BUSINESS AND POLITICS – AUSTRALIA

AGL defies Coalition over Liddell closure

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Original article by Angela Macdonald-Smith, Ben Potter
The Australian Financial Review – Page: 1 & 6 : 27-Sep-18

AGL Energy’s interim CEO Brett Redman has reaffirmed its commitment to exiting coal-fired power generation and its proposed closure of the Liddell power station in 2022. However, Redman has told the company’s AGM that AGL will seek to work with the federal government to reduce electricity prices. Relations between AGL and the government became strained under former CEO Andy Vesey over the closure of Liddell, prompting Energy Minister Angus Taylor to warn of potential intervention if electricity retailers do not take action to reduce prices.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, MACQUARIE GROUP LIMITED – ASX MQG, ENVIRONMENT VICTORIA

Small business tax cuts miss the point

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Original article by Ronald Mizen
The Australian Financial Review – Page: 7 : 30-Aug-18

Prime Minister Scott Morrison recently signalled that the small and medium business sector will be the focus of his government’s company tax policy. However, Jeremy Thorpe of PricewaterhouseCoopers argues that tax cuts for the small business sector should not be a priority as such businesses generally do not need to be globally competitive. Grant Wardell-Johnson of KPMG agrees, noting that large companies deliver the great economic benefit from tax cuts.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, KPMG AUSTRALIA PTY LTD, ERNST AND YOUNG, AUSTRALIAN LABOR PARTY

Business lists IR demands for O’Dwyer

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Original article by Dana McCauley, Nick Toscano
The Age – Page: 5 : 30-Aug-18

Australian Industry Group CEO Innes Willox says the passage of three key workplace relations bills through Parliament should be a priority for incoming Industrial Relations Minister Kelly O’Dwyer. The federal government shelved its Ensuring Integrity Bill earlier in 2018, while the Proper Use of Worker Benefits Bill remains stalled in the upper house and Labor has blocked a bill to scrap four-yearly reviews of industrial awards. Willox has also urged O’Dwyer to intervene in a court case regarding the employment status of casual workers.

CORPORATES
AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, THE AUSTRALIAN INDUSTRY GROUP, WORKPAC PTY LTD, FEDERAL COURT OF AUSTRALIA, HIGH COURT OF AUSTRALIA, MONDELEZ AUSTRALIA (FOODS) LIMITED, AUSTRALIA. FAIR WORK COMMISSION, ACTU, BORAL LIMITED – ASX BLD, AUSTRALIAN LABOR PARTY

Brace for blackouts without the NEG

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Original article by Andrew White, Perry Williams
The Australian – Page: 17 & 20 : 28-Aug-18

Australians have been warned to prepare for power blackouts after the federal government shelved its National Energy Guarantee. Rick Francis, the CEO of Spark Infrastructure, says not having an NEG means the energy sector lacks any "mechanism" to steer it through the transition to increased renewable energy generation. Stephen Bell, the CEO of petrochemicals producer Qenos, is disappointed that the federal government had chosen not to proceed with the NEG.

CORPORATES
SPARK INFRASTRUCTURE GROUP – ASX SKI, QENOS PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ERNST AND YOUNG, AUSTRALIAN ENERGY COUNCIL

Exposure was good for banks: Elliott

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Original article by Richard Gluyas
The Australian – Page: 21 : 24-Aug-18

ANZ Bank CEO Shayne Elliott has no regrets about his involvement in calling for the financial services royal commission, even though the evidence it has presented has been "confronting". The CEOs and chairmen of the major banks urged Treasurer Scott Morrison to hold the inquiry in a letter sent to him in November 2017. They noted that confidence in the financial system was being hurt by the ongoing speculation about the prospect of a royal commission.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY

ACCC power would be a catastrophe

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Original article by Ben Potter
The Australian Financial Review – Page: 9 : 22-Aug-18

Danny Price of Frontier Economics has warned that giving the competition regulator the power to break up vertically integrated energy companies would undermine investor confidence in both the sector itself and other industries that could potentially be subject to such regulation. Price adds that consumers would be worse off, as AGL Energy, EnergyAustralia and Origin Energy have accounted for the bulk of investment in new electric power generation capacity over the last decade.

CORPORATES
FRONTIER ECONOMICS PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AGL ENERGY LIMITED – ASX AGL, ENERGYAUSTRALIA PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA. ENERGY SECURITY BOARD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BLOOMBERG NEW ENERGY FINANCE, MELBOURNE BUSINESS SCHOOL, RESERVE BANK OF AUSTRALIA, HIGH COURT OF AUSTRALIA

Coalition, business keen on overseas company tax model

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 15-Aug-18

The Senate is expected to reject the Federal Government’s bill to reduce the tax rate for companies with turnover of at least $50m. Foreign Minister Julie Bishop has told parliament of the need for Australia to have a globally competitive company tax rate, while BlueScope Steel CEO Mark Vassella has called for the introduction of similar tax reforms to those implemented in the US. He has stressed the importance of lower operating costs for businesses in stimulating economic growth.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, BLUESCOPE STEEL LIMITED – ASX BSL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE

Gas cost killing industry, Dow says

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Original article by Perry Williams
The Australian – Page: 17 & 28 : 14-Aug-18

Dow Chemical’s Australian head Louis Vega has urged support for the National Energy Guarantee, while calling on states and territories to allow new gas developments. He hopes both initiatives will put downward pressure on gas prices, warning that some heavy industries may have to shut down if gas prices remain high. Tomago Aluminium, which is the biggest user of energy in Australia, says the life of the nation’s coal-fired power plants need to be extended to help maintain the stability of the national grid.

CORPORATES
DOW CHEMICAL AUSTRALIA LIMITED, TOMAGO ALUMINIUM COMPANY PTY LTD, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

MP’s support for coal spot on

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Original article by Greg Brown
The Australian – Page: 6 : 8-Aug-18

Whitehaven Coal CEO Paul Flynn has welcomed comments made by Labor MP Meryl Swanson in support of coal-fired power generation using low-emissions technology. Swanson recently toured high energy, low emissions power stations in Japan as part of a bipartisan delegation. Flynn says Australia should consider the construction of such power stations, noting that Japan accounts for about 60 per cent of Whitehaven’s thermal coal exports. However, Labor’s energy spokesman Mark Butler says HELE power stations are expensive to build and they produce more carbon emissions that gas-fired power stations.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, COAL21, MINERALS COUNCIL OF AUSTRALIA

Business split over carbon offsets

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Original article by Mark Ludlow
The Australian Financial Review – Page: 3 : 20-Jul-18

Energy Minister Josh Frydenberg is yet to decide whether international carbon offsets should be used as part of the National Energy Guarantee. Those opposing the idea include Labor and large energy users, while the Business Council of Australia is in favour of their use. Dow Chemical noted in its submission on the NEG that Europe’s experience in this area indicates that there is potential for abuse when international carbon offsets are utilised.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, DOW CHEMICAL AUSTRALIA LIMITED, CLEAN ENERGY COUNCIL LIMITED, GREENPEACE AUSTRALIA PACIFIC LIMITED, MINERALS COUNCIL OF AUSTRALIA, REPUTEX AUSTRALIA PACIFIC PTY LTD