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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-05-02 Daily Xml
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SUPPLY BILL 2013

Second Reading

Adjourned debate on second reading.

(Continued from 1 May 2013.)

Mr PENGILLY (Finniss) (15:43): I just wanted to spend a few minutes talking about the Supply Bill 2013. It is a necessity of this place that we have to go through this every year, and indeed so it should be. It is important that members, particularly on this side, make a few points in relation to their electorates. I earnestly look forward to, in 12 months time, the members on the other side sitting on this side and keeping us in enthralled for some 20 minutes and 10 minutes themselves as they whinge and whine about what may well be the first Liberal budget in a number of years, if we are successful in getting elected.

However, I digress. I would like to pick up on a few points from my electorate. One of the basics that Australians desire and expect is to have a good education and to have their education needs catered for. They also desire and expect to have a reasonable health system and to have those expectations catered for, which includes, of course, the Medicare system, but also the private health sector, depending on one's choice and where they go with that. The other thing they like to have is a roof over their head, with switches they can turn on power and turn off power with and taps they can get water out of.

It is becoming increasingly clear to me in my electorate that the cost of living is absolutely slaughtering ordinary residents and families of this state. It is a disgrace that this government needs to sit down and have a long hard look at, quite frankly. I find it demeaning that good families have to come through the doors of my office pleading for assistance with things. These families have worked long and hard, brought up children or have children at school, and they simply cannot cope with the cost of living.

What is happening now is that people, whether they live in the city or in the country, in some cases are buying candles to see at night because they cannot afford electricity, and it is your lot's fault. Do not try and turn it back on us. I remember premier Rann of blessed memory talking about electricity and how they were going to keep the costs of electricity down.

The Hon. S.W. Key: You privatised ETSA.

Mr PENGILLY: Sir, I beg protection.

The DEPUTY SPEAKER: You can handle it.

Mr PENGILLY: Sure, I can. Former premier Rann and former treasurer Foley—

Members interjecting:

Mr PENGILLY: Finally, they have recognised the member for Light's brilliance and made him a minister, and what a stuff-up he made of that today. However, once again I digress.

Members interjecting:

The DEPUTY SPEAKER: Order!

Mr PENGILLY: I find it bizarre, to say the least, that former premier Mike Rann and former treasurer Kevin Foley, who were going to do so much to bring down the cost of living for South Australians and the cost of electricity, have both been shown the door and gone but that prices are still going through the roof. Indeed, the cost of water is going through the roof, electricity is going through the roof and ordinary South Australians are suffering.

It does not surprise me in the slightest that the polls indicate the level of feeling against the current state Labor government or the federal Labor government. It is a sad indictment on these governments, on what is supposed to be a government for the people, that these things have fallen into the state they have now. It is a disgrace in what supposedly is a wealthy country that families, individuals and pensioners are all scraping the bottom of the barrel just to survive. I think it is absolutely appalling.

Let me go on further in relation to health. It is interesting that in the last day or so the state health minister has made some comments about the Patient Assistance Transport Scheme (PATS). That is a system whereby people over 100 kilometres out of Adelaide get some level of monetary reward for being able to get to Adelaide for appointments, bearing in mind that a lot of the services they need are in Adelaide. There has been no real change to the system for years. I notice that minister Snelling has said that there is going to be no increase. However, I have had lately—

The DEPUTY SPEAKER: I remind the member that the Speaker has already made it quite clear today that we do not refer—

Mr PENGILLY: Minister for Health. Sorry, sir, I apologise. It is awkward in the extreme for some country people to be able to get to Adelaide and back in one day, and I do not care whether they are in my electorate or in the electorates of the members for Flinders, Giles or wherever. The system dictates, generally speaking, that you have to travel to the city and back again in one day. People are finding that their PATS claims are being rejected simply because logistically they cannot do it.

