Q&A With Steven Marshall

Premier of South Australia

Premier of South AustraliaSouth Australia has reaped the rewards of successfully managing the health and economic impacts of COVID-19. As Australia and the world opens up, what are your priorities to ensure that businesses in this state can grow and prosper?

It’s been almost two years since the COVID-19 pandemic first began and despite the initial fears that our economy could be facing an unprecedented crash, nothing could be further from the truth.

My government’s management of the COVID-19 pandemic has seen our economy go from strength to strength, with businesses both small and large enjoying extraordinary demand – particularly in the automotive sector.

Under my government South Australia went into 2022 with the lowest unemployment rate in our State’s history, the strongest economic growth in the nation, and is the third most liveable city in the world. It is no wonder that people around the globe are taking notice of South Australia.

For the first time in 30 years we have more people moving back to Adelaide than moving away from it – young people realise they can have a fulfilling career right here in South Australia. This means your kids will be able to buy a house and have a career here, and it also means more customers and clients for your business.

My Government is committed to continuing this trajectory – from investing in our critical industries of the future like defence and space, to attracting global businesses like Amazon and Google, we want to see the South Australian economy as the best place to live and do business in the nation. I also want to ensure that our local businesses, like yours, have the skilled staff you need to grow your bottom line.

COVID-19 has been a major disruptor, regularly changing the way we do business in this State. If you are elected as the next Premier, what support, clarity and confidence can automotive businesses expect from your government?

I understand that all businesses have had to adjust how they operate in order to keep their staff and customers safe. For the automotive repair sector this has meant extra sanitation practices, limiting face to face interaction with customers, and extra management to ensure your staff and clients have been able to socially distance.

My Government understands how important it is to keep South Australian vehicles running safely, which is why mechanics were classified as an ‘essential service’ and able to operate during lockdowns.

I want to thank all of you for doing the right thing – you have kept your staff and customers safe.

Currently electric vehicles only make up a very small percentage of sales in South Australia, with varying predictions about how many will be sold and when. How will you help businesses in the automotive industry plan and invest towards this future with confidence?

My Government is committed to growing the amount of low emission and electric vehicles in South Australia, but we understand that we need to incentivise buyers in order to stimulate the market.

This is why in December my government announced a generous $3,000 subsidy to help drive the take-up of zero and low emission vehicles. This subsidy is available for 7,000 eligible new battery electric and hydrogen fuel cell vehicles registered in South Australia from 28 October 2021.

There will be a price cap of $68,750 (inc GST) to provide an incentive to bring lower-priced electric vehicles to the market and avoid subsidising expensive electric vehicles.

This is on top of the single largest investment in electric vehicles in the state’s history through our $18.3m Electric Vehicle Action Plan – announced as part of the State Budget 2020-21.

We’ve also committed a further $12.25 million to accelerate the uptake of electric vehicles (EVs) with a new EV smart charging subsidy for South Australia households that invest in smart charging solutions.

My government will continue to work with the MTA to identify the opportunities for the industry, including the best ways to up-skill your workforce so they are ready to work on these new technologies.

Changing automotive technology is also putting pressure on government revenue such as national fuel excise, leading to different states and territories implementing or ruling out road user charge policies for zero and low emission vehicles. Is a road user charge at a state level in our best interests?

The reality is, if you’re driving an electric vehicle then you’re not paying fuel excise at the pump and you’re contributing significantly less to the vital upkeep of our vast road network. A road user charge for zero and low emission vehicles means that everyone is contributing fairly to the upkeep of our roads.

Ultimately this reform will have to happen - as more and more Australian motorists shift to zero and lowemission vehicles, all Governments will need to ensure there is sufficient funding for ongoing road maintenance and infrastructure investment.

Road user charges are now becoming common place in Australia – with Victoria, NSW and recently Tasmania all announcing or implementing a road user charge.

We are looking at a scheme similar to Victoria’s, where motorists would be charged a set rate based on kilometres travelled.

There has been a strong focus on growing and retaining apprentices from the State and Federal governments over the past two years. What will your party do to encourage businesses to continue to invest in apprentices?

When I speak to mechanics and automotive business owners around the state, they tell me that the biggest limiting factor to their business is availability of skilled workers.

The solution to this is twofold: training up our local workforce to create a skills pipeline, and bringing in skilled workers from interstate and overseas who can plug skill gaps quickly.

This is where my Government’s $200 million Skilling South Australia initiative made a real difference, delivering nation-leading growth after Labor’s 6-year apprentice and trainee decline.

Over the past four years South Australia has led the nation with over 55,000 new apprenticeship and traineeship commencements, many in the automotive sector. Since we were elected in 2018, over 3,300 businesses have hired a trainee or apprentice for the first time – and that momentum will continue.

A re-elected Liberal Government will continue to invest in our apprentices – making it easier for businesses to hire and train the skills they need to grow their workforce.

While focussing on the local skills pipeline, we have also recognised that urgent skills gaps can be plugged quickly by incentivising qualified tradespeople from overseas to consider bringing their careers to South Australia.

Following representations from my government about the latent need within our sector, the Federal Australian Government has added

Automotive Electricians, General Motor Mechanics, Diesel Motor Mechanics, Automotive Transmission Technician and Motorcycle Mechanics back onto to the list of trade workers able to apply for a prioritised work visa in South Australia under the DAMA program.

I am confident that these two approaches will grow the skills we need for our automotive sector.

I would also like to take this opportunity to thank all the MTA members who have taken on new MTA apprentices in the past 18 months.

Far from being discouraged by a global pandemic, you have invested in our industry, our young people and mature aged apprentices. Around 500 apprentices and trainees have been the direct recipients of the MTA’s Group Training Scheme, and I’m excited to see the next generation of automotive repair experts already well on their way to fulfilling careers.

According to AAA data, South Australia has one the highest road tolls per capita in the country, and the ABS shows that we also have one of the nation’s oldest vehicle fleets. With 70 per cent of used vehicles in the state sold privately, do you support making it a legislative requirement and responsibility for those selling a vehicle to ensure it is roadworthy?

My Government currently has no plans to implement a mandatory roadworthy certificate requirement on all second hand vehicle sales.

Consumers and the crash repair industry have had a massive win with Parliament passing laws to mandate the national Motor Vehicle Insurance and Repair Industry Code of Conduct in South Australia with binding mediation and penalties. Will you commit to delivering the regulations and implementation of dispute resolution by 1 July 2022?

My Government is currently working through the implementation of the scheme, including how it may impact with work being undertaken by the Commonwealth.