Wednesday 31 July 2013

" Buying " jobs !

General Motors Holden has it's hand out and demands another $ 200 million from Australian taxpayers to remain a local car manufacturer - and that is despite a $ 275 million handout last year - which was supposed to guarantee production until 2022.

This is probably a result of changes to the " Fringe benefits tax " and it's application to company supplied cars.  As a result, car leasing companies have shed staff and the industry expects a glut of car stocks to be shed at heavily discounted prices, further dampening demand for the local product.

This is further exacerbated by the move away from the type of cars we manufacture in this country.   In past decades, the big " Australian six cylinder " was the favoured choice of most families.   Now the " SUV " is the vehicle in most driveways - and buyers are offered an amazing choice of smaller fuel efficient cars from South Korea, India and China.

GMH is a mere shadow of it's former self.  Back in 2004 it employed 7,000 people.   Today, that figure stands at 1,700.    It recently sacked 400 factory workers and 100 engineers from it's plant in South Australia.

Some would think that spending $ 200 million to virtually " buy " just 1,700 jobs is a gross waste of money, but the actual car manufacturers are just the tip of the iceberg when it comes to job numbers.

The three existing car manufacturers - GMH, Ford and Toyota - support a huge number of companies that provide the componentry that goes into Australian cars.
Ford has already decided to quit manufacturing in Australia and the dip in production runs means at least staff layoffs - and probably the end of some of the smaller supply firms.   The question mark hanging over GMH makes the continued existence of the car component industry uncertain.   Any expansion is out of the question until things settle.

The big question is whether component volumes from GMH and Toyota will  remain viable when Ford leaves, or whether we are seeing the end of car manufacturing in Australia - and what other form of manufacturing can we turn to  if we are to save the thousands of jobs in the existing car componentry industry ?

That $ 200 million might be money well spent if it buys us time to look for answers.    We have a vast array of  companies with the skill, machinery and knowhow to manufacture a huge array of items.

This is supposed to be the " clever country ".   Now we need our best and brightest to apply themselves in developing new opportunities to change direction and keep those component factories humming along.

That's where the real job numbers are - and those are the people we can not afford to let join the dole cheque !

Tuesday 30 July 2013

The " Right to Silence " law !

The " code of silence " adhered to by members of criminal motorcycle gangs provoked the state government in passing laws to remove the " right to silence " when police wish to interview a suspect.   A person who refuses to be interviewed by police could find that a magistrate or a jury could be instructed to take an "  adverse inference " to later evidence not disclosed at that time of interview.

Strangely, that and another law change requiring both the prosecution and the defence to disclose their cases to each other pre-trial have both passed parliament, but have not been forwarded to the governor for signing into law.

The main reason that they are " on hold " is probably the disquiet they cause to members of the legal profession.    The law is full of " if's, but's - and maybe's " and this law change makes no attempt to address any of the nuances involved.

Most solicitors advise their clients to make no statements until they receive legal advice.  They have the right to have their legal representative present at a police interview and to receive advice on what questions they must answer.   It is not clear if this law removes that right !

The law change requiring both the prosecution and the defence to exchange their case strategies prior to trial is even more troubling.   The obvious intent is to free up court time by sorting out the intricacies and reaching some sort of plea bargain that is acceptable to both parties.

This seems to intrude into the accused's right to the assumption of innocence until proven guilty.   If the prosecution has a weak case and hears the defence argument pre-trial, it can then delay further action while it strives to demolish the very foundation of evidence that the defence will present.   It also destroys the time honoured tactic of defence to spring an " ambush " on aspects of the prosecution evidence.

If these law changes do get signed into law, expect years of litigation as the legal system determines precisely what they mean and how they will be applied to the system of judgement that applies in our courts.

Passing any new law is only the first step in that long and costly process !

Monday 29 July 2013

Technology update needed !

When it comes to travel safety, trams and trains usually offer the best option.   It shocks many people to learn that one of the high speed " Bullet trains " in Europe crashed and killed seventy-eight passengers, and left scores of others with massive injuries.

What is even more shocking is the contention that this express Madrid to Santiago De Compostela train took a bend at a speed of a hundred and ninety kilometres per hour - when the limit on that portion of track was a mere eighty !

How is this possible - in an age when the designers of next generation cars are developing automatic braking systems coupled with radar vision to stop the vehicle when a collision seems imminent ?

High speed trains are a technology marvel - and yet their speed is in the hands of a human driver.   Worse still, this particular driver seems to have had an urge to speed because he posted a picture on social media showing his trains speedometer registering two hundred kilometres an hour - and joked how this would shock the highway patrol cops policing highway speeds.

The technology exists to regulate the speed of trains to the safety limit designated for each stage of the journey.  It should be impossible for the driver to exceed those limits, but possible for a speed reduction if weather or external factors pose an unexpected risk.   The task of the driver should be that of an observer, trained to add the human factor to an otherwise automated process.

This train crash in Spain adds a new dimension to train design.  It is a fact of life that some humans are addicted to risky behaviour and when we fly we know that most of the journey will be handled by the " auto pilot ".    What we are seeing now on high speed trains is the entire journey requiring the " hands on " skill of the train pilot.  The " auto pilot " has not yet been added to the rail system.

Accidents are the moving force to create safety.   This Spanish train crash should move the boffins to improve technology to ensure that never again can human error in exceeding speed cause a repetition !



Sunday 28 July 2013

The law of supply and demand !

If you buy a house anywhere in Australia - wait a few months to take advantage of rising real estate values - and then sell it for a profit - that's legal !    Of course the government will get in for their cut.   Years ago they muscled into any gain we made buying and selling with the " Capital gains tax " !

That same profit motive applies to big social events like major sporting fixtures and concerts given by famous people.   Some people stand in the queues and buy as many tickets as possible - and then when the event is sold out - hike those tickets to desperate people at extortionate prices.    They are called " scalpers " !

Usually, the government misses out on their cut.   For a start, it would be rare for Scalpers to lodge a return and reimburse the tax man for that ten percent GST - and few Scalpers admit profits from scalping when they do their tax returns - so the Feds dip out on the " Capital gains tax " component.

Now the major sporting codes and the state government are proposing a crack down to put scalpers out of business.  Usually, tickets for sale at inflated prices are advertised in the social media and showing a picture of the actual ticket offered may be made mandatory.   This will allow the event organiser to identify the seat number - and refuse entry when the ticket is presented.

Of course, that will not work if the Scalper mingles with the crowd outside the ground and quietly sells his wares to those desperate to find a ticket - and who know the signs to look for to make that happen.

The surprising thing is that what in every sense of the word is a normal facet of the law of supply and demand is being attacked.    The whole world of commerce relies on a profit by buying something that can be resold at a higher price, and the key is usually " availability ".      The moment something is in short supply, the price increases !

People grumble at the prices Scalpers charge, but it is their choice to part with the money to achieve what they believe the outcome is worth, so it's hard to see any harm done.  

Interfering with the law of supply and demand is something legislators do at their peril.  Many have tried that in the past - and many have failed !

