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Author: Arthur Chesterfield-Evans

24/11/2022

iCare- a letter to the Editor of the Sydney Morning Herald

24 November 2022

Dear Editor,
iCare was set up by private insurers on their model with the NSW government keen to minimise costs, take profits and distribute them (just before the last election). So iCare delays or refuses treatments to the needy, and was very careless about what their Pre-Accident Average Weekly Earnings (PIAWE) were. Many accident victims complained that they were underpaid, and that was before their compensation was stopped or cut because they were certified partially fit to do jobs that could not be found.

The overheads of Medicare are about 5%, iCare about 38%, so it is totally inefficient as well as incompetent with bloated salaries for the top executives who think it is a financial problem rather than a medical one and hence are unable to solve it. The real solution would be to fund Medicare as the only medical system and let the insurers have widespread income-guarantee insurance.
Sincerely
Dr Chesterfield-Evans- works as a GP specialising in Workers Comp and CTP injuries.

Here is an article from today’s SMH

EXCLUSIVE
Injured workers to lose benefits
Adele Ferguson

Greg Dayman is one of almost 400 workers who will get a Christmas ‘‘present’’ they will never forget.

The Sydney construction worker was badly injured on a building site in 2013, which left him unable to work with chronic pain in his neck, the side of his head, down his arm, torso and leg.

In 2017 he was among thousands of employees whose compensation payments to cover wages were cut as part of controversial reforms to the state’s scandal-ridden icare organisation. Changes to the legislation terminated injured workers receiving weekly wage benefits after five years unless they met a whole body impairment assessment of more than 20 per cent.
However, he still received medical or health benefits. Now he has found out even these will be cut from December 25.

‘‘It’s another upper-cut,’’ he said. ‘‘And to do it on Christmas Day, that’s just cruel.’’

Dayman is one of 395 workers facing a grim future as a crisis at icare deepens, with a document prepared by the State Insurance Regulatory Authority (SIRA) revealing the workers’ compensation scheme ‘‘has deteriorated to the point the longer-term sustainability of the scheme is under threat’’.

NSW Auditor-General Margaret Crawford will hold a performance audit into icare next year that will examine how effectively key risks are managed, including the rising cost of workers’ compensation claims and its payment processes. Dayman said he lost everything after his injury.

‘‘I lost my health, my career, and financially I’m in a position that if my specs break I can’t afford to buy them. The system dehumanises you, so you give up.’’

He does now qualify for a disability pension but will have to rely on Medicare for future medical treatment. ‘‘I have been suicidal at times because of the system and the way it treats you,’’ he said. ‘‘My time is spent trying to survive.’’

In the executive summary of SIRA’s review into icare’s Nominal Insurer Improvement Plan, dated September 26, the authority said it had a ‘‘low level’’ of confidence icare’s strategy would improve return to work rates and overall performance.

In 2015-16, 93 per cent of injured workers were back at work 26 weeks after their injury, compared with 84 per cent in August 2022.
SIRA said it believed icare’s strategy ‘‘encompasses an increase in work capacity decisions to cease worker benefits instead of focusing on improving health and recovery through return to work’’.
Richard Harding, icare’s managing director and CEO, said it was the insurer’s role to implement the law, and legislation ‘‘does not give icare any discretion to act outside that’’. ‘‘Tailored and individualised support is provided to workers transitioning from the workers’ compensation scheme,’’ he said. ‘‘This may include support from NDIS, Community Support Services and Medicare in conjunction with their GP.’’

This masthead this week revealed a third underpayment scandal of injured workers and concerns raised by NSW Treasury in August that a deterioration in icare’s finances would require insurance premiums to rise 33 per cent by 2025, or $1 billion a year, to cover the shortfall.

Against this backdrop, the icare board granted pay increases to 116 of its executives, including Harding, making him one of the state’s top-paid public servants, earning more than $1 million a year.
Shadow Treasurer Daniel Mookhey said icare’s finances were in a catastrophic condition.

‘‘They’ve lost billions. They are planning massive premium hikes. And their next step is to expel even more injured workers from the system,’’ he said.

‘‘It is a ruthless tactic stemming from their financial desperation.’’
In a statement, SIRA chief executive Adam Dent said its views on the Nominal Insurer Improvement Plan in September were made with limited detail on how the plan would be executed.

‘‘Over recent weeks, SIRA has continued to engage with icare to address information gaps, including detailed briefings on managing IT and transition risks associated with the onboarding of new claims services providers.’’

But SIRA said poor return to work performance continued to be an issue of concern.

‘‘Icare’s targets for 2023 are lower than current return to work rates, and they are projecting a further decline of 2.5 per cent on 26-week return to work rates through 2023 and 2024 as the scheme transitions to new claims providers,’’ Dent said.

Icare said its focus was building injured workers’ capacity for employment using rehabilitation providers and associated vocational placement interventions. ‘‘This includes assistance with job seeking and vocational retraining. Work capacity decision-making is applied when the worker has a demonstrated capacity for work and has been provided the right support.’’
Lifeline: 13 11 14

24/11/2022

Australia’s Role in the COP 27 Farce in Egypt.

24 November 2022

It seems that there is a growing view that gas is part of decarbonising the world to save it from Climate Change. The term ‘Climate Change’ is itself a euphemism for ‘Global Warming’ as the latter is a bit more threatening, like we have ‘new prices’ rather than ‘price rises’.

