House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Question Time State Economy STATE ECONOMY Ms BEDFORD House of Assembly Florey STATE ECONOMY Ms BEDFORD (Florey) (14:29): My question is to the Premier. What recent news has emerged about South Australia's economy, and are there implications for government policy? The Hon. J.W. WEATHERILL House of Assembly Cheltenham Premier Minister for State Development Minister for the Public Sector Minister for the Arts STATE ECONOMY The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:29): I thank the honourable member for this important question. Since this house was last convened, we have seen a number of reports which have found that the South Australian economy is getting stronger. Last Thursday, it was pleasing to see the headline unemployment rate fall by 0.8 per cent to 6 per cent. At the time of the spike in the unemployment rate earlier in the year, those opposite were celebrating while the government expressed caution as a result of the ABS warnings about the methodology for that particular number. This stabilisation in the unemployment rate vindicates the government's caution about that data. In addition to this encouraging result on unemployment, we also have seen strong growth in business confidence. On 4 October, the Sensis Business Index found that small and medium enterprise confidence rose by a strong 14 percentage points during the September quarter to a 24 per cent net balance. This result shows confidence in the state is seven points above the national average. Sensis reports said that, 'Among the states, Queensland and South Australia were the most optimistic about the future direction of the economy.' This followed the BankSA State Monitor report— Members interjecting: The Hon. J.W. WEATHERILL House of Assembly The Hon. J.W. WEATHERILL: —which also found—I know this is awful news for those opposite. I know this pains them. This followed the BankSA State Monitor report, which also found that business confidence rose sharply in South Australia between May and September with a rise of 18.6 index points to 112.7 index points overall. This growing confidence has been reflected in the performance of the construction sector, supported by the government's initiatives to drive residential construction and our ongoing infrastructure program. Data from the ABS on dwelling commencements—the number of new homes that are under construction—found that, on a trend basis, the number of dwelling commencements in the June quarter was 17 per cent higher than a year earlier. This compares strongly with an 11 per cent rise across the nation. At the beginning of this year, the Leader of the Opposition said that the government's measures to support the economy were a false economy. Like the infrastructure program, like the construction and industry support, these are so-called 'false measures'. Well, they underpin the confidence that we are now seeing in our economy. We believe there is nothing false about 8,700 jobs in the South Australian economy over the forward estimates because of this infrastructure program. We don't think there is anything false about the extra dwellings under construction, like the 17 per cent extra which will be built in the year to June quarter. The economic data shows that the only thing false about the South Australian economy is the opposition's claims of gloom and doom. I think that there is a growing sense of confidence in the South Australian economy, and those opposite should just get on board.