newjez Posted June 13, 2014 Share Posted June 13, 2014 but the price of iron ore has gone through the floor. http://www.smh.com.au/business/markets/iron-ore-hits-a-21month-low-20140613-3a0yd.html This is a big earner for WA. If the price stays low, it could result in higher state govt taxes, more state and fed cutbacks, plus the double wammy of increasing unemployment. Having grown up in WA, I am only too familiar with the boom bust economy. My father was either scratching for work or had so much work we never saw him. There was never a happy medium. What do people think about this, and how it will affect WA's prospects going forwards? Link to comment Share on other sites More sharing options...
Guest Posted June 13, 2014 Share Posted June 13, 2014 Time for the folk in WA to sell their Jetskis and flog off the million dollar mansion. Link to comment Share on other sites More sharing options...
flag of convenience Posted June 13, 2014 Share Posted June 13, 2014 A return to normal where Perth regains its branch office status and slows right down. The boom bust scenario has long been with us in WA, just this last one was far bigger and impacting greater than before. Which could result in a very hard landing. I cannot see how prices can remain so high, especially when the exodus out from within the mining industry and related industry picks up. No wonder Barnett is in a rush to finish the projects on hand. At least for all the pain the boom has caused it has changed the CBD and inner areas more in the last six or seven years than the previous fifty. I expect jobs will be harder to find and more competitive. The bigger East Coast cities will regain their over riding significance over the nation, while WA cuts back in spending that will impact all with even higher charges, in order to repay debt. Ever more young with need to leave WA to further career or just to be somewhere more happening. Link to comment Share on other sites More sharing options...
AJ Posted June 13, 2014 Share Posted June 13, 2014 Time for the folk in WA to sell their Jetskis and flog off the million dollar mansion.Like we all have them! Link to comment Share on other sites More sharing options...
Guest Posted June 13, 2014 Share Posted June 13, 2014 Like we all have them! Oh come on you must at least have a top of the range ute? Link to comment Share on other sites More sharing options...
MARYROSE02 Posted June 13, 2014 Share Posted June 13, 2014 Time to move,back to NSW!? Link to comment Share on other sites More sharing options...
Jack91 Posted June 13, 2014 Share Posted June 13, 2014 *QLD Link to comment Share on other sites More sharing options...
joeperth Posted June 13, 2014 Share Posted June 13, 2014 A return to normal where Perth regains its branch office status and slows right down. The boom bust scenario has long been with us in WA, just this last one was far bigger and impacting greater than before. Which could result in a very hard landing. I cannot see how prices can remain so high, especially when the exodus out from within the mining industry and related industry picks up. No wonder Barnett is in a rush to finish the projects on hand. At least for all the pain the boom has caused it has changed the CBD and inner areas more in the last six or seven years than the previous fifty. I expect jobs will be harder to find and more competitive. The bigger East Coast cities will regain their over riding significance over the nation, while WA cuts back in spending that will impact all with even higher charges, in order to repay debt. Ever more young with need to leave WA to further career or just to be somewhere more happening. Ever thought of moving somewhere more happening yourself? You certainly sound like the life and soul of the party ;-) Link to comment Share on other sites More sharing options...
WeegieDave Posted June 13, 2014 Share Posted June 13, 2014 People misunderstand when talking about the mining boom being over. Record tonnage of ore has went out from Port Hedland this year so far. The mines will be fine.. Sure, the price like any mineral goes up and down whether it be iron ore, nickel, gold etc etc. The mining boom was when they were constructing mines and all the associated infrastructure which obviously employed a lot of people, a large percentage of which were on 457 visas. The mines are now operational so obviously there isn't the employment up North that there was during the construction phases. When the mines exhaust their supplies they explore other areas of land, Geologists are flat out busy then then construction phases kicks off again and there is a big demand for workers.. It's an up and down kind of business. The mines are still churning out ore at a steady pace so no need to panic and think that WA is doomed. Link to comment Share on other sites More sharing options...
Paul1Perth Posted June 13, 2014 Share Posted June 13, 2014 If you read the article it says a few paragraphs down that the miners aren't particularly worried as their break even points are much lower per tonne. I just did a quick calculation and in that one day, last Saturday when they shipped 1.25 million tonne out of Port Hedland the profit for that day is $59,055,000. No wonder they aren't very worried yet. Like the article said the price has been down there before and it bounced back. I expect it will do the same again, especially if the problems in Iraq continue. Price of oil, gold will go up and other commodities seem to follow. I wish I understood why but it just seems to happen. Think WA is OK for a few years yet. Link to comment Share on other sites More sharing options...
Paul1Perth Posted June 13, 2014 Share Posted June 13, 2014 *QLD I go over to Queensland quite a bit and have sat next to a few people who live over there, have to pay for their flight to Perth and back every couple of weeks and it's still worth them working FIFO up North here. Last guy I sat next to was a carpenter and lived in Townsville. Link to comment Share on other sites More sharing options...
