Naughty Brisbane Metro

Don't joke about the Democratic People's Republic of Korea.

The owners and staff of Brisbane Metro (and Melbourne mX) will be first up against the wall if the world revolution comes embracing the Juche idea...

The use of language is astonishing and has to put most journalists to shame.   I've highlighted a few choice pieces.  I doubt very much if this event will go down in history for longer than about a week, but what is more astonishing is that someone picked up on this either online or in Australia to get the apparatchiks at the KCNA fired up over it.  North Korea's internet presence is progressively growing.

From the Korean Central News Agency - Pyongyang

Naughty Brisbane Metro Challenges Olympic Spirit: KCNA Commentary Pyongyang, August 7 (KCNA)

The Australian newspaper Brisbane Metro behaved so sordid as to describe the DPRK as "Naughty Korea" when carrying the news of London Olympics standings. 

This is a bullying act little short of insulting the Olympic spirit of solidarity, friendship and progress and politicizing sports. Media are obliged to lead the public in today's highly-civilized world where mental and cultural level of mankind is being displayed at the highest level. 

Brisbane Metro deserves criticism for what it has done. The paper behaved so foolish as to use the London Olympics that has caught the world interest for degrading itself. 

The paper hardly known in the world must have thought of making its existence known to the world by joining other media in reporting the Olympic news. Then it should have presented its right appearance to the world. 

Editors of the paper were so incompetent as to tarnish the reputation of the paper by themselves by producing the article like that. There is a saying "A straw may show which way the wind blows". A single article may exhibit the level of the paper. 

Many people were unanimous in denouncing the small paper for defaming the mental and moral aspects of the players of the DPRK who earned recognition from several appreciative world famous media. Even hostile forces toward the DPRK heaped praises on its players' successful performance at the London Olympics, saying that "Korea whirlwind" sweeps the world. The Australian paper cooked up the way of moneymaking, challenging the authority of the dignified sovereign state. The paper deserves a trifle sum of dirty money. 

As already known, it was reported that a lot of petty thieves sneaked into the London Olympics together with tourists. Players fight to the finish in the stadium, but those petty thieves demonstrate their "skills" outside the stadium. The paper Brisbane Metro is little different from those petty thieves. In a word, the paper discredited itself. How pitiful it is. 

The Brisbane Metro will remain as a symbol of rogue paper for its misdeed to be cursed long in Olympic history. The infamy is the self-product of the naughty paper Brisbane Metro which dared challenge the spirit of Olympic, common desire and unanimous will of mankind. 

Don't come to London - it will be too busy

They didn't, so it isn't.

The economic story of the Olympics is increasingly damning as it has become abundantly clear to many businesses in London that the net effect has been to scare off tourists from the city and to scare away the locals. The first thing that is noticed is that the public transport system and the roads are quieter than usual. The expected huge delays and overcrowding haven’t happened, in fact it is the other way round. On Monday I retimed my own commute to deal with the expected chaos, but on Tuesday found it quiet. It’s busy around Olympic venues yes, and there was awful weekend traffic in no small order because of the cycling road race both closing a whole series of roads and encouraging hundreds of thousands to head that way to watch.  Otherwise it’s grim for businesses (but a delight to walk around).

 Look at these figures: 

- 50% reduction in foreign visitors to London in July 2012 compared to July 2011 (European Tour Operators’ Association) 

- 4.5% reduction in retail footfall in the West End in July 2012 compared to July 2011

 - 2.6% reduction in retail footfall in the East End (where the games are) in the first few days of the Olympics compared to last year 

- 25% reduction in visitors to the British Museum in July 2012 compared to July 2011 

- Traffic counts in central London are down 17% on previous weeks 

- Major retailer NeXT estimates sales are down 10% in its central London shops.

-  The Licensed Taxi Drivers' Association estimates business is down 20-40%.

In short, it has been pretty much what I and others predicted. The Olympics deters as many as it attracts, as many presume prices will be inflated (and they were) and everything will be too busy. However, given that government agencies such as Transport for London have been constantly telling Londoners to make different plans and businesses were told to encourage people to work from home, take leave or avoid unnecessary travel, it shouldn’t be a surprise. People have done what they were told. 

However, politicians are in denial. Culture Secretary Jeremy Hunt said that such figures were nonsense saying that “restaurants, theatres and even cabbies who are out of pocket today will reap benefits for years to come.” according to the Evening Standard.  Yet how come the media can't find businesses outside the mall adjacent to the site that are doing well?  He's touting the obvious manufactured claim of his bureaucrats that "businesses who marketed well are doing well", yet how does he realistically think this can make up for the reduced visitor numbers?  Having taken taxes from all of these businesses to pay for these games and told many businesses to effectively cut travel to London or staff commuting in London, how dare he tell off the people who are paying for the games without the credit for it.

