Life must be rather frightening for those facing retirement in the months ahead. Compulsory superannuation has been in force for over twenty years, hence those about to retire know that there should be a nest egg awaiting them.
The problem is that it's size is shrouded in mystery !
The unknown factor is what toxic CDO content is hidden away in superannuation fund assets. This is labelled " commercial confidentiality"and is not spoken about in polite circles - and yet that will determine how long the nest egg will support superannuation years.
There is also the question of how it will be treated by Centrelink !
Superannuation has a theoretical value as claimed by the investing company and Centrelink uses this in determining a persons assets. This asset valuation is then used to determine what - if any - pension the retiree is entitled to - and will further determine what fee will be paid when eventually a nursing home admission is necessary.
The problem is that this " theoretical valuation " does not necessarily have any bearing on the true value. Just try selling that asset and you will find that there are no takers at this assumed value.
The true value will only emerge when the funds finally reveal what degree of toxic assets make up their balance - and that will not happen until the government plans finally result in those CDO's being dragged kicking and screaming into the cold, hard light of day for disposal.
Until that happens - people about to retire do so in a fog of mystery !
Thursday, 30 April 2009
Wednesday, 29 April 2009
Liquor law madness !
What a dog's breakfast our liquor laws have become ! To try and control unruly behaviour we have a lock-out time. After that, entry or re-entry to licensed premises is barred - and drinkers supposedly have no other option than to go home.
Now new laws are proposed to shut down any outlet offering food at 2 am. The intent is to curb those locked out drinkers wandering the mall and other places seeking a kebab stand to appease their hunger from causing trouble.
There seems to be only one fly in the ointment. Those already with a permit will be allowed to stay open - and the ban will only apply to new operators. Hardly a welcome to new business in this city - and hardly fair to all business people.
We have always had crazy liquor laws. Do you remember the days when the pubs were shut on a Sunday ? But the clubs were open for business ?
So a club member was free to consume as much alcohol as he or she wished - provided they did it on club premises, but if they were a responsible person and preferred to buy alcohol and indulge in the safety of their home - that was against the law !
The pubs used their muscle to stop bottle sales in clubs on a Sunday because they were not permitted to open - and therefore they claimed it was unfair competition - and the politicians went along with that insanity !
It would be interesting to hold a referendum when there eventually is a council election with a choice of closing all outlets selling liquor at 2 am.
After all, anyone who can't get enough grog under the belt by 2 am could be accused of not trying hard enough !
Now new laws are proposed to shut down any outlet offering food at 2 am. The intent is to curb those locked out drinkers wandering the mall and other places seeking a kebab stand to appease their hunger from causing trouble.
There seems to be only one fly in the ointment. Those already with a permit will be allowed to stay open - and the ban will only apply to new operators. Hardly a welcome to new business in this city - and hardly fair to all business people.
We have always had crazy liquor laws. Do you remember the days when the pubs were shut on a Sunday ? But the clubs were open for business ?
So a club member was free to consume as much alcohol as he or she wished - provided they did it on club premises, but if they were a responsible person and preferred to buy alcohol and indulge in the safety of their home - that was against the law !
The pubs used their muscle to stop bottle sales in clubs on a Sunday because they were not permitted to open - and therefore they claimed it was unfair competition - and the politicians went along with that insanity !
It would be interesting to hold a referendum when there eventually is a council election with a choice of closing all outlets selling liquor at 2 am.
After all, anyone who can't get enough grog under the belt by 2 am could be accused of not trying hard enough !
Tuesday, 28 April 2009
Piracy - and the law of the sea.
The attack by pirates on the Italian cruise ship Melody had an unusual outcome. The pirates fired small arms and RPG's - and the Israeli security people on the ship returned fire. The pirates then hastily retreated.
Usually merchant shipping can only fight back with fire hoses, but the interesting thing is the power a sea captain has at his disposal because of the ancient laws that have never been repealed.
Centuries ago many voyages took years. A ship in international waters was subjected to no land based law, and consequently a ship's captain had the authority to conduct both marriages and burials.
Basically, the captain had all the powers of a land based king, juror and magistrate rolled into one - and that included the right to hang any pirate caught trying to seize his ship.
That law still stands. Had the Melody disabled an attacking boat and captured the pirates in international waters the captain would have been within his rights to hold a court hearing, sentence the offenders to death - and have them hung from whatever serves as a yardarm these days.
No doubt some civil liberties types would scream blue murder, but the way things are heading in that part of the Indian ocean we are likely to see more armed merchant ships - and one day an aggressive captain may reclaim his rights.
It should be remembered that a century or so ago, most commercial sailing ships carried the odd cannon for defence against pirates.
Perhaps life is coming full circle !
Usually merchant shipping can only fight back with fire hoses, but the interesting thing is the power a sea captain has at his disposal because of the ancient laws that have never been repealed.
Centuries ago many voyages took years. A ship in international waters was subjected to no land based law, and consequently a ship's captain had the authority to conduct both marriages and burials.
Basically, the captain had all the powers of a land based king, juror and magistrate rolled into one - and that included the right to hang any pirate caught trying to seize his ship.
That law still stands. Had the Melody disabled an attacking boat and captured the pirates in international waters the captain would have been within his rights to hold a court hearing, sentence the offenders to death - and have them hung from whatever serves as a yardarm these days.
No doubt some civil liberties types would scream blue murder, but the way things are heading in that part of the Indian ocean we are likely to see more armed merchant ships - and one day an aggressive captain may reclaim his rights.
It should be remembered that a century or so ago, most commercial sailing ships carried the odd cannon for defence against pirates.
Perhaps life is coming full circle !
Monday, 27 April 2009
Pandemic !
Once again the World Health Organization ( WHO ) is warning of a possible pandemic. An animal disease has crossed over and combined with a human disease and this combination is something against which we have no natural immunity.
Bird flu was the last scare, and this time it is swine flu that presents a threat to the human race.
The last great pandemic was in 1918, just when the troops were returning from the first world war - and consequently the disease spread rapidly and killed millions. Since then, we have been lucky.
Pandemics are an act of nature. It is nature's way of dealing with overcrowding in the animal world - and we humans are just higher animals.
From time to time various species over produce and reach plague proportions. Sometimes this is because food is too plentiful and sometimes some cog of nature slips and bountiful conditions lead to a surplus of offspring.
When this happens, nature seems to intervene and produce a means of culling that reduces numbers to manageable proportions.
It is a chilling thought that when the past century started there was barely two billion people on this planet. Now we are fast approaching seven billion - and there is a doubt as to whether we have the capacity to feed that number.
The present recession will not help. When money is short and times are hard people slam their wallets shut - and one of the early casualties are the international welfare organizations which provide food, medicine and shelter to the world's poor.
We are already seeing food riots because of rising food prices - and scientists tell us that global warming will make water an item in short supply in many parts of the world.
Just like the animal kingdom, we humans may have over bred our numbers. Perhaps a pandemic is nature's way of culling the tribe to manageable proportions.
At least it would be more humane than a war !
Bird flu was the last scare, and this time it is swine flu that presents a threat to the human race.
The last great pandemic was in 1918, just when the troops were returning from the first world war - and consequently the disease spread rapidly and killed millions. Since then, we have been lucky.
Pandemics are an act of nature. It is nature's way of dealing with overcrowding in the animal world - and we humans are just higher animals.
From time to time various species over produce and reach plague proportions. Sometimes this is because food is too plentiful and sometimes some cog of nature slips and bountiful conditions lead to a surplus of offspring.
When this happens, nature seems to intervene and produce a means of culling that reduces numbers to manageable proportions.
It is a chilling thought that when the past century started there was barely two billion people on this planet. Now we are fast approaching seven billion - and there is a doubt as to whether we have the capacity to feed that number.
The present recession will not help. When money is short and times are hard people slam their wallets shut - and one of the early casualties are the international welfare organizations which provide food, medicine and shelter to the world's poor.
We are already seeing food riots because of rising food prices - and scientists tell us that global warming will make water an item in short supply in many parts of the world.
Just like the animal kingdom, we humans may have over bred our numbers. Perhaps a pandemic is nature's way of culling the tribe to manageable proportions.
At least it would be more humane than a war !
Sunday, 26 April 2009
A silly question !
Prime Minister Kevin Rudd is trying to move away from his promise to hold a referendum on moving to a republic. Greens leader Bob Brown is trying to have that question included in the vote at the next Federal election.
The monarchy has served us well and a change to a republic would have no real benefit for this country - other than to massage some egos. It would cost a lot of money - not least the reprinting of all Commonwealth stationery - including our banknotes - and the renaming of all institutions prefaced with the word " Royal ".
Let us consider how it would look if we were already a republic - and we were considering returning to an Australian monarchy.
The task would be to find an Australian to elevate to the position of king. That person would have to be very special, because in perpetuity his offspring would rule this country and have a life of great privilege.
Even selecting a king would be argumentative. The women's movement would surely favour a feminine head of state. It could probably only be resolved by tossing a coin to decide which gender would be the primary ruler.
Then there would be the matter of rewriting the constitution to establish the rules under which the royal charter would rule.
In Britain neither the monarch or immediate heirs may be followers of the Roman Catholic church. Would an Australian monarchy be restricted to Christians ? Would Muslims be debarred from wearing the crown ?
Then there is the matter of a residence ! Obviously the king/queen would be required to live in Canberra, the national capital - but should there be a royal residence in each of the state capital cities ? And would this be a state or a Federal cost ?
In all probability the voters would baulk at the prospect of selecting an Australian citizen to assume the mantle of king in perpetuity. That simply does not make sense !
There is more appeal in voting into office a president every few years, because opinions change and a change of president brings with it a change of person - and a change of style.
When the decision on a republic or a monarchy is eventually made by the voters - whenever that may be - considering the issue along these lines may be helpful !
The monarchy has served us well and a change to a republic would have no real benefit for this country - other than to massage some egos. It would cost a lot of money - not least the reprinting of all Commonwealth stationery - including our banknotes - and the renaming of all institutions prefaced with the word " Royal ".
Let us consider how it would look if we were already a republic - and we were considering returning to an Australian monarchy.
The task would be to find an Australian to elevate to the position of king. That person would have to be very special, because in perpetuity his offspring would rule this country and have a life of great privilege.
Even selecting a king would be argumentative. The women's movement would surely favour a feminine head of state. It could probably only be resolved by tossing a coin to decide which gender would be the primary ruler.
Then there would be the matter of rewriting the constitution to establish the rules under which the royal charter would rule.
