|Posted on March 24, 2019 at 12:45 AM||comments (574)|
The election victory of the NSW Liberal National Coalition is not just a victory for common-sense, it’s also a victory for Australian economy.
It’s a victory for common-sense because the NSW Coalition Government, which came to power under Barry O’Farrell and I in 2011, has performed very well on many measures, including:
- achieving a dramatic turnaround in the State budget, from a deficit budget laden with debt after 16 years of a Labor Government, to a strong surplus budget with funds liberated for improvements to services like health, education and the environment, as well as for renewal and upgrade of critical infrastructure (see below);
- delivery of a record infrastructure program including huge transport projects like the North West Rail link, metro rail and the Westconnex road link in Sydney, and the Pacific and Princes Highway upgrades in regional NSW; and
- restoration of the largest economy in Australia from the worst performing to the best performing in the nation, with record low unemployment.
This track record of sound economic management, strong service delivery and record infrastructure improvements is set to continue under Premier Gladys Berejiklian and Deputy Premier John Barilaro. As the largest economy in the nation, known as “the engine room of the national economy”, the NSW Liberal National Coalition’s victory is also a victory for the Australian economy, at a critical time.
The Australian economy has been underperforming over the past quarter, mainly off the back of a subdued property market, following moves by the Australian Reserve bank to restrict lending for property investors, by State Governments to increase taxes on foreign property investors and by a number of overseas governments (notably China) to restrict capital outflows, particularly those intended for property investment.
These measures alone would have substantially cooled the Australian property market, however policies by the Bill Shorten-led Federal Labor Opposition to increase capital gains tax and eliminate negative gearing for investors, could be regarded as the straw that broke the camel’s back in terms of the property market. As a result, property values around Australia have plunged by up to 20% in some centres, property development projects have been shelved, housing and construction jobs have disappeared and retail sales have slumped, due to declining consumer confidence associated with reduced household equity.
Had the Berejiklian/Barilaro Government not been returned in NSW, the massive infrastructure program would be wound back, with the State Labor leader Michael Daley having promised to cancel a number of key projects. With the loss of jobs and economic stimulus associated with these large infrastructure projects adding to the recent decline in jobs in the housing and retail sectors, this would likely have pushed the Australian economy over the brink of recession.
Hence, there was much at stake in yesterday’s New South Wales election, and the result is a victory for both the national economy and for common-sense. Congratulations to Premier Gladys Berejiklian for a history-making win as the first woman to lead a government to electoral success, and to the Liberal Nationals Coalition for a crucial victory.
|Posted on May 20, 2017 at 1:10 AM||comments (792)|
The China Australla Free Trade Agreement (ChAFTA), introduced just 18 months ago, is already proving advantageous to Australian exporters in key industry sectors, including wine making.
This article in today's Sydney Morning Herald states that the latest data to March 2017 shows a 51% increase in Australian wine sales to China, with the largest increase (87%) in premium category wines ($20 to $50 per bottle).
The value of Australian wine sales to China was AUD $500 million.
This comes after the ChAFTA reduced tariffs on wine exported to China to just 5%, making Australian wines competitive on price with other wine producing nations like France and Chile.
Other Australian industry sectors to benefit from the ChAFTA include aged care, renewable energy, health and pharmaceuticals, especially naturally-based products.
We are proud to work with a premium NSW wine producer, a Victorian biotech company and others in taking advantage of the ChAFTA to grow exports to China.
|Posted on April 18, 2017 at 3:25 AM||comments (17622)|
With the recent rise of anti-immigration political parties like Pauline Hanson's One Nation, and ongoing pressure from trade unions and their political party the ALP, the 457 visa was always going to be targeted by the Australian Government for significant change.
This pressure for change was also driven by repeated examples of abuse, by a minority of employers, a small number of visa holders themselves, and certain intermediaries.
The recent abolition of 457 visas for the fast food sector was a sign of the Government's intentions in this regard (see my blog date 2 March 2017).
So what is the likely outcome of the Government's announcement? Expect 457 visas to be considerably harder to obtain, but do not expect temporary skilled worker visas to disappear from Australian visa pathways completely.
There are many skill shortages existing in Australia, for example in the hospitality sector (particularly in Sydney), seasonal farm work, and in information and communications technology. These industries would struggle to survive without skilled workers on temporary visas, and the impact on the Australian economy would be significant.
