The decision by Pacific Brands to sack 1850 employees - 281 of them in Wollongong - and move operations offshore to low pay regime China has thrown the spotlight on executive salaries.
Pacific Brands CEO received a pay upgrade of three times her original salary when she got the top job in the company, bringing her renumeration to about $ 1.8 million.
Many consider this level " outrageous ", but in all fairness it is probably a reasonable level considering the responsibility involved in heading up a company of the size and complexity of Pacific Brands.
Compare that with the CEO of Telstra - who gets about $ 13 million a year - and the CEO of Macquarie Bank - who gets even more. These pale into insignificance compared with the pay showered on the CEO's and directors of many overseas corporations. Is any human being worth that amount of money ?
Malcolm Turnbull of the Liberal party suggests making any pay offer subject to the approval of shareholders at the annual general meeting of the company.
Sounds good in theory - but there is a real danger of human emotions being used as a weapon and good companies facing the impossibility of attracting a highly skilled CEO because of an unreasonable pay level being imposed.
A tactic previously used by protest organizations such as Greenpeace and PETA has been to buy at least one share in a target organization. This allows a representative to legally attend an AGM and address the board, presenting whatever grievance is current.
A skilled orator could easily sway Mum and Dad investors to howl down a reasonable pay offer and cripple the chances of a vibrant company from attracting the right applicant.
The problem is that executive renumeration is steadily rising and in many cases has reached unreasonable levels. What irks many people is that huge salaries are often being paid to CEO's and board members of companies which are performing poorly - and in some cases making incredible losses. When a failed CEO quits the scene - in many cases he or she departs with a " golden parachute " of millions.
The government has little legal room to control salaries, except within the domain of government organizations. It is the private sector which must show restraint and reign in excess, but the only way to create a level playing field seems to lay with the media.
The watch dog would seem to be the financial guru's who oversee company results. They are the very people best equipped to determine what is fair renumeration in any given situation, and their comment in the financial pages of newspapers should be a guide for investors considering that company.
In the end it comes down to the little people who buy shares. If a company is vastly over paying it's top people - then that is a good indication to avoid investing.
Reputation and prospects are the lure for investors money, and if a company is getting a bad press because of huge extravagances that should become the mechanism for creating discipline.
Public approval is the formulae for electing governments ! It should also be the tool for disciplining the decisions of public companies !
Saturday 28 February 2009
Friday 27 February 2009
A changeing lifestyle !
Way back in 1956 when television started in Australia many pundits suggested that the era of newspapers was doomed. They were wrong !
What they failed to take into account was that television news is composed of short " bites " with no backup substance. Newspapers on the other hand, treat the subject in depth and this appeals to serious readers.
Now it seems that newspapers are again under threat, this time from a combination of the economic downturn - and the Internet !
Newspapers have been steadily increasing in subscription price and this - balanced against advertising income - is the key to profitability. Inflation will continue to increase the cost of newsprint, ink and labour and at the same time the recession has sharply reduced the pool of advertisers.
Job losses and the fragile economy will see many people cut back discretionary expenditure - and having a daily newspaper delivered is sure to be one of the costs to be reviewed.
The number of households with a computer has been steadily increasing and the ratio of people computer literate expands as the age demographic inches upward. This is where the threat to newspapers increases.
It is one of life's ironies that most newspapers can be read free on-line. It seems a natural progression in hard times that the savvy will cut out paying for something that they can view free.
The newspaper world is worried - and looking enviously at Steve Jobs successful innovation of persuading music fans to pay one dollar a tune to download music - and Jeff Bezoz scheme to sell electronic versions of books and novels.
It seems a natural progression that the delivered daily paper will change format and present an abbreviated form of news - with the invitation to pay a small subscription to view a vastly expanded news service on their on-line format. Serious thought is being given to devising a means of charging for access.
We will probably see some daily papers contract to a thrice weekly edition, and many may cease publication entirely.
Advertising will still play a big part in profit and cost, but change is on the way and a decade from now the newspaper world will be vastly changed from the present.
Whether that is a sign of progress will be a moot point !
What they failed to take into account was that television news is composed of short " bites " with no backup substance. Newspapers on the other hand, treat the subject in depth and this appeals to serious readers.
Now it seems that newspapers are again under threat, this time from a combination of the economic downturn - and the Internet !
Newspapers have been steadily increasing in subscription price and this - balanced against advertising income - is the key to profitability. Inflation will continue to increase the cost of newsprint, ink and labour and at the same time the recession has sharply reduced the pool of advertisers.
Job losses and the fragile economy will see many people cut back discretionary expenditure - and having a daily newspaper delivered is sure to be one of the costs to be reviewed.
The number of households with a computer has been steadily increasing and the ratio of people computer literate expands as the age demographic inches upward. This is where the threat to newspapers increases.
It is one of life's ironies that most newspapers can be read free on-line. It seems a natural progression in hard times that the savvy will cut out paying for something that they can view free.
The newspaper world is worried - and looking enviously at Steve Jobs successful innovation of persuading music fans to pay one dollar a tune to download music - and Jeff Bezoz scheme to sell electronic versions of books and novels.
It seems a natural progression that the delivered daily paper will change format and present an abbreviated form of news - with the invitation to pay a small subscription to view a vastly expanded news service on their on-line format. Serious thought is being given to devising a means of charging for access.
We will probably see some daily papers contract to a thrice weekly edition, and many may cease publication entirely.
Advertising will still play a big part in profit and cost, but change is on the way and a decade from now the newspaper world will be vastly changed from the present.
Whether that is a sign of progress will be a moot point !
Thursday 26 February 2009
The agony and the ecstacy !
Today two very different events took place in Australia.
One thousand, eight hundred employees of garment manufacturer Pacific Brands learned that they will be unemployed because their firm is moving manufacturing to China.
Pacific Brands is the source of iconic Australian clothing labels such as King Gee, Berlei and Bonds.
In the five years since 2000 the Federal government has injected $ 72 million to prop up local garment manufacturing by Pacific Brands, but the economic recession has proven to be the last straw, making the low wage regime of China irresistible.
Sadly, the demise of the Bellambi unit this July will be followed by the closure of Unanderra in February of next year, leaving two hundred and eighty one Illawarra people out of work - from 1850 people to be retrenched Australia wide.
The vast majority of the Pacific Brands employees are women and they are highly skilled cutters and machinists. There is almost no chance of a similar job utilising these skills in the almost defunct Australian clothing industry.
No doubt the government will offer retraining schemes, but the big question will be - " Retraining for what purpose ? "
It is obvious that this closure announcement is just the tip of an unemployment iceberg ! If there are more people looking for work than jobs offering it is hard to see how retraining can increase job opportunities overall !
At the same time Pacific Brands employees are digesting this bitter news the port of Sydney is welcoming the world's biggest and newest cruise liner , the Queen Mary 2.
This floating palace is on a ninety day world cruise with fares for lucky passengers around the $ 26,000 per person mark.
There are still wealthy people in this country and many have decided that the wise course is to spend some of it - while it still has value !
There are grim times ahead as more of the Australian work force will find out in the months ahead, and many economists are keeping very quiet about the almost certainty that the world will face a huge round of inflation.
The developed countries are going heavily into deficit to try and cushion this recession and in all probability that debt will become beyond their capacity to repay. When that happens, logic dictates that inflation will run out of control, bankrupting those on superannuation and those who put money aside for a rainy day - but increasing taxes and government income - and shrinking the amount owed.
Perhaps those about to be handed a pink slip should indulge themselves with their termination payments - rather than wait to watch it shrink to nothing before their eyes !
One thousand, eight hundred employees of garment manufacturer Pacific Brands learned that they will be unemployed because their firm is moving manufacturing to China.
Pacific Brands is the source of iconic Australian clothing labels such as King Gee, Berlei and Bonds.
In the five years since 2000 the Federal government has injected $ 72 million to prop up local garment manufacturing by Pacific Brands, but the economic recession has proven to be the last straw, making the low wage regime of China irresistible.
Sadly, the demise of the Bellambi unit this July will be followed by the closure of Unanderra in February of next year, leaving two hundred and eighty one Illawarra people out of work - from 1850 people to be retrenched Australia wide.
The vast majority of the Pacific Brands employees are women and they are highly skilled cutters and machinists. There is almost no chance of a similar job utilising these skills in the almost defunct Australian clothing industry.
No doubt the government will offer retraining schemes, but the big question will be - " Retraining for what purpose ? "
It is obvious that this closure announcement is just the tip of an unemployment iceberg ! If there are more people looking for work than jobs offering it is hard to see how retraining can increase job opportunities overall !
At the same time Pacific Brands employees are digesting this bitter news the port of Sydney is welcoming the world's biggest and newest cruise liner , the Queen Mary 2.
This floating palace is on a ninety day world cruise with fares for lucky passengers around the $ 26,000 per person mark.
There are still wealthy people in this country and many have decided that the wise course is to spend some of it - while it still has value !
There are grim times ahead as more of the Australian work force will find out in the months ahead, and many economists are keeping very quiet about the almost certainty that the world will face a huge round of inflation.
The developed countries are going heavily into deficit to try and cushion this recession and in all probability that debt will become beyond their capacity to repay. When that happens, logic dictates that inflation will run out of control, bankrupting those on superannuation and those who put money aside for a rainy day - but increasing taxes and government income - and shrinking the amount owed.
Perhaps those about to be handed a pink slip should indulge themselves with their termination payments - rather than wait to watch it shrink to nothing before their eyes !
Wednesday 25 February 2009
Entering a new world !
A huge amount of money is being spent by world government's to try and head off a catastrophic depression. The expectation of ordinary citizens is that when the dust settles the banks will be lending again, industry will be hiring workers - and the world will have returned to where it was at the start of 2008.
That will not happen. Talk to the old timers who survived the " Great Depression " of the 1930's and they will tell you that the recovery was the start of a new era.
The second world war was blamed for and had an influence of changing times, but much of that change was evolutionary. For the first time women participated in the workforce - and now a woman with children as a " stay at home ", unemployed housewife has become a rarity.
Social classes levelled out. Prior to the 1930's the education of country children ended at grade school - and thus the professions were out of reach. Many city kids left school at fifteen and were absorbed by industry as labourers. The rate of pay was strictly governed by age - and women received just sixty percent of the male rate of pay.
