THE Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against German company Audi Aktiengesellschaft (Audi AG), its Australian subsidiary Audi Australia Pty Ltd (Audi Australia), and their owner, German company Volkswagen Aktiengesellschaft (VWAG).

THE screening of non-sensitive commercial real estate and internal reorganisation (restructure) foreign investment applications will be undertaken by the ATO from April 1, 2017.

This is an internal administrative change by the Australian Government and will not require any action by Foreign Investment Review Board (FIRB) applicants.

www.ato.gov.au

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THE Australian Competition and Consumer Commission has issued a final determination denying authorisation to 16 insurance companies to agree to a cap of 20 per cent on commissions paid to car dealers who sell their add-on insurance products.

THE Queensland Resources Council has backed a Federal Government report calling for a ban on foreign-funded donations to activist groups.

One of the recommendations in the report on foreign donations, tabled in Federal Parliament today, was to extend a foreign donations ban to all other political activist groups. This would include preventing foreign funds being channelled through organisations engaging in political activities that were not subject to regulation under current laws.

QRC Chief Executive Ian Macfarlane said it was high time that donations to the anti-development activists were put under the microscope in line with other politically-motivated groups.

“Funding from overseas donors to these groups is disrupting and delaying job creating projects in Queensland, while providing a sophisticated tax reduction scheme to their personal wealth,” Mr Macfarlane said.

“Our country must stop foreign groups interfering in our resources development projects that have undergone immense scientific and social scrutiny before being approved by democratically elected governments in Australia.

“It seems ridiculous that someone living in Manhattan can be the financial backers of green activist tactics that hold up a project in Moranbah and cost Queenslanders job opportunities.”

www.qrc.org.au

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AUSTRALIAN Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell has refuted claims made by the Australian Bankers’ Association’s (ABA) chief executive Steven Münchenberg that eliminating all non-monetary covenants from small business loans under $5 million would raise the risk of lending to small business, saying the ABA – and the banks – are contradicting themselves in arguing against the reform.

“On the one hand the banks say they rarely use non-financial default clauses, but on the other, they say to remove them would increase risk for the banks.  If you don’t use them, how on earth could it possibly increase the banks’ risk to get rid of the clauses?” Ms Carnell said.

“It is disingenuous to say that removing these clauses would drive up the cost of borrowing for small businesses, given the banks already take into account a higher level of risk in their small business loan costs.

“You can’t have it both ways; you can’t have a loan agreement that moves all the risk to the borrower, while also imposing a higher interest rate on small business customers.

“Over the last few days we’ve seen banks commit to implementing this measure in varying degrees, yet here we have the ABA claiming the sky will fall in if our recommendation is adopted,” she said.

During today’s House Economics Committee hearing, Westpac executives said they’re committed to removing non-monetary covenants from all small business loans under $1 million (secured against property), with the view to extending this to most loans under $3 million (total loan facility).

ANZ include – but don’t apply – non-financial default clauses in loans under $1 million and now say they’re going to consider the future use – but not removal – of such terms in agreements for loans of up to $3 million (total loan facility); CBA has committed to removing non-monetary default terms from agreements for loans up to $1 million, and may raise this to $3 million (total loan facility) with carve-outs; while NAB say they’re opposed to the removal of non-monetary covenants.

“Aside from NAB, these are all steps in the right direction, and we’re listening to what the banks are saying on carve-outs, but fundamentally non-financial default clauses must be removed from small business contracts under $5 million if we’re to ensure all small businesses are safeguarded against what can be the devastating impacts of these clauses,” Ms Carnell said.

www.asbfeo.gov.au

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TO COINCIDE with International Women’s Day (IWD), the ACS – the professional association for Australia’s ICT sector – will today participate in the Women in Cyber event in Melbourne, an initiative of the Office of the Cyber Security Special Adviser within the Department of the Prime Minister and Cabinet.

Roundtable discussions will focus on the barriers to women choosing cyber careers, the reasons women leave the cyber industry and ways to address these problems.

The ACS has long been an advocate for advancing diversity in ICT to capture the full potential of the digital economy. Its 2015 Report, The Promise of Diversity, shows that Australia is a long way from filling the gender equality gap, particularly in ICT, where women comprise only 28 percent of the ICT workforce compared to 43 percent of the wider workforce. 

The shortfall is particularly acute in technical roles in the cyber security area, which has risen to the top of the international agenda as high-profile security breaches raise concerns around the potential impact on the global economy. Data from SEEK Employment Trends Report suggest that the number of cyber security roles advertised in Australia grew by more than 57 per cent year-on-year in February 2016. The opportunities for women to forge a career in cyber are many.

