Corporate Governance as a management science (a reevaluation) - Nik Zafri

(The author would like to thank The Organisation for Economic Co-operation and Development (OECD) for the promotion of policies that will improve the economic and social well-being of people around the world including the proper implementation of Corporate Governance)

Despite being popular for more than a decade, many corporations still tend to view Corporate Governance as some "legal constraints" on them. While this is not entirely true, we still find corporate leaders and the executive board fear the auditors with the notion that they might have broken the law or some misdeeds may have occurred.

As a result we still see corporations winding up - some did not even have to. It's shocking to find corporations being liquidated simply because they did not submit the proper papers on time to the authorities.

Citing OECD - Implementing Governance, Chapter 6, Page 162. 2nd para :

"Following the series of scandals in the US and elsewhere involving big corporations, the market has become increasingly demanding regarding improvements in corporate governance practices and INTERNAL CONTROL to increase investor confidence. The awareness that followed the scandals created an environment conducive to better governance. This was seen in Latin America, in countries like Brazil; after the initial period when investors were pushing for basic governance measures, they now are refining their requests by seeking improvement in QUALITY of disclosure, composition of boards and more. Lessons learned from the BENCHMARKING process can be used as the starting point and as a CONTINUOUS LEARNING PROCESS."

When corporate governance been too intertwined with rules and regulations, there is no room for management tools to come in. Corporate Governance is not merely about legalities as "hijacked" by scholars, company secretaries and authorities. 

Corporate governance prevailing practices ironically failed to be seen as a management science - as it should have been. It is about achieving corporate democracy for shareholders and "other interested parties". 

It is not always about the Board of Directors but it also concerns a network of supply chain as well ("Other Interested Parties" - such as employees, consumers, surroundings and even community at large.

Now the laws are there in place...what's next?

The issue now is how to MANAGE it?

Whenever there is a law, there will also be suggestions of the usage of standards and codes of practice. Standards give birth to Manuals, Procedures, Work Instructions and Checklist - all under "controlled conditions" (Refer to ISO 9001:2008)

Let's look back at the 5 core pillars of Corporate Governance:

1) Rights and equitable treatment of shareholders : Corporations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings

Keyword : Communication (internal and external)

Communications can be complicated especially dealing with information being ambiguous or inaccurate. In my experience, communication is mainly the highest contributing factor towards the failure of a management system - especially dealing with unhealthy office politics.

A corporation has a business to run based on a certain core business process as stated in the Manual. It requires inputs to flow from one process and outputs to flow to another process. There is a continuous (communication) flow regarding tangible (materials and product) and intangible (information) inputs and outputs taking place within a corporation.

Thus, the board of directors should come out with methods and resources using the process and deploy these methods through ICT; logistic and HR processes (documents, meetings, directives, e-mails, intranet, visual etc) Get feedbacks from recipients and incorporate them in the policy, objectives and goals. Make your staff feel important that they are the 'guardians' and 'watchdogs'.

2) Interests of other stakeholders : Corporations should recognize that they have legal, contractual, social, and market driven obligations to non-shareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers.

Keyword : Stakeholders

This MUST be stated in corporate’s mission and relays the processes used to get the corporation there. Let the values guide the culture and not vice-versa. Stakeholders should always be put first. They must be made aware of what is going on in a corporation especially any new management system to support the law. They must be well briefed of the long term benefits seeking and achieving the recognitions from the relevant bodies.

3) Role and responsibilities of the board: The board needs sufficient relevant skills and understanding to review and challenge management performance. It also needs adequate size and appropriate levels of independence and commitment.

Keyword : Commitment

A successful implementation of systems and methods can positively affect the corporation’s reputation, growth and profitability. This can only happen if there is a strong commitment from the board. The willingness to invest for a long-term management program that will positive affect the corporation is very important rather than meeting the minimum, mediocre, or sub-standard requirements. And this should be communicated throughout the organization.

4) Integrity and ethical behavior: Integrity should be a fundamental requirement in choosing corporate officers and board members. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making.

