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SESSION THREE: INSTRUMENTS OF
GLOBALISATION
Participants:
Tim Ferrari, Liquor and Hospitality Union
Paul McAlister, Bakeries - Liquor and Hospitality
Kelly Bailey, Nestle - AMWU
Neil Hopkins, Sydney Ferries - AMWU
Raoul Wainwright, Construction, Forestry and Energy
Union
Doug Heath, Construction Forestry and Energy Union
1. General Discussion
We worked through the report
from India.
2. Response to Questions from India
(i)
Imports Automobiles, Textiles, Electronic Goods
Exports Raw Materials eg coal, minerals, agricultural goods,
manufactures local tourism expanding with increasing overseas visitors.
(ii)
- Much lower tariffs now on imports down from an average
15-30% to about 5-10%. Some incentives to export into new markets but not a huge
expenditure.
(iii)
Main public sector enterprises are power, transport,
education, hospitals, half of communications, gaols.
(iv) Somewhat limited knowledge of IMF, world Bank, SAP but
know that they:
- call for austerity measures in developing countries
- don’t get too heavy with Australia who generally toe
the line anyway
- have had extensive media coverage over the difficulties
experienced in Indonesia.
There is more knowledge in Australia of the effect of
International Ratings agencies such as Moodys who influence credit ratings eg moving
government ratings down from AAA to AA+ if they spend up too big on public projects and
have deficits thought to be too high.
- the effect of these agencies is generally invisible to the
normal worker
- however they sometimes operate very politically and have an
impact during elections of governments
- governments compete between themselves.
(v) Enormous debts in developing countries my have to be
wiped clean to allow the country to get on its feet.
3. Activity 2 - Transnational
Corporations
Governments in Australia both Federal and State in
particular try and attract foreign investment by transnational companies by:
i) Competing among themselves on the basis of the rating by
international agencies;
(ii) Substantial tax breaks or tax free periods of time;
(iii) Free or subsidised electricity;
(iv) Building of roads, ports without recouping much of the
cost from the companies who use them;
(v) Example of Trade Development Zone in Darwin Northern
Territory that subsidised start up of many companies that subsequently disappeared or had
inferior labour practices, importation of cheaper labour from South East Asia.
(vi) On occasions, the Australian Labour Unions will support
the maintenance of tariffs to protect jobs.
(vii) No payroll tax, free land.
(viii) Government funding to start up businesses which are
then sold to large corporations cheaply eg brewery in Darwin sold to Fosters.
(ix) Kodak example in Melbourne where $60 million subsidy
paid to stop them closing the plant with large job losses.
(x) Steel Plan subsidies to BHP and significant job losses
over 10 years.
(xi) Visyboard plant in the Riverina of New South Wales
obtained $60 million from the government to assist with establishment.
It was felt by the participants that any restructuring of
industry with government assistance needs to have conditions attached by government eg to
maintain a comprehensive skills base in the Williamstown dockyard restructuring and Alcoa
use of electricity that was subsidised with strings attached.
How does foreign investment benefit the country?
- jobs
- good in the short term but with the repatriation of profits
then not so good in the longer term
- assist the development of side industries
- retaining skills
- exports
It was felt by participants that increased savings of the
Australian population by increased superannuation was preferable for use in investment
than foreign investment. Some caution though in how it is invested eg the Robert Maxwell
publishing investment where he disappeared with the superannuation monies.
4. Questions for other Participating
Countries
- The Nestle participant would like to know about Nestle wages
and conditions.
- In Korea which TMC’s are involved in construction. Are
Hyundai, Fluor Daniel, Bechtel, ABB or John Holland involved.
- Do other participants know of industrial strategies at ACCOR
hotels (Novotel, IBIS, Sofitel, or Mercure).
- Is George Weston Foods present in other participating
countries.
- In government sector are maintenance workers being targeted
for privatisation.
Meeting closed 7.30pm
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