The Impact and Cost of Health Sector Regulation

With Mikayla Novak and Tim Wilson

Executive Summary

  • The demands on Australia’s health care sector will increase considerably as the Australian population ages.
  • The regulatory burden on health care professionals is increasing and is coming at the expense of fulfilling their primary purpose of providing health care services.
  • Health care providers may be required to liaise with up to 100 health care regulators with nearly 80 commonwealth regulators and between 15 and 20 in each state.
  • There are now more than 22,600 pages of combined state and federal legislation across 305 different Acts of Parliament covering the health sector.
  • There are unnecessary disparities in regulation for health care providers between States which cause confusion and increase the barriers to establishing new health care facilities.
  • The cost of regulation is rising rapidly. For example, the estimated compliance burden on general practice for enhanced primary care has grown by nearly 900 per cent between 2002-02 and 2007-08.
  • General Practitioners are becoming the interface for approval for Australians to access other government services such as welfare and support services draining their time to provide health care.
  • Licensing arrangements for different health care facilities from state to state add confusion to the capacity for new and existing health care providers to operate across the country.
  • The pharmaceuticals industry is one of the most heavily regulated industries in Australia and faces annual costs of at least $89 million to receive regulatory approval for sale. Much of this cost is duplicating work to seek regulatory approval already commenced or resolved overseas.
  • The average time frame for regulatory approval for a new medicine can be as high as 160 days resulting in the slower introduction of life saving or extending medicines.
  • The most effective way to decrease private health insurance premiums is not government regulation, but competition in health insurance products.
    Australia’s health care needs significant regulatory reform to ensure it can deliver the services expected of it with an ageing population.

Available in PDF here.

The ‘divine violence’ of Slavoj Zizek

Nearly half a century after 1968, Europe is again seized by sporadic outbursts of anarchic, seemingly-purposeless violence.

The extraordinary violence in Greece brought about by that country’s sovereign debt crisis is both unfocused and unjustifiable. In May, three people died, trapped in a bank that had been firebombed by rioters.

It’s been less than two years since the December 2008 Greek riots over the police shooting of a teenager, which also involved firebombs, the overturning of cars, the burning of hotels, shops and banks, and violent clashes with the police. Across the continent in France, torching cars has almost become a tradition in the Parisian banlieues. The strikes and protests over the French economic situation in January 2009 turned quickly violent. In Bulgaria, Latvia and Lithuania, there were 10,000 person strong mass protests over the economic climate-before the global financial crisis, mind you-and all have been characterised by violence.

According to Slavoj Zizek, the radical academy’s new superstar philosopher and cultural critic, that’s good violence. Or, more specifically, it’s ‘divine’.

Zizek is the next Noam Chomsky. He’s been a visiting professor at seemingly every top-tier university: Columbia, Princeton, Chicago, and New York. He’s the author of nearly 60 books, and the star of half a dozen fawning documentaries.

He is studied in symposiums at Melbourne University, in cultural studies and social theory subjects at Monash University, in film screenings at Sydney University, and in cinema studies at the University of Queensland. Zizek’s name pops up in The Canberra Times, The Sun Herald, and The Australian. He even made The Age’s ‘Green Guide’ TV supplement. He appeared last year at a Melbourne architecture conference, and has philosophy symposiums dedicated to his writing. Clive Hamilton, the former Greens celebrity candidate for Peter Costello’s former seat of Higgins, quoted him approvingly in a column earlier this year.

The Times Literary Supplement calls him ‘one of the most innovative and exciting contemporary thinkers of the left’. The Chronicle of Higher Education describes him as ‘The Elvis of Cultural Theory’, but his stage presence-with academic superstars it is fair to describe their performances-is more like Robin Williams with a thick Eastern European drawl.

Indeed, Zizek has a taste for the theatrical. His 2006 documentary where he applies psychoanalytic philosophy to popular movies titled A Pervert’s Guide to Cinema: ‘Cinema’, Zizek claims, ‘is the ultimate pervert art’. He has written introductions to collections of writings by Trotsky and Robespierre, including in both cases partial apologies for both the men and their methods. And the cover of a recent book, In Defence of Lost Causes, is illustrated with a picture of a guillotine.

Such publicity-consciousness has its rewards. The Slovenian psychoanalytic philosopher is as close to a cult figure as the academy’s post-modernist community can produce.

Zizek has a habit of throwing broad and shocking statements that slam down on the table, then quietly adding caveats, before finally and confidently arguing the opposite.

Good showmanship, sure, but it has a theoretical basis. Zizek is a follower of the French psychoanalyst Jacque Lacan, who was himself a follower of Freud. Zizek uses Lacan’s concepts of the Symbolic, the Real, and the Imaginary – they all require capitalisation – to describe, not things which are real, symbolic, or imaginary, but things which are true to themselves, or symbolic in the realm of pure language.

That’s only the half of it.

Lacanian psychoanalytic philosophy is infamously impenetrable. Alan Sheridan, who first translated Lacan into English described this lack of clarity as wilful. ‘Lacan,’ Sheridan argued, ‘doesn’t intend to be understood … He designs his seminars so that you can’t, in fact, grasp them.’

For all the complexity of postmodernism, when you read such post-modern luminaries such as Lacan, you can’t help but get a nagging feeling that it is an elaborate prank.

