There’s an interesting letter in SMH on Tuesday, “Without a payout, landlords are left in the lurch too”.
Ten years ago the writer bought a house in Graceville, Brisbane, as an investment, without being told that it was in a flood prone area. "We have since discovered the real estate agent is not bound to disclose this information." It continues “On further investigation we have discovered there were protests about our develoment in 1998, which were dismissed by Brisbane City Council." The developers, of course, would build happily if the Council okayed the land.
The problem is, of course, that the Wivenhoe dam was meant to handle flood water and prevent Brisbane flooding ever again. So the Council arguably were right not to put "flood prone" on the relevant 147 certificates for those properties. It appears that Wivenhoe was not utilised to its optimum in controlling the flood water, and it may turn out that the developers were justified in building there. It will be interesting to see what the inquest into all this finds.
Tuesday, January 25, 2011
Monday, January 24, 2011
Qld Flood Levy Proposal
This post is taken off the http://www.crikey.com.au web site.
A flood levy to pay for the cost of the catastrophic Queensland floods would be lazy policy from a fiscally lazy government. There’s something faintly absurd about a government with a budget loaded with superfluous spending and the lowest debt levels in the developed world insisting that it needs a new tax to pay for the impact of natural disasters — especially when this government itself has been arguing that climate change will cause more extreme weather and preaches “adaptation” to Pacific Island states.
It also suggests this is a government that feels more comfortable playing on voters’ sympathies for the victims of the floods than about making the case for cutting spending in politically sensitive areas.
Slapping a one-off levy on voters and telling them it’s for the floods is clearly more politically palatable than telling voters they’ve gotten used to levels of government spending that aren’t sustainable in the face of an ageing population.
A flood levy to pay for the cost of the catastrophic Queensland floods would be lazy policy from a fiscally lazy government. There’s something faintly absurd about a government with a budget loaded with superfluous spending and the lowest debt levels in the developed world insisting that it needs a new tax to pay for the impact of natural disasters — especially when this government itself has been arguing that climate change will cause more extreme weather and preaches “adaptation” to Pacific Island states.
It also suggests this is a government that feels more comfortable playing on voters’ sympathies for the victims of the floods than about making the case for cutting spending in politically sensitive areas.
Slapping a one-off levy on voters and telling them it’s for the floods is clearly more politically palatable than telling voters they’ve gotten used to levels of government spending that aren’t sustainable in the face of an ageing population.
How to cut your Home Mortgage Rate
Nick Gardner wrote in the Sunday Telegraph about how to trick banks into reducing your mortgage rate. Just tell them you are switching to another lender. Apparently Westpac refuses to release paperwork to solicitors for ten days, while the files are referred to the bank's Retention Unit. This secret group is tasked to offer deals to customers to persuade them to stay with the bank, on condition that the home owner doesn't disclose the details of the deal to others.
Nick says "banks have a lot of discretion in setting the rates that they offer you."
As Nick says, this means the banks are punishing loyal borrowers who continue placidly to pay whatever rate they are offered.
Dean Rushton, a broker of Loan Market Group, says "Loyalty does not pay, and not everybody is a very good negotiator, so get your broker to haggle on your behalf.
Nick says "banks have a lot of discretion in setting the rates that they offer you."
As Nick says, this means the banks are punishing loyal borrowers who continue placidly to pay whatever rate they are offered.
Dean Rushton, a broker of Loan Market Group, says "Loyalty does not pay, and not everybody is a very good negotiator, so get your broker to haggle on your behalf.
Tuesday, January 18, 2011
State Infrastructure Requirements
Given the horrendous damage already inflicted to the state roads and railways in northern NSW, one hopes that the State and Federal government will not be signing off on any more pet 'local' projects. For instance the $500 million proposed for the Epping Parramatta railway needs to be held back until the full extent of infrastructure repairs has been fully assessed. Just a pity that the M2 Widening can't be put on hold and that money re-allocated to where it is going to be desperately needed.
State Silver Sale "A Dud"
Damning articles in the Daily Telegraph and elsewhere are beginning to expose the appalling rip-off of state taxpayers by the Keneally government with the electricity sale. No wonder she closed down parliament early to prevent debate!
Perhaps the best comment was by Andrew Clennell, "Talk about burning the villages on the way out. Kristina Keneally and Eric Roozendaal's appearances at the power inquiry revealed one critical thing: This sale is a dog."
