STATE ECONOMY

Ms THOMPSON (Reynell) (14:25): Will the Treasurer advise the house of economic data recently released for South Australia?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:25): Yesterday in the house the member for Goyder claimed, I am advised, that 'ABS business indicators showed that quarterly growth in sales of goods and services in South Australia was the lowest in the nation'. It would appear that the member for Goyder was referring to ABS data regarding the December quarter results for business indicators. Yesterday's ABS retail sales data shows that South Australian retail sales, in fact, rose 1.5 per cent compared to an unchanged national growth rate. You got your figures wrong! In trend terms, retail trade was 9.7 per cent higher in South Australia than a year earlier, and this annual growth rate was the highest since October 2002.

Again, we see the opposition, in this place and through the media, talking down our economic performance. But, even worse, this morning we had the would-be leader—does he go around saying 'the alternative Prime Minister maybe one day'?—the federal shadow treasurer (Malcolm Turnbull) talking up the prospects of South Australia facing a recession. The federal shadow treasurer quoted the state's GSP figure of 0.8 per cent. Of course, we had already forecast that in the 2006-07 Mid-Year Budget Review but did not mention the fact that the state has been through one of its worst droughts in living memory, and then—

Ms Chapman interjecting:

The Hon. K.O. FOLEY: Just wait. But he did not mention the state's non-farm sectors, growing at a very strong and solid 3.1 per cent. It is fair to say that, if it was not for the drought's effects on the farm economy of South Australia, the economy would be growing at at least 3 per cent plus. I can also say this to the house. The state final demand figures show a growth of 1.5 per cent for the December quarter, consistent with the national average of 1.6 per cent.

Mr Hamilton-Smith: That's not right. You should have got those figures at 11am. Get your figures right. You have given a number of incorrect figures.

The Hon. K.O. FOLEY: I have given a number of incorrect figures? Right; we will see about that. But the important point is that our economy, despite the opposition's wanting to pick holes in it, is performing exceptionally strongly. We have had trend employment growth of 19,300, or 2.6 per cent, over the previous 12 months. The ANZ Bank recent reports say that current tight conditions in the labour market in South Australia will continue well into 2008. In trend terms, South Australian advertisements for jobs remain at historically high levels. The skilled vacancy index compiled by the Department of Employment and Workplace Relations rose by 3.5 per cent during December and was 13 per cent higher than a year ago.

Since this government came into office six years ago today, when the Premier and I were sworn in as the two-person government of this state—and, I think, objectively, I can say it was the best government the state had ever had—

The Hon. P.F. Conlon: Careful!

The Hon. K.O. FOLEY: —until the next government was sworn in the following day—up to that point, a total of 84,700 new jobs in trend terms have been created in South Australia. And the good data just keeps coming. South Australia's labour market remains strong, with total employment and the participation rate increasing, and unemployment remaining at 4.8 per cent, with full-time employment increasing to 534,900. Annual growth in South Australian exports is up 12 per cent.

Mr Hamilton-Smith interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Dear, oh dear! In the 12 months to December 2007, the value of South Australia's overseas goods exported totalled $9.5 billion. Some of the state's export commodities recording growth in the year included: wine, up $454 million (30 per cent); metals and metal manufactures, up $206 million (11 per cent); and machinery, up $31 million, (8.2 per cent). Of course, that is during a period where we have suffered one of the worst droughts in living memory, as it relates to other food-based commodities. The December quarter national accounts show that household consumption spending is up 4.6 per cent throughout the year. Housing construction is also up 4.6 per cent, outpacing national housing construction of 1.6 per cent. The number of houses approved for construction in South Australia is 23 per cent higher than a year ago and at its highest level since 1993.

The reality is that South Australia's economic performance is extremely strong—some would argue never been better—under the stewardship of this government. One can always attempt to find one or two indicators where the government is not performing as well as it is in other areas, and members of the opposition can delight themselves in trying to talk down this economy.

The Hon. P.F. Conlon interjecting:

The Hon. K.O. FOLEY: Exactly. The level of business investment and business confidence, and the level of excitement in the business sector in South Australia, are such that none of us has witnessed before. With the economic benefits of the defence contracts yet to be fully realised and the full economic benefits of the mining boom in this state, the future of this state is very healthy. I simply ask members of the opposition, instead of talking down the economy, instead of misrepresenting financial data and economic statistics, to get in behind this government and support it through this incredibly exciting economic time in South Australia.