Download Report

BUSINESS SA Submission
2015-16 State Budget
May 2015
2015-16 State Budget
May 2015
BUSINESS SA
Contents
Introduction............................................................................................................................................ 3
Executive Summary ............................................................................................................................. 3
Recommendations - Summary........................................................................................................... 4
Fiscal Strategy & Transparency ......................................................................................................... 6
Taxation ................................................................................................................................................. 6
Infrastructure ......................................................................................................................................... 8
Governance ......................................................................................................................................... 10
Environment & Sustainability ............................................................................................................ 11
Public Sector Reform ......................................................................................................................... 12
Tourism ................................................................................................................................................ 13
2
2015-16 State Budget
May 2015
BUSINESS SA
Introduction
As South Australia’s peak Chamber of Commerce and Industry, Business SA is South Australia’s
leading business membership organisation. We represent thousands of businesses through direct
membership and affiliated industry associations. These businesses come from all industry sectors,
ranging in size from micro-business to multi-national companies. Business SA advocates on behalf of
business to propose legislative, regulatory and policy reforms and programs for sustainable economic
growth in South Australia.
As part of that advocacy, in the lead up to the State Election in March 2014 Business SA launched the
2014 Charter for a Prosperous South Australia which made recommendations for the new State
Government. Business SA commends the State Government for accepting several
recommendations to date, particularly in relation to workers compensation reform and the
Nuclear Fuel Cycle Royal Commission.
This submission primarily focuses on the remaining recommendations from the Charter and is
supplemented by additional recommendations regarding issues arising since the beginning of 2014
through ongoing consultation with members.
Should you require any further information or have any questions, please contact Rick Cairney,
Director of Policy, Business SA on (08) 8300 0000 or rickc@business-sa.com.
Executive Summary
The South Australian economy continues to stagnate, with Gross State Product growing at just 1.3%
1
during 2013/14 . The latest State Final Demand figures for the six months to December 2014 also
point to declining economic growth for financial year 2014/15. Beyond that, Gross State Product is
forecast to grow at just 2.5% in 2015/16, before declining to 2.25% for both 2016/17 and 2017/18 as
the South Australian economy adjusts to the loss of its automotive production sector.
2
Hopes of South Australia playing a significant role in the mining boom have been dashed by low
commodity prices, particularly iron ore, while falling oil prices have depressed the short term outlook
for the State’s unconventional gas prospects. On a brighter note, a recent run of average or above
average grain crops have boosted the State’s agricultural prospects, as have higher beef prices, while
horticultural crops including almonds and citrus show strong promise. The recent decline in the
Australian dollar has also helped to support South Australia’s significant wine producing sector.
South Australia has experienced five consecutive budget deficits. We are well beyond the GFC and
the case to return our budget to a sustainable surplus is becoming quite clear, particularly in light of a
potential Federal credit down grade which will directly impact South Australia. South Australian
businesses need tax relief to put them on a competitive footing with interstate and overseas
competitors and the ability of the State Government to improve its tax competitiveness will be vastly
improved once it restores its own fiscal position. There are also significant economic opportunities in
South Australia which can be realised through appropriate investments in economic infrastructure
1
2
ABS, Australian National Accounts 2013/14, 21 November 2014
South Australian Government, Mid-Year Budget Review, 2014
3
2015-16 State Budget
May 2015
BUSINESS SA
which are much more achievable when governing from a position of surplus. It is not about
governments alone driving economic growth, but there is often a strong public policy rationale for
governments to support infrastructure which may not be viable through the private sector acting in
isolation. The private investment in the Riverbank Precinct is an excellent example of public funding
creating a catalyst and platform for private investment.
Notwithstanding the State Government’s weak fiscal position, driving infrastructure investment must
still be front and centre of the 2015/16 budget, and while government contributions may be limited,
they must be properly targeted. There is no credible business case for the O-Bahn extension and in
our view this project should be abandoned with committed funds allocated to economic infrastructure
projects such as the Northern Connector and Northern Adelaide Irrigation Scheme. Furthermore, an
independent statutory authority should be established to advise the State Government on future
infrastructure priorities and to thoroughly explore various options to attract alternative funding of
infrastructure, particularly through superannuation funds. This independent authority must not be
restricted in terms of what means it considers for funding new infrastructure projects, including user
charges such as road tolls. Unfortunately South Australia no longer has the luxury to exclude any
infrastructure funding option.
