LETTERLETTER FROM FROM CANBERRA CANBERRA Saving youSaving time. you Three time. years Three on. years After on.Letter After from Letter Melbourne, from Melbourne, established established 1994. 1994. A monthly A newslettermonthly newsletter distilling distilling public policy public and policy government and government decisions decisions which affect which business affect businessopportunities opportunities in Australia in Australia and beyond. and beyond.

Post-BudgetPost-Budget and Gambling and Gambling Edition Edition4 May to4 May6 June to 62011 June Issue 2011 34 Issue 34

EditorialEditorial Gambling Gambling all around. all around. oker machinesoker machineshave featured have infeatured politics inin politicsrecent months.in recent Historically, months. Historically, regulating regulatinggambling gamblingand imposing and imposinggambling gamblingtaxes has taxesbeen hasa state been a state P responsibility.P responsibility. Indeed along Indeed with along property, with labour property, and labour motor andvehicles, motor it vehicles, is it is one of the onefew ofsignificant the few significant sources of sourcesrevenue ofavailable revenue to available the states. to theThe states. Courts The Courts have underminedhave undermined the capacity the of capacity the states of theto imposestates totaxes impose since taxes the endsince of the end of World WarWorld 2. War 2.

However, asHowever, a result as of athe result pressure of the applied pressure by appliedan Independent by an Independent Tasmanian Tasmanian MP MP Andrew Wilkie,Andrew the Wilkie, Federal the Government Federal Government has concluded has concludedit has the constitutionalit has the constitutional power to imposepower toitself impose in the itself area in of the regulating area of regulatingpoker machines. poker machines.

Ironically, givenIronically, it is stategiven Liberalit is state governments Liberal governments which have which been have most been vocal most in vocal in their oppositiontheir oppositionto the Federal to the government’s Federal government’s plan to impose plan toself-determined impose self-determined mandatory,mandatory, as distinct as from distinct voluntary, from voluntary,gambling gamblinglimits on limitspoker onmachine poker machine players, theplayers, Howard the government Howard government may well havemay welllaid thehave foundations laid the foundations for Julia for Julia Gillard’s legalGillard’s claim. legal By usingclaim. theBy corporationsusing the corporations power and power the external and the affairs external affairs power to enactpower legislation to enact legislationsuch as Workchoices, such as Workchoices, the Howard the government Howard government drove drove the last nailthe into last the nail coffin into theof states’coffin rights.of states’ rights.

Putting principlePutting to principle one side, to includingone side, theincluding question the ofquestion the extent of theto whichextent ato which a governmentgovernment ought to capitulate ought to capitulateto the demands to the ofdemands one of 150 of one federal of 150 MPs, federal the MPs, the politics of thepolitics issue of are the interesting. issue are interesting.

Clearly whileClearly the publicwhile thedoes public not feel does strongly not feel about strongly many about forms many of gambling, forms of gambling, they do notthey like dopoker not machines.like poker machines.National Party National Senator Party Barnaby Senator Joyce Barnaby reflected Joyce reflected communitycommunity sentiment sentimentwhen he said when that he if said the industrythat if the did industry not do didsomething not do something to to rein in gamblingrein in ongambling poker machines, on poker machines,politicians politicianswould have would to. have to.

State governmentsState governments are not credible are not on credible this issue on becausethis issue there because is a widely there is held a widely held view that itview is Treasury that it is departments Treasury departments which really which dictate really poker dictate machine poker policy machine policy in most states.in most states.

That leavesThat the leaves clubs andthe clubsthe pubs, and thewhich pubs, point which to the point jobs to and the communityjobs and community benefits benefitswhich flow which from flowpoker from machines poker andmachines which andare whichwell organised. are well organised.

It will be interestingIt will be interesting to see whether, to see for whether, voters in for electorates voters in electorates such as Corangamite such as Corangamite in Victoria andin Victoria those inand the those western in the suburbs western of suburbs Sydney, ofthese Sydney, benefits these outweighbenefits outweigh their disapprovaltheir disapproval of this form of of this gambling. form of gambling.

Whatever Whateverthe outcome, the outcome,for Julia Gillardfor Julia the Gillard die is thecast, die courtesy is cast, ofcourtesy Andrew of Andrew Wilkie. Wilkie.

But it’s notBut just it’s poker not justmachines. poker machines.Nor taking Nor on thetaking tobacco on the companies. tobacco companies.

LETTER FROM CANBERRA Saving you time. Three years on. After Letter from Melbourne, established 1994. 4 May to 6 June 2011 LETTER A monthly newsletter distilling public policyFROM and government decisions whichCANBERRA affect business opportunities in Australia and beyond. Saving you time. Three years on. After Letter from Melbourne, established 1994. Post-Budget A monthly and newsletter Gambling distilling Edition public 4 May policy to and 6 Junegovernment 2011 decisions Issue 34 which affect business opportunities in Australia and beyond. Post-Budget and Gambling Edition 4 May to 6 June 2011 Issue 34 LETTEREditorial GamblingLETTER all around.FROM FROM CANBERRA CANBERRA There is plentyThere of is otherplenty gambling of other forgambling a prime for minister a prime who minister is just who about is justhalf- about half- LETTER FROM CANBERRA LETTER FROMSaving you time. Three years SavingCANBERRA on. After you time.Letter Three from yearsMelbourne, on. After established Letter from 1994. Melbourne, established 1994. AEditorial monthlySavingoker younewsletter machinestime. Gambling Three distilling have yearsA featuredmonthly public allon. around.Afterin newsletterpolicy politics Letter and in recentfromdistillinggovernment Melbourne,months. public decisions Historically, policy established whichand government affect1994. business decisions opportunities which affect in Australia business and opportunities beyond. in Australia and beyond. Letter from Canberra is a monthly newsletter distilling public policy and governmentLETTER decisions FROM that CANBERRA effect A monthly newsletter distilling publicregulating policy gambling and government and imposing decisions gambling which taxes affecthas been business a state opportunities in Australia and beyond. oker machines have featured in politics in recent months. Historically, business opportunities in Australia and beyond. You only need to be on a trip to miss out on the context of Post-Budget andP Gamblingresponsibility. Edition Indeed along 4 Maywith property, to 6 June labour 2011and motor Issue vehicles, 34 it is regulatingPost-Budget gambling and imposingand Gambling gambling taxesEdition has been4 May a state to 6 June 2011 Issue 34 Post-Budget and Gambling Editionone of4 theMay few tosignificant 6 June sources 2011 of Issuerevenue 34available to the states. The Courts important stories. In a world of wall-to-wall information overload, we have been summarizing the media and Phaveresponsibility. undermined Indeed the capacity along with of theproperty, states labour to impose and motortaxes vehicles,since the it end is of coffee-shop gossip for 18 years now, along with Letter from Melbourne. Editorialone Gambling Worldof the WarfewEditorial significant2. all around. sources Gambling of revenue available all around. to the states. The Courts Gambling all around.have undermined the capacity of the states to impose taxes since the end of !"#$%$#"&'()$*($+,-./01#,2)$'")(/1"3$'/(,- !"#4)/1 Editorial oker machines have featured in politics in recent months. Historically, ! WorldHowever, War 2. as a resultoker machinesof the pressure have appliedfeatured by in an politics Independent in recent Tasmanian months. MP Historically, Letter)56789:6;$6;<=9;$>?$/8@=6;9$%A?A$BCD$E=$:C@=$@F;$D9BG$@=$G:C$%$C:EF@7H$:C8I5D:CE$69;BJR$UVQW$?>AAH$=9$;SB:I$X5I:;@@;YB<Coalition Treasury spokesman and Liberal MP Joe a purported education revolution herself, Gillard lauded Queen’s Counsel before becoming a judge 16 years ago, politics of the issue are interesting. delivery agencies. players, the Howard governmentGillard’s maylegal well claim. governmenthave By laidusing the oughtthe Gillard’sfoundations corporations to capitulatelegal for claim. powerJulia to Bythe and usingdemands the the external corporationsof one affairs of 150 power federal and MPs, the the external affairs Hockey said he strongly opposed the idea of a registry. McKillop as an education pioneer who believed in the has been promoted to the Court of Appeal. power to enact legislation such as Workchoices, the Howard government drove Gillard’s legal claim. By using the corporationspolitics Clearlypower of the andwhile powerissue the the externalareto public enact interesting. does affairslegislation not feel such strongly as Workchoices, about many the forms Howard of gambling, government drove transformative power of a good education. the last nail into the coffin of states’ rights. Handicapped Good Job power to enact legislation such as Workchoices,they the Howarddo notthe like governmentlast poker nail machines.into drovethe coffin National of states’ Party Senatorrights. Barnaby Joyce reflected The Press The Party Press PartyIn The Age, Michelle Grattan wrote that Andrew Peacock, Hope they make it… The National Breast Cancer Foundation seeks a chief the last nail into the coffin of states’ rights. Next Month:Next Month: Clearlycommunity while the sentiment public does when not he feel said strongly that if theabout industry many didforms not ofdo gambling, something to back in his old electorate of Kooyong, committed a howler The Herald Sun reported that courts cleared the way executive officer [email protected]. Putting principle tothey one do side, not like includingPutting poker machines.principle the question to National one of side,the Party extent including Senator to which the Barnaby question a Joyce of reflectedthe extent to which a when he said that ‘you’d have to be pretty handicapped for 14-year-old Dutch girl Laura Dekker to set sail on rein in gambling on poker machines, politicians would have to. Tenders Putting principle to one side,government including ought the questionto capitulate of thegovernment to theextent demands to oughtwhich of to onea capitulate of 150 federal to the demandsMPs, the of one of 150 federal MPs, the not to appreciate that this government is dissolving before her quest to solo circumnavigate the world and become community sentiment when he said that if the industry did not do something to The Government wants to know how Australia should government ought to capitulatepolitics to of the the demands issue are of interesting. one of politics150 federal of the MPs, issue the are interesting. your eyes daily’. This would have been unfortunate even if the youngest person to do it. The Age reported that Kiwi rein Statein gambling governments on poker are machines, not credible politicians on this issue would because have to. there is a widely held commemorate the Anzac Centenary. All Australians politics of the issue are interesting. the Labor candidate for Kooyong had not been blind. adventurer Jeremy Burfoot will try to travel the 32,000 view that it is Treasury departments which really dictate poker machine policy are asked to put their ideas and suggestions forward Clearly while the public does not feel strongly about many forms of gambling, kilometres from London to New Zealand by jet ski. The State governmentsClearly are while not thecredible public on does this issuenot feel because strongly there about is a many widely forms held of gambling, to a National Commission about how the Australian in most states. 51-year-old pilot will spend up to 12 hours a day astride a Clearly while the public doesthey not do notfeel like strongly pokerview aboutmachines. that manyit isthey TreasuryNational forms do not ofParty departments likegambling, pokerSenator machines. Barnabywhich really NationalJoyce dictate reflected Party poker Senator machine Barnaby policy Joyce reflected community can be engaged to mark the Anzac Centenary, community sentiment when he said that if the industry did not do something to SOCIETY jet-ski on his journey to the southern hemisphere. they do not like poker machines. National Partyin mostSenatorThat states. leaves Barnabycommunity the Joyce clubs sentiment reflectedand the pubs,when hewhich said point that ifto the the industry jobs and did community not do something to www.anzaccentenary.gov.au. community sentiment whenrein he in said gambling that if onthe poker industry machines, didrein not in dopoliticians gambling something wouldon topoker have machines, to. politicians would have to. God help her = benefits which flow from poker machines and which are well organised. rein in gambling on poker machines, politicians would have to. Australia’s first atheist celebrated the achievement of APPOINTMENTS, JOBS AND The Department of Health and Ageing invites That leaves the clubs and the pubs, which point to the jobs and community State governments are not credibleState on governments this issue because are not there credible is a onwidely this issueheld because there is a widely held Australia’s first saint when Julia Gillard told an audience applications for the fifth round of funding under the benefitsIt will bewhich interesting flow from to see poker whether, machines for voters and in which electorates are well such organised. as Corangamite view that it is Treasury departments which really dictate poker machine policy at Sydney Town Hall that Mary McKillop embodied TENDERS National Rural and Remote Health Infrastructure Program, State governments are not credible on this issuein because Victoria view thereand thosethat is a itwidely inis theTreasury heldwestern departments suburbs of Sydney,which really these dictate benefits poker outweigh machine policy in most states. the spirit of Australian egalitarianism, The Australian www.health.gov.au/tenders. view that it is Treasury departments which reallyIt willtheir bedictate interesting disapproval inpoker most tomachine ofstates.see this whether, form policy of for gambling. voters in electorates such as Corangamite reported. The Prime Minister was speaking at a dinner Appointments in most states. in Victoria and those in the western suburbs of Sydney, these benefits outweigh to raise funds for the celebration McKillop’s canonisation The Productivity Commission invites public participation That leaves the clubs and the pubs, which point to the jobs and community Greg Moriarty has been appointed as Australia’s next theirWhatever disapprovalThat the of outcome,leaves this form the for ofclubs gambling. Julia and Gillard the pubs,the die which is cast, point courtesy to the jobsof Andrew and community on October 17. The audience of Catholic eminences were in an inquiry into the case for microeconomic reform in benefits which flow from poker machines and which are well organised. achieved. achieved. ambassador to Indonesia, replacing career public servant That leaves the clubs and the pubs, which pointWilkie. to the benefitsjobs and communitywhich flow from poker machines and which are well organised. pleased when Gillard pledged $1.5m of Commonwealth Australia’s urban water sector, www.pc.gov.au. Bill Farmer, who has served in the role since 2005. benefits which flow from poker machines Whateverand which the are outcome, well organised. for Julia Gillard the die is cast, courtesy of Andrew money towards the celebrations and extended tax It will be interesting to see whether, for voters in electorates such as Corangamite Wilkie.But it’s notIt willjust be poker interesting machines. to see Nor whether, taking onfor thevoters tobacco in electorates companies. such as Corangamite It will be interesting to see whether,in Victoria for and voters those in electoratesin the westernin such Victoria suburbs as Corangamite and of thoseSydney, in thethese western benefits suburbs outweigh of Sydney, these benefits outweigh their disapproval of this form of gambling. in Victoria and those in the western suburbs Butof Sydney, Thereit’s not is thesejust plentytheir poker benefits disapproval of machines.other outweigh gambling of Northis takingform for aof onprime gambling. the tobaccominister companies.who is just about half- !"#!$%&#' their disapproval of this form of gambling. way through a year in which she said she would have many of her objectives Whatever the outcome, for Julia Gillard the die is cast, courtesy of Andrew Next Month: The Press Party DE,F.)2'G$ Thereachieved. is plentyWhatever of other thegambling outcome, for afor prime Julia ministerGillard thewho die is justis cast, about courtesy half- of Andrew 8&-0'))) ))9,4')) ) ) ) ) ))))) Whatever the outcome, forWilkie. Julia Gillard theway die through is cast, Wilkie.a courtesy year in which of Andrew she said she would have many of her objectives :%1,3&!,-&.3)))))))))))) Next Month: The Press Party Wilkie. achieved. (Continued page 2...) (//%'!!))))))))))))) But it’s not just poker machines.But Nor it’s taking not just on pokerthe tobacco machines. companies. Nor taking on the tobacco companies. ))))));.!-$./')) ) ))))) But it’s not just poker machines. Nor taking on the tobacco companies. (Continued page 2...) ;+.3'<=,>)))))) There is plenty of other gamblingThere for isa primeplenty ministerof other whogambling is just for about a prime half- minister who is just about half- ?4,&0)))))) There is plenty of other gamblingway through for a a prime year INSIDE inminister which shewhoway saidis through just she about would a year half- have in which many she of hersaid objectives she would have many of her objectives Next Month: The PressNext Party Month: The Press Party H2E0.+),F.)2'G$ way through a year in whichachieved. she said she would have manyachieved. of her objectives Next Month: The Press Party D+'E"')F,--,$+'/G)*.%)H) )&!)'3$0.!'/)5,7,#0')-.)(**,&%!).*)A-,-'6).%))) INSIDE The Budget Gaming achieved. Constitutional crisis, not quite Cigarette use challenge $+,%1')H))))))))))))))))))))-.))!)I&!,))!)C,!-'%$,%/))!)(4'> (Continued page 2...) (Continued page 2...) D,%/)9"4#'% TheClimate Budget change. Gaunaut frustration GamingSexual innuendo in parliamentary debates (ContinuedConstitutionalincreases page 2...) crisis, not quite CigaretteEconomy use thinner challenge !"#$%&'()'*+$,)*,-.)).&,/&*0,12+#.&&2,3*&,456,7689,:;<,=$$".$>,3*&,?@ABC D,%/)J.0/'%)))))))))))) ClimateBroadband change. launches. Gaunaut Contracts frustration SexualAfghanistan innuendo in parliamentary debates O*,2GG,+.P,$"#$%&'#.&$,#.3*&.,J<,!.().0#.&Q,@<;< A&13,-"%')))))))?>5&%7)))))))))))))))<)))))))))))))) INSIDE plus... PagesINSIDEincreases 9Nauru - 12 Latest challenges Roy Morgan Malaysian findings plan on the Carbon Tax EconomyKatter’s thinner new party All new subscribers will additionally receive one of: INSIDE BroadbandCattle to launches.Indonesia. Contracts Suspended AfghanistanPress: Criticism ()*%'')#%&'*&31)@&-+)7."%)!-,**).3)&!!"'!)-+'%'&36),-)7."%).**&$').%)2&,)AB75' ;0',!')*,>)-+&!).%/'%)*.%4)-.)PO)QRSM)LLRS)*.%)$%'/&-)$,%/)5"%5.!'! 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INSIDEINSIDE The BudgetThe Budget GamingGaming ConstitutionalConstitutional crisis, crisis,not quite not quite CigaretteCigarette use challenge use challenge ClimateClimate change. change. Gaunaut Gaunaut frustration frustration Sexual Sexualinnuendo innuendo in parliamentary in parliamentary debates debates increasesincreases EconomyEconomy thinner thinner BroadbandBroadband launches. launches. Contracts Contracts AfghanistanAfghanistan Nauru challengesNauru challenges Malaysian Malaysian plan plan Katter’sKatter’s new party new party Cattle toCattle Indonesia. to Indonesia. Suspended Suspended Press: CriticismPress: Criticism 4 May to 6 June 2011

14 Collins Street Melbourne, 3000 EDITORIAL (Continued) Victoria, Australia Gambling all around. P 03 9654 1300 F 03 9654 1165 Her big issue is climate change tax/cap and trade. The final Garnaut Report has upped the ante on this huge [email protected] issue. Her rating as preferred prime minister is sitting at about 29 per cent, which is due in part to her newly- www.letterfromcanberra.com.au found passion for a carbon tax which was not in evidence before the latest federal election.

