Well said Meg1

It seems the biggest complainers come from those who are protected from the world market by many govt regulations, unlike the sugar industry which has to take world market price for their income.

If things were all fair, all Australians would be fully exposed to the world market, or all equally protected.

You only have to look at the history of oil prices verse oil.
Oil was more expensive in the past than now relative to wages.
http://www.itp.net/business/features/details.php?id=4921&category=

Agriculture commodities prices don’t get regulated up like urban domestic prices.
Yet who is doing all the winging?

We just an interest rate rise to suck up all the excess wealth in the urban areas, as shown by the housing boom.
We then have the fed govt giving a billion plus stimulus to the wage earner in the urban area, to buy non taxed energy for their cars.
This must mean we will have to have anther interest rate rise soon.

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Thanks dunart...

'It seems the biggest complainers come from those who are protected from the world market by many govt regulations, unlike the sugar industry which has to take world market price for their income.'

Never a truer word spoken...considering the sugar industry and other rural and manufacturing industries were supposed to be 'deregulated' under National (destroyer-of) Competition policy, it is interesting that instead, both sides of politics has instead supported heavier regulating of all of these industries in favour of the Corporate sector...there's those big bucks for election donations to consider,of course and he who pays the piper...calls the tune (or sets the policy, as the case may be.)

The hardest thing to swallow is why so many of the industry-based groups, like CANEGROWERS ORGANISATION and such groups supported the stripping of their members rights and all bargaining power...no wonder farmers are suiciding at the highest rate in this country's history. Farmers should link the salary packages of those industry-posers to the world price of their comodities...you'd see a lot better representation then...maybe farmers might make their 10pc return on investment...pigs might fly too, I guess.

That 'level playing field' we've all been promised for decades, makes both Federal and State governments around this country look like the fiscal fools they are...since we're the ONLY ones left playing the game...other countries recognise they can't expect their farmers, manufacturers and wage earners to pay the price for the rest of the world's subsidies and compete in an increasingly corrupt world market.

As you say, 'If things were all fair, all Australians would be fully exposed to the world market, or all equally protected.'

Your weblink re: oil and prices, etc. made interesting reading...of course the oil companies donate to the major parties so we'll all grow old waiting for the Federal government to encourage alternatives to oil and make the oil bullies share 'their' market with cheaper and more environmentally friendly alternatives...unless the oil companies can get their cut from that too...e.g., gas? What a coincidence...they just did.

tbc...

Cont...

'This must mean we will have to have anther interest rate rise soon.'

I'll take bets on the next interest rate rise before Christmas...unless JH calls an early election...you can bet there will be another .25pc before Christmas. Then the possibility of a drop before the Federal Election to sweeten us all up that they know what they're doing.

Ooops, does anyone really believe the Reserve Bank are entirely 'independent' of influence from the government or business interests...take a look at the make-up of the board...who's kidding who? We will not see interest rates lower than the US as we would then see an exodus of US and other foreign investment capital withdrawn from Australia and invested in the US resulting in a collapse in our economy - the recession we're borrowing to avoid...so we will continue to pay higher interest and live in our fool's paradise.

Then there's the water...if they can continue to con---vince us that we have to drink our own #^*#\*! because the water is running out? then they can sell us magic 'Franklins' dearer than the price of oil...and cash in on that too...endless election funding in all this.

Hmmm...surely this is not making us a little cynical about our pollies and some of the academics who are playing the game to stay employed or re-employed on the next round of 6 month contracts?

this is a bit of thread, but will appear in soon in press.
e-mail me at gavis7@hotmail.com meg and we can discuss more

The govt’s fuel package has to be the most absurd policy I have ever read about coming from a govt. The bit that really bites is that the Labour and Greens say it is not enough!

This policy is appeasing the urban electorate, without regard to the future. A quick search will find that oil prices have been equal to and even higher in the past relative to wages.

Growth in china and India will see an explosion in the world’s car fleet as they race to catch up to the unsustainable lifestyle of the 1st world.

What the govt has done is give a massive capital subsidy for people to use a cheaper non renewable un-taxed energy source (gas).
The bulk of this will go to the higher income, big car owners in the urban areas, people who could readily afford to change over to gas. This will increase their disposable income, the reason for the recent interest rate rises.

The regional areas, with a higher % of business vehicles, and less outlets for gas will be far less inclined to make the change as for a start they will not get the subsidy on any vehicle that has a business component.

With greatly increasing incomes in the urban areas( as demonstrated by the housing boom), and declining incomes in the regional areas, due to regulated declining terms of trade combined and this years drought, we have a govt regulating wealth to those causing the economy problems.

Farm gate agriculture commodity prices; have not changed much over the last 35 years.
My research show that the increase for a grain grower is in excess of 20 times over the same period.

this billion $ handout, will not go to those most in need it seems, but to buy votes from those least in need, with absurd situation of labour and greens saying they should get more!

The fledgling re-newable ethanal and bio-diesel industry gets nothing.

Good article. Water prices must be set by the market or shortages, wastage and inadequate investment will continue. Food price rises are likely part of the solution, not the problem.

cont

The fledgling re-newable ethanal and bio-diesel industry gets nothing.

They are going to subsidize the retail outlet to sell ethanol, very much an urban domain again for the financial windfall.

The multi national gas industry will continue to receive massive tax relief for years to come yet.

I say directing the windfall to renewable energy, via permanent tax relief, with only a road user component equal to that spent on roads being applied after a 10 year window to help the industry get established would achieve far better outcomes long term.
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We have just had an interest rate increase to suck up some of the booming urban economy’s wealth. We now have a policy from govt, with opposition party’s support to hand it all back plus some. Most will end up in the pockets of those that are managing the best, the private big car users of energy.

What this means is that the message will be delayed that we are entering a future of higher relative energy costs, particularly for liquid energy users.
The longer we leave it, the harder it will be to re-adjust in the future, as nothing is more certain than the impending demand exceeding supply.

We also have the Absurd policy where electric “scooters and cars” are still not legal in Australia. My web surfing tells me that they are about twice as efficient as petrol cars in the use of energy, as well as suiting most (90% plus) car trips very well in the urban areas. This is without the option of being able to use wind energy as the energy source.

The Green’s statements to date show that their “Greenness” has disappeared (did they ever have it?) as one would have thought they would have been very strong on reducing our reliance on non-renewable energy in favour of the many renewable alternatives.