1,457 research outputs found

    Subsidising fuel won't deal with long-term problems

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    Consumers only receive part of the benefit of fuel subsidies, writes FLAVIO M. MENEZES QUEENSLAND motorists have had access to a subsidy on fuel for over over a decade, introduced by the state government in order to offset the fuel excise imposed by the federal government. The performance of the Queensland scheme is worth considering now that the national debate over fuel proces has intensified. In the course of his inquiry into the scheme last year, Justice Bill Pincus found that up to a third of the subsidy, which is currently equal to 8.35 cents per litre, was not reaching motorists. As the total outlays with the scheme add up to around half a billion dollars, this means that roughly 170millionisbeingabsorbedbysuppliers.Ontopofthat,taxpayersarepayingthesubstantialadministrativecostsofacomplexscheme.Thereasonthattheschemedoesnotworkissimple:marketsdonottaketaxesorsubsidieslyingdown.Asmarketsreacttoasubsidyoratax,thebenefitisspreadthroughbuyersandsellers.Asubsidytopetrolshiftsthedemandforpetrolthatis,atthesamepresubsidypriceconsumersdemandmorepetrol.Thisoftenresultsinincreasesintheincrementalcostsofmeetingtheadditionaldemand.Sopricesriseasaresult.Theextentofthepricerisedependsonhowresponsivedemandandsupplyaretochangesinprice.Importantly,eveninmarketsthatareconsideredtobeverycompetitive,consumersmightnotgetmorethan80percentofthesubsidy.Inotherwords,thereisnoreasonwhymotoristsshouldexpect100percentofthesubsidy.Therecentlyannouncedmodifiedscheme,underwhichQueenslandmotoristswouldswipeabarcodeontheirdriverslicenceatthepointofsaletoreceivethe8.35centalitresubsidy,isalsodestinedtofail.Retailerscouldsetahigherbrowserprice,whichwouldpartiallyoffsetthesubsidy,justlikeunderthecurrentscheme.Inaddition,therewillbesignificantadministrativecosts.Itwillbeanotherschemethatdoesnotwork.Excludinginterstatemotoristsfromtheschemesoundslikeaneatidea,butitisfullofproblems.Oncethesubsidyisaddedtothecurrentprice,bowserpricesinQueenslandmightactuallybehigherthaninotherstates,andvisitorstothestatewillpaythefullprice.Treatingvisitorsinthiswaywilldonothinggoodforourtouristindustry.Andthereistheriskthatotherstatesmightretaliate,byrequiringvisitingQueenslanderstoshowIDbeforegettingaccesstopublicservices.Whatarethealternativesthen?Perhapsthebestalternativeistoeliminatethesubsidyaltogetherandspendthehalfbilliondollarseachyearonimprovingtransportinfrastructure.Thismightreducetraveltimesandresultinlesscongestion,pollutionandproducealowerfuelbillforeveryone.Followingthesamelogicasoutlinedabove,theeliminationofthe8.35centsperlitresubsidyislikelytoleadtoapriceincreaseoflessthanthefullamountofthesubsidy.Ofcourse,itisadifficultpoliticalissuetoconvincevoters,whocurrentlyfacehigherpricesforgroceries,petrolandincreasedmortgagerepayments,thattheyshouldgiveupa5to6centsperlitresubsidyinexchangeforexpendituresofthefull8.35centsperlitreoninfrastructureimprovementsthatwillonlyfeltbythepublicinafewyearstime.Nevertheless,iftheQueenslandgovernmentmadeaseriousefforttoexplaintheissues,itshouldbeabletoselltheidea.Apartfromtheattractionofaconstantandsignificantflowofnewresourcesinvestedintransportthereistheeliminationofthe170 million is being absorbed by suppliers. On top of that, taxpayers are paying the substantial administrative costs of a complex scheme. The reason that the scheme does not work is simple: markets do not take taxes or subsidies lying down. As markets react to a subsidy or a tax, the benefit is spread through buyers and sellers. A subsidy to petrol shifts the demand for petrol - that is, at the same pre-subsidy price consumers demand more petrol. This often results in increases in the incremental costs of meeting the additional demand. So prices rise as a result. The extent of the price rise depends on how responsive demand and supply are to changes in price. Importantly, even in markets that are considered to be very competitive, consumers might not get more than 80 per cent of the subsidy. In other words, there is no reason why motorists should expect 100 per cent of the subsidy. The recently announced modified scheme, under which Queensland motorists would swipe a bar code on their drivers licence at the point of sale to receive the 8.35 cent a litre subsidy, is also destined to fail. Retailers could set a higher browser price, which would partially offset the subsidy, just like under the current scheme. In addition, there will be significant administrative costs. It will be another scheme that does not work. Excluding interstate motorists from the scheme sounds like a neat idea, but it is full of problems. Once the subsidy is added to the current price, bowser prices in Queensland might actually be higher than in other states, and visitors to the state will pay the full price. Treating visitors in this way will do nothing good for our tourist industry. And there is the risk that other states might retaliate, by requiring visiting Queenslanders to show ID before getting access to public services. What are the alternatives then? Perhaps the best alternative is to eliminate the subsidy altogether and spend the half billion dollars each year on improving transport infrastructure. This might reduce travel times and result in less congestion, pollution and produce a lower fuel bill for everyone. Following the same logic as outlined above, the elimination of the 8.35 cents per litre subsidy is likely to lead to a price increase of less than the full amount of the subsidy. Of course, it is a difficult political issue to convince voters, who currently face higher prices for groceries, petrol and increased mortgage repayments, that they should give up a 5 to 6 cents-per-litre subsidy in exchange for expenditures of the full 8.35 cents per litre on infrastructure improvements that will only felt by the public in a few years time. Nevertheless, if the Queensland government made a serious effort to explain the issues, it should be able to sell the idea. Apart from the attraction of a constant and significant flow of new resources invested in transport there is the elimination of the 170 million per annum transfer to the oil industry. The Pincus inquiry showed that this slippage is inherent in the current system. Queensland’s new scheme will do nothing to change it. Nationally, the lesson from Queensland is clear: subsidising the cost of fuel is no solution to the problem of rising prices. • Flavio M. Menezes is a Professor of Economics at the University of Queensland. He provided economic advice to the Fuel Subsidy Commission of Inquiry. Photo: Andrew Jeffre

