Back in 2009 Gerry Harvey had an idea. It didn’t make any economic or policy sense but sure made sense for his business, via Herald Sun:
BILLIONAIRE retailer Gerry Harvey says Australia needs a two-tier wage system to allow employers to pay foreign guest workers less than locals.
The Harvey Norman boss said Australia’s prosperity was creating a labour shortage and endangering the nation’s competitiveness.
He said a growing number of Australian manufacturers were moving overseas, where cheap labour was plentiful.
He called on the Federal Government to allow foreign workers on fixed visas to form a second tier to the labour market.
“Australia doesn’t have cheap labour. Many overseas workers would be prepared to move here for a much better life and half the money Australians earn,” he said.
“When you get unemployment down to four per cent, to three per cent, to two per cent, business can’t get the labour.
“I’ve got horse studs and it’s difficult to get staff.
“Workers would rather work in the mines where they get paid twice as much.
“Fruit- picking companies are relying on backpackers.”
Mr Harvey said both major parties needed to open the gates to migrants.
“The US can draw on a lot of cheap labour from Mexico and South America,” he said.
“People from those countries move to the US looking for a better life.
“European countries can draw on cheap labour from eastern Europe.
“The danger of being too prosperous is that it can come back to bite you – you can become too lazy and other nations work harder and overtake you.”
“What I’m saying is not politically correct.
“You won’t get politicians saying what I’m saying, but privately they know this sort of thing is a reality in the future.”
Gerry Harvey got his wish of course. Retail has casualised ever more and entry level positions are inundated with cheap foreign labour.
It did not reverse the declines in Australian competitiveness. Oh no. As he no doubt knew it would, it put a rocket under housing and household goods demand and today we see the result:
Harvey Norman’s net profit soared 29 per cent to a record $448.9 million in 2017 as Australia’s largest furniture and homewares retailer rode the last tailwinds of the housing and property booms.
The bottom line result, which exceeded the last record result of $413 million in 2007, was augmented by property revaluations of $108.5 million, more than double the $48 million of property revaluations booked in 2016.
Underlying net profit excluding properly revaluations and asset impairments rose 15.7 per cent to $390.8 million, beating consensus forecasts around $385 million.
“To say that we’re pleased by the record-breaking results we are presenting today would indeed be an understatement,” said chairman Gerry Harvey.
“The results for the year ended 30 June 2017 are truly unprecedented in our 30-year history.”
Well done, Gerry. Truly you have played us all for chumps.
