Australian Federal Election 2016: company tax is a vexing question

In 2014 Treasury made a case for a flow-on to the Australian economy from a 1 per cent tax cut “in the long run” and the Abbott Government reduced company tax for small business by 1.5%, effective 1 July 2015.

This meant that in 2015-2016 the following applied:

(a)  a sole trader in Australia pays the same rate of tax as an individual taxpayer with the same tax-free threshold of $18,200 as the individual. Tax rate brackets range from 19 cents in the dollar if taxable income is between $18,201-$37,000 up to 45 cents in the dollar if taxable income is $180,001 and over; and

(b) a small business with an annual aggregate turnover of less than $2 million pays company tax of 28.5% and businesses with a higher turnover pay 30% company tax. The tax rate for companies is less than the highest rate for individuals.

In December 2014 (updated March 2016) the Australian Tax Office (ATO) created its first corporate tax transparency report for the financial year 2013-14 and the companies listed in this report represented 63% of the approximately 1.1 million companies operating in Australia who reported a taxable income in that tax year. The ATO data tables can be found here.

In 2013-14 company tax was an est. 28% of total income tax revenue received by the federal government and, according to the ATO companies paid total net tax of $67.3 billion.

On 22 March 2016 the ATO released taxation details of 321 private resident companies with listed revenue of $200 million or more in that same financial year.

Of these 30.52% paid no tax and another 31% paid less than the full company tax rate.

Using ATO data the Australian Financial Review published a table of 1,860 companies - with total annual incomes between $100 million and over (public/foreign-owned entities) and $200 million and over (private entities) - which showed that when tax was actually paid the taxation rates for these businesses in practice ranged from as low as 1%-2.5% up to 30%, with only an est. 30 per cent of all these companies paying the full company tax rate.

Yet with an est. 70% of these 1,860 companies not being liable for the full company tax rate and net company tax collected falling to $66.9 billion in 2014-15, the Coalition Government still appears to be hinting that it will consider reducing the company tax rate for a second time.

The Sydney Morning Herald also reporting on 21 March that: Big business wants the rate paid by larger corporations cut to 28.5 per cent to match the rate paid by small companies, and phased down to 25 per cent by 2020 and 22 per cent by 2025. This call by the Business Council of Australia (see paper precis) appears to be backed by some in the small business sector.

Are Turnbull & Co really thinking of giving in to a greedy cash clawback by big business, some of whom are generous political donors?

The prime minister refuses to be drawn before the 3 May 2016 budget papers are released.

Metgasco shareholders are revolting

Northern Rivers communities having contact with Metgasco Limited have come to understand that this coal seam gas exploration and company mining is not a good corporate citizen and, that it is often a stranger to the truth in its dealings with both local residents and media.

It has been a long time coming but finally larger shareholders are noticing what smaller shareholders appear to have known for some time - that the Metgasco board is all talk and no walk.

http://www.asx.com.au/asxpdf/20130930/pdf/42jprppqc9wrj8.pdf

The Letter to Shareholders* mentioned in Metgasco Limited's advice to the Australian Stock Exchange:

27 September 2013
The Shareholders Metgasco Limited
Dear Fellow Shareholders
Over the past months a number of significant shareholders in Metgasco Ltd (the “Company” or “Metgasco”) have expressed their disappointment in the performance of our Company to the CEO and Board of Metgasco. This group of shareholders includes the founders of the Company, shareholders who have supported the Company since listing in December 2004, shareholders located in the Northern Rivers region and proposed local gas customers of Metgasco.
Over the past two and a half years two highly dilutive capital raisings have been undertaken and almost 200 million new shares have been issued. These capital raisings at historically low prices have diluted shareholders of the company by over 50%. No tangible progress has been made by the Company with the proceeds from these capital raisings despite over $27 million being spent by the Company in this period. Most recently (25 July 2013) the Board of the Company decided to reward this performance by the issue of over 10 million shares to employees at a price 20% below the current trading price of the shares.
This group of shareholders has supported the Company through difficult circumstances. However, activist opposition and government dithering does not excuse the Company’s total lack of direction, high spending levels, inadequate planning and an inability to communicate with shareholders.
This group of fellow shareholders is very concerned that there is no strategy for the Company going forward evidenced by the confused letter sent to shareholders by the Company dated 9 September 2013.
Today these shareholders have given notice to the Company of resolutions that they propose to move at the next general meeting of Metgasco and have requested that a meeting be convened by Metgasco to consider these resolutions.
The Proposing Shareholders have nominated three directors to the Board of Metgasco with the intention of ensuring that the strategy of the Company is re-directed towards improving the performance of Metgasco so as to enhance its share price. The interests of the Proposing Shareholders are wholly aligned with other shareholders of the Company which is to ensure that Metgasco achieves its full potential. We do not represent the interests of any other corporate third party.
At the forthcoming general meeting the Proposing Shareholders intend to vote in the following manner.
• The Proposing Shareholders will not support the re-election of Mr Nicholas Heath.
• The Proposing Shareholders will not support the election of Mr Greg Short.
• The Proposing Shareholders will not support the Remuneration Report.
• The Proposing Shareholders will not support the award of shares for the performance of Mr Peter Henderson in his role as Managing Director.
The Proposing Shareholders seek the election to the Board of the following:
• Ms Glenda McLoughlin
• Mr Michael O’Brien
• Mr Stuart Glenn
Summary biographies of these nominees are attached.
Metgasco needs to be focussed and determined at the Board level. The Proposing Shareholders expect that a refreshed Board will ensure enhanced financial discipline and re-focus the efforts of the Company on its core strengths.
We urge you to support this initiative to revitalise the Board of Metgasco.
Yours faithfully
John Vaughan
On behalf of the Proposing Shareholder Group