I will give you an example: only yesterday, one person went into my electorate office in Kingscote and said that they had to be in Adelaide at 9 o'clock in the morning for an appointment, so they had to go up the night before and have overnight accommodation, which they can get at one of the hospitals, have the treatment and go back that next day. They were told that PATS would not accept that. I find that blatantly ridiculous. That is a failing of the system and something that needs looking at.

Likewise, with the fishing industry, the northern zone rock lobster fishing industry at the moment is in turmoil over the impact of these sanctuary zones within marine parks. It is interesting to note that Ferguson Fisheries, who the government like to laud about their wonderful products—and they do produce wonderful products—are looking at actually having to close their Adelaide factory because they simply will not be able to source the amount of product necessary to put through the factory. This is after they have spent probably hundreds of thousands of dollars, tens of thousands at the very least, of their own money talking up this product, marketing it overseas and getting all these markets.

In the future, they are not going to be able to produce simply because the sanctuary zones are going to lock down the prime areas for rock lobster, such as Cape du Couedic and other areas around the island and through the northern zone, including off the Fleurieu Peninsula. This is just totally ridiculous. The former minister (the member for Colton) has sailed off into the sunset and this has been picked up by another minister.

The bizarre side of this is that the government do not want to put it into place until October 2014, after the next state election. However, what they are doing at the moment is this so-called voluntary buyback system which is just total chaos. It does not involve widespread consultation: it is consultation for the select few and there are businesses that just do not want to have a bar of it. They want to walk right away from it.

I think it is a crime. What this government has perpetrated on those fishing families is absolutely criminal. It is an outrageous disgrace. If they had any courage of their convictions whatsoever at a time when Australia's economic future is in severe peril, they would rethink that strategy pretty quickly on this whole sanctuary zones debacle.

I am hoping that, once again, if we are fortunate enough to get elected to government next March, we may well be able to do something about that, however I fear for those families who have been pressured at the moment into buybacks. I might add that it will be interesting to see in the forthcoming state budget just how much money is actually allocated for these buybacks. I suggest it is probably not very much at all.

Another issue of importance to me is the law and order debate in my electorate and the provision of police resources. The police have been under a lot of pressure down on the Fleurieu, particularly during the night. The police do a great job and they try their hardest to deal with every occurrence, but the reality is that there are limited patrols out at night and, when events take place some 50 kilometres away on the other side of the Fleurieu and the police are attending to a job on the other side, it is very difficult to get there.

So, that is a fear. I have had more elderly residents, particularly in Victor Harbor, who have been concerned about their safety and security. SAPOL know my thoughts on this, but it is simply not satisfactory to continue to pour resources into the metropolitan area where the vast majority of the South Australian population live and crucify the bush with lack of police resources. I see no reason why the police should suffer stress and feel as though they are having to do far too much in the bush, just because of the dictates of the metropolitan area. It is concerning.

I am pleased, however, to comment on the addition of one extra police officer to be put on Kangaroo Island—coming from Ceduna, I understand, from the member for Flinders' electorate—to take up the slack when someone is on leave or time off or whatever. That will assist greatly over there, but the rest of my electorate—the Fleurieu part—is concerned.

I know that Mayor Graham Philp, from Victor Harbor, himself a former sergeant of police in and around Victor Harbor, has written to the minister and also to the police commissioner about his concerns and I support his concerns. His council is most worried about it. They are worried about the drug problem around Victor Harbor and the entire South Coast, for that matter. These are things that need dealing with and, of course, it goes on and on.

I do not know what is going to be delivered in the budget on 6 June. I really would not have a clue what is coming. It is something that we will wait for with bated breath on this side, I would suggest, to find out just where we are going as a state. I consider it an absolute requirement of this government to govern properly and to take hold of the reins of the finances of this state because, quite clearly, they are completely out of control. Adelaide's electricity prices rose by 25 per cent in the 12 months to September last year, the largest increase of all states.

