19 February 2020

19 Feb 2020
Australian Financial Review, Australia

Author: Peter Ker • Section: General News • Article type : News Item
Classification : National • Audience : 38,015 • Page: 1 • Printed Size: 356.00cm²
Region: National • Market: Australia • ASR: AUD 7,193 • Words: 875
Item ID: 1236120883
Licensed by Copyright Agency. You may only copy or communicate this work with a licence. Page 1 of 2
Cashed-up BHP cautious over dividend

Peter Ker
New BHP chief executive Mike Henry administrative burden and giving them sion looms within six months at West-
wants more growth options in ‘‘future- smaller teams with more permanent ern Australia’s Scarborough gas joint
facing’’ commodities such as nickel and employees. ‘‘In the face of market venture with Woodside Petroleum.
copper, but says slowing demand uncertainty and slowing rates of BHP’s 25 per cent stake in Scarbor-
growth means the company’s biggest growth in commodity demand, a ough means it will likely have to com-
opportunity lies in perfecting its exist- greater proportion of value growth will mit about $US2.85 billion of the total
ing businesses and culture. come from an unrelenting focus on $US11.4 billion project cost. Mr Beaven
Speaking after announcing a 39 per being great at what we do,’’ he said. said the Scarborough investment deci-
cent rise in half-year profits, Mr Henry But Mr Henry said he would also pre- sion would be more difficult if a federal
said the coronavirus was not yet affect- pare BHP for a lower carbon future review leads to higher petroleum
which poses challenges for its thermal resource rent taxes.
ing ‘‘demand, pricing nor payment coal, oil, gas, iron ore and coking coal
terms’’, but would do so if not brought ‘‘We don’t want to see any further
divisions. downside, none of these projects are
under control by the end of March. ‘‘We do need to create more options
The threat posed by the virus, easy, when you get into that sort of
in future-facing commodities,’’ he said, greenfields or near-greenfields quadrant,
COVID-19, to Chinese demand promp- in reference to the metals required for
ted BHP to take a cautious approach to it is difficult, so we don’t want to go back-
renewable energy generation and stor- ward on any fiscal terms,’’ he said.
its interim dividend, which was 8.5 per
cent lower than analysts had expected. age. ‘‘We need more copper and we Mr Gardner said the resources
‘‘If the viral outbreak is not demon- need more nickel.’’ industry had traditionally spent too
strably well contained within the Mr Henry said he was not interested much on expensive growth projects.
March quarter, we expect to revise our in small markets like lithium and ‘‘While we would encourage diversi-
expectations for economic and com- cobalt, preferring investments that fication of their business in high-
would ‘‘move the needle’’ for the quality assets, we’ll wait for more
modity demand growth,’’ the company $186.3 billion company. information before making up our
said, adding that oil would be more He said his preference was to gener- mind in this case,’’ he said.
affected than iron ore and copper. ate new investment options through Mr Henry said he was mindful of the
The US65¢ payout was still BHP’s exploration and early-stage entry to industry’s bad track record, and was
biggest half-year dividend, extending a projects, but he did not rule out larger determined not to repeat it.
golden era of shareholder returns at acquisitions. He said he would consider offers for
the big end of the mining industry. BHP has made an early-stage copper BHP’s unloved thermal coal assets, but
The bumper $US5.18 billion ($7.74 entry by accumulating a 14.7 per cent would not say there was an active pro-
Continued p33 stake in explorer SolGold over the past cess under way.
18 months. He said the business case for unify-
From page 1 SolGold is expected to announce a ing the company’s dual-listed structure
major fundraising initiative within did not stack up at this time.
Cashed-up BHP
cautious on dividend
weeks and has been looking beyond its BHP
two biggest shareholders, BHP and
Newcrest Mining, for those funds. Half year 2020 2019
BHP chief financial officer Peter Revenue($USm) 22294.0 20742.0
billion) half-year underlying profit was Beaven said SolGold should look for Pre-tax profit 9041.0 7483.0
driven by strong iron ore prices, with the cheapest source of funds. ($USm)
the iron ore division delivering 70 per ‘‘It tends to be that companies at this Netprof($USm) 4868.0 3764.0
cent of BHP’s earnings, up from 47 per point in time, they are very high risk Interimdiv(US¢) 65.0¢ 55.0¢
cent a year earlier. and very high return, and so we find Payable March 24
Plato Investment Management portfo- that the cheapest form of funding is
lio manager Peter Gardner said he was equity,’’ he said.
satisfied with the size of the dividend, ‘‘You can ferret around in the market
and predicted China would respond to and you can find alternative sources,
the virus with economic stimulus that structured debt, royalties and so on, but
benefited iron ore miners. certainly it has been our observation
Mr Henry, who became CEO last that in the event you have a successful
month, said the first part of his vision project those things tend to be
was to improve BHP’s existing per- extremely expensive.
formance and culture by rapidly invest- ‘‘We have been working very co-
ing in technology and people. operatively with SolGold in the recent
He said he wanted to instill more of a past and so we would hope to be able to Mike Henry: preparing BHP for a lower
‘‘performance edge’’ within BHP’s staff. continue to do that.’’ carbon future. PHOTO: EAMON GALLAGHER
He would improve the performance of Mr Henry’s first big spending deci-
middle management by reducing their
19 Feb 2020
Author: Peter Ker • Section: General News • Article type : News Item
Item ID: 1236120883
BHP chief Mike Henry in Melbourne

yesterday. PHOTO: BLOOMBERG
19 Feb 2020
Author: Peter Ker • Section: Companies and Markets • Article type : News Item
Item ID: 1236116958
LESSONS IN GOLD, GAS AND BLOOD

Reporting season Record gold prices have papered over a few cracks for Newcrest Mining; Woodside has been hurt by LNG market
sentiment; CSL was the top-performing blue chip stock in 2019, write Peter Ker, Angela Macdonald-Smith and Yolanda Redrup.
Newcrest Mining well placed. basis, revenue and net profit climbed more
Industry background: Australian miners The result: Net profit excluding one-time than 11 per cent. The interim dividend rose
have enjoyed the highest gold prices (meas- items fell 25 per cent to $US1.06 billion 11.8 per cent to US95¢ ($1.42) per share.
ured in local currency) in history over the ($1.6 billion) in the year ended December 31, Outlook: Trading above $332 per share and
past year, and the timing could not have mostly because of lower commodity prices. with a price-earnings ratio of 48, CSL is not
been better for Newcrest Mining, given its The bottom-line net profit was hit by a cheap. But until the immunoglobulin mar-
flagship Cadia mine in NSW was designed to recently flagged write-down on an ket dynamics shift and the levels of supply
achieve peak gold production in 2019. undeveloped LNG project in western and demand align more closely, it’s likely to
The result: High gold prices papered over Canada, sinking 75 per cent to $US343 mil- further enjoy a healthy amount of growth.
some cracks in the past six months, as pro- lion. Revenue fell 7 per cent to $US4.87 bil- The worry is that if there were a slow-
duction slumped 12 per cent following out- lion. Woodside declared a final dividend of down in immunoglobulin, investors could
ages at Lihir in PNG and Telfer in WA. But US55¢ a share, down from US91¢. pull out as quickly as they’ve piled in. The
strong prices enabled the miner to virtually Outlook: Woodside has guided investors to biggest long-term threat to the business is
match the previous half-year profit and the displacement of its immunoglobulin
an increase in production in 2020 – to
dividend. Newcrest reported a $US236 mil- therapies with emerging treatments such as
between 97 million and 103 million barrels
lion profit ($351.6 million) and a US7.5¢ gene therapies. But even when Western
of oil equivalent, from 89.6 million last year.
dividend. markets look to new forms of treatments,
Still, output then should remain roughly
Outlook: In Lihir and Cadia, Newcrest owns CSL will likely find a market for its immun-
flat until the start-up in 2023 of its Sango-
two of the longest life assets in the global oglobulin products in countries like China,
mar oil project off Senegal.
gold industry, meaning investors can con- where they are not widely used.
A positive decision to start construction
fidently buy and hold its shares for decades. The company is spending about 10 per
of Scarborough LNG is targeted for about
But the outlook is less rosy on a three- to cent of revenue each year on research and
mid-2020. A similar decision for Browse
five-year horizon as Newcrest rebuilds its development, investing in developing its
LNG has slipped to late 2021 from mid-2021,
portfolio. Cadia remains very profitable, but own gene therapies as well as therapies to
potentially easing funding pressures on
its best days are behind it. Newcrest has an prevent or treat conditions from deadly sec-
Woodside’s balance sheet if it takes longer
attractive pipeline of growth options, but ondary heart attacks to graft-versus-host
than targeted to sell down stakes in Scarbor-
over the next five years they are more likely disease. SI
ough and Pluto-2.
to consume cash rather than generate cash.
With Australian dollar gold prices near CSL
record highs, this feels like a better moment Industry background: A shortage in
to sell than buy. immunoglobulin has propelled blood
products company CSL to become the top-
Woodside Petroleum performing blue chip stock in 2019. CSL has
Industry background: Woodside Petro- been able to capitalise on the imbalance
leum’s business and growth prospects are between supply and demand, having rolled
closely tied to the Asian liquefied natural out new plasma collection centres ahead of
gas market, which is plagued by oversupply its key competitors Grifols and Takeda for
CSL stole a march
and soft prices, exacerbated by the coron- the last few years.
on rivals in the
avirus outbreak. While the biotech giant has about 30 per
immunoglobulin
The epidemic has further weakened LNG cent market share in the immunoglobulin
market. PHOTO:
market sentiment just as Woodside is push- market, it is responsible for about 50 per
JAMES DAVIES
ing ahead with two major projects in West- cent of the growth, according to chief exec-
ern Australia – its $16 billion Scarborough utive Paul Perreault. Growth in the demand
project that would process gas through an for immunoglobulin in the three biggest
expansion of its Pluto LNG plant, and its lar- global markets of the US, Australia and
ger Browse project that would send gas for Canada is about 9 per cent – 12 per cent
processing through the North West Shelf (above the historical norm of 6 per cent-
LNG plant. 8 per cent), because of increased awareness
Prospects for long-term demand for LNG
remain robust in most scenarios as gas of the diseases it’s used to treat, ageing
grows as a fuel to complement renewable patients and increased dosages, according
energy, which should help Woodside in its to a Credit Suisse note.
quest to sell a stake in Scarborough and the The result: CSL recorded a 7.5 per cent leap
related Pluto-2 project to a third party. in its net profit to $US1.25 billion ($1.86 bil-
A further weakening in crude oil prices is lion) for the six months ended December 31,
increasing the importance of low costs for while increasing revenue 9 per cent to
petroleum producers, leaving Woodside $US4.91 billion. On a constant currency
19 Feb 2020
Author: Angela Macdonald-Smith • Section: Companies and Markets
Article type : News Item • Classification : National • Audience : 38,015 • Page: 31
Printed Size: 450.00cm² • Region: National • Market: Australia • ASR: AUD 9,093
Words: 652 • Item ID: 1236116650
APA gas plant

