BOTH major parties should be concentrating on generating jobs for Victorians in the lead up to the November election following today’s disappointing unemployment figures, according to Victoria's most influential employers’ group.

With another 15,000 Victorians looking for work as unemployment jumps from 6.2 per cent to 6.5 per cent (seasonally adjusted), both parties should be looking for initiatives to encourage employment.

The chief executive of the Victorian Employers' Chamber of Commerce and Industry (VECCI) Mark Stone said that lifting the threshold at which a business starts paying payroll tax to $850,000 would bring payroll relief to 40,000 Victorian businesses.

"It would generate jobs almost instantly,” said Mr Stone.

"Employers across the state have told me that payroll tax is a major disincentive to employing more staff.

"It must be lifted from the current threshold of $550,000 to $850,000.

“These figures show that youth unemployment is a major concern, especially with a 20 per cent drop in apprenticeships in the past 12 months."

Mr Stone said the figures highlight the need to progress job-creating infrastructure projects throughout Victoria, such as East West Link Stages 1 and 2 and regional projects such as Ballarat Railway Station and Geelong’s Yarra Street Pier redevelopment.

These projects will create significant direct and indirect employment, benefit metropolitan and regional business and have an apprenticeship and traineeship element which will boost youth employment.

Mr Stone has spoken to leaders of both major parties in recent days about these issues, urging them to adopt VECCI’s recommendations.

"Victoria has a solid economic base but our potential will not be realised without policies that drive greater investment and business activity,” said Mr Stone.

www.vecci.org.au  

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Queensland Resources Council Chief Executive Michael Roche has warned a meeting of gas industry professionals that their industry is under as much threat as their coal counterparts from activists trying to shut down the state’s resources sector.

Addressing a Queensland Petroleum Exploration Association (QUPEX) lunch in Brisbane today, Mr Roche said the campaign being waged against the coal industry had its roots in the perceived success of the anti-coal-seam gas movement.

‘The activists’ 2012 campaign manual – Stopping the Australian Coal Export Boom – praises what it describes as Lock the Gate’s ‘phenomenal community backlash’ against coal-seam gas,’ Mr Roche said.

‘The document goes on to credit Lock the Gate with creating ‘unprecedented political opportunities for coal activists around the country.’

‘As we know the scare campaigns against the coal and gas industries are continuing and supported by other strategies including litigation to ‘disrupt and delay’ key projects, changing the economic narrative via bogus economic reports and denying all reputable forecasts with claims that fossil fuel demand is declining,’ Mr Roche said.

‘The campaign is sophisticated, well-funded and aimed directly at the heart of the Queensland economy.

‘The people running these campaigns are promoting ideology over reality without regard to the 400,000 Queenslanders whose livelihoods rely on their resources sector.’

Following on the release of an anti-coal activist checklist in March, the QRC has published an anti-gas scorecard that compares the progress of their campaign against strategies revealed in Stopping the Australian Coal Export Boom.

www.qrc.org.au

Resource industry employer group AMMA (Australian Mines and Metals Association) statement by Scott Barklamb - Executive Director Policy & Public Affairs:

AUSTRALIA’S resource industry congratulates the governments of Australia and Japan for the signing of the Japan Australia Economic Partnership Agreement (Free Trade Agreement).

In Canberra today, Prime Minister Tony Abbott and Prime Minister Shinzō Abe have created significant long-term bilateral economic opportunities for decades to come.

This historic agreement strengthens ties with one of Australia’s most valuable trade partners and is a significant milestone for our national resource industry, which currently contributes about 80% of total export goods to Japan.

Japanese demand for coal, iron ore and natural gas has been a strong driver of Australia’s export revenue and economic prosperity, with $36.2bn worth of trade in these commodities in the 2012-13 financial year alone.

Today’s Free Trade Agreement is perfectly timed with Australia emerging as a global powerhouse of LNG production and bullish economic growth likely to see Japanese energy demand increase exponentially.

