Interest rates on hold

The Reserve Bank of Australia (RBA) left interest rates on hold at 3 percent as predicted.                                                

A  survey by AAP had expected the RBA to leave the cash rate at the lowest since 1960.

Treasurer Wayne Swan said last weekend that it was obvious that rates will rise, while Minister for Financial Services, Chris Bowen, warned yesterday that rates can’t stay low forever.

Some economists believe the first rate rise could come this year, but the general view is that rates will remain on hold until the middle of next year.

In a statement released after the announcement, governor Glenn Stevens said the risk of “severe contraction” in the Australian economy had abated.

“Economic conditions in Australia have been stronger than expected a few months ago, with both consumer spending and exports notable for their resilience,” the statement says.

“Measures of confidence have recovered a good deal of ground.”

The statement adds: “The board’s judgment is that the present accommodative setting of monetary policy is appropriate given the economy’s circumstances.

“The board will continue to monitor how economic and financial conditions unfold and how they impinge on prospects for sustainable growth in economic activity and achieving the inflation target.”

 

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Premier says WA needs skilled Chinese workers

PREMIER Colin Barnett may ask the Federal Government to relax foreign worker allowances to prevent labour shortages at major WA projects.

WA faces severe shortages of skilled workers in 2011, when there is expected to be peak activity in WA’s resources sector, Mr Barnett told a media conference in Perth yesterday.

The premier’s comments come as a large Chinese steel maker, Ansteel, contemplates the viability of developing WA’s first steel mill.

Other massive projects planned for the state include Woodside Petroleum Ltd’s Pluto Liquefied Natural Gas (LNG) project, Chevron’s Gorgon LNG project, a new deep water port at Oakajee and CITIC Pacific’s Sino Iron project.

“I expect we will face serious skills shortages if these projects go together at the same time,” Mr Barnett said.

“Hopefully,  we can build these projects with Australian labour but I expect there will be skill shortages, in particular trades areas.

“We need to be prepared to bring in some of their (Chinese) workers.”

Source  :  www.news.com.au

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Probe into immigration exam cheating

Allegations of cheating by students in immigration exams has seen the launch of a corruption investigation.

Australia’s largest international student service, IDP Australia, is investigating possible corruption among its staff after students in Sydney were caught cheating on exams it conducts for the Department of Immigration, The Sun-Herald newspaper reports.

Copies of the May International English Language Testings System (IELTS) exam were sold for between $12,000 and $18,000, one source claims.

“These have been leaking out for months,” the source told newspaper.

“It’s like a chain of command. It came from the official service who gives it out and takes his cut.

IDP would not confirm how many people had been caught cheating.

“Cheating in IELTS tests is not commonplace,” an IDP Australia spokeswoman said.

“‘However given the high stakes involved, attempts to cheat or engage in other fraudulent activity such as identity fraud do occur.

“Recently in Australia a number of test takers have been detected in their attempt to cheat in the IELTS test. Whether or not it was an internal problem, we don’t know.”

IDP is investigating the matter.

Meanwhile, the Immigration Department has defended its outsourcing of English tests, which have been handled by IDP since 1994.

Source  :  www.ninemsn.com.au

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WA small firms lead recovery from crisis

Signs are emerging that the worst of the global financial crisis is over, according to a new survey, and the State’s small businesses are leading the way.
  
The Commonwealth Bank-Chamber of Commerce and Industry quarterly survey of business expectations, released yesterday, shows that economic conditions in WA appear to be stabilising after six months of decline.
  
CCI chief economist John Nicolaou said that the community could “take heart” from the results and that an economic recovery within the next 12 months was on the horizon.
  
“This survey is an important lead indicator of future economic activity,” he said.
  
“While just over half of all businesses remain pessimistic about the next 12 months, that’s come back from around 75 per cent of businesses that were pessimistic last quarter, and at the same time businesses that think conditions will improve (over the same time) has doubled.”
  
Mr Nicolaou said small businesses in service industries were the most optimistic, with 17 per cent of the firms surveyed believing conditions would improve over the next 12 months.
  
Beaumonde Catering owner Mark Dimmitt said he felt small business was better prepared for the slowdown than in other downturns because it had taken time to flow to Australia from the US.
  
He said that though his trade had been affected and was patchy, February was a record month for his 20-year-old business and he expected an upturn over the next year.
  
Woolworths regional manager Brad Bolin criticised “illogical barriers to doing business”, referring to trading hours in WA.
  
Mr Bolin said “conservative estimates” showed the group would need to employ another 300 staff in WA if trading hours were extended to 9pm.
  
“During this time of economic uncertainty there are still companies (looking) to hire more people — these efforts shouldn’t be undone by illogical barriers to doing business,” he said.
  