Keyword : Professionalism

There is a need for a code of conduct to be developed. A typical code of conduct should not be viewed as an expression of a set of laws but also implying the management methodologies as well.

a) Duties and Responsibilities - A proper Job Description, Organizational Chart and Master Responsibility Matrix - should be in place - to also reflect the Board, Associates, Officers and Corporate Compliance Officers.

b) Honesty, Ethical Conduct, Fair Dealing

c) Procedures dealing with a bunch of issues such as Human Resources, Environmental Health and Safety, Gifts/Gratuities/Entertaintments, Records/Documentation Management, Reporting and Training

5) Disclosure and transparency: Corporations should clarify and make publicly known the roles and responsibilities of board and management to provide stakeholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.

Keyword : Transparency

Once again, a proper Job Description (JD) and documented procedures are required. When making a Job Description, ensure that the duties are arranged according to their utmost priority. A simple percentile management tool would help via a brainstorming session. 

Once the JD is in place, use the cascading principle so that the JD is related to other tools such as (pick one) - Key Performance Indicators, Key Result Areas, Balance Scorecard etc.

Secondly, you need to develop procedures with simple templates such as process flow, responsibility and reference documents/records. (Again, refer to ISO 9001:2008 Standards)

Nik Zafri is an Associate Consultant with TIJ Consultants Group (Malaysia and Singapore)

AMALAN PENGURUSAN DAN PERNIAGAAN ISLAM YANG TERBAIK
(Panduan Keusahawanan Khalaf)

Baru-baru ini ada permintaan dari beberapa penerbit di Malaysia yang telah menghubungi saya setelah melihat manuskrip yang pertama dan telah menyuarakan hasrat meminta saya menulis buku yang telah lama saya pendam pengeluarannya iaitu mengenai amalan pengurusan dan perniagaan Islam terbaik (best Islamic Management and Business Services) pada zaman (khalaf) ini.

Walaupun telah banyak bahan yang dipaparkan mengenai topik yang sama, namun terdapat perbezaan ketara dalam apa yang bakal saya keluarkan nanti.Buku atau panduan ini dijangka akan menjadi petunjuk alternatif yang juga dapat diharmonikan dengan semua standard/piawaian halal dan pengurusan Islam termasuk perbankan Islam di Malaysia.

Berikut adalah petikan dari muka hadapan buku berkenaan yang ditulis bersama oleh Encik Md Sukri :

DARI MEJA PENGARANG

Alhamdulillah, setelah menjalankan kajian lebih dua dekad, akhirnya terhasil juga buku ini sebagai salah satu wadah perjuangan kami untuk mencapai hasrat menjana ekonomi ummah pada zaman khalaf.

Kini umat Melayu Islam sedunia hari ini masih mencari-cari satu kaedah pengurusan dan perniagaan Islamik untuk disesuaikan pada zaman khalaf.

Penggunaan perkataan "Islamik" menggambarkan bahawa isi kandungan ciri-ciri ini telah diterapkan dengan nilai-nilai Islam.

Ini berlaku kerana terlalu banyak input dari pelbagai kajian Islamik yang perlu diproses namun, untuk menganalisa data-data yang banyak ini bagi tujuan mengaturnya kembali bagi memudahkan kefahaman bukanlah semudah yang disangkakan.

Pesanan kami kepada pembaca terutamanya mereka dari kalangan professional dan kakitangan pelbagai industri termasuk perkhidmatan awam; dalam membaca buku ini; tentunya tuan/puan akan terlihat unsur-unsur yang mirip kepada piawaian ISO 9000 dan lain-lain piawaian antarabangsa.

Walaupun demikian, untuk pengetahuan pembaca :

a. Pendekatan buku ini akan mengikut proses perniagaan (di mana poin perniagaan biasanya bermula secara tipikal) dan boleh terus disesuaikan dengan apa juga jenis organisasi.

Sidang pengarang juga telah memberikan contoh-contoh dan istilah-istilah yang mudah difahami dalam setiap ciri-ciri yang dipaparkan,

Manakala piawaian ISO pendekatannya berbentuk elemen yang sekurang-kurangnya perlu diatur kembali mengikut kesesuaian proses/operasi dan tiada contoh-contoh konkrit diberikan.

b. Buku ini bukan bertujuan untuk mencapai sebarang persijilan seperti ISO ianya hanyalah panduan yang mengandungi ciri-ciri Islamik – ianya boleh disesuaikan kepada apa juga bentuk organisasi malah boleh dijadikan prinsip secara individu,

c. Walaubagaimanapun, rujuksilang tetap dilakukan kepada dokumentasi ISO, pelbagai piawaian halal dan pengurusan Islam yang lain untuk memudahkan kefahaman,

d. Buku ini tidak akan menjadi satu tindanan (overlapping) kepada mana-mana piawaian ISO, ianya hanyalah satu pilihan kepada pembaca dan pengamal pengurusan perniagaan Islam.

