Thursday, April 14, 2011

Loons From Labour

Over these last few days the intelligentsia of the Labour Party have been attacking Blenglish because he was astute enough to publicly encourage more Australian companies to shift their production (and jobs) to New Zealand.

Mr English cited the 30% difference in wages as one of the incentives. In the eyes of the Loons from the Left this was tantamount to treason. I don't intend to to give these loons any more oxygen but perhaps they might learn a few facts of commercial life.

First, when Adolf's then employer set up a joint venture with a Victorian manufacturer in 1987 to open up a market in Australia, it very quickly became evident that it was more economic to manufacture in New Zealand and export to Australia than it was to manufacture in Melbourne. The reasons were exactly the same reasons as apply today and to which Mr English referred.

Lower wages in New Zealand and dramatically higher 'on costs' in Australia.

Nothing really has changed. Oh and by the way, care to remember which party was in power in NZ during the mid eighties?

Today, an Australian manufacturer paying $100.00 wages in Australia has on costs of +5% superannuation and 5% payroll tax, in addition to the ACC and Kiwisaver costs applying in NZ. With the exchange rate hovering around 75% it's not hard to see the attraction.

The real wage bill in Australia is actually $110.00 Aust currency.

He can employ the same labour in NZ for $100.00 NZ currency so his real cost is only A$75.00 and he has the big bonus of automatically gaining access to the Chinese market. (Rat Fucker Rudd never quite got around to organising a Chinese FTA. They don't like being called names by a smarmy sawn off lying little runt.)

But that's before we adjust the rate again by the 30% wage differential So in fact he pays only A$52.00 to buy the same quality labour which in Melbourne or Sydney would cost him $110.

The loons from Labour don't seem to really that these are new jobs for New Zealanders. The Australian employers can afford to pay a premium and select only the very best of the work force. That means some more of Mat McCarten's dead shit supporters might actually find themselves filling entry level jobs as they get kicked off the dole.

In plain English that even Labour's Loons might understand, it all means MORE JOBS and HIGHER WAGES

Thus it was with very great interest that Adolf noted this gem from today's Transtasman report.

".......there is some evidence Aust companies are moving to take
advantage of the FTA by starting up subsidiaries in NZ to exploit the freer market access which Aust does not yet enjoy."
You see, Aussie businessmen are ten times brighter than NZ Labour Party drones who only now are waking up to market reality and are desperate to paint something really good for NZ as really bad.

The latter should be taken out by the Navy and tossed overboard somewhere off East Cape, along with their idiot friends the Greens.


Psycho Milt said...

The reasons were exactly the same reasons as apply today and to which Mr English referred.

Not to mention, exactly the same reasons as applied during the term of the last Labour govt, during which right-wing bloggers constantly frothed at the mouth over the terrible crime of a significant wage rate gap between NZ and Aus and how it was compelling evidence of the utter moral bankruptcy and incompetence of the then govt. How times change, eh?

Adolf Fiinkensein said...

Aaaaah Milt. That had nothing to do with their moral bankruptcy and incompetence.

Try Wananga and bribes for wealthy families instead.

Anonymous said...

Its only causing a fuss because we like to think we are rich and flash. Borrowing will let you live the lie - for a while.

Our real problem is aetheists that won't allow natural selection to takeplace.

Anonymous said...

But you're missing very important things in that analysis.

1. Aussie workers actuallly fucking work - they are at least twice as productive as Kiwi workers.

So you have to pay $104 in NZ, $110 in Aus.

2. Transction, forex risk, health and safety, The Treaty etc. And of course militant unionism and hard left governments - Gillard, for all her communist policies is still far to the right of John Key, and hell, to the right of ACT!

that's worth about another 50% so now you're up to $150 in NZ as against $110 in Aus.

3. If you're going to offshore, go to fucking China. Workers are only about $2, you need 10 of em' to do the work of 1 Aussie, plus the same in bribes, but it's still only $40 or $50.

The upshot of this is: you have to pay not $54 but $156 to get the same final product out in NZ than you would in Oz. but if NZ want's to compete, it needs to get that $150 down to something like $50 or less at the same productivity

And you wonder why communist NZ is up shit creek.

Psycho Milt said...

Aussie workers actuallly fucking work - they are at least twice as productive as Kiwi workers.

Didn't you once lecture me about how ignorant I am of economics compared to you, Sinner? I suggest you look up the term "labour productivity" - it has little to do with how hard people work but a lot to do with "...the nature and amount of capital equipment that is available, the introduction of new technologies, and management practices." Didn't they teach you that in econ101?

You're correct in that Aus blows us away in terms of productivity, but (as usual) dismally, comically wrong in your assessment of why that is.

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