INFRASTRUCTURE PROJECTS

Mr ODENWALDER (Little Para) (14:15): My question is to the Premier. Can the Premier update the house on recent comments about the role of infrastructure in supporting economic activity?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:15): The use of government funds to stimulate economies has been a practice adopted around the world since the onset of the global financial crisis. In Australia, the national economy successfully avoided recession through the commonwealth's stimulus program, which injected billions of dollars through infrastructure programs. Here in South Australia our government took the decision to maintain record high levels of infrastructure spending from 2008-09 onwards to ensure that we supported economic activity now as well as providing infrastructure to support growth in the future.

Lately, there have been growing calls from senior politicians and economic commentators that this approach be continued to support economic activity now and to deliver prosperity in the future. I note the new commonwealth Treasurer Joe Hockey has made clear the Coalition government will invest in road building, and I quote:

...so we can immediately stimulate economic growth, create jobs, and ensure Australians receive the productivity benefits of better infrastructure sooner rather than later.

The new Prime Minister said he wanted to be known as an 'infrastructure Prime Minister' who is going to 'put cranes in the skies'.

The Hon. I.F. Evans interjecting:

The Hon. J.W. WEATHERILL: Yes, things have changed, haven't they, after the election? We have gone from budget emergency to fiscal stimulus in the space of three weeks. I note that these comments are made while the federal budget is in both deficit and debt. Only today eminent economists Max Corden and John Freebairn released a paper making the case that governments take on debt in order to invest in infrastructure. Together, their paper argues that such an approach shifts the cost of infrastructure to future generations that will benefit from the infrastructure. Remember that phrase: 'benefit from the infrastructure' and 'future generations'.

This, of course, is the approach our government has taken to the subdued economic activity experienced since the onset of the GFC. We are investing in a range of projects—the Northern Expressway, the South Road Superway, the duplication of the Southern Expressway, the expansion and redevelopment of the Adelaide Oval—all supporting jobs and activity now for prosperity in the future. Similar projects such as the Royal Adelaide Hospital, the electrification of the Noarlunga line, the extension to Seaford, and the electrification of the Gawler line to Dry Creek provide jobs and economic activity now for infrastructure and services in the future.

I also note that the Premier of Western Australia, Colin Barnett, has said that he makes no apologies for the fact the government has loaded up the state credit card, saying the government needed to provide more infrastructure for WA. And the Western Australian Treasurer, Mr Buswell, told reporters the WA government's decision to increase debt levels was a conscious one because it would be used to pay for much needed infrastructure in the state.

In Victoria, Premier Denis Napthine has repeatedly refused to rule out taking on more debt, despite concerns it would undermine the state's AAA credit rating. Of course, there is only one lone voice that stands out against this tide of expertise and opinion, even amongst his own party colleagues. It is the leader of the state opposition. In contrast to his colleagues around the country—

Members interjecting:

The Hon. J.W. WEATHERILL: No.

Mr Marshall interjecting:

The SPEAKER: Well, the Premier is not responsible to the house for the Leader of the Opposition's policy, but I call the Leader of the Opposition to order.

Mr Venning: Come on! He was provoked. That's a bit harsh.

The SPEAKER: I warn the member for Schubert for the first time. I will listen carefully to what the Premier has to say.

The Hon. J.W. WEATHERILL: These are the words of the Leader of the Opposition:

Quite frankly, it is immoral. Why should we be spending up big at the moment only to put the burden onto future generations?

Just as Joe Hockey, Colin Barnett, Denis Napthine, and Professors Corden and Fairbairn think, it is to support jobs now and economic growth into the future. This is the balance of opinion that exists around this country.

Mr PENGILLY: Point of order: standing order 98.

The SPEAKER: I think the Premier has moved on from quoting the Leader of the Opposition. Premier.

The Hon. J.W. WEATHERILL: I am seeking to bring to the attention of the house the balance of opinion that is expressed across this nation, indeed across the world, about the importance of investing in our future to build a stronger South Australia rather than actually retreating and adopting the austerity measures which all around the world are being retreated upon because they only worsen the situation. This is the burden of opinion. We know how this all happened—

The SPEAKER: Alas, Premier, your time has expired.

Members interjecting:

The SPEAKER: And I call the deputy leader to order.