“State of the States” Misleading and Shallow

We often talk about the numerous shortcomings of GDP as a performance indicator, and yet it continues to dominate our airwaves.

Today the ABC and other media outlets are uncritically reporting a “State of the States” report by CommSec, which purports to rank the performance of the States. The ranking system rewards economic and population growth. As far as I can tell it does not include in its ranking criteria things like protection of habitat, how endangered species are faring, the gap between rich and poor, quality of education, quality of health services, and numerous other important indicators.

I can’t see any reference to traffic congestion, housing affordability, or the cost of living pressures on older people arising from population growth. It is a pity such reports, which are shallow and misleading, receive such uncritical media acceptance.

Wild Weather But Climate Action Grinds to a Halt

There is a massive disconnect between the weather we are experiencing – drought in Queensland, bushfires in New South Wales, wild winds in Victoria, to say nothing of the typhoons in India and Japan – and the steps being taken by the new Liberal Government to bring action on climate change to a halt – disbanding the Climate Commission, stopping the Clean Energy Finance Corporation, and drafting legislation to end the carbon price.

At the very time when the signals from our climate are that we need more action on climate change, not less, it is deeply irresponsible of the Liberal Government to abandon measures which are reducing carbon emissions.

I have noted that people who draw attention to the increasing frequency and severity of extreme weather events – floods, droughts, bushfires and storms – sometimes get accused of seeking to profit from the tragedy and misery of others. This is pathetic nonsense.

When an accident happens on a country road, and the local MP demands the road be improved, I don’t assume they are trying to profit from the tragedy and misery of others. I assume they want to make the road safer, and make the world safer.

We don’t assume that people, who demand investigations into plane crashes, or recalls of cars and trucks following crashes, are seeking to profit from the tragedy and misery of others. If a Chairlift or a Ferris Wheel causes an accident we don’t assume people who demand action are seeking to profit from the accident. We assume they want to prevent repeats, and make the world safer.

So it is with climate change. It is just not right to leave to our children and grandchildren a legacy of floods, droughts, bushfires and storms, and people who point out the increasing frequency and severity of these events are doing us all a service.

Victoria Legal Aid Deficit

It is troubling that Victoria Legal Aid has tripled the loss it made last year, posting a $9.8 million deficit and cutting staff and clients.

This deficit re-inforces the point I made in late September, that legal aid funds are too precious to go on unmeritorious appeals against sentence by convicted killers who have appropriately received lengthy sentences and are simply trying it on.

Adrian Bayley should not have received legal aid to appeal against his sentence. This case was no Lindy Chamberlain. The facts were not contested, there was no gaps in the prosecution case, and the sentence handed down to Mr Bayley was entirely within the judge’s discretion, and entirely appropriate for a man convicted of rape and murder who is in fact a repeat offender.

Scarce legal aid dollars need to go where they will do some genuine good.

Live Export Supply Chain Breaches in Jordan and Kuwait

I have been informed by Animals Australia that serious breaches of Australia’s live export rules have occurred in Jordan and Kuwait on the eve of the Eid al Adha, the Festival of Sacrifice, which regrettably in the past has seen a heightened level of animal cruelty.  This has involved things like animals being stuffed alive in car boots and being killed by being stabbed to death while fully conscious.

I am concerned by reports by Animals Australia that animals are being sold at roadside stalls.  I believe that the Department of Agriculture has been made aware of this.  Animals Australia alleges about 10,000 Australian sheep exported to Jordan have "leaked" from approved supply chains, and been sold in unofficial markets.

If this is true, it would be a major breach of the live export rules put in place in 2011. I have written to the Minister for Agriculture, the Hon Barnaby Joyce, seeking his urgent attention to this matter.

The live export trade is not only a failure of ethics but a failure of economics. We should move towards a viable alternative – a local chilled meat export industry that protects and creates more Australian rural jobs, results in higher profitability through value added opportunities and addresses the public’s welfare concerns.

In 2011 the Australasian Meat Industry Employees Union (AMIEU), estimated that some 3,500 direct employment meat processing jobs have been lost because of the Australian live animal trade. World Society for the Protection of Animals research indicates that the direct and indirect jobs created by growing the domestic meat processing industry would in fact exceed those that would be lost from the live export trade.

Transitioning away from live exports and into domestic processing would be better for both animal welfare and for Australian jobs.

“Very Generous Immigration Program” Pushing Out Would Be Home Buyers

Australia used to be the country where everyone could afford to have a home of their own. But for far too many of today’s young Australians, that is no longer true. Housing affordability has declined.

