to ensure the future of the Arrium steelmaking plant in Whyalla. I thank him for his commitment. I know he is aware of the pressure the city's citizens are under. Can he inform the House as to the current state of negotiations regarding the sale of Arrium's Whyalla assets and outline what the government has done to promote a successful sale? What more could we possibly do to ensure its survival?

Greg Hunt (Flinders, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

I want to thank the member for Grey. Shortly after the Prime Minister announced the new ministerial arrangements one of the first calls I received was from the member for Grey, who immediately raised the issue of Arrium and the security of the workers' jobs. In particular he wanted know that the government would deliver on the commitment of $49.2 million which was made during the election campaign for a loan through the Export Finance and Insurance Corporation for a beneficiation plan. In fact, within three days of the new ministry being sworn in we were able to deliver that loan. We were able to make sure that $49.2 million was delivered. I am advised that plant has already been ordered, which will produce $200 million of cash flow over the next five years to assist with the Arrium plant.

This is a very serious issue for the workers of Whyalla. I went with the member for Grey, at his request, to both Port Pirie and Whyalla. In Whyalla we met with workers, we met with unions, we met with the administrators, we met with the council and we met with the community. There was a common approach. What they wanted to see occur next was the rail that had been ordered as part of the upgrade announced by the Prime Minister in March to the Adelaide to Tarcoola rail line. I am delighted to inform the House that only last week the first shipment from this steel plant for the Adelaide to Tarcoola railway line was delivered. That is a tremendous step forward. That should deliver $80 million of cash flow for the plant and for the future of the Whyalla steel plant.

More than that though we have seen actions in the last week about a level playing field for Australian steel. The assistant minister made a decision to end the dumping of steel grinding balls in the Australian market and to take action. The Prime Minister at the G20 was engaged in global action to ensure a level playing field abroad in the steel market. But there is a lot more still to be done. We have been working exactly as we said we would: constructively with the administrators, with the workers, with the union—and I have to say that, whilst we may have differences with the union on some issues, we have worked in lock step with them—and with the South Australian government. Again, we may have differences with the South Australian government in some areas but we have worked hand in glove, and this is an example of real cooperation that will deliver real results, because at the end of the day it is Australian jobs, South Australian jobs and jobs in Whyalla and for the community of Whyalla that matter.

So ultimately I am optimistic. We have provided a letter of comfort that indicates the Export Finance and Insurance Corporation and the Clean Energy Finance Corporation are available for the future. At the end of the day I am optimistic and it is all about doing the right thing by the workers. (Time expired)