Online Press review 12 May 2015

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FRONT PAGE

 Budget 2015: Deficits tipped to defy pessimistic forecasts (AUS) Uren, Crowe Tonight’s federal budget will defy market expectations of a $40 billion deficit, Treasurer says, claiming the government is “going to beat that, and beat it every year”.  Budget 2015: Team Abbott plays the ball, not the man (AUS) Shanahan ’s public dominance of this year’s budget sales job so far is a strategy springing from ’s chairmanship of cabinet’s expenditure review committee and a determination to avoid the errors of last year’s political failure.  Palmer faces $12bn lawsuit as China burns at possible court loss (AUS) Garvey Clive Palmer could be hit with a legal action seeking more than $12 billion in restitution if the MP succeeds in kicking China’s Citic out of the Sino Iron project in Western Australia.  Security funds to back up data laws (AUS) Crowe Tougher security laws will be matched with more funding in a budget announcement tonight that will give federal agencies more powerful technology while helping phone and internet companies cover the cost of a new data retention regime.  Melbourne teen terror suspect ‘liked’ radical sheik (AUS) Akerman, Lewis A teenager charged with planning a terrorist attack expressed online support for a radical Muslim cleric who was imprisoned in Britain for soliciting the murder of Jews, Americans and Hindus.  I had no choice over Lomborg centre: V-C Paul Johnson (AUS) Burrel University of Western Australia vice-chancellor Paul Johnson says he walked away from establishing the Australia Consensus Centre because he felt he lacked the power to force his academics to work with controversial Danish professor Bjorn Lomborg.  Federal budget 2015: Hockey promises world-leading crackdown on profit shifting (AFR) Coorey Multinational companies that shift profit out of Australia will be forced to pay tax or face fines of 100 per cent of unpaid taxes plus interest, as part of a big-spending budget the hopes will restore its fortunes.  Federal budget 2015: Abbott government commits $450m more to fight local jihadis (CAN+SMH) Kenny, Wroe The Abbott government will commit a further $450 million to the fight against homegrown terrorism in Tuesday's budget as it warns of a dangerous new trend towards teenagers, some as young as 14, taking up the cause of violent extremism.

DOMESTIC AFFAIRS

POLITICS  Norfolk chief minister in last-ditch attempt to save island's self-government (CAN) Lawson Norfolk Island Chief Minister Lisle Snell is leading a delegation to Canberra this week in a last- ditch attempt to save self-government on the island, targeting Senate crossbenchers in the hope they will take on the islanders' cause.

Ambassade de France en Australie – Service de Presse et Information Site : http://www.ambafrance-au.org/ Tél. : 61 (02) 6216 0150 Email : [email protected]

