Today's Business Headlines

States line up against Gillard

One of only two remaining Labor state treasurers has accused the federal Labor government of bleeding already strained state budgets to guarantee its own surplus. The Fin

Labor takes axe to green bureaucrats to bolster surplus

The Department of Climate Change will scrap up to 300 jobs — one-third of its workforce — as the Gillard government clamps down on spending in its effort to return the budget to surplus. The Aus

Gas project workers in limbo

A major contractor on Chevron's $43 billion gas project fears its foreign workers risk being placed in mandatory immigration detention, potentially halting its operations at a cost of $1 million a day, a federal court hearing in Perth was told yesterday. The Fin

WA looks at $90m lifeline for Indian power group

Two major West Australian government utilities have been asked to contribute to a $90 million lifeline for embattled Indian power group Lanco Infratech, which controls half the state's coal supplies, in a throwback to the WA-Inc era of the 1980s. The Fin

Bank 'ignores' rate cut signals

The Reserve Bank has been accused of putting the national economy at risk after deciding to keep official interest rates on hold. The West

 

THE WEST AUSTRALIAN:

Page 1: West Australians are drinking at higher rates that the national average across all measures, with one in eight adults binge-drinking once a week, according to figures.

Page 6: The Reserve Bank has been accused of putting the national economy at risk after deciding to keep official interest rates on hold.

Page 10: All first-year students at Edith Cowan University had to do a compulsory English language test this year as part of a national push to make sure graduates have the high-level reading, speaking and writing skills employers demand.

Page 11: Transporting massive equipment around WA has become a logistic and bureaucratic nightmare.

Page 13: The Commonwealth and the states could intervene in a Federal Court battle over whether crews working on a pipeline for the $43 billion Gorgon gas project are in breach of Australian visa laws.

Page 14: The WA Water Corporation is by far the most lucrative cash cow among Australia's water utilities and is also the second most efficient.

Plans to lure Americans to Australia to plug labour shortages have been welcomed by Pilbara businesses, which face a shortfall of 34,000 workers as the resources boom heats up.

Page 17: Sales of electronic shark shields have gone through the roof after four fatal shark attacks in seven months in the state's south west.

Page 30: The decision to close one of Perth's major waste processing plants because of ongoing odour problems means 15 per cent of Perth's rubbish will now be dumped in landfill, the WA Local Government Association says.

Business liftout:

Page 1: Aquila Resources has tied its future more closely than ever to the fate of its $6 billion WA iron ore project after agreeing to sell its only money-making operation, Queensland's Isaac Plains coal mine, to Sumitomo Corp for $430 million.

The market was awash with speculation yesterday that iron ore billionaire Clive Palmer was spearheading an $11 million capital raising to make him the biggest investor in embattled Central Petroleum.

Woodside Petroleum chief executive Peter Coleman has confirmed widespread market speculation that he would adopt a more conventional organisational structure for the oil and gas giant by yesterday appointing senior executive Vince Santostefano to the newly created role of chief operations officer.

Page 3: The chequered environmental history of Norton Gold Fields' Chinese suitor is unlikely to scupper Foreign Investment Review Board approval for a $230 million bid, says the WA gold miner's boss.

Page 5: OneSteel believes the decision to re-brand itself as Arrium Ltd will lure new investors to its register, as the company's biggest shareholder declared its support for the change.

Page 20: WA-based property developer Cedar Woods was last night finalising its first equity raising in more than five years to provide funding for its $1.5 billion flagship Williams Landing master-planned community in Victoria.

Perth needs more high density housing, employment and amenities to cater for population growth but lenders and community attitudes are inhibiting some projects.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: One of only two remaining Labor state treasurers has accused the federal Labor government of bleeding already strained state budgets to guarantee its own surplus.

The aggressive discounting war between supermarket giants Coles and Woolworths is forcing the traditional corner store out of business, Metcash chief Andrew Reitzer has warned.

Page 3: An independent audit of the Australia Network tender process has catalogued a damning lack of proper process and perceptions of a conflict of interest, while highlighting deep divisions at the top levels of the Gillard government.

Page 4: Optus has warned that cost blowouts on the $36 billion national broadband network could damage the economy and squeeze consumers.

Billions of dollars in investment in oil and gas development will be at risk if Labor proceeds with plans to cut exploration and depreciation tax breaks in the May budget, the resources industry says.

Page 5: Economists have called for a long-term reform plan to make labour laws more flexible and reduce handouts to failing industries, after the central bank linked interest rate cuts to further productivity growth.

Page 8: The federal opposition has upped the ante on the government to quickly fix botched changes to executive pay reforms, claiming it would facilitate and easy and speedy fix.

Page 10: Business leaders have taken aim at the federal government's failure to streamline bureaucratic red tape, saying growth and productivity have been stymied by increasing regulatory burdens on the private sector.