Ongoing reform in the State Public Sector is still required despite the Government making some inroads in the past two years from the amalgamation of Government departments and the review of all
State Government boards and committees. Business SA commends the State Government for its
action to date in the current parliamentary term but cautions against complacency and stresses the
need to continue looking for efficiencies. A key area of focus should be on existing public sector
redundancy arrangements to ensure ‘excess’ staff from redundant roles are not carried on in paid
employment for up to twelve months. Such a requirement would be unsustainable in the private sector
and tax payer funds to provide this in the public sector should be discontinued.
Recommendations - Summary
Fiscal Strategy & Transparency
1. Reverse the $2.7 billion debt swap from the Government’s balance sheet to SA Water
implemented in the 2014/15 State Budget.
Taxation
2. Collaborate with the Federal Government and other States & Territories to ensure both the
State and Federal Tax Reviews deliver a tax system which comprises the optimum mix of
State and Federal taxes to deliver business led economic growth.
3. Re-introduce the payroll tax exemption for wages paid to apprentices and trainees.
4. Abolish stamp duty on business transfers and non-quotable marketable securities as agreed
in the Inter-Governmental Agreement on Federal Financial Relations.
4
2015-16 State Budget
May 2015
BUSINESS SA
Infrastructure
5. Prioritise the remaining infrastructure required to achieve a seamless North-South transport
corridor through Adelaide, primarily the Northern Connector project.
6. Establish an independent statutory authority which can investigate alternative infrastructure
funding models to encourage the superannuation sector, particularly locally based funds, to
invest in Greenfield (new) infrastructure.
7. Abandon the O-Bahn extension project to preserve limited infrastructure funding for projects
which can deliver sustainable economic benefits.
8. Commit an appropriate level of funding to the Northern Adelaide Irrigation Scheme and
continue lobbying the Federal Government for proportionate support.
Governance
9. Establish a small, independent Sustainable Budget Oversight Unit for reporting, monitoring
and making recommendations regarding Government savings decisions and targets (as
recommended in the Sustainable Budget’s Commission’s second report).
Environment & Sustainability
10. Align the existing waste levy with the recurrent funding requirements of Green Industries SA.
Public Sector Reform
11. Reduce the period an “excess” worker can remain in employment from 12 to a maximum of 3
months.
Tourism
12. Increase the existing funding level of the Adelaide Convention Bureau to $5 million per
annum.
5
2015-16 State Budget
May 2015
BUSINESS SA
Fiscal Strategy & Transparency
1. Reverse the $2.7 billion debt swap from the Government’s balance sheet to SA Water
implemented in the 2014/15 State Budget.
Business SA acknowledges the rationale provided by the State Government for transferring $2.7
billion of General Government Sector Debt to SA Water’s balance sheet. It may well be that SA Water
has a lower level of gearing when compared to interstate water utilities. However, that is not sufficient
reason to increase the debt of SA Water and consequently reduce the equity held by the South
Australian public. The equity of SA Water is a public asset and should South Australia ever decide to
take advantage of the Federal Government’s yet to be legislated asset recycling initiative, 15% of $2.7
billion amounts to $405 million, an amount which would be foregone unless the debt swap is
reversed.
Accordingly, the State Government should reverse the $2.7 billion debt swap to provide transparency
around its true net debt situation and to ensure any future asset sales realise the most value for all
South Australians.
Taxation
2. Collaborate with the Federal Government and other States & Territories to ensure both
the State and Federal Tax Reviews deliver a tax system which comprises the optimum
mix of State and Federal taxes to deliver business led economic growth.
Business SA is actively involved in consultation processes for both the State and Federal tax reviews.
To achieve the outcomes businesses need, it will be imperative for both the State and Federal
Governments to collaborate to ensure that reform of State taxes can be achieved through reform of
Federal taxes. Businesses are agnostic as to the level of Government taxes are paid to, but inefficient
taxes, particularly payroll tax, impose a constraint on business expansion and the creation of new
sustainable jobs.
As the voice of business in South Australia, we are genuinely encouraged by efforts from both the
State and Federal Government to open the debate on tax reform. While the task of tax reform will
always be a challenge for Governments, it is important that both levels of Government understand
that competitive tension throughout the process will ultimately lead to optimum public policy
outcomes.
Real tax reform is a once in a generation opportunity and considering South Australia’s current
economic malaise and the challenges we face post auto-manufacturing, it is certainly not one we can
afford to squander.
