Sunday, 31 May 2009

Justice denied !

It seems state premier Nathan Rees may have been too quick on the draw when he sacked Tony Stewart.

On the surface, it looked cut and dried. A staffer complained that she had been verbally abused by her minister - and that he had put his hand on her leg to stop her leaving the table while this tirade happened.

The premier appointed a barrister to conduct an investigation - and the finding was that the staffer was believed in contrast to the evidence of the ex-minister - and that's where the wheels fell of this whole affair !

The barrister concerned happened to be a woman with strong feminist views who didn't bother to interview other people at that table when this alleged event took place. Those sitting close to the minister and his staffer have since reported that they neither saw nor heard anything that would support the staffer's claim.

Then it appears that this staffer was not as " saintly pure " as previously portrayed. It seems that she made a suspiciously similar claim against an academic at her workplace in England - and that individual was forced to resign as a result.

It has also been revealed that the CV that supported her job application had claims of qualifications that were untrue - and she is subject to a AVO for an alleged assault.

Now the premier is stuck in an awkward stance. He will have egg on his face is he back tracks and reinstates Stewart - and his standing with the public is already on the nose. He tried hard to give the impression of being tough on ministers who fail to maintain standards - but it looks evident that fairness was not an issue in this sacking.

It looks likely that the matter will result in the worst possible outcome. It will be ignored - in the vain hope that it will somehow go away !

Saturday, 30 May 2009

Insurance shonks !

It is said that Leopards don't change their spots ! An insurance company is refusing claims over the recent heavy rain that deluged Coffs Harbour, and - surprise - surprise - it is the same insurance company that reneged on claims from the 1998 rainstorm that hit Wollongong.

At that time three standouts left policy holders without cover by claiming a " rain storm " as a " flood ", despite the rest of the insurance industry meeting these claims.

It is time the government passed legislation to clearup these anomalies. At present the only form of redress is court action by the policy holder, and that can be expensive and time protracted.

The simple solution would be for the government to appoint an insurance ombudsman to make decisions on these type of issues. At the same time, it would be a good idea to legislate to insist that every insurance company include with their policy document a simple checklist of what is covered.

The vast majority of insurance companies are both fair and honest, but inevitably there are shonky operators and a pressing need to drag them kicking and screaming into the light of day.

And that is why we have an elected government with the responsibility to " keep the bastards honest ! "

Friday, 29 May 2009

A declaration of war !

North Korea is playing a dangerous game. By declaring that is is renouncing the armistice of 1953 that terminated the Korean war - it is assuming that conflict with the United Nations forces and South Korea is to continue.

It's reclusive leader may need to create bold scenarios to preserve his crumbling leadership and whip his restive generals into line, but he may also accidentally bite off far more than he can comfortably chew.

This is not the same world as in 1953. The cold war is over. China is no longer a belligerent supporter of anyone rebelling against the west - and all world leaders are desperately trying to hose down a huge financial recession.

The United States has it's hands full in Iraq and Afghanistan - and it could value the 28,500 troops facing off with North Korea across the 38''th parallel for other duties.

The most likely flash points will be in the disputed Yellow sea area, scene of earlier naval clashes and the probable scene of confrontation if shipping is searched for illegal weapons.

North Korea is now in a different league from the 1950's. It is a proven nuclear nation with a supply of bombs and the means of delivering them. It is quite possible that for once China, Russia and the United States may reach agreement that the last thing the world needs is a maniacal tin pot dictator upsetting world peace and threatening it's neighbours.

If North Korea over reaches - and uses one of it's nuclear weapons in a show of strength - the response could be the total elimination of that nation by consensus by the " big three ".

President Kim's desperation may have led him to make a very unwise decision !

Thursday, 28 May 2009

Petrol monopoly !

The news that Caltex is to buy 302 Mobil petrol stations is not good news for motorists. It signals the start of a near monopoly.

The acquisition will reduce the major players to just four - Caltex, BP , Woolworths and Wesfarmers/Coles. Three if you consider the present Caltex/Woolworths an already lockstep combination.

The independents are already under pressure. The existing grocery chain people use their gigantic buying power to negotiate a petrol price that allows them to undercut competition - and they use this buying power to funnel car customers into their grocery stores.

The independents are the successors to what used to be called " the corner store ". They sell petrol and " convenience items " - which are mainly groceries that people need in a hurry.
Many years ago grocery shops, butchers, bakers and all manner of food stores only opened 9 am to 6 pm and 9 am to 12 noon Saturday. Outside these hours the only option was the " convenience store ! "

Now the big supermarket chains are open all hours - and all weekend - and some trade 24/7. It is in their interest to drive the 7/11 and 8/11 type operators out of business, because it drives custom back to their stores. An ideal way to do that is to deny them petrol business !

Caltex says that the Mobil move will merely increase their market share from 16% to 22%, but the increase in number from 296 outlets to 598 - taken in combination with the existing Woolworths/Caltex outlets - will increase market share to 44% - and that is enough to give motorists nighmares !