In Britain neither the monarch or immediate heirs may be followers of the Roman Catholic church. Would an Australian monarchy be restricted to Christians ? Would Muslims be debarred from wearing the crown ?
Then there is the matter of a residence ! Obviously the king/queen would be required to live in Canberra, the national capital - but should there be a royal residence in each of the state capital cities ? And would this be a state or a Federal cost ?
In all probability the voters would baulk at the prospect of selecting an Australian citizen to assume the mantle of king in perpetuity. That simply does not make sense !
There is more appeal in voting into office a president every few years, because opinions change and a change of president brings with it a change of person - and a change of style.
When the decision on a republic or a monarchy is eventually made by the voters - whenever that may be - considering the issue along these lines may be helpful !
Saturday, 25 April 2009
A tiger by the tail !
Kevin Rudd's government has a decisive decision to make ! Whether to end the first home buyer's scheme at the end of June - or to let it continue for another six months.
Damned if he does ... and damned if he doesn't !
If the scheme ends in June it is inevitable that the Real estate industry, the building industry and the huge supply infrastructure that supports the building industry will fall in a hole !
The sale of homes will slow to a trickle and there will be a vast lay off of sales people, those in the building trade - and the vast factory spectrum that produces building products.
The generous first home grants that provide $ 14,000 for existing home purchases and $ 21,000 for newly built homes has produced a reason to concentrate sales in the present time structure. When it ends, there will be an inevitable hiatus.
There have also been unintended repercussions for those in the renting market. The rush to get a foot on the home ownership ladder has concentrated home sales on the lower end of the price market, and induced the owners of rental stock to sell while prices are more favourable.
As a result, rent costs have risen sharply and there is a gross under supply of rental accommodation. We are therefore facing an increase in the number of homeless people - unable to find a place to rent at an affordable price.
On the other side of the equation, the ranks of first home buyers are mostly those who have borrowed to the max - and are young and vulnerable to job loss if the ranks of unemployed do exceed ten percent - as is predicted by many economists.
The first home grant scheme will have been a boon to many - provided this recession is short lived and does not become extreme. Otherwise it is simply a money trap - leading to default - home loss - and in many cases an ongoing debt if a price massacre erupts because of home resumptions by the banks.
The government may be wise to ease itself out of this dilemma slowly. Stopping the scheme dead in the water may be nothing short of disaster.
Perhaps the better option would be to retain the scheme, but to lower the grant progressively over a five year period. At least then those not sufficiently financially stable would have reason to wait a few months more rather than jumping in to meet a deadline.
In politics - the hardest decision is the one where something given is being withdrawn.
That has a tendency to swiftly come full circle - and bite you on the bum !
Damned if he does ... and damned if he doesn't !
If the scheme ends in June it is inevitable that the Real estate industry, the building industry and the huge supply infrastructure that supports the building industry will fall in a hole !
The sale of homes will slow to a trickle and there will be a vast lay off of sales people, those in the building trade - and the vast factory spectrum that produces building products.
The generous first home grants that provide $ 14,000 for existing home purchases and $ 21,000 for newly built homes has produced a reason to concentrate sales in the present time structure. When it ends, there will be an inevitable hiatus.
There have also been unintended repercussions for those in the renting market. The rush to get a foot on the home ownership ladder has concentrated home sales on the lower end of the price market, and induced the owners of rental stock to sell while prices are more favourable.
As a result, rent costs have risen sharply and there is a gross under supply of rental accommodation. We are therefore facing an increase in the number of homeless people - unable to find a place to rent at an affordable price.
On the other side of the equation, the ranks of first home buyers are mostly those who have borrowed to the max - and are young and vulnerable to job loss if the ranks of unemployed do exceed ten percent - as is predicted by many economists.
The first home grant scheme will have been a boon to many - provided this recession is short lived and does not become extreme. Otherwise it is simply a money trap - leading to default - home loss - and in many cases an ongoing debt if a price massacre erupts because of home resumptions by the banks.
The government may be wise to ease itself out of this dilemma slowly. Stopping the scheme dead in the water may be nothing short of disaster.
Perhaps the better option would be to retain the scheme, but to lower the grant progressively over a five year period. At least then those not sufficiently financially stable would have reason to wait a few months more rather than jumping in to meet a deadline.
In politics - the hardest decision is the one where something given is being withdrawn.
That has a tendency to swiftly come full circle - and bite you on the bum !
Friday, 24 April 2009
Atlas Shrugged.
There is a book all thinking people should read. It is titled " Atlas Shrugged " and it was written back in the 1930's by Ayn Rand. This writer died in 1982.
The 1930's brought with it " the Great Depression " and Rand's book is a thinly disguised account of a world that has embraced this new philosophy - Communism.
It was very relevant at that time. The Russian revolution was a recent event and to many people state ownership made an attractive appeal. No more rich people ! No more struggling with a house mortgage. No more competing with others for a good job.
It would be the responsibility of the state to provide everything. It absolved the individual of the need to - think !
We have seen how Communism destroyed initiative and the " command economy " reduced incentive to a " one size fits all " mentality. It still only exists in a few backward regimes where sheer military force keeps it in power.
But an equally destructive idea overtook capitalism. Globalization emerged with the credo of sharing work to those people who did it best. As a consequence, production of goods went offshore to countries with big populations - and as a consequence - a very low wage structure.
The rich countries ceased to produce goods and this work devolved to the world's poor. To keep people employed the rich countries invented " social " industries which returned intangible benefits - but could not be traded externally.
The result was huge balance of payment debts, and to fulfill this trade desert the minds of the great and powerful devised artificial schemes which were based on foundations of clay.
In due course, natural attrition took hold - and capitalism finds itself in the mess we are facing today.
Ayn Rand was a perceptive woman and in Atlas Shrugged she has drawn a vivid picture of the events leading up to the present recession - which could easily repeat the depression of the 1930's.
The moral of her story is applicable to today. We can not consume more than we produce - and we have entered an age when production is constantly decreasing.
Rand's story ends on a happy note reminiscent of a child's fairy tale - but the events she describes bears a striking similarity to what is happening in the western world today !
The 1930's brought with it " the Great Depression " and Rand's book is a thinly disguised account of a world that has embraced this new philosophy - Communism.
It was very relevant at that time. The Russian revolution was a recent event and to many people state ownership made an attractive appeal. No more rich people ! No more struggling with a house mortgage. No more competing with others for a good job.
It would be the responsibility of the state to provide everything. It absolved the individual of the need to - think !
We have seen how Communism destroyed initiative and the " command economy " reduced incentive to a " one size fits all " mentality. It still only exists in a few backward regimes where sheer military force keeps it in power.
But an equally destructive idea overtook capitalism. Globalization emerged with the credo of sharing work to those people who did it best. As a consequence, production of goods went offshore to countries with big populations - and as a consequence - a very low wage structure.
The rich countries ceased to produce goods and this work devolved to the world's poor. To keep people employed the rich countries invented " social " industries which returned intangible benefits - but could not be traded externally.
The result was huge balance of payment debts, and to fulfill this trade desert the minds of the great and powerful devised artificial schemes which were based on foundations of clay.
In due course, natural attrition took hold - and capitalism finds itself in the mess we are facing today.
Ayn Rand was a perceptive woman and in Atlas Shrugged she has drawn a vivid picture of the events leading up to the present recession - which could easily repeat the depression of the 1930's.
The moral of her story is applicable to today. We can not consume more than we produce - and we have entered an age when production is constantly decreasing.
Rand's story ends on a happy note reminiscent of a child's fairy tale - but the events she describes bears a striking similarity to what is happening in the western world today !
" Weasel " words !
Who would trust any statement made by the James Hardie company ?
This building materials manufacturer used asbestos in it's products for decades after the deadly nature of asbestos was known. This caused the death of both employees and customers - until Hardies was dragged kicking and screaming to introduce a voluntary compensation scheme to compensate victims.
We now know that it's board of directors breached the Corporations Act when they deliberately claimed that the James Hardie Medical Research and Compensation Foundation was fully funded. It wasn't - and it had a shortfall of over $ 1 billion !
These directors face fines of $ 200,000 each and may be debarred from holding executive positions in public companies.
We now learn that Hardies are claiming that the recession is causing a " negative cash flow " and as a result contributions to the revamped compensation scheme will cease next year - and not restart until conditions improve.
Given Hardies previous attempts to mislead it should be noted that Hardie's rushed into this voluntary scheme to avoid a class court action that may have ended with the company being wound up.
They have a proven record of using " weasel words " to try and avoid their obligations and this latest claim does not specify just who will determine when things have improved to the point that compensation will resume.
Reduced dividends to shareholders should not be a reason to stop the money flow to victims.
It would be reasonable for the compensation fund to apply to the courts to have a court appointed trustee examine the day to day trading of James Hardie - and to have the responsibility of determining profitability.
On previous performance, Hardies honesty is suspect !
This building materials manufacturer used asbestos in it's products for decades after the deadly nature of asbestos was known. This caused the death of both employees and customers - until Hardies was dragged kicking and screaming to introduce a voluntary compensation scheme to compensate victims.
We now know that it's board of directors breached the Corporations Act when they deliberately claimed that the James Hardie Medical Research and Compensation Foundation was fully funded. It wasn't - and it had a shortfall of over $ 1 billion !
These directors face fines of $ 200,000 each and may be debarred from holding executive positions in public companies.
We now learn that Hardies are claiming that the recession is causing a " negative cash flow " and as a result contributions to the revamped compensation scheme will cease next year - and not restart until conditions improve.
Given Hardies previous attempts to mislead it should be noted that Hardie's rushed into this voluntary scheme to avoid a class court action that may have ended with the company being wound up.
They have a proven record of using " weasel words " to try and avoid their obligations and this latest claim does not specify just who will determine when things have improved to the point that compensation will resume.
Reduced dividends to shareholders should not be a reason to stop the money flow to victims.
It would be reasonable for the compensation fund to apply to the courts to have a court appointed trustee examine the day to day trading of James Hardie - and to have the responsibility of determining profitability.
On previous performance, Hardies honesty is suspect !
Thursday, 23 April 2009
Unemployment ?
It seems strange that the Australian Navy has six Collins class submarines - but can only find enough crew to send three of them to sea at any one time !
It takes highly skilled people to run a submarine - and there are drawbacks to the job. Long and boring periods at sea. Lack of contact with friends and family. A claustrophobic life that would not suit everyone !
Picking fruit has none of those problems - and yet farmers find it impossible to recruit the people necessary to get the crop to market. That is left to illegal migrants and the backpacker fraternity.
