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Resources rebound delivering billions for the Qld economy

QUEENSLAND’s resources sector is lifting the State’s prosperity by creating one job every hour and investing close to $1 million every hour, says the Queensland Resources Council (QRC).

QRC chief executive Ian Macfarlane said the latest ABS data confirms the sustained commodity price recovery and larger production volumes were underpinning the State’s economy.

“In 2017-18 capex by resource companies in Queensland was $8.6 billion (up 4%) or $23.6 million every day and the sector created more than 8400 extra jobs in 12 months – the equivalent of one new job every hour,” Mr Macfarlane said.

“Our sector accounts for 35 percent of all private capital expenditure in Queensland ($24.6b) and it’s the first year we’ve seen an increase in mining capital expenditure since 2013-14.

“Resource companies are committed to spending locally with Rio Tinto spending over $1.5 billion on goods and services with Queensland suppliers at its Amrun bauxite project near Weipa.

“From Toowoomba in the South to Weipa in the North resource companies are employing Queenslanders, investing in Queensland businesses and channelling billions in royalties to the Government. 

“The challenge ahead for the sector will be to find the right people with the right skills and QRC member companies invest $1 million annually into our education arm the Queensland Minerals and Energy Academy (QMEA) to teach students STEM subjects and trade skills.” 

The Queensland resources sector now provides one in every six dollars 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.

www.qrc.org.au

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Retailers need a consumer confidence boost

THE Australian Retailers Association (ARA) believes July trade figures released today by the Australian Bureau of Statistics (ABS) represent a fair trade for July, with a 2.89 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said July’s trade figures were driven by strong growth in the Supermarket category which reached a 4 percent year-on-year growth.

“With food accounting for the bulk of overall retail trade, this July we saw Specialised food reach a 5.7 percent year-on-year growth and Liquor receive a 3 percent increase,” Mr Zimmerman said.

“Although the latest Roy Morgan Net Trust Score survey revealed the most trusted industry is the retail sector, retailers still need a consumer confidence boost.”

With retailers facing increased overheads, the ARA saw Clothing, footwear and personal accessories suffer a low year-on-year growth of 2.74 percent.

“July is always a tough month for fashion retailers because their winter stock slows down and their summer stock hasn’t had enough time to gain traction,” Mr Zimmerman said.

“This July we saw Clothing retail reach a 4.10 percent growth year-on-year, compared to a 7.35 percent increase received in June. Further to this, we saw Footwear and personal accessories post a -0.02 percent decline in July compared to the 1.05 percent increase this category received in June.”

Across the country, Victoria (5.15%) and Tasmania (4.48%) showed the strongest growth in July, closely followed by New South Wales (3.36%), the Australian Capital Territory (3.34%) and South Australia (2.68%). Queensland (1.65%) and the Northern Territory (0.68%) remained steady, while Western Australia (-1.50%) was in negative territory for the third month in a row.

“With many businesses celebrating their end of financial year functions, Cafés, restaurant and takeaway food services saw a moderate to high year-on-year growth of 2.9 percent,” Mr Zimmerman said.

“We also saw the Pharmaceutical, cosmetic and toiletry category receive a 3 percent year-on-year increase with this year’s winter ending on a cold note.”

Moving forward, the ARA would like retailers to see external factors put out of mind for retailers, who are hoping for a consumer confidence boost to assist with sales.

“Retail can only survive with increased business and consumer confidence,” Mr Zimmerman said.

“And this confidence is driven by personal tax cuts and a strong and stable Government.”

Monthly Retail Growth (June 2018 - July 2018 seasonally adjusted) 

Other retailing (1.70%), Cafes, restaurants and takeaway food services (0.61%), Food retailing (0.34%), Household goods retailing (-1.20%), Department stores (-1.89%) and Clothing, footwear and personal accessory retailing (-1.97%).

Queensland (0.77%), Victoria (-0.02%), New South Wales (-0.15%), Tasmania (-0.33%), South Australia (-0.33%), Western Australia (-0.58%), Australian Capital Territory (-0.62%) and Northern Territory (-1.60%).

Total sales (-0.01%).

 

Year-on-Year Retail Growth (July 2017 – July 2018 seasonally adjusted)

Food retailing (4.04%), Cafés, restaurants and takeaway food services (2.90%), Other retailing (2.86%), Clothing, footwear and personal accessory retailing (2.74%), Household goods retailing (1.08%) and Department stores (0.63%).

