Mining the earth, wrecking the local housing market

Karl FitzgeraldMultimedia1 Comment

Renegade Economists Show 463

As broadcast on the 3CR airwaves 5.30 – 6pm Wednesdays.
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Show Notes
This week we visit the world’s largest iron ore port @ Port Hedland to discuss with Arnold Carter (Treasurer – Ratepayers Association) the state of the local economy in the downturn following the mining boom. Arnold reveals some extraordinary facts about what caused possibly the largest land boom in the nation.

Related Links
BHPs staff rental subsidy

The AFR on Pilbara Perks ($):

BHP Billiton owns more than 1600 houses in the region, with 1250 in Port Hedland and South Hedland. Rio Tinto owns about 1000 homes while Woodside has 768. Fortescue Metals Group has built and owns 135 homes in Hedland and rents a further 400 houses. It plans to build more homes in 2014.

BHP, Rio, Woodside and Fortescue did not disclose the extent of subsidies paid to staff, but it is understood some workers pay just $280 a month. Some workers pay no rent.

If the market receives a housing subsidy, the scarcity of prime location, location infers that prices will be bid upwards. This ensures that such subsidy acts to benefit sellers, not the intended buyers.

Gryllis to increase production royalty.

Port Hedland’s property crash.

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One Comment on “Mining the earth, wrecking the local housing market”

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