capitalist wrote:I was thinking about out population woes over the weekend, espcially after reading a bit out of the rag that they had the same problem in 1935.
I'm not sure if anyone here knows, but is there any examples of states/cities that have reversed the problem SA has and even made inroads (eg going from the 5/6th biggest city to closer to 2 or 3rd)
Brisbane went from 5th to 3rd at the expense of Adelaide!
I gather the major player in getting people to move to a city is jobs which requires industry. The problem we have in SA and Australia is we are uncompetitive on a global scale in pretty much everything given our wage and tax regimes (I'm not saying they are bad, but they are an influence)
That's not actually true. Our wages being high means we're uncompetitive for labour intensive low value work, but we have a lot going for us. We've a highly educated workforce and some very good universities. Our climate is sunny, and still conducive to farming despite frequent droughts. Energy is cheap and likely to stay cheap as we switch to renewables. Our geology includes very useful minerals and rocks. And it's a nice place to live.
But with our tax regime you may have a point. Stamp duty is bad for business and should be abolished. And contrary to what the politicians say, land tax is not a problem - if it's cut, the price of land will go up, and the total cost of leasing land (including tax) will be exactly the same. In the long term we should aim for land tax to replace all non hypothecated state taxes excluding mining taxes. And though obviously we can't do it unilaterally, that should include the GST.
I also read in the newspaper that the state government is cutting its budget on the state body which try to lure investments to Adelaide which seems conter productive but I don't know if any other states have these bodies to compare them to.
Whether that's a good idea depends on whether the money is spent on things that actually make SA a better place to do business.
the premise of the post, was to try and open up alternate ways to grow the population sustainably but not need to force feed industry into the area through incentives which makes the businesses leave once the incentives stop.
Good infrastructure is what we really need. Low taxes help too.
Historically the government were very successful in reducing the cost of living so that there wasn't so much pressure on wages. That's also something that should be done, or at least attempted, even though it's a lot harder now there's no longer a supply of cheap land.
The way I was thinking is the state could take the China example, find a product or industry and own it, that is make it so large that it dominates the industry and has the bargaining power, this is a risky operation especially if that industry becomes obsolete BUT with the right R&D and forward thinking it can be avoided (just look at cigarette companies which now have many brands under their name)
That's actually a very bad strategy! Overreliance on too few firms results in the government concentrating on keeping them here rather than making the state more attractive for businesses in general. And the government's not that good at picking winners, and worse still at running businesses.
now we aren't a communist country so we can't do it on the scale that they can, I do believe the state can establish companies, which after establishing a track record could be sold to the people of SA. generally these are established on the sale of bonds which are backed by the state government, eventually turning into equity.
ISTR they intended to do something like that with Scrimber, but it never got that far.
For those who don't remember Scrimber, it was a kind of processed timber made from scrub wood. It didn't look as good as normal timber, but had the advantage of being available in longer lengths. And theoretically it was stronger. Unfortunately in practice that strength wasn't so consistent, so builders weren't interested and the company never made a profit. Aftert the State Bank collapse the government decided to stop throwing money at it.
I know, pie in the sky stuff but for the life of me, I can't think of how else to ensure the future prosperity of the state without letting them mine every square metre of the place.
Then I suggest you read
http://rtsa.com.au/assets/2009/03/inves ... 8mar09.pdf. Though it's in a Melbourne context, the situation in SA is similar in many ways. The slides are after the text (p34 and onwards).