Victoria (5.15%), Tasmania (4.48%), New South Wales (3.36%), Australian Capital Territory (3.34%), South Australia (2.68%), Queensland (1.65%), Northern Territory (0.68%) and Western Australia (-1.50%),

Total sales (2.89%).

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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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QRC welcomes Qld Alumina drought donation

THE Queensland Resources Council (QRC) has welcomed a contribution by Queensland Alumina Limited (QAL) of $35,000 worth of hay to the drought relief organisation Rural Aid.

QRC chief executive Ian Macfarlane said the resources sector and the Queensland Government had rallied together to help support farming communities affected by the drought.

“I’d like to personally thank Queensland Alumina for providing around 350 large bales of much needed hay to farmers which was sourced from the refinery’s land in Gladstone,” Mr Macfarlane said.

“This week New Hope Group donated $50,000 to Aussie Helpers while Shell Australia ($100,000), Rio Tinto ($100,000) and Santos ($116,000) contributed funds to the Queensland Drought Appeal along with the Queensland Government’s $100,000 contribution.

"Arrow Energy provided lunch for 550 farmers for Beef Week, along with $10,000 towards feed for livestock at the Ekka."

Mr Macfarlane said all droughts bring extreme hardship and the impact flows through to the local butcher, barber and supermarket.

“Everyone feels the economic pain when the farms are in trouble. I strongly encourage everyone if they can to dig deep and donate what they can.”

www.qrc.org.au

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Resources sector will dig into Advance Queensland review

THE Queensland Resources Council (QRC) has welcomed the Palaszczuk Government’s announcement of a review of its signature Advance Queensland policy to promote home-grown innovation.

QRC chief executive Ian Macfarlane said to support almost 300,000 jobs and deliver 80 percent of Queensland’s exports, the resources sector adopts and develops innovation for sustainable, competitive and safe development of the State’s mineral and petroleum reserves.

“The world wants what we have, particularly for infrastructure, growth in renewables, electric vehicles and battery storage,” Mr Macfarlane said.

“To supply the cutting edge, the resources sector is at the cutting edge to ensure we are sustainable, competitive and safe.

“In announcing the Advance Queensland review today, I welcome the specific reference to mining by Innovation Minister Kate Jones.”

Minister Jones said: “Queensland’s strengths are long-term industries such as agriculture and mining and we must make sure we provide the investment in advanced technologies to ensure that we continue to be world leaders in these industries which provide long-term sustainable jobs."

Mr Macfarlane said: “On behalf of the resources sector, the QRC will be an active contributor to the Advance Queensland review.”

www.qrc.org.au

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QRC welcomes collaborative approach to domestic gas supply

THE Queensland Resources Council (QRC) has welcomed the Palaszczuk Government’s granting of an Authority to Prospect to Central Petroleum for exploration in the Surat Basin. 

QRC chief executive Ian Macfarlane said Central Petroleum would supply gas for domestic use only to the State’s largest manufacturer Incitec Pivot to support the employment of 400 workers and power the Gibson Island fertiliser plant.

“Once again we see Queensland holding the key to sustaining a long-term future for East Coast jobs and industries,” Mr Macfarlane said.

“This is another example of Queensland getting on with the job to responsibly increase gas supply, drive down prices and secure jobs.

“I applaud the Palaszczuk Government’s innovative approach to delivering domestic gas and industry for partnering together to boost the State’s manufacturing industry.”

Mr Macfarlane said today’s announcement comes six months after Central Petroleum was announced as a successful tenderer as part of the Queensland Government’s Land Release Program.

“Queensland is the case study that works, and other states ignore it at their peril,” he said.

“New South Wales and Victoria can’t expect Queensland to continue to supply, and subsidise, their own gas users when each of those states has either a handbrake or a full-blown ban on any gas development.”

The QRC claims Queensland's resources sector now provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State all from 0.1 percent of Queensland’s land mass.

www.qrc.org.au

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QRC welcomes New Hope for farmers in drought donation

THE Queensland Resources Council (QRC) has welcomed a $50,000 contribution by New Hope Group to the drought relief organisation Aussie Helpers to help support farming communities affected by the drought.