The regulatory authorities will need to think long and hard before they approve that deal. The price of petrol is already being manipulated with totally unwarranted price rises occurring without warning - and without rhyme or reason - and a further contraction of the big players will see more of the same.

And a thought to make car owners stop and shudder ! It's many years since we have had a petrol strike ! Just think what sort of chaos will erupt if the independents are driven from the market and supply is in the hands of the " big three " when that inevitability happens again ?

Wednesday, 27 May 2009

Future migration question.

A recent current affairs programme had a look at the Maldives, a series of islands in the Indian ocean that seem certain to disappear because of increasing sea levels.

The question asked was where would the Maldivians go when this happened. The answer was - Australia !

This is a question that we may hear more often fifty years from now, and we had better give it some thought and have an action plan for when it happens.

It would seem a reasonable proposition to the people of the Maldives. Australia is a continent with a small population. Surely there would be room for a mere 83,000 new citizens, given that we are a country that welcomes an annual migrant intake ?

A lot depends on what the Maldive people have in mind. If their plan is to seek entry as migrants, seek Australian citizenship and abide by Australian laws that should not be a problem, although the fact that their religion is Sunni Muslim would cause some people to hesitate.

Should they wish to either buy or be given space in Australia in which to transfer their nationhood - that would be entirely different . Few would countenance parting with Australian territory to create a new nation - and given the number of displaced nations likely to be inundated - we could end up like Africa - a maize of boundaries, laws, languages, currencies - and confusion.

We are a generous nation and global warming is certainly going to visit hardship in many parts of the world. The question of relocating to Australia is going to arise many times in the future - because we are an attractive place to live - and because we are one of the few places left on the planet with a large, unused land area.

Now would be a good time to set policy and let the world know what we are and are not prepared to consider. It would resolve and defuse many arguments and aspirations which are certain to arise in the lifetime of our children and grand children !

Tuesday, 26 May 2009

Our amazing inland desert !

Recent television news items have changed the perception of inland Australia. Many thought the Australian centre was useless, arid desert - incapable of any form of production.

Flood rains in the north of the country months ago charged parts of the inland river system and this is now starting to fill Lake Eyre in South Australia. Along the way, the water flow caused the supposed " desert " to green and spring to life, attracting a vast array of bird life from Whistler ducks to Pelicans.

The centre of Australia is a valuable piece of real estate in what is becoming an over populated world with global warming about to reduce the existing land mass. Rising sea levels will inundate parts of many countries and some island nations will disappear.

Equally importantly, we will soon face the problem of providing sufficient agricultural space to feed the extra teeming billions that will call this planet home !

Our desert is sending us a signal. It is ready to become productive - if only we supply it with it's need for water !

We are a dry continent as far as natural rainfall is concerned, but there is no shortage of water. We are surrounded by vast oceans of the stuff - and the technology exists to make that desert bloom into the world's food basket.

Australia has about a third of the world's uranium and this could fuel nuclear power generators to run desalination plants to supply the water to transform the desert to farmland. That water would need to be piped inland to decrease evaporation and used sparingly along the lines of drip feed irrigation - as used by the Israeli's to farm their desert.

Many will scoff and declare such a project beyond the recourse's of this country - with a small population of just twenty-two million. Australia would be justified in putting it's hand out to the world and requiring the United Nations to levy it's members to supply the necessary funds. It is worthy of being a world project !

There are already food shortages in many parts of the world and a project to bring an immense continent into food production could be a matter of life or death for future generations.

Mother Nature is sending us a message ! We would be wise to give it thought !

Monday, 25 May 2009

Flood insurance !

In light of the flood disaster in Queensland and on the New South Wales north coast, a lot of people will be asking a very important question. Is flood damage covered in their home insurance policies ?

In 1998 we had a massive rain storm hit Wollongong and in the days that followed that same question got conflicting answers. Initially most insurance companies refused claims - but that changed under public pressure and in the end most policies were honoured.

Three insurance companies dug their toes in and their policy holders have never had claims accepted. There were farcial situations where different people occupying the same building but with different insurers received totally opposing outcomes.

At present a major insurance company running television advertisements specifically claims that flood damage is covered in their policies - and goes on to list other water hazards ranging from burst pipes to tsunamis.

The problem is there seems no clear definition of what is and what is not covered where water damage is concerned as far as the legal situation is concerned. Following that massive Wollongong rain storm back in 1989 it seems that acceptance or rejection is still at the discretion of each individual insurance company.

That is an intolerable situation - and a disgrace that the Insurance Council should immediately remedy.

The state government should insist that the Insurance Council require it's member companies to state their policy on water damage - and publish the names of those companies who do offer automatic cover - and those who do not !

The insurance industry has long had a shonky reputation when it comes to honouring claims. It is time it was dragged kicking and screaming into the open and prospective insurers were able to know what they are buying without the gobbldygook of small print " if's, but's and maybe's " in most policies.

A home is the greatest asset most people own in a lifetime. There should be no question of what cover is provided !

Sunday, 24 May 2009

Nationalism !

