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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2019-07-03 Daily Xml
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Regional Economy

Mr McBRIDE (MacKillop) (12:52): I move:

That this house—

(a) recognises the economic contribution to South Australia from our regions is now in excess of $25 billion per year; and,

(b) acknowledges the endeavours of the state government towards growing the regional South Australian economy.

As a regional member, I am grateful to the people of South Australia for electing the Marshall Liberal government on a platform of 'regions matter'. Our constituents have recognised that our government is one that values our regions, and our government has recognised that regional communities are the backbone of our economy.

I am grateful that gone is the Adelaide and metro-centric approach of the previous government that did not recognise anyone beyond the toll gate, an approach that sadly dogged our state during the 16 years of the former Labor government and notably, unfortunately, resulted in the decline in our roads, the neglect of our regional health care and the deterioration of our schools and other facilities. Despite this neglect, we are fortunate to have communities, businesses and sectors in our regions that have had the drive, tenacity, business acumen and persistence to deliver strong economic outcomes for their regions and the state.

Our regions are important to the state. They are making significant contributions to the state's gross regional product, totalling more than $25 billion. Agriculture, forestry and fishing are key areas of contribution. I have spoken previously in this house on several occasions of the great contribution of our regions. The grain sector in South Australia is a key contributor to gross domestic product for regions. PIRSA reports that in 2017-18 the South Australian field crop industry contributed $4.2 billion, or 28 per cent, of South Australia's primary industries and agribusiness revenue.

Significant regional contributors to this value include areas cropped in Eyre Peninsula, Yorke Peninsula, Mid North, Murray Mallee and the South-East. The contribution of this industry is testament to the endeavours of our grain growers embracing technology and managing risks that enable this sector to deliver. PIRSA reports that over 11 million sheep, 950,000 head of cattle and 57 million kilograms of wool are produced annually in the state. The state's red meat and wool sector generates $2.4 billion each year in production and processing revenue and $1.5 billion in exports. It also supports 30,000 jobs.

Our regions are celebrated internationally and nationally as producing high-quality wines. The value-adding that takes place in South Australia's regions is also well known. For 18 wine regions across South Australia, Vinehealth Australia reports that in the 2018 vintage alone the estimated value of the total grape crush for all regions was more than $589 million. While the wine industry is the highest single export sector and generates $2.35 billion to the economy and employs more than 8,400 people, the value-add to the wine and grape product is significant and a result of the local winemaking that occurs across our regions, including the Barossa, Adelaide Hills, McLaren Vale, Fleurieu, Limestone Coast, Clare and the Riverland, to name a few.

South Australia's clean and green status has it well placed for a thriving horticulture industry which, according to PIRSA, in 2017-18 contributed $1.6 billion to South Australia's economy. The production of pears, apples, cherries and strawberries is the hallmark of horticulture in the Adelaide Hills, while the Riverland is a key area for the production of citrus, stone fruit and almonds.

The Limestone Coast is known for its production of vegetable seeds and, together with the Mallee, is a key area for the production of potatoes and onions. Closer to Adelaide, the Northern Adelaide Plains are intensively farmed to produce outstanding fresh vegetables. PIRSA reports that tomatoes, potatoes, almonds and citrus are the largest of a vast range of the vegetable, fruit and nuts crops grown in South Australia.

Our regions are also an important base from which a great many of our fishery sectors operate. ABARES reports that the value of fisheries and agriculture production across South Australia, which includes a significant contribution from regional ports, for 2016-17 totalled more than $483 million, with seafood exports from South Australia totalling $242 million over the same period. Significant contributors to this export value included the tuna, rock lobster and abalone fisheries.

The plantation forestry industry and its value chain, including growers, forest managers, processors, harvesters and biomass users, are key agricultural and agribusiness sectors for our state. A 2017 report funded by Forest and Wood Products Australia identified that the direct value of forestry output generated from the Green Triangle in South Australia in 2015-16, which includes my electorate of MacKillop and the adjacent electorate of Mount Gambier, was $1.909 billion, including flow-on effects generated in other industries as a result of spending in the forestry industry. A large portion of this value, $1.273 billion, was generated on the South Australian side of the border, with another $104 million generated through cross-border activity. Be in no doubt that this is an important sector for our state.

Regionally based mining and gas production are important for South Australia and account for more than 35 per cent of South Australia's export of traded goods. The sectors are strong contributors to gross domestic product, with mining across the regions of the state contributing more than $1.4 billion for the state. The Far North of our state continues to provide a key strong economic contribution to the state, with the value of mining being a key economic driver in those regions.

While the agriculture, fishing, forestry and mining sectors are significant generators of value for our state, there is also significant contribution from a range of other industries. Household services, which include accommodation and food services, education and training, health care and social assistance services, are significant contributors to gross domestic product across all regions.

Also significant and consistently high-value contributors across all regions are business services. These are the businesses in our regional towns and cities that enable us to work, live and go about our daily lives. These businesses include financial and insurance services, rental and real estate agencies, professional services such as lawyers, conveyancers and scientific and technical services. The combined value that these sectors add to the gross domestic product across all regions is more than $4.9 billion.

The Marshall Liberal government recognises the importance of regions to South Australia. Our government has placed an emphasis on ensuring that settings including planning, policy, skills and funding are in place to grow the regional economy of South Australia. Ensuring that we develop and sustain strong local economies is a priority. I seek leave to continue my remarks.

Leave granted; debate adjourned.

Sitting suspended from12:59 to 14:00.

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