An End To " Franchising " !

Luke Foley's plan to make firms granting name franchise licenses available to entrepreneurs responsible for any shortfall in the pay paid to their employees would probably see the end of this business model in the Australian workplace.

Franchising has allowed thousands of small operators to launch their own business and prosper because a winning formulae is being duplicated across the nation.  Customers are attracted because the trade name is nationally known and respected and the franchisee is guided to duplicate the display, service and signage of the original enterprise.  It has the advantage that national advertising ensures a steady customer stream and that reduces the business risk.

Franchise arrangements are widespread in every shopping centre and include businesses selling international brands of petrol, bakeries and of course the many fast food outlets that include McDonalds.  In more recent times, the services offered have widened.  Today we find franchise operators cutting lawns and servicing cars.

They range from spacious operations with multi staff to Mum and Pop type businesses tucked away in arcades but these are people who have taken an opportunity to be self employed.  In recent times, there have been prosecutions where casual staff working for franchise chains have been subjected to  exploitive hours and paid less than the gazetted hourly rate.  In many cases, overtime payments have been ignored.

Foley is proposing to make the firm owning the franchise responsible for all aspects of pay - and even talking of prison terms for what is really " wage theft ".  Quite obviously, Luke Foley simply does not understand the basics of business and the sheer impracticability of a franchise owner being asked to take legal responsibility for businesses that they neither own or directly control.

Not all who take a franchise are competent business people.  Some are over confident - and some are plain lazy and fail to find favour with the public, and they are no less responsible for paying the correct wages to employees as anyone else starting a small business.  The fact that they are running a franchise has nothing to do with it.

As we have seen, the shortage of jobs has many people receiving the dole welcome cash in hand arrangements far less than the stipulated wage and we have always had a burgeoning black economy in this country. Unscrupulous employers sometimes take advantage of such conditions - and are open to the full force of the law to atone for such law breaches.

Should Foley ever be able to implement his aim he would impose an impossible condition on the franchise system - and it would quickly evaporate.  Without it, there would be massive gaps in the business community that serves us so well today.

Fire Safety !

The aftermath of the Grenfell Tower disaster in London sends a long shadow.  About one thousand five hundred tower blocks in Sydney are fitted with a similar flammable exterior cladding and pose an unacceptable risk to residents.   The city will receive a safety audit and where this danger exists compulsory removal will be ordered.

This is shaping up to be a financial disaster for many families struggling to repay a crippling mortgage to secure a foothold in the Sydney housing price bubble.  Many abandoned the dream of a nice home on a block of land with a backyard and settled for a city apartment and bought on the understanding that the new building met all aspects of the building code.  By law, it must be inspected and approved by the responsible council before residents are allowed to move in.

This cladding adds no structural benefit to the building.  It is purely for cosmetic purposes and if removed and not replaced the building will present a rather ugly concrete shell.  As was evident in the London fire, if left in place it could allow a unit fire to escape and climb the outer walls of the building until the entire structure becomes a flaming torch.

Putting this right is going to involve costs that will in some cases top well over a million dollars.  What is painfully unclear, is just who will have to foot that bill ?  Unfortunately, it seems likely to fall on the shoulders of individual unit owners - and yet they are the least responsible party.

The building code requires the material used in a building to meet specified standards and it is the responsibility of the architects, the council that approves the plans and the builder to adhere to those guidelines.  When the building is finished, it is the relevant council that signs off and testifies that those conditions have been met.

Expect to see a lot of building companies, investment firms that finance new buildings and importers either go into voluntary liquidation or move their operation overseas as this debacle moves to the legal stage.  All concerned make their money as the new building is constructed and units are sold to future owners.  The only " sitting duck " is the council responsible for approving the plans and supervising the job and it is probably that imported building materials were deliberately described with falsified accreditation.

With everybody else ducking for cover, it is the individual unit owners who are left to cleanup this mess.  If the legal system throws the weight of rectification back on the councils that approved the buildings it may make some of them insolvent.  In many cases, this cladding has been used to renovate older buildings to give them a more modern look - further complicating the search for responsibility.

If nothing else, it highlights the need for a complete revision of all aspects of the relevant building code.

The " People " have spoken !

We are proud of the fact that we live in a " Democracy " but it seems exactly what that means is widely differently interpreted by many people.   The fact that who occupies the Treasury benches in parliament depends on a popular vote at election time seems to signify that the will of the people is decisive, but this can have a completely different outlook at local government, state and Federal level.

It is not unusual to have a different political party in power in Canberra and its opposition regime delivering government in a state capital.  Within each state councils of various political persuasions rule over the local affairs of the suburbs contained within their boundaries.  Each group can claim to be expressing the " will of the people " because they won office by popular vote..

Of course, that not how the system works.  Because of party politics the aim of each political party is declared in its manifesto, but that is a long term aim.  Most decisions are made with the aim of holding office at the next election.  The degree of opposition to the proposed measure has a greater bearing on how the party members vote.

We have just seen the New South Wales state government retreat on the question of forcing the amalgamation of councils to achieve economy of scale.  Two centuries ago what are now Sydney suburbs were originally villages that needed infrastructure to manage village life.   The local council was responsible for providing somewhere for residents to tip their rubbish, collect the " night soil " before sewers were connected and general keep the streets neat and tidy.  Getting elected to council was a convenient way of going on to higher office.

Today, many of those councils are facing bankruptcy.  The role of councils has changed and they face greater outlays and most have a greater amount of  need  far beyond their financial capacity. The only answer was amalgamation  to spread the financial load over a wider base and gain the benefit of pooling expensive machinery.  That offered the only hope of eliminating a huge backlog of unfunded work and keeping rates within residents ability to pay.

Public reaction was surprisingly hostile.   Huge numbers of people took to the streets in noisy demonstrations and attended public meetings.  There was fear that amalgamation would dilute local decision making and that council funds would be concentrated on renewal and expansion areas.  It quickly became evident that to continue pursuing amalgamation would put the longevity of the state government at risk.

Those mergers already in place will remain, but no further amalgamations will be forced.   The will of the people appears to have been decisive - but it will come at a cost.  Many smaller councils will continue to accumulate a backlog of urgent work that remains unaffordable and it is likely that some will eventually be unable to pay their bills.  If a council is forced into the bankruptcy court, the interesting question is who will pick up the pieces -   and what will be done to rescue the ratepayers from lack of services ?

And most interesting of all.   Who will shoulder the blame for that fiasco ?

The " Fight " Over Water !

Cotton is a thirsty crop and it is suited to the agrarian conditions of northern New South Wales and Queensland.  It is being blamed for the mysterious disappearance of water from Australia's inland river systems.  The problem is that these rivers wind their way through Queensland and New South Wales before they empty into the great southern ocean in South Australia.  They therefore come under a number of state water management schemes.

For too many years each state granted water rights to agricultural interests drawing water from the inland river system until the flow failed to reach the sea.  It was imperative that action be taken and the Commonwealth stepped in and compulsorily bought back the water rights that exceeded reasonable usage.  Farmers allowed a more meagre water allocation had no option other than to manage their water use more wisely.  Drip irrigation replaced wasteful crop inundation and there was an expectation that the problem was being resolved.

This year, the scientists who evaluate the river system are reporting a strange anomaly.  Despite predicted rainfall in the catchment area the level of the inland rivers is not reaching the expected flow level predicted and in South Australia it is much the same as when the alarm was first raised.  This raises the question of what happened to the missing water ?

Suspicion is mounting that the big cotton farms to the north have greedily taken more than their allocation and that the New South Wales government has been complicit because the cotton crop is critical to the state's economy.   Inspectors who manage water use report that water gauges have been tampered with and hidden pumps have been drawing water far in excess of the allocations granted.  The opportunities exist over the many miles the rivers run through country almost devoid of human occupation.

This is water that belongs to the Australian people because it has been bought and paid for by government taxes.  It was public money that bought back those water rights from farmers and that public money bought the expectation that we would achieve a healthy inland river system despite the encroachment of global warming.

The pundits have been predicting that water will be the source of future world wars.  The worlds great rivers run through many countries and as rainfall patterns alter desperate people will choke off flow to others downstream by building dams and running off supplies for their own use.   Most of these rivers start from melting glaciers - and these glaciers are themselves melting away.

We are fortunate that Australia is an entire continent with no land border with another country.  Our rivers start and finish within Australia.  Their management rests entirely in Australian hands.  We need to crack down hard and see that quotas are maintained and use the punitive power of the Commonwealth to achieve a healthy river system.   Those illegally taking water must face the full force of the law !

