Bills

Appropriation Bill 2015

Second Reading

Adjourned debate on second reading.

(Continued from 22 September 2015.)

The Hon. J.S. LEE (15:23): I rise to make a few remarks about the Appropriation Bill. After 13 years of mismanagement, households and businesses in South Australia continue to be disappointed by the budget that the Labor government handed down on 18 June 2015 this year. The Weatherill Labor government has delivered a dangerous job crisis with the highest unemployment rate and worst business conditions in the nation.

As a proud South Australian, of course I am happy to hear that Adelaide was named the world's fifth most liveable city. However, it is not good enough to live in a great city if there are no jobs. Individuals and families are having sleepless nights worrying about job security and escalating costs of living.

The state Liberals are calling on the Weatherill Labor government to start having an honest conversation about the South Australian economy. It is difficult to use the phrase 'honest conversation' with the Labor Party because, in the last few years, they have been misleading the public about so many broken promises they have made. It is time for the Weatherill government to take a closer look at themselves. Instead of ignoring the facts and key economic performance data facing our state, the first step towards fixing our economy is for the Weatherill Labor government to admit that we have a problem.

As we know, South Australia is experiencing the highest unemployment rate in the nation and the value of merchandise exports has plummeted by $1 billion over the last 12 months. It is concerning that we already have the highest unemployment rate in the nation before the closures of the Port Augusta power stations, the Leigh Creek coalmine and Holden. South Australia continues to suffer at the bottom of the pack in terms of business confidence and conditions. To turn around the state's fortune, the Weatherill Labor government needs to get South Australia's fundamental policy setting right.

To create jobs in South Australia we need to lower taxes and reduce red tape to encourage business investment and economic growth. Small businesses are the engine room of our economy. Collectively, they can generate many new job opportunities. While I and the export sector welcome some of the trade delegations coming to South Australia in recent times, particularly from Shandong China, I am terribly concerned about the federal Labor Party, under Bill Shorten, working with the union to frighten people off about the China-Australia Free Trade Agreement.

The Construction, Forestry, Mining and Energy Union has run a campaign against the FTA, warning that there will be negative consequences of the deal for Australian jobs. Business leaders and industry that I am speaking with want the deal completed in the interests of economic growth. I call on the Weatherill government to also call on their federal leader to reveal their campaign.

Improving business conditions is the only sustainable means of growing South Australia's stagnant jobs market. The latest labour force data has revealed that there are now 20,000 unemployed people in Adelaide's northern suburbs. This is an increase of 42 per cent compared with the figures in August 2014. The northern suburbs unemployment rate is now at 9.4 per cent, getting closer and closer to the dreaded double digits. This is not something to be proud of

In a recent estimates hearing, the Minister for Automotive Transformation revealed that $14.9 million of the $22 million budgeted for the Our Jobs Plan had been spent in the first two years of the program. That means one-third of the available funding was unspent, including grant funding for the automotive supply diversification and retooling programs.

There are many vulnerable families living in Adelaide's northern suburbs. It breaks my heart to see what is happening out there. They are doing it tough. I am sure that jobseekers would not be happy to learn that the Weatherill government is saving the money it said it would spend on its jobs plan. Adelaide's north is in grave danger of becoming a jobs-free zone if the Weatherill government waits until it is too late to deal with the closure of Holden and its flow-on effects in the broader automotive sector. The state government must reduce taxes and red tape, assist exporters and develop productive infrastructure.

It is time for the Weatherill Labor government to swallow its pride and start adopting the job-creating measures proposed by the state Liberals, unlike some Labor government members who have argued that it is simply not good enough to be aware of the challenges facing the state and do not have a plan to address those issues. Let me outline and put on the record here again the Liberals' plans, which have already been announced by state Liberal leader, Steven Marshall. The state Liberals have proposed:

bringing forward planned stamp duty relief to take effect this year, not in the future;

increasing the payroll tax threshold permanently to lower the cost for businesses to employ people and create jobs;

slashing emergency services levy bills by reversing the $90 million emergency services hike announced in the 2014-15 state budget;

commencing to build the Northern Connector road to link the Northern Expressway with the South Road Superway;

finalising the feasibility study for upgrading the Strzelecki Track to unlock tourism and mining opportunities in the state's north; and

establishing a state-based productivity commission to remove unnecessary regulations and red tape.

