THE impact of Brexit on regional growth and the current obsession with monetary policy are amongst the threats to the global banking and financial sector likely to dominate discussion at a major international conference on banking stability be held in Sydney later this month.

The Banking and Financial Stability Conference, hosted by the University of Sydney Business School, will bring together senior representatives of the US Federal Reserve Bank, the Reserve Bank of Australia, the Australian Prudential Regulation Authority, the Bank for International Settlements and The Bank of Finland.

Leading Banking and Finance experts from London’s Cass Business School; Haas School of Business, UC Berkeley; ANU; New York University; Fordham University; UNSW; Monash; the University of Melbourne and NZ’s Victoria University will also take part. 

“The pull-back in bank lending to the Asia-pacific by global but in particular European banks can be expected as a result of Brexit and this is a major concern for the region’s investment and growth,” said Conference Co-chair, Associate Professor Eliza Wu. “This trend started with the GFC continued into the European debt crisis and now with Brexit.”

Associate Professor Wu went on to say that “enhancing financial stability in the face of unprecedented monetary policy regimes that have been implemented around the world and the new risks that have developed within the global financial system will remain a major challenge for policy makers and a concern for those attending the Sydney Conference”.

“The most immediate concern is the increased level of uncertainty and volatility expected and experienced in the international financial markets due to the Brexit vote,” added Co-chair, Professor Suk-Joong Kim. “Brexit has cast doubt over London as the world’s most important financial centre and the future of the international banks that operate there.”

Conference Details:

Date:               Tuesday 12^th July 2016

Time:               8.00 AM to 5.40 PM (Conference Program below)

Venue:             University of Sydney Business School

                        Abercrombie Building, Cnr Abercrombie and Codrington Streets, Darlington

Contact:           Trevor Watson 02 9351 1918 or 0418 648 099

Further information

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

Conference Program:

8.15-8.30  Conference Opening and Dean’s Welcome – Professor Gregory Whitwell

8.30-9.25  Dr Eli Remolona, Chief Representative for Asia and the Pacific of the Bank For International Settlements The rise of regional banking in Asia and the Pacific

9.25-10.20  Professor Thorsten Beck, Professor of Banking and Finance, Cass Business School, City University London Lending Concentration, Bank Performance and Systemic Risk.

10.35-11.30 Professor Kose John, Charles William Gerstenberg Professorship in Banking and Finance, New York University & Laura H. Carnell Professor of Finance, Temple University Interstate Banking, Bank Information, and Corporate Acquisitions

11.30-12.30 KEYNOTE ADDRESS: Dr Loretta Mester, President and CEO, Federal Reserve Bank of Cleveland Financial stability Considerations for Monetary Policy

1.30-2.30 KEYNOTE ADDRESS: Dr Luci Ellis, Head of Financial Stability Department, Reserve Bank of Australia Financial Stability and the Banking System

2.30-3.25  Professor Kevin Davis, Professor of Finance, University of Melbourne & Monash University & Australian Centre for Financial Studies Hunting the BIRP: Is there a Bail In Risk Premium in Australian bank hybrids?

3.40-4.35 Professor Nadia Massoud, Ian Potter Chair of Finance & Associate Dean of Research, Melbourne Business School Why and How Do Banks Lay off Credit Risk? The Choice between Retention, Loan Sales and Credit Default Swaps

4.35-5.30 Professor Iftekhar Hasan, Professor of Finance and Corrigan Chair in International Business and Finance, Fordham University & Scientific Adviser, Bank of Finland The real impact of Basel ratings-based capital rules on the finance-growth nexus

 ends

NEXT week, Independent Senator, Nick Xenophon has been confirmed to speak at the Council of Small Business of Australia’s (COSBOA) Vodafone National Small Business Summit in Brisbane, 6 – 8 July.

A vocal small business advocate, Xenophon is set to speak at the Summit Lunch on Friday 8 July from 12.45pm – 2.30pm, where he will discuss the vital role small businesses play in strengthening Australia’s economy, culture and diversity.

