Wednesday, August 28, 2013
Local Gubmint receives another planning shock: complulsory 30-year asset horizons
"This is a heedless, expensive and totally unwarranted intrusion into local democracy", he opined.
"For half a century, Local Gubmints have not worried about this sort of expensive overhead. We maintain infrastructure as best we can with the pittance we receive from an uncaring public by way of rates, fees, levies, contributions, charges, and not to mention dog registration imposts and library fines. We are very proud of the fact that we manage to do so much with so little."
When your intrepid reporter reminded the Fool about a string of infrastructure accidents over the years - Abbotsford (leaking storm and potable water, at the top of a clay face), Wellington (leaking pipes at the top of inadequately consented gully infills), the occasional sinkhole when old, brick-barrel sewers unaccountably collapse, the more occasional water-main fountain when the termites stop holding hands, the frequent discharge of raw sewage into estuaries, rivers and harbours, and other small incidents, the Larry was quick to defend the status quo.
"Why", he said, splutteringly, "It isn't Every council who can actually afford to mount a cellphone camera on a child's radio-controlled Cat D9 model, and photograph every last blooming pipe. This gear is Costly, takes teams of highly paid engineers Months to work through the images, and we can never be sure just where the so-called cracks and collapses are when we start digging, so we just start any old where.
We much prefer the time-tested, age-old methods: we simply rely on our trusty ratepayers to drive into the holes or over the slips, or to notice nasty smells or the sudden absence of a key hillside road, they then tell us, and then we blame the dairy farmers for everything."
The interview was, unfortunately, cut short at that point. It seems that the Fool had parked on a double yellow line, had been towed, but the towtruck and its precious cargo had then fallen down a large sinkhole caused by dairy farmers.
We promise to resume transmission once the offending agronomist has been dealt to.
Sunday, August 18, 2013
Development Contributions to be limited
You mean we gotta treat our new residents as Customers?
C'mon, folks!
For years, we have managed to treat them as Serfs, Minions, and Cash Cows.
We'd like to keep up this proud tradition.
By inventing ever yet more Artful (pun, geddit?) charges, fees, levies, contributions, and please note I did NOT say back-handers.
And also please note that None of this affects Rates up till now! Because our elected representatives (we send 'em a postcard each Christmas to make them feel a bit noticed) keep an Eagle Eye on the Rates roll-up, and it's darn hard to get anything clever in there.
So we just have all these other revenue buckets - a one-liner on the Annual Report, if'n' yer really lucky and we don't hide it all in a Note to the Accounts! "Other fees and charges' is the name, and there's so much in there that the poor Councillors (who are not, I must confess, the most financially literate bunch in the burg) just swaloow it whole. They probably think it's all Parking Meters or something.
And we have had a Glorious Tradition (well, decade, really) of accumulating yet more costs for which we need Revenue Streams - Rivers, actually. Buskers, Community Development graduates, City Planners, MUL-Measurers, Business Development Assisterators and a host of other Vital Individuals, who, BTW, all need paid next Thursday.
Someone's gotta stump up - and who better than the first-home-buyer, who is so darn grateful to get their own leetle Castle that they'll crawl over broken glass to kiss their bankster's cheeks and sign away their next thirty years of discretionary moolah.
Why the poor suckaz - whoops - I mean these Fine Upstanding Citizens (we have a TLA for them but that's BTW) don't even realise that (as Mike Greer has said re Christchurch) $75K of their new house and land costs is solely down to the Council - we salami-slice it and disguise it sooo well. We Certainly don't give 'em a detailed itemised invoice....
But, and I give this Government clear notice - if we Have to start doing stuff transparently, then Rates are Gonna sky-rocket. As we are forced to disgorge all the hidden revenues outta them hidden Buckets and put 'em in Rates.
Well everyone will know who to blame - that's right - the Government!
Like I said, fair warning!
Well, can't hang around all day justifying what we've done since time immemorial, to you bunch of picky inquisitors.
Besides, I can already smell freshly minted Plans in that there Inbox - time to Have some More Fun! While we can....
Byeeeee.
Sunday, June 23, 2013
New Christchurch International Convention, Gambling and Pleasure Centre Announced
'We are pleased to have been able to secure the services of this prestigious international cartel, for our fair city', Sir Very said by way of introduction.
'Not only are we going to enjoy the patronage of a vast number of international gamblers, convention-chasers, organisers, and 1-percenters, but we have been able to negotiate a number of additional benefits.'
' For a miniscule 10% of the facility's turnover, the Yakuza-BurstRail part of the consortium will push through an Airport-CBD light rail system which will incorporate the much-talked-about University-to-CBD link'.
'So, not only will international playaz be able to whizz in and out, as it were, but the fine young students of our esteemed Halls of Learning will be able to partake of the multitudinous delights of this facility, and perhaps to pay off part of their vertiginous student debts via a flutter on the tables, or of course by taking up one of the many employment opportunities offered. Waitpersons, croupiers, security, IT, chefs, drivers and many other menial if not actually horizontal positions are envisaged.'
'The bulldozers for this rail extension are due to start Thursday next week, so if you are a Fendaltonian, and the house next door suddenly crumbles before the onslaught of a large yellow machine, you'll know what's going on. It's called ConsultationLite.'
'The rates, employment, choo-choos and general ambience offered by this proposal were simply too good to walk away from.'
' So we haven't.'
'Enjoy!'
(I know We will - we are all Honarary Life Members)
Where we sit....
But we don't and never have had a 'free market' - it's always been a Mixed/Hybrid beast, and the early religious restraints and latterly Gubmint codes and regulation, are needed to keep everyone honest. Ish.
Markets work just fine and have done since the dawn of trading around 4000 years ago: they are nothing but a switchboard between people with something to sell (like the copper miners at Great Orme in North Wales) and other people with something to sell (the traders from the Mediterranean who travelled all the way up there with foodstuffs in amphorae), the former lacking what the latter have in surplus and vicky verser.
A massive plus in markets (gentle commerce, in Adam Smith's phrase, recycled by Pinker in ''Better Angels') is that they innately if slowly build mutual trust and kick off a Civilising Process. We're at the far end of that now (see below, it is possible to discern a De-civilisng process at work in our fair land...) so all this progress is somewhat taken for granted. But the main alternative, which tends to be control by a (male, quelle surprise) elite, by fear, violence, repression and tyranny, has been the default setting for most of modern humanity's (last 50K years) history. And it is frighteningly easy to push that 'Factory Reset' button: PNG being a current example.
Culture has almost everything to do with everything, as any competent manager will attest. A common case-study in MBA-land is the new manager, determined to change culture in a business, firing, fairly much randomly, 10-20% of staff to kick-start the change effort. It puts down this marker: 'Things are gonna Change around here'. But what we have in funky l'il Godzone is a set of two cultures vying for the minds of the young.
There is or was a much older, formerly better-civilised European-derived culture which in its heyday valued adherence to widely held norms, reinforced by a religion that had itself shed most of the excesses yet retained the ability to bind (religare). It valued deferral of reward, hard work, a spiritual journey based on an individual's response to wise books, and a self-introspection that gradually but firmly expanded the circle of empathy, squeezed out excesses like torture-executions, rewarded simple states of being like marriage and the delight in children, and mandated fair dealing and trust in commerce.
But this culture cannot now be said to exhibit much if any of these qualities: viewed from that high point, it can be said to be degenerate, hollowed out, unattractive, and failing.
The other culture is of course indigenous - a communal, pre-literate, tribal culture which has been propelled over 10-15 generations into close and unrelenting contact with the above. Its historic version values Tribe over Other, strength and dominance over compassion, and in general exhibits all the hallmarks of the Factory Default setting which we all came from. For a primer: Nicholas Wade's 'Before the Dawn'.
The mixing has been as one would expect, very patchy. We are left with a decayed and decadent Euro fragment, an abiding and unrelenting distrust of religion or indeed any other dominant binding philosophy, a present-centred mind-set which steeply discounts the future, a Partner culture with distinct tribal reversion tendencies especially at political level, attitudes generally which tend to favour dominance and lack of empathy over the alternatives of gentle commerce and trust, and a financial utter dependence on intensive food production for a newly dominant China, itself flexing international muscle, and approaching carrying capacity in order to do this on our land.
