Obviously you are not a taxpayer. Its got nothing to do with Abbott. Ford, GM and Toyota are going because the taxpayer is tired of bailing them out. It's called throwing good money after bad. It's surprising that you post on a Stock Forum yet know so little about market forces.
As I've said before, he doesn't have to write a blank cheque.
Inject some capital into those businesses. For example, buy their plant and machinery and lease it back to them or give them secured loans. The sort of things other investors would do. And reserve some of our gas exports for local users at a reasonable price.
That would keep them going until some of the structural problems can be sorted.
Tell it to the Americans, Germans, Italians, Japanese, Chinese. They all assist their industries in one way or another.
If you were so concerned about market forces you would call for a ban on all imports from state owned industries , like most products from China, ban Etihad , Emirates and Air NZ from flying here etc.
As I've said before, he doesn't have to write a blank cheque.
Inject some capital into those businesses. For example, buy their plant and machinery and lease it back to them or give them secured loans. The sort of things other investors would do. And reserve some of our gas exports for local users at a reasonable price.
That would keep them going until some of the structural problems can be sorted.
They've had 25 years to sort out their structural problems, but the solution is to throw more money at them?
You need to face reality, producing a couple of hundred thousand cars/year will never be economic.
If throwing cash at them is the sort of thing other investors would do, then why aren't they doing it?
Taken to its logical conclusion, all your argument leads to is a country totally dependent on other countries for anything more advanced than digging a few minerals out of the ground, and this government does not even want to get a fair return from that.
Skills , zero. A nation of losers is the way we are going, but hey, let's just blame market forces shall we ?
Taken to its logical conclusion, all your argument leads to is a country totally dependent on other countries for anything more advanced than digging
Rubbish. They were saying the same thing 30 years ago when they started tearing down tariffs. Everyone would be out of a job.
I can't think of many people who today would argue that was the incorrect decision. But I guess some people will never be happy unless they can buy a pair of Australian made Dunlop Volleys.
It's coming true, it's just taken a long time to happen. The underlying under-employment rate is disturbing, as is youth unemployment, but I guess you don't care much about that.
As for Australian made Dunlop volleys, they may be more expensive, but they would be better quality than the imported rubbish.
You mean this youth unemployment? Looks lower to me. Maybe I'm being to glass half full.
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Yes, underemployment is a problem, but I can't for the life of me understand how using taxpayer dollars to prop up companies selling cr@ppy cars will fix the problem.
Sarcasm?
As I've said before, he doesn't have to write a blank cheque.
Inject some capital into those businesses. For example, buy their plant and machinery and lease it back to them or give them secured loans. The sort of things other investors would do. And reserve some of our gas exports for local users at a reasonable price.
That would keep them going until some of the structural problems can be sorted.
rumpole, why don't you suggest to your comrades in the unions to buy and manage these unprofitable industries....they have plenty of money....it would be like commune sharing for the workers who could also take out shares with their redundancy payouts ($300,000 to $500.000)...your problem will be solved. I think it would a great idea...what do you think?
But please don't ask the taxpayers to help you out if you start losing money.
Fraid I don't know anyone in a union, but maybe you should ask some of your mates running car parts businesses what they are going to do when the car makers leave.
Fraid I don't know anyone in a union, but maybe you should ask some of your mates running car parts businesses what they are going to do when the car makers leave.
So I pray, tell me dear rumpole, what are your solutions?
Inject more taxpayers money to prop up unprofitable overseas corporations?
I was hoping you would have commented on my idea of the unions and their members buying out Holden or Ford.
Probably the best idea is to let the foreigners depart then start from scratch, building vehicles for the local market with appropriate tariffs until the business gets on its feet.
The public should have an input into the type of vehicle they want, judging by sales it would be a medium SUV type family car.
Finance this by a serious resource rent tax , like Norway's. Source as many parts from local parts suppliers as possible, have an eye to export sales and require purchase of a certain percentage of local vehicles by State, Federal and local governments.
Probably the best idea is to let the foreigners depart then start from scratch, building vehicles for the local market with appropriate tariffs until the business gets on its feet..
The public should have an input into the type of vehicle they want, judging by sales it would be a medium SUV type family car..
Finance this by a serious resource rent tax , like Norway's. Source as many parts from local parts suppliers as possible, have an eye to export sales and require purchase of a certain percentage of local vehicles by State, Federal and local governments.
Noble sugestion.
Therein lies your problem.
10 years ago everyone wanted a large family car, today they want a medium sized SUV,
next year a small compact might be the flavour of the month.
Re tooling and making panel dies costs a fortune, that is where economies of scale comes in.
Australians buy 1million cars a year, that's all shapes and sizes.
Yet you are sugesting, we can re tool every time there is a change in consumer tastes and sell enough to cover our costs and compete with overseas products?
To make it viable, you would have to block the importation of any overseas cars and legislate to only allow the purchase of an Australian car.
You don't take into account emerging technology like 3D printing. It's not quite there yet for mass production, but there is no reason we can't be one of the first to develop its full potential. You don't change dies, you just change a computer program.
I don't think so. People are looking for quality which is why Mercedes and BMW are so popular. We could compete on price against those makes using better technology than is currently in our old factories.
.
Fraid I don't know anyone in a union, but maybe you should ask some of your mates running car parts businesses what they are going to do when the car makers leave.
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