QRC chief executive Ian Macfarlane said resources and agriculture had a long and proud history of working together.

“The resources sector has played its part by building infrastructure which farmers use to service their farms and farmers have swapped the Akubra for a hard hat to work in mines delivering a skills boost to the sector,” Mr Macfarlane said.

“All droughts bring extreme hardship and the impact flows through to the local butcher, barber and supermarket. Everyone feels the economic pain when the farms are in trouble.

“I strongly encourage everyone if they can to dig deep and donate what they can.

“I congratulate New Hope Group for its contribution along with Shell Australia $100,000, Rio Tinto $100,000 and Santos ($75,000 + $41,000 in cattle sales at the Ekka) which contributed funds to the Queensland Drought Appeal.”

Arrow Energy provided lunch for 550 farmers for Beef Week, along with $10,000 towards feed for livestock during the Ekka.

www.qrc.org.au

www.newhopegroup.com.au

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ACCC considering collective bargaining exemption

THE ACCC is seeking feedback about a potential ‘class exemption’ to allow small businesses, agribusinesses and franchisees to negotiate collectively with their customers or suppliers, including franchisors.

The ACCC discussion paper published last week sets out how a collective bargaining class exemption could operate, who would qualify, and what conditions would apply. Collective bargaining by a group of businesses is currently not allowed under Australian competition law, unless the group first obtains formal approval from the ACCC.

A collective bargaining class exemption would provide a ‘safe harbour’, so businesses that qualify can collectively bargain without the risk of breaching competition law.

“Businesses can sometimes be better off negotiating with their customers or suppliers as a group. Working together, they may be able to negotiate more efficiently with larger businesses to achieve better terms and conditions than they can on their own,” ACCC deputy chair Mick Keogh said. “Businesses can already seek case-by-case legal protection to collectively bargain through an ACCC ‘authorisation’ or ‘notification’, but this requires the group to submit an application with supporting information and pay a lodgement fee.

"These processes are public and can take a number of months to finalise,” Mr Keogh said. “In contrast, once a collective bargaining class exemption is in place, eligible businesses would automatically get an exemption. This would allow those businesses to gain easier access to the benefits of collective bargaining and begin negotiating sooner.

"Over the years the ACCC has considered many collective bargaining arrangements. Most come from groups of primary producers or other small businesses wanting to collectively bargain with a larger business; for example, farmers wanting to bargain with the company who buys their produce.

“This has given us a good evidence base about the types of collective bargaining that produce public benefits and are unlikely to harm competition, and are therefore likely to be suitable for this exemption,” said Mr Keogh.

The discussion paper is available at: Collective bargaining class exemption

The ACCC is inviting feedback on these issues by 21 September 2018.

Background

From 6 November 2017, the ACCC has the power to make ‘class exemptions’ for specific types of business conduct. This new power is in addition the ACCC’s existing authorisation and notification processes that allow businesses to seek legal protection for arrangements that risk breaching competition law. Collective bargaining is the first type of class exemption the ACCC is considering under this new power.

www.accc.gov.au

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Master Builders welcomes Morrison ministry

MASTER BUILDERS Australia has congratulated Scott Morrison on becoming the 30th Prime Minister of Australia and the announcement of his Ministry.

“The Prime Minister’s recognition of the importance of industrial relations to a strong economy is important and Master Builders looks forward working with the Kelly O’Dwyer in her new role as the Minister for Jobs, Industrial Relations and Women,” Denita Wawn, CEO of Master Builders Australia said. 

“Small business and vocational skills are a major focus for Master Builders. There are more small businesses in building and construction than any other sector of the economy and our industry trains more apprentices than any other.

"We look forward to the strong focus that Senator Michaelia Cash will bring to the Small and Family Business and Vocational Skills portfolio,” she said.

“It’s particularly welcome that these portfolios have been returned to Cabinet,” Ms Wawn said. 

“Master Builders also congratulates the Alan Tudge as Minister for Cities, Urban Infrastructure and population. We know the importance of this portfolio for the productivity and livability of our cities and for important issues such as housing affordability and we look forward to working closely with him,” she said. 

