THE Joint Committee of Public Accounts and Audit has tabled its report on Commonwealth Infrastructure Spending based on the Auditor-General’s reports No. 14 (2015–16) Approval and Administration of Commonwealth Funding for the East West Link Project and No. 38 (2016–17) Approval and Administration of Commonwealth Funding for the WestConnex Project.

The inquiry highlighted the important role Infrastructure Australia plays in assessing infrastructure projects and determined that departing from full assessments of the East West Link and WestConnex projects reduced the evidence bases for decision-making, including full business cases.

The Committee concluded this approach is best avoided given the scale of public funding and the risks involved in infrastructure projects.

The Commonwealth contributed $1.5 billion in payments to both the East West Link and WestConnex projects as well as providing a $2 billion concessional loan for WestConnex.

The Committee noted the Department of Infrastructure and Regional Development provided advice to the Government on various matters in the lead-up to funding decisions but was concerned at the Department’s lack of consideration of some issues in designing and negotiating the WestConnex loan.

The Committee was also concerned about the Department’s project payments and management of milestones.

Committee Chair Senator Dean Smith said the Department needed to give greater consideration to each of the concessions and risks involved in designing Commonwealth concessional loans and include this in its advice to decision-makers.

“The Department needs to better protect the Commonwealth’s interests when managing milestones to provide genuine incentives for funding recipients to progress projects and reduce the likelihood of payments being made too far in advance of need and delivery,” Senator Smith said.

The report makes five recommendations to the Department of Infrastructure and Regional Development, including:

• providing clear advice to Ministers on whether the requirements of land transport legislation have been met;
• only making significant payments when they are required by a project and meet agreed milestones, and advising Ministers of any interest charges, other costs and risks arising from advance payment proposals;
• requiring loan proponents to identify alternative funding strategies and justify why a Commonwealth loan would be the best funding option;
• reviewing the Department’s approach to drafting project approval instruments to identify relevant risks and incorporate mitigations; and
• reviewing the Department’s infrastructure IT system to improve its recording of milestones, the quality of data it receives from project delivery agencies and capturing more specific expenditure data.

Two further recommendations made by the Committee include:

• the Auditor-General consider a follow-up audit of the Department of Infrastructure and Regional Development’s administration of a concessional loan to the Sunshine Coast Airport expansion project; and
• Treasury review the funding recovery provision in the Federal Financial Relations Act 2009 to consider the suitability of the current discretion applied to recover funding as well as the current inability to recover interest earned on unspent National Partnership payments.

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

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THE anti-gas green activist campaign has hobbled development in the southern states and is a significant factor in pushing electricity prices up, Queensland Resources Council (QRC) chief executive Ian Macfarlane has claimed.

"Yesterday the federal government made the extraordinary announcement that it would intervene in the free market due to a shortage of gas in the east coast market, which has led to skyrocketing power bills for households and businesses," Mr Macfarlane said.

Mr Macfarlane said it was mind-boggling that foreign- funded green activists had influenced energy policy in New South Wales, Victoria, South Australia and the Northern Territory, leading to gas shortages, blackouts and electricity prices going through the roof.

“New South Wales has excellent gas deposits that haven’t been developed because state politicians have buckled in the face of the relentless anti-gas green activist campaign,” Mr Macfarlane said.

“Short-sighted NSW only produces about 5 percent of the gas supply it needs, which means it relies on other states like Queensland for its supply so households and businesses can keep this lights on.

“While NSW is in a state of gas panic, they expect Queensland to keep sending our maroon gas molecules south to keep their lights on at ANZ stadium tonight.

“But NSW is not alone, Victoria has a moratorium on all onshore gas, the South Australian Liberal opposition has pledged a gas ban, and the Northern Territory has a temporary moratorium.”

It is important to remember the gas export hub at Gladstone was approved because there was an expectation that NSW would go ahead and develop its own gas, but due to extreme green activist campaigns, NSW gas has been left in the ground, leaving the east coast in a state of panic over out-of-control prices for electricity and gas, Mr Macfarlane said.

www.qrc.org.au

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THE House Agriculture and Water Resources Committee will hold a public hearing in Canberra on Thursday, 22 June for its inquiry into water use efficiency in Australian agriculture.

The Committee will hear from the National Irrigators’ Council.

Public hearing details: 12:15pm - 1:30pm, Thursday 22 June, Committee Room 1R2, Parliament House, Canberra

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

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

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SAFETY, employment, legal concerns, public transport, infrastructure needs, access and equity and Australia’s role in driverless vehicle technology – all topics are on the table as the parliamentary driverless vehicle inquiry holds its final public hearing in Canberra this morning.

The Industry, Innovations, Science and Resources Committee will be hearing from the Department of Infrastructure and Regional Development and the Department of Industry, Innovation and Science as it wraps up its public hearings for its inquiry into the social impacts of driverless vehicles.

The Committee has heard from 30 organisations and individual witnesses and held four inspections over the course of the inquiry.

Committee Chair Michelle Landry MP commented that members of the Committee were looking forward to being able to follow up with the two departments on some of the questions that have arisen throughout the inquiry.

“We have heard from a wide range of stakeholders – from manufacturers, regulators, industry groups, academics and many others – about the social issues relating to driverless vehicles," Ms Landry said. 

