" Blackouts " Coming !

Here we are in the first week of Spring and with the prospect of a long, hot summer awaiting us.  The only fly in the ointment seems to be a doubt that we will have enough electric power to avoid blackouts on the hottest days.

This quagmire is the result of an emotional panic in public minds that we need to save the planet by stopping the use of coal for power generation and the usual political opportunism to block any measures that would bring practical relief.  The public mind is set on replacing coal with wind and solar, despite its inability to deliver a reliable base load supply.

This has been exacerbated by the close down of several old coal fired power generators with others slated for removal from the grid in the years ahead.  The spotlight is shining on the  forty-six year old Liddell plant in the New  South Wales Hunter region.   This is scheduled to stop operation in 2022.

This plant is owned by AGL, one of the biggest power suppliers in Australia and the government is insisting that closure be delayed and the plant remain operational for another five years.  That is meeting resistance from AGL and one of the reasons is the company promise that it is " getting out of coal " which is cementing its image in public minds as a " progressive " company.

We seem to be caught in a " betwixt and between " situation.   Old plant closures that have already taken place leave us perilously short on the hottest days to come and at the same time the fuel favoured to replace coal - gas -  is going to export, leaving insufficient to bridge the gap if we build new generators in time.

The government is negotiating with AGL and no doubt the problem may be resolved, but if not it may become necessary to either buy or nationalize Liddell to keep it running and ease the crisis.  Unfortunately power generation is a state issue and this further complicates getting a common approach in place to what will quickly become an Australian financial problem.  Our electricity charges are now the highest in the world and supply interruptions would quickly cause what is left of Australian manufacturing industry to become uncompetitive.  In particular, we would lose our aluminium production sector.

What is urgently needed is to bring the entire Australian power grid under the control of a single authority and give that the ability to decide how we are to generate the electricity this country needs. All options - on the table.  We have a big share of the worlds Uranium - and nuclear needs to be evaluated in a clear and professional manner.   We may need to still use coal in the short term but the power Australia needs will certainly be a hybrid mix of solar and wind, hydro electric generation - and base load by burning some type of fuel.   There are obvious advantages of integrating the eastern states in a common distribution grid.

Now all we require is political sanity to make that happen !

The " Blood " of Life !

Many emergency operations would not be possible without the ability of the doctors to replace blood lost with a blood transfusion to keep the patient alive.  That is something that we take for granted, but every now and then the blood bank warns that supplies are running low and urgently appeals for donors to give blood.

The Australian Blood Bank is an entirely volunteer operation.  In many countries, blood donations from the public are a source of income for donors and this brings with it the risk of people with medical reasons that make them unacceptable disguising that danger simply because they need the money.  The Australian blood supply is stringently tested before it passes into hospital use.

We are facing one of those periods of low blood supply because this years flu season has been massive.  About three thousand donors who are usually scheduled to give a donation have had to cancel because they are sick with the flu.   The Health department estimates that this years flu season claimed about sixty thousand victims, compared with 35,538 last year.   The service advises donors that they can give blood at least seven days after the last flu symptoms disappear.

It seems that human blood is strange stuff.   It comes in quite a  few different varieties and it is critically important that the patient in need gets the right grade. O-negative is the universal type that can be given to all patients with maximum safety, and hence the Blood Bank is urgently needing donors with O-negative blood in their veins.

Between eight and nine percent of the public are O-negative, but this blood type accounts for about fifteen percent of all hospital demand.  Strangely, few people seem to know their blood type but all blood is type tested in every aspect of is journey from donor to patient.

The Blood Bank is urging those who have recovered from the flu to give urgent thought to a blood donation.  It is a matter of grave concern when stocks are running low because it disrupts surgery schedules when postponement is necessary if blood supplies can not be guaranteed to supply the estimated need.

New donors would be very welcome.  Many members of the public have established a commendable record of making regular donations over a long period of years and trips to the Blood Bank become something of a rite of passage.    It is not an unpleasant procedure and it is usually rewarded with a cup of tea or coffee - and biscuits.

The fact that the Australian Blood Bank is entirely reliant on the good grace of the Australian public is a matter of national pride.  Whenever a hospital patient needs blood, it is immediately available in this country without charge.

