The Australian Competition and Consumer Commission today released a Statement of Issues outlining the ACCC’s preliminary views on the proposed acquisition of iiNet Ltd (ASX:IIN) (iiNet) by TPG Telecom Ltd (ASX:TPM) (TPG).

The ACCC is seeking further information to determine whether the proposed acquisition would be likely to substantially lessen competition in the market for the supply of retail fixed broadband services.

“The proposed acquisition would combine two of the five largest suppliers of fixed broadband in Australia. The ACCC is exploring the extent to which the acquisition of iiNet will reduce competition by reducing the likely competitive tensions in respect of pricing, innovation and service quality,” ACCC Chairman Rod Sims said.

A DEAL to sell uranium to India, with the potential for significant employment and export benefits, will be the focus of a public hearing in Canberra on Monday.

The Parliament’s Joint Treaties Committee is completing an inquiry into the deal which would see Australian uranium sold for the first time to a country that is not party to the Nuclear Non-Proliferation Agreement.

Australian Government witnesses will give evidence on the safeguards in the deal to ensure that Australian uranium is used for safe civilian purposes only and is not diverted to military programs.

Committee Chair, Wyatt Roy MP, said the deal could improve the lives of ordinary Indians by reducing energy poverty in India.

“The deal breaks new ground and the issues involved are complex.  It is important to ensure the deal is done right,” he said.

Negotiations for the sale of uranium to India began in 2006 and agreement was reached in 2014. The Government believes the deal maintains Australia’s strong commitment to nuclear nonproliferation and disarmament.

The deal has attracted criticism from some nuclear non-proliferation specialists because India is not party to the Nuclear Non-Proliferation Treaty and has been subject to external and internal criticism for its nuclear safety record.

“The committee will be undertaking a diligent and comprehensive look at the proposal to make sure all the issues are fully explored and considered,” Mr Roy said.

Public Hearing: Monday 15 June,
Committee Room 2R1,
Parliament House, Canberra,

11.30am – 1.00pm:
Australian Safeguards and Non-Proliferation Office
Department of Foreign Affairs and Trade
Australian Radiation and Nuclear Protection Agency
Department of Industry and Science

The hearings will be broadcast through: www.aph.gov.au/live

Copies of the treaties and submissions received can be found at: http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties

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AUSTRALIA risks choking and the current tax system is not doing us any favours; in fact it is holding us back, says the Institute of Public Accountants (IPA).

“Australia’s current tax system inhibits growth and stifles entrepreneurialism and innovation,” said IPA chief executive officer, Andrew Conway.

“Do we want a tax system which continues to tax effort or a system that taxes consumption?  It is the IPA’s view that the latter should be pursued if Australia is to arrest its productivity decline and make the tax system competitive again.

“Tax reform represents one of the strongest levers the Government has at its disposal to revive productivity, competitiveness and growth.

“Australia faces dual challenges of the need to ensure fiscal sustainability and boost productivity growth to sustain growth in living standards.

“Moving to growth supporting taxes is essential to sustain Australia’s economic momentum and to meet all current and future spending needs.

“Consumption taxes such as the GST represent one of the most efficient and sustainable tax bases available and yet Australia’s GST base remains relatively narrow and covers 47 per cent of private consumption.

“We can’t keep relying on bracket creep but it will be inevitable without a change in the tax mix,” said Mr Conway.

The IPA’s submission to Treasury on the Tax Discussion Paper can be viewed at: www.publicaccountants.org.au/resources/news-and-media/submissions/tax-discussion-paper

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THE Australian Retailers Association (ARA) said monthly retail trade figures reported today by the ABS were relatively unchanged (0.0 percent) following a 0.3 percent rise in March 2015.

ARA Executive Director Russell Zimmerman said although today’s monthly figures were modest, year on year growth for April is looking strong at 4.1 percent.

“In seasonally adjusted terms there were rises in cafes, restaurants and takeaway food services (0.8 percent) and clothing, footwear and personal accessory retailing (1.3 percent). 

“These rises are to be expected when you take into account Autumn’s cold weather which had well and truly settled in during the month of April, prompting many Australians to start building their winter wardrobes and turn to their local restaurants and takeaway services for comfort food.

“In seasonally adjusted terms there were rises in Victoria (0.5 percent), the Australian Capital Territory (0.6 percent), South Australia (0.1 percent) and the Northern Territory (0.1 percent). New South Wales was relatively unchanged (0.0 percent) and Queensland faced a fall (-0.6 percent), as did Tasmania (-0.9 percent) and Western Australia (-0.1 percent). 

"While interest rates are sitting at an all time low and the recently released Federal Budget delivered some good news for business, unfortunately there is still a lot of support needed to ensure the success of the retail industry into the future.

“The ARA also has strong concerns following the Fair Work Commission’s decision this week to increase the National Minimum Wage to $656.92 per week, or $17.29 per hour.

"The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector, so we are obviously concerned about the adverse effects this decision will have on retailers. The retail industry simply cannot keep up with excessive wage increases,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (March 2015 – April 2015 seasonally adjusted)

Clothing, footwear and personal accessory retailing (1.3%), Cafes, restaurants and takeaway food services (0.8%), Household goods retailing (0.0%), Food retailing (-0.1%), Other retailing (-1.0%) and Department stores (-0.7%). Total sales (0.0%).

South Australia (0.1%), Australian Capital Territory (0.6%), Victoria (0.5%), New South Wales (0.0%), Western Australia (-0.1%), and Northern Territory (0.1%), Queensland (-0.6%) and Tasmania (-0.9%). Total sales (0.0%).

YEAR-ON-YEAR RETAIL GROWTH (April 2014 – April 2015 seasonally adjusted)

Household goods retailing (8.5%), Clothing, footwear and personal accessory retailing (7.5%), Food retailing (3.5%), Cafes, restaurants and takeaway food services (3.3%), Department stores (1.4%) and Other retailing (0.6%). Total sales (4.1%).

Australian Capital Territory (5.9%), South Australia (5.8%), New South Wales (4.9%), Victoria (4.4%), Western Australia (2.9%), Queensland (2.8%), Tasmania (2.2%) and Northern Territory (-0.7%). Total sales (4.1%).

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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