Metgasco Limited 2013 Annual Report here.

*Northern Rivers residents may recall Byron Bay residents Mr. Vaughan as a letter to the editor writer and online commenter in defence of Metgasco and the coal seam gas industry.

UPDATE

In an obvious effort to stem the shareholder revolt and butress its weak share price, Metgasco Limited issued this media release on 2 October 2013:

METGASCO PLANS TO RECOMMENCE GAS EXPLORATION IN NORTHERN RIVERS NSW

2 October 2013

Metgasco (ASX: MEL) today advises the following:

Metgasco Limited (ASX: MEL) is pleased to announce today that it is initiating plans to recommence gas exploration. The company plans to drill the Rosella-1 conventional gas well in its exploration permit PEL 16 located in the Northern Rivers region of NSW.

Commenting on developments, Metgasco’s Managing Director, Peter Henderson, said that today’s announcement reflects positive regulatory and political developments.

“Six months ago, Metgasco suspended field operations when the NSW government announced major changes to regulatory and administrative procedures. Like Metgasco, major industry players also chose to suspend activity in NSW at that time. However, recent regulatory and political developments, particularly since the September Federal election, have encouraged Metgasco to initiate the activities necessary to enable field operations to recommence”, added Mr Henderson.

Metgasco participated in the successful NSW Energy Security Summit on 26 September 2013, at which the serious gas shortages facing NSW consumers over the coming years were given extensive media coverage. Major energy users, farming community representatives and other stakeholders joined gas explorers and producers in reviewing the very disturbing forecasts of steep gas price increases in all eastern states.

There was strong acknowledgement at the summit by key stakeholders that price increases and potential gas shortages could only be mitigated by additional supplies of gas. In particular, the NSW Resources and Energy Minister, the Hon Chris Hartcher MP, expressed support for NSW gas explorers to pursue new gas supply sources to help moderate the inevitable gas price increases faced by NSW gas consumers. He also made clear to stakeholders that the NSW government’s tight environmental requirements were to remain.

In order to successfully complete exploration drilling, Metgasco will be working with the regulators and conducting a community consultation program to ensure that environmental concerns are addressed and the environmental objectives of the NSW government’s regulatory regime are satisfied, and the community is aware of the Company’s operations.

Following the recent Federal election, the new Federal Industry Minister, the Hon Ian Macfarlane MP, has initiated processes to facilitate dialogue between gas explorers and farming groups in order to bring about a resumption of gas exploration and development in NSW. This work is greatly valued. Mr Macfarlane is supportive of the gas industry and is working to harmonise and simplify regulations across state and federal boundaries. Metgasco strongly supports the need for smart regulation based on sound science.

For over 10 years Metgasco has operated successfully in the Northern Rivers region and has enjoyed the strong support of the majority of landholders and community members with whom the Company works. Over this period, 300 landholder agreements have been put in place, and over 50 wells drilled. Polls conducted by the Richmond Valley Council also show community support for the natural gas industry.

The Rosella-1 exploration well is to be drilled to a proposed total depth of 2,100m on a site 12 km to the northeast of Casino. The well is a commercially high risk well that will test the non-CSG, conventional gas potential of the Greater Mackellar structure. The prospect is interpreted to cover an area of 260 km² and hold a potential mean volume of 1,304 BCF of gas in place, comprising an estimated 456 BCF in the Ripley Road sandstone and 848 BCF in the Gatton sandstone. The primary objective is the Ripley Road sandstone which was tested in Kingfisher-1 at an initial rate of 3MMcf/d. The well will also test the thick sequence of gas bearing strata in the Gatton sandstone which had low permeability in Kingfisher-1, together with the deeper Basal Bundamba Sandstone (a lateral equivalent to the Laytons Range Conglomerate), Ipswich and Nymboida Coal Measures which were below the total depth reached in Kingfisher-1.

If successful in encountering gas, it is likely the well will be tested to assess gas production potential. Metgasco does not currently plan to conduct hydraulic fracturing of the well. However, in the event that it is later determined that hydraulic fracturing has the potential to increase the economic potential of the well, provision will be made for later well re-entry and fracture stimulation. This would be similar to the Kingfisher-1 discovery well where a limited 3m interval was fractured to stimulate gas flow in 2010.

