Wednesday, 31 August 2011

" Just big ? " - " Or too big ? "

The H.J.Heinz company - one of the world's biggest suppliers of food products - complains that the  duopoly on food retailing in Australia by Woolworths and Coles is actually restricting the product range offered to shoppers.

These two retail chains command eighty percent of all food sales in this country - and this gives them immense power.  What the average shopper gets a choice to buy depends entirely on what products the central buyers choose to allow on their shelves.    You may have noticed that the choice of a selection of brands for each individual product has been diminishing - and been replaced by a similar product marketed under each stores " in house brand " occupying more and more shelf space.

This is a two sided argument.   It is in the stores interest to sell their house brand product in preference to a competitor because they gain all along the profit chain from the raw material to the packaged product, but when they deny another product shelf space they probably kill off that brand and cause it to disappear.
This is one reason why Australian manufacturing industry is contracting rather than expanding.

The house brand product is usually cheaper than competing brands, but that does not mean that the product specifications are identical.  It can be interesting for those who have the time to compare the product information and decide which offers the best deal on fibre content, fat and salt - and that other vital component - actual product size delivered by weight - not just the size of the packaging.

It seems to be a freak of nature that just two grocery chains have captured eighty percent of the market, and this is unique to Australia.   In the big population countries of Europe and in America this industry is spread between five or six similar giant chains, and therefore competition if fierce - and as any traveller will tell you - prices are much lower than here.

The answer to this growing problem lays entirely in the hands of the shopping public.   If we continue to applaud the convenience of having these chains expand - and enter into a bigger supply line that now includes petrol, liquor and services like insurance and banking - we will pay the price of having the choice offered to us restricted by their company policy.

The question seems to be.   " Are they just big ? "   -   "  Or is that  " Too big ? ".

Tuesday, 30 August 2011

Failure to disclose !

Potential home buyers considering the vast new estates soon to be released around Catherine Fields are dismayed to find that plans to drill coal seam gas wells do not get even a faint mention in the pre-release publicity.

The State government has ducked for cover, claiming that applications will not be received until after October, and by that time full details will be available, including the terms under which drilling will be permitted.   It is suggested that no gas well will be allowed within two hundred metres of any home site.

It is not the actual location of the wells that is causing concern.   It is the fact that gas wells generally have an unsavoury reputation for poisoning ground water tables and spreading cancer causing chemicals that make their presence anywhere unacceptable as a location for family homes.

Because of this reputation, the gas well people are skitterish about revealing their plans and this will spread a cloud of uncertainty over people's dreams and aspirations.

People do not buy land for housing on a sudden impulse.  It is usually at the end of a long term of saving and planning, and they have the right to know what they are getting into from the first release of plans for new estates.   Any adverse factors will determine the asking price of the land, and it will certainly be taken into consideration by those providing mortgage loans for new homes.

Unfortunately, even those living in existing homes are not free from worry over gas well drilling.  Leases have been signed to allow at least exploratory drilling in established suburbs - and this is a new industry with no long term history to fall back on.

Owning a home is usually the biggest single investment that any family makes, and home owners have every right to demand that there are safeguards in place to prevent financial calamity arising from a failure to disclose adverse conditions prevailing before the sale.

Just what will be allowed in the way of gas wells in both old and new housing areas needs to be very specifically spelled out and put into legislation before even one block of new land is released in Catherine Fields - or West Dapto in Wollongong - or anywhere else in this state.

Anything less is a failure of government responsibility !

Monday, 29 August 2011

The " Caucusing " option !

Labor candidates standing for office in this coming Saturday's Wollongong council election have promised that they will not be caucusing if elected.   Their counterparts at Shellharbour are of a different sentiment - and will adopt the caucus vote if they are successful.

The " caucus " is a plank of the Australian Labor party.   Members of that political persuasion meet before holding an official council meeting and discuss the issues likely to come before that meeting.   They reach a decision by majority vote - and once that decision has been taken it is mandatory for all party members to vote along those lines within council.

Basically, the caucus option was one of the main reasons that Shellharbour council was deemed unworkable - and dismissed.   In Wollongong, it led to a virtual cartel dominating council business - and probably helped introduce corruption.

The whole idea of democracy in council affairs revolves around fair minded people listening to debate on issues and then making up their own minds on the merits of each case.    It seems that a " caucus vote " simply introduces a requirement that any decision reflects the position of a political party, rather than  the genuine needs of the city and it's citizens.

Unfortunately the caucus system is not restricted to the Labor party.   Others may deny it, but there is no doubt that contentious issues are discussed on what is commonly known as " the grape vine " - and positions taken long before they reach a council vote by all manner of sub groups and interested parties.

Getting something through council has long been a matter of using influence - and a hefty donation to election funds seems to help that cause.

At least the caucus issue is out in the open at Shellharbour - and voters can make up their own minds whether they accept it or reject it - before they put pen to ballot paper.

Sunday, 28 August 2011

Curbing loan sharks !

One of the most important responsibilities of both the Federal and state governments is to protect citizens from unscrupulous traders who are" rip off merchants ".    This may be in the form of car yards that wind back the odometers of cars to deceive buyers about the actual distanced travelled - to  real estate agents who trick buyers into spending money on property investigations by understating the likely auction price. 

Now Barry O'Farrell's state government is moving to curb the excesses of the so-called " Pay Day loan industry ".

They have always been with us.   Years ago they operated out of seedy boarding houses and went door to door collecting small change from desperate housewives battling to put food on the table for their families.  Now they have gone " respectable " - operating from glitzy main street premises.    They offer quick cash to tide people over the gap of a few days - until the next " pay day ".

The problem is that the interest rate is crippling and the fine print adds additional costs which means some vulnerable people are never going to fully escape from debt, and this is compounded when the balance still owing at the end of the loan is " rolled over " into a new debt.

The government is going to legislate to cap interest rates at 10% of the amount borrowed, with an extra 2% each month on the balance owing.   Somebody borrowing $ 100 will then be liable for just $ 12 interest on the loan, not crazy figures such as $ 133 over the same period..  Roll-overs will also be banned.

The problem will probably shift from up-front premises to lone operators prowling depressed income suburbs - just as it was half a century ago - and the police will need to employ twenty-first century control methods to detect and clamp down on the shysters.