Tetapi sekiranya ada pihak yang berminat untuk meningkatkan taraf buku ini kepada piawaian, sidang pengarang sentiasa bersedia untuk berbincang secara lanjut.

Adalah diharapkan buku ini akan mendapat keredhaan dan rahmat Allah SWT supaya isi kandungannya dapat dilaksanakan paling hampir dengan kehendak syarak di zaman penuh mencabar ini.

Juga nawaitu kami ialah untuk mengkayakan lagi khazanah keilmuan Islamik dan dapat diharmonikan dengan sistem yang sediada seperti perbankan dan kewangan Islam, sistem perakaunan/pengauditan berorientasikan Islam, pelaburan Islam, piawaian halal, piawaian pengurusan Islam yang lain dan sebagainya.

Setelah buku ini dicetak, sidang pengarang dijangka; InsyaAllah; akan mengadakan siri-siri bengkel dan latihan serta perundingan dengan kerjasama agensi-agensi yang berkaitan. InsyaAllah, buku ini bukanlah buku yang terakhir bagi kami, akan ada lagi siri-siri komplimentari (siri-siri mini) yang akan dikeluarkan dalam tempoh yang terdekat.

Wassalam

SIDANG PENGARANG

NIK ZAFRI BIN ABDUL MAJID

MUHAMMAD SUKRI BIN YAHYA

Antara kandungan buku (ciri-ciri utama) ini ialah :

1.0 PEMASARAN- R & D, Tinjauan Pemasaran, Periklanan dan Promosi berkonsepkan ta'sir, qimah, tanpa unsur ihtikar dan gharar serta mengambilkira :

i) MS 1500:2009 (M), Makanan halal -Pengeluaran, penyediaan, pengendalian dan penyimpanan -Garis panduan umum (Semakan kedua)

ii). MS 2200:Part 1:2008, Islamic Consumer Goods -Part1: Cosmetic and Personal Care -General Guidelines

iii). MS 2400-1:2010, Halalan-Toyyiban Assurance Pipeline -Management system requirements for transportation of goods and/or cargo chain services

iv). MS 2400-2:2010, Halalan-Toyyiban Assurance Pipeline -Management system requirements for warehousing and related activities

v). MS 2400-3:2010, Halalan-Toyyiban Assurance Pipeline -Management system requirements for retailing

vi). Piawaian dan Panduan bersabit dengan GMP dan HACCP di mana berkaitan

vii) MS1900:2005 Quality Management System - Requirement From Islamic Perspectives

Jenis-jenis produk/industri spt. dharuriyah, hajiyah dan tahsiniah.

2.0 PEMBELIAN DAN PENGURUSAN HARTA - yang memaparkan konsep at-thaman, rundingan, sewaan, spesifikasi, jumlah/mutu, sampel, perlantikan pembekal, sistem kawalan kredit bai-muajjal, qa/qc, pengurusan harta alih & tidak alih, rekod, jaminan bank dari bank/kewangan Islamik, atau Bon (sukuk) dsb.

Ianya juga mengambilkira kesesuaian organisasi menggunakan - PO/Kontrak berdasarkan musamma, al-bay (barter trade/kontra), ijarah, jualan, kafalah, qard (kolateral, wang tahanan dsb) - qimi, hibah, wasiyyah/hawalah, iqalah, wadiah, muzaraah, rahn, suftajah (cek kembara), muatah (spt. memakai vending machine), umra/iarah, amanah, thunya, Tawliah, Wadhiah, Isyrak dan Murabahah dan al-inah

3.0 PERANCANGAN - yang memaparkan sumber dan prasarana, tanggungjawab pengurusan, perlantikan wakil syariah atau panel syariah, perancangan/pengurusan sumber manusia, dokumentasi dan rekod.Ianya juga mengambilkira - takhtit, tanzin dan KPI/KRA/MBO

