Flood of foreign investment into Australia continues

Vanguard August 2012 p. 10
Duncan B.

Overseas cash continues to flow into Australia despite the higher Australian dollar, according to a recent report by world-wide real estate company Colliers International.

During the last six months, more than $4 billion worth of property was bought with overseas capital, up from $3.8 billion in the first six months of last year. Large portfolio sales totalling $2.38 billion accounted for 59% of investment, up from$1.8 billion last year.

In the first half of 2012, overseas investments accounted for about half of all sales of assets valued above $30 million. In total, 58 assets valued at $2.8 billion were bought by overseas interests in the first half of 2012. Office blocks and hotels are among the most desired investments. $1.7 billion of off-shore capital was invested in NSW in the first half of the year. 47% went into hotels and a further 44% into offices. Office blocks in Victoria attracted 17% of off-shore investments into Australia in the first half of the year. Office asset transactions made up 78% of the foreign investment in Victoria, with hotels accounting for a further 20% ($487 and $124 million respectively)

Canadian interests account for 19% of all foreign property transactions, with about $750 million of investments made. The Canadian Public Sector Pension Investment Fund is a major investor, and is seeking to take a stake in the $6 billion Barangaroo South redevelopment project in Sydney.

Foreign investment in Australian agricultural land is also continuing unabated. A spokesman for Colliers International said “Australian agricultural land is quickly moving to the top of investors’ wish-list. It’s about food security, portfolio diversification and high net returns.”

More than $2 billion in equity commitments has been raised and another $2.5 billion is being raised for investment in agricultural land. Large scale dry and irrigated farming country and large high-rainfall grazing holdings are the most sought after, with opportunities also in forestry, wine and vineyards. This is coming at a time when, according to the Bureau of Statistics, the total value of Australia’s rural land has decreased for the first time in 20 years. Rural land was valued at $264.3 billion in June last year, dropping 12% on 2010.

13th National Congress Resolution on the Trans Pacific Partnership Agreement

Vanguard August 2012 p. 9

The proposed Trans-Pacific Partnership Agreement is all about an unequal partnership between countries in the Asia-Pacific region and the dominant power, the United States.

It is all about facilitating the penetration of powerful US corporations into markets across the region. They seek to do this by sweeping aside local laws and protections that benefit the people, claiming that these are a restriction on “free trade” and should not apply to their investments and activities.

The TPPA will be used to overturn Australia’s domestic laws on foreign investment, quarantine, medical and education standards, environmental protection, intellectual property rights, food labelling, agriculture and food production, cigarette advertising, Australian content on TV, and many other matters that benefit the people. Also in their sights are workplace laws, such as the already limited rights of workers and unions to take collective action over wages, working conditions and safety. Local art and culture will be swamped with imported US commercial culture, while the costs of downloading film, video and music will increase greatly.

US global banks, pharmaceutical monopolies, agribusinesses and multinational corporations want the TPPA to be a sharp instrument for expansion of US imperialist economic and political interests. At a time when US imperialism is using the TPPA to strengthen its grip on the Australian economy, it is moving to preserve its domination of the region by basing troops in Australia and expanding its military profile.

Australia has a weak and subservient government that trails along behind every US policy position and initiative. The Gillard government has already virtually committed to signing the TPPA when negotiations are completed in August this year.

Resolution

Fair Trade between countries must be based on mutual benefit and mutual respect, not imperialist domination.

The CPA (M-L) supports all struggles of the people to expose and reject the TPPA, as it betrays the interests of the Australian people and the interests of the people in the Asia-Pacific region.

Greece: Statement from the KOE

Vanguard August 2012 p.10

The following is a Statement issued by the Communist Organisation of Greece (KOE) shortly after the election of 17 June 2012

As we have already noted on a number of occasions, a crucial aspect of the recent political period in Greece is the radicalism and the new mass movement emerging among the people. In both elections, there was a significant people's movement that managed to terrorize "yesterday's rulers."

The elections of 17 June were also a difficult battle under highly polarized conditions. On the one hand, popular power was mainly expressed in the form of the Coalition of Radical Left (SYRIZA) itself. On the other hand, the right wing New Democracy represented a pro-Memorandum, pro-Troika axis with strong anti-left and far-right characteristics. The old dominant forces aimed to strike the people's movement, stop SYRIZA and curb the overall morale of the Greek people. All key international and European forces of capital rallied around these goals, along with the pro-austerity domestic forces.

