Two events in Afghanistan yesterday did enormous damage to the plan to create both a civilian government and an effective army to allow this little country to stand on it's own two feet once allied forces withdraw.
A soldier in the Afghan National Army ( ANA ) which Australian troops are training suddenly snapped and used his weapon to fire on those mentoring, killing three Australians and severely wounding seven. Returned fire killed him instantly.
A car bomber drove his vehicle into the middle of an army convoy and detonated a bomb which killed seventeen people. Thirteen of these were American soldiers and the others were police and Afghan civilians. It was the worst level of casualties in the entire Afghan war so far.
The job of training other soldiers requires a high degree of trust. When it comes to field operations - and these follow the end of the training regime - the lives of both are in each others hands. The thought that there may be an enemy infiltrator aiming a rifle at your back would be an unnerving thought.
It is inevitable that each ANA recruit will be carefully watched - and body language carefully evaluated. Unfortunately, such doubts can never result in an integration force with the fighting spirit we admire in our own army.
The divisive force - is religion ! While ever people believe that throwing away their lives as warriors in a holy war will result in instant entry to Paradise, this reward will seem paramount to those who live depressed lives in a poor country with little to offer in the way of future advancement.
It doesn't help that what is being offered - a democratic right to choose the government - the right of women to get an education - decent roads and communications - is something beyond both their knowledge and experience. It is also anathema to the leaders of the Taliban - who claim their allegiance.
There have been many errors in both the planning and the conduct of this war and soon the forces that entered the country with high hope will return home. What then emerges as the new Afghanistan is anybody's guess. The most likely scenario is civil war.
The main hope for an Afghan future comes from the children who have had an education and will now grow up with more enlightened minds. If nothing else, that has been a benefit for this benighted country !
Monday, 31 October 2011
Sunday, 30 October 2011
Gunfight at the Qantas corral !
The dramatic decision by Qantas to ground both it's international and domestic fleets of aircraft until a dispute with the unions is resolved will have implications for the national economy. It also signals that our national carrier believes that major change is necessary if the airline is to survive in a rapidly changing marketplace.
Qantas - as a stock exchange listed company owned by it's shareholders - is now competing with several new national airlines which are fully owned by their governments. While Qantas aims to make a profit, these competitors do not have the same profit necessity. Their purpose is to achieve national pride - and to enhance the tourist industry in their home country.
Qantas runs a three class airline both domestically and internationally. Seats are available first class, business class - and what are often termed " Coach ", " Tourist " or " Economy ". Our national airline spun off a one class tourist airline - Jetstar - and this is not affected by the grounding.
Qantas has made it clear that to survive in the near future some of it's operations will need to be based in an Asian hub and that will involve the loss of at least a thousand Australian jobs. It intends to start two new airline companies - and these will not necessarily bear the Qantas name and logo. The purpose of this move is to compete on equal terms with others who have lower costs because of lower crew and servicing wages than those prevailing in Australia.
The various unions servicing airline personnel are determined to force Qantas to remain based in Australia and have launched a very effective guerrilla campaign to bleed the airline financially. One of the tactics has been to announce strikes - and then at the last minute - when Qantas has cancelled some services and used bigger planes on others to move a greater number of passengers - cancel the strike. As a result, their members retain full pay, passengers are inconvenienced, the Qantas brand is trashed and this is costing the airline fifteen million dollars a week.
Qantas counters that the unions are demanding an unreasonable log of claims, including retaining work practices that no longer apply to the most recent designs of aircraft, and most importantly - insist on job security provisions being included in awards that can not be guaranteed, given the uncertainty of the recession engulfing both the US and Europe.
The Qantas grounding is designed to bring this whole matter to a head - one way or another. The grounding only applies to Qantas brand aircraft and Jetstar, Qantaslink and the two freight arms will continue to fly. Qantas will pay hotel costs for stranded passengers, and assist them to complete their journeys on other airlines - but the shutdown will cost the company twenty million dollars a week while it continues.
This action has forced the hand of the Federal government, which until now has stood aloof. It will try to involve Fair Work Australia as the entity to negotiate resolution, but that will be suspect by many people because of the close links between the Labor government and it's union allies - and Fair Work Australia is the creation of a socialist government.
This is a high risk situation and the bargaining chips are huge. There is no guarantee that any order from Fair Work Australia would be obeyed by either side and it is quite possible that Qantas could simply quit this country for a new life in a new city hub.
