SOUTH Australian state budgets have rarely offered the state's primary industries sector much excitement and today's was no exception.
The spend on SA's primary industries and regional development portfolio is projected to plummet from $180.2m ($199m actual spend) in 2021-22 to $164.9m in 2022-23.
Even when accounting for a $19m blowout in Primary Industries spending in 2021-22 by the previous government, the new budget for the ag sector is still $15.3m or 8.5 per cent lower than last year's plan.
While the primary industries spend dropped, there were significant new investments in regional health and regional roads.
Primary Industries and Regional Development Minister Clare Scriven said her government were making "serious investments in education, training and skills to deliver jobs for the future."
"In the regions, we are investing in health, roads, the environment, community and mental health services," she said.
The Primary Industries spend amounted to $119.9m (down from $152.3m), while the regional development spend fell from $46.74m to $44.9m.
Budget papers explained that much of that decrease in the overall Primaries Industries and Regional Development expenditure was due to extra spending not budgeted for by the previous government in the 2021-22 financial year.
The Marshall government had budgeted for a $180m spend, but the actual spend amounted to $199m.
Much of that was to deal with fruit fly outbreaks in metropolitan Adelaide and the Riverland, additonal spending on the dog fence rebuild, storm damage and the response to Japanese Encephalitis.
Budget papers also attributed the cut in primary industries spending to the completion of existing state and commonwealth funded programs including the national water grid program, horticulture netting program, and drought support and local economic recovery programs.
The budget also forecasts a $3.8 million saving in "operating efficiencies" from across the Primary Industries and Regional Development department in 2022-23, increasing to $4.6m from 2025-26.
Of the primary industries sub-programs, spending on fisheries and aquaculture ($9.66m to $11.85m), SARDI ($16.84m to $20.46m) and forestry policy ($4.1m to $6.5m) will increase, while spending on agricultural services ($51.5m to $39.6m) and biosecurity ($68.16m to $41.57m) will decrease significantly.
Many of the new investments in primary industries have been directed to the forestry industry, including $2m over three years for a forest products masterplan, $1.5m a year for forestry research at Mount Gambier, and $2m over two years for a construction softwood transport assistance program.
Port upgrades at Cape Jervis and Penneshaw will receive $15m in additional funding in 2023-24, while $13m will be budgeted for fruit fly outbreak responses.
There was a win for vehicle owners in remote regions, with $12m budgeted over four years to reintroduce an out-of-areas registration concession.
The rock lobster industry will be provided with $2.6m in fee relief as it seeks new markets after trade sanctions were imposed by China.
$2m will be spent over four years for landowners to purchase and maintain farm firefighting equipment, with another $2m spent to replace fire towers with new technologies to provide landscape level fire detection.
The establishment and operation of a Cross Border commissioner role will receive $2.1m in funding over four years.
While spending on primary industries was limited, there was $306m splashed on regional health, with new beds and hospital upgrades budgeted for across regional SA.
Close to $340m was announced for new work on regional roads as part of the projected $7.83 billion spend on the state's roads over the next four years.
Local Government and Regional Roads Minister Geoff Brock said he was "delighted" that the budget delivered on Labor's election commitments to the regions.
"It recognises that our regional communities play an important role in the social and economic fabric of the state," he said.
"The days of city-centric politics need to end and I believe this budget offers much for our country communities and demonstrates a thinking that the new regime's vision reaches beyond the Tollgate and Gepps Cross."
Delivering the budget, Premier Peter Malinauskas said it was without doubt a "health budget", while treasurer Stephen Mullighan said his government was delivering all of their election commitments and returning the budget to surplus, with no new taxes or new tax increases.
He said it delivered on the government's "substantial agenda", while "maintaining commitment to fiscal discipline".
"This budget lays the foundation for the government's agenda over the next four years, which is all about delivering for the next generation no matter what part of the state they choose to live, including people in regional SA," Mr Mullighan said.
The government is predicting a surplus of $233 million in 2022-23 and $643m surplus by 2025-26.
There was some criticism of the budget from the Greens and Liberals.
The Greens described the financial plan as one of missed opportunities.
"The Greens have welcomed the Malinauskas Government's increased investment in health in their first budget, but lament the opportunities missed in housing, the environment and higher education," Greens Treasury spokesperson Robert Simms said.
"The Greens welcome Labor's increased investment in our hospitals but sadly preventative health doesn't get the focus it desperately needs."
Shadow Treasurer Matt Cowdrey was scathing of the Premier, saying "cruel cuts" would impact "thousands of South Australians".
"Peter Malinauskas made huge promises during the election but failed to mention the significant cuts and job losses for South Australians," he said.
The Liberals were critical of a budget that would see job growth rates decrease, cut $700m of government services and jobs, and see net debt increase to $34b in the next four years.
"Costs continue to skyrocket under Labor and treasurer Stephen Mullighan claims he's reining in the spending, but debt just keeps going up," Mr Cowdrey said.
"Net debt will balloon to almost $34 billion in the next four years and that's a cold hard fact."
*Industry reaction and more government/opposition responses to come