We are in a recession and the unemployment rate is rising steadily - and will probably top ten percent by the end of this year.
Are we too choosy about what we will do and where we will go to get work ?
It seems to be a fact of life that five percent of the population seem to have the skills to employ the other ninety-five percent. What makes that five percent either self employed or managing companies ?
Basically, it seems to be the ability to see an opportunity that needs servicing - and the gumption to get moving and provide the service that is needed.
Right now there are a lot of people who will shortly be out of a job. It might be a good idea if they stretch their imagination, open their eyes - and think outside the proverbial nine dots !
For some - a recession is an opportunity to try something new - something that would be unthinkable when jobs are freely offering.
An opportunity to work for the best boss in the world !
Worth thinking about !
It takes highly skilled people to run a submarine - and there are drawbacks to the job. Long and boring periods at sea. Lack of contact with friends and family. A claustrophobic life that would not suit everyone !
Picking fruit has none of those problems - and yet farmers find it impossible to recruit the people necessary to get the crop to market. That is left to illegal migrants and the backpacker fraternity.
We are in a recession and the unemployment rate is rising steadily - and will probably top ten percent by the end of this year.
Are we too choosy about what we will do and where we will go to get work ?
It seems to be a fact of life that five percent of the population seem to have the skills to employ the other ninety-five percent. What makes that five percent either self employed or managing companies ?
Basically, it seems to be the ability to see an opportunity that needs servicing - and the gumption to get moving and provide the service that is needed.
Right now there are a lot of people who will shortly be out of a job. It might be a good idea if they stretch their imagination, open their eyes - and think outside the proverbial nine dots !
For some - a recession is an opportunity to try something new - something that would be unthinkable when jobs are freely offering.
An opportunity to work for the best boss in the world !
Worth thinking about !
Wednesday, 22 April 2009
The " gang of four ! "
In recent days the Reserve bank of Australia marginally lowered interest rates. The four major Australian banks cried poor - and refused to pass these savings fully to mortgage holders - and now they are talking of raising interest rates to improve their bottom lines !
This type of behavior was not always so. There used to be competition between the banks - and the pace setter was the Commonwealth bank. The private banks kept an eye on the government owned bank any time they considered change because the CBA would not go along with disreputable behaviour.
All that changed when the Paul Keating government decided that the state had no business being in banking - and sold the Commonwealth to the public.
Immediately the Commonwealth joined the private banks to form " the gang of four " and formed a cartel to ruthlessly exploit their monopoly. A host of new charges emerged and any idea of competition flew out the window.
Kevin Rudd admits that Australia is in recession and hints that the coming budget will contain stimulatory measures.
The greatest benefit the government could grant would be to make the formation of a new, government owned bank a part of that budget plan !
Times have changed and there would be no need for a vast branch structure. The private banks have reduced exposure because business is now done through ATM's and EFTPOS - but the presence of a bank trading on honest principles would reign in the marauders and reintroduce a missing component of trade - fair competition.
One of the reasons we are in recession is because the capitalist trading world lacked regulation and moved to excess. As part of that excess, we have our banks forming a cartel and gouging profit from both business and individuals.
The ball is in Kevin Rudd's court. Reverse the Keating disaster and add a fifth, free thinking bank to the Australian economic scene to break the cartel's hold on the money market.
That is exactly the stimulation the coming budget needs !
This type of behavior was not always so. There used to be competition between the banks - and the pace setter was the Commonwealth bank. The private banks kept an eye on the government owned bank any time they considered change because the CBA would not go along with disreputable behaviour.
All that changed when the Paul Keating government decided that the state had no business being in banking - and sold the Commonwealth to the public.
Immediately the Commonwealth joined the private banks to form " the gang of four " and formed a cartel to ruthlessly exploit their monopoly. A host of new charges emerged and any idea of competition flew out the window.
Kevin Rudd admits that Australia is in recession and hints that the coming budget will contain stimulatory measures.
The greatest benefit the government could grant would be to make the formation of a new, government owned bank a part of that budget plan !
Times have changed and there would be no need for a vast branch structure. The private banks have reduced exposure because business is now done through ATM's and EFTPOS - but the presence of a bank trading on honest principles would reign in the marauders and reintroduce a missing component of trade - fair competition.
One of the reasons we are in recession is because the capitalist trading world lacked regulation and moved to excess. As part of that excess, we have our banks forming a cartel and gouging profit from both business and individuals.
The ball is in Kevin Rudd's court. Reverse the Keating disaster and add a fifth, free thinking bank to the Australian economic scene to break the cartel's hold on the money market.
That is exactly the stimulation the coming budget needs !
Tuesday, 21 April 2009
Our vertical village.
Planet earth is fast approaching seven billion inhabitants. Australia will soon be home to twenty three million people. They all need somewhere to live !
As part of the evolving process of meeting our future housing needs the Wollongong LEP will change to allow five story apartment blocks in suburbs adjacent to railway stations and transport hubs - and this will not please many people !
The economics of housing are fairly simple. We need to concentrate numbers where we have transport facilities and to make use of the existing water, power and sewer services - and the only way to do that is to go - up !
It is called the " vertical village ".
If we insist on the old system of ever expanding outwards we create urban sprawl - and create miles of new roads with a huge investment in servicing costs. At the same time, we destroy farmland and bring decreased living conditions to those forced to live in urban housing estates.
It will certainly be unsettling to many to find a change of housing style happening in their suburb, but then in the past change has been constant.
The quarter acre block is now a distant memory. Land sizes have reduced at the same time as houses have got bigger - and land use has changed from cottages to villas and town houses.
We live in an ever changing world. The past is a time now gone - and the future is about to burst upon us. There is no point in bemoaning change. We may not like it , but economics mean that the " vertical village " is here to stay.
As part of the evolving process of meeting our future housing needs the Wollongong LEP will change to allow five story apartment blocks in suburbs adjacent to railway stations and transport hubs - and this will not please many people !
The economics of housing are fairly simple. We need to concentrate numbers where we have transport facilities and to make use of the existing water, power and sewer services - and the only way to do that is to go - up !
It is called the " vertical village ".
If we insist on the old system of ever expanding outwards we create urban sprawl - and create miles of new roads with a huge investment in servicing costs. At the same time, we destroy farmland and bring decreased living conditions to those forced to live in urban housing estates.
It will certainly be unsettling to many to find a change of housing style happening in their suburb, but then in the past change has been constant.
The quarter acre block is now a distant memory. Land sizes have reduced at the same time as houses have got bigger - and land use has changed from cottages to villas and town houses.
We live in an ever changing world. The past is a time now gone - and the future is about to burst upon us. There is no point in bemoaning change. We may not like it , but economics mean that the " vertical village " is here to stay.
Monday, 20 April 2009
The big, bad banks !
The government has devised an unpleasant law to compensate mortgage holders when banks fail to fully pass on interest rate cuts. In such cases, exit fees will no longer apply when customers switch to another source of money.
The banks will scream blue murder, but they can not have it both ways. If they fail to pass on a legitimate saving, then this law will prevent them locking the stable door and preventing the horse from bolting.
There is another anomaly that has been long overdue in being brought to public attention - and that is the interest rates paid on savings accounts.
The big. bad banks pay no interest on savings accounts that hold less than five hundred dollars - no interest on money held in cheque accounts - and a pitiful interest of less than one percent on savings of more than five hundred dollars.
But - if that little old lady who has loaned them her savings for years without interest has a sudden death in the family - and needs $ 6,000 for a funeral - expects them to be generous and give her a loan at a reasonable rate of interest - think again !
They will offer her a credit card attached to either Visa or Mastercard with an interest rate somewhere between 15% and 22%, depending on whether the card has a reward programme.
It is even worse for those with a substantial balance in a cheque account. Not only no interest, but hefty charges for the privilege of parking your money in their bank !
The entire money spectrum - banks, credit unions and building societies are not keen to give reasonable interest on savings accounts - simply because they have been getting away with it for years - and it is very profitable.
About time banking laws changed in favour of the little people !
The banks will scream blue murder, but they can not have it both ways. If they fail to pass on a legitimate saving, then this law will prevent them locking the stable door and preventing the horse from bolting.
There is another anomaly that has been long overdue in being brought to public attention - and that is the interest rates paid on savings accounts.
The big. bad banks pay no interest on savings accounts that hold less than five hundred dollars - no interest on money held in cheque accounts - and a pitiful interest of less than one percent on savings of more than five hundred dollars.
But - if that little old lady who has loaned them her savings for years without interest has a sudden death in the family - and needs $ 6,000 for a funeral - expects them to be generous and give her a loan at a reasonable rate of interest - think again !
They will offer her a credit card attached to either Visa or Mastercard with an interest rate somewhere between 15% and 22%, depending on whether the card has a reward programme.
It is even worse for those with a substantial balance in a cheque account. Not only no interest, but hefty charges for the privilege of parking your money in their bank !
The entire money spectrum - banks, credit unions and building societies are not keen to give reasonable interest on savings accounts - simply because they have been getting away with it for years - and it is very profitable.
About time banking laws changed in favour of the little people !
Sunday, 19 April 2009
Boat people !
A growing threat to Kevin Rudd's dominance of Australian politics is the increasing flow of people smugglers arriving off Ashmore Reef.
Rudd has had a dream run in the eighteen months he has held office, despite the economic downturn. The impression is that he is a " can do " prime minister and so far he has barely put a foot wrong on many fronts.
The explosion on a refugee boat has caused panic in government ranks. A veil of silence has descended and it seems that there are desperate efforts to maintain that silence until a coronial enquiry is completed - and that will be many months away.
John Howard was criticised - but had the support of the majority of Australians - when he came down hard on people smugglers dumping paid passengers on Australian territory. The " Tampa " affair and " children overboard " hit the headlines, but when illegals were subjected to the " Pacific Solution " and processed offshore the public applauded - and stopped the arrivals in their tracks.
When Labor won office it had a different outlook. New arrivals are not automatically processed offshore and at least women and children are not locked up - but allowed to live in the community.
It was a clear signal to the people smugglers. Australia was again a soft touch. It took months to reestablish the supply lines and set up the regime, but before Christmas the first boats started to appear - and now the flow is set to sharply increase.
This could be the turning point for Rudd's popularity. The majority of Australians are opposed to illegals jumping the queue - and demanding to be allowed to settle on our shores. Most may be fleeing war and privation, but they are also people who are paying people smugglers thousands of dollars for their journey - and depriving legitimate migrants patiently waiting in refugee camps for their turn to be considered.