Hopefully, negotiations between Qantas, the unions and Fair Work Australia will be conducted with honesty and the intention of keeping Qantas Australian. If it degenerates into a pure political fight - there will be no winners !
Qantas - as a stock exchange listed company owned by it's shareholders - is now competing with several new national airlines which are fully owned by their governments. While Qantas aims to make a profit, these competitors do not have the same profit necessity. Their purpose is to achieve national pride - and to enhance the tourist industry in their home country.
Qantas runs a three class airline both domestically and internationally. Seats are available first class, business class - and what are often termed " Coach ", " Tourist " or " Economy ". Our national airline spun off a one class tourist airline - Jetstar - and this is not affected by the grounding.
Qantas has made it clear that to survive in the near future some of it's operations will need to be based in an Asian hub and that will involve the loss of at least a thousand Australian jobs. It intends to start two new airline companies - and these will not necessarily bear the Qantas name and logo. The purpose of this move is to compete on equal terms with others who have lower costs because of lower crew and servicing wages than those prevailing in Australia.
The various unions servicing airline personnel are determined to force Qantas to remain based in Australia and have launched a very effective guerrilla campaign to bleed the airline financially. One of the tactics has been to announce strikes - and then at the last minute - when Qantas has cancelled some services and used bigger planes on others to move a greater number of passengers - cancel the strike. As a result, their members retain full pay, passengers are inconvenienced, the Qantas brand is trashed and this is costing the airline fifteen million dollars a week.
Qantas counters that the unions are demanding an unreasonable log of claims, including retaining work practices that no longer apply to the most recent designs of aircraft, and most importantly - insist on job security provisions being included in awards that can not be guaranteed, given the uncertainty of the recession engulfing both the US and Europe.
The Qantas grounding is designed to bring this whole matter to a head - one way or another. The grounding only applies to Qantas brand aircraft and Jetstar, Qantaslink and the two freight arms will continue to fly. Qantas will pay hotel costs for stranded passengers, and assist them to complete their journeys on other airlines - but the shutdown will cost the company twenty million dollars a week while it continues.
This action has forced the hand of the Federal government, which until now has stood aloof. It will try to involve Fair Work Australia as the entity to negotiate resolution, but that will be suspect by many people because of the close links between the Labor government and it's union allies - and Fair Work Australia is the creation of a socialist government.
This is a high risk situation and the bargaining chips are huge. There is no guarantee that any order from Fair Work Australia would be obeyed by either side and it is quite possible that Qantas could simply quit this country for a new life in a new city hub.
Hopefully, negotiations between Qantas, the unions and Fair Work Australia will be conducted with honesty and the intention of keeping Qantas Australian. If it degenerates into a pure political fight - there will be no winners !
Saturday, 29 October 2011
An end to free education ?
One of the things that makes Australians proud is the right of every Australian child to receive a free education in a government school. Of course this is not strictly true. Our schools are grossly underfunded and parents are constantly putting their hand in their pocket to supplement essentials - and to cover the needs for excursions and sport.
But basically, if your child attends a state primary or high school you are not presented with a bill for school fees - but it seems that is now about to change.
From next year, children attending pre-schools attached to state public primary schools will be required to pay a fee of up to $ 40 per day - and this will be tailored to the socio-economic status of the place where the school is located. For instance, that full $ 40 a day will apply to schools in Sydney's more affluent suburbs, but schools in Wilcannia will be free - and here in the Illawarra the charge will be somewhere in the $ 10 to $ 30 a day bracket.
For some people, this new fee will be the dividing line between survival and financial disaster. In many households now the option of both partners working is no longer a matter of choice. We have savage cost rises creeping through the electricity/gas/water essentials - and food prices have been rising at a much higher rate than inflation. At the same time, salaries are not moving in tandem.
It seems that the state government is applying a fee to public pre-schools for the first time on the notion that they are merely " child minding centres " - and as such are removed from the mainstream " learning " of the public school system.
The fact that fees will vary according to the socio-economic status of each district is an ominous warning that means testing may one day apply to education. If " ability to pay " becomes the criteria for accepting children into schools without presenting a bill, then the days of free education for all are over !
It seems that both ends of the education spectrum are under pressure. Many people contend that university education should be free, but we are seeing a never ending battle of higher fees, crippling HECS and course cut backs to make education money go the distance - and now the pre-schools at the other end are getting hit with fees for the first time.