Xenophon says, “As Australia's largest employing sector, small business makes a significant contribution to Australia’s economy. All Australians should be encouraged to develop their own niche and/or nurture and grow their own enterprises. Government must play an integral role in fostering small business growth and in doing so reduce bureaucratic obstacles.”

The premier policy event for small business representatives, government and industry leaders, other Summit attendees and speakers include Minister for Small Business and Assistant Treasurer, the Hon Kelly O’Dwyer MP, Australian Small Business and Family Enterprise Ombudsman Kate Carnell, Fair Work Ombudsman Natalie James and Acting Commissioner for the ATO, Neil Olesen, plus many more ministers, policy makers and business leaders from global brands such as Vodafone, Google and American Express.

The summit will be officially opened at the Summit Start Up, on the evening of Wednesday 6th July, by Greg Tonner, CEO of the North Queensland Cowboys.

Program highlights include:

Thursday 7th July

• Who are the innovators?
  • Andrew Chanmugam, General Manager of Enterprise & Business at Vodafone Australia, will be joined by Robert Gerrish, Founder of Flying Fish for a panel discussion and Q&A to uncover who are the innovators in small business
• Mental health of the small business owners
  • Nick Arvanitis, Head of Research & Resource Development at Beyond Blue and Leanne Faulkner from COSBOA’s Heads Up Campaign will talk about the critical need to address the mental health of small business owners
• Case Study: Australia Made Campaign
  • Ian Harrison, CEO, Australian Made Campaign, will discuss leveraging country-of-origin branding, which can provide Australian small businesses with a powerful competitive advantage, both in Australia and overseas markets
• Fair Work Ombudsman introduction and session: Contractor or employee?
  • Natalie James, the Australian Fair Work Ombudsman will talk exclusively about penalty rates, employment and the government's roles for small business

Friday 8th July  

• Critical Business Infrastructure
  • Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director at Vodafone and Martin Southgate, Head of Audience Strategy at ABC Regional get to the bottom of the issues of critical business infrastructure
• Regulator Update
  • Dr Michael Schaper, Deputy Chair at the ACCC provides an industry update at this exclusive plenary session
• Case study: How NOT to deal with small business
  • In a switch on the traditional format, learn from Mathew Munro, Executive Director, Australian Livestock and Rural Transporters Association and Kate Carnell, Australian Small Business and Family Enterprise Ombudsman about how not to deal with small businesses

To register for the Summit, visit: www.nationalsmallbusinesssummit.com.au

ends

TODAY, Council of Small Business of Australia (COSBOA) expressed its concern about the election status, which is creating uncertainty. In particular, the lack of facts presented in the arguments of the Labor Party.

Over the course of the campaigning period promises have been made, but COSBOA is concerned that Labor has won votes on false arguments and information, particularly around penalty rates and competition policy, says the association’s CEO, Peter Strong.

“We are concerned that the Labor Party is embracing the needs of a few big unions and their big business partners, where most union members are to be found,” said Mr Strong.

Left unchecked, big business and the Shop Distributive and Allied Employees’ Association (SDA), a trade union representing workers across the retail, fast food and warehouse industries, will see Australia’s productivity and standard of living fall, warns COSBOA.   

Last month, it was ruled by the Fair Work Commission (FWC) that the SDA organised for its partner companies to pay lower than award rates on weekends to help subsidise its members who work during the week, leaving students and other weekend workers, who are desperate for extra income, out in the cold.  It also meant that the only people who pay high penalty rates on weekends are small business people.

Mr Strong continues: “Why a two tiered workplace relations system? It’s because the unions continue to influence policy to their favour, thereby meaning the ALP continues to support big business, even though that’s to the detriment of everyone else – employees and small businesses.”

