Wednesday 31 December 2008

The tax harvest.

Tonight most of the Australian population will have a few drinks and stay up late to watch the fireworks as they welcome in a new year.

This new year looks like bringing with it a lot more problems than the old year delivered, and one of those problems will be an increase in the tax harvest scattered across most aspects of life.

It seems to be a rite of passage that state governments see the new year as the starting date for implementing their never ending quest for more money. From tomorrow there will be some tax increases that are hard to miss. For instance, train and bus fares will jump seven and a half percent.

The tax increases that go unnoticed are the ones that subtly add to the cost of living. All the fees that get tacked on to any matter proceeding through the courts will rise from tomorrow. All sorts of licenses - including the compulsory green slip needed to register a car - will marginally rise.

None of these are large enough to generate a public out cry - but they will take a few dollars here and there out of your pocket - and for some strange reason they never seem to tally in the published rate of inflation.

It is often called " the nickel and dime " approach.

Many will face this new year with trepidation - because job security is threatened by the financial meltdown and the extent of the world recession has yet to be determined.

We will probably all survive to greet another new year twelve months from now - but as a wise man once predicted - nothing is certain - except " death and taxes " !

Expect those taxes to inch ever upward every year when the fireworks end !

Tuesday 30 December 2008

A WIN-WIN situation !

There is no doubt that Wollongong council is guilty of a massive dereliction of duty in allowing our main sporting stadium and entertainment centres to be concentrated at the lower end of Crown street - without any attempt to provide parking.

The present meltdown may actually provide the key to unscrambling this unholy mess !

The " Gravity " proposal will not be built in the immediate future - and there is a doubt that it would be viable if the competing centre in Keira street ever eventually gets under way. That leaves the old Dwyer's site a vacant blot on the landscape.

Nobody is suggesting that parking to service Wollongong's needs should be free.

Now would be a good time for the council to be creative and provide an incentive for this to be turned into several levels of paid parking - with the space above zoned for luxury apartment living.

The incentive to attract developer interest should be a council offer to make this development rate free for a ninety nine year period.

That would be a huge attraction because rates cut deeply into the profits of any commercial venture - and that includes car parking. The same applies to choosing a dwelling in which to live - and it seems certain that freedom from future inflation increases would be a major attraction.

The opportunity to free the city of the blight of an entertainment district lacking parking is knocking on the door. It is just a matter of whether this city has the gumption and vision to seize that opportunity !

Monday 29 December 2008

Recipe for Armageddon !

The events in Gaza defy logic ! Palestinian militants fire rockets and mortars into Israel, targeting the civilian population. The Israeli defence forces hit back with air strikes that kill 280 people - and wound over double that number.

The Palestinians claim that they are fighting a war to reclaim their country. The Israelis say they are defending their civilian population from acts of war intended to promote genocide. Both attitudes have elements of truth.

Hostilities have been ongoing since 1948 - and there is every chance that in the future they may escalate to the point where nuclear weapons are used.

The arms race has changed in recent years. Israel is known to have atomic weapons. Unstable and militant Islamic nation Pakistan has developed nuclear weapons very recently - and close neighbour Iran is rumoured to be well on the way to joining the nuclear club.

The total lack of logic where religion is involved makes Armageddon a likely eventual outcome.

If the radical Palestinian elements are given a nuclear bomb there is little doubt that they would deploy it against an Israeli city - and if that happened there is no doubt that Israel would use it's nuclear weapons in defence.

Just how far such a nuclear exchange could spread would be any one's guess, but while ever hatred is measured beyond reason the unthinkable is not only possible - but inevitable.

There is no answer. No amount of negotiation and no action by other countries is going to defuse the core reason for this ongoing war.

It will be left to the writers of future history books to ponder on what might have been !

Sunday 28 December 2008

A " Dark Knight " opportunity !

A lot of people are in trouble because of what they perceived as a sure fire, money making opportunity.

In July toll company Brisconnections floated at $ 3 a share - but quickly tanked and the share price dropped to an incredible one tenth of one cent a share. Many jumped in and bought huge quantities, lured by this companies stated promise of paying a 5.95 cent dividend in November. It looked like a sure fire road to immense riches.

What few bothered to find out was the fine print. Brisconnections floated on the condition that shareholders pay an additional $1 per share on April 29, hence the holders of those shares suddenly found themselves facing a payout way beyond their means - and to add to the misery - the company cut that dividend back to .05 cents - and delayed it until after the $1 call.

Shocked shareholders learned that they could not abandon their shareholding - and they faced loss of their homes, cars and personal wealth if the company pursued it's legal obligations and sued them for the money.

The shares are on the market - but of course there are no buyers.

It is amazing that some smart entrepreneur has not seized the opportunity offering. Those in trouble would heave a sigh of relief if they could find a buyer for their shares - and the debt would immediately transfer to the new owner.

What an opportunity for a person with absolutely no assets. No house. No car. Not a brass razoo in the bank - to offer to take those shares of the hands of distressed buyers - for a fee.

It would be a case of a " Dark Knight " riding to the rescue - and in the process becoming incredibly rich provided the money was a " donation " to a third person who had no business connection with the buyer.

There would be no point in suing a person without assets - and those with assets would be more than willing to pay a handsome fee to preserve those assets.

Opportunity knocks !

Saturday 27 December 2008

Disaster awaits us !

The Australian Bio Security Co-Op Research centre for emerging infectious diseases has released a chilling report on probable coming events.

A warming world and a rapidly increasing population in nations to our north make the emergence of new infectious diseases - and the reactivation of some old diseases - to be inevitable.

The warnings are there to be seen. It is only a matter of months since SARS broke out in some hot spots - and deaths from bird flu are ongoing in some of our northern neighbouring countries.

Decades ago the world was shocked when a totally new disease - AIDS - ravaged the gay communities of the world, and today that disease is still killing thousands of heterosexuals in many parts of the world.

The problem is that a warming world in combination with increasing numbers of people living in close proximity to each other - and to animals - generates the opportunity for new viruses to emerge.

There is always the chance of a disease of unprecedented power sweeping the scythe of death across nations - and in most cases new diseases are immune from conventional remedies and it takes years for science to devise an answer.

At the same time, old diseases are capable of mutation and taking on new defences and some that could scour population centres are Blue Tongue, Rabies and Foot and Mouth disease.

Customs and immigration are our first line of defence, but in this era of air transport a perfect defence is impossible. The best we can hope is that science is on the ball and working to anticipate what can appear suddenly out of left field - and that luck is on our side !

Friday 26 December 2008

A mystery benefactor !

Something strange is happening in Shellharbour village !

Last month a package containing $ 210 was received at a local burger store. A note enclosed asked the proprietors to keep ten dollars - and spend the remaining two hundred dollars giving free burgers to their customers. The identity of this benefactor remains a mystery.

Two weeks later there was a similar incident. This time the money went to the proprietors of a chocolate shop - and once again lucky customers were overjoyed to receive their purchases free.

To heighten the mystery, half of a map accompanied the first and second act of altruism - and when combined this map led to the location of a third amount of $ 210 - this time destined for free food from a local cafe.

Rumours are going the rounds of Shellharbour village. Some suppose that this is the legacy of a deceased former resident with no close relatives to share his money while others favour a more bizarre twist associated with the spirit world.

There is a chance that this may be the end of the benevolence as a cryptic message on the map reached conclusion - but there is also no hint as to where this money is coming from - and therefore it may continue.

At the risk of being cynical, there is also a very good chance that this is the creation of a very smart advertising executive.

Things are tough and times are hard - and there is nothing like a mystery - particularly one that hints at the supernatural - to get people's attention.

Could it be that the merchants of Shellharbour Village have combined to create this sensation as a way of drawing people to their small community to shop ? If so, the advertising it has created is many times the value of the six hundred and thirty dollars spent giving away free goodies !

If this is the case it shows a " get up and go " spirit that is a welcome example in these difficult times.

Whatever the cause - there are some who will be drawn to shop in the village in the hope that they may be a beneficiary of the mystery - and get something for free.

Who could ask for better advertising ?

Thursday 25 December 2008

Opportunity knocks !

Christmas day ! This morning countless kids will shriek with joy as they open their presents. Later, families will celebrate the festive season with Christmas dinner. The only bleak thought is the certainty that for a few people Christmas will be a tragedy - because of accidents causing death on our roads.

There never will be a completely safe road system - but the roads we have leave a lot to be desired. We badly need a divided highway linking Melbourne, Sydney and Brisbane - and the Princes Highway - linking the sea-bord towns between this state and Victoria is an accident waiting to happen.

There is a plan to spend our way out of the looming recession, and top of the list of things to do should be the creation of the road system this country so badly needs.

It will be a huge task. We compare our present roads unfavourably with other countries, but in all fairness it must be remembered that Australia is a continent similar in size to the United States - but with a population of just twenty two million - compared to their three hundred million people.

This world recession is not going to be over soon - and spending our way out of trouble is likely to be a multi year project. There are plans to improve the road system in the pipeline - but they need expansion and fine tuning to soak up the expected unemployed and deliver a road system that will not only save lives - but create the commercial network the economy needs.

A good road system would return a handsome dividend for this country's future !

