Ghettoisation of Australian cities IS THE PLAN

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Ghettoisation of Australian cities is the plan. It’s quantitative peopling and it’s going swimmingly right across the Sydney’s and Melbourne’s west at astonishing speed. Via The Australian:

Demographic shifts driven by Australia’s immigration program threaten to lock Sydney’s western suburbs and parts of Melbourne into a bleak future, as low-income ethnic clusters struggle to cope with congestion and social dislocation, experts warn.

Large numbers of new arrivals who have difficulty finding work have poured into Sydney’s west, according to census-based research commissioned by The Weekend Australian.

“Uncompromisingly direct” evidence from the research confirms an exodus of affluent locals from western Sydney is occurring at an equally significant rate.

…While pressured to apologise for using the term “white flight” — first coined in the US to describe white residents leaving in ­response to inflows of African-Americans — Mr Foley said he was empathising with migrants in the west who were denied jobs and other opportunities that were taken for granted elsewhere.

…Bob Birrell, head of the Australian Population Research Institute, said evidence proved Mr Foley was right about population movements in the western suburbs, even if his choice of phrase was politically unfortunate. “It’s a real phenomenon,” Dr Birrell said.

He said cheaper housing was forcing migrants west, and prompting an outflow of residents who no longer recognised their suburb and could afford to move. The only immediate solution to “take the heat” out of ­population stress, he said, was to cut back on overseas migration.

…Dr Birrell said that, just as ­arriving migrants found their living circumstances difficult, “Anglo” locals experienced strains because sudden high concentrations of newcomers with non-English-speaking backgrounds and different cultures led to noticeable changes in the composition of schools, clubs, civic associations and shopping areas. Residents often no longer recognised their suburb, and felt uncomfortable.

…Apart from migration cutbacks, Dr Birrell said the remedy was to address accommodation shortages that had pushed up house prices and rental costs by opening more residential space, and making housing less attractive to investors. Mr Carbone said Fairfield needed more accommodation and services to cope with congestion. The other challenge was unemployment, he said. ­Migrants would get jobs if they had better language skills.

Dr Birrell is absolutely spot on. But he may as well be talking into an ether-soaked gag. There is no plan to, or desire to, fix any of it. On the contrary, it is all going exactly according to plan. Over-crowding, mass-produced and over-priced homes, flourishing land banks, crush-loaded infrastructure and weak wages are not quirks of the system, they are the system.

This is all precisely what the growth lobby/Canberra nexus wants. Special economic zones in the west of Sydney and Melbourne that provide an endless stream of wages-destroying coolies that consume mortgage debt, postage stamp houses, retail by volume and taxes for Budget repair. This delivers steady top line growth for the growth lobby corporations while squashed wages boost margins. Both occur without the need for innovation or competition while the pain of Budget repair is hidden in falling living standards.

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It’s a win-win for the public and private oligarchs who live in the virtual gated communities of the east. Their living standards thoroughly fortified against the carnage as the profits roll in.

Indeed, there are few left that even resist the plan. Nor are there many avenues to do so, thanks to the gutting of a realty-dependent media also being part of the plan. One notable exception is Adele Ferguson, Domainfax’s one woman wrecking ball, who again swung herself through the slave labour franchising plan on the weekend:

Yum! no longer owns the Pizza Hut franchised business in Australia after selling it to private equity operator Allegro in 2016. Allegro later bought another franchised pizza chain, Eagle Boys, which had collapsed after questionable strategies.

…A Federal Circuit Court case on Thursday outlined the implications when franchisees are struggling. It involved a Pizza Hut franchisee on the Gold Coast who was forced to pay a fine of $216,700 to the Fair Work Ombudsman (FWO) after admitting he had used sham contracting to underpay a worker, then tried to falsify records to cover it up.

Judge Michael Jarrett said the underpayment amounts were significant to the driver: “Partly as a result of being underpaid, he needed to borrow about $1500 from his cousin in Melbourne and about $20,000 from his father in India, which he says was culturally shameful and embarrassing. [The driver’s] evidence was that he was constantly anxious and stressed about their low bank balance and at times felt depressed and humiliated. The evidence is that [the driver] was responsible for paying all the running costs for his car that he used for all deliveries he performed for the respondents, as well as paying for replacement tyres, registration and insurance.”

The case was part of a wider investigation into Pizza Hut that found widespread non-compliance after a national audit.

The franchisee, Dong Zhao, told the court he bought into Pizza Hut in 2013 for $550,000. He said he relied on a profit and loss projection that head office gave him, which showed a projected profit range of $100,000 a year for the first six years.

Instead of making a profit, he endured losses every year, which he blamed on “Pizza Hut head office’s policy to push all its shops into a ‘price war’ by selling cheap pizzas below food cost and, in 2017, additional competition coming from a new Domino’s Pizza in the region”.