Chair of ACS Victoria, Maria Markman said, “The ACS is pleased to support the Women in Cyber event and we congratulate the Office of the Cyber Policy Special Adviser on this important initiative. 

“Addressing the barriers for women in ICT requires short and long-term initiatives, supported by genuine commitment by employers, educators and governments to collaboratively tackle these barriers. This event is a significant step forward.”

ACS vice president, Yohan Ramasundara said, “Through committed, outcome-focused leadership the ACS is working to address the ICT gender disparity at all stages of women’s education and careers towards a more gender balanced world.

“The ACS values the contribution of women and promote gender equality in the Australian ICT sector. On International Women's Day we celebrate the social, economic, cultural and political achievement of our female colleagues around the world. The theme for this year #BeBoldForChange  is a call for everyone of us to stand up and do our bit to help achieve womens full potential for a more prosperous future for us all.”

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A SUCCESSFUL Everest climber, former Telstra Business Woman of the Year finalist, and 30-year resources sector veteran has been recognised by the sector for her outstanding achievements.

Karen Alexander was presented the Exceptional Woman in Queensland Resources Award in Brisbane today by Minister for Employment and Industrial Relations Grace Grace, Queensland Resources Council (QRC) President Rag Udd and Women in Mining and Resources Queensland (WIMARQ) Chair Maria Joyce before a state-wide audience of more than 900 people.

They were attending, or viewing live via webcast, the annual QRC/WIMARQ International Women’s Day Breakfast and Resources Awards for Women presentation, hosted by BHP Billiton.

Karen, Manager of Strategic Alliances-Mining with Hastings Deering, was one of just two females among 800 male engineering students while studying for her mechanical engineering degree, and one of the first two females to ever complete this degree at the Queensland University of Technology (QUT).

And now, she is Hastings Deering’s first senior executive sales business leader.

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AUSTRALIAN Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said the responses today from CBA and ANZ to the ASBFEO bank inquiry recommendations fall well short of what’s needed to improve current small business lending practices.

“Judging by the responses of the big banks so far, it’s clear they’re not listening to the growing chorus of concern about the way they treat small business borrowers,” Ms Carnell said.

“Both banks bloviated today about supporting various recommendations we’ve made in our inquiry report, but the devil’s in the detail; when you dig a little deeper, there’s always conditions attached, and without definitive timelines for action, all of this talk means absolutely nothing.” 

Speaking at today’s House Economics Committee hearing, CBA CEO Ian Narev committed to removing non-monetary default terms, but only from agreements for loans up to $1 million, while ANZ CEO Shayne Elliott said his bank was only prepared to consider the future use – as opposed to removal – of non-monetary default terms in agreements for loans of up to $3 million.  It follows NAB’s unwavering refusal on Friday to remove any such clauses from small business loan agreements.

“We simply don’t think it’s reasonable for the banks to be able to default a small business loan when people are compliant financially, and we’re absolutely resolute in our recommendation that all non-financial default clauses be removed from small business loan contracts of up to $5 million,” Ms Carnell said.

“The banks say they rarely use these clauses for loan impairment, so why insist on their inclusion in the first place?  They claim that getting rid of them would drive up risk for the bank and cost for the borrower, but if they’re rarely used, how could this possibly be the case, not to mention the fact banks already factor-in the risk associated with small business loans, including small business loans secured against bricks and mortar such as the family home.

“Our inquiry heard heart-breaking stories from small business owners who’d been subject to such clauses, so for ANZ’s Graham Hodges to today maintain their inclusion is ‘good practice’ is just breathtaking,” she said.

Ms Carnell once again reinforced the practical need for the banks to change the way they define a small business.

“Mr Narev today said ‘there’s no magic number’ when it comes to stipulating what defines a small business loan facility.  In fact, there is such a number and it is $5 million,” Ms Carnell said.

“$5 million isn’t a figure we’ve plucked out of the air, it’s a figure supported by others including David Murray, and more recently Phil Khoury, who was appointed by the banks to scrutinise their own code of conduct.

“Anything below $5 million is clearly an out-of-date concept that does not represent the true lending picture of Australia’s small businesses. $5 million covers 98 per cent of loans to small business so I call on the banks to heed our advice – and that of others – and acknowledge they’re severely out of touch on this.

“We don’t want weasel words about supporting changes; we don’t want the banks to cherry-pick certain details from our recommendations that best suit them.  All of our recommendations are reasonable, do-able and do-able quickly, and all of them are designed to make a difference in the lives of small business people, and there’s absolutely no excuse for the banks to keep kicking the can down the road on this,” she said.

www.asbfeo.gov.au

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