SA Whyalla: the new Moranbah ?

I understand the sentiment but the issue with that is where do they stop...bailing arrium out sets a precedence. They might just let the market forces be as they may.

 

i lived in Whyalla for a few years as a kid...population was about 30k then, think its about 21k now.
I read that it was originally built for a population of 50k, however it never got there.

 

True, probably closer to Elizabeth Holden closures and the spruiky mega thread.

 

And the vultures circle:
Arrium asset values damaged by administration, says SA Treasurer

 

One of the pollies - scott morrison? Came out and said they will not promote Australian steel im government jobs as it would be fleecing taxpayers
What about the fleecing of taxpayers that may occur when 1500 whyalla families start lining up for centrelink.

Do the maths on that, it might make you rethink your stance on market forces.

If we let international market forces dictate everything we will be left with nothing

 

Agree. The government has been screwed over by the FTA. They have sacrificed local markets (steel in this instance) for nothing in return.
Business must front-foot China's new e-commerce laws
This is just the commodities part of the FTA. Wait till labour market is loosened.

 

http://www.afr.com/business/manufac...t-thornton-set-to-be-replaced-20160411-go4081

Administrators replaced.

 

Yup just ignore the fact that once the money goes overseas its gone. Spend a little extra here and they get a fair old percentage of it straight back via taxes, payroll etc.

 

Why does that have to be the case? why take such a negativ approaxh and assume we arenf capable of survivinf without the government being protectionists?

International market forces dictate the prices of dairy products, wheat etc and we're pretty successful at that although could be better like the kiwis.

we need to become smarter and more innovative as a country overall instead of crying in the corner for the government to bail us out and save us from the big bad world. that would lead to us being even more inefficient, lazy and dumb because we wouldn't have to compete.

in the EU a lot of the subsidies are being cut back but farmers and producers who got so used to not having to be efficient because of the subsidies are now finding they're too crap to compete.

the govt both state and federal, businesses, entrepreneurs, workers etc as a whole could be doing much more to advance australia instead of waiting for the inevitable as some do or saying it's all too hard.

 

It's a tough balance. I know that personally I always try to support local companies when I can. I also would like to see the govt do so but there has to be a certain point where it just can't be justified.

eg, if a project is going to cost $500m less with an imported component vs doing it all locally that's $500m that the government could put to use elsewhere. it's a tough a balancing act

 

The govt stood by and let the jobs go for the simple reason that cost of supporting those jobs out weigh the benefits.

Supporting families on centrelink cost millions, supporting a steel industry will cost billions. Look no further than all the subsidy we gave to the car manufacturers, they kept going only because of government support. Once the money stop, they shut down.

Either you support them forever or bite the bullet and rip off the bandage.

And those imported steel, they are most likely made from Australian iron ore.

 

yeah i would agree- cost of supporting a company thats fighting a losing battle is not worth it to them. The entire industry is in decline. Not just the company...and they are not too big to fail- BHP etc would likely be but not them...at least not according to the govt.

 

I once went to a "seminar" with this mob - http://wealthbuildaustralia.com.au/ and they were heavily pushing their Whyalla stock.

 

I will tell you why, because it is like playing poker against known cheats, even our so called buddies do this.

Politicians are not selling off what they will earn are they ?

 

It doesn't really work though, the company just siphons off the funds the government gives them. And still aren't competitive.
Like the foreign owned car companies.
Just delaying the inevitable.

 

1. So a state sponsored, loss making dumping with rigged foreign exchange is the answer Charts that show why China really is to blame for the steel crisis.
2. The companies can be labelled not competitive only when the competition is fair. Even if we run with the argument that Australian steel making is not up to scratch, how is every country (Germany, Italy, UK, France, Poland, Belgium, Luxemburg, US) trading with China having the same problem. Thousands protest Chinese steel dumping, urge EU to act
3. The loss making Chinese steel mills are propped up by the state banks to stave off social unrest in China. The dumping of cheap steel is effectively out sourcing the social cost to developed economies.Why are the Chinese jobs more important than 3.5 million jobs at stake in EU ? The answer to over capacity in China is...re opening the mills. Steel plants reopen in China as mills in Australia, Britain face axe.
4. The countries without excessive reliance on Chinese exports are fighting back:
   • U.S. Imposes 266% Duty on Some Chinese Steel Imports
   • Free trade the first casualty in UK steel crisis
   • EU threatens more action against cheap Chinese steel - Juncker
5. The government is not just about the economy and budgets. Beyond a certain point social and strategic interests take precedence over the economic interests.

 

Our government/s just keep doing the same old dance.

In some cases, I would be happy if they tried something new, I never agreed with selling off assets the people owned back to largely the people, they could try something new, like buying out, but having a private board/company run the show, kind of like our national carrier.

We need to do more than be a nation of services, if for no other reason that national security.

 

Not to me.
Sometimes there is no answer.

 

Morgan Stanley has initiated legal action to (a) prevent Arrium from transferring their US assets (b) get ahead in the queue of the lenders.
Legal bid to thwart Morgan Stanley's Arrium intervention

 

The answer is growing a backbone. Looks like our pollies have just sprung one. Better late than never:
Arrium to be boosted by duties on 'unfair' Chinese steel