Read the full article here.
Tuesday, 30 April 2019
"Liar liar, political pants engulfed by inferno" - Mungo MacCallum
Echo NetDaily, 23 April 2019:
A short week of
campaigning and an even shorter one to come – which is perhaps why the
temperature has ramped up to almost febrile levels.
There was a heap of
colour and movement, lots of smoke and mirrors. But whether it actually
achieved anything substantial is at best dubious.
There were the usual
distractions – dual citizenships, damaging Tweets from the past, gaffes and
miss-steps, a dilemma over the kids stuck in Syria, craziness from the frotting
wanker Advance Australia’s Captain GetUp, more embarrassment from George
Christensen and the usual unhelpful intervention from Tony Abbott.
And bigger than all of
them the disaster of Notre Dame, already the subject of demented conspiracy
theories involving Islamic Jihadists. There were even a few hasty extra
promises aimed at a public well and truly promised out – and there are four
weeks to go. But mainly there was noise – if anyone could be bothered to
listen.
The loudest, most
belligerent, the most repetitive and of course the shoutiest was Scott
Morrison, screaming liar about the policies of Bill Shorten – or rather his
interpretation of them, which was not the same thing. Somewhat reluctantly
Shorten responded, calling ScoMo a liar in return.
Either or both may be at
least partly right, but the problem is that that the argument, to flatter the
brawl, is going way over the heads of the hardworking taxpayers at whom it was
aimed. The figures of the cost of the various agendas have now escalated from
the hundreds of millions to hundreds of billions – fantasy numbers
incomprehensible to normal workers.
And as a result, they
have turned off; most don’t believe them, especially when they have been
projected beyond two or more elections, but in any case they have been
dismissed as simply noise – increasingly extravagant claims and counterclaims,
assertions and contradictions, a blur of incomprehensible statistics,
page after page of tables about who wins and who loses in one, five
or ten years time, endless pots of gold at end of ephemeral rainbows.
This is not just
ordinary noise – it is more properly white noise, a background buzz whose only
purpose may be to induce sleep. And it is unlikely to let up, which in the end
will not be good news for ScoMo’s marketing strategy.
However, he has no real
choice – the economy is his only hope, the coalition’s chosen battleground, and
if he cannot defeat Shorten in that field, he effectively has nothing left.
He has tried to broaden
the attack, bellowing that everything depends a strong economy – it is only
through his diligence that Australia can provide schools, hospitals, roads, the
environment – the whole shebang.
And in one sense that is
true, but in the other – the perception that the economy is not being used to
benefit the broad commonwealth, but is being subverted to give
concessions, lurks, perks and rorts to favour the fat cats who fund Liberal
Party coffers – is utterly counterproductive, and Shorten appears to be getting
some traction for this heresy.
Big issues discerned by
a war-weary electorate – climate change, obviously, but also health, education
and welfare he is celebrating – are all largely under Labor’s control
And Morrison can only try
and shout him down, because the other big issues discerned by a war-weary
electorate – climate change, obviously, but also health, education and welfare
he is celebrating – are all largely under Labor’s control…..
Read the full article here.
Labels:
election campaigns,
elections 2019
Morrison Government signed off on a controversial uranium mine one day before calling the federal election
ABC
News, 26
April 2019:
The Morrison Government
signed off on a controversial uranium mine one day before calling the federal
election, and did not publicly announce the move until the environment
department uploaded the approval document the day before Anzac Day.
The Yeelirrie Uranium
mine, located 500 kilometres north of Kalgoorlie in Western Australia, requires
both federal and state approval.
The state approval of
the proposed mine is still being fought in the state's Supreme Court by members
of the Tjiwarl traditional owners.
In 2016, the West Australian Environment Protection Agency advised
the mine not be approved, concluding it posed too great a risk of
extinction to some native animals.
The former Liberal
Barnett government controversially approved the mine in 2017, just weeks before
it lost the West Australian election.
Canadian company Cameco,
the world's largest uranium producer, is seeking to develop the uranium mine,
which would cover an area 9km long and 1.5km wide.
It would involve the
clearing of up to 2,422 hectares of native vegetation.
It is also approved to
cause groundwater levels to drop by 50cm, and they would not completely recover
for 200 years, according to Cameco's environmental reports.
