THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell has welcomed the news that Greensill Capital will stop providing its supply chain finance services to big companies that do not offer fair payment terms.

The announcement from Greensill Capital comes immediately following the release of ASBFEO’s Supply Chain Financing Position Paper, which provides a suite of draft recommendations to be finalised before a full report is handed down at the end of March 2020.

“We are delighted to see that Greensill Capital will no longer provide their product to businesses with poor payment terms, that is, in excess of 30 days,” Ms Carnell said.

“A key recommendation of our position paper is that all businesses, regardless of their size, should be paid within 30 days.

“Where payment terms are 30 days or less, supply chain finance should be available to those small businesses that want to be paid faster," she said.

"We have a real problem when large businesses extend their payment terms from 30 days to 60, or even 90 days, and then offer a supply chain financing product to those small business suppliers who are forced to take a haircut to get paid on time. Today’s announcement by Greensill Capital makes it clear that supply chain financing businesses won’t be used as a whipping boy for the appalling treatment of small business by large businesses.

“It is great to see businesses like Greensill Capital, along with Telstra and Rio Tinto, show corporate leadership on this issue. We will continue to monitor Australia’s other corporate players and encourage them to follow the leadership of these companies.”

www.asbfeo.gov.au

ends

THE Joint Committee of Public Accounts and Audit has commenced an inquiry to consider the cyber resilience of government entities prioritising information security. As part of this inquiry, the committee will examine two Auditor-General’s reports including:

No. 1 (2019–20) Cyber Resilience of Government Business Enterprises and Corporate Commonwealth Entities

No. 13 (2019­–20) Implementation of the My Health Record System

Lucy Wicks MP, chair of the committee, said, "The ability to design and maintain secure cyber networks is essential in modern governance. As such, it is a priority of the Committee to ensure that Government entities have the appropriate systems in place to protect information security."

Submissions from interested individuals and organisations are invited by Thursday, March 19, 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the inquiry is available on the committee's website.

ends

FUND manager Atlas Advisors Australia is urging the Australian Government to recognise the long-term benefits of foreign investors to the Australian economy by increasing incentives under the Significant Investor Visa scheme.

The call  comes as the February 14 deadline approaches for public consultation on the “Business Innovation and Investment Program: Getting a better deal for Australia”, including the settings for Investor visas and Significant Investor visas.

Executive chairman of Atlas Advisors Australia, Guy Hedley said the fund manager entirely supported the review and the Federal Government’s objectives to maximise the opportunities and benefits to Australia from the program. 

“The Significant Investor Visa program has brought in billions to the Australian economy, assisting the growth of Australian companies and startups, creating employment opportunities and increasing our exports,” Mr Hedley said.

“However the hard figures do not account for the longer-term economic and other benefits of the scheme.”

Mr Hedley said the economic impact of the SIV scheme was currently measured only across the four-year investment period of the visa. 

“This does not account for the impact super wealthy migrants have on the Australian economy for the years after they obtain permanent residency,” Mr Hedley said.

“These new migrants not only pour billions of dollars into our economy, they also bring skills, expertise and experience that is assisting Australia to enhance its competitiveness in global trade and build better links with international markets. These effects last for generations.”

Aside from the SIV investment requirements, many applicants make additional investments to improve their knowledge of the business environment and build stronger connections to Australian communities.

“They also donate to charities to help people in need in and to help us better protect our environment,” Mr Hedley said.

With more than $1.7 billion of funds under management, Atlas Advisors Australia manages the investments of many of the highest net worth Chinese investors into Australia.

Mr Hedley urged the Australian Government to remain committed to the SIV program and to strengthen incentives for applicants.

“The Federal Government’s recognition of the value and contribution that our new migrants make is critical to encouraging ongoing investment in Australia.”

ends

THE Queensland Resources Council (QRC) has welcomed the appointment of Keith Pitt as the Minister for Resources, Water and Northern Australia.

QRC chief executive Ian Macfarlane said it was good news for the resources sector to see another Queenslander taking on the important economic portfolio.

“The resources sector is at the heart of the Australian economy, and that is especially so in Queensland where it supports one in every seven jobs and generates one in every five dollars,” Mr Macfarlane said.

“Keith Pitt has a reputation for straight-talking and as a regional Queenslander he knows first-hand about the importance of the resources sector to create jobs and investment in regional communities.

“He also has a strong understanding of the policy issues that relate to the resources sector, in particular the need for affordable and reliable energy," he said.

“QRC looks forward to the new Minister building on the substantial policy work of his predecessor Senator Matt Canavan, especially in the areas of maintaining Queensland’s role as a resources powerhouse through our coal, gas and minerals sectors. 

“We are also keen to see the ongoing development of the critical minerals strategy where Queensland has an important role to play in the development of renewable energy minerals such as cobalt, nickel, rare earths, vanadium and manganese, and advanced technology minerals such as rare earths, scandium, tungsten and molybdenum.

