IN RESPONSE to the Productivity Commission report Superannuation: Assessing Efficiency and Competitiveness, the Institute of Public Accountants (IPA) has referred to its earlier views made in a submission by the IPA Deakin SME Research Centre, which reinforced the 2014 Financial Services Inquiry proposed objective that superannuation is intended ‘to provide income in retirement to substitute or supplement the Age Pension’.

“Acknowledging the purpose of the superannuation system, we need to continue the process of crafting and shaping the potential forms of the Retirement Income Covenant,” IPA chief executive officer, Andrew Conway said.

“An important part of this work includes clarifying the fiduciary relationship between trustees and the members of a retirement fund.

“Australia has $2.61 trillion in managed superfunds and this underlines the significant role that the fund trustee plays.

“Considering the interim findings of the Hayne Royal Commission, the Productivity Commission superannuation report and other inquiries, the role and accountability of trustees must be reinforced.

“Australia needs a framework which acknowledges significant funds being invested, varying levels of expertise and knowledge of trustees, along with their reliance on external experts, to provide further guidance in the Covenant to clarify the obligations of trustees.

“The IPA strongly supports the high level guidance of a Comprehensive Income Product for Retirement (CIPR) to ensure fund members have efficient and constant income, longevity risk management and some access to capital.

“However, CIPR is not appropriate for all; for example, where illness leads to shorter life expectancy or a lower super balance.

“The IPA also supports Retirement Income Covenant principles that encompass the development and existence of a retirement income strategy and facilitating engagement of fund members with decision making on their own retirement.

“Higher levels of financial literacy would also lead to higher levels of fund member engagement as recommended by the Productivity Commission; a recommendation, we strongly support,” Mr Conway said.

publicaccountants.org.au

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QUEENSLAND'S coal industry has yet again demonstrated its critical importance to the State’s economy delivering record exports over the year to December 2018, according to the Queensland Resources Council (QRC).
 
QRC chief executive Ian Macfarlane said new data from Queensland’s ports revealed total coal exports of 223 million tonnes (mt) surpassing the last record by 2 mt set in 2016.
 
“Countries around the world are using our metallurgical coal to make steel needed for building modern cities and our high quality thermal coal is delivering tomorrow’s energy needs through high efficiency, low emission coal-fired power plants,” Mr Macfarlane said.
 
“Green activists continue to claim the world is turning away from coal but the data proves it’s an essential ingredient for the world economy to grow. 
 
“Queensland coal was exported to 30 different countries or territories – Argentina, Brazil, Chile, China, England, Finland, France, Germany, Hong Kong, India, Indonesia, Italy, Gibraltar, Japan, Malaysia, Netherlands, Philippines, Poland, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, Vietnam and Wales.                                                                                 
 
“This record can only be achieved through the hard work and world-class standards set by the 215,000 Queenslanders who work in or with the coal industry," Mr Macfarlane said.
 
“According to the International Energy Agency (IEA) Australia’s net exports of coal is forecast to increase by 20 percent by 2040 while the Office of the Chief Economist said Australia’s coal earnings are on target to generate more than $67 billion in 2018–19 making it Australia’s largest commodity export." 
 
In addition, Queensland LNG from the Port of Gladstone recently set a new export record of 20.58 million tonnes (mt) in 2018.

“Every tonne of coal and all resources exported brings in royalty taxes, which help pay for Queenslanders’ roads, schools and hospitals, and pay for the teachers that educate our children, the nurses and doctors who look after our health and the police force that keeps us safe,” Mr Macfarlane said.

QRC’s current economic data shows the coal industry contributed $43.4 billion to the State’s economy in 2017/18 and invested $13.1 billion with local businesses and community organisations. 

Port breakdown 

Port of Brisbane (Queensland Bulk Handling)     7.1
Abbot Point Coal Terminal     29.8
Hay Point Coal Terminal     48.9
Dalrymple Bay Coal Terminal     69.5
Port of Gladstone (RG Tanna & WICET)     67.9
TOTAL     223.2mt

www.qrc.org.au

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THE Maritime Union of Australia (MUA) has accused large multinational companies BHP and BlueScope Steel of using the January holiday period to quietly sack nearly 80 Australian seafarers and replace them with $2-an-hour exploited foreign labour on the Australian coast.

MUA national secretary Paddy Crumlin said the union has been informed that the MV Mariloula and MV Lowlands Brilliance would be dumped immediately – the last remaining Australian ships that have serviced BHP and subsequently Bluescope steelworks in this country for more than 100 years.

“This is a national disgrace,” Mr Crumlin said. “Many, many Australians have known someone who worked on the famous fleet of BHP iron boats, yet the company wants to end more than 100 years of proud trade by sending a couple of sneaky emails in early January.

“One in eight merchant seafarers died defending this country in two world wars and their legacy deserves a lot more than this treacherous, underhanded attempt to dump Australian workers ahead of a federal election.”

Mr Crumlin said the two vessels move iron ore from BHP’s mining operations in Port Hedland to BlueScope’s steelworks in Port Kembla, then run coal to China before returning to Port Hedland and qualify as cabotage trade.

The union has written to the company demanding answers.

“It is with great surprise and regret we received notice from BHP informing the impending removal of the MV Mariloula and MV Lowlands Brilliance from freight services contracted to BlueScope and consequently, their removal from Australian coastal and international trade,” the correspondence said.