Natural gas is largely methane, which is carbon and hydrogen and burns to carbon dioxide and water. But methane is itself also a greenhouse gas, far more potent than carbon dioxide in terms of its warming effects, and quite a lot of it escapes into the atmosphere unburnt, especially if it is released by fracking. One may remember Jeremy Buckingham’s videos of him lighting the gas coming out of the river in Grafton. Carbon Capture and Storage or CCS is a bad joke, with the fossil fuel industry getting grants to research this. My view it is merely a tactic to play for time, like the search for the ‘safe cigarette’. It allows them to keep doing what they are doing, as regulators hope for a technofix.

The fossil fuel industry was in Egypt and seems did quite well, getting agreements to cut down on coal, but not gas and oil. And Australia’s approval for more gas was not criticised here, presumably because Europe is in such a mess with no Russian gas that they had become dependent on.

The cost of extracting gas has not changed, but Australia’s gas companies can just charge the world’s prices and can pocket the extra margin, known in economics as ‘super normal profits’. It might be noted that silly Liz Truss in the UK was going to subsidise gas for the people, i.e. simply give the extra profits to the gas companies by creating a taxpayer debt; a Tory idea of ‘welfare’. In Australia we just let the money go from consumers to the companies with few royalties. Norway and Qatar benefit from their resources- we don’t.

It seems that the COP meeting in Egypt was overshadowed by the G20 and the ASEAN meetings, but it is also likely that Egypt was leaned on by its affluent neighbours, the Middle East fossil fuel producers.

Here is a summary- it is not encouraging. The much-praised Albanese government has not done enough!

COP27: Australia promotes fossil fuels as pathway to carbon neutrality

24/11/2022

Danny Lim Bashing a bad sign of the times

24 November 2022

Danny Lim is a regular at many protests. He is a very kind and gentle man, and his protests are quite individual and idiosyncratic with very humane values. He would never harm anyone, and the way he was thrown face first onto the tiled floor at the Queen Victoria Building by the Police is frankly a disgrace.

As the gap between rich and poor widens with neo-liberal policies and a welfare system which is starved of funds, the level of social frustration rises. Many times in Parliament I was asked to pass legislation which simply increased Police powers, mostly in response to an item in the media where some crime had occurred. There was never any question as to why the crime occurred, there was simply an increase in Police powers and usually the maximum fines or sentences. The Police Service was re-named the Police Force, presumably to reflect the same philosophy. No one ever asked if this would actually work.

I have formed the view that the defence industry increasingly uses the Australian War Memorial as a temple of militarism. A couple of years ago, Nick Deane of the Marrickville Peace Group asked me to help him hand out leaflets on Anzac Day that said, ‘Honour the Dead by Working for Peace’. So I dressed in suit, wore a discrete sign with the slogan on it and went to the edge of the public area in the Hyde Park ceremony and started handing out his leaflet. People took it, and most agreed that it was reasonable.

After a while a Police sergeant came and told me to move 150 metres away as I was ‘offending people’. I said that no one had been offended, (not that there is a law against offending people in any case) and I was not going to move, as I had a right to stand there. He said words to the effect of, ‘You will do what I tell you or you will be arrested and charged’. I told him that he was there to enforce existing laws, not make them up, and if he charged me he would merely be told by the Magistrate that he did not have a case. I agreed to move about 2 metres so he could save face. He was furious, and went off asking to find someone who was offended. He came back and we had a second altercation. I really thought that if I had not been in a suit and told him I was an ex-MP, I would have been thrown down and roughed up. It was a line ball as it was.

The Police are there to keep us safe, not remove people harmlessly expressing opinions, and certainly not to do so roughly. They must obey laws of reasonable behaviour the same as we should. Clearly pressure on them needs to be maintained. The presence of cameras on every phone will help in this- no longer will stories of people ‘falling over’ be believed.

Fortunately Danny has come out of hospital and seems OK, but the video below leaves little doubt that he was assaulted by Police.

www.smh.com.au/national/nsw/excessive-police-force-is-damaging-sydney-s-reputation-minister-told-after-danny-lim-arrest-20221123-p5c0no.html

23/11/2022

British American Tobacco launches new Campaign to legitimise Vaping.

23 November 2022

Almost all the vaping products are owned by tobacco companies, and the marketing is almost a re-run of their tobacco campaigns. i.e:

1. Assume that it is here to stay, and hence legitimate and unstoppable.
2. Suggest that ‘courtesy and consideration’ is all that is needed.
3. Fight regulation as much as possible.

Naturally they are keen to say that any attempt to restrict nicotine is doomed to failure as it is already totally available on the Black Market.

It might be noted that when there were different regulations in Canada from the US for tobacco labelling, cigarettes were smuggled through the Indian reservations, and all labelling that used to allow the source of the cigarettes to be identified was removed from the packaging, which showed what contempt the tobacco industry had for regulations that lessened their sales.

We might expect that similar things are happening in sales of vaping products and liquids. Naturally as they talk about how hopeless it is to regulate vaping products they want to hark back to the failure of alcohol prohibition in the 1930s, which led to Al Capone and his gangsters.

Older folk will remember that as the tobacco control movement grew stronger in the late 1970s we were attacked as ‘wowsers’ and ‘killjoys’, with the implication that we were stopping people having a good time, which was what smoking was all about. It is the same tactic again. We want to stop all the happy vapers.

The tobacco industry used the fact that some doctors think that vaping can help people QUIT to allow them to sell their product without having to prove it was safe. They only had to prove it was less dangerous than tobacco- a very very low bar.

Now vaping is used more as a gateway to smoking than a path from it, and often if there is nicotine in the vape it can be used alternately as a substitute. So presumably will be a move to push vaping in smoke-free areas. Then vaping will be the ideal product for the tobacco industry, being used everywhere, helping consumption, and keeping some people smoking at other times. Just like the good old days.