Zizek wears the clothes of postmodernism, and that parodic sensation is more overt. There is the same wordplay with jarringly capitalised adjectives, and reference to the ‘master-signifier’ pattern that controls history, but it feels like criticising Zziek does nothing more than broadcast that you have missed his joke. One could not describe the Disney movie Kung-Fu Panda as the best description of contemporary political ideology without some degree of ironic detachment.

Nevertheless, for all of Zizek’s movie analogies, his blurry theory and his post-modern theatricality, they have a largely simple message.

More openly than his academic rockstar predecessors Chomsky, Foucault and Sartre, Zizek is an unashamed and unremitting revolutionary Marxist. As Johann Hari wrote in the New Statesman in 2007, ‘When you peel back the patina of postmodernism, there is old-fashioned philo-tyrannical nonsense here.’

According to Zizek, capitalism is violence: ‘the self-propelling metaphysical dance of capital runs the show’, providing the ‘fundamental systemic violence of capitalism … this violence is no longer attributable to concrete individuals and their “evil” intentions, but is purely “objective”, systemic, and anonymous’.

The market economy may seem like a web of peaceful interactions for mutual benefit, but really it is supported by aggression and oppression. When the government of a nominally capitalist country goes to war, the marketplace is to blame.

The awful events that occurred in Abu Ghraib were not crimes, but manifestations of the American economic system: ‘Iraqi prisoners were effectively initiated into American culture’.

So, for Zizek, the clash between Islamist terrorism and the Western world is not a clash between barbarism and civilisation, but between two types of barbarism, ‘a clash between anonymous brutal torture and torture as a media spectacle’. Zizek’s 2009 book, First as Tragedy, Then as Farce, expands on this theme. The two big events of the first decade of the twenty-first century – the destruction of the Twin Towers, and the Global Financial Crisis – spell the end of the liberal order, destroyed once by the violence of radical Islam, and then again by the violence of the collapsing share market.

What is striking about Zizek’s argument so far is how common this view is.

Zizek is clearer than most, but the moral equivalence of capitalism and barbarism has been one of the radical left’s primary themes since well before September 2001. Michael Leunig wrote in The Age in March this year that ‘Our culture has thrived on the stabbing impulse … If schoolboys stopped being violent, the empire and the free market would surely crumble … Our unique brand of civilisation depends as much upon conflict and annihilation as it does upon co-operation.’

When we read that the ever-repeated claim that the Iraq War was a war for oil we are being told that maintaining the ‘system’ of trade and globalisation, by definition, requires the occasional violent invasion of other countries.

Never mind that a much cheaper way to acquire Iraqi oil would have been to do the capitalist thing and just buy it. The cost of the Iraq war is now well over one trillion dollars.

Still: in the minds of many in the radical left, warfare is not only a necessary condition for the existence of capitalism, but its most pertinent feature. Zizek and his co-ideologists use the literal violence of the wars in Afghanistan and Iraq, to damn what they imagine is the more perverse violence of the competitive marketplace.

These beliefs allow writers like John Pilger to claim, as he did in New Statesman in May, that the International Monetary Fund and ‘neoliberalism’ is an ‘occupying force’, writing that the Greek protestors ‘are clear who the enemy is and regard themselves as once again under foreign occupation. And once again, they are rising up, with courage.’

It is in those protests that Zizek detects ‘divine violence’. Divine violence is an act of violence not for revenge, or to achieve a political goal, but an act of violence so extreme that it upsets the fabric of the social order; terror deployed for political purpose, but with no political goals, outside the disestablishment of the status quo. The Terror of the French Revolution was divine violence-a radical break with the past-as the revolutionaries who rejected the social norms and habits of society.

It is only through extreme violence-which is gasping out in contemporary Europe-that the world can earn its redemption, and the break from capitalism can finally be made.

This distinction between violent acts and divinely violent acts is Zizek’s key to history, allowing him to dismiss the monsters he dislikes, and defend those whose aims he supports.

Adolf Hitler may have been a brute, but he was a brute in Zizek’s eyes, because his Holocaust was fundamentally conservative – it sought to defend a status quo rather than traumatise the world into a higher level. In Violence, Zizek writes:

If one means by violence of the basic social relations, then as crazy or tasteless as it may sound, the problem with historical monsters who slaughtered millions was that they were not violent enough.

In In Defence of Lost Causes, he writes:

… crazy, tasteless even, as it may sound, the problem with Hitler was that he was not violent enough, that his violence was not ‘essential’ enough. Nazism was not radical enough, it did not dare to disturb the basic structure of the modern capitalist social space (which is why it had to focus on destroying an invented external enemy, Jews).

… Hitler did not ‘have the courage’ to really change things; he did not really act, all his actions were fundamentally reactions, that is, he acted so that nothing would really change, he staged a great spectre of Revolution so that the capitalist order could survive.

This is, incidentally, a charge he apparently also lays at the feet of Pol Pot in his upcoming book, Living in the End Times – that Pot did not go ‘far enough’. (The moral contrast with John Pilger, who played the major role in exposing the murderous Pol Pot regime to the West, could not be stronger.)

To those who might object, Zizek quotes Robespierre’s denunciation of critics of divine violence who focus on the victims of terror: ‘A sensibility that wails almost exclusively over the enemies of liberty seems suspect to me. Stop shaking the tyrant’s bloody robe in my face, or I will believe that you wish to put Rome in chains.’

