Latest news with #COP31
West Australian
a day ago
- Business
- West Australian
Treasurer Stephen Mullighan spends big on Whyalla steel in 2025-26 South Australian budget
The troubled Whyalla steelworks, law and order and a bold bid to bring the mammoth COP31 climate conference to Adelaide are the big winners from South Australia's pre-election 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. 'A budget like this leaves South Australia vulnerable to economic shocks, which could come from any direction in the current economic climate. '
Perth Now
a day ago
- Business
- Perth Now
What it costs to save Aussie steel industry
The troubled Whyalla steelworks, law and order and a bold bid to bring the mammoth COP31 climate conference to Adelaide are the big winners from South Australia's pre-election 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.' South Australian Treasurer Stephen Mullighan handed down the 2025-26 budget on Thursday. NewsWire / Dean Martin Credit: News Corp Australia Anthony Albanese and Peter Malinauskas addressed workers at Whyalla Steelworks after the takeover. NewsWire / Tim Joy Credit: NewsWire 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. The budget delivered substantial allocations to the Whyalla steelworks and to the South Australian Police. NewsWire / Dean Martin Credit: News Corp Australia 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. Mr Mullighan (left) and Premier Peter Malinauskas will return to the polls in March next year. NewsWire / Dean Martin Credit: News Corp Australia 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. 'A budget like this leaves South Australia vulnerable to economic shocks, which could come from any direction in the current economic climate. '
The Advertiser
2 days ago
- Business
- The Advertiser
Festival state eyes climate summit amid debt concerns
A state budget investment will kickstart preparations for Australia to potentially host the world's biggest annual climate change conference. South Australia's budget, to be handed down on Thursday by Treasurer Stephen Mullighan, will commit $8.3 million for Adelaide to get ready for the UN's COP31 summit. The federal government has selected Adelaide as its preferred city to host the event, if Australia's bid for the conference is successful. Analysis shows hosting the event would deliver a potential benefit to SA of $512 million. The budget will fund significant planning for security, transport and infrastructure at COP31, which Premier Peter Malinauskas said would be bigger than the AFL's Gather Round, LIV Golf, the Adelaide Festival and Fringe combined. "To deliver it will take a monumental logistical and planning effort … it is vital that we accelerate that effort and that is exactly what the state budget will do," he said. The budget is the last before the state election in March 2026. Sweeteners are unlikely with the government already locked into two big-ticket, long-term infrastructure projects: the $15.4 billion Torrens to Darlington tunnels project and the $3.2 billion new Women's and Children's Hospital. Those projects are the main reason SA's debt is heading towards $46 billion in four years. Opposition Leader Vincent Tarzia said the government must prioritise cost-of-living relief. "The Labor government has so far failed to deliver where it's most needed, with South Australians paying record high power bills and struggling with a housing affordability crisis," he said. "There are practical solutions that the Liberal Party have put forward, including stamp duty relief, reintroducing the home battery scheme and scrapping the GP payroll tax grab." The government will be expected to respond to calls for increased support for farmers and rural areas, amid the state's worsening drought. With dams running dry, no sub soil moisture, hay stocks at critical levels and farmers selling livestock, the agricultural sector will be hoping for an increase to the $73 million of support already announced. The impact on the budget's bottom line of the joint state and federal $2.4 billion support package for the Whyalla steelworks, announced in March, will also be monitored. The government has already announced $125 million over five years to remove a level crossing on a key northern suburbs thoroughfare, matching a federal funding commitment to the project. A further $171 million will go towards the expansion of a non-government school loan scheme, to increase eligibility for preschool infrastructure projects before the introduction of preschool for three-year-olds from 2026. The government will spend $13.9 million over five years to expand the Mental Health Co-Responder Program across Adelaide, in which mental health clinicians are paired with a police officer respond to mental health triple-zero