Telco’s want in on Daily Deals

It was interesting to learn that O2 is now going to get into daily deals. They will be the first British Telco to enter this market and according to the Financial Times, they are going to invest £6 Million into their daily deals service with the expected participation of 3,500 high street brands. Shaun Gregory, O2’s managing director of media, said that their opt in process was going to be less clunky than that on Facebook and Foursquare etc. and would not require check ins. This effectively means it is not a location based service at all, but yet another spin on the Daily Deals I wrote about in my blog yesterday.

Ironically I and many other people in the telecommunications industries over the years have been trying to convince local telco’s to support payment for products via mobile, including vending machines, pointing out the enormous value in clipping the ticket on transactions. Probably about 12-15 years ago I was able to buy Coke from a vending machine at the local Ericsson office, but it was only ever a Beta service.

Amazon is also getting in on the act in the USA with Amazon Local which is yet another spin and hardly local given that it works in exactly the same way as the regional deals every other Daily Deal site offers, noting to do with check ins. It will at least support local businesses in the same way as other sites does with vouchers etc to be redeemed in local eateries and stores with the same debatable results. Amazon certainly knows the value of clipping the ticket as I mentioned in an older blog with a link to a Harvard Business Review Clip of John Donahoe explaining what his business model is, and I can tell you it is now selling books.

Eventually if you keep following this blog, I will get to the point of the value of using Location Based Marketing instead of Daily Deals. This is starting to seem a whole lot like the boring unimaginative reality TV shows that all the networks are rolling out. It’s much cheaper to imitate than to innovate and of course you are encouraging them by watching, because if you didn’t watch, then they wouldn’t be able to get advertisers to promote their daily deals businesses!

Coping with stress in Christchurch

Never before have we experienced a situation such as exists in Christchurch today. As was seen on Campbell Live last night people are at breaking point. Even the ambulance officers who were interviews, some of whom  had lost their own homes appeared to be close to losing it, fighting on because they are trained to, because “my uniform says I am there to help”. Men saying they “Cried last week for the first time in 20 years”.

The situation is looking incredibly serious. We have our 2nd largest city full of people suffering from Earthquake Syndrome. Interestingly it is very difficult to find information about the psychological impact from a New Zealand perspective, which I blogged about yesterday it seems as if the authorities are keeping it as quiet as possible, worried that it will get worse if people start talking about it.

In the absence of anything else, I think that is exactly what they should be doing, but more on that in my next blog. Maybe its naive of me, but today as a citizen of NZ with no mandate or authority I emailed Dr Martin Seligman of the Positive Psychology Centre at Penn University. In the US they experience repeated incidents of natural disasters in certain areas and of course with their military forces they also have extensive experience in PTSD. In NZ we really have no skills to understand or deal with repeat natural disasters and their human psychological consequences at a level like this, which in my opinion is why we are doing very little about it. We aren’t coping with the demands of repairing buildings, deciding which suburbs stay or go. We still aren’t dealing with the damage to buildings and the EQC is not paying trades people who are close to losing their businesses for trying to help people keep their homes habitable.

If you haven’t seen the Campbell Live tent recordings where they left people in a tent without any interviewers prompting them, to say how they feel, watch the following video and tell me you are not moved.

Post Traumatic Stress in Christchurch and EQC

I was ashamed and embarrassed a few nights ago. I was lying  alone in bed listening to talk back radio (as my wife was in hospital) and heard a woman from Christchurch talking to host Kerre Woodham about how she had not had any response from EQC or anyone else since the first earthquake.  The bottom of her Kaiapoi house was basically destroyed and she was at her wits end. She was crying and pleaded “I need help”. Kerre handled the situation extremely well, took the woman’s number and said they would do what they could to help her offline.

Then a couple of nights ago I watched TV3′s Campbell Live which interviewed loads of Christchurch residents who were in a similar situations and trades people who were going broke providing plumbing and drainage and other services on behalf of EQC, but had not received any payment from them in some cases dating back to last year’s first quake in September. The head of EQC tried to tell him that they were doing everything they could, but tried to say that it was the worst incident in the world since EQC was founded in 1947, then he said the worst in NZ.