delay softens
year outlook
Angela Macdonald-Smith last three years. debt-funded acquisitions that may
Mr Wheals voiced confidence in fur- arise, particularly through its North
APA Group says its first-half net profit ther growth opportunities for APA that American growth strategy,’’ Mr Chap-
rose 11 per cent but warned full-year would keep annual growth capital man said.
earnings will be toward the lower end expenditure at between $300 million S&P Global Ratings said APA was
of its guidance because of a delay in and $400 million. ‘‘well-positioned for growth’’ based on
completing a gas plant upgrade. its strong performance for the half year.
Managing director Rob Wheals said He pointed to a potential $1 billion of APA declared a first-half dividend of
he was ‘‘very disappointed’’ with the growth opportunities in the next three 23 cents a share as expected and reaf-
delay of more than three months in years, although several of those firmed guidance for full-year EBITDA
completing the Orbost plant for cus- remained uncertain, such as the West- between $1.66 billion and $1.69 billion,
tomer Cooper Energy. ern Slopes pipeline in NSW for gas ‘‘albeit ... likely to be toward the bottom
Scheduled to start in the December from Santos’ Narrabri project. end of the range,’’ chief financial officer
quarter – already a delay of several APA also remained committed to Peter Fredricson said.
months from Cooper’s original sched- assessing potential acquisitions in The full-year distribution is put at
ule – full commercial operations are North American gas transmission and about 50 cents a share.
now due in March after raw gas was distribution, Mr Wheals said, while
delivered into the plant on Monday. Mr noting work was still at an early stage APA Group
Wheals added that APA’s revenue from despite the time taken to study oppor-
tunities so far. Half year 2020 2019
the project was deferred rather than Revenue ($m) 1313.8 1237.2
lost. He stepped up the search for a US
acquisition after he took over from Pre-taxprof($m) 277.5 250.5
Net profit rose to $175 million in the Net profit ($m) 175.0 157.4
six months ended December 31 from Mick McCormack in July. The process
Interim div 23.0¢ 21.5¢
$157.4 million in the year-earlier period. had been interrupted under Mr McCor-
mack’s tenure because of the $13 billion Payable March 11
The more closely watched figure of
earnings before interest, tax, depreci- takeover bid for APA by Hong Kong-
ation and amortisation rose 6.9 per cent listed Cheung Kong Group, blocked by
to $842.2 million and revenue climbed the government in November 2018.
6.2 per cent to $1.31 billion. Any acquisition in the US would likely
JPMorgan energy analyst Mark be funded by new equity and debt.
Busuttil described the result as one that APA also continued to keep an eye
was ‘‘in line’’. on potential acquisitions in Australia.
‘‘Despite downgrading revenue con- Asked whether APA could take a stake
tribution from growth projects in in Woodside Petroleum’s Pluto LNG
FY2020 (because of delays to commis- expansion project, Mr Wheals would
sioning of the Orbost gas processing not comment on that specifically but
plant), there was no change to full-year said APA would always examine
EBITDA guidance,’’ Mr Busuttil said, energy infrastructure assets with good
adding that it implied June-half offtake agreements in place.
EBITDA of between $818 million and Moody’s senior analyst Nicholas
$848 million, which is between 3 per Chapman described the result as
cent lower and 1 per cent higher than ‘‘solid’’, saying it highlighted APA’s
the first half. stable cash flow generation and earn-
Much of the growth in earnings in ings from new assets.
the December half came from new ‘‘The group’s strong credit metrics
pipelines and power plants coming provide ample headroom to manage
online after the completion of about any potential downside operating con-
$1.5 billion of growth projects over the ditions and to accommodate potential
19 Feb 2020
Words: 652 • Item ID: 1236116650
APA’s net profit in the six months ended December 31 rose to $175 million from $157.4 million in the year-earlier period.
19 Feb 2020
The Australian, Australia
Author: Bridget Carter • Section: Business News • Article type : News Item
Item ID: 1236105039
DATAROOM BRIDGET
EDITED BY
CARTER
www.theaustralian.com.au/businessreview carterb@theaustralian.com.au
APA emerges as suitor for part of Woodside stake in Pluto-2 LNG plant
As Woodside Petroleum moves figures were ahead of RBC
ahead with a busy schedule to forecasts for the six-month
sell down some of its LNG period. It declared a first-half
exposure, the country’s biggest dividend of 23c, up 1.5c.
pipeline operator, APA Group, ADDITIONAL REPORTING:
has emerged as a potential suitor BEN WILMOT, PERRY
to acquire a stake in the WILLIAMS, JOYCE MOULLAKIS
expanded Pluto-2 plant.
The first cab off the rank for
Woodside is finally taking shape
with a data room now open for
Scarborough, where the West
Australian producer plans to
offload 25 per cent of its 75 per
cent holding.
But it’s the Pluto-2 LNG
expansion project that is Wheals
expected to pique the interest of
APA as it looks for growth
opportunities in the west.
Woodside will look for buyers
for Pluto-2 in two tranches: the
first 25 per cent stake will be tied
to an integrated Scarborough
and Pluto-2 project, with a
separate process to follow for a
further 25 per cent stake.
That second opportunity is
likely to probably grab the
attention of a host of major
infrastructure investors, with
APA at the front of the queue.
APA boss Rob Wheals
dodged the question on Tuesday
when asked if it had started due
diligence on the prized stake, but
confirmed it would look at
energy infrastructure businesses
when they came to market.
A deal might partly hinge on
whether it lands a chunky US
target this year, with a $US2bn-
$US4bn acquisition still
remaining its goal under a new
strategy plan laid out by the new
APA boss.
The move came as APA’s
interim net profit rose 11 per cent
to $175m, from $157m in the
previous corresponding period,
while earnings before interest,
tax, depreciation and
amortisation rose 6.9 per cent to
$842m, from $787m. Both
19 Feb 2020
Author: Bridget Carter • Section: Business News • Article type : News Item
Item ID: 1236105039
APA’s earnings East coast and Western $

$m central region Australia 11.50
1800
Revenue by
2
5 customer industry
1600
13 11.00
1400 13 ENERGY
1200 UTILITY
32 10.50 $11.40
1000 APA closed
RESOURCES
800 up 1¢
10.00 S
600 INDUSTRIAL
24 58 AND OTHERS
400
9.50
200 1H 1H
$788 $842 53
0
2013 14 15 16 17 18 19 20 H1 2019 20
Source: The company, Bloomberg
19 Feb 2020
Author: Perry Williams • Section: Business News • Article type : News Item
Item ID: 1236105262
Miner warns against tax hike on gas sector

PERRY WILLIAMS supplies to LNG production in
WA, meaning many projects pay
BHP has cautioned the federal no PRRT.
government against hiking taxes With investment decisions
on the liquefied natural gas sec- due this year from BHP and
tor, warning any fiscal changes Woodside on Scarborough, and
might threaten a pending invest-
ment decision on its $US11bn next year from Woodside and
($16.4bn) Scarborough gas field four other partners on the long-
off Western Australia. stalled $US20.5bn Browse pro-
The Australian revealed fed- ject, there are signs the industry
eral Treasury was considering might use the mega projects as a
lifting taxes on Australia’s LNG bargaining chip to fight new tax
producers — now the largest ex- imposts.
porters of gas in the world — as Woodside has indicated it may
income from the 40-year-old tax give a green light to Scarborough
is forecast to fall by $450m over with less than half the LNG sold
the four-year budget estimates. under contract due to the corona-
Major producers are under- virus and oversupply in the mar-
stood to be considering a cam- ket.
paign to fight the tax move and BHP said it was also studying
BHP, which owns a 25 per cent contract levels for the project.
stake in the Woodside-operated
Scarborough field, on Tuesday $US Iron ore spot
said mooted changes to the pet- 120 price (62%
fines) last at
roleum resource rent tax could
$US80.15/
dim the commercial prospects for 110 tonne
the project.
Asked if there were any issues 100
ahead of a mid-2020 deadline to
approve the project, BHP chief
executive Mike Henry said the 90
petroleum tax was top of the list.
“The only one I would call out 80
is the PRRT. Clearly, if the PRRT
were to change in a way that in-
2019 20
creased the tax burden on the Source: Bloomberg
project, that’s going to weigh on
its attractiveness as an invest-
ment opportunity,” Mr Henry
said. “All of these projects need to
compete when it comes to our
capital allocation framework, so
probably enough said.”
Treasury is working on recast-
ing the tax, which has raised more
than $100bn since it started, be-
cause the industry has in large
part shifted from Bass Strait oil
19 Feb 2020
Sydney Morning Herald, Sydney
Author: Simon Crean • Section: General News • Article type : News Item
Classification : Capital City Daily • Audience : 74,348 • Page: 23
Printed Size: 276.00cm² • Region: NSW • Market: Australia • ASR: AUD 20,082
Words: 596 • Item ID: 1236127012
An energy evolution – from coal to hydrogen

