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Category: Privatisation

17/02/2023

The Triple Lunacy of Westconnex

17 February 2023

Westconnex, the underground freeway network will open later this year. Few realised the extent of it and for a period, trafffic will flow more smoothly.

But it was, is and will be a triple lunacy.

Nowhere else in the world are governments building freeway networks, let alone tunnelling them undergroup at vast cost. Cities like London have congestion taxes, some European cities are even closing their major roads, and it a subject of significant discussion (ww:://h2020-flow.eu/news/news-detail/when-roads-are-closed-where-does-the-traffic-go-it-evaporates-say-studies/). The world is trying to have more public transport to lessen the need for private cars, their cost, their parking and their greenhouse gases- except NSW!
The underground freeways will be privatised, so represent a huge subsidy from the taxpayer, as the private monopolies have a track record of huge tolls and guaranteed revenue. The tolls are already subsidised to lessen commuter pain, which amounts to continuing payments to the toll operators. Chris Minns’ Labor election platform is to subsidise motorists who spend more than $60 a week on tolls. Who are these and how many of them are there? Logistics companies? Couriers? Or tens of thousands of commuters? Naturally there will only be a few toll operators.
The money spent on road tunnels was not spent on a decent Metro system, that would have made most trips unnecessary and taken the cars off the roads. Of course a train tunnel is smaller than a road tunnel, much cheaper to build per Km, carries far more people and does not require ventilation (or very little).

One might ask why all this happened. My theory is that the RTA engineers were far more politically savvy than the State Rail Authority. The RTA were dealing with politicians and building motorways all over the state, wherever they could get the government to pay for them. The SRA confined its thinking to the existing rail network, and thought in terms of better train technology and industrial relations problems, rather than building their network and having a big part in urban planning. And of course the lobbying was probably helped by big bankers and big construction companies and by ex-politicans at Infrastructure NSW, which was set up in 2011 by Barry O’Farrell with ex-Premier and ex British-American tobacco executive, Nick Greiner in charge- a great privatiser.

WestConnex has beavered away at vast but unperceived cost and only attracted attention for its ventilation shafts in suburbia, or the chaos on existing roads as its portals were constructed. Now, for the next few years the affluent and the through traffic will have an easier time of it, and we can continue to lobby for the Metro system.

Web of steel, concrete and cable takes shape below

WestConnex is on track to open late this year, writes Matt O’Sullivan. (SMH 17 February 2023)

The scale and complexity of the final stage of the $17 billion WestConnex motorway project, buried up to 60 metres beneath inner Sydney, becomes clear the deeper workers venture into a twisting maze of road tunnels, ventilation passages and giant caverns for jet fans and substations.

Above ground, inner-city residents and motorists get a sense of the scale – and disruption whenever they pass a massive construction depot for the project on a site that was once the Rozelle rail yards, next to the City West Link roadway. However, the surface work represents only a fraction of the motorway junction below, which features three layers of tunnels.

All up, Australia’s most complex motorway project comprises 24 kilometres of tunnels beneath Rozelle and Lilyfield, about seven kilometres of which motorists will never see because it will be used mostly for ventilation. Once opened late this year, the $3.9 billion interchange will connect the recently opened M4-M8 Link between St Peters and Haberfield, the City West Link, the Anzac Bridge, Iron Cove and, by 2027, the planned Western Harbour Tunnel.

Almost four years after construction started, Rozelle interchange project director Steven Keyser said the focus was now on fitting out the finished tunnels and connecting ‘‘everything together, so it all talks to each other’’ as the targeted completion date looms. ‘‘We have the body built, but we need the brains,’’ he said of the mechanical and electrical systems.

Keyser said other road tunnel projects built in Sydney in the past decade had taught his team that fitting them out with mechanical and electrical equipment often took longer than anticipated. ‘‘We’ve got 1.7 million metres of cabling to run through all those tunnels. It’s a real spider network of cabling,’’ he said. ‘‘The back end takes a lot longer, and we’re scheduling far more intensely to get that right. And so we’re in a good position to open at the end of the year.’’

Keyser said that, while facing disruption from the 2019-20 Black Summer bushfires, the pandemic and wet weather, the biggest logistical challenge for the project had been ensuring equipment and componentry arrived in the correct sequence. ‘‘We had 23 road-headers [excavating] and 500 blue-collar workers starting and stopping each day, getting in and out of the tunnels. This is one of the biggest logistical exercises and that’s all hidden,’’ he said.

Like the rest of WestConnex, the Rozelle interchange has been contentious due to the disruption caused to inner-city residents, and the eyesore it has created near Sydney Harbour during the years of construction.

Transport for NSW’s deputy secretary of infrastructure and place, Camilla Drover, said the project would have been far more controversial if early plans for the interchange had been pursued. ‘‘The original scheme for this was all above ground. Can you imagine? It would have been viaduct and overpasses. But the fact that it is now all underground, and we have a park instead, that is the evolution people forget about,’’ she said.

The 10-hectare park, which includes two sporting fields, on the site of the old rail yards, will open late this year when the interchange is completed.

And Keyser said the public would see the construction site change quickly over the coming months as the park began to emerge. ‘‘We’re getting to the stage where you can see what the finished product will look like,’’ he said.

