THE December edition of the Resources and Energy Quarterly reinforces the importance of stable policy settings to encourage ongoing investment in the resources sector.
 
Queensland Resources Council (QRC) chief executive Ian Macfarlane said the annual update of the project pipeline featured in this edition showed Queenslanders had reason to be optimistic about ongoing benefits from the sector.
 
“Queensland’s resources sector is one of the foundation stones of our state’s economy. It employs more than 316,000 Queenslanders across every city, town and regional community,” Mr Macfarlane said.
 
“It’s important for every Queenslander that we keep the resources sector strong.
 
“We should ensure Queensland has the best possible conditions to attract future investment and translate the state’s potential into more jobs and billions more in royalty taxes.
 
“Earlier this month, the return from resources royalty taxes was revised up to $5.1 billion in the Queensland budget.  The vast majority of those returns come from investments in both metallurgical and thermal coal projects.
 
“Without resources royalty taxes, this year’s Queensland budget would be in the red by about $4.6 billion.
 
“Queensland’s future investment prospects are spread across a range of commodities including our traditional powerhouse of coal, as well as prospects in rare earths and critical minerals. One example is the Queensland-based Sconi Project, which will produce cobalt, nickel and scandium.
 
“Queensland has world leading rehabilitation laws that ensure the resources sector can develop sustainably and in concert with other industries such as agriculture.
 
“We must ensure consistent and practical regulation, including stable royalty rates and the elimination of excessive red tape, to further cement the returns to Queensland from a strong and prosperous resources sector.
 
“Both State and Federal Governments must be crystal clear that there is no tolerance for frivolous or vexatious legal action designed solely to delay or disrupt lawful resources projects.
 
“All Queenslanders will benefit from the continuing strength in the resources sector, which pays for teachers, nurses and police, which builds schools, hospitals and roads, and which spreads economic benefits to city and regional communities.”

www.qrc.org.au

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THE Australian Retailers Association (ARA) and Roy Morgan believe Aussies will extend their spending into the summer months following the Christmas rush, with the ARA and Roy Morgan predicting consumers to spend $18.3 billion nationwide from December 26, 2018 to January 15, 2019. 

With the festive season igniting a shopping frenzy across Australia, the ARA and Roy Morgan forecast that Aussies will continue to prolong their post-Christmas spend into the New Year, contributing to a 3.1 percent year-on-year lift in sales.

Russell Zimmerman, executive director of the ARA, said the respectable growth is attributed to the post-Christmas trade bargains offered both in-store and online, as a vast amount of consumers will be on the lookout for the best deals.

“With Christmas being the peak season for trade, pre-Christmas sales have always been a busy time for retailers. However, post-Christmas sales are the opportune time for retailers to achieve their yearly sales targets prior to the New Year commencing,” Mr Zimmerman said.

“As the ‘Other retailing’ category is set to experience a 2.9 percent increase in growth over the post-Christmas period, the ARA and Roy Morgan foresee a large proportion of consumers heading online to take advantage of the generous discounts retailers have to offer.”

According the ARA and Roy Morgan, the Food and Apparel categories are each set to experience an impressive 3.8 percent growth throughout the post-Christmas trading period, with the ARA suspecting customers will be preparing their households and purchasing outfits to welcome in the New Year.

“With 2018 drawing to a close, Aussies will be stocking their fridges and purchasing new outfits ahead of the upcoming New Year festivities. As we ease into the summer months, we expect consumers will also be purchasing school uniforms as the kids head back to school,” Mr Zimmerman said.

“Across the states, the Australian Capital Territory, New South Wales and South Australia are prospected to post marginal gains, as Aussies will be setting their sights towards getting their hands on a bargain prior to the commencement of the new retail season,” Mr Zimmerman said.

While post-Christmas sales in New South Wales are projected to collect a striking $5.9 billion, Victoria will recognise the strongest proportional growth, with the ARA and Roy Morgan anticipating a 5.5 percent increase from the previous year. Tasmania is also expected to receive significant growth with a 4.4 percent uptick on the previous year.