I don’t give a damn how bad it was, that is why NZ taxpayers have been paying EQC levies for years. The whole point of having such an organisation is to ensure that when the inevitable disaster occurs, the country is prepared in every way. This includes experts to evaluate damage, the capital and resources to ensure repairs are made as quickly as possible, no excuses. It doesn’t matter that there was more than one quake, this is what we paid for. So where has the money gone that we paid all these years?

It has been well known by Civil Defence, Police, Health Services and others that it is not just about repairing buildings and digging up liquifaction, its about the people and nothing seems to be happening. Behind closed doors there is talk about increased use of drugs and alcohol, increased domestic violence, people freaking out every time there is another after shake. People don’t know what to do. They can’t leave their broken homes because they have mortgages on them and of course no one wants to buy them.

What we have is a quite unique situation in that we have an enemy we can’t see, situations we can’t predict and the Government and Insurance organisations simply are not prepared. We can’t deal with the physical manifestations and I don’t think we know anything about dealing with the human emotions. Even in the military you know who your enemy is and you can pull out. You have at least a feeling that there is someone in control and whilst they haven’t always been great in dealing with PTSD, they recognise it and have systems in place.

Recently I listened to an excellent Harvard Business Review Ideacast podcast with Martin Seligman, director of the Positive Psychology Center at the University of Pennsylvania and author of the HBR article Building Resilience. He is also the author of Flourish: A Visionary New Understanding of Happiness and Well-being. He spoke of a new program that they had been working on with the US military, which had amazing results with their soldiers. It was heartwarming. Unfortunately the full report has yet to be released to the US Government, but the anecdotal reports were amazing. This should be something that the NZ Government needs to be looking into.

I look back to the first news coverage where Christchurch Mayor Bob Parker and Christchurch Cathedral Dean Peter Beck were saying the bricks and mortar can be replaced, but its the people that matter. Well herein lies my problem. We aren’t even dealing effectively with the buildings. We are hardly touching the broken people! They can only be staunch for so long and if we don’t help them very soon, we are going to have a generation of traumatized people.

So I say to the Government, to EQNZ, to the city councillors, to my fellow Kiwis: This isn’t good enough. No more excuses. We have paid our taxes for years, in good faith expecting that the money would provide for resources and expertise when they were needed. We were told the big one would come and we would be ready. If you can’t deal with it, bring in people and resources who can. We aren’t the only country to have disasters, they happen all over the world, many much worse than Christchurch. Have the grace to accept you don’t know how to deal with the situation and find people who can.

If you can’t do that, its election year and you will have to fall on your swords and we will find others who can. The current situation may not be man made, but our response to it is a disgrace. Kia Kaha Christchurch. Thanks to the media for making us more aware of what is and isn’t happening. Maybe now we need to tell the world stage that we are not coping and we need specialist help.

Have a read of the comments left on Campbell Live’s Facebook Page. This tells the story that our Government departments are not addressing or are trying to minimize. The situation is not under control and it is not just a few people who haven’t been seen to yet. This is a crisis. What are you going to do John Key? The Rugby World Cup will not be enough of a distraction.

Creating jobs with FIT for renewable energy

So how about this picture. If the Government gives us interest free loans to install solar panels on roofs, we could reduce the need for expanding coal and oil based electricity, whilst maintaining our geothermal and hydro production.

The Government would set up Feed In Tariffs enabling power companies to purchase spare power units to feed in to the grid to supplement its own resources and those of the community as and when required.

The technology would include smart meters where appliances and power consumption may be monitored by the consumer This is already available in NZ from companies such as SmartNow. This is very important because it educates consumers of all ages  as to the impact of each household appliance.

Smart Meter

You would be able to monitor this on your SmartPhone as well as the touch screen in your home, perhaps even control appliances remotely. Now you will know if you turn your 3 TV’s off instead of having them on stand by, exactly how much energy and cost you are saving.

Many of our household devices are developing sufficient intelligence to be turned on and off remotely. This can apply to anything from your stove or microwave, to your TV Set Top Box, washing machine, heating etc.

Kiwis are very clever. With a little encouragement and support, we could have people coming up with new technologies for smoothing power, sharing and reticulating, designing solar panels that look good and work more efficiently in our environment.

