In Australia the name " Westfield " probably illustrates the opportunities that await those who migrate to this country and apply initiative and hard work to create an empire. Almost fifty-seven years ago Frank Lowy and business partner John Saunders built the Westfield Shopping centre complex from scratch. With shrewd foresight it expanded to the US, New Zealand and Britain.
This week, now Sir Frank Lowy is urging his shareholders to accept an offer from one of the worlds biggest property companies to purchase Westfield for $ 32.8 billion dollars. We are on the cusp of a great change in our shopping habits and Lowy accepts the need to pass the baton to the European firm of Uniball-Rodamco who will have the task of making Westfield adapt to how shopping will evolve in the future.
The bricks and mortar shopping world is under threat from Internet shopping and this has cut a swathe through many smaller strip malls and older main street shopping centres. The Westfield portfolio have held up well but it is evident that change is about to occur and the future will see these centres evolve with a wider range of activities The impetus will concentrate on entertainment and cater for theatres and restaurants, sports - and to a lesser degree - shopping.
This is an exciting - and dangerous - time for the people owning the world shopping centres. Big players are moving into the supply field and public tastes are changing. The winners will be those who accurately predict what will emerge and configure what they are offering to meet that need.
A big part of the present shopping centre scene involves " franchise " operations where independent owners offer merchandise under the brand name of a famous entity. It is fast becoming apparent that many of these are not viable and some are being forced to close their doors at great financial loss. It is claimed that these franchise conditions are often onerous and force the payment of sub standard wages to even reach a break even stage of operation. In many cases, such franchises have been the only chance for independent operators to establish their own business.
It seems quite possible that the future may not favour clusters of smaller shops surrounding an anchor tenant and franchise operations may sharply decrease. This change of Westfield ownership comes with a warning that major change is about to happen. Small business owners will await that outcome with trepidation !
Frank Lowy had the insight to correctly gauge the right time to create his shopping empire. He is one of the few with the good business sense to know when it is the right time to walk away !
Thursday, 14 December 2017
Wednesday, 13 December 2017
The " Christmas " Scam !
This is the time of the year when we are all vulnerable to a new kind of fraud perpetrated by the Internet scammers. Christmas gift giving means that there are a lot of parcels moving about in the various delivery services and many did their Christmas shopping on the Internet. We would not be surprised to get an email message that seems to originate from Australia Post or DHL apologising for a " missed delivery " and purporting to put things right.
The first danger springs into action if our curiosity causes us to open that email to see what it is all about. Once you click on that email you have opened the door to a flood of ransomware that can infect your computer and allow the scammers to shut it down and lock you out of your own information. That ransomware simply changes all the passwords and the scammers demand that you pay whatever they ask to have your computer returned to your control.
Sometimes the scammers actually honour their end of the arrangement when the ransom is paid, but often they are never heard from again once the money changes hands - and the computer remains locked. There is also the risk that the ransomware will leave a trace carefully concealed so that the scammers can have a second bite at the cherry at a later date. That may enable them to read your message traffic with the aim of stealing bank passwords and other sensitive information.
The more common scam is to seek personal information in the guise that they need to determine if you are the correct recipient of this " missed delivery ". They may ask you to name your street number and the nearest cross street, ask for the names of any other family members - and require your date of birth. All that information could enable them to achieve identity theft.
Assuming another persons identity is fraught with danger. A clever scammer can rack up a mountain of debt and do irreparable damage to your credit reputation. The commercial world is hitting back and the most common defence is to send their customer a message on their mobile phone asking them to authenticate an unusually large purchase or an item that seems out of character. This also automatically applies if the bank receives a money transfer to a site with no previous history. This filter is becoming very effective in stopping fraud at the point of sale.
The age of the computer continues to advance and few can now resist the relentless use of the computer billing cycle. The old method of mailing out a paper bill each month now comes with a hefty surcharge or is no longer available and elderly people find their bills arrive by computer or mobile phone. Unfortunately, many are vulnerable to the slick presentation that the scam industry now uses to appear genuine.