That, certainly, is the message sent by the anarchist faction of the Greek rioters, whose response to their government’s austerity measures was to murder three bank workers. Writing of the mob violence of Haiti under Jean-Bertrand Aristide, Zizek says:

Although we are dealing with what can only appear as ‘immoral’ acts of killing, one has no political right to condemn them, because they are a response to years, centuries even, of systematic state and economic violence and exploitation.

For those Greek rioters, this makes sense.

If James Bond is granted a licence to kill by the state, the mob is granted a licence to indiscriminate terror by Slavoj Zizek.

Privacy pose shows the minister is off his Facebook

It must have felt nice for Communications Minister Stephen Conroy not to be the bad guy. Just for a little while.At a Senate estimates hearing last week, being peppered by questions finding even more flaws in his internet filter plan, Conroy seized an opportunity to direct a bit of fury Google’s way. And at Facebook, too – the minister was on a roll.

Conroy accused Google of the ”largest privacy breach in history across Western democracies” for its apparently accidental sampling of publicly accessible data from home wireless internet networks. Then he claimed Facebook had ”gone rogue” because the social network’s privacy policy was getting increasingly complex and confused.

”What would you prefer?” asked Conroy. ”A corporate giant who is answerable to no one and motivated solely by profit making the rules … or a democratically elected government with all the checks and balances in place?”

Sure, Conroy’s sudden, passionate defence of the privacy of Australian Facebook profiles could be totally sincere. But recall this: he is a member of a government that is about to install body scanners in airports. Body scanners aren’t ”mistakes”, as Google described its inadvertent over-collection of data.

They’re designed to peek under clothes and investigate the nude contours of travellers. Some are able to capture and store images. Now that’s a privacy problem to be worried about.

At least when a corporation breaches privacy, it’s relatively easy to deal with.

If you don’t like Facebook’s privacy settings, you can, you know, quit Facebook. It’s not hard: it’s in the ”Account Settings” tab on the top right corner of the site. If enough people do, Facebook will have to reform its ways, or go out of business.

And if you don’t like that your wireless network is unsecured for Google or your neighbours to look at, secure it.

Most Australians now run high-powered wireless networks in their house and use them for online banking. Perhaps a few minutes thinking about network security wouldn’t go astray.

Certainly, Google should be chastened by its blunder. If they have broken any Australian laws, then they should be punished.

But when the government runs roughshod over our privacy, that’s much more serious.

As Conroy was launching into Facebook, a genuine threat to privacy was winding its way through Parliament – healthcare identifiers, which form part of the government’s electronic health records plan. If it passes, every Australian will be allocated a unique number, and encouraged to store their health records in a government database. No information is as sensitive as health records. And these records will be accessible to half a million healthcare workers around the country. Indeed, that’s the point.

Ensuring information security in high-stress environments (like emergency rooms) or in busy retail environments (like a Medicare outlet) is no small task. It’s easy for computers to remain unlocked, or logged-in, even if just for a short time. So it won’t take very long for a serious compromise of security to occur.

In general, eHealth is a good idea. But what the government proposes is a universal, compulsory, centrally managed and bureaucratically controlled record system. Individuals will have no direct control over their own records. (Unlike, for instance, the private online health record systems available from Microsoft and Google.)

The eHealth scheme is an Australia Card for your embarrassing bowel problem.

Privacy problems are endemic to centralised government systems: 1000 Medicare employees have been investigated for spying on personal information in the past three years alone. That’s one in six Medicare employees.

There are problems in Centrelink too. In 2006, after a two-year study, investigators uncovered 800 cases of illegal snooping by 100 staff.

Now CrimTrac, the federal agency in charge of criminal databases (fingerprints, DNA, and criminal records) wants to control data from law-abiding citizens too (drivers’ licences, birth registries and passport photos), all matched up to the electoral roll and collected on a nationally accessible police database.

The CrimTrac head, Ben McDevitt, claimed police ”need to have access to the sort of data that is held by various governments in order to establish an individual’s identity”. He said some privacy may have to be sacrificed for better law enforcement: ”I don’t find that at all threatening or big brotherish.” How reassuring.

Facebook has been deeply stupid – abusing the trust of users, continuously changing their privacy settings, and playing fast and loose with personal information. The company has long seemed dismissive of many privacy concerns and it deserves to be harangued by the press and punished by the marketplace.

But at least you can quit Facebook if you’re unhappy. If a government department abuses your trust or compromises your privacy, you can’t do anything.

Defence’s Spending Debacle

If you still have faith in the natural efficiency of government, there’s a quick way to eliminate that.

Read the first dozen pages of the Australian National Auditor Office’s report into the Defence Department’s Lightweight Torpedo Replacement Project, which was released last week.

In the mid-1990s, Defence decided it wanted a new anti-submarine torpedo that could be deployed on frigates, helicopters, and patrol aircraft. Phase 1 of this acquisition started in March 1998.

Twelve years and two months later, $391 million has been spent and there’s still no torpedo. The whole thing would be substantially over budget if they hadn’t eliminated three of the five platforms the torpedo was originally supposed to be deployed on.

In fact, the auditor general has now pointed out the torpedo will never do what the Defence Department wanted it to do.

The audit catalogues the project’s decade long history of poor planning, mismanagement, buck-passing, and careless decision-making. The Defence Department thought they were buying an off-the-shelf piece of equipment, already being used by other countries, but it took them “several years” to realise that was “not the case.”

Not a resounding success, then.

