A " Globalized " economy is supposed to deliver cost savings to citizens of the world. The idea is to centralise the production of goods according to the skill required and the cost structure that prevails in the country of manufacture. By that reckoning, a high wage country like Australia would concentrate on high end manufacturing, big on recouping the value added components of automation and skill research. Low wage countries would churn out goods that are labour intensive and require little in the way of development skills to be functional.
Two things came together to upset that balance. The low wage countries added robotic skills to create high quality cars at the lower end of the automobile spectrum. Vehicles from China, South Korea and India have priced traditional car manufacturing countries out of competition, resulting in a two tier system evolving. The big name car companies buy their low end product from one of these three manufacturing sources and rebadge them, while retaining the manufacture of cars in the high end of the price market. The fact that the low end is the volume end means that there are fewer car plants still operating in traditional manufacturing countries - and few jobs offering in the car trade there.
The other influencing factor is the proliferation of competition in low wage countries. Industry regulation is lax and numerous startup companies emerge to try their hand at entering the production market. In many cases, their manufacturing methods are crude and the product they produce may not reach the safety standards required in overseas consumer markets.
A case in point involved a recall notice appearing in today's newspapers. A major grocery chain is appealing for buyers of safety matches sold under their house brand to return the product for a refund. This notice states that when used, the match head may disengage from the matchstick. Obviously, a blazing match head escaping the control of the user would deliver a major safety concern.
Originally, matches would flare when struck against any surface. For safety reasons, the match head was designed to only flare when rubbed against a particular surface which became a part of the product container. It sounds reasonable to assume that a small manufacturer lacking skills started to manufacture matches and made an error in the chemical formula used, resulting in the safety issue that sparked the recall.
It seems that globalization is a mixed blessing. It will certainly result in cheaper consumer goods, but at the cost of jobs in high end countries - and we can expect a proportion of dangerous goods to reach our markets as price becomes the the main criteria in buying decisions.
In many cases the producer of an Australian made product is forced to cease production because what is offering overseas is far below the manufacturing cost in Australia. Unfortunately - as is the case with these matches - what is offered on the supermarket shelves may not attain the safety standards that we take for granted.
Such is the price of globalization !
Tuesday, 6 November 2012
Monday, 5 November 2012
The " Drunk Tank " idea !
One of Barry O'Farrells pre-election pledges was to clean up the streets by creating sobering up facilities in city centres. This is not a new idea because what was called " the drunk tank " was an integral part of policing in many American cities during the last century. Unfortunately, simply resurrecting ideas from the past does not necessarily mean that they are going to work in these very different times.
For a start, the drunks of half a century ago were usually all male. Today - in this more liberated age - the police have to deal with drunken women in almost equal numbers. There is also a very good chance that what appears to be people intoxicated with liquor may hide many who are also suffering the effects of illegal drugs, some of which induce a state of psychosis. Today's drunks of either gender are likely to be more aggressive and prone to violence.
The police are approaching this " drunk tank " idea with caution. It would obviously need gender separation, but the idea of corralling a number of drunken people in a common enclosure fills them with dismay. The side effects of too much alcohol include loss of control of bodily functions and police fear trying to control a situation awash with vomit and infused with a " fight culture ".
It was never the intention to charge those thrown into the drunk tank to sober up. It was simply a form of restraint to prevent drunken people doing harm to themselves or to inflict harm on others. That still seems to be the Premier's intention, but it could also present more new problems than it solves.
We live in an age of litigation. If someone gets seriously beaten up by another resident of a drunk tank that could lead to court action and the police - as custodians - could be held liable. There is also the risk of what can euphemistically be called " mission creep ".
Many a worthy idea ends up being entirely different from it's intended concept. The Taser stun gun seems a perfect example. This was introduced as a life saving alternative to use of a police pistol to resolve any highly dangerous confrontation. It would only be used as an alternative to firing such a weapon.
In short order the police ceased using physical force to overcome resistance and in it's place used their Tasers to exert control. It is now the first option and it's used in circumstances where there would be no suggestion of resorting to use of a police firearm.
There is a danger that a " drunk tank " could morph into a common holding pen to contain people the police wish to question at their leisure. Instead of containing people in the safety of a police cell, the use of what could be termed a " civilian concentration camp " would be an increase in police powers that could easily be abused.
We have a problem with drunks on our streets. It is important that curbing that problem does not create a situation that further erodes the concept of civil liberty !