Parabiosis !

The word " Parabiosis " is likely to become very familiar to the elderly searching for the elixir of life or hoping to find the Fountain of Youth.  Back in the 1950's a researcher in the field of dentistry conducted an unusual experiment when he was trying to prove that tooth decay was caused by the sugar in food and not by some inherent human deficiency.

He cut small patches of skin from a pair of lab rats and then sutured the animals together at the site of the wound.  After a week of being so joined the animals blood vessels began to merge and the result was two rats whose  hearts were pumping blood around a shared circulatory system.  This scientist also noticed that older rats that shared blood with younger rats  lived four to five months longer than similar old rats which did not.

That was enough to get many pharmaceutical companies very excited.   Any company that can market a drug that  extends life will have found the pot of gold at the end of the rainbow.  Dozens of papers have been printed detailing the procedures that have been tried with animal research and it seems conclusive that this cross fertilization even operates across species.  It can help repair spinal chords, rejuvenate pancreases and even impair neuron growth in brain cells.  The walls of mouse hearts get thicker as they age.  Young blood can reverse that process as well.

Like Newton's famous " Law of Motion " it also works in reverse.  Wounds and damage in the younger rat exposed to parabiosis take longer to heal.  It can impair growth in younger brains and decrepify younger muscles.   It was also noted that the lab rats were not keen on this type of experiment and needed careful socialising to prevent them tearing each other apart.

No doubt this will be the base of promising future research and progress will inch its way forward. What seems to have been proved is the theory that an old body can gain benefit if the blood coursing through that body is also passing through the body of a younger person.    Perhaps the kidneys and liver of that younger person are doing a better job of removing waste matter than their aged counterparts in the older body.

It seems highly likely that less ethical parts of the world will see an opportunity for profit.  No doubt entrepreneurs will offer " refreshing " holidays for rich old men and women where they will have their blood circulate through a younger person to gain benefit.    It is quite possible that participating in such renewal schemes may replace donating kidneys as a way of poor people getting an economic start in life.

If the results of the rat experiments holds true, it simply means that an improvement in the health of the older person is replaced with a corresponding   decline in the ability of the younger donor to recover from future maladies.  A trading of health - for money.

Crime - And Punisment !

When a criminal is found guilty and a judge hands down a sentence the term of punishment is for a known period of time, and at that conclusion they return to society.  Unfortunately, Australia has prisoners stranded on the island of Nauru and at a camp in New Guinea who have been convicted of no crime and yet are serving an indefinite sentence that may never end.

These people were victims of the lies told by people smugglers. Vast hordes were fleeing civil wars in many parts of the world and intermingled were " economic migrants " looking for a better way of life.  People smugglers took their money, crammed them on unseaworthy boats and dumped them on the Australian coastline.   They were coming in ever increasing numbers and the Australian government was desperate to halt the flow.   They vowed that from a given date no new arrivals would ever be settled in this country.

The people smugglers convinced many people that this was pure bluff - and some boats continued. These unfortunates were immediately transported off-shore and there they remain to this day, living in squalid camps with poor medical facilities and with the hostility of their hosts.  Their fate stopped new arrivals by sea but should Australia be merciful and allow them to settle in Australia the people smugglers would be triumphant - and continue their trade.

We have made massive efforts to find other countries prepared to settle these unfortunates - with little success. A swap deal with America may lower the numbers, but a stubborn residue remains and many have family members already settled in Australia.  Now it seems that the United Nations is critical of Australia because they believed they had a " deal "  whereby they gave help to settle the swap arrangement with America on the understanding that the residue would be settled in Australia.   They claim that the Australian government has reneged on that promise.

These people in island camps have been stranded there for years - and it can not go on indefinitely.  They are human beings and we are simply treating them as terrorists.   They deserve better - and the world is starting to criticise their inhumane treatment.  We have offered to give them money - and a free trip back to their original countries - but most refuse because they fear repercussions from the regimes in power in their old countries.

Perhaps it is opportune to involve the United Nations in a new approach to this world wide glut of refugees.  There are many islands dotted about the Pacific ocean that are uninhabited.  An offer to purchase one from the country that owns it to form a new refugee nation would be a way that found favour in earlier centuries.   It would need massive help from donor countries, but it could ease pressure in Europe and across the world.   Otherwise, we may eventually have to bite the bullet and settle these people in Australia.

Kindly Neighbours

A recent news story must have sent a chill through the heart of many people living apart from elderly relatives.  It concerned the discovery of two bodies in a well kept house in a fashionable suburb. This aged couple well into their eighties had become reclusive.   They shunned contact with neighbours and the old man was the sole carer for his wife, who was blind and suffering from advanced Dementia.

The police can only conclude that the carer died from natural causes and that his wife consequently suffered a lingering death when his supportive services ceased.  The anguish is unimaginable.  It would not have been a pleasant death and it certainly provoked a surge of reflection as many people thought of similar events that could be happening in the street where they lived.

Sadly, there was a neighbour who regularly knocked on the door to ensure that all was well with this old couple, but she was away on an extended holiday when this death happened.  It provoked the government to urge people to at least be observant when they have a reclusive old resident living nearby.   Even if attempts to make contact are being rejected it would be merciful to be aware that the milk delivery and newspapers were not being collected - or the lights failing to show in windows at night.  A report of concern to the police will ensure that such a suspicion will be quickly investigated.

A number of charitable services are already in place to fill this need.  Most are staffed with volunteers who make regular contact to ensure that the elderly person is alright.  It is usually the same volunteer and often this develops into a friendship.  That regular phone call develops into a welcome chat that banishes the loneliness into which some old people descend.   The problem is getting the recluse to accept initial contact in the first place.

In the distant past keeping tabs on the elderly was usually a task undertaken by the local doctor.  It is usual for the elderly to be reliant on some form of medication and obviously they need to have regular contact with a doctor for prescription renewals.   Most suburban general practitioners had part of the day put aside for home visits and were therefore in regular contact with the elderly on their books.

Today, such practices are more likely to be a clinic where patients take a number and wait their turn to see whichever doctor happens to be on duty - and that personal relationship is lost.   In fact some elderly have little contact with doctors and rely on the local pharmacy for both advice and medication.  In such cases, observant pharmacy staff can be the valued contact between that person - and the outside world.

Usually it takes a tragic death like this news story to bring the plight of reclusive elderly to public attention.   Many will make the effort - and some will be rather rudely rebuffed.   It is not unusual for the elderly to be very defensive about what they see as their " privacy " !

Hopefully, in some instances alert and attentive neighbours will enable intervention to prevent such tragic conclusions.

The " Spying " Game !

The days of the " Cold War " were the apex of  intelligence gathering by both the Soviet Union and the Western powers.   At sea this took the form of the sudden appearance of a Russian fishing trawler whenever mock naval battles were under way and for a time American U2 spy planes could overfly Russia beyond the range of that countries missiles to photograph secret military installations.

The development of satellites travelling through near space changed the game completely. Now all major countries have cameras in orbit and there is not an inch of planet earth that is not under surveillance.  We can be sure that the joint military exercise " Talisman Sabre " taking place off the Queensland coast will be under close observation by many interested nations and how the American and Australian troops are deployed will be carefully studied.

What is interesting is an openly hostile act by China.   A naval ship operated by the Chinese Liberation Army has sailed into Australia's Exclusive Economic zone in the Coral sea and is scooping up electronic traffic from International waters.    The Chinese have not used the subterfuge of sending a fishing boat to intercept communications.   This is blatantly a purpose built Navy type 815 intelligence vessel and it remains outside Australian territorial waters, taking advantage of the Law of the Sea which allows freedom of navigation in International waters.

It is that same law of the sea that China is ignoring when it comes to the ownership of the South China sea.  Surrounding nations have legitimate claims by proximity to their own coastlines but China is claiming the entire sea by virtue of an ancient map and this has been rejected by a United Nations court.    China has ignored that ruling and military fortifications on islets it has reclaimed are now a threat to shipping and aircraft movement.   When other nations pass ships through the South China sea they are warned that they are trespassing on Chinese territory.

Unfortunately, it now looks inevitable that this South China sea confrontation will be be the danger point of the future.  At present, the United States has the worlds most powerful navy, but China has created its first aircraft carrier group and has started work on a second.  In a decade or so, the Chinese navy will reach parity - and that will be a time of great danger for world peace.