The Company is committing to carry out the preparatory work over the coming months. A final commitment to drill the well is to be made when a suitable drilling rig has been identified, regulatory permits are in hand, and discussions with key stakeholders have taken place. There must also be a continuing expectation that the regulatory and political environment will continue to improve, providing stability and support. With confidence restored, the support of key stakeholders and the timely receipt of approvals, it is anticipated that the well will be drilled in the first half of 2014, depending on rig availability.

About Metgasco

The Natural Gas Company - Metgasco Limited

Our business is about finding, producing, marketing and delivering gas from natural gas reserves.  We are a natural gas company that is focused on developing the coal seam gas and conventionally trapped gas resources of the New South Wales Clarence Moreton basin. 

We have established a large natural gas reserve base and are in the process of converting our gas reserves into gas supplies delivered to customers.  Metgasco has grown its reserve base at a very low cost relative to other companies.  Our finding cost per gigajoule of 2P reserves is amongst the lowest in Australia.  This provides the basis for shareholder value creation in the future.

Michele Perry

Metgasco Limited Direct: +61 2 9923 9124

Is Metgasco being entirely honest with the Northern Rivers?

No-one can deny that Metgasco Limited is a listed public company incorporated in New South Wales, Australia or that it is considered a ‘junior’ coal seam gas mining business.

Also on the public record is the fact that it is the ultimate holding company for Clarence Moreton No.1 Pty Ltd and The Lions Way Pipeline Pty Ltd, as well as being a shareholder in Richmond Valley Power Pty Ltd.

Like many other mining corporations its directors and senior staff have worked for many players in the industry, including Exxon Mobil, and some like Steven Joseph Koroknay hold multiple directorships.

Even Metgasco’s largest shareholder CSG Nominees Pty Ltd is registered in this country – in Perth WA.

All in all it would appear that Metgasco is a true blue Australian company with its eye set firmly on the domestic market as it stated on 24 January this year:

we are seeking approvals to allow us to sell gas locally… by year’s end… to local businesses…

Then there is this.................

Metgasco’s largest shareholder is a wholly owned subsidiary of Liquified Natural Gas Limited (LNG).

LNG’s major shareholder as of 5 February 2013 is China Huanqiu Contracting And Engineering Corporation (HQC) which in turn is owned by the Chinese Government.

This is a flow chart of the relationship between Metgasco, LNG and China.

It would seem that any local gas sales are a minor consideration and that Metgasco sees its future in the export market once Fisherman’s Landing is completed.

Supplying LNG with between 90-260 tj of gas per day for a minimum of 15 years, which appears to be almost all of the total projected daily production at Casino under its current license.

A sustained supply volume which is problematic given that in 2013:

A Bell Potter energy analyst, Johan Hedstrom, said the quality of the coals in the Clarence Moreton Basin was "not as good as it is in the Surat Basin" in Queensland, where much of the CSG development is based. Mr Hedstrom said the coals were lower-permeability which made it difficult to get commercial rates of flow, as Metgasco had found.

"There's a question mark, really, on whether these coals are going to be productive in a commercial sense.  

 

So where is Metgasco heading with its business plan? Is it being honest with North Coast local governments about its prospects? Will it able to meet either the domestic or export aims?

The impediments are obvious; the low rate of proven commercial flow, its present inability to fund construction of the proposed Lions Way pipeline between Casino and the Ipswich gas hub, the fact that in 2012 its major investor had to declare a $6.5 million impairment to its own shareholders due to Metgasco’s sustained low share value, its 17th largest shareholder just publicly abandoning it on ethical investment grounds and, a closing share price on the Australian Stock Exchange yesterday of less than 10 cents.

Metgasco still in share price free fall

 

Still losing friends and influence, coal seam gas exploration and putative production company Metgasco Limited continues its 2013 share price freefall – closing at 0.135 cents on 12 February.

 

ASX 12 month daily line chart for Metgasco Limited

Click on graph to enlarge

How not to conduct yourself as a newly elected shire councillor with mayoral ambitions

Opinion article by The Daily Examiner Editor, Jenna Cairney, 22 September 2012:

Divided council will fail

THERE are some interesting rumblings coming from council quarters and I'd love to be a fly on the wall at this weekend's induction training weekend, which new councillor Andrew Baker this week publicly said he wouldn't attend because it was at a private resort.
I hate to be a fence-sitter but I am trying to reserve judgment on the issue. I'm sure Mr Baker won't mind me referring to him as a rogue councillor.
On one hand, I admire someone who challenges, questions and defies. But I tend to agree with letter writer Greg Clancy today when he says a successful council must work as a team.
The truth is, regardless of whether his cause is noble or not, Mr Baker needs to get the other councillors to vote with him.
Word is, council is planning to hire a media officer in coming months, which should make life interesting for us.
Speaking of media officers, I think if councillor candidate Jane Beeby has any intention of running again in four years, she may be wise to hire one (see Thumbs Up Thumbs Down).
Joke or no joke, publicly bagging Grafton on Facebook made me very defensive and someone who sees us as "fat, sick and nearly dead" is not someone I want representing us on council.
As we have all learned in recent months, the only way for the Valley to survive and prosper is to stick together and take a bit of pride in ourselves and what we can achieve.
Here at The Daily Examiner it's become a mantra. Don't miss Monday's paper for a great story by Kate Matthews about what can be achieved when we take a united stand.

