Creditors attend the meeting with the KordMentha administration team on Monday. Photo: SA Premier Peter Malinauskas/Twitter (X)
A special economic zone for Whyalla has been declared by the South Australian Government to create local jobs from government projects.
The move follows the recent $2.4bn state-federal bailout of the Whyalla Steelworks after it was placed into administration.
Under the zone plan, any state government orders worth $220,000 for the region, or projects, will require at least 30 percent consideration for Whyalla industries under a tailored industry participation plan.
Under a tailored plan, the number of Whyalla businesses involved will be tracked as will the numbers of local workers and training, skills development, and upskilling opportunities provided.
The SA government says this model was successfully used in bushfire-affected regions, including Kangaroo Island and the Adelaide Hills, to support economic recovery and growth.
Treasurer Stephen Mullighan says it is “crucial” that local industry and workers in Whyalla are given a competitive edge after the steelworks went into administration.
“By establishing the Whyalla Special Economic Zone, the State Government is ensuring local businesses are prioritised when it comes to government projects in the area,” he says.
ONESTEEL CREDITORS
OneSteel’s small business creditors have so far applied for $4.1m under an assistance scheme that opened for applications last week.
A first meeting between creditors and administrator KordaMentha was held in the town on Monday.
The SA Government says under a new Whyalla Small Local Business Support Grant, $30,000 has been paid to local businesses having to cope with revenue shortfalls and unpaid debts.
These support initiatives are part of a $100m funding deal, which includes $32.6m for infrastructure upgrades and $6m for a Jobs Matching and Skills Hub.
The Legal Services Commission has also boosted its presence in Whyalla.
SA Premier Peter Malinauskas points out that these measures are not interfering with OneSteel’s administration.
“Importantly, (owners) GFG remains responsible for its debts. The State Government will not be bailing (Sanjeev) Gupta out,” he says.
“Money is flowing into the hands of small businesses that were left in the lurch much sooner than would otherwise be achievable through the administration process.”
