CONSTRUCTION INDUSTRY

Ms BETTISON (Ramsay) (14:17): My question is to the Treasurer. Can the Treasurer please tell the house about the state's recent economic performance and, in particular, measures being taken to boost the housing construction industry?

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs) (14:18): I thank the member for Ramsay for her question. As members would be aware, the Australian Bureau of Statistics released its annual GSP figures last week and I am pleased to tell the house that South Australia recorded an economic growth rate of 2.1 per cent in 2011-12 with a GSP of $91.2 billion. Despite global economic uncertainty and a high Australian dollar impacting our exporters, this is the fourth strongest year of growth in South Australia in the past nine years. In per capita terms, South Australia recorded the equal third highest GSP growth rate of the states at 1.3 per cent, higher than both Victoria and Tasmania and on par with New South Wales.

I am also pleased to report that new business investment in the state at $12.5 billion in the 2011-12 financial year was at its highest level since statistics started being recorded in the mid-1980s. The state also recorded positive figures for individual industries. The state's mining sector grew by 4.1 per cent, manufacturing by 1.4 per cent, wholesale trade by 2.1 per cent and retail trade by 0.8 per cent.

While this was very pleasing, the GSP release also indicated that the construction industry detracted the most from GSP growth. The state government has taken decisive action to respond to this decline and support this industry and, of course, most importantly, its workers. In the 2012-13 budget the government announced a full stamp duty concession for eligible off-the-plan apartment purchases in the Adelaide City Council area and the Riverbank Precinct to 30 June 2014, with a partial concession available for the following two years. This stamp duty relief has received huge support from the property sector, with developers and real estate agents actively referring to the availability of the concession in their advertising campaigns.

On 15 October, the government also announced an increase to the first home owner grant for new homes from $7,000 to $15,000 and introduced the new $8,500 housing construction grant. The introduction of the housing construction grant has received unanimous support from the Real Estate Institute of South Australia, the Property Council, Business SA, the Urban Development Institute of Australia and many others. It also sparked positive interest from the community, as evidenced by the 1,818 phone calls to RevenueSA in only five weeks, not to mention the calls that have also flooded members' electorate offices, as well as the offices of real estate agents and developers. In fact, two weeks ago Brock Urban Projects stated, and I am quoting:

We've seen an increase in sales inquiries of about 200 to 300 per cent and then that's following through now with sales—sales are increasing as well.

This is a clear reflection of the positive impact that the government's new housing assistance package is having on the industry and the community. While the Liberal Party continues to talk down the state's economy and offer no policies of their own, this government continues to take action.

Members interjecting:

The SPEAKER: Order!

Mr GARDNER: Point of order: that is a long way from the substance of the topic he was asked about.

The SPEAKER: Thank you. I think the Treasurer has finished his response. The Deputy Leader of the Opposition.