Regional Business Development

The Hon. HENRY TSANG: I ask a question of the Minister for Regional Development. Can the Minister outline the work being undertaken by the New South Wales Government and local councils to attract businesses to regional New South Wales?

The Hon. TONY KELLY: A key commitment of the Iemma Government is to secure economic investment for New South Wales. It is fundamental for economic growth and, most importantly, for the creation of jobs. Since the March election the Iemma Government has approved 138 projects worth $5.74 billion to the State's economy and more than 25,800 jobs—and that is just since the election. Since the major projects system was introduced a little over two years ago, we have approved projects worth nearly five times that much. The diversity of the New South Wales economy has always been one of our strengths, and the only way we can continue to stay strong is by looking for new investment opportunities and new business partners. A key to the Iemma Government's strategy to build regional economies is to work closely with local councils and in particular their economic development officers.

I am pleased to inform the House that New South Wales recently hosted the second National Economic Development Conference, on 31 October 2007 and 1 November 2007, at Darling Harbour. More than 200 economic development officers, predominantly from local government from across Australia and beyond, attended the conference. I was able to meet the chairman of the International Economic Development Council, Ronnie Bryant. The conference provided insights into economic development management strategies being adopted by local governments and economic development organisations across the globe to drive job creation and investment.

The New South Wales Government was a gold sponsor of the 2007 National Economic Development Conference. Our sponsorship is one tangible demonstration of our ongoing strategic commitment to working with the Economic Development Association and local councils in New South Wales. These people are at the coalface of regional business development, they are often the first port of call for a new business wanting to establish or relocate to an area. They are important partners in the Iemma's Government drive to encourage business development and investment, especially in regional New South Wales.

The results of our joint determination to keep the State's economy strong can be seen in the recent employment levels. The September labour force statistics show that employment in New South Wales continues to be very strong; there were 3.37 million people in employment, an increase of 2 per cent on the previous year. Regional New South Wales is also getting stronger. Employment in regional New South Wales increased by 3.9 per cent from September 2006 to 2007—despite the worst drought we have ever been through—and the labour force participation rate now stands at 60 per cent, the highest since 1988. However, we know that we cannot afford to become complacent.

The Iemma Government recognises that the State economy faces significant challenges—including increased global economic competition, as well as constraints on the availability of resources and attracting a skilled workforce. With that end in sight the lemma Government has been encouraging initiatives that create a diverse economic base, not just in Sydney but also across rural and regional New South Wales. A key to facilitating economic diversity and growth is the State Government's partnerships with local councils, industry groups and community organisations.

However, the missing part of this equation is of course the Howard Government. If one wants any more evidence on how the Federal Government has dropped the ball on regional development, one need look no further than the skills crisis. The latest example of its inaction on skills is the announcement that Rex will slash a third of its flights to Wagga Wagga and has cancelled its Sydney to Cooma service until May next year. The reason the airline cites is a lack of trained pilots. All of this is in the lead-up to the Christmas holiday season, making it harder for country families to get together at this important time of the year. I understand that the Rex plane to Wagga Wagga is called the Kay Hull after the local Federal member of The Nationals. No doubt the first plane that will be mothballed will be the Kay Hull. I strongly suggest to the voters of Wagga Wagga that they should adopt a similar approach to their local member in three weeks time. [Time expired.]