The Growing Gap between SA and the rest of mainland Aus
Posted: Sun May 07, 2006 10:18 am
We're not being paid enough
David Nankervis
07may06
THE gap between the average South Australian wage and those of interstate workers is growing.
Latest Australian Bureau of Statistics figures show South Australians working full-time earn an average $950 a week – the lowest amount in mainland Australia.
That wage is $241 less than workers in the ACT, who earn the biggest pay packets.
The gap in 1990 was just $89.
Over the same period, the pay difference between NSW workers and those in SA has blown out from $32 to $139 a week, and the pattern is similar in comparisons with all other mainland states and territories.
Adding to the wage growth gap is Adelaide's rate of inflation, which is the highest in the nation.
The wage and inflation figures are a further strain on SA households already struggling with record petrol prices and a .25 per cent interest rate rise announced on Wednesday.
SA Centre for Economic Studies economist Jim Hancock said the ABS figures showed many SA families were under pressure.
"If inflation is growing here quicker than interstate, it means SA householders are doing it harder than those interstate," he said.
This was compounded by slower growth in real wages in Adelaide compared with other capitals.
"We are therefore becoming worse off relative to the rest of the nation," Mr Hancock said.
He said wage growth was tied to economic growth and SA's economy had failed to keep up with other states since 1990.
According to the ABS, Adelaide has recorded a total inflation rate of 56 per cent over the past 16 years.
This was 10 per cent more than Darwin, the capital with the lowest rate.
The figures show the cost of beef, bread, beer, milk, electricity and education have grown at a greater rate than any other capital since 1990.
Consumers SA secretary Tony Moore said the figures "show families are doing it harder now and the cost-of-living advantages are being eroded".
"And the real worry is this long-term inflation trend shows no sign of easing or the situation getting better," he said.
Mr Moore blamed privatisation for Adelaide's high inflation rate.
"Look at electricity – deregulation was supposed to deliver savings," he said.
"But instead prices rocketed and that has to feed through to the cost of production for other goods," he said.
Deregulation of industries such as the dairy trade had also caused problems and "with petrol prices increasing, transporting milk and other goods from interstate is only going to become more expensive".
According to the ABS, Adelaide's electricity prices have almost doubled since 1990.
They have risen only 57 per cent in Melbourne and just 25 per cent in Perth and Darwin. Business SA chief executive Peter Vaughan said the burden of soaring electricity prices had been carried almost exclusively by householders as power deregulation in 2002 had provided some savings for industry.
"But with householders paying the price of higher energy costs, that means they have less disposable income to spend," he said.
Welfare agency Uniting Care Wesley said the increasing number of people seeking financial help reflected the tough times householders were experiencing.
"It seems we have been let down by the economic boffins who argued privatisation was the answer," spokesman Mark Henley said.
"The squeeze on household budgets has been growing and we are seeing more and more people coming to us for help."
David Nankervis
07may06
THE gap between the average South Australian wage and those of interstate workers is growing.
Latest Australian Bureau of Statistics figures show South Australians working full-time earn an average $950 a week – the lowest amount in mainland Australia.
That wage is $241 less than workers in the ACT, who earn the biggest pay packets.
The gap in 1990 was just $89.
Over the same period, the pay difference between NSW workers and those in SA has blown out from $32 to $139 a week, and the pattern is similar in comparisons with all other mainland states and territories.
Adding to the wage growth gap is Adelaide's rate of inflation, which is the highest in the nation.
The wage and inflation figures are a further strain on SA households already struggling with record petrol prices and a .25 per cent interest rate rise announced on Wednesday.
SA Centre for Economic Studies economist Jim Hancock said the ABS figures showed many SA families were under pressure.
"If inflation is growing here quicker than interstate, it means SA householders are doing it harder than those interstate," he said.
This was compounded by slower growth in real wages in Adelaide compared with other capitals.
"We are therefore becoming worse off relative to the rest of the nation," Mr Hancock said.
He said wage growth was tied to economic growth and SA's economy had failed to keep up with other states since 1990.
According to the ABS, Adelaide has recorded a total inflation rate of 56 per cent over the past 16 years.
This was 10 per cent more than Darwin, the capital with the lowest rate.
The figures show the cost of beef, bread, beer, milk, electricity and education have grown at a greater rate than any other capital since 1990.
Consumers SA secretary Tony Moore said the figures "show families are doing it harder now and the cost-of-living advantages are being eroded".
"And the real worry is this long-term inflation trend shows no sign of easing or the situation getting better," he said.
Mr Moore blamed privatisation for Adelaide's high inflation rate.
"Look at electricity – deregulation was supposed to deliver savings," he said.
"But instead prices rocketed and that has to feed through to the cost of production for other goods," he said.
Deregulation of industries such as the dairy trade had also caused problems and "with petrol prices increasing, transporting milk and other goods from interstate is only going to become more expensive".
According to the ABS, Adelaide's electricity prices have almost doubled since 1990.
They have risen only 57 per cent in Melbourne and just 25 per cent in Perth and Darwin. Business SA chief executive Peter Vaughan said the burden of soaring electricity prices had been carried almost exclusively by householders as power deregulation in 2002 had provided some savings for industry.
"But with householders paying the price of higher energy costs, that means they have less disposable income to spend," he said.
Welfare agency Uniting Care Wesley said the increasing number of people seeking financial help reflected the tough times householders were experiencing.
"It seems we have been let down by the economic boffins who argued privatisation was the answer," spokesman Mark Henley said.
"The squeeze on household budgets has been growing and we are seeing more and more people coming to us for help."