So, 'culture matters', and 'incentives matter'.
Tax only affects the latter, and I somehow do not think that fiddling with IRD codes and deciding whether and how to tax who for what, is gonna tackle the wider issue of Culture - what we do around here.
Now, if only it were as simple as firing 10-20% of the population , to convince the rest that "Things Have Changed'.
Bob Dylan sang:
'People are crazy and times are strange,
I'm locked in tight, I'm outta range,
I used to care, but
Things have Changed'
I don't think it's that simple. Especially not on such a small set of islands....
Tuesday, June 11, 2013
What Local Governments Do
Which is (e&;oe):
- restrict land supply against a rising demand thus causing ECON101 price rises
- as the first side effect, handing a luvverly CG to a selected lucky few landowners
- as the second side effect, watching as that vastly increased land price for undeveloped land instantly transmits itself across all comparable developed land plots in the adjacent market, thus multiplying the initial if localised CG thinly across that entire market.
- as the third side effect, handing banks and financiers a vastly increased interest revenue stream, as eager or desperate buyers borrow to buy said plots (existing or new)
- effectively lock out new entrants to the housing market
- effectively transfer development to the many thousands of lifestyle blocks outside the MUL/RUB or other squiggle on a map
- levy fees, contributions and other costs upon any and all attempts to develop the land or densify existing properties
- add multiple cost layers to any attempt to develop, densify or otherwise improve properties in a way which attracts a resource consent (a sampling: pre-application consult, require engineers/surveyors/feng shui consultaterations, inject time into processes, impose conditions during the process)
- display a breathtaking ignorance of such basic economic fundamentals as supply and demand, or the time value of money
- make decisions, plans, policies and processes which (what else) ignore economic fundamentals
- act rilly, rilly surprised when one of the following occurs:
- massive public opposition to cherished policies and plans
- first home buyers throw in the towel
- developments Unexpectedly are cancelled or deferred (Always the U-word!)
- people don't want to live where and how the Planners want them to live
For the life of me, I just cannot imagine why a Gubmint would want to clamber in and alter Any of the above.....
Monday, May 27, 2013
Modular Housing, Factory-produced.
Benefits of real production-volume and high-design-quality builds of this sort would be:
- Real QC. On the factory floor. Instead of which we get 'Inspections' on site by underpaid, ratty, barely competent TLA staff, who do however have the fulll power to halt the job until that weather seal or bracket or widget is tweaked, adjusted, or otherwise have Yet Mo' Cost sunk into it. And the Next 'Inspection' will be by a different minion, with different ideas, but just as much Power to Obstruct.....
- Real assembly, by staff who can be closely supervised, timed, who use highly automated tools, and a whole lotta CNC wizardry. Instead of the slapped together on site approach, by drug-addled hammer hands, loosely supervised, but of course wearing HiVis, and wearing Approved Safety Hats (tin-foil lined on Karamea and Waiheke jurisdictions) and Steel-capped Boots. Talking around with earthquake repair guys, it seems that having floors 30-40mm out of level, gibbing ceilings that are the same out of square, etc, is par for the course in new on-site builds....
- Real design. Conduits and designated ducts for all services (black/grey/potable water, electrics of various voltages (solar, 12vDC for marine-style LED's, 400V or 230V AC for appliances, workshop etc), gas, refrigerant (for heat transfer from fridges, driers, hot water etc to where it's needed) and so on. Maintainability is just so poor (because not designed in) in most current housing. Doesn't need to be this way.
- Real cost advantages. High-volume, yet customised production lines. Low, but highly skilled, labour requirements. Low margin possible if enough volume passes through. Possibility of deals with financing to provide an end-to-end type cover, and cut out the plethora of middle layers (ranging from the TLA Pre-Consent Discussion session (un-needed), through architects (replaced by CAD design, imported electronically), quantity surveyors (replaced by a BOM), and of course those Hammer Hands (and their local Tinny House).
But this approach will be thwarted, obstructed and outright blocked by the usual suspects:
- TLA's and employee guilds, who are not gonna let the real 'inspection' pass out of their clammy ineptocratic hands, into whole-product factorys' certification....
- TLA's who see a luvverly lucrative revenue stream, produced by demanding Extra Time Everywhere at an Exorbitant Hourly Rate, threatened.
- Building Standards wallahs, who will have about as much to do with eventual housing quailty as happens with vehicles or boats (Peter Cresswell's favourite example)
- The materials cartel, who have a really nice lock of the individual-component market, and who will find ways to either take over or block any such real 'competition'
- I'm sure eager common taters can thinka more along these lines.
So I have a confident Prediction.
Nice thought.
Won't Happen.
Thursday, May 23, 2013
A Tale of Two Scrapers
First up, I was working for the Copulating Spiders - the ol' MoW insignia. The gear was probably 20+ years old (in 1972-3), and instead of a proper Cat tow-pin between dozer and scraper, MoW being the cheapskates they always were, had thoughtfully supplied a shortened piece of truck axle. Didn't quite fit the hole - rattled around a bit.
A fully loaded scraper could hold around 15-20 cubic metres of spoil (roughly a 3x3 floor pan, and could be crowded in good stiff clay to 3+ metres high) so I guess total weight could run 35-45 tons all up. A twin-drum winch on the dozer needed for the two operation cables: one for blade height, one for apron trim and material eject/spread. Dozer was a 3T series Caterpillar D7 - see one at work here.
The usual round (this was topsoil stripping, to a temporary heap) was
- run the dozer in high gear to the pickup,
- change (on the fly, yes, possible) to low,
- drop the blade into the material,
- let the material crowd (if it would) until it spilled over,
- raise the pan to travel position,
- crawl back to the heap and up it,
- wind the dump winch which first raised up the front apron and let the material out, and then pushed the whole rear wall of the scraper forward, ejecting all material.
- Bring 'er back to travel mode, high gear, off the heap,
- wash, rinse, repeat. 50-100 times per day - an average round was perhaps 3-5 minutes.
Working this gear gets quite repetitive, so the old mind tended to wander.
So it was, coming off the heap in high gear, with quite some surprise that I was awakened from my reverie to hear both winches screaming their heads off. Turned around to ascertain the cause.
Oh dear.
The tow-pin had sheared. The scraper was in two pieces, quite a few metres back from the accustomed position. The cables were running out against the brakes, hence the screams.
The scraper, empty but running down a 20-degree slope, had promptly dug in the towbar to the ruffled surface of Gaia, run clean over it tilting it around 180 degrees so it ended up facing backwards, and comprehensively foobarred the ball joint that joined the front set of wheels plus towbar, to the rest of the scraper. Not a good look. A two-piece scraper. Here's a one-piece....
What to do?
Uncouple the cables from the winches (hammer and wedge), run back for the dozer blade and hook it on, string its cable onto one winch, and proceed to move the pieces out of the way of the heap.
Then confess all to the bosses, but point out that a Real Caterpillar Towpin would be henceforth a Good Idea.
We ended up (days later, this was Gummint work, y'unnerstand) going way out to the backblocks of Fortrose, and bringing back another even more ancient scraper, with which I (lopsidedly - darn thing had two different sized tyres on the back, which controls cutting attitude) completed the earthworks.
With (what joy!) a Real Caterpillar Towpin which appeared, along with the immortal words 'Let's see if you can manage to f... This one Too!'
A little addition, about Elfin Safety.
The old D7 had zero electrics: it was a hand-crank petrol pony motor start.
But the crank handle was vertical.
So, the Elfin Safety issues to start the beast:
- stand, in yer gummies, on an iced-up top track, in a typical Invercargill frost.
- prime the pony motor and offer up a small prayer to the appropriate deities
- Insert the crank handle from on top of the bonnet (about chest height IIRC)
- Pull it gently around to compression on the pony motor.
- Take another purchase on the crank (no thumbs around the handle...) and mutter another smaller prayer.
- Pull the crank smartly towards you.
- If lucky, pony fires and runs. Trim it, engage the clutch and turn over the main donk.
- If not lucky, pony backfires and pulls you straight into the edge of the bonnet (curved, fortunately).