Page 12: A major contractor on Chevron's $43 billion gas project fears its foreign workers risk being placed in mandatory immigration detention, potentially halting its operations at a cost of $1 million a day, a federal court hearing in Perth was told yesterday.

Two major West Australian government utilities have been asked to contribute to a $90 million lifeline for embattled Indian power group Lanco Infratech, which controls half the state's coal supplies, in a throwback to the WA-Inc era of the 1980s.

Page 15: QR National could help end the long-running industrial dispute between the BHP Billiton Mitsubishi Alliance and its unionised workforce, industrial relations lawyers say.

Transfield Services has cut forecast profits from its Easternwell oil and gas acquisition for a second time this year, blaming bad weather for preventing access to well sites as it also slashed 2012 group earnings guidance by nearly a quarter.

One of the biggest beneficiaries of the federal government's carbon tax has criticised the scheme for failing to move with international market developments.

Page 16: Rio Tinto iron ore chief executive Sam Walsh has indicated a project to expand the group's annual Pilbara production to 353 million tonnes will be taken to the miner's board for consideration in May or June.

Andrew Forrest is dipping into his personal fortune to help Poseidon Nickel bring the historic Mount Windarra nickel mine in Western Australia back into production.

China's Zijin Mining is expected to use Norton Gold Fields as a platform to expand its international business if it proceeds with a $230 million takeover of the Brisbane-based gold miner.

Aquila Resources has put pressure on the West Australian government to move ahead with the Anketell Point port development, after the company secured crucial investment funds for the West Pilbara iron ore project.

Page 19: Nexus Energy's surprise appointment of high-profile Woodside Petroleum executive Lucio Della Martina as its new chief has met a new mixed response, with some questioning whether he can add short-term value.

Page 21: Perth has proved to be a fertile source of ideas for the chief of the ASX on his first visit to the city at the heart of Australia's resources wealth.

 

THE AUSTRALIAN:

Page 1: The Department of Climate Change will scrap up to 300 jobs — one-third of its workforce — as the Gillard government clamps down on spending in its effort to return the budget to surplus.

Stephen Conroy’s decision to ignore warnings from his own department and take control of the $223 million Australia Network tender created a potential conflict of interest, according to a damning report from the Auditor General that exposes a series of bungles and rivalries inside the Gillard cabinet.

Page 2: The Reserve Bank has admitted its economic forecasts issued two months ago were too optimistic, and flagged it would cut interest rates next month provided inflation stays under control.

The head of Australia’s fourth-largest health fund has backed a call by Medibank Private for the health minister to remove herself from the process of approving annual premium rises.

Page 4: The Auditor-general has lashed cabinet over its handling of the Australia Network contract, saying ‘‘the manner and circumstances in which this high-profile tender process was conducted brought into question the government’s ability to deliver such a sensitive process fairly and effectively’’.

Page 5: Australia's resources and construction companies are pushing to extend the definition of ordinary hours beyond the eight-hour working day, a change they say is crucial to remove restrictions on remote projects that use fly-in, fly-out labour.

Page 6: Wayne Swan is preparing for a showdown with the conservative states today by reminding them that Canberra still holds the purse strings.

Households face higher water bills to fund massive capital investments, including desalination and water recycling projects, the National Water Commission has found.

Resource projects worth billions of dollars are at risk from a change in tax law in next month’s federal budget, according to a grim industry warning to the Gillard government this week.

Page 9: Labor elder Bob Hawke yesterday issued a stark warning to people in the party to cease attempting to traduce the reputation of mining magnate Andrew Forrest.

Trade Minister Craig Emerson has flagged a big change in Australia’s policy on free trade agreements in an attempt to bring eight years of negotiations on a deal with China to a conclusion.

Business: Grocery wholesaler Metcash plans to sack 478 staff and close 15 of its Campbells division’s Cash & Carry outlets as consumers increasingly bypass the corner shops that the business supplies in favour of the price advantage of supermarkets and the convenience of petrol stations.

The Reserve Bank has flagged it could deliver an interest rate cut before next month’s federal budget, as the Australian economy undergoes considerable ‘‘structural change’’ and Europe remains a major world risk.

Virgin Australia will set up its frequent-flyer program as a separate business unit as it ramps up the scheme’s expansion and moves to better capitalise on lucrative partnerships.

Steelmaker and miner Onesteel has revealed plans to change its name to Arrium, losing any reference in its moniker to the struggling steel business that is still its biggest contributor of turnover and asset value.

Aquila Resources is in the box seat to develop a multi-user port at Anketell Point in the Pilbara after firming up crucial funding with the $430 million sale of a key coal asset

Poseidon Nickel has strengthened its project funding pool with the support of Andrew Forrest and is on track to develop the first new nickel sulfide mine in Australia in 10 years.