BUDGET 2015  Budget 2015: Committee cuts made in the ‘national interest’ (AUS) Martin An agricultural committee to be abolished in today’s budget listed developing definitions for the terms “national interest” and “national significance” among its achievements.  2015 budget: daycare juggling act to cost stay-at-home mums (AUS) Balogh, Lewis Middle-class mothers who stay home to care for young children but send older siblings to daycare are the biggest losers in the Abbott government’s “mummy wars’’ welfare reform.  Budget 2015: Labor, Greens slam crackdown on PPL double-dipping (AUS) Balogh, Lewis Labor, the Greens and unions have baulked at the government’s $1 billion savings measure to level the playing field for all parents and prevent some well-paid new mothers accessing both employer and taxpayer-funded paid parental leave schemes.  Budget 2015: Infrastructure pack tips $150k for every electorate (AUS) Hepworth Every electorate in the nation will receive an infrastructure windfall in today’s budget.  Budget 2015: Reports on road resolution wrong: Jamie Briggs (AUS) Wallace Assistant Infrastructure Minister Jamie Briggs has sought to hose down reports today’s budget will contain an “offer” to resolve the $3 billion road funding standoff between Victoria and the commonwealth.  Last chance for Joe Hockey as Treasurer (AUS/Features) van Onselen “If there has been a more important budget for a treasurer and prime minister I can’t think of it.”  Smoke, mirrors and another wasted opportunity (AUS/Opinion) Sloan Make no mistake, the government’s proposed jobs for families childcare package is about reeling in more votes. It represents another expansion in runaway spending on childcare and ensures that there are essentially no losers.  Federal budget 2015: Joe Hockey gets heavy on multinationals (AFR/Comment) Hewett It's become popular – and relatively painless – domestic political sport to attack the budget evils of multi-national tax avoidance. Just ask a beaming Senator Sam Dastyari, fresh from his spectacular show-trial Senate hearings featuring various chief executives.  Federal budget 2015: Joe Hockey's new tech tax (AFR/Comment) Chenoweth It's a disarmingly simple flow chart, and bright and early on Tuesday morning multinational companies will be calling their tax advisers urgently to ask – are we in the orange box?  Federal budget 2015: Tax shenanigans a new level of stupid (AFR/Comment) Tingle This will fool Corporate Australia, almost as much as doing a somersault on child care will fool the voters, or the financial markets won't notice a shift in budget goals from reducing the budget to offsetting spending.  Federal Budget 2015: Government will pay phone companies to keep personal data (AFR) Kerin Telecommunications companies and internet service providers will be given $131 million to cover storage costs for their customers' metadata for up to two years as part of a $450 million boost to national security spending in the budget.  Federal Budget 2015: Ghosts of treasurers past haunt Joe Hockey (AFR/Feature) Kitney Joe Hockey may feel the presence of failed federal treasurers of the past when he stands to deliver his second budget.  Hard cases can make bad tax law, experts fret (AFR/Feature) Potter Hard cases can make bad law. Joe Hockey's federal budget is a hard case. Some tax experts are beginning to fret that the Treasurer's restless search for options for combating multinational tax avoidance risks producing bad law and angering the US government.  Budget 2015: Time to pare back middle-class welfare (AFR/Opinion) Emerson Like storm clouds, budget emergencies seem to come and go with the prevailing winds. The north-westerlies typically blowing through Canberra this time of year have carried away the budget emergency the Coalition declared in 2013, when debt was less than 12 per cent of gross domestic product, replacing it with a breezy view that debt at 50-60 per cent of GDP would be "a pretty good result".

Ambassade de France en Australie – Service de Presse et Information Site : http://www.ambafrance-au.org/ Tél. : 61 (02) 6216 0150 Email : [email protected]

 Joe Hockey moves to crack down on multinational companies and online GST (CAN+SMH) Kenny, Hutchens Thirty multinational companies operating in Australia will face tough new tax liabilities after Treasurer Joe Hockey gave the Tax Commissioner more power to claw back potentially billions of dollars in profits shifted overseas.  Abbott government scales back paid parental leave even though it helps new mums and babies (CAN+SMH) Wade The Abbott Government's decision to slash the number of mothers entitled to publicly-funded parental leave was made despite expert advice showing the existing scheme has improved the health of mothers and babies and lifted female workforce participation.  Federal Budget 2015: Time for multinationals to pay the piper (SMH/Analysis) West A few days ago, US drug giant Pfizer quietly filed its Australian company accounts with the corporate regulator.  Federal budget 2015: Forget whose budget it is. Worry about what's in it. (SMH/Analysis) Gordon It isn't often that the Treasurer calls a media conference on budget eve, complete with props, to outline measures that will be included in the budget he will announce 24 hours later.  Federal budget 2015: Parental leave could be Tony Abbott's biggest backflip yet (SMH/Comment) Ireland In his 20 months as Prime Minister, Tony Abbott has built up an impressive collection of backflips, U-turns and about faces.  Federal budget 2015: Indonesia braces for aid cuts (CAN+SMH) Topsfield, Whyte Funding for some of the long-term Australian aid projects established in Indonesia in the wake of the Boxing Day tsunami is due to expire this year, paving the way for budget savings.  Federal budget 2015: Government to splash $45m for local infrastructure projects (CAN+SMH) Kenny Every lower house federal MP in the country is to be allocated $150,000 for investment in local infrastructure projects under a new "Stronger Communities" fund to be unveiled in the federal budget.  Federal budget 2015: Abbott government to splash out $400 million on Australian Border Force (CAN+SMH) Massola, Hartcher The federal government will spend up to $400 million in extra funds to create a dedicated new border enforcement agency, to start operating from July 1.  Federal Budget 2015: Now it's time for the Morrison budget (SMH/Opinion) Reith I named the budget the Morrison budget on Sky News a while ago, but it was only to give the Minister for Social Services the credit he deserves. Joe Hockey is the Treasurer and he is not going away.

