Saturday 31 March 2018

The NINBY Factor !

A proposal to build a $700 million waste to energy incinerator at Eastern Creek seems set  for refusal.  Until recently Eastern Creek was best known for its racing circuit but the demand for home sites has seen it become an attractive housing suburb and there is a strong NINBY reaction to siting the incinerator there.

Protesters do have a point.   These plans locate the unit just 800 metres from homes, schools and sporting facilities and this industrial plant is expected to burn well over a million tonnes of industrial waste a year.  It will use the latest technology, but there is the inevitability that it will discharge emissions that include  small particulate matter, sulphur dioxide and heavy metals.   The heat generated will be turned into sufficient electricity to serve thousands of homes.

The proposal generated  949 public submissions, only two of which voiced approval.  It is now in the state political melting pot and the Greens have signalled their opposition.  They are calling for a fifteen mile exclusion radius from all forms of housing for this and similar proposals.

That raises another interesting question.  Where - in the ever expanding metropolis of Sydney - do you find a vacant piece of land surrounded by a fifteen mile exclusion from housing ?  Basically, that excludes all forms of new heavy industry from the city and suggests it can only be located in deep western country New South Wales.

We would do well to remember what happened with the search for a storage site for the nuclear waste generated by our sole nuclear reactor at Lucas Heights.  Despite searching this entire continent we have not been able to achieve agreement for a site just one mile by one mile square to build a storage facility that will remain inert for thousands of years.

As a result, the used fuel rods remain stored within the reactor site deep in the heart of Sydney and there is little prospect that this situation will change any time soon.   We continue to generate waste and now China is refusing to accept our plastic waste exports and we face a new disposal problem. If we send this volume to landfills it will quickly overcome our capacity at existing sites, and we will face this same NIMBY problem in finding new ones.

A modern waste incinerator is the logical answer to this problem and to be economically viable it needs to be within reasonable trucking distance to where the waste is generated.  What is now required is the political consensus to bite the bullet and make the decisions about where it will be located.

It is inescapable that the NINBY objections of some part of Sydney will have to be rejected for the common good !

Friday 30 March 2018

" Cheap Travel " Plans !

Car pooling has never really taken off in Australia.  Watching the daily commute we see an extraordinary procession of cars with just a single driver occupying the space that would seat five people.  In most cases where a driver does share and offer a lift it involves a neighbour or a friend.

Uber is about to launch a scheme which is similar to what is called  " Uber Pool Express " in the   United States.  It will only be available in the inner area of Sydney and that will range between  Bondi and Leichhardt and Sydney Harbour and Mascot to concentrate on the pool of people moving to jobs in the centre of the city.

The attraction is lowering the cost of travel.  The more people sharing the car, the cheaper the journey and Uber thinks that will overcome the distaste for sharing a ride with a stranger.  Uber is a really a cab company and this is organized ride sharing to further lower the cost of what is normally a single  person hiring a cab ride.

The very nature of the daily commute means that twice a day a vast mass of people are moving in the same direction and sharing a cab would be preferable to squeezing onto the public transport system, but it does involve a little walking and waiting.

Uber will match people grouped in a small geographical area who want to travel to a similar city destination at a similar time of day.. They will be directed to congregate at a " dynamic spot " nearby where the car will pick them up.   If four people share the journey instead of a single passenger hiring that cab then obviously the fare is shared four ways and each makes a significant saving.

The only downside is that it robs public transport of the numbers that make it viable and increases the number of cars competing for space on inner city streets.  Make or break will probably depend on the reliability factor.

Qantas is toying with the idea of adding a new travel class to the existing options of " First Class ", " Business Class " and " Tourist Class " by inaugurating a new option which some will certainly dub " Cattle Class ".

The airplane industry is forever building planes that go faster and travel longer distances without a refuelling stop.  The Boeing " Dreamliner " can now travel from Australia to London or New York without a break and perhaps we may soon be offered a new class of seating in the cargo hold.

The cost of travel is inevitably geared to luxury.  The more individual space and pampering, the higher the price.  Airline thinking is considering that an even lower fare that excludes windows to admire the view and seats similar to train like berths might be attractive to the very price conscious traveller.

That concept was introduced by the ship industry where a single overnight journey was involved. Instead of a cabin, travellers were offered a reclining aircraft style seat in a common area with dimmed lights for a much lower fare.  It is envisaged that there would be room for passengers to walk around and get exercise in the cargo hold of planes and food would be available in  snack form, at the travellers expense.

This thinking weighs the shorter duration of direct flights with passenger expectations. Aircraft seating - and travel prices - are related to luxury and there is always room for a more basic standard for those who prefer to use their money for the delights that their destination promises.

If this eventuates, the airlines will most certainly adopt a more appropriate name for this  class of travel but it does have an unmistakeable connection to the live export trade.  Airline travel was more glamorous when it was expensive and rare. In todays world, lower prices are paramount.

Thursday 29 March 2018

Militant Islam - On Our Doorstep !

Sadly, it seems that our nearest neighbour is forsaking religious tolerance and pluralism and embracing militant Islam in its political leadership.  Indonesia is a country of about 260 million people who are predominantly Muslim  and who until recently have practised a moderate form of Islam.

Their president was the governor of Jakarta when he won the presidency. Joko  " Jokowi " Widodo passed that governorship to his deputy, Basuki Tjahaja Purnama who is known as Ahok, and who is a Christian.

Trouble started when Ahok decided to run for election to retain that governorship and his rivals used verse 51 of the fifth chapter of the Koran to suggest that Muslims could not vote for him because that forbids Muslims to live under the leadership of non-Muslims.  As well as being a Christian Ahok is ethnic Chinese.

When Ahok countered by suggesting that Muslims were " deceived " by this reference, militant rivals rushed into the streets with claims that this was blasphemy. Blasphemy laws introduced in 1965 in the early days of Indonesian independence are still active and Ahok was arrested and put before a court.  He was convicted and sentenced to a two years prison sentence.

There have been calls for these blasphemy laws to be withdrawn because the number of people being charged has increased sharply.  It is likely that at the next presidential election militants will use this law to insist that a Muslim is elected and most likely demand that the contenders have a suitable adherence to militant Islam.

There has long been a residue of Islamic extremity active in this vast archipelago and it contributed fighters to Islamic State in its war in Syria and Iraq.   This underground insurgency was responsible for the bombings in Bali and Jakarta and with the defeat of IS those fighters are likely to return and add impetus to the local movement.

What is disturbing is the rejection of an appeal by Ahok to the Indonesian Supreme Court for a review of his sentence.  There was an expectation that a more moderate view would prevail and Ahok would be released.     Instead, his appeal was rejected and he will serve the remainder of his sentence.

It seems evident that opposition forces in Indonesia will embrace militant Islam as the key to winning office.  Religion is a powerful force with which even moderates are easily coerced into voting along what they consider to be essential religious lines when their faith is being questioned.

Religious fervour and militancy are not a welcome outcome in this peaceful part of the Pacific ocean.

Wednesday 28 March 2018

The " Live Gig " Market Recedes !

Probably the greatest  music story success of all time was the emergence of" The Beatles " back in the 1960's.  This group of four young Englishmen battled to get a gig in a live music venue and from there developed a music style that swept the world..  Many of the Australian bands that achieved fame and fortune got their start playing to weekend audiences in the live music scene centred on local pubs.

That was then - and this is now !  That live music scene is shrinking and with it the opportunity of talented young musicians to break into the big time.  The music scene is a tough nut to crack.  In the past the pub scene offered benefits to both parties.  If the patrons liked the music the band was playing the numbers grew and the publican made more money.

The tide began to turn when the state enacted noise abatement laws. Not only a growing number of complaints about the sound of music played, but the noise of cars and people when these venues emptied out.  The licensing of poker machines in pubs also had a big influence on the live music scene.  Areas set aside for live music was more profitable converted into a poker machine arcade.

It became quite clear that the law favoured even the most unreasonable complainant.  Restrictions began to kill off popular venues in the suburbs and for a time live music only lived on in country towns.  In the city, live music had been attractive to local people who enjoyed a walk to the pub to avoid the need to drive and when noise laws drove out the music this attraction waned.

The Sydney music world is aghast at the news that the Basement at Circular Quay is closing its doors as a live music venue.  This news broke on Facebook last week and it has been confirmed that the Basement will close in less than a week.  The building is owned by AMP Capital and it seems that the lease has been terminated by " mutual agreement " with the lessee.

Circular Quay is the epicentre of the Sydney ferry trade and it is the cities prime business centre but in recent times new buildings have enhanced a move for the return of city living.  This form of accommodation is both luxurious and expensive and we now have people nearby to exercise those noise abatement laws.  Perhaps this is one of the reasons for the closure of the Basement.   The streets of Circular Quay are crowded during the day, but are often almost deserted at night.

The music genre will certainly miss the Basement.  It had become iconic and hosted both emerging and famous names and its future use is uncertain. There is speculation that it may be turned into valuable office space in the heart of the city, but it will also be an attractive option for a new restaurant.

Whatever the outcome, the chances of young people with music talent hoping to put together a band that will bring them fame and fortune recedes even further.

Tuesday 27 March 2018

The Ugly Australians !