Where is this government going to go to try and rein in its spending? As the member for Davenport and the leader have said on numerous occasions, their spending is profligate, it just goes everywhere, and they seem to have no budget controls put in place to do something about it, which is a major concern. The very fact that we are now reaching $2.2 million a day in interest for the state debt is a frightening prospect, and where is it all going to end up?

I noticed today that I received an invitation to the opening of the desalination plant. I think this is the second or third opening; I am not sure. After the amount of money that was spent down there—just bearing in mind, that it was the Liberal Party who promoted the idea of a desalination plant in the first place, and then the government came on board after former premier Rann decided it was such a good idea—the plant is now mothballed. Fortunately the drought broke, and I do not think anyone in this place would have any argument with that, but the desalination plant, for all intents and purposes, is mothballed. We are having yet another opening down there on Thursday 23 May, so heavens knows what that will be about: all bells and whistles, I guess.

I express my concerns about where the state is heading at the moment. Since the Roxby Downs expansion was canned, I think the government has gone into a state of shock. We have had a succession of job losses over the last few weeks. The Roxby Downs expansion cancellation has certainly rocked this government and, to some extent has rocked the state. However, we should not have put all our eggs in one basket.

The number of jobs that have been lost in this state in the last few weeks is frightening. They just do not seem to stop. Even yesterday we had more job losses announced at Saab and places like that, and it does not seem to be impacting on this government at all. They just do not seem to worry about it. So, with those few words, I support the Supply Bill, but I have grave reservations about where South Australia is heading financially.

Mr TRELOAR (Flinders) (15:58): I, too, rise to speak on the Supply Bill 2013 in the state's parliament, and indicate our support for the bill. My understanding is that this Supply Bill 2013 is necessary to provide $3.2 billion through until when the Appropriation Bill is brought down. It really is quite usual practice, although the amounts of money required are becoming not insignificant.

Mr Deputy Speaker, you have heard a lot from this side of the house about the dire straits of the state's economy. I have to concur with that, and I will reiterate many of their concerns and highlight a few that relate particularly to my electorate of Flinders. We are approaching the highest debt in the state's history. It is approaching that, and it is likely to exceed that debt, way back in the early 1990s, when the now infamous State Bank collapse occurred and, of course, as we know, it was a long road back from there.

We seem to be in a very similar situation right now. I am not sure what it is about Labor governments, but this is a habit they seem to have, whether it be at a state or federal level. The spending continues, the debt continues to grow, and ultimately people realise that they have had enough, that it is time for a change, and we need to resurrect this state, its economy and its fortunes. It is clear that, as a result of that, it is time for a change, that state Labor governments cannot be trusted.

We have lost our AAA credit rating. Once upon a time that was a sacred cow. It was portrayed as a sacred cow by the state's then treasurer. Unfortunately, when it came time to dispense with it, it was discarded quite quickly, and we now have a AA credit rating. What is going to happen, I wonder, when interest rates rise, as they ultimately will? They are at a relatively and historically low level at the moment. I wonder what is going to happen to the immense state debt if and when interest rates begin to rise.

At the moment, debt is increasing at around $4 million per day, every day, and it is predicted to do so for the next eight years; it is predicted to peak at around $14 billion. What this means is that South Australians—you and me, mums and dads, individuals everywhere—will be paying $2.2 million a day in interest on that debt—not a pretty picture. Unfortunately, the government has failed to identify any revenue streams whereby this debt can be paid down.

Admittedly, there has been some bad news over the last few years. The Olympic Dam expansion has been postponed, mothballed, if you like. Obviously that deposit of ore is not going to go anywhere, so it will be there for some time in the future, but it was disappointing for both BHP and the state. That is not the only bad news that has occurred. Of course, the Deepak Fertilisers plant has been cancelled, Arafura's rare earth processing plant at Whyalla has been cancelled, and the biggest blunder of all, I think, from this government was the fact that they claimed Holden's future had been secured. Given the job cuts that have occurred there over the last few months, it is unlikely that that is so.