Whole new industries and thousands of jobs would come out of this. Educators, estimators, designers, manufacturers, installers, inspectors, service people, finance companies, new boutique electrical companies, to name a few.

New Zealand is an island and we can be potentially isolated from gas and fossil fuels, especially if the worst happened and a serious war broke out somewhere on the planet.

Do you think that in the Middle East, Europe or USA, they would be saying, oh don’t forget New Zealand, we must set aside x number of tonnes of crude for our antipodean mates down under? But I digress. We are smart people and I think we could create not only some serious domestic growth, but our inventions spawned from this adventure could also contribute to some huge potential export revenue through the innovations that we would produce.

We also made a commitment to being clean and green. Digging up coal and gas doesn’t exactly honor that commitment, although I agree we need the money. Maybe we can’t do it with solar and wind alone, but if we could produce even half of our requirements from our roofs whilst at the same time reducing power consumption through smarter use and education, wouldn’t that be cool?

We could also lead in international design and R & D, with companies like Fisher & Paykel in the development of new technologies that burn much less power, including heating, consumer electronics and more. We need revival of new companies like Gallagher, Rakon and Taits, which have shown that we can be world leaders in technology. Those number 8 fencing wire companies we are so proud of.

The problem is that all of this needs to start with the politicians and all I seem to hear from them is that the coal, oil and gas is worth a lot of money and we should sell them. OK, if we need to do that because New Zealand is insolvent, then do it, but put the money earned into renewables, try to make ourselves self sufficient and then develop export revenues by exporting the technologies we built and developed locally, exploiting our IP. Kiwis are smart people.

Come on National, Labour and Green Parties, lets take a long term view beyond the next election. Change only happens when you do something different. Make it happen and you can have the credit if that is what drives your ambitions, but lets show our leadership.

I didn’t mention tourism, but I don’t think people really buy into clean green anymore. Lets show them we can be clean and green and beautiful and then generate export revenue out of our new skills and industries.

As a footnote, a quote by Farrell J. January 2011 on the Ontario FIT which started in 2009 from New Rules Project:

Ontario’s clean energy program encourages local ownership and distributed generation, in part to broaden support for renewable energy and in part to capture the increased economic impact generated from local ownership.

The domestic content requirement has already resulted in the promise of 43,000 jobs and dozens of new manufacturing plants to support the 5,000 MW of new clean energy.

As a footnote, imagine if the panel didn’t have to be on your roof, but could be on every one of your windows and you could see through it? That’s what MIT is hoping for. 

What FIT’s could do for NZ

Having teased the concept of Feed in Tariffs over the last few blogs  I’d like to get a bit more detailed. So in NZ the government has provided subsidies for roofing insulation, especially for older houses that were not built as efficiently from an energy perspective.

That is good in that it may reduce the need for heating, which is the biggest consumer of energy. A large percentage of energy sources pollute the atmosphere, damage the ozone layer and produce carbon waste. I’ve explored the fact that solar power is a renewable source that produces very little waste, mainly in manufacturing, packaging and installation, marginal issues.

The ideal scenario for me is interest free loans from the Government to cover the cost of purchase and installation of solar panel systems for both domestic and business. There are some lessons overseas where businesses have exploited the opportunities for subsidies and rebates and in some cases they have benefited from the interest free finance and feed in tariffs more than the public. This needs to be considered, but even where that happens, they are still producing energy in forms preferable to oil and coal and other non renewable or potentially dangerous sources.

So the basic idea is that consumers can get an interest free loan to have solar panels and related equipment installed in their homes. The systems include meters and technology that allows people to understand how electricity is being used in their homes, where is it being wasted. They can use the power they generate for free (keeping in mind they do have a long term loan to repay) and when they have excess power, they can sell it to the power companies for a tariff that is mutually agreeable.

A key point that I have raised through out this discussion is redundancy in the case of emergencies. Every time we have had a major emergency people have been without power. As recently as the aftershocks in Christchurch yesterday 17 April 2011, parts of Christchurch were without power for a couple of hours, but previously it has been days and weeks.