 The problem is those artificial islets in the South China sea are now a reality and it is unlikely that the Chinese will willingly walk away and give them up to other claimants.  The best that we can hope for is for the status quo to remain unchanged.   The rest of the world continuing to sail shipping through the South China sea and China retaining the illusion of sole ownership.

Legal " Safety " Issues !

Australia has just had its first death from a faulty air bag !  Two cars collided in Cabramatta and neither the driver or the passenger in either car received life threatening injuries from the crash - but one driver was killed by the air bag that was supposed to save him from injury.  When it activated it threw shards of metal into his face and a small metal fragment pierced his neck and killed him.

Months ago a number of makes and models of cars on Australian roads were recalled because it was discovered that the air bags fitted to them had faults.   These came from a single Japanese manufacturer who had contracts with many car makers.  It seems that over time the gas used to inflate the bags in a crash intensifies to the point that metal fitments are carried forward.  It has been described as like firing a shotgun.

The trouble with recalls it that they are mandatory.  They rely on the cooperation of the user and some people are too busy - or too apathetic - to get around to having the problem fixed.   That is like playing Russian roulette.  Not all the air bags produced with that fault deliver danger when activated, and those that are safe now may not be safe in the future.   Unfortunately, it is the type of danger that a simple, low risk tailender in traffic may convert to a road death statistic.

There are probably very big numbers of cars on Australian roads which have not responded to that recall and eventually most of them will pass onto the second hand market.   It is not a nice thought that the car you may think of buying when one of your children reach driving age may have a hidden fault that could describe it as " a death trap on wheels " !

There is a very simple way of weeding out cars with unresolved air bag  defects but it would require the cooperation of all the state registration authorities.   It would need the addition of air bag certification to become a part of the " pink slip " registration check that all vehicles more than four years old must undergo each year.

Ideally, the licensing authority doing that check would need to consult a distributor for the make of car and have that models individual identification body number checked against the brands computer records of air bag replacement.   Any car that has not responded to the recall would be ineligible for registration until that work was done.

The purpose of that pink slip inspection is to determine that the vehicle presenting for registration has the required lighting in good working order, that the tyres conform to legal standard and the brakes work efficiently.   Surely an inspection of the air bag system would be a reasonable extension of that safety check.

Those Greedy Banks !

Since the start of the " Great Recession " of 2008 people who take their superannuation as a lump sum at retirement have had a problem.   They need to find a safe " investment " where not only will it provide living expenses for the rest of their life but will accumulate to take care of inflation.  

A vast trove of financial advisers claim the expertise to provide those services but it seems that the advice some give is tinged with self interest.  Many forms of investment offer commission as a reward for signing up retirees to their offerings and advisers may be temped to suggest whatever brings them the best reward rather than what best suits their clients interests.

Many retirees choose to manage their own retirement money and opt for the method used by their parents - and probably their grandparents.  Entrusting their money to a secure term deposit with one of the banks.  Not only were the banks guaranteed by the government but the money was safely invested in housing loans and financing Australian industry.  They also have the satisfaction of knowing at the start just what rate of interest will be paid during the term of that deposit.

Unfortunately, one of the first victims of the recession was interest rates.   Cheap loans probably fuelled the housing price bubble, but they have been disastrous for investors.  In some parts of the world interest rates have gone into negative territory.   The customer is actually charged a fee to keep their money in a safe bank account.

Fortunately, that did not extend to Australia but people who were used to getting an interest return of better that five percent on their money were dismayed to find half that was probably the best offer.  There are even promising signs that interest rates may soon rise but achieving the best rate possible requires individual dickering with each financial institution.  The rates change according to the length of the term deposit.

There is also an unwelcome practice adopted by the money market.   When a term deposit is reaching its renewal date the banks give their customers just seven days from its termination to withdraw the money in its entirety, add or change the amount and select a new deposit time frame.  This notice
advises that otherwise the balance will be reinvested for the same period as the expiring loan.

Astonishingly, the interest that will then accrue is less than that which applied to the maturing loan and less than what is offered in the accompanying schedule of interest by both volume and period. If the maturing loan was gathering interest at 2.5%, the bank intends to reinvest it at  just 1.5% if the investor does not make contact and instruct.   The accompanying notice of interest offering clearly indicates that a deposit of that magnitude for that period of time would attract that same 2.4% interest rate for that same period.

The banks are choosing reinvestment at terms that are in their own interest and totally disregard the best interest of their customer.  In fact, they are posing a penalty for failure to instruct.  Any change outside that seven day period will attract special punitive fees and charges.

It can only be construed that the greedy banks are capitalizing on elderly depositors who may be hospitalized or afflicted by the onset of Dementia to miss a renewal date. For whatever reason, they take the chance to lock in that money at a highly uncompetitive rate for its owner but which improves their own better bottom line.

It may be legally acceptable, but the moral aspect is another matter !

Killer Cops !

Usually the death of a citizen at he hands of police in America involves the colour of the victims skin.  This time it was the unexplained death of a white woman - who happened to be an Australian shortly due to marry her American fiancée - who had called the police for her own protection.

Justine Damond heard suspicious noises in the ally behind her fiancee's Minneapolis home.  She called police and waited for them to arrive.  A patrol car containing two officers made a silent entry into the alley, hoping to surprise any intruder.  Seeing the police arrival, the woman approached the drivers window to speak to the officers - and was shot by one of the police.

Justine Damond was unarmed - and wearing her pyjamas.  The police applied first aid and called an ambulance, but she died at the scene.  This death was immediately placed into the hands of the Minnesota Bureau of Criminal Apprehension (BCA) for investigation.  The police officer who fired  the shot was sitting in the passenger seat and fired across the driver and through the open drivers side window.   It quickly became evident that neither police had activated the cameras attached to their uniforms or that the dash camera in the police car recorded this event.

The officer who fired the shot was from a Middle Eastern country from which refugees were flowing to other parts of the world.  He was the sole member of that nationality recruited to that city's police force and he had been involved in previous disciplinary incidents.  He has refused to be interviewed or to make a statement and that appears to be his right under American law.

We are now hearing that just as this police car arrived in the alley the police were startled by what may have been fireworks nearby.  This was reported by the cars driver and supported by the base radio operator.  The fact that the shooter is maintaining  silence means that a proper investigation of this incident is becoming impossible.

Law enforcement is a powerful political lobby in the United States.  It is well known for using that power to shield police from the consequences when deaths have occurred in suspicious circumstances.  In particular, the shooting of blacks who were unarmed and posing no threat to police are often moved to jurisdictions where a police conviction is unlikely.  It is quite possible that this Minnesota killing will never reach a definitive conclusion.

One of the most compelling legislative acts was to compel police to wear personal cameras on their uniforms and have recording equipment viewing the progress of their vehicles.  The fact that any incident would have a factual record was supposed to deliver justice and is negated if those cameras are not switched on.  Perhaps the time has come when the value of modern science makes camera use mandatory.

It is now possible to automatically start the recording device at the start of a shift and remove it for the archives at its conclusion.  It should be a criminal offence to interfere with those police cameras in any way and this would limit the opportunities for police to commit any law breach without a record.  That will probably be opposed by police unions, but it also protects police from false accusations.

That senseless killing in Minnesota illustrates the need for automatic camera activation.

Bolt Holes !

The Census does more than just count the number of people living in Australia.   When the statistical analysis people do their work it reveals a lot of hidden data that allows for more in-depth  plans on  how this country is run.  The latest census confirms that ever expanding home prices are sharply reducing the proportion of Australians who are home owners.  It showed that home ownership is down seven percent over the past decade for the 35-44 age group.

Another surprising statistic is that Australia has 360,000 vacant homes.  Were these to become available on the rental market they would go a long way towards easing the rental shortage which is hitting potential young families with a double whammy.   Too many people seeking too few rental properties, pushing weekly rent ever higher.

Just about every family knows of a house in their neighbourhood that never seems to have an occupant.  At one stage is may have been offered at auction or perhaps there is a memory of " for sale "  signs on the front lawn, but rumour has it that it will be demolished and replaced with a new home. The long delay is often attributed to councils arguing over plan approvals.

This phenomenon really started back in 08 when the last recession crisis brought fears of a repeat of 1929.  Australia fared better than most of the rest of the world.  There was total panic in a lot of countries.  The very wealthy were looking for a bolt hole where their money would be safe - and Australia looked like a good bet.  Buying a Real Estate property seemed a safe way to " park " spare cash overseas and in many cases that same foreign investor tried to secure permanent entry rights in  case the recession deepened into a world depression.

