Address in Reply

Address in Reply

Adjourned debate on motion for adoption.

(Continued from 8 May 2018.)

The Hon. D.G.E. HOOD (15:22): I rise to support this motion and express my appreciation of the speech with which the Governor opened this parliament just last week. I thank both the Governor and Ms Le for their extensive work over the past four years on behalf of and for South Australians, and I commend their resolve to always act in the best interests of our state and its citizens.

I take this opportunity to wish them well as they continue in their very important and esteemed roles, and trust that our new parliament will endeavour to work and support their objectives to improve and advance the welfare of our state. I also acknowledge the Governor's attendance at the opening service to mark the beginning of the parliamentary year, hosted by the Parliamentary Christian Fellowship this morning at St Peter's Cathedral. Since the Governor's appointment in 2014, to the best of my knowledge, it is an annual event that he has not missed, and I commend him for it.

Sir, I also take the opportunity to congratulate you on your appointment as President of this place, and also to acknowledge the work of your predecessor, the Hon. Russell Wortley. I have no doubt that you, too, will fulfil the duties of your position with aplomb. It is not very often that one gets to use the word 'aplomb', so I thought I would take the opportunity.

I also join the Governor in welcoming the 19 new members to the Fifty-Fourth Parliament, particularly our colleagues in this place: the Hon. Connie Bonaros, the Hon. Emily Bourke, the Hon. Frank Pangallo, the Hon. Irene Pnevmatikos—close?

The Hon. I. Pnevmatikos: That'll do.

The Hon. D.G.E. HOOD: That will do, thank you—and the Hon. Clare Scriven—I look forward to getting that right as time goes on—with whom I look forward to developing and enjoying good working relationships in the coming years.

I also acknowledge the contribution of members who were not re-elected, speaking specifically of the former member, the Hon. Kelly Vincent, the youngest woman ever to be elected to an Australian parliament, as I understand it. It would be remiss of me not to again take the opportunity to acknowledge the Hon. Robert Brokenshire, my close friend and colleague, with whom I had the privilege of working closely for just over a decade and who made a significant impact, in my estimation, to South Australian politics throughout his 22-year career in this parliament in both this and the other place.

Of course, I have already had the opportunity to speak at length about Robert's impressive achievements, which I outlined last week, but I want to make sure that I again take an opportunity to commend him for his contribution.

As evidenced by the result of the March election, there has been an indisputable desire for change within the South Australian community, resulting in the election of a new government. The health of our economy, the future and wellbeing of our children, the state of our essential services and opportunities for the next generation all depend upon an innovative long-term plan for our state. The Marshall Liberal team presented its plan to voters previous to the election and was subsequently elected. Following its election to government just over six weeks ago, it has already made progress towards delivering many aspects of the promises made prior to the election, as the Governor aptly indicated in his speech last week.

I would now like to take the opportunity to touch on some of those key policy initiatives which I have personally and publicly advocated for at some stage since my own election to this place some 12 years ago. I should point out that in doing so, I am only choosing to highlight those policy matters that I have personally advocated for prior to joining the Liberal Party. Each of these are policy positions that I am on the record as having supported in one form or another prior to their being adopted by the new government, and I commend them for it.

As most members well know, I have been a strong supporter of reducing what I would deem as unnecessary taxation. As a privileged member of this government, I am proud that the government is demonstrating leadership in revitalising our economy through implementing a number of measures that will directly, or at the very least indirectly, benefit every South Australian business enterprise and household. This is a very significant step in the right direction.

In an effort to decrease the unemployment rate, this government recognises the need to address the barriers to the creation of job opportunities that we have experienced under previous governments. South Australia has imposed payroll tax upon businesses with payrolls of just $600,000 or greater, the lowest in the nation, effectively meaning small to medium-sized businesses, which should be given the most incentive to prosper, have experienced the most strain and difficulty and faced the highest cost burdens under the previous government system.