Certainly, some big government projects don’t function as advertised. The Rudd government has worked hard to remind us of that truism.

But the list of Defence projects that are over-budget and mishandled is pretty impressive.

The $16 billion F-35 Joint Strike Fighter is well on its way to becoming as iconic a debacle as the Collins class submarine. The Seasprite helicopter was cancelled in 2008, because it was already running seven years late, and we’d already spent $1 billion on it.

The Wedgetail airborne early warning program is four years overdue. The Tiger Armed Reconnaissance Helicopter: also four years overdue, and mired in contractual disputes.

The upgrade of the M113 armoured personnel carriers are three years overdue. The Auditor General found the M113 upgrade had been characterised by “poor project management practices; ineffective project planning; inadequately defined project objectives; and technical problems”.

Indeed, “poor” is a word commonly encountered in Defence audit reports. A report published in March covering explosives procurement documented poor budgeting practices, poor lines of responsibility, poor contract management, and poor project administration.

Even a new program designed to cut down on waste – a logistics information system to track Defence assets – has blown its budget by 20 per cent and delayed three years.

It’s almost as if Defence is constitutionally incapable of buying new stuff without being overcharged.

A McKinsey report earlier this year found Australia’s military spending was among the least efficient in the world. The consultancy compared the amount of money we spend with the amount of equipment we procure. In a list of 33 major countries, we tied with the United States for worst at getting value for our Defence dollar.

Part of the problem is politics drives procurement. Politicians want to buy Australian-made.

The McKinsey report noted those countries which tried to procure their equipment domestically tended to get worse value for money. That’s obvious here: the Auditor General found a desire to support local industry meant the torpedo program was pushed ahead despite critical difficulties with the project.

You’d have thought the government would have learnt from the Collins class submarine fiasco, which was built in Australia to everyone’s great regret. But the government intends to build the next generation of submarines in Adelaide too. In fact, two-thirds of the $100 billion expected to be spent on defence acquisitions over the next decade will be spent in Australia.

That’s because politicians don’t like to miss any opportunity to claim they’re “creating jobs”.

The bigger the problem is the easier it is to spend other people’s money irresponsibly. Reckless spending is common across all areas of government. But it’s especially common in Defence, where decisions about what to buy are based on guesstimates of the strategic environment 10 or 20 years down the track.

Yet once procurement programs are started, they’re hard to stop. One military insider told The Australian earlier this year, “to question the F-35 inside the Defence Department is a dangerous career move”.

The Rudd government intends to clean up military procurement.

But don’t hold your breath. Ever since the Turana project – a pilotless target aircraft for the Navy – was embarrassingly cancelled in 1979 there have been frequent reviews into reforming Defence procurement processes. They all find endemic mismanagement, and they all recommend greater accountability.

Defence procurements are highly technical, often secretive, and far removed from the eye of the taxpayer. But the torpedo program makes the home insulation scheme look like the ideal model of policy development.

It would be delusionally optimistic to believe this is the last indictment of a Defence program we’ll see.

Why trimming the waste line is harder than it looks

It must be election time: fiscal conservatism is fashionable again. Tony Abbott and Joe Hockey go into this election with a battle cry about the Rudd government’s budget deficits and ballooning national debt. Kevin Rudd claims the budget is heading unstoppably back to sweetness and surpluses, but the opposition still has a case – by 2011, the government will owe $90 billion, 6 per cent of our GDP.

Hey, fiscal conservatism worked for Kevin07. It might work for TonyTwentyTen. But fiscal conservatism is easy when budgets are riding high and government debt is negligible. If the budget isn’t balanced, and debt needs to be reduced, then you’ll want to identify government programs to cut.

In his budget reply on Thursday, Abbott identified a couple of cuts – abandoning the national broadband network, fiddling with the building education revolution, and a freeze on hiring new public servants for a while. And reducing government advertising. Every opposition wants to reduce government advertising.

It’s a pretty tepid start, but it’s a start; Joe Hockey will apparently propose more cuts this week.

He’ll need to. If the Liberals want to walk the ”high road of expenditure restraint” and clear the national debt as soon as possible, they have to cut a lot more spending. Luckily, nobody has to look far to find things to cut.

The government is giving a not-for-profit $120,000 so they can host an interstate rickshaw ride to raise awareness of poverty. We’re giving a wallpaper company in New South Wales $36,000 to update its website, and $70,400 to another company so it can develop a ”social game platform”.

As well, $15,000 went to a team of glass percussion artists, $100,000 has gone to a Hervey Bay company to build two new cabins in their caravan park, and $8000 of federal money paid for an electric scooter-charging station in Victoria Park, Western Australia.

These are all part of multimillion-dollar programs that could be eliminated instantly.

Then there’s the $13 million we give to the Australian Wine and Brandy Corporation, and the Grape and Wine Research and Development Corporation’s $27 million. (They’re different, apparently.)

And the $150 million the government plans to spend on that idiotic ”Nothing Like Australia” tourism campaign. And the $254 million for elite sport programs.

That should be the test. You’re not serious about reducing government spending if you’re unwilling to upset the men’s Olympic volleyball team.

With so many so obviously absurd programs, you’d think eliminating waste would be easy. But every program, no matter how silly or unnecessary, has passionate supporters.

When the government spends, it makes some individuals and industries reliant on that spending. And public servants whose careers depend on that spending’s future. No matter what, someone, somewhere, gets upset when you cut a government program.

