War mongers and interjections from ex PMs

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Bushmaster on patrol in Iraq 2008, Australian War Museum CC

Why is the media so enthralled with the utterances of ex-Prime Ministers, namely Paul Keating, John Howard or Kevin Rudd? Keating has been critical in recent months of the current government (his lot, I remind you) about defence issues.

Keating first lashed out at the Albanese Government in March over the nuclear submarine announcement. He described the $368 billion arrangement to buy nuclear submarines through the AUKUS defence pact as “the worst international decision by a Labor government since Billy Hughes tried to introduce conscription.” Strong words.

Keating used the National Press Club in Canberra to criticise Labor for its “incompetence” in backing the decision to sign up to AUKUS while in opposition. At the same time, Keating attacked policy decisions by defence minister Richard Marles and Foreign Affairs minister Penny Wong as “seriously unwise”, accusing them of allowing defence interests to trump diplomacy.

As it turned out, he was baying into an empty chamber, as veteran sleuth Brian Toohey discovered. The US (a key member of the AUKUS triumvirate) has said it cannot now sell three to five used Virginia class nuclear submarines to Australia, as Toohey related in the public policy journal, Pearls and Irritations.

Toohey wrote that the chief of US Naval operations Admiral Michael Gilday was recently reported from Washington as saying the US shipyards are only producing subs at a rate of about 1.2 a year. A minimum of two a year is needed to fill the US Navy’s own requirements. Until then, Gilday said, “We’re not going to be in a position to sell any to the Australians.”

“If Albanese were genuinely a good friend of America,” Toohey wrote, he would say ‘we don’t want to deprive you of any nuclear submarines, so we’ll buy readily available conventional subs that serve our needs’.

Toohey added, “Instead of grabbing this chance to get out of an impossible commitment, he behaves as if everything is still on track.”

The veteran journalist and author (he’s 79) broke numerous stories about national security and politics in his heyday, regularly receiving leaks that enraged and embarrassed politicians.

\The submarine deal is not the most recent example of ex-PM Keating getting stuck into his own party.

As The Guardian’s Paul Karp reported this week, Keating labelled the head of NATO, Jens Stoltenberg, a “supreme fool” for wanting to increase NATO’s ties with Asia. Keating’s comments coincided with Prime Minister Anthony Albanese’s travels to Germany and the NATO leaders’ summit in Lithuania. (NATO stands for the North Atlantic Treaty Organization.)

This state visit produced announcements about Australia’s material support for Ukraine via the donation of 30 Australian-made Bushmasters. Known in military parlance as Protected Mobility Vehicle or Infantry Mobility Vehicle, the Bushmaster is an Australian-built four-wheel drive armoured vehicle. ($2.45 million each).

Mr Albanese also confirmed on Monday that the German Army would buy 100 Australian-built Rheinmetall Boxer armoured vehicles. In case you did not know, this is something the Queensland government should be crowing about as the Boxers will be manufactured at Rheinmetall’s plant in Ipswich, near Brisbane. (The German company owns 64% of this joint venture – just thought you should know that.)

The Prime Minister’s announcements this week are yet another sign he and his executive team are well capable of making big decisions and acting upon them, despite criticism from the left and right. From my perspective, the Labor government seems to be a good deal more ‘hawkish’ than some of its predecessors. Then again, the top echelons of government in Canberra are no doubt privy to daily security briefings which could be prompting the escalating defence strategies.

Not the least there is China’s increasing economic and diplomatic push into the Asia Pacific, namely the Solomon Islands, Sri Lanka and Papua New Guinea.

Keating has been a strident critic of the Albanese government’s apparent strategy to prepare for possible aggression from China. He would prefer, I suppose, closed-door diplomacy.

Paul Keating, I’ll remind you, was infamous in his political career for an ability to deliver invective-laden tirades that inevitably drew headlines.

But who cares what Paul Keating thinks about anything? He had his day at the Despatch Box.