But as Finkel rightly noted, the technical expertise to deliver
hydrogen is not a silver bullet. emissions-free energy. We have
Hydrogen will be but one part of willing private investment and
Simon what must be a multi-technology world-class universities producing
Crean innovative hydrogen technology.
energy future, including natural
gas and coal as bridging fuels. Our The death knell for coal could
gas and coal resources not only give herald the ascendancy of hydrogen
A
ustralia is a nation built
us a head start on hydrogen, they as our key national export. We need
on natural resources.
the political will to capture the
They have fortified our are crucial to an orderly transition. market. If we don’t, another country
economic growth and Hydrogen from coal, with carbon will. The time is now.
lifted our prosperity. They created capture, could bridge the divide
generations worth of jobs and between clean energy advocates Simon Crean is chairman of the
income for regional communities. and the resources sector. Australia-Korea Business Council, and
Australian coal has powered The transition will take decades a former minister in the Hawke,
Asia’s industrial development, but it but, in South Korea, hydrogen is Keating, Rudd and Gillard Labor
is now time that hydrogen launches already a reality. By 2040, hydrogen governments.
its future. Australia must be ready gas will account for 5 per cent of its
to capitalise on this opportunity. gross energy. Korea has begun to
The world – and our trading phase out coal and nuclear energy,
partners – are moving away from driven by a plan to attract
our national stalwart. investment and provide renewable
Countries are being forced to energy that by 2030 will account for
grapple with an environmental 20 per cent of electricity generation.
crisis that calls for lower emissions In Australia, we’re planning for
and cleaner economies. Australia is the shift. Our Resources Minister
in the same position and has woken met South Korean officials in
to the reality that it must November to promote our
decarbonise its energy supply to potential as a hydrogen supplier.
meet international commitments Hydrogen was the focus of a
and, in the longer term, decarbonise meeting between the Australia-
its minerals sector. Korea Business Council and Korea-
The transition from coal is an Australia Business Council in
evolution – not a revolution. Today, Sydney last year. Macquarie Group
we rely on it for electricity, jobs and has made substantial investments
revenue, and we will continue to do through the Asia Renewable
so for many decades to come. It Energy Hub in the Pilbara;
forms the basis of many of our Fortescue has partnered with the
strongest trade relationships. CSIRO to develop hydrogen fuel
Countries such as South Korea rely technologies; and Woodside is
heavily on coal to fuel industrial partnering with Korea Gas
growth. But governments around Corporation to study the feasibility
the world have begun positioning of a green hydrogen pilot project.
their countries for the transition, Hydrogen has broad bipartisan
and the governments that are best support. The Morrison
prepared are looking to hydrogen. government has opened public
Last week, Chief Scientist Alan consultations on a national
Finkel urged hydrogen as a major hydrogen strategy and Labor
energy solution for Australia. committed $1 billion in funding for
Hydrogen has 2.4 times the energy the Clean Energy Finance
of natural gas. It is abundant, Corporation for clean hydrogen
transportable and when produced development at the last election.
from water can become the linchpin We have gas networks that can
to Australia’s shift to renewable and switch to 100 per cent hydrogen and
low-carbon energy generation.
19 Feb 2020
Pilbara News, Pilbara
Author: Alexander Scott • Section: General News • Article type : News Item
Classification : Regional • Audience : 9,231 • Page: 11 • Printed Size: 93.00cm²
Region: WA • Market: Australia • ASR: AUD 242 • Words: 164 • Item ID: 1235772424
$16b offshore gas field a step closer

Alexander Scott ject, a joint venture between Petroleum Australia country
Woodside and BHP, is located manager Graham Salmond
A multibillion-dollar offshore about 375km west-north-west said Scarborough was consis-
gas development has moved a off the Burrup Peninsula and is tent with its petroleum strate-
step closer, with the project part of the Greater Scarbo- gy to invest in advantaged
moving to the feasibility study rough gas field. gas.
phase. The announcement comes “We will continue to work
BHP announced last week it after BHP and Woodside signed closely with Woodside so that
had moved to the feasibility a non-binding heads of agree- Scarborough delivers value for
study phase for the $16 billion ment in November for the toll- our shareholders, partners,
Scarborough gas resource. ing price for processing and the community,” Mr
It is the last phase required to gas from Scarborough at Salmond said.
finalise a proposal for a final Woodside’s Pluto LNG facility The first LNG is targeted for
investment decision. The pro- on the Burrup Peninsula. BHP 2024.
18 Feb 2020
Crikey.com.au, Australia
Author: Bernard Keane • Section: Current Affairs • Article type : News Item
Classification : National • Audience : 0 • Page: 1 • Printed Size: 0.00cm²
Region: National • Market: Australia • ASR: N/A • Words: 855 • Item ID: 1235907707
©Private Media, All Rights Reserved Page 1 of 3
Net zero emissions — a target big enough to cover a host of sins
Author : Bernard Keane
The climate target of net zero greenhouse emissions by 2050 is suddenly

fashionable.
The Business Council has signed up to it. A number of federal Liberals have
signed up to it. The NSW government joined Victoria in adopting it as policy
last year. BP recently adopted it. A number of countries, including the UK,
have signed up to it.
The coal fetishists in the Nationals are outraged about it.
The enthusiasm of big business and politicians should prompt some
scepticism about exactly what the target involves. And it's not at all clear.
That's the beauty of it, and why groups previously inclined to denialism are
now endorsing it post-bushfire.
The source of the target is the Intergovernmental Panel on Climate Change
(IPCC), which in 2018 warned that to avoid global temperatures rising by
more than 1.5 degrees, the world needs to cut emissions by 45% by 2030,
and to reach net zero by 2050. But there are a lot of questions.
The target must include all greenhouse emissions, not just carbon
emissions, so major, politically favoured but carbon-intensive sectors like
agriculture and aviation have to be included. New Zealand adopted the 2050
target but exempted methane, a key agricultural emission that is far more
damaging in greenhouse terms than CO2.
And combining emissions abatement and negative emissions technology
targets into a single target risks too much reliance on the latter -- remember
how long we've been told that carbon capture and storage was coming to
save us? And any carbon storage technology has a risk of failing and
releasing it -- think of how much stored carbon has been released by the
bushfires over summer.
Because the target is net, and because it's 30 years away, it also enables
powerful stakeholders to use it to promote their own interests under the
pretence of climate action.
That's the approach of the Business Council (BCA), which has done more
©2020 Private Media, All Rights Reserved.

18 Feb 2020
than any other major lobby group to sabotage real climate action over the
last decade.
The BCA is being given a free ride by the media currently because it has
coordinated business donations to bushfire-affected communities. Given the
fossil fuel giants that feature in the BCA's membership, this is a good
example of an arsonist offering a cup of water to his victims.
But look more closely at the BCA's version of net zero by 2050. Yesterday,
CEO Jennifer Westacott, continuing her goodwill tour of the media,
explained that net zero by 2050 would "require things like continuing our
LNG [liquefied natural gas] exports, continuing to unleash our incredible gas
reserves".
LNG of course is a major source of greenhouse emissions -- just not as bad
as coal. It's also far too expensive already to play a major role in electricity
production. But Origin Energy, BP, Shell, Woodside and Chevron are
members of the BCA, so Westacott's version of net zero includes a massive
role for a major fossil fuel.
Westacott's argument also complements Scott Morrison's huge handouts to
gas companies.
In the same interview, Westacott was asked why the BCA had opposed
Labor's adoption of the IPCC target of 45% by 2030. Her response was to
immediately question climate science. "You know there are debates about
that," she primly told Fran Kelly, who'd pointed out that target was also
driven by the science.
Westacott also sees a big role for "carbon capture storage, carbon storage,
carbon sequestration", despite the commercial failure of carbon capture --
but it's spruiked by big fossil fuel companies such as those in the BCA, as a
cover for continuing to emit high levels of greenhouse gases.
Others are using net zero to push nuclear power. Liberal backbencher Katie
Allen secured some media profile by backing nuclear power, saying "many
countries with a 2050 carbon-neutral target have nuclear somewhere in their
energy mix".
In Australia, backing nuclear power is a reliable indicator that you want
massive government intervention in the power sector and you're content to
wait the 15 years and 300% budget blow-outs that it would take to get a
nuclear reactor built -- if we already had an existing, large-scale nuclear

18 Feb 2020
industry.
Allen did what every advocate for nuclear power now does, with the
inevitability of night following day -- insisting that "new technology" of "small
modular reactors" made the criticisms obsolete (the "small modular
reactors" thing has been around for two decades and has been debunked
even by the nuclear industry itself).
Whether gas, carbon capture or nuclear, net zero by 2050 is likely to prove
as attractive to companies pushing their own commercial interests as it is to
politicians who want to appear to be doing something on climate change.
Meanwhile, what's the government itself actually doing? After its Santos
handout and its Collinsville handout, the government is now set to give $11
million to the company operating the Vales Point coal-fired power station,
which is owned by companies linked to former Nationals candidate and
power baron Trevor St Baker.
According to Australian Electoral Commission data, St Baker gave $34,000
to the Coalition in 2018-19 and $50,000 in 2017. $11 million makes for a
nice return on investment.

