“South Australian businesses have received pockets of support in the face of difficult economic times, but the South Australian State Budget does not provide the stronger sector-specific growth agenda needed to help key sectors invest, expand and create demand,” said Estha van der Linden, South Australian Head of the national employer association, Australian Industry Group.
“While support for the SA construction sector through various initiatives is welcomed, there are many other sectors that help create the backbone of the State and need greater support, such as the care sector and manufacturing.
“The care sector is one of the largest employers in South Australia and is facing extremely tight margins, staffing shortages, as well as major uncertainty due to changes on the horizon to the NDIS. The manufacturing industry is struggling with increased energy prices, labour costs and property-based taxes, none of which have been addressed in this budget.
“Australian Industry Group supports the increased focus on research and development in the budget and the development of five independent research institutes associated with SA’s universities.
“This initiative will only succeed if industry has a genuine role in setting the five priority areas and the funding is directed to practical outcomes rather than being absorbed by the university sector.
“A freeze on non-frontline public sector recruitment is a practical and necessary step that will help reduce competition for scarce workers, while protecting the frontline services South Australians rely on.
“Australian Industry Group welcomes the announcement of a review of red tape. A genuine review of red tape is long overdue and has the potential to remove unnecessary barriers that slow investment, frustrate business and undermine productivity,” Ms van der Linden said.
