Analysis: The unprecedented ousting of a private owner was a big risk for SA Premier Peter Malinauskas, but it paid off in spades | Paul Starick

Mr Malinauskas’ political skill has been greatly tested by the Whyalla imbroglio but he has executed the plan methodically, surgically and patiently, writes Paul Starick.

The unprecedented ousting of a private owner from a substantial business like the Whyalla steelworks was loaded with political risk.

At any point, the ambush of Sanjeev Gupta could have spectacularly backfired and exploded in Premier Peter Malinauskas’ face.

Instead, the biggest gamble of his political career paid off in spades, with Prime Minister Anthony Albanese jetting into Whyalla to on Thursday morning to stand alongside the Premier and announce a funding package worth more than $2bn.

A gargantuan slice of federal funds does not arrive without months of negotiation and planning and this has undoubtedly happened in this case.

Mr Malinauskas’s political skill has been greatly tested by the Whyalla imbroglio but he has executed the plan methodically, surgically and patiently.

Politically, the Opposition and crossbenchers were marshalled in what the Premier labelled a “Team South Australia” moment.

Legislation enabling the legal blitzkrieg required to oust GFG was passed through both houses of parliament with lightning speed.

This extraordinary legislation, called the Whyalla Steel Works (Change on Property) Amendment Bill, was the first public confirmation that the government had lost patience with Mr Gupta’s longstanding promises to pay creditors owed hundreds of millions of dollars.

Premier Peter Malinauskas stands on Hummock Hill Lookout in Whyalla overlooking Whyalla Steelworks. Picture: Brett Hartwig

The forecast in my analysis last Friday played out – that Mr Malinauskas had lost patience with Mr Gupta’s empty Whyalla promises and wants to engineer a neat change of ownership.

Workers, contractors and businesses associated with the Whyalla steelworks now have the lifeline to the future that they had been seeking.

Complex moves will now play out. The steelworks’ future ownership is not certain – the Premier has ruled out nationalising the enterprise. This is likely to take some time but Whyalla’s future is now more assured.