Tag Archive for NSW

I’m no economist, but…

Australia’s consumer price index measures the changes in costs of average goods to most households. If the CPI rises, then wages and pensions need to rise so people have the same amount of money, in real terms, to spend on everyday items. That’s the simple explanation. A longer one is provided by the Australian Bureau of Statistics:

The Consumer Price Index (CPI) is a measure of changes, over time, in retail prices of a constant basket of goods and services representative of consumption expenditure by resident households in Australian metropolitan areas.
The simplest way of thinking about the CPI is to imagine a basket of goods and services comprising items typically acquired by Australian households. As prices vary, the total price of this basket will also vary. The CPI is simply a measure of the changes in the price of this basket as the prices of items in it change.

For practical reasons, the CPI basket cannot include every item bought by households, but it does include all the important kinds of items. It is not necessary to include every item that people buy since many related items are subject to similar price changes. The idea is to select representative items so that the index reflects price changes for a much wider range of goods and services than is actually priced.
The total basket is divided into a number of major commodity groups, subgroups and expenditure classes. It covers items such as food, alcohol and tobacco, clothing and footwear, housing, household contents and services, health, transportation, communication, recreation, education and financial and insurance services.

Got it? Good. The CPI measures increases. It does not provide a justification for further increases.

In the case of items like insurance and rent, it is obvious why they will go up in line with CPI increases – the providers need to cover higher costs. Rent is someone’s income as much as it is someone else’s expense while your insurance will need to keep pace with the value of the items being insured. But I cannot work out why CPI increases are used to justify government charges like train fares, etc. See this quote from the Sydney Morning Herald:

there has been no real increase in CityRail fares since 2010. The former government effectively froze fares in its last year in office, while the current government lifted 2012 rail fares only enough to offset consumer price index changes since 2010.

Wouldn’t further increasing charges to keep pace with CPI just keep pushing the CPI up?

There is a cynical explanation – cost saving. But most government charges are percentage or bracket based anyway, so they get increases through payroll and income taxation, GST, etc. If someone has a non-cynical explanation for how such increases can be justified on the basis of CPI increases, I’d love to hear it.

Pleading the Second in NSW

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When Senator Charles Schumer (D-NY) visited a high school in upstate New York in May 1991, he received an unexpected civics lesson from an unexpected source. Speaking on the timely subject of school violence, Senator Schumer praised the Brady Bill, which he helped sponsor, for its role in preventing crime. Rising to question the effectiveness of this effort at gun control, a student named Kevin Davis cited an example no doubt familiar to his classmates but unknown to the senator from New York:
It reminds me of a Simpsons episode. Homer wanted to get a gun but he had been in jail twice and in a mental institution. They label him as “potentially dangerous.” So Homer asks what that means and the gun dealer says: “It just means you need an extra week before you can get the gun.” (Cantor 1999)

The NSW Government has recently announced some changes to gun laws to help restrict the flow of weapons and ammunition in the wake of a series of shootings.

Most people would not disagree with two aspects of the proposed changes, being (1) a specific offence for drive-by shootings and (2) an increased gaol term for firing at a home as part of an organised criminal activity. Most people would also not take issue with the plan to tighten ammunition sales and carry gun licences when the weapons or their ammunition is in your possession. After all, to drive a car, you need to have your licence with you.

However, those involved in the gun trade, plus farmers and recreational shooters are seemingly outraged, as the Central Western Daily reports:

Bullets & Bits part-owner Ray Hawkins said it was unfair that law-abiding gun owners would be restricted by the proposal.
“Why should we have to prove it [ownership]?” he said.
“It seems to be a knee-jerk reaction.”

Yes, why would anyone need to prove they have a right to access lethal weapons?

