Sunday 31 May 2020

The " Permanency " Issue !

One of the main differences between the unions and employer groups is the issue of " casual  workers".  A casual worker is insulated from the benefits enjoyed by a permanent employee, who gets annual leave, sick leave and in todays's world - carer leave.   In compensation for that loss, the casual gets a pay loading which is usually twenty-five percenr higher than the wage for a permanent employee.

Unfortunately, that distinction between "permanent " and " casual " has a direct bearing on how workers progress in our society.  The banks are more likely to grant a loan to a permanent employee and most casuals find it hard to negotiate a mortgage on a home they wish to buy.

The employer is more inclined to use casuals because firing a permanent worker if the business cycle slows can see the matter go to a court hearing.  The finding can be unexpected and the employer left seriously out of pocket.  Terminating a casual avoids that danger.

That is the situation that sees many jobs filled on a " casual " basis when exactly the same person performs the same work, day after day, creating the term "permanent/casual ".   Employers were recently shocked when a court decreed that such people have the right to annual leave, sick leave and carer leave despite their pay having a loading for the loss of that benefit.

The unions plead a rational case that casual workers lead a stressful life because their employer can sack them at a moments notice.  It is this uncertainty in their employment record that influences banks and credit agencies to have a higher regard for opermanent employees over casuals when approving loans.

This issue comes at a critical time with the economy starting to come out of isolation from the coronavirus. It raises the question of whether that loading should still apply if casuals with a degree of permanency are also able to claim annual holidays and both sick and carer paid leave.  Many casuals have that loading built into their financial budgets and its removal would leave them bereft.

This is building to a confrontation between the government and two of the biggest uniions.  The Australian Workers Union and the mining division of the Construction, Forestry, Mining, Maritine and Energy union will argue that giving more casual workers the right to ask for permanent employment is not ernough to compensat for not having secure empoyment.

A way out of this recession and a return to full employmentprobably hinges on some sort of compromise that meets both sdes part way !


Saturday 30 May 2020

The Close of Print Media !

The announcement that over a hundred regional and suburban newspapers will either close completely or change format to digital only will tend to isolate the news cycle to what people choose to believe on Facebook.

Unfortunately, this retreat has long been inevitable in our changing society.  Newspaper prices go ever higher as less and less customers order daily delivery and the advertisers who previously  filled their pages have either turned to other media or cut back on their advertising budgets.  As a result, newspaper news rooms are no longer the voice of ordinary people.  It seems that old habit of " writing a letter to the paper " to air a grievance has fallen by the wayside.

There is no doubt this move will result in massive job losses and the specialization of the skills required will be hard to blend into other industries.  What the nation will lose is the presentation of comment in a dispassionate form which allows the reader to absorb the facts and make up their own minds. Most newspapers have a political slant, but it is the editor's job to see that subject matter is presented fairly and in detail.

The local newspaper was usually considered the " voice of reason " amid the cacophony of weird ideas spewing forth from Facebook.  One of the detractions of Facebook is that it urges contributors to gain " followers " and that means a gaggle of people with similar ideas.   Once someone has settled in as a follower there is little incentive to break ranks and voice opposition to a weird idea their leader is promoting.

It is thought that this was instrumental in developing anti vaccination clusters which have played havoc with national plans to innoculate children against the range of diseases which we have under control, but are waiting in the wings to make a come back.   Eventually, we will have a vaccine against this coronvirus and it is very likely that the anti vaccine crowd will actively campaign against its use.  Even the best advice from leaders of the medical profession is ignored.

It seems that in future the " news " will consist of ten second " sound  bites "  that are a feature of television news.  Rarely do these stories have depth and most viewers quickly gain either acceptance or rejection based on initial story reaction.   We are about to lose the  opportunity to turn to the local newspaper for a balanced report on the issue involved.

It is fairly evident that Facebook is open to manipulation by overseas espionage agencies which use linked computers to show a plethora of " likes " for a point of view that is mostly ignored.  This can be effective in swinging the vote when elections are expected to run closely and it is difficult to prove in the anonymous web of the internet.   The loss of those print edition newspapers will make " thought impression " on Facebook a more powerful manipulator of public opinion in the years ahead.

Friday 29 May 2020

A Basic Health Question !

One of the unmistakeable  effects of global warming in Australia is that summer will get longer - and hotter.   The bushfire season will start earlier and last a lot longer.  Our schools are becoming meticulous in insisting that pupils wear hats and the modern school playground has many shade areas.

It seerms incomprehensible that in its plans for the redevelopment of the old Olympic pool, North Sydney council is proposing to scrap plans for a shade areas over the children's pool.  This is a massive develoment with a cost of $58 million and includes upgrades to all the existing pools, a " family leisure " pool and a new grandstand.

The reason for deleting this important safety feature is concern that its plans will be rejected on heritage grounds.  The plans that have been set aside called for a steel framed shade structure and the planning committee feared that this would draw the ire of heritage supporters.

It seems that because the original pool was not shaded from the sun any move to provde this cover now will be considered a breach of the heritage guidelines.  That was an entirely different era when young people were urged to get out in the sunshine to improve their health.   The beach scene was a mass of people trying to improve their tan by rubbing in coconut oil.  Most were oblivious to the risk of skin cancer that sun exposure caused.

The incidence of deadly melanoma  is the highest in the world here.  The Cancer Council is very concerned that this pool upgrade looks likely to go ahead without shade protection.  Much of their budget is spent urging Australian people to take precautions against exposure to the sun and it is disturbing to see a shade cover rejected on heritage grounds.

The heritage watch dogs do a great job seeing that memories of our past are preserved for today's generation to enjoy, but their powers to stop progress definitely need limits.  It would make more sense if the medical fraternity was the party refusing approval of the Olympic pool upgrade because the plan did not feature a shade cover.

If the issue comes down to a decision between preserving the outlook of the past or providing a valid health cover there is no doubt which thinking people would consider the most important.  In this instance, that decision was not left to the arbiter.   The council just threw up its hands in contemplation of the uproar and back biting and scrubbed out plans for the shade cover.

Hopefully, that children's pool upgrade will not progress further without that shade cover being an integral part of the design  !

Thursday 28 May 2020

Medical Mayhem !

The first law of commerce decrees that if something is in short supply, the price immediately increases.  This virus pandemic has created a shortfall in most medical supplies and many manufacturers have used this golden opportunity to hike their prices.

Our hospitals have some protection because they have access to government stockpiles bought under contractual arrangements, but for those outside that perimeter world demand makes medical supplies a sellers market and essentials like face masks are selling at premium prices.

This price inflation is most keenly felt by pathology laboratories,  aged care facilities, Community health centres and any newly formed medical facility that had not had time to establish contractual arrangements with suppliers.

Pathologists report that protective gowns that sold for $1.65 before the pandemic are now costing as much as $ 13.27 and nasal swabs have increased from 50 cents to $3.   Perhaps the most essential of all protective items - disposable gloves -have tripled in price, protective masks have increased five fold and alcohol swabs have gone from $50 to $99 a pack.

It seems that personal protective equipment - PPE - has attracted entrpreneurs who scent quick profits from this health crisis.  COVID-19 has brought " carpetbaggers and snake oil salesmen " out of the woodwork and many manufacturers are facing rising costs as they try to ramp up production to meet market needs.  In particular, freight prices have also increased sharply as a result of the need for faster deliveries.

The fact that this is a world pandemic has added the price incentive of a huge surge in demand.  It is not uncommon for supplies being loaded on a plane for delivery to Australia to be put on hold because of a higher priced bid from another country.  A lot of companies lacking experience in the production of medical supplies have entered the field and consequently the quality of their output can be suspect.

One of the main victims of this price inflation is the independent general practitioner running a suburban practice. This is rarely tied in to contractual supply and is usually served by several suppliers competing for trade.   The cost of running such a practice has increased sharply because of this price inflation and shows no sign of returning to stability.   A similar price impact is hitting the aged care industry which is under government control in the care cost it charges residents.

Suppliers of PPE should remember that this pandemic will end, and the people they ripped off will have long memmories.

Wednesday 27 May 2020

Making It Clear !

This years bushfire summer dominated the television news and we experienced week after week of scorched earth and burning homes.  Lives were lost and night after night we trawled through a vista of the smoking ruins of what had been someone's home.   In some places the residents had to wade into the sea to escape the fires.

