Tuesday 31 March 2009

G 20

It is said that those who fail to learn from history are destined to repeat it !

A conference will be held in London to try and avert a repeat of the " Great Depression " throwing millions out of work and inflicting a financial blight on the world.

A similar conference back in the 1930's failed when the participants closed ranks and adopted policies of protectionism. They shut out the flow of goods from one country to another in the belief that their own factories would keep running - and in the end no factories were left standing and the world economy collapsed.

It would be very easy for the G 20 conference to have a similar outcome. A consensus of the most important countries - the United States, Britain, France, Japan and China - is possible because they have the most to lose, but Europe could be the stumbling block.

The " Old World " is composed of a patchwork of countries of varied sophistication and purpose, some ruled by governments not known to cooperate with their neighbours. It would be so easy for some to seek approval by adopting protectionist policies - and like a contagious disease such thinking could spread and create a catastrophe.

There are already signs that some leaders are resisting any attempt to regulate financial markets, fearing that such restrictions could limit their economies. Putting an end to tax havens will also generate opposition because for some that is the sole source of their national income.

There will need to be give and take - and hopefully most will heed to big picture.

We were a less violent world back in the 1930's and most people accepted hardship with grace and stoicism. Our numbers have increased exponentially - and a repeat of that era could see a world reaction far beyond our worst nightmares !

Monday 30 March 2009

Land lease plan !

Many people despair of ever owning their own home. The cost of a house and land can only be achieved by taking out and servicing a mortgage many times the average annual salary.

The problem is that the value of land has increased at a phenomenal rate in the past several decades, and maybe now is the right time to consider a different approach.

The government releases land for housing and developers provide the infrastructure - and set the asking price. Either the homeowner buys the land and engages a builder, or the builder constructs a speculative house and offers it for sale.

All this revolves around the ownership issue. You need to buy the land as well as the house it stands on.

What if instead of selling that land the government offered it for perpetual lease ?

The householder owns the home built on that land - and can sell it to another person. Both know that the land underneath it belongs to the government and that it is subject to an annual dividend to be paid to the government.

It would be important that the land fee be tied to a formulae protected by law to prevent a future greedy government hiking the rent to usurious levels. Probably a percentage of the average basic wage would suffice, with levels adjusted annually.

The advantage would be removing the huge land purchase price from house and land deals and substituting a nominal rent in it's place. The government - owner of the land - would be justly compensated for getting such a small return by the fact that it was gaining a regular return in perpetuity.

The householder would gain by only having a mortgage covering the construction cost of the home erected on that land - which would be paid off much sooner because of it's lower level.
The interest thus saved would probably cover the annual lease fee.

It would be an interesting variation on the rigid home equity formulae presently in vogue. It would have some advantages for both the public and the government - and the added advantage that there would be a huge drop in second hand home prices - because all the new owner would be buying would be bricks and mortar - not the land that the home was sitting on.

Obviously it would not apply to existing properties - but it could be a refreshing new approach to land releases on the perimeter of our overcrowded cities.

We live in uncertain times - and new solutions to old problems should be welcome !

Sunday 29 March 2009

A slippery slope !

Premier Nathan Rees is talking tough on his proposed law to declare bikie gangs " criminal organizations " and introduce new consorting restrictions with gaol sanctions.

He claims that he will employ the best legal brains to " fireproof " this legislation and make it immune from a High court challenge. That is easier said than done, because the High court has a history of jealously guarding this country's constitution - and Rees is heading done a path that breaks new ground.

There is a distinct difference between the terms " did " and " might " ! Criminals are convicted by a court for offences they have committed. There is no law on the books to send people to gaol for crimes they " might " commit in the future.

The nearest we come to that is the law that requires paedophiles released from gaol to be registered with the police, reside at a known address, stay away from schools and places where children congregate - and report to police on a regular schedule.

The " right to associate " is a hallowed Australian liberty. In particular, the trade union movement will be watching closely to determine the implications of any restriction on association. It would be hard to define a legal definition of the difference between a " gang " - a " club " - and a " union " !

The age of terrorism has tempted many government's to place restrictions on civil liberties which would be rejected in normal times. It must always be kept in mind that laws placed by people of goodwill are quite capable of being abused should a totalitarian regime later come to power.

Mr Rees may find that nothing is " fireproof " when it comes under scrutiny by the High court !

Saturday 28 March 2009

Life saving help !

Just what is the purpose of a hospital ?

To most people, it is a place to go when you have suffered a life threatening injury or illness - with the expectation of swift medical attention.

In that respect, Wollongong hospital is sadly lacking, despite the best efforts of it's dedicated doctors and nurses.

The problem is simply lack of facilities . Wollongong has just twenty eight emergency department treatment bays - compared to St George Hospital's forty six and Nepean Hospitals forty - and yet the average number of patients presenting is roughly the same in all three centres.

Contraction of emergency department facilities has been happening for years. We originally had emergency facilities at Wollongong, Port Kembla and Bulli hospitals. Port Kembla was the first to go - despite it serving the growing south and the city's main industrial base - and more recently emergency was withdrawn from Bulli.

The mantra " Do more with less " prevails and as a result we have ambulances queued and patients in corridors on trolleys awaiting triage on an increasing number of occasions.

The solution to the problem is simple. More treatment bays - and more doctors and nurses to give quicker attention to those presenting.

The government claims it has no money to improve these services, but perhaps medical help for the seriously unwell should be heading the list of priorities. There are a plethora of other government departments competing for funds - and no doubt their services are important - but surely keeping people alive has to go to the top of the list !

Last week there were 983 people presenting to Wollongong emergency department, 329 arriving by ambulance - and presentations are increasing by 4.3% each year.

If the state government can not organise it's finances to provide a service that prolongs the life of it's citizens it should turn in it's resignation - get out of the way and make room for someone who can !

Friday 27 March 2009

No security lapse !

