NARELLE GRAHAM, HOST: Well, some days we visit them, other times they visit us. Answering my door this afternoon to the Prime Minister of Australia, Anthony Albanese, who received a round of applause in Whyalla earlier today. Thank you for being here, Prime Minister.
ANTHONY ALBANESE, PRIME MINISTER: It was great to be in Whyalla today meeting workers who've kept this country going and they are inspirational and today they got some certainty. They've had a difficult time with this issue hanging over their heads, but with the decisive action by the Premier yesterday and the South Australian legislation followed up by the commitments that we've announced today, they can be confident tonight when they go to bed that they will have a job ongoing and that the steelworks’ future can be secured.
GRAHAM: So, today, $2.4 billion package to support the steelworks. And how long has the Government been putting together this rescue package?
PRIME MINISTER: Well, we've been in discussions with the Premier for some time. We have thought all of this through. Obviously this isn't something that has just popped up because the uncertainty has been there for a long time – the failure to invest in the steelworks and upgrade the facilities so that it could thrive into the future. What we've done here is to allocate funds – $384 million for administration just so that the workers can continue to be paid, the contractors can continue to be paid as well and the steelworks can continue to operate – while the administrators go through the books and look for a new owner to operate the plant. But in addition to that, we're providing immediate on the ground support for local small businesses. In addition to that, we're looking at the steelworks’ future. What are the upgrades that are necessary? And we're signalling very clearly that we are prepared to work with a new owner to invest in the upgrades and new infrastructure that's so vital for the steelworks to have a sustainable long-term future.
GRAHAM: Your Prime Minister, Anthony Albanese is on ABC Radio South Australia and Broken Hill. So, you say some time, is that weeks or months?
PRIME MINISTER: Well, the administration we expect to be in place for months.
GRAHAM: Oh no, I mean how long have you guys – have you and the State Government of South Australia been planning this?
PRIME MINISTER: Oh, look, we discuss things. I'm not going to go into those timetables. We've obviously worked these things through. They've been through all of our proper processes.
GRAHAM: So, there's a lot of relieved and grateful people in Whyalla today, Prime Minister. And I don't want to be the Grinch, but is it too late for the likes of Fenner Dunlop who was one of the suppliers of the steelworks? They supply the conveyor belts – they pulled out of Whyalla on Monday.
PRIME MINISTER: Well, what we've been doing is working these issues through. This is a significant intervention. I make the point that the last time administrators were appointed there in Whyalla, in 2016-17, there wasn't a cent allocated from the Federal Government. We've been working these issues through. They've been through our processes as they have been of the South Australian Government. We've had Cabinet decisions, Expenditure Review Committee, et cetera, because we always want to make sure that every single dollar of public investment is value for money and delivers for taxpayers. What this does is ensure the future of the steelworks and it will make sure that those jobs there at the steelworks – 1100 of them directly, but many thousands of them indirect as well. But in addition to that, the steelworks provide structural steel. 75 per cent of Australia's steel that goes into our railways and our office buildings and our infrastructure and our defence industry. It's so important for our national security, for our national resilience, that the steelworks continues to operate.
GRAHAM: Okay, so why doesn't the Government buy it?
PRIME MINISTER: We think that things are best done – governments intervene where there's market failure. We've been prepared to intervene here, but we think that it will attract private sector operators and we, the administrators, will look for a new owner. That will require some support in the initial stages from the Government. But this is a business that is ideally located. If you were trying to invent a place, then you'd invent Whyalla with its skilled workforce, close to water and close to the port there, of course, which is a substantial port infrastructure. Close to the world's best, I think really, quality magnetite, if not one of the best sites in the world – very close to the steelworks there. And close to as well, where renewable energy can play a really important role in the future as well.
GRAHAM: And that magnetite, a key ingredient in green steel which I know is a part of this package today, is taking a step towards being able to produce green steel at Whyalla. Prime Minister, from details given to the media by the South Australian Government, GFG has reaped significant profits from the Whyalla facility. So, they gave us figures for 2017-2018, saying that the company, Mr Gupta's company, made $7.82 billion. And then in 2019-2020, it was $4.8 billion. And in that time period, $800 million went offshore, including repayments arising from the Greensill collapse, payments of intercompany loans with the GFG Group, purchase of Liberty South Korea business. Is there evidence of anything criminal here?