That certainly put Australians in a donating mood and when popular comedian Celeste Barber appealed for donations the money began rolling in.  This appeal was more successful than she imagined and when the final tally appeared on the board she had raised fifty-one million dollars, and that's when the legal troubles started.

Celeste  Barber raised money for the Rural Fire Services and Brigades Donations Fund and at the time of donation the exact criteria of the disburstment was not clear.  It seems some people thought they were donating to help the victims of the fires while Celeste thought the extraordinary amount of money collected might be distributed to other charities or fire services in other states.  It very quickly was frozen, awaiting a direction from the New South Wales Supreme court.

That court has now delivered its verdict and the money can only be used to setup a fund for Rural Fire Services fire fighters who are killed or injured.  The NSW RFS  Commissioner has reported that the service planned to use about fourteen million to upgrade safety equipment, including respiratory protection and helmets, and twenty million  towards upgrades for local brigades, with the remainder undecided.

This decision underlines the importance of setting   clear objective when appeals for public funds are proposed.  This appeal commenced when vivid memories of what we had witnessed on news broadcasts was fresh in our minds.   In its finding the court said " some of the donors might have intended or hoped that their money would have been used for purposes outside of what the court has permitted, but the law provides principles surrounding trust funds and the court applied those principles ".

It is this Supreme Court that decides how a  persons assets will be distributed if they die without making a will and probably more people do die without leaving a will that makes their intentions clear.   Many people believe that they can only make a will with the help of a lawyer and some lawyers charge several hundred dollars for that service.  Shop around and ask for the price first and you will find many offering very moderate fees.

Blank will forms are also sold by newsagents for a couple of dollars and they contain the legal wording required to execute a will.  All the person making the will has to do is clearly identify himself or herself, and state to whom those assets be distributed, and name who is to ensure that happens.

Hopefully, the chaos that surrounds distribution of this fire fund donation appeal will convince people to make a will and it is also important that it be found when they die.  Once made, it would be a good idea to lodge it with your bank or the public trustee.   Perhaps more importantly, those will forms sold by newsagents are perfectly legal documents and making a will should never be constrained by cost.  One written in your own hand and properly witnessed is all it takes  !

Tuesday 26 May 2020

The Diabetes Risk Factor !

One of the side affects of this virus pandemic is a sharp dropoff in the number of patients seeing their GP.  Probably a combination of not wishing to sit in a waiting room with other patients who might have the virus or the belief that doctors will be unusually busy and their routine medical needs can wait until the crisis is over.

Research from Melbourne's Baker Heart and Diabetes Institute suggests that people with type 2 diabetes are more likely to be diagnosed with  some of the most deadly types of cancers and are sixty percent more likely to go on to develop dementia.

This finding comes as referrals to Australia's leading oncology centres have plummeted by up to thirty percent and diabetes testing has dropped by a third.  There is concern that many seriously ill people are going un-diagnosed.   Pathology and radiology tests have also declined by more than seventy percent as thousands of Australians avoid seeing their doctor amid fears of contracting  coronavirus or not wanting to burden health services.

This survey examined the health outcomes of more than two million people diagnosed with type 2 diabetes.  It found that people living with this potentially deadly disease were up to three times more likely to develop pancreatic cancer and twice as likely to develop liver or endometrial cancer. They also had a fifty percent chance of being diagnosed with  bowel cancer and a twenty percent greater risk of breast cancer.

Experts are seeking to determine why there are these higher risks but it seems likely to be tied to the role of insulin , the body's key  hormone in regulating blood sugar levels, fuelling cancer growth.
Cancer cells lover sugar so there is the suggestion that increased sugar levels mean there is plenty around for cancer to grow more quickly.

It seems clear that the disruption to normal medical testing levels caused by the coronavirus will have an aftermath that will show in following years.  Dementia and Alzheimer's are the leading cause of death among Australian women and heart failure is the leading cause of mortality associated with type 2 diabetes.

It is vitally important that people get tested and receive treatment for diabetes.  It is becoming abundantly clear that untreated diabetes is the entry point for a whole lot of other diseases that are life ending.   If we are not very careful our ever extending lifetime in years will come to an end and go into reverse.

If diabetes is the gateway to cancer and dementia, it is a gate we can quickly close simply by making regular visits to our GP for testing.



Monday 25 May 2020

Return Of The " Drive-in " !

Scientists warn that the Coronavirus may never be completely eliminated. We may never be able to return to the days when vast crowds watched sporting events or it was safe to dine in fuggy restaurants where patrons were seated close together.  We appear to be heading into an era of partial isolation where the wise will keep a safe distance from one another.

One of the casualties of this pandemic has been the movie industry.  A lot of money has been invested in movie theatres to create the big screen and big sound effect that attracts viewers.   At the moment they are shut and there is a big doubt that they will ever regain their former glory.  The movie industry has moved to a new genre of showing its wares to smaller audiences via television or smartphones.  The thrill and excitement of a night out at the movies seems relegated to a previous era.

Sixty years ago we experienced the phenomenon known as the " Drive in ".  The family car provided the seating and when you parked it in a designated outdoor theatre a rather tinny speaker on a post brought sound to your car.  The movies were shown on a giant screen and this became a very popular form of entertainment.

Those drive-in venues are mostly long gone.  Land costs and housing demand made them targets for developers but today's sporting venues are surrounded by massive car parks that could easily be converted to the drive-in movie theme and the modern car has an integrated sound system that could handle the movie dialogue.  That presents a challenge to the clever people who made movie theatres such a thrilling experience.  Science has moved a long way since the era of movie projection used in drive-ins so long ago.

The drive-in has a huge benefit in the era of virus infection.  The family sitting in a car watching a movie has no direct contact with other people or a need to use public transport to get to and from the theatre.  More to the point, those car parks deemed so essential to getting crowds to sporting events stand empty for most of the time.  The land value would be enhanced by a return of the drive-in venue on the nights no sporting activity is scheduled.

Once again this presents opportunity for the entrepreneur.  It will take investment to get venues ready for a drive-in role and the land owners will expect some reward for its use.  If their demands are too greedy it will impact on entry prices to the detriment of the project.  In particular, this may be the golden opportunity for the horse racing industry.  It is mainly a day time industry and it has vast car parking areas adjacent to race tracks.  Putting that to use as a drive-in venue would be a creative way to create a public benefit by way of making use of something that is normally idle.

Sunday 24 May 2020

Creating a New Image !

The Deputy Leader of the National party has called for a boycott of Target branded stores after owner Westfarmers announced that the struggling brand would either close or be converted to a new operational entity.  Target runs 167 mainly country stores and 1300 jobs are at risk.

It is quite obvious that if customers heed  David Littleproud's call it will mainly ensure that this modification plan will occur more swiftly.  As things stand, Westfarmers intend to convert  ninety-two stores to the K-Mart brand and the number of stores that will be closed is uncertain.

Economic forecasters have reported a loss of trade across the Target range for quite some time and this revision is not unexpected.   Many Australian clothing chains have been experiencing hard times and withdrawing from the market and the trend to buy discounted goods online is the component mostly blamed.

Selling mainly clothing is tricky business that relies on two things - price and fashion.  Most chain stores are discounters, but stores quickly gain an image in customers minds and it seems that the  image Target now has does not go down well with country customers.   In comparison, K-Mart which mainly operates in suburban city shopping malls is doing quite well and moving merchandise.  It has managed to create a different image to Target.

Perhaps the logical answer to the Target problem would have been an upgrade of the type of stock it was offering but that is a time consuming way of making change.  It seems country customers have rejected the Target image and no longer visit the stores.  When those hoardings go up announcing a brand new store the image counter is set in neutral and it awaits the customers reaction to the goods on offer.  Westfarmers are wagering that goods that sell well in the city will attract similar custom in country areas.

The SDA Union which covers workers in country areas believes a boycott will only make the situation worse, underpinning the efforts of both the SDA and Westfarmers to keep workers in the region in jobs and provide for their families.  Any business that fails to trade profitably is due to fail and it is now obvious that change is inevitable if Target is to be restored to good health.  The name will simply disappear and be replaced with a new entity offering a different range of merchandise.

