Ross Herbert wrote:
On Tue, 27 Mar 2007 07:48:19 -0800, Joerg
wrote:
But why then have many Australian engineers who are self-employed or
own
small shops complained that when they order parts from the US and
other
places they get socked with exorbitant tariffs? I mean, even from a
protectionist's point of view that doesn't make sense as there is no
Australian semi mfg. I am not saying it's the product of your present
administration but often such things are "conveniently" providing a
stream of revenue that nobody wants to give up anymore.
I would agree with these concerns, if they were in fact true. However,
this is not the case.
Maybe you are right. This letter indicates that the really bad stuff may
have been remedied by now:
http://www.aeema.asn.au/ArticleDocum...cheme%2008.pdf
But as I wrote I had numerous AU engineers tell me that it has really
crippled their biz.
As far as small business purchasing any goods from overseas (eg. via
internet) there is absolutely no duty or tax payable unless the value
of those goods is more than $1000, irrespective of whether there is an
Australian manufacturer.
For businesses which must import items in order to produce a product
for sale, they can apply for a Tariff Concession Order which means
that absolutely no customs duty applies as long as those items are not
available from an Australian manufacturer.
http://www.customs.gov.au/webdata/re...Sys_050927.pdf
They should take a hard look at Europe, at what super-protection of
workplaces does to the industry and, in consquence, to a perceived
job security. For example, real age discrimination is rampant. That's
a whole lot better in the US.
The workplace in Europe is somewhat of a mystery, I agree. At one time
(pre mid 1990's) Australian workplaces were dominated by unions and
collective bargaining with pay and conditions determined by Awards
which spelled out every detail of what workers were paid and what
hours they worked with special rates for overtime, weekend work or
unrostered duty. That has all changed since then and workers have
virtually no rights these days. Anybody wanting a job here now has an
Australian Workplace Agreement (AWA) slapped in front of them which
contains only the bare minimum of compulsory conditions determined by
gov't. There is no negotiation (despite Johnny Howard's claim that the
worker now has "choices"), and it is a case of take it or leave it. If
the boss says "jump", the worker now says "how high?"
In the US you typically don't get a contract at all.
The protectionism in Europe is well known - we have all heard about
the "wine lake" and the "butter lake" where farmers are paid to
produce goods which are then dumped - purely to maintain an impression
that their farming industry is larger than it really is. When
arguments are raised from Australia about the levels of subsidisation
of European farmers they counter by saying how many farmers would be
put out of work, even though those farmers are not effectively
contributing any marketable goods to the economy.
That is indeed quite pathetic.
Now if you want to talk about protectionism, then it is hard to go
past the USA in terms of cross-subsidies to the American farm
sector
which prevents Australia gaining access to the US markets for its
efficiently produced farm products. And then there is the matter of
the USA not allowing privately owned luxury vessels which are not
built in the USA to home port over there so our manufacturers can't
gain access to US customers. In order for an Australian owned and
based ship builder to bid for a USN contract (Littoral Combat Ship)
they have been forced to set up a manufacturing facility over
there.
http://www.austal.com/
I doubt the same condition would apply in reverse. We can't be
doing
things too badly here if our small nation can compete with US
manufacturers and beat them at their own game.
For mil stuff that is normal. Any country that has the respective
industries at home will want to make sure that the supply situation
in times of conflict is maintained. Those that don't have an industry
in a particular sector won't have that luxury.
I don't know the boating world when it comes to civilian vessels but
in the aircraft biz there don't seem to be many restrictions. People
fly lots of small (and larger) aircraft made in Europe. Such as the
highly popular Cirrus. They wouldn't do so it those were
prohibitively expensive.
This is an excerpt from a 2006 Aust gov't document
http://www.aph.gov.au/Senate/committ...ort/report.pdf
which spells out the policy of the US with regard to foreign built
vessels.
QUOTE
2.27
The U.S. has a clearly stated and well-established protectionist
policy for their shipping industry. The Merchant Marine Act, 1920
stipulates that no merchandise shall be transported by water between
points in the United States either directly or via a foreign port in
any other vessel than a vessel built in and documented under the laws
of the United States and owned by persons who are citizens of the
United States.
UNQUOTE
While it is probably intended to protect USA interests with regard to
defence vessels it also applies to any other vessel. I recall a few
years back when Australian golfer Greg Norman (the Great White Shark)
wanted to homeport his Australian built luxury yacht in the USA
(because his major business interests were there), and he was
disallowed under this policy. He bought it for $70M and sold it for
$77M - not a bad profit. The shipbuilder (Austal) lost $18M on the
deal. It was when Austal were trying to raise awareness in the USA of
their capabilities with the hope of attracting orders for both
private,commercial and military vessels. They probably figured it was
good business if Greg Norman had one of their yachts homeported in the
US but obviously it backfired. Soon after they set up a facility in
Florida which then allowed them to access the local market - and hence
the LCS contract.
Strange. The protection WRT shipping from one internal port to another
is what most countries do. But import bans would be weird. So he was
forbidden to have that yacht moored here because it was made in
Australia? Then I really wonder why that wouldn't apply to aircraft,
cars etc.
[...]
--
Regards, Joerg
http://www.analogconsultants.com