Tuesday 30 June 2015

Purchase Restrictions !

At first glance it seems to be a wonderful idea.  It is proposed that a purpose built complex at Greenacre, near Bankstown in Sydney be only available to first home buyers.  Intended buyers will be required to sign a statutory declaration before a JP that they have never had previous home ownership, making a false declaration a criminal offence.

This complex will comprise forty-seven apartments and town houses and there will be an offering price limit of $ 650,000 for apartments and $ 789,000 for town houses.   This will take them well under the median price offering on housing stock in this city.

Not only is housing in Sydney grossly over priced, it is also shrinking in volume availability. The industry estimates that currently there are 19,000 homes in the hands of agents offering them for sale, and this is down from 27,000 at the same time last year.

Some psychologists will have misgivings about this plan.   There is a very real chance that it will concentrate people of a similar age group and a similar financial status in a grouping.  If so, then there will be a tendency for children of a similar age to add to that concentration, bringing together a uniformity that signals danger.

It is one of life's peculiarities that harmony is best achieved when groupings consist of a balance of young and old, with a mix of financial status and a wide variety of differing interests in sport, politics and religion.  Basically, that is the usual situation in most Australian suburbs and it is something that the Housing Commission has been careful to try and achieve in their allocation of public housing.   The plan of creating a whole suburb of welfare housing has been abandoned in favour of a mix of public and private housing to break that uniformity mould.

Fortunately, there is no plan to require buyers to hold ownership for a given period of time and the ever rising price structure in Sydney will probably quickly dilute this concentration mix.  It will be tempting to take a quick profit and move on to a bigger or better property with the added equity from that profit improving the buyers asset base.

Sydney and Melbourne have long suffered what some would call the " Ghetto  " situation.  As the migrant mix moves from country to country, there is a tendency for new arrivals to seek the security of living close to others from that same country and usually one suburb quickly becomes known for a concentration of that nationality.    So it was after the end of the second world war when many abandoned a war weary Europe for sunny Australia.   We quickly developed Italian, Greek and other European themed suburbs - and later a similar phenomenon happened at the end of the Vietnam war.

It will be interesting to see how this development at Greenacre  turns out and whether it becomes a trend duplicated across the city.  The other danger is that the standard of housing is designed to fit in with first home buyers budgets and falls short of the level of expectation that now exists.  Planning authorities would be advised to check carefully to see that size ratios are maintained and that fittings levels meet requirements.   We would not want to see first home buyer accommodation built  to a price - rather than to a standard.

Monday 29 June 2015

Diplomatic Immunity !

There are three thousand five hundred and sixty two diplomats and Consular officials in Australia - and they are immune from prosecution under the laws of this country.  The granting of "Diplomatic Immunity " is a protocol agreed together by world governments  for the protection of their official representatives at times when the relations between nations may be strained.   The land beneath an official embassy is considered to represent home turf and is immune from either entry or search by the police of the host nation.

There is a reciprocal requirement that diplomatic representatives will obey the laws of the country in which they are located, but should the police wish to interview them about any matter they have to first apply to the embassy involved for a "waiver " to temporarily set that immunity aside, and should they wish to lay a charge they would be required to make a second application - and both of these requests may be denied.

It is usual for an embassy to withdraw a diplomat who becomes involved in any contentious conflict.  Despite overwhelming evidence that person is free to go to an airport and leave the country under the terms of diplomatic immunity and this protection extends to any money owing.  A creditor is blocked from appealing to a court for restitution because the matter would first need a waiver from that embassy for prior permission to proceed.   Many countries are delinquent in paying traffic or parking fines imposed on embassy vehicles.

This matter of diplomatic immunity is a guise for espionage.  It is usual for some diplomat with an innocuous official title to be a member of the visiting country's security apparatus and tasked with ferreting out trade secrets and other information that may have military value.  If caught in embarrassing circumstances it is usual for them to be whisked away, back behind national borders where they are safe from further investigation.

The degree of cooperation is in direct ratio to the cordiality between the two countries involved.   Friendly countries usually require their diplomats to be meticulous in staying within local laws and promptly paying monies due, but belligerent regimes tend to hide behind the protocol and this can create hostility where road accidents involving excess alcohol are involved, and the diplomat simply walks away without being charged, leaving the victims to cope with their injuries without compensation.

During the years of the cold war it was usual for embassies to play a pivotal role in sheltering dissidents under threat in their home countries.  Those under threat of arrest were safe if they could reach the protection of a friendly embassy and some resided there for years - to the fury of their national government.   That ploy is still  used by Julian Assage and Edward Snowden who would both be arrested if they set foot on home turf.

The Australian embassy scene has been relatively free of "incidents " beyond the occasional "fender bender " with an embassy car, but older Australians will remember the dramatic events of April 1954, when Vladimir Petrov, third secretary of the Soviet embassy in Canberra defected and was spirited away into hiding by Australian spooks.  Petrov was a Colonel in the Russian KGB and he was prepared to spill the beans on Soviet espionage in Australia in exchange for safety here.

There was high drama when his wife - Evdokia - also a KGB agent - was being forced to return to Russia and was being escorted by armed Russian "escorts " on the plane journey.  When the aircraft made a fuelling stop in Darwin Evdokia Petrov managed to warn an air hostess that she wanted to stay in Australia and she was freed from her escorts in a fracas with Darwin police.   At that time, this whole affair was splashed across headlines - world wide.

It seems that these days the diplomatic situation in Australia is very civilized, but if you have the misfortune to get involved in a car accident with another car bearing diplomatic number plates -  you chance of getting speedy resolution depends on which world country is the owner of those plates !

Sunday 28 June 2015

The Bandit - and the Bank !

The Human Rights Commission has ordered the ANZ bank to apologise to a former armed robber - for not hiring him  !   Despite lying about his criminal record on his job application, a background check revealed his past serious offence that included assault and violence.

The HRC said the banks employment refusal constituted an exclusion made on the basis of his criminal record and "had the effect of nullifying or impairing his opportunity in employment ". The bank said  " that it didn't think it appropriate that a person convicted of violent armed robbery should work in a bank ".

What seems to have caused the HRC to make this extraordinary finding is the fact that the offence happened thirty-five years ago, and since then the former bandit has held regular employment with major Australian companies and has a number of glowing references.  It raises the question of whether a time frame limit should apply to past misdeeds and whether an employer has the right of refusal of employment on the basis of past crime.

In recent times Google has been ordered to delete past histories where these reveal events that people would prefer to "forget " !  It seems that instrumentality's such as the HRC are intruding into the right of employers to make a personal choice when they have a vacancy to fill.   A disappointed applicant can drag that employer before a government entity and plead for restitution - and sometimes the demand is for more than just an apology.   In many cases what is sought is the payment of damages.

Initially, outfits like the HRC were tasked with rectifying unfair work practices.  People who had been denied promotion because of their religion or their gender.  In particular, this applied to the public service generally and statutory organizations such as local councils that were employers of big numbers of people in a strictly tiered pyramid.  It opened an avenue of redress for those who otherwise lacked the power to question promotional decisions.

It seems that this  "third party  " decision questioning authority is creeping into the general commercial sphere.  In the " real world " - where making a profit decides whether a firm stays in business - hiring a new employee involves many factors not present in government employ.  An employer is looking for a person who can do the job required and will fit into the present workforce without discord and disharmony.  It usually comes down to personal choice selected from a number of applicants - and now the door seems open to those rejected to involve a distant authority to second guess that decision - and perhaps demand a different outcome.

We seem to be heading into a regime change where the right of a prospective employee to find work totally over rides the decisive choice of the person  tasked with filling that vacancy.  Many a successful company can attribute it's success to the skill of a manager who managed to put together a team of people who had the skills to do the job required - and the ability to work in harmony with one another.  Making that selection would be impossible to put on paper because it involved a variety of parameters, not the least of which would be intuition.  Such success can not be replicated by simply applying a formulae where the applicant whose history merely ticks the most boxes gets the job.

We are already seeing the implications of third parties having a say in employment decisions.  It has resulted in some people with paedophile convictions being cleared to again work with children and now a bank has been censored for turning away a former bank bandit looking for a job.  Does that mean that police recruitment will be forced to take in and train former drug pushers who wish to become uniformed officers ?   It certainly has dire implications for the spooks who work in our national security industry - if former affiliations are to be ignored !

No wonder manufacturing industry is in the doldrums and commerce is struggling.  We interfere with the right to hire and fire - at our financial peril.


Saturday 27 June 2015

Obeying the Law !

Long suffering motorists must have gained a degree of satisfaction this week as the police carried out Operation " Pedro " and launched a blitz on cyclists ignoring road rules.  While the police are quick to hand out a ticket that imposes both a heavy fine and the loss of demerit points to motorists for the slightest law infringement, they see cyclists riding through red lights and disobeying every rule in the book - and being completely ignored - by both traffic police and the Highway Patrol.

In a single day the cops handed out three hundred fines in the Sydney CBD for red light running, failing to wear a safety helmet, and riding on footpaths - and another three hundred cycling related infringement notices.  The problem with such traffic blitzes is that they run to a strict timetable - and once they are over the cyclists will revert to again breaking the law with impunity.

