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Housing supply pipeline shrinks in June

THE Reserve Bank of Australia’s decision to hold interest rates is a welcome reprieve to households as ABS data released today shows more bad news for Australia’s housing crisis with new home building approvals falling by 7.7 percent in June, said Master Builders Australia CEO Denita Wawn.

“We can already see the impact of interest rate rises exacerbating the housing crisis," Ms Wawn said.

“Attention needs to be turned to addressing the structural undersupply challenges of the housing market. The rental market is feeling the brunt of this pressure with higher-density home building approvals sinking by 21 percent in June.

“New apartment and unit building is a key source of new supply for Australia’s rental market. These results come on top of last week’s figures showing that rental inflation has shot to its highest rate in 14 years.

“Sadly, the uptick in higher density approvals in May was short-lived with approvals returning to low levels since before the pandemic. Right now, many new home building projects are failing to get off the ground due to the combination of high costs and a declining investment appetite, inflamed by rising interest rates.

“We need to see governments working to make it easier for new projects to get the green light by kickstarting private investment and reducing development costs and delays," she said.

“Taxes, regulations and the industrial relations environment all have an impact on the cost of construction.

“The building and construction industry continues to implore the Opposition and crossbench to pass the Housing Australia Future Fund legislation,” Ms Wawn said.

www.masterbuilders.com.au

 

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Treaties Committee considered WTO Fisheries Subsidies Agreement

THE Joint Standing Committee on Treaties (JSCOT) held a public hearing yesterday into the Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization: Fisheries Subsidies Agreement.

Committee Chair, Josh Wilson MP said, “The proposed Agreement is important in ensuring global food security and protecting livelihoods. The Agreement contributes to ocean sustainability and addresses the decline of global marine capture fisheries resources.”

The Agreement prohibits the granting or maintaining of subsidies for vessels engaged in Illegal Unreported and Unregulated fishing, subsidies for fishing or fishing related activities regarding an overfished stock, and subsidies for fishing or fishing related activities in the unregulated high seas.

Mr Wilson said, “The Agreement provides for targeted technical assistance and capacity building for developing country members which is important in ensuring that all members can meet the requirements of the Agreement.”

The committee heard from officials from the Department of Foreign Affairs and Trade (DFAT) and other stakeholders.

The hearing was able to be accessed online and details are available on the Committee website, along with further information about the inquiry.

 

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PJCIS satisfied with operation of intelligence agencies in a changing security environment

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has tabled its annual review of six Australian intelligence agencies. The review, covering the 2020-2021 period, found that amidst a changing strategic environment and facing the significant impact of COVID-19, Australia’s intelligence agencies largely worked in an effective, and increasingly collaborative, manner.

"The committee found that, on the whole, agencies performed their roles well, particularly considering the challenging operational environment faced over the reporting period," Committee Chair, Peter Khalil MP said.

The committee made four recommendations.

Noting the increasing phenomenon of harmful disinformation during 2020 and 2021, the committee recommended that the Director-General of Security consider opportunities to report to Australians on the prevalence of disinformation, misinformation and harmful propaganda that threaten Australia’s national security.

Two further recommendations focused on improving the sharing of information with the committee by intelligence agencies as well as the Auditor-General. The remaining recommendation addressed staffing within the National Intelligence Community (NIC), and recommended that the Office of National Intelligence work with the NIC to develop consistent data collection on staff movements, with a focus on attraction and retention of staff to the NIC.

Mr Khalil said, "The people who work in Australia’s intelligence agencies are our greatest asset. By developing a whole-of-NIC recruitment and retention strategy, Australia will be better positioned to deliver on its intelligence priorities.

"This includes securing a recruitment pipeline through effective security clearance processes as well as maintaining the ‘value-proposition’ agencies offer, to remain market competitive," Mr Khalil said.

The committee’s report can be found at this link.

 

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Promising results of new Alzheimer’s drug published – early diagnosis is key says Dementia Australia

DEMENTIA AUSTRALIA has welcomed the publication of the results of a trial showing that a new drug, donanemab, has been able to slow the progression of symptoms of early Alzheimer’s disease.