COSBOA also adds that it’s not just the SDA guilty of influencing the Government to pander to the needs of big business; it’s also the likes of the Transport Workers Union (TWU), which has most of its members in two major transport companies, Toll Holdings and Linfox.

Mr Strong adds: “These two companies are intent on forcing owner drivers off the road, through actions such as the Contractor Driver Minimum Payments Road Safety Remuneration, which sets national minimum payments for certain contractor drivers in the road transport industry, specifically small business people, making competition even more difficult.”

COSBOA is also aware that the CFMEU (the construction union) is well connected with non-Australian construction companies - Multiplex, John Holland Group, CIMIC (Leighton) - who want to limit access to work by sub-contractors and non-union labour.

“Interestingly, if the ALP embraced some good small business policies, changes to competition law, such as enacting the Effects Test, and increasing the threshold for definition of a small business to $10m straightway, then there is a good chance they would have picked up a few more votes and formed government. 

“Instead, they’ve followed Union orders, which does not give all ‘a fair go’ or act in the spirit of competition. Let’s hope the ALP revisits their small business policies, lest they fail the economy and fail workers,” finished Mr Strong.  

This week, 6–8 July, these issues will be raised with small business representatives, government and industry leaders in Brisbane at the COSBOA’s Vodafone National Small Business Summit.

The premier policy event will ensure that the voice of small business is heard and work to safeguard this community of more than 3 million small businesses, making sure the needs of small business people are front and centre.

For more information visit: http://www.cosboa.org.au

ENDS

THE AUSTRALIAN Retailers Association (ARA) chief executive, Russell Zimmerman, has outlined the key aspects of policies put forward by the major parties in relation to retailing. He has asked retailers to consider these carefully before casting votes on July 2:

AUSTRALIA needs a stable majority Government with a solid economic plan, which will support all retail, large and small.
 
The instability and compromise brought by a minority Government does not create the certainty business and consumers need to ensure they have confidence to invest or spend, as witnessed after 2010. This, as in the last election, remains the biggest single risk to the Australian economy and the retail sector as the economic ‘canary in a coal mine’.

Given the economic headwinds we have been facing for some time, the ARA recommends retailers vote for the political party they believe will provide clear economic leadership for the next three years.
 
As we enter the polling booths on Saturday, I encourage retailers to think about who will do the best job freeing up the economy and getting retailers and the business sector on track.
 
As a measure of how the major political parties sit and the demands under a minority government, the ARA has outlined a number of economic positions for the retail sector to assess who has the strongest economic plan for the country. No political party is promising a short term return to budget surplus.
 
The Coalition economic plan remains based on the Federal Budget announced in May
 
The plan is built around Tax and Superannuation Reform which supports tax cuts, commencing with small business and increasing to larger companies over the forward estimates along with personal tax threshold changes.

• A Coalition Government will reduce the company tax rate for businesses with a turnover of less than $10 million in a year to 27.5 per cent, beginning on 1 July 2016
• The Government will commit to reduce the company tax rate for all companies to 25 per cent by 2026-27 which drives investment, jobs and increased revenue
• This will be done by gradually increasing the threshold at which the 27.5 per cent rate begins, from $10 million in 2016-17 to $1 billion in 2021-22. In 2023-24 the tax rate for all companies will be reduced to 27.5 per cent, decreasing yearly by 0.5 per cent until 2026-27; and
• Provides an unincorporated small business discount to be available to businesses with an annual turnover of less than $5 million, an increase in the threshold from $2 million. The rate of the unincorporated small business discount will be increased to 8 per cent, and gradually increased over the next 10 years to 16 per cent
• As part of the Superannuation Tax Reform Package, the Turnbull Government has announced a $1.6 million superannuation transfer balance cap for individuals transferring into retirement phase accounts; the lowering of superannuation concessional contributions cap to $25,000 in a single year; and a low income superannuation tax offset for those earning a taxable income of less than $37,000 per year. People in this income bracket will receive an effective refund of their tax paid on their concessional contributions of up to $500
• A Coalition Government has made changes to the tax levels for individuals and businesses as part of its 10 Year Enterprise Tax Plan: In personal income tax, the 32.5 per cent marginal rate tax threshold will be increased from $80,000 to $87,000, effecting approximately 500,000 Australians.

