RECENTLY the Reserve Bank of Australia governor Philip Lowe, pictured, stated that "the blunt instrument of interest rate increases was the only tool he could access to reduce inflation" ('Governor 'sorry' for his call on rates', Newcastle Herald 29/11). The presumption that other tools or powers may be better suited could, and indeed should, make the powers that be consider changing some long-held assumptions and conventions in dealing with inflation.
My busy brain looked at the consumer price index and the so-called basket of goods. Assumptions many have had as to what the magic basket contains may either enlighten or shock the well informed.
Included: food and beverages (less alcohol and tobacco), housing, clothing, transport (not urban fares), medical, recreation and culture, education, other (non specified), furnishings, home equipment and services; communication; insurance and financial services. Housing is considered to be 33 per cent of wages. On minimum wage, half of these items cannot be part of life. It excludes volatile items: utilities, property rates, child care, motor vehicle services, education (see above, both excluded and included). Also home and contents insurance, mortgage and interest and credit charges.
Confusing as this appears, we then enter the realms of statistical interpretation.
The Australian Bureau of Statistics 2022 states the average earnings in the population to be $1769.88 weekly but the actual wage for all employees to be $1344.70, so what does this mean and how does this affect wage negotiations, salary caps etc?
Therefore people are on good wages and need not complain. The approx $71,000 you earn is definitely enough to pay your rent/mortgage and all else required, and as a single income family you are doing great.
Do the stats tell the whole story? There is another way to report this: the Fair Work Ombudsman in July stated that those on minimum wage earn $812 per week, allowing $270 per week for rent.
Currently there are 2.2 million Australians on the minimum wage.
Addressing these issues is of paramount urgency. My silly idea of raising the tax-free threshold for low income workers would have an immediate effect on not only those low income workers but the small businesses they mostly employ, but I am a voice in the wilderness.
Lyn Rendle, Rankin Park
Wage war on inflation, not pay
MUCH has been said by one would assume people who should know, the governor of the Reserve Bank for instance, about how if wages rise, the cost of living and inflation will sky rocket.
Can the governor of the Reserve Bank and the other commentators who follow his line of reasoning please give us the reason prices of essentials are already rising at an alarming rate? Energy, fuel for your car, insurance for your house, and other things you insure. Groceries, air travel, the list goes on, and we aren't talking the 7 or 8 per cent inflation rate on some of these items, we are talking 200 and 300 per cent.
It seems difficult for me to relate these increases to wages, especially the wage increases that haven't even happened yet.
Fred McInerney, Karuah
Why I'm still working at 70
I RECENTLY turned 70. I began my birthday with a lovely luncheon provided by my husband for 10 close friends. The celebration from my work colleagues was amazing. I was kidnapped at 9.30 and presented with a ukulele performance, wonderful tributes from teachers and the singing of Happy Birthday in our MPC. This continued at lunch where our Masterchef, Di presented the most delicious carrot cake, Claire read a lovely poem and had arranged for 2 previous leaders to send me a video followed by Bella presenting me with a book full of students' wishes. Did I mention the food, flowers and card? To say I was overwhelmed is an understatement. People ask me why I still work. I love the children. I love my work colleagues and I love the community. Every school I have ever attended has brought me joy. A joy I believe I inherited from my father, Merv Hall who was a wonderful teacher and a fantastic role model. Thank you again Dad.
Suellen Hall, Wallsend
Watchdog's likely to stay busy
THE much vaunted National Anti-Corruption Commission has finally been brought into law. It will be interesting to watch its progress. While both sides of politics have had their say, many in both will have much to fear over time. Not having read the Bill it seems unclear just who it will apply to. If it applies to local government the commissioners should have a field day. Though their time may be taken up investigating some of those who banged on about it. Mum always said be careful what you wish for. Now can we move on and reduce power prices as promised.
