Thursday 30 April 2015

A Cheap Shot !

What can only be called a "cheap shot "was aired on a video by actor and director Brendan Cowell when he demanded Prime Minister Tony Abbott "show some balls " and " Get over to Indonesia and
bring these two boys home " !

The Australian media has concentrated it's attention on Andrew Chan and Myuran Sukumaran but Indonesia planned to execute nine prisoners - and at the last minute issued a stay of execution on a woman from the Philippines because they needed her to give evidence in a forthcoming human trafficking case.

The eight executed came from Australia, Brazil, Nigeria and Indonesia and there were calls for clemency from most world countries - and personal appeals from Ban Ki-Moon, head of the United Nations, The Pope, the Dalai Lama and even petitions from Indonesian citizens, but all of these were ignored by Indonesian president Joko Widodo.

The fact remains that Indonesia is a sovereign country and it's laws call for the death penalty for drug crimes.  Like most decisions that affect foreign relations, this refusal to grant clemency has political undertones.   Widodo beat off a strong army general to win office and feels a need to appear to be a "tough guy ",   Early in his presidency he painted himself into a corner when he promised executions for drug prisoners - and now he had no option than to deliver on his promise.

Indonesia is feeling the heat from the rest of the world and it is quite possible that we may see a law change to drop the death penalty - after enough passage of time to allow feelings to subside.  The big danger is if stirrers demand retribution against our close neighbour and this leads to actions that degrade trade and harm the close cooperation in defence and security which is mutually beneficial.

Our relationship with Indonesia has come a long way since "Bung " Sukarno was president and he openly claimed that an Indonesian invasion of Australia was inevitable.  Tensions within Islam are roiling on a world wide basis and Indonesia is predominantly Muslim, so there have been undercurrents and events such as the Bali bombings,  but basically most Indonesians are happy to practice their religion in peace.   The opportunities for trade and commerce are enormous.

Executions have in the past caused friction and it is worth remembering that tension between Australia and Singapore were once raised over the fate of an Australian who fell foul of a law in that island state.  While we do not agree with capital punishment, we certainly agree with the right of individual countries to apply the laws that their courts uphold.  It is the responsibility of visitors to abide by whatever laws are in force.  Our relationship with Singapore could not now be more cordial.

We are a country that prides itself on laws that protect free speech.  Brendan Cowell has the right to make ridiculous statements demanding that our prime minister either take an army division and storm the Indonesian beaches to free two prisoners - or grovel to Widodo and plead for their release.  Unfortunately, in this age of Facebook and Twitter those who lead countries are subjected to the whims of citizens airing their personal grievances.   Tony Abbott was recently criticised when the media posted a photo of him enjoying a glass of beer.  Of course, had he knocked it back and declared he was a teetotaller - the rest of Australia would have branded him a "Wowser " !   The New Zealand prime minister received similar jibes when he playfully tugged the ponytail of his favourite waitress.  Such is life in this twenty-first century.

The families of the deceased must be allowed to mourn their loss in peace.  Most people hoped for a happier ending, but it was not to be. Perhaps something will be learned from this experience that will auger well for the future.   Now is the time to close the book on this incident !

Wednesday 29 April 2015

The " Public Tenant " Problem !

It is a sad fact of life that some New South Wales Housing Commission tenants are so destructive that when they finally vacate the dwelling is simply "unliveable "  without major repairs, and this is costing the state over twelve million dollars a year.

The new Community Services Minister is thinking of imposing a bond as an incentive for good behaviour.   It works well in the private rental sector and tenants know that if they do damage the repair of that damage will come from their bond. Unfortunately, there is a wide gap between public and private rental market options.

There is a long waiting list for public housing and yet in many cases "emergency housing " jumps the queue and takes preference.   It is unlikely that many public housing tenants will have the savings available to pay a substantial bond and so it is proposed that their early rental be increased to allow a bond to accumulate.

That has distinct possibilities.  In fact those nearing the top of the list could be expected to start building a bond deposit by paying into a bond fund in anticipation of getting housed.  Public housing rents are pegged to a proportion of earnings, hence this comes into conflict with a rent increase to serve towards a bond.    That is not a problem in the private sector because there are more prospective tenants than available housing and those lacking the money for a bond are automatically excluded.

This idea of a housing bond will certainly come into conflict with left wing thinking on the obligation of the state to house low income earners, but  "public housing "does come with principles.  There is an obligation that tenants will take care of public property and the present arrangement lets them walk away without penalty even if they leave their rental home a total wreck.   As the private rental market illustrates, having a substantial sum of bond money held in trust is a powerful incentive to be careful to avoid damage.

Perhaps the greatest opportunity to prevent damage would be to install a regular inspection regime, coupled with a shorter and sharper process of evicting those breaking the tenancy rules.   The present  system is slow and tedious and open to endless appeals.   There is no legitimate reason that public housing should be lax in enforcing the rules that apply - and in many cases a "bad tenant " imposes an intolerable threat to all those living nearby.

Most reasonable people react in compliance with firm boundaries.   Gaining possession of a housing commission home is itself a reward to be cherished and the vast majority are good tenants.  It is a small minority that cause the most trouble - and this can have many causes.   In some cases a marital breakup can cause an alcohol or drug problem and in others unwanted family members force entry and overload the facilities.   Out of control children reaching adulthood and forming gangs can terrorise a neighbourhood - and a surplus of cars seeking parking space is often a point of friction.

Installing a bond regime is a good idea, but an even better solution is to tighten the process of withdrawing public housing from those who flout the rules.   The fear of a very quick eviction would go a long way to installing good order in the public housing sector.

Tuesday 28 April 2015

Changing Tastes !

It was not that long ago when the vast majority of cars on Australian roads were either Holdens or Fords.  Then came a wave of innovative Japanese cars and slowly Toyota rose to world dominance - and now both General Motors and Ford are about to cease Australian car manufacturing.

It seems that the word "Holden "is fading from the Australian lexicon and being replaced by "Chevrolet ".   It is not helping that General Motors seems to be going through a rough patch with assembly quality and last year it shared the dubious honour with Jeep in issuing a massive fourteen recalls to fix problems.

Now another recall is in the works.  It seems that the popular Colorado utes and family SUV's have a faulty cable assembly that may come into contact with the battery housing and start a fire.  The company will recall twenty-six thousand vehicles to dealer workshops to have this fault fixed at no cost to the owner, but safety recalls do little to build brand confidence in public minds.

Sadly, what was billed "the car of the future " also seems to be a non starter in Australia.  General Motors has decided not to proceed with a right hand drive version of this innovative electric vehicle and it will not be offered for sale in this country.   It is probable that the sharp fall in oil prices has a lot to do with that decision.  The Volt was supposed to make the move from hybrid petrol/electric combinations to pure electric power and become a volume seller.   That now seems to be a fading dream.

The decisions by Holden and Ford to quit manufacturing in Australia were greeted with shock and dismay at the job losses, but  the car industry is fast moving to robotics and siting factories is now a matter of extracting concessions from countries eager to host operations.   The last few years has seen the Australian taxpayer coughing up an ever increasing subsidy on every car rolling off the assembly line to keep the factory doors open.  Now that local manufacturing no longer needs tariff protection, the Australian motoring public will enter a new era.

Car manufacturing is steadily condensing into an ever decreasing number of manufacturers.  Mergers and acquisitions bring economy of scale and each new year model breaks new ground in the technology race.  We seem to be heading towards the era of the driverless car - and what is amazing is just how much value is packed into vehicles at the lower end of the market in comparison to the selling price.

The biggest problem for those tasked with car design - is the fickle nature of public taste.  The Australian public turned their back on the big family saloon and wagon models of rear wheel drive touring cars like the Commodore and the Falcon.   Firstly, they favoured compacts - and then tastes changed to massive SUV's.   Judging what will find favour twelve months from now seems to be in the realm of crystal ball readers.

Along with design change comes a vast realignment in the vehicle servicing industry.  The service interval gets ever longer, but the modern car has moved beyond the ability of independent car mechanics.  There is a need for factory equipped dealer workshops that allow computer to computer alignment to monitor and decide servicing, and the algorithms necessary will be tightly restricted by the car manufacturers.

The one certain fact is that the cars offered for sale in Australia will continue to meet world standards - and those standards will increase exponentially.    The car we are driving a decade from now will be almost unrecognisable in comparison to what we drive today.


Monday 27 April 2015

Land of the "Tooth Fairy " !

Trying to figure out the inconsistencies of our Pharmaceutical Benefits Scheme  ( PBS )  which can see a two dollar packet of Panadol cost the taxpayers about fifty dollars is now the task of Federal Health Minister Sussan Ley.   Following through on that Panadol cost trail takes some interesting twists and turns.

A packet of Panadol is freely available without a script at Coles and Woolworths for two dollars, but once it is prescribed on a PBS script the cost increases to $ 6.70 for pensioners and concession card holders.   So - why would a pensioner willingly pay $6.70 for something that can be had for the lesser amount of two dollars ?

Enter that enchanted kingdom known as the "PBS Safety Net ".    Once a pensioner - and that includes couples and even families - have spent $ 366 in any one calendar year on sixty PBS scripts their entire PBS medication becomes free.   That is a big incentive and most pensioners carefully count their scripts as they work towards the magic six-o  !

