Innovative thinking !

On-Line shopping has been copping a bit of flak from those who see it as destroying the traditional " bricks and mortar " stores, but we live in a changing world and when new people bring innovative thinking to the way we do business they deserve credit for providing a better customer service.

The " old way " of shopping depended on shops full of goods with static price tags - until they decided to hold a " sale ", at which prices were reduced.  That was the signal to rush to the shops and buy, but this degenerated until every day seemed to be a special sale day of some sort and customers grew weary of prices that all claimed to be " reduced " !

There are many on-line offerings on the Internet, but 00.com.au has broken new ground.   Their newsletter offers are entirely special prices and most are available at that price for just a twenty-four hour period.  The range of products is huge and they offer high security when customers give details to pay for the goods purchased.   Most would agree that their prices represent good value for money.

One thing that does annoy customers is to make a purchase, only to see exactly that same item readerttised a few days later - at a lower price.   That can happen if the manufacturer drops their asking price and this saving is immediately passed on to the customers - and 'isnt that what discount selling is all about ?

00.com.au have a new policy that guarantees that if any item is readvertised at a lower price within seven days, a credit for that price difference will be added to that customers account - with no conditions other that it needs to be used within the next six months.   No if's, but's or maybe's on what can be purchased or in what price range ?

On-Line marketing is a new medium, and with that comes new thinking.   Not so many years ago the shops used to open nine to six, five days - and stay hermetically closed all weekend.   Then came weekend trading - and now on-line is offering service on a 24/7 basis.

Bricks and mortar shopping is here to stay, but so is on-line.   What makes this medium so appealing is the attention given to finding out what the customers want and need - and servicing those aspects.   Shopping is becoming a new and exciting experience !

Rights - and obligations !

In a democracy, every citizen is supposed to have equal rights under the law.  No person is above the law and justice is supposedly available to all through the courts.   Unfortunately, this admirable principle falls by the wayside at the first hurdle.

The courts are not free.  It is necessary to lodge fees before engaging in litigation and the wise will engage a lawyer skilled in the procedures to be followed.  In fact, both sides usually hire lawyers and the ensuing court action then develops into a proxy fight in which the litigants sit back and let their legal representatives duel  within the skills of their profession.      It is a fact of life that those with the most advance skills usually win - and consequently they charge the highest fees for their services.

Winning or losing a case involves another " money aspect ". - the matter of  " costs " !    The winner usually applies to the judging panel for the legal costs involved in winning the case to be paid by the losing party, and that can run into many thousands of dollars.    Doing battle in court is not a matter to be taken lightly.

A case in it's preliminary stage in a Wollongong court is testing this " justice for all " scenario.  A coal mining company has started using longwall mining equipment and a number of local citizens believes that the necessary approval for this type of equipment has not yet been granted.  These citizens have joined together under a community name and propose to have the matter tested in court.

The mining company has applied to the court to have those involved in this action provide a surety of $ 40,000 in case they lose and costs are awarded against them.   The citizen group say they can not raise this money and as a consequence - they have no option other than dropping the matter.    They can not have their day in court - because justice is out of reach for them because of the money involved.

As usual, there are two sides to this coin.  If the case was allowed to proceed and the citizens group lost, it seems improbable that they would be able to pay any court costs against them.  If the case presented by the citizens group was so implausible as to be a diversionary tactic it could be considered a ploy to damage the mining company's operations and cause intentional financial loss.   The court could be applauded for ensuring  that obligations were mutually shared.

Supporters of equal rights would see it differently.   A group of ordinary citizens being denied justice on purely financial grounds.   A wealthy mining company that could afford to hire the best lawyers demanding up front money before the case could go to court.    This would raise the question of involvement of " the public interest ".

This is the great levelling factor that comes into play whenever such a case is involved.   If the issue raised by the citizens group strikes a chord with the public one of two things will happen.   Either the public will get behind the group and make it a " public interest " case, funded by public donations, or apply political pressure to force the government to intervene and become involved - and pick up the tab for costs,

Either way, it requires a small public interest group to broaden the issue if it is to proceed further.  This is a reasonable hedge against litigation forced on the court system by a small group of zealots who are way out of step with public opinion.

Our system of courts is far from perfect, but it acts as a filter to make sure that litigation is something carefully considered by both parties before they decide to proceed.    For those involved, losing brings with it a severe financial risk !

Council " Spin " !

On Monday, a software glitch caused the parking meters in Wollongong streets to fail.   People who put in money found that the machines declined to deliver a ticket to place on view through the windscreen of their cars.   Council " spin doctors " tried to turn this into an advantage by declaring that motorists were enjoying a " free parking day ".

That was absolutely not so.   These bandit machines cheerfully accepted money - but failed to deliver the reward that motorists were paying for - and the council cheerfully collected and banked the money that people paid for no service - and the rangers were cheerfully still booking those who overstayed the time limits that applied.

It seems that council made no attempt to place an " Out of service " hood over each meter management console, which is the usual method of alerting users to a meter malfunction.   As a result, many people who made a visit to several parts of the CBD probably put money in different parking meters because they thought the problem was confined to just one console.    It would be interesting to know just how much money was spent trying to do what is legally required to park in this city.

It is also interesting to ask exactly what council did to alert the public to this malfunction.   Did council issue a news alert to local radio and TV ?

It seems that the council owes Wollongong motorists a day of free parking for the money wasted when machines gobbled their offerings because of a fault.  It would be nice if they declared next Monday a free day in lieu - and put an " Out of service " cover on the consoles to deliver that message.

That won't happen, of course.  Money collected by councils and all other forms of administration is a one way flow.   When that flow is interrupted, all those entities are only concerned if the money stream going in their direction stops.    If it is the other way around - and the public is disadvantaged, they don't want to know about that.

That is the job of the " spin doctors " !

A " Toothless " Tiger ?

The Independent Commission against Corruption ( ICAC ) was supposed to be the first line of defence against politicians rorting the public purse.  It was supposed to be equipped with the powers to delve into suspicious matters and force witnesses to tell the truth or face draconian sanctions.  There is rising public disquiet that a blatant case of profiteering while in office may be way beyond the reach of ICAC.

It seems that two members of the NSW parliament colluded while in office to create a situation that would deliver almost unimaginable riches - and that these would be at the expense of the taxpayers.  It concerned farmland in the Bylong valley - which was purchased under the names of family and friends by a backbencher who was also a powerful factions boss.   Having acquired this property for it's value as farming land, a minister of the crown granted coal mining rights - which increased it's value to the possible tune of a hundred million dollars in the new owners name.

At the very least, this is a blatant case of " insider trading ".   The coal below the farmland is owned by the people of New South Wales and by transferring a license to mine coal to an individual owner, the value of this commodity is lost to the general pool of income on which this state is run.   It was expected that ICAC would come down hard on such a shonky transaction.

Apparently - not so !    There are calls for those coal mining rights to be disallowed, but it seems that both internal and external legal advice indicates that to do so would open the state to millions of dollars of compensation.   The state government simply does not have the power to cancel licenses once given without opening the door for the new owners to take the state to court to recover the profits such a cancellation would pose.

It seems likely the bandits will get away with their loot.  It is quite possible that those involved will face some sort of charges in court, but if they are not prevented from financially gaining from this deception they will cheerfully accept whatever slap on the wrist is imposed - and walk away immensely rich - whistling " Dixie " !

It is interesting that the political party to which these people belonged turfed them out of party membership and disavowed their actions.   It will be interesting to see if both side of politics can agree in a united front to put in place laws to make sure that this never happens again.

It would be a case of closing the stable door after the horse has bolted - but when politics is involved - don't be too sure such a sensible precaution will ever happen !

The " Squeaky Wheel " concept !

For an Australian entrepreneur to set up an overseas business deal in a far country is to take a huge risk.  It all depends on which country is chosen - and what sort of " rule of law " prevails, or in some cases - whether there is any actual law in place to protect business dealings.

Our biggest business partner - China - falls into that category.   It's constitution is all sweetness and light, but when it comes to practice those having " connections " with the ruling Communist government are in a position to influence decisions favourably.   The legal system and the courts are not impartial and it is not unusual for bribes to be paid to achieve a desired outcome.

Such seems to be the case for Du Zuing, an Australian cardiac surgeon who had a two thirds share in a $ 300 million medical facility in China.   This resulted in a falling out with his Chinese partners and the doctor has spent two years in a Chinese gaol on unspecified charges - and this arrest has not been common knowledge.   It is not unusual for prisoners to simply " disappear " into the Chinese justice system and languish in gaol for years without ever making an appearance in court or be formally told of the charges against them.

