South Australian Economy

The Hon. T.R. KENYON (Newland) (14:40): My question is to the Treasurer. Can the Treasurer inform the house about any recent data on the performance of the state economy?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:41): I thank the member for his question, and his keen interest, which is of great importance to South Australians. There are many indicators of the health of the economy, ranging from the ABS Annual Estimates of Gross State Product through to many other ABS reports, including other industry surveys and expectations, attitudes and results. There are also surveys by interest groups and, of course, anecdotal evidence. The more authoritative estimates and surveys show that the South Australian economy is performing well, despite the considerable headwinds this state faces with the destruction of our automotive manufacturing sector.

The ABS shows the economy is growing: jobs are being created, state final demand is increasing, exports are recovering, mineral and petroleum exploration is improving. South Australia has avoided the housing rollercoaster which is pricing young people out of the suburbs they know and love. Our market has much more stable growth in prices and, according to the Housing Industry Association Affordability Report for the June quarter of 2017, Adelaide is the most affordable mainland capital city with the average monthly loan repayments 55 per cent lower than Sydney and 40 per cent lower than Melbourne. The most recent Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report found that the proportion of income required by homebuyers and renters is lower than the national average.

The government has delivered to the business sector the biggest reduction in taxes and costs in the state's history, including a $220 million return per year in ReturnToWorkSA premiums. We have cut payroll tax, we have created the Job Accelerator Grant to encourage recruitment, and we have offered stamp duty concessions for off-the-plan apartments. Accordingly, positive results are being highlighted in economic surveys. Even today's BankSA survey showed an increase in consumer confidence, despite an unprecedented advertising campaign by the banking association talking down South Australia.

The Deloitte Access Economics Investment Monitor showed the value of investment projects in SA grew by 6.4 per cent in the June quarter, posting the highest growth of all states and territories. CommSec's State of the States report ranked South Australia top for business investment. The NAB Quarterly Business Survey, done after the budget, found business conditions improved in SA over the June 2017 quarter, with overall conditions ranked only behind New South Wales.

The NAB Quarterly SME survey recorded a strong improvement in the state's business conditions. Even the Sensis Business Index, on the outlook for SMEs, found expectations positive for all indicators. In contrast, our critics rely on unsubstantiated anecdote and push polling to try to paint a portrait of an investment drought in South Australia when the reality is very different. In recent weeks a British billionaire invested in South Australia through the GFG Alliance purchase of Arrium. Mr Gupta is investing in the future of Whyalla, its steelworks and its mining operations and plans to inject millions of dollars into the state. BHP invested a quarter of a billion dollars to open up the Southern Mine Area at Olympic Dam and committed to spend a further $350 million to upgrade its smelter. In the June quarter, OZ Minerals—

The SPEAKER: Alas, the Treasurer's time has expired.

The Hon. A. KOUTSANTONIS: No, it hasn't, sir.

Members interjecting:

The SPEAKER: I'm sorry; we were on different clocks. Treasurer.

The Hon. A. KOUTSANTONIS: In the June quarter, OZ Minerals invested $22.4 million in its Carrapateena project and $2.6 million on studies for its concentrated plant as it prepares for its major capital decision on Carrapateena this quarter. Elon Musk, one of the great disruptors and great billionaires of the United States, has partnered with a French company, Neoen, to invest in South Australia. Indeed, members of this house should not be fooled by commentators who misunderstand the purpose of the battery project. It is a good investment for South Australia. There are additional investments—alas, time has expired because of the Speaker's intervention.

The SPEAKER: I will not hear the member for Unley reflecting on the accuracy of that outstanding timepiece, the Crvena Zvezda stopwatch.