A spokesperson for
Environment Minister Melissa Price said the approval was subject to 32 strict
conditions to avoid and mitigate potential environmental impacts.
Traditional owner of the
area, Tjiwarl woman Vicky Abdullah, said she was surprised by the announcement,
and was hoping for the project to be rejected.
"It's a very
precious place for all of us. For me and my two aunties, who have been walking
on country," she said.
Mine approval a
controversial move ahead of caretaker mode
Simon Williamson,
General Manager of Cameco Australia, told the ABC he was pleased Ms Price had
approved the mine before calling the election.
"Yeah, that's
likely to raise questions about rushed decision and all that stuff, but the
state [government] made their decision in January 2017," he said.
"The timing was
such that all of [the assessment] was completed to allow her to sign off before
the election. I think it's quite appropriate and I think the minster would want
to sign off on projects on her plate before she goes to an election……
Dave Sweeney, an
anti-nuclear campaigner at the Australian Conservation Foundation said the
timing suggested the decision was political.
"We need decisions
that are based on evidence and the national interest, not a company's interest
or not a particular senator's or a particular government's interest," he
said.
"This reeks of
political interference rather than a legal consideration or due process."
The approval is one of
several controversial moves the Government made before entering caretaker mode,
where such decisions would be impossible, including approving Adani's two groundwater management
plans for it's proposed Carmichael coal mine.....
The
Guardian, 27
April 2019:
A multinational uranium
miner persuaded the federal government to drop a requirement forcing it to show
that a mine in outback Western
Australia would not make any species extinct before it could go ahead.
Canadian-based Cameco
argued in November 2017 the condition proposed by the government for the
Yeelirrie uranium mine, in goldfields north of Kalgoorlie, would be too
difficult to meet.
The mine was approved on
10 April, the
day before the federal election was called, with a different set of
conditions relating to protecting species.
Environmental groups say
the approval was politically timed and at odds with a 2016 recommendation
by the WA Environmental Protection Authoritythat the mine be blocked due to
the risk to about 140 subterranean stygofauna and troglofauna species – tiny
animals that live in groundwater and air pockets above the water table.
A Cameco presentation to
the department, released to the Greens through Senate estimates, shows the
government proposed approving the mine with a condition the company must first
demonstrate that no species would be made extinct during the works.
Cameco Australia said
this did not recognise “inherent difficulties associated with sampling for and
describing species”, including the inadequacy of techniques to sample
microscopic species that live underground and challenges in determining whether
animals were of the same species. It said the condition was “not realistic and
unlikely to be achieved – ever”.
The condition did not
appear in the final
approval signed by the environment minister, Melissa Price, which was
made public after being posted on the environment department’s website on 24
April…..
Monday, 29 April 2019
Only 19 days out from the 2019 federal election and Newspoll results tighten
Only 19 days out from the 2019 federal election and the losing streak is
not yet over for the Morrison Government.
The last time the Coalition were ahead on a Newspoll Two
Party Preferred (TPP) basis was on 2 July 2016 when the Turnbull
Government stood at 50.5 per cent on the day of the 2016 federal election.
Which means the losing streak has now stretched to just under 34 months.
53rd Newpoll results – published 29 April 2019:
Primary Vote – Labor 37 percent (down 2 points) to Liberal-Nationals 38 per
cent (down 1 point), The Greens 9 per cent (unchanged), One Nation 4 per cent
(unchanged).
Two Party Preferred (TPP) - Labor 51 per cent (down 1 point) to Liberal-Nationals Coalition
49 per cent (up 1 point).
Voter Net Satisfaction With Leaders’ Performance – Prime Minister Scott Morrison
-1 point (down 1 point) and Opposition Leader Bill Shorten -12 points (up 2
points).
If a federal election had been held on 29 April 2019 based of the
preference flow in July 2016, then Labor would have won government with a
majority 77 seats (down 5 seats since 16 April poll ) to the Coalition's 68 seats
(up 5 seats since 16 April poll) in the House of Representatives.
According to Antony Green's Swing Calculator the 27-28 April 2019 Newspoll results will see the Nationals retain the Page and Cowper electorates and Labor retain the Richmond electorate.