Friends and relatives are pressing the Australian government to make representation in the Du Zuing case but it seems that this is going against Foreign Affairs advice.  The Chinese government is sensitive about it's dirty laundry being aired in public and some diplomats think that publicity will have a worse effect on the outcome.  In this case, the doctor has been stripped of his legal share in a high value project and there is deep suspicion that the court system is being used to prevent him bringing the matter to justice.

Foreign Affairs may be quietly working away behind the scenes, but it all depends on who is pulling the legal strings in China - and how high is their standing in the pecking order.   We would hope that Foreign Affairs is not simply balancing it's brief to maintain good relations with one of our main trading partners against the rights of an ordinary citizen - and deciding not to " rock the boat "  by dragging this case into the public domain.

Bad publicity is a constant irritant to the Chinese government and we constantly see instances where people are released and allowed to immigrate to settle issues.  In contrast, there are probably big numbers of " little people " who have fallen foul of the authorities and who languish indefinitely because a veil of secrecy cloaks the workings of the Chinese detention system.

Perhaps Foreign Affairs would be wise to ponder a truism that is said to have originated from the pen of Confucius.

" It is the squeaky wheel that first receives the oil ! "

A new " Pharaoh " presides !

When the " Arab Spring " swept through the Middle East the citizens of Egypt rose in their thousands to depose Hosni Mubarak from power.   They suffered beatings from the police and many paid the ultimate price of losing their lives as they occupied Tahrir square for endless days to demand a new Egypt.  Young men and women put their lives on the line to usher in a regime based on democracy and which would have as it's cornerstone the rule of law.    The army sided with the demonstration - and Mubarak fell from power.

Not all of those agitating for change had the same vision for the future.  A fundamentalist element desired an Egypt based on Sharia law and would settle for nothing less than an Islamic theocracy.  When elections were held, the previously outlawed Muslim Brotherhood had the organising capacity  to present it's case well - and swept into power.   It had the task of  brokering a new constitution and it succeeded in nominating one of it's own - Mohammad Morsi - as the new president.

Morsi has taken a bold step.   He has simply given himself unlimited power to rule  by decree - and he has granted himself dictatorial power by insisting that his decrees can not be challenged in the courts of law.  This seems nothing less than a coup and some are calling him the " new Pharaoh ".

Egypt is on the brink of a new beginning - and the way ahead is not clear.  It all depends on what sort of person Mohammad Morsi turns out to be.   So far, the signs are promising.
He has shown resolve and clear vision in helping to negotiate a cease fire between Israel and the hot heads in Giza.   Egypt is the only Arab country to have a peace treaty with Israel and so far Morsi is showing no signs of retreating from the mutual obligations that requires.

He will have to show his hand when it comes to the litmus test of this new constitution - and more to the point - whether he has the power to hold the Muslim Brotherhood in check and retain his position at the top of the pyramid of power.  Success will depend on achieving even handedness in fostering good relations between the two branches of Islam - Sh'ite and Sunni - and the ten percent of Egyptian citizens who are Coptic Christians.   To do that, he will have to reign in the element demanding a theocracy.

Egyptian politics will come under immense pressure from surrounding countries.  The Middle East is awash with oil money and hatreds run deep between the tribal entities that head powerful clans.  Morsi will need great wisdom to avoid being dragged into regional politics and having to choose sides between the west - and Arab nations rattling sabres and fomenting war.

The future of Egypt resides in the hands of this enigmatic Egyptian.  It all depends on how he uses the power he has seized and if he remains a statesman with the fate of his country foremost.   The books of history are littered with figures who came to power with good intentions - and later turned into monsters !

It is said that "power corrupts "  - and that " absolute power corrupts - absolutely ! "

Something Morsi would do well to remember !

Mirage becomes reality !

For thirty years the proposed " Marina " centrepiece of Shellharbour's Shell Cove development has been an " on again " - " off again " vision that has both enticed and worried those who have bought building land in anticipation of water views.    Now a construction contract has been signed and delivered.

Coastwide Civil has been awarded a $ 150 million tender to construct a boat harbour that will be slightly bigger than Sydney's famed " Darling Harbour " entertainment precinct.  It will take five to eight years to bring it to fruition, but the turning of the first sod is about to happen.

The creation of the city of Shellharbour was a natural extension of Wollongong city when the population of the Illawarra needed somewhere to grow.   Wollongong was locked in between the escarpment and the sea and the only logical building land was to it's south.   The village of Shellharbour became a town, and from there a natural progression took it to city status.    This was a new city that badly needed a focal point - and the city fathers had a vision of a vast marina serving that purpose.

It has been a long, hard slog.   Finance has always been the main limitation. The nay sayers have opposed going into debt to create the attraction that would be serviced by building expansion on it's surrounding land. It looked set to go and then the WFC hit in 2008 and that saw the plans being put back on the shelf for several years.

The Australian population seems set to expand into new dimensions during this twenty-first century.  It seems inevitable that the overflow from Sydney will see both the Illawarra and the Hunter develop to secondary metropolis status.  It seems inevitable that this new marina will become an iconic suburb with similar status and value to that of Sydney's famed eastern shoreline.

With population growth comes the need for infrastructure.   The day is fast coming when governments will be forced to act on our transport needs.   In particular, the need for a modern rail link with Sydney will become over powering.   It will cost big money to create the tunnels to achieve a high speed link but survival is not tenable using a steam age line that takes a minimum of ninety minutes to travel a mere eighty kilometres.

This marina contract is the first start in big things to come !

" Click " Frenzy debacle !

Yesterday was supposed to be the " bricks and mortar " stores answer to the shopping on-line tsunami that is reducing their profits and wooing away customers.   For twenty-four hours these stores intended to take on the on-line crowd at their own game - and offer goods at prices reduced by up to ninety percent.

It was a two pronged assault.   A big number of retailers banded together to offer reduced prices both on-line and over the counter, hoping for a sales bonanza that would combine personal shoppers visiting their stores with the stay at home crowd buying from what they were seeing on their computer screens.

Most saw it as a total debacle, but a few voices claimed sales increases from the people who rushed the bricks and mortar shops.   The biggest calamity was the sheer volume of people who came on-line at the appointed opening time - and as a result the computers crashed for several hours.   Those that persisted and eventually gained access grumbled that the huge savings promised were very much " mediocre " - and didn't live up to the hype.

Rueful retailers admit that they have a lot of work to do to upgrade their computer facilities.  It would seem evident to most computer " geeks " that this was a bright idea ruined by it's implementation by people who lacked the understanding of computers and their limitations.   When you create a surge of people constrained by a narrow time opportunity, you are surely going to overwhelm the capacity of a computer network to handle that sort of situation.

It is a case of " old style thinking " being applied to " new style marketing " opportunities.   The bricks and mortar crowd were still thinking of their Boxing day sales scenario.   Huge crowds waited breathlessly for the doors to open - and then came a stampede of customers rushing to snatch the best of the bargains and get to the cash registers.

That simply does not work in a computer situation.   Forget the huge crowd waiting for a timed access.   Go the way of a steady release of bargain items over the course of the sale time to regulate the customer flow to what the computer system can handle.   It is obviously a case of " teaching old dogs new tricks ".   If the bricks and mortar retailers are going to compete in the on-line scene, they had better become savvy about the do's and dont's of on-line merchandising.

Today, yesterday's experience must be ramming that home clearly  to those in the retail trade.  It usually takes a debacle to wake new players to reality and the next time we see the bricks and mortar people take on the on-line crowd we can expect a more disciplined and nuanced approach that will have better results.

It is clearly a case of " live and learn " to survive in the computer age !

Changing medical priorities !

The disease we fear the most is Cancer.  When it comes to donating money for medical research, Cancer tops the list, followed by heart disease.   Unfortunately, Dementia is now nearing the apex of diseases that will constrict the lifestyle and then kill an ever increasing number of Australians - and it seems set to overwhelm our capacity to provide beds in hospitals and nursing homes.

Medical statistics show that Alzheimers disease numbers are ramping up exponentially and by 2050 there will be 900,000 sufferers in Australia, three times the present number.  This is a disease that slowly gains control of a sufferers brain and reduces their ability to make day by day decisions.   They lose the control that allows them to shower, dress, prepare food and make the minor decisions of everyday living.   It has often been called " the disease of the long good-bye " because sufferers often lose their ability to recognise loved ones and exist in a state of mental oblivion until finally released by death.