Underscoring the complexity of the underground junction, the state’s transport agency took control of the project in 2017 from a corporation set up to oversee WestConnex after only one bid from contractors to build it was received in the initial tender process. The interchange was also separated from construction of the M4-M8 Link, which forms the other part of the third and final stage of the 33-kilometre motorway project. The upshot is that the risk of delivering the interchange ultimately rests with the government.

While the tunnels for the interchange average 35 to 40 metres beneath the surface, a sump where water is collected before being pumped out is about 60 metres deep. Twin tunnels for the $27 billion Sydney Metro West rail line between the CBD and Parramatta, which will include a train station next to White Bay power station at the so-called Bays West, will be dug even deeper beneath a part of the interchange over the coming years.

For tunnellers, ground conditions have presented a constant challenge during construction. ‘‘It’s always challenging with ground conditions, no matter where you are in the world. Each time we’re digging the tunnels we’re checking the reactions of what’s happening,’’ Keyser said. ‘‘We’re always a step ahead, probing things, making sure that things are only moving to the model. We have probably 5000 instruments around measuring.’’

While sandstone is easier to excavate, softer soil conditions required so-called rock bolts to be installed closer together in the tunnel walls to provide extra support. The closest the tunnels get to each other is about 10 metres. ‘‘You’re basically doing what the Romans did – you’re creating an arch [in the tunnels],’’ Keyser said of the tunnelling techniques.

About a quarter of the $3.9 billion cost of the interchange, being built by contractors CPB and John Holland, has been spent on a labyrinth of ventilation tunnels and related facilities. Three exhaust stacks about 35 metres high, which are connected to the interchange below, have been built on the site of the old rail yards. Large caverns – some about 23 metres high – also had to be dug deep underground for electricity substations and to house giant fans for the ventilation system.

Part of the reason for the mammoth size of the ventilation facilities is the need to design the interchange to cope with a catastrophic event. ‘‘You’re always catering for what is the worst case, which is if something catches fire in the tunnel,’’ Keyser said. ‘‘The standards now are quite high and the design caters for that emergency situation. In the roof, you have a fire deluge system, which is going through its testing.’’

Greens MP for Balmain Jamie Parker, who has been highly critical of WestConnex, said the interchange’s construction had caused major disruption to nearby residents over the past four years. ‘‘Everyone is relieved that it will be over. But the local community feels like they have had such widespread impacts on their homes, and now they have to deal with the longer-term consequences of the three exhaust stacks which should be filtered,’’ he said. ‘‘The impact is really significant, and it is ongoing.’’

While acknowledging the disruption to locals from construction, NSW Metropolitan Roads Minister Natalie Ward said the interchange, along with the rest of WestConnex, would result in significant travel-time savings for motorists once fully completed. ‘‘There are always challenges in construction – it’s messy; it’s disruptive,’’ she said.

‘‘The upside is it gives local roads back to local communities. This area, you might remember, was just disused rail yards; it was overgrown … [and] you couldn’t enter. We are transforming this to see community benefits.’’

03/12/2022

Children in Care- a Brief History

3 December 2022

One summer evening when I was still a medical student, I was strolling with friends through a festival with stalls and lights in Hyde Park. A young woman approached me and said “I’m a ‘Hookah for Christ, will you come with me?”, and handed me a leaflet. She was a few years younger than I and one of the most stunningly beautiful women I have ever seen. I paused, somewhat shocked, and wondered how much Christ and how much hookah was in this Goddess incarnate and whether I should follow her path to enlightenment. My girlfriend reappeared at this point and was very definitely of the opinion that I should not.

Some years later, in 1992, I had further cause to rue this ignorance as DoCS (Department of Community Services) were involved in a court case with a sect called the ‘Children of God’, who, it was alleged, had used young girls sexually to recruit members for their cult. The sect maintained that the term ‘Hookahs for Christ’ was merely a rhetorical device. The sect had expensive lawyers and won the case , though there was considerable public doubt about the freedom of cult members. DoCs was highly criticised over the case and the Premier, Nick Greiner, cut huge number from its middle management.

Neo-liberalism was new at that time, and his slogan was ‘Putting people first by managing Better’, which was in itself reflected an attitude of the time that managers knew better than those who actually did the work. A contemporary management slogan was ‘If it ain’t broke, don’t fix it’, which tended to translate into ’Don’t spend any money on prevention, as it might not break’. Money spent supporting families has trouble showing big returns on management KPIs. The NSW Public Service was being massively downsized and there are some of the view that DoCS has never recovered from this downsizing, as human organisations rely on human knowledge and if there are just generic managers and new recruits, there is not enough corporate memory and experience to handle cases.

In 1999 when I was in Parliament, I was approached by a number of people telling me that DoCS was failing children at risk. The children with dysfunctional families from drug abuse, alcohol or domestic violence were not getting home support, and the initiation and supervision of fostering arrangements were poorly executed. I tried to set up an inquiry into DoCS. I had a number of NGOs speak to the cross bench. I had to get enough numbers so that there was a majority in the upper house. One of the groups suggested that the UN treaty on the Rights of the Child be a term of reference. This seemed reasonable, but Fred Nile said that he and Elaine would not vote for the inquiry if this was in the terms of reference. Richard Jones said he would not if it was omitted. I needed both of their votes to be sure of the numbers. I thought Richard would fold if I left it out- I was pretty sure Fred Nile wouldn’t. The Liberals, who were in Opposition at the time, were generally up for anything that would embarrass the Labor Government. I asked if they would support it, and told them that if Richard Jones changed, we had the numbers. They said, “We are a serious political party. If you cannot guarantee the numbers, we will not support you”. I regretted telling them about Richard and I did not move the motion. 21 months later the Liberals decided to support the idea, and approached me to amend my motion slightly, which initiated an inquiry (10/4/2002) .

