Mr. McGowan questions the Premier about job losses in WA, specifically regarding the closure of the Smith's chip factory. The Premier acknowledges the job losses and explains the economic context, highlighting the shift from mining construction and upcoming changes in the potato industry.

AnsweredQoN 846Legislative Assembly
Asked
15 October 2015
Portfolio
Premier

QuestionView source ↗

UNEMPLOYMENT
— FIGURES
846. Mr M. McGOWAN to the
Premier:
I refer the Premier to the 9 000 fewer employed Western
Australians revealed in today's Australian Bureau of Statistics
figures, and the recent announcement that the Smith's chip factory in
Canning Vale will close next year, with approximately 300 more employees losing
their jobs. What did the Premier do to try to retain this large employer in
Western Australia?

AnswerView source ↗

I understand the unemployment rate for Western Australia was
6.1 per cent, which was unchanged. It has risen a little.
Mr M. McGowan :
There are 9 000 fewer people in work.
Mr C.J. BARNETT :
Is the Leader of the Opposition trying to mumble another question?
The unemployment rate has increased a little, from five per
cent to around six per cent. It is still the second lowest rate in Australia. New
South Wales has the lowest rate of unemployment because of the strength of the
Sydney economy. We have come off a peak period of construction in the mining
industry. Although major construction projects are still underway, it is not at
the level that it was two years ago. That causes some dislocation, and it is
not surprising that there has been a small increase in unemployment. A lot of
the activity and construction now is around the Perth central business
district.
Mr M. McGowan interjected.
The SPEAKER : The
Leader of the Opposition!
Mr C.J. BARNETT :
If the Leader of the Opposition knew anything about month to month —
Mr W.J. Johnston interjected.
Mr C.J. BARNETT : I
have not said what I was going to say, and the member laughs. That is great
anticipation.
The SPEAKER :
Member for Cannington, I call you to order for the first time.
Mr P.B. Watson interjected.
The SPEAKER :
Member for Albany!
Mr C.J. BARNETT :
There has been some dislocation. What we saw was a very rapid growth in
mining-related employment. It has come off that peak, but it is still far
higher than it was, say, four or five years ago, and that industry is still
strong. However, there are changes taking place within the economy. I regret
the fact that Smith's is going, but this government does not race and
chase around every change in the jobs market or, indeed, every change in the
corporate sector. There is going to be change in the potato industry, and this
government will be introducing legislation to abolish the Potato Marketing
Corporation of Western Australia, and that will mean some further dislocation
in that industry. Some of the small producers may go out of potatoes and go
into other crops and production. That will happen. I am actually relieved that
employment in Western Australia, given the downturn in mining, has been as
stable as it has been. I hope that it continues and I expect to see a
strengthening in employment over the next 12 months.

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