We do not have to look very far to know that there are many issues and problems facing our state, just look at all the select committees that have been called on by the Legislative Council for review. We have problems in looking at child protection issues, we have problems in looking at the health system of the state. There are so many things that the state government now needs to review. With those few remarks, I commend the bill to the chamber.

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) (15:30): I do not believe there are any further contributions to the Appropriation Bill, so I rise, obviously in support of the bill, to conclude the debate with a couple of very brief comments.

The government is keenly aware of the economic challenges facing South Australia, that is why we are taking action and why we have a plan that clearly outlines the 10 economic priorities for the state. We have recognised that our heavy reliance on the traditional manufacturing sector, particularly the automotive industry, combined with declining commodity prices in the mining sector, are presenting clear and very real challenges for our state.

Having said that, we are a state that can recognise where opportunity lies. Our state's circumstances mean that we can and must be nimble and agile in our responses to issues as they arise. But, to paraphrase the French scientist Louis Pasteur, 'Fortune favours the prepared mind.' We are positioning South Australia to identify and act swiftly and certainly upon opportunities where they present themselves and in doing so ensure that our resources achieve the maximum benefit for all South Australians.

The question of risk is obviously important here. I note that those opposite have not taken the risk of presenting any policy of any substance that might address the challenges that face South Australia. Where there could be coherent big policy ideas from those opposite, there is simply a void, an empty space. To those opposite, risk is confined to lunching at a restaurant they have perhaps not been to before, or perhaps wearing a brightly coloured tie. I think that is the extent of their risk taking. For them, the idea of presenting policies is simply too risky when, by staying mute and keeping a low policy profile, they still hope that government might, one distant day, happen to fall into their lap.

It does not work like that. We have taken a risk. We have nailed our colours to the mast. We have carefully assessed the situation and set 10 clear economic priorities for the state. As a state, working hand in hand with industry, employers and community leaders, we are certain that we can summon the determination and spirit to shape our own future. We are committed to moving forward with a renewed federal government to take every opportunity to advance our state. We welcome the possibilities that a less negative and more forward-looking federal government could bring to the table.

In the meantime, the consequences of the previous federal Liberal leadership are still hanging over the state like a grim economic shadow. The withdrawal of $500 million of federal support for the car industry and the closure of Holden has not been reversed. The federal government's cuts of $5.5 billion to health and education have not been reversed. The broken promise of the $20 billion submarine contract has not been reversed.

All South Australians know that when a leader gives his word, when people act, and vote, on that word, and he then reneges on that promise, it is a mark of shame and a fundamental breach of trust, and members opposite recognise that shame. In fact, their federal colleagues were, to their credit, sufficiently moved to act to remove the former leader. Now, with a new leader, the opportunity exists to build new bridges. We welcome that opportunity.

In addition to our long-term goals and vision, this year's budget saw a number of bold initiatives that responded to the needs of industry, in addition to our significant infrastructure agenda. To unshackle them from unnecessary burdens of doing business in our state, we abolished five taxes that inhibited economic activity. We have reformed WorkCover by reducing premiums from 2.74 per cent to 1.95 per cent, a $180 million saving for 48,000 businesses.

Additionally, we must not and should not shy away from our achievements so far. We have invested heavily in renewable energy, which is yielding terrific results. Renewables now account for 39 per cent of our electricity generation, way ahead of our initial target of 20 per cent. We have worked hard to build a reputation as an international education destination of choice, now, at over a billion dollars annually, our largest service export. We have established the largest biomedical precinct in the Southern Hemisphere, which includes SAHMRI and the new Royal Adelaide Hospital. Our state's scientific and biomedical R&D base holds extraordinary potential.

Our premium clean and green food and wine industries are taking advantage of the immense possibilities of the expanding Asian markets to the north. We are going out and making a name for South Australia as a reliable, high-quality, premium business partner within the world's most dynamic zone, Asia. Our traditional bases in the mining, defence and manufacturing areas are also responding to change by seeking out global opportunities within niche and expanding markets. We are working hard to push forward this bold vision in the certain knowledge that more brilliant possibilities open up to those who seize these opportunities.

We have shown that we can stand shoulder to the wheel with industry and our federal representatives, looking for each opportunity to drive our economy and our people forward with the resolute determination that South Australians are well known for. If only those opposite would join their colleagues and us, imagine the possibilities for this state. Again, I thank honourable members for their contributions and their support and I look forward to dealing with this expeditiously through the committee stage.

Bill read a second time.