There is hope that eventually we will discover a cure or possibly some sort of inoculation to prevent Dementia, but at the moment there are some promising trials under way that may slow down the onset and if that can be achieved, giving as little as four years of grace, then it would reduce Dementia numbers from 900,000 to just 400,000 by 2050.

We have the NSW/ACT Dementia Training Centre right here in Wollongong, at the University of Wollongong Innovation campus.   It suffers the usual problem of lack of funds to progress some promising innovations and we badly need to change our medical funding priorities.    This monster of a disease is set to invade it's way right into the heart of family living and when it does - it changes the way we live and care for our loved ones - forever.

Huge sums of money are donated each year to attack Cancer and heart disease.  An injection of $ 200 million into Dementia research over just a four year period would have a good chance of bringing that promising research to the point where it could slow the disease onset.    That seems the best bet to head off a Dementia epidemic in the short term.

Advances in the recognition and treatment of Cancer and heart diseases are delivering results.  A well oiled money trail is in place, using the patronage of people who have made funding research their careers.  We need these sort of people to help share the load of bringing Dementia research into the main field of medicine if we are going to succeed in stopping Alzheimers becoming the scourge of the twenty-first century.

We all fear death from Cancer or a sudden heart attack.   By comparison, Dementia kills more slowly, but it spreads it's web of misery in a wider  circle that encompasses the entire family.   Without the means to curb it's advance, few will escape becoming at least a partial victim !

The " User Pays " principle !

The phrase " Once upon a time " comes to mind when we look at the history of education.  In a kinder and gentler age kids completing their school years were usually faced with selecting one of three career options.   If they were academically gifted - and came from a wealthy family - they went to university, spent several years gaining a diploma and thereafter earned a very good living as a professional.

Bright kids from a working class family looked to a trade career and sought apprenticeships in carpentry, welding, plumbing or a host of similar trades.   To gain the necessary qualifications they attended Technical College several nights a week.   The good old " Tech " has been renamed " Trade and Further Education "  ( TAFE ) these days.  The principle of this training was on a " learn and earn " basis.   Work by day and earn the required qualifications by night.

The last category left school without gaining any sort of certificate.  They simply applied for any vacancy offering in unskilled work and spent the rest of their lives labouring or working in a low wage industry. At that time, such jobs were plentiful.

Times have changed in this twenty-first century.   The people with the bright minds have developed machinery to replace manual labour and such jobs are now few and far between.   A changing work place has made university qualifications no longer a sure bet for a top job with a big salary, and the humble tradesman or tradeswoman has emerged as the new elite, in high demand for their services and earning big money in their specialised fields.

The universities are now open to all sections of society, but at a cost.   Course fees are beyond the resources of many families, but education is available on a " lay-by " system called HECS.   Simply rack up the fee to get a qualification, and start paying it back when your income reaches a certain level.   Now precisely the same system is being applied to TAFE students.

Many TAFE students are horrified to find that the fee for the full year Visual Arts course in 2013 will be $ 10,500.   In the 2012 year it cost just $ 1308.     The lesser "Certificate " course has jumped from $ 984 to a whopping $ 7500.

The TAFE world has expanded far beyond the traditional building trades.  We live in the computer age and the jobs of the future are going to be concentrated in areas of technology that are only now starting to emerge.  As an example, the use of Nanno technology is fast expanding the world of cosmetics and medicine and seems likely to take us to undreamed of destinations.

It costs big money to provide the education system provided by both universities and TAFE and cash strapped governments are committed to making education available to all.   To do this, it has become necessary to recoup costs from those gaining benefit from this training - and it seems that high fees are now a fact of life.

It seems that we are seeing a " merging " of the differences between university and TAFE.   What TAFE is now offering is expanding into the higher qualifications only previously available to those who attended a university, and as a consequence - a similar cost structure is starting to apply.

It gives credence to that old saying " that you only get what you pay for ! "

Which goes hand in hand with another venerable witticism.    " There's no such thing as a free lunch ! "

The " Cannabis " question ?

The National Drug Research Institute has been holding a confidential survey to gain insight into the illegal Marijuana crops being grown in the homes of ordinary Australians.  In the vast majority of cases this is entirely for personal use and in many cases the people growing it claim it gives medical relief.  It is interesting to note that 45% of home grown Cannabis is planted in the back garden of homes, 26% is grown inside a cupboard within the house, and 19% is located in a garage or garden shed.   Obviously, in the great majority of cases, this is out of sight of the police.

The media reports numerous drug raids where giant Marijuana crops are located in bushland or hidden away in drug houses converted with stolen electrical by-passes to grow commercial quantities for the illegal drug trade.   This is the province of the underworld that is making multi-million dollar profits from the drug trade.
In some parts of the world, the criminal gangs involved are in open rebellion against their police forces and this has devolved into gun battles in the streets and the wholesale murder of big groups of people.  Ominously, here in Australia we are seeing the tip of this iceberg with gun play between rival motorcycle gangs who control part of the drug trade.

Referendum held together with the recent American presidential election resulted in two US states voting to make Marijuana for personal use legal.   Colorado and Washington state will defy a Federal law and allow their citizens to do legally what Australian users seem to be doing in their sheds and garages for personal use.
This will be done openly, and this new legal product will attract the usual tax regime which will add to the coffers of state treasuries.   It is anticipated that tax rates for Cannabis will be at similar levels to alcohol and tobacco.

A lot will depend on how the two states use this referendum question.  If it's interpretation allows the commercial growing of Marijuana as an open slather for export to other American states and overseas markets it will probably draw a massive Federal response to ensure that Federal laws apply.   On the plus side, it would virtually shut down the drug barons serving the American market with Cannabis from Mexico, but it would throw open an unstoppable use of this drug across the entire United States if two states were able to legitimately sell and use Cannabis.

No doubt both Federal and state authorities here have toyed with the option of legalising " soft " drugs and separating them from opiates.   The resulting tax bonanza would solve many of their money problems, but they fear the backlash from the anti-drug people and so far it has not been put to a referendum.

Statistics reveal that the police are not seriously going after those mums and dads growing a plant for personal use in their backyards.   Convictions are few, and when that does occur it is usually because someone got greedy and started to sell a little surplus - and came under notice as a "pusher ".

The eyes of the world will be on Colorado and Washington state.   What develops there from that referendum will most likely chart the course of legal Marijuana on a world wide basis.   After all, democracy is said to be the paramount will of the majority of the people.   When they speak, governments would be wise to listen !

A wider war ?

It looks like the war in the Middle East is about to take on a new dimension.   The militants in Gaza have acquired rockets with a far greater range and for the first time both Tel Aviv and Jerusalem can come under attack.  There is every chance that this rocket war may escalate to the point that all of Israel could take fire from the two Palestinian enclaves within the country.  The ramifications will obviously spill over into the standoff between the United States and Iran.

The western world is convinced that Iran is enriching uranium with the intent to develop nuclear weapons.It's leaders have publicly announced that it is their intention to " wipe Israel off the map " and it is now evident that they are the source of the enhanced rocket weapons being used from the Palestinian territories.

The M-75 is an Iranian developed rocket missile that is being manufactured in Iran and shipped via the tunnel system linking Gaza with Egypt.   The Egyptian leader, Mohammad Morsi has stated his support for the Palestinian cause and it can be expected that Egypt will not hinder the transfer of these rocket parts across it's borders.

The strategy behind these rocket attacks seems to be to unite the Arab world behind the Palestinian cause - and that seems to be working.   Israel is poised to send troops into Gaza to shut down the rocket sites and across the world Muslims are demonstrating i n support of the Palestinians.  They simply ignore the fact that no country can countenance attacks on it's citizens without launching a response.   The Israeli's are accused of targeting women and children.  The fact that these Palestinian rockets are harming Israeli women and children is ignored.

The fact that Iran has chosen to involve itself in the Palestinian question will strengthen United States resolve to deny it access to nuclear weapons.  The Iranians are utterly unpredictable and should they equip Hamas or other Palestinian insurgents with a nuclear weapon there is no doubt that it would be used against the Jewish state.  If that happened, a nuclear war would be inevitable.