The politically pugnacious property developer and recently elected Cr. Andrew Baker has apparently decided who his enemies are, even before his first Clarence Valley Council ordinary monthly meeting, if this Letter to the Editor in The Daily Examiner on 24 September 2012 is any indication:

Response to editorial

HELLO Jenna,
What an interesting page 14 you have in your paper of Saturday 22nd September last.
Are you suggesting I should join "the team" in the way you joined the $8000 State Government-sponsored weekend away in Sydney recently? That $8000 has sure prevented any more bites at that hand.
Your page does many things to draw attention to opinions of me and a couple of failed candidates.
You give failed candidate Clancy free reign to show his true self in his presumption to lecture me on how I should conduct myself in public life. Now that is news when the failure seeks to teach the successful. With your encouragement, that's really precious!
Perhaps most disgraceful of all is your use of a prominent article where you seemingly advise all councillors to now think as one mind. You just don't say which one mind we should use? Or did you mean the mind of Guru Greg? In giving your advice you just repeat the worthless advice of failed candidate Clancy - yet you completely ignore the hopes expressed on the same page by the highly-respected, long-time community leader Des Plunkett.
The following facts are available to all of us:
Of the 28,647 formal first preference votes, 11,899 voters (41.5%) did not want any previous councillors returned.
Five of the previous six councillors received a combined total of just 7,515 (26.23%) of the vote.
3,075 voters (10.73%) gave their vote to me (more than 40% of the combined votes of those 5).
1,275 (4.45%) voted for Greg Clancy. He was not elected.
You might further note Clancy admitted to a comprehensive election campaign.
I had no paid advertising, no leaflets, no posters, flyers, letterbox drops, or polling place meet and greet. I did no door knocking or anything else really. I started independent, finished independent-and-alone, and will remain so. I am non-factional, unaligned and am not beholden to anyone.
So you publish the diatribe of a failed candidate telling me where I have gone wrong. Well, Greg now has four years to cry into his glass of organic vinegar.
Perhaps before you next repeat the advice of failed candidate Clancy on how others should conduct themselves in public life, you might avoid the appearance you too have sucked on that glass of vinegar. It just seems your eyes have misted over to the truth of the election outcome.
I accept you have the editorial benefit of giving a malicious spray whenever you feel so moved. Can I suggest you avoid doing it directly into the wind?
Please be clear. I did not ever offer to climb on board the council bus to nowhere. The bus I have witnessed for four years. I would prefer to walk by myself to somewhere than have a jolly time riding to nowhere, thanks.
And please, please, never think I will be encouraged onto the bus by a weekend of indulgence at ratepayers', or taxpayers' expense. MY soul ain't for sale.
I certainly do understand the team mentality thing that some naive people hold up as the answer to every institutional prayer.
This is still apparently the forlorn hope of a team that has trained hard for four years to perfect mediocrity. Of course they will say "let's try it for one more year to see if, by some miracle, a different result occurs". I don't subscribe to the theory that repeating one year of mediocre performance three more times will produce anything better than a wasted four years.
In the meantime, the 73% of voters that didn't want ANY of the five incumbent councillors will be left to wonder how your recycling of advice from a failed candidate can help this Clarence Valley? Please tell them.
Now to the good news.
Your announcement that council has decided to employ a media officer creates another low point in council decision making. This major policy-decision-by-media-release, before all councillors have even heard about it, let alone agreed to it, is a monumental insult to those councillors who thought they would receive some respect when it came to decision making. I didn't naively expect that respect, by the way.
Maybe all our decisions will be made for us by media release?
Of course, and it's clearly too late now, had I been asked if I agreed to this new policy of having a media officer employed in a new position, I would have suggested to my colleagues that we try truth-in-government to see how that feels. And it would have saved the money. Looks like I won't get that opportunity?
Please feel free to encourage my views anytime you like.

Andrew Baker

Clarence Valley councillor

Editor's note: In reference to the trip to Sydney for the Country Expo, I (Jenna Cairney) drove to Sydney to help promote the Valley in my own time. The fuel and my accommodation was paid for by The Daily Examiner.

On the basis of the Editor’s note alone this round goes to The Daily Examiner in the face of Baker’s needless penned aggression.

One has to suspect that Cr. Baker may be trying to cow the local media into not reporting any further on his financial difficulties and the forthcoming fire sale by appointed receivers of ten of his companies'  properties.

Greedy Telstra and Thodey receive another bagging for Northern Rivers job losses

Telstra in Commonwealth Hansard transcript on 10 September 2011:

Ms SAFFIN (Page) (22:13): I am still struggling to understand how Telstra can continue with its plan to close its Lismore call centre, which is based in Goonellabah, axing 116 jobs. I recently spoke in this place about Telstra's lack of corporate social responsibility and its lack of corporate conscience. Yes, it offers community awards and does sponsorships but, really, jobs must come first, not the other stuff. Corporate social responsibility is affected if you do not care about your own workers first.

