Burnt Houses, Flameable Career: Garrett Holding On

As part of the kick to the economy last year when the Global Financial Crisis was at its most deadly, the Australian government introduced a series of spending programs. One was to offer free insulation to every Australian household, up to the value of $1,200. Overnight a cottage industry was born. Tradesmen raced to have their businesses certified so they could install insulation for free to households - then charge the Federal Government $1,200 per household.

Once again, the devil is in the details.

With the rush to get insulation and construction industry funds flowing, the program was introduced rapidly. There appears to have been insufficient training and little oversight. One tradesman suggested I factor the government’s $1,200 into the cost of our remodelled kitchen. He would get the grant for the full amount of the insulation even if we only were going to use one batt. No harm no foul? We didn’t go ahead with that tradesman!

Other than overcharging, the lack of training led to faulty installation. Pink batts were laid over halogen light fixtures - putting that house at risk of fire. Some houses got inferior quality insulation so the benefit is lost. Others had foil insulation stapled into place with metal staples. And as the young installers were not trained, some pierced electrical wires. Four people were killed. More were severely burned. An unknown number of houses have “live” attics or worse, especially if that “live” foil insulation comes into contact with water pipes. In that case the bathtub spigot could be an electrocution hazard.

Now that all these issues have come to light, there are calls in Parliament for the sacking of the Minister for the Environment, Peter Garrett.

Today Garrett is featured in a front page photo in The Australian. Is he in the crawl space of a home accompanying an inspector? Is he bedside with a burned installer? Is he in a cramped conference room working with industry leaders to solve the problems? Nope. Minister Garrett is alongside a stream looking at a small snake, as yesterday he launched an effort to monitor reptiles, snakes and maybe even bugs.

Yes, I am familiar with the excuse that it was a pre-booked event. And yes, somehow I understand that snakes are critical to the environment. And of course “business as usual” does need to proceed. But I am not the public.

What the public see is a Minister out in the bush - and out of touch. People have died and homes may be unsafe. And in comparison to that, the snakes don’t matter. Sorry. The Minister needs to demonstrate control of this “burning” issue or else we’ll demand government put someone in charge who will.

PS: The comments of the author are in no way meant to disrespect reptiles or snakes or any other “creepy crawlies,” as the Minister’s office described them.

Good news, Bad news: Economic growth & inflation

I’ve crowed repeatedly about Australia’s ability to dodge the global financial crisis (see Like Keanu, Australia Dodges Recession). Seems my roosters are coming home to roost.

Yesterday the S&P/ASX 200 index dropped. Why, with all this good news, would the stock market drop? Seems inflation is now on the rise – up to an annual rate of 3.4%. In its simplest terms, inflation measures the cost of goods and services. Notice your electric bill has gone up? What about water? Utilities are components of the inflation measurement. And while plasma televisions may have dropped overall it costs more and more to live in Australia. There are more of us willing to pay more for goods and services – so we’re in effect bidding up the prices. “Do I have $5.50 for this bunch of bananas?”

Next week The Reserve Bank meets, and as the inflation rate is above its guidelines we can expect the fourth rate hike in a year.

That’s right – it’s getting more expensive to live here so they’ll raise mortgage rates. That’ll stop you from bidding up those bananas!

Patriot or Hooligan? When does flag waving go too far?

Tomorrow is a public holiday in Australia. It’s our summer and the last week before school starts. Tomorrow is the “last gasp” of a wet, Claytons summer Down Under.

Tomorrow is Australia Day.

And in anticipation radio programs and politicians are talking about…immigration. Why is it patriotism can so easily be tipped over into xenophobia? Since when does flying the flag equate to borderline racism? One article in Queensland’s The Courier Mail recently centred on how the Australian flag was being commandeered by hooligans sporting Southern Cross tattoos.

Patriot or Hooligan? Hooligan?

Yet one of the great cricket sports stars recently revealed his full back tattoo of the Southern Cross. And his inspiration was patriotism. Peter Siddle’s tattoo is impressive. I grew up with World War II veterans in my family. None of them had tattoos however it would never have been considered unpatriotic for sporting the US flag on their arm.

USA TattooPatriot?