One thing is absolutely certain.    There will always be desperate people in need of what they think will be a " quick loan " to get them over a cash shortage.

And there will always be loan sharks with money in their pocket to service that need - at exorbitant rates of interest.

The government may manage to reduce the trade - but it will never completely disappear !

Saturday, 27 August 2011

A cruel punishment !

This week in state parliament the Labor Opposition joined with the Greens and the Shooter's Party to strike down Barry O'Farrells anti-graffiti legislation.   The proposal would have seen all offenders put before a court - and would have given magistrates the power to prevent those convicted from obtaining a drivers license.

It is so tempting to politicians to use the issue of a driving license as a legal punishment, but the ramifications of such action not only have implications for the young person involved - they also are boomerangs that come back and hit other members of the public behind the ear !

Huge numbers of young people already are barred from obtaining a driving license because the state debt recovery office has them on a banned list because they owe money for offences such as riding a bicycle without a safety helmet.   Not only can they not obtain a drivers license, but this ban extends to obtaining a legal " proof of age " card, hence they are also excluded from most entertainment venues which exclude all those under eighteen.

There is an obvious outcome to such a ban.   They drive cars without a license - and when caught they get a fine - and further extension of the driving ban, and they resort to forging and other criminal activity to enter licensed premises with their mates.

The people who offend with graffiti are usually young - and the young do not think of the consequences.   They think they are " bullet proof " and reality only sinks home when lack of a driving license prevents them getting a job, having a social life and being a normal member of society.   Young people are naturally rebellious - and the outcome of this rebellion is usually more license ban extensions.

There are consequences for the general public.  Those without a legal license fall outside the protection of the insurance cover that applies to driving.  Not only  can it be impossible to recover the cost of car damage from a young person with no assets, but those crippled for life may also miss out on compensation to recover from their injuries.

It is tempting to use the withholding of a drivers license as a weapon to force payment of fines and to punish those who offend and go before our courts, but there are unintended consequences - and the outcome of those courts is supposed to be rehabilitation.

A sixteen year old with a spray can is not likely to be thinking about the time he will be able to drive when he is tagging a wall.   That will come home to him years later, when he is of age to drive and finds that his stupidity will delay that option for more years to come.

This legislation has been struck down for purely political posturing - and it will go back before parliament in the days ahead - but hopefully it may receive more careful consideration - and an evaluation of the real consequences of using one of life's necessities as a form of punishment.

Friday, 26 August 2011

A tactical battle !

Most Australian's are fascinated by the battle of tactics being fought inside parliament house in Canberra.

Prime minister Gillard and her government are defending the member for Dobell, Craig Thomson - who is accused of using union funds to access " sex services " while he headed the Health Services union from 2002-07.

It seems that more than $ 100,000 is involved and the evidence chain shows that the source of acquisition came from a credit card issued to the member, which was verified by his driving license - and which originated from motel rooms booked in his name.   He claims that these debts were not his, but refuses to explain who might otherwise have access to his card, or if he suffered a burglary and loss of the cards.

This murky matter becomes more complex when it was revealed that Thomson sued a leading newspaper which broke the story - but later withdrew from the case, causing him to be saddled with heavy legal costs that he was unable to pay.  The Labor party rode to the rescue and contributed $ 90,000, saving him from bankruptcy - and consequently  losing his seat in parliament - and bringing down the government.

The aggrieved union involved has made it clear that they will fully assist in any police enquiry into this misuse of their funds - and the Opposition is using every legal tactic in the book to ensure that this keeps on the front pages of the media - and that a speedy enquiry is not derailed by being left to a Fair Trading investigation.

This matter will remind some of the events of 1975 - when the Governor General sacked prime minister Gough Whitlam.    Clearly, the fate of Julia Gillard's government rests on this one member retaining his seat, and that will depend on whether the Opposition manages to win the tactical battle and bring this matter to a decisive outcome.

If that outcome results in the member being found guilty of a criminal charge, the fate of the government will depend on the punishment handed down.   A term of incarceration of one year or more will automatically declare his seat vacant - and lead to a by-election.

It is possible that high priced lawyers will drag out the proceedings and delay the enquiry, but the damage may already have been done.   This government's poll ratings are abysmal and these accusations can only reinforce the perception that the present government lacks coherency - and is simply staggering from one crisis to another.

Win,  lose or draw -  event a hint of hiding a crime can be the kiss of death to public confidence  !

Thursday, 25 August 2011

Polygamy - in Australia ?

This week it was suggested in Federal parliament that if same sex marriage became legal it was inevitable that polygamy would be the next domino to fall.    Polygamy is very much alive and well in this country - and has been since we embraced multiculturism.

Polygamy is common in most of the Arab world and in many parts of Africa.   When we started to receive migrants from those areas it became the custom to ignore the fact that some people had more than one wife. Provided the union happened overseas we ignored the departure from local custom, but banned any new multi marriages here in this country.

Perhaps we should look at this whole question in a broader context.  Until recently homosexuality was illegal in many parts of Australia and practising gays were hounded and prosecuted.   Gradually the cohabitation of same sex couples living together got grudging acceptance - and now there is pressure for the final step - to recognise the union as a legal marriage - the same as is applied to " straight "couples.

What it really comes down to is that dreaded subject of - sex !

The churches have long been uncomfortable with the sex act. They vigorously demand that it not exist outside of marriage - and  some churches forbid it for pleasure and insist it should only take place for procreation.
The sticking point is sex between same sex couples, and here we have the moral dilemma.

Some churches now condone gay priests or ministers - provided they remain celibate.  There is no complaint against companionship and friendship between same sex couples - provided they do not indulge in that dreaded subject - the sexual act.

The same voodoo curse attaches to those who have more than one wife.  Society goes into a frenzy the moment they think of a man having sex with more than one woman.

So - we have the extraordinary situation that in this country thousands of same sex couples live openly together - and are not having their bedrooms raided by the sex police - and many migrant families exist with a plurality of females - and we continue to ignore this - provided they refrain from wanting a marriage certificate to formalise the union.

It seems inevitable that eventually this last bastion will fall.   It has in other places - and yet the sex bogey seems so deeply implanted in our psyche that we may never be comfortable with taking sex seriously as part of life without severe inhibitions.

And the crazy thing is sex is the driving force that motivates our entire commercial world !