At least this is a positive move in an age when some competitors are simply withdrawing from the market place.  Some of the pitfalls of internet shopping are becoming apparent to the public and the advantages of brick and mortar stores is being reinforced.   That old shibboleth of being able to actually handle the merchandise at the point of sale is again coming to the fore.  If Westfarmers have done their imaging well we are about to see a new era in country stores.

Saturday 23 May 2020

A Domestic Violence Issue !

Marriage was supposed to be a union that lasted for a lifetime but in todays world an ever increasing number end in divorce.  It seems rare that divorcing couples conduct their separation with civility and good manners and in many cases family and friends see signs that the coming split is likely to contain an element of violence.

That violence is something that regularly concerns the police.   Many police callouts occur when neighbours report fighting next door and there is hope a police presence may induce calm.  It is a thankless task and all too often the couple reconcile and continue to live together.  At best, the police can ask the court to impose an AVO to keep the warring couple apart, but that takes time and is often ignored.

Once again such a dispute ends with murder.  Police attended an address in Sydney's west to find a deceased woman in the hallways outside her bedroom with a serious cut to her throat.  Her partner was nearby and was promptly arrested and charged with murder.  It was learned that the police had previously attended what was termed a " domestic dispute " and an AVO was in the process of being issued in a local court, and was subjected to delays.

Sadly, the young couple concerned originated from India and the woman was studying at university for a degree while her husband had part time work.  They married in India in 2016 and came to Australia two years later and had no family support in this country.  When their relationship degenerated into violence they had no other option than turn to the police for assistance.  The powers invested in the police in such instances are limited.

An AVO is intended to bring about an enforced separation of the warring couple as an emergency measure to end the violence.  That only works if it is obeyed and in many instances there is complicity in the couple setting it aside because of the financial difficulties involved.  Trying to arbitrate domestic disputes is a thankless task that wastes a high degree of police time.

Now it seems a law change is about to force victims of domestic violence to gather their own evidence.   This is being imposed without either prior warning or consultation and will make  many  relive the harrowing experiences that preceded hospital admission.

A group of community legal centres and family violence organizations has written to the government opposing this change which is being done with the aim of introducing simplicity.  It was hoped that bring about the consolidation of relief phone numbers and allow victims to choose their own counsellor.

It will do nothing to reduce the number of domestic violence situations that end with a death and a murder charge  !

Friday 22 May 2020

Ending " Permanent/Casual " !

A ruling by the Federal Court looks like costing employers hundreds of millions of dollars.  It throws the definition of a " casual " in doubt just as the Australian workforce is about to resume employment as the virus lockdown is starting to be lifted.

The court found that a " casual " worker who worked regular and predictable shifts with a firm advance commitment to work were not casuals and were entitled to be paid annual, sick and carer's leave.

This ruling has shocked employers.  Many feel it opens the door to " double dipping " because the hourly rate paid to casuals is usually twenty-five percent higher than for permanent employees to compensate for the paid leave loss.  If casuals are to be treated as permanent employees it will throw the whole idea of employment consensus into review.

The Australian Industry Group  which represents sixty thousand employers , said the decision would discourage employers from bringing on casual workers and  hurt the economy.   In recent times the permanent/casual has become an integral part of the Australian workforce because a major part of the business world simply does not have enough work need to employ a full time person.  As part of the " Gig  " economy, many casual workers had a variety of jobs that occupied their full working day.

Many employers are wary about moving a casual to permanent employment because of the court's attitude to dismissal.  Dismissing a permanent employee can be time consuming and costly if a business downturn makes that necessary.  It also necessitates meticulous record keeping to ensure that employment rules are accurate and that is avoided and replaced with a pay loading to compensate casual staff.

The casual employee is the  employers answer to the vagaries of the market place.  Several might be needed to cover a peak of business activity but employing even one permanent employee would be surplus for most of the business day.  This ruling seems certain to cause changes in business style to dispense with casuals.  Some restaurants may opt for counter service and do away with table service to reduce the work load.  The use of labour saving technology will become more attractive.

The timing of this ruling is critical.  We are starting a tentative emergence from this lockdown and most families have depleted their savings to some extent and may be in an austerity mood.  Many businesses will rely on casuals until they see which way the economy is going and the court has seen fit to throw doubt on the legality of offering casual work which does not include paid leave.

The fear in the business world is that employees who have been on a casual basis and paid a loading  may turn around years later and claim the entitlements of a permanent employee.   That loading was supposed to be compensation for the lack of paid holiday time.  What the court has done is throw a doubt on the legality of the way many small businesses  run their trading operation.

This ruling is unlikely to generate many new permanent jobs, but it is likely to make casual work much harder to find.  Many permanent/casuals will wonder if the court actually did them a service  !

Thursday 21 May 2020

The Leadership Issue !

China's threat to impose an impossible tariff on Australian barley imports has become a reality, despite 120 nations in the World Health Assembly backing that enquiry into the origin of the Coronavirus.  Faced with that sort of opposition, Chins has reluctantly agreed to back the resolution to avoid being isolated.

China's opposition to any sort of investigation into the origin of COVID-19 is suspicious.   It originated in China and quickly spread to the world.  There is no doubt that Chinese inaction in imposing a lockdown allowed it to escape and the end result is the virus throwing a spanner into the regulated world pattern of trade.  The need for isolation threw million of people out of work across the world and that could be to China's advantage.

There is no doubt that we are facing a recession.  Spare a thought to all those loans the Chinese have been splashing around to developing countries and which are geared to repayments.  In the event of repayment shortfalls, other options are " negotiable ", and that often resolves into Chinese access to ports or commerce bases in other parts of the world.

There is no doubt that China intends to dominate world trade and its philosophy is to steal trade secrets from other countries.  A lot of world renowned companies have been weakened by this recession and a China flush with money from its export successes is poised to take advantage of the opportunities offering.

During the Korean war, China backed North Korea and Chairman Mao was reckless with Chinese casualties by ordering numerous suicide charges.  Some may wonder if the Chinese that died in this Coronavirus pandemic were sacrificed to create a world recession that would enable China to make advances by weakening western economies.

The lure of China as the workshop of the world caused many manufacturers to move to China and the price of access was revelation of trade secrets.  Basically, we shared our knowledge and trained their workforce and China is using the universities of the west to create the knowledge revolution that is making China the source of new technology.  It is our universities that are expanding Chinese minds and which made the west the entity that powered the world.

This Coronavirus may be a natural phenomenon, but the inability of the west to reach consensus on trade issues favours China.   Our Treasury depletion to shelter workers in this coming recession will weaken our recovery and allow further Chinese industrial intrusion.  We will be subjected to the Chinese maxim of " divide and conquer ".

This situation is maximised by the lack of a western world leader.   The post of " Leader of the free world " seems to be vacant.  We await the emergence from the shadows of a man or a woman who will claim that title  !

Wednesday 20 May 2020

Locked Out !

We have shared the anguish of residents of Mascot Towers who were ordered out of their apartments when cracks in the building suggested an imminent collapse was possible.  At least they had a few good years of residence before the problem suddenly resolved into a dispute over who would pay the remedial costs that will run into millions of dollars.

Spare a thought for the owners of apartments bought off the plan for prestige buildings in Erskineville which were completed in April 2018 and remain vacant because of a dispute over the contamination of the land underneath the buildings.   Two years later, a settlement brings them hope that they may finally be able to make use of those vacant apartments.

The Sugarcube Apartments and Honeycomb Terraces have finally reached agreement with the NSW Environmental Authority that " no unacceptable risks from the contamination that remains on the property ".  The long suffering owners will be allowed to move into the Sugarcube with occupation of Honeycomb Terraces to follow at a later date.

These prestige buildings were proposed on what is known as the Ashmore estate.   It had seven decades of prior use as the Metters factory which manufactured kitchen appliances and the land contained toxins which included  heavy metals, hydrocarbons and asbestos.   Council alleged that the developer had not complied with the consent conditions regarding remediation of the site before construction.

This proposed staging will provider a suitable pathway that enables the occupation of the site in an orderly fashion... without substantial further delays.  The agreement makes the City of Sydney and future residents responsible for future monitoring of the site.

This was the problem facing buyers who in good faith bought apartments off the plan and watched the building arise.  No building faults were suggested, but on completion access was denied because it was claimed that the land underneath had not been properly restored to good health.  Access might have been denied indefinitely until some sort of arrangement finally overcame the obstacle.