In other words the
status quo is predicted to remain for another three years – the Nationals
having held Page since 2013 and Cowper since 2001. Labor has held Richmond since
2004.
Candidates standing in Richmond electorate at the 18 May 2019 federal election
Echo
NetDaily, 26
April 2019:
There are eight
candidates for the federal electorate of Richmond, which covers the Byron,
Ballina and Tweed shires.
The seat has been held
since 2004 by Labor’s Justine Elliot, and like the state seat of Ballina
(Byron and Ballina Shires), the strong Byron Green vote has helped Labor’s
Elliot maintain power.
ABC election guru Antony
Green describes the electorate of Richmond: “The Green victory in the state
seat of Ballina was overwhelmingly owing to Green support in Byron Shire, where
rich retirees and alternative lifestylers have flooded into a former rural
shire. The Nationals still won Ballina itself, while Green support in the state
seat of Tweed, making up the northern half of Richmond, was only 13.3 per cent.
A Green victory in Richmond probably requires the Greens to pass Labor with
then hope of then defeating the National Party on preferences. Given the
increasing urbanisation of Richmond, it may be the Liberal Party will
eventually return to contesting Richmond, further complicating the contest”.
Candidates in Ballot Paper
Order
1. Ronald McDonald, Sustainable
Australia
2. Hamish Mitchell, United Australia
Party
3. Morgan Cox, Christian Democratic
Party (Fred Nile Group)
4. Justine Elliot, Labor
5. Ray Karam, Independent
6. Tom Barnett, Involuntary Medication
Objectors (Vaccination/Fluoride)
7. Matthew Fraser, The Nationals
8. Michael Lyon, The Greens
Early
voting starts on Monday 29 April 2019 at 8.30am.
Early voting centres for the Ricmond & Tweed valleys and elsewhere can be found at:
https://www.aec.gov.au/election/voting.htm#voting
Early voting centres for the Ricmond & Tweed valleys and elsewhere can be found at:
https://www.aec.gov.au/election/voting.htm#voting
Labels:
elections 2019,
Richmond electorate
Scott Morrison and News Corp need fact checking - again!
The Australian Labor Party released its
dividend
imputation policy in 2018 and began to come under sustained political
attack by the Morrison Government and News Corp with claims that there was a
$10 billion dollar hole in Labor’s costing of its policy.
On 18 June
2018 the Parliamentary Budget Office issued
a media release:
Imputation
credits policy costing
Earlier today, comments
have been made about the Parliamentary Budget Office (PBO) estimates of the
gains to revenue that may flow from the Australian Labor Party’s (ALP’s) policy
to make imputation credits non-refundable.
“The PBO brings our best
professional judgement to the independent policy costing advice we
provide. We have access to the same data
and economic parameters as The Treasury and draw upon similar information in
forming our judgements,” Parliamentary Budget Officer Jenny Wilkinson stated
today.
“We stand behind the PBO
estimates that have been published by the ALP in relation to this policy,
noting that all policy costings, no matter who they are prepared by, are
subject to uncertainty.” In its advice,
the PBO is explicit about the judgements and uncertainties associated with
individual policy costings.
The PBO confirms that it
always takes into account current and future policy commitments, as well as
behavioural changes, in its policy costings.
In this case, as outlined at the recent Senate Estimates hearings, these
included the superannuation changes announced in the 2016–17 Budget and the
scheduled company tax cuts. In addition,
the PBO explicitly assumed that there would be significant behavioural changes
that would flow from this policy, particularly for trustees of self-managed
superannuation funds.
The PBO was established
as an independent institution in 2012 with broad support from the
Parliament. A key rationale for the
formation of the PBO was to develop a more level playing field, by providing
independent and unbiased advice to all parliamentarians about the estimated
fiscal cost of policy proposals. The
purpose of establishing the PBO was to improve the public’s understanding of,
and confidence in, policy costings and enable policy debates to focus on the
merits of alternative policy proposals.
Ten months later on 25 April
2019 News Corp’s The Daily Examiner ran an article on page 8 concerning Labor’s
dividend imputation policy which stated:
The independent
Parliamentary Budget Office has estimated Labor’s plan would save $7 billion
less over a decade than the party expects and that it would affect 840,000
individuals, 210,000 self-managed super funds (SMSFs) plus some bigger funds.