Of all the sporting codes, cricket enjoys that hallowed eminence as the game played by " gentlemen " !  When we think of the origin of cricket we envisage " flannelled fools " waging warfare between bat and ball on the village greens of country England.

In 1882 it was considered impertinence when a colonial side from Australia travelled to England to play the home country in a game of cricket.  To the consternation of the English, the Aussies won handsomely and a leading English newspaper proclaimed that " cricket had died and the ashes have been cremated and taken to Australia ".   Those " ashes " became the trophy for regular game series between the two countries.

Cricket is a curious game played by teams that consist of eleven players on each side.  Two players take stance at the wicket and a bowler delivers a ball that he hopes will confuse the batsman to miss with the bat and shatter the stumps.  A batsman may also be dismissed if the ball is declared LBW or is caught in the air by a player in the field.  The game is watched and adjudicated by two independent umpires.  The two batsmen exchange ends and run between the stumps when a scoring run is achieved.

The vagaries of the game are many. The play causes the turf wicket to crumble and wear on the ball causes it to lose its shine.  Some bowlers develop the skill to allow the ball to " spin "  and the tactics used often determine the winner.  This is a game known for its fairness and camaraderie and it has developed into a world competition.

The sporting world was shocked when the cameras covering a series between Australia and South Africa detected Australian player Cameron Bancroft acting suspiciously with the ball.  It seems he was rubbing dirt into one side using a piece of adhesive tape to achieve this objective and when this was brought to the attention of the umpires he hid the tape in his trousers.

Clearly, this is cheating. A ball shiny on one side and rough on the other can be manipulated to deceive.  The tests being played are even at one game all, and this current game was sliding towards defeat.  It rocked the world of cricket when Australian Captain Steve Smith admitted that he and senior players had conceived this ball manipulation.  Smith and his vice captain, David Warner have stood down and the test will continue with wicketkeeper Tim Paine taking the lead.

It is almost unthinkable that an Australian team would stoop to cheating simply because they were facing a game loss.  In the past we have fielded the best teams in the world and we have also suffered humiliating defeats.  This slur on the national honour can only be erased if those who had a part in this disgrace are banished from the Australian team and prevented from playing this game at any level for the remainder of their lives.

At least Steve Smith admitted guilt and did not leave Cameron Bancroft to face the music alone.  He deserves credit for that sincerity but we also need to review why the hallowed game of cricket is under such intensity that cheating has become an option to prevent a loss.  There will be suspicion that legal betting on the game intensifies pressure on the team and the huge sums paid for television coverage should also receive examination.

This is an outcome that will disgust the many Australians who love cricket.  It will eventually be overcome only if we act swiftly - and fairly.  All who took part in that shameful decision have no further place in this team or in the administration of the game.  To many it is the end of both fame  and fortune, but such is the outcome when their actions tarnish Australia's honour !


Monday 26 March 2018

This " Politically Correct " World !

Australia was never a society that embraced " arranged marriages "  as is the custom in many parts of Asia.  Those were the days when most romances followed a very predictable pattern.  A young couple were deemed to be " going steady "  until one day a ring was produced and they announced " an engagement ".   That was regarded as big news in social circles and the families were deeply involved in planning the wedding.

In todays " try before you buy " society, engagements along official lines are becoming a rarity and it is much more likely that the couple will simply move in together and ignore the custom of the marriage ceremony.  Production of children without the sanctity of marriage is no longer unusual and we live in a world of changing family values.  Many new world families are a mix of relationships as a consequence of many failed attempts at a lasting union.

Of course this is deplored by the churches who still the preach the doctrine of monogamy and insist that marriage is forever.  The creation of the " Family Court "  and the concept of " no fault " marriage dissolution eased the misery of failed relationships forced to maintain appearances by the customs of an unforgiving society.

We are now a " politically Correct " society.  How we speak and how we react is strictly governed by protocol.  Gone are the days when a pretty girl walking down the street could expect to be greeted by a wolf whistle.  It is no longer acceptable to compliment either gender on their choice of clothes or hairstyles.  At a time when the tenets of the old order have been abandoned we have many in this new society who have difficulty in finding a mate.

Many decades ago Saturday night was " dance night ".  From cities to country towns a lot of places had a venue where a dance night was held and young men could approach women and ask them to join them on the dance floor.  Many a relationship started in this way, but today it has been replaced by the club scene where casual approaches are frostily rejected. People with a shy or reserved nature find this discouraging.

What is surprising is the number of men and women who are turning to  " introduction agencies " in desperation.   This is really a return to the old " Matchmaker " of yesteryear who connived with families to marry off reluctant sons and daughters who it was feared would be " left on the shelf ". They were skilled in arranging introductions without the beneficiaries being aware of their ministrations.

Todays introduction agencies are purely money making enterprises.  Some genuinely try and match couples but others simply present a list of " availables " and leave it to the client to make a move.
The client listings cover all age groups and in many cases persistent users find that the service costs them a lot of money.

Perhaps that old adage that " a faint heart never won a fair lady "  applies to either age, but political correctness is the impediment which is now not making things any easier !

Sunday 25 March 2018

A " Garbage Patch " at Sea !

We have long been warned that disposal of plastic in the worlds oceans is causing harm to the creatures we rely on in our food chain.  Not only do plastic bags get mistaken for edibles and eaten by fish and turtles but the sunlight causes plastic to breakdown into tiny particles that sink. to the ocean floor and become fodder for the small organisms that ingest them.  Eventually, this finds its way into humans because the products of the sea are an important part of our food chain.

Ever since oil became a valuable product early last century and began to power the internal combustion engine we have discovered ways of using it to make plastics which have changed the world.  It is now hard to imagine a world without plastic and much plastic waste washes down gutters and finds its way to the sea.

Our oceans are not static.  The great gyres and currents agitate it like a giant washing machine, moving warm water and mixing it with cold and this results in our weather patterns.  A warm part of the ocean helps storms like Cyclones form.  These currents intersect and wash the shores of all the continents.

Floating plastic has for many decades been forming a garbage patch on the ocean surface in the Pacific  at a point between California and Hawaii.   The area of contamination is now as big as the entire country of France - and it is continuing to grow.  Many of the great cities of the world are situated beside rivers and discarded plastic waste is adding steadily to this great floating garbage patch that is worrying science.

In the distant past rubbish in the seas faced this same accumulation, but the substance was wood and it rotted and dissolved.  Much of todays plastics may survive for centuries and if the bird life that crosses oceans discovers it and adopts it as a sanctuary their droppings - guamo - may cement it into permanent floating islands.

That could be fatal to seas creatures that need to breathe air to survive, including turtles and whales. This accumulation of plastic is an entirely new phenomenon and science can not accurately predict the outcome.  Some of the plastics will be degraded by ultra violet light, but others are created to achieve almost unlimited longevity.

For a very long time we have regarded the sea as a convenient place to discharge our rubbish.  In many parts of the world untreated human waste is still discharged into the sea and rain runoff goes the same way without any form of filter.  Unless the countries of the world improve their waste habits that giant garbage patch the size of France will eventually expand to the size of Europe.

If that is allowed to happen, the outcome is unknown !


Saturday 24 March 2018

Charged with Murder !

The shooting death of Australian woman Justine Damond in the American city of Minneapolis on July 15 last year has finally resulted in a murder charge being laid.  The man who fired the fatal shot was a policeman and he and his partner were responding  to Justine's call reporting screams behind her home which she thought might be a rape in progress.

As the police patrol car pulled up Justine - dressed in her pyjamas - approached to speak to the officers. Mohamed Noor - sitting in the passenger seat - leaned across the driver and fired a single shot which hit Justice in the chest and killed her.

For eight long months Noor has been free on suspension from his job as a policeman and he has exercised his right to silence.  The prosecution has claimed that the police have been deficient in conducting their investigation into this incident and this has joined the many cases of police gun fire killing people who do not appear to have committed a crime.

What is unusual about this case is the fact that it is a black cop shooting a white woman.  The majority of cases roiling African Americans are usually white cops shooting black people and the deaths going unpunished because Grand Juries of mostly white citizens decide that the shooter does not have a case to answer.

Another unusual aspect of this case is that Mohamed Noor hails from Somalia and the fact that he is now free on bail raises fears he may flee the country. It is also noted that the bail figure is a mere $515,000 in Australian values and that this has been obtained from a bail bond that requires just ten percent cash up front.  There are few extradition treaties in force between America and African countries.

The charge he faces is third degree murder which carries a maximum twenty-five year prison term and alternatively,  second degree manslaughter with a ten year prison sentence.  Noor's bail conditions prevents him from contacting his police partner on the night of the shooting.

Noor will face court again on May 8 and the world media will be watching this case with interest. In America the police unions have enormous power and they use it to protect their members even when deaths are both suspicious and controversial.  Acquittals have caused major street riots and the destruction of property and sparked the " Black lives matter " movement.

What caused Noor to fire his gun is a complete mystery but he and Justine were complete strangers and it seems impossible that he shot with intent to commit murder.   The charges he faces seem quite reasonable considering that a manslaughter option is available in this case and there is no doubt that Noor is the reason for her death and that the death requires that punishment will be delivered.  What would be unacceptable would be police coercion or the trial being moved to a district where a selected jury delivered a legally suspect dismissal of the chargers.