This sort of thing destroys buyer confidence in the integrity of new constructions.  There would be a very reasonable assumption that site remediation would be complete and approved before construction get under way, but a major construction reached completion before the buyers were denied access to the homes they had purchased.  This has caused financial loss and probably damaged the building integrity in the eyes of future buyers when apartments come up for resale.

It sends a clear warning that we need to do better.  It is the job of the consent authorities to make sure the site remediation has been complied with and that construction of the building adheres to the relevant ordinances as each step is completed.  It is expected that work will be inspected and a sign off negotiated at each stage which ensures that the building has met relevant work standards and is ready for occupation.

Usually, the purchase of a home is the biggest financial transaction any citizen makes in a lifetime and that needs a degree of protection.   The fact that construction faults are making later appearances and sites are found to be contaminated is a clear indication that our building inspection  regimen  is  not meeting the required standard

Resolving that dilemma should be an obligation beyond the machination of party politics  !

Tuesday 19 May 2020

A COVID-19 Breakthrough !

It looks like an important breakthrough in treating COVID-19 has been made and it could explain why this pandemic is particularly deadly for the elderly.  Specialists at Britain's Royal Brompton hospital established a link between  COVID-19 and clotting by using hi-tech dual energy CAT scans of the lung function of their most serious patients.

All those tested suffered a lack of blood flow, suggesting clotting within the small  vessels in the lung.  This partly explains why some patients die of lung failure through lack of oxygen in the blood.  Low oxygen levels have been regularly recorded in COVID-19 patients reporting no breathlessness.

This does explain the extraordinary clinical picture that is being observed with people becoming very hypoxic., very low on oxygen and not being particularly breathless.   That would fit with it having a blood vessel origin.

England's National Health Service is about to issued hospitals with fresh guidelines on blood thinning, which is likely to lead to carefully administered higher doses for the critically ill.  Doctors involved in these findings warn that care is needed in the use of blood thinning medication, which in itself can have deadly consequences.

This could establish a link between the varying COVID-19 death rates involving groups of elderly patients.  It is quite common for the elderly to be prescribed blood thinning medication if they are prone to blood clots which can lead to strokes.

Initially, it would be rewarding to compare the elderly who died and the elderly who recovered to determine blood thinning records.  If those who recovered were using blood thinning medication it would suggest that this delivers a valuable aid that can judiciously be used to help quell the pandemic.  The highest group suffering death from COVID-19 are clearly those in the oldest age grouping.

In particular, this virus is deadly if it penetrates an aged care establishment where big groups of elderly citizens are housed closely with one another.  We have had instances where infection has spread widely and multiple deaths have occurred.

It could also help to explain the reluctance of many people to obey the personal isolation restrictions.  To the vast majority of people this virus delivers a bout of flu from which they will recover.  The death rate amongst children and younger people is particularly low in comparison with the elderly, breeding indifference to safety measures.  This will have importance once the lockdown ends.

In the absence of a vaccine this is indeed good news.  It suggests a possible way of preventing COVID-19 coursing through aged care facilities or perhaps insulating the elderly scattered in the general community, and it has come at a good time with restrictions being eased.

Monday 18 May 2020

Rethinking Air Travel !

It must be a very uncertain time for the world's aircraft manufacturers.  This world pandemic has seen air travel reduced to a crawl and many airline companies are on the verge of bankruptcy.  Literally thousands of perfectly airworthy aircraft are laying idle and many are being stored in desert parking lots that stretch for miles.

The big question is whether the passengers will return in sufficient numbers once this pandemic ends.  It is a very unhealthy option to cram passengers together in an aluminium tube that has them breathing recycled air for hours as they cross oceans.  Those same passengers claim discomfort and only accept air travel because of the time factor and the low seat prices.   That does open the door for other options.

In the early days of aviation the airship looked a promising alternative.  They offered an ability to move big passenger numbers in spacious cabins but the negative factor was the presence of hydrogen gas to provide the uplift.  This very volatile gas saw the demise of many airships, including the spectacular explosion of the German airship " Hindenburgh " as it landed in New York in an electrical storm.

Helium gas provides equal lift to hydrogen, but is inert and not prone to catching fire.  The airship travels slower than the jet airplane, but the ability of passengers to move around and be entertained rather than confined to a constricted seat would appeal to many people.   We have seen the return of cruise ships travelling sea routes gaining immense appeal and perhaps similar air travel conditions would generate customer demand.

All those redundant aircraft sitting idle will attract interest from companies thinking of entering the airline business.    The sheer numbers offering will sharply reduce asking prices and new airlines will emerge without a huge debt load. It all depends on whether the fear of contagion from this pandemic stops when it finally ends, or whether there is a lingering aftermath that makes travellers cautious. That will decide if we re-embrace the discomfort that goes with air travel that was decided on seat price and speed of arrival.

The Concorde era  provided travel at faster than the speed of sound, but at premium prices.  The aircraft manufacturers countered that threat with bigger aircraft that provided more seating.  They flew slower, but delivered much lower seat prices and that finally saw Concorde withdraw from the market.

Once again the air industry is at decision point.  All the options available are on the table for discussion and the sharp minds are looking in new directions.  The air services that emerge after this pandemic may be far different from what was on offer before.  Perhaps entertainment as we travel will be the new criteria rather than just being confined to a seat  ?

Sunday 17 May 2020

Casting Doubt On The F-35 !

Along with most of the western world, Australia is committed to buying the F-35 jet fighter aircraft as the mainstay of the Royal Australian Air Force.  We have placed a firm order for seventy-five of them at a cost of seventeen billion dollars.  That is a major expenditure item in our defence budget.

The F-35 will be built by American aviation giant, Lockheed Martin and the plane's components will be sourced from all over the western world.  That is a growing trend in the aircraft industry and each part has both a quality build and a tolerance requirement that is far above the standard required within the car industry.   Over fifty Australian engineering companies are parts suppliers to Lockheed Martin and they account for 2400 jobs in this country.

President Donald Trump has just made a speech that puts that supply chain in jeopardy.   He contends that sharing the parts supply with America's allies is " crazy ".   In the event that we have a problem with a country making parts, we can't make that plane.    The solution he proposes is to bring all the work back onshore and make the aircraft completely in America.

Of course this is an election year in America and Donald Trump will be a contender for another four year stint in the oval office.   A speech that promises to bring well paid jobs home will obviously go down well with his supporters and he was quick to blame his predecessor,  Barak Obama for agreeing to the spreading of the supply chain.

Aircraft parts need incredibly fine tolerances and alloy mixes.  The Australian firms that make supply standard are equipped to compete in the world premium supply markets and that is to our advantage in gaining export business.  A simple nut and bolt that might cost a dollar in a hardware store can be worth a hundred dollars if manufactured to aircraft standards.  It lifts the manufacturing standard in Australia to compete favourably with the best of the rest of the world.

It is also a mistake to think that each component of the F-35 is made by a single manufacturer.  The supply base is evenly spread to allow for supply interruptions caused by world weather events or similar national distortions.   The design of the F-35 contains input from many of the countries that will be buying the aircraft and this has caused the expertise to manufacture parts to be widely spread.

Australian defence experts have dismissed President's speech because of its election content. This is an aircraft tested and proven by a consortium of countries and it will continue to be improved as the base aircraft gets modifications over the years.  In todays world, aircraft go on having improvements added. as they accrue years of front line service.

Saturday 16 May 2020

Sanity Prevails !

Here we are, many weeks into this Coronavirus pandemic and only now have both houses of the New South Wales parliament finally passed a bill to bring relief to essential workers from having to prove that falling victim to the virus was work related.

Prior to this bill, gaining workers compensation relied on nurses, paramedics, doctors, school teachers and other essential workers proving they caught the illness in their workplace and not from the shops or other places in the community.

That was the sort of gobbledegook that was quite capable of delaying the payment of compensation and making life miserable for the front line people who actually tend to victims of the virus and expose themselves to infection by doing so.  It was little short of insanity to expect that people who work in hospitals or otherwise treat the infected in a pandemic should have to prove that this was the cause of their infection to legally claim reimbursement when the required isolation caused absence from their workplace.

