South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game
In a tumultuous past fortnight, bedrocks of the state economy, employing thousands of people, have been plunged into doubt.
Santos, the state's biggest company by far, is the target of an almost $30bn takeover bid by an Abu Dhabi raider, casting great uncertainty over the future of its Adelaide head office.
The $368bn nuclear-powered submarine project centred on Adelaide is under threat from a 30-day United States review assessing its alignment with President Donald Trump's America First agenda.
Despite some heartening rain, the drought continues to ravage the state's farms – SA primary industries generate $17.1bn annually.
State debt was forecast to soar to $48.495bn in the state budget unveiled on June 5, after which the influential S & P Global Ratings warned big new spending ahead of next March's state election could trigger a credit rating downgrade.
The purse strings will continue to be tested by the Whyalla steelworks and mine, as the budget set aside $384m in state and federal funds for a potential six-month extension of the state-induced administration.
The Malinauskas government might have repeatedly ruled out an ownership stake in Whyalla's steelworks but a $2.4bn state/federal rescue package leaves both on the hook until a new owner is found.
Public sector unions are restless. The SA Salaried Medical Officers Association on Thursday rejected a 10 per cent pay rise over three years and recommitted to walking off the job on Wednesday.
These are extraordinary and foundational challenges, of varying degrees of concern, to the state economy and, most particularly, the potential for today's aspirational young South Australians to find well-paid, challenging jobs.
The risk of Santos's head office leaving Adelaide should not be dismissed lightly. A foreign takeover, as my colleague Giuseppe Tauriello observed on Wednesday, would significantly diminish the last corporate heavyweight left standing in South Australia.
Santos dwarfs other SA companies for jobs, investment, sponsorship and general corporate clout. It is four times the size of the state's second biggest firm, Argo Investments, and more than eight times the size of third-ranking Codan.
Business success matters in a state where the population is overwhelmingly concentrated in the capital, and most jobs are underpinned by state and federal government spending of some form.
Santos and partner Beach Energy in January officially opened a nation-leading Moomba carbon storage project, billed as kickstarting a $600bn industry and hailed by Premier Peter Malinauskas as a 'historic day for our state'.
Mr Malinauskas responded to the Santos takeover bid by declaring his government's 'priority at all times is to ensure that South Australian jobs remain in South Australia, and to maintain Santos' headquarters in Adelaide'.
This will be a test of his government's mettle and resolve, along with its legislative levers that include ministerial approval for a change in controlling interest of a petroleum resources licence holder, like Santos.
Opposition Leader Vincent Tarzia, in his Tuesday budget reply speech, predictably painted a bleak picture of a state ravaged by debt, skyrocketing costs, unaffordable homes and a floundering health care system.
Nine months out from the next state election, he vowed to deliver a 'debt management plan' to ensure this was at 'a sustainable level'.
Mr Tarzia declared the state was 'at a crossroads'. He was right, although the future is always uncertain.
Mr Malinauskas has a strong story to tell on economic confidence, a historically low jobless rate and the state's standing in the nation. But he will be justifiably wary of overconfidence ahead of the state election, even if his opponents are at a historically low ebb in their standing.
The state is facing some serious challenges and the Premier will need to be at the top of his game.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
an hour ago
- News.com.au
‘Rural Tasmania': Tasmanian Nationals rule out Coalition with state Liberal Party just days ahead of election
The Tasmanian Nationals have confirmed they will not enter a Coalition agreement with the state Liberal Party, just days ahead of voters heading to the ballot box. Tasmanians will vote on July 19 for the fourth time in seven years, after a snap election was called following a no-confidence motion was granted. But the Tasmanian Liberal Party has now suffered a major setback – with the Nationals ruling out speculation they will automatically help Jeremy Rockliff in his bid to remain as Premier. Nationals candidate for Lyons John Tucker said he wanted to clear up any voter confusion ahead of next week's election. 'The Tasmanian Nationals do not have any agreement for a Coalition, nor supply with the Tasmanian Liberals. Any suggestion otherwise is simply false.' Mr Tucker said. Miriam Beswick and Andrew Jenner also say neither they, nor the Tasmanian Nationals, were locked in to provide support to the Tasmanian Liberals for the next term of parliament. 'I want to assure the voters in Braddon, as well as in Bass and Lyons, should any party find themselves in a position to form a minority Government, we will only discuss these matters once the whole picture has become clear.' Mrs Beswick said. Mr Jenner reiterated he would 'not offer support or supply' to 'another Mr Rockliff-style Liberal government' without a shift in their approach for the state's rural areas. Last month, Mr Rockliff lost a no-confidence motion by just one vote after two days of fiery debate – sparking a move to dissolve the parliament. Governor Barbara Baker granted approval for the election a day after Mr Rockliff made the request in order to end the state's political deadlock. She said she was 'satisfied that there is no real possibility that an alternative government can be formed'. In a statement, released in June, the Governor said she would dissolve parliament and issue the writ for an election on July 19. 'Notwithstanding the recent 2024 election, the public interest in avoiding the cost of another election and the prevailing public mood against holding an election, I have granted Premier Rockliff a dissolution,' Governor Baker said.
