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The ARA pushes for payments pain reduction

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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More domestic gas, more jobs in Queensland

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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Bigger than Debbie - exports, royalties threat from 'cyclone' on the Aurizon

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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Infrastructure Australia Priority List shows need for investment to support cities development

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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Finding common ground and a way forward for indigenous recognition​

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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Regional roundtable reunites

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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Northern Australia Tourism on the Agenda in Canberra

FEDERAL Parliament’s Northern Australia Committee is holding a public hearing in reference to its Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern Australia on Thursday, March 29 2018 in Parliament House, Canberra.

The Committee Chair, Warren Entsch MP, stated ‘the tourism industry in Northern Australia faces substantial challenges to growth, including the expense and distance associated with travelling to the north, seasonality and vulnerability to extreme weather events, and regulatory obstacles to development. The isolation of many parts of Northern Australia, including the Indian Ocean Territories, creates additional impediments to attracting visitors.’

‘At the same time, Northern Australia’s natural and cultural assets and its close proximity to Asia present significant economic and social opportunities. I look forward to hearing from government agencies about how we can build on these strengths and facilitate the development of tourism in Northern Australia, particularly in remote regions,’ the Chair said.

The hearing program and further information about the Committee’s inquiry is available on the Committee’s website: www.aph.gov.au/jscna. The hearing will be broadcast live at aph.gov.au/live.   

Public hearing details: Thursday, 29 March 2018, 9.15 am – 12.15 pm, Committee Room 1R3, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live

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Resources sector CEOs plan to spend more in 2018

A SURVEY of 27 resources company chief executives has found half plan to spend more with local suppliers across regional Queensland in 2018 and none plan to spend less.

Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said resources companies spent $6.2 billion – the equivalent of $120 million every week - with almost 9000 businesses across regional Queensland last year.

“The resources sector directly employs more than 38,000 Queenslanders, with almost 80 percent of those men and women working in regional Queensland,” Mr Macfarlane said.

“We support and rely upon thousands more staff in the regions where we work to supply equipment, fuel, food, clothing and a full range of services.

“The latest survey of resources company CEOs shows half plan to spend more and almost 20 percent say they plan to spend ‘substantially’ more with their local suppliers.

“Working with local suppliers is an investment in building local capabilities and in turn create local opportunities.

“Not one CEO surveyed said they planned to cut spending with local suppliers this year. That’s great news for business and jobs in regional Queensland.

“It’s in the interests of resources companies and the sector to work with local suppliers to develop skills and support these businesses and the communities that depend upon these businesses.”

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.

Mr Macfarlane said the QRC survey results were consistent with the Productivity Commission’s Transitioning Regions report last year, which stated:

“Mining regions continue to have high incomes and have substantially more people employed than prior to the boom. Many regions with a high concentration of activity based on mining have transitioned well from construction to production following large expansions in capacity during the mining investment boom”.

www.qrc.org.au

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Proposed liquor restrictions putting employment at risk

AS AUSTRALIA's largest retail peak body industry, the Australian Retailers Association (ARA) isconcerned the proposed liquor restrictions by the Western Australia State Government will not only affect the economy it will stifle employment.

Russell Zimmerman, Executive Director of the ARA, said these proposed restrictions will only reduce consumer choice and convenience, affecting the retailer's bottom line and in turn, employment.

“As Australia’s largest retail association, representing over 7,500 retail members, who employ more than 1.2 million people, the ARA’s primary concern is the affect these restrictions will have on employment,” Mr Zimmerman said.

“Restricting liquor stores to under 400 sqm and restricting developments based on the proximity of other stores will not only put retailers in danger, it will significantly cost jobs.”

The ARA understand the Government’s sentiment to reduce the harm caused by excessive alcohol consumption, but believe these proposed restrictions on liquor outlets will do more harm than good.

“Research states that nationally, total alcohol consumption per capita has declined during the same period that liquor licenses have been increasing,” Mr Zimmerman said.