What odds that a decade from now the Scalpers are still plying their trade ?

Saturday 27 July 2013

An endless fiasco !

The world was stunned when Lance Armstrong was stripped of multiple Tour de France titles for drug use.   Now the spotlight has turned on  Stuart O'Grady, multiple Olympic medallist and Tour de France stage winner.   O'Grady wore the famed " Yellow Jersey " for three days - and now admits that he used the illegal drug EPO to enhance his performance.

O'Grady retired as a cycling participant, probably in anticipation of an event that is now coming back to haunt sportsmen and women of all competitive codes.  The specimens of blood and urine collected at doping tests are kept in perpetuity - and are being retested years after the event with new detection methods that were not even dreamed of at the time those specimens were first collected.

Legally, an eight year statute of limitations applies, but once those tests reveal guilt, there is nothing to stop the news flashing across the sporting world and that brings into moral question that persons right to claim fame and fortune arising from their sporting performance.

Fame is an aphrodisiac.   The urge to be " number one " is relentless and few can resist the pressure to use any method available to reach that pinnacle - and the rich monetary rewards that fame and sponsorship lavish on a winner in most popular sports.

The question people are starting to ask is - " Just what is the real purpose of dope testing ? "

The sport administrators claim that it is needed to ensure fair competition, but drug use is so widespread that some people think that any drug free competitor must be a rarity these days.   Perhaps the time has arrived to step back and allow sports people to develop their bodies in any way science can devise.

Most would agree that we need to draw a line to establish a reasonable time frame to put the issue of drug testing to bed.   If eight years is the legal statute of limitations, perhaps all blood and urine samples should be destroyed and no further testing conducted after that period.

We are locked in a battle that will be never ending.   Science will continue to develop performance enhancing drugs that are impossible to detect with current testing, but other scientists will develop better testing that will come into play years down the track.    Such is the nature of science.

We seem to be on an endless treadmill.    Only a savvy limit on the time frame will end the damage being done go all sporting codes !

 

Friday 26 July 2013

Cutting corners !

It certainly makes sense to try and get common standards that apply across all Australian states and territories.  The education system is a prime example of this need.  At present, we have eight entirely different education curriculum's to confuse and dismay any child who needs to change states during their school years.

Unfortunately, setting a common standard often results in a " one size fits all " approach, and this can be disastrous if it reduces safety standards.  Efforts are underway to create a common electrical licensing regulator for the entire country - and there are claims that this may lead to a lowering of standards.

The Master Electricians of Australia cite the deaths that occurred when the government rolled out the home insulation scheme.   Four people died in roof cavities because of a lack of regulations to adequately supervise the installation of insulation material, and there followed a spate of  disastrous house fires.

Many factors are crystal clear with hindsight - and hindsight always has 20-20 vision.

The initial draft of this new electrical licensing requirement seems to reduce the standards needed in some applications.  Electricity is an unseen and silent killer.   Taking even a small short cut can not only end the life of the person doing the work, it can leave behind a danger to trap the innocent householder or a family member.

Setting licensing standards for electrical work is not something to be rushed.  The government has promised to listen to the objections from the industry, but it all depends on the qualifications of those who will do this " listening ".

If this becomes the decision made by politicians, then we are all in trouble.  The same applies to decision making by groups of bureaucrats.  What sounds perfectly reasonable to a person untrained in the mysteries of wiring and electrical currents can be deadly dangerous if put into practice.

The final decision on these standards need an industry review, and probably the Master Electricians of Australia is the most qualified organization to do that job.
If they err on the side of caution - that would be a far better result - than the alternative !

Thursday 25 July 2013

Men of " Straw " !

A twenty five year old activist is facing court charged with releasing a bogus press release bearing an ANZ bank logo that announced that the bank was withdrawing a twelve billion dollar loan to fund the new Whitehaven coal venture.

This immediately wiped hundreds of millions of dollars off the Whitehaven share price.  The loss spread across all sections of society but the most damage was done to " institutional investors " - and that includes the companies that manage superannuation funds.

This young man probably thinks he is aiding the ecological lobby which wants to close the coal mines to stop coal use releasing carbon dioxide, which is one of the factors blamed for global warming.   His court appearance has attracted big numbers of supporters who are demonstrating for his release.

The charge he is facing carries a hefty penalty of a $ 500,000 fine or a ten year gaol sentence.  Neither would do anything to replace the financial losses suffered by innocent people - and  it seems that this activist is a " man of straw ".   It is doubtful if he has the ability to pay any sort of fine, nor to offer any form of compensation for the result of his crime.

This seems to be a tactic used by the " protest " industry.   People of substance join such movements, but are very careful not to actually get involved in illegal activities.   The movement carefully selects volunteers to do the " dirty work ".
These are people devoid of fixed assets who usually own little more than the few dollars in their wallet.  They are therefore immune to fines - and the law seems reluctant to send them to prison.

This tactic will be used again and again,  and the only way it will stop is if a courageous judge hands down a stiff term in prison - and the inevitable flurry of appeals fall on deaf ears.

This bogus press release had exactly the same result as if a man with a gun had held up the country's superannuation funds and made off with hundreds of millions of dollars.   Had that been the case, the courts would throw the book at him !

There is no such thing as an " acceptable crime " when the end result lowers the expectation of a comfortable retirement !

Wednesday 24 July 2013

Flexing it's muscles !

Neighbouring countries have very good  reason to be apprehensive.   Japan is about to emerge from the economic sloth that has seen it's economy wither in recent decades.   The paralysis of rapidly changing political leadership seems to be over.

Prime Minister Shinzo Abe's Liberal Democratic party has secured control of both houses of parliament and looks rock solid until at least 2016.   Abe has signalled a more aggressive stance for Japan on the world stage - and this looks like dumping the pacifist constitution forced on the country at the end of the second world war.

A defeated Japan had to bend to the victor's will.   It was only allowed a modest " defence force " and it's security was guarantee by a treaty shielding it under the American nuclear umbrella.   Abe believes that now is the time to consign the past to history - and that Japan must return to world councils as a country freed from all past restrictions.

The writing has been on the wall for some time.   Japanese history books used in the school system tell a censored version of Japan's conduct in the second world war.   Shrines to Japan's war dead include leaders convicted and executed for war crimes - and these are openly visited and honoured by political leaders.  Japan has been sabre rattling with China and other countries over islands in the South China sea - and Abe seems more aggressive in pursuing closure on this issue.

A more militant Japan will be of concern to neighbouring countries. Eventually, it must raise the nuclear issue.   The fact that both China and North Korea have nuclear weapons puts Japan at a disadvantage.   If the gulf widens between Japan and it's American protector, Japan may feel that having nuclear weapons is essential if it sits at the world table on equal terms.   This could spark a new  arms race in the Pacific region.

A Japan shaking free of it's past was probably inevitable.  It is surprising that it took so long, but the world of the twenty-first century is a very scary place and if Japan emerges as a military power it will certainly reshape the politics of the entire Pacific region.

