Today's Business Headlines

'High-cost, low-productivity nation'

Australia is losing the battle to be internationally competitive and has become a high-cost, low-productivity country complacent about what it needed to secure its prosperity, business leaders have warned. The Fin

WA office costs blowout

The West Australian government will spend an extra $35 million fitting out new city offices, undermining claims it is saving money by shifting some agencies to cheaper suburban locales. The Fin

Base set to lock in Kwale buyers

Base Resources managing director Tim Carstens says the company is closing in on the final offtake agreements needed to secure funding of the Kwale mineral sands development in Kenya. The Aus

Ironbark takes a leaf out of Glencore's book

Global trader Glencore, fresh from its offer for mining house Xstrata, is set to back Ironbark Zinc’s bid for a new acquisition to kick-start an aggressive growth plan for the junior. The Aus

Contractors at risk in NBN: union

The communications union has warned that the contracts used in WA for the National Broadband Network are set to become a new industrial relations flashpoint. The West

THE WEST AUSTRALIAN:

Page 1: The City of Fremantle would become the first Australian council to outlaw single-use plastic shopping bags under plans to turn a long-standing policy into law.

Page 3: All four big banks have now raised home loan interest rates independently of the Reserve Bank, setting them on a collision course with the federal government, which is urging borrowers to seek better deals from smaller lenders.

Page 6: Julia Gillard's office began her victory speech for when she became prime minister two weeks before Kevin Rudd was ousted.

Page 9: An environmental review of a proposed inland marina at Point Peron has found the project would not damage nationally significant ancient life forms in nearby Lake Richmond.

Page 18: The decades-long fight to protect Fremantle's low-rise character has entered a new phase with battle-lines drawn over plans to increase height limits across a dozen east end city sites.

Business: A top ANZ executive has warned of more jobs pain across the entire banking sector, with a slowdown likely to last years.

Qantas staff fear that job cuts will be announced on Thursday when the airline releases its half year profit and updates investors on a strategic review of its loss-making premium international operations.

JB Hi-Fi restored some investor confidence yesterday, pipping the first-half earnings guidance it gave the market just before Christmas in a shock downgrade that sent its shares tumbling.

The communications union has warned that the contracts used in WA for the National Broadband Network are set to become a new industrial relations flashpoint.

A Leighton Holdings unit based in Asia is embroiled in allegations of corrupt conduct on at least two fronts, with the construction group revealing the Australian Federal Police had launched a formal investigation into possible bribes in Iraq.

It took three years and about $5 billion in capital cost blowouts to sent the Oakajee port and rail development off the rails but Murchison Metals shareholders needed just 18 minutes yesterday to wash their hands of the troubled project.

Minemakers says the sale of a half-stake in its Northern Territory rock phosphate project could help bankroll the $200 million Namibian project at the heart of a $24 million bid it launched yesterday for joint venture partner UCL Resources.

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: Australia is losing the battle to be internationally competitive and has become a high-cost, low-productivity country complacent about what it needed to secure its prosperity, business leaders have warned.

National Australia Bank chief executive Cameron Clyne was pressured by some of the biggest shareholders to increase interest rates by more than major competitors, before it raised home and business lending rates.

Page 3: ANZ Banking Group has confirmed it will cut 1000 Australian jobs by the end of September in a bid to offset weakening revenue because of soft demand for loans and continuing global economic uncertainty.

Prime Minister Julia Gillard has brushed off the findings of Treasury modelling on the aluminium industry under a carbon price, saying the government would ensure it had a future.

Page 4: Tax law changes to help struggling businesses will allow companies to cash in on the profits made in past years and ensure any losses retain their value.

The government's chief climate change adviser defended imposing a $23 carbon price on July 1 when the market price in other countries had fallen to as low as $5.50.

Page 5: Prime Minister Julia Gillard sought last night to counter claims that her office prepared a speech for her rise to the leadership two weeks before she replaced Kevin Rudd, a development which could inflame those unhappy with her performance.

Page 6: A long-awaited recovery in the struggling housing market could be delayed by the large banks' decisions to increase mortgage rates.

Page 7: Trade unions are pushing the federal government to make job protection a top priority in the budget in May and consider pushing back the planned surplus, a key political and economic objective of the government.

Page 9: The West Australian government will spend an extra $35 million fitting out new city offices, undermining claims it is saving money by shifting some agencies to cheaper suburban locales.

West Australian Nationals leader Brendon Grylls says his party will contest all regional seats at the 2013 election, potentially threatening some of his Liberal Party Coalition partners.

Page 17: Federal Workplace Relations Minister Bill Shorten has lifted the lid on Qantas Airways' planned cutbacks on its maintenance operations as the company looks to further trim capacity from its international network.

THE AUSTRALIAN:

Page 1: GM Holden has agreed to an extraordinary wage deal that will lift the income of 4000 employees by up to 22 per cent by 2014, despite the carmaker seeking a taxpayer-funded assistance package from the Gillard government.

Tony Abbott has again overtaken Julia Gillard as preferred prime minister as the Coalition continues to dominate a federal Labor Party distracted by leadership divisions.

Julia Gillard has been forced into damage control over claims her office prepared her speech accepting the prime ministership a fortnight before she ousted Kevin Rudd from the position.

ANZ Bank’s plans to slash 1000 jobs in the biggest bloodletting by the retail banking sector since the global financial crisis have been made more urgent by its inability to pass on rising costs in the face of government pressure over interest rates.

Page 2: Four per cent of roof-top solar panel installations have been found to be unsafe in inspections conducted by the official regulator, and 20 per cent are substandard.

