Investment figures “stunning:” Swan

Wayne Swan has described new investment figures – published today – as “stunning.”

The Treasurer was speaking at question time in Parliament about a Statistician’s report showing estimated total investment to be $158 billion this financial year and almost $173 billion in 2012-13.

Mr Swan described these figures as “a resounding vote of confidence in the future of our economy.”

“On this side of the House, we are proud of the performance of our economy,” Mr Swan said.

“The Leader of the Opposition should put down his mud bucket.”

Mr Abbott has predicted that the Federal government’s proposed carbon tax will kill the coal industry and be the death of several mining towns and ports.

However, another senior minister, Greg Combet, said 30 per cent of Coalition MPs, including former leader, Malcolm Turnbull, have personal  investments in Australia’s mining industries.

“They do not listen to the Leader of the Opposition’s investment advice,” Mr Combet said.

Mr Combet also broke into song, in Parliament, to ridicule Mr Abbott’s claims.

He sang snatches from the Lucky Starr song, called “I’ve been everywhere.”

Mr Combet recalled that Mr Abbott, too, had visited many mining towns, predicting their “death” when the carbon tax came into effect.

Quoting a chorus from that song, Mr Combet sang; “and all of them are doomed.”

“If there was a TV show, Australia’s greatest hypocrites, they would be the winners,” Mr Combet said.

Payment cut slammed

A welfare organisation says the Federal government’s plan to cut payments for single parent families is “disappointing.”

“These parents are already required to seek part time employment and half are already in some form of paid work,” Dr Cassandra Goldie said.

Dr Goldie,  chief executive officer of the Australian Council of Social Service, said: “The payment cut won’t create a single job or pay for a single training course.”

She said the government’s plan  means that many single parents will see their payments drop from $324 per week to $265 per week from next January

That’s because they would be forced onto the lower paying Newstart Allowance when their youngest child turns eight.

“This is not a workforce incentive but a cost cutting measure at the expense of some of the most disadvantaged families in our community,” Dr Goldie said.

Building approvals slump

Home building approvals tumbled by 8.7 per cent in April.

The Australian Bureau of Statistics reported that this took approvals to a level 24.1 per cent below that of the same month last year.

The Housing Industry Association said that suggests the building industry is heading towards recession.

The HIA’s chief economist, Dr Harley Dale, said this is sending a very negative signal to  the wider domestic economy

Meanwhile the Reserve Bank reported that total credit rose by 0.4 per cent in April after a 0.5 per cent in March.

The bank said housing credit rose 0.4 per cent in April and 5.3 per cent over the tear.

It noted, too, that other personal credit fell by 0.3 per cent in April.

Over the year to April, other personal credit decreased by 1.8 per cent.

Australians “admire their miners:” PM

Julia Gillard told mining industry leaders tonight that Australians “admire their success.”

Addressing a Minerals Week dinner in Canberra, the Prime Minister said:“Australians don’t begrudge hard work.

“… we admire your success.”

But she added: “Now, I know you’re not all in love with the language of “spreading the benefits of the boom”.

“I know everyone here works hard, competes in a tough global environment.

“You take big risks and you earn the big rewards.

“You build something.”

There have been sharp differences, over recent years, between the Federal Labor government and Australia’s miners.

Labor’s concept of spreading the wealth of the minerals boom has been at the heart of that trouble.

The government argues that the revenue it raises from its proposed carbon tax   will be used to spread the wealth of the mining sector to other Australians, through tax cuts, higher superannuation and pension increases.

Ms Gillard repeated that message tonight, saying Australians, outside the mining industry, must be remembered.

“…they work pretty hard in car factories and at panel beaters’ and in police stations and hospitals too.

“And here’s the rub,” the Prime Minister added.

“You don’t own the minerals.

“I don’t own the minerals.

“Governments only sell you the right to mine the resource.

“A resource we hold in trust for a sovereign people.

“They own it and they deserve their share,” the Prime Minister said.

Ms Gillard assured the miners, though, that the government will support the use of  “temporary overseas workers” in cases of “real need.”

But she declared again: “…our first priority is to secure jobs and training for Australian workers.”

