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ACCC concerns on Siemens Alstom rail deal

THE ACCC has expressed preliminary concerns about the proposed merger of Siemens A.G.’s (Siemens) Mobility Division with Alstom S.A. (Alstom), which are detailed in a Statement of Issues published today.

“A combined Siemens-Alstom would be by far the largest supplier of heavy rail signalling in Australia,” ACCC chair Rod Sims said.

The ACCC’s review has focussed on signalling systems for heavy rail passenger networks, particularly train interlocking systems and automatic train protection (ATP) systems. Signalling systems provide safety and traffic management controls on rail networks.

Interlockings are the core of a signalling system; they set routes for the safe movement of trains across railway lines. Train protection systems ensure that trains comply with movement authorities issued by the interlockings.

“The ACCC’s preliminary view is that the proposed merger may substantially lessen competition in the supply of heavy rail signalling systems for passenger rail networks in Australia, in particular interlocking systems and ATP systems. The loss of competition could result in increased prices for customers, or lower levels of service, quality, or innovation,” Mr Sims said.

“We have heard from many industry participants who have expressed competition concerns with the merger. We will continue to evaluate the competitive options available to passenger rail networks in Australia."

The proposed merger is also being reviewed by overseas competition regulators, including the European Commission.

“The ACCC is liaising closely with overseas competition regulators, as some of these potential competition issues may also arise in other countries,” Mr Sims said.

The ACCC invites further submissions from interested parties in response to the Statement of Issues by 20 September 2018. The ACCC’s final decision is due on 29 November 2018.

The Statement of Issues is available on the public register: Siemens A.G and Alstom S.A propose to combine Siemen's mobility business with Alstom.

BACKGROUND

Siemens is a listed German conglomerate headquartered in Munich. Its Mobility Division is one of 11 business divisions.

Siemens acquired signalling supplier Invensys Rail in 2013 and Perth-based MRX Technologies in 2017.Alstom is a French société anonyme listed on the Euronext Paris stock exchange.

In 2015, Alstom acquired GE’s signalling business.Siemens and Alstom are both active in the rail mobility industry globally and each supplies rail signalling systems, rolling stock and rail electrification services in Australia. The key area of overlap between the parties in Australia is in the supply of rail signalling systems.

www.accc.gov.au

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More Qld jobs, exports and royalties to come with 22% boost in resource exploration

THE POTENTIAL has grown for more Queensland jobs, exports and royalties from the State’s critical resources sector, with a 22 percent increase in exploration spending for minerals and petroleum over the last 12 months.

Queensland Resources Council chief executive Ian Macfarlane said total investment in exploration for minerals and petroleum was $442.1 million last financial year – an $80 million or 22 percent increase – compared with 2016-17.

“An increased investment is an increased investment in future jobs, future exports and future royalties for Queenslanders,” Mr Macfarlane said.

“The Queensland Resources Council is working with the Government to ensure we have stable and predictable policy for the sustainable, competitive and stable development of the State’s resources for the benefit of all Queenslanders.”

Mr Macfarlane said the resources sector was already performing well on jobs by creating a new role every hour, on exports by delivering $1 billion in overseas sales every week, and on royalties delivering almost $100 million to the Palaszczuk Government every week.

“The increase in exploration spending has been across commodities and reflects the role the resources sector plays in supporting new infrastructure, the expansion of renewable energy, the growth in electric vehicles and battery storage,” he said.

“The strongest growth was in base metals - copper, silver, lead, zinc, nickel and cobalt with exploration increasing by 53% over the 2017-18 financial year from $57.6 million to $88 million.”

During 2017-18, the growth included:

  • gold exploration up 21% from $51 million in 2016-17 to $61.7 million in 2017-18;
  • copper exploration increased by 41% over the 2017-18 financial year, from $38.2 million to 53.8 million; and
  • petroleum exploration increased by 5% over the 2017-18 financial year from $154.9 million to $162.6 million. Up 22% over the quarter.

Queensland Exploration Council chair Brad John said the increased exploration investment reflected not only confidence in the sector and its future, but it also highlighted the importance of the Palaszczuk Government’s Collaborative Exploration Initiative and its commitment to release more land for exploration.

