The man at the helm of Rio Tinto’s China operations, Ian Bauert, has
warned that Australia risks underachieving during the Asian century due
to high costs and falling productivity.
As Chevron said more than $100 billion in LNG investments in
Australia “hang in the balance”, Mr Bauert said Australia had become the
miner’s most expensive place to do business after being the cheapest
five years ago.
He said Australia had to correct serious shortcomings to realise the aspirations set out in the Asian Century white paper.
The problems included competitiveness, productivity, infrastructure investments and attracting foreign capital.
“Unless the focus of future debate is on addressing such issues, my
feeling is we are likely to fall behind and seriously underachieve our
potential in the Asian century,” Mr Bauert told the University of
Western Australia’s In The Zone conference in Perth.
A series of resource companies have cited costs as reason for pulling back from projects.
Chevron is expected to next week release updated costs for its Gorgon
development. The budget for the nation’s biggest ever resource project
reportedly may have blown out by $20 billion to more than $60 billion.
Chevron Australian managing director Roy Krzywosinski said the LNG
industry’s confidence in making major capital investments was being hit
by the current fiscal environment.
“Most industry and political observers suspect further tax imposts on the industry,” Mr Krzywosinski told the conference.
“This should worry anyone who is interested in Australia securing long-term investment.”
He said the carbon tax had “imposed another cost not borne by overseas competitors”.
Australia was at a “cross roads” and government and resource
companies needed to work together to find ways to improve long term
competitiveness.
Woodside and NAB chairman Michael Chaney told the conference that
Australia would only get an acceptable level of economic growth through
improving productivity.
He said Australia had been able to grow in the past decade because of
high terms of trade, high levels of investment and strong population
and workforce growth. This however was masking the impact of declining
productivity.
He said further tax reform was also needed.
The
owner of Coles supermarkets, Wesfarmers, is considering $1 bet limits
on the poker machines it owns as the company explores options to
distance itself from the pubs and gambling business.
Getup confirmed that it dropped Wesfarmers from the
anti-poker machine campaign it launched earlier this year against
Australia’s supermarket giants after speaking with management and being
encouraged by its commitment to address problem gambling issues.
‘‘We were extremely pleased at the good faith they have shown
over the past six months but we’re looking for more concrete answers at
this stage,’’ said Getup organiser Erin McCallum who sent a letter last
week requesting an update on the company’s progress.
It is understood that Wesfarmers has engaged corporate
consultants, the Boston Consulting Group, to look at the economic impact
of introducing reforms, like $1 betting limits, on its poker machines
which are believed to number around 1300.
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Wesfarmers spokesman Alan Carpenter said the company was not
making any comment on what might be happening with its pubs business.
Getup has indicated that if it is not happy with Wesfarmers
progress it may still target Coles as part of its anti pokies campaign
this Christmas.
It is understood that Wesfarmers is exploring alternatives to
owning and operating its 92 pubs, and associated poker machines, as it
does not see as a natural fit with its business.
Betting limits are one of the options under consideration and
not necessarily the most likely one to be adopted as implementation
would be expensive and would only drive gamblers to nearby pubs and
clubs if it was the only operator to implement them.
This argument was raised by Woolworths in opposition to
Getup’s resolution to introduce $1 limits on its poker machines along
with other curbs.
Neither supermarket operator can afford to sell off its pubs
if it compromises the liquor business which has become a lucrative
enterprise for both companies.
Wesfarmers and Woolworths are required to own pubs and hotels
in Queensland as this is a prerequisite to operating bottle shops in
the state, like Woolworths’ successful Dan Murphy’s brand.
The vast majority of Wesfarmers pubs are in Queensland.
Woolworths has said that, in practice, pub ownership is
required to underpin its liquor business in other states as well. The
majority of the hotels owned by Woolworths’ pub joint venture, ALH, are
outside of Queensland.
The Getup campaign lead to an extraordinary meeting for
Woolworths shareholders last week to consider a resolution to introduce
curbs on its poker machines.
The resolution
was soundly defeated by Woolworths investors
with 95 per cent voting against the resolution that was vigorously
defended by the supermarket operator, which is also Australia’s largest
operator of poker machines.
In his final meeting as Woolworths chairman, James Strong,
said the resolution was a ‘‘radical proposal’’ that was being ‘‘put
forward for one company and not for everybody else in any other form of
gambling within Australia. I think we’ve made that point and it remains
valid no matter what the arguments are around accountability,’’ he told
investors.
Read more: http://www.smh.com.au/business/coles-mulls-1-limit-on-pokies-20121126-2a38m.html#ixzz2DKJBu2ga
The
owner of Coles supermarkets, Wesfarmers, is considering $1 bet limits
on the poker machines it owns as the company explores options to
distance itself from the pubs and gambling business.
Getup confirmed that it dropped Wesfarmers from the
anti-poker machine campaign it launched earlier this year against
Australia’s supermarket giants after speaking with management and being
encouraged by its commitment to address problem gambling issues.
‘‘We were extremely pleased at the good faith they have shown
over the past six months but we’re looking for more concrete answers at
this stage,’’ said Getup organiser Erin McCallum who sent a letter last
week requesting an update on the company’s progress.
It is understood that Wesfarmers has engaged corporate
consultants, the Boston Consulting Group, to look at the economic impact
of introducing reforms, like $1 betting limits, on its poker machines
which are believed to number around 1300.
Advertisement
Wesfarmers spokesman Alan Carpenter said the company was not
making any comment on what might be happening with its pubs business.
Getup has indicated that if it is not happy with Wesfarmers
progress it may still target Coles as part of its anti pokies campaign
this Christmas.
It is understood that Wesfarmers is exploring alternatives to
owning and operating its 92 pubs, and associated poker machines, as it
does not see as a natural fit with its business.
Betting limits are one of the options under consideration and
not necessarily the most likely one to be adopted as implementation
would be expensive and would only drive gamblers to nearby pubs and
clubs if it was the only operator to implement them.
This argument was raised by Woolworths in opposition to
Getup’s resolution to introduce $1 limits on its poker machines along
with other curbs.
Neither supermarket operator can afford to sell off its pubs
if it compromises the liquor business which has become a lucrative
enterprise for both companies.
Wesfarmers and Woolworths are required to own pubs and hotels
in Queensland as this is a prerequisite to operating bottle shops in
the state, like Woolworths’ successful Dan Murphy’s brand.
The vast majority of Wesfarmers pubs are in Queensland.
Woolworths has said that, in practice, pub ownership is
required to underpin its liquor business in other states as well. The
majority of the hotels owned by Woolworths’ pub joint venture, ALH, are
outside of Queensland.
The Getup campaign lead to an extraordinary meeting for
Woolworths shareholders last week to consider a resolution to introduce
curbs on its poker machines.
The resolution
was soundly defeated by Woolworths investors
with 95 per cent voting against the resolution that was vigorously
defended by the supermarket operator, which is also Australia’s largest
operator of poker machines.
In his final meeting as Woolworths chairman, James Strong,
said the resolution was a ‘‘radical proposal’’ that was being ‘‘put
forward for one company and not for everybody else in any other form of
gambling within Australia. I think we’ve made that point and it remains
valid no matter what the arguments are around accountability,’’ he told
investors.
Read more: http://www.smh.com.au/business/coles-mulls-1-limit-on-pokies-20121126-2a38m.html#ixzz2DKJBu2ga
