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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-15 Daily Xml
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EXPORT INDUSTRY

The Hon. J.S. LEE (15:10): I seek leave to make a brief explanation before asking the Leader of the Government a question about South Australia's export industry.

Leave granted.

The Hon. J.S. LEE: The Premier announced on Monday 30 April 2012 the closure of seven out of eight government international trade offices when South Australia recorded the worst export figures in the nation, according to ABS statistics. The ABS shows South Australia as the only state that went backwards in the past six months, falling by 13 per cent and, additionally, the latest Access Economics report predicted that South Australia's exports would drop by 9 per cent in 2012. The Labor government previously committed to a target of $25 billion worth of exports by 2012, but it has now pushed this out until 2020.

I have been contacted by a number of chambers of commerce and exporters expressing concerns about the closing down of international trade offices by the South Australian government. They believe this move will have a negative impact on export sectors, especially agriculture, food, wine, fisheries and tourism. These industries rely on demand from the rest of the world, and the lack of a South Australian government presence can affect the way their products and services are promoted internationally. My questions to the Leader of the Government are:

1. As the Minister for Agriculture, Food and Fisheries, what strategies does the minister have to ensure that export markets for agriculture, food, wine and fisheries remain strong and viable for South Australia?

2. The tourism sector is one of the most important export revenue earners for our state as well. Can the Minister for Tourism outline what export strategies the government has to maintain an international presence and attract overseas tourists into the state?

3. Also, can the Leader of the Government outline the government's alternative plans to build the export sector for South Australia?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:13): I thank the honourable member for her most important questions. As usual, what we see from members of the opposition is them grasping desperately any bit of negativity that they can in relation to this state. We see the opposition grasp any skerrick of negativity, like a drowning person grasping a lifeboat. In fact, there are many very positive economic outlooks—

The Hon. R.I. Lucas interjecting:

The PRESIDENT: Order!

The Hon. G.E. GAGO: —for this state, and I will just take this brief opportunity to refer to them. For instance, the South Australian gross state product (GSP) growth was 2.4 per cent in 2010-11. This was the third highest of the states after WA (3.5 per cent) and Victoria, and higher than the national average of 2.1, so there is a very strong gross state product. Also, a strong farm year following good growing conditions boosted grain output in 2010-11 and contributed significantly to overall GSP growth, as did the return to normal production at Olympic Dam following the accident there involving the haulage shaft.

Export incomes in South Australia were at near record highs with growth in South Australia outperforming the national average, and this is confirmed by ABS data. In the 12 months to January 2012 the value of South Australia's overseas goods exports rose by 25 per cent on the previous 12 months in original terms—the highest growth rate amongst the states—to $11.9 billion. That is confirmed by ABS data.

Private new capital expenditure is also at high levels in South Australia, growing 3.6 per cent over the year to December quarter, despite a 1 per cent decline in the December quarter. BHP Billiton indenture legislation passed through parliament in November last year, and BHP Billiton has indicated that it may spend around $525 million of its approved precommitment capital in South Australia over the next six months, providing a further boost to these high levels.

The Olympic Dam expansion will provide a high boost to the state's economy by creating significant direct and indirect employment opportunities, as well as creating business opportunities for suppliers, contractors and manufacturers. The state government's investment in critical infrastructure and transport projects has also boosted the construction sector—for example, investment in the new Royal Adelaide, the Adelaide Oval redevelopment, electrification of the rail network and the South Road Superway project.

There is $109 billion worth of major development projects underway or in the pipeline in South Australia. In trend terms, South Australian employment growth through the year to February 2012 was 0.5 per cent, or 4,100 additional jobs. Just because there is background noise, I do want to make sure Hansard gets this: since 2002—that is, when the previous Liberal government was in power—

Members interjecting:

The PRESIDENT: Order!

The Hon. G.E. GAGO: —employment in South Australia has grown by 129,500 in trend terms. As you can see, Mr President, there is plenty of good news there. It is most important that we as members of parliament talk up this state. It is critical that we talk up this state, that we show a level of confidence and assurance in our state and that we are able to profile the achievements and the benefits for people to move here, live here, work here, and invest here. That is what is in the interest of this state, not the whingeing, whining and carping that we see and the putting down. At any opportunity, we see the opposition try to put this state down and put it in the worst possible light. They should be ashamed of themselves.

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