In this twenty-first century the Australian flag is displayed as never before. Half a century ago it was missing from flag poles on national holidays - such as Australia day. This was a source of annoyance to the government and many citizens. Those visiting the United States were surprised to see " Old Glory " flying from private homes - the top of construction cranes - and even in offices and public buildings. It was everywhere !

This was at a time when we were still discovering our identity. On ANZAC day there is much talk of fighting for " flag and country ", but in reality many military units displayed the Union Jack. The Australian flag was not well known to either foe or ally - and it was deemed more important to be recognised as part of " the British " side.

Unfortunately this adoption of the Australian flag now seems to have become part of a nationalistic crusade. To some it has become a symbol of Australian rejection of those of a different skin colour, religion or homeland.

Our flag should be an expression of Australian pride - not a refusal to share with those who come here in peace !

The attitude that goes with wrapping oneself in the Australian flag has become divisive. Those that feel rejected look for something to cling to that represents their interests - and we recently saw opposing Sri Lankan demonstrations flying the Sri Lankan flag by Sinhalese nationalists - and a flag with a Tiger head representing Tamils. There were no Australian flags flown by either group.

As divisive as the flag issue is national dress. Women from India tend to cling to their Sari. Muslim women wear the head scarf. Strangely, this form of identity with a foreign land seems mostly concentrated on the female gender. It is common in parts of Sydney to see a fully veiled woman in the streets. Less common is the sight of a male wearing a dishdasha !

It will be a shame if jingoism turns our flag into a symbol of nationalistic oppression of others. It should be remembered that the Nazi's turned an Indian good luck symbol - the swastika - into something representing war, cruelty and oppression hated world wide.

We need to think carefully what we mean - when we wrap ourselves in our flag !

Saturday, 23 May 2009

Nano-technology.

We have become blase about the technology that surrounds us. It would be a rare home in this country that lacks a television set, DVD recorder, sound system and a computer. Our high school children are at the cusp of being given their own laptop to help their studies.

Now Australian scientists have made a break through in the astonishing discipline of nano-technology !

It is possible to store two thousand movies on a single DVD disc, and the potential is there to increase the capacity of the present DVD disc by an amazing ten thousand components - and all this should be commercially available within five years.

And like all great discoveries - it is really simple. Present DVD recorders read a single colour track. Australian scientists have managed to break this single colour into the entire colour spectrum - and record separately on each of the colours within that spectrum by simply altering the angle of the reader.

No doubt it will be a seven day wonder when this technology hits the market - and then like so much else it will be absorbed and taken for granted. Nothing surprises us for long these days - and it is only the old and the middle aged who remember when it was necessary to get out of your chair and go to the television set to change channels and alter the volume.

The remote control was a magnificent boon when that arrived - but today it would be hard to imagine any entertainment device that lacked one !

Such is the speed of progress !

Friday, 22 May 2009

Predatory pricing !

Our two independent Senators - Nick Xenophon and Barnaby Joyce - will introduce a private members bill to try and stamp out predatory pricing - where big companies deliberately employ selective pricing cuts to drive nearby competitors out of business.

This is prevalent in both the grocery trade and in petrol pricing. The grocery majors are quite happy to run a store at a loss if in so doing they bankrupt competing butchery and green grocer shops - and immediately inflate their prices back to normal when they have achieved a monopoly.

Stores that have a nearby Aldi outlet have lower priced merchandise than stores that lack this competitor.

A similar situation exists with petrol. The grocery majors use their bulk buying power to undercut independent competitors with the intention of destroying competition.

Unfortunately achieving parity and protecting smaller operators could have unwanted side effects. There is a real danger of " throwing the baby out with the bath water ! "

There is the suggestion of implementing a 35 kilometre exclusion zone whereby any price discount must be equally available to smaller operators. In such a scene both the grocery majors and independent service stations would buy fuel at the same price - but it would not stop the grocery major from dropping the profit margin to zero. That would take the implementation of a law requiring sales to contain a profit margin.

Any protection law would run the risk of destroying the corner stone of business. You get a better price if you buy in bulk.

We accept that the major whitegoods discount stores will offer us a better price on television sets, refrigerators and washing machines because their bulk buying power lets them negotiate a rock bottom price with the manufacturer.

If the law requires a corner shop nearby to purchase at an identical price the whole principle of SPQT - small profit - quick turnover - falls in a heap. The only sure outcome would be a price rise by the discounter - because advantage has been lost !

The parliament needs to tread carefully when it considers " geographic price discrimination " legislation. Pricing is a complex can of worms and it would be too easy to end up with an unfortunate result by trying to achieve a level playing field.

The intention is good - achieving it is near impossible !

Thursday, 21 May 2009

Electricity price - and inflation !

From July 1 the price of electricity will rise by about 20% - and for most households that means an extra $ 3.50 to $ 4.00 per week drain on finances. Pensioners will get an extra $ 18 a year utilities allowance, thus the state is clawing back some of that $10 rise granted in the Federal budget.

The screams of pain are concentrated on the blow to household budgets, but that electricity price rise will most certainly hit even harder with an across the board leap in inflation.