Health interests have to keep the government onside, but also demand some serious anti-vaping campaigns.

Vaping uses solvents, which dissolve fats. If this is the case, it is like upmarket petrol sniffing, as it will dissolves cell membranes, especially in the brain, which has the highest blood supply of any fatty tissue in the body. This is likely to lead to gradually progressive dementia. Naturally this may take years to manifest, and even longer to be identified and scientifically proven, given that a highly sceptical Industry that will criticise the research; in short a re-run of the tobacco wars.

If we look at the history of tobacco, it was used in relatively small quantities until the invention of the cigarette rolling machine by Duke in 1898. It was massively marketed during and after WW1 from 1914. It was shown to cause lung cancer in 1950. Advertising bans started in the mid 1970s, but full sponsorship bans and smoke-free indoor air did not come until 2000. The tobacco epidemic lasted a full century; so watch out for a vaping re-run with a dementia epidemic in older folk. Unlikely? No;. quite possible. So will the tobacco industry prove it is is safe. They can’t, don’t want to; now don’t have to, and have put out this BS new organisation.

www.theaustralian.com.au/the-oz/news/big-tobacco-company-behind-vaping-overhaul/news-story/1078baf2358e5ba3d96c6235aac49610

19/11/2022

Immigration – it is Time to Clean it up.

19 November 2022

One of the legacies of the Morrison Government is a complete mess in immigration.

I grew up in Port Kembla where a huge influx of ‘displaced persons’ (i.e. refugees) from post-war Europe came to Australia and worked in the Steelworks. Initially the kids at my primary school came from the migrant hostels that had been set up in the old army accommodation, but then the NSW Housing Commission built whole suburbs to cope with the load. These were initially rented, but eventually they bought their homes. The kids learned English, we got used to their funny names and unusual school lunches and they grew up as good Aussie kids.

It might be noted that there was an influx of Hungarians after the 1956 uprising against the Russians there and some of those became captains of Austr;ian industry. Australia took a lot of refugees from Vietnam, claimed it was a multicultural country and had benefited enormously from the influx of foreign talent. Paul Keating tried to fund an initiative to foster language teaching so that a large number of Australians would become bilingual, but this and the free ESL (English as a Second Language) classes were defunded by John Howard, who won an election by demonising refugees and promising to ‘turn back the boats’ The fact that there were numerically not very many boat people and that political refugees are generally the elite from when re they come was ignored and Australia was set on a path of not only being totally callous with refugees, but also wasting huge amounts of money on dodgy contractors and facilities. The delays were also a disgrace.

But meanwhile other immigration developed with migration agents charging exorbitant amounts, stories of people of dubious character buying visas, and even sex slaves. Some employers brought people in with a sponsored deal that they had to work for 2 years to then be eligible for a permanent visa, and in my own experience I saw a couple on five 12 hour night shifts a week to get this. Many students, allowed to work only 20 hours a week and unable to live on this were paid sub-award wages, obviously dragging Australian wages down in all the casual industries.

I have tried to help a number of good people who were injured and in danger of deportation to save insurers money, and found there are many dodgy practices and practitioners, as well as a very unresponsive system.

The current ‘labour shortage’ shows how dependent we all were on work visa and student casual labour, and the fear of industry-wide awards that are actually enforced says quite a lot about what was going on.

At last, after a lot of publicity about sex trafficking someone is cracking down on the Industry. Hopefully, this as well as adding a lot of public servants to process the applications in a more honest way will improve the situation.

Taskforce targets migration criminals

Nick McKenzie SMH 19 November 2022

The federal government has established a new multi-agency taskforce to target criminals exploiting Australia’s migration system after revelations of widespread visa rorting linked to sex trafficking, foreign worker mistreatment and drug crime.

Operation Inglenook is led by Australian Border Force and backed by other state and federal agencies, and will target the organised crime gangs and migration fixers exposed by Trafficked, a major investigative series by the Herald, The Age and 60 Minutes.

The taskforce is focusing on 20 migration agents with suspected links to the rorting, and one federal government-licensed agent has already been issued a notice that the Office of the Migration Agents Regulation Agency will ban him from providing migration advice.

Home Affairs Minister Clare O’Neil has promised major reform to the system, and said yesterday that the new taskforce was being staffed by investigators and regulatory officials aiming to reduce rampant exploitation of the migration system.

‘‘Its goal is to disrupt the networks exposed by the Trafficked series. The taskforce includes intelligence and compliance teams to assist with an investigation into the vulnerabilities of the migration system,’’ O’Neil said.

The minister said that after years of neglect by the former Coalition government, Labor was now acting. The Office of the Migration Agents Regulation Agency was working closely with the new taskforce.

The Trafficked series cast a light on visa rorting, sex trafficking and foreign worker exploitation in Australia. Among the reports was that of a human trafficking boss who entered Australia in 2014 and built a criminal underground sex empire despite having previously been jailed in Britain for similar offending.

That crime boss, Binjun Xie, is in hiding and being sought by authorities after being exposed in the series. Border security failures enabled Xie to allegedly set up a nationwide sex network that police said moved Asian women around like ‘‘cattle’’.

Trafficked also revealed how state and federal agencies have spent years issuing confidential warnings of migration rorting involving syndicates gaming the visa system to bring criminals or exploited workers into Australia. This is facilitated by networks of corrupt federal government licensed migration agents, education colleges, fixers and people who rort the English language test.

The investigation also focused on migration agent Jack Ta, who had boasted of ‘‘cosy’’ meals with Coalition ministers and who donated more than $25,000 to the campaign fund of former Liberal assistant home affairs minister Jason Wood. Ta is suspected of repeatedly gaming the visa system to help more than a dozen drug offenders remain in Australia.