Hopefully, this will not be a case of history repeating itself !

Tuesday 23 July 2013

Medical " Inequality " !

Ask the average woman what is her first and greatest medical fear - and the most likely answer will be " breast cancer " !    This disease has struck down many high profile women and as a result a finely tuned fund raising network is in place to not only research the disease - but to urge women to take precautions to catch the disease early, when a cure is possible.

In contrast, until recently the most common disease of men - prostate cancer - was virtually ignored, and yet this disease kills more men than the 2,600 women who succumb to breast cancer.    Each year 20,000 men are diagnosed with the disease and 3,300 die.

Prostate cancer is a mystery disease.   We do not really know what causes it and in many cases it remains in a benign stage for many years.   It is common for men to die of other causes and are said to be " with " prostate cancer - rather than died " of " prostate cancer.

Like breast cancer, early detection is the key and in most cases it is " treatable ".  The biggest problem seems to be a reluctance by men to discuss the disease with their doctor or subject themselves to the necessary testing.

Strangely, it is men who whole heartily support the breast cancer appeals to fund this disease research.   Sporting teams appear in the appeals trademark " pink " colours and give generously of their time and money to raise funds for medical research to find a cure, and yet few show much enthusiasm for a similar effort to beat prostate cancer.

Perhaps the medical people are overlooking the most important factor in influencing the decisions men take.    If women can be persuaded to accept the role of advising their husbands or boy friends to treat prostate cancer seriously - and getting them to have the necessary checks - then this disease could quickly reach the level of containment now held by breast cancer.

It is easy to under rate the power that the sexes hold on mutual decision making !

Monday 22 July 2013

Criminals - We do not need !

Australian taxpayers have every right to be angry at news from Nauru.   A mob of 150 Iranian asylum seekers rioted on the island because they were angry at the time taken to process their refugee status claims.   They caused sixty million dollars damage to the facilities when they took and held hostages - and torched the new, two storied accommodation blocks, the medical centre, administration offices - and destroyed the camp water tanks.

As a result, 545 other men are now housed in tents and 130 rioters are in detention and will face court.   What happens next is something that requires a vast change of attitude on the part of this country's reaction  to criminals who consider they have a " right " to force their way into this country - and who will disregard our laws if their wishes are not granted as quickly as they desire.

Australia is a signatory to a United Nations convention which seems to lean over backwards in awarding " rights " to anyone who claims to be seeking asylum.  This definition is both wide and porous, and applies to many who clearly wish to enjoy the economic benefits of gaining Australian citizenship.   The convention forbids returning those rejected to their home country - if any sort of danger still exists.

Australia needs to make it clear to the UN that we are not going to house people who come here with no intention of obeying our laws and being good citizens - and that includes those who riot and damage the property used to process their applications.   If returning such people to their country of origin is not acceptable to the UN, then we withdraw from that convention.

It is also prudent to re-examine the terms under which we grant citizenship.   As things stand, once citizenship is granted it is a safeguard against deportation, irrespective of any crime committed.    It would be  more equal to grant citizenship on a provisional basis.    A new citizen should be required to obey our laws and  live within the terms of the oath taken for a period of review - before that citizenship is finally made irrevocable.

The vast majority who pass through our immigration control system go on to become good citizens.   What is wrong with the present system is the lack of measures to quickly weed out and return those who have no intention of being absorbed into the Australian way of life - and who have scant respect for the Australian legal system.

Those 130 rioters on Nauru  failed their initial " citizenship test " !

Sunday 21 July 2013

A desperate measure !

Kevin Rudd knew he had to offer the Australian voters a plausible solution to the flood of asylum seekers reaching Christmas island - if he is to have any hope of resurrecting Labor's fortunes at the coming election.

What he is implementing will most likely have the desired effect, but at a cost that may come back to haunt us in the years ahead.

Papua New Guinea is our nearest neighbour - and it is totally reliant on Australian aid to keep it's financial head above water.   The look on Papua New Guinea's prime minister's face when he virtually handed Rudd a blank cheque to send an unlimited number of refugees to Manus island - said it all !

Papua New Guinea is a country still virtually living in the stone age.  It has a GDP of a mere $ 1844, Life expectancy is just 62.8 years, Adult literacy is 57% - and the murder rate of 13 in 100,000 people compares with just 1.3 for Australia.

This is a poor, under developed country with it's own ethnic tensions and even if this measure does stop the boats, those already on the water and the time needed for the message to sink in means that Manus island is going to receive thousands of people from Afghanistan, Iran. Pakistan, Sudan, Sri Lanka - and Vietnam !     The largest contingent will be men, but the influx will also include women and children.

You can be sure that this will attract the attention of the world media and Australia will be spending somewhere north of a billion dollars to create the facilities to house these people.

Kevin Rudd has used Australia's financial muscle to strong arm our neighbour for his own political gain.   His only concern is the impression it creates in the minds of the voters in the weeks that remain until they put pen to paper in a voting booth.

If Manus island then turns to tragedy it will do so in the full glare of world  publicity.   Australia will have washed it's hands of responsibility for our rejects - and Pap NG is not equipped to deal with a problem of that magnitude.

From a political point of view, this is a smart move.   It is also a desperate measure - and one that may go down in history as something that makes Australians cringe when the full after effects play out on the world stage !

Saturday 20 July 2013

Something in return for our money !

Many years ago - when the state government declared ownership of the fish in the sea - and slapped the need for a fishing license on recreational anglers - most people expected the cash gained to end up in that bottomless pit known as " Consolidated Revenue " !

We are about to gain an " Artificial Reef " to encourage an increase in the fish population, and it is going to be sited offshore from the mouth of the Shoalhaven river.    The exact location has yet to be decided, but it is promised that it will be near enough to be accessed by even the most modest recreational craft and it will be out of bounds to commercial fishing boats because it was paid for by fishing license fees.

This artificial reef will cost $ 955,000 and the specification is impressive.  It will consist of 800 cubic metres of hollow concrete cubes, each of which will have a height of four metres and weigh seventeen tonnes.    They will be sunk to the ocean floor, and over a period of time nature will endow them with algae and make them an attractive home for a wide variety of fish species.

This is a vast improvement on earlier artificial reef projects which mainly consisted of banding together used car tyres and sinking them in the ocean.    The problem was that they lacked both bulk and weight - and when one of the great storms rolled in the sea action either dispersed them or broke the bonds that held them together.

The north coast recently gained an artificial reef in the form of a decommissioned warship, but this will not be available to the fishing fraternity.   It is designated as a " dive wreck " and serious consequences threaten anyone dropping a fishing line in the ocean even in this wrecks near proximity.

At the time, many people who begrudge having to shell out for a fishing license questioned what fees the diving fraternity contributed  towards acquiring a home for their sport.

This Shoalhaven reef is a vindication that at least some of those fishing license fees are escaping the bottomless pit of  " Consolidated Revenue " !

Friday 19 July 2013

The " Waste Levy " !

