LETTERSaving you time. A monthly newsletter distilling FROM public policy and government decisions CANBERRA which affect business opportunities in Australia and beyond.

5 July to 7 August 2009 Issue No. 16: Post Ute-Gate/GFC Edition (Hopefully) Letter From Canberra is a sister publication of Letter From Melbourne, which was established 16 years ago

INSIDE Australian Fair Broadband Rudd guilty ‘The very Throwing the The difference Emissions Health system Pay Commission developments of Camelcide strange Godwin book at the between trading: suggested freezes wages Grech’ Productivity Iraq and vote close, changes. A big Commission Afghanistan agreement far job.

NEXT MONTH Mulesings Australian ships 5 July to 7 August 2009

14 Collins Street Melbourne, 3000 Victoria, Australia P 03 9654 1300 EDITORIAL F 03 9654 1165 [email protected] Q&A is an ABC TV weekly event, vintage on Thursday 6 August, when Deputy prime minister Julia Gillard and www.letterfromcanberra.com.au Opposition leader Malcolm Turnbull were on the panel with the whole audience, and three of the six person panel, being under 25. As the two leaders debated the rights and wrongs of Ute-Gate on the head of a pin, NextGen said ‘Move On’, that Ute-Gate was distracting from bigger issues such as education and health and almost everything else. Editor Alistair Urquhart Associate Editor Rick Brown The International Student Crisis, ISC, linked as it is with immigration and international trade, is an awakening Sub-Editor Hamish Brooks difficulty for Australia, the gravity still to flow through. Copy-Editor Robyn Whiteley Subscription Manager Andrea Hodgkinson Design Ray Zhang Camels hit the headlines for a day or so in the Australian press and became a news/mockstory/spoof in the United States media, when Prime Minister Rudd featured. When discussing how to get rid of them/perhaps shoot them from the air, a commentator asked, ‘Do they have an airforce down there, (in Australia)’. Away from that item, most Australians would not know that we have one million camels in Australia, most of them not in WELCOME zoos, and that apart from the environmental issue, they perhaps have the potential to be a greater resource for Letter from Canberra is focused on the the benefit of regional Australia and others. interface of business and government, with enough politics and bureaucracy to understand Parliament starts again on Tuesday. Note our new special subscription to Letter From Canberra package the, or any, relevant business opportunities. on the back page. We have been publishing Letter from Canberra’s sister publication Letter From Melbourne, a public policy digest, for 16 years. Commencing with the Kennett era corporatisation and privatisation of energy and other utilities and the other fresh broom approach of a new About the Editor government, where we focused on business ALISTAIR URQUHART opportunities. Increasingly, we included matters in the other states and adopted a more federal Alistair Urquhart graduated from the Australian National University in Canberra, focus. in Law, History and Politics, was admitted as a barrister and solicitor of the Supreme Court of Victoria, and remains a (non-practicing) member of the Law The recent change in federal government opens Institute of Victoria. Before that, he graduated from high school in Bethesda, up new business opportunities, particularly the government’s new emphasis on climate change, Maryland, and had many opportunities to become aware of the workings of carbon trading, water, industrial relations, Washington DC. For 30 years, he listened every Sunday evening to the late education, information technology and the Alistair Cooke and his Letter From America. traditional sectors. His early career was mostly in the coal industry, where he became involved For many years, our other publications have with energy, environmental and water issues, and later in the SME finance included the well-known federal government sector. Departmental Wall Chart. (NOW AVAILABLE at 03 96541300 or letterfrommelbourne.com.au)) We conduct seminars and informal luncheons and His public affairs firm works with many engineering and information meetings in Melbourne, Canberra and Sydney. technology firms, other professional association and industry groups, on a wide range of issues, in Victoria, Canberra and overseas. Most people have their clipping services and a range of email products/newsletters/etc. At the Urquhart visits Canberra regularly. He may hold the record for miles rowed on end of the month, Letter From Canberra gives a Canberra’s Lake Burley Griffin. 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 at a coffee shop in New York. And then give it to a friend who is interested in Australia. INDEX In approximate order of interest over the past month Published by A.B Urquhart & Company Pty Ltd trading as Affairs of State. Disclaimer: Material in this publication is general FOREIGN AFFAIRS 3 JUSTICE 17 comment and not intended as advice on any particular matter. Professional advice should be sought before action is taken. GOVERNANCE 4 MANUFACTURING 17 Material is complied from various sources including newspaper INDUSTRIAL RELATIONS & EMPLOYMENT 6 EDUCATION 17 articles, press releases, government publications, Hansard, trade journals, etc. © This newsletter is copyright. No part may be CLIMATE CHANGE, ENVIRONMENT, ENERGY 6 AGRICULTURE & WATER 18 reproduced, stored\ in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, HEALTH 8 IMMIGRATION 18 photocopying, recording or otherwise), without the prior written BROADBAND & ICT 13 SOCIETY 18 permission from the publisher. Affairs of State respects your privacy. 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Can’t take a trick International cultivation Foreign affairs Hugh Borrowman– the man Kevin Rudd barred Deputy Prime Minister Julia Gillard is planning to from a top diplomatic post in Germany – has now visit India in September in the latest of her journeys Vale been forced to pull out the ambassador’s role he to cultivate relationships with Australia’s allies and Australian trade commissioner Craig Senger was was appointed to in Sweden because his disabled trading partners. killed in the Jakarta hotel bombings. It is the first time adult son could not maintain his status as a disability Hmmm an Australian diplomat has been killed by a terrorist support pensioner had he taken the Sweden post. A Taiwanese born businessmen, Kung Chin Yuan, bomb and the second one to be killed on duty. (The If Borrowman’s appointment to Germany had gone with close ties to his country’s disgraced former other was executed in Singapore circa 1941 and his ahead, a treaty between the two countries would president, Chen Shuibian, paid for Kevin Rudd to nephew Charles Bowden works with Austrade today). have ensured his son kept his entitlements. Australia travel business class to London in 2005 and has Recruitment specialist Nathan Verity was also killed, has no equivalent social security arrangements with donated $220,000 to the Australian Labor Party, The along with another Australian. All in all, nine people Sweden, The Age reported. reported. Yuan was appointed a Brisbane City were killed and more than 50 injured. Age Saint Kevin Council ambassador by former Labor Lord Mayor Stern approach The Age reported that people smuggling, climate Jim Soorley in October 2000. An Australian executive of mining company Rio Tinto change and the international recession dominated Oh dear, Kadeer is being held in China on suspicion of being a spy Kevin Rudd’s week-long overseas trip which began Unofficial leader of the Uighurs, Rebiya Kadeer, and stealing state secrets. Foreign Affairs Minister with talks in Malaysia in early July. He then went will use her visit to Australia in August to urge the Stephen Smith confirmed that the Australian citizen, on to Berlin to press Australia’s claims to host the Government to take a stand over China’s violent Stern Hu, was one of four Rio Tinto employees being World Cup with soccer chief Sepp Blatter. The main repression in her homeland. Kadeer will be here for held by Chinese officials with Beijing saying he had purpose of his trip was to attend a major economies the launch at the Melbourne International Film Festival caused ‘huge loss’ to China’s economic interests by climate change forum in Italy. The meeting discussed of the documentary about her life and her people’s stealing state secrets. Chinalco launched an attack greenhouse gas emissions targets, the transfer of struggle. Like the Tibetans, the Uighurs say the on Rio’s integrity as the spy allegations threatened technology and financial assistance for developing Chinese government is committing cultural genocide to derail the political and perhaps even the economic countries to help them reduce emissions. While in by banning the teaching of Uighur in schools, The Age relationship between the two countries, The Age Italy Rudd met the Pope for half-an-hour, and pushed reported. The Chinese consulate in Melbourne asked reported. Kevin Rudd said the Government would the cause of Australia’s Mary McKillop for sainthood. Festival director Richard Moore not to screen the 60- adopt a measured approach in dealing with the He gave the Pope a copy of the Australian Parliament’s minute documentary, a request that was declined. Chinese government over the issue. As Stern Hu motion of apology to the stolen generations and six Chinese hackers attacked the Melbourne International continued to be held in a Chinese prison, the pressure bottles of De Bortoli Noble One desert wine in a small Film Festival website in the campaign against the on Foreign Minister Stephen Smith and Kevin wooden crate. A cover story in a recent issue of Time screening of the aforementioned documentary. It Rudd to intervene directly with their counterparts magazine, titled ‘Mr World’, describes Rudd as the was hacked by a 24-year-old Chinese man with no increased and might become irresistible according consummate globalised citizen who makes a point of apparent connection to his Government. to The Australian’s foreign editor Greg Sheridan. The reaching out to those in other nations who share his Government had a series of meetings with China’s sense of international community. 5000 Fischers acting ambassador, Zuozhang Liu. On the opinion Tim Fischer, Australia’s Ambassador to the Holy See Releases a lot of paper, does our PM pages of The Australian, Glen Milne wrote Kevin and former coalition deputy prime minister, defended Prime Minister Kevin Rudd released a paper on Rudd’s failure to manage China will thwart his Kevin Rudd’s right to make representations for Mary the impact of climate change at the Pacific Island vain security council ambitions. Beijing’s envoy to McKillop to be made a saint, The Age reported. Leaders Forum in Cairns. The paper warned of Canberra, Zhang Junsai, says the case of Stern Hu is dire consequences unless the Pacific’s two big a one-off incident that has not hurt bilateral relations Hmmm development partners boost efforts to help vulnerable or his country’s reputation. ‘Competent authorities Two Old Geelong Grammarian classmates and nations adapt to global warming. Meanwhile, Australia in China will handle this case in accordance with property industry figures Angus Reed and Matt and New Zealand have vowed to step up assistance Chinese law, and the two governments will deal with Joyce are among four Australians facing a string of for Pacific countries to ease the impact of the global related issues on the basis of the bilateral consular charges, including fraud, over a property deal gone credit crisis, releasing a joint report outlining a bleak agreement,’ he said. bad in Dubai. Joyce and fellow Australian executive economic outlook for the region, the Financial Review Marcus Lee have been in prison for six months. reported. Reed and an Australian lawyer, Anthony Brearley, are believed to have left Dubai before the police investigation, thereby avoiding jail. Until his arrest in

