The state of the economy at the street level

[Dona Ferentes]

"The other thing that's changed significantly is that the labour markets have loosened in both countries [A+NZ]. And again, more so in New Zealand, but the reality is it is far easier to get people into the key roles we have in the business, whether they be freight sorting, customer service drivers and so on.”
- Mark Troughear, CEO, Freightways Group Ltd

 

[JohnDe]

I feel for this business. No matter what we do to try and reduce waste and costs the bills keep going up.

This month, its invoice was $109,580.10 – including almost $34,350 of market or network charges – despite using almost 6200 fewer hours.​

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After spending almost $1m on solar panels – which will cost significant money to repair – energy efficient lighting and special pump equipment, its annual power “spot price” bill is almost $2m.​

​

“It just would be nice if we had reliable power 24 hours a day and grid stability because it’s a mess,” said Mr Knispel, company boss for 10 years who employs more than 200 workers.​

Leading regional businesses crippled by country’s highest electricity costs​

Surging power bills have crippled leading regional SA businesses as the country’s highest electricity costs send staple agricultural produce prices soaring.

https://www.adelaidenow.com.au/news.../5d6d76d90017fb234626d0b7db888fc7#share-tools

Nippy’s boss Ben Knispel at his Regency Park warehouse in Adelaide on Monday. Nippy's electricity bill has surged. Picture: RoyVphotography

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Leading regional South Australian businesses have been hit with surging power bills as the country’s highest electricity costs cripple the agriculture industry and send staple produce prices soaring.

In a striking example of an unfolding crisis, iconic firm Nippy’s monthly electricity bill more than doubled in a year despite the drinks manufacturer using fewer power hours.

Other industries have been slugged with bill increases, adding tens of thousands of dollars to overhead costs.

Despite expensive investment in renewable equipment and seasonal producers being in “off seasons”, country owners told how “network charges” still sparked large bills.

Concerned farmers have also been forced to employ special “energy consultants” to help save money.

As a new political row erupted, business chiefs revealed energy costs were among the top concerns for firms desperate to avoid hurting customers in a cost-of-living crisis.

Ben Knispel, joint managing director of the Knispel Group, the company behind the Nippy’s brand, said the increasing rate of electricity was a major concern.

The firm, which has two Riverland factories at Waikerie and Moorook along with a Regency Park warehouse in Adelaide’s northwest, had a “great” multi-year contract end in December 2023.

The company, founded almost 100 years ago and famed for its citrus juices and flavoured milk, was invoiced $51,600 last June for 260,073kw/h of use at its Moorook plant.

This month, its invoice was $109,580.10 – including almost $34,350 of market or network charges – despite using almost 6200 fewer hours.

After spending almost $1m on solar panels – which will cost significant money to repair – energy efficient lighting and special pump equipment, its annual power “spot price” bill is almost $2m.

“It just would be nice if we had reliable power 24 hours a day and grid stability because it’s a mess,” said Mr Knispel, company boss for 10 years who employs more than 200 workers.

“It’s just so frustrating doing the right thing, trying to reduce our footprint.


Mr Knispel said he wanted stability in the market. Pic RoyVphotography

“But it’s all over the place. We’re growing and we’re doing OK but we will look to have price rises, sadly, as we can’t absorb these costs forever.”

 

[divs4ever]

Not too far from the truth.

I have been involved with policy discussions both here and in the UK.

In the UK it was the cigar room of a swanky London restaurant, in Oz it was around a bbq at a central Brisbane Park (can't remember the name of it)

In both instances there was discussion about the greater good as the people there saw it, but there was also discussion on what might gain the votes of the plebeians, irrespective of the greater good.

In the UK there was the prospect of power which did eventuate, which meant all those greater good considerations were straight out the window in favor of gaining power.

I have stories.

a novel .. perhaps ?

although these days a sub-stack blog might be more lucrative ( selling subscriptions and PDF downloads )

 

[Value Hunter]

In the near future the tax system will be unable to support all the retires that have nothing but a pension to support themselve. That is why governments are introducing rules that will make self funded retirees less able to access public funded schemes such as public hospitals, and so on.

Yes as always the government will punish the prudent people.

 

[farmerge]

Yes as always the government will punish the prudent people.

We have 2 family members both extremely well off who use the public purse to its limit. When questioned about not being in private health, well why should we, it's our right to go down this path.