In these circumstances, we must recall that SYRIZA earned only 4.6% of ballots cast and 315,000 votes in 2009. This jumped to 17% and 1,060,000 votes in May 2012, then 27% and 1,655,000 votes in June 2012. Such a result was inconceivable even a few months ago. It demonstrates a tremendous shift in the consciousness of Greek society. It reflects the steps taken by the popular movement within two years and shows a convergence of popular power with the Left. In other words, SYRIZA finally succeeded to articulate the intense search of broad masses for a way out of the crisis, as well as their rejection of the bankrupt political system.

The results of the two recent elections, which brought the impressive collapse of all the pro-Memoranda parties (PASOK, New Democracy, LAOS, Democratic Alliance) compared to their score in the 2009 elections, and the fact that most of the votes that they obtained was based on their pre-electoral promises for "renegotiation" of the agreements with the Troika, lead to one conclusion: The policy of the Memoranda and the regime imposed by the Troika are delegitimized in the conscience of the Greek people. And this fact constitutes the major problem of the once mighty bourgeois parties. Nobody can ignore this reality; nobody can govern pretending that this policy is "approved" by the Greek people.

Despite all this, New Democracy came in first place by a small margin. This party was a major pole for pro-austerity forces of the Right, sculpting a camp of fear while unleashing slandering lies against SYRIZA and threatening the masses with an immediate catastrophe in case they "dare" to vote for SYRIZA. New Democracy attempted to hide its program, that is, fundamental support for the Memoranda and the Troika, while speaking of a "renegotiation" of the austerity measures. All this talk of "renegotiation" was, however, forgotten by the New Democracy leader Antonis Samaras during his very first statement on the night of the election. This new government will represent Euro-slavery and destruction. Such a government can offer nothing other than poverty, misery and repression, with the assistance of the fascist "Golden Dawn".

The entire political map of Greece has changed [following these elections]. SYRIZA is clearly the big winner. The system of domination of the two once mighty bourgeois parties and their alternation in government has ceased to exist. PASOK is nearly finished and the pro-austerity bloc is weak, despite international support. Certain bipolarity has developed based on the social polarization created by the Memoranda and the agreements with the Troika. There are also huge upheavals on the Left, as some left parties (KKE, ANTARSYA, etc.) paid a heavy price on 17 June for pretending to ignore the importance of social conflict and preferring to hide behind their "pure truth". Only by understanding the new situation and responding to the current need for a concrete front, however, would one be able to contribute to the efforts of the people to escape from their chains. SYRIZA expressed largely one pole of this conflict, while a smaller portion was expressed by the "Independent Greeks." The fascist right made inroads on the basis of a general questioning of politics, corruption, a selling out of the country, abandonment of "national assets" and of course taking full advantage of the immigration question. All this, of course, from a formation (i.e., "Golden Dawn") that represents the long arm of the domestic terrorist system and international blackmail.

There are also other political dimensions. The people asked for the Left to change, to become a force for the overthrow of the political system. The Left has indeed changed, but not as much as would be necessary for an even greater social change. This would require an even greater intensity of frontal characteristics and a separation from the old political system.

Popular radicalism has been diverted in various directions. There is a tremendous rage among the people, a desire to tear down everything. This is sometimes manifest in the departure from one political party in order to simply try another. The people find no easy answers. Nevertheless, there is gravitation around SYRIZA. It has peaked and should be given orientation.

The old political system marginally survived and proceeded to enable the formation of a new government. Survival of the old political system is now enabled by certain cornerstones. First, there is the participation of the bankrupt PASOK and its "big business" supporters and others. Second, there is the participation of the "Democratic Left", which before the 17 June elections had stated that it would not be involved in such a government. The "Democratic Left" discovered the proposal of "disengagement" from the memorandum before the 17 June elections, in order to finally enable the formation of a government with PASOK and New Democracy. Why was such a government not formed after the 6 May election since New Democracy, PASOK and the Democratic Left already could form then a parliamentary majority? Why did they consent to a second round of elections while hypocritically cursing the June election as a disaster for the economy and the society? It is because they wanted to demonstrate [to their masters] that they are attempting to compel SYRIZA into a pro-austerity government, although they also knew that this was Midsummer Night's Dream.

