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Our Region - Be Proud

Our Region - Be Proud

31/01/2012 12:47:25 PM

This article was originally published as 'The Region' in The Morning Bulletin in January 2012

There are frustrating aspects to our region. Accepting mediocrity is a cultural norm. Such attitudes prevailed when I went to school and date back more than 100 years. This reflects in customer service, creativity and in solving problems. The incidence of real decision makers in our region is low. Most senior positions in our region are about managing budgets set by others, not driving strategy. Creativity and education can be greeted with suspicion and putting barriers in the way of (even humble) progress is often treated as a sport. Talented younger people move away, reducing the chance of changing the status quo. Tough call? Maybe, but I see no harm in listing things that are readily verifiable to those who care to do the research.

QANTAS An Airline Grounded

QANTAS An Airline Grounded

8/11/2011 2:54:33 PM

This article was first publihed in The Morning Bulletin dated 05th November 2011. Titled 'QANTAS'

Regardless of variants, Qantas’ domestic operations have always been the driver of Qantas’ profit and that history provides a sound basis against which to test the views of Alan Joyce. Consider now the very strong $A, high fuel prices and vastly increased international competition. Then add a rebranded Virgin, which is showing signs of having all of the quality of the old Ansett, without the inflexible work practices and cost base. Sound like an environment for unrestrained pay increases?

Music 'Embrace the change'

Music 'Embrace the change'

10/10/2011 10:28:06 AM

This article was originally published as 'Music Industry is embracing the change like never before' in The Morning Bulletin on 08th October, 2011.

Queensland is known for its resource and tourism industries, but if you were invited to attend conferences on financial planning and music, would you think of Brisbane as a natural location? And would you expect the financial or the musical people to have a better grip on their industry? Which would you think of as the most professional?

Theories

Theories

12/09/2011 11:09:55 AM

This article was originally published as ‘Theories’ in The Morning Bulletin in September 2011.

The Chinese do know what they are doing. Once fragmented, four or five companies now control much of the commodity market, making prices much less volatile. High prices are not evoking the supply response of times past, and therefore prices are remaining “stronger for longer”. Such an outcome is consistent with microeconomic theory - big consumers will want to bypass the problem by owning the resources directly. Not keen on economics? Watch the movie “Dune”.

National Disability Insurance Scheme

National Disability Insurance Scheme

22/08/2011 10:21:54 AM

This article was first published in The Morning Bulletin under the heading Disability on 20 August 2011.

In the late 1960’s and early 1970’s Balmain basket weavers argued for the dismantling of institutionalised care for the disabled. If you don’t remember, rent out “One Flew over the Cuckoo’s Nest”. Once you have seen it, tell me what happens after McMurphy escapes the institution?

Flicking the switch

Flicking the switch

20/07/2011 9:23:23 AM

This article was first published in The Morning Bulletin under the heading Electricity dated 16 July 2011.

Electricity is the ultimate perishable good - It has to be used as it is produced. Coal fired power stations are at their most efficient when producing constant amounts for long periods of time. This is at odds with demand patterns, which fluctuate throughout the day, and in particular, with the weather. Industry says that power stations have to be built to meet peak demand, but coal fired power stations frequently lose money selling electricity in the off-peak, when demand is low. When demand is very high, wafer thin links between the states mean generators can’t even buy in from elsewhere, and in any event the wastage from transmission is high. Further, much distribution infrastructure is not set up to handle the two-way electricity flows necessary for a smart grid.

Boring Budget

Boring Budget

15/06/2011 11:37:40 AM

This article was first publihed in The Morning Bulletin dated 21st May 2011. Federal Budget Undoes Our Buffer Against GST

Is the recent Commonwealth budget boring? Perhaps, but it is important because of what it has failed to do. It is an embarrassment to the party that through Whitlam, dragged Australia kicking and screaming into the 20th Century, and into a liberal financial mainstream through Hawke and Keating. In fact, it seems to sow the seeds of undoing much of the great work that has led to Australia’s ability to withstand the GFC, and the nation’s current prosperity.

Rockhampton It's The Vibe

Rockhampton It's The Vibe

14/06/2011 9:58:11 AM

This article was first published in The Morning Bulletin Titled (The Show) dated 11 June 2011.

The show has moved with the times, but not so our region. These initiatives were all driven by individuals who want to achieve something. None relied on Government, and consequently avoided the squabbling and do-nothing mentality that we are saddled with. After more than 10 years back here, the problem is clear. There is simply too much politics – bring back Brophy.

A cut above

A cut above

6/04/2011 3:25:28 PM

This article was originally published in The Morning Bulletin in March 2011. Titled What can a financial planner do?

