John Menadue

  • New leadership on Asylum seekers

    Yesterday, Crikey published an article by Arja Keski-Nummi and me on the opportunities for the new Minister for Immigration to break the impasse on asylum seekers. You can find it at my website publish.pearlsandirritations.com.

  • Can the media spell ‘policy’?

    A friend of mine, Ian McAuley, has drawn attention to an election study by the ANU’s Institute for Public Policy Trends. It covers elections 1987-2010.

    The study shows conclusively that our media is badly out of touch with what the public wants. For the 2010 federal election campaign, the study asked voters what were the most important considerations in their voting decision. 52% said ‘policy issues’. 25% said ‘parties as a whole’. 15% said ‘party leaders’. 8% said ‘candidates in my electorate’.

    The media and particularly the Canberra Press Gallery keep pushing personalities, leaders and politics when clearly the public wants to hear about policy.

    Policy is harder to understand and explain. It is so much easier for the media to serve us up a diet of politicians and politics.

    I would have hoped that the ABC would do better, but watching or listening to its flagship programs on TV and radio, I get the same diet.  At the moment it is leadership, leadership, leadership.  I turn off more and more.

    We will have a new government after September. We also badly need a new Canberra Press Gallery that can at least spell the word ‘policy’ even if it cannot explain what it means!

    John Menadue

  • Cricket – Junk food and BUPA

    I used to be a grafted-on cricket watcher. But I am being weaned off. One reason is that there is so much cricket on TV that the quality suffers.

    I mostly turn off the audio and although the camera work is superb, I can’t turn off the unhealthy diet of fast-food and beer advertisements that Channel 9 and Foxtel overwhelm me with from first ball to stumps. I thought sport had something to do with encouraging healthy lifestyles. But the endless Kentucky Fried Chicken, Macdonalds, Pizza Hut and Victorian Bitter advertisements do just the reverse.

    But my real irritation is with the BUPA ads that give me pointless information about the heart rate of players and the nonsensical suggestion that by spending money with BUPA I will  be a ‘healthier you’. Advertising by BUPA is subsidised by the Australian taxpayer. The $3.5 billion p.a. tax subsidy that the private health funds receive goes, in theory, to policy holders, but in practice to funds like BUPA. Without that taxpayer subsidy very few would buy BUPA’s products.

    BUPA boasts that it has about a 30% market share of private health insurance. With the industry subsidy totalling $3.5 billion p.a., that represents a subsidy by taxpayers of over $1 billion p.a. for BUPA.

    Like other wasteful private health funds, BUPA pretends that it offers choice, but it sells practically identical products – choice without variety. One reason why we have a relatively good and low cost health scheme is that Medicare is a strong single payer. Private health insurance has  crippled efficient and equitable healthcare in the US because private funds like BUPA do not have the power or willingness to control costs. Advertising campaigns like BUPA’s take us further down the disastrous  US path.

    BUPA  and other health insurance funds floated  ‘Medicare Select’  to the Rudd Government. This  would have encouraged  many people to opt out of Medicare. It would have been goodnight to Medicare. Companies like BUPA favour the wealthiest, they increase the usage of health services, they undermine Medicare’s ability to control costs and quality and their administrative costs are three times those of Medicare. They have not taken pressure off public hospitals. ‘Gap insurance’ provided by companies like BUPA has triggered the largest increase in specialist fees in a quarter of a century.

    As taxpayers and citizens, we should be aware of  the damage that companies like BUPA are wreaking on health services in Australia. Why should taxpayers money be used not only to disrupt my enjoyment of cricket on TV, but also to cause so much damage to health services in this country.

    Together with Ian McAuley I have written many articles on this subject. See www.johnmendue.com and click on ‘health’.

