I was disappointed to see media coverage in the last few days from union representatives and others calling for more government support for auto manufacturers so that Australian can keep General Motors, Toyota and Ford producing cars here.
While I understand the interest in supporting the manufacturing sector and thereby keeping jobs, government assistance provides false economy, it protects the businesses and those who work in them from reality. This, in my view, makes them less competitive.
I don’t see the long term value in government assistance packages, especially when governments do it for one sector but not another.
Imagine the boost to the economy if every dollar of government assistance was spent on building needed infrastructure or providing for needed and underfunded government resources such as health and education. Surely this more practical investment would be more valuable than protecting uncompetitive industries.
Newsagency businesses live or die by the decisions of those who own and work in the businesses. There is no safety net, no parachute, not since 1999 when the federal government deregulated the distribution of newspapers and magazines. Many newsagents are still digesting the ramifications of the deregulation. This has been made more challenging by the lack of government support.
The auto makers say that they can’t compete with China and India. Hmm, our print products are challenged competing with digital yet there is no support or assistance package.
My point is that governments or all colours support some industries and not others. I think this is wrong.
We all need to be accountable for our situation. Tough as it is, dealing with what we face relying only on ourselves will make those who do make it stronger, more competitive and more valuable to the Australian economy.