Wednesday, 24 August 2011

Insensitive !

The rank and file workers about to be retrenched at BlueScope Steel will be stunned to learn that the company's chief executives will be awarded lavish bonuses at the same time as their pay packets cease.   To say the least - this is an insensitively timed announcement !

Chief Executive Paul O'Malley will receive a $ 720,000 bonus - in addition to his $ 1.7 million annual salary - and the man he replaced - Noel Cornish will get $ 255,000 in addition to his $ 770,000 annual stipend.

It seems that these payments are in recognition of the work they have done to cut costs within the steel making process - and which have reduced the one billion dollar loss from a figure that might have totally and permanently ended steel production in Australia.

Newspaper analysts and union leaders seem to suggest that these men have " given themselves " bonuses, but obviously this is a hysterical response.   Payments of that nature originate - and are granted - by the board of directors of the company.   It just seems that this board has a lousy sense of timing !

The subject of bonuses hits a raw nerve with most people because it is associated with Wall street - and the financial crash of 08 that saw people default on mortgages and lose their homes, superannuation nest eggs shrink before their eyes - and the world economy take a dive from which it still has not recovered.

The movers and shakers within the banks were bailed out with public money - and promptly awarded  lavish bonuses to the very people who sliced and diced worthless paper to make paper profits for themselves, and led naive investors into a financial trap that decimated fortunes.

Unfortunately, the timing of this announcement will most likely turn stoic acceptance of this job downturn into ugly resentment - and make it harder to marshall the effort the remaining work force will need to turn around steel's fortunes and grab a survival share of the domestic steel market.

Another of those events that could have been handled in a better manner !

Tuesday, 23 August 2011

A courageous decision !

Yesterday, BlueScope Steel made a courageous decision to scale back steelmaking in Wollongong and abandon exporting..   This year the company made a loss of over a billion dollars and the decision could have been to close the plant.  Even so - the future is uncertain and there will be dire consequences for the former employees, the host of contracting companies that served the industry - and the city of Wollongong generally.

Eight hundred BlueScope jobs will go directly and there will be an unknown cut back in the ranks of contracting firms - probably a thousand jobs altogether in the Illawarra.   The company will close the number six blast furnace, number four coke battery, number three oxygen furnace and number one slab caster.  Steel production will be reduced to about 2.6 million tonnes a year.

BlueScope Steel will now concentrate on keeping it's share of the Australian domestic steel market, and the government will need to be very careful in monitoring the price of Chinese and Indian steel landing in this country.  They will have an incentive to dump their product below cost to try and finish off Australian steel production - and this must not be allowed to happen.

Success for BlueScope Steel depends heavily on the exchange rate of the Australian dollar - and it would be a very wise person who could claim success in predicting what that will be in the future.  Hopefully, the dice may roll in BlueScopes favour, but there is also the chance that steel will never again be a profitable product to manufacture in this country.

In the short term, life looks bleak for those retrenched employees.   They will lengthen the dole queue and many will have to seek work outside this region - and then there will be the flowon to business generally.  It is inevitable that the rest of the community will close their purse strings in anticipation of bad times, and that may finish off a whole lot of marginal businesses hovering on the edge of profitability.

The shock wave will probably send the Keira street shopping centre extension plan back to the drawing boards - and a lot of other improvement and extension plans in this city will go on hold - until the outcome of the BlueScope retraction becomes clearer.

The government has promised financial help for the Illawarra - and it is not all gloom and doom.   We should remember the cries of disaster decades ago when steelmaking ceased in Newcastle, but it would also be a mood lifter to look at that city now.

The best thing the Federal government could do to provide a long term fix would be to go ahead with the Maldon Dombarton rail line to give the Illawarra a fast and commuter traffic free rail link to western Sydney.
The future of Wollongong hinges on the industry that will surround the expansion of Port Kembla - and that can not happen unless the sclerotic road/rail system is dragged into the twenty-first century.

Monday, 22 August 2011

" Tick and Flick ! "

The government has long urged bank customers to shop around and change banks to avoid repressive trading conditions and " fee gouging ".    Unfortunately the arduous task of changing all those automatic debit and credit arrangements daunted many from taking this advice.

From July, 2012 all that will be needed it a simple tick and a signature - and all this will be automatically transferred to the new financial institution.   For the first time, customers will have the upper hand when they disagree with their server's policies - and the power to do something about it without the huge hassle that exists at present.

But - there is another industry that is using the same tactics to prevent customers escaping their clutches !

Providers of telephone and internet services are locked in price battles and huge savings can be made by accepting competitive offers - provided you don't mind the hassle that will be involved in advising others of your new email address - and getting the commercial world to make that change.

Similar to the banks, many people have their bills come via the internet rather than delivered by the postal services, and they are on the mailing list for information providers, shopping newsletters and for the forwarding of health, political and news information.

It is amazing how many of these otherwise very efficient organisations don't seem to read inward emails - and certainly are extremely slow to act on new address information.    Once you change your server - this information flow stops, and restarting it can be a long and tedious process.

It would be helpful if the same arrangement that will soon apply to the banks was applied to internet services.   Just as internet supply changes, so should all the previous arrangements be automatically shifted to the new supplier.

Obviously this will never be volunteered by the internet industry because it now serves as a deterrent to stop people changing supplier - but this same legislation that will apply to the banks would be welcome if it was extended to communications.

Sunday, 21 August 2011

The " Quick Profit " trap !

Making money by improving the look of the average home has long been the way ahead for the do-it-yourself crowd.    That was fine so long as the renovations consisted of a lick of fresh paint, tasteful new curtains and giving both the exterior and interior a " fresh look " to attract buyers.

The television industry is presently investing heavily in slickly presented " renovation " shows.  These are big budget productions that have groups of people competing against one another to transform the unappealing into a highly priced selling sensation - and on these shows it looks easy.

The Block - The Renovators - and Top Design show enthusiastic amateurs knocking out walls, creating roof extensions and doing all manner of things that would usually be the domain of competent tradespeople - and it is made to look so simple that it could be done by the unskilled !

Beware !    It is so easy to bite off more than you can comfortably chew !

For a start, in New South Wales you will need an owner/builder permit if the value of the work exceeds $ 5000.   Plumbing and electrical renovations must be carried out by licensed tradespeople - and it is a recipe for disaster if you start knocking out walls without knowing which are load bearing - and you end up having the roof fall in.

