Obstacles to progress: what’s wrong with Tasmania, really?

Is Tasmania at a tipping point? Over the next two weeks The Conversation, in conjunction with Griffith REVIEW and the University of Tasmania, is publishing a series of provocations. Our authors ask where does Tasmania’s future lie? Has it reached a “tipping point”, politically, economically and culturally…

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If Tasmania is broken, maybe it’s because Tasmanians have no reason to fix it. Gary Sauer-Thompson

Is Tasmania at a tipping point? Over the next two weeks The Conversation, in conjunction with Griffith REVIEW and the University of Tasmania, is publishing a series of provocations. Our authors ask where does Tasmania’s future lie? Has it reached a “tipping point”, politically, economically and culturally? Thinkers, writers and doers from Tasmania and beyond, including members of its extensive diaspora, challenge how Tasmania is seen by outsiders and illuminate how Tasmanians see themselves, down home and in the wider world.

Tasmania’s underlying problem is simple but intractable: it has developed a way of life, a mode of doing things, a demographic, a culture and associated economy, that reproduces under-achievement generation after generation.

Everyone knows the problems; they are manifest, reported day after day. The reality is that Tasmania has bred a dominant social coalition that blocks most proposals to improve. Problems and challenges are debated endlessly, with no resolution. Most discussion avoids mention of the uncomfortable truths at the source of under-performance.

Ultimately, Tasmania doesn’t change because its people actually don’t really want to. They don’t need to change because their way of life is financed by the mainland. Far from helping overcome this pattern, the nation’s resource-boom prosperity is enabling and cementing Tasmania’s under-achievement. It’s allowing the government to pay an ever-expanding proportion of the population not to work. It’s driving up wages, materials, transport, regulation, exchange rates, and other costs that make Tasmania’s traditional industries uncompetitive. And it’s allowing government to subsidise non-performing industries.

The result is that Tasmanians face little incentive or pressure to change. Unlike New Zealand, which has no rich big brother and must find ways to earn its own living, Tasmania enjoys a permanent and ongoing transfer from mainland cousins that reinforces failure.

The difficulties are most obvious in the economy. Tasmania’s unemployment rate in October 2012 stood at 7.7%, by comparison to the Australian average of 4.9% – a rate of joblessness more than a third greater. In 2012, the poor performance of the Tasmanian economy was a dominant topic in local public discussion. It felt depressed. Traditional industries, particularly forestry and energy-intensive manufacturing based on hydroelectricity were in sharp decline, while tourism and service sectors were sluggish and appeared unable to pick up the slack.

The fate of the forest-products industry was emblematic of Tasmania’s challenges. Plunging global wood chip prices, rising Australian exchange rates, wages set by booming mining industries, tightening environmental regulation, and internationally effective campaigns by environmentalists, combined to lose customers in high-paying markets such as Japan and Europe and make the industry uncompetitive in growth markets such as China. The industry collapsed as revenue dived and costs spiralled.

Clearly the forestry industry had reached a watershed, and would need to change, or perish. But the industry appeared unable, or unwilling, to change, and most Tasmanian politicians’ response was to deny the need, blame the Greens, or delay the inevitable. The industry, strenuously backed by the Liberal Party and key Labor figures in Tasmania, essentially demanded the “right” to endless public subsidies. Any serious discussion of a new future for the industry was ruled out of bounds, for fear of offering succour to the conservation lobby.

It is important to understand what it is about Tasmanian culture and society that permits such an abrogation of responsibility, a refusal to confront reality.

The evidence suggests that opportunities abound in Tasmania. Economically speaking it should be easy to create these jobs. In fact, Tasmania enjoys natural and human-created advantages that offer sufficient potential to exceed these targets. But potential does not equal achievement, of course. Tasmania’s most important development and growth opportunities are not on track to meet these goals.

All Tasmania’s main fields of opportunity are effectively blocked from realising their true potential. Growth has been curtailed so it cannot even compensate for employment losses stemming from forestry. How the blockages develop, and why they are not removed, is the important issue.

But first the opportunities. My colleagues and I at the Australian Innovation Research Centre recently prepared a report for the Commonwealth Department of Regional Development that identified six main areas of opportunity: wine, dairy, aquaculture, horticulture, mining, and tourism, especially “experiential” tourism related to wilderness and the island’s gourmet products.

Conceptually, good opportunities are those in which a community already has a demonstrated strength and path to greater capability, and which combine strong growth prospects with good wages and wealth-creation potential. It is obviously not desirable for any community to deepen reliance on sectors with low wages, low growth, and weak capabilities.

