Thank you, Stephen, for that introduction, and thank you for inviting me to speak again my third time as Finance Minister.
As always, I appreciate the opportunity to provide my thoughts on the political and economic year ahead, particularly for South Australia.
The economic outlook in 2013 continues to be both complex and dynamic.
Much has changed since I spoke here last year, but much has also stayed the same, as economic transitions continue to present challenges for business and governments alike.
While recent fiscal crises in Europe and the US have so far been avoided, significant structural issues remain unresolved.
We see global growth prospects being lowered and unemployment remaining unacceptably high in many developed economies.
Yet, while western economies face significant challenges to growth, Asia provides boundless opportunity opportunity to make the Asian Century, the Australian Century.
Unlike many countries in 2013, Australia has the capacity to shape our own future; to determine our destiny and secure our success. The opportunities are there for the taking.
But we should never forget that geography is only an advantage, not a guarantee.
To succeed we need a positive plan for the future.
A plan focussed on setting our economy up for the future. A plan that charts the course for strong, competitive industries and that secures jobs.
For business, this demands innovation and adaptability to respond to the global economy and to grow market share. It requires collaboration and investments in new technologies.
For government, it means getting the economic settings right and laying the foundations for long term growth.
And, for both business and government, it requires an understanding of the reform imperative and the need to continually prepare our economy for tomorrow.
It also requires an informed debate.
With an election date set, many think that policy will give way to politicking indeed, some would prefer it to be so.
But this couldnt be further from the truth for our Government.
The Gillard Government is putting forward our plans for the future; from the Innovation and Industry Statement announced on Sunday by the Prime Minister, to the National Disability Insurance Scheme and reforms to school funding.
Indeed, in a time of such economic change, it would be a disservice to future generations if we accepted a debate limited to slogans and platitudes.
Australians deserve a political debate with substance.
Sadly, the distance between where the political debate is and where it should be remains great.
Of course, there will always be a misalignment between electoral cycles and the timeframes for reforms this is to be expected.
But at a time when the challenges and opportunities before our country couldnt be larger, there are days when the debate could barely be smaller.
Some politicians have tapped into this for their own gain.
Those light on policy seek political advantage in narrowing the debate, and they try to shift the focus from the important to the sensational.
But, with this narrowing of the debate has come a narrowing of perspective. Small thinking locks public debate in the immediate or worse, in the past.
And when small minded politics is the default response to big reforms, uncertainty is exploited; seeds of fear are sown.
Reform agendas are cast as threats to our economic future, and the economic debate is skewed by mistruths and incorrect claims.
This political tactic is less than Australians deserve and less than the nation needs.
There are great risks in failing to properly understand where we are placed in the world and equally where we want to be.
We are living through a period of significant global economic change and, as economic power shifts from West to East, failure to have a plan for the future is a real threat to our prosperity.
This global realignment is being accelerated by poor growth prospects in western countries.
Just last week we learned that both French and German economies contracted in the last quarter of 2012, dragging the EU further into recession. And unemployment remains stubbornly high in the United States at 7.9 per cent.
As the Prime Minister noted last week, there are over 12 million people unemployed in America, which is roughly the same size as our entire labour market.
As an open economy, we are shaped by global forces, and the shifting global landscape a transition that is gradual, but powerful is reflected in the uneven experiences in the Australian economy.
Indeed, Australia sits at the crossroads of the global economy, a position which partly explains our recent economic experience.
We are experiencing declines in old markets while new markets boom.
In a diverse economy such as South Australias, we are seeing these impacts playing out.
In many ways, South Australia is emblematic of the broader Australian experience. It reflects our resilience in times of significant change.
Trade exposed industries here in South Australia have felt the brunt of a high dollar.
Exports for wheat and minerals are robust, while a number of other sectors are doing it tough.
But, while there are those outside SA who may think our outlook is less bright than others, there is much I am positive about.
In absolute terms, our state economy is 7 per cent larger today than it was in 2007-08.
Unpacking the aggregate performance further demonstrates our resilience.
In per capita terms, South Australia has outperformed the big States with Gross State Product per capita up 3.2 per cent since 2007-08. This is over a half percentage point greater than New South Wales, and almost four times stronger than Victoria.
And, over the last two decades, the average annual growth in SA exports volume was 5.5 per cent well above the national average of 4.9 per cent and better than all jurisdictions except for WA.
This demonstrates the underlying productiveness and competitiveness of South Australias economy, and our people.
We are competitive. We are punching above our weight.
This is reflected in business investment which rose 9.8 per cent over the year to the September quarter 2012.
As South Australians we have much to be proud of.
While our economic tale to this point has been one of resilience, we are positioned to grow strongly in the future.
Our future is bright. Or, more importantly, we can make it so.
Thats why the Government has a plan to grow jobs and support business.
A plan that will directly benefit South Australia; a plan that will underpin our future.
Against the backdrop of a resources boom, a high Australian dollar and the growth of Asia, its important we look at what needs to be done to support jobs and business in Australia today, both domestically and abroad.
Thats why the Industry and Innovation Plan announced this week supports Australian firms to win more work here at home, and encourages businesses to use locally produced goods and services.
Our plan supports Australian industry to increase our exports and win greater shares of overseas business.
And our plan will back Australian businesses to grow and to create jobs of the future.