The elderly would be well advised to seek the guidance of a younger family member to monitor their computer traffic. The younger generation can usually spot suspicious gambits that are not part of usual practice - but the scammers also develop new techniques with great ingenuity. This is a battle that is fought with electronic weapons.
The first danger springs into action if our curiosity causes us to open that email to see what it is all about. Once you click on that email you have opened the door to a flood of ransomware that can infect your computer and allow the scammers to shut it down and lock you out of your own information. That ransomware simply changes all the passwords and the scammers demand that you pay whatever they ask to have your computer returned to your control.
Sometimes the scammers actually honour their end of the arrangement when the ransom is paid, but often they are never heard from again once the money changes hands - and the computer remains locked. There is also the risk that the ransomware will leave a trace carefully concealed so that the scammers can have a second bite at the cherry at a later date. That may enable them to read your message traffic with the aim of stealing bank passwords and other sensitive information.
The more common scam is to seek personal information in the guise that they need to determine if you are the correct recipient of this " missed delivery ". They may ask you to name your street number and the nearest cross street, ask for the names of any other family members - and require your date of birth. All that information could enable them to achieve identity theft.
Assuming another persons identity is fraught with danger. A clever scammer can rack up a mountain of debt and do irreparable damage to your credit reputation. The commercial world is hitting back and the most common defence is to send their customer a message on their mobile phone asking them to authenticate an unusually large purchase or an item that seems out of character. This also automatically applies if the bank receives a money transfer to a site with no previous history. This filter is becoming very effective in stopping fraud at the point of sale.
The age of the computer continues to advance and few can now resist the relentless use of the computer billing cycle. The old method of mailing out a paper bill each month now comes with a hefty surcharge or is no longer available and elderly people find their bills arrive by computer or mobile phone. Unfortunately, many are vulnerable to the slick presentation that the scam industry now uses to appear genuine.
The elderly would be well advised to seek the guidance of a younger family member to monitor their computer traffic. The younger generation can usually spot suspicious gambits that are not part of usual practice - but the scammers also develop new techniques with great ingenuity. This is a battle that is fought with electronic weapons.
Tuesday, 12 December 2017
The " Humanitarian " News Cycle !
" Once upon a time " was the traditional first line of most fairy tales and the story line usually served to either warn little kids of dangers to be avoided or had a humanitarian twist to deliver a sound nights sleep. Today we live in a more questioning age and it seems that the cynics are quick to question the motives of altruistic events.
Just such a story emerged from the fire devastation that has been destroying so many homes in the suburbs of Los Angeles. The news cycle is enlivened by the contributions from ordinary citizens who use the camera in their Smartphones to grab their five minutes of fame.
It seems that Oscar Gonzales was driving home along a highway flanked by flames when he spotted a rabbit desperately trying to outpace the fire. He got out of his car and with a massive wall of flames as the backdrop, raced onto the roadside and scooped up the rabbit. Another citizen recorded this event on his or her phone, and the clip was offered to a Los Angeles television network.
The clever news editors thought that this was just the right clip to lighten the panorama of burning homes that the traditional Santa Anna wind was once again inflicting on California. Oscar became an instant hero and most people applauded his brave action to save endangered wildlife.
This " Rabbit Rescue " quickly went coast to coast in the television news cycle and from there got an instant airing on social media. That picture of Oscar backlit by flames and with the rabbit in his hands went viral and was probably viewed by a billion people.
Not all approved of his action. The story has sparked a lively debate about whether his actions were helpful - or whether he triggered a disaster. It has been suggested that perhaps that rabbit was not running from the fire, but trying to reach a litter of babies. That sparked a story in some sections of the media that suggested that " the wildlife rescuer may have doomed a litter of baby rabbits ".
Unfortunately, this is a story that has no happy ending. Oscar thought of taking that rabbit to a rescue centre but they were all closed. It is assumed that he released it when he reached an area safe from fire and it is now establishing a new home in an unfamiliar bush setting. We will never know. The news cycle has moved to other events - and that rabbit was yesterdays story !
