ECONOMICS

Ms THOMPSON (Reynell) (17:07): I know that it will be quite difficult to understand and to really comprehend this, but in 1969 I studied Economics 1. From there I proceeded to study Economics 2 and Economics 3, and I did reasonably well in all those subjects. We learnt about the tools of economic management. We learnt about the laws of supply and demand, the use of monetary policy and the use of fiscal policy.

We also learnt that one of the important tools of economic management was what was then called 'open-mouth operations'. I think, according to yesterday's Australian, it is now called 'jawboning'. I think it was Ms Heather Ridout who is very well recognised as a spokesperson for big business in this country. I cannot quite remember the name of the organisation for which she stands.

There are some famous examples of open-mouth operations, the most famous being Paul Keating's announcement about a banana republic, alerting Australians to the fact that we were not really going as well as we thought we were, that we were living on false hopes, and that we were going to have to develop a new economic regime.

As we know, the Hawke and Keating governments did realign Australia's economic credentials and set us up to survive the next turbulent years very well. Indeed, it was their reforms, complemented by some reforms of the Howard government, which put us in a position where the Rudd government was then able to develop measures to withstand the global financial crisis. The reason I leapt to my feet today was because I have just listened to a damning example of jawboning from the member opposite, and we have heard many examples of this from members opposite over the last couple of years. Indeed, the member did quote the report from which he was reading as saying words to the effect of, 'the possibility of the sale could have worse effects than the actuality of the sale', and that is because of jawboning, or open-mouth operations.

By talking about the fear of job losses, the fear of economic loss, the fear of overseas interests taking over Australian wellbeing, people are only too ready to believe it. Just as they got behind Paul Keating and took the necessary reforms, it is also possible to get behind this government and take reforms that are necessary to bring prosperity to South Australia and continue the record that we have.

We all know that the global financial crisis has made it difficult for governments everywhere, in many countries overseas—most countries overseas—far more difficult than it has in Australia. Treasurers everywhere have had to make difficult decisions but, in South Australia, we have also been aware of possible impacts that could be adverse, and the Treasurer has required there to be a regional impact statement and, in an unusual step, has allowed this to be open for public scrutiny by putting it on the website. But, what do we hear from members opposite? Constant jawboning of fear and damnation. Every single initiative is going to bring damnation. There is no optimism whatsoever ever portrayed by members opposite.

Mr Pederick: Go down and talk to the community.

Ms THOMPSON: If one listens to them, the state is doomed. Members opposite interject that I should listen to the community. In fact, I think if you look at my track record at election time, you will see that I listen to the community pretty well, and I know that they are made fearful by the statements emanating from members opposite. They are made fearful by silly statements made about the new Adelaide hospital. They do not understand the complexity of the medical system—the world market in the medical system—and it is very easy to engender fear.

It is far easier to engender fear and temerity than it is to engender hope and optimism that we can deal with the difficult situations that the world and our state encounter. There is no doubt that we do encounter difficult times. As I have already said, the times we are encountering are not nearly as difficult as what is happening in the UK, where old people are having their entitlement to coal—to keep them warm and, often, alive in the winter—cut by the current Conservative government over there. We are not looking at anything like that. We are looking at putting very tight conditions on the sale of the forward rotations of the forests—not even the sale of the forests. We are not talking about the sale of the land, and the Treasurer today has made clear exactly what is involved and what is not involved.

The Treasurer has also made it clear that there will be protective conditions on this sale to ensure that the welfare and the wellbeing of the South-East is taken into consideration. Of course we want there to be a prosperous South-East. Of course we are aware that people who have worked in one industry all their lives want to continue working in that industry. Of course we are aware that often they want their sons and daughters to be able to look forward to a future in that industry as well but, coming from an area where so many families have not been able to have their sons and daughters look forward to the jobs that they hoped they would have, particularly in Mitsubishi, etc., this government is aware that things change and that we have to be prepared for things to change.

Just as when so many people lost their jobs at Mitsubishi through world circumstances, this government was prepared to assist those people to retrain and get new jobs, and to invest in a fund that would enable new industries to be developed, so too, if there are any consequences in the South-East, this government will look after those people because we have confidence in the future of this state, unlike members opposite, who seem to believe that the state is totally doomed and who want to make everybody as miserable and unhappy and fearful as they can.

Members of the opposition are in a privileged position. They have access to far more information and knowledge than do so many of our constituents. It is the job of members of parliament to explain initiatives to people, to provide leadership to their community and a sense of optimism, not a constant sense of fear and gloom and doom.

Many people in South Australia have lost their jobs through manufacturing restructure. It has been very sad, and not all the outcomes have been good. This government learnt from what happened during the first round of redundancies at Mitsubishi. It conducted a comprehensive study of what happened and tried to implement programs that would overcome some of those difficulties. Still all is not good, but all is not in the control of this government. What we try to do is to look forward, look at the threats that we face in the future as well as now and deal with them.

I particularly want to emphasise the building of the new Royal Adelaide Hospital. The scare campaign that has been run by members opposite on this is just disgusting. The way they have been attacking and engendering fear in the most vulnerable in our community is totally irresponsible. The new Royal Adelaide Hospital is required to ensure that there will be excellent health facilities not just today, but for the next 20 and 30 years. It is required to ensure that we can attract the best in the world health practitioners because no longer do we just train our doctors at the University of Adelaide and Flinders University: our doctors come from around the world. We are a small player in the world scene, and we need to be able to offer something attractive.

At 17:18 the house adjourned until Wednesday 4 May 2011 at 11:00.