Next time you are in a supermarket look at the huge number of ceiling lights making it a pleasant place to shop. Then consider the refrigerated aisles keeping food in pristine condition - and think what extra cost of running that price rise will have on their power bill.

It is as inevitable as night follows day that the price of all items will rise to cover that cost. Now extend that thinking to all the other businesses that provide our needs - and remember that what we pay in home electricity price is called the " domestic rate " - and that is far cheaper than the rate levied on premises deemed " commercial ". As a result - that 20% will translate into a bigger hit on the hip pocket for those running a business - and that means an increase in retail prices for us consumers.

We are told that this price rise is the only alternative to load shedding and blackouts - which is an admission that our state government scrimped upgrading the power industry and doing essential maintenance over the years.

No wonder they were so desperate to shed ownership of power generation a few months back.
They knew bad news was coming. The only difference is the extent of that bad news - and that is something we will learn at our cost when the price rise impacts on industry !

Wednesday, 20 May 2009

The injustice of remand !

Today's Illawarra Mercury carries the story of Edward Dutton ( 53 ), the man behind the $ 243 million Port Kembla Soybean biodiesel plant. It is a story that causes some disquiet at the injustice of our prison remand system.

Mr Dutton was a South African opposed to that nation's apartheid system of separate development for black and white citizens. He earned the enmity of his government and he was charged with what he believes were trumped up fraud allegations in 1995.

Fearing that he would not receive a fair trial he moved to Australia and in 1996 the South African government launched extradition proceedings. Mr Dutton was arrested - and spent the next five years in an Australian prison.

The South African government failed to satisfy an Australian judge on the quality of the evidence put before his court and the extradition was rejected, but Dutton remained in prison awaiting new appeals. Eventually the South African government dropped the extradition application - and the present South African government has no case against him.

There is no statute of limitations on remand in this country - and remand ignores the basic foundation of the justice system - Habeas Corpus - the right for an accused to be promptly put before a court and tried to determine the allegations upon which he or she were arrested.

The fact that a prisoner can languish for years on remand while the prosecution delays preparing it's case - and then can simply drop the charges and walk away whistling Dixie - is neither justice being done or being seen to be done !

There is no compensation for a person so imprisoned. In fact, the law as it now stands opens the door for political corruption and the use of remand to silence a person irritating the government with awkward questions.

It is time a strict statute of limitations applied. The prosecution should be required to make it's case in adequate time - or the remanded prisoner walks free - and that should equally apply to foreign jurisdictions or local prosecutors !

And a person held in prison for an accusation that fails to proceed should be eligible for at least loss wages for the time incarcerated.

Justice is - after all - a two edged sword ! It seems that in the case of remand one side of that blade is deliberately blunt !

Tuesday, 19 May 2009

A war with no winners !

The insurgency in Sri Lanka is over - or is it ?

The Tamil Tigers have been defeated militarily, but there is every chance that their war to secure autonomy will redevelop as a guerilla insurgency. The Tamils are a big group in India and they are well financed. During this last conflict they proved to be a formidable fighting force, developing their own army navy and air force and winning control over a third of the island for many years.

This was a war that nobody actually won. Some 70,000 to 80,000 died as a result of the fighting and the Sri Lankan economy is a basket case as borrowed money was thrown into buying an ever increasing stream of weapons to decide the battle.

Nothing has changed. The majority Sinhalese consider the Tamils inferior and exclude them from opportunities in government service or the community generally. The Tamils - who were originally imported from India to provide much needed labour - demand to rule themselves in Tamil majority areas of the island. Neither side will give an inch !

There is an eerie parallel here with Fiji. In both cases an imported minority is being resented by the original majority people of the home islands - and denied equality and equal rights.

It is too late to repatriate them to their place of origin because by now they have become local for many generations - and regard this as their new home.

Peace would need a change of attitudes by both sides - and there is no chance of that happening in the short term. The victors in a battle are unlikely to be generous - and further humiliation will only exacerbate a hopeless situation.

The sad thing is that for Sri Lanka and Fiji the only prospect seems to be - more of the same !

Monday, 18 May 2009

Identity looters !

Human ingenuity is a great thing. It has enabled the human race to set foot on the moon and to devise world communication in the form of the Internet - but it also has its downside !

As fast as one security arrangement is put in place that same ingenuity creates a new scam to enrich the perpetrators by robbing innocent people.

The latest plan being worked by the scammers involves identity theft. Mail boxes are plundered to obtain superannuation statements and information that can be used to create the householders supposed identity.

New bank accounts are then opened and a fictitious self managed superannuation scheme created - then the genuine superannuation fund is contacted and convinced that their client wishes to roll over the capital into the fictional fund.

It is done with finesse - and it has proved very successful !

There will be a flurry of counter measures. Householders are advised to use a secure, locked mailbox - or if that is impossible - to consider renting a post office mail box.

Superannuation funds will no doubt put in place confirmation measures to make security contact with their customers whenever any major withdrawal or change of arrangements is signalled.
To some, this may seem a tedious waste of time, but just as banks carefully scrutinise customer accounts for transactions that seem out of character, making superannuation secure is in the interests of both that company and it's customers.