Guest Guest66881 Posted June 13, 2014 Share Posted June 13, 2014 Sorry just been in garage throwing a nose over remote door beam. Link to comment Share on other sites More sharing options...
Paul1Perth Posted June 13, 2014 Share Posted June 13, 2014 Like we all have them! They are a bit boring after a few goes I reckon. I know a few people with them and boats, a lot of them spend more time sat in the garage or on the front verge. Too much trouble to take them out. Link to comment Share on other sites More sharing options...
flag of convenience Posted June 13, 2014 Share Posted June 13, 2014 Ever thought of moving somewhere more happening yourself? You certainly sound like the life and soul of the party ;-) What a rather juvenile throw away line. You certainly sound an intellect with clout. Thought off getting out into the world yourself? Life does exist outside of Perth you may be shocked to hear? Link to comment Share on other sites More sharing options...
flag of convenience Posted June 13, 2014 Share Posted June 13, 2014 They are a bit boring after a few goes I reckon. I know a few people with them and boats, a lot of them spend more time sat in the garage or on the front verge. Too much trouble to take them out. Too much a decline in value from what I hear. Hard to move in the sense of resale. Link to comment Share on other sites More sharing options...
flag of convenience Posted June 13, 2014 Share Posted June 13, 2014 I go over to Queensland quite a bit and have sat next to a few people who live over there, have to pay for their flight to Perth and back every couple of weeks and it's still worth them working FIFO up North here. Last guy I sat next to was a carpenter and lived in Townsville. I'd say it depends. Wages are hardly high in many areas considering living away from home. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted June 13, 2014 Share Posted June 13, 2014 I go over to Queensland quite a bit and have sat next to a few people who live over there, have to pay for their flight to Perth and back every couple of weeks and it's still worth them working FIFO up North here. Last guy I sat next to was a carpenter and lived in Townsville. Absolutely! My OH works up in Barrow and many of his colleagues fly in from Queensland and NSW. 2 guys Fifo from Scotland! Link to comment Share on other sites More sharing options...
Johndoe Posted June 13, 2014 Share Posted June 13, 2014 We're doomed I tell ya!....................yet again!.......................5ys (I think it is) that I've been on PIO and am still reading the same doom stories I read when I first joined. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted June 13, 2014 Share Posted June 13, 2014 We're doomed I tell ya!....................yet again!.......................5ys (I think it is) that I've been on PIO and am still reading the same doom stories I read when I first joined. :laugh: Yep 8 years and counting.......... Link to comment Share on other sites More sharing options...
WeegieDave Posted June 13, 2014 Share Posted June 13, 2014 I go over to Queensland quite a bit and have sat next to a few people who live over there, have to pay for their flight to Perth and back every couple of weeks and it's still worth them working FIFO up North here. Last guy I sat next to was a carpenter and lived in Townsville. We have a few guys from QLD on our site up near Karratha at the moment. They pay for their own return flight to Perth. Costs them about 1 days wage out of a 21 day roster. They make plenty of $$$ for it to be more than worth it. Link to comment Share on other sites More sharing options...
legoman Posted June 13, 2014 Share Posted June 13, 2014 They are a bit boring after a few goes I reckon. I know a few people with them and boats, a lot of them spend more time sat in the garage or on the front verge. Too much trouble to take them out. I have felt their pain, Good ole Gumtree bailed me out after a few trips out. far too much hassle lol Link to comment Share on other sites More sharing options...
VERYSTORMY Posted June 14, 2014 Share Posted June 14, 2014 The current price won't be a massive problem for the large miners. It will be hurting the smaller ones - my last company are a small iron ore miner and are now producing at a loss. The mid tier will be getting jittery. FMG produce at cost of about $80. Better than it was - when the price last fell they were producing at $90. The issue is where it ends up though. It isn't that long ago the price was below $20. That will depend on what happens in china. Link to comment Share on other sites More sharing options...
flag of convenience Posted June 14, 2014 Share Posted June 14, 2014 It is not a question of doomed it is the fact that WA has too many eggs in one basket not to be impacted especially hard when China goes off the boil. That is the nature of boom/busts. The previous government got us through the GFC but stimulating the economy. Hence we got through that downturn nationally along with the continued Chinese demand. Hence it is not that it has been predicted for five years, as it is impossible to predict with any certainty while the economy is being stimulated. It may be noted WA has acquired a lot of debt, lost its triple A credit rating, government has told us there is no money available for infrastructure projects. Meanwhile rents are in decline, including in The North and house prices have happily come down two per cent in two months. Just how hard is impossible to say but hopefully it will be more a return to normal pre boom conditions, than anything more sinister. These things don't happen over night just vas the boom took a few years to get in its stride. Link to comment Share on other sites More sharing options...
Parley Posted June 14, 2014 Share Posted June 14, 2014 Don't worry we will still be selling iron ore to the chinese for the next 100 years. Link to comment Share on other sites More sharing options...
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