UK has had local FIT’s for a couple of years and other countries have had them for several years. There have been many benefits from this. One of the big ones that people don’t automatically think about is job creation. This happens at all levels. Industries to benefit include finance, manufacturing, installation, inspection, education and more. One of the great things about not being first in the industry, we can get our clever Kiwi inventors coming up with new technologies and inventions which will find a ready export market. Many new industries will spawn from this as new developments are made. Mobile technologies will allow control of what appliances are active from your smart phone. You’ll be able to turn off non essential appliances when you are at work, on holiday etc, whilst still monitoring what is going on and being able to turn the hot water back on while you are on your way home.

For business there is the rent a roof program where people can generate income from their roof, while someone else looks after generating the power and selling it into the grid and to the building occupier. This is extremely scalable. In fact in the UK, many roofs rented by power companies are domestic!

Rented roof

Electricity, disasters and Feed In Tariffs

I’ve been itching to write more about FIT for ages as you will know if you have been reading my blogs. If you didn’t, my last blog was pretty much a summary of my thoughts which started with the Christchurch earthquake.

Prior to that for a few years I have been wondering why a ‘clean green’ country like New Zealand only went so far as to provide subsidies for roof insulation and clean heating. Where is the NZ Green Party on FIT, I asked 2 years ago. I’m not even sure where the party is on much at all at the moment and its election year, when National has launched its new policies on oil and gas and other efficient power sources like coal.

In fairness I do have to acknowledge that Environment Minister Nick Smith did through caution to the wind at the NZ Wind Energy Conference this month, but he also made the point that you need windy places and probably also noted the frequent opposition any time someone wants to set up a wind farm. Personally I like them and if they are silent, I wouldn’t have a problem looking up at them on a hill somewhere.

Dutch windfarm

I have 2 interests here, the first one is renewable energy in the form of solar panels, with the ability to feed power into the grid, but also the ability to make individual households and businesses more resilient in times of crisis.

The common thread anywhere in the world when there is a disaster is that the power goes off. In my recent posts this month I have discussed a whole range of issues where we are so reliant on electricity today that there are a variety of problems after the crisis is over.

I want to again acknowledge the heroism of electricity workers and supporters who risked life and limb to get things up and running as quickly as possible.

Anyway, back to my story. Imagine if we followed on from the subsidies to put insulation into our roofs, by offering subsidies and Feed In Tariffs for installing solar panels on the roofs. This is something we should be doing anyway, but imagine if a large number of people were still able to have at least some electricity when the grid is down. They would still potentially have phone communication, they would have lighting, heating, the ability to wash themselves and much more.

We could find ourselves with a renewable energy source that doesn’t pollute, makes people much more aware of power consumption, involves the community and provides greater resilience while allowing us to get closer to meeting our commitments to reducing carbon waste that we so obligingly adopted with the Kyoto Protocol.

It has been said that I am wont to be verbose. I don’t necessarily want to change that because I am intensely interested in what I write about, however I don’t want to lose you dear reader (borrowed that from Stephen King). So here’s what I’m going to do. I am going to write an new series of shortish blogs on the benefits of FIT for New Zealand in the hope that more people will understand the massive potential benefits to New Zealand and put some pressure on the politicians and energy authorities to do something about it.

I’ve done some reading on the topic and found the paper by Miguel Mendonca of the Birkbeck Institute of Environment, Birkbeck College, University of London particularly helpful. He also wrote the book Feed-in-Tariffs Accelerating the Deployment of Renewable Energy. You can find more information here. He discovered that FIT could work in the UK, that it had many positive benefits above and beyond the basics of a renewable energy source and I plan to discuss some of these from a New Zealand context. I also find it interesting that some people (who perhaps are the ones who wanted Henry Ford to breed faster horses instead of horseless carriages) say there is not enough sunlight in NZ to create an acceptable level of energy. Kiwis who go to UK for their OE’s don’t often come back recounting stories of endless sunny days.

So lets explore what FIT’s and solar power can do for NZ, for our resilience, for our GDP, for our commitment to the environment, for industry, for entrepreneurs and to generally show the world that we are in fact as green as we say we are. There are some amazing benefits to be had along the way.

Please come back and check out what I have learned.

