Viewpoints: could Labor’s tax changes make the system fairer or hurt investors?


Danielle Wood, Grattan Institute; Brendan Coates, Grattan Institute; Gordon Mackenzie, UNSW, and John Daley, Grattan Institute

The Australian Labor party will scrap a system that refunds more than A$5 billion a year to low or zero tax paying investors, should they win government.

Franking credits” are designed to stop tax being paid twice on Australian corporate profits, allowing shareholders a credit for the tax paid by the company. But when shareholders don’t pay taxes at all they can claim a cash refund for unused credits from the tax office.

Scrapping cash refunds on unused franking credits could make the tax system fairer according to Danielle Wood, Brendan Coates and John Daley from the Grattan Institute.

But according to Gordon Mackenzie from UNSW, these cash refunds incentivise people to invest in Australian companies, and ending them could see super and self-managed super funds, in particular, pulling their investment from local companies.

Labor proposes to abolish cash refunds of unused franking credits for individuals and superannuation funds. Not for profits and universities, which do not pay income tax, will continue to receive cash refunds for franking credits.


A piecemeal move towards a fairer tax system

Danielle Wood, Brendan Coates and John Daley, Grattan Institute

Labor’s proposal is not comprehensive tax reform. But in the absence of that holy grail, it is a piecemeal move towards a more equitable tax system. The change will primarily affect wealthy retirees.

The wealthiest 20% of retirees own 86% of shares held by older Australians outside of super. And among self-managed superannuation funds (primarily held by wealthier retirees), half of the refunds are currently going to people with balances over A$2.4 million.

Abolishing cash refunds for individuals and superannuation funds will raise about A$5 billion a year in extra revenue. About 33% will be paid by individuals (mostly in high wealth households), 60% will be paid by self-managed superannuation funds (typically held by wealthier retirees), and the remaining 7% will be paid by Australian Prudential Regulation Authority regulated superannuation funds.


ABS Survey of Income and Housing 2015-16, Author provided

Cash refunds on franking credits were introduced in 2001 for shareholders who had more franking credits than the tax they owed. The theory was that people with no or low income should have the same incentives to invest in Australian companies as other investors.

At the time, the decision cost the budget little – around A$550 million a year – because very few people with low income also owned shares.

But new superannuation rules in 2006 relieved retirees from paying any tax on their superannuation withdrawals. Retirees also pay no tax on their super fund earnings. As more people with significant super balances retire, an increasing number qualify for cash refunds on unused franking credits.

And a series of changes to the Seniors and Pensioners Tax Offset increased the proportion of over-65s paying no tax on earnings outside of super.

The cash refund system now costs the federal budget more than A$5 billion a year. But abolishing cash refunds on dividends won’t be costless.

The franking credit regime was set up for a variety of good reasons. It aimed to bias Australians towards investing in Australia. In practice this appears to have led to Australian companies being funded more through equity and less through debt, improving financial stability.

In theory it would also lead to more physical investment in Australia, although there is less evidence that this has happened.

In practice, franking credits also encourage Australian companies to pay dividends rather than inefficiently hoard cash or invest in low-return projects.




Read more:
How the government can pay for its proposed company tax cuts


So abolishing cash refunds, but keeping franking credits for those who do pay income tax, is probably not the ideal policy. It abandons the principle that all company profits should be taxed at an investor’s marginal rate of income tax. And it reduces the incentive for retirees to invest in companies from Australia rather than overseas.

On the other hand, the decisions not to tax superannuation withdrawals and to increase the effective tax-free threshold for older Australians have led to wealthy retirees contributing very little to government revenues relative to younger households.

Even though the wealth of older generations has jumped in line with asset prices, the share of senior Australians who pay income tax has nearly halved – from 27% to 16% – in the past two decades.

In an ideal world the federal government would reintroduce a number of higher income and wealthy older Australians to the tax system by taxing superannuation earnings and abolishing age-based tax rates. But in the absence of the political will to make these changes, abolishing cash refunds provides a big boost to the budget bottom line from more or less the same group.


