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Three speed economy

Peter Smith

Aug 29 2011

5 mins

BlueScope Steel’s announcement of job losses prompted Paul Howes (AWU) to play the well-known strategic protectionist card: “we can’t rely on imported goods in our strategic sectors." He advocated putting pressure on China to allow the Yuan to float (good luck with that one) and a “sectoral support plan” including “tough local content policy”.

What is a tough local content policy? It is a policy to lessen the profitability and competitiveness of other Australian industries by having them pay more for their steel products than would otherwise be the case. Is that sensible and sustainable? Of course it isn’t. Union leaders seldom have a grasp of economics beyond the end of their nose. But Mr Howes is not wrong about everything. He said back in April that he could not support the carbon tax if it cost just one job. Though he has been noticeably shy – no prizes for guessing why – about repeating this very brave ultimatum, it was a fleeting moment of insight. It pointed (albeit…

Peter Smith

Peter Smith

Regular contributor

Peter Smith

Regular contributor

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