This is fast developing into a high stakes poker game, and the pool on the table is growing very fast on a daily basis.   The danger is that moderates in surrounding Muslim countries may be outflanked in the hysteria generated by this military action, leading to fundamentalists gaining control in places like Syria and Libya.  If that happens, all hope of a democratic Middle East emerging from chaos and dictatorships will be lost.

Sanctions have crippled the Iranian economy, but it seems likely that enriching sufficient uranium to make at least some nuclear weapons is imminent.   The US election is over, and as a result the president's action options are now less restricted.   In the past few days the world has become a much more dangerous place.

It seems to be a matter of " who blinks first " - and both sides are not in the business of blinking !  It will take herculean efforts by world leaders to lead the way out of this mess without a wider war.   The pages of history will record whether or not they were up to that task !

New Union tactic !

The militant Construction, Forestry, Mining and Energy union ( CFMEU ) has adopted a new tactic to try and recover money lost by subcontractors when big building companies go into receivership.  They threaten to use their muscle against the ultimate owner of the place being constructed unless that company makes good and pays out those losses.

Woolworths contracted work for a new supermarket in the Sydney suburb of Balgowlah and this was won by the giant Southern Cross Construction company.   Southern Cross has since ceased work and gone into administration, leaving money owed to numerous subcontractors for the work done.   This is a familiar situation in the building trade.   Theoretically, the successful tenderer receives progress payments as the job proceeds and uses these to pay subcontractors, but firms in financial trouble usually slip behind with payments and once the firm goes into administration - years may elapse before the subcontractor receives just a few cents in the dollars owed.

The CFMEU is suggesting that it may place a boycott on Woolworths and curb their expansion plans unless they come to the negotiating table and meet union demands.   The union claims that Southern Cross won the Balgowlah job with a tender $ 4 million less than the nearest tender.   In some convoluted way they see this as a " profit " that should be used to reimburse subcontractors who are losing money by no fault of their own.   They embellish this thought with the claim that Woolworths have " deep pockets " and make an annual profit in the realm of $ 1.8 billion.

This tactic was previously employed against the state government when a building company went bust, leaving a number of low income housing projects incomplete.  In that case, the jobs were declared " black " and work remained at a standstill for months while negotiations proceeded.   The matter was finally resolved - with  " undisclosed terms ! ".

This tactic seems to be taking the building trade into new directions.  Bankruptcy by the prime contractor has always been a problem in an age when the builder is more of a " manager ", overseeing the contributions by a small army of specialist contractors, who themselves are part of a new trade consortium.

For instance, few builders construct their own frames and roof trusses these days.  That is usually provided by a frame and truss  factory, and the builder engages separate assembly teams to put them in place on the job.  This work is followed by other specialists who clad the walls of the building, and other specialists who batten out the truss roof and fix tiles or sheeting.    It would be interesting to see where the CFMEU expects the dividing line to fall between " subcontractors " and " other suppliers ".    If the CFMEU is looking for all money owed to be paid, then the building trade is likely to suffer a severe reversal.      Many principals will have second thoughts about entering into such an open ended contract !

The obvious answer is to supervise the distribution of progress payments so that work completed is promptly   reimbursed, but this would create another level of bureaucracy and take management out of the hands of the building companies, making them more vulnerable to ceasing operations.   It is a fact of life that contracting contains an element of  " risk "  that goes hand in hand with the skill of making a profit.   It would be difficult to eliminate risk - without an equal and opposite effect on profit.

At this stage, the CFMEU is setting it's sights on the big end of town.  It is threatening to use it's muscle on those with deep pockets and there seems no chance that the average homeowner trying to have a new house built will be threatened with making good the losses of an insolvent building contractor if the work stops at the half completed stage.

Unfortunately, once the unions start to interfere to regulate the contracting arrangements that have served the trade well for centuries,  the chance of other large construction companies closing their doors and seeking administration - increases sharply !

Divided loyalties !

The coming Royal Commission into the sexual abuse of children is surely going to throw the spotlight on the Catholic Church's " Seal of the Confessional " ruling.   It is a teaching of the church that all parishioners have a duty to attend mass and confess their sins, and accordingly the priest can grant absolution and thereby save their soul.

The sticking point is the claim that matters disclosed in such confessions are a bond between the sinner - and God !    Accordingly, the church claims that the " Seal of the Confessional " applies, and the priest who heard the confession is obliged to treat it with secrecy.

This comes into conflict with the laws of Australia which require any person having knowledge of such wrongdoing as the sexual abuse of children - to report that matter to the police.   A priest who hears such a confession and fails to report it as required is guilty of a law breach and may face prosecution.  In the past, the courts have been uneasy with this conflict between church and state and in many cases the judiciary have not pressed the priest to make a choice as to which of these divided loyalties is paramount.

There is an expectation that the Royal Commission will make a finding that makes the obligations of priests crystal clear.   If that finding requires priests to obey their duty under civil law there is every chance that the law of Australia will come into conflict with the Pope, the head of the Roman Catholic church. If the " Seal of the Confessional " is ordered to be disregarded by Australian courts, the Pope will have no option but to give a Papal ruling, and if that conflicts with the law of the country in which a priest reside - then a serious clash of church and state will be obvious.

Who has the paramount loyalty has been a struggle between members of all religions for centuries.  In times of war, priests have attended to the religious needs of warriors on both sides of the battle lines - and in most cases have preached the contention that " God is on our side ! ".   We constantly see warfare between the followers of religions that share the same God, but differ on minor matters of procedure.   They seem quite happy to slaughter one another mercilessly, egged on by their religious advisers..   Religion has been the cause of many wars over the centuries.

All religions have their share of paedophile priests but Catholicism has a long history of simply moving offenders to a remote parish and covering up the crime, all in an attempt to preserve the good name of the church.   The fact that this has been happening in countless countries suggests it may have been done on orders from head office.

The outcome of this Royal Commission remains to be seen, but if it requires the Seal of the Confessional to be broken whenever a priest is called to give evidence in court it would seem logical that those attending confession be made aware of this priestly duty.   It would also help if the priest forewarned the penitent that he would cut short the confession if it contained any matter that he was obliged to report to the police.

Unfortunately, this matter can only result in schism, whichever way it goes.   There are fanatical Catholics who will not accept a legal constraint on religious dogma and there are countless citizens who demand that the law applies to each and every citizen in this country.

The only certainty is that sexual abuse of children will no longer be hidden in the shadows.  The most powerful legal tool available has been brought to bear to drag this issue into the open and people of goodwill from all religions will not let it rest.  

A " thankless " task !

The coroner has handed down her findings on the death of 21 year old Brazilian student Roberto Curti and she has been scathing on the circumstances that led to his death.   She found that the police chasing this young man through the Sydney streets were acting like school children in the movie " Lord of the Flies " and that individual officers acted in a " thuggish " manner.

Curti was Tasered fourteen times, repeatedly hit with capsicum spray and was on the ground, handcuffed at the time of his death.  The police commissioner has accepted the points raised by the coroner and reports that officers concerned have had their Taser certification cancelled.   They will have to undergo retraining before that certification is restored.

The family of the slain student is demanding that police officers be charged.   Their fury is understandable.  This young man should not have died in police custody and the methods of apprehension were clearly excessive, but there are two sides to every story.

Roberto Curti clearly contributed to his own death when he ingested a LSD tablet on a night out partying in Sydney.   He took a step into the unknown when he tried an illegal drug and the result was a reaction that rendered him into a psychotic state.  There followed irrational behaviour.  He phoned his sister and accused her of wanting to kill him.   He got into a fight with other revellers.  He got chased through the streets as a result of that fight and took refuge in a convenience store.   He did damage to the store fittings and eventually ran out the door clutching stolen biscuits, causing the proprietor to phone the police.

Sydney can be a wild place in the small hours of the morning.   The advice over the police radio wrongly suggested that this had been an armed robbery.   Fuelled by LSD, the student broke away from the first police who tried to contain him and it seems that the chase gathered other young and inexperienced officers who made bad decisions on Taser use.   Most of these officers had no idea what reason the student was being sought - and no idea what risk factor was involved.  They simply over reacted in the heat of the chase and the end result was the death of a young man who was ordinarily a mild person with a promising career ahead of him.

What will annoy many people is the complete absence of any reference to Roberto Curti's part in this tragedy.   It is clear that there would have been no chase - and no death in police hands - if he had not taken a chance and tried an illegal drug of unknown purity.