Wednesday 24 December 2008

Inflation - the new enemy.

A lot of people must be wondering why Australia is taking a hit from the world economic meltdown. Our economy was in good shape. Employment was strong. We actually had a massive economic surplus.

It all started when a few greedy firms in Wall street, USA took advantage of a money surplus to make home loans available to people who lacked the ability to service those loans.

Then they bundled these loans into what they termed " Securities " and duped banks and investment firms into buying them as secure investments. When borrowers began to default it was realised that this was worthless paper. The money market panicked - banks stopped lending - and the world was on it's way to recession !

Governments of all political persuasions are spending money like drunken sailors trying to head off disaster. Most likely Australia has spent that massive surplus and will shortly join the rest of the world in fueling that spending spree by moving into deficit spending.

World government spending has moved off the description graph. We no longer speak of billions and trillions - like Zimbabwe we may need to coin a new word to accommodate this largess - maybe " Squillions " would do ?

Spending our way out of trouble may - or may not work, but one thing is certain - and that is the world is using it's printing presses to generate the money it is throwing at the economy. There simply isn't a source of money of that magnitude from any other source.

Do you remember when the biggest banknote available in Australia was the twenty dollar bill ? The steady march of inflation saw the introduction of the fifty dollar bill - and a few years later the hundred dollar bill.

Have you noticed the creeping inflation, despite the insistence by the government and the economists that inflation is " just mildly " outside the " comfort zone " of three percent.

Have you noticed that buying a single tomato now often costs fifty cents - and that bus and train fares are increasing at double and even treble this supposed inflation rate - and that electricity and gas are predicted to fade beyond the reach of low income earners ?

We are about to see a readjustment of monetary value - and that is called hyper inflation. World government debt incurred to try and head off economic collapse can only decrease the value of money in real terms - and that means your savings and the amount you are counting on for retirement is becoming a shrinking commodity.

This " fact of life " is met by a wall of silence from both the government - and the economists who have the skill to see it coming - because it is far safer to live in a world where we are insulated from bad news.

We will surely survive this world meltdown - but the economy we are accustomed to will be as remote as the days of pounds, shillings and pence way back in 1966.

The day when everyone will be a millionaire is about to dawn !

Tuesday 23 December 2008

Solar panel gobbledegook !

Few would disagree that having solar panels on the roof is a good idea. Solar panels can use the sun to give hot water without the need to tap fossil fuel burning electricity generators - and can actually produce electricity without giving off harmful carbon emissions.

The government heavily subsidizes the installation of solar panels - but all that is about to change from July 09.

This subsidy is means tested - and the division point is for those earning more and those earning less than $ 100,000 a year.

Amazingly those earning less than $ 100,000 will have their subsidy cut by $ 3,600 and those earning more than $ 100,000 will have their subsidy increased - and there will be a marked disparity between the subsidy offered to those living in the southern states - compared with the rest of Australia.

For residents of Sydney, Brisbane, Adelaide and Perth those earning under $ 100,000 will see their subsidy drop for $ 9275 to $ 6374, while those earning over $ 100,000 will see theirs increase from $ 1275 to $ 6374.

In Victoria and Tasmania the under $ 100,000 lot will go from $ 9093 to $ 5660 and the over $ 100,000 from $ 1093 to $ 5466.

It seems that the Federal government is alarmed at the popularity of this scheme - and has taken steps to slow the drain on it's funds.

It seems like a " smoke and mirrors " operation based on simple mathematics.

The number of people earning more than $ 100,000 is a whole lot lower than the vast majority - who earn considerably less than that sum. By reducing the subsidy to the larger group it becomes less attractive - and therefore the applications fall and the government shells out less money.

Perhaps it has something to do with the perception that the humble working folk are " the great unwashed " and therefore free hot water is wasted on them. It would be an interesting survey to establish if the rich shower more than the poor - and no doubt some statistician on the government payroll will one day undertake such a task.

Whatever the reason - from July solar panels will move further from the reach of the average wage earner - which seems a strange decision from a government that professes socialist credentials !

Monday 22 December 2008

Rescue costs !

There will undoubtedly be criticism of the $ 1 million spent sending HMAS Arunta on a 1200 kilometre mercy dash to rescue injured sailor Yann Elies from his yacht in the Great Southern Ocean.

Yann was competing in the Vendee Globe around-the-world race and in previous years mishaps have led to similar dramatic rescues - and a similar heavy expense sheeted home to Australian taxpayers.

It would be unthinkable that Australia would refuse to respond to such calls for help. We have obligations under international treaties to assist people of all nationalities in trouble - and it is the Australian psyche to disregard cost when human life is at stake.

What would be nice would be for the organisers of races like the Vendee Globe to take out an insurance policy to cover at least part of the cost of such rescues.

The race has sponsors and the media shows great interest - hence a levy to provide cover would not be unreasonable.

By it's very nature, sailing in the Great Southern Ocean is a risky business. It is far removed from anywhere - and is well known for producing huge storms and hazards such as drifting ice bergs.

An Australian response is not likely to change in the future - and at least the dash of an Australian warship can be written off as a training exercise.

Sunday 21 December 2008

A task of Biblical proportions !

Kevin Rudd's government has announced a budget of $ 6.1 billion to house the homeless people of this country.

Somehow that brings back memories of a previous prime minister who set a date by which " No child in Australia will live in poverty. "

It is estimated that on any given night 105,000 Australians are homeless, and that of these 16,000 sleep rough in the streets. The Federal government is pledging that within twelve years all those sleeping rough will be found a home.

Apparently the government does not understand the meaning of the phrase " Supply and demand ! "

If the supply is sufficient - demand quickly follows !

The churches hold out their hands for money and one of the reasons they claim our benevolence is to minister to the poor. The strange phenomenon is that we have hordes of obscenely rich churches - and despite this the legions of the poor never seem to decrease.

The reasons people are homeless are varied - and that ranges from the personal tragedy of alcoholism, sexual abuse and mental illness - to plain old fashioned selfishness and a refusal to obey the basic rules of self discipline in our relationship with others.

Homelessness is not something we can ignore, but most people would think the prime minister is being naively optimistic if he thinks that just throwing money at the problem will make it vanish.

What odds that twelve years from now - like that promise of the end of child poverty - very little will have changed ?

Saturday 20 December 2008

A holiday - but not for all !

The decision to repeal Boxing day as a " no trading " day for major stores will get a mixed reception.

Some will welcome the chance to return Christmas presents that are the wrong size - the wrong colour - or just plain awful !

The people who have to work in those stores will surely miss what has become a rare event in this country - two continuous days off work apart from their annual holiday break.

Big business will heave a sigh of relief at the news - because times are hard and this means that they are able to compete on a level playing field. In previous years that ban only applied to major centres - places deemed " tourist areas " were permitted to open.

It all seems to revolve around the concept of a market place without restrictions versus the rights of employees to a reasonable life style. The concept of Sunday as a day of rest has long gone - and it can not be too long before some traders will want to open their doors on Christmas day and Good Friday.

What seems to be missing is the first concept of supply and demand. There is only so much money in the community available to be spent. If the shops are closed for a day this spending is delayed until they open their doors - provided that closure is universal and there is no cheating.

If Boxing day reverts to a non trading day - except for convenience shops and petrol stations - the big traders actually save a days penalty wages - and lose nothing in the volume of overall sales - and the people they employ get a two day break.

It seems to be a win all round situation !

Friday 19 December 2008

The " Air safety " question.

Sydney has been an incredibly lucky city. Since the start of air transport Kingsford Smith airport in the heart of the city has had an unblemished safety record.

Unlike some overseas airports, there has not been an event where a huge passenger jet has crashed and ploughed through suburbia, killing and maiming hundreds.

This can probably be attributed to rigid safety regulations, well maintained modern aircraft, superbly skilled crews - and luck !

The pressure to create a second Sydney airport seems to have faded. Badgery's Creek has been ruled out and there is no immediate contender in sight - and hence the big jets continue to fly into the heart of Sydney - and will do so for many decades to come, even if a second airport decision was made right now.

What is surprising is that there is a second airport operating right in this city - and it is the primary training ground for aspiring pilots - and yesterday the worst fears of those living nearby was realised when two light planes collided - and one crashed into a home, killing the two pilots.

This raises the question. Should Bankstown be the site for pilot training schools, given that all approaches are over a built-up area of residential suburbs ?

The answer is clearly - no !

Bankstown also has a role as a freight airport and at least this traffic is operated by pilots with long flying experience. It is also slowly emerging as the base for regional passenger services on the basis that overseas jet traffic leaves little room for regional operations at Kingsford Smith.

It seems almost unbelievable that Bankstown must also share air space with large numbers of light training aircraft flown by trainee pilots. This is a certain recipe for disaster - as yesterday's events illustrated.

The government would be wise to immediately consider moving pilot training to a regional airport well outside the Sydney basin. There would probably be opposition on the base of time and distance involved, but the advantages of safety and the removal of stress in trying to manage trainee pilots and commercial traffic over a densely built-up area is overwhelming.

The other advantage is - unlike a duplicate of Sydney's main airport - a training facility would not be a costly airport to establish - and it could be sited at any of a number of existing regional facilities.

Such a move would benefit all concerned !

