Gillard Clueless?

It is a sad fact of life that we have a government so illogical in thought and deed that they willfully destroy the very fabric of business life in this country with nothing more than arrogance and incompetence as their tools. Take the Carbon Tax for example. There are many sectors of business, both large and especially small that will be destroyed by this nonsense.

Lets then take two examples :

Lets compare the share price of two iconic Australian companies both before and after the carbon tax announcement.

Blue Scope Steel

Before /After Loss

Announcement Announcement

Share Price 16/12/10 09/11/11 in Value

$2.31 $0.73 – 68.4%

One Steel

Before /After Loss

Announcement Announcement

Share Price 18/02/11 09/11/11 in Value

$3.01 $1.00 – 67.0%

Source :Commsec 

The loss in capital value of these two companies alone is of huge concern not only for the employees of these companies but also the hundreds of thousands of people in small business in these cities and towns, not to mention millions of shareholders including our superannuation and pension funds.

Now folks, firstly the sector is being paid this so as to transit to a non polluting solution.  Currently the world does not have an alternative to turn to.  So the conclusion will be that this sector will be destroyed.

But also, what about those business in the towns and cities that depend on such industries. The thousands of small businesses who collectively employ more that these so called polluting enterprises – there is simply no compensation for them and they to will be destroyed.with thousands being made unemployed or underemployed.

Take the Qantas saga

The unions must understand that Australia is to compete in the global economy.  Now that’s global not merely local.  Many of the counterpart airlines around the globe are facing a dire outcome due to oil prices and fierce competition in this sector.  Our airlines are compounded by the high Australian dollar and week global markets.

We as consumers love the low cost travel options as a result.  But the result is that the unions now need to realize that their once protected story is now gone.

The head of Qantas is quite right in his stance.  Now I know this might upset some of you but just think about it for a moment or three.

In order to be a viable airline in a cut throat industry, Qantas needs to compete and if that means outsourcing to reduce costs, so be it.  It is no different to any other business in the country.

Since Labour came into office and the old guards of the union movement gained influence, the Qantas story has become a disaster.

QANTAS

Oct 2007 Nov 2011 Loss Value

Share price $6.01 $1.62 – 73.0%

 

Source Commsec

If you were a shareholder, you have received no dividend for a long while.  If you are an employee, your job may be lossed as the company tries desperately to rescue the brand, an iconic and world brand from being destroyed completely.

Cheap labour and technology have combined forces over the last twenty years to deliver efficencies in our lives both personal and business.  The union movement is hell bent on taking this country back in time and we have uninformed desiccated coconuts like Doug Cameron and Bill Shorten making businesses such as Qantas and for that matter all businesses and their owners think twice and three times on prospects in Australia.

Government are playing with the lives of business but also our financial lives as our retirement funds will suffer, costs will rise and Australia will be some back water that people will visit but not want to live in.

Your job is under threat as your employer faces ever increasing costs and tries to remain viable.

Government must understand that business, large but especially small employees millions of us.   If they go, we go and so will our family’s livelihoods.

From a business point of view Australia will be simply to expensive.  That’s a concern.  A major concern.

Consider also that Australia has low birth rates and an ever increasing number of baby boomers retiring.

So it follows that as we retire, we become more conservative, we save more and spend less.  As we do this, government receives less in revenue from a taxation viewpoint, be this as a result of the GST, income tax and so on.

With falling property and share values as the world has a hiccup, in a big way, less revenue is also there from a Stamp duty or Capital Gains Tax viewpoint.

With more retirees, there is the issue of a rising level of pension payments we will see in Australia with more borrowings to fund this item if not higher taxes.  As if we weren’t taxed enough.!

Add to this the lack of infrastructure in Australia and while we crow about our low debt, the fact is our hospitals roads, schools are screaming for funds.

So to have a government that wastes taxpayers funds, introduces a regressive tax based around a lie and then seeks to destroy industry and jobs is an outrage.

Their reply though is simply more incompetence and when caught on that, reply with arrogance.

One answer …  throw them, Labor and the Greens OUT!.

This is now more urgent than ever.

 

The numbers guy