The Government has been seeking expressions of interest from explorers for:

  • 44,000 square kilometres for gas and coal
  • 1107 square kilometres in the North West Minerals Province
  • authorities to prospect for petroleum and gas over 17,245 square kilometres
  • 540 square kilometres for coal exploration

www.qrc.org.au

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Women in the STEM Workforce 2018 webinar event today

COLLABORATIVE, diverse and inclusive company culture as well as access to networking and mentorship are critical to support career progression and retention of Women in STEM, according to Women in the STEM Workforce 18 keynote speaker and CSL Data Science head, Milica Ng.

Speaking at today’s Women in the STEM Workforce event and webinar (from 1.30pm-5pm AEST today, September 4) hosted by the Australian Mathematical Sciences Institute’s (AMSI) APR.Intern program in Melbourne, Dr Ng said she was proof women could have career success later and career changes and breaks were not a full stop to advancement.

“It is important women are supported with the flexibility to manage their careers and progression in a way that acknowledges their future potential and present needs,” Dr Ng said.. 

Dr Ng, who said she experienced her renaissance in her 40s when she was hungry for new challenges, believed women should not feel pressured to reach their career peak early or made to feel they need to accelerate their careers during time out or slowing of professional development. It is possible for women to have it all, but not all at the same time.

“To me, career pathways are more like a game of snakes and ladders rather than a straight ladder, the journey includes pauses and changes of direction, these are not full stops and shouldn’t be barriers to progression,” she said.

Women currently account for only 16 percent of the STEM workforce, with family pressures, isolation in male-dominated industries and lack of confidence –Tabcorp’s Advancing the STEM Conversation report (published in June 2017) revealed they are 55 percent more likely to doubt their capability than men – as key contributors. 

Dr Ng is an APR.Intern success story. Having been originally placed at CSL through its PhD internship program, she now supervises interns herself to help drive her team’s research. The program provided an ideal platform to kick-start her career.

“Through the internship I found my way into CSL, which offered a supportive environment with ample opportunities for learning, growth and advancement. Access to industry, gave me a pathway to build experience and a professional support network to accelerate my career,” Dr Ng said.

APR.Intern has been running for over a decade – initially as AMSIIntern – to place emerging specialist research talent at the frontline of industry. Over that period, AMSI director, Geoff Prince, said that while the program had increased the number of female placements, 67 percent have been male. 

“We are seeing slow increases but overall women are severely underrepresented across all areas of STEM," Professor Prices said. "APR.Intern is just one of the programs AMSI delivers to tackle gender equity across the pipeline."

Today’s event marks the first in a series planned by APR.Intern to identify and address barriers such as flexibility in the workplace, unconscious bias and lack of confidence, contributing to the low representation of women in the sector.  

Dr Ng was one of two keynotes at today’s event, with Chief Executive Women president, Kathryn Fagg also addressing 120 attendees and national viewers of the livestream event. 

With a focus on identifying and existing initiatives and new opportunities to address barriers for women in STEM, the event also included two powerful Q&A sessions featuring thought leaders and industry champions. Speakers included representatives from Westpac, Telstra, Alcoa, STA Superstar of STEM, IMNIS, Australian Academy of Science, Australian Research Council, Engineers Australia and SAGE Athena Swan.

“APR.Intern is committed to giving a voice to women in STEM and providing a platform to tackle systemic issues surrounding their engagement and career success," Prof. Prince said. "This is essential to building Australia’s ongoing STEM capability to support future innovation."

Women in the STEM Workforce 2018 is being live streamed across the country. The event will still be viewable online after the event on https://aprintern.org.au/women-in-stem-webinar/

www.amsi.org.au

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Resources rebound delivering billions for the Qld economy

QUEENSLAND’s resources sector is lifting the State’s prosperity by creating one job every hour and investing close to $1 million every hour, says the Queensland Resources Council (QRC).

QRC chief executive Ian Macfarlane said the latest ABS data confirms the sustained commodity price recovery and larger production volumes were underpinning the State’s economy.

“In 2017-18 capex by resource companies in Queensland was $8.6 billion (up 4%) or $23.6 million every day and the sector created more than 8400 extra jobs in 12 months – the equivalent of one new job every hour,” Mr Macfarlane said.

