Feeds:
Posts
Comments

Posts Tagged ‘delivered’

Reserve Bank governor Glenn Stevens has signalled interest rates are on their way back up with mortgage rates likely to edge up between half and a full percentage point.

Giving evidence to the House of Representatives economics committee in Canberra, Mr Stevens said the RBA’s focus continued to be on what mortgage rates were offered by commercial banks rather than on the Reserve’s official cash rate.

He said given the commercial banks had lifted rates over and above what the RBA had done, there was still about a half and a full percentage point to go before mortgage rates were back to what the Reserve would consider close to their long term average.

“There’s a little distance to go yet before I think you could characterise the setting of interest rates as normal or average,” he said.

The RBA surprised markets by leaving official rates on hold at its February meeting.

Mr Stevens said on top of the Reserve’s own lift in official rates, the commercial banks actions had effectively delivered three and a half interest rate rises to mortgages cases, and in the case of Westpac customers, four rate hikes.

He said one of the advantages of lifting rates as the RBA did in the last three months of 2009 was that it could hold rates in February and get a clearer picture of how the economy was travelling.

“You get that luxury when you can wait a little a bit further down the line,” he said.

Mr Stevens said Australia had performed much better than even the RBA had expected out of the global recession.

But he warned that meant the economy was now heading into an upswing stronger than otherwise would have been the case.

“With the economy having had only a mild downturn with begin the upswing with less spare capacity than would typically be the case after a recession,” he said.

“There’s less scope for robust demand growth without inflation starting to rise again down the track.

“Monetary policy must be careful not to overstay a very expansionary setting.”

Mr Stevens said the resources sector in particular was looking to grow quickly, with the terms of trade likely to head back to the record highs seen in 2008 this year.

He also highlighted the strength of Australia’s sovereign debt position, hosing down fears the country was carrying too much debt.

“Australia’s position is by any measure very strong indeed,” he said.

The governor also played down fears raised by Opposition finance spokesman Barnaby Joyce that Australia could default on its debts.

Mr Stevens said Australia had never defaulted before and there were no signs it would now.

“I very much doubt there ever will be,” he said. 

“Monetary policy must be careful not to overstay a very expansionary setting.”

Mr Stevens said the resources sector in particular was looking to grow quickly, with the terms of trade likely to head back to the record highs seen in 2008 this year.

He also highlighted the strength of Australia’s sovereign debt position, hosing down fears the country was carrying too much debt.

“Australia’s position is by any measure very strong indeed,” he said.

The governor also played down fears raised by Opposition finance spokesman Barnaby Joyce that Australia could default on its debts.

Mr Stevens said Australia had never defaulted before and there were no signs it would now.

“I very much doubt there ever will be,” he said.

Source www.thewest.com.au

Advertisements

Read Full Post »

AUSTRALIA has delivered a blunt message to India that it is selling education, not visas, even as the Rudd government deploys its most senior ministers to patch up relations damaged over a series of Indian student assaults.

Trade Minister Simon Crean, whose visit to India this week overlaps that of Deputy Prime Minister Julia Gillard, outlined to the Confederation of Indian Industry yesterday federal government measures to crack down on shonky education and training providers in Australia.

But he said the crackdown could be successful only if similar action were taken in India to close down shonky education and immigration agents running scams to secure permanent Australian residency through student visas.

“Let’s be clear, we are offering a quality education in a safe environment,” Mr Crean said yesterday. “The quality of our education is what we are promoting, not the visa attached to it.

“For this to succeed, we also need the co-operation of the Indian government. The fact that politicians in both countries have been forced to focus on the issue improves the odds of coming up with a better system.”

Ms Gillard is understood to have delivered a similar message during meetings with Indian Human Resources Development Minister Kapil Sibal and, late on Tuesday night, with Indian Prime Minister Manmohan Singh, where greater engagement between the two countries on defence, energy and climate change were also discussed.

Mr Crean denied Australia’s international education industry needed to be remarketed in India, despite the fact it is widely seen — and in some areas promoted — as a pathway to permanent residency.

But he conceded better co-operation between Australian government agencies was also needed to help stem student visa abuses.

What the student issue has done is shed a light on the importance of interaction between Austrade, the Department of Foreign Affairs and Trade and those that market our services in the Department of Education, Employment and Work Relations in the protection of our brand,” he said yesterday.

In just eight days, India will have hosted three of Australia’s most senior politicians, Mr Crean, Ms Gillard and Wayne Swan.

By the end of the year, a total of eight Australian ministers will have graced Indian soil.