The Australian stock exchange has again crossed swords with the corporate watchdog on the contentious issue of regulating the so-called ‘‘dark’’ equities market.

Long-serving head of Woodside Petroleum’s flagship Pluto gas project, Lucio Della Martina, will become chief executive of junior oil company Nexus Energy, replacing ousted boss Richard Cottee.

 

THE SYDNEY MORNING HERALD:

Page 1: The Craig Thomson saga bedevilling the Gillard government will drag on for months more after Fair Work Australia concluded its report into alleged misconduct at the helm of the Health Services Union and referred the matter to the federal Director of Public Prosecutions for possible criminal charges.

Page 2: A report into the federal government's handling of the $223 million Australia Network contract has questioned its ability to handle sensitive processes "fairly and effectively", and further exposed the tensions between Julia Gillard and Kevin Rudd.

Page 3: Doctors fear a pharmacy chain's move to impose generic branded drugs means elderly patients will be confused by unfamiliar packaging and risk mixing their medicines.

World: South-East Asian nations are divided on how they should deal with China over the Spratly Islands amid heightened tensions over competing claims for the resource-rich area in the South China Sea, a potential flashpoint for the region.

Business: Metcash is to gut its convenience store wholesaler Campbells Cash and Carry and slash head-office jobs, costing at least 478 workers their positions, as the supermarket supply group scrambles to cope with the retail downturn.

Sport: NSW coach Ricky Stuart has publicly challenged the top Blues eligible props in the NRL to force him not to pick Paul Gallen in the front row for State of Origin I.

THE DAILY TELEGRAPH:

Page 1: Premier Barry O'Farrell's top adviser Peter Grimshaw has quit over The Star casino affair.

Page 2: Prosecutors will consider a raft of potential criminal charges against embattled Labor MP Craig Thomson after receiving the results of an investigation into the alleged misuse of a union credit card.

Page 3: A $3 billion budget shortfall in this year's carbon tax compensation bill has angered senior ministers who are being forced to make savings in the May budget to help pay for it.

Business: One of the nation's largest defence contractors will establish its new Australian headquarters in western Sydney - keeping 500 jobs in Sydney.

Sport: Western Sydney will have a team in the A-league next season.

THE AGE:

Page 1: Dozens of officials and consultants who work for Victoria's building industry watchdog are accused of taking kickbacks.

Melbourne trial to prevent unborn babies from developing cerebral palsy.

A new code of conduct will banish union logos, mottos and insignia from building sites.

Page 2: Draftsman who forged planning permits still registered with building commission.

Page 3: Poker machine venues trying to circumvent looming ban on ATMs.

Art dealer Robert Gould to sue his former lover and Sotheby's Australia chairman Geoffrey Smith over $7 million of assets.

World: South-East Asian nations split over how they should deal with China as tensions grow over resources in the South China Sea.

Business: Metcash to gut its convenience store wholesaler Campbells Cash and Carry and slash head office jobs, shedding at least 480 staff.

Sport: Aaron Davey at the centre of a storm at AFL club Melbourne and continues to deny he leaked a false story about coach Mark Neeld treating indigenous players differently.

 

THE HERALD SUN:

Page 1: Aaron Davey denies he's the player who leaked a false story about Melbourne new coach Mark Neeld treating indigenous players differently.

Page 2: Dannii Minogue splits from male model partner Kris Smith. Labor MP Craig Thomson faces potential criminal charges into alleged misuse of a union credit card.

Page 3: Bart Kennedy proposes to his girlfriend on a big banner then hires a plane to fly above it before popping the question. She said yes. Park ranger strike means Easter campers will have to deal with filthy toilets and rubbish at camp sites.

World: A gunman has killed seven people when he opened fire at a Christian university in California.

Business: Corner stores withering in the face of supermarket wars, says Metcash boss.

Sport: AFL race chief keeps his job despite getting it wrong about Demons coach Mark Neeld.

THE CANBERRA TIMES:

Page 1: The company whose Canberra chemical plant was destroyed in a toxic fire last year wants to open a new facility elsewhere in the city.

The ACT Auditor-General says it could take 26 years for the government to achieve its goal of reducing the number of poker machines in the territory by about 1000.

Page 2: A new website that lets students compare universities shows the Australian National University has better retention rates, but the University of Canberra has better graduate employment outcomes.

Page 3: Government-owned utilities corporation Actew has asked the pricing regulator to be allowed to change water prices annually during times of drought.

World: Seven people were killed and another three injured by a gunman who went on a shooting rampage at a private California religious college.

Sport: Injured Canberra Raiders prop Brett White is keeping a positive attitude, saying his pre-season for the 2013 campaign began on Tuesday.