BUSINESS AND POLITICS – AUSTRALIA

Miners seek assurance on fuel tax break

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 21-Apr-20

The resources sector is lobbying the federal government not to touch the diesel excise rebate as it looks at ways to repay the cost of the COVID-19 pandemic. The rebate is worth around $2 billion to the resources sector; it is also received by other industries, including fishing and agriculture. Minerals Council of Australia CEO Tania Constable contends that imposing higher taxes to pay for the cost of COVID-19 will harm jobs and curtail growth, while she notes that both the Henry tax review and Treasury are of the view that the fuel tax credit is sound economic policy.

CORPORATES
MINERAL COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Coalition pressure to rescue Virgin

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Original article by Simon Benson, Sarah Elks
The Australian – Page: 1 & 2 : 20-Apr-20

It is understood that Virgin Australia could be placed into voluntary administration within days unless the federal government steps in to save the airline or it can be rescued by the private sector. Former Queensland premier Peter Beattie, who gave Virgin $10 million to base its headquarters in Brisbane in 2000, says the tourism sector would be "devastated" if the airline goes under. Federal Liberal MP Jason ­Falinski believes that Virgin needs to be kept afloat, and that the federal government and taxpayers may end up being the "buyer of last resort".

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, LIBERAL PARTY OF AUSTRALIA

BCA plan aims to accelerate recovery

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 20-Apr-20

The Business Council of Australia has developed a three-tier plan for restarting the domestic economy when coronavirus lockdown restrictions start to be eased. Amongst other things, the discussion paper proposes a gradual resumption of office-based work, with appropriate health and safety measures to protect workers. The BCA has also called for regulatory and industrial relations reforms to boost economic activity, while it says the focus of government assistance should shift to accelerating the economy rather than keeping it on ‘life support’.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA

PM flags business growth plan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 17-Apr-20

Prime Minister Scott Morrison has told a meeting of the national cabinet that pro-growth economic policy measures will be required in the post-coronavirus environment. He has stressed that business rather than government will lead the economic recovery, so there will be a need for policies that encourage employers to invest in their business and to hire people. Morrison has also raised the prospect that some of the policies that the Coalition took to the May 2019 election might need to be shelved. Business Council of Australia CEO Jennifer Westacott has expressed support for Morrison’s pro-business focus.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BUSINESS COUNCIL OF AUSTRALIA

It’s too little, too late: media lament aid deal

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Original article by Lilly Vitorovich, Leo Shanahan
The Australian – Page: 13 & 16 : 16-Apr-20

The federal government has announced a $91m financial relief package for the media sector, which has been hard hit by the coronavirus pandemic. Amongst other things, the government will suspend content quotas for local drama and children’s programs for the rest of the year, while TV and radio networks will collectively receive $41m in tax rebates for spectrum fees. Regional media companies will also receive financial support totalling $50m. However, industry executives had hoped for a further relaxation of cross-media ownership laws and action to force digital companies to pay for content.

CORPORATES
AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND COMMUNICATIONS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TEN NETWORK HOLDINGS LIMITED, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN COMMUNITY MEDIA, ELLIOTT NEWSPAPER GROUP PTY LTD, PRIME MEDIA GROUP LIMITED – ASX PRT, HT&E LIMITED – ASX HT1

Virgin ups ante with threat of administration

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Original article by Lucas Baird, Andrew Tillett
The Australian Financial Review – Page: 15 & 20 : 15-Apr-20

Shares in Virgin Australia Holdings were placed in a trading halt on 14 April as the embattled carrier continues to seek financial assistance. The federal government is resisting Virgin’s push for taxpayers’ support, prompting Virgin to warn that it may appoint voluntary administrators within a month if it does not receive a bailout. Treasurer Josh Frydenberg has emphasised that any government assistance for the aviation sector must be industry-wide. Labor leader Anthony Albanese contends that the government could take an equity stake in Virgin and sell it in the future.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Big tech must pay media: Fletcher

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Original article by David Swan, Dennis Shanahan
The Australian – Page: 19 : 13-Apr-20

Federal Communications Minister Paul Fletcher has welcomed the recent ruling that Google must negotiate a deal with French news publishers to pay for their content. He adds that the government’s expectation is that digital companies will also agree to pay Australian news publishers for their content. Seven West Media director Ryan Stokes says there must be "proper and fair renumeration" for local news content; he notes that the impact of the coronavirus pandemic has increased the importance of such a deal.

CORPORATES
AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND COMMUNICATIONS, GOOGLE INCORPORATED, SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Virgin CEO in Canberra bailout pitch

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Original article by Robyn Ironside, Bridget Carter
The Australian – Page: 13 & 16 : 14-Apr-20

The federal government is believed to be considering additional financial support for the nation’s airlines, to ensure that passenger and freight services continue on essential domestic routes. Virgin Australia CEO Paul Scurrah has been lobbying government ministers and Labor frontbenchers to secure support for a proposed $1.4bn loan facility for the struggling carrier. Virgin could opt for a creditor’s scheme of arrangement if government support is not forthcoming; this could result in a debt-for-equity swap, which would have to be approved by shareholders and a court. Labor has backed calls for the government to provide more financial support for Virgin.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Regional outlets plead for government help

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Original article by Lilly Vitorovich
The Australian – Page: 19 : 6-Apr-20

Free TV Australia CEO Bridget Fair has warned that the coronavirus pandemic is likely to reduce revenue across the media sector by 40-50 per cent. Regional broadcasters are holding talks with the federal government regarding financial assistance; they are believed to have cited factors such as the complexity of their operations, their large broadcast areas and the fact that metropolitan affiliates receive a significant proportion of their revenue. The print media is also struggling, with publication of some regional and community newspapers having been suspended due to the pandemic.

CORPORATES
FREE TV AUSTRALIA LIMITED, WIN CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN COMMUNITY MEDIA, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BAUER MEDIA AUSTRALIA PTY LTD, PACIFIC MAGAZINES PTY LTD, AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND COMMUNICATIONS

Qantas monopoly risk if Virgin is allowed to fail, warns boss

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Original article by Lucas Baird, Phillip Coorey
The Australian Financial Review – Page: 15 & 18 : 3-Apr-20

Virgin Australia CEO Paul Scurrah has dismissed suggestions that the struggling airline is seeking a federal government bailout. He argues that the $1.4bn loan facility that Virgin is seeking would have to be repaid eventually. Scurrah also warns that Qantas could emerge with a long-term monopoly in the domestic market if Virgin collapses. The government would allow a new entrant to the market, but CAPA Centre for Aviation chairman Peter Harbison says regulatory approvals would take some time, which would further entrench Qantas’s market dominance.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, QANTAS AIRWAYS LIMITED – ASX QAN, CAPA – CENTRE FOR AVIATION