THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Philip Lowe, on Friday, August 9, 2019 in Canberra.

Since the RBA appeared before the committee during the previous Parliament in February 2019, the RBA has eased monetary policy by 50 basis points to 1.00 percent, following the RBA’s decisions to cut the cash rate in June and July. At its meeting today, the RBA decided to leave the cash rate unchanged at 1.00 per cent.

Commenting on the decision to keep rates on hold, the RBA Governor said, "The outlook for the global economy remains reasonable."

However, he also noted "the increased uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy remain tilted to the downside".

The Governor further remarked, "It is reasonable to expect that an extended period of low interest rates will be required in Australia to make progress in reducing unemployment and achieve more assured progress towards the inflation target."

The Chair of the House Economics Committee, Tim Wilson MP, said, "Many Australians question the justification of a low interest rate environment for the foreseeable future. The committee will examine the decisions of the RBA in the context of Australia’s broader macroeconomic conditions and assess the RBA’s confidence in current monetary policy settings which aim to encourage growth and keep inflation consistent with the target over the coming years."

Public hearing details:

Date: Friday, 9 August 2019

Time: 9.30am to 12.30pm

Location: Main Committee Room, Parliament House, Canberra

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

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THE Queensland Resources Council (QRC) has welcomed the Palaszczuk Government’s Skills for Queensland Strategy as a targeted plan to deliver skills to support the sector’s current and future growth. 

QRC chief executive Ian Macfarlane said the QRC welcomed the strategy’s multiple initiatives, from schools to workplaces, to boost the development of skills so critical to the resources sector’s critical contribution to the Queensland economy. 

“QRC has had the opportunity to work with Employment Minister Shannon Fentiman and her department on the government’s agenda for skills and apprenticeships.  The Skills for Queensland strategy picks up on a number of recommendations that QRC has made on behalf of our member companies and the wider resources sector,” he said. 

“The resources sector supports more than 316,000 Queenslanders in employment.  One in eight jobs in Queensland are supported by the resources sector.

“The ongoing prosperity and future development of the resources sector and the economic contribution to Queensland – through more jobs, more exports and more royalties – depends on pipeline of skilled labour.” 

Mr Macfarlane said QRC welcomed the strategy’s commitment to:

• launch a micro-credentialing pilot to support students, workers and new entrants to skills, upskill and reskill with QRC looking to focus this initiative on emerging jobs in automation and other associated areas, including remote operations centres.  
• establish a New Regional Jobs Committees to identify trends and opportunities and deliver place-based solutions; and
• expand Gateway to Industry Schools Program, which QRC participates in through the Queensland Minerals and Energy Academy that operates in 60 schools with plans to grow to 100 schools with support of QRC member companies.

Mr Macfarlane said QRC would welcome the opportunity to continue to work with the Minister and the Government on the strategy and supports the formation of a Ministerial Skills Roundtable and biannual regional skills and jobs summits to better inform government planning.

www.qrc.org.au

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THE Queensland Resources Council (QRC) has welcomed the Morrison Government’s announcement of a Productivity Commission review into streamlining regulation in the resources sector, with a view to cutting red tape but maintaining the highest standards.

“Every new investment in the resources sector means more jobs for Queenslanders,” QRC chief executive Ian Macfarlane said.

“The Queensland resources sector employs more than 315,000 Queenslanders both in direct jobs and supporting industries, and it is paying more than $5.2 billion in royalty taxes to the State Government this year alone. More than 80 per cent of our exports come from the resources sector.

“Those returns benefit all Queenslanders.  But our future prosperity relies on attracting new projects and new investments.

“We think it is especially important that the review focuses on post approval time lines, and eliminating avenues for lawfare whereby activists and protestors attempt to hold up properly approved projects through court delays.

“According to the Queensland Major Projects Pipeline Report, around $2 billion of resource projects are currently under construction with a further $19 billion in the pipeline to 2022-23," Mr Macfarlane said.

“Queensland cannot take future investment for granted.  The most recent report from the Fraser Institute on investment attractiveness showed Queensland had fallen to 13th place on the global rankings.

“Queensland already has world leading environmental rehabilitation laws.  By ensuring appropriate regulation, without unnecessary red tape, Queensland has every reason to be at the front of the pack for Australia and the world when it comes to creating jobs and exporting our high quality resources. This review will be a vital step in ensuring we deliver on that potential," he said.

“QRC looks forward to participating in the Productivity Commission review.”

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AN INTERNAL Essential Energy document — obtained by the Electrical Trades Union (ETU) — has revealed that the NSW Government-owned company that operates the electricity poles and wires across 95 percent of NSW is planning to slash one in five regional positions by 2024.

According to the ETU, the cuts will see an additional 500 workers lose their jobs on top of the 182 that Essential Energy last month announced would be cut from their workforce this year.

The Electrical Trades Union said the latest revelation highlighted the importance of urgent political action to develop a practical plan to save these jobs across regional NSW.

Since 2012, the workforce at Essential Energy has nearly halved as more than 2,000 jobs have been lost, drastically reducing the number of skilled front-line workers available to respond to blackouts, storm damage, or other major incidents.

ETU secretary Justin Page said the union was alarmed by the revelation that the current round of job cuts were just the beginning, with one in five workers at risk of losing their jobs in the coming years.

“Essential Energy has already been cut to the bone, we’ve seen the workforce almost halved in recent years and dozens of depots shut, so to discover that hundreds more jobs are on the line is alarming,” Mr Page said.

“With one in every five workers facing the chop, there is no question that regional communities will be devastated and service delivery will be greatly impacted.

“For towns already struggling with drought, the loss of these skilled jobs — forcing many families to move away — will have devastating flow-on effects on the local economy.”

The union has written to Essential Energy CEO John Cleland outlining a series of proposals that provide alternatives to  job losses. These include:

• The insourcing of work currently contracted out — as other NSW electricity distributors have done — including pole replacements, service wire replacements, street lighting maintenance, vegetation management, yard maintenance, and information and communications technology (ICT) functions;
• Entry into the contestable metering market, given Essential Energy workers already possess the required skill sets; and
• Entry into the renewable energy market, given the significant amount of renewable projects being constructed across regional NSW.

The ETU has also provided a written briefing to NSW Deputy Premier John Barilaro outlining alternatives to job cuts.

“Our members have been extremely grateful for the supportive comments made by Mr Barilaro and many of his National Party colleagues, but those words need to be followed up with tangible actions if we’re going to save these jobs,” Mr Page said.

“We believe there are viable options available to Essential Energy that can avoid these cuts, but they will require a united effort from the company, workers, their unions, the broader community, and elected representatives if we are going to save these jobs.

“We also want to work with the NSW Government to find a longer-term solution to the current system where the Australian Energy Regulator imposes arbitrary and draconian budget cuts, with little regard for the impacts on workers or their local communities.”

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