28 August 2018
The most comprehensive regional business survey conducted in South Australia has found owners and decision makers are being hampered by high electricity costs, lack of access to appropriately skilled workers, want lower company and payroll taxes and are concerned about the high cost of labour.
An overwhelming majority of the biennial Business SA Regional Voice Survey respondents, 68 per cent, called for the State Government to develop a regional population growth strategy, calling for help to boost their communities.
The survey also found regional businesses were resilient, with confidence in South Australia’s economy growing by 55 per cent since Business SA’s last report in 2016 – rising from 83.6 index points to 129.8 points.
Business SA chief executive Nigel McBride said the survey, which canvassed the challenges and opportunities facing the entire state, would allow us to take those concerns and advocate on the businesses’ behalf when talking to local, state and federal government representatives, and those who shape policy.
“Our regional businesses are facing unprecedented challenges as populations shrink and the cost of living rises,” Mr McBride said.
“We need to remember that if our state didn’t have a strong agriculture and aquaculture sector, including wine, we’d be struggling much more in our transition away from auto manufacturing. It’s our job to help our regional voices be heard.”
Mr McBride said reliable telecommunications was also a concern, with 39 per cent across all regions either dissatisfied or strongly dissatisfied with mobile coverage.
“We know regional mobile coverage is patchy at best, but some business owners are telling us they’re anxious about conducting business online in case their connection drops out mid transaction. Another told us 80 per cent of his calls drop out or fail, and that’s unacceptable for a business.”
Like many city businesses, Mr McBride said our regional counterparts also faced high costs of doing business but they did not have the luxury of a diverse labour market to choose candidates for jobs and sending staff to Adelaide for training could be cost prohibitive.
Population growth was also a major issue, and Business SA will continue to lobby the State and Federal Governments for regional concessions to encourage more migrants to move to our country town and cities.
“It can be difficult to encourage workers to move with their families to a regional area. Communities are calling for better infrastructure to make their region more attractive – such as better health services, local doctors, good school buildings and up to date community facilities,” Mr McBride said.
The Regional Voice Survey covered eight geographic areas, covering regions from Kangaroo Island to the South East, Far North and Eyre Peninsula.
The following page provides a summary of the key issues in each region. To view the entire survey, including comprehensive regional data, please
click here
Barossa:
The highest priorities for Barossa businesses were electricity costs, labour costs, company tax and council rates. The top priority for government support was social infrastructure, such as hospitals, schools and community facilities.
Adelaide Hills, Fleurieu Peninsula, McLaren Vale and Victor Harbor:
Business owners rated electricity costs and reliability, economic infrastructure, company tax, council rates and labour costs as priorities. There were several comments about the need for rail infrastructure into growth areas including Mount Barker.
Far North, Port Augusta and Whyalla:
Council rates topped the concerns for businesses in the region, followed by electricity costs and economic infrastructure. Half the businesses surveyed supported high-level nuclear waste storage in the region, compared to 38 per cent against. Skills shortages were a challenge for 78 per cent.
Eyre Peninsula:
Business owners rated electricity costs, skills availability, telecommunications issues and economic infrastructure as priorities. A substantial 73 per cent of Eyre Peninsula businesses called for a government policy to promote regional population growth.
Lower & Mid North, Port Pirie and Yorke Peninsula:
Again, electricity costs rated the highest, followed by infrastructure, labour costs and skills availability. Half viewed either company tax or payroll tax as the most constraining to their business growth. Improving or building roads and ports were also a priority.
Kangaroo Island:
Being island bound meant economic infrastructure requirements ranked as the highest priority for Kangaroo Island businesses, followed by electricity, council rates and labour costs. Businesses found it difficult to attract skilled professionals to the island, and they saw the benefit in a deep-sea wharf.
South East:
South East businesses wanted investment in infrastructure, lower electricity costs and better reliability, and struggled to attract skilled workers. Mount Gambier Airport was a popular topic, along with cutting payroll tax to allow businesses to employ more staff. Red tape was also an impediment.
Mount Barker, Murraylands, Riverland and Strathalbyn:
Electricity costs, council rates and operations, lack of population growth and skills availability were the top regional issues. Population retention strategies were important, including university facilities to better train locals and a commercial airport to attract tourists.
To arrange an interview or for further information, please call Verity Edwards on 0412 678 942.