The idea that human beings have changed and are changing the basic climate system of the Earth through their industrial activities and burning of fossil fuels--the essence of the Greens' theory of global warming--has about as much basis in science as Marxism and Freudianism.
Global warming, like Marxism, is a political theory of actions, demanding compliance with its rules.Marxism, Freudianism, global warming. These are proof--of which history offers so many examples--that people can be suckers on a grand scale. To their fanatical followers they are a substitute for religion.
Global warming, in particular, is a creed, a faith, a dogma that has little to do with science. If people are in need of religion, why don't they just turn to the genuine article?
Paul Johnson
09 June, 2009
2002 Africa/UK/Thailand Travelog
Link to narrative and photos
http://users.bigpond.com/kcmg/travellog.htm
Link to narrative and photos
http://users.bigpond.com/kcmg/travellog.htm
Climate Change-Washington Times
Global Warming
Wednesday 07 May, 2008 - 10:20 by David Boyd in Global Warming
The Conservative Position on Global Warming:
The strongest conservative position on global warming is as follows:
Climate change is happening, always has happened and always will; humans contribute to it to some unknown degree; a hysterical U.N. Intergovernmental Panel on Climate Change has leapt far ahead of the science, and, in its politicized discredit, should be ignored; climate policy is to be determined by elected officials, not unaccountable technocrats; it is surely worth society's efforts to fund, study and develop realistic alternatives to fossil fuels in the event that the man-made impact turns out to be significant — this is advisable for security reasons also; the leading liberal proposals are simply too expensive; and, crucially, forcible mandates are harmful. Productive government attention to technical and scientific problems always more readily resembles the efforts of the National Institutes of Health, ARPANET (the Internet precursor) or the Manhattan Project than mere decrees. Technological research and innovation are the best means of harnessing ingenuity to solve mankind's technical, scientific and environmental problems.
Washington Times Editorial 17.04.2008
Speech to World Hereford Conference 2004
World Hereford Conference 2004
J D O Boyd
COMMERCIAL REALITIES IN
MODERN AUSTRALIAN AGRICULTURE
Thank you for this opportunity to speak to such a distinguished audience on a subject close to my heart.
I would like to give you a broad picture of the agricultural "environment" (climatic, political and economic) in which I am involved, and provide you with an overview of its commercial realities.
J D O Boyd
COMMERCIAL REALITIES IN
MODERN AUSTRALIAN AGRICULTURE
Thank you for this opportunity to speak to such a distinguished audience on a subject close to my heart.
I would like to give you a broad picture of the agricultural "environment" (climatic, political and economic) in which I am involved, and provide you with an overview of its commercial realities.
I run a large-scale family farming business for UK owners, with investment spread across cotton, sheep, wool, cattle and dryland arable farming (grain, pulses and oilseeds).
These properties extend from Longreach in the central north of Queensland, west to the Channel Country and Cunnamulla, and to Bourke and Coonamble in western NSW.
These properties extend from Longreach in the central north of Queensland, west to the Channel Country and Cunnamulla, and to Bourke and Coonamble in western NSW.
I propose to discuss
• The vagaries of the Australian climate
• Recent trends in Government involvement in the agricultural sector
• Our export dependence, and its inherent price volatility
• Some characteristics of the sectors with which our Company is involved
• The vagaries of the Australian climate
• Recent trends in Government involvement in the agricultural sector
• Our export dependence, and its inherent price volatility
• Some characteristics of the sectors with which our Company is involved
Climate Vagaries
One of our most popular poets of old wrote:
"I love a sunburnt country a land of sweeping plains,
Of rugged mountain ranges, of droughts and flooding rains,"
One of our most popular poets of old wrote:
"I love a sunburnt country a land of sweeping plains,
Of rugged mountain ranges, of droughts and flooding rains,"
Australia is almost as large as the USA (Alaska excluded); is 50 per cent larger than Europe, and 32 times larger than the UK. It’s 3680km north to south and 4000km east to west.
It’s the lowest, flatest, driest developed country on earth. Mean elevation is a touch over 200 metres. About 80 per cent of the continent has median rainfall of less than 600mm per year.
Two-thirds of the continent is arid or semi-arid, where it rains less than 50 days per year.
Seasonal air temperatures vary from 50 degrees centigrade (with surface temperatures embracing 80 degrees) down to below zero.
It’s the lowest, flatest, driest developed country on earth. Mean elevation is a touch over 200 metres. About 80 per cent of the continent has median rainfall of less than 600mm per year.
Two-thirds of the continent is arid or semi-arid, where it rains less than 50 days per year.
Seasonal air temperatures vary from 50 degrees centigrade (with surface temperatures embracing 80 degrees) down to below zero.
As an example of temperature extremes, from April to October in 1923, Marble Bar in the north west of Western Australia recorded 161 consecutive days (over five months) with temperature exceeding 100 degrees Fahrenheit.
Rainfall is irregular and unreliable. Evaporation is high. Less than 1 per cent of the agricultural land is irrigated. Only one-fifth of divertible water resources have been developed.
While just over 60 per cent of the land mass is used for agricultural pursuits, about 84 per cent of the population live on 1 per cent of the continent, along the south east and east coast.
While just over 60 per cent of the land mass is used for agricultural pursuits, about 84 per cent of the population live on 1 per cent of the continent, along the south east and east coast.
Soils are subject to erosion and waterlogging, and generally deficient in phosphorous, nitrogen and some trace elements. Large areas are subject to salinity and acidification.
But with these resources, we manage to house 20 million people, 26.4 million head of cattle, 95.6 million sheep, and around three million pigs, and crop around 20 million hectares of grain, plus cotton, winegrapes, sugar, etc.
Australia is the world’s largest exporter of wool, sheep and cattle, exporting around 6 million sheep and up to 1 million cattle annually.
We started our livestock industries in 1788 with just 6 cattle and 29 sheep imported from the Cape Colonies and later from India.
Live cattle exports began in 1844 and live sheep exports a year later in 1845.
Herefords were first imported in 1826 and first crossed with Zebus in the Northern Territory in 1931. In the late 1930s, some nine-tenths of the blood of NT cattle were Shorthorns, with some Hereford and Aberdeen Angus.
By the late 1990s, 50 per cent of northern cattle were of Brahman blood, and most of the remainder Brahman derived.
The resurgence of live cattle exports after the second world war, and the foundation of the modern live cattle export industry, comprised the export of Herefords to the Philippines in 1954-55.
We started our livestock industries in 1788 with just 6 cattle and 29 sheep imported from the Cape Colonies and later from India.
Live cattle exports began in 1844 and live sheep exports a year later in 1845.
Herefords were first imported in 1826 and first crossed with Zebus in the Northern Territory in 1931. In the late 1930s, some nine-tenths of the blood of NT cattle were Shorthorns, with some Hereford and Aberdeen Angus.
By the late 1990s, 50 per cent of northern cattle were of Brahman blood, and most of the remainder Brahman derived.
The resurgence of live cattle exports after the second world war, and the foundation of the modern live cattle export industry, comprised the export of Herefords to the Philippines in 1954-55.
There are around 70,000 grazing and broadacre properties, including 39,000 that grow wool and run sheep (including 8000 that specialise in prime lamb production), with about 40,000 properties running cattle.
One characteristic common to all sectors is the dominance of the family farmer. Among beef producers for example, only 1 per cent of all properties are owned by publicly listed companies.
Thus the top 20% of family farmer’s "set the pace" in Australian agriculture, battling price volatility, the long-term downward trend in commodity prices, and the continual challenge to improve productivity.
Thus the top 20% of family farmer’s "set the pace" in Australian agriculture, battling price volatility, the long-term downward trend in commodity prices, and the continual challenge to improve productivity.
In far-western Queensland we own a famous old property called "Thylungra". A colourful Irishman called Patsy Durack first settled this property and his granddaughter wrote a well-known Australian pastoral classic titled "Kings in Grass Castles".
The book takes its name from a quote attributed to Patsy Durack when he heard that he and his compatriot graziers were being referred to as "Cattle Kings". He apparently said in his Irish brogue.
"Cattle Kings ye call us, if we be kings then we are Kings in grass castles that may be blown away upon a puff of wind …"
So quite early our pastoralists recognised the transitory nature of kingship or in other words, were already aware of the inherent climatic variability.
The book takes its name from a quote attributed to Patsy Durack when he heard that he and his compatriot graziers were being referred to as "Cattle Kings". He apparently said in his Irish brogue.
"Cattle Kings ye call us, if we be kings then we are Kings in grass castles that may be blown away upon a puff of wind …"
So quite early our pastoralists recognised the transitory nature of kingship or in other words, were already aware of the inherent climatic variability.
There are two words that loom large in developing strategies to deal with variability: "flexibility" and "conservation".
Flexibility, to adjust to ever changing conditions (but not over-react), and conservation to "put away" in the good times against the certain knowledge that they will not last. Cash, feed (in various forms), and water each lend themselves to conservation.
Flexibility, to adjust to ever changing conditions (but not over-react), and conservation to "put away" in the good times against the certain knowledge that they will not last. Cash, feed (in various forms), and water each lend themselves to conservation.
Government Involvement
Australian agriculture has a history of extensive Government involvement.
Statutory marketing arrangements, closer settlement schemes, extensive regulation and subsidisation, coupled with tariff regimes for secondary industries that had a deleterious impact on rural exporters, were features of the past.
Australian agriculture has a history of extensive Government involvement.
Statutory marketing arrangements, closer settlement schemes, extensive regulation and subsidisation, coupled with tariff regimes for secondary industries that had a deleterious impact on rural exporters, were features of the past.
With a small domestic market, farm product prices were generally set by global supply and demand shifts, yet costs were set in a closeted Australian economy.
However, over the past 25 years we have seen great change. The Australian dollar has been floated, assistance to manufacturing industry wound back, statutory marketing arrangements largely disbanded, and much regulation reversed.
As a consequence we have a much more flexible, innovative, competitive, globally exposed agricultural sector.
However, over the past 25 years we have seen great change. The Australian dollar has been floated, assistance to manufacturing industry wound back, statutory marketing arrangements largely disbanded, and much regulation reversed.
As a consequence we have a much more flexible, innovative, competitive, globally exposed agricultural sector.
Albeit, a sector that in the last few years has suffered low prices from depressed global economies and has weathered the worst drought in our recorded history.
Assistance to Australian agriculture is now amongst the lowest in the world (See graphs)
Assistance to Australian agriculture is now amongst the lowest in the world (See graphs)
Cotton
The Australian cotton industry is a prime example of an industry that has survived and prospered from the withdrawal of Government intervention.
Once highly dependent on Government support, the cotton industry has now eschewed Government intervention, particularly in marketing, and has adopted a relentless and open-minded pursuit of technological excellence.
