BUSINESS AND POLITICS – AUSTRALIA

Target surplus, but keep on spending

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Original article by Rosie Lewis
The Australian – Page: 6 : 10-Jul-19

Australian Industry Group CEO Innes Willox says there is scope for the federal government to pursue stimulus measures in addition to its income tax cuts package. He says that although returning the Budget to surplus should remain a priority, there should also be increased government spending in areas that will generate economic growth. Treasury Josh Frydenberg is confident that the economy will be boosted by factors such as the tax cuts, monetary policy easing and the Coalition’s infrastructure spending program.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN RESOURCES AND ENERGY GROUP, AUSTRALIAN LABOR PARTY

Lower wholesale power prices a pipe dream

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Original article by Mark Ludlow
The Australian Financial Review – Page: 6 : 9-Jul-19

Energy Users Association of Australia CEO Andrew Richards has questioned whether the federal government can deliver on its promise to reduce wholesale electricity prices to $70 per megawatt-hour by 2021. The wholesale price of electricity is currently around $95 per megawatt hour, and Richards says it is unlikely to fall much below $80. He adds that the federal government’s intervention in the energy market has also "spooked" some investors.

CORPORATES
ENERGY USERS ASSOCIATION OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ENERGYAUSTRALIA PTY LTD, GRATTAN INSTITUTE, AUSTRALIAN ENERGY COUNCIL

Big super ready to fund infrastructure

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 9-Jul-19

IFM Investors CEO Brett Himbury has argued the case for industry superannuation funds to invest in public infrastructure, saying they are prepared to buy into both new and existing assets. Himbury concedes that there is still some concern about the partial sale of public assets; however, he stresses that unlike some private investors, super funds are focused on long-term returns rather than short-term profits. Former ACTU secretary Bill Kelty has proposed the creation of a new government-backed asset class that is focused on infrastructure.

CORPORATES
IFM INVESTORS PTY LTD, ACTU, INFRADEBT PTY LTD

IR reform urgent for economy

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Original article by Rosie Lewis
The Australian – Page: 1 & 4 : 8-Jul-19

Business leaders have identified changes to the industrial relations system as a priority for the federal government following the passage of its income tax cuts package. Australian Industry Group CEO Innes Willox and Australian Resources & Energy Group CEO Steve Knott say the reform agenda should include changes to the ‘better off overall test’ for enterprise agreements, passing the Ensuring Integrity Bill and Proper Use of Worker Benefits Bill, and a review of unfair dismissal and adverse action laws. They argue that major changes to the Fair Work Act are not necessary.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN RESOURCES AND ENERGY GROUP, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIAN LABOR PARTY, ACTU, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. FAIR WORK COMMISSION

$15bn kickstart for economy

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Original article by Geoff Chambers, Adam Creighton, Greg Brown, Michael Roddan
The Australian – Page: 1 & 4 : 5-Jul-19

Harvey Norman executive chairman Gerry Harvey says the federal government’s income tax cuts will boost the retail sector and consumer spending. The tax cuts have also been welcomed by Business Council of Australia CEO Jennifer Westacott, who says further action is needed to ensure long-term economic growth. Meanwhile, Chris Richardson of Deloitte Access Economics expects the tax cuts to have a bigger impact in the near-term than the recent interest rate cuts. Labor agreed to back the full tax package in the Senate after its proposal to bring forward the stage-two cuts and legislate stage three separately was rejected.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BUSINESS COUNCIL OF AUSTRALIA, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AMP CAPITAL INVESTORS LIMITED, AUSTRALIAN TAXATION OFFICE, ONE NATION PARTY, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Media bosses in dark on charges

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Original article by Rosie Lewis
The Australian – Page: 4 : 4-Jul-19

Attorney-General Christian Porter and Communications Minister Paul Fletcher held talks with media industry representatives on 3 July. The meeting failed to ease the media sector’s concerns about Australian Federal Police raids on the ABC’s Sydney office and the home of a News Corp Australia journalist in early June, and whether journalists will face prosecution as a result of the raids. Media executives have also expressed reservations about the government’s plans for the parliamentary joint committee on intelligence and security to hold an inquiry into press freedom.

CORPORATES
AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN BROADCASTING CORPORATION, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SPECIAL BROADCASTING SERVICE (SBS), FREE TV AUSTRALIA LIMITED, AUSTRALIA. PARLIAMENTARY JOINT COMMITTEE ON INTELLIGENCE AND SECURITY, AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE

Super funds seek energy policy action

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Original article by Perry Williams
The Australian – Page: 17 & 28 : 25-Jun-19

Industry Super Australia says the nation’s energy policy needs to be overhauled quickly to prevent heavy industries going offshore. ISA contends that the amount of investment needed in electricity should be attracting the interest of portfolio investors, but a lack of certainty on energy policy means this is not occurring. ISA says there should be a focus on the creation of competition for long-term supply of energy and capacity at specified emissions targets, as well as the formation of special investment vehicles to encourage investment in the energy sector.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD

Green tape priority for red tape review

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Original article by Andrew Tillett, Matthew Cranston
The Australian Financial Review – Page: 6 : 25-Jun-19

EnergyAustralia chairman Graham Bradley has welcomed the federal government’s decision to undertake a review of red tape. However, he notes that the regulatory burden on businesses has increased over the last 15 years, despite efforts to address the problem. Bradley has identified the duplication of approval processes between state and federal governments as one of the key contributors to project cost blowouts. Minerals Council of Australia CEO Tania Constable agrees that duplication is a problem, and she stresses the need for better regulation rather than simply more regulation.

CORPORATES
ENERGYAUSTRALIA PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BUSINESS COUNCIL OF AUSTRALIA, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Business urges new work rules

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 1 & 4 : 25-Jun-19

Prime Minister Scott Morrison discussed the federal government’s industrial relations policy in a speech to the Chamber of Commerce & Industry of Western Australia on 24 June. Business leaders have outlined the workplace reforms they would like to see during the Coalition’s third term in office. Australian Mines & Metals Association CEO Steve Knott says an overhaul of the enterprise bargaining system should be a priority, as well as changes to the ‘better off overall test’. Australian Chamber of Commerce & Industry CEO James Pearson in turn has called for changes to small business dismissal laws.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED), AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP, ACTU, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIA. FAIR WORK COMMISSION, THE AUSTRALIA INSTITUTE LIMITED. CENTRE FOR FUTURE WORK

Canberra puts its foot on the gas

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Original article by Nick Evans, Paul Garvey
The Australian – Page: 17 & 28 : 20-Jun-19

The federal government will put pressure on Woodside Petroleum and its Browse LNG joint venture partners to commit to developing the gas project. The current retention lease expires in mid-2020, and Resources Minister Matt Canavan has warned that the Browse partners risk losing the licence if they cannot demonstrate that they are ready to make a final investment decision. Fortescue Metals Group is among the companies that could potentially take up the Browse lease if Woodside and its partners are forced to relinquish it.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROYAL DUTCH SHELL PLC, BP PLC, PETROCHINA COMPANY LIMITED