Page 3: The nation’s biggest construction company, Leighton Holdings, is embroiled in a fresh scandal as the Australian Federal Police investigates allegations one of its offshore subsidiaries made improper payments in connection with an oil export contract in Iraq.

Telstra has unveiled pricing details of its AFL live-streaming service in a move to mitigate the threat posed by a landmark court decision that allows its rivals to stream pre-recorded broadcast content.

Page 4: Trade unions have cranked up the pressure on Julia Gillard to spend public money protecting jobs, demanding measures to help manufacturers withstand pressure from the high value of the dollar.

Retailers have demanded cuts to employee entitlements to compensate for rising labour costs resulting from Labor’s award overhaul, as the retail slump claims Sleep City as its latest victim.

Homebuyers are returning to the market, as lower interest rates and changes to state government subsidies prompt a surge in home loan approvals.

Qantas has rejected as ‘‘totally incorrect’’ suggestions it will use its half-yearly results on Thursday to announce it is sending Australian jobs offshore, but it is expected to unveil a review of its local maintenance operations.

Business: The David Jones board has backed chief executive Paul Zahra after announcing the resignation of finance director Stephen Goddard just a week before the company is due to report sales for its second quarter.

Top officials at the competition watchdog, including chairman Rod Sims, will share their disclosures of pecuniary interest in a significant upgrade of scrutiny surrounding potential conflicts on interest.

Leighton Holdings has declared it is “back on track” after delivering a first-half profit jump and dividend to shareholders despite questions over its Middle East project and operating cashflow.

Bendigo and Adelaide Bank managing director Mike Hirst has warned that banks would be forced to ration lending if they did not raise their mortgage rates.

Murchison Metals has cleared the final hurdle in the $325 million sale of its stake in the troubled Oakajee port and rail project, and its iron ore mine, to Japan’s Mitsubishi.

Base Resources managing director Tim Carstens says the company is closing in on the final offtake agreements needed to secure funding of the Kwale mineral sands development in Kenya.

Global trader Glencore, fresh from its offer for mining house Xstrata, is set to back Ironbark Zinc’s bid for a new acquisition to kick-start an aggressive growth plan for the junior.

Optus chief Paul O’Sullivan believes the push by Vodafone to win back customers by aggressively slashing costs could slow the growth potential of the Australian mobile market.

Home electronics retailer JB HiFi has reported a 9.4 per cent fall in earnings for the first half of the financial year in what chief executive Terry Smart called the most challenging period for retailers in many years.

THE SYDNEY MORNING HERALD:

Page 1: The NSW economy is set to be hit as the finance sector sheds jobs, Treasurer Mike Baird has warned. The cost of catching a ferry could rise when a review is handed down this year.

Page 2: Commuters enjoy quiet carriages on a Sydney train.

Page 3: Environmental groups say about 320,000 tonnes of bottles, cans and other containers appear to have gone missing from the national recycling inventory.

World: Rioters set the Greek capital Athens ablaze after MPs pass an austerity and debt relief bill.

Business: A Leighton Holdings unit based in Asia is being hit by allegations of corrupt conduct on at least two fronts, with the federal police launching a formal investigation into possible bribes in Iraq.

Sport: NRL player Kade Snowden talks about why he left cronulla to return to the Knights.

THE DAILY TELEGRAPH:

Page 1: The woman who claims to be the illegitimate daughter of Gina Rinehart's father Lang Hancock tells of her love of her nieces and nephew.

Page 2: The National Australia Bank and the Commonwealth Bank have lifted mortgage rates.

Page 3: The NSW government is set to revive laws that would allow bikie gang members to be locked up simply for associating with each other.

World: Rioters set the Greek capital Athens alight after MPs pass an austerity and debt relief bill.

Business: The Greek government has won parliamentary approval for austerity measures needed to secure an international bailout.

Sport: A consortium headed by billionaire West Australian businessman Tony Sage has held talks with Ricky Stuart in an effort to bring the Blues coach to Perth.

THE AGE

Page 1: More companies, including Qantas, poised to join in the big job cuts. Angry home owners leaving their banks at unprecedented levels.

Large companies discover bribery within their ranks of executives in Africa and Asia.
Page 3: Prime Minister Julia Gillard faces new questions over timing of Rudd coup. Adele sweeps the Grammys with six awards. Magda Szubanski comes out in favour of gay marriage. Lovelorn get private dicks to do background checks on potential partners.

Business: Leighton caught up in allegations of corrupt conduct including possible bribes in Iraq.

World: Al-Qaeda gets behind anti-government protesters in Syria.

Sport: St Kilda players may get enforced breaks during the season as new coach looks to manage his playing list.

THE HERALD SUN:

Page 1: Victoria's job crisis worsens with 600 set to go from ANZ HQ in Docklands. Whitney Houston's last hours.

Page 2: Home loan customers hurt as NAB and Commonwealth Bank match other banks' interest rate rises.

Page 3: Chopper Read banned from firing the starter's gun at his son's Little Aths meetings. Magda Szubanski backs gay marriage.

World: Buildings set alight as protesters rampage on streets of Athens over austerity measures.

Business: ANZ warns of flat profit for years ahead as it moves to sack 1000 staff.

Sport: Geelong forward Nathan Vardy said his hip surgeon thought he might never play again.

THE CANBERRA TIMES:

Page 1: ANZ axes 1000 more jobs, big banks defend new rates hike.

Page 2: Liberal pledge on boats slammed by Customs.

Page 3: Military judge joins magistrates court.

World: Former PNG prime minister Sir Michael Somare vows to continue legal fight.

Business: AFP to probe Leighton payments.

Sport: Forrest hanging out for Windies tour.