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02/07/20
08:29
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Originally posted by moorookamick:
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I hear what you are saying on a micro management level but my suggestion is simply to emulate Japan & Korea with accommative Government policy that assures Australian Owned & operated manufacturing ; not fractured multinational processes like we have now . For example Alcoa has been smelting Alumina oxide in Gladstone for 35 years (plant now obsolete) on a small scale producing aluminium ingots. Rather than alloying/moulding the molten aluminium into valueable castings , the company has persisted in quenching the molten metal into silly ingots, exporting it to Japan & Korea where it is again smelted and then moulded into auto castings with energy generated from Aussie coal & gas. The old chestnut argument that Aussie factory processing labour is too high is obsolete because both Japan & Korea have caught up with us and in some cases , their input lobour costs are higher than Aus particuluarly since the ass fell out of our Peso. The key to internationally competitive manufacturing is: -cheap base materials -cheap electricity/energy -economy of scale (mega factories) -hi-tech processes & automation -insular/Tax Free manufacturing zone to prevent domestic add on costs -global marketing capabilities. I have specifically chosen the casting & machining of Automotive Components because: (a) Australia has Free Trade Agreements with Japan, Korea, Thailand ,China & the USA*; all mega Auto manufacturers (b) Aluminium Auto components are high value/hi-tech and , IMO, would have a good multiple of added value (c) That Aus is a stable economy and can provide Japan, Korea , Thailand & the US with Non-Chinese Auto components Aluminium alloy casting & machining can be extended to cover a host of products such as small engines, domestic appliances, tools etc over time. It seems absurd to see the shipping of DSO bauxite from Queensland, the processing of it overseas with imported Aussie energy when all we have to do is to pull a finger out and internationally compete. The Government has recognised the need to educate/train our youth in engineering & hi-Tech but its putting the cart before the horse without a 20 year economic plan underpinned by policies to industrialise Australia beginning with the onshore processing of our raw materials and secondary manufacturing to meet global demand particuluarly from emerging economies. Successive Aussie Governments have cut FTA with a mix of trading partners but has failed to capitalise on extra trade; instead these FTAs have put downward pressure on Aussie wages rather than improve the economy for all; so much so that we should review some to see if they are still fit for purpose (EG Singapore, Chile)
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PS: Since we now import all of our cars & light commercials , it would not be rocket science to cur a deal with the multinational car manufacturers of access to our auto market (we have too many makes/models now) in lieu of Australia being a global supplier of select machined auto castings. If that didn't work, then the FTA would be of questionable benefit, IMO.