A quick review reveals that even any one of these sectors alone would offer the potential to close Tasmania’s unemployment gap, if sufficiently harnessed. If Tasmania were to increase its share of Australia’s wine production, for example, from its present 0.5% to equal its share of Australia’s population (just over 2%), that increase alone would create more than two thousand jobs. Technically, such an increase should be straightforward. Tasmania enjoys probably the best climate in Australia for high-value wine production and its wine is in strong demand.

Similarly, in the dairy industry – with arguably the nation’s best natural conditions for milk production – and horticulture, and aquaculture, production and employment could easily double.

But while opportunity is abundant, actual growth is retarded. Two obstacles hold back development across all these sectors. First, all these opportunities involve close interaction with the natural environment – demanding better use of land, water, and sunshine. But change in land use in Australia today almost always requires government approval, and in the context of bitter dispute over environmental issues, approval processes in Tasmania have become highly contested, politicised, and complex.

As a result, approvals for new projects in Tasmania are more uncertain, risky, expensive, and lengthy than elsewhere. And uncertainty, risk, expense, and length are all deterrents to new investment.

Second, all the opportunities require mutual co-dependence between growers and processors and coordinated investment: grape-growers and winemakers; dairy farms and milk dryers or cheese plants; poppy growers and pharmaceutical manufacturers; tree growers, harvesters and forest-product producers; fish farms and seafood manufacturers. Expansion in growing requires expansion of processing, and vice-versa. But with different owners and divergent interests, growing and processing participants are often unwilling to commit ahead of each other, and development-throttling standoffs ensue. Couple that with heightened suspicion between buyers and sellers, politics, and differential rates and forms of return, and what should take months, takes years; what should take years, takes decades.

These are not problems with which “market forces” can readily cope, or which private investors acting alone are like to overcome. Government needs to coordinate and facilitate development or it doesn’t happen. But in Tasmania government tends not to act and the obstacles remain.

I’ve become convinced that the underlying reason for this is that the Tasmanian community actually does not want government to overcome these obstacles – or at least, it does not want it enough to sacrifice existing amenity for those obstacles to be removed. In Tasmania, we’ve arrived at a situation in which if any interest group regards itself as disadvantaged by a development proposal – whether materially or in terms of its values – there is insufficient weight on the pro-development side to push through resistance to change.

The first source of this resistance is demographic. Only a minority of Tasmanian households derive their income from participation in the private sector, and few indeed are dependent on the portion of the private sector traded out of the state. The 2011 census revealed that over a third of Tasmanian households derived their sole or primary source of income from a Commonwealth government payment: old-age pension, disability, supporting parent, and, of course, unemployment.

While the census does not record the proportion of households that derive their income from a government job, almost another third of the Tasmanian economy was made up of public services (health, education, welfare, administration, policing) and government business enterprises. This includes everything from the ports, railroads, shipping, buses, three electricity corporations, forestry establishment, maintenance, and harvesting, gambling, horse racing, motor-accident insurance, irrigation development, and management of tourist and cultural sites.

On top of this, it is estimated that up to 10% work for a private corporation whose sole client is government: road construction, building maintenance, or outsourced government services in the welfare sector.

These numbers suggest that as little as a quarter to a third of Tasmanian households derive their livelihood from the genuine private sector. Of them perhaps a third gain their income from wholesale and retail trade and associated logistics, another third from residential and commercial construction and maintenance. The clients of both these groups depend largely on public-sector incomes, leaving only about 10% of all households making a living from the traded private sector.

Tasmania can afford this lop-sided economy only because for every dollar Tasmanians contribute to the national tax kitty, they receive back $1.58 in benefits and services.

The implication of these statistics is that only a small minority of the Tasmanian population has a direct personal stake in economic development. While most might broadly favour economic development, they will not personally benefit from it.

Not even the tax revenue that ultimately funds their government-derived income originates from Tasmania. Its security is not determined by the performance of the Tasmanian economy. Much more important is the far-away national economy, fuelled by the even-more-distant resource boom. Even without the boom, most government-backed incomes are regarded as solidly secure.

When a particular economic development is proposed and would necessitate some inconvenience or clash with values, which most ultimately do, few Tasmanians have an immediate stake in making a compromise. Little is lost personally by opposing the development or delaying its introduction. If government attempts to expedite the proposal, a large number of Tasmanians will oppose such action as improper. Instances of inconvenience mentioned by opponents of particular projects include more trucks on the road, difficulty finding parking, lights on the horizon from off-shore aquaculture developments visible from the twice-yearly-visited holiday shack, spoiled views of natural features, and, of course, environmental and humanitarian concerns.

All are real concerns. But only a population whose income is independent of the performance of its private businesses will come to privilege such concerns, no matter how minor, above the need to earn a living.

