Newsletter Issue 36

I recently returned with my family from our sixth visit to Africa. As always on a trip like that, one is confronted with the stark reality that where we live, as in much of the western world, is very different to the rest of the planet. To see and experience things such as poverty makes one think about the root causes of such problems and ask ourselves what our individual and collective responses ought to be. Understanding the underlying reasons for such things is often the beginning of their solutions.

Indeed we are living in a rapidly changing world and such introspection also needs to be applied to such emerging problems as global climate change, the question of asylum seekers, the disparity between rich and poor in our own society and the nagging problem of global terrorism.

I did not mean to begin what is meant to be a light hearted newsletter with such weighty matters, but I don't think it does any harm to use this opportunity to draw attention to these important issues. After all, we are so often caught up in the day to day matters of our own lives that we forget about others, preferring to leave such issues for the politicians to fight about and those that are dedicated to a particular cause.

However I will move on and since I mentioned "change", here is an interesting response to the emerging and growing problem of climate change by the plumbing industry.

The plumbing industry in Australia is facing an unprecedented period of change to meet the challenge of climate change and water shortages, the Master Plumbers and Mechanical Services Association of Australia (MPMSAA) said recently.

MPMSAA Executive Director Ray Herbert said that the organisation for the past five years had been undertaking Australia's singularly largest environmental training program in response to climate change through its Green Plumbers program.

"We believe all Governments will move towards mandated water efficiency audits for all new homes and those for sale as part of occupancy requirements and the plumbing industry is already providing water audits for many home owners," Mr Herbert said.

"The training program, the result of consumer research showing people wanted environmental solutions and advice from plumbers, has resulted in some 5000 trained Green Plumbers and 2400 accredited businesses across Australia."

The installation of water tanks, water efficient toilets and showerheads, and an increasing number of grey water and recycled water systems will result in a major boost of training and professional development within the plumbing industry.

Mr Herbert said that the success of water reform long term will rely to a great extent on the quality of the work being carried out and the ability of governments to ensure the integrity of licensed and trained plumbing certification of work being carried out.

"Illegal plumbing in some cases can become an expensive unbudgeted cost for home owners who need to have it rectified, especially where it involves the installation of grey water and water tanks. It can become a health hazard for home owners unless it is carried out by registered and professionally trained plumbers."

Mr Herbert said that one of the fundamental issues facing Australia is the replacement of some three million water wasting toilets that flush billions of litres of precious drinking water annually down the drain. The older toilets use 13 litres of water per single flush compared with modern toilets using between 4.5 litres for a full flush and 3 litres for a half flush; a water saving of over 75 per cent per toilet.

People in their 50's can expect to live longer than the same group 20 years ago, are more highly educated and less likely to own their home outright, according to the Australian Bureau of Statistics (ABS) flagship publication, Australian Social Trends 2006, released recently.

The publication also says the last two decades have seen an increase in working hours for both full-time and part-time workers and in the energy used per person in the home.

Australian Social Trends 2006 provides a snapshot of life in Australia and how it is changing over time, including for the first time, an examination of the wealth of Australians.

Families and work

Fathers of children under 15 years who worked full-time in 2004-05 spent an average of 43 hours per week at work and one-third worked more than 50 hours per week. However, fathers are increasingly using flexible working arrangements to help care for their children. In 2002, 30 per cent of fathers used such arrangements, up from 24 per cent in 1993.

Average weekly hours worked have increased over the last two decades, to around 43.2 hours for men and 39.3 hours for women. Women still put in more hours of part-time work than men (16.9 to 16.4 hours, respectively) per week.

More women are working, with 53 per cent of women aged 15 years and over working in 2004, up from 40 per cent in 1979. The growth in women's employment has been mainly in part-time work. In 2004, 24 per cent of women aged 15 years and over were employed part-time, an increase from 14 per cent in 1979.

Australians growing older

Many aspects of life today for people in their 50's are different from 20 years ago. People at age 50 now can expect to live longer with men living to 80.6 years and women to 84.6 years (an additional 5.5 years for men and 3.9 years for women between 1980-82 and 2002-04).