By relying on this stream of revenue for over a quarter of its income tax revenue, the previous state government has arguably perpetually prevented our state from reaching its economic potential. Fewer jobs inevitably leads to a greater reliance on government handouts and less money being injected back into the local economy. I am a big believer in a hand up. There is certainly a place for a handout on occasions, but people benefit the most from a hand up. Excessive payroll rate tax has been a deterrent for business owners to expand their operations and has undoubtedly made entrepreneurs think twice about whether this encumbrance—which is not contingent upon profitability, I should point out—has been worth the risk of undertaking a new venture in South Australia at all. I have no doubt that this has been a noose around our neck.

Our state government has needed to focus on creating an opportunity for existing businesses to thrive and to which start-ups are attracted. I am very pleased that it is one of the Marshall Liberal government strategies to achieve this, and that it will in fact remove payroll tax for small businesses with payrolls of between $600,000 and $1.5 million as of January next year. This welcome measure will contribute significantly to the growth and success of business enterprise in almost every industry.

In my discussions as I have moved around the community as a member of this place over the last 12 years, one of the most consistent issues that has been raised with me (and I am sure other members would agree) by business people, particularly small and medium-sized business people, is the noose around their neck, as they call it, that is payroll tax. It is a direct disincentive to employing people. Although it has significantly improved in recent times, for a very long time this state has struggled with the highest unemployment rate in the nation, and we also had the lowest threshold at which payroll tax applied. Our efforts to increase the level of employment were hampered by the fact that we imposed the greatest costs on those businesses wishing to employ people.

This is an obvious contradiction and a clear hampering of economic advancement in our state. It makes it more expensive for business to employ people unnecessarily. The thing about people getting jobs is that a job for somebody creates dignity. It creates an opportunity for them to pull themselves out of difficult situations, to provide for their families, and to create a sense of self worth which is ultimately, I think, the real value in employment. Why on earth would we make it difficult for small and medium businesses to employ people and make it expensive for them to do so? It works against our state interest and has served us very badly, in my estimation.

The new threshold of $1.5 million represents an almost tripling of the previous threshold and there will be very many businesses that will benefit from that. As I have just outlined, my experience in moving around the state for the past 12 years as a member of this place in discussing this issue with businesses is that it is their most disliked form of taxation because it is a direct impediment to them employing more people.

In contrast to the former Labor government, this Liberal government will not be depending on ever-increasing taxes and new levies to counter incessant overspending. In addition to its reform of the payroll tax system, this government is improving our land tax regime to stop penalising current investors, many of whom have modest property portfolios with a view to becoming self-funded retirees, as well as to incentivise new investors and developers.

Our housing and construction industry is absolutely vital to the South Australian economy and will welcome this long overdue change to the system. Something that has been noted, again during my 12 years in this place, is that our property taxes have been substantially out of line with those in other states in Australia. Indeed, it is not uncommon for a property investor in South Australia to purchase a home here but then, if they are in the fortunate position of being able to purchase another investment property, to do so interstate so that the combined value of their properties here does not exceed the threshold at which the land tax in particular increases very substantially.

I personally know dozens of people who, although they would like to invest in more property in South Australia, whether it be commercial or residential, have found themselves in a position of not being able to do so because of the punishing land tax regime that they would be facing for doing so.

This change will be a real boon to our housing and commercial construction industries. It will no doubt be the start of what I expect to be a very substantial increase in construction levels in our state. I can tell you from personal experience and discussions with those directly affected by this measure that they see it as a significant opportunity to increase their investment here in our state, something I am sure all of us would agree will be a terrific thing for South Australia for employment.

Of course, governments win from that as well. How do they do that? Because the greater the level of employment, the greater the level of investment, which also means the greater level of taxation revenue for the government of the day. Activity creates wealth creates taxation, and this is exactly, in simple terms, one of the measures that this government will adopt, which I must say I wholeheartedly endorse.

