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ACCC to front House economics committee in Canberra

THE House of Representatives Standing Committee on Economics will commence biannual public hearings with the Australian Competition and Consumer Commission (ACCC).

This process is similar to that used by the committee to review the RBA and APRA which are also scrutinised and held to account by the committee at biannual public hearings.

Committee Chair, Mr Craig Laundy said,“The ACCC has a vital role in promoting competition, fair trading and regulating national infrastructure for the benefit of all Australians. The ACCC’s role in promoting competition is particularly important as our economy transforms and rebalances activity following on from an enormous mining construction boom.”

The hearings will provide an opportunity for the committee to scrutinise the ACCC on its core objectives including how it maintains and promotes competition and remedies market failure, protects the interests and safety of consumers and supports fair trading in markets, and promotes the economically efficient operation and investment in monopoly infrastructure.

The committee notes the work of the Harper review into competition policy. The work is timely and heralds a new phase in competition policy which will help promote innovation, increase investment and help raise Australia’s productivity levels.

The first public hearing with the ACCC will be held in Canberra on Friday, 26 February 2016 with the full details shown below.

Public Hearing Details

Committee: House of Representatives Economics Committee
Venue: Committee Room 1R4, Parliament House, Canberra
Date: Friday, 26 February 2016
Time: 9.30am to 12.30pm

Webcast: The hearing will be webcast  http://webcast.aph.gov.au/livebroadcasting/

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Aussies to spend $2.3 billion on Boxing Day

AUSSIE SHOPPERS are tipped to spend $2.3 billion nationwide on Boxing Day 2015, according to the Australian Retailers Association (ARA), with a total of $16.8 billion to be spent from December 26 to January 15, 2016.

Post-Christmas spending estimates by the ARA and Roy Morgan Research indicate sales will be four percent higher than the same period last year, evidence of Australia’s growing love affair with bargains.

“Pre-Christmas 2015 saw record sales at retail stores, and we’re expecting to see a very similar growth story play out in the post-Christmas sales,” said Russell Zimmerman, Executive Director of the ARA.

“A rush of bargain hunters will be out in force on Boxing Day, with December 26 one of the biggest shopping days of the year across the country.

“Boxing Day heralds the opening of the post-Christmas sales period and is traditionally when the biggest savings can be made.

“Of course, the sales will continue beyond December 26 right through January, so for those who aren’t able to get to the shops on Boxing Day, there will be further opportunities to snap up some bargains,” Mr Zimmerman said.

Victoria will see the lion’s share of the post-Christmas shopping growth, up 5.6 percent to $4.2 billion across the 21-day period tracked by ARA and Roy Morgan, followed by NSW at 3.8 percent growth and $5.3 billion.

“All states are predicted to see healthy growth this year, as are all retail categories, although the ‘other’ category will shine particularly brightly in the post-Christmas sales with 6.1 percent growth to $2.3 billion, as will department stores at a 4.3 percent increase and $1 billion sales.”

When it comes to Boxing Day, the ARA anticipates that NSW and Victorian residents will spend the most at $750 million and $721 million respectively.

 

ARA ROY MORGAN POST-CHRISTMAS 2015/16 SALES PREDICTIONS

December 26, 2015 – January 15, 2016

 

Boxing Day 2016 sales

State

2016

NSW

$749,920,990

Victoria

$721,077,875

Queensland

$387,135,233

South Australia

$200,490,636

Western Australia

$115,976,991

Tasmania

$51,818,336

Northern Territory

$25,947,127

Australian Capital Territory

$48,957,876

NATIONAL

$2,301,325,065

(Australian Retailers Association)

 

2015/16 Post-Christmas Sales Growth by State

State

2014 post-xmas

Actual ($mil)

2015/16 post-xmas

Forecast ($mil)

Predicted growth

(%)

NSW

5127

5321

3.8%

Victoria

3997

4220

5.6%

Queensland

3309

3419

3.3%

South Australia

1049

1083

3.3%

Western Australia

1877

1943

3.5%

Tasmania

316

324

2.6%

Northern Territory

172

176

2.1%

Australian Capital Territory

288

295

2.6%

NATIONAL

16135

16781

4.0%

         

(ARA/ROY MORGAN)

 

2015/16 Post-Christmas Sales Growth by Category

Category

2014 pre-xmas

Actual ($mil)

2015/16 pre-xmas

Forecast ($mil)

Predicted growth

(%)

Food

6593

6815

3.4%

Household goods

2796

2905

3.9%

Apparel

1243

1291

3.9%

Department stores

1042

1087

4.3%

Other

2192

2326

6.1%

Hospitality

2269

2357

3.9%

NATIONAL

16135

16781

4.0%

(ARA/ROY MORGAN)

 About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ENDS

 

Victorian Chamber Internship Program launched

TODAY Victorian Chamber of Commerce and Industry President Mark Birrell launched the Victorian Chamber Internship Program, which will provide students with the opportunity to attain meaningful 'real world' work experience.