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January, Joyce had been managing director and Lee car dealer and mate John Grant, because his terms Senator Eric Abetz, who led the Senate questioning a senior executive of Dubai Waterfront, a subsidiary of of reference do not allow it. McPhee’s narrow remit of Grech before the verity of the e-mail came to the state owned Nahkeel Corporation. It is the world’s confines him to investigating actual representations light, and who had meetings with Grech before the biggest waterfront development, The Age reported. made to Treasury official Godwin Grech on behalf of questioning, accepted responsibility for being duped car dealers, not invented ones. See below. by the Treasury official. Rein over them Days after returning from climbing of Mt Kilimanjaro, The very strange Godwin Grech Road rage Therese Rein was announced as the new patron of Godwin Grech has admitted he created the fake Treasurer Wayne Swan froze the funds in the $850m a major UNICEF Australia campaign to combat the e-mail at the heart of the OzCar affair and claimed OzCar finance scheme pending an independent high rate of maternal and child death in developing that he passed the contents of that e-mail to Malcolm review of the plan following the scandal over the countries, especially in the Pacific region. Turnbull under enormous pressure. Grech said he fake treasury e-mail, frustrating car dealers anxious still believed there had been an original e-mail from to secure a help. Car companies must wait for the A representative of her Majesty the Queen Kevin Rudd’s office, urging help for Ipswich car official review before funds can be released to meet British Prime Minister Gordon Brown announced dealer and Labor donor John Grant, but conceded the Government’s promise from last December to a former leader of the House of Lords, Baroness it could not be found. Grech said he cooperated with fill the gap left by an exodus of commercial finance. Valerie Amos, would become the country’s High the Opposition to save the jobs of 2,000 people by The delay has angered car dealers who have been Commissioner to Australia. She will replace Helen seeking their support to pass the car finance bill in forced to draw on bank overdrafts or savings to stay Liddell and start in the post in October. the Senate, The Australian reported. The Age reported in business, the Financial Review reported. that Malcolm Turnbull cast himself as a victim of an Always on a war footing Governance outlandish sting by Grech in the OzCar affair after an The Coalition shifted onto a war footing amid fears the Auditor-General’s report exonerated Kevin Rudd and Get out! Government would call an early poll to take advantage Wayne Swan from giving special treatment to Grant. Halfway through the Rudd government political term of its new popularity among the opposition’s blue- Auditor-General Ian McPhee found that Swan spoke there have been 107 suspensions from the House collar voters following the success of its $50b briefly with Grant, at the request of Labor backbencher of Representatives, which is on track to challenge economic stimulus measures. The Liberal’s federal Bernie Ripoll. ‘Treasury was aware that the dealer the previous parliament’s record of 223. Official director, Brian Loughnane, said the party was was acquainted with the Prime Minister, but there is figures show the main offenders are opposition prepared for a double dissolution, citing Labor’s no evidence that the Prime Minister was aware of frontbenchers Peter Dutton and Joe Hockey, who ‘reckless spending’ as a cover for their ‘lack of a clear the representation, or that the Treasurer or his office have been sent from the chamber nine times each economic strategy’. applied pressure on Treasury,’ he found. McPhee – under the one hour ‘sin bin’ rule – since the 2007 also addressed the fact that updates of Grant’s election. Liberal MP Wilson Tuckey is on course for A double page advertisement and more case had been copied to the Treasurer on his home the biggest record of them all having been sent out On Saturday, July 25, a 6000-word essay by Prime fax, apparently suggesting Grant received special 14 times, including one three-day suspension and Minister Kevin Rudd was published in the Insight attention. But the Auditor-General said Swan’s office section of . It claimed that over the next two seven-day expulsions, the Herald Sun reported. The Age had sought to have the updates stopped. decade, Australians will have to work harder and Two trucks smarter. He repeated his point about the economic The Coalition’s ‘debt truck’ and Labor’s ‘jobs truck’ In The Age, Michelle Grattan wrote that Turnbull downturn in that the roots of the crisis lie in the vied for attention in early July. Opposition leader presented a solid case to show how he was duped preceding decade of excess. In that decade the world Malcolm Turnbull said the truck was to remind by the very strange Godwin Grech. Whether this enjoyed an extraordinary boom. The essay picked voters of $315b in debt the Government was running will be enough to rescue Turnbull’s credibility after a path down the middle of the road – most people up. Labor’s jobs truck reminds voters that 70 per cent this extraordinary affair is quite another matter. He (voters) would agree with the facts and sentiment. of government debt is being spent on infrastructure. has taken such a battering that he is likely to have The only distraction in the earnest, blow-dried, well- It circled the streets around Turnbull’s Sydney suffered deep, permanent wounds. An editorial in the dressed countenance of his full-page centre spread electorate office, in well-heeled Edgecliff, the Herald same paper said Malcolm Turnbull has to restore photo was the alarming thickness of his pink sausage Sun reported. public faith in him, or he is gone. fingers. Meanwhile, the mystery of who faked the e-mail at In his 3,000 word response published in the same Responsible for being duped the heart of the ute affair is unlikely to be resolved, section the following week, Malcolm Turnbull wrote The Government gained ground in its pursuit of The Australian reported. Auditor-General Ian McPhee that, as ever, Rudd is more interested in the next day’s Turnbull by winning support for a Senate inquiry into will not go into the provenance of the fake e-mail, headlines then bedding down hard policy choices. In the OzCar affair, amid new suggestions of Coalition which suggested Kevin Rudd had Wayne Swan help the essay, Turnbull condemned Rudd as a ‘political disunity, the Financial Review reported. Liberal

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fashionista’ with an ‘Orwellian disregard for the truth’, least three other Liberal seats at risk of falling to Labor. not climb Uluru, a sacred site. The Age reported that who will leave Australia with ‘debt as far as the eye The redistribution would also allow Labor to tighten its Prime Minister Kevin Rudd poured cold water on a can see’. grip on at least three of its own marginals, including plan to stop people climbing Uluru. the seat of Moreton, traditionally held by whichever A lot on his mind Any mail? party is in government. Dutton ousted Labor’s Cheryl The Financial Review reported that Prime Minister Australia Post is seeking advice on increasing the Kernot from Dixon in 2001. The Liberal-National Kevin Rudd has 123 recommendations for health price of a basic postage stamp, less than a year party accused the Australian Electoral Commission of reform on his mind and by Christmas he will have a after a similar increase. The decision to increase the favouring Labor. The AEC regularly reviews electoral mountain of other detailed policy suggestions to sort stamp price form 55 cents to 60 cents in early 2010 boundaries to take account of population growth and through as his big-ticket reviews continue coming is subject to approval by the Australian Competition ensure all seats have a similar number of electors, home to roost. One important document, due at the and Consumer Commission. Australia Post said rapid The Australian reported. In the same paper, Peter van end of October, is the final report of the Australian growth in areas such as western Sydney, south-east Onselen wrote that the draft redistribution of federal Law Reform Commission’s Review of secrecy Melbourne, south-east Queensland and parts of seats in Queensland by the Australian Electoral provisions and federal laws. Officially, the report Western Australia would add 2.5 million new delivery Commission is a disaster for the coalition. will go to the Attorney-General, Robert Maclelland, points over the next decade, The Age reported. who commissioned it on August 5 last year, but of A suggestion In a related story, the Australian Competition and course nothing will be done unless Rudd wants it. A Pope Benedict XVI has proposed a new world political Consumer Commission issued its fourth report discussion paper containing 66 proposals for changes authority ‘with real teeth’, possibly in place of the assessing if Australia Post’s services were being to legislation, regulation and practice was released United Nations, to enforce an ethical financial order cross-subsidised in the 2007-08 financial year. The on June 18. Anyone wanting to have a say had to and end the global financial crisis. Calling for more report’s findings were consistent with the findings do so by the first week of August. The discussion aid, a bigger role for trade unions and an economic in all the ACCC’s previous reports. Australia Post’s paper identified 507 existing secrecy provisions in system aimed at the common good as well as profit, logistic services continue to be cross-subsidised, 175 pieces of legislation ranging across such diverse the Pope said only a moral market could end the crisis and the source of that cross subsidy appears to be areas as tax, social security and national security, and solve world poverty, The Age reported. Australia Post’s competitive services, rather than its including 358 distinct secrecy offences carrying a monopoly services, www.accc.gov.au. Viva la footbal wide range of criminal penalties. As part of his overseas trip in early July, accompanied Choice Cheques and balances by Football Federation Australia chairman Frank Consumer advocate Choice has called for an official The Australian newspaper believes it’s time to limit Lowy and chief executive Ben Buckley, Kevin Rudd timeline for actions to be taken on the issues of the power of lobbyists because confidence in the backed Australia’s push to host the World Cup in either restrictive covenants and planning laws, the main political process must be protected. The paper’s 2018 or 2022, The Age reported. areas identified in the Australian Competition and editorial notes the Government’s own code of conduct Consumer Commission report on rising food prices. Green light says that lobbying is a legitimate activity and an Critics claim the Government has taken too long to act The Government has given the green light to an important part of the democratic process. Lobbyists on key reforms in relation to boosting competition in expansion of the uranium industry, approving the can help individuals and organisations communicate the grocery sector, The Age reported. Four Mile mine in South Australia. The new mine is their views on matters of public interest to the 550 kilometres north of Adelaide. It will be Australia’s Do they allow Liberal voters into these clubs? government and… in doing so, improve outcomes fourth uranium mine and has reignited interest in the The ALP’s powerful national executive holds concerns for the individual and the community as a whole. local uranium sector. Environment Minister Peter the ACT branch is seeking to sell a nationally The lobbying code is intended to promote trust in Garrett spent a lot of time defending himself and his significant party asset to the left-wing Construction the integrity of the government process, but recent decision on the Four Mile mine, saying he entered Forestry Mining and Energy Union for half its market revelations suggest it is not working. It’s an industry Parliament to be a ‘team player’. In 1984, he stood value. The national executive has intervened to stall peopled by a class of former politicians, advisers, trade unsuccessfully for a Senate seat after co-founding the the sale of four highly profitable Canberra clubs to union officials and backroom operators who morph Nuclear Disarmament Party and is well known for his the CFMEU-owned Canberra Tradesmen’s Union Club into lobbyists and consultants and pull in the dollars. opposition to uranium mining. for between $20m and $25m after it received legal Registers of lobbyists are important in increasing advice that the clubs were last year valued at $50m. the transparency of the system – and we need one COAG agreed to a new national alert system The national executive believes the clubs, set up to in every state. The editorial concludes that lobbying Plans for a national alert system, which have been ‘render financial aid’ to the ALP, represent more than is part of the democratic process, but the problem stalled since 2003, were approved at the recent 50 per cent of the party’s national asset base, The for our society is the willingness of business to pay Council of Australian Governments meeting in Hobart. Australian reported. big dollars to achieve its ends. Our democracy is in The new system will be designed to send voice and rude health compared with most other nations: but text messages to all landlines and mobiles where the Conference call the preservation of that democracy requires leaders billing address is in the affected area. The main flaw The ALP National Conference was held at Sydney’s to be ethical and responsible enough to ensure there in the system is that it will not initially be able to send Darling Harbour from July 30 to August 1. Laura Tingle, are adequate checks and balances. Meanwhile, the messages or calls to mobiles based on their actual the Financial Review’s political editor, wrote that what Herald Sun reported that lobbyists will be banned physical location, although COAG agreed to fund is different this year about the conference is that, in from all government-appointed boards and positions research aimed at making this a possibility. addition to a lethargy brought about by incumbency in another move to make Queensland politics more and policy appeasement, the right faction’s absolute transparent. The move follows bans on success fees Something else you can’t do dominance of the conference numbers, and the and on Labor ministers attending political fund-raising A new draft management plan at Uluru-Kata Tjuta demise of the unions, have removed the last vestige events with businesses. National Park indicates the days of climbing Uluru of a suggestion the national conference is actually a are coming to an end. Opposition environment policymaking body for the ALP at all. Addressing the Finger on the Dutton spokesman Greg Hunt said the closure was 45th ALP National Conference, Kevin Rudd spelled Howard Government minister Peter Dutton, 39, faces environment Minister Peter Garrett’s idea. Uluru out a 10-year vision for the nation and reminded the possible political oblivion in an electoral redistribution is the world’s largest monolith and Australia’s most 400 delegates of the emptiness of being out of office. that will sharply improve Kevin Rudd’s re-election famous natural landmark, The Australian reported. The business campaign to major tax reform was dealt chances. The former assistant treasurer’s Brisbane The local Anangu people, who jointly manage the a blow at the conference following a resolution urging seat of Dickson would become notionally Labor under site with Parks Australia, now request that visitors do the Government to rule out changes that would lighten the proposed boundary changes, which also put at the overall burden on corporate Australia.