The changes could bring distortions to investors

Gordon Mackenzie, Senior Lecturer, University of New South Wales

Chasing franking credits is one of the few tax issues that super fund investment managers take into account when investing, and is a significant consideration for self-managed super funds, according to my research with Professor Margaret McKerchar.

As the previous authors mention, franking credits are intended as an incentive for certain investors to invest in Australian companies. Under the rules, super funds and self-managed super funds don’t pay tax when they are paying a retirement pension, if the account balance is below a certain level.

Since they pay no tax, it is worthwhile for these funds to invest in Australian companies that will pay franking credits. Doing so allows them to claim credits from the tax office.

But this also means that if cash refunds on franking credits are done away with, it is an implicit 30% tax increase on super and self-managed funds that invest in Australian companies. This creates an incentive for them to put their money elsewhere.

If these funds invest in something like a government bond then they will pay no tax on the profits. If they invest in an Australian company, the company will pay the corporate tax and there will be no way for super funds to claim the tax back.




Read more:
Tax reform aside, there’s no real case to kill off dividend imputation


Many self-managed super funds have accounts for paying a pension to the member and another account for accumulating funds, but not paying out anything. Self-managed super funds will likely replace Australian shares in their pension accounts with assets such as bonds or managed funds.

This is important, as data shows that Australian shares are one of the largest asset classes held by self-managed super funds, ranging between 21% and 30.8% of the entire portfolio, depending on the size of the fund.

The response of other types of superannuation funds will probably be more muted. While they do value imputation credits, they also care about diversifying their portfolios – there will still be benefits to holding some Australian shares.

The ConversationOverall, then, imputation credits are important to superannuation funds, both big and small. The refund not only makes certain types of investment attractive, but also drives how much is invested in that type of investment.

Danielle Wood, Program Director, Budget Policy and Institutions, Grattan Institute; Brendan Coates, Fellow, Grattan Institute; Gordon Mackenzie, Senior Lecturer, UNSW, and John Daley, Chief Executive Officer, Grattan Institute

This article was originally published on The Conversation. Read the original article.

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McCormack puts Chester back on frontbench in cautious changes


Michelle Grattan, University of Canberra

Victorian Nationals MP Darren Chester, controversially dropped from cabinet by Barnaby Joyce, has been restored to the ministry in a minimalist reshuffle by new party leader and Deputy Prime Minister Michael McCormack.

Chester takes McCormack’s old posts of veterans’ affairs and defence personnel. He also replaces McCormack as deputy leader of the house. He will be in the outer ministry rather than in cabinet, as he was previously, but is believed to be happy with the outcome.

The dropping of Chester in the December reshuffle – on the stated grounds that the election of Bridget McKenzie as deputy meant Victoria would be over-represented in the Nationals’ cabinet line-up – sparked much criticism. It added to the pressure on Joyce when the news of his affair with a former staffer broke.

In other changes, Queenslander Keith Pitt, also dropped by Joyce, becomes assistant minister to the deputy prime minister.

Mark Coulton, from New South Wales, is elevated to assistant minister for trade, tourism and investment.

Two assistant minister have been relegated to the backbench – Damian Drum from Victoria and Luke Hartsuyker from NSW.

McCormack has rewarded supporters but has been cautious in making changes. Rumours were flying among some in the jittery Nationals of much wider changes though these never seemed likely, given the new leader needs to settle the party down. McCormack said in a statement that “ultimately my focus was on maintaining stability so the government can get on with the job of delivering for the nation”.

The ConversationOn Monday, McCormack was sworn into the infrastructure and transport portfolio that Joyce took from Chester in December.

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

Australian Politics: 21 July 2013


The new hardline regime concerning asylum seekers has been implemented with the first boat arriving since the announcement of the changes by Kevin Rudd and Labor. The Coalition is supporting some of the changes, which for Labor should be an alarm bell, meaning it has gone too far to the right.

For more visit:
http://www.theaustralian.com.au/national-affairs/first-asylum-boat-arrives-under-rudds-hardline-png-solution/story-fn59niix-1226682406568



The link below is to an article that looks at some of the divergent interest parties contesting this year’s federal election.