There’s a reason the likes of Rudd, Howard and Keating are ex-Prime Ministers. The people – that’s you and me and Freddie next door, not to mention their own party – got sick of them and voted them out. Brilliant, motivated and influential as they once were, they are not the least bit relevant now.

In tackling this topic, about which I know little, I relied on some expert research from the policy wonks who write for Pearls and Irritations (recommended), the Australian Strategic Policy Institute, and a defence blog which recently took a similar position on interjections by former PMs.

As Stephen Kuper wrote in DefenceConnect,

“Our world has changed significantly since the 1990s — gone are the heady days of elated optimism in the aftermath of the collapse of Lenin and Stalin’s “evil empire”,[ in its place] the global information super highway, a truly global economy responsible for lifting hundreds of millions, if not billions out of abject poverty, yet it seems, someone has forgotten to tell former prime minister Paul Keating.”

It is worth noting (from another source) that Australia’s Defence spending under the Keating government (1991-1996), was slightly above or below 2% of GDP, which is the financial benchmark for ensuring the country can be independently protected from aggression.

Defence spending was between 3% and 4% of GDP during the Vietnam war and has peaked above 2% at various times, including the 1980s when the world was in a relatively benign state.

Marcus Hellyer of the Australian Strategic Policy Institute wrote a two-part report in 2019 about the reasoning behind (and the flaws) of working on 2% of GDP. As he observed, GDP rises and falls, and any number of global crises can interfere with this way of calculating defence budgets. For example, former PM Kevin Rudd’s stimulus-spending during the Global Financial Crisis put a serious kink in the defence spending supply hose.

“As official predictions for GDP growth change, the Defence Department’s future funding changes,” Hellyer wrote. He argued that defence spending based on 2% of GDP was likely to fall short of the fixed-funding line presented in a 2016 defence white paper.

“If a future government sticks to 2% of GDP rather than the white paper line, the Defence Department would take a substantial funding cut.”

The strategic risk arises with what defence calls its ‘future force’, much of which will not be delivered until 2030. It is probably already unaffordable under the white paper’s funding model.

Australian Budget papers reveal a funding shortfall with the 2023-2024 defence budget ($54.9 billion), projected to be $5 billion short.

If I may editorialise now, that’s a serious problem for any Australian politician trying to wear big boots to a global foreign policy conference. While Albanese, Marles and Wong have been shoring up alliances with the US, UK, Japan and now, it seems, Germany, most strategic analysts agree that Australian needs to become more self-reliant (with the added financial burden that implies).

I was digging around looking for a quote about peace to finish this uneasy essay on a positive note and found one from an unlikely source.

Peace is not absence of conflict; it is the ability to handle conflict by peaceful means.” – Ronald Reagan.

Yep, he said it.

Tom, Dick, Harry and Paul

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Photo by Paul Williams https://flic.kr/p/NFKTu

Brisbane songwriter Sue Wighton has a zany song about the daft names people give their children, with a droll chorus that starts: ‘Whatever happened to Tom, Dick and Harry?’ It’s a good question.

It would never have occurred to me as a song subject, but Sue is an ex-school teacher, so that explains a lot. She will have seen her share of exotic baby names like Joaquin, Griffin, Phoenix, Jasper, Peregrine and Fox. I’m only indulging myself with boy names here – as this essay progresses, the why will become obvious. If you are truly fascinated by the subject of unusual girl’s names, US website www.popsugar.com explores the A to Zee of names like Aria, Darby, Kaia, Marisol, Yani and Zaylee.

Yani’s not that unusual – I actually know one and if you like choir singing, you probably do too.

But as for the children of celebrities forced to wear names like Heavenly Harari, Pilot Inspektor or Sage Moonblood, some, on reaching adulthood, may apply to change their names to Fred Smith or Bob Wilson.