Thursday 18 December 2008

Land price sanity !

At long last some sanity is being applied to the massive land release about to occur at West Dapto. The number of blocks will be reduced from 19,000 to 16,000 - but the price per block will also fall by $ 64,000.

This will happen because the state government has removed the up-front housing levies imposed on developers and decided to apply any levies at the time of sale.

It accepts that housing at West Dapto in the $ 320,000 to $ 450,000 mark would not fulfill needs - and would certainly not apply the brakes to house prices generally in the Illawarra.

This action finally draws the whole question of development levies kicking and screaming into the public domain. Levies were introduced years ago to help pay for the government infrastructure needed to service new housing estates.

Obviously new housing needed access roads - and from there the list grew. There was a need for telephone services, street lighting, schools, churches, hospitals, fire stations, bus services - and shopping centres.

Levies to provide these got tacked onto the price of newly released land - but the services were usually decades behind - and in many cases never fully provided

Families faced a choice. Move into a new estate and live in a cultural desert - or pay a little more and live in an established suburb with all the amenities ?

In many cases, councils hoarded the money from development levies and used the interest from it's investment to fund projects that had absolutely nothing to do with the area from whence the money was collected.

The big question is whether those who buy newly released land should have to pay for all the services required, or whether this should be a charge on government and be drawn from the taxes levied on the entire community ?

It seems that government thinking is slowly moving to that point of view !

Wednesday 17 December 2008

Life gets harder !

One of the avenues available to citizens trying to navigate the complexities of the law is closing.

People who can not afford a lawyer and who do not qualify for legal aid have in the past had the opportunity to consult Chamber Registrar John Kuczwal at Wollongong Court House. This position was formerly known as a Chamber Magistrate.

John Kuczwal does not give legal advice, but provides guidance on the options available under the law. This could involve matters relating to children, debt, neighbouring disputes and violence.

Often sound advice from the Chamber Registrar can defuse grievances and lead to a resolution without the need for court action, and as such this is a valuable service much appreciated by the public.

In future the time available to consult with the public will be extremely limited because additional court duties have been imposed on the Chamber Registrar. Those seeking advice will have to make do with accessing a call centre.

It seems part of the shrinking free public services being wound back because of the economic downturn - but the advice of a call centre can not match the value of a friendly face to face interview with wise legal council in setting the under privileged at ease and providing guidance.

It also underlines the gap between rich and poor when it comes to the law. The rich can afford fancy lawyers and their day in court.

That is now something that moves further away for the lower level of society !

Tuesday 16 December 2008

Telstra plays " hardball " !

Yesterday Telstra shares fell 48 c - an 11.6% drop - on the news that the Telco had been dumped from the tender process for the National High Speed Broadband service.

Telstra has long played hardball when it comes to negotiating with the government and in a glaring attempt to use it's muscle to it's own advantage it chose to ignore one of the five mandatory requirements of the tender process.

It failed to include plans to allow " small and medium enterprise participation " - SME - to allow a wide range of providers to supply goods and services to the project.

By shutting out the rank and file, Telstra obviously intended to keep work on the project " in house " - and thus be able to enhance it's profits from behind a veil of secrecy.

It seems to be a case of Telstra issuing a dare. It believes it is so big that the project can not proceed without it's inclusion - and in that respect it does hold a huge advantage.

The broadband project does not intend to deliver a broadband service to every home and office in the country. The plan is to provide it " to the node " - which means to the telephone exchange in each city and town.

Telstra owns the copper wire that delivers telephone services from these exchanges to every home and office, and it is declining to make that copper wire available unless it gets it's own way and controls both the system - and the prices it chooses to charge.

It is a dangerous brinksmanship. The cheapest way to connect the exchanges to homes and offices would be via the existing copper cable network - but that is not the only way possible.

The government could opt to up the ante and replace copper cable with a wireless connection - similar to the mobile phone system. If that happened, Telstra would be left with a billion dollar investment in place that would be instantly redundant - and which would turn from an asset into a liability.

Copper wire is old technology and Telstra is playing with fire if it pushes too hard. The losers would be the Mum and Dad investors who bought Telstra shares in the hope of a bonanza similar to the Commonwealth bank issue when Telstra was privatized.

This s a high stakes poker game. If Telstra finds it has a losing hand of cards the executives in charge will walk away rich men - and the shareholders will bear the losses.

Monday 15 December 2008

Global warming - decision day !

Today the Australian government will announce the target for reducing Co2 emissions, due to start in 2010. Whatever that figure - it will not please everyone !

The objective is to cease warming the planet by reducing the amount of carbon generated and this is to be measured as a reduction achieved by the year 2020.

The government has suggested that this target will be somewhere in the range between five and twenty percent - generating howls of pain from both ends of the debate spectrum.

For the purists a low figure will achieve nothing and condemn the world to rising seas, lower rainfall and the death of millions.
For industry the gazetting of a higher figure would amount to " economic suicide " because the cost of implementation would make us uncompetitive and see our economy crash to ruin.

The fact that the decision is being taken at a time when most of the world has slid into recession and the world economy is on a knife edge is seen by many as a good reason to delay the start until times improve. Others question whether any figure is sustainable unless all the nations on this planet agree to jump aboard.

Then there is the question of good faith. Leaders of some countries are known for agreeing to plans and signing legal documents - and at the same time having no intention of actually meeting these obligations.

Pledges of money at world forums are little more than a joke - when implementation is ignored. Why should anything be different when it comes to climate change and the pain necessary to reduce Co2 levels.

It seems that Australia is likely to be one of the first nations to bite the bullet and announce a binding reduction target. World reaction will give an indication of just how seriously other nations are committed to action rather than just rhetoric.

A deathly silence would not bode well for this planet !

Sunday 14 December 2008

Darker nights ahead !

Very few people give much thought to the street lights that make our suburbs safe at night. They are simply a fact of life - and we only give them thought when a bulb needs replacing or a storm causes a power failure.

The light poles, cables and bulbs are all supplied by which ever power company services our neck of the woods. Energy Australia, Integral Energy or Country Energy then bill the local council for the power used.

We know that electricity prices are set to rise sharply - and lighting the city and suburbs uses a lot of that commodity. The power companies are talking to the Australian Energy Regulator ( AER ), about an 11% increase in July - and suggesting that street lighting costs could increase by 40% by 2014.

Councils fear this is an under estimate - and that the true cost could be more likely 67% by 2014.

Rate rises are pegged by the state government, hence if street lighting increases sharply councils will either have to cut back other services - or make economies with the street lighting programme.

Sooner or later they will need to consider a range of options - and these could include a reduction in the wattage of light bulbs used to the idea of turning off every second street light.

The result would be a dimmer city - and public safety would have to be a consideration - but that seems to be the choice between keeping street lighting in it's present form and reducing items such as the hours of public libraries or mending fewer pot holes in our roads.

Either way - it will not be a popular decision !

Saturday 13 December 2008

The " Cockatoo Run " is alive and well !

One of the best tourist attractions of this state was the " Cockatoo Run " - a journey from Central in Sydney through the scenic south coast to Robertson in the southern highlands.

The centre piece of this return to the steam age was the magnificent 3801 steam engine pulling antique coaches. There was a waiting list to book a ticket - until a disinterested state government pulled the plug.

The restored 3801 was housed at Everleigh rail yards - and the government had plans to develop this for high rise living. Steam engines need coal and water, facilities of the past in an electric age and something the government couldn't be bothered providing. They simply refused to renew the lease on 3801 - and that great old engine was returned to the train graveyard at Thirlmere - and left to rot !

The Cockatoo Run lives on - this time pulled by engine 5917. This American built black monster was restored at Cowra by the Lachlan Valley railway and once again full loads of tourists will experience the age of steam as they journey through magnificent rain forests on a memorable days outing.

There remains one thing yet to be restored. In the 3801 days the coming of this train was heralded by it sounding it's steam whistle. This unique sound on a Sunday morning brought children running to the rail line to see the train - but the mean spirited complained and termed this " noise pollution " - and the whistle was silenced.

Lets hope the driver of 5917 once again pulls the lanyard - and that nostalgic sound of a by-gone age again delights enthusiasts as it steams on it's south coast journey.

Friday 12 December 2008

The " Go Home " solution !

Wollongong council has released details of a plan to control drinking and food hours in this city - and it seems to create more problems than it solves.

The idea is to separate pubs and clubs into two categories - those that presently exist, whose hours and conditions will be unchanged - and " new " premises which will be forced to adopt vastly changed trading conditions.

The existing clubs and pubs have a mix of trading hours that range from 4 am closing to unrestricted 24/7 operations. There is public disquiet at the conduct of patrons exiting these venues, resulting in fist fights, graffiti and damage to property.

According to the council plan all new alcohol outlets would face a 1 am closing time and food premises would close at midnight. New pubs and clubs could apply for an extension - which would mandate a 2-30 am lockout and a 4 am close. Food outlets could be granted an extension to a 2 am close.

The " Catch 22 " provision is that should any existing location wish to make improvement to their premises that would necessitate a Development Application to Council ( DA ) - this would result in that venue moving from " existing " to " new " in the application of these rules.