“Our sector accounts for 35 percent of all private capital expenditure in Queensland ($24.6b) and it’s the first year we’ve seen an increase in mining capital expenditure since 2013-14.

“Resource companies are committed to spending locally with Rio Tinto spending over $1.5 billion on goods and services with Queensland suppliers at its Amrun bauxite project near Weipa.

“From Toowoomba in the South to Weipa in the North resource companies are employing Queenslanders, investing in Queensland businesses and channelling billions in royalties to the Government. 

“The challenge ahead for the sector will be to find the right people with the right skills and QRC member companies invest $1 million annually into our education arm the Queensland Minerals and Energy Academy (QMEA) to teach students STEM subjects and trade skills.” 

The Queensland resources sector now provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State – with almost 7000 businesses in the Greater Brisbane region – all from 0.1 percent of Queensland’s land mass.

www.qrc.org.au

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Retailers need a consumer confidence boost

THE Australian Retailers Association (ARA) believes July trade figures released today by the Australian Bureau of Statistics (ABS) represent a fair trade for July, with a 2.89 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said July’s trade figures were driven by strong growth in the Supermarket category which reached a 4 percent year-on-year growth.

“With food accounting for the bulk of overall retail trade, this July we saw Specialised food reach a 5.7 percent year-on-year growth and Liquor receive a 3 percent increase,” Mr Zimmerman said.

“Although the latest Roy Morgan Net Trust Score survey revealed the most trusted industry is the retail sector, retailers still need a consumer confidence boost.”

With retailers facing increased overheads, the ARA saw Clothing, footwear and personal accessories suffer a low year-on-year growth of 2.74 percent.

“July is always a tough month for fashion retailers because their winter stock slows down and their summer stock hasn’t had enough time to gain traction,” Mr Zimmerman said.

“This July we saw Clothing retail reach a 4.10 percent growth year-on-year, compared to a 7.35 percent increase received in June. Further to this, we saw Footwear and personal accessories post a -0.02 percent decline in July compared to the 1.05 percent increase this category received in June.”

Across the country, Victoria (5.15%) and Tasmania (4.48%) showed the strongest growth in July, closely followed by New South Wales (3.36%), the Australian Capital Territory (3.34%) and South Australia (2.68%). Queensland (1.65%) and the Northern Territory (0.68%) remained steady, while Western Australia (-1.50%) was in negative territory for the third month in a row.

“With many businesses celebrating their end of financial year functions, Cafés, restaurant and takeaway food services saw a moderate to high year-on-year growth of 2.9 percent,” Mr Zimmerman said.

“We also saw the Pharmaceutical, cosmetic and toiletry category receive a 3 percent year-on-year increase with this year’s winter ending on a cold note.”

Moving forward, the ARA would like retailers to see external factors put out of mind for retailers, who are hoping for a consumer confidence boost to assist with sales.

“Retail can only survive with increased business and consumer confidence,” Mr Zimmerman said.

“And this confidence is driven by personal tax cuts and a strong and stable Government.”

Monthly Retail Growth (June 2018 - July 2018 seasonally adjusted) 

Other retailing (1.70%), Cafes, restaurants and takeaway food services (0.61%), Food retailing (0.34%), Household goods retailing (-1.20%), Department stores (-1.89%) and Clothing, footwear and personal accessory retailing (-1.97%).

Queensland (0.77%), Victoria (-0.02%), New South Wales (-0.15%), Tasmania (-0.33%), South Australia (-0.33%), Western Australia (-0.58%), Australian Capital Territory (-0.62%) and Northern Territory (-1.60%).

Total sales (-0.01%).

 

Year-on-Year Retail Growth (July 2017 – July 2018 seasonally adjusted)

Food retailing (4.04%), Cafés, restaurants and takeaway food services (2.90%), Other retailing (2.86%), Clothing, footwear and personal accessory retailing (2.74%), Household goods retailing (1.08%) and Department stores (0.63%).

Victoria (5.15%), Tasmania (4.48%), New South Wales (3.36%), Australian Capital Territory (3.34%), South Australia (2.68%), Queensland (1.65%), Northern Territory (0.68%) and Western Australia (-1.50%),

Total sales (2.89%).

