Abbott’s Big Budget Blunders after seven months

Seven months into Abbott’s first term and how many big blunders has he made?

  • Raised Australia’s national debt ceiling to $500 billion, and adding $50 billion to Gillard Labor’s departure debt of $257 billion by February 2014.   The annual cost of servicing this Public Debt Interest alone is more than $300 million a year.  The midyear economic review released last year forecast debt to rise from $310 billion in 2013/14 to $460 billion by 2016/17.   Australia’s Annual Public Debt Interest is set to soar to half a billion a year just to pay the interest component.
  • Let Australian Automotive Industry go to the wall – allowing multinationals Holden, Ford and Toyota to have reaped Aussie taxpayer subsidised billions gifted by Labor to stay then to shut up shop anyway. Now we hear 200,000 Australians in automotive are set to line up at the unemployment office.
  • Stuck to his unaffordable Paid Parental Leave Scheme to cost $5.5 billion a year, to give a baby’s primary carer six months leave on the mother’s full pay up to an annual salary of $150,000.  Rich getting hand outs, while Joe is set to cut and delay the aged pension?  And most of those having babies are migrants anyway.   Migrants are not entitled to arrive, breed and be gifted $150,000 by Australians. Abbott’s own Commission of Audit has concluded PPL is unaffordable and unfair.
  • Stuck with Labor’s unaffordable NBN, while rejecting Labor’s revised $90 billion estimate, still committing Australian taxpayers to $29 billion, while many Australians don’t even have any Internet, and don’t want to watch videos on superfast broadband anyway.
  • Stuck with Labor’s unaffordable National Disability Insurance Scheme, facing an NDIS budget blow-out of $400 million, and demanding 13,000 more workers to provide care and support for the scheme to work.  The extravagance is expected to cost $40,000 per person, and that is only planning for half the targeted 4340 completed plans.  The NDIS is expected to be fully up and running by 2019 at an estimated cost of $22 billion a year, while Hockey is set to slash Medicare.  Ok if your disabled, but tough luck if you get sick.
  • Gifted $8.8 billion to the Reserve Bank and so worsening the government’s budget deficit toward $40 billion.  How hypocritical of the Liberals after canning Labor on budget deficits ad nauseam for six years. Former Labor Treasurer Wayne Swan had gouged Australian wealth out of the Reserve Bank to fund Labor’s reckless spending, so reducing RBA contingency reserves to just 3.8%.  The RBA Governor was right to call for dividend payments to the government be suspended until reserves have been rebuilt.  Labor and Liberals need to live within their means like the rest of us are expected to.  No profit, no dividend.
  • Signed blank cheque to do Malaysia’s and Boeing’s dirty work searching for Malaysian Airlines lost Boeing 777 flight MH370.   So far the search has cost $53 million (excluding the high-tech US involvement), the most expensive search in aviation history and it is only week six.  Abbott has thrown ships, satellites, planes and submarines at the effort, with no agreement, scope, budget or time limit.  According to Defence, HMAS Success, the Australian navy replenishment vessel deployed two weeks ago, costs about $550,000 a day to operate.  Abbott, on offering search leadership needs to have negotiated terms with an exit clause and Malaysia and Boeing should be sent the bill.
  • Now we’re set to hear about the Badgerys Creek airport.  Abbott’s biggest white elephant that will shape his legacy.  How many billions?  Who so “desperately” needs it?  Where’s the cost-benefit?   Where is the budget, the plans, the impact statements?  Whose lives will be destroyed?  Not Abbott’s or Hockeys’ up there on the north shore.

Hockey's Heavy Lifting

And for Abbott’s Heavy Spending, who will be doing Hockey’s Heavy Lifting?

Posted in Liberal Party Treachery | Comments Off

Australian high wages cost free trade multinationals profit potential

The Mad Monk’s Free Trade orthodoxy!

Tony AbbottThe Gordon Gekko short-term incarnate

If only Australian workers would emulate the Turd World on a level playing field – relinquish 200 years of hard-fought Aussie workplace rights, ignore ANCAP safety standards, ignore environmental regulations, surrender penalty rates, work as a disposable casual, work when crook and work for sad Turd World pittance.