What is the job of the Defence Department ? To most people it's main purpose is to keep this country safe - and yet it is severely criticised because it investigated the relationship between the Defence Minister and a national from another country !

That is exactly what we would expect it to do !

In the course of history there have been many instances of state secrets being compromised - and in some cases even treason committed - because of security lapses that went unnoticed by those whose job it was to be attentive.

Just about every country in the world - friendly and unfriendly - maintain agents here to sniff out state secrets and gain commercial advantage. Not all of these are accredited to embassies - and in many cases they appear to be ordinary citizens.

We have our own specifically tasked security agency, but that does not mean that an entity such as the Defence Department must not act on it's own suspicions - and if it carried out an investigation then all the tools available to penetrating sources of information - including hacking into computers - are fair game.

Defence Minister Joel Fitzgibbon is incensed that he was investigated. He feels that this is merely payback because he is pursuing a reform agenda unpopular with his department.

The greatest danger to any country's security occurs when government ministers and heads of departments believe that they are above suspicion and attempt to thwart any attempt to monitor their conduct.

If the minister has nothing to hide, he should be grateful that a diligent department under his care is doing it's job and safeguarding the country's secrets !

Thursday 26 March 2009

Shoppers not welcome !

The city of Wollongong has no public voice - because it lacks an elected council. The decisions are made by three administrators - stooges appointed by the state government.

It seems that the main objective is to drive shoppers away from the CBD and the Mall.

What else can be assumed from the decisions to hike the price of council owned parking stations - and now a decision to install unpopular parking meters with an appetite for two dollar coins.
At the same time, years of study and argument on how to rejuvenate the Mall and improve the traffic flow that it disrupts have yet to be decided.

Every decision seems to increase the reason for shoppers to go elsewhere. Grocery shoppers find unlimited free parking at Fairy Meadow and Corrimal, and when it comes to a full service shopping complex the Mall pales into insignificance beside Miranda Fair.

Eventually the ban on elections will be lifted - by either this state government or the next - and we will again select our own representatives. What they will be confronted with is a regime of decisions made by an unelected body that may have struck a mortal blow to the financial health of the heart of this city.

The damage will be done. Those parking meters will be in place and the city will be stuck with a bill for their purchase. Not a chance of them being pulled out - and not a chance of more free parking - because once a money flow has been established it sticks like glue !

The city may as well spend a little more money and erect a few signs at the approaches to the CBD - signs proclaiming " Shoppers are not welcome ! "

Wednesday 25 March 2009

A new " People's car " !

At a time when the big name car companies of the world are needing government handouts to survive - a new " People's car " has been launched in India.

Tata Motors has launched it's two cylinder " Nano " model, a very " basic " car, but with a selling price of just under $ 3000 Australian dollars.

Owning a car is a sign of prestige for India's emerging " middle class " and this will replace the motor bike as the means of family transport. Tourists are astonished to see Indian families of four - and sometimes more - travelling about their cities on " two wheelers ".

Father is the bike rider with one of the kids on the petrol tank in front of him. His wife sits " side saddle " on the pillion - with another child sharing that seat.

It is a perilous form of transport on India's crowded streets and the aftermath of even a minor accident can be dire, but owning a motor bike is a sign of " arrival " for those enjoying the first reward of business success.

The arrival of a cheap, people's car in India will have repercussions for the world. We can expect a huge hike in demand for petrol - and consequently a surge in the price of oil.

India will suffer an increase in pollution as cars belch out more carbon and add to global warming, and with increased car traffic there will be a rise in road deaths.

The arrival of the Indian " Nano " model was an inevitability. Here in the west the car market has changed dramatically in recent years. South Korea astonished the car industry when Hyundai released it's top selling " Excel " - and for many people a new car became affordable for the first time.

It is now possible in Australia to buy a brand new car - with a five year warranty - for about $ 15,000. Not as cheap as the Nano - but well within the reach on the average Australian's finances.

It seems that the entire world is well on the way to achieving four wheel personal transportation !

Tuesday 24 March 2009

Bikie wars !

Gunfire sprayed on homes in Sydney suburbs - and a grisly murder in the domestic air terminal have the New South Wales state government considering a ban on bikie gangs. This is likely to be based on legislation being enacted in South Australia.

There is no doubt that bikie violence needs to be reigned in - but the South Australian law could prove to be a monster far bigger than the lawmakers intended.

The banning of bikie gangs seems to be the reintroduction of the old "consorting " laws. Years ago a magistrate or a judge could name an offender a " habitual criminal " - and should that person be found associating with a similar person - that would be a crime and both could do gaol time.

Under the proposed laws the state Attorney General - not a magistrate or a judge - would take submissions from police and decide to impose a ban on members of a bikie gang associating with one another.

The bikie gang would have one month to persuade the Attorney General not to proceed with the ban. The bikie gang would not be permitted to see the police allegations, hence they would be flying blind in rebutting the claim.

The danger here is that the decision would be made - not by a magistrate or a judge - but by a politician. That politician would have powers greater than a legal officer, and once that decision became law the mere fact of belonging to a group of people would be a crime leading to gaol - if two friends met to have a beer and watch the football in a hotel on a Saturday afternoon !

There is also the possibility of misuse of that law should a more totalitarian regime come to power. Such a regime may be offended by the news reports of a newspaper and impose a ban on the organization to stifle their voice and prevent the investigation of corruption.

Most people would prefer to see the implementation of bans run through traditional channels - through the courts and under the checks and balances of our legal system. The idea of such power resting in the hands of politicians sends a shiver through many law abiding spines.

Those same doubters may rest assured that there is a precedent that will surely come into force once this new law is tested in the courts.

Way back in 1950 the government of the day tried to ban the Communist party of Australia. This went all the way to the High Court - where it was struck down on constitutional grounds.

In all probability this bikie law will suffer a similar fate !

Monday 23 March 2009

Dirty politics !

Just coincidence ? Or dirty politics !