It is also so easy to end up with the reverse of what you hope for.   So many renovation ideas are great in theory - and awful in practice.    Many a renovator has found that at the end of the job the value of the home has actually sharply decreased - because what has been achieve is not to the taste of the buyers.

There certainly is money to be made in renovating unappealing homes, but first it is wise to do your homework and get useful advice from a professional before you start the work - and to make sure that the project is not beyond your skill capacity !

Saturday, 20 August 2011

Identification - and the law !

New South Wales has now passed a new law that requires any person requested by the police to remove a Burqa, Niqab, mask or helmet for the purpose of identification - to do so or face arrest and a fine.  In ordinary circumstances that fine may be $ 220, but where a motorist is involved it could increase to $ 5500 - and include up to a year in gaol.

This legal action was sparked by a farcical situation where a woman wearing a religious veil was pulled over for a driving offence - and refused to identify herself.   She later claimed the police officer physically ripped this veil off her face - but she came undone when the camera in the police car recorded the entire event - and proved conclusively that she lied.    She was charged with wilfully making a false statement and sentenced to six months gaol - but this failed because she was again wearing that veil when she made the false accusation - and it therefore could not be proved that she was the offender.

This legislation seems a knee jerk reaction, but the subject of identification goes much deeper.

This law only applies to the need of the police to be aware of the precise identity of the person they are interviewing.  Surely that need also applies to a person establishing a bank account, making a will - or carrying out a host of legal obligations that involve money.

Laundering money invokes penalties and a successful prosecution requires the offender to be accurately identified.    How easy would it be to create a forged will if the person issuing that instruction could not be clearly identified - because his or her face was masked by a veil ?

Even the humble motorist involved in a minor " fender bender " should have the right to not only exchange driving license details, but to also have the ability to identify the other party in court if the matter failed amicable resolution.

Basically - it comes down to the right of any person to demand to know precisely who they are dealing with - and that includes seeing that persons face.   It is already an offence to hide one's face when carrying out a criminal act - and an unmasked face is an offer of good faith.

The only objections seem to come from religions, and yet the vast majority of people following those religions see no obstacle to removing face coverings when requested.   The outcry seems to come from the fanatical few - who need to be reminded that obeying the law is a requirement for enjoying the benefits of living in this country.

Friday, 19 August 2011

Politics - and war medals !

Forty-five years ago - in 1966 - one hundred and eighty soldiers of 6-RAR were patrolling in a rubber plantation in Vietnam when they encountered an estimated force of two thousand five hundred Vietcong - and this developed into a fire fight.

When the action ended eighteen Australians were dead and enemy losses were in the hundreds.  It was a classical victory.  In any other war, this would be celebrated in similar fashion to the victory over Rommel and his Africa corps in the western desert of Africa, or the long siege when Tobruk was held against impossible odds by " the Rats of Tobruk ".

But - this was a politically unpopular war and hence this spectacular military feat was consigned to the back pages of the history books - to be ignored  and hopefully forgotten.

Over the years governments of both political persuasions have deemed it expedient to allow this victory to go unrewarded.     Medals to those who fought in the battle of Long Tan were denied and all references to the action downgraded - until now.

Finally, 6-RAR has been awarded a " Citation for Gallantry " medal and there has been other recognition for individual bravery.   It is long overdue- and the ageing men who served in that action have now been recognised.

It seems to be a fact of life that the armed forces have no say in events in which they are deployed by the government of the day, but politics plays a big part in whether they will be welcomed home as heroes - or shunned because the war has become politically unpopular.

At least the right thing has eventually been done - even if it is forty-five years late !

Thursday, 18 August 2011

The " Social networking " question !

In the aftermath of the the British street riots two young men - 20 and 22 years old - have been charged and each given four year gaol sentences for using social networking to incite others to riot.
Neither actually took part in the riots, and yet their terms of imprisonment are longer than that of any of the actual perpetrators.

The offence with which they were charged was " encourage another to assist the commission of an indictable offence ".

It seems inevitable that governments in many countries are going to consider shutting down social networking sites such as " Facebook " and " Twitter " the moment civil unrest seems likely to get out of hand.   This is already happening in the Arab world, where demonstrating mobs are using civil disobedience to try and unseat tyrannical governments.

The question is - "  Can  communication of ideas be legitimately a target of closure to prevent public disorder ? "

The civil liberties people will give that an emphatic " No " !    It would be a short step further to take control of the content broadcast on television news - or the news printed in newspapers - as is the norm in totalitarian regimes overseas.    Half a century ago the Soviet Union constructed jamming stations along it's borders to prevent citizens having access to news from the rest of the world.    There is always a great temptation for governments to control precisely what their citizens hear and read.

But - at the same time - those who use social networking must realise that there are consequences if it is used for evil.    Just as journalists are subject to libel laws and can be brought before the courts to account for their views, those who willfully urge others to break the law on social networking sites are subject to the laws of their country of residence.

It is a misconception that what is printed on the net hides behind a veil and can not be traced.   Cyber space is not without foot prints - and when someone sits at a keyboard they can expect whatever they type to come back to haunt them.

Britain's sad events will throw the spotlight on social networking, but the gaoling of these two men simply proves that the correct checks and balances are already in place !

Wednesday, 17 August 2011

That feeling of depression !

Who can blame the average person for feeling depressed ?   Turn on the television news - or pick up the morning newspaper and all we see is an unrelenting diatribe of doom and gloom !

BlueScope steel is talking about shutting the number six blast furnace and retrenching a thousand jobs.  OneSteel is thinking of reducing production and shedding four hundred jobs.   The SPC Ardmona plant at Shepparton in Victoria is to close it's doors and cease production, sending one hundrd and fifty workers to the dole office.   Now Qantas is looking to restructure and take it's main operation to Asia - where it will start a new premium airline that will not bear the iconic Qantas name - and Westpac is cutting costs by out sourcing backroom jobs from Australia to Asia.     Then - to cap it all off - the Federal government is making evasive noises on that promise to bring the budget into surplus by 2012/13.   The " promise " has been downgraded to " an objective " !

It all seems to hinge on the relationship between the $A and the $ US  - and two factors far beyond our control will determine how that scenario plays out !

