Holden is now asking for an extra $100 million a year
Now instead of wasting more money lets give the $100 million a year to farmers and
1 Help them stay on the land
2 Develop new crops
The way the next boom in Australia will be Food. We could provide food to many countries across Asia and beyond. Lets get smart and support our next growth industry and make sure it is owned by Australians.
As an investor I believe that for our economy to remain strong we have to be far smarter than we are now
Nigel Kibel
http://www.propertyknowhow.com.au
Nigel Kibel | Property Know How
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As a recently redundant tradesman at Holden I absolutely don't agree with you in that the support money is a waste.
I do agree that our farmers need more support, absolutely. The two are very different sectors in our country's economy and need to be treated as such.
Manufacturing is extremely important as it is one of the four main contributors to the economy.
As per the Australian National Accounts: National Income, Expenditure and Product, March Quarter, 2012, Sourced from the ABS, The four main sectors that contribute to Australia's economy of around $900 BILLION is 83% Services, Manufacturing 8%, Mining 7% and Agriculture 2%.
Manufacturing has dropped from 15% in 1990 and as we all know, mining is estimated to grow to 12% of GDP.
This shows that whether it is a growing or shrinking sector, right now, it is incredibly important to our economy to continue growing it or at least trying to support it.
Why farmers do not get more support I have no idea. They should. Definitely.
All I know from having been an employee at Holden for 14 years, never has anything good been reported to the rest of Australia, lots of half truths and borderline lies. The simple fact is that any investment monies that are paid to Holden by our governments and from GM head office in the US, the return on investment is massive. Never has anyone lost on that investment.
I sincerely hope our government gets much smarter also. Lets look after our own backyard first to make sure we are a sustainable nation, not a nation of importers to survive.
Mikal Howard
With all the possibility of smart ideas you are staring into the face of fantasy when you talk like this.
First of all .. the only boom in food is in the premium organics range .. which despite appearance is actually a very tiny section of the market.
Our major food and produce markets are being trounced by better low value imports from foreign countries that continue to subsidise those sectors.
Our produce goes out into the world market and remains uncompetitive. Thats why we are shipping to places that pay a higher dollar … such as the middle east.
A lower dollar would make our produce a lot more attractive.
Holden staying in this country is a boon to our local economy in that a working car industry in some format is worth preserving as not only do you get the direct benefits of employment, but also the feeder benefits of every institution that would have some reliance or dependance on a working manufacturing line in this country.
So yes in dollar terms 100 million may seem like a huge amount .. but i'm guaranteed that the fringe benefits from having kept an industry in Australia (ask Geelong what life is like without Ford Motors) will make that investment worthwhile.
The whole car industry is in shambles at the moment, not just the American car manufacturers. Saab Auto is history (GMH would sell the company but not the tech), Opel Australia just pulled up stumps, Daewoo died a couple of years ago, and Mitsubishi pulled a winner out of a hat with the 380 to save its ass from bankruptcy.
As an investor in this country .. I would tend to agree with your smarter Australia totally. I have been approached by people consistantly on certain ideas they want to get started and I consistantly shoot them down when it comes to the idea of manufacturing in Australia.
I tell them that at the moment thanks to Government Policy largely, its too expensive to do business in Australia. And I point out to them where to go.
To drag back the money that is being piled into real estate .. the government needs to offer better strategies to make working Industry effective in this country.
Because .. despite me being an investor in Real Estate .. i can tell you .. long term .. unless there is a supporting income base from other industries to feed the rental demand .. my real estate is not worth a cent if there is nobody who will want to sit in it.
It's too complex a situation to suggest that money should be taken from one and given to the other. Both industries receive government assistance and tax breaks, and both have to compete with foreign competitors who receive even more government assistance and tax advantages.
Why should either get any grants?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Let's kill 2 birds with one stone: give each farmer a new Holden ute
Bolsters the (new) car industry, assists farmers by replacing some older equipment.
Ruins used car sales prices.
I think we are heading into a mess!!!
When the government needs to provide handouts to any business, its sends out mixed messages.
1) If a business like Holden or ford (or any other business) cant break even or even make a profit then why are they in Business any way?. Spend the money in other industries that are growing….
Australia has allot of issues in terms of manufacturing and business in general.
1) Population is to small for to much competition – So many other industries are being effected by this population being small
2) Cost of doing business in Australia. Pay roll Tax, OH&S, Super, Holidays, wages, income Tax and many other tax's make it to costly to do business.
3) Rent, Electricity, rates, out goings etc to expensive again….
Also the biggest issue Australia faces is this, Overs ease countries are building better quaility products at a fraction of the rate.
Jpcashflow | JP Financial Group
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Email Me | Phone MeYour first port of call in finance :)
What I am suggesting is that b providing farmers with grants it allows us to develop new crops that can be sold to the world
There is a real risk that within 20 years we could become a net importer of food
We could become the food bowl of asia. The difference is it does not matter how much money we pore into the car industry it will go.
Nigel Kibel | Property Know How
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Nigel Kibel wrote:What I am suggesting is that b providing farmers with grants it allows us to develop new crops that can be sold to the worldThe world has been doing this for 50 years and AU already invests heavily in ag sciences through the CSRIO.
Quote:There is a real risk that within 20 years we could become a net importer of foodInevitable if our current rate of population growth is allowed to continue (one of the highest) We currently export around 50% of production, however, food imports will exceed food exports within 15 years based on current predictions.
Quote:We could become the food bowl of asia.Global warming is set to create massive problems in food production over the coming decades. The govt already has a strategy in place that addresses many of these concerns.
http://www.daff.gov.au/natural-resources/soils/working-group-on-water-soil-and-food/final-report
Quote:The difference is it does not matter how much money we pore into the car industry it will go.True.
Support is about helping an industry transition. When that turns into an ongoing subsidy it's time to pull the pin and redeploy your resources more efficiently. We live in a globalised economy and that throws up pro's and con's. We win in some areas and lose in others. Rigging the game has never worked long term.
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