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warning that unions face penalties even if they take unlawful action when the body’s coercive powers Climate change, have been switched off. Any submission Struck a deal environment, energy to parliament or Unions will be appointed to Government boards, Got to aspire to something in this life government? committees and advisory bodies in a move that will Hopes for a significant climate treaty in Copenhagen increase their influence over national policies. The have been set back by developing country officials move follows increasing anger at their exclusion from refusing to sign on to a broader goal of cutting Do you want some some of the Rudd government’s key advisory bodies, global greenhouse gas emissions by mid-century. A clever people to including the Henry tax review. meeting in Rome of climate ministers and officials help you make your Written on his bib of the 17 member countries of the Major Economies submission? Employment Minister Mark Arbib, struggled in Forum, including Climate Change Minister Penny describing Kevin Rudd’s central ALP national Wong, failed to agree to aspirational targets to cut conference promise to create 50,000 new green emissions by 2050, The Age reported. The Financial Laurie Groom jobs, by saying they were just work experience and Review reported that the Government says it remains Strategic admitting he didn’t know the details of payments confident of a breakthrough at the Copenhagen Connections Group for unemployed youths. The Prime Minister outlined climate change conference in December, despite further evidence of the difficulty of achieving a global 0407 533 282 a target of 50,000 new ‘green jobs’ and training opportunities in bushland cleanups. Arbib said agreement to cut greenhouse emissions following that 10,000 places in the Green Corps were work the Group of Eight forum of wealthy nations in Italy. In experience and he did not know if participants would a sign of the tensions stifling progress, they failed to continue to be paid unemployment benefits while agree on what year to use as a baseline to measure clearing bushland and board walks. the cut. However, they did agree that green global Happy Birthday temperatures must not be allowed to rise more than Labor statesman and former prime minister Gough Verb, intransitive 2 degrees and developed countries should collectively Whitlam celebrated his 93rd birthday on July 11. The Rudd government is using its $650m jobs fund cut their emissions by 80 per cent by 2050. to pork barrel in Labor and marginal seats, rather Industrial RElations & than direct money to people who need it across the Running of the Turnbulls country, the Opposition says. The accusations came Malcolm Turnbull angered some senior Liberal employment after Employment Participation Minister Mark Arbib colleagues by publicly floating a new strategy for climate change despite failing to get shadow Like an ice block announced the Government would spend $1.7m on cabinet support for it. Coalition policy is to vote the The Australian Fair Pay Commission, in chairman Ian three projects in Tasmania. Malcolm Turnbull said Government’s emissions trading laws down in the Harper’s final ruling before his role is transferred to the way the spending was being rolled out showed Senate in August, but reconsidered its position Labor’s new Fair Work bureaucracy, decided to leave it was all about spin and photo opportunities and not about a second vote in November, when the final the pay of up to 1.3 million workers at $543.78 a about lifting the nation out of financial crisis, The stance of the US is clearer and considering that a week in a move opposed by Deputy Prime Minister Australian reported. second Senate rejection would provide a trigger for Julia Gillard. The same day as the announcement, Laws ahoy a double dissolution election. Turnbull asked shadow the Reserve Bank decided to leave Australia’s cash Julia Gillard has moved to extend the federal cabinet to consider the strategic shift of presenting rate unchanged at 3 per cent. The July 8 edition workplace laws to foreign-owned and ‘permit’ ships the opposition’s amendments when Parliament of The Australian’s Business Section published the operating off the Australian coast, in a victory for the resumes next month, saying business supported Reserve Bank’s statement, which noted the global maritime union. All employers had previously warned the idea and would deprive the government of the economy is stabilising after a sharp contraction in of extra costs associated with the move, the Maritime chance to mount an attack on the coalition as climate demand during the December and March quarters. Union of Australia said any impost would be very change spoilers. The shadow cabinet was divided, Buy Australian, breach international treaties modest, and the union would work with companies The Australian reported. Meanwhile, Opposition The public strongly supports the Government to limit the impact, The Australian reported. energy and resources spokesman, Ian McFarlane, buying Australian, even if it adds to the cost of What if they want to become Prime Minister predicted Australia would embrace nuclear power in goods and services, according to polling released one day? the not too distant future. He also argued that coal by manufacturing unions before the ALP National Kevin Rudd has urged young people to align their – which supplies about 80 per cent of electricity – Conference, where the ‘buy local’ row was a major job expectations with the tough times facing Australia. will become too costly to be competitive. Maverick issue. The Government is opposed to the union push Adding his voice to a new ‘job snobs’ debate, the Liberal backbencher Wilson Tuckey circulated an for Australian goods and services to enjoy a 20 per Prime Minister warned Generation Y the employment e-mail within the party accusing Malcolm Turnbull cent price differential in purchasing contracts, saying of arrogance in refusing to defend the Coalition’s outlook was grim, the Herald Sun reported. such a move could breach international treaties. opposition to the emissions trading scheme. The campaign, which has united right and left in Hmmm the union movement, is for a fair go policy for local The Fair Work Ombudsman will use new powers to Malcolm Turnbull succeeded in decisively shifting manufacturing from both government and the private investigate companies who are discriminating against the Coalition’s position on the emissions trading sector, The Age reported. workers, prompting employers to claim they risk legislation, promising support if the Government being treated as guilty until proved innocent. Fair Work accepts a number of changes. Shadow Cabinet Victory is hers Ombudsman, Nicholas Wilson, confirmed he would approved the shift in a phone linkup in late July Julia Gillard has won a resounding victory over unions, be able to investigate allegations of discrimination after a damaging week of internal Opposition with the ACTU accepting defeat on the Government’s in the workplace, and initiate legal proceedings on division. Turnbull’s nine-point amendment plan to changes to building industry regulations, The Age behalf of an employee, The Australian report. Labor’s Carbon Pollution Reduction Scheme was reported. She moved to allay employers concerns alive for less than half a day before Climate Change about changes to the building industry watchdog, Minister Penny Wong rejected it, saying Turnbull had produced a ‘shopping list’ and he must turn it into real amendments, The Age reported. Tony Abbott

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urged Liberal MPs to back the leadership of Malcolm and transport prices, the first study to analyse the Bet on the future Turnbull and asked them to pass Kevin Rudd’s scheme’s full cost to business, by RepuTex, reports. In The Age, Leon Gettler wrote that carbon credits emissions trading scheme in the Senate to avoid a About 42 per cent of these costs ($1.33b) is expected are mimicking subprime as a derivative full of risk. double dissolution election that they cannot win. The to be passed on to consumers and other businesses Carbon credits are designed to reduce greenhouse Australian’s political editor, Dennis Shanahan, wrote through higher prices, leaving a net bill of $544m gas emissions by selling carbon as futures or forward that the ETS will destroy Turnbull’s leadership unless for the top 200 listed companies in the first year of contracts at a certain quantity and price. They are he can master the policy dividing his party. the scheme, rising to $1.9b by the second year, the derivatives; bets on the future. Commissioner Bart Financial Review reported. Chilton from the US Commodities Future Trading A tautology? Commission said that carbon could be the world’s Kevin Rudd has been accused of playing base What’s at steak biggest derivatives market in five years. That market political games after spurning Malcolm Turnbull’s Barnaby Joyce says the Government’s emissions is being created from a standing start. Little thought offer of negotiations over Labor’s proposed emissions trading scheme could lead to the advent of the $150 has been put into developing safety mechanisms in trading scheme. Opposition emissions trading beef roast. His sometime nemesis Bill Heffernan the public interest. But then, politicians only respond spokesman Andrew Robb said that the Prime agrees, saying real issues of food security are at stake. with tough laws after a crisis. Minister was insincere after the government launched Agriculture will be excluded from the ETS for the first a series of attacks on the opposition leader despite his five years, but rural representatives point to the very The old illness metaphor offer of a compromise. His comments came as Labor different treatment of primary producers proposed in Michael Baume, a former Liberal MP and former backbencher Jennie George echoed one of Turnbull’s the US’s Waxman-Markey emissions trading bill. investment editor of the Financial Review, wrote on claims by insisting Australian workers should have the that paper’s opinion pages that an emissions trading Blairingly obvious same protection as American workers in the scheme system is the wrong way to deal with climate change. Tony Blair, former British prime minister, had an before the US Congress, The Australian reported. A carbon tax is a better cure. article in the opinion pages of The Australian which Shifting ground noted that fully 70 per cent of the greenhouse gas Too true The Government is considering doubling compensation reductions needed by 2020 can be achieved by Electricity generators are cutting back major to the coal industry to $1.5b to protect mining jobs investing in three areas: increasing energy efficiency, maintenance work, raising the risk of California-style under a carbon emissions trading scheme, as public reducing deforestation, and use of low carbon power brownouts, because of uncertainty caused by opinion shifts definitively against Australia committing energy sources, including nuclear and renewables. the Government’s carbon pollution reduction scheme. to carbon cuts before the rest of the world, The Implementing just seven proven policies – renewable Victorian generator Truenergy’s managing director Australian reported. The Age reported that the shadow energy standards (say, feed-in tariffs or renewable Richard McIndoe said that with $950m of debt to be cabinet decided to vote against the emissions trading portfolio standards); industry efficiency measures; refinanced this year and banks wary of the impact of scheme on August 13. building codes; vehicle efficiency standards; fuel the CPRS on the industry, the company had decided it carbon content standards; appliance standards, and could not justify the cost of major maintenance, The Different shades of green policies for reduced emissions from deforestation and Age reported. Three in four Australians want the proposed emissions forest degradation – can deliver these reductions. trading scheme toughened up in the Senate, according Nearby to an opinion poll. Commissioned by the Australian Always got something to say, don’t you Kevin Electricity generators are asking for between $5b Greens, the Galaxy poll showed 75 per cent of those Prime Minister Kevin Rudd has been overheard and $20b in extra assistance from the Government surveyed want harsher safeguards on industrial pouring cold water on world leaders’ chances of to avoid an industry crisis under the emissions trading polluters, the Herald Sun reported. hammering out critical climate change limits in scheme, with some suggesting the compensation Copenhagen – just hours after US President Barack could be tied to new investments in renewable The climate frontier Obama called for global optimism, The Age reported. power. The Government is yet to be convinced of An analysis of the ETS by Frontier Economics has the generators’ claims, but after lobbying in July it concluded the scheme would result in 25,000 fewer Coal fist commissioned investment bank Morgan Stanley to jobs and 4 per cent lower real wages by 2020. They Queensland Premier Anna Bligh said the emissions examine the impact of the ETS on privately owned say 45,000 jobs will be lost overall, but new industries trading scheme provided inadequate support for brown coal generators in the Latrobe Valley and will create 20,000 jobs. The Government asserts the coalmining industry. The Federal Government is power stations in Queensland and South Australia, there will be little or no impact, the Financial Review already under pressure from Victorian Premier John The Australian reported. reported. Brumby to provide greater assistance to power generators, the Financial Review reported. Cute little nuclear power plant Hidden costs A new generation of smaller, ‘non-threatening’ More than half of the overall cost to business of the nuclear power plants being developed in South Africa Government’s carbon emissions trading scheme will could open the door to nuclear power in Australia come from hidden expenses such as higher electricity years earlier than expected, The Australian reported.

