PM says Whyalla’s $2.4 billion package will ensure ‘your kids will have a job’

Prime Minister Anthony Albanese has told Whyalla steelworkers a $2.4 billion support package for the city will ensure “your kids will have a job in the future”.

Mr Albanese travelled to the South Australian regional city after the steelworks was yesterday plunged into administration by the state government, following months of turmoil under the ownership of GFG.

“There’s no industry that is more important for our nation than steelmaking, and here in Whyalla 75 per cent of Australia’s structural steel is made right here,” he told reporters at a media conference.

“And today we met people, including someone who has worked here for 56 years. That says something about how important this is … this is the heart of this area in Whyalla, but the arteries spread out right around the country.”

Minutes earlier, Mr Albanese addressed workers at the steelworks, telling them the support package was an “investment in the nation”.

“Together with our respective cabinets … we make sure that we give you certainty — that we say, ‘Not only will you have a job, your kids will have a job in the future right here in Whyalla.'”

Support package targets payments and upgrades

The support package is split between immediate, short-term and long-term spending plans.

The first element includes $100 million for what the government described as “on the ground” support in Whyalla, including $50 million for creditor assistance payments and almost $33 million for infrastructure upgrades.

An allocation of $384 million will keep the steelworks and jobs afloat during the period of administration, ensuring “workers and contractors will have ongoing work at the steelworks and will continue to be paid”, the government said.

The government said the bulk of the money — $1.9 billion — had been set aside for new infrastructure under a new owner and was “vital to ensuring the steelworks has a sustainable, long-term future”.

Workers welcome announcement

Noel Goldsworthy has worked at the steelworks for more than five decades and described the decision to wrest control of the site from Sanjeev Gupta, and place it in the hands of administrator KordaMentha, as a “great move”.

“It’s been a long time coming — the frustration and the uncertainty is what the killer is for anybody in whatever they’re doing — so I think it was a very well executed plan,” he said.

“Obviously there’s a lot of creditors still that are owed money so we’ll just see where that all goes.

“But I think the mood is very positive, I think bringing KordaMentha in who’ve been here before I think also adds confidence that we’ve got an administrator that knows the business.”

Jules Kinslow said she was confident in the government’s claim of “jobs for the kids”.

“It’s a great day, seriously. I’ve been here 25 years and this is a good day. I’m really happy, I feel confident. My son works here, third generation,” she said.

“My daughter and son-in-law are small business owners here that have been affected by this obviously, and it’s going to come good.”