Business SA chief positive about future
THE Federal Government’s Budget focus on workforce participation, skills and training will help South Australian businesses have the workers they need, says Business SA.
But chief executive Peter Vaughan says the initiatives will take time to flow through to the economy.
‘‘One part of the two-speed economy is driving a huge demand for labour, which is expected to place upward pressure on wages, inflation and interest rates,’’ he says.
‘‘As skill shortages continue to burden the local business community, the $3 billion training package, which includes 130,000 new training places, is an important step for the local economy.
‘‘Businesses will also benefit from programs to recruit skilled migrants and provide training opportunities to address growing demands on labour in the mining sector.’’
He says investment in road, rail and health infrastructure in SA also will have an important contribution towards jobs and business.
‘‘With our local unemployment above the national average, the economy will benefit from initiatives encouraging the long-term unemployed back into the workplace and welfare to work reforms,’’ he says.
But he says it is disappointing significant tax reform was not considered.
It will mean businesses have no relief in their overhead costs, which can affect their capacity to employ extra staff.