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6 7 5 July to 7 August 2009

Ziggy Switkowski, chair of the Nuclear Science and The humpy desert The Australian coal industry has already committed Technology Organisation, said the new mini reactors The Australian reported that in the Simpson, Gibson more than $1b of its own money to developing – which were a tenth the size of conventional nuclear and Tanami deserts, more than 1 million camels are and trialing carbon capture and storage projects in power stations – would help ease community running wild across 3 million kilometres, according Queensland, New South Wales and Victoria, in the fears in Australia about nuclear power. While the to a recent report by the Alice Springs-based Desert hope of reducing CO2 emissions by up to 90 per cent. technology was still emerging, he expected the mini Knowledge Co-operative Resource Centre. Dr Glenn The ad says the Australian coal industry’s position on nuclear plants, producing 100 to 200 megawatts, Edwards, the public servant in the Territory’s carbon emissions is clear. They applaud the world to be operating in some countries within five years. Environment Department in charge of camel leadership shown by the Prime Minister in setting ‘That may turn out to be a more acceptable way of management and the report’s chief author, has set up the Global Carbon Capture and Storage Institute, moving into nuclear energy for Australia,’ he told the the Federal Government an ambitious goal: the camel www.newgencoal.com.au. Australian Uranium Conference in Fremantle. population must be brought down to one camel for In the Weekend Inquirer section of The Australian, every 10 square kilometres. ‘This keeps the damage Health their political editor Dennis Shanahan wrote that they do within reasonable limits,’ he says. Mobile the nuclear debate is unstoppable. It’s probably not abattoir owner Harvey Douglas sees a billion dollars Healthy horizon physically possible butt it is theoretically possible in camel meat wandering round the Central Desert Proposing the most radical changes to Australia’s we could even be looking at nuclear power by 2020. and wants to kickstart a remote-based industry he health-care system since the 1980s, the National That’s only five to 10 years away, yet you’d think it says will provide up to 400 jobs a year, mostly to Health and Hospitals Reform Commission final report was inconceivable, wasn’t possible or even to be indigenous people. He says the Federal Government’s says Medicare should be revamped to make it more contemplated given the political rhetoric. $19m package to control camel numbers could be efficient and to provide more choices to consumers. the catalyst for an enterprise creating employment in Dubbed Medicare Select, the new scheme would Thanks Al the desert and contributing to Australia’s international require every Australian to join a ‘health and hospitals Former US vice-president Al Gore suggested that aid efforts – camel meat being shipped to Afghanistan, plan’ offered by the government, non-profit or private even Australia’s passage of an imperfect bill this year for instance. The biggest barrier to kickstarting a organisations. A new public dental health care could help secure a new treaty to cut greenhouse camel meat industry is the willingness of aboriginal system and a partial Commonwealth takeover of the gas emissions. He also said that markets should organizations, such as the Central Land Council, to State health responsibilities are other key elements determine the role of nuclear power. A third point, allow access to Aboriginal land, he says. ‘The world of the plan, The Age reported. On the opinion pages, reported in the Financial Review, Gore made was has a need for low-cost protein,’ Douglas says. ‘There’s Michelle Grattan writes that Rudd’s real problem that excessive executive pay combined with a short- a huge requirement out there. We give Afghanistan is one of credibility – before the 2007 election he term focus was a powerful barrier to improving $88m a year in aid money; the Government has gave the impression he could fix the hospitals and of corporate governance or dealing with risks such as just promised $20m for camel control. Let’s put the course that’s a long, difficult challenge that won’t be climate change. In a meeting with Kevin Rudd, the $20m into processing meat, and lets take some of met any time soon. issue about which they disagree, clean coal, was not the aid money and put it into buying meat. Problem In the Herald Sun’s analysis it noted that elective mentioned. In a speech to the Clinton Global Initiative solved.’ Under current plans for mass aerial culling, surgery hospitals will be built around Australia and in September, Gore said ‘clean coal is like healthy camels would be shot and their carcasses left to rot. all patients guaranteed a GP appointment within cigarettes. It does not exist.’ It would be better to Kim Schwartzkopff, senior wildlife officer with the two days in the $16b health reform blueprint. Elderly focus on existing renewable technologies such as NT Environment Department, also works as an aerial people could be forced to sell their homes to secure solar, wind and geothermal, he said. shooter and agrees this would be a waste. But he is a nursing home bed under the biggest shakeup of Isn’t the climate immutable in God’s not convinced Douglas’ plan to harvest camels as a health in decades. An attack on child obesity also universe? resource is feasible. The trouble, as he sees it, is the features: every primary school would have access to The Age reported that the Catholic Church in Australia ability of the abattoir to keep up with the shooters. an on-site nurse to encourage kids to exercise and is beginning a carbon audit of its operations, including stop eating junk food. The report sets out 12 targets Camelcide thousands of churches and parish buildings, 1,500 in which every Australian should be able to get an News of the camel cull reached the US, with Erin schools and more than 300 hospitals and aged care ambulance within 15 minutes, a GP appointment Burnett, an anchor on the US financial news channel facilities. The church estimates its activities release within two days, and elective surgery within three CNBC, announcing that there was a serial killer in up to 1.5 million tonnes of heat trapping greenhouse months. The Financial Review reported that Kevin Australia, showing a photo of Kevin Rudd. ‘That would gases a year, about the same as all federal government Rudd will avoid committing to any major overhaul of be the Prime Minister of Australia, Kevin Rudd. Okay, agencies put together, excluding the defence forces. $94b health system despite warnings in the report well, you know what he is doing? He has launched air Jaqui Remond is director of Catholic Earthcare, the that the system requires ‘long term structural reform’ strikes – air strikes – against camels in the outback.’ church’s national sustainability division. and may have already hit a ‘tipping point’. The report Her sidekick during the segment, commentator Jim also called for a federal takeover of public hospital Tinny Cramer said: ‘That’s genocide. Camelcide.’ funding. The Australian reported that the National Australia’s aluminium industry says the Government’s Plenty of blubber to go round Health and Hospital Reform Commission report renewable energy target will cost it $700m over the The Opposition has declared the Government’s anti- recommended issuing electronic health-care cards first decade of the scheme and threaten 5,000 jobs whaling strategy a failure following the recruitment of containing an archive of a person’s health history, to in regional centres. In a submission to the Senate yet another African state to the International Whaling reduce administrative red tape and allow cardholders Inquiry into the Government’s renewable energy Commission. Following encouragement by Japan, personal access to their health records. legislation, the Australian Aluminium Council called the Republic of Ghana has become the IWC’s 86th for a 90 per cent exemption from the full costs of the Good move member. Australia signed up to a truce in the IWC RET, The Age reported. Rules covering domestic violence and child abuse while attempts were made to reform it, but Ghana’s will be introduced as part of a major overhaul of decision confirms that a deeply dividing vote race in Get ready Australia’s family law to be undertaken by the the organisation is still underway, reported. Senator Kim Carr, Innovation Minister, announced The Age Government. Attorney-General Robert McLelland $13.4m in grants to 22 businesses for projects Good ad announced a series of moves aimed at strengthening supporting around 180 green jobs under the Rudd The Australian Coal Association ran a full-page ad in the legal system to provide more protection for Government’s Climate Ready Program. The $75m all Melbourne papers noting that Australia is a world women and children from family violence. Under a Climate Ready Program offers matching grants from leader in exporting coal. It is also set to be a world far reaching overhaul, McClelland urged states to $50,000 to $5m to help develop innovative solutions leader in reducing greenhouse emissions from coal. align their laws covering domestic disputes to stop to climate change.

8 9 State of the Nation Report STATE OF THE NATION Report 4 - 2009 Spotlight on the Wealth Effect and “Discover the changing Investor Stress

edge attitudes & priorities of

Discover your Australians.”

An accurate view of trends can only be gained over time. In fact, any conclusions reached Some of the trends outlined in the as a result of changing trends over a narrow State of the Nation Report include: period of time is likely to be misleading (akin • Ageing Population State of the Nation Report Spotlight on the Wealth Effect and Investor Stress to assessing earthquake damage from one streetReport 4, 2009 • Increased education Vs. a helicopter or even wider aerial view). • Increased workforce participation • Increased wealth, debt & discretionary Most Important Problem Facing Australia spending 60 • High and generally increasing Consumer Economic Issues 51% Confidence • Increasingly progressive attitudes and 40 attraction to new ideas

(%) Environmental • Australians’ concern about the environment Issues 17%

20 now being translated into action • Change in leisure activities away from organised sport and family outings to more Terrorism 1% 0 individual pursuits and online activities 5 6 8 0 t-0 r-0 - c p O A Mar ay-09* Nov-08 M • Increased international focus and interest in health

Base: Aust Population 14+ Source: Roy Morgan Nationwide telephone poll (n=684) May 20-21, 2009 and wellness is being played out in the food area. • An increased proliferation of information and communication technologies. The Roy Morgan State of the Nation Report provides a ten-year perspective on Australian Society based on The Roy Morgan Online Store provides you with instant over half a million interviews. These reports are released access to some of the world’s most insightful, robust quarterly and each focuses on a specific industry. consumer research, with unmatched accuracy, integrity & the sheer power of Roy Morgan Single Source. The fourth State of the Nation Report turns the spotlight on the Wealth Effect and Investor Stress providing a new Profiles are available for as little as $950. View a level of understanding of how Australians will react in sample now at the Roy Morgan Online Store. these uncertain economic times. Instant download. Check out the thousands of detailed profiles including Electorate Profiles, Satisfaction Reports, Banking & Finance, Travel & Tourism, Media Usage (including individual web site User Profiles) and Roy www.RoyMorganOnlineStore.com Morgan Values Segments* available right now. Head Office: 401 Collins Street, Melbourne, VIC, 3000 Phone: +61 3 9629 6888 Fax: +61 3 9224 5387 © Roy Morgan Research *Roy Morgan Values Segments devised by Michele Levine of Roy Morgan Research and Colin Benjamin of the Horizons Network. Email: [email protected] State of the Nation (4) Focus on the Wealth Effect and Investor Stress What are Australians In the Australian marketplace what actually happens is never as important as how people feel. But short term perspectives can be misleading. What does the dramatic reduction in the value of Australians’ investments, coupled with increased Consumer Confidence really mean? Only with the perspective of a long term view thinking, doing and can we begin to understand how people really feel and the impact on their behaviour. The fourth State of the Nation Report provides a new level of understanding of how Australian wanting today? consumers will react in these uncertain economic times in terms of their spending habits – one of the main drivers of the economy. There are more than 2,000 Reports and Target Profiles on the Roy Morgan Online Store available for immediate download. Here is a short selection of documents ranging in price from $950 to $65,000. More than 1,000 Target Profiles are available Website Visitor Profiles from RoyMorganOnlineStore.com. A profile of those Australians who visited a range of State of the Nation (Report 3) - Spotlight on Financial Customer Satisfaction - Small Business individual websites including: Automotive Greenhouse Gas Emissions in Australia Owners in Australia - May 2009 All Target Profiles include profiling by: Zuji Visitor Profile This report is the third in the series of our Roy Morgan State This report measures small business owners’ satisfaction trends • Demographics Cartoon Network Website Visitor Profile of the Nation reports and examines the current state of the with the major financial institutions in Australia. It looks • Gender and Age Australia.com (Tourism Australia) Visitor Profile automotive industry in Australia and the impact Australian at long and short term trends for overall business owners’ • Income • Occupation YouTube Website Visitor Profile drivers have on Automotive Carbon Emissions. satisfaction. • Socio-Economic Status and Discretionary Expenditure Seek Website Visitor Profile For over 5 years we have surveyed a sample of approximately • Attitudinal Profile (agree with statements) PSIS Website Visitor Profile Supermarket Satisfaction - April 2009 3,500 small business owners face to face regarding their level • Health and Fitness MySpace Website Visitor Profile This Report provides a uniquely independent and reliable of satisfaction with the financial institutions they deal with. • Societal Issues • Shopping Preferences Amazon Website Visitor Profile measure of customer satisfaction for the major Supermarket The report is released monthly and provides a rolling 6 month • Food Preferences Chains in Australia. Collected continuously from an annual average satisfaction score for each institution. • Finance Preferences Roy Morgan Values Segments* Profiles sample of around 16,000 Main Grocery Buyers, this report is • Advertising and Media Preferences A profile of those Australians who are classified into each of produced monthly and contains 5 year rolling trends. • Activities Profile (Participation) General Insurance Industry – Currency Report ten Roy Morgan Values Segments*. • Eating Out/Fast Food This Report provides an independent and detailed measure of • Leisure Activities • General Entertainment Basic Needs Profile Time Spent with Media - Trend the Australian General Insurance market. A Fairer Deal Profile These tables show time spent with different types of media • TV Sport Watched Real Conservatism Profile across different groups in the population, including by States, • Sports and Activities Participated in Personal Lending - Product Performance • Roy Morgan Values Segments Conventional Family Life Profile age, sex, socio-economic status, heavy, medium, light and no This Report monitors and tracks, over the last four years, the internet usage. • Media Profile Traditional Family Life Profile major institutions within the Personal Lending market on key • Major Magazines Read Something Better Profile measures such as customer penetration, market share (dollars), Banking & Finance Industry Currency Report • National Newspapers Read Look at Me Profile share of customer wallet and share of products. • Heavy Media Usage This report provides an independent and detailed measure Young Optimism Profile • Newspaper Usage • Magazine Usage of the Australian Financial Services market. It not only Visible Achievement Profile Major Cards – Product Performance • TV Watching • Radio Listening monitors and tracks, over the last four years, the financial Socially Aware Profile This Report monitors and tracks over the last four years the • Internet Usage • Cinema Attendance performance of major financial institutions at national and major institutions within the Major Cards market on key • Media Typology Index (Summary) state levels but also provides non-financial information which measures such as customer penetration, market share (dollars), • Print Media Typology Index • TV Media Typology Index Electorate Profiles enables a holistic understanding of each person’s financial share of customer wallet and share of products. In addition to our standard Profile contents, electorate profiles needs and behaviour. also include the most important political issues rated by A small selection of Target Profiles includes: All finance reports are based on data collected continuously Other Financial Product Reports include: electors in each electorate and which political party or parties’ from an annual sample of over 50,000 Australians aged 14+. Mortgages - Product Performance electors believe are better for the each of the issues. Overseas Leisure Travelers Issues include: 1. Reducing taxes. 2. Reducing crime and Roy Morgan Research is the industry standard in Australia Deposits & Transactions - Product Performance A profile of those Australians who have taken an overseas maintaining law and order. 3. Improving business. for data relating to consumers’ financial behaviour and value. Traditional Banking Market - Market Overview holiday in the last 12 months, compared to the Australian Household Insurance – Performance by State 4. Reducing unemployment. 5. Looking after the All major financial institutions in Australia subscribe to Roy Population 14+ generally. environment. 6. Open and honest government. 7. The Motor Insurance - Market Overview Morgan Research’s data and it is or has been used extensively needs of people outside cities. 8. Managing the economy. in government agencies and inquiries, by financial analysts, in National Park/Forest visitors 9. Improving education. 10. Improving health services and company presentations and by the financial press. Capital Cities Tourism Report - November 2008 A profile of those Australians who visited a National Park or hospitals. 11. Defence and national security. 12. Australia’s Derived from the Holiday Tracking Survey of over 50,000 forest on their last holiday. ageing population. 13. The needs of families. 14. Global Australians annually, this report examines the behaviour and Superannuation and Wealth Management in Australia warming. 15. Fair workplace and employment regulations. profile of Australians who holiday at Australian capital cities. This ground-breaking report reveals where Australia’s wealth Public Transport Users travel by public transport really resides, with profiles of Wealth Management Customers Plus Target Profiles ofPublic Transport Users Who Traveled: Visit www.RoyMorganOnlineStore.com & Quintiles, Channels used to purchase wealth management Health and Spa Tourism – March 2009 By Ferry, Jetcat or Rivercat now to browse, search This report quantifies the number and value of health and spa products, Satisfaction & Switching Intentions by product By Train or view a sample report. category and brand. holidays taken by Australians both domestically and overseas. By Tram By Bus *Roy Morgan Values Segments devised by Michele Levine of Roy Morgan Research and Colin Benjamin of the Horizons Network. State of the Nation (4) Focus on the Wealth Effect and Investor Stress What are Australians In the Australian marketplace what actually happens is never as important as how people feel. But short term perspectives can be misleading. What does the dramatic reduction in the value of Australians’ investments, coupled with increased Consumer Confidence really mean? Only with the perspective of a long term view thinking, doing and can we begin to understand how people really feel and the impact on their behaviour. The fourth State of the Nation Report provides a new level of understanding of how Australian wanting today? consumers will react in these uncertain economic times in terms of their spending habits – one of the main drivers of the economy. There are more than 2,000 Reports and Target Profiles on the Roy Morgan Online Store available for immediate download. Here is a short selection of documents ranging in price from $950 to $65,000. More than 1,000 Target Profiles are available Website Visitor Profiles from RoyMorganOnlineStore.com. A profile of those Australians who visited a range of State of the Nation (Report 3) - Spotlight on Financial Customer Satisfaction - Small Business individual websites including: Automotive Greenhouse Gas Emissions in Australia Owners in Australia - May 2009 All Target Profiles include profiling by: Zuji Visitor Profile This report is the third in the series of our Roy Morgan State This report measures small business owners’ satisfaction trends • Demographics Cartoon Network Website Visitor Profile of the Nation reports and examines the current state of the with the major financial institutions in Australia. It looks • Gender and Age Australia.com (Tourism Australia) Visitor Profile automotive industry in Australia and the impact Australian at long and short term trends for overall business owners’ • Income • Occupation YouTube Website Visitor Profile drivers have on Automotive Carbon Emissions. satisfaction. • Socio-Economic Status and Discretionary Expenditure Seek Website Visitor Profile For over 5 years we have surveyed a sample of approximately • Attitudinal Profile (agree with statements) PSIS Website Visitor Profile Supermarket Satisfaction - April 2009 3,500 small business owners face to face regarding their level • Health and Fitness MySpace Website Visitor Profile This Report provides a uniquely independent and reliable of satisfaction with the financial institutions they deal with. • Societal Issues • Shopping Preferences Amazon Website Visitor Profile measure of customer satisfaction for the major Supermarket The report is released monthly and provides a rolling 6 month • Food Preferences Chains in Australia. Collected continuously from an annual average satisfaction score for each institution. • Finance Preferences Roy Morgan Values Segments* Profiles sample of around 16,000 Main Grocery Buyers, this report is • Advertising and Media Preferences A profile of those Australians who are classified into each of produced monthly and contains 5 year rolling trends. • Activities Profile (Participation) General Insurance Industry – Currency Report ten Roy Morgan Values Segments*. • Eating Out/Fast Food This Report provides an independent and detailed measure of • Leisure Activities • General Entertainment Basic Needs Profile Time Spent with Media - Trend the Australian General Insurance market. A Fairer Deal Profile These tables show time spent with different types of media • TV Sport Watched Real Conservatism Profile across different groups in the population, including by States, • Sports and Activities Participated in Personal Lending - Product Performance • Roy Morgan Values Segments Conventional Family Life Profile age, sex, socio-economic status, heavy, medium, light and no This Report monitors and tracks, over the last four years, the internet usage. • Media Profile Traditional Family Life Profile major institutions within the Personal Lending market on key • Major Magazines Read Something Better Profile measures such as customer penetration, market share (dollars), Banking & Finance Industry Currency Report • National Newspapers Read Look at Me Profile share of customer wallet and share of products. • Heavy Media Usage This report provides an independent and detailed measure Young Optimism Profile • Newspaper Usage • Magazine Usage of the Australian Financial Services market. It not only Visible Achievement Profile Major Cards – Product Performance • TV Watching • Radio Listening monitors and tracks, over the last four years, the financial Socially Aware Profile This Report monitors and tracks over the last four years the • Internet Usage • Cinema Attendance performance of major financial institutions at national and major institutions within the Major Cards market on key • Media Typology Index (Summary) state levels but also provides non-financial information which measures such as customer penetration, market share (dollars), • Print Media Typology Index • TV Media Typology Index Electorate Profiles enables a holistic understanding of each person’s financial share of customer wallet and share of products. In addition to our standard Profile contents, electorate profiles needs and behaviour. also include the most important political issues rated by A small selection of Target Profiles includes: All finance reports are based on data collected continuously Other Financial Product Reports include: electors in each electorate and which political party or parties’ from an annual sample of over 50,000 Australians aged 14+. Mortgages - Product Performance electors believe are better for the each of the issues. Overseas Leisure Travelers Issues include: 1. Reducing taxes. 2. Reducing crime and Roy Morgan Research is the industry standard in Australia Deposits & Transactions - Product Performance A profile of those Australians who have taken an overseas maintaining law and order. 3. Improving business. for data relating to consumers’ financial behaviour and value. Traditional Banking Market - Market Overview holiday in the last 12 months, compared to the Australian Household Insurance – Performance by State 4. Reducing unemployment. 5. Looking after the All major financial institutions in Australia subscribe to Roy Population 14+ generally. environment. 6. Open and honest government. 7. The Motor Insurance - Market Overview Morgan Research’s data and it is or has been used extensively needs of people outside cities. 8. Managing the economy. in government agencies and inquiries, by financial analysts, in National Park/Forest visitors 9. Improving education. 10. Improving health services and company presentations and by the financial press. Capital Cities Tourism Report - November 2008 A profile of those Australians who visited a National Park or hospitals. 11. Defence and national security. 12. Australia’s Derived from the Holiday Tracking Survey of over 50,000 forest on their last holiday. ageing population. 13. The needs of families. 14. Global Australians annually, this report examines the behaviour and Superannuation and Wealth Management in Australia warming. 15. Fair workplace and employment regulations. profile of Australians who holiday at Australian capital cities. This ground-breaking report reveals where Australia’s wealth Public Transport Users travel by public transport really resides, with profiles of Wealth Management Customers Plus Target Profiles ofPublic Transport Users Who Traveled: Visit www.RoyMorganOnlineStore.com & Quintiles, Channels used to purchase wealth management Health and Spa Tourism – March 2009 By Ferry, Jetcat or Rivercat now to browse, search This report quantifies the number and value of health and spa products, Satisfaction & Switching Intentions by product By Train or view a sample report. category and brand. holidays taken by Australians both domestically and overseas. By Tram By Bus *Roy Morgan Values Segments devised by Michele Levine of Roy Morgan Research and Colin Benjamin of the Horizons Network. How to avoid buying a pig in a poke.

