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Give the Chinese an offer they cant refuse !, page-39

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moondoong

47,214 Posts.

05/09/20

22:12

Post #: 47117426
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Originally posted by moorookamick ↑

What I have proposed are SEZs which are set apart from the rest of Australia solely to add value to our exports and diversify trade away from China.
These SEZ can be:
-Tax free
-employ the cheapest globally available guest labour
- global safety and environmental standards
-no imported red tape from outside the SEZ
-product exclusively for export.

As such SEZs do not impact on the local economy with the exception of adding value to the exported product vis-a-vis the value of the component exported raw materials
In other words , the economics of production would be identical to that in say Indonesia or the Philippines where Indonesian or Philippine labour
would be used bt with the added advantage that the iron ore, met coal & lime is locally sources.

To imagine the industry inside a SEZ just imagine the SEZ located overseas in say the Philippines and imagine that the kit & caboodle is magically
transferred to our SEZ in say Gladstone which is sealed off from the rest of Aus with foreign workers accommodation within the SEZ etc.

This is how Singapore deals with its Middle Class Trap ( The Dutch Disease) . It imports guest workers from SE Asia who work for considerable
lower wages that the "middle class" locals. keep in mind that Singapore is a City/State and not a conventional country .

In a SEZ. this lower labour costs does not impact negatively on our own working class wages/unemployment rate, because by definition the SEZ is completely isolated from the rest of the country as if it were a foreign country. In fact all goods & people entering or leaving the SEZ would have to go through Aussie customs.

The rationale here is that if countries like Japan, Korea, Taiwan & China can import our iron ore, met coals & lime to make steel & our thermal coal & LNG to generate electricity, then we can replicate their business model within the SEZ with the extra benefit that we can source our steelmaking materials locally & we can import labour equal or lower in cost than these 4 raw materials customers.

In the past Governments and Multinationals have sold us the benefits of foreign investment (code foreign ownership) on the basis of jobs, jobs, jobs because Aussies have had little or no equity in the projects and once operational, minimise the "jobs" via robotisation & automation. (IE driverless
mining trucks etc)

Mega Steel smelters are capital intensive with much less labour content than say 20 years ago (ie Bluescope's model in Wooloongong).
If such an operation only doubled value of the raw materials then it would be a considerable success + the bonus of diversifying trade away from China. As anti-China sentiment grows in the West, there will be a growing demand for non-Chinese products. Germany has already taken action on
minimising its dependance on Chinese content in its supply chains.

So in summary, this is the 21stC where 20thC arguements of "to expensive Aussie labour is a thing of the past if we use our brains rather than our ideological bias. Just look at how Saudi Arabia deals with its "Dutch Disease". It imports guest labour from Pakistan , Indonesia & Malaysia for its Petro Chemical & construction industries. The reason that it can afford to do this is because it equitably shares the profits of its petroleum-chemical
industries with its citizens in the form of no income tax and other social benefits. By the way, we import most of our Diesel from Saudi Arabia because saudi Arabia can produce it cheaper than we can (using their own raw product & cheap imported labour) the very thing which i am suggesting for our SEZs.

This is why the benefits of SEZs should be equitably shared with all Aussies in the form of a National Welath Fund similar to that of Norway
rather than lining the pockets of Multinationals.iin teir tax havens overseas.

Expand

You seem genuine I'm going to try and be as polite as I can but mate you're seriously misguided.
A SEZ as you want does NOTHING for employment of our own people. It would generate no profits for Australians.
The environmental impact would be huge.
You have to understand that these Asian countries you want us to compete against are causing massive damage to their own environment - we don't want that to occur here for any amount of money.
Deaths and horrible injury occurs daily in these Chinese factories. We don't, and can't, tolerate anything even remotely similar here in this country.
If you think that Saudi Arabia shares the profits of it's petroleum industry equitably as you claim, you are seriously mistaken.
Saudi society is one of the most unequal and unfair in the whole world.

To think that an SEZ in Australia full of imported coolies could produce anything remotely close to Norway's oil derived wealth fund is absolutely laughable and fantastic. It's crack pipe stuff.

I don't know what else to say.
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