Perhaps the best comment was by Andrew Clennell, "Talk about burning the villages on the way out. Kristina Keneally and Eric Roozendaal's appearances at the power inquiry revealed one critical thing: This sale is a dog."
Thursday, January 13, 2011
Kirkham Bridge to be used as a Truck Park?
The latest rumour is that Transurban wishes to close one lane of the Beecroft bridge over the M2 to use it as a park for construction equipment - nothing to do with the stated reason, of widening the bridge spans!
This was never mentioned in any of the documentation submitted before the project started.
The road belongs to Hornsby Shire, not to the RTA or Transurban, and the Shire needs to ensure that the rights of access to the road by local residents are maintained as far as possible. Transurban should have to justify closing any of the bridge for any part of the 22 months of the project, and must be forbidden to use the closed lane just as a construction car park!
This was never mentioned in any of the documentation submitted before the project started.
The road belongs to Hornsby Shire, not to the RTA or Transurban, and the Shire needs to ensure that the rights of access to the road by local residents are maintained as far as possible. Transurban should have to justify closing any of the bridge for any part of the 22 months of the project, and must be forbidden to use the closed lane just as a construction car park!
Wednesday, January 12, 2011
Thoughts on Epping Bus Ramp Removal
In my post on 6 Jan, I quoted from a letter by John Goldberg, including how Transurban is relying on increased induced traffic on the widened M2 to raise cash flow. Of course for that same reason Transurban has a powerful incentive to get people out of the buses and onto the road.
I confess that I don't know what toll a bus pays to use the M2 from the north west to Epping, but I am sure displacing those commuting passengers into cars and making them drive all the way into the city will significantly increase Transurban's cash flow.
This is where the NSW government and the RTA should be applying brakes and checks on the project to apply an integrated transport solution to north west Sydney's desperate traffic problems.
I confess that I don't know what toll a bus pays to use the M2 from the north west to Epping, but I am sure displacing those commuting passengers into cars and making them drive all the way into the city will significantly increase Transurban's cash flow.
This is where the NSW government and the RTA should be applying brakes and checks on the project to apply an integrated transport solution to north west Sydney's desperate traffic problems.
Funding NSW Flood Damage Repairs
Given the awful events up north in the last few days, one assumes that the NSW government will no longer pursue the commitment of $520 million of state funds to the Epping to Paramatta rail link! Suddenly there are much more urgent needs for that and more funding to be spent rebuilding our damaged state!
It seems a shame that the $550 million funding being provided to widen 21 km of the M2 cannot be reallocated somehow to the same purpose. With roads damaged and destroyed over a large part of northern NSW and Queensland, it seems such a waste to be widening a short stretch of motorway in a project that has been widely labelled unnecessary and unjustiable.
It seems a shame that the $550 million funding being provided to widen 21 km of the M2 cannot be reallocated somehow to the same purpose. With roads damaged and destroyed over a large part of northern NSW and Queensland, it seems such a waste to be widening a short stretch of motorway in a project that has been widely labelled unnecessary and unjustiable.
Monday, January 10, 2011
Federal Government now selling NSW Silver!
According to the SMH, the federal Transport Minister, Anthony Albanese, and Kristina Keneally will sign a contract for the Epping to Parramatta train line before the state election, even though Mr Albanese must know Kristina will be turfed out of office in that election! The contract will be worded so that the $2.1 billion federal funding cannot be re-allocated to suit the wishes of the NSW electorate! So much for democracy!
Barry O'Farrell says the state needs the north-west rail link much more urgently than the E/P train. Surely if the electorate agrees with him, Kristina should not with a clear conscience be able to over-rule that majority view.
Mr Albanese is quoted as saying "this federal Labour government doesn't renegotiate our commitments; we deliver on them." Surely then he shouldn't be negotiating now with the failed NSW Labour government, but should wait until the taxpayers have voted. Then he can negotiate in good faith with the real NSW government.
The SMH says that the matter might be irrelevant. The NSW state will be expected to provide $520 million at the start of the project, but the federal government's contribution of $2.1 billion won't be required until 2014. By then the federal governments could also have changed hands. But in the meantime NSW taxpayers will be up for however much of our money the state manages to spend before Mr O'Farrell cancels the project.