The era of car ownership got under way - and with the start of the jet age travel became affordable to the masses for the first time.
Many aspects of the world we knew will not recover from this economic downturn - but human ingenuity will create new opportunities - and new ways of doing things. It is simply a matter of disaster for many introducing the catalyst of change.
It would be a brave person to try and describe the new world that will emerge. To many people this change will seem a natural event - much as the critical years of change during the 1950's seemed quite normal to folk at that time.
What does seem certain is that our evolvement from this fiscal crash will merely accelerate the pressure of change that was building to a head before a corrupt monetary system introduced " toxic bonds " - and brought down the house of cards.
There was a certain inevitability about this recession hovering on the fringe of depression. The period ahead will not be comfortable for many, but an era has passed and new opportunities for the wise will soon be apparent.
The casualties will be those who - for one reason or another - reject change !
That will not happen. Talk to the old timers who survived the " Great Depression " of the 1930's and they will tell you that the recovery was the start of a new era.
The second world war was blamed for and had an influence of changing times, but much of that change was evolutionary. For the first time women participated in the workforce - and now a woman with children as a " stay at home ", unemployed housewife has become a rarity.
Social classes levelled out. Prior to the 1930's the education of country children ended at grade school - and thus the professions were out of reach. Many city kids left school at fifteen and were absorbed by industry as labourers. The rate of pay was strictly governed by age - and women received just sixty percent of the male rate of pay.
The era of car ownership got under way - and with the start of the jet age travel became affordable to the masses for the first time.
Many aspects of the world we knew will not recover from this economic downturn - but human ingenuity will create new opportunities - and new ways of doing things. It is simply a matter of disaster for many introducing the catalyst of change.
It would be a brave person to try and describe the new world that will emerge. To many people this change will seem a natural event - much as the critical years of change during the 1950's seemed quite normal to folk at that time.
What does seem certain is that our evolvement from this fiscal crash will merely accelerate the pressure of change that was building to a head before a corrupt monetary system introduced " toxic bonds " - and brought down the house of cards.
There was a certain inevitability about this recession hovering on the fringe of depression. The period ahead will not be comfortable for many, but an era has passed and new opportunities for the wise will soon be apparent.
The casualties will be those who - for one reason or another - reject change !
Tuesday 24 February 2009
An era ends !
It is interesting to think back to that time several decades ago when New South Wales was the only Australian state that permitted poker machines.
Border cities like Albury/Wodonga experienced convoys of buses bringing Victiorians for a " flutter " on the machines. In Sydney, St Georges Leagues club was the place locals took visitors to be amazed at the splendour.
The club era at it's height provided luxury that was beyond imagination for those from other states. Meals were heavily subsidized and the level of entertainment rivalled the great cities of the world - and all for a few dollars and often for no charge at all.
This was funded by the profits from poker machines. The churches and the anti-gambling establishnment railed and protested, but squandering a few dollars in the hope of a big win made people happy, and the clubs returned that money by sponsoring sporting teams - and importantly - bank rolling much of the social infrastructure that was the glue holding society together.
Then government greed began to destroy that source of profit. Poker machine taxes became confiscatory under the Bob Carr regime, followed by anti-smoking legislation that further reduced patronage.
Now the results are evident. The plethora of " little clubs " that used to be part of the suburban landscape - bowling clubs and social clubs - is withering and fast dieing. Some are making desperate efforts to keep their heads above water by merging, but the numbers are dwindling - and few can report even a break-even balance sheet.
The days of the big clubs are shortening. The mighty St Geoges Leagues club in Sydney is a mere shadow of it's former glory - and here in Wollongong Fraternity club looks to be close to closing it's doors.
The latest bad news is that Corrimal Leagues club is now in administration.
A few may survive, but because of government greed - and the recession fast changing the landscape - the days of a great meal at a very cheap price - followed by world class entertainment - is over !
Many will remember this past era as " the good old days ". Could it's passing have something to do with the vicious street fighting and gang brawling that is emerging as the new form of entertainment ?
That is a question future historians will ponder !
Border cities like Albury/Wodonga experienced convoys of buses bringing Victiorians for a " flutter " on the machines. In Sydney, St Georges Leagues club was the place locals took visitors to be amazed at the splendour.
The club era at it's height provided luxury that was beyond imagination for those from other states. Meals were heavily subsidized and the level of entertainment rivalled the great cities of the world - and all for a few dollars and often for no charge at all.
This was funded by the profits from poker machines. The churches and the anti-gambling establishnment railed and protested, but squandering a few dollars in the hope of a big win made people happy, and the clubs returned that money by sponsoring sporting teams - and importantly - bank rolling much of the social infrastructure that was the glue holding society together.
Then government greed began to destroy that source of profit. Poker machine taxes became confiscatory under the Bob Carr regime, followed by anti-smoking legislation that further reduced patronage.
Now the results are evident. The plethora of " little clubs " that used to be part of the suburban landscape - bowling clubs and social clubs - is withering and fast dieing. Some are making desperate efforts to keep their heads above water by merging, but the numbers are dwindling - and few can report even a break-even balance sheet.
The days of the big clubs are shortening. The mighty St Geoges Leagues club in Sydney is a mere shadow of it's former glory - and here in Wollongong Fraternity club looks to be close to closing it's doors.
The latest bad news is that Corrimal Leagues club is now in administration.
A few may survive, but because of government greed - and the recession fast changing the landscape - the days of a great meal at a very cheap price - followed by world class entertainment - is over !
Many will remember this past era as " the good old days ". Could it's passing have something to do with the vicious street fighting and gang brawling that is emerging as the new form of entertainment ?
That is a question future historians will ponder !
Monday 23 February 2009
Nuclear hysterics !
" The sky is falling ! "
Chicken Little is running around in ever decreasing hysterical circles. We humans are doomed ! The end is upon us !
Relax ! It's just the usual politics !
A few fuel rods at the Lucas Heights nuclear reactor have served their purpose and will be sent overseas for reprocessing. To get from the plant to be loaded on a ship they will have to be transported to a port - and in this case the port will most likely be Port Kembla.
Just 159 used fuel rods will be packed into four stainless steel casks - and these will be transported in four shipping containers on semi-trailer trucks escorted by police during a low traffic time of the day or night.
It is normal procedure. It has been done before on several occasions without incident, although at those times the ships were docked at Port Botany. This unremarkable procedure has never been carried out without hysteria from the Greens and the " gloom and doom " people !
Greens leader Lee Rhiannon leads a political party that is stridently anti-nuclear. Despite nuclear power generation being used by France, Britain, the US and other major countries and releasing no global warming carbon - the Greens oppose nuclear power in Australia.
They maintain a ceaseless tirade, warning of danger. There is more chance of a petrol tanker crashing and exploding than an accident happening to a nuclear convoy carrying specially designed protective containers, with an armed escort - and travelling at low speed.
Sleep well, citizens of the Illawarra. This fuel rod transfer will pass unnoticed as has happened on previous occasions.
But - while it takes place - our power generators will continue to pollute the atmosphere with Co2 - and if the scientists are right - the polar ice caps will continue to melt and the sea levels will rise.
Half a century from now - when we watch seaside suburbs reclaimed by the ocean - maybe we will reflect on the folly of taking notice of Chicken Little's hysterical outbursts !
Chicken Little is running around in ever decreasing hysterical circles. We humans are doomed ! The end is upon us !
Relax ! It's just the usual politics !
A few fuel rods at the Lucas Heights nuclear reactor have served their purpose and will be sent overseas for reprocessing. To get from the plant to be loaded on a ship they will have to be transported to a port - and in this case the port will most likely be Port Kembla.
Just 159 used fuel rods will be packed into four stainless steel casks - and these will be transported in four shipping containers on semi-trailer trucks escorted by police during a low traffic time of the day or night.
It is normal procedure. It has been done before on several occasions without incident, although at those times the ships were docked at Port Botany. This unremarkable procedure has never been carried out without hysteria from the Greens and the " gloom and doom " people !
Greens leader Lee Rhiannon leads a political party that is stridently anti-nuclear. Despite nuclear power generation being used by France, Britain, the US and other major countries and releasing no global warming carbon - the Greens oppose nuclear power in Australia.
They maintain a ceaseless tirade, warning of danger. There is more chance of a petrol tanker crashing and exploding than an accident happening to a nuclear convoy carrying specially designed protective containers, with an armed escort - and travelling at low speed.
Sleep well, citizens of the Illawarra. This fuel rod transfer will pass unnoticed as has happened on previous occasions.
But - while it takes place - our power generators will continue to pollute the atmosphere with Co2 - and if the scientists are right - the polar ice caps will continue to melt and the sea levels will rise.
Half a century from now - when we watch seaside suburbs reclaimed by the ocean - maybe we will reflect on the folly of taking notice of Chicken Little's hysterical outbursts !
Sunday 22 February 2009
A clear way on the air way !
It's not often that governments do something intelligent - but it seems that the air space between Australia and New Zealand may soon be termed a " domestic border ".
Instead of the usual long delays once a traveller enters either country there will be no need to front customs, have your bag searched or go through those interminable checks that officialdom seem to delight in applying.
The details have yet to be verified, but it may well first apply to tourist flights where all the passengers are exclusively Australian or New Zealand citizens.
In such cases customs clearance will happen at the point of departure, rather than at the point of arrival.
The idea is not new. It is in place for travellers between the United States and Canada and it has obvious benefits in time saved when arrival means simply getting off the plane - and walking away !
It may be extended to travellers of other nationalities and there seems no good reason why the formalities necessary on arrival could not be carried out prior to departure from either country.
In difficult economic times anything that improves travel and makes a holiday across the Tasman more attractive has to be a plus. Lets hope the bureaucracy can streamline procedures and make air travel a hassle free experience !
Instead of the usual long delays once a traveller enters either country there will be no need to front customs, have your bag searched or go through those interminable checks that officialdom seem to delight in applying.
The details have yet to be verified, but it may well first apply to tourist flights where all the passengers are exclusively Australian or New Zealand citizens.
In such cases customs clearance will happen at the point of departure, rather than at the point of arrival.
The idea is not new. It is in place for travellers between the United States and Canada and it has obvious benefits in time saved when arrival means simply getting off the plane - and walking away !
It may be extended to travellers of other nationalities and there seems no good reason why the formalities necessary on arrival could not be carried out prior to departure from either country.