Holding Australian property remains a good bet.  The interest offering on bonds and other forms of fixed deposits are abysmal but property in Australia keeps right on rising, year after year.  A house on land that is kept vacant may deteriorate, but the value of the building block beneath continues to rise in double digit figures.  The actual ownership of many of these properties is usually listed in a remote tax shelter.

Putting the property on the rental market spooks many overseas investors.  It would accrue profit that would draw the attention of the tax authorities in both Australia and their home country and they prefer to keep the source and type of their investments confidential.   It will probably take specific legislation to penalize vacant homes to change that position.

Perhaps those with a long memory recall the extreme housing shortage at the end of the second world war.  At that time it was common for desperate people to break into a vacant home and establish " squatters rights ".  At the time, the law condoned this and the owner basically had to negotiate the terms for them to voluntarily depart.

The census has shone the spotlight on the problem. Now the politicians must decide whether to use the carrot - or the stick - to resolve this reluctance to open a closed market to relieve a dire rental shortage !

Delivering a Message !

The attraction between a man and a woman is a very powerful emotion.  The history books record instances when thwarted romance has led to war between countries and sometimes rulers have given up their throne - for a woman.    In everyday life we see this cause family breakups.  Many a divorce starts with one of the partners finding more fulfilling sex with someone else.   In the vast majority of cases it is the lure of forbidden sex that starts the downward spiral.

The modern business world throws men and women together and increases temptation - but certain rules apply.  It is generally understood that it is unwise for a relationship to develop between a person in authority and someone who reports to that person.  Many see that as grossly unfair.  That person in authority has coercive powers and the ability to grant benefits.  It is not an equal relationship, specially when one of the lovers is married to another person.

Just such a situation has been working its way through the court system.   It involved a woman named Amber and her boss named Tim, who was the CEO of a media company. Amber had. the position of Tim's " executive assistant " and as such drew an impressive salary and had a company credit card.  She was authorised to travel and entertain and sign off on company expenses.  It was a position that held both prestige and power - and this working relationship developed a personal aspect - they became lovers !

Many months later, reality intervened. Their interconnection was no longer secret and was embarrassingly known in company circles.  The company suggested that Amber terminate her employment and offered several hundred thousand dollars severance pay with the condition that she sign a confidentiality agreement.  Reluctantly, Amber agreed.

Sometime later, she had second thoughts - and went public.  It seems she was furious that the company had chosen to pardon Tim for his lapse of judgement and retained him as CEO while it had cast her aside.  She released a number of damaging assertions and took the position as the" wronged woman ", gaining support from feminist causes.   The case became a celebrity issue in the nightly news.  Her former employer hit back with accusations of  inappropriate spending when a credit card was under her control.

This matter has finally ended in a judgement by the Supreme Court.   The court found that Amber had made allegations she could not substantiate and acted unreasonably with the media company. She was ordered to pay her old employers costs on an indemnity basis  which is higher than costs usually awarded in legal disputes.   She will have to pay the entire bill, probably running into hundreds of thousands of dollars.   Amber reports that this will involve her bankruptcy.

It is not a happy ending for Amber.  The publicity has permanently closed any chance of obtaining an executive assistant position with any other employer.  The Supreme Court seems to have delivered a message that when someone signs a confidentiality agreement and accepts compensation they are expected to stick to the terms agreed.  It remains to be seen if her old employer forces her into bankruptcy  - or lets the matter drop.

This case did not deliver a moral judgement on love affairs between people in authority and underlings.  If that was the intent, then it failed.   Those that fail to resist that ever present temptation simply invite disaster - and it usually follows !

Selective " Clean Air " Legislation.

It seems that a shiny new car will soon cost us several thousand dollars more because its engine will be required to produce less noxious gases and travel more kilometres on the same amount of fuel.  The medical profession applauds - and so do the scientists who worry that the pollution we are pumping into the air is making this planet hotter - and leading to a thermal disaster.

Many people remember when just about every Sydney home had a concrete block incinerator in the backyard.   It was the custom to burn household rubbish until that was banned as a clean air measure.  Now just having a backyard is a fond memory.  Sheer numbers have forced most of us to live in a " vertical village ".

It is a matter of pride that Sydney is one of the most important ports of call on most cruise ship Pacific itineraries.  Across the entire world when people think of Australia they envisage our famous harbour bridge and the towering sails of the Opera house.  In fact we are turning cruise ships away simply because the numbers have grown too big for the amount of wharf space available in Sydney harbour.

One of the problems is that the new ships are too big to fit under the harbor bridge.  It helps that the smaller ships can dock at the White Bay cruise terminal, but for some strange reason this lacks the ability for shore to ship electricity supply.  As a result, the ships must keep their engine running while they are in port and residents are subjected to noxious exhaust fumes from the almost crude oil fuel their engines consume.  Not only does this settle in harbourside suburbs, most of it drifts to the outer west where air quality is already poor.

Legislation forced the cruise ship industry to install additional fuel tanks and change to a low sulphur and low nitrogen oxide emission fuel while in harbour but this has not produced the hoped for relief. Hooking ships docked at White Bay to the shore electricity supply is back in contention and a three year parliamentary enquiry is predicting that it will cost a whopping twenty-seven million dollars to create this facility. Most people query that costing.

Whited Bay is both a residential suburb and the home of heavy industry.  The demand from a cruise ship would be similar to several tower blocks of apartments - and these are being constantly added without power supply problems.   This parliamentary enquiry also disclosed that our legislation allows cruise ships to use fuel that has 3500 times the sulphur level permitted for use in diesel cars and thirty-five times greater than the level permitted in European ports.   It is a fact of life that ships engines are not designed to reduce emissions because they spend most of their time away from land and sailing the worlds oceans.

These same cruise ships that visit Sydney also dock in other world ports where stricter emission rules apply.  We need to bring our port requirements to world standards but it is a serious omission that we have a cruise ship terminal that lacks shore to ship electrical facilities.  It sounds as if this parliamentary enquiry delivered a finding that suited the politicians !

Bike Sharing Bedlam !

Sydney is about to get a fleet of hire bicycles to speed up inner city transport.  The advertising blitz promises that this will be a cheap and easy way to make inner city journeys but many previous attempts to get Sydney folk on two wheels failed dismally.

In theory, all you need to do is tap your credit card on the bikes " reader " to unlock it, put on the safety helmet sitting in its parcel rack - hop on and pedal away - and at a cost of just $ 1.99 for thirty minutes hire.   At journeys end, you simply use your credit card to " tap off " and lock the bike, and leave it.   The bikes are electronically tracked so the company that own them know instantly where they are located.

Of course, in reality it is not that simple.    You first need to have your credit card registered with the bike company and that involves a registration fee of $99 - which is fully refundable.   It is also imperative that your credit card account is fully operational and without restrictions, and that you understand the necessity of " tapping off " to end the hire period.    It seems inevitable that in a crowded city like Sydney there will be some parts where communication glitches are common.  People with mobile phone are well aware of that problem.

The laws in New South Wales accords bike riders equal rights with motor traffic, except that bikes are totally barred from being ridden in the road tunnel system.  Adults are not permitted to ride on footpaths - except when accompanying children - and those riding hire bikes must obey all the normal road rules that apply to all forms of traffic.   It has yet to be determined how parking police will react to deactivated hire bikes left littering footpaths and kerbside parking bays.

Some people may be reluctant to don a safety helmet that may have been previously used on unwashed heads.  There is also a size problem.  Obviously, opting for the middle ground will mean helmets too big or too small for many people - which raises both a comfort and safety issue.  Many will simply leave the helmet in the parcel rack and ride bare headed - and risk a fine from traffic police.

The main aim of this hire scheme is to provide a way of moving between points in the inner city.  To reach destinations several city blocks apart usually either means a tiring walk or the use of public transport.  Easier - and faster - to hop on a bike and pedal those distances.

That raises the question of rider competence - and that will worry many people.  It is often said that if you learn to ride a bike as a kid, you never lose that skill, but the Sydney traffic is a very dangerous place and the thought of inexperienced riders weaving in and out of traffic could be a nightmare.  It also raises the matter of rider indemnity.

When we drive a registered motor vehicle we have the protection of compulsory third party insurance - the costly " green slip " cover we need for vehicle registration.   Should a bike rider cause an accident in which someone else is seriously injured they would be personally liable for any damages awarded by a court.