Another security hole will be plugged - but robbery scams are a game that never ends. The human mind will devise more ways of getting at victim's money.

It is a case of always being prepared for the unexpected !

Sunday, 17 May 2009

Considered " expendable " !

Members of the Australian Defence force know that they may be placed in harms way in defending their country. There can be no higher sacrifice than laying down ones life. It would be reasonable to expect that the nation would be grateful !

Our defence people have a right to expect that their dependents would be looked after in the event of their death on duty. It therefore comes as something of a shock to learn that elements in their government are suggesting that they take out private life insurance because the nation's compensation falls short !

This obscene suggestion is an affront. Serving in the defence industry is high risk and compensation for both death or serious injury should be at the highest level.

Whoever made the private insurance suggestion was not facing reality. Many insurance companies would not accept a person in a high risk industry, or would insist on a hiked premium as compensation.

Insurance companies offering " accidental death " cover would not accept a battle death as " accidental "- and in many cases policies have a long list of exclusions that cover dangerous sports, flying in private aircraft and similar occupations.

We expect politicians to pass laws that provide a fair outcome for those who risk their lives on our behalf. Obviously compensation for defence personnel is less than adequate - and needs to be urgently reviewed.

To ignore that need would be a national disgrace - and a badge of dishonour !

Saturday, 16 May 2009

Priorities !

It is clear where the priorities of our cash strapped state government lay - and revenue raising tops the list.

Twelve million dollars was allocated for improvements to the accident prone Picton road. What makes this traffic corridor so deadly is a mix of worn road surface allowing water to pool when it rains - and consequently causing cars to acquaplane - and lack of a divided two way carriageway.

The money is not sufficient to provide a divided road, but at least the provision of a wire rope divider system would reduce the head-on risk - and resurfacing of the road surface and better water run off would eliminate acquaplaning.

You would think that both these measures would take priority - but instead the government has them way down the list - preceded by the hurried installation of five " police enforcement bays " at a cost of $ 50,000 each.

This will make it more convenient for the police to safely conduct speed traps - and keep those dollars rolling in to the treasury !

Obviously, speed is a factor in road safety, but time after time the coroner has made a finding that lack of traffic separation and water pooling on the road has been the main cause of fatalities.

It seems this state government has it's own set of priorities - and money heads the list !

Friday, 15 May 2009

Brinkmanship !

An interesting tactical battle is developing over Tuesday nights budget. Kevin Rudd is suggesting that any move to block budget measures would be unacceptable and could lead to the issue providing a trigger for a double dissolution - and a fresh Federal election.

In his " Right of reply " speech Malcolm Turnbull threw down an interesting challenge. He seemed to suggest that the only move to be blocked by the opposition would be the paring back of the private health insurance subsidy and a hike in the tax levy for those uninsured.

He offered to replace the nearly $2 billion revenue loss with a suggested 12.5% tax increase on tobacco products, resulting in a price increase of about 3 cents a cigarette.

This will be very hard for the government to reject. Obviously reducing the insurance subsidy will cause some people to drop their insurance cover and this will put more pressure on the already over stressed public hospital system.

At the same time, tobacco is one of the primary causes of ill health overloading that hospital system, hence a sharp price increase in tobacco products will help convince many smokers to quit the habit.

That would be an uncomfortable issue on which to send the people back to the polls. Many would think it was a perfectly reasonable compromise - and the opposition would claim an early election was simply a tactic to gain more time in office before the economy delivers even worse figures.

Tacticians on both sides of the political divide will be burning the midnight oil to calculate how either position would stand with voters.

Unfortunately the final stance will have a lot more to do with political dogma than what is best for the economy - and best for the people of Australia !

Thursday, 14 May 2009

Wasted rescources !

This state government if often accused of being incompetent. It would be hard to justify their plan to spend millions installing point to point camera surveillance of our highways to curb truck speeding - when the equipment to do the job is already in place - and being ignored !

$ 1.6 million was spent upgrading Safe-T-Cam equipment which gives it the ability to differentiate between car and truck registration plates. It therefore has the ability to detect speeding on highways where cars can legally travel at 110 kph but trucks are restricted to 100.

Despite this, the RTA only uses these cameras to monitor the hours drivers spend behind the wheel !

There is a slogan governments use to demand economies from their departments - " Do more with less " !

How about taking their own advice and bringing Safe-T-Cam into the speeding fight to make our roads safer ?

It is in place - paid for - and ready to go ! All it takes is the will -and a little common sense !

Wednesday, 13 May 2009

A " Hail Mary " budget !

It would be very easy to dismiss last nights budget as being an exercise in hopeful expectations. We are about to borrow and spend an enormous amount of money based on a 2011 recovery that many people will question.

It is also evident that personalities came into the forming of this budget. The distaste that Kevin Rudd has for Nathan Rees and the NSW Labor government is reflected in the paucity of projects to be funded i n this state - and Wollongong - with one of the country's top unemployment rates - merely got a new building for the University.

The pension rise is welcome, but even that has problem areas. The gap has widened between a pensioner and an unemployed person - and in this sort of recession those unemployed are certainly not " dole bludgers ". The expected million unemployed are likely to resent their inferior financial help.

