Retail sales rise

Australians are spending more time – and money – in their local coffee shops.

So the Bureau of Statistics was able to report that retail sales rose – by 0.3 per cent – on seasonally adjusted figures last month.

This followed a fall of 0.1 per cent in pre-Christmas turnover in December.
The Bureau said January’s  rise was driven by a 6.6 per cent rise in cafe, restaurant and catering trade.

Clothing, footwear and personal accessory sales also rose, by 0.1 per cent.

But food sales were flat.

And Australia’s department stores saw their sales fall by another 0.2per cent.

But Australia’s  two  Territories saw big rises, with turnover in the ACT rising by 2.1 per cent last month, while sales in the Northern Territory jumped 3.5 per cent

Among the States, Queenslanders were Australia’s biggest spenders last month, with trade in the Sunshine State rising by 1.7 per cent.
Shoppers in the boom State of  Western Australia are also opening their wallets and purses  again.

Turnover in that State rose by 1 per cent last month.

Tasmanian shopkeepers, too, saw their turnover rise, by 0.1 per cent.

But these rises were offset by falls in New South Wales (-0.5%), Victoria (-0.4%) and South Australia (-0.3%).

In trend terms, turnover rose 0.1% in January 2012.

This follows a rise of 0.1% in December 2011 and a rise of 0.2% in November 2011.

More detailed industry analysis and further information on the statistical methodology is available in Retail Trade, Australia (cat no. 8501.0).

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Your broadband:the best deal promised

The Federal government says final approval of the separation of Telstra means that Australians will get the best possible deals on their communication services.

The Prime Minister Julia Gillard said that approval, by the ACCC is  “a major landmark for the nation’s telecommunications industry.”

“This means for the first time in Australia’s history, telecommunications providers will compete on a level playing field,” Ms Gillard said.
“Consumers are set to benefit from this competition as retailers compete evenly and fiercely to give customers the best and most innovative services, at the best price,”  she added.

“By structurally separating Telstra, the Government has finally fixed the wrongs of past governments.

“Telstra was structured and sold in a way that was bad for consumers, bad for competition and bad for the economy.

“For consumers, this means the Government has secured the best outcome for their telecommunications services by locking in maximum competition – now and into the future,” Ms Gillard said.

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Homes:a good time to buy

A fresh look at the market might be worthwhile,  if you have been thinking of buying a new house.

Reliable figures show that homes have become more affordable, in many parts of Australia, over the past year.

Two rate cuts have helped.

And there may be more to come, even though the big four banks recently raised their rates.

A survey, conducted jointly by the Housing Industry Association and the Commonwealth Bank, shows that  housing affordability has now risen over four consecutive quarters.

The survey partners say this shows conditions for home buyers are steadily getting better.

Their affordability Index improved by 2.2 per cent in the  three months to the end of December.

This took the cumulative improvement over the year to 8.3 per cent.

“A decrease in mortgage lending rates and continued earnings growth more than offset a modest increase in the median dwelling price to further improve housing affordability in the December 2011 quarter,”  HIA’s Senior Economist, Mr Andrew Harvey said.

“As expected, the interest rate cuts in November and December of last year saw housing affordability continue to trend in the right direction.

” When the recent improvements in affordability are considered alongside the easier access to skilled trades as home building activity has eased, it increasingly looks like a good time to buy a new home for those financially able to do so,” he added.

In the most recent quarter average weekly ordinary time earnings posted growth of 0.5 per cent and mortgage lending rates were down by a sizeable 0.25 percentage points.

And although home prices rose by 0.5 per cent in the December quarter, they were still down by 1.8 per cent over the year.

The survey showed that home affordability had improved in all Australian capitals – except Adelaide – in the final three months of last year.

Affordability in Sydney improved by 3.5 per cent.

Melbourne saw a 4.6 per cent improvement.

Brisbane’s affordability rose  by 7.9 per cent, Perth’s by 4.1 per cent, Hobart’s by 3.1 per cent and Canberra’s by 6.1 per cent.

Affordability in  Adelaide, though, fell by 3.6 per cent over the quarter.

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It’s back to work: PM

Julia Gillard says the time for distractions is over.

The Prime Minister made that declaration, while speaking to reporters, after her commanding 71-31 win against her challenger, Kevin Rudd.

