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The Forum > Article Comments > Our politicians are repeating mistakes they made with the car industry and GMH > Comments

Our politicians are repeating mistakes they made with the car industry and GMH : Comments

By Brendan O'Reilly, published 8/4/2020

Overall, economic theory broadly labels industry subsides as a distortion. So why do Australian governments persist with these policies?

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Stuff Holdens. They were finished when they stopped manufacturing here. Importing Opels and calling them Holdens was pathetic. And, yes, building submarines is ridiculous. Military equipment is about our defence, not providing jobs for heavily unionised workers, particularly when the subs won't be ready before 2050, and will cost three times more than proven, off the shelf, American or Japanese vessels. And, a space industry in SA leaves one gobsmacked. We need to make things that real people need and want. The mooted reopening of Fauldings is a good example that would help us shake off the dependence on China for pharmaceuticals is a good example.

And what about the money we pay our politicians? Scott Morrison was getting $550 thousand per annum in July 2019. We are not getting our money's worth there, either. And, it's just too depressing to start on the cost of electricity any interested manufacturer faces in Australia.
Posted by ttbn, Wednesday, 8 April 2020 9:02:55 AM
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Scott Morrison was getting $550 thousand per annum in July 2019.
ttbn,
I never once heard any complaints when Rudd's went from Howard's $295,000 to $508,000.
But that's chicken feed in comparison to some Judges, Heads of Departments, Uni Chancellors & Gawd knows what others on 600-800 or even a Million Grand/annum !
I don't give a damn what anyone says but in my book no Public servant should ever be on more than the PM, particularly if they're no good at their jobs !
If private enterprise want to pay themselves huge salaries then they should be made to manage that without Negative Gearing/write-offs !
Hopefully, COVID-19 will make their antics a lot harder !
The loss of manufacturing here only has one culprit, Unions !
Posted by individual, Wednesday, 8 April 2020 9:33:35 AM
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Its always a little offensive when people suggest Australians don't have the ability to build the finest cars, tanks and aircraft carriers in the world.
Posted by progressive pat, Wednesday, 8 April 2020 9:55:48 AM
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Several things. We lost our car industry because the power bill became greater than the wages bill!

What should've happened was the conversion of the Holden motor company, to a co-op with large employee participation, even were that needed local, state/federal government support/patronage.

Instead of protective tariffs. Energy bills could have been reduced to the lowest in the world and (increasingly automated) production converted to electric. With new, carbon-free, world's safest, cleanest, cheapest power, i.e. dispatchable nuclear power! As a proven beyond doubt, concept!

I mean range was once the limiting factor. But the genius of cling wrap thin, underlay graphene highways, means an electric vehicle equipped with a magnetic induction plate, can be charged on the go on any part of any graphene highway or byway. Melbourne to Darwin without stopping to recharge, doable in a self-driven, autonomous vehicle!

And given a modicum of intelligence at the helm as opposed to hidebound, tin-eared, recalcitrant, nincompoop idealogues? The government would understand, that this is our future along with the carbon-free nuclear energy! Our last models that rolled from our production lines were as good as anything produced anywhere in the world!

And given this industry is restarted a the suggested model, could be again! While we still have the local expertise!

As for submarines? Could be the worlds fastest, safest and most deadly if refitted as nuclear powered that instead of torpedoes, carried half a dozen mini-subs equipped with underwater capable RPG's

And given the minis would be made from stronger than steel acrylics, and powered by steam venturies, invisible to all current technologies and able to eyeball their potential targets with human eyes and night vision?

Via a shipbuilding co-op, we create for defence and export to the world, purposes!

I submit, if we come out of the pandemic, with this as our first principle priority/goal and with if needed, helicoptered money? We will not have to endure a depression or even a recession. Particularly if we extend that principle to all new industries and missing self-reliance, manufacturing!
Alan B.
Posted by Alan B., Wednesday, 8 April 2020 10:04:44 AM
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Individual: Hear, hear and well said!

Take care and stay safe.
Alan B.
Posted by Alan B., Wednesday, 8 April 2020 10:07:26 AM
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Militant unions have been the bain of all civilised economies the world over!

Say what you like, explain away what you like? But all destroyed as exporting, income-earning entities at the altar of industry destroying, militant union demands! Most Australian unions are free of this industry destroying bastardy. But not all!

The only industries or enterprises never ever sullied by unions, were and remain, co-ops! Given we convert our economy to this free-market private enterprise model? DEAL OUT THE UNIONS FOREVER!

Co-ops were the only, private enterprise, free-market business models that survived the great depression largely intact!

And have no equal in private or public enterprise for productivity, or indeed, the best possible wages and conditions!

Labour will not support them or help them start up. Given that would end the rivers of gold that flow from them or indeed the Brutish BS rhetoric?

