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Coalition set to block budget taxes as parliament resumes

The Coalition announced it will oppose several tax increases within the budget including the 3.1 billion tax increase on alcopops, the $555 million luxury car tax and the removal of a 30-year excise exemption on condensurate, a crude extracted from the North-West gas shelf. The Opposition clarified that they were not blocking the budget outright, insisting new taxes are not the best way to fight inflation. Prime Minister Kevin Rudd said the actions were ‘irresponsible’ and risked puncturing a $22 billion hole in the budget surplus at a time of global economic uncertainty. The first week back in parliament after the winter recess saw several Soalition MP's ejected by the Speaker, including West Australian Liberal Barry Haase, who called Treasurer Wayne Swan a 'dud.'

• ABC News: Got says Opposition threatening surplus
• The Age: Opposition set to scupper luxury car tax
• ABC News: Opposition to block condensate tax measure
• The Canberra Times: Coalition poised to thwart revenue raises
• The Canberra Times: Opposition to blame for lack of reform

Australian car industry faces job losses

Pressure on the Federal Government to support the Australian car industry intensified this week as Ford declared it would require additional aid to remain competitive beyond 2010. The plea highlights the economic uncertainty facing the manufacturing sector as Ford, Kenworth and component supplier Unidrive announced significant anticipated jobs cuts, blaming a drop in market demand, high fuel prices and climbing interest rates. An Australian Bureau of Statics survey revealed that despite receiving $370 million of tax-payer funded grants, the three largest car manufacturers chalked up a $250 million loss last year. Finance minister Lindsay Tanner urged Australians not to panic as the cuts were ‘part and parcel’ of overall economic activity.

• The Australian: Unions seeking summit as the jobs keep vanishing
• The Australian: Government handouts driving carmakers
• Herald Sun: Finance Minister Lindsay Tanner’s ‘don’t panic’ plea on jobs
• Sydney Morning Herald: More job losses in car industry
• ABC News: Kenworth cuts Jobs
• The Age: Ford pressures Canberra for more assistance

Labor's education revolution gears up

The Rudd Labor Government this week announced a series of reforms aimed at implementing the 'education revolution' it promised while in Opposition. Labor plans to implement a 'report card' system for schools, with possible drastic action such as sackings or mergers possible for schools that fail to improve following funding increases. The move has attracted criticism from education unions and the Opposition who claim the ideas are rehashed from the Howard era. The Government also announced a $40 million literacy initaitve and introduced legislation to Parliament linking welfare payments to the recipients ability to ensure their child attends school. The Opposition labeled the latter a "media-driven stunt".

Fairfax staff walk out as editor fired amid job cuts

Workers at Fairfax Media such as The Age and The Sydney Morning Herald have walked off the job until Monday following the firing of 'Age' editor Andrew Jaspan the day after the company announced it's intention to lay-off 550 jobs. Angry staff criticised what they saw as a willingness to "sacrifice quality journalism for the sake of the bottom line,” following the arrival of new management last year. The announcement to slash 5 per cent of it's work force to save an estimated $50 million initially saw the company's share price increase by almost 5 per cent to $2.98 though it later stabilised.

Pokie operator to pay up

Australia's biggest ever class-action settlement was reached this week between pokie machine maker Aristocrat Leisure and about 4000 retail and institutional investors under a settlement approved by the Federal Court. The group representing the investors, Dorajay Pty Ltd will receive a $144 million payout to compensate for losses suffered when Aristocrat twice misstated it's earnings leading to an unattainable profit forecast. The company's share price then plunged from $5 to $1 though under the settlement shareholders will recover a record 80 cents for every dollar invested. Lawyers claim the decision could provide a useful precedent for other class actions.

• The Australian: Aristocrat Leisure punters win record payout
• Smart Company: Aristocrat pays $40 million to settle class action
• Sydney Morning Herald: Aristocrat pins recovery hopes on new games

Aussie banks lower fixed interest rates amid cautious optimism

The 'big four' Australian banks (National Australia Bank, Westpac, ANZ and the Commonwealth) all moved to lower their fixed interest rates this week by between .3 and .5 per cent. The decrease comes as petrol and oil prices come down from the highs reached in recent months and as the rates banks pay to fund their loans also ease. The Reserve Bank is widely tipped to lower interest rates by .25 per cent when the board meets on Tuesday. This week also saw the ANZ follow the NAB pledge to pass on a rate decrease to their home loan customers. ANZ has said it will pass on any increase while NAB has vowed only to pass on a .25 per cent cut.

• ABC News: Big four banks lower fixed rates
• The Age: ANZ latest to lower rate
• The Age: ANZ keeps promise to cut fixed loan rate

BCA calls for more compensation in emissions trading scheme

The Business Council of Australia released a report predicting dire consequences for industry if the proposed emissions trading scheme were to go ahead in its present form, without sufficient compensation for businesses. The emissions trading scheme is due to commence in 2010 and is the government’s main policy to address greenhouse emissions. The council model, which predicts a 22% fall in profits before tax for most businesses as result of the scheme, drew criticism from the head of the Australian Council of Trade Unions Sharan Burrow, who said the Business council is trying to evade its responsibility to be part of a climate change solution.

• Sydney Morning Herald: Plea for unity to cut emissions
• ABC News: Business Council evading responsibility on climate Change: ACTU
• The Climate Institute: Business Council risking ‘Carbon Protectionism’
• The Australian: BCA emission trading plea risky business: BP
• Business Council of Australia: Media release

Iemma forced to back down on NSW power privatisation scheme

New South Wales Labour Premier Morris Iemma was forced to withdraw his proposal to privatise the state’s electricity industry following heavy opposition from a combination of the Coalition, minor party MPs and renegades from the Labor party. Opposition leader Barry O’Farrell voted down the $10 billion sell-off saying there was too much ‘current uncertainty in the energy sector’ to justify the sale. The Premier announced he will now push to sell electrical retailers and developments while keeping power generators in public hands, with a crisis mini-budget to be held within 10 weeks to address a number of state government projects put at risk by the revenue shortfall.

• The Australian: NSW Government withdraws electricity sell-off legislation
• The Daily Telegraph: Premier Morris Iemma to call mini-Budget over collapsed power sale
• ABC News: Iemma to push through new power plan
• ABC News: Power play: Iemma’s move ‘smacks of desperation’