"We believe that the grave emotional instability indicated by Mr. Trump's speech and actions makes him incapable of serving safely as president"

Letter to the Editor, The New York Times, 13 February 2017:

To the Editor:

Charles M. Blow (column, nytimes.com, Feb. 9) describes Donald Trump’s constant need “to grind the opposition underfoot.” As mental health professionals, we share Mr. Blow’s concern.

Silence from the country’s mental health organizations has been due to a self-imposed dictum about evaluating public figures (the American Psychiatric Association’s 1973 Goldwater Rule). But this silence has resulted in a failure to lend our expertise to worried journalists and members of Congress at this critical time. We fear that too much is at stake to be silent any longer.

Mr. Trump’s speech and actions demonstrate an inability to tolerate views different from his own, leading to rage reactions. His words and behavior suggest a profound inability to empathize. Individuals with these traits distort reality to suit their psychological state, attacking facts and those who convey them (journalists, scientists).

In a powerful leader, these attacks are likely to increase, as his personal myth of greatness appears to be confirmed. We believe that the grave emotional instability indicated by Mr. Trump’s speech and actions makes him incapable of serving safely as president.

LANCE DODES

JOSEPH SCHACHTER

Beverly Hills, Calif.

Dr. Dodes is a retired assistant clinical professor of psychiatry at Harvard Medical School. Dr. Schachter is a former chairman of the Committee on Research Proposals, International Psychoanalytic Association. The letter was also signed by 33 other psychiatrists, psychologists and social workers.

Full signature list:

Lance Dodes, M.D.

Joseph Schachter, M.D., Ph.D.

Susan Radant, Ph.D.

Judith Schachter, M.D.

Jules Kerman, M.D., Ph.D

Jeffrey Seitelman, M.D., Ph.D.

Henry Friedman, M.D.

Babak Roshanaei-Moghaddam, MD

David Cooper, Ph.D.

Dena Sorbo, LCSW, BCD

Joseph Reppen, Ph.D.

Ernest Wallwork, Ph.D.

Judith E. Vida, M.D.

Richard Reichbart, J.D., Ph.D.

Joseph Abrahams, M.D.

Leslie Schweitzer-Miller, M.D.

Cheryl Y. Goodrich, Ph.D.

Lourdes Henares-Levy, M.D.

Alexandra Rolde, M.D.

Dr. med. Helen Schoenhals Hart

Eva D. Papiasvili, Ph.D.

Mali Mann, M.D.

Phyllis Tyson, Ph.D.

Era A. Loewenstein, Ph.D.

Marianna Adler, Ph.D.

Henry Nunberg, M.D.

Marc R. Hirsch, Ph.D.

Lora Heims Tessman, Ph.D.

Monisha Nayar-Akhtar, Ph.D.

Victoria Schreiber, M.A., L.M.S.W.

Penny M Freedman, Ph.D.

Merton A. Shill, JD. LLM., PhD.

Helen K. Gediman, Ph.D.

Michael P. Kowitt, Ph.D. 

Leonard Glass, M.D.

"Blinky Bill" visits a couple of Iluka residents in February 2017

Delightful video and photograph of a koala in Spenser Street, Iluka NSW, by Lisa Shaw from the Green Room café at Iluka.

Ken Nicholl from Iluka Landcare transferred this little koala to a koala food tree next door.

An Iluka resident tells me that this koala was approximately 1km from the proposed subdivision of Lot 99 Hickey Street, Iluka, a parcel of land which also reportedly contains koala food trees.

Coal and Climate Change protests in the Northern Rivers

Echo NetDaily, 20 February 2017:

‘Building the biggest coal mine on earth is, at this point in human history, the dumbest idea on earth,’ said Bill McKibben, co-founder of 350.org.

Adani Carmichael Coal mine is still looking for major investors to get off the ground and Westpac Bank is a possible investor.  Lismore Environment Centre is rallying the community together this morning at 10am outside the Westpac Bank, Molesworth Street, Lismore to highlight opposition to funding of the mine.

‘Twelve investment banks including Citigroup, Goldman Sachs and HSBC have ruled out investing in Adani. The other three major banks in Australia have been backing away from it, but not Westpac. Westpac’s approval could throw open the doors for investors sitting on the sidelines. We want to show Westpac this is not a good decision for them to make,’ said George Pick from the Lismore Environment Centre.

