Advance Australia Fair

Generali

Kennyboy66 wrote: »

The last one bites the dust as Toyota announce closure of car manufacturing from 2017.

The problem with the dutch disease is that when currency strength unwinds, there is no manufacturing left to benefit.

Iron ore volumes down, iron ore prices down and forecast to fall further in the next 2 years.

Still, house prices booming, up by 10% in 2013.

What could possibly go wrong ?

TBH, I'm not sure that this is an example of the Dutch Disease. According to our Chief Economist at work, the AUD is now only very slightly above 'Purchasing Power Parity', a reasonable long-term measure of fair value.

The problem is more that wages are very high and terms are pretty onerous too, especially given that Australia is a high wage, high productivity economy in a low wage, low productivity region. Metal bashing is never going to be a winner for Australia.

I think that the big future winner for Australia is going to be food exports, especially high quality meat, and also the continued expansion of the education sector. Education is already Australia's second biggest export after primary products.

purch

Kennyboy66 wrote: »

The problem with the dutch disease is that when currency strength unwinds, there is no manufacturing left to benefit.

And all your Elm trees have gone :eek:

michaels

Generali wrote: »

TBH, I'm not sure that this is an example of the Dutch Disease. According to our Chief Economist at work, the AUD is now only very slightly above 'Purchasing Power Parity', a reasonable long-term measure of fair value.

The problem is more that wages are very high and terms are pretty onerous too, especially given that Australia is a high wage, high productivity economy in a low wage, low productivity region. Metal bashing is never going to be a winner for Australia.

I think that the big future winner for Australia is going to be food exports, especially high quality meat, and also the continued expansion of the education sector. Education is already Australia's second biggest export after primary products.

Ahh but no doubt you have the same luddites as here with their manufacturing tinted spectacles who would rather see all the language teachers redeployed to tractor factories because only manufacturing is actually 'making something'.....

Kennyboy66

michaels wrote: »

Ahh but no doubt you have the same luddites as here with their manufacturing tinted spectacles who would rather see all the language teachers redeployed to tractor factories because only manufacturing is actually 'making something'.....

I'm hardly a manufacturing fetishist, but this is devastating particularly for Victoria & SA.

Until 2008 automotive exports exceeded the value of beef exports, or wine exports.

High paid, high value added jobs being replaced by fruit picking. Great

grizzly1911

michaels wrote: »

Ahh but no doubt you have the same luddites as here with their manufacturing tinted spectacles who would rather see all the language teachers redeployed to tractor factories because only manufacturing is actually 'making something'.....

Sadly we have many low skilled people rather than language teachers. People that could become processors and operatives with suitable training.

Not everyone can be a rocket scientist.

michaels

grizzly1911 wrote: »

Sadly we have many low skilled people rather than language teachers. People that could become processors and operatives with suitable training.

Not everyone can be a rocket scientist.

That is fine, as long as they are happy to accept the same level of wages as those in other countries capable of the same level and value of output...didn't think so.

Rinoa

My most loved car was a Toyota Camry. I'd buy another today but they don't make them for Europe anymore. Everywhere else in the world yes - Europe no.

Had this idea for a couple of years of importing a Camry from Oz. Even checked the exchange rate, shipping, type approval etc and it worked out about £27k for a well appointed model. Very tempting, but I always chickened out with the hassle involved, UK insurance, spare parts etc.

Guess I'll never get one now.

michaels

Rinoa wrote: »

My most loved car was a Toyota Camry. I'd buy another today but they don't make them for Europe anymore. Everywhere else in the world yes - Europe no.

Had this idea for a couple of years of importing a Camry from Oz. Even checked the exchange rate, shipping, type approval etc and it worked out about £27k for a well appointed model. Very tempting, but I always chickened out with the hassle involved, UK insurance, spare parts etc.

Guess I'll never get one now.

That's cos the Brits won't buy large saloons unless they have a German badge on the front regardless of quality or value as they are purchased to be seen in not for any other qualities.

grizzly1911

michaels wrote: »

That is fine, as long as they are happy to accept the same level of wages as those in other countries capable of the same level and value of output...didn't think so.

It is irrelevant what they want. Not everyone can be language teachers.

What happens when we don't need language teachers any more?

Generali

Kennyboy66 wrote: »

I'm hardly a manufacturing fetishist, but this is devastating particularly for Victoria & SA.

Until 2008 automotive exports exceeded the value of beef exports, or wine exports.

High paid, high value added jobs being replaced by fruit picking. Great

Subsidized by hundreds of millions of dollars of taxpayers' money.

According to a piece in The Australian, each Holden car produced cost taxpayers $2, 500 and each car worker $50,000! There is little point in propping up companies that will never make a profit.