The Australian cotton industry is a prime example of an industry that has survived and prospered from the withdrawal of Government intervention.
Once highly dependent on Government support, the cotton industry has now eschewed Government intervention, particularly in marketing, and has adopted a relentless and open-minded pursuit of technological excellence.
Its research effort has been world class, as has been the sharing of information. So much so that yields have increased some 40% in the last 15 years and over one third of the crop is now genetically modified for insect and weed resistance, with a consequent dramatic drop in chemical usage.
Australia is the world’s fourth largest exporter.
Over 95% of production is exported in its raw state and is renowned for its quality.
Major markets are in Asia-Indonesia, Japan, Thailand, South Korea and Taiwan, with the occasional foray by China.
Australia is the world’s fourth largest exporter.
Over 95% of production is exported in its raw state and is renowned for its quality.
Major markets are in Asia-Indonesia, Japan, Thailand, South Korea and Taiwan, with the occasional foray by China.
In quantitative terms (not value) Australia actually produces more cotton than it does wool.
(I should mention that in the last two seasons we have had dramatically reduced quantities (50%) as a consequence of drought. But, this is surely a temporary aberration.)
(I should mention that in the last two seasons we have had dramatically reduced quantities (50%) as a consequence of drought. But, this is surely a temporary aberration.)
The number of farmers is quite small with about 1300 growers, and the industry is mostly geographically concentrated in eight river valleys in northern NSW and Queensland.
The marketing system is a delight from a producer’s perspective, with considerable volatility and the ability to fix prices forward when they are strong.
The marketing system is a delight from a producer’s perspective, with considerable volatility and the ability to fix prices forward when they are strong.
There are a number of competitive merchants (both local and international firms) always in the market and prepared to carry the quality risk, whilst they are able to offset their price risks by way of back-to-back contracts or on the very liquid New York futures market where most of the world’s supply and demand is concentrated.
Wool and Sheepmeat
Wool is to Australia as cotton is to the US. It is probably our oldest industry and deeply embedded in Australian culture.
"Australia rides on the sheep’s back" is an expression known to everyone of my generation. How things have changed.
Wool is to Australia as cotton is to the US. It is probably our oldest industry and deeply embedded in Australian culture.
"Australia rides on the sheep’s back" is an expression known to everyone of my generation. How things have changed.
The current Australian sheep flock of 95.6 million is at its lowest level since 1947-48. The flock has fallen by one-third over the past decade alone. We had more sheep in 1890 (97.8 million) than we do now.
More than 50 per cent of the sheep in Australia are grazed in just two States: NSW and Western Australia. Australia produces some 70% of the world’s apparel wool.
More than 50 per cent of the sheep in Australia are grazed in just two States: NSW and Western Australia. Australia produces some 70% of the world’s apparel wool.
Over the last 40 years, wool's share of the world textile market has dropped from 10% to just under 3% of a total market which has tripled over the same time, with most of the growth going to synthetics.
Australia's finer apparel wools continue to hold substantial shares of niche markets like men's suits, jackets, women's outer wear and, amidst wild fluctuations, command a price premium (three to six times cotton and synthetics).
They need to, as the product is much more expensive to grow and to process. Its niche market positioning now makes apparel wool a specialist market product and less a commodity.
They need to, as the product is much more expensive to grow and to process. Its niche market positioning now makes apparel wool a specialist market product and less a commodity.
The industry has had a history of extensive collective action and considerable Government intervention, particularly in marketing. This has resulted in a lack of innovation and a poor productivity improvement record. Real effort is now being made to change this.
Australia used to convert about 25% of the clip into tops. However, competition from China has reversed this trend, and now 40 to 50 per cent of greasy wool production is exported to China, with the balance going to a range of markets from the Far-east to Europe.
The wool production/processing chain is long and complex with many changes of ownership, and it is notoriously difficult to get a clear picture of the state of the industry.
Historically, there has been almost no sharing of price risk along the processing pipeline, with the majority of growers' wool sold at spot auction when it is ready for delivery. Processors are thus fully exposed to price risk.
The prices for different types of wool vary considerably, with the price differentials also subject to considerable change, depending on ever changing supply and demand levels for particular categories.
Historically, there has been almost no sharing of price risk along the processing pipeline, with the majority of growers' wool sold at spot auction when it is ready for delivery. Processors are thus fully exposed to price risk.
The prices for different types of wool vary considerably, with the price differentials also subject to considerable change, depending on ever changing supply and demand levels for particular categories.
Climate, rainfall, and vegetation variations, to a large extent, dictate the type of wool that can be grown in a particular area. Whilst scientists are now questioning this conventional wisdom, it is deeply embedded in the industry psyche.
The industry is fragmented, with over 40,000 growers and an average clip size of fewer than 50 bales.
Over the last twelve years the industry has laboured under the weight of a massive stockpile, which was slowly sold in competition with newly produced wool.
This stockpile was the result of some excessively aggressive intervention in the market by a statutory empowered grower body (hobbled by Government edict and agro-political infighting) which was insufficiently flexible to adjust to a dramatic demand change in the early 90’s when Russia withdrew from the market. In recent years China (including H.K.) has emerged as the dominant buyer of raw wool and the largest final consuming country.
This stockpile was the result of some excessively aggressive intervention in the market by a statutory empowered grower body (hobbled by Government edict and agro-political infighting) which was insufficiently flexible to adjust to a dramatic demand change in the early 90’s when Russia withdrew from the market. In recent years China (including H.K.) has emerged as the dominant buyer of raw wool and the largest final consuming country.
Over the years of low wool prices, sheepmeat sales, whether direct or indirect, have been the major driver of sheep prices.
For most Merino sheep, wool prices, along with seasonal conditions, have historically been the major influence on prices.
Around 66 per cent of all mutton produced is exported, as well as about 32 per cent of lamb production, hence our vulnerability to global market access, prices and currency changes.
For most Merino sheep, wool prices, along with seasonal conditions, have historically been the major influence on prices.
Around 66 per cent of all mutton produced is exported, as well as about 32 per cent of lamb production, hence our vulnerability to global market access, prices and currency changes.
Beef
With 26.4 million cattle, Australia has half the Argentinian herd, one-quarter of the herd in the US and China, and about one-sixth the herd in Brazil.
Between 1976 and 1984 the herd fell about 10 million to 19.4 million, but most of that decline has now been recovered, although it has taken 20 years to achieve.
With 26.4 million cattle, Australia has half the Argentinian herd, one-quarter of the herd in the US and China, and about one-sixth the herd in Brazil.
Between 1976 and 1984 the herd fell about 10 million to 19.4 million, but most of that decline has now been recovered, although it has taken 20 years to achieve.
But Australia is the world’s largest beef exporter, with two-thirds of its production exported to major markets such as the USA, Japan, Korea and Canada.
The industry has made good productivity gains, turning off younger animals at higher slaughter weights than in the past.
Whilst there is a growing feedlot industry (about 27 per cent of cattle slaughtered are from feedlots), the major proportion is grassfed, thus low cost.
The relatively low cost of land and transportation, together with recent improvements in abattoir productivity, means that the industry is now highly competitive in world terms.
It also has the great advantage of Australia’s high disease-free status and high food safety standards.
The relatively low cost of land and transportation, together with recent improvements in abattoir productivity, means that the industry is now highly competitive in world terms.
It also has the great advantage of Australia’s high disease-free status and high food safety standards.
Trade barriers to export growth remain extensive, particularly in Europe, but are progressively being reduced in Japan where per capita consumption remains tiny compared with western nations.
The industry is widely dispersed throughout Australia, with most of northern Australia being cattle dominant (now mostly Bos Indicus breeds), but at quite low stocking rates (one beast to 37 hectares in parts of the Northern Territory).
Two-thirds of all cattle reside in northern Australia. Queensland is the largest cattle producing State, holding 40 per cent of the national herd, almost double the number of cattle grazed in New South Wales.
Queensland runs about 11.5 million cattle and has been a major producer since the late 1800s, when the herd jumped from less than half a million head in 1860 to almost 7 million by 1895.
Two-thirds of all cattle reside in northern Australia. Queensland is the largest cattle producing State, holding 40 per cent of the national herd, almost double the number of cattle grazed in New South Wales.
Queensland runs about 11.5 million cattle and has been a major producer since the late 1800s, when the herd jumped from less than half a million head in 1860 to almost 7 million by 1895.
Prices in recent years, with the help of the weak $A, have been attractive to Australian producers. They are determined by a range of factors, including the production cycle in the US and the rate of turnoff relative to slaughter capacity in Australia. The latter is largely dictated by variations in seasonal conditions.
As mentioned earlier, Australia exports more live cattle than any other nation, with the major markets being Indonesia, Egypt (until this year), the Philippines and Malaysia.
Around 80 per cent of live cattle exported are from northern Queensland, the Northern Territory and the north west of Western Australia. We export from 17 ports to 22 countries.
Around 80 per cent of live cattle exported are from northern Queensland, the Northern Territory and the north west of Western Australia. We export from 17 ports to 22 countries.
Grain, Oilseeds and Pulses ("Dryland Winter Crop")
Dryland (non-irrigated) cropping in temperate Australia is dominated by the production of wheat. In the areas Clyde currently operates this includes high protein wheat (prime hard) which allows a degree of differentiation and which can attract significant premiums.
Dryland (non-irrigated) cropping in temperate Australia is dominated by the production of wheat. In the areas Clyde currently operates this includes high protein wheat (prime hard) which allows a degree of differentiation and which can attract significant premiums.
The Australian industry has been notable for its productivity achievements, particularly over the last 15 years when productivity growth has averaged 4% per annum, compound. Major contributing factors have been: -
• the advent of larger scale machinery, allowing country to be worked very quickly after rain, taking full advantage of surface moisture;
• the development of moisture seeking and conservation methods, including minimum till, which has allowed arable farming on a large scale to move into lower rainfall areas once regarded as suitable for grazing only;
• developments in the understanding of root and soil diseases and how they can be contained by the use of rotational crops, which can also contribute to soil nutrition;
• the advent of "precision agriculture" utilising global positioning systems (GPS) to precisely carry out farm operations with minimum wastage (overlap) and containing soil compaction.
• the advent of larger scale machinery, allowing country to be worked very quickly after rain, taking full advantage of surface moisture;
• the development of moisture seeking and conservation methods, including minimum till, which has allowed arable farming on a large scale to move into lower rainfall areas once regarded as suitable for grazing only;
• developments in the understanding of root and soil diseases and how they can be contained by the use of rotational crops, which can also contribute to soil nutrition;
• the advent of "precision agriculture" utilising global positioning systems (GPS) to precisely carry out farm operations with minimum wastage (overlap) and containing soil compaction.
