20 February 2025
The Hon. R.A. SIMMS (11:30): I rise to speak in support of the motion. In so doing I want to acknowledge the leadership of the Hon. Frank Pangallo. I think in many ways the honourable member has been the canary in the mine shaft on Whyalla, raising the issues over many years. Indeed, certainly during the time that I have been in this place he has been a consistent voice on the issue, so I recognise his work on this.
I also want to reflect a little on what occurred yesterday in that I think what was really significant about the events that unfolded in the parliament is that you saw all sides of politics working together to confront what is a significant issue facing our state. Everybody put party politics aside, and we worked together for the common good. It does not always happen—it is not always possible for us to move outside our political party lenses—but yesterday it did happen.
I think that is a good thing for politics in our state. I think it speaks to the integrity of our system, and I think it is actually what the people of South Australia want from us when we are confronting challenging situations like the one that has been faced in Whyalla. So I want to acknowledge the role that all members of parliament have played in that but of course also the leadership of the government in taking this decisive action, which, as the Hon. Frank Pangallo reflected, I think is welcomed by the people of Whyalla.
I think it is appropriate when we are dealing with industry that is such a significant job creator that there is government intervention. I remember what happened back in 2013 and 2014 with the car industry in this state when we did not see any federal government support for the car industry. As a result we saw the end of those jobs, and that has been a disaster for South Australia and our economy and our manufacturing capability in South Australia.
That has not happened in this instance. I welcome the fact that the federal government have come to the table today with a significant package for Whyalla. I understand—I was reading news reports this morning—that they are going to be investing $2 billion and that the state government is also going to be investing a significant amount of money as well. Notionally, I think from what I have read, the state government is investing a significant portion of the $600 million that was originally planned for the green hydrogen project.
The Greens welcome that public investment in Whyalla. Our view is, though, that public investment should result in public equity in any business that is going to be running the steelworks so that we do not find ourselves in this situation in the future where we are trying to dislodge a private business that is not effectively running the steelworks. What we would like to see in the future is a long-term pathway for Whyalla. Public investment should result in public equity.
In speaking to this motion I note that the people of Whyalla have endured repeated threats of job losses and economic hardship over the past decades. I first went to Whyalla in 2015 as part of the campaign the Greens were running at the time against the TPP—the Trans-Pacific Partnership—which a lot of people in Whyalla were concerned about because of the impact it would have had on procurement policies, particularly sovereign steel. There have been so many challenges that the people of that community have had to deal with over several decades.
Indeed, almost nine years ago, the then owners of the steelworks, Arrium, entered administration with debts of $2 billion and, once again, plunged the town into turmoil until the steelworks were purchased by Mr Sanjeev Gupta's GFG Alliance. We now know how that ended up. Given his financial failures and the fact that he is subject to regulatory investigation around the world, it is clear that Mr Gupta was never going to be giving the long-term solution that was needed for the steelworks. State and federal governments must now, of course, continue to work together on a solution for Whyalla.
Last week, the Greens wrote to the Premier, the Hon. Peter Malinauskas, and the federal Minister for Industry and Science, the Hon. Ed Husic, urging them to work together to protect steel production in Whyalla, including protecting jobs and the community from any negative economic consequences. We have, therefore, been pleased to see the actions that have been taken in recent days, and we welcome the support that is flowing from both the federal government and the state government.
It is critical that we preserve Australia's sovereign capability in steel production into the future. We know, as we face significant supply chain delays because of what is unfolding overseas, that we cannot rely on being able to import steel. We need to be able to make it here, and South Australia has a vital role to play in that space. We know that Australian companies are capable of producing very high-quality steel, a critical resource for 21st century jobs in the renewables and clean manufacturing sectors.
Whyalla's steelworks are able to produce over a million tonnes of raw steel each year, which is necessary for building wind turbines, grid infrastructure and energy storage facilities required to support green energy transition. In addition, the Whyalla Steelworks are the nation's only Australian-based manufacturer of the rail infrastructure that we need to expand the network for both freight and passengers.
I think it is very clear from what we have seen in the parliament over the last 24 hours that all members of parliament, all political parties representing all parts of the state, care deeply about the people of Whyalla. We recognise the extraordinary stress that people in that community have been under, and I think we all hope, collectively, that the events of the last 24 hours will provide them with some reprieve, and it is our hope that this will set that region on a pathway for long-term sustainability and viability.
Before concluding, I do just want to touch on the reports this morning around the government deferring the $600 million green hydrogen plan so that they can bolster the investment in Whyalla. I actually think that is appropriate in the circumstances. It is appropriate to defer that project in light of what is going on, given the success of the green hydrogen plan is predicated on the steelworks. You cannot have a green hydrogen plan if you do not have a viable steelworks, so I recognise the government has had to take that course of action; however, I do urge them to ensure that public funding in Whyalla and new business also ensures that we are delivering some environmental outcomes as well in green iron, green steel and that technology. That is vitally important as well. With that, I commend the motion.