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Advertisers, including the largest, the • The largest sample in the Western world Australian Government, don’t often stop to • Accurate, believable readership estimates think how lucky we are in Australia to have • Sensible relativities between publications credible, reliable, independent readership • All media measured in one survey - no fusion data, where the numbers are influenced by • Accurate multi-media reach & frequency nothing other than the true responses to a planning edge your Discover World’s Best Practice survey. • World’s deepest, broadest targeting and segmentation data Naturally, publishers constantly feel that • Fast, & frequent results - monthly to their readership is underestimated. And it’s publishers, quarterly to agencies true that in overseas markets, the readership surveys controlled by the publishers Without Roy Morgan’s independent report readership as much higher than our readership, advertisers might find they can’t be independent study (often their claims are quite so sure of what they’re really buying. more than double our estimates). Counting the readers of newspapers & magazines isn’t as easy as counting how many are printed - but it’s ‘readers’ who count. The Roy Morgan Readership Survey is widely www.roymorgan.com 401 Collins Street Melbourne Victoria 3000 recognised to be World’s Best Practice with Phone: 03 9629 6888 Fax: 03 9629 1250 50,000 face-to-face interviews per annum. Email: [email protected] LETTER FROM CANBERRA

people exploiting their differences to the detriment of Smart casual children; flagged possible changes to the Family Law Broadband & IT The Government is running an informal hunt for Act to lift the legal threshold of mandatory reporting of national broadband network board members in child abuse; proposed a national register of domestic Transforming the law parallel with the search undertaken by corporate violence orders; and opened the door for lawyers to The Australian reported that the Government has headhunting firm Egon Zehnder,The Age reported. have a bigger role in dealing with family disputes, brought forward plans to overhaul Australia’s media Multifarious multitudes, Whitman would be The Age reported. laws to accommodate its $43b plan to give 90 per cent proud of the population access to high-speed broadband. Bill of health needed Macquarie Capital Advisers is helping Telstra explore Communications Minister Stephen Conroy told Hospital errors claim the lives of 4,550 Australians the multifarious threats, options and opportunities the technology industry representatives many media a year, according to a report to the Government that Government’s national broadband scheme has thrown regulations would not survive construction of the urges sweeping reforms to the health system. Prime its way. Telstra began working with the bank in June national broadband network (NBN). He said he was Minister released the National Health last year to help advise it on Labor’s original plan for a Kevin Rudd holding meetings to discuss the issues thrown up by and Hospitals Reform Commission report, which $10b network based on fibre to the node technology. both the NBN and the switch from analog to digital warns that the current health system is unlikely to be Macquarie’s remit has expanded dramatically free-to-air transmission with stakeholders. sustainable without reform, The Age reported. since April 7. Telstra’s chief financial officer, John Quigley now Stanhope, has deep links to the bank and is leading It’s called power lobbying Michael Quigley, who became executive chairman Telstra’s work on the NBN in conjunction with it. A key The powerful pharmacy lobby has warned the of the national broadband network company, expects part of Macquarie’s work is assessing the value of the Government against further budget cuts to the $10b a digital television delivered over the internet will be a assets that Telstra could inject into the NBN in return year pharmaceutical benefits scheme, claiming recent key service offered by the $43b network. The former for cash, equity or some other form of compensation, savings measures are already hurting operators in Alcatel-Lucent executive set out his early vision of the Financial Review reported. the sector, the reported. Financial Review the fibre-optic network as not too sexy but absolutely Lowering its eyes Lung cancer more expensive reliable. Quigley spent 36 years working at Alcatel The Government has lowered its targets for its The Age reported that cigarettes would cost more before leaving in 2007 after helping steer its $17b Gershon review-inspired information technology than $20 for a packet of 30 and come in plain merger with US-based rival Lucent Technologies. savings program by more than $30m in the current wrapping if proposals now under consideration by Former Telstra executive Doug Campbell has been financial year. Last year’s Gershon review of federal the Government are accepted. The Government appointed chair of the NBN company in Tasmania, IT spending set a savings target of $140m for 2009- is considering a cigarette tax hike and a ban on all with a ceremony marking the network’s rollout in 10. A Department of Finance spokesman said this remaining tobacco advertising and sponsorship in Hobart, the Financial Review reported. had been revised to $109.2m due to improved data response to its yet to be released Preventative Health And here is your bill… quality and more detailed analysis. However, deeper Taskforce report. The Financial Review reported that the Government cuts to IT spending are expected in the next few years, Slow start has presented the Coalition with a $24,000 bill for the Financial Review reported. The Australian reported that Kevin Rudd’s plans handling Freedom-of-Information requests relating What star sign are you? to deal with homelessness has been stalled by to the planned national broadband network – while Capgemini, assurer for the Australian Tax Office’s federal and state bickering, with a flagship $800 providing no guarantee about how many files it might $725m IT overhaul, has warned that even the smallest million homelessness program that was to start in release. Coalition communications spokesman Nick delay to the roll-out could seriously threaten to blow early July yet to get off the ground. A week after the Minchin cited the bill as proof that Labor was flouting out the project’s July 20 deadline. They told the tax money was to begin flowing, three state and territory its own election promise to improve transparency office in December there was zero contingency and implementation plans for the national homeless and encourage greater compliance with the Freedom substantial action needed to be taken for the project partnership are still to be finalised and the prime of Information laws. to succeed. The consultancy did not believe the ministerial council on homelessness charged with There’s a first time for everything project, which aims to update the technology and driving reforms has not been established. Research The Financial Review reported that the $43b figure tax processing systems, would deliver its full results by the Australian Institute of Health and Welfare widely touted as the eventual cost of building the within the current timetable, The Australian reported. revealed homelessness grew steadily worse even Government’s national broadband network is likely while the economy powered ahead in the first half Looking to mother for advice to be an overestimation, according to analysts of this decade. Former telecommunications executive who supervised and industry figures. On a present value basis, the the structural separation of Britain’s dominant phone Didn’t know Barnaby kept pigs network is likely to cost about $30b, according to Citi company, British Telecom, will help the Government Three of National’s Senate leader Barnaby Joyce’s Investment Research senior analyst for telecoms and decide Telstra’s fate. Tender documents show Peter children have swine flu, and his wife may be coming transport Phil Campbell. Up to a third of the $30b McCarthy Ward, former director of equivalence at down with it. In late July, he was ‘holding out’, The is likely to come in the form of assets given to the BT Group, will be paid $60,000 over seven months Age reported. Government’s national broadband network operating to advise the Government on whether Telstra should company in exchange for equity, Campbell said. have its wholesale and retail arms separated in order to increase competition, The Age reported.

