2000_01_january_leader23jan defence

Former Liberal prime minister Malcolm Fraser has had an interesting change of thinking over defence. Formerly an ardent supporter of the American alliance, he now sees it as dangerous. He warns that it might get Australia into a dangerous war with China that it would not win.

Mr Fraser’s change of mind comes about through a change in the position of the US in the past decade rather than a change in his own core belief which presumably the best defence of Australia.

The reason for Mr Fraser’s rethink is that with the end of the Cold War, the strategic position has changed radically. We now have one super-power not two. And that super-power, the US, according to Mr Fraser is playing its hand in Asia in a way that could be contrary to Australia’s best interest.

That argument has some difficulty. True, the Cold War is over, but Russia is still a nuclear power. Moreover, its new president Vladimir Putin has recently issued a new policy on Russia’s nuclear arsenal. He says it must be kept in good shape. It is too easy to dismiss this as domestic grand-standing of no consequence. The trouble is that domestic grand-standing is most often the prime reason for leaders taking their nation to war. That is precisely what is happening in Chechnya now.

Mr Fraser argued that US policy in Eastern Europe had de-stabilised relations with Moscow because at the behest of the US, the North Atlantic Treaty Organisation had extended its coverage to the border with Russia and bombed the former Yugoslavia without permission from the United Nations.

As to the former, it was the Eastern European nations that wanted to join NATO. They begged to join. The US just welcomed them. As to the latter, what was NATO to do, sit on its hands allowing China to veto any action in the former Yugoslavia while innocent civilians were murdered?

On the Asian front, Mr Fraser is far too supplicant to China. He argues that the US position on Taiwan could lead to a nuclear war in which Australia would become involved. That is fanciful. China will continue to posture on Taiwan, but will not attack precisely because of the US position.

He argues that the US should reduce its role in north-east Asia. That would allow the Chinese-back North Korean regime breathing space if not licence to attack South Korea. It is because of the continued US presence that South Korea has prospered enabling the communist system in the north to be exposed as a misery-creating dictatorship.

It is fortunate that Mr Fraser argues that any Australian distancing itself from the US alliance should be seen as a long-term prospect. He argues, perhaps correctly, that it would be possible for the US to withdraw and leave the nations of the region to sort out their own relationships in a more trust-filled environment. Maybe that is an ideal goal in the long-term.

But that is not going to happen while China remains undemocratic and hostile to the democratic reforms that have made Taiwan prosper and while North Korea continues to pose such a threat to peace.

In the meantime, the US pressure and presence remains essential to Australia’s interest which is a peaceful Asia.

Mr Fraser’s argument that the US should withdraw over 10 to 20 years and let Australia and other countries in the region sort out their own security arrangements puts the cart before the horse. When nations in the region sort out security with arrangements that can be based on trust, which ultimately means dealing with stable democracies, then the US can start withdrawing.

Mr Fraser’s order puts far too much unwarranted trust in China. Without a US presence and without an alliance with the US, in the current environment and for the foreseeable future, Australia would have to increase its defence effort substantially.

Mr Fraser’s dove-like calls would only give local hawks ammunition.

2000_01_january_woolcott

Changed policy on Indonesia and East Timor would cost Australia dearly, according to a former Ambassador to Indonesia, Richard Woolcott.

Mr Woolcott cited several costs. Much of the recently announced defence spending of $23 billion could be put down to the changed landscape – money that could otherwise have been spent on health, education and scientific research, he said. Australian would have to renegotiate the Timor Gap treaty with respect to oil and other resources. This could be very costly.

Australia would have to spend are large amount supporting an independent Eat Timor. Australia had already spent $4 billion on the INTERFET and UNTAET mission to East Timor.

Our standing with South-East Asian neighbours had been adversely affected with Australia now shut out of a number of regional security and economic groupings.
Continue reading “2000_01_january_woolcott”

2000_01_january_tax comment

ACT taxpayers pay a higher proportion of their total income in federal income tax than people from other states and territories.

For every $10,000 in income tax the average Canberran pays, Northern Territorians are paying $7735 and Western Australians are paying $7970 and the average Australian is paying $8632.

This is revealed when you match yesterday’s Tax Office figures against Australian Bureau of Statistics figures on Gross State Product.

It is another indication that PAYE taxpayers are paying more than their fair share. The ACT has a higher proportion of people on PAYE than other states and territories.

The matching of both bureau’s figures makes the PAYE burden more stark.

