Entrepreneurs at risk in the event of GFG failure | Whyalla news
Opposition leader Peter Malinauskas has warned that local contractors and GFG Alliance suppliers could be “left out” if the company collapses.
Speaking at a press conference on Wednesday, Mr Malinauskas said contractors risked missing hundreds of thousands of dollars owed for work already undertaken.
He called on Prime Minister Steven Marshall to put in place “worst case” plans, saying the government should hope for the best and plan for the worst.
Mr Malinauskas said recent developments have given Mr Marshall an opportunity to echo Labor by providing interest-free loans to suppliers affected by GFG’s struggles.
“It would at least give these companies some confidence for the future,” he said.
Since Greensill’s collapse in administration, the $ 50 million pledged to GFG Alliance by the state government has remained on the table, with the Marshall government now that funding is not available for cash flow issues short term.
Mr Malinauskas said the government should not rely on an injection of money that could help make GFG more competitive.
“Why didn’t this money come … we had the Prime Minister sitting on that $ 50 million rather than using it as leverage to provide the capital investments that steel mills need,” he said. he declared.
“The government must convince workers that everything is being done to ensure that their jobs are maintained in the long term.”
Prime Minister Steven Marshall said there had been no call for a rescue from the GFG Alliance, and described it as a company that can “stand on its own feet”.
“The order book is full, productivity has increased, creditors are not blowing up, people are being paid in increasingly shorter deadlines,” he said.
“It’s too early to talk about interest-free loans … but for now let’s not solve a problem that doesn’t exist.”
Meanwhile, Greens Senator Sarah Hanson-Young has called on the federal government to be ready to buy out Whyalla Steel Mills if Sanjeev Gupta fails to refinance his business.
“South Australia’s unemployment rate exceeds that of the nation, if Whyalla Steelworks is not saved it will be even worse,” she said.
“By taking an equity stake, the government could accelerate Whyalla’s transition to manufacturing carbon-free green steel with green hydrogen, continuing South Australia’s role as a global energy leader. renewables and emission reductions.
“It’s a smart investment in jobs, the region and our country’s clean green future.”