Dementia Australia CEO Maree McCabe AM said this drug was an exciting new development and another step forward in expanding the number of treatments for dementia. 

“These results provide much needed hope for people who are developing symptoms, have mild cognitive impairment or who are in the early stages of Alzheimer’s disease,” Ms McCabe said. 

“With dementia the second leading cause of death of Australians, and the leading cause of death of Australian women, we welcome any steps taken towards improving the lives of people living with dementia, their families and carers. 

“This research also highlights the importance of early diagnosis so people can access treatment and support as soon as possible,” Ms McCabe said.

“We need to raise awareness and understanding of dementia to reduce discrimination and stigma so we can ensure people with concerns about their cognition are seeking information and support as early as possible.

“We know the earlier people access support and services the better their health, care and lifestyle outcomes.

“Donanemab will need to be approved by the Therapeutic Goods Administration (TGA) for use in Australia. It also comes with possible side effects that need to be carefully monitored by health professionals,” Ms McCabe said.

The drug, developed by pharmaceutical company Eli Lilly, works by inducing antibodies designed to attach to and remove amyloid plaques from the brain. 

Chair of Dementia Curtin University and Dementia Australia, Blossom Stephan said the results of the trial were encouraging.

“The trial found that for participants with mild cognitive impairment and mild dementia, donanemab slowed cognitive decline by up to 35 percent which is very promising,” Professor Stephan said. 

“This research also highlights the need to ensure that healthcare services are equipped to deliver the intervention as well as make sure that access to treatment is equitable and available to everyone.” 

Dementia Australia dementia advocate, Bill Yeates, who was diagnosed with younger-onset-dementia in 2019, said the results were remarkable. 

“This demonstrates that it is possible to significantly slow down the rate of cognitive decline through the removal of amyloid beta (plaques) from the brain,” Mr Yeates said. 

“For me it’s that ‘ray of hope’ that I believed would happen one day, where people living with dementia can have a future. One where you can lead a better life, one that you value.” 

The results were published in a leading international journal and presented the Alzheimer's Association International Conference in Amsterdam. 

 

About Dementia Australia

Dementia Australia is the source of trusted information, education and services for the estimated more than 400,000 Australians living with dementia, and the more than 1.5 million people involved in their care. The organisation advocates for positive change and support vital research. It supports people impacted by dementia, and to enable them to live as well as possible. For support, contact the National Dementia Helpline on 1800 100 500. An interpreter service is available. The National Dementia Helpline is funded by the Australian Government. People looking for information can also visit dementia.org.au

 

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Planners, builders and insurers unite to call for urgent planning reform

STATE GOVERNMENTS must urgently overhaul their approach to land use planning to ensure no more homes are built without regard to risk on flood plains, organisations representing planners, builders and insurers said today.

In response to the flood emergency of recent years, the Insurance Council of Australia (ICA), Master Builders Australia (MBA) and the Planning Institute of Australia (PIA) today, supported by the Australian Local Government Association (ALGA), convened the inaugural National Industry Roundtable: Land Use Planning and Resilience.

Around 60 experts from government, financial services, property, and community joined the discussion, which called on state and territory governments when thinking about future housing challenges, to urgently rethink planning rules so no more homes are built in high-risk flood-prone locations.

communique from the three sponsoring organisations outlining recommendations for reform has been released and will be sent to planning ministers, who also met today to discuss this issue.

The roundtable heard that all Australians are bearing the costs of worsening extreme weather events, and these costs are increasing because of historic planning decisions.

Attendees agreed that without reform, population pressures and inadequate planning laws will see further development of flood-prone land putting lives at risk, costing taxpayers billions of dollars in recovery and remediation, and adding to an already strained insurance sector.

Andrew Hall, Insurance Council of Australia CEO said, "The flood events of 2022, with almost 300,000 disaster-related claims costing around $7 billion, has driven up premiums and has resulted in affordability constraints for those at highest risk. Without insurance, homeowners likely can’t access a mortgage, and that is the wrong direction for our country.