The entire focus of this investigation has been on the actions of the police - and in particular - their use of Taser guns as the weapon of choice.   Clearly, they over reacted but at least some good may come out of this tragic incident.   But police face a divided responsibility every time they are called into action.   On the one hand, they are tasked with preventing an offender to doing harm to others - which calls for that person to be subjected to containment.   On the other hand, they are expected to show restraint and objectivity, without knowing what danger the offender may pose or how that person may be armed.

Policing is a " thankless task ".    Those who fall foul of the heavy hand of the law will be quick to criticise and we all complain when we get handed a speeding ticket - but society would be an unthinkable place without the security that police provide.

In judging the rights and wrongs of this untimely death, it is a fact of life that mistakes in policing usually lead to better training and improvements to procedures, but at the same time it must be remembered that those who take mind altering drugs also contribute to the consequence of  events !

These changing times !

Home insurance used to be very predictable. The bricks and mortar were  covered against fire or storm damage, but any sort of flood damage could be a problem.   Each insurance company seemed to have it's own interpretation of what was - and what was not covered - when water was involved.  Many claims became areas of dispute over whether the damage was caused by a rising river level - or an exceptional downpour from the sky. One wasn't covered. The other was !

The premium charged for insurance cover depended on the type of dwelling involved.  Once again, interpretations varied, but usually the insurer was more interested in the general locality as measured against claim history and most applications for cover were accepted within a general price range.

Few insurance companies are making much profit these days.  We have had a string of storm calamities hitting across Australia and these involved big payouts.   More to the point, the forecasters are sounding the alarm that global warming will deliver more bad insurance news with storm ferocity and frequency increasing, and rising sea levels damaging coastal properties.    Now the insurance people are looking at risk on a street by street basis, and this new risk assessment is delivering a price shock to those at greater risk.

One Wollongong household has seen their insurance premium jump eight hundred percent - from $ 800 to a whopping $ 7200 for a full year's coverage.    This property has never had a flood claim, but apparently the assessors have done their sums and see an expanding risk emerging.

It looks like insurance is going to creep out of reach for some householders and we are probably going to see an increase in the number of uninsured properties the next time there is a major weather event hitting this city.    This reduces the very concept of how insurance works.   By spreading the risk over a huge area the pool of premiums is large enough to cover damage that only affects a small pocket of the area covered.  As the premium pool shrinks - the individual policy costs rise accordingly.

We are probably about to see the demise of " all risks " home insurance cover and it's replacement by " specific risk " policies that give home owners  more control over premiums.   Each property may have risk assessed according to it's location in regard to services, and provision of cover priced accordingly.  Those seeking fire cover would get a lower premium if there is a fire station located nearby.  Flood cover may only be economically possible for properties situated well above any likely flood level, but would be covered against a " cloud burst " situation.    Householders would pick and choose the cover they desired, judged against the cost of individual event cover.

This is probably a natural progression of the insurance industry.   Life insurance has already moved away from the past procedure of sending each applicant for life cover for a medical examination  and requiring a depth of invasive questions to be answered.   Cover is now available over the phone by the provision of age, sex - and smoker status.   There is no medical examination, nor health questions asked.   Cover is automatic from the day the first premium is paid.

If the imposition of a levy to fund the fire brigade is lifted from insurance premiums and collected more widely by it's inclusion as a separate item with council rates the average insurance premium for house and contents will fall sharply.   The insurance industry must be hoping that this will cancel out the more elective use of risk analysis to to raise premiums - and result in the majority of people continuing to insure.

Property loss in a catastrophe is the worst financial setback that can happen to any family.   Buying a home is the biggest financial transaction that most people ever make and it becomes the corner stone of their personal fortune.    Insurance - at any cost - is the only way to protect that major asset in what is becoming a more dangerous world !

A day of reckoning !

A lot of people across Australia did not sleep well last night.    The Australian government has announced that it will hold a Royal Commission to look into the sexual abuse of children across the entire spectrum of churches and organizations that cater for children's needs.    The person who will head that Commission and the terms of reference will be announced in coming days.

This is long overdue.   In particular, the Catholic church has been singled out because victims claim that church authorities coverup crimes and simply move the offending priest to another district, where the crime is repeated.   Catholic authorities will be relieved that this Commission has an open agenda and the sins of it's priests will not be the only specific target of the enquiry.

It is not only clergymen who will have a shiver of fear running through their soul.  It is claimed that police were complicit in covering up sex abuse of children and the enquiry will be looking at the entire spectrum of society who would have been aware of this crime - and who chose to say nothing and allow it to continue.

It seems likely that ordinary Australians are in for a shock.   Once the enquiry gains media prominence a lot of victims will gain the courage to come forward and we may be surprised at how wide this problem had become, and how many innocent children had their trust in those tasked with protecting them abused.  We may learn of lives blighted and these disgusting acts sending many to an early death by suicide.

This is an opportunity to tackle the sex abuse of children headon !   The subject of paedophilia  comes in many forms and guises.   We will need to look harder at the mountains of indecent child photographs that regularly exchange between perverts around the world because in many cases viewing this material is not far removed from taking part in physical abuse.

It is important that this Royal Commission be totally impartial and that any form of church loyalty be set aside to let the cards fall where they may.   In particular, both sides of politics must take a neutral stance and let the enquiry do it's work.    It seems certain that some well known people may face adverse findings and reputations will be ruined, but past protection is just what allowed this crime to flourish.

At long last, Pandora's box has had the lid lifted.    Victims are about to get their day in court - and for the perpetrators - there will be a day of reckoning !

The moral highground !

Many people will be surprised to hear that General David Petraeus has tendered his resignation as head of the CIA, and after a pause of several days, President Obama has reluctantly accepted it.  David Petraeus was America's top four star general, credited with turning around the Iraqi war and using the troop surge to rejuvenate the mission in Afghanistan.    When he retired from the army at 60, he accepted the post of CIA head and there are indications that he might have become a contender for the job in the oval office in 2016.

The reason for the resignation is clear.  Petraeus admits that he made a serious " lack of judgement " when he entered an extramarital affair with the woman who was writing his biography.  He accepts that as a person who has access to the nation's military secrets, this  puts security at risk by actions that could lead to compromise.

Strangely, this sexual liaison came to light by pure chance when the FBI was conducting an unconnected investigation and stumbled on emails revealing a line of communication.   This was entirely a private matter and no laws were broken, but it does throw the spotlight on the strange moral rules that seem to apply to some - but not to others.

Once again sex rears it's ugly head, and yet sex is not the bogey it was fifty years ago.   That was a prudish era when any unmarried woman having a child could expect both church and government to collude to use illegal methods to seize her baby and put it up for adoption.    Divorce was almost as bad as the " Scarlet Letter :".   The ending of a marriage in the divorce court usually ended promising business careers and halved the chances of a new marriage.  In many jurisdictions, being named the guilty party in a divorce was a certain path to penury and social discrimination.

How things have changed !    Virginity is as rare as hen's teeth.   Church weddings are out of style and many dispense with a wedding entirely, substituting it with living together on a " try before you buy  basis."   Children born out of wedlock are so common that schools sometimes have several kids from the same family, all with different surnames.   Those living a " Gay " lifestyle are no longer breaking the law, and we are moving closer to same sex marriage.

It seems strange that a man with an exemplary record of service to his country should feel it necessary to fall on his sword when a simple sexual attraction that should be a personal matter between him and his wife is trumpeted across the media and is reported in a tone of  " disgrace ".   Others before him who held high office have been involved in similar liaisons - and survived.     Indeed, a sitting President was forced to confess just such a liaison and many of his predecessors were screened by a forgiving press when their affairs became common knowledge.    We seem to have differing standards when it comes to the moral highground.

Any person being considered for high office would be well advised to have a long and careful look at their past history.   Even a minor indiscretion will probably emerge to haunt them because the business of politics and career enhancement makes it certain that those salivating for the job held will be quite ruthless in searching out and using smear as a weapon of destruction.

The pity of it is that people like David Petraeus are the type of leaders that we need to guide us out of the mess that is strangling the world economy.

Politically correct ?

It seems that the need to be " politically correct " whenever we make a speech now requires some form of Aboriginal mention to be part of all and every address we make.    A patron of the one hundred and fifty year old St John's College at the University of Sydney seems to have insulted the Aboriginal community because he failed to mention them when he lauded this institution.

Jeffrey Phillips SC paid tribute to the " Traditional custodians of this place "  who he went on to add were " Benedictines who came from the great English nation ".    This was said in the great hall of the university, before an audience that contained some Aboriginal students.  At least one of whom has complained and feels " deeply traumatised ".