So the Government will most likely tighten up on the number of eligible occupations, and increase penalties and enforcement in areas including adherence to Australian industrial relations and human resources laws. But for genuine applications in industries experiencing demonstrable shortages of skilled workers, it will still be possible to obtain a temporary visa.
|Posted on March 2, 2017 at 1:40 AM||comments (1)|
Today's Australian media carried the news that the Government has moved to stop 457 skilled migration for positions with fast food chains. The popular media has supported this move, saying that such migration was taking jobs away from young Australians.
But neither this Government policy nor the subsequent media commentary should come as no surprise. The developed world has seen distinct anti-migration sentiment in recent times,as demonstrated by for example Britain's exit from the European Union and the election as President of Donald Trump in the United States.
Australia is no different, with the increasing popularity of politicians with an anti-migration stance, such as Pauline Hanson and her One Nation party. Even mainstream politics is reacting to this sentiment, including the Federal Liberal/National Coalition Government, and the Labor Opposition.
Hence today's announcement was quite predictable. But is it the thin end of the wedge, with more restrictions on immigration soon to be announced?
One would hope not, as immigration has been crucial to Australia's economic and social development. During my almost 4 years as NSW Deputy Premier, I introduced a new State Migration Strategy, which gave greater emphasis to "high value" migrants, including investors, entrepreneurs, businesspeople and skilled migrants. This policy has no doubt boosted the NSW economy, now easily the strongest performing economy in the nation.
But oftentimes, politics triumphs over good policy, so further restrictions on migration are in my view likely. The upshot for those considering migrating to Australia is that they should not delay their decisions for too long.
|Posted on September 24, 2016 at 10:30 AM||comments (2)|
The "BRIC" (Brazil, Russia, India and China) index of markets has outlived its usefulness, according to a report by Ogilvy and Mather.
The report highlights a shift to South Asia as the epicentre of future economic growth, as indicated by middle class consumer growth. The report states that the middle class across countries including China, India, Indonesia, Vietnam, the Philippines, Myanmar, Pakistan and Bangladesh, will grow by 1 billion people over the next decade.
The implications for Australia in terms of trade and investment are profound, as Australia is part of the same geographic region as this epicentre of middle class consumer growth. Australian business therefore needs to become aware of not only this shift in patterns of global economic growth, but also of the sheer scale of this market growth.
|Posted on August 12, 2016 at 5:10 AM||comments (940)|
The decision of the Australian Federal Government's Foreign Investment Review Board to disallow the partial lease of one of the New South Wales electricity networks, Ausgrid, by Chinese bidders including State Grid, sends the wrong message regarding foreign investment into Australia.
Modern Australia has been built upon foreign investment; the infrastructure needed for a geographically large but young nation has always required investment from abroad. The long terms leases of NSW's electricity distribution assets were deliberately intended to continue this process. The approximately AUD $20 billion raised from leasing a significant proportion of the NSW electricity distribution network companies, was to pay for improvements to the State's transport, water, power and other critical infrastructure needs, upon which economic growth would then ensue.
The NSW Government (of which I was part until April 2015), rightly encouraged bidders from around the world, in order to maximise the value of the assets in the eventual transaction. And it was no surprise that Chinese enterprises, well-versed in the provision of electricity to large numbers of customers in a geographically large nation were amongst the bidders. Indeed, such bids were welcomed by the NSW Government and ultimately proved to rank very highly in terms of the Government's criteria for the transaction.
Importantly, these bids required a very significant amount of time and expense, which would have been considered justified by the enterprises in view of the NSW Government's stance in encouragiing and welcoming all offshore bids.
So for the Federal Government's Foreign Investment Review Board to reject the Chinese bids at the 11th hour before contracts were signed, sends a bad message, not only to China, but to other prospective large-scale foreign investors.
If there are indeed important national security issues at stake with the Chinese bids for the NSW electricity assets, these should have been communicated to the NSW Government and the prospective bidders long before they commenced the onerous and costly process of compiling their bids.
The consequences of this lack of inter-govermental co-ordination, in terms of the Australia-China relationship, and indeed our reputation with other foreign investors, are profound, and will take some time to resolve.
|Posted on January 19, 2016 at 7:40 PM||comments (12)|
The need for professional Human Resources companies to facilitate real, high quality jobs for skilled and qualified Australian migration categories (186, 187 and 457) has never been greater.