“The last week has seen us, the women and men of the Labor Party focused inwards, focused on ourselves,” Ms Gillard said.

“ At times it’s been ugly.

“ I understand that,” she added.

Then she made her declaration to Australians “one and all.”

“I can assure you that this political drama is over and now you are back at centre stage where you should properly be.

“And you will be the focus of all of our efforts.”

Within hours, though, reality took over.

A hard line Right wing warrior, Mark Arbib, announced that he would be resigning from Federal parliament, as a conciliatory gesture, saying he wanted  to spend more time with his family.

Mr Rudd will return to the back bench.

“I accept the caucus’s verdict, without qualification and without rancour,” he said.

The Opposition Leader, Tony Abbott, asked how the public could have confidence in Julia Gillard when 31 of her MPs and almost a quarter of her Cabinet did not.

He said the vote was likely to be “merely a stay of execution” for the Prime Minister.

The real test for Julia Gillard, though, will come with the next Federal election, which is due to be held in the second half of next year.

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Julia Gillard to remain Prime Minister

Australia’s Prime Minister Julia Gillard has survived a challenge from her predecessor Kevin Rudd, on a commanding 71-31 vote.

Rudd, who had based his campaign on his claim of public popularity, says he will return to the back bench.

He became Australia’s Foreign Minister after Ms Gillard deposed him, in a coup, in June 2010.

Ms Gillard, who has consistently performed badly in opinion polls, will face her biggest challenge next year, when a fresh Federal election is due.

She has said that she can also defeat her conservative rival, Tony Abbott, in that election.

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PM wins 71-31

The Labor party has now officially announced the result of its leadership ballot, saying Julia Gillard  won, defeating her challenger, Kevin Rudd, 71-31.

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Julia Gillard remains PM

Julia Gillard wins 73/29 according to an unconfirmed report

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The “unstable” or the “unelectable”?

An old rule in journalism is that that predictions should become vaguer, as the vote approaches.

I am about to break it.

I am predicting that Julia Gillard will  defeat Kevin Rudd in the imminent leadership ballot.

That’s because most, though not all, members of her cabinet remember what Kevin Rudd was like as a boss.

And they don’t want him back.

I have a second prediction, too.

Kevin Rudd will do better than expected, in the ballot.

And  a “draft Kevin” movement will soon be under way.

Kevin Rudd’s message, to his caucus colleagues, has been simple, but compelling.

It  is this.

Julia can’t win the Federal election, due next year.

I can.

The Treasurer, Wayne Swan, rejects that.

He is supporting Julia.

“I think the Prime Minister has strong support from her colleagues because there’s really a simple choice tomorrow,” Mr Swan says.

That is “who has the character, who has the temperament and who has the courage to be Prime Minister of Australia.

“ And I believe the Prime Minister has the overwhelming support of the caucus because she’s tough, she’s determined, she gets things done and she’s got things done that her predecessor could not get done,” he adds.

Julia Gillard’s message is also powerful.

“My caucus colleagues, Labor members one and all, put themselves forward for public office because they believed in the Labor vision of the future,” she says.

“ A stronger and fairer Australia, an economy that offers the benefits of opportunity, an economy that’s ready for the future, but also a society that is prepared to extend support to the Australians who need it the most.

“Tomorrow, we will unite behind that Labor purpose and that Labor vision and we will be getting that Labor vision into a reality for Australians,” Ms Gillard adds.

Kevin Rudd got the break he needs most, when a hard man of the New South Wales Right, Anthony Albanese, declared – tearfully – that much as he loved Julia – he would be voting for Kevin, in the ballot that matters.

The internal battle, in the Federal Labor government, has been so bitter, over the past few days, that it is difficult to imagine Labor surviving, next year’s election, under any leader.

However the opinion polls still suggest, at least, that Kevin’s chances would be better than Julia’s.

Besides, voters would have to think, very seriously, about the prospect of Tony Abbott becoming Prime Minister.

Some, certainly, would find that thought  deeply unappealing, as close observers, like Tony Windsor, regard Mr Abbott as unstable.

Much the same is, of course, being said of Kevin Rudd.

Indeed, as things stand at present, the choice next year might be represented as being between two candidates, regarded as unstable, and a third, who is widely seen as unelectable.

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