BOTH major parties need to "re-commit to policy agendas for economic growth following the worse than expected performance by the Australian economy in the closing months of last year," according to Master Builders Australia CEO Denita Wawn. 

“The latest GDP figures from the ABS show that the economy grew by just 0.2 percent during the December 2018 quarter, a weaker result than expected,” she said. 

“Australians know that we need strong economic growth to boost living standards, provide jobs and provide the certainty and incentive for business to keep investing.

“As the nation’s second largest industry, building and construction is already a major driver of growth in the economy but worryingly, a number of components of the economy actually shrank during the quarter including new home building activity, home renovations and commercial and civil construction. 

“We want both major parties to show their commitment to an economic growth at the upcoming Federal Budget so that the slide can be halted and the policies for a new period of economic growth delivered,” Ms Wawn said. 

 “As the economy’s largest provider of full-time jobs, construction must be at the centre of the recovery. Government needs to explore ways to reduce the burden on an already heavily taxed sector, and look accelerating public works programs. 

“We want to see more shovel ready infrastructure projects out the door for construction to commence not just languishing on lists.

“We want policies that will actually increase the construction of new homes and jobs in the residential building sector rather than taking them backwards,” Ms Wawn said. 

“Stimulating building activity not only boosts demand over the short term. Well-targeted construction projects would expand the economy’s creative potential for decades to come.

“A strong construction industry builds a strong economy,” Ms Wawn said.

www.masterbuilders.com.au

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ENERGY NETWORKS Australia CEO Andrew Dillon today welcomed the Western Australian Government’s announcement of an Energy Transformation Plan.

“The power prices consumers pay are linked to the total system cost, so it makes sense to consider how the co-ordinated end-to-end power system of the future should look,” Mr Dillon said.

“It’s a positive step that a government is thinking beyond short-term rebates and starting to plan for how we manage an integrated low emissions electricity system.

“Energy Networks Australia will tomorrow be launching the first of a set of guidelines for safe, consistent and efficient connection of solar, storage and battery devices to the grid.”

Distributed energy resources (DER), which include household solar panels and batteries, present challenges to electricity grids that were not designed to handle individual energy sources.

This is why Energy Networks Australia and the Australian Energy Market Operator are working on the Open Energy Networks project. The project is investigating how best to integrate DER into Australia's electricity grid.

“Open Energy Networks is developing options to improve the electricity system to ensure household solar and storage work in harmony with a grid that was never designed for two way energy flows,” Mr Dillon said.

“As we move to greener grids, this work will help ensure reliable supply and lower household power bills for all customers.

“We look forward to seeing more detail about the WA Government’s planning program for DER integration.”

More information about the National Connection (DER) guidelines can be found here.

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THE maritime union has welcomed Labor’s commitment to create a government-owned National Fuel Reserve, describing it as an essential step to protect Australia from natural disasters or global crisis that could disrupt oil supplies.

The Maritime Union of Australia said Australia has been in breach of the the International Energy Agency’s 90-day fuel stockholding obligation since March 2012, with figures released last month showed the country had just 22 days of petrol and 17 days of diesel on hand.

MUA national secretary Paddy Crumlin said the fuel reserve commitment, along with Labor’s previous announcement of a National Strategic Fleet that will include oil tankers and gas carriers, were vital steps required to safeguard the security of an island nation that is reliant on fuel imports.

“For nearly seven years, Australia has been in breach of the IEA rules that are in place to ensure member nations have the capacity to weather unforseen disruptions to the global supply chain,” Mr Crumlin said.

“Despite countless reports warning about Australia’s lack of fuel security and the urgent need for action, the Abbott, Turnbull, and now Morrison Coalitions Governments have done absolutely nothing.

“Australia is the only developed oil-importing country without government-controlled stocks of crude oil or refined petroleum products, which has become more and more of an issue as the proportion of our fuel that is imported has risen to well over 90 percent.”

The MUA last year commissioned a report by shipping expert John Francis, Australia’s Fuel Security – Running on Empty, which found that Australia now relies on the equivalent of almost 60 full-time fuel import tankers to keep us supplied with petrol, diesel and jet fuel.

“This research concluded that the Australian economy would grind to a halt within weeks of a major crisis in the region that interrupted fuel shipments,” Mr Crumlin said.

“It also found that Australia’s reliance on foreign flagged tankers removed any opportunity for the Commonwealth to requisition national flag tankers if necessary to secure imports or coastal distribution requirements following major economic or geopolitical disruptions.

“The commitment that a Shorten Government will both create a national fuel reserve, along with a strategic fleet that includes Australian-flagged oil tangers, provide a welcome end to years of political inaction that continues to put all Australians at risk.

