: Well, it's great to be here in Whyalla with Premier Malinauskas, his Minister Tom Koutsantonis and my Minister Ed Husic for what is a very significant day in the life of this heart and soul here in Whyalla, which is, of course, the steelworks.
My Government has committed to improving the lives of working Australians. That's why we've worked so hard to get inflation down, wages up, interest rates now falling whilst we've created 1.1 million jobs, more jobs than any government in Australian history since Federation. And indeed our unemployment rate is lower on average than any government in the last 50 years. And we've achieved that whilst dealing with that long tail of COVID and dealing with the pressures that have come on from global inflation. And we are a Government that back a Future Made in Australia. It was the centrepiece of our last Budget. We need to learn the lessons of COVID which is that we can't just be at the end of supply chains. We can't just dig things up, export them, wait for value to be added, wait for jobs to be created and then import the manufactured goods here. And there's no industry that is more important for our nation than steel making. And here in Whyalla, 75 per cent of Australia's structural steel is made right here. And today we met people, including someone who's worked here for 56 years, that says something about how important this is to the lifeblood. This is the heart of this area in Whyalla, but the arteries spread out right around the country. Jobs in construction, jobs in railways, jobs in the new airport in Sydney, jobs in major infrastructure projects, in construction, in new buildings, in the defence industry. That is also a very important part of South Australia's present, and more importantly, South Australia's tremendous future going forward.
The announcement that we've made today and the leadership of Premier Malinauskas in intervening to ensure that the steelworks here are placed into administration so as to ensure there is certainty going forward to secure jobs not just for the present, but importantly for this and future generations. Now, this package that we're putting together here, we've been working very hard on between the South Australian Government and the Australian Government. Two Labor Governments working together to support jobs, good quality, good paying jobs that are so vital for our nation. This $2.4 billion plan consisting of $500 million, firstly, to deal with administration, to keep the steelworks going, keep people being paid. But importantly as well, investment in the future. And we have, of course, a very bright future here, indeed.
On top of this, of course, we will be allocating funds from our $1 billion Green Iron Investment Fund that we have created. This is important not just for South Australia, but there'll be other opportunities. There'll be up to $500 million from that fund for here in Whyalla, but in excess of $500 million will be available for other projects as well. Because we know that there's a great deal of interest in the transition that will occur, that will set us up for the very long term future. But our priority, which is immediate, is in securing the jobs right here in Whyalla. I remember the previous Government, the same Government that told the car industry to bugger off from South Australia, also said that Whyalla would be wiped off the map if we actually took action. Of course, none of that occurred.
We want Whyalla not just to survive, but to thrive and grow. And that is very possible with the vision that I share with the next bloke who'll speak, the Premier of South Australia. And I pay tribute to the vision that Peter Malinauskas has for the Upper Spencer Gulf, for jobs here, for port infrastructure, for how it all fits together. Because it fits together here. The best quality magnetite in the world right here, close to these steelworks here in Whyalla. And can I say that I've been in a lot of work sites over a lot of years. What we had today was a feeling of relief. A feeling of relief that the uncertainty is over, that the jobs here are secure and that their future is secure as well. We got shown around by someone who's a fourth generation steel maker. We want to make sure that there's a fifth and a sixth and a seventh generation steel maker here in Whyalla. And that's what today's about.
PETER MALINAUSKAS, PREMIER OF SOUTH AUSTRALIA: Thanks so much, Prime Minister. Well, let me just start by expressing my gratitude to the Prime Minister and Minister Husic along with Minister Koutsantonis. But you know, yesterday was a dramatic day in South Australia and the State Parliament. But we couldn't do what we did yesterday if I didn't know today was going to come. And from the very first moment that I picked up the phone to the Prime Minister last year and I said, "there's trouble in Whyalla." Before I could finish my ask, he said, "well, how can we help?" Because this is a Prime Minister that truly appreciates - it's not made up. It's in his heart, it's in the values that he expresses through his own leadership that is committed to making sure that this is a country that is making things, not just exporting raw product, but actually making things here for the common good of our economy and the people that live within it.
