South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game
South Australia's foundations are being shaken by global and natural forces, with tempestuous times ahead.
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
15 minutes ago
- News.com.au
Closing Bell: ASX arrests slide to fall just 0.2pc as utilities sector leads recovery
ASX pulls back from 0.55pc slide to dip 0.21pc Utilities leads recovery, up 0.74pc ASX All Ord Gold index climbs 0.62pc ASX pulls out of tailspin to make up ground While the ASX closed lower today, down 0.21%, it was looking a lot worse around lunchtime, when the bourse was 0.55% in the red. The market managed to put the breaks on its slide, with the utilities (+0.74%) sector in particular providing support, followed by industrials, health care and info tech. Standouts in those sectors included Dimerix (ASX:DXB) up 9.8%, ZIP Co (ASX:ZIP) adding 5.9%, Droneshields (ASX:DRO) up 5.6% and Fluence Corporation (ASX:FLC) jumping 13.8%. The ASX All Ord Gold index (+0.62%) also put in some work, alongside the Small Ords (+0.19%). The ASX lost 0.49% over the last five trading days, now sitting 1.55% off its 52-week high. ASX SMALL CAP LEADERS Today's best performing small cap stocks: Security Name Last % Change Volume Market Cap PV1 Provaris Energy Ltd 0.015 50% 3831208 $6,980,013 E79 E79Goldmineslimited 0.028 40% 2009033 $3,168,253 MOH Moho Resources 0.004 33% 5000 $2,236,242 RNX Renegade Exploration 0.004 33% 521227 $3,865,090 HAW Hawthorn Resources 0.068 28% 634353 $17,755,827 BMO Bastion Minerals 0.002 27% 22379119 $1,419,960 NSB Neuroscientific 0.078 26% 991242 $8,965,502 ALM Alma Metals Ltd 0.005 25% 807408 $6,345,381 AUK Aumake Limited 0.0025 25% 176755 $6,046,718 CUL Cullen Resources 0.005 25% 183700 $2,773,607 FIN FIN Resources Ltd 0.005 25% 100000 $2,779,554 GGE Grand Gulf Energy 0.0025 25% 1458526 $5,640,850 JAV Javelin Minerals Ltd 0.0025 25% 651325 $12,252,298 MEM Memphasys Ltd 0.005 25% 1004099 $7,934,392 HCL Highcom Ltd 0.295 23% 641196 $24,643,841 HAR Harangaresources 0.065 20% 4915026 $11,585,428 MCA Murray Cod Aust Ltd 1.045 20% 124393 $92,023,850 AJL AJ Lucas Group 0.006 20% 356600 $6,878,648 TON Triton Min Ltd 0.006 20% 2099975 $7,841,944 HIQ Hitiq Limited 0.02 18% 3191499 $6,885,382 BAS Bass Oil Ltd 0.027 17% 2429874 $7,345,899 AHN Athena Resources 0.007 17% 6103136 $13,595,742 BGE Bridgesaaslimited 0.014 17% 61111 $2,398,310 NAE New Age Exploration 0.0035 17% 50877 $8,117,734 PGY Pilot Energy Ltd 0.007 17% 4218242 $12,951,960 Making news… Hydrogen compression and shipping solution company Provaris Energy (ASX:PV1) has teamed up with global shipping leader 'K' LINE. K LINE, otherwise known as Kawasaki Kisen Kaisha, will provide technical, commercial and operation support, offering its extensive global shipping expertise as PV1 develops its hydrogen transport and storage model. PV1's main focus is the proprietary H2Neo Carrier and H2Leo Barge, which offer a combination of offshore compression, storage and shipping solutions for hydrogen gas transportation. Bastion Minerals (ASX:BMO) has tapped John Ribbons as company secretary, effective immediately. The appointment follows the resignation of Justin Clyne, who exits on good terms with the board and will make himself available during the transition. Ribbons will fill dual roles, as he already holds the position of chief financial officer for BMO as well. ASX SMALL CAP LAGGARDS Today's worst performing small cap stocks: Security Name Last % Change Volume Market Cap RPG Raptis Group Limited 0.044 -73% 2637660 $56,109,577 CT1 Constellation Tech 0.001 -50% 1542725 $2,949,467 BCB Bowen Coal Limited 0.18 -49% 2933425 $37,715,145 BEL Bentley Capital Ltd 0.008 -33% 7852 $913,535 ENT Enterprise Metals 0.002 -33% 2756 $3,543,952 FTC Fintech Chain Ltd 0.002 -33% 530785 $1,952,309 PKO Peako Limited 0.002 -33% 2925298 $4,463,226 RLC Reedy Lagoon Corp. 0.001 -33% 135000 $1,165,060 SHP South Harz Potash 0.002 -33% 310000 $3,308,186 ADD Adavale Resource Ltd 0.0015 -25% 186313 $4,574,558 AFA ASF Group Limited 0.003 -25% 79842 $3,169,590 ASR Asra Minerals Ltd 0.0015 -25% 577297 $7,983,396 EEL Enrg Elements Ltd 0.0015 -25% 16582818 $6,507,557 VFX Visionflex Group Ltd 0.0015 -25% 199999 $6,735,721 HPC Thehydration 0.01 -23% 4074374 $4,982,912 WEC White Energy Company 0.035 -20% 212 $13,711,276 EXT Excite Technology 0.008 -20% 2685646 $20,726,419 MTB Mount Burgess Mining 0.004 -20% 409514 $1,758,513 OEL Otto Energy Limited 0.004 -20% 3458960 $23,975,049 SKK Stakk Limited 0.004 -20% 5016 $10,375,398 VRC Volt Resources Ltd 0.004 -20% 1463043 $23,423,890 ODY Odyssey Gold Ltd 0.019 -17% 5122049 $20,674,036 GUL Gullewa Limited 0.068 -17% 420322 $17,877,818 HMG Hamelingoldlimited 0.069 -17% 66142 $16,340,625 AMS Atomos 0.005 -17% 1700232 $7,290,111 In the news... Bowen Coking Coal (ASX:BCB) has signalled it's considering placing the Burton Mine Complex operation into a temporary pause if an effort to transition the project to an owner-operator model is unsuccessful. The company is exploring a range of options to fund the transition plan and provide immediate liquidity, but the most recent Resources and Energy Quarterly forecasts falling demand for met coal as low emissions steel production gains pace. Atomos (ASX:AMS) has launched a new employee incentive plan, with over half of the company's roll to be offered defined annual bonuses linked to share price performance. AMS says the incentives are a way to recognise the contributions of staff who worked tirelessly on minimal salaries over the last few years, and aligns employee interests with those of shareholders. IN CASE YOU MISSED IT Pure Hydrogen Corporation (ASX:PH2) has completed the handover of a Taurus hydrogen fuel cell prime mover to Barwon Water, Victoria's largest regional urban water corporation. Legacy Minerals (ASX:LGM) has wrapped up its first drilling campaign at the Thomson project, intersecting wide zones of quartz-sulphide mineralisation. Cyclone Metals' (ASX:CLE) power study has highlighted potential to power the Iron Bear project entirely with renewable energy. TRADING HALTS AIC Mines (ASX:A1M) – cap raise betr Entertainment (ASX:BBT) – off-market takeover offer for PointsBet GBM Resources (ASX:GBZ) – cap raise and board changes Great Boulder Resources (ASX:GBR) – cap raise New Murchison Gold (ASX:NMG) – Crown Prince project approvals update Victory Metals (ASX:VTM) – strategic alliance and funding facility Zenith Minerals (ASX:ZNC) – resource update for Dulcie Far North gold project LAST ORDERS Hillgrove Resources (ASX:HGO) is ahead of schedule on development efforts at the Nugent underground, hitting the orebody at the Kanmantoo copper mine earlier than expected. It's the first development ore produced at the Nugent underground operation, marking an important milestone toward formal ore production.
ABC News
26 minutes ago
- ABC News
Nationals MP Anne Webster drops request for protection orders against One Nation supporter
National Party MP Anne Webster and her husband Philip Webster have dropped a request for personal safety intervention orders against a One Nation supporter after an altercation at a Mildura car show. The Mildura Magistrate's Court put interim orders in place in April barring One Nation supporter Dean Lampard from contacting or approaching the Websters until Mr Lampard could obtain a lawyer. On Friday, the Victorian Solicitor General's Office dropped the application, saying it was unlikely to be approved. Magistrate Patrick Southey told the court Mr Lampard had made "nonsense" allegations against the Websters of corruption and paedophilia. "[They] were offensive, defamatory, crackpot, conspiracy theory allegations that hold no basis whatsoever," Magistrate Patrick Southey told the court. "If there was any shred of truth, [Anne Webster] wouldn't be a Member of Parliament and [Philip Webster] wouldn't be a doctor." Mr Lampard's lawyer Jamie Griffin said there was no evidence to suggest Mr Lampard's allegations against the Websters were "crackpot" or "conspiracy theory'. The court heard Mr Lampard made the accusations against the Websters when he went to Anne Webster's Mildura office on March 1. The court heard on that occasion, she did not like what was said by Mr Lampard and asked him to leave. Six weeks later, on Good Friday, Dr Webster's husband approached Mr Lampard at a car show with two of her staff and a security guard. Mr Griffin previously told the court there was "a conversation and pushing and shoving", with Mr Webster shoving Mr Lampard. He said there were no allegations of assault or threats by his client at the car show, and that he left of his own accord. "How can it be said that Mr Webster has any fear at all when he approaches my client, assaults my client, and my client leaves?" he asked the court. The court heard Mr Griffin contested the legitimacy of the interim orders that he described as baseless and without proof of criminal conduct. Mr Griffin told the court he found it questionable that a senior detective at Mildura Police Station brought the application to court in the first place. "It's exceptional that a matter like this, first of all, is prosecuted by a senior detective where there is no crime alleged here," Mr Griffin told the court. "The base of the claim is that there is a chance Mr Lampard may, in the future, make some other comment or approach Ms Webster." The media was denied a copy of the affidavit supporting the allegations made