SA Economy

[rhino]

Labor gave us AO and rightly or wrongly the NRAH.

Plus a couple of freeways, several road underpasses and rail overpasses, fixed Goodwood and Torrens junctions, a much enlarged convention centre, O'Bahn extension into the city, extended the railway system to Seaford and started electrification, got trams back into the city, etc etc ...

[rev]

I don’t know if it’s being prudent or the state Govt hasn’t got the money but I think that this Govt is lacking a big project/plan or even a big announcement from Marshall. There are trickles of economic activity but nothing I consider really bold - a legacy project if you will. Labor gave us AO and rightly or wrongly the NRAH. Is there anything on the horizon (say worth in the billions) that Marshall may actually implement in his 4 year term (or even propose after that?). Before being elected he talked about a 24/7 airport at Murray Bridge, re-routing the freight lines around the hills etc, $20m to commence the Glenelg Jetty redevelopment.. but they seem to have been all gone quiet. What is that actual plan/date for finishing the North-South Expressway, a second stadium, the new W&C hospital etc ? It seems all very vague to me. So are things actually happening below the surface or are they just being forgotten about (maybe due to a lack of $$$/resources)?

There is no grand plan by the Liberals for anything like that. They were hoping to get elected on the basis that people were tired of Labor being in government for so long, and tired of a few scandals or debacles.

A 24/7 freight airport? For a tiny 15 billion dollars worth of exports? Would make sense if exports were booming and existing infrastructure couldn't keep up. But our exports have grown by 2.9% over the last 5 years, hardly earth shattering figures. What would it cost anyway, $1, 2..3 billion even?
We do at least export more then we import. Our biggest export is alcohol apparently lol.

If you look at the below PDF, 20.5% of our exports are to China. Next is the USA with 8.1%. I think we need those direct links to Japan and the USA, even India, sooner rather then later, so that we aren't overly reliant on China and better diversify our export markets.

https://dfat.gov.au/trade/resources/Documents/sa.pdf

[SBD]

They is the government.

It's a stupid idea topping off an even stupider idea, by a stupid government whose big economic master stroke has been to either cut spending and services, propose a pie in the sky freight airport in the middle of bumfuck nowhere, or bringing in tens of thousands of foreign workers to fill skills shortages when we have some of the highest unemployment figures in the country topped off by allowing them to be paid less money then what locals would be paid for the same jobs/work.

Surely it breaches some sort of industrial relations laws?

Isn't it more that the government will allow the employers to pay migrants who work in regional SA up to 10% less than the same people would expect to be paid to do the same job in Sydney or Melbourne? I understood it that there was a floor price on the salary of migrants in those job classes, and it is way above what locals get paid in the regions for those jobs. Someone got hold of "10% less" and didn't think about "...less than what?".

What sorts of products is it economic to export by air? Where are these things produced? The airport is proposed for quite a long time in the future anyway, so the question needs to be whether there will be a demand to not bring things to Adelaide for export. I imagine its things like meat, seafood and vegetables (aside from mail). I don't know what we import by air to provide back-loads for the aircraft, either, nor where that would ultimately be destined.

[how good is he]

True Rhino but to balance it, Labor did have 16 years/4 terms.. So for a fair comparison maybe compare either against Labor’s first term (or even 25% of what they achieved overall) against Marshall’s first term (with 3 years still to go). Thoughts how they would compare?

[how good is he]

It’s good Marshall is investing heavily in infrastructure in the budget. If as he says, the interest rate is only 1.66% its worth borrowing and makes sense to invest in projects that earn more than they cost. While our debt has gone to $21bn I still think he could have gone even more gang busters on borrowing and spending on infrastructure esp. if the National economy is likely to slow down. It would be good to plan to finally finish projects off within the next 5 years ie grade separation of all the problem level crossings not just 2 of them. Also there was no mention or funding for a second arena/stadium, light rail news or extension, the Glenelg Jetty re-development, a train extension from Outer Harbour to Techport, new Courts building etc etc

[Nort]

It’s good Marshall is investing heavily in infrastructure in the budget. If as he says, the interest rate is only 1.66% its worth borrowing and makes sense to invest in projects that earn more than they cost. While our debt has gone to $21bn I still think he could have gone even more gang busters on borrowing and spending on infrastructure esp. if the National economy is likely to slow down. It would be good to plan to finally finish projects off within the next 5 years ie grade separation of all the problem level crossings not just 2 of them. Also there was no mention or funding for a second arena/stadium, light rail news or extension, the Glenelg Jetty re-development, a train extension from Outer Harbour to Techport, new Courts building etc etc

No doubt some big announcements will come in the last year or two of their term.