On the other side of the coin, the carbon tax has provided a platform on which Abbott is campaigning. Gillard’s Editor Alistair Urquhart gamble is that, once the detail is known, the ‘social conscience’ of the inner-suburbanites who can afford to pay Associate Editor Gabriel Phipps increased utility and transport charges will wash over the masses in the outer suburbs and leave Abbott stranded Subscription Manager Juliette Biegler as an outdated, single-issue politician not up to the challenges of the 21st century. Advertising Manager Tony McAdam Editorial Consultant Rick Brown Design Camilla Orr-Thomson Time will tell about this strategy. Meanwhile, there are plenty of sceptics in Labor’s ranks about its prospects. Gillard’s gamble with credibility is not limited to her back-flip on a carbon tax and her being an advocate for dumping Kevin Rudd’s emission trading scheme. There is also the matter of asylum seekers. Letter From Canberra is focused on the interface of business and government, with enough politics The argument that the dramatic increase in asylum seekers in recent years is due to international factors has and bureaucracy to understand the, if any, relevant long since found its way to the dustbin. It has been joined by the East Timor solution. Now we have the Malaysian business opportunities. solution, which has John Howard’s opponents calling for the restoration of the ‘Nauru Solution’.

We have been publishing Letter from Canberra’s The largely unnoticed issue recently has been the federal budget (despite the fact that Treasurer Wayne Swan sister publication Letter from Melbourne, a public is telling anybody who cares to listen that the inflow from mining investments in the next three years presents policy digest, for 17 years. Commencing with serious economic management challenges). the Kennett era corporatisation and privatisation of energy and other utilities and the other fresh The Budget theme was that of lifting people out of welfare to work with some lessening of middle-class welfare. broom approach of a new government, where we Within several days, any sell of it was sharing space with Gillard’s other half saying that he wanted to marry her, focused on business opportunities. Increasingly, we included matters in the other states and and giving royal waves from Qantas 1 as they were flying out of Australia or landing in China. And the population adopted a more federal focus. minister brought out a new population report which did not close off too many avenues. A steady as she goes budget. The 2007 change in federal government opened up new business opportunities, particularly the A BIG sleeper. Industrial relations is on the near horizon. What government’s new emphasis on climate change, with Qantas and its staff, Patricks and the Maritime union at the carbon trading, water, industrial relations, ports, the mining industry. And small business employers, not just education, information technology and the retailers. traditional sectors. And Fair Work Australia has now released a court challengeable For many years, our other publications have included the well-known federal government decision that unions can commence industrial action before Departmental Wall Chart (NOW AVAILABLE at 03 commencing to negotiate. 9654 1300 or www.affairs.com.au). We conduct seminars and informal luncheons and meetings in Oh. Haven’t mentioned the issue of constitutional crises warming Melbourne, Canberra and Sydney. up. Plenty of coverage was made about Independents being very independent in the House of Representatives during parliamentary Most people have their clipping services and a votes recently. range of email products/newsletters/etc. At the end of the month, Letter from Canberra gives a A longer editorial than usual. Interesting times indeed. broad overview of what has been going on, not just in one industry but across all industries and the world of business and government generally. Objective. Independent. Read it on the plane. Or INDEX at a coffee shop in New York. And then give it to a IN APPROXIMATE ORDER OF INTEREST OVER THE PAST MONTH friend who is interested in Australia. CARBON TAX 3 INDUSTRIAL RELATIONS. EMPLOYMENT 14 CLIMATE CHANGE. ENVIRONMENT. ENERGY 4 BROADBAND. IT 14 To subscribe, please visit AGRICULTURE & WATER 5 INFRASTRUCTURE 16 www.affairs.com.au IMMIGRATION. REFUGEES 5 HEALTH 17 JUSTICE 6 EDUCATION 17 Published by A.B Urquhart & Company Pty Ltd trading as SPORT. GAMING 6 DEFENCE 18 Affairs of State. Disclaimer: Material in this publication is FOREIGN AFFAIRS general comment and not intended as advice on any particular GOVERNANCE 6 19 matter. Professional advice should be sought before action is BUDGET 8 SOCIETY 19 taken. Material is complied from various sources including newspaper articles, press releases, government publications, BUSINESS. ECONOMY. TAX 13 Hansard, trade journals, etc. © This newsletter is copyright. No part may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or WANTED. SENSiblE uNivErSiTy STuDENT, mAybE WiTh otherwise), without the prior written permission from the A bAckgrouND iN poliTicS or lAW, iNTErESTED iN A publisher. Affairs of State respects your privacy. While we do believe that the information contained in Letter from pArT-TimE iNTErNShip. plEASE coNTAcT. Melbourne will be useful to you, please advise us if you do not wish to receive any further communications from us. 03 9654 1300 or [email protected]

2 LETTER FROM CANBERRA

CARBON TAX countries that export energy-intensive products incur others have indicated that a starting price of $40 is emissions on behalf of other countries’. Moran argued required. ETS the way to go that this tended to ‘reduce the national emission levels Explosives giant Orica recommended that the federal of many developed countries, while exaggerating Sell, sell, sell government scrap its carbon tax in favour of an those of some developing countries and resource rich The Age said Julia Gillard had ordered a national blitz emissions trading scheme, The Australian reported. countries like Australia’. by senior ministers to sell the government’s climate An exclusive article in the next day’s Australian, on 16 change plans. The move came amid mounting May, revealed that Westpac CEO Gail Kelly shared Creative cartoon opposition from business to the carbon tax, and this view, and that uncertainty over the lack of policy A clever cartoon published in The Australian depicted ahead of weeks of tense negotiations with the Greens detail was hurting her customers. a red faced Bob Brown goading Julia Gillard and independents on its final shape. 15 top energy about a lack of ‘backbone’ on the carbon tax issue. companies called for the urgent introduction of a Driving up car prices Gillard retorts: ‘Trouble is, Bob, our back bone hates carbon price, and the AiGroup joined the Business The car industry has claimed to The Financial Review the carbon tax,’ while gesturing to an angry mob Council of Australia in calling for a $10-a-tonne price that a carbon tax would add as much as $412 to the caricatured as Labor’s base. on carbon. The Australian Chamber of Commerce and cost of making a typical Australian car and threaten Industry has expressed outright opposition to the tax. the viability of local manufacturers and component Victoria kicking and screaming suppliers. Also, the Federal Chamber of Automotive The Victorian government broadened an attack on Get-Up campaign Industries argued that the extra costs could not be the federal government’s carbon tax by threatening Pro-carbon tax activists launched a national passed on to buyers, and that components would to fight ‘kicking and screaming’ against any proposal advertising campaign orgainsed by Get-Up and increasingly come from countries that did not have a that undermines the state’s competitive edge from headed by actress Cate Blanchett, to promote action carbon tax. cheap coal-fired electricity. The Financial Review on climate change. Blanchett drew some criticism in revealed that the Victorian government had sought the media for appearing in the advertisements. In a Stoking the coals federal compensation to cover a potential liability further complication, a letter containing the signatures Addressing an Australian Agenda event hosted by from its contracts with American aluminium company of 140 ‘Australian leaders’ and community groups was The Australian and UBS, Seven Group Holdings chief Alcoa, if a carbon price is introduced. delivered to Parliament House in Canberra yesterday. executive Kerry Stokes was quoted by the paper on The group is calling on the federal government to put the issue of a carbon tax. ‘I’ve always thought we’d Energy insecurity a price on carbon. But it emerged in The Australian be better off with incentives rather than tax. I don’t A report published in The Australian warned that the that three of the signatories – Manfield’s Boost Juice believe in tax as a cure for all environmental issues,’ security of electricity supplies would be at risk, and founder Janine Allis and Melbourne priest Bob he said. Stokes also said that a carbon tax was ‘a power prices would be likely to rise under a carbon Maguire - were not aware their names were being great way for redistributing wealth for the country’, but price, if assistance measures failed to prevent the used as part of the advertising campaign, and do not warned, ‘It’s not going to change power generation’, financial collapse of coal-fired generators. The even agree with Canberra’s proposed carbon tax. claiming that coal ‘will be in use in this country for at Morgan Stanley review, which was conducted in least the next 25 years’. 2009 as the government developed its compensation Upfront compensation package for Kevin Rudd’s carbon pollution reduction The Australian reported that the Gillard government Dizzy with spin scheme, had never before been released because was considering a recommendation that pensioners The Australian published a piece by the Director of electricity generators threw open their books to the should have their carbon tax compensation paid Deregulation at the Institute of Public Affairs, Alan investment bank for the analysis. A summary of the upfront and the tax-free threshold for low-income Moran, calling foul on Climate Change Minister report, prepared by the Department of Climate Change earners should rise almost $9000 to $25,000. Greg Combet. He claimed the minister’s ‘spin for a and obtained by The Australian, was circulated to Professor Ross Garnaut on handing in his final report carbon tax pushed new frontiers in the art of being generators. called for compensation to be provided only to those economical with the truth’. Combet was quoted as on incomes up to $80,000. saying that ‘Australia release[ed] more pollution per Middle ground yet to be found person than any other country in the developed world, The Australian reported that the Business Council of Australian aviation in biofuel plea more than the US’. However, Moran pointed out that in Australia had called for a $10-a-tonne starting price A world first report showed a sustainable aviation fuels a chapter of a recently published anthology, Energy, for the carbon tax, and demanded all trade-exposed industry is viable in Australasia. The Australian said the Sustainability and the Environment, edited by F.P. industries be fully exempt in the absence of similar report prompted airline calls for federal government Sioshansi, he observed: ‘International trade means action from global competitors. The Greens and support for the fledgling biofuel technology to be

3 4 May to 6 June 2011 included in its carbon tax package. The CSIRO report Uranium mining was undermined when former minister Nick Minchin found there were a variety of sustainable existing The Australian reported that Resources Minister launched a strong attack on the commission, and resources such as sugar-cane mulch, as well as non- Martin Ferguson labelled the West Australian Labor commission members made it clear that soil carbon food feedstocks such as algae and pongamia (an Party’s opposition to uranium mining as ‘ridiculous’ and tree planting - key parts of Coalition policy - would inedible oil-yielding tree), to support a biofuel industry. and unsustainable. He called on the new NSW and not be enough to deal with the challenge. Senator The report looked at sustainable fuels making up 5 Victoria governments to reassess their bans on the Minchin said the report was entirely predictable per cent of airline fuel use by 2020 and 40 per cent industry. because it came from ‘a select group of known by 2050. alarmists who seek to exaggerate the dangers of Energy Centre global warming’. WWF wades in An advertisement in The Financial Review from A newspaper advertisement was published in The International Energy Centre called for a CEO at the Coalmines get green light Australian on behalf of the World Wildlife Fund. The ad Brisbane based start up / university joint venture. Resources Minister Martin Ferguson rejected a took the form of an ‘economists open letter supporting demand by the Greens for a ban on new coalmines, a price on carbon pollution 2011’. Individuals who put Black gold declaring that the coal industry has a bright future as a their name to the document included: Saul Eslake, An advertisement in The Financial Review from driver of economic prosperity, despite moves to tackle Director of the Productivity Growth Program, Grattan Australian Petroleum & Exploration Association climate change. Institute, and former Chief Economist of ANZ from Limited called for a Chief Executive position. 1995 to 2009; Bill Evans, Chief Economist, Westpac; APPEA represents Australia’s upstream oil and gas Here comes the sun and Joshua Gans, Professor of Management, exploration and producation industry and is one of the New South Wales Energy Minister Chris Hartcher Melbourne Business School. nation’s highest profile peak industry bodies. said he would push for an overhaul of feed-in tariff schemes at COAG. The Financial Review reported Hawkish move What price freedom? that The New South Wales government and the solar The Australian reported that Julia Gillard had ‘rolled Climate Change Minister Greg Combet distanced and electricity industries agreed there should be a out’ Bob Hawke in an attempt to win support for the Labor from demands by the Greens for a $40 a single national system of tariffs, paid to households carbon tax. tonne carbon price, wrote The Financial Review. The for the solar energy they generate. But the federal opposition seized on reports that a carbon price would government is unlikely to back a national system of need to reach $40 to drive a shift from coal-fired subsidies for solar-generating households, which it CLIMATE CHANGE. ENVIRONMENT. power to new baseload gas plants. Combet quickly says is inefficient and raises the cost of electricity for ENERGY declared that the starting price would be ‘well south’ all consumers. of that figure. Garnaut’s final say A letter from the prime minister Power plays As part of his final report into climate change, On 30 May, The Herald Sun published a letter from A new report warned that the government-owned Professor Ross Garnaut recommended the Julia Gillard advising readers on the issue of climate electricity networks in NSW and Queensland charge establishment of an independent body to prevent change. ‘Last Monday, I received a report from the almost twice as much as privately owned operators policy being derailed by vested interests. The body Climate Commission confirming again that climate in Victoria, resulting in soaring bills for consumers. would set future emissions targets and trading change is real. It also provided very real evidence that The report, obtained by The Australian, argued caps under a carbon scheme from 2014. Other we need to act now. Not in a couple of generations’ that the government-owned poles and wires that recommendations in the report include a $26 starting time, or even a couple of years’ time, but now. What deliver power are delivering windfall profits to state price on carbon and a 10-year plan for the carve-up of the report shows is that in the last 50 years the governments, at the expense of electricity consumers. carbon price revenue. The government revealed that number of record hot days in Australia has more The government-owned networks also have more it was planning to return 46 per cent of carbon tax than doubled. Australian natural wonders such as frequent and longer outages than the private networks revenue to business, and that most of the remainder the Great Barrier Reef are already being damaged, that operate in Victoria and South Australia. would go to households. and the risk of coastal flooding could double by the end of the century. Most significantly, the report says Maybe too late for reef Non-nuclear Germany the greatest contributor to recent climate change is The Australian reported that Julia Gillard’s key The Age reported Germany’s announcement of plans carbon pollution caused by humans. Another report climate-change adviser, Will Steffen, warned to become the first major industrialised power to shut by Geoscience Australia shows that if sea levels rise that nothing short of securing an effective global down all its nuclear plants, with the last to be closed by 1.1m because of climate change and we have an agreement to tackle climate change can save the by 2022. German Environment Minister Norbert extreme weather event, this would have significant reef, while one of the world’s leading reef scientists, Roettgen announced the government’s ‘irreversible’ impacts on Victoria’s commercial, industrial and Ove Hoegh-Guldberg, has said Australia will be left decision, which was prompted by the Japanese transport infrastructure. The report says 10 Local with ‘the great weedy reef’ unless the world cuts nuclear disaster. Germany has 17 nuclear reactors, Government Areas would be impacted, including emissions. The warnings followed the release of a eight of which are currently off the electricity grid. Melbourne, Wellington, Greater Geelong, Surf Coast Climate Commission report that found that unless and Frankston. global emissions began falling within a few years, the Coal job available world would face a near-impossible task to limit global The Australian Coal Association advertised for the Electricity spike warming to two degrees Celsius by 2050 - the target position of chief executive officer, located in an The states’ failure to maintain their ageing electricity that scientists say, will limit damage to the reef and eastern capital city. networks has led to a huge spike in power prices, avert dangerous climate change. the Australian Energy Regulator said. The Financial Clean-coal financing in doubt Review reported that delays in replacing old assets Coalition climate uncooperative The Financial Review reported that the future of such as poles and wires – some of which are over 60 Opposition leader Tony Abbott tried to neutralise the a controversial clean-coal power development in years old – means that building costs have increased, political impact of the Climate Commission’s call for Victoria’s east hangs on talks over hundreds of millions this cost having translated to higher energy prices. an urgent, robust approach to tackling emissions by of dollars in loans and access to crucial patents. HRL claiming its report vindicates the Coalition’s direct subsidiary Dual Gas recently won environmental action policy. But The Age wrote that Abbott’s tactic approval for a 300-megawatt plant at Loy Yang, in the to limit the government’s exploitation of the report Latrobe Valley, which uses gasification technology to