Another cost addition occurs when the chemist applies a "dispensing fee "to that packet of Panadol.  The PBS pays $ 6.70 and the Panadol is taken off the shelf and has a dispensing instruction added, which includes any instructions that doctor may have required on frequency or the need to combine with food.   That two dollar pack of Panadol has now increased to $ 12.80.

But of course the cost of getting that script must come into calculation somewhere. Most likely the pensioner is bulk billed, hence the visit to the doctor is without charge, but the taxpayer foots the bill and pays the doctor $ 37.05 for that bulk billed visit.   Put that together with the $ 6.70 dispensing fee and the $ 6.10 pensioner charge and you are looking at $ 49.85 for a packet of Panadol !

The problem is that a big number of low cost medications cheaply available at supermarkets are also included in PBS availability and these include dandruff treatment and antacids.   It might be cheaper to remove them from the listing and simply award all pensioners a few extra dollars each fortnight to cover this cost.  The main purpose of the PBS was to make high cost medication within reach of ordinary people and it seems that trying to keep costs under control is preventing the listing of new essentials.  Too much money is being expended on items that become outrageously expensive when they are included in PBS listing.

One idea being considered is to unshackle chemists from the rigidity of that $ 6.70 dispensing fee - and allow them to compete with other chemists for custom.   Dispensing fees seem a throwback to a distant age, when many chemists actually put together a mix of ingredients to create a product that their training told them would help with the ailment troubling their customer.   It seems a bit rich to charge $ 6.70 to take a packet of Panadol off the shelf and stick on a label - with much the same instruction as on the original packing.

No doubt any change will be bitterly opposed.  The number of chemist shops in Australia is a fair testament that they are a rewarding profession - and in many shopping centres their numbers are similar to coffee shops.   Forcing them to be more competitive will reduce the numbers and create the volume climate for lower prices.  The grocery duopoly have long hungered to be allowed to include a prescription service - and that is an option that remains open to the government.

Sussan Ley has the job of trying to juggle the conflicting interests of the pharmaceutical industry, chemists, doctors and the long suffering taxpayer to put together a PBS that delivers within a workable cost structure.  Chemists are an important filter in dispensing advice that reduces the numbers visiting both doctors and hospital emergency departments.  That safety net is an important initiative to shield families from the cost of catastrophic illnesses, but sanity must prevail in padding the entry numbers by the inclusion of medication already available at low cost.

We know something is wrong when it becomes evident that costs could be reduced by actually giving away free items that artificially bloat the PBS impost on the taxpayer.

Sunday 26 April 2015

Charities !

It seems to be a fact of life that once you donate to a charity that allows amounts over two dollars to be a claim against income tax your letterbox  will receive an endless spate of appeals from some of the 600,000 charities registered in this country.  It is suspected that some charities raise money by charging to hand over their donor list as a valuable trading asset.

In recent times, it has become evident that marketing gurus have been enlisted to plan the approach to lift the donation rate.  There are ever present heart tugging scenarios begging for relief, but many take a new slant by enclosing gifts to try an put the receiver under an obligation.  Peel off name and address stickers are common, but the ante has been upped and now some approaches contain both greeting cards and their envelopes - and handsome upper range ball point pens.

It seems that the Australian tax office is now having a hard look at a tax break designed to assist charities gain quality staff not attracted by salary levels way below those offered in the private sector. A lower pay level is regarded as a salary sacrifice and delivers tax relief set at either $ 17,000 or $ 30,000, depending on the rating of the charity and the salary level involved.

There are some very good charities doing magnificent work to enhance medical research, alleviate poverty and assist many worthy causes, but there are also a few that seem more interested in burnishing their image socially - and providing flash cars for their upper echelon.  It is hard to judge a charity by it's name and it's claims, and perhaps now would be a good time to introduce a measure that would be a common yardstick for public evaluation.

All charities are required to have an annual audit and this provides an ideal opportunity to evaluate precisely what amount of money was raised in the preceding year - and how that money mix was distributed.   The public has a right to know exactly how many cents in each dollar raised went to the cause intended - and what percentage of that charity dollar was absorbed by salaries, collection costs - and the varied items that appear on a balance sheet under listed "expenses "!

That could quickly become the "gold standard "in evaluating a charity and making a donation decision.  It should be mandatory for all and every charity soliciting donations to clearly feature a logo stating the audited percentage of dollars collected that actually reached the stated purpose of the charity.

Not only would this serve to identify charities that perform well below expectations, it would quickly become an incentive to cut waste and improve the appeal in the public eye by an easily identified level of standard achieved.  It could be expected that charities with a high level reaching the target would find this a valuable tool in attracting donations and they would prominently make this achievement conspicuous on their literature.

The important thing would be to legislate to require all charities to adopt this measure of accountability - and set a standard of how, where and at what size it must appear on all their print literature and other forms of advertising.

The search for the charity dollar is ever increasing.  Setting an accountability standard is a sure way of eliminating those charities that serve no useful purpose - and help the charities which keep their costs under control to attract public support.

Saturday 25 April 2015

Little Fish Slip the Net !

That High Court finding against ICAC must be utterly confusing to those not fully trained in the law.  Five directors of a coal mining company were previously declared corrupt when they concealed Eddie O'Beid's involvement in the granting of as coal tenement.   This week ICAC consented to a court order declaring that corrupt findings against them are invalid.   The way is open for them to claim reimbursement for legal expenses.

The interpretation seems to be that "only people who collude with public officials to commit corrupt acts can be found to be corrupt ".   To most people, that is precisely what the original ICAC finding seemed to describe.   It appears that this changes nothing in relation to either Eddie O'Beid and Ian McDonald because they were public officials at that time.

It seems likely that much of the prosecution against those who plundered the public purse in the coal mining scandals are about to get a "get out of gaol free "card and not only walk away, but put out their hand for legal costs - and that is a financial disaster for this state.

The High Court stepped in to right what it saw as a malicious and personal attack on high profile public prosecutor Margaret Cunneen.   ICAC was relentless in pressing charges that Cunneen acted corruptly by advising her son's girlfriend to claim to be suffering chest pains to avoid a breath test after a car accident.   This investigation was launched after an anonymous complaint was made to ICAC - and that complainant has not been revealed.

Cunneen claims she gave no such advice and when her son's girlfriend was taken by ambulance to hospital a blood test was automatic procedure - and revealed a zero alcohol reading.  That should have been the end of the matter, but ICAC threw it's full weight behind a home raid and the seizure of mobile phones from not only Cunneen, but also the paramedics who attended the accident scene. It quickly became obvious that this relentless pursuit was simply a settling of old scores.

The state government is being implored to quickly pass legislation to retrieve the legal situation and validate ICAC's action by law to overcome the finding of the High Court.   It is evident that ICAC has learned nothing - and is still intent of continuing the Cunneeen inquisition.  To many people, this is nothing more than a clash of ego's by those at the top of the ICAC pyramid.  It is a claim to exercise the amazing power in their hands to go after whatever and whoever they choose - and not be contained by this country's highest judicial court.

Looking at the Cunneen case and using common sense - it is hard to see how a claim of corruption can be substantiated.  As a licensed legal person she would be aware that a blood test is mandatory for all who attend hospital emergency departments.   It is quite possible that if she recognised a police officer attending such an accident who had been the subject of interrogation by her and who would have malice towards her as a prosecutor it would have been wise to have blood alcohol tests carried out by an independent source - but Cunneen denies giving such advice and absolutely no verification of the ICAC claim has been forthcoming.  ICAC became relentless purely on the basis of a complaint from a source that has been carefully guarded.

The state government  would do well to ponder the implications that the High Court has raised.  It is disturbing that this country's highest judicial body has seen fit to be critical of an agency with what seems absolute power to destroy both the reputation and liberty of those that earn it's ire.  It is a clear warning that all is not well within ICAC's decision making process.  To restore it's power to be the sole arbiter of all prosecutions is to foist a star chamber mentality on the citizens of this state.

A long held wisdom applies.  It is better that many guilty persons go free than a single innocent serve a term of imprisonment for a crime they did not commit !




Friday 24 April 2015

Widening the Tax Net !

It is becoming painfully obvious that the Australian public are losing patience with Prime Minister Tony Abbott and Treasurer Joe Hockey.   Their attempts to rejuvenate the Australian economy are not producing results and it no longer suffices to blame opposition from Labor and the Greens for the lack of progress.  The policies suggested have simply not been good enough or presented in a manner which the public will accept.

One of the anomalies that most people do not understand are the GST exemptions that apply to some services.  When they call a local cab company they are charged the GST, but when they choose to call Uber another citizen arrives in his or her private car and delivers them to their destination - without charging the GST.

When they take a holiday, either they book in to a resort and pay the GST attached to their bill, or they book a room in someone's private home via Airnb - and dodge that ten percent surcharge.  Even more surprisingly, when they watch a movie on their television via Netflix it is GST free, but if they hired the same movie from their local video store they will get whacked the surcharge.

