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Old 29th May 2014, 00:56
  #808 (permalink)  
Sunfish
 
Join Date: Aug 2004
Location: moon
Posts: 3,564
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Let me tell you where failure of the Truss aviation review leads...

It leads directly to the destruction of jobs and businesses and a lack of new investment in anything to do with the aviation industry, period.

The key ingredients in Western Economies that differentiate them from Third World Economies are trust and cooperation as Francis Fukuyama observed over Ten years ago in a book on that subject. The reason for this is that transaction costs (the costs of doing a business transaction) are minimal in a high trust environment, but stratospheric in a low trust environment because one has to try and manage the risks associated with unconscionable or illegal behaviour by the other party. In many parts of the world, there are obvious business opportunities going begging because no investor or entrepreneur can trust Government or counterparties not to either steal the investment itself or confiscate the profits made.

To put that another way, there are fields ripe for planting in the Third world because the landowner is frightened that his investment of seed, fertiliser and labour will be for nothing. Confiscatory official taxation, land appropriation, "fees" and other forms of blackmail eat into his revenue.

To put that yet another way, I know of a Russian polypropylene manufacturer who refused to sell product to the West because he knew that the instant he had a stream of foreign currency - U.S. dollars, in his revenue, the Russian mafia would move in and become his "partner".

So what has that got to do with CASA? Simple. CASA operates a capricious, untrustworthy regulatory environment for Australian Aviation. The regulations are deliberately opaque, contradictory, arbitrary and deliberately capable of multiple interpretations depending on the whim of the interpreter. Enforcement is by Kangaroo court without a shadow of due process nor fairness and the administration of this entire system seems designed and constructed to benefit the regulators, not the general public let alone the industry.

CASA and now the ATSB and perhaps Airservices have totally lost the trust of the aviation industry.

Does anyone seriously doubt what I say?

The first and vital conclusion the review must draw is that CASA has lost the trust of the industry - all else follows from that, starting with the obvious immediate requirement to restore trust.

To put that another way, if that conclusion is not drawn, then nothing the review can recommend, nor the Government mandate, will make the slightest bit of difference to the current situation and further decay is inevitable.
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