Sandy Buchanan, Largs
Due process is the reason
THANK you Greg Hunt for describing me as 'woke', (Short Takes, 25/11). It's a compliment I treasure, so much better than being 'unwoke'. As to why I didn't rabbit on about Hunter Biden in my letter, the letter I was replying to had not mentioned him so it was not relevant. If he did in fact do anything wrong, I do wonder why there have been no indictments when the FBI have had the laptop since 2020, when Trump was in power. If there are indictments to come based on actual evidence then Hunter deserves to cop legal action. That's the woke way.
Michael Gormly, Islington
Trump takes heat off opponents
MICHAEL Hinchey, (Short Takes, 29/11), if you read my letter again, ("Voters may not mind Trump's lies", Letters, 26/11), you will realise that the "other guy" is Joe Biden, and further banging on about Trump's morals shows a continued failure to understand how anyone could continue to support Donald Trump. I know it's deplorable, but people vote for policies, not just character, which is why many have no compunction about holding their noses to support Trump. I actually hope the Republicans find a different presidential candidate, because then the anyone-is-better-than-Trump argument can't be used as a cop out to deflect criticism of Biden and the Democrats.
Peter Dolan, Lambton
Deal shouldn't have been secret
PARLIAMENT now confirms that the lease arrangements for Port Botany, Port Kembla and the Port of Newcastle were hidden from Parliament until they were exposed by the Newcastle Herald in July 2016. Parliament debated the hidden lease arrangements when both Houses passed the "Port of Newcastle (Extinguishment of Liability) Bill 2022" on November 10.
A decision in 2012 by the then Treasurer to pay a lessee of Port Botany and Port Kembla for container traffic at the Port of Newcastle and to recover the cost from the operator of the Port of Newcastle, was hidden from Parliament when the "Ports Assets (Authorised Transactions) Act 2012" was made in November 2012 and amended in June 2013. It fundamentally undermines Australian democracy if a Parliament can make a law that authorises a minister to implement a hidden decision that is then denied until it is exposed by a newspaper.
Greg Cameron, Wamboin
SHORT TAKES
I'M struggling to understand the popular and media support for the current protests in China. Surely anyone who opposes being welded into their apartment only cares about the economy? No price is too great when it comes to saving lives. These right-wing Trump-supporting anti-vax conspiracy theorists deserve to get COVID and should be made to work in a COVID ward to appreciate how dangerous this pandemic really is. They believe that their so-called "freedoms" are more important than somebody else's right to stay alive. Wait - are we not doing that this time?
Scott Hillard, New Lambton
Margrietha Owens, your claim the Coalition and Independents are stopping Labor from implementing their election promises is false. Nobody is stopping Albos' promise that he will reduce electricity bills by $275. It is and will be proven to be a lie. As for reform, small business has many concerns. That's democracy.
Steve Barnett, Fingal Bay
THE more I think about the practicalities and details of putting an Indigenous Voice to Parliament in the Constitution it won't surprise me if in the long term Labor will be shown to have been unable to have seen the forest for the trees.
Clive Jensen, Merewether
IT is difficult to have a non-woke voice on the proposed referendum for changes to our constitution for a policy advisory chamber to be known as a Voice to Parliament. In my opinion the selective nature of a voice for one section of our population is fundamentally contradictory to all the principles, laws and institutions that are the foundations of our culture and the acceptance of people regardless of their race, religion and ethnicity. About 3.2 per cent of our population report as Indigenous and are represented by my count by 3.1 per cent of federal parliamentarians. I think that is a pretty fair representation.
John Cooper, Charlestown
DENNIS Crampton must be referring to our disgraced former pm Scott Morrison when he bemoans politicians lack of honesty. In my opinion never before have we been subjected to such a secretive mendacious and duplicitous leader and one who was deservedly censured for his contempt toward his colleagues and country.
Mac Maguire, Charlestown
LEAVE Jimmy Barnes alone, Don Fraser (Short Takes 30/11), he's a bloody legend. If they start putting all of us who are past our best out to pasture I reckon the majority of regulars on this page mist find themselves headed to the knackery.
Dave McTaggart, Edgeworth
DON Fraser, how can a member of Newcastle's worst band the Hi Fis rubbish Barnsey? Go the canonballs.
