THE Queensland resources sector is powering the state’s economy, adding more than a billion dollars in value a week and now accounting for one in seven jobs, according to updated Queensland Resources Council (QRC) economic data.

The resources sector now supports 372,561 direct and indirect jobs, and in 2018-19 it added $74.3 billion to the Queensland economy. The new figures will be part of the QRC’s annual economic contribution launch in Brisbane today, attended by Prime Minister Scott Morrison.

QRC chief executive Ian Macfarlane said the figures showed the resources sector is delivering long-term benefits for all Queenslanders.

“Queensland’s resources sector is now supporting one in every seven jobs, and one in every five dollars for Queensland’s economy,” Mr Macfarlane said.

“That means from Burleigh Heads to Brisbane and from Mackay to Mount Isa, the resources sector is powering local economies and employing local people.

“The strength of the sector is driven primarily by coal, which is worth a billion dollars a week to Queensland, or $52.5 billion over the year. The coal industry directly employs 34,667 Queenslanders and supports another 226,887 indirect jobs.

“This year’s figures are up substantially on last year, with both overall jobs and total value added growing by 18 percent," Mr Macfarlane said.

“Over the last ten years the resources sector has added an extraordinary $668 billion to the Queensland economy, reflecting the world-class reputation of our sector and the hard work of Queenslanders.

“The numbers are on a global scale, but the benefits are local.

“With one in seven Queenslanders working in or with the resources sector, just about every Queensland family has a connection to mining and the resources sector.

“The resources sector is diverse and growing for the future.

"While the resurgent coal price has delivered a budget benefit for Queenslanders, there is significant growth in the metals category, such as copper, zinc and bauxite, which is up 26 percent this year and is now worth $11.7 billion to the state’s economy. There are strong prospects for even greater returns and more jobs as Queensland’s world-class North West Minerals Province is developed.

“The resources sector has always been proud to be part of what makes Queensland great. But it is about more than just the budget bottom line.

“Brisbane is still Queensland’s biggest mining town, with 134,327 jobs and $28 billion in value, with Mackay and Gladstone the next biggest regions.

“We proudly support regional communities by providing extra economic value for farmers during drought, and earlier this year the resources sector answered the call for help as floods hit North Queensland.

“The economic data shows the resources sector supported almost 14,500 businesses and 1,395 community organisations over the last year.

“The resources sector will continue to be a long-term partner for both rural and regional Queensland and the South East to deliver ongoing investment and jobs in the decades ahead.”

www.qrc.org.au

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THE Insurance Council of Australia Board (ICA Board) today approved a new General Insurance Code of Practice (Code) after one of the most extensive reviews in the Code’s 25-year history.

The Code sets out standards that are above and beyond legal requirements and aims to meet and anticipate consumer expectations. It has been comprehensively updated and rewritten to further enhance the rights and expectations that insurance customers can have about their relationship with their insurer.

The Code will be formally launched in early 2020. ICA members and other Code participants will start to transition to it from January 1, 2020, with all Code signatories to be compliant by January 1, 2021. All Code signatories will also be required to introduce and implement a publicly available policy to support customers affected by family violence by July 1, 2020.

ICA Board President Richard Enthoven said, "The new Code provides a significant improvement to consumer outcomes in their dealings with insurers, their distributors and their service providers.

“We now have provisions for customers experiencing vulnerability, including a requirement for signatories to have a policy to support people affected by family violence and provisions for customers who are experiencing mental health conditions.  

“The insurance industry has enhanced its financial hardship provisions. The Code also provides enhanced sanction powers to the independent Code Governance Committee for breaches of the Code, and includes a community benefit payment by insurers that commit significant breaches.”

Mr Enthoven said the ICA Board believed the new Code would set the benchmark for self-regulation in Australia and would help the insurance sector strengthen its reputation and relationship with customers, consumer advocates, regulators and governments.

“The new Code of Practice is the result of more than 2½ years of consultation and development,” he said.

“It has been one of the most thorough and wide-reaching reviews and revisions of the Code ever undertaken since the first Code was developed in 1994.