 

[Value Hunter]

Also the massive waves of immigration are still destroying the economy pushing houses prices up and pushing wages down. GDP per capita in Australia measured in U.S. dollars (the Aussie dollar has devalued a lot) is lower than it was in 2013 and yet somehow people like Value Collector stupidly migration is good for the country.

 

[Value Hunter]

We have 2 family members both extremely well off who use the public purse to its limit. When questioned about not being in private health, well why should we, it's our right to go down this path.

I am sure they have probably paid a vast amount of tax over their lifetimes so they probably feel its only fair to get a fraction of those tax dollars returned to them no?

 

[Value Hunter]

"The other thing that's changed significantly is that the labour markets have loosened in both countries [A+NZ]. And again, more so in New Zealand, but the reality is it is far easier to get people into the key roles we have in the business, whether they be freight sorting, customer service drivers and so on.”
- Mark Troughear, CEO, Freightways Group Ltd

Meanwhile unemployment is surging yet we continue to import plane loads of unnecessary migrants.

 

[divs4ever]

Also the massive waves of immigration are still destroying the economy pushing houses prices up and pushing wages down. GDP per capita in Australia measured in U.S. dollars (the Aussie dollar has devalued a lot) is lower than it was in 2013 and yet somehow people like Value Collector stupidly migration is good for the country.

well REGULATED migration would be good for the nation .. unlike the original prisoner dumping policy we started with

however implementing that policy and regulations seems to have some major flaws including speedy verification of desirable migrants and a suitably swift entry process ( forcing some to jump the line )

the OTHER issue , is keeping Australia attractive to talented citizens who might be tempted to 'travel the world for experience and profit

a third issue is keeping infrastructure adequate to cater for the increase in population ( before the bottle-necks are blindingly obvious )

immigration .. OK , but doing it properly and thoughtfully is a must ( and i don't mean our retarded 'White Australia Policy of yesteryear )

... but we won't , watch all the illegals over-stay during the Brisbane Olympics ( if we actually have it )

 

[Value Hunter]

well REGULATED migration would be good for the nation .. unlike the original prisoner dumping policy we started with

however implementing that policy and regulations seems to have some major flaws including speedy verification of desirable migrants and a suitably swift entry process ( forcing some to jump the line )

the OTHER issue , is keeping Australia attractive to talented citizens who might be tempted to 'travel the world for experience and profit

a third issue is keeping infrastructure adequate to cater for the increase in population ( before the bottle-necks are blindingly obvious )

immigration .. OK , but doing it properly and thoughtfully is a must ( and i don't mean our retarded 'White Australia Policy of yesteryear )

... but we won't , watch all the illegals over-stay during the Brisbane Olympics ( if we actually have it )

During COVID when the borders were locked down and we had no migration unemployment was falling rapidly and wages were actually rising at a good pace.

But apparently for some reason we need backpackers and Indian and Chinese students to work in our cafes, hotels, petrol stations, supermarkets, etc meanwhile there are plenty of unemployed local people who can't find a job.....

I mean sure if we importing mass numbers of GPs, Cardiologists, etc every year to fill actual skill shortages that we have that would be something, but that isn't what Australia is actually doing. Plenty of entry level jobs are awash in a flood of oversupplied applicants thanks to migration meanwhile the skills shortages in highly skilled jobs where we actually need migration those shortages stubbornly persist year after year. I would rather have zero net migration compared to the system we have now.

 

[farmerge]

I am sure they have probably paid a vast amount of tax over their lifetimes so they probably feel its only fair to get a fraction of those tax dollars returned to them no?

Knowing them as I do, they have paid plenty of tax, the mantra is "I've paid more than my share"
Actually, it is mine also.

 

[divs4ever]

During COVID when the borders were locked down and we had no migration unemployment was falling rapidly and wages were actually rising at a good pace.

But apparently for some reason we need backpackers and Indian and Chinese students to work in our cafes, hotels, petrol stations, supermarkets, etc meanwhile there are plenty of unemployed local people who can't find a job.....

