Abbott nixes bail outs

February 2nd, 2014 at 12:00 pm by David Farrar

News.com.au reports:

Abbott pinned his free-market colours to the mast at an important speech at Davos earlier this month – the premier annual gathering of the world’s economic and business elite.

The former Roman Catholic seminarian urged attendees to become “missionaries for freer trade” and fight protectionism whenever and wherever it may raise its ugly head.

Free trade was a well-trodden path to wealth creation, he explained. “Over time, everyone benefits because, in a global economy, countries end up focusing on what they do best. A more global economy with stronger cross-border investment eventually helps everyone because it generates more wealth and ultimately creates more jobs.”

This is very true.

And, as it turns out, Australia is not very good at canning fruit.

Putting his words into action, Abbott last week successfully stared down a three hour bid in cabinet by Nationals colleagues to secure a $25 million taxpayer handout for the embattled fruit cannery, SPC Ardmona.

Free trade and the rigours of globalisation are perhaps the primary reason why SPC’s factory – which must pay far higher wages than in competitor countries – is unprofitable. That, and it seems Australians don’t much fancy tinned fruit any more.

SPC’s cannery in Shepparton employs about 3,000 workers, but it has been operating at a loss of more than $400 million in recent years, according to local Liberal member Sharman Stone.

It’s only natural to worry about the loss of Australian jobs.

But a job in an unprofitable company is a job already lost.

The same applies to jobs that only exist due to subsidies, such as “Green jobs”.

The only way to create jobs is through the efforts of profitable companies.

As Abbott told Davos attendees: “You can’t have strong communities without strong economies to sustain them and you can’t have strong economies without profitable private businesses.”

“After all, government doesn’t create wealth; people do, when they run profitable businesses.”

Some on the left rail against profit, but how many jobs would we have without profitable businesses?

 

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28 Responses to “Abbott nixes bail outs”

  1. Kea (11,878 comments) says:

    Free trade and capitalism ended the cold war and improved relations with the Chinese. It will work with Muslim world too. Relationships with mutual benefits are the best way we have of preventing war and poverty.

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  2. HB (287 comments) says:

    I guess this is why Pak n Save has had SPC canned fruit at 99c a tin the last few weeks? Maybe they offloaded a heap of stock at bargain prices to bring in some much needed cash?

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  3. dime (9,368 comments) says:

    so they have lost 400 million in the last few years, but if they could just get a hand out of 25 million they would be ok?

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  4. dime (9,368 comments) says:

    “The same applies to jobs that only exist due to subsidies, such as “Green jobs”.”

    every day gareth from the greens tweets about green jobs. we should be focussing on green jobs.

    can someone tell me what a green job actually is?

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  5. OneTrack (2,575 comments) says:

    “can someone tell me what a green job actually is?”

    Beneficiary

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  6. big bruv (13,217 comments) says:

    dime

    A green job is staying at home on the DPB (inclusive of WFF) smoking fags and drinking piss. It also means that somebody else will feed your kids at school and that nice Mr Cuntliffe will buy them another pair of shoes as they (apparently) only have one pair.

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  7. Anthony (766 comments) says:

    Work do the left in NZ continue to think the govt can create jobs?

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  8. Peter (1,577 comments) says:

    I know the right-mantra is that “more jobs are created”, but is this still true? Are the jobs created, and are they created fast enough? What type of jobs? Better jobs? Worse jobs? How many? Explain the mechanism.

    Because technology may be replacing jobs, but not creating them.

    http://www.economist.com/news/leaders/21594298-effect-todays-technology-tomorrows-jobs-will-be-immenseand-no-country-ready

    I’d hate to think the luddites might be right about anything, but would be interested to hear people’s views.

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  9. dime (9,368 comments) says:

    Peter – same response everyone gave to the musos when people started downloading music for free – learn to adapt

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  10. NK (1,066 comments) says:

    can someone tell me what a green job actually is?

    A Green job is actually a Red job.

    At the last election I asked the Green candidate what a green job was when she started spouting on about it at a public meeting. I was a candidate too, and from behind her I yelled the question out when she was speaking. I’m a little rude like that. I asked her two or three times to explain what a green job was.

    Do you think she explained it? Not a chance. She actually had to stop and think and then just went all mumbo jumbo. It was quite revealing.

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  11. Southern Raider (1,539 comments) says:

    A green job should be one when your in between one real job and another.

