House of Assembly Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia House of Assembly published Question Time South Australian Economy SOUTH AUSTRALIAN ECONOMY Mr KENYON House of Assembly Newland SOUTH AUSTRALIAN ECONOMY Mr KENYON (Newland) (14:22): My question is to the Premier. Can the Premier advise the house about the state's economic outlook in light of the analysis of the forecast issued today by Access Economics? 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 SOUTH AUSTRALIAN ECONOMY 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) (14:22): I am very confident about the state's economic outlook, unlike those opposite addicted to gloom, desperately unhappy every time there are good employment figures, desperately unhappy every time a new mine opens, desperately unhappy every time we reach a deal to get a new defence project in this case. Mr Gardner interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: Unlike those opposite, I have every confidence in South Australians, South Australian business and our economic capacity to grow and deliver real benefits. I have every confidence that we can build on the gains of the past 8½ years despite the opposition's talking our state down. The basic facts are that there has already been a major turnaround— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! We are trying to hear the Premier. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: Yes, they won't like the figures. We have already started— Members interjecting: The Speaker House of Assembly The SPEAKER: Leave the chamber if you don't want to listen. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: —closing the gap between South Australia and the nation to which Access Economics refers. In the 8½ years since the government was elected, we have added 122,300 jobs to the state's economy. In the eight years prior to that date, a total of just 50,800 were added—so more than double the jobs growth under Labor. But the comparison is much better than that because ultimately it is about full-time jobs. In terms of full-time jobs, nearly 80,000 full-time— Mr Marshall interjecting: The Speaker House of Assembly The SPEAKER: Order! I warn the member for Norwood. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: This is the Marshall plan: he wants the top job, he wants to be down the front. Look at them, Marshall and Gardner—that flying wedge, the machismo team. They are trying to get down there. They are muscling up to get down the front. Members interjecting: The Speaker House of Assembly The SPEAKER: Order! Mr Goldsworthy interjecting: The Speaker House of Assembly The SPEAKER: Order! The member for Kavel will be quiet. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: This is the bit they don't want to hear. In terms of full-time jobs— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! You are on the first warning, member for Norwood. Member for Kavel, you are misbehaving. If you want the House of Assembly to have a proper question time, sit down and be quiet; if not, leave the chamber. Premier, we will give you one more chance. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: In terms of full-time jobs, nearly 80,000 full-time jobs have been added since March 2002. That 80,000 in eight years compares to 5,000 in your eight years in government, and that is the difference. Business investment reached a near record high of almost $11 billion in the year to June. Total jobs stand now at 813,400, the highest level on record, with full-time jobs at nearly 552,000. Members interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: It is the highest ever, but you do not like it. That is because you are addicted to losing. Our workforce participation rate of 63.5 per cent is a near record high. Population growth of 1.3 per cent during 2009 is the highest since 1975. The CommSec economic report, released yesterday, notes that this compares with the decade average of only 0.8 per cent. During the full impact of the GFC in 2008-09 our state grew by 1.4 per cent compared to a national growth of 1.1 per cent. Everyone knows that Access Economics is a conservative forecaster, only taking into account projects that are actually locked in. With $71.5 billion worth of projects in the pipeline, South Australian prospects look strong. This pipeline of projects— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: —is the reason why the Economic Development Board believes South Australia can outperform the national economy in coming years. It updated its economic statement modelling to take into account the smaller than expected impacts of the GFC, to incorporate revisions to major projects sizes and scheduling. For the six-year period to 2015-16, this modelling forecasts annual gross state product growth of 3.4 per cent and annual employment growth of 1.7 per cent. The Access Economics report notes some challenges that will face the South Australian economy, particularly the exposure of the manufacturing sector to the high Australian dollar and interest rates. Of course, the Leader of the Opposition would lower the price of the Australian dollar, like her predecessor, putting people in a headlock. The report also notes that Australia's economic recovery is expected to strengthen— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: —supported by mining and associated engineering constructions. Access does agree that engineering construction has strengthened notably since mid-2008, with listed projects including the $1.8 billion desalination plant and the $860 million South Road upgrade. Residential approvals are picking up, with housing activity remaining solid. While commercial approvals are somewhat down since the education stimulus, projects in the Access forecast include: the $409 million Edinburgh Defence Precinct; the $201 million Lyell McEwin Hospital redevelopment; the new $1.7 billion Royal Adelaide Hospital; and the $450 million Adelaide Oval grandstand enlargement. Of course, we have the Convention Centre— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: —and the $200 million Westfield Marion Shopping Centre. Now, let's talk about mining. In 2002, South Australia was home to four major operating mines. Today, that number stands at 12, and in coming months it is likely to grow to 16 in construction or production— Members interjecting: The Speaker House of Assembly The SPEAKER: Order! The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: —with around 30 more in line for development. Madam Speaker, I could keep discussing this further— Members interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: Oh, you want me to? Okay. In 2008-09, our state's mine gate production value reached a record level of $2.87 billion, which is an annual increase of more than 9 per cent. In the five years to June 2009, the value of our exports more than doubled. In 2014-15, it is forecast that 40 per cent of our total commodity exports will be minerals. You can talk the state down; we will keep going, creating jobs.