Victa heads overseas

June 29, 2008, 3:42pm,  156 views

Ownership of the 56-year old Victa mower brand will move overseas after its sale to a US-based company for $23 million.

Is this something Australians should be worried about? Many of our assets are now owned offshore.

I have mixed feelings. We live in a global economy and Australian companies also own businesses overseas.

I’m concerned however that we’ve allowed manufacturing industries to decline. Mainly it’s because our labor costs are too high.

In the case of Victa, mowers will continue to be assembled in its Moorebank plant in Sydney.

So on balance, I don’t get too hung up on ownership. Local production and local jobs are more important than retaining profits locally.