Economic Change Hits WA

[flag of convenience]

Not forgetting in the case of WA debt has gone up from $3.6 billion in 08 to over $18 billion and heading skywards under our Liberal State government. Better at managing the economy wouldn't you know?

[Paul1Perth]

Just announced that Australia has lost its treble A rating, any idea what this means for us minions?

 

I am contemplating selling my Uk house as now increased in value more than 10k, trying to time currency exchange timing to maximise funds

 

That is WA that has lost its Triple AAA credit rating, leaving Victoria as the only state with it. What's it mean? Who knows, probably something bad.

[legoman]

Just realised each state has their own credit rating, reading the news on it they saying the increase in population, too much reliance on resource sector etc causing the probs. bit of a concern, might leavhouse sale in Uk til after xmas

[VERYSTORMY]

It looks like the king on the hill is going to have a fire sale with state assets and cuts across the state government. I doubt there will be any area that escapes.

[Guest Guest26012]

Wonder if Barnet will have a garage sale?

[VERYSTORMY]

Wonder if Barnet will have a garage sale?

 

He has already announced there will be. It's expected utilities will be first.

[flag of convenience]

Of course utilities first. That's the reason electricity has almost doubled in price since the emperor took control. Making it attractive to investors. Expect anything not nailed down to be flogged to the highest bidder, whoever and where ever that may be.

[flag of convenience]

There's going to be cutbacks in infrastructure. It wouldn't surprise me if both rail projects are cancelled or the preferred word may be differed, but perhaps for a lifetime. It isn't going to get cheaper. When the mining sector really starts to deplete which in certain resource sectors won't be too long, you can bet they'll be little money to do anything.

 

With Abbott going big on roads which will not solve the problems, just defer them, as rail being no doubt too socialist in his view, the state alone won't be able to afford it.

 

Be a shame if Elizabeth Quay in the centre needs to be scaled back. The biggest boom this state has seen and such limited social dividend. Too much money going out of the state overseas perhaps?

[Petals]

Of course utilities first. That's the reason electricity has almost doubled in price since the emperor took control. Making it attractive to investors. Expect anything not nailed down to be flogged to the highest bidder, whoever and where ever that may be.

 

We have been there and done that and it was not nice, many many Victorians left the state at the time. However we have survived and we have a new business opportunities now, migration agents, house building and servicing the community as its growing and growing and growing. Then there are the roads we build roads which is really a good idea as they can probably build cafes on every intersection as the traffic is banked up going to and fro. A new business opportunity.

[Guest]

So if Australia isnt to rely on the resource sector - what on earth can they rely on. the whole country has been built on it and relies on it !!!!!

There is nothing else but tourism but that tailed off when the dollar went up.

[legoman]

Boom and Bust, happens in every country, UK, USA, Australia. just got to accept when at the top the only way is down and vice versa

budget accordingly. We've had it good here for a long time, now just have to cut the cloth accordingly. Things were down in 2003 when i arrived here.

[flag of convenience]

We have been there and done that and it was not nice, many many Victorians left the state at the time. However we have survived and we have a new business opportunities now, migration agents, house building and servicing the community as its growing and growing and growing. Then there are the roads we build roads which is really a good idea as they can probably build cafes on every intersection as the traffic is banked up going to and fro. A new business opportunity.

 

I know under Kennot. In the 90s living in France, I was assisting the French Electricity Company with their tender to the Victorian Government. The Brit's and I think Americans were in competition all I know is we didn't win.

 

I would say the reliance of service is a too narrow way to run an economy. Melbourne's population is increasing at a cracking pace but what are all these additional folk doing? Proving only services? Buying and selling houses? Produce little of value but service. And when there isn't the cash around the pay for those services? We can all drink coffee from each others coffee shops I suppose.

 

Although the French electric (EDF) were unsuccessful in Victoria were very successful in UK though.

[flag of convenience]

So if Australia isnt to rely on the resource sector - what on earth can they rely on. the whole country has been built on it and relies on it !!!!!

There is nothing else but tourism but that tailed off when the dollar went up.

 

I'm far from convinced tourism would fill the void. Perhaps the Chinese market may keep it ticking over but expect a good deal of the money would stay in Chinese hands. Australia being too far and expensive for most .. They need to innovate. As they say, Necessity is the mother of Invention. Australia had luck on its side, one day it will require foresight into the future as well rather than short termism.

[flag of convenience]

Boom and Bust, happens in every country, UK, USA, Australia. just got to accept when at the top the only way is down and vice versa

budget accordingly. We've had it good here for a long time, now just have to cut the cloth accordingly. Things were down in 2003 when i arrived here.