"Today’s roundtable set out the actions governments must take to ensure future financial losses to homeowners, businesses and the community are avoided, and better government planning and investment is taken seriously."

Master Builders Australia CEO Denita Wawn said, "With a housing crisis at the forefront for many communities and a growing population, we must ensure that our planning laws are fit for the future and take an appropriate risk-management approach. Governments are encouraged to take a balanced approach to development and resist a default of building out with alternative considerations such as building up to take the pressure off the housing system and supported with infrastructure that is more resilient and adaptable to extreme weather events.

"Without fit for purpose planning laws technical building regulation will always fail. The housing industry needs clear and concise rules, that allow the industry to function and the community to have confidence."

Comment attributable to , CEO Planning Institute of Australia CEO Matt Collins said, "Planning is a critical tool for influencing the level of future disaster risk, and our changing climate means we need to act now to limit the impact of extreme weather on our communities. By adopting new risk-based policies and investing in better mapping and data, we can ensure development avoids or minimises exposure to flood hazards.

"Australia’s town planners support governments taking clear action to ensure more climate-conscious planning systems, and this roundtable is an important step towards this goal."

Australia Local Government Association president Linda Scott said, "Australia’s 537 councils play a vital role in building resilient communities, assisting in every corner of the nation to ensure our communities can better prepare for, respond to and recover from increasing natural disasters.

"It’s crucial we rebuild damaged local infrastructure to a more resilient standard. Councils will continue to strongly advocate for ‘building back better’ to be a core value and overriding principle of joint state/federal Disaster Recovery Funding Arrangements. On behalf of local governments, I look forward to attending the Planning Ministers’ meeting."

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Audit Committee to examine the Annual Performance Statements

Parliament of Australia

The JCPAA will welcome the Auditor-General and other representatives from the Australian National Audit Office (ANAO), in addition to the Department of Finance, and the entities included in ANAO’s 2021–22 Annual Performance Statements audits, to discuss the issues raised in that report.

Committee Chair Julian Hill MP said the financial information of a given entity alone could not determine if publicly funded programs were achieving their intended outcomes.

"Performance statement auditing is vital for this assessment," he said.

"This new function of the ANAO to audit performance statements has been fully supported by the committee since its pilot stages and will assist and improve the transparency, reliability, and quality of performance reporting across the Commonwealth," Mr Hill said.

"The committee looks forward to discussing the ANAO’s findings and deliberating on the future scope and purpose of these audits."

Details for the public hearing are:

Date: Friday, 28 July 2023Time: 10am – 1.15pmVenue: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live and will be accessible from the Parliament House website at https://www.aph.gov.au/News_and_Events/Watch_Read_Listen.

Further information about the inquiries is available on the Committee website.

 

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Return of skilled workers eases acute shortage of skilled trades - HIA

THE Housing Industry Association (HIA) Trades Report for the June Quarter 2023 shows continued improvement in the availability of skilled tradespeople across the country, according to HIA senior economist Tom Devitt.

The HIA Trades Report released today provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.

“While the Index still reflects some of the most acute shortages of skilled tradespeople since HIA started this report in 2003, the trajectory is most encouraging,” Mr Devitt said.

“The Report’s Trades Availability Index registered -0.62 for the June Quarter 2023, compared with the -0.92 peak a year ago. An index of less than zero represents a shortage of tradespeople and an index of greater than zero represents a surplus.

“Some of the greatest improvements in availability over the last year have been in the trades of carpentry, roofing, and bricklaying, precisely where the most acute shortages had been a year ago.

“The return of skilled workers since the re-opening of Australia’s international borders in late 2021, is making a difference to a number of sectors, including house and apartment construction, and manufacturing businesses," Mr Devitt said.

“As tradespeople have become more available, the price of trades has also slowed. The price of skilled trades increased by 3.4 percent in the last year, compared to the 10 percent peak a year earlier. This is much closer to the 2 percent average annual increase that prevailed in the decade-and-a-half before the pandemic.

“The outlook is that as home building activity declines, demand for skilled trades will slow further," he said.