It sounded like a good idea at the time !    The environmental people were concerned at the increase in carbon dioxide in the atmosphere and one of the sources was council landfills.   Not only carbon dioxide, but methane being generated by rotting garbage and food waste.

It became a target to promote recycling and reduce the volume of rubbish going into landfills - and the way to do that was deemed to tax the volume to encourage conservation and recycling.

We created a " monster ".    This " waste tax " has been steadily rising, and it is about to leap a whopping 16% this financial year.   As a result, council tip fees are going through the roof - and some councils are charging $ 265 a tonne for the stuff you take to the tip in your trailer !

This tax raised $ 479 million for the state government last year, and the majority of that disappeared into " consolidated revenue ".  A tax intended to fund conservation quickly became just another way of satisfying the government's insatiable need for more money.

Now we are reaching the ridiculous situation that some councils can not afford to dump the rubbish from their bins in their own landfills.   Because of this tax, it is cheaper to truck this rubbish to another state - where the tax levied is lower.

This waste tax is a state tax - and it stands to reason that states with a lower population do not have the same volume problem when it comes to rubbish. In particular,  Queensland is becoming the destination for New South Wales rubbish because of this anomaly.

It seems that we are stuck between two contrasting needs.   One of the prime reasons for having councils is for the creation of a place to get rid of resident's rubbish.    We are taxing that out of existence - and yet any move to reduce the " waste tax " to a sane level will deprive a cash strapped state government of revenue they can not afford to lose.

To do nothing - encourages an increase in illegal roadside dumping !

Thursday 18 July 2013

A Ghost from the past !

Kevin Rudd is proposing to tax company provided cars to prop up the government's bottom line when the carbon tax moves to an ETS.   To achieve that, those who have a company car will be required to keep a log book of all car movements for a period of time and log the purpose and length of each journey, thus establishing the ratio of business and private driving.

This was a plan implemented by a former Australian government several decades ago.  At that time, the log book period was six months, and at the expiry of that the business/private ratio so established - applied indefinitely.

Of course - it failed miserably !    Whenever the issue of money becomes a tussle between the creative minds of the business community and the bureaucracy trying to implement a control measure - dodging tax liabilities becomes a slam-dunk !

Some called it " creative accounting " !  For instance, should a business call be necessary in a distant suburb, on the return journey, a visit to a supermarket or any other type of store for a purchase would not fall into the " private journey " category.    A driver would have every right to book both the outward and inward drive as entirely " business " - and any other benefit would be ignored.

The government is hoping to gouge a $ 1400 tax from each of the 320,000 Australians who are provided with a company car as part of their renumeration. At present, the Fringe Benefits Tax ruling merely accepts that 80% of such vehicle benefits are " work related ".

This is a case of government thinking missing the point !   The bureaucratic mind simply sees a car as a benefit - to be taxed.   Industry sees a car an an integral part of a salary package to persuade a valuable employee to help the company expand it's profits.   In most cases,  provision of an up-market luxury car is seen as part of a " salary sacrifice ".   The " take home " pay is less - when a great car is thrown in as part of the deal.

If the government changes the rules, expect the incentives to attract the right people to take new directions.   Asking employees to provide their own vehicle - and paying a generous rate of compensation for each business kilometre driven - would allow the individual to choose a car of their choice - and surely accepting whatever an employee claims as " business " driving would be a matter between the employee and the company ?

This new tax proposal sounds good in theory.    Making it work is an entirely different matter - and when it comes to the bright minds of business engaging in war with the less than creative minds of the bureaucracy - that is usually a " no contest " !

Wednesday 17 July 2013

" Travel Insurance " Limits !

When we go overseas, most people take out travel insurance to cover the cost of medical treatment in the event of an accident.  It is a reassuring thought that the insurance company will pickup the tab for any hospital stay, and in the event of a serious injury - pay for a medical evacuation flight to get us back to Australia.

This week a young Australian woman suffered a serious accident in Spain.  She was gored by a bull - and along with hundreds of other people from various nationalities - she was willingly running through the streets of Pamplona in company with a herd of wild bulls.

This " Running of the Bulls " festival is an annual event in Pamplona.  There are always numerous injuries - some minor, but the death of people trampled or gored is not unknown.    The fact that people knowingly - and willingly - put themselves at risk raises the question of whether this is  covered by travel insurance ?

Some insurance policies explicitly exclude taking part in the " Running of the Bulls " from the cover they provide, and all insurance requires the insured to " take reasonable care " in the activities they undertake.    The wise will ponder this question - and sort it out before they leave Australia on their overseas holiday.

A question mark hangs over many events which have a " risk factor ".    The list is long, and includes Bungee jumping,  parachuting from air planes and riding in wicker baskets beneath hot air balloons.    Those intending to take raft trips through the " rapids " of wild rivers would also be wise to first clear this activity with their insurers.

All that seems reasonable - if we have such activities planned on our itinerary.   The trouble is that once we reach exotic places, opportunities beckon and we need to ask ourselves if we have cover against injury - or whether our entire financial future is at risk if things go wrong - and our insurer denies the claim.

The costs of a medical evacuation and hospital care in foreign lands is causing the insurance industry to tighten the rules of cover, and it is no longer adequate to expect that travel insurance covers all eventualities.   Even the age of the insured now becomes an issue.   Some policies exclude those in their seventies, and most decline to cover travellers once they pass eighty years of age.

It seems that travel insurance has passed from being a mere " formality " into the specifics of individual cover for intended events.    We need to know exactly what " risks " are covered !

Tuesday 16 July 2013

" Dead Man " walking !

There is something very disturbing about scenes on television at the conclusion of a trial in Florida.   The very basis of the justice system is to decide the guilt or innocence of the accused by presenting all the facts to a judge and jury - and letting them decide.

This trial has been a classical case of racial profiles predetermining the outcome in the minds of the public.   George Zimmerman ( 29 ) a Hispanic Neighbourhood watch volunteer, was patrolling an estate when he observed black teenager Trayvon Martin ( 17 ) walking back from the shops - wearing a hooded garment.

This led to am altercation in which Martin was shot dead.   Initially, the police declined to lay charges against Zimmerman.   Public outrage erupted and a special counsel was appointed, leading to a " second degree homicide " charge being processed and Zimmerman arrested and sent to trial.

The jury comprised six women, five of whom were white. Zimmerman's defence was that Martin had attacked him and the shooting had been in his defence.  All aspects of the case were widely publicised - and eventually the jury returned a verdict of " not guilty ".

During the trial - and immediately after the verdict was announced - hundreds of demonstrators bearing " Justice for Trayvon " signs flooded the streets of Florida. Zimmerman has received a huge number of death threats, and what is disturbing to many rational people - Hollywood celebrities and racial leaders are baying for Zimmerman's blood - and he is described as a " Dead Man walking " !

We seem to have descended into parallel justice systems.    The " judge and jury " deliverance of justice is only acceptable if the outcome suits the opinion of the mob on the streets.   If if doesn't - the hot heads of the mob take over and deliver their own brand of justice, and that can include an " extra judicial killing " !