    Plastic policies

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    The equity argument for favouring bans over taxes doesn\u27t stand up to scrutiny, argue Rohan Alexander and Flavio MenezesTHERE IS BROAD agreement that Australian plastic bag consumption should be reduced. To this end, recent South Australian legislation has banned certain types of plastic bags. But other states wishing to reduce their plastic bag consumption may find a tax rather than a ban the more appropriate policy instrument. In South Australia, one of the reasons for a ban rather than a tax was the belief that a tax would impose an additional cost on households. The implied corollary is that a ban on plastic bags would not impose these costs, and thus would presumably be paid for entirely by retailers. This claim is incorrect: not only does a ban on plastic bags impose costs on households, but they are greater than those imposed by a tax. To understand the impact of a tax on plastic bag consumption it is necessary to distinguish between the initial and final “incidence” of the tax – in other words, between  who is legally responsible for paying a tax, and whom the burden of paying the tax would be passed on to. It is the final incidence that matters from a policy perspective. Economic theory suggests that except under very special circumstances, final and initial incidences do not coincide. Indeed, evidence from Germany, Ireland and Switzerland suggest that plastic bag consumption decreases as a result of a tax; and that it is both retailers and households who bear the burden of paying the tax, regardless of the initial incidence. Under a ban on plastic bags, retailers must switch to other, more expensive, options. Again the distinction between initial and final incidence is important. Although retailers would be legally responsible for providing the more expensive bags required to replace plastic bags, at least some of this additional cost would be passed onto households through higher prices or an explicit charge. Thus, regardless of whether a tax or a ban is used, households bear an additional cost.So is a tax or a ban the more appropriate instrument? A ban reduces the number of plastic bags to zero, whatever the cost. Bans on smoking in workplaces, for example, are considered desirable because the cost of even a small amount of smoking in the workplace is believed to be unacceptable. For this reason, society is prepared to pay any price to ensure a non-smoking work environment. Is the same true for plastic bags?In contrast, under a tax the reduction in the number of plastic bags is uncertain, but the additional cost imposed on households is known: it is the size of the tax. A tax more explicitly considers the cost of reduction. It allows households a choice that takes into account the cost and the benefit and results in plastic bag usage in cases where the benefit of doing so outweighs the cost. When the benefit of each additional unit of plastic bag reduction is small compared to the cost a tax is the better option; for should this cost be higher than anticipated, a tax rather than a ban would cost society less. And given that a ban supposes the cost of abatement to be entirely outweighed by the benefit for every level of abatement it is, in effect, not possible that a government advocating a ban has underestimated it. Although a number of factors must be considered when deciding between a tax or a ban, a ban on plastic bags is unlikely to be the best option for minimising the financial impact on households. •Rohan Alexander recently graduated with Honours in Economics from the University of Queensland. Flavio Menezes is Head of the School of Economics at the University of Queensland