‘This project is one of the single biggest threats in the entire world to our climate. The Queensland and federal governments are pulling out all the stops to facilitate the Adani Carmichael coal mine in the Galilee Basin even though it’s economically unviable. Westpac needs to realise that investing in this mine will hurt their brand. Our community cares about climate change and investing in Adani will be a big mistake.’ he said.

Taking 12 billion litres of water a year the project will dewater two local springs that are Great Artesian Basin recharge springs, and will mine through the Carmichael river.

‘In Queensland, new water laws passed last year which mean that whilst Adani has to apply for a water licence local communities have no right to object to any licences that are granted,’ said Lismore City councillor Elly Bird, who will be speaking at the event.

The Daily Examiner, 21 February 2017, p.8:

Following backlash from his somewhat wooden 'ask the PM' video, a tough week was topped off for MP Luke Hartsuyker when a number of residents rallied outside his office for action on climate change.

With residents bringing a dummy with a print-out face, a makeshift Hartsuyker sat idly on a blow-up beach chair among the protesters.

Dressed for the beach and equipped with water pistols and floatation devices, the Coffs Coast Climate Action Group called for government action on climate change.

"We're here today to join the dots for My Hartsuyker - to beat the heat, we must leave coal in the ground and urgently transition to 100% renewable energy," said Liisa Rusanen, a member of the group.

"This summer we've had record-breaking heatwaves in many parts of the country. Unprecedented hot spells are taking their toll on the elderly and children, droughts in some areas are impacting food production, while others are battling bushfire.

"This is what climate scientists have been warning us about for decades, yet our politicians are playing with coal and putting our future at risk."

The group delivered a petition to the office of over 300 signatures, calling on the federal government to "declare a climate emergency and initiate a society-wide mobilisation to stop climate change".

Mr Hartsuyker, however, was not present at his office during the protest.

Quotes of the Week

“Our opponents, the media and the whole world will soon see as we begin to take further actions, that the powers of the president to protect our country are very substantial and will not be questioned.” [Senior White House adviser on immigration issues, Stephen Miller, quoted in The Guardian, 13 February 2017]

(gasps)

FORD: That’s a White House advisor, right?

BRZEZINSKI: Oh my God. That’s not even funny. You can’t even —

SCARBOROUGH: Oh my God. It’s so much worse than I ever thought.

BRZEZINSKI: It’s much worse. It’s much worse.

SCARBOROUGH: Wow.

[Excerpt from transcript of MSNBC Morning Joe broadcast as quoted in Shareblue, 13 February 2017]

I still have trouble seeing how the Trump administration survives a full term. Judging by his Thursday press conference, President Trump’s mental state is like a train that long ago left freewheeling and iconoclastic, has raced through indulgent, chaotic and unnerving, and is now careening past unhinged, unmoored and unglued. [Journalist and political commentator David Brooks writing in The New York Times, 17 February 2017]

Will cuts to Sunday penalty rates become a textbook example of unintended consequences?

ABC News, 23 February 2017:

Let's start by calling a spade a spade. Sunday penalty rates have been cut by the Fair Work Commission. Not "equalised" or "brought in line" with Saturday rates. Cut.

Business, big and small, has been seeking this cut for years, saying Sunday penalties are a legacy of a bygone era where families went to church — one that's costing them a tidy sum.

They also argue it's a legacy that's been costing jobs, with many employers choosing not to open on Sundays, or to maintain just a skeleton staff (although ask yourself, just how many retailers, restaurants, cafes and bars are actually shut on Sunday?).

But the cuts to Sunday penalty rates could become a textbook example of unintended consequences, where a move supposed to increase employment instead hurts the economy and increases business failures and job losses.

Why? Because the hundreds of thousands of retail and hospitality workers affected by this decision are also customers.

What do you think happens when you cut someone's pay packet by as much as 25 per cent for their Sunday shifts?

(For a typical permanent retail worker on the award who always works Sunday shifts this will cut their annual pay by about $3,500).

They either have to work more, or they have to cut their spending to match their new, lower wage.

Given that unemployment is stubbornly high at 5.7 per cent, and underemployment is near record levels, it seems unlikely they'll actually be able to get more work to make up the lost pay — and, remember, these staff already work Sundays, so it's not like they'll benefit from any increase in jobs on that day.