In addition to this, our emergency services levy is also not exempt from the reforms that this government will implement but in fact will be cut by some $90 million per annum on all eligible fixed properties regardless of their type of land use, providing relief to households, businesses, farmers and community organisations. This is yet another tax impost that is simply a handbrake on our economy. The emergency services levy has continued to increase over the years. As we know, it had a very substantial increase under the previous government about—I am not quite sure—maybe two or three years ago, something in that order, in the last term of the parliament anyway, and it became a very substantial figure.

This government will wind that back, reintroducing the remissions so that it is wound back to the previous levels, which will make the taxation much more acceptable to the community. Again, high levels of taxation are a disincentive for business. They are a disincentive for individuals as well to acquire property and use it for productive purposes. All of this taxation has simply been a handbrake on our South Australian economy. We have seen the fruit of that, as I said, until very recently, with the state of South Australia consistently having the highest level of unemployment, which included Tasmania for a substantial amount of time. When one considers that, I think it really is an embarrassment for our state.

Not that long ago, in the seventies and early eighties, South Australia was always regarded as the third economy in Australia, the third most advanced state. We have since fallen down that ladder very substantially, as members know and would agree, and we are now in a position where we must rebuild. We must remove the high levels of taxation which act as a handbrake to our economy and provide the opportunity for individuals and businesses to restructure their situations and invest in our state to the benefit of all.

Further, the natural resources management levy scheme, which has been an additional burden to South Australians, will also be transformed under this government with the introduction of caps to yearly land and water levy increases. Transparency in how these particular funds are spent will also be a priority—just another example of the lower tax regime that will exist under the Marshall Liberal government.

All these things, when you add them up, create an environment that is more conducive to business, that will be attractive to capital, that will create employment and will find a situation, I believe, where our state will benefit substantially. We have already seen, in some of the economic press in recent times, that some of the economic think tanks have been speaking very positively of the future of South Australia. These measures will undoubtedly further enhance their opinion of the prospects for our great state.

As you would be aware, I fought hard to ensure that the former Labor government did not proceed with what I saw as a flawed bank tax proposal. I believe it would only have served as a further impediment to the growth of our economy, with the extraordinary $370 million cost over the forward estimates being passed on to families and businesses who could least afford yet another tax impost. I am very thankful for and fully support the Marshall government's decision to not continue with this tax in government.

I noted in the budget paper just a moment ago that the projection for the 2017-18 budget was $97 million in revenue from the bank tax—which, of course, will not be implemented—rising to some $95 million per annum in the 2020-21 financial year. That is $100 million to be taken out of the economy and, the reality is, what would the banks do? They would do what any other organisation would do and pass that tax directly onto the consumers. It is effectively another tax on households and businesses in our state, which our state can little afford.

As part of the sweeping reforms in taxation and many other areas that this Marshall government will be involved in, in both the public and private sectors, to help stimulate our economy and make South Australia a vibrant and attractive place in which to work, live and invest, this government will also deregulate shop trading hours, trial a new temporary visa for entrepreneurs and create a regional growth fund to provide more opportunities in rural South Australia. I have also been a strong advocate in this place, as people would know (you may have heard me in the media or elsewhere), for council rate capping, another Marshall government priority which I support.

The government will be establishing this through the administration of an independent regulator—an appropriate way to do so, in my view. This local government rate capping scheme will ensure councils do not raise their rates beyond what the regulator has determined as reasonable for each particular area. I do not accept the argument that councils would not be in a position to fulfil their most basic functions if rate capping were implemented. I have always been of the firm opinion that they should focus on providing what most ratepayers primarily expect of them, which is quality road maintenance and efficient rubbish collection. They are the primary tasks that the individual, as I would see it, would require of a council.

