Opening Up…

This week, Melbourne is trying to get back to some semblance of normality, following 11 weeks of the current lock-down. But it’s far from “business as usual”.

Based on casual observations, people were desperate to queue up for personal grooming services, restaurants and outdoor shopping. (I did see at least one classic mullet, but I wasn’t sure if it was a fashion statement or just another case of Covid hair…)

Despite the latest changes announced by the Victorian Government over the past week, the ongoing public health provisions mean there will still be a “work from home” directive, retail and restaurants will be subject to density limits (and vax certificates) and masks will be required indoors.

One cafe in my neighbourhood, which has kept going during lock-down with serving takeaways, is deferring opening up for dining-in because they can’t get enough staff. This demand for talent within the hospitality sector means that employers are having to offer sign-on bonuses and higher wages.

While this should be good news for job seekers, the resulting upward pressure on staffing costs will likely trigger a rise in inflation (and higher interest rates?), and possibly further disruptions in supply chains.

Added hiring shortages will come from those employees who have used the lock-down to reassess their career options, and have decided to change jobs – also known as the “Great Resignation”.

Even among those employees who are returning to the office, many of them are only intending to be there 2-3 days a week. This will create a mid-week bulge in the CBD, with various knock-on effects: traffic jams, cramped public transport, and erratic trading patterns for small businesses in retail and hospitality. Employers will also be stressing how they maintain productivity levels with the adoption of extended weekends.

Finally, some industries such as tourism and international travel will take several months to get back to pre-pandemic levels – expect to see steep prices while capacity and supply remain constrained.

Next week: Crypto Regulation in Australia

 

 

Living in limbo

Please forgive the self-indulgence, but not only is this the 9th week of Melbourne’s 6th lock-down, we now hold the world record for total number of days under “stay at home” orders. I know we love our sporting superlatives and gold medals down-under, but surely this is one title that even the most fanatic supporter of our fair city wished we had conceded (to Sydney, perhaps…).Of course, I understand why we find ourselves in this situation – the government fears that the COVID pandemic will overwhelm the local health system if the virus is allowed to run riot, and before a sufficient proportion of the population has been vaccinated. Clearly, lock-down has helped to reduce the total number of cases and deaths per capita compared to many other countries. And vaccinations appear to be mitigating the impact of the Delta variant, depending on what numbers you track.

However, while most people I know have generally been supportive of the public health measures, the effect of continued lock-down is taking its toll on peoples’ income, mental health and general well-being. It feels that our collective nerves are frayed from the shifting goal posts (in terms of targets and milestones), the continued in-fighting and bickering between the States and the Commonwealth (and with each other), the constant blame games, and the drip-feed of information (despite the daily press conferences and media updates).

This current lock-down, which was initially expected to last a week(!), has been particularly hard to endure. Especially so for the majority of people who, hitherto, have been prepared to buy in to the lock-down measures (albeit somewhat reluctantly and not necessarily willingly). But to be told by our political leaders and their public servants that the growth in case numbers (and the lock-down extension) is due to members of the public breaching the public health orders (“AFL Grand Final parties”) or not complying with the lock-down measures (“household visits”) is extremely galling for those “doing the right thing” – it’s all stick, no carrot. At the same time, in the vast majority of alleged infringements there does not appear to be any consistent approach to penalties or other consequences. (So, why bother with compliance, since the lack of enforcement can lead to the law falling into disrepute?)

The government has long since given up the idea of achieving zero cases, yet seems unwilling to give much relief to people who are fully vaccinated and who have consistently observed the lock-down measures, other than the prospect of small picnics outdoors. Increasingly, the lock-down itself feels like a blunt instrument – why not apply it in a more targeted fashion, rather than a blanket measure? By now, it looks like a game of whack-a-mole as outbreaks keep popping up again (and again) in the same “settings”.

I appreciate that the government wants to keep us safe, and overall I’m extremely grateful that we have not seen the sorts of health statistics witnessed elsewhere. But by maintaining the prolonged lock-down, our elected leaders and their civil servants risk wearing out our patience and burning up any goodwill they may have accrued in the process.

We are living in a sort of limbo, with severe restrictions on the one hand, and uncertainty/anxiety on the other. Among other things, the current situation makes it very difficult to plan any trips to visit family and friends inter-state, let alone abroad. (I’ve not seen my immediate family overseas for nearly 3 years.) While I am extremely thankful that I don’t work in the “front line”, and I am very fortunate in being able to work from home, the inability to meet in person after such a lengthy hiatus does mean some of those relationships have become impaired or have become a little harder to manage and maintain.

Anyway, as I look forward to a second birthday under lock-down, I try not to look too far ahead, maintain the daily routine and walks (and enjoy the occasional glass of wine).

Next week: “What Should We Build?”  

 

 

Same, same – but different?

At the time of writing, Melbourne and the rest of Victoria are waiting to know when (if?) the current lock-down will be lifted.