The main casualty here will be working women. For those with more than one child this imposition could be a sheer financial disaster. Surely this is an issue on which the public should make it's position clear to the state government well before the start of term in 2012.
But basically, if your child attends a state primary or high school you are not presented with a bill for school fees - but it seems that is now about to change.
From next year, children attending pre-schools attached to state public primary schools will be required to pay a fee of up to $ 40 per day - and this will be tailored to the socio-economic status of the place where the school is located. For instance, that full $ 40 a day will apply to schools in Sydney's more affluent suburbs, but schools in Wilcannia will be free - and here in the Illawarra the charge will be somewhere in the $ 10 to $ 30 a day bracket.
For some people, this new fee will be the dividing line between survival and financial disaster. In many households now the option of both partners working is no longer a matter of choice. We have savage cost rises creeping through the electricity/gas/water essentials - and food prices have been rising at a much higher rate than inflation. At the same time, salaries are not moving in tandem.
It seems that the state government is applying a fee to public pre-schools for the first time on the notion that they are merely " child minding centres " - and as such are removed from the mainstream " learning " of the public school system.
The fact that fees will vary according to the socio-economic status of each district is an ominous warning that means testing may one day apply to education. If " ability to pay " becomes the criteria for accepting children into schools without presenting a bill, then the days of free education for all are over !
It seems that both ends of the education spectrum are under pressure. Many people contend that university education should be free, but we are seeing a never ending battle of higher fees, crippling HECS and course cut backs to make education money go the distance - and now the pre-schools at the other end are getting hit with fees for the first time.
The main casualty here will be working women. For those with more than one child this imposition could be a sheer financial disaster. Surely this is an issue on which the public should make it's position clear to the state government well before the start of term in 2012.
Friday, 28 October 2011
A selective target !
The plan to curb excess gambling on poker machines ebbs and flows, and the main casualty seems to be the clubs who gain much of their income from their popularity. They are spending big money to at least water down the harsher aspects of the legislation.
There have always been an anti-gambling lobby, mainly churches and welfare groups - but this demand for legislative action only arises from unusual circumstances. We had an election that nearly delivered a hung parliament - and a small group of independents found themselves with the balance of power. Each presented their demands to provide parliamentary support - and one of them was an anti-poker machine fanatic !
We now have a situation where to remain in office the Federal government must pass legislation to reduce the amount a gambler can lose on a poker machine - and do it within a given time frame.
Surely this must skirt dangerously close to the law that covers " making demands with menaces " ?
The curious thing is that all the other forms of gambling are left untouched. It is only poker machines that are the target of this legislation - and yet we read of punters losing their homes and businesses from gambling addiction in casinos and there are those who become totally addicted to horse racing - and the lure of bookmaker's odds.
Without the power transferred to several individuals by the vagaries of the electoral system this attack on poker machines would not be happening. Neither of the major political parties has any real interest and gambling legislation is the prerogative of state governments anyway.
The pressure is on to rush this new law through within a strict time frame because it seems certain that when the next Federal election occurs somewhere in 2013 this balance of power situation will have evaporated.
Just another of those curious twists and turns delivered by a democratic voting system !
There have always been an anti-gambling lobby, mainly churches and welfare groups - but this demand for legislative action only arises from unusual circumstances. We had an election that nearly delivered a hung parliament - and a small group of independents found themselves with the balance of power. Each presented their demands to provide parliamentary support - and one of them was an anti-poker machine fanatic !
We now have a situation where to remain in office the Federal government must pass legislation to reduce the amount a gambler can lose on a poker machine - and do it within a given time frame.
Surely this must skirt dangerously close to the law that covers " making demands with menaces " ?
The curious thing is that all the other forms of gambling are left untouched. It is only poker machines that are the target of this legislation - and yet we read of punters losing their homes and businesses from gambling addiction in casinos and there are those who become totally addicted to horse racing - and the lure of bookmaker's odds.
Without the power transferred to several individuals by the vagaries of the electoral system this attack on poker machines would not be happening. Neither of the major political parties has any real interest and gambling legislation is the prerogative of state governments anyway.
The pressure is on to rush this new law through within a strict time frame because it seems certain that when the next Federal election occurs somewhere in 2013 this balance of power situation will have evaporated.
