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ECONOMIC ENVIRONMENT
The main reason we seek high economic growth is because it leads to higher rates of job creation and higher living standards.
Over much of the past decade and a half South Australia’s economic growth rate generally trailed the Australian average. Since the plan’s release, South Australia’s economic performance has been good overall, but significant challenges remain if we are to consolidate the gains and ensure that all South Australians share in the benefits.
Adelaide has been rated as one of the best places in the world in which to do business, and the challenge for the future is to maintain and improve that position. The state’s AAA credit rating was regained in 2004 and the target is now focused on maintaining that rating.
South Australia enjoys an enviable record of industrial harmony. Continuing that trend will have a positive influence on our economic growth. Increasing our business investment and labour productivity will be important contributors to the overall economic growth target.
T1.1 Economic Growth: exceed the national economic growth rate by 2014.
T1.2 Competitive business climate: maintain Adelaide’s rating as the least costly place to set up and do business in Australia and continue to improve our position internationally.
T1.3 Credit Rating: maintain AAA credit rating.
T1.4 Industrial Relations: achieve the lowest number of working days lost per thousand employees of any state in Australia by 2014.
T1.5 Business Investment: exceed Australia’s ratio of business investment as a percentage of the economy by 2014.
T1.6 Labour Productivity: exceed Australia’s average labour productivity growth rate in trend terms by 2014.
T1.7 Performance in the public sector - customer and client satisfaction with government services: increase in the satisfaction of South Australians with government services by 10% by 2010, maintaining or exceeding that level of satisfaction thereafter.
T1.8 Performance in the public sector - government decision-making: become, by 2010, the best-performing jurisdiction in Australia in timeliness and transparency of decisions which impact the business community (and maintain that rating).
T1.9 Performance in the public sector - administrative efficiency: increase the ratio of operational to administrative expenditure in state government by 2010, and maintain or better that ratio thereafter.
EMPLOYMENT
More and better job opportunities are vital if people are to lead fulfilling, independent lives and generate future opportunities, particularly for our young people. Jobs are in many ways the social dividend from having strong economic growth. The quality of available jobs is increasingly important. Higher skilled jobs provide higher incomes and greater security to the people who hold them.
T1.10 Jobs: Better the Australian average employment growth rate by 2014.
T1.11 Unemployment: maintain equal or lower than the Australian average through to 2014.
T1.12 Employment participation: increase the employment to population ratio, standardised for age differences, to the Australian average.
T1.13 Employment in the defence industry: increase defence industry employment from 16,000 to 28,000 by 2013.
EXPORTS
South Australia is a small state in a global economy. Export growth is arguably the single most important driver of future economic prosperity for South Australia, providing the best opportunity to boost our state’s jobs and income levels. It is of key importance that we diversify our export base, and move towards producing value-added goods and services, which involve high-level skills and knowledge, and for which international demand is growing strongly.
The defence industry target underlies the vital and growing role of this sector to the State’s future prosperity. The impending expansion of the mining sector is similarly recognised with ambitious targets for exploration, production and processing.
The value of South Australian exports has risen since the original plan’s release. However, their rate of growth has been inhibited in recent years by factors outside the state’s control, including drought, an over-valued exchange rate and instability in our key overseas markets. The target has been revised in this update by moving the timeframe to 2014, consistent with the majority of the other targets across the plan.
T1.14 Total Exports: treble the value of South Australia’s export income to $25 billion by 2014.
T1.15 Tourism industry: increase visitor expenditure in South Australia tourism industry from $3.7 billion in 2002 to $6.3 billion by 2014.
T1.16 Share of overseas students: double South Australia’s share of overseas students by 2014.
T1.17 Minerals exploration: exploration expenditure in South Australia to be maintained in excess of $100 million per annum until 2010.
T1.18 Minerals production: increase the value of minerals production to $3 billion by 2014.
T1.19 Minerals processing: increase the value of minerals processing to $1 billion by 2014.
T1.20 Defence industry: double the defence industry contribution to our economy from $1 billion to $2 billion by 2013.
INFRASTRUCTURE
The effective and efficient provision of infrastructure is a key to sustaining high rates of economic growth and productivity improvement. It is critical for achieving our exports target. Equally important are infrastructure investments that extend opportunity to all South Australians and create a stronger and fairer community.
The infrastructure needs of South Australia can only be met through a partnership between state government, business, other tiers of government and the regions.
T1.21 Strategic infrastructure: match the national average in terms of investment in key economic and social infrastructure.
POPULATION
South Australia’s population growth has been the lowest of the Australian mainland states and territories over much of the last decade. A lower number of immigrants and a net loss due to interstate migration have contributed to this, although recently there has been an increase in the number of overseas migrants settling in South Australia. Based on the ABS’ extrapolation from current trends, the South Australian population is projected to peak at around 1.6 million in less than 25 years and then go into decline. Measures must be taken to avoid this scenario.
T1.22 Total population: increase South Australia’s population to 2 million by 2050, with an interim target of 1.64 million by 2014.
T1.23 Interstate migration: reduce annual net interstate migration loss to zero by 2010, with a net inflow thereafter to be sustained through to 2014.
T1.24 Overseas migration: increase net overseas migration gain to 8500 per annum by 2014.
T1.25 Population fertility rate: maintain a rate of at least 1.7 births per woman.
ABORIGINAL UNEMPLOYMENT
South Australia's Aboriginal unemployment rate has been of great concern, running at more than three times the rate of our non-Aboriginal population. As noted earlier, employment has a direct and positive impact on a person's ability to lead a fulfilling, independent life. We must address the current disparity to provide for the full and equal participation by our Aboriginal population in the social and economic life of our state.
T1.26 Aboriginal unemployment: reduce the gap between Aboriginal and non-Aboriginal unemployment rates each year. |
