Australia ‘must deal with quite spectacular housing bubble’

Original article by David Rogers
The Australian – Page: 28 : 1-Jun-17

A sharp downturn in the residential property market and an economic slowdown in China are among the biggest risks to the Australian economy, according to Willem Buiter of Citigroup. The investment bank’s global chief economist warns that the Federal Government’s plans to invest $A75bn in infrastructure over 10 years will not be sufficient to offset the impact of a property market downturn. He says the Government must take action to ensure that the housing market has a soft landing.

CORPORATES
CITIGROUP INCORPORATED, THE GOLDMAN SACHS GROUP INCORPORATED, LONDON SCHOOL OF ECONOMICS, BANK OF ENGLAND, WORLD BANK, EUROPEAN COMMISSION, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Badgerys airport plan: build, operate and sell

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 3-May-17

The Australian Government’s May 2017 Budget will include funding for the proposed Western Sydney Airport at Badgerys Creek, which is slated to cost between $A5bn and $A6bn. The Government has also signalled that it will seek a buyer for the new airport after it becomes operational. Prime Minister Malcolm Turnbull has emphasised the airport’s contribution to the economy and growth in jobs. Australian-listed Sydney Airport has ruled out developing the airport, citing the high level of risk associated with the project.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SYDNEY AIRPORT – ASX SYD, KINGSFORD SMITH AIRPORT, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF FINANCE, NBN CO LIMITED

Budget debt will finance airport, rail

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Apr-17

Prime Minister Malcolm Turnbull has identified the proposed inland rail link between Melbourne and Brisbane as a "very high priority". He has also given indications that the rail link and Sydney’s second airport will be at least partially funded by the government via "good" debt. The May 2017 Budget will make a distinction between "good" and "bad" debt. Treasurer Scott Morrison notes that while the former generates income that can be used to repay debt, the latter is still needed to provide essential services.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, NBN CO LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, SYDNEY AIRPORT – ASX SYD

Turnbull turns up heat on Shorten over Adani loan

Original article by Joe Kelly
The Australian – Page: 2 : 13-Apr-17

Opposition Leader Bill Shorten still opposes granting Adani a concessional loan from the Northern Australian Infrastructure Facility to build a rail line associated with its Carmichael coal project. He notes that Prime Minister Malcolm Turnbull indicated in 2016 that the project would not receive financial support from taxpayers. Resources Minister Matt Canavan has also criticised Labor counterpart Jason Clare for claiming that Adani would have exclusive access to the rail line. Canavan says that several other coal miners would benefit from the rail line.

CORPORATES
ADANI ENTERPRISES LIMITED, ADANI MINING PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY, AUSTRALIAN LABOR PARTY, HANCOCK PROSPECTING PTY LTD, GVK INDUSTRIES LIMITED, WARATAH COAL PTY LTD, MACMINES AUSTASIA PTY LTD, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

PM’s ticket to deliver fast train

Original article by Sarah Martin
The Australian – Page: 1& 4 : 11-Apr-16

The Australian Government will reveal a new infrastructure and cities policy in the lead-up to the May 2016 Budget. It will propose linking Sydney and Melbourne to regional cities via high-speed rail services, in order to promote population growth in regional areas and curb the growth of capital cities. The Government also wants to eventually develop a Melbourne-Brisbane high-speed rail link. It will also examine alternatives to taxpayer funds for financing infrastructure projects, including so-called "value capture" financing.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT

Infrastructure financial backing falls by $16b

Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 8-Feb-16

The "asset recycling program" that was announced in the Australian Government’s May 2014 Budget was expected to generate $A126.3bn worth of infrastructure investment by the states and the private sector. However, new figures show that this estimate has been scaled back to $A110bn. The Federal Government’s original proposal to invest $A50bn on infrastructure projects has in turn been reduced by $A1.4bn.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT

PM explores radical road, rail funding

Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 12-Oct-15

Prime Minister Malcolm Turnbull has signalled that the Australian Government is open to "innovative" options for funding infrastructure projects. These are believed to include capitalising on rising property values by channelling a proportion of revenue from land taxes into securities that would be sold to investors. The Australian Labor Party recently revealed plans to establish a $A10bn fund to finance infrastructure projects.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, INFRASTRUCTURE AUSTRALIA, CURTIN UNIVERSITY OF TECHNOLOGY, AUSTRALIAN GREENS

State’s letter guaranteed $1.2b

Original article by Lucille Keen, Ben Potter
The Australian Financial Review – Page: 10 : 20-Mar-15

Victorian Treasurer Tim Pallas says the previous state government signed a letter that was prepared by the Lend Lease-led East West Connect consortium. The letter contains a guarantee to pay more than $A1.2 billion in compensation to the consortium if the project is cancelled. Pallas accused the previous government of being too close to business. The State Government is trying to avoid paying $A1.2 billion in compensation for cancelling the toll-road project

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, EAST WEST CONNECT PTY LTD, VICTORIA. LINKING MELBOURNE AUTHORITY, LEND LEASE GROUP LIMITED – ASX LLC, CLAYTON UTZ, ECOMOUV SAS

Private sector will lead the way: Birrell

Original article by Annabel Hepworth, Andrew White
The Australian – Page: 6 : 17-Nov-14

The creation of a new global infrastructure hub is one of the key results of the Group of 20 leaders’ summit held in Brisbane on 15-16 November 2014. Mark Birrell, chair of the Federal Government’s Infrastructure Australia body, has welcomed the news and pledged his full support for the initiative. Similar comments have come from WestConnex Delivery Authority chair Tony Shepherd and IFM Invest­ors CEO Brett Himbury

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GROUP OF TWENTY (G-20), INFRASTRUCTURE AUSTRALIA, NEW SOUTH WALES. WESTCONNEX DELIVERY AUTHORITY, IFM INVESTORS PTY LTD, WORLD BANK, BUSINESS 20 (B20)

Infrastructure needed ‘to pick up slack’

Original article by Glenda Korporaal, Annabel Hepworth
The Australian – Page: 17 : 20-Oct-14

An Australian Institute of Company Directors forum has heard from Kevin McCann, chair of investment banking firm Macquarie Group. He said the national economy was likely to remain subdued, and there was an urgent need for major infrastructure projects by governments to provide a stimulus as capital expenditure in sectors other than energy declines. Such an approach has already been promised by the Federal Government, and will be promoted by it at the Group of 20 (G20) leaders’ summit in November 2014

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, GROUP OF TWENTY (G-20), UNITED STATES. FEDERAL RESERVE BOARD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, COCHLEAR LIMITED – ASX COH, RESERVE BANK OF AUSTRALIA