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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2020-03-24 Daily Xml
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Economic Stimulus Package

The Hon. J.S. LEE (15:08): My question is directed to the Treasurer. The COVID-19 pandemic is having an unprecedented impact on the South Australian economy and health system. Can the Treasurer please outline the details of the government's economic stimulus package, and is the government proposing any further assistance measures?

The Hon. R.I. LUCAS (Treasurer) (15:09): The Premier announced—I think the first state leader to announce—a very significant economic stimulus package of around about $350 million. It does seem like months ago but it was probably only a couple of weeks ago, the time has moved so quickly.

The broad elements of that were, to the extent that it was possible, to provide some relief to actually—consistent with the advice that the Reserve Bank Governor and many other national commentators had made at the time—try to bring forward shovel-ready maintenance and/or construction programs into the latter part of this financial year and the start of the next financial year, so that we could help maintain jobs and economic activity within the community.

The best example of that was that by my colleague the Minister for Health—the outstanding and hardworking Minister for Health—in relation to country hospital maintenance programs. Money was brought forward from the forward years into this financial year and the early part of the next financial year for the essential maintenance which always needs to be done within country hospitals but does not always get done; however, because those programs were ready to go and the department was ready to go, authorisation was provided to the agency and then to those hospitals for that to continue.

We are similarly looking at that in relation to all other departments. The most obvious example is in education, but in other departments where there are ongoing maintenance programs where any of the work could be brought forward into this particular year or the start of next financial year, agencies and ministers are being encouraged to do that. There is still a very significant negotiation going on with the commonwealth government at the moment in relation to agreed funding, primarily for projects in regional areas.

The attraction of projects in regional areas in terms of country road funding such as road sealing and shoulder sealing is that country families and constituents generally welcome very openly any money being spent by any government on facilities in their particular areas. It is sometimes more of a challenge in built-up areas where there may well be compulsory acquisitions required in terms of congestion and work, there may well be planning issues and there may well be protests from residents who might be adversely impacted.

None of those issues generally apply when you talk about spending extra money in regional areas on regional roads in terms of upgrading those particular roads. There is a very significant negotiation going on with our minister and the commonwealth minister at the moment and we are hoping for an early conclusion to that to bring forward a number of significant projects in country areas. There is a range of other initiatives that were also included and outlined in that particular initial package.

As the global pandemic has continued and the economic devastation that has ensued has multiplied—and clearly in recent days with the announcement of forced closure of quite a number of businesses such as hotels, restaurants, cafes, gyms, etc.—the economic devastation is much more apparent and much more comprehensive. The Premier has indicated, I think in the morning newspaper and morning radio interviews, that the government is now looking at a second economic stimulus package which will look at a range of financial incentives and benefits, together with whatever it is we can do in terms of trying to protect and stimulate job activity in those industries that are still allowed to be operational.

I know that in the Minister for Health's area I would be hopeful that in the next week or so he will be able to announce an initiative there which will see important work being done from a health viewpoint but equally an important economic stimulus in terms of job creation in that particular portfolio area as well, and all ministers are being asked to have a look at that. We are looking at a range of tax relief options that other state governments and territory governments have announced. Whilst Premier Marshall took the lead in announcing the first economic stimulus package, all other state and territory governments, I think, have now announced economic stimulus packages and there is further discussion about the further support that is going to be required.

In concluding, I note that the commonwealth government, of course, has much deeper pockets than any of us—and much deeper pockets than certainly South Australia—a very significant, almost $20 billion package and soon after that the announcement of a $66 billion package, and the media indicates that the government is already looking at a third package that might be required. So whilst we will probably, in the next few days, announce a further stimulus and recovery package, given the length of what we are confronting, I am sure it won't be the last. We will probably have to announce further refinements as we see the economic devastation which has impacted on a broader variety of industries.

It is clearly apparent without me, because I am not part of the national cabinet, so therefore I am not revealing anything that I clearly don't have any knowledge of at the moment, but clearly all the decisions that are taken internationally are that we move to more and more restrictions and, eventually, there will be wider and wider impacts in terms of the economic impacts right across the board. The commonwealth government has a very big role, which it is taking the lead on. We acknowledge the support of the federal opposition, in terms of very quickly, I think in less than 24 hours, in unprecedented fashion passing a package of measures which went through.

Whilst the opposition may have not agreed with everything if they had been in government at the time, they nevertheless said, 'We are prepared to support this to go through in the nation's interest,' and we acknowledge that support from the federal opposition and the crossbenchers in both houses of the federal parliament. So we will announce something, but it won't be the end of it. We will have to look at what occurs, and we will probably have to announce further packages of support as more and more information becomes available over the coming weeks and months.

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