The Coalition announced a Youth Jobs PaTH which will involve three stages as skills support:

• Employability skills training will begin on 1 April 2017 to help prepare young job seekers for the workplace. The training will help young people better understand what employers expect of them and give them the skills, attitudes and behaviours required to be successful in a job
• From 1 April 2017, up to 30,000 young job seekers each year will be eligible to undertake an internship placement of 4 to 12 weeks. The internships will be voluntary and provide incentives of $1,000 upfront to a business to host an intern and a $200 fortnightly payment to job seekers on top of their income support
• From 1 January 2017 a Youth Bonus wage subsidy of between $6,500 and $10,000 will be available to businesses who take on an eligible young person as an employee or apprentice.

Employment law remains a major issue for the retail sector, with the Coalition making a commitment to support the independent arbitrator as being the body to assess issues such as penalty rates.
 
Part way through the campaign Federal Labor announced a 10 year economic plan
 
The announcement indicated a Federal Labor Government will support the transition of the Australian economy and identify opportunities to make investments that will drive innovation and local jobs in advanced manufacturing, renewable energy and services.
 
The economic plan indicates a Federal Labor Government will build a strong education system by investing in schools, TAFE, and universities.
 
The plan also outlines that a Federal Labor Government will invest in infrastructure such as roads, rail, and a first rate National Broadband Network.
 
The plan highlights the uncertainty which surrounds a changing labour market – with the decline of the mining investment boom, climate change and the impact of technology.
 
The economic plan released by Labor outlines six key areas which address the challenges of the changing market and seek to drive productivity by:

1. Investing in people – A Federal Labor Government will improve the quality of education and training, to ensure Australians are prepared for jobs of the future that meet market demands
2. Building Australia – A Federal Labor Government will invest in roads, rail and the NBN in order to create jobs and improve the liveability of Australia’s cities and regions
3. Driving investment in renewables and new industry – A Federal Labor Government will focus on creating jobs in manufacturing and attracting investment in renewables
4. Supporting innovation and start-ups – A Federal Labor Government will provide tax relief and support for start-ups in order to create jobs and drive innovation
5. Helping small business – A Federal Labor Government will deliver tax cuts to small businesses and provide support when competing in the marketplace
6. Budget repair that's fair – A Federal Labor Government will support middle and working class families by providing targeted tax concessions. A Federal Labor Government will also encourage greater female participation in the workforce.

Labor has also announced a number of additional economic measures during the campaign including:

• A Labor Government will provide small businesses with a tax break of up to $20,000 if they hire a parent returning to work, a carer or Australian under 25 or over 55. The tax break would offset the wages of up to five new employees
• Businesses that have been in existence for two or more years and with a turnover of less than $2 million will be able to claim a 40 per cent deduction on top of the amount they can currently claim for their employees. This will decrease the small business company tax rate to 27.5 per cent
• A Labor Government will set the capital gains discount on all asset sales from 1 July 2017. This means that assets held for longer than 12 months will attract a 25 per cent capital gains discount, lowered from the current 50 per cent. This proposed policy will not affect investments made by superannuation funds. Further, the capital gains tax discount will not change for small business assets
• A Labor Government will limit negative gearing from 1 July 2017 to only new houses. Labor’s fiscal plan indicates that changes to negative gearing and capital gains will deliver $7 billion in savings by 2026.

As part of Labor’s jobs and skills program, job seekers will take part in:

• A six week work readiness course focusing on essential employment skills as well as personal presentation, interview techniques and job hunting
• A six month work placement with an employer, paid at an award equivalent training wage
• A fully funded Certificate III in a subject of their choice.

