Don Farrell (SA, Australian Labor Party) Share this | Hansard source

I know you are embarrassed about this and I know you do not want to hear it. Recently released statistics from the Australian Bureau of Statistics outline the excellent shape the South Australian economy is in. State final demand grew by 4.1 per cent through the year to the December quarter 2009, well above the 2.8 per cent growth recorded nationally. Figures from the Housing Industry Association also show that the South Australian housing market is heading in the right direction with a 22.2 per cent increase in building approvals for January over December. In comparison there was a seven per cent fall in building approvals nationally. South Australia can also boast the lowest unemployment rate in the country with South Australian unemployment falling to 4.4 per cent seasonally adjusted in January 2010, the lowest figure ever recorded in South Australia.

South Australia has worked hard to maintain strong economic conditions within the state. Once again South Australia has retained its prized AAA credit rating, which reflects the sound position of the state’s finances. Additionally, Adelaide continues to offer one of the most cost-competitive locations to set up and do business within Australia and consistently ranks among the world’s most liveable cities, according to a number of annual surveys and reports. It is little surprise that business investment is at near record highs with over $10.9 billion invested in the year to September quarter 2009. This represents a 47.8 per cent increase, compared with figures in 2000.

The mining industry in South Australia continues to expand at unprecedented levels, with significant increases in mining exploration and the expectation that production levels will increase in the future. Since 2002 South Australia has gone from having four mines to 11 and it is estimated that there will be at least 16 mines in operation by the end of this year. The potential for the South Australian mining industry is enormous, with Access Economics suggesting that the state could become the world’s next energy export powerhouse due to its uranium reserves. The mining industry in South Australia already supports around 30,000 jobs within the state and the Rann Labor government has pledged $18.2 million in further investments to assist in the growth of the industry.

South Australia continues to build on its reputation as Australia’s defence state with the recent opening of the Techport Australia facility, which will be used in the production and launching of the $8 billion Air Warfare Destroyer project. Over the next decade, this project alone will deliver some 3,000 jobs and an estimated $1.4 billion to the South Australian economy. South Australia has also managed to secure an additional $44 billion worth of defence projects which will be implemented over the next two decades, and other measures which will ensure the prosperity of the state long into the future.

In addition to a strong foundation provided by the state’s mining and defence industries, a number of major events are securing important tourism dollars for the state economy. Large crowd numbers at the Tour Down Under Project Tour cycling event in January brought in a record $41.5 million for the state economy and the event shows no signs of slowing down. The Adelaide Festival of Arts and the Adelaide Fringe are currently under way and always draw big crowds from interstate and overseas. In 2009 the Adelaide Fringe injected some $27.2 million and attracted over 29,000 visitors to the state, while the 2008 Adelaide Festival of Arts helped bring in over $14 million to the state economy. The two giant pandas, on loan from China to the Adelaide Zoo, are also expected to generate $632 million for the state during the next decade. In addition to providing an attraction no other Australian state can offer, the pandas are likely to provide a unique selling proposition to the Chinese when it comes to future investment opportunities in the state’s mining sector.