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The Forum > Article Comments > IR reform: sharing the pain and gain > Comments

IR reform: sharing the pain and gain : Comments

By Nicholas Gruen, published 24/11/2005

Nicholas Gruen argues the best time for IR reform is during an economic downturn.

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Today "The Australian Newspaper" reported that the Federal Budget surplus is expected to be between $14-16 Billion. This being the case, we should be improving, Health and Education Funding, not as in previous years cutting it. We need more trained workers in the trades, Doctor's and Nurses are in a worlwide shortage, now is not the time for a Liberal Party assualt of the working class, rather it should be a time, for investment in the nation's most valuable capital, it's people. John Howard and the rest of the Liberal's who have spoken out in favour of this draconian legislation, taking us back to the Master/servant days of the 19 th century including Peter Costello who has been an advocate of this philosophy publicly, are to be condemmed. If they were fair dinkum about reducing costs to business, they would place C.E.O.'s under the same law, as their remuneration totals millions to only one individual. The recent Telstra announcement to cut 12,000 jobs in the bush, and export them to India, should bring Sol, a hefty bonus, however, no benefit to the Australian families left in the wake of the descion, we are clearly heading in the WRONG direction.Regardless of who leads the Liberal Party into the next election, it is now clear for all to see, what they stand for, we need change, and the only Party offering it is Labor.
Posted by SHONGA, Thursday, 24 November 2005 8:50:46 PM
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More and more of our businesses are moving off shore.Even skilled and professional sevices can be sourced in India or China.The bottom line is that if we are going to compete with them,we will have to live like them.So long as we continue to drop tarrifs,so must our wages in order to compete.Cheap overseas products eventually come at a price.We are just beginning to realise cost.
Posted by Arjay, Thursday, 24 November 2005 9:17:44 PM
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In inflation adjusted terms federal funding for Health in the budget has increased over 40% since Howard came to office. It is a total myth the idea that Howard has cut Health funding.
Posted by Terje, Thursday, 24 November 2005 9:25:52 PM
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QUOTE: rather it should be a time, for investment in the nation's most valuable capital, it's people.

RESPONSE: Yes I agree. Its time for some serious across the board tax cuts so that working people can keep more of their own capital. Howard and Costello preside over a big fat government that is completely at odds with their parties ethos. Capital should be in the hands of the workers and producers that grow the nation, not in the hands of central planners.
Posted by Terje, Thursday, 24 November 2005 9:30:11 PM
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I agree that we should have tax cuts. It's silly that people on social welfare should pay tax.
It would be simpler to have a tax free threshhold of $20,000 and move to the New Zealand system of the tax office telling you how much you should pay in tax, and if you disagree then you should complete a tax return. I am sure the ATO has a fairly good idea what most people's income is from checking employee PAYG returns and company dividend records.

Our reporting regime got a lot more complicated with GST and BAS and activity statements and accountants are currently having a field day.

Middle class welfare is wasteful as well, examples are things like medicare rebates and rebates for children.

Historically growth in Australia has occurred from government spending. Most research in this country has been undertaken by CSIRO and government departments. Private industry is good at collecting money but rarely turns out a good idea, the Wiltshire Staysharp knife is a notable exception.

Our infrastructure owes its existence to goverment monopolies. Compare Australian rural communities with similar communities in North America and Australian communities were on the grid earlier than their counterparts.

From my perspective I can see that these IR changes allow employers to reduce working conditions and pay rates at a faster rate than they are doing presently. Many Australians are going to feel the pain of reduced wages, higher living costs and very limited social welfare.
Posted by billie, Thursday, 24 November 2005 9:57:51 PM
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Mr.Howard and his coalition colleagues live in an ivory tower. They have no clue about how the ordinary Australian lives. Even now in a time when the Australian economy is meant to be buoyant, there are countless Australians struggling.

Mr. Howard claims that the new IR laws will create more employment; that does not appear to have happened when similar laws were used elsewhere.
For the ordinary Australian the proposed laws are mean and cruel, ample examples already exist to indicate this is a fact; rather than, an opinion. Anybody in doubt about this might try using Google.

The IR laws in the short term are great for Mr. Howard's big business mates. Once workers wages fall behind the cost of living; then, workers capacity to consume is reduced
Posted by ant, Friday, 25 November 2005 6:43:28 AM
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