State Debt

The Hon. S.C. MULLIGHAN (Lee) (14:57): My question is to the Premier. Why did the government remove the upper limit on general government sector debt in its budget fiscal targets?

The Hon. S.S. MARSHALL (Dunstan—Premier) (14:57): That issue has been canvassed quite extensively by the Treasurer previously but, in short, the reality is that we want to grow our economy. We make no apology for growing our economy in South Australia. The cost of capital at the moment is at a historic low. I remember addressing the parliament on this issue in the past. We need to grow our economy, we need to grow jobs in South Australia and, from time to time, we do need to invest very significantly in some of the capital requirements of our state.

When we came to government, we didn't have the productive infrastructure in place that we need as a state to grow and to support that growth, so we are now proceeding with that work. One of the things that we have done and one of the major reforms that we have put in place is the establishment of Infrastructure SA, which will develop that long-range productive infrastructure plan and assure the people of South Australia that when we spend money on their behalf we are doing it for the highest value, highest return projects so that we get a return on that investment.

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: There is, of course, a cost of that capital, but we also look at the benefit from that capital being deployed on productive infrastructure that is just so necessary to get our state moving.