I think that what has happened is that South Australia has become a very difficult and expensive place to do business. That has been reflected in the way businesses are viewing South Australia, in the way they are conducting themselves, and in the way they are not confident about either instigating or expanding existing businesses. A lot of these insecurities and costs are a direct result of government policy. There is no doubt about that. We are coming up to 11 years of Labor government now. It has been more than a decade, and some of these really dreadful government policies are beginning to bite.

The member for Finniss spoke just before me. He highlighted something that has not been considered so much in this debate, and that is how difficult it is for ordinary South Australians: for mums and dads, for people with families, for workers, small business operators, and those on fixed incomes who have no opportunity to really make any inroads into the growing costs they are confronted with.

Utility costs have exploded in this state, Mr Treasurer. Water bills have exploded by 249 per cent during the last decade. Electricity bills have increased by 150 per cent. We continue to have the nation's highest taxes. When you count the three main taxes—payroll tax, stamp duty, and land tax—they are the highest in this state than anywhere in Australia. They are critical inhibitors of business and the way we do business and the way families can really make headway.

The result of all this is that we are seeing full-time unemployment in the northern suburbs at 42 per cent and in the southern suburbs at 29 per cent. These are high numbers; they are not insignificant numbers, as has been indicated by the Premier at one point, but they are certainly not insignificant for those who are unemployed and looking for work, want to work and are not able to find it.

The list of government projects has been listed time and time again, often with some pride by the government. I know that yesterday the member for Mitchell listed a significant number of the state's projects and indicated the cost. Just quickly adding them up, it seems to come to about $5 billion by my reckoning. Of course, this is all borrowed money and continues to add to the growing debt.

As I indicated, I have been reiterating and reminding the house and the people of South Australia of the state of the economy generally, but I would like to talk briefly about some of the issues that relate directly back to my seat of Flinders on the Eyre Peninsula and talk about the spending priorities, as I see it, because essentially they have not changed for the decade that this government has been in power.

Much in the news this last week has been the patient assisted transport scheme and the state Treasurer has indicated that he is going to undertake a review of this reimbursement scheme. It is not before time, I must say. There has been a lot of lobbying, a lot of discussion, a lot of correspondence from this side of the house to various health ministers and treasurers over the years. Unfortunately, it has had to wait this long. Also unfortunately, the Treasurer has indicated there will be no increase in funding into the scheme which, of course, is a big part of the problem.

The PAT Scheme is a scheme that provides reimbursement for country people who have to travel to the city or to a specialist in a regional centre for specialist medical treatment, so it is absolutely imperative that country people have the opportunity and some equity in their health care and this allows for some rebate or reimbursement.

Although valued—and we are very grateful for what we do get—the per kilometre reimbursement rate sits at about 16¢ per kilometre which, of course, if you want to draw an analogy, the ATO is recommending 74¢ a kilometre for their travel for taxation purposes. The 16¢ a kilometre rate is a long way short of that.

As country people, we are reimbursed up to $30 a night for accommodation in the city. I have not had to book a room for a while, but the last time I did, I could not find anything that was anything close to $30 a night. In fact, regularly you are up around $80, $90 or $100 a night for a room in Adelaide and that is after you have spent the first night. So this continues to be an issue.

The other thing I would say is that there is barely a family in the country that probably has not used this scheme and been appreciative of it, but I would implore the government that it is time to do more and give some equity to country people in their health opportunities.

I will give credit where credit is due and I will note that the government has had significant spends on three regional hospitals that service the Eyre Peninsula: Whyalla has had a significant upgrade, as has Ceduna. I have visited the Ceduna Hospital—

The Hon. J.D. Hill: It is a beautiful hospital.

Mr TRELOAR: It is a beautiful hospital, yes, and I congratulate the government; it works well and the community is very grateful. The government is also about to spend $39 million upgrading the Port Lincoln Hospital, so we are very grateful for that. Of course, there remains the issue of the smaller country hospitals in country towns, but I will leave that discussion for another day.