A few things have transpired since I last spoke in this place. One of those is a community campaign that has seen over 5,000 people—I think it is now up to about 5½ thousand—sign a petition that reads:

We the undersigned citizens of the Northern Rivers call upon Telstra Business CEO Mr David Thodey to intervene immediately to halt any plan to axe up to 116 jobs of employees at Telstra Call Centre in Goonellabah.

We further object to Telstra abandoning its workforce in country Australia and moving jobs offshore, while recording massive profits ($3.4 billion) and awarding generous salary increases for executives.

With the community campaign for the petition a whole lot of people have been involved, particularly my husband, Jim, who has been out coordinating and doing the work on the ground, and I thank him for that.

But guess what? Two other things have happened that really, really rile me to do with Telstra. One is that in the midst of axing jobs not only in Lismore but also in Townsville and other places mooted around Australia—and who knows where else?—Telstra bosses gave themselves a pay rise. One local online comment in the Northern Star newspaper likened it to 'a reward for inefficiency and incompetence'. I had this to say about it:

… Telstra demonstrated this week that it does look after some on the payroll.

"Today local union members and community members organised a sausage sizzle outside the Telstra Call Centre in Goonellabah to protest against the closure.

"Telstra is proposing to close the centre next month with the loss of 116 jobs, and so far about 5000 people have signed petitions calling for Telstra to keep the centre open and save local jobs.

"I have complained to CEO David Thodey about the cruelty of the cuts, and asked him to treat staff well.

"I did not realise when he promised we would look after Telstra people that he meant to start at the top.

"In what is impeccable timing, Telstra's lodged its annual report with the Australian Securities Commission this week, and it includes the news that Mr Thodey is to receive an extra $247,000 in his fixed salary starting 1 October.

"The report shows that Mr Thodey's salary package, including shares and incentive payments, went from $5.1 million in 2011 to $7.69 million in 2012 and now it is to go up by about a quarter of a million.

"In fact, Telstra has found more than $7 million to increase the pay of its type nine executives in the past 12 months.

"And yet they say they have to make this difficult decision of cutting 116 jobs here in Lismore.

"The sad point is, it appears that the executives' incentive payments and share packages rise the more jobs they cut.

"No wonder so many people are outraged at this corporate heartlessness.

Today we also found out—I read it online in various places and also in the Sydney Morning Herald—that Telstra is getting another windfall, pocketing hundreds of millions of dollars in future years due to the competition watchdog effectively cutting the price paid for each minute a phone call spends on another mobile network, from 9c to 6c. This 3c reduction gives Telstra $18 million. Did they pass it on to us customers? No. Maybe they used it to top up the CEO's and executive's salary rises.

Also, Telstra has increased mobile calls on basic phone plans from 35c to 36c. I also remember reading that they are increasing landline costs. There are two things I want to say. One thing about Telstra is that it is almost like it needs an independently funded ombudsman—a Telstra watch—maybe run through CHOICE or something like that so that it is transparent and we get good access. There are a lot of things happening there that we just do not know about. I have said to locals that it is hard when you are contracted with them. Start demanding that we get serviced by locals and that they have local jobs. It will not happen overnight— (Time expired)

Telstra CEO gets a no nonsense letter from Saffin, George and Dowell over Lismore job losses

PARLIAMENT OF AUSTRALIA

HOUSE OF REPRESENTATIVES

Friday, August 24, 2012.

REF: PE.24.08.12.

Mr David Thodey

Chief Executive Officer

Telstra Corporation Limited

Level 40, 242 Exhibition Street

MELBOURNE  VIC  3000.

Dear Mr Thodey,

We write as the Federal, State and local representatives for the Lismore district to formally request that you intervene and reverse Telstra’s ‘business decision’ to close its Goonellabah Call Centre on October 23 this year.

We maintain that the loss of an estimated 116 local jobs from such a closure is not only unnecessary but unacceptable, particularly when Telstra’s digital business streams are reported to be enjoying strong growth.

We seek a full explanation from you; the real reasons which led Telstra’s management team to arrive at such a cruel decision despite earlier public assurances that this particular call centre was safe.

This morning, we stood united on Lismore’s main street – Molesworth Street – to launch a community petition calling on you to intervene immediately to halt any plan to axe your highly skilled and loyal workforce in Goonellabah.

The petition further objects to Telstra abandoning its workforce in country Australia and moving jobs offshore, while recording massive profits ($3.4 billion) and awarding generous salary increases for executives.

Surely, there is a better and more respectful way to treat your Lismore staff, most of whom have to service mortgages or other financial commitments and whose families have strong ties to this community.

During this three-week consultation period regarding the closure decision, we stand ready to negotiate with yourself or your appointed executives on alternative proposals for keeping the call centre operational and profitable for Telstra.