In a parallel story, traders at Greenwich market reported a 60% decline in trading, even though the market is located between the nearest Docklands Light Railway station and the Olympics venue, because of a huge barrier placed on the road to shepherd people from public transport to the venue. It has since been removed.

Of course a small business that takes risks based on a government funded project is always going to be taking a gamble, it doesn't help that Transport for London is still telling motorists to avoid Greenwich altogether and warning people of overcrowding stations in the area.

This follows rude prick and Sports Minister Hugh Robertson saying that businesses had “years” to plan, as if a restaurant in the West End can somehow woo hundreds of thousands of people that have been put off by constant taxpayer funded warnings to stay away. The Prime Minister continues to spout the empty delusion that the Games will generate £13 billion of benefits for the economy. 

Of course not one politician will come out and say the obvious. Hosting the Olympics never made economic sense. The Blair Government had advice at the time that said this. However Tony Blair, Gordon Brown, Ken Livingstone and their minions, and since then David Cameron, Nick Clegg, George Osborne and Boris Johnson, have all gone along with this delusion. The money for the games came from taxpayers. The majority of whom don’t live in London so will have seen no net benefit at all. If the businesses that were meant to benefit, by and large don’t, then you’ve been wrong. You’ve all gambled away £9 billion of other people’s money on a fun party. 

Yes the Olympic Games are a great time, and offer fantastic spectacles of people truly achieving their best through effort and training. Yes it’s nice for Team GB athletes to compete on home soil, but if you asked them if it was worth £9 billion of other people’s money for just that, I doubt they would agree. 

However, don’t bother pretending they are an “investment”. Don’t pretend that there are real economic benefits for anyone, beyond the construction companies for the facilities you paid for with other people’s money. London is already one of the world’s most popular tourist destination, it has no shortage of visitors. It was inevitable that a city as crowded and congested as London would need to chase some people away to allow others to come in.   The same thing happened in Sydney.   A study by James Giesecke and John Madden of Monash University indicated that the Sydney games generated a net loss of A$2.1 billion in economic activity.

Well done. 

Now first prize for the UK politician who stands up, after the OIympics I expect, and says “it wasn’t worth it”. 

and no, unlike the grumpy failed politician Gore Vidal, I don't get that much pleasure from "I told you so" when so much money has been wasted.

Second prize if someone simply pointed out that if London wants more visitors, allowing its busiest airport and only hub airport to build a third runway, a project the airport's Spanish owner is able to fully finance itself, would have been a far more effective and enduring way of attracting visitors that building a stadium that still doesn’t have a long term user. 

However, Olympics are a bigger spectacle and far more exciting than a permanent piece of infrastructure, especially when the latter is opposed by hoards of angry environmentalists (the ones who can't and wont protest the extra runway a month being built in China for new airports) and NIMBYs (who wish that 60 year old airport would go away so their property values would go up).

Which is why the government shouldn't be involved with either!

Meanwhile, DO come to London.  There are massive discounts at hotels, flights are cheap and it's easy to get around, and there are sales on if you avoid the crowded Stratford Westfield Mall (and why would you come to London to go to a mall full of eastenders on school holidays?).

Urban myths about Kiwirail

Once again the Alliance Party and rail unions' views on Kiwirail are being touted by the Labour Party as truths.

They are not.  Don't believe me? Thought not.  However, you might believe the Institute for the Study of Competition and Regulation based at Victoria University.

I've blogged this before, but it is worth repeating.  The full presentation debunking the myths is in Powerpoint here.

Here's a good summary I wrote before...

1. Rail network shrinked due to privatisation. Wrong. Almost all line closures were under state ownership when rail had a statutory monopoly on long haul freight!  The track network length has barely changed in 20 years.

2. Rail stopped being viable after free market reforms. Wrong, it stopped being consistently financially viable by 1945. It had short pockets of profitability since then. The early 1970s saw it drift from profitability to losses, which weren't recovered until 1983 after debts had been written off and it started being paid by government to run commuter rail services in Auckland and Wellington under contract (and a host of unprofitable freight lines, such as the Otago Central Railway).

3. Track Maintenance was run down after privatisation. Wrong, it was already being run down in public ownership, track was run down more, but sleeper replacement under private ownership increased.

4. Rail is worth a lot as an asset. Wrong. The NZ$12 billion book value of rail that was on the Treasury accounts was a nonsense, equating it to all other SOEs combined (e.g. 3 power companies, Transpower, NZ Post) which all make profits. Most of the value is based on a replacement cost if it was built today, which of course would never be done. I'd argue it is probably worth 4% of that at best.   It's worth noting that this has only been partly fixed as of late.