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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QRC welcomes Qld Alumina drought donation

THE Queensland Resources Council (QRC) has welcomed a contribution by Queensland Alumina Limited (QAL) of $35,000 worth of hay to the drought relief organisation Rural Aid.

QRC chief executive Ian Macfarlane said the resources sector and the Queensland Government had rallied together to help support farming communities affected by the drought.

“I’d like to personally thank Queensland Alumina for providing around 350 large bales of much needed hay to farmers which was sourced from the refinery’s land in Gladstone,” Mr Macfarlane said.

“This week New Hope Group donated $50,000 to Aussie Helpers while Shell Australia ($100,000), Rio Tinto ($100,000) and Santos ($116,000) contributed funds to the Queensland Drought Appeal along with the Queensland Government’s $100,000 contribution.

"Arrow Energy provided lunch for 550 farmers for Beef Week, along with $10,000 towards feed for livestock at the Ekka."

Mr Macfarlane said all droughts bring extreme hardship and the impact flows through to the local butcher, barber and supermarket.

“Everyone feels the economic pain when the farms are in trouble. I strongly encourage everyone if they can to dig deep and donate what they can.”

www.qrc.org.au

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Resources sector will dig into Advance Queensland review

THE Queensland Resources Council (QRC) has welcomed the Palaszczuk Government’s announcement of a review of its signature Advance Queensland policy to promote home-grown innovation.

QRC chief executive Ian Macfarlane said to support almost 300,000 jobs and deliver 80 percent of Queensland’s exports, the resources sector adopts and develops innovation for sustainable, competitive and safe development of the State’s mineral and petroleum reserves.

“The world wants what we have, particularly for infrastructure, growth in renewables, electric vehicles and battery storage,” Mr Macfarlane said.

“To supply the cutting edge, the resources sector is at the cutting edge to ensure we are sustainable, competitive and safe.

“In announcing the Advance Queensland review today, I welcome the specific reference to mining by Innovation Minister Kate Jones.”

Minister Jones said: “Queensland’s strengths are long-term industries such as agriculture and mining and we must make sure we provide the investment in advanced technologies to ensure that we continue to be world leaders in these industries which provide long-term sustainable jobs."

Mr Macfarlane said: “On behalf of the resources sector, the QRC will be an active contributor to the Advance Queensland review.”

www.qrc.org.au

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QRC welcomes collaborative approach to domestic gas supply

THE Queensland Resources Council (QRC) has welcomed the Palaszczuk Government’s granting of an Authority to Prospect to Central Petroleum for exploration in the Surat Basin. 

QRC chief executive Ian Macfarlane said Central Petroleum would supply gas for domestic use only to the State’s largest manufacturer Incitec Pivot to support the employment of 400 workers and power the Gibson Island fertiliser plant.

“Once again we see Queensland holding the key to sustaining a long-term future for East Coast jobs and industries,” Mr Macfarlane said.

“This is another example of Queensland getting on with the job to responsibly increase gas supply, drive down prices and secure jobs.

“I applaud the Palaszczuk Government’s innovative approach to delivering domestic gas and industry for partnering together to boost the State’s manufacturing industry.”

Mr Macfarlane said today’s announcement comes six months after Central Petroleum was announced as a successful tenderer as part of the Queensland Government’s Land Release Program.

“Queensland is the case study that works, and other states ignore it at their peril,” he said.

“New South Wales and Victoria can’t expect Queensland to continue to supply, and subsidise, their own gas users when each of those states has either a handbrake or a full-blown ban on any gas development.”

The QRC claims Queensland's resources sector now provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State all from 0.1 percent of Queensland’s land mass.

www.qrc.org.au

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QRC welcomes New Hope for farmers in drought donation

THE Queensland Resources Council (QRC) has welcomed a $50,000 contribution by New Hope Group to the drought relief organisation Aussie Helpers to help support farming communities affected by the drought.

QRC chief executive Ian Macfarlane said resources and agriculture had a long and proud history of working together.