It is hard to determine exactly what is so offensive to members of the Aboriginal community in that audience.
When the first fleet arrived in 1788 there was no university in Sydney.   There were not even any schools teaching the " three R's ".    The ships of the first fleet carried convicts, guards and free citizens from the British Isles and one of the first things they did was farm the land, build houses and set up schools to educate their children.  The original inhabitants of Australia were not involved in this activity and it is hard to see where their omission from Phillips statement is a sin.

Building a university was a natural extension of the establishment of primary schooling and the divisions within the Christian religion contributed colleges.   Benedictine Catholics were the moving force behind the establishment of St John' college, and hence Phillips statement was simply a confirmation of fact.

The rights and wrongs of the first fleet's arrival - unannounced and uninvited - is an event sanctioned by people who are not alive today.  They were simply following the custom of that time which stipulated that the nations of Europe had devised ships, trade and force of arms to settle and command new lands found by their explorers.   The wishes of any indigenous people were not considered and those people were summarily ordered to obey the laws of the invaders.

It is too late to undo any injustices from that time.   All we can do - and have done - is to apologise and make sure that the ancestors of those original inhabitants are given equal rights.  Some Aboriginal people have chosen to continue to live a tribal life in remote areas while others have integrated into non-Aboriginal Australian society.  Various schemes and quotas are in place to  assist that integration.

It does not help when the Aboriginal people have a massive chip on their shoulders and examine every aspect of life for a hidden agenda of insult.  Just as Aboriginal people are proud of their folklore and the achievements of their people, other Australians are equally proud of the society they have built in this country, and that in no way disparages Aboriginal achievements.

It would be interesting to know in what way Jeffrey Phillips comments delivered " trauma " to the Aboriginal student who complained about his speech.  Precisely what did he think was missing ?   In what way did the founding of St John's College by Benedictine priests cast some sort of slight on this students Aboriginality ?

Used in the right way, " Political Correctness " can be a measure of mending relations between the disparate groups that make up our society.   When it is used as a " weapon of war " it drives those groups further apart  - and delivers "irrationality " !

Organ donation phobia !

Australia is one of the world's most advanced nations with a population of just over twenty-two million citizens.   We enjoy high educational standards and our way of life is so exceptional that people of other lands literally die taking risks to try and emigrate to our shores - and yet we languish at number twenty-two on the world list of organ donations !

Hold a survey and ask people if they wish to donate organs when they die and the response is heavily positive.   An amazing number of people tick the " Organ Donor " option when renewing their drivers license, but for some strange reason this does not translate into donation acceptance when it comes to the point of agreement by relatives.

We have this strange custom of second guessing the donor's wishes.  Instead of proceeding because the deceased has indicated this wish, we ask permission from close relatives at a time when emotions are raw. We are asking people grieving at the death of a loved one to condone what they may see as a form of invasion of that persons body at a time when they are most prone to an emotional response.

There are many reasons for rejection.  Religion is amongst them.   The reasons we ask relatives is because we would not wish to proceed to retrieve this life giving gift if it caused those near and dear to believe that some part of the departed persons spirit has been interrupted in it's journey to another place.   A death in the family is perhaps the worst possible time to make decisions about the treatment of earthly remains.

Unfortunately, as a result of this dearth of donor organs, one in every six people languishing on waiting lists for a transplant die before their need can be accommodated, and yet at the same time, every day of the week a steady stream of organs that could save lives is being buried in the ground or reduced to ash in crematoriums.

We have conducted numerous advertising campaigns, urging those who wish to be organ donors to discuss this with relatives and make their wishes clear.  It has had some effect.    In 2011 those on waiting lists received 1009 transplanted organs from 337 donors, an increase of 36%,  but this is minuscule when we consider how many Australians died during that same period.

One of the points of contention is the need for speed.  When a person dies, donated organs need to be harvested quickly, and the transfer to the patient needs to happen at similar speed.  In many cases, the search for relatives and the indecision's that result close the opportunity gap.   We need to do better, and that needs a completely new approach.

There are indications that most people would support making organ donations an automatic process for those who have given prior approval, with provision for those who disagree to place their name on a register to opt out in any circumstances.  It would be wise to put this option to the test by way of a referendum at the next general election.   If the majority agree, then in a democratic country, that should be the way the community delivers the authority for a law change to make this happen.

Eventually, medical science may learn how to make stem cells duplicate any organ in the human body and make organ transplants obsolete, but that is in the future and right now we have people whose lives can be saved by using organs that are simply going to waste.

That is a question that should be put to the people - and their answer should be made into law !

An expansive opportunity !

Last Sunday, Wollongong was a very busy place.   Ten thousand enthusiastic people got on their bikes and took part in the "Sydney to the Gong " bike ride to raise money for Multiple Sclerosis.  This annual event is a major fund raiser for MS research.

Organisers of the ride are suggesting that if it  is switched from Sunday to Saturday it will open the way for the event to climb to national importance and become the highlight of the tourist year for this city.   When it started twelve years ago four thousand riders made the journey.   Now it is capped at ten thousand - and we are turning people away.   The opportunity is offering to create a iconic event of national importance.

The organisers make a good point.   Those ten thousand bike riders do not ride their bikes back to Sydney.  The ride is accompanied by car loads of family and friends and this leads to picnic lunches and family get-togethers before the start of the transport operation to get bikes and riders back home.   If it were held on a Saturday, it would open a huge tourist opportunity for the ride to become a weekend away for many people.

The tourist spinoff for Wollongong business people would be enormous.  It would mean lifting that ten thousand rider cap and allowing the event to reach it's natural height - and that would mean it would attract media coverage to rival the annual " City to Surf " marathon through the streets of Sydney.  Literally - the sky would be the limit !

Of course there would be problems.   Lifting the numbers cap would mean the need for more police to marshal traffic at key intersections and those living along the route through the Royal National park - and specially along Lawrence Hargreave drive would be marooned in their homes for several hours, but the people of Bathurst cheerfully accept similar problems to allow the great car race on the mountain to be run each year in October.

This is a chance to expand what has become a truly amazing charity ride into a national event that will not only create a great reward for MS research, but will put the city of Wollongong on the tourist map.   It is an opportunity that requires the city fathers to " think outside the nine dots " , but also for the people of Wollongong to get behind the event and accept a day of huge visitor numbers and many road closures to accommodate the ride.

Opportunity is not just softly knocking on the door.   The reverberations can be heard for miles around !

Four more years !

So much for " Neck and Neck - Too close to Call ".    Obama won 303 Electoral College votes compared to Mitt Romney's 206.   That is a decisive winning edge, but when it comes to the popular vote the American nation was divided in opinion by just one percent - in Obama's favour.

This election also said something about demographics.    The Democrats swept home in the high density east coast, west coast and the populous state of Illinois with it's capital, Chicago.   The heartland states in the middle were a sea of red - favouring Romney, and this election will deliver a host of Republican governors that the White House will have to deal with.

The next four years will be critical for the American economy, and as a consequence - make or break for the world economy.   If America can break out of it's economic tail spin it can be the growth engine to recovery. That will depend if the Republican majority in the lower house can work with a Democrat president to find common ground and make the compromises that will be necessary to get a stalled economy moving again..

The past four years saw the Republicans try and unseat Obama at this election by imposing a blockade. of all proposed legislation.  They were uncompromising, but the situation has changed.   Obama is not facing reelection and there will be no incumbent to face off in 2016.   The hard right of Republican politics either softens and moves to the middle - or the party remains out of touch - and out of office.

The two sides of politics clashed over two basic issues.   Republicans vehemently refuse to even consider any taxation increases, and Democrats are equally firm that welfare entitlements remain unchanged.   Both will need to give ground.    The only way that crushing deficit can be reduced will require compromise on both sides of politics.

The days ahead will be critical as this election is examined and digested by the party leaders who decide policy.   Politics has always been divisive, but in the past a degree of goodwill prevailed and issues that were for the good of the country got partisan support across the divide.    It is essential that politics reach some sort of common ground on issues such as the ultimate fate of the undocumented that live in the country, how health insurance is handled and what sort of military posture American adopts with the rest of the world.

This election has delivered the people's choice.   Now if all depends on whether that signals a bright new beginning - or more of the same - for four more years !

Rites of passage !