- If really not lucky, bounce off bonnet, slip on top track, clobber appendages on the way down to the cold hard ground a metre below.
- If inclined to Push the crank to start, expect the backfire to merely throw you off of the track. No bonnet edge. Take yer pick.
Ah, and they call 'em the good 'ol days....
Wednesday, May 22, 2013
Ancient History ( a slice of a younger , machine-operator Waymad)
Maybe.....
A much younger Waymad built the rough levels in a section of an entire subdivision (Newfield - the hilly bit, Invercargill) with a Cat D7 and a cable scraper (which I broke in half, but that's a story for another day.) Yes, there were Plans - and a few sticks in the ground, and the occasional surveyor with a dumpy, but nothing a tech drawing refugee from the local Technical College could not handle. Strip the topsoil out to a temporary heap, cut out the main road and footpath levels to 20mm or so, level the sections, respread the topsoil on siad sections, done. Services, K&C etc, laters. Not a lot to it.
Te Anau useta be grass verges and gravel tracks, off the main drag. Making streets was a two-man operation: a grader with towed vibratory roller, tractor to buzz around, sweep and tow, contractors for K&C and gravel, sealing last. Services (water only) already there. Not a lot to it.
We useta seal 20+ miles per year, from a starting point of average County gravel roads. One rough-cut grader, one do-everything-else grader (Cat 112, me), contractors for gravel, make yer own topcourse from screened river run and clay from a likely local roadside bank, excavated with - what else - a grader. No plans. No surveyors (a level bolted to the front cab rail in the graders was all we ever used). No engineers (except if they fancied a long drive into the sticks, which was not often). Experience, feel, a taste for the right clay, and the knowledge that every single person ya met was a ratepayer, who Paid you, and who Expected Service. Not a lot to it.
Them were the days, so you can see why I get a little excited about the current ways: 12-tonne diggers everywhere, mostly at idle, Elfin Safety up the wazoo, a whole lotta jobs for the unskilled, and 'a lot of planning needed for a subdivision'.
Maybe.
A lotta Cost fer a subdiv, more like......
Friday, May 17, 2013
Lifestyle Blocks
RPM - check.
No dust on needle - check.
Lower needle - check
The popularity of lifestyle blocks is a direct response to the relative unavailability of, and exceedingly high price of, serviced urban plots.
There are roughly 175,000 lifestyle blocks scattered around the larger cities in NZ.
Auckland - every direction.
Wellington - the Wairarapa,and the West Coast (Plimmerton to Foxton)
Christchurch - all directions
The agricultural production from these blocks is negligible.
The commute distance for these blocks is typically 50-80km.
The average lifestyle block is of the order of 1 to 3 ha (a typical urban plot is 0.06 ha or 600 sq m)
The average lifestyle block is serviced as to power and water, but disposes its own sewerage on site.
Few lifestyle blocks have public transport connections in a reasonable distance, of a type suitable for business commuting.
Most lifestyle blocks therefore have heavy dependence on private, fossil fuelled vehicles, with low vehicle occupancy.
And yet most common taters wail about the Weevils of Urban Sprawl......and uphold the Sanctity of MUL's, RUB's and other squiggles on Planning Maps.
Funny ol' world, innit.
Thursday, May 16, 2013
Green reaction to Whiteware Initiative
"We absolutely oppose this initiative, for seven reasons.
1 - the whiteware is made of plastic and metal, substances that don't occur in that form in Nature.
2 - the whiteware is foreign-made and denies Aotearoans the chance to make their own (from substances other than metal and plastic, of course)
3 - the whiteware is dangerous - there have been many - well, dozens, OK, one in Aotearoa - fires and explosions caused by the operation of these devices
4 - the whiteware uses electricity, which now has to be bought from Rich Aotearoans since the MRP float, further perpetuating the inequalities in this allegedly egalitarian land.
5 - the whiteware is to be made available for private usage, which denies the possibility of community, joint or shared use to the recipients.
6 - the whiteware is to be financed using dollars which have been earned by the export of Dairy, Meat and Oil - all products which to be perfectly Francesca we would all be better off not producing.
7 - the whiteware is in any case unnecessary - there are many rivers throughout Aotearoa full of Large Stones , which in combination can be (and are to this day in many, many countries) used to launder clothes quite satisfactorily.
There are many, many more reasons, but we regard Seven as a Particularly Significant (if not Magical) number, so that's it.
Questions?
Saturday, March 09, 2013
Rates required
The political-dynamite bucket is Rates Required, because the media and the commentariat know exactly what that means in economic terms: the Council's Long arm, in Your short pocket, after your stash.
So they will move heaven, earth (and every other plausible line item which requires funding), into Some Other Bucket. Leaving Rates Required as a high but explainable figure.
The trick is to keep the punter's mind on Rates Required, because the machinations in 'Fees and Charges', or 'Contributions', or 'Other Revenue', then slide straight under the radar.
So Councils will not stop charging these ridiculous figures per section or lot, because they have ineptocrats to house and feed, plans to write for other ineptocrats to read, and all safely out of the sight of real public scrutiny.
It's a bit like the Bankstaz. Run into a bit of an issue, create an off-balance-sheet vehicle of some sort, shift the problem deals into it, and continue to pass audits and stress tests.
Shell game, really, but there you have it.
Those Fees, Charges, Contributions, Levies etc are all input costs to ratepayer purchases - just at several removes. In manufacturing lingo, Raw Materials, not Finished Goods.
But given that these inputs wind up on section and lot pricing (and then - the bywash effect - feed straight back into Existing Section pricing - a nice little CG for the householder who can then borrow against it or cash it in and light out for other parts), it is still the Council's long arm, in your short pocket.
Councils are, quite simply, economically clueless in this area. And they have completely foobarred the housing and residential land markets....
Sigh.
Wednesday, March 06, 2013
Farming and Infrastructure
Parts of the Canterbury Plains (e.g south bank of the Waimak from Annat to Courtenay) have been cropped intensively for a century and a half, and are still going strong. Te Pirita was Strugglers Flat for that same century and a half until the Selwyn Plantation Board, tired of the ETS hoo-ha, mulched every single one of their downland planations, sold it for dairy, and with the application of mucho dihydrogen monoxide, the dairy farmers made those dry stony plains Verdant.
'Infrastructure' has a surprisngly long life. There are Roman drains still running under York Minster, and much of central Christchurch horizontal infrastructure dates back to the efforts of the Christchurch Drainage Board in the early construction period 1875-1889. That's 130 years give or take.
So when learned common taters worry about 'intergenerational equity' and how it is sooo last-century, let's just recall that 7 generations of Christchurch have benefitted from one concentrated burst of 19th century drain-laying.
Friday, January 25, 2013
LG gets a long overdue Purpose Re-definition
If I was still in LG wiv my cold hand on the financial tiller, I'd be looking at the Social and Cultural hangers-on and thinking - Gosh - how long am I gonna see your well-remunerated faces 'round 'ere for? Being as how yer Statutory Purpose has been negatorated? In fact, I'm not sure I'm allowed statutorily to Pay y'all next week!
As Bob the Dylan sings 'Things have Changed' - (written and performed for the film 'Wonder Boys') Oh, the new LG purpose: (I've just kept the straight definition, there's a lot of inserting and replacing as it's yet another 2002 Act Amendment):
“(b) to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.”
and 'good quality' is defined as:
In this Act, good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions, means infrastructure, services, and performance that are— “(a) efficient; and “(b) effective; and “(c) appropriate to present and anticipated future circumstances.LG readers - in the words of the aforementioned:
"People are crazy and times are strange
I’m locked in tight, I’m out of range
I used to care, but things have changed"
Wednesday, January 16, 2013
How to Fix the Housing Mess
- Stop the local Gumnut racketeers. Roll them all the way back to reserve contributions in land or cash, and no other levies or new-section imposts. Because every such section-cost input, has to be paid for by householders, from a mortgage, with interest. The message is slowly getting through, but not to the bureaucrats, who quite rightly perceive that cutting off funding is cutting off their oxygen. I delight in making a submission every year, using fairly much this language, to the local Council's Draft Annual Plan, and demanding to speak to the Council in person. Does absolutely no good, but it puts a non-bureaucratic view on public record.