The police only book cyclists when there is pressure from above to make an example of a few culprits to burnish their policing image.  It is not a job they enjoy.  The fines are paltry - compared to those inflicted on motorists and then there is the identification problem.  It is an offence for a car driver not to be able to produce his or her license on demand, but cyclists have no number plate on their cycle, not do they have a need to provide any sort of valid identification.   If they give a false name and address, that fine will remain uncollected in the police archives forever.

It is an unquestionable fact that many motorists resent sharing the road with bicycles and often ignore their right to be on the same road. Cyclists do have a valid complaint that uncaring car drivers often expose them to needless danger, but common sense dictates that mixing very slow moving traffic on moderate to high speed limit roads is a recipe for disaster.  What really irks motorists is to drive on an 80 kph road which has a separate bike track running alongside it - and find cyclists in a bunch hogging what should be a road reserved for motoring traffic only.   Common sense dictates that where a bike track exists, that should be the only option available to cyclists.

For a long time, cyclists were barred from high speed arterial roads in New South Wales and then this law was incomprehensibly changed to allow cyclists to ride in a one metre wide bike lane beside traffic travelling at a legal 110 kph.   It is perfectly legal for family groups that include small children on their bikes to share the danger of cars and buses just an arm's length away.   This supposed "bike lane " is really the road shoulder and as such is often strewn with rocks and tree matter that can cause a bike to swerve wildly.   Fortunately, most cyclists have enough common sense to keep well clear of this arterial network.

The biggest danger is bikes in suburbia.  They are an ideal conveyance for a quick trip  to the shops or to take a breadwinner to the railway station and of necessity they have to share the roads with cars. In winter, those who commute to their jobs and cycle from the railway station to their homes often travel after dark - and few bikes seem to have any sort of lighting.  We do not tolerate cars without lights at night.  Surely the same conformity should apply to cycling.

The most widely encountered danger on suburban roads is the mix of kids on bikes.  Strict age limits apply to driving cars, but absolutely no such law applies to bikes and kids are incredible risk takers. It is not unusual see a bunch of kids on bikes weaving in and out of traffic in the school holidays.  A bike is a "must have " for most children and these days very low cost models are flowing out of China - and becoming a favourite gift for Christmas or a birthday.

Operation "Pedro " is welcome in bringing bike users into line with the law by issuing a few fines for bad behaviour, but what is needed is consistent law enforcement to drive home the message that safety is important - whatever means of transport is involved.   That will not occur until law breaches by cyclists results in the same police response as applies to motorists.

Friday 26 June 2015

Relationships !

A ripple of unease is running through the New South Wales police force with the news that a senior Inspector has been stood down from her duties because of her relationship with a member of a bikie gang.  The police are constantly at war with criminal elements in the bikie culture and the fact that one of their own is consorting with "the enemy " raises the spectre that police tactical plans may no longer be secure.

This comes at a time when New York is embroiled in a massive scandal that saw two murderers cut their way out of the Clinton Correctional Facility using tools smuggled in by a staff member.  Once again the incentive that caused this breach of trust - was romance.   The two men are still on the run and their female accomplice seems likely to spend years in a US prison once her case goes to trial.

It seems that romance is the Achillis heel of all manner of security situations.  Often it is the most unlikely pairing that does the most damage.  That ephemeral something that can not be clinically described - but is usually referred to as "love " is totally irrational and can lead to murder, betrayal of country and just about every crime imaginable.

What troubles those tasked with keeping the nation's secrets secure is that just about everybody on this planet is constantly creating or ending some sort of relationship with another person and keeping track of all this is impossible.  In the majority of cases relationships are not apparent to the casual observer because we have a tendency to shield them in privacy, probably because they cut across existing other relationships in at least their early stages.    The fact that often the motivational factor is "sex " is a reason for that secrecy.

It is almost impossible to separate  "love " and  "sex " and yet the two go hand in hand in deceit. When two people find that they are attracted to one another it usually - sooner or later - leads to a sexual relationship, and because of the mores of society that has long been something carefully hidden from others.   So exists the ever present temptation of an " affair " that roils many a marriage - and leads to divorce.

Sex has become a more open matter in recent decades and the guardianship of virginity is no longer the essential it once was - except in the Muslim world.  The "pill " changed all that back in the 1960's and despite a more open society old shibboleths still hold sway.  When people are still encumbered by an old and existing relationship all evidence of a new "love " is usually kept well out of sight.

The Australian parliament is debating the issue of scooping up all phone and Internet email traffic   and holding it for a number of years.  It is claimed that this is necessary to enable our security agencies to track terrorists planning attacks in this country.  It would also be very handy to look over the shoulders of those we employ to work in sensitive areas such as prison staffing and both the police and military.  Examining routine communications traffic could be very revealing and it could provide vital information on who is  "sleeping with the enemy "!

As always, this is a subject that cleaves the political division of "left ""and "right ".  On the one hand we have the right to privacy - and the right to associate with whom we please.   On the other, some jobs are so sensitive that those holding it's secrets need to be hermetically sealed off from the real world.

Sometimes those who hold the levers of power stray so far off what it just and ethical that we welcome the holder of secrets who "spill the beans "  and brings malfeasance into public view.  It all depends on whether you consider Julian Assange and Edward Snowden as villians - or heros  !




Thursday 25 June 2015

Lessons on Living !

This week two terrifying incidents drew attention to hidden dangers that most people would not recognise as posing a risk.  In the first, the parents of an eight day old newborn awoke to the child's screams to find the family dog savaging her face while she slept in a bassinet at the foot of their bed.

Paramedics were called and the child was rushed to the Children's Hospital and is expected to make a full recovery, but the parents are mystified as to why a normally very friendly dog that they have had since a small puppy would launch such an unprovoked attack.   The fate of the dog is as yet undecided.

There is a lesson here for all those bringing a newborn to a home which contains family pets.  Just like humans, animals are capable of jealousy.   Most likely that Malamute has been the centre of attention and treated as one of the family, and suddenly that attention is diverted to another living creature that quickly becomes a competitor.  Resentment builds in the dog's mind - leading to the natural canine instinct when threatened - an attack.

Experts warn that it is unwise to leave any child under the age of twelve alone with any animal.  The actions of both children and animals are unpredictable and we usually fail to understand what changed circumstances are having on the thought process of any animal involved.    This feeling of rejection caused when parents are doting on a newborn can have a similar jealousy affect on siblings. Jealousy is a powerful emotion - and leaving a small child alone with a brother or sister is unwise until the bonds of affection are fully formed.

The other incident that illustrates the tug of war between fashion and health saw a thirty-five year old woman lying paralysed on the ground, unable, to move her legs - and completely helpless until she was found and rushed to hospital.   The emergency room people cut off the skinny jeans she was wearing and she spent four days connected to a drip to try and save her kidneys from permanent damage.   This was assessed as a life or death situation.

Fashion is a demanding mistress !  Most women aim for svelte silhouette and a new type of stretch denim jeans promises to iron out the "bumps " and deliver just that.   This is now becoming high fashion and the danger comes from the decisions that women make when buying this new attire.  Many work to the maxim that "the tighter the better "" is best and buy several sizes below that recommended for their body size.   Squeezing into these constricts the blood flow to the legs, particularly when activities involved squatting or working with unusual postures.

The human body does not take kindly to having it's blood flow restricted.  As this woman found, it tends to shut down and left unattended it can deliver an early death.  Skinny jeans can be a useful fashion accessory, but reasonable care is needed to avoid extremes - and probably it would be unwise to wear them for long periods of time - nor where strenuous activities are involved.

Both of these incidents have delivered a warning that the wise will consider. Unfortunately, normal day to day decisions we make often have undertones of risk that are not immediately apparent when we make them.   How strange that hindsight always has 20-20 vision !


Wednesday 24 June 2015

GREXIT - The witching hour approaches !

The one thing that is obvious about the Greek economy is that this little country of over eleven million people has no hope of ever repaying it's  317 Billion Euro debt.   It's affairs are in a hopeless shambles with an economy paralysed with clientelism, hopeless public administration, comically bad regulations and an unreliable justice system.

June 30 is the make or break date.  In desperation Greece elected  Alexis Tsipras and his Syriza party on the promise of lifting the strangulation imposed by the EU in exchange for monetary bailouts. Tsipras is a truculent and aggressive man and he has butted heads with Angela Merkel and the rest of the EU hierarchy.  What he demands, the EU is refusing to give, but Grexit is feared because the flow-on effect could see the end of the Euro and even the possibility of the destruction of the EU market.

There is every chance that at the end of this month Greece will default on it's debts.  That is not an unusual outcome in world finance - in fact Argentina has made a habit of stiffing it's creditors and always seems to bounce back into the world community after a period of penance.

The big difference is that Greece is an EU member - and the EU is supposed to be an irrevocable union.  If Greece walks away or is turfed out for not paying it's debts that could lead to contagion - and spread to other vulnerable economies such as Portugal or Cyprus - or even Italy.

What we have here is simply a normal situation that happens to citizens of all countries in everyday life.  People go bankrupt when they amass debts that they can not pay.  A court examines their financial situation and takes charge of any assets they hold - and sell these to recoup money that is distributed to those owning the debt.  Eventually - usually a matter of years - the debtor is released  from bankruptcy and allowed to make a new start.