“Although New South Wales are dominating this year in terms of total spend, Victoria and Tasmania should prove to be fierce contenders in overall growth terms during the post-Christmas sales, which will hopefully translate well-into the New Year,” Mr Zimmerman said.

“While the Australian retail landscape has faced various challenges throughout the 2018 year, we anticipate our pre-Christmas and post-Christmas predictions will be fulfilled and reflected next year through the arrival of ABS trade figures for December and January.

"Each year, the ARA proudly partners with Roy Morgan to deliver the only professionally researched and comprehensive retail figures in the industry, with accurate and proven year-on-year results."

ARA Roy Morgan Post-Christmas Sales Predictions

December 26 2018 - January 15 2018
 

2018 Post-Christmas Sales Growth by Category

[ARA / ROY MORGAN]

2018 Post-Christmas Sales Growth by State

[ARA / ROY MORGAN]

https://www.retail.org.au/christmas-predictions/

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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.

About Roy Morgan:

Roy Morgan is Australia’s best known and longest established market research company, with an unparalleled reputation for reliable, accurate, meaningful, revealing market research. Proudly independent, the company now operates globally.

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ENERGY Networks Australia has welcomed support from the COAG Energy Council for a national hydrogen strategy and a streamlined process to deliver a more connected electricity grid.

CEO Andrew Dillon said the COAG Energy Council direction to progress the Group 1 projects in the Australian Energy Market Operator’s Integrated System Plan was an important step towards delivering better flows of power across the National Electricity Market (NEM).

“Around the world, the logical response to growing levels of variable renewable generation is to have a more connected electricity system,” Mr Dillon said

“A more connected grid that links states will provide significant benefits to customers – better reliability and increased competition in the wholesale energy market.

“The overall savings to the electricity system from timely transmission investment have been estimated by AEMO to be about $1.2 billion – savings for customers off future power bills.”

Mr Dillon also welcomed the South Australia and New South Wales Memorandum of Understanding to progress a new electricity interconnector between the two states.

“This project will lower electricity prices in both states and improve security of power supply right across the NEM,” he said.

Another important decision of the COAG EC was the agreement to develop a national hydrogen strategy to progress options to decarbonise Australia’s gas networks and the development of a hydrogen export industry.

“Hydrogen is a fuel of the future and Australia is perfectly placed to benefit from its use to help decarbonise our gas sector,” he said.

About Enery Networks Australia

Energy Networks Australia represents Australia’s electricity transmission and distribution networks and gas distribution networks. Members provide energy to virtually every household and business in Australia.

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THE RECORD returns from the resources industry to the Queensland Budget show the importance of continued exploration and investment in new projects to keep the budget in the black, the Queensland Resources Council (QRC) said today.

QRC chief executive Ian Macfarlane today welcomed Treasurer Jackie Trad's budget update, showing record returns from coal royalty taxes.

“Queensland’s black coal is putting the Queensland budget in the black,” Mr Macfarlane said.

“Resources investment keeps Queensland’s economy firing on all cylinders and keeps the budget out of the red.

“Without resources royalty taxes, in particular from black coal, the budget surplus of $524 million would be a budget deficit of $4.6 billion.” (*see graph below)

Returns from coal royalty taxes are now at a new record of $4.26 billion, up more than $700 million on the $3.52 billion forecast in the budget. For the period to 2020-21, coal royalty taxes have been revised up by $1.8 billion. Overall, Queenslanders will receive a record $5.12 billion in royalty taxes from the entire resources sector in this financial year.

“This is no short-term sugar hit.  Our resources sector has a long-term future that will deliver benefits for Queenslanders now and for decades into the future," Mr Macfarlane said.

“The world needs our met coal, which builds modern cities, cars, homes and solar panels.