Both men and women are far more highly educated and many more women in their 50's are in the labour force than 20 years ago (37 per cent in 1984 increasing to 62 per cent in 2004).

People in their 50's are less likely to have children living with them (35 per cent in 2001 compared with 43 per cent in 1981) and are less likely to own their home outright in (46 per cent in 2003-04 compared with 56 per cent in 1982).

Australia's population is ageing, but not as fast as some other countries, including Japan, which in 2005 had the highest median age of all countries in the world (42.9 years). In comparison, Australia's median age in 2005 was 36.7 years. Projections are that Japan's median age in 2050 will be 53.4 years compared with 45.2 years in Australia.

Our spending patterns, wealth and homes

Almost half (49 per cent) of household spending on goods and services in 2003-04 was on food and non-alcoholic beverages, current housing costs and transport. This proportion was unchanged from 1984.

The wealth of households is commonly accumulated over the working years and utilised during retirement. In 2003-04, the average net worth (wealth) of all Australian households was $468,000. The median was substantially lower at $295,000, reflecting the relatively large proportion of households at the lower end of the wealth distribution.

The home is the biggest asset for a large proportion of Australians. In capital cities, the home accounted for 49 per cent of the assets of households in 2003-04 and 40 per cent of assets for households outside capital cities.

Despite new homes becoming more energy efficient, Australians are using more energy per person. Average household energy consumption per person increased by 17 per cent between 1983-84 and 2003-04.

As more Australians move to the coast in search of a lifestyle `sea change', there will be a need for some serious planning around the changing climate, including sea-level rise, CSIRO scientists have warned.

Dr John Church, a CSIRO oceanographer and sea-level rise scientist with the Antarctic Climate & Ecosystems Cooperative Research Centre said recently that rising sea-levels could have serious consequences during the 21st century and beyond and will impact the lives of tens of millions of people around the world.

"In Australia, including the potential impacts of climate change in our dreams of owning our own coastal getaway will be one way to lessen future impacts," Dr Church said. He noted that about half of Australia's population lives within seven kilometres of the coast and that as many as 30 per cent (or about six million people) live within 2 km of the coast.  Juxtaposed with this rush to the coast is a changing climate.

Over the last century, about 70 per cent of the world's sandy shorelines were retreating, between 20-30 per cent were stable, and fewer than 10 per cent were advancing. As sea-levels rise, coastal erosion is expected to continue, resulting in the landward movement of the coastline typically at rates of tens to hundreds of times the rate of sea-level rise.

No single coastal flooding event can be blamed on climate change and associated sea-level rise.  However, increasing sea levels, potentially reinforced by increases in the number of intense tropical cyclones, as suggested in some recent analyses, means that the risk of major flooding events could increase.

Dr Church said Australians are beginning to recognise that climate science is presenting them with outcomes, and suggesting options for adaptation. Appropriate strategies and investment in coastal adaptation, if implemented early enough, can dramatically reduce the potential for economic loss and human tragedy during the 21st century, he said. These strategies could include:

• Planning (for example, to ensure escape and emergency routes are available for future flooding events and to increase the resilience of coastal developments and communities);
• Development of set-backs for regions susceptible to flooding and erosion;
• Increased beach renourishment; and
• Protection measures such as sea walls for some coastal locations and retreat or abandonment of others.

"Adaptation needs to consider not only modern urban development but also allow for the protection of historical sites and sensitive environmental areas and ecosystems. With appropriate planning we can substantially lessen the impact of 21st century sea-level rise," he said.

"We have options, but there are nations in the Pacific and Asian rim where the only options are internal or external relocation."

Our randomly selected winner for a weekend away at Hobart's Grand Chancellor is Mrs Judith Wilson. Judith sold a property back in February this year through Rob Reid and was delighted when Rob told her of her win. Congratulations Judith!

For those who tell me that their favourite part of this newsletter is the "Joke Section" I apologise, but space did not permit its inclusion. Also given the somewhat more serious commencement to this newsletter, its theme about change and some of the challenges being faced in our world, it seemed appropriate to leave it out.

As usual if you have any comments or questions, do not hesitate to contact me.

Regards,

Noel R. Towns
Managing Director