Central to the strategy is establishing Industry Innovation Precincts to foster innovation through collaboration. These facilities will become catalysts for a smarter economy.
I am proud to say that part of one of the announced precincts will be based here in SA.
Focussed on defence manufacturing, the precincts presence in Adelaide will leverage our strengths today for a prosperous future.
We are already building and maintaining both Air Warfare Destroyers and Collins Class submarines and attracting multi-million dollar contracts from overseas, and with this new investment, we will be able to further grow this sector.
Our investment will enable firms to seek out new opportunities to grow their market share, innovate and utilise new technologies and tap into the countrys best minds to take their business forward.
The Government will also expand the Innovation Investment Fund program to provide additional money in new venture capital. Because we understand the difficulties faced by Australian SMEs in accessing funds.
It is a plan designed to build on our existing strengths to help industries adjust to the structural change occurring in our economy.
It is a plan built on our strong track record of responsible economic management, and getting the macroeconomics settings right.
The benefits of our plan are real and tangible for South Australia, and it continues this Governments approach to industry.
Take car manufacturing for example, an industry that a quarter of million Australians rely on for jobs, many right here in South Australia.
As Holdens Managing Director Mike Devereux has said, Holden would not be able to do business in Australia without the Australian Government ... investing along with the auto industry.
Our position stands in stark contrast to the Opposition who has no manufacturing policy beyond cutting support to the sector.
The contrast is as simple as it is devastating for every South Australian.
Where Labor sees strength in our manufacturing sector, the Opposition sees wasted money.
South Australia has world-leading defence manufacturing capabilities which this Government wants to support and build on. Thats why we have committed to building 12 submarines, to be assembled here in SA.
The Opposition, on the other hand, says this work should be sent offshore.
Make no mistake. An Abbott Government would result in the loss of jobs, the flight of high skilled workers and would knock South Australia off our growth path.
We need to lift our states prospects, not knock it down.
For political parties, policies are an expression of values, an articulation of the future we see for Australia.
When it comes to the economy, the choice is clear.
For Labor, our economic approach is underpinned by our values of fairness and opportunity for this generation and those that follow.
It flows from a seemingly simple question: What type of economy do we want for the future and why?
A simple question with complex answers.
For our Government and for me personally, the answers are framed by the highest of aspirations for our childrens generation.
They demand a plan that is informed by our collective values; to foster job security and strengthen families, to bring our communities closer together.
A plan that is grounded in the future we want for Australia.
A plan which sees our future economy as flexible and adaptable, built on the capacities of our people and the innovation of our businesses.
But we also need to stop and ask why?
We need to look through the figures for the purpose. Why do we strive for a strong economy?
Put simply, economic growth is a means to an end. The purpose is to build a strong community and to deliver a fairer society.
This approach typified our response to the global financial crises.
We knew that protecting jobs was paramount and thats why we stepped in and kept more than 200,000 Australians in work.
It was these actions that now mean we are well-placed for growth, rather than still picking up pieces of the crisis as other advanced nations are.
It means we are able to pivot towards growth in the Asian Century, rather than watch it pass us by.
For every economic frame, there is an underlying purpose: the social why, to the economic what.
So, when we speak of an adaptable workforce, we mean improved labour productivity and continuing innovation.
We mean workers secure in jobs.
We are speaking about Australian workers confident that whatever turn the world economy takes, they will be able to adapt.
We want workers to be sure enough of their skills and training to see opportunity in change; confident that they will continue to be able find a good job and provide for their family.
When we speak of innovation, we mean the right mix of labour and capital to make firms smarter and more productive; achieving higher outputs for similar levels of inputs.
When we speak of innovation, we mean turning the next good idea into a great product; and for that product to see the firm turn a profit.
We mean firms creating the new jobs that will see the current and future generations of Australians in work firms using new technologies to grow their market share, to produce new goods and to broaden the marketability of our services.
We want jobs that are highly paid, and we want jobs that are here in Australia.
And, when we speak of flexibility, we are recognising that work will be increasingly online, underpinning a workforce that will be able to respond quickly to the new economy.
We are speaking about how investments like the NBN mean that after generations of people moving for employment, technology will increasingly allow work to move to people.
We mean more time at home with our family through teleworking and less time in transit or away travelling.
We want to ensure that the family and social bonds that underpin our society are not broken as a result of economic shifts, and that the strength of our local economies is underpinned by our access to the global economy online.
The Government has a clear focus on the future economy.
An economy that provides security and confidence to modern Australian families, and one that underpins resilient communities.
I am a proud South Australian; proud of my home state, and I see a bright future before us.
I look at how our businesses and communities have changed and grown since I moved here in 1977.
In my lifetime South Australias manufacturing base has responded to change, and grown.
I look at how we have continually adapted, and it gives me great confidence in our economic future.
But there is no autopilot when it comes to creating jobs and growth.
We business and governments alike must work together to secure our future.
That is why the Prime Minister announced the Innovation and Industry statement.
That is why we are building the NBN and investing in schools and universities.
We are backing our strengths.
We are lifting our eyes to the future.
Our plans will deliver the future economy we need to deliver the Australia we aspire to for the next generation.
We are positioning Australia and South Australia to take full advantage of the opportunities in the Asian Century.
ENDS