That is something the wise would be advised to consider when deciding to use this new form of hire transport !

Misery !

Ask the average person how they would describe a " third world country " and many think of regular disruptions to the electricity supply.  Here in Australia the flow of electric power has always been readily available - at the flick of a switch.  Today - in this " lucky " country we have many citizens too frightened to activate that switch.

We are warned that our next power bill will probably rise by as much as five hundred dollars a year.  Many a household budget simply does not have that sort of leeway - and accordingly desperate measures are in place to use less power.  Some people wrap themselves in blankets at night to avoid using a heater.  The elderly risk catastrophic falls because they have switched off all unnecessary lights as an economy measure.  We are even seeing death by carbon monoxide poisoning when people bring outdoor BBQ's inside and light them to gain a little warmth.  There is talk of insufficient power to meet our needs when the scorching heat of summer arrives.

We are told that planet earth is overheating because we are burning fossil fuels.   Oil is a fossil fuel and we use huge quantities of that to run our cars.  It seems that we are on the cusp of having electric car fleets and when that happens there will be added pressure on power generation to keep their batteries recharged.   Our whole world with its reliance on electronic communications is fuelled by electricity and most of that is generated by burning coal.

Public opinion has turned against coal.  Quite irrationally we have been closing down coal fired older power stations without having an economic alternative in the wings to replace them.    Wind and solar have been the great hope, but so far they are unable to deliver the base load we need to keep the lights burning during the hours of darkness.

The anti coal lobby is shrill and it is now almost impossible to get a rational discussion on creating a new coal fired power station.   The banks are under pressure to deny finance and yet modern power generation using coal can deliver the cheapest form of electricity with far less carbon dioxide pollution than the old coal fired monsters of yesteryear

It is all a matter of balance.  Wind and solar continue to takeup more of the load but we still need a load base to ensure continuous and reliable electricity supply, and at this stage that can only be coal. As alternatives advance they are used less and would only probably come on line when a weather peak or other unexpected event increased demand.   As things stand, we have no backup standing ready and in such an event the only alternative is rolling blackouts.

We have a responsibility to generate power at a price ordinary people can afford.  The misery we are inflicting is out of kilter with the amount of Co2 that would be released by using coal in a modern generating plant as an interim measure !

Subsidized Housing !

It is now obvious that many people will be denied the benefit of home ownership because Australian  home prices have surged beyond their affordability level.  We have vast waiting lists for what we call " public housing " - rentals that are government owned and available to low income earners for a fixed percentage of their income.  That queue stretches back years.

Perhaps we should give some thought to the housing system adopted by the government of Singapore.   That island state seems to be a model of efficiency and for many years it was ruled by the elder statesman, the late Lee Kwan Yew who became prime minister when it gained independence from Britain.   Today, four out of every five Singaporeans are home owners and that seems to go a long way in creating a calm and settled state.

Singapore is a tiny island with a vast population made up of three ethnic groups - Malay, Chinese and Indian, plus nationals from most world countries.  Ownership of building sites remains in government hands and the actual homes erected are subjected to a ninety-nine years lease.  The government is constantly building tower blocks and the three bedroom family apartments are made available to applicants on the waiting list.  In many cases, this is selected off the plan and the applicant waits for the building to commence some months in the future.

All such homes are on the basis that the resident will live there on an owner/occupier basis.  On average, a three bedroom apartment has a cost of $ 217,000 and the applicant can tap his or her superannuation for the required deposit.   The Singaporean government wisely surmised that a person with ownership rights is a more settled and content citizen.   They are creating a capital asset that will ensure that along with their superannuation they will be secure in their old age.

The government allocates this housing in direct ratio to the percentage of Malays, Chinese and Indians in the community, so that each tower block represents that same mix of nationalities, ensuring that no ethnic enclaves are possible.   Families are encouraged to " downsize " to a smaller apartment when their families grow and dissipate and the rules require this same ethnic mix to be maintained.

Because this is cost subsidized there are rules that apply. An owner/occupier may not move or sublet in the first five years of tenancy - without permission.  Obviously, this is to prevent these subsidized units being used for a quick capital gain by making them available to others wanting to jump the queue.  They are intended to make home ownership within reach of the masses.

This would not eliminate the need for " public housing " .   It would appeal to those with a settled lifestyle and ambition, but purely rental accommodation is still necessary for emergency cases and those unable to conduct their affairs in a solvent manner.    It could be a useful addition to settling the low paid in close proximity to the work opportunities to which they are presently denied !

The Enigma that is " Garrawarra " !

Garrawarra is a special purpose hospital that was built by the government when Tuberculosis was ravaging Australia.   That was a highly contageous disease and the treatment was prolonged bed rest. The hospital was sited deep in the National park between Sydney and Wollongong and fell into disuse when antibiotics almost eliminated Tuberculosis in this country.

Today, Garrawarra is a major nursing home, but it serves a very special role.  It accepts the patients other nursing homes reject because of tendencies of aggression.  Unfortunately the ravages of old age bring out undesirable traits in some people, particularly those with signs of Dementia - and that can be unacceptable to the equilibrium of normal nursing home life.

Government regulations are very strict when it comes to the care of nursing home patients. Laws ensure that they are treated with confidentiality and dignity and that they maintain most of the amenities that would exist in their own homes.  All nursing homes are subjected to a licensing test and without a license they are not permitted to stay open and operate.

It seems that Garrawarra has failed that test because there has been evidence that some residents are showing aggression towards other residents or staff.  There are accusations that some have been roughly handled and that restrains have been used and it seems possible Garrawarra may have its license revoked and be forced to close.

The government would be advised to think long and hard before it takes that step.  If Garrawarra closes its doors a number of highly difficult older people will revert to the care of their loved ones because they will be denied normal nursing home beds.  No doubt some will prove too difficult for relatives to safely handle and will end up sleeping rough on the streets. Inevitably, some will end up in the prison system.  Garrawarra serves as an important sanctuary.   The last resort for very difficulty people - somewhere between hospital and a prison.

Because of that it should not be classified as a " nursing home ".   It needs a new and very different description to serve the role it plays and it probably requires a separate act of parliament to bring that into being.  Nursing homes are not permitted to dose patients with drugs to keep them quiet and yet that would seem to be an essential where disturbed people are concerned.  Restraints are sometimes necessary to prevent self harm - and that is precisely where Garrawarra differs from the normal model of aged care.    The people it serves are all unacceptable in the normal nursing home spectrum.

The dedicated staff do a marvellous job of looking after difficult people and it would be essential that whatever this new look facility is called receives firm oversight.   We need to create the care regime that can adequately cater for the " misfits " that our usual nursing home system rejects.

The Tax Man Cometh !

This amazing home price bubble has saved the bacon for many families reaching retirement age without a sufficient superannuation nest egg to see them through into old age.  That suburban home that they bought decades earlier for what would today be termed a mere pittance is suddenly valued at more than a million dollars in many Sydney suburbs, and amazingly - the family home is not subjected to the capital gains tax.

It seems that capital gains is a rather curious tax.   If you buy shares in a public company and their value increases the government decrees that the tax man will take a share of the profit when you sell those shares.  Of course, if the shares decrease in value and you make a loss when you sell, the tax man has no interest in contributing compensation.

One of the more interesting innovations of this twenty-first century has been the concept marketed by Airnb to allow homeowners with an unused bedroom to gain income by renting it to tourists who would otherwise seek accommodation in a hotel.  In some cases the homeowner offers bed and breakfast and it is not unusual for the entire house to be on offer if it is in a prime tourist area.  This is subjected to a wide mix of council regulations and may be contained with restrictions.

It is also open to interpretation by the tax man.  It is quite possible that if parts of that house are being regularly rented out for profit that it may lose its family home status and become a taxable business asset. In such a case, the capital gains arising from its eventual sale could become taxable.  That is certainly something a homeowner thinking of listing with Airnb would be wise to fully explore with legal counsel.

People running a family business from their homes are entitled to make a tax deduction claim on that portion of the house used for office purposes with component claims for lighting and heating.  In the past, this has not intruded on family home status but like all tax laws it is subject to review.   The pot of gold this housing bubble presents is a tempting target for any government short of money.

Like any new forms of business, it is the wise who first investigate the legal possibilities to avoid later liabilities.

Poker Machines !