We are all responsible for our actions and in this case it seems that a police officer made a fatal mistake.  The prosecution has decided on what seems a reasonable charge in the circumstances and now the case must reach a logical conclusion.  Anything less would do irreparable harm to the American justice system !

Friday 23 March 2018

Levelling the Playing Field !

It looks like some of the benefits of online shopping are about to retreat.  When this July rolls around goods under a thousand dollars will no longer come into this country free of the GST.   That has long been a gripe from our brick and mortar stores and it does leave them with at least a ten percent price disadvantage when competing with eBay and Amazon.

Now a new levy of five dollars for every parcel coming into the country is looming on the horizon.  It will be called something like " a biosecurity tax " and the aim is to recover the huge cost of security screening that applies to postal articles to check for drugs or dangerous items entering our shores.

Last year 38.7 million parcels arrived consigned to Australian households and this was a 22% increase on the previous year.  Mostly these are for low value goods and the statistical analysis boys predict that the numbers will increase by at least a further 31% over the next four years.  The sophistication of drug concealment ensures that this screening to detect drugs will sharply increase inwards mailroom costs.

A flat tax on each parcel is far simpler than levying a tax based on the value of the goods in the parcel and it would deliver about $200 million in the short term.   It is also likely to bring about a change in buying habits.  That combination of the GST and a five dollar tax on each package will deter single item buys in favour of combining a number of items in the one package.

It also vindicates the improved surveillance of bulk cargo at our ports of entry, which has been the preferred method of drug importation.  The huge number of containers entering each year made individual inspections of each impossible, but new X-ray analysis has increased speed and accuracy to the degree that detection rates have increased exponentially.

Cocaine, opiates and crack have turned drug importers to testing the mail system with lesser quantities skilfully hidden in parcels.  We have more sophisticated checking equipment installed but this does slow throughput and increase the labour content and the government wants to recover these costs.

There is also an obvious necessity to achieve balance in the marketplace.   The fact that our biggest chain store group has just announced a loss that sent their share price tumbling and raised doubts about the groups survival raises many questions.   Do international companies that do not pay tax in Australia have an unfair advantage over  Australian owned and operated businesses ?

The thousands of people who earn their living in the retail trade in Australia may see the GST and that package tax as levelling the playing field !

Thursday 22 March 2018

Wearing Two Hats !

Last Saturday Sally McManus won a seat in the Federal parliament when she prevailed in the Batman by-election.  As she is also the leader of the ACTU and shows no sign of stepping down it raises a good question of who she will be representing.

The voters of Batman delivered her sufficient votes for a win and that is their democratic choice but the ACTU is engaged in a " change the rules " campaign which - if successful - will materially alter the employment situation in Australia.   It wants a law change to allow people who work on a casual basis to demand that they automatically change to the status of a permanent employee when they complete six months of service.

There is a giant gulf between casual and permanent employment rules in this country, not the least is the legal contortions an employer must take if it becomes necessary to shed labour.  This same ACTU is adept at harnessing the many appeals that will delay the process and cost the employer an enormous amount of money.

Many small businesses require labour to meet demand peaks but could not afford to employ that person for the full week, and that is why casual positions fill that gap.  A permanent employee is entitled to statutory public holidays and both annual and long service leave.  A casual receives a higher hourly rate than a permanent employee to compensate for those losses.

The ACTU argument is that casual employees have no job security and this is usually the decisive factor in obtaining a housing mortgage.  A permanent employee is deemed financially " settled " while the ability of a casual to repay is in doubt.   Many casuals have worked for the same employer for years but the vagaries of the market make it reluctant for that move to permanency to be taken.

What will aggravate many people is the ACTU demand to remove the choice of casual or permanent from employers.   Employers would need to carefully count the days and rotate casuals to ensure nobody achieves that fatal six months of employment.   Running a business would become a battle with the unions to cover demand peaks without falling into the trap of falling into permanency that the business could not support.

The ACTU is also demanding more flexible work arrangements for those caring for sick family members.  Many employers do make special arrangements, but the priority is to cover demand peaks and that must come first.  The ACTU has a strange view on work preferences.

It seems that when Sally McManus sits in the Federal parliament she will be wearing two hats.   She will also represent the people of Batman who didn't vote for her, and her other allegiance will be to a union movement that is openly hostile to employers.  Split loyalties will bring interesting vote choices when contentious issues are decided by a parliamentary plebiscite !

Wednesday 21 March 2018

The " Two Wheel " Injury Risk !

Once upon a time the old " push bike " - as it was called - was something kids rode and which we claimed was harmless.  They have never needed a number plate or any form of individual identification.

In todays world cycling has become an endurance sport with the Tour de France stopping the country of France for a week at each event.  Not only do we encounter cycle racing teams training in this country but cycling couriers often break rules in city traffic as delivery speed is the essence of their trade. Numerous collisions between cyclists and both cars and people are inevitable.

Unlike cars, in which personal injury is covered by the compulsory third party insurance included in registration costs, the injured are reliant on the courts to claim redress for injuries suffered in a cycle accident.   Gaining a court order is useless if the perpetrator lacks the funds to pay the claim.

Cycling is being promoted in the interests of reducing global warming and as a means of  enhancing exercise to reduce obesity and we are presently inundated with hire bikes which can be accessed by a swipe of our mobile phones.  Several companies are competing for our trade.  The streets are literally swamped with bikes abandoned at the conclusion of rides and some councils are imposing seizures to try and restore even a semblance of order.

This hire bike enterprise is a world phenomenon and the companies concerned are based overseas. We have just has the experience that on a very windy day one hire bike commenced a riderless journey downhill to where it crashed into two cars at a busy intersection.  One of those cars was a chauffer driven Tesla and the damaged amounted to $6000.

The company that owns the bike that caused the damage is based in Singapore and all efforts to learn the name of its insurer have failed. Despite repeated promises of calling back with the information, this has not eventuated.  This is required for the car owner to claim on their own insurance company.

Technically, this is a road accident and the law requires the bike owner to provide insurance information, and consequently the Tesla owner reported the matter to the police.  The police took a statement from the Tesla driver, but have since suspended their investigation because there is no evidence to suggest a criminal act or traffic offence.  The entire incident looks like being consigned to that amorphous category of " act of God " !

This incident sounds a clear warning.   Any cycle being used on a road becomes a " vehicle "  and it is essential that ownership can be established if it is involved in injury to another person.  Each cycle needs an identification number and that can only be achieved by registration.  If the registered owner fails to cover the cycle with insurance cover, then any damage or injury it causes becomes his or her personal responsibility.

The only reason the " push bike " has escaped so long is because it came into being well before the advent of the motor car.   Now that its numbers have increased exponentially it must accept its role in the risk factor.

Tuesday 20 March 2018

Killing Off Franking Credits !

Bill Shorten's plan to cancel cash refunds to 1.2 million taxpayers who enjoy tax credits on the dividends they receive from owning shares would give him a $5.6 billion war chest to entice votes at the next Federal election.  It is hoped that new benefits for younger voters will more than compensate for votes lost by pensioners and older Australians who benefit from the " franking " system applied to share dividends.

One other benefit that Shorten seems to choose to ignore is how this move will be received in the company sector.   That franking applied to dividends is really an affirmation that the company concerned has paid all required taxation on its profits if a hundred percent franking is granted.  Even fifty percent franking is far superior to a dividend which will be fully taxed when added to the earnings of income submitted to the tax office.

When people buy shares one of the things they consider is the franking status of dividends.  That is an accolade for which the company can be proud and it contributes to the share price.  If it is devalued then that affects the share price accordingly, and with that the incentive for the company to meticulously obey all tax ordinances to achieve franking status.

Shorten is now talking about putting a five hundred dollar - or perhaps a thousand dollar - limit on converting franking credits to refunds by the tax office so that the pensioners and retirees with a small share holding might be protected from this money grab.

That is typical of the Labor parties socialist roots.  The whole purpose of franking was to avoid double taxation.  A company is taxed with a variety of laws as it trades and when it eventually achieves a profit some of that money is distributed to shareholders by way of a dividend.  Without the benefit  of franking that is then taxed again when included in the income of the shareholder.

In Australia, when someone retires they are handed their superannuation " pot " of money and have to make investment decisions so that it lasts for the remainder of their lives.  Some elect to put it in shares or select a mix in which shares play a big part.   Often, they are part pensioners and therefore do not need to file an annual tax return.  That franked dividend is therefore useless unless they can have it converted into a cash refund cheque by the tax office.

Labor now seeks to ignore the double taxation issue and concentrate on the wealth of those  receiving dividends from shares.  It seems to suggest that money is preferably better managed in the hands of the government than in the hands of individuals and that is the basis of the parties socialist policy platform.  This suggested five hundred dollar - or thousand dollar limit - puts a further limit on the wealth an Australian pensioner or retiree will be permitted to accumulate.

Once double taxation fairness goes out the window, expect many trading companies to become more interested in tax dodges and less interested in franking.   Removing the ability to turn franking credits into cash income will hurt a lot of people and simply change the tactics employed when it comes to money management !

Monday 19 March 2018

Our Personal Safety !

