QANTAS

Mr PICCOLO (Light) (14:12): Can the Premier inform the house about the recent announcement by Qantas and the government's response in the current economic conditions?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Minister for State Development) (14:12): I thank the honourable member for his important question. I think all members of this chamber would have been as disappointed as I was to hear the announcement by Qantas this morning that they will not be proceeding with the new catering centre in Adelaide when the lease from the current facility expires in March 2013. We obviously share the concerns of the 150 workers and their families as they go into the next year with this obvious uncertainty about their future. The decision, of course, was made as part of a broader announcement on the future of Qantas operations, which also included other cost-cutting measures around the nation, including reductions in non-aircraft capital expenditure, the deferral of some aircraft due to manufacturing delays, and the reduction in domestic capacity growth.

This morning I spoke to the Chief Executive Officer of Qantas, Mr Alan Joyce, and made representations on behalf of the workers who are affected by this decision. I have also spoken to representatives from the relevant unions and will be having further discussions with them. Qantas has indicated to my office that it will be using a local catering supplier to replace its current operations, and the government expects Qantas to honour that commitment.

We are hopeful that the majority of workers currently employed will be able to be transitioned to other jobs within Qantas or the new catering firm to help cope with the increased demand that will obviously result as a consequence of the new contract. Despite the announcement by Qantas today, our economic fundamentals do remain strong. The most recent labour force data released this morning shows that South Australia's headline unemployment rate has fallen to 5.1 per cent in January at the same time—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —as our participation rate has remained steady at 63.3 per cent. This strength in a global economic environment of such uncertainty is pleasing, particularly considering—

Ms Chapman interjecting:

The SPEAKER: Order, member for Bragg, you are warned!

The Hon. J.W. WEATHERILL: —what we are seeing in Europe and the United States.