For a start, the drunks of half a century ago were usually all male. Today - in this more liberated age - the police have to deal with drunken women in almost equal numbers. There is also a very good chance that what appears to be people intoxicated with liquor may hide many who are also suffering the effects of illegal drugs, some of which induce a state of psychosis. Today's drunks of either gender are likely to be more aggressive and prone to violence.
The police are approaching this " drunk tank " idea with caution. It would obviously need gender separation, but the idea of corralling a number of drunken people in a common enclosure fills them with dismay. The side effects of too much alcohol include loss of control of bodily functions and police fear trying to control a situation awash with vomit and infused with a " fight culture ".
It was never the intention to charge those thrown into the drunk tank to sober up. It was simply a form of restraint to prevent drunken people doing harm to themselves or to inflict harm on others. That still seems to be the Premier's intention, but it could also present more new problems than it solves.
We live in an age of litigation. If someone gets seriously beaten up by another resident of a drunk tank that could lead to court action and the police - as custodians - could be held liable. There is also the risk of what can euphemistically be called " mission creep ".
Many a worthy idea ends up being entirely different from it's intended concept. The Taser stun gun seems a perfect example. This was introduced as a life saving alternative to use of a police pistol to resolve any highly dangerous confrontation. It would only be used as an alternative to firing such a weapon.
In short order the police ceased using physical force to overcome resistance and in it's place used their Tasers to exert control. It is now the first option and it's used in circumstances where there would be no suggestion of resorting to use of a police firearm.
There is a danger that a " drunk tank " could morph into a common holding pen to contain people the police wish to question at their leisure. Instead of containing people in the safety of a police cell, the use of what could be termed a " civilian concentration camp " would be an increase in police powers that could easily be abused.
We have a problem with drunks on our streets. It is important that curbing that problem does not create a situation that further erodes the concept of civil liberty !
Sunday, 4 November 2012
Innovative thinking !
The New South Wales government has extended travel discounts to overseas students studying at university or TAFE in the Illawarra, Hunter or Greater Sydney areas. A 35% discount will apply to all forms of public transport. This will be trialled over a twelve month period with the expectation that it will become permanent. It will likely involve a saving of $ 811 a year for the average student.
Education has become one of the industries that attract dollars into the Australian economy. Not all overseas students come from wealthy backgrounds and concessions to make life easier will be welcomed by middle class families struggling to afford an opportunity in life for their children. We already deliver fare relief to Australian children and this new scheme is simply extending a level playing field.
Some student bodies have expressed disappointment that it will not apply to those buying daily tickets. To access the scheme, students will need to buy quarterly or annual tickets. Concern has been expressed that there are gaps in the teaching year, but the scheme's application to quarterly tickets is designed to accommodate that problem - and students who remain in this country during teaching breaks will still have a need to use transport.
Access will require the student to apply for the concession through his or her educational provider. It will only be available to genuine students and this formality will prevent rorting by those who do not qualify. The concession pass will be a valuable document and each student holder will be responsible for maintaining it's integrity.
A lot of things have changed in the past few decades. Globalization has altered the manufacturing spectrum to Australia's disadvantage. We are a high wage country and the western world has seen an exodus of traditional manufacturing jobs to low wage countries. One of the growth areas that has emerged from globalization is the expansion of a middle class in Asia and with it an urge to seek advanced education levels for their sons and daughters.
Our universities and TAFE system meets world standards and Australia has become a magnet for young foreign students because it is seen as a safe country with a welcoming attitude to it's educational institutions.
In particular, the University of Wollongong has excelled in taking up the challenge of providing high class student accommodation in the city centre. This initiative to make public transport more affordable will be another step in selling our university's appeal to an ever widening world.
Education has become one of the industries that attract dollars into the Australian economy. Not all overseas students come from wealthy backgrounds and concessions to make life easier will be welcomed by middle class families struggling to afford an opportunity in life for their children. We already deliver fare relief to Australian children and this new scheme is simply extending a level playing field.
Some student bodies have expressed disappointment that it will not apply to those buying daily tickets. To access the scheme, students will need to buy quarterly or annual tickets. Concern has been expressed that there are gaps in the teaching year, but the scheme's application to quarterly tickets is designed to accommodate that problem - and students who remain in this country during teaching breaks will still have a need to use transport.
Access will require the student to apply for the concession through his or her educational provider. It will only be available to genuine students and this formality will prevent rorting by those who do not qualify. The concession pass will be a valuable document and each student holder will be responsible for maintaining it's integrity.