LOMBORG CONSENSUS CENTER  Sandstone bubble-wrapped moral panic a frightening force to see (AUS/Opinion) Cater Who does Paul Johnson think he is? The University of Western Australia’s vice-chancellor or something? It must have been something of a shock for Johnson to discover that despite what it says on his business card, he doesn’t actually run the university.  UWA risked $3m in donations over Bjorn Lomborg think tank (AFR) Dodd The University of Western Australia stood to lose at least $3 million in bequests if it had gone ahead with Bjorn Lomborg's Australia Consensus Centre.  Lomborg row shows why universities are different from think tanks (AFR/Opinion) da Silva Rosa Dr Bjorn Lomborg's competency or integrity as a scientist is a red herring in the controversy over Consensus Centre. Incompetence and fraud are not rare in academia, and when established, typically do not provoke the sustained, widespread and real outrage that attended news of the centre's establishment at UWA.

Ambassade de France en Australie – Service de Presse et Information Site : http://www.ambafrance-au.org/ Tél. : 61 (02) 6216 0150 Email : [email protected]

ECONOMY  GST to apply to digital downloads (AUS) Crowe Movie downloads, games and e-books bought from overseas will have the GST applied under new laws proposed by the government.  Bank your savings, don’t spend them (AUS/Comment) Sloan Sometimes I wonder whether the Abbott government is Arthur or Martha. I think some of the ministers must think the same.

SECURITY/TERRORISM  Online debate pits ‘saving lives against privacy’ (AUS) Schliebs Encrypted communication is one of the biggest challenges facing terrorism investigators, with the head of the FBI’s international operations saying the best hope is for companies behind the technology to hand over data on request.  Push to try teen in adult court (AUS) Akerman The prospect of terrorism offences being heard in a juvenile court has triggered legal debate about whether youths charged with such serious acts should be treated as adults by the justice system.

RET  Rethink puts RET deal in doubt (AUS) Maher The Clean Energy Council has withdrawn support for last week’s deal between the Coalition and Labor to end the impasse over the Renewable Energy Target because the government has retained a requirement to review the scheme every two years.  2020 carbon targets: RET deal is a small but useful step (AFR/Comment) Winestock A deal on a new renewable energy target, which was tentatively reached last Friday, will help the wind and solar industry but is also essential for the government to have a chance of meeting its emissions reduction targets. Even with this deal, the numbers look very tight.  Dick Warburton slams RET deal (AFR) Ludlow The businessman hand-picked by Prime Minister Tony Abbott to review the Renewable Energy Target, Dick Warburton, said he was disappointed with the in-principle deal struck between the Coalition and Labor saying the final figure of 33,000 gigawatt hours from green energy was too high and would not tackle the billions of dollars in cross-subsidies to wind and solar companies.  Renewable energy companies say Abbott government backflip will harm investment (SMH) Cox, Arup Major renewable energy companies have angrily hit out at the Abbott government for its vow to maintain regular reviews of Australia's clean energy target, describing the decision as a broken promise that will hurt industry.

CLIMATE CHANGE  Australian Antarctic Division battles record ice, considers moving (AUS) Lloyd Record Antarctic sea ice is forcing scientists to consider relocating research bases as they struggle to cope.

INDIGENOUS AFFAIRS  Slump hits Andrew Forrest indigenous jobs scheme (AUS) Taylor The philanthropic initiative of Andrew “Twiggy” Forrest to end disparity between Aboriginal and non-Aboriginal Australians is laying off staff as the mining downturn bites hard in the Pilbara where thousands of jobs were created and filled by Aboriginal men and women during the resource construction boom.  Beware expert panels of any colour (AUS/Opinion) Allan I am something of a sceptic when it comes to people proclaiming to be experts over what amounts to running a country. My take is that if you tell me the answer you want then I can appoint a group of smart, well-meaning, sincere people to give you that answer.