The Australian dollar is presently trading at about $ 1.04 against the US Dollar - and some economists fear that in the months ahead that gap may widen to as much as $ 1.25.    If that happens, it will deal a death blow to our remaining Australian exports - and further crimp the tourist industry on which so much of our economy rides.

This rising Australian dollar reflects a comparison with the grim tidings in the United States, where Congress has shown itself incapable of making the hard decisions necessary to reign in debt and stabilise the balance between income and outgoings.

Then there is Europe !     The pessimists see no hope of the European Union fighting it's way out of insolvency - and if the Euro crashes the European states will probably degenerate into a dog eat dog scramble of national currencies - overwhelmingly dominated by Germany and France.

That leaves the broad sweep of Asia - with super power China cashed up and fast developing a military might with unknown intentions.

The future looks grim, but at least this country has the ability to feed itself - and most of the rest of the world - because we are primarily an agrarian state with a huge, as yet untapped potential for further food production.

Perhaps we are " the lucky country " for more than one reason.   Tucked out of the way " down under " - well clear of the coming zones of conflict in the more populous parts of this crazy world !

Tuesday, 16 August 2011

Divided loyalties !

Just as the residents of Wollongong and Shellharbour prepare to go to the polls to elect new councils, the affairs of neighbouring council - Kiama - spin into turmoil because one if it's elected councillors is suggesting he will retain office - but represent his council from another country.

It seems that Deputy Mayor Ben van der Wijngaart has had the good luck to snare a plum job - in New Zealand, and he proposes to retain his seat on Kiama council - and continue to represent his supporters on a long distance basis.    He promises that he will fly to Australia each month and spend an entire week here - thus being available to ratepayers and keeping in touch with matters before council.

Legally, there seems no reason to prevent such an arrangement , but it is hardly in the spirit  which requires councillors to be both available and have presence in the community they represent - and it does introduce a division of loyalties - which is troubling.

If some ratepayers are questioning the ability of their deputy mayor to adequately  undertake his council duties, does this split responsibility and shared time do justice to the new job he is accepting in the commercial world ?

Clover Moore is criticised for holding both a seat in parliament and the job as Mayor of Sydney council - but at least she lives in the same country - and indeed the same city.

There is no present obligation - morally or legally - for an elected person to live within the area they represent, and maybe it is time that was brought into focus.   To allow this intended scenario to proceed is to make a mockery of the obligations that go with holding office !



Monday, 15 August 2011

A double whammy !

Residents of the Surfrider Caravan park at Barrack Point must wonder what they have done to offend the Gods of finance and bring down the wrath of nature's fury !

In March this area of Wollongong suffered exceptional rain and 173 of the park's 180 home sites were inundated.  Most lost all of their possessions and the insurance industry ducked and weaved to avoid paying out by invoking the " act of God " clause.    Then they found that access to public distress funds was denied - because those who had elected to insure were automatically excluded from such payments.

Finally - after weeks of sleeping in wet vans and cooking on open fires a degree of normalcy was achieved - until Shellharbour council decided to change the rules !

Surfrider Caravan park was home to permanent residents.  They paid rent for their site and this was an asset that could be sold or passed on as inheritance when they died - and as such it was a most valued asset for those of modest means.

Council now wants to change the park from permanent residency to a holiday park restricted to short stay or weekend only hire.  If this proceeds, the values will drop sharply and it will become almost impossible to recover the money already invested in on-site homes.

The park management also sees problems.   Holiday hire is seasonal and subject to weather and economic conditions.    Permanent residency results in a predictable income budget - and therefore a well defined works programme to keep the park a pleasant place for residents.

After months of uncertainty and extreme hardship, what was a settled living regimen for those of limited means looks like being turned upside down.   Tenure will be retained for those already in residence, but selling out will result in a loss and what was a family asset will no longer have value.

Just one more instance of the instability faced by those who rent - as opposed to those who have a piece of paper called " a deed "  to protect the property on which their home rests.

And the hard part is that the fortunes of nearly two hundred people can be changed overnight - by the mere stroke of a pen on paper !

Sunday, 14 August 2011

Teenage crime wave !

The purpose of the courts is to dispense justice, but there seems to be a difference of opinion as to exactly how " justice " is described.

There is a total lack of uniformity in court action when a persons age comes into the equation.  Once that magic " eighteen years " is reached the offender is treated as a criminal.  Below that - lesser penalties apply - and below ten years the perpetrator is deemed to " not know the difference between right and wrong ".

In a case before the Sydney courts the public will be horrified to learn the risk they face daily as a result of this policy.

A fifteen year old boy has faced a magistrate charged with driving a stolen car at 140 kph over the Anzac bridge, ramming a police car in his efforts to escape.  He has been a career criminal since the age of eleven, and his record shows that he has been charged on forty-eight occasions since eleven and fifteen.  In every case he has been granted bail - and in thirty two instances he failed to appear in court and was subsequently re-arrested.   No curfews or other conditions of bail were ever met.

The speciality of this boy is car stealing - and then driving at high speed for the thrill of police pursuits.  The police comment that it is inevitable that eventually he will kill either himself, a member of the public - or a police officer.

Once again, he was granted bail !

The parliament passed " Skye's Law " after a child was killed by a driver trying to out-run the police in a chase, but this is not being applied to juvenile drivers.    What is the difference between being killed by a thirty year old - or a fifteen year old ?      The victim is just as " dead " !

It is time to re-think our attitude to crime that puts other people at risk of violent death - irrespective of the age of the perpetrator.     By all means treat a juvenile shop lifter differently if there is a good chance of rehabilitation - but surely those who have past the point of no return and can be considered a teenage crime wave need to be taken out of circulation - and the cycle of risk broken in favour of the safety of innocent people.

No doubt the civil liberties people will scream blue murder - but the public has had enough of teenage thugs thumbing their noses at the law - and  creating mayhem on our streets.

Taking them out of circulation will ensure that they - and others - live longer !

Saturday, 13 August 2011

Coverup !

This week an accident at a chemical plant resulted in seventy homes and a child care centre becoming contaminated with a deadly poison - and there was a three day delay before the public was notified.

The Orica plant on Kooragang Island in Newcastle makes ammonium nitrate, a fertiliser that is also the base for many types of explosives.   Something went wrong and the gas hexavalent chromium was released and drifted over the nearby suburb of Stockton, contaminating about seventy homes - and a child care centre.

