GOVERNMENT SPENDING POLICY – AUSTRALIA

Billions in stimulus to stop slump

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 1 & 6 : 5-Mar-20

Finance Minister Mathias Cormann has warned that the coronavirus will have a "material impact" on Australia’s economic growth in the first half of 2020. Amid growing concern that the nation could go into recession for the first time since 1990-91, the federal government is set to announce a stimulus package that will hit the Budget bottom line. The package will focus on jobs, small business cash flow and capital investment; it is expected to include a business investment allowance that was to have been announced in the May Budget. The stimulus package is likely to result in a deficit for 2019-20.

CORPORATES
AUSTRALIA. DEPT OF FINANCE

Senate to investigate key figures in sports rorts

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Original article by Rob Harris
The Sydney Morning Herald – Page: Online : 6-Feb-20

The Senate has passed Labor’s motion to hold an inquiry into the so-called sports rorts scandal. Amongst other things, the probe will seek the release of a report into the affair by top bureaucrat Phil Gaetjens. It cleared former cabinet minister Bridget McKenzie of any wrongdoing over the allocation of sports grants, but found that she had breach ministerial standards over her failure to declare her membership of a shooting club that received a grant. Shadow sports minister Don Farrell says McKenzie’s former staffers may want to appear before the inquiry.

CORPORATES
AUSTRALIAN LABOR PARTY

MPs warn of side effects if McKenzie fired

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-Jan-20

Agriculture Minister Bridget McKenzie remains under scrutiny over the ‘sports rorts’ scandal in her previous role as sports minister. Senior bureaucrat Phil Gaetjens will release a report into the allocation of sports grants in coming days, amid demands for McKenzie to lose her portfolio. However, some National Party MPs are concerned that removing McKenzie could embroil Prime Minister Scott Morrison in the scandal, as his office is believed to have passed requests for funds from Liberal MPs on to McKenzie’s office.

CORPORATES
AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Turmoil as Nats split on rorts deputy

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Original article by Rosie Lewis, Geoff Chambers
The Australian – Page: 1 & 2 : 24-Jan-20

The future of Agriculture Minister Bridget McKenzie remains under scrutiny in the wake of the so-called ‘sports rorts’ scandal. Prime Minister Scott Morrison has indicated that he will take appropriate action when an investigation by top bureaucrat Philip Gaetjens is completed. However, National Party leader Michael McCormack has expressed support for his embattled deputy, although some Nationals MPs believe that McKenzie’s position is untenable. She was sports minister when the grants for community sports groups were allocated.

CORPORATES
AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PARTY OF AUSTRALIA

PM orders probe into McKenzie

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Original article by Rosie Lewis, Olivia Caisley
The Australian – Page: 1 & 2 : 23-Jan-20

The so-called ‘sports rorts’ scandal that has embroiled Agriculture Minister Bridget McKenzie has been referred to Philip Gaetjens, the secretary of the Department of Prime Minister & Cabinet. He will investigate whether McKenzie breached ministerial standards with regard to the allocation of sports grants in her previous role as sports minister. McKenzie has also been accused of a conflict of interests in giving a $35,000 grant to a clay target club of which she was a member. Labor contends that she may be in contempt of the Senate.

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

$100m sport grants biased

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Original article by Ben Packham
The Australian – Page: 1 & 6 : 16-Jan-20

Auditor-General Grant Hehir has released a report which shows that marginal seats held by the Coalition were among the biggest recipients of grants to ‘grassroots’ sporting groups ahead of the May 2019 federal election. Former sports minister Bridget McKenzie approved the grants, and Hehir found that she failed to take into consideration the recommendations of Sport Australia when allocating the money. The report notes that the grants also favoured seats that the Coalition believed that it could win at the election.

CORPORATES
AUSTRALIA. OFFICE OF THE AUDITOR-GENERAL, AUSTRALIAN NATIONAL AUDIT OFFICE, SPORT AUSTRALIA

Recovery funds to hit budget

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Original article by Geoff Chambers, Rosie Lewis, Patrick Commins, Ean Higgins
The Australian – Page: 1 & 4 : 15-Jan-20

Prime Minister Scott Morrison has confirmed that the Budget bottom line will be impacted by the federal government’s disaster relief measures. However, Morrison has stressed that his priority is to provide bushfire victims with the support they need, now and over the next several years. The government has announced an initial $100m funding package to support farmers, fishers and foresters who have been affected by the bushfires. Details of a $50m funding package for charities and financial counsellors to assist bushfire victims will be announced on 15 January.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

PM stumps up for fire crisis

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Original article by Rosie Lewis
The Australian – Page: 1 & 2 : 6-Jan-20

The federal government has appointed former Australian Federal Police commissioner Andrew ­Colvin to head its national bushfire recovery agency. It will finance the reconstruction of critical infrastructure that has been damaged or destroyed, as well as providing income and mental health support for people who have been affected by the disaster. Prime Minister Scott Morrison has ruled out asking the states to match the federal government’s funding. Natural Disaster and Emergency Management Minister David Littleproud has stressed the need to ensure that government support is tailored to each community that has been affected by the bushfires.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, VICTORIA. DEPT OF TREASURY AND FINANCE, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIAN FEDERAL POLICE

Pumped hydro next on Morrison’s energy list

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Original article by Greg Brown, Joe Kelly
The Australian – Page: 4 : 24-Dec-19

The federal government has given in-principle approval for the construction of two new gas-fired power plants under its Underwriting New Generation Investments. APA Group will build a 220MW gas plant in the Melbourne suburb of Dandenong; the government will also underwrite a 132MW gas plant in the Queensland town of Gatton. The government is also expected to underwrite at least one of three proposed pumped-hydro projects in South Australia that were short-listed for the scheme.

CORPORATES
APA GROUP – ASX APA, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Investment strike keeps growth low

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Original article by Glenda Korporaal
The Australian – Page: 17 & 27 : 5-Dec-19

Commonwealth Bank economist Michael Blythe says the latest GDP data shows that Australia has a two-speed economy, with private sector spending down 0.1 per cent in the September quarter and 0.3 per cent year-on-year, while public sector spending increased by 1.1 per cent and 4.8 per cent respectively. Master Builders Australia has urged the federal government to fast-track smaller infrastructure projects, with chief economist Shane Garrett noting that businesses and consumers lack the confidence to spend at present.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MASTER BUILDERS AUSTRALIA INCORPORATED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, WAGNERS HOLDING COMPANY LIMITED – ASX WGN