- Restrict Local Gumnuts to core specified activities in infrastructire provision. They've gone hog-wild over Social and Cultural Wellbeings these last 10 years, and their costs are unsurprisingly through the roof thereby. But in Other Thasn Rates cost trees, natcherally, because we cannae have a Rates Revolt, can we. So Rates are wound back, and Other Fees and Charges reach for the sky....Release the buskers, event planners, community liaisers, cultural advisers to better employments such as factory hands (building houses of course, see below) with a massive productivity gain/deadweight decrease. But do expect some blowback.
- Find a way to tune house-related lending: LVR's, capital ratios, whatever. Cheap credit just fuels the fire when supply is so restricted.
- Do away with zoning. This causes massive MUL land value distortions, and as the rise in capital value is untaxed once yer local friendly Planner does the next squiggle on the map to incorporate Your bit inside the red line, better to ban map squiggles for a generation or two. As Hugh P notes, a direct result of MUL's is the rise in rural lifestyle blocks, which typically grow only ponies and thistles, and occupy far more physical area than the relaxed or abolished MUL could have ever consumed at urban density. An Unintended Consequence....
- Yes, a Tobin Tax - stamp duty, CGT or something to increase friction in sales, would help. But results around the worls are decidely mixed, and one has to shudder at the thought of Yet Mo' Gray Suits needed to be administering the whole shebang....
- Light a fire under ComCom re the materials duopoly, or heck just tweak the duties on said items, and import a few dozen shiploads of Chinese gib or US cabinetry, tools, fittings and doodads, and bankrupt the sods.
- Do away with local Council planning and inspection, and use a uniform, centralised mob. The differences between jurisdictions are crazy, drive builders and engineers mad, and raise costs as common solutions cannot easily be created, disseminated and used.
- Factory-build houses and drop-ship them to sites. Only foundations ever need to be truely localised to site and circumstance. Once you have a platform anything on top should be assembled in QC-controlled spaces, by anyone but drug-addled hammer hands, and picked/packed/shipped/assembled by factory certified putter uppers. This will drive unit costs through the floor, and will cause a great winnowing of the Exterior Decoration crew - architects and designers - into more productive employment. Factory hands, what else. Win/win/win/win, I'd say.
- Wind back the LBP nonsense (the factory certification should cover all competencies) because it's an overreaction and an overhead and has driven many older craftsmen right out of the business.
- Mandate eaves, pitched roofs, external guttering, and a design ethos which allows easy access to plumbing and electrics for repairs via access panels, conduits, etc. Lack of these features causes unmaintainability, lack of watertightness, and other woes. The guidebook here is Stewart Brand 'How Buildings Learn (what happens after they're built)'. Exceptions can be permitted only under a notified resource consent process (make the buggers really suffer....)
- Institute a central photo database of every new build showing the as-built location of services (wiring, pipes, etc) before walls or foundations are skinned over. Index photos to site/floor plan and elevations. Huge help in later additions, maintenance etc. Keep this as-built record up to date (yes, I know, counsel of perfection....)
Not one of these is politically possible, can withstand the deadweight of custom, guilds, unions and convention, or can be defended against the Legal eagles of said duopolies and assorted corporate interests. But it was a fun thought experiment, hey?
Thursday, November 29, 2012
Economic madness in housing policy
Tribes...
Thursday, November 22, 2012
A common tater complains about Housing Material Costs
Tuesday, May 15, 2012
Councils and Cluelessness
Monday, March 19, 2012
LTP season is upon us again!
I generally ask some pointed question: like:
•I see you have budgetted for X million pesos revenue, from Development Contributions. Please set out the average revenue per section expected, segmented into residential, commercial, industrial and Gummint.
•Please provide some economic commentary about these figures, given that they are significant inputs into section prices, and coming as they do early in the development cycle, attract significant developer financing cost additions prior to section sale, and are ultimately paid for by the incurrence of household, public and business debt.
•Please provide commentary about the revenue risk implicit in these averages, focussing on the most likely such risks: development flight to cheaper jurisdictions, housing inflation, buyer resistance, disadvantagement of low-income new-house purchasers.
•Please provide a table showing comparative Development Contributions for adjacent jurisdictions, for equivalently sized Councils across New Zealand, and against a New Zealnd average.
Y'see? A statement (on public record, no less), an education for Councillors who are often shocked! Shocked! to understand just what their faceless bureaucrats are inflicting on anyone enmeshed in their processes, and (best of all) a chance to stand up in front of the Council and tell these hapless fools just exactly what a dire effect they are having upon their local economy, residents and businesses.
Now, the Open Season for the LTP's is again upon us. Happy Hunting!
Tuesday, February 28, 2012
Licensed Building Practitioners
There simply won't be any point in the middle-level type of extensions, alterations etc. By the time you've stumped up for the engineer, the LBP'ed foundation guy, the LBP'ed structural builder, the LBP'ed interior carpenter, the LBP'ed roofie, the LBP'ed exterior plasterer, the LBP'ed brickie or blockie, the LBP'ed Site Manager, the building consent fee, the inspections fees (one per trade needed!), not to mention the materials (remember them?), the supervisions, the architect if'n yer really stupid, and the resource consent if yer neighbours get a fit of the Nimby's, why, it will be much simpler to give the old dump the flick and buy something closer to what you actually want.
I think this is called 'Unintended Consequences'.
Monday, February 27, 2012
Councils and Time Value of Money
1 - no revenue reponsibility. Council rates, fees and levies are non-contestable. They can be pencilled in at budget time and arrive on schedule. Guaranteed revenues mean that all Council staff have quite literally no connection with their financing. It is simply taken for granted, like the sunrise.
2 - no concept of time=money. Councils can inject time into processes without paying any monetary penalty. Their hapless customers still have to pay their mortgages, working capital overdrafts, consultants fees and staff. So every day that a Council injects into a process - has a direct and proportionate cost to the affected customer. Heck, Councils even 'stop the clock' when counting days elapsed for a consent. But the customers' Bankers don't.
3 - Council staff are answerable only to the CEO, and the CEO is a Council's (in the elected sense of members around the table) only employee. So there is no direct connection between anything which Councillors might think, want, or do, and the effect on staff. For all practical purposes staff are completely immune to Councillor influence.
So if the staff continue to with-hold, delay, defer, ignore or otherwise foobar the rebuild, just exactly what can be done about it, given all of the above?
Tuesday, February 07, 2012
Housing yet again
1 - cost of land.
2 - cost of building - and as NZ is well under scale, and hence has hopelessly overpriced materials: it's still worth going to the States and filling a 40' container and paying GST plus duty on the contents: most materials are around 20% of the NZ converted cost.
3 - time taken - as time=money - the 'carry' can be significant even for a single build.
4 - credit availability and terms.
5 - Household income levels
The stoopid Councils contribute directly to #1 and #3, the craft nature of building in NZ and the lack of scale accounts for #2, and Gummint policy affects #4 and #5.
In 2001, in Christchurch, it was possible to buy a doer-upper for well south of $50K, in the non-leafy suburbs. By 2003, the same house was x3. What changed?
In 2002 the Labour Gummint, trying to be nice to the hopeless, introduced a guaranteed $100K credit line. Qualification for this was simple: 'can you fog a mirror?'.
Instant result in Chch - every single price in shall we say the structurally challenged house class went up overnight by, spookily enough, that same amount.
So there's the Gummint's little push to unaffordability. #4 shows that easing credit adds to prices. Whodathunk?
And finally #5: the rise of credentialism, soft degrees like media, art and music, and the constant repetition of the mantra 'education gets you up in the world', have all lead to a situation of inflated expectations, but same old employment choices. And now the GFC has commenced a winnowing of the crop: only the truly useful souls can look forward to even a moderate income: the hopeless are condemned to menial jobs or the dole, and as has been the case throughout human history, the well-off are quite capable of looking after themselves. Average incomes are static in nominal terms, and falling in real. As Glenn Reynolds notes:
"The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay in, the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them. One might as well try to promote basketball skills by distributing expensive sneakers."