Now the
Parliamentary Budget Office publishes
the requests for information it receives, including requests for policy implications and
costings, however there appears to be no new request for information and
costings on Labor’s dividend imputation policy on its website.
Morrison
& Co have been caught out misrepresenting the source of their costings
before and even flat out lying on occasion, so one has to suspect the veracity
of their latest attack on this particular policy.
It's just as likely costings and other figures were done on the back of an envelope by Morrison or Frydenberg.
Sunday, 28 April 2019
Page Electorate candidates ballot paper positions and early voting centre information
This is what the Page electorate ballot paper will look like on 18 May 2019:
Early voting starts on Monday 29 April 2019 at 8.30am.
Early voting centres for the Clarence Valley and elsewhere can be found at:
https://www.aec.gov.au/election/voting.htm#voting
Labels:
elections 2019,
Page electorate
Climate Change: It is time to panic
'I hope that its foundations are strong. I hope that our foundations are even stronger.' — Teen climate activist Greta Thunberg wants us to come together to save our planet like we did to save the Notre Dame pic.twitter.com/obhOhfNKuL— Tomthunkit™ (@TomthunkitsMind) April 22, 2019
Labels:
climate change,
extinction event
Saturday, 27 April 2019
Tweet of the Week
I’m struggling with this.. Did @PatsKarvelas really just read out a text she received from Barnaby Joyce begging for clemency over #watergate? Is Barnaby drunk at 9:30am? #Insiders— Terry Serio (@TerrySerio) April 20, 2019
Labels:
Barnaby Joyce,
water security
Quotes of the Week
“The ABC's Vote Compass has
been harvesting the opinions of Australians for three elections now……The vast
majority of respondents — 78 per cent — think that the decision to remove
Malcolm Turnbull in August last year was the wrong call. That conclusion is
drawn from 153,354 responses to Vote Compass between April 10 and April 16……Among One Nation voters, 59 per
cent approved of Mr Turnbull's removal, while 41 per cent disapproved. ” [Journalist
Annabelle Crabb writing for ABC News
online, 19 Aptil 2019]
“Pentecostalism is
in fact the perfect faith for a conviction politician without convictions.” [Writer & historian James Boyce writing in The
Monthly, Februart 2019]
Labels:
elections 2019,
libspill,
religion
Friday, 26 April 2019
"Stop Adani" convoy gets good reception as it passes through the NSW Northern Rivers region
Supporters at Ferry Park, Maclean, on Pacific Highway heading north Photo: The Daily Examiner online |
The Daily Examiner, 22 April 2019, p.4:
Protesters came out in
support of the anti-Adani convoy as it made its way through the Clarence Valley
yesterday.
Up to 180 cars, many of
them electric, decorated in “Stop Adani” paraphernalia made their way along the
Pacific Highway as part of a two-week campaign, organised by conservationist
Bob Brown, to stop the proposed Carmichael coal mine.
Karen von Ahlefeldt said
many in the convoy stopped for a chat and were “boosted” by the show of
support.
“A lot of people
standing there wished they could be on the convoy, this was a good chance for
them to be part of it,” Ms von Ahlefeldt said.
Clarence Valley
Councillor and Greens party member Greg Clancy stood at South Grafton waving on
the cars as they made their way north.
“Politicians are not
listening, and some of the public don’t understand,” Cr Clancy said.
“They think it is jobs,
we need coal, but we don’t, we are phasing it out. Coal is not the future, it
is the past.”
He said it was
unthinkable to “dig up more of the Galilee Basin” and the proposed coal mine
would be “contributing to climate change”.
Cr Clancy said movements
such as the convoy were important steps to making change.
“Bob Brown has said this
is going to be another Franklin River issue,” he said.
“People are not going to
stand by. There will be protests, there will be arrests, it will be big.”
“You just have to look
at how many vehicles have gone past today to know it’s going to be big.”
Mr Clancy called on
politicians to commit to oppose the Queensland mine ahead of the federal
election next month.
