Colleague JL pointed out to me this stupid ban imposed by the NSW Government on the procurement of Chinese products by government agencies. The NSW government has the obligation to purchase goods and services at the cheapest possible cost. This ban disadvantages NSW taxpayers by wasting their hard-earned tax dollars and threatens Australia generally by the prospect of retaliation from China.
Australia’s most hopeless state government is digging itself yet another grave. Good riddance when these Labor incompetents are kicked out of office. The order has the endorsement of Premier Nathan Rees on the grounds that it supports Australian jobs and is naturally supported by the neanderthal trade union dummies – these destroyers probably provided the stimulus for this policy.
The ban defies basic trade theory and the principle of comparative advantage on which all rational economic discourse is based. Rather than a ban on imports a clearly superior policy would be to provide labour in industries with employment subsidies. This policy while better is clearly also sub-optimal.