Ambassade de France en Australie – Service de Presse et Information Site : http://www.ambafrance-au.org/ Tél. : 61 (02) 6216 0150 Email : [email protected]

FOREIGN AFFAIRS

FOREIGN POLICY  Helping other nations serves the national interest (AUS/Opinion) Redden Expected cutbacks to overseas aid in the budget handed down tonight will undermine not only Australia’s ability to respond adequately to emergencies such as the Nepalese earthquake but also may work against our economic and diplomatic interests.  US and Australia dangerously deluded about future (CAN/Opinion) White For longer than anyone now living can remember, the United States has been by far the world's richest country. This simple fact has profoundly shaped the world in which we all live, and Australia's world especially. It has been the foundation of the United States' position as the world's leading strategic power and Australia's security guarantor. We find it almost impossible to imagine that this will not always be so.

ISLAMIC STATE  Lessons from India on how to prevent IS recruiting (CAN+SMH/Opinion) Hartcher In the last three weeks Australia's authorities have uncovered two alleged terrorist plots in Melbourne. The plots are being rolled up but they keep coming.

ECONOMY  FTA online ‘dashboard’ helps Australian exporters get best deal (AUS) Wallace A new online dashboard to help Australian exporters get the best out of the three North Asia free- trade agreements will be announced in today’s federal budget, which also includes funding for a free trade roadshow.

FRANCE

 Long-term local BNP Paribas chief, Didier Mahout, to depart role (AUS) Main Didier Mahout is about to step down as country head for BNP Paribas in Australia and New Zealand after eight years in the job.

WORLD

 Joko Widodo woos PNG to block Papua bid for forum seat (AUS) Callick Indonesian President Joko Widodo has released five “freedom-fighter” prisoners from the fractious province of Papua and then flown to neighbouring Papua New Guinea, in a last-gasp bid to prevent the Papua independence movement gaining membership of the Melanesian Spearhead Group.  British political earthquake 'off the richter scale' (CAN/Opinion) Stuart Less than two minutes after polling stations closed across Britain last Thursday, excitement turned to confusion. For months opinion samples insisted the parties were running neck-and- neck; now, suddenly, an extensive exit poll taken as voters left the ballot booths insisted the Conservatives would cruise to victory.

Ambassade de France en Australie – Service de Presse et Information Site : http://www.ambafrance-au.org/ Tél. : 61 (02) 6216 0150 Email : [email protected]

EDITORIALS

The Australian  Giving up on economic reform is not an option A year ago Joe Hockey limbered up for his first budget by dancing with his son to a hit tune, singing: “This is gonna be the best day of my life.” Most days since then have been tough politically, so he confronts his second budget tonight as a chastened Treasurer, and the crucial question for the government and the nation is whether he also approaches the dispatch box more enlightened by his experience. While contrasts with the energetic and ubiquitous Social Services Minister Scott Morrison have been unflattering for Mr Hockey, the truth is that the Treasurer has tilled the ground more sensibly in the lead-up to this budget. Last year he ambushed the nation with reforms that might have been defendable or even overdue but were sandbagged by the way they were delivered without a case being made out during the preceding months. “We were trying to do too much in one budget,” Mr Hockey explained on Sunday, avoiding the issue of whether it might have been deliverable with more adept preparation, advocacy and parliamentary negotiation.

The Canberra Times  Tony Abbott lurches another way on paid parental leave If it was Tony Abbott's hope that Sunday's $3.5 billion childcare and parental leave package would demonstrate the government's shift in budget focus from loud and bumptious to dull and routine, then the delivery did not go quite to plan. Announcing that a single childcare subsidy would ensure more money flowed to low- and middle-income families, the Prime Minister dwelled at length on the likely boost to the economy.

CAPTIONS & CIRCULATION

AUS = The Australian (News Limited); Circulation WK: 126,901, Sat.: 277,386; Digital WK: 31,240, Digital SAT: 31,381. AFR = The Australian Financial Review (Fairfax Media Ltd); Circulation WK: 68,425, Sat.: 69,012. SMH = The Sydney morning Herald (Fairfax Media Ltd); Circulation WK: 161,169, Sat.: 265,457; Digital WK: 56,559, Digital SAT: 56,113. CAN = The Canberra Times (Fairfax Media Ltd); Circulation WK: 30,420, Sat.: 49,965, Sun.: 31,308.

Ambassade de France en Australie – Service de Presse et Information Site : http://www.ambafrance-au.org/ Tél. : 61 (02) 6216 0150 Email : [email protected]