SA Economy

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Waewick
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Re: SA Economy

#226 Post by Waewick » Mon May 16, 2016 8:07 pm

Spurdo wrote:
Waewick wrote:he just did a whole document on visions and plans which was widely panned for being visions and plans.

We get it, you're a labor voter. No need to pretend your impartial.
Hello Rupert, how's NewsCorp going
Don't read that rubbish

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Re: SA Economy

#227 Post by Vee » Mon May 23, 2016 9:25 am

Grim forecast. "Too vital ... to be allowed to fail".

Economic modelling finds grim SA impact if Whyalla steelworks closes
Any closure of Arrium's Whyalla steelworks would lead to more than 5,000 job losses across South Australia and cost the state's economy as much as $770 million, a study has found.
Arrium went into voluntary administration recently with debts of about $4 billion.

An analysis by the Industrial Transformation Institute at Flinders University found the Whyalla workforce would decline by about 40 per cent if the steelmaker closed, with up to 3,940 full-time jobs lost while overall SA job losses could reach 5,360.

Economic modelling calculated Whyalla's regional economy could suffer a $530 million impact and South Australia an adverse impact of up to $770 million — a much bigger economic effect on SA than from the shutdown next year of car production by Holden at Elizabeth in northern Adelaide.

Professor John Spoehr said his study confirmed Arrium was too vital to the state's future to be allowed to fail and government assistance clearly was essential to support continuing steel production.

"The consequences of closure of Arrium would just be devastating for Whyalla, so every effort has to be made to try and secure the operation," he said.

"That on its own won't be enough — it will be important to look at a diversification plan for Whyalla."
The Arrium administrator is hoping for a taxpayer investment to make the steelworks more attractive to potential buyers.
ABCNews:
http://www.abc.net.au/news/2016-05-23/a ... ds/7436388

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Re: SA Economy

#228 Post by Waewick » Tue May 24, 2016 7:05 am

Could SA just buy it outright?

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Re: SA Economy

#229 Post by Goodsy » Tue May 24, 2016 10:12 am

Waewick wrote:Could SA just buy it outright?
States broke

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Re: SA Economy

#230 Post by bits » Tue May 24, 2016 11:17 am

Im sure we could borrow the money, but that might cost more than the investment is likely to return.

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Re: SA Economy

#231 Post by Goodsy » Tue May 24, 2016 11:42 am

bits wrote:Im sure we could borrow the money, but that might cost more than the investment is likely to return.
Oh yes, more debt... That's going to sit well with the adelaidenow crowd

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Re: SA Economy

#232 Post by monotonehell » Tue May 24, 2016 12:09 pm

GoodSmackUp wrote:
bits wrote:Im sure we could borrow the money, but that might cost more than the investment is likely to return.
Oh yes, more debt... That's going to sit well with the adelaidenow crowd
Not just "debt" but "nationalisation of industry." That's communism! *sounds of calamity and screaming*

While the various state and federal governments are busy selling off all public assets, that is.
Exit on the right in the direction of travel.

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Re: SA Economy

#233 Post by phenom » Tue May 24, 2016 12:23 pm

Sure anything like this will send AdelaideNow into the usual hysterics but they play every side of every argument relentlessly (one day it will be "thousands of hard working aussies dumped", State Govt intervenes, next day "jay blows out debt"). So over it.

This is the kind of calculation the Federal Govt should have exercised with the auto industry - oh no, $500m a year in support to keep 50,000 to 200,000 people employed. Let's cut that amount (when they can then give away $50bn to foreign multinationals without blinking) and then we can all pay the dole for the next 20 years for all the long-term unemployed.

Despite the anti-union rhetoric, our manufacturing is being destroyed by a high dollar induced by commodity exports (now receding but leaving us denuded of much of our industry) and of course massive dumping of products from heavily subsidised producers overseas - China in particular but not just them.

We've happily given away most of our critical industries and capabilities - if we are to preserve anything of substance it's going to have to come at a cost and largely be done by government. There's good reason to believe the SA operations of Arrium *can* be made profitable and it would be an opportunity to save jobs, save capabilities and maybe even get our money back at some future point.

If the ESL goes up another $4 per year (OMG shock horror, end of the world according to AdelaideNow and Indaily) to pay for it then so be it.

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Re: SA Economy

#234 Post by mshagg » Tue May 24, 2016 12:43 pm

Waewick wrote:Could SA just buy it outright?
It's really not worth anything given the liabilities exceed the assets, so the purchase price is likely to be low, but why would we do that? Whilst not ideologically opposed to the idea, im not sure what the end game is in such a scenario.

They lost $236mil in a 6 month period, so it's a likely an ongoing loss position that the government would be buying into. The economic modeling suggests an $800mil impact, I presume on GSP, although over what period I am unsure. It's obvious that it wouldn't take long for a nationalised version of arrium to rack up comparable losses, all of which represent an opportunity cost. How long do we kick that can down the road? Into eternity? It starts to look like circa 1980s british coal mining. The state bank lost a billion dollars and look at the economic cost that had on the state. If the industry - or that particular operation - is stuffed, then I cant help but feel the money would be better spent on a more forward looking solution.

I see they're already introducing protectionist measures under the guise of anti-dumping, with tariffs up to 53%.