I thought about this (a while ago), when doing the crossword in the Sunshine Coast Daily, which just happens to be on the same page as Showbiz News. Somehow my eyes always drift to the top of the page. Here I learned that Kim Kardashian and husband Kanye West were going somewhere or other with their daughter North West (u-huh). The Kardashians have since spawned two more children, dubbed Saint and Chicago. They also have a Pomeranian named Sushi, although that is something of a non-sequitur.

It reminded me of that movie ‘Captain Fantastic’, about an anti-establishment chap and his wife who raise six children off-grid in the American wilderness and bestow upon them “unique” names like Bodevan, Gellian and Vespyr.

My childhood was blighted to a degree because the family moved to New Zealand, where my common enough Scottish middle name produced howls of laughter and derision. So yes, I empathise with people whose parents have dubbed them names which may provoke schoolyard bullying.

As Christian names go, Robert or Bob is common enough, though its use today is well below its peak in 1930, when matinee idols Robert Mitchum and Robert Taylor inspired those with child at the time.

Rankings of the top 50 boys’ names in Australia, are led by William, Jack and Oliver. Tom (6) is still in vogue and Harry (30) is still a popular choice of name for British babies, thanks to the next generation of Royal princes.

But Richard (Dick) wasn’t sighted, possibly because a generation of fathers called Richard took offence at their name being shortened to Dick and its sniggering variants.

Aussie parents don’t go too far out on a limb with baby-naming – Jayden, Braxton and Jaxon are the only ones that look odd to the eye. Religion still has some influence, apparently, with Matthew, Luke and Noah in the top 50. Mark, however, is missing, so too Saul and Paul.

You can always pick people whose parents hero-worshipped movie stars of the 50s by their names – Kirk, Victor, Marlon, Burt or James.

Folk were much less adventurous in the middle part of the 20th century. Popsugar.com dipped into the US Department of Social Security archives to inform us that Michael was the most popular boy’s name from the 1960s to the 1990s (since supplanted by Jacob). Lisa (1960s), Jennifer (1970s, Jessica (1980s and 1990s) and Emily (2000) lead the girls’ list, although that’s the last I’ll have to say about girls for now.

Pop Sugar’s 2018 take on this subject was to come up with a list of ‘unique’ boys’ names including Aaro, Abbott (truly), Ackley, Alber, Arian, Banner, Benton, Binx, Bowie and Brantley. A few cool ideas there if those with child want to have a look.

Christian names tend to become popular/trendy through celebrity, be it TV, movies, music or other forms of artistic endeavour. The name Paul reached the pinnacle of its popularity in the US in 1969 (1.4% of all boy’s names), coinciding with the popularity of folk-rock duo Simon & Garfunkel, who had universally known hits through the sixties until breaking up in 1970.

Few people would know why I chose to write a song about the famous Pauls of the world, other than to recount the story of the six Pauls we knew in our home town at the time.

She: “I saw Paul up the street.”

He: “Paul Who?”

It became a thing and the strange song got a hold of me and wouldn’t let go. This link takes you to our soundcloud page where you can listen to the song and others.

I stayed away from religion – I just assumed everyone knew there have been eight Pope Pauls and Paul the Apostle was just too obvious.

It’s a fair guess Paul Keating’s parents did not foresee the “small and/or humble” Paul (the Latin meaning of the name) become a wily Federal politician, the “World’s Greatest Treasurer” and eventually Prime Minister. And he still won’t go away, bobbing up on national current affairs programmes waxing eloquent about leadership and policy.

This website reveals everything you’d ever want to know about the name Paul. I wish to hell I’d found it before starting on my song!

I don’t much see the value in explaining all the references in Paul Who – some things deserve to remain a mystery, and besides, it’s fun to read between the lines.

I make an exception for a reader from Portugal who apparently downloaded the album on ITunes. He sent me a short email: “Who is the “making gravy guy”? I replied in detail about How to Make Gravy by Australian writer Paul Kelly. The story, as you know, is a letter from Joe to Dan, who has the responsibility of making Christmas go smoothly as he (Joe) will be behind bars for the duration.