Oh, and there is no political way out of this, because there are more Tax Consumers than Tax Producers, and the Consumers can, have and will outvote the Producers when push comes to shove. The middle class vote has been purchased by WFF, and despite their occasional unease, they'll stay bought.
So there in a nutshell is the bind we're in. And as any solution involves a choice between the hard way out, and the really hard way out, I don't see much will move until it has to. As the saying goes: what cannot go on forever, won't.
Sunday, February 05, 2012
Urban Land prices in GodZone
I'm an old grizzled ex-County Treasurer who actually used to administer these babies in the good old days before the dopey Sandra Lee LG Act 2002 injected 'Social and Cultural Wellbeings' into Councils spending arena.
DC's were really about public open space: land, reserves and the like. A simple cash amount, which was held in trust and applied only to reserves, was the norm, and/or a parcel or three of land set aside.
Nowadays, DC's have an incredibly complex calculation: Household Unit Equivalents (bit like the the Twenty' Equivalent Unit (TEU) measure for shipping container space) for almost everything a Council could conceivably dream up cost requirements for.
Recall that every legal human activity can fit within 'Social and Cultural Wellbeing', so naturally, there are Community Development Organisers, Events Planners, Reserves Consultators and dont even get me started on spatial planners, zonerators and other failed architects - all to be fed, housed, and their reports to each other and to the Council to be read and discussed with a straight face. All to be 'contributed' to....and then there are 'hard' spends like roading/water/sewer/drainage incremental impacts to be funded
The net impact of DC's (e.g. for an upcoming major Chch subdivision) is huge - $70K/section. And this impact is upfront - pay now, and this adds at the earliest stage, almost, to the hapless developer's carrying costs ('the carry').
At a commercial credit line rate (making the maths easy) of 10%pa, and a conception-to-first-sale time of 7 years, the rule-of-72 says that that $70K is now $140K. Yup, it has doubled.
See now why land prices in urban subdivisions are sky-high? Add everything together, recalling that those costs earliest on the list generate the highest carrying costs:
- land purchase
- 'carry' on land purchase cost
- survey and consents
- 'carry' on survey/consenting costs
- DC
- 'carry' on DC
- physical land development - civil works
- 'carry' on civil works
- sales and marketing costs
- developer margin
- and I've probably left a few cost items out....
and then ask:
1 - why anyone would be in this game?
2 - And for those brave enough to be there, why section prices are where they are?
The answer to 2 is - because of zoning (original purchase price inflated), the Social and Cultural well-beings (DC's inflated) , and the fact that Council staff have no concept of time=money ('carry' inflated)
After all, the Council staff don't have to carry the 'carry'.....so why not let that consent dawdle in the in-box for another month or six?
Now if the Wellbeings were deep-sixed, yer jest might have yerself a whole new ball game....keep watching!
Tuesday, January 24, 2012
Christchurch - Strangled by CCC staff
But the regulatory areas such as planning and consents are simply getting in the way of everything. Spatial Planning is a failed concept - the RMA was meant to gauge proposals by reference to their effects, not their zoning. But it was captured early on by the zonerators and old-school town planners, and has never recovered.
Arguably, this crew have, by strangling land supply and imposing lengthy, adversarial processes on developers, designers and builders, added multiple layers of cost to homes, businesses and the local economy.
And the tightening of residential construction certification (DBH's Licensed Building Practitioner scheme) is another well intentioned but costly exercise: consider that of the 90% of Chch houses which are fine to carry on living in, fully 2/3 were put up by (shock, horror) completely uncertified people! Gadzooks! How can they now live with themselves?
Against this background of staff who blindly pursue failed techniques, causing cost wherever they cast their gaze, impervious to the time value of money, secure in their little fiefdoms, and protected by layers of certification, professional guilds and stroppy unions, how is a call to 'unity' amongst Councillors going to make the slightest scrap of difference?
We're living 'Yes, Minister' - and compulsorily paying through the nose to fund this incredible debacle.
And folk wonder why the pedestrian option - vote with yer feet and escape the CCC and its parasitic staff - is increasingly attractive?
Sunday, December 18, 2011
Spengler hits another one out of the park
"the transformation of universities into Maoist re-education camps with beer kegs"
I'm struggling thorough Goldman's 'It's not the end of the world, it's just the end of You' and finding it a little too theistic but the learning, the breadth and the one-liners are amazing to behold.
Friday, June 03, 2011
Arab hunger
Tuesday, May 24, 2011
Mushy Peas
Disclaimer: I did not have English Peas for my evening meal.
Tuesday, May 03, 2011
Has Bin
AQ had been more use to the Iranian cause of late, and the Saudis took a dim view of That, as the Yemeni buffer zone to their south is visibly disintegrating by the day. And as the Saudis both spawned and bankrolled OBL, they were certainly in a position to decide when the thread holding the sword over his head, should be snipped.
Yer won't hear much of this in the MSM of course. They're still veering between horror and delight. And there's no body, so the conspiracy theories are already running hot. Panem et circenses....
Friday, March 25, 2011
Reynold's Law and Christchurch
The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle-class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle-class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay, in the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them.
One hopes against hope that, in rebuilding Christchurch, Reynold's Law is duly observed. After all, it's not hard to guess that, in order to rebuild in the first place, the efforts of builders, quarrymen, drivers, surveyors, engineers, geologists, welders, foundrymen, miners and roofers, are going to count just a tad more than those of aromatherapists, journalists, garage bands,
But a glance at what's being churned out of our Places of Higher Learning, at great unit cost and a swingeing student loan burden to add to the frisson, and one must temper one's hopes with reality. As another of Reynolds' pithy references has it, the Higher Education Bubble is in full swing.
"...setting aside the technical professions (medicine, engineering, etc.) the cost of a bachelor’s degree is exploding just as its value in the marketplace is declining"
And a more sobering appraisal here...
Because, talking of subsidizing markers rather than building traits, our glorious Christchurch City Council has had an excellent track record of subsidizing stadia, community development advisers, flower festivals, and assorted other accidents.
One hopes aginst hope that Learning will Occur.
But the CCC tends to an Absence of Essence.
Saturday, January 29, 2011
Artists as canaries in the coal mine
My own favourite artists in music are Tom Waits (check this clip for a wonderful mixture of vid and aud), Bob Dylan, Chris Rea.
If you look at Dylan's 'World Gone Wrong' cover notes from 1993, my take is that he spotted the coming shitstorm and nailed it in a few characteristically obtuse phrases, ostensibly about the music. Same with Tom Waits - Bone Machine and The Black Rider, also from the same period. Chris Rea - Road to hell or Expresso Logic.
All these guys sensed something in the atmosphere, and reacted in their own ways. Not necessarily in a form that could be consumed instantly, or even comprehended at all. But in the 20/20 basilisk stare of hindsight, man, did they all make sense.
Sunday, September 05, 2010
Sitrep from Chch's Untouched North-east corner
Key factors in success of this area:
* underlying strata not liquefaction risks
* recent (last 15 years) build to decent EQ codes
* easternmost part = furtherest away from the quake epicentre
So, chaps and chapesses, don't believe the MSM one-disaster-affects-everyone coverage.
The effects of the quake are in fact extremely variable. The known areas for liquefaction - around the rivers and Estuary, the peaty soils round St Albans and Papanui, and some sandy lenses over old swamp - are the ones affected. And the infrastructure damage to sewer and stormwater (pipes have literally been floated up through the road above) is a function of water table, soil types and amount of shaking. Interesting to drive through Tumara Park (between Burwood Hospital and Parklands) and see that a radius around the Travis Swamp has suffered pipe float and surface cracking, but the rest is quite simply intact.
The estimate of 20% is simply crap in terms of habitability. Chch has 160K households, so 20% is (counts on fingers) 32K dwellings. Yet only 200 people (at 2 per household, that's 100 households worth) overnighted at welfare centres. So there's an indication of the disconnect.
20% with Gib-board crack plastering needed, yeah, probably.
And the damage that Is there elsewhere is from the usual suspects: unreinforced masonry, lime-mortared bricks, untied veneer walls, and foundations that in the old days were just bricks tossed into a ring in a shallow trench and mortared over. No surprises.