The 2003 Inquiry found that DoCS was indeed dysfunctional . It had contracted out quite a lot of work to charitable NGOs without them having either the funds or the expertise to deal with difficult cases. Huge resources were spent monitoring wayward adolescents to keep them out of the criminal justice system until they reached 16, after which DoCS were not legally responsible for them. Cases did not have much preventive work done or decisions made and tended to stay on the desks of managers ‘unallocated’ until there was a problem . When there was a crisis or the matter went to Court, a relatively junior DoCS person would be allocated the case and have to face a crisis situation. The plans given to the Children’s Court for approval were hastily cobbled together at the last minute, often by new case managers who had only just got the brief. The Government had introduced ‘mandatory reporting’ with a phone and fax Helpline. This meant that there were huge numbers of reports, and huge efforts dealing with multiple reports on the same child or situation, but the call centre gobbled up resources that would have been better spent actually managing cases. The government was reluctant to get rid of the mandatory reporting ’Helpline’ as it was supposed to force schoolteachers etc. into reporting cases, which would leave no stone unturned. The function of DoCS seemed more concerned with appearances than reality and it got a lot of negative press.

Behind all this was the Children’s Court, where the conscientious Senior Magistrate, Scott Mitchell, was about the only quality control on the Department as he insisted in fulfilling his legislated role of ensuring that there was a realistic plan for children placed into custody of relatives or foster homes.

The Minister for Community Services, Fay Lo Po was sacked as was the head of DoCS, Carmel Niland. Neil Shepherd, who had been Deputy Director of the Cabinet Office and Health of the EPA replaced Niland. The Labor government promised a billion dollars over 10 years (most towards the end of the 10 years). Prevention was addressed with a new program, Brighter Futures, but the key problems remained with lack of action on 21% of cases noted by the Helpline, so there was another Special Commission into Child Protection Services in NSW in 2008 by Justice Wood , (who had achieved fame because of his work on Police corruption and paedophiles in 1997 ). Wood was helped by DoCS officers and one of their complaints was the stress that the Children’s Court put them under when they had to front up to Scott Mitchell with their child management plans. The report recommended weakening the power of the Children’s Court, and Scott Mitchell was disposed of by appointing a new President of the Children’s Court, who was to be a Judge- a level higher than Mitchell, who would have had to apply for the promotion that he was not going to get. On 1/9/2009 Attorney-General John Hatzistergos appointed Judge Mark Marien the new President , claiming he was strengthening the Court as he expanded on the new Judge’s CV, which lacked anything relating to child welfare.

An academic researcher, Katherine Macfarlane, noted that even in 2015 there was no data collected on how many Australian children in Out of Home Care ended up in the criminal justice system. She termed it ‘Care Criminalisation’ and noted that this data is collected in other jurisdictions .

It would seem that DoCs, which had a name change to Dept. of Family and Community Services (FACS) and then in 2019 came to be part of the Dept. Communities and Justice, still has its problems .

A report in the Sydney Morning Herald on 28/11/22 noted that a private contractor, Lifestyle Solutions, had subcontracted a child’s care to another subcontractor, Connecting Families and the children in question could not go to school as they were too cold without a winter uniform, despite the payment of $77,000 per month to the contractors to look after them . The Office of the Children’s Guardian has not accredited the Dept of Community and Justice Western NSW District to look after the 547 children in its care as it did not ‘meet the requirements‘ in the frequency of visits and that it had ‘limited evidence to demonstrate the district’s support for children’, its record-keeping was inconsistent, and its work in keeping in touch with families came in for questioning .

The Department has never been run properly. One of my minders in Parliament had worked there and spoke of the immense stress of going to Court almost unbriefed or accompanying Police to take children from the parents to foster homes. One of my patients who is an upper-middle level case manager has been off work on stress for 14 years, with no serious effort made to rehabilitate her.

But when there is no public housing, rents are unaffordable, welfare payments are insufficient to survive on, day care is expensive, Aboriginals are becoming increasingly isolated from both mainstream Australia and their own community leaders, ‘choice’ and subsidies have left poorer public schools as ghettos of disadvantage, inflation is rising and services are now for profit, it is hardly surprising that things are not going well. Anyone trying to put together a stable social situation for a disadvantaged family would struggle without these basic elements.

Society’s systemic problems need to be addressed if we are to return to the halcyon Aussie concept of a fair go.

https://www.smh.com.au/national/nsw/left-hungry-and-too-cold-to-go-to-school-urgent-review-of-children-in-care-20221127-p5c1kr.html

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.”

05/11/2022

The Twitter Story- and the bigger subtext

5 November 2022
Elon Musk likes to play in every game. His car company existed on hope for many years, but has at last ramped up production. He is in software, AI, batteries, cars infrastructure with tunnelling and trains, space rockets, investments, and now politics.

