Japanese earthquake and the implications for WA

[Peter McMahon]

The recent earthquake is obviously a huge disaster and will have a
major impact on the Japanese economy. Japan is still no 3 in the
world, and so this will have ramifications for the world economy which
is still shaky from the global financial crisis. As a result it may
well slip back into recession. This, combined with Japan's ongoing
role as a major recipient of WA resources, including gas, and
important investor in WA resource projects, could seriously impact on
the WA economy. If the nuclear crisis continues it may even affect
development of WA uranium, currently proposed to begin in 2012.
The Barnett government's focus on the resources boom and little else
but the boom relies on the favourable conditions of the last 2 decades
continuing, especially relative global economic stability. In addition
to everything else, natural disasters can undermine global economic
stability. Of course, as global warming proceeds those disasters will
be increasingly unnatural but instead human induced.

[Janine]

Yes Peter, Im sure we will be seeing some short term disruptions in
energy/food exports, capacity issues etc. You mentioned Uranium,
which is said to be 10% down today.
Seen as Australia is an important trading partner to Japan, I am sure
that we will be at the front line in the reconstruction and recovery
to get Japan back on its feet.