Opposition Leader Bill Shorten is pledging $100 million for the troubled Arrium steelworks, putting pressure on Prime Minister Malcolm Turnbull to follow suit.
Mr Shorten will make the announcement in Whyalla on Thursday, promising $100 million in targeted grants and financing.
It comes after South Australian Premier Jay Weatherill wrote to both leaders seeking funding, to go alongside a $50 million state government contribution.
BILL SHORTEN SPEAKS WITH LEON BYNER:
Mr Turnbull has dismissed any bailout as premature, refusing to commit any funds until the completion of a government-commissioned review.
Mr Shorten is challenging the prime minister to match his commitment.
He says modelling shows more than 3500 jobs will be lost and the state economy will shrink by more than $490 million if Arrium fails.
“If these jobs went, 3500 families would suffer enormously – that’s completely unacceptable to me,” he said.
“I’m not prepared to sit back and watch thousands of South Australian jobs disappear like the Liberals did when the car industry closed down.”
Arrium was placed in administration in April after failed negotiations with its lenders amid sustained low commodity prices.
Administrators KordaMentha expect the company to attract genuine interest from potential suitors, with the restructuring and sale of the group to be finalised by the end of the year.
Mr Shorten says he will work with the state government to set up a joint steel reserve to support Arrium to secure its future.
The steel reserve can’t be used to pay down the company’s debts or meet operating costs.
And if a future buyer of Arrium doesn’t maintain local steel production and jobs, Labor says it will withdraw its funding offer.
-AAP
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