Mid-Year Budget Review

The Hon. R.L. BROKENSHIRE (15:13): I seek leave to make a brief explanation before asking the Leader of Government Business a question regarding the dynamic Mid-Year Budget Review.

Leave granted.

The Hon. R.L. BROKENSHIRE: On Monday, we saw the greatest case of smoke and mirrors that I have seen in my 20 years here in parliament. We saw what was in real terms quite a significant loss in the budget period turned into a Clayton's, or a de facto, or a false and very misleading, profit as a result of $1.2 billion that was factored to be stolen, effectively, from MAC and the motorists of this state and put into recurrent expenditure.

As a great result of Mr Roger Cook, as chairman of the board, and the investors and executive of MAC, they now discover that they are going to receive at least $1.6 billion, and I am advised that there could be as much as $2 billion coming in to general revenue from one of the few iconic assets that South Australia did—or did until recently—own.

The Hon. K.J. Maher: You sold ETSA.

The Hon. R.L. BROKENSHIRE: ETSA was not sold, by the way. You stuffed the State Bank. Anyway, the fact of the matter is that I ask the minister these questions:

1. Does the minister agree that the truth is that this budget is in deficit and not surplus?

2. Does the minister agree that government should sell off assets that can return between $100 million and $150 million a year recurrently to go and create false, untrue budget positions for government?

3. Will the minister guarantee this chamber that, at the end of the three years after the capping ceases for CTP, motorists will not cop a hike of up to 80 per cent in CTP costs, as was the case in New South Wales with the same model?

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) (15:15): I thank the honourable member for his most important question. The short answer is, no, I don't agree at all. The Mid-Year Budget Review has generated some very important outcomes for us which I have spoken about in this place. We know that, for instance, the economic development measures were announced, which show $518 million of state-funded measures which will help drive activity.

We see that the state government is continuing to forecast a return to surplus in 2015-16 while delivering, as I said, the $518 million in economic initiatives, including, as I have already mentioned in this place today, the bringing forward of tax cuts for business to encourage investment and growth, to help grow the economy and, more importantly, to grow jobs. These build on the $985 million stimulus package of tax reforms that targeted investments in growth industries on the back of the 2015-16 state budget back in June.

Our Treasurer has indicated that the Mid-Year Budget Review meets all of the state government's fiscal targets and forecasts a $355 million surplus in 2015-16, with growing surpluses across the forward estimates. He also, as I said, has already brought forward the first third of the non-residential stamp duty and the delivery of major investments for housing and transport infrastructure to help stimulate construction. I have indicated:

the 1,000 houses built in 1,000 days over the next three years, funded from the sale of existing housing stock;

the $88 million over four years for measures such as the $20 million for the PACE copper initiative;

$19.2 million for the 'last mile' road projects to improve really important freight access;

$12 million for the new infrastructure at Tonsley;

$10 million to further support international engagement activity;

$6.4 million for critical bridge repairs; and

$6.4 million of extra funding for the Regional Development Fund.

This is a raft of measures that will help stimulate business to help grow markets and help, very importantly, grow jobs. While I am on my feet, I have the TAFE SA figures that the Hon. Mr Wade referred to. I have been informed that, since November 2012, TAFE has achieved an FTE reduction of around about 500 positions, so that is a considerable downsizing. As I said, that includes part of that period of consolidation from the three corporate entities into one—certainly the tail-end of that—and the improving of particularly administrative functions across the corporation.