In difficult economic times anything that improves travel and makes a holiday across the Tasman more attractive has to be a plus. Lets hope the bureaucracy can streamline procedures and make air travel a hassle free experience !
Saturday 21 February 2009
Death trap !
For the past two weeks citizens have viewed harrowing pictures of the death and destruction wreaked by the Victorian bushfires. At the same time they must wonder when we will suffer a similar fate from the magnificent forests cascading down from the escarpment to the coastal plain.
It is not a matter of " if " the escarpment forests will burn. It is simply a matter of " when " - and all it will take is the right weather conditions - the right fierce winds - and a spark !
What is almost unbelievable is that Wollongong has no early warning system - and no escape plan to evacuate citizens from monstrous fire storms.
The most vulnerable are those living in the seaside villages from Bulli Pass to Stanwell Park. Residents of Coledale, Coalcliff, Wombarra, Scarborough, Austinmer and Thirroul have only one road offering escape - Lawrence Hargreave Drive !
We already know what happens when overload occurs - as example that thunderstorm that cleared the beaches - and resulted in a traffic jam that took hours to clear.
The fire people urge householders to have a fire plan and drill all members on safely evacuating in a fire - and yet Wollongong Council and the members of parliament who represent this area have made no attempt to devise such a plan or put such a plan into practice.
We need two things - and we need them urgently. This year's fire season is not over and global warming has increased the danger - and extended the likely time frame.
We need a warning system to alert residents near the escarpment forests that they need to leave their homes and take shelter - and we need an evacuation plan to ensure that this can happen in an orderly manner.
Like that household fire drill - this plan needs to be well publicised and known to the people who live with fire danger. It may well be the only difference between survival and death !
A fire roaring down the escarpment similar to the fires in Victoria would be unstoppable - no matter what fire trucks and equipment were deployed. When it happens we will certainly lose a large number of homes - and sufffer the misery that will cause - but loss of life can be prevented - or at least sharply reduced.
All it would take is good forward planning - and that is what is missing - and doesn't even appear to be a priority with those we elected to represent us !
It is not a matter of " if " the escarpment forests will burn. It is simply a matter of " when " - and all it will take is the right weather conditions - the right fierce winds - and a spark !
What is almost unbelievable is that Wollongong has no early warning system - and no escape plan to evacuate citizens from monstrous fire storms.
The most vulnerable are those living in the seaside villages from Bulli Pass to Stanwell Park. Residents of Coledale, Coalcliff, Wombarra, Scarborough, Austinmer and Thirroul have only one road offering escape - Lawrence Hargreave Drive !
We already know what happens when overload occurs - as example that thunderstorm that cleared the beaches - and resulted in a traffic jam that took hours to clear.
The fire people urge householders to have a fire plan and drill all members on safely evacuating in a fire - and yet Wollongong Council and the members of parliament who represent this area have made no attempt to devise such a plan or put such a plan into practice.
We need two things - and we need them urgently. This year's fire season is not over and global warming has increased the danger - and extended the likely time frame.
We need a warning system to alert residents near the escarpment forests that they need to leave their homes and take shelter - and we need an evacuation plan to ensure that this can happen in an orderly manner.
Like that household fire drill - this plan needs to be well publicised and known to the people who live with fire danger. It may well be the only difference between survival and death !
A fire roaring down the escarpment similar to the fires in Victoria would be unstoppable - no matter what fire trucks and equipment were deployed. When it happens we will certainly lose a large number of homes - and sufffer the misery that will cause - but loss of life can be prevented - or at least sharply reduced.
All it would take is good forward planning - and that is what is missing - and doesn't even appear to be a priority with those we elected to represent us !
Friday 20 February 2009
SuperClinic !
The go-ahead has been given for Shellharbour's new SuperClinic and this will become reality in the months ahead. It is badly needed. Shellharbour has a General Practicioner to resident numbers ratio of 6596, way out of line with other Illawarra areas.
The tender has been awarded to the Illawarra Division of General Practice. As a result, it will be manned by the existing pool of GP's, but those manning the clinic will be restricted to six half day sessions a week to distribute the load and ensure practices in other suburbs are maintained.
And that is where a disturbing aspect seems to be emerging.
The most important content of general practice is the bond between doctor and patient. Most people have the same GP look after their health and as a consequence that medical practicioner knows them and their ailments intimately. They consult whenever a new symptom appears and they attend regularly to have scripts renewed - hence they are under regular review.
It sounds like the SuperClinic is going to be a " take a number and see whichever doctor is allocated to you "
There is a similarity between that and the public hospital system - and if that happens that bond between doctor and patient will be the first casualty.
There is every chance that a patient attending the SuperClinic may be seen by a doctor who impresses them sufficiently that they travel to where that doctor's practice is situated to maintain that bond.
The whole idea of the SuperClinic is to amass a pool of doctors to service a population group that is presently dangerously under serviced.
It will certainly achieve that objective - but at the cost of rupturing the intimate doctor/patient bond that is the main plank of general practice.
Unfortunately this seems to be the way the world is heading with rising population numbers - and a scarcity of services !
The tender has been awarded to the Illawarra Division of General Practice. As a result, it will be manned by the existing pool of GP's, but those manning the clinic will be restricted to six half day sessions a week to distribute the load and ensure practices in other suburbs are maintained.
And that is where a disturbing aspect seems to be emerging.
The most important content of general practice is the bond between doctor and patient. Most people have the same GP look after their health and as a consequence that medical practicioner knows them and their ailments intimately. They consult whenever a new symptom appears and they attend regularly to have scripts renewed - hence they are under regular review.
It sounds like the SuperClinic is going to be a " take a number and see whichever doctor is allocated to you "
There is a similarity between that and the public hospital system - and if that happens that bond between doctor and patient will be the first casualty.
There is every chance that a patient attending the SuperClinic may be seen by a doctor who impresses them sufficiently that they travel to where that doctor's practice is situated to maintain that bond.
The whole idea of the SuperClinic is to amass a pool of doctors to service a population group that is presently dangerously under serviced.
It will certainly achieve that objective - but at the cost of rupturing the intimate doctor/patient bond that is the main plank of general practice.
Unfortunately this seems to be the way the world is heading with rising population numbers - and a scarcity of services !
Thursday 19 February 2009
A common standard.
The good news is that the makers of mobile phones have agreed to settle on a common standard, one model of transformer recharging device. No longer will there be a different charger - with different sized plugs to suit each model of mobile phones - and in some instances, different chargers for each of that maker's range of models.
That's good old common sense, but it still has a long way to go. A common standard could be applied to an enormous range of products used in the electrical, hardware, motor vehicle and appliance industries.
It would take the hassle out of finding replacement and repair items, and it should reduce prices by eliminating a big holding of different stock for merchants.
Another product that urgently needs rationalization is the pharmaceutical industry.
A research firm develops a new drug and it enters the market under that name. The patent eventually runs out and generic copies flood the market - and a whole number of new names are applied to that common drug.
Pity help the aged and infirm. Chemists supplying generic scripts often make rapid changes of suppliers - depending on the discounts offered - and as a result the user often gets a completely new named drug each time a script is filled.
Each generic drug does contain the chemical name of the contents, but most patients don't look further than the primary name on the packet. This opens the opportunity for mishap - and with the powerful drugs on the market today - the chance of a serious accident or even death.
Let us hope that the wisdom of the mobile phone manufacturers will not just end with their product. Now would be a good time for the government to step in and devise standards to eliminate the confusion duplication brings.
The opportunities for progress are amazingly broad !
That's good old common sense, but it still has a long way to go. A common standard could be applied to an enormous range of products used in the electrical, hardware, motor vehicle and appliance industries.
It would take the hassle out of finding replacement and repair items, and it should reduce prices by eliminating a big holding of different stock for merchants.
Another product that urgently needs rationalization is the pharmaceutical industry.
A research firm develops a new drug and it enters the market under that name. The patent eventually runs out and generic copies flood the market - and a whole number of new names are applied to that common drug.
Pity help the aged and infirm. Chemists supplying generic scripts often make rapid changes of suppliers - depending on the discounts offered - and as a result the user often gets a completely new named drug each time a script is filled.
Each generic drug does contain the chemical name of the contents, but most patients don't look further than the primary name on the packet. This opens the opportunity for mishap - and with the powerful drugs on the market today - the chance of a serious accident or even death.
Let us hope that the wisdom of the mobile phone manufacturers will not just end with their product. Now would be a good time for the government to step in and devise standards to eliminate the confusion duplication brings.
The opportunities for progress are amazingly broad !
Wednesday 18 February 2009
The new drug - Cane toads !
We have been trying to find a way to eradicate Cane Toads since their introduction to this country decades ago. Nothing has worked - and they are on their way to invading Kakadu - and eventually they will make a home in Sydney.
Now the police have a new problem on their hands. Cane Toads may be the next big thing in the drug trade !
Iran reports that drug users there have discovered that the local toads - which have a poison in their skin which repels predators - can be used to create a high.
The locals skin the toads, partially dry the skin and then roll it around tobacco to form a cigarette. When smoked this poison acts as a hallucinogen - similar to LSD.
Where do we go from here ? Will we see a law making it illegal to be found to be in possession of a Cane Toad ?
It is possible that our Cane Toads do not have the same pathogen in their skin as the Iranian breed, but it sounds mighty similar and you can be certain that local drug users have pricked up their ears - and will put it to the test.
If it proves to be a new drug of choice we will face another problem. Drug suppliers will have a huge incentive to help Cane Toads spread to other parts of Australia.
Why let Queensland corner the drug supply if you can have the main ingredient hopping around in your own backyard ?
We are certainly not winning the war on drugs - and it looks like dear old Mother Nature has just dealt the drug industry a hand consisting of four aces !
Now the police have a new problem on their hands. Cane Toads may be the next big thing in the drug trade !
Iran reports that drug users there have discovered that the local toads - which have a poison in their skin which repels predators - can be used to create a high.
The locals skin the toads, partially dry the skin and then roll it around tobacco to form a cigarette. When smoked this poison acts as a hallucinogen - similar to LSD.
Where do we go from here ? Will we see a law making it illegal to be found to be in possession of a Cane Toad ?
It is possible that our Cane Toads do not have the same pathogen in their skin as the Iranian breed, but it sounds mighty similar and you can be certain that local drug users have pricked up their ears - and will put it to the test.