Armageddon !

A lot of senior citizens remember the newspaper headlines on August 12, 1953.   That was when the world learned that the Soviet Union has first test fired a Hydrogen bomb !   It was a cause for dismay.  We had hoped that the Hydrogen bomb secret would remain in western hands for many decades.

Sixty-four years later and we are all still alive and we have avoided the dreaded start of World War Three.  The Soviet Union has imploded and the threat of Communism being forced on an unwilling world by military means has been lifted.  We no longer liver in fear of Russia or China suddenly launching a nuclear attack without warning.

Up until now we have lived with the Hydrogen weapon being in the hands of half a dozen nations headed by sane people.  This ultimate weapon stands ready in a reserve status.  Should anyone be so stupid as to launch one in attack they would be similarly destroyed by the response.

All that changed in the twinkling of an eye when North Korea exploded its first Hydrogen bomb in the last few days.   The aims and ambitions of its leader, Kim Jong-Un are enigmatic. He is a dictator heading an impoverished hermit kingdom with one of the worlds biggest conventional armies.  He openly expresses hatred of both the United States and Japan and it is now clear that he is fast reaching the operational stage of an ability to reach the rest of the world with nuclear tipped ICBM's.   He now has the ultimate weapon - the Hydrogen bomb - in his keeping.

It must be very tempting for Donald Trump, the American president to use the opportunity offering to eliminate this threat and restore the world to its previous nuclear balance.  Technically, the United States and North Korea are still at war. The 1950/53 Korean war ended in a temporary armistice and has never proceeded to a peace treaty.  North Korea is openly threatening America there is no doubt that the United States has the military power to win such a war.  The only unknown factor is what degree of damage North Korea might manage to cause in such a confrontation.

It could destroy Seoul, the South Korean capital and it might launch an ICBM that hits an American city, but the response would be less than the destruction the United States would rain down on that little country.  Overlapping hydrogen bomb explosions would reduce the country to charcoal and eliminate its people.

That may well be an option Donald Trump is seriously considering.  Should the US hold its hand and do nothing the future is ever more frightening.  It seems inevitable that North Korea will continue to develop even better ICBM capabilities and that its warheads will improve to multiple re-entry diverse target models.  It is already testing missile launch from submarines, hence it may soon be able to threaten from a fleet hidden in the worlds oceans.

The unknown factor is just what sort of person is Kim Jong-Un ?   Is his demonic façade the product of an unhinged mind, or can he be expected to achieve moderation once he believes that his military make his country safe from attack.  Is his dictatorship safe from the aspirations of the generals that surround him - or is it inevitable that this unstable regime will try to blackmail the world into giving it a living ?

For many years the world lived on the edge of Armageddon. Looks like we are back to the status quo !

Power Rationing !

An insidious idea has been suggested to avoid the need to implement an upgrade of the Snowy River hydro scheme that has a price tag running into billions of dollars.   The power companies want consumers to give their permission for their power utility to take control of their air conditioner and swimming pool pump at times of high demand.

This spiel is unconvincing.  It is suggested that if power to these services is turned down just a little bit that would reduce the load across the network or in a particular part of the network.   It seems to suggest that air conditioners and pool pumps will continue to give service, but just a little more slowly when the voltage they receive drops below the normal level.

It will be interesting to hear what the makers of these electrical items have to say on the matter.  The modern electric motor that powers these services is constructed to specific tolerances and the design is suited to the specification of power levels delivered by the Australian electrical system.  Once someone starts monkeying with the voltage suppled all sorts of unexpected consequences are likely to appear - and then there is the implication for warranties.

This suggestion sounds like the thin edge of a very unpleasant wedge.  Power demand in Australia is constantly rising as new innovations are bought by the public and the power companies claim they need to renew poles and wires to deliver this added voltage to consumers.  At the same time, the generators of that power are slipping below demand because we are retiring old coal fired power stations and facing political gridlock in approving their replacement.

The power level in Australia was set at 240 volts a very long time ago and that is the standard to which electrical appliances are constructed.   If we start delivering less than 240 volts to selected items such as air conditioners and pool pumps, how long before the general supply falls below that level as a means of evening out demand at high peak ?