A lot of things have changed in the past few decades. Globalization has altered the manufacturing spectrum to Australia's disadvantage. We are a high wage country and the western world has seen an exodus of traditional manufacturing jobs to low wage countries. One of the growth areas that has emerged from globalization is the expansion of a middle class in Asia and with it an urge to seek advanced education levels for their sons and daughters.
Our universities and TAFE system meets world standards and Australia has become a magnet for young foreign students because it is seen as a safe country with a welcoming attitude to it's educational institutions.
In particular, the University of Wollongong has excelled in taking up the challenge of providing high class student accommodation in the city centre. This initiative to make public transport more affordable will be another step in selling our university's appeal to an ever widening world.
Saturday, 3 November 2012
Why ?
It is absolutely frustrating when the government announces a smart new health initiative, puts it in place and it works brilliantly - and then for no logical reason decides to pull the plug and withdraw it from vast numbers of people. From this coming January, "Telehealth" will no longer be available to the people of the Illawarra, nor to all those living a similar distance from Sydney.
The aim of Telehealth was to encourage patients to get the expert attention provided by specialists in coordination with their general practitioner. It enabled GP's to setup a conference with a specialist from within their own consulting room, using a video link to deliver sight and sound. The GP would conduct any physical tests required by the specialist and with the coming of NBN's broadband - this seemed to be the way medicine would be delivered in the twenty-first century.
The benefits were obvious. The patient was more relaxed in the familiar surroundings of his GP's rooms. Removing the necessity of many hours travelling to Sydney and return would make more patients likely to agree to see a specialist - and this was touted as one of the main reasons for expanding Telehealth on a national basis.
The linking of patients with specialists by way of their GP's attracted a Medicare payment and it seems that this must be the reason for the cutback. Illawarra patients will be excluded from January, unless they are part of an Aboriginal Medical survey or are residents in aged care facilities.
This will impact on certain members of the public more heavily than others. The old and infirm and those who do not drive will be reluctant to undertake a train journey which will probably include a bus interchange to get to a specialists rooms in Sydney. The whole impact of modern medicine is to get patients checked earlier to prevent rather than merely try and cure diseases. This flies in the face of the advertising that health pays to persuade people to use the health system as a preventive measure.
There is little point in GP's handing out referrals to specialists if they know that their patient will not take the matter further. Telehealth had all the advantages of combining the efforts of patient, GP and specialist to deal with emerging health problems - and in many cases - to prevent them advancing to the stage where expensive hospital care became involved.
This was an initiative that was brilliant - and it was working well. Many will be asking why we are walking away from a progressive idea ?
The aim of Telehealth was to encourage patients to get the expert attention provided by specialists in coordination with their general practitioner. It enabled GP's to setup a conference with a specialist from within their own consulting room, using a video link to deliver sight and sound. The GP would conduct any physical tests required by the specialist and with the coming of NBN's broadband - this seemed to be the way medicine would be delivered in the twenty-first century.
The benefits were obvious. The patient was more relaxed in the familiar surroundings of his GP's rooms. Removing the necessity of many hours travelling to Sydney and return would make more patients likely to agree to see a specialist - and this was touted as one of the main reasons for expanding Telehealth on a national basis.
The linking of patients with specialists by way of their GP's attracted a Medicare payment and it seems that this must be the reason for the cutback. Illawarra patients will be excluded from January, unless they are part of an Aboriginal Medical survey or are residents in aged care facilities.
This will impact on certain members of the public more heavily than others. The old and infirm and those who do not drive will be reluctant to undertake a train journey which will probably include a bus interchange to get to a specialists rooms in Sydney. The whole impact of modern medicine is to get patients checked earlier to prevent rather than merely try and cure diseases. This flies in the face of the advertising that health pays to persuade people to use the health system as a preventive measure.
There is little point in GP's handing out referrals to specialists if they know that their patient will not take the matter further. Telehealth had all the advantages of combining the efforts of patient, GP and specialist to deal with emerging health problems - and in many cases - to prevent them advancing to the stage where expensive hospital care became involved.
This was an initiative that was brilliant - and it was working well. Many will be asking why we are walking away from a progressive idea ?
Friday, 2 November 2012
OOPS !
It must be embarrassing for New South Wales Treasurer Mike Baird to have to admit that someone goofed when they did this state's sums - and a billion dollars suddenly reappeared to take the bottom line from deficit to surplus.