That is exactly what Greece needs now. It needs the freedom to revert to the drachma and devalue it to attract tourists and get it's economy in shape.  It is up to the Greek people to implement a government capable of sorting out the mess that pretends to be it's economy and sort out a tax regime that pays it's bills.  The Greek people are completley fed up with being managed by creditor nations and will cheerfully suffer the pain of having the necessary reforms thrust upon them - by the people they choose to hold office.   There is a possibility that might be the Communists or the other right wing side of politics - but that is a choice that is up to the Greek people.

For the EU it delivers an inescapable lesson.  The EU is unworkable with monetary union unless it's financial rules are enforceable.  It is simply an accident waiting to happen on a similar manner to what is facing Greece unless they put their house in order.   The worst thing that can happen is some sort of last minute compromise - that sees Greece get another bailout that further increases it's debt and staggers on with the same problems hanging over the head of it's people.   Bringing the crisis forward to another day - is not the answer !

Even the major countries in the EU are constantly breaking financial rules - and getting away with it. If the EU needs to contract to a smaller group of countries with compatible financial economies that would be preferable to the economic mess that is now in place.   The loss of the 317 billion Euros owed by Greece would be the price they have to pay for making the mistake of bailing out non performing economies.  With hindsight, it is obvious that the EU grew far too quickly - and that sheer size was a false objective that influenced thinking.

GREXIT might not be the disaster many people imagine.  Restoring the EU to a proper working basis will allow those struggling to meet square peg in round hole situations to escape and restore their economies - and when these are in proper order at some future time - the opportunity to regain membership of the EU would be a rewarding dividend !

Tuesday 23 June 2015

A Fading Dream !

It looks like New South Wales will bring in a $ 2.1 billion budget surplus for the 2014/15 year, up from a predicted $ 1.8 billion in previous estimates, and one of the biggest contributing factors will be the stamp duty levied on home sales.   In the past twenty years, this has moved upward by 749% as the median Sydney home price nears the one million mark.

For those at the bottom of the earnings pyramid home ownership is now out of the question.  The savings to accumulate a deposit are beyond their reach and they would have no hope of servicing the loan necessary to secure a home if by some miracle they got their foot on the first home buyers ladder.  Most accept that they are destined to pay rent for the rest of their lives.

What worries some economists is the attitudinal change occurring in those who do have the capacity to eventually become home owners.  In past generations life followed a very predictable course. Marriage - home ownership - children - were in the sights of young people and for the vast majority this was attainable.  It was often described as the "Australian dream  " !

It seems that for some that dream is fast turning into a nightmare !  Many are turning their backs on the austerity that home ownership will impose on their lifestyle during the long grind to accumulate a deposit - and the even longer grind to pay off that loan and settle all the debts for conveyancing and stamp duty that go with the purchase.   We live in an age of " instant gratification " .

The target of home ownership is fast being replaced by more tangible rewards.   Travel has become the objective of some while others see ownership of a top of the range car that turns heads as their new desire.  Others leave their future accommodation prospects dependent upon inheritance. Unfortunately for them, social engineering is heading in the opposite direction.

Pressure is mounting for the family home to be included in asset testing and with out ever extending longevity nursing home placement is requiring bigger deposits and bonds that usually require the sale of the family home.  Funds from that sale are then added to the asset test and this decreases the pension, requiring the retired to dip into their reserve for living expenses - leading to sharply shrinking estates when their life ends.

It seems inevitable that in the near future the demand for public housing will increase exponentially.  At present the waiting list can be as distant as ten years, but it could become usual for this to be factored in for lifestyle plans if people give up on home ownership, adopt a hedonistic pursuit of travel and high living, and then patiently wait till they top the list for public housing in later years - with the expectation that the rent will be assessed as a percentage of their income, which is usually a fraction of what is demanded in the private rental market.

Australians were known as a nation of home owners.  The price of an average house has distanced itself from most other commodities - and shows no sign of slowing down.  This is a world wide phenomenon that is accentuated in major cities and where those cities are the focus of migration. There is every chance that a decade or so from now the provision of public housing may be the biggest problem facing both Federal and state governments in this country.   The growing pool of those "unhoused  "  will deliver immense political pressure.

Theoretically, releasing more land for building sites could ease home prices but Australia is a destination sought by migrants and there seems no prospect of our population ceasing to grow.  Our economy is subjected to periodic recessions and during these prices drop, but it is unlikely that we will see a permanent decrease - and if one did occur it would be a financial catastrophe for many.

All three tiers of government had better get used to the idea that providing public housing for the masses will soon become a demand on which they will be judged !

Monday 22 June 2015

The Answer is - Competition !

The big four Australian banks are about to be hauled before a Senate Investigative Committee to investigate claims that the $2 billion a year cut in interest rates is not being passed on to consumers.  In particular, the high interest of credit card debt remains unchanged.

About the only people who love the banks are those lucky people who are their shareholders and perhaps our banking troubles resonate from a political decision taken and implemented back in 1991 - when the Hawke/Keating government decided that the government had no place in banking and hived off the Commonwealth bank by offering it to the public at just $ 5.40 a share.   Have a look at how much those shares are worth today ?

Remember the days when just about every street corner in a major city had a bank branch ?  One by one the plethora of banks that operated in those times became the victim of acquisitions and were merged into the operations of the big four, and we lost most of the "State " banks when they followed the example of this closing trend and went out of business.

The Commonwealth bank was the Sheriff of the banking world.  It had to answer for it's policies to whatever government held power in Canberra and the rest of the banking world didn't dare move without getting the nod for any policy change.  This Sheriff joined the bandit gang when it was privatised and that's when we saw a huge jump in fees and charges - and the banks began to report billion dollar profit margins.

We are now at the mercy of just four banking giants who have been forced to moderate ridiculous charges for paying a day late or similar minor errors, but still implement measures that gouge for what are really unsecured loans in the credit card sphere.  They deliberately make it difficult to change banks by refusing to move periodic payments from one account to another.

It seems that we can learn from our Kiwi cousins across the Tasman.   They too followed the Australian trend and murdered their competitive banking system by selling their government owned bank - and they too suffered similar consequences to the ones we are trying to fix.   They are now in the process of reversing that trend - and at the same time saving an ailing government instrumentality.

New Zealand is turning it's Post Office system into a bank and this will be named the " Kiwi Bank ". Not only will this recreate a business flow for those post offices that are falling victim to reducing letter movement but will provide much needed competition - that the major banks will ignore at their peril !

It is noticeable that the Australian post office system is gradually opening it's scope to a wider service sector.  It provides a welcome bill paying venue for those who distrust Internet banking, but until recently drawing cash from a bank account was limited to Commonwealth bank accounts only.   Today, that has been widened - across the entire banking sector and many other government agency services can be processed at any post office.

The big four banks are still closing branches and intend to force their customers to adopt electronic banking, but that does not suit the entire population spectrum - and not necessarily just older people. Reinventing post offices into service centres that include banking makes good common sense - and it would provide the competition our bandit banks need to keep their avarice in check.


Sunday 21 June 2015

The Mental Health Enigma !

This week a family holidaying here from Victoria were sitting at an outdoor setting of a cafe near Central rail station when a homeless man walked up and punched their eighteen month old daughter in the face as she sat in her stroller.  He ran off - chased by the father - and was later arrested by police.  The little girl received a bloody nose and was treated by Paramedics, but fortunately suffered no permanent damage.

The twenty-eight year old homeless man appeared before a magistrate and it was learned that he suffers a severe mental disorder.  On May 5 he became an involuntary patient admitted to St Vincents mental health unit - and on May 11 he was given unescorted day leave - from which he never returned.   The magistrate ordered that he undergo a further mental health assessment and he was returned to St Vincents hospital.

The unanswered question is - where do we go from here ?   It seems that mental health is a revolving door treatment.  No doubt the doctors will determine a drug regimen that will at least ensure a partial return to normal and once again the patient will either be discharged or will walk out the door and refuse further treatment.  We simply lack the facilities for long term treatment of our mentally ill.

We have just had a chilling example of what is possible when the mentally ill go to extremes.  There seems no doubt that the man who took customers of the Lindt cafe in Martin Place hostage and brought about the death of two people in the siege that followed was suffering a mental illness. The problem is that it is almost impossible to to spot that dividing line between "harmless " and  " homicidal  " - and after the event we always have 20-20 vision !

Now just suppose that the Lindt cafe gunman had survived the siege and no deaths had occurred.  Without doubt he would have faced court and been sentenced to a long term in a prison cell.  That seems to be the only answer available to the long term mentally ill.  We wait until they do something extreme and then we use the prison system as our defacto mental hospital.

It is fairly easy to predict what will happen with that homeless man who irrationally walked up and punched a child in the face.  He will again be an involuntary patient for a few days until a drug regimen is determined and he responds.  When that happens, he will probably again be allowed unescorted day leave and the hospital will lose control.  He will probably disappear amongst those living on the streets and he will probably discontinue taking whatever medicine that has been prescribed.  There is an obvious limit to how long a public hospital can have a mentally ill person taking up one of their desperately needed beds.

The frightening thing is that there are vast numbers of people roaming the community with varying degrees of mental illness.   We tend to treat them with disdain.  Most suburbs have their resident " Weirdo   " which children are told to avoid.  Bondi has a family that collects rubbish and stacks it in and around their home, causing a horrible stink and reducing the appeal of nearby properties - but are otherwise harmless.  In some cases, mental illness is labelled "eccentricity "  and the person afflicted is seen a a " character  ".  Perhaps even treated with good humour.