The concerns centre on people using their patriotism as rationale for disallowing change. Yet Australia was built by migrants. Other than the Aboriginal people, everyone else arrived by ship or plane. I am a new Australian and took up citizenship in 1995. I call Australia home and would never live elsewhere. Yet I believe it’s too good a country not to share. As we prosper we’ll need immigration to expand. And while I say this I’ll happily wave the flag.

As the film “Between the Flags” shows - it’s easy to get along, even if we have differences. The film answers the questions, “What if we threw a riot and no one came?”

“Indiana Wants Me”

If you do NOT live in Indiana and know the title of this blog is the name of a song then you’re 45 or older. More like 50. Face it – the mirror and the high school yearbook photo look like chalk and cheese. It’s sad getting old!

But if you are from Indiana then you probably hear this song blasted in the Brickyards or while cruising up from Louisville or over to Indianapolis.

And if you’re one of Jim Bright’s students at Indiana University, you can leave comments on the topics or questions you have for an “around the world – twice” public relations guy!

Watching the Election in a State We Can’t Spell

Australian media is full of stories on the special election underway now in New England. With the death of Senator Ted Kennedy his vacant seat is subject to a hotly-contested special election. The election also falls neatly on the first anniversary of Obama’s inauguration.

Yet this election is more than a seat-filling exercise. This has become a barometer on the first year of a change president. The area being contested has always been considered the left-leaning centre for America. Some pundits question – is it a leftist state, or was that defined by Kennedy – who was widely supported, election after election?

Going to the polls the Republican (or right-leaning) candidate has the edge. The Democratic candidate is said to have run a lack-lustre campaign. (Note to Washington: Help her, guys!)

So all the way down in Australia we’re keenly watching the election in Massachusseettss
Massachewsits
Massachoosetts Massachusetts. Perhaps after we’ll party in Woolloomooloo!

Australia as Regional Financial Centre

Today the export of financial services from Australia accounts for merely 3% of that sector’s overall contribution to the economy. Perhaps that strong reliance on domestic business helped shelter Australia’s finance sector from the worst of the Global Financial Crisis (GFC). In the world’s list of ten safest banks, four of them are in Australia. (Bizarrely enough we have a “four pillars” banking strategy and today have only four major banks.)

Yet compare us to London – one of the world’s leading finance centres. There the global rump of business contributes 50% of the sector’s contribution to the economy. Clearly Australia has room for growth.

Prior to the full impact of the GFC, the Ministry of Finance commissioned a report to examine Australia’s potential as a global financial centre. Also included was an examination of the regulatory framework that would be required. Are we headed the way of Lehman Brothers by unravelling our rules and regulations? Apparently not, according to Mark Johnson, former Macquarie Bank deputy chairman and architect of the report, “Australia As A Financial Centre.”

“We are not trying to build a financial system on steroids with artificial inducements,” Johnson said in today’s The Australian.

What we could expect was more banking competitiveness, an increase in financial products, and a boost to financial services jobs growth.

While it is some time before Sydney overtakes Hong Kong or Singapore as a financial centre the drive to boost our country’s importance can’t be a bad thing.

Boom! Boom! Boom! Australia’s Exports Grow 23%!

Good luck Prime Minister Rudd. He’s required to call an election this year and timing couldn’t be worse.

Jobs growth in the last quarter was higher than expected. And for the first time, seasonal workers weren’t the cause – December saw unusually high ad placements for permanent roles. The Reserve Bank already raised interest rates three times last year. They meet again in early February and everyone sees a rate rise as an eventuality.

Then today reports were printed of our exports. Hold on to your seat – nationally they rose 23% last year over the previous year. In minerals-rich Western Australia the growth was highest. Even Queensland racked up a 48.3% increase. The only decline was in South Australia which suffered due to a slump in automotive sales and wine consumption. (Beware in Adelaide of car salesmen out commiserating on cheap wine.)

At the same time the drop in new house starts over the last year means rental units are all but gone. Some suburbs report vacancy rates of 1.2%. Ask an out-of-home renter how easy it is to secure lodgings.

Amidst all this froth and bubble the government goes up for re-election.

But wait – don’t people normally vote with their wallets? If we’re doing good we figure keep the power in place, right? But what if we’re doing too good? What if mortgage rates are rising – and fuel, grocery, utility and other bills are also on the rise? What then?