(Dalam ciri-ciri Sumber dan Prasarana ada menyentuh mengenai kepentingan sistem perakaunan mengikut :

'Pernyataan Prinsip Sistem Perakaunan Islam' keluaran Lembaga Piawaian Perakaunan Malaysia (MASB. Selain itu kepentingan terdapatnya 'musolla' dalam sesebuah organisasi yang ingin mengamalkan panduan ini)

4.0 OPERASI - yang memaparkan perkara-perkara am, kemudahkesanan, penstoran, aturan barangan, kawalan peralatan ukuran, penilaian -pemeriksaan/penilaian berkala, pengredan 'patuh syariah', tatacara nilaian, ketidakpatuhan - azimah & rukhsah, penilaian susulan, penyediaan senarai ketidakpatuhan.

Konsep Penilaian adalah berdasarkan Wiqayah :

I. tandaras kejayaan – asas pencapaian matlamat organisasi

II. penjamin kelicinan operasi – tandaras ukuran dan penentuan kelicinan operasi di samping berorientasikan motivasi ke arah kejayaan.

III. Proaktif – mewujudkan dan menjangka langkah-langkah pencegahan masalah berdasarkan pengalaman, kemahiran, syor yang bernas dan lain-lain.

IV. menjalankan penilaian tanpa tujuan untuk mencari kesalahan sebaliknya sama-sama untuk mencari langkah-langkah penambahbaikan dan dijalankan dalam bentuk tidak menjatuhkan maruah seseorang.

5.0 PENAMBAHBAIKAN - yang memaparkan mesyuarat semakan semula

6.0 PELANGGAN

Buku dan panduan ini juga akan memaparkan contoh model pengurusan Islamik dengan contoh cartalir.

NANTIKANLAH KEDATANGANNYA!!

The Star News Nation - Friday June 26, 2009
Negri turns down RM8bil investment

NILAI: The state government has rejected an RM8bil investment from a company based in the Middle East to set up a petrochemical plant in Port Dickson.

Mentri Besar Datuk Seri Mohamad Hasan said the state authorities had decided not to accept the investment as it was a potential environment hazard.

“We want to preserve our mangroves and our pristine beaches. We do not want to be spending a lot more money later to rehabilitate our beaches which are the best south of Kuala Lumpur,” he told reporters at the soft launch of the RM60mil Nilai Springs Resort Hotel here.



Mohamad looking at a section of the lunch buffet after opening the Nilai Springs Resort Hotel while Gan looks on

Mohamad said the state government also rejected the bid as the site chosen by the company was a forest reserve.

He said the state government would not allow such projects along the coastline.

“No structures should be built on the sea as these could also have an adverse impact on the environment,” he said.

On a separate matter, Mohamad said an American company would build a RM400mil manufacturing plant in Bandar Enstek.

“They have signed a land purchase agreement with us and earth works are expected to start soon,” he said, without revealing the name of the company.

It would employ up to 750 workers when in full operation.

Mohamad said an international school would also be built in Nilai next year to cater to the needs of the expatriate community living in the state. “Most of these expatriates, particularly South Koreans and Japanese, are forced to live in Kuala Lumpur because we do not have an international school here.”

Mohamad also congratulated Tan Sri Gan Kong Seng, the chairman of PK Resources and owner of the four-star Nilai Springs Resort Hotel for having the foresight to build the 183-room hotel here.

“This is a strategic location and its proximity to the KLIA, Putrajaya, Cyberjaya and the Formula 1 circuit certainly gives it an advantage over others,” he added.
-----------------------------------------------

My response

Dear YAB Mentri Besar of Negeri Sembilan
Datuk Seri Mohamad Hasan

May I dedicate my greatest respect and congratulate you for such a courageous act in the name of environmental management and preservation. It must be hard for you to make such an unpopular decision but what is right is still right.

I'm not from Negri Sembilan but Port Dickson is like a getaway home to my family. You are very right to say that the NS Government will spend so much money on rehabilitation if the project allowed to be carried out.