Just a week before a crucial state election in Queensland a national newspaper runs semi nude photographs of aspiring politician Pauline Hanson, supposedly taken by a man who claimed to be her ex-boyfriend.

Yesterday - the day after the election - which Pauline Hanson lost - that same paper admitted that the photographs were not genuine - claimed that they had been conned - and offered an apology !

What a remarkable piece of timing !

The opinion polls before the election indicated a close poll and both sides of politics thought a hung parliament was possible. In such circumstances, shutting out an independent would be crucial - because such a person might hold the balance of power.

Pauline Hanson was once the leader of " One Nation " and had a big following. Many of those were elderly people spooked by Asian immigration - and the elderly tend to be ultra conservative when it comes to sexual matters.

A semi nude Pauline Hanson would be a big turnoff to such people. There is a strange smell about this newspaper disclosure - and some would go further and say a bloody awful stink !

Just in case this was dirty politics it is essential that the Federal police fully investigate - and if they can find evidence of a political scam to deceive the voters - prosecute and name the instigators.

A lot of people who dislike Pauline Hanson's policies would be honest enough to insist that she is entitled to the Australian standard of " a fair go " !

Sunday 22 March 2009

The value of money !

Money is something we take for granted. It has the value to buy the things we need, but we rarely question how it fits in to the world monetary system.

Each country's money exchanges at a different rate. When we cross a national border and need to exchange cash we either get more or less, depending on the exchange rate at that time.

The exchange rate varies according to how well each country is performing in trade - whether it has a budget surplus or a deficit - and how confident the international community views it's future prospects.

Decades ago the better currencies were backed by the " Gold Standard ". For every dollar, pound or peso in circulation there was supposed to be gold held in a depository to match that amount.

When this " Gold Standard " was abandoned the value of a country's currency became a matter of trust. Two world leaders stood out and became the preferred currency in which to conduct world trade - those currencies were the British pound and the American dollar.

It is therefore a matter of great concern to many people to find that both countries are now printing money and putting this in circulation in an attempt to reflate the liquidity of their banks - and to get their economies moving.

Printing money to resolve a deficit was once seen as the last gamble of a failing regime. It generally preceded the collapse of that regime's hold on power - and was the prelude to the currency becoming a pariah - and becoming rejected as internationally negotiable.

It was an action associated with banana republics or failing dictators.

This action by the British and American treasuries should ring warning bells world wide. A surplus of cash from the printing press will devalue those currencies and lead to rampant inflation.

Inevitably, if the inflationary bear roars into ascendancy assets such as superannuation will lose value and the value of savings will diminish.

The winds of change ore blowing - and the next time we look in our wallets we may find that our purchasing power has been sadly eroded !

Saturday 21 March 2009

The status of " evidence " !

When is evidence not evidence ? The answer, it seems is when it is part of an enquiry conducted by the Independent Commission against Corruption ( ICAC ).

ICAC has draconian powers to force people to attend and give evidence, but that same evidence can not be used against them in a court if charges are laid.

Because Australia does not have a " Bill of Rights " those questioned by ICAC do not have the protection of " the Fifth Amendment ", allowing them to refuse to answer on the grounds that they might incriminate themselves.

Instead, they must answer even if they do incriminate themselves, but that is useless to future prosecutors because it can not be used as evidence of guilt.

What a strange way to run a legal system !

In recent times Wollongong council was sacked and administrators appointed because of the corrupt action of several councillors - and yet those people have yet to appear before a court and no charges have been laid.

It can be argued on the one hand that guilty people have got away with their crime - and on the other that the law lacks conclusive evidence other than their own words to lay a case and secure a conviction.

If we had a " Fifth Amendment " just about any ICAC enquiry would be a steady progression of witnesses refusing to give evidence by claiming the protection of that amendment.

Now there are moves to change the law to allow ICAC evidence to be used in civil court cases - and that's where the notion of a " fair trial " flies out the window.

If ICAC is to retain the draconian powers to make any witness not only attend, but to give truthful evidence under pain of imprisonment for refusal - then we are moving the goal posts if we then make that evidence fair game in any future trial the DPP may bring.

That would be a sure way for the guilty to flee the country to avoid giving evidence and would also prevent ICAC from getting to the bottom of corruption cases which involved systematic oversight flaws.

We would be better to stick to the system we have - despite the chance that the guilty may not serve just punishment - rather than make a change that would induce some to serve time for contempt of ICAC - a lesser penalty than would be meted out had that person admitted their crime and been punished under the law prevailing for that offence.

For some, refusing to testify would gain them hero status in the eyes of civil liberty fans, rather than the infamy of becoming a convicted felon.

The law makers should think long and hard before they interfere with a system that has the power to investigate crime - and yet offers protection for those offering an honest answer.

Friday 20 March 2009

A fair umpire !

Kevin Rudd must be worried that his options are shrinking. Family First Senator Steve Fielding is a rare breed of politician - one who says what he means and has the resolve to cast an unpopular vote.

The " Alcopops " fiasco was a case in point. The government jumped on a media scare story and looked to be doing something by installing a tax grab. It did nothing to reduce binge drinking and Fielding rightly surmised that part of the problem was the nexus between alcohol and sport which was sending the wrong message to young people.

Both the government and the opposition shied away from action - and Fielding held his ground and sent Rudd a very strong message.

Now we have the repeal of " Work Choice " and the proposed government replacement set for a vote.

The voters clearly indicated that they didn't want Work Choice at the last election, but they also did not vote in a union takeover of industrial relations - a move back to the bad old days when unions ruled the roost.

Julia Gillard refuses to move on the definition of " small business " and the legislation is clearly the promised reward for union help in winning the election.

There is absolutely no justice in allowing union thugs to walk into any business and demand to see the books, harass workers into joining a union and generally seek to intimidate management.

Fielding has indicated that changes will be necessary if the bill is to pass - and after the Alcopops legislation was struck down - Rudd now has good reason to think long and hard because a fair umpire is about to blow the whistle - and perhaps hand out a red card !

