The Pen is mightier than the sword, but the Pen must sometimes move the sword against corruption if the corrupt are not moved by the pen.. An idea without an implementer is useless. "The Rulers do not carry the sword in vain"Rom 13:4

Thursday, December 12, 2013

The End of the Road for Holden.

Before you accept the well spun mantra that "we can't have tarrif's" on imported goods, and how tarrifs will only protect inefficient factories and lazy workers...... have a look at the situation in Brazil.

Notice closely how this graph reveals some uncomfortable truths for the "no tarrifs" crowd.

First image is a graph of the production of cars in Brazil by time.

See how in 1990 when imports were not taxed....the local industry receded seriously. But just look at what happened in subsequent years?  See the next image to find why.....

Brazil protects is vehicle manufacturing industry with tarrifs.

The industry grew and grew and grew in Brazil when tarrif's were imposed around 2000.
Tarrifs are resisted by Conservative Australian governments because, I suspect it benefits their National Party members who benefit greatly from untaxed agricultural exports to other countries which make cars.  It seems the coalition Government and  Labor included have decided to sacrifice our car manufacturing industry for the benefit of other industry sectors that they believe will bring in more loot to the leaking government coffers.

The Labor government (and previous Coalition Governments) seem to believe that pouring public money into failing businesses is somehow doing to have some redeeming value. It won't. All it will do is give stubborn and nefarious Unions the cozy feeling they can continue to demand ever more because.. "we" the taxpayer, foot the bill.  IF the government wants to save the vehicle industry, rather than tiptoe through the industrial minefield and play nincompoop 'pink batts'  economics, they must to a number of things.

i) Dismantle the Union influence on the Auto Workers.
ii) Re instate some Tarrifs on imported vehicles.
iii) Liase with the Manufacturers to come up with an increasingly efficient manufacturing plant.
iv) The last point has only one meaning. "Less" workers and "More" automation.

Conclusion. It does not matter how you cut the cake, the slices are destined to crumble unless it is a balanced and comprehensive approach. Workers must be re-educated along lines that some have to go and be replaced by machines, and there can be no further Union involvement in the industry. If workers are fed up or disgruntled, the only logical solution is to walk out.

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