Tony Zappia (Makin, Australian Labor Party, Shadow Parliamentary Secretary for Manufacturing) Share this | Hansard source

Once again, in the 2015 federal budget South Australia was treated disgracefully by the Abbott government. That South Australia was unfairly treated in the 2014 federal budget came as no surprise. South Australians had just re-elected a state Labor government for the fourth time, and the Abbott government could not contain its displeasure. In the 2014 budget we saw only four per cent of the $50 billion of national infrastructure funding allocated to South Australia, and South Australia's $18 million annual Supplementary Local Road Funding was scrapped. The government's backflip on the six-year Gonski education funding program particularly hurt South Australia because most of the additional funding for South Australia was earmarked for years 5 and 6.

The funding cuts and the capping of Murray River water buybacks directly placed at risk the additional 450 gigalitres of water returns negotiated by South Australia in the Murray Darling plan.

In a state with an ageing population, attacks on pensioners and seniors were felt harder. Decisions to terminate the longstanding funding of pensioners and seniors concessions, increase the pension age to 70 years, and scrap the senior's supplement, worth $1,300 for couples and $900 for singles, not only personally impacted on pensioners and seniors but also impacted on the state economy.

Simultaneously, the Abbott government turned its back on GM Holden, a major economic driver in South Australia, immediately causing a loss of confidence right across the state. Before the election, Treasurer Hockey, whilst in South Australia, claimed that the coalition was the car industry's best friend. After the election he showed his true colours. The end of car making in South Australia will cause a $1-plus billion annual hit to the South Australian economy and the loss of thousands of jobs.

That was further compounded by the government's blatant broken promise on building the 12 replacement submarines in South Australia—a $50 billion project that would give South Australia a much needed boost and secure the economy for decades to come. The ASC employs about 3,000 workers in South Australia and its operations sustain many more. Not only had South Australians been misled by the Abbott government prior to the election, but the Abbott government then shamefully set about destroying the reputation of the Adelaide-based national ship builder ASC. As the submarine saga drags on, a Senate committee and a purpose-held forum in Adelaide both heard from local and international defence experts who submitted that Australia had the ability to build, at a cost-competitive price, a fleet of submarines that would meet Australian requirements. Yet the government refuses to listen and continues to undermine ASC. Clearly the Abbott government is laying the groundwork for breaking its pre-election promise. The result is more jobs lost, more businesses struggling and growing uncertainty.

There was hope that the 2015 budget might rectify the contempt the Abbott government had displayed for South Australia in its first budget. That was not to be. The unfair cuts continued. Last year's cuts to health and education were all carried forward and added to. Appallingly, a further $318 million was cut from infrastructure funding to South Australia, including: $130 million cut from rail projects, $126 million cut from South Road, $62 million cut from other roads projects, $4 million cut from bridges renewal and $2.5m cut from heavy-vehicle safety improvements. Whilst the Roads to Recovery funding was increased by $31 million, it falls far short of the $318 million in cuts. Infrastructure funding is one of the most effective means of boosting the economy, and, knowing that other federal government decisions were causing job losses in South Australia, this was not the time to cut South Australia's already low share of infrastructure funding.

From time to time, governments of all persuasions have to make hard and unpopular decisions. However, most of the Abbott government's hits to South Australia simply cannot be justified. It is clear that the Abbott government has turned its back on South Australia, whilst federal Liberal MPs make disingenuous excuses for their government. It is a smaller state with fewer federal seats in this parliament. For the Abbott government, it is all about politics and the South Australian people simply do not matter.

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