The silver lining is that we won't have to worry aboot the predicted recession in the commercial construction industry, and the 20K job losses. There's a Lot of infrastructure to repair, and that will take months.
(Another decent jolt as I type, but blogging as I am in front of the log fire, with a cuppa joe at my side, and power, water on since 11 am yesterday and the camping loo deployed to ensure we don't add to the infrastructure loading, why worry?).
And a very high percentage of Chch households will be doing exactly the same thing.
Saturday, September 04, 2010
Rock and Roll by the sea
Total damage at the WayMad household: one preserving jar on the pantry floor, and (boo hoo) a snowboard fell across the bumper of the Big SUV. A Paint Scratch! I'm devastated.
But to judge from the breathless nature of much of the news coverage, you'd believe the whole of Christchurch is sleeping under the stars tonight. As looters carry away all the Good Stuff from trashed stores. And sniffer dogs look for Survivors under the wreckage of collapsed CBD verandahs (I swear I've seen the same dog's-bum clip at least thirty times today on TV One).
Not so.
The quake Has caused destruction in the areas long labelled as most susceptible: near the Estuary, around the river, on sandy soils, and towards the west of the city. Plus, old masonry, well below earthquake code, has oh so predictably suffered.
But the effect is extremely localised: suburb to suburb, Your Mileage May Vary.
And if, as we are, you're set up for camping, you roll out the chemical loo, get the torches and gas lights, light the log fire, and carry on with life.
Having an earthquake-code-compliant house, in a suburb with very low ground liqefaction possibilities, was a wise move.....
Wednesday, June 30, 2010
Housing and the New Normal
And yes, LTV's of 110% were creeping in here - I do recall a Westpac marketing pamphlet for 'professionals' which offered just that.
But y'all are missing an important aspect of the whole puzzle.
You Cannot expect useful, current or relevant info from the MSM or indeed any organ which depends on ad revenues or continued access to the Corridors of Power, wherever they may be, in a time of transition.
Put simply, they are all too invested in the status quo to be trusted. Hence the predominance of what in t'old days were called 'puff pieces', RE types talking their book, and 'analysis' by reporters which Whaleoil correctly labels 'repeaters'. Nobody there is about to pull the house down on their own heads, so the happy-clappy talk continues.
What we Do have is a transition to the New Normal - consumption around 10-15% less permanently (about the extent to which it was debt-funded), the air going out of bubbles, and reversion to the age-old means of house prices 2.8-3.2 times household incomes, PE ratios in low-mid teens, and savings rates north of 10%.
All this was predicted by numerous authors around the 1990-1993 mark, sensed by artists - try reading the cover notes for Dylan's 'World Gone Wrong' (1993) and say it ain't so, and it is a tribute indeed to the capacity for human self-delusion that so many bubbles have been inflated to keep the Good Times Rollin' since then. Which is precisely the theme of Matt Taibbi's GS piece.
Events in funky li'l NZ are skewed by three factors which y'all can assess fer yerselves:
1 - NZ is a 'haven' destination, and this gives a Lot of insulation, as haven seekers arrive and bring their loot with them. This is an obvious factor in house prices, if little recognised.
2 - NZ can feed itself many times over, and has a wealth of mineral and fuel riches. There won't be the Peak Oil stuff here - the transition can be considerably smoothed thereby, and we won't starve either. Ye cannae say that aboot, e.g. Britain.
3 - There is a strong conversative/conservation streak in NZ (same root, differing implications) which, despite the usual underclass provocations, will see us through in relatively harmonious shape. Ye cannae say that aboot most of Europe.
The glass is, in fact, half full.....
Tuesday, June 15, 2010
Innovation in EV's - a Cambrian Explosion
Wheee! As the Mogambo Guru likes to say.
Oil, Gaia's abiotic fruit, yer days are numbered.
Especially as the alternatives to batteries themselves are under development, as this little piece of good news shows.
Just as the early iron ships, steel bridges, internal combustion engines, and other technonological innovations went through a necessary stage of a 'Cambrian Explosion' - types, technologies, shapes etc. A Darwinian process then followed, winnowing the variety into a much, much smaller number of types, which we take for granted.
This motorcycle is part of EV's Cambrian Explosion.
Sunday, June 13, 2010
Peak Oil?
Variations on 'I told you so' are a good substitute for thinking?
NZ is nowhere near PO: the CSG prospecting undertaken by L&M, the Southland lignite fields, and the highly prospective offshore oiliferous zones are all local mitigators. The undoubted impact in a wider sense is of the toxic combination of locally selective PO (e.g. Europe), and BHO's latest excursion into the international version of Chicago Machine Politics which won't end well.
What is needed is a cool, realistic view of how best to use our certain and extensive resources well: so as to make a transition which:
- preserves living standards for working people at or somewhere near current levels. (The rich always have multiple options, ignore them, and it might be as well to state out loud what Won't be possible, in terms of aforesaid living standards' contents). And condemning folk to live in the late 17th century won't cut it, either.
- does not involve more than a reasonable extension of current technological trends. F'rinstance, positing mass use of personal EV's is perfectly OK. Proposing maglev rail everywhere isn't. No unicorn milk and pixie dust, please.
- takes into account the dark view exemplified by fiction such as Danny Suarez' 'Daemon', informed though such as John Robb's Global Guerillas (much mischief for very little input because of systempunkts spread liberally through our infrastuctures), and the genetic fact that we're highly evolved monkeys with an immense capacity for self-delusion and mayhem.
I could go on, but you get the idea. Maybe.
Could be termed 'sustainability' but that phrase is soooo devalued.
Friday, June 11, 2010
New renewable energy source
..harnessing the rotational energy of Grave-Spinning-Founding-Fathers.
Mind you, this can only last the term of the current Prez.
Wednesday, June 09, 2010
Dylan - Neighborhood Bully
"The neighborhood bully been driven out of every land,
He’s wandered the earth an exiled man.
Seen his family scattered, his people hounded and torn,
He’s always on trial for just being born.
He’s the neighborhood bully.
Well, he knocked out a lynch mob, he was criticized,
Old women condemned him, said he should apologize.
Then he destroyed a bomb factory, nobody was glad.
The bombs were meant for him. He was supposed to feel bad.
He’s the neighborhood bully.
Well, the chances are against it and the odds are slim
That he’ll live by the rules that the world makes for him,
‘Cause there’s a noose at his neck and a gun at his back
And a license to kill him is given out to every maniac.
He’s the neighborhood bully.
He got no allies to really speak of.
What he gets he must pay for, he don’t get it out of love.
He buys obsolete weapons and he won’t be denied
But no one sends flesh and blood to fight by his side.
He’s the neighborhood bully.
Well, he’s surrounded by pacifists who all want peace,
They pray for it nightly that the bloodshed must cease.
Now, they wouldn’t hurt a fly. To hurt one they would weep.
They lay and they wait for this bully to fall asleep.
He’s the neighborhood bully."
Tuesday, June 08, 2010
Why I quote Kipling
Because Makers are free to go Make someplace else; to Make less (just sufficient for their own sustenance - income equals expenses); or to stop Making altogether. In all three cases, tax revenues collapse, suddenly.
And, you cannot Make (coerce) the Maker to Make stuff. At least not in a country I'd want to live in.
Whereas Takers have irreducible, and often extensive, Needs.
Wednesday, April 28, 2010
Printing houses
Faster, please.
Friday, March 19, 2010
This Mess We're In (with apologies to Polly Jean)
In handing out entitlements, perqs and goodies, in an implicit intent to buy their recipients’ votes, they have triggered the ‘endowment effect’.
Simply put, this means that you may not miss something you never had, but you’ll fight tooth and nail to preserve something you Do have, no matter how dodgy or corrupt the process of acquiring it was.
This ‘ratchet’ has now jacked most people’s hopes of continued income up, way, way past the point of sustainability. That is, we’re running out of Other People’s Money (the taxes paid by actual tax-producing enterprises and people).
I frankly don’t see any easy way out of this sort of boondoggle. The political way is blocked by the ‘entitled’, who will simply vote for the More Goodies Party if given the chance – what Mancur Olson calls ‘distributional coalitions’.
We see this oh so clearly by the Grey Mob’s fury over a few trips to Waiheke. ‘How Dare They!’ is the cry.