As a result of unsustainable development, the marine life in Port Dickson is deteriorating badly - coral reefs, fish, etc. Thus, the fast pace of development without guarantee of safeguarding the environment should be put to halt immediately. Efforts to restore the marine life must be carried out now!

In those good old days, almost everywhere in Port Dickson used to look like Tanjung Tuan. Tanjung Tuan has now become a role model where no unsustainable development is allowed - Tanjung Tuan is a cape of natural coastal forest with mangroves and good for bird watching.

The petrochemical industry pumps out petroleum and chemicals through miles of pipeline. Mainly offshore - commonly, it cuts through the coastal wetlands (hence cutting into the swamp) bringing salt water inland 'murdering' the trees which stand as natural 'erode proof' - Wetlands will soon loosing it's buffer of protection and eventually more land will vanish.

Furthermore, do not underestimate the power of global warming. It can push up sea levels hence exposing the coastline to be more fragile to natural disasters (even how small it would be)

YAB Datuk Seri

I wish every MB would take you as an example. Development is fine with me but by compromising the environment is not acceptable.

We still have people cutting trees indiscriminately and in the end, these same people started to complain about how hot it is to stay in their place where they are living.

This is really happening to the place where I'm staying - Taman Seri Gombak (which ironically many people tend to forget the name of this place - I don't know why) and I feel very dissapointed with the current pace of unsustainable development.

People who do not know how to preserve the environment today will create a dark future for their own generation tommorrow

Thanks and regards - YAB - keep up the good work

Wassalam.

NIK ZAFRI

The Star Global Malaysians Forum Posted: 06 August 2006 at 7:27pm

Nik Zafri's Comments

Here's an article from Greenpeace :

Nuclear power: No solution to climate change

“Nuclear power is expensive, slow and dangerous and it won't stop climate change. If the answer is nuclear power, it must have been a pretty stupid question.” Ian Lowe President, Australia Conservation Foundation.

The new battlecry of the nuclear industry is that nuclear energy is the answer to global climate change. Nuclear energy is toxic and dangerous. Far from being rehabilitated, the nuclear option is a convenient distraction from the problem of climate change and stalls real action to combat it.

Nuclear power lobbyists are correct that climate change demands an urgent and quick response. But replacing polluting coal and other fossil fuel-based power with another environmental disaster -- in the form of nuclear power -- is NOT the answer we need. Our best long-term solution for an emission free and greenhouse-friendly future are the truly clean and green renewable energy sources – particularly wind and solar - combined with technologies that vastly improve energy efficiency.

In Asia...

Asia is projected to have the largest growth in installed nuclear generating capacity from 2002-2025, accounting for 96% of the total projected increase.

Cost: Nuclear power is more expensive. Not only is nuclear power more expensive than fossil fuel generation and clean, renewable wind power, it also leaves a legacy of unsafe yet highly expensive technologies. Costs associated with safety and security, insurance and liability in case of accident or attack, waste management, construction and decommissioning are rising substantially for nuclear power, while the cost of wind and solar power is falling. Nuclear power plants have only presented a veneer of economic viability in the past due to heavy government subsidies. As energy markets have liberalized around the world, investors have turned their backs on nuclear energy. The number of reactors in western Europe and the United States peaked 15 years ago and has been declining since. By contrast, the amount of wind power and solar energy is rising at rates of 20 to 30 per cent a year.

The hazards associated with nuclear power include the risk of potentially catastrophic accidents like the 1986 Chernobyl nuclear reactor disaster, routine releases of radioactive gases and liquids from nuclear plants, the problem of nuclear waste and the risks of terrorism and sabotage. The International Energy Outlook 2005's projection that Asia will have the largest growth in nuclear generation in the next two decades exposes the region, which consists mostly of developing countries to these hazards, more than any other region. Asia will soon be dumping ground of nuclear technology if we do not reject this trend. and work in favor of renewable energy and improved efficiency.

Waste: Nuclear waste disposal is still an unsolved problem. The most dangerous form of pollution ever created, nuclear waste remains radioactive for hundreds of thousands of years. Uranium mines typically generate volumes of long-lived, low level waste which is kept on site. Reactors release radioactive emissions to air and water. Reprocessing plants generate a high-level radioactive waste stream and emissions to air and water. All these pose risks to the health of the public. Monitoring and maintaining waste deposits over a period spanning 20 times the length of known civilization is an unacceptable burden we are placing on all future generations – with no guarantees of long term safety.