Twitter has established itself as the world’s political events exchange platform. A new concept like Twitter, which allows direct person to person contact was a good idea. Naturally if there is to be a conversation, everyone has to be in it, so a monopoly system is favoured if the system is new and is seen to work. So Twitter has become unique and immensely powerful. But the technologies that have everyone able to have an equal voice enable radical and socially damaging perspectives to be aired and publicised, legitimised by their ubiquity. Radical groups can link up with others anywhere, adding strength to isolated opinions and tending to lead to discussions that become even more radical and may lead to action.

So the social effects of the new technologies have created new and effectively unaccountable power structures. The regulation of these can be by government edict, as in China, or left to the corporate owners as in the West. Both these regulatory actions and the lack of them are controversial and many have long term political and social effects.

Now Elon Musk seems to have offered to pay too much for Twitter. He tried to withdraw his offer, but was forced to honour it. Having paid too much, he now wants to cut staff numbers radically. I was under the impression that social and political pressure was making Twitter more responsive to concerns about its social and political effect and its staff were part of an effort to minimise any harm it might do. If this is so, it is likely to be, no staff = no action.

So looking at Twitter as purely a financial entity verges on the absurd, but that is what is happening. And a financial mistake by Musk, and his corrective action in sacking people may have considerable effects. Commentators are already talking about the polarisation of US politics and the rise of violence with the storming of the US Capitol and the easy and unsophisticated attack on Paul Pelosi.

So the subtext of the situation is that an unregulated world market allows the immense concentration of power such that when the world’s richest man corrects what is for him a relatively minor financial error a major world information system is significantly disrupted and may become dysfunctional. (Whether it was considered dysfunctional before is a matter of opinion- it is hard to get an exact understanding of how much power the Twitter information model has).

One of the more ridiculous features of our society is that those with money, or who know about it are assumed to know about everything. They know about money, and have usually specialised in making it to the exclusion of other concerns. Often, it is dubious that they have the faintest idea about the implications of their actions.

Because the world’s economy advisers have allowed the world to become just a market we have the equivalent of elephants in China shops and we wait and wonder which way they will turn. A more cynical view would be that we have a situation where the playthings of the rich can have massive uncontrolled consequences and there are no regulatory mechanisms that have either the will or the power to influence the situation in the public interest.

The jobs of the Twitter employees are the tip of a very large iceberg, and the stories of Twitter’s share price have a much larger subtext. Here is an article from today’s SMH:

Twitter staff shut out as global purge starts
Zoe Samios, Nick Bonyhady

Twitter Australia staff were being locked out of their company accounts yesterday as billionaire Elon Musk’s job cuts hit the local office in Sydney, which employs about 40 people.
Musk told confidants he planned to eliminate half of Twitter’s workforce to slash costs at the social media platform he acquired for $US44 billion ($70 billion) last month.
Local staff in marketing and news curation were shut out of Twitter’s systems after receiving an email signalling layoffs but without any official confirmation that their jobs were being axed. Others were waiting to see if they would still have a job come Monday.
One employee said there was a sense of relief. ‘‘It’s not the company that we joined, and it’s not the app that we all love any more,’’ they said.
Others familiar with the company said the news team, which selects articles on topical moments in the national discourse, is among the largest local units and had about 10 staff. Some communications staff for the Asia-Pacific region have also been locked out.
Twitter’s local public relations representative declined to comment.
Australian staff received an email yesterday morning saying Twitter would ‘‘go through the difficult process of reducing our global workforce’’. Staff were to be told whether they still had a job via email by 9am Pacific Standard Time, or 3am AEDT yesterday, but the lockouts started early.
‘‘We recognise that this will impact a number of individuals who have made valuable contributions to Twitter, but this action is unfortunately necessary to ensure the company’s success moving forward,’’ the email, which was obtained by the Herald, said.
The Herald revealed in July that Twitter was closing its Australian office in Sydney, with staff to work from home.
All told, Musk wants to cut about 3700 jobs at San Francisco-based Twitter, people with knowledge of the matter said this week. The entrepreneur had begun dropping hints about his staffing priorities before the deal closed, saying he wants to focus on the core product.
‘‘Software engineering, server operations & design will rule the roost,’’ he tweeted in early October.
Twitter was sued over Musk’s plan to eliminate the jobs, with workers saying the company is doing without enough notice in violation of federal and California law. A class-action lawsuit was filed on Thursday in San Francisco federal court. The federal Worker Adjustment and Retraining Notification Act restricts large companies from mounting mass layoffs without at least 60 days’ notice.
Security staff at Twitter’s San Francisco headquarters carried out preparations for layoffs, while an internal directory used to look up colleagues was taken offline on Thursday afternoon, people with knowledge of the matter said.
Employees have been girding for firings for weeks. In recent days, they raced to connect via LinkedIn and other non-Twitter avenues, offering each other advice on how to weather losing one’s job, the people said. with Bloomberg

01/11/2022

Want to know about high energy prices?

4 September 2022

It is about market failure. When public power utilities were privatised a market was set up and power producers could bid into a market to supply at a certain price for each period of time. But obviously if someone bid in at a low price for part of the market, they would then watch as others bid in higher and made more money. So the price to all producers was set at the last bid, so the cheap producers made a lot of money.

