Treasurer Stephen Mullighan spends big on Whyalla steel in 2025-26 South Australian budget
Treasurer Stephen Mullighan has promised $650m over six years for the steel plant as part of a $2.4bn 'sovereign steel package' backed by the federal government.
In his speech to the state parliament on Thursday afternoon, Mr Mullighan outlined where the money would go and said the allocation would preserve the state's industrial capacity.
'Our unprecedented intervention to place the Whyalla steelworks into administration has protected thousands of jobs, hundreds of businesses and ensured Australia remains a country that manufactures critical steel products,' he said.
'Under this government, South Australians will not be taken for fools by fast-talking businessmen that continually break their promises to our state … the ($650m) funding is for administration costs, investment in the plant to support the sale and for a comprehensive rescue package that safeguards the Whyalla community.'
The state government took control of Whyalla from British steel magnate Sanjeev Gupta in February and administrators KordaMentha are working to secure a buyer for the integrated plant.
Before the shock takeover, the steelworks suffered losses for months and the government grew increasingly sceptical Mr Gupta's GFG Alliance would meet its debt obligations.
The steelworks is a core economic engine for Whyalla, a town of 22,000 people, and the state more broadly.
It is Australia's only fully integrated steelmaking enterprise, producing slabs, billets, hot rolled structural steel and rail products.
Thursday's budget comes about nine months before the Labor government, led by Premier Peter Malinauskas, will return to the polls in March next year.
In a pre-election pitch, Mr Mullighan said the budget preserved the state's industrial capacity, supported farmers battling through punishing drought conditions and demonstrated the government's 'sound financial management'.
'We are the lowest taxing state on the mainland,' Mr Mullighan said.
'And we have kept our promise not to introduce new taxes or increase existing ones.
'We've done all this while returning the budget to surplus and improving the state's credit rating outlook.'
The budget delivers a surplus of $179m for 2025-26 and forecasts a $369m surplus for 2026-27 and $458m for 2027-28.
Those figures are predicated on gross state product growth rates of 1.75 per cent for 2025-26, and then 2 per cent for both 2026-7 and 2027-28.
Net debt is expected to expand from $35.5bn in 2025-26 to $48.5bn in 2028-29.
Law and order is also a big winner, with the budget delivering $172m over six years to accommodate additional sworn officers.
The state aspires to have a total sworn force of 5000 officers by 2030-31.
'While crime rates have fallen over the course of this government, we continue to toughen laws, expand our prisons and equip our police and criminal justice system with the resources needed to combat crime,' he said.
'This budget provides the largest boost to police funding in the state's history.'
A bid to lure the COP31 climate conference to Adelaide is also a standout allocation, receiving $8.3m.
A $118m cost-of-living package includes a stark boost for students.
The price of student metro card 28-day passes, which are used across Adelaide's bus, rail and tram network, will tumble from $28.60 to just $10.
The change means a student catching public transportation will pay the equivalent of 25 cents a trip.
The Liberal Party, led by Opposition Leader Vincent Tarzia, said the budget demonstrated Labor was 'out of money and out of ideas'.
Mr Tarzia said the state was now confronting a 'debt iceberg', citing the $48.5bn figure as the largest in the state's history.
'The debt iceberg will sink the dreams of future South Australians' he said.
'What's abundantly clear is that Labor is completely out of touch with the needs of South Australians and instead, is frivolously whittling away taxpayer dollars on vanity projects that don't deliver any relief from sky-high energy prices, water bills and the housing crisis.
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ABC News
2 hours ago
- ABC News
Do class actions really deliver justice?