“Though the review process started well before the announcement of the Financial Services Royal Commission, the Code reflects Royal Commission recommendations alongside the Code Review Final Report and reports from a range of stakeholders.

“The ICA Board appreciates the expertise, input and guidance provided by many stakeholders including ICA member companies, the industry’s National Code Committee, consumer representative organisations, the Australian Securities and Investments Commission, legal aid services, the Australian Financial Complaints Authority, the Code Governance Committee and members of the community.”

The new Code will be publicly available from January 2020.

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THE THREE major professional accounting bodies – CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ) and the Institute of Public Accountants (IPA) – have joined forces to review the frameworks that regulate how financial and tax advice is provided in Australia.

CPA Australia, CA ANZ and IPA have released a video in which the CEOs of the three bodies call for more efficient regulatory frameworks for advisory services and pledge to work together in advocating for change.

CEO of CA ANZ Rick Ellis said, "The bodies were working together on a broader and more robust solution to the complexity of the current regulatory framework that will enable both businesses and Australians to not only access the advice they need but understand that advice.

“The failures that were revealed from the Banking Royal Commission brought to light the extreme complexity of the current frameworks in financial advice which are not in sync with each other,” Mr Ellis said.

CEO of CPA Australia Andrew Hunter said, "Accounting professionals need the flexibility to talk and engage with their clients – but this is often problematic when that advice falls under multiple regulatory frameworks in the same conversation, or even the same sentence.”

IPA Group CEO Andrew Conway said, "Our shared goal is to reduce the regulatory burden on our members, so we retain financial advisers in the industry.  For the first time in the best part of two decades we are at a risk of creating an advice gap in the market.”

This – coupled with the new education and professional standards under FASEA, the current review of the Tax Practitioners’ Board and the implementation of the recommendations from the Banking Royal Commission – means there is a very real threat of added complexity.

Given the impacts of an ageing population, forced retirement savings, and ongoing concerns around financial literacy, now more than ever Australians need access to affordable, quality advice.

The three bodies have a clear focus to revisit definitions, licensing regimes and to harmonise obligations where members operate under multiple regulatory frameworks to provide the advisory services to their clients.

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THE Queensland Resources Council (QRC) has welcomed the State Government’s announcement today that an additional 30,000 square kilometres of land in the Surat, Bowen and Galilee basins would be released for gas exploration.

QRC chief executive Ian Macfarlane said the government’s release of land for exploration for all resources was essential to creating jobs, attracting investment, boosting exports and ultimately generating additional revenue for the Queensland Government in the form of royalties.

“QRC has consistently pushed for extra land to be released for exploration and development.  We have been very supportive of the release of areas for exploration and development to service the domestic gas market, supporting industry, jobs and households here in Queensland,” he said.

Mr Macfarlane said stable policy, particularly in access to resources and clear approval processes, was essential for the development of the resources sector.

www.qrc.org.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has launched a review of the impact supply chain finance has on the small business and family enterprise sector.

The review will examine the ways in which small and family businesses can use supply chain financing to manage cash flow and fund growth.

It will also look at the products being used by big business to offset extended payment times.

“Supply chain finance is a legitimate and effective tool to free-up cash flow for small and family businesses,” Ms Carnell said.

“However, it is totally unacceptable for big businesses to use supply chain financing arrangements as a replacement for reasonable payment terms being offered, 30 days or less from invoice.

“This review will provide a clearer picture on the range of supply chain finance options available on the market and which industries are using these products.

“More large businesses are offering supply chain finance to small businesses and we are keen to find out what’s driving that," she said.

“The review will investigate whether supply chain finance is being used by big business as a means to stretch out formal payment terms and as a strategy to manipulate the reporting of working capital and cash reserves.”

The full scope of the Review of Supply Chain Financing can be found here.

Small businesses and family enterprises who have had experience with supply chain financing can contribute to the Ombudsman’s review via This email address is being protected from spambots. You need JavaScript enabled to view it.

An interim report is expected to be released by the Ombudsman in March 2020, followed by a full report by the end of April 2020.

