Economic clouds approaching demand courageous leadership.
December 16, 2011
By Senator Chris Back 16 December 2011
Leaders and managers are judged on their ability to read a situation and take decisive action.
If this means a reversal of policy, deferral of projects or change of direction, then courageous leaders will take that action.
Extreme circumstances call for extreme measures.
Australians and the world community are in that situation right now.
According to IMF chief Christine Legarde this morning, Europe is facing the threat of a Depression. The consequences of this for every country is dire. Read more here.
The major ratings agencies have downgraded many of the world's iconic banks in the last 24 hours.
Indeed they have downgraded the sovereign wealth of several European countries, yet again.
According to the Australian Financial Review, APRA (Australian Prudential Regulatory Authority) has directed our banks to stress test themselves against a set of radical criteria.
These include a 30% decline in housing values, 40% drop in commercial property and 12% unemployment.
Julia Gillard must act. The required actions are straightforward.
Firstly Ms Gillard must remove the threat hanging over new resources investment by the international financial community. To do this, she must immediately withdraw the carbon dioxide tax and the Mining Resource Rent tax.
Australia cannot survive being dragged down by recession or even a depression, if investment in mining, oil & gas projects dries up.
Secondly, an independent review of the Fair Work Act must be undertaken immediately to restore balance in industrial relations.
Productivity has declined in Australia at a time when it is increasing amongst our competitors. Workplace relations are the major area where declining productivity can be reversed.
Thirdly, there must be recognition that Australia's wealth was created on cheap energy.
This government is hell bent on destroying that natural advantage we have over all of our competitors.
Laws and policies aimed at destroying this advantage must be reversed or revoked without delay.
In 2008, this government had the benefit of a $70bn nest egg, business confidence and a stable industrial environment to tide Australia over the GFC. They have squandered them all. The country is now in debt to the tune of $240bn, unions are running rampant and the Cabinet is in disarray.
If ever leadership was required, it is now. If past performance is any indicator, Australia is in for tough times. It comes as no surprise when the combined years of business experience of 22 Ministers does not total 20 years.
Comments
Terence Shanahan
Monday, 19 December 2011
7:14 PM
The coalition needs to get into the ear of Costello to take the reins quickly should
there be an early election. He needs to stand again. He has the experience, knows
the system and should be parachuted into top spot should the coalition win the next
election. Labor is useless and has no one to fill the spot of treasurer. No one stands
out in the opposition ranks to fill the treasury position and nobody has had the experience of the position. Costello for PM and treasury; big job, big boots needed
and experience.
Abbott is fighting a good fight in getting ahead in the politics, but he has too much
of a tendency to make nonsensical policy on the run, eg the mothers time off
on full pay . He doesn't inspire confidence if everything goes to dust soon and
Andrew Robb may know his stuff but is a poor communicator.
If the bomb goes off, Costello is the best man standing to get into treasury even
if being PM were to be the price. Australia would need the best available under
those circumstances.
Happy Christmas
Terence Shanahan
Robert Lee
Monday, 19 December 2011
10:29 PM
Everything mentioned here is so true. 2012 looks like a time-bomb is set explode and you can see the fuse already alight!
There is only one thing that could stop this meltdown for Australia, is that the Labor Government has to be put out of power now otherwise our nations debt will balloon into catastrophic proportions and any further mismanagement by the Gillard Government of our nations affairs would just be disastrous.
We cannot wait another 2 years for an election. My thoughts are that a a few months continuous advertising campaign should be made to show all Australians the problems we are facing so that people power can then take over to wipe out this poor leadership (if you can call it that), which is the worst in Australia's history.
Patrick Purcell
Tuesday, 20 December 2011
4:28 AM
It is clear that "the lunatics are running the asylum". Australia cannot afford to be spending $2 billion per week!. Virtually everything this 'government' does makes our economic situation worse - pink bats, BER, NBN, asylum seekers & border protection, carbon tax & ETS, MMRT, industrial relations, cattle exports, etc.
There is simply no limit to the incompetence of this 'government' of no integrity.
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