Raising the retirement age by two years was overdue, but it will not be fully implemented until 2023. Scrapping the pensioner bonus scheme for those who continue to work after becoming eligible for the pension makes no sense whatsoever - and the total silence on expanding health care means no improvement in our tottering hospital system.

This budget is a big gamble - but at least we will see something tangible for our increasing debt. There will be improvements to roads - rail - ports - and the broadband.

Lets just hope our children can find work to repay that debt - and that the treasurer is right in predicting the recovery !

Tuesday, 12 May 2009

The night of the long knives !

When the Treasurer rises to deliver his budget tonight there will be winners and losers - and in a recession the losers generally exceed the winners.

One persistent rumour is that this budget will drop the $ 14,000 first home buyers grant for existing homes, but retain the $ 21,000 grant for new homes.

That would certainly please both builders and the building materials industry, and it might even provide relief for the housing rental shortage. The first home buyers grants have lifted prices at the lower end of the housing market because of the rush to take advantage of the incentive and this has induced some recession hit investors to sell rental accommodation to restore liquidity.

There is a danger in pushing new home buyers into the higher priced new h0me market. This recession is far from over and we are warned to expect further rises in the unemployment statistics.

In such a scenario buyers might be wiser to stay in the lower cost, used home segment and cope with lower mortgages, but the lure of an extra $ 7,000 is sure to tempt many to take the plunge - and go for the excitement of buying a brand new, state of the art home.

The government is talking about schemes to help those in trouble because of retrenchment, but surely there is a limit as to how much money - and in such cases we are talking about money borrowed by the government - can be found to fund relief.

It all boils down to those thinking of buying doing their sums, making informed decisions and calculating the risks.

It would be unwise to take the plunge in the expectation that if things go wrong - the government will be there to put it's hand in it's pocket - and help out !

Tonight - Australia will wait for the newscast - hold it's breath - and put all those rumours to rest !

Monday, 11 May 2009

The propaganda wars !

Civil war is a dangerous place for civilians. They tend to be the meat in the sandwich when opposing forces do battle and in recent times they have been a propaganda tool to solicit public opinion.

This happened recently in the Gaza strip. Hamas fired rockets into Israel and the Israeli army responded with artillery and air strikes. Hamas sited it's rockets where civilians were massed - and the returning fire killed and maimed hundreds.

It is happening right now in Sri Lanka. The Tamil Tigers are on their last legs, but they are fighting a losing survival battle min a tiny coastal enclave. Trapped civilians are being used as a shield - and given the fanatic element of the Tiger's leadership there is little chance that reason will prevail.

A similar scenario is developing in Pakistan. The Pakistani army - long the real force in that country - now has no alternative other than to fight the Taliban or see this Islamic country fall to a fundamentalist regime.

Inaction has allowed the Taliban to consolidate it's hold on the Swat valley. A deal was signed allowing the imposition of Sharia law in exchange for the insurgents laying down their arms. This was immediately broken by the fundamentalists - who then surged towards the capital.

The Swat valley is a heavily populated area and with cynical disregard for casualties, the Taliban are using this population to blunt the army attack. The chances are high that the toll from this crucial battle will be mounting civilian dead.

At stake in Pakistan is that country's nuclear arsenal. The world's worst fear is that nuclear weapons could fall into the hands of religious fanatics who vow that all others will either embrace their religion - or die !

The fate of civilians are merely pawns in a massive power game, being used as a propaganda weapon to manipulate public opinion. If the world falls for this ploy - a much bigger loss of life may occur if fanatics achieve control of nuclear weapons - and the means to deliver them to world targets !

Sunday, 10 May 2009

Forgotten money !

The days before budget night were usually a good time to invest in a slab of beer, a bottle of Scotch - and as many cigarettes as your wallet could manage. In tough times a hike in the prices of " sin " articles was an almost certainty !

The other " sin " was anything to do with gambling, but that was harder to tax more heavily. Way back in the Neville Wran era the government deleted horse racing dividends ending in five cents. Such dividends were rounded down to the nearest whole number - and the government pocketed the missing five cents from such transactions.

More recently the state government introduced a new time frame on TAB and lottery winning dividends. A winner must now collect within twelve months of that win - or the hand of the treasurer scoops the pool and the funds end up in " consolidated revenue ".

There is another " win for the government " that is carefully shaded from public view.

That is the number of uncollected TAB bets and the number of successful Lotto, Lottery and " Scratchie " wins that are never presented for collection.

It stands to reason that many lottery tickets are given as birthday gifts, often to people in other states - while bets made in pubs by inebriated people often end up going through washing machines or discarded without checking race results.

It would be interesting to know the value of this government bonanza - but that seems to be as well guarded as any major state secret.

The interesting thing is that it is in addition to the declared state profit from gambling revenue - and this is the " cash cow " the government is planning to sell !

Obviously the left hand does not know what the right hand is doing !

Saturday, 9 May 2009

Sale of the century !

A lot of people in this state must be wondering just what the state government has in mind with the proceeds of their never ending sale of our " crown jewels ".