It doesn't take Einstein to figure that this imposition would immediately close off all thought of venue improvement. The drinking scene in this city would be stuck in a time warp - and it would do absolutely nothing to improve the rowdy behavior of patrons exiting the existing club and pub scene.

It looks like the new Council Administration is trying hard not to upset the owners of existing venues, given their clout and ability to guide public opinion - and at the same time give the voters the impression that they are moving to clean up the mess.

The question nobody seems to want to address is whether we need licensed premises dispensing alcohol 24/7 !

It would make a whole lot more sense to simply bring in a new closing time that would seem reasonable to most people.

The longer people drink - the drunker they get ! If they haven't had enough to drink by 1 am or possibly 2 am - then there is a case for requiring them to do the rest of their drinking in the safety of their own homes.

Council should bite the bullet - and bring in a " go home " policy and mandate a reasonable closing time for this regions clubs and pubs. There would be no need for legislation on food hours as a result.

Nobody stays open when the customers have gone home !

Thursday 11 December 2008

Beware the legal bandits !

Identity theft seems to be the latest crime wave separating victims from their hard earned money, but there are also clever people operating entirely within the law who are achieving the same result.

Vast numbers of people found themselves owning shares when the N.R.M.A. demutualized some years ago. For some this was their first experience at owning shares and as a result entrepeneurs started to exploit their vulnerability.

All holders of I.A.G shares - this being the insurance arm of N.R.M.A. - received letters offering to buy their shares. The inducement was that there would be no broker's fees - and all the holder needed to do was to sign on the dotted line of the attached legal transfer document.

The only problem was the price. The sum offered for the shares was usually at least half of what those shares were currently worth on the stock exchange.

It is amazing just how many people happily signed away their free shares. In some cases they were hit at a vulnerable time when money was urgently needed and many had no idea what the actual worth of their shares would be - and had no idea that it could be determined by checking the share prices in their local newspaper.

This purchase scheme runs on a well oiled strategy - and once again letters of offer are in the mail to all I.A.G. shareholders. Circumstances may have changed since the previous offer. The owners of the shares may be deceased and the shares passed on to a spouse or other family member.

Perhaps the present economic downturn may be more conducive to triggering a selling decision.

This has been a most successful operation and it has netted the organizers millions of dollars. What can be more simple than buying something at half it's worth and promptly reselling in through the legitimate stock exchange ?

The scheme is also perfectly legal. No law is broken if a buyer offers to purchase something at a price lower than it's worth. That is the first law of commerce and is exploited daily when merchants advertise in newspapers and on TV offering goods way below their supposedly real value - thus reversing the deal.

Buying or selling - both sides need to do their homework - and for those with shares the best protection is to learn to keep abreast of values by checking the share price in daily newspapers on a regular basis.

And check with a financial adviser before signing on that dotted line !

Wednesday 10 December 2008

Maxi cabs.

The Illawarra has it's first maxi cab. The only question seems to be why this excellent idea took so long to morph into reality !

Cabs date back to the horse and carriage days - and the number of seats available is actually diminishing. Decades ago most cabs took five passengers and the driver. Today that has shrunk to four passengers and the driver - the replacement of the front bench seat in favour of front bucket seats having removed a capacity of one.

The first Illawarra maxi cab - based at Shellharbour - can take eleven passengers.

There are attractive economics in it's fare structure. More than four passengers result in the meter charging a fare and a half for the remainder up to the eleven capacity.

Suppose a party of people require transport from Albion Park to Wollongong and their numbers would necessitate two cabs. The fare would be $ 180 for two cabs to make this trip. In comparison - the maxi cab charging at a fare and a half would only cost $ 90.

Knowing that a maxi cab is available, many people will tailor their outings accordingly. There is value in combining friends and family to share the cost of an outing rather than several people making their own arrangements.

We have special cabs for the disabled. It is a long overdue extension of thinking to introduce bigger capacity cabs to move groups of people who wish a night out - and being responsible people wish to avoid the danger of drinking and driving.

The state government could do it's part by introducing lower registration fees to help offset the higher purchase price of such vehicles !

Tuesday 9 December 2008

The right to demonstrate ?

We seem to be moving to the far left when it comes to our attitude to public demonstrations. Few would argue that the public have a right to protest against government decisions of which they disagree. The problem is just what degree of violence is acceptable !

The nation of Greece has seen it's youth take to the streets, smashing business houses and committing arson. In one incident a youth throwing a " Molotov cocktail " was shot by police and killed.

As a result, the police involved have been arrested. A minister has stood down from his post - and an enraged mob is roaming the streets causing more damage.

Many here would be reminded of a similar riot at Redfern several years ago. In that instance poor police leadership saw police without body armour face a drunken mob of Aboriginals who assaulted them with " Molotov cocktails ". No shots were fired, but the police were criticised for defending themselves with batons.

It is reasonable to question whether a demonstrator has the right to try and inflict grievous bodily harm - or even death - on a police officer and expect to get away with it without deadly force being used in defence.

The only reason people resort to such tactics is the certain knowledge that deadly force will not be employed.

The attitude of the public is fickle. If a police officer is badly injured in such a riot the public tends to shrug their shoulders and look the other way.

If a demonstrator is similarly injured the outpouring of rage knows no bounds - and of course - the defensive action of the police is condemned.

There would be few instances of extreme violence in demonstrations if the sure and certain outcome would be the use of deadly force in return.

When demonstrators burn cars and buildings, assault citizens opposed to their view - and try to kill police they are surely no better than terrorists.

It is time the " softly - softly " approach was abandoned - and force was met with force !

Monday 8 December 2008

The slave drivers !

Medical people will ring alarm bells at the news that in the first twelve months of government forty percent of Kevin Rudd's staff have quit - and Deputy Prime minister Julia Gillard has experienced an even greater attrition rate of fifty percent - with " overwork " claimed as the reason.

A new government fresh to office has a big task of setting it's agenda and the past twelve months have been unusual in that the world has experienced a financial meltdown, but that sort of resignation rate would get the full attention of union officials if it happened in private industry.

Workers advocate Bill Shorten comments " I don't think people have been worked too hard ", but that is hardly reassuring considering that he is referring to his boss and the deputy boss of his own political party. He is hardly likely to voice criticism in such circumstances.

Any good psychologist would see danger in this situation. Either these two political leaders are slave drivers who demand performance beyond human capacity from their subordinates - or they are themselves working at an unsustainable rate and expect their crew to work to a similar level.

In either case there is only one possible consequence - and that is " burnout " !

We are now seeing this " burnout " in the attrition rate. Jobs at this level pay very good salaries and have huge perks so employees do not relinquish them lightly.

The fact that so many throw in the towel and walk away has a lot to do with the medical consequences of impossible hours and mental strain. Such conditions are clear factors in alcohol abuse, marriage breakdowns and the deterioration of mental health that has so many unpleasant manifestations.

The big danger is to the continuing health of Rudd and Gillard - and their capacity to perform in the top jobs in this country.

So far they seem to have done a good job as our leaders and it would be catastrophic if their work load impaired their mental ability - causing them to make mistakes that this country could ill afford in the present economic circumstances.

The message is clear. They need to slow down - and evaluate what still needs to be done at a less frenetic pace.

If this impossible attrition of their staff continues Australia will have good reason to believe that the same fate will overtake the two people at the pinnacle of power !

Sunday 7 December 2008

Tyre danger !

It's a fact of life that most drivers pay too little attention to the tyres on their car. As long as there is enough tread showing to pass the annual registration inspection seems to be the extent of their concern.

Tyre pressure also is widely ignored, despite the fact that under inflated tyres cause drag and reduce petrol economy, and both under and over inflation cause uneven wear and bring the date of replacement closer.

Some people try to save money by using low cost retreaded tyres, but these have a habit of tread separation - and should never be used as steering tyres if the vehicle is to be driven above very low speeds. Retreads function satisfactorily in stop/start commuter driving, but beware using them on the open road.

Now there is a new danger being brought to the attention of motorists. The age of tyres is a factor and many people who have new tyres installed expect that they are buying a product made in recent months.

Beware the dealer who has a sloppy record of stock turnover - or is discounting a line of tyres which may have been a poor seller and remained in the warehouse for years.

Tyres have a manufactured date embossed into their sidewall - and it is important to check this to see that the manufacture date was recent.

Also keep in mind that spare tyre in the boot. Many people do not rotate their tyres to get a spread of mileage and in some cases the tyre in the boot matches the manufacture date of the car - and in an old car that could be a fatal combination.

Tyres have a tendency to perish with age, and when you are doing a legal 110 kph on the freeway that is not a good time to experience tyre failure.

Regular attention to air pressure - and checking the manufactured date when replacing tyres can pay dividends - and make for safe motoring !

Saturday 6 December 2008

Borrowed money !

Few would disagree with the strategy of Kevin Rudd's government to try and spend our way out of trouble. It is a plan being followed by most other developed nations and there is at least a fair chance it will succeed.

That surplus of just about twenty-two billion dollars has been a God send. Without it we would be deep in deficit to bolster public spending - and money borrowed is something that eventually has to be paid back.

It seems inevitable that we will have to embrace a deficit to keep the money stream flowing and the big question that will worry many people is just how political the spending of that money will become.