Wood was the chair of parliament’s migration committee when the donations took place and he hosted Ta on at least two occasions to dine with now opposition leader Peter Dutton when he was home affairs minister.

This masthead has also confirmed that Ta attended the launch for O’Neil’s election campaign when she was a shadow minister and bought items at an auction worth $5200. The funds were donated to a charity after Ta’s conduct was exposed by this masthead.

Authorities have linked Ta’s migration agency to dozens of unmeritorious asylum seeker claims, including at least 15 made by convicted Vietnamese drug offenders.

Earlier this month, the federal government cleared the way for an overhaul of the visa rules by naming former Treasury secretary Martin Parkinson to review the system.

The new taskforce to investigate the migration scams will complement his inquiry.

Parkinson said it was ‘‘indisputable’’ the migration system was not working.

19/11/2022

The Myth of Liberal Competence- 2

19 November 2022

One of the concepts I tried to advocate while I was in NSW Parliament was ‘evidence-based’ legislation. There were many cases when an anecdote was told, and the conclusion from it was ‘therefore we need this legislation.’ It was particularly the case where there had been some crime that was in the media and the penalties were being racked up. Despite the fact that it had generally been shown that higher penalties did not change the incidence of crime, the same response always seemed to occur.

During one of these endless debates, I suggested that what was needed overall was evidence-based legislation. Hopefully someone would collect facts as well as they could be ascertained and that would result in appropriate legislation. One might have even hoped that this was the norm. My speech resulted in hilarious laughter from the chamber, which was naturally not recorded by Hansard. But it said quite a lot about how Parliament thought and acted.

Another unsuccessful request I made was that the Social Issues Committee of which I was a member, and Committees generally should either do ongoing research on issues or commission a neutral outside group, such as a university department to do longitudinal studies, so that the effect of social policies could be quantified and decisions based on real world experience. This seemed particularly necessary on vexed questions like whether it was better to take children from dysfunctional families to foster homes or to try to support the children in situ. It was pointed out that this would change the nature and need for funding in the Parliamentary committee system, which was obviously true, but not a reason not to try to get better information on which to base legislation.

Evidence-based legislation was famously attempted by Angela Merkel in Germany, who was a scientist by profession and also by one of the New York mayors, with excellent results so I was encouraged to find that there are now efforts to look at Australian legislation in terms of its evidence base, though an initiative ww.evidencebasedpolicy.org.au, which uses the same survey method by both the Right-wing IPA (Institute of Public Affairs) and the progressive Per Capita Australia to assess legislation. The criteria were developed by Prof Kenneth Wiltshire at the Uni of Qld and then applied by both groups to 80 pieces of legislation with surprisingly similar results from the two groups.

Morrison’s government did slightly worse than the NSW, Victorian and Qld State governments. His efforts worst were; to reduce the number of people necessary to register a political party; to allow new political parties to have names similar to existing ones; and to reduce fuel excise just before the election.

Perrottet efforts to put extra changes on electric vehicles and to massively crack down on protesters also ranked a mention.

If you look at the website above, you will note that Labor fared only a little better.

The SMH gave some publicity to this, which is how I became aware of it:

Morrison, Perrottet made bad laws: report

Shane Wright, Senior economic correspondent SMH 19 November 2022

The Morrison, Perrottet and Andrews governments all delivered laws over the past year that followed ‘‘unacceptable’’ practices and helped undermine confidence in how legislation is put together, an independent analysis has found.

A report produced for the Evidence-Based Policy Research Project found laws that changed everything from the number of people a party needed to become registered to a crackdown on protesters failed to be properly debated, opened to scrutiny and considered against other options.

Every year, the research project uses a left- and right-leaning think tank to assess the creation, debate and passage of laws passed over the previous 12 months at the federal level and across NSW, Queensland and Victoria.

Experts from the left’s Per Capita Australia and the right’s Blueprint Institute bench-marked 20 pieces of legislation against 10 separate criteria.

They included whether there was a need for the law, its objectives, alternative options, how it would work, if a government considered all the pros and cons, parliamentary debate and the consultation process.

The worst-ranked piece of legislation by both think tanks was the Morrison government’s change to federal electoral law that increased the number of members a party must have to be registered to 1500, from 500. It also stops a party that has a similar name to an existing party from being registered.

Of the 10 criteria, Blueprint and Per Capita found the legislation passed just two – that it had set objectives and that the law was properly communicated.

Five other laws were ranked as unacceptable. They included NSW’s road user charges on electric vehicles and its new laws aimed at protesters who disrupt traffic.

Two federal laws, covering the sixmonth reduction in fuel excise and changes to foreign intelligence laws, were also ranked among the poorest of the past 12 months.

The chair of the project’s governing committee, former NSW Treasury secretary Percy Allan, said faulty decision-making processes at all levels of government contributed towards corruption, misallocation of resources and waste of public money.

‘‘Having auditors-general, integrity bodies and select committees of inquiry rake over failed policies and processes does not fix the underlying problem, which is that no government in Australia consistently addresses the above questions when making policy,’’ he said.

Western Sydney University chancellor and former secretary of the Department of Prime Minister and Cabinet, Peter Shergold, said policy and lawmaking had to improve.

‘‘Having just completed a review of Australian governments’ response to COVID-19, I am utterly convinced that we cannot make good policy decisions in a crisis if we are not better practised at developing evidence-based legislation during more ‘normal’ times,’’ he said.

‘‘Assessing the diversity of short- and longer-term costs and benefits, based on… stakeholder consultation, is vital.’’