When you use just the tax figures, you compare tax burden against (ital) stated (end ital) gross income. When you use gross state product figures you match income tax against (ital) all (end ital) income.
Continue reading “2000_01_january_tax comment”

2000_01_january_road toll forum

It has been a fairly good Christmas-New Year on the roads this season, comparatively speaking.

What! Surely, there has been “”carnage” on the roads. It has been horrific, etc.

Well, perception is different from reality. In recent years about 1900 people die on the roads in Australia each year. That is an average of 5.2 per day. The holiday period runs for 17 days from the first minute of December 24 till the last minute of January 9 – this Tuesday at midnight.

At time of writing it is Friday evening 13 days in. We should have had 68 dead, on average. We had had 70. This is the same as the ordinary death rate. Yet this was at Christmas-New Year when everyone is travelling great distances away from home or driving around half tanked. If you take NSW out of the equation, every state and territory had lower per-day death rates on the roads over the Christmas-New Year holiday than during the year as a whole.

Yet this year the message seems to have been that the toll was horrific and beyond acceptable limits. There are several reasons for this perception. The first is that the NSW toll was way above average. An disproportionately large amount of media comes out of Sydney and is NSW-centric. The ABC, SBS, The Australian, The Australian Financial Review and the Sydney Morning Herald mostly come out of Sydney. These are opinion-leading mouthpieces. So despite the fact that every other state and territory had death tolls well below the ordinary daily rate, the perception is one of mayhem.
Continue reading “2000_01_january_road toll forum”

2000_01_january_nation capital forum

Parkinson’s law about work expanding to fill the time available applies especially to government. The tasks will fill up to take whatever time, money and space is available.

It is certainly true of overseas visits. When the Australian Prime Minister goes overseas about a hundred public servants, attendants, journalists, photographers and television camera people go too.

So if 55 heads of government come to Australia for a Commonwealth Heads of Government Meeting we might expect 5000 people. These meetings seem to grow in inverse proportion to the importance of the work at hand. More Heads of Government are using their own aircraft — and therefore fill them up. There was a time the Australian Prime Minister went on commercial aircraft and there is no reason why that should not happen now.

Canberra should be able to house a Commonwealth Heads of Government Meeting. But it cannot. This is not because Canberra is too small, but because CHOGM is too big.
Continue reading “2000_01_january_nation capital forum”

2000_01_january_leader31jan r and d

The innovation statement brought down by the Government this week has much to commend it. Australia’s performance in research and development has been getting worse for a decade. The percentage of GDP Australia spends on research and development is well below that of major Organisation of Economic Cooperation and Development countries, and below even some countries emerging from the old Eastern Bloc, such as the Czech Republic. It has been causing a brain drain, as discouraged researchers left Australia to places where their talents were better recognised and those that had invented and discovered left to places which took a greater financial interest in developing.

In an increasingly globalised economy, Australia has been in danger of losing its position in the top rank of nations on the standard-of-living scale. In this environment, Australia could no longer rely on natural resources as the main component of wealth generation. The lesson of the past decade or so has been that brains and education generate wealth.

In an election year, it is easy to question the motives of a Government.
Continue reading “2000_01_january_leader31jan r and d”

2000_01_january_leader31jan dole checks

New rules for job-seekers announced last week by Community Services Minister Larry Anthony verge on the petty and vindictive. At present job-seekers are obliged to do between two and eight job interviews a fortnight. Under new rules that will rise to between four and 10. The more remote and fewer jobs there are in an area the fewer interviews have to be done. Mr Anthony hinted that people might be forced to move to places where there is more work — a move that would give rise to charges of hypocrisy given that Mr Anthony’s boss refuses to live where his job is. The unemployed do not have the luxury of moving much of the work to their preferred place of abode, however. Moreover, it is unfair to ask jobless people to move away from family and other support networks, especially for low paid work. It is an outlook that sees people as units of production rather than human beings seeking happiness.

The justification for the new rules appears to be the jobs boom in Sydney. The theory is that no-one serious about looking for work should be unemployed in Sydney. The fact that there are unemployed people in Sydney indicates they are not trying hard enough, so the Government will make they try harder by insisting that they go on more job interviews.