It would be interesting to know how this changed the life of the man who saved the rabbit. His family, friends and the people associated with his work will all have an opinion and most will be favourable, but it seems inevitable that he will face criticism from some. Such is the price of instant fame.
Many here in Australia may remember a film clip from an earlier bushfire season where a firefighter encountered a scorched Koala - and offered it a drink from his water bottle. That seemed to receive universal approval, but such is the mood of social media today that a repeat would most likely bring cynics to the fore.
Just such a story emerged from the fire devastation that has been destroying so many homes in the suburbs of Los Angeles. The news cycle is enlivened by the contributions from ordinary citizens who use the camera in their Smartphones to grab their five minutes of fame.
It seems that Oscar Gonzales was driving home along a highway flanked by flames when he spotted a rabbit desperately trying to outpace the fire. He got out of his car and with a massive wall of flames as the backdrop, raced onto the roadside and scooped up the rabbit. Another citizen recorded this event on his or her phone, and the clip was offered to a Los Angeles television network.
The clever news editors thought that this was just the right clip to lighten the panorama of burning homes that the traditional Santa Anna wind was once again inflicting on California. Oscar became an instant hero and most people applauded his brave action to save endangered wildlife.
This " Rabbit Rescue " quickly went coast to coast in the television news cycle and from there got an instant airing on social media. That picture of Oscar backlit by flames and with the rabbit in his hands went viral and was probably viewed by a billion people.
Not all approved of his action. The story has sparked a lively debate about whether his actions were helpful - or whether he triggered a disaster. It has been suggested that perhaps that rabbit was not running from the fire, but trying to reach a litter of babies. That sparked a story in some sections of the media that suggested that " the wildlife rescuer may have doomed a litter of baby rabbits ".
Unfortunately, this is a story that has no happy ending. Oscar thought of taking that rabbit to a rescue centre but they were all closed. It is assumed that he released it when he reached an area safe from fire and it is now establishing a new home in an unfamiliar bush setting. We will never know. The news cycle has moved to other events - and that rabbit was yesterdays story !
It would be interesting to know how this changed the life of the man who saved the rabbit. His family, friends and the people associated with his work will all have an opinion and most will be favourable, but it seems inevitable that he will face criticism from some. Such is the price of instant fame.
Many here in Australia may remember a film clip from an earlier bushfire season where a firefighter encountered a scorched Koala - and offered it a drink from his water bottle. That seemed to receive universal approval, but such is the mood of social media today that a repeat would most likely bring cynics to the fore.
Monday, 11 December 2017
Burying the Dead !
As a predominantly Christian country, Australia adopted the English custom of disposing of the dead by digging a hole six feet deep and making that the final resting place of the deceased. In some instances, families purchased additional land to house a crypt where various generations could be accommodated. It became customary for some graves to be decorated with expensive statuary and often this was used to display the wealth and stature of whoever was buried there.
Put plainly, Sydney is fast running out of grave sites. If there is no change to the ratio of cremations to burials, cemetery capacity in greater Sydney will be exhausted by 2051. All attempts to create new burial grounds face stiff opposition from the public. The only option seems to be " renewable rights " where sites are reused unless the family pays renewal fees at twenty-five year intervals.
There are 851 working cemeteries in New South Wales, but only two - Waverley and Kemps Creek Cemeteries - offer this renewable rights option. Public reaction to the permanency question is mixed. Most people would prefer grave sites to remain undisturbed forever, but the cost of a burial is moving out of reach of many families and consequently cremations are gaining favour.
In the distant past, each suburb set ground aside for a local cemetery and close relatives tended those graves as a mark of respect for the dead. We now live in a changing world where people move to distant cities and even different countries as the job market changes and many of those old cemeteries are now filled to capacity, but rarely visited by relatives. They have become an untidy blot on the landscape.