Whatever the ultimate outcomes of both State and Federal Tax reforms, South Australian businesses
need a system which encourages investment and job creation. Furthermore, as South Australia
enters a period of structural economic adjustment beyond auto-manufacturing, the tax system needs
to appropriately incentivise the commercialisation of research and innovations, particularly to increase
collaboration between the university sector and SMEs.
6
2015-16 State Budget
May 2015
BUSINESS SA
Reform of payroll tax will still be a primary focus of business in the tax reform process, but business is
also interested in reforms which can improve the broader efficiency of the tax system and facilitate
economic growth. Replacing stamp duty with a broad land tax may improve the broader economy by
enabling both businesses and residents to more easily move to their preferred location, but
transitional measures will need to be appropriately set and considerations be made for how such
changes might impact upon tenants, both commercial and residential.
Notwithstanding Business SA is pursuing wholesale tax reform at both a State and Federal level, we
have made two specific recommendations on tax reform to be implemented in the 2015/16 State
Budget. Both recommendations relate to previous policy positions of the State Government and can
be implemented without materially impacting on broader tax reform agendas.
3. Re-introduce the payroll tax exemption for wages paid to apprentices and trainees.
In the lead up to the 2010 election, former Premier Mike Rann announced a four year relief plan
promising to abolish payroll tax for apprentices and trainees, but this tax exemption was subsequently
abolished in the 2012/13 Budget. The resultant $30 million per annum savings were supposedly
redirected to better target support for training in areas of critical skills under the new Skills for All
program. However under Skills for All virtually all non-trade qualifications have been capped and
subsidies for the few funded qualifications which directly link to employment outcomes have been
significantly reduced. Subsequently, the Government has acknowledged that Skills for All has not
delivered the outcomes that are needed and recently scrapped the program.
In a 2012 survey of its members, Business SA found that if the payroll tax exemption for apprentices
and trainees had remained in place, three quarters of respondents would have employed more
apprentices, and almost two thirds of respondents would have employed more trainees. These survey
results accord with the actual reported level of apprenticeship commencements which have
decreased from approximately 7,000 per quarter as at July 2012 to approximately 3,000 per quarter
as at September 2014 3. At a time of alarmingly high youth unemployment this would be a concrete
step towards getting for young South Australians in meaningful jobs.
4. Abolish stamp duty on business transfers and non-quotable marketable securities as
agreed in the Inter-Governmental Agreement on Federal Financial Relations.
Schedule B of the Inter-Governmental Agreement on Federal Finance Relations between the
Commonwealth and States and Territories incorporated a commitment for South Australia to abolish
stamp duty on business transfers from 1 July 2013, as well as to abolish stamp duty on non-quotable
marketable securities by 1 July 2013. Both commitments set to cost $38 million per annum and $4
million per annum respectively, were deferred in the 2012/13 State Budget due to fiscal constraints.
The 2010 Henry Tax Review singled out stamp duty on business transfers as being particularly
inefficient. Business ownership needs to be liquid, particularly in a difficult economic environment. If
owners are reluctant or unable to transfer assets to a party better able to extract value from that
business there is a subsequent dead weight loss to the economy.
3
NCVER, September Quarter 2014, P18
7
2015-16 State Budget
May 2015
BUSINESS SA
Infrastructure
5. Prioritise the remaining infrastructure required to achieve a seamless North-South
transport corridor through Adelaide, primarily the Northern Connector project.
In Business SA’s State pre-election survey, 93% of respondents agreed that the State Government
should prioritise the remaining infrastructure required for a seamless North-South transport corridor
through Adelaide.
South Australia’s economic revival must be led by export orientated industries which rely on having
efficient freight routes to strategically located port infrastructure. The Northern Connector project
would be a key link in the North-South corridor involving a 15.6km triple lane freeway connecting the
existing Northern Expressway and Port Wakefield Road interchange to the Port River Expressway at
the South Road Superway interchange. This project would reduce freight costs for key growing
regions of South Australia including the Adelaide Plains, Barossa Valley, Mid North and Riverland and
help to increase their export competitiveness across a range of commodities and food & beverage
manufactures.
The Northern Connector has already been subject to a detailed cost benefit analysis by the State
Government resulting in a Net Present Value (NPV) of $1.67 billion. Furthermore, the Benefit Cost
Ratio (BCR) from the original assessment has been revised upwards from 5.2 to 6.1 and although the
Federal Government’s Infrastructure Australia does have some issues with the methodology used, it
did conclude that the project is still likely to result in a positive BCR.