[Jaymz]

While it can hardly be called a success, a drop in interstate migration of almost 2000 people between 2017/18 is a step in the right direction.

From today's online Advertiser.........


"Drop in number of people leaving SA, but growth only half the national rate
There’s been a decline in the number of people leaving South Australia — but our growth is still only half the national rate.

Matt Smith, National Affairs Editor, The Advertiser

|
June 23, 2019 11:00pm


Fewer people are leaving South Australia to live interstate, helping Premier Steven Marshall make good on a promise to stem the brain drain.

But thousands are still heading over the border and SA’s population grew last year at only half the national rate of 1.6 per cent.

New figures from the Australian Bureau of Statistics show SA grew by 14,585 people in 2018, taking the population to an estimated 1.742 million.

The state had a net loss of 4224 people to other states and territories — an average of 11 people a day. But that was down from the 6071, or 16 a day, in 2017.

“One of the ways to achieve growth in our economy is by stopping the brain drain of our young people interstate, placing a focus on attracting more international students, and through targeted skilled migration,” Mr Marshall said. “This is exactly what we are focused on achieving.

“One of the highest priorities of this government is addressing low population growth across the state.

“We know that growing our population is integral to creating more local jobs and a thriving economy, particularly in our regional areas.”

SA had “natural” growth of 5490 more births than deaths, and a net gain of 13,319 migrants from overseas.

Master Builders SA CEO Ian Markos said it is very concerning that South Australia’s population growth was less than half the national average.

“This is a long-term trend that is deeply entrenched and simply must be a top priority for policymakers to address,” Mr Markos said.

“With low population growth there will always be a low ceiling on demand for construction work — schools, offices, shops, hospitals and, of course, home building. You can’t have a strong economy without a strong building and construction industry, so South Australia risks falling further behind other states.”

Business SA industry and government engagement executive director Anthony Penney said more must be done to grow faster, but there was no quick fix.

“We can’t shackle South Aussies to their home to prevent them from moving interstate,” Mr Penney said. “Nor can we drag people from Sydney and Melbourne.

“But we can pay them and we can only do that by growing the economy, growing industry and growing jobs.”

Victoria had the fastest growth rate of 2.2 per cent, followed by the ACT on 1.8 per cent and New South Wales 1.6 per cent. The Northern Territory went backwards, losing 1000 people."

[rev]

Marshall hasn't done shit to address it, regardless of what the figures say.

The only thing that's going to stop young people moving interstate is jobs and economic opportunity in SA. The jobs are interstate. The economic opportunities are interstate. Until there's jobs and economic opportunity here that people can actually build a life around, then we will continue to lose people interstate.

Even migrants who've come from extreme poverty find there is a lack of economic opportunity in Adelaide and want to leave interstate because they have friends there who tell them that there's jobs and money to be made, and we lose many of them too as soon as they don't have any visa restrictions (I'm sure you all know that Adelaide is classed as rural for visas). I wonder if the figures reflect that as well.

[Jaymz]

I've said it before. But I really do believe if it wasnt for the State Bank collapse and subsequent impact on the State finances and economy, then S.A's population would now be at least 2 million. I recall reading recently the last year S.A had a net interstate migration increase was 1990.

[ghs]

I've said it before. But I really do believe if it wasnt for the State Bank collapse and subsequent impact on the State finances and economy, then S.A's population would now be at least 2 million. I recall reading recently the last year S.A had a net interstate migration increase was 1990.

If the car industry was still in full swing then we would also be looking at a population of nearly two million.

But there's no point in pondering what might have been, brother.

[Ho Really]

I've said it before. But I really do believe if it wasnt for the State Bank collapse and subsequent impact on the State finances and economy, then S.A's population would now be at least 2 million. I recall reading recently the last year S.A had a net interstate migration increase was 1990.

If the car industry was still in full swing then we would also be looking at a population of nearly two million.

But there's no point in pondering what might have been, brother.

The car industry was here a long time and we never reached 2 million. So saying if it was still here it would be our saviour. Far from it. What SA has lacked is a mining boom like WA. Besides that we're not a state that gets enough attention anywhere in the world. When people overseas think of Australia and where they want to emigrate does Adelaide or SA come to mind? We can't blame the present government or the previous few. We have the possibilities it is just we need to convince people we're a great place to live and work, and for that matter better than our compettitors interstate. Anyone here find the way to do that with the little money we have, we'll make you king!

Cheers

[SBD]

I've said it before. But I really do believe if it wasnt for the State Bank collapse and subsequent impact on the State finances and economy, then S.A's population would now be at least 2 million. I recall reading recently the last year S.A had a net interstate migration increase was 1990.

If the car industry was still in full swing then we would also be looking at a population of nearly two million.

But there's no point in pondering what might have been, brother.

