"The federal and state intervention to take control of the Whyalla steelworks is a welcome, but still unfortunate, move to secure production at a key Australian industrial facility," said Innes Willox, Chief Executive of the Australian Industry Group.
"While industry never likes the pseudo-nationalisation of an individual business, to have lost essential steel-making capacity in Australia because of a potential supply chain collapse would have been nothing short of a national economic security disaster.
"We need to retain and build our steel and iron-making capabilities in Australia to ensure our economic resilience through what are increasingly uncertain economic times. We cannot allow ourselves to become overwhelmingly reliant on steel imports to meet all our industrial needs.
"It is clear that the governments lost patience over recent months with the proposed arrangements to repay creditors. There are small businesses in Whyalla and across the country which are owed hundreds of thousands of dollars each and they must be at the front of the governments' creditor queue.
"Industry hopes this period of administration and effective government control will be short-lived and that either a new buyer or long-term management arrangements can be negotiated and found. In the meantime, government investment in new capabilities in Whyalla is welcome.
"Retaining the existing workforce and its skills base is essential as is properly utilising the Whyalla facilities, including its port. The reality is that Whyalla is essential to South Australia's economic wellbeing.
"Whyalla's latest brush with industrial death is a stark reminder to governments and regulators that they must stop tripping over themselves in a blind rush to make it increasingly difficult for Australian businesses to invest, grow and compete. Industry hopes they end their seeming determination to drown Australian businesses in regulation and needless compliance.
"It is also hoped that this will lead to reconsideration of approaches to broader investment settings and procurement guidelines to assist Australian industry to compete, even in its home market," Mr Willox said.