This move was warmly welcomed by the NSW Nurses and Midwives Association, saying it was more likely that a nurse infected with COVID-19 would have contracted the virus at work. Nurses, Midwives and other health workers are putting themselves in danger every day.  The shouldn't have to go through a long argument about where they were exposed to this illness if they are required to take sick leave.

We have just had the tragedy of deaths coursing through aged care facilities because this pandemic is unusually fatal to those aged above seventy. An investigation is under way to try and determine how it gained entry and it is quite possible that a worker may have presented for work unaware that they were infected, or with misgivings about how absence would be treated on payday.   That " cause " provision hovering in the compensation fine print was an unreasonable contradiction when a symptom that might - or might not - suggest Coronavirus made an appearance.   The wrong decision would allow the pandemic to race away out of control.

In comparison with some other world countries we have had a lucky escape due to both isolation and  an early implementation of the lockdown.  It might be a very good idea to review the legislation that applies to working conditions across the board to remove any other unreasonable jargon that could  deliver unexpected results.   That old maxim about locking the stable door after the horse has bolted comes to mind  !

Friday 15 May 2020

Illegal Rubbish Dumping !

What is surprising is the number of cars which still have a towing hook because in recent years the number of homes with a trailer has sharply diminished.  Backyards are getting ever smaller and there is nowhere to store a trailer these days. As a result, putting the household junk in the trailer and taking it to the tip has become a thing of the past.

Most councils now allow a couple of free household pickups a year.  Book the event and put the rubbish kerbside the night before is the new way of disposing of what will not fit in the wheelie bins.  Unfortunately, we are creatures of habit and when we see a neighbours rubbish at the kerb we can't resist adding  a bit of our own.  Very quickly a neat pile at the kerb can become a mountain and contain items like refrigerators and washing machines.

This has exacerbated sharply during the Coronavirus lockdown.  In many homes this enforced absence from the workforce has resulted in home renovation plans coming to the fore.  Councils in all parts of Sydney are reporting piles of rubbish at kerbsides which are not booked for removal and it seems that many people think creating a kerbside pile outside someone else's home absolves them of guilt.

Another way of getting rid of unwanted items is to " donate " it to a charity.  During opening hours most charities welcome unwanted items in good condition that can be useful to others, but after dark and over the weekend many people dump completely worthless junk at the charities receiving dock.  In many cases it costs the charity to pay both transport and tip fees to clear this away to the council tip.

Both charities and councils have resorted to security cameras to detect illegal dumpers. Recording the number plate of cars involved will result in the owner getting a call from a council ranger - and a fine.  It is also surprising the amount of identification thrown away in rubbish that is overlooked by the people responsible.  Council rangers are getting very good at sorting rubbish to track it back to its place of origin.

The waste metal industry is very interested in old cars, refrigerators, washing machines and any metal items of substance.  They may even pay you to take them away, or do that job for free if you make suitable arrangements.  They sell unwanted scrap back to the steelworks to be melted down and made into new steel.

Another waste problem concerns asbestos.  It is found in most homes built before the 1980's and is not acceptable at council tips.  Where it is dumped kerbside the fibres can blow in the wind and cause serious health problems.  It needs to be specially packaged and disposed of by contractors licensed to provide that service.

Illegal waste dumping has become a serious problem and councils are launching a crackdown. Putting rubbish kerbside without first booking an arrangement for its removal attracts a heavy fine. Councils will instruct their rangers to prosecute offenders.  Council services are both able and willing to remove unwanted rubbish provided the booking rules are followed.  The problem seems to be that too many people make their own rules and overload the system  !

Thursday 14 May 2020

Its Not Over Yet !

That rumour claiming that the Coronavirus escaped from a Chinese military laboratory in Wuhan is gaining credibility with news that a new strain has emerged in the United States that affects children.  It is being called " Kawasaki disease" and so far more than a hundred children, ranging from teenagers to new-borns have been affected and three have died.

It also helps to explain the measures the Chinese government seems prepared to take to stave off an international enquiry into how COVID-19 originated.  When Australia's prime minister added his voice to that call, China threatened to slap a punative duty on our barley exports and now a similar restriction is looming over beef exports.  It is very clear that China is sensitive to any enquiry that may determine culpability and is prepared to use its economy to shut it down.

There is nothing new in military research into biological weapon  development being carried out as a war weapon.  That reached its height in both Germany and Japan during the second world war and there is evidence that after the war promising scientists were recruited by both the United States and Russia to continue with that venue.  It would be remarkable if China was not carrying our such research as a defence measure.

It now seems likely that this extension to children could be caused by seasonal weather variations.  The medical term that covers it is " paediatric multisystem  inflammatory syndrome " which is triggered by a warmer and wetter winter.   That is exactly the conditions we expect to develop this year in Victoria and Tasmania.

So far this has not been detected in Australia and if it is a seasonal strain our paediatric specialist network will be on high alert to watch for it.  In the northern hemisphere only a small number of children have tested positive to COVID-19 and most have quickly recovered.  What is now happening in the United States is reason for concern.

This frenetic Chinese reaction to an international enquiry is understandable.  Strict Communist ideology has given way to " capitalism with limits " that has resulted in the emergence of a vast Chinese middle class.  It can travel and it can grow rich, but its one party system cracks down hard on any form of dissent.  It is particularly sensitive to blame for the lockdown that interrupted that prosperity turning into unrest with the Communist party.

The venom with which it has attacked Australia over that enquiry issue is illustrative.   We are a middling power posing no military threat to China but it has chosen to play the export card to force our compliance.  Perhaps the Communist government has its ear to the ground and the unity of its population is not as solid as it would have the world believe.

As any psychiatrist would attest, perhaps a sign of a guilty conscience  !


Wednesday 13 May 2020

Keeping the Phones Working !

We have just had one of the worst bushfire summers on record and one of the things that contributed to the anguish was the failure of the telephone system.   Both landline and the mobile network went down at that critical time that people needed to report fires and receive instructions to evacuate.  We are warned that global warming will ensure that future fire seasons extend well outside the normal seasonal parameters.

The Australian Communication and Media Authority review of the impact on communication networks found a total of 888 separate  outage incidents of four hours or more.  Of these New South Wales accounted for the majority with 681 incidents of which most were caused by lack of electric power.  Only one percent can be attributed to direct fire damage.

The government is spending $18 million to strengthen mobile base stations to deal with loss of power in a bushfire because this critical need must continue in future emergencies.   Base stations need backup power if the mains fail and this can take the form of either batteries or generators.  We have the technology to automate the system so that this comes on line automatically the moment the main power fails.

The fact that last bushfire season we had one thousand phone towers knocked out contributed to loss of life and loss of property.  The average length of outage was 3.5 days, but even in normal times there are many areas of the state that exist with no mobile phone coverage, making residents particularly vulnerable in the fire season.

We are on the cusp of 5G and yet parts of the state with significant population numbers exist in what are called " black spots " out of range of phone towers or with unusual features that preclude coverage.  It is time these were eliminated and if necessary satellites may have to be deployed to ensure the entire state is covered.

Last summer's fire season must not be allowed to happen again because of a communications failure.  We had a fleet of fire trucks backed up by aircraft dropping retardant fighting the blaze.  Individual residents were in many cases left to make their own decisions whether to stay or evacuate because the critical information issued by the Rural Fire Services was simply not getting through.

There is every expectation that the main power lines will be a casualty in the fire season.  It is essential that at least the mobile network is backedup with emergency facilities to keep it working when the power goes down.  The technology exists to make that happen.  We can not claim to be a modern nation until that is put in place.

Tuesday 12 May 2020

Tactics in a Trade War !

China is threatening to slap a tariff of near eighty percent on Australian barley and this seems to be a reprisal for the Australian governments push for an investigation into the source of the Coronavirus outbreak that sent the world economy into lockdown.

High quality malting barley is a grain crop concentrated on farms in South Australia and Western Australia and last year the drought affected crop was worth $600 million.  This tariff move comes at a critical time as the grain industry prepared to sow seeds for the coming years harvest.  China is by far the biggest world market for this particular grain crop.

China is alleging that Australian farmers produced barley at a price lower than its " normal " level through 2014, 2015 and 2016, undermining local markets.  It is threatening to impose either a duty of 73.6% or 6.9% as a punative duty.  Australia has ten days to respond.

