O75 Public Administration

Foreign debt levels ‘extreme’

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Original article by Adam Creighton
The Australian – Page: 1 & 5 : 10-Oct-16

John Chambers, who heads the sovereign ratings committee of Standard & Poor’s, has warned that Australia’s "AAA" credit rating may be at risk. He has expressed concern about the nation’s rising net foreign debt, noting that it is among the worst of the 130 sovereign nations that the firm rates. S&P downgraded Australia’s credit rating outlook to "negative" in July 2016. Rival rating agencies have also previously expressed concern about Australia’s fiscal position.

CORPORATES
STANDARD AND POOR’S CORPORATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, FITCH RATINGS LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN GREENS, WORLD BANK, INTERNATIONAL MONETARY FUND

No more rate cuts: Morrison

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 6 : 10-Oct-16

Federal Treasurer Scott Morrison believes that the Reserve Bank of Australia should cease reducing the cash rate, arguing that monetary policy has reached the limit of its effectiveness in stimulating the economy. He says the focus should now shift to fiscal policy. The central bank has reduced the cash rate twice in 2016 but left it on hold at 1.5 per cent in October. Morrison notes that the heads of other central banks have acknowledged the declining effectiveness of monetary policy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, BANK OF ENGLAND, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, GROUP OF TWENTY (G-20), INTERNATIONAL MONETARY FUND, PEOPLE’S BANK OF CHINA, UNITED STATES. FEDERAL RESERVE BOARD

Car industry stalls despite taxpayers fuelling spluttering makes and models

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Original article by Joshua Dowling
The Advertiser – Page: 4 : 7-Oct-16

New figures highlight the cost to taxpayers of the Federal Government’s efforts to prop up Australia’s ailing car industry. Ford Australia received $A42m in funding via the Green Car Innovation Fund, which means taxpayers effectively subsidised each four-cylinder Falcon to the tune of $A7,000. Likewise, GM Holden received $A179m in funding, which equates to a $A1,418 taxpayer subsidy for every Cruze small car. Ford will end 91 years of local production on 7 October 2016, while Holden and Toyota will cease production by the end of 2017.

CORPORATES
FORD MOTOR COMPANY AUSTRALIA LIMITEDGM HOLDEN LIMITEDTOYOTA MOTOR CORPORATION AUSTRALIA LIMITEDAUSTRALIA. GREEN CAR INNOVATION FUNDGENERAL MOTORS CORPORATIONPONTIAC

$41bn blow from green power push

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Original article by David Crowe
The Australian – Page: 1 & 6 : 7-Oct-16

Preliminary figures produced by the federal Department of Environment & Energy show that Queensland would require capital investment of $A27bn to meet the state government’s renewable energy target. Victoria would need to invest some $A14bn in additional renewable energy capacity to achieve its target. Federal Energy Minister Josh Frydenberg says the states should instead adopt the federal government’s target for 23.4 per cent of electric power to be derived from renewables by 2020. Renewables and energy security will be on the agenda of a meeting of state and federal energy ministers on 7 October 2016.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGYAUSTRALIAN ENERGY MARKET OPERATOR LIMITEDACIL ALLEN CONSULTING PTY LTDAUSTRALIAN LABOR PARTYVICTORIA. DEPT OF ENVIRONMENT, LAND, WATER AND PLANNINGTASMANIA. DEPT OF INFRASTRUCTURE, ENERGY AND RESOURCESFRONTIER ECONOMICS PTY LTDVICTORIA. DEPT OF PREMIER AND CABINETQUEENSLAND. DEPT OF THE PREMIER AND CABINETSOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINETAUSNET SERVICES LIMITED – ASX ASTCSIROAUSTRALIAN ENERGY MARKET COMMISSION

Morrison spruiks ‘strong banks’