Such economic independence provides fertile ground for the widespread commitment to environmental values and Green politics displayed by the Tasmanian community. Perhaps most importantly, independence from the performance of the private economy provides a weak basis for constructing a constituency for a coherent and agreed economic development strategy.

Progress is made only if no one disagrees.

Demographics and income sources have coalesced to create a specific culture in Tasmania. More accurately, it is two cultures – one of a substantial “underclass”, the other of a smaller, comfortable, government-dependent middle class. The dark side of Tasmania’s enviable emphasis on a laid-back lifestyle is a culture of low aspiration, especially among the under-class.

A recent study undertaken by an educational foundation unearthed the startling conclusion that a large proportion of Tasmanians specified not being educated as an important aspect of a “true Tasmanian”, and even a good person. Educated people were regarded as “less Tasmanian”, and probably worse people, not the sort with whom one would want to enjoy a beer: full of themselves, stuck up, and less reliable. (In addition, some parents don’t encourage their children to become educated for fear education would make them more likely to leave the island.)

In other words, not only did education undermine many Tasmanians’ sense of identity, which they greatly valued, and place them at risk of becoming separated from their community, but education was believed to make them less-likeable people.

One upshot of this finding is that much policy aimed at encouraging young Tasmanians to become better educated was founded on an erroneous assumption: that Tasmanians would want to be better educated if only they could, and their failure to do so must be due to lack of economic means. All policies therefore aim mainly to reduce the economic burden of education.

But if, as this research suggests, the targets of these programs actually believe that education is undesirable, the real focus ought to be cultural change, which is never easy. Wages for unskilled labour, among the world’s highest, make the choice to be uneducated in Tasmania even more feasible and sustainable.

The problem of the underclass is rarely discussed in Tasmania. It’s not even identified as such. We refer to the underclass as “disadvantaged”, as though their circumstances were something imposed from outside, for which the “victims” bear no responsibility. The fact that the Tasmanian underclass is white, not an ethnic minority, helps to make it less visible. Once the issue is defined as “disadvantage”, policy tends to be directed towards providing more resources, to overcome the disadvantage.

But if the source is ultimately cultural, providing more resources risks making the underclass’s under-achieving choices more feasible. The risk is that it reinforces and reproduces the problem.

In reality, that’s what we see in Tasmania. Supporting the underclass is an industry in itself. The mayor of one town hit by the decline of the forestry industry suggested that a refugee centre could be established in his district, which would offer the benefit of attracting more welfare services and boosting the local economy.

For the middle class – in Tasmania a much smaller group than elsewhere – education was seen as desirable, but only to a point. Valued above most other concerns was a modest, comfortable lifestyle, the kind that steady government employment guarantees. The ease with which it had become possible in Tasmania to reach this income level and enjoy material security meant that there was little incentive for more education. The introduction of the goods and services tax and the wave of new tax finance provided to Tasmania had facilitated this culture by driving a mini-boom in the early 2000s as the state government added thousands of new public servants and sharply increased their wages, to reach “parity” with the mainland. Flow-on effects raised housing values and precipitated a retail-consumption spurt.

The final source of blockage and failure to take advantage of opportunity is internal division. With prosperity seen to stem largely from government largesse, development in Tasmania is often regarded as a zero-sum game. If one sector or geographic region gains something, it is seen to come at the expense of someone (or somewhere) else. Hence, all opportunities are greeted with an outbreak of conflict over who should get what, usually between the northern and southern halves of the island. The mayor of Launceston famously stated that it was more important to him that rival Hobart not be the site of any AFL games, for example, than that more were played in his own city.

Challenging this self-reproducing pattern of failure has not proven easy. Because its origins lie so deep in the culture and population mix, change can probably come only from outside. Either the national taxpayer and federal government will declare “enough” – though there’s little sign of this – or Tasmania will be altered by new arrivals seeking opportunity and a better lifestyle.

Some voices within Tasmania do argue that a government-dependent way of life is not sustainable. They believe we can’t go on and will be forced to change. But abundant government finance fuelled by the resources boom and a local demographic and culture that blocks change has rendered that untrue. The ultimate problem is not that Tasmania cannot afford its pattern of failure, but increasingly that it can.

You can read the whole series here.

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58 Comments sorted by

  1. John Newlands

    tree changer

    The fact that Tasmania does not depend heavily on coal, iron ore and water trading to some extent gives it future proofing. When these activities contract on the mainland Tasmania will have the advantage. For example food production could expand as water use tightens in the Murray Darling Basin, the problem being the cost of freight across Bass Strait.