The government is talking about funding some sort of development bank that the states can draw on to finance essential infrastructure projects. The danger is that politics will get in the act and we will see states with a Labor government rise to the top of the list in the hope that these projects will deliver public voting support - and keep Labor state governments in power.

There is also the question of what this money will finance. The last thing we need is political choices that look good to the voters because they employ people - but in reality deliver little to the benefit long term of the country.

Politicians being politicians there is every chance that re-election will take precedence over the public good.

We are facing the most dangerous financial period since 1929 and if ever fiscal management needed the right choices and an unbiased approach it is now.

When we adopt a deficit culture those making the decisions should remember that the money being borrowed to fix today's problems will become a debt that our children and grand children will have to repay.

Politicians fade to a very comfortable retirement when their time in parliament ends - but the decisions they make become a legacy for every man, woman and child in this country - and their heirs !

Friday 5 December 2008

A new " loop " bus.

The state government plan to introduce " loop " bus services to Wollongong and other major centres is probably the best and most practical transport innovation in recent decades.

In Wollongong this 14.7 kilometres loop will service the beach, the entertainment precinct, the CBD and the Mall, the railway station, the hospital, the University - and the inner city suburbs from Fairy Meadow in the north.

Buses will run every ten minutes both ways in peak during weekdays - and at twenty minute intervals off peak - while weekend services will be on a thirty minute time frame. It is envisaged that the service will involve a thirty-five minute round trip.

One worrying feature is the suggestion of just seventeen bus stops, meaning that each stop will be just under a kilometre apart. The important thing will be to ensure that there is ample car parking available close to each of those stops.

The purpose of this loop bus is to get people out of their cars and using public transport. The planners need to take into account that most people will still use their car to get to where they intend to board the bus - and will use their car to return home after the journey.

The biggest remaining problem will be - inertia ! This is a marvellous idea, providing transport free of charge to solve the parking problem, but getting people to actual break their usual transport pattern and go by bus will be a challenge.

How to achieve that remains to be worked out, but the biggest tragedy this city will face would be to have these free buses running day and night - without passengers.

If the loop bus fails because of lack of patronage we will only have ourselves to blame - and it will fail if people turn their backs on it.

Somehow the promotional people have a job on their hands - to convince the people of Wollongong that driving their cars to destinations serviced by the loop bus is simply so anti-social that they will be condemned by their peers.

It worked with other conservation measures. How many people still waste water openly ? How many haven't changed to power efficient light bulbs ?

The challenge will be to convert public attitudes. How that can be achieved is the question still to be addressed !

Thursday 4 December 2008

Credit cards.

Interest rates are falling fast as Reserve banks the world over try and head off the looming financial meltdown. Good news for those with a mortgage - but offering no relief for those heavily indebted to the banks through their credit card regimes.

It all started in Australia back in 1974 when Bankcard was introduced. The banks aggressively mailed out this new credit card to customers and the ubiquitous " Bankcard Welcome " appeared alongside merchant's cash registers.

People who had never experienced credit beyond a local store card suddenly found themselves targeted with their credit limit repeatedly increased and minimum repayments deceptively alluring. In most cases no interest was charged if the card was fully paid within thirty days.

It went downhill from there. Credit cards could be used overseas and could fund holidays. Interest rates crept up - and then the banks moved in for the killing.
Suddenly a plethora of extra charges applied. Pay a day late and cop a hefty fee. Administration fees and number of transaction fees vastly increased bank profits - and made credit cards a losing proposition for many.

The subtle marketing plan the banks used was the scattergun approach. Credit worthiness was not an option. The banks dished out credit cards and raised credit limits with reckless gay abandon.

Young people with little commercial experience fell into the trap and became hopelessly over committed - and many faced bankruptcy. Credit cards became the avenue of last resort for those facing financial ruin because of market changes - and the banks couldn't have cared less !

They maintained impossible credit charges to compensate for taking no action to limit these cards to people with responsible credit histories. Just about anyone could get a credit card and rack up debt. Those that didn't pay were written off - and subsidised by those who did pay.

Now the day of reckoning is approaching. The government is demanding that the banks adjust their credit card rates in tandem with mortgage rate decreases - and the banks are baulking.

It all depends on the will of the government. If the Treasury applies enough pressure the banks will have to fall into line and we will see a new era of credit management.

Getting a credit card will become very similar to the procedure for getting an overdraft in years past. A good credit record will again become a badge of honour, necessary when entering into any new financial transaction.

It seems to be a test of wills - and on a world view the situation is not encouraging. So far the banks seem to be standing firm - and credit card charges remain high in all countries of the western world.

All it needs is a little bit of firm resolve !

Wednesday 3 December 2008

The enemy within !

The appointment of Hilary Clinton as Secretary of State may be the worst decision Barack Obama has made so far in his career.

The job of Secretary of State is crucial in an American administration. That person is the conduit to the rest of the world and must accurately parlay the policies of the president to other world leaders.

Hilary Clinton is a politician with her own agenda. In particular, a socialist party such as the Democrats contains many strange bed fellows and points of view. The vision of the party leader is not usually the only view of choice within that party.

It can be expected that Clinton's attitude to her job will be heavily influenced by her life partner - former president Bill Clinton.

The stage seems set for these two political heavyweights to form an alliance within the new administration that may or may not run parallel to the policies of the president.

There is also every chance that Hilary Clinton has her sights set on a future run for the presidency - and if that means establishing herself as the originator of American foreign policy rather than as a mouth piece for the president - it could signal a mile of rocky road ahead.

Obama has made a decision that could deliver a dividend, provided Clinton continues to provide loyal support. She certainly has the brains and experience to be a great Secretary of State.

The only question is whether she can control her husband's meddling ways - and whether her ambitions and those of the president run in tandem !

Tuesday 2 December 2008

The art of illusion !

Politics is all about creating an image that may have absolutely no relation to reality. Such is the outcome of the transfer of car imports from Glebe Island in Sydney to Port Kembla in Wollongong.

From the start the reason was shrouded in obscurity. Wollongong people were told it was to stimulate growth in their region - and create more jobs - jobs - jobs !

Sydney people were told that removal of commercial activity from Port Jackson would stimulate the tourist trade, Sydney would become a world Mecca and residents would prosper from the coming spending boom.

The last car transport has now discharged at Glebe Island - and the smoke and mirrors have faded to reveal - reality !

The real winner has been the transport industry. When the first of the 235,000 imported cars roll off the ships in Port Kembla they are put on car transports - and trucked right back to the car storage and distribution facility at White Bay - in Sydney !

The vast portion of those cars - between 70% and 80% - are destined for car showrooms in Sydney and adjacent areas. As a result, car movement amounts to about 110,000 truck movement trips annually.

The only winner has been the state government. Land formerly used for commercial shipping activities has been freed up for redevelopment - and most of that is in the high priced foreshore areas where high rise will bring a king's ransom.

Sydney will have lost the jobs of those who formerly worked serving commercial shipping. Wollongong will suffer a crippling increase in truck movements that will overload it's existing struggling road system - with no improvements either planned or projected - and all this extra transporting will surely leach into the delivery price of imported cars.

It will all be sheeted home to that magic word " progress ".

But don't tell that to the commuters on their daily grind getting to or from work on the dangerously congested F-6 and Picton roads !

Monday 1 December 2008

Salon danger !

A long time ago a hairdresser was a licensed professional who had successfully completed a trade course. That qualification was proudly displayed on the salon wall.

For some inscrutable reason the New South Wales government decided it was just too much bother to regulate the trade - and since then anyone can set up shop and call themselves a hairdresser.

The results are now coming forth in women scarred by the incorrect use of hazardous chemicals and a litany of damages cases finding their way through the courts.

In earlier days hair colouring and fashion in general were of a milder nature. Today running a successful salon requires the operator to produce results comparable to the best Hollywood stylists - and to create new creations that bolster customer numbers.

This is where the problems arise. What may be perfectly safe to use on one person could produce horror results on another with allergies or a different skin type.

Without training the hairdresser is at the mercy of blind chance, and in many cases suitable training would alert a hairdresser to send the customer to a dermatologist before even considering applying harsh chemicals.

It seems to be a case of " buyer beware ". The courts require any business to apply diligence where damage may occur, but without formal qualification there is no clear cut area of responsibility.

It may be that in the near future people going into a salon for hair treatment may be asked to sign a waiver disavowing responsibility for any unfortunate results.

There is also a chance that the government may see the light - and reintroduce a trade regulated by professional training standards !

Sunday 30 November 2008

Junk mail !

If ever there was a subject that would lead to a heated argument - junk mail would certainly be first cab off the rank.

Some people love it. Most people hate it - and in between we have those that skim through the daily pile before consigning it to the recycling bin.

It certainly creates a third world vista when it is uncollected and left blowing about the street and front yards of unit blocks and housing estates.

If it is so unpopular - why do advertisers continue to use this medium - and why isn't there a backlash from disgruntled people who refuse to buy their goods in retaliation for it's use ?

The answer is simple - because it works !

Advertisers carefully collate sales figures that can be directly related to their advertising methods, and on a money for return basis direct junk mail is a worthwhile investment.

