Today's News - Thursday 1 October 2020
Today's News - Thursday 1 October 2020
Our Backyard
Australia's fruit and vegetable farmers need an extra 26,000 workers to harvest their crops this summer, according to new research illustrating the impact of coronavirus border closures on farm labour.
The report, from consultancy firm Ernst & Young (EY), is the first to quantify the worker shortfall in the farm sector, which is typically reliant on overseas workers, since Australia closed its borders in March.
The report was based on an assumption that international borders would reopen in March next year, and noted that if that was not the case, the labour shortage would likely grow.
The Banking Code Compliance Committee (BCCC) was introduced to enforce the new banking industry code of conduct.
Bendigo and Adelaide Bank is the first "named and shamed" by the body, but will not face financial penalties.
In its annual report, the committee said the breaches occurred within Bendigo and Adelaide Bank's Great Southern Loans business from February 2015 to February 2019. They include failing to comply with consumer protections in the code, "such as debt collection practices and the treatment of customers experiencing financial difficulty".
The bank failed to discipline employees who issued incorrect collection notices, did not consider borrowers' financial circumstances and contacted customers repeatedly over outstanding debts, the BCCC said. The BCCC's audit found Bendigo Bank had systemically breached code provisions related to debt collection, financial difficulty, training and competency, privacy and confidentiality and complaints handling.
Bendigo Bank's share price was down 2 per cent to $6.07 at 1.30pm.
AMP staff are bracing for job losses across two divisions as the wealth giant pursues a cost-cutting exercise while it looks to sell off parts of the business in what has been a turbulent year for the company.
AMP confirmed there will be redundancies in its investment and banking divisions – AMP Capital and AMP Australia – to avoid duplicate roles across human resources and legal services. An AMP spokesman said it had made changes to "centralise some business services".
A network of 'big batteries' with a combined capacity far larger than the massive Tesla battery in South Australia would be built across Canberra, under a new plan from ACT Labor.
As part of the plan, parts of the battery network would be set aside for the sole purpose of trading energy on the national market, and making money to help pay for the batteries.
Labor has detailed the energy policy aimed at making Canberra a "globally recognised centre for renewable energy innovation and investment".
The $100 million investment would provide 250MW of storage capacity in five years' time.
Queensland holds nine out of the top 10 areas for mortgage deferrals with the major banks, with tourist areas hardest hit
Areas around Melbourne's suburban fringe also had high rates of mortgage arrears.
A UBS survey shows one-in-five people on deferrals intend to ask for an extension, and many of them lied on their loan applications.
https://www.abc.net.au/news/2020-09-30/mortgage-pausing-pain-in-queensland-holiday-spots/12717866
A peace deal has been proposed to end the Port Botany pay dispute after Scott Morrison lashed out at the union and accused it of preventing vital medical supplies getting to Australia.
Maritime Union Australia (MUA) announced it would agree to a 2.5 per cent pay rise for wharfies during a conciliation hearing with Patrick Terminals at the Fair Work Commission on Wednesday.
MUA secretary Paddy Crumlin said the proposal included the extension of existing workplace agreements for 12 months and a “reasonable” pay rise.
“This peace deal would result in the immediate end to all industrial action at Patrick container terminals now and for the duration of the agreement,” Mr Crumlin said.
After years of arguments, one of NSW's most controversial energy blueprints — Santos's $3.6 billion Narrabri coal seam gas project — has been approved by the states Independent Planning Commission (IPC).
The proposal for 850 coal seam gas wells in the Pilliga region in the state's north is expected to supply up to half of NSW's gas needs.
In its statement of reasons, the IPC said approval of the project would be phased, and that Santos would need to meet "strict conditions" before it reached to the construction and production phases.
There were concerns the project could lead to groundwater being contaminated.
There is no right to appeal the decision under NSW planning law.
The Reserve Bank of Australia has a set a date for the release of the new $100 bill, finalising its currency overhaul that has caused a design change for every note.
On October 29, the new note will be pumped into circulation, slowly replacing the 400 million $100 bills floating throughout the country’s payment system.
Iconic department store David Jones is pushing high-interest credit cards onto shoppers with the promise of on-the-spot discounts, a selling tactic condemned by the banking royal commission.
