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