There were a few problems. The amount of electricity needed varies widely. Coal fired power is not very flexible-it needs a constant load, cannot be stopped and can vary its output only slowly and within a limited range. When renewables came, solar is only in the daytime, and wind varies, so the system had a problem with ‘stability’- the ability to dispatch power when it was needed.

Another problem was rorting, though no one wanted to talk about this. There were big players who could withhold power so that there was a shortage; the price went up, and then they all cashed in. ‘Imperfect competition’ as economists would call it. No one wanted to build coal plants and there was not enough storage to let renewable energy last overnight or for dull or windless days. So the Morrison government said that gas was a ‘transition fuel’ and more gas plants would be built.

Meanwhile the Australian gas industry agreed to massive export contracts on the assumption that they could frack Australia as the US had been fracked. But the environmentalists realised the harm this did and resisted. So our price of gas went up. So the companies pressured the Albanese government, which is now breaking its election promises and approving fracking. Sorry environment- what is a bit of permanently polluted groundwater and desertification between friends?

Of course years ago, publicly owned utilities run by professional engineers were charged with providing electricity and gas to the public on a non-profit basis. They charged enough to cover their costs with some money for maintenance and future planning. The price was the average price of generation, not the most expensive component. The model worked quite well and could again. The change to a ‘market’ was ideological.

At an international level, the problem is similar, but it all being blamed on Russia, which is only partly true. Naturally in a globalised world, we are also affected by the European gas market, but less directly, especially if we frack to get out of it; which is a very bad solution, substituting a long-term problem for a short-term one.

Here is an international article:

https://eand.co/this-is-why-your-energy-bills-are-going-through-the-roof-cc99e2a59d12

16/10/2022

‘It’s the Monopoly Game Stupid’

13 August 2022
In case you missed it, that is a misquote of Bill Clinton’s 1992 election mantra, ‘It’s the economy,
stupid’. (He beat George W Bush when the US economy turned down).
Other apposite quotes are Stalin’s ‘The only thing I believe in is the power of the human will’ and
Mao Tse Tung’s ‘Power comes out of the barrel of a gun’.
The Stalin and Mao quotes relate to the power of governments, Clinton’s the power of economic
forces. It seems that the economy is more powerful than governments, as it was responsible for the
collapse of the Soviet Union, and the current rise of China is partly because they have a new model
where they set the rules for the economy.
The other variable more powerful than governments is technological innovation as it totally changes
the way we live, but this is not a point I want to discuss now.
The two Wars last century were over access to markets, so at the Bretton Woods Conference in 1944
that set the rules for a post WW2 economic system the object was to eliminate trade barriers so that
countries that were doing well would rise, and those doing poorly would fall, all this happening
gradually and without wars. This has turned the whole world into a market, and because money
crosses borders so easily, big companies can take over smaller ones, and governments, being
restricted by their borders have their powers limited. The ability to move jobs offshore makes
workers compete globally.
As governments’ power has fallen relative to big companies and the best brains in the nation go into
companies rather than into government, many governments do not believe that they can defy big
corporations. The Australian governments following the interests of the mining lobby and the
Murdoch press are just a couple of examples. Another is the tax and (non-)royalty system, and yet
another the drive to privatise public utilities as Capital wanted the returns from performing certain
functions that had previously been done by the public service for no profit. The governments did
not have the courage to say ‘No’, particularly as the companies were generous donors to the
political parties.
As in a Monopoly game, the rich get richer and the poor get poorer unless there is government
intervention, and even this has limits.
As we struggle with rising inflation rates, falling relative wages, house prices supercharged by 40
years of negative gearing and manifestations of rising inequality, we need to look at the root causes
and to what extent they can be modified. Governments need to rattle their cages domestically and
cooperate more internationally. Is Albanese up to it?
www.thesaturdaypaper.com.au/news/politics/2022/08/13/how-tax-bludgers-are-ripping-their-
fellow-australians

16/10/2022

A Robodebt Re-Run? Labor bound by Pre-election contracts?

22 July 2022

It seems that the Liberals are ruling beyond the election, by letting long-term private Centrelink contracts that Labor must honour. With the public service effectively dismantled, all work is done by private contractors, and doing tasks defined in a highly ideological framework. Even if the contracts were rescinded, with whatever penalty clauses the Libs and their contractors had agreed on, the Labor party has insufficient public administration staff capable to do the job of paying people in the short term. So they default to the Liberal contract.

This is about managing Centrelink’s Jobseeker program and ‘debt recovery program’. We have seen how the Liberals used Tax Office records in the Robodebt scandal, with totally unsubstantiated financial demands, then enforced by garnisheeing payments leading to suicides. Behind this sort of activity is a philosophy that those on welfare have only themselves to blame and need to be forced back to work, even when it is obvious that there are fewer jobs than job seekers, so that all that will change is who gets what jobs there are. Labor has to change the philosophy to a more realistic one, then have a serious plan to help those who cannot get jobs. Everyone knows that technology is replacing people in many areas, and jobs are moved offshore in manufacturing or services such as call centres because it is cheaper.