Perhaps this space shortage presents an opportunity for the funeral industry to present a new option to the public. Having a cemetery close to each suburb has long given way to vast cemeteries like Rookwood and now the concept of burials which do not have a time term need to move to the country.
Many picturesque but struggling country towns would welcome the revival brought by a new funeral industry. In fact, such would be the revival of an old custom. Before cars became a means of transport for the masses, Sydney maintained what was called the " Mortuary Station " in the inner city from which grieving families travelled by train to distant suburban cemeteries. It seems that the time has arrived to relocate those city cemeteries to where pleasant locations can provide the space for undisturbed graves and burials can remain within the cost structure of ordinary families.
Custom has displaced ornate statuary above graves and the lawn cemetery is now in vogue. It is a simple fact of life that once a generation or so has passed the interest in family graves wanes and so these modern country cemeteries should remain viable indefinitely.
The day of city funerals is coming to a close. The funeral industry needs to adapt to new possibilities if it is to survive.
Put plainly, Sydney is fast running out of grave sites. If there is no change to the ratio of cremations to burials, cemetery capacity in greater Sydney will be exhausted by 2051. All attempts to create new burial grounds face stiff opposition from the public. The only option seems to be " renewable rights " where sites are reused unless the family pays renewal fees at twenty-five year intervals.
There are 851 working cemeteries in New South Wales, but only two - Waverley and Kemps Creek Cemeteries - offer this renewable rights option. Public reaction to the permanency question is mixed. Most people would prefer grave sites to remain undisturbed forever, but the cost of a burial is moving out of reach of many families and consequently cremations are gaining favour.
In the distant past, each suburb set ground aside for a local cemetery and close relatives tended those graves as a mark of respect for the dead. We now live in a changing world where people move to distant cities and even different countries as the job market changes and many of those old cemeteries are now filled to capacity, but rarely visited by relatives. They have become an untidy blot on the landscape.
Perhaps this space shortage presents an opportunity for the funeral industry to present a new option to the public. Having a cemetery close to each suburb has long given way to vast cemeteries like Rookwood and now the concept of burials which do not have a time term need to move to the country.
Many picturesque but struggling country towns would welcome the revival brought by a new funeral industry. In fact, such would be the revival of an old custom. Before cars became a means of transport for the masses, Sydney maintained what was called the " Mortuary Station " in the inner city from which grieving families travelled by train to distant suburban cemeteries. It seems that the time has arrived to relocate those city cemeteries to where pleasant locations can provide the space for undisturbed graves and burials can remain within the cost structure of ordinary families.
Custom has displaced ornate statuary above graves and the lawn cemetery is now in vogue. It is a simple fact of life that once a generation or so has passed the interest in family graves wanes and so these modern country cemeteries should remain viable indefinitely.
The day of city funerals is coming to a close. The funeral industry needs to adapt to new possibilities if it is to survive.
Sunday, 10 December 2017
Jerusalem !
Three of the worlds great religions have the city of Jerusalem as a pivotal point of how their faith evolved. Centuries ago great armies locked in battle as Christian Crusaders fought Islam for control of the holy city from which the Jews of the world had been earlier dispersed. The city has settled into an uneasy peace as its status remains undecided - until this weeks startling announcement by Donald Trump, the American president.
Trump has recognised Jerusalem as the capital of Israel and has said that he will move the American embassy from Tel Aviv in recognition of its new status. Within hours of that announcement clashes commenced between Palestinian demonstrators and the Israeli military. There are calls for a new intifada and it seems certain that there will be many deaths as this issue becomes a battle between rock throwing mobs and retaliatory rubber bullet fire from security forces.
It dashes any last hope of success in negotiating a peace deal which involves a separate Palestinian state alongside Israel, although further progress has seemed unlikely. By naming Jerusalem as the Israeli capital Trump has endorsed the Israeli claim and put the American military might on the line to underpin whatever outcome that evolves.