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a significant piece of legislation, the Government’s proposed unfair contracts laws will pose a direct attack on the penalty fees levied by the banks, consumer advocates say. In particular, the industry will have to justify $40 late payment and overdraft fees that lawyers claim are significantly higher than the real charge of the banks, which are estimated to be less than $1 per transaction, The Age reported. As above ‘Charles Kovess is Australia's Passion Provocateur.’ From October 1, National Australia Bank customers www.kovess.com He has helped many large corporations and many p 03 9562 2248 who overdraw their accounts or make automatic m 0412 317 404 Government Departments to payments without enough funds will no longer be PO Box 1412 improve leadership behaviours build better teams penalised $30 dollars. The change will apply to Central Park personal transaction and savings accounts, including East Malvern, Vic 3145 unleash passion and build world-class performance. cheque accounts. The bank may decide to process Mention this ad when you contact us and we'll send you a FREE one-hour audio CD valued at $25.00" the transaction or not, depending on the customer. Interest will be charged on overdrawn amounts. The Important industry move will wipe $100 million from the bank’s bottom Minister for Innovation, Industry, Science and Research, Business, economy, tax line. Some banks charge $50 when accounts go into the red. A Reserve Bank survey found $1.2b was Kim Carr, welcomed the Information Technology The word taken from customers through penalties last year, the Industry Innovation Council’s first meeting saying the Kevin Rudd has warned that many Australians Herald Sun reported. Other banks are reviewing their future of Australian innovation cannot be considered will suffer as the economy starts to recover, with penalty fees following the NAB’s decision. Although, if without acknowledging the part played by Australia’s unemployment and interest rates rising, dearer food the above item is anything to go by, they are indulging $98b IT industry. It, IT that is, is critical to Australia, and petrol, and tough spending cuts in repairing the in a public relations exercise before they are forced to directly employing more than 400,000 people. budget. In a 6000-word essay published in The Age do it by legislation. Council members have been drawn from across the on what he describes as the building decade, Rudd IT spectrum and include representatives of industry, sketches a grim picture of the ‘paradox of recovery’ Extending its arms suppliers, users, education, research, government and from economic crises. The National Australia Bank now owns 80 per cent of unions. Their chair is John Grant, managing director, the retail arm of GS JBWere. Data#3 Ltd and chairman, Australian Information Dear Kevin, Wayne and everybody Industry Association. In an open letter to the Prime Minister and the Letter from Canberra, Book Treasurer, six economists have asked for an enquiry publishing 101 To infinity and beyond into Australia’s financial system – the first in more In the past few months, there has been The Rudd Government announced that it will provide than a decade. They expressed alarm at the erosion much debate in the papers about the $88.4m to ensure Australia is a major partner in the of competition in banking since the global financial Productivity Commission’s review of parallel revolutionary Giant Magellan Telescope (GMT). The crisis, with small independent lenders disappearing import restrictions in the Australian book $1b GMT is a next-generation instrument larger and and banks boosting their share of the home mortgage industry. Currently, local publishers get more powerful than any optical telescope constructed market from 80 per cent to 92 per cent. The letter 30 days to sign and publish international to date. It will be built and operated by a consortium is signed by economists who have advised both books, of which competing editions cannot of institutions from the United States, South Korea sides of politics including Christopher Joye, who be imported from overseas publishers for and Australia. To be located in Chile’s high-altitude chaired former prime minister John Howard’s sale here. Equally, an Australian writer Atacama Desert and will be completed by 2018, it 2003 home ownership task force, and Nicholas published both here and overseas, will only will have up to 30 times better resolution than current Gruen, who is chairing Finance Minister Lindsay have the Australian edition of his/her book land-based telescopes, with images 10 times sharper Tanner’s Government 2.0 taskforce. The letter was sold in Australian bookstores. This is what is than the Hubble Space Telescope. The $88.4m in also signed by Joshua Ganz of the Melbourne referred to as territorial copyright, and which funding, to be provided to the Australian National Business School, Professor Stephen King of Monash is managed by parallel import restrictions: University, includes $23.4m to upgrade Australian University, Professor John Quiggin of Queensland a ban on the importation of competing infrastructure, including the ANU’s Mount Stromlo University and management consultant Sam Wylie, legitimate copyright books. The people who Observatory and $65m for the telescope itself. This The Age reported. In the same paper an article by Eric want the restrictions lifted are mainly big investment will create at least 240 jobs in Australia Johnston noted that in the 12 years since the Wallis bookseller chains such as Dymocks, who during the construction phase. It will also open up review, the banking landscape has changed a lot. argue that doing so will lower the price significant opportunities for Australian industry over of books. On the weekend following the Learning to walk again the 40-year life of the project. release of the Productivity Commission’s Reserve Bank governor Glenn Stevens said the report, The Age provided a good summary Interesting time was approaching to wind back the guarantee of of the divisiveness of the issue: cheaper The Alannah and Madeline Foundation is developing wholesale deposit funds for Australia’s banks. Stevens books or a diminished local industry? a major campaign to educate parents and children said the measures, which have allowed banks to use The commission has recommended the about how to use technology safely and avoid hurting the Government’s AAA credit rating since October, Government scrap territorial copyright themselves or others. CEO Dr Judith’ Slocombe were necessary in the extreme uncertainty at the protection for writers and publishers. wants people of all ages to embrace the internet while height of the crisis. But he said lenders would soon Opponents, including Tim Winton, Richard being aware of the dangers. She said many children need to stand on their own feet, The Age reported. found it easier to bully in cyberspace, as they could Flanagan, Peter Temple and Kate hide their identity. Seven in 10 children who bully on Less cream off the top Grenville, argue removing restrictions the internet would not do it elsewhere, her research The banking industry has admitted that nearly $1b will damage the industry. Most people and shows, the Herald Sun reported. worth of fee income is at risk once a new consumer groups in the against category, comprising law governing unfair contracts comes into force next writers, editors, small publishers and January. Described by the competition regulator as independent bookstores see the removal of

14 15 LETTER FROM CANBERRA

parallel import restrictions as harming their income and the country’ literary culture, in what is a very tightly interlinked system. Level 27 101 Collins Street Authors earn less royalties for the sale of Consulting Melbourne VIC 3000 international copies of their books, small aperium +61 3 9653 9692 publishers will suffer markedly by losing -harnessing technology 11/60 Marcus Clarke St first access to popular international works, Canberra ACT 2601 to serve your organisational goals +61 2 6243 3628 a source of income that has allowed them to foster a healthy local literary scene, www.aperium.com and by connection editors, designers and printers that work within this scene are at increased risk of losing their jobs. of literature and creativity in Australia,’ Door open Brumby said. ‘That is why Melbourne was Former reserve bank heads Bernie Fraser and Ian Former Australian Competition and designated a City of Literature by UNESCO MacFarlane have emerged as potential candidates Consumer Commission chairman Alan late last year – one of only three cities of to head an inquiry into the financial system as Fels expressed an opposite view to the literature in the world.’ Treasurer Wayne Swan played down the prospect above writers on the opinion pages of the of a ‘people’s bank’. But Swan left the door open for Hmmm same paper (The Age). He wholeheartedly an inquiry of the kind being pushed by six leading A banknote company chaired by an assistant governor supported the Productivity Commission’s economists (see above), The Age reported. However, of the Reserve Bank of Australia paid a businessman report and the rights of long-suffering the Financial Review reported that Swan ruled out who was under fraud investigation tens of thousands consumers, saying Australia needs a loftier a systemic review of the financial system and said of dollars through an offshore tax haven account. debate about book prices. He writes that a government-owned bank is not needed to boost The businessman, Donald MacArthur, who was now that overcharging has been exposed, competition. convicted last year of corporate offences, worked in and the claimed benefits written off as Australian Competition and Consumer Commission Africa as a lobbyist for banknote maker Securency. small, it’s time for the Government to end chairman Graeme Samuel has foreshadowed a The RBA, which half-owns Securency, is refusing to parallel import restrictions and encourage mini-financial system inquiry if another significant explain if it approved the payments and what action debate about the cultural benefits of wider merger is proposed for the banking industry. He it is taking in the face of continuing disclosures about reading through cheaper books. Michael enlarged his rhetoric on the lack of competition in its subsidiary’s activities. MacArthur was implicated Heyward, publisher at Text, in an article the sector, after the proposal from the six leading in South Africa’s biggest corporate collapse 10 years published just below Fels’, wrote the economists mentioned above. Productivity Commission knows how much ago. Last year, he pleaded guilty over several reckless damage abolishing territorial copyright and fraudulent company transactions. Always be good to your mother The financial planning industry stands to lose millions will do. Our industry will shrink. There will Civil penalties are annoying of dollars in fees after the Government agreed that be fewer printers, fewer books printed in Business leaders fear a big increase in compliance superannuation funds could provide personal advice Australia, fewer books published. There costs as the Government moves to introduce new to their members for the first time, the Financial will be fewer writers published. Those who regulations imposing civil penalty provisions such as Review reported. are published will earn less money. There fines and disqualification orders on companies and will be fewer editors, fewer independent executives. Corporate lawyers say there are already Saul on the road to Damascus publishers, fewer foreign rights sales. And more than 70 federal laws that impose civil penalty Saul Eslake, 51, well known for picking holes in there will be fewer booksellers to help a new provisions, while the penalties are set to be added Canberra’s economic theories but also quick to praise Tim Winton or Kate Grenville find their in areas such as national consumer protection, credit where economics and good public policy meet, has readers. Much of the current debate sounds and possibly share market integrity, the Financial stepped down as ANZ’s chief economist, breaking like special pleading for big retailers. Review reported. a long-standing ANZ tradition that the bank’s chief economist would move into top management ranks. Old father Hubbard According to Victorian Premier, John An ability to break down complex economic issues The Government’s tax review appears increasingly Brumby, abolishing import restrictions for the ordinary person has been a major hallmark of likely to recommend charging motorists more to drive on books would be economic and cultural Eslake’s 14-year career at the bank. in peak hours, after a research paper found there vandalism. The Premier, often regarded Eslake will join the Grattan Institute as the Program would be considerable economic benefits. The paper as a pro-market economic rationalist, has Director for its Productivity Growth Program. The on road pricing – written by Treasury officer Paul criticised the Productivity Commission’s new think tank is aiming to shape the direction of Hubbard, a member of the tax review secretariat – call for an end to the protection of the debate on many of the important challenges facing backed earlier comments by review chairman and local industry. Brumby is urging the Rudd Australia. It was set up with substantial support from Treasury Secretary Ken Henry, who has floated the Government to reject the commission’s the Commonwealth and Victorian Governments, idea of levying more user pay charges. Hubbard recommendation, despite some of the University of Melbourne and BHP Billiton, www. argues roads are an unpriced over exploited resource, nation’s biggest booksellers saying it grattaninstitute.edu.au. would result in a big cut the price of books resulting in reduced productivity and growth and in Australia, which the commission says frustrated road users, the Financial Review reported. That was quick In mid-July, General Motors officially came out are 12 per cent dearer than in the US or Dirty words of bankruptcy court protection after just 40 days, Britain. Brumby fears scrapping the so- The battle over bank fees is set to get going again with although with a new ownership structure that leaves called parallel importation restrictions Parliament planning legislation banning fees that are it 60.8 per cent owned by the US government, the would hit Victoria particularly hard. He deemed unfair. The draft bill now before the Senate Financial Review reported. is especially concerned about the future economics legislation committee is expected to of Maryborough-based printing company meet vigorous opposition from the banks, according Charitable regime McPherson’s Printing, which employs about to Nicole Rich, policy director of the Melbourne- The Australian Accounting Standards board was asked 300 people. He also said ending protection based Consumer Action Law Centre, the Herald Sun in late July to look at the disclosure requirements to the local industry would pose a wider reported. of not-for-profit private sector entities, including threat to Victoria’s culture. ‘We’re the centre