Listen up @billshortenmp and @ScottMorrisonMP - we’re heading headfirst for climate catastrophe. @BobBrownFndn leads the #stopadaniconvoy up to Galilee Basin. Here we are at #mullumbimby for the 2nd rally of the day, with an incredible turnout. #auspol pic.twitter.com/fYDwOSDHZZ— Ellen Kirkwood (@Nelled) April 21, 2019
Thursday, 25 April 2019
The claims by Coalition candidates grow even more absurd
Voters have been treated to the absurd spectacle of the Liberal Prime Minister and his ministers accusing Labor of wanting to steal tradies utes, of wanting to end weekends as well as lying about how quickly electic cars could be charged (in fact in Australia right now an EV can be charged in 8 minutes by JET Charge) and of conspiring with the Greens to introduce death taxes.
Now we have a Queensland Llberal-Nationals candidate, Gerard Rennick, stating that helping families send three-year-olds to pre-school is a Labor Party conspiracy to strengthen government control over child raising.
Then we had this from the Liberal-Nationals arch conspirator.....
ABC
News, 23
April 2019:
The weather bureau has
been tampering with temperature data in order to "perpetuate global
warming hysteria", according to an under-fire Coalition candidate.
The Bureau of
Meteorology (BOM) has strongly rejected the conspiracy theory being peddled by
Queensland Senate hopeful Gerard Rennick.
Shades of that hard right lobby group, the Institute of Public Affairs!
What will be the next desperate, far-fetched claim?
When old political enemies go two rounds on social media
The fighting is getting dirty during this federal election campaign.
I think that the former Member for New England Tony Windsor managed to floor the current Member for New England Barnaby Joyce in this round......
Joyce up off the canvas for another round.....
Oh dear. Jab went home and Joyce now sporting a cut lip.
Labels:
Australian politics,
election campaigns,
Social media,
Twitter
Wednesday, 24 April 2019
Punters still expect Labor to win on 18 May 2019
Labels:
elections 2019
The Trouble With Water: 'ghost' water begins to haunt the Liberal-Nationals election campaign
“It is well understood and agreed that water in the Murray-Darling Basin has been overallocated and extracted at rates that are unsustainable.” [The Australia Institute, February 2018]
Eastern Australia Agriculture Pty Ltd (EAA) owns
water entitlements at two properties in the lower Balonne area of the
Condamine-Balonne region The Kia-Ora property is situated approximately 7km
south of St. George, Queensland, along the Balonne River. The Clyde property is
located 10km south-west of Dirranbandi, Queensland.
"Kia
Ora" reportedly totals 18,841 hectares and has water entitlements of 36,705 megalitres, while "Clyde" is said to total 18,743 hectares with water entitlements of 30,289 megalitres.
EAA also
appears to hold Queensland water licences which allows it to harvest overland
flows/flood waters from both properties.
Questions have arisen with regard to the sale of some of this water.......
Questions have arisen with regard to the sale of some of this water.......
The Government’s been buying up water at record prices, leading to millions of dollars flowing to offshore tax havens. But now, two of our top pollies are facing questions over just who is making a fortune off our water.@HamishNews and @MichaelWestBiz bring you this report pic.twitter.com/5UTH1NHJzR— The Project (@theprojecttv) April 18, 2019
At various times prior to entering federal parliament in September 2013 Liberal MP for Hume and Australian Minister for Energy Angus Taylor was reportedly a co-founder and director of Eastern Australia Irrigation, a director of and company secretary for Eastern Australia Agriculture and was also a paid consultant for EAA.Ever wondered how that $79M 'gift' of taxpayers money to a SE Qld irrigator was spent? Wonder no more - this is what 'ghost water' can buy the seller #AusVotes2019 pic.twitter.com/cYOE8CvqJ9— no_filter_Yamba (@no_filter_Yamba) April 16, 2019
đź’§Angus Taylor YESTERDAY: “has never had a direct or indirect financial interest in EAA or any assoc’d company.”— Hamish Macdonald (@hamishNews) April 19, 2019
TODAY: He was also a consultant for EAA 09/10 “on normal commercial terms”.
TONIGHT: there’s a difference between ‘an interest’ & being paid as consultant. #auspol pic.twitter.com/AwwWGznyNz
The Minister for Energy Angus Taylor, former deputy-prime minister and federal agriculture and water resources minister, the current National Party MP for New England Barnaby Joyce, and the federal Dept. of Agriculture and Water Resources have all issued statements taking issue with concerns being expressed over this particular water sale and denying any wrong doing. Both ministers have threatened legal action for defamation.
