The South Australian government says it won't have to spend as much money as it initially planned to keep the Whyalla Steelworks operating through administration, with a contingency fund revised down. As the government looks to ensure the plant is in good shape for its new owner, there are questions over the amount of taxpayer funding needed to keep it operational.
00:05This distributor in Adelaide's north was forced to import from overseas as the Wyala steelworks deteriorated.
00:12Now it's again buying from the steel city.
00:15We certainly will play our part in resurrecting Wyala to be a reliable manufacturer and supplier of steel.
00:22Another injection of federal and state government funding, this time $275 million, that aims to keep the steelworks running while a buyer is found.
00:32It's $109 million less than the government set aside in the state budget.
00:37And the reason for that is that the business is progressively getting back onto a better footing.
00:43It brings the total Wyala rescue package so far to more than $2.6 billion,
00:48to be largely spent on saving the operation after it was tipped into administration in February.
00:54This latest funding comes as the state and federal governments work on a support package for NEARSTAR
01:01to secure the future of the Port Pirie smelter,
01:04raising questions around how much taxpayer money should be spent propping up failing industries.
01:12How many blank checks does the Premier have?
01:15How much more money does the Premier have to utilise from South Australian taxpayers?
01:20Dr Daniel Rosetto says the government needs to be clear about where it'll draw the line.
01:26For the general public I think, I'm not necessarily saying they should be concerned,
01:31but they should certainly be asking questions about what is the value for money.
01:35The costs associated with doing nothing far outweigh the costs of making intervention
01:42to ensure that we retain a steelmaking capability and water in the country.