Treasurer Joe Hockey confirmed yesterday in New York in an interview with CNBC that our large migration program is one of the key drivers of housing unaffordability for young people.

He told CNBC that “Australia is a long way from a housing bubble….The fact is we have a very generous immigration program and we have very slow supply coming in the market”.

Mr Hockey is correct that the high migration program is a driver of rising house prices in Australia. Where I differ from Mr Hockey is that I don’t believe rising house prices is a good thing. The fact is that housing is a necessity, like food, water, electricity and petrol. No-one cheers when the price of food, water, electricity and petrol goes up – why should we cheer when the price of a house goes up?

That cheering drowns out the quiet sad shrug of a generation being locked out of the opportunities which my generation and the one before me had the good fortune to have.

Unnecessary Tragedy in the Bangladesh Garment Industry

The news of more unnecessary deaths in the Bangladesh garment industry is distressing and requires action by the international community.  At least 10 people have perished in a fire at the Aswad Knit Composite factory, with the clear implication that the fire and safety measures at the factory were grossly inadequate. 

This follows the collapse of a garment factory in April which killed over 1100 people.

While building and factory owners in Bangladesh must be held to account for these tragedies, Western companies and consumers bear some responsibility.  While we continue to seek ever cheaper clothes, mindless of the conditions in which they are produced, tragedies of this nature will continue.

There are simple steps that companies and consumers in Australia can take. 

Many Australian companies have taken positive and responsible steps to promote improved health and safety standards in the Bangladesh garment industry. 

Indeed, more than 80 countries have signed up to the Bangladesh Fire and Safety Accord.  Companies like Cotton On, Kmart, Target, Forever New and the Specialty Fashion Group have committed to this Accord.  I encourage other companies to join them by signing up to the Accord, and follow through with its implementation in Bangladesh.

The $20 billion garment industry is an important part of the South Asian economy, providing employment to hundreds of thousands of workers.

Free trade has contributed to lifting of millions of people out of poverty.  But free trade does not and should not embrace factories that disregard fire and safety regulations, such as the factory that collapsed in April due to the illegal addition of three extra stories.  Our commitment to free trade must be coupled with an equal commitment to fair and ethical trade.  I am confident that Australians, with their sense of a fair go, are more interested in preventing tragedies of this nature than saving a few cents on a shirt.

Abbott Wants to Give the Farm Away - Literally

If reports that the Prime Minister wants to complete a Free Trade Agreement (FTA) with China within 12 months are true, Australia stands to be the biggest loser.

Everyone acknowledges the China FTA negotiations have gone on for a long time.  But that reflects the vital interests at stake –

Ø  interests like access to the Chinese market for Australia’s efficient agricultural and horticultural producers;

Ø  interests like Australia’s innovators – software developers, often in strategic areas like mining, and music and film producers, who are constantly denied making any money in the Chinese market because of flagrant intellectual property piracy; and

Ø  interests like wine producers and manufacturers who face extortionate tariffs when exporting to China, making it all but impossible to do so.

China has to come to the party on a range of Australia’s interests.  Unless China agrees to take action on the things that are important to Australia, it would be foolish to give in to China’s interests in more generous treatment of investment by State Owned Enterprises, and visa concessions.

That would not be in Australia’s interests, either in the short or long-term.

Mr Abbott is reported to have said, "I’ve always taken the view that you should take what you can get today and pitch for the rest tomorrow when you’ve got a strong foundation to build upon.”

That is simply not negotiating.  That is just giving the game away.  Australia has been strong in negotiations because China will not concede ground on areas of importance to Australia, while at the same time China has made ambitious demands of Australia.

To say “well that’s fine, we’ll take what we can get today", is a recipe for disaster.  It shows a complete lack of understanding of how international negotiations work.  It shows a complete lack of regard for Australia’s interests.  The Prime Minister is effectively allowing Australia’s farmers and innovators to be denied access to potentially the world’s biggest market.

If you can’t get concessions out of China in comprehensive negotiations where their aspirations give you some leverage, what possible hope do you have “tomorrow”, when rather than a “strong foundation to build upon”, you’ve completely given the game away and don’t have any foundation to negotiate with at all.
 
The Chinese negotiators must be rubbing their hands with glee at the naïve statements of our Prime Minister.  One can only hope that sanity will prevail.  Australia could benefit from an FTA with China, but only if China gives real ground on Australia’s legitimate interests.