19 Feb 2020
Author: David Marin-Guzman • Section: General News • Article type : News Item
Item ID: 1236120896
왘 Coles underpaid $20m 왘 PwC to clock on, off
Managers
go back to
time sheets
David Marin-Guzman
Workplace correspondent
Coles has insisted all of its managers Woolworths or Qantas, when this pro- ees, when they will worry that
clock on and off when they work after cess is complete, penalties will be ines- underpayments could lead to lengthy
discovering they are owed $20 million capable, whether they are civil, jail terms.’’
in overtime as the supermarket giant criminal or of the type that we are now Coles had informed it of the
became the latest of dozens of busi- proposing with respect to director- underpayments ‘‘only moments before
nesses caught out for underpaying ships, banning and publicity,’’ he said. their financial results announcement’’
workers. But Australian Retail Association and the regulator would be investigat-
It is now under investigation after it head Russell Zimmerman said ‘‘coming the business, Fair Work Ombuds-
revealed yesterday that it had set aside plex awards were the cause of most man Sandra Parker said.
$15 million in backpay for hundreds of underpayments, and that despite the ‘‘Coles Group joins the growing list of
salaried managers at its supermarkets vast majority of retailers making every major corporates who have failed their
and liquor stores, plus $5 million in attempt to comply, the opacity of employees by withholding their lawful
interest and costs, as a result of awards made mistakes inevitable’’. entitlements when they should have
underpaying them over six years. He rejected the ‘‘apparent premise’’ measures in place to ensure that they
Coles chief executive Steven Cain Continued p10 do not,’’ she said.
apologised to employees who had been ‘‘I am calling on boards to seek assur-
‘‘unintentionally affected’’ and said the From page 1 ance from their chief executive officers
company was ‘‘working at pace with a that wages are being paid to employees
team of external experts to finalise our Managers to go back in accordance with the law. The buck
review’’.
It is understood the low-level man-
to time sheets ultimately stops with the chair.’’
Coles’ underpayments are the result
agers, paid between $60,000 and of the same issue that saw Woolworths
$80,000 a year, had their pay reduced underpay its salaried staff up to $300
of the government’s inquiries into so-
to below the minimum hourly rate as a million over 10 years.
called wage theft that retailers were
result of working long unpaid hours or Up to 600 salaried staff, out of a total
criminals.
penalty rate periods. 11,500, have been affected as well as
‘‘That might sell papers, but when
In a separate move, consulting firm unknown numbers of former employ-
Woolworths, Bunnings, Super Retail
PwC is also reviewing the pay of award- ees. However, Coles said the affected
Group, or non-retailers like Qantas or
covered employees, requiring its managers made up less than 1 per cent
the ABC have identified mistakes and
administrative staff to record their of its 115,000 workforce.
fixed them, it’s too simplistic and just
working hours, including start, finish Mr Porter, who is considering
wrong to accuse them all of ‘theft’.’’
and break times. powers to disqualify company direct-
The government’s proposal to
Industrial Relations Minister Chris- ors over underpayments, said Coles
criminalise underpayments would
tian Porter said underpayments had
‘‘undoubtedly act as yet another major and other large employers appeared to
become ‘‘endemic’’ in corporate Aus- barrier to employment’’, Australian have taken their eye ‘‘off the ball when
tralia and new punishments, including Industry Group chief executive Innes it comes to the basic obligation to pay
‘‘naming and shaming’’ notices and dir- Willox said yesterday. their staff’’.
ector disqualification, would make ‘‘Small business people in particular Mr Porter signalled he was also
penalties unavoidable. will be much less likely to take on their likely to give courts the power to
‘‘With organisations like Coles or first employee, or additional employ- require businesses to display a notice
19 Feb 2020
Author: David Marin-Guzman • Section: General News • Article type : News Item
Item ID: 1236120896
that they had underpaid workers.

‘‘My personal view is that if an
option is available in the context of
consumer law, which that option is,
then there is a good reason to suspect
that it should be a live and usable
option in the context of wage under-
payment, particularly when it appears
to be the case that this is now an
endemic problem in corporate Austra-
lia,’’ he said.
In the days before admitting the
underpayments, Coles sent out a
memo to salaried staff that ‘‘reinforced
the requirement for salaried team
members to clock in and clock out’’.
‘‘In reviewing this information we
have identified inconsistencies in
clocking patterns and salaried team
member ways of working,’’ the note
said, before suggesting it would review
rosters to improve ‘‘work-life balance’’.
When asked by The Australian Fin-
ancial Review on Friday and Monday
whether the note indicated Coles had
discovered underpayments, spokes-
man Blair Speedy said there was no
update and the memo was merely part Christian Porter: employers have taken their eye off the ball. PHOTO: RHETT WYMAN
of a regular roster review.
Shop Distributive and Allied
Employees Association national secret-
ary Gerard Dwyer, who worked closely
with Coles on its audit, said the super-
market chain had a policy of salaried
staff clocking on, but it had not been
strictly enforced.
‘‘When they started to dig down they
did have examples of people who had
got out of the habit of clocking on and
off because there is a bit of a mindset
when going onto salary ... people think
[wage] people on the agreement have
to do that, not me.’’
The issue of underpaid salaried staff
has beset a range of industries, includ-
ing top-tier law firms and George
Calombaris’ restaurant empire.
New rules which come into effect on
March 1 will require employers
covered by 20 industry awards to
record the hours of salaried staff and
conduct annual pay reconciliations to
guard against underpayments.
19 Feb 2020
Author: Tim Dodd Adam Creighton Jill Rowbotham • Section: General News
Words: 1195 • Item ID: 1236093950
INSTITUTIONS, REGULATORS BLASTED FOR DEPENDENCE ON CHINESE STUDENTS
EXCLUSIVE
$ virus hit
Top unis face $1.2bn The study concluded that more
than 40 per cent of education
TIM DODD exports to China — worth $12.1bn
ADAM CREIGHTON last year — could evaporate, even
JILL ROWBOTHAM if the coronavirus epidemic is con-
tained by June.
Ten leading universities face the “The rapid sustained revenue
loss of $1.2bn in fees from about growth of the last five years gave
65,800 students who are at risk of education service exporters ample
cancelling their first semester opportunities to build reserves in
courses because they are stranded preparation for a sudden down-
in China due to the Morrison gov- turn, even if they could not predict
ernment’s coronavirus travel ban. the precise form or timing of it,”
Exclusive analysis by The Aus- the paper found.
tralian of the Group of Eight uni- At least 170 Australians on the
versities — plus the University of disease-ridden Diamond Princess
cruise ship quarantined off Yoko-
Technology Sydney and RMIT —
has revealed that more than hama on the east coast of Japan
60 per cent of an estimated are expected to board a Qantas
109,000 Chinese students flight on Wednesday, after which
enrolled in first-semester courses they will be transferred for 14 days
are still in China. to Darwin’s Howard Springs facil-
The Australian National Uni- ity. The number of infected Aus-
versity — which has about 4000 of tralians on the cruise ship rose on
its estimated 5000 Chinese stu- Tuesday, with government sour-
dents stuck in China — is the first ces saying there were now more
Australian university to offer free than 30 cases on board the vessel.
online courses for those unable to Those Australians infected with
make it to campus by the end of the virus will be treated in Japa-
March as it seeks to navigate the nese hospitals instead of returning
coronavirus crisis. home, while about 20 more pas-
The figures capturing the sengers were on Tuesday night
potential impact of the virus out- preparing to refuse the govern-
ment’s evacuation offer.
break on the higher education sec-
tor come as top universities and The virus outbreak, which
their federal regulators face claims emerged in Wuhan province in
of negligence for having devel- early January, has resulted in
oped an excessive dependence on more than 1800 deaths and infect-
Chinese students. ed more than 73,000. In Australia,
The Centre for Independent the number of infections is still 15.
Studies, a free-market think tank, Scott Morrison extended a
has conducted an analysis show- China travel ban by one week last
ing the fallout from the epidemic week, as the government assesses
could wipe as much as $12bn from the economic damage of the virus.
the nation’s export earnings. Experts warn the economy could
The report’s author, Salvatore contract in the March quarter.
Babones, singled out the Tertiary Continued on Page 6
Education Quality and Standards
Agency for “massive failure” of
oversight and warned it was
“inherently risky” to build a
business around education
exports to citizens of “a totali-
tarian police state”.
19 Feb 2020
Words: 1195 • Item ID: 1236093950
Top universities face $1.2bn hit

Continued from Page 1
ANU has estimated that about “I can’t see a request for bail-
700 international students sched- outs on the horizon; we’re not at a
uled to commence courses this stage yet where we’re shutting
semester will be eligible to receive doors,” Ms Thomson said.
free online courses delivered She rejected the idea universi-
through a “hardship scholarship”.
Vice-chancellor Brian Schmidt ties were too exposed to China,
said the concession showed the arguing there was no “industry in
university was taking “a student- this country that isn’t reliant on
first approach” to the crisis. China as a major trading partner”.
“The No 1 goal is to keep as Education Minister Dan Tehan
many of our students as possible played down the prospect of bail-
engaged with their learning and outs, saying universities were
our community,” Professor “incredibly well run”.
Schmidt said. “They have very good univer-
The hardship scholarship will sity councils, and most of them
cover normal tuition fees for some have very, very good balance
650 subjects the university already sheets,” Mr Tehan said.
has available online. The CIS analysis puts total loss
The ANU’s March 31 deadline of export revenue this year arising
is judged as “the absolute cut-off from the coronavirus at up to
for students to be able to arrive on $12bn, or about 7 per cent of annual
campus and take classes without total exports to China, including
experiencing academic hardship”. $1.9bn in tourism, $3.8bn in edu-
Chinese enrolments at Austra- cation exports and $190m in pass-
lian universities have grown six- enger travel services.
fold since 2002 to almost 277,000 Resources exports to China —
as of last November, according to worth $94bn last year — would be
the findings of the CIS paper to be more resilient than services, the
released on Wednesday. study found. “Australia’s miners
The analysis from Mr Babones are accustomed to managing risk
found that Chinese students made and have well-developed tools for
up 29 per cent of all international minimising its effects, such as for-
enrolments, including 39 per cent ward contracts, commodities
of higher education enrolments. futures, and credit insurance. They
Twenty per cent or more of reve- also tend to hold substantial finan-
nues at the Universities of NSW, cial reserves,” Mr Babones said.
Sydney and UTS comes from Chi- He warned government
nese students. “The epidemic has against bailing out education pro-
hit at the worst possible time from viders or private businesses such as
the standpoint of university enrol- Qantas, arguing they should look
ments; students may miss an to private finance to make up any
entire semester while many may shortfall. “The public has no moral
never commence them at all,” Mr obligation to bail out these firms,
Babones said. which should have made appro-
“Taxpayers are likely to be priate provisions for such a crisis,”
called on to rescue their universi- he said. “Notwithstanding their
ties from the most dire financial reckless behaviour … it is likely
consequences of the coronavirus that universities and other edu-
epidemic, and perhaps to rescue cation institutions will lobby the
many private companies as well.” government to make good their
Vicki Thomson, chief executive losses on the argument the gov-
of Group of Eight, which repre- ernment gratuitously imposed a
sents the biggest research univer- ban on travel from China.”
sities, said the sector’s top focus
was on students and not the finan-
cial impact of the virus outbreak.
19 Feb 2020
Words: 1195 • Item ID: 1236093950
RISK TO AUSTRALIA’S TOP 10 EXPORTS TO CHINA COST TO UNIS