The store’s retail workers are selling David Jones American Express credit cards to customers at the point of sale, offering discounts of up to 20 per cent for approved applications.
The cards incur a higher-than-average interest rate of 20.74 per cent and carry fees ranging from $99 to $295.
Customer complaints about being unable to reach their internet or phone companies have increased by 1,500 per cent, a new report has found, with coronavirus shutdowns blamed.
More than 2,000 frustrated customers made an official complaint to the Telecommunications Industry Ombudsman (TIO) in the 2019-2020 financial year.
The deluge of complaints, which represent a 1,500 per cent increase from the previous financial year, was highlighted in a TIO report released today.
Betting company Lottoland says proposed changes to the Northern Territory's Racing and Betting Act will destroy its business model in the Territory, and is taking the Government and Minister for Racing to court to try and block the changes.
In an Originating Motion filed in the Supreme Court, Lottoland said the Government had sought to change Section 92 of the act, which relates to licensing conditions. Lottoland holds its Australian licence in the Northern Territory.
In court, Lottoland's lawyer, Sebastian Hartford Davis, said changes to licensing conditions would "destroy" the company's business model in the NT.
"These changes to the conditions to licences as set out in the act, though applied to all bookmakers in the NT, would only negatively affect Lottoland," Mr Davis said.
The NT Government declined to provide the ABC with details of the planned changes to the Racing and Betting Act.
Many Aussies will be missing out on an hour of sleep this weekend when the clocks jump forward to mark the start of daylight saving time.
At 2am on Sunday, October 4 clocks will move forward an hour to 3am for people in NSW, the ACT, South Australia, Tasmania and Victoria.
A further 6000 vehicles have been added to the number of cars that needed to be recalled due to Takata airbags, as Toyota adds two more Corolla models to the list.
The affected Toyota Corolla models are ZZE122 and ZZE123 with model years between 2003-2005, and have now been added to the compulsory recall.
The addition comes after two passengers suffered burns and cuts from flying metal shrapnel from a misdeployed airbag after the 2004 Corolla they were travelling in rear-ended another car in Sydney a month ago.
Thousands of Mercedes-Benz owners are being urged to take their vehicle in for repair after the luxury car company found a defect in one of their models.
The affected model is the Mercedes-Benz X Class from years 2018 and 2019.
According to Product Safety Australia, there are 6116 vehicles impacted by a leakage from the hydraulic line connecting on the steering gear.
The leakage “may result in the gradual loss of steering hydraulic fluid”, Australia’s consumer safety group said.
Flight Centre will shut a further 90 stores across Australia as the ongoing closure of state and national borders keep holidaymakers grounded and the travel group in hibernation.
The ASX-listed travel agent's announcement on Wednesday comes after it already closed about 280 of its 700 local Flight Centre branded stores since the start of the year due to COVID-19.
The amount of children's content on commercial free-to-air television will shrink from next year under new rules to be introduced by the federal government that retain overall local content quotas but give networks more flexibility over the shows they commission.
Streaming companies such as Netflix, Amazon Prime, YouTube and Stan will also be asked to tell the government how much they spend on Australian content but will not be required to air a certain amount of local programs or films.
Both reforms are likely to frustrate the Australian production industry, which supports the current guidelines requiring commercial networks to produce children's TV and has been calling for local content quotas for the US streaming giants.
Former NSW Labor MP Eddie Obeid and three of his five sons have been ordered to pay more than $5 million in legal costs after bringing a failed lawsuit against the Independent Commission Against Corruption.
In a decision on Tuesday, NSW Supreme Court Justice David Hammerschlag ordered Obeid senior and his sons Moses, Paul and Eddie junior to pay $5,071,475 to cover the legal bills of ICAC, former commissioner David Ipp, QC, former counsel assisting the commission, Sydney barrister Geoffrey Watson, SC, and two ICAC officers.
Amid job cuts around the country, Dan Murphy’s and BWS are looking for thousands of casual workers leading up to the busy summer season, with more than 1600 new job openings available now.
Poodle-mix crossbreeds known as "oodles" are quickly becoming one of the most sought-after dogs in Australia.
