K-K-Keneally gets the snake eye

This ABC News piece is probably the kindest comment on NSW Premier Kristina K. Keneally's management style:

New South Wales Premier Kristina Keneally has defended her level of spending on privately chartered jets, entertainment and staff redundancies since taking the top job.

The Opposition has obtained documents detailing $4 million in spending within the Premier's office since December.

It includes $120,000 on flights around Australia, many of them privately chartered, as well as $1,200 on entertainment and $1.2 million on staff redundancies.

New South Wales Opposition Leader Barry O'Farrell says it is an exorbitant figure.

"Well it's not justified to take two chartered aircraft at a cost of $40,000 to Armidale when there are scheduled services to those areas," he said.

But Ms Keneally maintains the spending is justified, especially the travel spending.

"I make no apology whatsoever for getting out across the length and breadth of this state," she said.

She has rejected suggestions the spending was designed to boost her public profile.

While The Herald Sun added some meat to the tale:

"The figures show Ms Keneally has spent over $120,000 flying around Australia, including on privately chartered jets and helicopters. By contrast, Mr Rees spent about $80,000 on flights, including less than $70,000 for chartered planes.

Other expenses have included more than $100,000 in rent for private car-parking in the Sydney CBD, $32,000 on mobile phones and $222 on books.

There was also a $72.50 laundry bill for towels in Ms Keneally's personal bathroom in Governor Macquarie Tower.

Another $1200 was spent on "entertainment" - mainly food at restaurants and in-house catering.

The bill also includes a $1.2 million payout to around 26 staff made redundant after Ms Keneally took the top job.

The staff, who worked for Mr Rees, included senior Labor media advisers Tim Gleason and Aaron Ross, policy hound Davina Langton and Labor political strategist Graeme Wedderburn.

The Sunday Telegraph can reveal Mr Wedderburn's payout, estimated to be $160,000, triggered an investigation by the Auditor General's Office into ministerial payouts, and Government sources say the yet-to-be released report recommends future payouts be subject to greater tax."

By 2 June there was another hiccup for Ms. Keneally's hard-pressed PR team:

"NSW Premier Kristina Keneally has admitted she failed to declare free airline upgrades for her children during a trip to the US in 2008.
But Ms Keneally said she made no apology for failing to declare the upgrades, given by Qantas, saying the issue of free upgrades for politicians was a "grey area".

Photo from The Sydney Morning Herald

When a water spout becomes a tornado: spare a thought for Lennox Head on the NSW North Coast today

ABC News online:
Police say it is a miracle no-one was killed when a tornado smashed into the New South Wales north coast town of Lennox Head this morning.Twelve houses were destroyed and debris was sent flying when the storm, which one witness said hit "like a bomb", careered in off the sea about 7:30am.

Numerous caravans were also tipped over and an estimated 2,000 homes left without power.

The following images are from ABC News, The Sydney Morning Herald and Channel Nine News. All were apparently captured by local residents and holidaymakers on the spot. They deserve credit for keeping the 'new' in regional news and the 'current' in current affairs programs which mention the Northern Rivers area.

More tornado photographs courtesy of The Northern Star here.

Rio Tinto releases more RSPT spin and now I'm getting annoyed

Like many other observers of the political scene, I've been waiting on Rio Tinto releasing those figures it has been proclaiming would show that the proposed Resources Super Profits Tax was really the economic ogre the Coalition and mining industry said it was.

Well the media release is out and running across the mainstream media.
But the Rio Tinto wording is rather curious.......

"Corporate taxes amounted to A$14.6 billion and royalties were A$5.7 billion in the period 2000-2009. Rio Tinto's rate of taxation over the 10 years to 2009 averaged 35.6 per cent of its earnings before tax payments in Australia."

Huh? Rio Tinto Chief Executive Tom Albanese and friends are calculating the tax rate on the mining multinational's global business enterprise, not the rate it actually pays in Australia?
A global business that earned around US$50.53 billion between 1999 to 2008 according to Rio's own 2008 financial statement and, had a combined profit after tax in 2007 & 2008 of US$12.35 billion on combined earnings of US$37.48 (before interest, taxes, depreciation, amortisation -restated) for the same two years.

Interestingly, at the time of writing Advfin Australia lists Rio's effective tax rate for the last twelve months as 26.4 per cent.

When it comes to its Australian mining interests we are told that its tax direct tax obligations were A$20.3 billion between 2000-2009 (across its 19 operating mines and smelters etc.) and that Rio Tinto has generated net profit after tax of A$37.4 billion in Australia in the 10 years to 2009.

Hold on - didn't the company write off that A$5.7 billion in royalties as business costs?

After all, Under the Total Tax Contribution framework, petroleum resource rent tax is included as a tax whereas extraction royalties are not treated as a tax. (Refer "Survey for the Business Council of Australia and the Corporate Tax Association").

And didn't the 2007 Business Council of Australia survey also find that Taxes Collected are negative for the mining industry group because as major exporters survey participants reported a significant GST refund which more than offset other Taxes Collected?

