The largest deficit in South Australia’s history is the fundamental weakness of a dangerous State Budget, the Opposition Leader said today in his Budget reply.
Steven Marshall used his attack on the Budget to rule out major cuts to public service numbers, instead promising a State-based Productivity Commission.
“This is a dangerous budget for the people of South Australia,” Marshall told Parliament this morning.
“This is an extravagant budget delivering the largest deficit in the State’s history … $1.3 billion dollars.
“The (economic) growth rate is the lowest of any state in the country.
“It offers no plan to provide relief for business.
“It offers no relief for families.
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“It offers no relief for regional areas.”
Marshall focussed on debt and deficit, while also taking aim at the Labor Government’s traditional areas of spending.
“The new spending has been extravagant.
“But there have been cuts to police, health and education.”
The increase in sSate debt was shielded, he said, by one-off payments for the forward sale of forestry assets and the SA Lotteries licences.
Marshall offered an alternative view of economic direction – albeit with little detail.
“The Liberal Party has a plan for South Australia that has three main elements.
“One; to return the Budget to surplus. Two; to grow the economy. And to make this an attractive place for our young people.”
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Marshall said the economic impact of losing young people interstate and overseas was significant.
“Imagine if those 32,000 were back in the economy.
‘We would be a completely different state if we hadn’t lost those people.”
He promised the small business sector would be “restored to its rightful place”.
Marshall again declined to provide detailed policy alternatives, adding that he was working with his Shadow Treasurer on polices that would be released later in the electoral cycle.
Public sector productivity came under fire in Marshall’s speech.
Citing poor labour productivity in SA compared to the national average, he said productivity improvements should start with the government.
Major cuts in public service numbers were ruled out and the previous Liberal policy of an Audit Commission to target cuts was abandoned.
“I completely and unequivocally rule out major cuts to the public sector,” Marshall said.
“We previously advised that we would establish an Audit Commission.
“Today I can announce that public service productivity will be a major focus for a Liberal Government.
“There will be a new commission; we will establish a State-based Productivity Commission based on the federal model supported by Labor.”
Marshall said he estimated public service job cuts would be at around the same level as the State Government’s proposed cuts, but efficiency would be targeted.
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