How to waste 110 gold

Day 864, 08:28 • Published in Australia Australia • by infin

Hillbilly Jim has already posted an article about the Austalian Engineering Corp Bill here. He made some very valid points but I just want to expland slightly on this to demonstrate the error of dante623's logic:

The idea is for the government to establish a Q3 iron in Spain which produces iron for the weapons GFCs back home. The underlying thoery is that the government will be able to produce the iron more cheaply than by buying it on the open market. So let's deconstruct this theory.

1. The Q3 Iron GFC will have a gold start up of 110g.

2. The GFC will employ local Spanish labour and so be forced to pay market rates.

3. If the GFC pays the same labour rates as all the other iron producers in Spain then its per unit cost will be the same as the other Spanish GMs?

4. The Australian Government has just paid Admin 110g for the privelege to make iron in Spain like every other Spanish GM does. The Government's cause is no further advanced and the GFC is ripe for mismanagement due to the sheer workload of managing this fleet of GFCs.

5. In the private sector, each GM fiercly guards their companies because it is their own money at risk. It is far more likely to be fully staffed and operating at peak capacity thus producing lower per unit rates.

This new GFC will just waste 110g and does nothing to secure Australia's interests. I urge all Senators to reconsider their vote and vote "No".