    Measures of wellbeing such as GDP imply the more frenetic the pace the better. Alternative measures could give weight to more compact suburbs and the soothing effect of natural beauty close by. For example few Sydney residents can actually see the harbour. Everywhere in Hobart you just look up to see snow capped Mt Wellington. That has to make up for lower GDP.

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    1. Dennis Alexander

      logged in via LinkedIn

      In reply to John Newlands

      OK. First this or an article very like it recently appeared in Crikey.
      Second, Tasmania has plenty of holes in the ground that only become viable during extreme commodity booms: Zeehan; Roseberry; Queenstown; Savage River. It used to have electricity based metals processing but these were priced out of the market. There are residual populations around all of these former glories, but they generally suffer from endemic underemployment and monoskilling. There are many good and well-intentioned people…

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  2. Stephanus Cecil Barnard

    Town planner and freelance writer at Kalahariozzie

    what an insightful article. During my first visit there last year, I was struck by two things, the general friendliness of the people; and the real backwardness of the place outside the two cities. It reminded me of Zambia in the mid 1990's.
    I have to disagree with John Newlands, Tasmania is not future proof. Reading the article highlighted how dependant they are on the rest of horrible coal digging, water spilling Australia. Without big brother to the north, Tassie will be in deep trouble. As a tourism destination, it is nice but offers less for more money than NZ, and by the looks of it, any enterprise proposal will be met with resistance anyhow.
    I would prefer my tax dollar being spend on fixing real problems, not self made ones by happy lazy people.

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    1. Sean Lamb

      Science Denier

      In reply to Stephanus Cecil Barnard

      " It reminded me of Zambia in the mid 1990's. "
      Yes. a lot of visitors to Tasmania remark on the astonishing similarities

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    2. Stephanus Cecil Barnard

      Town planner and freelance writer at Kalahariozzie

      In reply to Sean Lamb

      so then you have been in Zambia? It has magnificent and diverse landscape and an astonishing richness in animal life, but in the 90's it was poor and backward. Today, it is lifting its people out of dire poverty, and not with the tax money of neighbours. Perhaps you need to swing by Zambia and see what can be done

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    3. Sean Lamb

      Science Denier

      In reply to Stephanus Cecil Barnard

      Last time I was in Zambia I had a man in uniform pointing a loaded gun saying he was going to fire if I didn't hand over my documents. It appeared to me this particular gentleman was trying to lift himself out of poverty using the money in my wallet.
      This happens a lot to caravan holiday makers coming off the ferry at Devonport.
      As I said, the similarities between the two places are astonishing.

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  3. Josephine Colahan

    Peripatetic traveller

    I've been rather amused at this series of articles about Tasmania needing an intervention.

    First came the muckraking about convicts and genocide - yes they are a factor in Tasmania's history, but surely no more than anywhere else in Australia (I am re-horrified at each Australian state each time I look at their colonial and post colonial histories - and a look at European domination since the 15th C is an unpretty experience. Jared Diamond's book 'Guns, germs and steel' is an easy although detailed…

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  4. Sean Lamb

    Science Denier

    Bash Tasmania week continues apace I see. I hoping for a geneticist to contribute an article about what to do about that extra digit
    This:
    "Tasmania can afford this lop-sided economy only because for every dollar Tasmanians contribute to the national tax kitty, they receive back $1.58 in benefits and services."
    I think refers to the GST carve up, but the GST is only about 50 billion out of total 300 billion tax revenue. Tasmania has an aging population because many young people go to the North…

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    1. Seamus Gardiner

      Citizen

      In reply to Sean Lamb

      Another point is that I am quite happy working 'on the mainland' to provide services to my ageing relatives back home in Tassy.
      This does not detract from the author's many good points about obstacles to progress in the state, but bashing Tassy because of a low and ageing population smacks of churlishness.

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    2. Sean Lamb

      Science Denier

      In reply to Seamus Gardiner

      I guess I was just a little taken aback at someone employed by the taxpayer writing a report saying too many Tasmanians are employed by government.
      The areas he identified were hardly rocket science. Maybe I could offer my services to the WA Government and tell them that iron ore mining and exports to China look promising. Or a report to the Queensland government alerting them to the enormous economic potential of tourism in Northern Queensland and the Great Barrier Reef? Perhaps the State Government might look to save money by commissioning less obvious reports.
      The areas identified were all areas were innovators and entrepreneurs have already established industries of some duration now. We don't need to identify those areas of economic activity. We need to identify new or nascent ones
      For example a company M2 has established its call centre support operation in Hobart - probably providing better jobs that seasonal grape picking.

