The Northern Territory news Fri 12 Jul 2013
NT news
The Northern Territory news; NewspaperNT
2013-07-12
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Community newspapers -- Northern Territory -- Darwin; Australian newspapers -- Northern Territory -- Darwin
News Corp Australia
Darwin
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News Corp Australia
https://www.legislation.gov.au/Details/C2019C00042
https://hdl.handle.net/10070/246750
https://hdl.handle.net/10070/581298
www.ntnews.com.au Friday, July 12, 2013. NT NEWS. 43 Surge in jobless a challenge for Rudd By COLIN BRINSDEN Kevin Rudd CANBERRA: The jump to an almost four-year high in the jobless rate highlights the challenges posed by the end of the mining boom, Prime Minister Kevin Rudd warned yesterday. Economists expect Australian Bureau of Statistics data released yesterday, showing an unemployment rate rise to 5.7 per cent from an upwardly revised 5.6 per cent in May, will add to the case for another interest rate cut as early as August. It was the highest jobless rate since September 2009, when the economy was feeling the impact of the global financial crisis. The data coincided with Mr Rudds first appearance at the National Press Club since being re-installed as the Labor leader. He announced a plan for a new productivity pact between business, unions and government aimed at smoothing the transition out of the resources boom. However, the rise in the un employment rate presents a challenge. It underlines the absolute paramount importance of prosecuting the new national competitiveness agenda, said Mr Rudd. The number of people in work rose by 10,300 in June, but not by enough to keep unemployment contained. The increase was largely due to a 14,400 increase in part-time jobs, offset by a fall in full-time work. Shadow treasurer Joe Hoc key said 200,000 people had lost jobs since Mr Rudd first came to power in 2007, and that there was nothing in his speech to address this. There was nothing there that was going to address the cost of living for everyday Australians . . . and there was nothing there to create more jobs for Australians, Mr Hockey said. While higher than expected, the June jobless rate is still just below the 5.75 per cent three-month average for the June quarter, forecast by the Federal Government in the May budget. But senior academic at the University of NSWs Australian School of Business, Nigel Stapledon, warned that leading indicators point to unemployment continuing to rise. It is likely to break over 6 per cent in the second half of the year, Dr Stapledon said in an analysis. Mining investment might still be high but it is now declining and causing a decline in construction activity, which is just starting to emerge in the employment numbers, he added. P U B : NTNE-WS-DA-TE:12-JGE:43 CO-LO-R: C-M Y-K ntnews.com.au l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l BUSINESS A worker climbs a ladder to enter the cab of a large ore moving truck at Newcrests Telfer gold mine Newcrest sharpens axe for workers MELBOURNE: Embattled Newcrest Mining has told workers at its Telfer gold mine in Western Australia some of them will lose their jobs in the next year. In the latest response to what has been a horror year, Australias largest gold miner said it was scaling back activity at Telfer. Newcrest wrote down the value of its assets by up to $6 billion last month as part of a cost-cutting restructure, amid a plunging gold price and high production costs estimated at $US1100 an ounce. But Newcrest shares soared yesterday, their best day since November 2008. Newcrest shares gained $1.15, or 11.6 per cent, to $11.10, helped along by US central bank comments that it would continue backing sustained economic stimulus, which is bad news for the US dollar and good for gold. Newcrests share price has suffered a huge fall in value this year, taking the market value of the company from above $17 billion on January 1 to below $8 billion in July. Newcrest cited the plunging gold price for Telfers job losses, with gold having fallen by about 25 per cent in 2013 to $US1288 an ounce. The exact number of redundancies is still being finalised, the company said. Telfer employs about 1800 fly-in, fly-out workers. Aust Post stamped to deliver $2b sell-off By JANE HARPER MELBOURNE: Australia will follow in the footsteps of the UK and privatise the mail service within five years, policy experts believe. The move would deliver a likely windfall of more than $2 billion to government cof fers and a privatised Australia Post would provide better customer service, industry watchers say. It comes as the UK government confirmed yesterday it would sell a majority stake in its postal service Royal Mail floating it on the London Stock Exchange by April. Under the plan, 10 per cent of the shares would be given to Royal Mail workers. Experts say it is a matter of time before Australia follows. Postal services are facing a complex set of pressures and its certain Australia Post is going to be a very different enterprise in five years time, University of Melbourne public policy fellow Nicholas Reece said. It will probably be privately owned. Mr Reece said overseas governments in economies similar to Australia had benefited from the sales of their postal services. Mum on Holden out for funding There comes a pointwhere you need to say enough is enough ADELAIDE: Car maker Holden says it is doing everything in its power to secure the future of its local operations. The company will not be drawn on reports it is seeking a big increase in government funding, though both sides of politics appear to be leaving the door open. Federal Industry Minister Kim Carr says negotiations are continuing but has described as extraordinary reports that Holden has asked for an additional $265 million on top of the $275 million pledged by the Federal and State governments last year. What I can say . . . is that the Labor Government remains absolutely committed to ensuring we have a prosperous automotive industry in Australia, he said. Opposition Leader Tony Abbott said a Coalition government would look at further generous assistance to Holden but it would need the company to cut production costs and boost exports. Mr Abbotts comments seemed somewhat at odds with shadow treasurer Joe Hockey who questioned the appropriateness of a further handout. There comes a point where you need to say enough is enough, Mr Hockey said. Holden said reports of it seeking extra assistance were just speculation. We are in close and constant discussions with both sides of politics at a state and federal level but are not in a position to publicly comment on the details of those discussions, a spokesman said. The company said its plan remained to introduce two new models at its Elizabeth facility from 2016 and it needed to meet several milestones to enable it to achieve that program. Holden is in the process of cutting 400 staff from its Adelaide plant and is negotiating a new labour agreement with workers, which could include pay cuts. Falling dollar delivers boost MELBOURNE: Arrium has revealed that a 1 fall in the dollars value is worth $10 million to $12 million in before-tax profit for its struggling steel business. Thats good news for the steel-making and mining group, which posted a near $450 million net loss for the first half of the financial year. The Australian dollar has fallen by about 14 since April. New boss of Arrium Andrew Roberts insisted yesterday that steel-making was an important part of the companys future, despite it being a major source of its heavy net losses in recent years.