“The public now have a stark choice between the Liberal National Government, which has done nothing to address fuel security, and a Labor Opposition with a clear vision for protecting Australia’s economic security by creating a government-owned fuel stockpile and Australian oil tankers to bring it here.”

THE House of Representatives Standing Committee on Economics will hold public hearings in Malvern, Brighton, Mount Martha and Torquay, Victoria, for its inquiry into the implications of removing refundable franking credits.

Chair of the committee, Tim Wilson MP, said, "The committee continues to gather evidence about how the removal of refundable franking credits would affect investors, particularly senior Australians whose financial security could be compromised.

"The committee has received well over 1000 submissions, including many from retires who are concerned they will be forced on to the aged pension if the ability to claim a refund on their franking credits is removed.

"These hearings will provide an opportunity for Australians impacted by a change to refundable franking credits to address the committee directly with a three minute statement, and we welcome their contributions and participation," Mr Wilson said.

Public hearing details:

Malvern, 10am to 11.30am, Tuesday, 19 March 2019, St George's Anglican Church Hall, 296 Glenferrie  Road, Malvern, Victoria

Brighton, 2pm to 3:30pm, Tuesday, 19 March 2019, Brighton Town Hall, Corner of Carpenter St and Wilson St, Brighton, Victoria

Mount Martha, 9am to 10.30am, Wednesday, 20 March 2019, New Peninsula Centre, 370 Craigie Rd, Mount Martha, Victoria

Torquay, 3pm to 4.30pm, Wednesday, 20 March 2019, Spring Creek Pavilion, Spring Creek Reserve, Torquay, Victoria

Further public hearings will be announced as the inquiry progresses. The hearings will be webcast live (audio only).

A number of submissions have been received and are available on the committee’s webpage at: www.aph.gov.au/economics. A number of submissions are currently being processed and will be published over the coming months. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

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“THE NUMBER of approvals for new home building started 2019 on a positive note with an increase of 2.5 percent during January in seasonally-adjusted terms,” according to Master Builders Australia’s chief economist Shane Garrett. 

“The rise in approvals during January follows a run of weak results during the back end of last year. Higher density housing in particular has lost a lot of ground over the past 12 months,” he said. 

“During January, the number of approvals for new detached houses rose by 1.9 percent with a stronger increase of 3.8 percent on the apartment/units side of the market,” Mr Garret said. 

“Despite the welcome increase in approvals during January, we are still down by almost 30 percent compared with this time last year,” he said. 

“The ongoing difficulties in the flow of credit and concerns about the direction of housing policy post-election are having negative effects on home building activity,” Mr Garrett said. 

“Construction is the economy’s largest provider of full-time jobs and the upcoming round of federal, state and territory budgets provides a real opportunity to get us back onto the right track." 

During January, WA saw the largest increase in total new home approvals (+28.8%), followed by Tasmania (+15.4%) and NSW (+12.0%). 

The largest reductions affected the ACT (-19.8%) and the NT (-8.0%). Approvals also declined in Victoria (-7.9%), Queensland (-3.5%) and SA (-1.5%) during the month.

www.masterbuilders.com.au

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell welcomed the Joint Standing Committee report on access to Free Trade Agreements (FTAs) by small and medium enterprises (SMEs) and urged bi-partisan support for key recommendations.

“The proposed centralised ‘single trade window’ of resources would help SMEs to tap into some of our largest trading markets,” Ms Carnell said.

“There are a number of FTAs and each has different requirements, paperwork and processes, which can be quite daunting to an SME owner, particularly smaller businesses.

“We support the continued use of specific SME chapters in FTAs, including an e-commerce focus, and encourage additional SME user-friendly guidance and support for stepping into the business of exporting.

“Despite our existing trade partnerships and the new partnerships with 10 countries through the Trans Pacific Partnership, SMEs have not experienced the same growth in exports as has big business.

“This report acknowledges that Australia has so much to offer in the exporting of goods and services by SMEs.

“Recommendations around reducing the complexity of overlapping FTAs and trialling a grant program in regional areas will open up doors for trade and investment, and new growth opportunities.

“By realising the key recommendation in this report, SMEs would be in a better position to weigh up their options and potentially chart a way forward for their business overseas.

“The review of Export Market Development Grants and the role of Efic is also welcomed as access to adequate finance for exporting SMEs remains a significant issue.

“The signing of the landmark FTA with Indonesia today will provide many more opportunities for Australian SMEs.”

www.asbfeo.gov.au

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THE Australian Retailers Association (ARA) has commended Western Australia’s (WA) State Government on their efforts to approve an additional four hours of trading for general retail shops situated within the Perth metropolitan area, for both the Labour Day and Easter Monday public holidays.

