INDUSTRY superannuation fund First Super welcomed the decision by the Australian Council of Superannuation investors (ACSI) to formally recommend investors in AMP vote against the re-election of directors at the upcoming AMP AGM.

Commenting on the decision, First Super CEO Bill Watson urged other institutional investors to also follow the ACSI voting recommendation.

“We call on other superannuation funds, fund managers and proxy advisers to follow the lead of ACSI and send a message to the industry that the types of practices perpetrated by AMP and recently uncovered by the Royal Commission are unacceptable," Mr Watson said.

“First Super will vote its shares against the re-election of the three directors and calls on the rest of the board to seriously consider their individual and collective positions.”

Mr Watson said it was imperative the AMP board investigate and action how to recover bonuses paid to executives who presided over and permitted practices for which the board has now acknowledged and apologised for.

“The actions of AMP management and the atrocious governance failings that have recently come to light has had real world consequences for millions of hard working Australians. Shareholder value has been destroyed with the share price down 20 percent in the last month," he said.

“News today that the Counsel Assisting the Royal Commission submitting that is open to the Royal Commission to recommend criminal charges against AMP is yet another indication of distressing and unsustainable problems at that firm. 

“From an investor perspective the situation is profoundly disappointing and we need to see some accountability and reckoning.”

www.firstsuper.com.au

ends

THE Australian Prudential Regulation Authority’s (APRA) plan to remove the investor lending benchmark and replace it with better practices and strengthened lending standards should be treated with some caution, according to the Institute of Public Accountants (IPA).

“The removal of the current investor lending benchmark may be good for individuals and small business but on a macro level, the onus on authorised deposit-taking institutions (ADIs) should be considered with caution,” said IPA chief executive officer, Andrew Conway.

APRA is seeking assurances from ADI Boards that ‘they will maintain a firm grip on the prudence of both policies and practices’.

“Given the findings of the Hayne Royal Commission which continue to emerge, the IPA has some reservations about the ability of certain ADI Boards to control or oversee the activities of ADIs; and the commitment of certain ADIs to strengthening some practices in line with prudent policies.

“We agree that not all ADIs should be tarred with the same brush, but we remain cautious just the same.

“The IPA continues to stress that borrowers need to be prudent as well. They need to be responsible borrowers and not just rely on responsible lending practices of banks and other ADIs.

“If a loan was not appropriate or serviceable before, then it won’t be appropriate or serviceable now, just because APRA is removing the benchmark.

“The IPA welcomes the intention of replacing the benchmark with higher, permanent standards, even though work still needs to be done by ADIs.

“The need for financial and business literacy is paramount for all small businesses when seeking to borrow and enter into any financial arrangement; this is where they should engage a public accountant to assist.

“The need for financial literacy was a feature of the commentary we received throughout our national small business roadshow last year.

“Currently we are developing the second edition of the Australian Small Business White Paper through the IPA Deakin SME Research Centre which looks at access to finance for small business, and borrowing from ADIs is just one avenue.  We also encourage risk-adjusted lending and other innovative policies,” said Mr Conway.

www.publicaccountants.org.au

ends

SAFE Work Australia Chief Executive Officer, Michelle Baxter, says the death of fourteen young people in work-related incidents is too many and urges leaders to educate young workers about work health and safety (WHS).

World Day for Safety and Health at Work and Workers’ Memorial Day (Saturday 28th April) is a time to focus on work health and safety, and to honour the memory of those who have died from a work-related injury or illness.

“Fourteen young workers* were killed in work-related incidents in 2016, which is fourteen workers too many,” said Ms Baxter.

“Young workers have an increased risk of workplace injury due to lack of experience, maturity and awareness of WHS responsibilities, so we must focus on building safe and healthy workplaces for this vulnerable group.

“I can’t overstate the important role of employers, employees and business leaders in educating young workers about their WHS rights and responsibilities, providing the right tools and in ensuring they feel empowered to speak up about safety and health.

“Our young workers’ web page, launched for World Day, provides easy access to resources and toolkits to help both young workers and their employers create safe and healthy workplaces,” said Ms Baxter.

To access the young workers’ web page and find out how you and your workplace can get involved in World Day, visit safeworkaustralia.gov.au/worldday

*(aged 15 to 24 years)

ends

RESOURCE SECTOR regions are enjoying strong jobs growth over the last 12 months, according to data released today, Queensland Resources Council Chief Executive Ian Macfarlane said.

Mr Macfarlane said data from the Australian Bureau of Statistics today showed that over the last 12 months, the Mackay region had added 4500 extra jobs, an increase of 4.8 percent; the Darling Downs-Maranoa had added 2100 jobs, an increase of 3.4 percent; outback Queensland, which includes the North West Minerals Province, had added 1200 jobs, an increase of 3.9 percent; and the Fitzroy region had added 400 jobs or a 0.4 percent increase.

“Last financial year, the Queensland resources industry added almost 5000 new full-time equivalent jobs in Queensland to more than 38,150 direct jobs. The industry supports a total of 282,634 jobs – the equivalent of one in every eight Queensland jobs,” he said.

“Today’s jobs data comes as Santos announces the completion of a major project in the Bowen Basin – in the Darling Downs-Maranoa region– to expand its Scotia compression plant and field from 23 to more than 100 wells. The project delivered by more than 400 workers will boost gas supply to the Santos GLNG project, supporting jobs in local industry by increasing east coast domestic gas supplies as well as those jobs from exporting LNG.

“There are more jobs and more optimism in the resources sector, and stable policy with continued access to resource, will underpin new investment, new opportunities and new jobs for Queenslanders.”

As Queensland Minister for Employment Shannon Fentiman said earlier this month: “It’s pleasing to see the fast-growing resource sector is providing more jobs for the regions. Since the Palaszczuk Government was elected we have worked with business and industry to create more than 160,300 new jobs in Queensland.”

The Queensland resources sector now provides one in every $6 in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State – with almost 7000 businesses in the Greater Brisbane region – all from 0.1 percent of Queensland’s land mass.

Link to Santos announcement on Scotia project 

Link to Natural Resources, Mines and Energy Minister Dr Anthony Lynham statement on Scotia project 

ends