Doesnt look that shabby

The end of Whitcoulls and Borders in New Zealand

If you have a Borders or Whitcoulls voucher, even if you hate the idea of spending double to be allowed to spend your voucher, I recommend you do it quickly, because within a couple of weeks it will be worthless. It was interesting to see that there is no mention of the current situation on the Borders website which talks about eBooks coming soon, although Whitcoulls have been a bit more responsible with a home page announcement.

The demise of these companies isn’t about eBooks, it is largely around debt as pointed out by Liam Dann in this morning’s Business Section of the NZ Herald.  and the business models. I’m not going to discuss the debt because that doesn’t reflect on the industry itself, it reflects on higher level financial decisions and the economy, not on the book trade.

Book stores and music stores are in industries that are steeped in history of “this is how we’ve done it for the last 50 years and why change it if it aint broke”.

As was mentioned in today’s NZ Herald story by Isaac Davison, “In 2010, 9.67 million books were sold, an increase of 1.2 per cent in volume but 0.1 per cent down in value against 2009. This was despite the mark-up on books in New Zealand, which saw paperbacks sold for as much as $20 more than online, even after shipping costs.”

So much for Amazon (of course there were a huge number of Kiwis including myself who purchased from Amazon as well) being the cause of the demise of our local stores.

I also appreciated the comment in the same story from Jo McColl of Unity Books that many people bought hard copy books as a consequence of having purchased eBooks. I’ve done that too. I read eBooks, listen to Audio Books and still have a personal library of around 2,000 print books. The same with music, I listen to lots of music online but have still purchased at least 10 CD’s so far this year.

I might have to go to a separate blog about how Whitcoulls and Borders business model needed to change in order to stay viable and vibrant (ignoring REDGroup‘s debt which doesn’t reflect on the book trade business model itself) because for these guys its too late unless they get a savvy new owner (who will not purchase the chains’ debt) who is ready to adopt a new business model.

REDGroup have called in Administrators. I don’t care who the administrators are. Their role is a short term one and it isn’t about changing the business model or trading back into profit. It is about the creditors.

They will try to negotiate with the book publishers and wholesalers and other suppliers who are desperate to get paid for their product and worried about their future viability in NZ. Inland Revenue want their taxes and will be first in the queue.

They will need to negotiate with the 1,000 staff who will have to have new short term contracts and will be justifiably worried about whether they will get paid at all, let alone have a future with the chain, but at the same time, will be essential should they find a new buyer for the chains.

Based on the outcome of their negotiations a decision will need to be made on whether to go into receivership which is next most likely step. If that happens, enjoy the book sale, because there will be many bargains up for grabs.

The shame of it is that (outside of the decisions that got REDGroup into this financial position) the problem in the trade is that the business model needed to change and like the music industry and other industries, the people running them don’t get it. They should have learned from the music industry, which still doesn’t get it. Other industries who don’t get it include banking, telecommunications and consumer electronics to name a few.

What should they have done and what can other retail businesses do in order to not follow Borders and Whitcoulls into the mire? Subscribe to my blog and I’ll give you a few pointers for free. It isn’t rocket science, but it is a fundamental shift in thinking, whilst also remembering the fundamental simple principles of retail and distributon.

We live in a new world, its exciting and there is a lot of money to be made, but the fatal flaw is thinking that if you do the same thing you have always done, that you will get a different result.

There is an RSS feed to this blog. Come back and read some of my ideas on how companies like Whitcoulls and Borders can thrive and prosper.

Here are a few things I would look at:

• Understanding your business
• Communication with customers
• Communication with staff
• Distribution methods
• Stock turn and inventory management
• Engagement
• In Store Events
• Proximity based marketing
• Shelf Management
• Relationships with community
• Relationships with education
• Location Based Business Analytics
• The Internet
• Gift Registry

I could and probably will go on. The answers are a mixture of the old and the new, neither of which these chains have effectively managed. Borders started in the right direction in the US, but didn’t continue the evolution. International chains like Borders and WH Smith focussed more on the  era of globalization than evolution of the business model. Something that would have made short term heroes who have probably made their money and moved on, but was only ever going to be short term.