Another factor is the ethnic mix. The vast majority of the new arrivals are from the Middle East - and are Muslims. The Muslims we have in this country have not eased seamlessly into society and there is a perception that they seek to impose their religion on us and want unacceptable change in our social habits.
Some call our attitude racist - and others see it as a legitimate defence of our way of life. Whatever the verdict - there is no doubt that public opinion will harden against the Federal government if it fails to stop this invasion !
Threatening people smugglers with gaol may be good public relations, but it will not deter those making huge profits from the trade. If the government wants to keep on the front foot with the public it needs to act - and it needs no enquiry to understand precisely what brought that inflow to a halt last time.
Rudd needs to balance socialist principles with the facts of life - and make the first of the hard decisions that go with the job of prime minister !
Rudd has had a dream run in the eighteen months he has held office, despite the economic downturn. The impression is that he is a " can do " prime minister and so far he has barely put a foot wrong on many fronts.
The explosion on a refugee boat has caused panic in government ranks. A veil of silence has descended and it seems that there are desperate efforts to maintain that silence until a coronial enquiry is completed - and that will be many months away.
John Howard was criticised - but had the support of the majority of Australians - when he came down hard on people smugglers dumping paid passengers on Australian territory. The " Tampa " affair and " children overboard " hit the headlines, but when illegals were subjected to the " Pacific Solution " and processed offshore the public applauded - and stopped the arrivals in their tracks.
When Labor won office it had a different outlook. New arrivals are not automatically processed offshore and at least women and children are not locked up - but allowed to live in the community.
It was a clear signal to the people smugglers. Australia was again a soft touch. It took months to reestablish the supply lines and set up the regime, but before Christmas the first boats started to appear - and now the flow is set to sharply increase.
This could be the turning point for Rudd's popularity. The majority of Australians are opposed to illegals jumping the queue - and demanding to be allowed to settle on our shores. Most may be fleeing war and privation, but they are also people who are paying people smugglers thousands of dollars for their journey - and depriving legitimate migrants patiently waiting in refugee camps for their turn to be considered.
Another factor is the ethnic mix. The vast majority of the new arrivals are from the Middle East - and are Muslims. The Muslims we have in this country have not eased seamlessly into society and there is a perception that they seek to impose their religion on us and want unacceptable change in our social habits.
Some call our attitude racist - and others see it as a legitimate defence of our way of life. Whatever the verdict - there is no doubt that public opinion will harden against the Federal government if it fails to stop this invasion !
Threatening people smugglers with gaol may be good public relations, but it will not deter those making huge profits from the trade. If the government wants to keep on the front foot with the public it needs to act - and it needs no enquiry to understand precisely what brought that inflow to a halt last time.
Rudd needs to balance socialist principles with the facts of life - and make the first of the hard decisions that go with the job of prime minister !
Saturday, 18 April 2009
Steel - and carbon !
Two decisions seem to be running in tandem in Australia at present. How to save the steel industry - and whether to press ahead with a " cap and trade " carbon reduction scheme.
One school of thought demands that Australian steel be used in major infrastructure projects - and yet to exclude others would clearly be embracing " protectionism " - something we are told brought on the " Great Depression " of the 1930's.
The problem is defining " fair competition ". Australian steel can compete on a level playing field, but in the present economic climate there is every chance that other countries will try dumping surplus production on world markets at cost - and sometimes even below cost.
But - in all fairness - wouldn't our steel industry go after a world order on similar terms if the opportunity offered ?
Our proposed " cap and trade " carbon reduction scheme has degenerated into little more than a " dog's breakfast " !
The guy who the government chose to conduct an enquiry - Professor Ross Garnaut - is now having second thoughts and thinks we might be wise to defer it to a later time.
Garnaut suggested a higher target. The government cut that in half - and yet the Greenies are screaming for an impossible level that would be economic suicide if implemented. There is absolutely no consensus on a carbon reduction level - and that seems a clear recipe for a bad decision !
There is an old adage that says - " When in doubt - don't ! "
The best plan would be to defer any carbon decision for twelve months - when the world economic picture will be clearer !
And without embracing protectionism - make sure the present anti dumping legislation on our books is rigorously applied and enforced.
With a bit of luck and a following breeze - we might survive and reach better times !
One school of thought demands that Australian steel be used in major infrastructure projects - and yet to exclude others would clearly be embracing " protectionism " - something we are told brought on the " Great Depression " of the 1930's.
The problem is defining " fair competition ". Australian steel can compete on a level playing field, but in the present economic climate there is every chance that other countries will try dumping surplus production on world markets at cost - and sometimes even below cost.
But - in all fairness - wouldn't our steel industry go after a world order on similar terms if the opportunity offered ?
Our proposed " cap and trade " carbon reduction scheme has degenerated into little more than a " dog's breakfast " !
The guy who the government chose to conduct an enquiry - Professor Ross Garnaut - is now having second thoughts and thinks we might be wise to defer it to a later time.
Garnaut suggested a higher target. The government cut that in half - and yet the Greenies are screaming for an impossible level that would be economic suicide if implemented. There is absolutely no consensus on a carbon reduction level - and that seems a clear recipe for a bad decision !
There is an old adage that says - " When in doubt - don't ! "
The best plan would be to defer any carbon decision for twelve months - when the world economic picture will be clearer !
And without embracing protectionism - make sure the present anti dumping legislation on our books is rigorously applied and enforced.
With a bit of luck and a following breeze - we might survive and reach better times !
Friday, 17 April 2009
Pirates !
Events off the coast of Africa are reaching a more serious stage. Pirates from Somalia have been successful in seizing ships and extracting huge ransoms for their release, but now the first deaths have occurred.
The Americans killed pirates threatening to kill one of their nationals, and the French rescued a yacht crew with the death of an innocent yachtsman - and the pirates who had seized the yacht.
It is a crucial turning point. For months a stalemate has ensured. The pirates have been scrupulously careful not to kill or injure captive crews - and the ransoms have been forthcoming precisely as demanded.
Now there is almost certainty that the pirates will move the game up a notch. Already an attempt was made to destroy - not capture - an American ship. Clearly a message from the pirates that they will not tolerate rescue attempts that kill their people !
These pirates are also rapidly increasing in sophistication. They are now using " mother ships " as a base to extend their ability to operate further from land, and the loot raised from ransoms is being used to buy faster attack boats and more sophisticated weapons.
There is no government in Somalia. The state descended into chaos and in effect the pirate gangs are a de facto government. If so, this is a government at war with the rest of the world !
If the government of a country permitted attacks on maritime trade by an unofficial navy there would be a reaction from the rest of the world. There would be a declaration of war and that country would come under attack.
That is precisely what is now needed against these pirates. There is no reason why the rest of the world should not conduct unrestricted war against Somalia - including destroying any vessels of any type moving from it's waters and laying waste to port and supply facilities serving these vessels.
Piracy was once the scourge of the seas. It almost disappeared in recent times and it must not be allowed to resurrect and destroy world trade. If Somalia is allowed to run a pirate kingdom unchecked - how long before other countries under financial stress follow suit ?
The decision is one of who rules the waves - the navies of the world - or pirates !
The Americans killed pirates threatening to kill one of their nationals, and the French rescued a yacht crew with the death of an innocent yachtsman - and the pirates who had seized the yacht.
It is a crucial turning point. For months a stalemate has ensured. The pirates have been scrupulously careful not to kill or injure captive crews - and the ransoms have been forthcoming precisely as demanded.
Now there is almost certainty that the pirates will move the game up a notch. Already an attempt was made to destroy - not capture - an American ship. Clearly a message from the pirates that they will not tolerate rescue attempts that kill their people !
These pirates are also rapidly increasing in sophistication. They are now using " mother ships " as a base to extend their ability to operate further from land, and the loot raised from ransoms is being used to buy faster attack boats and more sophisticated weapons.
There is no government in Somalia. The state descended into chaos and in effect the pirate gangs are a de facto government. If so, this is a government at war with the rest of the world !
If the government of a country permitted attacks on maritime trade by an unofficial navy there would be a reaction from the rest of the world. There would be a declaration of war and that country would come under attack.
That is precisely what is now needed against these pirates. There is no reason why the rest of the world should not conduct unrestricted war against Somalia - including destroying any vessels of any type moving from it's waters and laying waste to port and supply facilities serving these vessels.
Piracy was once the scourge of the seas. It almost disappeared in recent times and it must not be allowed to resurrect and destroy world trade. If Somalia is allowed to run a pirate kingdom unchecked - how long before other countries under financial stress follow suit ?
The decision is one of who rules the waves - the navies of the world - or pirates !
Thursday, 16 April 2009
The meaning of words !
The states are trying to put together common legislation to smash criminal motorcycle gangs. It is proposed that being a member of such a gang be an offence punishable by imprisonment, and that gang members be prohibited from serving as an executive of any legal business to prevent them using that front for money laundering.
This sounds similar to the American RICO laws, but those with concern that our civil liberties may become casualties of too much vigor are right to be alarmed.
It all depends on how those laws are worded - and who interprets those words !
Fortunately, all our laws are subject to judicial interpretation. Whatever laws are passed by parliament are sure to be challenged in the courts - and that challenge may go all the way to the High court if a significant issue is involved.
The problem is the use such laws can be put to !
What constitutes a " gang " ? Is it two or more people ? The union movement might ponder how it could be interpreted. What is the definition between a " gang ", a " club " and a " union " ?
Does it mean any person convicted - or just accused - of a crime could become ineligible to serve as an executive in a family company ?
With ill will, could draconian laws intended to thwart an evil in our midst be used by a later government to persecute political enemies ?
We certainly have a crime problem with criminal motorcycle gangs, but in trying to bring the law into focus could we create a new monster that would reduce civil law protection ?
By all means strengthen the law - but do so with caution and with the full scrutiny of how these amendments will be used by the law enforcement agencies.
It is a case of the old adage - " Be careful what you wish for ! "
This sounds similar to the American RICO laws, but those with concern that our civil liberties may become casualties of too much vigor are right to be alarmed.
It all depends on how those laws are worded - and who interprets those words !
Fortunately, all our laws are subject to judicial interpretation. Whatever laws are passed by parliament are sure to be challenged in the courts - and that challenge may go all the way to the High court if a significant issue is involved.
The problem is the use such laws can be put to !
What constitutes a " gang " ? Is it two or more people ? The union movement might ponder how it could be interpreted. What is the definition between a " gang ", a " club " and a " union " ?
Does it mean any person convicted - or just accused - of a crime could become ineligible to serve as an executive in a family company ?