The fact that Labor was dependent on contractors chosen by the Liberals is another feature of privatisation that must be reversed. The Public Service must be rebuilt, and staff given guarantees of long-term employment- like they used to have. They must do their job helping people without the cost constraints of false bonuses that reward them for doing the easy tasks and leaving the hard ones.

www.sydneycriminallawyers.com.au/blog/robodebt-2-0-labor-moves-to-hit-up-the-unemployed-for-debts-caused-by-mismanagement/?fbclid=IwAR1S4n-kMmQIO70ABi_kStmuTgnqw2zQOE6RgXRz_C31hFJfQ3_0vik_Pio

13/01/2022

NDIS- An Unsuccessful Privatisation of the Welfare System

13 January 2022

I was never in favour of the National Disability Insurance System as I saw it as a defacto privatisation and reliance on a ‘market’ which would have another layer of assessors, who may or may not get it right in a single interview, the award of ‘packages’ of money which may or may not be enough and/or may or may not be wisely spend. The greatest problem was that as a ’market’ it would be always liable to have glossy marketing to vulnerable families, with services delivered as cheaply as possible, by unqualified people and profits skimmed off. The government coffers were topped up by increasing the Medicare levy, which just ensured that the private sector was given huge amounts of public money.

When I was in the NSW Parliament’s Social Issues Committee which looked at the issue, a key problem was that there was no actual numbers of what the needs were for disability services. There were two ways of calculating it. The first was to add up all the people on benefits on the assumption that everyone who needed benefits was getting them. The other way was to ask the Australian Institute of Health and Welfare (AIHW), the government-funded research body what percentage of the population had a disability and multiply that percentage by the population. Their answer was many multiples of those on welfare, presumably either because their relatives or support networks were looking after their problems, or there was unmet need.

It seemed obvious that:

There would be a huge increase in demand when more resources were (at least in theory) available
There would be a lot of bureaucracy that would waste a lot of money
Those actually doing the job and who knew the needs at a practical level would have less control so the decision making would worsen
There would be a lot of profiteering
Disability workers would face a race to the bottom in pay and conditions.

It might be noted that NDIS cuts out when you are 65, so the whole process restarts with recipients having to apply for a Disability Support Pension (DSP). The current government has boasted that it is putting only a third as many people on the DSP as formerly. My experience was that when the NSW government stopped all Workers Comp payments after 5 years, many people who had been on this support for 5 year at least had to apply for the DSP. Figures were rubbery as the NSW government did not want to know how many people were simply tipped off income support, but the best estimate was that about 20% got the DSP and the rest had to go on Jobseeker. I wrote a lot of detailed medical reports for people who were still unable to get the DSP, and then the government wrote to me and said that I could only charge a very modest Medicare amount to write such reports, so presumably doctors will not be able to take much time on them. I cannot write them in the time that the allowance pays. I had one patient who was 61, ethnic, unskilled and illiterate in English who had been on compensation for a back injury 13 years and was carer for an invalid wife and was refused the DSP despite my best efforts and put into the ‘mutual obligation’ multiple job application system.

But to get back to the NDIS itself, I recently chanced across this article recently from an old issue of Green Left Weekly- a personal story. It seems very credible.

My view is the NDIS needs to be abolished, but it will be very hard to rebuild a public welfare support system against a well-funded and established private lobby that is making a fortune and has at least one major party ready to undo any efforts in this direction.

NDIS is also making life harder for disability workers

Janine Brown, Melbourne, February 8, 2019, Green Left Weekly Issue 1208

I am employed as a disability support worker by a council and, since the introduction of the National Disability Insurance Scheme (NDIS), I will soon lose my job. This is my story.

I am in transition to becoming “self-employed” with an ABN (Australian Business Number), which makes me a small business, and enables me to sign individual contracts with each client.

The other alternative was to become an employee of a private company that has contracts with NDIS clients.

From these two bad choices, I decided to go with the former.

We have been told that NDIS will be much better for hundreds of thousands of Australians. But is it?

Once families receive NDIS funding, it is their responsibility to make the choices for their child or adult family member and manage their finances over a 12-month period.

The idea that they are in control of the life choices of their family member may sound appealing. But the stress levels rise with the amount of bookkeeping required and when it is difficult to clearly define their needs.

Parents are encouraged to employ an advisor, but that person is paid for by the funding for their family member. That NDIS planner will recommend “one of theirs”, someone who will ask many questions and tick many boxes but who doesn’t really know the needs and interests of the person concerned.

I was once supporting a child at home when the NDIS planner was interviewing his parents. One of the questions was “Do you own your home?” I invited the planner to meet the child but she declined, saying it wasn’t necessary.

As much as I agree with giving parents options in choosing a carer for their child, the options being presented are often inadequate to the task at hand.

By privatising the disability sector, many people are obtaining an ABN (which is easy to do online) and presenting themselves as a qualified support worker. They do not need background checks and parents who search online for support workers only see promotional material.

I am qualified and have many years of experience, but l am now in competition with an untrained person who is willing to provide “services” at a cheaper rate. They call it business. I call it a dangerous rort.

NDIS has also meant that our work is now casual: we no longer have permanent employment with leave benefits, superannuation and union support.