At present, Infrastructure Australia has classified the Northern Connector project as having ‘real
potential’ for Federal Government funding, but has requested additional modelling by the State
Government, including for options to employ user charging.
Business SA recommends the State Government expedite modelling on alternative funding options to
be able to put a proposal to the Federal Government based on a State Government funding
commitment, a possible user charge and any associated third party funding. This approach will
maximise the possibility of Federal Government funding to ensure this project proceeds in the near
future, particularly considering the construction jobs which will be created in the northern suburbs at a
time of major structural economic adjustment related to Holden’s closure in 2017.
6. Establish an independent statutory authority which can investigate alternative
infrastructure funding models to encourage the superannuation sector, particularly
locally based funds, to invest in Greenfield (new) infrastructure.
In Business SA’s State pre-election survey, 78% of respondents agreed that an independent authority
should be established to advise the State Government on prioritising infrastructure projects according
to return on investment for the State. This result is consistent with our September Quarter, 2013
Survey of Business Expectations in which 77% of respondents supported an independent
infrastructure authority.
South Australia’s infrastructure needs should be determined by objective cost-benefit analysis of
specific project proposals without a focus on electoral boundaries.
8
2015-16 State Budget
May 2015
BUSINESS SA
The progress of the North-South Transport corridor has been limited by political manoeuvring related
to prioritising specific segments of the whole project. With an independent infrastructure authority in
place, both levels of Government could rely on objective advice, not only in relation to which
segments of the North-South Transport corridor should be prioritised, but whether there are
alternative projects which could achieve a more beneficial outcome with finite resources.
The new board must have a broad mix of private sector experience including expertise in
infrastructure, institutional investment, alternative funding vehicles and an understanding of what
economic infrastructure is most critical for business, particularly exporters. The board must also be
structured to ensure adequate independence from Government and be open to receiving unsolicited
proposals from industry.
7. Abandon the O-Bahn extension project to preserve limited infrastructure funding for
projects which can deliver sustainable economic benefits.
The O-Bahn extension project may reduce peak hour delays for bus services competing with vehicles
on the city ring route, but there has been no convincing business case provided to demonstrate a
credible cost-benefit ratio. The time savings for North-Eastern commuters are reported to be less than
five minutes per trip and there is no strong public policy rationale to spend $160 million of limited tax
payer resources on a project which benefits such a limited proportion of South Australians. Any cost
savings this project might deliver to a future tram extension to the east are questionable and should
not be used in any way to justify project viability.
Notwithstanding this project may be viable in future under different fiscal circumstances, any
infrastructure funding in the 2015/16 State Budget must be prioritised on delivering economic
infrastructure which provides the foundation for sustainable economic growth and job creation. A
decision to abandon the O-Bahn extension will indicate the State Government is serious about fiscal
reform and positioning South Australia to invest in its economic future, particularly in sectors with
strong growth potential including agriculture, food & beverage manufacturing and health & medical
research.
8. Commit an appropriate level of funding to the Northern Adelaide Irrigation Scheme
(NAIS) and continue lobbying the Federal Government for proportionate support.
Business SA has publically backed the State Government’s request for Federal funding to upgrade
the Bolivar Waste Water Treatment Plant and associated pipe infrastructure to double the capacity of
water available through the existing Virginia Pipeline Scheme to 40 Giga litres (GL). The NAIS project
is estimated to increase the value of South Australia’s horticulture production by $250 million per year
through enabling 3,600 hectares of predominantly new horticulture (broad-acre and greenhouse) and
intensive livestock production on the fringe of Adelaide’s northern suburbs. This project also fits
strategically with the Governments focus on ‘premium food and wine from our clean environment’ and
will create further demand for the Northern Connector project to provide a streamlined freight
connection to Port Adelaide. The NAIS is a great example of the type of infrastructure funding the
State Government should be focused on, particularly considering the benefits accruing to the northern
suburbs which will be acutely impacted by Holden’s closure in 2017.
9
2015-16 State Budget
May 2015
BUSINESS SA
The NAIS will rely on approximately $300 million of private funding to facilitate on-farm infrastructure
but it will be important that both the State and Federal Governments commit the $170 million of public
funding required to expand the Bolivar Waste Water Treatment Plant and build necessary pipes and
storages. This project will also meet important environmental objectives through reducing outflows
into Gulf St Vincent and fits strategically with the State Government’s view to strengthen Adelaide’s
urban growth boundary.
The NAIS will also complement the recently funded Gawler Water Reuse Scheme which is intended
to clean 1.6 giga litres (GL) of harvested storm water to be stored in an aquifer for later use by
Seppeltsfield winery and local reserves and school ovals.