 

Happens here with all too frequency. Just a few years ago it was being suggested that the boom to bust cycle was a thing of the past. The high's were to last for a century etc, etc.... The difference a year or two make..

[Paul1Perth]

Boom and Bust, happens in every country, UK, USA, Australia. just got to accept when at the top the only way is down and vice versa

budget accordingly. We've had it good here for a long time, now just have to cut the cloth accordingly. Things were down in 2003 when i arrived here.

 

Things were dire here in 92 when we came. We had both given up jobs to come with nothing to come to. We had emigrated on the points system so had permanent residence from day one. Didn't come thinking we would just fall into jobs though, expected it to be just as hard here as it had been in the UK when you're out of work and it was. Took me 5 months to get my first job, the wife was luckier, she's a nurse and started work at Royal Perth after a couple of weeks.

 

Even in those times we still loved it here and knew it was the place for us.

 

The mining boom hasn't really affected us one way or the other, neither of us has managed or sought a high paying job in the mining industry. I never really fancied being away from home working FIFO. Like my time at home enjoying my routine too much. We've got a nice house, in a suburb we like, good friends, good lifestyle so if things get a bit tougher I'm sure we'll get through it and I'm sure Aus will too. For all the doom and gloom talk the mines are still going, the northwest shelf is huge and kicking out huge profits and employing lots of people. Iron Ore and Gold prices seem to have stabilised after all the predictions of the bottom falling out of the market.

 

There will be demand for oil, gas, iron ore, coal and all the other minerals that are laying around in abundance in WA and the rest of Australia and none of it is going to get much cheaper as the world supply gets diminished. Aus is still one of the few places where the political landscape and peoples safety is pretty stable and by world standards, less corrupt than most places. There is an added cost of bribery and safety money doing business in a lot of the world that we are competing against. As well as a chance in a lot of places of Internal Strife where the company involved would have to write the whole investment off.

 

No such worries here...... yet.

[flag of convenience]

Things were dire here in 92 when we came. We had both given up jobs to come with nothing to come to. We had emigrated on the points system so had permanent residence from day one. Didn't come thinking we would just fall into jobs though, expected it to be just as hard here as it had been in the UK when you're out of work and it was. Took me 5 months to get my first job, the wife was luckier, she's a nurse and started work at Royal Perth after a couple of weeks.

 

Even in those times we still loved it here and knew it was the place for us.

 

The mining boom hasn't really affected us one way or the other, neither of us has managed or sought a high paying job in the mining industry. I never really fancied being away from home working FIFO. Like my time at home enjoying my routine too much. We've got a nice house, in a suburb we like, good friends, good lifestyle so if things get a bit tougher I'm sure we'll get through it and I'm sure Aus will too. For all the doom and gloom talk the mines are still going, the northwest shelf is huge and kicking out huge profits and employing lots of people. Iron Ore and Gold prices seem to have stabilised after all the predictions of the bottom falling out of the market.

 

There will be demand for oil, gas, iron ore, coal and all the other minerals that are laying around in abundance in WA and the rest of Australia and none of it is going to get much cheaper as the world supply gets diminished. Aus is still one of the few places where the political landscape and peoples safety is pretty stable and by world standards, less corrupt than most places. There is an added cost of bribery and safety money doing business in a lot of the world that we are competing against. As well as a chance in a lot of places of Internal Strife where the company involved would have to write the whole investment off.

 

No such worries here...... yet.

 

The early 90s were dire as it was, "The recession we had to have", according to then PM Keating. The economy was in transition and I believe the $A was low. Unemployment was indeed high as it got up to about 9%+ from memory. Still Brit's could do reasonably well with what I believe was a low dollar and low house prices.

 

I would suggest there is a world of difference now. Certainly no advantage selling in Britain and buying a canal side house in Mandurah or something similar.

 

As for resources there are finite. Some ores will run out in a few decades others like iron longer, but the quantity being dug up is greater than forecast so not the 70 years I believe originally forecast.

Then there is the sustainability of a city like Perth. Water issues. Over Population and the like.

[Petals]

So if Australia isnt to rely on the resource sector - what on earth can they rely on. the whole country has been built on it and relies on it !!!!!

There is nothing else but tourism but that tailed off when the dollar went up.

 

This is not entirely true, recently resources have had their place, however its agriculture that has always been the mainstay of the economy. That will not change, our farmers are some of the most innovative people in the world and the CSIRO has done great work in the wheat industry for example developing strains that can survive on less water.