14 15 5 July to 7 August 2009 promoting a new disclosure regime which provides Defence government all Australian troops except those dealing transparent reporting that would allow donors and with an embassy-based security detachment had to others to compare charities. Vale be withdrawn by July 31. Private Benjamin Ranaudo, 22, became the 11th New root canal Sinking ships Australian to be killed in Afghanistan. Panama has moved ahead with a large expansion The system to safeguard Australia’s ports from of its canal to keep trade between Asia and North Iraq/Afghanistan Letter from terrorism and other security threats is failing, according America flowing through the waterway. It has Canberra 101 to a confidential report that calls for more maritime revealed bids for the main contract in the $US5.25b The Australian government is following workers to be barred from security-sensitive areas. plan to widen the canal, clearing the way for one of closely the consensus game plan, being The Age believes the report, prepared by consultants the world’s largest and most lucrative infrastructure stressed by the US and our European allies, GHD in behalf of the Office of Transport Security, has projects. The almost certain winner of the project, led to minimise its military presence in Iraq in documented serious weaknesses in the security card by Spain’s Sacyr Vallehermoso and Italy’s Impregilo, favour of beefing up its military commitment scheme and recommends an overhaul. A spokesman significantly undercut its rivals with a $US3.2b bid to to Afghanistan. for Transport Minister Anthony Albanese said the build new locks that will double the canal’s capacity It is a choice which reflects the contention report’s recommendations were under consideration and accommodate a new generation of super size that Afghanistan is the centre of most but refused to release them. container ships, The Age reported. global Islamic terrorism and that it is better Don’t want a conflict in this department to confront it there than on one’s own soil. Oily devils The Department of Defence’s chief information officer Except for a minimal deployment of The independent fuel market will disappear if group will hire specialist probity advisers and auditors approximately 100 service personnel, supermarkets continue to offer heavy discounts, to stamp our potential conflicts of interest between mainly to protect Australia’s ambassador suppliers say. The warning came after the Australian suppliers and staff, as it tries to carve $468m in Rob Tyson and his team, our combat Competition and Consumer Commission cleared savings from information technology procurement by presence there has come to an end. Coles and Woolworths of any wrongdoing with three- 2013. Poor coordination of its technology procurement As for Afghanistan, although Kevin Rudd day fuel discounts. ACCC petrol commissioner Joe has been criticised repeatedly over the past four years believes this is the theatre of priority in the Dimasi said Coles and Woolworths had not breached through a series of departmental reviews that have fight against terrorism, there are a growing the trade practices act and independents could match blamed ongoing software compatibility problems on number of voices that maintain that the the discounts, the Herald Sun reported. poor ad hoc purchasing decisions. The department present strategy is doomed to failure. An plans to cull its technology supplier base to bring When pigs fly… eloquent and well-informed spokesman for wayward projects under control, the Financial Review Swine flu and the global recession made June the this pessimistic view is Harvard Professor reported. worst month for tourist arrivals in almost five years. Rory Stewart, a former British diplomat Bureau of Statistics figures show 5 per cent fewer with experience in Iraq and Afghanistan. In Keating! tourists landed in June than in May. Almost the an interview with ABC’s Lateline (July 29), Paul Keating challenged a central part of the Defence entire fall was in tourists from China, Japan and New he argued that given the extreme tribalism White Paper’s 20-year military blueprint, warning the Zealand, The Age reported. and antipathy to any outsiders, the Government has taken too defensive a stance in prospect of some kind of military victory in response to China’s rise in the Asia-Pacific region, They’re called chully-buns in NZ Afghanistan is close to zero. He supported The Age reported. A division of US firm Coleman Company has bought the need for training and education but felt Esky from Nylex Ltd, which is in receivership, for an Combet back where he belongs that the country that must not be allowed undisclosed sum. Defence Materiel Minister Greg Combet wants prime to fail is neighbouring Pakistan, a nuclear defence contractors to sign up to a national initiative Ok, this is getting serious now power and widely believed to be the current to boost local industry involvement in onshore and A record 52 pubs are closing every week in Britain. abode of Osama bin Laden. offshore military projects. The move comes just as The situation could get even worse due to the extra tax Addition the main body representing Australia’s small defence and regulatory burdens placed on the industry by the The last Australian troops serving with US units have businesses, and the Opposition, warned that the Government. Over the past year, 2,377 pubs closed. finished their mission and heading home, formally Government has yet to convince local industry that There are now 53,466 pubs in Britain, down from ending Canberra’s six-year involvement in the conflict. a preference for off-the-shelf and offshore weapons ٣٣٣ 58,600 in the year before the Licensing Act came into No Australian soldier was killed in action but one, purchases will not become entrenched. The concern force in 2003. Private Jake Kovko, died from a self-inflicted wound. Under an agreement between Canberra and the Iraqi ٣ Great time savers. Monthly public affairs bulletins, simple précis, distilling and interpreting public policy and government decisions, which affect business opportunities in Victoria, and

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16 17 LETTER FROM CANBERRA

is that the defence White Paper and equipment Mules Place founder and chief executive officer Shai procurement reforms could do this to the detriment Police have identified more than 100 Melbourne- Agassi has earmarked Australia as the third country of local industry, the Financial Review reported. based drug couriers smuggling heroin from Vietnam behind Israel and Denmark for his plan to replace for seven major crime syndicates. Drug task force petrol powered cars with electric vehicles. Agassi Hmmm head Detective Inspector Doug Fryer issued a public argued in the Alfred Deakin lecture in Melbourne The Royal Australian Navy has confirmed that four warning to the drug suspects that they face certain that Australia could choose to combine raw materials sailors were sent home to Australia from Singapore arrest – and possibly the death penalty (in Vietnam) such as lithium to tap into a burgeoning market for following allegations they held a contest to have sex – if they continue, The Age reported. batteries and become the Saudi Arabia for electric with female workmates – with cash prizes up for cars, the Financial Review reported. Better Place will grabs, The Age reported. Naturally start its Australian operations in Canberra and the News International faces three fresh inquiries into the company will start building infrastructure to support conduct of its journalists and executives following the several hundred electric cars in the national capital justice disclosures that Rupert Murdoch’s newspapers in in 2011. The infrastructure includes charge spots in the UK paid £1m to keep secret the use of criminal Human rights are eternal homes, offices and car parks and drive through swap methods to get stories, The Age reported. Attorney-General Robert McClelland granted a stations for lithium-ion batteries. The swap stations one-month extension to the committee charged with Difficult area will be modelled on petrol stations. investigating how to promote and protect human The Family Court position on giving children Roving drummers rights. The National Human Rights Consultation equal time with both parents will be reviewed. A Former Victorian Premier Steve Bracks and former Committee, chaired by Father Frank Brennan, must spokesman for Attorney-General Robert McClelland Toyota Australia chief John Conomos are to act as now report to government on September 30, the said the government would consider the shared care roving international ambassadors to help drum up Financial Review reported. There are considering requirements as part of a review of the Family Law work for the Australian automotive sector. Helping whether Australia should have a charter of rights. Act. component suppliers gain access to international Revelations Finished supply chains will be a key part of their brief. Bracks On the opinion pages of The Age, George Williams, Former Australian Trade Commissioner, Melbourne- will concentrate on the US, while Conomos will focus the Anthony Mason professor of law at the University based John Finnin, was remamnded by the Victorian on North Asia, particularly China. The Government of New South Wales, wrote that the challenge to the County Court to sentencing after he was found guilty has appointed the men under the automotive $900 bonus payment was brought by Brian Pape, a of child sex charges. He resigned from Austrade in market access program, which forms part of the constitutional law academic at the University of New May 2006. Government’s $6.2 billion green car plan. England. The High Court ordered in early April that the federal stimulus payment was valid under the Constitution. However, the court did not then deliver Manufacturing Education its reasons and much remained unresolved. The 230 Carrot or stick? Transparency agenda pages of judgements delivered in early July showed Federal and state leaders called for a fresh study on Education expert Barry McGaw, the man chosen by that the Commonwealth won a pyrrhic victory. Although whether to introduce mandatory carbon emission education ministers to develop a new online report the tax bonuses are valid, other federal payments have standards for new cars or to retain the existing system card detailing resources and results of each school, been cast into doubt. In a landmark decision, the High where car makers set their own voluntary standards. admits that the project could be damaging if schools Court rejected the Commonwealth’s unrestrained The Council of Australian Governments also decided are unfairly ranked through league tables. The view of its own spending power. Even when it came yesterday to ask Treasury Secretary Ken Henry to change is part of Education Minister Julia Gillard’s to the tax bonus, the Government secured only the report on ways of providing financial incentives for ‘transparency agenda’, in which all schools must narrowest of wins, with the court finding by 4 to 3 motorists to buy low-emission cars through reduced disclose more information on their fees, finances that the bonus was valid. The case calls into question stamp duties and/or registration charges for better and results as a condition of federal funding, The Age the legality not only of many current Commonwealth performing vehicles, The Age reported. reported. payments, but also of billions of dollars already spent. The Commonwealth will need to undertake We can be Saudi Arabia if we put our minds More skills an audit of its expenditure. Suspect payments will to it Midyear application to universities have surged by as include local government infrastructure funding and The promoters of the US electric car network are much as 60 per cent as students look to do degrees payments to the arts and even to the community and looking to tap wealthy people to help fund the initial in a bid to lift their appeal to employers in a tight elite sport. The High Court decision means that these stages of their planned $1b rollout in Australia. Better labour market, the Financial Review reported. and other areas might not be directly funded by the Commonwealth. 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Sticking it to them with their own red tape to catchments that rarely flow to the main Murray Bouncing down Berwick Lodge primary school principal Henry system, which has been devastated by drought and Australians could soon be urged to eat kangaroo as Grossek, who blew the whistle on bungling within over extraction. New South Wales Irrigators Council kangaroo meat businesses look for a lifeline after their the Government’s $14.7b Building the Education chief executive Andrew Gregson said there seemed main export market collapsed. Russia, which buys 70 Revolution Program, has got his way. Initially his to be no logic to Canberra’s cheaper and less reliable per cent of Australian kangaroo meat, has suspended school was allocated $3m to build a second gym it water entitlements in unconnected catchment areas, buying it as part of blacklisting meat imports from 30 did not want or need (the school already has one), The Australian reported. countries because of quarantine concerns. but the school was told to accept the gym or lose its Envy of the world Cored share of the money. Grossek obtained an independent The Financial Review’s Ben Woodhead wrote that The chief executive of the Australian Centre for valuation that put its cost at $1.65 million and told when it comes to efforts to improve the management International Agricultural Research, Peter Core, is state officials the school wanted a library and some of scarce water resources, Australia is the envy of retiring after a distinguished 36-year career. He was classrooms to the full value of the grant, which they the world. One effort, headed by Rob Vertessy, is one of the six department secretaries to be sacked by have now been given following the exposure of the one of Australia’s most ambitious environmental John Howard in the 1996 ‘night of the long knives’. story in the media, The Australian reported. management projects, a bureau of meteorology-led He returned in various roles, most recently heading the Topsy-turvy world initiative known as the Australian Water Resource ACIAR for seven years. He is replaced by Nick Austin, Universities are facing a financial crisis triggered by Information System. The project aims to build a executive director of agriculture, biosecurity and mine the faltering $15.5b market for international students, national database that will allow scientists, industry, safety in the New South Wales Department of Primary the loss of millions of dollars in investment income and government and the public to monitor water Industries, and a non-executive director of Land and the axing of a full fee program for domestic students consumption in real time. The system will go live Water Australia, the Financial Review reported. worth more than $116m, The Australian reported. in January and the project has already earned its New Study developers and proponents international plaudits Yes ministers The Australian Government has asked the Productivity and has ensured Australia will play a central role The Minister for Education, Julia Gillard, and Minister Commission to undertake a study into alternative in developing standards and managing water data. for Innovation, Industry, Science and Research, Kim market mechanisms for recovering water in the Vertessy says that the incorporation of hydrologic Carr, announced that universities may now bid for a Murray-Darling Basin. The Commission is to report in forecasts will make a big difference. share of $550m in funding to improve infrastructure January 2010, www.pc.gov.au/projects/study/water- for the benefit of students and the environment. More money, less water recovery. The investment is part of the Government’s Nation Canberra put more than 10 times as much money Building program designed to create jobs and deliver into Murray-Darling buybacks in 2008-09 than a year Immigration infrastructure for the future. earlier and breached its water purchase budget by almost half, despite underspends on water-saving Numbers leavened with humanity Do a Colombo infrastructure. The Government originally set aside On the opinion pages of The Australian, editor at Scholarships worth scores of millions of dollars should $170m in 2008-09 out of its 10-year $3.1b buyback large Paul Kelly wrote that the Rudd government’s be rolled into a Colombo plan mark II to recalibrate program to purchase water in the basin for the softly, softly approach to asylum seekers is attuned Australia’s relations with overseas students and environment, despite opposition from irrigator groups to global realities and could best be labelled as strong address critical regional, environmental and security that want to keep the water in production. The budget border protection leavened with humanity. He writes issues, James Cook University vice-chancellor received a $250m boost as a result of Government that what happened during the Howard period is Sandra Harding said. As an Australian education concessions to the Senate, before blowing out by that Australia’s policy, its refugee processing and its delegation arrived in India to quell fears over student another $193m to $612m, The Australian reported. detention system, was overwhelmed by numbers. In safety, she called for a resurrection of the 1950s aid this business, numbers dictate results. They determine program that created enormous goodwill among a Sad the public mood and make and break policy. Rudd is generation of former overseas students educated in The Coorong wetland, made famous as the backdrop to about to discover such realities. His stance has so Australia. She believes a Colombo plan mark II would the classic Australian filmS torm Boy, has undergone far been a success because the numbers are still once again ensure the people in our region have a fundamental change according to one of the most manageable. Kelly also notes that each successful access to higher education in Australia on that very extensive research project conducted in the region. Australian operation to manage boat people has relied successful past model, reported. The three-year study, led by the CSIRO, found the The Australian upon regional cooperation. most remote southern lagoons are now experiencing Schoolyard bullies extreme-hyper-salinity, with water between four and On the opinion pages of The Australian, for which he six time saltier than seawater. Traditional freshwater Society writes regularly, former New South Wales Treasurer plants, fish and birds – including the trademark Michael Costa wrote education unions do more Big news Pelican – are being replaced by a smaller number of damage to the economy than thugs on building sites. The editor of Letter from Melbourne/Canberra has salt tolerant species as a result of record low flows in Julia Gillard must be vigorously supported in her gone on Facebook, attracting some interesting friends the Murray River. The findings will add to political heat attempts to revitalise the sector through reform. and contacts. around the reform of the Murray-Darling River system, with the report nominating the removal of water Promotion Agriculture & Water from the system as a key factor in the Coorong’s The Church of England will offer a combined wedding deterioration, reported. and baptism service as couples in Britain increasingly Useful The Age have children out of wedlock, The Age reported. Almost half the water entitlements purchased Back to the future under the national Murray-Darling rescue plan last The Australian wool industry has dropped a O dear financial year will never reach the distressed Murray longstanding pledge to phase out mulesing by 2010, Radio personalities Kyle Sandilands and Jackie O system except in times of flood. New figures reveal a move that has outraged animal welfare groups were taken off air by Austereo management four days the Government made New South Wale’s Lachlan, and led to criticism by some farmers. The industry’s after a stunt in which a 14-year-old girl was attached Gwydir and Macquarie catchments the top targets research and marketing body, Australian Wool to a lie detector machine and questioned about her for its buyback program in 2008-09, despite the fact Innovation, released a statement backing away from sex life, in which she confessed to being raped at age they all terminate in wetlands. About 182,000 of the the 2010 commitment, saying it had adopted a new 12. 397,000 megalitres of water entitlements bought flystrike prevention policy instead,The Age reported. across the basin last financial year are now confined