Bill E’s sober estimate of less-than-sufficient tax revenues is also no doubt an outcome of a ‘John Galt’ effect: you cannot force people who can control their net income, and therefore their tax liability, to Produce and be Taxed if they don’t agree with the uses to which said Tax is being put.
They will quietly arrange their production to suit their own need for income.
E.g. in most farming situations, the distinction between living expenses and small luxuries is quite invisible, and you can go fishing on the King Quad.
They will minimise the net income externally reported.
E.g. by a doctor not doing those few extra surgeries, or a consultant deciding that 24 billed hours/week @ $150 is enough, ta very much, and going golfing the other two days.
And of course in all these scenarios the tax liability (and national tax revenue) falls sharply.
Or, being smart, ambitious and mobile, they simply up stakes and leave.
I reckon that the Greek outcome is the most likely: as internal economic arrangements are so incestuous – a Gordian Knot, indeed – only the cold eye of external parties – bondholders spring to mind – has any power to force the needed changes.
Which changes are of course bleedingly obvious:
- arrange tax matters to minimise tax arbitrage
- remove welfare traps such as WFF and roll these into a finer-grained tax structure
- means-test universal benefits
- work for dole
- less Gumnut overhead
Then, and only then, does John Galt shuffle back to the pages of badly written if expository novels, because it would only then be clear to all Producers that their hard-earned Tax is not being misapplied to produce more underclass infestations, unintended outcomes, and perverse incentives.
The depressing if logical outcome of my estimate of the situation (and I see Mark H’s comment as a John Galt moment, too), is this:
There is no political way out of this. Because the distributional coalitions and the voices of the ‘entitled!’ are, taken together, a massive majority. And because (as I recall an ex Nat pollie telling us at an MBA briefing a decade and a half ago) MMP is a recipe for stasis – nothing much will change, because nothing much Can change.
So, chaps and chapesses (BH, you owe me a royalty for that term, BTW), don’t be going looking to Politicians of any stripe, to solve the pressing issues of our quirky little Isle.
And the follow-up, from comments which suggest marvellous ways to restructure tax:
JK and crew are castigated for an incremental/pragmatic approach, but political realities and the structures of MMP rule out anything else.
The change process, crudely put, is Unfreeze Existing/Change/Refreeze New.
Your proposals are for the middle bit.
Hitting a wall of some kind (bond-buyer revolt, sovereign debt default, Repo Man, bankruptcy) would seem now to be our best hope for getting the Unfreeze. After that, Change can happen.
But wishing this in public on all of us is, shall we say, Not a Good Look.
So we carry on, just kicking the can down the road. And, some of us, quietly preparing for a harsher, colder world.
Thursday, February 11, 2010
AGW as a belief system
The middle of the road stance is, surely, adaptation. And there are some unlikely allies in this: read Stewart Brand's latest 'Whole Earth Discipline', and it is clear that there is a splintering of the entire movement from within.
Brand advocates moving to cities (concentrate service delivery, allow opportunity, release women from rural idiocy, and generate real wealth), nuclear power (deal with concentrated waste instead of millions of smokestacks) and generally drives a Sherman tank through a whole bunch of environmental shibboleths.
Add to this the 'Resilient Community' effort from John Robb and crew, and we have a large part of the adaptation recipe right there before us.
The analogy here should be to the Reformation, which blew apart a corrupt and arrogant medaeival Catholic Church for ever. Climategate is about 1517 on that scale: the nailing up of Luther's theses. There's a bit of water to go under the bridge until we get to the 1520's, when Henry VIII figured out that he could get a twofer: his old marriage declared null, and (by declaring himself head of the Church in England), he could clip the ticket on the Church's takings. Which he finally got, 100%, by the dissolution of the monasteries, in 1536-8.
The AGW frenzy is fed by funding, just as was the Catholic Church. It's fun and cathartic to do the iconoclastic stuff - tear down the brazen images, paint over the elaborate frescoes, and generally try to eradicate the outward vestiges of the belief system.
But it's a better ploy, after that emotion subsides, to go after the AGW funding. Cut off the oxygen. The neat thing is, it makes better economic sense, too. Instead of wasting a lot of scarce dollars on researching 'the effects of climate change on the mating habits of the Greater Nebraskan Loon', it would be better use of that dosh to get one of Henry VIII's twofers: say, accelerate production of electric cars/build many small-scale nuclear plants And stop giving petrodollars to unfriendly regimes.
Oh wait. 'Accelerate'. My bad. Work on the braking software, too.
Wednesday, December 02, 2009
Accounting for Temperatures
To wit:
Each station in the record has an ‘account’ – a GUID if you will, and all temperature values and adjustments for a given station are recorded as transactions for that account, assigned to a date (and even time), and classified as some Type of transaction.
Types of transactions (trx) could usefully be globally codified: as it’s clear that a potent source of confusion is just what value adjustment happened to what data, when. The analogy here is to Generally Accepted Accounting Principles (GAAP) which rules the accounting world. Sorely needed in the world's temperature records....
Accounting systems which use the ’single-table’ approach and are in essence just a big bucket of transactions thereby, could in fact be adapted for this sort of recording. I've worked with SunSystems, Coda and Kypera - all are of this type. There are probably many others.
Trx types would obviously include:
- RAW measurement
- UHI adjustment
- EQP equipment change/calibration etc
- LOC location change adjustment
and so on.
Then, every Step in any process which causes value adjustments to be made to any data point (account/station, day) could be traced, and most importantly, added as a new trx, thus leaving the raw data strictly alone.
Auditors love this sort of approach, and the SQL database engines which store and handle the data, make short work of the heavy lifting in terms of summing trx, adding trx, and consolidating data. Of course the database itself is typically chock full of compliance features (thanks to SarbOx).
As a final aid to traceability, each trx can be stamped with the process name that put it there, and even a description. And who…..
And the beauty of this is that the existing data-generation routines can still operate, but instead of altering arrays of values, they would be adding trx per single data point.
As the start of a Global Temperature Dataset, a transactional accounting-style structure would begin to address the ‘amateur hour’ data storage and versioning techniques we see in so much of the CRU dataset, thanks to Harry.
Monday, November 30, 2009
Harry Read Me - ClimateGate
A lovely quote:
So, once again I don't understand statistics. Quel surprise, given that I haven't had any training in stats in my entire life, unless you count A-level maths.
An honest man in a den of vipers - I've just finished Wolf Hall, and the similarity between the climate crew and the post-Luther Catholic church is striking.
Climate crew:
- suspect data,
- data munges up the wazoo,
- academic echo chamber,
- currently facing funding cuts and fraud scrutiny,
- lashing out at critics (how Dare they - they aren't even Peer-Reviewed!).
Catholic Church:
- failing belief in the basic propositions by population,
- emergence of fanatical fringes of existing belief system,
- closed system of ecclesiastical courts (a state within a state)
- facing funding cuts as Henry VIII realises that if he can be Head of the Church and thus secure a ruling on his first 'marriage', he can also obtain the keys to the church's extensive coffers,
- burns critics at the stake after trials conducted by....priests!
I know analogies by example aren't scientific, but hey, it worked for carbon dioxide and AGW, d'innit?
Thursday, November 26, 2009
Climategate - a few links
Chiefio - who has discovered the 'snowbird' tendency of global thermometering - is my favourite link, because he took the time to actually build a test Linux box, work through the GisTemp code and station data, and think about the results. An engineer after me own heart. The results, for those lazy sods who don't click links is threefold:
1 - fewer thermometers in the world over time
2 - survivors tend to be at the coast or at low altitude
3 - history data, being from high altitudes as well, plus inland, is inherently different and colder, so the 'snowbird' thermometers (coastal or low altitude) with which this history is being compared show Warming! Quelle surprise....
Iowahawk has given us a short lesson on the climatologist ecology. Read it and laugh. Or have a replacement keyboard handy if you are consuming liquid refreshment.
Smoking gun or AGW Mushroom Cloud? I favour the latter, but the deaths will take years, and will be by radiation poisoning - the slow cutting off of grants funding....
