On Tuesday it was revealed the South Australian Government will need to chop $1.4 billion from the state coffers by 2016 with $240 million coming from the Department of Health and Ageing.
Eyes are now on the state government after three independent audits recommend the cutting of 308 staff and 114 beds in South Australian Hospitals.
Auditor-General Simon O’Neill indicated the global financial crisis is having a major impact on state revenue with property prices falling and the consumer more careful with spending.
But while Health and Hospitals beds are getting the cut, the state government has found money to help prop up the ailing residential construction sector, announcing a new $8500 Housing Construction Grant. Additionally, first home grants for new homes will increase to $15,000.
Premier Jay Weatherill said, “This is unashamedly about trying to kickstart investment in new-built homes.”
The grant comes amid evidence most sectors in the economy are struggling, not just housing construction. It would appear the housing construction lobby can scream the loudest.
It is estimated the new grants will cost $40 million over the next two years, but is expected to be offset by the axing of free money for existing homes.
But in order to spruik the new residential construction stimulus, it was further revealed today the Government will spend hundreds of thousands on a marketing campaign including print, radio and television.
» Newly built homes in South Australia to be eligible for a grant of up to $8500 – Adelaide Now, 15th October 2012.
» $1 billion must be cut from South Australian Government Budget, Auditor-General Simon O’Neill warns – AdelaideNow, 16th October 2012.
» Housing grants reformed for struggling SA market – The ABC, Tuesday 16th October 2012
» State Government to spend hundreds of thousands to spruik housing stimulus package – AdelaideNow, 18th October 2012.