We have spent billions installing the NBN to give a first world service in the computer age.  That will not be helped if at the same time we are reverting to a third world electrical supply.  To add insult to injury, it is being suggested that consumers be rewarded for accepting sub standard voltage by a lowering of the bills they will have to pay.

To many minds, this sounds like ever slipping standards.  It all started when the state governments passed the electricity supply into commercial hands in exchange for the money they needed to fix the roads and transport systems, and this coincided with global warming throwing the onus on reduction in coal use to save the planet.  From there it all went downhill.

The cost of electricity to consumers has more than doubled and now it seems we are not generating enough of the stuff to meet demand.  The creation of new generators is bogged down in a political fight between the solar and wind lobby and those advocating the judicious use of coal and natural gas to supply demand peaks.   As a result, no new generators are under construction and we are heading into a power crisis.

Time the people of this state demanded this situation be sorted - and that the 240 volt standard be maintained.  Lowering the voltage is not the answer !

Consumer Protection Downgraded !

We look to the law for protection but the law is never a certainty.   It all depends on the interpretation placed on the wording of that law by the individual judge hearing the case.  Such a decision handed down in the Federal Court seems to diminish the protection of consumer rights under Consumer Law.

Consumer law in Australia is quite unequivocal on the procedure when somebody buys an item that fails to perform correctly within the warranty period.   They are entitled to select from their choice of what are often referred to as the " three R's  " -  Refund - Replacement or Repair.

Where that takes place is also abundantly clear.  The faulty goods need to be returned to where the original sale took place.  Some merchants try to fob off customers by claiming that they need to return the faulty item to the manufacturer and often literature packed with the item also makes this claim, but that only applies when the sale is in a state or country which lacks any form of consumer law.   In New South Wales, if the goods were sold in this state, the return is to the place of purchase.

A ruling handed down in the Federal court will surprise many people.  The Australian Competition and Consumer Commission ( ACCC ) took the Korean LG behemoth to task because it was claimed that LG charged customers for parts and labour when they returned faulty television sets that were covered under warranty.

The ACCC also  argued that information on LG's website about manufacturers warranties was misleading.  Information about Australian Consumer Rights  at the bottom of the site was in " small and closely spaced text ".

This ACCC case was dismissed by Justice John Middleton on the grounds that LG received a request for repair, made an offer and that offer was accepted by the customer.  The finding was that " LG was entitled to so conduct itself ".   Justice Middleton then went on to say that there is no allegation that LG acted in bad faith, deliberate falsehood going to ultimate liability or other unconscionable conduct.   The issue of Australian Consumer rights being in small and closely spaced text was also rejected on the grounds that LG had no obligation to tell consumers their rights under Australian consumer law.

These findings certainly open an interesting can of worms.  It seems that if a customer returns faulty goods there is no expectation that the warranty will  automatically come into play.  The customer must specifically demand access to one of those " Three R's " or the merchant may legally make an offer for a lesser course of action to settle the matter - and if that is accepted - no law has been breached.

The ACCC has the right to appeal those decisions and that is now under consideration. The whole purpose of consumer law is to protect vulnerable people from suffering loss where goods do not meet the standards expected of a new item.   What is being brought into question is the right of merchants to offer less than what is mandated by law and having such arrangements accepted by those who lack knowledge of their rights or who are intimidated by any form of authority.   It legitimises a lesser settling of the entitlement of the buyer by imposition of charges that they are not liable to pay.

Consumer rights groups will certainly urge the ACCC to expedite that appeal.

Ending the " Surcharge " Ripoff !

From yesterday it became illegal for a merchants accepting EFTPOS payments by way of a Debit card, or Visa, MasterCard or American Express credit card to charge any more than the cost the banks impose for that transaction.  That differs between individual banks, but the charges fall into the category of .05% for debit cards, 1 to 1.5% for Visa and MasterCard payments and between  2 and 3% for American Express.

The Australian  Competition and Consumer Commission has warned that breaches of the law will result in substantial first offence fines and the law will be diligently policed.   These surcharges have been the subject of constant complaints from card users with some merchants imposing a cost running into dollars for a service fee that cost them mere pennies.  It had become a hidden way of artificially adding a loading to the face value of the bill.

