Developments

Australian Resources and Energy Group AMMA welcomes today’s confirmation that the Morrison Government will legislate for ‘Project Life Greenfields Agreements’, a crucial industrial relations reform that will create jobs and economic growth by stimulating investment in the resources, energy and infrastructure sectors. “AMMA has advocated the case for Project Life Greenfields Agreements for at least a decade,” Chief Executive Steve Knott said. “The inability to secure industrial relations certainty for the full length of a major project construction phase has been a massive disincentive to investment in the past. “Investors would often scratch their heads as to why greenfields agreements had a maximum duration of four years when applied to projects that take an average of six years to build. It makes no sense and is a very real barrier to securing final investment decision. “This simple but important change will significantly boost Australia’s ability to secure new major project investment in the ultra-competitive post-COVID global marketplace. “The resources and energy sector has displayed remarkable resilience in the face of pandemic-related challenges. The Government is right to do all it can to present an attractive investment platform and stimulate growth in the industry keeping our national economy afloat.” AMMA notes the Federal Department of Industry’s Office of the Chief Economist last week released its Resources and Energy Major Projects Report, strongly indicating that investment in Australia’s resources projects has entered a new growth cycle. The Chief Economist reported the number of resources and energy major development projects increased by 19 per cent to 335 projects, and the value of projects in the investment pipeline increased by 4 per cent to $334 billion. “Once investment is secured and construction is completed, major resources projects deliver revenues of many billions of dollars to state and national accounts, funding public infrastructure and services, […]

Following the Reserve Bank of Australia’s GDP growth rate announcement this morning, CreditorWatch Chief Economist Harley Dale shares his thoughts on which sectors most contributed to the economic recovery and how this will impact government support and stimulus measures. “Household spending was the big driver of the GDP bounce-back. As consumers continue to arise from their involuntary, COVID-induced slumber, it is looking increasingly likely that they will drive a sustainable economic recovery. CreditorWatch data shows that the retail sector was in a deep hole earlier in the year, so in coming months the sector’s performance will provide a key indication as to the pace of our national recovery.   “There were some industry winners in today’s GDP result. As the COVID shackles started to come off there were big gains made by Accommodation and Food Services (+41%), Arts and Recreation Services (+14.7%), Rental, Hiring and Real Estate Services (+7.7%) and Transport, Postal and Warehousing (4.7%). These are all high employment industries that suffered disproportionately under the cloud of COVID, as CreditorWatch data demonstrated. A sustained recovery in these industries will assist in managing the transition away from government support for businesses.    “The JobKeeper and JobSeeker programs have played an integral part in protecting Australia from the worst impacts of COVID. Now that we are receiving increasingly positive updates on the Australian economy, it is appropriate that the Federal Government consider a more refined and nuanced approach to its stimulus measures.    “The Governor is right to caution that it will take some time to bring our nation’s unemployment rate back down. That will remain a key focus of the RBA in 2021 however, these results are better than most people anticipated until only a few months ago and so give us a great foundation to build on.”  

The vulnerable critical manufacturing sector accounts for many cyber security threats according to recent researchfrom Kaspersky with higher levels of risk identified in ICS systems. Kaspersky’s latest report on the state of industrial cybersecurity has some ominous warnings for Australian manufacturers.    This is a significant issue with the Australian federal government addressing it with new legislation. The draft Security Legislation Amendment (Critical Infrastructure) Bill 2020, which is open for consultation, addresses some of the issues and includes a security obligation for critical infrastructure entities and enhanced cyber security obligations for systems of national significance.    Kaspersky recently surveyed 337 global senior leaders including 60 from the Asia Pacific region across all major industries including oil, gas and chemical, manufacturing and energy generation. Of the businesses who participated, 61% had more than 5000 staff.    The survey found 75% of global organisations stating they are very or quite likely to suffer an industrial cybersecurity attack. Of greatest concern is the finding that 27% of respondents from the Asia Pacific fear cyber incidents could lead to loss of life, through service disruption or explosion.   “Unlike our Asian neighbours Australia hasn’t suffered a large-scale cyber-attack that has caused loss of life. But the Australian Government is investing a massive $1.67 billion over the next 10 years to ensure a more secure online world for Australians, their businesses, and essential services,” explains Mr Neil Royle, Cyber Security Consultant, Kaspersky.    “Australia has recently suffered a number of recent cyber-attacks targeting the Australian manufacturing sector, notably the Toll incident, BlueScope Steel being hit by a cyber attack that shutdown its operations globally and the attack on Lion that compromised the production of milk and beer locally,” explains Mr Royle.    In August, the Australian Government released a new framework with security obligations for […]