Minerals Low risk $94.2bn
$
$99 Estimated lost tuition fees if
Gold etc Medium risk $
$27.7bn stranded students go elsewhere
Fossil fuels Low risk $

$15.2bn Sydney $280m
$ m
Agriculture Low risk $
$10.6bn Monash $200m
$ m
Education High risk $
$9.3bn Melbourne $ m
$180m
Tourism High risk $
$4.3bn UNSW $ m
$140m
Chemicals Low risk $
$2.8bn Qld $ m
$140m
Manufactures Low risk $
$3.5bn
Machinery Low risk $1.5bn
Beverages Low risk $1.4bn
Source: CIS
How much unis will lose if all stranded students

cannot study in first semester/term of 2020
Estimated number Estimated number Estimated
of Chinese students of students stranded tuition fees lost
Sydney 21,000 14,000 $280m
Monash 19,000 10,000 $200m
Melb 15,000 9000 $180m
UNSW 15,000 10,000 $140m**
Qld 11,000 7000 $140m
ANU 5000 4000 $80m
UTS 8000 4000 $60m
RMIT 8000 4000 $60m
Adelaide 4500 3000 $55m
WA 2500 800 $15m
* UNSW has three terms not two semesters, meaning its loss is smaller than otherwise
19 Feb 2020
Author: Tom Rabe And Pallavi Singhal • Section: General News
Article type : News Item • Classification : Capital City Daily • Audience : 74,348 • Page: 1
Words: 622 • Item ID: 1236135010
NETWORK STRESS
Huge hike
in public
transport
numbers
EXCLUSIVE
Tom Rabe and Pallavi Singhal
port expert Mathew Hounsell said
Growth on the state’s public trans- the figures reinforced the need for
port network has hurtled past the government to invest more in
long-term government predic- the rail and bus network. ‘‘There is
tions, with 93 million more trips
taken on buses and trains last year no plan to deal with this level of
than what was forecast for 2031. growth,’’ he said. ‘‘What we’re now
A report used by the NSW gov- seeing is there’s a lot more growth
ernment as the ‘‘framework’’ for above what’s forecast.’’
investing tens of billions in trans- Meanwhile, peak-time passen-
port projects over the coming dec- ger numbers reached levels that
ades predicted rail growth would can slow down services on nearly
increase by 26 per cent between all metropolitan train lines last
2011 and 2031. year. Trains on six out of 12 sub-
However, the rail network urban lines reached their capacity
reached and then exceeded that during the morning peak in March
predicted figure by 2017, more 2019, according to Transport for
than a decade early. NSW’s latest data.
The projection in the 2012 report All lines except the Central
for bus growth was also reached 13 Coast and Newcastle via North
years early. Last year, the number Shore routes experienced num-
of bus trips was 54 million higher bers at which ‘‘customers start to
Continued Page 7
than the forecast.
University of Technology trans-
19 Feb 2020
Author: Tom Rabe And Pallavi Singhal • Section: General News
Words: 622 • Item ID: 1236135010
Huge surge in use of city’s

public transport network
From Page 1
experience crowding and dwell times can on the North Shore line, which jumped 37
impact service on-time running’’, for ser- per cent, and the T5 Cumberland line, which
vices arriving at Central Station between increased by 10 per cent.
8am and 9am. The government has added an extra
Asked how it would respond to the pat- 43,000 services to weekly public transport
ronage, the state’s transport agency said it services since March 2011.
was ‘‘delighted’’ that demand was outpacing Opposition transport spokesman Chris
population growth. ‘‘[The growth] is also a Minns said the acceleration in commuters
result of more frequent rail services and the was concerning because the government
completion of a new Metro Line,’’ a Trans- was ‘‘hitting the end’’ of its funded public
port for NSW spokesman said. transport infrastructure plans ‘‘at exactly
He said the government was spending the wrong moment for the growth of the
more than $55 billion on major transport city’’.
projects over the next four years, including Train and bus trips
the WestConnex motorway, metro rail lines versus predictions
and the Parramatta light rail. 780 million Actual
‘‘The NSW government is delivering the
largest transport infrastructure program 720
this nation has ever seen,’’ he said. 660 Prediction
While a public transport masterplan, Prediction
600 for 2031 trend
Future Transport 2056, was released in
2018, Transport for NSW said that report 520
had no equivalent growth projection to that 2011 2019
in the earlier report. SOURCE: TRANSPORT FOR NSW
Patronage on public transport grew by
5.3 per cent in 2019 alone, far above that of
the population, which Mr Hounsell said in-
dicated a behavioural shift in the com-
munity. ‘‘There needs to be significant in-
vestment in the heavy rail system to cope
with the increase in demand and changing
habits. The Bankstown Metro won’t ad-
dress these problems,’’ he said. ‘‘There’s no
technical issues, it’s just a matter of the
politicians investing where they need to, not Patronage of
where they think there’s more votes.’’ Sydney’s rail
Mr Hounsell said simple improvements to system is far
the city’s traffic light network, bus stops and exceeding
routes would have an immediate impact on forecasts.
the network, as well as other ‘‘low-hanging Photo: Peter Rae
fruit that doesn’t get a ribbon-cutting
ceremony’’.
He added the rapid growth on the net-
work indicated that when the government
invested in transport infrastructure, it was
utilised. ‘‘If you provide high-quality public
transport, high-frequency public transport,
people use it,’’ he said.
The biggest growth on the network came
19 Feb 2020
Age, Melbourne
Author: Adam Carey Madeleine Heffernan • Section: General News
Printed Size: 554.00cm² • Region: VIC • Market: Australia • ASR: AUD 34,092
Words: 808 • Item ID: 1236121930
ST KEVIN’S FALLOUT
Watchdog
to review
school on
abuse risk review of the school’s handling of
Adam Carey child abuse risks.
Madeleine Heffernan The review follows reports on
Victoria’s education watchdog will Monday that a long-serving
review whether St Kevin’s College St Kevin’s volunteer athletics
has breached state-imposed stand- coach was convicted of grooming a
ards for managing the risk of child 15-year-old student in 2015.
abuse in schools, following dam- Mr Andrews was also critical of
aging revelations about its handling the school’s response, intimating
of a volunteer coach’s grooming of a headmaster Stephen Russell’s
student. decision to give the convicted
The review follows damning groomer a reference in court
comments by Victorian Premier would not be tolerated if he was a
Daniel Andrews suggesting the state school principal.
school had failed to live up to its ‘‘I think it’d be hard to have con-
rhetoric about having children’s fidence in him,’’ Mr Andrews said.
safety at heart. ‘‘But they’re not at a govern-
The regulator will investigate ment school, they’re at a Catholic
whether the high-fee Catholic school.’’
boys’ school has met the legal Mr Andrews said the school’s
requirement to embed a culture of response was ‘‘just not on’’.
‘‘no tolerance’’ for child abuse and ‘‘It’s one thing to say that you’ve
if it complies with seven child got a zero tolerance to child sexual
safety standards brought into law abuse, to grooming, to any of this
in Victoria in 2016. completely inappropriate beha-
Education Minister James Mer- viour,’’ he said yesterday.
lino confirmed the Victorian Regis- ‘‘It’s another thing to actually
tration and Qualifications Authority demonstrate that.’’
had advised the St Kevin’s College Mr Russell and the school’s dean
board of management, Edmund of sport, Luke Travers, each
Rice Education Australia and the provided Peter Kehoe with
Catholic Education Commission of
Continued Page 6
Victoria that it would open a specific
19 Feb 2020
Age, Melbourne
Words: 808 • Item ID: 1236121930
Watchdog to review school on abuse risk