The bizarre thing about the new proposal is that it has put a higher burden on the unemployed in job-scarce regional Australia than on people where there is more work. In job-scarce places the number of job interviews an unemployed person has to do has doubled. In job-rich areas it has gone up just 25 per cent. True, in absolute terms jobless people in both areas have to do two more interviews each, but the increase in percentage shows how silly the Government’s thinking is. Where there are fewer jobs the percentage increase in job interviews goes up more.
Continue reading “2000_01_january_leader31jan dole checks”

2000_01_january_leader29jan redundancy

The collapse of Hunter Valley company National Textiles reveals again the urgency of the question of protecting employee entitlements. The Government and the Minister for Workplace Relations, Peter Reith, have attempted to pass blame to the states for the fact that 342 workers will lose their entitlements. The company can pay only $3.5 million of $7 million owed.

Mr Reith argued that the delay by NSW to agree to contributing to a national scheme was to blame. Not so. He and his government should have acted with leadership and diligence more than a year ago when the problem became evident. They should have put in place a comprehensive scheme to protect employees. That they did not indicates that their priorities lie with favouring employers when they should be acting more impartially. How long does it take to enact laws that will make it more difficult to misspend their employees money and to rearrange priorities of payments if they do?

The scheme proposed by Mr Reith is not good enough. It sets a cap of $20,000 per worker for owed pay and leave. Mr Reith argues the need for a cap because he says taxpayers should not have to pick up the tab for unlimited entitlements. He is right about taxpayers not picking up an unlimited tab. But he is wrong about a cap on entitlements. Mr Reith’s scheme should include a mechanism that prevents employers from using their employees’ money as working capital in the business. Employers should be made to pay entitlements into a trust fund, perhaps set up by the Tax Office. Employers are obliged by law to remit PAYE and other tax instalments taken out of pay every week or every fortnight as a matter of law. So it should be straightforward to insist that leave, long-service leave and other entitlements are also sent to the tax office, or at least a sizeable percentage be remitted.
Continue reading “2000_01_january_leader29jan redundancy”

2000_01_january_leader28jan doctors privacy

A debate has been running this week over access to medical records.

The Australian Medical Association wants medical records to remain confidential between doctor and patient unless each individual patient gives permission for the records to be used or the records are de-identified.

But there are other interests at stake, individual and general. On and individual level, it would be helpful if some or all parts of a patient’s records were available on computer to every emergency ward in the country. The records of an unconscious patient might show things like drug incompatibilities, allergies, illness records which will enable emergency doctors to avoid inappropriate treatment. On a general level, records of patients are an invaluable aid to medical research. At present the controlled trial is often the only medially accepted way of telling the value of a treatment. True it is the best way, but it is expensive and time-consuming. With the aid of modern data-creating techniques on computer, researchers could add immeasurably to medical knowledge. Moreover, in Australia there are huge untapped databases of raw information with the Health Insurance Commission (Medicare, pharmaceuticals and veterans), state health departments (hospital admissions) and private insurers. Further, if doctors abandoned paper records and comptuerised, data could be collected more easily. Cross correlations on treatment, lifestyle, age, sex, medication could yield important results which would be better than our present void in many areas of treatment.
Continue reading “2000_01_january_leader28jan doctors privacy”

2000_01_january_leader27jan gst

Prime Minister John Howard is suffering from the same difficulty faced by an earlier reforming Prime Minister, Gough Whitlam. Mr Whitlam bemoans that change was always difficult because those who supported change were at best luke warm, whereas those who were against a change were usually vehemently against it.

It is probably because it is more difficult to see benefits than it is to see the detriment of change. Opponents of change will seize on any point and make the most of it. And so it is with the GST on tampons. Women see an immediate detriment. At present there is no wholesale sales tax on tampons. After July 1, there will be a GST on them and their price will rise accordingly. In theory, the Government’s tax reforms should offset this because of cuts to income tax and other efficiencies gained by a more streamlined tax system. Women could pay the 10 per cent GST on tampons out of their tax cuts. The amount is trivial. But the symbolism of it is not.

So how could the Government have made such a political hash of it? — In a word insensitivity.

The issue could have been handled so much better. Instead, Health Minister Michael Wooldridge made inappropriate comparisons with shaving cream and condoms. The former has a wholesale sales tax on it now, so will come down in price with the GST. If the latter can be classified as a health item, surely tampons can be, too. Besides, tampons are a necessity. Dr Wooldridge made matters worse by accusing the Women’s Electoral Lobby of being funded by tampon manufacturers, as if women were incapable of running their own campaign.
Continue reading “2000_01_january_leader27jan gst”