Business Confidence

The Hon. T.J. STEPHENS (15:02): My question is to the Minister for Trade, Tourism and Investment. Can the minister tell the council about how business confidence has dramatically improved under the new Marshall Liberal government, and how this will assist in creating the best possible environment for business to invest in South Australia?

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (15:02): I thank the honourable member for his question and his ongoing interest in business confidence in South Australia, something that has been sadly lacking over the last 16 years. But indeed business confidence in South Australia has now hit its highest levels in almost a decade, Business SA and Statewide Super survey of business expectations says.

The SA confidence index has hit a level of 115, reflecting a new-found faith in South Australia, and the Marshall Liberal government's ambitious agenda to grow the economy and still create jobs. Business confidence is now higher than it ever was at any time under the Weatherill Labor government. Significantly, confidence is up more than 40 per cent since the middle of 2017, in the dying days of the previous administration, where the index was sitting at just 81 points.

The business community has now embraced the new, positive, outward-looking approach of the Marshall Liberal government and is seeing a brighter future under a government that is keen to work with them, to champion their cause, to provide them with the right conditions to flourish and to compete on a world stage.

Under the previous administration, which was intent on picking winners and, even worse, picking fights, the Marshall Liberal government is intent on creating and nurturing the right environment for business to expand and invest in their futures. That is a solid foundation upon which we will build a stronger and more productive economy for all South Australians.

Encouragingly, 44.33 per cent of respondents to the survey said they expected sales revenue to increase, and that is in the full knowledge that the Marshall Liberal government plans to deregulate shop trading hours; 35.9 per cent said profitability should trend higher; and, 26.6 per cent said they expected to spend more on plant and equipment over the current June quarter.

Confidence in the economy is not only important for our local businesses and communities but for those looking to invest in South Australia, for those looking to bring their operations here to set up businesses, build new innovative industries and create some of the jobs of tomorrow. As recently as yesterday, I met with people who are intending to bring some businesses here in the funds management and private equity space. While we have been sitting here in question time, I was contacted by some companies who are currently in the United Kingdom, and South Australia has been spruiked to them by one of the senior blockchain advisers to the OECD. So, Mr President, the good news about South Australia is spreading far and wide.

Without confidence in the future, we cannot expect these companies to take the risks they need in order to establish themselves here in South Australia. They cannot be certain of the opportunities available if the local business community isn't certain about their own future. With a lower cost base for business to operate and confidence in the future, businesses will be able to face the future safe in the knowledge that the South Australian government has their best interests at heart, and wants to see them compete and succeed on the world stage.

But increasing confidence is one thing; we are now committed to ensuring that the confidence translates into real economic and social outcomes for South Australians. The Marshall Liberal government is about to lower taxes and lessen red tape, unlike the previous administration which was the exact opposite. Lower taxes and less red tape is in our DNA.

We do not believe in high taxes and big government. You cannot tax your way to prosperity. That is why growing the South Australian economy is so important to the Marshall Liberal government. We are bullish about our prospects. Our new government is intent on having an outward-looking approach to trade and investment, re-engaging with our international trading partners. Like the business community, we are confident in South Australia's future and confident that South Australia will be one of the best places for businesses to invest and to grow jobs.