It also has certain advantages over newspapers, television and radio. Individual streets can be targeted to promote a particular shop location and the specialist products they stock.

It is particularly handy to alert people to a new innovation established in their area and to concentrate the sales message for a cut price service that will only be available for a short time in that location.

It seems junk mail is here to stay. The obvious answer is to sit back and enjoy it. At least it brings some comfort to the housebound by bringing shopping to their letterbox - and it is a welcome source of income for the army of delivery people !

Saturday 29 November 2008

Opportunity lost !

In the middle of this year the price of petrol reached a dollar sixty a litre - and the pundits predicted that we would see two dollars a litre by Christmas !

It didn't happen ! Along came the sub-prime mortgage fiasco - quickly followed by a world wide recession - and with the drop in demand petrol is approaching the one dollar a litre level - and may even dip under that by Christmas.

Dramatic events took place as a result of that price surge. Kevin Rudd bestowed millions of Australian taxpayer's dollars on Toyota to begin manufacturing hybrid cars in this country.

Electric propulsion gained a new lease of life. We are within months of seeing several serious entries into the electric market burst into showrooms, and the prestige European marques have successfully tamed diesel engines to provide amazing economy without the rattle and fumes normally associated with diesel.

The only drawback seems to be the price the oil companies are gouging for that fuel. Petrol may have dropped in price, but diesel - which takes less refining than petrol - remains artificially high and is compounding the inflation rate because of it's impact on the movement of goods.

There was also speculation about increasing the ethanol content of vehicle fuel. The oil companies have been dragged kicking and screaming into providing a ten percent ethanol mix under the " E 10 " banner, but they have demonstrated that they are beyond the reach of government control when it comes to the major decisions on price and availability.

The government may bluster and threaten a control regime with drastic penalties - but the oil companies hold all the cards. When it comes to that commodity - they are the only game in town !

So - We are back to square one. But a great opportunity has been lost.

When petrol prices hiked many people did exactly what the government had been urging for years. They left their cars at home - and took public transport.

What a miserable experience that proved to be !

Slow trains - packed in like sardines - with depleted timetables, incapable of handling the commuter crowds and delivering people late for work.

Buses that left commuters standing at bus stops because they were already full and could take no more passengers. Crowded - inconvenient - uncomfortable - and with no immediate prospect of improvement.

So despite high petrol prices motorists went back to their cars, and now the price of petrol has dropped they are going to stay with convenience and creature comfort.

The fiasco of public transport means that when petrol prices rise again - and they inevitably will - the memory will keep drivers in their cars.

The old adage - " Once bitten - twice shy " will prevail.

They tried public transport - and found it wanting - and the experience will convince many that the car is the only answer to personal transport - irrespective of what sacrifices have to be made in the family budget to make it possible.

The government lost a golden chance to change public culture - and perhaps it's biggest chance to save the planet by reducing exhaust emissions !

Friday 28 November 2008

Mumbai !

The terrorist attacks in Mumbai raise an interesting question. Why are there Muslims living in India ?

When the British Raj ended in 1948 Hindus and Muslims agreed that it would be impossible for the two religions to coexist together in a single country with a single rule of law.

As a result, the existing country was split into two totally independent states. India for the Hindu and other religions - and Pakistan for the followers of Islam.

The decision resulted in great upheaval - and bloodshed. There was an exodus of Muslims to Pakistan - and a corresponding exodus of other religions to India, but the separation of religions was not complete.

Many with property or a business on the wrong side of the border elected to stay and many Muslims remained in India because they were not convinced that an Islamic state would remain peaceful - given the split between the two main branches of Islam.

The bloodbath in Mumbai - one of several recent similar events in India - must awaken a desire in many to banish all Muslims in India to Pakistan. That was the original intention of partition - to create a Muslim state to satisfy the followers of Islam.

It could be reasoned that if Muslims choose to live in India they should respect the fact that they live in a non-Muslim country - and respect the laws and customs of that regime.

Every act of terror perpetrated on Indian soil by Muslim extremists will harden the attitude of Indians to having Muslims in their midst - and if that ever progresses to a pogrom to rid the country of Islamists the world will become a more dangerous place.

It could lead to Muslim countries expelling followers of other religions, and if ever the world divided into a Muslim half and a combination of the rest of the world's religions in the other half - then a war would be inevitable.

The answer must rest in the hands of the vast majority of Muslims who simply want to follow their religion, earn a living - and live in harmony with those around them.

The fundamentalists are a relatively small group of people following an extreme version of Islam. They wish to force their religion on all others at the point of a sword - and declare that it is their given task to kill all those who refuse to yield.

Their greatest protection is the tendency of other Muslims to " look the other way " and do nothing - claiming that it is " not their business ! "

If Islam wants peace ordinary Muslims need to pay attention and root out these extremists. Extreme views do not go unnoticed in the Mosques and all it takes is an attitude of mind by peace loving Muslims for the extremist group to be in big trouble.

The future of the religious world rests on that support taking root !

Thursday 27 November 2008

The stack !

The most visible landmark in Port Kembla is the huge stack used to disperse gases from a copper smelter. That plant has since faded into history - and it seems that the life of the stack is now numbered.



It was built in 1964 at a cost of $ 941,000 in present dollars - and at that time was the tallest stack in the southern hemisphere. It weighs 14,000 metric tons and at a height of 198 metres dominates the Port Kembla skyline.

Unfortunately concrete cancer has set in and the outer facing is crumbling, with constant break-aways a threat to those using the area below.

The suggestion of demolition has provoked controversy. Most agree that it needs to be torn down but a sentimental few would like to see it remain as an icon of a past age. Those in close proximity are very vocal and demand that it be levelled. They remember the foul gases and constant upheavals from a smelter plant that couldn't reach it's promised level of containment - and fear that as long as the stack remains some other manufacturer of dangerous products may seek to use it as a cheap way of starting operations.

Demolition seems a certainty. It is old and no longer meets the standards required of stacks when it comes to resistance to earthquakes and powerful winds - and the cost of refurbishing it could easily match the original building cost.

The government has promised that the levelling will not be advertised to avoid another catastrophe similar to when a Canberra hospital was demolished and the explosions went wrong, scattering debris and killing a young girl.

The end of this stack will be a photographers dream - and they will be hard pressed top ensure secrecy - and prevent a barrage of cameras recording the event !

Wednesday 26 November 2008

Hire and fire !

Precisely a year after winning office the Federal Labor government has presented it's " Fair Work Bill ".

This replaces " Work Choice " and there is no doubt that it has a mandate for change. The then opposition and the unions demonized Work Choice - but the voters clearly saw it as one of the reasons for the big swing to a Socialist regime.

The new bill signals a return to collective bargaining and the unions will again have a prominent position in representing their members at the bargaining table.

There will be a new umpire. The old Australian Industrial Relations Commission ( AIRC ) will be disbanded in favour of " Fair Work Australia ".

We will probably see a return of union thuggery and the new legislation will extend to small firms with a limited work force - and for the first time will cover casuals.

There is just one clause in this new regime that will make it unworkable.

The " Unfair Dismissal " definition now no longer recognises " Operational reasons as an acceptable reason for dismissal ".

This seems to be accommodating the union view that " There never is and never will be a valid reason for an employee to be dismissed ".

This comes at a critical time for Australian industry. We are at the start of an economic downturn and the government expects unemployment to rise as demand for goods and services retreats.

This provision in the Fair Work bill removes the employers right to hire and fire - and that is the basis of economic management.

When things are booming more people are hired - and when there is a downturn it is necessary to reduce the work force.

It seems that we are going back to the bad old days before Work Choice, when employers refused to take on new people and persisted on working a smaller work force with huge amounts of overtime.

This was despite record unemployment and the clear need for an expanded work force - but hampered by the cost and hassle of trying to downsize.

A savvy union official could delay a case in the courts for months - and many employers accepted that it was cheaper to pay an excess member $ 30,000 to resolve the matter than to continue court action.

It seems to be a case of union agitation influencing socialist thinking.

If the economic downturn becomes as bad as some pundits predict this refusal to recognise the employers right to hire and fire will make what is otherwise a good piece of legislation unworkable !

Those seeking work will be the losers !

Tuesday 25 November 2008

Mission impossible !

Justice James Wood's enquiry into the Department of Community Services ( DOCS ) handling of child harm cases agrees that it is impossible for the huge number of referrals to be investigated with any degree of certainty.

In future, DOCS will only act where " significant harm " is likely, with lesser cases being relegated to the private sector for followup.

This will satisfy nobody - and it sets the scene for lurid media headlines and a spate of finger pointing further down the track when inevitably a child death occurs and there is the accusation that earlier DOCS intervention could have saved that life.

We have a " mandatory reporting " regime that requires the medical profession, school teachers and others to report instances where they suspect child abuse is taking place.

We have a huge number of " good Samaritans " who look out for children who appear to be at risk - and we also have those who maliciously report child abuse as a " pay back " to extract revenge on a failed relationship or as part of a neighbourhood dispute.

The sheer volume means that it is impossible for DOCS case workers to spend the time necessary to fully investigate each of these reports - and as a consequence - from time to time one slips through the cracks and a tragedy occurs.

In a perfect world money would be no option and the government would provide the number of case workers DOCS would need to do a full in depth investigation of every matter referred to it.