With ill will, could draconian laws intended to thwart an evil in our midst be used by a later government to persecute political enemies ?
We certainly have a crime problem with criminal motorcycle gangs, but in trying to bring the law into focus could we create a new monster that would reduce civil law protection ?
By all means strengthen the law - but do so with caution and with the full scrutiny of how these amendments will be used by the law enforcement agencies.
It is a case of the old adage - " Be careful what you wish for ! "
Wednesday, 15 April 2009
Nanotechnology.
Over a century ago asbestos was hailed as the wonder material. It was a very effective heat insulant and the ideal material for car brake linings.
Unfortunately it also killed people !
Now we are entering a new age with nanotechnology.
This is a science where incredibly small particles - as small as one tenth of a human hair - can be manipulated to perform functions that were not previously possible. They are finding commercial use in sun screens and many cosmetics.
Questions are now being asked about their safety. It is possible that such tiny fibres floating free could be as damaging as asbestos fibres, and we certainly don't want another episode of an unrecognised killer decimating thousands of people because of public apathy.
Some people have another concern about nanotechnology. It is thought that particles can be taught to behave in certain patterns by a " herd effect " syndrome. This is as basic as turning left or right - acting as a switch - in electronic applications.
Some see this as the first basic of teaching non living matter to think !
The problem with such a concept in many minds is the inability to limit the range of thinking in non-human matter - and just where that could lead us.
There is a chance that nanotechnology may open up whole new worlds of science, but we should approach with caution - and certainly the first requirement should be to ascertain what health risks are present.
A repeat of the asbestos disaster would be a preventable tragedy !
Unfortunately it also killed people !
Now we are entering a new age with nanotechnology.
This is a science where incredibly small particles - as small as one tenth of a human hair - can be manipulated to perform functions that were not previously possible. They are finding commercial use in sun screens and many cosmetics.
Questions are now being asked about their safety. It is possible that such tiny fibres floating free could be as damaging as asbestos fibres, and we certainly don't want another episode of an unrecognised killer decimating thousands of people because of public apathy.
Some people have another concern about nanotechnology. It is thought that particles can be taught to behave in certain patterns by a " herd effect " syndrome. This is as basic as turning left or right - acting as a switch - in electronic applications.
Some see this as the first basic of teaching non living matter to think !
The problem with such a concept in many minds is the inability to limit the range of thinking in non-human matter - and just where that could lead us.
There is a chance that nanotechnology may open up whole new worlds of science, but we should approach with caution - and certainly the first requirement should be to ascertain what health risks are present.
A repeat of the asbestos disaster would be a preventable tragedy !
Tuesday, 14 April 2009
The " Alcohol " question !
The Federal government is under pressure to adopt either or both of two approaches on the consumption of alcohol by young people.
One school of though suggests hiking the price to restrict access and the other wants the legal drinking age raised from eighteen to twenty-one.
There is no doubt that we have an alcohol problem and that binge drinking by young people is both a source of danger and a health hazard. The big unanswered question is why the proponents think either of these options would bring about change ?
Twenty-one used to be the legal drinking age - until the Vietnam war raised an interesting question.
Why was it legal to conscript a young man on his eighteenth birthday, hand him a gun and a uniform - and sent him away to war, and at the same time insist that he was not mature enough to either have a drink or vote for an elected representative in government ?
The answer to that was to reduce the majority age to eighteen.
The price hike suggestion is nothing more than a opportunistic tax grab. It would be a collective punishment for the overwhelming majority of adult drinkers who do not abuse alcohol under the thinly disguised cover of righting a social wrong.
The suggestion of increasing the legal age to drink alcohol to twenty-one would simply introduce a new offence for our badly over worked police force. If they can not stop young people smoking marijuana, what makes the authorities think they would have any more success banning alcohol ?
There is a strange lure to many people when anything is banned. Price is not a deterrent because if something is out of reach then illegal means - and that often means stealing - becomes the answer to it's provision.
Both of the suggested options would bring smiles to the faces of the church people and those who profess to be so called " experts ", but in reality we already have existing laws that are being widely ignored.
Drinking alcohol to excess seems to be a right of passage to adulthood for young people. It has always been so in the past - and there is little chance that it will change in the future - whatever unenforceable laws pass through the parliament.
There will be casualties and alcohol will ruin some lives, but that is simply the world we live in - and most people out live their wild years and go on to become respectable citizens.
Attempts to change nature are invariably a failure !
One school of though suggests hiking the price to restrict access and the other wants the legal drinking age raised from eighteen to twenty-one.
There is no doubt that we have an alcohol problem and that binge drinking by young people is both a source of danger and a health hazard. The big unanswered question is why the proponents think either of these options would bring about change ?
Twenty-one used to be the legal drinking age - until the Vietnam war raised an interesting question.
Why was it legal to conscript a young man on his eighteenth birthday, hand him a gun and a uniform - and sent him away to war, and at the same time insist that he was not mature enough to either have a drink or vote for an elected representative in government ?
The answer to that was to reduce the majority age to eighteen.
The price hike suggestion is nothing more than a opportunistic tax grab. It would be a collective punishment for the overwhelming majority of adult drinkers who do not abuse alcohol under the thinly disguised cover of righting a social wrong.
The suggestion of increasing the legal age to drink alcohol to twenty-one would simply introduce a new offence for our badly over worked police force. If they can not stop young people smoking marijuana, what makes the authorities think they would have any more success banning alcohol ?
There is a strange lure to many people when anything is banned. Price is not a deterrent because if something is out of reach then illegal means - and that often means stealing - becomes the answer to it's provision.
Both of the suggested options would bring smiles to the faces of the church people and those who profess to be so called " experts ", but in reality we already have existing laws that are being widely ignored.
Drinking alcohol to excess seems to be a right of passage to adulthood for young people. It has always been so in the past - and there is little chance that it will change in the future - whatever unenforceable laws pass through the parliament.
There will be casualties and alcohol will ruin some lives, but that is simply the world we live in - and most people out live their wild years and go on to become respectable citizens.
Attempts to change nature are invariably a failure !
Monday, 13 April 2009
The peril of purchasing !
The sudden and unexpected demise of Kleenmaid came as a shock to most people. This popular and well respected manufacturer of electrical goods was an icon and the brand name stood as a symbol of all that customers look for.
The failure serves notice that the safety of buying a known brand is no longer the guarantee that it once was.
There is no longer an enterprise that is simply too big to cease trading and call in the receivers - and if that happens any money already paid as a deposit on goods - and any warranties on goods already purchased will cease to have legal application.
That applies right across the whole spectrum of manufacturing, and that includes motor vehicles, the second biggest ticket item on the public's shopping list. These days a five year warranty is usual on cars and light trucks, but the problems being faced by General Motors gives an implication of what shaky ground underpins trading giants.
The day has come in which potential purchasers would do well to think long and hard before signing on the dotted line. Long warranties should be taken with a grain of salt, and under no circumstances should deposits be paid until the selected item is in the store and ready to be delivered.
We are in a recession and more company failures are to be expected.
The wise will protect themselves as much as possible by weighing in the risk factor - and proceeding with big ticket purchases only after eliminating the logical loss that could arise should undelivered goods be pre paid.
The old maxim of " cash on delivery " could be a wise purchase plan !
The failure serves notice that the safety of buying a known brand is no longer the guarantee that it once was.
There is no longer an enterprise that is simply too big to cease trading and call in the receivers - and if that happens any money already paid as a deposit on goods - and any warranties on goods already purchased will cease to have legal application.
That applies right across the whole spectrum of manufacturing, and that includes motor vehicles, the second biggest ticket item on the public's shopping list. These days a five year warranty is usual on cars and light trucks, but the problems being faced by General Motors gives an implication of what shaky ground underpins trading giants.
The day has come in which potential purchasers would do well to think long and hard before signing on the dotted line. Long warranties should be taken with a grain of salt, and under no circumstances should deposits be paid until the selected item is in the store and ready to be delivered.
We are in a recession and more company failures are to be expected.
The wise will protect themselves as much as possible by weighing in the risk factor - and proceeding with big ticket purchases only after eliminating the logical loss that could arise should undelivered goods be pre paid.
The old maxim of " cash on delivery " could be a wise purchase plan !
Sunday, 12 April 2009
The money trail !
The financial machinations of government are hard to understand by us poor buggers who are not accountants or denizens of the stockbroker set.
The state government is going to sell off our lotteries ! We always understood that the lotteries were a pot of gold delivering a steady money stream which financed things like our hospitals, the fire brigade and a whole heap of other government services.
We know that the state government is desperate for money, but surely if we sell the lotteries we only get a one off payment - and then that river of gold ceases ?
The only reason private buyers will pay money for the lottery franchise is if they can make huge profits from that gamble. Surely that means that we have reduced a steady profit and exchanged it for the short term solution to an immediate money problem ?
Selling off electricity can be understood. We need more generating capacity and that is an expense the government can not afford. A private buyer can hike electricity prices beyond what we would accept if done by the government and can therefore afford to expand the system - but there is no such gain by selling the lotteries.
After the lotteries - what comes next ?
It's a bit like pawning the family silver. One day the cupboard will be empty.
But then - this government will be out of office - and it will be someone else's problem !
Strange are the mental workings of those we elect to represent us !
The state government is going to sell off our lotteries ! We always understood that the lotteries were a pot of gold delivering a steady money stream which financed things like our hospitals, the fire brigade and a whole heap of other government services.
We know that the state government is desperate for money, but surely if we sell the lotteries we only get a one off payment - and then that river of gold ceases ?
The only reason private buyers will pay money for the lottery franchise is if they can make huge profits from that gamble. Surely that means that we have reduced a steady profit and exchanged it for the short term solution to an immediate money problem ?
Selling off electricity can be understood. We need more generating capacity and that is an expense the government can not afford. A private buyer can hike electricity prices beyond what we would accept if done by the government and can therefore afford to expand the system - but there is no such gain by selling the lotteries.
After the lotteries - what comes next ?
It's a bit like pawning the family silver. One day the cupboard will be empty.
But then - this government will be out of office - and it will be someone else's problem !
Strange are the mental workings of those we elect to represent us !
Saturday, 11 April 2009
Paradise lost !
Fiji was a popular holiday destination for Australians - but today visitors go there at their peril !
Following a military coup led by Commodore Voreqe Bainimarama many months ago, the Fiji court of Appeal ruled that his administration was illegal. Immediately the President of Fiji, Ratu Josefa Iloilo dissolved the nation's constitution, appointed himself head of state - and sacked all judges and introduced " a new legal order ".