“The decision has the potential to devastatingly affect Australian seafarers and will see BlueScope’s supply chain effectively removing Australia labour from the local Australian industry, being replaced by highly exploited foreign crews paid as low as $2 per hour.”

Mr Crumlin said the MUA remains deeply concerned with BlueScope’s lack of consultation and discussion prior to the announcement by BHP, as well as the fact BlueScope is planning to shut down a trade that has run successfully for more than 100 years when alternatives are available.

“The union understands there to be considerable availability of Cape Size Bulk vessels suitable for the BlueScope freight task currently performed by the MV Mariloula and MV Lowlands Brilliance,” the letter said.

“We urge BlueScope to utilise Australian seafaring labour in its local supply chain. Australian seafarers have serviced BHP and subsequently Bluescope steel works in this country for more than 100 years.”

Mr Crumlin said the MUA had historically worked constructively with both BHP and Bluescope to meet cabotage requirement, including pay freezes during periods of economic downturn.

“This contribution to the company by Australian seafarers deserves ongoing certainty of their employment in BlueScope’s shipping supply chain. We note that during the period of wage freeze by workers including seafarers the Company made a $1.6 billion profit,” the letter said.

Mr Crumlin said the move was particularly galling given the current shipping arrangements do not expire between BHP and Bluescope until June this year and that his brief discussions with company management had shed no light on the reasons behind the decision.

The MUA is now requesting a meeting with BlueScope, BHP, maritime unions and the AWU to ascertain the real facts behind BHP’s decision to dump current shipping arrangements and to further discuss what will occur between now and June.

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THE Australian Retailers Association (ARA) said the November trade figures released today by the Australian Bureau of Statistics (ABS) reflect a sluggish preview for the Christmas trading period, with 2.76 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said while these figures were slightly less than the ARA and Roy Morgan predicted, the ARA was still optimistic that the retail sector would reach the estimated $51 billion pre-Christmas sales figure, which should provide some relief to retailers as they welcome the new year.

"Our combined research with Roy Morgan forecasted a 2.9 percent increase in pre-Christmas sales, as we projected shoppers to spend $51 billion from retail stores across the country from November 9 to December 26, 2018,” Mr Zimmerman said.

“According to the November figures released today by the ABS, the Apparel and Footwear category recognised substantial growth with an impressive 5.87 percent year-on-year lift, with consumers purchasing outfits for upcoming festivities and the warmer summer months ahead.”

Department stores also posted a welcome 1.63 percent year-on-year growth, while the Other retailing/online category was saw a weaker-than-anticipated at 4.68 percent year-on-year.

“Sales events in the month of November certainly contributed to a steady lead-in to the festive season, particularly for department stores and online retailing,” Mr Zimmerman said. 

The overall Food category exhibited a conservative 1.25 percent year-on-year growth, while Supermarkets remained strong with 4.50 percent year-on-year growth, and specialised food saw a 3.84 percent increase. 

“As expected, the Specialised Food and Supermarket categories received a slight increase, with many shoppers across the nation preparing their tables for Christmas Day,” Mr Zimmerman said.

“However, some of this increase must be attributed to a reduction in supply of fresh produce due to weather events, especially the ongoing drought, which has driven prices of fruits, vegetables and meat upwards.”

South Australia (0.93%) and Western Australia (0.30%) remained stable, with the Northern Territory (-1.76%) receiving a negative result in November. 

“Although Victoria has led the charge in sales across the country for most of 2018, the Australian Capital Territory (ACT), surpassed the nation in November with a stellar 5.52 percent year-on-year growth,” Mr Zimmerman said. 

“Western Australia (WA) has noted an impressive three consecutive months of year-on-year growth, and we are seeing some cautious, yet promising signs of a rebound after experiencing a sluggish two years of retail trade.”

Mr Zimmerman said although today’s figures profess a muted lead-in to Christmas, the ARA are confident that the industry will show its stripes when the December trade figures are released in February. 

“Based on what we have seen and heard from retailers and our members, we believe the overall Christmas trade will indicate secure growth, with many large retailers noticing growth in-store,” Mr Zimmerman said. 

“The ARA will continue to partner with Roy Morgan to deliver the only professionally researched industry Christmas predictions in Australia, and we believe the figures released today represent an accurate preview of sales in the lead-up to the festive season.” 

Monthly Retail Growth (October 2018 – November 2018 seasonally adjusted) 

Clothing, footwear and personal accessory retailing (1.52%), Household goods retailing (1.24%), Food retailing (0.23%), Department stores (0.43%) Cafés, restaurants and takeaway food services (-0.08%) and Other retailing (-0.11%).

Australian Capital Territory (1.63%), New South Wales (0.76%), Victoria (0.63%), Western Australia (0.56%), Queensland (0.43%), South Australia (-0.02%),Tasmania (-0.24%) and Northern Territory (-0.92%).

Total sales (0.42%).

Year-on-Year Retail Growth (November 2017 – November 2018 seasonally adjusted)

Clothing, footwear and personal accessory retailing (5.87%), Food retailing (4.05%), Other retailing (2.71%), Department stores(1.63%), Cafés, restaurants and takeaway food services (1.25%) and Household goods retailing (0.11%).

Australian Capital Territory (5.52%), Victoria (4.58%), Queensland (3.67%), Tasmania (3.01%), New South Wales (1.92%), South Australia (0.93%), Western Australia (0.30%) and Northern Territory (-1.76%).

Total sales (2.76%). 


About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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