We ask that due to the doubt and uncertainty which employees are feeling about their futures, that Telstra executives travelling to Lismore not intimidate or dissuade staff from seeking advice from CPSU officials.

We seek Telstra’s full co-operation in providing a Rapid Response Team of Federal and State agencies with immediate and unfettered access to the call centre to advise staff on various levels of support available to them.

We provide two points of contact for the Rapid Response Team being put in place:

Mr Terry Watson, Local Employment Coordinator, Richmond-Tweed & Clarence Valley Priority Area, Building Australia’s Future Workforce – 0412 320 077; email terry.watson@deewr.gov.au

Mr Craig Jenkins, Business Development Manager, NSW Trade & Investment – 0411 248 482 or 0266 226 145; email craig.jenkins@business.nsw.gov.au

Mr Watson and Mr Jenkins are experienced public servants who liaised with Telstra during the Grafton Call Centre closure in late 2010.

We are also of the firm belief that two or three weeks is not enough time for staff, who are grieving the potential loss of their livelihoods through redundancy or the upheaval of transfers, to cope with such transition.

Consequently, we ask that the consultation period be extended, in good faith, to several months to allow for a proper, more transparent analysis of all options for keeping these jobs in the Lismore district.

We understand that you have a business to run, but we are appealing to your corporate conscience to do the right thing by your staff and customers here on the Northern Rivers and avoid the kind of public relations disaster which accompanied your withdrawal from Grafton.

Yours sincerely,

Janelle Saffin MP

Federal Member for Page.

Thomas George MP

State Member for Lismore.

Cr Jenny Dowell

Mayor of Lismore City Council.

Australian Carbon Price Liable Entities - 24 July 2012 Update

The Clean Energy Regulator has released an updated list of corporations and councils liable to pay a price for their greenhouse gas emissions in the financial year 2012-13.

Clarence Valley Council appears to be the only Northern Rivers local government on this list, presumably due to landfill emissions.

Full list here.

Update:

As usual the Federal Nationals local Cassandra Luke Hartsuyker is yelling the sky is falling over the issue and making sure not to mention Council's new residential and business waste management scheme which will divert 60% of the valley's domestic waste away from landfill and see greenhouse gas emissions begin to reduce from 30 July 2012.

The James Hardie alleged compensation fund scam drags on through the courts into 2012

Lawyers Weekly March 2011:

“On Friday the High Court also granted leave to appeal to the Australian Securities and Investments Commission (ASIC) against a decision by the NSW Court of Appeal in December last year that overturned fines of $30,000 and five-year corporate board suspensions against seven former non-executive directors of James Hardie.”

High Court of Australia:

Australian Securities and Investments Commission v Shafron; Australian Securities and Investments Commission v Terry; Australian Securities and Investments Commission v Hellicar; Australian Securities and Investments Commission v Brown; Australian Securities and Investments Commission v Gillfillan; Australian Securities and Investments Commission v Koffel; Australian Securities and Investments Commission v O'Brien; Australian Securities and Investments Commission v Willcox; Shafron v Australian Securities and Investments Commission

S174/2011—S181/2011; S173/2011: [2011] HCATrans 293; [2011] HCATrans 294; [2011] HCATrans 295.

And it's not over yet.

Gina Rinehart may yet rue the day she decided to become such as big player on the Australian political stage

When Georgina ‘Gina’ Hope Rinehart (reputedly Australia’s richest woman) decided that she didn’t want climate change mitigation addressed by any national government and also decided to buy a slice of the national media pie as well, she set herself up as a person of interest to the average voter as well the tabloid press.

So when three of her four children took her to court she attempted to suppress the details.

Unfortunately for But liddle ol’ me is really a very private person Rinehart she has been less than successful and finally may have to endure us all knowing more of the Hancock family’s soiled laundry than she might like if the High Court rejects her appeal next Friday.

Ah well, at least she can cry on the shoulder of her good friend Christopher Monckton.

Meanwhile, here is part of an intriguing judgement handed down by the NSW Supreme Court in October 2011:

THE COURT ORDERS THAT:
3. An order that the Defendant as Trustee of the trust established by the Deed of Settlement made 27 December 1988 by Langley George Hancock (" The Trust ") provide to the Plaintiffs:
(a) the accounts of the Trust for the years 1992 to date;
(b) the accounts of Hancock Prospecting Pty Limited for the years 1992 to date.
4. An order pursuant to s 90 of the Trustees Act 1962 (WA) or in the Court's equitable jurisdiction varying the Trust Deed by splitting the trust into separate trusts with one trust as to Gina Hope Rinehart's 17.7% interest in the ordinary shares and the cumulative special shares, as referred to in clause 4 of the Trust Deed (" the First Trust "); and a further trust as to the residue of the trust property in favour of the children of Gina Hope Rinehart (" the Second Trust ");
5. An order in the Court's inherent equitable jurisdiction removing Gina Rinehart as trustee of the Second Trust.
6. A declaration that the Defendant has misconducted herself in the administration of the Trust within the meaning of s 77(2)(b) of the Trustees Act 1962 (WA).