4 LETTER FROM CANBERRA burn brown coal with lower emissions than traditional plants. The approval was for only half of HRL’s Cattle cruelty IMMIGRATION. REFUGEES 600 mW proposal, casting doubts over its financial Outrage broke out over the barbarous treatment of viability, despite the company benefiting from $150 animals in Indonesian slaughterhouses after a report million in pledged federal and state government on the ABC’s Four Corners program highlighting Biting the hand that feeds support. The Financial Review disclosed in May that mistreatment of exported cattle. The revelations A report by The Australian’s legal affairs department the company had approached the state government sparked diplomatic tension with Jakarta and forced revealed that the Refugee and Immigration Legal late last year, saying it needed almost $600 million. the Gillard government to suspend live animal exports Centre, which has been instrumental in clearing the The company had not yet commited to building to at least 11 abattoirs. Although The Australian way for litigation by asylum-seekers, is heavily reliant the smaller-scale plant for which it has gained a reports that Agriculture Minister Joe Ludwig has left on federal government funding. The article showed permit. It has now emerged that there are financial open the door to a total ban on imports to Indonesian that 68 per cent of the centre’s $1.9 million funding and commercial deadlines looming at the end of abattoirs, the cattle industry has warned that an came from the Department of Immigration, despite June, stemming from agreements struck during the overreaction could shut down the $330 million trade the fact that the centre’s work is likely to cost the privatisation of Victoria’s energy industry in the 1990s. and threaten thousands of jobs. The controversy department millions of dollars spent defending legal In 1995 the State Electricity Commission of Victoria has also caused rare consensus in Canberra, with claims from refugees. A further 15 per cent of the signed several agreements related to privatisation. As Nationals leader Warren Truss urging colleagues centre’s money comes from the Victorian government. part of that process the commission licensed to HRL to back Labor’s response, noting that seasoned technology related to the coal drying and gasification cattlemen would have ‘tears in their eyes’ after System contradictions process. That licence expires at the end of this month. seeing the ABC investigation’s footage. Sholahudin The Age reported that most Afghan boat arrivals who A spokeswoman for Treasurer Kim Wells confirmed al-Ayubi, secretary of the Indonesian Ulema Council, appealed against the rejection of their refugee status that the state, through the surviving corporate shell the national clerical organisation, said the practices had the decision overturned, revealing ‘extraordinary’ of the SECV, was in negotiations with HRL over the that had been exposed - the gouging of cattle’s eyes, disagreement between government and independent future of the licence but declined to elaborate, citing slashing with blunt knives and the breaking of limbs reviewers, refugee groups say. Refugee Council chief commercial confidentiality. HRL is an unlisted public - were unacceptable under sharia. ‘Slaughtering has executive Paul Power said the data exposed the company. to be done in the Islamic way to make the meat halal political pressure to reject asylum seekers amid last (lawful),’ Mr Sholahudin said. ‘The point of Islamic year’s election toughening of border protection policy. slaughtering is ihsan (best behaviour): for example, But independent merit reviewers later overturned AGRICULTURE. WATER sharpening the knife so the animal does not feel pain 86 per cent of the 303 Afghan cases which were and dies right away’. Exports suspended. appealed in this period, and Power said this showed ‘fundamental disagreement’. Cotton and coal Maybe Murray movement A Darling Downs cotton and grain property has Key independent Tony Windsor has provided Julia Problem, not a solution become the flashpoint in a legal battle that, The Gillard with a political circuit-breaker in the fight to The Australian said that the Gillard government was Australian claims, will test the rights of farmers fix the Murray-Darling Basin and deliver a reform at odds with the Malaysian government over the level and the environment against the booming resource package that will survive a hung parliament. Windsor of protection to be offered to the 800 asylum seekers industry sweeping eastern Australia. The National handed down the final report of his committee of transferred under a controversial refugee swap, with Farmers’ Federation opened its Australian Farmers inquiry into the social and economic effects of water Kuala Lumpur insisting that the 800 be treated the Fighting Fund to provide strategic advice and help buybacks in the Murray-Darling Basin, which was same as other refugees already in the country. underwrite the cost of the legal action, which could set up in the wake of widespread community anger run to half a million dollars. Like the Liverpool Plains over the release of the guide basin plan last October. Offers abound? in New South Wales, Ruth Armstrong’s property is The guide - which had recommended that between South Pacific nations, including the politically fragile situated on rich black soils, regarded as some of the 3,000 and 4,000 gigalitres of water be bought back Solomon Islands, are appealing to the Australian most fertile and productive in the world. The challenge from farmers across the basin - was condemned government to make them part of a new Pacific by 13 farm families, against a Queensland government by both sides of parliament. Windsor’s committee solution for processing asylum seekers. Senior decision to grant the environmental go-ahead to coal- report yesterday identified just over 2,000 gigalitres government sources have told The Australian that seam gas exploration in the Darling Downs, could set of water-saving infrastructure projects that could several Pacific nations were very keen to host a precedent that will better define the co-existence dramatically reduce the level of water buybacks to be refugee-processing centres along the lines of the of farmers and mining companies. It will test whether recommended by the Murray-Darling Basin Authority Howard government’s deals with Nauru and Papua state governments should give special consideration when it releases its next draft reform document later New Guinea. to preserving the nation’s most productive agricultural this year. lands, and whether an undertaking to ‘make good’ any Student visas overdrawn damage caused by mining is sufficient environmental Windsor plans poorly The Australian said that the Gillard government protection when dealing with underground water Environment editor at The Australian, Graham Lloyd, was struggling to manage the international student supplies that feed cities and farmlands. argued that Tony Windsor’s Murray-Darling Basin plan visa program, failing to keep track of hundreds of could open the floodgates on a slush fund worth more thousands of potential visa breaches. The Australian Positions available than $5 billion to finance community pet projects. National Audit Office reportedly found the Department An advertisement in The Financial Review from Meat He quipped that ‘for this reason alone, there is little of Immigration’s key administrative structures and & Livestock Australia was seeking three independent wonder the plan has secured the unanimous and processes ‘were not sufficiently robust’ to ensure the directors to its board. MLA provides marketing and bipartisan support of the House of Representatives ‘integrity’ of the program, while student numbers have research to the Australian red meat industry. And an standing committee that created it’. He wrote that soared. advertisement in The Australian from the Australian there was little evidence that the plan would deliver Government’s Grape and Wine Research and a better overall outcome for the Murray Darling-Basin Child refugees to Malaysia Development Corporation requested applications for system in terms of either environmental protection or The Australian confirmed that the Gillard government non-executive directors of its board. community wellbeing. intends to transfer unaccompanied child asylum- seekers to Malaysia as a deterrent to stop their parents sending them to Australia by boat. Immigration Minister Chris Bowen confirmed to the paper there

5 4 May to 6 June 2011

than having no ties at all and had given the AFL access to information about suspicious betting patterns. Gambling changes entrenched The Age said that the Prime Minister had sent a strong message to James Packer and his new lobbyist Karl Bitar that Labor is not for turning on its gambling reforms. But the Gillard government rejected a call for a tough new law to stop former ministers, staffers and political operatives from lobbying for a set period. Bitar, the recently departed ALP national secretary, has been hired by Crown Limited, and will be trying to get modified or defeated the proposed move to force gamblers to put prior limits on their losses. Pokies on a winning streak would be no special treatment for unaccompanied of their intellectual property - brands and trademarks The Age reported that Federal Cabinet gave the green minors in Australia’s asylum-seeker deal with Kuala - in violation of the Constitution and international light to exempt small clubs with 15 or fewer poker Lumpur. However, the minister later softened his trade treaties, and if they succeed, taxpayers could machines from proposed national gambling reforms stance, saying that decisions would be made on a be left with a compensation bill in the billions. The - including pre-commitment cards - for an extra case-by-case basis. government says it has robust legal advice backing four years. Also, The Australian said that the South its plans, but refuses to release it ‘in line with long- Australian and Queensland Labor governments would Solution support crumbles standing protocols’. But documents obtained through back NSW, Victoria and Western Australia in refusing Marion Le, a refugee lawyer and outspoken critic Freedom of Information requests showed government Julia Gillard’s demand to introduce mandatory poker of the Pacific Solution, had reportedly urged Labor bureaucrats - and even one cabinet minister - have machine limits. to reopen the Nauru processing centre - the same concerns about plain packaging. Health Minister facility she demanded be shut in 2005 because of Nicola Roxon herself admitted this week that there Don’t bet on it concern about the treatment of asylum-seekers. is no proof the move will cut smoking rates because The Australian reported that Labor would ban the The Australian said she was backed by human rights no government has done it before, yet proof is the key. promotion of live betting odds during sporting lawyer Julian Burnside, who accused Labor of Opposition Leader Tony Abbott has backed the plan. events within a year, in a crackdown on gambling failure on refugees and said asylum-seekers would inducements. The paper said that the move could receive better treatment in Nauru than Malaysia. Smoke in the lobby cost the nation’s television networks tens of millions The Age reported that Tony Barry, former Liberal of dollars. Communications Minister Stephen Conroy staff member and adviser to Malcolm Turnbull, said that sporting codes, broadcasters and betting JUSTICE had joined a lobbying campaign to help the tobacco agencies would be given 12 months to voluntarily industry fight the federal government’s plain cease the practice or else face legislation under a deal packaging reforms. Barry is working for the Alliance between state and federal gambling ministers. Checkmate for bishop of Australian Retailers, a front-group funded by the A sacked Catholic Bishop accused the Pope big three tobacco companies. The Age also said that Trouble in paradise of controlling outspoken bishops through fear, the Institute of Public Affairs researchers had been The Age said that pressure was being brought to bear humiliation and threats of dismissal, The Australian vocal in their defence of the tobacco industry’s right on independent crossbencher Andrew Wilkie to reported. William Morris, a Toowoomba bishop who to maintain brands on packets. IPA executive director abandon his timetable for poker machine reform, in spoke out against sex abuse within the church and John Roskam refused to confirm whether it receives the first sign of internal party unrest over Julia Gillard’s lobbied for women and married men to be ordained, donations from big tobacco, because it had become power deal with the Tasmanian MP. The liquor and said he had taken ‘forced retirement’ after the Pope the target of threats. hospitality workers union, United Voice, New South had denied him a defence to allegations of doctrinal Wales secretary Tara Moriarty, who sits on the disobedience. Federal Court appointment ALP national executive and is a vice-president of the Bernard Murphy is the first Victorian solicitor to be NSW branch of the party, warned Wilkie that tens of Plain packaging advert appointed to the Federal Court. The Financial Review thousands of jobs will be threatened by the push for British American Tobacco Limited ran advertisements reported that federal shadow attorney-general mandatory pre-commitment on poker machines. critical of proposed plain packaging laws that would George Brandis questioned the government’s virtually banish logos, brand images, colours and decision to appoint Murphy, ‘an old associate of the Disclosure time promotional text from packs. It argued that ‘no Prime Minister’s from a well-known firm of Labor The Australian revealed that the ALP took about company would stand for having its brands taken Party solicitors’. $1.4 million in donations from the hotel and gaming away’ and that the move ‘may infringe international industries last year as the Gillard government prepared law trademark and intellectual property law’. The to negotiate measures to combat problem gambling. advertisements suggests that the government may SPORT. GAMING end up ‘spending millions’ in legal fees, for defending an ‘idea unproven anywhere in the world’. AFL tackle criticism GOVERNANCE The Financial Review reported that Australian Football Counting the packaging cost League chief executive Andrew Demetriou denied Christian Kerr at The Financial Review warned that the sport’s close links with betting agencies has Abbott on the up plain tobacco packaging could prove a costly mistake. harmed its integrity, and he rejected claims that As of 4 May, Opposition Leader Tony Abbott’s He wrote that if the proposals succeed, they would most of the 16 AFL clubs are heavily reliant on poker approval rating was on the rise, thanks mainly to his spark a series of similar strikes against smoking across machines. In a speech to the National Press Club constant campaigns against the carbon tax and the the globe. But if the tobacco companies, as they have in Canberra, Demetriou said that having betting Government’s handling of illegal boat arrivals and warned, challenge laws which they say will rob them agencies as sponsors had been more advantageous detention centres. Newspoll statistics published in

6 LETTER FROM CANBERRA

The Australian showed that Abbott’s approval rating contrary to the remarks of the Treasurer in this place What Wilkie wants had risen from 36 per cent to 42 per cent of a four today,’ he said in the paper. On Friday May 27, the front page of The Australian week period. A PLUS was dominated by an item on independent Territory retirement MP Andrew Wilkie, whom the paper identified as But also cops blame Australian Capital Territory Chief Minister Jon ‘the most unpredictable of the independents’. In a The Australian published the results of The Australian Stanhope has retired after ten years in that role. column on the right of the page a list showed ‘what Election Study which, based on a detailed survey Thirteen years in the assembly, aged 60. Wilkie really wants’. The Australian felt that Wilkie’s conducted immediately after the election in August, position on climate change was that Australia had an found that voters’ dislike of the Opposition Leader A newman obligation to do something about it, and that a price added more than 1 per cent to Labor’s vote. Julia A Newspoll published in The Australian suggested that should be put on carbon pollution. On Asylum Seekers Gillard’s unpopularity also benefited the other side of Campbell Newman has revived the conservatives’ Australia must honour the UN Refugee Convention politics, but it increased the Coalition’s vote by only 0.2 hopes of regaining government in Queensland. On and protect people fleeing persecution, and full weight per cent. The net 0.9 per cent shift to Labor attributable a two-party-preferred basis, the LNP’s vote surged should be brought to bear on people-smugglers. On to leadership was enough to keep Labor in power in from 48 per cent to 60 per cent, giving it a 20-point poker machines he reportedly believes a mandatory an election where it finished with 50.12 per cent of lead over Labor. pre-commitment system should require players to the two-party-preferred vote and an equal number of set limits on the amount of money they’re prepared to seats to the Coalition (not including West Australian Innovative move lose. The paper also said that he wanted work on the National Tony Crook, who sits as an independent). The Financial Review reported that the Secretary National Broadband Network to continue. The calculations are included in an analysis of the of the Department of Innovation, Industry, Science survey results by two political scientists - Clive Bean and Research, Mark Pearson, departed to head Katter out of the bag of the Queensland University of Technology and Ian up the New South Wales Department of Trade and The Age wrote that Queensland Federal MP Bob McAllister of the Australian National University. The Investment. The vacated role will be filled byDon Katter was set to unleash the power of a punitive new survey asked voters to rate leaders on a scale from Russell, once right-hand man to Paul Keating, political movement on Canberra, prior to the launch of zero, representing strong dislike, to 10 for strong his Australian Party. liking. Although Gillard at the August election would No straight answer have expected to be still enjoying a honeymoon after The Australian said Julia Gillard played down the ALP’s tell-tale heart replacing Kevin Rudd two months earlier, she rated fact that the conference of Labor’s Victorian branch Geoff Kitney at The Financial Review offered that just below neutral at 4.9. was unable to raise a quorum to debate same-sex even in a bipartisan moment, Labor broods over the marriage. But amid claims that the party’s Right vexed leadership issue. He was referring to opposition Tony and Turnbull factions colluded to stymie the debate, the Prime leader Tony Abbott’s praise of Kevin Rudd’s The paper have been generally suggesting tension Minister has also said that she expects an open leadership, which, he said, probably caused some is surfacing between Tony Abbott and Malcolm discussion on marriage rights at Labor’s national discomfort in the Labor ranks. Turnbull. The Australian reported that Abbott was conference in Sydney in December. accused of deliberately undermining Turnbull, after Nobody’s listening confirmation that the Opposition Leader had prior Queensland priorities Prime Minister Julia Gillard was reported by Laura knowledge of a leaked email savaging the Turnbull The Financial Review reported that Queensland Tingle at The Financial Review as having told the for missing important parliamentary ballots. Evidently, Premier Anna Bligh had vowed to put rebuilding the Labor Party caucus she was playing the ‘long game’ Turnbull expressed his fury at the email, confronting state ahead of reclaiming its AAA credit rating as she in politics – making hard political decisions early that its author - Coalition Party Whip Warren Entsch - in faced her toughest political test, from former Brisbane would reap benefits later for a government that is Parliament. lord mayor Campbell Newman and a resurgent going to serve a full term. However, Tingle’s article Liberal National Party. claims that both sides of politics say people have Endangered Tasmanian stopped listening to Gillard. The Australian reported former Tasmanian premier Tired of sitting around David Bartlett’s announcement that he was quitting An interim report looking at the impact of the Speaker courts crisis cabinet and parliament. Bartlett, who quit as parliamentary reforms, and obtained by The Age, said House of Representatives Speaker Harry Jenkins premier in late January amid flagging opinion polls extended sitting hours may have ‘potential adverse was reported by the ABC online to be no longer and a budget blow-out, had remained as Attorney- effects’ on MPs and their families. ‘Current sitting considering his resignation, after one of his rulings General and Justice Minister in the power-sharing hours cannot be sustained,’ said the report by the was defeated this afternoon. Jenkins named government headed by his successor Lara Giddings. House of Representatives standing committee on Opposition backbencher Bob Baldwin for allegedly His resignation was the third recent departure for procedure. Chairwoman and Western Sydney Labor rowdy behaviour, meaning a vote would be taken on the government, with Education Minister Lin Thorpe MP Julie Owens said concerns about health, work whether he should be suspended from Parliament for losing her Upper House seat just a few days before, quality and family life were ‘presented strongly’ by 24 hours. But the ABC reported that when the decision and Treasurer Michael Aird quitting in December. backbenchers on both sides. was put to a vote, independent MP Rob Oakeshott and WA Nationals MP Tony Crook delivered the G-G goes to Vietnam Tabloid turmoil Coalition a win. Labor lost the vote despite Greens Days after her appearance at the British royal wedding, The Age reported on two recent incidents involving MP Adam Bandt and independent Andrew Wilkie Governor-General Quentin Bryce made an official MPs and the tabloids. First, Greens leader Bob Brown supporting the Government. Having failed to win visit to Vietnam, where she met President Nguyen let fly against the Murdoch ‘hate press’. Second, a his vote, Jenkins said he would take some time to Minh Triet, and opened the World Conference on senior government frontbencher launched a broadside ‘consider my position’ and decide if he should resign. Drowning Prevention in Danang. against News Ltd’s The Daily Telegraph. Infrastructure But Opposition Leader Tony Abbott - despite leading Minister and Leader of the House Anthony Albanese his party in opposing the Speaker’s motion - was He can dole it out accused the Sydney tabloid of running two front-page quickly on his feet to move a confidence motion in The Australian reported that Parliament’s youngest stories in 48 hours with ‘no basis in fact whatsoever’. the Speaker. The situation bore some similarity to ever MP, Wyatt Roy, had taken offence at a Albanese delivered his view to journalists gathered that of Jim Cope, who resigned as speaker when he parliamentary quip from Wayne Swan, claiming he for a weekly briefing after Labor’s caucus meeting came into conflict with former prime ministerGough had been ‘most grievously’ misrepresented as a yesterday. He said he had tried to call The Daily Whitlam. In February 1975, the Whitlam government dole recipient. ‘I have never spent a day on the dole, Telegraph’s editor, but his call was not returned.