So governments are usually reluctant to get rid of anything.

Take the Department of Climate Change. Its 640 hand-picked bureaucrats were charged with implementing the government’s emissions trading scheme.

So you would have thought once the government abandoned the scheme, those bureaucrats might no longer be needed. More fool you. They’re still there: patiently waiting for their real jobs to start, filling in the long hours of the day tinkering with renewable energy regulations and trying to fix the insulation program.

On the Labor side, politicians with ties to public service unions hate the prospect of eliminating the jobs of their supporters.

And when Joe Hockey flagged the possible public service reductions earlier this year, his Liberal parliamentary colleague Gary Humphries said Hockey would have him ”to reckon with”. Humphries is the Senator for the ACT, and Canberra is a government town.

Right now, no one is more aware of how hard cutting the size of government can be than the new British Prime Minister, David Cameron. He enters No. 10 with the country labouring under more than $A1.3 trillion of national debt. If the United Kingdom doesn’t want to become the Greece of the north, Cameron will have to do something drastic.

Certainly, both Gordon Brown and Cameron went into the general election saying how much they wanted to tackle this debt. Brown proposed reducing government expenditure by 10 per cent, cunningly campaigning on an ”I broke it, I’ll fix it” platform.

But neither candidate was eager to go into too much detail about just what spending they planned to cut. Because many of those cuts will have to be public service retrenchments.

No matter how much the British people say they want the UK’s budget back in the black, it will take a lot of political courage for Cameron to get it there.

In Australia, that’s a big problem too. There’s much government waste to cut. But waste has friends and cutting waste makes enemies. Nobody wants to make enemies in an election year.

Should terror suspects be protected by politics?

In Dr Strangelove, the crazed General Jack D Ripper claims ‘war is too important to be left to the politicians’.

So, it seems, is terrorism.

It’s been just over one week since a Nissan Pathfinder caught fire in Times Square. The press has focused on the modest drama of stopping the departing Emirates flight carrying the alleged terrorist Faisal Shahzad, as he tried to leave the country.

But still,it seems he was pretty easy to catch.

The Pathfinder was taken to a forensic lab where investigators quickly traced its provenance – it had been sold on Craigslist, two weeks before the incident. The sale was made in $100 bills in a supermarket car park.

But the seller had the buyer’s mobile number. And, with a sketch artist, was able to draw a picture of buyer’s face. Better: the buyer had driven himself to pick up the Nissan, and left his black IsuzuRodeo in the car park.

With the registration of the Isuzu, investigators now had Faisal Shahzad’s home address. They didn’t even have to break in. The key to his apartment was in the Nissan’s ignition.

Shahzad was in custody 53 hours after the bomb was left in Times Square.

The tale of Shahzad’s speedy arrest makes him look less like a formidable jihadist with Pakistani terror camp training, and more like an incompetent, failed criminal.

But it’s worth dwelling on the particulars of how Shahzad was identified and arrested because the legal system largely worked.

What little effort Shahzad made to cover his tracks was easily side-stepped. He took two days to try to leave the US. The US government says Shahzad claims to have learnt bomb-making from the best, but his bomb didn’t work.

And the legal case against Shahzad seems to have been made even easier because he started chatting to the FBI, apparently giving them “valuable intelligence and evidence”.

Seems too simple, doesn’t it? That’s because the politicians haven’t become involved yet.

Take the question of whether Shahzad should have been informed of his legal rights at his arrest. After investigators confirmed there were no other attacks imminent, he was. John McCain claimed doing so was a mistake. And the ranking Republican on the Homeland Security Committee, Peter King, strongly agreed, adding: “I know he’s an American citizen but still…”.

Joe Lieberman upped the ante by proposing to give the government power to remove anybody’s American citizenship if they are merely suspected of being a terrorist. In their view, the rights we afford criminals are getting in the way of winning the war on terror. But the sorts of legal changes they recommend could very well lose it.

Terrorism is against the law. It’s against a lot of laws. And even in a post-Guantanamo world, terrorism trials are conducted in the shadow of centuries of legal precedent, an adversarial court system, and extensive avenues of defence and appeal.

Those bombastic tough-on-terror politicians – if they got their way – could easily undermine terror prosecutions. Because it’s not a question of whether terrorists deserve legal rights. It’s that ignoring those rights allows terrorists to avoid justice.

As David Frum has pointed out, if Lieberman’s proposed citizenship laws were in effect, the US would be on its way “to court right now to litigate the issue whether the Times Square bomber’s bombing plot indicated an intent to relinquish his nationality. Only after taking that issue through trial and appeal (maybe multiple appeals) could we get to work questioning and punishing him”.

It’s happened before.

Ali Saleh Mohamed Kahlah al-Marri was arrested shortly after the September 11 terrorist attacks, accused by the government of being an al-Qaeda sleeper agent, and taking orders directly from Osama bin Laden.

With all the charges against him, al-Marri potentially faced 143 years in prison if convicted in a civilian court, according to the Cato Institute’s David Rittgers. But the Bush administration was eager to show that American counter-terrorist efforts were a ‘war’ in America as much as Afghanistan. It moved him out of the civilian court system and into military custody.

As a result, after years of legal wrangling and a Supreme Court case, he was convicted in October 2009 on just one count of material support for terrorism. He got eight years.

If you want to punish terrorists to the fullest extent of the law possible, that’s an awful outcome.