What is causing concern in the minds of other world leaders is the complete lack of warning that Donald Trump was going to interfere in such a delicate matter. There was no back channel discussion and even Trump's Secretary of State was left bemused. It is highly likely that this matter was decided by discussion between Trump and his son in law. The entire American political system was kept out of the loop and many may now question the presidents sanity !
The Presidential system places great power in the hands of the person elected to govern from the Oval office, but there is the expectation that this will be used wisely. Previous presidents surrounded themselves with advisers with intimate knowledge to guide their decisions but this president seems to rely on an ever changing group which he ignores in favour of advice from his own family. Many of his decisions are released to the public - and the world - by way of a tweet on Twitter or a rambling diatribe on Facebook.
Donald Trump gathered the votes to win office by presenting himself in a populist guise that appealed to the many whose job prospects and incomes had been downgraded by globalization. He made many utopian promises that were deemed unsupportable by most thinking people, but which appealed to those with a limited knowledge of both economics and the world trade system. He broadly promised to take America back to the prosperous nineteen fifties - completely ignoring the fact that this era has been supplanted by a changed world order.
It seems likely that an alarmed Congress may now seek to limit Presidential power, but how that may be achieved is unclear. His interference in the affairs of the state of Israel by naming Jerusalem as its capital is both alarming and has the potential for other unwise decisions. Obviously, the prospect of a man like Donald Trump winning presidential office never entered the head of the founding fathers when they worded the Declaration of Independence
Trump has recognised Jerusalem as the capital of Israel and has said that he will move the American embassy from Tel Aviv in recognition of its new status. Within hours of that announcement clashes commenced between Palestinian demonstrators and the Israeli military. There are calls for a new intifada and it seems certain that there will be many deaths as this issue becomes a battle between rock throwing mobs and retaliatory rubber bullet fire from security forces.
It dashes any last hope of success in negotiating a peace deal which involves a separate Palestinian state alongside Israel, although further progress has seemed unlikely. By naming Jerusalem as the Israeli capital Trump has endorsed the Israeli claim and put the American military might on the line to underpin whatever outcome that evolves.
What is causing concern in the minds of other world leaders is the complete lack of warning that Donald Trump was going to interfere in such a delicate matter. There was no back channel discussion and even Trump's Secretary of State was left bemused. It is highly likely that this matter was decided by discussion between Trump and his son in law. The entire American political system was kept out of the loop and many may now question the presidents sanity !
The Presidential system places great power in the hands of the person elected to govern from the Oval office, but there is the expectation that this will be used wisely. Previous presidents surrounded themselves with advisers with intimate knowledge to guide their decisions but this president seems to rely on an ever changing group which he ignores in favour of advice from his own family. Many of his decisions are released to the public - and the world - by way of a tweet on Twitter or a rambling diatribe on Facebook.
Donald Trump gathered the votes to win office by presenting himself in a populist guise that appealed to the many whose job prospects and incomes had been downgraded by globalization. He made many utopian promises that were deemed unsupportable by most thinking people, but which appealed to those with a limited knowledge of both economics and the world trade system. He broadly promised to take America back to the prosperous nineteen fifties - completely ignoring the fact that this era has been supplanted by a changed world order.
It seems likely that an alarmed Congress may now seek to limit Presidential power, but how that may be achieved is unclear. His interference in the affairs of the state of Israel by naming Jerusalem as its capital is both alarming and has the potential for other unwise decisions. Obviously, the prospect of a man like Donald Trump winning presidential office never entered the head of the founding fathers when they worded the Declaration of Independence
Saturday, 9 December 2017
Sky High Water Bills !
Remember those balmy days of yesteryear when most homes had a magnificently green lawn to compliment their suburban setting ? Drive through on a summer day and it was usual to see countless sprinklers at work nourishing that grass with unlimited water.
A report on Australian water is predicting that this commodity is about to join electricity and gas with ever rising bills. The days of cheap water are over and we can blame a multitude of reasons for the coming price hikes.
