Just a quick note to say that I’ll be joining a host of great musos this Thursday and Friday night at the Hopetoun Hotel, Surry Hills, to perform songs from Big Star for the nonzero records/FBi radio fundraiser show.

If you’re on Facebook, you can get more details on the event page.

On the Thursday night Fuzu (my band) is also playing a 40 minute set kicking off around 9:15pm. But if you can’t make that, we’re also playing a headline show the following Wednesday at the Hopetoun (Facebookers: details here).

• Why give music away for free? - Interesting discussion on the "give music away and make money elsewhere" meme. I've left a few comments in the thread - but worth a read if you're interested in the topic.
• Tesco Develops Tool to Eco-Screen In-Store Materials - From the article: 'Retailers often think about the environmental impact of their buildings, but not the items inside the store, such as signage, shelving, service desks, and trolleys, said Tesco environmental design manager Richard Denton. “[We] didn’t want to stop at the door,” he said.' Good to see another big corporate looking into the impacts of their core business, not just their own operations.
• Australian Government response to ALRC Review of sedition laws in Australia - December 2008 - The Government will be removing "sedition" from the Criminal Code. These laws could be used to prosecute legitimate dissent in Australia, so their removal is a big step forward for civil liberties.
• Low emissions coal technology: news, views & facts - Propaganda from the coal industry about how much they're doing about CO2. So hollow it would be funny if people weren't likely to buy into the BS. There is no such thing as "clean coal" - even if sequestration works, it only delays the inevitable…
• 350.org - 90-Second Animation For Global Day of Action - Cool animation/video/visualisation in support of a global day of action on global warming.

These links come from my Delicious feed.

I received a response from Tanya Plibersek to my previous letter re: clean feed just before I went away on holidays, and just after the Government announced their woefully inadequate targets for CO₂ reduction.

Below the fold is my follow-up.

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I spotted these just before Christmas, but didn’t get around to blogging them:

Millionaires factory keeps smiling minus the bonuses.

A $1 BILLION cut in the bonus pool split by Macquarie Group’s 13,800 staff, including the controversial multimillion-dollar rewards received by its senior executives, helped the investment bank deliver a better-than-expected half-year profit, it emerged yesterday.

The cut still allowed for $1.3 billion to be distributed as bonuses - an average of $94,000 per employee. Of course this would be split more unevenly in practice. Before the cuts, the average would have been$173,000 per employee. Hardly “minus the bonuses” as the headline suggests…

But then comes the news:

Macquarie Bank sacks 100 investment bankers.

MACQUARIE Group has sacked almost 100 investment bankers and advisers in a savage day of job cutting across the diversified bank.

…There were suggestions yesterday that Macquarie could end up cutting up to 1000 of its 13,000 employees around the world.

$1.3 billion in bonuses (which of course must be much smaller than the company’s profits) followed by 100 sackings. Seems the “greed is good” mentality is still alive and well.

The cash bonus mechanism rewards short-term thinking with sometimes obscene amounts of cash. Seems to me if the bonus schemes were more long-term focused (e.g. share options and other mechanisms), rewarding employees based on the long-term profitability and viability of the business, perhaps the rush to sub-prime investments would have been tempered with more cautious risk analysis.

Given how quiet I’ve been around these parts of late, I thought I might post a quick “what’s been happening” post.

• Fuzu have finished recording and mixing our second EP - tentatively titled “The Point”. We’ll be mastering later this month, and hopefully completing the artwork shortly after. I’ll hopefully have a follow-up to my budget post soon reflecting the actual budget.
• I’ve been working solidly on two big projects (one for Inspire Foundation, another for UNSW. This has taken up a big chunk of my time (as one might expect) - but I hope to be a little less frantic come February.
• Thanks mostly to Timo Rissanen, further work has been done on refining the pattern’s for Arketype’s first range, which will be launched for Winter 2010 now, instead of Summer 09/10 (I’ve been a bit too busy with the ‘day job’ and have missed some deadlines). We Buy Your Kids are working on the graphic designs for the range - I’m looking forward to seeing what they come up with given the logo treatment Sonny and Biddy, the duo behind WBYK, came up with (more on that front soon).
• Holidays - I’ve taken 3 weeks off work to visit family in Queensland - which was a wonderful break (that’s not quite over yet…).