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    3. Sean Lamb

      Science Denier

      In reply to Stephanus Cecil Barnard

      It's a shame you didn't leave your attitudes in Africa as well. You know you could probably bring your mother over here under the family reunion provisions and then you would find Seamus would happily pay his taxes to provide her with services also.
      Personally if I were South African I would be deliriously grateful to Australia for allowing me in, rather than making snide remarks about contributions

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  5. Fred Pribac

    logged in via email @internode.on.net

    Tasmania - the fish that John West Rejects.

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    1. Josephine Colahan

      Peripatetic traveller

      In reply to Fred Pribac

      ... or the fish that reject John West? Tasmania's history is full of small entrepreneurs and innovators providing technologies accepted world wide.

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    2. Fred Pribac

      logged in via email @internode.on.net

      In reply to Josephine Colahan

      Hasn't this series been interesting?

      Not so much for the insights about Tasmania but rather into the lack of rigour and myopic opinion that some of our highest ranking academics are prepared to put into writing on these pages.

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    3. Josephine Colahan

      Peripatetic traveller

      In reply to Fred Pribac

      This series has been very interesting! But the academics are doing their job - philosophers philosophise about the state of the nation as it occurs after all. It just sounds ridiculous if you have the knowledge and hear somebody stating the obvious in such a pompous manner!

      Also very interesting is that the responses bear out some of the points Jonathan West makes! But as Pat Moore - gardener - comments below: we still live in a society rather than an economy, and we have the economic base to do very well if (as some suggest) they leave us alone, cut off the welfare tap and let us decide if we want to join the developed world.

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  6. Les McNamara

    Researcher

    "My colleagues and I at the Australian Innovation Research Centre recently prepared a report for the Commonwealth Department of Regional Development that identified six main areas of opportunity: wine, dairy, aquaculture, horticulture, mining, and tourism, especially “experiential” tourism related to wilderness and the island’s gourmet products."

    Of course, in each of these areas Tasmania will be competing with New Zealand where these industries are already thriving. New Zealand wages are 30% lower and the exchange rate also favours kiwi exporters and tourism operators. And New Zealand looks better on travel brochures. Tough gig.

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    1. Josephine Colahan

      Peripatetic traveller

      In reply to Les McNamara

      ... the AANZFTA ... if governments are willing to increase the competition to their own national industries, they can then not complain when those industries slump and out of work employees go on welfare.

      There is glib talk about competition increasing production efficiency, but in the long term global corporations run the show and governments must pick up the pieces for the citizens they have impoverished.
      .

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  7. Carol Chenco

    Carol Chenco is a Friend of The Conversation.

    Research Officer

    Well as a Victorian, I am happy to contribute my taxes to Tasmania. I love the place because of the quiet pace of life, the beautiful environment, the appreciation of history resulting in beautiful architecture, and, the amazing variety of food and drink on offer. I regard Tasmania as a 'getaway' from the hectic pace of life in cities on the mainland. Please don't change Tasmania!

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    1. Josephine Colahan

      Peripatetic traveller

      In reply to Carol Chenco

      Thanks for contributing your disposable income to the entrepreneurs of Tasmania, Carol.

      Perhaps you would also consider the recommendations of the Gonski report and encourage Federal Government to apply them. Education is a right for those who can use it, and a right of choice in any community. It won't be taken up with any enthusiasm if a degraded system is all that's offered.

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  8. Andrey Panevin

    University Student

    A major factor that contributes to both the image and the reality of Tasmania and its development are the 29 councils that are spread across this small state, bureaucracy rules the map and indecision follows (http://www.lgat.tas.gov.au/webdata/resources/files/Local_Govt_Area_A4_map1.pdf). Many argue that each council tends to the needs of differing areas (especially those that are more remote) but I can't help but think that if the councils were fewer and more centralised then more efficient and…

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  9. Josephine Colahan

    Peripatetic traveller

    One difference between Tasmania and other Australian states is that young Tasmanians leave the state to find employment in the bigger Australian cities. However, this trend is occurring in all states in that young people from rural Australia are moving to the major cities - often the whole family moves to support their young.

    While young Tasmanians are accepting Year 10 as a valid point to finish their education it's worth a look at the Gonski recommendations and ask why government is stalling on this. Education is a right for those who can use it, and a right of choice in any community. It won't be taken up with any enthusiasm if a degraded system is all that's offered.

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    1. John Harland

      bicycle technician

      In reply to Josephine Colahan

      I am puzzled at what is seen to be wrong with young people seeking employment in their local community. Seems a good path to maintaining viable communities when small communities elsewhere in Australia are being sucked dry by the drain of talent to our bloated capital cities.

      It is also unclear to me why Year 10 is scorned as inadequate education. That, surely, has more to do with the quality of education than the number of years spent restrained in school.