There is every chance that if Zimmerman is to survive he will need to change his name and appearance and migrate to another area of the United States.  He will forever live " looking over his shoulder ", fearful that someone will recognise him.

It seems that the " law of the jungle " has replaced  " trial by a jury of peers " in delivering justice in today's world !

Monday 15 July 2013

Stopping the boats !

Another " refugee " boat sinking on it's way to Christmas island.   Once again navy patrol boats and search aircraft save some lives - at a huge cost to the Australian taxpayer.  In some cases, these rickety boats are barely out of sight of the Indonesian shore when they radio for help, and we are bending over backwards so as not to upset the Indonesian government.

Time for a realistic look at this entire " asylum boat " mess.   This is really an Indonesian tourist travel industry.   These are Indonesian vessels, flying the Indonesian flag and crewed by Indonesians who are - for a fare - conveying paying passengers to Australian territory at Christmas island.

We are well aware that the people smugglers ply their trade openly and from the vast profits, pay bribes to Indonesian police and government personnel to " look the other way " and not impede what they consider a " business " !

It's time we got tough and sat down and had a very terse talk with the Indonesian government.    Australia is a very good friend to it's near neighbour.  We are a generous aid donor and a trading partner, and we have every right to expect the Indonesians to pull their weight in stopping these boats from leaving their shores.

Just imagine if this was a trans Tasman problem.   If rising sea levels were causing Pacific island people to flee to New Zealand, and the Kiwi's were putting them in Kiwi flagged boats, crewed by Kiwi's - and dumping them on the Australian east coast ?

Of course we want to maintain good relations with Indonesia, but that is a two way deal - and we have every right to expect their help to solve what is really a mutual problem.   These " refugees " are openly flying into Indonesian airports with passports and travel documents - which they destroy when they get on boats bound for Australia.   Indonesia needs to crack down hard at its entry points and police it's marine traffic to stop this trade - and deport those claiming to be seeking asylum, but who have failed to register with the UN at their first landfall after leaving their old country.

The " asylum boat problem " and housing these so called "refugees " in detention centres is costing Australia billions.    We should be willing to divert some of this cost into helping Indonesia pay to put the people smugglers out of business. Stopping the boats could be a rewarding joint exercise of value to both countries.

It's time for some very direct discussions with the Indonesian government and if they refuse to do their part in stopping this trade, then there will be an inevitable " cooling " in relations and second thoughts on the aid we provide to that nation.

Maintaining goodrelations with a neighbour is not a " one way street ".   We expect something in return.     The time has come to sit down with our Indonesian counterparts - and do some very plain talking !

Sunday 14 July 2013

Up and above !

There is a distinct limit to the directions that Sydney can expand.   There is a national park to it's north and south, the ocean to it's east - and  the Blue mountains are a natural western barrier.   It makes sense to consider the vast amount of land laying idle - and the opportunity to utilise the air space above.

Planners are looking at the rail corridor covering the three kilometres from Central station to Everleigh.   Right in the heart of the city, this can provide the expansion room we so desperately need.   The technology exists to build above the rail traffic and utilise the existing amenities to cut costs.   The plan would extend over a twenty year time frame and be bigger than the $ 6 billion " Barangaroo ".

Perhaps this concept could be linked to another problem facing Sydney.   We are spending immense amounts of money to widen highways and create link roads, but every year the traffic flow at peak gets slower.

A huge number of people are employed in the city business centre.  Because we have a disjointed public transport system, many still use cars as their mode of transport.   We will never get people to leave their cars at home unless we provide a transport connection that offers reliable and fast travel - at an affordable price.

Our existing road system - which is clogged with cars - has above it air space which could be used to house light rail - which is the new name for what we used to call " trams ".    If we are thinking of filling in the air space above the rail corridors to house shops, offices and apartment living, why not extend the opportunity to " move people " by applying the same thinking to the air space above our road system ?

It would be a lot cheaper to build an elevated light rail system above existing highways than to dig tunnels under the city to create rail links - and the road system is already owned by the state.  

It would be a fallacy to think that this huge expansion of shops, offices and work opportunities offered by using the rail corridor as building space will not attract commuter traffic.   It needs to go hand in hand with the provision of a fast linking to the rest of the city.   An elevated light rail connection could provide that answer.

The opportunity exists to create in the heart of the city an expansion that will truly make Sydney a city of the twenty-first century !

Saturday 13 July 2013

No " Free Lunch " !

Some wit once observed that there was no such thing as a " free lunch ".    He was alluding to the fact that when " give away " deals are closely examined, the cost is always factored in to the bottom line.

Such is the case in the petrol price war being waged between grocery giants - Coles and Woolworths.   Several factors have come together in recent days.  We are nearing the end of the school holidays in New South Wales.  The Australian dollar has dropped in value against the US dollar - and political events in oil producing countries has sent the price of crude soaring to dizzy heights.  As a result, petrol has reached this year's high of well over $ 1.50 a litre.

Both the grocery giants are offering price relief to car owners.  Full page advertisements in national newspapers offer a discount of sixteen cents a litre from Coles and seventeen cents a litre from Woolworths - and these offers will end on July 18.

To qualify for this cheaper petrol, customers must spend a hundred dollars on a single purchase at one of the brand's supermarkets !

We are assured by the petrol selling industry that independents trade on margins of just two or three cents a litre on petrol sales and that is why most have morphed into " Seven Eleven " type stores.    They rely on petrol to bring customers into their stores and hope to make a better margin from the other merchandise offered.

It stands to reason that the grocery giants have factored in the cost of this " give away " when setting their shelf prices.  It is a classic case of the " loss leader " style of marketing.  Pick a popular item and price it below cost, and pick up the difference by adding a fraction to all the other goods that are not on " special ".

Of course,  there are winners and losers in this situation.    Pensioners and those others who do not run a car are subsidizing the petrol discounts by paying higher shelf prices, and those who do run a car, but buy just a few items below that $ 100 purchase level - are getting a negative reward.

One of the skills of the advertising people is their ability to create an " illusion ".
This " cheap petrol " is a case in point.   It is thinning the ranks of both independent stores selling groceries - and decimating the number of independent petrol stations in our cities and towns.

If it reaches an obvious conclusion, even that offer of a " free lunch " will quickly disappear !

Friday 12 July 2013

The " Funeral Insurance " Industry !

Funeral insurance advertising must be one of the biggest sources of income for the television companies.  It would be rare to enjoy a night's viewing without being subjected to at least half a dozen advertisements offering funeral cover for a surprisingly low number of dollars each week.

We are repeatedly told that even a no-frills funeral costs about six thousand dollars these days - and the insurer is offering a fast payout of fifteen thousand dollars within a short time after our death - and double or trebling that if the death occurs because of an accident.   Suicide is not covered during the first twelve months of the policy.

What many people fail to realise is that the price quoted is geared directly to our age when we commence the policy.   The following year we have become a year older - and therefore one year closer to the inevitable time that we will expire - and the premium will rise accordingly.