Sam Hawley: On average, there's a class action launched in Australia every week. But do they really help bring justice to groups of Australians exposed to wrongdoing? Today, Anne Connolly on her Four Corners investigation into the class action traps leaving victims short-changed and lawyers richer. I'm Sam Hawley on Gadigal land in Sydney. This is ABC News Daily. Sam Hawley: Anne, in Australia, class actions have become pretty common, haven't they? It's a really important way to address injustices in this country. Anne Connolly: Well, yes, that's what class actions are designed to do. And I mean, when there were some really major catastrophes, such as the Victorian bushfires, the Queensland floods, class actions were taken to get some money back for those people. News report: Property owners around Horsham in Victoria have banded together to bring the first class action arising from the Black Saturday bushfires. Anne Connolly: Same with the pelvic mesh issue against Johnson & Johnson. News report: The federal court found Johnson & Johnson had been negligent and driven by commercial interest and ordered them to pay compensation. Anne Connolly: There's many, and they're very varied. Sam Hawley: Yeah, and you found during your Four Corners investigation, this is a billion dollar industry, but it's not always in favour of the individual victims. So to explain this further, why don't we look at a recent case, Anne, a legal fight between more than 8,000 Australian taxi drivers and Uber. Anne Connolly: Well, I mean, I think most people remember when Uber entered the market, obviously the taxi industry was absolutely decimated. They just couldn't compete any longer. One of the taxi owners I spoke to is a man called Stephen Lacaze. He said he had a licence in Queensland, which was at the time valued at about half a million dollars. It went to being virtually worthless once Uber came along. Stephen Lacaze, taxi owner: Oh, it was devastating. People virtually went into shock. Anne Connolly: So when Maurice Blackburn, which is one of the biggest class action firms in Australia, came along and proposed a class action, he was very keen to sign up. Stephen Lacaze, taxi owner: We were friendless. And here comes Maurice Blackburn with their Bradman-like batting averages, and their 'we fight for fair' banner, and we're there with bells on. Sam Hawley: OK, so Stephen was keen to fight this. Maurice Blackburn lawyers take it on, and they get a third party, a litigation funder, to pay the costs. Just explain how that works. Anne Connolly: Yeah, so what happens is Maurice Blackburn doesn't want to go this alone. So what they do is they engage somebody called a litigation funder. And litigation funders, they pay the lawyers' fees, they support them, and if they lose, they pay all of the costs, so there is some risk. But in return for taking that risk, they want a percentage of any payout that they win. So in this case, with Maurice Blackburn, they had a partnership with an offshore firm called Harbour Litigation Funding, which is actually registered in the Cayman Islands. It's a tax haven, and there's quite a few litigation funders in tax havens. Under this deal, they said, we want 30% of the proceeds. And Stephen signed up for that, as did most of the taxi drivers. Stephen said he did that because he thought they were going to get a payout worth billions because that's how much they'd lost. Sam Hawley: So in this case, Maurice Blackburn, the law firm, ends up settling this class action. So just tell me what happens then. Are the taxi drivers elated about this? Anne Connolly: Well, the night before the trial was due to start in March last year, Maurice Blackburn brokered a deal with Uber. That would be that Uber would pay $272 million in compensation. Now, once Harbour took its commission, that came out at $81.5 million. Maurice Blackburn took its legal costs, which came to $39 million. It means that the drivers were left with just over half the payout. Now, we don't know what individual taxi drivers will get. Stephen Lacaze believes he'll get about $20,000 once all of these fees and commissions come out of his payment, which he says is nowhere near what he lost. Sam Hawley: What did Maurice Blackburn have to say about that? Anne Connolly: They said the federal court had approved the settlement as fair and reasonable, and Harbour, the funder, said that the case was long-running and there were significant risks. Sam Hawley: Hmm, OK. So, Anne, that's the case of the taxi drivers against Uber, and we're going to talk about another really concerning case in a moment. But before we do, let's just look at the system more deeply. The worry here is that the whole class action system is set up to make profits for the law firms and the funders, but not deliver the justice to the victims, right? Anne Connolly: Well, there's some people who are concerned about that. I mean, the lawyers and the funders will say, without us, people would get nothing. The problem is that what's happening now is most people think a class action begins with a group of victims, but that's not really the case anymore. Now everything has changed because litigation funders have now entered the Australian market. So what happens is, it's the law firms and the litigation funders getting together and seeing, what are these issues that we could launch a class action on so that they can make money and then they can sign up the group members? So the concern is, are they really seeking justice for people or are they actually just finding a business opportunity so that they can make as much profit as they possibly can? Sam Hawley: Anne, let's now look at another case where the victims are left with, in comparison, petty change. Just tell me about Minnie McDonald. Anne Connolly: So Minnie McDonald is a woman in her 90s. She lives in Alice Springs and she was approached by Shine lawyers to become what's called the lead plaintiff in a class action in the Northern Territory for stolen wages of Indigenous workers who worked on cattle stations and missions for little or no money. Minnie McDonald, lead plaintiff: No shoes, get up in the morning, go to work. Come back afternoon, cold. Anne Connolly: So this case relates to the treatment of people like Minnie who, along with a lot of other... ..thousands of other Aboriginal men, women and children worked for little or no pay between the 1930s and the 1970s. Look, I just think, you know, one of the things I want to say about this is if ever there was a class