Nuclear proliferation: Nuclear technology, such as uranium enrichment is also used in nuclear weapons production, and therefore a proliferation risk. There are now more than 40 countries with the capacity to build nuclear weapons, and international efforts to stop the proliferation of nuclear weapons technology are failing. Nuclear technology will always carry the risk that it will be used to construct weapons of mass destruction.

Greenhouse polluters: Claims that nuclear power is “emissions free” are false. Substantial greenhouse gas emissions are generated across the nuclear fuel cycle. Fossil-fuel generated electricity is more greenhouse intensive than nuclear power, but this comparison only holds true if high-grade uranium ores are available. Even with such high-grade ores, there is a massive increase in greenhouse pollution from mining, processing and reactor construction before any electricity is generated. The known resources of high-grade uranium ores only amount to a few decades' use at the present rate. Most of the earth’s uranium is found in very poor grade ores, and recovery of uranium from these ores is likely to be considerably more greenhouse intensive. Nuclear power emits more greenhouse gases per unit energy than most renewable energy sources, and that comparative deficit will widen as uranium ore grades decline.

Safe, clean alternatives

To avoid dangerous further changes to our climate, we need to act now. Asia in particular should make a commitment to the sensible alternatives that produce sustainable cost-effective reductions in greenhouse pollution: wind power, solar water-heating, energy efficiency, gas and energy from organic matter. Renewable energy and energy efficiency can deliver the power we need – without the environmental and social problems.

Renewable energy already supplies 19% of world electricity, compared to nuclear’s 16%. The share of renewables is increasing, while nuclear’s share is decreasing. Renewable energy sources such as wind power and solar power are growing by 20-30% every year. In 2003, the cumulative installed capacity of solar photovoltaic (PV) systems around the world passed the landmark figure of 2,400 Megawatts of solar photovoltaic power. Global shipments of PV cells and modules have been growing an average annual rate of more than 35% for of the past few years, providing employment for 10,000 people and generating business worth more than 3 billion euros annually. Wind power, on the other hand, is the world’s fastest growing energy source with installed capacity growing at an average annual rate over the last 5 years of 15.8%

Renewable energies have truly limitless sources, can be more easily deployed in remote developing regions, present absolutely no risk to global security and are environmentally-friendly.

Because there is only a finite amount of investment available for new energy, any investment in nuclear power is effectively money denied to renewables and energy efficiency. Nuclear power, with fifty years of failure as its track record and still no solutions to its fundamental problems, remains a shockingly poor investment choice. The wise decision then, is to say no to nuclear, yes to renewables and energy efficiency.

Nik : So, with this, I say 'bye-bye' to nukes!
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Comments by ahvincent

Nuclear power plants do not produce the same amount of green house gas pollutants but they produce another kind of pollutant, Nuclear Waste.!!! And nuclear waste will kill you a lot quicker and have a half life of hundreds of years with a potential to kill even more is it gets out of control !!!

Some of our Oz politicians have got s*&t for brains !!! They have completely missed the point, surely it would make more sense in trying to develop wind powered turbine farms or look at harness more hydro energy.

All along the coast around the Great Australian Blight the wind is very strong 24/7/365. It lends itself to wind farms and with modern light weight turbines which are very efficient I think they should investigate that option.
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Response by gleearch

Ahvincent,

I agree. Nuclear energy isn't a cure all. Nothing sustainable about it at all. You are right. A pollutant or waste is still waste. In this case highly dangerous. There's still not good way to get rid of nuclear waste. I don't think dumping them in concrete holding facilities is really doing any good. Or storing them under sea.

There's plenty of sun and wind in Australia as you pointed out. Some of the new skyscrapers going up in new York have built in wind turbines to generate electricity.

They keep on developing new wind turbines that can reduce accidents with birds. No pollution. Plenty of cheap renewable energy. Same with solar panels.
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Posted: 09 August 2006 at 8:15am

Response by ahvincent

I will recount a first hand story about an early experimental plant using solar energy generated electricity system. I used to work with a major USA based power generation company many years ago. They installed one of their early prototypes on an isolated village in Papua New Guinea. These villages did not have electricity and no road access. All diesel fuel will have to be flown in thus making it prohibitively expensive. So solar power was an ideal solution to bring the marvels of modern science to these primitive jungle tribes.

