DOMESTIC gas supply is set for a boost with Arrow Energy’s announcement of their sales agreement with Shell’s QCLNG for Queensland gas.

Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said Arrow will unlock significant gas reserves in the Surat Basin which will increase supply into the domestic market.

“Today’s announcement brings the scale and infrastructure of LNG production to bear on Arrow’s proven gas reserves. That’s the only way to get this gas out of the ground at an affordable price”, said Mr Macfarlane

“More gas being produced is good news for all gas customers both domestic and export.

“The QRC congratulates Arrow and Shell’s QCLNG on this milestone agreement which again demonstrates that Queensland is leading the way when it comes to working to address the problem of the gas shortage."

The 27 year-year agreement will see Arrow use existing gas pipelines and related infrastructure. The project will create around 1000 new jobs and will benefit every Queenslander through royalties.

“These two companies are here for the long-haul and this agreement will deliver a whole generation of prosperity to the Darling Downs. Long term jobs allow training and supply opportunities to deliver enduring benefits to local communities such as Wandoan, Miles, Chinchilla and Dalby,” Mr Macfarlane said.

“We only hope that the other states follow Queensland’s lead and open up gas reserves to help fix the energy crisis households and businesses, especially manufacturers, along the eastern seaboard are facing.
 

“This one agreement alone will deliver enough extra gas to more than power Queensland’s entire industrial demand every year out to 2047."

QRC’s current data shows that in 2016-17, the state’s gas industry contributed $8.9 billion to the state’s economy and supported 42,938 full-time Queensland jobs.

www.qrc.org.au

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THE effectiveness of regulation aimed at stabilising and strengthening the world’s banking industry is still unknown nearly a decade after the global financial crisis, according to a leading finance sector researcher at the University of Sydney Business School.

Associate Professor Eliza Wu made the comment ahead of the Business School’s 2017 Banking and Financial Stability Conference to be attended by leading banking experts and banking regulators.

The two day Conference, which begins tomorrow, will be held in the wake of Prime Minister Malcolm Turnbull’s announcement of a banking royal commission.

“The fact is that we don’t know what effect these regulations, including Basel iii and iv, will have in the medium to long term,” said Dr Wu. “We don’t know if the sector is over regulated or if we need more controls.”

“Here in Australia, regulators have been working to cool the lending market. We are also concerned about the banking sector’s exposure to the real estate market and the lack of regulatory oversight of the fintech and peer to peer lending sectors,” she said.

The Future of Banking Regulation will be the focus of the Conference’s Policy Panel Discussion between the Bank of Finland’s Dr Iikka Korhonen, Dr Frank Packer of the Bank for International Settlements and Aidan O’Shaughnessy of the Australian Bankers’ Association.

The key note address, to be delivered by Professor Steven Ongena, Professor of Banking, University of Zurich, will focus on the Spillovers of Macroprudential Policies.

“The heavily disrupted world of banking and finance is evolving very quickly and the regulators and often industry operators themselves, exist under an unforgiving regime of catch-up. That’s why this conference is crucial,” said Dr Wu.

Conference Details;

Date:               Friday 1st and Saturday 2nd of December 2017

Venue:             University of Sydney Business School, Abercrombie Building (H70)

                        Cnr Codrington and Abercrombie Streets, Darlington

Contact:           Trevor Watson 0418 648 099 or Laura Box 0431 860 844

Website           http://sydney.edu.au/business/finance/banking_and_financial_stability

Conference Highlights:

Friday 1 December 2017

8.45-9.30 External Financing of Last Resort? Bank Lines of Credit as a Source of Long-term Finance. Presenter: Professor Ron Masulis, UNSW Business School

9.30-10.15 Presidential Power and Shareholder Wealth Presenter: Professor Nadia Massoud, Melbourne Business School

10.45-11.30 Commercial Bank Failures During The Great Recession: The Real (Estate) Story Presenter: Dr Adonis Antoniades, National University of Singapore

11.30-12.30 KEYNOTE ADDRESS: Professor Steven Ongena, Professor of Banking, University of Zurich - Spillovers of Macroprudential Policies

1.30-2.30 POLICY PANEL DISCUSSION: The Future of Banking Regulation

Dr Iikka Korhonen (Bank of Finland), Dr Frank Packer (Bank for International Settlements) & Mr. Aidan O’Shaughnessy (Australian Bankers’ Association)

Chair & Moderator: Associate Professor Eliza Wu.