Recent reading

I’ve also been doing a lot of reading of more “popular science” accounts of network theory, prompted in part by an ABC doco on the topic, and also economics and the history of money. This was in part prompted when a friend of mine sent me this video on money.

After reading Peter Bernstein’s A Primer on Money, Banking, and Gold it seems that many of the claims in the video are reasonably accurate.

I also recently finished Clay Shirky’s Here Comes Everybody which looks at some of the societal changes being spurred on by networks. Especially interesting to me is the notion of “reduced transaction cost” for organising collective action.

George Soros’ The New Paradigm for Financial Markets was also an interesting read, albeit a bit repetitive. What’s most interesting is that an über-capitalist such as Soros would have such disdain for the models and assumptions underpinning the industry that he profited so well from.

Critical Mass by Philip Ball is a great overview of what he describes as an emerging “physics of society”. The book covers network and game theory, and emphasises the extent to which power laws and “phase transitions” apply to social phenomena. It also weaves into its narrative the ideas of many economic and social thinkers in history - which was fascinating to me as someone who’s not overly familiar with many of their contributions (at least not directly/explicitly).

Continuing the theme I’m currently reading Duncan Watts’ Six Degrees: The Science of a Connected Age. It delves much deeper into “small world” networks (popularised by the “Kevin Bacon” game) which are covered more lightly in Critical Mass.

It seems every year, in the lead-up to Christmas, we hear about how “retailers are doing it tough” and that the Christmas period is crucial for retailers, so we, as consumers, had better “spend, spend, spend”.

This year was no different, except the “global financial crisis” had “hit retailers hard” and that, more than ever, we needed to spend, spend, spend. Never mind the fact that families might need the Rudd government’s handout for bills and savings - it was our duty to spend to save the economy.

Before the Christmas rush I commented to Ang (though I wish I had have blogged the prediction here) that by the time Christmas was over we’d hear that spending was up this year, if not to record levels. Why? Because I’ve noticed that this happens every year.

Last year it was the weight of growing interest rates denting consumers’ spending. This year, the economic crisis. I forget what it was the year before that.

I did entertain the thought that the financial “crisis” might, in fact, have an impact this year - but I posited that we’d still see a surge in spending all the same.

Well… the scare tactics appear to have worked.

According to the salesman at The Good Guys near my Mum’s home, large LCD TVs have been “walking out the door” (hardly an objective measure I know). And Gerry Harvey is surprised that sales had increased 8.7% over the same period last year.

Mr Rudd must be very pleased that his bonus is being spent so wisely…

Now, I am aware that retailers have experienced a significant decrease in spending over the past few months and that some, especially I suspect smaller operators, will actually be “doing it tough”.

I don’t know about you, but I just find the whole “it’s your duty to spend” line a little sickening and that the justifications for why we should are wearing a little thin when retailers continue to report record profits even after claiming that they’re “doing it tough”.

I’d like to see journalists, when reporting such statements, take a look at the profit figures across the previous year and put it all in a bit of perspective: “Despite the fact that David Jones posted a record profit last year, the best in it’s history, the retailer says its preparing for ‘tough times’.” (tough times = “net profit after tax … in line with previous guidance of five to 10% growth”.)

I think it’s all very much a sign of our myopic focus on growth at all costs (hilariously captured by this YouTube video) as though the environment is just a never-ending source of resources and that permanent, endless growth is possible.

It’s quite simply not possible - the environment has limits that are already stretched by our current consumption habits. Sooner rather than later we’re going to have to face that fact.

Perhaps we should be looking for alternative models and starting to look at the economy from a different perspective? Models and perspectives that don’t rely on infinite, unsustainable growth fueled by private, debt-enabled spending - which, after all, got us into this mess in the first place.

• Children's welfare groups slam net filters - Even child welfare groups are calling on the government to spend their money in better ways…
• GetUp! Save the Net - GetUp! are supporting efforts to stop the Government's planned internet filter.
• The benefits of certification - My first post on the Green Loves Gold sustainable business blog - looking at certification, in the clothing/textiles industry in particular, and why it's important for sustainable businesses
• Is the panic over Detroit real? (Scripting News) - Interesting reading - in a sense a response to my recent "let them fail" post.
• Anti-Terrible Laws - GetUp action protesting and asking for the repeal of the terrible, draconian and damaging legislation introduced by the Howard Government pertaining to "anti-terrorism" action.

These links come from my del.icio.us feed.

Originally posted on the Green Loves Gold blog.