Now comes the use of spin to explain away that little mistake. It seems that we have gone from a deficit of $ 337 million to a surplus of $ 680 million because of a few spreadsheet mistakes, incorrect data entries and faulty reconciliations - and we are assured that despite the impression of a surplus, we are really still in deficit because it is only Federal grants that are propping up the bottom line.
That seems a strange way of thinking. The whole system revolves around a complicated network of monetary exchange. The Feds collect the GST and reimburse the states according to a formula and across the entire spectrum of services there are shared costs. Money changes hands as both the Federal and state systems reimburse one another within a complicated memo of understandings.
The sticking point will be the savage cuts imposed on health and education to relieve that expected state deficit. The Opposition will demand that they be reversed, but both these services have been expanding beyond the state's capacity to pay - and it is time they faced a reality check. Reality decrees that we must work smarter and cut out waste to deliver more efficient health and education services and these budget cuts will ensure that spending is closely examined to give good value.
In recent decades, New South Wales has lagged behind the other eastern states. This has been evident in most aspects of life. Plans for extending the rail system have been announced - and then cancelled. A lot of bad mistakes were made in trying to improve the arterial road system within Sydney. Inertia ruled when changes became necessary to bring trading conditions for industry into line with overseas expectations. We simply failed to perform to an expected standard.
A new government in it's first term has the opportunity to reverse that inertia. It may not be popular to trim back some services, but money needs to be spent where it will do the most good and that means putting every avenue of expense under the microscope. Not only do we need to reduce slothful spending, we also need to start grading the state's needs in order of priority - and stop avoiding decision making to get them under way.
So far, some of the signs are good. Work has started on a long promised railway extension. Darling Harbour is about to close for a rejuvenation that will include much needed convention facilities, The Sydney ferry fleet is in private hands and expansion plans are well advanced. A major project is starting to create a new business centre in the inner city, utilising the old gas works site at Barangaroo.
We urgently need to settle the long delayed question of Sydney;s second airport, but most of all the entire regimen of business administration needs a shake-up. There are too any outdated laws and red tape stopping the creation of new business or the expansion of existing companies. A breath of fresh air through the labyrinth of regulations that impede all forms of progress is long overdue.
This is the twenty-first century. Sticking to the old ways of doing things is no longer tenable !
Now comes the use of spin to explain away that little mistake. It seems that we have gone from a deficit of $ 337 million to a surplus of $ 680 million because of a few spreadsheet mistakes, incorrect data entries and faulty reconciliations - and we are assured that despite the impression of a surplus, we are really still in deficit because it is only Federal grants that are propping up the bottom line.
That seems a strange way of thinking. The whole system revolves around a complicated network of monetary exchange. The Feds collect the GST and reimburse the states according to a formula and across the entire spectrum of services there are shared costs. Money changes hands as both the Federal and state systems reimburse one another within a complicated memo of understandings.
The sticking point will be the savage cuts imposed on health and education to relieve that expected state deficit. The Opposition will demand that they be reversed, but both these services have been expanding beyond the state's capacity to pay - and it is time they faced a reality check. Reality decrees that we must work smarter and cut out waste to deliver more efficient health and education services and these budget cuts will ensure that spending is closely examined to give good value.
In recent decades, New South Wales has lagged behind the other eastern states. This has been evident in most aspects of life. Plans for extending the rail system have been announced - and then cancelled. A lot of bad mistakes were made in trying to improve the arterial road system within Sydney. Inertia ruled when changes became necessary to bring trading conditions for industry into line with overseas expectations. We simply failed to perform to an expected standard.
A new government in it's first term has the opportunity to reverse that inertia. It may not be popular to trim back some services, but money needs to be spent where it will do the most good and that means putting every avenue of expense under the microscope. Not only do we need to reduce slothful spending, we also need to start grading the state's needs in order of priority - and stop avoiding decision making to get them under way.
So far, some of the signs are good. Work has started on a long promised railway extension. Darling Harbour is about to close for a rejuvenation that will include much needed convention facilities, The Sydney ferry fleet is in private hands and expansion plans are well advanced. A major project is starting to create a new business centre in the inner city, utilising the old gas works site at Barangaroo.
