Manufacturing in Australia

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Details: Written by: Richard_McKie; Parent Category: Economy; Category: Markets; Published: 31 August 2011; Hits: 35651

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This article was written in August 2011 after a career of many years concerned with Business Development in New South Wales Australia. I've not replaced it because, while the detailed economic parameters have changed, the underlying economic arguments remain the same (and it was a lot of work that I don't wish to repeat) for example:

between Oct 2010 and April 2013 the Australian dollar exceeded the value of the US dollar and that was seriously impacting local manufacturing, particularly exporters;
as a result, in November 2011, the RBA (Reserve Bank of Australia) reduced the cash rate (%) from 4.75 to 4.5 and a month later to 4.25; yet
the dollar stayed stubbornly high until 2015, mainly due to a favourable balance of trade in commodities and to Australia's attraction to foreign investors following the Global Financial Crisis, that Australia had largely avoided.

2011 introduction:

Manufacturing viability is back in the news.

The loss of manufacturing jobs in the steel industry has been a rallying point for unions and employers' groups. The trigger was the announcement of the closure of the No 6 blast furnace at the BlueScope plant at Port Kembla. This furnace is well into its present campaign and would have eventually required a very costly reline to keep operating. The company says the loss of export sales does not justify its continued operation. The remaining No 5 blast furnace underwent a major reline in 2009. The immediate impact of the closure will be a halving of iron production; and correspondingly of downstream steel manufacture. BlueScope will also close the aging strip-rolling facility at Western Port in Victoria, originally designed to meet the automotive demand in Victoria and South Australia.

800 jobs will go at Port Kembla, 200 at Western Port and another 400 from local contractors. The other Australian steelmaker OneSteel has also recently announced a workforce reduction of 400 jobs.

This announcement has reignited the 20th Century free trade versus protectionist economic and political debate. Labor backbenchers and the Greens want a Parliamentary enquiry. The Prime Minister (Julia Gillard) reportedly initially agreed, then, perhaps smelling trouble, demurred. No doubt 'Sir Humphrey' lurks not far back in the shadows.

So what has and hasn't changed (disregarding a world pandemic presently raging)?

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Travel

Romania

In October 2016 we flew from southern England to Romania.

Romania is a big country by European standards and not one to see by public transport if time is limited. So to travel beyond Bucharest we hired a car and drove northwest to Brașov and on to Sighisiora, before looping southwest to Sibiu (European capital of culture 2007) and southeast through the Transylvanian Alps to Curtea de Arges on our way back to Bucharest.

Driving in Romania was interesting. There are some quite good motorways once out of the suburbs of Bucharest, where traffic lights are interminable trams rumble noisily, trolley-busses stop and start and progress can be slow. In the countryside road surfaces are variable and the roads mostly narrow. This does not slow the locals who seem to ignore speed limits making it necessary to keep up to avoid holding up traffic.

Fiction, Recollections & News

Wedding

Jordan Baker and Jeff Purser were married on Saturday 3rd of December 2011. The ceremony took place on the cliff top at Clovelly.

Opinions and Philosophy

Bertrand Russell

Bertrand Russell (Bertrand Arthur William Russell, 3rd Earl Russell, OM, FRS (18 May 1872 – 2 February 1970)) has been a major influence on my life. I asked for and was given a copy of his collected Basic Writings of Bertrand Russell for my 21^st birthday and although I never agreed entirely with every one of his opinions I have always respected them.

In 1950 Russell won the Nobel Prize in literature but remained a controversial figure. He was responsible for the Russell–Einstein Manifesto in 1955. The signatories included Albert Einstein, just before his death, and ten other eminent intellectuals and scientists. They warned of the dangers of nuclear weapons and called on governments to find alternative ways of resolving conflict. Russell went on to become the first president of the campaign for nuclear disarmament (CND) and subsequently organised opposition to the Vietnam War. He could be seen in 50's news-reels at the head of CND demonstrations with his long divorced second wife Dora, for which he was jailed again at the age of 89.

In 1958 Gerald Holtom, created a logo for the movement by stylising, superimposing and circling the semaphore letters ND.

Some four years earlier I'd gained my semaphore badge in the Cubs, so like many children of my vintage, I already knew that: = N(uclear) = D(isarmament)

The logo soon became ubiquitous, graphitied onto walls and pavements, and widely used as a peace symbol in the 60s and 70s, particularly in hippie communes and crudely painted on VW camper-vans.

(otherwise known as the phallic Mercedes).

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