Labor publicly opposed any change to penalty rates and has said it would submit that position to the independent arbitrator, they have also said they would not seek to overturn a decision by the independent arbitrator.
 
In the event of a minority Parliament there are multiple demands on Government
 
Whoever deals with various independents and minor parties will need to take on many of their policy positions. As an example two of the most likely king making groups have outlined the below positions.
 
The Greens, the seat of Melbourne is currently held by Greens MP Adam Bandt who has held the seat since 2010. The Greens may also win the seat of Batman, currently held by the ALP’s David Feeney, with the chance some Sydney CBD seats could also be in play. The Greens policies include:

• Enforcing a 90 percent clean energy target by 2030 and installing a ban on new coal mines and fracking projects
• Investing $1.2 billion in the Great Barrier Reef Repair Loan Facility and introduce a cap on water quality pollution
• Fund a $5 million campaign to promote the Clean Energy Finance Corporation
• Increasing the number of Family Reunion visas for migrants to 10,000 per year
• A 20 percent tax levied on sugary drinks
• Developing a needs-based school funding system and maintaining the National Education Reform Agreement through COAG
• Minimising production of nuclear energy and exports to stall the generation of nuclear waste
• Increasing welfare provisions through Newstart, Youth Allowance, and Rent Assistance; and
• Supplying families with 24 hours of Early Childhood Care a week.

Nick Xenophon Team (NXT), the South Australian Senator Nick Xenophon’s NXT party, may also gain seats in the House of Representatives. Possible seats include Grey (contested by Andrea Broadfoot), Mayo (contested by Rebekha Sharkie), Hindmarsh (contested by Daniel Kirk), Adelaide (contested by Joe Hill), and Wakefield (contested by Richard Inwood). NXT’s policy priorities are:

• Advocating preferential engagement with Australian suppliers for Commonwealth Government contracts, introducing stricter labelling laws for Australian-made products and tightening anti-dumping laws for imports
• Looking at regulation of retail gift card schemes
• Introducing for greater legal protections for whistle blowers and conducting a Royal Commission to the Financial Services Sector
• Supporting the raising of the Small Business Threshold from $2 million to $10 million and introducing targeted tax breaks for small business in the first two years of operation
• Introducing a best-practice Emissions Trading Scheme
• Lowering the current Foreign Investment Review Board investment threshold to increase vetting of foreign investments and introducing stricter investment laws
• Expanding the scope of gambling laws to restrict predatory gambling and gambling advertising.

With the ARA’s role to support the prosperity of the retail sector, we have been encouraged that some of the ‘Top 10 in 10’ we have co-developed with the Australian Chamber of Commerce and Industry have been taken on board by both major Political groupings.

There are no decisions more important than those we make about our future government. I would encourage all retailers to consider the best outcome for their economic prosperity which in turn will drive the social outcomes we all desire.

- Russell Zimmerman, June 30, 2016.

TWO site visits, over 15demonstrations, and a Knowledge Theatre with up to 30 presentations are making up CeMAT Australia 2016, which is taking place July 12-14, a not-to-be-missed educational experience.

The event provides the opportunity to see the big systems in action, find out what is working for the industry and what the future holds, and what you can learn from these systems.

The site visits at CeMAT Australia, include tours of Fastline, a leading 3PL in Australia and one of the most advanced fashion distribution centres, and Australia Post, which revamped its systems with the support of Vanderlande’s (a CeMAT exhibitor) innovative CROSSORTER. A team from Australia Post will be sharing stories of some of the challenges they experienced when updating their parcel processing network, while Fastline employees will provide insights into a company which will soon be home to the biggest shuttle system in the southern hemisphere.

In addition, the event will feature more than fifteen demonstrations, with leading companies showing their big machines in action. The demonstrations will feature machinery from big names such as Dematic, with automated robotic picking, FMCG industry solutions, and a new dirt capturing system among others.