Those who supposedly care about national salvation proceeded to a second election only to change the balance of power between the parties, to constrain the people's energy and to exercise huge pressure on SYRIZA. Nevertheless, they were unsuccessful in their attempt, and today they have formed a government counterfeiting the popular anti-austerity majority. The power of the new government is based on foreign meddling; the arrangement is fragile, an attempt to save a political system unwanted by the vast majority of the people. This especially holds in the most popular neighborhoods, among the workers and the unemployed, the youth and the productive ages of the population.

In the days following the elections, the people will gather more strength. The struggles of the past two years have imparted valuable experience.

But the massive popular movement has also produced two significant political consequences [discussed below]. Standing besides this massive popular movement will be a political force, namely SYRIZA, that showed a potential to listen to the Greek people's concerns and can contribute to a different perspective.

SYRIZA is not anymore what it was [before the elections]. Its transformation into a mass popular democratic formation of the Left is quite necessary. SYRIZA cannot remain a scheme of correlations, cannot continue as equilibrium between components and without an organized basis. The organizations and parties that form SYRIZA should be able to maintain their ideological, political and organizational autonomy, but SYRIZA can no longer remain an aggregation of the forces that have hitherto constituted the Coalition of Radical Left. The popular radical current in society must animate SYRIZA, and this cannot be done with the old methods and habits. With initiative, a large opening in society, the self-organization and a wider rallying of the masses, a new SYRIZA can be built. KOE will try to contribute in this direction.

The main task of SYRIZA today is to provide guidance to popular radicalism and a way out from the crisis. SYRIZA embodies this popular radicalism, but it is a new and higher level about which we speak. Hundreds of thousands voted for SYRIZA in order to get rid of the memoranda and of the bankrupt political system. In order to move forward, SYRIZA must assume its responsibilities. From this perspective, there is a need for a greater "accountability" of SYRIZA. This does not mean concealing its views. It means to take into account the needs, problems and anxieties of large segments of society. To respond and give answers to society, providing a way out, beyond mere slogans. This is the real challenge: Intensification of the antithesis with the Memoranda and austerity, the Troika and the political system, in a more complex and conscious antisystemic direction.

Spanish miners' struggle still going on

Vanguard August 2012 p, 11
Jim H

Here is a follow up on the Asturian miners in Spain that was reported on in the last issue of Vanguard.

That covered the ongoing general strike against the government’s intention to slash subsidies as a part of the growing austerity program to squeeze the people to pay the bankers for the economic crisis that their actions have imposed.

The militant and courageous action, including beating off police attacks, has served to highlight the need to struggle for the interests of the working class and people in general, and in doing this take on the class enemy, not only in the form of the big corporations and banks and European imperialism, but also move against the political representatives of the capitalist of this small minority.

The core issue is that the money that had been allocated by the European Union to not only keep the mines in the coal fields going in the short term, but also to create alternative industries, has been diverted by the government for other purposes.

The courage of these miners has been an inspiration that has reverberated around the world. No doubt it will play a considerable role in lifting the struggle of the working class and people

against the onslaught of their class enemy in the form of attacks on wages and conditions and the brutal austerity measures that were being announced by Prime Minister Rajoy as the miners were being attacked. The intention is to make the people pay the banks what many commentators agree will amount to around €300 billion.

It is clear that the miners are aware of their current leading role in the working class of the whole of Spain. Because of this leadership role, they enjoy overwhelming support from the

people.

After an almost 600 kilometre march, many of the miners arrived in the capital Madrid on July 10. The streets were lined with supporters, as they had been in the towns and villages along the way. When they attempted to regroup for a demonstration the next day, they

were met by riot police, who used tear gas and rubber bullets to break up the

demonstration.

Incensed by the brutality, over a million residents marched on the next day. Over the following days, the numbers increased further, and 16 July saw roads and rail lines blocked

in Madrid. By 19 July millions were taking part across the country.

The struggle continues with a range on ongoing actions. At the same time, other parts of the working class have gone on strike to defend their conditions and oppose austerity.

For example, various sections of public sector workers, including fire fighters have taken to the streets. One of their slogans is "we rescue people, not banks." Even the police joined in and took on the paramilitaries.