19/11/2022

BUGA UP – the issues keep resurfacing

19 November 2022

BUGA UP originated in 1979, when its 3 founders were prevented from a regular evening out to re-face tobacco billboards by pouring rain. As it they sat and waited, they thought about how to publicise their work so that it did not appear as random anti-tobacco graffiti. They wanted a word that would be irreverent and would embody the concept of hitting back against the unhealthy promotions. After some discussion, the word BUGA UP was developed, an acronym for Billboard Utilising Graffitists Against Unhealthy Promotions. From that night they signed all the re-faced billboards with BUGA UP.

The major problem at that time was tobacco promotion, which accounted for over half outdoor advertising, with alcohol second. The concept was self-regulatory in that anyone taking up a spray can had to make their own decision about what they wanted to say, i.e. what they were willing to be arrested for.

A relatively large number of graffitists, especially from the medical fraternity, were inspired by what appeared to be a large campaign and were willing to be arrested for spraying on tobacco billboards. Other activists were concerned about alcohol promotion and some were concerned about sexism in advertising. A relatively small percentage were willing to be arrested for junk food or drink ads. (There were no ads for gambling at that time).

BUGA UP, however, looked at the whole issue of the regulation of advertising, asking that it not be one-way communication with no input from consumers or regulators as to the content or consequences of the promotions. The advertisers’ position was that it was their money, they could say what they liked, as this was ‘freedom of commercial speech’. Note the extra word in the cliche ‘freedom of speech’.

The advertisers set up a farcical ‘Advertising Standards Council’ which had very loose ‘codes of practice’ and an industry dominated judicial system, which took so long to work that the ad campaign was invariably over even if they banned an ad, which very rarely happened as they had the numbers in the kangaroo courts. One hapless paediatrician was recruited onto one of these committees, had his name used to champion the quality of its membership, and of course was outvoted in every deliberation. He eventually acknowledged sadly that he had been ‘used’ and he resigned.

But BUGA UP was active, producing a publication, ‘Billboard’, which was sent to all the major players in the advertising industry to emphasise to them that their regulatory systems were recognised as farcical. BUGA UP invented the ‘Advertising Double Standards Council’ to satirise the ‘Advertising Standards Council’. Its slogan was ‘If advertising standards are good, double standards are twice as good’.

One of BUGA UP’s members, Peter Vogel, wrote over 400 complaints about many ads. He was labelled a ‘serial complainer’ and they wanted not to respond to his complaints. He insisted that by their own charter they had to. They rejected all 400+!

Eventually there had been so much publicity about advertising regulation that the advertising industry wanted the Trade Practices Commission to re-legitimise its self-regulatory system, presumably as they thought government regulation was possible in the future. The Fairfax newspapers fronted this action, and it was opposed by ACA, The Australian Consumers’ Association. The advertisers said that their codes and practices were working well. At this stage Peter Vogel of BUGA UP came out of the woodwork, with his huge file of denied complaints. He had systematically made complaints using every item of the advertisers codes of practice and had a farcical response to every item, which the Commission could judge for itself.

Two academics, Shenagh Barnes and Michael Blakeney wrote a book called ‘Advertising Regulation’ (Law Book Co 1982) which concluded that the self regulatory system manifestly lacked credibility’. But despite the moral victory, the consequences of the trial were not good. The Trade Practices Tribunal concluded that it was not able to set up a regulatory structure, but could only either approve or reject what was put in front of it, so in the absence of any alternative it approved the self-regulatory system as it might have a bit of benefit over nothing at all. ACA, the Consumers’ organisation, was almost sent bankrupt by the legal fees involved, and overall the Industry had got what it wanted. A few years later when the issue had faded from the public eye, the Advertising Standards Council faded too.

The original BUGA UP guide, ‘Ad Expo- a self-defence course for children’ from 1983 is still available online, but of course its ads are now dated. (ww.bugaup.org/publications/Ad_Expo.pdf)

But now, as gambling wreaks havoc with families, and childhood obesity skyrockets, the issue of irresponsible advertising is back in the spotlight. Let us hope that there is more success this time, but a lot of work will be needed even to get up the momentum that BUGA UP had in 1983.

Here is an article on sugar and obesity:

Sugar shovellers are making us sick, fat and poor (and check out what they pay in tax!)

19/11/2022

The Myth of Liberal Competence-1

19 November 2022

One of the enduring myths of politics is that conservatives are better money managers. This is the case in the US, where the Republicans, who enthusiastically dismantle government programs that help poor people and the UK Conservatries who do the same. And it is the case here with the Liberals.

Perhaps the logic is that since they are rich, they must be better with money. But I wonder at the influence of Christianity. The key message is that you must suffer to be redeemed. Suffering is worthy and will later be rewarded. This seems to play into notions that the country will benefit if we all suffer now, ‘we’ in this case being those more dependent on welfare, or those at the bottom of the heap.

The other overarching fact in a market economy the more wealthy people can set the prices, which effectively means they set their incomes. At the bottom of the social pyramid, those at the bottom compete for the jobs and wages set by others. In short, the rich get richer and the poor get poorer. The game ‘Monopoly’ was designed to illustrate this. People play Monopoly, and when they win or lose, they stop the game and go on with life. But what is the game were real and never ended? The losers would get poorer and poorer until they had nothing else to give. That arguably is what a market economy will do without some intervention from an outside force, like a government, to intervene in the cause of those going backward.