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GOTHENBURG, Sweden,-- SKF is today launching a Green Finance Framework. By engaging in green financing, SKF's funding strategy will become more aligned with the Group's climate objectives, to reduce CO2 emissions from its own manufacturing and supply chain operations as well as supporting customers to reduce their emissions.

Within the Green Finance Framework, SKF intends to finance investments that support the transition to a low-carbon, climate resilient growth and lower environmental impact.

Niclas Rosenlew, senior vice president and CFO, said, "Sustainability is integrated into our strategy and business models. Our products help to reduce friction, energy and water consumption. Our offerings have always had an impact in these areas and by making sure our financing structure also contributes to a more sustainable world, we are taking the next step in our sustainability strategy."

SKF's climate objectives focus on reducing emissions across the entire value chain. With 2015 as the base year, SKF aims to reduce its CO2 emissions from manufacturing per tonne of sold bearings and transported goods by 40 percent, respectively. The group is well on its way to achieving these goals ahead of the target of 2025.

Niclas Rosenlew said, "We are currently making substantial investments in our own operations to increase flexibility, improve productivity and safety, as well as to decrease our environmental footprint. Our position within the cleantech field also enables us to contribute to the growth of industries such as renewable energy and electric vehicles."

SKF's Green Finance Framework follows the Green Bond Principles and the Green Loan Principles. The Green Finance Framework has been independently evaluated by the Center for International Climate Research (CICERO).

Within the Green Finance Framework, SKF's intention is to issue a green bond in the near future. The Green Finance Framework is available for download at https://www.skf.com/group/investors/green-finance-framework.

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BUILDING APPROVALS for new apartments and units leapt by 16.1 percent during the month of September according to new figures out this morning. 

“Momentum in Australia’s housing market appears to be growing with the volume of new home building approvals expanding by some 7.6 percent during September,” Master Builders Australia chief economist Shane Garrett said. 

“Encouragingly, last month’s gain was led by apartments and units. This part of the market had experienced difficulties earlier in the year but the volume of new approvals for high density housing has now notched up two consecutive months of growth.

“Detached house approvals also rose during September albeit at a more modest rate of 2.7 percent. This side of the market does tend to move more smoothly from month to month,” Mr Garrett said. 

“A range of indicators – house prices, lending and now building approvals – all indicate that Australia’s housing market recovery is gaining traction. Housing market conditions have a huge impact on confidence across our economy and today’s figures must be seen as very good news on that front. 

“Commercial building approvals recorded their strongest ever result during August. Not surprisingly, they reverted to more normal levels during September,” Mr Garrett said.

During September, Queensland led the gain in new home building approvals (+19.6%) followed by South Australia (+16.0%). There were more modest increases in Tasmania (+3.4%) and Victoria (+3.3%) during the month. 

Despite the favourable national result, several markets saw new dwelling approvals drop during September including Western Australia (-24.5%), the Northern Territory (-9.3%) and New South Wales (-2.5%).

www.masterbuilders.com.au

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THE Financial Services Council (FSC) Guide on the Prevention of Elder Financial Abuse (The Guide) was launched today signalling an important step by the financial services sector towards ending the financial abuse of older Australians.

FSC CEO Sally Loane said caring for an ageing population presents society with a range of risks and challenges, and financial abuse of elderly citizens is an area becoming unacceptably prevalent in Australian society.

“The guide is a starting point for non-banking financial services organisations to identify, address and prevent the financial abuse of their older clients and customers,” Ms Loane said.

“It is vital that every sector of the wealth and asset protection industry, including those working in superannuation, advice, trustee companies and life insurance, are equipped with the guidance they need to navigate this complex but intolerable problem.

“Acknowledging the range of sensitivities with elder financial abuse, The Guide does not prescribe a one-size-fits-all framework, but rather sets out ways in which organisations can voluntarily adapt and employ aspects of best practice risk management strategies.

“Strategies range from developing protocols on how to respond to suspected financial abuse through to reviewing safeguards surrounding Powers of Attorney.”

Download a copy: https://fsc.org.au/resources/1874-the-fsc-guide-to-the-prevention-of-elder-financial-abuse-2019/file

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC’s mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity.

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