From Page 1
references during his trial, which haviour of Mr Travers in his letter
followed a complaint by then- to parents.
year 9 student Paris Street, who ‘‘The conduct of Mr Travers in
was coached by Kehoe. 2015 was absolutely unaccept-
Mr Merlino said the reports able,’’ he wrote.
were ‘‘very concerning and if I The college ‘‘took formal steps
were a parent of a student at the in regard to Mr Travers’ conduct’’,
school, I would be demanding he said.
answers’’. The Age asked the school what
‘‘Nothing is more important formal steps were taken, but did
than the safety of children; that’s not receive a response.
why we have introduced Child Safe Mr Russell also said in his letter
Standards and mandatory report- to parents that complaints against
ing,’’ he said. two current teachers at the school
All Victorian schools must adhere were under investigation, but he
to seven child safety standards to be stressed that ‘‘from a child safety
registered. perspective no child is at risk’’.
They include: having strategies The headmaster addressed the
to embed an organisational culture students at an assembly yesterday
of child safety; screening, supervi- morning, where it is understood he
sion and training practices that told the boys of St Kevin’s they
reduce the risk of child abuse; would be applauded if they came
procedures for responding to and forward – as former students Mr
reporting suspected child abuse; Street and his friend Ned O’Brien
and strategies to promote child did – to report alleged grooming.
participation and empowerment. St Kevin’s College staff have
Mr Russell expressed regret on been rostered on to chaperone
Monday for penning the ‘‘limited, students as they ride to and from
factual’’ reference for Kehoe, but school by public transport this
also stressed that Kehoe had week.
stopped acting as a volunteer The Four Corners story sparked
coach for the school at the time of a strong response, with some for-
his offending. mer and current parents question-
‘‘Mr Kehoe was banned from the ing the school’s governance and
college as soon as we were made calling on the headmaster to stand
down.
aware of his charges and his Work- But in an apparent show of sup-
ing with Children check was port for the school, some former
cancelled,’’ Mr Russell said in a students wore their St Kevin’s ties
letter emailed to parents soon around the CBD and suburban
after midnight. Armadale yesterday.
Mr Russell said the school ‘‘took St Kevin’s charges more than
formal steps’’ in response to Mr $21,000 to educate year 12 stu-
Travers’ support for Kehoe. dents and is believed to have the
When asked in court if it was longest waiting list in Victoria.
acceptable for a teacher or coach Edmund Rice Education Austra-
to text a student ‘‘I love you’’ or lia, which directs St Kevin’s College,
‘‘kiss kiss kiss’’, Mr Travers did not respond to repeated re-
responded that ‘‘it depends on the quests for comments.
context’’, ABC’s Four Corners re- With Chloe Booker
ported on Monday.
Mr Russell condemned the be-
19 Feb 2020
Age, Melbourne
Words: 808 • Item ID: 1236121930
St Kevin’s has been criticised by Premier Daniel Andrews. Photo: Pat Scala
19 Feb 2020
West Australian, Perth
Author: Peter Law • Section: General News • Article type : News Item
Printed Size: 408.00cm² • Region: WA • Market: Australia • ASR: AUD 7,153
Words: 344 • Item ID: 1236156679
EX
XCLUSIV
XCLUSSIV
IV
VE W
Why
hyy yo
yyour
our sslab’s
la
lab
ab’s
ab’
b’s
’s about
abbout to go up by $44
BITTER &
TWISTED
PETER LAW
The price of a block of beer
will increase by almost $4
when WA’s cash-for-containers
added to its wholesale pricing
from June 2.
It will in-turn be passed on by
go
&
scheme begins in June. shops to drinkers but neither
The cost of running the brewers or retailers were this
program will add 12.53¢ a can week able to say what impact it
would have on prices.
and 13.02¢ a glass bottle, includ- Calculations by The West
ing GST, which will be paid
by brewers and soft drink Australian suggest that if the
suppliers. extra cost was passed on in full,
Lion — which owns Emu the price of a 30-can block of
Bitter, Emu Export, Swan Emu Export would rise by
Draught and Little Creatures $3.75, from about $50 to $53.75.
D
— confirmed the cost would be For bottled beer, an extra $3.13
CONTINUED PAGE 5
19 Feb 2020
Author: Peter Law • Section: General News • Article type : News Item
Words: 344 • Item ID: 1236156679
Why your block of beer is about to go up $4

FROM PAGE 1 our wholesale pricing from
would be added to the cost of 2 June, 2020. Retail pricing
a 24-bottle carton. is determined by individual
Drinkers will be able to retailers.”
claim a 10¢ refund for each Lion and Coca-Cola
empty container they take to Amatil are involved in WA
one of 172 collection points. Return Recycle Renew Ltd,
For example, a 24-bottle which was appointed by the
carton is worth a refund of State Government to run
$2.40. But other States which the scheme.
WARRRL chief executive
already operate the initiative
have found some containers Tim Cusack said it would be
are never returned. a decision for each supplier
“As in other jurisdictions to determine to what extent
where a container deposit the cost was passed on to
scheme exists, Lion has com- customers.
mitted to only pass through Liquor Stores Association
the costs of the scheme that of WA chairman Lou Spag-
we are required to bear nolo said there would be a
under the CDS,” Lion said. “small but necessary incre-
“This will be reflected in ment . . . in order to fund this
worthwhile scheme”.
19 Feb 2020
Author: Phillip Coorey And Mark Ludlow • Section: General News
Words: 651 • Item ID: 1236114336
Liberals hope
tech plan will
sideline coal
Phillip Coorey and Mark Ludlow Yesterday Mr Morrison again indic- to pick winners,’’ she said.
ated it was unlikely the government ‘‘Currently, what we have is techno-
Liberal MPs believe a technology road
would pledge a target of net zero emis- logy targets in the form of large, state-
map to be released next month will
sions. based renewable energy targets, but
sideline pro-coal Nationals and enable
‘‘Currently, no one can tell me that these can’t provide the necessary
Australia to reach zero net emissions
going down that path won’t cost jobs, broader clarity for the energy market.’’
by 2050, all without having to mandate
won’t put up your electricity prices, and Clean Energy Council chief executive
the target.
Kane Thornton said despite the lack of
As Scott Morrison ramped up his won’t impact negatively on jobs in the
detail on the government’s plan so far,
reluctance to follow the United King- economies of rural and regional Aus-
a technology target would provide
dom and pledge net zero emissions by tralia,’’ he said.
some much-needed direction.
2050, moderate MPs in his ranks said ‘‘We favour technology over taxa-
‘‘The Renewable Energy Target
the ‘‘road map’’, flagged by the Prime tion.’’
provided a clear ambition for the levels
Minister last month, could achieve the Business and clean energy groups
of deployment of renewable energy by
same result if designed correctly. cautiously welcomed the concept of a
2020, and a technology target could
Speaking on condition of anonymity, road map.
help fill the policy void and provide
they believed the road map should While the Business Council of Aus-
investors and the industry with a sense
include goals for certain technological tralia said its preference was still for a
of ambition and direction for the
advances, such as a date by when a cer- market-based carbon price to encour-
energy transition,’’ he said.
tain percentage of new cars sold should age investment, it said technology
be electric. would be the driver to a net-zero emis-
They acknowledged this was tricky sions future. Key points
given Labor took an electric vehicle Moderate MPs think
policy to the last election and was In its energy and climate scoping
attacked by Mr Morrison and the Coali- paper released last month, the BCA technology could avoid the
tion’s media allies. outlined the challenges ahead, saying need for emissions targets.
more than $22 billion a year in new Rebel pro-coal Nationals
Divisions in the Coalition over cli- investment would be needed to reach
mate change are so strong that Mr net zero emissions by 2050.
could be left ‘having
Morrison and other Liberals will not Renewable investment, which is yesterday’s discussion’.
use the term ‘‘target’’ for fear of riling already at record levels, would need to
the Nationals and some Liberals who double to reach AEMO’s forecast of 30
do not believe in climate change. gigawatts of new renewables by 2040
Rebel Nationals led by Barnaby and an additional five to 21 gigawatts of
Joyce and Matt Canavan are pushing a firming capacity.
pro-coal agenda and are vehemently ‘‘This replacement capacity will not
opposed to any 2050 emissions target. be built by the National Electricity Mar-
Liberals believe a road map contain- ket without the introduction of major
ing sufficient goals for clean energy policy reforms,’’ the BCA said.
technology would be ‘‘the best way to Australian Energy Council chief
go around Canavan and Barnaby’’. executive Sarah McNamara said tech-
‘‘They would be left in the rear-view nology would play an important part in
mirror having yesterday’s discussion,’’ reducing Australia’s emissions, and it
said one. had to be a national strategy.
The government will take a 2050 ‘‘The ideal way to ensure that is to
emissions ‘‘strategy’’ to the next inter- have policies in place that encourage
national climate change conference in the market to decide which technolo-
Glasgow at the end of this year. gies are best suited to reducing emis-
sions at lowest cost, rather than trying
19 Feb 2020
Author: Phillip Coorey And Mark Ludlow • Section: General News
Words: 651 • Item ID: 1236114336
Nationals MP Barnaby Joyce is pushing a pro-coal agenda. PHOTO: ALEX ELLINGHAUSEN