The word " Initiation " strikes abject fear into the hearts of those joining the ranks of educational institutions, closed societies or divisions of military service.  Somewhere in the dim, dark ages of the past it became the custom to humiliate and haze incoming members as part of a ritual of acceptance.   This even found it's way into the work environment.   In many cases, those starting a trade apprenticeship found themselves subjected to rituals that were both demeaning - and in some cases just downright dangerous.

Such a situation has developed at the 150 year old St John's College at the University of Sydney.   This Catholic institution is in disarray with the resignation of some board members over a culture of intimidation that has caused Cardinal George Pell to demand the resignation of serving priests from it's board.

What brought this to public attention was an instance when about thirty male students surrounded a new female member and intimidated her into drinking a toxic concoction that resulted in her needing hospital treatment.   It joins a long list of initiation rights that have blighted this nation's military academy and similar events in private industry - one of which saw an apprentice set alight by a colleague.

Just what is the basics of these " rights of passage " ? It seems that in many instances it is a case of the " herd mentality " imposing it's superiority on those joining the franchise.   In the British public school system, " freshers " were made to understand their inferiority by acting as servants for their more senior colleagues in what some simply called " institutionalised bastardry ".

One of the problems is that those who have passed through and become senior mentors of such institutions develop an affinity for the practice and vigorously defend it.   They usually have sufficient seniority to deflect criticism and resist any new procedures to install reform. Such seems to be the case at St Johns College.

In many instances initiations take a fairly harmless form, but they have a habit of extending under pressure of the "  herd mentality " and often involve forms of sexual humiliation which delivers titillation to the abusers, but inflicts lifelong psychiatric damage to the victim.

There is a pressing need to come down hard and abolish this rite of passage.   It tends to be practised in secret, and it lends credence to the notion that - scratch the surface - and those of this twenty-first century are no more civilized than the denizens of the dark ages !

At last - Justice !

When the " Great Financial Crisis " hit in 2008 a lot of people lost a lot of money.  Superannuation fund levels nosedived.   Shares dropped in value across the world's trading boards.  Many gilt edged securities became worthless overnight.   It was apparent that financial institutions had been lax to the point of criminality in their dealings with the public - but almost nobody faced a court and went to gaol.

Public money bailed out financial institutions, and the very same people who created this mess remained in their plush seats, and when the uproar died down - continued to do precisely the same dubious trading moves and once again received obscene amounts of money from the " bonus pool ".

Now - at long last - a Federal court has delivered a ruling that will rock the financial world in it's tracks.The court has decided that incompetence was involved in a case where thirteen local councils were induced to put their cash reserves into " Constant Properties Debt Notes ",.   The councils lost $ 30 million when their investment declined in value by ninety-three percent.

The court found that ratings agency Standard and Poors should not have conferred a AAA rating on these securities.   Offering securities with a " no risk " status was a cosy little internal arrangement between rating agency Standard and Poors,  their investment bank ABN Amro and a firm specialising in giving financial advice to councils - Local Government Financial Services. ( LGFC ).

The cat is now well and truly amongst the pigeons.   The way is open for those councils to redeem their lost funds and the door is opening for many more claims to go through the court system to place the blame squarely on the head of those who either failed to adequately investigate offers being made or bestowed credit ratings that were inconsistent with risk.

Of course, these findings will be aggressively challenged in the appeals courts, but the Federal court has found that when an entity bestows a security rating that is stock in trade for it's existence, it has a responsibility to do that fairly and with diligence.   With the power to influence financial decisions - comes responsibility !

It seems inconceivable that in the years since the GFC we are still taking credit advice from the same institutions that failed us miserably with financial advice, and that it is these credit rating agencies who determine the rate of interest that the governments of countries across the world will pay on their borrowings.

At least the Federal court has had the guts to apportion blame where it is due, and hold the culprits responsible.   If making good drives these firms out of existence by way of the bankruptcy court it will clear the way for the emergence of new institutions.

Rating the stability of the finance world is the corner stone of financial sustainability.   We need that function to be in good hands, free of the taint of past malpractice.    That is yet to happen !

The hazards of "Globalization " !

A " Globalized " economy is supposed to deliver cost savings to citizens of the world.  The idea is to centralise the production of goods according to the skill required and the cost structure that prevails in the country of manufacture.  By that reckoning, a high wage country like Australia would concentrate on high end manufacturing, big on recouping the value added components of automation and skill research.    Low wage countries would churn out goods that are labour intensive and require little in the way of development skills to be functional.

Two things came together to upset that balance.   The low wage countries added robotic skills to create high quality cars at the lower end of the automobile spectrum.  Vehicles from China, South Korea and India have priced traditional car manufacturing countries out of competition, resulting in a two tier system evolving. The big name car companies buy their low end product from one of these three manufacturing sources and rebadge them, while retaining the manufacture of cars in the high end of the price market.   The fact that the low end is the volume end means that there are fewer car plants still operating in traditional manufacturing countries - and few jobs offering in the car trade there.

The other influencing factor is the proliferation of competition in low wage countries.  Industry regulation is lax and numerous startup companies emerge to try their hand at entering the production market.  In many cases, their manufacturing methods are crude and the product they produce may not reach the safety standards required in overseas consumer markets.

A case in point involved a recall notice appearing in today's newspapers.  A major grocery chain is appealing for buyers of safety matches sold under their house brand to return the product for a refund.   This notice states that when used, the match head may disengage from the matchstick.    Obviously, a blazing match head escaping the control of the user would deliver a major safety concern.

Originally, matches would flare when struck against any surface.  For safety reasons, the match head was designed to only flare when rubbed against a particular surface which became a part of the product container.   It sounds reasonable to assume that a small manufacturer lacking skills started to manufacture matches and made an error in the chemical formula used, resulting in the safety issue that sparked the recall.

It seems that globalization is a mixed blessing.   It will certainly result in cheaper consumer goods, but at the cost of jobs in high end countries - and we can expect  a proportion of dangerous goods to reach our markets as price becomes the the main criteria in buying decisions.

In many cases the producer of an Australian made product is forced to cease production because what is offering overseas is far below the manufacturing cost in Australia.   Unfortunately - as is the case with these matches - what is offered on the supermarket shelves may not attain the safety standards that we take for granted.

Such is the price of globalization !

The " Drunk Tank " idea !

One of Barry O'Farrells pre-election pledges was to clean up the streets by creating sobering up facilities in city centres.   This is not a new idea because what was called " the drunk tank " was an integral part of policing in many American cities during the last century.   Unfortunately, simply resurrecting ideas from the past does not necessarily mean that they are going to work in these very different times.

For a start, the drunks of half a century ago were usually all male.   Today - in this more liberated age - the police have to deal with drunken women in almost equal numbers.  There is also a very good chance that what appears to be people intoxicated with liquor may hide many who are also suffering the effects of illegal drugs, some of which induce a state of psychosis.   Today's drunks of either gender are likely to be more aggressive and prone to violence.

The police are approaching this " drunk tank " idea with caution.   It would obviously need gender separation, but the idea of corralling a number of drunken people in a common enclosure fills them with dismay.   The side effects of too much alcohol include loss of control of bodily functions and police fear trying to control a situation awash with vomit and infused with a " fight culture ".

It was never the intention to charge those thrown into the drunk tank to sober up.   It was simply a form of restraint to prevent drunken people doing harm to themselves or to inflict harm on others.   That still seems to be the Premier's intention, but it could also present more new problems than it solves.

We live in an age of litigation.   If someone gets seriously beaten up by another resident of a drunk tank that could lead to court action and the police - as custodians - could be held liable.  There is also the risk of what can euphemistically be called " mission creep ".

Many a worthy idea ends up being entirely different from it's intended concept.   The Taser stun gun seems a perfect example.  This was introduced as a life saving alternative to use of a police pistol to resolve any highly  dangerous confrontation.  It would only be used as an alternative to firing such a weapon.

In short order the police ceased using physical force to overcome resistance and in it's place used their Tasers to exert control.   It is now the first option and it's used  in circumstances where there would be no suggestion of resorting to use of a police firearm.

There is a danger that a " drunk tank " could morph into a common holding pen to contain people the police wish to question at their leisure.   Instead of containing people in the safety of a police cell, the use of what could be termed a " civilian concentration camp "  would be an increase in police powers that could easily be abused.

We have a problem with drunks on our streets.   It is important that curbing that problem does not create a situation that further erodes the concept of civil liberty !

Innovative thinking !