7 4 May to 6 June 2011 refused to support him when he ‘named’ minister recent years in the finance industry, at present holding • Deficit reduced from $49.4bn to $22.6bn next Clyde Cameron. the position as chairman of NSW State Super. The year, surplus of $3.5bn by 2012-13 outgoing department head, Mark Patterson, is also • Unemployment to 4.75 per cent, GDP growth of More house antics a conservative economist, having been lured from his 4 per cent in 2011-12 The Australian reported that Labor indignation about position as chief executive of the Australian Chamber • Dependent spouse tax offset abolished for alleged Coalition sexism sparked an angry counter- of Commerce and Industry by former prime minister under-40s attack from female Liberal MPs, who accused their John Howard to head the Industry Department. The • Two-year freeze on threshold for key family ALP counterparts of hypocrisy. A day after Labor Australian also covered prime minister Julia Gillard payments to save $1.2bn MPs complained bitterly about Liberal senator David announcement that Paul Grimes would be the • Disability Support Pension eligibility tightened Bushby making a noise like a cat at Finance Minister new secretary of the Department of Environment, and work tests toughened Penny Wong, the Liberals told The Australian that replacing Robyn Kruk, who is taking up a position • $3bn training package with tougher work tests Labor women feigned indignation when it was in their as chief executive of the new National Mental Health for single mums and ‘earn or learn’ requirement political interests but ignored inappropriate comments Commission. Dr Grimes was previously Associate for unemployed under-21s from their own side. Secretary in Gillard’s department. • Early payment of $300 Low Income Tax Offset • $1bn crackdown on company car FBT Another close call • 16,000 skilled migrants for regions with skills The Financial Review said that the Gillard government BUDGET shortages had suffered a second challenge to its parliamentary • Asylum-seeker processing costs blow out to authority in three days, after a row over proposed $2.5bn over 5 years superannuation legislation that could have changed Budgeting for the future • $2.2bn for mental health over five years the federal budget. The Greens, Labor’s minority As expected, Treasurer Wayne Swan’s 2011 • $1.8bn for regional hospitals and health partner in government, and the Coalition are unhappy budget was heavy on spending cuts, as the federal facilities, $717m for more diagnostic imaging that the government could exploit a parliamentary government aims to convert a $50 billion deficit to and $53m public dental package rule – that only ministers can present money bills – to a $3.5 billion surplus in two years. The majority of • Flood levy to raise $1.7bn over two years throw out bills from non-government MPs if there is The Financial Review’s experts gave the budget a • $4.3bn in cuts and spending deferrals for even a minor cost to the federal budget. The trigger for positive review, saying that the $22 billion worth of Defence over four years. the constitutional difficulty was a private member’s spending cuts were necessary to keep Australia’s bill from Liberal MP Bronwyn Bishop, presented economy strong. Laura Tingle, one of the paper’s Enough is enough the previous week, to remove the age limit, which is chief financial columnists, said the budget ‘contains Finance Minister Penny Wong defended the federal 70 but will rise to 75, for workers receiving employer a range of innovative and intelligent measures which budget against criticism from former Reserve Bank superannuation payments. Speaker of the House of address Australia’s skills shortage with considerable of Australia official John Broadbent. The Financial Representatives Harry Jenkins told Parliament that flexibility.’ However, Tingle’s colleagueDavid Crowe review reported that the 30-year RBA veteran he and the parliamentary clerks had examined the was not so impressed, writing that ‘the cuts to Broadbent had said the Budget was far from ‘tough’, constitutionality of private members’ bills and said outlays in the budget might not be enough to keep and that it should have contained more spending cuts Ms Bishop’s bill could not proceed in its current form the Gillard government on track to meet some of to prevent mortgage rates from rising. without a money bill a.k.a appropriation bill. While the the big promises that underpin its fiscal policy.’ bill that triggered the controversy was presented only Analysts for The Australian seemed to take a slightly Rudderless a week previously, Speaker Jenkins said the clerks more negative view of Swan’s plans, with columnist The Financial Review reported that nearly $3.3 billion had examined the ambiguities over money bills in the Michael Stuchbury writing that the budget is of spending initiatives by former prime minister Kevin hung Parliament for several months. ‘punting everything on our China luck holding. It leaves Rudd have been dumped, cut or redirected to help get no prospect of building a solid surplus.’ Editor-at-large the budget in surplus and fund new programs. Some On the inside Paul Kelly described it as ‘a patchwork budget to suit of those cut in the Budget were key pledges made in The Australian reported that Dr Don Russell, who a patchwork economy,’ saying that it was ‘neither 2007 that helped Labor win the election. Others were was Paul Keating’s chief economic adviser, had overtly tough nor generous,’ and accusing it of lacking only a year old, raising queries on their design. been appointed the Secretary of the Innovation character. According to The Australian, key points of Department. In 1993, Keating appointed him as the budget were as follows: Australia’s ambassador to Washington. He has spent

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Perth, Box London,2282U, Melbourne,Auckland, USA Victoria and Indonesia 3001, Australia Tel: (03) 9629 6888 Fax: (03) 9629 1250 (03) 9622 8387 Email: [email protected] Website: www.roymorgan.com 128 Offices also in: Sydney, Brisbane, Adelaide, Perth, London, Auckland, and USA 139 4 May to 6 June 2011 LETTER FROM CANBERRA refused to support him when he ‘named’ minister recent years in the finance industry, at present holding • Deficit reduced from $49.4bn to $22.6bn next Westerndioxide?” wallop Most Australian electorsNew (50%) enforcer disagree with the proposed carbon2012-2013, tax and on for allcompanies other businesses emitting the following Clyde Cameron. the position as chairman of NSW State Super. The year, surplus of $3.5bn by 2012-13 The Commonwealthcarbon willdioxide take a $1.9if it billion means budget higher hit Theelectricity Financial Review charges covered, 45% the introductionagree with of new the carbonyear. tax and 5% can’t say. outgoing department head, Mark Patterson, is also • Unemployment to 4.75 per cent, GDP growth of after Western Australia lifted its resources royalties. Australian Securities and Investment Commission On a State level opposition is strongest in Queensland (56%) and Western Australia (55%). Nearly half of those More house antics a conservative economist, having been lured from his 4 per cent in 2011-12 The Financial Review wrote that the move sparked a chairman Greg Medcraft. He replaced Tony Austrade change up Measuring Public Opinion for over 65 Years - The Roy Morgan Research Centre Ltd. in NSW (49%) also disagree. However, more electors in Victoria (49%), South Australia (49%) and Tasmania The Australian reported that Labor indignationA.B.N. about 92 004 433position 265 as- Quality chief executive System ofCertified the Australian to AS/NZS Chamber ISO 9001• & ISODependent 20252 spouse tax offset abolished for brawl with the Gillard government and put the state D’Aloisio. Federal Trade Minister Craig Emerson announced alleged Coalition sexism sparked an angry counter- of Commerce and Industry by former prime minister under-40s at risk of reduced(59%) federal agree funding. with Federalthe carbon Treasurer tax even if it means higher electricity charges. a comprehensive reform of Austrade, whose annual attack from female Liberal MPs, who accused their John Howard toFinding head the Industry No. 4674Department. The • Two-year freeze on threshold for key family Wayne SwanNuclear responded Powerthat the government alternative would CAMAC appointments budget of almost $200 million will be focused more on ALP counterparts of hypocrisy. A day after LaborAvailable Australian alsoon coveredWebsite: prime www.roymorgan.comminister Julia Gillard payments to save $1.2bn refund the miners who had to pay the extra royalties, The Financial Review listed the federal government’s emerging markets. In an interview with The Australian MPs complained bitterly about Liberal senator David announcement that Paul Grimes would be the • Disability Support Pension eligibility tightened in accordanceDespite with the the peace concern deal Labor about negotiated carbon dioxidenew appointments emissions, to the Australian Corporations andelectors Markets don’t at believeAustrade’s nuclear Sydney headquarters, power is CEO the Peter Grey On June 6, 2011 Bushby making a noise like a cat at Finance Minister new secretary of the Department of Environment, and work tests toughened with resourcesanswer companies to cleaner over its energymining tax. Whenlast askedAdvisory “If Committee. the worries Denise about McComish carbon, Janedioxide said are ‘We a realwant toproblem. end up with Many a more suggest contemporary the Penny Wong, the Liberals told The Australian that replacing Robyn Kruk, who is taking up a position • $3bn training package with tougher work tests year. But hecleanest warned energythat the federalsource government Australia canMcAloon use ,is David nuclear Gomez pow ander. Michael Do youMurray support were Australiaversion of Austrade,developing one which nuclear is focused power on tothose Labor women feigned indignation when it was in their as chief executive of the new National Mental Health for single mums and ‘earn or learn’ requirement was likely toreduce recoup Australia’sthe money by reducingcarbon the dioxide $2 appointed,emissions while or not?”Ian Ramsay Of all, Aliceelectors McCleary 59%, believemarkets we which shouldn’t are important develop for Australia nuclear in 2011 political interests but ignoredAUSTRALIANS inappropriate comments Commission. IN A QUAN Dr Grimes wasDARY previously ABOUTAssociate ‘CARBONfor unemployed under-21s TAX’ billion in infrastructure grants it had promised to Geoffrey Nicoll and Greg Vickery were reappointed and onwards’. ‘We are looking at emerging markets, power to reduce Australia’s carbon dioxide emissions compared to only 36% that say we should develop nuclear from their ownA specialside. telephone Morgan PollSecretary conducted in Gillard’s last department. week on the nights of May• 31Early – June payment 2, of 2011 $300 Lowfound: Income Tax Offset Western Australia. The Australian quoted Premier for a three-year period. Rosey Batt, Rachel Webber frontier markets. As a government agency we have to power and 5% can’t say. • 50% of Australians when asked for their view of Global Warming• say$1bn “If crackdown we don’t on actcompany now car it FBTwill be Colin Barnett saying that relations with Canberra and Damian Egan were appointed to the legal look at where we can add the most value -- and that is • 16,000 skilled migrants for regions with skills were at a lowA clear point, majorityand the paper of suggestedelectors inthat all Statescommittee. are opposed to developing nuclear powerin the moreto reduce difficult carbonmarkets, dioxidewhere there are cultural Another close calltoo late,” 32% believe “Concerns are exaggerated,” and 15% say “It is already too late.” The Financial Review said that the Gillard government BUDGET shortages he was formingemissions: closer links New with SouthBeijing ratherWales than (53% don’t want nuclear power cf. 41% do wantor nuclearlinguistic differences.’ power); VictoriaThe Australian (62% reported cf. that had suffered a second• 53%challenge of toAustralian its parliamentary electors oppose the Gillard Government’s proposed• Asylum-seeker carbon tax, processing 37% costssupport blow theout to Australia’s capital.32%); Queensland (65% cf. 28%);Banking Western Australiaon change (58% cf. 39%); South AustraliaAustrade operates (51% in cf. 100 44%) cities in and 55 countries, Tasmania and is authority in three days,carbon after a rowtax overlegislation proposed and 10% can’t say. $2.5bn over 5 years (76% cf. 24%). A Senate inquiry into banking competition found serviced by 70 Australia-based executives, assisted superannuation legislation• If the that carboncould have tax changed is introduced Budgeting Australian for the electo futurers are split on whether• $2.2bn a future for mental Prime health overMinister five years Tony Where there’s a Wilkie that several key measures needed to be rethought, by many more locally. The changes announced • $1.8bn for regional hospitals and health Gary Morgan says: the federal budget. TheAbbott Greens, should Labor’s overturnminority theAs expected,carbon taxTreasurer with Wayne45% supportingSwan’s 2011 Abbott overturning the carbon tax Unless the Gillard government bows to pressure to in order to help smaller banks remain competitive will rationalise Austrade’s presence in developed partner in government, and the Coalition are unhappy budget was heavy on spending cuts, as the federal facilities, $717m for more diagnostic imaging scale back its“Importantly unpopular cuts to – the as private last healthweek’s specialwith the ‘big telephone four,’ The Age Morgan reported. ThePoll committee, showed –markets only 37%in the ofUS andAustralian Europe, and electors will cut some that the government couldlegislation exploit a andparliamentary 45% opposed government to Abbott aims to convertoverturning a $50 billion the deficit carbon to tax legislation.and $53m public dental package insurance rebate for well-off households, the move which consists mostly of Coalition senators, made of its operations in Australia, to allow greater focus support a carbon tax, while 53% of Australian electors are opposed to the Gillard Government’s carbon tax rule – that only ministers• A can clear present majority money bills of – Australianto a $3.5 billion electors surplus (64%) in two years.say thThee proposedmajority of carbon• Flood tax levy will to raise make $1.7bn no over difference two years to may be rejected by Parliament. The Financial Review 38 recommendations, including removing the ban on up-and-coming markets where on-the-ground legislation. However more Australians support a carbon tax applying to brown coal (48%) and black coal throw out bills from non-governmentthe world’s MPs climate if there comparedis The Financial to 31% Review that’s experts say it gave will. the budget a • $4.3bn in cuts and spending deferrals for said that the change would leave the government with on mortgage exit fees, which it described as a ‘knee- government assistance can make a much bigger (51%) than support the carbon tax currently proposed by the Gillard Government. even a minorFollowing cost to the federal these budget. questions The trigger the for Morgan positive Poll review, asked saying a seriesthat the of$22 further billion worth questions of aboutDefence the overcarbon four years. tax and its potential a budget black hole of more than $2 billion. Tasmanian jerk reaction.’ It also urged a rethink on the wholesale difference to Australian exporters. ‘Europe and North the constitutional difficulty was a private member’s spending cuts were necessary to keep Australia’s independent MP“Although Andrew Wilkie more told electors Parliament support he funding a carbon guarantee, tax which applying would meanto brown that smaller coal andAmerica black may coal provide than potentially oppose greater it, opportunitiesmost effect on Australia due to our reliance on brown coal and black coal, the effect on electricity charges and whether bill from Liberal MP Bronwyn Bishop, presented economy strong. Laura Tingle, one of the paper’s Enough is enough would not supportAustralian the changes. electors (50%) disagreelenders with would abe carboncharged the tax same on as companiesthe big banks. emitting- and business carbon should dioxide and will if continueit means to exploit nuclear power is a potential solution to provide cleaner energy that does not emit carbon dioxide. the previous week, to remove the age limit, which is chief financial columnists, said the budget ‘contains Finance Minister Penny Wong defended the federal higher electricity charges. The seven-month investigation found that reining in those opportunities,’ Grey said. ‘But Austrade can add 70 but will riseBrown to 75, for coal workers generated receiving employer Power a range Stations of innovative and intelligent measures which budget against criticism from former Reserve Bank Swiss cheese ‘bi-bank’ power through regulation would be counter- less value there because businesses themselves can superannuation payments. Speaker of the House of address Australia’s skills shortage with considerable of Australia official John Broadbent. The Financial The Age claimed“This that theseems government contradictory, faces a hole of butproductive, may asbe would explained an Australia-Post-style by the Gillard‘people’s Government’snavigate their way aroundpromises Europe andof North‘hefty’ America’. RepresentativesA majority Harry Jenkins of Australian told Parliament electors that whenflexibility.’ told: However, “Victoria Tingle’s currently colleagueDavid relies Crowe on brownreview coal reported to generate that the electricity30-year RBA which veteran about $3.4 billioncompensation over four years for in its many budget households if its bank.’ to Instead, offset it suggestedthe effect a broaderof the reviewcarbon of the tax on the household budget; or it may he and the providesparliamentary about clerks 85% had examinedof Victoria’s the powerwas not. Brownso impressed, coal iswriting different that ‘the from cuts black to coalBroadbent as it had is saidnot thesafe Budget to be was exported far from ‘tough’, in proposed meanssimply test on reflect the private the health stage insurance of the carbonfinancial tax system, debate a move – itwhich is highlyhas previously political been (withBanks support check for credit the tax tank correlating constitutionalityships. of privateA carbon members’ tax willbills andresult said in aoutlays significant in the budget increase might innot the be enoughcost of to generating keep and thatVictoria’s it should have power.” contained And more asked spending “Are cuts rebate is rejected.strongly The legislation with supportis strugglingm for withthe ALP/Greens)backed by the opposition and the and detaile Treasury.d issues are notMajor yet bankwell executives articulated warned in The the Financial public Review Ms Bishop’syou bill could aware not proceedof this in or its not?” current formwere notthe awareGillard government (53%), while on track 47% to meetare aware.some of to prevent mortgage rates from rising. Queensland independentdomain – Bob so electorsKatter speaking are learning out as the debate unfolds, and the implicationsthat are recent debated. reforms which are aimed to target without a money bill a.k.a appropriation bill. While the the big promises that underpin its fiscal policy.’ against it, and New South Wales MP Tony Windsor Driving small business consumer lending risk restricting borrower choice, A majority of electors in Victoria (72%) and Tasmania (56%) are aware, while majorities in other States are not “However nuclear energy is not seen as the answer even if the worries about high carbon dioxide emissions bill that triggered the controversy was presented only Analysts for The Australian seemed to take a slightly Rudderless saying he wouldare votereal. against A clear the proposal majority in its(59%) The ofHerald Au Sunstralian reported electors that small businessesdo not wantwould to chokingdevelop credit nuclear access, power and wiping to reduce out several a week previously,aware Speaker – Western Jenkins Australia said the clerks (68%), more Queensland negative view (64%), of Swan’s Ne plans,w South with columnistWales (60%)The Financialand South Review Australia reported that (57%). nearly $3.3 billion previous form. get an instant $5,000 tax write-off when their owners hundred million dollars in income annually. While the carbon dioxide emissions compared to only 36% that do. had examined the ambiguities over money bills in the Michael Stuchbury writing that the budget is of spending initiatives by former prime minister Kevin bought a work vehicle after July next year. Treasurer intent of reform has been welcomed, bankers say that Electors were then asked “Do you think the carbon tax policy should or should not apply to Victoria’s brown “Some commentators have criticised certain questions asked by the Morgan Poll in recent days on this topic. hung Parliamentcoal for generated several months. power stations?” Despite‘punting everything being told on our about China luck the holding. importance It leaves of Ruddbrown have coal been todumped, Victoria’s cut or redirected electricity to help get Wayne Swan said that a tradesman paying the 30 per some changes have gone too far, and have the effect no prospect of building a solid surplus.’ Editor-at-large the budget in surplus and fund new programs. Some BUSINESS.We have ECONOMY. conducted TAX this researchcent totax ratetry whoand bought de-politici a new utese costing the $33,960arguments of thathindering are competition.being mounted The $197 forbillion and personal system and the implications of a carbon tax, 48% of electors believe a carbon tax should apply to Victoria’s On the inside Paul Kelly described it as ‘a patchwork budget to suit of those cut in the Budget were key pledges made in against the proposed carbon tax.would We getare back trying $1275 to in get their to following the heart tax return. of the issuescredit card and sector find has out been what singled Australian out as the most The Australianbrown reported coal that generated Dr Don Russell power, who stationsa patchwork, 42% economy,’ of electors saying don’tthat it andwas ‘neither10% can’t 2007 say. that This helped is Labor significantly win the election. higher Others were Rough patchelectors really think about the proposalThe rest would and be what depreciated effects in the it normalmay have way. – andadversely whether affected. they thinkThe consumer the arguments credit reforms was Paul Keating’sthan the chief 37% economic of Australian adviser, had electors overtly who tough supponor generous,’rt the and Gillard accusing Government’sit of lacking only acarbon year old, raisingtax. queries on their design. The Australianbeing economy raised experienced for and againstits worst the proposed carbon tax are in fact valid debatingcame points.”into effect for the big banks from January, been appointed the Secretary of the Innovation character. According to The Australian, key points of contraction in 20 years, registering a 1.2 per cent fall Building red tape and place a greater onus on lenders to assess a More electors in every State believe a carbon tax should apply to Victoria’s brown coal generated power stations: Electors were asked a series of questions about the proposed carbon tax, including several questions about how the Department.New In 1993, South Keating Wales appointed (48% shouldhim as applythe budget cf. 40% were notas follows: apply); Victoria (48% cf. 42%); Queensland (47% cf. 40%); in gross domestic product for the first quarter. The building industry is seeking urgent talks over the borrower’s ability to afford credit. They apply to all Australia’s ambassador to Washington. He has spent carbon tax will apply to electricityfederal generation government’s including $513 million brown tax crackdowncoal, black on coalconsumer-lending and nuclear products power. – credit These cards, questions mortgages Western Australia (49% cf. 48%); South Australia (53% cf. 34%) and Tasmania (60% cf. 28%). ANZ bosswere warns asked of aftertough voting times intentionconstruction questions contractors. and previ The Financialously releasedReview aired questions and personal concerning loans. the carbon tax and Black coal generated Power Stations The Australianpotential reported effects that, despite of carbon his company dioxide fearsemissions it will increase which both were red tape released and the bargaininglast Friday by the Morgan Poll. recently posting a record $2.8 billion profit, ANZ leverage of militant trade unions. The paper said Tax perks in their sites Support is even stronger (51%) for a carbon tax applying to Australia’s black coal generated power stations; 39% chief MikeThis Smith telephone believed AustralianMorgan economicPoll on issuesthat Masterrelating Builders to the Australiacarbon taxwants was a meetingconducted The over Financial the Review last six said days that the and Australian nights, Taxation do not support and 10% can’t say. Once again this is significantly higher than the 37% of Australian electors situations remainedMay 31 volatile, – June and 5,that 2011 the nation with is annot Australia-widewith Assistant Treasurer cross-secti Bill Shortenon of 1,261over the Australians plan Office aged was reviewing 14+ including the generous 1,045 living-away-from- electors. FOR IMMEDIATE RELEASE that support the Gillard Government’s carbon tax. prepared for the ‘structural’ economic shift that will to force principalFor contractors further toinformation report annually: to home allowances paid to professionals and other create damaging consequences for already struggling the Australian Taxation Office on the payments workers, due to concerns that the tax-free allowances A majority of electors in four States support a carbon tax applying to Australia’s black coal generated power Gary Morgan: Office +61 3 9224 5213 Mobile +61 411 129 094 industries. they make to contractors. MBA chief executive are being rorted. EXCLUSIVELYstations: New South Wales (53% should $100K+ apply cf. 37% not appl y); Victoria (51% cf. 39%); South Australia (53% Michele Levine:Wilhelm Harnisch Office said +61 the industry3 9224 feared 5215 that Mobilethe +61 411 129 093 cf. 34%) and Tasmania (60% cf. 28%). In addition, more electors in Queensland (47% cf. 43%) and Western New bossMargin of Error new reporting regime was a guise for attacking the Outfoxed JOBSAustralia (46% cf.AND 43%) believe TALENT a carbon tax should apply than should not apply. The Australian Securities and Investments legitimacy of contracting in the sector. Foxtel chief executive Kim Williams has argued in CommissionThe appointed following Greg Medcraft table givesas its boss. indications of the likely range within which estimatesThe Australian would that thebe Australian 95% likely Competition to fall, and Higher electricity charges expressed as the number of percentage points above or below the actual estimate. Allowance for design effects www.sixfigures.com.au However, with the retirement of chairman Tony Wouldn’t it be nice Consumer Commission should not block a $1.9 billion Following the question on coal generated power stations electors surveyed were asked “If the carbon tax means D’Aloisio, Medcraft(such as has stratification been left with andthe difficult weighti ng)Speaking should at a be New made South as Wales appropriate. Business lunch in bid for Austar, because regulatory issues loom as higher electricity charges, do you agree or disagree with the proposed tax on companies emitting carbon decision of whether or not to hire Samplea new commissioner Size Sydney, Federal TreasurerPercentage Wayne Swan Estimate said that the only potential risk to consolidation in the pay-TV to oversee investment banks and financial planners. 40%-60%he would like to see the 25% company or 75% tax rate lowered 10% toor 90%sector. 5% or 95% ASIC expanded from three commissioners500 to six in 25 ±4.3cents on the dollar. However, ±3.8 Swan said that the ±2.6 ±1.9 401 Collins Street, Melbourne, Victoria 3000, G.P.O. Box 2282U, Melbourne, Victoria 3001, Australia 2009, when Medcraft, accountant Michael1,000 Dwyer government ±3.0 could not immediately ±2.7 afford to finance ±1.9 a Insolvency±1.4 changes Tel: (03) 9629 6888 Fax: (03) 9629 1250 (03) 9622 8387 Email: [email protected] Website: www.roymorgan.com and economist Peter Boxall were appointed. larger cut than the already announced one percentage The Financial Review said investors and creditors Offices also in: Sydney, Brisbane, Adelaide, Perth, London, Auckland, and USA 1,500 ±2.5 ±2.2 ±1.5 ±1.1 2,000 point ±2.1 reduction to 29 percent ±1.9 for small businesses ±1.3 in would have greater±1.0 control over the fate of insolvent

