Federal and SA governments stump up billions for Whyalla and its steel works

ABC NEWS (Australia)

It has been an unprecedented 24 hours for Australia’s steel industry. The federal and South Australian governments will fund a 2.4 billion dollar rescue package for the Whyalla Steelworks, labelling it an investment in the nation. The jointly funded package will focus on paying off creditors, delivering plant upgrades and supporting a new owner, when one is found.

Transcript

00:00A sense of relief for these workers in Wyala.

00:06It's a great day, seriously. I've been here 25 years and this is a good day.

00:11The frustration and the uncertainty is what the killer is.

00:14The announcement of a $2.4 billion federal and state support package greeted with applause

00:21as the Prime Minister offered a helping hand to South Australia.

00:25This is the heart of this area in Wyala but the arteries spread out right around the country.

00:34The Steelworks, which employs 1,100 people directly, was taken over by billionaire businessman

00:40Sanjeev Gupta's GFG Alliance in 2017 after it had gone into administration.

00:47But eight years later, with hundreds of millions of dollars owed to creditors, the business

00:52is once again back in administration, with $50 million of taxpayers' money set aside

00:59to pay its debts.

01:00We're not supporting Mr Gupta. We're not bailing out Mr Gupta. His debts are his debts to be

01:05accounted for. No one's bailing him out. Far from it.

01:09The opposition leader Peter Dutton's supporting Labor's rescue package.

01:13We want to make sure that jobs are protected and that steelmaking continues because it's

01:18an essential industry for our country.

01:20But the Prime Minister wouldn't be drawn on whether the funding relies on him holding

01:24government.

01:25Well, we're going to win the next election.

01:27Blue Scope Steel, Australia's largest steel manufacturer, which is in talks with the administrators

01:32called Amentha, in the mix to take over the crippled business.

01:37And I am absolutely certain that there will be people coming forward wanting to take up

01:43this opportunity.

01:44An opportunity to save the Steelworks again.

Category

Transcript

Be the first to comment

Recommended