The present decision to only investigate cases where " significant harm " is involved seems to be a case of " making do " with the resources available.

It is not perfect - and there will be future horror stories - but child care will simply have to join the queue alongside the health system, justice system and general welfare in doing what is possible with the limited funds available.

The present financial meltdown means that pool of money will shrink rather than expand in the immediate future !

Monday 24 November 2008

Stop - at your peril !

In a few days time - on December 1, 2008 - a new law will come into force.

You will no longer be able to stop your car in an area designated by a " No Standing " sign to pick-up or drop off passengers.

All " No Standing " signs will be deemed to be " No stopping " signs, although it may take years for the actual replacement to take place. The police and rangers will hand out hefty infringement fines for those disobeying this law.

The new legislation is supposed to bring this state into uniformity with the other states on road laws - and supposedly the present arrangement is considered a road safety risk - although this would be hotly denied by most people.

It creates a new problem for the elderly and their carers. Just where will it be legal to pick-up and set down passengers who need to visit a doctor's rooms or a specialists office ?

It is illegal to use a bus stop for this purpose - and these days " Loading Zones " are as scarce as hen's teeth.

No doubt the state will designate " pick-up " areas in due course but these will be sited by bureaucrats - and there is no chance that they will accommodate the vast array of people needed by the elderly - doctors, podiatrists, and the vast array providing services for the aged.

The elderly already have " Disability stickers " to designate cars with special permission for longer parking, but these will not provide permission for any sort of pick-up and set down arrangement.

The new " No stopping " regime may have merit, but it will create an impossible situation for the elderly and their carers unless the state government legislates to allow set down and pick-up to legally occur on bus stops and taxi ranks.

Just another case of hasty legislation being enacted - without thinking through the full consequences !

Sunday 23 November 2008

" Bunker " living !

The " silly season " is fast approaching, but it must be here already because an architect has won second prize in a competition for suggesting people empty their swimming pools and convert them into " granny flats ".

Australia will need 630,000 new homes by 2036 to accommodate the expected population increase. This suggestion is intended to reduce the need for a proliferation of towering apartment blocks.

There are 360,000 private swimming pools in New South Wales and it is suggested that these could easily be converted into one bedroom living space, with kitchenette, bathroom and lounge facilities. Windows would be located in the roof - and the existing family home would still have a nice garden.

The person making this suggestion may know a lot about architecture - but could do with improved knowledge of engineering and science.

For a start, there would be a danger that an empty swimming pool space would " float " if the surrounding soil became inundated with water. This is a phenomenon common to the fuel tanks of abandoned petrol stations.

Such a granny flat would also be claustrophobic.

Presumably it would need to have a toilet. In a flat land suburb it would be impossible to connect a toilet to the sewer from underground without an expensive pumping system.

Ventilation would be a problem - and any unventilated living space could be a health danger from the buildup of naturally occurring radioactive gases. These are known to cause cancer and other diseases.

Finally, access would be a stumbling block. " Granny flats " by their very nature are intended for the elderly - and one thing the elderly do not handle well is stairs.

It is unlikely that we will see a spate of swimming pools being converted into living accommodation - and if the forecasters are right and we are about to experience a sharp contraction in annual rainfall - those swimming pools may be needed in their natural state as a source of drinking water !

Saturday 22 November 2008

Parking Meters !

It seems that Wollongong has lost the plot when it comes to installing parking meters in the CBD.

Parking meters actually decrease the number of cars that can park in city streets. Each metered space has to be big enough to accommodate the largest car - and these days consumer demand is for compact cars.

There are no plans for additional parking stations or improvements to the bus service. Parking meters are a band aid solution which will drive shoppers away from the retail precinct.

There is actually a surplus of parking space in Wollongong. The problem is that this is taken up with city workers using all day street parking for the cars that brought them to work.

The ideal for shoppers and workers alike would be to park for as long as they like right at the door of Myers in Burelli street - or anywhere within a few paces walk of their place of employment.

Obviously this is impossible, so the council needs to take a bold step and increase the time restricted parking zone further from the city centre. It needs to create a disincentive for people to drive their cars, park and walk to their jobs.

It is a matter of priorities. People wishing to park and shop must take preference over people wishing to park and go to work. Most of the all day parking in this city is well within walking distance for shoppers. The problem is that it is not available because it is taken up by the all day parking crowd.

To make this work it would be necessary to provide a reasonable alternative to the worker/drivers - and the obvious way to do this is all day parking further from the CBD - but serviced by a feeder bus delivering workers to and from their area of employment.

It would be the carrot and stick approach. Restricted parking - enforced by rangers - in close areas that are now all day parking to force the all day parking crowd to embrace alternatives.

Compensation to be provided in the form of a free shuttle bus to eliminate the long walk from the parking zone to the place of work.

If this were to be implemented there would be no need for the expense and hassle of parking meters - and Wollongong would look less like Sydney - with all the problems associated with a big city !

Friday 21 November 2008

The stench of corruption !

The stench of corruption still hangs in the air over Wollongong council.

This time the spotlight shines on money spent to refurbish Lysaght Oval to provide a new home for this city's two soccer clubs. Just $ 400,000 remains of a $ 2.5 million grant - and yet the ground is nowhere near ready to be classed as a first rate facility.

The soccer people were forced to move from Brandon Park because it was needed by Wollongong University for their new industrial park. Lysaght Oval was to be their new home and Wollongong Council was appointed the trustee to arrange for the work to be done - and to manage the money.

Alarm bells began ringing when corruption was uncovered in dealings between Labor party councillors and developers involving political donations in exchange for the approval of development projects that did not meet council by-laws.

As a result, the council was sacked and administrators appointed - and in due course prosecutions may follow.

Pressure is building to untangle the can of worms relating to work done on Lysaght Oval. An un-named Sydney firm has been appointed to scrutinise invoices for work done - and to compare that work with the schedule promised in the contract.

All this seems to be happening under a cloak of secrecy - and many people are not happy about the lack of transparency.

Why is the name of the investigating firm being kept secret ? Is there any record of political donations between this firm and the state government ?

How was the work on Lysaght Oval allocated ? Was it awarded by public tender ?
Was this tender advertised ? Who drew up the specification of work required ? Who signed off that the work completed was satisfactory ?

The Administrators have failed to answer questions or give information !

Why ?

This is clearly in the public interest and the imposition of secrecy smells of a cover up !

The imposition of possible criminal charges over the sacking of Wollongong council looks like dragging on for months - and possibly years - and this leaves the impression that delay is part of the tactic for the matter to fade from public memory.

There is every reason that this latest fiasco should be dragged kicking and screaming into the public domain without delay.

On present indications, details will be kept hidden away and the legal system used to prevent public scrutiny !

Thursday 20 November 2008

The " Taser " question !

Ombudsman Bruce Barbour has expressed reservations about the $1 million roll out of Taser guns to New South Wales police.

The original benefit was that Tasers offered an alternative to the use of deadly force. They would only be used where circumstances warranted an office drawing his service weapon and firing it.

In such circumstances a Taser would temporarily disable a suspect and allow the placement of restraints.

It was argued that the discharge of electricity by a Taser would not seriously harm an adult person in good physical condition, wheras a police bullet would inflict at least serious injury and in many instances - death !

Originally, Tasers were issued in limited numbers and were only to be used by senior police who had undertaken specialist training in their use.

This imposed limitations. Deadly force situations occurred without warning and the first police on the scene were required to handle it. There would be delay problems trying to contact senior police, waiting while a Taser was collected from a police station and transported to the action scene.

It is now proposed that Tasers be a weapon issued to all front line officers and that they undergo special training in their use.

There is a question about their safety. Whilst they pose no risk to a person in good physical condition there have been instances of harm overseas when they have been used on people with heart problems, pacemakers or other debilitating medical conditions.

The Ombudsman is concerned that once issued Tasers will quickly become the weapon of choice when it comes to arrest situations that would not normally involve firearms.

Policing is a risky business. In particular, offenders affected by " Ice " pose special problems. They are extremely aggressive and are less responsive to pain - and have enhanced strength as a side effect of this drug.

Tackling them with batons and capsicum spray usually involves close combat and there is always the risk of infection. Offenders may be suffering AIDS or similar diseases and these can be transmitted from one person to another by way of a bite or transfer of blood.

The Ombudsman warns that there is the risk of Tasers being deployed outside the guidelines - with the police culture manipulating the arrest circumstances to justify their use.

There is reason on both sides of this argument. If the general roll out is to continue it is essential that all officers receive intensive training on their use - and there be rigid rules on how and when they can be used.

It is also essential that the firing of a Taser be subjected to the same enquiry that follows the discharging of a police firearm.

Unless this is done - we will get the worst of both worlds !

Wednesday 19 November 2008

The greedy versus the needy !

This morning sixty five thousand school and TAFE teachers will walk off the job for two hours to discuss and complain about an increased pay offer.

As a result, many working mothers will lose a days pay because their children will be otherwise unsupervised. Industry will take a hit from this absenteeism - and it will generally cost families and employers productivity.

What are teachers complaining about ? They have been offered an 11.8% pay increase spread over three years. Their salaries will increase 4.8% in January 2009, 3.5% in January 2010, and 2.7% in January 2011.