The announcement from the Prime Minister today where between the State Government and the Federal Government are $2 billion package to ensure steelmaking continues at the size and the scale we see here in Whyalla, but with a big future ahead of it, it was absolutely critical to allow us to make the intervention to get the steelworks out of the hand of GFG. So, no amount of gratitude I express really do justice to how important this was to our State and the people that work here. The Prime Minister has covered off on some top line details. The only thing I wanted to quickly talk to, which Mr Chapman might have mentioned already, is this morning I had the chance to meet firsthand with creditors who haven't been getting paid. Workers at the steelworks, they've been giving this place life, but they haven't been doing it alone. They've been doing it with other contractors who are as committed to the steelworks as the intergenerational stewardship that the steelworkers themselves have provided. And they've been doing work and not getting paid for it. Now, it's just not the sort of practice that we see here and we accept in this country. So, today I've been able to announce a comprehensive funding package that will see the State Government pay all of the debts that are owed by GFG to creditors on the ground here in South Australia, up to $5 million in exchange for them handing over their rights to a dividend through the administration process. So, that is government stepping up to the plate to secure the contractors in the workforce that make steel in this country, to keep it running and operating, to ensure stability to the business as we go into this phase of administration with a view of a long term future. And the one person who's got this more than anyone when I've been speaking to them is the Prime Minister. That you can't just have a process of stabilising the business, you have to have a plan for the future. And Minister Husic and the Prime Minister have been keen to make sure that we orientate this package, to make sure that this is a movie that we have to watch again, like people have seen this before in the transition from Arrium to GFG. We don't want a re-run. We want to set it up for the future. We want to do it properly this time.
The Prime Minister and Minister Husic get it, along with my Government and that's why we've put together a package that is about a long term transition to see sustainable steel making in this country that can stand on its own two feet and supply the rest of the country, and indeed the rest of the world, with a product that it so desperately needs. I don't mind sharing - I hope the Prime Minister doesn't mind either - that going back a couple of years when the Prime Minister was in South Australia, I said, look, there's a big picture opportunity around the Upper Spencer Gulf and I want to be able to talk to you and step you through it properly. And he said, well, come over to Canberra and we'll sit down over a meal and we'll go through it in all of its detail. And I was very grateful to be a guest of the Prime Minister's at The Lodge. And we sat down there, we had the map and we had all the resources that are unique to this part of the country. There's nowhere else in the world that has a high quality magnetite resource, an integrated steelworks, a port surrounded by renewable energy. It's a gem and it's this nation's. But someone has to bring those things together to bring it to life. And today we announce a package that sees to exactly that. So, I want to thank the Federal Government for their, not just, you know, their support today. This is not about the survival of the steelworks. This is about a long term future for steel making this country. And it's really important. I'm very grateful for it.
JOURNALIST: What's the cost of the payout to the unsecured creditors, locally, up to $5 million?
PREMIER MALINAUSKAS: Okay, so I haven't stepped you through all the details. I mentioned that package. The other element of the package is they'll be able to get access - If you've got debt from GFG over $5,000, up to a million bucks, then we're going to give you 50 per cent of that, more or less, up front. And those two - that package combined with the one I explained earlier is a total of $50 million.
JOURNALIST: Do you think South Australians would be disappointed that they're bailing out Sanjeev Gupta's failing business?
