House of Assembly Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia House of Assembly published Question Time Economic Stimulus Package ECONOMIC STIMULUS PACKAGE The Hon. L. STEVENS House of Assembly Little Para ECONOMIC STIMULUS PACKAGE The Hon. L. STEVENS (Little Para) (14:23): Can the Premier inform the house how South Australia will benefit from the economic stimulus package passed by the commonwealth government last week? The Hon. M.D. RANN House of Assembly Ramsay Premier Minister for Economic Development Minister for Social Inclusion Minister for the Arts Minister for Sustainability and Climate Change ECONOMIC STIMULUS PACKAGE The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:23): The commonwealth government's $42 billion nation-building and jobs plan announced this month in response to the worsening global economic climate will bring significant benefits to South Australia. The package contains both a $12.2 billion household stimulus package of tax bonuses and other payments to households as well as a $28.8 billion program of investment in schools, housing, energy efficiency, community infrastructure, road and rail funding and a range of business assistance measures. I, along with all other first ministers, endorsed this package at COAG on 5 February this year, because I recognised the urgency of acting now to prevent an economic deterioration in Australia and South Australia. I believe that here in South Australia we are better placed than other states to weather the gathering economic storm. That optimism is shared by Access Economics in its most recent Business Outlook report which notes that: South Australia's share of Australia's economy is likely to climb more notably and more sustainably in the next few years than it has done at any time since the 1960s. However, no economy is immune from this crisis and this package is required to protect jobs for South Australians in these very difficult economic times. The Prime Minister has asked the state government to roll out the components of the stimulus package that relate to schools, housing, and road and rail infrastructure, and we are moving quickly to do this. Yesterday, I held a summit for hundreds of school principals and governing council chairs, as well as representatives from school and teacher associations and the non-government education sector to inform them about this package. On Monday, I met with representatives from business, particularly those in the building and construction industry. My message to both groups was clear: we do not have time to waste; we must capitalise on this opportunity and generate as much economic activity in this state as we can, as a result of the stimulus package. The commonwealth government time frames are clear: we need to have 690 primary school buildings under construction by the end of this year and completed by 2011. The building of high school science labs and language labs must begin by July this year. We need to build 1,500 social houses within three years. Upgrades to schools and housing begin this year, as does work on black spots, road maintenance and boom gates in regional areas. This will require a massive mobilisation of resources and a partnership between the state government, schools, industry and local government. We have put in place a dedicated team to manage the rollout of the stimulus package under Coordinator-General Rod Hook. We are committed to working with industry and schools to reduce any needless red tape and to implement these projects as quickly as we can. We are examining a range of options to streamline planning processes so that these projects can proceed as quickly as possible. This will provide us with even better education facilities to complement our own Education Works building program, the biggest school rebuilding program in this state in more than three decades. All regions will benefit from this; new school buildings will be built from Wudinna to Winkie. This package will also provide us with new and upgraded housing stock and better transport infrastructure. This investment comes at a time of unprecedented state government spending on infrastructure. Spending on infrastructure projects now, I am told, is six times higher than it was under the previous government. We will not be reducing our own infrastructure spending as a result of this package and we will be proceeding with the new $1.7 billion hospital, as well as the massive rebuild of our existing public hospitals; the $1.3 billion desalination plant at Port Stanvac and a raft of other water projects; the $400 million investment in Techport to develop facilities and capabilities to ensure we are Australia's shipbuilding hub; the extension of the tramline to West Lakes, Port Adelaide and Semaphore, with work to begin early this year; and the resleepering and electrification of our metropolitan rail network. We remain absolutely committed to our own infrastructure program. We have also made commitments to the Prime Minister and to local businesses and schools that the additional measures funded from the stimulus package will be implemented as quickly as possible. This will stimulate the economy and create local jobs for our tradespeople and contractors and with associated services. It will also complement our own education expenditure and generate even better education outcomes for our children.