A century ago we had "lunatic asylums " for the mentally ill but these fell into disfavour.  They were closed and it became the custom to treat mental disease in the community.  There were promises of long term treatment facilities, but these never eventuated.   The cost factor was always the issue inhibiting their provision - and that is unlikely to change.

So !    We have a young man who shows aggression by punching an innocent child in the face and there is every prospect that he will soon be again roaming the community.  Hopefully, the medics at St Vincents hospital may perform a miracle and give him a cure, but there is also a good chance that he will again grace the evening news and appear in our newspapers.

The next time he comes to public attention it is likely that officialdom will go to the next level of mental health control - and he will serve a period of incarceration.  There is little provision of mental health management in our prison system, but at least it solves the "out of sight and out of mind  " problem.

Such is the enigma of mental health treatment  !

Saturday 20 June 2015

That " Hippocratic Oath " !

There is a puzzling question that will trouble many Australians with the news that a closed court in Adelaide has issued an arrest warrant for a young Australian doctor who is providing his medical skills to Islamic State in Syria.   By so doing he has broken a law that forbids "membership of a terrorist organization " and which can impose a prison sentence upon conviction of between three and twenty-five years, but first he must return to Australia to face these charges.

When he practised medicine in Australia he was known as Abu Yousef Al-Australie but he now calls himself Tareq Badawi Kamleh and he has appeared in an IS promotional video in which he professes that he is providing medical services as the basis for doing his "Jihad for Islam  " !

Taking up arms and fighting for a terrorist organization is certainly the aim of legislation that may see offenders stripped of their Australian nationality, but there seems to be a conflict between this law and the "Hippocratic Oath " that is required by the medical profession - and which serves the neutrality of "Doctors without Borders " when they minister to the wounded on both sides of conflicts.

It raises an uncomfortable comparison with the "Conscientious Objector  " claims that many people used to avoid active military service during previous wars, but which in many cases allowed them to serve as stretcher bearers.    That Hippocratic Oath that doctors take is a promise to "do no harm " - and can be widely interpreted.   If this doctor refuses to pick up a gun and in any way take part in any form of combat he could be said to be heeding that oath.  The provision of medical help to the wounded seems an obligation that no doctor could ethically refuse.

During the wars in which Australia has been involved it would be unthinkable that our medics would refuse help to enemy wounded taken prisoner.  Some could argue that there is a vast difference between a declared war between countries and what others may describe as a tribal uprising to unseat a government and force a different religion on captured people, but the humanitarian aspect is unchanged.  Conflict results in both military and civilian casualties and if medical help is available that Hippocratic oath demands that help be given.

That is the principle behind both the Red Cross and the Red Crescent  and in more recent times they have been joined by Doctors without Borders in providing humanitarian services across conflict lines.
It would be unthinkable to start prosecuting people from any of these three movements for  "giving aid to the enemy " or accusing them of "becoming a member of a terrorist organization ".   Where this young Australian doctor seems to have crossed a line is his participation in a propaganda video extolling his inclusion in Jihad by contributing his medical skills.

If and when he ever finds himself under Australian jurisdiction we can be certain that an interesting court case will eventuate if prosecution proceeds.  There is certainly a vast gap between radicalized young men who willingly join an organization that ignores international law on the treatment of prisoners and engages in both the slave trade and wilful destruction of public amenities, and a medical professional who strictly limits his activities to treating the wounded.

It will also hang a question mark over the matter of preventing those joining Jihad in Syria and Iraq from returning to Australia.   Many will think that if this young doctor believes he has done no wrong he should have the opportunity to go before an Australian court and plead his innocence.  To prevent his return is a form of guilt by decree.  It runs contrary to the requirement that guilt be proved before punishment is awarded as the basis of law in this country.

This seems to be a question that will ultimately be settled by Australia's High Court !

Friday 19 June 2015

The NSW Police Farce !

This week the Police Integrity Commission ( PIC ) issued a finding that cleared Commissioner Andrew Scipione and Deputy Commissioner Nick Kaldos of allegations that they had leaked information to a former police officer.   This lengthy investigation by the PIC had dragged on for over twelve months and was considered unnecessary by most people - because it had already been investigated by the Ombudsman with a similar finding.

The elephant in the room is clearly the issue that awaits resolution.   Over a decade earlier a tactical battle took place within the upper echelons of the police establishment to manoeuvre for selection to be the next police commissioner.   False papers were put before a judge who signed off on search warrants which were clandestinely applied to over a hundred active police officers and resulted in their homes and offices being bugged with recording devices.

It was pure character assassination.  Every minor decision made in field work was under question and the pressure on each individual officer was enormous.  It led to nervous breakdowns and at least one suicide.  This search for evidence that did not exist included having a "dirty cop  " wear a wire at a social event  to try and extract evidence.

Obviously, this witch hunt had an originator and that person deserves to be both named and punished.  So far, that has not happened.  There has been an enquiry which revealed most of the actions that took place, but strangely there was no action forthcoming.  The whole matter was flick passed to a further enquiry by the Ombudsman and now that officer is going to retire without completing his enquiry and bringing down a finding.  It will simply pass to his successor - who may decide to start again from scratch !

Now it has been decided that the retirement of the present Police Commissioner will be delayed and he will stay in the job indefinitely, because the very people who reasonably should succeed him are deeply involved in this police bugging scandal.  It seems that the tactic in place is to hold endless enquiries that never actually reach a conclusion and then try and cover up attributing blame by the sheer passage of time.

It would be hilarious - if it wasn't tearing apart the logical function of our police service  !  How can we expect the men and women who serve on our police force to respect a service which can not bring itself to clear up an act of criminality at the very top of the command structure ?    The only possible conclusion is that our police force is split into opposing factions - and that deciding this matter will bring those factions into open warfare.

Strangely, both sides of politics seem to be tippy toeing through a potential minefield.  Nobody seems to be too keen to drag this to a conclusion and perhaps there is a fear that the losing side will spill the beans on a lot of dirty little secrets that the police have helped to cover up when both sides of politics have held office.

It seems that the inner sanctum of the police hierarchy is not available for public scrutiny !

Thursday 18 June 2015

"Fire Trap " Safety Issues !

The inquest into a fire death makes chilling reading.  Two young Asian women were trapped in a fifth floor apartment when fire broke out on it's verandah.  Flames and thick smoke drove them into a bedroom and when the fire advanced they were forced to climb out the window and hang onto the frame - with a terrifying drop to the pavement below their only option.

Connie Zhang died from that impact and Yinuo Jang is permanently crippled and will spend the rest of her life in a wheelchair.  The inquest heard that this almost new building simply did not meet the relevant laws on fire safety - and the apartment they shared had an extra bedroom illegally constructed in a hived off portion of the main living room.   What is even more alarming, it seems that this is not unusual and that there are perhaps hundreds of thousands of similar fire traps awaiting victims in Australia.

The unit's landlord gave evidence that he constructed that extra bedroom so that he could charge more for rental and permission was not sought from either the body corporate or the relevant local council.  It is perhaps symptomatic of the price elevation of houses and units in Sydney that owners are resorting to all manner of illegality to try and squeeze a few extra dollars from their investment.  Councils are uncovering evidence of homes and units being converted into defacto boarding houses with beds crammed into every room and vast numbers of tenants expected to share a single common kitchen and bathroom.

We hear a lot about the difficulty first home buyers have in getting into the market and there is pressure to outlaw negative gearing to stop homes becoming an investment option for those on high salaries, but tinkering with the home finance market would have the unintended consequence of reducing properties available for rental - and we could easily drive rentals out of reach of ordinary people.

It is easy to forget that all those clamouring to become first home buyers are usually living in rented premises and if a law change makes investment housing unattractive it would lead to a sharp decrease in rental stock - and when shortages occur - the rental price rises accordingly.   We could see many potential first home buyers shut out of both the ownership and the rental market entirely.

This fire inquest raises the knotty problem to both the government and councils of exercising control over the quality of what is being offered to the renting public.  As things stand, there is little chance of an illegal bedroom being detected or a unit being turned into what is really a dormitory unless the number of people coming and going - and the parking of cars in the street - cause offense to neighbours that leads to a complaint.

The Real Estate industry is probably the filter necessary to ensure rental quality, but if tough conditions apply owners of illicit flats would probably simply opt for private rental and avoid agents.  It seems to be unclear exactly what powers are in the hands of councils when it comes to inspections and in many cases privacy laws come into conflict with gaining access.  It would be easy to require a council inspection and approval of all changes of tenant but most likely councils would impose a hefty charge - and that would impact on both the bond and rent demanded to offset the added cost inflicted on the building owner.

The fact that someone died and that death was probably attributable to building modifications preventing escape brings the issue of altered rental properties to the fore.  Most likely the coroner will make a finding and it will pass to a committee to enquire into possible actions.  In reality, little will  change.   This is an issue that had been shoved back into the "too hard " basket by successive governments over a long period of time.

Cleaning up the rental mess will rock too many boats.  Fortunately, an actual death is so rare that it is statistically irrelevant !

Wednesday 17 June 2015

Armed - and Dangerous !