Thursday 19 March 2009

Gutless politicians.

Yesterday the Federal governments tax grab on " Alcopops " drinks went down in a screaming heap ! Family First Senator Steve Fielding refused to go along with a cosy little arrangement that suited both sides of the house - and voted down the legislation.

The government claimed to be concerned about ready to drink alcohol being consumed by under age drinkers - and slapped a 70% tax on it, raising prices from 30 c to $ 1.30 per drink.

Did anyone seriously think that increasing the price caused the kids who set out to get stinking drunk on a Saturday night to throw up their hands in horror - and cease drinking ?

They simply either mixed their own from spirits and soft drinks, or in some cases got their high from smoking Marijuana - or even worse - trying " Ice " for the first time.

Haven't the politicians learned that knee jerk reactions like hiking the price of popular goods will only produce an equal and opposite reaction ? In this case it was purely a tax grab. It backfired - and now the government will have to hand back the $ 300 million already collected.

Senator Fielding offered a reasonable compromise for his support of the bill. He demanded that alcohol advertising be banned during daytime sports broadcasting !

That was too much for both the main political parties. They feared the power and wrath of the alcohol industry - and they were not prepared to disrupt the huge flow of political donations that fed into their coffers !

Accusations will fly back and forth and back room deals will be taking place to try and save face, but it all boils down to lack of will to control an out of control situation.

We only have to listen to a news broadcast or read a newspaper to see the damage alcohol is doing to sport. Players with too much ego - and far too much money - are driving drunk, brawling in bars and sexually attacking women.

Take alcohol out of sport and stop the glamour presentation - and then we might have a small chance of changing the behaviour of our young people.

But not while our duplicitous politicians have their snouts in the trough !

Wednesday 18 March 2009

Cash not accepted.

There was a time when aged pensioners went to the bank on pension day, withdrew cash and then paid their bills. Today many companies would impose a penalty for offering cash !

If you are getting a monthly phone bill for a land line phone account through the post it would be a good idea to check the small print. You will find that you are being charged a two dollar " Account Processing Fee " and a fifty cent " Bill Payment Fee "!

In " Business speak " that $2 is for them having to post you a bill - and a lousy fifty cents because someone has to account for it within their computer system.

What they want you to do is to sign an " auto payment " advice to your bank, credit union or building society so that they simply dip into your funds and help themselves when an amount becomes due.

If you don't do that willingly, then " other methods " will come into play. They will simply hit you with added fees until you comply - and if they get the chance - they will make such a method of payment compulsory at the time you sign up for service - as the mobile phone people have already done.

A decade or so from now and direct payment will probably be the only option for paying regular bills. Even pensioners now have bank accounts. The days of the pension cheque coming through the mail and being cashed at the general store are long gone.

So - you have only two options. Keep paying by cash or cheque and accept their ever increasing penalties for doing so - or raise the white flag and surrender !

This used to be a free country !

Tuesday 17 March 2009

Bank confusion !

Users of Westpac's " Handycard " are entitled to be confused when they receive it's new, upgraded model.

According to the supporting literature their purchases will now be protected by the " Falcon " fraud protection system.

Under the old system using what is a debit card to access your own money was fairly simple. Put the card in the card reader. Select either " Cheque " or " Savings " to determine which account the money should come from - enter your PIN - and then hit " enter ".

Not so with the new card. Ignore both " Cheque " and " Savings " - and enter " Credit " to activate the Falcon system.

Now to most people " Credit " is to select a method where money is borrowed from some source that charges interest. Most would be reluctant to hit that key when their intention is to access their own money.

Just to be totally confusing, the explanatory letter does suggest instances when " Cheque " or " Savings " must be used. That is when a " cash out " withdrawal takes place at the same time as a purchase. In such instance, " Credit " is to be ignored - and the user returns to the former system.

Westpac does not offer further explanation in it's covering letter, but the following would be fair questions to ask.

How does the machine determine whether the user wants the funds taken from Cheque or Savings - if the account holder has both accounts with the bank - if there is no use made of these selection keys ?

Why does the user have to activate " Falcon " ? Surely a fraud detection system should act automatically on any transaction !

And just to add a further complexity to the equation. Try paying your Optus or Telstra phone bill at any Post Office using " Handycard " with the " Credit " button requirement.

Payment will be refused - despite the Telco's instruction on the back of their bills that credit payments are welcome.

But then - that is another matter and the source of another story.

After all, this is the twenty-first century - and whoever said that in this day and age such matters had to make sense ?

Monday 16 March 2009

The " Sandon Point " battle.

The Sandon Point controversy is over ... or is it ?

For years the development of this beachside piece of land between the ocean and the escarpment has been at the centre of a running war between so called " activists " and " developers ".

A huge number of entities have been involved and these include government ministers, members of the public, corporate heads, Wollongong council, Aboriginal elders - and the two main parties, Stockland and Anglican Retirement Villages. Stockland wants to build luxury homes and the Anglican people plan a retirement village.

The battle has mainly been waged in the courts, but theatre has been provided by demonstrations and even a long running Aboriginal embassy on the site.

Now - at long last - it seems that a final decision has arrived. The High Court of Australia has handed down a finding that an activist seeking leave to appeal a decision can not proceed.

This follows the finding of a lower court that a ministerial decision failed to take account of the possible effect of global warming in raising sea levels, leading to site flooding.

The sad part is that in all the flak and fury of legislation and demonstration no consideration was given to the wishes of the owner of the land.

Surely an owner has the right to make the final decision - subject to the rules imposed by the local council - on what he or she wants to see happen to the asset to which they hold a deed ?

In this day and age it seems that any member of the public has the right to intervene, take legal action and establish a committee to impose their view. At no stage is there the suggestion that the owner will be compensated for the time wasted and the lack of return the asset is providing.

Of course, this poor, silly owner is fully responsible for items like rates imposed by council and land tax - and can be ordered to allow access for inspections and provide information as ordered by the courts.