“Business needs work-ready graduates who have had exposure to, and involvement in, a professionally relevant work environment. Research shows that it is difficult for young people to get a job without this experience,” said Mr Birrell.

“This internship initiative by the Victorian Chamber will provide students with vital work experience. It will support the development of a skilled, adaptive and productive future workforce that is aligned to the needs of Victorian business.”

University of Melbourne Vice-Chancellor Professor Glyn Davis AC addressed the audience on the value of giving students the opportunity to acquire work experience to complement their university education.

The Program will see the Chamber invest over $1 million to help place more than 300 interns during a three year period. Participating businesses will meet all workplace employment requirements for the interns they take-on, including payment for work undertaken. These businesses will be encouraged to offer extended employment where possible.

A distinguishing feature of this Program is that the Victorian Chamber will provide the employer with a placement contribution of up to $3,000 to support the cost of each internship. Students employed as part of the Internship Program will be paid award wages and the Victorian Chamber contribution will cover, in addition to wages, other on-costs including superannuation, payroll tax and WorkCover premiums.

The Victorian Chamber’s university and business members strongly support the Program and will annually provide 100 higher education students with paid internships in some of Victoria’s most prominent and well-respected small, medium and large businesses.

Victorian Chamber member businesses will host up to 95 students and the Chamber will itself take five interns annually.

Interns will be engaged as employees and undertake a specific project with a focus on providing a meaningful learning experience, while delivering a tangible benefit to the host business. Placements will generally be for 120 hours, worked over a one month period.

Students will benefit from valuable work experience, networking opportunities and the chance of ongoing employment. Higher education providers will benefit from strengthened relationships with industry and the opportunity for their students to increase their practical skills and improve their employment prospects.

“This initiative will further strengthen the excellent working relationships we have with our business and university members and more importantly provide young Victorians with valuable work-ready skills,” said Victorian Chamber of Commerce and Industry Chief Executive Mark Stone.

The Victorian Chamber of Commerce and Industry is building on its strong record of training and apprenticeship success and business advocacy to promote the value of practical work experience.

The Victorian Chamber’s recent submission to the State Government’s VET Funding Review highlights the crucial need for industry and universities to build closer relationships. This is a significant step in that direction.

“Employers are demanding a greater level of work-readiness from graduates and higher-education providers are seeking to facilitate these experiences,” said Mr Stone.

“We are delighted to be working with business, the higher education sector and students on this significant project to build Victoria’s future workforce.”

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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AMMA welcomes new FWC appointments

THE resource industry welcomes four high calibre appointees to the Fair Work Commission (FWC) as Minister for Employment Michaelia Cash injects new business experience and practical competencies into Australia’s national workplace tribunal.

AMMA chief executive, Steve Knott, says new Deputy Presidents Melanie Binet and Richard Clancy, and Commissioners Katrina Harper-Greenwell and Jennifer Hunt, are high calibre, merit-based appointees well-placed to assist employers and employees in navigating Australia’s workplace laws now and into the future.

“It’s no secret that when last in government, Labor overwhelmingly slanted its appointments to its own industrial alumni, with 18 of the 27 new members to the tribunal coming from trade union or ALP-affiliated backgrounds,” Mr Knott says.

“Minister Cash’s new appointees have demonstrated business experience, including in managing complex resources and infrastructure projects, and should be welcomed by all with an interest in a balanced and modern workplace relations system, productive enterprises and diversity.

“It is further welcomed that Minister Cash, who is also Minister for Women, has improved the gender diversity of the FWC by appointing three additional women to the Commission, all bringing a wealth of practical experience to their new roles.”

Mr Knott says the Federal Opposition’s criticism of these appointments shows the ALP is ‘out of touch with the professional and modern workplace relations system Australia needs’.