      We might even be better-off as a…

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    2. Patrick Stokes

      Lecturer in Philosophy at Deakin University

      In reply to John Harland

      "In that we accept that the avereage worker will have To be completely retrained at least three times through their working life, why are we still trying to cram so much education and training in before people can even enter the workforce?" - Maybe because education is a good in itself, not merely training for the workforce?

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    3. Robert McDougall

      Small Business Owner

      In reply to Patrick Stokes

      depends entirely if the individual has the stomache to endure the education "system". Education happens every day, it's how we learn. But formalised education is an entirely different kettle of fishies.

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    4. Josephine Colahan

      Peripatetic traveller

      In reply to John Harland

      I like the way you're thinking, John Harland. The value of an education is the understanding of the philosophical, political and economic systems in which one lives and the understanding of alternative systems. That's a good classical education.

      Today, most education is geared to 'skilling' students into employment - either as the 'labour' or as the 'entrepreneur' in the four functions of capitalism (the other two being land and capital).

      There is nothing inherently wrong with Capitalism…

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    5. John Holmes

      Agronomist - semi retired consultant

      In reply to Josephine Colahan

      In reply to Josephine Colahan

      'The second problem is that corporations have weaselled into the state of being regarded as individuals..'

      Its just that the big corporations are the heirs of Alexander the Great et al - finance your lifestyle by asset striping any concentration of wealth will do - temples etc of other lands and moving on. Now we have transnationals asset stripping of other corporations, nation states via debt, as well as the locals peoples. Not much has changed.

      One result is seen in the Caste system of India.

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    6. John Harland

      bicycle technician

      In reply to Patrick Stokes

      I have seen many young people whose education only began in earnest once they left school. In many cases it was their academic education that started when they came back to the same school, studying the same subjects with enthusiasm because they had a context to that learning.

      Fulltime schooling is a deeply inefficeint means of educating many people.

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  10. Stephen John Ralph

    carer

    Jonathan

    As you (AIRC) have only recently identified the problems you outline, one question is why has it taken academics, universities, schools, colleges and no doubt government (advised by a public service and many others) to reach your conclusions.

    I take it these problems have been percolating for years if not decades. Shouldn't the University of Tasmania and a host of other organisations be at the forefront of change and innovation, and EDUCATION.

    Better late than never isn't a good answer, so WHY has it taken so long to get this far.......

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  11. Chris Sanderson

    CEO

    Well, we live near Byron Bay, NSW. That’s because we like the climate, lots of rain, good soil and above all comfortable temperatures all the year round. Tassie has always been too cold for me.

    But that’s all going to change.

    For someone like me, who thinks a lot about climate change and studies its maps of the future, Tasmania is looking progressively more attractive.

    It is forecast to be about the only place in Australia that will not be getting uncomfortably hot as the mainland adds…

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    1. Stephanus Cecil Barnard

      Town planner and freelance writer at Kalahariozzie

      In reply to Chris Sanderson

      so are you really scare of the change? I'll swap you with my property here in on the hills in Central Queensland. But then Siberia, Greenland and Mongolia also looks more attractive, if you can stomach that amount of compulsory vodka.

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  12. John Holmes

    Agronomist - semi retired consultant

    Good summary.

    It will be interesting to hear Colin Barnett's next pitch about WA not getting its fair share of the tax pool.

    One area similar to the problems of development in the Far North and NW of Australia is the issue of expensive transport, both for inports and exports. Better solutions need to be explored.

    Also re agriculture, the issues of competing with NZ / Southern Australian with the supermarket duopoly. Eg you loose your frozen pea market if you are under cut by 2.5…

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  13. Robert McDougall

    Small Business Owner

    perhaps the answer for tasmania is to focus on local domestic economic activity and forget the rest of the world.

    i.e. small business local community focussed as opposed to multinational corporate shopfronts?

    Tasmania has so much going for it in terms of real stuff, as opposed to "imaginary" stuff that the rest of Australia gets caught up in.

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  14. Pat Moore

    gardener

    Judgemental words like "underclass", "low aspirational", "underachieving" coming from a former Associate Professor of the Harvard Graduate School of Business Administration is perhaps indicative of a cultural clash, a major disjuncture of values? Like landing on the moon? It's all relative....little island down under Downunder Vs global empire? Iceburg VsTitanic?