Almost unbelievably, the plant kept silent - and when it finally told the state government - no advice was forthcoming for a full three days, and during that time the child care centre stayed open and it's children were exposed to the danger.

Hexavalent chromium has an unsavoury history in the United States.  Crusader Erin Brockovich brought the poisoning of a wide area to public notice, resulting in reform - and this was later made into a big ticket feature film.    The public world wide is sensitive to gas leaks from chemical plants after the mass carnage in India when a Union Carbide plant accident released a gas in Bhopal, India which killed thousands of sleeping residents in an adjoining suburb.

That three day delay is simply not good enough !

We need a law change - if that is what it takes - to automatically impose such a draconian penalty on any plant that tries to coverup a potentially life threatening industrial accident that even thinking of such a course of action is impossible.

Barry O'Farrell needs to put the cleaners through his own new government and make it clear that any attempt to avoid political damage by not immediately taking action on industrial accidents that may harm the public will result in the relevant minister losing his or her portfolio - and being consigned to the back bench.

It is still not clear exactly what damage has been done in this Newcastle incident, but residents of Stockton have a legitimate reason to worry - and the parents of those children affected have every reason  to expect a higher level of integrity from the plant management - and from the responsible minister.

A  disaster like Bhopal must never happen in Australia - ever !

Friday, 12 August 2011

Deception unlimited !

It seems rather deceitful that the Labor party is running two slates of candidates at the Shellharbour council election - one under the Labor banner and the other as supposed " independents ".

It is a ploy to garner the votes of the party faithful - who are the rusted on adherents who simply ignore the fact that the party is on the nose because of disgraceful past behaviour - and at the same time present the alternative of Labor in disguise to attract the votes of those who have not forgiven the party for it's sins.

The official Labor ticket is headed by MP Marianne Saliba.   The alternative was to be called " Community Labor ", but this was dropped in favour of " Community First " to remove any connection with that tainted brand - and it is headed by former Labor candidate for elected office - David Boyle.

It seems  Labor hopes that by a combination of elected members from both slates it may creep over the line and be able to again caucus - and control the newly elected body.

When the voters are handed their ballot papers there will be a lot of carefully crafted  deceit at this election.

The word "independent " seems to cover a lot of ground - and there are many people with well known Green agendas who would rather not be identified as belonging to that party because of it's activism on unpopular issues.

When voters put their mark in a square they will not be sure that the candidate's party description - or lack of description - is what they are actually getting.    It could be the wise course to ignore all those well known  names - and settle for someone you have never heard of !

Thursday, 11 August 2011

Fanatics - and their tactics !

There is an old adage that applies to presenting a case to the public.   "  Don't let the truth get in the way of a good story ! "

A Senator claims to have a statutory declaration that the celebrated video footage of animal cruelty in an Indonesian abattoir was a set-up.   Money was paid to abattoir workers to abuse the animals under their control to create the sensational scenes that  brought this $ 220 million industry to it's knees.

Live exports have resumed - and Animals Australia - the organization probing the treatment of animals in the export trade is adamant that it has no knowledge of any money paid to embellish the video, and the Senator accepts this assurance.

Unfortunately there are fanatics in all walks of life who adhere to the credo that "the end justifies the means ".

Honest, well meaning organizations can be infiltrated by those who are determined to bring about the result they desire - and who are prepared to employ subversive tactics to achieve that result.

We have seen this in the newspaper industry in Britain, where phone hacking was used to create " scoops " to advance careers.  We see it often in politics, where mock outrage about a story released from an un-named source is designed to create public appeal - and even in the serious business of waging war.

In many parts of the world people are dead because one side claims to be putting down a terrorist uprising - and the other side if merely trying to achieve a better life by unseating a tyrant.

Hopefully, the truth will eventually emerge from this Indonesian abattoir claim, but the sad fact is that Indonesian integrity has been questioned - and in northern Australia a lot of road trains and ships designed to transport stock have been idled.    Ordinary men and women have lost wages and whole communities have been  dealt a severe financial blow - and it is possible that all this is the result of a blatant lie !



Wednesday, 10 August 2011

Death of an industry !

It seems ironic that because the Australian economy is doing a lot better than the rest of the world - the rising Australian dollar will be responsible for the closure of an iconic fruit processing plant in Victoria's north - with the loss of one hundred and fifty jobs.

SPC Ardmona - near Shepparton - is owned by Coca Cola Amatil ( CCA ) and has lost market share because the rise of the Australian dollar has enabled imported packaged fruit and vegetables to flood into the country - and made our exports dearer for overseas customers.

This same rising dollar enables Australians to take cheap overseas holidays - to the detriment of our own tourist industry, and now a basic industry is being destroyed by our very financial success.

The crazy thing is that a lot of our industries do much better when the Australian dollar trades at about 70 c to 75 c against the US dollar.    Our exports are cheaper in overseas markets and overseas tourists pay less money to holiday in Australia.

Unfortunately the closure of SPC Ardmona will have long term effects.   The value of our dollar is a constant roller coaster.  Further down the track it's value will change and again favour exports - but once SPC Ardmona closes it's doors - it is gone forever !

A big Victorian country town will have an unemployment problem and that will not be confined to the plant's workforce.  Without a processing plant there will be a likely drop in the production of fruit and vegetables that flowed along the production chain - and that means difficult times for the shops, traders, pubs and entertainment venues in Shepparton.

And we live in a world where millions are near starvation in the horn of Africa - and science is warning of a coming world famine.

No wonder many people think we live in a  mad - mad - mad world !

Tuesday, 9 August 2011

The need for speed !

The much hyped " Malaysian deal " to stop the boats is fast heading to failure.  To have any hope of success it needed to be announced and implemented fast - to deliver shock tactics to the people smugglers and prove that the Australian government was serious.

That simply didn't happen.   It became a long drawn out affair when there was a delay in negotiating the terms of the scheme - and bringing it to the signature stage.  At the same time, there was public disquiet that we were agreeing to take four thousand Malaysian based refugees in exchange for just eight hundred of our boat people.

Now the High court has placed an injunction to stop the process for two weeks while legal issues are determined on the legality of the scheme - and there is every chance that a flurry of additional applications to the court will delay movement indefinitely.