For more visit:
http://www.easternriverinachronicle.com.au/story/1650949/something-for-everyone-how-niche-parties-are-taking-over-australias-political-landscape/

Australia: Temperatures Mean Map Changes


The link below is to an article that reports on the Bureau of Meteorology in Australia having to add additional colours to the temperature map graphic of Australia for the extreme temperatures currently being experienced in Australia.

For more visit:
http://www.smh.com.au/environment/weather/temperatures-off-the-charts-as-australia-turns-deep-purple-20130108-2ce33.html

Turkey Arrests 20 Allegedly Linked to Malatya Murders


Suspects in Ergenekon network long sought in homicide case to be questioned.

ISTANBUL, March 18 (CDN) — In simultaneous operations in nine different provinces of Turkey, authorities yesterday arrested 20 people suspected of playing a role in the murder of three Christians in Malatya in 2007, according to local news reports.

Zekeriya Oz, chief prosecutor overseeing the investigation into a clandestine network known as Ergenekon allegedly aimed at destabilizing the government, ordered the arrests based on information that linked the suspects to both the network and to the Malatya murders, Turkish press reported after Istanbul Chief of Police Chief Huseyin Capkin announced the sweep at a press conference yesterday.

“This was an operation related to the Malatya Zirve publishing house murders,” Capkin said, according to online news agency Malatya Guncel. “They were just arrested. This is connected to the Zirve publishing house. That’s the framework.”

Those apprehended include Ruhi Abat, a Muslim theology professor from Malatya Inonu University, Mehmet Ulger, a retired commander of the Malatya Gendarmerie in service at the time of the murders, and other members of the military. Oz will question the suspects in Istanbul, according to reports.

Police also raided the guesthouse of the Izmir Gendarmerie, seizing computers and documents. News sources listed Malatya, Siirt, Mugla, Mersin and Izmir as some of the cities in which authorities conducted raids and arrests.

A plaintiff attorney in the Malatya murder case, Orhan Kemal Cengiz, told Compass that the names on the list of those arrested were suspects he and his colleagues have been trying to convince the Malatya prosecutor to pursue since the court received a tip in May 2008.

“They are all the usual suspects,” Cengiz said. “All their names were mentioned in the first informant letter. Unfortunately, despite all our efforts, we couldn’t find anyone to investigate these allegations.”

The letter was the first of many informant letters the Malatya court has received since it started hearing the case on Nov. 22, 2007. Penned by someone who identified himself by the pseudonym “Ali Arslan” but unsigned, the letter claimed that Ulger incited Emre Gunaydin, one of the suspects, to carry out the murders and that he communicated with Gunaydin through Abat and two gendarmerie officers, reported Turkish English daily Today’s Zaman.

Cengiz said that, though it was the duty of the Malatya prosecutor to pursue leads in the informant letter, the prosecutor deferred the investigation to the military court, which in turn refused to investigate, claiming that the name on the letter was fake and the letter was not signed.

“It was like a joke,” Cengiz said.

On April 18, 2007, two Turkish Christians, Necati Aydin and Ugur Yuksel, and German Christian Tilmann Geske, were bound, tortured and then murdered at the office of Zirve Publishing Co., a Christian publishing house in Malatya. The suspects, Salih Guler, Cuma Ozdemir, Hamit Ceker, and Abuzer Yildirim, were arrested while trying to escape the scene of the crime, as was alleged ringleader Gunaydin.

From the beginning of the court hearings, plaintiff lawyers have brought evidence to the court showing the five young suspects were connected to a wider plot to kill the three Christians as well as other key Christian leaders across Turkey. Known as the Cage Plan, the plot is believed to be part of the alleged Ergenekon “deep state” operation to destabilize the government.

The Cage Plan centers on a compact disc found in 2009 in the house of a retired naval officer. The plan, to be carried out by 41 naval officers, termed as “operations” the Malatya killings, the 2006 assassination of Catholic priest Andrea Santoro and the 2007 slaying of Hrant Dink, Armenian editor-in-chief of the weekly Agos.

