If it worked in the USSR and East Germany, why not also in Australia

Hey, hey.  All the way.  Central planning’s here to stay.

Good thing the Australian Treasurer is a fan of Ronald Reagan and Margaret Thatcher.

Reported this morning:

Morrison pledges $1.5 billion in manufacturing plan to be co-designed with government.

Yippee.  More government winner picking.  They have such a great record at this.

The package, which is the latest government funding pledge in the lead up to the federal budget next week, has invariably picked a number of winners, namely six priority industries:

  • Resources technology and critical minerals;
  • Food and beverages;
  • Medical products;
  • Recylcing and clean energy;
  • Defence; and
  • Space.

A total $1.3 billion will be spent in these industries over the next four years, starting in 2021, and government is being asked to pull in the one direction with businesses, capital investors and the scientific research community to turbocharge Australia’s manufacturing base.

Next will come the regulatory mandates for so called “private” superannuation to follow.

But don’t worry.  Those Australians who don’t like this policy are free to withdraw their money and leave the country.

Or can they?

Hey, hey.  All the way.  Central planning’s here to stay.

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29 Responses to If it worked in the USSR and East Germany, why not also in Australia

  1. A total $1.3 billion will be spent in these industries over the next four years, starting in 2021,

    Is this in addition to what’s already being spent on these industries, or just an update on what’s being spent on these industries?

  2. Rex Mango

    Speaking to some art school students down the pub other night. They could withdraw some of their super under new rules. All were in favour of leaving it with the government to ‘look after’ for them. Couldn’t believe it.

  3. Bruce of Newcastle

    Next will come the regulatory mandates for so called “private” superannuation to follow.

    ScoMo had been mumbling something about a third round of superannuation withdrawals, but that seems to’ve faded. I suspect a horde of super industry lobbyists wore a trench in the carpet leading to his office door over the last few months. How dare the government let ordinary people have some of their own money?

  4. mem

    The problem with entering into any type of partnership with government is that if you are a business it takes away your flexibility, slows you down and stymies creativity and adaption. The government always wants to fulfill some priority policy whilst your business wants to make money. Having worked in business and government and been part of many joint/ partnership projects my advice to business is do not go there. Even if that means forgoing financial assistance. You are better off raising the funds yourself or working with a smaller budget. You will be freer and have far less paperwork let alone save hundreds of hours in so-called committee decision making and reporting to some naive nerd from the government.

  5. sfw

    Wish they would add mowing and slashing, I wouldn’t mind a shot at the trough. I’d rather no through though.

  6. John Comnenus

    SCOMO and Frydenberg make Rudd and Swan look prudent.

  7. H B Bear

    Can’t wait for the return on this “investment”. It will join all those Holden dividends.

  8. Delta

    Next will come the regulatory mandates for so called “private” superannuation to follow.

    Perhaps but before that would come the quotas to produce a minimum number of tractors or nails.

  9. H B Bear

    The problem with Australian manufacturing has always been the lack of government support. No longer thanks to Fraudenberg.

  10. JD

    Resource Technology: extract coal and uranium more efficently and greenly..
    No HELE, No New-clear 🙁

    Lets export it to countries who are happy for the cheap elextricity both will produce, while we consume recyclable renewable energy 🙁

    Luddites!

  11. John A

    H B Bear #3603299, posted on October 1, 2020, at 11:44 am

    The problem with Australian manufacturing has always been the lack of government support. No longer thanks to Fraudenberg.

    Well, there goes another excuse!

    I wonder what they will try next to cover up their lack of success?

  12. Ian of Brisbane

    Morrison never misses an opportunity to disappoint

  13. billie

    it would be much appreciated if the government removed red and green tape from industry activity including investment in capitol assetts

    free up the tax laws so you can invest in internal R&D and submit your tax return, less the investment, not pay tax, pay for R&D then have to fight the ATO to get your tax back as R&D bounty. once they have your money, they do not want to give it back. you have to pay twice, then gamble on getting something back and f you don’t have a bevy of expensive accountants, forget it

    ever wonder why we have so few startups and places like the USA have so many?

    get off our backs and stop helping us with “guidance and advice” and reduce overheads, make it easier to invest in R&D

  14. mundi

    As with an emergencies, the government opens up its coffers, and select interest groups guzzle down the free funds

    It’s disgusting and laughable that this is being called investment.

    It’s absurd to do anytime, let alone when a trillion dollars in debt.

  15. Spurgeon Monkfish III

    It’s disgusting and laughable that this is being called investment.

    And entirely typical.

    Tax increases = “Budget Savings”

    Any of your income you retain after paying this stupid stupid country’s extortionate taxes = “A Subsidy”

  16. Roger

    If it worked in the USSR and East Germany, why not also in Australia

    It’s actually more akin to fascism, in that the businesses remain in private ownership but are co-opted by the central government to work towards what they deem to be the national interest.