Road fatality statistics tell us a compelling story.  The older the car we drive, the greater the chance that we will die if we are involved in a car crash.  It is a fact of life that cars built before 2001 simply lack air bags and mechanical improvements that protect drivers and passengers if the vehicle is involved in a major accident.

Car safety has been progressive.  It was back in 1964 when we legislated to make the provision of seat belt anchorages mandatory in all new cars sold in Australia and in 1973 the wearing of seat belts by drivers and passengers passed into law.  Today, a small percentage of people ignore that law and consistently drive and ride without those seat belts being fastened.

The car industry must have every new model ANCAP tested and this results in the award of safety stars.  Five stars is the accolade, and it is hard to sell new vehicles which fall short of that standard.  As a result, most people are aware that their safety is paramount if they are driving a vehicle with that designation, but statistically twenty percent of the cars on our roads are too old to reach that standard.

Even more alarming are the number of young people driving around in what the industry terms " a bomb ".   Here we have the " first car " syndrome and that is usually very old and very second hand - and consequently " cheap " because it lacks buyer appeal.   Those same young people also lack driving experience and are prone to the thrill of high speeds.  They are over represented in death statistics.

Cars over four years old require an annual safety check before re-registration.   The authorities will be tempted to introduce draconian standards to weed out older models which are mechanically sound, but simply lack the modern refinements that save lives.  That will anger a lot of people.  In particular, families that have a venerable older car that is driven to the shops once a week for grocery shopping. Such vehicles have a deep affection in their owners eyes and any move to force them off the road will be bitterly resisted.

New cars have never been cheaper.  It is possible to buy a very well equipped new small car with a five start ANCAP rating for as little as fourteen thousand dollars.  Consequently, the price of second hand vehicles has slumped, and we are on the cusp of electric vehicles replacing the internal combustion engine.  The advent of driverless cars is also knocking on the door, although this may be a decade away before it reaches significant numbers on the road.

Unfortunately, all this presents our road safety people with a new dilemma.  It is highly likely that the owners of older cars may resist upgrading to a new vehicle because they are waiting to see if this electric revolution eventuates - and have the expectation that the driverless age may make any new car quickly redundant.  Even the crystal ball gazers can not put a time frame on when all of this will happen.

The only expectation is that inspections for registration will get a lot tougher and the older the vehicle the more difficult it will become to gain registration approval.

Sunday 18 March 2018

This Weird World !

The magistrate on the bench at Newtown court must have realised that it was going to be an interesting morning when he noticed that one of the cases to be heard was a plaintiff named " Meow  Meow ".   In fact his full name was " Meow-Ludo Disco Gamma Meow-Meow - and he was not a cat !   He had previously been known as Stuart McKellar and he was a a body hacking scientist who hailed from Texas.

Curiously, he was charged with travelling without a ticket and failing to show a ticket to a NSW train inspector.  That is despite successfully tapping on and tapping off on the states Opal card system when he travelled by train, by way of the Opal card chip which he had had implanted under the skin of his left hand in 2017.

He had indeed paid his fare but for strange reasons the authorities decided to fall back on an old law that was still on the books from the time of paper tickets needed for each journey.  In todays world that Opal card is the ticket - and it must be produced when required.

Despite the NSW transport  system moving to accepting credit cards and mobile phone payments on Opal readers, they decided this implant was unlawful.  So - as he was unable to produce a visible card, he was charged with an offence and the state flick passed it to the magistrate to sort it out.

The Beak stuck to the letter of the law and fined him $220 and ordered him to pay $ 1000 costs, but recorded no conviction.  To add  insult to injury, that Opal card chip has been cancelled and this should serve as a warning to travellers thinking of adopting twenty-first century technology to avoid the loss of Opal cards.  The state takes a dim view of implants !

On the subject of court fines, the many owners of small businesses in this state will find it almost unbelievable that in France you can be fined for working too hard.  The French have laws that insist that every citizen has recreation and to achieve this they must take one day off each week.

It seems that a baker in a holiday area was so inundated with requests from tourists for fresh croissants and baguettes that he was working seven days a week in the holiday season.  He ran foul of local labour laws that dictate and insist that local businesses work only six days out of seven.  He was hauled into court and fined the Australian equivalent of  $4744.

Of course, we once had very restrictive laws that dictated who could  open on weekends and what merchandise could be sold but all that has passed into history.  Small business owners and their families are accustomed to seven day trade and even a few hours off work is regarded as a bonus.

No doubt that French experience will weight on the mind of many small business proprietors as they roll up the shutters and prepare for a busy day serving the tourist trade.   They will also remember the anger back in the days when the law prevented them from opening on a Sunday !




Saturday 17 March 2018

Integrity !

It is most unusual for a person holding one of the nation's most important security functions to be terminated without facing court and having the matter dealt with in the full glare of the media, but Roman Quaedvlieg was head of the Australian Border Force which is responsible for policing entrances to this country and the grounds for his sacking was a breach of integrity.

It is evident that making that decision was taken at the highest level of government.  In fact it took no less an authority that the Governor-General, Sir Peter Cosgrove to use the powers of his office to legally terminate the appointment and that was after he was stood down for ten months on full pay because of his decisions which undermined his capacity to continue as ABF Commissioner.

It seems that love and personal relationships were responsible for Commissioner Quaedvlieg losing his $620,000 a year job.   It is alleged that he changed recruitment procedures to get his girlfriend a security position at Sydney airport and failed to declare his relationship with this woman.  These lies alerted the law enforcement watchdog.  Interception of messages revealed that the Commissioner had left his wife and started a new relationship with this woman, and he was in a position to influence the selection of a candidate for employment.

Perhaps this is an indication of changing times.  Of all jobs, that of Commissioner in a law enforcement capacity has the potential to deliver great reward if it is misused and over the decades several state police commissioners have left office in disgrace.  It has been proven evident that when the boss of a police force is less than squeaky clean, then lesser ranks become susceptible to lining their own pockets by using the power at their disposal.

This may seem like a minor indiscretion.  In the commercial world the " old boys network " is often used to get the son or daughter of an influential citizen to the head of the queue in job selection and that is rarely questioned.  Some would see that as one of the perks of attaining high office, but the men and women who work in border security are at the very forefront of our defences against drug importation.  A few kilos of many substances can deliver a reward of millions of dollars and that is sufficient to justify enormous bribes to turn a blind eye.

Roman Quaedvlieg made a serious error of judgement - and he has paid a high price for it.  The decision will send shock waves through the higher echelons of other police forces and help curb temptation.  We expect honesty and integrity at all levels when we make contact with police and generally this is forthcoming.  It is comforting to know that checks and balances are in place and today integrity levels reach even into the Commissioners office !

Friday 16 March 2018

A Presidential Weirdo !

More than a year after taking office President Donald Trump shows no sign of attaining the gravitas that normally goes with that position.  One of the most important roles in any administration is that of " Secretary of State " .   Trump has just fired Rex Tillerson and appointed Mike Pompeo who was head of the CIA.  In typical Trump fashion, Tillerson was in the air and on his way home from a mission to Africa when he learned that he was fired - from a Trump tweet.

Trump continues to run the White Hose and the nation in similar measure to the way he once used to run a television show.  People are appointed on impulse and often with no clear suitability for the job in hand and a vast array of important posts remain unfilled.  Some countries need the appointment of an American ambassador and many functions are rudderless because Trump is clearly not interested in matters that do not hold his personal attention.

This attrition of his personal staff and advisers is sending jitters to the financial world.  Trump is talking openly of launching a trade war.  He thinks he can restore the balance of trade in Americas favour by imposing tariffs to protect American manufacturing and restore jobs that have gone overseas.   The likely outcome would be a race to the bottom as other countries implement tit for tat tariffs and usher in a world recession.

The resignation of one of  his key financial advisers is ringing alarm bells.   Gary Cohen had international credibility and the fact that he has walked away from the job seems an indication that his advice was being ignored.   The problem is that the man who sits in the oval office has powers similar to a dictator and in Trump we have a president who does not fit the profile envisaged by the founding fathers.

He won office by appealing to his nations less educated citizens and making promises that can not be fulfilled.  He told them what they wanted to hear and this message has condensed into personal loyalty that makes a second term a possible reality.  American politics had divided sharply along partisan lines and even reasonable compromise now seems out of the question.

This American distraction comes at a time when China is rising with alarming speed and Vladimir Putin has consolidated his hold on a militaristic Russia.  American leadership in a dangerous world has lost clarity. New liaisons are taking shape as the balance of world power changes.   The cohesion of the EU in Europe is now in question.

Sadly, the prospect of world prosperity rests in the hands of one man who many see as irrational. If the nation with the most powerful military force on the planet engages in a trade war the outcome would be unaccountable.  That fate depends on where Trump takes us !   World commerce depends on the whim of as very unstable man !


Thursday 15 March 2018

Robbing " Franking " Dividends !

When a company makes a profit it first must pay the government what it owes in company tax.  It is then free to distribute a dividend to its shareholders, who must declare the money they receive in their tax return and it was again taxed when their income was assessed.    Clearly this was double taxation.

A long time ago the government recognised this anomaly and introduced a " franking " component to dividends.  This is recognition that the money has had company tax paid and can be claimed as a reduction in the receivers tax bill.  In this way, it eliminates that double taxation issue.