I mean sure if we importing mass numbers of GPs, Cardiologists, etc every year to fill actual skill shortages that we have that would be something, but that isn't what Australia is actually doing. Plenty of entry level jobs are awash in a flood of oversupplied applicants thanks to migration meanwhile the skills shortages in highly skilled jobs where we actually need migration those shortages stubbornly persist year after year. I would rather have zero net migration compared to the system we have now.

i remember when travelling in Europe ( in 1990 ) on a bus tour in Switzerland , the tourist guide saying there were FIVE THOUSAND illegal migrants in Switzerland , and the Government was trying very hard to find them .. well i laughed and told another tourist that in my area in Brisbane there was more than that and the Government wasn't so good at finding them ( because i shared workplaces with more than twenty of them in some workplaces .. only one regularly raided by officials .. and that one was 'a closed shop ' so stuffed if i know how they got union membership ' without even a work visa )

 

[farmerge]

During COVID when the borders were locked down and we had no migration unemployment was falling rapidly and wages were actually rising at a good pace.

But apparently for some reason we need backpackers and Indian and Chinese students to work in our cafes, hotels, petrol stations, supermarkets, etc meanwhile there are plenty of unemployed local people who can't find a job.....

I mean sure if we importing mass numbers of GPs, Cardiologists, etc every year to fill actual skill shortages that we have that would be something, but that isn't what Australia is actually doing. Plenty of entry level jobs are awash in a flood of oversupplied applicants thanks to migration meanwhile the skills shortages in highly skilled jobs where we actually need migration those shortages stubbornly persist year after year. I would rather have zero net migration compared to the system we have now.

What I call the mundane jobs which are filled by the overseas students etc should and could be taken up by the locals.
But is it because they deem it below their lofty employment standards to work in a servo or similar.
If there is work within a reasonable proximity, then they should be made to take it on.
Cut the dole if they baulk at it.

 

[farmerge]

i remember when travelling in Europe ( in 1990 ) on a bus tour in Switzerland , the tourist guide saying there were FIVE THOUSAND illegal migrants in Switzerland , and the Government was trying very hard to find them .. well i laughed and told another tourist that in my area in Brisbane there was more than that and the Government wasn't so good at finding them ( because i shared workplaces with more than twenty of them in some workplaces .. only one regularly raided by officials .. and that one was 'a closed shop ' so stuffed if i know how they got union membership ' without even a work visa )

Brown paper bag, gets almost anything.

 

[wayneL]

Knowing them as I do, they have paid plenty of tax, the mantra is "I've paid more than my share"
Actually, it is mine also.

I don't know anyone who baulks at paying tax for worthwhile things. The public health system, defense, infrastructure, maybe even some social programs that promote societal harmony (like promoting courtesy on the roads and such like).

The fact is that we are paying tax for well in excess of these necessary functions of government, and this is what all but the Value Collectors of the world object to.

It is stealing my/our production and our ability to create a greater GDP, in favour of pork barreling, ego projects, and globalist agendas.

Those famous words of Kerry Packer all those years ago absolutely nailed it to the floor.

 

[farmerge]

I don't know anyone who baulks at paying tax for worthwhile things. The public health system, defense, infrastructure, maybe even some social programs that promote societal harmony (like promoting courtesy on the roads and such like).

The fact is that we are paying tax for well in excess of these necessary functions of government, and this is what all but the Value Collectors of the world object to.

It is stealing my/our production and our ability to create a greater GDP, in favour of pork barreling, ego projects, and globalist agendas.

Those famous words of Kerry Packer all those years ago absolutely nailed it to the floor.

@wayneL Spot on.

 

[Value Hunter]

What I call the mundane jobs which are filled by the overseas students etc should and could be taken up by the locals.
But is it because they deem it below their lofty employment standards to work in a servo or similar.
If there is work within a reasonable proximity, then they should be made to take it on.
Cut the dole if they baulk at it.

I don't agree with this. If we stopped importing the immigrants then wages for those jobs would rise and also working conditions would improve and thus people would be incentivized to fill those jobs. Its not like those jobs will literally remain unfilled. If the pay and working conditions are right somebody will do it.

 

[divs4ever]

I don't agree with this. If we stopped importing the immigrants then wages for those jobs would rise and also working conditions would improve and thus people would be incentivized to fill those jobs. Its not like those jobs will literally remain unfilled. If the pay and working conditions are right somebody will do it.

that is the way things worked , when i was a worker

during periods of unemployment , job-seekers had their own informal information network , ( say company XZY didn't pay the full wage , or got 'a bit friendly ' with female workers ' etc etc )

good companies had multiple applicants , some others got empty waiting rooms

 

[Garpal Gumnut]

Pears came down in price since my last post.

But they've just gone up again.

gg

 

[TimeISmoney]