Barry O'Farrell says the state needs the north-west rail link much more urgently than the E/P train. Surely if the electorate agrees with him, Kristina should not with a clear conscience be able to over-rule that majority view.
Mr Albanese is quoted as saying "this federal Labour government doesn't renegotiate our commitments; we deliver on them." Surely then he shouldn't be negotiating now with the failed NSW Labour government, but should wait until the taxpayers have voted. Then he can negotiate in good faith with the real NSW government.
The SMH says that the matter might be irrelevant. The NSW state will be expected to provide $520 million at the start of the project, but the federal government's contribution of $2.1 billion won't be required until 2014. By then the federal governments could also have changed hands. But in the meantime NSW taxpayers will be up for however much of our money the state manages to spend before Mr O'Farrell cancels the project.
Thursday, January 6, 2011
M2 Travel Time Savings Overstated
There is a powerful letter in the Northern District Times this week, questioning the whole concept of the M2 widening project. The letter is from John Goldberg, a highly qualified and experienced traffic engineer.
"The claims of travel time savings are part of a derisible economic analysis, prepared by a Transurban consultant with the clear aim of justifying the project. The claims have been shown to be spurious by (Mr Goldberg) in a paper to be published shortly. Transurban has overstated the savings by a factor of four. This means the savings are worth far less than the cost of the project over its concession lifetime."
Mr Goldberg argues that the project is only going ahead because Transurban needs to generate increased cash flow to service their huge group debt of more than $7 billion. Transurban believes the increased cash flow will mainly come from induced traffic, which will of course increase congestion and reduce the travel time savings.
Mr Goldberg says, "The M2 upgrade affair generally demonstrates that transport planning in a major city cannot be reliably carried out by agencies such as the RTA using community manipulation disguised as consultation."
However that is slightly unfair. The problem with this specific project is that, as the letter reminds readers, Kristina Keneally originally approved the project as "critical infrastructure" back in 2009, thereby removing most of the planning checks and balances that should be applied to such a disruptive and questionable project. If the project had been reviewed in the way the original M2 build was reviewed, many of the serious deficiencies in the new widening project might have been excised from the plan. Just one example is the project's intent to remove the excellent Epping Bus Ramp, which was a mandatory part of the original approval for the M2 back in the 1990's. Of course it was the RTA that persuaded Kristina to sign that infamous ruling.
Mr Goldberg suggests that the incoming government should invoke the doctrine of executive necessity and cancel the contract for this project, and undertake serious reform of the RTA.
"The claims of travel time savings are part of a derisible economic analysis, prepared by a Transurban consultant with the clear aim of justifying the project. The claims have been shown to be spurious by (Mr Goldberg) in a paper to be published shortly. Transurban has overstated the savings by a factor of four. This means the savings are worth far less than the cost of the project over its concession lifetime."
Mr Goldberg argues that the project is only going ahead because Transurban needs to generate increased cash flow to service their huge group debt of more than $7 billion. Transurban believes the increased cash flow will mainly come from induced traffic, which will of course increase congestion and reduce the travel time savings.
Mr Goldberg says, "The M2 upgrade affair generally demonstrates that transport planning in a major city cannot be reliably carried out by agencies such as the RTA using community manipulation disguised as consultation."
However that is slightly unfair. The problem with this specific project is that, as the letter reminds readers, Kristina Keneally originally approved the project as "critical infrastructure" back in 2009, thereby removing most of the planning checks and balances that should be applied to such a disruptive and questionable project. If the project had been reviewed in the way the original M2 build was reviewed, many of the serious deficiencies in the new widening project might have been excised from the plan. Just one example is the project's intent to remove the excellent Epping Bus Ramp, which was a mandatory part of the original approval for the M2 back in the 1990's. Of course it was the RTA that persuaded Kristina to sign that infamous ruling.
Mr Goldberg suggests that the incoming government should invoke the doctrine of executive necessity and cancel the contract for this project, and undertake serious reform of the RTA.
M2 Widening Access to Chilworth Reserve
This is an extract from a most helpful response from the Transurban information line, M2Enquiries@leicon.com.au, about the plans for access to the construction camp to be built under the viaducts in Chilworth Reserve.
"Thank you for your enquiry regarding the M2 Upgrade project.