    Basically picking up rubbish, cleaning the water ways and building walking tracks for DoC

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  12. Peter (1,577 comments) says:

    Peter – same response everyone gave to the musos when people started downloading music for free – learn to adapt

    I know the rhetoric. I’d be interested to see the data.

    It’s possible that technology now destroys the middle class. It funnels wealth up to the owners of the technology. It leaves behind a lot of low paid service work, WalMart being a good example. They are just as much a big data company as they are a retailer.

    It creates some high paid technology jobs, but guts the middle. There is no adapting as the ladder is no longer there to be climbed, for most.

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  13. Tom Barker (102 comments) says:

    “I was a candidate too, and from behind her I yelled the question out when she was speaking. I’m a little rude like that.”

    How did your public rudeness serve you in terms of votes in that election?

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  14. big bruv (13,217 comments) says:

    “How did your public rudeness serve you in terms of votes in that election?”

    No better or worse than the Green candidate obviously.

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  15. Peter (1,577 comments) says:

    Gareth has a green job.

    The job is to spout inane green rhetoric, typically via Twitter. For this, he gets paid 150K plus expenses. I would quite like a green job spouting inane green rhetoric via Twitter, as it surely beats working.

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  16. tvb (4,196 comments) says:

    The Nationals got their way with the seed company takeover. They were not going to get this one come hell or high water. People are always predicting trouble in the Abbott government but Tony Abbott to me seems to be a very skilful party manager.

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  17. Brian Smaller (3,983 comments) says:

    “can someone tell me what a green job actually is?”

    It is one that costs about half a million dollars to set up and puts two other people out of work.

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  18. Maggy Wassilieff (242 comments) says:

    Here was an example of a green business…. Living Earth’s sewage & green fill composting operation in Carey’s Gully, Southern Wellington.
    http://www.infonews.co.nz/news.cfm?id=10866

    During the 10 or so years that it ran it stunk out the neighbouring suburbs…… Took a long time for the Council to finally admit that the composting plant was responsible for the foul odour.

    Seems these greenies couldn’t organise and run a fairly basic composting operation correctly…..

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  19. wikiriwhis business (3,883 comments) says:

    ‘Some on the left rail against profit, but how many jobs would we have without profitable businesses?’

    That’s why capatilism works. Butt he left blame capatilism for wrecking society when it’s really corporatism
    using capatilism to over rule then eventually destroying competition and trade.

    Exactly how the Nazi’s used democracy to destroy democracy.

    The TPP will be the final corporate tool to destroy democracy in the name of free trade.

    To be signed by our corprate PM who will more than likely flee shortly after the signing.

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  20. wikiriwhis business (3,883 comments) says:

    ‘Work do the left in NZ continue to think the govt can create jobs?’

    The govt could create jobs for the unemployed culling possums and stoats instead of spending $21 mill on dangerous pesticide that enters our waterways and kills everything.

    Criminal actually. The National Party should be put in front of the Hague International Court for Justice as
    enemies of humanity. Labour too if they continue the same destructive protocols.

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  21. DJP6-25 (1,268 comments) says:

    About time.

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  22. Anthony (766 comments) says:

    Of course I did mean to say “why do the left continue to think that the govt can create jobs?”. That generally involves taxing someone to enable the govt to spend money somehow subsidising or directly employing extra people, so means the govt has to be better at spending money than the people they are taxing. A very dubious assumption!

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  23. OneTrack (2,575 comments) says:

    “Gareth has a green job.”

    Yes, he flys up and down the country warning people of the evils of carbon and how they should stop .. flying up and down the country.

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  24. Paulus (2,493 comments) says:

    Of course it is a one off handout like the maori settlements – until the money runs out – then come back for more

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  25. emmess (1,368 comments) says:

    Maybe, Metiria Turei will give her endorsement to Abbott’s refusal to accept corporate welfare if she can ever figure out what that is.

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  26. simonway (371 comments) says:

    Tony’s okay with subsidising Cadbury to the tune of $16 million, though.

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  27. Brian Smaller (3,983 comments) says:

    Tony’s okay with subsidising Cadbury to the tune of $16 million, though.

    Yes but Willy Wonka and the Fruit Cannery doesn’t have much of a ring to it.

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  28. Ben Dover (526 comments) says:

    Tony needs to stop the Boats so he can then
    prepare for the ones being built for the Next Great War in the Pacific

    Kick off 2030-2033

    You are invited Nuu Zealand

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