New South Wales was the first Australian state to legalise poker machines and many people remember the glory days when bus loads from other states poured over the borders for the sole purpose of playing the machines in our clubs.   At that time they were restricted to registered clubs and the sport of Rugby League found them an important means of financing the individual teams in the competition.

Pressure mounted and one by one these machines not only spread to other states but also became a fixture in the gaming rooms of the hotel industry.  The lure increased when the advance of electronics made it possible to link machines to offer stupendous jackpots, although the chance of winning became equally remote.   There was steady pressure from anti-gambling interests to ban poker machines or at least substantially reduce the stake that can be wagered.

We do not need psychologists to know that big rewards attract people to gamble.  Whenever the game of Lotto offers a multi-million jackpot draw the number of people rushing to newsagents to buy a ticket increases out of sight.  We are well aware that gambling takes food off the table in many households and it is not uncommon for a breadwinner to put his or her pay packet through the machines in a moment of madness.

It is also an economic fact that the concentration of poker machines is greatest in suburbs with the lowest socio-economic resident base.   In Sydney the statistics from the Fairfield area are frightening.  In the 2015/16 year eighty billion dollars was put through the poker machines in the pubs and clubs of that suburban area and its preponderance of commission housing.

The figures speak for themselves.   There are eighteen pubs and twenty clubs in the Fairfield council area and they host 3,836 poker machines, with a density of 24.6 machines for every thousand adults. That compares with a state average of 15.8 machines based on 2015 data.

Of course this is not all bad news.  When people choose to try their luck on a poker machine they are also heavily contributing to the tax funds the government needs to run this state.  The state government collected $ 1.45 billion in tax in 2016/17 and expects that to rise to $ 1.77 billion in 2010/21.   If poker machines were banned, it would have to come from somewhere else !

There is pressure building to reduce the amount that may be gambled to just one dollar for each cycle of the spinning wheels.  That would certainly reduce the possible loss rate per hour of play, but it would also decrease the excitement and that seems to be the main reason people play these machines. They know they will most likely lose money, but there is that anticipation that they might beat the odds and win a fabulous prize.

The government would be wise to proceed with caution.  Poker machines provide a gambling outlet that patrons choose to follow.  If it loses its attraction the crime industry will certainly devise something to replace it and that will be both illegal and carefully hidden from view.

We could easily end up with an even greater problem !

Super-Bugs !

We have known for a very long time that overuse of antibiotics will allow the culture we are trying to cure to develop the ability to become immune to that treatment.  That raises the scary scenario of " super-bugs " that are beyond our ability to control.  The vast majority of antibiotics we have relied on for many years are now useless because they have been over prescribed.

Every hospital lives in fear of an outbreak of " Golden Staph ". Patients and their visitors may have noticed the appearance of bottles of hand disinfectant beside every bed and close to the entrance of every room.  The nursing staff have been trained to constantly clean their hands as the best defence against spreading infection.  The points where washing with soap and water are limited and this form of germ cleansing has proven to be most effective.

Unfortunately, the effect of antibiotics continues to retreat and the few effective drugs remaining are being carefully rationed.  We seem unable to get the message through to both the general public and many doctors that antibiotics will not cure a virus.   So many patients go to their doctor with respiratory infections - and demand an antibiotic.  They are convinced that is what they need and they are persistent with that demand - and too many doctors simply write a prescription to end the argument.

Researchers believe that up to 4.61 million patients may have been incorrectly proscribed antibiotics and in many cases they have failed to meticulously take the course in its entirety.   That is critically important.  If a patient begins to feel better and ceases taking antibiotics in mid course, the particular bug not only recovers but gains immunity to that drug.

This is just not an Australian problem.  It is a world problem.  Exactly this same overuse of antibiotics is happening everywhere and with world travel people who are drug resistant are mixing in our communities.   The drug industry markets its products across the world and as well as the medical industry they are finding increasing use in agriculture.  An even bigger volume of antibiotics is being used to speed the growth of poultry and livestock, have them gain weight and be ready for market at an earlier age.

There is a desperate hunt for new antibiotics but even if this is successful there is every chance that they will suffer the same fate - massive overuse.   We could be reaching the stage where the world will see decreasing longevity.   Perhaps the mere scratch from a rose bush while gardening may induce uncontrolled infection that may kill.   Without effective antibiotics all sort of horrors await.

Big Pharma, doctors and the government need to build a protective wall behind which antibiotics are protected from indiscriminate use.   That seems the only way the emergence of superbugs will be prevented !

For Profit ? Or Glory ?

A long time ago the people who played football - in all of the Australian codes - also had a job of some sort to earn a living.  Becoming a playing member of a sporting team ensured that they were constantly featured in newspapers and they quickly became a household name.  Achieving " glory " ensured that they were high on social invitation lists and their club picked up the tab for exotic travel as a way of player " rewards " !

That is not the scene today.  Football players are professional sportspeople and as such they are paid the sort of money earned by entertainment stars. When they sign a contract with their club it is in negotiation for earnings that can run to more than a million dollars a season and to preserve club balance the entire team rewards must fit within a salary cap.   If a mega-star is to be paid more, other team members must receive less.

There are constant ructions in football because top players are being enticed to break contracts and move to another team where their particular skills are badly needed. Teams have been disciplined for breaking the salary cap by enticing supporters to offer hidden rewards to enhance the salary offered. Often this takes the form of providing an upmarket car or a job title and salary in a supporters business venture.

Now this quest for more money has spread to cricket.   Our national team is on strike, demanding that the players rewards are by way of a share of the profits derived from ticket prices and television rights.  The target set is for twenty-nine percent of this income to be distributed as a share of the players pay.   It is evident that this is now quickening interest in the football codes.

Perhaps what has provoked this backlash is the very different reward conditions that have developed in individual sport - such as golf and tennis.  Representing Australia in national competitions is just part of the allure these players attract.  People remember when Tiger Woods was at the height of his fame he was paid over a million dollars just to appear at tournaments because his presence ensured record crowds.  Fame and glory are fine - but in todays world sportspeople are looking for the money !

In the tennis world the top players collect individual rewards that are astonishing. There is no doubt that this success is breeding resentment where the reward for teams is controlled by those bodies which occupy the top of the sporting pyramid.   Their right to control is now being challenged.  Who or what gave them their power is far from clear.

No doubt this cricket strike will eventually be settled by compromise.  But it seems that the genie is out of the bottle.   The old ways of controlling sporting bodies creaming off the profits looks like coming to an end.   In future, the finance of sport may look very different !

Risk Factor !

South Australia has an electricity problem.  This coming summer its citizens may face blackouts because it lacks the electric generating power to meet its needs and that could be a financial catastrophe.  It is seriously considering a bold step - to use a giant battery to light the state during the hours of darkness with that battery recharged from solar and wind power generation.

This idea is at the urging of Elon Musk, a man who is one of the five richest people in the world.  Musk was one of the co-inventors of what is called " Pay-Pal " and from there he went on to develop the  worlds best selling electric car and re-useable space rockets. He also has developed the most advanced battery system  to power his electric cars.

This idea is revolutionary.  Somewhere near the city of Adelaide Musk proposes to create a battery farm as big as an entire city block capable of storing 129 megawatt hours of electricity, enough to power about 13,000 homes for twenty-four hours - or 30,000 homes overnight during a power crisis. This would be accompanied by a French owned wind farm feeding a re-charge into this battery storage.

This is not intended to be a replacement for South Australia's other means of power generation.  It would keep the lights burning during the sort of power interruption that crippled the state last year, but it would also feed in cheap power at peak load times and lower customer retail prices.  It seems the first serious suggestion to actually integrate solar and wind with a form of storage to make " renewables " a working model.

Musk has made an interesting offer.  He has pledged to create that battery farm and have it in operational mode in just one hundred days after the signing of a contract - or he will pickup the tab for the entire cost.  This billionaire certainly has the assets to make that offer believable.   It is also possible to have such a project on line before this coming summer heat arrives - if South Australia makes a quick decision.

This is simply too big a gamble to test in either New South Wales or Victoria but South Australia is an ideal smaller state - and it is helpful that it already has a power shortfall that needs urgent correction.  If we are serious in wanting to curb the burning of fossil fuels for electricity generation then this is the first real chance to bring renewables into an integral part of the power system.

If we hesitate, then some other part of the world will most likely take up this offer.

China's " Creature " !

The speed with which backward North Korea is developing ICBMs capable of reaching world targets is suspicious.  Just a handful of world countries have the technical ability to achieve that capability and somehow this backward regime seems to have mastered the technical skills in little more than a decade.