Like Australia, the United States has a civilian legal system which has evolved from centuries of English legal precedent. It’s handled mass murderers and politically-motivated misdeeds for hundreds of years.

Terrorists believe they are freedom fighters; captured terrorists believe they are political prisoners. Let’s give them the disrespect they deserve and treat them like common criminals
.

Spurious notions of ‘national character’ aren’t helping

Are Australians racists? Well, yes. And no. Some are, some aren’t. It’s a mind-numbingly circular question, but just the sort of mind-numbingly circular question that those in the social commentary business love. (Six idiots dress up in blackface on Hey Hey it’s Saturday, and that’s the first half of Q&A over with, two weeks’ worth of columns in quality broadsheets, and a comfortably full switchboard on ABC radio talkback.)

Let’s try to wrap up this question now. It would be fair to assume that somewhere between one and 22 million people within Australia’s territorial borders are racist. It’s faintly ludicrous to attribute any sort of character to a collective group of people. Either the characterisations end up as utterly banal — Australians like barbecues! — or completely nonsensical.

A columnist trying to get to the bottom of the recent spate of attacks on Indian students in Melbourne writes that Australia ‘has a cultural tradition that in large part is underpinned by aggressive opportunism’. Michael Leunig reckons: ‘Our culture has thrived on the stabbing impulse.’ But on the other hand John Brumby has argued that ‘Victorians are committedto tolerance’ in an article condemning racially motivated attacks by some of those apparently tolerance-committed Victorians.

Maybe ‘we’ are racists, but ‘we’ also must be pretty cluey. A recent article discussing the Howard government’s environmental policies says that ‘the Coalition’s new-found eco-friendly initiatives were deemed greenwash by the electorate’. Very perceptive. Makes you wonder why a full 22 per cent of the electorate believe in witches, at least according to a Nielsen poll late last year. Headlines in the National Times declare that ‘we will forget Haiti’, that ‘we give our kids names fit for puppies’ and that ‘we love to click on’ Naomi Robson. I don’t plan on doing any of those things.

The idea that Australia has any sort of national character obscures our understanding much more than it facilitates it. Individuals, actions, and laws can be objectively racist. Nationalities cannot. After all, even the clearest example of racism in this nation’s history, the White Australia Policy, had its opponents, particularly among the free trade movement.

Of course, national circumstances — politics, history, geography, religious belief, sheer bloody luck — can influence the cultural attitudes of individuals within that nation. But you only have to watch our Prime Minister’s awkward attempts at Australianisms to see how artificial these national tropes can be.

Personalities do not change at national borders. How many times have you been told by recently returned overseas holidaymakers that ‘the people were just so friendly’? There are more than 3,000 hits for ‘the people are friendly’ on the Lonely Planet website. There is just one for ‘the people are unfriendly’ — you won’t want to go on holiday to Rome.

A 2005 study in Science sought to test views about national character against personality traits of individuals within that nation. The study found that ‘Perceptions of national character are not generalisations about personality traits based on accumulated observations of the people with whom one lives’; in other words, there was no correlation between a belief that Australians are extroverts, and the number of Australians you’ve met who are actually extroverts. And the study found that people vastly exaggerate what little differences do exist between countries. There is much greater variety of character within a nation than between nations. If you don’t believe that, compare Mark Latham with Kevin Rudd. Hard to believe they’re from the same party, let alone the same country.

It would be nice to believe all Australians recognise that democracy should be tempered by the common law, political power and judicial power should be in constant opposition, and human rights need constant and aggressive defence. But once again: 22 per cent of Australians believe in witches. This isn’t just a complaint about vapid rhetoric. When faced with reports of attacks on Indian students, it would probably be better to avoid all this empty navel-gazing about the possibility that racism is inherent in our national character, and focus on what concrete political failures may have tolerated those attacks.

Victoria has the lowest number of police per capita in any Australian state. That is surely more a factor in the state’s urban violence problem than any ‘cultural tradition [of] aggressive opportunism’. A psychological profile of Australia’s national character — if it’s even possible — is of absolutely no use when we can’t get basic policing right.

Capitalism Is Ruining The Planet, And Pigs Might Fly

The home insulation program has been scrapped. And the emissions trading scheme has been abandoned.

But try not to worry too much. We are all a lot more environmentally sustainable than you imagine. Just look what happens when a little piggy goes to the market.

In 2008, a Dutch conceptual artist, Christien Meindertsma, chose a single pig and followed what happened to every part of it as it was slaughtered, sold, distributed and processed around the world.

Pigs are not just made out of ham. Her pig – Pig 05049 – went into 185 separate products. Pig hair goes into paintbrushes. Protein from the hair is used to soften bread dough. Some pig skin is eaten (scratchings), and some sold to become practice canvas for tattoo artists. Pig leather becomes safety gloves. Collagen from the skin is sold to become glue, beauty masks, an ingredient in energy bars and a binding agent for liquorice.

Gelatine is derived from the collagen, which goes into pretty much every dessert – jelly, cupcakes, nougat, custard pastry, marshmallows, chocolate mousse, ice-cream and tiramisu. That’s just the outside of the pig.

The bladder becomes the skin of a tambourine. Haemoglobin goes into cigarette filters, and is added to ham to enhance its appearance. From pig’s bone fat we get antifreeze, floor wax, toothpaste, crayons, anti-wrinkle cream, make-up foundation, and hair conditioner.