callouts. A security task force to combat antisocial and violent behaviour across the Adelaide Metro network will also be rolled out as part of a $9.6 million investment in transport safety. A state budget investment will kickstart preparations for Australia to potentially host the world's biggest annual climate change conference. South Australia's budget, to be handed down on Thursday by Treasurer Stephen Mullighan, will commit $8.3 million for Adelaide to get ready for the UN's COP31 summit. The federal government has selected Adelaide as its preferred city to host the event, if Australia's bid for the conference is successful. Analysis shows hosting the event would deliver a potential benefit to SA of $512 million. The budget will fund significant planning for security, transport and infrastructure at COP31, which Premier Peter Malinauskas said would be bigger than the AFL's Gather Round, LIV Golf, the Adelaide Festival and Fringe combined. "To deliver it will take a monumental logistical and planning effort … it is vital that we accelerate that effort and that is exactly what the state budget will do," he said. The budget is the last before the state election in March 2026. Sweeteners are unlikely with the government already locked into two big-ticket, long-term infrastructure projects: the $15.4 billion Torrens to Darlington tunnels project and the $3.2 billion new Women's and Children's Hospital. Those projects are the main reason SA's debt is heading towards $46 billion in four years. Opposition Leader Vincent Tarzia said the government must prioritise cost-of-living relief. "The Labor government has so far failed to deliver where it's most needed, with South Australians paying record high power bills and struggling with a housing affordability crisis," he said. "There are practical solutions that the Liberal Party have put forward, including stamp duty relief, reintroducing the home battery scheme and scrapping the GP payroll tax grab." The government will be expected to respond to calls for increased support for farmers and rural areas, amid the state's worsening drought. With dams running dry, no sub soil moisture, hay stocks at critical levels and farmers selling livestock, the agricultural sector will be hoping for an increase to the $73 million of support already announced. The impact on the budget's bottom line of the joint state and federal $2.4 billion support package for the Whyalla steelworks, announced in March, will also be monitored. The government has already announced $125 million over five years to remove a level crossing on a key northern suburbs thoroughfare, matching a federal funding commitment to the project. A further $171 million will go towards the expansion of a non-government school loan scheme, to increase eligibility for preschool infrastructure projects before the introduction of preschool for three-year-olds from 2026. The government will spend $13.9 million over five years to expand the Mental Health Co-Responder Program across Adelaide, in which mental health clinicians are paired with a police officer respond to mental health triple-zero callouts. A security task force to combat antisocial and violent behaviour across the Adelaide Metro network will also be rolled out as part of a $9.6 million investment in transport safety. A state budget investment will kickstart preparations for Australia to potentially host the world's biggest annual climate change conference. South Australia's budget, to be handed down on Thursday by Treasurer Stephen Mullighan, will commit $8.3 million for Adelaide to get ready for the UN's COP31 summit. The federal government has selected Adelaide as its preferred city to host the event, if Australia's bid for the conference is successful. Analysis shows hosting the event would deliver a potential benefit to SA of $512 million. The budget will fund significant planning for security, transport and infrastructure at COP31, which Premier Peter Malinauskas said would be bigger than the AFL's Gather Round, LIV Golf, the Adelaide Festival and Fringe combined. "To deliver it will take a monumental logistical and planning effort … it is vital that we accelerate that effort and that is exactly what the state budget will do," he said. The budget is the last before the state election in March 2026. Sweeteners are unlikely with the government already locked into two big-ticket, long-term infrastructure projects: the $15.4 billion Torrens to Darlington tunnels project and the $3.2 billion new Women's and Children's Hospital. Those projects are the main reason SA's debt is heading towards $46 billion in four years. Opposition Leader Vincent Tarzia said the government must prioritise cost-of-living relief. "The Labor government has so far failed to deliver