PRESS DIGEST-Australian General News - June 15
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Workplace Relations Minister Julia Gillard is planning to water down industrial relations policing of the building sector. The changes propose to reverse the former government's procurement rules, thus, removing restrictions "on union promotional activities and endorse more generous union right-of-entry rules to building sites.' The proposed changes have angered business groups, which warning that construction costs will rise and billion of dollars of government-funded stimulus infrastructure projects could be lost. Page 1.
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The Business council of Australia (BCA) has proposed a plan to embrace radical tax reforms in order to discourage the use of debt and boost national savings. The BCA has urged the Henry tax review to cut company tax rate to 15 percent, in a bid to, accelerate economic growth and help the Australian budget achieve balance and pay off debt. "The abolition of inefficient state taxes such as stamp duties and the harmonisation of other imposts such as payroll tax,' the BCA says. Page 1.
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Major blue-chip companies in Australia are changing their funding strategies as local banks and traditional US and Europe lenders become more stringent. Australian companies like Telstra (TLS.AX)(TLS.NZ), Woolworths (WOW.AX), Woodside Petroleum (WPL.AX) and Foster's Group (FGL.AX) have sought more than A$2.5 billion in loans from Asian lending institutions. Credit Suisse analyst Michael Tierney stated US and European lenders had become less competitive than Asian lenders after global economic crisis and local companies seeking expand their funding base in Asia. Page 1.
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The Federal Government has helped launch Australia's bid to host the FIFAWorld Cup for 2018 or 2022. The Government believes holding an event like the World Cup would pump another A$5 billion in to the economy. Prime Minister Rudd, Football Federation Australia chairman Frank Lowy and Opposition Leader Malcolm Turnbull where present at the launch. "The great doubters, the great naysayers will say why, even if you have no passion for this game or sport at all, look simply at the economics of it,' Mr Rudd said. Page 2.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Federal Government will continue to support the Aboriginal intervention despite the reintroduction of the Racial Discrimination Act. Indigenous Affairs Minister Jenny Macklin has endorsed continuing with income quarantining of welfare payments where 50 percent of an individual's payments must be spent on essential items, such as food and clothing. "My personal view is that these (income quarantine) measures have been beneficial to the Aboriginal people living in these remote communities,' Ms Macklin said. Page 1.
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According to a new industry forecast, Australia's property prices are set to rise over the next three years. New research by BIS Shrapnel has found that Sydney, Melbourne and Adelaide will be the first Australian capitals to see a rise in growth of 19 percent by 2012. Brisbane's housing market will rise by 16 percent as interstate and overseas migration will help prices grow. "From here, the recovery in housing demand is expected to broaden and deepen,' Angie Zigonmanis from BIS Shrapnel said. Page 3.
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Australian's favourite spread, Vegemite, is about to a get makeover after 85 years on the market. The spread will still contain the original secret ingredients but will be blended with cream cheese in order to broaden Vegemite's appeal. "It's made to use with dips, carrot sticks, celery sticks – very much the Vegemite for snacking,' Simon Talbot head of corporate affairs Kraft Foods. News leaked out about the new product last week forcing Kraft Foods to launch the unnamed spread three weeks ahead of schedule. Page 3. Continued...