The centrepiece Knowledge Theatre, which spans all three days of the event, will feature talent including Michael Kilgarrif, Managing Director of Australian Logistics Council and Secretary General Olivier Janin of FEM (European Materials Handling Federation).

Topics covered will range from technology trends, to thermal comfort issues in a working environment, and economical material solutions to save money.

CeMAT will be hosting experts and peers from across the globe who will be available for networking opportunities as they share their own successes and trials, and ideas for how attendees can take their company’s innovation to the next level.

To see what the future holds, learn from the past, and collaborate with peers, register online with CeMAT.

The CeMAT exhibition, which includes access to the Knowledge Theatre is free to attend by registering online. Site visits are an additional cost of $95, include a plus one and booking is essential.

For more information visit www.cemat.com.au

ends

THE Council of Small Business of Australia (COSBOA) is urging Small Business owners and their employees to be aware of the consequences of their vote at the Federal Election this weekend, Saturday 2 July 2016, with some policies having the potential to have far reaching effects on small business.

Paul Nielsen, Chairman of COSBOA emphasised the importance of voters understanding the policies they are supporting rather than focusing on the politicians.

“Every vote counts. Small Business owners and employees need to be aware of the policies they’re supporting when they place their vote this weekend, especially when it comes to policies that don’t just affect the economy, but our entire country’s cultural fabric.

“Each party has policies that impact smaller private or family owned businesses, and these impacts may be felt for the next 20 years, so it’s imperative people understand what they are really voting for,” says Mr. Nielsen.

COSBOA outlines the top three core initiatives to be aware of:

Strengthen competitions laws by enacting the Effects Test

To allow small businesses to prosper and grow, in turn driving the economy and job creation, there must be a level playing field, which prevents big companies from dominating the market. The so called changes to Competition Policy, specifically Section 46 of the Competition and Consumer Act – The Effects Test - needs to be enacted as soon as possible, to hold big business accountable when they deliberately misuse their market power.

“Without the Effects Test there’s little to stop big businesses becoming bigger, and smaller businesses fewer, which is detrimental to Australia and to consumer choice,” says Mr. Nielsen.

Extend benefits for businesses with turnover under $2M to $10M

Currently a small business is defined as an entity with an aggregated turnover of less than $2 million, but this needs to change, says COSBOA.

“This $2 million figure was relevant ten years ago but not today. A business which was turning over $2 million then, could now be turning over $4 - $5 million, but grown minimally – thus it is still a small business, which requires Government encouragement for future growth,” says Mr. Nielsen.

Increasing the threshold would help some 870,000 businesses, who employ around five million Australians.

To see small businesses thrive, the Government of the day needs to support them by tax rate cuts from 28.5% to 27.5% and allow instant write-offs of many expenses, especially when setting up a new business.

“By cutting red tape and making it easier for small businesses to operate, billions of dollars per year could be saved,” says Mr. Nielsen.

Abolish the Road Safety Remuneration Tribunal

The Road Safety Remuneration Tribunal needs to abolished says Mr. Nielsen.

“With this tribunal in place, many truck owner/drivers would be driven out of business. The initiative would lock them into union determined freight charges that now only apply to major trucking companies,” he says. Ultimately freight costs will increase for all businesses.

Since the 2013 Election, COSBOA has been instrumental to the growth of small business across Australia, shaping policies and lobbying Government. Some of the highlights achieved, include the appointment of the Small Business and Family Enterprise Ombudsman, stronger protections for small businesses against unfair contact terms, $1.1 billion package of incentives to help businesses of the future get off the ground and the cutting of ‘red tape’ to make business operation easier.

“Small businesses are the backbone of the economy and are a part of our daily lives.  When voting on Saturday, we want Small Business owners and their employees to make an informed decision and COSBOA is dedicated to making the facts unambiguous without the politics,” Mr. Nielsen concluded.

