THE House of Representatives Standing Committee on Economics today tabled a report on the implications of common ownership and capital concentration in Australia.

Committee chair Jason Falinski said, "The magic source of free markets is competition. It is the element above all else that promotes and provokes innovation, invention and delight in customers. There is a misconception that free markets are efficient, but this is less than half the story, what they are really good at is being dynamic, and competition is the key to that dynamism.

"The problem is that as capital markets become more concentrated, especially in Australia, that owners of capital have conflicting interests with consumers. There is an emerging field of study that is providing compelling evidence that concentrated capital is driving out competition."

Capital concentration can occur when large institutional investors dominate equity markets and influence how firms behave in the marketplace. Common ownership refers to a situation in which an investor simultaneously owns shares in competing firms.

"If financial markets are dominated by a small number of large investors, or if the same investor owns a significant stake in competing businesses, the evidence is piling up that competition suffers," Mr Falinski said. "That can lead to higher prices, lower quality goods and services, and lower relative wages — all of which are serious concerns.

"Further, the concerns of capital are not necessarily the same as the concerns of people, it is not just as consumers that we suffer, but also as employees, investors, voters, citizens and human beings."

The committee has recommended that measures be introduced to increase transparency in respect of the holdings and behaviours of institutional investors. The report also calls for Australia’s financial regulators to actively monitor capital concentration and common ownership.

Mr Falinski said, "This is an emerging issue, and some of the world’s top economic thinkers supported the committee in its inquiry. By taking steps now to empower our regulators to be proactive in monitoring and potentially responding to these phenomena, we can avoid having to deal with a larger issue in the future."

A full copy of the committee’s report is available on the committee’s website.

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THE House of Representatives Standing Committee on Communications and the Arts is holding public hearings to inquire into the adequacy of regional and local news, how the pandemic has affected the delivery news services, and suggestions on how to strengthen connections with and coverage of issues affecting regional Australia.

On Monday February 28 and Tuesday March 1, the committee will hear from a range of witnesses including government bodies, major media companies, academics, regional newspapers, and regional and remote local councils.

Chair Dr Anne Webster MP said, "The committee is keen to hear a range of views on the effects of the pandemic on the delivery of news services in regional areas, the effect of the News Media Bargaining Code particularly on small publishers and the impact of suspending the publication of print editions in regional communities.

"The hearings will provide an opportunity to consider all viewpoints, discuss key issues and importantly find potential solutions to maintain locally produced journalism and strengthen tailored news coverage of regional Australia."

Public hearing details

Date: Monday, 28 February 2022
Time: 10am to 5.15pm (AEDT)

Date: Tuesday, 1 March 2022
Time: 10am to 5pm (AEDT)

A full program for the committee’s hearing is available on the committee’s website here.

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HESTA has reached a key milestone, with its in-house Australian Equities team actively investing as the $68 billion industry superannuation fund embarks on the next phase of its ambitious internalisation investment program.

Plans to bring its fixed interest and cash teams in-house are well underway, with HESTA targeting at least 15 percent of its portfolio being internally managed in the short-to-medium term.

HESTA CEO Debby Blakey said the fund’s hybrid strategy – which combines direct investment capability alongside leading external asset managers – aims to continue generating strong, competitive, long-term investment performance at a lower cost, directly benefitting members.

“This is an exciting and new chapter for our fund that builds on a track record of delivering outstanding investment performance for members," Ms Blakey said.

“Our internal asset management team will help bring us even closer to capital markets, giving us greater access to cutting-edge global investment thinking. This will help us continue to deliver strong, long-term returns and ensure members’ investments are well positioned for a dynamically changing world.”

HESTA CIO Sonya Sawtell-Rickson said the internalisation program aims to enhance investment thinking across the whole portfolio, as well as its responsible investment activities, with its internal Australian equities team to strengthen the fund’s established direct engagement program.

“Our HESTA impact program has a strong focus on identifying investment opportunities arising from long-term sustainability trends such as the transition to a low carbon future and the outperformance companies with strong, inclusive and diverse cultures can achieve," Ms Sawtell-Rickson said.

“We’re well placed to continue developing first-hand knowledge of company business models that can increase our ability to generate competitive, sustainable returns, while amplifying the positive impact we can have on behalf of members."

The internalisation program resulted in a new leadership structure with a number of key appointments made over the last two years including general m for growth assets Steven Semczyszyn, who joined in 2020, to lead the internal Australian Equities team. 

