Wednesday, July 04, 2007

When Times Are Good Why Shouldn't Rates And Utilities Go Up?

Recently, well a while ago (I've been a big too busy to blog regularly), one of the current affairs (and I use the term loosely as there is very little current about them) shows on the local telly did a report about people's anger and frustration relating increases in rates and utilities. Their argument was that as our local economy is booming at the moment, in respect to mining and construction, why the need to pay more money for water, electricity, rates etc? Shouldn't this prosperity restrict the need to raise charges?

Forgive me for not seeing the point. The boom leads to higher wages in those sectors and greater demand for people take jobs there. This puts more pressure on companies to retain their workers which will lead to higher wages. More jobs in the booming sectors means more people migrating to the state and puts pressure on housing, water and electricity. Everything costs more even if a majority of workers don't realise the benefits. We require another desalination plant due to the lower rainfall and increasing population. This costs money but shouldn't the argument be that the miners and builders pay for it? Balderdash. More electricity needs to be generated which may mean building more infrastructure. What thin air is that supposed to come out of?

Greater demand on goods and services mean that prices rise as there is more competitive to procure them. Do people not think that the mining and building industries are not paying any more for their goods and services? The price of steel, and any other products associated with metals and their manufacture, are increasing almost daily. The whole economy is pressured.

Just because a section of the workforce is doing better doesn't mean that everyone shouldn't pay their fair share for the infrastructure that they seem to take for granted. The big picture is a little different to how it is reported in the lower echelons of the media.

But then again, I'm working in the mining industry and have a particular set of blinkers on too.

1 comment:

Anonymous said...

Why because of Murphy's Law. Good luck!! Annette