Investment and Trade

The Hon. P. CAICA (Colton) (15:01): My question is to the Minister for Investment and Trade. What are the factors behind the business investment growth in the recent CommSec State of the States report and the Deloitte Access Economics Investment Monitor?

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) (15:01): I thank the member for Colton for his question because there has been no better time to invest in South Australia. This is supported by both the CommSec State of the States report and the Deloitte Access Economics Investment Monitor.

The CommSec State of the States report released in July 2017 ranked South Australia amongst the top states or territories for business investment. Only South Australia and New South Wales had business spending in the March quarter above decade average levels: South Australia on top at 7.2 per cent, followed by New South Wales, 5.3 per cent. Compared with the March 2016 quarter, business investment in South Australia is up 19.3 per cent, also the highest increase in Australia.

I know that those opposite hate hearing this. They hate good news, but the Deloitte Access Economics Investment Monitor for June 2017, released on 26 July, confirmed that information. It lists 90 projects in South Australia that are either privately owned or public-private partnerships. Out of a total of 147 projects listed in South Australia, 61 per cent of investment projects in South Australia are at least partially privately owned.

The Deloitte report lists five notable projects Australia-wide added to the database in March 2017, two projects of which are in South Australia. Investment Attraction SA has been working with both the project proponents. According to Deloitte, between March and June 2017 total investment in South Australia increased 6.4 per cent, from $42.9 billion to $45.7 billion.

The Deloitte Access Economics Investment Monitor makes note of the $2 billion that has been committed by the South Australian government for road projects by the Minister for Transport over the next four years. Almost $1.5 billion-worth of projects are scheduled to finish construction in 2017. No wonder there are cranes up all over Adelaide.

The report also notes that the South Australian investment pipeline has received a boost from the state budget, with approximately $400 million to be spent on upgrading major hospitals over the next four years and $400 million for education and early childhood services by the Minister for Education. Contributing factors to our success are listed by these reports:

the SA government's major tax reform package, which will see $670 million in state tax reductions over four years;

South Australia's highly competitive environment and the ease of doing business, which supports profitable investments;

our highly skilled workforce, competitive labour costs, cutting-edge research and development facilities;

the pool of the state's quality graduates from South Australia's three highly regarded universities;

a dedicated program and strategy to promote SA globally via a scheduled program of trade missions (nine trade missions since July 2016); and

supporting 72,000 jobs (more exports means more jobs and more investment).

South Australia has a range of cost advantages. KPMG's Competitive Alternatives 2016 report found Adelaide was the lowest cost city in Australia to do business. You've got to give the Treasurer some credit: private sector labour costs in SA are 10 per cent below the Australian average.

I could go on with the string of good news and the string of positive messages. There could never be a better time to invest in South Australia. There are only seen to be a few nay-sayers: the five major banks and their branch in South Australia, the South Australian Liberals.