The ministerial offensive is aimed at patching bilateral relations, damaged by a recent series of attacks on Indian students in Australia, as well as building trade relations with the emerging Asian superpower.

Mr Crean, who is in India for a two-day meeting of G20 trade ministers ahead of the next Doha round of WTO talks in Pittsburgh later this month, said Australia’s trade relationship with India had historically been “underdone”.

The ministerial visits — which will culminate in a tour by Kevin Rudd later this year — were designed to correct that.

“We understand the fundamental importance of India to our future, just as we do China and the rest of Asia. This is going to be the fastest-growing region in the world for the next couple of decades, it is the place to be,” he said. “Australia fortunately positioned itself for that a couple of decades ago but we have to renew the effort.

“Obviously, if there is a hiccup in the relationship, as there has been here over student safety, of course we have to address it. Visits here are an important part of that.”

Canberra hopes that a successful culmination of the Doha talks — aimed at reducing international trade barriers — will help accelerate free trade agreement negotiations between Australia and India, still at the feasibility stage.

It was also concentrating on building trade ties in infrastructure and energy security areas, with particular focus on investments in gas and coal.

Mr Crean denied that Australia’s refusal to sell uranium to India — a non-signatory to the Nuclear Non-Proliferation Treaty — would hurt the progress of the talks, despite Mr Singh again raising the issue during his meeting with Ms Gillard.

Source  :  The Australian

Read Full Post »

               Article_backpacker-420x0                                                                                                                                                                                                                                                                                                                                                     

The parents of missing German backpacker Jan-Christian Bielenberg arrived from Germany yesterday.

They delivered a heart felt plea to their son at a press conference in Bunbury yesterday morning.

They both were hopeful their son would be found alive and well.

“He is alive … until there is proof of the opposite,” Mr Bielenberg said.

Jan-Christian constantly kept contact with them during his time in Australia.

The last time they spoke to their son was two days before his disappearance.

Senior Sergeant Gardiner said police were still hopeful the young tourist would be found alive and well.

Police ask anyone who may have sighted him or with information to contact Crime Stoppers on 1800 333 000.

 

Read Full Post »

WESTERN Australia’s Liberal Government has handed down its first Budget, delivering a $647 million surplus but warning the state will be in deficit by 2012.

Treasurer Troy Buswell today delivered his first Budget since the Liberal Government came to power last year.

He said the 2008/09 surplus of $647 million would shrink to $409 million in 2009/10, and just $23 million the following year.

By 2011/12 the state will be in deficit to the tune of $513 million.

“Over the past months, as the global economy has been in decline, the state has been hit by large downward revisions to projected taxation revenue, GST grants from the Commonwealth and mining royalties,” Mr Buswell told parliament.

“Since the mid-year review, the Budget has lost a massive $4 billion in forecast revenue from these sources.”

Last year, then treasurer Eric Ripper delivered a surplus of more than $2 billion on the back of a booming commodities sector.

Economic growth remained high at 8 per cent for the 2008/09 financial year.

But forecasts predicted growth would fall into negative territory in 2009/10, with unemployment expected to peak, and business investment to fall by 17.5 per cent.

Mr Buswell said the Government would provide a one-year payroll tax rebate to small businesses with payrolls of up to $3.2 million to help protect jobs.

“Some 6,700 small businesses will be eligible for this payroll tax rebate, which will fully offset payroll tax for around 68,000 employees,” he said.

“The cost of this rebate is estimated at $100 million.”

A $47 million jobs training and skills package, and a $8.3 billion spend on infrastructure in the next financial year are key components of the Budget.
Mr Buswell said law and order were also strong focuses, in line with the Government’s election promises to boost funding for police and pump more money into prisons

Mr Buswell said the Government’s election promise to toughen up sentencing laws and introduce mandatory sentencing for people who assault police was underpinned in the Budget by a significant investment in prison capacity.

 

A total of $655 million will be invested in 2012/13 to create an extra 1657 prison beds across the state.

A record $5.1 billion spend on health services in the next year – rising 5.9 per cent, or $282 million from last year – will include the fast tracking of forward works for a new children’s hospital, the construction stage of the Fiona Stanley Hospital, and new hospitals in two regional centres.

Mr Buswell said the Government would push ahead with public sector reforms in a bid to achieve improved performance and efficiency.

The first stage of the economic audit committee promised by the Government during the last election was complete and a range of hard decisions had delivered $7.6 billion over the forward estimates, Mr Buswell said.

“I am looking forward to the second stage of the economic audit to identify strategies for broader reform over the longer term, so we can ensure the budget stays in surplus,” he said.

Read Full Post »