I'm sorry Mr. Albanese, I just can't dredge up any sympathy for the mining giant you represent.
Try as I might I can find no justification for the average 35.6 per cent tax figure you complain about.

The bottom line is that I'm more inclined to believe the Federal Treasurer's estimation that; "In Australia, wholly-domestic mining companies paid an effective tax rate of only 17 per cent and multinational mining companies paid an effective tax rate of only 13 per cent".
Because these are somewhat similar percentages to those my own calculator spits out (without benefit of Shakelford and Markle).

Nor do I believe all the gloom and doom Rio Tinto predicts; with regard to this week's annual general meeting it was reported that "China's demand for iron ore, copper, coal and aluminium is expected to continue to grow over the next 15 years, after which time we expect to see increasing commodity demand from India," Mr du Plessis said. Mr Albanese said industrialisation, urbanisation and increased productivity would double demand for iron ore, aluminium and copper in that time.

In fact the longer Rio Tinto and the rest of the mining industry continue this tawdry exercise in spinning figures the more irritated I've become and, that irritation may inform my federal election vote later this year.

Australian Securities Exchange graph of Rio Tinto monthly share activity over ten years:

The true nature of Stephen Conroy?

"This week, I spent longer inside the mind of media minister Stephen Conroy than I would necessarily recommend.

The reason was as we've written in various posts his performance at the Senate Estimates Committee.

Reading the transcript has, I must admit, made me change my mind about him.

You see, when he was saying some of the more extreme stuff about his proposed internet filter over the last few months, I assumed it was just politics. I thought he was grandstanding on family values while of course knowing that it wouldn't fly.

But when you read his thoughts (you can find the 131 page transcript here if you like), it's enough to make you think again about him both as a person and as a minister.

(A slight declaration of interest at this point - unlike Rupert Murdoch, I've sat next to Conroy at dinner, within a few days of him being appointed. At that stage he seemed thoroughly affable, if more interested in talking about soccer than media policy.)

But the person who comes across in the transcript is a sneering, sarcastic grudge-bearing point scorer. And one who won't give a straight answer to a straight question, at that."

More from Tim Burrowes writing for MUmBRELLA here.

Stevo continued to cement his reputation as the federal pollie most loose-with-the truth (after el supremo o' teh lie Tony Abbott) when he was caught out by one Aussie ISP - "Don't claim we support filter, iiNet tells Conroy".

SMH online poll around 7am last Monday

By 6.30am on the second day 1st June 2010 the poll count was 85,271 - still running 99% against the Rudd-Conroy plan to censor the Australian Internet.

NSW North Coast enters its June-July 2010 flood season

Priority
NSW SEVERE WEATHER WARNING
Flash Flooding
For people in
Northern Rivers, Midnorth Coast, and eastern parts of the Northern Tablelands.

Issued at 5:00 pm on Wednesday 2 June 2010

Synoptic Situation: 3:00 pm EST Wednesday

FLASH FLOODING EXPECTED ABOUT PARTS OF NORTHEAST NEW SOUTH WALES TONIGHT AND THURSDAY.

A trough lying off the New South Wales north coast is expected to deepen tonight, leading to the development off a low pressure centre in the region during Thursday. Widespread showers and rain are expected over the northeast of the state during this time, with the chance of local thunderstorms. Later Thursday and on Friday the low is forecast to move slowly south, before moving away to the Tasman Sea on Saturday.

The very heavy rain is expected to cause flash flooding, with the area of coast and adjacent ranges between about Yamba and Kempsey likely to see the heaviest falls tonight and Thursday.

A Flood Watch has also been issued for the NSW North and Mid North Coast from Yamba to Taree.
Emergency services advise do not enter flood water. Stay well clear of creeks, storm drains and causeways.

For emergency help in floods and storms, ring the SES [NSW and ACT] on telephone number 132 500.

The next warning is due to be issued by 11 pm Wednesday.

This warning is also available through TV and Radio broadcasts; the Bureau's website at www.bom.gov.au or call 1300 659 218. The Bureau and State Emergency Service would appreciate this warning being broadcast regularly.

Updates at BOM Weather Warnings

Just when McDonald's felt it was safe to get back in the water the Yamba boycott shark begins to circle!

One Yamba resident went public with this statement during the week, in relation to the McDonald's Australia plan to impose itself on the small coastal town of Yamba at the mouth of the Clarence River:

McDonald's incorporate all competition products into their stores. Over time they have gone from only selling burgers to competing against Subway with salad wraps and salad items. Then came the attached coffee shop and now free wireless to ensure that everyone has a "one stop shop", ensuring customers don't go anywhere else.
This is not about fair competition. It is about takeover. They don't want you to spend your money anywhere else. This is a long time business practice of McDonald's. Over the years I've studied the way they "compete" with other businesses.
Any business Macca's can incorporate into theirs, they will - as they want the entire market, not to share it.

Now which persons of influence made these remarks afterwards?

