October 2007 Archives

John Howard's latest announcement of millions to be spent on new "Australian Technical Colleges" is not new. The original promise was made last election, and the implementation of those has not been plain sailing according to the Labor opposition spokesman ...

Mr McMullan said that figures released on the weekend illustrate the worst features of the Howard Government’s failed strategy in this area of federal/state relations.

Only 21 of the 28 mooted colleges have opened so far, and those that are open are struggling for enrolments. Only 2 of the 21 that are open have met their 2007 target enrolment figures. The budget to run the whole 28 has recently been raised to $552 million and, given the low numbers of enrolments, this equates to nearly $175,000 per student.

Mr McMullan told the meeting, “The Australian Technical Colleges are expensive, inefficient and ineffective. Labor has always been concerned that they merely attempt to duplicate the services already offered by TAFE, but without the networks and the access to apprenticeships that TAFEs have.

I always thought the original proposition was stupid considering the states already run technical colleges. Surely it would have been more sensible just to increase the funding for the existing system?

Of course, the conservatives had another agenda, and that was to negate the Teachers' Union by forcing staff in the new colleges to go on AWAs. True to form, those AWAs have some nasty conditions ....

TEACHERS will be required to submit to blood tests for drugs or alcohol under harsh new industrial contracts that strip away a plethora of conditions.

The tests may be ordered under confidential Australian Workplace Agreements covering staff in the Howard Government's Australian Technical Colleges.

One AWA - seen by The Daily Telegraph - gives a technical college the right to take samples of an employee's blood at any time. It reads: "The Australian Technical College . . . reserves the right to apply any reasonable testing procedures to the employee without notice to detect the presence of alcohol or drugs in the employee's blood."

In the unionised NSW public school system teachers have never been tested for drugs or alcohol.

President of the NSW Teachers' Federation Maree O'Halloran said a proposal for tests would be a "gross infringement of civil liberties".

So the original reason for the implementation of these colleges was a classic Liberal government union bashing exercise, and nothing to do with increasing employment as they've piously claimed this time round.

One of the assumptions made by both parties in the current election campaign is that the economy will keep growing at the present rate for the foreseeable future. Howard's and Rudd's recently announced $30 odd billion tax giveaways are only deliverable if that assumption holds true.

There are a couple of economic 'elephants in the room' that both side of politics don't want to mention. One is the sub-prime lending crisis in the US, the other is Peak Oil. The former may knock a few years growth off the economy. The later issue, Peak Oil and its effect on the oil price and world economy, is much more serious.

If the more dire predictions regarding Peak Oil eventuate, the predictions of tax giveaways will be laughable in the face of declining government receipts.

Peak oil and climate change are related, but the effects of peaking oil supplies will be felt much earlier and have a sharper negative effect on the economy. Predictions of just when the peak will occur vary. Some say it's here now, others say it won't happen for a couple of decades. Even if the optimists are correct, it's not that far away.

Over the last week the oil price hit $90 barrel*. Admittedly, that spike was a reaction to the threat of Turkey taking military action in Iraq. However, the steady rise of the oil price from around $30 three years ago to $85 this month is simply due to demand outstripping supply. $100 / barrel is not out of the question in the near future.

Since the 1960s, two barrels of oil have been consumed for every barrel found. China and India are competing for oil on the world market for supplies, and they have some way to go before they approach anything like the per capita energy we consume.

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Australia has been insulated from the current rising energy prices due to the rising value of the Oz dollar. Not every country is so lucky, and eventually increasing energy prices will start to negatively effect the world economy.

Perhaps the imminent $100 per barrel oil price will put the issue on the public agenda. Until then, Rudd, Howard and Co will happily perpetrate the myth that resources and rising living standards last forever.

*$92 as of today.

How would Costello be feeling after watching John Howard's performance during the debate last night?

Howard was woeful, in my opinion.

Rudd exploited the governments perceived weaknesses in the areas of health, climate change and education. Howard looked weak on those subjects because the government has generally ignored them throughout his incumbency.

If Howard had done the sensible thing and resigned a year ago, Costello, as a new leader, wouldn't have carried that baggage to the same extent. He could have subtly sheeted home the blame for previous inaction to the departed leader. The government's new interest in these areas wouldn't have looked so cynical.

Howard's stubbornness in not resigning with dignity when he had the chance, and Costello's inability to force the issue, has probably cost Costello his turn as PM.

And yes, I know I'm ignoring that Howard has lost every previous election TV debate as Prime Minister. Never write of the chance of a miracle Tampa.

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The above shows some of the election material received this week at our house in the Benelong electorate. That's not all of it, some was thrown away, but the ratio of John Howard's vs Maxine McKew is about right.

JH really must be fighting for his political life as no one is safe from him popping up when least expected. My kids have seen him twice in the past few weeks. I've been spared, but I have shaken hands with Maxine a couple of weeks ago in a local shopping area.

Bring on election day.

On day one of the election campaign, John Howard proved how cynically the conservatives view the electorate.

Only time will tell if the proposed tax cuts have the desired effect, but hopefully the population is smart enough to see this for what it is ... a crude election bribe.

It's hard to see how tax cuts of this magnitude wouldn't put further pressure on interest rates as the economy nears its growth limits. It would be far more sensible to put those funds towards increasing spending on education, health and infrastructure, all areas that have been neglected by the present government.

There's something wrong when funding essential services is ignored in favour of providing extra cash to end up being spent on consumables. Of course, this is the Conservative way. Give the cash to the population whom, in their eyes, should be spending it on the services the government doesn't really want to provide, like, education, health and infrastructure.

Rudd is being sensible to date and not rushing to match the deal. With a large proportion of population indicating they'd like more spending directed at the neglected areas, Labor would be sensible to temper any tax giveaways in favour of targeted spending.