Buying insurance is really a form of gambling.   The insurance company is betting that most people will survive until the usual age at which people die.   If they keep paying annual premiums for that length of time, the insurance company has made a nice profit because it has gained well in excess of the money paid out from those premiums.

The policy holder is betting that if his or her death is premature to the average age of dieing, then the family gains a windfall by a healthy injection of money to more than cover funeral costs.    Death will not impose a financial hardship on the family.

The problem is that those ever rising premium costs can reach dizzy heights when the policy holder reaches age seventy - or even eighty - and these days those sort of life spans are common.    The policy holder becomes hostage to the need to keep paying - because to cease will see the policy lapse - and the expected cover withdrawn.

Customers would be well advised to check the facts carefully and do the sums to understand exactly what is involved.   It is also possible to obtain insurance to cover funeral costs where the premium is fixed at age of entry - and does not increase annually.   This premium is higher, but in many cases it delivers cover at a better outlay if the insured lives to an average age level.

The insurance industry is in the process of revising it's policies and we can expect to see exemptions from further payments over contracted  times that policies have been in force - and even a grant of partial cover if a customer elects to make no further payments after a period of time.

The advertising we see on television looks appealing - but the wise will do their homework and fully understand the implications before they sign on the dotted line !

Thursday 11 July 2013

Onus of proof !

" The Law " - or " Justice " - is usually depicted outside our courts in the form of a blindfolded woman holding the sword of vengeance in one hand and a set of balance scales in the other.    The onus is on the prosecution to prove guilt rather than the accused to prove innocence - and thereby the outcome of many cases becomes a mystery to those witnessing proceedings.

The Environment Protection Agency ( EPA ) has just abandoned a prosecution in the Land and Environment court because it has been impossible to " prove " what seemed an " open and shut " case.   When it comes to the law, that old axiom that " if it looks like a duck and it quacks like a duck, then it is probably a duck " - fails to apply.

Residents in the suburb of Girraween were dismayed when their suburban gardens began to die.   Scientists quickly found that the plants were covered in a mysterious white powder, and this was identified  as Metsulfuron-Methyl, known as MSN.

MSN is a chemical manufactured by the American chemical giant - DuPont, and DuPont have a factory right in the heart of Girraween.

That's where things get tricky.    If a manufacturer declines to say whether they manufacture a particular product at that plant, the onus of proof falls back on agencies like the EPA - and that brings into play a whole new set of privacy laws.  The fact that DuPont is one of America's biggest companies and has deep pockets to engage the best counsel probably had something to do with the EPA walking away from an expensive legal fight.

At least there is logic in making that sort of decision.    It is better to be pragmatic and avoid getting tangled up in hopeless legal actions when public money is involved.    The EPA legal team considered that getting a win would be unlikely - and as a consequence they would probably get stuck with the other sides legal costs.

Unfortunately, for the residents of Girraween it is definitely a  " no win " situation. Restoring their gardens will be at their own expense !

Wednesday 10 July 2013

A timely warning !

Television viewers have been fascinated by a disaster decimating the town of Lac-Megantic in Canada.   A runaway train rolled into the centre of this community, derailed - and exploded, leaving five people dead - forty missing and several entire blocks completely destroyed.

It is the followup investigation that makes intriguing reading.   It seems that this was a train that comprised five locomotives and seventy-seven tanker cars filled with crude oil.    It was parked on a down slope twelve kilometres out of town, awaiting a shift change, and the engineer and crew had set the brakes - and left it unattended.

Investigators are starting to suspect that this was not a simple " accident " !  It is quite possible that someone tampered with the controls and deliberately allowed this massive juggernaut to run loose.   If nothing else, this is a timely warning for other rail systems all over the world to carry out an urgent review of their work practices.

The problem is - complacency !    The way we did things half a century ago may not be a viable option in today's world.    The idea of simply walking away from a huge train loaded with a volatile substance, particularly when it is parked on a down slope - is an invitation to a terrorist or someone with evil intent to perform an act of sabotage.

This raises the question of how we manage shift changes in Australia.  Are there any instances when massive trains stand idle awaiting the arrival of the incoming crew - and could the event that happened in Canada happen here ?

In particular, the Australian rail system is a finely balanced mix of commuter traffic merging with heavy rail moving coal, iron ore, track ballast and probably oil through our cities and country towns.    The rail lines are busy at night, when commuter traffic is light - and in many cases freight trains give way to passenger traffic and stand idle during the morning and afternoon peaks.    How safe are they when stopped in marshaling yards ?

Safety is a matter of learning from accidents.    Events in Canada have highlighted what could be a very common rail practice.  Now would be a good time for our railway engineers to review the systems in place - and ensure that they conform to the hazards of the twenty-first century !

Tuesday 9 July 2013

A sad end for a great man !

The name " Nelson Mandela " will be writ large in the pages of history.  When we think of South Africa we automatically think of this icon who spent twenty-seven years in a prison on Robben island for daring to oppose the apartheid regime that held his fellow black citizens in bondage.

Eventually, Nelson Mandela triumphed and apartheid was swept away and Mandela became the first black president of his country, holding that office from 1994 to 1999.

Nelson Mandela is now a very old man.  Born on July 18, 1918 he is in poor health, suffering the aftermath of Tuberculosis from years of hard labour during his prison time.  He has spent his twilight years as the revered figure his people have needed to remind them of the long journey to freedom - and of the work that remains to be done.

Sadly, he is not being allowed to end his life without contention.  He lays in a hospital bed connected to life support machinery while bitter disputes rage amongst his family members.   There is the question of turning off that life support and letting him slip away naturally, but that is opposed by some of his loved ones.

At the same time, a virtual war has erupted over the destination of his body when life finally ceases.   Mandela's wish is being overruled and three of his children have been exhumed and their bodies reburied in a site favoured by some of his family.    It is rumoured that the Mandela burial site will attract thousands of tourists - and will be a huge money making concession.

There is also the chance that this entire matter will have to be settled in the courts, and during that time a man who deserves better will remain hooked up to life saving equipment and kept artificially " alive " in a hospital.

If that happens, it will be a sad end for a great man !

Monday 8 July 2013

" Legal " Drunks !

We have very explicit laws to cover driving with the proscribed level of alcohol in our blood, but - like most laws - there are loopholes !    In this case, it is the definition of just what is termed a " vehicle " !

In recent decades we have seen the development of " mobility scooters " to serve the elderly.  People with age or physical disabilities are entitled to use an electric scooter to visit the shops or move abut the community.   It is legal to drive them on footpaths - and most have a maximum speed capacity of less than ten kilometres per hour.

Another innovation to appear in our cities - is the Moped.    The old pushbike now comes with a small electric motor which contains a battery that can be recharged from a power point.   They are relatively cheap to buy, and the operating cost is negligible.