It seems that the right of ownership of land has been seriously degraded in recent times. The right of " the community " takes precedence in determining the use of privately owned land and the owner is pushed into the background.

Perhaps the time is approaching when delay caused by objectors is subject to court imposed compensation.

In that case, those wishing to impose their will would need to put their money where their mouth is !

Sunday 15 March 2009

What if ..... ?

The Chinese premier made a remark earlier this week that should alarm world leaders. Premier Wen Jiabao said that he was worried " about the safety of our assets " !

He was referring to the $A 1.11 Trillion in US Treasury bonds that China has invested in the US economy. For decades the surplus from China's burgeoning trade balance has propped up Americas deficits - and now the world recession has cast a doubt on America's financial stability and ability to repay.

China has long been an enigma. It is the only successful Communist economy and balances rigorous - and often brutal - control of it's citizens with a fast expanding capitalist industrial base.

At the same time it has been steadily expanding as a military power, and is now entering space ambitions by launching satellites and considering it's own space station.

World leaders must be trying to second guess just what the Chinese leadership is thinking, and several troubling options are open to them.

What if they decide that further investment in the US economy is too risky - and announce that they will make no further purchases of US Treasury bonds ?

The result would be instant - and catastrophic. The sub-prime mortgage debacle would pale into insignificance. The loss of confidence would see markets plummet and chaos reign on the worlds bourses. We would need to find a new word, because " Depression " would not describe the situation that would follow.

What if this rejection of American dollar value caused what has become " the world's currency " to slide into free fall ? The oil producing countries - not exactly friends of the United States - could refuse to supply oil paid for in US dollars. The effect on both the US and world economy would be shattering - and without oil the mighty US military would be crippled.

What if would military domination was high on the Chinese wish list ? By deliberately throwing the world economy into chaos the Chinese leadership could argue that it's rigid internal control could preserve order within the country and allow it to survive the meltdown.

What if the Chinese plan was to extend just enough credit to Europe and the rest of the world to allow enough Chinese exports to keep their economy moving ? Mass unemployment in China could be kept under control by it's police and military and it would emerge as not only the world's banker - but as the primary military power.

At the moment we live in a fragile world trying to chart a course back to recovery. There is no doubt that the capitalist west has been foolish in not cracking down on greed and sloth in government policies - but it is also evident that China is enjoying a huge advantage in occupying the prime source of wealth amongst the nations of the world.

What remains to be seen is whether the inscrutable Oriental mind of this most populous of countries is willing to take a huge chance and opt for world domination - or whether it will remain within the world family and be content to go along with a gradual recovery.

The number of " What ifs ... " in play present a chilling scenario !

Saturday 14 March 2009

The " bottomless " pit !

Wollongong ratepayers are entitled to be angry that yet another cost blowout has occurred on that " bottomless pit of public money ", the Southern Gateway Tourist Centre at Bulli Tops.

This project - originally estimated to cost just $ 1.5 million - is nearing completion and has so far eaten a whopping $ 11 million of public money. Now it seems that there is a dispute about the " orientation of lettering " on a $ 20,000 sign recently erected. This will need dismantling and be reworked - at an unknown additional cost.

When a simple project soaks up an additional $8 million of ratepayers money, takes years longer to complete and the people responsible can't even get something as basic as the wording of a sign right it leaves a distinct impression of incompetence in people's minds.

There is an uneasy feeling that - when and if they manage to actually make the new opening date sometime in April - that this project will continue to be an ongoing drain on council funds.

What are the odds that it runs at a loss and needs regular injections of money to remain open ?

It certainly does nothing to instill confidence in council's ability to manage projects - and we are talking about either opening the Mall to traffic, or spending big money refurbishing this CBD icon.

We would need to think long and hard before putting trust on whatever estimate council offers for this work !

Friday 13 March 2009

The great electricity deception !

Now it becomes clear why the New South Wales government has been so desperate to rid itself of the state power industry.

The Independent Pricing and Regulatory Tribunal ( IPRT ) has recommended an electricity price hike of 21.5%, effective from July 1. This would see the price of electricity increase by $ 180 a year for the average household.

The reason for the price hike is a claim that the wholesale cost of electricity has risen. The Australian Energy Regulator ( AER ) has not specified why this is so, but it certainly is not because of a rise in raw material costs.

Coal is the source of electrical power in this state, and the economic downturn has seen demand for coal drop sharply - and prices have actually decreased.

Of course this rise in power pricing is a giant confidence trick. It is a variation on the old " Good cop. Bad cop " routine.

The IPRT comes out with an inflated price increase. The government beats it's breast and declares it will save the poor taxpayers - and reduces the hike by a percentage point or two.

The great unwashed heave a sigh of relief - and renew their vote for this saviour that has prevented them being dragged screaming to the poor house !

Interestingly, this power hike has nothing to do with the coming carbon reduction scheme, due to start next year. The pundits estimate that this alone will see an electricity increase that will decimate household budgets.

What it is really about is making electricity provision attractive to the private sector who the government hopes will put up the money to build new power stations. The state government is financially unable to find funds for this purpose, and at the same time a power price increase can be used to renew the electricity infrastructure on the rail network - which is unable to cope with new trains which will soon start to arrive.

It is said that the only certainties in life are death and taxes !

Be prepared for the price of electricity to surge several more times until it reaches a level that either brings the private sector into ownership - or reaches a milch cow level at which the state government can not afford to relinquish it.

In the interim - it would be a good idea to keep a good supply of candles on hand !

Thursday 12 March 2009

The Mall - Decision time !

Once again Wollongong Council has ducked the issue and delayed a decision on the fate of the Mall.

Despite survey after survey and the matter being exhaustively debated the three government appointed administrators have flick passed a decision to the government architect's office.

Why a government architect - located in Sydney - could be expected to deliver a wise decision that escapes the trio charged with running local government in this city is beyond belief.

Basically, there are only two points of view. Business owners who operate in the Mall know that the present arrangement is a failure and they want a varying degree of motor traffic to breathe life into the CBD.