We intalled a solar powered generation plant enough to provide the bare essentials to the village. This system had a diesel motor as a backup to charge the batteries in case of a cloudy day or an emergency.

Everything seem to be working fine when our technicians were on site but once they left we keep getting calls that our system was not functioning properly. They have to use the diesel generator all the time and the authorities had to keep flying in fuel at a great expense.

So we send our technicians in and they found out that the natives who have not seen an electric light in their lives were keeping all the lights on all night and sitting around the lights watching it. Little wonder that the supply ran flat before morning.

Anyway the project was deemed a failure for a variety of reasons and we did not sell more than a handful of our remote solar electricity plants. That was many many years ago, I am sure the price of solar cells have got more efficient and less costly now and maybe this type of projects may become more cost efficient now. I don't know.

An other example (of what seems to be a good idea at the time) of another experimental project gone wrong is the big black (W) towers in Pittsburg. If you go to Pittsburg you will see a great big (I cannot tell you the name) electric sign next to where the Ohio & Mo...(I cannot spell the name) rivers. I don't know if the sign is still there now.

This sign is lit by thousands of light bulbs. The idea was to collect the heat given off by the bulbs in the sign and the building to drive the air-conditioning in the building. Someone's brilliant idea at the time. The end result - all the lights in the sign and the building had to be left on 24/7 otherwise no air conditioning.

Disastrous experiment costing millions. At the end they just had to connect the air condition back to the usually supply source.

On one particular conference I attended someone had another brilliant idea for storing electricity. We all known batteries are very ineffcient at storing large quantities of electricity, so his idea was to use off peak power to pump water to a pool at a higher level and during peak demand periods let the water drain back down driving turbines in the process. Electricity is thus stored in the form of kinetic energy.

Other bright ideas include using off peak power to wind up a series of gaint coil springs. This did not arouse the same level of interest as the first idea,
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Posted: 09 August 2006 at 11:27am

Response by gleearch

Ahvincent,

Interesting stories. That's what happens when not a lot of thought is given to the idea. Using light bulbs to power air conditioning? Duh! as homer simpson would say. Using electricity to power up the lights and then using the heat from it to power the air conditioning.

I mean, what were they thinking.

Ok I'll offer these instead.

Ice skating rinks generate heat. That is the cooling machinery used to create the ice on the rinks generate heat. (I'm simplifying things overly much) It is common practise now to use that waste heat for other uses. Melting snow around buildings so people don't slip and fall etc.

It's about using waste heat and having a secondary system in place. Not creating a whole system to generate waste heat just to power something else.
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Posted: 30 August 2006 at 10:11pm

Response by stingray2000

Nuclear Power Won't Fix It

Nuclear power is not the answer to tackling climate change or security of supply, according to the Sustainable Development Commission in Scotland.

The SDC nuclear report draws together the most comprehensive evidence base available to find that there is no justification for bringing forward a new nuclear power programme at present – supporting current Scottish policy.

Scottish Commissioner, Hugh Raven, says:

“Our report proves how right Scotland is to fight for its ‘no nuclear’ policy. We’ve thoroughly investigated nuclear power over the last year, but have found that any potential benefits are outweighed by substantial disadvantages. With our amazing renewable resources – combined with some serious political willpower – Scotland could become a true world leader in clean, sustainable energy.”

“The SDC urges the Scottish Executive to stick to its position of not supporting the further development of nuclear power while waste management issues remain unresolved. Nuclear is not the answer for climate change or security of supply.”

In response to the UK Government’s Energy Review, the SDC report gives a balanced examination of the pros and cons of nuclear power, based on eight new research papers.

Its research recognizes that nuclear is a low carbon technology, with an impressive safety record in the UK. Nuclear could generate large quantities of electricity, contribute to stabilising CO2 emissions and add to the diversity of the UK’s energy supply.

However, the research establishes that even if the UK’s existing nuclear capacity were doubled, it would only give an 8% cut on emissions by 2035 .This must be set against the risks.