The car industry was here a long time and we never reached 2 million. So saying if it was still here it would be our saviour. Far from it. What SA has lacked is a mining boom like WA. Besides that we're not a state that gets enough attention anywhere in the world. When people overseas think of Australia and where they want to emigrate does Adelaide or SA come to mind? We can't blame the present government or the previous few. We have the possibilities it is just we need to convince people we're a great place to live and work, and for that matter better than our compettitors interstate. Anyone here find the way to do that with the little money we have, we'll make you king!

Cheers

The car industry in (South) Australia has never been something we were globally known for. Local manufacture has really only ever been competing with sea freight.

What are we known for internationally?

I'd guess it might be:

• Food
  • Barossa Valley and wine in general
  • Wheat
  • Beef and other red meats
  • Seafood
• Wool
• Minerals
  • Copper
  • Uranium?
  • Opals
• Shipbuilding - not just the current Osborne facility, but Whyalla was significant from 1941 to 1978
• Kangaroo Island
• Education and research

Have I missed anything significant on a global (or even national) scale, or included something that shouldn't be there?

[Nathan]

Maybe, renewable energy? I would have said motorsport in the past, but not so much anymore. The Festival / Fringe combo (and other festivals), but despite them all growing, I think a lot of focus has been taken away from them by various festivals interstate gaining ground and attention (MONA FOMA / Dark Mofo, Vivid, etc.)

The car industry in (South) Australia has never been something we were globally known for. Local manufacture has really only ever been competing with sea freight.

What are we known for internationally?

I'd guess it might be:

• Food
  • Barossa Valley and wine in general
  • Wheat
  • Beef and other red meats
  • Seafood
• Wool
• Minerals
  • Copper
  • Uranium?
  • Opals
• Shipbuilding - not just the current Osborne facility, but Whyalla was significant from 1941 to 1978
• Kangaroo Island
• Education and research

Have I missed anything significant on a global (or even national) scale, or included something that shouldn't be there?

[SBD]

Oops - yes, I missed sport and culture. The Tour Down Under is definitely world-famous. Adelaide festival may not be so stand-out as it once was, but may well still be one of the world-known events of its type.

Supercars are pretty much only Australian and neither Adelaide nor The Bend are a "must do" special event like Bathurst. The Grand Prix and Race of a Thousand Years are things of the past.

Movie making still seems to be a niche market that SA gets some attention for. I don't recall who was making a movie (based at Glenside I think) a couple of months ago I heard an interview that said Adelaide is a great base as the desert is only 45 minutes away! I guess our perception of "desert" is coloured.

[rev]

Of course, people into food/wine, know of Adelaide. Is that a reason for people to move to SA? Are they booming industries creating tens of thousands of jobs? No. There's the problem with that example.

Ship building in Whyalla from the 40's to 70's. Problem with that is obvious. It's 2019. Most South Australian's wouldn't even know ships were built at Whyalla. And so what if we all did know? Does it create jobs today? No.
Ship building at osborne. Besides 6 submarines, and 3 ships, what's been built there? We might get to build 12 submarines there and 9 more ships, but by the time they all get built, it'll be close to 2050. By the time work on them starts it'll be well into the next decade. How many jobs out there anyway? A couple thousand at most? So hardly anything that's going to draw in tens of thousands of new migrants from interstate.
If they had any brains for business, they'd setup commercial operations in an adjacent yard and not rely on Department of Defence contracts which are few and far between. They'd be able to maintain a work force, perhaps even hire hundreds more, and have a constant flow of revenue. That would make the wider industry there sustainable and ensure skilled labor is not lost.

Minerals...Opal mining isn't that big. The opal miners aren't big multinational corporations. And most go months on end without finding any opal. It's very good money when they do find opal though, and that's how they survive. But their local council up in Coober Pedy is a major screw up, if you thought we had it bad here in Adelaide with cost of living.

Kangaroo island? Who knows about that or cares about that? Does it create tens of thousands of jobs? Anyone tries to develop anything on there for tourism, they struggle to get it done because the locals don't want anyone coming to their little island. There was a festival there once nearly ten years ago I think, went bankrupt after the first time it was held.

Seafood? You mean the seafood caught in Australia that gets shipped to places like Vietnam to be processed and packed before being sent back to Australia, or through the back door New Zealand? Doesn't create tens of thousands of jobs.

Education and research? Again, where's the jobs to bring in tens of thousands of new people to the state?

Most of what you've listed is good for tourism, and should be promoted further. But none of it is going to draw in tens of thousands of new residents to our city and state.

We need to be targeting interstate migration to SA. It's a lot more cost effective then running expensive marketing campaigns and setting up offices overseas, that have resulted in jack shit return.