A few weeks ago a parent asked me to do a buddy shift with a potential new carer as she lives near the client. Having a carer nearby is appealing for parents who may need to call on you at the last minute.

l agreed to do the shadow shift. I found that the inexperienced carer had no idea about the work responsibilities or the safety measures. She had no knowledge about supporting someone who is non-verbal with behavioural difficulties, who needs support in all aspects of daily life. She appeared to be more interested in the times of shifts, rather than the child’s needs.

It is easy to be blinded by the NDIS marketing, but just as the privatisation of the aged care sector has led to cuts in staff, quality meals and wound management, the same is true for the disAbility sector.

There are also many grey areas concerning the care of people with a disability.

Statistics show that as the number of people being diagnosed with autism (done by general practioners) has increased in the past few years. This adds to the NDIS budget.

As a result, NDIS bureaucrats are thinking of using “their people” to make the diagnosis. If this happens, we can expect a decline in the numbers of people being diagnosed with autism and many who need support will not be eligible for funding for appropriate services.

Another grey area concerns supporting people transitioning from childhood to adulthood, and teaching them to become more independent.

It is sometimes possible to teach a person to take public transport to an activity. However, it becomes a crisis situation when the bus/tram/train is late or cancelled and the person has lost all points of reference and they have to navigate replacement measures.

The NDIS planner may have ticked a box for someone to take public transport to an activity when things are going well, but an unexpected or crisis situation which causes the person anxiety is not factored into the plan.

It is imperative that we continue to support vulnerable people in our community. We must not be blinded by the NDIS hype when the reality is vastly different.

www.greenleft.org.au/content/ndis-also-making-life-harder-disability-workers

05/01/2022

COVID Day 4- a non-PCR Day

5 January 2022

I did nothing today- it just took longer than usual.

I felt much the same, a sore throat, not much energy, a bit of a headache and bouts of a dry cough. I did not feel like exercise and I thought that I had better try to get a PCR test and some Rapid Antigen tests in case we needed to prove we were not infectious, or had other people who were concerned contacts.

I researched online where the PCR (Polymerase Chain Reaction) tests were being done. The site I used 2 weeks ago, a 4Cyte drive through test that had taken an hour to do and 3 days and 16 hours to get results from was closed Wed-Friday. It was not clear why this was but the Laverty Pathology group at 60 Waterloo Rd near Macquarie Centre was open till 4pm. I took a novel in case of a long wait and drove there.

As I approached from the google direction cars in the left lane were not moving from the major intersection as far as one could see to the next hill. Many of them had their tail lights on, so I reflected that they were sitting in a line with the engines on. Bad for the environment, but it at least told me that his was the queue. I turned off the engine and started to read. After a while I was wondering why no progress at all was being made, and I thought I might ask if I was under some misapprehension. As I looked up, a pleasant looking woman in her mid-30s got out of the small car ahead, and went to her boot.

I called to her out the window, ‘Is this the PCR test queue?

‘Reckon so’, she said, ‘I’ve brought some snacks to get through it’. She took some biscuits, grapes and a drink and got back in.

We advanced glacially slowly, and I noticed that there was a side road a little way down the queue. Space had been left so cars could go in and out of this side road, but cars had also started to queue there, and of course the two queues merged at the intersection. I had not thought of this until I was nearly at the corner, and I suppose the woman in the car hadn’t either. Some on the side road were shouting abuse or tooting as if we were somehow pushing in to their queue. There were no signs, no guides and nothing online, so it seemed that the only fair thing to do was to take alternate cars. My young friend had recognised this before I had and moved her car across the middle of the side road, so that cars exiting or entering could go in front or behind her, but she could be sure that the side road queued cards did not just push in. There was a cacophony of abuse from the side street.

The queue moved forward a few cars, so I followed her closely, letting one car in as seemed fair. A large 4WD with a man screaming obscenities at me tried to push in, but I kept him out. I wondered if he would get out and make trouble but he did not. The passenger in the car I had let ahead of me had got out and was remonstrating with the woman who had been in front of me. It was tense. I was very glad we were not in America with some people having guns.

We continued our glacial advance, then a car coming in the other direction stopped. The driver stuck his head our and was shouting something to those in the queue ahead of me. I could not hear him, but he did not seem abusive, so as he passed I called to him to ask what he had said. He said, ‘They have closed early; I was second in the queue and they told me to go away’. It seemed likely that he was right, but most people had waited so long that they were not willing to drive off, so we moved quite slowly till everyone had driven past the ‘Closed’ sign that had appeared in the driveway. It was 2pm. The testing site was advertised to be open till 4.

No test and a couple of hours wasted. I have COVID. It is not recorded in the system. It seems that I will recover. Will I waste another few hours tomorrow? And if I do will I have PCR results anyway? I am scheduled to see my patients again 9 days after the onset of symptoms- presumably I will be non-infectious. Luckily I got some RAT kits.

It is not hard to see where anger and frustration comes in all of this.

‘Personal responsibility’ has a very Darwinian edge.

Thank God I am not very sick.

04/01/2022

The Chinese Way

4 January 2022

Everyone want to criticise China as an authoritarian state, but if you stand back and look at how they tackle challenges that we have, there may be lessons to be learned.

There was an interesting show on ABC TV last night hosted by Hamish Macdonald ‘The China Century’, Part 1 of 5. It looked at the Tiananmen Square protests of 1989 and their ruthless repression. But next week it will look at how they have combined capitalism and strong state control.