8 13 4 May to 6 June 2011 LETTER FROM CANBERRA refused to support him when he ‘named’ minister recent years in the finance industry, at present holding • Deficit reduced from $49.4bn to $22.6bn next Westerndioxide?” wallop Most Australian electorsNew (50%) enforcer disagree with the proposed carbon2012-2013, tax and on for allcompanies other businesses emitting the following Clyde Cameron. the position as chairman of NSW State Super. The year, surplus of $3.5bn by 2012-13 The Commonwealthcarbon willdioxide take a $1.9if it billion means budget higher hit Theelectricity Financial Review charges covered, 45% the introductionagree with of new the carbonyear. tax and 5% can’t say. outgoing department head, Mark Patterson, is also • Unemployment to 4.75 per cent, GDP growth of after Western Australia lifted its resources royalties. Australian Securities and Investment Commission On a State level opposition is strongest in Queensland (56%) and Western Australia (55%). Nearly half of those More house antics a conservative economist, having been lured from his 4 per cent in 2011-12 The Financial Review wrote that the move sparked a chairman Greg Medcraft. He replaced Tony Austrade change up Measuring Public Opinion for over 65 Years - The Roy Morgan Research Centre Ltd. in NSW (49%) also disagree. However, more electors in Victoria (49%), South Australia (49%) and Tasmania The Australian reported that Labor indignationA.B.N. about 92 004 433position 265 as- Quality chief executive System ofCertified the Australian to AS/NZS Chamber ISO 9001• & ISODependent 20252 spouse tax offset abolished for brawl with the Gillard government and put the state D’Aloisio. Federal Trade Minister Craig Emerson announced alleged Coalition sexism sparked an angry counter- of Commerce and Industry by former prime minister under-40s at risk of reduced(59%) federal agree funding. with Federalthe carbon Treasurer tax even if it means higher electricity charges. a comprehensive reform of Austrade, whose annual attack from female Liberal MPs, who accused their John Howard toFinding head the Industry No. 4674Department. The • Two-year freeze on threshold for key family Wayne SwanNuclear responded Powerthat the government alternative would CAMAC appointments budget of almost $200 million will be focused more on ALP counterparts of hypocrisy. A day after LaborAvailable Australian alsoon coveredWebsite: prime www.roymorgan.comminister Julia Gillard payments to save $1.2bn refund the miners who had to pay the extra royalties, The Financial Review listed the federal government’s emerging markets. In an interview with The Australian MPs complained bitterly about Liberal senator David announcement that Paul Grimes would be the • Disability Support Pension eligibility tightened in accordanceDespite with the the peace concern deal Labor about negotiated carbon dioxidenew appointments emissions, to the Australian Corporations andelectors Markets don’t at believeAustrade’s nuclear Sydney headquarters, power is CEO the Peter Grey On June 6, 2011 Bushby making a noise like a cat at Finance Minister new secretary of the Department of Environment, and work tests toughened with resourcesanswer companies to cleaner over its energymining tax. Whenlast askedAdvisory “If Committee. the worries Denise about McComish carbon, Janedioxide said are ‘We a realwant toproblem. end up with Many a more suggest contemporary the Penny Wong, the Liberals told The Australian that replacing Robyn Kruk, who is taking up a position • $3bn training package with tougher work tests year. But hecleanest warned energythat the federalsource government Australia canMcAloon use ,is David nuclear Gomez pow ander. Michael Do youMurray support were Australiaversion of Austrade,developing one which nuclear is focused power on tothose Labor women feigned indignation when it was in their as chief executive of the new National Mental Health for single mums and ‘earn or learn’ requirement was likely toreduce recoup Australia’sthe money by reducingcarbon the dioxide $2 appointed,emissions while or not?”Ian Ramsay Of all, Aliceelectors McCleary 59%, believemarkets we which shouldn’t are important develop for Australia nuclear in 2011 political interests but ignoredAUSTRALIANS inappropriate comments Commission. IN A QUAN Dr Grimes wasDARY previously ABOUTAssociate ‘CARBONfor unemployed under-21s TAX’ billion in infrastructure grants it had promised to Geoffrey Nicoll and Greg Vickery were reappointed and onwards’. ‘We are looking at emerging markets, power to reduce Australia’s carbon dioxide emissions compared to only 36% that say we should develop nuclear from their ownA specialside. telephone Morgan PollSecretary conducted in Gillard’s last department. week on the nights of May• 31Early – June payment 2, of 2011 $300 Lowfound: Income Tax Offset Western Australia. The Australian quoted Premier for a three-year period. Rosey Batt, Rachel Webber frontier markets. As a government agency we have to power and 5% can’t say. • 50% of Australians when asked for their view of Global Warming• say$1bn “If crackdown we don’t on actcompany now car it FBTwill be Colin Barnett saying that relations with Canberra and Damian Egan were appointed to the legal look at where we can add the most value -- and that is • 16,000 skilled migrants for regions with skills were at a lowA clear point, majorityand the paper of suggestedelectors inthat all Statescommittee. are opposed to developing nuclear powerin the moreto reduce difficult carbonmarkets, dioxidewhere there are cultural Another close calltoo late,” 32% believe “Concerns are exaggerated,” and 15% say “It is already too late.” The Financial Review said that the Gillard government BUDGET shortages he was formingemissions: closer links New with SouthBeijing ratherWales than (53% don’t want nuclear power cf. 41% do wantor nuclearlinguistic differences.’ power); VictoriaThe Australian (62% reported cf. that had suffered a second• 53%challenge of toAustralian its parliamentary electors oppose the Gillard Government’s proposed• Asylum-seeker carbon tax, processing 37% costssupport blow theout to Australia’s capital.32%); Queensland (65% cf. 28%);Banking Western Australiaon change (58% cf. 39%); South AustraliaAustrade operates (51% in cf. 100 44%) cities in and 55 countries, Tasmania and is authority in three days,carbon after a rowtax overlegislation proposed and 10% can’t say. $2.5bn over 5 years (76% cf. 24%). A Senate inquiry into banking competition found serviced by 70 Australia-based executives, assisted superannuation legislation• If the that carboncould have tax changed is introduced Budgeting Australian for the electo futurers are split on whether• $2.2bn a future for mental Prime health overMinister five years Tony Where there’s a Wilkie that several key measures needed to be rethought, by many more locally. The changes announced • $1.8bn for regional hospitals and health Gary Morgan says: the federal budget. TheAbbott Greens, should Labor’s overturnminority theAs expected,carbon taxTreasurer with Wayne45% supportingSwan’s 2011 Abbott overturning the carbon tax Unless the Gillard government bows to pressure to in order to help smaller banks remain competitive will rationalise Austrade’s presence in developed partner in government, and the Coalition are unhappy budget was heavy on spending cuts, as the federal facilities, $717m for more diagnostic imaging scale back its“Importantly unpopular cuts to – the as private last healthweek’s specialwith the ‘big telephone four,’ The Age Morgan reported. ThePoll committee, showed –markets only 37%in the ofUS andAustralian Europe, and electors will cut some that the government couldlegislation exploit a andparliamentary 45% opposed government to Abbott aims to convertoverturning a $50 billion the deficit carbon to tax legislation.and $53m public dental package insurance rebate for well-off households, the move which consists mostly of Coalition senators, made of its operations in Australia, to allow greater focus support a carbon tax, while 53% of Australian electors are opposed to the Gillard Government’s carbon tax rule – that only ministers• A can clear present majority money bills of – Australianto a $3.5 billion electors surplus (64%) in two years.say thThee proposedmajority of carbon• Flood tax levy will to raise make $1.7bn no over difference two years to may be rejected by Parliament. The Financial Review 38 recommendations, including removing the ban on up-and-coming markets where on-the-ground legislation. However more Australians support a carbon tax applying to brown coal (48%) and black coal throw out bills from non-governmentthe world’s MPs climate if there comparedis The Financial to 31% Review that’s experts say it gave will. the budget a • $4.3bn in cuts and spending deferrals for said that the change would leave the government with on mortgage exit fees, which it described as a ‘knee- government assistance can make a much bigger (51%) than support the carbon tax currently proposed by the Gillard Government. even a minorFollowing cost to the federal these budget. questions The trigger the for Morgan positive Poll review, asked saying a seriesthat the of$22 further billion worth questions of aboutDefence the overcarbon four years. tax and its potential a budget black hole of more than $2 billion. Tasmanian jerk reaction.’ It also urged a rethink on the wholesale difference to Australian exporters. ‘Europe and North the constitutional difficulty was a private member’s spending cuts were necessary to keep Australia’s independent MP“Although Andrew Wilkie more told electors Parliament support he funding a carbon guarantee, tax which applying would meanto brown that smaller coal andAmerica black may coal provide than potentially oppose greater it, opportunitiesmost effect on Australia due to our reliance on brown coal and black coal, the effect on electricity charges and whether bill from Liberal MP Bronwyn Bishop, presented economy strong. Laura Tingle, one of the paper’s Enough is enough would not supportAustralian the changes. electors (50%) disagreelenders with would abe carboncharged the tax same on as companiesthe big banks. emitting- and business carbon should dioxide and will if continueit means to exploit nuclear power is a potential solution to provide cleaner energy that does not emit carbon dioxide. the previous week, to remove the age limit, which is chief financial columnists, said the budget ‘contains Finance Minister Penny Wong defended the federal higher electricity charges. The seven-month investigation found that reining in those opportunities,’ Grey said. ‘But Austrade can add 70 but will riseBrown to 75, for coal workers generated receiving employer Power a range Stations of innovative and intelligent measures which budget against criticism from former Reserve Bank Swiss cheese ‘bi-bank’ power through regulation would be counter- less value there because businesses themselves can superannuation payments. Speaker of the House of address Australia’s skills shortage with considerable of Australia official John Broadbent. The Financial The Age claimed“This that theseems government contradictory, faces a hole of butproductive, may asbe would explained an Australia-Post-style by the Gillard‘people’s Government’snavigate their way aroundpromises Europe andof North‘hefty’ America’. RepresentativesA majority Harry Jenkins of Australian told Parliament electors that whenflexibility.’ told: However, “Victoria Tingle’s currently colleagueDavid relies Crowe on brownreview coal reported to generate that the electricity30-year RBA which veteran about $3.4 billioncompensation over four years for in its many budget households if its bank.’ to Instead, offset it suggestedthe effect a broaderof the reviewcarbon of the tax on the household budget; or it may he and the providesparliamentary about clerks 85% had examinedof Victoria’s the powerwas not. Brownso impressed, coal iswriting different that ‘the from cuts black to coalBroadbent as it had is saidnot thesafe Budget to be was exported far from ‘tough’, in proposed meanssimply test on reflect the private the health stage insurance of the carbonfinancial tax system, debate a move – itwhich is highlyhas previously political been (withBanks support check for credit the tax tank correlating constitutionalityships. of privateA carbon members’ tax willbills andresult said in aoutlays significant in the budget increase might innot the be enoughcost of to generating keep and thatVictoria’s it should have power.” contained And more asked spending “Are cuts rebate is rejected.strongly The legislation with supportis strugglingm for withthe ALP/Greens)backed by the opposition and the and detaile Treasury.d issues are notMajor yet bankwell executives articulated warned in The the Financial public Review Ms Bishop’syou bill could aware not proceedof this in or its not?” current formwere notthe awareGillard government (53%), while on track 47% to meetare aware.some of to prevent mortgage rates from rising. Queensland independentdomain – Bob so electorsKatter speaking are learning out as the debate unfolds, and the implicationsthat are recent debated. reforms which are aimed to target without a money bill a.k.a appropriation bill. While the the big promises that underpin its fiscal policy.’ against it, and New South Wales MP Tony Windsor Driving small business consumer lending risk restricting borrower choice, A majority of electors in Victoria (72%) and Tasmania (56%) are aware, while majorities in other States are not “However nuclear energy is not seen as the answer even if the worries about high carbon dioxide emissions bill that triggered the controversy was presented only Analysts for The Australian seemed to take a slightly Rudderless saying he wouldare votereal. against A clear the proposal majority in its(59%) The ofHerald Au Sunstralian reported electors that small businessesdo not wantwould to chokingdevelop credit nuclear access, power and wiping to reduce out several a week previously,aware Speaker – Western Jenkins Australia said the clerks (68%), more Queensland negative view (64%), of Swan’s Ne plans,w South with columnistWales (60%)The Financialand South Review Australia reported that (57%). nearly $3.3 billion previous form. get an instant $5,000 tax write-off when their owners hundred million dollars in income annually. While the carbon dioxide emissions compared to only 36% that do. had examined the ambiguities over money bills in the Michael Stuchbury writing that the budget is of spending initiatives by former prime minister Kevin bought a work vehicle after July next year. Treasurer intent of reform has been welcomed, bankers say that Electors were then asked “Do you think the carbon tax policy should or should not apply to Victoria’s brown “Some commentators have criticised certain questions asked by the Morgan Poll in recent days on this topic. hung Parliamentcoal for generated several months. power stations?” Despite‘punting everything being told on our about China luck the holding. importance It leaves of Ruddbrown have coal been todumped, Victoria’s cut or redirected electricity to help get Wayne Swan said that a tradesman paying the 30 per some changes have gone too far, and have the effect no prospect of building a solid surplus.’ Editor-at-large the budget in surplus and fund new programs. Some BUSINESS.We have ECONOMY. conducted TAX this researchcent totax ratetry whoand bought de-politici a new utese costing the $33,960arguments of thathindering are competition.being mounted The $197 forbillion and personal system and the implications of a carbon tax, 48% of electors believe a carbon tax should apply to Victoria’s On the inside Paul Kelly described it as ‘a patchwork budget to suit of those cut in the Budget were key pledges made in against the proposed carbon tax.would We getare back trying $1275 to in get their to following the heart tax return. of the issuescredit card and sector find has out been what singled Australian out as the most The Australianbrown reported coal that generated Dr Don Russell power, who stationsa patchwork, 42% economy,’ of electors saying don’tthat it andwas ‘neither10% can’t 2007 say. that This helped is Labor significantly win the election. higher Others were Rough patchelectors really think about the proposalThe rest would and be what depreciated effects in the it normalmay have way. – andadversely whether affected. they thinkThe consumer the arguments credit reforms was Paul Keating’sthan the chief 37% economic of Australian adviser, had electors overtly who tough supponor generous,’rt the and Gillard accusing Government’sit of lacking only acarbon year old, raisingtax. queries on their design. The Australianbeing economy raised experienced for and againstits worst the proposed carbon tax are in fact valid debatingcame points.”into effect for the big banks from January, been appointed the Secretary of the Innovation character. According to The Australian, key points of contraction in 20 years, registering a 1.2 per cent fall Building red tape and place a greater onus on lenders to assess a More electors in every State believe a carbon tax should apply to Victoria’s brown coal generated power stations: Electors were asked a series of questions about the proposed carbon tax, including several questions about how the Department.New In 1993, South Keating Wales appointed (48% shouldhim as applythe budget cf. 40% were notas follows: apply); Victoria (48% cf. 42%); Queensland (47% cf. 40%); in gross domestic product for the first quarter. The building industry is seeking urgent talks over the borrower’s ability to afford credit. They apply to all Australia’s ambassador to Washington. He has spent carbon tax will apply to electricityfederal generation government’s including $513 million brown tax crackdowncoal, black on coalconsumer-lending and nuclear products power. – credit These cards, questions mortgages Western Australia (49% cf. 48%); South Australia (53% cf. 34%) and Tasmania (60% cf. 28%). ANZ bosswere warns asked of aftertough voting times intentionconstruction questions contractors. and previ The Financialously releasedReview aired questions and personal concerning loans. the carbon tax and Black coal generated Power Stations The Australianpotential reported effects that, despite of carbon his company dioxide fearsemissions it will increase which both were red tape released and the bargaininglast Friday by the Morgan Poll. recently posting a record $2.8 billion profit, ANZ leverage of militant trade unions. The paper said Tax perks in their sites Support is even stronger (51%) for a carbon tax applying to Australia’s black coal generated power stations; 39% chief MikeThis Smith telephone believed AustralianMorgan economicPoll on issuesthat Masterrelating Builders to the Australiacarbon taxwants was a meetingconducted The over Financial the Review last six said days that the and Australian nights, Taxation do not support and 10% can’t say. Once again this is significantly higher than the 37% of Australian electors situations remainedMay 31 volatile, – June and 5,that 2011 the nation with is annot Australia-widewith Assistant Treasurer cross-secti Bill Shortenon of 1,261over the Australians plan Office aged was reviewing 14+ including the generous 1,045 living-away-from- electors. FOR IMMEDIATE RELEASE that support the Gillard Government’s carbon tax. prepared for the ‘structural’ economic shift that will to force principalFor contractors further toinformation report annually: to home allowances paid to professionals and other create damaging consequences for already struggling the Australian Taxation Office on the payments workers, due to concerns that the tax-free allowances A majority of electors in four States support a carbon tax applying to Australia’s black coal generated power Gary Morgan: Office +61 3 9224 5213 Mobile +61 411 129 094 industries. they make to contractors. MBA chief executive are being rorted. EXCLUSIVELYstations: New South Wales (53% should $100K+ apply cf. 37% not appl y); Victoria (51% cf. 39%); South Australia (53% Michele Levine:Wilhelm Harnisch Office said +61 the industry3 9224 feared 5215 that Mobilethe +61 411 129 093 cf. 34%) and Tasmania (60% cf. 28%). In addition, more electors in Queensland (47% cf. 43%) and Western New bossMargin of Error new reporting regime was a guise for attacking the Outfoxed JOBSAustralia (46% cf.AND 43%) believe TALENT a carbon tax should apply than should not apply. The Australian Securities and Investments legitimacy of contracting in the sector. Foxtel chief executive Kim Williams has argued in CommissionThe appointed following Greg Medcraft table givesas its boss. indications of the likely range within which estimatesThe Australian would that thebe Australian 95% likely Competition to fall, and Higher electricity charges expressed as the number of percentage points above or below the actual estimate. Allowance for design effects www.sixfigures.com.au However, with the retirement of chairman Tony Wouldn’t it be nice Consumer Commission should not block a $1.9 billion Following the question on coal generated power stations electors surveyed were asked “If the carbon tax means D’Aloisio, Medcraft(such as has stratification been left with andthe difficult weighti ng)Speaking should at a be New made South as Wales appropriate. Business lunch in bid for Austar, because regulatory issues loom as higher electricity charges, do you agree or disagree with the proposed tax on companies emitting carbon decision of whether or not to hire Samplea new commissioner Size Sydney, Federal TreasurerPercentage Wayne Swan Estimate said that the only potential risk to consolidation in the pay-TV to oversee investment banks and financial planners. 40%-60%he would like to see the 25% company or 75% tax rate lowered 10% toor 90%sector. 5% or 95% ASIC expanded from three commissioners500 to six in 25 ±4.3cents on the dollar. However, ±3.8 Swan said that the ±2.6 ±1.9 401 Collins Street, Melbourne, Victoria 3000, G.P.O. Box 2282U, Melbourne, Victoria 3001, Australia 2009, when Medcraft, accountant Michael1,000 Dwyer government ±3.0 could not immediately ±2.7 afford to finance ±1.9 a Insolvency±1.4 changes Tel: (03) 9629 6888 Fax: (03) 9629 1250 (03) 9622 8387 Email: [email protected] Website: www.roymorgan.com and economist Peter Boxall were appointed. larger cut than the already announced one percentage The Financial Review said investors and creditors Offices also in: Sydney, Brisbane, Adelaide, Perth, London, Auckland, and USA 1,500 ±2.5 ±2.2 ±1.5 ±1.1 2,000 point ±2.1 reduction to 29 percent ±1.9 for small businesses ±1.3 in would have greater±1.0 control over the fate of insolvent

