Dont mention the inflated cost of infrastructure. Or power prices!

Two fascinating pieces on page 4 of The Aust this morning. One was about Setka’s unpopularity in parts of the labor movement and the other continuing the front page piece on public spending the revive the economy. I expected something incendiary from Steve on that.

Apparently the caring souls in the ALP are upset about some comment that Setka made about Rosie Batty and also some bad behaviour with his wife. Can someone verify the story that the industrial muscle and the thuggish standover tactics of the CFMEU have inflated the cost of major building and infrastructure projects by some 40%? Ten per cent would he scandalous but 40?

Would it help our flagging economy to seriously reduce the cost or increase the productivity of the building and construction sector? If only the caring souls in the trade union movement and on the front bench of the Opposition could spare a thought for the national debt and the services that could be provided if the cost of infrastructure could be almost halved

As for spending to revive the economy, that was tried under the Rudd administration. I suppose for poor Steve words failed.

Dare we mention relief from the regulations and imposts on small business. No? Sorry.

And the elephant in the economic room. Trigger warning, this could upset some people. Say it softly to minimise the hurt. Power prices. Adam Smith wrote there is a power of ruin in a country, in other words you can get away with a lot before the crash. Power prices have doubled and people who have talked to their butcher, backer and barista will have to wonder what will happen when they increase some more. As they will. There was a piece in the paper somewhere about Tasmania voices raised in concern about the threat to some significant industries like aluminium smelting.

On the upside, a fascinating piece from Robert Gottliebsen on page 28 reporting a message that the Prime Minister took to the annual dinner of the Business Council. It concerns a major issue for small business and it does not call for a cent of government spending. It is the cash flow problem for small and moderate sized firms when payment from large firms is delayed. I think I have heard that some government departments used to be slow. Gottliebsen reported that the PM claimed that 97% of invoices sent to Commonwealth Gov agencies are now paid within 30 days.

The PM suggested that big firms might lift their game, first of all by signing on to the Business Council’s payments code (which Gottliebsen thinks is too weak). Will the boardroom heavies think about doing the right thing by contractors and suppliers? Not woke like tackling climate change, gender issues and diversity in the workforce. Thank god for Jerry Harvey!

Helpful information re unions from Ivan from the comments

In Qld:

STRIKES and union demands add $50,000 to the cost of every home unit in Queensland’s largest apartment blocks. So says Master Builders, the construction industry lobby group.

And it warns that taxpayers are paying millions more for vital infrastructure such as hospitals because of strikes, pickets, intimidation and inflated wage packages………

“The non-union sector on smaller jobs has 30 per cent less costs.’’

https://www.couriermail.com.au/news/opinion/opinion-how-cfmeu-milked-the-workers-and-gave-it-to-the-alp/news-story/2bb088b4a9d5dadd7ba8808a6dadfa2a

A bonus on the perception of human-induced warming. CSIRO finds less than half of the people in a survey think that humans are a major cause of warming. See the pie chart at the bottom of this piece by Jo Nova.

This entry was posted in Economics and economy, Politics, Rafe. Bookmark the permalink.

17 Responses to Dont mention the inflated cost of infrastructure. Or power prices!

  1. BrettW

    I have seen many articles quoting added 30% due to CFMMEU demands. Outrageous demands, RDO’s, overpaid, walkouts are just the standard.

    Look into any Govt funded hospital and you will note there have been strikes during the build. This includes children’s hospital. There were serious delays in the Brisbane one a few years back.

    Same happened with Commonwealth Games builds and now happening during build of new stadium in Townsville.

    Not sure if the 30% includes the outright extortion of small non Union tradie businesses that get work on some sites. A friend of mine was stood over for what for him was a not inconsiderable sum. He called the main contractor about it and he was re-imbursed for the amount involved. The “benefit” was to the Union site delegates and delivered to a private address. Even after he had settled that they wanted more.

    They are scum.

  2. Old School Conservative

    I think I have heard that some government departments used to be slow.

    Back in the dim dark ages, many suppliers got so desperate for payment they banned further deliveries to the Department of Defence. A re-start was conditional on not only payment for past supplies but also a commitment to an upgraded payment process.

  3. yarpos

    Tassie has been enjoying some quite low prices ever since Basslink broke (again) They may have their answer to the smelter issue.