Just another of those curious twists and turns delivered by a democratic voting system !
Thursday, 27 October 2011
Last day Friday !
Tomorrow will be a sad day at the Wollongong steelworks ! The number six blast furnace is empty and is now cold and silent. Number four coke battery is also shut down, and at the end of shift many of those who worked there producing steel will walk out the gate for the last time.
It is the end of an era for three hundred steelmakers, a similar number of contractors - and four hundred and thirty others who served in associated jobs. Many are in a difficult age group when it comes to attracting other job offers.
One thing is certain. Those walking out the gate will be cashed-up after years - and sometimes decades - of service. They will have received two and a half weeks pay for every year of service, plus a lump sum of fourteen weeks pay - and other special payments ranging from $ 7,500 to $ 12,500.
It will be an emotional time - and that brings with it danger. " Wakes " are planned and those attending are advised to leave the car at home - and to remember that those redundancy payments will have to last a very long time.
We can expect tension in many households. Heart wrenching decisions will have to be made that will affect every member of each family. For some the options will be to sell the family home and move to where jobs are going begging in the mining boom. For others, there will be the temptation to start their own business.
It doesn't help that world finance is in serious disarray - and the way ahead is uncertain. These job losses will be a blow to the economic health of Wollongong - and will probably take a long time to dissipate.
It is encouraging to remember that we faced a similar downturn many years ago - when this steel plant had a work force of over twenty thousand people - and we survived and finally prospered.
We are a city of survivors !
It is the end of an era for three hundred steelmakers, a similar number of contractors - and four hundred and thirty others who served in associated jobs. Many are in a difficult age group when it comes to attracting other job offers.
One thing is certain. Those walking out the gate will be cashed-up after years - and sometimes decades - of service. They will have received two and a half weeks pay for every year of service, plus a lump sum of fourteen weeks pay - and other special payments ranging from $ 7,500 to $ 12,500.
It will be an emotional time - and that brings with it danger. " Wakes " are planned and those attending are advised to leave the car at home - and to remember that those redundancy payments will have to last a very long time.
We can expect tension in many households. Heart wrenching decisions will have to be made that will affect every member of each family. For some the options will be to sell the family home and move to where jobs are going begging in the mining boom. For others, there will be the temptation to start their own business.
It doesn't help that world finance is in serious disarray - and the way ahead is uncertain. These job losses will be a blow to the economic health of Wollongong - and will probably take a long time to dissipate.
It is encouraging to remember that we faced a similar downturn many years ago - when this steel plant had a work force of over twenty thousand people - and we survived and finally prospered.
We are a city of survivors !
Wednesday, 26 October 2011
A Bonus ? For What ?
One of the reasons for the "Occupy Wall Street " crowds is disgust that failed financial institutions which were bailed out with public money have started to again lavish obscenely rich bonuses on their executive staff. Wall street is a long way away - and in another country - but this bonus enigma is now rearing it's ugly head right here in Wollongong.
Next month BlueScope Steel will hold it's AGM and on the agenda is a proposal to bestow $ 3 million in executive bonuses.
This at a time when the company has announced a one billion dollar loss, a retreat from the export business - the retrenchment of a thousand production jobs - and the cancellation of any shareholder dividends.
The question could be asked : " a bonus - for what ? "
The company will probably claim that the heroic efforts of it's executives saved it from an even greater disaster. The money is needed to prevent these valuable people being poached by other companies, leaving BlueScope bereft of the brains it needs to climb out of this financial hole.
That seems to suggest that these executives are seriously underpaid - and that is a scenario that few would believe. We seem to be going through a period where executive salaries are widening disproportionally in relation to average earnings - and that is what is causing social unrest across world markets.
We are not seeing disgruntled people occupying public space in Wollongong but these movements have a habit of growing - and getting out of hand - and the sort of madness that is proposed for BlueScope's AGM can be the trigger.
It's time to get back to reality - and remember the original reason for giving a bonus. That was a reward for a person whose singular effort resulted in market expansion and profit - delivering company advancement that benefited both staff and shareholders.
A criteria that does not apply to the present circumstances !
Next month BlueScope Steel will hold it's AGM and on the agenda is a proposal to bestow $ 3 million in executive bonuses.
This at a time when the company has announced a one billion dollar loss, a retreat from the export business - the retrenchment of a thousand production jobs - and the cancellation of any shareholder dividends.
