Australian economy

Government Growth Policy is not working – an example of one Growth Area municipality struggling under the financial burden of infinite population growth. Other growth corridors are also in stress.

Cardinia Shire is a largely rural municipality about 60 km from Melbourne. A government designated corridor of population growth and housing construction has been absorbing rapid population increase since 2003. The population is predicted to double over the next 10 years. Current Council records indicate that five families per day are moving into the corridor.

The council’s annual budget document and four year plan states that its greatest challenge is “managing population growth”. More administrative staff are required so the Council must move to expensive new premises in Officer. Increased financial responsibility has been placed on local government but despite an ongoing debt level of almost $50 million and increasing the annual rates each year over the past 10 years, there is still a major lack of infrastructure and services to meet the needs of the continuous high population growth coming into the growth corridor of the municipality. The infrastructure shortfall includes public transport, roads and schools for which State government is responsible. Ratepayers are virtually being taxed via Council rates, and a further increase to 6.8% this year will be a financial burden for a lot of property owners.

Huge residential and commercial development is impacting on former good quality agricultural land, sensitive environmental landscapes and waterways.

Traffic congestion is increasing, particularly on local roads not built to cope with the current volume flowing off the freeway. During morning and evening peak times traffic is at gridlock.

There is growing evidence of social disadvantage, a local welfare support agency is dealing with constant requests for assistance with food supplies, financial counselling etc. There has been an increase in antisocial behaviour, graffiti, and more serious instances of assault, burglaries and trades area break-ins. Local police are at their limit keeping up with the level of crime.

If this is the end result of government policies of high population economic growth and increased productivity, where are the supposed benefits? This is just one example of a growth area in one State of Australia. How many others are encountering similar problems?

Encouraging people to move out to Melbourne’s fringe areas, creating car dependent and socially disadvantaged communities where there is inadequate local employment and insufficient infrastructure is just not working.

Australian people urgently need a referendum on the need to limit the annual population intake via immigration, rather than on the merits of including local government in the Australian Constitution. Let’s get the priorities right. G. Terria (Fugitive from the Growth Corridor)/em>

Editorial comment: G. Terria, your suggestion that we need to hold an annual referendum is excellent. Elections such as the forthcoming Federal elections can be used as a referendum of sorts. You can vote for candidates opposed to population growth . Two such candidates are Jill Quirk and William Bourke, who are standing for the Stable Population Party in the Senate n Victoria. You could distribute your Senate preferences according to how other candidates measure up on population and other issues of concern. Ask all candidates standing for your Lower House seat what are his/her policy towards population and immigration and vote and allocate your preferences accordingly.

Role of debt in a fool's paradise

The world graph shows Australian private debt to be proportionately higher than that in the US, Financial sector debt to be significant and Govt debt to be relatively small. Why then is so-called excessive Government debt ALL we ever hear about from the media and the growls emanating from the political bear-pit? Are they just stupid or are they trying to hide or completely deny something?

Also of morbid interest is that the UK is an economic meltdown waiting to happen. Financial debt is running at 1000% of GDP. How can that astronomical amount possibly be bailed out when it implodes? Greece and Spain are flecks of dust compared to that one.

These give a snapshot of the extremity of the national and global debt situation. Very evidently it is the biggest elephant in the global lounge-room at the moment and will only get stinkier and more broadly destructive the longer that its overwhelming presence is ignored.

Australian debt related to housing

Australian debt related to housing represents a huge part of the costs of doing business and of living. The opposition has a lot to say about the cost of a carbon tax, but that cost would be imperceptible if governments and the growth lobby stopped pushing up land and housing costs by importing whole towns worth of people into this country.

We are looking at long-term loss of spending capacity

There is a pressing need for governance to recognise the game-changing transition that is now irreversibly underway so that the best outcomes can be drawn within the very unfamiliar and difficult economic rules of this new game. We have now moved from a long build-up period of enormous credit spending and debt accumulation into a long period of debt de-leveraging and consequent loss of spending capacity. The loss will hit Individuals and thus the retail economy, and hit all levels of government and thus the entire public spending program. Public debt and Government financial capacity will be hit even harder if governments continue to bail-out wealthy financial institutions for their speculative losses.

Unfortunately a number of reasons make such bail-outs likely to occur, and particularly so if the ordinary person remains unaware of the nature of this big structural change that is underway. Its impacts will reach deeply across our entire socio-economic framework. It effectively destroys the growth model that has been employed since World War Two.

Local councillors need to educate themselves beyond State ideological feed

Local Councillors need to become aware of this so that they can pull back from a futile reliance upon property development and associated tourism to drive Shire economy. I know most do not have the mental faculty or will to do so, however some might if the material is presented in the right way. This need is especially urgent in the context of the impending construction a new Strategic Town Plan.

Greg Wood is a leader in the fight to stop inappropriate development at Rainbow Beach Queensland in a World Heritage area.http://www.inskip.org/index.html