Australia respects China's right to investigate any anti dumping measures, but it does not accept that there is a prima facie case to answer, let alone a conclusive issue.  If this tariff goes ahead Australia would most likely appeal the move and the case would go to arbitration and drag on for several years.

Clearly, this grain issue is being used as a threat to try and influence Australia to back away from that demand for an enquiry into the source of the Coronavirus pandemic.  It is an election year in the United States and President Trump sees political advantage in pushing blame for the outbreak on China.  US intelligence agencies are pointing to a suspicious phone shutdown at a Chinese environmental laboratory in Wuhan province which suggested an emergency about the time the virus first appeared.  The Chinese response to the outbreak was secretive and slow and the Communist government is desperate to shut down any international investigation into the pandemic's source.

Such is the danger of trading with a super power.  China can make a spurious claim and effect a tariff as a political move without fear of retaliation.  The last thing we want is a trade war because that would be to our disadvantage.  China buys vast quantities of our iron ore, coal and natural gas but it is also sending its young people to Australian universities and Chinese travellers are the backbone of our tourist industry.  The all powerful Chinese government could choke off that flow by making travel to Australia " difficult "  !

In this instance our barley farmers might be wise to consider sowing a different crop.  This disruptive tariff may evaporate if sanity prevails but we are facing a world food shortage and our broad acreage farms are suppliers of what is in short supply.   If a crop change here leaves China short on barley next year that would be an appropriate outcome to that tariff imposition.

Even super powers find that ill considered trade moves bring unintended consequences  !

Monday 11 May 2020

Surviving The Next One !

Now that the Coronavirus numbers are falling lower on a daily basis it is time to take stock and try to determine how this monster caught the world unaware and did as much damage across the globe as a world war.  It shattered the economy of most countries and by sheer good luck an amazing number of people affected by the virus made a full recovery.

Science has been warning us that the biggest threat to humankind  is the emergence of a pandemic with a high mortality rate.  We had an early warning when Ebola broke out in Africa and later both MERS and SARS spread across the world. Now this Coronavirus has increased both the economic destruction and the lives lost beyond those earlier outbreaks combined.

It originated in China, the world's most populous country and it is vitally important that we discover the precise cause.  That is being obscured by political point scoring and it is being suggested it escaped from a weapons research laboratory.  China is sensitive to criticism about how early it sounded the alert and what it did to contain the virus and is unlikely to fully cooperate in a global enquiry to ascertain the precise cause.

We now know that the Ebola threat originated from what are known as " wet markets " where native animals are butchered for human consumption.  Those same wet markets are a fact of life in rural China and some scientific thinking relates to the presence of bats being slaughtered for  human consumption.  It seems fairly clear that all of these threats originated when disease genetics managed to transfer from one animal species to another and the focal point of that transfer was the animal mix at wet markets.

We had a lucky escape.  Ebola is still active but it has been contained in Africa. This Coronavirus was survived by most younger, healthy people and caused death mostly to the elderly.  Unless we track down the precise cause and make changes it is likely we will encounter a pandemic that will take civilization back to the stone age.   The world - as we know it - will cease to exist.

There seems no possibility of stopping those wet markets.  There are parts of the world so poor that the only sustenance comes from what people can grow - or catch.  Meat from any source becomes a vital and welcome part of the daily diet.  Without it, local populations face malnutrition - and death.

It is now essential that we put aside our differences and allow a scientific enquiry to track this Coronavirus back to its source.  It will be the " how " and the " where " knowledge that will allow civilization to put in place the cures and the vaccines that prevent the destruction of the human species.

We live with the certainty that one day we will face a pandemic that is far more deadly than this one which served a warning to the world !

Sunday 10 May 2020

Cracking Down On Strip Searches !

The law in New South Wales is quite clear.  A minor is any person of either gender who has not attained eighteen years of age.  In the event that police have dealings with them, it must be done in circumstances where a parent or guardian is present.  It seems that law has been consistently broken when police have employed strip searches as their means of detecting illegal drugs being carried into music festivals.

The Law Enforcement Conduct Commission is critical of the understanding held by police officers  regarding their search powers.    One officer conceded at a public enquiry that all nineteen strip searches held at one music festival may have been illegal.  Despite this notion that they were acting illegally, the searches were carried by police who had sworn an oath to uphold the law.

Music festivals are on hold during this Coronavirus pandemic, but this situation is unresolved and it is quite clear the police hierarchy is doing nothing to implement a clear set of rules.  The other issue causing distress is lack of privacy during strip searches.  This government oversight body was critical of an sixteen year old girl being ordered to undress in a room with an exterior door that could not be fully closed.

The Commission enquired into five reports of illegal strip searches and delivered a finding that all had been undertaken illegally.  It was noted that none had detected any prohibited drugs.  That raised the question of how subjects to be searched are selected and often that is by interest shown by a police sniffer dog moving through the crowd at ground level.   Drugs simply dropped at the sight of those police dogs could contaminate innocent festivalgoers shoes and attract the dog's attention.

The police do not have to give a reason for a strip search and it is quite possible this power is being used to exact retribution on fans deemed insolent or who offer cheek to the police manning festival entrances. There would be a degree of satisfaction in humiliating such an offender by forcing them to strip naked and adopt positions that allow a search of the private parts of their bodies.  It is quite possible some police derive satisfaction from the distress their powers enable them to inflict.

The fact remains that this lawful commission has found our police have acted illegally and they are not being brought to justice.  It is time the police hierarchy issued clear orders on when searches are permitted, how they are to be carried out and in what circumstances.  Any deviation from those rules and the police concerned would face criminal proceedings in a court of law.  A police officer is subjected to the law in exactly the same measure as the citizens they police.

Strip searches have been a running sore between the police and the public for too long.  Its about time  a clear set of rules injected sanity into the issue.

Saturday 9 May 2020

Identity Theft !

It is obvious that criminal networks that span the world are taking advantage of this Coronavirus emergency to ply their trade. On April 20 the Federal government implemented a measure to allow those suffering financial hardship to access up to twenty thousand dollars of their superannuation over two years.  Very quickly over  half a million applications for early withdrawal were  received and approved by the ATO , averaging at $8000.

Now we learn that financial fraud has stolen about $120,000 from a hundred and fifty superannuation accounts and the robbers are sophisticated offshore criminals who specialise in schemes to trick unsuspecting victims into revealing things like their birth date and tax file number.  With that information, they are well placed to masquerade as the policyholder and pass through the checks put in place by the ATO.

One of the tricks used is a phone call in which the caller represents himself as a legal attorney trying to trace the beneficiary of a deceased estate.  He asks if you are - and gives your full name - that person born on a claimed birth date ?   Of course you respond you are not that person, and often quote your own birth date in passing, and that is a fatal error.

Another favourite of the tricksters is a canvassing phone call promoting a financial service which offers substantial benefits at a very low price. This could be a funeral plan or membership of a health fund offering an attractive  payment plan.  The caller warns that criminal elements may try to steal your benefit  and seeks some sort of personal identification.  To many a tax file number would not be an unusual solution to that problem.

Overseas criminal gangs pay well for this type of information gleaned by local specialists who rob mail boxes at private homes for information.  Banks and government departments used to adorn envelopes with symbols that advertised their nature but that has changed to plain envelopes that give no hint of the likely contents.  The mail system is a rich source of the information that will allow a fraudster to assume the identity of a victim in accruing debt in their name.

It is encouraging that almost a million payments had been successfully completed in these early days of the withdrawal scheme and loss is attributed to only a hundred and fifty instances of fraud. An intense investigation is under way and policyholders are urged to be extremely cautious in guarding the information that may be used in identity theft.

Whether that stolen money will be reimbursed is not yet clear.

Friday 8 May 2020

The Inflation Threat !

A lot of people will be very suspicious about moves to remove the rate cap that has long been imposed on the council rating system.   Council rates are a part of the taxation system and without a curb on the extent of rate rises each year the flood gates would be open for big spending councils to implement grandiose plans that are beyond the ability of average homeowners to finance.

The Australian economy took a big hit when the Coronavirus made a lockdown a necessity.  There was a need to spend a lot of money very quickly to try and preserve some sort of stability and as we emerge from that lockdown we face the grim reality of debt reduction.  Usually that is the scenario when a war ends - and that end is accompanied by a bout of inflation.