It is proposed that Fiji will face an election in 2014 to return to democracy, but Bainimarama has made similar promises before - and reneged on all of them.
Basically, Fiji is now a military dictatorship and joins such similar countries as Burma and North Korea. The rule of law has vanished - and been replaced by the law of the gun in the hands of a dictator.
The reason for unrest is not hard to find. When the British arrived over two centuries ago they imposed a colonial regime. They saw a commercial opportunity to establish sugar as a crop - and imported workers from colonial India.
Today - the mix of people of Indian origin and original Fijians is about equal and the Fijian people bitterly resent Indians being elected to parliament. There is a strong movement to reserve Fiji for the Fijian people.
What happens next is a witch's cauldron of possibilities !
Fiji will be strongly censured and possibly expelled from the Commonwealth of Nations - and punished by the United Nations for breaking with democracy.
Depending on how desperate the junta ruling it becomes, it could evolve into a tax haven, just as other tax havens are starting to disappear, or it could develop into a narco state !
It could become susceptible to overtures from terrorist groups such as al Qaeda to allow training camps and facilities on it's territory in exchange for protection - and money !
It is likely that the treatment of it's Indian population will become harsh and more extreme with the perception that they will become second class citizens. How this would be viewed by India - their country of origin is an enigma.
India is a fast growing world power with a formidable navy. Intervention by way of invasion would not be out of the question, and if that happened the spectre of annexation could be an issue.
The future for Fiji appears traumatic and once again it is a case of the man who commands the military controlling the people by the rule of the gun. The only thing that is certain is that as a paradise for those seeking a holiday in the sun Fiji is now a place of uncertain safety.
Sadly, tourism was it's main economic base. Bainimarama shot himself in the foot with his coup - and it looks like he is taking the country on a trip down misery road as a result !
Following a military coup led by Commodore Voreqe Bainimarama many months ago, the Fiji court of Appeal ruled that his administration was illegal. Immediately the President of Fiji, Ratu Josefa Iloilo dissolved the nation's constitution, appointed himself head of state - and sacked all judges and introduced " a new legal order ".
It is proposed that Fiji will face an election in 2014 to return to democracy, but Bainimarama has made similar promises before - and reneged on all of them.
Basically, Fiji is now a military dictatorship and joins such similar countries as Burma and North Korea. The rule of law has vanished - and been replaced by the law of the gun in the hands of a dictator.
The reason for unrest is not hard to find. When the British arrived over two centuries ago they imposed a colonial regime. They saw a commercial opportunity to establish sugar as a crop - and imported workers from colonial India.
Today - the mix of people of Indian origin and original Fijians is about equal and the Fijian people bitterly resent Indians being elected to parliament. There is a strong movement to reserve Fiji for the Fijian people.
What happens next is a witch's cauldron of possibilities !
Fiji will be strongly censured and possibly expelled from the Commonwealth of Nations - and punished by the United Nations for breaking with democracy.
Depending on how desperate the junta ruling it becomes, it could evolve into a tax haven, just as other tax havens are starting to disappear, or it could develop into a narco state !
It could become susceptible to overtures from terrorist groups such as al Qaeda to allow training camps and facilities on it's territory in exchange for protection - and money !
It is likely that the treatment of it's Indian population will become harsh and more extreme with the perception that they will become second class citizens. How this would be viewed by India - their country of origin is an enigma.
India is a fast growing world power with a formidable navy. Intervention by way of invasion would not be out of the question, and if that happened the spectre of annexation could be an issue.
The future for Fiji appears traumatic and once again it is a case of the man who commands the military controlling the people by the rule of the gun. The only thing that is certain is that as a paradise for those seeking a holiday in the sun Fiji is now a place of uncertain safety.
Sadly, tourism was it's main economic base. Bainimarama shot himself in the foot with his coup - and it looks like he is taking the country on a trip down misery road as a result !
Friday, 10 April 2009
Unhappy Easter !
In the next four days quite a lot of people are going to have a thoroughly unhappy Easter !
Some are going to be pulled over by the police and some are going to be snapped by speed cameras for exceeding the speed limit by a tiny degree - and all of them will face the loss of half the points necessary to retain a driver's license !
Those who already have demerit points will probably have their license cancelled, and with it will go their means of getting to work - and in some cases - the loss of their job because it requires a driving license to be viable.
The state government agrees that it has been too heavy handed in fining drivers three demerit points in normal times for slightly exceeding the speed limit - and doubling that impost during holiday periods - and it has set in motion the means of reducing the points loss from three to one.
That decision was made a month ago - but it will not come into force for another five months because it takes six months for the bureaucracy to creak into action and do the necessary paperwork.
This is a perfect example of the sloth that passes for government. All that it would take is for the government to make an announcement that tells the police and the magistrates that a single loss of a point will now apply for minor speeding offences.
As a result, all such cases would be put on hold and not proceed through the courts until such time as the paper pushers get their act together - and put the necessary legislation in place.
We also have a grave injustice present in the system that needs correction. Should a motorist fight a speeding charge and win - the fine then does not apply and no conviction is recorded - but the loss of those demerit points still stands !
It would be similar to a person being cleared of a murder charge by a court - but having the prison system go ahead with a hanging anyway !
This Easter the justice system is going to hand out penalties that the government agrees are unjust and grossly unfair. As a result, some people are going to fall foul of license loss - and further down the track some will get a double whammy by being caught driving while unlicensed - because they have no other option if they want to earn a living.
And all this simply because the people who run this state are incapable of making things happen without half a years notice !
Some could say that it's " a helluva way to run a railroad " - but then have a second though and shudder - because they also do run a railroad !
Some are going to be pulled over by the police and some are going to be snapped by speed cameras for exceeding the speed limit by a tiny degree - and all of them will face the loss of half the points necessary to retain a driver's license !
Those who already have demerit points will probably have their license cancelled, and with it will go their means of getting to work - and in some cases - the loss of their job because it requires a driving license to be viable.
The state government agrees that it has been too heavy handed in fining drivers three demerit points in normal times for slightly exceeding the speed limit - and doubling that impost during holiday periods - and it has set in motion the means of reducing the points loss from three to one.
That decision was made a month ago - but it will not come into force for another five months because it takes six months for the bureaucracy to creak into action and do the necessary paperwork.
This is a perfect example of the sloth that passes for government. All that it would take is for the government to make an announcement that tells the police and the magistrates that a single loss of a point will now apply for minor speeding offences.
As a result, all such cases would be put on hold and not proceed through the courts until such time as the paper pushers get their act together - and put the necessary legislation in place.
We also have a grave injustice present in the system that needs correction. Should a motorist fight a speeding charge and win - the fine then does not apply and no conviction is recorded - but the loss of those demerit points still stands !
It would be similar to a person being cleared of a murder charge by a court - but having the prison system go ahead with a hanging anyway !
This Easter the justice system is going to hand out penalties that the government agrees are unjust and grossly unfair. As a result, some people are going to fall foul of license loss - and further down the track some will get a double whammy by being caught driving while unlicensed - because they have no other option if they want to earn a living.
And all this simply because the people who run this state are incapable of making things happen without half a years notice !
Some could say that it's " a helluva way to run a railroad " - but then have a second though and shudder - because they also do run a railroad !
Thursday, 9 April 2009
The " Broadband " decision !
The provision of a high speed Broadband service across Australia will not go to tender. Instead - the Federal government will lead a consortium of private investors and hold a 51% stake in this $ 43 billion undertaking.
For over a decade Broadband plans have not progressed because of Telstra. The original idea was to implement fibre optic cable to the node - meaning that this form would terminate at telephone exchanges and be carried from there to homes and businesses by the existing copper cable network - owned by Telstra.
Telstra played hardball. It refused access to this copper cable system - unless the government agreed to it's own terms, which would have placed a Telstra strangehold on access and pricing - and excluded meaningful competition.
The government bit the bullet and has now decided to take fibre optic cable all the way to homes and businesses - bypassing Telstra's copper cable and making it obsolete. As a result, the way will be clear for telephone companies to provide a direct and better phone service in this country via Broadband.
The loser is Telstra. It's prime asset just turned into a liability and it looks like being trampled into the ground by a stampede of competitors. Clearly - a plan of brinksmanship to emerge in control of Broadband has backfired - and the company lost the pot of gold in the middle of the jackpot table !
But - this is politics !
A lot of things can happen in the months ahead. Telstra will soon have a new CEO and it's shareholders must be angry at the disaster that has overtaken their investment. There is a very good chance that it will grovel and come whining back to the government - pleading to agree to any term the government chooses to offer and at any price that will allow it's copper cable to be used.
The government may change tack and thus reduce costs by returning to a " to the node " strategy.
At least the stranglehold is broken - and it is vital that Australia get high speed Broadband so that we can not only compete - but move far ahead of the rest of the world.
It is not without commercial danger. At the moment optic cable is a clear winner, but we should remember that several decades ago that copper cable was the only way to run a phone service - and now it is obsolete.
Mobile phones and wireless access are making giant strides - and thinking people need to keep their eye on the ball and project their thoughts into the future.
An interesting scenario to ponder ! What innovation is taking shape in a mind somewhere that will provide the successor to the Internet ?
For over a decade Broadband plans have not progressed because of Telstra. The original idea was to implement fibre optic cable to the node - meaning that this form would terminate at telephone exchanges and be carried from there to homes and businesses by the existing copper cable network - owned by Telstra.
Telstra played hardball. It refused access to this copper cable system - unless the government agreed to it's own terms, which would have placed a Telstra strangehold on access and pricing - and excluded meaningful competition.
The government bit the bullet and has now decided to take fibre optic cable all the way to homes and businesses - bypassing Telstra's copper cable and making it obsolete. As a result, the way will be clear for telephone companies to provide a direct and better phone service in this country via Broadband.
The loser is Telstra. It's prime asset just turned into a liability and it looks like being trampled into the ground by a stampede of competitors. Clearly - a plan of brinksmanship to emerge in control of Broadband has backfired - and the company lost the pot of gold in the middle of the jackpot table !
But - this is politics !
A lot of things can happen in the months ahead. Telstra will soon have a new CEO and it's shareholders must be angry at the disaster that has overtaken their investment. There is a very good chance that it will grovel and come whining back to the government - pleading to agree to any term the government chooses to offer and at any price that will allow it's copper cable to be used.
The government may change tack and thus reduce costs by returning to a " to the node " strategy.
At least the stranglehold is broken - and it is vital that Australia get high speed Broadband so that we can not only compete - but move far ahead of the rest of the world.