  17. DaveR

    when the government is actually the problem

  18. Louis

    The politicians love it because they feel it’s like a lawful vote buying scheme, buying the support of the business owners, the employees and the electorate it is proposed to be in.

    The public servants love it even more because they get the most of the highest paid new ‘jobs’ that come out of this scheme (to ‘regulate’ it), jobs that will keep going on long after the scheme is ended and the crony-capitalism jobs are long gone.

  19. RacerX

    “Tax increases = “Budget Savings””

    The Queensland Government’s current TV advertising is advising there has never before been so much spent on tax relief.

  20. Alex Davidson

    I managed about 10 minutes of Morrison speaking at the Press Club today before curiosity gave way to contempt and I turned it off. He babbled on with great enthusiasm like someone who had recently found the light of the world, except that it wasn’t Jesus he was talking about but the wonderful future ahead as the government embarks upon socialism 2.0 in an attempt to undo the damage it has done through its extreme and unwarranted overreaction to a newly-identified flu strain.

    It just incredible the way they accept no responsibility whatsoever for the mess they have created, then have the gall to present the cost of undoing the damage as a great benefit. There’s going to be handouts to all in sundry, “investment” here there and everywhere, jobs all around – and all without increasing taxes! If these things were such great ideas, then why weren’t they doing them already?

    We have the misfortune to be living in an era where government has become too powerful and is no longer a net benefit to society, if it ever was. As we have seen, it doesn’t even protect our basic freedoms – always one of the fundamental justifications for its existence.

    The very last thing we need now is more central planning. What we need is vastly smaller government, and respect for individual freedom and property rights. How that might come about under a system where the power of numbers is held out to trump the power of reason is a moot point.

  21. H B Bear

    Makes you nostalgic for Howard as PM when taxpayer money was spent directly on buying votes at election time.

  22. RobK

    A total $1.3 billion will be spent in these industries over the next four years, starting in 2021,
    So does that make it a five year plan?

  23. Chris M

    Too late they are realising the destruction caused by the UN’s Lima Declaration that AU signed in 1975 stripping manufacturing out of Australia.

  24. Terry

    Taxing one hundred productive Australians $100 each, and then whacking down a lazy $10k on a big 6 multi ain’t exactly an “investment”, now is it.

    Slomo & Fraudo are adamant they’ll pay us back, taking another $100 each from productive Australians (if there ends up being any left) to cover the losses from their first foray.

    What could possibly go wrong?

    They should be putting their family homes and indexed pensions up as collateral. It might sharpen the mind (might).

  25. Pyrmonter

    Remember when Turnbull was the worst ever …

    He was far from good, and his departure overdue when it came. But I’d have expected him not to sound quite so much a central planner, a puller of levers and pumper of fluid into the hydraulic Keynesian apparatus.

    Seriously though, it says something quite dire about the whole right-of-centre political culture that this nonsense has (a) been approved by ministers and their staff; (b) will be lapped up and circulated by the party faithful; and (c) will receive no meaningful response from the once ‘liberal’ think-tanks now obsessed with preserving their funding bases by becoming protagonists in the ‘Culture Wars’ – Tom Switzer and John Roskam, that means you.

  26. NoFixedAddress

    The Australia Taxation Office (ATO) has re-launched a tender for biometric anti-spoofing software for the government myGovID digital identity app.

    The liveness detection tender closes on October 20, and the ATO will hold an industry briefing to provide background information. The tender posting describes the need for a “liveness solution” which proves the person registered is live and physically present, with a biometric selfie matched against a stored identity document image.

    A pilot of the myGovID app was completed earlier this year, and the Digital Transformation Agency had hoped to test the biometric component during the first half of 2020. A public beta of the app’s facial recognition feature is now expected to launch in September 2021, iTnews reports. The agencies began testing biometric liveness detection technology from Idemia after a tender in 2018.

    iTnews also notes that the DTA calls the capability it is standing up “identity proofing level three” (IP3), which is the strong assurance level for services with elevated fraud risks. Australia’s government is attempting to make all services available online by 2025, so others would presumably require the same level of identity proofing assurance.

    A pair of security researchers recently warned of an access control vulnerability in myGovID which could allow replay attacks, according to a separate iTnews article.

    https://www.biometricupdate.com/202009/biometric-liveness-detection-planned-in-australia-facial-recognition-in-macau-for-online-government-services

  27. Old Lefty

    Back to a McEwenite chamber of horrors. Where are Bert Kelly and Peter Walsh when we need them?

  28. egg_

    Too late they are realising the destruction caused by the UN’s Lima Declaration that AU signed in 1975 stripping manufacturing out of Australia.

    Beyond parody – they wave goodbye to the whole Australian car manufacturing industry – including Toyota’s robots – then panic over a flu bug and resort to pump priming a busted @rse Economy with Luddite solutions.

    Scotty-from-Marketing’s picked yet another “winner”.

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