An honourable member interjecting:

Mr TRELOAR: I have the opportunity to speak, member, so I will do that. The other thing that I have spoken of is the fact that the spending on the road infrastructure around the state has lagged sadly. My understanding is that there is a $200 million road funding backlog that has been identified by the RAA and the member for Kavel is suggesting that it is well beyond that now. As the member for Giles quite rightly pointed out, everybody wants their road fixed up and not everybody can have that, but a number of the highways in my electorate are badly in need of some money spent on them to make them wider, safer and more appropriate for the high loads of freight that they are now carrying.

It would seem that this government unfortunately has applied a handbrake to the state's economy. It is in a difficult situation. Debt is growing, business is slow, the retail sector is crying out for their difficulties. One of the things that they keep talking about is the regulation and red tape that they need to deal with. Once again, we can trace these directly back to government policy. Green tape is another term we are beginning to hear. As a former agricultural producer—and, in fact, I am still involved in the agricultural industry—I understand the importance of a sustainably productive landscape. My firm belief is that the best people to manage that are the landowners and the licence holders themselves. The fact is that they are so caught up in the red tape and regulations that go with their business that they cannot operate properly.

A good example of how bizarre the situation is that we have reached is that a friend of mine pointed out to me in the Port Lincoln Airport the other day that there are more people involved in security at the Port Lincoln Airport than there are in agricultural research on Eyre Peninsula. This, I think, highlights the nature of the way we do business now. I am not demeaning by any means the work of the security people at the Port Lincoln Airport but I would suggest that the risk factors there are generally quite low and, given that Eyre Peninsula provides 30 per cent of the state's grain production, then it should be given appropriate consideration.

The member for Finniss has spoken about marine parks and the voluntary buyback of lobster licences that is going on at the moment,. If I can go back to my theme of a productive landscape, I know full well that many of the sanctuary zones that have been identified and declared off the Far West Coast are actually productive fishing ground. I cannot for the life of me see the sense in this. For the fishers on the West Coast this is not about habitat protection. The habitat is intact. The fishing has been managed sustainably and many fishermen have told me that the oceans are as productive and as prolific as they have seen them at any time in the last decade in all of their career. I know the government tends to say that marine parks and sanctuary zones are not about fishing management, but the reality is that it is about fishing management because that is where the impact is going to be.

Unfortunately on the West Coast and in this state the impact will be felt greatest by the rock lobster fishermen and the abalone fishermen who really have managed very productive and profitable fisheries over the past few years. It has not been without its difficulties, challenges and rewards either, but credit must go to these fishermen who have managed in a difficult situation to harvest the ocean in a sustainable way and make a good living. As a result of the government sanctuary zones, we are now going to see a significant impact on that fishery and on individual businesses but also a significant impact on coastal communities and the flow-on effect that these industries have through jobs and families. Of course, in small towns, it impacts on schools, hospitals, the local shop and everything else. I don't think people realise just what they are doing because they are making decisions that are significantly affecting other people's lives in a detrimental way.

It has been suggested from some of those opposite that we do not have any plans or any policies. I can tell you that—and I know our leader has said this—one of our aims, one of our intentions, one of our policies will be to reduce government involvement in day-to-day life, reduce government involvement in the lives of people where it is impinging upon the way people do business and where it is impacting on the way their families operate to meet their daily commitments.

Our intention is to provide an environment where business can prosper. Rather than shutting this state down as we have done continually over this last decade, we are going to open this state up for business. We are going to make it the best place in the world, as the member for Giles said, not just to live but also to do business. I look forward to the opportunity to take part in a government that can do that.

Bill read a second time.

The Hon. A. PICCOLO (Light—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (16:15): I move:

That the house note grievances.

Debate adjourned on motion of Hon. A. Piccolo.

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