THE House of Representatives Standing Committee on Economics has commenced an inquiry into the impediments to business investment in Australia and is calling for submissions.

The Chair of the committee, Sarah Henderson MP, said that the committee will examine how government at all levels can better support business investment in Australia.

Ms Henderson said, ‘it is vital that regulatory frameworks and government policies at the Commonwealth and state levels foster an environment that encourages business investment. Empowering businesses to invest in new productive capacity supports innovation and helps create jobs.’

The Intergovernmental Review of Business Investment (September 2017) revealed a complex mix of structural and cyclical factors as well as institutional and policy factors that are influencing business investment in Australia.

The terms of reference asks the Standing Committee on Economics to inquire into and report on:

• the interaction between regulatory frameworks across all levels of Government and how the cumulative regulatory burden can be reduced to support greater business investment;
• the impact of innovation policies, at the Commonwealth and State government levels, on business investment and the role of innovation policies in encouraging greater business investment, having regard to approaches taken in other countries;
• the role that taxation policy, at the Commonwealth and State government levels, can have on the encouragement of new business investment;
• the role that energy policies, at the Commonwealth and State government levels, can have on the encouragement of new business investment; and
• the impact of supplier payment times, including by governments, on business investment for small to medium enterprises.

Submissions are being sought by Friday, 11 May 2018. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

For information about the inquiry visit the committee’s webpage at: www.aph.gov.au/economics

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THE PLAN by monopoly rail operator Aurizon to introduce a revised maintenance plan will slash coal exports by $4 billion per annum and cut royalties used to pay for State Government services and infrastructure by a staggering $500 million per year.

Queensland Resources Council (QRC) Chief Executive, Ian Macfarlane, said the new Aurizon maintenance plan for the Central Queensland Coal Network would have double the impact on the resources industry and its capacity to export and return royalties to Queenslanders than Severe Tropical Cyclone Debbie that crossed the coast 12 months ago today (28 March).

“Financial analysts, Macquarie Research*, have already dubbed the Aurizon maintenance plan that will cut coal throughput by 20 million tonnes per annum for four years as ‘Cyclone Aurizon’ because of the havoc it will create for the industry and the Queensland economy,” he said.

“Aurizon’s planned action would have double the punch of Debbie on our industry, on our regions and our State.

“The loss of $500 million in royalties alone is equivalent to the wages for 7388 teachers or 7430 nurses.

“With our population increasing to five million in May, Aurizon will cost every Queenslander $100 every year for the next four years.

“The damage to our export performance is also of great concern.  The Central Queensland Coal Network is Australia’s largest export coal rail network.  The resources sector accounts for more than half of Queensland’s growing goods and services exports."

Mr Macfarlane said he welcomed the Queensland Competition Authority’s (QCA) request for further information from Aurizon Network about its changed maintenance practices. 

“The QRC and its members will provide the Queensland Competition Authority with information to avoid the damage across the Queensland economy from this plan that could only be described as ‘economic sabotage’,” Mr Macfarlane said.

Releasing the QRC’s State of the Sector report today, Mr Macfarlane said the Aurizon threat came at a time when Queensland and the Palaszczuk Government could expect a stronger performance from the resources sector in employment, trade and royalties.

“The QRC’s Production Volume Index for the September 2017 quarter has increased by 14 points to 117.  This is the highest level since December 2016 quarter and the largest quarterly increase in the Index over four years (since June 2013 quarter).”

“Before Christmas, the Palaszczuk Government revised upwards royalties by $806 million for 2017-18 to 2020-22.  The Government has projected it will receive $3.7 billion from royalties this financial year.”

The Queensland resources sector now provides one in every $6 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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CREATIVE Partnerships Australia has  extended nominations for the 2018 Creative Partnerships Awards until 5pm AEST Friday, April 6.

There is now an extra week to nominate a leader in arts, philanthropy or business who drives and inspires giving to the arts.

Creative Paetnerships has provided a video link to last year's winners here.

 www.creativepartnershipsaustralia.org.au

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THE 2018 Infrastructure Australia (IA) Priority List showcases the need for a greater focus on infrastructure investment, particularly in expanding transport network capacity to support our rapidly growing capital cities. 

All of the projects identified as ‘High Priority’ are slated to improve transport infrastructure in our major cities. 

“The report recognises the opportunities of Australia’s rapidly growing population, which is currently growing faster than any other developed country,” Denita Wawn, CEO of Master Builders Australia said. 

“But to boost our productivity and living standards, we need to build vital infrastructure to meet the demands of this new population,” she said. 

“Master Builders welcomes existing government commitments to infrastructure that are contributing to a surge in commercial activity over the next five years, with transport infrastructure investment expected to peak in 2019-20,” Ms Wawn said. 

“This type of investment needs to be sustained to support population growth and the liveability of our cities,” she said. 

“The Infrastructure Priority List provides governments with a pipeline of projects in different stages of planning, so governments can invest with confidence in critical projects that will help our cities to grow and prosper. 

“Delivering these projects on-time and on-budget is critical if Australia is to meet its future growth potential. Master Builders is concerned that the merger, confirmed today, of the MUA and CFMEU, two of Australia’s most militant unions, is a threat to delivering this pipeline,” she said. 

“Previous work by Master Builders has also shown that these major transport infrastructure projects are key to supporting greater housing construction. Federal government investment in these projects, as well as through its Cities Deals Program, is slated to support the construction of more than 100,000 new homes over the next five years by reducing the infrastructure chokepoints to new housing supply,” Ms Wawn said.

