“Today’s emerging two-speed economy in Australia can largely be explained by the unprecedented growth of Australia’s mining and resources sector over the last few years” Ms Vamvakinou said.
“This resources boom has created regional inequalities when it comes to the economic growth rates of different States.”
“Whilst Queensland, Western Australia and the Northern Territory continue to enjoy the economic benefits of Australia’s resources boom, with each forecasting economic growth rates at least twice the national average, regions that traditionally rely on ‘import-competing’ sectors like manufacturing, service and agricultural firms are falling behind.”
“While there are a host of other factors at play, one effect of Australia’s resources boom has been the appreciation of the Australia dollar. This has put additional pressure on our ‘import-competing’ industries, further damaging their ability to compete as import prices fall relative to local costs, and international and domestic markets are flooded with cheaper overseas exports.”
“The solution is to invest heavily in research and development, and in skilling up Australia’s workforce to make it better suited to the demands of our changing economy. This is the only way that Australia can adapt to the changing realities of the international market without sacrificing either workers wages or the standard of living that we have come to expect.”
“Traditionally, Calwell has always had a high concentration of manufacturing industries, and has thus been home to many of those who work in these industries.”
“It has also long been a predominantly working class area.”
"Many in this area don't have the necessary skills or resources needed to take advantage of the opportunities that are available in the new enterprise economy" Ms Vamvakinou said.
“Over the last decade or so, Australian manufacturing has run aground and as a result, an enormous number of jobs have been lost in the region.”
“According to the latest figures available, the average unemployment rate for all of Calwell is 7.5%, with this figure varying from 3.4% in Sunbury to 11% in Broadmeadows.”
“Broadmeadows' high unemployment rate remains deeply concerning, and is indicative of the way the Howard government has left predominantly working class areas behind.”
“Compounding this problem is the way the Howard government has shown itself to be completely one-sided when it comes to meeting the respective needs of employers and employees.”
“The bottom line is that the Howard government’s misleadingly named ‘Work Choices’ legislation drives down wages, and strips workers of their basic rights. That doesn’t make for a sustainable economy. Rather, it does enormous damage to the quality of life that Australian families enjoy.”
"The most vulnerable under this system are working class families, and those who are already disadvantaged."
“The solution is to reintroduce a system of fairness in Australia’s Industrial Relations laws, one that works for both employers and employees.”
“Another indicator of the regional imbalances caused by Australia’s two-speed economy is the way property prices have fallen in some areas, yet continue to rise in others.”
“The electorate of Calwell has experienced a drop in the median average of house prices.”
“We all know that home ownership has long been the backbone of the great Aussie dream.”
“Any fall in property prices thus becomes a catch 22 situation. On the one hand, it means that house prices are more within reach for those who have otherwise been priced out of the market, which is a good thing.”
“But for those where the equity of their home is their major investment, any fall in median house prices is a bad thing, especially when you are burdened with a massive mortgage.”
“Australian households are experiencing record levels of debt and Australian’s are spending a greater percentage of their income on mortgage repayments than ever before. Any fall in the house prices serves to remind us just how precarious the financial arrangements are for many Australian households.”
“Even those who enjoy a relatively high standard of living often find themselves vulnerable to interest rate hikes, and have felt the squeeze that the rising cost of petrol has put on their household budget” Ms Vamvakinou said.
“The federal government needs to address the regional imbalances created by Australia’s two-speed economy, by implementing measures that reflect the interests of the country as a whole.”
Contact Alex Kouttab 0417 541 465