“The resources sector has played its part by building infrastructure which farmers use to service their farms and farmers have swapped the Akubra for a hard hat to work in mines delivering a skills boost to the sector,” Mr Macfarlane said.

“All droughts bring extreme hardship and the impact flows through to the local butcher, barber and supermarket. Everyone feels the economic pain when the farms are in trouble.

“I strongly encourage everyone if they can to dig deep and donate what they can.

“I congratulate New Hope Group for its contribution along with Shell Australia $100,000, Rio Tinto $100,000 and Santos ($75,000 + $41,000 in cattle sales at the Ekka) which contributed funds to the Queensland Drought Appeal.”

Arrow Energy provided lunch for 550 farmers for Beef Week, along with $10,000 towards feed for livestock during the Ekka.

www.qrc.org.au

www.newhopegroup.com.au

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ACCC considering collective bargaining exemption

THE ACCC is seeking feedback about a potential ‘class exemption’ to allow small businesses, agribusinesses and franchisees to negotiate collectively with their customers or suppliers, including franchisors.

The ACCC discussion paper published last week sets out how a collective bargaining class exemption could operate, who would qualify, and what conditions would apply. Collective bargaining by a group of businesses is currently not allowed under Australian competition law, unless the group first obtains formal approval from the ACCC.

A collective bargaining class exemption would provide a ‘safe harbour’, so businesses that qualify can collectively bargain without the risk of breaching competition law.

“Businesses can sometimes be better off negotiating with their customers or suppliers as a group. Working together, they may be able to negotiate more efficiently with larger businesses to achieve better terms and conditions than they can on their own,” ACCC deputy chair Mick Keogh said. “Businesses can already seek case-by-case legal protection to collectively bargain through an ACCC ‘authorisation’ or ‘notification’, but this requires the group to submit an application with supporting information and pay a lodgement fee.

"These processes are public and can take a number of months to finalise,” Mr Keogh said. “In contrast, once a collective bargaining class exemption is in place, eligible businesses would automatically get an exemption. This would allow those businesses to gain easier access to the benefits of collective bargaining and begin negotiating sooner.

"Over the years the ACCC has considered many collective bargaining arrangements. Most come from groups of primary producers or other small businesses wanting to collectively bargain with a larger business; for example, farmers wanting to bargain with the company who buys their produce.

“This has given us a good evidence base about the types of collective bargaining that produce public benefits and are unlikely to harm competition, and are therefore likely to be suitable for this exemption,” said Mr Keogh.

The discussion paper is available at: Collective bargaining class exemption

The ACCC is inviting feedback on these issues by 21 September 2018.

Background

From 6 November 2017, the ACCC has the power to make ‘class exemptions’ for specific types of business conduct. This new power is in addition the ACCC’s existing authorisation and notification processes that allow businesses to seek legal protection for arrangements that risk breaching competition law. Collective bargaining is the first type of class exemption the ACCC is considering under this new power.

www.accc.gov.au

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Master Builders welcomes Morrison ministry

MASTER BUILDERS Australia has congratulated Scott Morrison on becoming the 30th Prime Minister of Australia and the announcement of his Ministry.

“The Prime Minister’s recognition of the importance of industrial relations to a strong economy is important and Master Builders looks forward working with the Kelly O’Dwyer in her new role as the Minister for Jobs, Industrial Relations and Women,” Denita Wawn, CEO of Master Builders Australia said. 

“Small business and vocational skills are a major focus for Master Builders. There are more small businesses in building and construction than any other sector of the economy and our industry trains more apprentices than any other.

"We look forward to the strong focus that Senator Michaelia Cash will bring to the Small and Family Business and Vocational Skills portfolio,” she said.

“It’s particularly welcome that these portfolios have been returned to Cabinet,” Ms Wawn said. 

“Master Builders also congratulates the Alan Tudge as Minister for Cities, Urban Infrastructure and population. We know the importance of this portfolio for the productivity and livability of our cities and for important issues such as housing affordability and we look forward to working closely with him,” she said. 

“Finally, Master Builders thanks former Prime Minister Hon Malcolm Turnbull for this service to the nation. His achievement in legislating the return of the ABCC is greatly appreciated by our industry,” Denita Wawn said. 

www.masterbuilders.com.au

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