North Korea is a very valuable chess piece in the power game being played by China.   It certainly suits Xi Jinping to have a totally independent rogue third world country threatening the west with nuclear weapons.   That allows China to play the role of mediator and strengthens China's hand when it seeks concessions in return for its help with the situation.

The pot of gold in the middle of this poker game is the ownership and control of the South China sea. By sheer bluff China has managed to wrest physical presence from other nations and an adverse ruling by the United Nations law of the sea is being totally ignored.    Rocks and sandy islets have been turned into sand islands and progressively the Chinese military have turned these into mini fortresses with safe harbours and airstrips.    They are being turned into  military bases equipped with missile defences.

The North Korean economy would quickly collapse without China supplying its needs and buying its exports. Xi Jinping claims this is necessary because he fears a flood of North Korean refugees swamping his country if Kim Jung-un loses control of his repressed millions.   America has asked China to use its power to bring North Korea to the bargaining table but it is obvious that mere token efforts have been made.

The flash point between China and the west is the South China sea.   It is a world navigation route and China demands unconditional control of sea movements and the air space above.  The US regularly sails navy ships through this contested area without seeking permission from China to refute this claimed ownership and there is an increasing risk of confrontation spinning out of control.  It is becoming a test of the right of conquest against the rule of law.

Xi Jinping probably hopes that as the risk escalates with North Korea's development of ICBMs the United States may accede to his claim on the South China sea in exchange for forcing North Korea to the bargaining table.  That is a dangerous gamble.   Perhaps he misjudges the influence he has over Kim Jung un.  The North Korean population has been whipped to a frenzy of nationalism and a retreat my be out of the question.

The other factor is the massive United States military now under the control of a very inexperienced new president.    We seem to be heading into an area of danger most though ended along with the years of the " Cold War " !

" Hire and Fire " Rules !

Work status is important - as anyone who has applied for a housing loan would understand.  An applicant who has a secure job with a reliable employer would get a loan approval more readily than someone doing casual work, even if that work had endured over a very long period.   The term " permanent casual  " applies to the job description of many Australian workers.

The union movement has applied to the Fair Work Commission to add a provision allowing casual workers to apply for their job to be changed to either full time or part time status when they have completed six months as a casual.  The Commission has handed down a ruling that partly accepts that position, but with a number of limitations.

Workers have the right to request a status change to permanent employee when they have completed twelve months of work with the same employer, but that employer has the right to refuse if the change would substantially change the worker's hours.   That will now apply to the eighty-eight awards that do not contain such a provision.

This change from !" casual " to " permanent "has many ramifications.  A permanent employee is entitled to both annual and long service leave and may appeal the reason for dismissal in court.  The pay awards that apply to casual workers exceed the hourly rate that applies to permanents to compensate for those benefits.  The change to permanent for many workers would involve an actual pay cut.

This ruling from the Fair Work Commission will concern many small business proprietors.  It seems the first small step towards forcing a change to permanent employment across the board and this would destroy the flexibility that allows business to respond to varying demand for their services.  In particular, many family business ventures have regular casuals that they call in to even out regular demand peaks.  It is often an arrangement that suits both parties.

Now that this change is written into awards there is the expectation that it will be hotly pursued by union organizers.  Many casual workers would welcome an extension of the times they are employed and the employers will be under pressure to extend hours - which may not be applicable to their needs.

If union militancy extends to the numerous suburban shopping centres that are the main source of casual jobs it will provoke a backlash.   Many employers will ensure that no individual is allowed to attain an unbroken record of twelve months service.   Jobs will be split amongst several people for the purpose of achieving that aim and to avoid " ambush " tactics by union organizers.

From the start of civilization the basis of business has been the ability to hire and fire workers in direct ratio to need. Interfering with that cycle merely reduces the number of job opportunities offering.

Trolley Block !

When someone falls ill and the symptoms indicate that it may be a heart attack or a stroke it is critically important that person is placed in the hands of someone with the medical training to bring stability and prevent further damage.    The paramedics who crew our ambulance fleet serve that purpose and a call on the 000 number will summon their help.

Once again ambulance response times are coming under the spotlight.   We have a very big ambulance fleet and their intervention runs within a well meshed control system to get the best results.   The paramedics are in radio contact with their controllers and each case gets individual evaluation.   The ambulance may not be directed to the nearest hospital, but to one that has the appropriate testing and treating facilities for that type of emergency.   That controller is also aware of the work load situation at each hospital emergency department.

In past years a lot of money was spent on the hospital system to overcome two glaring disabilities which were slowing the ambulance fleet.   They were called " trolley block " and " bed block ".  In many cases, too many ambulances with too many patients for the emergency department to handle, hence the paramedics and their vehicle was stalled at the entrance caring for their patient - and too few beds to move those treated out of the emergency department to make way for incoming new patients.

Australia's population is rapidly growing and so is the city of Sydney.  Once again we are hearing of trolley block and bed block resulting in backlogs of ambulances held at hospital emergency departments, causing serious delay times in the response to call out arrivals.   The public is aware that when it comes to stroke and heart attack, what is called " that golden hour " is critically important.  The " right " treatment given immediately usually determines how fully the patient will recover - and what disabilities will permanently remain.

Recently, the entire city of Sydney was reliant on just seven ambulances during the lunch break because the rest of the fleet was unable to discharge their patients into emergency room care.   Even ambulance service executives who still retained their paramedic licenses were pushed into service to fill the gap.  The result was delay in crews arriving to attend time critical cases.

The longer term answer is to extend emergency rooms and train the additional staff needed, but that takes time and the important need is to get those ambulances and their crews back on the road to deliver a fast response.   Perhaps the short term answer is to make use of those executives and off-duty staff to relieve the load - at the emergency department door.   Providing emergency response teams to look after patients discharged into their care would allow the ambulances and their crew to provide that urgently needed first response to call outs.

Emergency departments manage to handle the load most of the time.   These load peaks occur infrequently and by sheer chance.  A relief team to share the load at the emergency room door could make all the difference !

Ambit Claims !

When the unions sit down with the Fair Work Commission to negotiate awards it is usual for them to bring forward what is called an " ambit claim " that contains fanciful conditions that have no hope of approval.   That is the basis for that old age form of haggling that is the cornerstone of most Asian markets.    The seller demands a high price and the buyer makes a low offer - and the sale takes place  somewhere between the two.

It seems that the unions seriously put forward a proposal that " domestic violence leave " become a key component of all modern industrial awards.   They wanted ten days paid leave written into awards to compensate employees who experienced domestic violence and this has now been rejected for the second time by the industrial umpire.

Employers would be justified in claiming that time off for domestic violence injuries is already covered by the " sick leave " in awards.  Employees are entitled to a number of paid days off - depending on the individual award - for illness and recovering from domestic violence would fall under that category.

Employers would certainly be apprehensive about any new proposal becoming part of an " award ". In many industries employees are meticulous in ensuring that their full quota of sick days are taken each year and in some cases they are taken according to a union inspired roster to ensure others are called in to cover with penalty rates applying.   Sick days are simply a cover for extra leisure time.

Women are usually the victims of domestic violence and there is the danger that if this proposal becomes part of awards it will be a positive disincentive for jobs to be filled by women.  It seems grossly unfair that the personal selection of partners that all people freely make should have a bearing on the costs that accrue to employers for bad choices.

Many employers with a small staff are very compassionate when valued staff are having relationship  difficulties, but it is a different matter when that is written into an award.  That introduces the difference between physical and emotional injuries and the difficulty of establishing both extent and duration.

Domestic violence leave is part of the Labor parties manifesto, but that claim relates to just five days annually.    It is quite possible that a future Federal Labor government may pursue this issue, but at the moment the Fair  Work Commission is having none of it.   Like all claims, the umpire must be conscious of " border creep " when considering awards.   Many years ago accidents were covered only on the factory floor but employer responsibility extended and now they cover from that employee walking out the door of his dwelling to the moment to returns from shift through that same door.

We need to avoid extremes that could make humans unemployable !

Innocent - Until Proved Guilty !

At long last the accusations that Cardinal George Pell engaged in child sexual assault are going to be heard in court and the third most senior figure in the Roman Catholic Church will return to Australia to face charges brought by the Victorian police.  It has been made abundantly clear the bill for his defence counsel will not be paid by the Vatican.