Not to be outdone by the Central West’s esteemed publication, the Port Macquarie News reported:

PROPOSED changes to toughen laws around the ownership and sale of ammunition will not reduce firearm crime, a dealer says.
The draft laws put forth by the NSW Government aim to combat organised crime by making it more difficult to buy ammunition for stolen and unregistered weapons.
But Port Macquarie ammunitions dealer David Lenord said the legislation was “stupid”

As this thread on Seabreeze.com.au shows, the discussion can sometimes get a little unruly and nonsensical:

will appease the wallys in la la land that good ol uncle Barry is doing someting tho .Too lttle too late .Just do away with the war on drugs ol mate and the problem will be solved

(I think he was saying gun crime will go away if we stop targeting drug crime?)

Unlike Homer, Barry’s law doesn’t mean you’ll have to wait an extra week to get your gun or ammunition, even if you are “potentially dangerous”. In NSW, it will only mean you wait until you sign the paperwork.

Reference
Cantor, P., 1999. Atomistic Politics and the Nuclear Family. Political Theory, 27(6), pp.734-749. Available at: http://www.jstor.org/stable/10.2307/20688622 [Accessed April 1, 2012].

Yakkity-YAC

I was recently asked to give a short speech to a regional gathering of youth advisory council members. The young people had come from NGOs and Councils across the Southern Highlands, Wollondilly, Camden and Campbelltown areas. Given my experience in YACs at all levels, I felt I had something important to offer the attendees.

Below is the speech I prepared. Please note, as anyone who has seen one of my presentations will attest, I rarely stick very closely to the script.

At the start of 2010, I put my signature on the YAC report from the previous year. That year, we had made some really solid recommendation to the Government, but it didn’t seem like much had come of it. YACs can be a bit like that.

What are YAC meetings like?
Boring!!!

They can drag on for hours and often nothing gets resolved. That’s just what government does. But you also get to learn a stack of stuff. You make contacts. You get friends and potentially you can get jobs out of it.

I have the unusual perspective of serving on youth advisory bodies under the Howard and Rudd Governments, and also in the dying days of a vastly unpopular government last year as Chair of the 2010 NSW Youth Advisory Council.

In those roles, I have seen the committees treated in lots of different ways. I have seen indifference, feigned interest, real interest from the Minister and the Government, genuine interest from the Minister but indifference from the Government and all sorts of interactions in between.

On the National Youth Roundtable, I was fortunate enough to travel to and from Melbourne and Canberra several times. We stayed in pretty great hotels, had pretty awesome meals and I got to hang out with some great people. We worked on a really detailed and interesting project aimed at addressing mental health concerns for young people. On the NSW YAC, I have again worked with some really awesome people from right across the state on a whole range of projects.

On the 2010 NSW YAC, we focused on four issues: young driver licence restrictions; access to higher education for young people from rural and regional areas; participation of young people in their local areas; and climate change.

[Here I relayed a story about fronting a press conference, unexpectedly, with then Minister for Roads David Borger about our young driver report]

Failing isn’t really failing. It’s just an opportunity to learn how to do better next time. So if you walk into a meeting and think that you have enough support to push something through and then it doesn’t happen, what do you do? You keep working at it. You learn more about your topic and you come back to the table more able to win the debate next time. That’s where YACs can be really helpful. You can find it endlessly frustrating, but in the end, there might just be something that gets through the layers of bureaucracy and really makes a difference.

I like to think of it this way, you might not really find that you have enough skills to fly at the end of the day, but if you end up falling, you’ll do it in style.

[Give due credit to Pixar for this line, which is from Toy Story]

That 2009 report I mentioned came back to me a few weeks ago. I received a Facebook message from a friend. He congratulated me on the report, as he had come across it in the course of his work and was summarising it for his boss, so she could keep up with youth issues in the community. That friend of mine works for the Prime Minister.

Coal Seam Gas – Storify


Coal Seam Gas Concerns

This was written for a journalism assignment:

DRAMATIC footage of a foamy discharge from a coal seam gas well in south western Sydney has added to concerns around the controversial industry. The video, filmed by a Greens member of the New South Wales parliament, appears to show an unidentified foamy chemical mix being forcefully expelled from the well. Greens MP Jeremy Buckingham, who filmed the video expressed concern about the location of nearby housing and water facilities and called on the NSW Government to investigate the incident.