Future developments will be the use of soil mapping and variable rate applications so that fertilizer and weed controlling chemicals can be applied to different parts of a paddock on an "as needed" basis.
Australia is usually the world’s second largest wheat exporter (after the US), with 16% of international trade in 2002. Its main markets are the Middle East, Indonesia, Japan and South Korea. China is an occasional substantial buyer.
The marketing system is dominated by AWB Ltd, the former Australian Wheat Board, which has a monopoly over wheat exports.
This monopoly is coming under increasing pressure with the domestic market freed up in recent years and the flexibility in the marketing of oilseeds and pulses demonstrating to growers that "big brother" is not necessary.
A significant disadvantage of the export monopoly was the insulation from competitive pressure that the monopoly gave to the transport and storage system participants. There is now increasing price pressure on these sectors, which will increase as the system is further deregulated.
This monopoly is coming under increasing pressure with the domestic market freed up in recent years and the flexibility in the marketing of oilseeds and pulses demonstrating to growers that "big brother" is not necessary.
A significant disadvantage of the export monopoly was the insulation from competitive pressure that the monopoly gave to the transport and storage system participants. There is now increasing price pressure on these sectors, which will increase as the system is further deregulated.
General: Exports and Volatility
You will have noted the export dependence-
Cotton over 95%
Wool (including early processed) over 95%
Wheat over 80% (??)
Beef around 65%
With wool, cotton, beef and wheat Australia is a major world exporter, the largest for wool and beef the second largest for wheat, and the fourth largest for cotton.
You will have noted the export dependence-
Cotton over 95%
Wool (including early processed) over 95%
Wheat over 80% (??)
Beef around 65%
With wool, cotton, beef and wheat Australia is a major world exporter, the largest for wool and beef the second largest for wheat, and the fourth largest for cotton.
With cotton, beef and wheat only a small proportion of world production is actually traded internationally.
The biggest producers are generally also the biggest consumers, so only small changes in the supply/demand balance in the major producing countries can have a huge impact on volumes traded internationally and thus on the world price. This is a recipe for price volatility.
The unreliable rainfall means that there can be periods where lack of rain for grazing pasture, dryland arable farming, and water for irrigation can create quite impossible conditions for profitable operation.
Throw this in with volatile commodity prices and a long- term adverse cost/price ratio and the challenges facing Australian farmers are significant!
Throw this in with volatile commodity prices and a long- term adverse cost/price ratio and the challenges facing Australian farmers are significant!
Corporate Farmers
Except in circumstances where they can acquire large amounts of capital that are not available to even the bigger family farmers, or where they can command technology that is otherwise difficult to acquire, there is little room for corporate farming operations.
Except in circumstances where they can acquire large amounts of capital that are not available to even the bigger family farmers, or where they can command technology that is otherwise difficult to acquire, there is little room for corporate farming operations.
With the industry dominated by family farmers who are generally more focused on asset growth than annual returns on shareholder funds, conventionally funded corporations find it very difficult to compete.
Family farmers simply bid the price of land to a level where the returns necessary to competitively service equity capital investment are simply not achievable for corporations.
Family farmers simply bid the price of land to a level where the returns necessary to competitively service equity capital investment are simply not achievable for corporations.
This problem, combined with the inconsistency of returns flowing from the variability of seasons and prices, has resulted in a consistent exodus of corporations from Australian agriculture over the last 25 years.
Marketing
We believe that the Australian cotton marketing system described earlier should be a model for Australian agriculture.
We believe that the Australian cotton marketing system described earlier should be a model for Australian agriculture.
By quite clearly separating the functions of pricing and physical delivery, living with volatility becomes much easier.
Often prices can be fixed when markets are strong providing there is a longer period in which the price can be established.
This is best done before "harvest", as afterwards cash imperatives often demand quick action.
Care needs to be taken that unbearable production risks are not incurred.
The existence of a liquid futures market is an enormous benefit.
Often prices can be fixed when markets are strong providing there is a longer period in which the price can be established.
This is best done before "harvest", as afterwards cash imperatives often demand quick action.
Care needs to be taken that unbearable production risks are not incurred.
The existence of a liquid futures market is an enormous benefit.
We are now selling our wool in the same way we sell our cotton, utilising a mixture of forward physical sales and derivatives.
Conclusion
I have attempted to provide, from a farmer’s perspective, a broad overview of the conditions under which Australian agriculture operates.
I have attempted to provide, from a farmer’s perspective, a broad overview of the conditions under which Australian agriculture operates.
I have attempted to describe some domestic economic changes of recent decades, which I believe place the general industry in a strong position to grow.
I have further attempted to give you a broad picture of the particular agricultural sectors-cotton, wool/sheep, beef and arable farming- with which my Company is involved.
Finally let me say that it is my view that there are substantial market opportunities ahead for agriculture, in the growing markets to our north, and particularly in China.
However competition will always be intense and individual enterprises will need to adopt a long term view, be clear on defining the business they are in, and be in a position to quickly adopt and apply relevant technological developments.
However competition will always be intense and individual enterprises will need to adopt a long term view, be clear on defining the business they are in, and be in a position to quickly adopt and apply relevant technological developments.
David Boyd - A story to be told.
POEM BY ANDREW HULL©2007,AndrewHull
David Boyd - A story to be told.
They say this country is a book of anecdotes and tales
From the red of Central Queensland and Western New South Wales
Through the black soil of the Darling where the flooded plains unfold
And your place within this country is a story to be told
It will take a bit of writing with some stops along the way
But it's sure to be exciting, and of course be ‘triple A'
It will start just west of Nyngan with a young man fresh at work
And will end at Wirribilla, or probably at Bourke
The writer will be hand picked, as all the stations are
And he'll never drop his standards, for you've set a lofty bar
He will need to know the country and must learn to love the land
And must try to speak the stories only you could understand
There will be a lot of chapters that this writer must combine
And the honest reader still will need to look between the lines
Some stories are for telling and some we must withhold
But your place within this country is a story to be told
Your friendships loom as large as your attention to detail
So Edward Scott and Dudley Dunn will feature in your tale
As will Beemery, Toorale, Clover Downs and Wingadee
And Pier Pier and Thylunga and Latoka and Rumleigh
There will have to be regrets if the story's to be true
So Portland Downs will rank among the losses that you rue
But your tale is not a sad one, and will not dwell on loss
It's measured by your influence on lives that you have crossed
As a mentor and a father and a husband and a friend
As a leader and as someone upon whom you can depend
As a steward of the country with a future to unfold
Your place within this country is a story to be told.
David Boyd - A story to be told.
They say this country is a book of anecdotes and tales
From the red of Central Queensland and Western New South Wales
Through the black soil of the Darling where the flooded plains unfold
And your place within this country is a story to be told
It will take a bit of writing with some stops along the way
But it's sure to be exciting, and of course be ‘triple A'
It will start just west of Nyngan with a young man fresh at work
And will end at Wirribilla, or probably at Bourke
The writer will be hand picked, as all the stations are
And he'll never drop his standards, for you've set a lofty bar
He will need to know the country and must learn to love the land
And must try to speak the stories only you could understand
There will be a lot of chapters that this writer must combine
And the honest reader still will need to look between the lines
Some stories are for telling and some we must withhold
But your place within this country is a story to be told
Your friendships loom as large as your attention to detail
So Edward Scott and Dudley Dunn will feature in your tale
As will Beemery, Toorale, Clover Downs and Wingadee
And Pier Pier and Thylunga and Latoka and Rumleigh
There will have to be regrets if the story's to be true
So Portland Downs will rank among the losses that you rue
But your tale is not a sad one, and will not dwell on loss
It's measured by your influence on lives that you have crossed
As a mentor and a father and a husband and a friend
As a leader and as someone upon whom you can depend
As a steward of the country with a future to unfold
Your place within this country is a story to be told.
11 March, 2008
Droughts and Flooding Rains
Monday 03 November, 2008
WRITING INSPIRED BY A FLIGHT OVER WESTERN NSW FLOODWATERS IN February2008[1]
“Droughts and Flooding Rains"- and not much in the middle.
A trip by road across Northern NSW last week and a flight in a light aircraft over the flooded Warrego, Paroo and Cuttaburra Creek, reinforced how Dorothea Mackellar got it so right. Australia is indeed a land of massive variability with quite extraordinary recuperative power.
Country that only a few months ago looked like the face of the moon after the worst drought in Australia's short recorded history and from which many said it would take years to recover, now looks magnificent. Waving natural perennial grasses, in some cases literally up to the top of fences, has replaced the bare dirt. The seedbed in this country must be huge. Depending on soil temperatures when water is added particular seeds germinate and dominate. Wetlands spring to life and areas like the Cuttaburra Basin have to be seen to be believed. Tens of thousands of acres covered in shallow water from the western Queensland rains. Bird life is fabulous although an encounter with a flock of pelicans heading west at 5,500 feet can give some anxious moments in a little aircraft. How do they know where the water bodies are? Better still, the lift in country people’s spirits after seven long years of drought1 is truly remarkable. It may not rain dollars, but it certainly rains hope, joy and confidence.
A week later we find the metropolitan press having a field day with negative propaganda from the likes of Professor Richard Kingsford, a well-known bird lover (nothing wrong with that), who has for years viewed irrigation as the root of all evil. Kingsford maintains a constant vendetta against man’s activities without ever recognising the social and economic benefits that can be derived from conserving a portion of our massively variable rainfall without inflicting unacceptable damage upon the environment.
Whilst it would be easy to become paranoid, it is truly alarming to see the lowest rainfall and run-off in our recorded history2, not being accepted as the primary cause of drastically reduced river flows. There must be something in man’s psychological makeup that makes it much more satisfying to blame human activity for what are predominantly natural events.
We seem to hear nothing but total blame for the low flow levels in our rivers being attributed to “irrigation extractions and mis-management”. We even have new members of parliament stating in their maiden speeches that one of their objectives is to “fix our rivers”. As though all we need to do is to reduce extractions. The dynamism of our rivers and the fact that water flows away and needs constant replenishment if flows are to be maintained, seems to escape most commentators, including some leading scientists.
Malcolm Turnbull has used the analogy of a bathtub to explain this widely held misunderstanding. People seem to view the rivers as a stationary tub that continues to hold water providing it is not bucketed out. The true analogy is, of course, a bathtub with the tap running and the plughole open. Some extractions will reduce the out flow (and this is what needs to be regulated), but whilst the tap remains “on” (read rain) the tub will continue to carry a stream. Our problem of the last several years has not been extractions from the moving bath flow, but the fact that God turned the tap off!
In fact, over the last several dry years, if in NSW there were no dams in the hills which feed our western and south-western flowing rivers, and thus no irrigation, the flows in our rivers would have been worse, sooner. The impact of the dams is to spread the flow time wise and keep it running for longer.
