August 2012

Hurting the community

by Richard Denniss in The Canberra Times

No rational person would work in the community sector. Not according to neoclassical economists at least. Rational individuals, we are told, are motivated by their own self-interest. So why would anyone ever volunteer to help people they don’t know? And why would an organisation structure itself as a ”not-for-profit” when economists typically assume that profit

July 2012

What we don’t know can hinder us

by Richard Denniss in The Australian Financial Review

The federal government spent $374 billion last year providing services to its citizens, but it’s amazing what the government doesn’t know about those citizens. It is only every five years that we accurately measure the population through the census, and it’s only every six years that we get an accurate indication of what households spend

Why pick green power under new pricing model?

by Matt Grudnoff in The Canberra Times

You would think that, with the introduction of a carbon price, the gap between the cost of coal-fired electricity and the cost of renewable energy would close, but, at least if you are an ActewAGL customer, you would be wrong. Surprisingly, despite not facing a carbon bill for the production of green power, the price

KPIs’ have little relevance in managing our health system

‘KPIs’ have little relevance in managing our health system. There is an old saying that for every complex problem there is a solution that is simple, neat and wrong. The modern delusion that the creation of simple “key performance indicators” can solve complex problems like the management of the health system, the performance of our

June 2012

Politics in the Pub Wednesday 27 June 2012 -Father Frank Brennan AO -Asylum seeker policy 20 years on

by Father Frank Brennan AO

2012 marks 20 years since the policy of mandatory detention of asylum seekers was introduced by the Keating Government. Today, more than 4000 asylum seekers are being held in immigration detention, 460 of those are children. A recent parliamentary inquiry report into immigration detention, has called for sweeping changes, including recommendations on detention time limits,

Newman is digging in wrong hole

by Matt Grudnoff in The Courier-Mail

In his televised address, Premier Campbell Newman warned Queenslanders that spending cuts were needed to rein in debt. This follows his announcement that the state cannot afford to pay 20,000 public-sector workers. But how can this be when Queensland is the second most resource-rich state in the middle of the biggest mining boom in Australia’s

Politicians rarely know best

by Richard Denniss in The Australian Financial Review

The latest tragic loss of lives as asylum seekers literally risk everything to make a better life for their families highlights both the consequences and the absurdity of some of the policy positions adopted by Australian politicians. Politics, like democracy, often has more to do with compromise than with consistency. But building a nation does

The budget conundrum

by Richard Denniss in The Canberra Times

As our population continues to grow rapidly, the government is faced with choices is doesn’t like to make. According to the latest census, Canberra’s population has grown by 9.9 per cent (compared to 7.9 per cent nationally) in the past five years – a growth, which among other things, places incredible pressure on the ACT

Bosses flunk training 101

by Richard Denniss in The Australian Financial Review

The business community has spent 20 years pushing tirelessly for labour market flexibility but, now that it has it, some have figured out that it is a double-edged sword. In a flexible labour market, wages for skilled workers in high demand can rise really quickly. Who knew! Last week the Business Council of Australia (BCA)

May 2012

Debt is not the villain

by Richard Denniss in The Australian Financial Review

The idea that the Coalition would oppose an increase in the Commonwealth’s debt ceiling makes about as much economic sense as its hostility to a market-based mechanism to address climate change. But, as with most of Tony Abbott’s big calls, it clearly makes good short-term political sense. In an age of slogans it is much

A tax on the developers

by Richard Denniss in The Canberra Times

It is the perceived value of a location, not the cost of construction, that determines the market price for housing. It’s amazing how progressive business has become in Australia. The mining industry’s biggest concern seems to be creating jobs for migrants. The banks just want to help small business grow and the property developers of

Environment Protection and Biodiversity Act -The green tape slugfest that is the EPBC Act

by Richard Denniss and Andrew Macintosh in Crikey

Nothing gets interest groups more riled up than a proposal to reduce some regulation or, as business groups like to call the federal Environment Protection and Biodiversity Act (EPBC act), “green tape”. In the green corner, we have the major environment groups arguing that such reductions signal further retreat by government in the face of

Self-serving regulation

by Richard Denniss in The Australian Financial Review

The economics of deregulation is supposed to be straightforward: business groups support it, community groups oppose it, and governments “get the balance right”. The recent push to streamline state and federal environmental and planning laws has followed exactly that script. The push to remove so-called “green tape” has the appearance of a philosophical position based

How much tax is enough?

by Richard Denniss in The Canberra Times

While it is impolite to say so these days, Canberrans don’t pay much tax. While this week’s Commonwealth budget as well as the ACT’s review of the territory’s tax system back up this conclusion, it is unlikely to have much impact on the calls for lower taxes to take the pressure off the cost of

End of the price gouging

by Richard Denniss in The Australian Financial Review

The standard excuse for why Australians pay far higher prices than Americans for clothes, consumer goods and cars is to highlight the high transport costs associated with the tyranny of distance. So what is their excuse for more expensive music and software downloads? Dearer data costs due to longer cables? You might assume that because

April 2012

Put pressure on big banks

by Richard Denniss in The Canberra Times

Wouldn’t it be nice to decide how much you were worth? And wouldn’t it be even better to be able to force people to give you the money you think you deserve? Of course it would, but then again, we can’t all behave like the big four banks. In most industries when customers buy less

The government’s clean energy bank and the Abbott-proof fence

by Andrew Macintosh and Richard Denniss in Crikey

The government announcement on Tuesday that it accepts all of the recommendations of the Broadbent inquiry into the Clean Energy Finance Corporation (CEFC) is a high-water mark in the politics of perception. The commitment to spend $10 billion on renewable energy and energy efficiency helps convince the public that the government takes climate change seriously.

What electricity will really cost under a carbon tax

by Richard Denniss and Andrew Macintosh in Crikey

Late last week the ACT electricity price regulator released its draft electricity pricing decision for 2012-13. And the political response couldn’t have been more predictable. The Coalition raced to highlight that, out of an estimated $244 increase in annual household electricity bills, almost $190 was attributable to the carbon price. Labor and the Greens downplayed

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