Key independent senator Nick Xenophon has linked the future of troubled steelmaker Arrium and the fate of Holden workers to his support for the Turnbull government's budget repair measures.
During the federal election campaign the coalition promised to lend $42.9 million to the steelworks to upgrade machinery to help make the company attractive to potential buyers.
"You cannot have a credible budget repair strategy if you will blow the budget on a spike of welfare costs and plummeting tax receipts by abandoning key parts of our manufacturing sector," Senator Xenophon told the ABC on Thursday.
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