action needed, perhaps it was in this particular case. I mean, there's questions about why the governments didn't just actually pay people what they deserved instead of being forced to court and forced to pay out compensation. But in any case, what Shine says and what the litigation funder says is we were doing our very best to get right a particular historical injustice. Sam Hawley: So the law firm Shine takes on this class action along with the litigation funder, Litigation Lending Services, and Minnie becomes the lead plaintiff. But the thing is, Anne, we know with legal cases, there's a lot of paperwork and Minnie had to sign a lot of that and she can't read or write. Anne Connolly: That's right, she can't read or write. So Minnie had her granddaughter Elizabeth to help her. However, Elizabeth does say, you know, it was complicated. It was difficult to understand at times. So Minnie did sign one document which said that Shine's costs had increased by $10 million and she signed off on that. I asked her about it and I asked her granddaughter if they remembered it. They didn't. I asked Shine, did they check that Minnie had the capacity to understand the complex legal and financial issues around class actions? They said being unable to read or write is no indication of intelligence and that they had an Indigenous barrister who helped to cross these cultural barriers and explain the process to them. Sam Hawley: So tell me what ended up happening with the case. Anne Connolly: So there were two class actions in WA and the NT and they both settled. So they didn't go to court. In Western Australia, there was a settlement for $180 million. In the Northern Territory, it was $200 million. Which sounds, you know, really positive. But what has to come out of that are the legal costs and the commission for the litigation funder. So they're not going to end up with that much. They'll end up with at least $10,000 and some will end up with more than that. Minnie McDonald, lead plaintiff: So somebody might... get a car and just take me for a picnic somewhere, you know, have a feed. But... I didn't get enough. Anne Connolly: You didn't get enough to buy a car? Minnie McDonald, lead plaintiff: Yeah, yeah. Nothing. Not enough. Anne Connolly: On the other hand, what's happened is Shine Lawyers is going to get about $30 million for its work. And the funder, Litigation Lending Services, they will take a commission of about $57 million. Sam Hawley: And you've had a really good look, haven't you, also, at the amount the law firm Shine was actually charging. Anne Connolly: Well, that's very interesting because Shine was roundly criticised in both WA and Northern Territory courts by the judges there. In one instance, Shine was charging for law clerks, charging them out at $375 an hour, even though many of them were unqualified uni students. They hired at least a dozen barristers that cost almost $3.5 million. One of those barristers charges almost $5,000 an hour. So, you know, the legal costs are the things that's really interesting. Sam Hawley: All right. So, Anne, the law firms and the funds are making a lot of money from these class actions in many cases. They do argue, as you mentioned, that they're actually giving people a chance to have these cases heard. What has Shine told you? Anne Connolly: Well, Shine said we were the only ones who were willing to take this on. We have given Aboriginal workers a chance to tell their stories. They've received compensation and they're being acknowledged for the historical injustices that they've suffered. And they said that these cases require experienced and well-resourced lawyers. And Litigation Lending Services, they said that they're proud of their involvement and that their commission was lower than the standard market rates because they wanted to reflect the social justice nature of these claims. Sam Hawley: And you spoke to the head of the Association of Litigation Funders. So this is a group that represents the firms that financially back these class actions, the funds. Its head is John Walker. So what's he had to say? Anne Connolly: Well, he said, look, you know, this is a market. This is a financial market that they operate in. They're trying to get some justice for people, but at the same time they're trying to make a profit and they don't shy away from that. John Walker, Association of Litigation Funders : We underwrite the project. We'll pay everybody if we lose, but in return, if we win, then we get a share of the recovery. We don't see it as gambling. We see it as investing. It's a market, and I don't step away from that. Anne Connolly: He essentially says, look, what we're doing is we're trying to correct the bad behaviour. Even if these class members are not getting enormous sums, it's sending a message to the big end of town that you can't operate in this way any longer. John Walker, Association of Litigation Funders : I'm absolutely proud of what's happened with class actions in Australia. They're absolutely essential to create accountability in respect of the big companies and governments. Sam Hawley: But, Anne, it does sound like a system that's not really working as it should. That is for the everyday people who need it. Anne Connolly: Well, I think what happens is a lot of people look at a class action sum and they believe that the sum that's been publicised is what people are getting. They don't realise that up to half of it can disappear in fees and commissions. The other point being the only class actions that actually get funded and get run are those that turn a profit. So when you're talking about others that might be very worthy, they won't get up if the bottom line doesn't look good. I think the problem arises when you're talking about people who have really suffered, such as these Aboriginal workers in the stolen wages cases who thought that they were going to get some proper compensation and what they're getting is simply a fraction of what they really deserve. And when they do see litigation funders and lawyers walking away with tens of millions of dollars, it makes it difficult for them to understand and sometimes it can feel like they've been exploited all over again. Sam Hawley: Anne Connolly is an investigative reporter with the ABC. You can see her Four Corners report on ABC TV tonight at 8.30pm or you can catch it on iView. This episode was produced by Sydney Pead. Audio production by Sam Dunn. Our supervising producer is David Coady. I'm Sam Hawley. Thanks for listening.