Just to recap: Melbourne is presently in its sixth shut down since March of last year, and the fourth so far of 2021. All combined, Melbourne has now clocked up more than 200 days under lock-down. The present measures were introduced on August 5, originally scheduled to last one week, and came barely a week after the previous lock-down ended. Lock-down #6 was soon extended by another week, and then by another two weeks, and will now extend beyond September 2. This is not counting the “stay at home” directive that was in place for most of 2020, along with the various limits and restrictions on social interaction, workplace capacity, public gatherings, hospitality, events, sport, gyms, retail, schools, funerals and weddings. We also have a night-time curfew for good measure.

The following two pictures convey similar human sentiments, but they also represent very different responses to the situation we are living under. One is an example of the numerous messages of hope and encouragement that I see around my neighbourhood on my statutory daily walks. The other is a discarded placard seen a few days after an anti-lock-down protest.

The first reflects a “let’s grin and bear it” attitude – nobody likes being in lock-down, but we are all in this together, and if we can just remain positive, we will come through it OK.

The second is more reactive, and emotionally charged – the enforced isolation brought on by the lock-down is having an enormous effect on peoples’ mental health.

It’s hard to argue with either message….

I thought I would be able to cope better with each successive lock-down. Building a daily routine, maintaining some physical discipline (courtesy of the permitted daily exercise), managing at least 2-3 AFDs per week, treating myself to a nice restaurant-prepared meal now and then, catching up on films that I didn’t get to see at the cinema. But despite the recurring groundhog scenario, this lock-down seems different, and much harder to manage mentally.

First, the uncertainty of when it will end creates a sense of dread that we could be like this for 100 days or more (like lock-down #2). Second, the daily drip feed of data and the endless press conferences only reinforce the sense that we are not being given the full picture. Third, the sense of helplessness that for all our individual sacrifices of the past 18 months, we don’t seem to be any further ahead (if anything, we have gone backwards on so many counts). Fourth, State politicians seem to view this public health scare as a war of attrition between themselves and the voters (and their interstate and Federal counterparts). Gone is any sense that we are all in this together.

Quite apart from the cracks in Federation that the pandemic and its response has exposed, entire sections of the community are being driven apart and/or pitted against one another. Despite the so-called “National Plan” that the Commonwealth, State and Territory governments have all signed-up for, it’s clear that individual Premiers each reserve the right to interpret it differently, and will continue to impose internal border closures if they see fit. So, while Victoria and New South Wales seem aligned on this National Plan, Western Australia and Queensland in particular are more circumspect. Then there is the “race” to vaccinate their respective populations (or, as has been said a few times already, “our State citizens”, rather than “our Commonwealth citizens”).

At what point will the 70% and 80% vaccination levels be achieved to herald the promised social and economic freedoms? Is it the % of total population, or only the adult population, or only the eligible population, or only those between certain ages? Is it going to be calculated Federally, or at the State/Territory and/or LGA level? What about mandatory vaccinations for essential and front line workers, and those that have face-to-face dealings with the public? What about employers who require their staff to be fully vaccinated, but face resistance from unions?

Continued lock-down risks becoming a blunt instrument, and a tool of first (rather than last) resort. As such, it also risks alienating the majority of the population who are doing the right thing, in observing the public health directions and getting vaccinated (like, where’s the benefit?). And a prolonged lock-down risks undermining the efficacy of the vaccine, so we’ll need booster shots before we know it!

It seems that Covid19 is challenging our notions of the social contract between the government and the governed, and even testing the social license to operate we grant to big business (especially monopolies and cozy duopolies). The pandemic is also demonstrating the limits of individual responsibility and accountability, and potentially undermining the duty of care we owe to one another. If I knowingly, recklessly or carelessly (and as a result of breaching public health orders or OH&S measures) infect my family, my neighbour, my colleague or my customer, am I culpable? Does that mean I forfeit certain of my rights, especially if infection leads to death?

Just on the data, another reason the current lock-down seems different is because the information is being presented is not the same. Last year, everything was about the R0 number, flattening the curve, and “double-donut days”. There was also confusion over agreed terminology for “clusters”, “unknown cases”, “hot spots”, “red zones”, “complex cases” and “linked cases”. Politicians and bureaucrats talked about “settings”, “circuit breakers”, and “gold standards” for contact tracing. This year, it’s all about the “number of days infected”, “chains of transmission”, “mystery cases”, as well as the number of tests and vaccinations – much less analysis, it seems, on the number of confirmed cases per 1,000 tests or per 1,000 of the population, recovery rates or deaths as a percentage of cases.

