Shorten tours Arrium steelworks

Opposition Leader Bill Shorten has visited Whyalla after pledging $100 million for the troubled Arrium steelworks there.

Leader of the Opposition Bill Shorten

Bill Shorten is pledging $100 million for the troubled Arrium steelworks in Whyalla. (AAP)

Labor leader Bill Shorten has visited Whyalla after committing $100 million for its troubled Arrium steelworks.

Mr Shorten arrived in the South Australian town on Thursday accompanied by South Australian Premier Jay Weatherill.

The visit along with a pledge for targeted grants and financing came after Mr Weatherill wrote to Prime Minister Malcolm Turnbull and the opposition leader seeking funding alongside a $50 million state government contribution.

Mr Shorten challenged the government to match the commitment, telling steelworkers on their lunch break it was the coalition that "waved goodbye" to the state's car industry.

"We are asking Malcolm Turnbull if he will put his money where his mouth is and take the issue off the political table and provide certainty and security," he said.

Workers weren't to blame for the global steel production glut or the decisions of Arrium management that had led to the troubles at Whyalla.

Mr Shorten took a dig at the prime minister, telling workers that leading the country was about more than just talking about agility and innovation - buzzwords frequently used by the prime minister.

"You contribute to this country," he said.

"What you do ask, legitimately, is that when the going is tough, that you've got a government in Canberra who appreciates what you do."

Standing up for the steel industry was not a hard decision, Mr Shorten said.

He spoke to production operator Callum Clark, who has worked at the site for 10 years, telling him Arrium workers had been paying taxes for decades.

Labor's $100 million pledge was a modest reinvestment given all they had done to support the nation, he said.

Arrium was placed in administration in April after negotiations with its lenders failed 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 could not be used to pay down the company's debts or meet operating costs, and if a future buyer of Arrium didn't maintain local steel production and jobs the funding would be withdrawn.


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Source: AAP



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