“Queensland has led the way in the development of sustainable investment, especially in our gas industry which powers the East Coast gas market. 

“QRC looks forward to meeting with the incoming Minister to further discuss the policy developments that can encourage new and future investment and create new jobs.”

www.qrc.org.au

ends

THE Agriculture and Water Resources Committee will be travelling to Wagga Wagga on Friday, February 7, as part of its Inquiry into growing Australian agriculture to $100 billion by 2030.

The Committee will be inspecting the research facilities at Charles Sturt University and then holding a public hearing at the university.

The Committee chair, Rick Wilson MP, said, “Charles Sturt University has a strong focus on partnering with industry to develop new precision agriculture techniques and technologies. The Committee looks forward to discussing with Charles Sturt the outcomes of this research and how to ensure Australian farmers have the opportunity to become early adopters of innovative technologies.”

Public hearing details

Date: Friday, 7 February 2020
Time: 12.30pm to 4.45pm
Location: Convention Centre, Building 230, Charles Sturt University, Wagga Wagga

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

ends

QUEENSLAND Resources Council (QRC) chief executive Ian Macfarlane has release a statment on the currnet on mining safety reviews.

"QRC has welcomed the release of the Brady Review into Mining and Quarrying fatalities and two University of Queensland expert legal assessments of coal mining and mining and quarrying legislation," Mr Macfarlane said.

"These reports represent a wealth of information that the resources industry can use to further enhance safety. Last July, QRC committed to working with Minister (Paul) Lynham on the outcomes of these reviews. We restate that commitment now and congratulate the Minister on initiating these important reviews.

"QRC endorses all of the recommendations of the Brady Review.  The report represents a detailed analysis of the fatalities, serious accidents and high potential incidents that have occurred in the Queensland mining and quarrying industries over the last 20 years. 

"It contains information that industry as a whole can use, as well as being a resource that individual operations can use to help them better manage hazards at their own sites. We thank Dr Sean Brady for his detailed work," Mr Macfarlane said.

The Brady Report identified: “The six fatalities that occurred between July 2018 and July 2019 have been described by some in the industry as evidence of an industry in crisis, but a bleaker assessment is that this is an industry resetting itself to its normal fatality rate.”

Mr MacFarlane said, "This is a very sobering assessment that the industry takes seriously. QRC commits to redoubling efforts to do everything possible to maintain vigilance and remain safe.

"QRC fully accepts that while the mining industry has inherent risk we must always improve the focus on the practical actions that can keep our workers safe. QRC will now undertake further detailed review of Dr Brady’s findings as a matter of urgency.

"We also acknowledge the imminent passage of the Resources Safety and Health Queensland (RSHQ) Bill, which arose out of the CWP inquiry," he said.

"QRC looks forward to working with the Minister, the resources safety inspectorate and worker representatives during the creation of RSHQ.

"QRC is also coordinating work with experts and companies to identify practical programs to implement safety principles identified in Dr Brady’s report.

"The Queensland resources industry is determined to remain a leader in safety, and the industry commits to using the findings of Dr Brady’s report to identify new ways to improve safety for all workers.

"QRC also supports in principle the recommendations of the UQ Legislative Effectiveness Review and looks forward to a full analysis of the respective reviews by the Ministerial Advisory Committees."

www.wrc.org.au

ends

THOUSANDS of small businesses will see the benefits of faster payment times after Rio Tinto moved to 20-day payment terms for 90 percent of its suppliers.

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said this was excellent news for small businesses that trade with Rio Tinto.

“Rio Tinto is showing corporate leadership by changing its payment terms to within 20 days of receipt of invoice, and we are encouraging other big businesses to do the same,” Ms Carnell said.

“We welcome Rio’s new policy, which expands the definition of small business from being those who supply up to $1 million of goods and services to the miner, to also include businesses with annual turnover of up to $10 million. This is a positive move that the small business community will welcome.

“Rio Tinto is demonstrating it understands the needs of Australian small businesses," Ms Carnell said. “Cash flow is always king for small businesses and we know that by paying small businesses on time, the whole economy benefits.

““Both our Payment Times Inquiry and our Insolvency Practices Inquiry show that cash flow is the leading cause of insolvency.

“Overall, Rio Tinto is setting an example on payment times and this should be the benchmark for all big businesses in Australia.”

www.asbfeo.gov.au

THE Joint Committee of Public Accounts and Audit will hold its first public hearing in Canberra on Friday, 7 February 2020 as part of the Inquiry into the Administration of Government Grants of a number of Government programs and initiatives.

The hearing relates to two Auditor-General’s Reports: Report No. 5 (2019-20), on the topic of the Australian Research Council’s Administration of the National Competitive Grants Program; and Report No. 12 (2019–20), on the topic of the awarding of Funding Under the Regional Jobs and Investment Packages

The public hearing program and further information about the inquiry is available on the Committee’s website.

ends