Parents of children attending a western Sydney High school are alarmed to receive a letter from the principal advising that the school is holding a knife amnesty and urging support to convince those carrying knives for their own protection to hand them in.  It seems that this all stemmed from a 2011 fight between two students which resulted in knife wounds that saw the school go into lockdown and a strong police presence.   From there a creeping anarchy enveloped the play area and fires were being lit in the school grounds and knives were both carried and traded as Granville Boy's High developed into an armed camp.

Another sign of the maelstrom of mixed cultures that is western Sydney is the practice of locking away those students who are too "feral " to be handled by teachers into a confined area - where they are left unattended for the entire school day.  That raises the question of what alternatives are available to schools when they encounter pupils who aggressively refuse to conform to the learning process and actively disrupt classes  and rebel against teaching staff  ?

It seems that the ultimate weapon is suspension for a period of time.  The option of permanently expelling a troublesome student comes into conflict with the law that requires all those of school age to be educated and a host of well meaning restrictions that shield minors from the punishments that apply to adult offenders.   Sadly, a mere handful of aggressive misfits can totally destroy the ability of a school to churn out educated young people capable of getting a job and enjoying life - and they seem safe from any sort of retribution.

Over the years a variety of schemes have been tried - and failed.  One of these was to establish a sort of  "boot camp " special school for delinquents and try to get them into shape with a tough teaching regime.  Mostly, this was seen as a challenge by those selected and their behaviour became so severe that the scheme had to be abandoned on safety grounds.   It is impossible to educate those who are determined not to conform.

For education planners that has been put in the "too hard  basket for many years.  The fact that it encounters contrasting laws makes it insoluble, but we have entered a new age and today those that lack an acceptable education standard when they leave school are condemned to a life of penury and hardship.   We are fast reaching the stage where labouring jobs for the uneducated just cease to exist.

It is all very well to cite the laws that require us to provide an education for all and at the same time allow a small minority to disrupt and prevent the majority from attaining that benefit.   This will not be achieved by herding ferals into schools they refuse to attend and allowing them to wreak havoc on those who have the misfortune to be allocated that same place of learning.

It is probably unacceptable to simply withdraw education facilities entirely, but we need to accept that there are some who will not fit into a normal curriculum  and there is no purpose in insisting that they attend a normal school.  It might be better to change course and accept that some may be more suitable for practical skills.   Perhaps a return to teaching rudimentary skills such as welding and carpentry - or the wide field of agriculture.  At least those seeking a job would have some sort of  attraction to offer a potential employer.

As this knife amnesty illustrates, the presence of a disruptive minority usually infects others with a need for self preservation.   Once the need to have a knife for defence becomes the norm - the herd instinct kicks in and it becomes prevalent - and with that the play of hot tempers can lead to tragedy.

If the present laws are preventing change - then it is time to change the law !

Tuesday 16 June 2015

Basic Instincts !

Anne Aly, Associate Professor at Curtin University has drawn flak with her remark that Tony Abbott may be helping fuel radicalization by "targeting Muslims ".   This deradicalization expert then went on to say there "might be something nice about ISIS that these people are attracted to. " !

That depends on what sort of image "nice  " conjours up in the minds of those streaming into the Middle East and flocking to join IS.  There seems no doubt that the leaders of the various Jihadist regimes that have set out to create a Muslim caliphate and wage war on the west are cluey people who are following a recruitment plan that is as old as time itself.

In the minds of many impressionable young men, Jihad is inextricably linked to that greatest of all motivational factors - sex !   Whether it is IS in Syria or Boko Haram in Africa this Jihad makes a point of illustrating the fate of countless young women swept up as they conquer new territories.  They make no bones about their plans for the disposition of such women.  The prettier ones will be distributed to their fighters as "wives " - and their laws are lax on how many wives a fighter may collect and how easily they can be discarded when the novelty wears off.

We in the west claim to be more civilized than our Middle Eastern neighbours, but deep in the hearts of many young people there remains an urge to dominate women. That manifests itself in the violence that mars many relationships and the sense of  "ownership" that comes to the fore when relationships come apart.

The news briefs coming from IS are carefully constructed with recruitment in mind.   They exult in the careless manner in which they treat captured women and their cameramen are careful to select appealing subjects to parade before their lens - and lure recruits with that "this can be yours  " motif. No doubt the mix of adventure and the sense of power of waving a gun at cowed people has appeal but sex is such a huge motivating factor in everything from selling cars to the choice of foods we eat that it is fast becoming the driving force behind Jihad recruitment.

Sheer brutality appeals to the minds of those thuggish young men who drink to excess and assault strangers at random.  They see giving up the booze amply compensated by the power to decapitate complete strangers - because they choose to do so.  Converting to Islam is seen as a temporary inconvenience to enable them to seek treasure, indulge their domination of others - and of course - freely subjugate women and demand sex as their lawful right.

Rushing overseas to join IS has become a stampede because IS is seen as winning the battle - and nothing excites support like the illusion of victory.  When the Iraqi army fled before a numerically smaller attacking force it not only delivered a huge swag of military equipment, it cemented IS as "unstoppable  " in the minds of the impressionable.   That flow of recruits waxes and wanes in direct contrast to the news flowing from the Middle East and Africa.

Of course, fighting a Jihad is risky business.  Some Jihadists get killed, but immature minds always  conclude that only happens to other people - and not to them.    There is every chance that the deluge of IS support flooding Facebook and Twitter originates  from a hard core of Australian based supporters who have no intention of risky their necks in any sort of battle and have been specially tasked with keeping lurid stories flowing to maintain the volunteer stream.

That is almost impossible to stop.  The clever people behind IS have a well oiled media department working in their favour and they are flooding receptive western audiences with propaganda.  We would be well advised to reply in kind.  Many of these volunteers are now disillusioned and desperately want to return to Australia - and that can earn them a death sentence from their IS masters.   Perhaps we should be a little less squeamish about showing the rotting bodies of  volunteers who were given degrading and unpleasant tasks - and not provided with an unending supply of slave women - and who faced summary execution when their enthusiasm faded.

The compulsion to join IS will be directly linked to their success on the battlefield.   When the glory diminishes - so will the flow of those joining their ranks !

Monday 15 June 2015

The " Skunk " Option !

Skunks are not an animal native to Australia and they are generally feared in the parts of America that they inhabit.  Residents warn visitors to never startle a Skunk because they have an unusual defence mechanism that delivers a very unpleasant outcome.  Nature has endowed the Skunk with glands at it's rear end which allow it to stream an odorous fluid with great accuracy - and it's stench is almost unbelievable.  Both body and clothing coming into contact with this fluid retain this unpleasant smell for days - and there is no way to remove it other than the natural attrition of time.

We live in an age where science is probing nature to develop new products that they can evolve from the basic structures that exist on this planet and it seems that Israeli scientists have managed to recreate the formulae that Skunks use in their formidable defence system.  This has been added to the mix of water used in water cannons that regularly spray Palestinian protesters in disputed areas of territory.

The smell has been described as a mix between raw sewage and the rotting bodies of animals, and any Australian who has experienced the smell of roadkill on country roads on a hot summers day will know exactly what that smells like.   This chemical is non toxic and there have been no measureable side effects, hence it has been cleared for use by the Israeli civil authorities.  Now police forces in a number of countries are showing interest.

This opens up a whole new ball game when it comes to crowd control.  Becoming so contaminated delivers the prospect of financial loss.  Many claim that clothing never completely loses the offensive smell and the only real option is to totally discard it.  Then there is the problem of whether an offensive body smell can coexist in a work environment  ?   Certainly anyone working on food preparation and serving would have a problem, and those that work in an office or in public buildings might find that sanctions apply.

Of course, that is what has such a great appeal to civilian authorities considering it's use.  The objective is to stop people congregating and protesting some measure and the use of water cannon that delivers a lasting consequence is likely to reduce attendances.  That completely ignores the right of people to gather and demonstrate, and brands all such gatherings as both violent and illegal.  It extinguishes the right to peacefully protest !

No doubt the civil authorities would claim that it would only be used  when a public riot had got completely out of hand and the alternatives involved physical force and possible injury.  We already see the overspray that is usual when a small hard core of protesters resort to violence and the authorities become heavy handed in their response.   The residual smell could actually serve two purposes.  It could prove that any individual was actually present at the riot, and it could be used in court to prove that an innocent bystander suffered financial loss and humiliation as a result of excessive police actions.

From a military point of view, few new weapons systems fail to find their way onto the battlefields that exist across the world.  Poison gas was a horror in the first world war, and it was banished until recent events have seen various chemical weapons reappear on civilian targets. Governments would be well advised to think long and hard before allowing a "Skunk" spray to enter the police arsenal  !

Sunday 14 June 2015

Keep It Simple - Stupid !

Sydney's housing shortage is not new.   Way back in the 1950's the world saw the answer to the problem in the "Vertical village " concept, and the Housing Commission built six massive towers on the edge of the suburb of Redfern.   They were named Cook, Matavai. Solander, Marton and Banks - and they were designated "public housing " !

Hopes were high that this was the answer to big city living.   The apartments were modern and the views encompassed both the cityscape and in the distance Botany Bay. A railway station was nearby and they seemed just ideal for those who wished a short commute to their jobs in the city CBD.

