Well now I am going on a tangent, true Inflation in Western Australia is going rampant, but we judge inflation on a national level and thus the Reserve Bank will judge whether rate rises happen or not and it is not all the State Government's work of the expansionary economic policy, which I will then explain why the Force are a necessary economic tool for long term growth in economic performance once the mining boom goes down and how it works in with the strategy of trying to boost tourism through hosting sporting events...which is the key reason behind the Hopman Cup, is the sort of exposure this competition gets into many markets...which is justifying the expense.
But let me first get started on the expansionary policies being implemented federally.
1 - Federal Government actively caimpainging to open up another mining industry in an already heavily heated mining market - eg Uranium. Which currently Carpenter has stated he will not allow Uranium Mining even if the policy is changed federally. This is the first linkage of expansionary policy on federal level but probably coincidentally a Carpenter Policy that is slowing growth.
2 - The tax cuts last year by the Federal Government had a huge impact on the capital of the growing wealth of the middle class in Perth, which is increasing at rapid rates and with greater wealth, for those with skills. Probably to the stage where our upper class has doubled in size in the last 5 years, with the exponential wages being delivered to people of any age wanting to work in the mining industry - tax cuts help this and the expansionary policy was used as a key reason why interest rates went up following the tax cuts.
These two factors show the Federal Government also has to take some responsibility in the sort of over-heated economy that is WA.
Now I am going to explain the issues where the state has tried to limit spending in the past year, but deliver necessary infrastructure that will try and give the economic benefit to those in regions that are not experiencing the level of boom that the mining regions and the City/Western Suburbs of Perth.
It is a two speed economy that is trying to be allieviated through social infrastructure and creating better transport link to hubs which have employment shortages.
The Mandurah Railway that had 2 billion dollars spent on it which will give people fast access into the city and allieviate the higher then the rest of the metropolitan region's unemployment. Around 5-6% and encourage those who want retail jobs to go where there is real shortages in the City and Western Suburbs.
The Peel Deviation also is necessary infrastructure as is the Fiona Stanley Hospital commitment, as is the other massive infrastructure projects to be delivered in the regional areas including the Albany Performing Arts Centre.
But the Government does try and stop the expansionary policy.
1 - It has programmed with all the increasing revenue that has come up above Budget forecasts to reduce state debt - A policy which is probably the biggest softening a government can do to an economy.
2 - It has not delivered the tax cuts demanded by the community and the influential real estate lobby...and Langoulant for the Chamber of Commerce's continual seeking of reducing stamp duty and land tax.
At the end of the day, the private industry is investing millions of dollars in construction and projects, jobs are plentiful and job shortages are hitting hard...but the State Government are not ruthlessly going on an expansionary policy, it does not help with Federal Government policy, namely the last tax cuts.
Thus now I get back to you about how the Western Force need to be encouraged to remain in Perth and as part of the economic policy of increasing revenue through tourism, a long lasting economic delivery rather then this short term economic boom (one day China will not be able to keep the level of infrastructure up).
Thus the Force are an integral aspect of the State Government's policy of having maintained international coverage of their city into overseas markets. Recent statistics showed that Perth had decreased international visitors but had an increasing domestic tourism market.
The prospect is that tourism is a longer lasting economic delivery, which the Force achieves by competing in an international tournament that taps into markets of considerable interest in New Zealand, South Africa and England.
Which is unlike Aussie Rules, A-League, NBL...and the rest of the domestic competitions.
And for this reason it is in the long term interest, to keep the Force in Perth and to develop a 30,000 seat facility.
Even with the inflation in Perth spiralling out of control, through a mixture of Federal Government policy and a direct result of increasing revenue of people flying back from the mines, impacting on the growth of job opportunities as people spend their money.
Sorry for the long rant guys
an air race over the river beats the hell out of a rally through the forestry tracks for attractiveness to tourists (in particular the wife and kids, for whom being pelted with flying gravel is less pleasant than watching the pretty aeroplanes).