From what I can glean, the stubborn levels of “mystery” cases can only be explained by the following:

  • more asymptomatic cases (are people building natural immunity?);
  • legacy cases shedding (a result of long Covid?);
  • longer incubation (and reporting) periods (less obvious initial symptoms?);
  • novel forms of transmission (or the virus is lingering longer on outdoor surfaces?);
  • QR codes and contact tracing not working (or the data is not usable?);
  • confusion over domestic/social/workplace/health/retail settings (e.g., extended families and multi-generational households?);
  • people being unclear about their movements (for fear of being victimised?).

Finally, I’m also not sure if lessons are being learned from elsewhere. We are still applying 14 day quarantine/isolation periods (albeit now with a day 17 test), yet in Hong Kong, for example, quarantine was extended to 21 days some time ago.

Next week: To be or NFT?

 

Is Federation still working?

As three of the six Australian States (and one of the two Territories) grapple with fresh COVID outbreaks, their respective lock-down measures reveal quite different responses to what should be considered a common problem. It’s not just the differences within their own borders, but also how they react in relation to each other in terms of classifying “hot spots” and imposing travel restrictions. It’s a fresh example that despite defining itself as a single nation, the Commonwealth of Australia remains a patchwork quilt, hurriedly stitched together from the remains of colonialism, under the pretext of “Federation”.

Federation feels even more of an artificial construct than the former British colonies themselves. In my view, the inconsistencies between each State and Territory in dealing with COVID, and their fractious collective and individual relationships with the Commonwealth, can be linked to questions of national identity, the legacy of imperialism, a lack of consensus on a Treaty with our First Nations people, and the failure of Republicanism to pave a way forward.

For a start, Australia tries to maintain four different codes of professional football – yet not every State or Territory is represented in the national competitions. Of these codes, one is essentially a Victorian competition, with a couple of other States brought in on merit, and a couple of the others only included after some fabricated interstate franchises. (And how long before a Victorian club has to relocate to Tasmania?)

Another football code runs an interstate competition, but only two States compete – and sometimes they compete in another State (just for the hell of it, or to try and instill “national” relevance?)

Cricket may rightfully claim to be a national sport at a professional level, but even the major Sheffield Shield competition excludes the two Territories.

These observations may appear flippant, but in a sport-loving nation, such examples might help explain why we don’t feel a very cohesive place – not all of us even get to barrack for our own State or Territory on the playing field!

There are many other examples of arbitrary differences between the States – e.g., unicameral or bicameral Parliaments; recognition of Public Holidays; the calculation of State election dates; the width of railway tracks; connectivity with energy grids; the minimum legal age for driving a car; the size of beer glasses in pubs; and the term for a “corner shop”.

Back in 1901, Federation must have felt like part of a grand scheme towards a modern era, designed to galvanize a bunch of colonies into a cohesive whole, and forge a new nation. But we don’t formally celebrate its existence with a public holiday. Rather, each State prefers to mark the Queen’s Birthday (albeit on different dates…) instead of recognizing the Act of Federation, which was supposed to confirm Australia’s independence from the UK. Not only that, but the “National Day” we do observe is Australia Day, which is highly contentious and increasingly overshadowed by its association with foreign invasion, imperial expansion and colonial oppression.

Back to COVID: recent events have shown that the “social contract” between the Commonwealth of Australia on the one hand, and the States and Territories on the other, is purely transactional. In respect to the pandemic, the Federal government has had two primary responsibilities: 1) international border control and quarantine; 2) vaccine acquisition and distribution. Although they have maintained closed borders, the Commonwealth has “delegated” quarantine arrangements to the States, with all the resulting inconsistencies and glaring mistakes. The Commonwealth has also fudged the vaccination roll-out (too many reasons and causes to go into here).

On the need for dedicated quarantine centres: while the States have taken on (or been lumped with) an unenviable task, after 18 months of the pandemic, I don’t understand why the States haven’t taken it upon themselves to build their own facilities, and then stick the Federal Government with the bill. If landlords won’t undertake essential property repairs when brought to their attention, I think most of us would agree that their tenants would have a valid case for getting the work done themselves and deducting the cost from the rent.

Except that the States don’t have that sort of leverage over the Federal Government (despite what Queensland and Western Australia might say and think).

In short, Federation is merely a way to distribute taxes levied by the Commonwealth – even then, this distribution is mired in political horse-trading and pork-barreling. The States, unable to raise their own revenue (other than via payroll tax, stamp duty, land tax and fees from providing certain services, issuing permits and granting licenses), are heavily reliant on Federal handouts. While this allocation is often dressed up in the guise of achieving minimum targets and standards, in reality funding is tied to political objectives.

I suppose even after 120 years, Federation can still be called a work in progress. Whatever the future debate on Australia Day and an indigenous Treaty (plus constitutional recognition and parliamentary representation), and whatever the prospect of a Republic, we may need to consider that the States, as currently constituted, have had their time and are increasingly redundant. Part of me thinks we might be better off by dissolving them (along with our local authorities) and re-constituting regional government and administration around the lands of the original settlers to this island. Just a thought.

Next week: Startup Vic FinTech Pitch Night