Cengiz told Compass that new evidence in the Ergenekon case might have convinced Oz to pursue those detained yesterday, and he called the move “a very big step” in shedding light on the Malatya case. He and colleague Erdal Dogan said their efforts – especially a request they sent to Oz on Jan. 18, 2010 asking him to investigate the allegations that Ergenekon members were behind the Malatya murders – surely helped to move the process along.

“I believe our efforts had a very big influence on this,” Cengiz said. “We submitted a petition and requested this from Oz last year. He is acting with the Malatya prosecutor on this.”

At the request of the Istanbul Chief Prosecutor’s Office, the Istanbul Police Department prepared a report last year revealing links between the Malatya murders and Ergenekon, according to Today’s Zaman. According to the report, Sevgi Erenerol, spokesperson for a bogus ultranationalist association known as the Turkish Orthodox Church, described foreign missionary activity as “spying” and “provoking.”

“A piece of evidence in the report was a conference on missionary activity given by Sevgi Erenerol … at the General Staff’s Strategic Research and Study Center,” reported Today’s Zaman.

Erenerol was arrested in connection with Ergenekon in 2008. Her suspected links with those thought to have masterminded the Zirve murders may have influenced yesterday’s arrests, Today’s Zaman reported.

She is also believed to be one of the key people behind false accusations against two members of Turkey’s Protestant Church, Hakan Tastan and Turan Topal, who were arrested in October 2006 for insulting Turkishness and Islam because they openly shared their faith.

After four years of legal battle, a judge finally acquitted the two Christians of insulting Turkey and its people by spreading Christianity, but not without slapping them with a hefty fine for a spurious charge. The two men are in the process of appealing the fine.

The Turkish Constitution grants all citizens the right to speak about their faith.

Plaintiff attorneys in the Malatya murders case said they believe yesterday’s arrests bring them closer to their requests that the Malatya murders case file be joined to that of the Ergenekon trial.

“From now on, we can predict it is very possible that our case will be sent to Istanbul soon and that these two cases will be merged,” said Cengiz.

The next Malatya hearing is scheduled for April 29.

Report from Compass Direct News
http://www.compassdirect.org

Christians in Turkey Face Harassment; Murder Trial Stalls


Departure of presiding judge in Malatya case could further delay justice, attorneys fear.

ISTANBUL, March 15 (CDN) — Though the horrific scale of the 2007 Malatya murders has not been repeated in Turkey’s Protestant church, a recent report shows harassment continues to be a daily problem for the country’s Christians and churches.

Discrimination, slander and attacks against churches were among the examples of ongoing harassment that the Turkish Association of Protestant Churches (TEK) recorded in 2010.

In an eight-page report published earlier this year, TEK’s Committee for Religious Freedom and Legal Affairs outlined problems Protestants face. Turkish laws and “negative attitudes of civil servants” continue to make it nearly impossible for non-Muslims to establish places of worship, the committee reported. Three churches faced legal problems last year regarding their buildings, according to the report.

Missionary activities are still considered a national threat despite the existence of Turkish laws guaranteeing citizens the freedom to propagate and teach their faith, and children are victims of discrimination at school, according to the report. Though the Religious Education General Directorate for Higher Education and Training Committee allows non-Muslim students to stay out of religious classes, parents have reported cases in which they were not able to take their children out of such
courses.

“After four years [since the Malatya murders], Turkey’s religious freedoms have not improved as desired,” said attorney Erdal Dogan. “Christians, Alevis [a Shiite sub-community] and people of other beliefs are still not protected by law. And people of other faiths apart from Muslims have no legal status. Since racism is still prevalent in the context of freedom, discrimination in its turn has become a fact of life.”   

About a third of Turks are estimated to be Alevis.

Turkey rose to 30th place in Open Doors’ 2011 World Watch List of nations in which persecution against Christians takes place, up from 35th place the previous year. The Christian support organization cited deteriorating conditions as the secular country applied some laws in discriminatory ways against Christians.

TEK estimates that there are up to 3,500 Protestant Christians in Turkey.