The announcement made by the State Government means that larger retail shops will now have the opportunity to trade any time between 8am until 6pm on Labour Day and Easter Monday, instead of the previous 11am to 5pm trading hours.

Russell Zimmerman, executive director of the ARA said the decision put forth by the WA State Government is a positive step towards creating a level playing field for retailers who are competing in a 24/7 marketplace. 

“We now live in an age where everything is so readily available and with online retailers offering the convenience of around the clock purchasing of products and services, customers have the option shop to whenever and wherever,” Mr Zimmerman said.

“While this is convenient choice for consumers, it is placing an immense amount of pressure on local retailers’ capacity to compete in the highly saturated retail market. Therefore, the decision made by the State Government should provide some relief for WA retailers and offer them the chance to compete alongside their competitors which should assist in reducing the strain.”

As the retail industry employs more than 1.2 million people, the ARA believe the extended trading hours will greatly benefit retail staff, as retail employers will now have the option to roster extra staff on these public holidays.

“With public holidays such as Easter being a busy time for retailers, employers will be looking to roster or hire extra staff to work during this period to accommodate for the rush of customers who will be preparing for the celebrations,” Mr Zimmerman said.

“As the number of jobseekers in Australia continues to increase, the extended trading hours put in place by the State Government will provide these prospects with the opportunity to earn extra wages if they so please.”

With the latest December retail trade figures recorded by the Australian Bureau of Statistics (ABS) indicating that  WA had recorded a 1.23 percent year-on-year growth, its strongest since July 2017, the ARA believes the extended trading hours will be a positive contribution to retail trade and assist in strengthening the retail industry.

“The December trade figures produced some commendable results for year-on-year growth across the States and Territories and WA was one of the States that showed improvement throughout 2018,” Mr Zimmerman said.

“The decision made by the WA State Government is a promising lead for retail trade in 2019 and should alleviate   some of the pressure on retailers operating within the metropolitan region and stimulate the overall local WA economy.

"The ARA would like to formally thank the WA State Government on their decision and encourage them consider reviewing trading hours across the whole year."

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 7,800 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Queensland Resources Council will meet with the Palaszczuk Government next week in a bid to arrest the further decline in the State’s attractiveness for resource investment. 

QRC chief executive Ian Macfarlane said the Canadian-based Fraser Institute global survey of mining companies found Queensland’s investment attractiveness fell from 12th to 13th of 83 jurisdictions around the world. 

“It means Queensland is becoming less attractive for mining companies when they decide to invest.  The world is watching,” he said.

“For Queenslanders, the less attractive we are for new investment is the less potential to create jobs, grow exports and earn royalties to pay for services and infrastructure.  A strong resources sector is a strong foundation for the quality of life for Queenslanders.”

Premier Annastacia Palaszczuk told the QRC annual lunch in November last year that her government would work with the QRC to promote existing initiatives and explore new opportunities to:

• expand the availability of land for mineral and energy resource exploration and development;

• strengthen our export partnerships, create new resource export markets and increase development of advanced manufacturing and renewable energy in Queensland;

• identify and develop the skills and training needed for our resources industry and opportunities for diversity of employment by increasing the number of women and Indigenous Queenslanders in the industry.

Mr Macfarlane said QRC would meet with the government, including Trade and Investment Queensland, "to ensure we redouble our combined efforts to sell a strong Queensland message". 

“Now is not the time for mixed messages on resources.  We need to speak with one voice — we want the investment to deliver the energy mix, infrastructure, advanced manufacturing and expansion of renewable energy, electric vehicles and batteries around the globe,” he said. 

“These survey results are a further warning that a number of projects in an estimated $70 billion of resource projects might not proceed.  These projects take many years to get to a final investment decision.”

Mr Macfarlane said while the Fraser Institute survey found Queensland was 12th for mineral potential, it was marked down for uncertainty for environmental regulation (49th), regulatory duplication and inconsistency (48th), and uncertainty concerning the administration, interpretation and enforcement of existing regulation (39th).

The Queensland resources industry supports more than 316,000 jobs across Queensland or the equivalent of one in eight in the state’s workforce, according to the QRC. 

The sector also contributed more than $62 billion of the State’s gross domestic product or the equivalent of one in every six dollars, as well as more than 80 percent of the state’s exports with overseas sales of Queensland coal, metal and petroleum increasing to more than $60 billion, propelling Queensland exports to a record $81 billion in 2018.

www.qrc.org.au

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