19 Feb 2020
Words: 529 • Item ID: 1236116680
Producers reject call

for greater intervention
Angela Macdonald-Smith
to about $8 a gigajoule, based on supply
East coast gas producers have seized on from the Queensland hub at Wallum-
the competition regulator’s latest billa, with a premium above that for
report to argue against further govern- transport to the south or depending on
ment intervention, noting the increase the allocation of risks on delivery.
in flows to the domestic market. ‘‘Today you’re not talking nines,
They said the Australian Competi- you’re certainly not talking 10s and 12s
tion and Consumer Commission’s [dollars a gigajoule],’’ they said.
report, released yesterday, showed But Andrew Richards, head of the
prices had eased in the local market as Energy Users Association of Australia,
the Queensland LNG exporters in par- said the picture was different further
ticular made significant volumes of south, which lacked the benefit of the
additional gas available to local users. Queensland government’s domestic
But the government and the ACCC gas acreage policy that had brought
also took gas producers to task for not new suppliers into the market and
lowering prices in line with softening spurred competition.
export equivalent prices, something Offers of firm supply in Victoria, for
manufacturers complain about. example were still ‘‘$10 plus’’, Mr
The ACCC found prices offered to gas Richard said, echoing calls from the
buyers on the east coast have remained federal government, the ACCC and the
in the range of $9-$12 a gigajoule and Australian Petroleum Production and
have not reflected the sharp softening Exploration Association for state
in LNG export prices, putting more moratoria to be lifted on onshore gas.
manufacturing plants at risk of closure. He said the longer term view of gas
The LNG ‘‘netback’’ price – a meas- supplies for the southern states ‘‘is
ure of the price a supplier could expect starting to look even more shaky’’ as
to receive for exporting its gas – has reserves started to run out, pointing to
sunk to $3.85 a gigajoule for March, the need for several new sources of gas,
down from over $9/GJ a year earlier, including Santos’ Narrabri project and
according to the ACCC’s data. AGL Energy’s proposed LNG import
The regulator is pointing to forward terminal in Victoria.
‘‘netback’’ prices remaining below ‘‘There’s no time to take our foot off
$5/GJ through to October as the Asia the pedal on reform; there’s a lot more
LNG market is swamped with supply we need to do,’’ Mr Richards said.
and demand is eroded by a warm The ACCC also raised lingering con-
northern winter and the coronavirus. cerns about gas transportation costs,
However, one gas industry source even after recent reforms, including the
took issue with the comparison inability for industrial energy users to
between netback prices and offers of access pipelines in regional areas and
firm contract prices on the east coast some price increases.
given the risks that suppliers take on Asked to respond, Rob Wheals, man-
with their field reservoirs and with con- aging director of the biggest gas pipe-
tract delivery commitments. line owner APA Group, pointed to its
The source said prices for firm sup- record of engaging with customers to
plies had come down over the past year find solutions for gas transportation
contracts that they are happy with.
AFRGD1 A031
19 Feb 2020
Author: Perry Williams • Section: General News • Article type : News Item
Item ID: 1236083084
Gas in reserve ‘could rein in prices’

a competitive edge, but it hasn’t,” Santos, Origin Energy and Shell,
PERRY WILLIAMS he said. “Instead, our international stand to be impacted by the new
competitors are getting our gas at reservation policy. The govern-
Australia’s big energy users are cheaper prices than we get our gas, ment has also committed to retain
still paying high prices for dom- and that’s unacceptable.” the Australian Domestic Gas
estic gas supplies, triggering The reservation scheme would Security Mechanism until 2023.
renewed calls from Centre see the east coast replicating a sys- The scheme can direct
Alliance senator Rex Patrick for a tem similar to that in Western Queensland LNG exporters to
reservation scheme to be rolled Australia to provide relief for big divert supplies to the local market
out on the east coast. gas users still struggling with high if a shortfall is forecast for the fol-
The consumer watchdog tariffs. WA’s regulations require lowing year. It was created as a
warned on Tuesday that high gas 15 per cent of gas reserves at LNG response to tight domestic sup-
prices were forcing factories to export projects to be set aside for plies on the east coast and reduced
shut and companies to go into liq- use within the state. The govern- production from the offshore Bass
uidation. It said domestic tariffs ment in January said it would be Strait fields in Victoria, but has not
had not fallen despite a continued “mindful” of the contribution yet been triggered since it was
decline in international LNG pri- LNG exporters in Queensland had introduced in July 2017.
ces this year. already made to ensuring dom- While the government said the
Senator Patrick — who wran- estic energy security when setting ADGSM had helped in halving gas
gled a commitment from the state-by-state policies. prices to $10 a gigajoule from more
Coalition to roll out a reservation “As the national reservation than $20 a gigajoule in early 2017,
scheme in exchange for his sup- policy is designed, we need to it has recommended a number of
port of the government’s personal ensure that we don’t have a situ- changes following a formal review
income tax cuts package — said he ation where cheap Australian gas of the mechanism. The competit-
was disappointed local gas prices is sold for export and expensive ion regulator’s forward LNG net-
remained high. “Australia has an Australian gas is reserved for sale back price will now be part of
abundance of gas. That should to the local market,” Senator Pat- deliberations when the govern-
translate into lower energy costs to rick said. ment determines if there is a case
Australian businesses to give them Big LNG exporters, including to trigger the export mechanism.
19 Feb 2020
Author: Paul Kelly • Section: General News • Article type : News Item
Item ID: 1236083819
PM MUST FIND SWEET SPOT BETWEEN

SCIENCE AND POLITICS
Scott Morrision faces global and domestic
pressure to reinvent his prime ministership
PAUL KELLY
EDITOR-AT-LARGE
The coming epic clash over net- political betrayal and a violation of long-term goal, provides scope for
zero carbon emissions reduction the Prime Minister’s emphasis on durable policies to ensure emis-
targets by 2050 is not just about sticking by his mandate. sions are cut from every sector.
the economy and climate change; In this context, the bushfires This 2050 goal is transforma-
it is about Australian democracy in tional for Australia and the world.
have a global significance. Abroad If embraced, it will dominate the
an age of globalisation and univer-
their impact is exaggerated to economic reform agenda for years.
sal climate threat.
pressure Australia as a fossil fuel Economic logic says the goal must
Nobody knows the full ramifi-
power to break from its alleged un- dictate a carbon price, but neither
cations of this commitment. There
sustainable past. At home, the Liberal nor Labor will buy that.
is no precedent for Australia and
bushfires are recruited by the cli- This makes the transition more
the world using a scientifically
mate change lobby to argue public problematic and unpredictable.
based projection of temperature
opinion has changed so Morrison, Announcing a target is easy;
consequences as a trigger for a
if he stays firm, is out of touch and, devising the policies to get there is
massive reconstruction of dom-
if he changes, he concedes the folly hard. The story so far, as the UN
estic and global energy markets.
of recent Coalition policy. points out, is that many nations
But this is the demand in a glo-
The critical feature of the Aus- signing up have no plan to achieve
balised age. Boris Johnson wants
tralian debate recently is the esca- the target. Westacott said what
every country to outline its plan to
lation of pressure from major really matters is how to get there.
achieve net zero in Glasgow this companies and CEOs for action The BCA says: set the target first,
year. UN Secretary-General An- on the 2050 target. This is mir- then sort out the mechanism. Its
tonio Guterres said the planet was rored in the upgraded stance of the concern is that without the target,
“edging closer to the point of no Business Council of Australia with the multinationals and investment
return” and governments must de- its chief executive, Jennifer Westa- community won’t put the funds
liver “transformational change” at cott, saying Australia must be- into the new technologies the
Glasgow. If leaders dithered then come a “clean energy superpower” Morrison government talks about.
“we are doomed”. and that it was time to move be- The politics of this are global,
This is the language of climate yond the damaging political con- not just domestic. They are a func-
emergency generating a unique flict over the past decade. tion of the globalised world of flex-
coalition of support — from the But the transition pathway is ible capital and the search by
EU, global finance, corporate undefined and unplanned. West- multinationals to win public re-
CEOs, progressive politicians with cott and the BCA scoping paper spect by tying their brands to envi-
their Green New Deals, state gov- make clear the task now is to de-
ernments in Australia and activists vise a plan for how “the Australian ronmental idealism. The problem
demanding more urgent action. economy most effectively and for the Morrison government is
It is nine months since the elec- efficiently delivers growth while not Labor. The deeper problem is
tion but Scott Morrison is under achieving net-zero emissions”. For being boycotted by global capital
pressure to abandon the climate the BCA, the advantage of the and marginalised post-Glasgow.
change policy he took to it and 2050 target is that it shifts the poli- Morrison yesterday toughened
commit to net zero by 2050, a re- the test for whether to embrace net
versal that many would see as a tical debate away from the disput- zero by 2050. The government is
ed 2030 targets and, by offering a assessing what this pledge would
19 Feb 2020
Author: Paul Kelly • Section: General News • Article type : News Item
Item ID: 1236083819
mean for the economy. “No one world’s largest emitter, continues
can tell me that going down that constitutes a fusion of global and
its course of emissions expansion? domestic politics. Morrison wants
path won’t cost jobs, won’t put up The UN report says only “rapid
your electricity prices and won’t to lift his credibility on climate ac-
and transformational” action will tion but not at the expense of jobs
impact negatively on jobs in the do the job. The certainty for Aus-
economies of rural and regional and prices. But such double goals
tralia is that “transformational” don’t compute. In this decision,
Australia,” Morrison said. policy is high-risk politics.
These are defining comments Morrison faces global and dom-
This is a huge challenge not just estic pressure to reinvent his prime
and may be the most significant for for Morrison but for the business
Morrison since the election. The ministership, but that may come
community. Do CEOs appreciate with the stamp of electoral doom.
point is that nobody can give Mor- the magnitude of the task they
rison such a guarantee. If this is the have set themselves and how dif-
test Morrison imposes, the result ferent drafting a national transi-
seems obvious. In an earlier gener- tion strategy is from a plan for their
ation, leaders talked of winners own company?
and losers and compensating los- In this project, every household
ers. But the structural and price and business will be affected. The
changes in this instance seem too people most vulnerable in the
immense, even given that the tran- transition will be those on welfare,
sition may be in the national inter- those on low or low to middle in-
est. This penetrates to the comes, those in the regions and
enduring conundrum in climate connected to the coal economy,
change politics: can the short to mining and manufacturing.
medium-term pain be accepted by As the election revealed, Aus-
leaders and the public for the long- tralia is already a fractured coun-
run dividends? The related issue try and many of these people,
for Morrison is that the Paris alienated by technological change,
Agreement, so far, is failing. The green ideology, feelings of power-
reality is that 2050 targets are lessness and being lectured to by
being imposed because the short- elites, may enter a new threshold
term targets are not being met. of resentment when faced with
The UN Emissions Gap Report “transformational” step-ups on
for 2019 says: “There is no sign of climate change. The risk is the
greenhouse gas emissions peaking 2050 project ends up resembling a
in the next few years. Every year of crusade driven by elites in terms of
postponed peaking means that income, education, power and in-
deeper and faster cuts will be re- fluence — guaranteeing a serious
quired” to meet the scientifically backlash from many Australians.
determined goal of limiting global The idea of a 2050 net-zero
warming to below 2C and 1.5C. commitment would initially be
The gap between what the sci- popular, winning huge elite sup-
ence demands and what govern- port. But this could be a trap. Re-
ments pledge is too large, such that member the Rudd-Gillard years.
today’s national pledges need to be How long would it last when the
increased threefold to meet the transition plan and costs were re-
temperature targets. The prospect vealed? Would vision and the win-
of this is remote. ning interest groups carry the day?
At the same time, emissions re- Perhaps. But the politics would be
straint by rich nations is easily out- dangerous for Morrison. Labor is
paced by emissions expansion expected to endorse the target.
from the developing world, China The Coalition with the Nationals
and India, with many developing could be imperilled as it would
nations investing in coal-fired trigger a populist revolt on the
power plants that will run for dec- right Morrision could not control.
ades. Morrison has identified the The government is right to
problem: what does he say to Aus- ramp up a technology agenda, but
tralians asked to accept higher tar- it’s no substitute for action on tar-
gets that cannot on their own slow gets. The climate change issue
global warming when China, the
19 Feb 2020
Section: Editorials • Article type : Editorial • Classification : National • Audience : 94,448
Page: 13 • Printed Size: 303.00cm² • Region: National • Market: Australia
ASR: AUD 6,715 • Words: 797 • Item ID: 1236084983
FOR THE INFORMED AUSTRALIAN
Markets, technology key