And even bullets. Gelatine from pig bones helps move gunpowder into shell casings.

There are more than 150 other products. No pig bits are wasted.

But Meindertsma’s findings are extremely counterintuitive. We’ve been taught that we live lives of reckless, wasteful consumption. We’re told we have “affluenza” – an illness of consumerism with symptoms that include high credit card bills, environmental degradation and moral soullessness. Australia’s affluenza theorist, Clive Hamilton, has written that “consumer capitalism loves waste”.

By contrast, every school child learns that the Native Americans used “every part” of the buffalo they killed. Often they did – that’s subsistence living for you. But sometimes they herded them off cliffs (“buffalo jumps”) thousands at a time.

One 19th-century explorer, Meriwether Lewis, saw tribes killing “whole droves” of buffalo, salvaging only “the best parts of the meat” and leaving the rest to “rot in the field”.

Even at their most frugal, earlier societies could never match the resourcefulness of the global marketplace.

Pig 05049 shows how magnificently complex and refined global capitalism really is. Everything in a pig can be sold to someone, somewhere. Nobody wants to miss an opportunity to profit, even if it involves selling pig bones to be burnt into ashes which are then sold again, and again, and again, eventually helping produce German train brakes.

Or, to put it another way: waste is expensive. Time and energy are extremely valuable, and, as farmers know, so are pigs’ pancreases (to produce insulin).

After all, our entire economic system has developed on the idea that one person’s trash is another person’s treasure. We sell things that other people can use better.

A competitive economy encourages businesses to be less wasteful. To reduce the amount of energy used in production, or to reduce packaging to its absolute minimum, is to save money.

Ikea “flat-packs” its furniture because it’s more economical to ship that way, and it burns fewer fossil fuels for their buck.

Walmart justified its packaging reduction program (a target of just 5 per cent less packaging by 2013) by pointing to the $3.4 billion the company would save. Corporations aren’t altruists. That’s why a 2008 survey found that 76 per cent of corporate sustainability efforts were aimed at reducing package waste.

Anybody who has travelled in the past few years will have seen that many hotels don’t wash linen any more, unless it is specifically requested. Good for the environment, perhaps, but definitely good for the bottom line.

Even the globalisation of food produce is an example of market forces pursuing sustainability.

“Food miles” advocates believe we should only eat food produced locally, that it’s environmentally obscene to be transporting food across the world.

But the biggest carbon contribution of food isn’t how far it has travelled. It’s how efficiently it was produced. And efficiency is caused by things like climate. So a British government report found that importing tomatoes from Spain was more sustainable than growing them locally. A study by three New Zealand academics found that the same was true for apples grown in New Zealand and sent to the United Kingdom.

Sure, that seems bizarre. But we live in a world where tiny bits of pig are used to produce the copper that makes up computer circuitboards, and other bits used to reduce moisture in newspaper. Globalisation is definitely weird. But it’s not as unsustainable as everybody says.

Green Policies: Too Much Of Not Enough

It can’t be a coincidence: the worst examples of bad policy making and implementation in the last few years have been green policies.

The Federal Government has spent the last few months trying to neutralise the fallout from the home insulation scheme. And not totally successfully: last night’s Four Corners program uncovered even more prior warnings about the dangers of the Government’s policy. Kevin Rudd can’t fire Peter Garrett twice.

But don’t forget: the Government has also been embarrassed by problems with its solar panel subsidies. And its green loans scheme. And its National Green Jobs Corps.

There’s just something about the environment that leads politicians to abandon the basic principles of good policy making.

The Hawke Review of the Administration of the Home Insulation Program, released this month, found public policy essentials, like eligibility criteria, means testing and co-payments – that is, getting homeowners to put a little skin in the game by contributing some of their money – were conspicuously absent from the program.

Whether the program should have included co-payment was apparently raised in Cabinet. It was rejected.

And the Hawke Review found that advice to homeowners that they get at least two quotes for installation was abandoned before the program was fully launched. Recommending consumers follow basic market diligence was against the Government’s interests.

The Government still claims we had an insulation subsidy-led economic recovery. As Lindsay Tanner has argued: “I don’t think it’s right to say we should have sat back… dotting the i’s and crossing the t’s because we were in a crisis situation.”

There must have been a few more i’s left to dot. The cost of cleaning up the insulation scheme (around $1 billion) is nearly as much as the cost of implementing it in the first place ($1.5 billion was spent before the scheme was pulled).

By any standard, that makes the home insulation program an absolute debacle.

But the insulation program was perhaps not as much a debacle as the less-publicised green loans program. Under this program, homeowners could borrow up to $10,000 for four years to make sustainability improvements to their houses. The Government helpfully paid the interest on the loan.

Unsurprisingly, such generosity led to widespread rorting. The Government was forced to shut the whole thing down. Penny Wong announced last week that taxpayers are going to cough up another $4 million to audit the green loans.

Another policy fiasco: the solar panel subsidy scheme. That also had to be shut down early. It was supposed to cost $150 million. The final price tag is around $1 billion.

Then there is the Government’s National Green Jobs Corps. Apparently, when it announced it mid-2009, the Government didn’t actually mean to imply they would be green “jobs” – they’d be work experience for people getting Centrelink benefits.

I guess you shouldn’t judge a policy by its title.

Last year, Liberal MP Joanna Gash rightly described the green corps as “basically work for the dole with a green bent”.