The Queensland Government denies being party to this water sale.
The Morrison Government is now facing calls for an inquiry into the Murray-Darling plan water contracts signed off by former minister Joyce.
BACKGROUND
The Queensland Government denies being party to this water sale.
The Morrison Government is now facing calls for an inquiry into the Murray-Darling plan water contracts signed off by former minister Joyce.
BACKGROUND
Ghost Water – licences for unreliable/unverifiable amounts of temporary water sold
to government for use as environmental flow water.
Overland flow is “water that runs across the land after
rainfall, either before it enters a watercourse, after it leaves a watercourse
as floodwater, or after it rises to the surface naturally from underground…..You
can take overland flow for any purpose unless there is a moratorium notice or a
water plan that limits what can be taken.” [Qld Government, Business
Queensland. January 2019]
Applications
can be made for a water licence for the capture of overland flow water.
“A
water licence is an entitlement to take water which is attached to land
therefore, unlike a water allocation, it is not an asset in its own right.
Water licences cannot normally be sold independent of land unless there are
management rules in place which allow permanent transfers (relocations) to
occur…..The relocation of a water licence enables a licensee to transfer
ownership of the entitlement, permanently moving the licence from the land to
which it is attached, to another parcel of land within the confines of the
rules. This process differs from permanent water allocation trading whereby
water allocations are traded independently of land titles and have their own
registrable title (i.e. water can be held by someone who does not own land).” [Qld Government,
Business Queensland. February
2019]
At the time of the water sales EAA has 7 harvesting licences, of which 4 were for water extraction from the Balonne and Narran rivers, 2 were for collection of overland flow waters and 1 was for irrigation water draw on the Beardmore Dam.
At the time of the water sales EAA has 7 harvesting licences, of which 4 were for water extraction from the Balonne and Narran rivers, 2 were for collection of overland flow waters and 1 was for irrigation water draw on the Beardmore Dam.
Unsolicited offer by EAA to sell overflow water at
https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22publications%2Ftabledpapers%2F59682649-2fa2-43b1-955f-ae16caecef45%22.
Austender records of three EAA water sales to the Dept. of Agriculture and Water Resources - the first by transparent open tender and the remaining to by non-transparent limited tender:
At the time of the first water sale (1,980ML at est. $2,175 per megalitre) Barnaby Joyce was an elected senator on the Opposition benchs and Labor's Tony Burke was federal water minister, at the time of the second and third sales (totalling 27,960ML at $2,745 per megalitre) Joyce was the Australian Deputy Prime Minister as well as Minister for Agriculture and Water Resources.
The first sale under the Labour Government was a result of an open competitive tender, the second and third sales were by unadvertised limited tender which excluded a competitive tender process.
NOTE: In 2008 it appears that EAA sold 10,433ML from its water storage to the Murray-Darling Basin Commission for an unknown amount.
The Australia Institute, March 2018, "That's not how you haggle....Commonwealth water purchasing in the Condamine Balonne", excerpt:
Austender records of three EAA water sales to the Dept. of Agriculture and Water Resources - the first by transparent open tender and the remaining to by non-transparent limited tender:
At the time of the first water sale (1,980ML at est. $2,175 per megalitre) Barnaby Joyce was an elected senator on the Opposition benchs and Labor's Tony Burke was federal water minister, at the time of the second and third sales (totalling 27,960ML at $2,745 per megalitre) Joyce was the Australian Deputy Prime Minister as well as Minister for Agriculture and Water Resources.
The first sale under the Labour Government was a result of an open competitive tender, the second and third sales were by unadvertised limited tender which excluded a competitive tender process.
NOTE: In 2008 it appears that EAA sold 10,433ML from its water storage to the Murray-Darling Basin Commission for an unknown amount.
