Taking Care Of Business – Abbott’s performance vs Abbott’s words

Posted: March 3, 2014 in Politics

It seems like an eternity ago, but it was only a few months back on September 7th 2013 that Tony Abbott declared Australia was now “Open For Business” after Labor were defeated in the Federal election.

Finally Australia was going to be put on track, because the Liberal Party understood business, and furthermore there was the promise of the creation of 1 Million jobs, 2 Million within a decade from the incoming Prime Minister.

So, how are we tracking on the jobs front and how is being now open for business going now that the Coalition have been in power for roughly 20% of what is likely to be their single term if the polls are to be believed?

Let’s have a look at business investment now that the sign on our door reads “open”.

I’ll use figures from the Bureau Of Statistics as reported by Fairfax as the Bureau are an unbiased and reliable source.

As it turns out immediately after the Coalition victory, in the final 3 months of 2013, business investment in Australia dropped 5.2%, the highest drop in level since the Global Financial Crisis.

The Bureau Of Statistics also reports that the estimates for the 2013-2014 financial year have been downgraded from a year ago when Labor was in power to the tune of 17%.

Wow, a 17% plummet in business investment within a year, it is so good to have “the adults in charge”.

It will probably come as no surprise that forecasts show manufacturing investment is down 20%.

ANZ reported to its clients that business investment may drop up to 11% and described the financial implications of the new direction the country has taken since the “adults” were put in charge as

“Over the cliff we go”.

What is eye-opening though is that mining industry investment is also forecast to be down a colossal 25%. This is the industry that really pushed hard for Abbott and the Coalition to be put into government, with a 25% drop in business investment they must be feeling like they backed the donkey in the Melbourne Cup.

Well maybe a donkey is a bit harsh, perhaps just an ass.

A donkey's ass and Tony Abbott - Can you spot the difference?

A donkey’s ass and Tony Abbott – Can you spot the difference?

So how about employment, how is that tracking?

Well despite a huge spike in the number of spin doctors employed by a Minister For Immigration Scott “No Comment” Morrison we have yet to see the million jobs that the Coalition promised to deliver.

Instead the numbers of jobs seems to be falling off the same cliff ANZ’s investors jumped off.

Perhaps the one job that should definitely be lost is that of Employment Minister Eric Abetz. Rarely have we seen a Minister fail in their role so dramatically in such a short period of time.

Eric Abetz - Oh, did we say we'd lower unemployment?? My bad...

Eric Abetz – Oh, did we say we’d lower unemployment?? My bad…

Unemployment has risen approximately 20% since the Coalition came into power.

The unemployment rate hit 6% in February for the first time in over a decade.

The unemployment rate never hit this rate through the entire time Labor was in power, not even through the Global Financial Crisis.

In fact the last time unemployment was this high in Australia was under the Coalition back in July 2003 when we had another failure of a Minister running the show. That Minister For Employment and Workplace Relations was none other than Tony Abbott.

Those who think that a jump of 20% in unemployment is a failure better brace themselves for what is yet to come which some would describe as catastrophic.

This rate of 6% is current and therefore does not take into account some of what we know is yet to come with “adults in charge”.

In recent news we have seen that Qantas is set to slash its workforce by 5,000.

Joe Hockey displayed his understanding of economics when he tried to blame the Carbon Price for the closure of two Alcoa smelters in a move that will cost another 1000 their jobs. Alcoa as it turned out made a tidy little profit of around $46 Million after it traded its carbon permits on the market, however that received far less press than Hockey’s false claims.

You should have used a calculator Joe....

You should have used a calculator Joe….

The Federal Government were spared the embarrassment of having to explain further why they would bail out foreign confectionary company  Cadbury and at the same time let Australian farmers and the fruit industry suffer by not assisting SPC Ardmona.

The extraordinary attack on SPC and it’s workers led by Eric Abetz and Tony Abbott was exposed as nothing more than lies by a member of their own Party.

The government were spared only because the Victorian Coalition find themselves in a state of sheer desperation in the lead up to an election and craving good news to report, coughed up the cash.

We are also yet to feel the brunt of the usual wave of privatisation that comes with a Coalition government, although we know Medibank Private is on the list.

Perhaps the biggest shock that is yet to come will be the death of the Australian car industry which employs approximately 50,000 workers.

That is 50,000 families that will suddenly be down an income.

With unemployment climbing and set to go through the roof it seems timely that the government is now looking at welfare reform also.

The flow on effect from the drastic rise in unemployment is a vicious cycle as the impact reaches other sectors of the economy. First to feel the impact will be the retail sector as families cut back on spending. Also rapidly  impacted will be the travel and hospitality industries, and the result of this will be more unemployment as employers cut costs.

Those of you who were hoping for a double dissolution election that Abbott promised he would do if necessary to remove the Carbon Tax he also promised to immediately legislate to remove, a promise he has already broken, will be hoping in vain.

tony-abbott-carbon-tax-billboard-460x250

With polling the way it is now you have a better chance of spotting Salman Rushdie loitering outside a Mosque in Islamabad than seeing a double dissolution election.

So there you have it, Abbott’s words versus Abbott’s actions.

If this is what the adults call “open for business” then I’m sorry, but those adults must be smoking crack.