Unfortunately there is a certain inevitability of disharmony when you pack people tightly together in congested living space.  A few addicted to drugs began to prey on their neighbours.  The over use of alcohol saw doors kicked in and people assaulted.  Vandalism to the lifts caused misery when residents were forced to use the stairs to access their apartments in these twenty-nine storey buildings.  Marital discord saw women bashed and these tower blocks were no place for little kids allowed to roam without supervision.   They quickly became a "no go "" area for the police - and demands for a solution were raised in parliament.

Ideas ranged from complete demolition to plans to refurnish and create a mix of public and private housing in the hope that such a mix would improve living standards and introduce a degree of accountability.  One of the main problems was the intrusion of privacy laws and the court appeals processes which made removal of drug dealers and alcoholics almost impossible.  An atmosphere of fear stalked these housing blocks and yet the procedures in place required affronted residents to front a tribunal and state their problems with neighbours - and then face the consequences when those very same people wreaked their revenge.   A code of silence prevailed.

Many years ago someone suggested that the solution to most problems was to apply the KISS formulae - which was  " Keep it simple - Stupid  !  "   What was being suggested for these tower blocks was convoluted and impractical.  Many suggested solutions were unacceptable to residents and others could never be implemented because they would infringe on many laws intended to guard the rights and privacy of ordinary people.

It seems that someone did finally get it right - and it also seems that this KISS formulae was at least a partial answer.    Each of these six tower blocks now have "Concierges " at their entrances, although the Housing Commission prefers the term " Security  ".   Public behaviour has improved - almost out of sight of what prevailed before this system was implemented.

It is not exactly pretty  !  These concieges are big, formidable men and they demand to know who is entering the building, what is their business and who they want to visit - and they are not the sort you would choose to pick an argument with.   There is also a visitors book - and they may insist on seeing ID and having a visitor " sign in " to maintain a public record.

It is almost a repeat of the "Bouncer ""system employed at Sydney's notorious Kings Cross to police entry into nightclubs - and which in tandem with lock-out laws has cleaned up the Cross.   Low life's now think twice before they approach the Redfern tower blocks and residents have added safety by knowing that undesireables are no longer free to roam the building.

It is not the complete answer - but at least it is a chink of light at the end of a very long tunnel  !

Saturday 13 June 2015

The Military stirs again in Japan !

When Japan's surrender brought the second world war to a close the American occupation under General Douglas MacArthur imposed a new constitution which "renounced war as a means of settling disputes " and set Japan on a pacifist course.   As a result, Japan has been spared the huge costs of defence spending and it has nestled gracefully under the American nuclear umbrella.

Chinese claims to sovereignty over the South China sea has been rocking the pacifist boat and Japanese alarm forced President Obama to specifically include disputed shoals and islands in the defence agreement between the two countries.  Despite this, many senior Japanese ministers doubt that America would go to war in Japan's defence and a new lobby group is pressing for the constitution to be amended to restore Japan to it's  " true, original characteristics  ".   Japan wants to rearm  !

This lobby group is named "Nippon Kaigi " which simply means "Japan Conference " but it's membership is powerful.  It's last chairman was a former Chief Justice and it has the support of at least a third of Japan's parliamentary members and that includes many who serve in Shinzo Abe's cabinet - and it claims the blessing of the prime minister.

The ordinary men and women of Japan have embraced this Pacifist constitution and it is expected that they will resist such a change, but the manner in which it is being suggested is alarming western nations. There is pressure to rewrite history to delete all mention of Japan's war crimes and instead applaud the invasion of Pacific Ocean countries as the liberation of East Asia from western colonialism and the formation of a "co-prosperity zone ". Shinzo Abe's visits to the Yasukuni shrine - which holds Japans war dead and includes executed war criminals - riles countries that suffered during occupation in the war and Japan is now retreating from admissions that it forced " comfort women  " to serve in brothels used by it's military forces.

It probably is time that Japan resumed a normal role in the world community and it should shoulder it's military responsibility for joint defence, but the manner in which it seeks to shed it's past is disturbing.  The fact that Nippon Kaigi has over thirty-eight thousand fee paying adherents from amongst the ranks of the powerful ensures that it's vision will probably prevail against the wishes of the general population.    This contrasts sharply with the attitude of the other second world war aggressor - Nazi Germany.

Germany has gone to great lengths to atone for it's Nazi past.  To dispute the Holocaust risks a long term in a prison.  Museums and exhibitions lay the war years past bare for all to see and Germany was a founding nation of the EU which sought to bind the countries of Europe into an ever closer association - to remove the spectre of future armed conflicts.  Germany has powerful armed forces but has been reluctant to come to the fore in world actions that have been endorsed by the United Nations.  Germany is certainly the most powerful industrial country in Europe and it's economy eclipses all others - and yet it clings to a reduced political role within the European community.

Japan had a period of prosperity when it led the world in cars and electronics for some years but it's economy has stagnated.   It is suffering "deflation " and rewards it's workers on the basis of "time served  ""rather than " results achieved  ".   It has failed to draw women productively into it's workforce and it's company boardrooms are awash with male, elderly, inward looking directors who are risk adverse and welded to an outdated company structure.

The problem is that the rise of militarism in Japan will certainly spark a new arms race in the region. There is the risk of conflict with China - and as China has nuclear weapons there is every chance that such acquisition will eventually be also on the Japanese agenda.  It is the aim of Nippon Kaigi to restore the Emperor to his former god like status and engender a new form of nationalism with the Emperor as the head of the nation.

A time to remember a very old maxim.   Those that fail to learn from history - are destined to repeat the same mistakes !

Friday 12 June 2015

Killing the Goose ?

It seems almost unbelievable, but there seems a real chance that the sport of Greyhound racing may be banned in New South Wales if a special enquiry headed by a former Justice of the High Court delivers an unfavourable finding.   All this was sparked when investigate journalists aired a report into the dog racing industry on the ABC's programme, Four Corners.

Animal lovers were horrified when footage clearly showed greyhounds being "blooded " as a way of increasing their race excitement.  Live bait - often comprising cats, rabbits or other small animals was attached in training to the lure which the dogs chase and they were deliberately  allowed to catch it and tear the animals to pieces.

The reaction was both prompt and furious.  The entire Greyhound Racing Board was sacked and ten leading trainers were suspended, and this independent enquiry was given the power to address animal welfare and self regulation concerns.   Animal welfare proponents are calling for a complete ban on Greyhound racing and the end of this sport.

Few would disagree that there is a need to crack down heavily on this form of abysmal animal cruelty and a need exists to regulate training methods, but to close down an entire industry because of the actions of a handful of trainers seems a huge over reaction.   Greyhound racing directly employs 2,700 people and a further 7,000 are the owners of racing dogs who have direct interest in their training programmes.   Each year $ 1.1 billion is wagered on Greyhound racing and this delivers $ 335 million in tax to state coffers.   Racing takes place at several purpose built Greyhound racing venues across this state.

Those same animal welfare people are agitating for the banning of steeplechase racing in the horse racing world and if they had their way the entire horse racing industry would cease. Steeplechase events are no longer run in most states and it is agreed that jumps increase the risk of falls for both horses and riders.  Overseas, agitators regularly try to disrupt the English Grand National as this historic race is run before huge crowds.

This animal welfare movement seems to attract fanatics.  From the time hunter gatherers discovered the benefits of farming animals have been part of the agricultural scene and now there is pressure to consider them another form of the human race, to be treated in the same way as people.  It should be noted that many animal rights crusaders are vegetarian and their aim is to remove all forms of meat from the food chain.   They would like to see  the closing of all abattoirs because the killing process causes animal distress.  The fact that half the world's children are undernourished is ignored in their quest to elevate animal rights ahead of the needs of humanity.

Hopefully, the new board of Greyhound Racing New South Wales ( GRNSW ) will crack down hard on shameful training practices and regulate this industry.  The "blooding " of racing dogs belongs in a far distant age and has no place in a modern industry - and that is exactly what this well patronised sport delivers in New South Wales.  The greatest benefit likely to emerge from this enquiry is putting in place the oversight that ensures that Greyhound racing is squeaky clean all the way from the breeding of pups, through the race training regimen - to the spectacle that draws crowds.

Thursday 11 June 2015

Ending Negative Gearing ?

A lot of people don't understand "Negative Gearing " and there is pressure building in the Australian parliament for it to be banned.  It certainly has delivered immense profits to some people when applied to the rapid price rises of Sydney and Melbourne housing, but it also contributes greatly to the supply of homes available for tenancy.  It's removal could have severe " unintended  consequences  " !

Negative Gearing is a form of financial leverage where someone borrows money to invest and the gross income generated by that investment is less than the cost of owning and managing the investment.  This loss is then tax deductible and can be claimed against other forms of income the investor may be receiving.

So if that investment is a house, the interest paid on the mortgage may be more than the rent obtained from a tenant, so the owner can claim that loss against his other income to lower the tax rate he must pay.  Of course, when he sells that house any profit against the original purchase price will be subjected to capital gains tax.

The abnormality that is drawing attention to negative gearing is the bubble that has been ongoing for decades with house prices.  In prices rise sharply - year after year - the owner of any house has an ever increasing asset that is delivering wealth far in excess of most other forms of investment, and some of that wealth is being garnered at the expense of the tax man.

Of course the loser is the first home buyer denied getting on the real estate ladder because of ever rising prices, but it should be remembered that the vast majority of negative geared properties are not the home of the owner.  To become a tax deduction they require a tenancy to balance the cost of acquisition against the rent obtained - and this goes a long way in ensuring that rental housing meets the needs of our ever growing population.