  4. Dr Fred Lenin

    All western career politicans are arrogantly pushing the people too far with their stupidity and cupidity . They have been getting away with bloody murder and now feel they are bulletproof ,their owners the crony capitalists soros(schwartz ) and his ilk are reaping huge amounts of the peoples money, the climate scam is the greatest movement of money from the poor to the rich in human history, the blatant lies they tell make “let them eat cake syndrome “ which is par for the course with them ,but the people are stirring , like the French did before the Revolution and we all know how the eelights did out of that ,. It is coming to a place near you ,and it wont be pretty . Hope Im about to see it ,watching the mighty fall will be fun ,coukdnt happen to a more deservinng bunch oof crooks.

  5. Pyrmonter

    If Gerry Harvey pays within terms, he’d be a unicorn in the large scale retail sector.

  6. Nob

    The overwhelming consensus among Australians seems to be that unions are a net good.

    I’ve long argued that Australian unions are now power-seeking criminal structures and must be costing the country a fortune in infrastructure and passed-on costs but everyone goes But safety! Race to the bottom! Wages and holidays!

    The fact that in my younger days I have been more involved in unions than any of them cuts no mustard. Unions are God.

    I can believe 40% but it would be a brave researcher who did the research to find what the comparative cost really is, whatever it is.

    Does Australia even have such people?

  7. Rafe Champion

    Yes people have sentimental views about trade unions. Check out W H Hutt on the myths that sustain them.

    http://archive.hrnicholls.com.au/archives/vol27/champion2006.pdf

  8. Is that the Gerry Harvey that wailed and moaned about people being able to buy overseas goods up $1000 and not have to pay GST?

  9. Rafe Champion

    Point taken, just be grateful when he talks sense against the tenor of the times.

  10. Ivan Denisovich

    I have seen many articles quoting added 30% due to CFMMEU demands.

    In Qld:

    STRIKES and union demands add $50,000 to the cost of every home unit in Queensland’s largest apartment blocks. So says Master Builders, the construction industry lobby group.

    And it warns that taxpayers are paying millions more for vital infrastructure such as hospitals because of strikes, pickets, intimidation and inflated wage packages………

    “The non-union sector on smaller jobs has 30 per cent less costs.’’

    https://www.couriermail.com.au/news/opinion/opinion-how-cfmeu-milked-the-workers-and-gave-it-to-the-alp/news-story/2bb088b4a9d5dadd7ba8808a6dadfa2a

  11. Lee

    My contact in the building industry says that workers in the CFMMEU get a bonus just for turning up for work each day!

    Absolutely, unbelievably friggin’ outrageous!

    And here I was thinking that was why people are a paid wage or salary in the real world.

  12. Nob

    Rafe Champion
    #3148253, posted on September 5, 2019 at 5:11 pm
    Yes people have sentimental views about trade unions. Check out W H Hutt on the myths that sustain them.

    Yes I’ve read that but might as well ask my union loving friends and family to pick up a red hot poker by the hot end as read anything that questions union myths.

  13. Dr Fred Lenin

    Trade unions a worthy idea infiltrated by the elitist corrupt leftist aspiring politiical class .

  14. Mark A

    Dr Fred Lenin
    #3148475, posted on September 5, 2019 at 10:35 pm

    Trade unions a worthy idea infiltrated by the elitist corrupt leftist aspiring politiical class .

    Agreed.
    Concept is sound, execution is corrupt at least in current times.

  15. Herodotus

    There’s no sign that conservative governments have a plan to restore affordable and reliable power. All the talk is about squeezing the retail end to get some pathetic reduction in prices.
    Chris Kenny yesterday banged on about the “quiet Australians” who only made their views plainly visible at the voting booth. Really? How come we have had so many crap Labor governments at state and federal level?

  16. Herodotus

    Those of us old enough to remember will recall a time when Labor and its union minions went on ad nauseum about the cosy arrangement between conservatives and the business world aka the big end of town.
    The topsy turvy present gives us the situation where the unions via their super funds can give Labor plenty of cash, while donations to conservatives are under the microscope, and business is running scared of being seen to be either partisan or non-woke on all the pc trash issues.

  17. teamv

    On 5 September 2019 at 6am, demand in the NEM was 20.6GW.

    Wind power which has an NEM installed capacity of 6.7GW was producing just 0.4GW.

    Solar power (rooftop and commercial) which has a NEM installed capacity of 11.4GW was producing 0GW.

    Source: https://anero.id/energy/2019/september/5

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.