Arguably the world’s leading economist is Thomas Piketty. He is a Frenchman who, as he rose, was offered a post in Harvard. He did not take it, opining that economics in the US was theoretical and not based on hard data, as a science should be. Records of national income and death duties going back for 400 years in 4 countries had been put together and he analysed it. His book, ‘Capitalism in the 21^st Century’ is a towering work. It is long, but it is very well-structured with concise conclusions at the beginning and the proof in the later chapters for those who want to read more. He observed that the wages of the population go up at the inflation rate, and the income of the rich who loaned money go up at the interest rate, but the interest rate was always higher than the inflation rate, otherwise there would be no profit in lending. So the income of the rich would always go up faster than the rest of the population, so social inequality would increase in the absence of other interference.

It has always been known that money goes round, and to stimulate the economy people have to spend more. But Piketty points out that poor people spend a greater percentage of their money than rich people. Very poor people spend all the money they have, rich people save about a third. So if you want to stimulate an economy, you should give money to poor people. This is of course not what conservative governments do. They give money to infrastructure, which these days means big private contractors or have industry assistance packages. But these initiatives are giving money to the rich, on the assumption that it will generate more jobs in the long term than the extra consumption would have generated.

(You might ask why Piketty has not got a Nobel Prize for being the first economist to use real data over centuries and come to such a profound conclusion. If you did ask that you might wonder if the Nobel prize economics committee are all neo-liberal economists and you might be right).

The point is without government intervention, the rich will get richer and the poor will get poorer. The best way to minimise this is to have as much shared wealth as possible in the form of park and public facilities, such as transport, health, education and essential services that blunt the significance of income disparities, as a base-line is set without it having the stigma of charity.

But conservative governments, like the Nobel committee want to ignore Piketty and the obvious facts as they do not suit their ideological agenda. A cynic would say that the ideological agenda from right wing ‘think tanks is merely an endless list of convenient reasons to keep the money flowing to the top end of town, to lessen government ‘interference’ which might act for fairness, and to commodify everything such as housing, transport and education so they can become profitable, increase inequality and profit those at the top. How can this agenda ever be considered the foundation of good financial management?

But as Treasurer, Morrison was not even clever in his management of his own revenue. Here is a tale of how his GST deal with Western Australia was out by a factor of almost 10 times over 3 years. Yet the legacy of this shambles is contracts and deal that other have to grapple with.

One of the modest contributions that I am seeking to make to political discourse is to sheet home the blame for failures to the people responsible for them. Here is a start, from the SMH:

Cost of Morrison’s WA GST deal blows out by $20 billion as debt hits record high

By Shane Wright SMH November 14, 2022 — 5.00am

A deal put in place to placate Western Australia when its share of GST revenue was tumbling is on track to cost the nation’s taxpayers 10 times more than originally forecast, helping drive up federal government debt and interest payments to record levels.

Pulled together by then-treasurer Scott Morrison in 2018 before being put through parliament by his successor, Josh Frydenberg, the deal that was originally expected to cost $2.3 billion is now on track to cost more than $24 billion.

WA, which delivered four seats to Labor at the May election on the back of a 10.6 per cent swing, is vowing to fight to keep the arrangement, due to expire in 2026-27.

Morrison struck the deal at a time WA’s share of the tax pool had fallen to an all-time low of 30 cents for every dollar of GST raised within the state. Its iron ore royalties were effectively being redistributed among the other states and territories based on a Commonwealth Grants Commission formula that takes into account each state’s revenue sources and expenses.

Under Morrison’s deal, from 2022-23 WA must receive a minimum of 70 cents in the dollar before increasing to 75 cents in 2024-25. When the policy was put in place, it was expected iron ore prices would fall and WA’s share of the GST pool would therefore rise. Instead, prices have soared.

The Morrison government ensured other states and territories wouldn’t be worse off, which requires the top-up funding for the deal to come from outside the $82.5 billion GST pool.

It was originally forecast to cost federal taxpayers $2.3 billion over three years, including just $293 million in 2021-22, but the surge in iron ore prices has meant more top-ups and for longer.

The October budget revealed that last year, the deal cost $2.1 billion and is forecast to jump to $4.2 billion this financial year. By 2025-26, the cost of the entire deal is on track to reach $22.5 billion, with another $2-3 billion likely the year after that.

Throughout the entire period, the budget is expected to be in deficit, forcing the extra cash to be borrowed. In percentage terms, the blowout in cost is larger than the NDIS, aged care, health or defence.

Independent economist Chris Richardson said the deal had been ill-conceived from the beginning with the cost to be borne by future taxpayers.

He said all significant spending programs needed to be properly assessed, including the GST deal.

“Yes, the politics of it are difficult. But we have a whole host of other issues, like the NDIS, and the economics of them have to be dealt with,” he said.

Any change to the GST deal would create enormous political problems in WA which is likely to gain more political power with an additional seat in a looming federal electorate redistribution.

WA Premier and Treasurer Mark McGowan, who reported a $5.6 billion budget surplus for the 2021-22 financial year, told this masthead he expected the GST deal to remain.

“I have made it very clear that West Australians will not accept any changes to the GST distribution,” he said.

“Those on the east coast who are demanding WA lose out still do not realise that under the reforms, WA will receive 70 per cent of its population share of the GST next financial year. In complete contrast, no other state has ever received a share of the GST lower than 83 per cent.

“WA will continue to subsidise all the other states into the future under this arrangement. No state has lost a dollar under these reforms.”

The extra borrowing for the GST deal has contributed to the lift in gross debt, which on Friday reached a record $909.4 billion.

Ahead of the COVID-pandemic, gross debt was expected to reach $576 billion this financial year. Instead, it is now forecast to reach $927 billion before reaching $1 trillion in 2023-24.

Treasurer Jim Chalmers said the cost of servicing the debt was getting more expensive and was now the budget’s fastest-growing expense.

