THE Federal Government’s immigration policy is costing the retail sector $30 billion, Savills Australia national head of research Tony Crabb told the API Annual State of the Market Conference in Melbourne.
Crabb said the Government’s decision to remove 200,000 people a year from immigration intake is a key contributor to Australia’s retail sector woes.
He added that this policy had been largely ignored as a significant player and the role of the internet in the decline in retail turnover had been generally overplayed.
“This is the elephant in the room.
“No one wants to talk about it but we have slashed immigration by 200,000 people a year. That equals 70,000 houses, 100,000 cars, 70,000 washing machines, 70,000 dishwashers, and 150,000 beds. Never mind linen, crockery, cutlery, food, clothing and everything else,”
“That’s around $5 billion to furnish a house, and feed and clothe an average family per annum and that’s without adding additional retail expenditure involved in the construction of 70,000 houses, which on current values would be worth circa $400,000 each.
“No wonder retail is in the doldrums,” he added.
Crabb said the cost to the economy, and the retail sector in particular, would be ongoing.
And he predicts the construction industry will be next inline to feel the pinch.
“It will be the housing sector which will feel it next as it starts to clear the workload from the stimulus package of 2009/10,” he added.
Crabb said Australia’s ageing population means the nation would face further pressure to change its immigration policy as baby boomers continued to take retirement.
“Over the next decade there will be more people leaving the workforce than entering it. In the meantime the mining and agricultural sectors are crying out for workers and our best brains are being lured overseas.
“We need to take a comprehensive look, and with some urgency, at what is required to shore up our labour force. There are countries all over the world where well educated people are unemployed – we need them here, now,”
“If the Federal Government wants to take some action to help retailers and at the same time stimulate our two-speed economy, then they could do worse than take a serious look at this issue,” Crabb concluded.
Australian Property Journal
