579, the loss of confidence is fair and square the fault of this government.

The GFC.

Yes, it DID have an impact and, if not for the billions that had been carefully saved by the previous government, god knows where w would be now.

But, while I accept that the GFC was the grounds for the Rud governments, failed stimulus initiatives, it was by no means the cause of post GFC flops like, fuel watch, grocery watch, the solar mess or the live export debacle.

Confidence starts from the very top, that being large business and, if large business is confronted by a government that wants to shift the goal posts, then they often hesitate.

Now when large business hesitates, this lack of confidence filters down the line, right to the consumer, many of whom are employees, who are either under employed, or, they are feeling insecure about their jobs about now.

Anyone who spends money needs the security of knowing they can replace it.

That security, to a large extent, has gone, and this is what has caused much of the loss of confidence and, this lack of confidence wasn't there mid 2000's.

*RehTub* I think essentially you raise a number of interesting points, but I do not know that you always hit the nail on the head when identifying the causes of the problems.

..

See, whilst I feel for the people who have lost their jobs, and whilst I strongly support Australian manufacturing, I am not a big fan of Holden and Ford. That's not to say that I wouldn't like to go for a fang in a HSV however ..

Back in 1987 when I was in Japan, I could buy a plum little Series 1 RX7 from most excellent auction facilities for $AU500.

The crew at that time ensured that all the boys got one for cost, and otherwise were selling them for far cheaper than the normal dealer price of about $AU10,000.

Back then, to put a new SkyLine up against the best from Ford & Holden and arguably they were largely equivalent. But when you consider that half the cost of the SkyLine was comprised of duties and taxes, well!?

And then what, turns out that on the race track that the SkyLines were just so hot, that the wimpy sooks banned them from the big race.

I don't see that the current arrangements drive competition and inovation so, again, whilst I am concerned for the workers, I am of the view that this industry is well overdue for overhaul.

Westpac-Melbourne

by: James Glynn
From: Dow Jones Newswires
March 14, 2012 11:00AM
CONSUMER confidence slumped in March as uncertainty over the global economy persisted and major banks raised their home-loan rates in spite of two successive rate cuts by the Reserve Bank of Australia.

The Westpac-Melbourne Institute's index of consumer sentiment fell 5 per cent in March from February, taking it below the level in mid-2011, as confidence was also dampened by job cuts in certain export sectors of the economy hurt by the country's high currency.

The downward drift in the benchmark interest rate in the second half of 2011 was partly offset by major banks lifting their own mortgage-lending rates citing rising funding costs, a direct knock-on effect of the ongoing instability in global markets.

The consumer-confidence index fell to 96.1 points in March in seasonally-adjusted terms from 101.1 points in February. In annual terms, it dropped 7.7 per cent.

"With the Index below the 100 level, pessimists clearly outnumber optimists," said Westpac chief economist Bill Evans.

"With the two previous rate cuts in November and December being passed on in full by the banks, it is reasonable to assume that many borrowers expected a further cut.

"Instead, mortgage rates were actually increased in the following week, with banks raising mortgage rates by an average of 0.10 per cent," he added. "It is likely that this reversal has impacted confidence."

The hit to confidence also follows news that the economy shed 15,000 jobs in February while economic growth fell well short of expectations in the fourth quarter of 2011.

The economy scratched out growth of just 0.4 per cent in the fourth quarter, confirming that it is growing at a pace well below that expected by the RBA, and at a rate that may not be sufficient to avert further upticks in unemployment.

The RBA already expects unemployment to rise to 5.5 per cent by mid-year from 5.2 per cent currently.

Some economists say that forecast is starting to look overly optimistic, with significant job-shedding already taking place in areas of the economy such as manufacturing

So 579, are you now saying that you agree that all is not well.

I recall you recently told me to 'relax' as things were nit as bad as some might think.

Well, the mail is that rates will be cut, by as much as 5 points.

I am afraid this will be to little to late, and that's assuming the banks pass any rate cuts on.

In any case, any rate cut will be swallowed up by increases brought on by the soon to be introduced carbon tax.

Or are you still, in denial there to?

Can't imagine how a company, servicing the likes of Ford can go broke.

I guess it's like many businesses, whereby their costs have got out of hand.

I am afraid they are just the tip of the iceberg, as there will be plenty who follow suit.

Then what do you suggest we do, shut the gate after the horse has bolted perhaps!

My tip is we are headed for another recession.

Boy, this time I hope I am wrong.

Sorry 99, or 579 or whatever, but rehctub is right.

“Can't imagine how a company, servicing the likes of Ford can go broke.”

I don’t expect you to have any comprehension of manufacturing principles however; we do invite you and relish the opportunity for you to articulate any understanding you may have in relation to this matter.

Most manufacturers operate KanBan, which is part of the JIT manufacturing system. This system is managed and governed by the ISO 9000 and AS 35XX Quality control standards.

Each supplier to the supply chain is required to commit to, and guarantee compliance with the internationally certified standards. These require that not only will the product you supply be available to the JIT MFG process at the precise time and location to meet JIT specifications. It also requires that as a SUPPLIER, you are contracted to maintain financial viability and as a good corporate citizen (with specific contractual obligations). In the event that as a supplier, you are no longer compliant with the international quality control standards, you are legally obliged to notify both your upstream and downstream contractors.

So my little ignorant, illiterate and very vocal gob smacker, perhaps you might offer some insight as to why and how the due process of internationally recognized processes were a) bypassed b) interfered with c) ignored or d) politically overridden?

Before you go off into one of your traditional gobbledygook responses, let me offer both a word of caution and a clue. TRADE UNION INTERFERENCE!

Before you respond with something that causes you even more embarrassment, might I suggest you do a little research first?

Just a suggestion. Ready when you are.

We have a recognition award waiting for you, the “Troll of the Week Toady Award”

Yes spindoc, this 'shifting of the goal posts' (changing IR laws and or government/union intervention) is what causes much of the concerns and problems associated with running the modern day business, and it is something these guys simply don't understand.
G
Take a company that wins a contract to service the needs of a large company. Let's call it Ford.

They usually go to tender and, a major portion of their planning is thier staffing costs.

So off they go, investing millions and all is well.

Then, along comes one Julia Gillard, and her union buddies who, after having been sidelined for more than a decade, simply had an axe to grind with regards to IR laws.

Now one has to ask, pre FWA legislation, were the workers happy with their arrangements. Obviously they must have been, or why else would they have worked there for twenty plus years.

So, in come the changes, in come the unions and whamo, the bottom line is slashed, because the likes of Ford simply can't afford to pay any extra for their car parts, as they to are effected by the changes to IR, so this company has to take the loss.

They have to take this loss, as they have millions invested and dont have the luxury of just walking away.

Now it's not only this project that is effected, but often, this company won't take that risk again, as the uncertainty about costs is to greater risk, as these costs, along with rates, fees and consumables, have become to unpredictable.

Continued