Export Industry

The Hon. J.M. RANKINE (Wright) (14:39): My question is to the Minister for Investment and Trade. Can the minister explain to the house recent trends in South Australia's exports?

The Hon. M.L.J. HAMILTON-SMITH (Waite—Minister for Investment and Trade, Minister for Small Business, Minister for Defence Industries, Minister for Veterans' Affairs) (14:39): I thank the member for Wright for the question. There are a lot of small businesses in her electorate. In fact, 65,000 South Australian jobs are supported by exports and that's why the government is committed to seeing that number grow. Continuing growth in trade and exports will lead to a strong economy and the creation of yet more jobs.

Recent sets of official data and economic analysis show that the state government's export strategy is having an impact. In the targeted areas of goods and services, South Australia's overseas export performance has shown a welcome improvement over the past year. Figures released today add to that trend. Exports of goods and services in real trend terms in the March quarter 2016 were up 17 per cent compared to the previous year's March quarter. Let's compare that to the national exports of goods and services, which rose by 7.6 per cent over this period, indicating that South Australia has outperformed the national economy on exports.

My honourable friends with ministerial responsibilities in primary industries, health industries, education and tourism can all take a bow for their efforts in building a bigger export base for South Australia's businesses. Recent analysis shows that the figures are even better than they first seem. The latest economic briefing report by the South Australian Centre for Economic Studies shows that, due to global effects, prices for the state's overseas exports of goods and services in that March quarter for 2016 were 10 per cent lower compared to a year earlier in trend terms. Had South Australia's solid improvement in export volumes been matched by stability in prices or an increase in prices, the result would have been even better, the report shows.

The state's strong performance in areas where we can have an influence is helping to offset the global impact of a reduction in iron ore exports, particularly to China. I note that the economists at the University of South Australia suggest that the state has been successful in growing wine exports to China, with the value of alcoholic beverages exports up 89 per cent, or $120 million, in the 12 months to April 2016 relative to the previous 12 months. Exports of food and live animals also exhibited a healthy rise in these periods, up 36 per cent or $76 million.

The report concludes that results are consistent with the view that food and beverages offer significant long-term growth opportunities, given the potential for significant improvements in living standards in China and the ongoing shift in its economy to a more consumption and services-oriented growth path. Today, the ABS released broad figures for the month of May. South Australia's overseas goods exports in the year to May 2016 totalled $11.5 billion, up 0.7 per cent compared with the year to 2015. National exports for the same period, by comparison, are down 4.2 per cent. A breakdown of these numbers is again expected to show that South Australia is doing well in the areas where it can have an influence.

The results and the analysis endorse the state's export strategies that have targeted key markets in China, India and South-East Asia, and our re-engagement with traditional markets such as the United States of America and the European Union, which have also seen growth. This shows that the state government's export strategy, including trade missions, growing new markets and commitment to growing the premium food, wine, agriculture and advanced manufacturing sectors, is on the right track and delivering results in jobs and investment.