Competition increase efficiency when it lowers prices, but note in the late stage of ‘laissez faire’ monopolies allow supernormal profits and their political influence puts them above the law. Sometimes the loss of central control may also mean that a fragmented industry cannot produce state of the art products. I read some time ago that the US is having a problem producing good fighter planes because the intellectual property is now spread over a number of competing companies, so no one company can be state of the art on all aspects. A single body controlling the situation would not have this problem.

The other aspect is that the Chinese can write the rules for its industries and not simply assume that whatever makes the most profit in the immediate term is the best place to consume resources.

In Australia, our economy is totally out of whack because the tax concession of negative gearing has meant that everyone has simply invested in real estate as a ‘no brainer’ way of making money. But the rise in prices is in a sense arbitrary. If a house goes up in price from $100k to a million, it is still the same house. The difference is that the person who now buys it has $million debt. The ‘profit’ is someone else’s borrowing. So at a national level, we have the second highest level of private debt in the world (after Switzerland) and just pay interest to foreign banks. We also have no money to invest in our productive export industries, or even think about them as real estate is so easy. We note that developers distort the electoral process and do dodgy deals to get their approvals through, but once it is all done, we wring our hands- nothing can be done. The building stands, and it will all happen again next time.

We watch askance as our regulatory systems fail. The Banking Royal Commission was initiated by a whistle-blower not the regulator, and nothing much has changed; one banker resignation, no one charged. We saw the Aged Care inquiry, the Casino Inquiry were both whistle-blower initiated as well. We are up to 4 inquiries into iCare and nothing changes. We hope that our buildings are OK, as the regulatory system has not been working too well there for about 25 years.

We note that our rich are getting much richer and our poor poorer, but our government does not want to do much about that. Hey if you can’t afford a Rapid Antigen Test, you can always wait and see if get sick. ‘Universal health care’ is a good slogan.

We see our kids getting fatter and more addicted to computer games, but there is not much we can do about that. We are moving to high rise schools as so many were sold off in the 1980s and now there is no space for recreation, and we also saved on sport teachers and made serious exercise optional.

We worry that our electoral system is influenced by fake news, trolls and data analysis companies. We understand that the social media concentrates on putting like people together so they will stay logged in and be available to advertise to. We understand that a shock headline also attracts more interest and controversy, so we are hyper stimulated until we ignore what is important. Advertising always affected media content towards making people more receptive to the ads and purchasing; social media has now put it on steroids.

The Chinese have taken all this on. They have put a super tax on rich people and made statements about everyone having a decent life. They have tried to lessen kids times on computers and to increase their exercise. They have taken on social media, and most recently forced a major developer to demolish high rise building because the building permit was illegally obtained. The developer is a major one, and already in danger of going broke. Can anyone image this happening in Australia or the US?

Many problems in the world are universal, and watching what a truly authoritarian government can do is interesting. We have the contrast of our governments, that seem to want to be as small as possible and not even acknowledge problems, and theirs which seems to testing the limits of power. We may not want to do it ourselves, but if we ever decide to do anything, it will be helpful to have information on the outcome of the range of possible actions.

Here is an article about Evergrande, the Chinese property developer which is going broke and now had to demolish significant assets. It was in the SMH, from Bloomberg.

Next Monday on ABC TV at 8.30pm the second article on China, considering its use of the combination of capitalism and central control.

China’s Evergrande halts trading after ordered to tear down apartments

By Jan Dahinten

January 3, 2022 — 3.29pm

Chinese developer shares tumbled following local media reports that China Evergrande Group has been ordered to tear down apartment blocks in a development in Hainan province. Evergrande halted trading in its shares.

An index of Chinese developer shares slumped 2.8 per cent as of 11.37 a.m. local time, with Sunac China Holdings and Shimao Group Holdings plunging more than 10 per cent. A local government in Hainan told Evergrande to demolish 39 buildings in 10 days because the building permit was illegally obtained, news wire Cailian reported on Saturday.

Evergrande gave no details on the trading suspension other than saying it would make an announcement containing inside information.

The government of Danzhou, a prefecture-level city in the southern Chinese province of Hainan, asked Evergrande to tear down 39 illegal buildings in 10 days, Cailian reported on Sunday, citing a document from the local government.

The report cited the document, which was dated December 30, as saying that the Danzhou government said an illegally obtained permit for the buildings had been revoked so the buildings need to be dismantled.

Evergrande didn’t immediately respond to a request seeking comment and calls to Danzhou authorities went unanswered on a public holiday in China on Monday.

The company on Friday dialed back payment plans on billions of dollars of overdue wealth management products as its liquidity crisis showed little sign of easing.

Property firms have mounting bills to pay in January and shrinking options to raise necessary funds. The industry will need to find at least $US197 billion ($271 billion) to cover maturing bonds, coupons, trust products and deferred wages to millions of migrant workers, according to Bloomberg calculations and analyst estimates.

Beijing has urged builders like China Evergrande Group to meet payrolls by month-end in order to avoid the risk of social unrest.

Contracted sales for 31 listed developers fell 26 per cent in December from a year earlier, according to Citigroup Inc. analysts. Evergrande’s sales dropped 99 per cent, the analysts wrote in a note dated Sunday.

Bloomberg