“We’ve made good progress in a very short space of time. We’ve found $22 billion in savings and kept real spending growth flat across the forward estimates,” he said.

“[But] it will take more than one budget and more than one term of government to make up for a decade of missed opportunities and messed-up priorities.”

16/11/2022

BUGA UP Nostalgia

16 November 2022

BUGA UP (Billboard Utilising Graffitists Against Unhealthy Promotions) was most active fro m 1979-1985, and had a big effect on tobacco and smoking. It was also a high point in the demand for advertising to be responsible for the consequences of its use of its products.

In the end, the advertisers accepted a ban on tobacco to keep the threat of stronger regulation at bay. They cut back on sexism a bit and the movement to regulate them died down. So alcohol, gambling annd junk food ads have survived.

Here is a link to some of the TV programs from that time and a little after.

www.youtube.com/user/BUGAUPTube

15/11/2022

Submission to Inquiry into Online Gambling

11 November 2022

Dr Arthur Chesterfield-Evans

The Internet Problem

The issue of online Gambling is similar to many problems in that online gambling involves an area of activity that is largely beyond the direct control of the Australian Parliaments, or indeed any single Parliament. The internet was designed to be anarchic, and so it is.

Programs to deal with gambling regulation are thus ineffective, but the limited terms of reference of this inquiry suggests that governments are not thinking in terms of what they can do at a systemic and global level and are turning instead to a focus on the individual.

Need for an Industry focus rather than an Individual Focus

It must be noted that where creating public health problems benefits an Industry, the response must be against that Industry. Concentrating on individuals while the Industry markets to the world is a very inefficient strategy. To use a historical example, the Tobacco Industry marketed with ubiquitous ads, sponsorships, product placements and many other techniques, yet wanted medical professionals and school education to be the only techniques used against them, framing the issue as personal choice (and responsibility) and ‘smokers v. non-smokers’ requiring courtesy (and no criticism and restrictions).

This is the situation that the Gambling Industry is in now. They demand to be able to market to the world, but want all harm minimisation programs directed at individuals. They know that this is a winning strategy for them.

What the Federal Government Can Do

While it is true that the Australian Federal government has no effective jurisdiction over the internet, and does not licence or control the Hotels, Clubs and Casinos with their poker machines, it has control over Australian media advertising laws and also allocates grants to States. The Federal government could ban all Gambling advertising on electronic media in Australia, and lessen grants to States in proportion to their revenue from Gambling. This would stop the States getting any benefit from gambling revenue, which they rely on quite highly. Western Australia, which is missing out on Gambling revenue would certainly support this.

The ban on tobacco advertising and sponsorship has set a precedent for action on public health issues, and there was censorship of certain opinions that were antithetical to a national COVID strategy, so the idea of a ban on Gambling advertising is not new or radical. VicHealth also replaced tobacco advertising with ads for healthy lifestyles and anti-Gambling advertising could replace ads for Gambling. The protest group, BUGA UP (Billboard Utilising Graffitists Against Unhealthy Promotions) in the 1980s used satire of tobacco advertising to sharpen the focus on the Tobacco Industry’s absurd imagery and callous disregard for the lives of their customers. They won hearts for their Robin Hood approach to the entrenched power of the Tobacco Industry and set the world standard for action against tobacco, because compared to their actions, everything else became ‘moderate’. But less recognised than their billboard campaign was the re-framing of the debate from ‘smokers v non-smokers’ and ‘personal choice’, to a ‘Tobacco Industry campaign to make a profit even though it kills people’. This reframing in the public mind allowed governments to stand up to the Tobacco Industry and forced political parties to eschew their donations (at least publicly)..

Gambling Industry Strategy

The Gambling Industry’s ads are very clever, appearing to take the loser’s side to identify with (usually) him and dangle the prospect of a win, though of course this is statistically impossible in the medium term. They are perverting the idea of ‘mateship’ to a group Gambling session with a cheery comparison of who they are backing as they watch sport. This would be very vulnerable to a satiric response, based on a commiseration as to which mug lost the most and a final comment that ‘gamblers are losers’.

Laissez-faire v. Health

The Federal government is responsible for the health of Australians and with an increasing percentage of health problems being related to lifestyle choices, the government cannot simply ‘leave health to the market’. ‘The market’ will sell anything that makes money irrespective of whether it has good health outcomes or not, so leaving the national wellbeing to ‘the market’ is a highly flawed strategy as the government in the end picks up the tab for all problems. The Federal government should unashamedly promote sales and practices that are good for health and discourage things that are not.

Encouraging good personal decisions

Any reasonable management textbook will say that the best way to manage things is to have good decisions made at the lowest possible level within the organisation. Yet gambling advertising uses distractions and dreams of riches that are statistically extremely unlikely to encourage people to gamble, and thus not use their money wisely. If the ads said ‘Do not contribute to superannuation’, ‘Do not save’, Do not worry if you do not have enough money to feed your kids’, there would be a huge outcry. Yet this is the outcome with a large percentage of gambling money received being from people who cannot really afford it. The social problems created take an immense amount of effort from government and NGO charitable organisations to try to rectify them. Often they cannot. This problem is entirely created because of bad decisions on gambling made by people who the Gambling Industry has conned. It is exactly like people taking up smoking. It was portrayed as a bit of harmless pleasure, but when people were hooked, it did them immense harm. Gambling is the same.

