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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-05-04 Daily Xml
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BUSINESS CONFIDENCE INDEX

The Hon. J.S. LEE (15:17): I seek leave to make a brief explanation before asking the Acting Leader of the Government a question about South Australia's Business Confidence Index.

Leave granted.

The Hon. J.S. LEE: On Cruise FM radio yesterday, 3 May, Business SA CEO, Peter Vaughan, stated that the Business Confidence Index is down by 3 per cent, from 96 points to 92, in the March quarter of 2011. Mr Vaughan adds that 'it's clearly tough out there, and it's looking to be tougher in the future because business confidence predictions are a great forecaster of things to come'.

Additionally, according to Business SA's March quarter report's survey of business expectations, 57 per cent of businesses indicated that the cost of overheads increased in the March quarter and 58 per cent of respondents expect the cost of overheads to rise in the June quarter. Separately, the latest MYOB Business Monitor revealed that SA business owners are among the least optimistic in the nation about the economy. The Monitor also shows that 53 per cent of SA business owners are dissatisfied with the support they receive from the state government. My questions are:

1. With the Business Confidence Index on the decline, business costs on the increase, and survey results indicating that businesses expect that South Australia's economy will perform more weakly in the next 12 months, how will the government restore business confidence in South Australia?

2. Does the government believe that increasing electricity and water costs for SA businesses in an attempt to cover the government's budget black hole is an appropriate policy to introduce when businesses and business confidence are already under severe pressure?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (15:19): I thank the honourable member for her most important questions. I will refer those questions to the relevant minister in another place and bring back a response. However, just in general terms, I would like to point out that the 2010-11 budget provided $10.7 billion in infrastructure funding, supporting 12,000 jobs this year.

Of course, we know that there were a number of projects that this infrastructure spending underpins: things like the upgrading of the major metropolitan rail lines, including the electrification of the Gawler and other lines; the South Road Superway; the duplication of the Southern Expressway; the refurbishment of the Port Bonython jetty; road and other service improvements for the Greater Edinburgh Parks; the Rural Road Safety Black Spots program; and the Greenways and Cycle Paths project—a large number of projects.

Those infrastructure projects alone, as I said, generate significant business opportunity and jobs for South Australia. So, it is those sorts of initiatives that ensure the business integrity and viability of South Australia and put us in a very good position for our future growth and development.

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