Increased demand for "designer dogs" during the coronavirus pandemic has seen puppy prices soar, with some breeders asking as much as $15,000 for a groodle or a cavoodle, which are poodles bred with golden retrievers and cavalier king charles spaniels, respectively.
Bunnings chief operating officer Deb Poole announced on 2GB, revealing the sausage sizzle will be back at Bunnings stores in the ACT this weekend and NSW next weekend.
World News
Kuwait's 91-year-old emir Sheikh Sabah al-Ahmad al-Sabah has died.
Sheikh Sabah ruled the country since 2006 and steered its foreign policy for more than 50 years.
State television announced his death on Tuesday morning (local time) after it interrupted regular programming to cut to Koranic verses, a move which often signifies the death of a senior member of the Gulf Arab state's ruling family.
First it was Google, then Microsoft, now Apple is having trouble with its online services.
The impact is less widespread than last week’s Google outage or Tuesday’s Microsoft outage as Apple’s online services aren’t widely used by businesses, but the outage looks to be impacting on customer’s iCloud storage, email and backup services, the App Store, as well as its entertainment services such as Apple Music, Books and TV+.
Uber’s efforts to build a self-driving car have cost the company nearly $US2.5 billion ($A3.5 billion) and it’s still nowhere close to putting a driverless car on the road, according to a new report.
Despite the team first beginning its research in 2015, Uber’s self-driving car “doesn’t drive well” and “struggles with simple routines and simple manoeuvres,” a manager in the unit told CEO Dara Khosrowshahi, the report said.
Paramedics in England's remote Lake District region have been testing a jet suit that gets them to people in danger or distress in a fraction of the time it would take to travel by car or on foot. The technology reduces response times in rough terrain and could save lives.
The suit has a record top speed of 51kph and a maximum altitude of 3,658m.
A paramedic said it was "astounding" how quickly it could get emergency service workers to injured people.
https://www.abc.net.au/news/2020-09-30/english-paramedics-trial-jet-suit-in-lake-district/12718122
Poverty in the East Asia and Pacific region is expected to rise for the first time in 20 years due to the triple shock of the COVID-19 pandemic, the economic impact of lockdown and the global recession triggered by the health crisis.
The dire prediction, released by the World Bank on Tuesday, means that as many as 33 million people in East Asia who would have otherwise escaped poverty before the pandemic will remain poor, and another five million will be pushed back below a poverty line of just $US5.50 ($7.70) a day.
The forecast, nine months after the pandemic first hit, reveal that the region is predicted to see only 0.9 per cent growth in 2020 - the lowest since 1967.
US Presidential debate between Trump and Biden can be seen at CNN’s YouTube channel: https://www.youtube.com/watch?v=yHFI8TsSKXY
Covid-19
British Prime Minister Boris Johnson has been forced to apologise and correct himself after he gave out incorrect information on social distancing as the UK recorded its highest daily number of COVID-19 cases since the pandemic began.
Boris Johnson has apologised after he "misspoke" when asked to clarify new restrictions in north-east England. Different households in the region are banned from meeting indoors, but Mr Johnson told them the opposite.
Property News
Victorian commercial movement:
LEASING:
- Ringwood - Investors are turning to defensive, safe haven property to insulate themselves from COVID-19, seeking assets with income certainty both now, and beyond, the pandemic. The off-market, off-the-plan sale of a strata titled VicRoads customer service centre to a China-based investor for $9.3 million. The under-construction centre at 93A Heatherdale Road has a 12-year lease at rent of $469,580 per annum and sold on a sharp 5 per cent yield.
· Fitzroy - Two creative web development businesses, It’s All Fluff and Love & Money, are taking over a shop at 188-196 Gertrude Street that was formerly tenanted by Contemporary Art Spaces. The web firms signed a four-year term at a starting rent of $132,500 net, paying a market leading $617 per sq m for the 215 sq m space.
· South Yarra - Damstra Technology has leased a 450 sq m office in The Como Centre, on level 3 at 299 Chapel Street, from Newmark Capital, paying $632 per sq m under a five-year lease. The open-plan office space features an extensive private balcony along Toorak Road.
· North Melbourne - Ericsson Australia is taking over an office warehouse that was formerly leased to CSE Crosscom. Ericsson will pay $150,000 a year on a three-year lease for a unit at 59-63 Mark Street.