When I was thinking about starting a sustainable business one of the things I looked into fairly early on was certification standards. In the clothing business there are a growing number of standards and certification programmes that need to be considered.

Standards in the textile industry

In the industry that I’m entering with Arketype, there are a number of potentially applicable standards - to name just a few:

• Fairtrade Cotton - Fairtrade certification for the raw fibre and textiles production
• Certified organic cotton schemes, such as USDA National Organic Program or EU 834/2007 (which takes effect in Jan 2009) - covering raw fibre production using methods that are much less impacting on the environment
• Oeko-Tex - testing and certification to limit use of certain chemicals
• Homeworkers Code of Practice - an Australian programme that accredits garment manufacturing as “No Sweatshop” (which is part of the Fairtrade cotton standard for garments manufactured in Australia)
• NoC0₂ - programme for auditing, reducing and offsetting carbon emissions

Of course there are many standards and logos which can be quite overwhelming for business owners and customers alike. The good folks at Eco-Textile News have produced an excellent guide for the TCF industry that outlines the major standards for that industry.

Even so, businesses can’t carry out all of these certifications, especially so during the start-up phase where capital (and time) are often limited. So the challenge is to be discerning about which programs we engage in.

Of course, we can also incorporate the principles of the various other programs into our practice, even if we’re not in a position to carry out certification against those standards.

Certification counter-acts the tyrrany of distance

I attended a talk recently by a member of a local food co-op and talk turned to “certified organic” produce. Many of the local growers are using organic methods, but not all are seeking certification.

In discussing this, the member explained that one of the aims of the co-op was to connect local growers with their customers directly. In breaking down this distance - creating a direct, personal connection - he argued that the need for certification is greatly reduced as a relationship is built up and trust develops.

If customers can talk directly to the farmer about their methods, perhaps even visit the farm etc., the farmer is less likely to break that trust as their customers are people they know.

In other words, it’s when distance is introduced - when the supply chain gets between the customer and the producer - that certification becomes increasingly important. The longer the supply chain, the more important certification becomes. I find it a thought-provoking alternative “approach” to achieve the same goal as certification.

For example, at a recent event held by my primary supplier, Rise Up Productions, the makers of our products were there at the event, and were introduced to us. Bronwyn Darlington, Rise Up’s founder, often visits the manufacturers and suppliers of our textiles in India - she has a personal connection to the producers - radically reducing the distance between producer and customer.

This builds confidence in me (the customer) that Rise Up are doing the right thing.

Why should we certify?

Interestingly, though, Rise Up are provide certified organic and Fairtrade cotton products, and are accredited under the Homeworkers Code of Practice. So why, given her close connection to producers, is Rise Up going through the certification process?

I can’t speak for Bronwyn and her team, but for me, certification is still important even under this circumstance for one reason: customer confidence.

Thanks to the effects of greenwashing - essentially an abuse of trust by companies who do more talking than walking - certification is essential to build confidence that what we’re doing is not just a marketing pitch and that our claims have been verified by an independent third party.

Without it, we risk being tainted with the same brush as other companies that aren’t as committed to social and environmental outcomes, but are trying to jump on the bandwagon of growing consumer interest in sustainability.

I have often seen a lot of debate about the merits of downloading music for promotion of a band and how downloads are changing the music landscape.

Generally I agree that the opportunities for bands are much greater in this day an age than they were previously. In fact, our first EP is released under a Creative Commons license because of this belief - anyone can share our music with their friends, remix it (as our friend Karoshi just has - can’t wait to share that with you!), and the like.

What I haven’t seen is a lot of discussion of how much it actually costs to record and produce music of a standard suitable for “releasing” (radio play etc.). I get a sense that there’s a bit of a misconception that, with the advent of cheaper computers and audio recording hardware and software, that artists are able to produce their music really cheaply, which isn’t actually the case.

The other suggestion I see a lot is that bands can release music for free and make money through other means (performance fees etc.). This I think is in some way related to the first misconception, but also is problematic in its own way.

What I want to do in this post is share my experience of producing music with my band, Fuzu, and having a look at what it costs to release an independent EP.

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I decided to write to my Federal MP, Tanya Plibersek, about the Government’s plan to introduce an internet filter (which I’ve written about previously).

Over the jump is the letter itself - but I would also recommend checking out the Electronic Frontiers Australia briefing on the issue.

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