They have been temporarily thwarted in their attempts to sell off the power industry. Prisons are not changing hands, but it seems the state is opting out of running them and intends to bring in a " prisons for profit " private management arrangement.

Now the latest thing for sale is the eleven aged care facilities - including Garrawarra located near Helensburgh.

This is at a time when statistics show that we are facing a coming surge in age care needs as our population increases the ranks of senior citizens. That sale simply does not make sense !

The interesting thing is to discover what plans the state government has for the money they will receive from all these fire sales - and on that they are strangely silent !

They have in mind a Metro - with a seven kilometre track - that will cost billions and not do a thing to service the main population of western Sydney - but that is just as likely to be dumped before it starts - like so many other similar schemes.

It seems more likely that this state government is is selling off the crown jewels purely to finance day to day running costs of the state, and that is a sure way to send the citizens to the poor house !

You don't have to be an economist to know that families that sell their assets to maintain their lifestyle have only one certain destination - and that is the bankruptcy court !

A sure sign of the times is the plan to sell off state lotteries. This is an enterprise that must rank alongside printing money as a source of profit.

When the public buy lottery tickets they pay one hundred percent of the funds before the draw even takes place. Sixty percent of that money is returned to them in the form of prizes - and the government pockets the other forty percent.

Who in their right mind would even consider selling such a cash cow ?

The big question is - what is the government planning to do with our money ?

Friday, 8 May 2009

An unwanted message !

On Monday, Prime minister Kevin Rudd will visit Wollongong. It will be the first visit in his eighteen months in office - and he will meet with a carefully selected - invitation only - group from business and the trade unions.

This will be pure politics. The given agenda will be jobs, but it seems certain that what he will not hear is the litany of reasons why this neglected part of Australia can not meet it's potential.

There will be no plan to drag the Sydney/Wollongong rail line out of the steam age era and introduce a fast service linking these cities, despite an ever growing commuter stream bringing it to capacity.

There is no urgent plan to upgrade the Princes highway - the only means of servicing the towns linking Wollongong and the Victorian border. Every now and then the region is thrown a bone - a few dollars for patch-up work, but a divided highway is not even proposed for later this century.

Then there is the F-6. Money is being spent to provide transport corridors to the north and west of Sydney, but despite a reserved route existing to St Peters there are no plans to extend a southern expressway into the state capital.

Wollongong is constantly told it is important, but not important enough to be on the list of expenditure to improve services.

Yet Port Kembla is being expanded to clear services Sydney doesn't want - but without any thought or attempt to improve rail and road movement to clear this added freight.

A case in point - Picton road ! Another " El Cheapo " patch-up job when what is really needed is a divided, dual carriageway to clear heavy transport to western Sydney.

No doubt the prime minister's meeting will be a carefully orchestrated media event, but most citizens of this region will not be holding their breath and waiting for an announcement of development plans for road and rail.

The problem is that this area solidly votes Labor. When the Liberal Coalition is in office it doesn't spend money here because there are no votes to be gained. When Labor is in office - it doesn't have to - because they have the vote anyway !

The needs of the area are an unwanted message shunned by both sides of politics !

Thursday, 7 May 2009

The " phantom " hospital.

It seems that Bulli is Wollongong's " Claytons hospital " - the hospital you have when you are not having a hospital !

It has beds and nurses - and operating theatres - but now those operating theatres are only in use occasionally and for one type of procedure - Ophthalmic treatment.

Despite a union ban, equipment to fit out the theatres at Shellharbour hospital was procured from hospitals other than Bulli and the two other Bulli specialities have been transferred to Shellharbour.

So we have the ridiculous situation of a fine hospital not being used - but with staff and facilities that are badly needed to reduce patient backlogs. All that waste will continue because the state government is fearful of announcing an unpopular decision to close the facility - which now seems inevitable anyway.

There is some merit in closing Bulli if it means expanding Shellharbour. The south is where the population growth is occurring - but what is happening now is a clear case of wasting money - and putting patients at risk - because of politics taking preference over reality.

The risk is that a lack of decision making will allow this farce to go on indefinitely - and badly needed health system money will be expended for no gain !

Wednesday, 6 May 2009

New camera speed traps.

The state government has announced that it will implement nineteen new camera traps with number plate reading technology to monitor truck movements.

The plan is simple. Trucks will be monitored twice and the computer will calculate the time elapsed. If that distance covered was impossible without speeding, a fine and loss of demerit points will be in the mail.

The government has stressed that this new system will only apply to trucks. Motorists in cars have nothing to fear and will not be targeted.

This does nothing to change the main reason for truck speeding - unreasonable deadlines imposed on truck drivers !

The system for inducing speeding is carefully crafted. Drivers are given a rate for making the delivery - with bonuses for making it by a certain time. The base rate is low and a decent income can only be attained by attracting the extra bonus money.

If this is not changed and efforts made to stamp out the practice all these cameras will promote will be scams to use false number plates and plate changes between known camera sites.

It is also evident that of the nineteen nominated sites - not one is on the Princes highway.