Need for Gambling Research

One the other problems of Gambling is that the research is funded by the industry, so its scope and nature are controlled. The amount of harm that it does is poorly quantified, so that there is little evidence for those opposing Gambling to use in political debate. The lack of evidence and the lack of debate suits the Gambling Industry fine- they are more than happy to continue and extend the status quo. Given that the Federal government is a major player in cleaning up the social problems created by the Gambling, it should insist that there be well funded research on the social consequences of Gambling, and the nature of this research should not be determined by the Gambling Industry. The Gambling Industry in Australia is extremely large by world standards, perhaps the largest in the world apart from little enclaves like Monaco or Macau where the money is retained by the State and the social problems are either ignored or assumed to be manifest elsewhere. The social indices of distress are very high in Las Vegas. It might be said that the Gambling Industry in Australia is like the gun lobby in the US; it is almost unchallengeable. This must change, and the Federal government must initiate the change.

Off-line Gambling

It is interesting that the Clubs lobby is under challenge at a state level. The origin of this is uncertain. There has always been a lobby against Gambling, and this may have been helped by the rapid rise in the inflation rate which is straining the family budget, particularly of disadvantaged people, who are the ones most affected by Gambling losses. It is also no doubt helped by the revelations that the Casinos have happily laundered money for organised crime, by-passing their regulatory systems, and being perceived by organised crime as an easier target than foreign jurisdictions. The public also notice that the Casino boards were well stacked with ex-politicians, who were presumed to be there to smooth the political pathway of the Casinos in their dealing with regulation or (even) enforcement. It might be noted that despite the huge amounts of money being laundered and the findings that the Casinos were not fit to have licences, their share prices have only suffered modestly, showing that everyone knows that eventually their licence will be restored and it will be ‘business as usual’. The public is also well aware that the charade, ‘’I had no idea what was happening’ from the politically connected people at the top, merely leads to a resignation or two, but there is no penalty on the individuals. An aboriginal youth can go to gaol for petty theft, but laundering billions for organised crime merely leads a Casino director to a sojourn in the yacht club. While the major political parties have been very reluctant to upset the Hotel and Club industry, as evidenced by the 20 year delay in introducing smoke-free indoor air legislation, the rise of the Teal candidates threatening once safe seats, has pressured the major political parties to take a more ethical stance, and also blunted the financial advantage that support from the pubs and clubs lobby gives to their campaigns.

Online v. Off-line Gambling

But the final possibility for the pressure on the Clubs and Hotels may have come from the Online Gambling lobby. If it is assumed that people who want to gamble will use what is available, there is a real possibility that the lack of poker machines availability in pubs and clubs may lead to an increase in online Gambling. Supporters of the pubs and clubs are quick to point out that the clubs are non-profit and spend their monies enlarging their premises and providing facilities in Australia, as well as paying at least some tax to State governments. If there were a change towards online Gambling this money would go overseas. This overlooks the social context of gambling. Playing a poker machine is quite different from going online, so there is unlikely to be a direct transfer, even if the online experience is made more similar.

Need for Federal Government Action on all Gambling

The lesson for the Federal government, however, is that Gambling must be discouraged at both the pub and club level, and online at the same time. Both have similarly detrimental financial consequences for the players and punters, though the industries are distinct. From the public’s point of view, it is worrying that the terms of reference of this inquiry neglect that issue of Gambling in pubs, clubs and the TAB, as it suggests that these influences have restricted the terms of reference. The regulation of the internet is also a wider problem, which usually comes into focus with the issues of inflammatory hate speech, medical disinformation, defamation or an aspect of pornography. Gambling for money should be in a similar category to these and discussed in a similar context.

Recommendations:

The Federal Government should recognise that the Gambling Industry and its power is the reason that Australia has a worse Gambling problem than almost any other developed country and the the Gambling Industry has a hold on Australian politics as strong as the Gun lobby in the USA, and with a detrimental effect that could be of similar magnitude.
The Federal government should take an unequivocal stand that Gambling is harmful in that it encourages poor financial decision-making which puts a strain on the whole welfare system, Federal, State and NGO.
The Federal government should recognise that all forms of Gambling need to be discouraged, pubs, clubs, TAB, on-course and online and this needs to be an unequivocal campaign, similar to Quit or for the necessity for vaccination.
The campaign against Gambling needs to be in schools and have both a mathematical component as part of statistics, and a more practical part looking at online Gambling, and the social institutions which encourage Gambling.
The campaign against Gambling must involve electronic media advertising bans on TV and all advertising and sponsorship. It must involve active ads against Gambling as well as merely bans on pro-Gambling ads. It should use satire and be prolonged.
The control of online Gambling should be seen in the context of minimising the harm of the ubiquitous internet, and research on how to lessen Gambling should be pursued with endeavours to lessen other social harms such as child sexual exploitation, bullying, vaccine disinformation, tobacco and vaping advertising and disinformation, hate speech, video games that promote violence and defamation.
The Federal government should fund Gambling research so that the social consequences can be quantified and rational decisions made about the cost-benefit to society. Gambling research should not be neglected, limited, financed and controlled by the Gambling Industry as is currently the case.
There must be support for people who have a gambling problem. Such services need to be publicised, and destigmatised, as happened for those with mental illness. However, individual services must not be a substitute for a more systemic industry-focussed approach.
There needs to be a national register of addicted gamblers to allow better exclusion from gambling facilities. If this were comprehensive, it could be used to prevent addicts losing money online with a caveat emptor for those who took the bets from registered addicts. The credit card companies could be recruited not to allow Gambling to such addicts and not to honour Gambling debts incurred by registered addicts.
The Federal government should consider family support for addicted gamblers in the same way that child support is available for at risk families.

About the Author

Dr Arthur Chesterfield-Evans is medical doctor, who trained in surgery and became a tobacco-control advocate, then an Australian Democrat MLC in the NSW Upper House. He is currently working as a GP.