As a trade-off they will have paid sick leave days off reduced from a whopping twenty two per year - to ten. This will then bring them into line with the rest of the public service.

It seems that these citizens of academia live in a fuzzy little world far removed from the realities affecting ordinary people.

In the present economic climate a pay rise is something most working people only dream about.

We are facing the prospect of the worst recession since the 1930's - and that it something that could easily slip into a full blown depression. Just retaining ones present job would be a big relief to many.

What is the justification for twenty two sick days a year ? The " sickie " is an Australian institution and many people make sure they use all of their entitlements and regard them as extra " holidays ".

There may be a few grim years ahead of us and teachers may find that these hard times intrude on their militant outlook.

Some may have to work a bit longer than the usual retirement age, and class sizes may blow out because there is simply not enough money to pay the present teaching workforce.

Welcome to the real world !

Tuesday 18 November 2008

Insurance.

The concept of insurance originated in China centuries ago. Merchants taking their produce to market faced the prospect of ruin when crossing raging rivers.
Should their boat overturn they would lose everything.

A wise man solved this problem by advising travellers to distribute their goods as cargo in many boats. Some might be lost but the majority would survive - and hence each merchant would only suffer a small loss.

This weeks disaster in Brisbane brings home the wisdom of that theory - except that not all people there will be covered by insurance.

Insuring homes, boats, cars and other valuables is optional and those that do insure are slugged with various taxes - including a hefty levy to finance the fire brigade.

When a disaster strikes - as happened in Brisbane - those uninsured cry poverty and the various charities join the Federal and state governments in donating funds to alleviate stress. The loss is not fully covered, but at least those who can least afford it get relief.

The insurance option is not really fair to those to choose to pay premiums and have security. Those that opt out do not pay their share, and consequently premiums are higher than if all were covered.

According to the forecasters global warming will result in an increase in severe storms - and consequent damage to private property. Perhaps this would be a good time to have a long, hard look at the question of insurance.

Perhaps all real estate needs to be covered by a basic insurance against fire, flood and destruction by severe storm. This cover would need to be an inclusion by each council - with the premium forming part of the rates.

Failure to pay would attract the same recourse as the present system used to recover rate arrears.

The advantage is that there would be basic cover for all property with owners having the option to take out private insurance to cover losses from burglary and similar events.

There would also be the advantage that those renting would be assured that there was money available to restore their dwelling after a storm, rather than rely on the owner to have the finances to carry out repairs.

A universal base cover should even out premiums for those wise enough to have private insurance and allow owners to select top up cover to suit their individual requirements.

If we are to get more severe storms because of climate change we need to review our insurance options to reduce the chance of many being left destitute !

Monday 17 November 2008

Death of a club.

Things do not look good for Wollongong's troubled Fraternity club. It has a huge debt at an impossible interest rate, infighting at board level - and it's most valuable asset has been downgraded by a council decision.

Fifty years ago the Wollongong Italian community built this club as a place to preserve the Italian way of life. It served good Italian food, played peculiar Italian sporting games - and was a congenial meeting place where people of Italian background could entertain their Australian friends.

The club prospered and over time bought out neighbouring houses to create one of the biggest club car parks in this state - but things went downhill from there. An ambitious expansion plan saw cost overruns and inflation create an unfinished building programme and unsustainable debt.

There have been several remedial plans, all frustrated by an inability to create a board with financial skills. Elements within the club wish to preserve a culture incompatible with the management stresses of a modern club - and there is now a chance that it will go out of existence.

The saving grace could have been the huge amount of car space right alongside a fast developing shopping precinct. There were offers to buy this and lease some back to the club - while development on other sections would ensure viability.

This was scuttled when Wollongong council declared it flood prone land - and indicated that building approval would be refused.

It seems strange that just a few hundred yards away - on perfectly flat land - there is a huge new shopping centre with underground parking nearly completion.

If the club car park is flood prone, what will happen to that new complex and it's underground car park should a deluge occur ?

There may be politics at work in this scenario. Customer parking will be a big issue when the Fairy Meadow shopping expansion is complete. The Fraternity club car park will have little value if it is denied development, but it would solve a lot of problems if it could be cheaply acquired to provide car parking for the expanding shopping centre.

This seems to be a complicated chess board - where a lot of competing interests are in play !

Sunday 16 November 2008

Putting a fee on blood ?

That bunch of incompetent crooks masquerading as the New South Wales government are reportedly considering charging a fee for blood.

The blood bank in this country is run by the Red Cross and hundreds of thousands of citizens are regular donors - rewarded at the end of each session by a cuppa and a few biscuits.

Their blood is available at no cost to the medical profession for those who need it. Without blood the majority of surgery would not be possible.

The government is considering leaving it free for public hospitals, but charging private hospitals. This charge would be cleverly disguised so as to not refer directly to a blood fee, but would instead be called an " administrative charge ".

Whatever name this new " tax " is called, it would be a charge on private hospitals and would either directly go onto patients bills or go against their insurance fund. In either case - it would increase health costs.

It could be the first step on a slippery slope. Donors who support the blood bank could well walk away once they knew that their donation was now being treated as just another source of government revenue.

Our blood bank is a fine and revered institution. Do we want it become like many overseas countries - where people sell their blood for money - and as a result blood is the price of the next heroin hit for addicts - or the means of putting food on the table for the children of the poor ?

Once the political party in office in this state was the defender of the working man and woman.

It has lost it's way. Ben Chifley's famous " Light on the Hill " is in danger of being extinguished because his party is now so concerned with money that it considers it an extravagance !

Saturday 15 November 2008

Demerit points !

A long time ago the only penalty for speeding was a hefty fine. These fines increased on a regular basis as politicians tried to convince voters that they were trying to make our roads safer.

The problem was that fines did not deliver equality of punishment. What was a trifling amount to a rich man was a crushing blow to someone on the minimum wage - and so demerit points were devised to provide a level playing field.

Rich or poor. Accumulate enough points and you lose your driving license.

It was a good idea, but it was quickly corrupted. Loss of points were added for a whole range of minor offences, many of which had little impact on road safety - and then came that electronic marvel - the fixed speed camera.

Suddenly it was a whole new ball game. School zones had varying speed limits at varying times and in general these " revenue raisers " recorded people minutely over the limit - and dished out both fines and the loss of demerit points.

The problem was that the penalty was the same for one or two kph over the limit - or up to fifteen kph over the limit - a loss of three demerit points which doubled if it happened during a public holiday weekend.

License loss often meant job loss - and this contributed to a sharp increase in those still driving on a cancelled license, depriving other road users of insurance protection and causing a degree of public resentment at what was considered an " unjust law ".

Now there are moves to vary this demerit point loss to recognise the degree of speeding.

It is a welcome application of common sense, but it would also be appropriate to give demerit points generally a long, hard look.

Is picking up or setting down a passenger on a bus stop or a loading zone such a heinous crime to deserve potential loss of license ?

Many would think not !

Friday 14 November 2008

Insanity !

For forty four years various governments of New South Wales have adhered to the policy of running double deck rail carriages on the Sydney transport system.

Why ? Because they carry twice the number of passengers than single deck carriages.

We are in the middle of a $ 9.5 billion contract to build and buy 626 new double deck carriages to relieve the chronic shortage of rolling stock that is crippling commuter use of trains.

Yesterday, Transport minister - and minister for the Illawarra - David Campbell announced a change of plan.

The state government has changed it's mind - and will now change to single deck carriages.

No reason has been given for this flight of insanity - but it will obviously cost many billions to replace the existing stock of 1600 double deck carriages, plus at least another $ 5 billion to upgrade the signalling system to accommodate the new trains.

All this at a time when the state is in a deep financial hole and has just cancelled the proposed " Metro " to service south western Sydney.

It has been stated by many that this government would be hard pressed to successfully raffle a duck !

It might be an act of kindness if it resigned, called an early election and retired it's ministers to a psychiatric institution - provided there is still one surviving the latest cost cutting purge !

Thursday 13 November 2008

Coal trucks.

It is suggested that restrictions be lifted to allow the movement of coal to be on a 24/7 basis. At present night movement and transport on Sundays is banned to give residents a respite from noise and dust.

The reaction of residents seems to depend on their place of residence. Those who live near a main road coal route obviously fear their sleep being disturbed by exhaust braking and the general noise of heavy trucks.

The majority of Wollongong residents would be unaffected.

It does make sense to distribute the movement of heavy trucks over a twenty-four hour period rather than forcing them to add to peak hour and normal time day traffic.
The road system is almost deserted during the early hours and this should suit truck drivers. It would bring easier driving conditions - and with the lack of traffic jams would come an increase in the number of deliveries achieved.

There is also the coming road problems of the Port Kembla expansion. We will shortly see a huge expansion of truck movements when both the container and imported car trade is centred on this port - and the present restrictions only apply to coal trucks.

If the government extended night and Sunday movement bans to all trucks in this area the port expansion would become unworkable. We would see gridlock at peak times.

The only logical way out of this problem is to bite the bullet and remove the ban on night and Sunday coal truck movements.

Those that live beside a busy main highway will just have to learn to live with it !