For more information visit http://www.cosboa.org.au/election-2016/

From 6 – 8 July, the Council of Small Business of Australia (COSBOA) will host its premier policy event for small business representatives, government and industry leaders in Brisbane – the Vodafone National Small Business Summit. The Summit will ensure that the voice of small business is heard and safeguard this community of more than 3 million small businesses, making sure the needs of small business people are front and centre.

ENDS

THE chief executive of the Queensland Resources Council (QRC), Michael Roche, has announced his intention to step down later this year, after more than 11 years in the role.

Mr Roche joined the QRC as chief executive in July 2005, after a distinguished career in the government and private sectors. He said now was the right time to move to the next stage of his career. 

‘It has been a great honour to be able serve the great Queensland resources sector over such an extended period at the helm of its peak body. The sector comprises wonderful people and hundreds of great businesses – large, medium and small - which deliver so much employment and wealth for our state,’ Mr Roche said.

‘The QRC is a great organisation with a very talented team that continues to deliver excellent service to the resources sector through some truly challenging times in recent years.’

Mr Roche said he had no intention of disappearing off into the sunset.

‘I enjoy my current non-executive board work and hope to do more of this. I also believe there is an opportunity to share my knowledge, expertise and experience built up over the past nearly 40 years, in a consulting capacity,’ Mr Roche said.

‘I am also keen to do more to assist the state’s charities and not-for-profit sector.

‘There is however no hiding the fact that the QRC chief executive role is a very demanding seven days a week commitment. I certainly look forward to also having more time with family and friends.’

QRC president Stewart Butel paid tribute to Mr Roche’s contribution over the past 11 years. 

‘Michael’s skills and commitment as an advocate for the Queensland resources sector and as a leader of a great Queensland organisation are second to none,’ Mr Butel said.

‘Michael is leaving big shoes to fill.’

Mr Butel said it was very much business as usual at the QRC, with Mr Roche committed to staying on to provide a suitable handover to a new chief executive, most likely in November 2016.

A recruitment process for Mr Roche’s successor is now underway, with international executive search firm Egon Zehnder having been retained by the QRC Board.

www.qrc.org.au

ends

THE Queensland Resources Council (QRC), has called on Queensland Rail (QR) to accept the Queensland Competition Authority’s final decision on QR’s Draft Access Undertaking.

The decision rejects QR’s proposal and requires it to submit a new document by 16 August.

'QR needs to accept the umpire’s decision, move on from the regulatory process and get back to the core business of improving the performance and long-term utilisation of its railways as soon as possible,’ said QRC's Chief Executive Michael Roche.

‘QR’s approach to this process has resulted in four years of delay and uncertainty, which has in turn undermined investment confidence in Queensland and seriously eroded the attractiveness of investing in the Darling Downs region.’

QRC's March 2016 submission to the QCA sets out just some of the many extra regulatory steps that have been created by QR’s approach to this process.

Mr Roche said that the cost of this process now runs into many millions of dollars, much of which will be borne by taxpayers, as the ultimate owners of QR – a cost that will be further exacerbated if QR seeks to judicially review the Authority's decision.

‘QRC is calling on QR to bring this process to an end immediately,’ said Mr Roche. 

‘Going forward, we support the review of the QCA Act currently being contemplated by the Government. The QR experience demonstrates the need to improve the Act so that processes are not delayed by, and millions spent on, debates regarding whether the QCA has, or does not have, the power to make reasonable decisions.’

In QRC’s March submission, QRC called on the regulator to make a final decision and we welcome the news that our advice has been heeded. 

‘In February, two Queensland energy GOCs needed a direction from the shareholding Minister to accept a regulator's decision. Now is the time for QR to listen to its customers, accept the reality of the final outcome of a thorough QCA investigation, and immediately confirm its intention to accept the umpire’s decision,’ Mr Roche said.

‘If QR refuses to accept the QCA’s decision, then the responsible Ministers (the Transport Minister and the Treasurer) need to step in and put an end to QR’s intransigence.’

www.qrc.org.au

ends