Monthly Archives: December 2012
Queensland Seeking to Pay the Fare for the NDIS Bus
It appears, less than a week after the last Council of Australian Governments meeting, that Queensland has jumped firmly on the National Disability Insurance Scheme bandwagon. Queensland Premier Campbell Newman today announced a “timeline” for providing funding toward the NDIS. Premier Newman also confirmed that he has written to Prime Minister Julia Gillard with a formal bid for a funding split between his state and the federal government.
Mr Newman has written to the Prime Minister and is seeking a 50-50 funding split between Queensland and the commonwealth for funding of disability services under the national reform to the disability sector. The Premier flagged this offer last Friday while in attendance at the COAG meeting of first ministers.
Campbell Newman has however reiterated that his government will wait until the budget is in surplus. Therefore he has said that the decision to commit money to the disability insurance scheme will be delayed by two years.
A further element of the promises today from the Queensland Premier was a pledge to begin increasing funding of the disability sector from 2014, with plans to reach the national average spend on disability by 2018, the year that the NDIS will be fully operational. This will mean, in dollar terms, an increase of $868 million over the four-year period from the current levels, very low compared with other states, to $1.77 billion in the year that the NDIS is due to come into force.
The offer is similar to the deal reached between New South Wales and the Gillard Government, a which will see the national government contribute a little over 51% of the funds for the NDIS and the New South Wales Government over 48% of the shared contribution.
The offer of an even share from the Queensland Government will likely receive approval from Julia Gillard. However, this evening the ALP Government has responded to the offer from Queensland, saying the spending plan does not contain enough funds for the full implementation of the disability insurance scheme.
The Australian Capital Territory has also committed to the full rollout of the NDIS. Because of the size of the population in the territory, the ACT Government has been able to guarantee that, just a year after the launch site is established, approximately 5000 disabled Territorians will start being covered by the full national disability scheme. And by 2016-17, the scheme will be fully operational in the territory.
There is however one element of the NDIS rollout that the Newman Government has not committed to. From the start of the negotiations at COAG, the Liberal Government in Queensland has refused to commit to funding a NDIS launch site, a minor commitment which would have cost between $20 and $30 million dollars.
It is somewhat true that a launch site in Queensland is now redundant, with five already agreed to in other states and territories. Well, that is true at least in theory. Originally the Prime Minister had called for bids from four state and territory volunteers, but thanks to a somewhat joint effort from NSW and Victoria there are now five.
Queensland offering to establish a launch site however, would be an inexpensive symbol of their commitment to the future of the National Disability Insurance Scheme, above and beyond the political promise they made today. A launch site in Queensland would be priceless in terms of the information it would provide. Another launch site in Queensland would help ensure that the full implementation of the scheme is informed by the best, most robust data available.
The next move requires Queensland to come back with a higher offer.
Be Cynical About the Timing of Electoral Law Changes, Not What They Seek to Ensure
New electoral laws passed under the Gillard Government may well have a not insignificant impact on election results according to an examination of Newspoll surveys. Under the legislation, people who are not currently enrolled, but are, or become eligible to vote will automatically be placed on the electoral roll.
The new laws which would see approximately 1.5 million people, mostly new voters, added to the Australian Electoral Commission roll could change election results by up to 1.5%.
While 1.5% may not actually seem like a particularly large percentage, in politics it can mean the difference between a term or two, perhaps three in power. In close contests such a margin could easily mean the difference between seizing government and languishing on the opposition benches for three years.
Under these laws, those with the most to lose are the Liberal and National Party’s. It is a long-observed trend that young people generally vote for Labor, even the Greens. So of course, Liberal Party MP’s were yesterday quite concerned about the possible effects to their vote from automatic and compulsory electoral enrolment.
But is that discontent and anger justified in terms of the way the franchise is conducted in Australia?
In Australia, whether you believe in it or not, we have compulsory voting.
Every three years those of voting age are required to vote in the national poll. Most do vote, with a percentage casting informal votes. But all in all, most people vote and do so correctly. There is also a relatively small number of people who fail to turn up to their local polling place at all and a fine is imposed on them.
So, with this compulsory voting system there should be an understanding that you are automatically enrolled to vote.
Although in conflict with my generally liberal beliefs, I believe that everyone of adult age should be required to head to polling booths on election day to vote. I believe this because I see it as the best chance of electing a government that is generally representative of the people.
But of course I am firmly in favour of a secret ballot and if you are silly enough to use your opportunity to vote just to doodle all over the ballot paper or write silly names or words next to candidates, well, then, feel free to go ahead and act like child. In fact, bugger off.
Anyway, back to the crux of the issue at hand.
While the new AEC laws are not that dramatic in terms of enfranchising all that should be voting, there is an argument that could be sensibly made about the timing of the amendment.