There are other things that councils legitimately do and I do not dispute that, but these, of course, are the primary tasks expected of them. Indeed, I believe councils should refrain from becoming involved in issues beyond the scope of their core business, including debates concerning whether Australia Day should be celebrated. That is a legitimate debate, but it is not a debate for local government. Just on that matter, I am also pleased that it is our government's intention to legislate for 26 January to continue being recognised as Australia Day. Not only is it this government's view, it is also my personal view. It is indeed an important tradition, in my view, that recognises the values upon which our society was founded and which have served to prosper our nation for generations.

Members in this place would be very familiar with my firm opinions on the Safe Schools program, which has existed for some time now, which I consider to be essentially a social engineering program under the guise of an antibullying measure. I have been very active in representing the views of many parents and teachers throughout South Australia who were uncomfortable with the program's content, which exposes children as young as 11 to various gender fluidity theories. Having seen many of the teaching tools associated with the program, I was surprised at what some schools were being asked to teach and the activities students were to undertake. Indeed, a number of teachers contacted me saying they felt unable to teach in accordance with what they were being asked to teach.

Although I agree that our schools should be responsible for cultivating a safe and secure environment for all students, Safe Schools, in my view, did not address any bullying unrelated to sexuality or gender confusion whatsoever. What value is an antibullying program that focuses on a small part of the community but ignores the overwhelming majority? We should focus on the whole community. I am pleased that the Marshall Liberal government is ceasing funding for this program and replacing it with a comprehensive package of measures to combat this problem within our schools, including development of new resources for teachers to address all forms of bullying to all those affected.

Of course, I also look forward to being involved in the introduction of legislation to make it easier for those responsible for bullying to be prosecuted. That will no doubt act as a deterrent for this unacceptable behaviour. I was encouraged that the private members' bill I introduced last year—members will recall it being referred to colloquially as 'Libby's law'—in seeking to achieve passage through the parliament, did actually receive passage in this place and, I understand, was likely to pass in the other place had there been sufficient time. The government is adopting legislation that will be similar if not identical to that, as I understand.

Another bill I introduced, which received passage in this place prior to the proroguing of parliament, sought to grant the Independent Commissioner Against Corruption the ability to hold open hearings in cases of maladministration and misconduct. This government has made it known publicly that it intends to introduce similar legislation—the Attorney-General has introduced that legislation in the other place today, I think—in order to allow cases dealing with maladministration and misconduct to be heard in public. I support this move. This is a further example of the Marshall Liberal government's commitment to transparency and openness. I am sure South Australians would agree that this is imperative in managing public integrity and confidence in our institutions in South Australia.

I am genuinely excited to be part of a government that has a comprehensive and systematic plan for achieving its compelling vision for South Australia. I am optimistic and confident that the Marshall Liberal government has the skill, capability and fortitude to succeed in implementing the policies upon which it was selected for the benefit of all South Australians.

I am particularly enthusiastic about the government's focus on the lowering of the tax burden to business and to households in South Australia. For too long, we have faced high levels of taxation in this state, which have been a burden to growth, which have been a challenge for our state to overcome. Finally, we find ourselves in a situation where much of that burden will be relieved. There is more work to do but this is a very good start, in my view.

With this contribution, I wish to join with honourable members in assuring His Excellency of our commitment to conduct all elements of our duties as elected representatives of our state and its people to the best of our abilities. I support the motion.

The Hon. T.J. STEPHENS (15:43): I rise to support the motion and give thanks to His Excellency the Governor for his speech opening the Fifty-Fourth Parliament of South Australia. His Excellency has provided four outstanding years of service to the people of South Australia. I would like to express my gratitude to the Governor and Mrs Le for their dedication, generosity and hard work. They have done this state proud with their selfless service, opening their hearts to all South Australians, championing cultural diversity, education and economic opportunity, and tirelessly supporting many worthy organisations.