    A prosa literária de Bruno de Menezes em perspectiva dialógica

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    Bruno de Menezes has a vast work, which goes through prose, poetry and folklore. His poetry is part of his most studied, so this research we chose to analyze two works in prose: Maria Dagmar (novel, 1924) and Candunga: cenas da migração nordestina na zona bragantina (novel, 1954). With theoretical foundation based on the works of Mikhail Bakhtin and his Circle, we examined the corpus in order to characterize this literature, the social values it conveys, the style, the discursive project of the author and architectural composition of the works. The research that now presents itself, emerged from some images, attributed by critics to the writer Bruno de Menezes, as the writer of the marginalized, the voice that comes out of the drums (Benedito Nunes), the operator of the verse (José Arthur Bogéa), the soul of the people (Abguar Bastos), the heart of the suburb, the yard and the town (Dalcídio Jurandir), the bohemian poet of Belém (Ramayana Chevalier), the proletarian poet/poet of simple people (Santana Marques), the voice of our people (Machado Coelho), Voodoo Priest of the poetry of the earth (Puget Gentil), authentic interpreter of people of color (Pedro Tupinambá), etc. All these names can be found sparsely in the magazine Asas da Palavra (1996), and in the essays in the book Bruno de Menezes ou a sutileza da transição (1994). As a result of the analysis, in Maria Dagmar, confirmed some of the epithets attributed by critics and present dialogical relations with other texts, one set by the author Bruno de Menezes, the novel as A Ruiva, the Fialho d'Almeida. In Candunga, we realize that the main concern of the work is between culture and identity, especially the Amazonian Caboclo and the Northeast, speaking in customs, tradition confirming in this way the image assigned to the author-creator as ―the voice of our people‖, ―disseminator of culture‖, and ―writer of... (Complete abstract eletronic access below)Bruno de Menezes possui uma obra vasta, que passa por prosa, poesia e folclore. Sua poesia é a parte de sua obra mais estudada; por isso, nesta pesquisa optamos por analisar duas obras em prosa: Maria Dagmar (novela, 1924) e Candunga: cenas das migrações nordestinas na zona bragantina (romance, 1954). Com fundamentação teórica baseada nas obras de Mikhail Bakhtin e seu Círculo, examinamos o corpus com o objetivo de caracterizar essa literatura, os valores sociais que veicula, o estilo, o projeto discursivo do autor e a composição arquitetônica das obras. Nas análises, tomamos como interlocutores, os críticos literários do autor, em especial, no que diz respeito às imagens cunhadas por eles, que se referem ao autor como: o escritor dos marginalizados, a voz que sai dos tambores (Benedito Nunes), o operário do verso (José Arthur Bogéa), a alma do povo (Abguar Bastos), o coração do subúrbio, do terreiro e dos arraiais (Dalcídio Jurandir), o poeta boêmio de Belém (Ramayana Chevalier), o poeta proletário/o poeta da gente simples (Santana Marques), a voz do nosso povo (Machado Coelho), Pai de Santo da poesia da terra (Gentil Puget), autêntico intérprete da gente de cor (Pedro Tupinambá), entre outros. Todas essas denominações podem ser encontradas de forma esparsa, na Revista Asas da Palavra (1996) e nos ensaios presentes no livro Bruno de Menezes ou a sutileza da transição (1994). Como resultado das análises, em Maria Dagmar,confirmamos alguns dos epítetos atribuídos pela crítica e apresentamos relações dialógicas com outros textos, um deles estabelecido pelo próprio autor Bruno de Menezes, como a novela A Ruiva, de Fialho D'Almeida. Em Candunga, percebemos que a principal preocupação da obra está relacionada entre cultura e identidade, em especial a cabocla amazônica e a nordestina, falando em costumes, tradição, confirmando, dessa forma a imagem... (Resumo completo, clicar acesso eletrônico abaixo)Secretaria de Estado de Educação do Pará (SEDUC/PA)Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES

    O universo narrativo de Maria de Menezes: paródia e transformação da realidade

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    O estudo incide sobre a obra de Maria de Menezes a partir de Três Histórias com Final Feliz e Contos Místicos e reflete sobre o modo como a autora utiliza a literatura humorística e fantástica, com características críticas, instaurando a paródia. A autora reivindica a relevância da literatura e da leitura para o campo da consciência crítica que permite transformações éticas, de acordo com a modernidade. Neste percurso de abordagem, realiza-se uma revisão da literatura com o propósito de compreender a emergência do Fantástico e da Ficção Científica na produção ficcional da autora e na ligação que estabelece com a Ficção Especulativa. Ao analisarmos as fronteiras do Fantástico, ser-nos-á possível observar as diferenças entre cada género, o fantástico, o maravilhoso e o estranho. A obra de Maria de Menezes tem como ponto fulcral pensar o quotidiano, empregando o recurso a figuras do maravilhoso, tais como o vampiro, a fada-madrinha, a fim de mostrar o humor e ironia existentes no nosso mundo.This study focuses on the books os short stories Três Histórias com Final Feliz and Contos Místicos by Maria de Menezes and it will reflect on the manner the author handles the humorous and fantastic literature, with critic features, setting up parody. Maria de Menezes defends the significance of literature and reading with a critic consciousness extent, which can go affect ethic changes according to modernity. Throughout this approach a review in literature occurs with the intent of understanding the emergence of The Fantasy and Science Fiction on the author´s fiction work and on the connection with Speculative-Fiction. The analysis of the Fantasy boundaries will lead to the consideration of the dissimilarities between each genre, the fantasy, the marvellous and the strange. Maria de Menezes work has its main focus on the telling of the her everyday life using items of the marvellous, such as the vampire, the fairy godmother, with the purpose of displaying the humour and irony in our world

    Andrade Bezerra: o erudito gentil

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    The main characteristic of José Rafael de Menezes' vast bibliography is his ability to profile illustrious lives in carefully adjusted historical summaries. Alongside essays, some history books, novels and poetic texts, the author from Paraíba reconstructs with affectionate and deeply generational care his masters of fortunate coexistence.Principais característica de vasta bibliografia de José Rafael de Menezes, a perícia de perfilar vidas ilustres, em sínteses de cuidado ajustamento histórico. ao lado dos ensaios, de alguns livros de história, de romances e textos poéticos, o autor paraibano reconstitui com zelos afetivos e profundamente geracionais seus mestres de convivência afortunada

    Article 2 of the ECHR, the Investigative Obligation and the Shooting of Jean Charles de Menezes

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    In July 2005 Jean Charles de Menezes was shot dead by an elite police firearms unit of the Metropolitan Police. At the time the police (wrongly) suspected that de Menezes was one of the failed London suicide bombers. Article 2 of the European Convention on Human Rights permits the intentional deprivation of life only where the use of lethal force is for a legitimate aim and “absolutely necessary” (as per Article 2(2)). Moreover, it imposes a positive obligation on the state to protect life (as per Article 2(1)). In a previous article in this journal [2008] 4 Web JCLI the author assessed the de Menezes shooting in the light of these two issues and, on balance, found that the killing was not unlawful (Turner, 2008). However, notwithstanding this finding, he went onto question whether the positive duty required some relaxation of Article 2(2) in cases of suicide bombings, reflecting a more general obligation on state authorities to protect life. This second article continues the theme of the first, in that the shooting is assessed on the grounds of its human rights’ compatibility, but from the perspective of another element of the positive obligation of Article 2(1): the procedural duty imposed on state authorities to investigate certain killings. The author finds here that the subsequent inquiries into the de Menezes shooting were lawful. Nevertheless, for the purposes of protecting life, and the continued accountability of state agents (especially those killings for which the police are directly responsible), this element of the positive obligation – the procedural duty – should not be relaxed in the fight against terrorism