“Therefore, it would be a mistake to push through these reforms without substantial evidence as these proposed restrictions will significantly affect the Western Australian economy.”

The ARA are supportive of educational based measures to reduce excessive alcohol consumption but believe the Government need to better engage with the industry to reduce harm.

“The Government needs to support business growth and work with local retailers to find a steady transition in promoting a healthy lifestyle without harming Australian retailers,” Mr Zimmerman said.

“With retail trade in Western Australia declining over 2017, due to their economic struggles, the State Government should be helping to build, not block business development and retail employment.”

 

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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Retailers on the hunt for some egg-cellent sales

WITH ONLY A WEEK until Easter, the Australian Retailers Association (ARA) believe the Easter Bunny won’t be the only one preparing his Easter basket, with retailers across the country stocking their shelves with all sorts of Easter treats.

Russell Zimmerman, Executive Director of the ARA, said although many retailers release their Easter products just after the new year, the bulk of Easter sales do not occur until the week before Good Friday.

“As this Easter is earlier than last year, Australians will be heading in-store sooner rather than later to buy their seafood as the Sydney Fish Market is expecting to trade more than 650 tonnes of seafood before the big day,” Mr Zimmerman said.

“Fresh food markets and supermarkets aren’t the only ones who will receive crowds of shoppers over the next week as many chocolatiers and bakeries will be also making delicious treats to add to the Easter table.”

Steve Plarre, CEO of Ferguson Plarre Bakehouses, said over 55 percent of last year’s hot cross bun sales came from new flavours and is expecting these sales to grow even higher this year.

“As Easter will arrive two weeks earlier than last year, I believe there will be a slight headwind for sales this year, but these purchases will be outweighed by the solid growth from exciting new hot cross bun flavours”.

With Australians loving their hot cross buns for the past 35 years, Elise Gillespie, joint CEO of Bakers Delight, predicts more than 20 million hot cross buns to be pulled from their ovens this year.

“Easter is one of the highlights of our year, and we are proud that we have been able to play a role in helping Australian families create their own Easter traditions for nearly four decades,” Ms Gillespie said.

As a big chocolate fan, Mr Zimmerman said he will be sure to purchase an Easter Bilby this year to honor the first Haigh’s Chocolate Easter Bilby 25 years ago and support the important work they do to save the Bilby.

“It’s great to see retailers taking initiatives in their corporate social responsibility and listening to consumer concerns, not only generating repeat customers but also increasing consumer loyalty – a crucial element in today’s uncertain trading environment,” Mr Zimmerman said.

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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Can PACER Plus work without PNG, Fiji?

PACER Plus, the Pacific Island free trade agreement,  will be examined at a public hearing on Monday by the Federal Parliament’s Joint Standing Committee on Treaties.

The Australian Government expects PACER Plus to encourage economic growth and social stability in the Pacific region by freeing up trade and investment opportunities.

However, the two largest Pacific Island economies, Papua New Guinea and Fiji, have not signed the agreement.

Committee Chair Stuart Robert MP said while PACER Plus offered many advantages for Pacific Island nations, some issues remain, including why PNG and Fiji decided not to take part.

“PACER Plus presents an opportunity for Pacific Island economies to grow beyond the need for development assistance, but the absence of countries that make up over 80 per cent of the region’s economic capacity is a concern for the Committee,” Mr Robert said.

The Committee will also examine PACER Plus’ impact on Pacific Island government revenues, public health, and business capacity.

Public hearing details: 11.00am – 12.50pm, Monday 26 March 2018, Committee Room 2R1, Parliament House, Canberra

11.00am:     Public Health Association of Australia (PHAA)
11.30am:     Australian Fair Trade and Investment Network (AFTINET)
12.00pm:     Department of Foreign Affairs and Trade
12.50pm:     Close

The hearing will be broadcast live at aph.gov.au/live

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