 

Malatya Trial Stalled

In the trial of the five primary suspects in the murder of three Christians in Malatya, plaintiff attorneys fear the departure of one of the three judges to a Supreme Court of Appeals post in Ankara could further stall the nearly four-year-old case.

The loss of Judge Eray Gurtekin, who had presided over the case since it began on Nov. 22, 2007, could threaten to set back the progress of the court that has been examining links between the killers and alleged masterminds, according to Dogan, a plaintiff attorney in the case. Gurtekin was appointed as a judge in the Supreme Court of Appeals in Turkey’s capital Ankara last month.

“In a three-member panel [of judges], the change of one is not really helpful,” said Dogan, “because just as the previous presiding judge had started to understand and pay close attention to the case file, a new judge came in his place. I hope he will catch on quickly.”

The new judge joined the Malatya hearings panel this month, and Dogan said there could be more changes in the panel.

The 12th Istanbul High Criminal Court is expected to hear the testimony of another witness on March 29, and the court is trying to locate two more witnesses in order to shed light on the Malatya murders.

On April 18, 2007, two Turkish Christians, Necati Aydin and Ugur Yuksel, and German Christian Tilmann Geske, were bound, tortured and then murdered at the office of Zirve Publishing Co., a Christian publishing house in Malatya. The suspects, Salih Guler, Cuma Ozdemir, Hamit Ceker, and Abuzer Yildirim, were arrested while trying to escape the scene of the crime, as was alleged ringleader Emre Gunaydin.

From the beginning of the court hearings, prosecuting lawyers have brought evidence to the court showing the five young suspects were connected to a wider plot to kill the three Christians as well as other key Christian leaders across Turkey. Known as the Cage Plan, the plot is believed to be part of the alleged Ergenekon “deep state” operation to destabilize the government.

The Cage Plan centers on a compact disc found in 2009 in the house of a retired naval officer. The plan, to be carried out by 41 naval officers, termed as “operations” the Malatya killings, the 2006 assassination of Catholic priest Andrea Santoro and the 2007 slaying of Hrant Dink, Armenian editor-in-chief of the weekly Agos.

Questioned by the judges, Varol Bulent Aral – suspected of being one of the people who planned the murders and linked the killers to the masterminds – said he wanted the court to find out who was supporting the Zirve Publishing Co. He added a cryptic remark to Tilmann Geske’s widow, Suzanne Geske, who continues to live in Malatya with her three children and regularly attends the murder hearings.

“I want to ask Suzanne, what business does a German have here?”

The judges finally threw Aral out of the courtroom for contempt of court when he told the judges: “You are in the clouds!”

Prosecuting lawyers still hope judges will join the Malatya case files to the Cage Plan case, which is being tried at an Istanbul court.

The threat of violence against Christians continues. Last week Turkish news sources reported that Istanbul police arrested two suspects, ages 17 and 18, accused of plotting to assassinate a priest on the European side of the city. The Istanbul Public Prosecutor’s Office is examining their case.

Report from Compass Direct News
http://www.compassdirect.org

Government crackdown on missionary presence could get worse


The Kazakh government continues to put pressure on foreign missionaries attempting to obtain visas to stay in the country. The Kazakh church is prepared for matters to get worse, reports MNN.

"Foreign involvement for the purpose of missionary work in Kazakhstan becomes increasingly difficult to happen," confirms Eric Mock, vice president of Ministry Operations for Slavic Gospel Association.

Norwegian news network Forum 18 conveys a number of instances in which the Kazakh government has denied visas to foreign missionaries of various minority faiths. A missionary visa, as it is, lasts only 180 days and cannot be renewed.

Mock says there is some fear that the visas will become even more restrictive. According to Forum 18, the Nur Otan Party has even created a document calling for further crackdown on "non-traditional faiths." Forum 18 quotes a report as saying, "The Nur Otan Party should devote special attention to the activity of non-traditional religious movements of destructive character. The destructive impact of such movements is very great."

With clear contempt toward the presence of evangelical Christian missionaries as well as missionaries for other minority faiths, the church as well as ministries like SGA need to prepare for any change. "[We need to] be sure that we do not assume that the world that we minister in today is the same that we minister in tomorrow," says Mock.