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Western wallop New enforcer 2012-2013, and for all other businesses the following The Commonwealth will take a $1.9 billion budget hit The Financial Review covered the introduction of new year. after Western Australia lifted its resources royalties. Australian Securities and Investment Commission The Financial Review wrote that the move sparked a chairman Greg Medcraft. He replaced Tony Austrade change up brawl with the Gillard government and put the state D’Aloisio. Federal Trade Minister Craig Emerson announced at risk of reduced federal funding. Federal Treasurer a comprehensive reform of Austrade, whose annual Wayne Swan responded that the government would CAMAC appointments budget of almost $200 million will be focused more on refund the miners who had to pay the extra royalties, The Financial Review listed the federal government’s emerging markets. In an interview with The Australian in accordance with the peace deal Labor negotiated new appointments to the Corporations and Markets at Austrade’s Sydney headquarters, CEO Peter Grey with resources companies over its mining tax last Advisory Committee. Denise McComish, Jane said ‘We want to end up with a more contemporary year. But he warned that the federal government McAloon, David Gomez and Michael Murray were version of Austrade, one which is focused on those was likely to recoup the money by reducing the $2 appointed, while Ian Ramsay, Alice McCleary, markets which are important for Australia in 2011 billion in infrastructure grants it had promised to Geoffrey Nicoll and Greg Vickery were reappointed and onwards’. ‘We are looking at emerging markets, Western Australia. The Australian quoted Premier for a three-year period. Rosey Batt, Rachel Webber frontier markets. As a government agency we have to Colin Barnett saying that relations with Canberra and Damian Egan were appointed to the legal look at where we can add the most value -- and that is were at a low point, and the paper suggested that committee. in the more difficult markets, where there are cultural he was forming closer links with Beijing rather than or linguistic differences.’ The Australian reported that Australia’s capital. Banking on change Austrade operates in 100 cities in 55 countries, and is A Senate inquiry into banking competition found serviced by 70 Australia-based executives, assisted Where there’s a Wilkie that several key measures needed to be rethought, by many more locally. The changes announced Unless the Gillard government bows to pressure to in order to help smaller banks remain competitive will rationalise Austrade’s presence in developed scale back its unpopular cuts to the private health with the ‘big four,’ The Age reported. The committee, markets in the US and Europe, and will cut some insurance rebate for well-off households, the move which consists mostly of Coalition senators, made of its operations in Australia, to allow greater focus may be rejected by Parliament. The Financial Review 38 recommendations, including removing the ban on up-and-coming markets where on-the-ground said that the change would leave the government with on mortgage exit fees, which it described as a ‘knee- government assistance can make a much bigger a budget black hole of more than $2 billion. Tasmanian jerk reaction.’ It also urged a rethink on the wholesale difference to Australian exporters. ‘Europe and North independent MP Andrew Wilkie told Parliament he funding guarantee, which would mean that smaller America may provide potentially greater opportunities would not support the changes. lenders would be charged the same as the big banks. - and business should and will continue to exploit The seven-month investigation found that reining in those opportunities,’ Grey said. ‘But Austrade can add Swiss cheese ‘bi-bank’ power through regulation would be counter- less value there because businesses themselves can The Age claimed that the government faces a hole of productive, as would an Australia-Post-style ‘people’s navigate their way around Europe and North America’. about $3.4 billion over four years in its budget if its bank.’ Instead, it suggested a broader review of the proposed means test on the private health insurance financial system, a move which has previously been Banks check credit tank rebate is rejected. The legislation is strugglingm with backed by the opposition and Treasury. Major bank executives warned The Financial Review Queensland independent Bob Katter speaking out that recent reforms which are aimed to target against it, and New South Wales MP Tony Windsor Driving small business consumer lending risk restricting borrower choice, saying he would vote against the proposal in its The Herald Sun reported that small businesses would choking credit access, and wiping out several previous form. get an instant $5,000 tax write-off when their owners hundred million dollars in income annually. While the bought a work vehicle after July next year. Treasurer intent of reform has been welcomed, bankers say that Wayne Swan said that a tradesman paying the 30 per some changes have gone too far, and have the effect BUSINESS. ECONOMY. TAX cent tax rate who bought a new ute costing $33,960 of hindering competition. The $197 billion personal would get back $1275 in their following tax return. credit card sector has been singled out as the most Rough patch The rest would be depreciated in the normal way. adversely affected. The consumer credit reforms The Australian economy experienced its worst came into effect for the big banks from January, contraction in 20 years, registering a 1.2 per cent fall Building red tape and place a greater onus on lenders to assess a in gross domestic product for the first quarter. The building industry is seeking urgent talks over the borrower’s ability to afford credit. They apply to all federal government’s $513 million tax crackdown on consumer-lending products – credit cards, mortgages ANZ boss warns of tough times construction contractors. The Financial Review aired and personal loans. The Australian reported that, despite his company fears it will increase both red tape and the bargaining recently posting a record $2.8 billion profit, ANZ leverage of militant trade unions. The paper said Tax perks in their sites chief Mike Smith believed Australian economic that Master Builders Australia wants a meeting The Financial Review said that the Australian Taxation situations remained volatile, and that the nation is not with Assistant Treasurer Bill Shorten over the plan Office was reviewing the generous living-away-from- prepared for the ‘structural’ economic shift that will to force principal contractors to report annually to home allowances paid to professionals and other create damaging consequences for already struggling the Australian Taxation Office on the payments workers, due to concerns that the tax-free allowances industries. they make to contractors. MBA chief executive are being rorted. Wilhelm Harnisch said the industry feared that the New boss new reporting regime was a guise for attacking the Outfoxed The Australian Securities and Investments legitimacy of contracting in the sector. Foxtel chief executive Kim Williams has argued in Commission appointed Greg Medcraft as its boss. The Australian that the Australian Competition and However, with the retirement of chairman Tony Wouldn’t it be nice Consumer Commission should not block a $1.9 billion D’Aloisio, Medcraft has been left with the difficult Speaking at a New South Wales Business lunch in bid for Austar, because regulatory issues loom as decision of whether or not to hire a new commissioner Sydney, Federal Treasurer Wayne Swan said that the only potential risk to consolidation in the pay-TV to oversee investment banks and financial planners. he would like to see the company tax rate lowered to sector. ASIC expanded from three commissioners to six in 25 cents on the dollar. However, Swan said that the 2009, when Medcraft, accountant Michael Dwyer government could not immediately afford to finance a Insolvency changes and economist Peter Boxall were appointed. larger cut than the already announced one percentage The Financial Review said investors and creditors point reduction to 29 percent for small businesses in would have greater control over the fate of insolvent

