Points taken Yabby, but are those involved in exploration and drilling necessarily contenders for ownership? I admit I don't know.

It just seems an irony that we abhor the idea of government-owned enterprises yet are quite happy to allow a system whereby a foreign government might end up owning the right to access Australian resources. Why not a scenario where the Australian people own the resource if the long term financial outcomes would well and truly cover the intitial costs?

rehctub,
I agree, many go into business without the right experience or talent to make them work.

examinator
It would be undesirable to dictate to business where they should establish. It is only possible, I would think, to create an economically favourable environment attractive to business, particularly in regional areas - such as access to VFT or other efficient transport options, taxation benefits, cheap land/rent etc

*but are those involved in exploration and drilling necessarily contenders for ownership?*

Pelican, very much so. But the risks in offshore drilling are so
great, that even large oil companies commonly share that risk
between them. So if a company wins the bid for the rights to drill
in a certain area, they then include others as partners, sharing
the drilling costs and thus sharing any potential losses, but also
profits.

With gas, various companies might find gas in an area, but processing
it costs billions, so they share facilities to do that. If you look
at the NW shelf, Woodside are the operator, but there are about
6 companies involved and WPL only own a small stake. Gorgon
also has a number of companies involved, with one being the operator.
Coughing up 45 billion$ to build the infrastructure, is not peanuts.

The best thing that Govt can do is to make sure that if companies
do find and ship resources, that they actually pay 30% company
tax here and don't just transfer price those profits offshore.
Then Govt earns royalites from the resource tax. With iron ore,
thats 5%, I'm not sure how much it is with gas.

All those taxes benefit you the taxpayer, without the Govt risking
a cent of your money on bad mining decisions. For mining is hardly
their expertise, apart from mining us for taxes.

I agree with the majority of all your comments with an exception of the following point:

Unfortunately one does not "truly know" if one has the skills and talents to run a particular business until they have tried. And I commend any person trying their hand to take over and/or establish a business [if not risking their home and family coffers in the process].

An example: my parents owned newsagencies. A good few years break was taken in between. My parents' working background prior to purchasing the first newsagency was a livestock carrier business [father started out as owner/driver of a semi-trailer] and my mother had worked in one position only in real estate for a couple of years.

They had worked hard to pay off most of their home before taking a bank loan.

May I add here that Dad completed school at a mere 14yrs of age with zero qualifications [admire his determination, motivation honesty and hardworking ethics]. Mum's academic background similar.

The Newsagency they purchased doubled and tripled in profits after Mum trained up Dad in all aspects of the business and their customers always returned over the years. Honesty, integrity, friendliness and ensuring customers were satisfied and happy receiving their papers delivered were key ingredients in running their highly successful businesses. Talents and skills in some areas perhaps; however the key attributes both possessed were paramount in their success. These attributes were passed on to my siblings and self also as my brother owns and runs the most successful hospitality venue that is widely acclaimed in his NSW city.

*Posted by Yabby, Monday, 8 February 2010 9:58:05 PM*

" ... prices are booming right now and that farmers are paid
around 4.50 a kg, it seems it would only take a couple of kg,
to pay for the whole lamb! Middlemen of course, are creaming it, all the way. ... "

http://catalogues.coles.com.au/portal/embedproductlist?Ntt=lamb&Ntk=Primary

Coles Butcher Lamb Leg Roast - $AU8:50 kg (was $AU12:49)

Farmer:
i. Cost to produce per kilo -
ii. Sale price per kilo - $4:50
iii. Gross Profit per kilo -

Transport to Abattoir:
i. Cost per kilo - $
ii. Sale price per kilo - $
iii. Gross Profit per kilo - $

Abattoir:
i. Cost per kilo - $
ii. Sale price per kilo - $
iii. Gross Profit per kilo - $

Transport from Abattoir to Retailer:
i. Cost per kilo - $
ii. Sale price per kilo - $
iii. Gross Profit per kilo - $

Retailer:
i. Cost per kilo - $
ii. Sale price per kilo - $8:50 - $12:50
iii. Gross Profit per kilo - $

Anyone care to have a go at filling this in?
Feed the Man meat!

OH, excluding labour, my rice wine is coming at a bit less than $AU1:00 per litre, with different strains likely producing 16 - 20% alc p.v.

..

I must try some *Moulin Rooz Absinthe* when I'm next in town and go
for a "fly" with the "Green Fairy.:

;-)

Might give some Jappo microbes a run, found here:
http://www.tibbs-vision.com/sake/index.html

Farmer:
Unknown as it depedns on seasons.

This exercise must be carried out on a 'whole lamb' as it is impossible to buy a leg of lamb from the farmer.

Transport to Abattoir:
Also unknown, perhaps someone else can add this.

Abattoir:
Depends on many veriables. Hide prices make a large difference and the demand at present is low.

Transport from Abattoir to Retailer:
i. Cost per kilo - $ Unknown, usually charged at 10cents per kilo
ii. Sale price per kilo - $ $6.20
iii. Gross Profit per kilo - $ Unknown

Retailer:
i. Cost per kilo (whole lamb) - $ 6.20
ii. Sale price per kilo - $8:50 - $12:50
iii. Gross Profit per kilo - $1.40 - 5$5.40 16.5% - 43.2%

Now if one buys a lamb for $6.20 kilo, then sells the legs for $8.50 kilo, they will most likely go broke. Mine sell for $12.00.

Now no disrespect to your parents, but, running a newsagent can hardly be compaired with running a full blown meat works, or even a butcher shop.

Firstly, all that is really required to run a newsagent is good customer relations and people skills.

The risks are very small as most items that don't sell are refunded by the supplier. Also, many items are sold prior to having to pay for them.

This is why newagents are so expensive to buy as the skills required are low and the risks are minimal.
Running a meat works in comparison is huge.