Latest news with #WhyallaSteelworks
ABC News
17 hours ago
- Business
- ABC News
New $384m contingency to keep Whyalla steelworks afloat during administration
The South Australian government has set aside another $384 million to keep the Whyalla steelworks running next financial year — doubling the amount already allocated to keep the plant operating during administration. After tipping the financially troubled Whyalla steelworks into administration in February, the federal and state governments announced they would spend $384 million — split 50/50 — to cover the costs of running the steelworks while they are prepared for sale. But that initial funding will soon run out, with steelworks administrator KordaMentha recently flagging that it could not keep the steelworks running beyond August without more money. Thursday's state budget revealed the state government has set aside another $384 million to keep the steelworks afloat next financial year. The extra money — which is a contingency and might not be spent in full — has been allocated "on the basis" that the federal government will cover half the cost, according to the budget papers. The ABC has reached out to the federal government for a response. SA Premier Peter Malinauskas said the government anticipates there is still "at least" 12 months to run with the administration process. "The objective here is to transfer the steelworks to a new owner — that was always the plan," he said on Friday. "We said from the outset that the first tranche of administration funding wouldn't be the last. We said that we anticipate it would take 18 months." The initial $384 million to keep the steelworks running was part of an overall $2.4 billion "sovereign steel package" put together by the state and federal governments to support Whyalla. The state's contribution to the joint state-federal package was $650 million, according to Thursday's budget papers. Asked if he was confident the federal government would cover half of the new administration funding, Mr Malinauskas said: "That's certainly what's occurred in the past and what we would anticipate occurs in the future." The money is being paid directly to administrator KordaMentha, which took control of the steelworks in February after the government lost patience with former owner OneSteel Manufacturing over unpaid bills and underinvestment. Representatives for KordaMentha have since said they were "shocked" by the state of the steelworks when they arrived, revealing the plant was losing $1.5 million a day before they took over. The administrators have also said the steelworks had "insufficient spare parts", "poor health and safety practices" and instances of "inadequate or no maintenance", leading to high costs in the first six months of the administration. SA Energy and Mining Minister Tom Koutsantonis said at the time it was "fair to say that we have discovered more things than we anticipated that have not been done that should have been done by the previous owners". OneSteel's parent company, GFG Alliance, which is chaired by British businessman Sanjeev Gupta, has previously disputed that it underinvested in safety during its time owning the steelworks. It has claimed to have spent "over $2 billion" on repairs and maintenance upgrades "to make Whyalla fit for purpose". "The safety of our people was always our number one priority and our record of an improvement in safety during GFG's ownership, speaks to that commitment," a GFG spokesperson said in March. The ABC has contacted KordaMentha for comment. Mr Malinauskas expressed confidence in the administration process today, saying the level of interest in the steelworks from both domestic and foreign companies is "higher than what we anticipated". KordaMentha has previously said there are up to 12 companies interested in buying the asset. "This is a massive integrated mining and steel production proposition — it is an exceptionally complex business in an even more volatile global market," Mr Malinauskas said. "So, anybody that's going to buy the steelworks … is going to need to do a lot of due diligence. "That work is what we're starting to see, many businesses have already had access to the site as a precursor to the formal sale process, that has gone well both overseas and domestic industrial players. "But there is a lot of work to be gone through here before they are going to result in a final transaction."