High on the list is the popularity of our state capital cities. It is expected that Sydney, Melbourne, Perth and Brisbane will swell by almost six million people by 2031. The existing water system and its source can not cope with those numbers and will require almost complete duplication. In many suburbs, this reticulation is over a hundred years old.
Some cities splurged on expensive desalination plants when there was a fear of a water shortage and generally these are unused as that crisis passed. The eleven billion dollars involved in buying these plants has blocked more progressive water plans and prevented the economics that could have delivered cheaper water.
Unhelpfully, we abolished the National Water Commission in 2015 and it was this body that was responsible for planning the future water needs of the nation. We now have no national oversight of water management or reform issues. Individual states make their own arrangements and very often these have a chain effect on supplies for other users.
The unknown factor is climate change. We have a hotter planet and it seems likely that there will be changes in rainfall patterns. Some of the water we drink comes from snow melt and it is quite clear that the winter snow depth is retreating. Our water access is based on past rainfall patterns and if that changes we may need to go further for supplies - and perhaps the quantity available has to be shared with other users.
This report contains a prediction of what we will pay for water in the future. The typical water and sewerage bill has risen by about eight percent each year after inflation to about $ 1226 in 2017. In todays dollars, they will reach $ 1827 in 2027 and more than double to around $2550 by 2040 - and those are optimistic estimates.
The day is fast coming when we will need to treat water like most other commodities that we buy - with care because it is a costly item. When we have a luxuriously deep bath or take a very long shower we will need to remember that the meter is ticking away with the quantity being used, and that is a significant lifestyle change.
A report on Australian water is predicting that this commodity is about to join electricity and gas with ever rising bills. The days of cheap water are over and we can blame a multitude of reasons for the coming price hikes.
High on the list is the popularity of our state capital cities. It is expected that Sydney, Melbourne, Perth and Brisbane will swell by almost six million people by 2031. The existing water system and its source can not cope with those numbers and will require almost complete duplication. In many suburbs, this reticulation is over a hundred years old.
Some cities splurged on expensive desalination plants when there was a fear of a water shortage and generally these are unused as that crisis passed. The eleven billion dollars involved in buying these plants has blocked more progressive water plans and prevented the economics that could have delivered cheaper water.
Unhelpfully, we abolished the National Water Commission in 2015 and it was this body that was responsible for planning the future water needs of the nation. We now have no national oversight of water management or reform issues. Individual states make their own arrangements and very often these have a chain effect on supplies for other users.
The unknown factor is climate change. We have a hotter planet and it seems likely that there will be changes in rainfall patterns. Some of the water we drink comes from snow melt and it is quite clear that the winter snow depth is retreating. Our water access is based on past rainfall patterns and if that changes we may need to go further for supplies - and perhaps the quantity available has to be shared with other users.
This report contains a prediction of what we will pay for water in the future. The typical water and sewerage bill has risen by about eight percent each year after inflation to about $ 1226 in 2017. In todays dollars, they will reach $ 1827 in 2027 and more than double to around $2550 by 2040 - and those are optimistic estimates.
The day is fast coming when we will need to treat water like most other commodities that we buy - with care because it is a costly item. When we have a luxuriously deep bath or take a very long shower we will need to remember that the meter is ticking away with the quantity being used, and that is a significant lifestyle change.
Few people today put a great value on the water that reaches their home. They simply regard it as that stuff that falls from the sky. It may in future choose to do so less often, or in different places. The one certainty is that water is about to start costing us in similar measure to gas and electricity. The size of the bill depends on how much we use !
Friday, 8 December 2017
The " Public Housing " Question !
Sirius is an example of what is described as " brutalist architecture " style which happened to get built where it has sweeping views of both the Opera House and the Harbour bridge. It exceeds what is now the permitted height for the iconic Rocks area and its apartments are in need of a very costly makeover to bring them to a modern standard. Since 1980 they have provided accommodation for public housing tenants.
The existing tenants are fighting tooth and nail to have this building preserved as Housing Commission stock because they don't want to lose their fabulous views, and that is understandable but it is that view that would bring more than a hundred million dollars it the site were was offered on the open market.