The hidden agenda in ‘Paul Who’ is the cult of celebrity, mostly dominated by men. There’s only one Sheila (Aussie parlance) mentioned here, because of her notoriety on the extreme fringes of politics.

For what it’s worth, I thought a song dedicated to all the Pauls out there was long overdue. This website reckons 1.37 million boys in the US have been named Paul since 1880, though it tapered off in the 1970s. The most people given this name (26,968), was in 1957. Those people are now 62 years old. In Australia, Paul has fallen off the top 100 list, although Dylan is still there.

Curiously, if you are curious, the name Muhammad and all its variant spellings came in at number 1 in the UK (ranked 100 in Australia). The suspicious old journo who lives under my left hearing aid whispered “urban myth” so I dug a little bit more.  The Spectator did the work for me, analysing the official statistics, saying that even when the variations in spelling are taken into account, Muhammad/ud/ed is still the single most popular boy’s name in England and Wales (though to be balanced, closely followed by Oliver, Jack and Harry). In Australia, Oliver tops the list of boys’ names. So, of course, In England and Wales, as in Australia, ‘Christian’ names far outnumber ‘Islamic’ ones.

No need to worry, Pauline and Fraser….

 

 

Don’t touch my dividends, Dude

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Photo: “How will we afford dog food without the franking credits from our dividends?” pixabay.com, CC Mike Flynn

There have been few occasions when dividends made it on to the front pages or lead item TV news. The first time was when Treasurer Paul Keating introduced the dividend imputation scheme in 1987, largely as a way of eliminating the double-taxing of company dividends. From that day, Australian investors were given franking credits on the dividends they received on their shares. This had the welcome effect of boosting the investment return for the investor or super fund.  It was just the sort of incentive needed to encourage Australians to prepare for their retirement and aim to become self-funded retirees.

Keating’s scheme did not, however, include the cash refund of the franking credit component of the dividend, which was introduced by John Howard and Peter Costello in 2001.

The second time dividend imputation was ‘trending’ was last week when Opposition Leader Bill Shorten said if Labor gets back into power he would scrap the current system. While emphasising Labor would keep dividend imputation, he said the plan was to scrap excess cash refunds on tax that was never paid in the first place,

The main targets are people with super fund balances of $1 million and more. There are plenty of those distributed among the large super fund managers but also around 30% of the self-managed fund sector are in that category.

In 2017, 1.12 million Australians were members of a self-managed super fund. There were almost 600,000 funds with assets totalling $696.7 billion. About 30% of SMSF assets are held in Australian shares, the ones that pay fully franked (tax-paid) dividends to investors.

What Mr Shorten’s plan appears to lack is a sliding scale which would exempt retirees whose fund balance is below a certain threshold or whose franking credit refunds are below the average ($5,000 a year).

A 2015 study which set out to debunk the myth that one needs a minimum $1 million to retire said that half of Australia’s workers approaching retirement have less than $100,000 in super. Three years hence, the proportionate numbers won’t have changed that much. The study by the Australian Institute of Superannuation Trustees (AIST) sets out to educate people that super is designed to work in tandem with the aged pension and that it’s OK to do that. Even a low super balance of $150,000 can nicely augment your pension.

Yet Bill Shorten says some funds are paying zero tax but picking up a $2.5 million refund cheque. At face value, that would seem to be a loophole worth closing. But at the other end of the scale are individual SMSF members with low fund balances who are undoubtedly already receiving a Centrelink part-pension. The shortfall caused by scrapping cash refunds on dividends will inevitably be recovered via a tweaking of government pension calculations on income and assets. Those who do not qualify for the pension will lose the lot.

Just how important a subject this is for retirees is shown in the Association of Superannuation Funds of Australia (ASFA) superannuation statistics: 1.427 million individuals received regular superannuation income in 2015-2016. Weekly payments averaged from $328 (term annuity), $496 (account-based) and $616 (defined benefit). Franking credit refunds on dividends from the ATO no doubt contributed to these payments.