The Australia Institute, March 2018, "That's not how you haggle....Commonwealth water purchasing in the Condamine Balonne", excerpt:
EAAs original asking
price was $2,200 per megalitre. DAWR displayed Pythonesque haggling skills and
paid a final price of $2,745 per megalitre. DAWR paid 25% more per megalitre
than originally requested by EAA, 139% higher than the Commonwealth had previously
paid for the same type of licence and 85% higher than the average price for a
more reliable type of water licence. The megalitre price was inflated because
it included the cost of a storage that the vendor originally offered to
transfer to the Commonwealth, but that offer was later withdrawn, without
adjusting the price. The storage was used as a justification of the sale, but
not as a condition of the sale.
The water purchased was
for Over Land Flow (OLF) licences, which cannot be traded between irrigators,
because they are attached to land. They have no legal status or any recognition
at a location other than where they were originally purchased. That is, there
appears to be no legal basis for the Commonwealth to ensure it gets to the
places it is intended to be used.
First, tax havens siphon
taxable profits away from jurisdictions like Australia. This means either
increasing the tax burden on individuals and businesses, taking on more debt,
or cutting social services.
These shenanigans are
not always illegal. But what is legal is not always moral or economically
sound. Australia’s fiscal foundations are threatened by the erosion of the tax
base by tricky tax tactics.
Aggressive tax planning
can erode public confidence in the tax system itself. After all, one reason
most of us pay the taxes we owe is that we believe we live in a society where
our fellow citizens do the same.
A fascinating new
dataset released by the Australian Bureau of Statistics helps shed light on
this problem. Across multinational firms operating in Australia, the bureau
reports their operating profit and their taxable profit. What is unique about
these data is that they are reported for firms with majority owners in
different countries. So it is possible to compare across countries, and ask the
question: which nation’s firms have the biggest gap between operating profits
and taxable profits?
For the typical
Australian firm, the gap between operating profits and taxable profits is 30
percent. The figure is pretty similar for multinationals whose owners reside in
the United States (28.4 percent), United Kingdom (26.6 percent) and Japan (28.5
percent).
But for some nations,
it’s a different story. If you’re a Bermuda-owned multinational operating in
Australia, then on average the gap between operating profit and taxable profit
is 88 percent. If you’re a British Virgin Islands owned multinational, the
reduction is 92 percent.[3]
So if you start with ten
dollars of operating profit, then Australian firms report about seven dollars
of taxable profits. The same is true for American, British and Japanese-based
multinationals – ten dollars of operating profit produces seven dollars of
taxable profit.
But for firms based in
Bermuda or the Virgin Islands, and operating in Australia, ten dollars of
operating profit produces just one dollar of taxable profit. That’s a startling
difference……..
Second, tax havens are
the hiding ground.....
Gabriel Zucman, an
economist at University of California, Berkley, estimates that around
four-fifths of money in offshore bank accounts is there in breach of other
countries’ tax laws.[4] .......
A recent study in the
journal Nature Ecology and Evolution found there are even egregious
environmental vandals there too. Following the Panama Papers, the study
found seventy percent of fishing vessels implicated in illegal, unreported and
unregulated catches had been registered in Belize, Panama, or other tax havens
at some point. [5]
Third, tax havens
increase inequality. Offshore wealth held by Australians in tax havens was
approximately 6 per cent of GDP, according to Zucman’s work in 2013. In today’s
prices, that would mean over $100 billion in assets held offshore by wealthy
Australians. [6]..........
Cayman Islands corporate tax rates appears to be zero.
During December 2016,
the Tax Office required Eastern Australia Agriculture to enter into a
Settlement Deed to reduce the interest charged by EAI on convertible notes
issued by EAA.
The interest charges
were required to be reduced from June 2011 when Taylor was still a director of
EAI. The total amount of excessive interest charges was $14 million.
This from EAA’s 2016 annual
report:
“Forgiveness of interest
expense – parent entity
“Following a review by
the Australian Taxation Office (ATO), the company entered into a Settlement
Deed with the ATO on 9 December 2016 and the parent entity agreed to reduce the
interest rate on the convertible note from 12 per cent to an average interest
rate of 7.97 per cent effective from 29 June 2011, resulting in a forgiveness
of interest expense accrued in 2016 and prior years."
The higher the interest
rate charged by the parent, the more money flows from Australia to the
Caribbean. In the parlance of the tax fraternity, this practice of charging
excessive interest rates, in order to maximise the interest payments out of
Australia to a tax haven, is called “debt-loading”.