PRIME MINISTER: Look, I'm not going to on ABC radio go down that road. The administrators will have a look at -
GRAHAM: Okay, so they will check?
PRIME MINISTER: Well, that's what happens when administrators come in. They'll go through the books, they'll go through line by line. And that is their job and we'll allow them to do their job.
GRAHAM: With Arrium, you know, back in the day, 2016, you were still – you were around in government. I was around as a journalist.
PRIME MINISTER: No I wasn’t in government
GRAHAM: No you were a politician. That's true.
PRIME MINISTER: If I was in government, there would have been some action because Labor governments won't sit back and not do anything when you have a need to act.
GRAHAM: Well, Prime Minister, I meant as a politician. I meant you were a politician. And with Arrium, one of the levers that the Federal Turnbull Government pulled – that was to bring forward a rail project. In particular, it was upgrade of the lines between Adelaide and Tarcoola. I know there's a funding package announced today. What projects will your Government be tapping into that need steel or do we wait until the green steel plant is operating.
PRIME MINISTER: There's a range of projects – any infrastructure project that is underway will use steel. That's the point. And only Whyalla can produce the sort of steel that goes into rail lines. When I was the Infrastructure Minister in government, we upgraded through the Australian Rail Track Corporation, the biggest investment in rail in Australia's history, making sure that we rerailed the route all the way across to the west. And I well remember being there at Port Augusta, as well, for a ceremony that was taking place there some years ago when we were in government, more than a decade ago. So, no doubt projects that are underway, including there's rail projects underway for construction in Western Sydney, connected with the new airport. There's the metro project and rail projects in Victoria. There is metro projects in Western Australia. There's a range of projects that require steel in the rail sector, but everywhere else as well, the building you're in will have steel in it. As the one that I'll retire to later on today.
GRAHAM: Prime Minister Anthony Albanese is on your radio. Just a couple of more things to discuss. You said to workers in Whyalla today, not only will you have a job, your kids will have a job and a future right here in Whyalla. Does that depend though, on finding a buyer for the steelworks?
PRIME MINISTER: We'll find a buyer. I have no doubt about that. This is a very attractive proposition for investment by the private sector. And I'm very confident, as is the Malinauskas Government, that that will occur. One of the women who showed us around today was a fourth generation steel worker. I want there to be a fifth and a sixth generation.
GRAHAM: Yeah. So, on the 10th of February, Under Treasurer Tammie Pribanic told Budget and Finance that $3 billion was the number needed for Whyalla. Does that mean there's more money to come?
PRIME MINISTER: Today's announcement is there and it's outlined. I'm not familiar with Tammie, but we have made the announcement today. It's been worked through in great detail between my Government and the South Australian Government. Working together, which is what people expect, working together in the interests of these blue collar workers, but also in the national interest because this industry is so important for the national interest.
GRAHAM: Before I let you go, Labor hasn't announced a candidate yet for the electorate of Grey, which includes Whyalla. It's been held for a long time by Rowan Ramsey, a Liberal representative for that part of the world. He's retiring at the next election. Why hasn't Labor announced a candidate and do you have one?
PRIME MINISTER: We will be having a candidate, of course, in that seat, like every other seat. We always want to make sure that we get the right candidates. Rowan Ramsey retiring means that there's a real opportunity there. And the truth is that the Liberal Party haven't looked after that community and the Liberal Party have taken regional Australia for granted. And the fact that the last time it went into administration, the Liberal Government failed to give a single dollar of support says it all. My Government will stand up for regional Australia, whether it's this issue or the issue of Rex Airlines. Access by regional communities to capital cities is very important. And so we have had substantial investment there. I've travelled not just to Whyalla, but to Port Lincoln and other areas in regional South Australia. And we'll continue to work with the State Government here to give the representation that those local communities and regional areas deserve.
GRAHAM: Prime Minister, you've been very generous with your time. I appreciate it and I know you've made a lot of people relieved and happy throughout South Australia today. Thank you.
PRIME MINISTER: They were great people there today and it was just an honour to be with them. People who work hard to make a difference for their community but for their families as well. And it was good to give them some certainty going forward.
GRAHAM: Prime Minister, thank you.