The Western Australian economic upkick

Whilst not a quantatitive analysis, I am beginning to see not only an improvement in business confidence, I am also beginning to see an upkick in recruitment and selection. After years of decline, we are finally beginning to see some economic light.

The state government had announced a gold tax in a feeble attempt to restore state finances ravaged by the GST distribution inequity but that bill failed in Parliament so the largest risk to the state economy has passed. Iron ore prices are depressed, other commodities are down but gold is hanging in there around the $1344 USD mark per ounce.

I was recently on-site assessing the competence of maintenance personnel when discussions with the maintenance supervisor almost knocked me over, they were seven personnel understaffed in their engineering workshop facing difficulties with not only current projects but future projects tendered upon.

The government is mad insofar as trying to place extra taxes above and beyong normal taxation in order to improve budget deficits. Why destroy an industry already adding to the economy? The job of government is to create the environment for stable investment with the dividends of that investment returning to inhabitants improving services from health, education and transport.

Regardless of state government inefficiency and meddling in the economy, the worst of the downturn appears to be over and the mining based powerhouse is expected to once again drive the economy. We might not return to full employment as we did before but the people displaced from their jobs might begin to gain a regular income again.