Australian Politics Forum - This is typical of our problems

bogarde73

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This is typical of our problems
May 7^th, 2013 at 10:39am

SMR Automotive has confirmed up to 90 jobs will go from its Lonsdale plant in southern Adelaide, as some production is moved to Thailand.

The car components manufacturer says it will reduce the number of contractors, offer voluntary redundancies and other staff will retire.

SMR makes components such as rear view mirrors and indicator lights for Holden, Ford and Toyota.

It blames factors such as the high Australian dollar and high manufacturing costs in Australia for its production changes.

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bogarde73

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Re: This is typical of our problems
Reply #1 - May 7^th, 2013 at 10:54am

They mention the high dollar & high costs.
They could have also mentioned a hopeless govt, but that's beside the point.
The high dollar is primarily a function of the general level of interest rates here. Think about it: if you have cash to invest, where do you put it? In the highest interest paying deposit you can find consistent with safety. Australia (at the present) is about as safe as it gets. It is also paying among the highest interest rates. In most other OECD countries you'd be lucky to get half a percent.
Why does the RBA not lower the cash rate? Because it has a fixation with the threat of inflation. So what if the CPI goes up a couple of percent, which I don't believe it would anyway. The upside is that our dollar would come down and our agriculture, mining and manufacturing (as in the above article) would have a chance of survival.
The other thing they mention is costs of production which in the main means labour costs. Which translated into plain english means our union-dominated manufacturing & mining are having to pay unsupportable levels of wages = businesses take a boat to Thailand.
We have to devise ways & means to get around this or we are well & truly stuffed. By well & truly stuffed I mean the generous welfare society we have can't continue. It is already starting to happen. Companies are not making the profits, they are not paying the same level of tax, government is scratching for money.
One possibility we may have to consider to get around the costs problem is profit-sharing as part-payment in lieue of wages. That's right, workers might have to take some of the risk to stay employed.
If you had floated this idea to the workers in the above story it would have run up against a blank wall.
But if it had been adopted they might still have jobs.

We are at a crossroads. One way leads to the open highway, the other leads to a dead end.

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St George of the Garden

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Re: This is typical of our problems
Reply #2 - May 8^th, 2013 at 6:36pm

If Australia is the safest place to invest how can the government be called hopeless? We are the twelfth largest economy in the world, having passed Spain (if the Libs get in and impose austerity as they are jonesing to do we will pass Spain on the way down down down.) Our currency is a designated reserve or safe–haven currency, due to good economic management.

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Big Dave

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Re: This is typical of our problems
Reply #3 - May 8^th, 2013 at 6:45pm

St George of the Garden wrote on May 8^th, 2013 at 6:36pm:

If Australia is the safest place to invest how can the government be called hopeless? We are the twelfth largest economy in the world, having passed Spain (if the Libs get in and impose austerity as they are jonesing to do we will pass Spain on the way down down down.) Our currency is a designated reserve or safe–haven currency, due to good economic management.

My work is arseholing all of the hired help and short term casuals and offering the long term casuals a permanant/casual deal that offers a weekly wage of $500 a week. People are getting arseholed right left and centre for all sorts of reasons. It's Startrack Express who is owned by Qantas and Australia Post. How does somebody get a car registered or basically live on such peanuts. Anybody that tells you the economy is going great is a god damned liar. I might join the refugees and get on the dole and move up the coast. It doesn't pay to toe the line.

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John Smith Gold Member Offline Australian Politics Posts: 78311 Gender:	Re: This is typical of our problems Reply #4 - May 8^th, 2013 at 7:59pm bogarde73 wrote on May 7^th, 2013 at 10:54am: Why does the RBA not lower the cash rate? Because it has a fixation with the threat of inflation. So what if the CPI goes up a couple of percent then you'd be b1cthing inflation was caused by the carbon tax.
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bogarde73 Gold Member Offline Anti-Global & Contra Mundum Posts: 18443 Gender:	Re: This is typical of our problems Reply #5 - May 10^th, 2013 at 3:44pm No, that comes under the heading of: They could have also mentioned a hopeless govt . .which as I said was beside the point here. I can only point out the true state of our problems to you, you can agree or disagree.
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John Smith Gold Member Offline Australian Politics Posts: 78311 Gender:	Re: This is typical of our problems Reply #6 - May 10^th, 2013 at 3:46pm maybe they didn't feel that they were moving offshore because of a 'hopeless govt'.... you can claim that as often as you like, that doesn''t however, make it true.
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Dnarever

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Re: This is typical of our problems
Reply #7 - May 10^th, 2013 at 3:52pm

bogarde73 wrote on May 7^th, 2013 at 10:54am:

They mention the high dollar & high costs.
They could have also mentioned a hopeless govt, but that's beside the point.
The high dollar is primarily a function of the general level of interest rates here.

.

You miss the point - they lied - the benifit is the third world labor cost (full stop).

that is the reason and the only one.

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bogarde73

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Re: This is typical of our problems
Reply #8 - May 13^th, 2013 at 10:12am

And yet again:

Market gardeners fear ruin from imports

Kate Bastians and Leslee Hall, The West AustralianMay 13, 2013, 5:37 am

WA growers fear rocketing fruit and vegetable imports will squeeze them out of the industry.

Department of Agriculture, Fisheries and Forestry figures compiled for _The West Australian _show the value of imported processed fruit and vegetables rose from $71 million in 2010-2011 to $116 million in 2011-2012.

Fresh fruit and vegetable imports into WA increased 19 per cent over the same period.

South West grower Ben Taylor said imports were the biggest issue threatening WA growers, who were being forced to slash prices to compete.

Mr Taylor said high production costs made the price cuts unsustainable.

"It's killing us," he said.

"We are financially stuffed because our returns are not there any more."

The Myalup grower produces vegetables that are sold fresh and processed.

Mr Taylor said some growers had already been forced out of the industry and he predicted his business would go the same way if imports continued to rise.

"I'll be lucky if I have two years left if things don't turn around," he said.

Donnybrook apple and pear grower Steve Dilley said locally produced food would slowly be replaced by imported food until there was none or little local produce left on supermarket shelves.

"Until consumers go into supermarkets and find the shelves empty because the imported stuff didn't arrive and there's no local produce, it will continue to go on as is," he said.

AUSVEG spokesman Hugh Gurney said overseas growers were able to produce more cheaply than Australian growers because costs, such as wages, were lower.
Vegetables WA executive officer Jim Turley said processed fruit and vegetable imports, which include canned fruit and frozen vegetables, were threatening the viability of WA growers.

"We are appealing to consumers to stick by their local growers because if they don't, we won't be here in 10 years," Mr Turley said.
.

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