Some industry super funds have come out in favour of Labor’s plan, but there is plenty of opposition, though so far there is no detail on which to base a counter argument.

ASFA says the proposal could have a significant impact on low-income retirees both inside and outside the superannuation system.

Chief executive Dr Martin Fahy said the system already has a $1.6 million cap in the retirement phase and reforms to superannuation and  retirement funding are working but they need time to bed down.

“If there is a concern about individuals with large retirement savings receiving the benefit of refundable imputation credits then this would be better addressed by measures more closely linked to retirement balance,” he said.

Currently, the Australian Taxation Office demands that if SMSF Trustees draw a Simple Pension, it must be a minimum 5% of assets (rising through increments to 14% for those aged 95 and over (!). For example, a fund with two members under the age of 80 and a balance of $450,000 must pay its members a minimum of $25,000 p.a. Providing their other assessable assets and/or income is under the threshold, they can also receive a part pension from Centrelink which could bump their annual income to around $45,000, (somewhere between a modest living and a comfortable retirement). The upside (for the country) in this fiscal strategy is that earnings will (hopefully) keep the members’ balances in the black for as long as possible. This in itself eases the burden on the aged pension system.

And if you need extra cash for a car, a bucket list trip to the Antarctic or to pay a ransom to a hacker, you can take a lump sum. If you’re Homeland’s Carrie Matheson, track down the troll, beat him up and demand he unlock the computer. (He just threw that in for light relief, Ed).

Policy on the run

You will forgive me for liberally quoting other sources on this thorny subject. The ALP has not published a policy paper or issued a media release. The only thing you will find is on Mr Shorten’s website, tucked away under the category: ‘Bill’s Opinion Pieces’.

I initially found Bill’s piece on a website run by the authority on all things super, Trish Power. Power, starting from the same position as all, except for Fairfax Media, which ‘has seen’ a policy draft, suggests it has all the hallmarks of ‘policy on the run’.

Trish Power’s website is a good place to visit if you want to avoid the scaremongering stories in the tabloids and current affairs TV. I bought a copy of her book “DIY Super for Dummies” and found it invaluable when starting our SMSF back in 2006. It may be overstating to say the promise of franking credit refunds was one of the attractions, but nonetheless it was.

Power and other guest writers are following this story while it remains a live issue so if you have a vested interest, here’s the link:

It does seem as if Bill Shorten is hanging his hat on this particular peg and plans to leave it there.

“When this (cash refund) first came in, it cost Australian taxpayers about $500 million a year,” he wrote. “Within the next few years, it’s going to cost $8 billion a year, more than the Commonwealth spends on public schools or childcare. It’s three times what we spend on the Australian Federal Police.”

You can see where he is shining his head torch when he writes that 50% of tax refunds go to SMSFs with balances of more than $2.4 million. Fine, stick it to the top end of town, but look further into this dodgy policy, Bill, and you will see that unless you giveretirees on modest incomes a break, they will be forced to rely more on the public purse. They will resent that and in turn resent you.

FOMM back pages: http://bobwords.com.au/super-end-week/

 

 

John Hewson and integrity in a post-truth world

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Photo of John Hewson – Crawford School of Public Policy

Nobody can call out an errant politician better than former Liberal Opposition Leader John Hewson. In the 22 years since he resigned from politics, Hewson has become a respected academic, the darling of TV panel shows like Q&A, and a regular on the celebrity speakers’ circuit. Yesterday, Hewson was a keynote speaker at Griffith University’s two-day summit, Integrity20.

Who better to address the opening topic “Post-Truth, Trust and the Ethics of Deceit?” Hewson has been speaking out about fake news and the propensity of politicians to stray from the facts, long before Donald Trump made it a catch phrase. He is also an advocate for evidence-based public policy, often identifying where politicians have used models and commissioned reports to suit their version of the facts.

So to Hewson’s opening address yesterday, where he used the climate change debate to support his argument for ‘evidence-based public policy’.

