Thursday, January 30, 2014

Is it too early for an election?

It seems to me that the Abbott government, having made a decision to keep Barnaby Joyce and the Nationals happy with keeping ADM out of GrainCorp in Australia, decided that it couldn't be seen to be caving in to that wing of the government again, and went against Barnaby in the decision to not throw any money in to keep SPC alive.

It further seems to me that they got this precisely the wrong way around - they would have been better off allowing ADM's bid for GrainCorp and getting those facilities upgraded with foreign money, and doing their bit to keep the rural food and processing sector happy with supporting SPC to the tune of a pretty measly $25 million.

I say this because:

a. I found Sharmon Stone's defence of the case for government support on Radio National this morning quite convincing.  You can read the reasons which she was basically covering in this article.

b.  I just looked up the amount of money the Government spends on drought assistance, and see that it can range in recent years it has ranged from 700 to 400 million dollars.  Drought (and associated water expenses) is one of the reasons given for why SPC has been in trouble over the last few years (not to mention the high Australian dollar, which - as I have noted before - small government types simply don't like acknowledging is a serious problem for Australian industry).  The $25 million is a pittance compared to general drought support - why aren't small government purists complaining that farmers should just move off the land if they can't make their business turn a profit during the drought?  

c. I don't buy much canned fruit or vegetables, but when I try to support the Australian product, and certainly avoid Chinese products at all costs.  (OK, with tomatoes, I do buy Italian canned ones, but not always, and I feel guilty when I do.)  

So, I hope the Abbott government loses another point or two in popularity over this decision.  The downturn in the Abbott government's polling so soon after an election has been truly remarkable.  I expect it to continue that way.

I think he is incapable of good judgement.

Can't Shorten's mother in law declare some sort of canned fruit state of emergency before she hands over the job to Cosgrove, and let us have another election? 

Update:   what a symbol of the Abbott government, hey? - the fact that Cadbury is getting $16 million for its Hobart chocolate factory, as an election promise.  Compared to fruit growers and processors being told to take a hike.

The Abbott government - the "empty calorie" government that's bad for your health.

1 comment:

nottrampis said...

Coca cola bought the company with their eyes wide open.

They have the balance sheet to go forward without the need to dip into taxpayers funds.

you only use taxpayer funds in emergencies like GFCs for example.