The people smugglers can smell victory and it seems that they are having no trouble convincing asylum seekers to pay the money and take the boat trip.   Because this Malaysian deal has a limit of just eight hundred people we will soon have that number in the system waiting for a High court decision - and by then the Malaysian authorities will be becoming alarmed and wanting to back away from the deal - and certainly becoming unwilling to extend it further.

This was a good plan - but high on risk.    Because of the need to appease the Greens and the strident opposition of the coalition there never was any hope of a fast and smooth transition from plan to  action - and that was the key to success.

We can safely consider the Malaysian plan dead in the water !     Time to turn to plan B !

Monday, 8 August 2011

The final assault !

The family home has long been the financial refuge for those who have scrimped and saved to own the roof over their own heads.   It has had a protected status when means testing was introduced to limit the aged pension to what the government termed " the needy ".

Now the Federal  government has started the " softening up " process to convince home owners that their wish to " leave something for the children to inherit " must be abandoned in favour of providing them with " a safe and comfortable " retirement.

We are about to see a blow out in the number of aged people because better health care has extended our life spans.   This will require more aged care facilities - and the money is not there to provide this facility. We can expect the ratio of younger working people paying taxes to decline as the number of retired people living in care facilities increases.

The answer - as the " bean counters " insist - is to use the money tied up in family homes to be converted into a fund to provide aged care.   To get a bed in a future aged care facility the home owner will be required to sell the family home and invest the equity so gained in some sort of government bond - from which the cost of that aged care will be steadily drawn.

It is a form of " death tax " which will please the Greens, who have in their platform the re-installation of a death tax to implement their social engineering platform.

What will worry most people is the prospect of any form of government managing the money gained from the sale of their home in a prudent and careful manner.    We have seen the outcome of various government schemes by both sides of politics over the years - and the one conclusion gained is that the government is not capable of managing money without waste, bad planning - and eventual corruption.

We will retain fond memories of the days when owning a home was financial security - for life.

But - that was then !      And this is now !

Sunday, 7 August 2011

Financial apartheid !

It started in northern Australia when concern was expressed that some alcoholic families were depriving their children of food and other basics by spending all their welfare money on alcohol.  A scheme was introduced to " segregate " a portion of each welfare cheque so that it could only be spent on basics.   Now that concept is to be extended into the general community.

Starting in July next year and running for a five year trial Centrelink staff will be able to nominate " financially vulnerable " people to be put on an " intervention list. "

Basically, the government through Centrelink will dictate how these people can spend their money.  They will be issued with a " Basic's card " - which is essentially an EFTPOS card which will control somewhere between fifty and seventy percent of their welfare payments - and which can only be spent on nominated and approved items.

To make this work, they can only use this Basics card at nominated retailers - and that list includes Big W, K Mart, Target, Caltex/Woolworths, Coles, Target and Woolworths.   Smaller stores are excluded because the government fears that prohibited items could be supplied on a " nod and a wink " basis to overcome the embargoes.

Unfortunately along with the good side - there is a very obvious bad side to this arrangement.  The list of prohibited purchases includes alcohol, cigarettes, and gambling items - and as the scheme develops you can be sure that the list will grow longer.   To accommodate that, the nominated outlets will need to herd basics card users through a special check-out, staffed by a member who is familiar with permitted and banned items.

There is a very real danger that this form of " financial apartheid " will lead to social discrimination.

No doubt the civil liberties people will have a lot to say before it is introduced, and that will include what criteria  Centrelink staff will use in selecting " financially vulnerable " people - and what review mechanism will be in place to allow such selection to be challenged.

A lot of reasonable people will have misgivings about putting such power in the hands of government employees.    George Orwell's " 1984 " has been and gone - and yet " Big Brother " is still hovering in the wings when the government steps in to tell people how they can spend their own money.

That old adage that "power corrupts - and absolute power corrupts absolutely " - comes to mind !

Saturday, 6 August 2011

Nothing to fear - but fear !

Yesterday nervous investors wiped sixty billion dollars off the value of the Australian share market, and that was simply " petty cash " compared with the loss in the rest of the world.

The crazy thing is that there was no evident and compelling reason for the sell off.  

Sure, we know that the United States of America is broke.  But the warring political parties had just brokered a bad deal to lift the debt ceiling and there is every indication that their economy will stagger on for at least a few more years.

And the Euro zone is a basket case - but it was no worse yesterday than the day before, and in fact the stronger economies seem quite happy to throw good money after bad to bail-out hopeless regimes that can never hope to repay even a fraction of what they owe.

So - why the panic to sell - sell - sell  ?

It seems that we have learned nothing from the disaster of 1929, and as some wise man once said :  " Those that fail to learn from history are destined to repeat history ".

So - have a good weekend, because it may just be the last weekend before the money you have invested in retirement funds and  blue chip shares fades to zero - and within a few days your boss hands out a pink slip because the firm is closing down.

It all depends if yesterday was one of those senseless aberrations and the market comes to it's senses and corrects itself, or if panic takes hold and the bottom falls out when trading starts on Monday - and fall away into a bottomless pit.

And if it does that - it will be because the same group panic that threw the world into chaos in 1929 is having an encore - and without good reason group insanity has taken hold !

Friday, 5 August 2011

The ever increasing learning curve !

The bottom rung of the education ladder has just been abolished.  This is the last year that the " School Certificate " will be issued to those completing year ten.  Some used it as an " exit point " to leave school with a piece of paper in hand, and in 2008 this amounted to 18% of students.   As a consequence, last year the school leaving age was raised to 17.

The education authorities are now concentrating on retaining students to achieve their Higher School Certificate ( HSC ) and the world of paid employment is rapidly making that the entry point to most careers.

Two of the most popular professions for girls - teaching and nursing - are now closed to those who do not enter via a university course.   The days of a short course of introductory lectures, followed by years of " on the job " training are now a thing of the past.

Fronting a job interview without that all important HSC is  a lost cause for the unqualified.  That old standby for the less academically gifted - an apprenticeship - also tends to favour those with a HSC.   The educators do have a point when they urge kids to stick it out and make the effort to gain an award that will open career doors that would otherwise stay firmly shut.

But - those same educators have a duty to provide some sort of alternative training for those not academically gifted - who will never have a hope of successfully achieving their HSC - but who are capable of performing a valuable place in the workforce.

