Question Time

Economic Stimulus Package

Mr MALINAUSKAS (Croydon—Leader of the Opposition) (14:03): My question is to the Premier. Why is the Premier's economic stimulus spending in response to the COVID-19 pandemic the lowest in the nation? Sir, with your leave and that of the house I will explain.

Leave granted.

Mr MALINAUSKAS: South Australia's economic stimulus, as a percentage of the state's economy, is the lowest in the nation. Every other state's share of economic stimulus is higher. Why is the Premier refusing to adequately support South Australian workers and South Australian businesses?

The Hon. S.S. MARSHALL (Dunstan—Premier) (14:04): I thank the Leader of the Opposition for this important question and I note that we didn't have any questions whatsoever on COVID yesterday in question time. Finally, the opposition has found some interest in this topic. I was very interested, when I woke up the other morning, to turn on the radio to have the Labor Party out with their attack ads, their attack ads in terms of our economic stimulus and support.

My question to the Leader of the Opposition is: who paid for those ads? Because we know who paid for the last lot of attack ads that the Labor Party ran. It was the Leader of the Opposition's budget: the taxpayers of South Australia. And it reminded me, when I got up yesterday, that I must call the Treasurer and find out whether the Australian Labor Party—

The Hon. A. KOUTSANTONIS: Point of order.

The SPEAKER: Order!

The Hon. S.S. MARSHALL: —has paid the money back.

The SPEAKER: Order! The member for West Torrens rises on a point of order.

The Hon. A. KOUTSANTONIS: The Premier is debating, sir.

The SPEAKER: On the point of order, the member for West Torrens raises a point of order I presume in respect of standing order 98. I think the Premier has finished his answer. The point of order is as to debate. I note that in answering the question the minister is required to respond to the substance of the question. The Premier is doing so for the time being. I will listen carefully. I call on the Premier.

The Hon. S.S. MARSHALL: Thank you, sir; I was just providing some background. I am delighted that the opposition is interested in our economic stimulus and support, but I certainly don't accept whatsoever the premise of his question, which suggests that we've got the lowest rate of stimulus and support in the nation. I am not going to be lectured by those opposite regarding economic stimulus and support.

I am not going to be lectured by them because I can see what they would do. I've had a look at what they did during the global financial crisis, when they postponed projects, they cancelled projects, they cut the Public Service—all the things that we are being told by the Reserve Bank Governor, Dr Philip Lowe, that we shouldn't be doing. In fact, South Australia has followed very assiduously the advice of both Dr Lowe and also Dr Steven Kennedy, the Treasury Secretary, and we have applied ourselves diligently.

In fact, we were the first jurisdiction in Australia to implement a stimulus package. That was $350 million. We announced that right back in March this year. We followed it up with a further $650 million and, in addition to that, have provided now a further $1 billion in terms of programs, whether they be deferrals or waivers or funds or bringing forward of projects to create the economic stimulus and support.

By the end of this financial year we would have expended, I believe, around 90 per cent—that is the figure the Treasurer has provided—of that stimulus and support. Can I just say that what the federal Treasury and, of course, commentary by Dr Philip Lowe have shown is that at the state level there has been around 2 per cent of gross state product applied to date—around 2 per cent.

Members interjecting:

The SPEAKER: Order!

The Hon. S.S. MARSHALL: Our $2 billion is around 2 per cent because we have an economy, we have gross state product, each year of around $100 billion, so $2 billion is around 2 per cent, so that's what we provided. But I have said right from day one that there needs to be more.

But what we have learnt with regard to this terrible global pandemic—which is not just affecting other countries; it's affecting Australia, more specifically us here in our state—is we are not going to have a deep V and we are not going to have an immediate snapback; in fact, it's going to be with us for some time. So it's very important that we apply that stimulus and support over the life of this pandemic, and that's precisely what we are doing.

We are spending the taxpayers' dollars prudently. We are applying it to those areas which are going to have the greatest need. We are not wasting taxpayers' dollars. Yes, we know that the cost of capital at the moment is amongst the lowest in the history of the world, but it doesn't mean we can just spend any money without the relevant controls put in place. That's precisely what we are doing.

Members interjecting:

The SPEAKER: Order! Before I call the Leader of the Opposition, I call to order the member for Playford, the member for Badcoe, the member for Ramsay, the member for Lee—and I warn the member for Lee—the leader, the deputy leader and the member for Kaurna.