Even in normal times the Reserve bank is hoping for inflation to come in at about two percent and there has been worry that we are not experiencing wage growth.  When inflation increases the cost of living it drives upward wage pressures which play havoc with savings and superannuation.  It also creates the illusion that the national debt is not such a frightening figure.

Council rates are taken into account when economists calculate the cost of living and it is these living costs that usually fuel union pressure for wage rises.  We are heading into the financial unknown as this lockdown eases and the wizards who understand finance may be thinking that a little inflation could be a good thing.  It could unlock the demon of wage inflexibility that has been with us for some time.

Councils have developed into the third tier of government and both Federal and state have consistently devolved responsibilities from their own shoulders into council hands - and have not increased funding to finance those new liabilities.  As a consequence, most councils have a massive backlog of deferred work schedules which will never be fitted into the existing financial structure.

We are warned that there is the expectation that some councils will fail and a move to forcibly make them amalgamate to achieve economy of scale was prevented by public opposition.  If that annual rate cap is removed there is a very real danger that rates may spin out of control and lead to repossession.  The council rating system could destroy the concept of families living in a home within their ability to afford.  With that cap removed, the sky is the limit.

Coming out of this virus lockdown will certainly be a new experience that we will have to learn as it evolves.  But taking that cap off council rate rises will not be helpful in keeping inflation under control and it is runaway inflation that could destroy home affordability for the average citizen.

Thursday 7 May 2020

Bad Banks !

That banking Royal Commission disclosed a lot that is wrong with the Australian banking industry.  The good thing about the free enterprise system is that we have the opportunity to make a choice on which bank will handle our money, and usually the decision we make is because of the terms  they offer.

ME Bank is a banking institution that is rather new to the Australian scene.  It is owned by twenty-six union backed super funds and one of the reason many customers made that choice was because it offered draw back facilities on mortgage debt.

It was a comforting thought to many customers that if they repaid their mortgage above the minimum required, in an emergency they would be able to withdraw that overpaid balance to tide them over.  That was supposedly automatically available and did not require the permission of the bank.

When the Coronavirus hit jobs and sent the stock market into a dive ME bank had a policy change that was poorly communicated to customers.  That withdrawal option ceased and many people were suddenly without the ability to redraw to handle mounting personal bills.  It has been suggested that the bank was more concerned with its bottom line than their customers financial health.

The counsellors who oversee the banking industry have been warning that customer loyalty to a bank that has long served their needs is not reciprocal. In most cases, those repaying a home mortgage lodged with the same bank over many years are paying a much higher interest rate that that bank is offering to new customers.

It is a competitive market and banks are eager to attract new custom and to do that they need to be competitive with what rates they offer, but that is not extended to existing customers unless they approach the bank and ask to have their loan reviewed.  It is a sad fact of life that many do not make that effort and go on paying the same mortgage payment automatically, year after year.

Exactly the same disadvantage occurs in the insurance industry.  Inflation is blamed as the premium increases year after year but that premium is negotiable and the insurance industry increases its market share on a case by case individual basis.  New customers seeking quotes from several; insurance companies will experience a variety in the prices offering and haggling before signing up will often result in an even better offer.

The outcome is quite clear.  Loyalty is for losers.   Banks and insurance companies need to be regularly put to the comparison test.  The customer who seeks the best price for their banking and insurance needs is not being disloyal but merely following the first rule of good engineering.

It is always the squeaky wheel that is first to get the oil


Wednesday 6 May 2020

Medical Mixups !

The question of passengers essential medication on long overseas flights has been brought into question by a court action in which a passenger is suing Qantas because a medication mixup resulted in him having a heart attack.

This eighty year old Australian had been living in the United States and boarded a Qantas aircraft to visit his brother in Perth in May, 2018.  He is a type 2 diabetic and uses a wheelchair and arrived at the airport with his insulin in a cooler bag on his lap.

This passenger claims a staff member told him they would take care of his medicine and ensure it went on the plane.  Qantas claims that the passenger left his insulin at Los Angeles airport and it is not their practice to take medication and return it on the plane.

During the sixteen hour flight this passenger became ill.  It is required that he take insulin with his meals and it quickly became evident that his medication had been left behind.   Two hours from Melbourne his blood sugar levels spiked and he had a heart attack.

The cabin crew helped manage his blood sugar levels with appropriate food and drink and ensured paramedics were on standby when the aircraft landed.  They moved him to a seat beside another passenger who is a doctor. This passenger is not satisfied and has commenced court action to recover $200,000 in damages.

Just how that insulin managed to be left behind is unclear.  It is thought that it ended up with the baggage in the plane's hold and was thrown out on arrival because it had travelled unrefrigerated.  Most medication comes with safe handling instructions.

A Qantas spokesman reports that this passenger did not fill out a form to advise that he had a significant medical condition before flying.  That would ensure that the cabin crew were aware of the particular needs that might be required during the flight and would give special attention to having the required medication under their control.  This is particularly important on long haul overseas flights.

Passengers also need to declare the medication with them when they pass through customs.  It is  recommended that they have appropriate renewal scripts which identify prescriptions which may not be common in all world countries.  Care needs to be taken with supplicants which may contain matter not legally allowed in the country of destination.

Perhaps most important of all, medication needs must be made clear when booking the flight.  The airline is then warned that necessary protocols are put in place to ensure that passengers have a pleasant - and safe - journey !


Tuesday 5 May 2020

A Fresh Approach !

Labor's home affairs spokeswoman, Kristina Keneally rocked opposition ranks when she wrote  an opinion piece for the Sun Herald suggesting that Australia needed to have another look at our immigration policy in light of the Coronavirus outbreak.   She suggested that it should be Australians who get the first go at jobs as the recovery strengthens.

This seems to suggest that the immigration intake would be lower under Labor and that provoked sharp differences of policy argument across the party's different political factions.  Some worried that the home affairs spokeswoman was freelancing with policy aimed at more conservative voters.

Kristina Keneally is a refreshing voice which usually brings a questioning approach to traditional Labor dogma.  The economic health of the nation changes from time to time and policy must change with it.  This Coronavirus not only brought change to Australia, it changed the entire world and how we deal with immigration needs to change accordingly.

Opposition leader Anthony Albanese wisely did not respond to a request for comment.  Immigration  was put on hold when the virus was recognised as a pandemic and it has been  a contentious issue in all the years since the end of the second world war.  We are probably the nation which has been most successful in attracting immigrants from the four corners of the world and integrating them into the cohesive structure that is Australia today.

One of the issues causing angst is the temporary visa system.  It is claimed that many employers  use this to avoid hiring local workers and were exploiting people whose visa status and security depended  on their employer.  This often manifests itself in wage theft as the workers are artificially bound to their employer.

Another area that fringes immigration is the issue of work permits to young people taking working holidays in Australia.  Traditionally, they provide the itinerant labour necessary to bring in the harvest, moving from area to area as the work becomes available.  When work permits were frozen during the lockdown the effect was immediate in country areas.  In many areas the crops remained unpicked simply because the labour was not available to undertake the task.

Kristina Keneally has done the nation a service by opening the debate on immigration.  It is too important to be confined within the shackles of politics.  All aspects of opinion need input, even though some may use it as " dog whistling " to mask their true intent.  It is public opinion that usually determines how issues are decided in the political sphere !

Monday 4 May 2020

Installing That App !

The approval rating for that tracking app that seems a likely safeguard to the spread of the Coronavirus has been disappointing.  So far just sixteen percent of the population have taken the trouble to install it on their smartphones.

It delivers the wonders of modern technology as an active health benefit.  The app allows mobile phones to recognise one another anytime the phones of two people are within one point five metres of one another for more than fifteen minutes.  They simply exchange phone numbers, which would allow the health people to contact those who may have become infected once a phone owner comes down with the Coronavirus.

Strangely, a survey of two thousand Australians found 54 percent support for the app with just 37 percent strongly opposed.  Men were more likely to support the app than women, as were those in high income households and those who were married.   There was little difference in levels of support over age groups, states or between city and rural.