The public are united in their opposition to the Mall being opened to traffic. They want it refurbished and modernised, but to remain as a pedestrian only precinct.

The two views are diametrically opposed. Only one can be chosen - and those holding the losing view will be bitterly disappointed.

The problem is that Gabrielle Kibble, Col Gelatly and Robert McGregor are faint hearted and keep passing the buck !

They were given a job to do. It is time that they bit the bullet and made a decision - right or wrong - and removed the indecision that is hurting this city.

Anything less is a dereliction of duty !

Wednesday 11 March 2009

Wollongong - the " Nightmare " cometh !

The citizens of the Illawarra can look forward to slow strangulation as Port Kembla expands - and our road and rail system doesn't !

Projections reveal that the F-6 linking this area to Sydney will see traffic double by 2030 and yet there are no plans to extend the dual carriageway beyond Engadine. The road is already reaching saturation at peak, but there are not even forward future plans on the drawing board to bring relief in the next half century.

Then there is rail. We have been promised a faster service to Sydney and there were plans - long abandoned - for a tunnel from Thirroul to Waterfall. Now we learn that the new carriages being built will not be able to go into service anyway because they use too much electricity to be accommodated by the antiquated system servicing the rail network.

There is not even space to park them when they are delivered. Most likely some will be dumped at Waterfall, to become art boards for the graffiti artists who delight in defacing rail stock.

Huge amounts of money have been spent providing toll roads and tunnels in Sydney, and yet traffic in that city remains a disaster. The state government seems Sydney-centric and is ignoring the reality that commerce needs to move people and freigtht from the north coast, the west and the Illawarra if we are to have an economy that actually works.

This need comes at the worst time with the present economic downturn - but sheer survival by way of jobs growth and a surge in commerce requires that transport and people be able to move freely.

Providing this seems beyond the ability of our state government. Survival may depend on the Federal government taking a greater role and assuming responsibility for road and rail nationwide !

Tuesday 10 March 2009

Blaming the victim !

There is no doubt that too much alcohol is the main culprit in the bad behaviour of sporting figures.

The media reports contain a regular diet of pub brawls, bashing of wives or girl friends, damage to public property - and in many cases sexual assaults. The one common factor is the consumption of copious amounts of alcohol prior to these events.

The sporting clubs and authorities do not have a common approach to handling such claims. Sometimes the alleged offender is stood down from play and sometimes contracts are torn up if the charges progress to conviction in the courts, but often the first reaction is denial and a cover up !

The ability of a sporting team to win games usually relies on the availability of a star player. These " heroes " earn big money - and often have a big ego to go with it. Their faces bring instant recognition and they are feted wherever they go.

This brings with it a number of dangers. Some other young men feel jealousy and go out of their way to provoke a fight. Some young women present themselves as " sexually available " in the hope of joining the young men in a glamorous social lifestyle. Alcohol blurs the image - and often leads to disaster.

What is becoming disturbing is the tendency of fans to excuse boorish - even vicious behaviour - and to blame the incident on the victim.

In a case under investigation people who can have absolutely no knowledge of the facts are heaping abuse on the alleged victim, suggesting that she is seeking her " fifteen minutes of fame ", is a " drama queen " or even that she instigated the supposed incident in the hope of monetary reward.

It is a sad attitude to life when sporting fans simply disregard responsibility on the part of sportsmen and abuse their victims as a show of loyalty to the team or game that they support.

This simply sickens the public and drives fans away from attending games - and could be one of the reasons that many sponsors are having second thoughts about paying big money to promote " sporting stars " - whose actions later bring them and the product they represent into disrepute.

Often, the very product behind the sport played - is alcohol !

Monday 9 March 2009

Mother Nature's vendetta !

Many people must wonder what Australia has done to enrage the weather Gods !

At the same time Victoria was having the worst fire storms in the history of this country Queensland was reeling from record floods. An area the size of South Australia was under water - and for some areas this was repeated several times over a few days.

It seems Mother Nature is still on the rampage and we now have Cyclone Hamish roaring down the Queensland coast.

Hamish was at one stage a category five. It has degenerated into a category four, but that is still the type of cyclone that packs house destroying winds - and the ability to create storm surges that wreck coastal communities.

No doubt we will survive, but a sure casualty will be insurance premiums.

The payouts in both Victoria and Queensland will be huge - way higher than in any normal year - and we still have Hamish to be added to the bill. As a result, the share price of insurance companies on the stock exchange have taken a hit. That will deliver another blow to the self funded retirees who look to dividends for their living money.

Strangely, the one state that had escaped all this carnage seems to be New South Wales !

We have had a quiet bush fire season this year. Practically no violent thunder storms with hail damage - and the only reverse to this good fortune seems to be an enduring drought.

Tread very carefully in the months ahead. Do nothing to enrage those sleeping weather Gods !

Sunday 8 March 2009

Our changing world !

Last night hundreds of thousands of people turned out to see the Sydney Mardis Gras. What a difference between that and the first Mardis Gras back in 1978 when the parade became a running battle between the marchers and police.

A permit for the 1978 parade was refused by the government and the churches encouraged official efforts to shut it down. On that occasion, the public gave support to the event - and the winds of change began to blow through public opinion.

Another contentious issue remaining is abortion. Abortion is freely available in New South Wales, but that freedom balances on a very fine edge.

Officially abortion is a crime and if a person is found guilty it could attract a ten year gaol term.

What keeps the police - and the churches and the moral crusaders at bay - is a judge's ruling that abortion is permissible if it is necessary to prevent " danger to the woman's health ".

This interpretation is wider than a barn door, and could cover anything from " anxiety " to " the inability to cope financially with an extra child ".

It is about time New South Wales bit the bullet and brought it's abortion laws in to line with Victoria and the ACT - where abortion is a health rather than a crime issue.

And - while we are about it - how about a rethink of the marijuana laws ?

