Events
Another side to the Super tax on Mining
Tuesday 8 June 2010
The 'Supertax' debate is an interesting one and as expected, both parties are heavily invested in their own outcomes. One thing the Mining Companies understand is that the tax will lower the size of their profits in boom times for the resources sector - they'll still be raking in billions, its just that some of the cream will be removed. And one thing most mining companies anticipate for the near term future, is a return back to the really big BOOM times. That's why they are fighting this idea so hard because if they thought things were going to turn poorly, they'd be urging the Government to act because they'd want the benefits of paying less tax in the not so good times (which they're saying little about at the minute). The Government also seems to be fighting this idea with limited perspective -
threats of job losses by the Mining Industry is NOT the doom for the Australian economy they'd like us to believe - in fact it could well be the opposite. As we've already seen when the mining industry quickly shed its part time workforce in the thousands at the first hint of a possible global recession, what other industry sectors gained was raft of workers suddenly available to pick up the delays in projects. When the Mining sector dumped its part time workforce all of those construction workers, bricklayers, plumbers, truckdrivers and a whole heap of 'real' workforce labour became available elsewhere. People who'd been waiting for months to get a new pergola or garage built, new factory completed or repairs to the manufacturing machinery finally had the workers available to do so, as those skilled labour personnel were forced by the Mining sector workforce shedding, to return to their previous areas of skill.
And this is where the Government seems to be missing the point. Delaying Mining projects will turn out to be a very good thing elsewhere in the Australian economy. The influx of available carpenters and bricklayers will see a more competitive environment for construction and renovations. More truck drivers will speed the delivery of goods and services and so on lowering the pressure on wages in those sectors as more skilled personnel return. Quite simply, any delay by the Mining sector in starting projects will be welcomed by other industries who really could do with a boost in the number of skilled workers. Rather than worry or buy into the Miners Mythology, other industry sectors should be shouting loudly: 'bring it on!'
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Events
Monday 30 August 2010
Whilst the counting of votes is over the election is yet to be completed. Right now the discussions continue between the 'three amigos' who are clearly maximising their time in the spotlight, and the two leaders of the major parties. And whilst the media is fixated on who ought to be, deserves to be, should be and could be the next Prime Minister, maybe we're missing the bigger picture. At the end of the day it really won't matter.
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Saturday 21 August 2010
If you've seen any of the media campaigns for the Australian Federal Election you could have come to the following conclusions: Julia Gillard had a fixation with hand getsures; Tony Abbott had a fixation on Boats; and the Greens had the best Television Commercial not only of this campaign but of any other they've had before - trouble was it was put together by an ad agency as part of the TV show 'The Gruen Transfer' and never made it into the real world.
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Friday 13 August 2010
If you've been following any of the mainstream media election coverage here in Australia (stuff in the usual papers, radio and TV programs) you've no doubt got a good understanding of what is going to happen on election day. The mainstream media synopsis thus far is that a) Julia Gillard got off to a good start; b) Tony Abbott has established himself and that c) it seems likely that the coalition will be elected to run the country. Unless you've been looking at other mainstream media which says that a) Julia Gillard got off to a good start; b) Tony Abbott came flying up to and then past Julia Gillard and then c) Julia Gillard edged her way back in front but that it is still likely for her to lose the election. So where does that leave our understanding? I'm reminded of a similar series of events leading up to the Victorian State Government election about 8 years ago...
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