· Toorak - Chef Denis Hagger will open a new dine-in and takeaway French-style rotisserie after leasing space in Toorak Village on a three-year term for $45,000 a year. Mr Hagger’s other ventures include 25 Toorak Road and Maison Maldon Gourmet Retreat. The 60 sq m ground-floor shop with a commercial kitchen is at 472 Toorak Road.
· Coburg North - Metal manufacturers AWM Electrical will move into 152b Gaffney Street on a five-year lease at 57,500 a year.
· Carlton - A Pakistani restaurant based in Fawkner is expanding to a second location, leasing 48 sq m at 142 Rathdowne Street. A six-year lease at $500 per sq m for landlord Patelas Operations.
· Laverton North - Heavy commercial vehicle hire firm TR Group has leased a 7.5 hectare warehouse and hardstand facility that was previously occupied by Prixcar, paying $950,000 a year under a 10-year lease at 89-95 Boundary Road. The lease is for the 4000 sq m combined office and warehouse.
· Bayswater - Crux Biolabs will lease a 430 sq m laboratory in the Mountain Highway Business Park at 885 Mountain Highway. Crux signed a five-year lease with landlord Integrated Logistics Partners valued at $170 per sq m.
Sydney commercial movement:
LEASING:
- The Rocks - ACCIONA has leased 1,553 sq m of office space via a sublease from Rozetta, at 55 Harrington Street, paying $750 per sq m net in rent for a three year lease. This office requirement comes after ACCIONA’s acquisition of the Lendlease Engineering business.
- Auburn - Brand Venture Pty Ltd has leased am 8086 sq m industrial property at 46-48 Princes Road from a private landlord. The rent is $65 per sq m net on a lease of five and a half years.
- Macquarie Park - Biotech specialist Aegros has leased 4,439 sq m on a six year lease and medical equipment group Saluda leased 2,592 sq m on a seven-year lease, at Australian Unity’s 5 Eden Park Drive. The rent is $380 per sq m on the office and $295 pr sq m on the production space. The two groups were attracted to site due its existing infrastructure, which suited the tenants’ manufacturing, research and development requirements.
- Eastern Creek - Designer Transport has sub leased a 3,508 sq m warehouse at Unit 6, 2 Southridge Street from a unnamed landlord on an 18 month lease. The annual gross rental is $560,000 for the warehouse with 3,916 sq m of gross floor area.
- Arndell Park - GB Auto Group Pty Ltd has leased a 967 sq m site including a 140 sq m office and 827.5 sq m warehouse at 10 McCormack Street from a private landlord. The lease term is five years plus a five year option at a rent of $120.26 per sq m.
- Alexandria - Bolo Baking Ink Pty Ltd has leased 165 sq m at 10/112 McEvoy Street from Lyari Holdings Pty Ltd. The lease term is four years on a rent of $545.45 sq m gross.
- Silverwater - Woolpack Australia has inked a new lease for a larger 665 sq m warehouse and office site at 40 Egerton Street from Clubmore Pty Ltd No. 1 Trust. The lease term is three years plus a two year option at a rent of $160 per sq m. Yennora - Friending Pty Ltd has inked a new lease for a larger 582 sq m site at 4/200 Fairfield Road from EBA Group Pty Ltd. The lease term is three years plus a two year option at a rent of $60,000 per annum net.
Market News
Australian shares are expected to open slightly higher, as Wall Street rebounded on hopes of the United States passing another trillion-dollar stimulus package.
ASX futures were up 0.2 per cent by 6:40am AEST.
The Australian dollar had risen (+0.5pc) to 71.64 US cents.
Amid a volatile overnight session, the Dow Jones index managed to jump 329 points (+1.2pc), to close at 27,782.
The broader S&P 500 gained (+0.8pc) to 3,363, while the tech-heavy Nasdaq went up (+0.7pc) to 11,167 points.
European markets closed lower, with moderate losses for Britain's FTSE and Germany's DAX shedding 0.5 per cent each.
Spot gold fell (-0.7pc) to $US1,884.93 an ounce.
Brent crude oil slipped (-0.2pc) to $US40.95 a barrel.
Michael Tran
Director Relationships