Future
Australia’s rainfall and run-off variability is notorious. The Darling River at Bourke, with its enormous northern and eastern catchment, has an annual average flow of 2.5m.megalitres. The spread around the average is huge. It ranges from zero (i.e. no flow whatever for 12 months), to 12m. megalitres (24 Sydney Harbours). If man is to live and prosper with this enormous variability, which the climate change scientists tell us is going to become even more variable, then two principles need to dominate our thinking. We need to conserve in times of plenty and build flexibility into our planning.
Conservation can take many forms, for farmers it can mean saving cash, saving feed (ground cover, grain and/or hay) and it can certainly mean conserving water.Take for example the recent very damaging NSW North Coast floods and think about the fact that we did not conserve a single megalitre. After such a dry period, surely an indictment upon this generation.
Some water stored high in the mountain catchment could have mitigated flood damage and provided water for future use on either side of the mountains. We are not talking about diverting rivers, rather we are suggesting water conservation that reduces flood damage and accepts our need to live with rainfall variability.
Flexibility can be achieved in many different ways. As has recently been recognised by the likes of Professor Peter Cullen, the growing of annual crops like rice and cotton, as distinct from permanent plantings, can mean that when water is unavailable no crop is planted. These crops are thus well suited to our variable river flows. (Cullen previously stated that “in a dry country like Australia we shouldn’t be growing thirsty crops like rice and cotton” and this statement has been “parroted” across the country, particularly in our cities.)
We clearly need more dams to put the conservation principle into practise. Given its long-term impact such expenditure can be amortised over very long periods. These dams need to incorporate large outlets to let small and medium flows pass when there are real downstream needs. Thus further applying the flexibility principle.
Given the massive variability of our rainfall and run-off patterns, it is extremely difficult to codify in black letter regulation, rules to deal with all eventualities. Rather our rivers need to be managed “adaptively” taking account of the massive variability, and balancing the often competitive social, economic and environmental needs.
It certainly makes little sense to deal in absolute whole numbers (e.g. the Murray Darling Basin Cap) when there is such huge variability. Rather the control mechanism should surely be based on variable percentages of flows rather than fixed numbers.
In fairness to our regulators, the “cap” was never intended as a long-term measure, but rather it was a short term initiative to gain some “breathing space”, whilst longer term measures were devised and introduced. However, as with many temporary taxes, they have a tendency to become fixtures!
Rural and regional Australia needs employment creating industries. Economically sustainable industries suitable for remote areas are difficult to identify. On our inland river floodplains, irrigation is a natural, if secure water can be added to complete the mix of excellent alluvial soils and ample sunshine.
This particularly applies if we are going to improve the living standards of indigenous Australians. It has been demonstrated that, self-respect, behaviour and health all improve where regular employment is available and taken up.
Thus there can be very considerable national savings as people are freed from their dependence on welfare and these savings should be factored in to the economic justification for water conservation investment.
David Boyd
04.03.2008.
For accompanying photos view http://picasaweb.google.com/davidboyd11/BackInBusiness?authkey=IPOIyT8cjXs
1] The immediate Bourke area of the Bourke Rural Lands Protection Board was drought declared in August 2001 and the declaration was not lifted until February 2008.
2 “The two year period to November 2007 recorded the lowest ever inflow to the Murray River. Inflows during this period were 43 per cent lower than the previous record low, which occurred at the end of 1938.” Prime Minister 04.03.08
WRITING INSPIRED BY A FLIGHT OVER WESTERN NSW FLOODWATERS IN February2008[1]
“Droughts and Flooding Rains"- and not much in the middle.
A trip by road across Northern NSW last week and a flight in a light aircraft over the flooded Warrego, Paroo and Cuttaburra Creek, reinforced how Dorothea Mackellar got it so right. Australia is indeed a land of massive variability with quite extraordinary recuperative power.
Country that only a few months ago looked like the face of the moon after the worst drought in Australia's short recorded history and from which many said it would take years to recover, now looks magnificent. Waving natural perennial grasses, in some cases literally up to the top of fences, has replaced the bare dirt. The seedbed in this country must be huge. Depending on soil temperatures when water is added particular seeds germinate and dominate. Wetlands spring to life and areas like the Cuttaburra Basin have to be seen to be believed. Tens of thousands of acres covered in shallow water from the western Queensland rains. Bird life is fabulous although an encounter with a flock of pelicans heading west at 5,500 feet can give some anxious moments in a little aircraft. How do they know where the water bodies are? Better still, the lift in country people’s spirits after seven long years of drought1 is truly remarkable. It may not rain dollars, but it certainly rains hope, joy and confidence.
A week later we find the metropolitan press having a field day with negative propaganda from the likes of Professor Richard Kingsford, a well-known bird lover (nothing wrong with that), who has for years viewed irrigation as the root of all evil. Kingsford maintains a constant vendetta against man’s activities without ever recognising the social and economic benefits that can be derived from conserving a portion of our massively variable rainfall without inflicting unacceptable damage upon the environment.
Whilst it would be easy to become paranoid, it is truly alarming to see the lowest rainfall and run-off in our recorded history2, not being accepted as the primary cause of drastically reduced river flows. There must be something in man’s psychological makeup that makes it much more satisfying to blame human activity for what are predominantly natural events.
We seem to hear nothing but total blame for the low flow levels in our rivers being attributed to “irrigation extractions and mis-management”. We even have new members of parliament stating in their maiden speeches that one of their objectives is to “fix our rivers”. As though all we need to do is to reduce extractions. The dynamism of our rivers and the fact that water flows away and needs constant replenishment if flows are to be maintained, seems to escape most commentators, including some leading scientists.
Malcolm Turnbull has used the analogy of a bathtub to explain this widely held misunderstanding. People seem to view the rivers as a stationary tub that continues to hold water providing it is not bucketed out. The true analogy is, of course, a bathtub with the tap running and the plughole open. Some extractions will reduce the out flow (and this is what needs to be regulated), but whilst the tap remains “on” (read rain) the tub will continue to carry a stream. Our problem of the last several years has not been extractions from the moving bath flow, but the fact that God turned the tap off!
In fact, over the last several dry years, if in NSW there were no dams in the hills which feed our western and south-western flowing rivers, and thus no irrigation, the flows in our rivers would have been worse, sooner. The impact of the dams is to spread the flow time wise and keep it running for longer.
Future
Australia’s rainfall and run-off variability is notorious. The Darling River at Bourke, with its enormous northern and eastern catchment, has an annual average flow of 2.5m.megalitres. The spread around the average is huge. It ranges from zero (i.e. no flow whatever for 12 months), to 12m. megalitres (24 Sydney Harbours). If man is to live and prosper with this enormous variability, which the climate change scientists tell us is going to become even more variable, then two principles need to dominate our thinking. We need to conserve in times of plenty and build flexibility into our planning.
Conservation can take many forms, for farmers it can mean saving cash, saving feed (ground cover, grain and/or hay) and it can certainly mean conserving water.Take for example the recent very damaging NSW North Coast floods and think about the fact that we did not conserve a single megalitre. After such a dry period, surely an indictment upon this generation.
Some water stored high in the mountain catchment could have mitigated flood damage and provided water for future use on either side of the mountains. We are not talking about diverting rivers, rather we are suggesting water conservation that reduces flood damage and accepts our need to live with rainfall variability.
Flexibility can be achieved in many different ways. As has recently been recognised by the likes of Professor Peter Cullen, the growing of annual crops like rice and cotton, as distinct from permanent plantings, can mean that when water is unavailable no crop is planted. These crops are thus well suited to our variable river flows. (Cullen previously stated that “in a dry country like Australia we shouldn’t be growing thirsty crops like rice and cotton” and this statement has been “parroted” across the country, particularly in our cities.)
We clearly need more dams to put the conservation principle into practise. Given its long-term impact such expenditure can be amortised over very long periods. These dams need to incorporate large outlets to let small and medium flows pass when there are real downstream needs. Thus further applying the flexibility principle.
Given the massive variability of our rainfall and run-off patterns, it is extremely difficult to codify in black letter regulation, rules to deal with all eventualities. Rather our rivers need to be managed “adaptively” taking account of the massive variability, and balancing the often competitive social, economic and environmental needs.
It certainly makes little sense to deal in absolute whole numbers (e.g. the Murray Darling Basin Cap) when there is such huge variability. Rather the control mechanism should surely be based on variable percentages of flows rather than fixed numbers.
In fairness to our regulators, the “cap” was never intended as a long-term measure, but rather it was a short term initiative to gain some “breathing space”, whilst longer term measures were devised and introduced. However, as with many temporary taxes, they have a tendency to become fixtures!
Rural and regional Australia needs employment creating industries. Economically sustainable industries suitable for remote areas are difficult to identify. On our inland river floodplains, irrigation is a natural, if secure water can be added to complete the mix of excellent alluvial soils and ample sunshine.
This particularly applies if we are going to improve the living standards of indigenous Australians. It has been demonstrated that, self-respect, behaviour and health all improve where regular employment is available and taken up.
Thus there can be very considerable national savings as people are freed from their dependence on welfare and these savings should be factored in to the economic justification for water conservation investment.
David Boyd
04.03.2008.
For accompanying photos view http://picasaweb.google.com/davidboyd11/BackInBusiness?authkey=IPOIyT8cjXs
1] The immediate Bourke area of the Bourke Rural Lands Protection Board was drought declared in August 2001 and the declaration was not lifted until February 2008.
2 “The two year period to November 2007 recorded the lowest ever inflow to the Murray River. Inflows during this period were 43 per cent lower than the previous record low, which occurred at the end of 1938.” Prime Minister 04.03.08
15 June, 2005
Speech in Opening the Centenary State Conference of NSW Rural Lands Protection Boards -June 2005
GRIFFITH-JUNE 2005
MR CHAIRMAN, DISTINGUISED GUESTS, LADIES & GENTLEMEN
I AM PARTICULARLY HONOURED TO BE ASKED TO OPEN THIS CONFERENCE, FOR MORE REASONS THAN ONE.
FIRSTLY, OF COURSE, IT IS YOUR CENTENARY CONFERENCE.
SECONDLY, I HAVE ALWAYS REGARDED P P BOARDS, IF I MAY USE THAT TERM, AS QUINTESSENTIAL OF AND INTRINSIC TO RURAL NSW. I HAVE A GREAT FEELING FOR THESE BOARDS. I GUESS IT’S THE CULTURE THEY REPRESENT AND, OF COURSE, THE EXTRAORDINARILY IMPORTANT ROLE THEY PLAY.
