Sydney Radio Segment: 6th January, 2011

The Power and the Passion

As the Wikileaks band wagon rolls along there’s finally been some dirt dug up about tension between Australia and New Zealand.  It seems rocker turned politico Pete Garratt has used a pitch of power and passion to try and convince the US government to pull its Antarctic operations out of Christchurch in favour of Tasmania.  Some factual errors in the bald guy’s argument indicate however that he did not exactly burn the midnight oil when doing his homework.  Pete told the US Ambassador to Canberra Jeffrey Bleich that it would make sense to transfer American business to Hobart as it was closer to McMurdo Sound, suggesting that it would cut the current air travel time of eight hours in half.  The lack of positive Yankee response to the idea probably reflects the fact that Tasmania is actually 159 kms further from the ice continent than Christchurch.  Garratt’s idea also presupposed use of a faster aircraft would advantage Australia, missing the point that planes of equivalent speed are already being used out of New Zealand.

On-line GST Debate

The New Zealand Retailers Association is attempting to appropriate an Australian debate on the application of GST to on-line sales.  Currently under New Zealand law any international internet purchase under $400 does not attract Goods and Services Tax.  Local business folk are asking for what they see as a level playing field, arguing that they are losing custom unfairly to competition overseas.  Given that in Australia the laws are actually even more lax, allowing consumers as much as $1,000 purchases on line before the tax man becomes involved, I don’t think the New Zealand campaign will make that much headway.  The logistical cost of collection would, perhaps, be in excess of any gains in revenue and the political cost may also be too high.