Sell the farm and find financial Mecca!

Forefathers from First World nations like Australia would be damn well rioting in the streets!  Passive Australians Wake Up!

It seems under Abbott Pure Capitalism, only under enslavement of ordinary workers that greedy multinationals can reap their massive profits, and so stimulating Abbott’s Australia, and delivering on his divine free-for-all sermon:

“Free Trade promises growth by selling wealth”

The following news piece appeared exclusively in The Australian newspaper (Nov 1, 2013, p.2) as if written by mining philanthropist Gina (undernourished) Rinehart, and presuming Gina is of Kazoku peerage.

‘Australian Wages cost us Asian projects’

“Japanese investors have taken their concerns about wages, productivity and union power in Australia to the Abbott government amid a push for reduced costs and industrial relations reform.

Government officials and one MP have also spoken out about the rising costs of resource projects in Australia, warning that cost pressures and wages had forced the abandonment of several Japanese-backed project proposals.

Industry Minister Ian Macfarlane, speaking to The Australian in Tokyo this week, confirmed that Japanese investors had flagged wage and cost issues with him, as well as concerns over frequent regulatory changes.

He conceded Australia was losing out on Japanese-backed projects because of rising costs, and said it had to boost productivity.

“There’s no doubt about it, companies (are) investing in the southern part of Africa, Mozambique obviously, but also South America and parts of Asia,” Mr Macfarlane said.

“There’s no doubt there’s competition in resources . . . we have got to get every investment we can get. If there’s competition between three copper mines, then we have to be the country where the copper mine opens.”

Japanese government officials joined in the criticism of rising cost levels, with the peak government resources body revealing this week that high costs in Australia had scuttled several proposed Japanese-backed projects.

MacFarlane Free Trade“For Australia, the costs concerning these resources projects have risen within the past two or three years,” the Japan Oil, Gas and Metals National Corporation’s Nobuyasu Nishikawa told The Australian. “I think the main contributor is the shortage not just of workers, but of semi-skilled or skilled workers.”

He gave the example of mining-truck drivers earning an “unreasonable” salary of more than $100,000 a year. “Of course this sudden rise of costs is a very negative factor for investors,” he said. “Companies that are involved in mine operations must be facing very difficult problems.”

Taku Otsuka, a Japanese government backbencher who headed a five-member delegation of Japanese MPs visiting Australia earlier this year, said companies were beginning to see wages as a barrier to investment.

“Australian labour costs are particularly high compared not just to other resources countries but to other developed countries as well,” he said.

Australian Trade QuarantineThailand much cheaper than you Aussies!

The head of Japanese trading house Mitsui, which has invested $12 billion in Australia over the past 10 years, recently met with Tony Abbott to discuss its massive Australian operation and plans to expand wheat exports.

But Australian managing director Yasushi Takahashi rejected suggestions that chief executive Masami IIjima had raised labour issues or costs during the meeting, saying he made no requests or criticisms at all.

However, other Japanese industrial giants are believed to have expressed concerns to the Abbott government over union power, wages and construction costs, and to want to see further industrial relations reform. Mitsubishi, Asahi and Toyota are among those that have had industrial problems at their Australian operations.

Think what healthy profits Toyota could have achieved on 457 Visas!  Cheaper to manufacture in two-bit Thailand.

Aussies, compete with this and don’t be sold on the ‘magic of innovation’ alone:

Dubai WorkersIn their home country – Bangladesh or the Philippines or India – these workers are told they can earn a fortune in Dubai if they pay a large upfront fee. When they arrive, their passports are taken from them, and they are told their wages are a tenth of the rate they were promised.

They end up working in extremely dangerous conditions for years, just to pay back their initial debt. They are ringed-off in filthy tent-cities outside Dubai, where they sleep in weeping heat, next to open sewage. They have no way to go home. And if they try to strike for better conditions, they are beaten by the police.’

In Tony Abbott’s ideal Free Trade market economy everything is dumbed down for the multinational, including humanity.

The Gospel of Greed:  multinationals never sleep.

Posted in Decent First World Wages, Free Trade Dumping kills Local Business | Comments Off