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By Les Scammell, January 31, 2011 11:29 pm

I am going to declare my hand before proceeding – I am a labor supporter, always have been. When it comes to Julia Gillard, I am sitting on the fence at present. She has some very good attributes, but one very bad attribute – but then, she is a politician first. The one thing she wont do is listen to what others have to say, then make changes if their thoughts are logical.

The flood levy is one very good example. The levy in principle is, in my opinion, a good idea. The implementation is not what we need however. Why I disagree with Tony Abbott and co is very simple – he want to cut extra from the budget rather than implement a levy. I don’t know if he is really being sincere in this respect – Howard introduced a levy of 0.2% to help pay for the gun buy back scheme – I think this flood levy is on a par with that.

Back to my original point about cutting into the budget further, the problem I have with this is that, being Australia, final costs are always a lot more than originally estimated. What is now $5.6 billion in costs will most likely be $8 billion or more come the final reckoning. If those figures do blow out, that is when we will need to trim more from the budget. Trim it all now, and there is no room to move when we need to.

I said the flood levy was a good idea, and in principle it is. However, It is probably a little too much, but more importantly, being done for the wrong reason. Australia is a land of drama – we have floods, tropical cyclones, wild bushfires and even the odd earthquake. We need a permanent national disaster fund and this should be funded across a number of levels. First, a permanent levy at around 0.2% or even 0.25%. I agree with the targeting of higher paying incomes although $50k seems a little low. I would suggest starting at around $75k-$80k with the second tier cutting in at $150k with that levy at 0.5%. businesses should not be exempt, however I think this is where highly profitable companies can afford to pay – perhaps a 2.5% levy on all businesses that record $100 million plus per year profits.

Funds in this national disaster fund would accumulate until needed and would only be used to pay for infrastructure rebuilding and repair. It could be managed by an independent board, funding infrastructure on 1:1:1 basis – $1 for every $1 spent by both the Federal Government and the State Governments.

This levy is, as I suggested, a good idea. However, it is flawed in its rationale and in its life span. Of course, I am not an economist or politician so I just think logically.

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By Les Scammell, January 27, 2011 10:43 am

That Used To Be A Road

With much of the east coast of Australia now heavily involved in the clean up following recent flooding, the question is now turning to who will foot the bill. It’s a thorny question that is bringing the best and worst out of many people. Insurance companies are ducking for cover and trying every strategy possible to avoid payouts, governments are crying poor, and the Australian population together with many from around the world have already dug deep to the tune of around $80 million. However, with a flood bill estimated to be close to $6 billion, the money has to come from somewhere.

The $80 million that has been raised should and will go to the victims of these floods. The $5-$6 billion that is being touted refers to the cost of rebuilding infrastructure – roads, bridges and rail rebuilding will chew up a lot of those funds. Australia as a nation relies on this infrastructure. In central Queensland, coal exports have been brought a virtual standstill with millions of dollars being lost everyday. Around the country, roads, bridges and rail are essential for transporting the fruit, vegetables, grains and meats from rural areas to centralized markets.

Should we buy sea planes

Because we rely on this infrastructure for our food, we as a nation have to be responsible for the costs of restoring it. If that means a small increase in the Medicare levy – so be it. However, I would much prefer to see a small permanent levy introduced for disaster relief – if you like, a national disaster relief fund. This should be funded by residents, businesses, insurance companies and governments at all levels.

There is a lot of anger being expressed around the community because of the mis-information that is being spread in some sectors. There are many that believe that a Medicare levy would be used to help those who didn’t have insurance for example. This is not, or at least should not be the case. Any levy imposed must be restricted to infrastructure spending alone as would any funds accumulated in a national disaster relief fund.

Australia is a great country. We do however experience the best and worst of what mother nature has to offer. When droughts, floods and cyclones hit, they do it big time. We are lucky that earthquakes, tsunamis and volcanoes are not a part of that list. Add to this the disasters we create with bush fires, occasional road and rail incidents, and you will find that we have a disaster of some description on a regular basis. We are I guess fortunate that we have never had a major air disaster let alone an air disaster over a heavily populated area. We are also fortunate that terrorism has not found its way onto our shores in the way it has in many other countries.

A .25% or .5% levy, while perhaps costing us $5 a week extra in taxes, is nothing compared to the increased costs in food if this infrastructure is never repaired. Better yet – I wonder if Gillard and Co are prepare to think long term and introduce a national disaster fund. It was one major recommendation that came out of the 1974 funds – but no one had the political vision to run with it. I wouldn’t hold my breath this time either.

What do you think? Would you support a national disaster relief fund? How much are you willing to pay – o.2% 0.15% 0.25%? After all, it is our country and it is our food supplies at risk!

Road and Rail underwater

Comments (2)

By Les Scammell, January 20, 2011 10:27 am

Many places still consider 21 as the coming of age birthday, and traditionally it was. These days, our teens are considered adults from the age of 18, and for them, that birthday can’t come soon enough. I am a traditionalist with a modern philosophy – we celebrate both.

The 18th birthday does celebrate that ‘legal’ entry in adulthood. The 21st birthday in my book is still to celebrate the real coming of age. If you like, the 18th birthday signals a three year apprenticeship into real adulthood. It’s probably a little discriminatory, but then, we are only talking about a celebration – I just like to mix the modern with the traditional.

For grandparents, you can celebrate with special 18th birthday gifts for granddaughter or grandson. These can be special gifts that last a lifetime, gifts that will always remind them of their 18th birthday, and of you of course. It’s a special day – and in our home, they can expect another for their 21st.

Comments (1)

By admin, January 18, 2011 12:05 pm

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