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 12 : 7-Oct-16

Federal Treasurer Scott Morrison has addressed the American Australian Association during a visit to the US. He stressed the need for banks to be profitable, financially strong and well-regulated, and warned that jobs in the sector would be at risk if Australia’s strong banking system were to be undermined. Morrison has also highlighted the importance of the banking industry in attracting offshore capital. He has also told ratings agency S&P Global that Australia boasts stronger economic growth and lower debt than other countries with a triple-A credit rating.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURYSTANDARD AND POOR’S CORPORATIONAMERICAN AUSTRALIAN ASSOCIATIONAUSTRALIAN LABOR PARTYCITIBANK CORPORATIONINTERNATIONAL MONETARY FUNDNEW YORK STOCK EXCHANGEASX LIMITED – ASX ASX

Bank execs could cop it over failures

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Original article by James EyersJoanna Mather
The Australian Financial Review – Page: 1 & 4 : 7-Oct-16

The Australian Government could introduce legislation to increase the accountability of senior bank executives for the misconduct of their staff. Liberal MP David Coleman, who chairs the parliamentary committee that has grilled the "big four" bank CEOs, notes that the proceedings have heightened the perception that senior personnel have no accountability for scandals in the sector. Labor MP Matt Keogh has suggested that Australia could consider laws based on the so-called "senior managers regime" in the UK.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATIONLIBERAL PARTY OF AUSTRALIAAUSTRALIAN LABOR PARTYNATIONAL AUSTRALIA BANK LIMITED – ASX NABCOMMONWEALTH BANK OF AUSTRALIA – ASX CBAAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZWESTPAC BANKING CORPORATION – ASX WBCAUSTRALIAN GREENSAUSTRALIAN BANKERS’ ASSOCIATIONAUSTRALIAN PUBLIC SERVICE COMMISSION

Bank culture won’t change overnight: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 8 : 6-Oct-16

Prime Minister Malcolm Turnbull says Australian banks require more accountability and transparency. He is confident that requiring the "big four" CEOs to front a parliamentary committee at least once a year will facilitate this, although he concedes that it will take some time for the culture within banks to change. The Federal Government also proposes to create a new tribunal for aggrieved customers to seek restitution, which was backed by Commonwealth Bank CEO Ian Narev and ANZ Bank CEO Shayne Elliott when they fronted the committee.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, LIBERAL PARTY OF AUSTRALIA, TIMBERCORP LIMITED

Ditch lord mayoral car and walk, say Melbourne City Council candidates

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Original article by Clay Lucas
The Age – Page: Online : 5-Oct-16

Melbourne Lord Mayor Robert Doyle has rejected suggestions that the office-holder’s official car and driver should be dumped. Councillor Ken Ong, Phil Cleary and pollster Gary Morgan are among the candidates for lord mayor who argue that an official car is not needed and the incumbent should travel by public transport or on foot. However, Doyle says the role of lord mayor requires attendance at meetings and functions across Melbourne. Meanwhile, Morgan argues that one four-year term as lord mayor is sufficient. Doyle is seeking his third term.

CORPORATES
MELBOURNE CITY COUNCIL

$6bn vocational loan fiasco ends

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Original article by Julie Hare, Kylar Loussikian
The Australian – Page: 2 : 5-Oct-16

The Federal Government will introduce a new student loans scheme, amid revelations that the cost of the VET FEE-HELP scheme has blown out to $A6bn since it was launched in 2012. The scheme was exploited by many private vocational education providers, with many charging exorbitant fees for courses that had little prospect of leading to employment. The new Vocational Education and Training Students Loans scheme will impose stricter eligibility criteria for courses, while student loans will be capped.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CORNERSTONE INVESTMENTS

Regulating profits ‘dangerous’

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Original article by James Eyers, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 5-Oct-16

Commonwealth Bank CEO Ian Narev fronted a parliamentary committee on 4 October 2016, where he responded to questions on issues such as profits, interest rates and the bank’s insurance and financial planning scandals. Narev cautioned against any move to regulate the profits of the banking sector, stressing that banks need healthy profits to ensure that they can ride out economic shocks. The CEOs of the other major banks will appear before the committee in coming days. The Australian Labor Party continues to argue the case for a royal commission into the banking sector.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH FINANCIAL PLANNING LIMITED, COMMINSURE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA