Peter: I think I alluded to it earlier. The fact that Holden is going to close its manufacturing plant is going to impact on those northern suburbs.
Holden is centred around a suburb called Elizabeth.
A lot of people may have heard of Elizabeth or Salisbury because they are the cheaper suburbs because they are such a long way from the city. But it won’t be the end of the world.
In South Australia going back many years, we’ve had Chrysler shut down their plant; it wasn’t the end of the world for Adelaide or South Australia. Even more recently, we had Mitsubishi shut down their plant, and it wasn’t the end of the world for Adelaide or South Australia.
Yes, it will have an impact.
It won’t be too severe, but for the next few years, I would probably ask for people who are listening to your show to keep that in mind. It’s not just the people working in Holden, but it’s all those other businesses around the area that supply stuff to Holden; they won’t be needing as many workers either.
If there is not as much work in that particular area, it’s going to slow demand for property in that area, which means property prices will slow down, and you might even find rents dropping a little bit."
Indeed, beware - a point raised here many times previously, the shuttering of an industry will impact more than just the employees of one plant.
The good news is that the reported unemployment rate in Elizabeth seems to have stabilised in Q4 2014.