That was fine for those who earn at a level that requires a tax return each year, but the benefit was lost by pensioners and those below the taxable threshold.  As a result, they are now entitled to make application to the government to have that franking amount reimbursed in the way of a dividend cheque from the tax office.  A political party is threatening to disallow these cash refunds to those below a taxable income, but still allow the input for those who submit a tax return.

In the world of politics it is argued that if people are not actually paying tax, then they have no right to a dividend from the tax office.  That political party hopes to use the billions gained to fund promises that will gain them votes at the next election.

Their Treasurer claims less than one percent of full pensioners would be hit by the changes and it would apply to just fifteen thousand people.   The media's costings see it differently.   Up to a quarter million  part pensioners would be affected, which is almost a third of those drawing a part pension in Australia.

That political claim ignores the huge number of self funded retirees who have a small portion of their retirement funds invested in shares and are below the taxable threshold.   Those franking dividend cheques are vital to providing living expenses and formed part of their retirement strategy when they planned their retirement.    Removing it now would be similar to moving the goal posts while the game was in play.

There is another factor that seems to have been disregarded in New South Wales.  Many years ago the NRMA demutualized and handed ownership back to its members by way of shares in its insurance arm.   Those who were members to receive road service benefits found themselves shareholders and many of those are now pensioners who value those dividend cheques and their franking component from the tax office as pension supplements.   There are a vast number of people in which this is their only venture into shareholding.

What is not being mentioned in this furore is the grading of franking to ensure that companies pay their fair share.   A company which meets all the obligations of the tax department may be allowed to issue franking at a hundred percent of face value, while those using reduction measures may only be allowed half their face value.   This determines the value placed on those company shares in investors eyes and has an effect on trading volumes.

All this is pure political gamesmanship - also known as " kite flying ".   The political party in opposition suggests a policy change to judge the levels of support or opposition.   It is a long way to the next election and if the findings are negative that policy can be quietly dropped by the wayside.
It is most unlikely that this blunt instrument of oppression will remain when the politicians finally face the voters !


Wednesday 14 March 2018

Coastal Property Owners - Beware !

The release of a management plan drawn up by Wollongong City Council will strike fear into the heart of property owners threatened by rising sea levels.  The state government is about to create more powerful coastal councils with engineering experience to improve the management of this risk.

Global warming is still a contentious issue with many people.   A former Australian prime minister and the present President of the United Sates have declared it " crap " and this is despite the findings of the scientific community.  The sea ice is retreating at both the north and south poles and the worlds glaciers are melting a lot faster than in the past.   All that melt water added to the oceans must increase sea levels.

We are experiencing a hotter planet, as evidenced by record summer heat, and this sea level rise will be conditional on the melting of the great ice sheets in Greenland.  The present estimates indicate a rise of 0.4 metres by 2050 and 0.9 metres by 2100.    That is enough to make storm surges more damaging and flood coastal properties that are presently considered safe.  Properties protected by coastal sand banks may see these penetrated and water pool behind them.  Residents will come to view weather reports with trepidation.  That desirable sandy beach in front of properties will become an enemy.

Wollongong is one of the first to have its coastal management plan gazetted by the government and it delivers alarming news. A number of valuable city properties within half a kilometre of the beach are expected to suffer severe water damage, and this includes the home ground for the Illawarra Dragons.  The beachside suburb of Thirroul has been named as particularly exposed with seventy-one properties prone to damage.

What does that mean for home owners ?  Up until now beach proximity has inflated home prices as a premium and a lot will depend on what edicts these coastal councils issue.   They may forbid demolition and re-builds on low level blocks and put restrictions on renovations.  It seems certain that this risk factor will deter buyers and we may see a drop in values if demand wanes.   There is also the expected reaction of the banks and finance houses.   Perhaps they may be more reluctant to offer finance for properties deemed flood prone.

This risk factor will extend to inland properties nowhere near a beach.  A rise in sea level also means a rise in the harbour and surrounding rivers and creeks, and that will have an adverse effect on storm water drainage.   When heavy rain coincides with high tide that water can backup and flood normally safe properties.  Owners will need to evaluate the risk on an individual basis.

We recently saw how this sea level rise delivered storm surge damage on Sydney's northern beaches. We can no loner just ignore the risk and do nothing.  The state government has bitten the bullet and taken steps to drag it screaming into the open.  Whether we believe rising sea levels is a myth or not it will very quickly have an influence on property popularity and value, and finance availability.

Tuesday 13 March 2018

The " Poker Machine " Menace !

Tasmania has just had a state election in which the removal of poker machines from pubs and clubs was a major issue.  The side of politics promising that change lost the election.   That seems to indicate that the opposition to the pokies is not as big an issue as opponents claim.

New South Wales was the first state to legalize pokies and we well remember the bus loads of eager players coming over the borders from Queensland and Victoria to enthusiastically play the machines in our sporting clubs.  The taxation input to this state's treasury was such that it was inevitable that this gambling method would spread to other states.

Now there is alarm that the concentration of poker machines is to be found in " working class "suburbs such as Fairfield, where residents bet $8.5 billion last year.  There is fear many people are addicted to the machines and this addiction is lowering living standards for their families.

To some degree, the laws in place should see the number of poker machines steadily decrease. Machines can only be transferred by way of sale and for every three machines bought, one must be forfeited.  Obviously, the one forfeited is the least productive machine and this provides an incentive to move machines to suburbs delivering the highest gambling turnover.  The owners want the bigger return from less machine numbers.

Gambling in its many forms is regarded as a vice and many years ago the only legal bets were those placed with a bookmaker at a race meeting.  The public urge to have a bet was satisfied by SP bookmakers operating from the back bar of most pubs and the taxation loss resulted in this state licensing the TAB.   Since then gambling has grown to include the state lottery, Casinos, Keno, and of course the Lotto games that are drawn on most days of the week.

Put simply, if we outlawed gambling we would need to pay a lot more tax to achieve the same level of state services, and gambling is an individual choice.  Many citizens rarely gamble.  Many others gamble moderately, and unfortunately some gamble obsessively to the detriment of the wellbeing of their families.  Wherever gambling is banned, it immediately resurrects itself as an underground activity.  Crime and gambling go hand in hand.

It also raises the question of personal choice.  We once had severe restrictions on when - and where - we could drink alcohol.   Today, more relaxed limits apply and we accept that some people abuse that form of freedom, but that is balanced by the mass of people who behave moderately.

The same applies to gambling.  If we banned poker machines it is certain that many would find other ways to waste their money, because that is the nature of humankind.   Anyone playing a poker machine knows there is a risk factor and the chances are high that the machine will win, but there is also a chance that "luck "will deliver a bonanza.

The best we can do is ensure that the ratio of pays to throughput is honest and ban seductive ploys such as celebratory music and optics when a "win "delivers less than the amount gambled.  Then it is up to the individual if that is their choice to lose their money.

Monday 12 March 2018

A Woman Hung Out To Dry !

Sledging has been part of the game of Cricket since that famous game in 1882 when Australia played England on their home soil - and beat them soundly. An anguished British newspaper - the Sporting Times - declared that " English cricket had died ".   The bails and stumps from that game were ceremoniously burned and ever since their ashes in  a jar have been the trophy of cricket played between these two countries.

Good natured sledging is traditionally comment on the ground with the hope it may unsettle a batsman and cause him to make a mistake.  Unfortunately, in this current series between Australia and South Africa it has taken on a more sinister role.  The aim has been to unsettle the Australian vice captain, David Warner by making insidious references to his wife, Candice.   This led to a near punch-up at the conclusion of the first test.

Over the years, the men who are sporting cricket heroes in many countries have gained notoriety for affairs with women.  Much of this has featured in the media, to the displeasure of their wives or girl friends left at home.   A cricket tour has become a conduit for almost unlimited booze and the availability of female spectators willing to share the limelight with their male heroes.   All that is taken with a nod and a wink as a reward for gaining that baggy green cap.

The slur that has enraged David Warner has been reference made to his wife's encounter with a football player in 2007, years before they met and later married.   At that time it received wide media coverage and this has led to hundreds of spectators arriving at the ground for the second test wearing face masks depicting that football player.   It seems that South African cricket officials are actually encouraging denigrating the wife of an opposing vice captain.

The women's movement has been furiously exposing men in positions of power using that power to coerce women under their control to agree to sex.  This medias spotlight has swept through movie studios and famous firms and seen offenders named and shamed - and often dismissed from positions of authority.   It seems that the day of men trading sex for leading movie roles or promotion along the seniority chain are over.

It seems strange that this same women's movement is silent on the treatment being meted out to Candice Warner.   This is supposed to be the age of sexual equality.   A young, unmarried woman is allowed to bestow her sexual favours where she wishes.  Is it equality to dredge up something that happened years before her marriage to embarrass her husband ?

Despite these claims of equality it is very obvious that there is a wide divide when it comes to sex.  A man was is sexually active and successful with a lot of women is regarded as a " stud ": a woman who is similarly sexually active is regarded as a " slut " !

Once - a long time ago - there was an unwritten convention that marriage drew a line under youthful indiscretions.  It is more than surprising that a casually insulting remark from one South African player has been seized on by the media and amplified to the point that it has become world headlines. It is equally significant that the women's movement has chosen to remain silent !


