LEGISLATIVE BODIES – COMMITTEES

Labor says bank profits are too high

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Original article by Joanna Mather, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 2 : 27-Sep-16

The profits of Australia’s four major banks will come under scrutiny when their CEOs front a parliamentary committee in early October 2016. Pat Conroy, an Australian Labor Party member of the committee, will seek an explanation for the banks’ high return on equity compared with their international peers. He notes that there has not been an influx of foreign banks despite the local industry’s high level of profitability. Labor and the Greens favour a royal commission into the banking sector.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Media reform deadline looms

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Original article by Jake Mitchell
The Australian – Page: 19 : 22-Sep-16

The Senate inquiry into proposed cross-media ownership reforms is slated to report its findings on 7 November 2016. Media companies have been given until 23 September to update the submissions they made to a previous inquiry prior to the federal election. Meanwhile, the Opposition has signalled that its stance on abolition of the "two-of-three rule" has not changed following the retirement of Stephen Conroy, who supported retaining the regulation. The Australian Labor Party supports scrapping the "reach rule".

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. SENATE STANDING COMMITTEE ON ENVIRONMENT, COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, PRIME MEDIA GROUP LIMITED – ASX PRT, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, NATIONAL RUGBY LEAGUE, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, NATIONAL FOOTBALL LEAGUE, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, LIBERAL PARTY OF AUSTRALIA

Timing of bank inquiry will limit scrutiny: ALP

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Original article by Primrose Riordan
The Australian Financial Review – Page: 7 : 19-Sep-16

The Opposition has questioned the timing of a scheduled appearance by the "big four" bank CEOs before a parliamentary committee. They will front the inquiry in early October 2016, which coincides with both school holidays and a non-sitting week for Parliament. The Australian Labor Party also notes that it also covers the so-called "blackout period" for some of the banks, which will restrict the amount of information the CEOs can publicly disclose prior to the release of their financial results.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Bank chiefs to face three-hour grilling

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Original article by Fleur Anderson
The Australian Financial Review – Page: 3 : 16-Sep-16

The CEOs of Australia’s "big four" banks will front a parliamentary committee over three days in October 2016. Each CEO is slated to appear before the inquiry for three hours, under the Federal Government’s new policy of requiring banking industry leaders to front up to parliament once a year. However, the Opposition has criticised the timing of the CEOs’ parliamentary testimony, given that it will be during school holidays and in a week when parliament is not sitting.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, RESERVE BANK OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY

News, Fairfax, Nine, Ten called to Senate inquiry

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Original article by Dominic White
The Australian Financial Review – Page: 29 : 11-Apr-16

The CEOs of some of Australia’s largest media groups have been asked to appear before the Senate’s environment and communications legislation committee on 29 April 2016. The committee is holding an inquiry into the Federal Government’s proposed changes to cross-media ownership laws, but it is not scheduled to report its findings until 12 May. The Government must call an election no later than 11 May if it is to be held in July.

CORPORATES
AUSTRALIA. SENATE STANDING COMMITTEE ON ENVIRONMENT, COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN WEST MEDIA LIMITED – ASX SWM, FOXTEL MANAGEMENT PTY LTD

Don’t touch negative gearing, MPs warned

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Feb-16

The Property Council of Australia stresses the importance of negative gearing for housing. It will argue in a submission to the joint standing committee on economics’ inquiry into tax deductibility that negative gearing should be retained in its current form. The Property Council has warned that it could mobilise negatively geared voters in marginal seats to persuade politicians to leave negative gearing unchanged.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY

7-Eleven franchisees chose own pay rates

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Original article by Adele Ferguson, Sarah Danckert, Mikaela Day
The Australian Financial Review – Page: 23 : 25-Sep-15

Key executives of 7-Eleven Stores appeared before a Senate hearing on 24 September 2015. CEO Warren Wilmot revealed that until a few years ago franchisees had been able to pay staff what they deemed appropriate without reference to the minimum wage. He stressed that this system is no longer in place. Meanwhile, 7-Eleven executive Natalie Dalbo said there has been a 16 per cent increase in the wages paid to employees of 536 stores that use the group’s centralised payroll system since a media expose on the wage scandal.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN

7-Eleven was warned over worker fraud

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Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 25 : 24-Sep-15

Consumer advocate Michael Fraser has revealed in a submission to a Senate inquiry into wage exploitation at 7-Eleven that he first warned the convenience store group of the scandal in late 2012. Meanwhile, Stewart Levitt, the principal of law firm Levitt Robinson, has used his submission to urge the Federal Government to hold 7-Eleven’s Melbourne head office accountable for the scandal, rather than franchisees. He says the Government should provide an amnesty for 7-Eleven workers who are on student visas.

CORPORATES
7-ELEVEN STORES PTY LTD, LEVITT ROBINSON, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, MAURICE BLACKBURN PTY LTD, AUSTRALIA. FAIR WORK COMMISSION

Aldi in great shape for Coles, Woolies battle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 & 14 : 14-Jul-15

Woolworths continues to have the highest pre-tax profit margin among Australian grocery retailers, at 7.1 per cent. However, Aldi boasted a profit margin of 5.2 per cent in 2013, according to its submission to a Senate tax inquiry. This compares with a profit margin of just 4.3 per cent for Coles. Craig Woolford of Citigroup believes that Aldi will gain more market share at the expense of its two main rivals, while Craig Young of Nikko Asset Management doubts that Aldi will pursue a grocery price war.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, NIKKO ASSET MANAGEMENT GROUP, DEUTSCHE BANK AG, WESFARMERS LIMITED – ASX WES, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

IOOF pays out compensation to 57 clients

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 14 : 7-Jul-15

IOOF CEO Chris Kelaher will appear before a Senate committee on 7 July 2015 to answer questions over allegations of misconduct at the financial services group. Meanwhile, IOOF has indicated that 57 clients have been paid a total of $A2.8m in compensation since mid-2013, after lodging complaints about its financial planners. A number of IOOF’s authorised financial planners have also been banned from working in the sector during the last decade.

CORPORATES
IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIAN WEALTH MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CONSULTUM FINANCIAL ADVISERS PTY LTD, MFS PREMIUM INCOME FUND, MY ADVISER PTY LTD, BRIDGES FINANCIAL SERVICES PTY LTD, PLAN B FINANCIAL SERVICES LIMITED, LONSDALE FINANCIAL GROUP LIMITED, ORD MINNETT GROUP LIMITED, THE WEALTH MANAGERS