2.30-3.15 Marketplace Lending in Australia Presenter: Dr Andrew Grant, University of Sydney Business School

3.45-4.30 Sharing the Pain? Credit Supply and Real Effects of Bank Bail-ins

Presenter: Professor Thorsten Beck, Professor of Banking and Finance, Cass Business School

4.30-5.15 Where are the Large Banks? Stress Tests and Small Business Lending Presenter: Dr Kristle Cortes, UNSW Business School

5.15-6.00 Chair: Off-balance Sheet Securitization, Bank Lending and Corporate Innovation Presenter: Dr Zhaoxia Xu, UNSW Business School

Saturday 2nd December 2017

9.00-9.45 On the International Effects of Country-Specific Financial Sector Bailouts Presenter: Dr Matthew Greenwood-Nimmo, University of Melbourne

9.45-10.30 Personal Trading by Brokers, Analysts and Fund Managers Presenter: Associate Professor Joakim Westerholm, University of Sydney Business School

11.00-11.45 Geopolitics and International Bank Flows Presenter: Dr Phong Ngo, Australian National University

11.45-12.30 The Impact of Risk-based Capital Rules on Income Inequality: Global Evidence Presenter: Professor Iftekhar Hasan, Fordham University; Bank of Finland & University of Sydney Business School

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THE Australian Retailers Association (ARA) urge the Senate to oppose Labor’s amendments to the Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017 as this Bill has been developed to improve the flexibility and efficiency of Enterprise Bargaining Agreements (EBA)s.

As retail is the largest single private employer in Australia, employing more than 10 percent of the working population across the country, Russell Zimmerman, Executive Director of the ARA, said it is crucial that the Labor party understands the risk small businesses are under if the proposed amendments are made to this Bill.

“The retail sector continues to face significant cost pressures, and for small businesses to survive this challenging trading environment, retailers need to open for longer hours over the weekend, to meet the demand of today’s consumers,” Mr Zimmerman said.

“The ARA are conscious that many small businesses across Australia are unable to rely on trade during the week as many consumers are at work during retail trading hours.”

The ARA have listened to their members and have identified that many small businesses are unable to afford opening their doors during the weekend.

“If retailers are limited to only opening their doors during the week, many consumers will shift their spending online, leaving our local retailers in the dark,” Mr Zimmerman said.

“For small retailers to compete in such a competitive market, retailers need to be given the opportunity to grow and prosper.”

The Penalty Rates Decision has been ruled by the Full Bench of the Fair Work Commission (FWC) and upheld by five judges of the Federal Court as these independent bodies have identified that the reduction in penalty rates would lessen the strain on Australian retailers, put the unemployed back into the workforce, and increase trading hours across the country.

“Any plan to overturn such a progressive decision in Australian history, will undermine the integrity of the independent umpire, and cause serious negative impacts to the prosperity of small and large businesses across the country,” Mr Zimmerman said.

“It is time for all Senators to put the community first, oppose Labor’s proposed amendments, and ensure the longevity of retail.”

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.

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THE Australian Small Business and Family Enterprise Ombudsman has welcomed the Prime Minister’s announcement of a Royal Commission into the banking sector.

Ombudsman Kate Carnell said she hoped the inquiry would examine past cases where small businesses had been unfairly treated.

Ms Carnell said her Small Business Loans inquiry earlier this year had identified numerous cases where small businesses had suffered from questionable conduct.

“The asymmetry in power between the banks and small businesses, together with the conduct of banks particularly since the global financial crisis in 2008, has left many small businesses in a devastating financial position,” she said.

“Many have lost their businesses as well as their family homes, with no prospect until now of obtaining access to justice.

“I’ve been concerned that in some cases there may have been unconscionable behaviour by the banks and this should be examined in the Royal Commission.”

Ms Carnell said there had been significant progress in the past few years towards changing the behaviour of banks, including Unfair Contract Terms legislation and the establishment of the Australian Financial Complaints Authority.

“What’s been missing is the capacity to review past disputes and award compensation,” she said.

“It’s not acceptable that banks called in loans where repayments were up to date.

“Businesses were forced to close, people lost their jobs and entire communities suffered adverse impacts.

“The contract clauses were so one sided there was no constraint on the banks to stop them foreclosing on loans that didn’t fit their risk profile.”

Ms Carnell said the Small Business Loans Inquiry heard cases that clearly showed banks deliberately employed systematic poor and unreasonable behaviour to terminate business loans.

The power imbalance meant small businesses had been denied access to justice.

“Many settlements occurred under duress because borrowers had little choice but to accept the bank’s offer,” she said.

“They could not refinance because cash resources had been drained, they were facing penalty interest and had no negotiating power.

“I hope the Royal Commission probes these past cases and recommends compensation for those who were unfairly treated.”

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THE Joint Committee of Public Accounts and Audit has launched its second inquiry into Commonwealth procurement as part of its examination of Auditor-General’s reports.

Committee Chair Senator Dean Smith said improving the effectiveness of Commonwealth procurement has been a key focus of the Committee over this Parliament.

“The Committee’s inquiry will examine the procurement of the National Cancer Screening Register, and management of the Inland Rail Program’s pre-construction phase and contract for Telephone Universal Service Obligations,” Senator Smith said.

The Committee is also inquiring into Auditor-General’s Report No. 5 (2017-18), Protecting Australia’s Missions and Staff Overseas: Follow-on.

As Parliament’s joint public administration committee, the JCPAA scrutinises the governance, performance and accountability of Commonwealth agencies and has the power to initiate its own inquiries on the Commonwealth public sector.

The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

The Committee invites submissions to the inquiries, addressing the terms of reference. Submissions are requested by Thursday, 25 January 2018, with public hearings to be held from February 2018. Further information about the inquiries can be accessed via the Committee’s website.