If it proves to be a new drug of choice we will face another problem. Drug suppliers will have a huge incentive to help Cane Toads spread to other parts of Australia.
Why let Queensland corner the drug supply if you can have the main ingredient hopping around in your own backyard ?
We are certainly not winning the war on drugs - and it looks like dear old Mother Nature has just dealt the drug industry a hand consisting of four aces !
Tuesday 17 February 2009
Death awaits !
We are horrified at the carnage and destruction fire caused in Victoria, and yet a similar fate is ever present from our escarpment.
Stand just about anywhere in Wollongong and look at the escarpment and you see a huge number of trees cascading down to where they intermingle with homes. It last burned in 1968, hence the amount of fuel present must be enormous - and all it will take is the right circumstances - hot weather, high winds - and a spark in the right place - and we have a disaster !
There is no way such a fire can be prevented. The fire people conduct regular fuel reduction burn-offs when conditions allow, but just as the Victorian fires morphed from a normal bush fire into a fire storm no amount of hazard reduction can remove the danger.
The one thing we can do is to have a workable evacuation plan - and have this backed by a warning system that is practical.
What is needed is a " worst case " scenario to plot which homes could not survive a fire storm and install a means of alerting residents to flee before the fire arrives. Whether that escape should be compulsory or voluntary is a moot point, and will no doubt result in a verbal tussle between the civil liberties people and the authorities.
As a result of events in Victoria many people are now less complacent about fire risks and there is a greater tendency to accept the concept of evacuation.
The problem is that without a clearly delineated plan of who should flee and where they should seek safety - and a warning system to sound the alarm about a coming major fire event - the same confusion and mixed reactions that killed people in Victoria will most likely prevail here.
It is not a matter of " if " but of " when " the escarpment will burn. Now is the time to have contingency plans in place and ready !
Stand just about anywhere in Wollongong and look at the escarpment and you see a huge number of trees cascading down to where they intermingle with homes. It last burned in 1968, hence the amount of fuel present must be enormous - and all it will take is the right circumstances - hot weather, high winds - and a spark in the right place - and we have a disaster !
There is no way such a fire can be prevented. The fire people conduct regular fuel reduction burn-offs when conditions allow, but just as the Victorian fires morphed from a normal bush fire into a fire storm no amount of hazard reduction can remove the danger.
The one thing we can do is to have a workable evacuation plan - and have this backed by a warning system that is practical.
What is needed is a " worst case " scenario to plot which homes could not survive a fire storm and install a means of alerting residents to flee before the fire arrives. Whether that escape should be compulsory or voluntary is a moot point, and will no doubt result in a verbal tussle between the civil liberties people and the authorities.
As a result of events in Victoria many people are now less complacent about fire risks and there is a greater tendency to accept the concept of evacuation.
The problem is that without a clearly delineated plan of who should flee and where they should seek safety - and a warning system to sound the alarm about a coming major fire event - the same confusion and mixed reactions that killed people in Victoria will most likely prevail here.
It is not a matter of " if " but of " when " the escarpment will burn. Now is the time to have contingency plans in place and ready !
Monday 16 February 2009
Musical chairs ?
The proposal to combine and integrate the roles of cleaners and wardpersons at Wollongong hospital reeks of cost cutting.
At first glance it seems reasonable. Having a pool of people who can do either job means that there is greater flexibility. If things are quiet in the wards, more people can be tasked to clean and help eliminate the super bugs that are spreading throughout the hospital.
That is where theory comes into sharp contrast with reality. The majority of the wardpersons are male - and big, muscled males at that - well suited to moving patients in their beds to various parts of the hospital for procedures. They also do the heavy lifting under instruction from nurses and doctors.
The cleaners are mostly female, are well trained - and have an affinity for the jobs they do.
Combining the roles simply means diluting the skills and causing headaches for the nursing staff who need to call on either section. If there is a surge in patient movement it would have to be at the cost of cleaning, and if cleaning is essential to prepare a bed for a new patient then movement to procedures will have to be delayed.
The one factor not mentioned in this proposal is staff numbers, but a cynic would be certain that hospital management has in mind a reduction in numbers - and therefore a saving in costs.
What is galling to the people who actually work in and run hospitals is that this inevitable lowering of standards is being proposed at the same time as an army of displaced senior bureaucrats is idle, drawing big figure salaries and doing nothing - because their jobs have been abolished.
It is time that redundancy in the public service means the same as it does in the private sector.
You get a pink slip - and you get your cheque for redundancy pay, holiday pay and any other money owing - and you go out the door and go look for another job !
At least that would be more practical than damn fool schemes like combining skills to achieve lower standards !
At first glance it seems reasonable. Having a pool of people who can do either job means that there is greater flexibility. If things are quiet in the wards, more people can be tasked to clean and help eliminate the super bugs that are spreading throughout the hospital.
That is where theory comes into sharp contrast with reality. The majority of the wardpersons are male - and big, muscled males at that - well suited to moving patients in their beds to various parts of the hospital for procedures. They also do the heavy lifting under instruction from nurses and doctors.
The cleaners are mostly female, are well trained - and have an affinity for the jobs they do.
Combining the roles simply means diluting the skills and causing headaches for the nursing staff who need to call on either section. If there is a surge in patient movement it would have to be at the cost of cleaning, and if cleaning is essential to prepare a bed for a new patient then movement to procedures will have to be delayed.
The one factor not mentioned in this proposal is staff numbers, but a cynic would be certain that hospital management has in mind a reduction in numbers - and therefore a saving in costs.
What is galling to the people who actually work in and run hospitals is that this inevitable lowering of standards is being proposed at the same time as an army of displaced senior bureaucrats is idle, drawing big figure salaries and doing nothing - because their jobs have been abolished.
It is time that redundancy in the public service means the same as it does in the private sector.
You get a pink slip - and you get your cheque for redundancy pay, holiday pay and any other money owing - and you go out the door and go look for another job !
At least that would be more practical than damn fool schemes like combining skills to achieve lower standards !
Sunday 15 February 2009
The fire brigade levy !
Eventually figures will be collated to reveal how many homes destroyed in the Victorian fire disaster were uninsured. Recovery will then depend on many factors, including public goodwill and help from the government.
We can expect a growing percentage of uninsured homes in the months - and possibly years ahead. The first thing that happens in hard times is that household expenditure is examined - and discretionary spending is cut.
When the insurance premium renewal comes in some will review it as " non essential " and reluctantly drop their insurance cover. A factor that will have a bearing on such a decision is the heavy imposition of the Fire brigade levy in the premium.
That raises another question. The people who insure are paying to maintain the fire brigade, but all householders share the benefit. The fire brigade does not only turn out to save insured homes !
The uninsured are getting a free ride and because of that those who are insured are paying an artificially high premium. If the premium were lower, obviously more people would be inclined to insure their homes.
Perhaps the emphasis on fire protection costs should not be added to insurance premiums, but levied against all households on an equal basis - and that could be achieved by making fire insurance a component of municipal rates.
There would be a huge advantage of removing insurance as an optional decision and providing cover to all homes through automatic rate cover. The pool of contributions would be higher, and as a consequence the individual charge would be lower.
When the Royal Commission begins investigating the Victorian tragedy the matter of insurance cover should be high on the agenda. Universal fire, flood and storm insurance would let many sleep more soundly even in hard economic times !
We can expect a growing percentage of uninsured homes in the months - and possibly years ahead. The first thing that happens in hard times is that household expenditure is examined - and discretionary spending is cut.
When the insurance premium renewal comes in some will review it as " non essential " and reluctantly drop their insurance cover. A factor that will have a bearing on such a decision is the heavy imposition of the Fire brigade levy in the premium.
That raises another question. The people who insure are paying to maintain the fire brigade, but all householders share the benefit. The fire brigade does not only turn out to save insured homes !
The uninsured are getting a free ride and because of that those who are insured are paying an artificially high premium. If the premium were lower, obviously more people would be inclined to insure their homes.
Perhaps the emphasis on fire protection costs should not be added to insurance premiums, but levied against all households on an equal basis - and that could be achieved by making fire insurance a component of municipal rates.
There would be a huge advantage of removing insurance as an optional decision and providing cover to all homes through automatic rate cover. The pool of contributions would be higher, and as a consequence the individual charge would be lower.
When the Royal Commission begins investigating the Victorian tragedy the matter of insurance cover should be high on the agenda. Universal fire, flood and storm insurance would let many sleep more soundly even in hard economic times !
Saturday 14 February 2009
Road kill !
The negotiations over distributing the $ 42 billion stimulus package bear a strong resemblance to carrion birds fighting over road kill !
The Liberal/National party rejects the scheme outright on the grounds that it is too much - too soon, and will leave the nation with an unsustainable debt.
Deadlock in the Senate - with the bill's passage in the hands of the Greens and the independents.
The Greens have five Senators, plus Family First Steve Fielding and South Australian independent Nick Xenophon.
The Greens caved in first, bought off for a paltry few million to construct bicycle paths. Fielding also got his " pot of gold ", but Xenophon demanded big money for the restoration of the Murray/Darling river system - and the government baulked. Xenophon held firm - and the bill was defeated.
Panic in government ranks. A hasty session of the lower house and the bill was back in the Senate - and this time Xenophon got double the original offer - and the bill passed into law.
Now the feeding on road kill progresses. The big money to be spent on restoration projects like refurbishing primary schools will be handled by the state governments, and politicians of both persuasions will have their hands in the process of calling tenders and distributing the money.
It is simply beyond the capacity of the political mind to see the big picture and act like statesmen and stateswomen. That is the nature of politics.
Hopefully this huge experiment with the debt to be passed on to future generations will stave off an expected surge in unemployment - and leave the country far better off with improved infrastructure.
If it degenerates into " pork " that blows out costs and diminishes the benefits then the future of Australia will have been dealt a mortal blow.
The omens are not good - considering the spectacle of those holding the balance of power ignoring the greater need and squabbling to obtain benefits for their own political area in exchange for the political power they were able to wield.
It simply reinforces the stereotype image of all politicians as birds of prey !
The Liberal/National party rejects the scheme outright on the grounds that it is too much - too soon, and will leave the nation with an unsustainable debt.
Deadlock in the Senate - with the bill's passage in the hands of the Greens and the independents.
The Greens have five Senators, plus Family First Steve Fielding and South Australian independent Nick Xenophon.