13 4 May to 6 June 2011 companies, including the power to sack liquidators reforms on executive pay. The move threatens to force out, of the nation’s award system. The Chamber of and cap their fees, under Treasury proposals to cut the federal government into siding with the Coalition Commerce and Industry of Western Australia has costs and lift standards among corporate undertakers. and watering down Labor’s so-called ‘two-strikes’ called for the promotion of agreement-making at an The key reforms include a ‘one-stop shop’ for small limits on executive pay, which give shareholders enterprise level, including individual contracts, as businesses that run into trouble, as well as tougher greater power to reject CEO remuneration deals. well as new restrictions on unfair dismissal claims penalties for breaches, more power for regulators and unions entering workplaces. James Pearson, and an alignment of the rules covering personal Change of tune the chamber’s chief executive, said the policy bankruptcy and insolvency. The changes would also The Financial Review reported that former Labor changes were needed as Labor’s Fair Work Act was break open the ‘clubby’ industry to lawyers and others minister Bob McMullan had been nominated as a handicapping the ability of the state and national with commercial expertise, to increase competition London-based executive director of the European economy to grow and prosper. and reduce fees. But the government refused to Bank for Reconstruction and Development. He adopt the Senate report’s major recommendation, was previously Trade Minister under the Keating Historic wage hike saying that stripping the Australian Securities and government. Former Howard government Defence The Financial Review reported that the lowest paid Investments Commission of oversight of the industry and Industrial Relations Minister Peter Reith has workers would receive a 3.4 per cent pay rise under would be inefficient and costly. previously held the position. an historic decision by Fair Work Australia. The paper said the move shifts the structure of the minimum Women win on work wage system and will lead to bigger claims by those INDUSTRIAL RELATIONS. Fair Work Australia ruled that hundreds of thousands on higher pay. EMPLOYMENT of female community and social workers are underpaid and that the undervaluation of their work is partly based on gender. But The Financial Review BROADBAND & I.T. Come fly with me said that the landmark case on equal pay for women – The Gillard government proposed an increase in fly-in, which will have ramifications in other low-paid sectors Budget boost fly-out jobs in the mining sector as a way to increase dominated by female workers – is set to take months The Australian noted that the federal budget was a workforce participation and combat entrenched to translate into higher wages. boon for the technology sector. More than $1 billion joblessness, The Australian reported. Resources was allocated to public-sector projects that will Minister Martin Ferguson said the government aimed Warf action ends underpin reforms in service delivery. About 70 per to promote fly-in, fly-out jobs, particularly in Tasmania, The Maritime Union of Australia announced that cent of the funds were earmarked for the Department to help people who have lost work due to the forest damaging industrial action across three states of Human Services, which is in the midst of integrating industry restructuring package. would end early, amid concerns that significant beef Centrelink, Medicare and the Child Support Agency and cotton exports were being jeopardised by the into a super agency. Australia orders take-away Indian increasingly bitter dispute with Patrick Stevedores. Australian officials discussed a radical plan to recruit Telstra spends big up to 30,000 Indian students, to deal with a skills Jobs canned Telstra announced a $600 million upgrade to its shortage that threatens to slow the resources boom, The Australian reported that international food giant broadband network, allowing it to offer a new range The Financial Review reported. The proposal would Heinz would cut its Australian workforce by 20 per cent of digital communication tools to small businesses, involve opening the Australian education system up or 346 jobs, closing down a plant in northern Victoria, The Australian reported. The program, which will be to as many as 100,000 Indian students, with many of and cutting a quarter of the jobs at its Golden Circle rolled out over five years, will involve upgrades to them returning to their homeland upon completion of cannery in Brisbane. Under the new global strategy, 1,600 of Telstra’s stations nation-wide, enabling it to their course, a move that would also help bridge India’s Heinz will shift beetroot processing from its Brisbane deliver top-quality voice, internet services, fax and skills gap. factory to one which it owns in Hastings, New Zealand. EFTPOS over a single broadband line. Telstra chief In addition to the 160 jobs going at the Brisbane plant, David Thodey used the announcement to highlight Desal deals a tomato sauce factory at Girgarre in northern Victoria the telco’s commitment to small businesses. The Australian reported that a union deal gave workers will close, throwing 146 people out of work, while 33 at a Victorian desalination plant $50 an hour more jobs will be lost at Heinz’s plant at Wagga Wagga in Bush bashes broadband cut than their counterparts at other major projects. The southern NSW. Internet providers warned the federal government paper claimed that the overly generous pay deals that it will face a backlash from rural consumers struck at Victoria’s $5.4 billion Wonthaggi plant, Preemptive strike approved unless it revives its bush broadband subsidy scheme, estimated to have added $34 million to the project’s The Australian reported that Fair Work Australia has The Australian reported. The failing $238 million wages bill, are starting to be used as a template for upheld the right of workers to strike before workplace scheme, which was designed to make broadband union claims across Victoria. Federal Labor and union bargaining starts, prompting employers to demand the services available to rural areas at a price and speed sources confirmed the plant is seen as a benchmark Gillard government change the federal industrial laws comparable to metropolitan areas, was supposed to for new projects in the state. Union leaders and the or face ‘industrial chaos in the workplace’. Workplace run through 2012, but looks like being shut down early. Victorian Labor government defended the deal as a Relations Minister Chris Evans confirmed that a pre- Its replacement is the National Broadband Network’s special agreement for an isolated site. Dean Mighell, election review of the workplace laws would start interim satellite solution, but concerns have been the Victorian secretary of the Electrical Trades Union, in January next year. But he said the review was a raised that this solution will force rural customers to denied that unions were seeking to replicate the long-standing commitment promised in the Fair Work pay $1,000 more for broadband services than their desalination agreement. But employers nationally Bill’s explanatory memorandum, and not a response metropolitan counterparts would. expressed concern yesterday at the increased claims to employer calls for change. The tribunal’s full bench, being pursued in the construction sector. headed by president Geoff Giudice, confirmed that a Directors protected union may initiate protected industrial action against The Financial Review reported that the board of NBN Executive salary cap an employer before bargaining had begun and where Co has successfully lobbied the federal government to The Financial Review said Julia Gillard rejected a the employer had not agreed to bargain. provide legal protection for the company’s directors as demand from the Australian Greens that would limit they finalise a deal to split up Telstra. the country’s top executives to take home pay of IR overhaul from the west just under $2 million. The Greens had flagged an The Australian said employers in Western Australia Quigley apology amendment to the laws that would cap CEO salaries have urged Julia Gillard and Tony Abbott to consider The Australian said that National Broadband Network at 30 times the average wage, as a condition for a radical overhaul of the federal workplace system that chief Michael Quigley admitted making some giving the government vital support to pass landmark includes the stripping-back, and potential phasing- incorrect claims about his past as one of the senior 14 LETTER FROM CANBERRA

15 4 May to 6 June 2011 executives of French telecommunications giant Telstra combating complaints lack of housing, services and infrastructure in regional Alcatel. Alcatel has been involved in corruption in The Financial Review said Telstra consumer mobile growth areas should be found on a community-by- various countries. users would be among the first in the world to have community basis. Sustainable Population Minister their data speeds slowed when they exceed their Tony Burke launched ‘Sustainable Australia, Rudd to see CeBit mobile data allowance, and not be charged for excess Sustainable Communities’ on the same day as the A spokeswoman told The Australian that Trade domestic data. The move is part of efforts to bring report, 13 May. Minister Kevin Rudd attended the CeBIT Australia down customer complaint levels, which rose again in Technology Trade Show 2011 in Sydney and formally the first three months of the year after the company We run this city welcomed Germany as the inaugural partner country added record numbers of new customers. The Gillard government said it would play a for CeBIT Australia. more interventionist role in the planning and Rudd will officially open the show with German Risky business infrastructure priorities of Australia’s 18 biggest Foreign Minister Guido Westerwelle. CeBIT opened The Australian claimed that taxpayers face greater cities. The Australian said the federal government at Darling Harbour on 31 May. Companies presenting liabilities for construction delays or cost blowouts was prepared to ‘intimidate’ recalcitrant state or local at the show include NBN Co, Google, Fairfax, during the building of the National Broadband governments into accepting the new power balance. Microsoft, Optus, Westfield Group, eBay, MasterCard, Network, under a revamped tender process in which Infrastructure Minister Anthony Albanese launched Facebook, Westpac and Alcatel-Lucent. the government-owned NBN Co will take on more the government’s national urban policy, Our Cities, Our risks to keep down bidder costs. The revelation Future, saying that federal funding for big-city projects NBN competition concerns came amid a continuing tussle between unions and would be closely tied to productivity and sustainability The Financial Review said that the Australian contractors on wage claims and working conditions criteria laid out in the new document. Competition and Consumer Commission will that has the potential to inflate the final building costs investigate claims that the government company on the project. A 74-page document obtained by Broad spectrum rolling out the national broadband network will drive The Australian showed the unions had sought from The Financial Review reported that the federal telco installers out of business by taking over the NBN contractors a 36-hour working week, nine-day government agreed to sell $1 billion of prized market. The paper said that controversial draft laws fortnight, 20-minute smokos, ‘crib’ breaks after more broadcast spectrum to the telecommunications allow NBN Co to pick which companies install fiber- than 90 minutes overtime and the chance to volunteer industry, reneging on what emergency services optic cable connections in new property developments on development projects. groups said was a promise to consult more about across the country. Michael Sparksman, chairman reserving a portion of it for police and other similar of the Greenfield Operators Australia Group, which Mobile madness organisations. The 700MHz band of spectrum will be represents private installers, told a parliamentary The Financial Review reported that phone companies auctioned off next year after analog TV is shut down. inquiry into the NBN that the proposed laws were a now face tougher regulation after a year-long inquiry Emergency services groups had wanted about 20 per ‘felony’. He said that the laws prevented competition into customer service found self-regulation had cent reserved. and raised prices for everyday users and businesses. failed to deal with the litany of customer complaints. In its damning 140-page report, the Australian Rail frequency fights Executive protection Communications and Media Authority pointed to a The Australian reported that the nation’s peak rail The Financial Review said the federal government long list of inadequacies in customer service, from industry body had delayed its submission to the had revealed that NBN Co sought a legal indemnity the way complaints are handled to the marketing of federal communications department, pleading to from the Commonwealth to cover the risks of a ‘unlimited’ and ‘cap’ plans. retain control of 1800MHz spectrum licences. The pending business deal, yesterday. Communications Australasian Railway Association was given the Minister Stephen Conroy confirmed that the NBN Ericsson gets the signal opportunity to take its case to Communications Co board had sought the indemnity, but had been The Financial Reivew reported that Swedish Minister Stephen Conroy, after Transport Minister refused, because the commercial contract was not telecommunications giant Ericsson had been awarded Anthony Albanese intervened in its dispute with the completed. If approved later, the arrangement would a $1.1 billion contract to build and manage the fixed communications regulator over plans to reorganise be the second of its kind for the NBN board, which wireless component of the government’s $35.9 billion the spectrum band. is already covered by an indemnity that relates to its national broadband network. negotiations with Telstra to formalise an $11 billion TV standards deal to co-operate on building the network. Telstra ruling favourable The Financial Review reported that peak electrical The Financial review claimed that Telstra had scored body Master Electricians Australia wants tougher Thin customer base a critical win over its competitors after the federal certification requirements for installers of the federal The Australian reported NBN Co, which has 784 staff, government ignored calls for a tougher regulatory government’s $300 million television set-top box has at most 607 customers after Julia Gillard and regime during the transition to the National Broadband program. Under the plan, which was unveiled as part Communications Minister Stephen Conroy launched Network. Communications Minister, Stephen of the federal budget, people receiving full benefits the first NBN site on the mainland in Armidale, with Conroy, defied pleas from Telstra’s competitors from Centrelink, such as those with disabilities and just seven users. And none of the network’s users is to make the country’s largest telco sell wholesale aged pensioners, will be able to receive the equipment a paying customer yet. Opposition communications services to its own retail arm on exactly the same required for digital television. The scheme will mean spokesman Malcolm Turnbull seized on the figures, terms and conditions as it does to its rivals during the they can continue to watch television when analogue declaring them further proof that the government 10-year transition. signals are switched off across Australia by 2013. should have done a cost-benefit analysis of the $36 The chief executive of Master Electricians Australia, billion project. Malcolm Richards, said that a plan to use an online INFRASTRUCTURE test to vet installers was insufficient, and could lead to Mission Impossible rorting. The government ‘scamwatch’ website warns Leighton Holdings chief executive David Stewart has Population situation of potential rorting of the program. accused NBN Co of setting unrealistic expectations The Australian claimed that the nation’s first for contractors tendering to build the $35.9 billion population strategy does not set a target number, and Television drama National Broadband Network. The Australian reported rejects the view that population growth is good for The Australian claimed that many pensioners living the comments following allegations of price-gouging the nation and the economy. A sustainable population in public housing could be left out of pocket, after by the construction industry. strategy released by the government reportedly said a standoff between federal and state governments solutions to issues such as big-city congestion and over who will replace aerials for the digital television

16 LETTER FROM CANBERRA switchover. The Gillard government has vowed more cups of coffee daily was associated with a 20 tests that encourage students to display knowledge it will not pay for repairs to external aerials in per cent reduced risk of any form of the disease. through extended answers. Housing Commission dwellings under its $308 million Household Assistance Scheme, because the Victoria recalcitrant TAFE funding shake-up pensioners are tenants, not home owners. They say The Financial Review said Victoria was enlisting A report by Skills Australia suggested that the skills it is the responsibility of landlords - private or state support from other state governments to change gap could be significantly reduced by a change to governments - to maintain and upgrade antennas, substantially the powers of a federal watchdog that the funding structure of the higher education sector, and therefore those pensioners living in ‘detached’ would monitor their performance under the new specifically in TAFEs and private providers. An article public-funded houses will not be eligible. But the national health and hospital funding arrangement. in The Australian’s ‘Higher Education’ section reported Victorian government said it would not cover the cost Under the changes, the states will receive additional that the current system often forced students to of aerials, because it believes it is the responsibility of funding from the federal government, to cover the ‘choose courses and institutions on the basis of the tenant if they live in a detached house and not in burgeoning cost of healthcare. All states have signed fee structure rather than career choice, interests a high-rise block. up to the deal. However, there is disagreement over or aptitudes.’ If current trends continue, a shortfall the establishment of the oversight body, which would of over 200,000 qualifications at diploma level is Getting a signal ensure new performance standards in areas such as predicted by 2025. Martin Riordan, chief of TAFE Almost 150 complaints have been lodged about elective surgery and emergency department waiting Directors Australia, said that the report’s findings will the Gillard government’s free digital set-top box times are met. ‘will test the government’s appetite for educational scheme, with 62 of the cases still under investigation. reform’ and that skill shortages made the proposal Communications Minister Stephen Conroy said last Aboriginal alcohol economically rational. week that there had been ‘not one problem’ with bad Sara Hudson wrote in The Age that ‘wet canteens’ installers or rorting under the first stage of the $308 hade been tried and utterly failed in indigenous It’s academic, not practical million Household Assistance Scheme. ‘This program communities. The Age had reported that Indigenous The Australian Literary Review featured an extended has been going for two years -- not one problem. This Affairs Minister Jenny Macklin was under pressure piece, by UNSW academic Peter Shergold, which is a successful program,’ Senator Conroy told Radio to introduce ‘wet canteens’ in remote communities in raised concern over the role of academics in 2GB on May 10. A breakdown of data provided to The the Northern Territory, referring to a location where implementing social change. Shergold wrote that he Australian by Senator Conroy’s office revealed there alcohol can be served in a controlled environment. had ‘come across many academics who tell me that had been 64 complaints about installation issues Hudson warned that before Macklin ‘embarks on that they are working in areas of public policy of the utmost and another 22 about the set-top boxes themselves. path’, she would be wise to keep in mind the failures importance… yet shuffle uncomfortably when I ask Of these complaints, 45 had been resolved and 41 of the past. exactly what policy changes they would introduce to were still under investigation. The government could address the problems which they have so carefully not say what another 63 complaints were about, but A hit to Labor’s health analysed.’ confirmed to the paper that 21 of those were still The Australian reported that New Australian Medical under investigation. Association president Steve Hambleton had A HECS on wealthy students described Julia Gillard’s health reform agreement The hefty 20 per cent discount for students who can Subsidy schemers with the states in February as ‘a win for bureaucrats’ afford to pay their university fess upfront was to be The Australian reported that the most successful with limited prospects of improving the system. But slashed in time for the federal budget, The Australian contractor to the federal government’s $308 million Health Minister Nicola Roxon defended the service, reported. The move, which would halve the discount set-top box rollout is also making money through saying data on the hospitals was available only for for early payment of Higher Education Contribution Canberra’s solar credit and rebate programs. Hills the first two years of Labor’s term. She said many of Scheme fees, would free up hundreds of millions of Holdings, makers of the iconic Hills Hoist clothesline, the results of the Labor reforms were now becoming dollars. has won three government contracts to provide and clear. install the set-top boxes across regional NSW, South Sacking comment slammed Australia and Victoria through one of its units, Techlife. Innovation, Industry, Science and Research Minister At the same time, it also taps into federal solar-energy EDUCATION Kim Carr was quoted in The Australian as saying subsidy schemes through Hills Solar, which makes it was totally inappropriate for a Liberal senator to and distributes solar hot-water systems that can Billions backed-up use parliamentary privilege to call for the sacking generate tradeable, renewable energy certificates The Australian reported that almost $2 billion of the of an academic. Early in May, the Liberals’ Julian and a $1,000 rebate for householders. government’s schools building program is yet to McGauran told the Senate that the University be spent, more than two years after the end of the of Melbourne should sack its professorial fellow, global financial crisis which the $16.2bn stimulus plan psychiatrist Graham Burrows, who gave evidence HEALTH was designed to tackle. The Building the Education for the defence in the trial of Arthur Freeman, found Revolution program, which involved more than guilty of the murder of his daughter Darcey after he 10,000 school improvement projects, was scheduled threw her from Melbourne’s West Gate Bridge. Insurer NIBs claims in the bud to finish at the end of March but new figures released Australia’s fifth-largest health insurer, NIB, by the government revealed that almost 12 per cent of That does not compute undermined claims from the industry’s peak body that the funds, or $1.9bn, have yet to be spent. The Australian reported that the Gillard government a proposition to means-test the 30 per cent private would have to deploy about 40,000 computers a health insurance rebate would cause 1.6 million NAPLAN could become napalm month by the end of the year to give every secondary people to drop their cover, The Australian reported. A world-renowned education expert warned that school student a computer. The Education Department NIB, which insures nearly 700,000 Australians, told Australia’s national literacy and numeracy tests, said that 434,060 computers were installed by the Australian Stock Exchange that its own estimate NAPLAN, could seriously damage the education March, leaving 353,473 to go. The government wants produced ‘far less significant’ numbers. system and lead to similar mistakes made in the all students in Years 9 to 12 to have a computer by US. Stanford University’s Linda Darling-Hammond December 31. This would hit its target of a 1:1 ratio. Coffee fights cancer was reported in The Australian as saying that the Julia Gillard and Education Department officials The Australian reported on a study suggesting that multiple-choice NAPLAN system, which rewards have not wavered from the year-end deadline despite men who regularly drink coffee appear to have a lower schools for good results, was simplistic and not nearly opposition claims that the computers-in-schools risk of developing prostate cancer. Consuming six or as effective in measuring students’ capabilities as program faces delays. Department Secretary Lisa

