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Legislative Council - Fifty-Third Parliament, First Session (53-1)
2014-07-02 Daily Xml
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Unemployment Figures

The Hon. J.S. LEE (14:54): I seek leave to make a brief explanation before asking the Minister for Employment, Higher Education and Skills a question about the state's unemployment.

Leave granted.

The Hon. J.S. LEE: South Australia has the highest unemployment rate on the mainland after a disastrous jump in the unemployment rate from 6.2 per cent to 6.8 per cent, with the loss of 4,500 jobs in May. Since the last budget, almost 20,000 jobs have disappeared from South Australia. In particular, the unemployment rate in the Mid North of South Australia is now dangerously high at 9.6 per cent, having been 5.8 per cent only 12 months ago. Equally concerning is the youth unemployment rate which has leapt from 11.4 per cent to 16.9 per cent. Since the Labor government promised 100,000 new jobs in 2010, South Australia has actually 800 fewer jobs and an extra 18,000 unemployed. My questions to the minister are:

1. Does the government stand by the promise it made in the lead-up to the 2010 election that it would create 100,000 new jobs by February 2016?

2. Can the minister advise why the government has led regional unemployment figures to a dangerous level of 9.6 per cent?

3. What measures does the minister have in place to address the skyrocketing youth unemployment rate which is now at 16.9 per cent?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:56): I thank the honourable member for her most important question. Indeed, South Australia does face significant challenges and they reflect in our employment capacities. We have seen South Australia be confronted by a drop in GST revenue and the after-effects of a global financial crisis. We have seen Holden's announcement to cease its operations. We are the oldest population on the mainland and as people reach retirement age we need to ensure obviously that we replace those skills. We have also got an economy that is heavily reliant on a traditional manufacturing sector and we know that that has and continues to face very tough times. All these things are placing a strain on our economy.

However, the resilience of our economy will improve as we continue to roll out our plan, our strategies, to diversify our economy, advanced manufacturing, premium food and wine from a clean environment, and exploration of new mining and energy resources. We have seen exports reach record levels. More than $12.3 billion in the 12 months to April 2014. Year on year growth in South Australia at 14 per cent was the highest across Australia. We do not hear the Liberal opposition talking about those figures.

In terms of nominal trend retail turnover, there has been a very positive growth in the past 13 months. In value terms trend nominal retail turnover remains close to record levels of $1.49 billion. We have seen new dwelling approvals up 23 per cent through the 12 months to April 2014, the second highest in the nation. This compares to a national growth of 15 per cent so, again, we are 23 per cent, national growth is 15 per cent.

There are some positive signs in construction work, up more than 20 per cent. We have a jobs plan to stimulate the economy, to encourage investment, grow business and build a skilled workforce. Our job plan has key actions aimed at securing the future of the state's manufacturing sector and helping to diversify our economy. We announced a number of initiatives at election time: the acceleration and transformation of our manufacturing sector, significant infrastructure projects that will create jobs, the creation of a new jobs accelerator fund, retraining displaced automotive workers when that occurs, helping to transition the automotive supply businesses into new markets, and particularly supporting the northern suburb communities to generate local activity and jobs.

In terms of business, we have developed detailed plans for jobs and supported this through a raft of other measures to help grow businesses. We support business growth with investment through things like payroll tax concessions, reforming WorkCover, building a skilled workforce, providing for more help to businesses to win government work and also supporting skilled migration. All of this is obviously delivering a very clear message to business and investors that this state is open for business and that this government welcomes new investment in jobs.

We see the Liberal opposition talk down this state every single day. Every single day, we see them talk down South Australia, and we know how damaging that is. It erodes consumer confidence, it erodes business confidence and it erodes investors' confidence. So that is what the Liberal opposition do when they keep talking this state down. We do have challenges, and this government does not resile from addressing those, but we will not be party to just talking this place down.

The Hon. T.J. Stephens interjecting:

The PRESIDENT: The Hon. Mr Stephens, could he listen to the minister, please.

The Hon. G.E. GAGO: For instance, look at the businesses that are choosing to invest here in South Australia. We see that minister Mullighan recently announced that the South Road upgrade is likely to create around 850 new jobs. We see that Leveda disability service has recently announced that they will need to increase their workforce by around 230 over the next two years. We see the US retail store Costo planning to open three stores—

The Hon. R.I. Lucas: Costco, goose.

The Hon. G.E. GAGO: Costco, I beg your pardon, to open three stores—

The PRESIDENT: The honourable minister, can you sit down please. I just heard one of the honourable members call the minister a goose. I would like to hear the honourable member withdraw that.

The Hon. R.I. LUCAS: I withdraw.

The PRESIDENT: The honourable minister.

The Hon. G.E. GAGO: Thank you, Mr President. We also see Costco investing some $50 million, creating around 300 retail jobs with about 30 corporate positions, and I understand the first store at Kilburn is expected to open this November. We see Aldi investing, Masters investing, Brickworks Marketplace investing (800 jobs anticipated out of that project), BP Australia investing, Caltex (an 85 million-litre fuel storage terminal), Coles (additional stores are creating 100 new jobs in Gawler), Jetstar trebling its workforce, On The Run expansion to create an anticipated additional 200 jobs, Hewlett-Packard bringing 400 high-end IT jobs to South Australia, Hills—the list goes on and on.

So although the opposition might like to dwell on where the challenges lie, as I said, we do not resile from working hard to develop initiatives and programs to address those challenges. We will not be party to the Liberal approach, which is talking down this state, bagging this state, undermining consumer confidence, undermining business confidence and undermining investors' confidence.

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