 

If you live in Perth do you know we export so many flowers every day.

 

Australians are survivors they have had to be as when they first came they could not nip back to Europe for any equipment, they had to make it all themselves. Hence lots of the inventions in agriculture.

 

As for the minerals Aus is a vast place and there are many many many deposits that have not been discovered or deposits they know are there and have not been used.

 

Aus also exports solar technology to the third world and this is the are we should be pursuing. We have the sun, we have the no how and we should do it.

 

Pity our new gov thinks science is on the nose but they always do being of the legal fraternity.

[Skani]

So if Australia isnt to rely on the resource sector - what on earth can they rely on. the whole country has been built on it and relies on it !!!!!

There is nothing else but tourism but that tailed off when the dollar went up.

 

Australia was built primarily on agriculture.

The current mining "boom" has occurred only since the early 2000s and Australia's economy was very strong before that.

Its contribution to the GDP is currently about 10%....the same as it was in 1900!

The biggest GDP sector in Oz is the services sector (68%)...which includes tourism

[Johndoe]

 

No such worries here...... yet.

 

Of course there is....................we're doomed I tell ya!

 

Att: The Gospel according to PIO.

[newjez]

Heard Rio made some big redundancies last week, my brothers contract in the mines came to an abrupt end and he came back on Tuesday. He's not concerned though, been offered another job already but is holding out for more money.

 

So with all the increasing job losses and supposed doom coming for all - why have house prices increased 10.8% in the past 9 months? The housing market still seems to be on fire despite all of this.

 

the drop in interest rates helped - but will it continue?

 

http://www.rpdata.com/research/daily_indices.html

[newjez]

I thought they already had been?

 

There's going to be cutbacks in infrastructure. It wouldn't surprise me if both rail projects are cancelled or the preferred word may be differed, but perhaps for a lifetime. It isn't going to get cheaper. When the mining sector really starts to deplete which in certain resource sectors won't be too long, you can bet they'll be little money to do anything.

 

With Abbott going big on roads which will not solve the problems, just defer them, as rail being no doubt too socialist in his view, the state alone won't be able to afford it.

 

Be a shame if Elizabeth Quay in the centre needs to be scaled back. The biggest boom this state has seen and such limited social dividend. Too much money going out of the state overseas perhaps?

[Paul1Perth]

The early 90s were dire as it was, "The recession we had to have", according to then PM Keating. The economy was in transition and I believe the $A was low. Unemployment was indeed high as it got up to about 9%+ from memory. Still Brit's could do reasonably well with what I believe was a low dollar and low house prices.

 

I would suggest there is a world of difference now. Certainly no advantage selling in Britain and buying a canal side house in Mandurah or something similar.

 

As for resources there are finite. Some ores will run out in a few decades others like iron longer, but the quantity being dug up is greater than forecast so not the 70 years I believe originally forecast.

Then there is the sustainability of a city like Perth. Water issues. Over Population and the like.

 

Compared to places like the UK we don't really have "water issues". When we moved here I couldn't believe that people had retic connected to the mains where mega litres are put on gardens every day. Sure they've clamped down on it a bit and we are only allowed to have it on 3 times a week now but it's still lots of water. While ever they are letting people do that there are no water shortages. We have several aquifers that are not tapped into yet and now we have the desalination plant (with another one on the way?) water really isn't an issue.

 

Certainly no advantage selling in Britain and buying a canal side house in Mandurah or something similar.

 

All depends if you are happy to stay in the UK and maybe get a decent summer once every 30 years or so or want to move somewhere you are guaranteed one. With the added advantage of an English speaking nation, drive on the same side of the road and is a nice place to live. It's never going to suit everyone, I even know people who don't like the beach??? but if I was in the UK in the same position I was when we emigrated I would still go for it now. The lifestyle we have here is not possible in the UK. So whether it's an "advantage" or not is a personal thing.

 

It's exactly because resources are finite that I think all the doom and gloom talk about mining busts is over the top.

[flag of convenience]

This is not entirely true, recently resources have had their place, however its agriculture that has always been the mainstay of the economy. That will not change, our farmers are some of the most innovative people in the world and the CSIRO has done great work in the wheat industry for example developing strains that can survive on less water.

 

If you live in Perth do you know we export so many flowers every day.

 

Australians are survivors they have had to be as when they first came they could not nip back to Europe for any equipment, they had to make it all themselves. Hence lots of the inventions in agriculture.

 

As for the minerals Aus is a vast place and there are many many many deposits that have not been discovered or deposits they know are there and have not been used.