Economists would do well to understand the change that removal of negative gearing would have on the availability of rental housing if it ceased to be a tax deduction. There is also the possibility of a market reversal.  Should this house pricing bubble burst - as happened back in 2008 -  some investors may find themselves owing more than their property would bring in a forced  sale.  There are no guarantees when market forces occur.  It would indeed be a Pyrrhic victory if we banned negative gearing to make housing available to first home buyers - and at the same time imposed an impossible drought on those who need to find a rental property to survive in Sydney and Melbourne.

Perhaps a greater impediment to first home buyers is a trend emerging out of China.  A vast middle class is emerging with money to spend on travel - and the wise in investing, and the rate offering on bond purchases and fixed deposits is minimal.    Savvy financial advisers are suggesting a better option is to invest in western world housing, but in the majority of cases this is not being offered for rental.   Oriental thinking differs from that of the western world and the intent of many Chinese is simply to "park their money " in the safety of real estate and ride the roller coaster of ever increasing home prices.   This practice actually reduces the stock of homes available for rent and further fuels price appreciation.

The government is threatening to crack down on foreign home purchases that ignore laws that restrict sales to the newly built segment but it is obvious that all housing stock is being promoted as available to foreigners.  Much advertising is specifically presented in Mandarin and ignores English.  A period of amnesty is offered for illegals to come clean and restore their properties to legality, but it is likely that this trade will be driven underground and be placed in the hands of nominees.

Like all law changes, those demanding the end of negative gearing would do well to think long and hard about exactly what they wish for !


Wednesday 10 June 2015

Turkey Decides !

When the first world war ended and the Ottoman Empire imploded, Turkey's leader - Kemal Ataturk set the country on a new course.  He banned the wearing of a hat called the Fez as demeaning and decreed that Turkey would become a secular democratic republic that would integrate with Europe.

Most Turks are Sunni Muslims and whenever it's parliament strayed off course the army was quick to intervene.  Military coups reverted to civilian rule on several occasions and one of this areas problems is the presence of fifteen million Kurds living where Turkey, Syria and Iraq's borders meet and who demand their own homeland.  This has resulted in a civil war that has roiled Turkey for decades.

In more recent times Recep Tayyip Erdogan and his Justice and Development ( AP ) party emerged and won leadership with Erdogan serving as prime minister, before moving to the ceremonial post of president.  At first he was hailed as a moderniser, but when the event known as the "Spring " came to the Middle East he showed a tendency to side with the faction known as Islamic State which was carving a bloody path through Syria and Iraq.

It alarmed many secular Turks when IS attacked Kobane on the other side of the Turkish border and Erdogan allowed freedom fighters to cross to join IS but actively prevented Kurds from crossing to reinforce the defenders of Kobane.  The leader of the Kurds - Abdullah Ocalan - is in a Turkish prison but a cease fire is in place with his forces and integration is under discussion with the main stumbling block the degree of punishment for those who committed war crimes on both sides during this civil war.

Erdogan has imposed authoritarian tendencies in recent times.   He has imposed savage bans on the media and Turkey has large numbers of imprisoned journalists whose main crime seems to have been criticism of the state.  When the AP party and his own family were accused of massive corruption he simply fired the police, prosecutors and judges who were investigating and replaced them with stooges prepared to do his bidding - and shut down the investigation.

At this months election it was evident that Erdogan hoped to win enough seats to change the constitution of the country to implement a government where the president held authoritative power. If he gained  330 seats in the new parliament he could achieve this with a referendum, but if he managed to win 367 seats he could implement such a constitutional change without the need to take it to a referendum vote.   This was indeed a critical election for Turkey.

The result was a crushing blow to the man who had hoped to gain dictatorial power.  The vote of the people removed the ability of Erdogan and his AP party to hold a majority and decreed that it would need to form a coalition with other parties to rule.   More importantly, under Turkish electoral law parties need to achieve ten percent of the overall vote to gain seats in the house - and the Kurds achieved that for the first time and will now sit in the Turkish parliament.

It is evident that the Turkish voters did not like the way Erdogan was heading - and acted accordingly. Turkey is determined to maintain it's secular constitution and negotiations are slowly proceeding to see it become a member of the European Union, with foot dragging from other members alarmed by the population numbers involved.  The Kurdish entry into parliament will auger well for ending the civil war - but it all depends on how Erdogan responds to this setback.

He is a clever politician.  Early in his career he outmanoeuvered the generals and defanged the army. It is quite possible he may now cosy up to Turkey's military and hope to use them to achieve what the ballot box is denying him.

What is undeniable is that Turkey wishes to be ruled by those it sends to sit in it's parliament - and not be ruled by Islam.   It rejects the barbarity that IS is imposing on the hapless citizens of Syria and Iraq and wants none of this beheading of people simply for following their own chosen religion - and the placement of prettier captured women as sex slaves while those less attractive are sold off in the slave markets.

Turkey has served notice on Erdogan - to chance course.   He would be wise to listen !

Tuesday 9 June 2015

Police " Evidence " !

There is no doubt that a huge number of people willfully break the law that demands we do not hold a mobile phone to our ear while driving.  Driving while making a phone call or texting sharply increases the risk factor of a crash and the law is explicit.   We may not hold or touch any mobile phone while the engine of the car is turned on and the motor is running, so it is still illegal to answer a call while a car is stationery, waiting for a green light.

Last year 35,000 New South Wales motorists were fined over $ 10 million for this offence and each deducted demerit points from the license holder. One such fine recently came to court before a magistrate, and was dismissed, but it raises some interesting questions.

Nine months ago a heavily pregnant woman was pulled over and fined for using a mobile phone while driving.  She protested her innocence, but she alleges the officer told her they had video footage of her committing the offence.  She demanded to see this footage - and the request was refused. Eventually, the matter went to court.

The police are required to submit a written statement of evidence whenever they book a mobile phone offence and the front seat passenger in the police car claimed he saw this woman hold a black mobile phone to her ear.  The mobile phone this woman owns is white - and her car is fitted with the equipment to legally allow use of a mobile phone while driving using it's Bluetooth component.  The woman thought the officer may have misinterpreted her placing black sunglasses on with her hand movement to her ear.

In court, the officer who issued her fine denied her claim that he told her they had video evidence, although he agreed that she demanded to see the video.  Inconsistencies by the prosecution convinced the magistrate to dismiss the charge, but that leaves the matter of those demerit points still in place.  It is one of the peculiarities of New South Wales law that dismissal of a charge does not automatically also cancel demerit points caused by that charge.

Most people booked by police for any sort of offence simply pay the fine and accept the consequences.  It is generally accepted that if such a dispute boils down to conflicting statements by both the police and the motorist, the magistrate will always decide in favour of the police, hence going to court is a waste of time.   This woman was adamant that she would never risk the life of her unborn child, and she had taken the trouble to have her car equipped to remove the need to hold a mobile phone to her ear.  This charge offended her so greatly that she was determined to see this supposed "evidence " presented in court.

Many people are suspicious that the police are subjected to "quotas " when it comes to traffic bookings and the revenue they deliver.  The authorities claim this is a myth but the opportunity certainly exists to "pad " the number of convictions with dodgy evidence if a police officer was so inclined.   In particular, using radar for speed detection is a contentious matter and those with a mobile phone in their car would be well advised to keep both hands on the wheel at all times.

Of course, technology is also a double edged sword.   We are now seeing more cars fitted with traffic cameras and the vast network of cctv cameras captures footage that sometimes negates what police claim to have happened - and now that every mobile phone also has a very efficient camera a question mark hangs over what ordinary members of the public may have recorded.

This dismissal of a mobile phone offence stresses how imperative it is to see all police equipped with a camera as part of their uniform.   With both sound and video, both the police and the public are protected from the differing evidence presented when this matter went to court.

The only question is how rapidly this can be implemented !

Monday 8 June 2015

Ever Extending Options !

First it was Uber inviting citizens to use their private cars to make money by stealing passengers from the taxi fleets.   Then it was Airnb providing an alternative to the hotel and resort industries by renting out a room in their homes for budget conscious holidaymakers - and now that very same concept has extended to a bed in the back of a van, parked in an exciting location.

Waverley Council has long been troubled by backpackers living in their vans parked kerbside at Bondi beach.  They are careful to incrementally move their vehicles to stay within the letter of the parking law, but this is virtually permanent parking and it impedes other users from making purchases from the nearby shops and visiting our world famous beach.  Then there is the inevitable litter that overwhelms council rubbish bins and the sight of washing laid on vehicle roofs to dry in the sun upsets many people.

This backpacker scene is certainly contentious.  Some people think it adds to Australia's reputation of a laid back place where rules are made to be broken, while others deplore what they see as a feral contempt for safety and hygiene.  Unfortunately, some of these campers seem to go out of their way to be offensive, dumping rubbish on the footpaths and using parks and gardens as toilets.

Now a new concept has arrived.  Some van owners have muscled in on the backpackers and are using Airnb to offer a bed for the night - right opposite Bondi beach.  The going rate seems to be $ 34 per person/night and most vans can accommodate three people.   The advertising extols the range of eating places and facilities just a few metres away and suggests those staying overnight can use the beachside toilets and showers.  It would indeed be a cheap form of accommodation for those travelling on a limited budget.