17 4 May to 6 June 2011

Paul told a recent Senate hearing that the deadline school systems have been silent. But of the education Destructive investment would be met. But the opposition is concerned departments, only Tasmania and the territories have The federal government’s $74 billion Future Fund aboutthe time it has taken to get the computers into lodged submissions and none is publicly available. is investing Australian taxpayers’ money in foreign students’ hands. The nation’s biggest school system, run by the NSW companies that make components for nuclear education department, intends to make a submission weapons. Records obtained under Freedom of Forget the bush but is considering its position after a new government Information laws, and published in The Age, showed The Grattan Institute’s report Investing in Regions: was elected in March. The Victorian government the fund had $135.4 million invested in 15 companies Making a Difference suggested that extra spending on asked for, and was granted, an extension to allow it to involved in the design, production and maintenance of universities and regional campuses in smaller cities consult more widely. nuclear weapons for the United States, Britain, France should be redirected to help students study at larger and India. campuses in the capital cities and the largest regional satellite and coastal cities. Abuse review DEFENCE The Department of Defence has advertised for TAFE on their toes submissions to an external legal review of allegations The Australian Education Union told The Australian Projects in retreat of sexual and other forms of abuse in the armed that any merger of Canberra’s TAFE and university The Financial Review reported that the Gillard forces, making specific reference, but not limiting must preserve the distinctiveness of vocational government’s $275 billion-plus Defence White Paper itself, to the ‘Skype incident’ at the Royal Military training relative to higher education. In April, the ACT weapons spending plan appeared in tatters. The White College, Duntroon. government commissioned Denise Bradley, former Paper was unveiled by former prime minister Kevin Vice-Chancellor of the University of South Australia, Rudd in 2009, amid much fanfare, and contained a Cut and run to recommend how that Canberra Institute of TAFE wish-list of new weaponry, including submarines, Foreign editor for The Australian, Greg Sheridan, and the University of Canberra could best collaborate, ships and fighters considered vital to Australia’s argued that Australia should pull its troops out of including a possible merger. A marriage was national security over the next two decades. Just Afghanistan. He said that ‘Australian politicians have recommended in February by former Commonwealth two years into the 21-year plan, spending on planned been on autopilot over the Taliban and Pakistan. He Departmental Secretary Allan Hawke, who reviewed Defence projects is falling further and further behind, claimed that Pakistan was giving covert support to the the ACT public service. His report was endorsed by and an extra $4.3 billion was clawed back by Taliban, and that we could not win the conflict. the government. Hawke suggested a merger along government in 2011-12. The Financial Review said this the lines of a dual-sector university, specifically had done little to dispel the air of gloom in an industry Vale mentioning Swinburne University of Technology as an starved of work. Sergeant Brett Wood, 2nd Commando Regiment, example. was killed by an Improvised Explosive Device during White paper flag a dismounted patrol on 23 May. Lance Corporal Apply within The government has deferred more than $14bn in Andrew Jones, 9th Force Support Battalion, was The Tertiary Education Quality Standards Agency Defence spending since the White Paper was released killed in a small-arms incident on 30 May. Lieutenant had separate advertisements for the chair of the in 2009. The Financial Review reported that Defence Marcus Case, 6th Aviation Regiment, died of wounds Higher Education Standards Panel and the agency’s Department analysts are concerned at the lack of sustained in a helicopter crash on 30 May. Total five commissioners appearing in The Weekend action by the government in meeting the paper’s Australian Defence Force casualties in Afghanistan is Australian. The TEQSA legislation is set to pass proposals. 28 killed, 181 wounded. parliament, following the Government’s agreement to a range of amendments proposed by a Senate Portfolio problems Air warfare conflict committee. The Agency will undertake regulatory The Australian reported that ‘bad blood’ existed The Australian claims that bitter infighting has erupted and quality assurance functions now handled by between senior members of the Defence Force and between government and industry over the nation’s nine state and national bodies. The standards panel its Minister, Stephen Smith. The friction is related to largest defence project, the $8 billion plan to build is charged with developing mandatory requirements delays in replacing Defence chief Angus Houston, the navy’s new Air Warfare Destroyers. The project is for higher education providers, although universities service chiefs and other key military leaders who’s two years late and hundreds of millions of dollars over will continue to accredit their own courses. Both role will expire on 4 July. budget. The government was forced to admit publicly advertisements call for candidates with higher that the flagship project was badly behind schedule, education experience and a range of consultation and Power chief after it became aware that The Australian had the policy skills. The Australian reported that Lieutenant-General story and was planning to publish it. Brian Ashley Power was the new incumbent Chief La Trobe talent wanted of Joint Operations. The paper noted that he was Defence procurement pickle JoFisher executive search ran advertisements for the appointed by the outgoing Chief of the Defence Force, The Australian reported that the head of defence position of La Trobe University Vice-Chancellor and Angus Houston, and not Defence Minister Stephen acquisition for the Gillard government had admitted President to replace Professor Paul Johnson. Smith. A Chief of Joint Operations is responsible that the nation’s largest defence project, the plan to for the planning and execution of Australian-led build three new Air Warfare Destroyers, is a ‘crisis’ Funding review debate muted joint, potentially joint, combined and multi-national that threatens the reputation of Defence and everyone The Australian reported that six months before the operations, such as current operations in Afghanistan. involved in the $8 billion plan. The comments, made federal government’s review of school funding is by Defence Materiel Organisation head Stephen due to report, the states running the nation’s biggest Navy story just scuttlebutt Gumley to defence industry colleagues in late April, school systems are yet to make a contribution to the The Royal Australian Navy set out to boost morale directly contradict the Gillard government’s public debate. More than halfway through the review, headed with a report in the Navy News of its daring exploits spin, which sought to portray the AWD problems by businessman David Gonski, and two months on the high seas through a gripping account of war as being ‘not unusual’ for such a complex naval after public submissions closed, the state education games involving the Collins-class submarine HMAS construction. The Australian learnt that Gumley was departments responsible for educating more than Dechaineux. However, The Australian revealed that the only fully briefed on April 20 that the AWD project was 70 per cent of students nationally are yet to publicly account turned out to be fiction, as the sub was pulled in deep trouble, running two years late. enter the debate. While Catholic and independent from action immediately before the commencement school organisations have been running an active and of the games. vocal campaign on behalf of their schools, the public

18 LETTER FROM CANBERRA

White Paper up in the clouds noted that the latest push to introduce sharia law in The Financial Review reported that a United States SOCIETY Australia had triggered an unlikely alliance by two Army colonel, John Angevine, delivered the following professors of law. Civil libertarian Spencer Zifcak warning to the Gillard government – the 2009 Defence No room for charity and constitutional monarchist David Flint are from White paper’s lopsided emphasis on buying expensive The Budget revealed that a new regulator would be opposing sides of the political spectrum. But they are weapons doesn’t correspond with ‘the realities of established to deal with the not-for-profit sector. The united by a deceptively reasonable push for a form Australia’s security situation’. Angevine says the White Financial Review said the one of its jobs would be to of sharia law in Australia. Merritt argued that these Paper ‘prepares for contingencies that are the least determine whether commercial operations run by academics recognise what is at stake. He wrote that ‘if likely to happen and dedicates large portions of the a charity are sufficiently connected to a charitable this push succeeds, it could undermine the centuries- nation’s limited resources to missions that exceed the purpose. If not, those operations will be taxed. About old legal settlement that led to the Enlightenment and Australian Defence Force’s capability’. 40 per cent of Australia’s hospitals and 60 per cent the rise of Western secular society’. of aged-care facilities are operated by organisations affiliated with church groups, and are therefore tax- Murray Darling model exempt. While there will be no change to the tax New scientific modelling conducted by the Murray- treatment of hospitals and aged-care homes, the Darling Basin Authority, and published in The FOREIGN AFFAIRS future of incidental businesses run inside their walls Australian, determined that less than 3,000 gigalitres is not clear. of water would need to be returned to the environment to ensure the survival of the river system. Outgoing Israel boycott back-down Rich list MDBA chief executive Rob Freeman and executive The Herald Sun reported that the Green inner-western In the 28-year history of the BRW Rich 200, Gina director Fraser MacLeod told a Senate estimates Sydney council of Marrickville had abandoned its Rinehart became the first woman to claim the top hearing in Canberra that the authority had adopted proposed boycott of Israel. In Miranda Devine’s spot. Her fortune grew to $10.3 billion from $4.75 a radically different scientific approach, to determine Herald Sun column it was argued that the backdown billion last year as she became the countries biggest how much water needed to be returned to the was a faithful reflection of ‘how federal politics is beneficiary of the strong rise in coal and iron ore environment. splintering’. prices. A different milk war China man Lazarus Rises The Australian said that dairy farmers were deeply The Australian reported that Kevin Rudd had returned John Howard’s autobiography, Lazarus Rising, concerned about the impact of the carbon tax as to leading policy on Beijing, seizing leadership of surpassed 75,000 sales to become the country’s they face the impact of a high dollar hampering their Australia’s $100 billion commercial relationship biggest selling political memoir. The Australian said competitiveness on export markets and pressure with China. The Foreign Mnister exhorted Australian that the previous bestseller was Bob Hawke’s 1994 from the Coles-Woolworths price stand-off. Wesley businesses outside the resources sector to step up book, The Hawke Memoirs, selling 75,000 copies. Judd, the chairman of the Australian Dairy Industry to the next wave of growth, as the country charges Council, told The Australian that he was worried about towards being the world’s largest economy. Rudd Another political memoir the impact of higher power costs and any changes in is pushing for Australian businesses to deepen Margaret Simons awarded the Douglas Stewart fuel costs sparked by the carbon pricing regime. and broaden their links with China, as the country Prize for Non-Fiction for Malcom Fraser: The Political overhauls its business model to focus on domestic Memoirs at the New South Wales Premier’s Literary Native title reversal of proof consumption and services. Awards. Malcom Fraser’s autobiography also took In what was described by The Australian as a out the title of Book of the Year, with judges calling landmark speech, Paul Keating called for the onus To the moon and back it ‘an engaging work that demonstrates how literary of proof in the Native Title Act to be reversed so The Herald Sun marked a milestone for Kevin Rudd, craft can transcend the usual limitations of political that Aboriginal claimants are no longer required to who reached 384,000km in overseas air travel since autobiography’. establish a continuous association with their land. becoming Foreign Minister - the equivalent of flying Instead, the former prime minister said native title to the moon. The former prime minister visited 43 Silly security objectors should be required to prove a continuous countries in an eight-month odyssey in which he has The Australian reported that 76-year-old Barry attachment no longer exists. spent four days in every 10 overseas. Cohen, a Hawke government minister for four years and an MP for 21, was informed by Canberra’s French connection parliamentary security that could not take his walking The Financial Review reported that a career stick into the Speaker’s Gallery. When the Letter from diplomat would replace David Ritchie as Australia’s Canberra editor was at federal parliament to watch ambassador to France. Department of Foreign Affairs the announcement of the Budget, all members of the Come to Manchester and Trade deputy secretary Ric Wells would take up public gallery had to take off their shoes and belts the post by the end of the year. and walk though a metal detector. It is poignant and in early October perhaps a telling sign of the times that these excessive Vegemite an acquired taste security measures occur literally in the house of Accompany a regular visitor to the Conservative The Guardian reported that the Danish government our democratically elected representatives. Such and Labor annual conferences and observe had banned products fortified with added vitamins in nonsense should be left to North Korea. for yourself how alongside the politics, the 2004, and was now enforcing the ban on Vegemite. clever public policy minds of Britain, Europe Kraft Foods corporate affairs manager Greta Cooper Sharia law and elsewhere, are exposed and challenged in said the company had not been notified about a The Australian reported that the nation’s peak a range of 500 events, large and small. Bring Vegemite ban and was investigating the matter. Muslim group was using the Gillard government’s some ideas back home. She said that 98 per cent of Vegemite sales were in re-embracing of multiculturalism to push for the Australia, with London, the US and Asia making up the introduction of sharia in Australia. However, the largest expatriate markets. Australian Federation of Islamic Councils told the Call Alistair Urquhart paper that it would advocate a more moderate variety 03 9654 1300 of Islamic law that fits with Australian values. The Legal Affairs Editor at The Australian, Chris Merritt,

19 LETTERLETTER FROM FROM CANBERRA CANBERRA Saving youSaving time. you Three time. years Three on. years After on.Letter After from Letter Melbourne, from Melbourne, established established 1994. 1994. A monthly A newslettermonthly newsletter distilling distilling public policy public and policy government and government decisions decisions which affect which business affect businessopportunities opportunities in Australia in Australia and beyond. and beyond.

Post-BudgetPost-Budget and Gambling and Gambling Edition Edition4 May to4 May6 June to 62011 June Issue 2011 34 Issue 34

EditorialEditorial Gambling Gambling all around. all around. oker machinesoker machineshave featured have infeatured politics inin politicsrecent months.in recent Historically, months. Historically, regulating regulatinggambling gamblingand imposing and imposinggambling gamblingtaxes has taxesbeen hasa state been a state P responsibility.P responsibility. Indeed along Indeed with along property, with labour property, and labour motor andvehicles, motor it vehicles, is it is one of the onefew ofsignificant the few significant sources of sourcesrevenue ofavailable revenue to available the states. to theThe states. Courts The Courts have underminedhave undermined the capacity the of capacity the states of theto imposestates totaxes impose since taxes the endsince of the end of World WarWorld 2. War 2.

However, asHowever, a result as of athe result pressure of the applied pressure by appliedan Independent by an Independent Tasmanian Tasmanian MP MP Andrew Wilkie,Andrew the Wilkie, Federal the Government Federal Government has concluded has concludedit has the constitutionalit has the constitutional power to imposepower toitself impose in the itself area in of the regulating area of regulatingpoker machines. poker machines.

Ironically, givenIronically, it is stategiven Liberalit is state governments Liberal governments which have which been have most been vocal most in vocal in their oppositiontheir oppositionto the Federal to the government’s Federal government’s plan to impose plan toself-determined impose self-determined mandatory,mandatory, as distinct as from distinct voluntary, from voluntary,gambling gamblinglimits on limitspoker onmachine poker machine players, theplayers, Howard the government Howard government may well havemay welllaid thehave foundations laid the foundations for Julia for Julia Gillard’s legalGillard’s claim. legal By usingclaim. theBy corporationsusing the corporations power and power the external and the affairs external affairs power to enactpower legislation to enact legislationsuch as Workchoices, such as Workchoices, the Howard the government Howard government drove drove the last nailthe into last the nail coffin into theof states’coffin rights.of states’ rights.

Putting principlePutting to principle one side, to includingone side, theincluding question the ofquestion the extent of theto whichextent ato which a governmentgovernment ought to capitulate ought to capitulateto the demands to the ofdemands one of 150 of one federal of 150 MPs, federal the MPs, the politics of thepolitics issue of are the interesting. issue are interesting.

Clearly whileClearly the publicwhile thedoes public not feel does strongly not feel about strongly many about forms many of gambling, forms of gambling, they do notthey like dopoker not machines.like poker machines.National Party National Senator Party Barnaby Senator Joyce Barnaby reflected Joyce reflected communitycommunity sentiment sentimentwhen he said when that he if said the industrythat if the did industry not do didsomething not do something to to rein in gamblingrein in ongambling poker machines, on poker machines,politicians politicianswould have would to. have to.

State governmentsState governments are not credible are not on credible this issue on becausethis issue there because is a widely there is held a widely held view that itview is Treasury that it is departments Treasury departments which really which dictate really poker dictate machine poker policy machine policy in most states.in most states.

That leavesThat the leaves clubs andthe clubsthe pubs, and thewhich pubs, point which to the point jobs to and the communityjobs and community benefits benefitswhich flow which from flowpoker from machines poker andmachines which andare whichwell organised. are well organised.

It will be interestingIt will be interesting to see whether, to see for whether, voters in for electorates voters in electorates such as Corangamite such as Corangamite in Victoria andin Victoria those inand the those western in the suburbs western of suburbs Sydney, ofthese Sydney, benefits these outweighbenefits outweigh their disapprovaltheir disapproval of this form of of this gambling. form of gambling.

Whatever Whateverthe outcome, the outcome,for Julia Gillardfor Julia the Gillard die is thecast, die courtesy is cast, ofcourtesy Andrew of Andrew Wilkie. Wilkie.

But it’s notBut just it’s poker not justmachines. poker machines.Nor taking Nor on thetaking tobacco on the companies. tobacco companies.

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