The Greens caved in first, bought off for a paltry few million to construct bicycle paths. Fielding also got his " pot of gold ", but Xenophon demanded big money for the restoration of the Murray/Darling river system - and the government baulked. Xenophon held firm - and the bill was defeated.
Panic in government ranks. A hasty session of the lower house and the bill was back in the Senate - and this time Xenophon got double the original offer - and the bill passed into law.
Now the feeding on road kill progresses. The big money to be spent on restoration projects like refurbishing primary schools will be handled by the state governments, and politicians of both persuasions will have their hands in the process of calling tenders and distributing the money.
It is simply beyond the capacity of the political mind to see the big picture and act like statesmen and stateswomen. That is the nature of politics.
Hopefully this huge experiment with the debt to be passed on to future generations will stave off an expected surge in unemployment - and leave the country far better off with improved infrastructure.
If it degenerates into " pork " that blows out costs and diminishes the benefits then the future of Australia will have been dealt a mortal blow.
The omens are not good - considering the spectacle of those holding the balance of power ignoring the greater need and squabbling to obtain benefits for their own political area in exchange for the political power they were able to wield.
It simply reinforces the stereotype image of all politicians as birds of prey !
Friday 13 February 2009
Insurance premiums.
There is a certain inevitability about the coming rise in insurance premiums for home and contents cover.
The Victorian and South Australian fires will cost many millions of dollars, but this cost will be dwarfed by the settlements for the floods in Queensland.
In property loss Victoria will need insurance compensation for well over a thousand homes, a huge number of motor vehicles and stock and infrastructure associated with four hundred and fifty thousand hectares of burnt out farmland.
Two thirds of Queensland went under water in one of the greatest floods ever recorded, and that means flood damage to homes running into the hundreds of thousands, spread from the coast inland - and including many areas not previously known to flood.
Not many homes were actually destroyed, but the cost of replacing the contents damaged by two metres of water will be enormous. Consider what a day or so of muddy water in the average home will do to the contents. Basically, all carpets, furniture, electricals and Gyprock wall linings will need to be dumped - and replaced. Cars that have been inundated may be restored, but at a considerable cost.
Not all of this cost will be borne by local insurance companies. Major disasters such as this are spread by way of " reinsurance " - whereby the risk is contained by local insurance companies taking out their own insurance with overseas companies and thus spreading the risk on a world wide basis.
Despite this, February's trials by fire and flood will lower insurance company profits, cost them a mint of money - and surely result in a premium hike.
It couldn't come at a worse time. We are heading into a recession and many people are on the cusp of losing their jobs - and one of the first things that happen when money is short is a reduction in discretionary spending.
Even in relatively good times some people take the risk of going without home and contents insurance. We can expect a surge in lapsed insurance when the premiums fall due this year, and that means that when the next disaster happens a lot more people will have to rely on charity to survive.
This is one area where the government could help. Insurance premiums are bloated with add on costs such as the Goods and Services Tax ( GST ) and hefty fire brigade levies.
Basically, the people who insure are subsidizing those that don't - and a fairer distribution of risk would be for the government to waive the GST on insurance premiums - and accept the costs of providing the services of the fire brigades.
It would be a worthwhile inclusion in the proposed $ 42 billion stimulus package !
The Victorian and South Australian fires will cost many millions of dollars, but this cost will be dwarfed by the settlements for the floods in Queensland.
In property loss Victoria will need insurance compensation for well over a thousand homes, a huge number of motor vehicles and stock and infrastructure associated with four hundred and fifty thousand hectares of burnt out farmland.
Two thirds of Queensland went under water in one of the greatest floods ever recorded, and that means flood damage to homes running into the hundreds of thousands, spread from the coast inland - and including many areas not previously known to flood.
Not many homes were actually destroyed, but the cost of replacing the contents damaged by two metres of water will be enormous. Consider what a day or so of muddy water in the average home will do to the contents. Basically, all carpets, furniture, electricals and Gyprock wall linings will need to be dumped - and replaced. Cars that have been inundated may be restored, but at a considerable cost.
Not all of this cost will be borne by local insurance companies. Major disasters such as this are spread by way of " reinsurance " - whereby the risk is contained by local insurance companies taking out their own insurance with overseas companies and thus spreading the risk on a world wide basis.
Despite this, February's trials by fire and flood will lower insurance company profits, cost them a mint of money - and surely result in a premium hike.
It couldn't come at a worse time. We are heading into a recession and many people are on the cusp of losing their jobs - and one of the first things that happen when money is short is a reduction in discretionary spending.
Even in relatively good times some people take the risk of going without home and contents insurance. We can expect a surge in lapsed insurance when the premiums fall due this year, and that means that when the next disaster happens a lot more people will have to rely on charity to survive.
This is one area where the government could help. Insurance premiums are bloated with add on costs such as the Goods and Services Tax ( GST ) and hefty fire brigade levies.
Basically, the people who insure are subsidizing those that don't - and a fairer distribution of risk would be for the government to waive the GST on insurance premiums - and accept the costs of providing the services of the fire brigades.
It would be a worthwhile inclusion in the proposed $ 42 billion stimulus package !
Thursday 12 February 2009
Protectionism !
The one sure way to escalate this recession into a full blown depression is for countries to retreat into the fortress of protectionism !
That is exactly what happened in 1929. Government's rushed through laws intended to protect their industries - and therefore their jobs. It quickly developed into a tit for tat race that closed down international trade - and left each country with unsold and unwanted goods - and millions unemployed.
The concept certainly has appeal - and it is rearing it's ugly head both here and in America !
The Electrical Trade Union of Australia is calling for Kevin Rudd to include a " Buy Australian " clause in the proposed $ 42 billion stimulus package battling it's way through parliament.
The American steel industry asked Barak Obama to ban foreign steel from the the infrastructure renewal component of his national stimulus bill.
To many people that concept makes sense. What is the use of spending money to keep jobs functional if the material used is from a foreign country and the local industry is shedding jobs because of lack of orders ?
The sticking point is committing " buy local " to law. The moment that is done we have fired the first shot in a trade war.
There will be a natural tendency to use local products in tough times, but the deciding factor will be price. If competitor's products are banned the local industry has no incentive to keep it's prices reasonable.
Governments must be vigilant to ensure foreign goods are not dumped here but local suppliers must be just as competitive as in good times. Open competition is the great leveler - and the sure way to disaster is to close the door to competitive trade.
America rejected the idea of only allowing American made steel to be used in it's stimulus package - and we need to be equally dismissive of protectionism !
If not - the lesson of 1929 is about to be repeated !
That is exactly what happened in 1929. Government's rushed through laws intended to protect their industries - and therefore their jobs. It quickly developed into a tit for tat race that closed down international trade - and left each country with unsold and unwanted goods - and millions unemployed.
The concept certainly has appeal - and it is rearing it's ugly head both here and in America !
The Electrical Trade Union of Australia is calling for Kevin Rudd to include a " Buy Australian " clause in the proposed $ 42 billion stimulus package battling it's way through parliament.
The American steel industry asked Barak Obama to ban foreign steel from the the infrastructure renewal component of his national stimulus bill.
To many people that concept makes sense. What is the use of spending money to keep jobs functional if the material used is from a foreign country and the local industry is shedding jobs because of lack of orders ?
The sticking point is committing " buy local " to law. The moment that is done we have fired the first shot in a trade war.
There will be a natural tendency to use local products in tough times, but the deciding factor will be price. If competitor's products are banned the local industry has no incentive to keep it's prices reasonable.
Governments must be vigilant to ensure foreign goods are not dumped here but local suppliers must be just as competitive as in good times. Open competition is the great leveler - and the sure way to disaster is to close the door to competitive trade.
America rejected the idea of only allowing American made steel to be used in it's stimulus package - and we need to be equally dismissive of protectionism !
If not - the lesson of 1929 is about to be repeated !
Wednesday 11 February 2009
Business as usual.
A lot of people are having doubts about Barak Obama's recovery plan in the US - just as some wonder if Kevin Rudd's forty two billion dollar handout will bring a permanent answer to this recession.
A worrying sign is the attitude of the big American banks and finance houses. They are the very people who caused this problem with their greed and doubtful ethics, and now they have been bailed out with public money they are heading right back into the same practices - and rewarding executives who should have been fired with huge bonuses.
The danger is that we could see a similar outcome to the ten billion giveaway to pensioners and families that Rudd conducted last December 8.
There was a jump in pre-Christmas retail sales and this saved the jobs of huge numbers of employees - and then retail feel off a cliff !
This new incentive is a mixture of giveaway and money for projects. Work on projects such as the refurbishing of schools will return a benefit and work will be extended over a period of time - but when the money runs out and the work finishes - will we return to where we are now ?
The gamble is that this injection of money will kick start the economy, the banks will resume meaningful lending, people will have jobs and be able to pay their mortgages - and the economy will gain strength and return to health.
If it doesn't we will have imposed a crushing debt for our children and grandchildren to repay - and all we will have achieved is to delay the inevitable !
If nothing will stave off a depression then we would be wise to tackle it head on - take the pain that an army of people out of work will suffer and let natural forces restructure the economy and allow a healthier system to emerge.
Tinkering with an ageing and corrupt economy is only going to perpetuate the cause of this crash - and the actions of the Greens and independent Senators in pushing their political barrows as a bribe to passing legislation is part of that decay.
Maybe now would be a good time for all sections of politics to meet in goodwill and put together a plan to get us out of this mess.
The wisdom of many is preferable to action courses dictated by political dogma !
A worrying sign is the attitude of the big American banks and finance houses. They are the very people who caused this problem with their greed and doubtful ethics, and now they have been bailed out with public money they are heading right back into the same practices - and rewarding executives who should have been fired with huge bonuses.
The danger is that we could see a similar outcome to the ten billion giveaway to pensioners and families that Rudd conducted last December 8.
There was a jump in pre-Christmas retail sales and this saved the jobs of huge numbers of employees - and then retail feel off a cliff !
This new incentive is a mixture of giveaway and money for projects. Work on projects such as the refurbishing of schools will return a benefit and work will be extended over a period of time - but when the money runs out and the work finishes - will we return to where we are now ?
The gamble is that this injection of money will kick start the economy, the banks will resume meaningful lending, people will have jobs and be able to pay their mortgages - and the economy will gain strength and return to health.