I AM TEMPTED TO WONDER “WHY ME”? HERE I AM, AS SOMEBODY ONCE SAID, A BROKEN DOWN STOCK AND STATION AGENT TURNED HUMBLE FARMER, BUT BEYOND FAMILY AND SPORT, MY LIFE HAS BEEN DOMINATED BY VERY STRONG INTERESTS IN AGRICULTURE AND PARTICULARLY IN THE ECONOMICS OF AGRICULTURE - IF YOU LIKE, THE BUSINESS WORLD AS IT RELATES TO THE BUSH.
I HAVE ALWAYS BEEN FASCINATED BY THE CONNECTION BETWEEN THEORY AND PRACTICE AND AM ALWAYS KEEN TO TEST NEW THEORIES IN THE PRACTICAL WORLD AND, LIKEWISE, TO TRY TO ANALYSE PRACTICAL SUCCESSES - INDUSTRIES, METHODS, WHATEVER - THAT APPEAR TO ME TO BE SUCCESSFUL AND TO TRY TO DETERMINE WHY THAT IS THE CASE.
I GUESS AT THE OUTSET I SHOULD TELL YOU TWO THINGS ABOUT MYSELF.
FIRSTLY, I CANNOT HELP VIEWING ISSUES THROUGH WHAT YOU MIGHT CALL AN “ECONOMIC PRISM”. I SEE THINGS IN TERMS OF THEIR ECONOMICS - IF YOU LIKE, THEIR ABILITY TO MAKE PROFITS, BOTH SHORT AND LONG TERM, AND I’M A GREAT BELIEVER THAT ONE MUST NEVER LOSE SIGHT OF THE LONGER TERM.
RECENTLY I HAVE BEEN ASKED BY THE DEPUTY P.M. TO CHAIR WHAT WE JOKINGLY CALL THE “NEW STATE”. THE NEW STATE IS THE AREA WHICH REJOICES UNDER THE EXTRAORDINARY NAME OF “THE DARLING MATILDA WAY SUSTAINABLE REGION”. THIS IS PART OF THE DOTARS (DEPT OF TRANSPORT AND REGIONAL SERVICES) METHODS OF ENDEAVOURING TO STIMULATE ECONOMIC ACTIVITY IN WHAT ARE ASSESSED TO BE DEPRESSED AREAS. THIS PARTICULAR REGION, WHICH WAS PROMISED IN THE LAST ELECTION AND HAS ONLY JUST COME INTO BEING, IS ACTUALLY THE SAME SIZE AS SOUTH AUSTRALIA, BORDERED ON THE WEST BY THE N.T. & S.A. BORDER, EXTENDS FROM NORTH OF BOULIA ALMOST TO MT ISA, AS FAR EAST AS JERICHO, TAKING IN ARAMAC, LONGREACH AND THEN SOUTH THROUGH BLACKALL, TAMBO, COMING DOWN THROUGH CHARLEVILLE, CUNNAMULLA, BOURKE, BREWARRINA, COBAR, HILLSTON AND THEN THE WESTERN SIDE OF THE LACHLAN RIVER RIGHT DOWN TO BALRANALD TO WENTWORTH. AS I SAY, AN AREA EQUAL IN SIZE TO SOUTH AUSTRALIAN AND WITH A POPULATION OF ONLY 80,000 PEOPLE, 20,000 OF WHOM ARE IN THE MAJOR CITY IN THE AREA OF BROKEN HILL.
THIS TASK HAS LED ME TO THINKING ABOUT WHAT IS IMPORTANT IN TERMS OF PEOPLE’S STANDARD OF LIVING, WELLBEING, ENJOYMENT OF LIFE AND WHAT ARE THE THINGS THAT CAN BE DONE TO IMPROVE THAT. AND AGAIN, MY ECONOMIC PRISM SUGGESTS TO ME THAT IT’S ALL ABOUT JOBS, JOBS, JOBS. AND NOT ONLY FOR ECONOMIC REASONS, BUT IT SEEMS TO ME THAT IF A PERSON CAN GET A JOB, OR PERHAPS IN THE FIRST PLACE, BE ENCOURAGED TO SEEK A JOB, AND THEN CAN GET A JOB, THEN IT LEADS TO ALL SORTS OF SOCIAL BENEFITS, PERSONAL BENEFITS, SELF RESPECT, SELF ESTEEM, PURPOSE AND ALSO THERE’S CONSIDERABLE EVIDENCE TO SUGGEST THAT BEHAVIOR, HEALTH ISSUES ALL IMPROVE WHEN PEOPLE GET A JOB. SO THE CHALLENGE OF THIS COMMITTEE (AND THE OTHER REGIONS) IS WHAT ECONOMIC ACTIVITY CAN YOU ENCOURAGE - AND THAT MAY NOT BE JUST WITH MONEY - IT MAY WELL BE WITH IDEAS - SO THAT JOBS CAN BE CREATED AND SO THAT AREAS CAN RAISE STANDARDS OF LIVING AND BECOME MORE PLEASANT PLACES TO LIVE AND PLACES WHERE PEOPLE WANT TO LIVE.
SO THAT’S THE FIRST THING I SHOULD TELL YOU ABOUT MYSELF - MY ECONOMIC PRISM HANG-UP.
MY SECOND IS, A PSYCHOLOGICAL PROBLEM! THAT IS THAT I JUST CANNOT HANDLE NEGATIVITY. I CANNOT STAND PEOPLE CONSTANTLY TELLING ME WHAT CAN’T BE DONE. THAT’S A PSYCHOLOGICAL PROBLEM THAT I HAVE TO LIVE WITH.
I WAS GIVEN NO SCRIPT FOR TODAY - I HAVEN’T BEEN TOLD ANYTHING IN TERMS OF WHAT IS EXPECTED OF ME IN THESE OPENING COMMENTS, EXCEPT THERE WAS A COMMENT ABOUT “DON’T BE TOO BORING” SO I’LL TRY NOT TO DO THAT.
SO OF COURSE IT’S A GREAT OPPORTUNITY TO INDULGE ONESELF AND TALK ABOUT SOME FAVOURITE THEMES - THE BEST ADVICE I’D EVER HEARD GIVEN TO SPEECH MAKERS WAS TO STAND UP, SPEAK UP AND SHUT UP! AND FOR SPEECH STRUCTURE YOU SHOULD SAY WHAT YOU ARE GOING TO SAY, SAY IT, AND THEN SAY WHAT YOU SAID.
SO - WHAT AM I GOING TO SAY?
I’D LIKE TO TAKE UP SOME FAVOURITE THEMES AND THEN COMPARE THEM WITH WHAT I WOULD LIKE CALL THE P.P. BOARD MODEL. PROBABLY NO FIRM CONCLUSIONS CAN BE REACHED, BUT AT LEAST IT MAY STIMULATE SOME THINKING AND I’D LIKE TO SHARE A FEW THOUGHTS WITH YOU.
SO THAT’S WHAT I’M GOING TO SAY. NOW I’LL SAY IT.
I’D LIKE TO TALK ABOUT CENTRALISATION VERSUS DECENTRALISATION - AND AS A NATURAL EXTENSION, EFFECTIVENESS VERSUS DUPLICATION. AS AN EXAMPLE, LET’S TALK A LITTLE BIT ABOUT SHIRE COUNCILS - ANOTHER LOCAL GOVERNMENT BODY. AS YOU KNOW, THERE HAS RECENTLY BEEN A PUSH TO MERGE SHIRE COUNCILS AND, OF COURSE IT’S HAPPENED QUITE EXTENSIVELY IN VICTORIA. I HAVE VERY SERIOUS DOUBTS ABOUT THAT. IT SEEMS TO ME THAT A LOCAL SHIRE, WITH EMPHASIS ON THE WORD “LOCAL” IS LOCALLY ACCOUNTABLE TO THE PEOPLE WHO ELECT IT, IS VERY CLOSELY IN TOUCH WITH THE ISSUES BECAUSE IT’S LOCAL, AND THUS, CAN BE VERY RESPONSIVE. I WOULD SUGGEST THAT A LOCAL BODY IS GENERALLY HIGHLY EFFECTIVE, AND NEEDS TO BE IN THE EYES OF STAKEHOLDERS WHO, OF COURSE, ARE CLOSE BY. YOU CAN ARGUE AND IT’S VERY EASY DEMONSTRATE, THAT IF YOU PUT TWO OR THREE SHIRES TOGETHER, THEN YOU ONLY HAVE ONE LEVEL OF MANAGEMENT - YOU AVOID DUPLICATION. YOU HAVE ONE SHIRE CLERK, YOU HAVE ONE SHIRE ENGINEER - AND THE DUPLICATION COSTS ARE VERY OBVIOUS, VERY MEASURABLE AND VERY EASY TO ARGUE. WHAT IS FAR HARDER TO ARGUE AND FAR HARDER TO DEMONSTRATE BUT, IN MY OPINION, VERY REAL, IS THAT THOSE PEOPLE ARE ESSENTIALLY LESS EFFECTIVE. THEY ARE FURTHER FROM THE ACTION. THEY ARE NOT AS IN TOUCH WITH THE LOCAL WISHES IN EACH OF THE AREAS AND TO SOME EXTENT, THEY DON’T HAVE THE SAME PRESSURES TO CONTAIN THE RATES WITHIN THEIR AREA BECAUSE THEY ARE SPREAD MORE WIDELY.
SO, MY BOTTOM LINE IS THAT ONE NEEDS TO LOOK VERY HARD AT THE EFFECTIVENESS COSTS THAT ARE VERY OFTEN INCURRED WHEN THE DUPLICATION SAVINGS ARE ARGUED, AND OFTEN ACHIEVED.
ANOTHER EXAMPLE I WOULD LIKE TO GIVE YOU IS THE DEMISE OF HOSPITAL BOARDS. I THINK THAT HAS BEEN A VERY, VERY BAD MISTAKE IN TERMS OF ADMINISTRATION, FOR THE SAME REASONS THAT IT’S REMOVED LOCAL OWNERSHIP, LOCAL IDENTIFICATION. DEMOCRACY WORKS, HOSPITAL BOARDS WERE ELECTED, AS YOU ARE, AND YOU HAVE TO BE ACCOUNTABLE, AND YOU HAVE TO BE ACCOUNTABLE FOR YOUR EFFECTIVENESS, AND FOR YOUR COSTS. WHAT I OBSERVE IN THE HEALTH AREA IS A LOSS OF OWNERSHIP, DETACHMENT, AND I THINK I OBSERVE MASSIVE BUREAUCRATIC COSTS THAT ARE GENERALLY HIDDEN FROM THE LOCAL PUBLIC.