This legislation is long overdue. The " tap and pay " method applied to using mobile phones is fast decreasing the settling of small amounts with cash and there is the expectation that this will sharply increase in the future.   Cash is becoming a cost imposition on traders.  The reduction in bank branches has made banks reluctant to accept major cash deposits over the counter and many merchants are forced to have special service companies collect, count and deposit it - and that comes at a cost.

In particular, the increased use of debit cards has overwhelming advantage..  The money is instantaneously transferred from the bank account of the customer into the bank account of the merchants.  The trader is relieved of the danger of having tempting cash in the cash register to  attract bandits.  That is an advantage most thinking merchants would find attractive.

Paying taxi charges with a card and the use of cards in restaurants are notorious for card fee ripoffs.  The public should lodge a complaint if they find they have been charged an excessive fee for card use and there is the expectation that the offending merchants will be quickly brought to book.   There is also the expectation that this overcharge will be refunded.

There is another ripoff area that should be brought to the attention of the ACCC and that is the conditions imposed on gift certificates.  A gift certificate is simply a substitute for cash and its face value will be instantly refunded in cash when it is presented to the issuing company.  It was always open ended, but in recent years many issuing companies have imposed a time limit - usually twelve months validity.

Many gift certificates are never presented to a merchant and their value is not redeemed.  They are tucked away in a wallet and forgotten, or sometimes used to make a purchase which leaves an unspent balance.  This is a cash bonanza for the issuing company because they have received full payment in exchange for what had become a worthless piece of paper.

There are often limitations on the use of gift certificates.   Some merchants insist they can not be used for the purchase of items marked down at a sale price and must be used on full price items.  This is an artificial imposition that can be challenged at law, and it should be enforced by the ACCC.   In all respects, such gift certificates should have the same bearing as the presentations of banknotes.

The law change on card use surcharges is welcome.  Hopefully, similar legislation to cleanup the gift card disadvantages will quickly follow.

The " Education " Jungle !

It has been made abundantly clear to most thinking people that the future for those who leave school with just a Higher School certificate will be economically hazardous.  This is fast becoming the age where qualifications will be critical to obtaining the type of employment that delivers a twenty-first century pay check.  The range of industries that require university level entry are expanding rapidly.

That " Education " market really is a jungle and it contains some voracious beasts of prey.  One has recently been unmasked and hit with an $8 million penalty, but a lot of people have had their hopes of a better life dashed and find themselves seriously out of pocket because of its predations.

Get Qualified Australia was a company offering skills certification by way of obtaining recognition of prior learning in industries such as beauty,construction and business.  The Federal court found it guilty of " Parasitic practices " and the now defunct  body was hit with a massive fine.  It had five thousand enrolled students and most of them can wave goodbye to thousands of dollars in fees.

The sole proprietor was found guilty of knowingly being concerned with the conduct of the company and hit with a personal penalty of  $ 500,000 and disqualified from managing a corporation for a period of seven years.   The company preyed on vulnerable people desperate to improve their employment chances and the illegal conduct included rolling people into courses with misleading marketing and not providing the services the customers paid for.  Refunds were refused, despite the company advertising a hundred percent money-back guarantee.

It is obvious that the sales strategy sought to sign up everyone offering without regard to whether they had any documentation likely to prove merit and to do so by way of grossly unfair contracts. The sales force were without an education background and were selected merely of a proven sales record in other industrial areas.  The entire operation reeked of deception.

Sadly, the governing body to education only managed to close down this shonky operation after the damage had been done and a vast number of people had lost money.  The Australian Competition and Consumer Commission is tasked with overseeing that corporations are trading legitimately, but this comes into play after the entity becomes active in the market.   It is unclear precisely what checks and balances - and who has the task of ensuring probity - take place when a new marketing company sets up in business !

Australia is a major player in the education industry. Our universities are very attractive to students from India, China and many other overseas countries and adverse publicity about education scams can damage that spotless reputation.   It is essential that we have a close oversight of all education aspects and that even the initial marketing gets close scrutiny.  It would be obvious to the trained eye if those being signed up have the aptitude for the proposed education to be delivered.

Australia's reputation in education is a highly valued commodity.   We need to close down these  scams before they do any damage.  Obviously, whatever we have in place to do that is falling short of its objective !