The universal reason for opposition seems to be a fear that the app may be compromised to gather data on our daily activities.  Some people are concerned that just just having a mobile phone allows overseas intelligence agencies to listen to our conversations and track our daily movements. That data has great value to the advertising industry in planning the type of advertisements likely to attract our attention and how goods would best be displayed in stores. We are under constant survey through the cctv network operating at street level and throughout shopping centres.

The government claims that it needs forty percent compliance to enable the app to deliver group safety and allow a relaxation of the lockdown.  We have fared better than many other countries and as we resume our former lifestyle it is vitally important that this virus not be allowed to breakout and create infected clusters.  This phone app allows the health people to contact others who accidentally came into contact with a carrier, by sitting near on public transport or waiting in a service queue.

We are assured that this app has no other purpose than to identify others who came within infection range of a carrier.  The information will remain active for twenty-one days and then be automatically deleted.  Whether the takeup reaches forty percent will have a big influence in to what extent the isolation regime will be relaxed.

We seem to be at familiar crossroads.  The majority of people see the benefit of this app but are yet to take the few minutes to actively download it on their phones.  As the daily numbers of those infected continues to fall many think the crisis is over and that is a reason to ignore applying the app.

That is the exact opposite of the truth.  The virus is still active and keeping the country safe depends on quickly identifying those who slip through the net and become infected by coming close to an infected person.   It enables the health people to give warning to stop an infected cluster forming.

Hopefully, this trickle of downloads will continue and that forty percent will be achieved.  It is probably the best public service a citizen can  provide to help Australia end the Coronavirus emergency  !

Sunday 3 May 2020

The Tax Man Cometh !

With the pandemic starting to ease, the New South Wales Treasurer is looking for ways to dig his way out of the financial hole in the state's income.  There are three tax areas in his sights and the one that will have the biggest impact on ordinary citizens is stamp duty.  Treasurer Dominic Perrottet is planning to abolish stamp duty and will probably replace it with a land tax.

Stamp duty is also known as " transfer duty " and it applies to the purchase of homes and the huge escalation in housing prices in recent years has taken it to thousands of dollars a home buyer must pay at that critical time when their finances are most stressed providing a deposit to secure a mortgage.

We are yet to see the details of this proposal but obviously it would be unfair to demand an annual land tax on the family home of those who have paid stamp duty at the time of purchase.  Land tax is likely to be an annual impost similar to the rates imposed by the council.  It is hard to see how it can be imposed equably without becoming a " double taxation " imposition.

The problem is that stamp duty is now the biggest source of state revenue and last year contributed $7.5 billion to the state economy.. Reforming it is a juggling exercise made more complex because stamp duty applies to more than housing.  It also applies when cars are transferred into our name and on many other financial transactions which would not be compensated by applying a land tax.

The next biggest contributor to state income is payroll tax, and that is also labelled as an inequity.  We are facing a growing unemployment problem and yet we are placing a punative tax on the very people who relieve that problem by seeking to employ the unemployed.  Payroll tax is an old war tax that was never rescinded when the war ended.

The third leg of the triage that make up the bulk of state taxes is the levy placed on gambling revenue. The state collects its share from the money that pours through poker machines and also heavily taxes both the TAB and bookmakers.  The closure of clubs and pubs during the virus lockdown would seriously impede gambling revenue and we can expect an austerity mood to prevail during the recovery.

Of necessity the tax regime has to change.  The Treasurer has the job of crafting a tax regime that is judged fair and equitable.  That would be difficult enough starting from scratch, but he has to juggler change to balance the taxes that are in force now and how these will interact with what people will pay into the future.

How that is received will depend on whether the public go looking for the Treasurer armed with pitchforks - and with tar and feathers in mind, or declare him a genius.   That old maxim about the inevitability of " death and taxes "  comes to mind  !


Saturday 2 May 2020

On Shaky Foundations !

The need to construct Metro West to take crowding off the western rail line to Parramatta will involve extensive tunnelling and station excavation between Westmead and the Bays precinct and all that will start in 2022.  When finished, it is expected to take more than 80,000 vehicles off the road by providing a fast rail link and it will employ ten thousand much needed jobs during construction.

The project is causing apprehension among  property owners living in Parramatta, Clyde, Silverwater, Burwood North, Five Dock and The Bays area. who well remember the cracking and subsidence experienced along the route when light rail was reintroduced in inner Sydney.

The state government is seeking approval for the project and the EIS warns there will be cosmetic damage to buildings along the route, which includes cracking of drywall surfaces, cracking of support columns and loosening of joints.  The inevitable question arises of who will pay for that damage and what accountability will apply  ?

These are Sydney's older suburbs and much of the housing here was constructed with materials which are no longer used.  They are perfectly sound if undisturbed, but if damaged repairs are costly and time consuming.  There is usually conflicts between the home owner and the builders as to the extent of the damage caused.

This comes at a time when the government is introducing reforms to the state building code to try an rectify the type of omissions that caused both the Opel and Mascot Towers tragedies and the fitting of flammable external building cladding that was exposed by the London Grenfell Tower fire in 2017.

Amongst the twenty-two changes to the building code will be a $600 million rectification fund for buildings containing that flammable cladding.  The building code changes will apply to new buildings under construction and will do nothing for those already built and occupied and above the route where these rail excavations will occur.

In recent years Sydney has experienced a high rise revolution.  Developers have bought single dwelling lots and combined them to create apartment towers and now owners fear for their stability if work is constructed underground that disturbs their foundations.  Rectification costs can run to a multi milllion price quotation which is above owners ability to pay.

Owners living in apartments along that new train route have reason to be apprehensive.   The damage to Mascot Towers happened years after the building was constructed and occupied and there is conjecture that excavation for another new building alongside may have contributed to the cause.
The fact that the owners who bought into Mascot Towers in good faith are stuck with the rectification bill brings no comfort to those living above that train route.  The changes to the building code will only safeguard what is yet to be built  !




Friday 1 May 2020

Opportunity Beckons !

Petrol is selling for less than a dollar a litre and it may go a lot lower.  This Coronavirus that has taken cars off the road across the world has created an oil glut and the oil world is desperately seeking storage for the product they can no longer sell.   Rusty old oil tankers which have long passed their days at sea are being used as storage depots and the oil companies are rapidly running out of space.

Unfortunately, the blessing of cheaper petrol prices will slow the market share of electric cars and their hybrid cousins.  For once, the oil majors are showing a degree of conformity in cutting back on production, but oil is the lifeblood of their economies and the rich rewards have been used to keep their subjects passive.  Most of the big oil producing countries have restrictive governments that rule with an oppressive use of power. There are no guarantees when the money runs short.

All this comes at a very bad time.  Electric cars are quickly closing the gap on the distance they can cover on battery power compared to the internal combustion engine and recharge time is getting ever shorter.  Once they go to mass production the selling price will drop dramatically and there was every reason to believe that was about to happen.  Cheaper petrol is simply giving the internal combustion engine an extended life span.

This global warming question has become imperative.  We need to burn less fossil fuels - and that means oil and coal.  Wind and solar are fast driving coal fired electricity generation out of business in the developed world and should we change to electric cars our reliance on oil would take a similar hit.  For the first time the opportunity to do something to reduce the mount of carbon dioxide in the atmosphere is within our reach and if this Coronavirus had not blundered onto the scene it would probably have happened.

The conversion of electricity generation from coal fired power stations to renewables depends on government decisions.  The decision on what type of car they drive is entirely up to car owners and the big car companies are watching the public mood before making a decision.  They are not going to convert to mass production of electric cars until they are confident that they have the shape that people will buy and clearly the public mood is towards SUV's.  Unfortunately, " big and roomy family carriers " are better suited to petrol or diesel engines.

The " right car at the right time " can swing market share as Ford established when it introduced its " Mustang " many years ago.  It awaits a brave and resourceful car maker who converts the production line with a smart, family sized electric car at the price that compares with the present crop of petrol vehicles.

The government would be smart if it enhanced that prospect by changing the registration and taxing regime to favour electric vehicles, as is fast becoming necessary if we are to achieve sanity in commuter numbers on the road at peak.  The electric car will not eliminate global warming, but it is the only practical measure that will have a compound effect on the amount of C02 we generate.  It is also the only measure that is within our power to change by consensual public choice.

All other methods involve law changes and draconian penalties that breed public hostility.  The government would be wise to put its shoulder behind the electric car wheel  !