If any service is delivered in Australia it would be reasonable to expect that the GST tax would apply equally - to deliver a level playing field.  If it takes a law change to achieve that result, so be it !

We do not have to look far to see how someone else fixed a similar problem.   The New Zealand economy is going gangbusters and they have moved the impetus of their tax regime onto collecting tax via their GST rather than through income or company tax.   The GST tax net was widened to include food and services, and the only exemptions are housing rents, donations to charities, gold bullion and financial services - and their tax rate was increased from ten to fifteen percent.

Lowering company tax and individual income tax and collecting tax by a higher and broadened GST improved the investing climate and fostered expansion of industries, improving the jobs market.  This greatly improved tax collection enabled pensioners and the low wage people to receive adequate compensation , hence the benefits are spread widely.

New Zealand's prime minister, John Kay is popular and held in high esteem.  His approach to making changes to his country's economy was to speak candidly to the people, explain the dangers it was facing and present a fully costed plan for public approval.   He allowed plenty of time for this to be closely examined - and there were many grumbles and some opposition - but the vast majority gave it approval and now the Kiwi dollar is fast reaching parity with it's Australian dollar exchange rate.

Few would disagree that the Australian economy has a problem of income failing to match outgoing.  It will take bold measures to apply the necessary correction and so far the steps taken are seen as "dithering " !   They lack credibility and the steps taken by way of explanation have lacked conviction.  Even the government backbench has seemed lacking in uniform support for some of the measures proposed.

It may be necessary to take the voting public into the government's confidence and formulate a visionary plan that would need public support to succeed.   Such a plan would need credibility and be fully and accurately costed, and should the opposition and the Greens continue to play politics and block passage through both houses it would become necessary to dissolve the parliament and take the issue to the people.

New Zealand has solved it's problems by boldness and common sense.  That same formula is badly needed to fix the Australian economy !

Thursday 23 April 2015

Storm's Financial Aftermath !

For three days the east coast of New South Wales experienced cyclonic wind and rain.  Houses were washed away by flooded rivers and the storm surge did massive coastal damage.  Sandy beaches moved inland and invaded shopping centres and people's homes - and the number of cars written off because they were inundated are yet to be counted.   The death toll stands at seven - and may rise further.

This is regarded as a "ten year "storm and while many will blame it's intensity on global warming the history books record a litany of similar events.  The problem is that as our numbers increase and the density of living on this inviting coastal fringe fills previously vacant land, the damage bill increases exponentially.   Insurance assessors will be months totally the cost and it will probably top billions of dollars.

Insurance will cover only part of the bill. Many private homes destroyed or damaged will be uninsured and already council workers are trying to restore foreshores for ANZAC day events. It is inevitable that where flood water invaded houses even those  covered by insurance will lose personal items of great sentimental value.  Over a thousand passengers on a cruise ship will have unhappy memories of two nights spent at the height of the storm off Sydney, riding very rough seas when the pilot was unable to board to bring the ship into port.

This storm event is destined to find it's way into ever higher bills spread across a wide range of charges.  Each year councils petition for rate increases well above inflation and this cleanup will add to deficits.  It is inevitable that the damage costs to homes and cars will be factored into premium rates that will apply to the next policy renewals.

There are lessons to be learned from this weeks storm.  An incredible amount of damage occurred when dangerous trees fell on homes or crushed cars.  Perhaps it is time to reassess this danger and actively remove those that pose the greatest threat.  In many cases, giant trees in suburbia are simply what existed before homes were built on vacant land and are totally unsuitable for an urban landscape.   We could enhance the safety factor by removing them, and planting replacements to preserve the greenery without the danger.

Achieving that is easier said than done.  It would best be achieved by consultation and agreement with the home owner but where a grave danger exists councils certainly have the power to order the removal of such a tree.    It could also be a factor taken into account when deciding the premium for insurance cover.   It would not be unreasonable for the insurer to require the removal of a dangerous tree as a condition of cover.

Perhaps the greatest safety opportunity occurs when new housing estates are planned.  That would be an ideal time to stipulate precisely what trees were allowed and we have the example of Canberra as a guide.   The planning of the national capital was in the hands of the National Capital Development Commission  ( NCDC ) and their planning extended to the house type and size allocated to each block - and further refined completion to matters such as where a clothes line could be located or what type of letter box would be installed.   NCDC decisions also covered the location and type of trees allowed - and as a consequence Canberra has an almost complete absence of  dangerous trees damaging houses in wind storms.

It is quite certain that within the next decade their will be further storm events and one may even exceed this weeks ferocity.  At least a little forward planning now could ensure a better outcome where homes are damaged by falling trees.

Wednesday 22 April 2015

Poor Loser !

When the Independent Commission against Corruption ( ICAC ) was setup in 1988 by Nick Greiner it's brief was perfectly clear.  It was to be a preventive mechanism against corruption  in the vast business of government and it had wide ranging powers to carry out that role.  It certainly failed in that duty when astronomical profits were made by the corrupt granting of coal mining licenses and  leases were renewed without competitive tendering processes - and ICAC became involved long after the horses had bolted - and was tasked with locking the stable door.

The fact that it received a severe rebuke from the High Court when it degenerated into character assassination by going after a public figure in the "Cunneen investigation " should have been a warning to change tack and review it's scope of operations.  Instead, it delivered an outburst of sheer arrogance when it demanded that the government "change the law " to validate it's actions in the Cunneen case - and make this retrospective !

ICAC had the gall to tell the highest court in Australia that it got it's findings wrong.  That prompted  Supreme Court judge Justice David Levine to warn the government to avoid a "knee jerk "reaction  which could see ICAC establish itself as a "second police force ".

The world has seen many instances where government agencies have slipped the leash and become agencies of civilian terror.  At one stage the vaunted American FBI became subject to the whims of J Edgar Hoover and it's actions ranged far from it's constitution.  During the second world war, the Gestapo imposed a reign of terror in the occupied countries of Europe.  Curbing the lust for power by agencies under it's control should be the main focus of government.

It is clear that ICAC is not accepting the ruling of the Australian High Court - and appropriate action is needed.  It would be appropriate to reform this agency by installing new people - with new attitudes - to clear away the directional thinking that has led to this confrontation between ICAC and the High Court.   It is simply a matter of reminding those who now control the levers of power at ICAC that they are servants of the government and that the government governs under the direction of the highest court in the land.

Probably, the wisest course would be to abolish ICAC in it's entirety - and start again.  There are probably many good people working for that organization and there is no reason why those with the right attitude could not be reemployed.  It is the core thinking that seems to have delusions of what ICAC intends to become that needs change and that can best be served by a wholesale reformation of the entire body politic.   Once such a taint enters, it is hard to eradicate by any other means.

It is also obvious that all is not well within the senior ranks of this state's police force.  It seems that actions have been taken contrary to the law to blacken character and manipulate promotional prospects and as a result police morale has suffered.   It should be of major concern that both the effective crime fighting identities in this state are far from squeaky clean when it comes to the direction in which they are heading - and their control functions.

The government needs to flex it's muscles and make it perfectly clear who is running this show - and that deviating from official policy - has consequences !

Tuesday 21 April 2015

A Job ? - Or a Hobby ?

A long time ago serving on a local council was a honorary duty often undertaken by a small business owner.  It was helpful if those standing for election were well known in the community and getting elected surely enhanced their social standing.  In many cases, it served as a springboard for a later run at state or Federal parliament. "Councillor "was an unpaid civic duty !

As villages morphed into towns and towns grew to become cities the responsibilities of both mayors and councillor's took on a much greater workload and with that came reimbursement by way of salary and expenses and the provision of cars and communication equipment.  Accepting oversight of a budget that ran to millions of dollars became a full time job that needed professional skills - and an appropriate pay level.

We have now reached the stage where seven state members of parliament are also holding down jobs as either councillors or mayors as well as serving as state MP's - and in some cases holding ministerial rank.  It is highly likely that this clash of responsibilities will see them miss up to forty days of parliamentary sittings.

The rules were recently amended to try and resolve this problem.  A person serving on a council may hold that position for the remainder of that term of local government, but can not stand for reelection at the following election.  That was intended to protect councils from the need to hold a costly by-election should the rules force a sitting council member to resign upon entering parliament.  As things stand, the next round of local government elections will be held in September, 2016.

The base salary for a New South Wales state member of parliament  is $ 149,451 plus electoral allowances.   The stipend for one mayor also sitting in parliament runs to $ 82,000.   It is hard to see how two very demanding jobs can be managed at the same time and at the standard expected by both ratepayers and taxpayers.   While allowing councils to avoid costly by-elections it leaves either taxpayers or ratepayers unrepresented, depending on which job primarily occupies the time of their elected representative.

This raises the vexing question of how to disassociate items under discussion from the personal interests of those elected to make those decisions.  The forced amalgamation of councils will certainly be a forthcoming issue in this state and it would seem less than impartial to have that vote in the hands of people who may also be serving members of a council so involved.  Likewise, if the issue coming to a vote involves industrial relations, surely a sitting member who is also a card carrying member of a trade union  should be excluded on conflict of interest grounds ?