“Our senior leadership structure has been carefully designed to help deliver the overall investment program and portfolio strategy and is aimed at enhancing an innovative, leading investment team, with plans to support future growth in capability and capacity," Ms Sawtell-Rickson said.

The fund has further invested in its systems and data, including the implementation of a whole-of-fund portfolio management system which can be leveraged for internalisation across asset classes.

“We’re bringing in some of the best and brightest minds to help manage a growing and significant pool of assets. Over the next two years we plan to have half of the active Australian Equities money managed in-house," Ms Sawtell-Rickson said.

Recruitment of the fund’s fixed interest and cash teams is well underway and expected to be fully operational by late 2022.

“We’re continuing to build capability across a range of asset classes that will allow us to keep delivering outstanding results for members,” Ms Sawtell-Rickson said.

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THE Australian Small Business and Family Enterprise Ombudsman, Bruce Billson has thanked the 2,000 small and family businesses which have completed an online survey as part of the Small Business Natural Disaster Preparedness and Resilience Inquiry.

Mr Billson, who is currently hosting small business feedback sessions in areas impacted by natural disasters across Australia, said the online survey is an excellent way for small and family businesses to contribute to the ongoing inquiry.

“Thank you to the 2,000 small and family businesses which have already taken the time to complete our online survey – we value your contribution,” Mr Billson said.

“We want to hear from as many small and family businesses as possible, to learn more about what steps and support best helped them to proactively contend with and recover from a disaster. So if you can’t get to an in-person feedback session, please complete our online survey – your insights are vital to this inquiry. 

“I encourage anyone in a small business who has lived experience of a natural disaster such as bushfires, cyclones or floods and may also have ideas about how best the government can support them to prepare and remain resilient in the case of an unavoidable event, to be part of this important discussion," Mr Billson said.

“What we learn from our small business community, will help inform the work on our current Small Business Natural Disaster Preparedness and Resilience Inquiry, including recommendations to improve information and engagement programs to best target and assist small businesses in preparing for natural disasters.

“In our feedback sessions so far, we’ve heard time and time again that local engagement, leadership and decision making, informed by local knowledge and community connectedness and engagement is critical. More often than not, it’s the local business communities who are experienced in disasters that affect their region, that can best guide and support their business peers," he said.

“This local leadership needs to be supported appropriately, so they have access to the resources needed to assist small business owners who are working to get back on their feet after a natural disaster hits.”

The survey closes on February 28, 2022. Submissions are also welcome and can be completed here. The deadline for submissions is February 25, 2022. 

Complete ASBFEO’s online survey here.

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) will hear evidence from critical industries and government agencies on proposed new laws to protect Australia’s infrastructure from sophisticated cyber attacks.

The Security Legislation Amendment (Critical Infrastructure Protection) Bill 2022 addresses outstanding elements of new cyber laws passed by the Parliament last year, as recommended by the PJCIS in its Advisory report on the Security Legislation Amendment (Critical Infrastructure) Bill 2020 and Statutory Review of the Security of Critical Infrastructure Act 2018.

The committee will hear from witnesses representing a range of industry sectors including: IT, telecommunications, education, health care, logistics, energy, utilities, and key union groups. The committee will also hear from key government agencies, such as the Australian Signals Directorate and the Department of Home Affairs.

"Australia’s security outlook has never been more uncertain, and so it’s critical that government and industry are working hand in glove to identify and counter sophisticated cyber attacks," PJCIS Chair Senator James Paterson said.

 "The second tranche of cyber laws aims to achieve just that, and I look forward to hearing from the government and private sector alike to ensure a unified response to threats against our nation," Senator Paterson said.

Further information on the inquiry can be obtained from the committee’s website.

Public hearing details

Wednesday, 16 March 2022
​10am – 5pm (AEDT)
​Committee Room 2S1, Parliament House, Canberra

A program for the hearing is available online and the hearing will be broadcast live at aph.gov.au/live.

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THIS THURSDAY, the Indigenous Affairs Committee will hear from four organisations as part of its inquiry into fostering better engagement with Aboriginal and Torres Strait Islander consumers. This will be the inquiry’s final public hearing for this current Parliament.

The four organisations appearing at the public hearing this Thursday are: the Foundation for Alcohol Research and Education (FARE); Aboriginal Medical Services Alliance NT (AMSANT); Danila Dilba Health Service; and Northern Territory Council of Social Service (NTCOSS).

Committee Chair Julian Leeser MP said, "These organisations played a central role in preventing a Dan Murphy’s store from opening near dry communities in the Northern Territory. They have firsthand experience of poor corporate behaviour towards Aboriginal and Torres Strait Islander communities in relation to alcohol, health and other social issues.