Whether or not missionary presence is increasingly restricted does not directly affect SGA, since their ministry mainly focuses on helping nationals. Still, won’t a crackdown harm the church? Mock says not as much as you might think.

"There is one thing that I saw [in Kazakhstan] that mostly encouraged my heart," explains Mock. "I saw a group of ethnic Kazakh young men who God has raised up with a passion to reach their own people. I had not really seen that in the past; it [had been] more of a Russian Baptist influence, but now I’m seeing Kazakh Baptist."

As long as changes don’t happen too abruptly, Mock says he believes the church will be able to handle any blows headed their way. The energy generated by young church leaders could be just what the Kazakh church needs to become self-sustaining. "With this new generation coming up, I think even with law changes, God has raised up this younger generation to make a profound impact for the sake of the Gospel."

If laws are passed too quickly or even just gradually, their effects will still of course be evident in the church. Mock says the best thing that we can do for them now is to pray. "There is nothing more important than praying for the believers in Kazakhstan to be passionate in reaching their own people, and to see more churches planted with that same commitment to advance the Gospel."

Report from the Christian Telegraph

Julia Gillard has Announced New Ministry for Minority Government


Prime Minister Gulia Gillard has announced the make up of her new ministry in Australia’s 43rd national government, in the current ALP minority government supported by the Greens and Independents. A Regional Ministry position was turned down by Independent Rob Oakeshott. There are several changes to the ALP team. The entire ministry can be viewed at:

http://alp.org.au/federal-government/news/prime-minister-announces-new-ministry/

Vietnam stepping up religious rights abuses, experts say


Government-perpetrated violence against a Catholic village in Vietnam has highlighted a series of human rights abuses in the communist nation, and three U.S. congressmen are calling on the United Nations to intervene, reports Baptist Press.

"A few months ago during a religious funeral procession, Vietnamese authorities and riot police disrupted that sad and solemn occasion, shooting tear gas and rubber bullets into the crowd, beating mourners with batons and electric rods," Rep. Chris Smith, R.-N.J., said at a hearing of the Tom Lantos Human Rights Commission in August.

"More than 100 were injured, dozens were arrested and several remain in custody and have reportedly been severely beaten and tortured. At least two innocent people have been murdered by the Vietnamese police," Smith said.

The Con Dau tragedy, Smith said, "is unfortunately not an isolated incident." Property disputes between the government and the Catholic church continue to lead to harassment, property destruction and violence, Smith said, referring to a report by the U.S. Commission on International Religious Freedom.

"In recent years, the Vietnamese government has stepped up its persecution of Catholic believers, bulldozing churches, dismantling crucifixes and wreaking havoc on peaceful prayer vigils," Smith said.

Persecution is not limited to Catholics, though, as Smith had a list of nearly 300 Montagnard political and religious prisoners. In January, the Vietnamese government sentenced two Montagnard Christians to 9 and 12 years imprisonment for organizing a house church, and others have been arrested in connection with house churches, Smith said.

"The arrests were accompanied by beatings and torture by electroshock devices," the congressman said. "We must not forget the sufferings of Khmer Krom Buddhists, Cao Dai, Hoa Hao, the Unified Buddhist Church of Vietnam and others. The said reality is that the Vietnamese government persecutes any religious group that does not submit to government control."

The violence in the 80-year-old Catholic village of Con Dau in central Vietnam reportedly stemmed from a government directive for residents to abandon the village to make way for the construction of a resort.

International Christian Concern, a Washington-based watchdog group, reported that when Con Dau residents refused to leave, water irrigation was shut off to their rice fields, stopping the main source of income and food.

In May, police attacked the funeral procession, beating more than 60 people, including a pregnant woman who was struck in the stomach until she had a miscarriage, ICC said.

One of the funeral procession leaders later was confronted by police in his home, where they beat him for about four hours and then released him. He died the next day, ICC said. Eight people remain in police custody and are awaiting trial.