 

Aus also exports solar technology to the third world and this is the are we should be pursuing. We have the sun, we have the no how and we should do it.

 

Pity our new gov thinks science is on the nose but they always do being of the legal fraternity.

 

While you are quite correct with the historic importance with regards to agriculture innovative or not times have moved on. It is not volume but value of exports. Over the past few decades both sides of government have contributed to making Australian agriculture uncompetitive.

The Australia US Free Trade Agreement you may recall had sugar growers up in arms in QLD. Although the Howard Government was pleaded not to. This agreement facilitated the import of beef and pork from USA as well. Even allowed imports from Europe, an area where the Australian farmer can never hope to compete with their subsidies. (as with the States)

I know farmers in Europe are subsidised to the tune of a hundreds of billions a year.

 

You may recall the pig farmers took Howard, then Lib PM to court. They won (the farmers) Howard appealed and had the original win overturned. Yes A Liberal government looking after Aussie producers indeed. Since then the numbers that have gone to the wall or closed shop has been very high. Well over half from memory of reports I've read.

The matter the farmers went to court on was a well founded fear with regards to biosecurity. The Americans allow Caradox which is an anti biotic and highly questionable to be given to life stock. A highly debateable intervention that has been related to deaths.

Imported American meat still not checked for this as far as I am aware on entry into Australia.

 

Then what about Brazilian beef imports? The QLD MP Katter did at least manage to halt the imports of Pineapples from Philippines after causing an outcry. One of the few victories it would appear as governments march on with little regard for Australia in their opening up of the markets.

 

American grown lemons at times in my local supermarket. I ask you why when in my neighbourhood there are trees laden with them often rotting on the tree.

 

Not forgetting deregulation and the duopoly of the supermarkets and the impact that has had on diary farmers here in WA. I would imagine in other states as well.

 

Climate change has seen a 20% decline in rainfall in WA's Wheat Belt region over a period of decades. Many farmers are in debt relying on handouts from the government. No wonder many are welcoming foreign buyers.

The suicide rate among farmers is well known to be above average.

 

In the golden years of time passed the tariff barriers protected the local agricultural industry.

 

Do folk really think agriculture is going to replace the mining boom in keeping us the richest citizens in Australia's history?

[flag of convenience]

Of course there is....................we're doomed I tell ya!

 

Att: The Gospel according to PIO.

 

At least you are prepared... Doomed may be over playing it ..but then again, forewarned and all that. How's the bunker construction in the backyard going? Is the idea catching on?

[Paul1Perth]

While you are quite correct with the historic importance with regards to agriculture innovative or not times have moved on. It is not volume but value of exports. Over the past few decades both sides of government have contributed to making Australian agriculture uncompetitive.

The Australia US Free Trade Agreement you may recall had sugar growers up in arms in QLD. Although the Howard Government was pleaded not to. This agreement facilitated the import of beef and pork from USA as well. Even allowed imports from Europe, an area where the Australian farmer can never hope to compete with their subsidies. (as with the States)

I know farmers in Europe are subsidised to the tune of a hundreds of billions a year.

 

You may recall the pig farmers took Howard, then Lib PM to court. They won (the farmers) Howard appealed and had the original win overturned. Yes A Liberal government looking after Aussie producers indeed. Since then the numbers that have gone to the wall or closed shop has been very high. Well over half from memory of reports I've read.

The matter the farmers went to court on was a well founded fear with regards to biosecurity. The Americans allow Caradox which is an anti biotic and highly questionable to be given to life stock. A highly debateable intervention that has been related to deaths.

Imported American meat still not checked for this as far as I am aware on entry into Australia.

 

Then what about Brazilian beef imports? The QLD MP Katter did at least manage to halt the imports of Pineapples from Philippines after causing an outcry. One of the few victories it would appear as governments march on with little regard for Australia in their opening up of the markets.

 

American grown lemons at times in my local supermarket. I ask you why when in my neighbourhood there are trees laden with them often rotting on the tree.

 

Not forgetting deregulation and the duopoly of the supermarkets and the impact that has had on diary farmers here in WA. I would imagine in other states as well.

 

Climate change has seen a 20% decline in rainfall in WA's Wheat Belt region over a period of decades. Many farmers are in debt relying on handouts from the government. No wonder many are welcoming foreign buyers.

The suicide rate among farmers is well known to be above average.

 

In the golden years of time passed the tariff barriers protected the local agricultural industry.

 

Do folk really think agriculture is going to replace the mining boom in keeping us the richest citizens in Australia's history?

 

On top of all that you then have people trying to stop the life export trade.