Sir, I offer my congratulations to you as the new President. I am sure that, as President, you will maintain the dignity and decorum of the chamber. I sincerely thank the people of South Australia for re-electing myself and my Liberal colleagues the Hon. David Ridgway, the Hon. Stephen Wade and the Hon. Jing Lee. It is, of course, an incredible honour, and I look forward to my work as the Government Whip in the Legislative Council as well as continuing my service on a number of committees.

I would also like to take the opportunity to congratulate and welcome the five new members to this chamber: the Hon. Emily Bourke, the Hon. Irene Pnevmatikos, the Hon. Clare Scriven, the Hon. Connie Bonaros and the Hon. Frank Pangallo. The extensive experience and enthusiasm of these members will no doubt greatly contribute to the spirited debates we have in this place. I will not go through their names, but I also congratulate all the new lower house MPs on both sides and look forward to hearing their maiden speeches. I also wish to acknowledge the service of two former members of this chamber, the Hon. Robert Brokenshire and the Hon. Kelly Vincent. Both were diligent members who stood up for their beliefs with integrity, and I know that their contributions have had a lasting impact on this state.

The Governor, in his opening speech, outlined the newly elected government's agenda for positive, enduring legislative reform in this state. It is a shame that the former premier did not bother to show up to hear it, as I believe His Excellency outlined a more detailed and comprehensive plan for reform than any government we have seen in recent years. I was pleased to hear from the Governor's speech that the number of new members reflects a desire for change and renewal expressed by the people of South Australia.

As those in this chamber know, I stand here as a strong advocate for Liberal values. I believe that this government will fight to advance the prosperity of our state so that we can all enjoy the highest possible standard of living with efficient, quality services in health and education and a fair and transparent justice system. The Liberal government's agenda includes vitally important protections for the most vulnerable in our society and ensures that everyone has an equal opportunity to succeed.

The government has planned for economic growth; however, on this side of the chamber we understand that constant government interventions in the economy do not create jobs and prosperity. Government subsidies and grants for business, which we have become familiar with under the previous government, do not provide long-term sustainability. We must do everything we can to create the best environment for business to thrive in South Australia.

His Excellency the Governor referred to the strong policy commitments made by the Liberal Party prior to the election, which were endorsed by the South Australian voters. The Governor highlighted our commitment to foster economic growth and job creation, make businesses more competitive, create more training opportunities and reduce the cost of living for all South Australians. The people of South Australia clearly want change.

They placed their trust in a majority Marshall Liberal government, which will work hard to deliver on every one of the policy commitments made prior to the election. As noted by the Governor, the government has already given instructions to government departments to pay bills on time, has begun preparing legislation for the reduction of payroll tax, and has initiated the procedure to implement $90 million worth of ESL bill relief.

South Australia has enormous potential for economic growth. We can be nationally and internationally competitive in several key industries if we commit to reducing costs for business. We must ensure that our economy provides a capability for well-paid, highly skilled work. Economic growth is driven through the private sector, and the policies articulated by the Liberal Party will best support this. Our commitment to increase the tax-free threshold and reduce the top marginal rate for land tax is one example of a policy that will encourage investment.

While there was some temporary payroll relief provided by the former government, it was not nearly enough. The business sector in this state is struggling. Under the previous Labor government we saw increased red tape, fees and restrictive regulations for business. We need to be cutting payroll tax, and I am very pleased that the Leader of the Opposition in the other place supports our commitment on this issue, recognising that payroll tax is a tax on jobs. Perhaps he learnt something while he was in this chamber.

The reality is that the burden on business must be relieved to allow them the opportunity to grow and employ South Australians. Small and medium-sized businesses are the largest employer in our state and we need to support those individuals who make the decision to start their own business.

Under Labor, we saw a hostile business environment. As a result, the rate of business creation plummeted. The Liberal Party understands that, to generate growth and jobs in the small and medium business sector, the government must fix the fundamentals and leave the rest up to the private sector. Under Labor, business found it too difficult to meet the costs of higher taxes and fees. We must restore business confidence by supporting jobs and investment.