If things keep up like this maybe we’ll all end up smoking it…

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Comments
  1. M. R. says:

    I absolutely LOVE this kind of reportage, Wixxy: my feeble brain knows what’s going down, but it needs factual input! Thanks muchly.

  2. Steve Ackerman says:

    Thanks for cataloging the Abbott failures Peter, the list will grow I’m sure. Remember how they were going to be the adult government, accountable with no excuses, really ?They have predictably blamed the former government, lashed out at unions and workers, anyone but them or the external factors beyond any governments control, They are being exposed for what they are, Cheap Labour Conservatives who believe in social hierarchy and privilege, hate bottom up prosperity and will use their economic failures as an excuse to implement Workchoices Mk 2….Serfchoices.

  3. Wayne Rowles says:

    Well we didn’t expect much else from the LNP-lies,spin,obfuscation.That’s their stock in trade,slash and burn,to suit their political masters,namely Rhinehart and Murdoch.And the main part of the equation is more kudos to them and more money in their pockets.

  4. jane says:

    Great post wixxy setting out in grim detail the cost to the country of electing the Liars to government.

    Things are different this time round for these chronic under achievers. No mining boom to cover their incompetent backsides as they hand out bribes to the undeserving wealthy. Overweening arrogance, incompetence and ineptitude are their stock in trade currently being laid bare for the world and his wife to see, as well as their abuse of asylum seekers and appalling relationships with Indonesia and China, our biggest trading .partner.

    It’s a very poor state of affairs when the likes of China and Iran feel confident enough to chastise this country wrt human rights abuses, but this is what we have been reduced to after a paltry five months of government by this mob of liars and incompetents.

  5. owen1967 says:

    unemployment is rising you say … forget election promises (from either party) that’s just a popularity contest (and a poor one at that!) … i would suspect an agenda of continued support for the business sponsors (the rats faithfully following the tune of the piper/s) … more unemployment = greater competition for jobs (and we know how our political masters LOVE competition) … which in turn = lower wages … and continued record profits (odd that there be a continuation of record profits when times are soooo hard for business … maybe they just mean small business (which is little more than an opportunity for big business takeovers … if they look marketable and profitable).

    they seemingly (hopefully) sucked most of middle Australia in with a crooked deal and racist / religionist bullsh1t (which is arguably worse than the last mob – looks to me to be little more than a one-up-man-ship competition on who could create the most inhuman policy) .. otherwise we live amongst some pretty thick skulls … and big-time gamblers … again … still

  6. Wayne “please explain economics to me with a flow chart” Swan predicted within his last magnificent piece of budgetary slipperiness that unemployment would rise to 6.25% if his government had been re-elected, why? Because a decline in mining investment, as the mining boom transitions from construction to production the amount of capital and labour declines, this process is expected to increase for quite some time into the future.

    As for SPC, I suggest you go and read the EBA that they have, and the member of the party that was quick to allege dishonesty on the PM’s part later retracted that claim after actually reading the EBA.

    The Australian Automotive Components Industry has been undergoing a transition for a long time, and had the Automakers survived the locally sourced product within the vehicles would still have to decline to keep costs under control. Holden admitted that had it stayed in Australia the locally sourced content in the Commodore would have to drop to near nothing in order to compete on price. GM in Detroit did everyone a great favour by pulling the pin on the silliness when it did.

    And the ALP actually agrees with the sale of Medibank Private, and had obviously considered the sale itself as a means of meeting its ever growing debt commitments. As for the states recycling their capital into new projects, that is actually sound financial advice. And as for privatisation, the ALP in Qld near sold everything that wasn’t nailed down, and some of the things that were. So to assume or allude to the LNP being the party of privatisation is just nonsense, even Keating was a fan of privatisation, and still is.

    As for the polls, the ALP’s primary vote is still bouncing along the bottom, and the likelihood of that translating into a massive electoral win in 2016 is religious devotion over-coming reason.

    • allenmcmahon says:

      Any idea where the one million jobs are coming from over the next five years?

    • mike says:

      The mining industry has only 1.9 percent of the workforce so to suggest a drop in investment is all that is to blame for rising numbers in unemployed is ludicrous and to suggest that Keating was all for privatization means nothing.
      Dont know if you picked this up but Keating hasnt been in politics since 1996 and times change.

  7. allenmcmahon says:

    No need to worry as the ranks of the ‘green army’ swell and they put their $300 a week into the economy the country will thrive and prosper. And just think of the environmental benefits as Tony’s army eradicate trees and plant weeds.

  8. Kevin O'Dea says:

    Had the Coalition been in government during the Global Financial Crisis of 2008, Australia would have been mired in a major depression just like Europe and other parts of the World, with very dire prospects for recovery. The Rudd Government, through its stimulus program, kept the economy on song through those years. People should remember this as historical fact, not spin.

  9. Fed up says:

    How is sending jobs offshore, good for the Australian economy. By the way, the PM deeply regrets.

    Qantas, not happy.

  10. oldfart says:

    thats good use of our money by adults, 99 spin doctors in immigration. What are they employed to do,come up with 99 new ways of saying “no comment”?

    And what of the unemployed, is this all part of small government? Driven by a shrinking income base of dwindling PAYE’s? I think that Tony and the sexual intellectuals (nice name for a band) are on the nose, well and truly.

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