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Minister for Industry, Innovation and Science

Leader of the House

7 April 2016

Statement on Arrium
The Federal Government is disappointed by todays announcement by the
board of Arrium to place the company into voluntary administration however
remains hopeful that a positive outcome can be achieved.
This is a difficult time for the workers and families affected, particularly in
While we are advised by the Administrator's that it remains business as usual,
the Federal Government stands ready to assist the workers of Whyalla.
The Government, through jobactive, already has a range of support services
available for workers who have recently lost their jobs from Arrium. Any
additional assistance would build on these existing employment services.
The State Government will have a key role to play in ensuring measures are
in place to support any workers adversely impacted.
The Australian steel industry is facing substantial challenges primarily caused
by the significant oversupply of steel. The Australian steel industry is not alone
in facing these challenges.
The Government has implemented significant policy reforms to support
Australias steel industry through measures to alleviate the costs of regulatory
burden including:

On 9 March 2016, the Prime Minister announced that the Government

will bring forward a project to upgrade 600 kilometres of rail line
between Adelaide and Tarcoola. The Australian Rail Track Corporation
will partner with Arrium to deliver the upgrade, substantially boosting
demand for steel production from Whyalla.

The Governments November 2015 anti-dumping reforms, which

address many of the concerns raised by Australian industry, have
significantly strengthened Australias anti-dumping system.

The Anti-Dumping Commission is also currently undertaking an

analysis of Asian steel and aluminium markets to identify trends in
dumping and consider ways to improve the efficiency of investigations
and possible additional measures.

The Government has delivered on its deregulation agenda by removing

more than $4.5 billion in red and green tape since September 2013.

The repeal of the carbon tax

The provision of a 100 per cent exemption from the Renewable Energy
Target for emissions intensive, trade exposed industries

The Building Ministers Forum (which brings together Federal, State

and Territory Minister) investigating non-conforming and non-compliant
building products.

The COAG Industry and Skills Council meeting Ministers agreed to

examine the opportunities and challenges of government procurement

Despite this work by both the State and Federal Government it is clear that
the issues being experienced at Arrium are not able to be addressed with
further regulatory interventions by government.