At present, education seems to turn it's back on those who leave after year 10.   They are written off to become dole bludgers, criminals or to drift from infrequent  labouring jobs to welfare.

There are jobs that do not need higher education and some of them are in desperate short supply of  applicants in this mining boom.   The problem is that the people who could fill them can not get the training to qualify.

Both the government service and private bus companies are crying out for drivers.   The trucking industry is ever expanding, and there is a need for people to drive all sorts of machinery from fork life trucks to underground mining transport.

A kid leaving school at year ten has no money to pay for driver training - and the education system is not equipped to use these skills to create an employable person.   By all means encourage students to stay and achieve their HSC, but it is also time to have a rethink about better training for those who fall through the cracks - and tailoring training to the job market that is crying out for people !

Thursday, 4 August 2011

A new crime twist !

Kidnapping was always high on the list of extortion scenarios when it came to extracting money from wealthy families, but it seems that criminals also are avid watchers of crime shows on TV.  Yesterday we had a new twist to extortion when a bandit walked into a home in a wealthy north shore suburb and attached a bomb to the body of a business mans eighteen year old daughter.

This investigation is still being played out and the final outcome is yet to be revealed, but we have the bomb squad in attendance and obviously great care must be taken to remove this explosive device without it exploding and killing the victim.

Just about every long running crime show on TV has used this form of crime scenario at some time or other. The only mystery is why this has not been used in reality crime more often.   The danger is that now it has created such high attention on the TV news it will draw the attention of copycat criminals.

It could become the prime nightmare of every wealthy family in this country.  The prospect of a technically brilliant criminal attaching a booby trapped bomb to the neck of a loved one - and threatening to activate it by remote control unless money is paid could become real.

The trouble with scientific advancement is that it not only brings benefits to us all, but it also bestows new crime opportunities to the criminal fraternity.

No doubt that the  public - and the criminal classes - will follow this ongoing crime in Sydney with interest !

Wednesday, 3 August 2011

A bold plan !

The University of Wollongong is certainly thinking well outside the nine dots when it comes to student accommodation.   Acquisition of the 150 room Ibis hotel in the heart of Wollongong joins the 84 room Keiraview hotel and inclusion of 25 rooms at Rydges hotel in providing much needed live-in accommodation for students - and there are plans for a 350 bed development at Gwynville.

The University of Wollongong is a " smart " university that has won numerous awards for innovative thinking. It's planners are tackling problems that other universities have consigned to " the too hard basket " - and taking a broader view of how a well managed university and it's huge number of students can help develop and be an asset to it's host city.

A prime example is the plan to house students in the CBD to create a more vibrant city centre which would do much to bring the city to life at night.   At present, the Mall simply " dies " when the shops turn off their lights and close their doors because few actually live there - and that is about to change.

We already have a free Shuttle bus serving the transport needs of the city and this services the university. It will become a vital part of moving students from their place of living to their place of learning - and their return when the university day is over.

The management of our university have accepted the challenge to expand university services to provide everything a young person needs to gain a higher education.   Not only will this see the university expand - it will also do it in lock step with this city of Wollongong.

The future looks bright in the field of education !

Tuesday, 2 August 2011

We come full circle - again !

Over a year ago the emergency department at Wollongong hospital was in crisis.  At times this  city's entire ambulance fleet was sitting in the hospital car park with patients that could not be off-loaded because no beds were available.

Money materialised to increase the number of treatment bays and it seemed that reason had prevailed - and that the problem was solved.   Now it seems that this is not so.

Once again we have this ambulance queue and we learn that ambulances had to be drafted in from the Shoalhaven to try and spread the load.   The safety of patients requiring the fast dispatch of an ambulance is at risk because the trained personnel who could save a life are acting as nursemaids to other patients in the hospital car park.

It seems that the health people found a very reasonable solution to this overload problem - but only put it into practice in Sydney and Newcastle.    As usual, Wollongong is the poor relation that misses out whenever new innovative practices are devised.

It was also a very simple idea.   Off duty ambulance officers were drafted to form crisis teams who could be quickly deployed when an ambulance bottleneck was looming at the hospital.    These fully trained people took over patient care and waited until the triage people took over their patient - freeing the ambulance and it's crew to attend other emergencies.

Of course these off duty people expect to be paid - and that seems to be the stumbling block.

Patients in Wollongong have every right to think that the health department sees them as second class citizens if the standard of care offered is lower than that provided in Sydney and Newcastle.

Time to prove the theory that the squeaky wheel  gets oil !

Monday, 1 August 2011

A message from Oslo !

Mass murderer Anders Behring Breivik had no intention of killing until he was killed, which is the usual  format for terrorist strikes.    He was quick to drop his weapons and raise his hands in surrender immediately armed police appeared.   The killings were simply part of his plan to promote a Christian jihad in Norway and he relished the coming theatre of using court appearances to sell his message.

The police investigation now underway is examining how he managed to create a bomb powerful enough to wreck the centre of the city of Oslo, and how that and the other material necessary to conduct the killings on the island of Utoya can be prevented in future.

Clearly, that would be almost impossible to stop provided the attack was planned and put in place over a period of time - as was the case with Breivik.

Nothing in his preparations broke any laws or threw the spotlight on his activities.   He acquired a farm and worked it to legitimately be able to buy fertilizer, the main ingredient of his bomb.   He shopped from many sources in several countries on the net to acquire items that caused no alarm to the sellers - and he joined a pistol club to mask his acquisition of firearms.

The only blessing is that this required long and careful planning and anyone suffering a rush of blood and the immediate need to kill would leave markers that raised suspicion.   Hopefully, the murder spree in Oslo will make many people think long and hard when any purchase of an item that could have multiple uses comes to their attention.

It is said that there is a fine line between madness and genius.   Breivik appears to straddle that line.  He certainly exhibited unusual long term planning abilities - taking years to write his manifesto and collect the means of launching the attack.   Even the use of a bomb to distract the authorities and give him time to slaughter a large number of innocents was an example of military planning.

Perhaps the main message radiating from Oslo is that the presence of an evil genius can occur in even the most stable and peaceful countries.   Murder and bombings are commonplace in the world's hot spots.
Now we must raise the suspicion level in all the most unlikely places if we hope to prevent another
Breivik launching a reign of terror in some other community.