"The committee looks forward to discussing options for more effective and meaningful Indigenous engagement by the corporate sector," Mr Leeser said.

Public hearing details

Date: Thursday, 17 February 2022 (AEDT), 11.35am

- Foundation for Alcohol Research and Education (FARE)

 - Aboriginal Medical Services Alliance NT (AMSANT)

 - Danila Dilba Health Service

  - Northern Territory Council of Social Service (NTCOSS)

A live audio stream of the hearing will be accessible at https://www.aph.gov.au/Watch_Read_Listen.

For more information about this inquiry, including its terms of reference, details of upcoming public hearings, and instructions on making a submission, please visit the Inquiry webpage.

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CLEAN ENERGY is a multi-billion-dollar sector that employs hundreds of thousands of Australians. However, the jobs across the whole energy sector, including renewable energy and energy efficiency, have never been systemically counted.

Australia is to adopt the United States’ gold standard of measuring energy sector jobs with the Commonwealth Department of Industry, Science, Energy and Resources (DISER) announcing a commitment to delivering the inaugural Australian Energy Employment Report (AEER). This survey will identify jobs and skills in the energy sector to train and prepare the workforce of the future.

The AEER is a key outcome of research by the Reliable Affordable Clean Energy Cooperative Research Centre (RACE for 2030) 2021 report, Developing the Future Energy Workforce.

RACE for 2030’s CEO, Jon Jutsen said, “We welcome the commitment of the Commonwealth Government at this crucial time to understand employment in the energy sector. The clean energy transition will cause a dramatic shift in employment. New skills and resources are needed to ensure the transition provides the greatest employment opportunities, and benefits Australia both environmentally and economically.”

To date, there has not been a systemic national framework to measure or forecast Australia’s clean energy jobs needs. The AEER is an important step in addressing this gap and will allow both industry and government to capture the economic opportunities as the Australian energy sector transitions to net zero carbon emissions.

“Australia’s energy transition is proceeding rapidly. This survey will provide up-to-date information on energy jobs across the sector. We look forward to collaborating with DISER and our partners to deliver the inaugural AEER over the coming year,” said Jessica Breadsell, RACE for Everyone Program co-leader.

RACE for 2030's partners who contributed to Developing the Future Energy Workforce report were UTS Institute for Sustainable Futures, Monash University, Energy Efficiency Council, ClimateKIC, Startupbootcamp, Energy Lab and the Australian Power Institute.

https://www.racefor2030.com.au/opportunity-assessment-reports/

About RACE for 2030 CRC

RACE for 2030 is an industry led collaborative research centre established in July 2020 with $68.5m of Commonwealth Government funding.

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THE PEAK BODY for Catholic not-for-profit hospitals is calling on the Federal Government to stamp out the rise of inefficient ‘junk’ health insurance policies by making ‘bronze level’ insurance the new minimum requirement for Australians seeking to avoid the Medicare Levy Surcharge (MLS).

In its Federal Budget submission, Catholic Health Australia is urging the Federal Government to reform the private health insurance system, which currently allows health insurers to sell virtually worthless insurance called ‘basic’ insurance – dubbed ‘junk’ by some – to consumers who are primarily interested in avoiding the MLS at tax time.

CHA Health policy manager Alex Lynch said it was alarming that ‘junk’ policies had grown from a third of all policies sold in 2015, to nearly two-thirds today.

"Most of these ‘junk’ policies merely allow holders to enter the public system as a private patient. Junk policies allow individuals to avoid paying extra tax and provide a super-easy revenue stream for private health insurers. But they offer zero relief to the overburdened public hospital system, nor value to customers," Mr Lynch said.

"We need to recalibrate the system so people are either paying the MLS to fund more Medicare or receiving proper insurance that reliably allows them to be treated in the private health system. Our current system, which encourages private health insurers to make big profits from selling near-worthless products, is a shocking waste our health system can no longer afford."

CHA is calling for bronze-level policies, which cover 18 categories of services in private hospitals, to be the new floor for Australians who wish to be exempt from the Medicare Levy Surcharge.

“A private health policy should give you the chance to exercise choice and use private hospitals where suitable," Mr Lynch said.

"The pandemic has highlighted the need for government to encourage the use of private hospitals so they can take pressure off the public system. But this can only happen if we start winding up the sale of ‘junk’ private health insurance that sees people pushed into public hospitals anyway."

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