PERSPECTIVE: Why the Australian Government isn't responsible to bail out, with taxpayer money, a foreign-owned company with over $7bn debt.
Let’s be real and let’s be a business person. Virgin is 92% owned by foreign companies.
The CEO of VA and is calling on the Australian Government to pay off more than $7bn in debt. Debt that’s incurred by foreign companies.
These companies are multi-billion companies who are more than happy to take 92% of the net profit offshore. The remaining 8% goes to Australian stakeholders.
It’s similar to Ford and Holden. Ford and GM racked up so much debt and they wanted the govt to bail them out so they played the “Aussie worker” card.
Why should our tax dollars be used to bail out foreign companies who aren’t taking responsibility for their business?
At the end of the day, the Morrison Govt, I feel, is doing a sensational job. It’s not up to them or our tax dollars to bail out a 92% foreign-owned company.
Maybe if VA was managed better by these foreign companies, they wouldn’t be $7bn in debt.
Don’t get me wrong, I feel for the VA staff affected but that’s why there are #jobkeeper and #jobseeker.
Imagine if BP complained tomorrow that all their Australian sites were about to close because we’re not buying petrol. Would you be fine with a billion-dollar payout going to a British owned company?
It’s time for foreign-owned businesses operating in Australia to take responsibility for their own debt and malpractice.
It’s not OUR job and money to save VA. It’s the responsibility of the 92% to acknowledge their failures and either put their own money in or stop operating in Australia.
These companies need to stop playing Australian workers as the pawns to draw sympathy from us. For them it’s sad, yes but to use them to avoid paying debts owed, survey says no.
Administrative Assistant
4 年Keep our money in our own country. Get the other country to bail it out. Not Australia...
Australia's #1 Points Travel Experts. | Founder - iFLYflat. | Earn Points. Use Points & Fly Business.
4 年The loan was convertible into equity...
Managing Director at IMPOWRD
4 年The Government made the right decision and I am sure a company that has 5 billion in debt is using this opportunity to try and get a free debt ride at the Australian tax payers expense.
Founder | Managing Director | Creator Economy, Business Strategy
4 年I'm happy for my tax dollars to buy a stake in Virgin. As long as the investment is returned with equity, I think it's a good thing for us (Our economy could use more diverse revenue generators anyway). In the end, I'm guessing Etihad and Singapore Airlines are probably more than okay with letting Virgin Australia die... You know how this game works, even if the debts you speak of arent paid, the company eventually declares bankruptcy, close down, all the jobs are lost, we lose a great airline and the debt is most likely never paid. So... Lets own an equity stake in the company instead. This should be looked at and treated as an investment, not a bail out.