The incident came amongst growing opposition in Australia to the controversial industry, which uses a broad mix of chemicals to force gas up from within underground coal seams. For Buckingham and others concerned about the environmental impacts, especially of pollutants, from the coal seam gas industry, the discharge provides further impetus to question existing practices.

In parliament, Buckingham’s questions to Duncan Gay, who represents the Energy and Resources Minister in the Upper House, were met with obfustication. Gay responded to Buckingham’s request for a government inquiry into the industry by stating: “the Government provides a number of attractive incentives to encourage exploration, development and utilisation of the coal seam gas industry” and promised to refer to “refer the question to the relevant Minister.”

Community groups in areas such as the NSW Southern Highlands have embarked on vocal campaigns opposing coal seam gas extraction. Hume Coal, a joint venture between Korean steel-maker POSCO and Australian-owned Cockatoo Coal, is conducting exploratory activities around the Southern Highlands town of Sutton Forest.

Hume’s activities are being closely monitored and scrutinised by the Southern Highlands Coal Action Group (SCAG’s), whose “Shoo Cockatoo” campaign has crystalised local opposition to the project. SCAG’s activities are also being closely monitored – by Hume Coal. The company noted strong community opposition in their Review of Environmental (REF) factors prepared for the NSW Government as part of the exploration application. They gave an account of SCAG’s history, and noted the group’s primary concern related to future mining activities, not to exploration. The REF says community concerns “subsidence damage, dust and noise from surface facilities, damage to the aquifers and water supply catchment, changes in the character of the area and property values.”

Coal seam gas mining is not the only source of anxiety. As the Hume Coal REF notes, objections to the Sutton Forest activities “largely revolve around future mining”. Such mining is likely to include long wall extraction of hard coking coal for export. The community’s fears are not unfounded. A 2008 NSW Government inquiry into the impact of mining on natural features of the Southern Coalfield found there is every likelihood of  surface damage when mining occurs. The report notes, “With few exceptions, at depths of cover greater than about 200m coal cannot be mined economically by any mining method without causing some degree of surface subsidence”. Hume Coal’s REF shows the Wongawilli Coal Seam lies at a depth of almost 200 metres, indicating a strong probability of effects such as surface subsidence. The report also states “non-conventional subsidence effects (including valley closure, upsidence and regional far-field horizontal displacement) regularly occur” in the Southern Coalfield.

In the Illawarra region, which also has a long history of coal mining activities, an estimated 3000 people recently participated in a beach-side protest against coal seam gas proposals. That protest was sparked by plans by mining company Apex Energy to drill 15 exploratory boreholes in their search for coal seam gas. Apex’s preliminary environmental assessment, prepared for the NSW Government in 2007, shows an exploratory lease covering most of the Illawarra region north of Lake Illawarra. Community group Stop CSG Illawarra has expressed concern on the impact of these wells, and resultant mining operations, on the quality of water, food and amenity in their region.

The group also suggest significant environmental impacts of coal seam mining, a contention supported by a determination of the NSW Scientific Committee, which is established by the Threatened Species Conservation Act. In recommending protection for Coastal Upland Swamp environments, which are abundant throughout the Illawarra (and the Apex Energy licence area), the committee notes coal seam gas mining is likely to have “significant environmental impacts on hydrological and ecological functions of Coastal Upland Swamp”. The recently-elected NSW Coalition Government has imposed a 60-day moratorium on new exploration licences for coal seam gas, which started on May 21. The moratorium was imposed to allow the Government to develop a new strategic land-use policy.
However, the freeze has no effect on existing licences, as residents in the Southern Highlands discovered when Hume Coal began their exploration hours before the moratorium was announced.

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