A huge proportion of the population has the occasional drag of " pot " and the number of plants grown in backyard sheds and secluded gardens must be enormous.

And yet this seems to be the major target of the drug enforcement people, with more convictions for marijuana than heroin, cocaine, ice and ecstacy combined.

Other parts of the world have legalised marijuana for personal use - and planet earth did not cease to spin as a result !

About time we stopped wasting law enforcement money and effort on something the people want and accept, and applied a similar tax regime to tobacco.

In the present economic circumstances - the tax would help rather than hinder a needed recovery !

Saturday 7 March 2009

Funny money !

The Bank of England has just announced that it will take " quantitative measures " to ease the economic crisis that is destroying world trade.

What that means is that it will use the printing presses to generate $ 163 billion of new banknotes and put that money into circulation to ensure that the drought in bank lending is broken.

The Bank of England was once the world's most respected issuer of currency. After the second world war the American dollar surpassed the British pound as the premier currency in world trade.

The value of money depends entirely on the respect with which it's issuer is held. In the case of the Bank of England, this respect goes back to the days when any reputable currency was backed by the " Gold Standard ".

A paper banknote had no intrinsic value, but the fact that the bank that issued it promised that for every one of it's banknotes in circulation the bank crypt held gold bullion of equal value provided a guarantee.

In effect, the banknote was a promissory note, guaranteeing that if it were presented at the issuing bank it would immediately be exchanged for it's face value in gold.

The Gold Standard was abandoned many decades ago and now the value of a nation's currency relies entirely on the faith and goodwill that the public have in the trading standards and governance of that country.

The fact that the Bank of England is now running the printing presses and intends to inflate the currency in circulation by $ 163 billion must send a chill down the spine of any economist.

Over centuries that was the act of desperate dictators and governments on the brink of collapse. Printing huge amounts of cash to fund government spending was a sure way to surge inflation - and ultimately cause a collapse that made that money worthless !

We are in a recession. There is no doubt that it is a world recession - and it may well turn into a full depression.

What is happening with the printing presses of countries like Britain makes it clear just what disaster is in store for world finance !

Friday 6 March 2009

The smell of a rodent !

The government of New South Wales is desperate to rid itself of the power generating industry. It is so desperate that a failed plan saw the demise of former premier Morris Iemma at the hands of the unions.

Now there is a new attempt under Nathan Rees, this time directed at the distribution arms of the power industry and retaining in government hands the actual generating plants - for now !

Citizens of this state have a right to ask themselves several rather important questions.

Finance Minister Joe Tripodi has suggested that the trading rights of Energy Australia, Integral and Country Energy would be worth $ 10 billion in the present economic circumstances. Merrill Lynch considers that their sale could bring in $ 13 billion.

Why would buyers part with that sort of money for something the government presently owns if it were not going to earn them fantastic profits ? And if it is so profitable, why is the government selling it ?

What does the government know that it is not sharing with the citizens of this state ?

It is interesting that the sale is open to offers from countries such as China, but there has been no suggestion of floating on the stock exchange and allowing Australian citizens to invest in power distribution.

Somewhere in the murky recesses of what passes for government in this state the movers and shakers know that electric power is a poisoned chalice for governments that rely on the public to vote and keep them in office.

They may be frightened of the coming carbon trading regime and the surge in costs to households or they may be frightened of the huge outlay that someone has to spend to create new power generators.

Then there is the hysterical debate on what sort of power generation decisions the public will accept. The cheapest option would be a few more coal burning stations, but the option of wind,wave or solar will stir powerful emotions - and have an impact on voting intentions - and then there is the elephant in the corner - the option of going nuclear !

The one thing that anyone with the most modest grasp of economics will understand is that if bidders are prepared to pay billions for an industry the government is desperate to quit they will only do that if they foresee huge rewards by way of profit from that purchase.

If energy is in private hands it is a sure bet that prices will rise to deliver that profit.

The people who presently own that asset have every right to demand that the state government come clean and put all the economics on the table before this sell off goes any further.

The chances of that happening are about the same as the Tooth Fairy leaving the winning numbers of Lotto under your pillow before the next draw !

Thursday 5 March 2009

Educate - or perish !

The Federal government has set a goal of forty percent of Australians in the age group 25 to 34 holding a degree from a university by 2025.

To achieve this, student places at Australian universities will be deregulated from 2012.

What that means is universities will have the say on how many students they will accept for each course, but the fees to be charged will rest with the government.

Some critics see this as delivering a serious down grading in course standards. Cramming more students into existing courses without any degree of control over income is a sure way of fragmenting the ideals of higher education.

What is does illustrate is the absolute necessity of every young person to get the best possible education if they hope to survive in the future business world.

The day is long gone when it was possible to leave school at fourteen or fifteen years of age, find a labouring job with the local council - and go on to own a home, have a family and live a fairly prosperous lifestyle.

The children of Aboriginal families living in remote locations, children from homes affected by drug addiction, crime and poverty who are not encouraged to even attend school face a bleak future in the workforce. Their prospect of attaining that university degree can only be an illusion.

The magic of automated production machinery and the age of the computer have created an imbalance. We are destined to have too many people and too few jobs in the future world knocking on our door.

Society seems destined to become even more fragmented with a permanent underclass of those who lack the education to compete for a way of earning a decent living.

It is a sobering thought - and something which should encourage all parents to make every effort to encourage their children to stick it out at school. Those that don't will not be thanked in later life !

Wednesday 4 March 2009

Sport - the new war front !

The usual reason for terrorist acts can be attributed to religion or politics. Now a new front has been opened - sport !

It is hard to find a reason for the attack on the Sri Lankan cricket team in the Pakistani city of Lahore. There has been an ongoing civil war in Sri Lanka for decades, but religion is not a major cause.

It is basically a fight between the minority Tamils and the majority Sinhalese over a self governing area for the minority and revenge for past injustices. It is hard to see how this concerns the attackers, who are most likely the same Muslim terrorists who recently caused death and destruction in the Indian city of Mumbai.