The rules of fair play require any conflict of interest items that arise to be declared at both council and parliamentary level and a voluntary withdrawal from a vote undertaken.  Members of parliament are required to lodge a pecuniary listing of financial interests and shares held by them and their families upon election.  Strict rules apply to financial donations to both individuals and political parties.   The sharing of both council and parliamentary interests makes keeping this balance difficult.

It is generally conceded that the workload of those elevated to the ministry is far heavier than that of a backbencher.   Perhaps a ruling that those holding both a council and a parliamentary seat be excluded from the ministry until the council term expires would be a satisfactory way of resolving this problem.   Should it then be expedient to elevate a newly elected member to cabinet the option of an immediate resignation from council would then be imperative.

There is an expectation that both levels of government require the full time attention of those elevated to office !

Monday 20 April 2015

Life's Harsh Realities !

When we hear in the media that someone has been sentenced to a prison term for a crime we rarely think beyond the appropriateness of the sentence.   There may be kids involved who are in danger of losing contact with Mum or Dad.  Social workers stress the importance of maintaining that bond to both rehabilitate the prisoner on release and to maintain family values that guide a child's upbringing.

In many cases the children of a prisoner are taken into care by grandparents and in some cases they are too frail or too poor to undertake the travel long distances to where the prison is located.  There is also the problem of the remaining parent being in bitter dispute with a former partner - and refusing to take children for such a visit.

For the past twenty-six years a small volunteer organization has existed to fill this gap.  It takes children on prison visits and stays with them until it is time to take them home and last year it accommodated 123 children on 63 visits.  Over those years it has been sustained by a small annual government grant to  allow frugal reimbursement of fuel costs to keep the service running.  Sadly, this year that grant has become the victim of fiscal belt tightening - and it has been refused.

The probable outcome is that some volunteers will be forced to withdraw from providing help and travel to distant prisons will be the first to be cut.  One of those instances where a few paltry dollars can deliver a dividend that would be totally impossible if undertaken as a government service.

The worst possible news that can befall any patient is the diagnosis that they are suffering a terminal illness.   In many cases there is medication outside the scope of the PBS that may ease the onset of the disease and sometimes buy a few more months of life - but it is also usually very expensive. Many people apply to dip into their superannuation to fund this treatment, but strict rules apply.

At least two specialists must agree that the patient has less than twelve months to live.  The rigidity of this ruling is galling.  Specialists are being put in an impossible position when they know that the terminality is final - but that the end may linger over a period of a year or so. The bureaucratic demand for a precise time of death is both inhumane - and impossible to accurately predict.

It also fails the very purpose for which superannuation was intended.   That was the expectation that the final years of life would be comfortable and adequately funded.  When an illness intervenes to shorten the life expectancy there seems an inconsistency that this money can not be used and must remain in a superannuation pot until it becomes part of that persons estate - and is distributed according to the will of the deceased.

It seems strange that superannuation rules are under review to allow first home buyers to access part of their savings to accrue the deposit needed to purchase a home and yet the terminally ill will be denied access until the final months of their illness, unless they can find a specialist prepared to knowingly sign off on an untruth.

Such is the outcome when the need for a bureaucratic framework clashes with the humanities that underscore each and every case that awaits decision.

Sunday 19 April 2015

Death - by Sleep !

The crash of a Germanwings airliner that killed a hundred and fifty people in the French Alps threw the spotlight on the medical regimen imposed on pilots.  They are subjected to regular medical examinations and as they grow older these include psychological examinations.  The testing authorities go to great lengths to ensure that the person at the controls of an airplane is fit to carry out that task.

Compare that to the scene on the roads of New South Wales.  On any busy highway we are seeing a constant stream of thousands of cars an hour, each with a driver behind the wheel who simply filled out an application form prior to receiving their driving license and who ticked boxes to disclose any relevant medical conditions.   Gaining a car driving license does not involve a medical examination.  All that is then required is the satisfactory completion of a physical driving test conducted by an examiner.

Both the initial application for a driving license and subsequent renewals require an answer to boxes that enquire if that person suffers from Epilepsy or Diabetes and there is a "catch all "question requiring disclosure of "any disorder that could affect their ability to drive safely "-  but there is no question to specifically divulge the common disorder known as "Sleep  Apnoea ."

Sleep Apnoea is a condition in which the sufferer is prone to falling asleep involuntarily - and that can happen behind the wheel of a car.  In cases where a crash kills other innocent people the prosecution is hamstrung by a High Court ruling that prevents charges being laid.   That ruling forbids charges for "involuntary acts such as sleep "and is known as the "Jiminez defence ", after the case that gave rise to the ruling.

There have been many cases where Sleep Apnoea has been the cause and this raises the question of how seriously are we treating the issue of car driving licenses  ?   We are subjecting the over eighty-fives to both a medical examination and a further driving test and drivers of heavy transport receive a much more rigorous set of rules, but the vast array of people driving cars simply pass through the system for their entire early years on the basis of what they choose to admit on a paper questionaire.

Getting a license to fly a private plane is a long process which involves a lot of tuition and testing of skills - and consequently it is highly valued by the holder.  The skill factor of a car driver on today's congested roads and higher speed highways is not reflected in the licensing procedure.  The average newly licensed driver has minimum skills and is expected to gain experience by the passage of time.To a degree, this is graded by use of the red and then green "P " plates that are progressively displayed.

A case could be made for a more rigorous approach to issuing car driving licenses.   It would not be unreasonable to demand certification from a medical examination that an applicant is physically and mentally competent to drive a car.  That license is really a permit to take control of a lethal piece of machinery capable of delivering military grade mayhem in the wrong hands.  The harder a license is to obtain, the more it is treasured.  Perhaps we are setting the bar too low and allowing that driving license to be regarded as a "right " rather than as a reward for gaining a higher skill.

If we adopted such an approach, we would need to accompany it's legal importance with a corresponding penalty increase for those detected driving unlicensed.  In reality that penalty would need to be sufficiently draconian that the very idea of getting behind the wheel unlicensed would be "unthinkable " !   It is the fear of consequences that upholds the principle of our entire legal system.

The issue of driving licenses is the prerogative of each individual state and such licenses receive reciprocal recognition across the entire nation.  As a consequence, there is little variation in the driving laws applying in each state and the procedures for obtaining a driving license.  If a new safety standard is to apply, it would need a degree of uniformity.

The only question is whether demanding a higher driver standard would deliver sufficient risk lowering reward to compensate for the costs involved - and the public backlash.

Saturday 18 April 2015

Unveiling Life's Mysteries !

We are becoming ever more closer to being able to predict the length of our lifespan - and what medical condition will probably end it.   The world of genetics opened the tantalising prospect of genetic coding acting like the blueprint of how we as individuals are put together.  Each year we are getting better in understanding that code and relating it to the diseases that ravage the human body.

Science has teased out the abnormalities that can greatly enhance the likelihood of a woman suffering breast or ovarian cancer, and where the risk is severe this has often led to a conscious decision to have both breasts and ovaries surgically removed as a safety measure.  Now researchers are closing in on Alzheimer's disease and there is the prospect of being able to give warning ten or even twenty years in advance that it going to end that persons life.

It seems that eye retina changes may herald it's approach. A software programme is being developed that will analyse the retina to detect the abnormalities of colour perception, motion and peripheral vision that are a marker of coming Alzheimers.

Hopefully, early detection will enhance the prospects for better treatment - and perhaps one day a cure for the whole range of diseases that figure prominently on death certificates, but it does open an aspect of doubt in some people's minds.  There are certainly a great number of people who would prefer not to know what until now have been life's greatest mystery - when it will end and what will be the cause ?

The problem is that this is knowledge that completely affects lifestyle.  Some families decide not to have children if one or both have a genetic marker that may pass on a disease such as Hemophilia. There is a fear that if genetics becomes part of our medical history it may preclude us from getting life insurance cover or even being considered as an advanced student in scientific study.  Why invest money in a person likely to die young when such information is available to a selection committee ?

When reading a subject's genetic code was first developed it cost thousands of dollars for each individual application.   That has shrunk to a mere handful of dollars and there is the chance that in the near future it will become an automatic test whenever we consult a doctor or have dealings with a hospital - just as a blood test is the normal first reaction of the medical fraternity in encountering a new patient.   Whether we like it or not, our genetic mysteries may soon automatically be taken into account when evaluating treatment.

That is probably now inevitable.  Genetics is such a valuable tool that to ignore it would be impossible. It will quickly becomes the basis for advanced drug research  and we can expect consequent breakthroughs that will alleviate suffering and bring some rampant diseases under control.  The benefits will far outweight the loss of privacy we will be obliged to give up for the common good.

This presents an interesting challenge to the computer industry.  It can be argued  that our genetic blueprint is definitely our personal property and it should be each persons personal decision whether or not to share it with others.  Ideally, access should only be able to be activated with our permission and this necessitates storage behind some sort of access block.   The concept of PIN or password comes to mind, but so far these have fallen short of the technology devised by the "hacking industry "- which includes the best brains of government agencies.

Just as the brain power of two scientists cracked the mystery of the double helix, similar forensic thinking is needed to built a firewall between our genetics and the intrusion of others.  It should be safe from intrusion - except when it's owner freely and willingly agrees to divulge it in his or her own interests.