    Nothing exceeds like success

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    Greater transparency is the fairest way of avoiding dubious lobbying practices, writes Flavio MenezesTHE BLIGH GOVERNMENT has announced a ban on success fees for lobbyists. This follows the revelation that former Labor and Liberal party figures have received a success fee for securing Queensland government contracts for clients. Commentators have questioned whether simply banning success fees is enough, or more should be done including the possibility of simply instructing ministers not to deal with lobbyists who were previously MPs or staff of ministers.A ban of success fees will be beneficial, but it is no panacea. These fees are common when it is efficient to transfer risk between a party requiring a service (or advice) and the service provider (advisor). For example, by paying a real estate agent a sales commission, the seller of a house transfers some of the risk of not selling the house to the party best placed to manage the risk: the real estate agent. No sale, no fees. This encourages the real estate agent to exert effort to achieve a sale. As this example suggests, success fees are appropriate when it is possible to measure and quantify success in achieving a particular goal (for example, the sale of a house and the price outcome) and when success is at least partly related to the efforts of the advisor involved. Indeed, there are many other industries that use success fees regularly, usually in conjunction with a non-contingent payment (a retainer or an hourly rate). Governments, for instance, pay success fees to advisors that are commonly estimated to be in the range of between 0.02 per cent and 3 per cent of the transaction value, depending on the country concerned, the size of the transaction and marketing conditions. Success fees were used extensively during the 1990s Victorian privatisation process. There are many other industries in which success fees are common. So why aren’t success fees appropriate in the context of lobbying for government contracts? In such circumstances success fees might lead to excessive (that is, inappropriate) levels of effort exerted by lobbyists in favor of their clients. This can be particularly problematic if lobbyists have close connections and influence over current government officials. Indeed, there are many jurisdictions outside Australia (certain states in the United States, for instance) where such fees are banned in the context of political lobbying. The difficulty is that success fees simply exacerbate an existing problem: former government officials taking unfair advantage of their contacts and influence within the existing government to guarantee outcomes that otherwise would not eventuate. The widening of the gap between public officials’ remuneration and the rapidly growing top salaries in the private sector seems to be at least partially to blame for this state of affairs. This might lead some to suggest a simple solution: ban former government officials from acting as lobbyists. This is not a practical solution for at least two reasons. First, where would one draw the line? Would we ban former government officials from holding any positions in private companies that deal with government? Given the share of our government in the economy, this would limit employment opportunities considerably. Second, by reducing the future employment possibilities of government officials, we would limit the pool of talent that is attracted to local, state and federal government. Faced with a ban on future work in any private firm that deals with government, a smart, well-meaning and ambitious young person will think twice before joining public office as doing so will considerably limit the options that he or she can pursue later. The solution instead is to reinforce our existing institutions and regulations so as to promote further transparency. Many government officials already face a cooling-off period preventing them from conducting activities linked to their previous jobs for a period of time. The Queensland government and other state governments already have a register of lobbyists that require information such as the names of the companies for whom lobbying is undertaken, the identities of the lobbyists, and the nature of the remuneration.  Providing further transparency might be accomplished, for example, by requiring government officials to publish details of their daily agendas on the internet. Cooling-off arrangements can be made more stringent by allowing officials to go on extended paid leave (but not undertake any work) after leaving public office. Although costly for taxpayers, this would reduce the disadvantages from holding public office. Finally, the register of lobbyists could be extended to include all parties involved in dealing directly with ministers and senior government officials, not only those employed by third parties. This would require lobbyists such as government relations managers employed directly by firms to be listed in the register as well. Although not as likely to generate headlines as the banning of success fees, improving existing regulations to promote further transparency is likely to have a more pronounced and long lasting effect. •Flavio Menezes is Professor of Economics at the University of Queensland Photo: Josh Hodge/ iStockphot

    Constituinte assusta empresario e não define modelo

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    Conteudo: empresarios reforçam lobby; botelho aponta entulhos; paret quer discussão ampla; intervenção e clientelismo continuam; restrição a tecnologia gera polemica; area financeira progride; estrangeiros não querem a reserva; flavio menezes lastima trabalho inuti
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