The ongoing nature of financial advising provides the opportunity for continuous financial improvement, whether through investment or through structural means. Like a GP, personal financial professionals will call in expert help when needed, but the primary relationship will be with the generalist.

The culture of fear

The culture of fear

6/04/2011 3:15:40 PM

This article was first published in The Morning Bulletin Titled (The culture of fear) dated 04 March 2011.

Being gloomy has become fashionable. Once the fun police were the precious domain of the movie theatre (a special hello to Rockhampton Twin Cinema’s, Mr. Styles), but now they are everywhere. Driven by painful political correct ideology, they seek to impose their totalitarian views on the rest of us. Most of us already understand the need to respect each other, but the PC crowd employ their tools to subvert intelligent debate and stifle development.

The Splendour of isolation

The Splendour of isolation

17/02/2011 11:21:54 AM

This article was first publihed in The Morning Bulletin dated 07th January 2011. Titled 'Splendid Isolation'

The plight of people badly affected, and the efforts of those involved in helping maintain the community deserves respect, but it’s pretty important that our community leaders speak frankly about the resilience and importance of the town. That includes not making misleading statements that 40 per cent of the city is underwater, or that we are isolated, when we never were - you only had to call the Royal Oak Hotel at Yaamba and look on the RACQ website to discover that (that’s what I did anyhow). Perhaps one sensible suggestion is a river height gauge at Pink Lily Highbanks. The grief really only starts when the river breaches those banks.

Fly In Fly Out

Fly In Fly Out

29/11/2010 12:30:33 PM

This article was first published in The Morning Bulletin under the heading Income Returns dated 18 September 2010.

The future growth in our region is not in mining or in oil and gas per se, but in servicing and making investments in those growth industries. This is Rockhampton’s history. There are many reasons to choose Central Queensland as home, but unless the thinking changes, notwithstanding the resources boom, our communities will fall further and further behind. In a fly-in, fly-out environment, much better commuter transport links between employee residences and the “coal face” are key to Rockhampton and the Capricorn Coast becoming a viable alternative to Brisbane for mining workers.

Will She Be Right Mate?

Will She Be Right Mate?

29/11/2010 12:21:05 PM

This article was first published in The Morning Bulletin under the heading Will she be right mate? dated 30 October 2010.

Underinsurance can have a huge impact on the lifestyle your family chooses to follow. The family income can often halve if families lose the main breadwinner and an unexpected event can affect your family’s way of living including making mortgage repayments, the cost of running a car, holidays and other expenses. While your superannuation fund may provide a basic level of cover – quite often it is not enough.

Super is not an asset

Super is not an asset

20/10/2010 2:38:04 PM

This article was first published in The Morning Bulletin under the heading Income Returns dated 18 September 2010.

Many think that superannuation is an asset. It is not - superannuation is a special trust formed with the express goal of providing for an individual’s income needs during retirement. From cash to property to shares to art, the assets which can be held in the superannuation trust are broad. Comparing income yield across asset classes is not easy.

What Happens Next

What Happens Next

23/08/2010 10:23:42 AM

This article was first published in The Morning Bulletin under the heading Whats Next dated 21 August 2010.

Australia performed better than the rest of the world through the GFC. The European crisis never got to crisis point. Our local economy seems soft, although car dealers tell me that business is actually quite good. CQ’s economy appears to be very interest rate sensitive, and the rural sector is finding life difficult as banks run tighter lending criteria and restrict access to working capital for seed and restocking. Looking forward, interest rates are unlikely to increase at a rapid rate.

Cold Comfort

Cold Comfort

21/07/2010 11:02:54 AM

This article was first published in The Morning Bulletin under the heading Cold Comfort on 17 July 2010.

CQ’s future lies in dispensing with wrongheaded ideas and embracing a positive social attitude. Let’s recognise that we are a service town, and regain excellence in that. I say those holding us back have had their turn. Once on our way and not before, we can launch a new slogan – “CQ. It’s Hot!”

Succession Planning for your future

Succession Planning for your future

12/07/2010 8:49:30 AM

This article was first published in The Morning Bulletin under the heading Sucession Planning LN Input on 07 April 2010.

Involuntary incapacitation can be dealt with through a specially prepared life insurance plan so that the business can continue to run, or to purchase shares from the owners if the business must close. But what of pre-determined retirement? A business with free cash flow will probably have value - the trick lies in structuring it properly.

A Positive Social Attitude

A Positive Social Attitude

12/07/2010 8:28:42 AM

This article was first published in The Morning Bulletin under the heading Budget on 12 June 2010.