It might be possible to create an exception code to over ride that discretion in certain circumstances - such as when a person presents at a hospital emergency ward unconcious and in dire medical condition.   Perhaps that persons individual DNA could allow access - but only when a senior hospital emergency doctor has convinced a judge that proper treatment requires that action and the DNA enables the correct genetic coding to be identified.

That is probably beyond the scope of present computer technology, but either the advances of genetic testing bring with it unintended consequences because we are unable to safeguard that knowledge to it's individual owner, or it is a problem that those who are constantly advancing the computers capacity manage to solve.

Whether genetics becomes a blessing or a curse depends on the answer to that question !


Friday 17 April 2015

The ICAC Disaster !

Australia's highest legal body has delivered a four to one ruling that has rocked the tenets of justice in New South Wales. The High Court found that ICAC  "had no power to investigate " Deputy Crown Prosecutor Margaret Cunneen, vindicating Cunneen's dogged search for legal justice through the lower courts.

This strange case evolved when Cunneen's son and his girl friend were involved in a car accident. An anonymous complaint was lodged with ICAC claiming that Cunneen coached her son's girlfriend to claim chest pains to avoid a breath test - and that this constituted corruption. This young woman was taken to hospital by ambulance, where blood was automatically taken and analysed for alcohol - returning  a negative result.

Cunneen was a high profile prosecutor and her success obviously created enemies.  She claimed that this was a malicious accusation, but ICAC raided her home in the full glare of the media and seized not only her phone, but also the phones of the paramedics who attended the accident.  It quickly gained the notoriety of a "get " Cunneen witch hunt.   ICAC refused to divulge the name of the person who lodged the complaint.

The exact input of that High court decision probably eludes those not trained in the law but it seems that it revolved around the fact that "no police officer acted dishonestly " in processing the accident scene, and therefore the decision to investigate Cunneen fell outside the ICAC mandate.

This individual case has already racked up costs in excess of a million dollars - which will go against ICAC - but the possible ramifications of the finding could run to a cricket score of costs.  ICAC was originally set up by then NSW Premier Nick Greiner twenty-five years ago to root out corruption.  Greiner himself fell foul of it on a technicality and resigned as premier.   More recently, Barry O'Farrel quit the states top post over contradictory evidence over a bottle of wine.

There is a huge brief of cases handled by ICAC or in due process and obviously the entire legal profession will be culling through this finding to see if it applies to their clients.  High profile actions include the Australian Water Holdings case, the Liberal Party donations scandal,  and of course the coal licensing fiasco involving both Eddie O'Bied and Ian McDonald.   The ramifications may be extensive.

It seems that the legislation to set up ICAC decades earlier was flawed if it placed limitations on it's ability to instigate investigations - or it was wisely framed to stop misuse which seems to be the motivation in the Cunneen case.   There are mutterings about consolidating ICAC by merging it with other legal units but probably the wisest course would be to scrap it - and start again.

The damage is already done in that past ICAC findings will be subjected to this new ruling and compensation will run to millions of dollars.   No doubt individual cases will trickle through the courts for years, cleaning up this mess.  Trying to patch up a botched legal framework is an invitation for further high court challenges.

What we need is a brand new ICAC act in which the intent of the body is clearly spelled out and the parameters are clearly defined.   Anything less will simply prolong the agony !

Thursday 16 April 2015

Police Pursuits !

Every time an accident arises from a police pursuit there are calls for this policing procedure to be abandoned.  Of course the public is equally angry when a speeding driver or a speeding rider collides with a pedestrian or another vehicle and maims or kills another innocent road user.

A Coroner's enquiry has just cleared two police officers in the death of a sixteen year old motorcyclist who met his death while being chased at Mussellbrook in 2013.  The inquest heard that a stationery speed check detected a motorbike travelling at 121 kph in a 50 zone and activated lights and siren in pursuit.  The rider screeched to a stop to allow a pillion rider to alight and then tried to make a high speed escape, ending when he failed to round a bend and crashed into a post and rail fence, sustaining fatal head injuries.

The inquest was told that this rider held learner permits for both car and motorbike and would have undertaken the escape attempt because he understood that his speed in a 50 kph zone would have invoked the cancellation of both permits and probably caused the loss of his job.  The police testified that they had been unable to read the registration numbers of the bike and and the pursuit was necessary on public safety grounds.

The vast majority of citizens instantly obey police orders to pull over when a driving offence is detected. In many cases those who do not lack a driving license or are at the wheel of an unregistered - or stolen - vehicle.  Escape is the first thought that comes into the mind of many juvenile offenders and police pursuit procedures are strictly monitored - and abandoned whenever the risk factor to others is deemed to be too high.

To unilaterally ban police pursuits in all but cases involving crimes such as terrorism or murder would simply hand a "get out of gaol free " card to both the criminal element and the "lead foots "  of society.  It would be a positive incentive to speed away instead of stopping at a DUI checking station and in most cases this would still involve very high speed.   It could very easily increase rather than decrease the risks to the public.

One factor that has reduced the incidence of police pursuits is the implementation of what has been called "Skye's Law " in this state, named after a little girl killed when a fleeing car driver rammed her parent's car and caused her fatality.  It simply elevates causing a police pursuit to a major crime category - with an appropriate severity of punishment.  Many who may have been tempted to "make a run for it "now have second thoughts.  Probably the best way to diminish police pursuits is to vigorously apply this law to offenders.  Consistent law enforcement is proven to reduce driver misbehaviour, as the ever lowering figures of those driving with illegal blood alcohol levels illustrate.

It is impossible to eliminate all risk.   There are some who will try and escape despite the penalties that apply and we can only hope that the limitations on police pursuits can implement a reasonable safety level.  It is the job of the police to catch offenders and they need the facilities to achieve that end.  Banning police pursuits is not the answer !

Wednesday 15 April 2015

Different Prisons - Different Outcomes !

Five prisoners in the Supermax prison at Goulburn are on a hunger strike because the amount of money that can be deposited in their prison account by supporters has been reduced from a hundred dollars a week - to just fifteen dollars and fifty cents.  They claim they need this money to buy Halal food, despite prison fare conforming to the requirements of the religions of prisoners.

These people are in the Supermax because they have been convicted of either planning or attempting to launch a terrorist act in this country.  They are also banned from using Arabic or other Middle Eastern languages in communications with those outside prison to prevent passing instructions to continue their terrorist ambitions.

These five willfully broke Australian law and have been using financial support from their followers in this country to obtain luxury food - and there have been many attempts to smuggle in mobile phones to allow them to bypass the monitoring of prison phone calls.   They claim these impositions are unfair - and are on hunger strike in protest,

In the Middle East country of Saudi Arabia a 57 year old Australian grandfather languished in prison for being in possession of alcohol - which is totally banned.   It seems that this was the result of his home brewing experiment and he was caught with two cases of low alcohol beer and two cases of red and white wine.

His expectation was that he would be expelled from Saudi Arabia within forty-eight hours, as this was the experience with people previously caught with illicit alcohol.  Instead, he has been imprisoned for five weeks so far - and has been subjected to twenty-eight strokes of the cane as punishment.  It has been necessary for him to sell his house to fund legal representation and there are no indications how long he may be held in the country until the matter is settled.

This man who held down a job as a manager of an engineering business has been released on bail, but he is prevented by law from working and must fund his own living and livelihood until his case comes before a judge.   He freely admits that he is guilty of breaking Saudi Arabia's law and his actions in brewing alcohol for his own consumption was a stupid act.   The problem is that the Saudi justice system is capricious - and the severity of the final outcome is entirely unknown.

It seems strange that many people don't seem to understand that when they cross a national border and enter a foreign country they immediately become subject to the laws in place in that country.  The fact that the law of their home country may entirely contrast laws in places they are visiting confers no immunity.  It is also their responsibility to become aware of whatever laws are in place that so differ and avoid the outcome of breaking that law and incurring consequences.

Usually, the most the Consulate of the prisoners home country can do is to bring comfort by regular visits and make sure that the detention of one of it's citizens is being closely monitored - and kept before the attention of those in power where the charges are pending.  In some cases, this may result in the authorities opting for expulsion rather than imposing a period of incarcerations, but the decision of the host country is paramount.

Those terrorist prisoners in the Supermax are constantly probing for weaknesses in Australian law and agitating to gain media exposure.  The hunger strike is a gambit to draw attention and it seems that they have lost none of their fervour for causing damage to the Australian way of life - which they abhor.

In most cases either they or their parents came to Australia to escape the dangers ever present in their home countries.   It seems strange that they want to impose those same divisions here that were the cause of their original home countries becoming untenable.

Fortunately, they are a small minority in the vast majority of new settlers who find Australia an oasis of peace in a troubled world !

Monday 13 April 2015

"Rave " Parties !

One Saturday night a thousand young Sydney people surreptitiously gathered at an abandoned warehouse in the suburb of Botany for a "Drum and Bass "party.  The actual location was carefully screened and those attending only learned the address at the last minute via a mobile voice mail.  This was a big event scheduled to go until dawn and would feature forty DJ's operating from separate stages.