where it's most needed, with South Australians paying record high power bills and struggling with a housing affordability crisis," he said. "There are practical solutions that the Liberal Party have put forward, including stamp duty relief, reintroducing the home battery scheme and scrapping the GP payroll tax grab." The government will be expected to respond to calls for increased support for farmers and rural areas, amid the state's worsening drought. With dams running dry, no sub soil moisture, hay stocks at critical levels and farmers selling livestock, the agricultural sector will be hoping for an increase to the $73 million of support already announced. The impact on the budget's bottom line of the joint state and federal $2.4 billion support package for the Whyalla steelworks, announced in March, will also be monitored. The government has already announced $125 million over five years to remove a level crossing on a key northern suburbs thoroughfare, matching a federal funding commitment to the project. A further $171 million will go towards the expansion of a non-government school loan scheme, to increase eligibility for preschool infrastructure projects before the introduction of preschool for three-year-olds from 2026. The government will spend $13.9 million over five years to expand the Mental Health Co-Responder Program across Adelaide, in which mental health clinicians are paired with a police officer respond to mental health triple-zero callouts. A security task force to combat antisocial and violent behaviour across the Adelaide Metro network will also be rolled out as part of a $9.6 million investment in transport safety. A state budget investment will kickstart preparations for Australia to potentially host the world's biggest annual climate change conference. South Australia's budget, to be handed down on Thursday by Treasurer Stephen Mullighan, will commit $8.3 million for Adelaide to get ready for the UN's COP31 summit. The federal government has selected Adelaide as its preferred city to host the event, if Australia's bid for the conference is successful. Analysis shows hosting the event would deliver a potential benefit to SA of $512 million. The budget will fund significant planning for security, transport and infrastructure at COP31, which Premier Peter Malinauskas said would be bigger than the AFL's Gather Round, LIV Golf, the Adelaide Festival and Fringe combined. "To deliver it will take a monumental logistical and planning effort … it is vital that we accelerate that effort and that is exactly what the state budget will do," he said. The budget is the last before the state election in March 2026. Sweeteners are unlikely with the government already locked into two big-ticket, long-term infrastructure projects: the $15.4 billion Torrens to Darlington tunnels project and the $3.2 billion new Women's and Children's Hospital. Those projects are the main reason SA's debt is heading towards $46 billion in four years. Opposition Leader Vincent Tarzia said the government must prioritise cost-of-living relief. "The Labor government has so far failed to deliver where it's most needed, with South Australians paying record high power bills and struggling with a housing affordability crisis," he said. "There are practical solutions that the Liberal Party have put forward, including stamp duty relief, reintroducing the home battery scheme and scrapping the GP payroll tax grab." The government will be expected to respond to calls for increased support for farmers and rural areas, amid the state's worsening drought. With dams running dry, no sub soil moisture, hay stocks at critical levels and farmers selling livestock, the agricultural sector will be hoping for an increase to the $73 million of support already announced. The impact on the budget's bottom line of the joint state and federal $2.4 billion support package for the Whyalla steelworks, announced in March, will also be monitored. The government has already announced $125 million over five years to remove a level crossing on a key northern suburbs thoroughfare, matching a federal funding commitment to the project. A further $171 million will go towards the expansion of a non-government school loan scheme, to increase eligibility for preschool infrastructure projects before the introduction of preschool for three-year-olds from 2026. The government will spend $13.9 million over five years to expand the Mental Health Co-Responder Program across Adelaide, in which mental health clinicians are paired with a police officer respond to mental health triple-zero callouts. A security task force to combat antisocial and violent behaviour across the Adelaide Metro network will also be rolled out as part of a $9.6 million investment in transport safety.