“The world needs our cleaner thermal coal, which burns more efficiently and with a lower ash content than coal from other nations.

“And the world needs our LNG and minerals such as bauxite and zinc.

“This record return from the resources industry equates to the annual salary of more than 71,000 beginning teachers or more than 70,000 first year constables or more than 72,000 registered nurses.

“It can build roads, school and hospitals and invest in regional infrastructure.

“But we can’t take this success for granted.  We must ensure an ongoing pipeline of resources projects, through stable regulation and stable royalty tax rates, and through ongoing exploration and development of new projects and new resource provinces including the North West Minerals Province and the Galilee Basin.

“While we welcome changes to the GST formula that recently went through the Federal Parliament with bipartisan support, the fact remains that Australia’s resources states are doing the heavy lifting.

“Queensland props up our southern neighbours who refuse to develop their resources and who keep their gas locked in the ground. The free ride can’t last forever.

“Queensland is a resources superpower.  We are proud of the role our resources sector plays in creating a stronger, more prosperous Queensland.

“Our sector employs more than 316,000 people, it creates 1 in every $5 for the state and it benefits 14,200 local businesses.

“Other states lock up their resources sectors to their own extreme disadvantage. Queensland will continue to show the way to develop a sustainable resources industry that delivers returns to landholders, to our towns and cities, and works hand-in-hand with other sectors such as agriculture and tourism.”

www.qrc.org.au

THE Queensland Resources Council (QRC) has welcomed a series of upgrades to an app, developed and operated by the GasFields Commission, but will remain vigilant to ensure there is action on possible future improvements to further strengthen the co-existence between the agriculture and gas industries.

QRC chief executive Ian Macfarlane said the app was a guidance for landholders when negotiating an agreement with a gas company.

“The development of the Queensland gas industry over the last 15 years has benefited from the partnership with agriculture industries and individual primary producers. Indeed, as the GasFields Commission itself has reported, more than $380 million has been paid to primary producers through agreements with gas companies,” he said.

According to the GasFields Commission Queensland Industry Snapshot, at the end of June 2017 there were 5,711 Conduct and Compensation Agreements in place, with $387 million paid to landholders in compensation. These agreements have been negotiated by gas companies with landholders to enable access, infrastructure and the extraction of gas.

Mr Macfarlane said QRC had worked with AgForce and the Queensland Government to secure upgrades to the GasApp due to reported confusion among landholders and project proponents over earlier versions of the app.

www.qrc.org.au

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has commenced a review of the Telecommunication and Other Legislation Amendment (Assistance and Access) Act 2018.

The then Bill was passed by the Parliament on December 6, 2018, and the amendments made by that Bill were referred to the Committee by the Senate.

The Chair, Andrew Hastie MP, and the Deputy Chair, Anthony Byrne MP issued the following joint statement:

"The Committee reached bipartisan agreement in its report on the Assistance and Access Bill. This review will focus on the final Act as passed by the Parliament on December 6, 2018, with specific reference to Government amendments—including those made to effect the Committee’s bipartisan recommendations—made on that date. This further inquiry implements Recommendation 16 of the Committee’s report on the Assistance and Access Bill, for the Committee to complete a review of the new laws by April 3, 2019."

The Committee will accept submissions on any new matters arising with the passage of the Act, and will consider the need for further hearings as the inquiry progresses.

In addition to the current review, the Committee will again be required to review the new laws alongside its review of the data retention regime. That statutory review must be commenced by April 2019 and completed by April 2020.

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

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THE Queensland Resources Council (QRC) has welcomed a donation by ConocoPhillips Australia of $50,000 to communities affected by the bushfires in Central Queensland.

 
QRC chief executive Ian Macfarlane said the donation, to not-for-profit GIVIT, would help alleviate the pain people are going through after the devastating fires.  
 
“I would like to sincerely thank ConocoPhillips Australia for this considerate donation which will help people who have lost homes and farming equipment,” Mr Macfarlane said.
 