Coles and Kmart have said they expected to employ another 350 workers if 9pm trading was approved.

Source www.thewest.com.au

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A Boost for the Housing Industry

The residential construction industry has been assisted by growth in the first time home-buyer activity along with the low interest rate.

Home builders are offering some competitive priced housing, and in the last few months things have started to pick up as we see with the display homes traffic which has increased by around 1000 more visitors a week compared to the same period last year.

With the growing concerns of the recession, some homebuyers are investing in the single storey home which is allowing them to lower their debt, rather than building the two storey home.

The Commercial developments throughout Perth have slowed down, but the ones with less financial risk attached to them are still going ahead.

What is happening is there is a  big demand for the first home buyer homes, therfore a lot of  houses being sold are at this price range therefore bringing down the median house price. 

There are also alternative financing options in WA such as the WA Governments Keystart Home Loans which has helped a lot of new home owners get on the property ladder.

Activity in the residential construction is providing  jobs at time when needed.

The first homebuyer’s stimulus is moving through two stages this year  :

From now until October 1, 2009  $21,000 on a house and land package, or a new house built that  has not been lived in.

$14,000 for an established home.

From October 1 until December 31, 2009 the boost will be lowered to  :

$14,000 for a house and land package, or a new built house that has not been lived in.

$10,500 for an established home.

From January 1, 2010 is to be confirmed.

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WA Chelsea fans bleed blue and white

BLUE and white blood runs in their veins. They eat, breathe and sleep blue and white, and bleed blue and white blood.            

Who are they?

They are the Perth Chelsea Football Club Supporters Group, and they might be coming to a pub near you.

About 70 people, some from the northern suburbs, make up the blue and white army, a small but dedicated band of followers whose mission it is to support and celebrate, lose and lament with the team from their Perth base.

Their fearless leader, president Steve Van Doorn, from Butler, co-ordinates the group’s activity, which mainly consist of late-nights and early mornings in various pubs or supporters’ houses to catch live telecasts of each game in the October to March season.

“The northern suburbs have a strong contingent of more than 35 members who have been meeting regularly in Butler, Quinns, Kinross, Banksia Grove or Landsdale for the last six years,” he said.

Mr Van Doorn said the group ranged in age, from the four- and five-year-old children of members, to men and women in their 60s, some London ex-pats whose passion for the round ball game followed them across the ocean.

FA Cup fever has gripped the group, with a Chelsea versus Everton final on Saturday, May 30.

“It’s a 10pm kick-off, which is really an early night for us considering the telecasts of most games start about 2.45am here,” he said.

“One of our members wore a ‘The Who’ T-shirt to a game we won so now he can’t take it off until we’ve won the final – it’s just a superstition but he wears that shirt like a badge of pride.”

Source   www.inmycommunity.com.au

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Great white shark spotted off Scarborough beach

 

• A great white shark has been sighted circling a whale carcass near a popular Perth beach. 

Floating about six nautical miles west of Scarborough Beach, the carcass is believed to have attracted the shark, which was spotted on Sunday.

WA Department of Fisheries spokesman Tony Cappelluti said he was concerned the dead whale would float closer to the shoreline.

“While the carcass is a long way off any Perth beaches, it is important that boat users or divers are aware of the potential increased shark activity near the carcass,” Mr Cappelluti said.

“There has also been another shark sighting this morning at Strickland Bay on Rottnest Island, where warning signs were erected several days ago after sightings made during the week.”

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First Home Owner Grants

A NATIONAL affordable housing organisation has called on the Federal Government to scrap its first-homeowner grant.

The grant, which was raised from $7000 to $14,000 for existing dwellings and from $14,000 to $21,000 for new homes as part of Labour’s $10.4 billion stimulus package last year, is due to expire on June 30.

The National Shelter has called on Treasurer Wayne Swan to axe the scheme when he hands down his second budget tomorrow, saying it inflates housing prices beyond the value of the grant.

“We’d be in favour of getting rid of all of it,” chief executive Adrian Pisarski told ABC Radio today, adding if the scheme was continued, it should be means-tested.

“That actually targets those lower-income families who really struggle to get into the housing market and doesn’t advantage wealthy families who can support their kids into the market at the cost of those lower income families.”

But the Master Builders Association says the enhanced scheme should be kept as it is, minimising the effects of the global financial crisis.

“We put to the government that … the best bang for the taxpayers’ buck would come from keeping the boost for new housing,” chief executive Wilhelm Harnisch said.

“It does generate new activity, it does generate jobs, it also has the multiply effect into retail, manufacturing and other sectors.”
http://www.news.com.au

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