On 26 July, there was a 24 hour general strike, specifically against the announced tax hikes and government cuts. Protests have been seen in more than 80 cities.

All this serves to provide the opportunity to build fighting capacity and organisation on the ground, and though this lifts the struggle to a higher conscious level.

It is clear already that the majority of the people want a new people friendly direction for Spain. Increasingly this is taking the shape of the need to do away with the present capitalist system under the direction of foreign imperialism.

Down and out in Scranton

Vanguard August 2012 p. 11
Nick G

Scranton, Pennsylvania is a town on the skids. The former coal mining and steel-making city boasted a population of 143,000 in 1930, but has only 76,000 today. It’s a traditional white working class town with only 15% people of colour.

To look at its official website is to look at a lie. Its banner reads “Scranton: Pennsylvania’s Progressive City” and tells business investors that “the future is here in Scranton”. It quotes Money magazine as ranking Scranton as “one of the 10 fastest growing real estate markets in the Country”; Forbes ranks it at 30^th “as one of America’s fastest recovering cities”. Which just goes to show that the production of snake oil hasn’t suffered at all in the Global Financial Crisis.

When Scranton finished writing cheques for its public employees on July 6 it was left with $5000 in its coffers. That prompted the Democratic Party mayor Christopher Doherty to cut the wages of all people on the public payroll to the US minimum wage rate of $7.25 per hour (last adjusted by 70 cents in July 2009). The public employees include police, fire-fighters, and other municipal workers.

In the richest country in the world, in the country that dares impose its way of life on others at the point of the gun, measures reminiscent of the worst days of the Great Depression are being played out. For an eight hour, five-day-of-the-week employee, the minimum wage works out at about $15,000 per year!

Municipal bankruptcy is becoming a serious problem in the US.  In the weeks before the Scranton decision, three Californian cities filed for bankruptcy. California is the richest state in the richest country!

In their own country, the US imperialists fly the flag of patriotism and enlist the poor to die in their foreign wars of aggression, and the bottom line reward for all this is $7.25 an hour – if you have a job. Unless, of course, you are an employee in receipt of tips, where the legal minimum can dip to as low as $2.13 an hour in Wyoming and Utah.

This is tragic testimony to Lenin’s observation that imperialism is “a colossus with feet of clay”.

And the sooner it collapses the better!

Coles workers demand equal rights

Vanguard August 2012 p. 12
Marcus H.

Striking workers at the Coles Distribution Centre in the northern Melbourne suburb of Somerton returned to work on Tuesday July 24^th, following a near three month long Enterprise Agreement campaign, culminating in a fourteen day long period of industrial action.

Following the two week long strike, approximately 550 workers voted to accept a renewed offer from their employer, Toll Logistics, at dusk on Monday July 23^rd, 2012.

The workers, members of the National Union of Workers, were left with no option but to embark on an indefinite period of industrial action, when logistics giant Toll denied workers the right to the same conditions that other Coles workers currently have in the warehousing industry.

Back in 2005 retail giant, the Coles group, took advantage of John Howard’s WorkChoices to establish the new facility as a Greenfields site, therefore able to offer inferior wages and conditions. Although investing heavily in the new Distribution Centre, Coles made the decision to outsource its warehousing function to Toll, in order to carry no responsibility for the workers.

The National Union of Workers and its members entered into negotiations for the first Enterprise Agreement at the site, located in an industrial centre of Melbourne, in 2009. The members were hopeful of industrial action on that occasion, only to experience firsthand a filthy, underhanded tactic from Toll Holdings.

On the day of voting, Toll bussed labour hire casuals onto the site, casuals that had never been seen before. The same casuals were never seen again, they were simply shipped in en-masse and advised to accept what was on offer, in order to adversely affect the result of the ballot.

The 2012 campaign saw workers demand that they be treated equally, and receive the same entitlements that other Cole’s warehouse workers currently enjoy around Australia. ‘Equal Rights for Equal Sites’ quickly became the theme around which workers rallied. Five key claims, consisting of a decent wage increase, Rostered Days Off, Shift Allowances, site rates for casual workers, a voluntary system of working Public Holidays, and Union Rights were all ill received by the employer.