“Mr O’Connor’s call for trade union alumni to continue to dominate FWC appointments in the 21st Century lacks credibility when just 11% of Australians working in the private sector choose to participate in trade unions,” Mr Knott says.

“Australian employers and employees need appointments to our workplace tribunal to better reflect 21st Century workplaces and the diversity of the Australian community.

“AMMA, which represents the national resource industry and manages the Australian Women in Resources Alliance, congratulates the Minister in making these 21st Century appointments and looks forward to further high calibre, well regarded individuals filling future tribunal vacancies.”

www.amma.org.au

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NSW Boxing Day trade Bill a windfall for retailers

THE Australian Retailers Association (ARA) has praised NSW Premier, Mike Baird, and the NSW Government for the successful passing of a Bill that will allow all retailers across the state to trade on Boxing Day this year.

NSW has been one of the only states in Australia to enforce Boxing Day retail closures, with only stores in the Sydney CBD and tourist areas allowed to trade.

Russell Zimmerman, Executive Director of the ARA, said the new ruling to allow all retailers to trade on Boxing Day is a fantastic outcome and will eliminate the uneven playing field that was fostered by the previous law.

“The passing of this Bill is a windfall for the majority of NSW retail businesses. It will allow those who would like to trade on Boxing Day outside of tourist areas and the Sydney CBD to cash in on this lucrative day of consumer spending,” Mr Zimmerman said.

“The previous law was a draconian decision which left NSW, the largest economy in Australia, behind the rest of the country and blocked thousands of retailers from opening on the biggest sale day of the year.

“We now live in a seven day consumer economy, and shoppers are demanding to be able to shop whenever and however they want. This is a common sense decision that will benefit retailers and consumers alike.

“The ARA thanks the Government, and Premier, Mike Baird, for his work in pushing for this change, and Fred Nile’s Christian Democrat Party for its support, which will see the NSW economy benefit from the huge profits that can be made by retailers opening on Boxing Day,” said Mr Zimmerman.

It is important to note that in 2015, as Boxing Day falls on a Saturday, both December 26 and Monday December 28 will be classified as public holidays and penalty rates of 250 percent will apply for employees rostered to work on these days.

The ARA is currently engaged in a review of General Retail Industry Award 2010 (GRIA) with the view to lowering of penalty rates to reduce the costs for retailers trading on Sundays and public holidays, with an outcome expected in the first half of 2016.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

For more information, visit www.retail.org.au or call 1300 368 041.

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VTIC calls for Shipwreck Coast upgrade masterplan to be backed-up by significant state funding

THE Victoria Tourism Industry Council (VTIC) has welcomed the Andrews Government’s recently released masterplan to upgrade the Shipwreck Coast, but has called for the strategy to be supported by further funding for the implementation of the plan’s measures.

“The tourism sector is pleased to see the masterplan to improve this iconic visitor destination, however we want to see significant funding for these much-needed initiatives,” said VTIC Acting Chief Executive Erin Joyce.

Industry was pleased to see the announced $4.4 million to improve the sewer facilities at the Twelve Apostles Visitor Centre, as called for by local tourism operators. However, VTIC calls on the Andrews Government to commit significant funding in the coming months to the $174 million upgrade.

Stage 1 priorities include:

$10 million to improve the interpretation facilities and amenity at the Twelve Apostles kiosk site;

$100 million over two years to commence infrastructure improvements throughout the masterplan region, such as:

  • Establishing both a Visitor Experience Centre and Park and Ride Transport Hub in Port Campbell;

  • Upgrading the Port Campbell, Princetown and Peterborough townscapes;

  • Commencing construction of the Twelve Apostles Trail, linking to the Great Ocean Walk trail;

  • Establishing Visitor Hubs at Princetown and Peterborough; and

  • Planning for the proposed Glenample Visitor Experience Centre. 

“This funding will attract private sector investment in walking trails, eco-lodges and larger scale accommodation, as well as adventure, and health and wellness developments in appropriate areas,” said Ms Joyce.

In addition, $500,000 is needed to develop an implementation plan for the rest of the projects, to give business certainty regarding the full implementation of the masterplan.

Due to the strong international demand to visit the area, all projects included in the masterplan must be completed within 10 years, rather than 20 years as currently planned.

“The masterplan forecasts that, when fully implemented, the projects will add $214 million per annum to the regional economy and create over 1,000 jobs in the area,” said Ms Joyce.