In this week’s State Budget, more than $5.1 million is being directed at indigenous people and other disadvantaged groups in Rockhampton. Specific programs included $512,061 to prevent substance abuse, and $1.31 million for a diversionary centre as an alternative for police custody. As noble as these endeavours are, they should elicit sadness and anger.

2050 The New Town Dream

2050 The New Town Dream

17/05/2010 10:30:23 AM

This article was first publihed in The Morning Bulletin dated 15th May 2010. The New Town.

The suggestion of a “new town” to accommodate the influx of people that some expect from the mining and gas boom smacks of being dreamt up by people who don’t know the history of urban development in contemporary Australia. Once home to Queensland’s second largest city, our region’s struggle to keep up, is perhaps more a matter of culture than ability. Some civic leaders expound the region’s natural position with respect to the resources boom, but most development of new mines is much nearer Mackay.

Ripoll on the water

Ripoll on the water

16/03/2010 3:24:07 PM

This article was first publihed in The Morning Bulletin dated 13th March 2010. Titled 'All The Rivers Run'

Despite frequent bad press, financial advisors are going to become more, not less, important to people. The advisors will cover all types of personal finance and act as a hub between accountants, solicitors, Centrelink, superannuation and small business. They will provide broad, tailored advice on all these matters, drawing on particular expertise as required. They will charge a fee for service, based on the workload, for managing these things.

Have you heard the one about the Dog, The Mayor and The hologram?

Have you heard the one about the Dog, The Mayor and The hologram?

19/02/2010 11:04:31 AM

This article was first published in The Morning Bulletindated 16 January 2010.

The good things in our society are driven by those who explore, and ask questions. The bad, like the GFC, are often driven by popular mantras, closed mindedness and sloppy policy. Often, the important questions have already been asked – last generation, last century, an earlier millennium. And often the answers are known – sometimes widely.

Church Change and Climate Change

Church Change and Climate Change

19/02/2010 10:46:46 AM

This article was first published in The Morning Bulletin under the heading electricity generation on 19 December 2009.

As an intermittent churchgoer and a constant thinker, considering the motives of other attendees is interesting. Do they fall into one of two categories? Those who believe and try to practise the principles of Christianity (or its alternatives), or those seeking gain (insurance against damnation for example). Or are there more? Could the debate regarding climate change be considered against similar parameters?

A degree of economics

A degree of economics

19/02/2010 9:57:54 AM

This article was first published in [The Morning Bulletin] dated 7 November 2009.

Over the last 30 years, policy changes including superannuation, the deregulation of banking, labour force changes and the floating of the $A, have exposed all of us to markets. Government policy needs to be adjusted so that everyone picks up some proper economics, finance and accounting at school. School leavers who want to make a difference should get into it boots and all.

All Ordinaries Valuations

All Ordinaries Valuations

27/10/2009 11:54:46 AM

This article was first published in The Morning Bulletin under the heading 'Valuations' on the 23 of September 2009.

The point is that the overuse of “return on equity” as a performance yardstick, and the slavish belief that markets at all times value things appropriately, caused overuse of debt and declining asset values, at a time when the economy could least withstand it.

There is nothing fishy here

There is nothing fishy here

9/09/2009 9:43:58 AM

This Article was first published in The Morning Bulletin as 'Fees and Fish' dated 29 August 2009.

Paying people to help me sucks. I say every service business should install a fish tank with barra in it – like the one at the show. Paint prices on the fish, and clients can cast a lure. They pay whatever is on their catch. It’s unbiased and fair. Gives those damn professionals something to do with their time too.

A Brave New World

A Brave New World

3/08/2009 10:34:05 AM

This Article was first published in The Morning Bulletin as 'Relevance of Novels' dated 02 August 2009.

Conveying a deep respect for work, nature, dreams, wounds, and the reciprocated love a boy can have for his mentor, it is a brilliantly spare description of man’s purpose. Amongst the sea of tabloid sex-cases, it’s a reminder that such relationships are normal - in fact required - if boys are to reach maturity.

Are 'Queenslanders' being sold out?

Are 'Queenslanders' being sold out?

6/07/2009 11:10:27 AM

This article was originally published in The Morning Bulletin as "Bligh's state asset sell-off the right move for everyone" dated 04 July 2009

Now some unions are making trouble for the Bligh Government's proposed sale of some ports, toll raod concessions and parts of Queensland Rail. It is normal to draw down on savings in tough times, and many Government assets earn way less than their potential, due to bloated cost structures, abysmal customer service and politically compromised business plans.

