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The Forum > Article Comments > Co-operate or perish > Comments

Co-operate or perish : Comments

By Tristan Ewins, published 5/2/2014

Government should help SPC-Ardmona 'Return to its Roots' as a democratic co-operative.

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I believe the co-operative structure is the only hope for... Pretty much everything, really (QANTAS, Holden, Ford...).
I also don't have a problem with governments providing low interest loans to well structured businesses -provided of course they can come up with a realistic business plan, clearly showing how they will repay the loan, which should be secured by the shareholders.
I see no reason why such loans couldn't be made over long terms, say 50 years. Long term contracts may help overcome the 'swings and roundabouts' of changing governments (keep the bastards honest).
I suspect however, the problem is largely about size. When companies get “too big to be allowed to fail” like CCA, they really need to diversify and constantly expand, to cover their own inherent incompetence (Peter Principle) and the inevitable decrease in economies of scale.
What we're seeing all over the world is the gradual failure of infrastructure, brought about by shareholders demanding short term returns, and popularly elected governments trying to remain popular. I suspect CCA was depending on a Labor Government handling their infrastructure expenses for them.
Smaller co-ops would be better funded (or assisted) by local governments who after all, would be the major beneficiaries of local investment.
Posted by Grim, Wednesday, 5 February 2014 11:44:31 AM
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Should government be using the taxes it takes compulsorily from me to subsidise the subsidiary of a large global company? That truly sucks: socialised losses and capitalist profits.

If the union movement wants to grease the palm of a global they have the millions they themselves tax from workers. OK unions, your claimed profitable business to go. That $25million is peanuts to Big Union, but a lot to a pensioner who cannot afford those products anyway and is reduced to window shopping in the shopping aisle.

Is it true that those workers can get nine weeks ARL a year? NJo matter, Big Union knows how to run the shop and Big Union has an investment there for its taking any day of the week. So go for it!

The whining Left can be your shareholders. There are many of them.
Posted by onthebeach, Wednesday, 5 February 2014 12:25:43 PM
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A thing which many seem to overlook is the SPC market.
Who buys the products?. Why?
It's food - admittedly a neccessity, but there is huge competition from other suppliers of foodstuff.
As a consumer with limited discretionary spending, I want a product that's good quality, readily available and I want it at the cheapest price.
There are ways that SPC can compete with foreign imports - hold the quality but lower the price to make the product more attractive financially, or increase sales to the extent where overseas markets can be served thus amortising production and distribution costs.
Level playing fields only apply if you want to play in the first place, so don't try artificial national image-building.
Posted by Ponder, Wednesday, 5 February 2014 12:35:11 PM
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Me, I am breaking out the Vacola bottling outfit, polishing up the EK sedan & waiting to see where this all goes. WE (Straylyuns) haven't had a proper Aussie manufacturing industry for over 30 yrs, unions, Labor, multi nats, & snake oil salesmen AKA Liberal/CLP have all had their input...us silly buggers let it all happen under our noses. Bring back the Ostrakos Vote I say!
Posted by Albie Manton in Darwin, Wednesday, 5 February 2014 1:19:36 PM
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Ponder,

Well said and that could be a fruitful line of inquiry for this thread.

I do voluntary work and many are aged, living independent lifestyles. Even those who planned and made the sacrifices to provide for later are now skint and doing it hard. Ramped up Council rates and user pays make the old poor very fast.

There is not a single person I meet in my voluntary work who wouldn't like to eat more fruit and vegetables, and they prefer local produce. The price of particular foods, (say) fresh and canned is not inelastic. Many people on pensions, on fixed incomes and low-income earners do without the foods that are good for them and they want to buy because the price is out of their reach. They cannot shop in the way of the comfortable middle class 'Progressive' experts that hold forth on OLO and in the media, doubtlessly quaffing their 'organic' skinny latte coffee as they do so.

The simple reality is that many foods that were regarded as 'essential' and were cheap by our parents are now perceived as luxuries by millions of consumers. Take the students who live near me, who are devastated that the Qld government, specifically that fool of a Transport Minister, Scott Emerson MP, [of Segway fame!] has overnight removed their transport assistance. Sly - his new guidelines exclude the great majority of present recipients. The extra $40+ a week to use public transport for PT work and lectures attendances has to come from somewhere. Any wonder that noodle sales are skyrocketing, canned Aussie fruit stays on the shelves and a cheap can of imported pineapple is a treat?

Maybe union heavies could live like a student, a low income earner, pensioner or self-funded retiree for a while to understand how the other half live.
Posted by onthebeach, Wednesday, 5 February 2014 1:26:47 PM
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I love reading nevertrustwhatiwrite's posts their so full World net daily talking points. Reality don't live in his house.

The government needs to make a call about what industries it believes we must have in austrlain and except that they are likely going to have to provide support for them. the reality is there is little in Australia that is not done elsewhere better.

government funding of the movie industry anyone.
Posted by Cobber the hound, Wednesday, 5 February 2014 1:35:31 PM
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