The total package was estimated to have cost around $5 million, around one third of the salary pocketed each year by Coles Chief Executive Ian McLeod, and just a small percentage of that of  Toll Holdings $295 million profit result over the financial year 2011-12.

Total lack of respect from the global company Toll presented the Somerton workers with just one option – unite and fight for, and uphold the basic rights and entitlements in the logistics industry.

Well into the period of industrial action, the NUW members voted down a further two insulting offers from the company. Meanwhile, Toll had sought a Supreme Court order to have the picket line dismantled. In defiance, the workers hoisted a Eureka Flag over the barricade of timber pallets that was in place to prevent any freight leaving or entering the site. Under the inspirational flag of stars, the workers, fighting against the might of two of the biggest corporations in the land, took the Eureka oath to ‘stand truly by each other and fight to defend our rights and liberties’ And just as the Ballarat miners stood up to tyrannical administration back in 1854, the workers at Somerton stood under the flag facing a massive Police presence.

Backing down after fourteen days in dispute, Toll presented the Somerton National Distribution Centre workers with a new, unprecedented offer. An offer which guaranteed a wage increase of over ten per cent over three years, nine rostered days off per year for day shift employees, and five for afternoon and night shift employees, site rates, allowances and conversion rights into permanency for Casual employees. The right to a voluntary system of working Public Holidays was also gained.

Union rights were a key element born out of the dispute. Union right of entry, paid training time for Delegates and meetings during company time have been delivered. Unity is Strength is more than the Unions motto; it’s the truth, as seen in this dispute. The determination of the workers to fight for what was fair and right, with widespread support from the community and other Unions, was critical in the workers crushing the hopes of both Coles and Toll, and winning a hard fought and bitter battle. It was a story of workers who stood up not just for their own gain, but for that of every warehouse worker in Australia, in order to maintain and advance the industry conditions. It was for this reason that many workers from the neighbouring Woolworths Distribution Centre stood in solidarity with their fellow NUW comrades.

The victorious workers returned through the portals of the Northern suburban warehouse on Tuesday July 24^th, knowing they will very shortly enjoy the same conditions as their Coles counterparts in other States.  They sent a clear message to Coles, that no longer will they tolerate being treated any differently to directly employed workers.

Workers condemn construction code

Vanguard August 2012 p. 12
Marcus H.

12,000 construction workers, alongside workers from other unions, and community activists, marched through the Melbourne Central Business District on Wednesday July 4, 2012 to voice their opposition to the Baillieu Liberal Government’s new Construction Code that has been introduced into Victoria.

The Construction Code Compliance Unit has been implemented to restrict right of entry for Union Officials and to have any Union logos and flags removed from construction sites.

The workers, in full voice against the latest attack on working people by Government, converged on the Victorian Trades Hall, before the contingent passed by the Eight Hour Monument and along Russell and Bourke Street. The fluoro army arrived at Parliament House to deliver a sharp message that this latest attempt in dismantling worker’s rights would not to be tolerated. The protestors marched behind a massive Eureka Flag, the symbol of ordinary people’s struggle, as they demanded Premier Baillieu to “stick the code...”

The introduction of the new construction industry watchdog comes just months after the Australian Building and Construction Commission was abolished in name only, with most of its powers remaining in Fair Work Australia’s set up.

The Victorian Compliance Unit is to be led by former ABCC Commissioner Nigel Hadgkiss, who targeted Victorian Vice-President of the CFMEU Noel Washington and South Australian rank and file member Ark Tribe. Both men refused to inform on their mates. Both men were dragged through the legal system and threatened with massive fines and gaol terms.

Maritime Union Victorian Branch Secretary Kevin Bracken, in a passionate address, urged the construction workers to remember past victories, and called on them to continue on this fine tradition of working people standing up and fighting when things aren’t right. It was the Maritime Union, who was targeted by John Howard in 1998, which led to the three month long Waterfront dispute. The class solidarity seen in this dispute will be crucial once again in crushing Baillieu’s new law.

“The Nurses stuck it right up him (Baillieu)” National Secretary of the Plumbers’ Union, Earl Setches reiterated. When it comes time to campaigning against the Government, employers and the Master Builders, “The Victorian construction worker never lets you down”  said Troy Gray, Assistant State Secretary of the Electrical Trades Union, to great applause.