ABC News
2 hours ago
- ABC News
Aussie jobs on agenda for PM's China trip
Prime Minister Anthony Albanese is preparing to meet with China's leaders over a six-day trip, which he says he'll use to boost economic ties and build job opportunities for Australia.
Daily Telegraph
3 hours ago
- Daily Telegraph
Australia's outer suburbs beat city bling in property price boom
Forget the harbour views and inner-city lattes, the real Aussie property boom is happening in the bush and beyond. New figures reveal a ripper surge in house prices in regional and outer-city suburbs, leaving city slickers green with envy. The latest PropTrack report shows a whopping 39 suburbs across the nation have seen their property values skyrocket by more than 10 per cent in just three months. Murray Bridge in South Australia takes the crown with an eye-watering 18 per cent jump in unit prices – the biggest increase in the entire country. Meadowbrook in Queensland's Logan-Beaudesert region and Murwillumbah in NSW's Richmond-Tweed rounded out the top three. Other top performers include Chidlow in WA, Menangle in Sydney's outer south, and Griffith in the NSW Riverina. Deagon, Ascroft and Home Hill are also enjoying the boom. Here's a closer look at how our key states are performing. NEW SOUTH WALES Home prices have been growing at three times the rate of inflation in many parts of Sydney as interest rate cuts from earlier in the year continue to usher in more property buyers into the market. The biggest rises have been observed in some of the most affordable unit markets, with the rate cuts launching a scramble for the cheapest real estate deals near major commuter hubs. Units in Ashcroft, Wahroonga, Belrose, Cartwright and Sadlier all jumped by 10 per cent or more in just three months, as affordable pockets under the city's lofty median price of $1.182m captured buyers. Read the full story here. QUEENSLAND Sixteen suburbs have joined the $1 million-plus club in the past three months as Queensland's red hot property market shows no signs of slowing down, with the state now home to 299 locales with seven-figure median home values. PropTrack's June Quarterly Home Index shows that median house values have now hit seven figures in once affordable suburbs right across Brisbane, Moreton Bay, Logan-Beaudesert, Ipswich, the Gold Coast and Sunshine Coast, and Toowoomba. Each one saw their median house value edge over $1 million in the three months to June. It comes after PropTrack revealed that Brisbane now has a $1 million median price tag (houses and units combined), finishing the month of June at $1.015 million – an increase of $74,800. And the data shows that there are 10 suburbs with median home values above $2 million, with Chandler leading the pack with$3,149,155. Tennyson is the most expensive unit market with a median value of $2,104,972. Read the full story here. TASMANIA Elections don't tend to be great news for property market growth, but they couldn't stop Hobart's green shoots from popping up. Exclusive June quarter PropTrack figures show 38 out of 56 greater Hobart suburbs recorded median house price growth, despite a federal election and the announcement of a state election. The 38 growth areas far outstripped the seven suburbs with a declining median value and the 11 that sat unchanged from the previous quarter. Eastern Shore lifestyle suburb Sandford was the top-performing area with a 4 per cent increase over the three-month period. Read the full story here. VICTORIA Melbourne's property market has been tipped to reach a record high by Christmas after a rise in home values across hundreds of suburbs. Across the June quarter, Melbourne's top suburbs for median house price growth of between 4 to 5 per cent included Glen Huntly (with a new $1,507,058 median), Wandong ($871,817), Braeside ($1,530,522), Williamstown North ($1,143,023) and Frankston North ($603,715). For purchasers seeking a smaller residence, Wallan in Melbourne's outer north performed best for units with median prices zooming up 10 per cent to $483,070. In regional Victoria, houses in the East Gippsland town of Orbost increased 8 per cent to hit $350,875 and Castlemaine units soared 9 per cent to $647,860. Read the full story here. SOUTH AUSTRALIA South Australia's property boom is showing no signs of abating, with house values in more than 250 areas and unit values in another 78 recording double-digit growth over the past year. New PropTrack figures reveal some suburbs and towns even managed to crack the 20 per cent growth threshold over the 2024-2025 financial year. Unit values in Everard Park had the highest growth at 25 per cent, taking the estimated median value to $628,794. Salisbury North units followed closely behind, with its estimated median value rising 24 per cent to $546,698, while Elizabeth South and Waikerie house values both rose 23 per cent to $543,354 and $386,100 respectively. Read the full story here.