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Re: SA Economy

#235 Post by Goodsy » Tue May 24, 2016 1:01 pm

IIRC the steelworks itself it profitable, it's the mine that's losing the money but they're not willing to split them up and sell them off individually

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Re: SA Economy

#236 Post by Wayno » Mon Jun 20, 2016 6:41 pm

Looks like the stamp duty concessional game is being extended beyond the city.

From ABC online
Stamp duty concessions to be extended outside Adelaide in SA budget 2016-17

Stamp duty concessions for off-the-plan apartments will be extended and expanded outside Adelaide in July's state budget.

Concessions of up to $15,500 were due to run out at the end of June but will instead last until the end of June 2017.

They originally applied only to apartments in Adelaide's CBD and some inner suburbs but will now apply to any new apartments built anywhere in the state.

Treasurer Tom Koutsantonis said it was another step in the Government's plan to increase urban density.

"It creates more jobs and more prosperity and more wealth and gives people affordable housing in very limited and scarce land releases that are close to existing infrastructure like schools, buses and existing transport routes," he said.

Mr Koutsantonis said the State Government would continue to offer a $15,000 first home owner's grant for new homes, meaning some people would be eligible for $30,500 in government incentives.

"That's a good deal at a time when interest rates are at record lows," he said.

"I'm not asking South Australians to make decisions they can't afford. I'm just saying to them there's never been a better time to go out and buy a house."

The Treasurer made the announcement at the new suburb of Lightsview in Adelaide's inner north-east.

Lightsview project director Alan Miller said he expected the concessions to draw more buyers to the development.

"It means, from our point of view, it's going to foster even more investment from us, and again, that greatly increases the affordability of housing for all South Australians because we can pass those costs on," he said.

The State Government earlier today also announced a four-year extension to its payroll tax concessions.

Bad saved for 'after the election'
------------------------------------------

SA Opposition Leader Steven Marshall said he welcomed the measures but was concerned the Government was making good news announcements before the election and leaving any bad news until budget day on July 7.

He called on the Government to commit to no new taxes, fees or charges.

"This is a sneaky Government ... that likes to put up taxes," Mr Marshall said.

"There is no other jurisdiction in South Australia that has moved their budget until after the federal election and that makes me very worried on behalf of the people in our state."

Mr Marshall said the budget needed a focus on jobs.

"[And] we need to see the Emergency Services Levy remission reinstated," he said.

"That would be a $360 million windfall for the people of South Australia."
Opportunity is missed by most people because it is dressed in overalls and looks like work.

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Re: SA Economy

#237 Post by SRW » Mon Jun 20, 2016 9:49 pm

I suppose it's broadly a good thing for urban densification in Adelaide, but I had rather liked the development focus the city centre has been enjoying and the trajectory there towards critical mass. I think if our population in the city centre can be significantly increased (if not in Adelaide overall) it'll help to keep us a relevant and attractive urban destination. I wonder if expanding the stamp duty exception to the metro area will now divert investment that might otherwise have been made in the square mile.
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SA Economy

#238 Post by Wayno » Thu Jul 14, 2016 8:41 pm

An isolated occurrence? Or start of a trend?

http://www.abc.net.au/news/2016-07-14/b ... de/7628120
Babcock to move Australian headquarters to Adelaide, lured by defence growth and SA grant


Engineering support services company Babcock International Group will move its Australasian headquarters to Adelaide from Brisbane, citing a growing defence industry as an attraction.

A $2.5 million South Australian Government grant will support the move, bringing about 48 high-skilled jobs to the state.

Premier Jay Weatherill said it was another part of efforts to reposition the state in high technology industries.

"We are transforming our economy towards a high-tech future and, by making Adelaide their head office in Australasia, Babcock is playing an important part in helping us achieve this," he said.

"This company has had a big role in the past in the Collins class submarine and will have a continuing role in sustaining the Collins class until the Future Submarines project arrives."

Babcock International has operations across 16 countries in defence, nuclear, telecommunications, transport, emergency services, minerals and energy and education industries.

Significant flow-on benefits, Government says

SA Investment and Trade Minister Martin Hamilton-Smith said the move was another success story for the state's Investment Attraction Agency.

"Independent analysis by the South Australian Centre for Economic Studies estimates the Babcock expansion will have a $19.2 million impact on gross state product in 2016-17, with total employment impact of 137 full-time positions and other significant, long-term benefits," he said.

Babcock Australasia chief executive Craig Lockhart said a growing defence industry helped convince the company of the merits of shifting to Adelaide.

"We can see that there's a great pool of talent in South Australia, particularly in engineering, and there are promising synergies with the significant and growing defence industry," he said.

"South Australia was the logical choice for our new Australasian headquarters and the Babcock Mission Critical Services base because it expands our existing presence here and centralises our helicopter operations in Australia."

Babcock's Mission Critical Services support such things as search and rescue, surveillance operations, emergency retrievals and transfers to and from offshore drilling rigs.

The Premier said getting another major company to shift its headquarters to Adelaide built on recent successes, with OZ Minerals and Hillgrove Resources also having their head offices in SA.
Opportunity is missed by most people because it is dressed in overalls and looks like work.

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Re: SA Economy

#239 Post by Waewick » Fri Jul 15, 2016 9:14 am

hopefully a trend. we bloody well need it.

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Re: SA Economy

#240 Post by Jaymz » Sat Jul 23, 2016 12:44 pm

Re the article above. I wouldn't exactly call the relocation of Hillgrove head office to Adelaide any sort of coup.
The state govt. has just given them a $4 million loan (bail out) only months after paying their moving costs from
Sydney.

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