According to the Australia Bureau of Statistics (ABS) an est. 850,300 people were employed in the accommodation and food industry sector in November 2016 as their main job and another est. 1.25 million people have their main job in the retail sector [ABS 6291.0.55.003 - Labour Force, Australia, Detailed, Quarterly, Nov 2016].

An est. 54.7 percent of female employees in the accommodation/food industry work part-time and an est. 45.3 per cent males do likewise. While in retail an est. 54.6 per cent of females and 45.3 per cent of males work part-time.

In accommodation/food businesses part time employees work for an average of 16.1 hours while in the retail trade part-time employees work for an average of 16.7 hours.

Underemployment appears to be highest in the food and hospitality sector, third highest in the retail sector and females highest in both sectors. [Workplace Gender Equality Agency, Gender composition of the workforce: by industry, April 2016]

Females with only one job were more likely to work on weekends - 73% compared to 68% for males.

These statistics tend to confirm that “hundreds of thousands” of single person and family households will be hit by cuts to Sunday penalty rates as set out in the Fair Work Commission’s 4 yearly review of modern awards – Penalty Rates Decision covering Hospitality, Fast Food, Retail and Pharmacy Awards and, I have no doubt that their loss of income will affect local economies to a significant degree.

The reductions in Sunday penalty rates we have determined are set out below:

Award Sunday Penalty Rate

Hospitality Award full-time and part-time employees: (no change for casuals) 175 per cent -> 150 per cent

Fast Food Award (Level 1 employees only)

Full-time and part-time employees: 150 per cent ->125 per cent

Casual employees: 175 per cent ->150 per cent

Retail Award Full-time and part-time employees: 200 per cent ->150 per cent

Casual employees: 200 per cent ->175 per cent

Pharmacy Award

(7.00 am – 9.00 pm only)

Full-time and part-time employees: 200 per cent ->150 per cent

Casual employees: 200 per cent ->175 per cent

Local and regional economies on the NSW North Coast - where often low levels of employment opportunity combined with the fact that few hospitality/food outlets in tourism-orientated towns and none of the big retail stores currently close on a Sunday anyway - suggest that this wages cut will be nothing more than a straight forward cost saving for local businesses, with no or very little additional full-time, part-time or casual employment eventuating.

That a backlash to the Fair Work Commission decision appears inevitable is indicated by this online poll active on the day the decision was published:

http://www.smh.com.au/business/workplace-relations/penalty-rate-cuts-who-gains-and-who-will-be-hit-the-hardest-20170222-guj8bv.html

Narrabri Shire Council caught red handed

Clarence Valley readers might remember Narrabri Shire Council as one of those NSW local governments pushing to dam and divert the Clarence River and interested in creating a Yamba mega port.

Now they have apparently been caught red handed attempting to stack an online survey in favour of coal seam gas mining in the Pilliga area:

via @PilligaPush

UPDATE

The Northern Daily Leader, 2 March 2017:

Narrabri Shire Council will be forced to hire an independent reviewer, after both its general manager and mayor received code of conduct complaints for the same incident.

The complaints arose following an email sent out to all council staff, asking them to vote in a poll about coal seam gas in Narrabri.

Questions have been raised about who directed the email to be sent to staff, which council has so far ignored.

The Leader understands two councillors made a complaint against general manager Stewart Todd, after seeking advice from the NSW Office of Local Government, who informed them they were obligated to make a complaint if they believed the code of conduct had been breached.

Narrabri Ratepayers Association also made a code of conduct complaint against mayor Catherine Redding.

Normally when a code of conduct complaint is made against the general manager, the mayor would handle the complaint, and vice versa.

However, given both complaints relate to the same issue, the matter will be referred to an external independent conduct reviewer. 

Narrabri Shire Council refused to answer The Leader’s questions because of the confidential nature of the matter.

Office of Local Government documents indicate information that identifies the complainants is not to be disclosed, however, that “does not apply to code of conduct complaints made by councillors about other councillors or the general manager”.

The email in question was sent out to all council staff on February 9, implying employees should stack an online survey which asked “Do you want CSG in Narrabri?”