TECHNOLOGY, OF COURSE, IMPACTS UPON THIS DEBATE ABOUT WHAT SHOULD BE CENTRALISED AND WHAT SHOULD BE DECENTRALISED. I MUST SAY, WITH ALL HUMILITY, THAT MY COMPANY HAS PRACTICED WHAT WE PREACH IN THIS AREA. AS SOME OF YOU WILL KNOW THE CLYDE BUSINESS STRETCHES FROM LONGREACH ON THE TROPIC OF CAPRICORN ALMOST TO DUBBO IN THE SOUTH, AND FROM WEST OF BOURKE TO WALCHA IN THE EAST - THE ‘D’ DIVISION OF THE ARMIDALE P.P. BOARD IF YOU LIKE - AND YET WE RUN THAT BUSINESS OUT OF BOURKE. OUR ACCOUNTANT IS IN BOURKE, OUR NEWLY APPOINTED GENERAL MANAGER - PASTORAL WHO IS RESPONSIBLE FOR THE STATIONS, IS NOW BASED IN BOURKE, OUR COTTON OPERATION, WHICH IS THE LARGEST PART OF OUR BUSINESS, OR WAS, DEPENDING ON WHETHER WE CAN KEEP ACCESS TO A REASONABLE AMOUNT WATER - IS BASED ALONG THE DARLING RIVER FROM BREWARRINA DOWN TOWARDS LOUTH. AND WE ARE RUNNING THAT BUSINESS OUT OF BOURKE - I HAVE SAID TO OUR PEOPLE THAT I BELIEVE THEY MUST HAVE, AND WE WILL ENSURE THEY ARE PROVIDED TO THE EXTENT THAT SERVICES ALLOW, WITH EVERY AID THAT THEY WOULD HAVE IF THEY WERE IN THE CITY. AND THAT, OF COURSE, IS VERY MUCH IN THE AREA OF TECHNOLOGY AND I THINK I CAN SAY (THOSE OPPOSED TO THE SALE OF TELSTRA MIGHT BE INTERESTED) THAT IN FACT THEY HAVE THAT - WITH TWO-WAY SATELLITE CONNECTIONS THROUGH THE INTERNET. I’M ENCOURAGED BY THE EXTENT THAT WE’VE BEEN ABLE TO ATTRACT SPECIALIST PEOPLE - I.T. SPECIALISTS, ACCOUNTANTS, AGRONOMISTS - AND I THINK IT WORKS. I GET GREAT COMFORT FROM THE FACT THAT I KNOW WHEN I RING UP THE ACCOUNTANT AND ASK HIM WHERE WE ARE UP TO WITH OUR COTTON DELIVERIES, HE CAN ACTUALLY LOOK OUT THE WINDOW AND AT LEAST SEE THE PRODUCT WE’RE TALKING ABOUT, RATHER THAN HAVING PEOPLE WORKING IN A REMOTE OFFICE, SAY IN SYDNEY.
BUT TECHNOLOGY DOES HAVE AN IMPACT. SOME OF THE TECHNOLOGY DOES NEED VOLUME, DOES REQUIRE SOME CENTRALISATION TO JUSTIFY THAT VOLUME. BUT ONCE AGAIN, ONE HAS TO BE CAREFUL THAT YOU DON’T CREATE A SPECIALIST JOB WHEN PREVIOUSLY IT WAS SPREAD LIGHTLY ACROSS MANY PEOPLE BECAUSE THE SPECIALIST APPOINTMENT ONLY LEADS TO INCREASED OVERHEADS.
AUSTRALIA HAS MADE GREAT PROGRESS IN THE LAST TWO DECADES. MUCH OF IT, I MUST SAY, INITIATED BY THE LABOR PARTY BUT CARRIED ON IN THESE VERY SUCCESSFUL TEN YEARS OF HOWARD GOVERNMENT. BUT WE STILL HAVE SOME LARGE, WASTEFUL, BLOATED BUREAUCRACIES. MY FORMER BOSS, EDWARD SCOTT, WHO HAD THE GREATEST HATRED OF BUREAUCRACY OF ANYONE I’VE EVER KNOWN, AND WENT TO ENORMOUS LENGTHS IN THE SWIRE BUSINESS IN AUSTRALIA TO AVOID PEOPLE PLAYING THE BUSINESS GAME - PEOPLE, IF YOU LIKE, MORE FOCUSSED ON PROCESS THAN ON OUTCOMES - AND I OBSERVE THAT VERY CONSIDERABLY WITHIN GOVERNMENT. WE HAVE AN INSURANCE BROKER WHO HAS A VERY INTERESTING WAY OF GOING ABOUT THEIR BUSINESS. OF COURSE, TO GET INTO A COMPANY, TO WIN THEIR INSURANCE BROKERAGE BUSINESS, THEY HAVE TO CONVINCE THE PEOPLE AT THE TOP THAT THEY’RE THE ONES TO DO IT. ONCE THEY’RE GIVEN A JOB - ONCE THEY’VE GO THE BUSINESS - THEIR MODUS OPERANDI IS THEN TO TAKE NOT TOO MUCH NOTICE OF WHAT THE PEOPLE AT THE TOP OF THE COMPANY HAVE TOLD THEM ABOUT WHAT ACTUALLY HAPPENS, AND GET INTO THE BOWELS OF THE COMPANY, GET ONTO THE SHOP FLOOR, AND FIND OUT WHAT REALLY HAPPENS. THEY FREQUENTLY TELLS ME HOW OFTEN THEY FIND THAT WHAT IS ACTUALLY HAPPENING ON THE SHOP FLOOR, IF YOU LIKE, THE FRONT LINE OF ACTIVITY, IS VERY, VERY DIFFERENT TO WHAT THE TOP MANAGEMENT THINK IS HAPPENING. SO ONCE, AGAIN THE NEED FOR DECENTRALISATION, THE NEED TO AVOID BUREAUCRACY, THE NEED TO GET INTO THE HEART OF THINGS TO KNOW WHAT REALLY HAPPENS.
IT’S BECOME VERY UNFASHIONABLE IN RECENT YEARS, TO HAVE A DIVERSIFIED BUSINESS. MORE AND MORE BUSINESSES TODAY ARE SPECIALISTS, AND THERE IS NO DOUBT THAT THE TECHNOLOGICAL DEVELOPMENTS LEAD TO THE NEED FOR INCREASED SPECIALISATION. THERE IS SO MUCH TO UNDERSTAND. AND I MUST SAY I USE THE WORD “FOCUS” (CONCENTRATION IF YOU LIKE) A GREAT DEAL IN MY EVERYDAY ACTIVITIES. WITHIN CLYDE, THE PEOPLE IN OUR COTTON BUSINESS DO NOTHING ELSE BUT COTTON. AND LET ME TELL YOU IN THIS GREAT AUSTRALIAN INDUSTRY, AN INDUSTRY I’VE GROWN TO LOVE IN MY RECENT CONNECTION WITH IT, BECAUSE OF THE GREAT SCIENCE, THE GREAT SHARING OF KNOWLEDGE, THE FREEDOM FROM GOVERNMENT CONTROL OR GOVERNMENT INVOLVEMENT EVEN - EXCEPT ON THE VERY BROADER ISSUES - I HAVE THE GREATEST RESPECT AND GREAT LOVE FOR THIS INDUSTRY WHICH IS QUITE A NEW THING IN MY SECOND CAREER. BUT IF OUR PEOPLE ARE SUCCESSFUL WITH COTTON, THEY’LL BE DOING WELL, AND THERE WILL BE QUITE ENOUGH TO CHALLENGE THEM, FOR THEM TO HANDLE, WITHOUT THEM HAVING TO WORRY ABOUT LIVESTOCK OR GRAIN PRODUCTION OR SOME OTHER PART OF THE BUSINESS.
I THINK IN ALL OF THESE ISSUES, SURPRISE AS IT MAY COME TO YOU TO HEAR ME SAY IT, YOU CANNOT BE DOGMATIC. THERE IS NO SINGLE RIGHT WAY. I THINK THE MOST IMPORTANT WORD IN THE ENGLISH LANGUAGE IS BALANCE, AND IT’S A MATTER OF GETTING THE BALANCE RIGHT. ALTHOUGH ONE ALSO NEEDS TO REMEMBER THAT WHAT MIGHT BE RIGHT TODAY MAY NOT BE RIGHT TOMORROW, OR NEXT YEAR, OR IN 10 YEARS TIME. I LIKE THE WORD ”DYNAMIC”. THINGS ARE CONSTANTLY CHANGING AND THEREFORE WHEN WE THINK WE’VE GOT IT ALL WORKED OUT AND WE’VE GOT IT ALL SET UP THE WAY IT OUGHT TO BE - LOOK OUT! - BECAUSE THINGS DO CHANGE.
NOW WHAT HAS ALL THIS GOT TO DO WITH RLPB’s? WELL I THINK IT’S GOT QUITE A LOT TO DO WITH THEM - BECAUSE I THINK YOU HAVE A MODEL THAT WORKS AND I HAVE THE GREATEST RESPECT FOR IT. YOU ARE COOPERATING, AS I HAVE OBSERVED, TO DO CENTRALLY THOSE FEW THINGS THAT NEED TO BE DONE CENTRALLY - TECHNOLOGY, I.T. SYSTEMS, BUSINESS PRACTICES - BUT YOU ARE A DECENTRALISED ORGANISATION, LOCALLY ACCOUNTABLE, DEMOCRATICALLY ELECTED AND FOCUSSED ON A RELATIVELY NARROW RANGE OF RESPONSIBILITIES. I JUST ASK YOU TO FIGHT TO PRESERVE IT. WATCH THE GROWTH OF CENTRALISED BUREAUCRACY. BUT I DON’T SEE ANY DANGER SIGNS. PERHAPS, AS GOVERNMENTS WIND BACK (AS I BELIEVE THEY SHOULD), THERE ARE ADDITIONAL THINGS THAT YOU COULD TAKE ON. BUT JUST BE VERY CAREFUL OF THE RISK OF LOSING FOCUS.
LADIES AND GENTLEMEN THANK YOU FOR LETTING ME INDULGE MYSELF WITH THOSE FEW THOUGHTS. I HOPE I HAVE SUCCEEDED IN STIMULATING ONE OR TWO IN YOUR MINDS. THANK YOU FOR THE HONOUR OF ASKING ME TO OPEN THIS, YOUR CENTENARY CONFERENCE, AND I HAVE I GREAT PLEASURE IN DECLARING IT OFFICIALLY OPEN.
(JDOB - 15.6.05)
MR CHAIRMAN, DISTINGUISED GUESTS, LADIES & GENTLEMEN
I AM PARTICULARLY HONOURED TO BE ASKED TO OPEN THIS CONFERENCE, FOR MORE REASONS THAN ONE.
FIRSTLY, OF COURSE, IT IS YOUR CENTENARY CONFERENCE.
