Category: Steel / Company News / States and Territories / Federal - State Issues / Government and Politics / Federal Government

Taxpayer support for Whyalla steelworks discussed with Arrium administrator

Friday, 15 Apr 2016 17:43:26

The prospect of a taxpayer-funded package to try to keep the Whyalla steelworks in South Australia operating has been discussed at talks between the State Government and the Arrium administrator.

Premier Jay Weatherill and Treasurer Tom Koutsantonis met the administrator on Friday to discuss how the steelworks might be supported as Arrium deals with heavy debt.

KordaMentha is now handling the voluntary administration after being appointed this week at the request of banks and a union.

Mark Mentha of KordaMentha had an hour-long meeting with the Premier and Treasurer and all emerged saying much had been achieved.

"It was a very productive meeting with the administrator of Arrium," Mr Koutsantonis told reporters.

Major customers have been promising they will keep buying Whyalla steel, the Treasurer said.

"What we're getting from the largest purchasers of Australian structural steel is a commitment to continue purchasing that steel," Mr Koutsantonis said.

Mr Mentha said there was the prospect of Government support for the troubled steelworks.

"They're looking at putting a package together that can assist the administrator in attracting capital, new capital to this Arrium business," he said.

"What I saw today was a Government that's really committed to to the long term future of the Whyalla community."

Ageing steelworks might get upgrade

The package might include taxpayer investment to improve the efficiency of the ageing steelworks and could see local port facilities available to paying customers.

Arrium has debt of about $4 billion and the Whyalla steelworks is running at a loss.

The administrator said short-term help had been given to 17 businesses which had problems because of what Arrium owed them.

Premier Weatherill is making plans to travel to Whyalla in just over a fortnight for talks with affected businesses.

The administrator also met federal Industry Minister Christopher Pyne.

Mr Pyne said earlier in the week he would not personally attend a coming steel summit in Belgium, so on Friday the independent SA senator Nick Xenophon gathered reporters at a travel agency in the Adelaide CBD to tell them he was arranging Mr Pyne's overseas air travel.

"If he's fair dinkum about standing up for our steel industry he needs to be at this high-level meeting in Brussels on Monday," Senator Xenophon said.

Mr Pyne is sending his assistant minister because he wants to be in Canberra to attend Federal Parliament.



 

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