to low carbon transition
Creative entrepreneurs should capitalise on opportunities
In its scoping paper on energy and well under way. Coal-fired power Northern Territory to other states.
climate change policy, the Business generation in advanced economies A crunch point on carbon is coming,
Council of Australia — the voice of declined by nearly 15 per cent last year, with moves afoot for a new climate
more than 100 of the nation’s largest causing big falls in emissions in the US, change plan to impose net-zero
corporations — argues that the Europe and Japan, as Graham Lloyd emissions by 2050 on participants at
economy’s energy transition needs to wrote a week ago. That decline offset the UN climate summit in Glasgow in
be driven by technology that “will not emissions rises in developing countries, November. Scott Morrison’s instincts
only get us to a net-zero emissions where more coal-fired power stations to avoid signing up to such an erosion
future but will also create new jobs, were built. The changes in advanced of national sovereignty are right and
opportunities and industries, and economies were driven by an reflect the outlook of most Australians.
maintain Australia’s competitiveness”. increasing switch from coal to gas, wind Like the BCA, The Australian has long
With healthy profits to be made from and solar energy, and the restart of supported a price on carbon and
harnessing technology to deliver nuclear generation. The IEA said trading emissions permits as the path to
affordable, reliable power, energy natural gas produced more electricity least-cost abatement. But more than a
entrepreneurs, including companies than coal for the first time ever and decade of poisonous politics and false
represented by the BCA, should take wind-powered electricity almost starts precludes that option for now.
the long view, lead the way and invest. matched coal-fired electricity. As the Morrison government
Those with the vision and flair to do so The growing importance of gas in recognises, technological advancement
would find no shortage of overseas advanced economies overseas will be essential to significant carbon
partners to inject capital in viable underlines the economic and abatement. The question of who will
projects, as coal and other resource environmental irrationality of NSW pay — taxpayers or industry — is
industries have done for generations. holding up the Santos Narrabri gas critical. Aside from budgetary concerns,
Based on calculations by the EU, the governments picking winners has a
BCA paper argues new investment of at project for almost 10 years and Victoria disastrous history in Australia; look no
least $22bn will be needed every year banning all gas exploration. Geoscience further than the tens of billions of
until 2050 to deliver net-zero Australia estimates Victoria has dollars handed to car manufacturers for
emissions. To put the figure in potentially recoverable resources of decades. Subsidies for renewable
perspective, the Snowy 2.0 pumped shale and tight gas onshore to meet 40 energy have already cost taxpayers and
hydro project proposes to spend about years of east coast domestic demand. consumers billions of dollars. At a time
$5bn across five years. The BCA report notes that gas will be when many renewable schemes are set
That is a tall order. But if a an important transition fuel in to wind up, demands for cutting
sustainable transition to lower and electricity production, as backup to emissions are increasing and the
ultimately zero emissions is to be renewable power generation. The BCA Victorian moratorium on conventional
achieved, investment and market says development of new fields in gas exploration is due to end in June,
efficiencies — rather than taxpayer- Victoria, the Northern Territory and technological advances and markets
funded subsidies and centralised the Cooper Basin should occur. In offer the business sector an important
decision-making — will get us there. response to the Australian Competition opportunity to capitalise on
The vexed question of new coalmines & Consumer Commission’s warning Australians’ demand for cleaner,
and coal-fired power plants, for that high gas prices are forcing factories affordable energy. Governments must
example, would be best resolved not on to shut and companies to go into help create the conditions by way of
the whims of politicians but on liquidation, recalcitrant state infrastructure and minimising red and
technological progress with carbon administrations should remove their green tape. The momentum for
capture and storage and whether banks restrictions to open the way for an sustainable, greener energy needs to
and investors support them financially. expansion of private investment in the come from business and markets. They
Investment in renewables and gas sector. The role of government, as the should get on with it.
should be encouraged by new figures ACCC said in its report released on
from the International Energy Agency Monday, is to provide infrastructure to
showing clean energy transitions are move gas from Queensland and the
19 Feb 2020
Northern Territory News, Darwin
Section: Business News • Article type : News Item • Classification : Capital City Daily
Audience : 11,279 • Page: 24 • Printed Size: 84.00cm² • Region: NT • Market: Australia
ASR: AUD 505 • Words: 147 • Item ID: 1236125077
Investment
a must for
gas supply
THE Australian Competition
and Consumer Commission’s
Gas Market Inquiry 2017-2025
report confirms actions taken
by the gas industry to bring
more gas into the domestic
market have ensured current
domestic supply, but more in-
vestment and development is
required to maintain that sup-
ply in the medium-term, the
Australian Petroleum Pro-
duction and Exploration As-
sociation said yesterday
APPEA CEO Andrew
McConville said the ACCC re-
port showed the industry had
increased substantially the
flow of natural gas to the east
coast domestic market and this
would continue into the future.
“The ACCC finds that pri-
ces have eased since early 2017,
with producers – particularly
liquefied natural gas producers
– making significant volumes
of additional gas available to
the local market,” Mr McCon-
ville said. “More recent data
shows prices continuing to
head down.”
The 2018 agreement be-
tween LNG exporters and the
Australian Government en-
sures any uncontracted gas is
offered domestically first.
19 Feb 2020
Author: Sarah Ison • Section: Business News • Article type : News Item
Words: 513 • Item ID: 1236159212
Coronavirus, jobless data key to rates cuts
Picture: bloomberg
Bank seeks uptick

SARAH ISON
The Reserve Bank of Aus- tember quarter, pointing ly going through a the effect of the virus, the
tralia is still hoping for an to the flow-on effect from “trough”, following the RBA remained optimistic
“uptick” in mining positive global impacts. completion of numerous mining investment would
investment despite con- “The easing in trade soon “pick up” again and
cerns about coronavirus tensions between the US projects in the past few
support GDP growth.
disrupting Chinese and China, and ongoing months.
The RBA said it was
demand for commodities stimulus delivered by “Mining investment
“too early” to determine
like iron ore and oil. central banks, had sup- had been considerably
the full impact the virus
Minutes from this ported a modest improve- lower because work on
would have on markets.
month’s meeting of the ment in the growth new liquefied natural gas
“Members discussed
RBA board yesterday outlook for a number of plants had continued to
the coronavirus out-
revealed quiet optimism economies,” the minutes wind down,” the minutes
break, noting that it was a
on the back of the Austra- said. read.
new source of
lian economy growing The RBA noted mining However, despite lin-
uncertainty for the global
“modestly” in the Sep- investment was current- gering uncertainties like
economy,” the minutes
19 Feb 2020
Author: Sarah Ison • Section: Business News • Article type : News Item
Words: 513 • Item ID: 1236159212
read. “prepared to ease . . . if

“With the situation still needed to support sus-
evolving, members ob- tainable growth in the
served that it was too economy, full employ-
early to determine the ment and the achieve-
extent to which growth in ment of the inflation
China would be affected target over time”.
or the nature of the inter- The bushfire recovery
national spillovers.” is expected to add to
growth in the second half
But the bank remained of 2020.
optimistic in future hous- The central forecast for
ing market performance, growth remained
after reports of an unchanged since Novem-
“increase in sale of new ber, at 2.75 per cent over
homes and greenfield 2020 and around 3 per
land in recent months”. cent over 2021.
“A further reduction in Wages growth was
interest rates could also expected to be largely
encourage additional unchanged over the foll-
borrowing at a time when owing couple of years.
there was already a
strong upswing in the
housing market,” the
minutes said.
Some positive signs in
the global and Australian
economies drove the deci-
sion to keep interest rates
on hold earlier this
month, with the cash rate
rate unchanged at 0.75
per cent.
The unemployment
rate was expected to
remain in the 5 to 5.25 per
cent range for some time
before declining to
around 4.75 per cent in
2021, as GDP and employ-
ment growth picks up.
Capital Economics
senior economist Marcel
Thieliant said it would
not take much for the
RBA to cut rates further.
“If the unemployment
rate rises yet again over
the coming months as we
are anticipating, the
(RBA) will probably pull
the trigger,” he said.
“We stick to our fore-
cast that the (RBA) will
cut rates by 25 basis
points in April and July.”
NAB economist Kaixin
Owyong noted the board
had said it remained

19 February 2020

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19 Feb 2020

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INSTITUTIONS, REGULATORS BLASTED FOR DEPENDENCE ON CHINESE STUDENTS

Top universities face $1.2bn hit

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Markets, technology key

Coronavirus, jobless data key to rates cuts

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