“The rise in the RBA’s cash rate over the last year has seen a significant drop in new work entering the pipeline. The record volume of projects awaiting commencement has shrunk, but there are still more than 100,000 houses under construction around the country.

“Builders have struggled to complete these projects, held back by the materials and labour shortages that have plagued the industry in the last few years," Mr Devitt said.

“Next year, the rise in interest rates that we have already seen is expected to produce the weakest year of new house commencements since 2012. An increasing number of projects will also reach completion.

“This is expected to produce a further easing of trades shortages, with the volume of homes under construction shrinking rapidly from late this year.

“Next year will be the ideal time for governments to start investing in new public housing stock. The timing of this investment will not only ensure that governments are able to gain the greatest return on their investment, as costs and delays will be at a minimum, but also ensure that skilled tradespeople are not lost to other industries and that the industry can rebound on the other side of this RBA-induced trough,” Mr Devitt said.

www.hia.com.au

 

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PJCIS to review rules for sharing foreign influence scheme information

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has commenced a review of rules made under subsection 53(2) of the Foreign Influence Transparency Scheme Act 2018 (FITS Act), relating to sharing information obtained under the Foreign Influence Transparency Scheme (FITS).

Subsection 53(3) of the FITS Act requires the committee to review rules made prescribing a new purpose for which information obtained under the FITS may be communicated to prescribed persons; and to report its comments and recommendations to each House of the Parliament before the end of the 15 sitting days’ disallowance period for that House.

The new rules amend the 2018 FITS Rules to authorise the Secretary of the Attorney-General's Department to communicate scheme information to the Minister and Department responsible for the Foreign Arrangements Scheme.

The Foreign Arrangements Scheme is administered by the Department of Foreign Affairs and Trade (DFAT). It requires State and Territory entities to notify the Minister for Foreign Affairs of pre-existing and prospective arrangements with foreign entities; and allows the Minister to cancel, vary or prevent an arrangement from proceeding if it is inconsistent with Australia's foreign policy or adversely affects Australia's foreign relations.

A small number of entities may be within the scope of both the FITS and the Foreign Arrangements Scheme. In such cases, sharing information under the Rules would assist DFAT to administer the Foreign Arrangements Scheme and would improve the interoperability of the two schemes.

The rules under review can be found at the following link - Foreign Influence Transparency Scheme Amendment Rules 2023.

Submissions to the Committee’s review are invited by Friday, August 11, 2023. Further information about making a submission to a parliamentary committee is available here.

Further information on the inquiry can be obtained from the Committee's website.

 

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Intelligence and Security committee to review relisting of three terrorist organisations

THE Parliamentary Joint Committee on Intelligence and Security today commenced a review of the relisting of Islamic State, Boko Haram and Islamic State West Africa Province as terrorist organisations under Division 102 of the Criminal Code Act 1995.

The Australian Government first listed Islamic State in 2005, while Boko Haram and Islamic State West Africa Province have been listed under different names since 2014. The three organisations have been re-listed as terrorist organisations for a further three-year period commencing on July 1, 2023.

The relisting triggers the ongoing application of a number of offences under the Criminal Code which relate to membership of, support for, or association with the organisations.

All three organisations are religiously motivated violent extremist groups which pursue an extreme interpretation of Sunni Islam. Of these groups, Islamic State (IS) has the largest global footprint, and since it was last listed by the Australian Government IS has continued to undertake terrorist attacks in Syria, Iran, Israel, Iraq and Austria.

Boko Haram and Islamic State West Africa Province both operate primarily in Nigeria, and have reputations for adherence to an extremist ideology that promotes sectarian violence. Since they were last listed both groups have undertaken attacks against civilians and government officials.

Under s 102.1A of the Criminal Code, the committee may review listings of terrorist organisations and report its findings to each House of the Parliament within the 15 sitting day disallowance period for the regulations.

Members of the public are welcome to make submissions to this review. Submissions are requested by Friday, August 11, 2023.

Further information on the inquiry can be obtained from the committee’s website.