5. Rail only needed rescuing after privatisation. Wrong. It has been rescued several times before. It has long had serious economic viability issues.   In recent history it was bailed out in 1982 (all debts cancelled, and the operation commercialised), 1990 (had the debt of the North Island Main Trunk line electrification written off as a "Think Big" debt, then NZ$350 million, and another $1 billion wiped off to pay for the restructuring to make it viable).

6. Rail is good to reduce accidents, congestion and environmental problems Wrong. "the optimal level of externalities is not zero – at some point it becomes more expensive to lower them than the welfare created by their further abatement" Rail related deaths are only slightly lower than truck related. No evidence that rail reduces congestion. Sea freight is twice as fuel efficient than rail, but little interest in that mode.  Indeed Greens actively oppose international ships carrying domestic freight along the coast to placate their unionist mates.

Like I said before, the presentation basically says that rail is not as fuel efficient as is quoted, and that only 30% of the current network handles 70% of the freight. It suggests concentrating on the main trunk, and lines to the Bay of Plenty and the West Coast

Point scoring not principle

The paucity of principle in modern politics is unsurprising, so let's just establish the Labour Party's view on state ownership.

1.  The State can buy whatever it likes, even large unprofitable businesses, without an electoral mandate.   Taxpayers are expected to cough up for whatever politicians think they should buy with their money. 

 

2. Successful privatisations have been erased from history.  Opus, the former Ministry of Works, is now a successful multinational consultancy firm taking New Zealand expertise to the world.  Auckland Airport is a shining success as an airport.  Hardly a peep is heard of Contact Energy, bringing private competition to a state owned market.  State Insurance hasn't been state for 20 years.  NZ Steel continues to be a competitive exporter and productive job creator years after it was sold.  

3. It was ok for Labour to try to sell 20% of a state owned asset to its largest foreign competitor.  Dr Cullen was salivating at the chance to sell part of Air New Zealand to Qantas, which would have ended competition on domestic routes, sewn up around 80% of the Trans Tasman market to one operator.  However, that was "ok".  Only the Commerce Commission stopped this cosely set up deal, although few remember how much effort Qantas made to lobby the Labour Government at the time to delay giving the consent to Singapore Airlines buying 49% of the then privately owned Air NZ/Ansett group, which was a key step in kneecapping the group - in Qantas's interest - as it knew the NZ government wouldn't bail out Qantas's biggest domestic competitor (Ansett), and scuppering the Singapore deal bought Qantas years of dominance on the Australian market.

Either you're upfront and believe the state should own businesses and acquire new ones under certain principles, or that it shouldn't and should divest itself of them over time.

The Greens believe the former, Labour and National believes in none of the above and all of the above, depending on who you ask, and what time of day it is.

Why Boris Johnson beat Ken Livingstone

For all of the many reasons to be critical of the Olympics, it being a waste of future taxpayers' money, it being an unjustified corporatist suppression of free speech, the celebration of the world's most centrally planned universal health care system and most recently, the inability to flexibly manage access to tickets, and the lost opportunity to fix London's inadequate transport infrastructure, there are things to be grateful for - besides the great individual achievements by thousands of athletes (which is the true reason to celebrate the Olympics), Boris Johnson is Mayor rather than Ken Livingstone.

Why?

Boris has written "20 jolly good reasons to be cheerful about the Olympics"...

Including:

As I write these words there are semi-naked women playing beach volleyball in the middle of the Horse Guards Parade immortalised by Canaletto. They are glistening like wet otters and the water is plashing off the brims of the spectators’ sou’westers. The whole thing is magnificent and bonkers. 

and

The Olympics are proving to be a boost to tattoo parlours. Plenty of people seem to want their thighs inscribed with “Oylimpics 2012” and other ineradicable mis-spellings. 

Who would ever expect Ken Livingstone to say such things....

London 2012 < that phrase breaks the law (or what's wrong with the Olympics Part Two)

As I wrote previously, the Olympics can be a great cause for celebration of personal achievement my people striving to achieve the very best in their chosen sport or athletic event. As an advocate of capitalism, I’m not a supporter of the anti-capitalist protestors objecting to specific sponsors at the games. 