    The Australian Innovation Research Centre at the University of Hobart is perhaps using an economic rationalist lens to analyse…

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  15. Trevor McGrath

    Pharmacist Hobby:climatology

    The way I seem to look at all this in the world of economics, being part of it is one thing, we should only join for our own advantage, not to be economically sodomised by others. Tasmania like the rest of Australia would not starve or go unhoused or unclothed if the rest of the world put a total blockade around Australia or Tasmania. So why all this race to the bottom stuff, we should do things the Australian way and tell the rest of the world to do whatever it is they want to do.... By the way…

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    1. Stephanus Cecil Barnard

      Town planner and freelance writer at Kalahariozzie

      In reply to Trevor McGrath

      mm Trev... unless you have been / worked there you would not know. There are more refugees in Zambia than in Australia, and there they do not need boats to reach the shores. Go check your Google Map and see which countries surround it. Although not the economic miracle Australia is, it has changed dramatically since the 1980's, mostly for the better, and it is fast reclaiming its colonial title of the food basket of Southern Africa. (Oh but colonial is a swearword... i apologise for cursing…

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  16. Cornelis Wegman

    Architect

    Thank you Jonathan West - you have hit the nail on the head about development. Every time a proposal is foreshadowed, dozens of well meaning citizens emerge from the woodwork to explain that it won't work. This happens even before we get any details! Potential developers are frustrated by complicated requirements, and finally, when they have complied with all the rules, changes in conditions force them to reapply and start all over again. Are we all thinking of boats?

    We have a culture that says 'NO - maybe' instead of 'YES - but'. We must approach potential developments from a positive, instead of negative, perspective. Tasmania is beautiful but is that enough?

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    1. Josephine Colahan

      Peripatetic traveller

      In reply to Cornelis Wegman

      (Once upon a time, many moons ago, the 'Fertile Crescent' was fertile ...)

      The potential developments that I will approach positively are those that involve Tasmanians for a few generations rather than a few months, enhance the natural environment, and make a contribution to other Australians. I haven't noticed many of those lately other than those ideas appropriated by Jonathan West ...

      Yes, it is enough to be beautiful - if fact it's necessary to be beautiful if we want 'experiential' tourists…

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  17. Stephen John Ralph

    carer

    Yes Cornelis it just may be enough.

    Do you want to tear down or dig up beauty for some temporary gain...oil will run out, minerals will be all dug out,
    and so forth. But hopefully "beauty" will remain.

    If industry isn't happy with Tasmania - move out. If developers get frustrated there appear to be lots of shonky opportunities in NSW, hell even Victoria the way the Libs are going - just email Matthew Guy.

    What is it about progress and economics that sees a natural path to destruction, only to move onto the next big thing. The West and it's corporations have left a tragic tale of destruction and environmental mayhem in too many third world countries.

    Couldn't we just leave Tasmania alone.

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    1. Stephanus Cecil Barnard

      Town planner and freelance writer at Kalahariozzie

      In reply to Stephen John Ralph

      leave it alone but pump tax money into it? No, either join the dance, or go home without a bag of lollies from the Main land party. Just look at NZ, they did not stuff it up, but they get along pretty fine without petty opposition to every and anything.
      It seems Tasmania wants the loot but not contribute to it.

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  18. Stephen John Ralph

    carer

    So you'd like to wreck Tassie just like the Great Barrier Reef will be destroyed by Queensland.

    When Qld becomes too hot, too flood prone and too hurricane prone where will you move?

    You might not be safe up in them thar hills.

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  19. Cornelis Wegman

    Architect

    Why is it that development is, by many, always assumed to be extreme and destructive? Is it not possible to strike a balance between conservation and development? No, beauty is not enough unless you are content to have others pay for the luxury of making an omelette without breaking the eggs!

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  20. Stephen John Ralph

    carer

    Because Cornelis "development" these days is synonymous with greed and the desire to squeeze the last juice out of the orange so no-one else can have some.

    Sustained development would be great if only the "sustained" part could be adhered to. Take for example the potential for Melbourne's green wedges to be exploited by developers under the sanctions of government.

    Sooner or later enough is enough - the world is increasingly becomong worse and worser (!) for developmen's sake. Let's wake up and smell the roses...not the manure.

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    1. Cornelis Wegman

      Architect

      In reply to Stephen John Ralph

      I think that you are being too cynical. Private enterprises are usually driven by profit but an important role of government is to restrain their enthusiasm and provide a balance. We have a weak government, unintelligent ministers in key portfolios, and a small town cycophantic attitude to famous names and people with deep pockets. Our government's policies are driven by populist responses rather than sensible debate. As a result, the restraints don't work and responses are driven by those who make the most noise, or have the deepest pockets, or are likely to assist someone's re-election.

      I love smelling the roses - especially those that I have paid for!