On Living Longer

I’ve decided I want to live longer.  I love technology and I love this world of change and the ability to be involved in this technological era. I have things to contribute and I want to be active in ICT, Location Based Services and also as a songwriter. I want to see my children and grandchildren grow up and explore this ever changing world and see what they make of it.

I’m going to have to work longer, that was always expected, but then providing my Maslow and Herzberg needs are met, I enjoy working. I enjoy making a difference, helping people achieve their goals. I enjoy learning, watching what is helping in my spheres of interest, particularly those mentioned above. I enjoy collaborating and networking and am particularly passionate about seeing New Zealand step up to the plate and continuing to innovate and achieve greater success on the world stage.

I reckon a healthy target for me would be 120 given medical advances now and in the future. My greatest risks are probably heart and cancer, with the determining factors being nature and nurture and my general disposition i.e. my attitude and happiness.

One thing that is obvious is that I have to look after my financial well being. If I continue to work, then raising the retirement age isn’t going to be a major for me. If I am enjoying my work, see a future for myself where I can contribute from my experience, passion and knowledge and can continue to grow, I wouldn’t be expecting to retire at 67.

I know I can’t rely on the Government to give me any kind of lifestyle on the retirement pension anyway. Our budget deficit has just been raised to over $15b and despite some significant successes, we still don’t have an infrastructure that really supports innovation. We tend to take credit once people are successful, but most successful innovators tend to be successful in spite of the country’s and their employers contribution rather than because of it.

So my first considerations as I start goal setting and planning will be how I can maintain my lifestyle in the years to come, continue to build an asset base so that when I wind down to a shorter working week I can continue to enjoy a lifestyle and if I should be forced into retirement through poor health (which is not the plan) I can still live comfortably, which no one can in NZ on a pension or benefit. I have a super scheme, I still have a mortgage. I am closing down my rental property LAQC and have sold my rental property. The Government doesn’t want people be able to claim losses from their expenses and without that I can’t afford to own rentals. I’ve invested in public companies before, but unless you are buying and selling daily, this is in my opinion a far greater risk business. Even the biggest companies make mistakes or get caught up in circumstances beyond their control and shareholders unless they are big, have little or no control over their destiny. How many Kiwis lost their life savings in the past by investing in ‘rock solid’ companies?

So I’ll invest in myself. I am studying song writing at Berklee Music on-line, which is costing me a small fortune, but if I can score 1 or 2 hits somewhere along the way, I’ll recoup that investment. I study the industries I’m involved in daily through the media, the occasional conference, networking in person and through social media such as LinkedIn and Twitter and I read a lot.

I have and continue to amass a huge amount of local and international experience in a number of industries, particularly in the application of leading edge technologies to solving business problems. Experience, I have learned takes years and is perhaps something that is least appreciated by younger people who come out of university thinking they know everything and by people who have stuck in one industry or a very small number of companies during their work career.

So to cut a long story short, I need to start planning for my long future. I need to consider a range of aspects, particularly how I want to live those years, what I want to do in them, what I want to contribute, what capital I need, how to maintain my health and fitness. Must be time for some goal setting and dream building.

I’ll leave the last word for now to Anne Brunet (who came via that other little university in Boston (not Berklee Music, but Harvard) and Thomas Rando of Stanford U.

Note the real meat of this video starts around 21 minutes in.

Farmville and the new Virtual Economy

The computer gaming industry is of course massive and simulation games have been popular for a long time. Traditionally though, game makers made their money by selling games and upgrades for games. The SIMS being one of the best examples. I must admit to having enjoyed some of their games in the past, especially the classic Sim City.

Zynga has taken this to a whole new level of success with Farmville, a sim game which has become incredibly popular on Facebook. People pay real money to buy virtual tractors and other items in the game. This has now gone to such an extreme that Tesco is now about to start to sell real money vouchers in their stores.

In About Us on Zynga, they emphasize that their games are free, which is totally true, but there are elements in many of their games where you pay money to buy virtual things, or for example in the poker game, to buy back in to the weekly tournament if you lose your chips.

This adds an amazing dimension to this free game business. According to industry experts, as reported on Rev2.org, Zynga could be worth as much as US$5 Billion, which they predict could double in the next 5 years. Seems the concept of free and internet based games may have some commercial merit:)

Barter, the New Old Economy

I’ve just got back from a break in Rarotonga, which was a wonderful place to visit for peace and rest. It was thought provoking even though thought was not high on my agenda.

