Question Time

Federal Budget

The Hon. T.T. NGO (14:54): I seek leave to make a brief explanation before asking the Minister for Employment, Higher Education and Skills a question about the economy.

Leave granted.

The Hon. T.T. NGO: Last Thursday's release of the unemployment figures indicated some positive jobs growth in South Australia, namely that there had been 11 consecutive months of increasing full-time employment, which equates to an average of 700 jobs a month and nine consecutive months of increases in the total number of people employed. However, a recently released report on the impacts of the federal budget casts a dim view on the South Australian economy into the future. Can the minister explain to the chamber what the impacts of the federal government's cuts may mean to South Australia?

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) (14:55): I thank the honourable member for his most important question. The recently completed Australian Workplace Innovation and Social Research Centre study shows that the federal budget cuts will be about a $1.6 billion hit to the South Australian economy from the proposed health and education cuts. This equates up to 7,000 fewer jobs being created by 2017-18. This is a massive concern to South Australian families and will make the task of jobs growth all the harder for this government.

Families in the north of Adelaide are already grappling with impacts from the closure of the automotive industry. The report suggests that commonwealth expenses for mining, manufacturing and construction industries will decline by 16.1 per cent over 2013-14 to 2014-15—again, a massive hit to jobs for those lower income families who will be hardest hit by these cuts.

It does not stop at job losses. This report shows that the federal government is not willing to support training and the vocational education sector, an area where we know commencements have shown a decline in South Australia. I have previously spoken in this place about the cuts to the Tools for Trade program and the cessation of other skills and training programs. The report also concludes that these federal budget cuts will have serious consequences for apprentices and trainees.

This report also demonstrates how little regard the federal government has for its learn or earn model for the unemployed. The report shows that parents' ability to participate in study will be significantly hindered by changes to the Child Care; Jobs, Education and Training Child Care Fee Assistance Initiative. What is the alternative? A weekly cap of 26 hours, down from 50 hours, for parents undertaking study. To quote from page 5 of the report:

The withdrawal of investment from many of these areas will have impacts on South Australian…growth performance over the medium and long terms. Measures in the budget such as reduced support for skilling and workforce participation interact in complex ways with other budget measures in social services support (e.g. reductions in Family Tax Benefits Parts A and B), employment (e.g. six-month waiting period for unemployment benefit), and housing and health to, in all likelihood, deaden labour force participation and productivity.

The federal government and those opposite who, through their deafening silence, show that they have no regard for low income earners, single parents or older South Australians, have no regard for people who want to have a meaningful job and create a meaningful future for this state. Unlike those opposite, we speak up for South Australians and we want to fight to have these cuts reversed.

We have worked with industry and business setting out 10 economic priorities for the state which articulate our efforts for job creation and strengthening and diversifying our economy. Our work with industry and business has seen South Australia experience 11 consecutive months of increases in full-time employment at just over 700 jobs per month and increases for nine consecutive months in the number of people employed at nearly 1,000 jobs per month. This trend growth in—

The Hon. D.W. Ridgway: Why were we worst on mainland Australia?

The Hon. G.E. GAGO: Well, we're not. Again, the honourable member is quite incorrect. This trend growth in employment combined with record levels of exports, record levels of minerals and petroleum exploration, increasing retail trade and growth in business investment are all indicators of a strengthening economy. All of this hard work will be severely diminished if the federal government's cuts to areas, including health, education, universities, housing, VET and infrastructure funding, are materialised. All of this from the Abbott government and a Prime Minister who wanted to be known as the infrastructure prime minister, a title I doubt he will achieve if these cuts are realised in the federal budget.