It is not without commercial danger. At the moment optic cable is a clear winner, but we should remember that several decades ago that copper cable was the only way to run a phone service - and now it is obsolete.
Mobile phones and wireless access are making giant strides - and thinking people need to keep their eye on the ball and project their thoughts into the future.
An interesting scenario to ponder ! What innovation is taking shape in a mind somewhere that will provide the successor to the Internet ?
Wednesday, 8 April 2009
No win situation.
The Reserve bank has lowered official interest rates to three percent. Those hoping for a drop in mortgage rates will be disappointed. One bank has refused any change - another has agreed to a partial drop - and the other two are " considering their position ".
There is another side to interest rates. The return our investments bring and this is critically important to self funded retirees.
There is a huge pool of people who do not draw an aged pension - and an even bigger pool who draw a part pension because they made provision for their retirement. The drop in interest rates will further erode the dividends they live on - and that will have dire consequences for welfare payments.
Getting a pension depends on two things - the value of the assets you have - excluding the family home - and the amount of income you receive from those assets. A sliding scale of values either bars you from any pension - or entitles you to a part pension.
Once income drops because of lower interest rates the self funded find themselves dipping into capital. As capital dwindles more and more become eligible for a part pension - and those on a part pension move closer to a full pension.
And so the boomerang comes full circle !
To fund those additional pensions the public purse needs more money - and the only source of money is an increase in taxation across the whole tax spectrum.
At the same time, government policy would have no option than to slow warranted pension increases - and subject pensioners to a lower standard of living.
We certainly need to provide relief for mortgage holders, but we should also be fully aware that there is a flow on effect from cuts in interest rates - and eventually that will affect every man, woman and child in this country.
There is another side to interest rates. The return our investments bring and this is critically important to self funded retirees.
There is a huge pool of people who do not draw an aged pension - and an even bigger pool who draw a part pension because they made provision for their retirement. The drop in interest rates will further erode the dividends they live on - and that will have dire consequences for welfare payments.
Getting a pension depends on two things - the value of the assets you have - excluding the family home - and the amount of income you receive from those assets. A sliding scale of values either bars you from any pension - or entitles you to a part pension.
Once income drops because of lower interest rates the self funded find themselves dipping into capital. As capital dwindles more and more become eligible for a part pension - and those on a part pension move closer to a full pension.
And so the boomerang comes full circle !
To fund those additional pensions the public purse needs more money - and the only source of money is an increase in taxation across the whole tax spectrum.
At the same time, government policy would have no option than to slow warranted pension increases - and subject pensioners to a lower standard of living.
We certainly need to provide relief for mortgage holders, but we should also be fully aware that there is a flow on effect from cuts in interest rates - and eventually that will affect every man, woman and child in this country.
Interest rates can be a mixed blessing !
Tuesday, 7 April 2009
The " forgotten " tax.
Remember all the uproar when the Goods and Services tax ( GST ) was introduced nearly a decade ago ?
Now it is something that is taken for granted. Few people take note of the GST component listed at the bottom of each sales docket - except for accountants and those whose business it is to compile tax returns.
Now the dust has settled and the political point scoring ended this is seen as an absolutely " fair " tax - because everybody pays it !
It's not a tax that the clever or the wealthy can dodge, and it doesn't matter if you are an Australian citizen or a tourist. If you have a hair cut, buy a meal, go and watch the football - or buy a movie ticket - you pay ten percent to the tax man - and that is ten percent that would otherwise be collected by a more discriminatory tax if there was no GST.
Lets face it. Money has to come from somewhere to run this state - and the GST is essentially a state tax !
The other surprise is that the promise of not raising that tax from ten percent has been kept - and that is not the experience of the rest of the world. In some countries the VAT or whatever name the tax has been given has increased on a regular basis - in some instances to as much as twenty-five percent of every purchase.
Nobody rants about the GST these days - and neither should they. Compared to every other form of taxation - this one is fair and honest - and with the passage of time we have almost forgotten that we are being taxed !
Now it is something that is taken for granted. Few people take note of the GST component listed at the bottom of each sales docket - except for accountants and those whose business it is to compile tax returns.
Now the dust has settled and the political point scoring ended this is seen as an absolutely " fair " tax - because everybody pays it !
It's not a tax that the clever or the wealthy can dodge, and it doesn't matter if you are an Australian citizen or a tourist. If you have a hair cut, buy a meal, go and watch the football - or buy a movie ticket - you pay ten percent to the tax man - and that is ten percent that would otherwise be collected by a more discriminatory tax if there was no GST.
Lets face it. Money has to come from somewhere to run this state - and the GST is essentially a state tax !
The other surprise is that the promise of not raising that tax from ten percent has been kept - and that is not the experience of the rest of the world. In some countries the VAT or whatever name the tax has been given has increased on a regular basis - in some instances to as much as twenty-five percent of every purchase.
Nobody rants about the GST these days - and neither should they. Compared to every other form of taxation - this one is fair and honest - and with the passage of time we have almost forgotten that we are being taxed !
Monday, 6 April 2009
Mortgage relief con !
The big four banks have agreed to provide relief for those with a mortgage who lose their job in this recession.
The scheme is flexible and can range from foregoing any payments for twelve months to paying only interest during this period. Any money owing to the banks as a result simply gets tacked onto the other end of the loan !
The problem is that it is not automatic and not everyone will be offered relief. Each application will be judged on a case by case basis and in reality it is as much a case of protecting the bank's bottom line as helping recession victims.
The ultimate financial disaster for a bank is taking possession of someone's home. In some cases the mortgage value is greater than the hoped for sale price and the bank will be forced to sell at a loss. The unfortunate former owner then has no home and an ongoing debt to the bank.
Banks are neither trained or psychologically adept at selling real estate. A home presented for sale needs to look well maintained. The lawns need to be cut and it helps to have a " lived in " look.
Once the owner departs and the home reverts to the bank decay sets in. The junk mail accumulates, grafitti appears and the lawns become a jungle - and sometimes squatters take over !
The banks will seek to avoid that fate by carefully screening each application. A lot will depend on whether they think the owner will find another job reasonably easily - and their own judgement on how long this recession will last.
The least likely to be offered relief are the owners of homes in positions of sales demand. There is more value to the bank of avoiding foreclosure of a house that would be hard to sell. By avoiding that option there is a chance that the recession may end, house prices may lift - and the bank's bottom line may avoid a hit.
Obviously any form of relief is better than a hard line attitude but it will be interesting to see how this scheme works in a practical sense - and whether the government manages to get the smaller lenders to climb on board !
The scheme is flexible and can range from foregoing any payments for twelve months to paying only interest during this period. Any money owing to the banks as a result simply gets tacked onto the other end of the loan !
The problem is that it is not automatic and not everyone will be offered relief. Each application will be judged on a case by case basis and in reality it is as much a case of protecting the bank's bottom line as helping recession victims.
The ultimate financial disaster for a bank is taking possession of someone's home. In some cases the mortgage value is greater than the hoped for sale price and the bank will be forced to sell at a loss. The unfortunate former owner then has no home and an ongoing debt to the bank.
Banks are neither trained or psychologically adept at selling real estate. A home presented for sale needs to look well maintained. The lawns need to be cut and it helps to have a " lived in " look.
Once the owner departs and the home reverts to the bank decay sets in. The junk mail accumulates, grafitti appears and the lawns become a jungle - and sometimes squatters take over !
The banks will seek to avoid that fate by carefully screening each application. A lot will depend on whether they think the owner will find another job reasonably easily - and their own judgement on how long this recession will last.
The least likely to be offered relief are the owners of homes in positions of sales demand. There is more value to the bank of avoiding foreclosure of a house that would be hard to sell. By avoiding that option there is a chance that the recession may end, house prices may lift - and the bank's bottom line may avoid a hit.
Obviously any form of relief is better than a hard line attitude but it will be interesting to see how this scheme works in a practical sense - and whether the government manages to get the smaller lenders to climb on board !
Sunday, 5 April 2009
Censorship .... and the Internet !
Ominous noises circulating in political circles. A case seems to be building to justify censoring what can be seen on the Internet.
Of course such an idea will be carefully hidden in what seems a just cause. Child pornography is the emotive issue thought to sway even civil liberty people into accepting the unacceptable !
There is no doubt that some sordid examples of children subjected to sexual exploitation can be accessed on the Internet by the tap of a key and the click of a mouse. There is no argument5 that most people would be apalled if their children were viewing such filth.
This is where the subject becomes opaque. There is a huge difference between the right of a parent to install a filter to prevent child access to objectionable material - and the right of the government to block access to sites it considers should be quarantined from ordinary citizens.
The stalking horse seems to be euthenasia.
Every Australian has the right to bring about their own death - and many terminate the pain and misery of a terminal illness in that way. What is illegal is for another person to help bring about that death.
There are suggestions that information on how to achieve euthenasia should be banned from the Internet.
Many years ago a book titled " Exit " was the first do-it-yourself suicide manual on that subject - and it was temporarily a banned import into this country. Appeals quickly overturned that ban and ever since euthenasia has been studiously avoided by politicians. A brief legalisation in the Northern Territory was overturned by the Federal government.
Now that old adversary - the churches - are behind this suggestion. It was thought that a ban on child pornography would disarm opponents and that euthenasia could open the censorship door a crack - but once the wall is breached a tsunami of censorship is possible.
The suggestion seems to be political kite flying - and there is every chance that it will get it's tail feathers shot off ! It is one thing to make emotive appeals through the letters columns in newspapers - and quite another to get a censorship bill through parliament.
When push comes to shove - that is where the politicians will have to stand and be counted - and it is clear that the public sentiment favours an uncensored Internet !
Of course such an idea will be carefully hidden in what seems a just cause. Child pornography is the emotive issue thought to sway even civil liberty people into accepting the unacceptable !
There is no doubt that some sordid examples of children subjected to sexual exploitation can be accessed on the Internet by the tap of a key and the click of a mouse. There is no argument5 that most people would be apalled if their children were viewing such filth.
This is where the subject becomes opaque. There is a huge difference between the right of a parent to install a filter to prevent child access to objectionable material - and the right of the government to block access to sites it considers should be quarantined from ordinary citizens.
The stalking horse seems to be euthenasia.
Every Australian has the right to bring about their own death - and many terminate the pain and misery of a terminal illness in that way. What is illegal is for another person to help bring about that death.
There are suggestions that information on how to achieve euthenasia should be banned from the Internet.
Many years ago a book titled " Exit " was the first do-it-yourself suicide manual on that subject - and it was temporarily a banned import into this country. Appeals quickly overturned that ban and ever since euthenasia has been studiously avoided by politicians. A brief legalisation in the Northern Territory was overturned by the Federal government.