18 19 LETTER FROM CANBERRA

The event was booked out well before August 4. Jobs COALITION DOINGS Howard has delivered draft chapters of his memoirs The Australian Press Council seeks a policy and to publisher HarperCollins, which hopes to have the research officer for a permanent part-time position Stop press book in the stores by November 2010. in the council’s Sydney office, [email protected]. As we go to press, The Australian reports that Liberal au. More marriage, less love MPs are considering replacing Malcolm Turnbull Crisis Support Services, CSS, is Australia’s leading The Age reported that Tony Abbott is planning to with Andrew Robb for the next election, in the wake professional counselling service and counselling unveil a plan to strengthen the institution of marriage of the Opposition leader’s disastrous calls for Kevin training provider. Its services include Mensline as he ramps up a campaign to bring the doctrine of Rudd to resign over allegations of impropriety over Australia, Sucideline Victoria, beyondblue Infoline, conservatism back to the mainstream of Liberal party the OzCar affair. and Veterans Line. CSS is staffed by a team of politics. Nearby, one of the ideas Abbott proposes in professionally qualified counsellors. It seeks chief Young achiever his new book Battlelines is to radically reframe the executive officer, [email protected]. Peter Costello is set to endorse Kelly O’Dwyer, 32, constitution to allow the commonwealth to overrule Horticulture Australia Limited, a national research, who worked for him from 2004 to 2007 as a legal the states. Letter from Canberra attended the launch development and marketing organisation, seeks non- adviser, for his blue-ribbon seat of Higgins. O’Dwyer of the book at a Melbourne Press Club event, where executive directors, [email protected]. is a senior executive with National Australia Bank. Abbot spoke engagingly about the need to address Bass Metals seeks a General Manager Operations Former Victorian Liberal director Julian Sheezel has health and education, the potential for the nation of for a mining project in Tasmania, apply@pennock. decided not to stand. The executive director of the universal family benefits and, as alluded to above, the com.au. Institute of Public Affairs, John Roskam, who had need to fix a dysfunctional federation. indicated he wanted to run, has now said he will not. Tenders Vale Wealthy Toorak businessman Andrew Abercrombie The Department of Agriculture, Fisheries and Liberal backbencher Danna Vale will retire from is nominating for the seat. Forestry seeks expressions of interest for funding Parliament at next year’s election. She won the under the $5m Forest Industries Climate Change The Tonies seat of Hughes, in New South Wales, in 1996, Research Fund, www.daff.gov.au/ficcrf. Tony Abbott and Tony Smith dismissed reports that after previously working as a lawyer. She was the The Department of Health and Ageing calls for the Liberal Party is considering the pair as possible Minister for Veterans Affairs in the previous coalition applications for its National Binge Drinking Strategy alternatives to lead the party to the next election if government, November 2001 to October 2004, The Community Level Initiative second funding round, Malcolm Turnbull fails to bounce back after a bad Age reported. www.health.gov.au/tenders. slump in the opinion polls. Despite an opinion poll in The Department of Resources, Energy and Tourism July showing just 16 per cent of voters prefer to have APPOINTMENTS, JOBS AND requests submissions for its Solar Flagships program, Malcolm Turnbull rather than Kevin Rudd as Prime which provides $1.5b to support the construction and Minister, the Opposition leader is confident of fighting TENDERS demonstration of up to four large-scale solar power and winning the next election. Appointments stations in Australia, www.ret.gov.au. Haven’t you gone yet? Kevin Stevenson became Australian Accounting Inquiries Peter Costello has called for a wider release of a Standards Board Chairman. He is a past executive The Department of the Environment, Water, confidential Liberal Party report on the defeat of the director of the body. John Morschel will succeed Heritage and the Arts released a discussion paper, Howard Government in the 2007 election. Liberal ANZ bank chairman Charles Goode after its MPs backed his criticism that the party has not yet Draft National Waste Policy Framework – Less board activated a backup plan following Sir Rod , www.environment.com.au/ released its findings into the 2007 election defeat, the Waste More Resources Eddington’s formal withdrawal of his nomination. wastepolicy. Financial Review reported. The run for the chairmanship of BHP Billiton is The Department of the Senate is conducting an Mr Popularity between John Schubert and Jaques Nasser, with inquiry into rural and regional access to secondary Former prime minister John Howard gave a lecture Nasser winning the secret ballot of the 14-strong and tertiary education opportunities, www.aph.gov. on his opinion of the media coverage during his reign BHP board to replace Don Argus as chairman of the au/senate_rrat. as PM, at Carlton’s Basement Theatre on August 4. world’s biggest resources group. Habitat for Humanity The Department of Health and Ageing is conducting He might not be in power anymore, but is still popular. named Jo Brennan as its new chief executive. a consultation on Health Care Identifies and Privacy: Proposals for Legislative Support, ehealth@health. gov.au. The Department of Health and Ageing requests “Let’s do lunch ... submissions – Review of the Operation of the Aged Care Complaints Investigation Scheme, www.health. at Morgans at 401” gov.au/oacqc. The Education, Employment and Workplace Relations References Committee is examining the roles and responsibilities of government, education authorities and others in ensuring the welfare of Enjoy consistently international students, www.aph.gov.au/Senate/ fabulous food in a committee/eet_ctte/index.htm. The Senate Standing Committee on Environment, friendly, charming Communications and the Arts is inquiring into atmosphere and discover the Telecommunications Legislation Amendment why Melbournians who know are singing the praises (National Broadband Network Measures No. 1) Bill of Morgans at 401. Call to arrange an inspection of 2009, to consider the scope of requirements, powers conferred and whether confidentiality provisions are our extensive function rooms. adequate to ensure privacy protections, www.aph. gov.au/Senate/committee/eca_ctte/index.htm. For bookings and enquiries call 9223 2413 401 Collins Street (Bet. Queen & Market Streets) or 0423 022 014 (after hours)

18 19 14ÊCollinsÊStÊMelbourneÊ3000ÊAustraliaÊTelephoneÊ(03)Ê9654Ê1300ÊFacsimileÊ(03)Ê9654Ê1165ÊEmailÊ[email protected] AFFAIRSÊOFÊSTATEÊ  ÊÊÊÊÊÊÊExpiry:Ê ]PZP[  forÊoneÊ Ê Ê Mastercard Amex Visa ÊofferÊ ZLY]PJLZ  Ê - HUK  ÊforÊbothÊLettersÊ Ê WYVÄSL  . HMMHPYZ  ,ÊGovernmentÊwallÊandÊMPÊ W\ISPJ  PaymentÊDetails IÊencloseÊaÊcheque (payableÊtoÊAffairsÊofÊState) PleaseÊdebitÊmyÊ ÊÊÊ ÊÊÊ Cardholder: CardÊNumber: ÊÊSignature: Ê canÊyouÊandÊyourÊbusinessÊaffordÊ V\Y  theÊWindsor VM  ,ÊourÊall-in-oneÊdirectoryÊofÊopinionÊ BigÊIdeas www.affairs.com.au annualÊsubscriptionÊpackage AllÊforÊaÊmodestÊ$890 (totalÊvalueÊ$1260Êplus) (separatelyÊvaluedÊatÊ$860Êplus) NowÊonlyÊ$320Ê NowÊforÊtheÊwinningÊpriceÊofÊ$590 V]LY]PL^  GoldÊtwoÊyearÊsubscription SilverÊtwoÊyearÊsubscriptionÊpackage 10ÊissuesÊofÊLetterÊfromÊMelbourneÊorÊLetterÊ fromÊCanberra,ÊandÊtheÊearlyÊemailÊversionÊ(10Ê issuesÊaÊyear,ÊRRPÊ$275ÊforÊeither) AllÊsupplements,ÊlatestÊVictorianÊandÊFederalÊ GovernmentÊWallÊCharts,ÊVictorianÊandÊFederalÊ MPÊFootyÊChartsÊ(RRPÊ$132) DiscountsÊonÊAffairsÊofÊStateÊdirectoriesÊandÊ advertising 20%ÊdiscountÊonÊpublicÊaffairsÊconsultingÊfees HU  BigÊIdeas scribeÊbeforeÊAugustÊ31,ÊtheirÊnamesÊ areÊenteredÊintoÊaÊdrawÊforÊtwoÊnightsÊ atÊMelbourneÕsÊ(AustraliaÕs)ÊmostÊ elegantÊhotel,Ê TheÊquestionÊis:Ê ÐÊLetterÊfromÊMelbourneÊandÊLetterÊfromÊCanberraÊ (withÊbothÊearlyÊemailÊversions),ÊplusÊallÊtheÊaboveÊ inclusionsÊ( footyÊcharts,Êetc).Ê Ê Ê AnÊaddedÊtouch,ÊforÊthoseÊwhoÊsub notÊtoÊsubscribe? -VY OurÊ OurÊnewÊ orÊtheÊotherÊLettersÊ(withÊanÊearlyÊemailÊversion)ÊÐÊ andÊallÊtheÊannualÊpackageÊ(asÊabove),ÊplusÊaÊcopyÊ ofÊ Ê ‹ ‹ Ê OurÊ makers,ÊthinkÊtanksÊandÊpublicÊpolicyÊbodiesÊ(RRPÊ $330) Ê ourÊwebsite:Ê includes: ‹ ‹

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