Yes David,I agree,I'm now investigating the possibility of importing from China since I can see the writing on the wall.If you can't beat 'em,join them.I only see this driving our wages lower in order for us to compete.

John Howard is making all this noise about IR reform,yet there is no mention of red tape reduction and getting Govt off our backs.I think NSW is headed for recession.This is mainly due to State Govt incompetence.Things are very tight at the moment and I don't see them improving very quickly.

There needs to be increases in productivity,but not at the expense of those least able to defend themselves.

What really annoys me about all levels of Govt is that there is no debate,just "faite accommpli" lump it or like it.

The Coalition will lose the next election if they don't dispense with the arrogance and allow reasoned debate to prevail. Australia will once again be confronted with the Labor economic vandals.

Ken Mckay is right,we will never be able to compete with China in labour or semi skilled manufacturing,but invest in Education and skills training.

I just wish that all Govts at least make an attempt to explain the method in the madness,since it alienates us and makes good people very cynical.

faustino,

have you looked at the make up of the current account deficit. If the dollar depreciated then the deficit would become larger. The j-curve does not factor in as the current account deficit isn't just traded goods but capital movements as well. As the private sector's overseas borrowingss are in either US dollars, Euros or Japanese yens predominantly then all a devaluation does is exasperate the current account deficit. Herein ends EC101 for those that do not understand basic economics. Lesson two productivity growth is slowing.

Industry strategies of under investing in skills development and engaging in a just-in-time strategy for skilled workers has led to huge skills shortages which place an economic contraint on expansion. Gee the market works apart from short sighted management policies doesn't it.

Managements answer is to complain about the high wages for apprentices, yet what is the reality. Huge incompletion rates because apprentices can earn more doing general labouring duties or working in supermarkets. The market solution would be to increase apprentice wages to match but again the managers are not doing this and the whole economy is suffering.

The levels of advanced manufactured goods is declining not because of "unfair" competition from China and India but because of short sightedness from Australian managers who won't invest in skills development, who won't invest in research and development.

The focus on enterprise development has led to businesses to go off and develop their career structures but can't effectively provide the infrastructure to ensure the workers can be trained in their unique structure.

The tragedy is that the captains of Australian Industry do not look at the future, regard training as a cost and not as an investment and are wrecking our collective futures.

Slasher,the levels of manufactured goods are declining here because Labour in China is $1.00 per hour.They also have access to the latest technology.Don't forget also the Chinese are smart and work long hard hours.Their Govts don't burden them with regulation,taxation for social security,no super contributions or workers comp,sick leave,long service leave,unions or OH&S regulations to worry about etc.The family unit is their social security.They live to work and often at work in the lofts of their factories.They have also kept the Yen artificially low to keep their exports cheap,which the US is furious about.

The only way to compete is be totally robotic,but this does not employ many people.There is no such thing as a level playing field,and there is no way we can compete in manufacturing.

arjay, i was commenting on advanced manufactured goods not the products of sweat shops, suggest you gain basic understanding of economic terminology so you can make informed comments.

As a trade unionist who marched against John Howard's new industrial legislation, I think I can appreciate both sides of the argument.

John Howard is my political enemy. But he is probably the most popular and trusted Prime Minister that this country has ever had and I think that he is sincere in his desire to make Australian industry more competitive and productive.

In addition, I sympathise with those courageous people who have the courage to open businesses and give people jobs. I can understand that they should have the right to get rid of workers who they consider are unproductive or even counter productive.

On the other hand, unless the trade unions can keep some of their power it is inevitable that working conditions in this country will go backwards. As a member of the building industry, I can already see this happening. I have worked six day weeks and ten hour days for 13 months now and there is no end in sight.

I have even worked on one site where zombiefied men with thousand yard stares were working 12 hour shifts, 7 days a week. The customers who owned this site and who were demanding an unreasonable and rediculous finishing date for the work, had just given their managing director a $60 million dollar retirement handshake.

The skilled tradesmen working these hours were only doing this because they were frightened of losing their jobs. The cyclical nature of construction work means that there is feast or famine. Unless you work killing hours when things are good, then you are the first to get the boot when things turn bad.

The new laws will make this worse and they will reduce the pay of men who's working conditions are often pretty bad and appear to me to be declining.

Never thought I'd hear myself saying this - but - Redneck has raised some very good points.

Clearly a skills base is needed to compete successfully - there is no point in trying to compete with low wage Asian labour - to do so would turn Australia into a third world economy.

We need to rethink our approach and offer a higher level of technology - we presently have the people, the knowledge and the ability but do we have a government with heart enough to make Australia truly competitive?

The IR changes would indicate that Howard is taking the easiest solution - very good at taking away, but lacks the 'ticker' to put in place viable infrastructure to make Australia the 'clever country' we were once touted as being.