Skills Development

The Hon. J.S. LEE (15:15): I seek leave to make a brief explanation before asking the Minister for Employment, Higher Education and Skills a question about South Australia's skills development.

Leave granted.

The Hon. J.S. LEE: The Civil Contractors Federation (SA Branch) expressed their disappointment in their media release on 8 October that the state government awarded the $10.5 million construction of the Penola bypass to a firm based in Victoria. Acting chief executive of the federation, Mrs Marie Paterson, said:

…it is difficult to believe that at a time when the state economy is in trouble, unemployment is on the rise and we have a seriously depressed local civil construction industry, that the government would send South Australian taxpayers' money over the border.

Along with this devastating news of South Australia losing another infrastructure contract interstate, our state is also losing qualified young people in their 20s to cities interstate, as they look for better career and lifestyle opportunities elsewhere. My questions to the minister are:

1. With South Australia losing infrastructure contracts to interstate companies, can the minister explain how the government is going to retain and improve the necessary skill sets required by our industries?

2. Knowing that South Australia is losing its best and brightest people interstate, what measures will the government introduce to bring back the young and capable workforce?

3. What assurance can the minister provide to local construction companies that they can continue to be competitive and be able to keep their business operating in South Australia?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (15:17): I thank the honourable member for her most important questions. It is most important, during this time of fairly tight fiscal constraint, that we continue our energies and efforts to ensure that we drive the South Australian economy in a way to create jobs, to encourage business growth and also new investment, and to continue to create jobs.

We have announced a number of initiatives to help grow jobs. We have invested $60 million in our jobs plan to stimulate our economy and to encourage investment and growth in business and also building a skilled workforce. We have also invested $63 million over three years in skills training and $44 million in initiatives for the resources and energy sector. We have invested $10 million in the Regional Jobs Accelerator Fund and $10 billion towards productive infrastructure.

I will just repeat that: we have committed $10 billion towards productive infrastructure—things like roads, rail, etc.—to help boost our economy, and it is anticipated that will grow around 4,700 jobs. We have also got a jobs plan aimed at securing our state's manufacturing sector and helping to diversify our economy. I know that all honourable members in this place are concerned about the future of Holden and our automotive manufacturing sector, so we have committed to:

accelerate the transformation of our manufacturing sector into advanced manufacturing through the support of clusters, as well as funding for collaboration and innovation;

accelerate the significant infrastructure projects to create jobs during that transition and to lift productivity;

the creation of our new Jobs Accelerator Fund (around about $20 million) to drive growth in our key industry areas;

initiatives to help retain displaced automotive workers to secure new jobs in emerging sectors;

helping the transition of automotive supply businesses into new markets; and

supporting northern suburbs' communities to help generate activities and jobs.

We have done a lot to help support business. We are a government and a state that are now open for business. We have developed detailed plans for jobs and supported this through a raft of other measures that grow business.

Members interjecting:

The PRESIDENT: Order! The minister has the floor.

The Hon. G.E. GAGO: We support business growth with investment through a range of initiatives: payroll tax concessions, reforming WorkCover (that is estimated to save $180 million to businesses), building a skilled workforce, supporting skilled migration, and providing more help for businesses to win government work through initiatives such as Tender Ready, in collaboration with Business SA.

Members interjecting:

The Hon. G.E. GAGO: I will go on to talk about new business growth in just a minute. The Small Business Round Table has been established to provide greater collaboration and communication between state government and the small business community. It will assist to fix up unnecessary barriers to business growth. We have also developed a new sector development coordinator role for the Chief Executive of Premier and Cabinet to assist projects that have been lodged that are valued over $3 million to move speedily through the bureaucracy, and we have also established a new simpler regulator unit to work with industries to remove and improve regulations.

I know that members opposite me like to dwell on the negatives in this state, but there have been a range of new investments and new jobs growth. We can look at SA Power Networks and its signalled intention to spend $2.49 billion in upgrading infrastructure, creating around 300 jobs. DP Energy Australia plans to build up to 59 wind turbines and rows of photovoltaic solar panels. They are looking at 450 jobs during construction and 20 full-time jobs when operational. There are a number of new stores at the Colonnades Shopping Centre, including Harris Scarfe.

Kimberly-Clark is investing $20 million in its Millicent plant, so there have been a range of initiatives in the regions as well. Bunnings, Redarc, the airport development, D'VineRipe, Condor Energy, Nyrstar, Sundrop Farms—the list is extensive and these are businesses, as I said, that are encouraged. Our jobs growth strategy encourages new business and attracts business investment. This government is working with businesses to help them grow and prosper.