The Committee’s second Commonwealth procurement inquiry is based on the following Auditor-General’s reports:

·         Auditor-General’s Report No. 9 (2017-18), Management of the Pre-construction Phase of the Inland Rail Programme

·         Auditor-General’s Report No. 12 (2017-18), Management of the Contract for Telephone Universal Service Obligations

·         Auditor-General’s Report No. 61 (2016-17), Procurement of the National Cancer Screening Register

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

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ACORNS Grow Australia, one of Australia’s successful fintechs, has welcomed today’s announcement that there will be a Royal Commission into in the banks.

George Lucas, Managing Director, Acorns Grow Australia, said, “We believe an inquiry into the banking industry may help the government achieve its goal of encouraging financial innovation in Australia and the associated positive result for all consumers. We hope this inquiry will aid in levelling the playing field in financial services. To have a strong banking industry doesn’t mean that the banks need to dominate in every financial service offered to the Australian public.”

Acorns Australia has seen rapid growth in 2017 as Australians look for alternative ways to save and invest. The company now has over a A$140 million funds under management and over 350,000 signups. Providing inexpensive access to automating savings, investing and improved financial literacy. Since launch users are generating an average return of 13.3% p.a.*

* From Feb 2016 – October 2017, the average user return is 13.3% p.a. after all fees (but before the $1.25 maintenance fee a month -calculated using IRR methodology) – past performance is not a guarantee of future performance.

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THE Australian Retailers Association (ARA) believe books are high on the wish list this Christmas, with the ARA and Roy Morgan Research predicting Australians to spend over $7 million on ‘Other retailing’ during the Christmas trading period from November 15 to December 24, 2017.

The ARA believe physical and online books will be a big driver in the ‘Other retailing’ category with ARA and Roy Morgan Research projecting a 3.96% increase in sales for this category during the festive period.

The ARA’s Executive Director, Russell Zimmerman said book retailers should be prepared for a rise in sales as Dymocks’ recent Omnipoll has revealed almost three quarters (73%) of Australians love reading a good book, and a further 60% love receiving books as gifts.

“With only five weeks until the big day, we have learned that books are big this Christmas, with Dymocks’ latest survey revealing 57% of adults – roughly 10.4 million people - thinking of placing a book or two under the Christmas tree this year,” Mr Zimmerman said.

“The survey also revealed that parents love to give the gift of reading, as two thirds (65%) of Australians will be wrapping up a book for their child or family friend this Christmas.”

Sophie Higgins, Head of Marketing and Merchandise at Dymocks, said there has been a seasonal surge in non-fiction titles this year with non-fiction books accounting for 50% of Dymocks sales in the weeks leading up to Christmas.

“Cookbooks and biographies are the most popular of the non-fiction category, with cookbook sales usually doubling during the festive season,” Ms Higgins said.

“Celebrity chefs are leading the way this Christmas, with plenty of new books to choose from including the famous Matt Moran, Donna Hay, Jamie Oliver, Nigella Lawson, and Poh Ling Yeow.”

With many Australians cooking up a storm this Christmas, Ms Higgins said 2017 has also been a big year for new biographies, with Jimmy Barnes releasing his new book, Working Class Man, earlier this year.

“It’s also been a big year for sport fans with new biographies on Muhammad Ali, Nick Riewoldt, Luke Hodge, and Jelena Dokic hitting the shelves this Christmas,” Ms Higgins said.

To view the ARA and Roy Morgan’s Annual Pre-Christmas Sales Predictions for 2017 please click here. 

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.

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THE Queensland Resources Council (QRC) has welcomed the decision by Shell’s $1.7 billion QGC project Charlie to inject up to an additional 90 petajoules (PJ) of natural gas annually to Australian homes, businesses and LNG customers.

QRC Chief Executive Ian Macfarlane said the announcement coincided with the opening of Charlie in the Surat Basin which includes gas wells, pipelines and a gas compression station.

“Charlie created 1600 regional jobs during construction and today’s announcement will see enough natural gas flowing from the project to meet close to half of Queensland’s daily demand,” Mr Macfarlane said.

“Charlie is yet another example of a successful investment into regional Queensland by the resources sector, where state and local governments and farmers support the gas industry, resulting in massive economic benefits for local and state governments as well as farmers and rural and regional communities.

“Queensland’s neighbours must take a leaf out of our book, instead of relying on our state to meet the gap caused by their failure to develop their own gas industries. Gas exploration has stalled in New South Wales, Victoria and the Northern Territory, despite the fact all jurisdictions have their own reserves in the ground.

“According to the ACCC’s own data one PJ is enough gas to supply Wollongong or Penrith or one large industry user for a whole year.

“Shell’s QGC business will add $1.2 billion to the Chinchilla economy over the next 25 years and state wide the gas industry’s contribution to Queensland in 2016/17 was $8.9 billion, supporting 42,938 jobs and spending $3.4 billion in local businesses and community organisations.”

www.qrc.org.au

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