Company tax rate cuts in Australia and the banks that benefit

There has been some finger pointing in mainstream and social media of late over Labor’s use of $7.4 million as the amount banks would be able to retain under the Turnbull Government’s progressive cuts to the company tax rate included in the 2016-17 Budget.

According to the Australian Tax Office on 3 January 2016:

The government announced a reduction in the small business tax rate from 28.5 per cent to 27.5 per cent for the 2016–17 income year. The turnover threshold to qualify for the lower rate will start at $10 million and progressively rise until the 27.5 per cent rate applies to all corporate tax entities subject to the general company tax rate in the 2023–24 income year.

The corporate tax rate will then be cut to 27 per cent for the 2024–25 income year and by one percentage point in each subsequent year until it reaches 25 per cent for the 2026–27 income year.

Full report: Company tax cuts What the evidence shows

ABC News reported in May 2016 that Treasury Secretary John Fraser told Senate Estimates: The cost of these measures to 2026-27 is $48.2 billion in cash terms.

In the first four years it is estimated that these tax cuts will cost the Treasury bottom line an est. $5.3 billion.

So where did the $7.4 billion for banks come from?

Australia is thought to have four big banks – the National Australia Bank (NAB), Commonwealth Bank (CBA), Australia and New Zealand Banking Group (ANZ) and Westpac (WBA) and it appears that this amount is based on projections done with regards to these banks by think tank, The Australia Institute.

The Australia Institute, media release 2016:

Big 4 banks $7.4 billion budget gift

The Coalition Government’s business tax plan would deliver $7.4B to the big 4 banks.

“Cutting company tax rates delivers a massive windfall to an already highly profitable banking sector,” Executive Director Australia Institute, Ben Oquist said.

“It makes no economic or budget sense to deliver the big 4 banks a multi-billion dollar tax break when Australia already has a revenue problem.

“If your agenda is jobs and growth, targeted industry assistance would deliver a much greater return on investment,” Oquist said.

The value of company tax provisions was derived from 2015 full year annual reports for the big four banks. That figure summed to $11,123 million. That figure was projected forward to 2026-27 to give the no change scenario.

The projection assumed bank profit and hence tax payable would increase in line with nominal GDP. The nominal GDP projections used the figures in the 2016-17 budget papers which give nominal increases of:

2.5 per cent in 2015-16,

4.25 per cent in 2016-17, and

5 per cent in 2017-18 and subsequent years.

Company tax cuts do not affect the big banks until 2024-25 when the current 30 per cent rate will fall to 27 per cent for all companies with further reductions of one per cent per annum until they reach 25 per cent in 2026-27.

The results of this are presented in the following table:

Table 1. Benefit of company tax cuts for big four banks, $million

	2024-25	2025-26	2026-27	Total
Savings on company tax	1,756	2,458	3,227	7,441

KPMG stated in Major Banks: Full Year Results 2015 that the Australian major banks reported another record earnings result in 2015 - a combined cash profit after tax of $30 billion.

By year’s end 2016 the major banks were reporting a combined cash profit after tax of $29.6 billion.

The Federal Government’s underlying cash balance for the 2016-17 financial year to 31 December 2016 was a deficit of $33,025 million and the fiscal balance was a deficit of $31,143 million. While net government debt for 2016-17 stood at an est. $326 billion.

In Major Banks: Full Year Results 2016 KPMG observed:

There is an increasing global perception that banks put shareholders’ and executives’ interests ahead of their customers and the community. This perception is more real for banks than for other corporates as they are seen to rely not only on compliance with strict regulation, but increasingly on the goodwill of the community and government to continue to operate in their current form.

We are seeing heightened scrutiny of Australian banks, including through the recent Standing Committee on Economics (the Committee) inquiry, becoming a regular feature of media and political commentary, notwithstanding eight separate inquiries since 2009. There are many reasons for this increased level of oversight, with terms such as “trust deficit” and “trust gap” often cited as the root cause.

It has been argued that the financial services industry has lost touch with the core proposition customers are seeking by forgetting its real purpose in society and becoming too inwardly focussed. These themes were repeated in testimony to the Committee.

Readers can make their own minds up as to whether banks have lived up to the historic social licence granted them by community (see bank scandals since 2009 and alleged superannuation owing in 2017) and, if they actually need any further tax relief or if that $7.4 billion would be much better in the hands of the Commonwealth Treasury.