Sep 19, 2012

Go Harvey, go Harvey Norman offshore? Don’t bet on it

So Harvey Norman wants to commit commercial suicide by moving offshore? It's unlikely CEO Katie Page really meant what she said.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

So Harvey Norman wants to commit commercial suicide by moving offshore? Let it. Katie Page, the Harvey Norman CEO and wife of chairman Gerry Harvey, was quoted in reports this morning as saying:

“They [other retailers] can actually be setting up in Hong Kong — anywhere in Asia now actually, Hong Kong is the favoured place. There’s lots of advisers of going around, speaking to thousands of retailers at the moment, saying, ‘Just set up the company in Hong Kong and ship into this country’. ‘How un-Australian is that?”

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2 thoughts on “Go Harvey, go Harvey Norman offshore? Don’t bet on it

  1. seriously?

    Pretty hollow “threat” by Mrs Harvey – if she really believes it then she’s pretty dumb. If she doesn’t, then she takes us all for mugs.

    Crikey should send a reminder to the likes of Mrs Harvey and Bernie Brooks et al (and chuck in a few of the rent seekers) every few months to follow up a how their various plans to relocate offshore, shut down operations or sack workers etc is going.

  2. Simon Mansfield

    This is exactly what they should do. And so should all the major and smaller retailers. Change there shops to showrooms and set up offshore distribution and fulfillment services and bypass the GST. Well at least until the government figures out that this little freebie to the masses has a use by date on it.

    The real cost of charging GST on imported goods is pennies on the dollar. IT systems could automate the whole process and you will simply be sent a bill in the mail – just like a phone or any other utility bill.

    The original seller or shipper does not need to get involved in the process at all. Their only responsibility is to accurately complete the customs declaration details that can be easily included in the barcode data and uploaded by Fedex, UPS etc and the parcel will clear customers quickly and efficiently – and on the way through critical data will be automatically captured about the value of the parcel’s content, who it’s been shipped to and where. And a GST bill automatically generated and sent to you to pay after receiving the parcel.

    Get use to the idea of paying a little more – 10% more – for most things bought online and shipped to you here in Australia. Stop complaining about it and either accept it or be prepared for income tax to rise or local GST to rise or services to be cut or user pays to become the norm for more things.

    Five years from now no one will think twice about paying GST on imports over $20.

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