How quickly the story changes once animal cruelty is exposed *WARNING GRAPHIC IMAGES & SOUNDS*

http://youtu.be/Zp-8PpA4upM

This week various media outlets reported that; The NSW Food Authority ordered the immediate halt yesterday to slaughter at the Hawkesbury Valley Meat Processors at Wilberforce, in Sydney's west, after seeing undercover footage apparently taken by a worker at the abattoir.

Since the animal cruelty allegations surfaced there have been professions of innocence or ignorance and, suggestions that what was shown on the video was rogue behaviour on the part of either individual abattoir workers or this one particular business
.

Although these are comforting sentiments for the general meat-eating public, they are unlikely to be based on verifiable fact. The number of workers shown in the video and the relaxed body language suggests that the actions shown were probably commonplace and acceptable within company culture.

A number of local businessess are attempting to deny seeing or hearing anything, however one cannot exclude the possibility that it was common local knowledge that the abattoir was operating in an inapproriate manner.

This morning further allegations emerged in The Australian:

The Weekend Australian viewed a cache of documents dating back to the late 1990s, including correspondence with council and local MPs, detailing alleged ammonia leaks, poisoning and pieces of animal carcass carried by birds on to adjacent properties. Although one case went to court, no prosecution was recorded.

Neither the Federal Labor Government nor the NSW Coalition Government can spin this away and both should act on the matter. The Gillard Government by looking into the possibility of a national abattoir monitoring policy and, the O'Farrell Government by creating legislation which mandates CCTV on all abattoir killing floors and by vigorously prosecuting any wrongdoing.

According to information available on the Internet, HAWKESBURY VALLEY MEAT PROCESSORS PTY LTD,  R W LANGLEY WHOLESALE MEAT PTY LTD and M & A BUTCHERY all share the same physical address at 62 King Road, Wilberforce, New South Wales.

The first two business appear to be connected with Ken and Glenn Langley and the third with Michael and Angela Diasinos along with their sons.

This is M & A BUTCHERY featured in a local food blog in November 2009:

Whilst the family still run the butchery and own the abattoir, the abattoir itself is leased to another party. The meat in the shop though still comes from the abattoir which is only 200 metres away…. A typical day lasts from 6.00am to 6.00pm. The head butcher will set up in the morning whilst Dean goes to the abattoir and works out what to bring into the shop.  

This is the same business in February 2012:

Click on images to enlarge

Previous post concerning the Hawkesbury abattoir.

Another Australian mining company fails to understand what community consultation really means - with tragic consequences* *WARNING: Graphic Images

It is not only Australian-registered corporations like Andrew Twiggy Forrest's Fortescue Metals Group or Chinese-owned Anchor Resources which make a mockery of the concept of community consultation.

Recently another mining corporation (described last year as Australia's 60th largest gold company by market capitalisation) went a step further in Indonesia......

This is what a publicly listed mining exploration company, Arc Exploration, formerly Austindo Resources Corporation N.L., told the Australian Stock Exchange on 4 October 2011 concerning the proposed open pit gold mine at Bima and its current plans to conduct further exploratory test drilling in the 250sq.km mining tenement project it 95% owns and manages:

Snapshot of excerpt from Quarterly Activities Report - September 2011 Quarter

Again on 29 November 2011:

Snapshot of opening paragraphs in Exploration Recommences at Bima

Not quite one month later on 24 December 2011 JATAM - the Mining Advocacy Network reported:

Residents reported to The National Human Rights Commission, which then conducted an investigation on April 2011. On November 2011, The National Human Rights Commission issued a recommendation No. 2.784/K/PMT/XI/2011 for The Regent of Bima, The West Nusa Tenggara Chief of Police, and The Director of PT. SMN. The National Human Rights Commission recommended The Regent of Bima to improve the information system and publicize mining activities; started from exploration to exploitation, and also to suspend the activities of PT. SMN while waiting for the conduciveness of society’s social life. The West Nusa Tenggara Chief of Police was asked to take coordinative and communicative steps with all elements of government and community leaders to prevent horizontal conflicts in Bima. The National Human Rights Commission urged the warranty for residents’ freedom of speech or aspiration (demonstration) in accordance with statutory provisions, and to avoid repressive measures by using weapons with live ammunition in securing rallies.

On 26 December 2011 ABC News reported in the article Indonesian police fire on gold mine protesters:

Video has emerged showing Indonesian police firing on protesters who were demonstrating against a planned Australian-owned gold mine.

Two people were killed and 10 others injured in the incident in the town of Bima on the island of Sumbawa, east of Bali.

The confrontation occurred on Saturday when nearly 1,000 villagers refused to end a week-long blockade of a local port.

Police were ordered to fire directly into the crowd.

Later they can be seen dragging and beating one of the injured protesters.

The group was trying to block the construction of a gold mine, owned by Indonesia's PT Sumber Mineral Nusantara and Australian company Arc Exploration….