Some clever people have discovered that both the mobility scooter and the Moped are below the definition that applies to " motor vehicles " for the implementation of drink driving laws.   The police are not able to demand a breath test from the drivers of either, should they suspect that they are alcohol affected.  The sticking point is that both fall below that ten kilometres per hour stipulation to be a legal motor vehicle.

One of the problems facing the police is the lack of definition to label the capacity of either power sources.   The law requires Mopeds to be below a 200 watts capacity, but no compliance plate is required, hence it's actual power remains a mystery.    A big range of mobility scooters is fast expanding, and once again - there are no compliance plates involved.

People who have lost their driving license for a DUI offence are now using disability scooters or Mopeds to get home from the pub, safe in the knowledge that they are beyond the law and unable to be tested by the police.    The government is considering a law change to make speed capacity compliance plates mandatory, but this seems to be closing the stable door - after the horse has bolted !

At least these low speed conveyances are a lot safer for other people than having  drunks behind the wheel of regular cars !

Sunday 7 July 2013

The " Compensation " issue !

This week, motorists using the M2 to get to work found themselves caught in a fourteen kilometre traffic snarl.   This lasted for hours and as a consequence thousands were late for work and many self employed tradespeople lost significant earnings while they sat idle in their vehicles.

The reason given for this debacle was a " late finish " to scheduled overnight road work.  It seems that unexpectedly low temperatures caused waterproofing of the road surface to take more time and this extended the road work until well after the morning peak had started.

Many angry drivers are calling for the toll of $ 4.95 per car - and double that for trucks - to be refunded as a form of compensation.   The toll company - Transurban-Hills M2 - has refused.

Multiply the toll with the huge amount of traffic in the morning peak - and you arrive at a very large amount of money.   This was paid by people who were exchanging a fee for the promise of getting to their destination faster by buying the right to use a road that delivered that result.   On this occasion - that failed miserably !

This raises the question of " consumer rights " !   When a trader breaks a contract with a customer and fails to deliver the advertised quality, Fair Trading steps in and adjudicates compensation.    Why should this not apply when it comes to a toll refund ?

We will not get the necessary back-ups in the supply chain as long as those causing the loss are able to simply shrug their shoulders - and pocket the rewards - and walk away whistling " Dixie ".   A low overnight temperature was an predictable possibility.   That could have been overcome - had heat lamps been on site as a precaution. 

There is nothing like a looming loss of income to make job planners more cautious in planning work, and without such a threat - we will continue to have consumer failures treated with indifference.

The one sure way to get the trains to run on time - and to get the entire transport system geared to delivering a favourable outcome - is to levy a financial penalty for failure.

Loss of money is a huge incentive to good planning !

Saturday 6 July 2013

Diplomatic Immunity ?

It seems that the United Nations needs to establish a clear set of ground rules to determine just what is - and what is not - the legal parameters conferred by " Diplomatic Immunity ".   At the moment, interpretations seem to vary widely.

In Britain, we have Julian Assange holed up in the Ecuadorian embassy. He is safe from arrest while he remains on those premises, but Britain would arrest him if he was placed in an embassy car and transported to an embassy plane to fly him out of the country.

Britain claims that such vehicles are outside the protection of Diplomatic immunity - and yet years ago the entire staff of the Libyan embassy received such protection and were allowed to leave the country - to the fury of the British public - after a shot was fired from the embassy building that killed a young policewoman.

Controversy hangs over the protected status of " Transit Lounges " at International airports.   Passengers on planes making a refuelling stop are not deemed to have " entered " the host country - and are therefore safe from arrest while enjoying the comfort of these lounges.

We have the remarkable case of whistleblower Edward Snowden " living " in a Moscow transit lounge while he seeks asylum from various world countries, and now there has been what can only be termed  a " World International Incident " - which has seen the sovereign president of Bolivia refused permission to fly over several countries in an attempt to arrest Snowden.

There is suspicion that the United States used it's powers to coerce France, Portugal, Italy and Spain to withdraw entry rights to Bolivian President Evo Morale's plane when it was in the air, flying the president from Moscow to La Paz.   As a consequence, the plane was forced to make an emergency landing in Austria.

Edward Snowden was not a passenger on that aircraft - but it is mind boggling to even try to imagine the outcome if he had been and if he had been frog marched off to a gaol cell as a result of this clear breach of " Diplomatic Immunity " - which saw the rights of a president of a foreign country treated as some sort of criminal.

This is not a matter of achieving some sort of world consensus.   It is the job of the United Nations to spell out just exactly what are the terms of diplomatic immunity and require it's member nations to abide by that decision.   It is certainly not the right of individual nations to pick and choose what they will obey and make their own rules.

The very purpose of the United Nations was to bring stability into the management of world affairs.   Getting " Diplomatic Immunity " sorted out would seem to be one of the basic functions high on the list to be achieved !

Friday 5 July 2013

The perils of " Travel " !

" Seeing the world  " is the ambition of many young Australians.  Cheap air fares have made it possible to spend time in other countries and experience the culture and sights of how other people live.   For six young Australian people this has turned into their worst nightmare !

Now known as the " Peru Six ", these travellers were sharing an apartment in Lima when the buildings doorman inexplicably fell to his death.   The police investigated and initially concluded that this was a suicide.   The Australians continued their holiday - and eventually left the country and returned home - and all this happened over eighteen months ago.

The brother of the doorman has been agitating for a reopened investigation, claiming that the Australians threw him to his death.   This claim caught the attention of the media and drew support from friends and relatives and now it has become a " cause " gaining the backing of public opinion.   A judge has reopened the matter and demanded that the " Peru Six " return to Lima and face his court.

There is a very real likelihood that this may proceed to the issuing of a request for extradition.   The Australians have offered to provide a statement on the matter here in this country, but that has been rejected.   The case is gathering media turmoil in Peru and it is hard to imagine that a fair trial is possible if they return.  Hysteria has replaced reason, and despite any sort of evidence - an expectation of guilt is hanging in the air.

Australia and Peru have exchanged extradition agreements and if Peru raises the matter with Interpol it will probably result into a world wide arrest order.  Australia can then demand to see evidence to support extradition presented to an Australian court, but the matter has all the twists and turns to evolve into a messy legal bun fight.

Six young Australians await the outcome with trepidation.  They are adamant that they did nothing wrong and that this death had nothing to do with them.   The police there were perfectly satisfied at the time, and now the matter is fast turning into an international incident which is involving governments.

If nothing else, it illustrates the danger we face when we visit exotic destinations and place ourselves within the laws of other legal jurisdictions.    Rules of evidence and summary justice may not be the same as those that exist in Australia - and once we cross that national border they are the laws under which we will live.

In the case of the " Peru Six ", this outcome awaits resolution.   If the fickle finger of fate turns it back on them, their lives may be irretrievable ruined  - and their freedom placed in jeopardy.

A point to ponder whenever we consider overseas travel !

Thursday 4 July 2013

" Button Battery " danger !

In recent decades, we have seen a huge expansion in the use of " Button Batteries " to power a range of devices.   They are the batteries that power our digital watches and hearing aids, but the rush to reduce the size of control functions such as remote controls are seeing these tiny batteries replacing their older and bigger cousins at a steady rate.