The patronising and precious attitude of protestors that having sponsors like Coca Cola and McDonalds means people will associate those brands with health living is insulting the intelligence of spectators and those at home watching the games. There wont be ads of Gold Medal winning athletes saying they did it drinking coke or eating McDonalds, but even if there were, then so be it. The do-gooding health bullies who want to restrict free speech because they think they can regulate, tax and berate everyone into eating and drinking as they want should just shut up. The simple response to sponsors whose products you don’t like is to not buy them or organise a boycott. Funnily enough had the Olympics actually come within budget as originally proposed by the government when it bid for the games, then it may be that sponsorship and ticket sales would have meant it broke even. The original budget being £2.4 billion excluding the external costs to related agencies, such as the Police. Now it is £9.3 billion plus those costs at around £2 billion, it’s easy to be cynical about the games from an economic perspective, but also desperate to maximise sponsorship to cover the costs.

You’d think that from my point of view, whatever it takes to get sponsorship is good. Well no. There is nothing wrong with granting the rights to be official sponsors, to use the logos and slogans trademarked for the Olympics. This, of course, is like any other event and any other corporate sponsorship role. Sponsors pay for certain exclusivity related to that which those organising the event have the right to sell. However, it goes a lot further than that here. 

For a start, Lord (Sebastian) Coe, Chairman of the London Organising Committee for the Olympic and Paralympic Games (LOCOG) has said that ticket holders to events wearing items of clothing carrying the brands of competitors to the sponsors could be prohibited from entering the events. He said it was “probably not” ok to wear a Pepsi T-shirt (Coca Cola is the competing sponsor), but “ok” to wear Nike trainers (Adidas is the competing sponsor). There has been some backtracking on that somewhat (only wanting to prohibit large groups engaging in “ambush marketing”), and frankly if all of that had been made clear when tickets were sold, then it would be fine. Yet it’s more insidious than this. 

You shouldn’t need to pass laws to host an event, but the Blair Government passed legislation, which explicitly prohibits unauthorised use of certain words. Typically, protection of sponsorship is about protecting trademarks and logos that you have registered or fraudulently passing yourself off as officially endorsed by an event. Existing laws are quite capable of doing that, but the Blair/Brown and Cameron Governments had been lobbied by the International Olympic Committee and sponsors to do more. So there are now officially banned words and phrases in relation to trade: 

“Using the words Games, Twenty-Twelve, 2012, or Two Thousand and Twelve, in conjunction with one of these words - London, medals, sponsors, summer, gold, silver or bronze - is also banned.” 

You can have a brief laugh at how this demonstrates that the quasi-authoritarian nanny-state approach to British politics, embraced by the Labour Party is now mainstream and uncontroversial among major parties. It is also illegal to take photos of the Olympics rings in public places to be used in publicity. This includes the taxpayer funded quarter million pound rings on Tower Bridge. 

To those who think the British constitutional monarchy system is a great guarantor of freedom, surely this shows it up for the emptiness that it is. The government has restricted free speech around the Olympics. Why? Well to protect the official sponsors, because they can’t possibly have a small local café selling muffins under a sign not using the logo saying “Olympic Muffins”.   Conversely, no airline other than British Airways can advertise "fly to London for the Olympics", which is patently absurd.

This overbearing, corporatist nastiness is exactly the sort of bullying that anti-capitalist protestors rightfully condemn. It’s not free market capitalism to pass laws so that sponsors don’t just register trademarks, but prohibit the use of general phrases and descriptions. So on that I’m with the protestors. 

 

How can any politician in the House of Commons hold his or her head up high and say it’s ok to pass laws restricting public usage of words that are NOT brands. I can’t say “Summer 2012” without it being seen as some insidious attempt to undermine the sponsorship of the Olympics.  To his credit, Mayor Boris Johnson has called overzealous policing of sponsorship as “insanity”, which should hopefully take the sting off the tail of cops who see new laws as a chance to grab some new criminals. Hopefully it means that some local businesses who have contributed in taxes for this grand event wont face prosecution for using words from common usage. He has pointed out the suburb of west London called Olympia and how absurd it should be if businesses around there with that name might be forced to change. Sponsors who use such laws to beat up on smaller businesses who are not using their logos and who are not claiming to be official sponsors should themselves face the opprobrium of the public. It’s not your language, taxpayers are the biggest sponsors of these Olympics. Just because you have convinced a bunch of lilly-livered politicians and gutless bureaucrats to pass laws to restrict free speech, doesn’t mean it is right. For if the Olympics has a spell of petty bullying from bureaucrats, Police and lawyers from sponsors forcing people to not use verboten words, then it deserves to be accompanied by moaning. Britain should no more be beholden to rampant corporatism, than it should be to rampant statism. 

Ironically, there has been one freedom granted - Sunday opening hours, which are currently heavily restricted for shops over a certain size, have been abolished for the period of the Games.   However, Britain doesn't have a Government sufficiently committed to economic growth to allow this to continue, as City AM's Allister Heath bemoans.