“It’s important for the resources sector to help out regional communities with many of our own projects operating nearby. ConocoPhillips Australia operates the Australia Pacific LNG facility on Curtis Island, near Gladstone.”
 
GIVIT will be able to use the funds immediately with 100 percent of donations used to support Queenslanders in fire-affected areas and has a policy of buying locally where possible.
 
Anglo American which has coal mines near Middlemount, Moranbah and Moura donated $100,000 to GIVIT last week. 

www.qrc.org.au

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WITH THE Australian Retailers Association (ARA) and Roy Morgan predicting Australians to spend over $7.3 billion in the ‘Other retailing’ category during the Christmas trading period from November 9 to December 24, 2018, the ARA suspect books will be piled high under the Christmas tree this year.

The ARA believes physical and online books will contribute marginally to the ‘Other retailing’ category, with the ARA and Roy Morgan projecting a 2.7 percent increase in sales for this category in the lead-up to Christmas.

Russell Zimmerman, executive director of the ARA, said retailers who specialised in books would be preoccupied with filling orders for customers who will be purchasing books to gift to their families and friends for the big day.

“With Christmas only a little over a week away, Dymocks are estimating over 2 million books to be sold in the lead-up to Christmas, accounting for 30 percent of total books sales,” Mr Zimmerman said.

“As a subsequence, book retailers will be experiencing a significant increase in the amount of pre-orders being placed through the stores and customers will be flocking to the shops to secure the perfect reads for their loved ones.”

Findings from Nielsen BookScan detect that online book merchants will also receive an influx in sales, with the last four weeks of the year accounting for 17 percent of total annual sales value. Nielsen BookScan have also noticed a growth in physical book sales, with a 1.3 percent increase so far this year.

Sophie Higgins, head of marketing and merchandise at Dymocks, said this year's non-fiction category will notice a buoyant incline from 39-50 percent of total sales, with biographies and cookbooks influencing the surge.

“With the likes of Shane Warne, Leigh Sales and Michelle Obama’s biographies hitting the shelves, customers have been eager to get their hands on some of the biggest titles to come out this year,” Ms Higgins said.

“Cookbooks are always a fan favourite for Christmas, and with bestsellers coming from Jamie Oliver, Donna Hay, Yotam Ottlenghi and Annabel Crabb, Aussies will have endless recipes to trial and master.”

Australian fiction has also experienced a resurgence in the lead-up to Christmas, with top-five Australian authors, including Matthew Reilly, Liane Moriarty, Jane Harper and Kate Morton, releasing new titles this year.

“It is quite pleasing to see bibliophiles supporting homegrown authors. With such a rich breadth of talent to select from, consumers will have their shelves full of intriguing and thought-provoking novels this Christmas,” Mr Zimmerman said.

According to Dymocks, children’s books will also see a 150 percent sales spike during the festive season. With pre-orders for author Jessica Townsend exceeding 1100, children’s imaginations will be filled with exciting stories and adventures to share with their friends and family.

"Whether you’re a lover of non-fiction, cookbooks or novels, or simply wish to spoil your child with captivating tales, there are anabundance of spectacular page turners to unwrap for Christmas this year," Mr Zimmerman said.

ARA Roy Morgan Pre-Christmas Sales Predictions

November 9 – December 24, 2018

2018 Pre-Christmas Sales Growth by Category

[ARA / ROY MORGAN]

2018 Pre-Christmas Sales Growth by State

[ARA / ROY MORGAN]

https://www.retail.org.au/christmas-predictions/

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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.

About Dymocks:

Dymocks is Australia’s leading bookseller, with 59 stores in Australia and over 7 million books sold last year. Dymocks aims to inspire more booklovers by delivering the best customer experience through its range and passionately knowledgeable team.

About Nielsen BookScan:

Nielsen BookScan is the world’s first continuous retail sales monitoring service for print books, based on electronic point of sale data collected directly from tills and dispatch systems.

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