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Rail track upgrade brought forward to provide 'considerable support' to Whyalla steelworks

Wednesday, 9 Mar 2016 04:36:52 | Chris McLoughlin

Arrium must make a decision on its Whyalla steelworks by April. (ABC News: Nick Harmsen)

An upgrade to 600 kilometres of the interstate rail line running north of Adelaide has been brought forward, with the Prime Minister saying it will "provide considerable support" to troubled Whyalla steelworks.

Key points:

  • Rail upgrade being brought forward by 'some years'
  • Whyalla steelworks traditionally supplies the track corporation
  • Announcement made during PM's visit to Whyalla

Malcolm Turnbull made the announcement during a trip to Whyalla, where Arrium's steelworks faces an uncertain future.

Mr Turnbull said that the Australian Rail Track Corporation is bringing a planned upgrade of the track between Adelaide and Tarcoola forward by some years and that based "on experience", the project will be fulfilled by Arrium.

He said that the company was, historically, the only maker of rail lines for ARTC.

"It has been a strong relationship," Mr Turnbull said.

"It will provide considerable support to Arrium here and the workers here in Whyalla."

Mr Turnbull's announcement came just hours after the South Australian Premier Jay Weatherill has urged the Prime Minister to have the Commonwealth buy steel from the Whyalla steelworks, as one way to keep the plant afloat.

Mr Weatherill said a rescue package for the steelworks in South Australia's north was an urgent matter, with a decision about its future due in April.

"We put a detailed proposition to [the Commonwealth] about the way in which they can bring forward some of their purchasing decisions of structural steel, in a way which would make a massive difference to the future of Arrium," Mr Weatherill said.

The Premier and Prime Minister Malcolm Turnbull had a private meeting in Adelaide last night with the state's struggling economy at the centre of their discussions — and the Whyalla steelworks, operated by Arrium, was the first order of business.

"This is a very urgent proposition," Mr Weatherill said.

"We're told that in early April key decisions will be taken about the future of the Whyalla steelworks in relation to Arrium so it's crucial that we have the capacity to respond."

He said at their meeting the Prime Minister was open to a state and federal assistance package.

"[He was] certainly very prepared to make a Commonwealth contribution," Mr Weatherill said.

"What form that will take is of course a matter for discussion, but there are things the Commonwealth could do which could make a very big difference to the future viability of Arrium."

Mr Turnbull is due to visit Whyalla today.

Arrium cut about 600 staff from its South Australian operations last year and hundreds more jobs were at risk if it was forced to mothball the Whyalla steelworks because of poor commodity prices.

Mr Weatherill acknowledged there was a "tight timeline" to finalise any assistance for Arrium before it settled on a final decision about the steelworks.

"I think it's a very short timeline to deal with the amount of work that we're going to have to do in a relatively short period of time," he said.

"We're talking about very substantial contributions from both the Commonwealth and the SA taxpayers and we first have to be satisfied that they are intelligent uses of taxpayers money."

Acting Mayor of Whyalla Tom Antonio said the situation had been emotionally devastating for locals, who still faced an uncertain future.

"There's no other words to explain it, these people are suffering, people are hurting and I think that's what we have to get across to the Prime Minister," Mr Antonio said.

"But I can tell you, as one person [I] will be driving it very hard that we need this package, we need this assistance, we've got to make sure that we work collectively on all levels of government to make it happen."

Mr Weatherill said he also raised with Mr Turnbull the issue of downgrading of works at the Australian Submarine Corporation as the Air Warfare Destroyer construction project wound down.

AustraliaPlus


 

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