Developers would pay a fortune to demolish and build modern housing which would actually be smaller than the existing building. The plans for a new building would need to be no higher than the bridge decking and make no restriction to sight lines from the bridge to the Opera House. The building would provide a similar return if the apartments were offered for public sale and the new owners allowed to make their own internal renovations. That would probably satisfy the many people who wish to see the building preserved or added to the heritage register.
The fate of Sirius is similar to what is happening to older public housing at Millers Point. This also have sweeping harbour views and are being sold for redevelopment with the funds going to create more public housing on the outskirts of the city. For each Millers Point property sold, the funds build five new homes. So far this has resulted in 700 new public housing homes being added to the stock and another 372 under construction.
Those with socialist views complain that public housing tenants are being denied space in opulent suburbs with pleasing views to make way for rich people. We have a long waiting list for public housing and it is a matter of economics that selling properties which have added value frees the funds to create a greater number of homes where the site value is lower.
Some would question the wisdom of new public housing being sited far from the city centre and mainly composing free standing houses on individual building blocks. This is ideal for families with small children, but it runs counter to what is happening in the general population. More families are being forced to adopt apartment living and perhaps public housing should concentrate on this provision.
Those far outer suburbs face a transport problem accessing city jobs and this adds to traffic congestion and the toll cost to provide labour for low wage essential jobs that keep the city functioning. More apartment public housing would be welcome on high volume transit routes being served by new trams and the metro.
It should also be remembered that public housing was never intended to be an offer of a home for life. For the average person it was an interim measure while they developed their skills and moved to a higher income that allowed them to move to home ownership, or to enter the public rental market.
It is essential that public housing stock be continually turned over to generate the funds to increase the volume. Public housing will never meet demand and the argument to retain public housing because it has nice views falls short on reality grounds. Few languishing on the waiting list would accept that point of view !
The existing tenants are fighting tooth and nail to have this building preserved as Housing Commission stock because they don't want to lose their fabulous views, and that is understandable but it is that view that would bring more than a hundred million dollars it the site were was offered on the open market.
Developers would pay a fortune to demolish and build modern housing which would actually be smaller than the existing building. The plans for a new building would need to be no higher than the bridge decking and make no restriction to sight lines from the bridge to the Opera House. The building would provide a similar return if the apartments were offered for public sale and the new owners allowed to make their own internal renovations. That would probably satisfy the many people who wish to see the building preserved or added to the heritage register.
The fate of Sirius is similar to what is happening to older public housing at Millers Point. This also have sweeping harbour views and are being sold for redevelopment with the funds going to create more public housing on the outskirts of the city. For each Millers Point property sold, the funds build five new homes. So far this has resulted in 700 new public housing homes being added to the stock and another 372 under construction.
Those with socialist views complain that public housing tenants are being denied space in opulent suburbs with pleasing views to make way for rich people. We have a long waiting list for public housing and it is a matter of economics that selling properties which have added value frees the funds to create a greater number of homes where the site value is lower.
Some would question the wisdom of new public housing being sited far from the city centre and mainly composing free standing houses on individual building blocks. This is ideal for families with small children, but it runs counter to what is happening in the general population. More families are being forced to adopt apartment living and perhaps public housing should concentrate on this provision.
Those far outer suburbs face a transport problem accessing city jobs and this adds to traffic congestion and the toll cost to provide labour for low wage essential jobs that keep the city functioning. More apartment public housing would be welcome on high volume transit routes being served by new trams and the metro.
It should also be remembered that public housing was never intended to be an offer of a home for life. For the average person it was an interim measure while they developed their skills and moved to a higher income that allowed them to move to home ownership, or to enter the public rental market.
It is essential that public housing stock be continually turned over to generate the funds to increase the volume. Public housing will never meet demand and the argument to retain public housing because it has nice views falls short on reality grounds. Few languishing on the waiting list would accept that point of view !
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