Australia Facing a Brick Wall of Blackouts by Jerry Ellis and Sir Rod Carnegie

19 February 2019

The Chairman of the Saltbush Club, Mr Jerry Ellis, today warned that Australia needs more reliable baseload power.

“With the population and the economy growing, but with electricity availability and reliability in decline, we are racing headlong into a brick wall of blackouts.

“Recession and disruption will probably follow, bringing to mind those memorable 1990 words of Paul Keating: ‘This is the recession we had to have’. Except in this case the recession will be self-inflicted.

“Much of my working life was in the steel industry in the 1970s and 1980s. It operated 24×7, with large numbers of electric motors requiring a continuous supply of low-cost electrical power. Un-planned interruptions were rare, but when they occurred they were very costly.

“Now we face the prospect of planned and unplanned loss of power due to the rundown of base-load power capacity. It must be a nightmare for today’s steelmakers and aluminium refineries facing this growing crisis.

“It is essential that Australia rebalances economic imperatives against populist ideas regarding the release of carbon dioxide to the atmosphere.

“A strong Australian economy is crucial to Australia’s welfare and will also make a valuable contribution to world prosperity.

“Australia produces a tiny proportion of the world’s carbon dioxide. Even total closure of our industry would have no detectable impact on carbon dioxide emissions or global climate.

“We urgently need new supplies of reliable energy from coal, gas, hydro or nuclear.”

Jerry Ellis was supported by Sir Rod Carnegie, former Managing Director, CEO and Chairman of CRA (Rio Tinto) who said:

“It is essential that Australia regains its reputation for cheap reliable electricity or we will lose our manufacturing and refining industries, returning only to our backbone industries of agriculture and mining”.


Jerry Ellis
Email: ellisann3@gmail.com

Jerry Ellis once managed Australia’s biggest steelworks at Port Kembla, and one of the world’s largest mining enterprises BHP minerals. He is a past Chairman of BHP and of Landcare.

Sir Rod Carnegie
PA Phone: 0419 329 700

Saltbush Club
Viv Forbes

Labor split erupts over Adani coal mine

Original article by Mark Ludlow
The Australian Financial Review – Page: 1 & 2 : 19-Feb-19

CFMMEU Mining and Energy Queensland president Steve Smyth has accused the state government of a "go-slow" on approving Adani’s $2 billion Carmichael coal mine. It has been suggested that the government is trying to delay approval of the mine until after the federal election, so as to minimise any potential political damage to Opposition Leader Bill Shorten. Smyth says people in regional Queensland want to see the mine proceed, while he contends that thousands of jobs in the Galilee Basin are at risk if the state government does not approve the mine.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ADANI MINING PTY LTD, AUSTRALIAN GREENS, QUEENSLAND. DEPT OF NATURAL RESOURCES AND MINES, WARATAH COAL PTY LTD, GVK INDUSTRIES LIMITED, QUEENSLAND. DEPT OF ENVIRONMENT AND HERITAGE PROTECTION

South32-run Port Kembla locks out union over rolling stoppages

Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 19-Feb-19

Members of the Construction, Forestry, Maritime, Mining & Energy Union were denied access to the Port Kembla Coal Terminal on 18 February, amid growing tensions over negotiations for a new enterprise bargaining agreement. The lockout will remain in force until 27 February, and coal will be loaded onto ships using contractors. South32, which partly owns the coal terminal, is currently engaged in conciliation talks regarding a separate EBA for workers at its New South Wales mines.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, PORT KEMBLA COAL TERMINAL LIMITED, SOUTH32 LIMITED – ASX S32, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN LABOR PARTY

Police wanted to prosecute at least one over AWU leak

Original article by Andrew Tillett
The Australian Financial Review – Page: 8 : 19-Feb-19

The Australian Federal Police have disclosed that there seemed to be enough evidence to justify charging at least one person for leaking details of raids on the offices of the Australian Workers’ Union in October 2017. However, the Commonwealth Director of Public Prosecutions ruled against any prosecutions. The AFP’s Deputy Commissioner Leanne Close has also revealed that former industrial relations minister Michaelia Cash and former justice minister Michael Keenan declined to provide witness statements on two separate occasions, and had instead submitted written letters to the AFP.

