THE Queensland Resources Council (QRC) has welcomed the Australian Government’s commitment to support new investment in critical minerals projects, which is a key growth area for Queensland’s resources sector.

QRC chief executive Ian Macfarlane said investments in critical minerals will become increasingly important as Queensland looks to play to its advantages in resources to create new jobs and support Australia’s national security.

“Queensland’s resources sector is an economic stronghold, underwriting the state economy to the tune of $84.3 billion and supporting more than 420,000 jobs,” Mr Macfarlane said.

“Investment in a range of commodities, including critical minerals, will also strengthen Australia’s energy security and self-sufficiency in areas as diverse as defence and the advanced manufacturing of renewables.”

The Australian Government has this week announced a new Critical Minerals Strategy, backed by a $200 million grants program, to accelerate prospective projects plus $50 million to support research and development.

The government also announced $243 million for investments in critical minerals manufacturing initiatives, including $45 million for a high purity alumina production facility near Gladstone to meet demand for lithium-ion batteries and LED lights.

“Queensland is fortunate to have diverse potential in critical and new economy minerals including vanadium, nickel, cobalt and scandium projects, which has been recognised by the State Government and is a key measure in the draft Queensland Resources Industry Development Plan,” Mr Macfarlane said.

“The QRC has previously welcomed the State Government’s investment in common user infrastructure to support the vanadium industry in North Queensland, and we believe more infrastructure like this is needed to drive further industry growth.

“The Queensland resources sector has proven to be a reliable partner for local communities over decades, and especially so during the COVID pandemic,” he said.

“Investments in our traditional commodity strengths as well as in the commodities of the future will help ensure the resources sector can continue to play that steady role to support Queensland jobs, our economy and our security.

“The QRC looks forward to working with the State and Federal Governments to maximise the return on investments in the critical and new economy minerals sector.”

www.qrc.org.au

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HESTA has reached a key milestone, with its in-house Australian Equities team actively investing as the $68 billion industry superannuation fund embarks on the next phase of its ambitious internalisation investment program.

Plans to bring its fixed interest and cash teams in-house are well underway, with HESTA targeting at least 15 percent of its portfolio being internally managed in the short-to-medium term.

HESTA CEO Debby Blakey said the fund’s hybrid strategy – which combines direct investment capability alongside leading external asset managers – aims to continue generating strong, competitive, long-term investment performance at a lower cost, directly benefitting members.

“This is an exciting and new chapter for our fund that builds on a track record of delivering outstanding investment performance for members," Ms Blakey said.

“Our internal asset management team will help bring us even closer to capital markets, giving us greater access to cutting-edge global investment thinking. This will help us continue to deliver strong, long-term returns and ensure members’ investments are well positioned for a dynamically changing world.”

HESTA CIO Sonya Sawtell-Rickson said the internalisation program aims to enhance investment thinking across the whole portfolio, as well as its responsible investment activities, with its internal Australian equities team to strengthen the fund’s established direct engagement program.

“Our HESTA impact program has a strong focus on identifying investment opportunities arising from long-term sustainability trends such as the transition to a low carbon future and the outperformance companies with strong, inclusive and diverse cultures can achieve," Ms Sawtell-Rickson said.

“We’re well placed to continue developing first-hand knowledge of company business models that can increase our ability to generate competitive, sustainable returns, while amplifying the positive impact we can have on behalf of members."

The internalisation program resulted in a new leadership structure with a number of key appointments made over the last two years including general m for growth assets Steven Semczyszyn, who joined in 2020, to lead the internal Australian Equities team. 

“Our senior leadership structure has been carefully designed to help deliver the overall investment program and portfolio strategy and is aimed at enhancing an innovative, leading investment team, with plans to support future growth in capability and capacity," Ms Sawtell-Rickson said.

The fund has further invested in its systems and data, including the implementation of a whole-of-fund portfolio management system which can be leveraged for internalisation across asset classes.

“We’re bringing in some of the best and brightest minds to help manage a growing and significant pool of assets. Over the next two years we plan to have half of the active Australian Equities money managed in-house," Ms Sawtell-Rickson said.

Recruitment of the fund’s fixed interest and cash teams is well underway and expected to be fully operational by late 2022.

“We’re continuing to build capability across a range of asset classes that will allow us to keep delivering outstanding results for members,” Ms Sawtell-Rickson said.

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THE House of Representatives Standing Committee on Economics today tabled a report on the implications of common ownership and capital concentration in Australia.

Committee chair Jason Falinski said, "The magic source of free markets is competition. It is the element above all else that promotes and provokes innovation, invention and delight in customers. There is a misconception that free markets are efficient, but this is less than half the story, what they are really good at is being dynamic, and competition is the key to that dynamism.

"The problem is that as capital markets become more concentrated, especially in Australia, that owners of capital have conflicting interests with consumers. There is an emerging field of study that is providing compelling evidence that concentrated capital is driving out competition."

Capital concentration can occur when large institutional investors dominate equity markets and influence how firms behave in the marketplace. Common ownership refers to a situation in which an investor simultaneously owns shares in competing firms.

"If financial markets are dominated by a small number of large investors, or if the same investor owns a significant stake in competing businesses, the evidence is piling up that competition suffers," Mr Falinski said. "That can lead to higher prices, lower quality goods and services, and lower relative wages — all of which are serious concerns.

"Further, the concerns of capital are not necessarily the same as the concerns of people, it is not just as consumers that we suffer, but also as employees, investors, voters, citizens and human beings."

The committee has recommended that measures be introduced to increase transparency in respect of the holdings and behaviours of institutional investors. The report also calls for Australia’s financial regulators to actively monitor capital concentration and common ownership.

Mr Falinski said, "This is an emerging issue, and some of the world’s top economic thinkers supported the committee in its inquiry. By taking steps now to empower our regulators to be proactive in monitoring and potentially responding to these phenomena, we can avoid having to deal with a larger issue in the future."

A full copy of the committee’s report is available on the committee’s website.

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) will hear evidence from critical industries and government agencies on proposed new laws to protect Australia’s infrastructure from sophisticated cyber attacks.

The Security Legislation Amendment (Critical Infrastructure Protection) Bill 2022 addresses outstanding elements of new cyber laws passed by the Parliament last year, as recommended by the PJCIS in its Advisory report on the Security Legislation Amendment (Critical Infrastructure) Bill 2020 and Statutory Review of the Security of Critical Infrastructure Act 2018.

The committee will hear from witnesses representing a range of industry sectors including: IT, telecommunications, education, health care, logistics, energy, utilities, and key union groups. The committee will also hear from key government agencies, such as the Australian Signals Directorate and the Department of Home Affairs.

"Australia’s security outlook has never been more uncertain, and so it’s critical that government and industry are working hand in glove to identify and counter sophisticated cyber attacks," PJCIS Chair Senator James Paterson said.

 "The second tranche of cyber laws aims to achieve just that, and I look forward to hearing from the government and private sector alike to ensure a unified response to threats against our nation," Senator Paterson said.

Further information on the inquiry can be obtained from the committee’s website.

Public hearing details

Wednesday, 16 March 2022
​10am – 5pm (AEDT)
​Committee Room 2S1, Parliament House, Canberra

A program for the hearing is available online and the hearing will be broadcast live at aph.gov.au/live.

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