The question could be asked : " a bonus - for what ? "
The company will probably claim that the heroic efforts of it's executives saved it from an even greater disaster. The money is needed to prevent these valuable people being poached by other companies, leaving BlueScope bereft of the brains it needs to climb out of this financial hole.
That seems to suggest that these executives are seriously underpaid - and that is a scenario that few would believe. We seem to be going through a period where executive salaries are widening disproportionally in relation to average earnings - and that is what is causing social unrest across world markets.
We are not seeing disgruntled people occupying public space in Wollongong but these movements have a habit of growing - and getting out of hand - and the sort of madness that is proposed for BlueScope's AGM can be the trigger.
It's time to get back to reality - and remember the original reason for giving a bonus. That was a reward for a person whose singular effort resulted in market expansion and profit - delivering company advancement that benefited both staff and shareholders.
A criteria that does not apply to the present circumstances !
Tuesday, 25 October 2011
Bandit tactics !
Councils - the third tier of government - are between a rock and a hard place. Federal and State governments control the money flow, but at the same time shift responsibility for services onto this lower level, adding to their cost structure.
Councils find themselves in a finance straitjacket. Rate rises are pegged below the rate of inflation, and grants from both the Federal and State level are usually way short of the actual costs involved. Councils are making up the shortfall by bandit tactics.
They are pushing their input from fees and charges to the limit. While State governments get political kudos from pegging rate rises, they turn a blind eye to exorbitant service fees. Everything from registering a dog to putting in a development application is edging ever upwards - and in some cases moving out of reach for many people.
Sport is the latest to be hit with the " user pays " principle. The fee for the use of a council sporting oval is pushing some forms of junior sport to extinction. We deplore child obesity but unrealistic ground fees are moving sport beyond parent's ability to pay.
Then there is " enforcement fees ". Reduced to it's basic form, this is the tactic of expanding every possible offence on the council books that can attract an infringement fine - and employing an ever expanding force of Rangers to issue fines without mercy.
In most cases it is a money trap. This city's main stadium and all of it's performing arts centres are in a parking desert. Any popular event leaves patrons no option than to park on nature strips or otherwise break laws - and the council reaps a huge bonanza by way of fines.
Federal and State governments reluctantly agree that local councils are underfunded, but both levels of government have their own finance problems, and it is not likely that either will open their coffers to give relief.
This is adding to the groundswell of public anger that is giving rise to the " occupancy " movement against the balance between rich and poor. We have seen struggles between protestors and police in both Melbourne amd Sydney, and there have been complaints of excessive force.
This movement is a warning sign that all forms of government need to take seriously. The cost balance against the average person has tilted in the wrong direction. If it is ignored, events that we see on television news happening overseas may become reality on our own streets !
Councils find themselves in a finance straitjacket. Rate rises are pegged below the rate of inflation, and grants from both the Federal and State level are usually way short of the actual costs involved. Councils are making up the shortfall by bandit tactics.
They are pushing their input from fees and charges to the limit. While State governments get political kudos from pegging rate rises, they turn a blind eye to exorbitant service fees. Everything from registering a dog to putting in a development application is edging ever upwards - and in some cases moving out of reach for many people.
Sport is the latest to be hit with the " user pays " principle. The fee for the use of a council sporting oval is pushing some forms of junior sport to extinction. We deplore child obesity but unrealistic ground fees are moving sport beyond parent's ability to pay.
Then there is " enforcement fees ". Reduced to it's basic form, this is the tactic of expanding every possible offence on the council books that can attract an infringement fine - and employing an ever expanding force of Rangers to issue fines without mercy.
In most cases it is a money trap. This city's main stadium and all of it's performing arts centres are in a parking desert. Any popular event leaves patrons no option than to park on nature strips or otherwise break laws - and the council reaps a huge bonanza by way of fines.
Federal and State governments reluctantly agree that local councils are underfunded, but both levels of government have their own finance problems, and it is not likely that either will open their coffers to give relief.
This is adding to the groundswell of public anger that is giving rise to the " occupancy " movement against the balance between rich and poor. We have seen struggles between protestors and police in both Melbourne amd Sydney, and there have been complaints of excessive force.
This movement is a warning sign that all forms of government need to take seriously. The cost balance against the average person has tilted in the wrong direction. If it is ignored, events that we see on television news happening overseas may become reality on our own streets !
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