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Issue No. 126 | 01 March 2002 |
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I Don�t Like Sprouts
Interview: Clean Hands Corporate: Out of Asia Unions: Tears, Real And Crocodile, At The Ansett Wake Economics: Labour�s Capital: Individual Or Collective? History: Mardi Gras: The Biggest Labour Festival? International: Driving A Hard Bargain Review: In Bed With a Sub-Machine Gun Satire: Whitlam Forgives Kerr: "At Least He Didn't Dismiss A Rape Victim" Poetry: Dear Mother
The Soapbox The Locker Room Week in Review
 More on Harry BridgesWell Done, SplitterRepeating History
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Week in Review Gridlocked
****************** Decades ago Australian Governments had fingers in more pies than you could shake a stick at. Then, fired by the prescriptions of Milton Freidman, Roger Douglas, Margaret Thatcher et al, states went on starvation diets. As events this week show, public transport, is just one issue causing a re-think. Ansett Grounded, Qantas Shares Fly Workers and consumers are big losers as the Tesna Syndicate pulls the plug on dreams of an ongoing Ansett presence in Australian skies. Principles Solomon Lew and Lindsay Fox hint strongly that a lack of Federal Government support, heightened by its interest in maximising return from the sale of Sydney Airport, was the final bullet in their fuselage. Receivers and the ACTU are stunned by the millionaires' about-face. Three thousand jobs go down the gurgler and doubts hover over the likelihood of worker entitlements being met in full. Consumer spokespeople warn Qantas will gouge the market, raising questions over the wisdom of ever privatising a player that could use decades of public investment as a war chest to shaft competitors, and the public, on behalf of private shareholders. Maritime Jobs Shipped Off-shore Another Ship of Shame sails its sorry way into Port Melbourne. MUA officials invite media and pollies aboard to see first-hand the reality of exporting jobs to lines using flags of convenience. This particular example, the ANL Progress, had just escaped New Zealand where the ITF won an order preventing owners sacking three Filipino seamen who had complained over being cheated on wages, fed fish heads, and being stood over. ANL, of course, was owned by the Australian Government until being sold off soon after the Howard Government gained power. Maritime unions are seeking Industrial Relations Commission sanction for their campaign against further jobs being knocked down to the lowest bidder. They are trying to prevent owners of the CSL Yarra selling the ship to an off-shore subsidiary, a stroke used less than two years ago with the CSL Pacific, now back in Australian waters with a Bermudan flag and Ukranian crew. Since John Anderson became Transport Minister he has presided over a 350 percent increase in the number of foreign vessels permitted to work the Australian coast. Sydney Faces $20b Rail Price Tag Sydney commuters are pulled up short by news that only a $20 billion upgrade will save their city's rail system from "strangulation". There is immediate speculation that only Public-Private Partnerships will be able to foot the bill. Trouble is, a growing body of evidence suggests private enterprise will only become genuinely interested when workers and consumers are prepared to lie back and think of England. PPP takes many forms, from contracting out construction to handing over the whole shebang under contracts loaded in favour of new operators. State Government dabbling in this field has already seen motorists herded onto toll roads, courtesy of alternatives being closed, or tollbooths magically springing up on previously-constructed sections of freeway as demanded by the operator of the city's M4 western link. Generally, it seems, entrepreneurs in these ventures are prepared to dine out on cream but loathe to shoulder risk Sydney's airport link fits the profile. The conglomerate in charge, apparently surprised by the unwillingness of locals to fork out $10.60 for a one-way trip that would cost $2.60 on a publicly-owned section of the system, are talking legal action against the State Government, aka taxpayers. Civil War in UK Britain's Labour movement goes to war over Tony Blair's commitment to Public Private Partnerships. Blair labels opponents within the party "wreckers" and the largest union affiliate, Unison, withholds more than $2 million in subs. Blair's commitment is not derailed by serious problems in health, education and transport. As part of its justification, his Government argued public service over-runs averaged 12 percent per project. Then privately-owned Railtrack handed in a seven billion pound bill for redevelopment of the country's main west coast line for which it had budgeted three billion, rather shading the 12 percent problem. Railtrack has since gone belly-up leaving taxpayers with the shortfall. London Underground, split amongst several bidders, has been reduced to a shambles, provoking warnings on safety and compatability. Operators of the first 14 privately-financed hospitals under the scheme got their cash but delivered 33 percent fewer beds than agreed. Just this week, the Sydney Morning Herald reported that a 640km air corridor, between the UK and Denmark, had been closed on consecutive nights because Nats, the slimmed-down, privatised air traffic control system, couldn't cover illnesses. More Lib Fibs Remember former Health Minister Michael Wooldridge's assertion that prices would be held, "you might even see a slight fall", in the wake of his Government's lifetime healthcare bribe? Well, guess what? The election's gone and Government has given the nation's largest fund, Medicare Private, the thumbs-up for an average nine percent hike in levies. Some policy holders face jumps of 16 percent. The problem, according to Government and Medibank Private spokespeople, is that - wait for it - Australians make claims on their policies. The increases add $130 million to the multi-billion dollar public subsidy for private health insurance. Vics in Transport Bail-Out The Victorian Government announces its will bail-out privatised tram and bus operators to the tune of $100 million. Train and bus businesses were sold to predominantly British and French investors by the former Kennett Government less than three years ago under a model current Transport Minister, Peter Batchelor, described as "flawed". Victorian taxpayers will cough up a one-off $27 million payment; another $30-40 million over the life of the businesses, and make a $42 million settlement on $110 million in contractual claims lodged by the companies. Economic rationalism in crisis? Food for thought, at least.
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