By 2016, Angus Taylor
was no longer a director of EAI. He had stepped down from the board of the
Cayman Islands company in 2013, the year he entered Parliament. He was a
director however when the financing arrangement was established.
London Stock Exchange, EF
Realisation Company Limited (EFR) Annual
Financial Report, released 22 January 2018, excerpt:
Compulsory Redemption
Mechanism
EF Realisation monetised
various portfolio assets between February and August 2017 which, in aggregate,
comprised approximately 24% of the NAV as at 30 September 2017. The total
net proceeds raised were approximately £4.36 million, made up of £4.26 million
in realised proceeds (including £0.1 million from a corporate action involving
the Company's holding in Energy Future Holdings) and £0.1 million of investment
income (net of expenses). The Company realised its investment in Menhaden
Capital plc in February 2017 which raised £1.2 million, equal to 2.3p per
Ordinary Share. EF Realisation sold a bond holding in Integradoro de Servicios
Petroleros Oro Negro SAPI de CV ("Oro Negro") which raised
approximately £0.5m, and it
received approximately £2.5 million from Eastern Australia Irrigation Limited
which had sold certain of its water entitlements to the Australian Government
and distributed a majority of the proceeds to its shareholders, including EF
Realisation. On 4 September 2017, the Company announced its intention to
implement the Company's first capital distribution, returning £3.0 million
to Shareholders of the approximately £4.36 million in total net proceeds; the
balance of the net proceeds from asset realisations was retained for working
capital purposes…..
All the other
investments in EF Realisation are unlisted and valued by the Directors at their
estimated realisation values and, with one exception, changes in these
valuations have been small. The
exception is an upgrade to the valuation of the Company's minority shareholding
in Eastern Australia Irrigation Limited following that company's sale of water
rights to the Australian Government authorities in August 2017 and the
expectations for the amount of proceeds that can now be realised from the sale
of its farms…..
Eastern Australia
Irrigation Limited ("EAI") is an Australian based company which owns
and operates two farms in Queensland, whose main crop is cotton, along with
various water extraction rights from the Murray Darling River Basin. During the
summer of 2017, Australian Government authorities approached EAI with an offer
to acquire some of its water entitlements. EAI was able to negotiate the price for the water
entitlements to the highest level ever paid, and in August 2017 it completed
the largest ever sale of water entitlements in the Murray Darling River Basin.
EF Realisation owns 9.6% of EAI's shares and, along with other holders,
supported the sale of the water rights. EAI used the majority of the sale
proceeds to return capital to its shareholders, and passed £2.5 million to EF
Realisation. This represented a gain on that part of the EAI holding of £0.34
million or 16.0%. We comment below on the plans to dispose of EAI's farms……
EAI was in the process of selling its farms prior to the
sale of water rights. Proceeds received for the sale of water rights were
attractive compared to the offers received in the farm sale process so the farm
sale process was suspended in order to complete negotiations with the
Australian Government authorities over the sale of water rights. EAI has
now resumed the farm sale process with the intention of using sale proceeds to
repay debt and redeem its shares.
Having sold some of the water rights, the effective size of the irrigable land
that can be used for cotton farming has been reduced by approximately one-third
and it is expected that this, and the decision to sell the farms separately
rather than as a package as last summer, will make the farms attractive to a
broader range of potential buyers. Cotton prices are supported by low crop
harvests in cotton growing regions outside Australia and, at the time of
writing, local rainfall on EAI's farms has prevented a return of drought
conditions. However, until binding bids are received for the farms, the timing
for EF Realisation to redeem or sell its shareholding in EAI and the proceeds
from such a redemption or sale are uncertain.
EF Realisation carries
its remaining investment in EAI at a conservative estimate of the proceeds that
would be received assuming EAI's farms are sold and its shares are redeemed. In
particular, the implied valuation of the farms is less than the value of the
farms used to secure EAI's loan from the Commonwealth Bank of Australia, a
valuation point that has been a floor for proceeds in farm sales. [my yellow highlighting]
After the September 2013 federal election Barnaby Joyce became the Minister for Agriculture and in September 2015 Water Resources was added to his ministerial portfolio.
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