PREMIER MALINAUSKAS: They're not. They're not. Now I know - how do I say this generously? I can appreciate how elements of the media will be attracted to that chain of reasoning, but it is patently wrong and it doesn't represent the facts. There is no bailout here of GFG. Their debts aren't going anywhere and they're for Mr. Gupta to account for. And he will have to deal with that process through administration. What we're going to do is support the businesses on the ground who have done nothing wrong and don't owe anything to anyone. See, the good thing about these creditors is while they haven't been getting paid for Mr Gupta, they have continued to pay their workers, they have continued to pay their vendors and that's what's kept this town running. But their sacrifice deserves to be recognised. And that's what government is supporting. We're not supporting Mr Gupta. We're not bailing out Mr Gupta. His debts are his debts to be accounted for. No one's bailing him out, far from it. What we're doing is investing in the operations here in the future. And the creditors are - the small businesses here in Whyalla and around the state - are critical to that. So, to be clear, let me explain again what we're doing. If they are owed money by GFG, the State Government is going to step in and look after those creditors, what they are owed, and then those creditors will hand over to the State the dividend that they will receive for the administration process. So, what we're doing is relieving them of all the burden and the struggle associated with administration so they can get on with doing what they do best. And that's keeping this place running and making steel in this country. Does that make sense?
JOURNALIST: That $50 million, that's essentially the money that was initially promised to GFG to upgrade the plant.
PREMIER MALINAUSKAS: No, no, no. Don't conflate the two, because separate to that, in the $2.4 billion package, is the money that we're putting on the table in conjunction with the Commonwealth to transform the plant. They're the same number, but it's not the same money.
JOURNALIST: What will happen with your hydrogen plant now? Will taxpayers still be forking out $600,000 a year for the CEO to fund that Department?
PREMIER MALINAUSKAS: Yes, the Office of Hydrogen Power will be maintained, because we know, and the science tells you, that in order to decarbonise iron and steel making, you need hydrogen. And there is a future for that. But the large functions of that Office will be curtailed and wound back now that we defer that plan in order to get the basics right here in terms of the steel mill, because - and the steel plant and the mine - because, you know, there's no point in producing hydrogen if there's not a customer for it. And the first step is to actually realise what was supposed to happen from GFG, and that is getting the magnetite out of the ground, investing in the steelworks, transitioning to electric arc furnace - DRI. And that needs to happen concurrently with a potential new owner of the steelworks. And that's what this package seeks to provide for.
JOURNALIST: Is the hydrogen future still in Whyalla?
PREMIER MALINAUSKAS: Yes, we believe so. Yes.
JOURNALIST: And will the Upper Spencer Gulf water project be affected by -
PREMIER MALINAUSKAS: No, it will not. No. Again, another nation building opportunity. The Northern Water Plan, which is all about getting more copper out of the ground, which we are working so closely as a State Government with BHP on - that is unaffected by this. In fact, to be honest, we have - I don't want to prejudice the process - but we are looking very closely at two potential sites for the desal plant. Cape Hardy and Mullaquana. And things are - it's fair to say the Minister will correct me if -Minister Koutsantonis will stop me if I've got this wrong. But things are looking promising for Mullaquana being the site of that desal plant, which will be great for this community as well.
JOURNALIST: When you were here a year ago, you said that the main customer of the hydrogen would be the Government's own power plant. Now you're saying, we should be doing it without a customer. Which is it?
PREMIER MALINAUSKAS: No, what I'm saying is that the reason why we were building the hydrogen facility in Whyalla was because there's a steelworks in Whyalla that was set to be an off taker of it. That was what Mr. Gupta said he wanted. And you know, we were willing to do what we can to make sure that vision comes to fruition. But the future of hydrogen is there and it's clear and people appreciate the necessity of it. I guess what we've got to make sure is that we've got an iron and steel making business that is there in the first instance. And we've seen all the uncertainty play out. Well, that starts to come to an end today as we make the significant moves we did yesterday. And we announced this comprehensive package today.
JOURNALIST: You acquired a new gas turbine with ATCO in November last year. What's the status of that now?
PREMIER MALINAUSKAS: We'll make further announcements in the not too distant future.
JOURNALIST: How involved will the Government be in finding a new owner for the site?
PREMIER MALINAUSKAS: Well, that's the responsibility of the administrator. You know, the way the administration works in this country, of course, is governed by the Corporations Law. And that puts strict obligations on the administrator to protect the creditor's interests, but also have a commitment to the ongoing concern, in this case the steelworks. But they're not anyone's puppet. Notwithstanding the fact that the South Australian Government, in conjunction with the Federal Government, are funding the administration. We will seek to make sure that we head in the right direction. And that's already been evidenced through this package. But ultimately it is the administrator's job to go out there and find that new owner. But we would love to support where we can. And this package certainly speaks to that.