The new clause comes in at a time when the ALP is struggling electorally. The Labor Party have been behind in the polls for a prolonged period of time and still, despite some narrowing in the margin, look set to lose.
So of course, there is scope, in that sense, for some cynicism.
The law should have been the same way from the beginning of the commonwealth, or at the very least, if Labor were so worried about people missing out on the vote, from the start of their administration which began in late 2007. But no, full voter enrolment is apparently a newfound thing for the ALP.
Anger about the laws themselves is misguided unless the Liberal Party supports changing the electoral rules to allow for voluntary voting. It’s not “rorting” the system when the system is compulsory voting, it’s ensuring that all people of voting age will have the opportunity to vote.
Feel free, however, to be cynical about the timing. Ask yourself the following questions: Why now? Why not from the beginning of the federation? Why not from the beginning of this Labor Government?
Hazy Days For Washington State
The state of Washington in the United States of America has become the first state in the country to legalise marijuana. The move comes a month after the US election which saw the proposition to make the drug legal receive the votes needed for it to pass into law. Recreational drug users took to the streets to light up in celebration.
And there is another US state which will see similar laws come into force in the coming weeks. Colorado also voted during the national election on a proposition to legalise marijuana.
Under the new laws in Washington state, recreational smokers over the age of 21 will be able to possess up to 28 grams of cannabis or up to 450 grams of baked goods containing marijuana. Having in your possession, up to 720 ounces of the drug in liquid form is also legal under the law which came into force in Washington on Thursday.
There are however some conditions attached to the new law.
Selling, cultivating and giving away marijuana for free, even among pot-smoking buddies will continue to be illegal. And despite the public pot party overnight, toking on marijuana in public will still be verboten.
This begs the question: what has actually changed at present?
The answer is that not much has changed so far. The only differences for now are that you may possess the aforementioned quantities of the once illicit substance and smoke or ingest those products in private.
However, you will have come by the drug in an illegal manner and universities and workplaces will have the ability to ban it on their premises.
State authorities, under the law, will have until December next year to establish legal cannabis trading houses which will be taxed and licensed in much the same manner as liquor-selling businesses currently are.
There is some major uncertainty about the future of the laws in Washington state and Colorado.
The drug is still illegal under federal law and the federal government may well decide to override the two states’ laws, though this has not yet been confirmed.
It is true though, that the Justice Department did not move to override the Washington law before it came into effect and so perhaps this points to the possibility of letting the law in Washington stand as well as the path to legalised cannabis in Colorado being allowed to continue.
The US Government intervening and overturning the two state-based laws would however, actually be quite a good thing.
Cannabis and indeed all drugs, are substances which are harmful to the health of all users, especially long-term recreational drug-takers.
The drug Cannabis is responsible for bringing on mental illnesses which can have devastating consequences in the lives of those experiencing such problems and result in similar negative consequences for the community around users.
Legalising drugs, including marijuana, will not suddenly make them less harmful to the public. They will still cause mental illness in people taking such substances and those effects will continue to harm both the drug-taker and potentially members of the public around them.
And legalising drugs will not cut down on their use either. Legalising drugs would likely mean that more people, some of whom had perhaps wanted to engage in drug-use but did not partake because it was illegal, would take up the habit and this would not be good for both healthcare and crime budgets. When you legalise drugs, you remove the stigma which is behind stopping some people using them.
It is important to acknowledge that the so-called ‘war on drugs’ is a battle that governments around the world are losing and will continue to lose in varying degrees across the globe.
But legalising drugs is no answer.
Even the most tightly regulated drug-use schemes will have their problems unless scientists discover a way to remove the harmful compounds from the drugs, or they discover some kind of way to shield the brain from the potentially very dangerous effects of such chemicals.
Whichever path governments choose, they are going to face costs. But trying to stop harm to consumers of drugs and those around them should be the highest priority.
More Misguided Industry Policy
The Gillard Government has announced another plan that, in their oodles of wisdom, they believe will perform some truly heroic feats in terms of saving the ailing Australian manufacturing sector.
Prime Minister Julia Gillard, on a visit to OneSteel yesterday, announced that her government would set up an anti-dumping commission to police the dumping of imported goods in Australia which are sold at below cost price. The Prime Minister also announced a doubling of the Customs’ Anti-Dumping squad as part of the plan.
To fund the plan, Australian Customs will receive extra funding of about $24.4 million over four years which will be directed towards furthering the aims of the commission and its investigators.
This plan comes after the Coalition’s announcement in November last year that they would establish a body to investigate anti-dumping if they were occupying the government benches.
According to the Australian Customs and Border Protection Service’ Anti-Dumping website dumping “occurs when goods are exported to Australia at a price that is below the ‘normal value’ of the goods. The website defines the ‘normal value’ of goods as “the domestic price of the goods in the country of export.”
The Customs website acknowledges that dumping is not illegal under international trade agreements, but that “remedial action may be taken where dumping causes (or threatens to cause) material injury to an Australian industry.”