9 News
a day ago
- Politics
- 9 News
South Australian government's record crime and justice spend in state budget
Your web browser is no longer supported. To improve your experience update it here BREAKING Man and woman charged with murder of missing teen Pheobe Bishop The South Australian government has unveiled its latest state budget, with a significant emphasis on law enforcement and justice initiatives in the lead-up to the March election. While the government has acknowledged cost-of-living pressures, the budget's focus on bolstering the police force has drawn both support and criticism. A central feature of the budget is a $172 million commitment to increase the number of sworn police officers by 326, aiming to bring the total force to 5000 by 2030-31. Alongside the focus on crime and justice, the budget includes some help for families with school-aged children. (Nine) "[This aims] to make sure that South Australia doesn't get into the same sorts of trouble we see in other places around the country," Treasurer Stephen Mullighan said. More than $45 million has been allocated to enhance road safety measures, including the deployment of more mobile phone detection cameras. Alongside the focus on crime and justice, the budget includes some help for families with school-aged children. The $200 school materials charge discount and the sports voucher program will continue, while the cost of the 28-day student metroCARD will be reduced from $28 to $10, potentially saving families $242 per year. When questioned about whether there's enough relief for South Australians still doing it tough, Mullighan said "last year's budget included a really significant cost of living package aimed specifically at low income earners and it wasn't once-off relief". While the government has acknowledged cost-of-living pressures, the budget's focus on bolstering the police force has drawn both support and criticism. (Nine) However, Opposition Leader Vincent Tarzia criticised the government for a lack of help for struggling households. "Cost of living is the number one issue and there was a great opportunity for the premier and his government to deliver on that front," he said. The budget also allocates $70 million for drought relief and $384 million for the Whyalla Steelworks, anticipating an extended sale process - the funds contingent on Commonwealth support. While the budget is currently in surplus, debt levels are projected to rise, reaching almost $49 billion by 2028-2029. "Running budget surpluses while we are investing in the future ... taking on additional debt to fund those infrastructure developments gives us the confidence we can afford to service that debt," Mullighan said. This article was produced with the assistance of 9ExPress . 9ExPress South Australia Adelaide Politics CONTACT US Auto news:Is this the next Subaru WRX? Mysterious performance car teased.
News.com.au
2 days ago
- Business
- News.com.au
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.
Perth Now
2 days 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. '
ABC News
27-05-2025
- Business
- ABC News
Sara Garcia
Thousands of South Australian households and businesses are without power as the clean-up continues after the gusty winds, high rainfalls and high tides that lashed most of the state yesterday. 4m ago 4 minutes ago Tue 27 May 2025 at 12:30am Liberal defeats in the South Australian key battleground seats of Sturt and Boothby have prompted a scathing assessment from former senator Simon Birmingham, who said his party was in "rock bottom" territory. Sat 3 May Sat 3 May Sat 3 May 2025 at 12:37pm South Australia's ongoing dry conditions are being blamed for a power outage affecting more than 20,000 households and businesses across the Yorke Peninsula and parts of the Mid North. Fri 14 Mar Fri 14 Mar Fri 14 Mar 2025 at 7:45am Cricket Australia has confirmed the Sheffield Shield final will not be played at Adelaide Oval, saying on its website the AFL had blocked use of the iconic venue. Fri 14 Mar Fri 14 Mar Fri 14 Mar 2025 at 1:07am Whyalla's steelworks has gone into administration for the second time in under a decade. Here is a look at how events have unfolded in the city in recent years. Sat 22 Feb Sat 22 Feb Sat 22 Feb 2025 at 8:07pm Steele Hall's parliamentary career stretched more than 33 years, including stints in both the federal and state parliaments. Mon 10 Jun Mon 10 Jun Mon 10 Jun 2024 at 9:25pm The state government says this year's budget will