Follow by Email

Wednesday, 5 October 2011

ROTHSCHILD AGREES WITH ME

On 2nd October 2011 I stated in my blog that Australia needed a manufacturing industry for a variety of strategic reasons, but the 9% Superannuation levy on top of other imposts has put our manufaturing
employers at a greater disadvantage than of those of  overseas employers making
similar products. It is now cheaper to buy from overseas rather than make a
whole range of products in this country. Its not a matter of efficiency anymore
...its a matter of higher cost.

In my view the levy helps  our competitors in two ways; the first benefit being that foreign companys gain a price advantage and secondly the levy $'s are more likely to be invested in foreign stockmarkets to buy into those cheaper manufacturing companies.  The levy also discourages our banks from lending to our manufacturers because the banks know they are doomed to fail.  Are we the clever country or the silly country? While we invest overseas...the overseas companies are buying our cheaper more valuable assets
here and we complain that we are being bought out
. WHOSE FAULT IS THAT? ARE WE
STILL THE CLEVER COUNTRY?

In the Australian Newspaper on 4th October 2011 it was reported that Trevor Rowe Executive Chairman of investment bank Rothschild supported my views on 2nd October by saying " You see costs escalating but productivity declining and thats the real problem or conundrum that we have in our economy, because falling labor productivity and rising costs just obviously results in us being less competitive both internally and externally" said Mr Rowe at this week's government run Tax Forum in Canberra. Mr Rowe also went on to suggest that reforming the Australian tax system would help more firms employ more people and also invest in the booming Asian markets? How will that help Australian businesses become more competitive?  But Trevor Rowe was speaking from a Bankers point of view. The only tax reform to help create more jobs would be to abolish state payroll taxes and increase end income taxes , however do we really need more people in jobs at this stage of the economic cycle?

No comments:

Post a Comment