It is vital that after a record decade of resource project investment that Australia positions itself to be a primary supplier of energy to the major economic powers of the Asia Pacific region.

We have the natural resources, the expertise, skills and technology.

To see new opportunities presented by this FTA come to market, we must capitalise on our competitive advantages while addressing those areas in which our nation has fallen behind.

This includes building a stable and globally competitive taxation system, having the courage to deliver meaningful, long-term workplace relations reform, and maximising the productive output of Australian industries and services.

www.amma.org.au

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PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted fall (-0.5 percent) in monthly retail trade figures (month-on-month) reported by the ABS followed a 0.2 percent rise in April 2014.

Year on year retail growth fell 4.6% in May 2014, seasonally adjusted, compared to May 2013.

ARA Executive Director Russell Zimmerman said May trade results -0.5% were disappointing for retailers. Retailers have been enduring struggles with the unexpected change in weather and while sudden winter weather showed glimpse of hope for winter stock, this was not sufficient as resulted by the buying behaviours of consumers.

“Retailers were hoping that Mothers Day in May would lift buying behaviours and although this did lift some sales, it did not compete with the unseasonably warm weather which caused consumers to hold off purchasing winter products.

“Department stores experienced a tough month during May (fall of -2.6%) and clothing, footwear and personal accessory retailing (fall of -2.3%). The unseasonably warm weather in May caused consumers to hold off on purchasing their winter goods. Retailers particularly in fashion experienced major struggles due to this.

“The effects of the Federal Budget announcement has obviously slowed down retail trade and lowered consumer confidence. The Federal Government must act quickly to ensure that retail trade does not suffer as we gear up toward the Spring Summer racing season and as retailers start looking towards stocking up for Christmas.

“According to the Australian Retail Index (delivered by BDO and Retail Express), retail sales for the month of June are very patchy and this would indicate that consumers have not returned to their former spending patterns from before the budget. This does not auger well for the next few months.

“With the added on costs that retailers have taken a hit on in July, (Minimum  wage increase the last transition of the Modern award for penalty rates, and 20 year olds being paid as adults after six months employment) retailers will need to review their costs such as labour and look to reducing costs wherever possible.

“Turnover fell in Victoria (-1.1%), followed by New South Wales (-0.5%), Western Australia (-0.3%), Queensland (-0.1%), the Australian Capital Territory (-0.3%) and Tasmania (-0.2%). These falls were partially offset by rises in South Australia (0.2%) and the Northern Territory (0.4%).

“After this week’s interest rates remaining stagnant, it is clear that the Reserve Bank of Australia (RBA)  must  assist and stimulate the economy by reducing interest rates at its meeting in August as slow retail trade being endured by retailers is doing little to assist retailers making a profit and the SME sector will feel this the most.

MONTHLY RETAIL GROWTH (April 2014 – May 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (0.1%), Food retailing (0.1%), Other retailing (-0.4%), Household goods retailing (-0.9%), Clothing, footwear and personal accessory retailing (-2.3%) and Department stores (-2.6%).  Total sales (-0.5%).

New South Wales (-0.5%), Northern Territory (0.4%), South Australia (0.2%), Queensland (-0.1%), Tasmania (-0.2), Western Australia (-0.3%), Australian Capital Territory (-0.3%) and Victoria (-1.1%), and Total sales (-0.5%).

YEAR-ON-YEAR RETAIL GROWTH (May 2013 – May 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (11.6%), , Food retailing (5.2%), Household goods retailing (3.8%), Clothing, footwear and personal accessory retailing (2.7%), Other retailing (1.5%) and Department stores (-1.9%). Total sales (4.6%).

Tasmania (8.7%), New South Wales (7.3%), Victoria (5.4%), Queensland (3.4%), South Australia (2.5%), Western Australia (-0.7%), Australian Capital Territory (-0.8%) and Northern Territory (7.4%). Total sales (4.6%).

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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