I finished a piece of music I had been working on and called it Rarotonga, which you can find on Youtube and my About Songwriting blog. While there I attended a wonderful gospel church service where I had some great singing. This was followed by a bountiful morning tea put on by the open generosity of the locals.

Most of the church service was in Rarotongan Maori, however 2 words that I did understand were Climate Change. In a country where most of the land is very close to sea level this is a real challenge. You need to spend a little time on a South Pacific Island to understand what is at risk.

The one thing you must do when visiting a new country is visit with the people. 3 things stood out:

1. Everyone expressed their gratitude that we visited and explained that their country was entirely dependent on tourism.

2. Every person had at least 2 or 3 jobs and good pay was considered to be about US5 an hour. Other than Sunday’s, most people would be working 12+ hour days.

3. There was a sub economy operating below the cash economy. People trade goods or services. It might be people swapping fish for Taro or playing music in return for food and the ability to promote and sell merchandise such as CD’s.

As you do, when you deliberately disconnect from the grid, you catch up with reading and I got to reading up on Life Inc by Douglas Rushkoff. One of his arguments is that the world’s economies are driven by corporations, banks and other large entities who perhaps care more about themselves and keeping communities reliant on them than helping the people they serve gain any level of independence.

I was blown away by some of the examples of alternative trading systems he came up with, although I don’t know why. Barter as a concept is probably as old as mankind, but a new economy seems to   be reemerging in innovative ways. I’ve known doctors who accepted fish or other produce from patients who couldn’t afford to pay fees in New Zealand. I’ve known plenty of people who share their specialties, a plumber who does work on an electricians home and the electrician is owed a favor by a motor mechanic who then does a job for the plumber for free. The traditional economy still gets revenue from the parts that are used, which includes all the traders and of course tax in all its forms.

From a business point of view, I use Bartercard and they are a great organisation who I recommend. They have Bartercard Maps which uses GeoSmart Maps technology to help you find what you need based on location. However, fundamentally it is still a form of currency and our accounts department and Inland Revenue treat it no different than cash. In some cases, such as accommodation I also sometimes feel that the product you get is a little less quality than you would get if you were paying cash.

One good thing about Bartercard I like is that it is local, at least it encourages companies to use local suppliers. Despite our position, I feel many organisations in NZ from Government Departments through to consumers do not consider supporting their local economy as a major factor in making purchasing decisions.

I don’t want to go into any real detail about the examples in Rushkoff’s book, because that’s what the book is for and you might want to read it. There are some great deals on Amazon. I don’t think you’ll find it in your local bookstore.

Here’s a couple of cool examples.

• CSA or Community Shared Agriculture. The concept is that people not only commit to buying their produce from a particular local farm, but they even commit to doing a small amount of work on it to help support it. This gives some security to the local farmer, but also helps build local community spirit and has people involved and doing something they would not normally do in their daily lives.
• In Japan, the Sawayaka Welfare Foundation came up with a ‘complementary currency’ where young people could earn credits for taking care of elderly people. Those credits, called Fureai Kippu can then be applied to the care of their own elderly relatives who may live in a different part of the country. Because it is by the people and for the people, many say that the standard of support they get is far better than if it was provided by commercial caregivers.

The book also has lots of ideas about local loyalty programs that serve to build greater loyalty to local traders and creates stronger community feeling, which can and should apply to any town or village. The people who work, have restaurants or businesses near your home, are your neighbors. We are  often too quick to go and give profit to multinationals, when we could be supporting our local businesses and then complain when our potential customers don’t use our services.

To a degree this blog was motivated by my trip to Rarotonga and the music I wrote which you can listen to below. But it is also out of concern for our future. New Zealand, like Rarotonga runs the risk of becoming isolated. If a war were to strike overseas and our imports (including oil products, food, clothing and technology) how well prepared are we to continue living to the standard we are accustomed to? People in Rarotonga told us about the island running out of fuel for a few days and the chaos that ensued. How long would we continue our lifestyle without petrol and diesel?