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THE Australian Retailers Association (ARA) has released its submission to the Productivity Commission (PC) Inquiry into Competition in the Financial System Draft Report. The ARA isadvocating for payments reform to promote a more competitive, lower cost payments system to assist innovation across the industry.

Russell Zimmerman, Executive Director of the ARA, said low-cost routing for tap-and-go payments, online card fraud and better regulation were all key issues for retailers already struggling with high costs affecting the viability of the sector.

The ARA’s submission highlighted the need for low-cost routing for tap-and-go transactions, which represent more than two-thirds of card payments in Australia.

“The findings of the PC’s draft report show that retail merchants are struggling to manage the high costs associated with Australia’s current payments system,” Mr Zimmerman said.

“As customers expect retailers to adopt innovative, seamless and efficient payment options, retailers are left with little choice but to bear the cost burden.”

While the ARA believes online card fraud is also a key issue for retailers trying to compete in the e-commerce space, the costs of fraud mitigation technology are often too high for retailers to adopt.

“Retailers are facing considerable losses from online fraud, which has grown significantly with the rise of e-commerce, and with other countries cracking down on cyber criminals, Australia will become a bigger target,” Mr Zimmerman said.

“We are calling for an industry-backed, mandatory solution which will provide consistency, lower costs for retailers and most importantly, reduce online card fraud for Australian retailers.”

Although the PC recommended removing interchange fees, the ARA are concerned that these costs to merchants will merely be shifted elsewhere.

“We are not advocating for the total removal of interchange fees, instead we believe better interchange regulation is needed to limit the high costs of accepting international card payments from schemes like American Express and China UnionPay,” Mr Zimmerman said.

“Eftpos, Mastercard and Visa transactions are subject to interchange regulation and it's past time for the international schemes to be regulated as well.”

The PC is set to report its findings in July. To read the ARA’s full submission to the PC, click here.

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 body industry, 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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A NEW committee met yesterday, to further consider matters regarding recognition of Australia’s indigenous people, and will be co-chaired by Senator Patrick Dodson, Senator for Western Australia, and Julian Leeser MP, Member for Berowra.

The Joint Select Committee on Constitutional Recognition Relating to Aboriginal and Torres Strait Islander Peoples is expected to report by the end of November this year, with an interim report due in July.

The Committee is calling for submissions and is considering options for public meetings and hearings.

Co-Chairs Senator Dodson and Mr Leeser MP said, "As a committee, we are looking for common ground and ways forward on these critical matters for Australia’s future. We hope to hear from Australians about the next steps for recognition of First Nations peoples. We plan to consult widely, starting with First Nations leadership. We understand that a great deal of work has already been done: the job of this committee is to build on that work and to now take the next steps."

The Committee website has details of Committee membership, and will be the first point of information about the work of the Committee.

Written submissions should be received by Monday 11 June, to assist with planning meetings and hearings, but the Committee may accept submissions after this date.

Interested members of the public may wish to track the committee via the website.

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THE Queensland Resources Council (QRC) has applauded the Palaszczuk Government for granting Senex Energy a licence to produce up to 26 petajoules of gas every year into the domestic market from the company’s Project Atlas in the Surat Basin. 

QRC Chief Executive Ian Macfarlane said the granting of the licence with a domestic-only condition was an example of the State’s leading regulatory framework. 

“This pilot guarantees gas for domestic use and avoids the overly prescriptive conditions in a gas reservation policy. Not only will it create 150 jobs but the pilot has been a success in best-practice regulation in action – fast, effective and focussed on outcomes," he said. 

“The move that will see Senex supplying gas within two years comes a day after the Federal Government announced four projects – three in Queensland - to be funded under the $26 million Gas Acceleration Program (GAP) to supply an extra 12.4 petajoules of new gas to the East Coast market by 30 June 2020 and an extra 27.6 petajoules over five years.

“A recent finding from the Oakley Greenwood report found Queensland was once again leading the way in solving the East Coast gas squeeze with the lowest delivered gas price for large industrial customers. 

“The QRC will continue to work constructively with the Government on its election commitment to release gas annually to increase supply and put further downward pressure on prices. 

“Other State Governments and Territories need to get their heads out of the sand and back the science and their own industries. Only yesterday an inquiry recommended to the NT Government to lift its fracking moratorium and develop its onshore gas.” 

The Queensland resources sector now provides one in every $6 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, he said.

www.qrc.org.au

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THE Select Committee on Regional Development and Decentralisation will today convene a roundtable in Canberra which will end its public hearing schedule for its inquiry. 

The Acting Chair of the Committee, Ms Meryl Swanson MP said, “The Committee is again bringing together the Expert Panel to review and discuss the evidence gathered by the Committee since August 2017”.

“We look forward to receiving their valuable analysis. The Committee will use that analysis to help formulate our recommendations to government on how best to encourage regional development and what role decentralisation should have in that development.”

The panel includes the following people:

• Mr Jack Archer:CEO Regional Australia Institute;
• Professor Andrew Beer:University of South Australia, Chair Regional Studies Association;
• Professor John Cole OAM:Executive Director of the Institute for Resilient Regions at the University of Southern Queensland;
• Ms Anne Dunn:Director, Every Voice Inc;
• Professor Fiona Haslam McKenzie:Co-Director/Senior Principal Research Fellow, Centre for Regional Development, University of Western Australia; and
• Professor Tony Sorensen:University of New England

The roundtable is open to the public. Details of the roundtable proceedings, and a transcript of the discussion will be available on the Committee’s website.

Public hearing details: 3:30pm - 6:00pm, Wednesday 28 March, Committee Room 2R2, Parliament House

For the full programs of this public hearing, see the Committee’s website.

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