Arc Exploration's Board of Directors; investment consultant and former banker Bruce James Watson (Non Exec. Chairman), UK & Indonesia-based mining geologist John Charles Carlile (Managing Director), Indonesian Rich List nominee and businessman George Santosa Tahija (Non Exec. Director), lawyer and mining industry advisor Robert Moyse Willcocks (Non Exec. Director), Indonesian businessman Cahyono Halim (CFO), lawyer Andrew John Cooke (Comp. Secretary) and its Top Twenty Shareholders, might like to explain the company’s extensive consultation process (in partnership with PT. Sumber Mineral Nusantara [SMN] which according to de.indymedia.org has as its Managing Director John Carlile and as its Company Secretary Andrew Cooke).

This extensive consultation resulted in a thousand-strong demonstration and at least three dead at the hands of the civil authority including Arief Rachman, 18, and Syaiful,17 (both allegedly pictured below).

Indonesian police are not admitting to these shootings, however investigations are ongoing.

According to The Australian on 28 December 2011; Indonesia's National Commission on Human Rights is investigating the clash on Christmas Eve at the site of the Arc Exploration project at Bima near the port city of Sape.

The Jakarta Globe had previously noted the connection between another mining company associated with an Arc Exploration director and an alleged $14 million annual payment to Indonesian police for what might be assumed by a reasonable person as being some form of extraordinary 'protection'. In February last year the company involved denied there was any graft involved in these payments.

By 28 December 2011 the Chairman of the Indonesian Human Rights Commission was characterising Arc Exploration's assurances regarding local community support as ill-founded and, raising the possibility that Arc Exploration had paid local police to act as corporate enforcers.

At the same time Australian Greens Senator Chrisitne Milne was saying; Arc employed John Carlile as managing director because of his experience with Newcrest Mining operating in Indonesia.....Newcrest admitted in 2004 it had paid Indonesian security forces to manage its site in Indonesia. Newcrest was registered as an Australian corporation in 1980.
This business relationship with paramilitary police appears to have existed in 2003 and possibly earlier. Various online sources mention payments of $35,000 U.S. dollars a year to a 65-man strong contingent of the Mobile Brigade.
Using  Brimob police against protesters with lethal force was endorsed and possibly encouraged by then Australian Foreign Minister Alexander Downer and the Howard Government according to various media reports at the time.

On 28 December 2011 Arc Exploration gave a brief statement to the Australian Stock Exchange concerning the recent violent events at Bima. However, like the past and present business interests of its board, this does not necessarily create confidence under closer scrutiny.

Snapshot of Further Anti-Mining Demonstrations at Bima

A further short clarification was issued later on the same day.

One has to wonder why anyone would invest in this mining company.

It will come as no surprise to concerned residents and community groups on the NSW North Coast - opposing the proposed antimony mine in the Clarence River catchment area - to find that Anchor Resources Managing Director, Ian Price, was listed in 2003 by Austock Research as Managing Director and Chief Executive Officer of Arc Exploration when it traded as Austindo Resources Corporation N.L. He apparently held this position from 18 November 2002   to 31 July 2006, serving alongside Messrs. Watson, Tahija and Carlile and Cooke.

Nor will communities in Northern NSW battling the high-handed methods of the coal seam gas industry be astonished to learn that until 7 June 2011 Bruce Watson and Robert Willcocks were respectively Non-executive Director and Non-executive Chairman of Orion Petroleum Pty Ltd which currently holds an interest along with Santos-owned Eastern Star Gas in exploration licenses in the Goondiwindi, Kurrabooma, &  Maules Creek areas and, in its own right in the Whalan Creek, Willaroo, Moree and Gwydir districts.

That the Australian mining industry contains complex business relationships is obvious; that this country may be used as a corporate flag of convenience so that foreign nationals can take advantage of tax law favourable to their overseas mining interests is suspected; that certain superannuation schemes may be growing on the back of corporate bullying of small farming communities is a distinct possibility; nevertheless the idea that mining business culture has become so debased as to ignore human rights and civilised behaviour comes as something of a shock.

With communities in rural and regional New South Wales under so much pressure from mining interests and their political supporters, it may be wise to remember the absence of ethics which appears to be festering within both multinational and national corporations these days.

Photographs from no2mininginpalawan.com
Video from YouTube

UPDATE

The Jakarta Post report on 1 January 2012:

Energy and Mineral Resources Minister Jero Wacik said on Friday he had requested West Nusa Tenggara administration to scrap the mining permit of PT Sumber Mineral Nusantara (SMN) after two people died last week during an anti-mining protest. Jero said the province’s governor would order Bima regent, Ferry Zulkarnain, to revoke the permit, which was first issued in 2008 to explore gold in the regency......

Herald-Sun on 28 January 2012:

INDONESIA on Saturday revoked a gold mining exploration permit granted to an Australian miner after a series of violent protests against the project left two people dead last month, reports said.
The decision came after thousands of people on Thursday demonstrated in the city of Bima on Sumbawa Island, east of Bali, with government buildings set ablaze.
''We decided to revoke permanently the permit for the sake of security stability here,'' Bima district head Ferry Zulkarnain told local television station MetroTV.....