But then in January Tony Abbott announced his own low-carbon copy – a 15,000-person green army.

Indeed, the Opposition’s direct action climate policy is swollen full of clever little green schemes. Twenty million trees will be planted. Grants will be provided for towns to convert to geothermal, tidal, and solar power. Rebates for home solar panels will be extended.

Abbott’s environmental centrepiece is an annual $1.2 billion emissions reduction fund. Companies which reduce their emissions below an individually determined baseline will be compensated. Those which exceed their baseline will be penalised.

The most important thing for a company will be getting a favourable baseline. Imagine how many opportunities there will be to game that system.

A report last week from the Commonwealth Auditor General found that state and federal governments are usually uninterested if their climate change policies are successful or not. The public accountability of individual environmental policies “has generally been poor.”

The Auditor General counted at least 550 separate climate change programs across the country, many of which were Howard government programs. We don’t really know which ones work. And if the ad hoc way bureaucrats report the results of their environmental programs is any indication, governments don’t seem to mind.

Obviously, it’s about green quantity, not green quality.

Could we expect anything else of policies which have ‘save the planet’ as their criteria for success? Public debate about the environment is characterised by emotion and ideology. Governments respond with the same.

The insulation program, the green corps, the solar panel subsidies, and the green loans program made stately headlines when they were first announced.

But the goodwill generated by those headlines doesn’t last when time reveals how poorly thought out the green policies actually are.

Taxation’s violent history

Any change in the tax system is a change in our relationship with the state.

But when the Henry tax review was released on Sunday, it was seen as a bit of an anticlimax.

The document has been sitting on Wayne Swan’s desk for more than four months. We’ve known about some of the big-ticket items for nearly as long: a simplified tax return system, and increased taxes on mining companies (presumably because Kevin Rudd hates Western Australia). We could have guessed some of the other ones: volumetric prices for alcohol. Since January, we’ve even known how thick the damn thing is: 10 centimetres of wonky glory.

But it’s definitely worth paying attention to.

In the relative luxury of twenty-first century Australia, it’s easy to believe government can never fail too badly – what could possibly go wrong with a few tax increases here and there?

But excessive taxation has been one of the great driving forces of history. Bad tax policy has destroyed industries, governments, nations, and empires.

Heavy taxes imposed by the Stuart monarchy led to the English Civil War. Dissatisfaction with Spanish taxes led to the Dutch revolt. Iniquitous taxation led to the French Revolution. And, of course, the cry of ‘no taxation without representation’ echoed throughout the American colonies as they rebelled against England.

High taxes can even be blamed for the fall of Rome. The economic deterioration in the third century AD which left the empire susceptible to external threat was to a large degree caused by skyrocketing taxes. Taxation was so heavy some free citizens renounced their liberty to become slaves, and therefore tax exempt. This was common enough for the Emperor Valens to declare doing so illegal.

In the early Middle Ages, taxes levied on infidels helped spread the Islamic faith – Muslim conquerors made it cheaper for conquered peoples to become Muslim than remain Christian.

Australia has its own violent tax history.

After all, it was excessive taxation which caused the Ballarat miners to rebel. They believed the increase in the price of a miner’s licence was tantamount to tyranny. This was particularly bitter for those who had left the Old World to find liberty in Australia. The Italian Raffaello Carboni wrote that he had travelled “16,000 miles in vain to get away from the law of the sword”.

So those anti-tax strikers at the Eureka Stockade had more in common with modern free marketeers than modern social democrats.

Even some of the great social movements were tax inspired.

In the United States, suffragettes in the 1870s formed women’s taxpayer’s associations and anti-tax leagues. In Australia, the women’s rights activist Mary Lee asked why “Should not those who had their property taxed have a voice in the representation of the taxpayers?”

Excessive taxation shows up in popular culture. The extremely high taxes of 1960s and 1970s Britain gave us The Beatles’ ‘Taxman’. In the Kinks’ ‘Sunny Afternoon’, the songwriters complain “The taxman’s taken all my dough”.

No wonder: the Labour Government in the 1960s imposed a massive 95 per cent “supertax” on high income earners. And the rich did more than just complain. Many, like the Rolling Stones, just packed up and left the United Kingdom altogether.

The proposed mining supertax will only be 40 per cent. But, like British rock stars, mining companies keeping a close eye on their bottom lines will leave Australia as soon as it is no longer profitable to stay.

Tax has an ignoble history.

But many people seem to view our tax system as a series of levers by which Australian society can be directed, and the choices of individuals can be manipulated. Increased taxes could shrink waistlines, eliminate traffic congestion, end lung cancer, and reduce drunken inner city violence.

In this view, taxation is not a necessary evil, but an end in itself.

Sure, the revenue from taxation can be used for good things. That money pays for public schools, the court system, police, national defence, maintaining roads, hospitals, and the welfare safety net.

But, don’t let the worthiness of some spending conceal the fact that the art of taxation is the art of plunder. To tax is to confiscate money which individuals and businesses have legally earned.

And, of course, the government wastes a hell of money too: the government ignored the overwhelming majority of the Henry tax recommendations, but the review still cost taxpayers $10 million.

The government’s new taxes won’t inspire revolution. And, luckily, they won’t leave us open to Visigothic invasion. But take the proposed tax on mining. It threatens one of our most valuable industries; one of the sources of Australian prosperity.

That should be more than enough to worry about. New taxes are a big deal.