CORPORATES
AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Last weekend’s Roy Morgan face-to-face poll shows: ALP 52.5%, L-NP 47.5%. L-NP jump 3% on 2PP after ALP vote to loosen border protection laws

Original article by Roy Morgan
Market Research Update – Page: Online : 19-Feb-19

An Australia-wide Roy Morgan face-to-face poll conducted over the weekend of 16-17 February shows that support for the ALP on a two-party preferred basis is 52.5%, compared with 47.5% for the L-NP. There has been a 3% swing to the L-NP on a two-party preferred basis following the ALP’s decision to back the medivac legislation. The L-NP’s primary vote has risen by 2.5% to 37%, while the ALP’s primary vote has fallen 1.5% to 34.5%. Roy Morgan’s executive chairman Gary Morgan says the results of the Roy Morgan poll show that the issue of border protection is a major strength for the L-NP; however, a lot can happen between now and the Federal Election in May.

CORPORATES
MORGAN POLL, ROY MORGAN LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Stan tipped for subscriber lift from Disney deal

Original article by Max Mason
The Australian Financial Review – Page: 29 : 19-Feb-19

Fraser McLeish of MST Marquee expects subscription video-on-demand provider Stan to have enjoyed strong growth in its customer base over the 2018-19 summer, following its content deal with Walt Disney Company in December. Nine Entertainment Company will shortly release the first subscription data for Stan since August, when it had 1.1 million active subscribers. MST Marquee values Stan at $500m, and McLeish believes that the SVOD provider’s value is not being reflected in Nine’s share price.

CORPORATES
STAN ENTERTAINMENT PTY LTD, WALT DISNEY COMPANY, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, MST MARQUEE, FAIRFAX MEDIA LIMITED, GRANT SAMUEL AND ASSOCIATES PTY LTD

Free TV calls for tax breaks for news production to curtail Google, Facebook

Original article by Lilly Vitorovich
The Australian – Page: Online : 19-Feb-19

Free TV Australia CEO Bridget Fair has urged the Australian Competition & Consumer Commission to develop new regulations for digital platforms in the wake of its landmark inquiry into the sector. Amongst other things, Free TV suggests that digital platforms could be subject to undertakings to ensure that media companies are fairly paid for their content. The lobby group has also proposed the introduction of a tax offset for the production of local news and journalistic content.

CORPORATES
FREE TV AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

Super changes to cost AMP $30m annually

Original article by Misa Han
The Australian Financial Review – Page: 19 : 19-Feb-19

Embattled wealth manager AMP has advised that the federal government’s superannuation reforms will reduce its operating earnings by about $10m in 2019 and up to $30m in 2020. The reforms will allow the Australian Taxation Office to consolidate super accounts that are inactive or have low balances. AMP estimates that the reforms will affect about 370,000 of its super accounts. The bill has been passed by the Senate with the Greens’ support, although it has yet to be passed by the lower house.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN GREENS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Westpac cops flak after flat quarterly post

Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 19-Feb-19

Westpac has reported a statutory net profit of $1.95bn and a cash profit of $2.04bn for the December 2018 quarter. Both figures were largely unchanged from the two previous quarters. Westpac has also advised that its net interest margin rose during the quarter, while there was an increase in both secured and unsecured mortgage delinquencies. Meanwhile, the Australian Securities & Investments Commission will appeal a Federal Court ruling that a marketing campaign by Westpac’s BT arm between 2014 and 2016 did not breach its financial services licence.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT FINANCIAL GROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Earnings hit tipped for BHP

Original article by Paul Garvey
The Australian – Page: 20 : 19-Feb-19

BHP will post a net profit of $US3.9bn for the first half of 2018-19, according to the consensus forecast of analysts. This compares with $US4.1bn for the previous corresponding period. EBITDA is tipped to fall from $US12.8bn to $US10.6bn, although an expected strong rise in the petroleum division’s EBITDA will help offset the underperformance elsewhere in BHP’s portfolio. Meanwhile, BHP’s interim dividend is expected to fall from $US0.55 per share to $US0.53, although the downturn in the Australian dollar will boost the dividend payout of local investors.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA