BUSINESS AND POLITICS – AUSTRALIA

PM says it’s enterprise versus envy

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 5-Mar-19

Prime Minister Scott Morrison will tell a business summit on 5 March that the differences on economic policy between the Coalition and Labor are the greatest they have been for over 40 years. Morrison will also announce a $328 million commitment for programs aimed at preventing domestic violence and support for victims. Morrison will also tell the summit that the 2019 federal election presents a choice between "enterprise and envy".

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

PM’s energy free-for-all bid criticised

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Original article by Ben Potter
The Australian Financial Review – Page: 5 : 28-Feb-19

The federal government has announced $3.5bn worth of funding for initiatives in the energy sector in recent days. Prime Minister Scott Morrison announced on 27 February that the government will underwrite three Tasmanian pumped hydro projects in 2021 if feasibility studies conclude that they are economically viable. However, several energy industry executives have criticised the government, accusing it of political ‘pork barrelling’ ahead of the election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SNOWY HYDRO LIMITED, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN ENERGY REGULATOR, AUSTRALIAN LABOR PARTY

BCA has had a gutful of politics

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Feb-19

Business Council of Australia CEO Jennifer Westacott has urged both sides of federal politics to cease their attacks on the business sector and focus on policies to stimulate the economy and wages. She is particularly critical of the government’s proposal to force energy companies to divest assets if they fail to reduce electricity prices, arguing that it will deter investment in Australia and will doing little to provide price relief. Westacott has also criticised Labor’s proposed banking industry reforms in response to the Hayne royal commission.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

PM pumps hydro before coal power

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Original article by Phillip Coorey, Ben Potter
The Australian Financial Review – Page: 1 & 6 : 27-Feb-19

Power industry executives have questioned the merits of the Snowy Hydro expansion program, arguing that it may deter alternative investment in new power generation capacity before Snowy 2.0 is completed. Some have also suggested that a nuclear power station or up to six coal-fired power stations could have been built for the same cost as the Snowy upgrade, which is slated to be between $3.8bn and $4.5bn in total. Meanwhile, Prime Minister Scott Morrison has indicated that the federal government may underwrite a pumped hydro project in Tasmania.

CORPORATES
SNOWY HYDRO LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SUNSET POWER INTERNATIONAL, AUSTRALIA. DEPT OF FINANCE, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, ENERGYAUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TRANSGRID, AUSNET SERVICES LIMITED – ASX AST, AUSTRALIAN LABOR PARTY

Gen-tailer’s 24pc profit lift too high: Taylor

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 22 : 26-Feb-19

EnergyAustralia has posted a 2018 net profit of $566m, which is 24 per cent higher than previously. The result was boosted by higher wholesale electricity prices, while parent company CLP Group says EnergyAustralia’s return on invested capital rose to 10.7 per cent, compared with just 3.3 per cent in 2014. Federal Energy Minister Angus Taylor has responded to strong earnings growth in the electricity sector by again urging generator-retailers to provide price relief for customers.

CORPORATES
ENERGYAUSTRALIA PTY LTD, CLP GROUP, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL

South32 warns of strike risk if ALP wins poll

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 & 18 : 18-Feb-19

South32 CEO Graham Kerr is concerned that Labor’s workplace reform agenda could lead to increased industrial action, particularly in the resources sector. He says the outcome of the upcoming federal election could affect business confidence for at least 12 months. Kerr notes that stability of supply is a major priority for buyers of Australia’s metallurgical coal buyers. He adds that if supply is disrupted they will source coal elsewhere, and it is very hard to regain a customer’s trust once it has been lost. Employers’ groups are also concerned about any move to reinstate industry-wide bargaining.

CORPORATES
SOUTH32 LIMITED – ASX S32, AUSTRALIAN LABOR PARTY, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, TAHMOOR COAL PTY LTD, CENTENNIAL COAL COMPANY LIMITED, WOLLONGONG COAL LIMITED – ASX WLC, PEABODY ENERGY AUSTRALIA COAL PTY LTD, PORT KEMBLA COAL TERMINAL LIMITED

Business bashing poll on the cards

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 15-Feb-19

Prime Minister Scott Morrison has accused Labor of siding with large energy companies over its role in having the federal government withdraw legislation to force them to sell assets if they fail to reduce electricity prices. With the Greens having secured the consent of Labor and six crossbenchers to have the legislation amended so that the government could not subsidise new coal-fired power stations, the government withdrew it, knowing that it would have been defeated in the House of Representatives. The government will now take the legislation, which has been attacked by energy companies and big business, to the upcoming election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AGL ENERGY LIMITED – ASX AGL, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY COUNCIL

Taylor blasts AGL’s high prices

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Original article by Perry Williams
The Australian – Page: 17 & 27 : 8-Feb-19

Energy Minister Angus Taylor contends that Australians should be irate by AGL’s announcement that it has made a $537 million interim net profit. He claims that AGL and other energy companies are making big profits at a time when consumers and businesses are struggling with high power prices. Taylor has also stated that comments by energy companies that the federal government’s "big stick" legislation is deterring investment is false, noting that investment in the sector will exceed $25 billion over the three years to 2020.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ALINTA ENERGY (AUSTRALIA) PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Energy chief lashes dangerous bill

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 7-Feb-19

A Senate committee has been told that a bill to force the divestment of energy assets would create greater uncertainty in the electricity sector. EnergyAustralia MD Catherine Tanna has told the committee that the bill was poorly drafted and there had been insufficient consultation. Frontier Economics has warned of the proposed divestment powers’ impact on investment in the electricity sector. However, others have argued that the reforms are necessary to curb the market power of large vertically integrated electricity suppliers.

CORPORATES
ENERGYAUSTRALIA PTY LTD, FRONTIER ECONOMICS PTY LTD, GRATTAN INSTITUTE, BUSINESS COUNCIL OF AUSTRALIA, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, UNIVERSITY OF MELBOURNE, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN ENERGY REGULATOR, SIMEC ENERGY

Small biz bosses in fear of Labor

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Original article by Adam Creighton
The Australian – Page: 15 & 18 : 25-Jan-19

The Executive Connection’s CEO Confidence Index fell 10 points to 112 in December, the first consecutive decline in two years. The Index is based on responses from around 110 small business owners, with nearly 60 per cent stating that a Labor government would be bad for their business. Labor has foreshadowed a series of tax increases that are tipped to raise $200 billion over a decade, although it has proposed a more generous investment allowance. Over 70 per cent of small business leaders surveyed expect that property prices will continue to fall.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF TECHNOLOGY, SYDNEY, MYOB GROUP LIMITED – ASX MYO, THE AUSTRALIAN INDUSTRY GROUP