This event was illegal in that it did not have the necessary permits and late in the night the police swooped with a raid.  Most of the partygoers dispersed peacefully, but there were several altercations with the police that involved thrown bottles - and one or two arrests.  No doubt both alcohol and drugs would have been present at such an event but the police claim that the close down was on safety grounds.  Having that number of people in a warehouse lacking exits and fire safety measures was too big a risk factor.

One of the rueful partygoers described the police breaking up what seemed to be a good party as a "bummer ", but otherwise they seemed good humoured.   It does tend to illustrate the wide gulf between the party aspirations of young Australians and the venues that cater for their needs.

Whenever an official event is openly advertised in the media and widely publicised  there is the expectation that the police will be covering all entrances with drug sniffer dogs and searching bags for illicit alcohol.  Any such public event has the expectation that paramedics will treat some cases of adverse drug reactions - and there is the ever present possibility of an untimely death, and yet the measures to save lives are resented by most partygoers.

Perhaps that secret rave party last Saturday night was an omen on how the party scene will develop in the future.  As long as society has existed, control measures to prevent excess are both broken - and ignored.  In the early days of settlement, Sydney town was awash with sly grog shops.   Then there was the era of the ever present SP bookie - before the coming of the TAB made legal betting available to all.

The reality is that an overwhelming number of our young people use drugs in much the same way as their elders used alcohol - to get a "high "that lasts for some time.  It is also an indisputable fact that the vast majority suffer no permanent harm, but the unavailability of what they normally use will cause them to try a substitute - and some of these are highly addictive.   It also invokes that old wisdom that "forbidden fruit is sweet ".   The very fact that something is illegal can be a huge incentive for those with a mix of bravado and the wish to stand out amongst their peers.

Perhaps we are reaching a more permissive age where the impetus should be on saving lives rather fighting a losing battle.  Even when the police use maximum effort and heavily police the entrance to public entertainment it is painfully obvious that drug use continues unabated.  On the world  scene, legalizing of Marijuana seems inevitable and the biggest problem with drugs such as Ecstacy is the unknown strength factor when it is produced in illicit drug labs.

It would make more sense to fortify the medical aid instantly available at crowd events to treat drug misadventure and consider legalizing the least harmful drugs to ensure a constant strength factor.  The biggest hurdle seems to be acceptance that it is morally acceptable to gain the same level of euphoria  delivered by alcohol by ingesting a mix of chemicals.  Years of implacable opposition to the very idea of drugs has produced a mind set that will be difficult to change.

At present, we are horrified when someone dies of a drug overdose or a drug trial reacts adversely to the users metabolism.   If these sort of rave parties take hold there is the liklihood that more people will die because medical help will not be quickly available and the venues will be beyond a quick response, not to mention the danger of crowded scenes in buildings that completely lack safety features.

Perhaps now is the time to evaluate the entire drug scene - and bring reality into the picture !

Win Some - Lose Some !

We live in an ever changing world and one of the things that is disappearing is that familiar big red mail box that used to stand at the kerb in just about every suburb.  They are going the same way as the public telephone booth, made redundant when the mobile phone burst onto the scene and now it is rare to see a person without one in their hand.

It seems that the cut off point is twenty-five letters posted each day, and the "decommissioning " rate has seen the removal of 190 mail boxes in New South Wales between 2012-14.  It seems that the traditional walk to post a letter is getting ever longer.

This inconvenience will fall heavily on the aged and those with infirmities and it is likely that a new posting trend will emerge for those still using "snail mail ".  As long as the postal service continues a daily mail delivery, it will be possible to hand that postperson outward mail and thus eliminate the need for mailboxes.   If that trend takes hold it will hasten the extinction of public mailing facilities.

Towards the middle of this year New South Wales will fall into line with other states and allow pharmacists to give the annual flu jab to customers over the age of eighteen years.  This will draw the ire of the medical profession and in the past pharmacists were required to have either a qualified doctor or nurse on the premises to provide this service.

It seems that the Federal government is closing the "Conscientious Objector " loophole that is being used to avoid vaccinating children against childhood diseases.  A small core of anti-vaccination fanatics are very vocal in claiming that vaccines are responsible for spreading Autism, despite this being totally rejected by the scientific community.  This has led to vaccination rejection becoming a "fad "that is endangering the mass immunity as unvaccinated child numbers reach forty thousand - and continue to grow rapidly.

Some religions contain beliefs that oppose vaccination and these are accepted under our religious tolerance laws, but anyone can claim to be a "Conscientious Objector " - without any sort of qualification.   From January 1, 2016 a law change will withdraw the Family Tax benefit, Child Care benefit and the subsidies for fees at childcare centres for unvaccinated children that could amount to over $ 15,000 a year.  A claim to be a Conscientious objector will not be an acceptable defence against failure to vaccinate.

The problem is that the right of choice for the few can allow the reintroduction of diseases that have long been conquered to return to this country.   The scourge of polio has almost been defeated on a world wide basis, but resistance to vaccination in a handful of countries is allowing it to emerge and once again take hold.   Tuberculosis was once a scourge in Australia but a dedicated campaign of mass screenings saw it defeated.

Change has always been with us.  The introduction of one new concept sees the withdrawal of another older  service- just as electricity banished gas as the means of lighting our homes.  There will always be sceptics who disagree with what others see as fundamentals.  There are many who still contend that the earth is flat and some insist that the moon landing was an event filmed in a movie studio.   These are harmless delusions, but when they take deeproot in the community and become a matter of life or death to the health of others we need to take them seriously.

It will be interesting to see how these convictions fare when they come into conflict with the mighty flow of dollars !

Sunday 12 April 2015

Interpretations !

The advertising industry exists to create favourable impressions that induce people to buy the goods they describe.  Sometimes the truth is stretched, but the industry insists on standards that ban outright falsehoods - but many claims are open to whatever interpretations exist in customers minds.

Coles has just been served with a $ 2.5 million fine by a Federal court and the final fiscal tally will be even higher when costs are taken into account.  It seems that the description of bread this grocery chain offers for sale has been found to be incorrect.    Coles advertises this bread as "Freshly Baked "and "Baked Today " and the court claims that this leaves the impression that the bread is actually fully baked in store from fresh ingredients - daily.

The fact is that this product is partly baked far removed from the actual selling place, frozen - and the baking process is finished off in the store where it is sold.   It seems that this offence comes down to the actual interpretation of what "Freshly baked "and "Baked Today "means in the minds of each individual customer.

Many would contend that if the final baking process happens on the day it is offered for sale that would satisfy both claims.  The fact that part of the preparation happened prior to that day is immaterial if the act of turning it from dough to bread happened on the day of sale - then it meets the criteria required.

It seems to involve a time factor. Partly pre-baking speeds up the in store process and allows bread fresh from the finishing oven to go on sale - and the real determining factor is price.  In the eyes of many people - bread is just bread - what matters is how cheaply it can be obtained to meet their needs and that depends in most cases on the baking skills the manufacturer applies.   There is no contention that the bread obtained by this part process is other than perfectly good bread !

Some will regard this prosecution as sheer nit picking.  We live in an ever changing world and just about every aspect of industry  is subjected to change.   The race is on to create goods at ever lower prices and to do that the manufacturing process needs to change - and in many cases - be speeded up by using unconventional methods.   Coles has found such a way to bake bread and there would have been no problem if they had not made the claim that it was "freshly baked " and " baked today ".  The claim that is incorrect is contentious, but obviously a ruling by the Federal court has not been in Cole's favour - and they have been heavily fined.

This case will certainly have all aspects of the retail industry taking a second look at their advertising claims.   One area that constantly draws attention is the use of the "Australian made " logo.   We often see that on products that also make the claim that they contain "Australian and overseas products "- and where that overseas content is somewhere about one percent.   With the interpretation of truth used in this Coles bread case, such instances could lead to a fine.

No doubt Coles will simply payup - and remove those offending signs - and still continue to offer it's bread made by finishing baking in store.    When push comes to shove, the final decision is made by the customer, and if the product looks like freshly baked bread - and smells like freshly baked bread - and tastes like freshly baked bread - then it is freshly baked bread !

Saturday 11 April 2015

Trigger Happy !

Most Australian are perplexed about the litany of cases in America where white cops shoot unarmed blacks and condone the shooting by claiming that they fired in "self defence ".  Finally - the ubiquitous camera phone delivered damning evidence that will see a white policeman stand trial for murder.  The likely outcomes is that all police will be required to wear body cameras and a visual record will become evidence when they interact with the public.

It was the triviality of the offence that will amaze many people.   A fifty year old black motorist was pulled over because he had a defective tail light. He got out of the car and confronted the policeman and there seemed to be a tussle over the cops Taser, which dropped to the ground.   The unarmed motorist fled - and with his back turned the officer pulled his gun and fired eight shots into his back, killing him instantly.  Before another officer arrived, he picked up the Taser and dropped it beside the body to support his self defence claim.

A witness used the camera in his phone to record this entire incident and made it available to the dead man's relatives - and from there it went viral.  The police officer has been fired from the Charleston, North Carolina police force and is in prison awaiting a murder trial, but this incident reinforces a spate of suspicious killings in recent times when each death has involved an unarmed black man and gun fire for no clear reason.

There seems to be a lot wrong with the thinking of police in the United States.  The fact that there is a gun culture that makes it likely that any person a cop approaches may be armed  is good reason to make them cautious but in most cases they seem to demand that the person lay on the ground and they are quick to apply handcuffs.  News footage reinforces this custom and it is also evident that any incident involves an excess of additional police cars and considerable backup for even the most trivial event.   It seems that the police involved demand instant obedience.  There seems no question of equality in dealings with the law.

That same aggressive attitude seems to be finding it's way into the stance of police here in Australia. Guns are becoming more prevalent in the hands of bikie gangs and the drug industry and the incidence of terrorism has hardened police attitudes to confrontation when dealing with the public. Fortunately, the actual firing of a police pistol involves a thorough investigation of the circumstances, although this was also promised when Tasers were introduced - and has been found wanting.  In many cases Tasers are used to avoid the need to physically subdue a prospect and there have been accusations of gross overuse.

This North Carolina incident in the US will probably accelerate the inclusion of a body camera on police uniforms and we would be wise to adopt that custom here.  Where it is in use there has been a noticeable decrease in confrontations with the police because evidence will clearly negate false claims - and that is applicable to both sides of the law.   Just as formal interviews between suspects and police are taped and recorded, every encounter between the police and the public would be the better for a sound and motion record as evidence.

There seems no doubt that at least a portion of police in the United States are quick to use their guns and could be accused of being "trigger happy ".   The Tasers on issue here in Australia are equipped with video cameras, but in many instances there are claims that the video was either "turned off "or "obscured ".

It is essential that when body cameras become standard issue it be ensured that they are never not operating at all times - and in all circumstances.  They present the long awaited opportunity to remove the element of doubt whenever there is a disparity between two points of view.

Friday 10 April 2015

The Global Tax System !

The Australian Tax office is holding an enquiry to investigate why giant global companies that sell their products in Australia pay mere pennies in tax in comparison to their global earnings - and they have Google, Apple and Microsoft directly in their sights.

Welcome to the mysterious world of the global tax system, and the many revolving doors that are open to interpretation when deciding how the tax pie is shared - and these three companies have a host of similarities that work in their favour.

Firstly, their product is basically intellectual property which in most cases devolves into an actual physical form and is producing in China.  It is shipped to Australia from a foreign country and probably invoiced from a totally different country in another part of the world.   It is subjected to patent laws and the disclosure requirements of the United States, and it is therefore almost impossible to dissect the cost structure that applies to each and every part of the assembly and sales process.

There is ambiguity in the actual location of the company that owns the product. It's production facilities may be in one country and the bulks of it's research and development in another, but legally it is registered in a third with a low corporate tax rate - such as Singapore or Ireland.  That raises the issue of the right of sovereign countries to set the rate at which they collect taxes - and in Australia the corporate rate is set at thirty percent while low cost Singapore levies at just seventeen percent. There is a distinct advantage in paying corporate tax where the level is lower.

Within each company structure there is a wide variance on how costs will be determined and allocated at each stage of the products journey from manufacture to arriving in the hands of the end customer.   There have been many accusations that transfer invoicing is used to lower the value of imports and thus lower the tax margin that applies - and at what stage associated costs such as those of research and development are added.   This compilation has a direct bearing on the profit margin claimed - and on which corporate tax will apply.

Accounting is dominated by the "big four " firms with global reach and they employ an army of legal and technical people tasked with providing the best advice on how to structure  corporations to avoid paying higher  taxes.  In some instances, this avoids paying the GST by shipping and invoicing from a foreign source to take advantage of the concession that applies to in-line sales.

This enquiry is currently grilling the top executives of the firms involved and they will have the backing of their legal and accounting staff to determine how they answer questions.  It is becoming clear that there is a vast difference in the global interpretation that can apply to matters such as transfer invoicing and cost allocations that apply when tax matters are determined, but it is also clear that there is an advantage in locating the head office of a profitable firm in a country with a low tax take.

No doubt the Australian Tax office will, extract some concessions that improve the tax flow but it is also clear that any country with what is considered a high corporate tax rate will be at a distinct disadvantage from regimes that set a low tax take to attract corporate business.


Thursday 9 April 2015

No Free Lunch !

The Federal court has handed down a ruling that will strike fear into many Australian households.  It has ordered Internet providers taking part in what are called "Peer to Peer file sharing networks " to hand over the names and addresses of their customers who have been illegally downloading Hollywood movies without paying a hiring fee.

The Internet providers have just twenty-eight days to lodge an appeal against this "preliminary disclosure " ruling and the judge has chosen not to impose a ceiling on the amount of money that may be claimed for what the owners will regard as illegal access to their property.  If an appeal fails, it opens the door for some 4,500 Australian families to receive what are called "speculative invoices "- a claim for several thousand dollars in damages to avoid being dragged through the courts.

The cost to legally access a film is usually about twenty dollars but a "speculative invoicing "claim could run to as much as seven thousand dollars - and do huge damage to a persons credit history.  It could drag on in the courts for ages and cost a fortune in legal representation and many people simply negotiate to settle for a lesser amount.  Usually that reduces the claim from thousands to hundreds of dollars, but it is still a blow to family finances.

Such was the challenge that the Internet gave to the entertainment industry.  There has been a certain ambiguity about intellectual property rights when music or film is viewed together by friends and this introduced the concept of "peer to peer file sharing networks" .   Was this any different from a group of people gathering together to view a film or listen to music - and should each individual have to contribute a payment ?    Ignoring this doubt,  many went ahead and downloaded for free.

Piracy has long been a curse on film studio profits.  Early in the electronic age it began when hidden video cameras were smuggled into movie theatres and the film and soundtrack recorded.  This poor quality recording was transferred to DVD's which were sold in flea markets for a few dollars - but enought to make bums on theatre seats dwindle.   The product now seen on file sharing networks is high quality and is making serious inroads into movie and music profitability.

It seems that the court action that has resulted in a judgement to force Internet providers to hand over their clientile base information is the first step in a publicity campaign designed to create fear.   The mere threat of being dragged into court and possibly ordered to pay thousands of dollars in damages will probably cause the vast majority of people to steer clear of film and music downloading.  To be effective, the industry will need to be relentless in pursuing prosecutions and hard hearted in negotiating settlements.   A lot of people will be seriously financially damaged - as a result.

Fortunately, the judge who ruled on this case did impose a condition that will prevent "speculative invoicing " letters being issued prior to their format being provided for his scrutiny - and acceptance. There seems the possibility of mercy if limits are imposed, but there is no doubt that this is the first blow in a concerted campaign to restore the right to gain profit from intellectual property - for without that both the film and music industry bases face collapse.

For those who have been enjoying free downloads the day of reckoning has arrived.   The chickens are coming home to roost - and the future is uncertain.   That just tends to underscore an old witticism that someone tagged to the offers that usually accompany "deals "!

There's no such thing as a free lunch !

Wednesday 8 April 2015

A Medical " Filter " System !

It is an inescapable fact that our Medicare system is becoming a drain on the economy.  The government tried to impose a five dollar co-payment on patients bulk billed by their doctor but that idea crashed and burned when it failed to pass the Senate - and it has been abandoned.

Now it is proposed that the rebate doctors receive from Medicare for their services to patients be frozen at the present level.   Inevitably, as staff wages rise and the cost of drugs and services increase the income of doctors will decline and they will have to impose a charge on patients to maintain their income level.  It is estimated that by 2018 they will need a co-payment of about $8.40 for each visit.

That idea simply transfers the blame away from the government and places it squarely on the shoulders of the medical profession.  Either way, the cost to see a doctor rises  and it kills the much vaunted "bulk billed " option that was such a boon to the low wage and under privileged strata of our society.

Any change to medicine comes up against a rock hard and implacable dogma that sees those with the title of "Doctor " resistant to any form of change.  The medical profession insists that they - and they alone - must evaluate the patient and authorise even the most minor procedure - and that even transcends into a visit to receive the annual flu shot.  Doctors guard their turf jealously.

Perhaps we need to revisit the whole concept of medicine and reevaluate what is in the best interests of both the doctor and the patient.  That thought will run headlong into the contention by doctors that any change to the present regimen will involve patient risk - but a reality check discloses that a great many doctor's visits are simply routine and for matters that do not involve a medical examination.

How many times do we visit our doctor to get prescription renewals ?    When we have an annual check for skin cancers by a Dermatologist or many other routine specialist visits these all require a "referral " from our General Practitioner.   Surely the time has come when patients should first pass through the " filter  " of a Paramedic nursing sister authorised to renew prescriptions and handle routines such as referrals - and who would carry out the normal procedures of checking blood pressure and reevaluating medication normal on such GP visits.   The annual flu shot would certainly fit into such a routine.

Paramedics are skilled people able to spot symptoms that need attention by the doctor and who would pass the patient for a consultation automatically when specifically requested.  If the aim of Medicare cost containment is to be met, we need to filter the patient flow and reduce the doctor's work load to those who need specialised knowledge.