Sunday 11 March 2018

Holding Our Breath !

The sudden news that North Korean dictator Kim Jong-un has agreed to a face to face meeting with US President Donald Trump could be the breakthrough that will permanently avoid a nuclear exchange between those two countries - or it could enhance the danger if Kim Jong-un fails to gain the objectives he hopes for.

It seems perfectly clear that this initiative has come from the North Korean side and was a logical followup of the hermit kingdoms charm offensive when it agreed to take part in South Korea's Olympic winter games.  It would be reasonable to conclude that this was considered necessary because the sanctions imposed on North Korea are choking the life out of its economy.  China is now restricting the fuel flow and this is the one component that will bring the North Korean economy to a halt.

It all depends on what sort of carrot Kim Jong-un offers. His main objective is the lifting of sanctions and to gain that he will need to make concessions with his nuclear arsenal.  It is unlikely that he will agree to give up either rockets or nuclear war heads, but further development and testing may be on the table.  The problem would be verification.  North Korea has a history of reneging on past agreements and any agreement will certainly need the presence of independent monitors.

The North Korean objective may be ratification of its presence as a nuclear power - on equal terms with India and Pakistan. Both those countries gained nuclear status without the blessing of the UN Security Council and both are now sanction free, but neither is threatening other countries with their weapons. North Koreas is specifically threatening the cities of the United States and any solution reached will need ratification by world countries.  Russia and China may make difficulties because tension between America and North Korea is to their advantage.

Many people shudder at the prospect of Donald Trump facing across the table with Kim Jong-un on the Korean truce line.  Often the outcome itself is negotiated by aids and the leaders confrontation is merely a stage managed event..   Trump completely ignores his advisers and military commanders and follows no discernible policy directions.  Policy seems to consist of what thought occurs to him at that moment and this is usually promulgated by way of a " Tweet ".  This meeting could easily dissolve into a slanging match.

This is an event scheduled for May and in normal circumstances aids from both sides would prepare the way with consultations to set an agenda and gain agreements that might help decide the outcome. With two such irascible leaders that is an unlikely scenario.

The danger is that sanctions are probably making the survival of North Korea suspect and this has driven Kim Jong-un to seek this meeting against his will.  In the past, his country has negotiated terms to its advantage and then reneged on the obligations imposed.  If Kim Jong-un is prepared to negotiate his nuclear arsenal in good faith this could be an amazing break through.  If the meeting ends badly, a desperate North Korea on the verge of collapse will be a very dangerous animal in an unstable world.
The Chess pieces moved across this board are nuclear missiles !




Saturday 10 March 2018

Possible " Breakthrough " !

The near future seems certain to deliver massive change to humankind.  Within a decade or so the only cars on the road will probably be powered by an electric motor and we will have achieved the age of the driverless car.   Just as the internal combustion engine was reliant on petrol to achieve its dominance in personal transport, this coming electrical age is totally reliant on battery development to deliver distance in each charging cycle.

Right now, all our hope is concentrated on the Lithium-ion battery which still has a few outstanding problems, the least of which is its propensity to burst into flames without warning.  We are warned that while computers and electrical devices with lithium-ion batteries may be carried in the cabin on aeroplanes, they must not be carried in luggage in the cargo hold.  That risk is obvious.

There is also the problem of availability of the massive amount of raw materials needed to supply the quantity of lithium-ion batteries in our future.   Lithium is a finite mineral and its price has been constantly rising and cobalt is another essential in this mode of battery production.  Unfortunately, the main source of cobalt is the Democratic Republic of the Congo and this is engaged in a massive civil war.  The price of cobalt has risen to $80,000 a tonne and may go much higher.

Both the car industry and the makers of solar roof panels will rejoice at the news that scientists at RMIT have developed an alternative to lithium-ion which shows great promise.  They call it a " Proton battery " and its main ingredient is carbon, something that is both cheap and readily available in all parts of the world.

Creating a rechargeable batter from abundantly available low cost material is a massive breakthrough that may clear the main impediment to electric cars, and solve the problems on suppling electric power to our homes.  If those with solar panels on their roofs were able to couple it with batteries to provide power overnight when the sun was not shining, they could be self sufficient and not need connection to the grid.

The exact procedure to produce rechargeable electricity is not fully explained, beyond saying that it is similar to the process that delivers hydrogen fuel. Importantly, it produces no emissions.  There is the expectation that these batteries will deliver advanced technology which will be more than price competitive with lithium-ion competitors.

More importantly, the raw materials for batteries will be removed from the grip of becoming war loot in unstable parts of the world.  Many civil wars are financed by enslaving the civil population to mine a product that brings a high price on the world market.  The fast developing need for lithium-ion batteries was fuelling that situation.

It seems that the clever people at RMIT have made a breakthrough at exactly the right time with their development of a " clean  rechargeable battery " just as the world is turning to a massive need for this medium  !

Friday 9 March 2018

Sending a Message !

It is quite clear that an event that happened in the quiet English city of Salisbury was a message from the Kremlin to both the government of Britain and to those Russians sheltering in the United Kingdom who have reason to fear the reach of Russian intelligence services.

Russian immigrant Sergei Skripal (66) and his daughter Yulia (33) were found slumped unconscious on a seat in the city. They had visited several shops in the area and consumed a meal in a nearby restaurant and emergency services rushed them to hospital.  They are both critically ill and the doctors can only conclude that this illness was caused by contact with an unknown substance.

Sergei Skripal is an interesting character.  He was a colonel in the Russian military convicted of spying for the west and this included giving Britain's MI6 the identity of several Russian agents working undercover in the United Kingdom.   In 2006 he received a prison sentence and in 2010 he was pardoned and included in a spy swop in which each sides agents were exchanged.   He and his family then lived quietly and uneventfully in England.

The old Russian KGB was notorious for assassinations on foreign soil.  Many people still remember the murder of Bulgarian dissident Georgi Markov in 1978.  He was waiting for a bus when an assailant seemingly innocently jabbed him with the point of an umbrella.  This injected a tiny pellet of ricin and Markov died in hospital three days later.

More recently was the poisoning of KGB defector Alexander Litvenenko who had escaped to Britain.  It seems that Russian agents slipped a tiny amount of a radioactive agent into his cup of tea in a restaurant.  It was Polonium, to which there is no antidote and Litvenenko took weeks to die and no doubt the reported agony of his death gave great satisfaction to those in Moscow who ordered the killing.

While Skripal and his daughter linger in hospital investigators uncover some startling facts.  It seems that several other close members of his family have died in suspicious circumstances recently.  In each case the death has been unusual, but not sufficiently so as to spark a major investigation.  These deaths are now under intense review.

The message seems to be one of reminding those that fall foul of the Russian government that it has intelligence services with very long arms, and that they can - and will - reach out and repay treachery, nomatter where those people seek shelter.

The British identified the assassins responsible for the Litvenenko murder and they are subject to a world arrest order, but they remain safely within Russia and their government denies the charges.  No doubt those responsible for the Skripal incident will have fled the country and will be safely ensconced within Russia's borders.

What seems new is the extending of vengeance from the prime suspect to members of his or her family.   The reasoning seems to suggest that this will instill a new fear.  They may accept the danger to their own lives, but by extending it to their families it will make recruiting by foreign intelligence services more difficult.

There is also the numerous Russian millionaires who made their money after the fall of the Soviet Union and fled to Britain when Putin came to power and started to nationalise private companies. Most still have some financial interests in Russia and perhaps a little publicity on the reach of Russian security services may make them more amenable to demands from the Kremlin.

Perhaps ego gives Putin satisfaction reminding the countries that host defectors that his tentacles have no limits !

Thursday 8 March 2018

An Opportunity Wasted !

It seems incredible that we still have three sewage outfalls pumping raw sewage into the ocean. The discharge points are at Vaucluse and Diamond Bay in Sydney's east and the sea offshore is clearly contaminated.  It is a distasteful sight and it delivers a risk to public health as outlined in a report by Sydney Water.

The main reason this has been allowed to continue is because this part of Sydney is where the coastline consists of sheer cliffs with limited access to the water. Few people swim there so the risk is concentrated to those fishing from the rocky shore or spear fishing or scuba diving.  It is estimated that this is restricted to about two thousand such visitors a year.

Unfortunately, this untreated outfall is causing permanent damage to the ocean and that is because of what Sydney residents choose to discard by way of their toilet.   The ocean floor is building a residue of plastics such as sanitary products and wet wipes which do not dissolve and this is causing a" brown fuzz " , a mixture of algae, bacteria and hydroids, or a jellyfish like species.

It seems that these outfalls serve the disposal needs of about 10,500 people living nearby and this has been in place since about 1916.   Plans to build a treatment station have met resistance because of the nature of the works and the need for tunnelling which may cause damage to house foundations.

Continuing to pump raw sewage into the sea in this twenty-first century is not the image we hope to project, and it does raise a question about sewage disposal that caused a lot of excitement a few years back.   There were claims that we had advanced the treatment process to the stage where our sewage was safe for limited use on the agricultural scene.