    John Menadue

  • Handle with Care. Guest blogger: Greg from Cottesloe

     
    When I was a kid, the pictures on Saturday afternoons were a highlight of the week. Before the main feature, the cartoons and even the Pathe newsreel would come one of the top favourites, a government warning on the danger of keeping unexploded ammunition in homes. Mortar bombs often featured; unlike bullets and other aimed projectiles, they don’t miss and they wound anyone that’s exposed. These films had names like Not Worth Dying for and started with a picture of a mortar bomb on the mantelpiece, went to pipe smoking Dad accidentally knocking it over, the house going up with a roar, just the thing to put kids in the right frame of mind for the next episode of Gunsmoke.
    Germain Greer has long been an icon on the mantelpiece of the Left and of Feminism but they might need to have a look at those old government films. Her article in last weekend’s AFR tackles Australia’s alleged love of plain speaking and inflicts casualties on all sides. Greer is non denominational; everyone gets a serve regardless of gender, age, education, ethnicity, etc. And this on the One Day of the Year set aside for mass smugness and feeling mightily pleased that we are not anyone else.
    But it’s when we go dipping into the Rozella biscuit tin of history looking for precedents of our general fabulousness that we come up against some problems. Australians seem to have been more collectivist, more taciturn and instinctively aware of the limits on individual expression in the past and this hasn’t travelled so well to the present  A former Malaysian Trade Minister once commented that Australians often told her how much they liked plain speaking but how they seemed to lose their enthusiasm for it quickly enough when they were on the receiving end.
    And then there are the comparisons with the Americans. One of the staple cliches is how quietly spoken and unobtrusive we are as travellers compared with loud and pushy Americans but any time spent flying around Asia these days is going to make that notion questionable at least. A recent online article on doing business with the US advised Australians to be less aggressive and boastful, to “get the tickets off themselves”. If we’ve got the Americans telling us to tone it down, something is amiss in the self image department.
    So let’s keep that mortar bomb on the mantelpiece – even if it’s a bit fat and old – and give it a good toss around every now and then. It might go off but then that’s what it’s designed to do.
     Greg from Cottesloe

  • Federal Election bits and pieces

    There was nothing new in the timing of the next election announced by Julia Gillard. There wasn’t much doubt that it would be some time in August or September. There may be a marginal benefit for the government in the early announcement. It has some major policy issues to outline – Gonski reforms, national disability and how they are to be funded. Having the resources of the bureaucracy in outlining these issues will be a considerable advantage. Furthermore, oppositions have been inclined to make themselves small targets and hide policy until late in the day. That will now be much harder for the Coalition.

    I suspect that one issue in Julia Gillard’s mind is the timing of the interim report by the ICAC in NSW on mining leases and Eddie Obeid. The ICAC evidence is extremely damaging to the ALP although it’s hard to imagine that the ALP vote can fall much further after it was almost wiped out at the last state election. The best way to make a new start in NSW would be for the federal executive to dismiss the NSW ALP state office.

    The Liberal Party has obviously been trying to remake and reposition Tony Abbott. At the moment he doesn’t seem to know if he is coming or going as he struggles with his new image.

    In the lead up to the election, Sportsbet in the SMH and perhaps other papers, carried a full page advertisement of Tony Abbott and Julia Gillard. There was the thought bubble from Tony Abbott ‘I am going to win big on election day’. The thought bubble over Julia Gillard said ‘only if you back me at sportsbet.com.au’. I wonder if Sportsbet had permission from either Tony Abbott or Julia Gillard to use them in this advertisement? If they gave their approval I would be disappointed. I recall many years ago that a major car manufacturer used Arthur Calwell’s face and name to advertise its product. He took his hat around and got some major financial settlements.

    Whoever wins the election, many must hope for a rejuvenation of the Canberra Press Gallery. It is badly out of touch with the Australian community as Julia Gillard’s misogyny speech indicated. In its group-think, it is all about politics and personality. Policy comes a sad last.

    John Menadue

  • Nova Peris and the Captain’s pick

    Julia Gillard’s action in parachuting Nova Peris into the Northern Territory senate seat  is understandable. The ALP machinery is so decrepit and undemocratic that occasional use of power by the  parliamentary leader  is necessary.

    Party members have left the ALP in droves over the years. It is a ramshackle organisation that is so easy to manipulate by faction heavies. With so few party members it is remarkable that there isn’t more branch stacking and manipulation in preselections. Apparently only about 230 party members voted in the preselection for Senator Crossin for the Northern Territory Senate. But there are over 30,000 ALP first preference voters in the subsequent senate election. So a small group of party members foisted Senator Crossin on ALP supporters.

    But Julia Gillard’s intervention is only a bandaid. She had a great opportunity at last  year’s ALP Federal Conference to put her weight behind substantial  reform. The party was considering the report of John Faulkner, Bob Carr and Steve Bracks to start the process of reform of the ALP. Prime Minister Gillard did not provide the leadership necessary. Almost a decade earlier Bob Hawke and Neville Wran also proposed reform of the ALP machinery, but little was done.

    Gough Whitlam showed that with a party machine controlled by factions and state secretaries it is only the parliamentary leader who has the heft to break through the vested interests who are more concerned about retaining power in the machine than in advancing good policy to enthuse its rank and file and win elections.