It will be a tough campaign year for both parties. Each has to show they can strategically apply the brakes – while keeping the good news coming. We’re all for good news. Just don’t give us too much, okay?

OMG! Bro puts Sis’ TLF list on Facebook!

Funny story making the rounds on-line today.

Young man hides 12 beers in his room. His sister reports it to their parents so he’s grounded. Beware – payback is a bitch!

With all this time on his hands, brother rummages through his sister’s room and finds her “Dream Boy” list. Ten minutes later that is up on Facebook with tags to all the boys mentioned. Pretty soon all of sister’s dream boys see exactly what she thinks of them.

How did she go to school the next day? And how did the boys of “Twighlight” respond to be tagged?

Read the story here…

Dream Boys

Restructuring? Promote the Consumer Benefit – like Jetstar

Yesterday Jetstar announced a partnership with AirAsia that starts with joint-procurement agreements and extends to service agreements at shared airports. The deal centres on two similarly aligned organisations looking to reduce costs.

Yet by carefully crafting messages – and relating those to the company’s core values – Jetstar placed its consumers at the centre of this ho-hum corporate deal. To showcase the power of public relations, think through these two different headlines:

JetStar Alliance To Cut Cost (hypothetical)

Jetstar Deal Means Lower Asia Fares (The Australian – front page)

In the front page article, new partner AirAsia said round trip fares between Melbourne and Kuala Lumpur should drop $200 to $600 per person. The ability to demonstrate an immediate consumer benefit means a lot. Consumers will support restructuring, even some job losses, if they perceive an immediate benefit.

Frequently companies seek public relations counsel to manage restructuring announcements. They’ll develop announcements with euphemisms for job losses. Downsizing. Restructuring. Business Process Reengineering. And my favourite, “Rightsizing”.

Author Don Watson developed a handy reference tool for those seeking to understand dense corporate-speak. “Weasel Words” is a collection of “contemporary clichés, cant & management jargon.” There Watson offers this definition to “rightsizing” – Job Eliminations.

When developing messages to support a restructure, think to the end consumer. What’s the benefit? Quicker call times? Lower costs? Better products? If you place the consumer at the heart of your messages you’re transactions are going to be better received.

In Australia, A Shark Story

I never talk to my Mother about sharks. She’s highly sensitive to news flashes from Australia. If a surfer in Maroochydore gets bitten, I get a call. When anyone is “taken” (that’s Australian for killed by a shark), she’s got all the details. Last month I responded to her “surfer boy bitten” update by telling her I was more concerned about the giant shark somewhere near Sydney. Seems they pulled up a four metre (12 foot) Great White only to find a giant bite taken out of his side. Tourists were warned to stay out of the water for fear of a six metre (20 foot) beast. Now that’s a shark!

Peter Benchley once said he regretted writing “Jaws” because of the impact the film had on shark numbers. Man eats shark a lot more often than shark eats man. It’s the white fish inside many fish & chips servings. In Asia only the fins are culled for soup, whereas the shark is sent spiralling to the ocean floor to drown. Shark numbers are decreasing globally.

Here in Sydney our fresh waters still attract a fair number. In today’s The Sydney Morning Herald surfer Glenn Orgias describes how he mustered the strength to swim to shore – minus a hand. He recounts how fortunate he was to be attacked by a Great White (fussy eaters, they’ll spit out what they can’t swallow right away). A Bull Shark just attacks and attacks and attacks again. The Bull and the Tiger are the two species I fear (Tigers are deep water sharks hence their ferocity towards boat and plane wreck survivors).

When I first arrived in Australia I was so freaked out by my 1975 experience watching “Jaws” that I feared entering the water. SCUBA diving and marine life courses largely cured me. Even the advanced course on “Shark Behaviour” filled me with facts (”Why are they worried,” I say watching TV shows. “It’s just a white tipped reef shark and it’s not even displaying aggressive behaviour!”).

Today I have a great time at our beautiful beaches here in Sydney. (Surfer Orgias and his wife named their daughter after my favourite beach, Bronte.)

But when I go there, I never tell my Mother. There are too many sharks – it would freak her out!

« Previous entries · Next entries »