Recent cases, including a Sydney restaurant alleged to have significantly underpaid workers on visas (see below) have drawn considerable media attention in Australia, and no doubt have caught the eye of the Federal Government, particularly the Department of Immigration and Border Protection (DIBP) and the Fair Work Ombudsman. In addition, the Australian trade union movement, which is opposed to these visa categories, and their political wing, the Australian Labor Party, watch such cases carefully, in order to help justify their anti- skilled immigration policies.
In addition to this, just last month the Federal Government introduced new rules and associated offences relating to schemes whereby a visa applicant pays money to an employer to be then used as the applicant's wages (ie., they effectively pay themselves).
As more cases of abuse (and even innocent mistakes) of these visa categories are reported in the media, there is a real risk that broader public opposition to skilled migration may ensue. Should this occur, the Government will be forced to respond with further crackdowns and quite possibly the withdrawal of some visa categories.
Australian Immigration and Industrial Relations laws are highly complex, and as I have outlined above, the stakes are high, including cancellation of visas, criminal sanctions including jail terms, and the imposition of further restrictions on immigration.
That's why I am proud to be associated with China HR Australia, which helps skilled visa applicants to find real, high quality jobs, and insodoing, ensures that all Australian laws including Industrial and Immigration legislation, are fully complied with.
For further information on China HR Australia's professional Human Resources services, see http://www.chinahr.com.au
|Posted on December 6, 2015 at 2:30 PM||comments (3)|
A new entrepreneurs' visa announced today by the Australian Government as part of a raft of innovation policies is a welcome development, however it is not likely to become law until at least 2017.
This is because the innovation policies are to be taken to the next Federal election, which is not due until November 2016. Assuming the Turnbull Government is re-elected (which at this stage is likely, given the poor standing of the Opposition Leader Bill Shorten in the polls), legislation for the new visa would probably not be debated in the Parliament until the Autumn session in 2017.
Details on the new visa are at this stage sketchy, apart from mooted relaxed immigration requirements for entrepreneurs who bring innovative businesses to Australia. At this stage it is also not known whether the new visa category will replace an existing visa category, for example the 132(b) business innovation visa.
What is known however is that the Turnbull Government has placed innovation and proactive immigration policies high on their agenda.
|Posted on October 18, 2015 at 9:30 PM||comments (811)|
There are huge opportunities for Australian businesses as the China economy transitions from growth led by infrastructure development and manufacturing activity, to an economy led by cashed up consumers.
A new report commissioned by the ANZ Bank, "Sleeping Giant: China Consumer", concludes that a near quadrupling of disposable incomes in China's urban areas over the next 15 years will transform China's economy, with positive ramifications for its major trading partners, including Australia.
In particular, the report identifies the tourism, education, financial services, healthcare and food and beverage sectors as being in the box seat for the opportunites provided by increased Chinese consumer spending.
Daily Telegraph, 14.10.15
Fortuitously, these sectors in Australia are set to become more competitive for exports to China vis a vis other export nations, as a result of the removal and dimunition of tariffs and levies by the China Australia Free Trade Agreement (ChAFTA).
Despite the recent and continuing trend of decline in the value of resources exports to China, the total value of exports from Australia to China is forecast to rise from $130 billion in 2014 to $250 billion in 2030.
But it won't just happen by itself. Australian businesses need to seize these once-in-a-generation opportunities by becomin export-ready and proactively seeking out potential business partners in China.
|Posted on October 13, 2015 at 11:25 PM||comments (2)|
After months languishing in the Australian Parliament, it seems the ratification of the Australia China Free Trade Agreement (ChAFTA) will finally happen.
Reports in today's press indicate that Bill Shorten's Labor Party, having blocked the passage of the ChAFTA to date, have now put forward conditions to the Government in exchange for their support. The conditions include increasing the minimum wage for 457 visas from $53,000 to $57,000 per annum and amending the Migration Act to force employers with projects over $150 million to seek domestic workers before accepting any foreign labour.
Apart from demonstrating Labor's ignorance of the realities of business (Can they afford an extra $4,000 p.a.? Will 457 employees be immediately productive in a new culture with an unfamiliar language?), their conditions also demonstrate the ALP's preference for politics over good policy. Federal Trade & Investment Minister Andrew Robb had this to say: "the Opposition is looking for comfort through the introductions of provisions that in fact already exist".
Already the delay in ratifiying the ChAFTA has cost the Australian economy hundreds of millions of dollars, so assurances that it will be done by Christmas fall well short of what is needed. It is already mid October and Christmas is more than 2 months away. Every stop must be pulled out by the Government to ensure the ChAFTA passes both Houses of Parliament as a matter of urgency.