If it doesn't we will have imposed a crushing debt for our children and grandchildren to repay - and all we will have achieved is to delay the inevitable !
If nothing will stave off a depression then we would be wise to tackle it head on - take the pain that an army of people out of work will suffer and let natural forces restructure the economy and allow a healthier system to emerge.
Tinkering with an ageing and corrupt economy is only going to perpetuate the cause of this crash - and the actions of the Greens and independent Senators in pushing their political barrows as a bribe to passing legislation is part of that decay.
Maybe now would be a good time for all sections of politics to meet in goodwill and put together a plan to get us out of this mess.
The wisdom of many is preferable to action courses dictated by political dogma !
Tuesday 10 February 2009
A lesson to be learned.
When Cyclone Tracy ravaged Darwin on Christmas day, 1974 it was one of Australia's major national disasters. Seventy one citizens died and over eighty percent of homes were destroyed. As a result the city was evacuated and a commission of enquiry held to plan rebuilding with the aim of ensuring that this level of destruction could never happen again.
The tragedy that struck Victoria in the past few days raises a similar set of questions. Summer bushfires are a natural phenomenon of this continent and in particular topography seems to ensure that Victoria and South Australia are the focus of extremely intense fires.
In Darwin a new building code ensured houses were fitted with upgraded bracing to withstand cyclonic winds and a host of further detail regarding materials used and site improvements made for highly improved homes capable of withstanding the extremes of nature.
A similar enquiry is needed in the fire ravaged areas of Victoria and South Australia before the first rebuilding brick is laid. Both states have had previous destructive fires - and now is the opportunity to have a plan in place to ensure that the fires that will eventually occur in the future do not create the death and destruction we have just witnessed.
Unfortunately this will mean the loss of some civil liberties. Some sites may be just too dangerous to be considered for rebuilding. House designs may not please everyone but the factors that make them fire resistant are more important than aesthetics.
It may be that villages that have been destroyed should not be rebuilt on that site. If the topography surrounding them creates a wind tunnel effect to concentrate a fire storm then maybe the land should be resumed, and owners compensated by free land paid for by the government in a less dangerous location.
It is important that this opportunity be used to try and minimise future death and destruction by fire. We did it successfully in Darwin after 1974. Now is the time for both state government's to act - with full backing by the Federal government.
No rebuilding should be permitted until that plan is in place !
The tragedy that struck Victoria in the past few days raises a similar set of questions. Summer bushfires are a natural phenomenon of this continent and in particular topography seems to ensure that Victoria and South Australia are the focus of extremely intense fires.
In Darwin a new building code ensured houses were fitted with upgraded bracing to withstand cyclonic winds and a host of further detail regarding materials used and site improvements made for highly improved homes capable of withstanding the extremes of nature.
A similar enquiry is needed in the fire ravaged areas of Victoria and South Australia before the first rebuilding brick is laid. Both states have had previous destructive fires - and now is the opportunity to have a plan in place to ensure that the fires that will eventually occur in the future do not create the death and destruction we have just witnessed.
Unfortunately this will mean the loss of some civil liberties. Some sites may be just too dangerous to be considered for rebuilding. House designs may not please everyone but the factors that make them fire resistant are more important than aesthetics.
It may be that villages that have been destroyed should not be rebuilt on that site. If the topography surrounding them creates a wind tunnel effect to concentrate a fire storm then maybe the land should be resumed, and owners compensated by free land paid for by the government in a less dangerous location.
It is important that this opportunity be used to try and minimise future death and destruction by fire. We did it successfully in Darwin after 1974. Now is the time for both state government's to act - with full backing by the Federal government.
No rebuilding should be permitted until that plan is in place !
Monday 9 February 2009
Arsonists !
Yesterday eighty four people died a terrible death and seven hundred and fifty homes were destroyed when fire ravaged Victoria in a day of extreme heat and strong winds.
Bushfires are a natural hazard in this country - but what is mind numbing is the reality that most of these fires were deliberately lit.
When someone lights a fire on a day of extreme fire danger that is attempted murder. When a person dies as a result of that fire - that is murder !
Which raises the question of crime - and punishment !
There are some crimes which deserve capital punishment - and the citizens of this country have never been permitted a vote on that subject. Death by hanging was virtually abolished simply because in the eyes of some it became politically incorrect - and judges ceased handing down death sentences.
Few would support capital punishment for all murders. Crimes of passion committed in a rage can be understood, but there are some crimes that are just so horrible that the perpetrator has crossed a line and deserves to die.
An arsonist who deliberately seeks the death of fellow citizens and the destruction of their property is guilty of an act of terrorism - and no time in a prison will atone for that action.
It is time that Australian citizens were permitted a referendum to decide this issue.
The case for a death penalty should not be encased in misleading terms that allow only a single outcome - as was the case in the Monarchy or Republican decision.
It should spell out precisely what crimes would attract the sentence of execution - and allow the judge presiding at that trial the final decision on it's imposition.
The thought that the arsonists who caused yesterdays mass murder may get a life sentence - and be out in about sixteen years under the parole system - is good reason to put the question to the people of what penalty should apply !
After all, the choice of the people is the corner stone of a democratic society !
Bushfires are a natural hazard in this country - but what is mind numbing is the reality that most of these fires were deliberately lit.
When someone lights a fire on a day of extreme fire danger that is attempted murder. When a person dies as a result of that fire - that is murder !
Which raises the question of crime - and punishment !
There are some crimes which deserve capital punishment - and the citizens of this country have never been permitted a vote on that subject. Death by hanging was virtually abolished simply because in the eyes of some it became politically incorrect - and judges ceased handing down death sentences.
Few would support capital punishment for all murders. Crimes of passion committed in a rage can be understood, but there are some crimes that are just so horrible that the perpetrator has crossed a line and deserves to die.
An arsonist who deliberately seeks the death of fellow citizens and the destruction of their property is guilty of an act of terrorism - and no time in a prison will atone for that action.
It is time that Australian citizens were permitted a referendum to decide this issue.
The case for a death penalty should not be encased in misleading terms that allow only a single outcome - as was the case in the Monarchy or Republican decision.
It should spell out precisely what crimes would attract the sentence of execution - and allow the judge presiding at that trial the final decision on it's imposition.
The thought that the arsonists who caused yesterdays mass murder may get a life sentence - and be out in about sixteen years under the parole system - is good reason to put the question to the people of what penalty should apply !
After all, the choice of the people is the corner stone of a democratic society !
Sunday 8 February 2009
Politically incorrect !
Howls of rage because a senior police officer, speaking about a new documentary series " Gangs of Oz ", commented that " Middle Eastern crime gangs " have perfected crime " !
The objection is to the naming of criminals as belonging to an ethnic group
It is no longer politically correct to refer to suspects of crime by terms such as " of Middle Eastern appearance ", " Aboriginal " or " Asian ".
Purists consider that using such terms infer criminality on all people who broadly fit that description. Taking such an attitude to the extremity of political correctness it would be necessary to ban words such as " tall " or " short " in describing suspects - and of course " male " or " female " could also be considered denigrating to innocent members of that particular sex !
What an interesting exercise in constructing a " wanted " poster to alert the public if such nonsense became accepted procedure.
These days it seems we are breeding an army of nit pickers who mull over every aspect of life in an attempt to neuter black and white - and reduce everything to a shade of gray.
If the authorities need to alert the public to look for a person it helps if specifics narrow the criteria. It could be argued that such a specification absolves those not of that appearance of being suspected of the crime !
Critics maintain that using terms such as " of Middle Eastern appearance " tend to suggest that all people of that nationality are criminals - because it is used often when referring to perpetrators of crime.
This ignores the fact that a percentage of such are people are criminals - just as a percentage of every race, colour and religion engage in criminal activity.
Appearance characteristics differ sharply between many races and they are a legitimate means of narrowing the description of the wanted person.
The danger is that political sensitivity may result in racial characteristics being barred by police and the media, resulting in the loss of help from the public because no reasonable description can be given to allow identification of a suspect at large.
If that happens, criminal elements have won a major battle in the war against crime !
The objection is to the naming of criminals as belonging to an ethnic group
It is no longer politically correct to refer to suspects of crime by terms such as " of Middle Eastern appearance ", " Aboriginal " or " Asian ".
Purists consider that using such terms infer criminality on all people who broadly fit that description. Taking such an attitude to the extremity of political correctness it would be necessary to ban words such as " tall " or " short " in describing suspects - and of course " male " or " female " could also be considered denigrating to innocent members of that particular sex !
What an interesting exercise in constructing a " wanted " poster to alert the public if such nonsense became accepted procedure.
These days it seems we are breeding an army of nit pickers who mull over every aspect of life in an attempt to neuter black and white - and reduce everything to a shade of gray.
If the authorities need to alert the public to look for a person it helps if specifics narrow the criteria. It could be argued that such a specification absolves those not of that appearance of being suspected of the crime !
Critics maintain that using terms such as " of Middle Eastern appearance " tend to suggest that all people of that nationality are criminals - because it is used often when referring to perpetrators of crime.
This ignores the fact that a percentage of such are people are criminals - just as a percentage of every race, colour and religion engage in criminal activity.
Appearance characteristics differ sharply between many races and they are a legitimate means of narrowing the description of the wanted person.
The danger is that political sensitivity may result in racial characteristics being barred by police and the media, resulting in the loss of help from the public because no reasonable description can be given to allow identification of a suspect at large.
If that happens, criminal elements have won a major battle in the war against crime !
Saturday 7 February 2009
Unintended results.
For reasons that are not clear the New South Wales government changed the status of " No Standing " signs to " No Stopping " on December 1 of last year.
As a result, those who dare even momentarily stop where an unchanged " No Standing " sign is displayed will now cop a fine of $ 185,a sharp increase on the previous $ 75 for exceeding the two minute limit previously allowed.
It is often said that legislation changes introduce unintended results and a glaring example of this relates to Australia Post street side letter boxes.
All such post boxes have " No Standing " stencilled on the side facing the road. The intention was two fold - to allow motorists to briefly stop and post letters, and to provide a space free of permanently parked vehicles to allow Australia Post to clear the mail for sorting and distribution.
This legislative change has presented a bonanza for Council rangers with their cameras recording photographic evidence. Most people are not even aware of the change of status of " No Standing " signs - and few are even aware of the stencil on the front of post boxes.