It was still banned for use in horticulture and it was unlikely to ever be cleared for use in market gardens producing vegetables for human consumption, but tests were carried out spreading it on grazing land to enhance pasture for sheep and cattle.   The results were spectacular.   Former marginal grazing land blossomed with a heavy grass cover that was resistant to drought.  Once treated, this persisted for many seasons and it seemed the ideal answer to the problem of our sewers.  Instead of dumping waste into the sea we now had the ability to convert it into a valuable agricultural product that would drought proof grazing land.

We were treated to media pictures illustrating this miracle, but it seems that a silence has descended.  If we are still dumping what seemed to be a valuable product into the sea then questions need to be asked.  Why is it not finding its way to assist the grazing industry ?   Is Sydney Water putting too high a price on the product ?   Is there a transport problem getting it to market ?   Why is it not in general use in the farming community ?

It will certainly raise the suspicion that a government department may not have the expertise to successfully market a new product in a competitive commercial sector, and the surest way to stop those ocean outfalls is to convert that outfall to a source of income !

Wednesday 7 March 2018

Ruling by " Divine Right " !

In the early days of the world most countries were ruled by a king - and he ruled by " Divine Right " !  The power of all decisions was at his whim - and consequently he was a tyrant.  That came to an end in merry olde England on June 15, 1215 when the powerful barons of the aristocracy forced King John to sign a document called " Magna Carta " at Runnymede.   At the point of a sword the King  was forced to give up most of his power and decision making passed to parliament.

In todays world the rule of Monarchs has mostly ended. Republics with a president elected by the people have replaced Kings sitting on their thrones and most are subject to term limits.Over the centuries despots have set aside these limits and achieved unlimited power and this has usually led to war.  The history books record the carnage during the rule of both Napoleon and Adolph Hitler.

Political power seems impossible for some to hand to others and we are seeing some leaders cling to office by destroying challengers.  This is evident in Vladimir Putin's  Russia, Rodrigo Duterte in the Philippines and Recep Tayip Erdogan in Turkey.   They crush all dissent and give themselves more power.

What is ominous is the power structure developing in the world most populous nation.  Under Mao Zedong's autocratic rule China's 1.4 billion people suffered the " Great leap forward " which caused the loss of forty-five million lives to starvation, and the misery of the " Cultural Revolution ".  Following Mao, Deng Xiaphong introduced collective leadership and term limits, but current leader Xi Jinping has packed the executive of the ruling Communist party with supporters and quietly removed these term limits.  He now has the supporting structure to remain in power - for life.

The Communist rulers have imposed strict censorship on what citizens are allowed to see and to read.  So far the Communist state has concentrated on taking the country from agrarian to the world's workshop in developing export trade, but at the same time it has been expanding its armed forces to achieve parity with the United States.  It is evident that the first priority of this military force is to safeguard the rule of the Communist party in China and it would be ruthless in suppressing any internal or external threat.

Supporters of the democratic process are dismayed that American president Donald Trump has chosen to endorse the removal of term limits and the installation of Xi Jinping with dictatorial power in China.  In fact Trump has hinted that term limit removal is a course America might follow.

These events in China have altered the balance of world power.  The inscrutable Xi Jinping is the man who will take China where his mind decides it should go and that may be to the detriment of the existing world order.  The normal levers of restraint have become inoperative within the Chinese Communist party now that a supreme leader has gathered all the reigns of control.

Perhaps this leadership change in China will be seen as a reversal of the power change that took place at Runnymeade back in1215.   That dispersed power from a king and handed it back to his subjects. In China it has been concentrated in the hands of one man, who can dominate that country for life.


Tuesday 6 March 2018

SLOMO Law is Coming !

Recently two police officers received very serious injury when their legs were crushed while setting up a breath test station.  A driver who admits that his eyes were off the road for about twenty seconds while sending a text message crashed into the back of their parked patrol car and caught them between the two vehicles.   One officer has had his foot amputated.

This incident has caused the New South Wales government to draft what is termed a " SLOMO " law that will apply to traffic anytime they encounter an emergency vehicle with its warning lights flashing, parked at the side of the road.  They will be required to reduce speed to 40 kph and move over to clear the lane beside that emergency vehicle.

Obviously, this law is intended to enhance the safety of police, paramedics and fire fighters who may need to move about near their vehicle while attending to an emergency situation.  No doubt the law will be specific abut the distance before and after the parked emergency vehicle that this requirement will be required.

The interpretation will be quite different as it applies to high speed divided highways - and single lane each way suburban streets.  On a highway with a posted limit of 110 kph it is quite reasonable to expect drivers to slow to 40 kph and move to the right hand lane to give emergency workers a safe working space, but the situation is not so clear in a suburban street.

Here the speed limit is a uniform 60 kph and moving to the right lane of opposing traffic flow could be a fresh disaster.  Perhaps the requirement for safely passing a cyclist might be more appropriate - keeping a one metre clearance with emergency vehicles and reducing speed to 40 kph.

Cynics will complain that this is a law that could be abused by police.  On a busy long weekend with high volume traffic flow on our highways a police patrol car that pulls over a driver to book them for an offence would cause danger as fast moving traffic starts to change lanes to obey that law and reduce speed at the same time.  This law is specific.  Any emergency vehicle with flashing lights requires to be obeyed, even when that police car and its victim are safely in the breakdown lane.  If the officer chooses to use his or her radar to check obedience a lot of drivers just above that 40 kph requirement would receive a ticket in the mail.

Sadly, the incident that provoked this SLOMO law would not have prevented the accident had this law been in place.  The driver did not see the police car with its lights flashing because his attention was diverted to texting and his gaze was not on the road ahead.

There is a danger that this law might be misused in similar fashion to the " Roadwork ahead " signage with a speed reduction that is often left unattended for weeks - and sometimes months.   Often the delay is caused by the weather, but often heavy equipment is left with its warning lights flashing and these may be mistaken for emergency vehicles.

We need to be very careful in drafting this law that we do not create added dangers beyond the ones we wish to avoid !

Monday 5 March 2018

The " Wish List " !

The Snowy River scheme was a venture by the Federal government in partnership with New South Wales and Victoria and now the Feds are becoming the major player in a stand alone network that will opene up  east coast electricity generation when they buy out the states and take sole control of building what is termed " Snowy 2.0 ".

Snowy 2.0 involves the construction of new tunnels to allow water to be pumped back up hill.  When demand for electricity is low, this power will be used to pump water back to a higher level to enable longer demand to be met at peak times.  New South Wales is salivating at the prospect of receiving a four billion dollar refund cheque to pay out its equity in the original venture.

The state premier has unequivocally promised that this largesse will not be spent on Sydney projects and will be specifically ear marked for use in the rest of the state.  The bulk of the dividend from the sale of our electricity interest in poles and wires financed the introduction of the massive upgrade of the Sydney road system and the installation of rail improvements, including a new stand alone network that is servicing forgotten areas. The bulk of the money was spent in Sydney and this new bonanza for country New South Wales will have rural councils lining up with projects needing attention.

Heading the list will be the cities of Wollongong and Shellharbour and their surrounding Illawarra geographical area.  Their need is a rail tunnel through the escarpment to enable a fast rail link to Sydney.  Sydney is just eighty kilometres away, and the existing rail line has to climb the escarpment and takes one and half hours for the journey.

The existing line was constructed with horse and cart, pick and shovel  methods in the early eighteen hundreds and landslips force closure after even moderate rain.  It twists and turns and needs to bridge deep gorges, imposing slow speed limits.  At present both heavy goods trains and commuter traffic have to share this tortuous line.

It seems certain that this demand for a tunnel through the escarpment will include the restoration of work on the half finished Maldon-Dombarton rail link.  The thirty-five miles stretch of new line would enable goods traffic to be diverted from Wollongong to western Sydney and allow commuter traffic to have precedence on the Wollongong-Sydney link.

This is essential if the potential of the south coast is ever to be realised.  The coastal settlements stretching to the Victorian border have an inadequate road link and lack a rail service.  The ever growing population numbers make these improvements a necessity.


No doubt other state areas will have projects with an urgency rating and the state government will need to share this unexpected dividend widely.  There are very good reasons why that rail tunnel through the escarpment should take precedence.  It is the major obstacle preventing the growing south coast from providing a reliable commuter stream to divert pressure on new housing in metropolitan Sydney.  The existing line can not be upgraded and improved to obtain speed.

When a pot of gold is waiting to be spent, the horse trading to obtain a share will be intense.  Let us hope it is not divided too widely, and the benefits dissipated to the point of irrelevance.    That would be opportunity sadly wasted.

Sunday 4 March 2018

The " Gateway " Slams Shut !

For many Australians dreaming of owning their own business rather than being a wage slave toiling to make money for someone else, the answer to their dilemma is " franchising ".   In every suburb we see a range of national brand names offering products and services that are backed by national advertising campaigns.

One of the benefits of franchising is the expectation that the firm managing the franchise will provide the training to run that sort of business successfully.  Usually they carry out a survey of the competition around the selected site and control both the shop fittings and merchandising arrangement to the pattern that is successful in similar franchise stores.  The new owner and their family get the training to successfully operate this business model.

In the past, this has been very successful.  All those McDonalds Golden Arches are actually separate businesses run on a franchise basis .  A similar arrangements is in place with many of the other fast food name outlets that compete across the suburbs, and franchising has extended to many other aspects of the food and service industries.