We urgently need to settle the long delayed question of Sydney;s second airport, but most of all the entire regimen of business administration needs a shake-up. There are too any outdated laws and red tape stopping the creation of new business or the expansion of existing companies. A breath of fresh air through the labyrinth of regulations that impede all forms of progress is long overdue.
This is the twenty-first century. Sticking to the old ways of doing things is no longer tenable !
Thursday, 1 November 2012
Price war in Australian skies !
It looks like the " bums on seats " war to attract airline passengers is hotting up. Virgin has bought a sixty percent share in discounter " Tiger " and is building a liaison with Singapore Airlines to make the right connection to the rest of the world. This will face off against Qantas and it's tourist subsidiary - Jetstar, which are in the process of forming a working liaison with the growing airline giant -Emirates.
Maintaining a healthy bottom line has seen the demise of many big name international airlines. Equipping an air fleet with the right mix of planes is an expensive business and the cost of jet fuel can surge unexpectedly. As things stand, Qantas has a firm grip on air travel within Australia and operates that at a profit, but it's overseas service runs in the red. Jetstar is now competing with Qantas economy seats in taking tourists to overseas destinations and some people think a clear division between " discount " and " business/luxury " services is under way.
Airline passengers are finding it rewarding to " shop around " when booking a flight. There are so many " deals " on offer, usually accessed on the Internet that a lot of money can be saved by researching the best prices in comparison to just booking a seat on a scheduled service.
We have come a long way from the days of the old " two airline " policy. That was a time when airline seats seemed to be under some sort of price control - and there was no difference in price whether you booked with Ansett or TAA. Both were expensive, given that Australia is a big country with it's population centres separated by long distances, and not served by fast trains or any other type of fast transport system.
It seems likely that this coming ticket price war will be healthy for passengers wallets, but it will deliver a question mark to those who live in country Australia. The big, high volume traffic routes are between the three major cities on the east coast. Getting to those hubs from regional cities and towns is so far unresolved, and this raises questions about the future of services to Sydney's Mascot airport - which combines overseas and domestic travel with feeder services from the regional centres.
The question is - can Mascot accommodate this volume of traffic ? Melbourne had a similar problem and solved it by upgrading Avalon as it's second domestic airport. So far, no decision has been reached on the site of a second Sydney airport and when that is attained, it will probably be well over a decade of planning and construction before the first aircraft touches down on that new runway.
It must be a nightmare for the airline industry in trying to put together a master plan to integrate local and overseas travel, knowing that Australia's biggest city and the lynch pin in the east coast hub has a bottle neck that shows no sign of being resolved.
It seems to be a case of politics taking precedence over the needs of the Australian transport industry !
Maintaining a healthy bottom line has seen the demise of many big name international airlines. Equipping an air fleet with the right mix of planes is an expensive business and the cost of jet fuel can surge unexpectedly. As things stand, Qantas has a firm grip on air travel within Australia and operates that at a profit, but it's overseas service runs in the red. Jetstar is now competing with Qantas economy seats in taking tourists to overseas destinations and some people think a clear division between " discount " and " business/luxury " services is under way.
Airline passengers are finding it rewarding to " shop around " when booking a flight. There are so many " deals " on offer, usually accessed on the Internet that a lot of money can be saved by researching the best prices in comparison to just booking a seat on a scheduled service.
We have come a long way from the days of the old " two airline " policy. That was a time when airline seats seemed to be under some sort of price control - and there was no difference in price whether you booked with Ansett or TAA. Both were expensive, given that Australia is a big country with it's population centres separated by long distances, and not served by fast trains or any other type of fast transport system.
It seems likely that this coming ticket price war will be healthy for passengers wallets, but it will deliver a question mark to those who live in country Australia. The big, high volume traffic routes are between the three major cities on the east coast. Getting to those hubs from regional cities and towns is so far unresolved, and this raises questions about the future of services to Sydney's Mascot airport - which combines overseas and domestic travel with feeder services from the regional centres.
The question is - can Mascot accommodate this volume of traffic ? Melbourne had a similar problem and solved it by upgrading Avalon as it's second domestic airport. So far, no decision has been reached on the site of a second Sydney airport and when that is attained, it will probably be well over a decade of planning and construction before the first aircraft touches down on that new runway.
It must be a nightmare for the airline industry in trying to put together a master plan to integrate local and overseas travel, knowing that Australia's biggest city and the lynch pin in the east coast hub has a bottle neck that shows no sign of being resolved.
It seems to be a case of politics taking precedence over the needs of the Australian transport industry !
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