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    2. Stephanus Cecil Barnard

      Town planner and freelance writer at Kalahariozzie

      In reply to Cornelis Wegman

      This is an extremely insightful debate. I just wonder how many of the contributors here have actually tried to start a business in Tasmania. I am not talking about uranium mining or harvesting of ancient forests, no, I am talking about starting a boutique hotel / small guesthouse. Did you try to wade through the planning system to get an approval for a non destructive non environmentally degrading land use, such as this on a rural property close to Launceston (by example)?

      Well, a German female…

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    3. Trevor S

      Jack of all Trades

      In reply to Stephanus Cecil Barnard

      "Perhaps Tasmanians need to stare at their own navels and then discover why it is the way it is. Sadly it is becoming so for Australia as well."

      Amen, it's why I invested in Cambodia instead of Australia.

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  21. Robin Verhoeff

    logged in via Facebook

    I personally think that the federal government needs to work on weaning the state off of the mainland's financial backing. It is inevitable that the only way to save money will be to spend money; that said, not by giving out more handouts and welfare benefits, but by manually intervening and setting up industries that Tasmanians have failed to do themselves.

    The agricultural industries need to be industrialised rather than focusing on boutique industries which only appeal to a specialised taste…

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    1. John Holmes

      Agronomist - semi retired consultant

      In reply to Robin Verhoeff

      Robin Verhoeff :

      When I first met my then to be Mother in Law, I was struck by the huge food reserves held in the pantry. This, I was told was due in part to the problems of variable shipping into the State from the Mainland. ( I knew I was accepted when on returning there were always supplies of raspberries etc in the freezer held for me and occasionally cooked a mutton bird for me her way.)

      My observations since then, including a period living in Tas, is that it is still a crucial…

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    2. Josephine Colahan

      Peripatetic traveller

      In reply to Robin Verhoeff

      Robin, you do have a lot of ideas!

      Producing for the masses is what Tasmanians have done since agriculture got off the ground in colonial times - a variety of government interventions have taken this living from many Tasmanian families of whom you are now castigating. Many of them are turning their vision to the boutique market as an alternative. Others have left our rural Tasmania - just as are thousands of other Australians - and are flocking to the 'megacities' from where global corporations…

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    3. John Harland

      bicycle technician

      In reply to Robin Verhoeff

      A very entertaining pisstake on Neocon thinking, Robin. More economic direction than a Marxist-Leninist and more dictatoship in the interests of Capital tthan most fascists would reckon to be possible.

      For some people, Tasmania is no more than an economic opportunity, awaiting only a whole lot of government intervention, economic panning and subsidisation to make possible the Natural Course of Capitalism.

      For people who live there, boutique businesses may be a great deal more attractive than…

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  22. Bill Dodd

    logged in via Facebook

    So the problem is cultural and, according to Mr West, can be fixed through two possible ways. "Either the national taxpayer and federal government will declare “enough” – though there’s little sign of this – or Tasmania will be altered by new arrivals seeking opportunity and a better lifestyle."

    I am wondering whether the situation might be improved through the second option, by an acceleration of the number of people coming to Tasmania who have a more enterprising spirit than the current demographic. Perhaps Tasmania could provide community resettlement and education for asylum seekers. Or maybe there is a need for younger people from the mainland to come to Tasmania to work.

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    1. Josephine Colahan

      Peripatetic traveller

      In reply to Bill Dodd

      Hi Bill

      I am interested in the demographic that Jonathan West uses in his article that puts 25% of the population in the 'genuine' private sector of employment. The rest - 33% on welfare of some description; 33% employed by public services and enterprises - plus another 10% working for private corporations whose sole client is government. He says: "Of them perhaps a third gain their income from wholesale and retail trade and associated logistics, another third from residential and commercial…

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  23. Catie Porteous

    logged in via email @yahoo.com.au

    Jonathon, could you please cite the educational foundation study you refer to? Sounds like interesting reading.

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  24. Gregory Lehman

    MSt Student at University of Oxford

    Interesting blog here from a colleague at Oxford reflecting on anti-intellectualism in New Zealand. Parallels with our island state? I often wonder what we might learn from New Zealand. Their economy seem to function on wine, tourism and dairy exports, yet they don't require (and haven't got access to) a massive GST subsidy. http://theaotearoaproject.wordpress.com/2013/03/27/is-new-zealand-really-anti-intellectual/#comments

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  25. Gregory Lehman

    MSt Student at University of Oxford

    Does education ‘undermine many Tasmanians’ sense of identity'. Although West's argument is predominantly an economic one, it has been read in Tasmania to point to consequences of scale and boundedness – not just in markets and monetary growth prospects, but in social aspirational horizons and imagination. Islands do not have to be archipelagic. They occur in any socio-geographic bounded existence. Remote rural communities in Australia are good examples. Or relic communities in post-industrial wastelands…

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