By Nigel McBride, CEO Business SA

Business SA’s mission is to try and grow business confidence as a pivotal part of strengthening our economy.

Without confidence, people won’t borrow money, they won’t risk entering new export markets, they don’t take on extra employees and they will avoid spending in case the economy hits another down-turn.

So, it’s a real shame that four recent independent reports now reflect the decline in business confidence across South Australia, while showing little optimism for the next 12 months.

The BankSA State Monitor last week showed confidence levels have crashed to a four-year low, and have fallen 16 per cent since February alone.

The survey was taken within weeks of June’s State Budget, reflecting the inevitable conclusion that the Budget didn’t send the kind of signals required to build business confidence. The surprise SA bank tax epitomised that wrong kind of signal.

The State Monitor shows net pessimism in the South Australian business community sits at -46 per cent, compared to -10 per cent after last year’s Budget.

Optimism about the state’s business climate over the next 12 months fell to its lowest level in almost 20 years.

Our March pre-Budget Survey of Business Expectations supports the BankSA findings, with business confidence dipping 5.8 points over the preceding year.

The Sensis Business Index of the small to medium business sector in June saw confidence fall 4 points in South Australia to be well below the national average, and confidence in the State Government fell 16 points.

The NAB Business Index also showed a 10-point drop in business confidence in May, with no states improving at that time. The trend estimate showed a slight improvement.

The proposed SA bank tax will be debated in State Parliament this week, with the Opposition and key cross-benchers pushing for it to be cut. Like us, they don’t want business confidence to be further damaged over the next six months, during a period in which Holden will close and thousands of automotive and supply chain workers lose their jobs.

At a time like this, with all these negative indicators aligning, the Weatherill Government has failed to recognise these sentiments and instead has taken the tax-paying public for granted – whether it be mum and dad investors, any worker who holds a superannuation account or our thousands of small business owners – by dumping an arbitrary tax on an economically important South Australian industry sector.

If the State Government continues to push for an arbitrary tax targeting the banks that play a vital role in partnering with SA businesses to grow our economy, and that already support thousands of jobs in this state (both directly and indirectly), it means that voters at the March election will be faced with a clear choice.

I believe that they will vote for confidence and jobs, not more arbitrary taxes.