Franchising is supposed to reduce the risk of starting a business on your own.  You get the wisdom of the franchising agent and put the store setup and outfitting in their hands - and you pay a continuing fee for the use of that national brand name that brings in the customers.  Usually, this new owner is mortgaged to the hock to get started, but with hard work they will earn a better than average living.

Many Australian franchise stores are under the control of the Retail Food Group as their managing agent.   These brands include Gloria Jeans coffee, Michel's Patisserie, and Cafe2U.   The RFG controls 1545 domestic stores and many of these are under pressure from rising rents and the under paying of staff in this business segment.

The commercial world was shocked to learn that RFG made a net loss of $87.8 million for the first half of 2018 and is under pressure from its bankers to improve its financial position.  It is evident that some franchise stores under its management are struggling and it seems likely that about two hundred may be forced to close.  That will be a financial disaster to families who have risked their entire assets in this business venture.   It comes at a time when Caltex, another big franchise operator, is withdrawing from the franchise business.

Like all forms of business, running a franchise has a degree of risk.  Getting a prominent site involves a decision on whether the rent asked equates with the expected sales volume and not every individual owner is temperamentally attuned to running a business.   There is even a degree of luck which dictates which business will succeed - and which will fail.

Often, a franchise business that is not making the grade is put back into contention when a new owner takes charge and improves the customer flow.   This bad news is gong to make the sale of franchises difficult and it seems likely that many will simply close their doors.  That would be a financial disaster for families that have sunk their entire assets into such a venture.

It is also likely that these failures will put a thrall across the entire franchise sector.  It has been a very successful way  of enabling an entrepreneur who succeeded with a new concept to market that concept on a wide scale and at the same time allow individuals to enter the business world as partners by copying that format.

The sight of empty shops in shopping centres will not enhance business confidence in the retail sector.

Saturday 3 March 2018

" Health Star " Ratings !

For many decades Australian Mums have given their kids a glass of  Milo in the expectation that it is a healthy drink.   Milo is made by respected food company Nestle and each pack carries a coveted four and half Health Star rating.

Sadly, Nestle has agreed to remove that accolade because of the presence of that dreaded product associated with the obesity epidemic - sugar !   Milo is composed of chocolate, malt based milk powder - and about half the content is sugar.

There is no doubt that Milo meets the approved guidelines for that 4.5 star rating if it is prepared according to the guidelines on the tin.  That calls for three tea spoons of the mix to be added to 200 ml of skim milk.  In many cases this is ignored and the drink is made with full cream milk and many kids enjoy it straight from the can or sprinkled on ice cream.   Under such circumstances, it does not meet the required health guidelines for that 4.5 health star.

This throws the spotlight on the entire health warning system, which was devised three and a half years ago to allow shoppers to measure the health aspect of products before they popped them into their shopping trolleys.  It is important that this star system have credulity and the Federal government is carrying out a five year review and there is concern that shoppers may abandon it if manufacturers manipulate it to their advantage.

The vast majority of star rated products meet the required standard but most would fail if subjected to uses that fall outside their guidelines.  Perhaps Milo is a case in point.  A family that does not have skim milk in their refrigerator and prepared this drink using full cream milk would still be supplying their kids with a far healthier treat than if the alternative was a can of soda.

If Nestle were to bow to the critics and label their product according to its health rating if misused it would need to carry just one and half stars - and consequently it would be rejected by those who buy solely on  health grounds.  There is a danger of becoming pedantic if all possible eventualities are taken into account when evaluating health ratings.

The two things that the medical profession urges us to avoid in excess are sugar and salt.  Sugar adds to obesity and too much salt is damaging to the kidneys.  We all know people who add several teaspoons of sugar to each cup of tea or coffee, and shake salt on whatever food is placed before them.  They claim that both add to the taste, and it is a habit that is hard to break.

Before we destroy the health star rating or make it meaningless, just think through that Milo example. Three teaspoons of Milo may amount to half that volume of sugar added to a glass of full cream milk. Compare the sugar content to that of a likely alternative, a can of one of the many sodas which are heavily discounted by their manufacturers.

The aim of science was sugar moderation, not its total elimination.  When fanatics get control of control measures, they usually do more harm than good !


Friday 2 March 2018

" Boarding House " Rejection !

The term " Boarding House "  usually gets a negative reaction from nearby residents. Usually they were big old houses that an entrepreneur had converted into low cost accommodation for those wanting just a bed, meals and use of a bathroom.  In many cases the clientele were restricted to men and such boarding hoses had an unruly reputation.

Today, they are few and diminishing.  Often the last remaining examples are either failed motels or old pubs that have been converted to single accommodation to wring a last income before demolition. Their reputation is not enhanced by the placing of released prisoners as guests as part of the parole process.  The residents are usually itinerant and a percentage with alcohol or drug problems is common.

That was not always so. In the distant past, many widows lacking an income turned their home into  a boarding house and took a small number of very respectable lodgers.   Most were good cooks and they provided plain but good fare, restricted to just breakfast and the evening meal.  With just a handful of paying guests these establishments went unnoticed in the community.

It is evident that modern boarding houses are a missing component on the city accommodation scene.  Renting a house or unit is beyond the resources of most singles and sharing is a necessity.  We are fast pricing the low paid who are essential to city services to distant commutes or to abandon city jobs because they are uneconomic.

A proposal to build a new venture specifically designed as a modern boarding house on Sydney's northern beaches has provoked howls of outrage from both residents and the council.  The objections are many and varied.  It is claimed that they would lead to congestion in the area and create traffic and parking problems.

The proposal is for a two story building with thirty-five rooms for individual lodgers, each fully furnished  and equipped with kitchen and bathroom facilities.  These boarding house room size requirements are less than would be required for an apartment building designed with studio apartments.

The surrounding community is vehemently opposed.   Nearby residents claim that they would have no idea of the type of characters who might take up residence in these developments.  They will be itinerant with no feeling for the community at large.

The other issue is car parking.  In the past, the residents of boarding houses rarely owned a car.  That is now reversed.  It must be assumed that all people seeking personal accommodation will have some sort of vehicle at their disposal, and they will need to park it in proximity to where they live.   It is unlikely that a new boarding house will have adequate parking for each proposed resident.

That is precisely the problem when an owner subdivides a three bedroom apartment into " pods " and crams in a large number of residents - at enormous individual rents.  Both the kitchen and bathrooms are shared and overcrowded, and the street outside is crammed with cars.  This is usually why nearby residents bring this illegality to council attention

It is obvious that the siting of boarding houses in suburbs with a good quality of life will be vigorously resisted.  That opposition will wane should they be restricted to suburbs more appropriately suited to such structures, such as industrial areas and transport hubs.

Sadly, the boarding house is a logical concept for housing individuals who want the benefits of provided meals and serviced living accommodation - and wish to enjoy the views and facilities that most of us enjoy.   Provision of such facilities seems assured of intense opposition anywhere the demolition of an existing house is proposed as the site of such a new construction.

It seems that the tribe of the suburbs have spoken with a united voice !


Thursday 1 March 2018

The " Mini Degree " Era !

Our working world has certainly changed and there is the expectation that it will change a lot more in the years ahead.  We are told that the average person will probably make several career changes in their lifetime and perhaps our present university system needs to change to meet that need.

The present university system is geared towards the needs of the past.  School leavers need to attain the Higher School Certificate  level to qualify for a place at University and then spend several years gaining a diploma.  That qualification is necessary for entry into many professions and in the distant past, that assured the holder of a better than average income.

A different future is envisaged by Bruce Reed who was former President Bill Clinton's top domestic policy adviser and chief of staff to vice president Joe Biden.   Mr Reed is scheduled to address University leaders in Canberra.

There is no doubt that we are heading into a future in which robotics and automation will play an ever increasing part.  The impetus is likely to change away from young people gaining a general life skill to  older workers repeatedly coming to university to learn the particular skills that will allow them to serve in this ever changing workplace.

The future is likely to be " mini degrees " - earned in a matter of months and applicable to aspects of industry as they emerge.  This is illustrated with the needs of the computer industry.  Its expansion is reliant on coders and these specific skills are in high demand.  At present they are a part of a general course over several years when gaining that specific skill would better serve an individual looking for immediate placement where such skilled workers are scarce.   Such a worker would return to university for an upgrade as that vocation technically advances.

It is quite possible that what used to be called TAFE will become an integral part of university culture providing this form of advanced learning by way of evening courses to allow retraining to coincide with earning ability.  Instead of reaching an overall standard in a number of years the need will be for specific skills, earned in a far shorter period to qualify for the fast developing needs of individual industries.

It is likely that this provision of mini degrees will run in tandem with diploma courses.  That diploma will still be necessary to enter many professions but there is a new need to train the unskilled to a standard where they can slot into emerging industries with specific skills that make them employable. In particular, where jobs disappear because of new technology it is important that the work force gain new skills to move with that progression.

We are moving into an entirely new cycle of industrial progress in industry and this brings with it the need for new skills.  Along with staff trained in individual disciplines there will be a need for operatives who can operate, maintain and service the componentry of these new industries.   To do that, they will need training to far less than diploma standard.  Our universities need to revise their curriculum to meet that challenge !