This busy - neglected - two way road has no rail competition and all goods to the towns between Wollongong and Melbourne travel by truck.

It stands to reason that a road used by tourists gawking at the views and motorists towing caravans will delay trucks trying to make a decent living - and tempt them to overtake in unsafe places because of the lack of passing lanes.

It seems that these camera traps have not been well thought out - and once again the safety of the people of the south coast has been far from the mind's of government planners !

Tuesday, 5 May 2009

Carbon retreat !

Kevin Rudd had a problem. One of the reasons he won office was his promise to reduce global warming by introducing a " cap and trade " system to reduce carbon dioxide emissions by industry. He successfully portrayed himself as leading this fight and castigated John Howard as lacking in interest.

Now he has a recession to deal with - and going ahead with that cap and trade regime would be economic suicide !

Rudd has walked away from his commitment by putting back the commencement date by a full year - moving it until after the next election !

He has softened it's impact by moving the carbon tax rate from $ 40 a ton down to $ 10 - and thrown in a whole heap of free carbon credits to industry - a move that will make the tax almost worthless as an incentive to install costly carbon reduction measures.

In a cynical act of politics he has offered an olive branch to the Greenies. The target remains at 5% reduction - but the upper limit has risen from 20% to 25% - on the proviso that the rest of the world jumps aboard. This is highly unlikely - given the present lack of enthusiasm - hence the offer is totally hollow !

Had there been no recession it is likely that a nominal reduction scheme may have got underway in Australia and some other countries, but world consensus was most unlikely.

We will probably have to learn to live with a hotter world temperature - and it's consequences - because a compact with other nations is simply not going to happen - and that new starting date will probably be moved again and again - to a far away starting point !

Monday, 4 May 2009

Home on the floodplain.

It seems that the state government and Wollongong council have made up their minds to press ahead with the West Dapto land release - despite it being clearly situated on a floodplain !

The arguments against this have been known for years. Apart from the certainty that there will be flooding from time to time there has been no clear plan to provide access. The Fowlers road bridge appears dead and buried because of cost - and the new residents will have to face the chaos of entering and leaving by Bong Bong road.

The flood thinking seems to be on the basis that a host of Australian country towns are near a river and face flooding. When that happens the government declares a state of emergency and throws money to relief agencies.

West Dapto will be just another such town. Residents will just have to grin and put up with the inconvenience - and hope that their insurance policies cover floods.

It seems strange that we have a whole continent at our disposal and a population of just twenty-two million people - and we can't seem to find a bit of flood free ground to extend the city of Wollongong.

Maybe we just aren't trying hard enough !

Sunday, 3 May 2009

Sexting !

Fads come and go - and most of them are harmless ! This latest craze of " Sexting " has the ability to come back and haunt people in later life.

We live in a more sexually permissive age but the trend for teenage girls taking nude photographs of themselves - and texting them to their boyfriends is fraught with danger.

What seems like a harmless prank can backfire. If the relationship breaks up those photos may end up on the internet or be circulated amongst people to the detriment of the subjects reputation.

Then there is the problem of them reappearing in later life when the subject has achieved fame or a prominent position in society.

The problem is that technology has made it so easy The digital camera and the computer have opened up photography for everyone - and we no longer have the need for a photo lab to process the prints.

This is a new headache for the parents of teenage girls. Peer pressure feeds such a fad and young minds do not consider future danger.

It is one more reason for making sure that computers are located in plain view as a family tool - and not locked away where secrets can be hidden.

The plan to provide all high school students with their own laptop is a way of improving the learning process - but unfortunately it will also enhance fads such as " sexting " and many more that the juvenile mind will create in the future !

Saturday, 2 May 2009

Fuzzy Wuzzy Angels !

Over sixty years ago newly enlisted Australian soldiers fought seasoned Japanese troops in the battle for the Kokoda trail. It was a test of endurance in horror conditions - tropical heat, - steep mountains - mud - snakes - and stifling humidity.

That battle was won, but part of the success was undoubtedly the help of Papua NewGuinians - what our troops referred to as " the Fuzzy Wuzzy Angels ".

The local tribesmen carried our wounded to medical facilities - and returned bearing food and ammunition. With their help the Japanese invasion was halted - and it became the turning point of the war.

Unfortunately their efforts were never officially rewarded. The war ended - our troops came home and Canberra turned their back on these brave men - and reneged on promises of compensation

Now it seems we are giving belated recognition - but doing it on the cheap !

Prime Minister Rudd has announced that a medal will be struck recognising the bravery and help of the Fuzzy Wuzzy Angels- but there is a loud silence on any suggestion of compensation.

There are not many of the originals still alive - and those that are will be in extreme old age. Considering that average earnings in this jungle community are low the payment of a few thousand Australian dollars a year would buy them a little luxury for the short time they have left.

The ranks of the Australians who fought at the battle of the Kokoda trail are also thinning. A few more years and they will also be gone. There is no doubt that we owe a big debt to the people who gave us critical help when it was so sorely needed.

A medal might be nice - but a small annual stipend would not break the bank - and it would restore an overdue obligation !