"The northern access to the compound site at Devlins creek that you are refering to (near the Pennant Hills golf course) is going to be used to access the Devlins Creek compound site during the M2 upgrade. However, this access track does not give access to the southern side of the compound. Access on the southern side near Allerton Road is currently being assessed.
"The old access road between the M2 and the golf course fence only allows access in - it does not allow access out of the compound area.
"The existing informal access off Orchard Road has a corridor of Blue Gums, and the potential impacts surrounding this area of vegetation is currently being considered.
"Pedestrian access under the viaduct at Devlins Creek will be maintained where feasible, but from time to time potential short term closures may be required for safety reasons. Sinage and written notice of closures will be given prior to any closures taking place."
"Thank you for your enquiry regarding the M2 Upgrade project.
"The northern access to the compound site at Devlins creek that you are refering to (near the Pennant Hills golf course) is going to be used to access the Devlins Creek compound site during the M2 upgrade. However, this access track does not give access to the southern side of the compound. Access on the southern side near Allerton Road is currently being assessed.
"The old access road between the M2 and the golf course fence only allows access in - it does not allow access out of the compound area.
"The existing informal access off Orchard Road has a corridor of Blue Gums, and the potential impacts surrounding this area of vegetation is currently being considered.
"Pedestrian access under the viaduct at Devlins Creek will be maintained where feasible, but from time to time potential short term closures may be required for safety reasons. Sinage and written notice of closures will be given prior to any closures taking place."
Building in Flood Affected Areas
One of the most thought provoking articles on the Queensland floods was by Bernadette George in the SMH yesterday. She asks how did those people get planning permission for low-set houses on known flood-prone land!
She urges that the planners responsible for building in those areas should stipulate standards such as "floor levels to be at least two metres above ground level."
As she says, "Many older-style houses up on stilts are taking the current floods in their stride." And on the front page of today's SMH you see a Rockhampton family standing up to their knees in flood water, outside their house which was built on a brick plinth so the living areas are high above the flood water. Obviously their builders planned ahead, but the local planning councils in the area don't seem to have had the same common sense.
One contributing factor to the present flooding is the enormous amount of tree clearing over the decades, which has reduced nature's ability to absorb, retain, and restrict the effects of heavy rain.
As Bernadette says, "Nature is just doing what is entirely predictable." Town planners should be doing the same.
She urges that the planners responsible for building in those areas should stipulate standards such as "floor levels to be at least two metres above ground level."
As she says, "Many older-style houses up on stilts are taking the current floods in their stride." And on the front page of today's SMH you see a Rockhampton family standing up to their knees in flood water, outside their house which was built on a brick plinth so the living areas are high above the flood water. Obviously their builders planned ahead, but the local planning councils in the area don't seem to have had the same common sense.
One contributing factor to the present flooding is the enormous amount of tree clearing over the decades, which has reduced nature's ability to absorb, retain, and restrict the effects of heavy rain.
As Bernadette says, "Nature is just doing what is entirely predictable." Town planners should be doing the same.
More NSW Taxpayer Silver being sold off
According to the Sydney Morning Herald today, the state government will sell large chunks of public land around Royal North Shore Hospital!
Doctors say the plans would make it impossible to meet the demands of a growing population.
The chairman of the hospital's medical staff committee said this could affect NSW patients for the next 30 years.
A submission by Whilloughby Council argues that the sale is ill-considered and that planned high-rise commercial developments could get in the way of helicopters taking patients to the hospital.
One wonders at the motives of the NSW government, continuing to sell off state assets in the dying months of their lamentable rule. They need to remember they are effectively tenants nearing the end of their lease, and the taxpayers are the real owners of these assets. A tenant does not have the right to sell bits of the house before vacating!
Doctors say the plans would make it impossible to meet the demands of a growing population.
The chairman of the hospital's medical staff committee said this could affect NSW patients for the next 30 years.
A submission by Whilloughby Council argues that the sale is ill-considered and that planned high-rise commercial developments could get in the way of helicopters taking patients to the hospital.
One wonders at the motives of the NSW government, continuing to sell off state assets in the dying months of their lamentable rule. They need to remember they are effectively tenants nearing the end of their lease, and the taxpayers are the real owners of these assets. A tenant does not have the right to sell bits of the house before vacating!
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