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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-04-04 Daily Xml
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Question Time

SOUTH AUSTRALIAN ECONOMY

Mrs REDMOND (Heysen—Leader of the Opposition) (14:09): My question is to the Minister for Finance. Now that the head of economics at Westpac Bank, Bill Evans, the head of economics at The Age newspaper, Tim Colebatch, and the head of economics at Prescott Securities, Darryl Gobbett, have all said that South Australia is in recession, does the minister accept that South Australia is in recession? Treasurer Snelling said on 7 March, 'I don't think any economist or any sensible person is seriously going to claim that South Australia is in recession.'

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Minister for State Development) (14:10): As Minister for State Development, Madam Speaker, I think it is entirely appropriate that I take this question. Can I say, Madam Speaker, I had the pleasure of meeting Mr Evans when he was in Adelaide recently, and I must say that I thought he was very positive about South Australia's economic future, and—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: Madam Speaker, on the last occasion when this issue came up, both the Treasurer and I explained that state final demand is just one measure—one component of our economy; it just measures consumption in our economy, and it is not a measure of economic output, which is the key determinant of a recession. It is a pretty simple proposition—

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: No, what I am saying is, and I think it is absolutely important for all the community to understand this, that it is one component of our state economy that is comprised—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —of consumption and, of course, the better measure of the economic health of our state is indeed the productive effects of our economy. It doesn't measure, for instance—

Mrs Redmond interjecting:

The Hon. J.W. WEATHERILL: It doesn't measure, for instance, the whole question of our exports or, indeed, the produce which is sent interstate. So, all of the production that goes interstate and overseas is not part of the equation of state final demand. Now, I know those opposite are trying very hard to talk down South Australia's economy, but we have great confidence in it. Madam Speaker—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: Madam Speaker—

Members interjecting:

The SPEAKER: Order! The member for Hammond, order!

The Hon. J.W. WEATHERILL: Madam Speaker, we do acknowledge that there are weaknesses in certain sectors of the economy. We know that there are weaknesses in our domestic construction industries—we know that. We know that, of course, the retail sector—although, interestingly, we saw figures today that saw the South Australian retail sector I think outperforming elements of the national retail sector; but, nevertheless, they are in a relatively weak state. But to extrapolate from one component in the economy that somehow the South Australian economy is in recession—we simply don't share that view.

It ceases to pass the common-sense test, Madam Speaker. What we have in this state is an unemployment rate of 5.2 per cent—near historically low levels. That is not consistent—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: That is not consistent with a recession. We also have in the CBD, in terms of commercial construction, 13 tower cranes in the city, which has not been seen—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —for decades in this state. We know that that work will continue and be enhanced with the coming online of the new Royal Adelaide Hospital, and also the Adelaide Oval, and of course the expansion of the Olympic Dam project. But there are alternative points of view that have been expressed recently, which need to be balanced with those that the opposition cite. They, of course, choose to cite the least favourable constructions on the South Australian economy, and BIS Shrapnel—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —just today, Madam Speaker—they conveniently left this out of their recitation because it didn't suit their case, but BIS Shrapnel today released a report forecasting a doubling in civil construction activity between 2011-12 and 2014-15, which will remain elevated for several years as work progresses in stages on the Olympic Dam expansion. Now, Madam Speaker—

Members interjecting:

The SPEAKER: Order! Leader of the Opposition, you asked a question.

The Hon. J.W. WEATHERILL: Madam Speaker, can I conclude with this: they have been fond of citing various commentators; I would have thought that they would have paid more attention to what the federal shadow treasurer said on Adelaide radio just last week. He said these words:

The growth opportunities here in South Australia that I see as an outsider is, that you've got an outstanding quality of life. I think you've got excellent educational opportunities and I'd really like, personally I'd love to see South Australia become the education hub for Asia...that is something that a lot of people have talked about over the years...there's great opportunity.

I share in the views of the federal shadow treasurer, Joe Hockey—

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: —when he expresses great confidence in the South Australian economy.

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