The New South Wales government has extended travel discounts to overseas students studying at university or TAFE in the Illawarra, Hunter or Greater Sydney areas.   A 35% discount will apply to all forms of public transport.    This  will be trialled over a twelve month period with the expectation that it will become permanent.  It will likely involve a saving of $ 811 a year for the average student.

Education has become one of the industries that attract dollars into the Australian economy.  Not all overseas students come from wealthy backgrounds and concessions to make life easier will be welcomed by middle class families struggling to afford an opportunity in life for their children.   We already deliver fare relief to Australian children and this new scheme is simply extending a level playing field.

Some student bodies have expressed disappointment that it will not apply to those buying daily tickets.  To access the scheme, students will need to buy quarterly or annual tickets.  Concern has been expressed that there are gaps in the teaching year, but the scheme's application to quarterly tickets is designed to accommodate that problem - and students who remain in this country during teaching breaks will still have a need to use transport.

Access will require the student to apply for the concession through his or her educational provider.   It will only be available to genuine students and this formality will prevent rorting by those who do not qualify.  The concession pass will be a valuable document and each student holder will be responsible for maintaining it's integrity.

A lot of things have changed in the past few decades.  Globalization has altered the manufacturing spectrum to Australia's disadvantage.   We are a high wage country and the western world has seen an exodus of traditional manufacturing jobs to low wage countries.  One of the growth areas that has emerged from globalization is the expansion of a middle class in Asia and with it an urge to seek advanced education levels for their sons and daughters.

Our universities and TAFE system meets world standards and Australia has become a magnet for young foreign students because it is seen as a safe country with a welcoming attitude to it's educational institutions.
In particular, the University of Wollongong has excelled in taking up the challenge of providing high class student accommodation in the city centre.   This initiative to make public transport more affordable will be another step in selling our university's appeal to an ever widening world.

Why ?

It is absolutely frustrating when the government announces a smart new health initiative, puts it in place and it works brilliantly - and then for no logical reason decides to pull the plug and withdraw it from vast numbers of people.    From this coming January,  "Telehealth" will no longer be available to the people of the Illawarra, nor to all those living  a similar distance from Sydney.

The aim of Telehealth was to encourage patients to get the expert attention provided by specialists in coordination with their general practitioner.   It enabled GP's to setup a conference with a specialist from within their own consulting room, using a video link to deliver sight and sound.   The GP would conduct any physical tests required by the specialist and with the coming of NBN's broadband - this seemed to be the way medicine would be delivered in the twenty-first century.

The benefits were obvious.   The patient was more relaxed in the familiar surroundings of his GP's rooms. Removing the necessity of many hours travelling to Sydney and return would make more patients likely to agree to see a specialist - and this was touted as one of the main reasons for expanding Telehealth on a national basis.

The linking of patients with specialists by way of their GP's attracted a Medicare payment and it seems that this must be the reason for the cutback.   Illawarra patients will be excluded from January, unless they are part of an Aboriginal  Medical survey or are residents in aged care facilities.

This will impact on certain members of the public more heavily than others.   The old and infirm and those who do not drive will be reluctant to undertake a train journey which will probably include a bus interchange to get to a specialists rooms in Sydney.   The whole impact of modern medicine is to get patients checked earlier to prevent rather than merely try and cure diseases.   This flies in the face of the advertising that health pays to persuade people to use the health system as a preventive measure.

There is little point in GP's handing out referrals to specialists if they know that their patient will not take the matter further.    Telehealth had all the advantages of combining the efforts of patient, GP and specialist to deal with emerging health problems - and in many cases - to prevent them advancing to the stage where expensive hospital care became involved.

This was an initiative that was brilliant - and it was working well.    Many will be asking why we are walking away from a progressive idea ?

OOPS !

It must be embarrassing for New South Wales Treasurer Mike Baird to have to admit that someone goofed when they did this state's sums - and a billion dollars suddenly reappeared to take the bottom line from deficit to surplus.

Now comes the use of spin to explain away that little mistake.   It seems that we have gone from a deficit of $ 337 million to a surplus of $ 680 million because of a few spreadsheet mistakes, incorrect data entries and faulty reconciliations - and we are assured that despite the impression of a surplus, we are really still in deficit because it is only Federal grants that are propping up the bottom line.

That seems a strange way of thinking.  The whole system revolves around a complicated network of monetary exchange.   The Feds collect the GST and reimburse the states according to a formula and across the entire spectrum of services there are shared costs.   Money changes hands as both the Federal and state systems reimburse one another within a complicated memo of understandings.

The sticking point will be the savage cuts imposed on health and education to relieve that expected state deficit.  The Opposition will demand that they be reversed, but both these services have been expanding beyond the state's capacity to pay - and it is time they faced a reality check.    Reality decrees that we must work smarter and cut out waste to deliver more efficient health and education services and these budget cuts will ensure that spending is closely examined to give good value.

In recent decades, New South Wales has lagged behind the other eastern states.   This has been evident in most aspects of life.   Plans for extending the rail system have been announced - and then cancelled.  A lot of bad mistakes were made in trying to improve the arterial road system within Sydney.  Inertia ruled when changes became necessary to bring trading conditions for industry into line with overseas expectations.  We simply failed to perform to an expected standard.

A new government in it's first term has the opportunity to reverse that inertia. It may not be popular to trim back some services, but money needs to be spent where it will do the most good and that means putting every avenue of expense under the microscope.   Not only do we need to reduce slothful spending, we also need to start grading the state's needs in order of priority - and stop avoiding decision making to get them under way.

So far, some of the signs are good.   Work has started on a long promised railway extension.  Darling Harbour is about to close for a rejuvenation that will include much needed convention facilities,  The Sydney ferry fleet is in private hands and expansion plans are well advanced.   A major project is starting to create a new business centre in the inner city, utilising the old gas works site at Barangaroo.

We urgently need to settle the long delayed question of Sydney;s second airport, but most of all the entire regimen of business administration needs a shake-up.  There are too  any outdated laws and red tape stopping the creation of new business or the expansion of existing companies.   A breath of fresh air through the labyrinth of regulations that impede all forms of progress is long overdue.

This is the twenty-first century.   Sticking to the old ways of doing things is no longer tenable !

Price war in Australian skies !

It looks like the " bums on seats " war to attract airline passengers is hotting up.  Virgin has bought a sixty percent share in discounter  " Tiger " and is building a liaison with Singapore Airlines to make the right connection to the rest of the world.   This will face off against Qantas and it's tourist subsidiary - Jetstar, which are in the process of forming a working liaison with the growing airline giant -Emirates.

Maintaining a healthy bottom line has seen the demise of many big name international airlines.  Equipping an air fleet with the right mix of planes is an expensive business and the cost of jet fuel can surge unexpectedly. As things stand, Qantas has a firm grip on air travel within Australia and operates that at a profit, but it's overseas service runs in the red.  Jetstar is now competing with Qantas economy seats in taking tourists to overseas destinations and some people think a clear division between " discount " and  " business/luxury " services is under way.

Airline passengers are finding it rewarding to " shop around " when booking a flight.   There are so many " deals " on offer, usually accessed on the Internet that a lot of money can be saved by researching the best prices in comparison to just booking a seat on a scheduled service.

We have come a long way from the days of the old " two airline " policy.   That was a time when airline seats seemed to be under some sort of price control - and there was no difference in price whether you booked with Ansett or TAA.     Both were expensive, given that Australia is a big country with it's population centres separated by long distances, and not served by fast trains or any other type of fast transport system.

It seems likely that this coming ticket price war will be healthy for passengers wallets, but it will deliver a question mark to those who live in country Australia.   The big, high volume traffic routes are between the three major cities on the east coast.  Getting to those hubs from regional cities and towns is so far unresolved, and this raises questions about the future of services to Sydney's Mascot airport - which combines overseas and domestic travel with feeder services from the regional centres.

The question is - can Mascot accommodate this volume of traffic ?    Melbourne had a similar problem and solved it by upgrading Avalon as it's second domestic airport.   So far, no decision has been reached on the site of a second Sydney airport and when that is attained, it will probably be well over a decade of planning and construction before the first aircraft touches down on that new runway.

It must be a nightmare for the airline industry in trying to put together a master plan to integrate local and overseas travel, knowing that Australia's biggest city and the lynch pin in the east coast hub has a bottle neck that shows no sign of being resolved.

It seems to be a case of politics taking precedence over the needs of the Australian transport industry !