It would have been nice if the government had paid thought to the reason a brief stop was permitted at post boxes - and introduced a new sign to replace that " No Standing " that now meant " No Stopping ".
Replacing the stencil with " Two minute halt permitted " would have maintained the purpose of the original intention, but then - when did common sense ever become part of government thinking ?
What odds those " No Standing " signs are still displayed on post boxes decades from now ?
Just another example of a civil liberty denied - and a new opportunity created for revenue raising !
As a result, those who dare even momentarily stop where an unchanged " No Standing " sign is displayed will now cop a fine of $ 185,a sharp increase on the previous $ 75 for exceeding the two minute limit previously allowed.
It is often said that legislation changes introduce unintended results and a glaring example of this relates to Australia Post street side letter boxes.
All such post boxes have " No Standing " stencilled on the side facing the road. The intention was two fold - to allow motorists to briefly stop and post letters, and to provide a space free of permanently parked vehicles to allow Australia Post to clear the mail for sorting and distribution.
This legislative change has presented a bonanza for Council rangers with their cameras recording photographic evidence. Most people are not even aware of the change of status of " No Standing " signs - and few are even aware of the stencil on the front of post boxes.
It would have been nice if the government had paid thought to the reason a brief stop was permitted at post boxes - and introduced a new sign to replace that " No Standing " that now meant " No Stopping ".
Replacing the stencil with " Two minute halt permitted " would have maintained the purpose of the original intention, but then - when did common sense ever become part of government thinking ?
What odds those " No Standing " signs are still displayed on post boxes decades from now ?
Just another example of a civil liberty denied - and a new opportunity created for revenue raising !
Friday 6 February 2009
This changing world !
When the first settlers arrived in 1788 crime and punishment were accorded different standards. People could be sent to the gallows - or transported to the other side of the world for what would today be regarded as a " misdemeanour ".
Over time the death penalty began to only apply to murder - and was finally abolished. In it's place a sentence of " life " was supposed to ensure that the convicted person died of old age within the prison system.
Even that got watered down and now " life " usually means a maximum of twenty years - with time off for good behaviour usually resulting in a much earlier release.
In extreme cases a judge may determine that a case is so horrendous that a prisoner " should never be released ", but this has no legal standing and the " truth in sentencing " legislation leaves the sentence interpretation subject to review by a later judge.
Basically, the objective of the courts has changed from punishment to rehabilitation.
It seems that no crime - or very few crimes - are so horrific that rehabilitation can not prepare a prisoner for a change of attitude and the opportunity to once again take their place in society as a free person.
This change of attitude takes no account of the pain and distress the relatives of the victim feel when the perpetrator walks out of the prison gate.
What upsets many people is the knowledge that the prison regime has absolutely nothing to do with justice. It is all a matter of available space - and money !
Keeping a person in gaol is a very costly business and society now seems to prefer sentencing a lot of people to a short stay rather than keeping a lesser number incarcerated for a long time.
It provides the illusion of punishment - and that is what keeps politicians in office.
We have a world financial meltdown and this state is perilously close to being bankrupt. Watch out for a sharply increased " revolving door " attitude to prison sentencing - and more people walking free after a shorter period " inside " !
Over time the death penalty began to only apply to murder - and was finally abolished. In it's place a sentence of " life " was supposed to ensure that the convicted person died of old age within the prison system.
Even that got watered down and now " life " usually means a maximum of twenty years - with time off for good behaviour usually resulting in a much earlier release.
In extreme cases a judge may determine that a case is so horrendous that a prisoner " should never be released ", but this has no legal standing and the " truth in sentencing " legislation leaves the sentence interpretation subject to review by a later judge.
Basically, the objective of the courts has changed from punishment to rehabilitation.
It seems that no crime - or very few crimes - are so horrific that rehabilitation can not prepare a prisoner for a change of attitude and the opportunity to once again take their place in society as a free person.
This change of attitude takes no account of the pain and distress the relatives of the victim feel when the perpetrator walks out of the prison gate.
What upsets many people is the knowledge that the prison regime has absolutely nothing to do with justice. It is all a matter of available space - and money !
Keeping a person in gaol is a very costly business and society now seems to prefer sentencing a lot of people to a short stay rather than keeping a lesser number incarcerated for a long time.
It provides the illusion of punishment - and that is what keeps politicians in office.
We have a world financial meltdown and this state is perilously close to being bankrupt. Watch out for a sharply increased " revolving door " attitude to prison sentencing - and more people walking free after a shorter period " inside " !
Thursday 5 February 2009
The Forty-two billion dollar question !
Is spending forty-two billion dollars to stimulate the Australian economy a wise move or a step towards financial disaster ?
The government says " yes " - and the Opposition says " no " !
There is no clear answer because this is an economic meltdown that adheres to no known rules and what lays ahead for the men and women of the Australian workforce is yet to be determined by world events.
The government package is a mix of strategies including the revamp of all primary schools, plus a cash injection to wage earners, farmers and small business to get them spending - and keep the economy bubbling along.
The Opposition agrees that we need a spending package, but claims this forty-two billion package is just too big - and too soon !
Both sides of politics could be right - or they could be wrong - and we will not know the answer to that question until whatever happens plays out in the months ahead.
If the government is right and the package squeaks through the Senate with the help of the independents the spending surge may prevent pink slips to a big section of the workforce. Layoffs will certainly have a flow on effect of swelling the dole queues and causing mortgage defaults on a wide basis - and if that can be prevented we may avoid slipping from recession - to the dreaded " D " word - depression !
If the Opposition is right the Treasury will have fired it's guns in one glorious broadside - and be left with an empty ammunition locker. There is a limit to how much we can borrow by way of deficit spending.
The Opposition favours a smaller stimulus now to maintain the ability to further prime the pump once a clearer picture emerges of where the world economy is heading.
Two points of view will be going head to head in a vote in the nation's parliament.
Neither can be viewed as the right choice with any certainty !
Let us hope and pray that whichever prevails has the good luck to be the right choice.
The fate of twenty-two million people in this country hangs in the balance !
The government says " yes " - and the Opposition says " no " !
There is no clear answer because this is an economic meltdown that adheres to no known rules and what lays ahead for the men and women of the Australian workforce is yet to be determined by world events.
The government package is a mix of strategies including the revamp of all primary schools, plus a cash injection to wage earners, farmers and small business to get them spending - and keep the economy bubbling along.
The Opposition agrees that we need a spending package, but claims this forty-two billion package is just too big - and too soon !
Both sides of politics could be right - or they could be wrong - and we will not know the answer to that question until whatever happens plays out in the months ahead.
If the government is right and the package squeaks through the Senate with the help of the independents the spending surge may prevent pink slips to a big section of the workforce. Layoffs will certainly have a flow on effect of swelling the dole queues and causing mortgage defaults on a wide basis - and if that can be prevented we may avoid slipping from recession - to the dreaded " D " word - depression !
If the Opposition is right the Treasury will have fired it's guns in one glorious broadside - and be left with an empty ammunition locker. There is a limit to how much we can borrow by way of deficit spending.
The Opposition favours a smaller stimulus now to maintain the ability to further prime the pump once a clearer picture emerges of where the world economy is heading.
Two points of view will be going head to head in a vote in the nation's parliament.
Neither can be viewed as the right choice with any certainty !
Let us hope and pray that whichever prevails has the good luck to be the right choice.
The fate of twenty-two million people in this country hangs in the balance !
Wednesday 4 February 2009
World Economic Meltdown !
The world economic meltdown will certainly change the world for many people. Some will find themselves unemployed. Some previously well off people will find themselves applying for the pension - and most people will tighten their belts and reduce spending for fear of what the future holds in store.
Sport seems to be at the forefront of change. We have learned that this region's basketball team will close it's doors and no longer compete in the national league after thirty one years representing Wollongong. The demise of " The Hawks " will leave many fans without a focus of purpose.
Soccer followers have seen a recent national championship side - The Wollongong Wolves " fade from the scene and in both cases of basketball and soccer the reason was a lack of money to support teams at a national level.
There is a very real danger that we may lose St George Illawarra as a representative of this area - and once again the reason will be money.
We have a below standard arena and some people doubt that St George ever had their heart in the merger with the Steelers. The refurbishing of Belmore oval may see St George remain as a Sydney side, and if that happens rugby league will be a dying sport in the Illawarra.
There will still be junior basketball, soccer and league, but it will not be the same without the incentive for players to improve and find glory in a national competition - and there is every chance that Australian rules football will fill the gap. The ARL competition is expanding, and an Illawarra team could be a possibility in the near future.
The organizers of national sports are remiss in letting this happen. Any sport that concentrates teams in Melbourne and Sydney and ignores the remainder of Australia is on a downhill curve. Without regional competition striving for a place in the national teams the pool of talent runs dry - and with it that sport.
It costs big money to field a national team but the rewards for the sport concerned are critical. There are obvious benefits for lowering overall expenditure to finance a broader representation and improve the reach of the game.
That is an argument that seems to be falling on deaf ears !
Sport seems to be at the forefront of change. We have learned that this region's basketball team will close it's doors and no longer compete in the national league after thirty one years representing Wollongong. The demise of " The Hawks " will leave many fans without a focus of purpose.
Soccer followers have seen a recent national championship side - The Wollongong Wolves " fade from the scene and in both cases of basketball and soccer the reason was a lack of money to support teams at a national level.
There is a very real danger that we may lose St George Illawarra as a representative of this area - and once again the reason will be money.
We have a below standard arena and some people doubt that St George ever had their heart in the merger with the Steelers. The refurbishing of Belmore oval may see St George remain as a Sydney side, and if that happens rugby league will be a dying sport in the Illawarra.
There will still be junior basketball, soccer and league, but it will not be the same without the incentive for players to improve and find glory in a national competition - and there is every chance that Australian rules football will fill the gap. The ARL competition is expanding, and an Illawarra team could be a possibility in the near future.
The organizers of national sports are remiss in letting this happen. Any sport that concentrates teams in Melbourne and Sydney and ignores the remainder of Australia is on a downhill curve. Without regional competition striving for a place in the national teams the pool of talent runs dry - and with it that sport.
It costs big money to field a national team but the rewards for the sport concerned are critical. There are obvious benefits for lowering overall expenditure to finance a broader representation and improve the reach of the game.
That is an argument that seems to be falling on deaf ears !