by the Websters against Mr Lampard because "it was protected information". Magistrate Southey told the court he believed the application for the interim orders had been made in good faith, despite them being withdrawn. "Is that largely because it's unlikely you can prove there is an ongoing likelihood of misbehaviour, is that the reason?" Magistrate Patrick Southey asked the lawyer for the Websters. Solicitor for the government, Nadia Deltondo, replied, "There are a number of reasons that unfortunately I can't answer." An application to have the Websters pay Mr Lampard's court costs was refused. Dr Webster retained the seat of Mallee in the May election with a slight swing toward her, in what is considered a safe seat. She was elevated three weeks ago to shadow minister for regional development, local government and territories and shadow minister for regional communications. The Websters were not in court for Friday's hearing.
ABC News
42 minutes ago
- ABC News
Former MP Daryl Maguire found guilty of giving false or misleading evidence at ICAC
Former Liberal MP Daryl Maguire has been found guilty of giving false or misleading evidence to the NSW corruption watchdog at a hearing in 2018, as it investigated the former Canterbury City Council. Maguire had denied wrongdoing, but prosecutors argued the former member for Wagga Wagga engaged in a "money making exercise" when he allegedly discussed a commission with a local councillor over a multimillion-dollar property deal. He appeared as a witness in Operation Dasha, the Independent Commission Against Corruption's (ICAC) investigation into allegations of corruption against councillors and whether they dishonestly exercised their official functions in relation to planning proposals. During his appearance at the public hearing, Maguire initially denied ever doing business with former councillor Michael Hawatt, or seeking payment for brokering a deal on behalf of a Chinese property developer. Magistrate Clare Farnan on Friday found him guilty of the single charge, following a hearing in the Local Court earlier this year. That outcome was delivered after apparent confusion about listing locations caused the parties to appear before a registrar in a different courtroom, who adjourned the case until September. The Downing Centre's lower level suffered flood damage due to a burst water main on Tuesday, and will remain shut for four weeks on the latest estimates. As a result, dozens of cases have had to be relocated to the nearby John Maddison Tower, including Mr Maguire's matter. When Magistrate Farnan delivered her decision, no media were in the courtroom, and Maguire's barrister Rebecca Gall applied for a non-publication order on the grounds of potential prejudice to a separate upcoming trial. Later in the afternoon, the magistrate put on the record that she had come into court in the morning expecting to deliver judgment. The magistrate said there was nothing "deliberate" about what occurred, and she had gone to "all the trouble I could" to have parties notified yesterday of the impending decision. She denied the application for a non-publication order, after hearing submissions from barrister Dauid Sibtain SC, representing the ABC and Fairfax. Magistrate Farnan said the case had already been the subject of media attention, and the interest of the community in open justice outweighed Mr Maguire's interests in the circumstances. At a hearing in late May, the court was told of intercepted phone calls between Maguire and Mr Hawatt in which the pair discussed the sale of a property on Canterbury Road at Campsie, in Sydney's inner south west. Maguire was recorded saying: "What have you got on your books? What is DA approved?". The pair then discussed the sale of the site of the former Harrison's Hardware store on Canterbury Road, for which a 300 unit development was proposed. Maguire and Mr Hawatt estimated the development to be worth up to $48 million, with Maguire asking: "What's the margin for you?". The court heard Mr Hawatt suggested a margin of between 1.5 and 2 per cent was likely, to which Mr Maguire replied: "1.5 per cent isn't enough divided by two, if you know what I mean." Deputy Senior Crown Prosecutor Phil Hogan argued the two were expecting to make money from the sale and that it would be divided equally between them. "The story that he'd prepared [for the ICAC] was, 'I'd never asked for a dollar, they never offered a dollar, nor would I ask for a dollar,'" Mr Hogan told the court. "The Crown says that statement is demonstrably misleading." Mr Hogan argued the communications between Maguire and Mr Hawatt amounted to an attempt to do business with the expectation they would both make money from that business.