The Age
2 hours ago
- The Age
100,000 march in Melbourne and Sydney to protest Israel's bombardment of Gaza
As the crowd approached the police line, organiser Mohammad Sharab called on protesters to 'prove to the world that this is not a movement that will clash with police' and told them to stay back or sit down. 'We are sitting here for Palestine … peacefully,' he said. 'We need to calm down, show everybody who we are. We have women, children, vulnerable people. We are responsible people. 'They are holding their guns, their weapons, against people who are protesting peacefully. Shame on Victoria Police, shame.' One woman wearing a keffiyeh approached the police line to say 'keep our children safe' and another protester told the heavily armed officers the police blockade was a 'waste of taxpayer dollars'. Protest marshals formed a line to keep distance between the police and protesters. Demonstrators chanted 'Free Palestine' and 'Not a target'. 'Thank you for blocking the bridge. You did our job for us!' one masked protester shouted at the police. Standing on the bridge a few metres from the police line, Kevin Bracken said he had attended most protests and all had been peaceful. 'It's right over the top, isn't it?' he said. 'It's sending the message, who runs Victoria? They couldn't stop it in NSW, but the politicians here are puppet masters. This is about what's happening in Gaza. This is about starving children.' After the larger protest dispersed about 3pm, a small spin-off group stopped traffic and started burning an Australian flag and spray-painting 'Abolish Australia' on Spencer Street. When asked whether they represented the broader protest movement, one person in a grey hoodie and black mask shook her head and walked away. 'We're just concerned citizens,' said another. 'No group.' They chanted 'Too many coppers, not enough justice' and 'Free Palestine' before police arrived and the crowd of fewer than one dozen people dispersed. 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Palestinian activist Basil El Ghattis held up pictures of children aged from six months to 17 years old, suffering severe malnutrition from the aid blockade in Gaza. 'The starvation of Palestinians today is a page out of the colonial playbook,' he said. 'We must hold our government to account.' Earlier, a Victoria Police spokeswoman said the force repeatedly engaged with Melbourne protest organisers to persuade them not to gather on the King Street Bridge, but rally plans had not changed. She said officers would have a visible presence in the city on Sunday, with additional police brought in from outside metropolitan Melbourne. Police confirmed there were no arrests, but they were following up a report that an egg was thrown at a person during the protest Organisers from the Free Palestine Coalition said the police decision to bring in hundreds of additional officers was a waste of resources for a peaceful protest. 'Gaza is suffering from an ongoing forced man-made famine and ongoing bombing of civilians,' the coalition said. 'This is exactly why organisers are holding the protest to King Street Bridge ... to let the good people of the city of Melbourne know that there are atrocities happening in Gaza, and that we as a community have an opportunity to change the status quo, and bring about change.' Loading The Israeli government has denied claims of genocide and starvation in Gaza, claiming the war is an act of self-defence. Premier Jacinta Allan warned protesters there would be consequences for anyone who caused chaos in the CBD. 'There are strong operational arrangements in place for today. Those are in place to support people's safety,' she said at a press conference on Sunday morning before the protest. 'Anyone who breaks the law, anyone who compromises community safety will be dealt with swiftly by Victoria Police.' Opposition Leader Brad Battin said it was vital that rallies had to receive a permit to go-ahead and police were given powers to 'move on' protesters, to avoid circumstances where major roads were closed. '[The state government] hasn't brought the legislation in to ensure we've got registration of protests here in our state … to keep the community moving and keep the community safe,' he said. Last week, Police Chief Commissioner, Mike Bush, ruled out introducing protest permits in Victoria, saying they had not been a game-changer in other states. On Sunday, Battin urged the chief commissioner to reconsider, suggesting a stance against protest permits was the wrong message for Victoria. 'The chief commissioner has been here for a short period of time, not for all 92 of these protests that have happened in the city ... But the reality is, the legislation lies with the government.' The Victorian government last year announced it would criminalise face masks at protests and the use of glue, rope, chains and other devices that cause disruptions, but it is yet to bring the bill to parliament.
SBS Australia
5 hours ago
- SBS Australia
'A threat no one else sees': The daily, invisible burden of racism for First Nations Australians
Reconciliation Australia published a report in June charting a 15 percent increase in Indigenous people's experiences of racism over the past decade. It concluded that racism is an everyday reality for First Nations people. Kelleigh Ryan, a psychologist and descendant of the Kabi Kabi people and Australian South Sea Islanders, said the failed Voice Referendum brought up a lot of challenges for First Nations people. LISTEN TO Rumours, Racism and the Referendum "It was a great loss. And so it became this invisible blanket of aggression that people had a lot of difficulty with and those who didn't have time and space to grieve were still having to work through that grief," she said. Reconciliation Australia's research found young people and multicultural communities were the most likely to participate in truth-telling activities and celebrations of First Nations culture. Celebrating, reflecting, mourning: Indigenous and migrant perspectives on January 26 Jordan Young, a Darambal man, runs workshops that teach Indigenous culture to schools and businesses. He told SBS Examines it's helped break down negative stereotypes. You're not born with racism, it's a learned trait. "So being able to give these kids another viewpoint, another perspective on Aboriginal culture, is very, very important." This episode of Understanding Hate looks at the rising racism towards Indigenous Australians, and how we can combat the harms.