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Let’s get the causality right here. It is the availability of coolies that enabled the pizza price war in the first place. The franchise sector is the child of out-of-control unskilled migrant labour not the other way around. That, and every other price war being fought across the entire unskilled services sector (today it’s dental technicians). There is no regulating this system. It is the system. It is the plan. 

Since the 7-Eleven migrant worker scandal broke in 2015, there has been a deluge of stories about the systemic abuse of Australia’s various migrant worker programs and visa system. Here is a sordid summary of what has occurred, as documented on this site:

  • The issue culminated in 2016 when the Senate Education and Employment References Committee released a scathing report entitled A National Disgrace: The Exploitation of Temporary Work Visa Holders, which documented systemic abuses of Australia’s temporary visa system for foreign workers.
  • Mid last year, ABC’s 7.30 Report ran a disturbing expose on the modern day slavery occurring across Australia.
  • Meanwhile, Fair Work Ombudsman (FWO), Natalie James, told Fairfax in August last year that people on visas continue to be exploited at an alarming rate, particularly those with limited English-language skills. It was also revealed that foreign workers are involved in more than three-quarters of legal cases initiated by the FWO against unscrupulous employers.
  • Then The ABC reported that Australia’s horticulture industry is at the centre of yet another migrant slave scandal, according to an Australian Parliamentary Inquiry into the issue.
  • The same Parliamentary Inquiry was told by an undercover Malaysian journalist that foreign workers in Victoria were “brainwashed” and trapped in debt to keep them on farms.
  • A recent UNSW Sydney and UTS survey painted the most damning picture of all, reporting that wages theft is endemic among international students, backpackers and other temporary migrants.
  • A few months ago, Fair Work warned that most of Western Sydney had become a virtual special economic zone in which two-thirds of businesses were underpaying workers, with the worst offenders being high-migrant areas.
  • Dr Bob Birrell from the Australian Population Research Institute latest report, based on 2016 Census data, revealed that most recently arrived skilled migrants (i.e. arrived between 2011 and 2016) cannot find professional jobs, with only 24% of skilled migrants from Non-English-Speaking-Countries (who comprise 84% of the total skilled migrant intake) employed as professionals as of 2016, compared with 50% of skilled migrants from Main English-Speaking-Countries and 58% of the same aged Australian-born graduates. These results accord with a recent survey from the Bankwest Curtin Economics Centre, which found that 53% of skilled migrants in Western Australia said they are working in lower skilled jobs than before they arrived, with underemployment also rife.
  • The Australian Bureau of Statistics (ABS) latest Characteristics of Recent Migrants reportrevealed that migrants have generally worse labour market outcomes than the Australian born population, with recent migrants and temporary residents having an unemployment rate of 7.4% versus 5.4% for the Australian born population, and lower labour force participation (69.8%) than the Australian born population (70.2%).
  • ABC Radio recently highlighted the absurdity of Australia’s ‘skilled’ migration program in which skilled migrants have grown increasingly frustrated at not being able to gain work in Australia despite leaving their homelands to fill so-called ‘skills shortages’. As a result, they are now demanding that taxpayers provide government-sponsored internships to help skilled migrants gain local experience, and a chance to work in their chosen field.
  • Then there is new research from the University of Sydney documenting the complete corruption of the temporary visas system, and arguing that Australia running a “de-facto low-skilled immigration policy” (also discussed here at the ABC).
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The plan to use cheap foreign labour to kill wages has worked perfectly. It has also killed inflation and dropped interest rates, driving up house prices and allowing us to over-consume these very same services. It’s all going according to plan.

Virtually nothing has been done about it. Mass immigration of cheap unskilled labour runs unabated. The odd fine from a gutted ombudsmen or the shelved recommendations of marginalised senators does nothing to halt the plan. The truth is that there is nobody left to do anything about it. They’re all in on it. Left, Right, Green. This was perfectly embodied two weeks ago when the Migration Council chair Inness Willox argued that states protecting migrant wages was a bad idea:

Anti-business rhetoric in Victoria has reached fever-pitch, risking jobs and investment.

By parroting overly emotive unions terms such as “wage theft”, the State Government is supporting a divisive agenda that will only serve to drive employers away.

Running businesses is risky, complex and tough. The populist race to the bottom with the unions to describe wage underpayments by a tiny minority of businesses as “wage theft”, effectively labels all employers, large and small, as potential “thieves”.

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Think about that for a minute. The number one migrant lobby in the country is run by the conflicted head of the largest industry lobby group. It is in bed with all major political parties and the ACTU in a compact for higher and higher immigration.

They’re all delivering on the quantitative peopling plan.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.