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Weatherill’s Budget a false economy

Jun 18, 2012

Isobel Redmond MP

Leader of the Opposition
Shadow Minister for the Arts, Multicultural Affairs and ICAC

Weatherill’s Budget a false economy

The Weatherill Labor Government has been warned not to pin South Australia’s economic hopes on a mining boom in a new report from the SA Centre for Economic Studies (SACES).

“Just as you cannot run a family budget on the hope of a job promotion or a lottery win, the Weatherill Labor Government should not run the state’s economy on what it hopes will happen,” Liberal Leader Isobel Redmond said.

The SACES report clearly shows that South Australia is not experiencing a mining boom and indicates there is:

"increasing doubt about when the (Olympic Dam) project will proceed”

The report also questions the Weatherill Labor Government’s assumptions about South Australia’s immediate future prosperity saying:

“It is... difficult to sustain the notion that South Australia is in the middle of a mining boom"

“The report shows South Australia recorded weak economic growth over the past 12 months and forecasts more weak growth for the coming financial year,” Ms Redmond said. 

“It cuts Treasury's gross state product estimate of 2.75 per cent down to 0.5 per cent and also reduces Treasury's employment forecast from 0.75 per cent growth to 0.5 per cent.

"After 10 years of Labor Government South Australia continues to lag in population growth. Around 30,000 people have left the state since Labor came to power, the housing market is in the doldrums and retail activity remains lacklustre.

“The SACES report shows money spent on the mining industry is less now that it was four years ago reinforcing concerns that our state is too reliant on the Olympic Dam expansion.

“The misrepresentation of the state of South Australia’s finances made in the budget underpins the need for an Independent Audit Commission, Queensland’s Commission of Audit found debt would reach $100 billion by 2018-19 – who really knows how bad the bottom line is for SA under Labor?

"Labor has been promising South Australians a mining boom for the past 10 years and it can’t go on simply living in hope,” Ms Redmond said.



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