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Category: Steel / Federal Government / Government and Politics / States and Territories

Arrium bailout would put taxpayers' money at risk: Dutton

Monday, 11 Apr 2016 05:34:52

Administrators say there is "strong support and commitment" for Arrium. (ABC News: Michael Coggan)

A senior federal Liberal minister has effectively ruled out offering troubled Whyalla steelmaker Arrium a bailout.

Immigration Minister Peter Dutton insisted the Government did not offer financial aid to Qantas and SPC Ardmona.

He said the Government would not risk spending millions of dollars of taxpayers' money on Arrium despite a more positive outlook from administrators Grant Thornton over the weekend.

"For governments to take an equity stake or to try and pick winners — as Labor governments at a state and federal level have proven over many, many years — that is a fraught exercise, and ultimately you put at risk taxpayers' money," Mr Dutton said.

The company has debts of more than $4 billion and was placed into voluntary administration last week, putting more than 8,000 jobs at risk nationwide.

The administrators said in a statement over the weekend they would work with the South Australian Government's Steel Taskforce and that they believed there was "strong support and commitment" to ensure Whyalla's continued operations.

The South Australian Opposition has called for the Government to conduct an audit to find out how much steel has been sourced locally for major projects over the past 10 years.

The Opposition's Corey Wingard said more should be done to ensure major projects use Australian steel rather than cheap imports.

AustraliaPlus


 

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