Here in Australia a Muslim terrorist cell was planning to bomb the AFL grand final in Melbourne. They were disinterested in football and their aim was to cause mass Australian casualties simply because the Australian population is not Muslim.

It seems that sort of attitude is now being concentrated on sport. Bomb a shopping centre somewhere in the world and it rates a column on page three of the world press. Bomb a major sporting event and the attackers are assured of banner headlines on the front page.

It seems that this is opening a new front in the Muslim terrorist war against the rest of the non-Islamic world.

Both India and Australia declined to tour Pakistan for a cricket test series because of the threat perceived. Sri Lanka put their faith on the popularity of the game in
that country - and paid the price !

We may be seeing a new threat to the whole sporting spectrum. Cricket may only be the beginning. The Soccer world cup - international Rugby - the motoring Grand Prix - any number of events where world attention is concentrated and large crowds attend may be the target of terrorists seeking to make a point.

There is no sanity in terrorism. Reason simply does not exist. Terrorists are not content to practice their own religion and seek to ram it down the throats of all others on this planet.

There is no prospect of reaching conciliation with them and if sport is to become the new front line then a great change in style will take place.

Total defence of sporting events will be impossible and we will probably move to the day when teams compete in heavily guarded stadiums - but without stands filled with spectators.

The people who watch sport will be at home - watching the game on television.

It will thwart the opportunity for terrorist attack, but at the cost of one more blow to the interaction of people of goodwill to meet together and enjoy each others company !

Such is the world in which we live !

Tuesday 3 March 2009

The Shuttle !

Later this month Wollongong will gain an innovation that most cities can only dream about - free public transport !

A stream of free Shuttle buses will connect Fairy Meadow in the north with the entertainment district, the city CBD and the Mall, the railway station, the hospital precinct, and the University.

Buses will run both ways at ten minute intervals at peak and twenty minute intervals off peak - and the service will be available 7 am to 10 pm weekdays and 8 am to 6 pm weekends.

The whole idea is to free up parking in the city by reducing the number of cars entering the CBD, saving people money by driving less and making Wollongong a vibrant, friendly city that can be accessed by public transport - for free !

This marvellous idea will only work if people make up their minds to use it - and we are a lazy lot, set in our ways and almost married to our cars. There is a chance that the project will fail and be discontinued if patronage becomes a myth.

We complain about the cost of petrol and we complain about the scarcity of parking. It would make perfect sense to park the car out of the city centre, hop on the Shuttle and do whatever we intend to do - and then take the Shuttle to return to our car.

Most people will agree that this would be a good idea. Actually doing it may be something entirely different.

If we want a better city with free public transport we can have it - provided we use it ! Unfortunately - human nature being what it is - it is likely that the majority of people will simply pay lip service - and continue to use their cars to access the city.

If that happens - and the Shuttle fails - we will not be " the city of innovation " - we will be just plain - simply - stupid !

Monday 2 March 2009

A waste of money !

Australia has just donated twenty million dollars to help the rebuilding of homes and other infrastructure destroyed in the Gaza strip.

It sounds like a good humanitarian idea, until you consider that the government that administers Gaza will continue to fire rockets and make war against Israel - and in due course Israel will retaliate and all the reconstruction will again be laid waste.

The apology for a government that rules Zimbabwe has recently failed to attract a gift of $ 3.8 billion from donor countries to feed it's citizens and try to contain an outbreak of cholera that is killing thousands.

Zimbabwe used to be a food exporter. It's policy of seizing white owned farms and giving them to cronies of it's president - and letting them become unproductive has created famine. Any money given to alleviate distress is merely propping up a catastrophic regime.

We are a generous country and quick to help neighbours in distress, but times are hard and there is no point in throwing good money after bad if the reason a neighbour is in distress is not being addressed. In most cases that means a change of government.

In many cases the only way regimes that are the reason for war and famine can be torn down is if the population reaches the stage that they have to act to bring that about.

Giving aid merely prolongs the day of reckoning. It may seen hard hearted - but sometimes " tough love " is the better option !

Sunday 1 March 2009

Another Civil Liberties fiasco !

Cornelia Rau ( 43 ) the woman who our civil liberties people claim was shamefully treated when held for ten months as an illegal immigrant in an Australian detention centre - is now in a Jordanian gaol - and will likely be deported to Germany.

At the time of her arrest in Australia Rau claimed to speak only the German language, claimed to be an illegal immigrant and showed signs of psychosis by stripping nude and smearing her faeces over the walls of her compound.

Civil Liberties - the same people who ferociously fight any suggestion of identity documents for Australian citizens - claim her detention was all Australia's fault and she should have been instantly recognised as an Australian citizen - and not locked up as an illegal immigrant.

She sued the government - and was awarded $ 2.6 million compensation.

Now she is in trouble overseas - and again Civil Liberties say it is all Australia's fault !

They claim she should not have been allowed to travel overseas because there was the risk she would fail to take her medication, and revert to a psychotic state.
Can you imagine their reaction had the Australian government refused her a passport and put a ban on her leaving the country ?

Rau did just that in Jordan. She refused to pay legitimate bills for accommodation - and started stripping off her clothes in the street of this strictly Islamic country.

Rau holds both Australian and German citizenship, initially refused help from the Australian embassy - and Jordan will probably deport her to Germany, despite her relatives being in Australia.

This just highlights the farce of the Civil Liberties people. Damned if you do - and damned if you don't !

The annoying thing is that after deportation she will most likely return to this country, and with help from the same Civil Liberties people commence another court action for some form of compensation.

In the eyes of many that $ 2.6 million was completely unjustified. Australian authorities did the right thing in restraining a person who posed as an illegal immigrant - and we would criticise them had they not acted quickly.

It's about time we had some sanity in our legal system to prevent these time wasting and costly court actions - and to deliver blame to where it rightly belongs - on the head of a person who sets out to deceive.