Of Open Markets and Level Playing Fields

http://www.abc.net.au/unleashed/4709810.html

Ford announced it would close down its operations in Australia by the end of 2016. 

Paul Bastion, National Secretary of the AMWU lists the reasons for this decision from his point of view.

"The high dollar is at the root of these challenges, as well as the actions of our trading partners, which have undermined any level playing field in car sales."

"Government support pales in comparison with that of other nations with strong automotive industries. In per capita terms, Australia invests $US18 per annum. Compare this to the $US330 in Sweden, $US260 in the USA and $US95 in Germany."

http://www.abc.net.au/unleashed/4709208.html

Simon Cowan, research fellow at the oxymoronically named 'Center for Independent Studies' presents the neoliberal side. 

"proof that short-term, stop-gap government assistance for industry is an abject failure."

"The Australian dollar is not solely to blame for this ongoing disaster. Australian carmakers were not able to efficiently compete when the value of the Australian dollar was less than US50 cents and have relied on industry assistance for decades."

"Rather than trying to prop up carmakers and continuing the insecurity felt by workers in that industry, governments must focus on assisting workers transition to efficient industries."

"In that environment, corporate welfare for the favoured few simply cannot be justified."

I must confess an interest here. I was a member of the AMWU in the mid nineties when I worked at a factory manufacturing heat exchange units for automotive air-conditioning systems, servicing all manufacturers: Ford, Holden and Mitsubishi. This factory closed because Holden chose to cancel its contract, preferring new technology out of Japan for which we were not tooled. Rather than wait for us to tool up to produce these units it chose to import them. This is the true reflection of neo-liberal remedies. Stupid corporate leaders who make self-serving decisions in a shoot-yourself-in-the foot competitive environment where we impose uncompetitive regulation on ourselves while other countries do not. 

The un-level nature of the 'level playing field' was noted and discussed back in the nineties when Howard's tariff reductions were first being imposed. Nothing has changed.

Having said all that, which argument would you believe? The one employing emotive hitwords like 'corporate welfare' and the implied betrayal of Ford in taking our money and running, or the reasoned, fact-dense verbiage of Paul Bastion.

The point is that the neo-liberal ideology demonstrably failed, almost cataclysmicly, in the GFC, yet it is still spruiked by these blind right-wing think tanks, under the budgets of vested interests. 

The fact is that there is no level playing field anywhere, and opening ourselves to the competition employed by protected competing industries reveals our soft pink underbelly to the vultures of economic rationalism. If we go down that road we are dead meat.