Tuesday 3 February 2009
Brainwashed !
The world has been brainwashed into believing that nuclear power generation is unsafe. A single incident at Chernobyl - which did little long term damage - has been blown out of all proportion to vilify a way of saving the world from global warming.
Burning coal to generate electricity is one of the biggest producers of Co2 gas on the planet, followed by the use of the internal combustion engine to power the car fleet. The move to electric cars will reduce Co2 emissions over the long term, but if we continue to burn coal for electricity the real savings will be much less.
Nuclear power generation is a fact and has worked successfully for generations.
The biggest user if France - with fifty-nine nuclear power plants producing 77% of that country's electricity.
Other major users are South Korea with twenty reactors producing 35% of it's needs, Japan with fifty five reactors producing 28% and the United States with one hundred and four reactors - producing a tiny 19% of it's electricity supplies.
Australia - with about a third of the world's uranium - has no reactors producing electricity.
If we are serious about digging our way out of this economic meltdown hole, and if we really do want to save the planet from global warming - then all logic says that we need to commit the huge amounts of development money being proposed to replacing this nation's coal burning power stations with nuclear facilities.
Forget " cap and trade ". Replacing coal with nuclear and car engines with electric motors will more than substitute the Co2 emission savings likely to occur by carbon trading - without the damage this scheme would cause to our exports and world economic viability.
If major world countries have been able to successfully and safely use nuclear power generation for decades - then a reasonable question would be - " Why can't we ? "
Nuclear waste can hardly be cited as the problem. We live in one of the earth's biggest continents - and a large part of it is uninhabited desert !
It's simply a matter of taking the blinkers off and facing reality. Renewable wind, solar and wave action are decades away from being able to supply base load power and the only sustainable option at present is nuclear.
It's time we got over our paranoia about bogey men under the bed and grasped reality.
The economic meltdown is providing a great chance to make a decision that will not only provide jobs - but secure the future of this great country for centuries to come !
The only question is - whether we have the wisdom to take it !
Burning coal to generate electricity is one of the biggest producers of Co2 gas on the planet, followed by the use of the internal combustion engine to power the car fleet. The move to electric cars will reduce Co2 emissions over the long term, but if we continue to burn coal for electricity the real savings will be much less.
Nuclear power generation is a fact and has worked successfully for generations.
The biggest user if France - with fifty-nine nuclear power plants producing 77% of that country's electricity.
Other major users are South Korea with twenty reactors producing 35% of it's needs, Japan with fifty five reactors producing 28% and the United States with one hundred and four reactors - producing a tiny 19% of it's electricity supplies.
Australia - with about a third of the world's uranium - has no reactors producing electricity.
If we are serious about digging our way out of this economic meltdown hole, and if we really do want to save the planet from global warming - then all logic says that we need to commit the huge amounts of development money being proposed to replacing this nation's coal burning power stations with nuclear facilities.
Forget " cap and trade ". Replacing coal with nuclear and car engines with electric motors will more than substitute the Co2 emission savings likely to occur by carbon trading - without the damage this scheme would cause to our exports and world economic viability.
If major world countries have been able to successfully and safely use nuclear power generation for decades - then a reasonable question would be - " Why can't we ? "
Nuclear waste can hardly be cited as the problem. We live in one of the earth's biggest continents - and a large part of it is uninhabited desert !
It's simply a matter of taking the blinkers off and facing reality. Renewable wind, solar and wave action are decades away from being able to supply base load power and the only sustainable option at present is nuclear.
It's time we got over our paranoia about bogey men under the bed and grasped reality.
The economic meltdown is providing a great chance to make a decision that will not only provide jobs - but secure the future of this great country for centuries to come !
The only question is - whether we have the wisdom to take it !
Monday 2 February 2009
Social change coming !
The first shot has been fired across the bows of our drinking culture !
Recent statements that anyone drinking more than four glasses of liquor at a single sitting was in danger of seriously harming their health - and that two drinks a day was the maximum drinker's should imbibe is the start of an orchestrated campaign to bring in change to our drinking habits.
It tends to mimic the experience with tobacco !
Fifty years ago nearly half the Australian population smoked. People smoked and shopped at the same time in supermarkets, and there were ash trays in banks, restaurants, milk bars - and even the waiting rooms of doctor's surgeries.
Change was incremental. Bans slowly appeared, making it illegal to smoke on trains and buses, wharfs and ferries. Then this extended to where people were having a meal, and more recently it banned the cigarette from any area in clubs and pubs - and even to your favourite beach or sporting ground.
The percentage of smokers decreased, but with it came a change in social attitudes. A smoker lighting up today feels like some sort of social pariah. Even a smoker in the street gets disapproving looks from those passing by and there is a tendency for many to only smoke in secret.
It seems liquor is the next social change target.
Fifty years from now - or probably a lot sooner - inviting a guest to have a glass of alcohol will probably be a social indiscretion. Indulging in alcohol will seem to indicate a lack of self discipline.
This will not apply to everyone, of course. Just as there are smokers today who couldn't give a damn about the attitude of others, there will be those who over indulge in alcohol, and that will probable still apply to young people - but by and large there will be a change that will see a new attitude adopted.
Change will take many forms. The advertising of alcohol will face new restrictions and it is quite possible that liquor outlets may be forced to black out their windows and remove product displays - as is the proposal to further limit tobacco sales.
The liquor industry will fight tooth and nail to maintain it's market, and that is a big, powerful and very well financed segment - but then so was the tobacco industry.
The winds of change are blowing - and the most likely outcome is that having a few drinks will disappear from the public domain - but be " business as normal " in private !
Recent statements that anyone drinking more than four glasses of liquor at a single sitting was in danger of seriously harming their health - and that two drinks a day was the maximum drinker's should imbibe is the start of an orchestrated campaign to bring in change to our drinking habits.
It tends to mimic the experience with tobacco !
Fifty years ago nearly half the Australian population smoked. People smoked and shopped at the same time in supermarkets, and there were ash trays in banks, restaurants, milk bars - and even the waiting rooms of doctor's surgeries.
Change was incremental. Bans slowly appeared, making it illegal to smoke on trains and buses, wharfs and ferries. Then this extended to where people were having a meal, and more recently it banned the cigarette from any area in clubs and pubs - and even to your favourite beach or sporting ground.
The percentage of smokers decreased, but with it came a change in social attitudes. A smoker lighting up today feels like some sort of social pariah. Even a smoker in the street gets disapproving looks from those passing by and there is a tendency for many to only smoke in secret.
It seems liquor is the next social change target.
Fifty years from now - or probably a lot sooner - inviting a guest to have a glass of alcohol will probably be a social indiscretion. Indulging in alcohol will seem to indicate a lack of self discipline.
This will not apply to everyone, of course. Just as there are smokers today who couldn't give a damn about the attitude of others, there will be those who over indulge in alcohol, and that will probable still apply to young people - but by and large there will be a change that will see a new attitude adopted.
Change will take many forms. The advertising of alcohol will face new restrictions and it is quite possible that liquor outlets may be forced to black out their windows and remove product displays - as is the proposal to further limit tobacco sales.
The liquor industry will fight tooth and nail to maintain it's market, and that is a big, powerful and very well financed segment - but then so was the tobacco industry.
The winds of change are blowing - and the most likely outcome is that having a few drinks will disappear from the public domain - but be " business as normal " in private !
Sunday 1 February 2009
Protectionism !
The United States is proposing to spend a huge amount of money renewing road and bridge infrastructure as part of it's plan to keep people in jobs. As a result, there has been a call for only American steel to be used.
This raises the spectre of " protectionism " - the very stance that threw world trade into the " Great Depression " of the 1930's.
There is a certain logic in the claim that spending American money to abate a recession makes no sense if Chinese steel is used while American steel plants stand idle. The problem is that once the flood gates of protectionism are opened the world economy takes a fatal hit.
Remember back a few years when Australian citrus growers were tearing out orchards because Californian orange juice was displacing the Australian product on the shelves of Coles and Woolworths supermarkets ?
Economy of scale - and the sheer fact that supply exceeded demand on the American market resulted in prices offering below the cost of production in this country.
There is a saying that " those who fail to learn from history are destined to repeat it ".
World leaders are meeting in Davos to try and reach consensus on combating the world economic meltdown. High on the list is the hope of reaching agreement on maintaining " globalism " - and not resorting to tariffs and similar means of protecting domestic markets.
Given human nature and the sheer size of the looming trade threat it will be almost a miracle if this can be achieved.
Promises are one thing, but then politics comes into the equation. Nations may agree to maintaining open markets, but protectionism can arrive by the back door.
For instance, contracts for the American restoration work may contain no embargo against foreign steel, but by way of the " nod and wink " system those tendering for work may agree that only local steel will be used on such projects.
This world crisis badly needs statesmen to show resolve and stand firm behind international agreements. Unfortunately statesmen are thin on the ground and all the world has is politicians.
The history books may record that nothing was learned from the 1930's !
This raises the spectre of " protectionism " - the very stance that threw world trade into the " Great Depression " of the 1930's.
There is a certain logic in the claim that spending American money to abate a recession makes no sense if Chinese steel is used while American steel plants stand idle. The problem is that once the flood gates of protectionism are opened the world economy takes a fatal hit.
Remember back a few years when Australian citrus growers were tearing out orchards because Californian orange juice was displacing the Australian product on the shelves of Coles and Woolworths supermarkets ?
Economy of scale - and the sheer fact that supply exceeded demand on the American market resulted in prices offering below the cost of production in this country.
There is a saying that " those who fail to learn from history are destined to repeat it ".
World leaders are meeting in Davos to try and reach consensus on combating the world economic meltdown. High on the list is the hope of reaching agreement on maintaining " globalism " - and not resorting to tariffs and similar means of protecting domestic markets.
Given human nature and the sheer size of the looming trade threat it will be almost a miracle if this can be achieved.
Promises are one thing, but then politics comes into the equation. Nations may agree to maintaining open markets, but protectionism can arrive by the back door.
For instance, contracts for the American restoration work may contain no embargo against foreign steel, but by way of the " nod and wink " system those tendering for work may agree that only local steel will be used on such projects.
This world crisis badly needs statesmen to show resolve and stand firm behind international agreements. Unfortunately statesmen are thin on the ground and all the world has is politicians.
The history books may record that nothing was learned from the 1930's !
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