My home state managed to break into the political news this week as a blocked budget measure by the Liberal’s and the Senate cross bench has left the budget potentially in danger of not passing. This would have significant impact as any public service worker is then in danger of not being paid. As a result of this breakdown in Parliament Jay Weatherill the premier has a few options (1). Option 1 is for the Labor party to do what they did in 2014 and scrap the bank levy; this would cost the budget 370 million dollars that would then have to be replaced in some form by another measure. The second option is to try and reintroduce the bill in the upper house and hope that they can convince the cross bench of the merits of passing the budget as a whole and not putting at risk the whole budget to oppose one measure. The last option is to declare the bill is a special measure and call something akin to a double dissolution election on the matter. This would then allow the Labor Party to try and get the measure through a special sitting post an election, this is a risky move given that the Weatherill Government has been on the nose increasingly in the last 12 months and there is no guarantee they would win the election leaving the comparisons to Theresa May or Malcolm Turnbull calling an early election. This option allows me to discuss below the recent poll that has come out.
(2) Suggests a very tight election race with a 50-50 2PP vote and when you consider that the Liberal Party lost the 2014 election with a 53 percent 2 Party Preferred vote one might assume that the Liberal Party are in some trouble. The elephant in the room however continues to be the Nick Xenophon SA Best Party. They are polling at 21 percent and so they will be in a position to determine the party that wins the election. The other interesting change from the last election is a large seat redistribution that has changed the landscape of the state. (3) Now has the Liberal Party with an election winning 27 seats as opposed to 20 notional seats for the Labor Party. Four Labor seats are notionally Liberal namely being Newland, Mawson, Colton and Elder. Now these seats are held by long term Labor MPs so incumbency will help those members out except in Colton where the member has announced they are retiring which probably makes that an easier seat for the Liberal Party to win. The Labor party have 7 seats under 5 percent including some in the North East of Adelaide and given the prosperity of these areas relative to most of metropolitan Adelaide is a concern for the Liberal Parties prospects of winning an election if they can’t grab a seat or two there. The Xenophon Party rather than the Labor Party might also make life difficult because as was seen in the federal election his vote travelled better in the country and the hills than the metropolitan area. Where his vote was in the mid teens for metropolitan areas, that vote increased to 30 percent in the country and hills areas and saw his party take the Federal seat of Mayo. This hurts the Liberal Party as most of their seats are concentrated in the country and hills areas. Indeed for all of the complaints I have heard about the Labor party winning the election unfairly and that the party who gets the highest 2PP should win the election they miss this basic point! South Australia has around 1.7 million people (4) of which 1.3 million people live in Adelaide and in metropolitan Adelaide the Labor Party won the 2PP vote 51.3 percent to 48.7 percent. That is the figure that the Liberal Party will have to improve on in the next election and with the Xenophon party polling at 20 percent if those numbers flow back more to the Labor Party then they may still hold on in a similar setup to the current Parliament.
The other important issue from this week is the official announcement of the Tesla company ran by Elon Musk to build a lithium ion battery to connect with a wind farm currently being constructed (5). The battery is being made to try and ease the issues of blackouts and power shedding that have been prevalent in SA over the last 12 months. In the event of a significant outage the hope is that the battery would allow for backup power to avoid long lasting blackouts. The added bonus for the SA government is the announcement of Musk that if the battery is not built within 100 days then the cost would be free to the government. If this 3 months build target is met then the government might be able to avoid a repeat of the power losses that impacted the state over the last summer which would be a large political boost to the re election chances of the Weatherill Government.