And they very reason we ought to install them whenever and wherever we can!

Many hibernating enterprises will restart all but crippled and in terminal decline, unless they ask their workforces to become their junior partners, who then will share a known percentage of available profits and do their level best via extreme self-interest to not just refloat their enterprises, but ensure they rebound to, much, much more than they were, via maximised efficient productive outcomes and with the very flexibility and load sharing needed to succeed beyond what a pandemic crippled enterprise, could ever in their wildest dreams, expect or realise.

When they do see this reality, will understand why it was that only co-ops almost alone survived the Great Depression or why the Celtic economic miracle took a basket case, Irish economy and turned it into the economic miracle it became before it was cruelled by debt-laden foreign real estate investors!

And something we need to exclude, once we are again a productive, income-earning and tax-paying inclusive economy/society!

We understand, we are all in this together! And in truth always have been! But, blinded by often idiotic ideologies and the hidebound idealogues, driven by their insane imperatives
Take care and stay safe
Alan B.
Posted by Alan B., Wednesday, 8 April 2020 11:24:51 AM
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individual,

Most non-politicians getting big money have qualifications; politicians do not. Rudd wasn't even worth the basic wage, but Morrison is in the chair now. My sentiments apply to all of the dropkicks, irrespective of party. And, I am a conservative. There is no conservative party in Australia.

PP,

It's not about ability, it's about economics. We don't have the market for cars: that's why the industry had to be so heavily subsidised; that and the gross greed of unions and workers.
Posted by ttbn, Wednesday, 8 April 2020 12:33:52 PM
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Snowy 3.0 is a good idea if you will have a lot of wind and sun power
at the wrong time of day. You buy it cheap and pump up, then when the
sun sets and the wind dies, you sell electricity dear.
Doesn't matter if you loose 15% in heat, you make money.
However that depends on you being able to build a renewable energy system
and a high grade grid all around Australia to chase the wind.
If as it is now looking more likely such a renewable system is
unaffordable then nuclear is what will be built and Snowy 2.0 is a dud.

As for submarines the reason we need so many is that it takes so long
to get to the patrol areas.
Subsidies after the current problem will mean that there is no money
available for such luxuries.
Posted by Bazz, Wednesday, 8 April 2020 3:33:04 PM
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Bazz,
I'm puzzled why you think such a renewable energy system is unaffordable now; to me it looks more affordable than ever. Meanwhile nuclear energy is looking less and less affordable in Europe and America. SMRs have been failing to deliver on their promises for decades, and now large reactor costs seem to be out of control.

Snowy 2.0 may yet be a dud, but if so, it will be the result of competition form other storage technology such as batteries.
Posted by Aidan, Wednesday, 8 April 2020 4:00:18 PM
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Aiden, Solar & wind are only cheap if you do not have to duplicate them.
The numbers I have seen seem to be suggesting big duplication factors.
And no, I have not kept the urls of the articles.
The duplication factor decreases as the area involved gets bigger.
Because a turbine produces about 35% of nameplate kwhr it means the
duplication factor is 3 at a minimum. However whats the betting that in
a day the wind will be low speed at all three sites a couple of times a day.
So the factor is bigger than three, how much well that depends on the wx
and the size of the country.
I know, I know, batteries, and batteries that can carry the whole grid
because you can bet that a couple of times a month all wind farms will
be becalmed. Well, there might be one on Tasmanian west coast that has
a bit of decent wind.
Then as any sailor will tell you, just as the sun is setting the wind dies.
Posted by Bazz, Wednesday, 8 April 2020 5:20:46 PM
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Bazz: wasting your time with, Adian, mate! He will argue with himself just to prove you're wrong but only in his antinuclear at any cost, universe. The reason our collins class couldn't sail was mostly because they couldn't crew them? And because diesels are notoriously noisy even with the best mufflers.

And are so slow, can't beat a strategic withdrawal with any degree of safety, but act as target practise for the destroyer class and depth charges.

Collins-class are little more than tin coffins, because they don't have nuclear power plants.

And with that power could reportedly exceed fifty knots fully submerged and with the nuclear power, make as much oxygen as they need for months on end, even submerged on the bottom.

Any new sub, given it's diesel-powered? Will face the very same difficulties as the similarly powered collins! Knock, knock, here we are! And look flat out at fifteen knots! Gotta hand it to our decision-makers, they know exactly what they're doing and have the safety of the crews paramount and at front of mind.

Look, if anyone has difficulty finding a job after we've beaten the pandemic, probably a shoo-in, in the navy and submarine duty? make sure you have plenty of life insurance and that submarine duty is not included, in the fine print, exclusion list!
Alan B.
Posted by Alan B., Wednesday, 8 April 2020 6:12:48 PM
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