George Pell has long been a controversial figure.  As the most senior representative of the Catholic church in Australia he presided over the compensation payments made by the church to settle cases where priests were accused of molesting children.  Many of these went back years and Pell made enemies when he stoutly defended the church on all occasions and was parsimonious is offering funds to victims.   He was constantly accused of being unsympathetic to the suffering caused.

Pell rose rapidly through the ranks of priests in Australia and  Pope Francis elevated him to take charge of the Vatican finances in Rome, where he seemed certain to end his days.  He claimed ill health to avoid returning to Australia to face an earlier enquiry into child abuse within the church and these current charges came as a shock to many people.  It seems likely that the matter of an adequate defence and how that will be financed will be equally controversial.

Those who enter the priesthood take a vow of poverty - as well as a vow of celibacy.  It is probable that Pell owns no property and has the expectation that eventual retirement will be in a church home with his upkeep met by the church.  It can be construed that while he is facing personal charges of crimes against children, he is in fact representing the church in the eyes of the public.   After years of innuendo - many have already made up their mind about his guilt.

The law in Australia ensures that the accused is entitled to legal representation in court.  That law stipulates that where an accused lacks the means to be represented, a qualified practitioner will be engaged at public expense to so act.   That legal representative is usually someone recently admitted to the bar and lacking wide court experience.   He would be facing down the very best prosecution team that the Victorian police would put together  in keeping with the public interest value of this case.

Justice would not be served in such a scenario.   Pell has engaged a leading counsel who may charge several thousand dollars for each day in court and it seems that a private bank account has been setup to deal with the Cardinals legal bill and the public are invited to donate funds.   There is the danger that such an arrangement may quickly become a contest between church and state  with the Catholic community believing that the church itself is under attack and they have a religious obligation to defend George Pell.

It would be a short mind set to the view that George Pell is innocent - nomatter what the evidence shows - and that these charges are simply the latest form of anti-Catholic feeling which was so prevalent in early Australia.   In this instance, the public purse should show benevolence and ensure that Pell is not unjustly represented because of his vocation !

A Dream ? Or a Nightmare ?

When we look at Chinese cities the visual impact is not welcoming.  Many citizens cover their faces with protective masks to avoid breathing the noxious air and seeing a blue sky is a rare occurrence. That could be the fate of the population in most world cities if our numbers continue to grow out of control.

There are about seven billion of us on this planet and we expect to reach ten billion by the middle of this century.  The disposition of this population is in a state of flux.  A mixture of civil war and a desire to escape poverty is bringing a vast exodus from the Middle East and Africa and their numbers are finding increasing resistance in the rest of the world.

Australia is about to have a population of  twenty-four million and that will make us the last virtually undeveloped continent.   Our population is concentrated in a few major cities on the coastline and a small number of inland towns.   We are one of the least populated land masses on planet Earth.

What we are seeing in Europe could be a portend of the future.  Vast masses of people are on the move to escape the civil wars that are seeing their homes and livelihoods destroyed while others are making what can be described as an " economic migration " to where they hope to find a better life - and this is unstoppable    They attempt to cross oceans in leaky boats - and many drown.  They starve and freeze waiting to cross blocked frontiers.   They are preyed upon by people smugglers who rob them of their treasures and abandon them - but still they come in ever increasing numbers.

We experienced the arrival of " boat people " at the end of the Vietnam war and only recently have we managed to stop this inward flow of refugees from many other countries trying to force their way here and demand shelter.   Fortunately for us, it is Europe that has become the chosen destination of the moment with the illusion that its streets are paved with gold.  Destination choice is volatile - and it may change with astonishing speed.

There  are worrying events happening in our part of the world.  Papua New Guinea, our nearest neighbour is showing signs of political separation and an authoritarian tendency and our two nations are a short canoe ride apart.   Indonesia has a growing Islamic militancy and many of its islander people may find that unacceptable. India - with the worlds second largest population - is on our doorstep and in desperate need of modernization.   Should it take a closer embrace of the Hindu religion, others numbering at least twice the present Australian population could be looking for a new home.

It is almost certain that Australia will experience a new migrant wave later this century and if the rest of the world regards us as an almost empty continent we will probably be under pressure to accept these incoming numbers.   We would be wise to draw from the experience of what is happening in Europe and have plans in place of how to disperse and settle these incoming hordes - should they eventuate.

An Ever Changing World !

Only the aged remember when Australia worked a " five day week " !   It was back in the 1950's and on week days the shops opened a 9am  and closed at 6 pm.  On Saturday, they closed at noon and for most people Saturday afternoon was either football - or the pub.

Sundays seemed to be a day of total closure.  The hotels were closed.  The cinemas were shuttered. No sport on a Sunday.  Shopping centres were deserted with perhaps the odd milk bar open for business.  The only activity seemed to be church services.

That was a time when most people accepted the dictum that they worked for five days and had a two day weekend of leisure.  Anything that intruded on that needed a form of compensation - and so the rate of pay was sharply increased for those people who were needed to work on either Saturday or Sunday.   The words " penalty rates " entered the lexicon.

The situation today is entirely different.  It didn't happen overnight, but demand for services saw the supermarkets open at weekends - and then a host of other services followed.  Law changes allowed the pubs to open on Sundays and sport extended into times when crowds were free to come and be entertained,  We gradually morphed into the seven day trading society that engulfs the world of today.

Strangely, those penalty rates persisted   Time and a half for work on Saturday.  Double time for Sunday. That was a positive incentive to create the type of business that reduced the need for labour. As a result, many small businesses either closed on weekends or adopted a self serve mode to reign in costs.  We started to have an unemployment problem.


This month saw the start of those penalty rates being peeled back  The rate that applies will be reduced and there is the expectation that this will create more jobs.  This is bitterly opposed by the unions but the world has changed and we are paying people for a type of imposition that evaporated a long time ago.  Jobs today simply fit into the twenty-four hour work cycle.

Part of the problem is that penalty rates have been in place for such a long period of time that many people have adjusted their lifestyle to that type of wage economy - and now they need those shorter hours at expanded pay to finance their other activities.  By broadening job opportunities, we may extend job opportunities to those languishing in unemployment queues.

At this stage, that peel back is restricted to hospitality and entertainment industries and features only a part removal.   The writing is certainly on the wall.   Thinking people can clearly see that penalty rates are a mechanism that has long past its used by date !

Disruptive Tactics !

Tony Abbott once managed to wrest the post of prime minister from Malcolm Turnbull by way of a party room vote.  His term in that office was less than illustrious, and in due course he was deposed and Malcolm Turnbull reinstated by exactly that same process.  Abbott chose to remain on the backbench and ever since he has conducted  a disruptive tactical war which puts his own interests above that of the government.

The most recent census has revealed that Australia is becoming less religious. Numerous national opinion polls show that the mood has generally swung behind same sex marriage and aid to allow the terminally ill to die with dignity with help from their doctor.  Both of these are implacably opposed by Mr Abbott's personal religion and he has been rallying a few hard core conservatives to prevent both becoming law.

Being elected to parliament is a great honour that can be bestowed by a mix of reasons.  It certainly helps if the candidate has personal appeal but in many cases the voters are casting their vote to support the political party of their choice rather than the individual standing for office.  There is the expectation that having gained party endorsement he or she will support the agenda the party is following.

It is quite clear that Tony Abbott's main aim is to regain the position of prime minister and if he brings down the government in his quest to attain that result it is a price he is prepared to pay. He is putting his religious conviction above the loyalty he owes to this nation and his latest outburst may actually increase the military risk this country faces.

There is a gaping hole in our defence capacity.  Our submarine fleet are no longer operational and it has been decided to replace them with twelve diesel/electric boats which will be procured from France.  Abbott is now demanding that this order be cancelled - and replaced with nuclear powered submarines.

Nuclear submarines are an option for a country wanting to project world power and for that reason they are possessed by America, Britain, France and the Soviet Union.  Australia has a very different defence need and conventional submarines are ideal for making the approach waters to this country unsafe for an enemy.  Abbott is trying to impose his personal opinion over the combined views of the entire defence industry and the forces that keep this country secure.  The cost of nuclear submarines would be astronomical.

We are seeing a tendency in politics for those with diverging views to disengage and start their own political party  and this is most evident in the Senate.  Pauline Hanson is probably the most successful of these new ventures but the Greens seem to be about parting company with Lee Rhiannon and this may have a similar result.  The Labor party has always had sharp factional divisions.

The Conservatives may be wise to show Tony Abbott the door.   Either support the party political agenda faithfully - or march under his own flag - wherever that leads !