“Given this significant potential and the fact that the coast is one of Victoria’s greatest tourism drawcards, we call on the government to allocate significant funding as a priority for 2016.”

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute more than $20 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

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COSBOA backs ACCC on Woolworths ruling

THE Council of Small Business Australia (COSBOA) today congratulated the Chairman of the ACCC Rod Sims on again showing the mettle to confront the appalling behaviour of dominant businesses and taking them to court.

The ACCC has taken action against Woolworths for unconscionable conduct and the mistreatment of suppliers. This follows similar successful action taken in 2014 against Coles.

Peter Strong, CEO of COSBOA, stated: “The recent Innovation Statement from Malcolm Turnbull and Christopher Pyne will become hollow unless we as a nation can confront and defeat the enemies of innovation and the parasites of the business community, Wesfarmers and Woolworths.

“We need to give the regulator the power required to ensure this behaviour is stopped before it has time to cause greater damage and that can be achieved by strengthening Section 46 of the Competition and Consumer Act.  What is called ‘the effects test’ must be introduced with more rigor than what the Harper Report has recommended,” concluded Mr Strong.

COSBOA knows that individuals are suffering from this behaviour, people’s health is affected and ultimately Australian consumers suffer as retail diversity is removed. Due to the bullying by a very few big businesses the nation’s productivity is declining further as suppliers are inhibited from growth.

Peter Strong added: “This action shows again what COSBOA, its members and many others have said for decades, the behaviour of the duopoly is destroying businesses, people and productivity. The fact that Australia finally has an ACCC that does its job and doesn’t tug the forelock to big business is a godsend to innovation.”

Mr Strong concluded, “COSBOA will hold round table discussions on Section 46 early in the new year. We assure our members and the small business community that we will be firm, and where necessary very aggressive, to get fairness in place. We will match the bullying behaviour of these appalling companies with our own aggression and we will confront their misinformation with facts. Enough is enough.”

www.cosboa.org.au

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ARA: October retail growth sets pace for Christmas

AUSTRALIAN retail sales grew 3.8 percent year on year to $24.6 billion in October 2015 according to the Australian Bureau of Statistics, with the Australian Retailers Association (ARA) hopeful this level of growth and beyond will continue into the seasonal shopping period.

ARA Executive Director, Russell Zimmerman, said that retail sales growth is tracking at a steady pace ahead of the all-important Christmas shopping period, with October’s growth slightly higher than September’s 3.6 year on year growth.

Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. October 2015 sales rose 0.5 percent over September 2015.

“Despite the ARA being disappointed not to have seen a rate cut earlier this week by the Reserve Bank of Australia which would have provided a strong spending incentive in the lead up to Christmas, retailers are well placed to meet our Christmas growth predictions,” Mr Zimmerman said.

The ARA and Roy Morgan Research predicts Australian shoppers will spend $46.8 billion this Christmas in the six weeks from November 15 to December 24 – a record result.

Household goods and department stores were the big winners in October 2015, with growth of 5.9 percent and 4.7 percent respectively.

“The growth of household goods and department stores bodes well for Christmas. We hope this growth can be replicated in the coming weeks as Australians hit the shops to stock up on Christmas gifts.

“The start of warmer weather seen by most states in October was undoubtedly a contributor to some of this growth, while the popularity of television renovation shows continues to boost the household goods sector,” Mr Zimmerman said.

On a state basis, Tasmania showed it is small, but mighty, with an impressive 5.4 percent growth, closely followed by Victoria at 5.2 percent, and NSW, 4.2 percent

 

YEAR ON YEAR RETAIL GROWTH (October 2014 to October 2015 seasonally adjusted)

By category:

Food, three percent; household goods, 5.9 percent; clothing, footwear and personal accessories, 4.6 percent; department stores, 4.7 percent; other retailing, 2.7 percent; cafés, restaurants and takeaway foods, 3.6 percent.

By state:

NSW, 4.2 percent; Victoria, 5.2 percent; Queensland, 2.9 percent; South Australia, 2.8 percent; Western Australia, 2.1 percent; Tasmania, 5.4 percent; Northern Territory, 1.6 percent; and Australian Capital Territory, 2.3 percent.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Exporting to support ADF capability

THE Parliament’s Joint Standing Committee of Foreign Affairs, Defence and Trade today tabled the report for its inquiry into Government support for Australian defence industry exports.