JOURNALIST: Are you certainly ruling out nationalisation - if you don't find a long term buyer - are you firmly ruling out nationalisation?
PREMIER MALINAUSKAS: Well, we know that there is an asset here of extraordinary value. This magnetite resource is unmatched and the proximity to the steelworks and the port make it, like I said, particularly valuable. So, we're very confident that with the right package of assistance with government, we can get not just any steelmaker, but the right steelmaker to be committed to here in the future.
JOURNALIST: Prime Minister, would the Federal Government rule out nationalisation of the steelworks?
PRIME MINISTER: Well, the Premier just gave an answer and I agree with the Premier. It's very clear that this is an extraordinary opportunity. You have steelworks with such a history. You have the best quality magnetite or as good as anywhere in the world. You have an extraordinary port facility and you have a future that the world is looking at. You know, I've been coming to South Australia for some time. This is my 21st visit as Prime Minister, but I've been here probably well over 100 times over the years. I remember coming to South Australia, looking at the solar panels that were being manufactured here. Now, there's not a solar panel in the world that doesn't have IP - intellectual property - that was developed at the Australian National University or at UNSW. But we make bugger all here. We missed out on that opportunity. What governments need to do is to look not a year ahead, five years ahead, but look at where the opportunities are for Australia. How we have a future made here in Australia and it's not doing nothing on energy. And then sometime down the line, finding $600 billion of taxpayers' funds to have seven nuclear power plants that no one, including the LNP Government in Queensland, wants. It is making sure that we set Australia up. And this decision today is a vote of confidence in Whyalla, in the region and in the future. And I am absolutely certain that there will be people coming forward wanting to take up this opportunity.
JOURNALIST: What's different for a buyer then? What do they need to do? Jump through hoops to make sure that they can access that $500 million which is promised for upgrades to the plant?
PRIME MINISTER: Well, we will work those issues through. The first stage has been administration and that's jointly funded by the Commonwealth and the State. As part of that, it's looking after local small businesses and people who are owed debts. We're going to look after this community and we'll work through those processes. You know, it won't be sorted out in the next day or days, but it'll be sorted out.
JOURNALIST: What stops another Sanjeev Gupta coming along, investing in the steelworks, making big promises and not being able to fulfil them?
PRIME MINISTER: Making sure that we get this process right, as the Premier has said. As the Premier said, it's about setting up this still works in this community for the future.
JOURNALIST: What happens if you lose the election, Prime Minister? Can you guarantee there will be no job losses here in Whyalla?
PRIME MINISTER: Well, we're about supporting jobs here in Whyalla. And a successful steelworks here will see jobs created, not lost.
JOURNALIST: What happens to this money and to Whyalla if Labor doesn't win the next election?
PRIME MINISTER: Well, we're going to win the next election and we're determined to do that. And my Government actually is a government that has policies that supports blue collar workers, that supports jobs, that supports Australia's national interest. Our opponents have three policies. They want you to pay for people's lunch of bosses of $20,000 a year. They want you, through your taxes, to pay $600 billion for some nuclear power plants, including one here in South Australia, where something else is being used for the land. And they want you to put up with the cuts that will come for health and education and everything else. They won't tell you what they are, but they'll tell you that there are cuts there. And they called all of the $350 billion they speak about as being wasteful spending.
JOURNALIST: You don't have a candidate for Grey. How committed are you to Whyalla if there's no candidate?
PRIME MINISTER: We'll have a candidate in Grey.
JOURNALIST: There's a lot of pressure on the table, a lot of money on the table. What do you mean by getting this process right when finding a new person to take over the steelworks?
PRIME MINISTER: It means we'll get it right. The administrators will do their job.