There are a few observations to be made about both the announcement by Prime Minister Gillard and dumping itself.
The first is about the increased bureaucracy as a result of the plan. How a larger public service will substantially resolve what is termed as a problem for Australian industry is uncertain. By virtue of the fact that dumping is not illegal under international trade agreements, surely resolving the vast majority of cases in a positive way for Australian businesses will be a near impossible outcome.
What’s even more sad is that both sides of politics agree that a response needs to be initiated. Both sides of politics want the same kind of action in this area. They both think the same action will provide some significant relief to industry. Of course, industry groups think this will happen too.
Both sides of politics are living in a policy fantasy land akin to being on some kind of LSD trip.
Australian manufacturing, even if regularly successful in prosecuting anti-dumping cases, will still be at a distinct disadvantage compared with Asian companies when it comes to producing and selling cheap goods on a large-scale. Our inputs costs will always be higher than in Asian countries and therefore, so will the costs of our manufactured goods.
Next, why doesn’t someone in government think of the consumers?
Would it not be absolutely fantastic if we could receive even cheaper goods, especially when cost-of-living pressures are impacting on consumers in our domestic marketplace?
Many people have already shifted to online shopping through overseas businesses because of their ability to offer cheaper products than we could ever hope to have offered to us domestically and good on them for doing so. If ever there was an example of consumers being rational, then the decision to shirk Australian businesses is a positive example thereof.
Of course, the response, endorsed by both sides of politics is designed to appear as if they are doing something to support industry. And industry groups actually think the move will help them survive
The reality however, is that there is little that they can, or would be prepared to do in order to really protect what are largely uncompetitive industries in global terms.
Whatever happened to focusing on the things that we are good at as a nation? The areas of the economy where we can actually compete with the world and where we have a competitive advantage.
Early Convergence Commitments and More On the Way
On Friday Communications Minister Stephen Conroy released the first elements of the Gillard Government’s response to the Convergence Review. The review was set up by the Labor Government in order to respond to the changing media environment which has seen the introduction, within the last two decades, of digital media sources.
Initial policy responses include a decision not to allow a fourth free-to-air commercial television network and the extension of the broadcasting licence fee rebate which will eventually lead to a permanent reduction in fees levied. Further, Senator Conroy also announced that the ‘75% rule’ would face the parliament. And finally, the minister announced a change to local content rules.
The Gillard Government has decided that a fourth free-to-air commercial television broadcaster will not be sought by the government, at least in the short-term. However, the possibility of a sixth broadcaster has not been ruled out completely.
In the meantime, community television will be allowed to broadcast on the spectrum not made available for a fourth network until at least the end of 2014. This means two more years of without the prospect of another television station.
In terms of certainty for existing networks, this decision is positive. It means market share will not be as hard to maintain as it would be in the event of another competitor in the field. But at the same time it is a loss for competition.
Existing television stations have been granted another reprieve by the Minister for Communications. Their broadcast licence rebate will be extended for one more year. After that 12 month period has passed, licence fees will drop to just 4.5% of revenue, a 50% decrease.
This move can only be seen as a positive, decreasing the costs associated with operating a television network.
Perhaps the greatest outcome, at least in theory, is Senator Conroy’s announcement that he would seek parliamentary approval for the removal of the ’75 percent rule’. This rule dictates that no one person can control broadcast interests which have an audience reach of more than 75% of the population of Australia.
The change will have to make it through parliament, but that would seem a fait accompli, with the Liberal and National Party coalition unlikely to block such a move by the Labor Party. The Greens will probably voice their opposition to the plain, but it will likely come to nothing.
Where the move on the 75 percent rule moves from great in theory, to very ordinary in practice is that it will be tied to local content provisions in regional areas. No business should have government effectively making major business decisions for them.
For this reason too, increasing local content obligations across the broader television media landscape is also a poor decision on the part of the ALP.
The primary channels of the TV networks will see their content obligations remain the same. They will be expected to broadcast 55% local content, a requirement imposed by the former Howard Government in 2005.
Under the new plans too, commercial television multi-channel broadcasters will have to show 730 hours of local content in 2013. In 2014 this will increase to 1095 hours. For 2015, the target will be 1460 hours of local content.
The new rules will provide what has been termed an incentive. If a network shows first-release drama on a digital multi-channel, then that hour of broadcast will actually count for two hours under the new obligations.
The so-called ‘incentive’ is silly and should not be used to sugarcoat what is a silly idea from government.
Television networks must be allowed full control of content and therefore their individual branding. All content should compete for transmission on a level playing field. Media companies will not always make good decisions, but to say that governments can make good business decisions for broadcast media companies, which they are actually doing through content requirements, is an exercise in fantasy.
There are more changes to the media landscape flagged for 2013. How much more control of the media will the government seek in 2013?
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