• Maccas certainly do know what they're doing and they don't care. Unlike our Chamber who do care about the small businesses. I commend Tania and the Chamber for their efforts and of course all the individuals such as yourself who also worked so hard. I only hope that the community will live by their convictions and boycott McDonalds Yamba. [my emphasis]
  
• An awful decision. There were compelling reasons to listen to, and take heed of, overwhelming community opinion.

McDonald's and it designated licensee may find the waters distinctly chilly when they enter this town.

Meanwhile, The Daily Examiner letters to the editor continue to berate Clarence Valley Council and McDonald's fifteen days after shire councillors voted:

Time to vote
THE Clarence Valley Council has recently voted in favour of a development application from a certain American hamburger chain. This is apparently against the wishes of the vast majority of the citizens of Yamba, who did not want this development to go ahead.
Firstly, there is a certain group of pro-development councillors who will vote in favour of any development application - no matter how inappropriate (eg. West Yamba Canal Estate). This group is closely aligned with Liberal/National parties and people know who they are.
The solution to this problem is just the next council election away.
Secondly, all is not yet lost for the residents of Yamba with regard to this development. You still have economics on your side.
If the worthy citizens of Yamba do not patronise this hamburger outlet you can be assured of one fact. It will not stay open very long. [my emphasis]
MICHAEL CASEY, Grafton

More on Maccas
I FEEL sadness and shame at the fact that our councillors have decided to go against the will of the people who elect them. More than nine out of 10 people who bothered to express their opinion about the McDonald's development proposal at Yamba were against it, yet the majority of councillors decided to approve it.
I understand the legal and financial implications of the case put forward to us: there is no point in wasting our money in a lost battle. Well, isn't there? The law is certainly something to be considered, with respect and with no frivolity.
However, our civil laws, I believe, didn't drop from the sky together with the 10 commandments. I like to think of our law as the worthy result of those people before us that fought for the justice of what they believed and came up with our laws as something to serve us as guidance and inspiration. Their inheritance to us.
Exactly the right that this decision is taking away from us: to fight for justice. The beliefs of the past cannot be necessarily imposed on the beliefs of the present.
When needed, laws have been challenged, laws have been changed, and laws have been proved to be wrong.
What right do our councillors have to take away from us our right to challenge a law, to fight for our beliefs? How can money be a consideration in what clearly seems to be an ethical issue for many ratepayers? This is precisely the kind of issue where I want my rates money that is paid to these councillors to be spent.
This is the kind of fight that makes me feel a worthy individual. This is where I don't want to give up. This easy surrender by our representatives is suppressing and depressing for our community at large (for nine out of 10 people).
Our councillors have decided that this is a lost battle from the point of view of the laws of the past denying us the right to fight a new battle to create the laws of the future. To them I say, even if a battle was going to be totally lost, even if an expectation was going to end in disappointment, our community, our men and women, the people you are there to serve, might prefer 1000 times just to be there, fighting and losing, holding their heads up with pride, rather than simply giving up. And if that costs us money, so be it.
Otherwise, why on earth do we bother to celebrate Gallipoli or to send our national soccer team to a World Cup final?
SANTIAGO ACERA, Lawrence

Highway an option
WHEN you look at the amount of accidents on the roads you really have to wonder at the Upper River and Lower River mentality - the one that we were assured would not exist - that has exhibited itself in the decision to approve McDonald's in Yamba. Not only is it detrimental to the ambience of the village and its tourist population from the cities, and to the local boutique businesses that give this town its special flavour. Byron Bay recognised this when it said "no" to drive-through restaurants.
But also, how short-sighted. McDonald's could be situated on the highway where it would provide a valuable rest point for motorists and give Maccas a better flow of people, and they would be able to offer 24-hour service. Families and groups travel the highway and a Maccas either north or south of the Clarence River would be able to service the highway travellers and both towns of Maclean and Yamba.
A Maccas on the highway would offer a well-lit, safe and fully staffed environment with food and facilities that would appeal to many people and encourage them to break their journey for a rest.
We know the long stretches of highways on the North Coast have a constant flow of traffic and have been identified as areas of major accidents. We need to have a 24-hour highway rest break here on the highway between Ballina and Grafton. This would also provide work opportunities for youth in the outer lying areas as well as those in the towns of Maclean and Yamba.
To the people at McDonald's, you have the opportunity not only to do the right thing, but also to take a more financially viable solution. Yamba simply does not have the static population in non-holiday times to support your business and the businesses that already service our town.
To our council and councillors, who are paid/elected to work on behalf of residents, what were you thinking? This matter needs to go back to council and a sensible decision taken, one that is better commercially for Maccas, better for the wider community, and shows that Maccas appreciates the real need that they could fulfil.
Councillors, you do have a responsibility to look after your residents and current business owners in Yamba who have stated their position quite clearly.
Now it is your turn to do something for everyone. Go back to Maccas with a solution to this divisive and damaging situation.
CATE CAPP, Yamba.