“We had a very hard-line position as a response to the climate challenge back in the early 1990s. I was calling for a 20% cut in emissions by the year 2000 off a 1990 base. We are yet to know how we are getting the 5% reduction in emissions by 2020 off a 2000 base. And of course, we’re committed under the Paris Accord to cut emissions by 26% to 28% by 2030.

“What’s happened over that period is drift – the issues have been left to drift. Housing affordability’s been left to drift, the climate response has been left to drift and the final line of that drift is the mess we have in the energy sector. Electricity and gas prices are running away to the point where the average household is struggling to afford to pay its power bills.

“These are the outcomes of negligent government over a very long period of time.”

Hewson believes the situation can be turned around, but it will take some years to reverse the damage. He said what the country needed was an honest debate about leadership.

“And leadership is going to be about telling people honestly the way it is. To get good policy up we have to educate people to accept the magnitude of the problem.

“But we don’t have any debate now in this country – it’s all negative. One side puts its hand up and says let’s do X and the other side immediately says no.”

One in three voted for someone else

He said people had lost faith in the two-party system. In the last election, one in three people did not vote for one of the major parties. The protest vote was not just something that had happened only in Australia, he added, citing Brexit, the US, France and Germany as recent examples.

“It’s a longer term trend and it will get worse before it gets better.”

The path to restoring voter confidence, he said, was by focusing on the issues that affect people – the cost of living, health, housing, childcare and education.

But the main problem was that the ‘wrong people’ were in government.

“If you asked them why they went into politics, they’d say to make a difference and leave a better world for their grandchildren.

“And then they do the opposite.’

Hewson, who will be 71 next Sunday, had a distinguished career in politics. He was leader of the Australian Liberal Party and Leader of the Opposition between 1990 and 1994. Before and after politics he has worked as a senior economist for organisations, including the Australian Treasury, the Reserve Bank and the International Monetary Fund.

In this context, it seems uncharitable to recall that in 1991 he advocated an unpopular goods and services tax. He lost the 1993 election to Paul Keating over the “Fightback Package”, of which GST was a central element. Ironically, Paul Keating (who first advocated a GST in 1985), shamelessly exploited public opinion to thwart Hewson.

All that aside, Hewson at least clearly outlined what he was going to do in 1991-93 and stuck to it. He is known still as a straight shooter, a man who once said he lived in hope of ‘spin-free politics’.

Day one of the Integrity20 Summit was not just about politics and truth. ABC presenter James O’Loghlin chaired a panel discussion about solving the world’s problems through innovation.

Inventor and futurist Mark Pesce showed a short video of a robot working on a farm in Indonesia. He described it as just two wheels, an axle and a smartphone on the end of what looks like a selfie stick, collecting data and producing crop reports. These robots cost about $2,500 and can be shared around a farming community. He also demonstrated how 3D printers, aligned with a simple robot used in smart phone technology, can reproduce all the plastic parts to build another 3D printer. Eventually, robots will also be able to assemble the printers – and that’s just the edges of the innovations universe.

CSIRO scientist Stefan Hajkowicz said the impact of Artificial Intelligence on the future of work had been greatly over-stated. He thought there were many areas where robots and humans would work side by side – in hospitals for example. The robot would do the blood test and the nurse would soothe the patient’s concerns.

But it turns out robots are crap at irregular tasks we humans take for granted, A robot cannot tie your shoelaces, for example. And, as Hajkowicz added, they can’t fold towels. They tried to get a robot to fold a towel. It took 20 minutes and did the job badly.

Today I attended the final full-day session of Integrity20, hastily scribbling notes and pressing stop/start on my hand-held recorder. You may wonder how I met my deadline – marvel at my prowess.

M.Y Prowess (sub-editor): “Isn’t it time I had a byline?”

BW: Ghost writers should be read and not heard – and try using commas instead of dashes – please – some of my readers find it tiresome.”

Next week: Bryan Dawe on satire, media censorship and the global rise of populism.