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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-03-04 Daily Xml
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Question Time

SOUTH AUSTRALIAN ECONOMY

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:08): My question is to the Premier. As the Minister for Economic Development, has the Premier sought briefings on the decline in business investment in South Australia, and what factors has he identified for the collapse in confidence? National accounts figures released today show that South Australia's biggest investment has slumped in the December quarter by a negative 13.9 per cent, the worst of all states. New South Wales was second worst, with a decline of just 1.5 per cent. They also show that South Australia exhibited the second slowest growth of all states in the year since the December quarter of 2007. Business investment levels across all Australian states increased by 1.1 per cent, with New South Wales, Tasmania and SA the only states in decline.

A recent report by the Fraser Institute noted that South Australia had dropped well down in its place in the world for best mining potential, with Western Australia jumping from 27th place to seventh, making it the most attractive region for mining in Australia.

Ms Chapman: Good old Fraser Institute.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:10): Let's remember the Fraser Institute was derided and ridiculed by the Deputy Leader of the Opposition when the argument did not suit her. Now she claims it as her own when she thinks the argument suits her cause. We are experiencing the worst financial crisis that this nation has arguably ever seen. I was accused by members opposite—

An honourable member interjecting:

The Hon. K.O. FOLEY: I will get to that. I was accused by members opposite of being alarmist, of being a doomsayer, of talking down the economy, of scaring people by putting my views on the public record six months ago, eight months ago, because, having been fortunate to be meeting with people in both America and the United Kingdom, I could see what is heading our way. An opposition can do one of two things. During this very difficult time in our economy either it can be constructive and robust—and that does not mean governments should be beyond criticism, not at all, but an opposition should be prepared to accept and acknowledge that this is a crisis beyond any state government's or any national government's control and it requires substance and a constructive approach from an opposition—or it can take the shameful political approach and simply criticise, attack and knock.

What I can say is this: the quarterly state final demand figure is disappointing, but we have an economy that is measured through the course of a financial year or through a 12 month rolling average. Can I say that South Australia's annual state final demand growth to date is positive 3.6 per cent against a national average of positive 2.6 per cent. So, when you take the full quarter, the rolling average, we are a percentage point above the national average, and I think that is a pretty good outcome.

Have we had some drop in business investment this quarter—yes. Have we had some negative outcomes—yes. However, an economy is not measured over three months: an economy is measured, at the very least, over a 12 month period, and for the 12 months this state has been travelling very well. However, I will finish on this point. Make no mistake about it—

Ms Chapman: Are you going to answer the question?

The SPEAKER: Order!

The Hon. K.O. FOLEY: Make no mistake about it, I speak to business every single day of my working life—

Ms Chapman: Have you had briefings?

The Hon. K.O. FOLEY: Briefings from business—I talk to businesses every day, unlike the deputy leader who clearly does not. I talk to business every day. We have an Economic Development Board that gives us advice. We have as good a body of economic and business advice available to any state government, but—

Ms Chapman: Kevin the ostrich, head in the sand.

The SPEAKER: Order! The Deputy Leader of the Opposition will come to order!

The Hon. P.F. Conlon: So amusing, aren't you? Three and a half years and you haven't said a witty thing.

The Hon. K.O. FOLEY: I wouldn't mind it if there was a bit of humour in it, something funny in it.

Members interjecting:

The SPEAKER: Order! The Treasurer has the call.

The Hon. K.O. FOLEY: Sir, I really would appreciate some assistance in dealing with the Deputy Leader of the Opposition, because it makes it very difficult to answer questions when she just chips away the entire question time. The economy in South Australia has to brace itself for a serious economic slowdown over which we have no control. We have done a number of things to make this economy as resilient as we can.

I have been Treasurer of a very good government for seven years. Am I concerned about the future? Absolutely. Do I think we can manage the process and the crisis? Yes, I do, but it will not be without pain. As I said at the outset of this question, you can do one of two things: you can be constructive, robust and critical where appropriate, or you can play base politics and make this a much harder job than it otherwise needs to be.

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