The South Australian Government has today announced a $25 million structural adjustment package to boost the economy of Northern Adelaide following the closure of Holden’s assembly plant in 2017. From The ABC:
Its northern economic plan includes a $10-million small business development fund, $7 million to entice tenants to a Northern Adelaide Food Park and money for a disability support hub.
Premier Jay Weatherill said it was a bold plan to carve an economic future for the region.
“It’s a plan which marks out a bright future for the people of the northern suburbs,” he said.
“It lays out all of the economic priorities that we believe are important for this area — it marks out those industries that we believe are going to grow quickest in the northern suburbs.”
The Government said it hoped to create another 15,000 jobs over the next decade, in a region where unemployment is above the state average.
I wish Mr Weatherill the best with his plan, given the closure of Holden will leave an estimated employment hole of around 7,000 and 11,000 jobs, according to modelling by the Productivity Commission and Allen Consulting Group.
However, if Mr Weatherill really wants to boost competitiveness and jobs, along with the disposable income of South Australia’s residents, perhaps he should look at tackling Adelaide’s extortionate land costs? Despite the city being a low growth backwater, Adelaide’s land costs are the third highest in the nation when measured on a rate per square metre basis:
Given that land costs are an essential component of competitiveness, as well as the desirability of Adelaide as a place to live, making Adelaide a low cost city would confer significant benefits to the economy over the long term.
Just a thought…
