The Good Oil *By Rod Brown
The Australian Greens say the closure of Tasmania’s Blundstone boots factory highlights the need to scrap efforts to sign a free trade agreement with China. Greens Senator for Tasmania, Christine Milne, says the loss of 300 jobs in Hobart is a case of the company being let down by the inherent contradiction in Federal Government policy – which lowers tariffs and gives industry restructuring assistance knowing that such assistance will never be enough to compete with low wage economies. She adds that Blundstone has been forced to leave because it can’t compete with low wages.
This is an incredibly difficult issue, but one thing is for sure tariff assistance is not the answer. The use of tariffs on imported goods to improve the competitive position of local firms is yesterday’s approach.
Apart from running into huge problems with WTO rules, it is transient support that can be quickly eroded by exchange rate changes. The emphasis has shifted to support for local capacity enhancement, infrastructure support, international supply chain development and R&D grants – and the EC and Japan show the way. This is cold comfort for Blundstone. But one can only hope that Blundstone can be a viable operation by blending overseas manufacturing operations with local design and management functions.
Some of you might remember that Pacific Brands began the offshore production push 20 years ago as a matter of survival, and a host of other Australian manufacturers have taken the same route.
Parkes – a lesson for other towns
Did you see the riveting TV program on the Elvis Festival at Parkes NSW, where a couple of local Councillors took tentative steps five or so years ago to establish an annual Elvis Presley Festival? In the face of much cynicism, they have succeeded – last month they drew in excess of 6,000 patrons to see the Elvis Street Parade, the Elvis in the Park festivities, the Elvis Gospel Church Service and more. It would not have happened without the efforts of a dogged few champions. They have obviously tapped a groundswell of curiosity and sympathy from folk living on the seaboard who generally have no reason to travel inland in the baking summer. It also raises the question of what’s holding other towns back from doing something off the wall? The Wangaratta Jazz Festival, the Thredbo Jazz Festival, the Goulburn Blues Music Festival have each had varied success. The Noosa Film Festival came and went.
I’ve often wondered why Lakes Entrance (Victoria) doesn’t develop a seafood festival as part of an image building exercise. And why can’t some of the gourmet food trails be upgraded, instead of the embarrassing efforts on offer? And how can we involve, on a bigger scale, the corporations and banks that depend on rural economies for their revenues? Of course, you need the committed champions to ensure that these collaborative efforts don’t die a natural death. Perhaps we need to get the involvement of Peter Kenyon, the long standing community builder who travels widely. His Bank of Ideas organisation (based in WA) looks the goods. Go to www.bankofideas.com.au
We’ll miss Amanda
The Canberra political community is in shock at Senator Vanstone’s recent dismissal from the Howard Cabinet. As Immigration Minister she was faced with making unpalatable decisions in the wake of the Rau and Solon sagas, plus she had to wear the Baxter detention centre business and the Cronulla riots. She is an impressive parliamentary performer, has the respect of both sides of parliamentary for her honesty and straight talking, and is a good person. We wish her the best in her future career. As she allegedly said to a male Senator who commented on the size of her derriere, “It’s better to be big in the backside than to have bulldust for brains.”
Tribalism gone mad – Williamson’s take on God
Religious differences and military conflict can significantly undermine international trade and investment flows – and World Bank data confirms this. It was thus illuminating to ponder the recent thoughts of David Williamson, our leading playwright. He argues, “We are all part of one big tribe on a very fragile planet, and that people who parrot the prejudices of their particular creed will start to realise how toxic their belief system is to any hope that the innate decency of humanity will ultimately triumph.”
Type ‘david williamson god’ into google to read the article.
Water Fund – now ya talkin’
Prime Minister Howard’s decade long $10 billion plan to take control of Australia’s water resources is a master stroke. The plan for a massive increase in investment in irrigation infrastructure, water saving measures for farmers and the exploration of water development in Australia’s north offers hope for addressing the rural-city divide.
As the PM stated, “It is a large but prudent investment, especially given the importance to Australia of the Murray-Darling Basin and the scale of the water crisis that confronts it.”
There is no doubt the current system of managing water in the Murray-Darling has reached its use by date. Interestingly the PM added that, “The tyranny of incrementalism and lowest common denominator must end.”
I guess he was referring to the fact that when you shell out funding on a project by project basis you lose an appreciation of the big picture.
The plan opens up huge opportunities for Local Government to work with the States and regional water authorities. The new governance arrangements will take form over time, and there will be a raft of vacancies within the APS for people with skills in water program administration. Readers take note.
While on the subject, the prospect of a water pipeline from the Kimberleys to the eastern States has been dismissed in some quarters. But Dick Pratt and various institutional investors continue to mull over the possibilities. The fascinating question is how private sector funding might be married with Federal funding in this field. Your head hurts just thinking about it.
*Articles in The Good Oil column are provided by members of the Cockatoo network – an international group of individuals and organisations that collaborate on industry and regional issues. Contact apd@orac.net.au for membership details.