The Marshall Liberal government will reduce red tape and keep business costs as low as possible. Through this, we can make it easier and more cost-effective for the private sector to begin new ventures, grow business and, most importantly, employ more people. Critical to creating this environment will be supporting young entrepreneurs and fuelling innovation, as well as strengthening the technical skills industry through more apprenticeships and traineeships.

It is a shame that for 16 years under the previous Labor government so much was promised, yet so little delivered. When the previous government needed to stand tall in matters such as mental health and aged care, it failed our most vulnerable citizens abysmally. Our government is listening and taking action. The Marshall Liberal government has appointed a new Chief Psychiatrist to implement a new clinical plan for state-funded mental health services across the state, as well as address the recommendations of the maladministration investigation into Oakden.

We have been handed the Labor government's legacy of a bloated bureaucracy, red tape and taxes, with failed economic, employment and educational outcomes. This government will implement an agenda to retain our bright young minds and attract talented professionals from interstate and overseas. Our state's economy simply cannot thrive when so many of our young graduates are leaving. Encouraging job creation will allow every young person in South Australia to have the same opportunity to achieve their ambitions and this comes from resetting the fundamentals to allow business the best chance to flourish.

The Governor notes that private business should not look to taxpayers for financial support before making investment and growth decisions, because my government does not intend to be a bank or part of private sector business decisions. History has proven to us that government and society interact most effectively when the size and impact of government is restricted and free enterprise is encouraged.

For too long, economic growth has been curbed by government mismanagement through excessive red tape and interference with private enterprise. Often when we grow the size of government bureaucracy, it is at the expense of growing our economy. A small and efficient government encourages growth. This government will seek to restrain debt by focusing on efficient, smarter spending. We saw, with the shameful experiences of Oakden, how a bigger government did not result in better outcomes.

In South Australia, industries such as food and wine, education, health, financial services, tourism and technology are growing and provide us with the opportunity to increase our exports to other states and countries. This is why the Marshall Liberal government has introduced a number of policies focused on supporting business owners to increase their exports. It will make a welcome change from the previous government, which had very little ambition to improve our export performance.

I look forward to a renewed focus on the regions under this new Marshall Liberal government. The regions are the economic powerhouse of this state. The government recognises that our regions must be supported with efficient infrastructure to grow their contribution to the South Australian economy. We will be held to account on our policy commitments to regional South Australia, including regional development and primary industries, and I know that my colleagues in both houses look forward to implementing them.

The regional roads and infrastructure fund will provide certainty to our struggling regional areas, and the regional growth fund will see more money directed to the regions over the next 10 years than under the entire 16 years of the previous government.

It is a pleasure to be part of the Marshall Liberal government—a liberal reformist government—which, with its focus on growing the economy, creating jobs and keeping young people in South Australia, will revitalise our state. Now is the time for our bold plan for reform to be implemented. There is so much opportunity in South Australia that has not been realised by the previous government over its 16 years. This government will modernise and grow our economy to realise these opportunities.

All members of this chamber brought their own mandate to the election and I am sure that, at times, those interests will bring us into conflict; however, I look forward to collaborating with members opposite to reach a consensus that effectively serves the interests of the state. We all want the best for South Australia. I am sure that we can all work together to achieve this.

As the Governor notes, the government is ultimately accountable for its actions through this parliament to the people of South Australia. I am sure that members opposite will work hard to hold this government to account. This Marshall Liberal government has a comprehensive program for reform. I look forward to those promises being brought forward to this house in the coming term.

Premier Steven Marshall and cabinet, whom I congratulate on their appointment, will provide strong leadership for this state. As always, my Liberal colleagues and I will work diligently in this house on behalf of the people of South Australia. I am confident that we will bring about beneficial change for all South Australians. I commend the motion to the chamber.

Debate adjourned on motion of Hon. I.K. Hunter.

At 15:56 the council adjourned until Tuesday 15 May 2018 at 14:15.