Now that old adversary - the churches - are behind this suggestion. It was thought that a ban on child pornography would disarm opponents and that euthenasia could open the censorship door a crack - but once the wall is breached a tsunami of censorship is possible.
The suggestion seems to be political kite flying - and there is every chance that it will get it's tail feathers shot off ! It is one thing to make emotive appeals through the letters columns in newspapers - and quite another to get a censorship bill through parliament.
When push comes to shove - that is where the politicians will have to stand and be counted - and it is clear that the public sentiment favours an uncensored Internet !
Saturday, 4 April 2009
Promises .... Promises !
The ending of the G 20 meeting in London was hailed as a success with a statement indicating that those attending agreed to a $ 1.4 trillion plan to restart the world economy, crack down on tax havens, regulate the finance industry and curb excessive executive salaries.
The problem with world conferences of this nature is that no nation can be seen to be a standout. The closing statement is for home consumption as well as attracting international plaudits - and the voters need to be placated into believing that their leaders are on the ball and actually part of the solution to a world problem.
That's just fine - so long as the solution does not harm the home economy - or cost them money they are unwilling to commit.
Previous world meetings have voted huge sums to alleviate poverty in the third world. The closing statement has promised big improvements in living standards - a leap in education - safe drinking water - modern health clinics.
Reality has been far different. Only a fraction of the funds promised have been forthcoming and those lofty promises have been seen for what they were - purely a " feel good " public relations exercise !
There is no doubt that some good will come out of that G 20 meeting, but it is also unlikely that the promised outcome will be fully achieved.
The meeting has agreed that the world will not embrace protectionism - and yet already the United States, Britain and some of the Europeans have bailed out their car industries in an attempt to save jobs.
There is scant difference between supporting an enviable industry with public funds, allowing it to sell locally and export a subsidized product, and slapping a tariff on someone else's goods !
The biggest problem will come with the regulation of financial markets. There is no plan for an international standard and whatever regulation is enforced will be a matter for individual countries.
Hopefully the deficiencies will become apparent when the G 20 meets again in six months time. Perhaps that meeting will have the consensus to tighten the rules and make a world trading regimen work.
Provided - of course - that there is still world trade six months from now !
The problem with world conferences of this nature is that no nation can be seen to be a standout. The closing statement is for home consumption as well as attracting international plaudits - and the voters need to be placated into believing that their leaders are on the ball and actually part of the solution to a world problem.
That's just fine - so long as the solution does not harm the home economy - or cost them money they are unwilling to commit.
Previous world meetings have voted huge sums to alleviate poverty in the third world. The closing statement has promised big improvements in living standards - a leap in education - safe drinking water - modern health clinics.
Reality has been far different. Only a fraction of the funds promised have been forthcoming and those lofty promises have been seen for what they were - purely a " feel good " public relations exercise !
There is no doubt that some good will come out of that G 20 meeting, but it is also unlikely that the promised outcome will be fully achieved.
The meeting has agreed that the world will not embrace protectionism - and yet already the United States, Britain and some of the Europeans have bailed out their car industries in an attempt to save jobs.
There is scant difference between supporting an enviable industry with public funds, allowing it to sell locally and export a subsidized product, and slapping a tariff on someone else's goods !
The biggest problem will come with the regulation of financial markets. There is no plan for an international standard and whatever regulation is enforced will be a matter for individual countries.
Hopefully the deficiencies will become apparent when the G 20 meets again in six months time. Perhaps that meeting will have the consensus to tighten the rules and make a world trading regimen work.
Provided - of course - that there is still world trade six months from now !
Friday, 3 April 2009
The health enigma !
Wollongong has gained a very valuable - and very rare - diagnostic medical tool with the arrival of PRP Diagnostic Imaging's new CT Scanner.
This is one of only six such units in Australia - and just a hundred in the entire world - and it cost $ 3.5 million. It is so advanced that it provides 320 slices of the organ being examined in just one third of a second. Older machines are limited to 64 slices - over a much longer period - and can not achieve as high a definition.
PRP is a private firm and obviously they hope to make a profit from providing an advanced medical facility. We are probably about to see a re-run of the MRI saga of several years ago when hospital patients were being transferred to private facilities because our government health system could not afford a public machine.
Then came the nonsense of a machine in place in the hospital, but without a license that would allow it to be used on the general public. Use was confined to those granted a bed in the hospital - and all others had to pay to use the machine in private facilities.
PRP should be applauded for taking the commercial risk of introducing this service to Wollongong. This machine will only have a short unique life before advances in medical science make it obsolete and hence until that happens it will be the premier imaging form serving the entire south coast and it's hinterland.
In a perfect world the country's national health service would be at the forefront of new medical equipment and it's provision, but in the real world there is a gap of almost light years between development and provision of state of the art equipment.
So - once more we find the pinnacle of diagnostic health available for a fee by those willing to take a financial risk to provide a service. Many will grumble and begrudge that it is not free under Medicare.
They should keep in mind that it is only the perceived benefits and saving of human life stemming from such private machines that generates the pressure for the government to provide similar equipment.
Without that - most would be unaware that such equipment exists !
This is one of only six such units in Australia - and just a hundred in the entire world - and it cost $ 3.5 million. It is so advanced that it provides 320 slices of the organ being examined in just one third of a second. Older machines are limited to 64 slices - over a much longer period - and can not achieve as high a definition.
PRP is a private firm and obviously they hope to make a profit from providing an advanced medical facility. We are probably about to see a re-run of the MRI saga of several years ago when hospital patients were being transferred to private facilities because our government health system could not afford a public machine.
Then came the nonsense of a machine in place in the hospital, but without a license that would allow it to be used on the general public. Use was confined to those granted a bed in the hospital - and all others had to pay to use the machine in private facilities.
PRP should be applauded for taking the commercial risk of introducing this service to Wollongong. This machine will only have a short unique life before advances in medical science make it obsolete and hence until that happens it will be the premier imaging form serving the entire south coast and it's hinterland.
In a perfect world the country's national health service would be at the forefront of new medical equipment and it's provision, but in the real world there is a gap of almost light years between development and provision of state of the art equipment.
So - once more we find the pinnacle of diagnostic health available for a fee by those willing to take a financial risk to provide a service. Many will grumble and begrudge that it is not free under Medicare.
They should keep in mind that it is only the perceived benefits and saving of human life stemming from such private machines that generates the pressure for the government to provide similar equipment.
Without that - most would be unaware that such equipment exists !
Thursday, 2 April 2009
A commercial opportunity.
The new " free shuttle " bus now offering relief from Wollongong's parking problems is the ideal way for residents to adopt a " park and ride " strategy - provided they can find somewhere to safely park the car.
At this stage, that is the " missing link " !
On that stretch of the Princes Highway between Fairy Meadow and North Wollongong an ideal parking site is going begging. The old Indoor Cricket centre was being demolished for another use when the job was cancelled, and behind it Campbells wholesale closed down several years ago. Both provide a parking area for many cars.
Wollongong council should negotiate with the owners because there is mutual gain from encouraging shoppers to make this a " park and ride " destination.
Not only would it attract patrons to the shuttle bus, but any place where people congregate is a Mecca for those offering business services. Everything from a cup of coffee to a drop off point for dry cleaning could rejuvenate what is now an ugly wasteland !
The shuttle bus is a great idea. The only shortcoming is the lack of a safe - designated place to leave the car. Parking on a busy road is not an option that would appeal to most people.
Opportunity knocks ! Is council listening ?
At this stage, that is the " missing link " !
On that stretch of the Princes Highway between Fairy Meadow and North Wollongong an ideal parking site is going begging. The old Indoor Cricket centre was being demolished for another use when the job was cancelled, and behind it Campbells wholesale closed down several years ago. Both provide a parking area for many cars.
Wollongong council should negotiate with the owners because there is mutual gain from encouraging shoppers to make this a " park and ride " destination.
Not only would it attract patrons to the shuttle bus, but any place where people congregate is a Mecca for those offering business services. Everything from a cup of coffee to a drop off point for dry cleaning could rejuvenate what is now an ugly wasteland !
The shuttle bus is a great idea. The only shortcoming is the lack of a safe - designated place to leave the car. Parking on a busy road is not an option that would appeal to most people.
Opportunity knocks ! Is council listening ?
Wednesday, 1 April 2009
Digital TV - Disappointment !
A lot of people advanced their buying decision on digital Television because of the advent of fifteen new, free to air channels - five of which were about to come on stream from this month.
The first started this week - but it can not be received in Wollongong.
What a disappointment to viewers living outside of Sydney to find that this new service will be limited to those in the metropolitan area - and what a slap in the face for sporting fans who have paid big money in anticipation of a sporting bonanza !
No doubt the TV people have intentions of sending the new channels country wide - when they get around to it. One of the limitations is the current economic meltdown. It is quite possible that the big money behind television will take a " wait and see " attitude - and monitor the impact of the new service in the city before spending a brass razoo on it's extension.
This is an area on which the Federal government should move. It was a previous government that forced the existing three networks to extent their coverage nationwide so that the majority of Australians were given a channel choice beyond just the local station and the ABC.
Remember the days when country TV started at 10 am - and closed at 10-30 in the evening ?
The recession could be the excuse for a return to the bad old days - if we let them get away with it.
Now is the time for those not living in the capital cities to be heard - loud and clear. And the first port of call should be the politicians.
Remember - those well fed people we elected to represent us and look after our interests !
It's about time they earned their keep !
The first started this week - but it can not be received in Wollongong.
What a disappointment to viewers living outside of Sydney to find that this new service will be limited to those in the metropolitan area - and what a slap in the face for sporting fans who have paid big money in anticipation of a sporting bonanza !
No doubt the TV people have intentions of sending the new channels country wide - when they get around to it. One of the limitations is the current economic meltdown. It is quite possible that the big money behind television will take a " wait and see " attitude - and monitor the impact of the new service in the city before spending a brass razoo on it's extension.
This is an area on which the Federal government should move. It was a previous government that forced the existing three networks to extent their coverage nationwide so that the majority of Australians were given a channel choice beyond just the local station and the ABC.
Remember the days when country TV started at 10 am - and closed at 10-30 in the evening ?
The recession could be the excuse for a return to the bad old days - if we let them get away with it.
Now is the time for those not living in the capital cities to be heard - loud and clear. And the first port of call should be the politicians.
Remember - those well fed people we elected to represent us and look after our interests !
It's about time they earned their keep !
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