The Federal and South Australian Governments $2.4 billion support package for the Whyalla steelworks is going to plan, with funds now flowing to the Whyalla business community.
Applications for the Business Creditor Assistance Scheme were opened last week with $4.1 million in funding requested to date. The Whyalla Small Local Business Support Grant has also been opened, already delivering $30,000 in funding to local Whyalla businesses.
The funds were announced as part of governmental goals to provide immediate on the ground support for the Whyalla steelworks after its owner, OneSteel Manufacturing, was placed under administration amid various operational challenges at the site.
Following minor changes to the Whyalla Steel Works Act (1958) passing state Parliament, KordaMentha has been appointed as Whyalla’s administrator.
“We took action to ensure that Whyalla has a future,” SA Premier Peter Malinauskas said. “And we’re not wasting a minute in making sure we’re backing the community that has been doing it tough.
“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. This means businesses which otherwise would have closed are open. Workers who would have been retrenched are being paid and have confidence about the future.”
The SA Government has also established a Whyalla Special Economic Zone which will see any state Government procurement valued at $220,000 or more within the region, or projects that can deliver direct economic benefits, require a Whyalla Tailored Industry Participation Plan.
These plans will carry a minimum weighting of 30 per cent in the tender evaluation process, ensuring government-funded projects contribute directly to economic sustainment and growth in the region.
“It’s crucial that the local industry and workers in Whyalla are given a competitive edge, in the wake of the Steelworks going into administration,” SA Treasurer Stephen Mullighan said.
“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.”
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