 

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Supermarkets, alcohol, tech, and care services next on the House Economics Committee’s agenda

THE House Standing Committee on Economics will next focus its attention on competition and dynamism in the supermarket, alcohol, and technology sectors, as well as in care services, as part of its inquiry into economic dynamism, competition and business formation.

Peter Harris, former chair of the Productivity Commission, will also discuss competition in the domestic airline industry. The committee’s next set of public hearings will be held via videoconference on July 25 and 26.

Committee Chair, Daniel Mulino, said the committee looked forward to hearing from Coles, Woolworths, Metcash, the Australian Food and Grocery Council, and the National Farmers Federation.

“The grocery retail sector is fundamental to the everyday lives of Australians," Dr Mulino said. "There are also high levels of market concentration in the sector, so it’s vital that we better understand the effects such concentration have on competition, particularly around price, for consumers.

“The supermarket sector also has a strong hold on the packaged alcohol market, which again has implications for consumers around price and on smaller players in the sector.

“So we will be probing this area as well,” Dr Mulino said, “especially with the local craft beer industry gaining in popularity. Australia’s independent brewers are renowned for their innovation so the committee is eager to ensure diversity in the beer industry and that our home-grown companies can continue to thrive."

The committee will hear from Coopers and the Independent Brewers Association.

Peter Harris, former chair of the Productivity Commission and author of the recent review into the Sydney Airport Demand Management Scheme, will also appear.

“Peter will shed light on competition in Australia’s commercial aviation market and on the outlook for business dynamism," Dr Mulino said.

Epic Games and Free TV Australia will also appear at this week’s hearings to give their perspective on the impact of Big Tech companies on their business models and on competition in the online gaming and broadcasting sectors.

Other companies appearing before the committee will be online platforms Mable and HireUp, which work in the disability and aged care sectors. Victorian Government Procurement will also appear, following on from appearances before the committee of social enterprises.

“This will allow the committee to complete its assessments on competition and productivity in the care sector, which is often under-appreciated as a driver of employment and innovative service delivery within the broader economy,” Dr Mulino said.

More details about the inquiry, including the full terms of reference, are available on the committee’s website.

Public hearing details

Date: Tuesday 25 JulyTime: 9am to 2.45pm AESTLocation: Videoconference

Date: Wednesday 26 JulyTime: 10am  to 4pm AESTLocation: Videoconference

The public hearing will be broadcast live at https://www.aph.gov.au/live.

 

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Audit Committee announces this Friday’s procurement hearing with John Margerison cannot proceed

THE Joint Committee of Public Accounts and Audit (JCPAA) authorised an Order to be issued on June 27 to Mr John Magerison requiring him to answer questions put to him on April 26, 2023, and summonsing him to appear before the committee in a public hearing this Friday,  July 28..

However, the part of this Friday’s public hearing into procurement at Services Australia and the NDIA which was to hear from John Margerison can no longer proceed.

Mr Margerison’s lawyer has informed the committee that Mr Margerison is now resident overseas, having severed all ties with the country of Australia many weeks ago. Mr Margerison’s lawyer has not disclosed Mr Margerison’s whereabouts.

Further, as Mr Margerison claims via his lawyer to now be located and resident overseas, he now considers himself outside the jurisdiction of the Parliament.

Committee Chair, Julian Hill said the JCPAA would consider the letter from Mr Margerison’s lawyer at its next private meeting.

Mr Hill said, “That Mr Margerison’s lawyer now claims he has left and severed all ties with Australia is a somewhat surprising turn of events indeed. Mr Margerison’s whereabouts remains a matter of great mystery.

“Notwithstanding Mr Margerison’s refusal to fully address the questions put to him in April and appear this Friday, the JCPAA will continue to conduct this inquiry in a proper fashion. The committee will make findings based on the evidence before it. It remains within the JCPAA’s power to recommend referrals to other investigative bodies with additional resources and powers.”

The remainder of the hearing – which relates to the JCPAA’s inquiry into annual performance statements – is unaffected and will proceed.

Further information is available on the inquiry website.

 

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