Quote of the day

“What we have here is a Prime Minister who has been emasculated.” West Australian Liberal Senator Michaelia Cash discussing Prime Minister Julia Gillard’s role in the present row over Enterprise Migration Agreements, on ABC News 24.

Investors:be warned

Investors. Be alert.

Issuers: You are being watched.

These warnings have come from the Australian Securities and Investments Commission.

This watchdog reports that its review of the way investors’ money is handled “has shown non-compliance by a number of issuers of over-the-counter contracts for difference (CFDs) and margin FX derivatives.”

These are common investment products.

ASIC says it is now midway though a risk-based review, which it commenced in December last year of 40 issuers’ practices.

Already it has found:-

• eight issuers failed to pay client money into a properly designated trust account, when no exception applied, and
• six issuers failed to pay client money into a compliant account on the day it was received or within one business day.

ASIC has also followed up with issuers to ensure they have a clear understanding of ASIC’s expectations about good practice. This includes feedback on:

• performing daily client money reconciliations, ensuring there is an appropriate segregation of duties and that the reconciliation is signed off by senior management, and
• documenting policies for dealing with variances.

ASIC Commissioner, Greg Tanzer said, ‘The client money provisions are an important safeguard to protect the interests of retail investors. ASIC expects issuers to know and comply with their obligations under the law and to put in place effective measures and supervisory arrangements to ensure these obligations are met’.

Mr Tanzer said today’s announcement should serve as a warning to those issuers who aren’t complying with the law.

‘In the second half of our review and in view of today’s advice highlighting the non-compliance areas, we will consider taking strong action against any issuers found to be in breach of the client money provisions’, Mr Tanzer said.

Abbott gags on MP’s support

The exiled Labor MP Craig Thomson sent Coalition MPs rushing for the exits in Parliament today when he voted with the opposition, to defeat a government move to gag debate.

Just after 9am, the opposition tried to suspend standing orders to debate the issue of debt.

The government then moved to gag the debate.

Mr Thomson, who had always voted with Labor since being exiled a month ago, then joined cross benchers, to oppose the gag.

The Leader of the Opposition, Tony Abbott, and the manager of opposition business, Christopher Pyne, made for the doors but Mr Abbott was ordered back by the Speaker, Anna Burke, because it was too late to leave.

His vote was counted.

A fleet-footed Mr Pyne made it out before being noticed by Ms Burke, thereby negating Mr Thomson’s vote.

Despite the fact that the House live minutes show Mr Abbott did vote in the first vote this morning, Mr Abbott would not confirm that he was in the chamber for the vote.
“I’m not going to go into the precise details of who was what where,” he said.
Greens Leader Christine Milne said Mr Abbott’s behaviour today demonstrated that he could not be regarded as a responsible candidate for the prime ministership.

We’re big eaters, but poor readers

Australians are spending more on food – both in supermarkets and restaurants – but less on newspapers and books.

Figures just released by the Australian Bureau of Statistics also show that – overall – our spending fell by 0.2 per cent in April, on seasonally adjusted estimates.

Supermarkets and grocery stores chalked up a rise of 0.2 per cent in their sales last month, on seasonally adjusted figures, while sales in restaurants, cafes and catering services rose by 0.9 per cent.

On the same basis, liquor sales rose by 0.1 per cent.

Sales in take-away food stores, though, fell by 0.2 per cent.

But the nation’s department stores, which have been having particularly tough times, saw their sales fall by a seasonally adjusted 1 per cent last month.

The biggest fall in retail sales last month occurred in Victoria, where sales slumped by 1.6 per cent.

Surprisingly, sales in the resource rich State of Western Australia also fell last month, by 0.2 per cent, while sales in Tasmania fell by 0.6 per cent.

Shopkeepers in the ACT suffered a fall of 0.6 per cent in their sales, while retail sales in the Northern Territory fell by 0.9 per cent.

However, there were rises, too.

Retailers in New South Wales enjoyed a rise of 0.7 per cent in their sales, while sales rose by 0.5 per cent in South Australia and by0.1 per cent in Queensland.

The Bureau’s figures also showed, though, that we spent less on newspapers and books last month, but more on pharmaceuticals, cosmetics and toileteries.