JOURNALIST: Is there still a market for Australian steel given the global market at this current time and also the US tariffs -
PRIME MINISTER: You bet there's a market for Australian steel. There's a market right here. It is really important in our national interest, and as I said in my opening comments, the idea that Australia would just be vulnerable for the shocks that can occur. A pandemic, international conflict, trade issues - we live in an uncertain world. Australia needs to be more resilient. That's one of the lessons of the pandemic. It's one my Government has learnt and it's one that is to the core of what our values are. A Labor Government will always support jobs, will always support blue collar work and will always stand up for Australia's national interest. That's what we're doing.
JOURNALIST: When did you find out about the Premier's plan to change legislation in order to pull the trigger and force this company to administration?
PRIME MINISTER: I don't talk about private conversations between myself and the Premier. Suffice to know I support the action.
JOURNALIST: Was it time to give you good news ahead of the Federal election?
PRIME MINISTER: Seriously? This is about jobs here, that's what it's about. This is about looking after working people here. And fortunately, the workers here aren't as cynical as some in the media.
JOURNALIST: What about Tahmoor Mines? There's a lot of people stood down there at the moment. What's the go there now with GFG?
PRIME MINISTER: Well that is, of course, a matter for GFG. But we stand with working people wherever they are. That's our view. This was important. This uncertainty had been going on for some time. It was time that it be settled. It was time to be settled in a clear and decisive way. And our governments have worked together to ensure that that has occurred. And Minister Husic has done a lot of work, we've been speaking with the Premier for some time. He spoke about his visit to the Lodge, that was a while ago now, where we went through the opportunities that are here in South Australia. One of the things about this great state is that I think the future you have here with what you're doing here, and also in particular with defence industries, but other industries as well, is enormous. The smart way in which, for example, schools have been transformed into technical colleges, so that you're giving people those skills going through is, in my view, best practice. And I've been to TAFE, I've been to a range of these facilities, the work that's been done in universities here to make sure that people are job ready is terrific.
JOURNALIST: Will Whyalla be able to survive Trump's steel tariffs and do you have an update on the exemption?
PRIME MINISTER: Whyalla has a great future here and what we're doing today is securing that future. Thank you very much.
JOURNALIST: Can we ask you about President Trump's comments about President Zelenskyy being a dictator? Is that the sort of language that needs to be used in that space at this time?
PRIME MINISTER: Well, I speak for Australia's interest and Australia stands with Ukraine in their struggle, which is a struggle not just for their own national sovereignty, but it's a struggle to stand up for the international rule of law.
JOURNALIST: PM, just quickly, you get asked this a lot. But Gather Round and the election, they might coincide -
PRIME MINISTER: It's so boring. It's so boring. The question -
JOURNALIST: (Inaudible) the footy?
PRIME MINISTER: No, Gather Round's fantastic. Just one of the initiatives. What's boring is questions about election timing.
JOURNALIST: Why is that?
PRIME MINISTER: And because you ask it, I've been asked it for a year. I'll give you this tip. Peter Dutton a year ago -
JOURNALIST: Voters deserve to know.
PRIME MINISTER: Peter Dutton a year ago called for an election to stop our tax cuts. Our tax cuts for you getting more money in your pocket as a result of the changes that we made in legislation. He not only said he was opposed to it before they saw what it was, then they said they'd reverse it, then they said we should have an election a year ago. I support four year fixed terms. Unfortunately, the Liberal Party as is their want, has opposed two referendums that would have got that done. That would provide the certainty. You know what I'm focused on? Not election days. I'm focused on working every single day for working Australians. That's what I'm focused on.
JOURNALIST: Surely it won't be in the middle of the Gather Round though, right?
PRIME MINISTER: That's what I'm focused on. Making a difference. And the election will be, unless there's a half Senate election, which would mean the election could be in September of this year. So in the middle of the finals series. Unless that occurs, the election will be May 17th or beforehand.
JOURNALIST: Just one more on Chinese navy ships. Are you worried about them off Sydney?
PRIME MINISTER: Well, the Chinese naval ships are complying with international law, but as we do, we are monitoring the situation and observing what is going on as you would expect.
