When is someone in government going to call extortion, extortion?

[gordonfvckingramsay]

Never one to waste a crisis, he’s at it again.

https://www.google.com.au/amp/s/amp.smh.com.au/business/companies/qantas-mulls-moving-sydney-head-office-interstate-20200915-p55vq2.html


Qantas Group chief financial officer Vanessa Hudson said the group will look at what "incentives" state governments can provide when deciding where to base its workforce, which prompted a flood of promised support from east-coast governments.

So enter the state governments falling over themselves to throw money at Qantas at the mere suggestion that they are doing the sums on whether to move HQ.

NSW Treasurer Dominic Perrottet said the state would offer "every assistance to Qantas so they can keep as many of their employees as possible in NSW".

and,

"We think that we have a very attractive offer to make and we'll work through that to try and have as many jobs as we possibly can in our city and state," Mr Andrews said during his daily press conference in Melbourne.

I have no issue with a government fighting for jobs, especially at the moment, but if history is anything to go by, this is a grab for government money destined for private hands.

[1A_Please]

Governments who fall for this trickery should demand job guarantees that, if breached, mean all subsidies are returned. As it stands, Qantas are just playing them off a break.

[TBM-Legend]

Well Virgin and Deloittes used the same tactics to fleece the Qld Govt out of $200M...

If you buy a new car you shop around. That's not extortion...go back to school and learn English..

[SandyPalms]

Nobody will as it’s not extortion. No one is being forced to do anything.

[gordonfvckingramsay]

noun

the practice of obtaining something, especially money, through force or threats.



Threats can be implied as well as direct. QF are not known for their calls for government help being genuine.

[Section28- BE]

NSW paid $750,000 to lure Virgin to Sydneyhttps://www.abc.net.au/cm/rimage/12393432-3x2-xlarge.jpg?v=2
Virgin has agreed to keep its headquarters in Brisbane.(ABC News: Chris Gillette)

The NSW Government paid a private consulting firm $750,000 to help with its failed bid to move Virgin Australia's main office to Sydney, it has been revealed.

As Virgin Australia went into administration, a tug-of-war broke out between NSW and Queensland in order to prop up the airline.

NSW Treasury paid $750,000 to private firm Boston Consulting Group for advice on how to protect the airline and grow its presence south of the border.

Opposition MP Walt Secord said it was an extraordinary contract considering Treasury could have provided the advice.

"The NSW Treasury should have the economists and individuals who'd be able to do this work," he said.

Virgin Australia's winning bidder Bain Capital eventually agreed to keep Virgin's headquarters in Brisbane after a $200 million incentive from Queensland.

Link: https://www.abc.net.au/news/2020-09-18/sydney-morning-briefing-friday-september-18/12674074

rgds
S28- BE

[Bug Smasher Smasher]

Or you just be Rex with friends in high places and be handed $67M, no strings attached.

[Rabbitwear]

All government handouts should result in equity in the companies for the government. Nothing should be free !

[Boe787]

Its the standard company game, but if Governments choose to cough up.....equity in exchange, or job guarantees.

[cattletruck]

It's just another form of weak management searching for corporate welfare, and the outcome has a lot to do with how well the individuals in government get on with the so called "captains of industry" that are in charge.

The first time I worked in government, we had a senior executive who was extremely good at holding the Victorian car manufacturing industry in its place, an industry known for it lack of loyalty. A top bloke to boot who wasn't in it to feather his own nest, a rare breed indeed who long retired before it all finally went TU.

[Beer Baron]

Looks like someone in government has called them out:MINISTER SAYS QANTAS’ STATE BIDDING WAR ‘WORST OF FEDERALISM’ (https://australianaviation.com.au/2020/09/minister-says-qantas-state-bidding-war-worst-of-federalism/?utm_source=newsletter&utm_medium=email&utm_campaign=17092020)

“This has the potential to represent the worst of federalism and spark a wave of corporate welfare-seeking by big business if we have big companies just auctioning off their head offices to states and territories,” Birmingham said. “In the end, it’s taxpayers picking up the bill.”
Minister Birmingham said, “I’d have to urge caution from the states. This bidding war won’t create one extra job in Australia; it just shuffles jobs around Australia

[PPRuNeUser0198]

This is what will happen - NSW will provide QF with an incentive to stay in NSW and they will. VIC will provide JQ (via QF) an incentive to stay in VIC and they will. Everyone wins - no one moves.

[601]

Everyone wins - no one moves.

And the bunny taxpayer just gave a tax free subsidy to QF and JQ for what benefit?

[PPRuNeUser0198]

To boost their cash positions. When I say 'everybody wins' - I refer to QF/JQ and the state government belief system that they are 'keeping jobs in their state'. It is disgusting that taxpayer money was given to VA to keep their HQ in BNE.

[unobtanium]

Plenty of cheap office space in Logan.

[nonsense]

And here was me thinking this might be about airlines repeatedly bumping economy class ticket holders from flights in order to use more expensive seats to fill their quarantine capped capacity. Sure you can fly home to Australia, if you're prepared to pay for first class...

[hotnhigh]

Can we stop calling it Qantas and refer to what it is....AJ pty Ltd.
AJ pty Ltd will clearly do anything to get cash and the fools in government will oblige. AJ pty Ltd wants to be seen as the good corporate citizen And the ultimate leader. Suggesting and advising the message that everyone in head office, heavy maintenance or anywhere else in the group, may be relocating via media channels would Have to be one of the most heartless and cruel acts in the current climate.....oh wait, hang on, aj pty Ltd just did that.

[Sunfish]

The benefit to the State government these days is just the payroll tax and bragging rights for politicians about how many jobs they secured. The jobs figure relies on “the multiplier effect” - one “real” job supports about eight service industry jobs.

I remember writing a lot of ministerial letters when this game was being played during the Kennett years. usually there was no sale and I would write something like : “We understand that your business location must depend solely on your own commercial considerations” and fob them off with a telling of how great we were even though unfortunately we were not in a position to provide anything extra apart from our wonderful location, etc., etc. Please keep in touch with our Mr. Sunfish if we can help with any other matter.

[Redpanda]

If you want extortion, come to Victoria, and 'interact' with the 'Police'....
They are currently writing the book on Mobile Extortion.

[TBM-Legend]

Plenty of cheap office space in Logan.


There is! They are now south of the river and moved in with Flight Centre on Sth Bank...

[Derfred]

The benefit to the State government these days is just the payroll tax and bragging rights for politicians about how many jobs they secured. The jobs figure relies on “the multiplier effect” - one “real” job supports about eight service industry jobs.

I remember writing a lot of ministerial letters when this game was being played during the Kennett years. usually there was no sale and I would write something like : “We understand that your business location must depend solely on your own commercial considerations” and fob them off with a telling of how great we were even though unfortunately we were not in a position to provide anything extra apart from our wonderful location, etc., etc. Please keep in touch with our Mr. Sunfish if we can help with any other matter.

My memory is vague but I’m pretty sure Kennett had the cheque book out a few times. Wasn’t the Formula 1 previously in Adelaide?