The report identifies five major disadvantages to nuclear power:

1. Long-term waste – no long term solutions are yet available, let alone acceptable to the general public; it is impossible to guarantee safety over the long-term disposal of waste.

2. Cost – the economics of nuclear new-build are highly uncertain. There is little, if any, justification for public subsidy, but if estimated costs escalate, there’s a clear risk that the taxpayer will be have to pick up the tab.

3. Inflexibility – nuclear would lock the UK into a centralised distribution system for the next 50 years, at exactly the time when opportunities for microgeneration and local distribution network are stronger than ever.

4. Undermining energy efficiency – a new nuclear programme would give out the wrong signal to consumers and businesses, implying that a major technological fix is all that’s required, weakening the urgent action needed on energy efficiency.

5. International security – if the UK brings forward a new nuclear power programme, we cannot deny other countries the same technology*. With lower safety standards, they run higher risks of accidents, radiation exposure, proliferation and terrorist attacks.

On balance, the SDC finds that these problems outweigh the advantages of nuclear. However, the SDC does not rule out further research into new nuclear technologies and pursuing answers to the waste problem, as future technological developments may justify a re-examination of the issue.



Download the reports:

Full SDC position paper
» The role of nuclear power in a low carbon economy
A commentary by Jonathon Porritt
» Is nuclear the answer?

Or order your free hard copies

SDC Chair, Jonathon Porritt, says:
“It’s vital that we get to grips with the complexity of nuclear power. Far too often, the debate is highly polarised, with NGOs claiming to see no advantages to nuclear at all, and the pro-nuclear lobby claiming that it’s the only solution available to us.

“Instead of hurtling along to a pre-judged conclusion (which many fear the UK Government is intent on doing), we must look to the evidence. There’s little point in denying that nuclear power has benefits, but in our view, these are outweighed by serious disadvantages. The UK Government is going to have to stop looking for an easy fix to our climate change and energy crises – there simply isn’t one.”

Concluding with advice on a future energy strategy, the SDC report establishes that it is indeed possible to meet the UK’s energy needs without nuclear power. With a combination of a low-carbon innovation strategy and an aggressive expansion of energy efficiency and renewables, the UK would become a leader in low-carbon technologies. This would enhance economic competitiveness whilst meeting the UK’s future energy needs.

ENDS

[Notes to Eds:

- The SDC nuclear review, research papers and audio launch interview with Jonathon Porritt are available to download at www.sd-commission.org.uk.

- The SDC has spent a year gathering evidence and agreeing its position on nuclear power.

- The process for developing the SDC position on nuclear power has been rigorous and transparent. During the process, the SDC identified three divergent positions on nuclear power: position 1 - NO, position 2 – NOT NOW, position 3 - MAYBE.

SDC Commissioners voted as follows: eight Commissioners favoured position 1, five favoured position 2, and two favoured position 3.
As part of the current Energy Review, we expect the Government will go through a comparable decision-making process, and we advise them to be similarly transparent.

- The SDC nuclear review is based on eight new research papers
(see attached evidence base summary for key facts):
1. An introduction to nuclear power – science, technology and UK policy context,
by the Sustainable Development Commission
2. Reducing CO2 emissions: nuclear and the alternatives,
by the Sustainable Development Commission
3. Landscape, environment and community impacts of nuclear power,
by the Sustainable Development Commission
4. The economics of nuclear power
by the Science & Technology Policy Research (SPRU, University of Sussex) and NERA Economic Consulting
5. Waste and decommissioning
by the Sustainable Development Commission with contributions from Nirex and AMEC NNC
6. Safety and security
by the Sustainable Development Commission with contributions from Large & Associates and AMEC NNC
7. Public perceptions and community issues
by Professor Robin Grove-White, Dr Matthew Kearnes, Dr Phil Macnaghten and Professor Brian Wynne
8. Uranium resource availability
by Future Energy Solutions, an operating division of AEA Technology plc

- The Sustainable Development Commission is the government advisory body on all matters relating to sustainable development, reporting to the First Minister in Scotland and Prime Minister at UK level . Through advocacy, advice and appraisal, we help put sustainable development at the core of Executive policy.

SOURCE: Sustainable Development Commission UK