"The people of Con Dau are living in desperate fear and confusion," Thang Nguyen, executive director of an organization representing Con Dau victims, told ICC. "Hundreds of residents have been fined, and many have escaped to Thailand."

Smith, along with Rep. Joseph Cao, R.-La., and Frank Wolf, R.-Va., introduced a House resolution in July calling for the United Nations to appoint a special investigator to probe "ongoing and serious human rights violations in Vietnam." In August, the Lantos Commission met in emergency session to address the "brutal murders and systematic treatment of Catholics in Con Dau."

"The Vietnamese government justifies this violence, torture and murder because the villagers of Con Dau had previously been ordered, some through coercion, to leave their village, property, church, century-old cemetery, their religious heritage, and to forgo equitable compensation in order to make way for a new ‘green’ resort," Smith said at the hearing. "Nothing, however, not even governmental orders, grant license for government-sanctioned murder and other human rights abuses."

The U.S. Department of State declined to testify before the Lantos Commission, and the U.S. ambassador to Vietnam characterized the Con Dau incident as a land dispute and refused to get involved.

Logan Maurer, a spokesman for International Christian Concern, told Baptist Press he has publicized about 10 different incidents of persecution in Vietnam during the past few months.

"In some cases, especially in Southeast Asia, religious persecution becomes a gray area. We also work extensively in Burma, where often there are mixed motives for why a particular village is attacked," Maurer said. "Is it because they’re Christian? Well, partially. Is it because they’re an ethnic minority? Partially.

"So I think the same thing happens in Vietnam where you have a whole village that’s Catholic. One hundred percent of it was Catholic," he said of Con Dau.

Maurer explained that local government officials in Vietnam generally align Christianity with the western world and democracy, which is still seen as an enemy in Vietnam on a local level.

"As far as the official government Vietnamese position, that’s different, but local government officials do not take kindly to Christians and never have. We have documented many cases of government officials saying Christianity is the enemy. So here it’s mixed motives as best we can figure out," Maurer said.

"They wanted to build a resort there, and they could have picked a different village but they chose the one on purpose that was Catholic because it represents multiple minorities — minority religion, minority also in terms of people that can’t fight back. If they go seek government help, the government is not going to help them."

A Christian volunteer who has visited Vietnam five times in the past decade told Baptist Press the Con Dau incident illustrates the way the Vietnamese government responds to any kind of dissent.

"In our country, and in modern democracies, there are methods for resolving disputes with the government, taking them to court, trying to work through the mediation process," the volunteer, who did not want to be identified, said. "In Vietnam there is no such thing. It is the government’s will or there will be violence."

Vietnam’s constitution includes a provision for religious liberty, but the volunteer said that only goes as far as the communal will of the people, which is monopolized by the Communist Party.

"So when the Communist Party says you can’t build a church there or you can’t worship this way, those who say, ‘Well, I have religious freedom,’ are essentially trumped by the constitution that says it’s the will of the people, not individual liberty that’s important," the volunteer said.

The government in Vietnam has made efforts during the past 15 years to open up the country to economic development, and with that has come an influx of some western values and a lot of Christians doing work there, the volunteer said.

"I would first caution Christians to still be careful when they’re there working," he said, adding that government officials closely watch Christians who visit from other countries, and books about Jesus cause trouble.

Secondly, the volunteer warned that all news emerging from Vietnam must be tested for accuracy on both sides because both those who are persecuting and those who are sounding the alarm on persecution have their own political goals.

"That being said, I don’t doubt that this happened," the volunteer said regarding Con Dau.

International Christian Concern urges Americans to contact the Vietnamese Embassy in Washington at 202-861-0737, and the Christian volunteer said people can contact the U.S. Commission on International Religious Freedom to encourage changes in Vietnam.

"They can also directly e-mail the ambassador and the consular general in Ho Chi Minh City and encourage them to push for more reform," he said. "And they can contact companies that are having products made in Vietnam and encourage the business leaders to speak out for change in those countries. You go to JC Penney today in the men’s department and pick up almost anything, it’s made in Vietnam. That’s the kind of pressure they could put on them."

Report from the Christian Telegraph