Undoubtedly, such a suggestion will be rejected by the medical profession, but if we blindly stick to dogma and make no change we will see a steady erosion of those who fail to consult a doctor because of the cost and instead rely on advice from their friendly local chemist.   There is also the danger that if the Medicare rebate loses value it will see consultation times shaved.   Face to face time with a qualified doctor may decline to the point that forensic medicine becomes meaningless.

We could easily see Australian  society revert to the pre-Medicare days where desperate people were being sued for unpaid medical bills and many existed with curable medical conditions that went untreated because visiting a doctor was out of the question - on cost grounds.  Even in todays more enlightened age, we tend to have doctors grouped in fashionable suburbs while some country towns lack even a single consulting general practitioner.

We need to live within the confines of what is economically possible to spread the Medicare net for the widest coverage.   Perhaps neither doctor nor patient welcomes change, but sheer economics is going to force a review - and we need to face reality.   The old medical model has passed it's use by date.  A clever country will adapt - and universal health care will survive  !




Tuesday 7 April 2015

The " Power " of the Internet !

It could be termed one of those "Only in America "stories, but this one reached into the hip pockets of folk all over the world - and certainly some of the money came from Australia.

The American state of Indiana has passed what is called the "Religious Freedom Restoration Act "which allows people to refuse service if a customer offends their religious views.  It seems that a US ABC 57 network reporter was in the tiny Indiana town of Walkerton and approached the father and daughter proprietors of a pizza shop - and asked them for their reaction if a gay couple wanted them to cater for their wedding.   Both had strong religious views - and the daughter replied that they would decline.

It was a purely hypothetical question.  Few weddings are catered for out of a cardboard pizza box and this tiny shop simply eked a living as the local takeaway - but that interview brewed a storm of reaction across the entire United States.  The fire and vitriol was enormous and there was talk of burning the shop down. Harassment and spiteful contact forced both father and daughter to close the business and go into hiding.  It was a financial disaster - caused by a simple, off-the-cuff remark.

Then a miracle happened.   This incident was getting a big mention in the national news and a cable company started an appeal on the Internet.  Instantly - a trickle of donations increased in volume and quickly passed the appeal target - and kept growing.   As the total mounted, it took on a life of it's own and that father and daughter achieved fame as the reason for sending those donations - and the amount in the kitty quickly passed a million dollars.

What happens next is unclear.  That pizza shop may never reopen and perhaps the father and daughter may retire, but the whole thing can be directly attributed to "happenance  ".   A TV reporter at a loose end and looking for a story in a small town chose to ask a seemingly innocent question of one of the locals - and the reply lit the fuse that drew an action response right across a nation of over three hundred million people - and onward to the wide - wide - world.

That could never have happened before the electronic age.  The coming of the Internet has wired the entire world into an instant news cycle and we have all become players in the moral decision making process.   What passed unnoticed in a previous age will now have us sitting at our computer keyboard or Smartphone and passing judgement by way of Facebook or Twitter.  The means are at our fingertips to contribute a few dollars - or to blast our political representative with our view and demand action.  The Internet has delivered enormous power.   Whether that is used for good or evil is another question !

This past weekend competing mobs did battle in the streets of major Australian cities on an issue that is fast dividing this country.   The police were tasked with keeping the competing sides apart and in essence that was a religious battle.   One side of the spectrum is protesting at the rising tide of Islam in Australia and demanding an end to Islamic migration and the cessation of new prayer halls and mosques - and the banning of Halal identification on food products.    The other side regards this as a form of racism and demands the closure of immigration detention centres.

If nothing else, that incident in Walkerton, Indiana illustrates the care we need to take when someone pushes a microphone in our face - and asks a question.  Depending on our answer, we may face financial oblivion and end up tarred and feathered - and run out of town on a rail - or we could find ourselves a national hero and bestowed with a bounty of a million dollars.

The world wide web has replaced that lady with the sword and the scales whose statue represents justice outside most court houses.   It's just that we need to weight our answers and consider all the implications - before we commit to an answer !


Monday 6 April 2015

The " Au Pair " Option !

In Britain the upper classes enjoy the services of legendary "Nannies "who teach their children social etiquette and manners.  The less affluent countries of Europe provide " au pair " girls who are eager to live in their hosts homes and look after their children in exchange for what amounts to "pocket money ".   The attraction is the opportunity to travel about in a different country and  learn to speak better English.   The gain is mutual benefits for both the host and the au pair

Many will be surprised to learn that about ten thousand au pairs are working in Australia each year and some people are thinking that this should be expanded to provide an answer to the burgeoning crisis overwhelming the child care industry.   The main obstacle seems to be a restriction on entry visas that limits the stay to just six months.  Advocates suggest that this be extended to at least twelve months - and in exceptional cases - even longer.

This is an unregulated industry, but the general terms are that the au pair boards with the family and receives a stipend of somewhere between $ 200 and $ 250 a week.  In exchange, the au pair provides about thirty hours of childcare a week, allowing the recipient to return to the work force or enjoy additional leisure time.

We are surrounded by low wage Asian countries, many of whom provide great numbers of au pairs to Hong Kong and Middle East countries.  It is suggested that if the child care rebate was extended to au pair arrangements it would most likely bring relief to what seems an otherwise intractable problem.  At present there are too few places available in child care and the cost is beyond the ability to pay for women in low wage jobs.

The au pair option would surely apply most to "middle Australia ".  A family considering employing an au pair would need a home capable of providing personal living space and accept a foreign young woman into their living arrangements.  Unfortunately, there have been instances overseas where employers have regarded their au pairs as little more than slaves, with appalling living conditions and unpaid allowances.  We would not want that to happen in this country.

It is also inevitable that there would be cases of incompatibility.   Sometimes children do not warm to a stranger - and sometimes the presence of a stranger creates undesirable emotional attachments that were not intended - with disastrous results.  It is essential that if we are to develop an extended au pair regime we need an office of review that is available to both parties to allow adjudication of disputes - and relocation where that is necessary.

There are obvious problems with that six month visa limitation.  In particular, where an au pair is caring for a child with difficulties - and autism comes to mind -  it takes time to develop a relationship.  Whether the child care rebate is extended or not, there certainly is an opportunity to extend au pair use in this country under the conditions that presently apply.

It has worked well in Europe and other parts of the world.  There will be the usual problems with those overstaying their visas and not all pairings will be harmonious, but by and large it is a sensible answer to at least provide child care at an affordable price.

Sunday 5 April 2015

Sore Losers !

The NRL has been thrown into panic mode after a disgraceful melee at the end of a hotly contested game between Canterbury Bankstown and South Sydney.  The scores were level in the final minutes of this game at ANZ stadium and then the Bunnies were awarded a vital penalty and won 18/17.

The Bulldogs fans erupted in fury.   Full bottles of water were thrown from the stands onto the pitch and these missiles hit the referee and other match officials. A touch judge was knocked down and suffered a broken shoulder - and was rushed to hospital.  What astonished officials was the sheer volume of that barrage of bottles.   They came thick and fast and there was a very real danger of serious injury - or worse - to all those on the playing area.

When the fans finally vacated the stadium there were ugly scenes in the streets.  The Bulldog fans were truculent and at one stage a Bunnies fan was "King Hit " without provocation and only the intervention of the police stopped further clashes.

Bulldog fans have long had the reputation for unruly conduct but these incidents were way out of hand.  This was not a case of an isolated fan throwing a bottle.   Probably a bottle thrown started some sort of crowd hysteria that led to an avalanche of bottle throwing, but the League is determined to nip this in the bud before it becomes a habit at future games.  It has the potential to cause fans to stay away in droves - and perhaps cause many to abandon this sport in favour of soccer or Australian Rules.

No doubt club officials will be carefully scrutinising the video coverage of those in the stands to identify the culprits - but the sheer volume involved means that this will require mass punishment. This will certainly break new ground.   The usual punishment for bad behaviour is to ban a spectator from a given number of games but it is possible that all Bulldogs fans may have to be mass punished for a period of time to stamp out bottle throwing.

Another option would be to ban all forms of bottled liquid at game venues.   Both beer and water would only be available in soft plastic single serve measure, and gate security would need to search bags to prevent anything considered a potential missile being brought into the stadium.  That would be a sad turn of events when we consider the long and proud history of Rugby League as once the major sport in this state.

One thing is absolutely certain.  Game officials need to come down hard and act swiftly.  It seems that we may be on the cusp of what was once known as the "British disease " - when soccer fans in the UK behaved so abominally that they were banned from travelling to much of Europe.  In some instances, games were played to empty stadiums - behind locked gates, with consequent financial hardship to game organizers and the clubs.

Australian soccer still has a residual problem with fans who smuggle flares into matches and light these in the stands and throw them onto the pitch.  This has become fairly isolated but only because the offenders are dutifully tracked down - and suitably punished.  British soccer is now again welcome in Europe and it seems that the "British disease "has been successfully vaccinated.

Perhaps this bottle throwing incident was simply a rush of blood or a typical case of mass crowd hysteria, but the reaction needs to be sufficient to make sure it does not occur again - and does not develop into a typical fracas at the end of closely scored games.

Most Rugby League followers watching the game on television would have been appalled at what may become called "the Australian disease " if it is not promptly curtailed !