A cut in funding for tourism marketing in South Australia will thwart the growth of the industry, says advocacy body the Tourism & Transport Forum.
Ken Morrison, chief executive of the national group, said the 2014 state budget released yesterday “robbed Peter to pay Paul”, with marketing funding reduced by about $4 million to cover an increase in support for tourism development and events.
About $50 million is allocated to the South Australian Tourism Commission (SATC) in the budget, slightly down on the budgeted figure for 2013-14.
“It is disappointing to see support for tourism cut in the South Australian budget when the industry presents a real economic development strategy for South Australia, especially as mining investment and heavy manufacturing continue to decline,” he said.
“Tourism already supports a total of 54,000 jobs across South Australia and contributes $5.0 billion a year to GSP, and additional investment will help the industry to grow, offering more job and business opportunities.”
Business SA welcomed the fact the budget maintained existing tax concessions, such as the temporary payroll tax exemption for small business, and didn’t contain any new or increased direct taxes for businesses.
You might like
CEO Nigel McBride said other positives for business included promised savings of $180 million from WorkCover reforms and the commitment to infrastructure spending such as the north-south corridor. However, the increased emergency services levy would affect some businesses.
“In any budget, the devil is in the detail and we will be analysing the budget over the coming days,” McBride said.
As previously announced, the 2014 budget included $60 million over five years for the State Government’s “Our Jobs Plan” to help workers and businesses following the closure of Holden in South Australia.
The Agribusiness Accelerator Program will get $6 million over four years, and $10 million is earmarked for a regional jobs accelerator fund in 2014-15.
There will be new training places in the Skills for All program, at a cost of $63 million over three years, plus $600,000 in new spending over four years for employment and training organisation Don’t Overlook Mature Expertise (DOME).
The budget also contained a number of wins for the resources sector, including $4 million for the extension of the PACE program, an extra $4 million for the Mining and Petroleum Services Centre for Excellence, $32.2 million for a new State Drill Core library and $4 million to build an airstrip at Innamincka for oil and gas explorers.
Stay informed, daily
But South Australian Chamber of Mines and Energy CEO Jason Kuchel told ABC radio this morning he was disappointed the budget did not include more money for infrastructure.
“In terms of bringing jobs to South Australia now, it is very important that the government plays a much more significant role in infrastructure,” he said.
While royalty payments for unconventional gas will be deferred, the Extractive Minerals Royalty rate will be increased from 35 cents per tonne to 55 cents per tonne.
Among the controversial features of the state budget is the State Government’s plan end the Motor Accident Commission’s monopoly on offering compulsory third-party insurance by allowing private operators into the market from June 30, 2016.
The RAA said today it opposed the move, which it believes will impact on the fairness of the scheme.
“If private players come into the market, they will need to make a profit,” said Penny Gale, general manager public affairs. “This means insurers are likely to clamp down on claims, which will have serious consequences for the health and recovery of people injured in a motor vehicle crash.”
She said the association believed the government could find the necessary funds to improve roads without privatising compulsory third-party insurance, but said if the plan did go ahead, “RAA would have no option commercially but to enter the market”.
