THE LATEST forecasts for the housing market were released by Master Builders Australia today. 

Chief economist Shane Garrett pointed to a challenging year ahead saying, “New home building across Australia is facing into its toughest year in almost a decade with declining house prices and the fallout from the Royal Commission really starting to bite.

“About 234,000 new homes were started at the peak of the market in 2016/17. We anticipate that output will decline to 210,200 during 2018/19 overall and fall to 197,500 during 2019/20.

"A succession of further declines will bring new home starts down to 175,900 by 2022/23,” Mr Garrett said. 

“New home building was lifted to record levels in the middle of the decade by a combination of strong population growth, big house price gains, super low interest rates and keen demand from foreign buyers,” he said. 

“Several of the ingredients that made up this favourable mix are no longer in place. House prices have seen sizeable reductions in a number of key markets, while state governments have erected prohibitive barriers to foreign buyers. 

“Reaction to the Hayne Royal Commission has slowed the circulation of mortgage credit within the housing market and this is the biggest factor holding activity back at the moment. Uncertainty in the lead up to the upcoming Federal Election is also delaying activity in the market. People want to know what the colour of housing policy will look like before they enter into commitments,” he said. 

“The fundamentals of the Australian economy are actually pretty solid at the moment with the robust labour market fuelling a healthy pace of migration-driven population growth.

"As a result the underlying demand for new home building is still elevated but unfortunately this is not being translated into stronger activity on the ground because of the credit crunch and decision paralysis ahead of the election,” Mr Garrett said. 

“It is vital that we get urgent clarity from all parties on exactly what they will do once the Federal Election has been concluded."

www.masterbuilders.com.au

ends

THE NATURE Conservancy Australia, in a joint venture with Tiverton Agriculture, has purchased the Juanbung and Boyong cattle stations in western NSW, along with the properties’ water rights, for $55 million.

The deal is the most valuable private conservation-focussed purchase in Australia’s history and will protect almost the entire extent of the Great Cumbung Swamp from conversion to irrigated cropping.

Uniquely located at the confluence of the Lachlan and Murrumbidgee rivers, the Great Cumbung is one of the largest and most important wetlands in the Murray-Darling Basin. It is home to 131 bird species and more than 200 plant species.

Announcing the purchase, TNC country director Rich Gilmore said, "Today, more than ever, we need science-based, pragmatic solutions that deliver benefits for people and nature. If we are to save the Basin’s rivers and the communities that depend on them, conservationists, irrigators and Governments must come together and act with courage, urgency and optimism.”  

In addition to wetland conservation and water recovery, the Great Cumbung will continue to support economic development and jobs in the Riverina. Tiverton will manage the property for the dual objectives of conservation and sustainable agriculture.

“We look forward to managing this outstanding property and exploring future sustainable land use options such as carbon, biodiversity offsets and stewardship, and ecotourism”, said Tiverton director, Nigel Sharp.

The Great Cumbung will be managed in conjunction with the 87,000-hectare Gayini Nimmie-Caira property, which was purchased for conservation by the NSW Government in 2012 and is now managed by TNC and Nari Nari Tribal Council.

Tribal Council chair Ian Woods said, "Nari Nari people are very supportive of the purchase and we look forward to working with TNC and Tiverton at the Great Cumbung and Gayini Nimmie-Caira." 

Some of Australia’s most respected investors and philanthropists are supporting TNC’s work in the Murray-Darling, including John B. Fairfax AO, The Ian Potter Foundation, the Besen family, and the Baillieu Myer family’s Yulgilbar Foundation.

Funding was also provided by the US-based Wyss Foundation and the Wyss Campaign for Nature. Debt finance was provided by ANZ in line with the bank’s aim to support business practices that improve environmental sustainability. TNC is seeking more financial support to undertake further protection of the Great Cumbung and other important wetlands.

Formal settlement on the property acquisitions will take place in mid-February 2019.

ends

THE House of Representatives Standing Committee on Economics will hold public hearings in Merimbula, Chatswood and Bondi Junction, New South Wales, for its inquiry into the implications of removing refundable franking credits.

Chair of the committee, Tim Wilson MP, said, "The committee is examining how the removal of refundable franking credits would affect investors, in particular older Australians who have planned for their retirement under the existing rules and whose financial security could be compromised."

"The committee has received well over 1000 submissions, including many from retires who are concerned they will be forced on to the aged pension if the ability to claim a refund on their franking credits is removed.

"These hearings will provide an opportunity for Australians impacted by a change to refundable franking credits to address the committee directly with a three minute statement, and we welcome their contributions and participation," Mr Wilson said.

Public hearing details:

Merimbula, 9am to 10.30am, Monday, 4 February 2019, Merimbula RSL, 52-54 Main St, Merimbula, NSW

Chatswood, 9am to 10.30am, Friday, 8 February 2019, The Chatswood Club, Level One, G11 Help Street, Chatswood, NSW

Bondi Junction, 2pm to 3.30pm, Friday, 8 February 2019, Bondi Junction RSL, 1/9 Gray St, Bondi Junction, NSW

Further public hearings will be announced as the inquiry progresses. The hearings will be webcast live (audio only).

A number of submissions have been received and are available on the committee’s webpage at: www.aph.gov.au/economics.

A number of submissions are currently being processed and will be published over the coming months. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

ends

THE International Transport Workers’ Federation (ITF) today expressed opposition to the decision of BHP to dump Australian crew from two vessels that carried iron ore from Port Hedland in Western Australia to steelworks in Port Kembla and to China.

The decision will see 80 Australian seafarers lose their jobs, ending more than 100 years of Australian-crewed iron ore shipping servicing BHP and BlueScope steelworks, to be replaced by foreign crew on Flag of Convenience (FoC) vessels.

“For over 100 years, Australian crew have serviced the iron ore trade between Port Hedland and Australia’s steel makers, BHP’s decision destroys one of the oldest national domestic shipping supply chains in Australia,” said ITF Seafarers’ section chair Dave Heindel.

“Seafarers aboard the MV Mariloula and MV Lowlands Brilliance have been discarded, left high and dry. It is disturbing that BHP has initiated this action six months before the expiry of the charter, with next to no notice to the unions. The ITF condemns the move and calls on BHP to reverse this decision,” he said.

The ITF strongly supports Australian cabotage arrangements and the right of Australians seafarers to work in the domestic trade employed under Australian conditions.

James Given, chair of the ITF’s cabotage task force said, “The ITF has consistently opposed the alarming use of legal loopholes to circumvent national legislation that is intended to secure the rights of Australian seafarers and their entitlements in Australia’s domestic shipping trade.

“Based on information we’ve received, BHP and BlueScope have had plans to remove Australian seafarers from these two vessels and operate with foreign crews well in advance of the notice that our Australian affiliates received.

“This neglect is unacceptable and not in line with BHP’s stated commitment to working with integrity and respect. The ITF and our maritime affiliates worldwide, strongly reject the company’s behaviour which seems orchestrated to avoid accountability in Australia,” he said.

BHP annually charters around 1,500 vessels, majority of which are FoC vessels, with some vessels not covered by ITF agreements leaving seafarers exposed to exploitation and abuse.

“As a leader in the global transport and logistics industry and a participant in the UN Global Compact initiative, there is an expectation that BHP sets positive trends and not promote a race to bottom for transport of BHP product in domestic and international trade,” said Mr Given.

“The ITF stands firmly beside our Australian affiliates and the seafarers on these vessels. We call on BHP to immediately meet with the unions to rectify the matter back to the status quo, and invite the company to work with the ITF to ensure protections for all seafarers in their global supply chain,” he said..

About the ITF

The International Transport Workers' Federation is a democratic global union federation of 670 transport workers trade unions representing over 20 million workers in 140 countries. The ITF works to improve the lives of transport workers globally, encouraging and organising international solidarity among its network of affiliates. The ITF represents the interests of transport workers' unions in bodies that take decisions affecting jobs, employment conditions or safety in the transport industry.

ends