Governments Running Up Debt - In An Economic Downturn

Governments Running Up Debt - In An Economic Downturn

26/06/2009 9:40:27 AM

This Article was published in The Morning Bulletin on Saturday 6th June 2009.

Persistent increases in the price of goods and services result in higher interest rates, reduced purchasing power and increased costs for business. Tax bracket creep benefits the Government, but everyone else misses out. How can we avoid a spike in inflation?

Opportunities for Primary Producers

Opportunities for Primary Producers

26/06/2009 9:29:18 AM

This article was originally published in The Morning Bulletin as an article on the 16th of May 2009.

Self sufficiency means having a plan for retirement, and not having to unduly rely on others. Like ants building a colony, we all have to interact to make things happen. But beyond that is a requirement to fulfill our own destiny. Setting up your financial and business affairs in such a way that your ability for self-direction, your negotiating power and your freedom is increased has to be liberating. The absence of these things is probably at the heart of many simmering family problems common on the land.

Queensland Government Elections - The Upper House

Queensland Government Elections - The Upper House

26/06/2009 9:19:11 AM

This article was originally published in The Morning Bulletin on 1 April 2009.

Before every election my phone rings. Clients and business associates hang on the end of the phone muttering about the need for change. It’s always difficult to say something sensible. Of course we need change, but will a 1950’s time warp fit the bill?

Spending to stimulate the economy - Lesson from the Great Depression

Spending to stimulate the economy - Lesson from the Great Depression

16/03/2009 8:46:38 AM

This article was originally published in The Morning Bulletin as "Government acted to replace people's regular spending" on 15th March 2009.

The Australian Government has recently handed $1,000 to pensioners. Soon many taxpayers will be receiving $900. In all, around $42 billion is being spent to help shield the Australian economy from the effects of the global downturn. The package includes funding for school buildings, home insulation and first home owners grants. It has been widely criticised by those who believe that the money is all being spent on plasma TV’s, pokies, and prostitutes.

Interest rates cuts more certain as Australian growth slows. Brighter times ahead

Interest rates cuts more certain as Australian growth slows. Brighter times ahead

2/03/2009 11:35:47 AM

This article was originally published as 'Interest rates cuts more certain as Australian growth slows. Brighter times ahead' in The Capricorn Coast Mirroron 7th May, 2008. Image sourced from http://www.flickr.com/search/?l=4&w=all&q=Sunshine+australia&m=text.

Slowing growth suggests an easing in the interest rate cycle and we expect that the RBA is likely to start lowering interest rates early in 2009.

Position your portfolio

Position your portfolio

2/03/2009 11:27:20 AM

This article was originally published as 'Position your portfolio' in The Capricorn Coast Mirror on 21st May, 2008. Image sourced from http://www.flickr.com/search/?q=Australia+money&l=4&page=2

Identifying the current state of the economic cycle can help investors position their portfolios to benefit from macro-economic changes. Based on our assessment of our position in the investment cycle, how should an investor structure their portfolio?

Bull markets make people lazy

Bull markets make people lazy

2/03/2009 11:12:51 AM

This article was originally published as 'Money just a tool, but don't let lazy have its evil way' in The Morning Bulletin on 20th December, 2008. Image sourced from http://www.flickr.com/search/?l=4&w=all&q=fingers+burnt&m=text

Investors being burnt through dodgy corporate practices is nothing new – you can look at every boom and bust over the past 400 years to see that. There is no certain “recipe” for investment, only the business cycle. Uncertainty is actually the reason investors are rewarded, yet month after month, companies and individuals market “certain” outcomes, and consumers fall for it.

Current market forces taking away all the fun

Current market forces taking away all the fun

2/03/2009 11:01:52 AM

This article was originally published as 'Current market forces taking away all the fun' in The Morning Bulletin on 22nd November, 2008.

In the current dreadful financial markets, the distinction between price and value is the reason why most financial professionals do not recommend selling into bad markets. It is also at the core of one of the biggest and most damaging fads espoused by regulators and the setters of accounting standards in recent history – marking the carrying value of assets to the current traded price.

What is good for one may not be good for everyone

What is good for one may not be good for everyone

2/03/2009 10:52:58 AM

This article was originally published as ‘What is good for one may not be good for everyone’ in The Morning Bulletin on 11th October 2008.

One of the least understood aspects of economics is the fallacy of composition. Imagine you’re at a football match, with Andrew Gaze sitting in front of you. You stand, to get a better view, while blocking those behind. Soon everyone is standing…and no better off. Put simply, what is good for the individual might not be good for the group. Understanding that helps you identify risks, so let’s apply it…

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