SECONDLY, I HAVE ALWAYS REGARDED P P BOARDS, IF I MAY USE THAT TERM, AS QUINTESSENTIAL OF AND INTRINSIC TO RURAL NSW. I HAVE A GREAT FEELING FOR THESE BOARDS. I GUESS IT’S THE CULTURE THEY REPRESENT AND, OF COURSE, THE EXTRAORDINARILY IMPORTANT ROLE THEY PLAY.
I AM TEMPTED TO WONDER “WHY ME”? HERE I AM, AS SOMEBODY ONCE SAID, A BROKEN DOWN STOCK AND STATION AGENT TURNED HUMBLE FARMER, BUT BEYOND FAMILY AND SPORT, MY LIFE HAS BEEN DOMINATED BY VERY STRONG INTERESTS IN AGRICULTURE AND PARTICULARLY IN THE ECONOMICS OF AGRICULTURE - IF YOU LIKE, THE BUSINESS WORLD AS IT RELATES TO THE BUSH.
I HAVE ALWAYS BEEN FASCINATED BY THE CONNECTION BETWEEN THEORY AND PRACTICE AND AM ALWAYS KEEN TO TEST NEW THEORIES IN THE PRACTICAL WORLD AND, LIKEWISE, TO TRY TO ANALYSE PRACTICAL SUCCESSES - INDUSTRIES, METHODS, WHATEVER - THAT APPEAR TO ME TO BE SUCCESSFUL AND TO TRY TO DETERMINE WHY THAT IS THE CASE.
I GUESS AT THE OUTSET I SHOULD TELL YOU TWO THINGS ABOUT MYSELF.
FIRSTLY, I CANNOT HELP VIEWING ISSUES THROUGH WHAT YOU MIGHT CALL AN “ECONOMIC PRISM”. I SEE THINGS IN TERMS OF THEIR ECONOMICS - IF YOU LIKE, THEIR ABILITY TO MAKE PROFITS, BOTH SHORT AND LONG TERM, AND I’M A GREAT BELIEVER THAT ONE MUST NEVER LOSE SIGHT OF THE LONGER TERM.
RECENTLY I HAVE BEEN ASKED BY THE DEPUTY P.M. TO CHAIR WHAT WE JOKINGLY CALL THE “NEW STATE”. THE NEW STATE IS THE AREA WHICH REJOICES UNDER THE EXTRAORDINARY NAME OF “THE DARLING MATILDA WAY SUSTAINABLE REGION”. THIS IS PART OF THE DOTARS (DEPT OF TRANSPORT AND REGIONAL SERVICES) METHODS OF ENDEAVOURING TO STIMULATE ECONOMIC ACTIVITY IN WHAT ARE ASSESSED TO BE DEPRESSED AREAS. THIS PARTICULAR REGION, WHICH WAS PROMISED IN THE LAST ELECTION AND HAS ONLY JUST COME INTO BEING, IS ACTUALLY THE SAME SIZE AS SOUTH AUSTRALIA, BORDERED ON THE WEST BY THE N.T. & S.A. BORDER, EXTENDS FROM NORTH OF BOULIA ALMOST TO MT ISA, AS FAR EAST AS JERICHO, TAKING IN ARAMAC, LONGREACH AND THEN SOUTH THROUGH BLACKALL, TAMBO, COMING DOWN THROUGH CHARLEVILLE, CUNNAMULLA, BOURKE, BREWARRINA, COBAR, HILLSTON AND THEN THE WESTERN SIDE OF THE LACHLAN RIVER RIGHT DOWN TO BALRANALD TO WENTWORTH. AS I SAY, AN AREA EQUAL IN SIZE TO SOUTH AUSTRALIAN AND WITH A POPULATION OF ONLY 80,000 PEOPLE, 20,000 OF WHOM ARE IN THE MAJOR CITY IN THE AREA OF BROKEN HILL.
THIS TASK HAS LED ME TO THINKING ABOUT WHAT IS IMPORTANT IN TERMS OF PEOPLE’S STANDARD OF LIVING, WELLBEING, ENJOYMENT OF LIFE AND WHAT ARE THE THINGS THAT CAN BE DONE TO IMPROVE THAT. AND AGAIN, MY ECONOMIC PRISM SUGGESTS TO ME THAT IT’S ALL ABOUT JOBS, JOBS, JOBS. AND NOT ONLY FOR ECONOMIC REASONS, BUT IT SEEMS TO ME THAT IF A PERSON CAN GET A JOB, OR PERHAPS IN THE FIRST PLACE, BE ENCOURAGED TO SEEK A JOB, AND THEN CAN GET A JOB, THEN IT LEADS TO ALL SORTS OF SOCIAL BENEFITS, PERSONAL BENEFITS, SELF RESPECT, SELF ESTEEM, PURPOSE AND ALSO THERE’S CONSIDERABLE EVIDENCE TO SUGGEST THAT BEHAVIOR, HEALTH ISSUES ALL IMPROVE WHEN PEOPLE GET A JOB. SO THE CHALLENGE OF THIS COMMITTEE (AND THE OTHER REGIONS) IS WHAT ECONOMIC ACTIVITY CAN YOU ENCOURAGE - AND THAT MAY NOT BE JUST WITH MONEY - IT MAY WELL BE WITH IDEAS - SO THAT JOBS CAN BE CREATED AND SO THAT AREAS CAN RAISE STANDARDS OF LIVING AND BECOME MORE PLEASANT PLACES TO LIVE AND PLACES WHERE PEOPLE WANT TO LIVE.
SO THAT’S THE FIRST THING I SHOULD TELL YOU ABOUT MYSELF - MY ECONOMIC PRISM HANG-UP.
MY SECOND IS, A PSYCHOLOGICAL PROBLEM! THAT IS THAT I JUST CANNOT HANDLE NEGATIVITY. I CANNOT STAND PEOPLE CONSTANTLY TELLING ME WHAT CAN’T BE DONE. THAT’S A PSYCHOLOGICAL PROBLEM THAT I HAVE TO LIVE WITH.
I WAS GIVEN NO SCRIPT FOR TODAY - I HAVEN’T BEEN TOLD ANYTHING IN TERMS OF WHAT IS EXPECTED OF ME IN THESE OPENING COMMENTS, EXCEPT THERE WAS A COMMENT ABOUT “DON’T BE TOO BORING” SO I’LL TRY NOT TO DO THAT.
SO OF COURSE IT’S A GREAT OPPORTUNITY TO INDULGE ONESELF AND TALK ABOUT SOME FAVOURITE THEMES - THE BEST ADVICE I’D EVER HEARD GIVEN TO SPEECH MAKERS WAS TO STAND UP, SPEAK UP AND SHUT UP! AND FOR SPEECH STRUCTURE YOU SHOULD SAY WHAT YOU ARE GOING TO SAY, SAY IT, AND THEN SAY WHAT YOU SAID.
SO - WHAT AM I GOING TO SAY?
I’D LIKE TO TAKE UP SOME FAVOURITE THEMES AND THEN COMPARE THEM WITH WHAT I WOULD LIKE CALL THE P.P. BOARD MODEL. PROBABLY NO FIRM CONCLUSIONS CAN BE REACHED, BUT AT LEAST IT MAY STIMULATE SOME THINKING AND I’D LIKE TO SHARE A FEW THOUGHTS WITH YOU.
SO THAT’S WHAT I’M GOING TO SAY. NOW I’LL SAY IT.
I’D LIKE TO TALK ABOUT CENTRALISATION VERSUS DECENTRALISATION - AND AS A NATURAL EXTENSION, EFFECTIVENESS VERSUS DUPLICATION. AS AN EXAMPLE, LET’S TALK A LITTLE BIT ABOUT SHIRE COUNCILS - ANOTHER LOCAL GOVERNMENT BODY. AS YOU KNOW, THERE HAS RECENTLY BEEN A PUSH TO MERGE SHIRE COUNCILS AND, OF COURSE IT’S HAPPENED QUITE EXTENSIVELY IN VICTORIA. I HAVE VERY SERIOUS DOUBTS ABOUT THAT. IT SEEMS TO ME THAT A LOCAL SHIRE, WITH EMPHASIS ON THE WORD “LOCAL” IS LOCALLY ACCOUNTABLE TO THE PEOPLE WHO ELECT IT, IS VERY CLOSELY IN TOUCH WITH THE ISSUES BECAUSE IT’S LOCAL, AND THUS, CAN BE VERY RESPONSIVE. I WOULD SUGGEST THAT A LOCAL BODY IS GENERALLY HIGHLY EFFECTIVE, AND NEEDS TO BE IN THE EYES OF STAKEHOLDERS WHO, OF COURSE, ARE CLOSE BY. YOU CAN ARGUE AND IT’S VERY EASY DEMONSTRATE, THAT IF YOU PUT TWO OR THREE SHIRES TOGETHER, THEN YOU ONLY HAVE ONE LEVEL OF MANAGEMENT - YOU AVOID DUPLICATION. YOU HAVE ONE SHIRE CLERK, YOU HAVE ONE SHIRE ENGINEER - AND THE DUPLICATION COSTS ARE VERY OBVIOUS, VERY MEASURABLE AND VERY EASY TO ARGUE. WHAT IS FAR HARDER TO ARGUE AND FAR HARDER TO DEMONSTRATE BUT, IN MY OPINION, VERY REAL, IS THAT THOSE PEOPLE ARE ESSENTIALLY LESS EFFECTIVE. THEY ARE FURTHER FROM THE ACTION. THEY ARE NOT AS IN TOUCH WITH THE LOCAL WISHES IN EACH OF THE AREAS AND TO SOME EXTENT, THEY DON’T HAVE THE SAME PRESSURES TO CONTAIN THE RATES WITHIN THEIR AREA BECAUSE THEY ARE SPREAD MORE WIDELY.
SO, MY BOTTOM LINE IS THAT ONE NEEDS TO LOOK VERY HARD AT THE EFFECTIVENESS COSTS THAT ARE VERY OFTEN INCURRED WHEN THE DUPLICATION SAVINGS ARE ARGUED, AND OFTEN ACHIEVED.
ANOTHER EXAMPLE I WOULD LIKE TO GIVE YOU IS THE DEMISE OF HOSPITAL BOARDS. I THINK THAT HAS BEEN A VERY, VERY BAD MISTAKE IN TERMS OF ADMINISTRATION, FOR THE SAME REASONS THAT IT’S REMOVED LOCAL OWNERSHIP, LOCAL IDENTIFICATION. DEMOCRACY WORKS, HOSPITAL BOARDS WERE ELECTED, AS YOU ARE, AND YOU HAVE TO BE ACCOUNTABLE, AND YOU HAVE TO BE ACCOUNTABLE FOR YOUR EFFECTIVENESS, AND FOR YOUR COSTS. WHAT I OBSERVE IN THE HEALTH AREA IS A LOSS OF OWNERSHIP, DETACHMENT, AND I THINK I OBSERVE MASSIVE BUREAUCRATIC COSTS THAT ARE GENERALLY HIDDEN FROM THE LOCAL PUBLIC.