What spooks councils all over Sydney with nice beaches within their jurisdiction is the prospect of this developing into a core "Favella  ".   The tolerance for backpackers from other countries living out of their vans will certainly evaporate if this morphs into a commercial enterprise with a steady stream of people using these vans like a hotel room.   It is also likely that older and more decrepit vans will start to offer such services further removed from the best beach scenes - with consequent lower prices.  It is not a concept to be encouraged.

There are obvious options that councils can exploit, and the most obvious is restricted parking time.  We will probably see metered parking extend and replace timed parking in vast distances from beaches and already this is making taking the kids for a quick dip a very expensive option. Many complain that parking within walking distance to a beach no longer exists in most suburbs, hence the proliferation of private swimming pools that has occurred in recent times.  This problem is exacerbated where backpackers hog what is available as kerbside unmetered space.

Most councils have by-laws making camping illegal, but some magistrates have a problem defining sleeping in a vehicle as "camping " and perhaps it will need a broader definition to bring this under control.   It is certainly evident that entrepreneurial ideas will continue to expand as the Internet delivers cheap communications to make new business ideas viable.

Who would have thought Uber or Airnb possible - just a year or so ago ?

Sunday 7 June 2015

Bondy !

Australia is a country that likes to append hero status to it's villains.  Ned Kelly achieved such immortality when he was executed by hanging in Melbourne prison on November 11, 1880 and his last words  - " Such is life " - became part of the Australian lexicon.

A man who regularly became the main news story on the front pages of Australian newspapers was Alan Bond.  He came to this country as a small boy when his parents migrated from England and ended his schooling as a high school dropout !  He established a business in Perth as a successful signwriter - and made the momentous move into land development - and from this there was no turning back.   The names "Bond Corporation ""and "Bell Resources " headed most stock market reports.

Alan Bond became arguably one of the richest men in Australia.  His moves on the stock market were legendary.  He established a brewery empire and at one stage bought the Channel Nine television empire from Kerry Packer for a record $1.05 Million dollars, only to sell it back three years later for a mere $ 250,000.

"Bondy "" - as he was known - became interested in the Americas cup, a sailing event that the United States had held continuously for one hundred and thirty two years against the best efforts of world countries.  He bankrolled Australian challenges in 1974, 1977, 1980 and the culmination in 1983 when a yacht with a fabled "winged keel  " crossed the line first - and sent this country into days of celebration.   Alan Bond became a national sporting hero.

Trading on the stock exchange and financing giant corporations is a high wire act and the risks are gigantic. An economic downturn shifted the balance and the Bond empire came crashing down, ending when Bond was declared bankrupt in 1992 with debts of $ 1.8 billion.  Court appearances followed and Bond was found guilty of financial impropriety and sentenced to several years in a West Australian prison.  Even here, he quickly became the "King of the Cons " - and served his sentence in relative comfort.

Finally free, his private life continued to interest the media.   He was divorced from Eileen and married Diana Bliss, and the ever enthusiastic entrepreneur amassed a new fortune.  His previous sins were forgiven by many, but the crash of Bond Corporation left some families destitute and many others despised him and treated his name with bitter contempt.

The media never lost interest in Alan Bond as he gradually retired from public life.  Diana Bliss suffered from depression and ended her life in the mansion she shared with her husband, sending Bond further into isolation.   He finally returned to this country in dire need of heart surgery, and unfortunately there were complications and he lapsed into a coma, from which he never recovered.

And so the Bond legend ended - with admiration from some and bitter feelings from others.  Bond was a mix of genius - and crook !   But unlike some other fallen financiers of that time, he fronted court and accounted for his sins - and served time as a consequence.  Many who had lost money from the fall of his companies were quoted as saying that "if they bumped into Bondy in a pub, they would probably buy him a beer "!

Such was the charisma of this remarkable man !

Saturday 6 June 2015

A Very Reasonable New Law !

It seems almost unbelievable, but we have an active "Stop the Cruise Ships  " protest group in Sydney, trying to ban cruise ships from our harbour.  In particular, they want to close down the White Bay cruise ship terminal because the ships run their engines during their port stay to generate electricity and this showers Balmain with sulphur residue particles - and this is carcinogenic.

The cruise industry is a fast growing world phenomenon and each year more luxury ships offer exotic holiday options - and Sydney is the prime Pacific port of call.  Thousands of cashed-up tourists spend a day ashore and our industrial complex profits from replenishing onboard supplies and the various maritime charges that apply to shipping.  It is a huge contributor to the New South Wales economy.

The state government has passed a new law and from October 1 cruise ships entering Sydney harbour will be required to switch to a low sulphur fuel oil - which costs about $ 250 a tonne more than the virtually unrefined crude that they use at sea.   This will bring Sydney into line with the regulations that apply in most American and European ports.

Of course, anything that increases costs brings protests from the cruise industry and there is the real danger of engine room fires whenever it becomes necessary to effect a fuel change mid ocean.  That is purely an engineering problem and all the newer ships will have had design changes at their construction stage to accommodate what is becoming a world wide law requirement.  Heavy fines will be levied for any such law breach.

This is a sensible and needed law and it will deliver better air quality across the entire Sydney basin when cruise ships entering and leaving the harbour are using a low sulphur fuel, but even a more refined fuel mix still results in a degree of exhaust pollution.  The sticking point for the people who reside around Balmain is the need for cruise ships to run their engines during the entire stay in port - because there is no facility for them to hookup to an onshore electricity supply.

Whoever thought of creating a cruise ship terminal and neglected to provide an electricity terminal was simply inadequate for that job.  It is a much needed rectification and it should go hand in hand with that law on the reduced sulphur fuel to be used while in harbour.  In fact, it should be mandatory for the engines to be shut down and local electricity used whenever a cruise ships is moored at a terminal.

So far there has been a deafening silence on plans to create the necessary electrical facilities to service cruise ships at White Bay.   If a site near this wharf was proposed for a big new manufacturing factory of some sort there would be a plethora of government departments falling over each other in the rush to create facilities - and claim the credit for the jobs created.   There is no possibility that the provision of electricity for such a plant would be a problem

In fact, we are now seeing a number of cruise ships in Sydney on the same day and they represent a valuable new customer for the electricity industry.  One ship probably uses about the same amount of power as a small suburb, and all that is necessary is to bring high voltage electricity to the dock for hookup purposes.

That is now required - as a matter of urgency !

Friday 5 June 2015

FIFA Yields !

Just four days after being controversially elected to a new four year term as the head of FIFA, Seth Blatter threw in the towel - and resigned.  FIFA is the world body that controls soccer and consists of representatives from each country that plays that game.   It has long been known for it's incestuous dipping into the funds pool and indecision when it comes to implementing technology to ensure fair goal decisions.  All this came to a head when the decision to choose two coming world cup venues was mired in controversy - about back scratching and vote buying.

Rumour and innuendo came under the legal spotlight when seven of the FIFA body were arrested on charges of criminal conduct and this was just before Seth Blatter stood for election for what would be a fifth term.  No charges against him were immediately pending, but  the fact that he has been in charge of FIFA for the past sixteen years while this imbroglio festers can not be a claim of competence.

The charges laid against that FIFA seven will be heard in the American justice system and it is usual there to offer a reduced sentence for the first to come clean and provide evidence that incriminates other offenders.  No doubt the entire FIFA representation will be having sleepless nights wondering what may emerge to further blacken the reputation of this sporting organization.

The fact that Blatter emerged victorious from this past election revealed a split in the world body. It seems that Africa, Asia and South America are opting for no change and retaining the status quo, while Europe, America and Australia are demanding that FIFA be reconstituted with a fresh image and rule clarity to cleanup the game.   Had Blatter remained defiant and retained his position is is likely that a FIFA split could have produced competing world competitions and organizational chaos.

Blatter will hold his position until next year while FIFA internally decides how it will reform itself, and that will bring forth some interesting pressures.  Soccer originated in England and spread across Europe before the expansion of the British empire saw it take hold in South America.  It was a minor sport in both America and Australia until the latter part of the twentieth century and now it is a world game that many would consider has the biggest sporting coverage on this planet.

It seems evident that the awarding of the 2018 and 2022 world games to Russia and Qatar had elements of bribery and corruption. Billions have been spent on building the stadiums and there are calls for these venues to be cancelled and reallocated.  That brings world politics into the equation. Old east/west rivalries and point scoring will compete with the actions necessary to reform the world body - and muddy the waters !

There are calls for an entirely new approach to the FIFA management structure and that command pass to a person with impeccable credentials.  Prince Ali ben al Hussein of Jordan stood against Blatter and forced a second runoff vote, but there have also been calls for the new FIFA head to be free of any past association with the sport - and several world figures have been mentioned, including fomer New Zealand prime minister Helen Clark.

The soccer world will be holding it's breath as the months pass and the wheeling and dealing between soccer playing countries  forms groups and alliances to decide the outcome.  Unfortunately the people who head the game in individual countries are unlikely to change and for some of them the past - with it's inscrutable protocols and rich rewards for membership and control - was a very comfortable arrangement - which they wish to continue.

About the only certainty is that if soccer fails to improve it's governing body part of the present membership will walk away - and form a new code.  It would be in the best interests of the world game to consign the old arrangements to past history  !