Perth Now
2 days ago
- Business
- Perth Now
Festival state eyes climate summit amid debt concerns
A state budget investment will kickstart preparations for Australia to potentially host the world's biggest annual climate change conference. South Australia's budget, to be handed down on Thursday by Treasurer Stephen Mullighan, will commit $8.3 million for Adelaide to get ready for the UN's COP31 summit. The federal government has selected Adelaide as its preferred city to host the event, if Australia's bid for the conference is successful. Analysis shows hosting the event would deliver a potential benefit to SA of $512 million. The budget will fund significant planning for security, transport and infrastructure at COP31, which Premier Peter Malinauskas said would be bigger than the AFL's Gather Round, LIV Golf, the Adelaide Festival and Fringe combined. "To deliver it will take a monumental logistical and planning effort … it is vital that we accelerate that effort and that is exactly what the state budget will do," he said. The budget is the last before the state election in March 2026. Sweeteners are unlikely with the government already locked into two big-ticket, long-term infrastructure projects: the $15.4 billion Torrens to Darlington tunnels project and the $3.2 billion new Women's and Children's Hospital. Those projects are the main reason SA's debt is heading towards $46 billion in four years. Opposition Leader Vincent Tarzia said the government must prioritise cost-of-living relief. "The Labor government has so far failed to deliver where it's most needed, with South Australians paying record high power bills and struggling with a housing affordability crisis," he said. "There are practical solutions that the Liberal Party have put forward, including stamp duty relief, reintroducing the home battery scheme and scrapping the GP payroll tax grab." The government will be expected to respond to calls for increased support for farmers and rural areas, amid the state's worsening drought. With dams running dry, no sub soil moisture, hay stocks at critical levels and farmers selling livestock, the agricultural sector will be hoping for an increase to the $73 million of support already announced. The impact on the budget's bottom line of the joint state and federal $2.4 billion support package for the Whyalla steelworks, announced in March, will also be monitored. The government has already announced $125 million over five years to remove a level crossing on a key northern suburbs thoroughfare, matching a federal funding commitment to the project. A further $171 million will go towards the expansion of a non-government school loan scheme, to increase eligibility for preschool infrastructure projects before the introduction of preschool for three-year-olds from 2026. The government will spend $13.9 million over five years to expand the Mental Health Co-Responder Program across Adelaide, in which mental health clinicians are paired with a police officer respond to mental health triple-zero callouts. A security task force to combat antisocial and violent behaviour across the Adelaide Metro network will also be rolled out as part of a $9.6 million investment in transport safety.
West Australian
2 days ago
- Business
- West Australian
Australia urged to spearhead regional carbon tariffs
Teaming up with other regional economies to impose tariffs on carbon-intensive iron and other goods has been pitched as key to Australia's future as a major player in emerging green industries. The case for Asian carbon border tariffs has been made by think tank Climate Energy Finance days after the federal energy minister signalled openness to charges at the border on emissions-heavy steel and cement. Carbon border adjustment mechanisms, known as CBAMs, can level the playing field for heavy industries subject to domestic carbon pricing. Without them, steelmakers and other producers may choose to move factories offshore to countries with less stringent regulations on pollution, a problem known as "carbon leakage". The European Union has been leading the charge and its carbon border adjustment mechanism is scheduled to come into full force in 2026. There was a strong case for an Asian equivalent building on the 17 domestic carbon pricing schemes already across the region, Climate Energy Finance net-zero transformation analyst and report author Matt Pollard said. This includes Australia, which forces big polluters to pay a carbon penalty if their emissions are above a certain threshold via the safeguard mechanism. China, South Korea, Japan and Singapore also have carbon pricing in some shape or form. With most emissions-intensive goods produced in Asia for export traded within the Asia Pacific, a regional border mechanism would effectively function as a price on carbon in international trade. "As a result, lower-emission products can more effectively compete against higher-emissions products in a global market," Mr Pollard explained. The think tank wants Australia to spearhead the conversation as part of its bid to co-host the COP31 climate summit alongside Pacific nations. Climate Change and Energy Minister Chris Bowen would not rule out the possibility of carbon tariffs on specific sectors, such as steel and cement, during an interview on ABC's Insiders on Sunday He cited an ongoing review into carbon leakage headed by Australian National University climate change economics expert Frank Jotzo. "We want to ensure Australian industry is best placed to compete in a decarbonising world," he said on Sunday. Opposition energy and emissions reduction spokesman Dan Tehan criticised the minister for floating the idea immediately after winning the federal election. "He's put electricity prices up, he's put gas prices up, and he's put emissions up, and now he wants to follow Donald Trump's lead and put in place tariffs," Mr Tehan said on social media platform X on Sunday. Mr Pollard rejected the comparison to the US president's "erratically applied, economically and industrially destructive and investment-deterring" tariff agenda. "Carbon border adjustment mechanisms are not discriminatory, and enhance globalisation, international collaboration and climate action - which is intrinsically a global problem," he said. While they are tariffs by nature, carbon border adjustment mechanisms have the opposite objectives of the Trump administration's trade policies that are designed to "enhance protectionism and isolationism". The push for regional Asian carbon tariffs was welcomed by groups like clean energy industry body Smart Energy Council and economic think tank The Superpower Institute.