“Finally, Master Builders thanks former Prime Minister Hon Malcolm Turnbull for this service to the nation. His achievement in legislating the return of the ABCC is greatly appreciated by our industry,” Denita Wawn said. 

www.masterbuilders.com.au

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Pyne pays tribute to Turnbull

MINISTER for Defence Industry, Leader of the House and Federal Member for Sturt, christopher Pyne, has paid tribute to former Prime Minister Malcolm Turnbull at the conclusion of a tumultuous day for the Liberal Party.

"Today we farewell one of the great Prime Ministers in modern Australian history," Mr Pyne said.

"Malcolm chose to leave an extremely successful career in business to serve the Australian people through our Parliament.  In doing so he brought his sharp intellect, vision, and compassion to deliver for the country.

"He leaves the Prime Minister’s office with Australia experiencing a strong economy and strong jobs growth further boosted through significant tax reductions for Australian wage earners and small and medium businesses.

"I thank Malcolm for the opportunity to serve alongside him in his Government. This has been the most rewarding part of my 25-year political career so far.

"I have worked with Malcolm to better secure our nation in uncertain times through the largest build up of Australia’s military capability in our peace time history. 

"The Government's $200 billion commitment is being utilised to not just ensure the men and women of our defence forces are best equipped to defend us, but to also transform our strategic industrial base and generate Australian jobs in a way that has never been done before.

"Malcolm was Australia’s first Prime Minister with real experience in the innovation sector which showed during my time in the Industry, Innovation and Science portfolio. This led to us launching the National innovation and Science Agenda, designed to unlock the innovation potential of the economy.

"Malcolm is a mentor, an inspiration and a friend. Australia is stronger and richer for his service and dedication."

www.defence.gov.au

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Support for Social Justice Commissioner

CO-CHAIRS of National Congress of Australia’s First Peoples, Jackie Huggins and Rod Little have welcomed the submission by four former Social Justice Commissioners together with the current Social Justice Commissioner June Oscar in offering a pathway forward on constitutional recognition.

They said the submission to the Joint Select Committee on Constitutional Recognition was based on decades of advocacy and clearly identified unfinished business of recognising Australia’s first people in constitutional reform, embedding a voice in the constitution, "a truth telling process and agreement or treaty making framework as critical to meaningful reform".

The National Congress of Australia’s First Peoples is a democratically elected body representing a membership of more than 9,500 individuals and 180 community organisations.

Dr Huggins said, “The National Congress was developed by first peoples for the people responding to the silence of a representative voice since the abolishment of the ATSIC model."

"Although, the establishment of National Congress had bi-partisan support, we were defunded in 2014, which destabilised our development.

"The Joint Submission states that whilst National Congress is in its infancy, with the appropriate resourcing and recognition it can be a far more effective representative voice. As the appropriately constituted national peak First Peoples organisation, National Congress, already carries out the important work of developing responses and providing independent advice to Government. We continue to be the voice of Aboriginal and Torres Strait Islander Australia."

Mr Little said, “Whilst governments wage internal warfare, the commitment to us as a people is forgotten."

www.nationalcongress.com.au

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The ARA congratulates new Prime Minister and looks forward to retail stability

THE Australian Retailers Association (ARA) has congratulated Scott Morrison, as Australia’s new Prime Minister, and looks forward to long-term certainty and stability in the retail sector.

Russell Zimmerman, executive director of the ARA, said uncertainty is never good for business and retailers are looking forward to a strong and stable future.

“With retail trade averaging a 2.7 percent growth this year, retailers are looking for long-term certainty and stability, as stability enables retailers to make long-term decisions, grow their business and hire more staff,” Mr Zimmerman said.

“We believe this strong and stable Government will support retailers through the current fluctuating trading environment and assist the ARA’s mission in transforming retail from a stepping-stone industry, to a long-term and fulfilling career.”

"The ARA would like to thank Malcolm Turnbull for his leadership in the past and look forward to seeing a strong and stable Government to provide solid growth in the retail sector.

“Australian retailers are constantly adapting to the ever-changing retail climate, therefore having a strong sense of unity will be a great relief for retailers across the country,” Mr Zimmerman said.

“Although our local retailers are strong and resilient, retailers need our Government’s support in growing retail, growing employment and growing the Australian economy.”

With a continued weakened economy and high employment costs, the ARA is passionate about supporting members, securing skilled staff, progressing careers in retail and ensuring the longevity of Australian retail.

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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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