Governance
9. Establish a small, independent Sustainable Budget Oversight Unit for reporting,
monitoring and making recommendations regarding Government savings decisions
and targets (as recommended in the Sustainable Budget’s Commission’s second
report).
The State Budget remains in a structural deficit. Following two deficits in 2010-11 and 2011-12, $53
million and $258 million respectively, the budget deficit deteriorated to $948 million in 2012-13 and
increased further to $1.02 billion in 2013-14. Based upon the latest publically available information,
the 2014/15 deficit is forecast at $574 million (assisted by the receipt of a $459.2 million dividend from
the Motor Accident Commission) and while a small surplus was forecast at the Mid Year Budget
Update for 2015/16, this does not significantly alter the trend underlying recent fiscal performance.
As at 30 June 2010, net debt was $1.4 billion. At the time of the 2013/14 State Budget, the new Royal
Adelaide Hospital was scheduled to come onto the State Government’s balance sheet and net debt
was forecast to peak at $8.76 billion in 2015-16, which at 49% of revenue was still below the
Government’s 50% fiscal target.
In the 2014/15 State Budget, the Government made an adjustment to net debt by transferring $2.7
billion of debt to SA Water’s balance sheet. This improved forecast peak net debt which was then
expected to reach $7.2 billion in 2015/16 before declining thereafter, not $9.9 billion as would have
occurred prior to the adjustment. However, if we compare non-adjusted net debt in 2015/16 to
forecast revenue, the ratio is 57.6% which is well above the Government’s fiscal target of 50%.
The point is that South Australia’s underlying fiscal position is far from satisfactory and underlies the
need for independent oversight of spending and savings measures to restore strength to the State
Government’s balance sheet and expedite a return to AAA credit ratings.
Following the first report by the Sustainable Budget Commission (the Commission), the State
Government agreed to establish a Sustainable Budget Cabinet Committee, comprising the Premier
and senior cabinet members to drive the implementation of savings measures proposed by the
Commission and to restore sustainable public finances through improved budgetary discipline.
However, as recommended in the Commission’s second report, in order to monitor the
implementation and delivery of agreed savings measures across key central agencies, a small,
independent body – the Sustainable Budget Oversight Unit should be established. The prime
responsibility of the Unit would be to monitor the progress of key agencies and to proactively make
recommendations to Government in relation to delivery of agreed savings.
10
2015-16 State Budget
May 2015
BUSINESS SA
The Unit should be appropriately resourced to carry out its responsibilities, but could also utilise
outside experts to assist as and when required. Furthermore, to drive compliance with agreed savings
measures and in the interest of transparency, the Unit’s reports and recommendations should be
made publically available.
Environment & Sustainability
10. Align the existing waste levy with recurrent funding requirements of Green Industries
SA.
Zero Waste SA was funded through the Waste to Resources Fund. The Waste to Resources Fund is
a fund comprised of 50 per cent of the revenue collected from the solid waste levy.
The solid waste levy is used in part to fund programs such as waste minimisation, resource recovery
and KESAB litter strategies. It is also used to support the Environment Protection Authority (EPA) in
administering the Environment Protection Act 1993, including licensing, waste tracking and
compliance.
Business SA understands from the 2014/15 Budget that the total net assets of Zero Waste SA
increased by $14.6 million, primarily due to an increase in cash deposits held by the Waste to
Resources Fund.
Green Industries SA was allocated $9.0 million over three years in the 2014/15 State Budget to
replace Zero Waste SA. While its predecessor had operated with an annual budget of $7.4 million,
Green Industries SA received a sharp funding cut yet has been tasked with additional roles and
responsibilities above those required of Zero Waste SA.
South Australia’s solid waste levy is forecast to increase from $52 a tonne in 2015 to $62 a tonne in
2016-17. While this increase will have a flow on effect to the cash reserves held in the Waste to
Resources Fund, it is very important that all monies in the Waste to Resources Fund are used to fund
Green Industries SA and to support innovation and improvements in South Australia’s waste industry.
Business SA is concerned that while business will continue to pay more for the solid waste levy, that
the actual funding for Green Industries SA and associated waste industry initiatives will decrease.
All the funds in the Waste to Resources Fund must be used to support improvements in waste
management in South Australia. If all the funds are not required, as indicated by the State
Government’s decision to reduce funding to Green Industries SA, then consequently businesses
should be provided relief via a reduction in the solid waste levy.