    If Julia Gillard had used her ‘captain’s pick’ 12 months ago to lead the reform of the ALP, the organisation would be in much better shape today and the parachuting in of Nova Peris would be much less necessary.

    An exercise of the captain’s power at that time would have included the sacking of Sussex Street. If that had been done there would have been a dramatic lift in the party’s standing in NSW, particularly in western Sydney.

    Nova Peris’ selection will help but it is really small beer compared with the wider reforms that are necessary. Only the parliamentary leader can do it.

  • Rio Tinto – Corporate Governance and Asia

    Since 2007 Rio Tinto has written off $US 35 billion in failed investments. It must be a world record. There are probably more write-downs to come with its investments in Mozambique coal and in aluminium in North America.

    Tom Albanese has been sacrificed but the remainder of the Rio Tinto board are apparently unscathed. They have been too lax with shareholders money that they have washed so comprehensively down the drain. The boards of some of our mining companies in the mining boom must think that they are playing with monopoly money. Booming commodity prices and demand lulled them into being careless on major investment decisions. They became very gullible. Not only have they been lax in investment decisions but they have been careless in allowing costs to balloon.

    The board of Rio Tinto oversaw the company’s operations in China when the iron ore price quadrupled. But in the business euphoria, Rio Tinto took its eyes off the ball and left local staff in charge. Four of Rio’s staff in China admitted to bribery in a Chinese court. They are now languishing in Chinese jails for up to 14 years. This sorry performance was described by our former Ambassador in Beijing, Geoff Raby, as a ‘management failure’. He was being polite. It was a debacle. So far it is not clear that any senior executives or board members have been held accountable.

    Sam Walsh was on the board of Rio at the time he headed Rio’s iron ore division, with its substantial trade with China. He is now the CEO of the whole organisation replacing TomAlbanese.

    It is also suggested that the problems in Mozambique related in part to Rio’s management style, including its relations with the Mozambique government. Rio did not appoint Portuguese speaking executives in Mozambique to manage the business.

    Our large mining companies have an excellent record as geologists, explorers and people skilled at digging up and transporting minerals but they are yet to demonstrate business skills particularly in countries that are culturally and linguistically different. I do not know of any major Australian mining company that has a board member or CEO who can fluently speak at least one of the languages of our major customers – China, Japan and Korea. Few would have even a cultural understanding of how business is conducted in these countries.

    These large companies pontificate about sovereign risk when the Australian government attempts to introduce reasonable tax regimes. These companies also tell us that we should all be raising our productivity with upskilling and improved work practices. But they don’t practice wheat they preach.

    The disasters which Rio Tinto has brought upon itself were predictable.

    John Menadue

  • Australian media and President Park Geun-Hye of ROK

    If we want to be serious about our future in the ‘Asian Century’ we will need to start with our media. The election of President Park Geun-Hye in ROK in December last year was a very significant event, but it passed in the Australian media with only the briefest of mentions. (The same could be said of the election of Prime Minister Abe in Japan in the same month.)

    Contrast that with the overwhelming coverage we had last year of the US Republican primary, the US Presidential election and now the inauguration of President Obama. The media coverage of the Chinese National People’s Congress last year also paled into insignificance compared with the morning sickness problems of a British royal. Looking at our media, an outside observer would conclude that Australia is a large island moored off London and New York.

    The new ROK President and her country are important for many reasons. The ROK is a great success story. It is a world leader in the digital economy. It is our fourth largest trading partner and our third largest export market in areas as diverse as minerals, energy, travel and education services. With ROK we have vital shared interests in resolving the tensions on the Korean peninsula. When the North Korean regime collapses there will be large numbers of refugees. We will be called on to cooperate particularly with the ROK. Like us, the ROK sent peacekeepers to Afghanistan, Iraq and Timor. Australian servicemen fought and died in Korea in the 1950s. We are fellow members of the G20.

    Against that background the election of President Park Geun-Hye was very newsworthy. Personally, she has a very interesting and colourful background.

    The election of a woman as President in a traditional patriarchal and Confusion society is a major breakthrough.  As the daughter of former strongman, Park Chung-Hee, she symbolises the ROK’s translation from a ruthless dictatorship to a maturing democracy. As the ‘daughter of a dictator’ she experienced the assassination of her father by his intelligence chief. Her mother was killed by a North Korean assassin.

    But all that significant and colourful history and more raised little interest in the Australian media. It was much easier to recycle UK and US material. Our media exert a stultifying cultural and information grip which is more about our past that our future – in Asia.

    John Menadue