Monday, June 08, 2009
VDH - the Reckoning
Thursday, June 04, 2009
Government Motors
Wednesday, December 17, 2008
Lights just went out in....
See 'em while you can (and, of course if there's anything to actually go for). Art and Architecture are my choices. That rules out a good deal of the globe, anyways.
As Kipling notes in the 'Copybook Headings' pome
'We moved as the Spirit listed. They never altered their pace,
Being neither cloud nor wind-borne like the Gods of the Market-Place.
But they always caught up with our progress, and presently word would come
That a tribe had been wiped off its icefield, or the lights had gone out in Rome'
Monday, December 01, 2008
Power, power everywhere
Whether it be current-generated power (and the original clue was thunk up, oh, 500 years ago by one L. da Vinci), thin-film solar (leading contender here), bacteria engineered to produce whatever takes your fancy (hydrocarbon chains, plastics precursors, or just plain ol' hydrogen), the answer is very clear.
Absent a major cataclysm, (and the current financial storm in a tea cup doesn't even rate on this score: it's simply returning Fings to their Natural Order: P/E ratios in the low teens, yields in the centuries old 6-8% range, house prices to 2.8-3.2 times household earnings), the histories are going to record that, just as the Stone Age didn't end because we ran out of rocks, and the Steam age didn't end because we ran out of water and coal, the Oil age didn't end because we ran out of Oil.
As anyone who's actually read Matt Simmonds knows, the Original Oil in Place can only be tapped to the tune of 10-30%. Geology and economics interesect on any given site to set that upper limit.
The forerunners of the new bio-solar age are just starting to ramp up commercially now. By the time the world really does see major disruptions in oil supply chains (think oil nationalism, piracy, pricing as well as field depletion), the alternatives will be there. Just in Time, natcherally.
Oh, and let's not forget conservation of energy. Just last week, I ordered a bunch of LED lights as replacements for those godawful pigtail (and mercury-laden) CFL's that the eco-agencies are pushing us all into. Well, a CFL to get a decent light output will draw 20-23 watts. The equivalent LED will draw 3-4 watts. From here.
Yup, folks, that power consumption is less than 20% of that of the State-Selected Winner. Another triumph of central planning.
And they are standard fittings too: E27 for the downlights, GU-10 for the fancy lights. Who needs State dinosaur selectors when little, nimble, furry competitors abound?
And, clever inventors....another step towards the Resilient Community.
Sunday, July 06, 2008
AGW as Mass Delusion
People are crazy and times are strange
I'm locked in tight, I'm out of range
I used to care, but things have changed
Wednesday, June 25, 2008
More books
Brave New War - John Robb. John's website (Global Guerillas) is compulsory reading for those who are trying to make sense of the increasing disorder that seems to surround us. I long ago read (in Rees-Mogg and Davidson's 'The Great Reckoning') that the mediaeval city-state would re-appear in our futures, as the best configuration within which to conduct business, defend oneself and generally get on with life. JR's latest book will be about Resilient Communities, which doesn't sound a long ways away from those city-states....
Reinventing Collapse - Dmitry Orlov. Another riff about the immediate future of the US of A. Still, as Britain has found, it's a long and quite comfortable drift downwards. I keep an eye on the Housing debacle there (Doctor Housing Bubble and others) and it's quite apparent that in terms of the five stages of Grief (Denial, Anger, Bargaining, Grief, Acceptance), they're veering between Denial and Anger right now. Still plenty of time on the hour-glass...
In Praise of Prejudice - Theodore Dalrymple/Anthony Daniels. I just like this guy's world-view and his spare, elegant but powerful way of writing. Oh, blimey, I'm gushing already and I've only looked at the cover. It joins another TD/AD book on the shelf, so it was a safe choice. Call me a convert.
Monday, April 28, 2008
Tribalism and Treaty
Is the political support currently behind the re-tribalisation of Maori, a Good Thang?
If you look at Ngai Tahu, who want to be capitalists, why yes. Probably.
If you look at Tuhoe Nation, who want to ride their horses back into a Glorious Misty-Mountain Past and get a little cash from training camps on the side, why no. Probably.
What do finer minds than mine say?
There's the Latin American notion of "let us have our Middle Ages in peace" (from The General and his Labyrinth - Marquez). This simply draws a comparison with the long, bloody and traumatic transformations in our English Middle Ages:
- the Reformation (c 1520),
- the dissolution of the monasteries (c 1538),
- the re-Catholicisation of Bloody Mary (c 1553),
- the Shakespearian age of Elizabeth I (c1599) (Shakespeare, a secret Catholic, hankered after the old days: 'bare ruined choirs where late the sweet birds sang', referred to the monasteries),
- the chaos of the Cavaliers vs Roundheads in the English Civil War (c 1642)
- the Glorious Revolution (1688) which finally settled the principle of Parliamentary control
This 200-year saga, in retrospect, was needed to make the decisive break from a 'world lit only by fire', innocent of the germ theory of disease, and in thrall to a corrupt but totalitarian Catholic Church, to the Age of Reason.
Why, in this reading, should Maori and their (and it was ours, too) default setting of small, non-urban tribes, need any shorter time? Because one of the lessons of history is that humans need to be severely jolted to move even one millimetre away from 'traditional ways', however they are defined.
The contrary view: that tribalism is a pernicious cul-de-sac, would have it that, as the Greeks figured out early on, an essential feature of society is the deliberate lack of political power able to be held by groupings such as clans, tribes, mafias, and other self-defining sub-sets. A good read here is Roger Sandall (Culture Cult): the quote which got my attention is
"The dynastic feuding of ‘tyrants’ had brought Athens to the point of ruin. It had to be stopped. Cleisthenes’ solution was to firmly suppress a citizen’s political identification with family and neighborhood, with mafia bosses and clan chiefs. He sliced the country into 150 electoral districts called ‘demes’, and it was from these—and no longer from clans and families—that the citizens of Athenian democracy were obliged in future to take their second names. This applied to the haughtiest aristocrat and the humblest plowman alike.
... a number of historical parallels between the ancient and modern worlds and the continuing clash of East and West. But nothing is more revealing than the determination of Cleisthenes to stamp out despots and despotism by severing the connection between clan power and political representation. This was in 507 BC. Today, 2,500 years later, throughout most of the Middle East and conspicuously so in Iraq, they still haven’t got the point."
And neither, in this view, have the neo-tribalists.
Which brings us back to the muddled present. It is quite clear that Maori lore and tradition (the bits that would widely be classed as Baby, not Bathwater, at any rate) is quite inadequate to assist in most of the physical features of our modern life. Maori were non -urbanised, and this fact alone means that there is nothing that Tradition can say about the daily lives of 95% of us.OTOH, the mental or spritual aspects of our modern life are, shall we say, somewhat arid. Part of the collateral damage of the Age of Reason was that the notion of Gods or other spiritual manifestations was comprehensively demolished.
Yet the human mind seems to have evolved to require something larger than itself to look up to. Gaia doesn't quite fit the bill, the Christian God is fairly much dead if not buried, Mohammed is a violent, woman-fearing hick - Deliverance in the Desert, so to speak - and Buddha has been killed by someone he met on the road.
So perhaps this spiritual void is a place to start from.
But not as tribes, as individuals.
Tuesday, April 08, 2008
Tibet - the ultimate theme park
“The monks do not practice a religion so much as a sort of folkloric animism that is out of place in the modern world. That is what makes them appear so charming to the spiritual tourists of the West. Attractions of this sort aren’t rational, and there is no point arguing about it. Give the tourists and the monks what they want, and promote the exchange of currency for a spiritual frisson.”
Having spent a glorious six days sloshing around Venice (motto: 'Nothing preserves like neglect!") , I can quite appreciate Spengler's POV. Monuments to faded glory do appeal to the Western fin-di-siecle zeitgeist, and fit the Japanese notion of shibui.And Venice (not so true off-season, so guess when we went...) certainly has the cash-for-contemplation gig sussed.
So, there's a Template fer the Temples of Tibet.
But, ain't it simply delicious, to have Keith Locke, of all people, trumpeting the Rights of Tibet to Self-Determination. Keef has been known to cheer for the Other side, too. Oh well, age does funny stuff to memory. And logic.