"Today we will get the chance to discuss some of the issues we’ve heard about with representatives of the Commonwealth departments responsible for infrastructure and industry and innovation.”

Public hearing details: 10.45am – 12.30pm, Wednesday 21 June, Committee Room 1R3, Parliament House, Canberra

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

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

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HOW should Brexit affect the work of Australian lawyers in the United Kingdom? At a hearing in Canberra today, the Law Council of Australia will have its say.

The Trade Sub-Committee of the Parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade will hear from the Law Council at a public hearing today for its inquiry into Australia’s trade and investment relationship with the United Kingdom.

The Law Council, which is the peak representative body for the Australian legal profession, believes the decision by the UK to leave the European Union should not diminish the current level of access for Australian lawyers into the UK and should potentially expand access.

The Law Council’s submission says any proposed trade agreement with the UK should recognise the importance of multi-jurisdictional legal services in facilitating two-way trade and investment without costly legal disputes and possible failure. It supported the free movement of legal service providers from Australia and the UK.

The submission also raises concerns that as a consequence of Brexit, Australian legal firms and lawyers may no longer be in a position to recommend their clients to set up companies in the UK under the laws of England and Wales due to the uncertainties of post-Brexit trading rules and tariffs when trading with the EU.

Public hearing details: 10:05am - 11:00am, Wednesday 21 June, Committee Room 2S1, Parliament House, Canberra

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

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

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THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has encouraged small business operators to take advantage of the Government’s instant asset write-off extension.

More businesses are now eligible to buy equipment (new or second hand) up to $20,000 and write it off immediately after legislation passed the Senate. Multiple claims can be made under the program.

Small business has also been redefined for tax purposes as having a turnover less than $10 million, up from $2 million.

Ombudsman Kate Carnell welcomed the changes.

“The instant asset write-off program enables small business to immediately deduct assets costing less than $20,000 instead of claiming deductions over a number of years,” she said.

“This is a welcome incentive for small business to invest, which provides benefits for the broader economy and employment.”

Ms Carnell said anecdotal evidence suggested only a small proportion of eligible businesses were taking advantage of the opportunity.

“I encourage small business operators to invest before June 30 and claim the tax deduction,” she said.

Assets that cost $20,000 or more can't be immediately deducted.

Ms Carnell said small businesses in some industries would generally require assets above the $20,000 threshold.

“Effectively, this means that some industries are disadvantaged,” she said.

“It makes more sense for the threshold to be raised so that all businesses can benefit, upgrade their assets and continue to grow to benefit the economy.

“I will continue to urge the Government to lift the $20,000 threshold because for some industries, like farming, it’s too low for them to purchase equipment.”

www.asbfeo.gov.au

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The Australian Retailers Association (ARA) has commended the NSW Government for delivering a Budget that focuses on infrastructure, while running a surplus in 2016-17.

ARA Executive Director, Russell Zimmerman said the NSW State Budget builds on economic strength for the state, assisting retail sales growth while supporting retail businesses and employment through continued skills funding and tax relief.

“The 2017-18 Budget released today focuses on delivering infrastructure projects that NSW communities need, with long term holes in infrastructure slowly being fixed for the first time in decades,” Mr Zimmerman said.

From January next year, businesses with an annual turnover of less than $2 million will be exempt from paying duties on insurance for work vehicles, professional indemnity and public liability.

The ARA also welcomes the increased support for the Business Connect Programme in helping small businesses to plan and adapt.

“As always, the industry needs the Government to further reduce business taxes to sustain retail growth,” Mr Zimmerman said.

“The tax cuts on business transactions is an important step for retailers making decisions to improve their operations.”

The ARA further congratulates the NSW Government for their $96 million commitment to the Jobs for NSW initiative which ARA members have participated in to stimulate jobs growth across NSW.

Retailers will also welcome stamp duty cuts with exemptions for homes worth up to $650,000, and discounts for purchases up to $800,000 for new homebuyers as these initiatives will stimulate consumer spend.

“These business cuts, along with the homebuyers’ stamp duty cuts will help grow retail spend across the industry,” Mr Zimmerman said.

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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PARLIAMENT's Joint Standing Committee on Northern Australia will hold public hearings at Airlie Beach and Hamilton Island for its inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern Australia on Sunday 25 June and Monday 26 June 2017.

The region recently bore the brunt of Cyclone Debbie and the tourism industry has rebounded and is gearing up for the 2017 season.

The Committee Chair, Warren Entsch MP, said North Queensland has bounced back after Cyclone Debbie and the Committee will be talking to the major tourism operators in the region.

“A wide variety of tourism experiences are offered in the Whitsunday Islands including island resorts and small businesses on the mainland. In the face of extreme weather events, business resilience is key to the success of an industry that is vital to the local economy,” Mr Entsch said.

The Committee will receive evidence from resort operators and small tourism operators on the mainland as well as from the region’s tourism representative bodies.

Public hearing details:

HAMILTON ISLAND: 9.45 am to 1.00 pm, Sunday, 25 June 2017, Ketch Room, Yacht Club, Hamilton Island

AIRLIE BEACH: 9.45 am to 2.35 pm, Monday, 26 June 2017, Mantra Club Croc, Shute Harbour Road, Cannonvale

The hearing will be broadcast live (audio only) at aph.gov.au/live.  

The hearing program and further information about the Committee’s inquiry, including the terms of reference is available on the Committee’s website.

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

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