Michael Hickinbotham: One of SA’s greatest eras of economic growth was post World War II

South Australia has a big problem and whether we realise it or not, the state has already lost something unimaginable not so long ago, writes Michael Hickinbotham.

Imagine removing from South Australia the combined population of the Adelaide Hills, Murray Bridge and Mid-Murray local government areas.

Those 70,000-plus people represent how many in the population our state has lost to interstate migration, in net terms, during the past 20 years.

Without the benefits of overseas migration we could not have made up the shortfall.

But, while population growth aligned with the national average is a prudent target, across the past three decades we have lagged behind to achieve only half that (1.37 per cent vs 0.74 per cent).

SA is emerging from the global pandemic with a once-in-a-generation opportunity to recalibrate our future.

The decisions we make today can support a prosperous tomorrow. Measured and sustainable population growth will be critical to success.

This is the single best way to create jobs, grow our tax base, strengthen our economy and create a world-class lifestyle for South Australian families.

We have already seen significant positive gains in net interstate migration since the start of the pandemic, and there is more that can be done.

An International Monetary Fund report has found that, in advanced economies, a 1 per cent increase in the share of migrants in the adult population can raise gross domestic product per person by up to 2 per cent.

Travellers at Adelaide Airport. Picture: NCA NewsWire / Kelly Barnes

This makes a compelling case for encouraging overseas migrants to SA.

In fact, without overseas migration, it is estimated SA’s total population will fall by a net average of 7000 to 14,000 annually.

Our state will age faster and the number of deaths could well exceed births within the next decade.

Economics aside, a culture of immigration is a desirable quality.

It brings energy and vitality to our state while creating new opportunities for our children and grandchildren.

The question for many South Australians is one of balance.

At what rate is population growth too low, and at what rate is it too high?

Growing SA’s migrant intake to the national average is a good place to start.

An additional 10,000 skilled migrants each year would inject vibrancy into our state while retaining the values and lifestyle we cherish.

With international borders reopening, the time to act is now – and we don’t need to reinvent the wheel.

One of SA’s greatest eras of economic growth was post World War II when we reinvigorated the state and repaid our debts off the back of migration.

More recently, after attaining regional visa status in the early 2000s, SA’s population grew at a 40-year-high rate.

What we can learn from these experiences is that skilled and business migration has been critical to economic prosperity in the past, and it can do so again.

A Qantas flight lands in Adelaide. Picture: Naomi Jellicoe

If we are to position ourselves as a future-focused state in the technology, space and defence arenas, we desperately need the skilled and entrepreneurial workforce to match.

We can and should be cherrypicking the best talent, the most ambitious entrepreneurs and the best start-ups to create a state of innovation and unrivalled ambition.

How do we achieve this?

Here is my top four:
RECALIBRATE the regional visa program that worked so well for SA in the past;
INCREASE the number of skilled migration places for which SA can nominate, aligned with skillsets of our choosing;
USE higher education to target the migrants and skills we want. Refurbish the pathway to permanent residency for international students, with the state government and universities working together to develop the best career pathways for our jurisdiction, and;
EMPOWER the state to sponsor migrants and make it easier for our employers to recruit and sponsor migrants with the desired skills.

We can build a better SA. And to do so we must be bold and brave in our thinking.

Growth – responsible, measured and targeted – must be SA’s future story.

Michael Hickinbotham is Hickinbotham Group of Companies managing director