TECHNOLOGY, OF COURSE, IMPACTS UPON THIS DEBATE ABOUT WHAT SHOULD BE CENTRALISED AND WHAT SHOULD BE DECENTRALISED. I MUST SAY, WITH ALL HUMILITY, THAT MY COMPANY HAS PRACTICED WHAT WE PREACH IN THIS AREA. AS SOME OF YOU WILL KNOW THE CLYDE BUSINESS STRETCHES FROM LONGREACH ON THE TROPIC OF CAPRICORN ALMOST TO DUBBO IN THE SOUTH, AND FROM WEST OF BOURKE TO WALCHA IN THE EAST - THE ‘D’ DIVISION OF THE ARMIDALE P.P. BOARD IF YOU LIKE - AND YET WE RUN THAT BUSINESS OUT OF BOURKE. OUR ACCOUNTANT IS IN BOURKE, OUR NEWLY APPOINTED GENERAL MANAGER - PASTORAL WHO IS RESPONSIBLE FOR THE STATIONS, IS NOW BASED IN BOURKE, OUR COTTON OPERATION, WHICH IS THE LARGEST PART OF OUR BUSINESS, OR WAS, DEPENDING ON WHETHER WE CAN KEEP ACCESS TO A REASONABLE AMOUNT WATER - IS BASED ALONG THE DARLING RIVER FROM BREWARRINA DOWN TOWARDS LOUTH. AND WE ARE RUNNING THAT BUSINESS OUT OF BOURKE - I HAVE SAID TO OUR PEOPLE THAT I BELIEVE THEY MUST HAVE, AND WE WILL ENSURE THEY ARE PROVIDED TO THE EXTENT THAT SERVICES ALLOW, WITH EVERY AID THAT THEY WOULD HAVE IF THEY WERE IN THE CITY. AND THAT, OF COURSE, IS VERY MUCH IN THE AREA OF TECHNOLOGY AND I THINK I CAN SAY (THOSE OPPOSED TO THE SALE OF TELSTRA MIGHT BE INTERESTED) THAT IN FACT THEY HAVE THAT - WITH TWO-WAY SATELLITE CONNECTIONS THROUGH THE INTERNET. I’M ENCOURAGED BY THE EXTENT THAT WE’VE BEEN ABLE TO ATTRACT SPECIALIST PEOPLE - I.T. SPECIALISTS, ACCOUNTANTS, AGRONOMISTS - AND I THINK IT WORKS. I GET GREAT COMFORT FROM THE FACT THAT I KNOW WHEN I RING UP THE ACCOUNTANT AND ASK HIM WHERE WE ARE UP TO WITH OUR COTTON DELIVERIES, HE CAN ACTUALLY LOOK OUT THE WINDOW AND AT LEAST SEE THE PRODUCT WE’RE TALKING ABOUT, RATHER THAN HAVING PEOPLE WORKING IN A REMOTE OFFICE, SAY IN SYDNEY.
BUT TECHNOLOGY DOES HAVE AN IMPACT. SOME OF THE TECHNOLOGY DOES NEED VOLUME, DOES REQUIRE SOME CENTRALISATION TO JUSTIFY THAT VOLUME. BUT ONCE AGAIN, ONE HAS TO BE CAREFUL THAT YOU DON’T CREATE A SPECIALIST JOB WHEN PREVIOUSLY IT WAS SPREAD LIGHTLY ACROSS MANY PEOPLE BECAUSE THE SPECIALIST APPOINTMENT ONLY LEADS TO INCREASED OVERHEADS.
AUSTRALIA HAS MADE GREAT PROGRESS IN THE LAST TWO DECADES. MUCH OF IT, I MUST SAY, INITIATED BY THE LABOR PARTY BUT CARRIED ON IN THESE VERY SUCCESSFUL TEN YEARS OF HOWARD GOVERNMENT. BUT WE STILL HAVE SOME LARGE, WASTEFUL, BLOATED BUREAUCRACIES. MY FORMER BOSS, EDWARD SCOTT, WHO HAD THE GREATEST HATRED OF BUREAUCRACY OF ANYONE I’VE EVER KNOWN, AND WENT TO ENORMOUS LENGTHS IN THE SWIRE BUSINESS IN AUSTRALIA TO AVOID PEOPLE PLAYING THE BUSINESS GAME - PEOPLE, IF YOU LIKE, MORE FOCUSSED ON PROCESS THAN ON OUTCOMES - AND I OBSERVE THAT VERY CONSIDERABLY WITHIN GOVERNMENT. WE HAVE AN INSURANCE BROKER WHO HAS A VERY INTERESTING WAY OF GOING ABOUT THEIR BUSINESS. OF COURSE, TO GET INTO A COMPANY, TO WIN THEIR INSURANCE BROKERAGE BUSINESS, THEY HAVE TO CONVINCE THE PEOPLE AT THE TOP THAT THEY’RE THE ONES TO DO IT. ONCE THEY’RE GIVEN A JOB - ONCE THEY’VE GO THE BUSINESS - THEIR MODUS OPERANDI IS THEN TO TAKE NOT TOO MUCH NOTICE OF WHAT THE PEOPLE AT THE TOP OF THE COMPANY HAVE TOLD THEM ABOUT WHAT ACTUALLY HAPPENS, AND GET INTO THE BOWELS OF THE COMPANY, GET ONTO THE SHOP FLOOR, AND FIND OUT WHAT REALLY HAPPENS. THEY FREQUENTLY TELLS ME HOW OFTEN THEY FIND THAT WHAT IS ACTUALLY HAPPENING ON THE SHOP FLOOR, IF YOU LIKE, THE FRONT LINE OF ACTIVITY, IS VERY, VERY DIFFERENT TO WHAT THE TOP MANAGEMENT THINK IS HAPPENING. SO ONCE, AGAIN THE NEED FOR DECENTRALISATION, THE NEED TO AVOID BUREAUCRACY, THE NEED TO GET INTO THE HEART OF THINGS TO KNOW WHAT REALLY HAPPENS.
IT’S BECOME VERY UNFASHIONABLE IN RECENT YEARS, TO HAVE A DIVERSIFIED BUSINESS. MORE AND MORE BUSINESSES TODAY ARE SPECIALISTS, AND THERE IS NO DOUBT THAT THE TECHNOLOGICAL DEVELOPMENTS LEAD TO THE NEED FOR INCREASED SPECIALISATION. THERE IS SO MUCH TO UNDERSTAND. AND I MUST SAY I USE THE WORD “FOCUS” (CONCENTRATION IF YOU LIKE) A GREAT DEAL IN MY EVERYDAY ACTIVITIES. WITHIN CLYDE, THE PEOPLE IN OUR COTTON BUSINESS DO NOTHING ELSE BUT COTTON. AND LET ME TELL YOU IN THIS GREAT AUSTRALIAN INDUSTRY, AN INDUSTRY I’VE GROWN TO LOVE IN MY RECENT CONNECTION WITH IT, BECAUSE OF THE GREAT SCIENCE, THE GREAT SHARING OF KNOWLEDGE, THE FREEDOM FROM GOVERNMENT CONTROL OR GOVERNMENT INVOLVEMENT EVEN - EXCEPT ON THE VERY BROADER ISSUES - I HAVE THE GREATEST RESPECT AND GREAT LOVE FOR THIS INDUSTRY WHICH IS QUITE A NEW THING IN MY SECOND CAREER. BUT IF OUR PEOPLE ARE SUCCESSFUL WITH COTTON, THEY’LL BE DOING WELL, AND THERE WILL BE QUITE ENOUGH TO CHALLENGE THEM, FOR THEM TO HANDLE, WITHOUT THEM HAVING TO WORRY ABOUT LIVESTOCK OR GRAIN PRODUCTION OR SOME OTHER PART OF THE BUSINESS.
I THINK IN ALL OF THESE ISSUES, SURPRISE AS IT MAY COME TO YOU TO HEAR ME SAY IT, YOU CANNOT BE DOGMATIC. THERE IS NO SINGLE RIGHT WAY. I THINK THE MOST IMPORTANT WORD IN THE ENGLISH LANGUAGE IS BALANCE, AND IT’S A MATTER OF GETTING THE BALANCE RIGHT. ALTHOUGH ONE ALSO NEEDS TO REMEMBER THAT WHAT MIGHT BE RIGHT TODAY MAY NOT BE RIGHT TOMORROW, OR NEXT YEAR, OR IN 10 YEARS TIME. I LIKE THE WORD ”DYNAMIC”. THINGS ARE CONSTANTLY CHANGING AND THEREFORE WHEN WE THINK WE’VE GOT IT ALL WORKED OUT AND WE’VE GOT IT ALL SET UP THE WAY IT OUGHT TO BE - LOOK OUT! - BECAUSE THINGS DO CHANGE.
NOW WHAT HAS ALL THIS GOT TO DO WITH RLPB’s? WELL I THINK IT’S GOT QUITE A LOT TO DO WITH THEM - BECAUSE I THINK YOU HAVE A MODEL THAT WORKS AND I HAVE THE GREATEST RESPECT FOR IT. YOU ARE COOPERATING, AS I HAVE OBSERVED, TO DO CENTRALLY THOSE FEW THINGS THAT NEED TO BE DONE CENTRALLY - TECHNOLOGY, I.T. SYSTEMS, BUSINESS PRACTICES - BUT YOU ARE A DECENTRALISED ORGANISATION, LOCALLY ACCOUNTABLE, DEMOCRATICALLY ELECTED AND FOCUSSED ON A RELATIVELY NARROW RANGE OF RESPONSIBILITIES. I JUST ASK YOU TO FIGHT TO PRESERVE IT. WATCH THE GROWTH OF CENTRALISED BUREAUCRACY. BUT I DON’T SEE ANY DANGER SIGNS. PERHAPS, AS GOVERNMENTS WIND BACK (AS I BELIEVE THEY SHOULD), THERE ARE ADDITIONAL THINGS THAT YOU COULD TAKE ON. BUT JUST BE VERY CAREFUL OF THE RISK OF LOSING FOCUS.
LADIES AND GENTLEMEN THANK YOU FOR LETTING ME INDULGE MYSELF WITH THOSE FEW THOUGHTS. I HOPE I HAVE SUCCEEDED IN STIMULATING ONE OR TWO IN YOUR MINDS. THANK YOU FOR THE HONOUR OF ASKING ME TO OPEN THIS, YOUR CENTENARY CONFERENCE, AND I HAVE I GREAT PLEASURE IN DECLARING IT OFFICIALLY OPEN.
(JDOB - 15.6.05)
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