Through our own analysis of the solid waste levy, even allowing for the same revenue to accrue to
parties other than Green Industries SA, including the Environmental Protection Authority (EPA),
Green Industries SA should only require $10.50 per metric tonne compared with the $26 per metric
tonne required by Zero Waste SA. On this basis, the proposed 2015/16 solid waste levy should be
reduced from $57 per metric tonne to $41.50 per metric tonne for metropolitan areas, with a
comparative adjustment made for non-metropolitan areas.
11
2015-16 State Budget
May 2015
BUSINESS SA
Public Sector Reform
11. Reduce the period an “excess” worker can remain in employment from 12 to a
maximum of 3 months.
Business SA recognises the importance of cost-reflective delivery of public services to cater for the
various needs of the community, particularly when those needs cannot be met by the private sector
alone. However the South Australian public sector has been growing at an unsustainable rate with
employee expenses now over $7.4 billion and rising.
Between 2002 and 2014, general government sector employment in South Australia increased by
28.0%, while total employment increased by only 15.3%. As at December 2014 there were more than
81,100 full time equivalent employees (FTEs) in the South Australian general government sector, an
increase of over 1,300 in the past three years alone.
In our 2014 Charter, Business SA recommended the State Government abolish permanent tenure to
provide adequate flexibility for Department and Agency heads to realise efficiencies within the public
service.
There is simply no convincing rationale as to why public servants should be provided lifelong
employment and why public servants are excluded from the employment and management practices
that apply to the rest of the State.
Business SA welcomed last year’s decision by the State Government to abolish permanent tenure in
the public sector. However, the fact that so called “excess” workers will still remain in employment for
a minimum of 12 months is completely out of step with practice in the private sector. If a worker’s
position is no longer required in the private sector they are made redundant and paid appropriate
entitlements. The fact that they are paid redundancy entitlements enables them the time and
opportunity to prepare for and seek alternative employment.
There is no rational argument for why a public servant should remain in employment at the taxpayer’s
expense once their actual role is made redundant. It is highly unlikely that a redundancy in the public
sector would come without a substantial notice period allowing time for an employee to prepare to find
their next employment opportunity. Furthermore, statutory redundancy entitlements afford additional
assistance in the re-employment process, particularly where impacted workers may find it difficult to
find suitable re-employment within a short timeframe. Keeping “excess” workers employed for any
period is unacceptable and at the very least, this period should be reduced from 12 to a maximum of
3 months.
12
2015-16 State Budget
May 2015
BUSINESS SA
Tourism
12. Increase the existing funding level of the Adelaide Convention Bureau to $5 million per
annum.
The State Government allocated approximately $400 million to the redevelopment of the Adelaide
Convention Centre back in 2010. Stage one of the re-development has recently been completed and
works are advancing on stage two which will replace the existing Plenary Building (home of the
original Convention Centre constructed in 1987) and is due to be completed by 2018.
Stage 1 of the redevelopment is an impressive addition to South Australia’s convention and tourism
offering and has already attracted significant interest which has been reflected in a steady stream of
future bookings. However, given the significant capital investment made, the State Government,
through its Tourism Commission, needs to increase funding to the Adelaide Convention Bureau to
further capitalise on the opportunities presented by the redeveloped Convention Centre.
The expanded Convention Centre is part of ongoing works to revitalise the Riverbank precinct which
has already been significantly enhanced through construction of the South Australian Health and
Medical Research Institute (SAHMRI), the redeveloped Adelaide Oval & associated footbridge and
the soon to be completed Royal Adelaide Hospital. These projects are also spurring private
investment in hotels and the adjoining casino and it is important that the Adelaide Convention Bureau
is adequately funded to ensure a continued stream of conferences is maintained. $1 million per
annum is an inadequate investment in such a critical organisation to increasing South Australia’s
tourism revenue.
Business SA acknowledges the State Government’s 2014/15 investment into the Convention Bid
Fund, but there still needs to be an appropriate level of ongoing investment in the organisational
infrastructure which is required to appropriately market and position South Australia to attract more
conferences.
The Adelaide Convention Bureau also plays an important role in attracting conferences to regional
South Australia and it is important that future marketing activities driven by the State Government are
coordinated to ensure a consistent message between organisations such as Events South Australia
and the Adelaide Convention Bureau. Furthermore, with limited funds available to attract tourism, it is
critical that any State Government funding does not result in multiple organisations duplicating one
another’s efforts.
13