focus on supporting South Australians who need it most as it pledges a $266.2 million cost-of-living package — while also keeping the budget in the black. Here's a look at the winners and losers of this year's budget. Thu 6 Jun Thu 6 Jun Thu 6 Jun 2024 at 6:29am Former Adelaide Crows captain Rory Sloane announces his retirement from the AFL after 255 games over 16 seasons, following a second round of surgery on a detached retina earlier this year. Mon 29 Apr Mon 29 Apr Mon 29 Apr 2024 at 4:51am The South Australian government is offering some live music venues the opportunity to apply for $60,000 grants to help revive the industry that was "decimated" during COVID. But one venue owner says it might not be enough to save the live music scene. Fri 12 Jan Fri 12 Jan Fri 12 Jan 2024 at 3:36am Promoters of a two-day South Australian music festival say they have been forced to postpone the event just weeks before it was scheduled to take place because of "economic pressures". Thu 11 Jan Thu 11 Jan Thu 11 Jan 2024 at 5:09am Jacinta Davila, who had been co-accused of murdering prominent Adelaide doctor Michael Yung during an alleged home invasion, has been granted home-detention bail. Fri 22 Dec Fri 22 Dec Fri 22 Dec 2023 at 1:11pm Two former immigration detainees released into South Australia after a High Court ruling are registered child sex offenders — and a third person is in custody over an alleged indecent assault, police have revealed. Tue 5 Dec Tue 5 Dec Tue 5 Dec 2023 at 3:42am Slain SA Police officer Brevet Sergeant Jason Doig has been remembered as kind, caring and a "much loved" member of his community, in a public funeral at the Adelaide Convention Centre. Mon 4 Dec Mon 4 Dec Mon 4 Dec 2023 at 3:04am On the one hand, is a $3 billion development to accommodate thousands of families. On the other, is a burial site that is of immeasurable cultural significance. The problem? They are both on the same ground. Tue 14 Nov Tue 14 Nov Tue 14 Nov 2023 at 9:29pm This suburban park in Adelaide's north-east used to resemble a small forest, filled with hundreds of well-established pine trees — but it has been left decimated thanks to an exotic pest. Tue 19 Sep Tue 19 Sep Tue 19 Sep 2023 at 1:59am After seeing how quickly her son Khye succumbed to the disease, Nicole Hammat wants young people to be more aware of meningococcal and is pleading for the B strain vaccine to be made accessible to more people. Sun 13 Aug Sun 13 Aug Sun 13 Aug 2023 at 8:25pm An Adelaide barbershop that bans women from entering its premises in order to provide its clients with a "male sanctuary" has applied for an exemption to the Equal Opportunity Act. Mon 7 Aug Mon 7 Aug Mon 7 Aug 2023 at 1:31am The number of respiratory syncytial virus (RSV) cases have jumped close to 10 times higher in some states across Australia when compared to last year. Experts say COVID complacency and higher testing rates could be why. Thu 6 Jul Thu 6 Jul Thu 6 Jul 2023 at 5:30am SA Police suspect two elderly people, who died one year apart, may have been murdered by the same person after abnormalities in both of their toxicology reports were found. Thu 29 Jun Thu 29 Jun Thu 29 Jun 2023 at 9:28am The state government will pour billions of dollars into fixing its troubled health system and abolish stamp duty for some first-home buyers — but it comes at a cost. Thu 15 Jun Thu 15 Jun Thu 15 Jun 2023 at 8:02am Australian man Jason Kennison dies while descending Mount Everest, a climb he had undertaken to raise money for Spinal Cord Injuries Australia. Mon 22 May Mon 22 May Mon 22 May 2023 at 1:30am A neighbour who was with Sean Ferris minutes before he stabbed two police officers and was then shot dead says the incident should never has escalated to this — as homemade weapons and a Samurai sword are removed from the property. Thu 4 May Thu 4 May Thu 4 May 2023 at 8:54am Unless you've lived in South Australia you probably have no idea what Stobie poles are, or why they are so iconic to their home state. Here's a look. Fri 31 Mar Fri 31 Mar Fri 31 Mar 2023 at 1:13am South Australia's Premier Peter Malinauskas has conceded he does not expect the state's First Nations Voice to Parliament to lead to sudden improvements but hopes that "over years and decades to come, there is some positive change". Mon 27 Mar Mon 27 Mar Mon 27 Mar 2023 at 7:51pm Thousands of people are without power across Adelaide as wild winds continue to lash the city. Mon 20 Mar Mon 20 Mar Mon 20 Mar 2023 at 4:04am