Many people regard them as harmless, but they have the capacity to kill and they are particularly deadly in the hands - and mouths - of young children.  On average, four children a week are rushed to hospital to deal with a battery that they have swallowed.

This past week, a four year old girl died on the Gold Coast from just such an incident.   The biggest danger comes when parents are unaware of what has happened.  Children too small to explain what has happened will lose the critical opportunity to get treatment and when one of these batteries is within a child's body the natural saliva juices will setup a chemical reaction in just an hour or two. Burning of tissue will quickly become life threatening.

Unfortunately, this danger is not widely known.  Because the batteries are so small, many people see them as harmless and conclude that - if swallowed - they would exit the body through natural functions.   Ingesting a battery should be considered  an incident of similar severity to swallowing deadly poison !

The medical people are warning parents to be very careful in disposing of even " used "  batteries, but innovative industries are presenting new problems.   Novelty items are appearing on the market - and these will likely include musical birthday cards which are powered by a tiny button battery.    Watch out for " singing Christmas cards " when that season comes around  this year.

The danger will come if such novelty cards are left around as playthings - once the novelty has worn off.   The tiny battery is usually glued somewhere on the card and it can easily be dislodged - and swallowed.

The world of innovation finds new ways to bring delight - but unfortunately it also has a " dark side " !

Wednesday 3 July 2013

Spectre of the " N-40 " !

And so the defection of senior ministers from Labor's ranks rolls on.   Simon Crean is the latest to announce that he will not contest his seat at the coming election.

Not only did this confront Kevin Rudd with the task of selecting a cabinet from the dregs remaining.   It poses the question of how to recruit suitable candidates to fill the vacancies - and time is running out to organise that task in a manner that will satisfy Labor voters.

Hanging over candidate selection is the spectre of " Federal Intervention "  - and that means bringing in the emergency use of the notorious " N-40 " rule to impose a head office candidate parachuted into a seat without reference to the local branch members.

This opens up a plethora of old wounds.  In the past, selecting candidates was very much a " deal " between the various factions to balance their numbers, and accommodate the decision making power of the party's trade union base.  The unions have lost vital representation in this rash of resignations and they are sure to use their muscle to see this restored.

Rudd is faced with a major headache.   He has dumped Julia Gillard's September 14 election date - but has yet to announce the timing of the new poll.   If he delays it to the point that parliament resumes, the public will see the paucity of the team now holding ministerial positions.    There will be a tendency for Rudd to over ride the decision making process to avoid blunders - and that will not suit the " kinder, gentler " image of the consultative prime minister that he is trying to present to the voters.

Expect a huge backlash from the rank and file branch members if they are deprived of selecting candidates.   Labor will use the N-40 at it's peril.   This was the factor that saw branch numbers dwindle - and yet the time factor for branches to deliberate and select candidates is way out of kilter with the urgency of getting the matter settled.

It all revolves around the necessity of continuing the " Kevin Superstar " myth and using his drawing power to consolidate the upward kick in the polls.   That brings in the necessity of delivering a " quick election " - before reality sets in.

Time is not on the side of the task ahead !

Tuesday 2 July 2013

Tax Refund time !

The 2013/14 financial year has started - and now taxpayers are facing the task of preparing their tax returns for the year that has just ended.   The commercial world will be holding it's breath - waiting to see what will be the fate of all those refund cheques which will flow out of the tax office.

The retail industry has been barely hanging on to life, under pressure from Internet traders and a public reluctant to spend money.  In past years, tax refunds have been the source of spending sprees - but this year may not follow that trend.

Firstly, there is the uncertainty of this being an election year.   What happens in Australia may depend on which side of politics gains the treasury benches - and the actual date we will go to the polls has yet to be decided.

The entire world financial situation is far from clear.  The European Union is wracked with debt and massive unemployment.  China seems to be winding back to a more modest growth rate and the world's biggest economy - the United States - has descended into a political standoff.    There are few indicators that better times are about to happen.

There is even a doubt that many tax returns will result in a refund cheque.   A year ago the Australian government moved the eligibility parameters on health insurance and many contributors continued to claim a rebate for which they were not entitled.   As a result, some families may receive a $ 1,700 tax bill instead of a refund cheque.

In uncertain times, prudent people reduce debt and where refund cheques are involved - this may be the year that they clear the amount owing on credit cards - and many will use a lump sum refund to reduce their home mortgage.   Those able to make a one-off $ 2,000 payment on a $ 300,000 mortgage will not only save $ 7,000 in interest, but also shorten the mortgage term - and that is a very attractive proposition.

Most decisions will be made when that refund cheque arrives in the mail box. If it's arrival coincides with doom and gloom from the news commentators it is likely to be either squirrelled away or used to reduce debt, but if we are assured that dark financial clouds have rolled away and the future looks certain - then the retail industry may get the bonanza they are hoping for.

Tax refund time will be either " make or break " for many in the business world this year !

Monday 1 July 2013

A deadly " Public Mischief " !

The purposefully misnamed " Australian Vaccination Network " ( AVN ) has been a thorn in the side of the medical profession as it tries to persuade parents to refuse vaccinating their children against childhood diseases.  Disease control requires a high level of acceptance to confer immunity and vaccination levels in Australia have dropped to a point where this risk level has risen.

AVN claims that vaccinations are a pathway for other deadly diseases. While it is true that any medical procedure has a slight risk factor, the balance is overwhelmingly in favour of the benefits that vaccination confer.  Unfortunately, some parents confuse the rantings of this splinter group as a legitimate medical response - and put their children at risk by refusing the needle.

Now AVN have set their sights on Tetanus vaccinations.   They claim on their Facebook web page that " putting Tea Tree oil on the wound " prevents Tetanus and " if the wound bleeds you can not catch the disease ".  It also suggests that those lacking the risk factors of " age, diabetes and smoking " are unlikely to catch Tetanus.

Posts from those that disagree - including medical people - are removed and no alternative views are allowed.  There is a risk that some people will think that this is official medical knowledge - and Tetanus is an agonising disease that is fatal in some cases.

It raises the question of " free speech " as a right, balanced against the obligations that go with it.   Someone famously stated many years ago that free speech did not extend to shouting " fire " inside a crowded theatre.    While publishing a theory under ones own name may be acceptable because no qualification is claimed, to publish under an official sounding title is an entirely different matter,

Claiming medical knowledge that is unproven could be considered a "Public Mischief ".    If it causes someone to defer medical intervention that leads to a loss of life that must attract a degree of liability under the law.   Surely, if this is done knowingly - it could come under the definition of " manslaughter " !

Perhaps what is needed  is a law change.   It should be made mandatory for anyone giving advice on a medical matter to clearly identify what - if any - qualifications they hold on that subject.

As things stand, there is no present requirement to do so and many such claims are carefully camouflaged behind what seems to be an official sounding title of substance.

Time to drag the exponents of " quackery "   -  kicking and screaming - into the public domain !