The committee has recommended the Department of Defence recognise that elements of industry are essential to Australian Defence Force (ADF) capability and take steps to identify them, and establish long-term partnerships with industry to sustain them.

Chair of the Defence Sub-Committee, Senator David Fawcett (SA), said, “The recent First Principles Review of Defence has confirmed the Committee’s view that elements of industry essential to the ADF should be recognised as a Fundamental Input to Capability (FIC).  Defence therefore has an interest, indeed an obligation to find appropriate ways to work with industry to ensure that these capabilities can be developed and sustained. Defence exports are just one additional way that the industrial base linked to the ADF’s key capabilities can be sustained.”

The committee recommends specific areas where Defence will need to revise its approach to procurement to allow for long-term partnerships with industry, to drive innovation and maintain Australia’s sovereign capability.

Defence will need to find a new approach to identifying and managing risk to encourage the development of indigenous Intellectual Property (IP).  They need to adapt their policies to recognise that for complex capabilities that are FIC, value for money is more likely to be found through ongoing partnerships with industry, rather than through open competition. “In the past, there has been a sizeable gap between statements of policy and the experience of the defence industry. This must now change,” Senator Fawcett said.

This report’s recommendations aim to make FIC areas of industry more sustainable and more innovative. This innovation will be the basis of increased exports and more clearly define those areas where it is demonstrably in the national interest for the taxpayer to be funding support for defence exports. 

Other recommendations in the report include that the Department of Defence:

• revise the role of defence attachés;
• enhance the role for the Australian Military Sales Office;
• task ADF personnel to attend trade shows and events alongside industry;
• have active ministerial advocacy on behalf of the Australian defence industry; and
• improve processes within the Defence Export Control Office.

A copy of the report and information about the inquiry, including submissions, can be obtained from the committee’s website at www.aph.gov.au/jfadt.

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Telstra talks technology futures

THE impact of new technologies upon society and the economy will be investigated tonight when telecommunications giant Telstra appears before the Infrastructure, Transport and Cities Committee, as part of the ongoing inquiry into the role of smart ICT in the design and planning of infrastructure.

Telstra’s submission focuses on emerging technologies and their potential benefits, such as human interface technologies, immersive communications, the Internet of Things, and artificial intelligence and machine learning.

Telstra notes that one of the most significant opportunities for the application of smart ICT is road infrastructure. The telco says that if Australia continues to build and operate roads as it does today that it’s likely to need about two and a half times more road capacity in 2050 than it has today.

The application of emerging technology—especially autonomous vehicles—means that the road capacity requirement in 2050 could be roughly equivalent to the capacity existing today.

Committee Chair, John Alexander MP (Bennelong, NSW), said that new technology was presenting exciting opportunities to make urban centres more liveable and productive and regional areas better connected than ever before.

“By exploiting the full potential of new technologies, Australia will become a more efficient, productive, connected and liveable place. The opportunities to radically improve the efficiency of transport networks in particular are there to be taken. Governments and business must grasp these opportunities to keep the nation competitive in the global environment,” Mr Alexander said.

Hearing details

Date: Tuesday, 1 December 2015
Time: 5:30 pm–7:00 pm
Witness: Telstra (Submission 14)
Venue: Committee Room 2R1, Parliament House, Canberra

The public hearing will be webcast live at http://www.aph.gov.au/live

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Public hearing into agricultural innovation

THE House of Representatives Agriculture and Industry Committee will conduct a public hearing tomorrow for the inquiry into agricultural innovation.

Appearing at this third hearing for the inquiry will be the CSIRO.

Committee Chair, Rowan Ramsey MP, said “Australia is privileged to have an innovative and enterprising agricultural community populated by farmers, research organisations like CSIRO, and a wealth of other passionate stakeholders. The Committee is keen to hear from CSIRO about the landscape for future agricultural innovation, and in particular to hear what government can to do help in overcoming barriers to technology adoption.”
 
The hearing will be held in Committee Room 1R1, Parliament House, Canberra:
 
Thursday, 26 November 2015
12.30 pm (approx.) CSIRO
1.30 pm close

The public hearing will be webcast live at: http://www.aph.gov.au/News_and_Events/Watch_Parliament

Further details about the inquiry, including submissions received and the terms of reference, can be obtained from the committee’s website at: www.aph.gov.au/agind.

ends