2008 US Presidential Election

Australia's Growth Rate now 4.3% per year

LATEST AUSTRALIAN BUSINESS NEWS

Australia has recorded its highest annual rate of economic growth in three years, with the latest national accounts showing Australia's gross domestic product grew 0.9 per cent in the June quarter.

In a brief article today, the ABC reports that although the 0.9% is down from the surge of 1.6 per cent in the March quarter, it is stronger than widely expected. It comes as unemployment is down to record lows of 4.2% and inflation is safely within the Reserve Bank's 2% - 3% band.

It has been enough to take annual economic growth to 4.3 per cent, a rate unsurpassed since June 2004.

Growth in the last three months has been driven by business and government investment spending.

Household consumption has grown moderately, the housing sector has contracted slightly and the drought is still weighing on the performance of agriculture.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Energy Market Reform

LATEST AUSTRALIAN BUSINESS NEWS

Energy market reform and the development of best practice market arrangements will play a key role in the global effort to address climate change according to Australia’s Federal Industry Minister.

Addressing the first steering committee meeting of the Energy Regulation and Market Development Forum, an initiative of the Asia Pacific Partnership on Clean Development and Climate (APP), Macfarlane said it was crucial that countries had access to clean and affordable energy sources which could power economic growth without adverse effects on the environment.

The Forum is a unique opportunity for the six APP partner countries to pool energy market expertise and improve the efficiency and environmental performance of energy generation, transmission, distribution and end use in their economies.

These improvements will make a major contribution to the global effort to address climate change because together, APP countries represent more than half of global economic activity.

The Forum of senior energy market policy makers, regulators, producers and distributors takes place over two days on the Gold Coast with delegates from each of the six APP countries – China, India, Korea, Japan, the US and Australia.

It is one of more than 100 collaborative projects in emerging clean technologies, capacity building and research that the APP has undertaken since it was established in January 2006.

Australia's reform of its domestic energy market in the past decade had delivered benefits, adding $1.5 billion a year to the economy.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Defence to Support NASA Dawn Space Project

LATEST AUSTRALIAN BUSINESS NEWS

A team of four personnel from the United States Air Force will visit Tennant Creek in the Northern Territory of Australia to monitor the launch of the National Aeronautical and Space Administration’s (NASA) Dawn spacecraft.

The US team will arrive at Alice Springs and travel to Tennant Creek where they will establish a small temporary ground station. Tennant Creek was selected as it affords the best view of the crucial booster separation phase of the launch.

As part of the same mission a United States Air Force NKC-135 aircraft will be operating out of Perth International Airport from mid September and flying over north-west Australia. The launch from Cape Canaveral is planned for between 19 September and 15 October depending on weather and atmospheric conditions. The Australian Defence Force will be providing local liaison support and assisting NASA with its organisational arrangements while the team is in Australia supporting the Dawn spacecraft launch.

This mission will attempt to answer questions about the formation of our Solar System. Data returned from the Dawn spacecraft could provide opportunities for significant breakthroughs in our knowledge of how the solar system formed.

Over the last decade Defence has supported five similar NASA missions as part of Australia’s ongoing cooperation with NASA.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Small Business R & D Spending Increases

LATEST AUSTRALIAN BUSINESS NEWS

Research and development by Australian small businesses has risen by 17 per cent to reach $1.3 billion, according to the Australian Bureau of Statistics (ABS).

The ABS reports R&D expenditure in small businesses reached $1,316 million in 2005-06, a solid improvement on the 2004-05 figures of $1,130 million.

Importantly R&D expenditure by micro-businesses (less than five employees) increased by 18 per cent to reach $354 million. Small business is spending more on R&D, developing new goods and opening up new markets.

In a global economy, small business has to be innovative to compete. The good news is Australian small business is taking on the best in the world and winning.

Australian R&D Tax Concessions offer:

• a tax deduction of up to 125 per cent of expenditure incurred on R&D activities;

• an R&D Incremental (175 per cent Premium) Tax Concession for certain companies that increase their grouped R&D expenditure; and

• an R&D Tax Offset for companies with group turnover under $5 million and a group R&D expenditure of up to $1 million for the year.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

US Bank Moves Into Australia

LATEST AUSTRALIAN BUSINESS NEWS

US investment bank Lazard has followed in the footsteps of the Lehman Brothers purchasing an established Australian investment bank in order to gain greater access to the Asia-Pacific region.

Lazard has purchased Carnegie Wylie for an undisclosed combination of cash and stock with the acquisition being effective immediately.

Lazard President, Mr Charles G. Ward III, said that the acquisition of Carnegie Wylie was another important step in the bank’s five-year strategy to expand its financial advisory business by geographies, and reinforce its commitment to provide premium service to clients.

The acquisition will allow Lazard to bring Australia’s top banking talent into the Lazard fold, to build on its existing Australian business faster, inherit an established presence and premier brand in Melbourne, Sydney and Brisbane, and strengthen its access in the important Asia Pacific region.

Lazard's existing Sydney-based financial advisory team will join Carnegie Wylie. The combined group will be lead by co-founder and principal of Carnegie Wylie, Mr John Wylie.

Carnegie Wylie co-founder and principal, Mr Mark Carnegie has been appointed CEO of Lazard’s Australian private equity business and Lazard's Australian asset management business will be managed separately.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

$ 51 BILLION DEFENCE CAPABILITY PLAN FOR 2006-2016

LATEST AUSTRALIAN BUSINESS NEWS

The Australian government has today released its the public version of the Defence Capability Plan (DCP) 2006-16. It outlines more than $51 billion of major capital equipment proposals which are planned to be evaluated by Government over the next decade. This DCP provides many opportunities for US based businesses seeking entry into the Australian defence procurement program. The proposals it contains are essential to deliver the capability required by the Australian Defence Force (ADF) to maintain Australia’s security.

The recent 2006/2007 Federal Budget announced investment of an additional $2.4 billion over financial years 2011-12 to 2015-16. This continues the additional 3 per cent funding over 10 years announced by the Government in the 2000 Defence White Paper. The additional funding by Government enables the DCP 2006-16 to address the rise in the price of military platforms and technology. Providing a public version of the Defence Capability Plan to Australian industry is a key part of ensuring that the ADF will continue to have the major equipment and systems it needs to do its job.

The DCP 2006-16 is a major document produced periodically from an ongoing review of defence capability requirements. Australia’s National Security – A Defence Update 2005 fed into this review process and largely influenced the DCP 2006–16. This DCP brings Australia’s equipment acquisition and capability development strategy over the next decade into line with its increasingly complex security situation. The DCP will deliver the capabilities required by the ADF to maintain Australia’s security and strengthen its ability to promote national interests. The DCP is based on advising capability effects and outcomes rather than platform replacement. This change from being solution focused to outcome focused is associated with improved capability development processes under the successful Kinnaird reforms. This DCP retains a degree of planning flexibility to manage the risk of unforeseeable and uncontrollable events occurring through changes in the strategic environment, technological development and the ability of defence industry to meet global demand.

Some of the major features of this public version of the DCP are:

* Modifying helicopter plans to reduce the number of aircraft types and to create a common joint training and management system. More than $3.7 billion of project funding has been set aside to achieve this aim.

* The addition of more than $500 million of new naval surface capability projects to enhance the ANZAC class air search radar system and to develop undersea warfare detection capabilities, and sea mine counter-measures in 2017 to 2019.

* A 40 per cent boost in funding for Army networking projects as part of the Hardened and Networked Army initiative. The networking enhancements will support Network Centric Warfare capability and are to be introduced across the majority of Army units. Better understanding of the requirements of the Land 17 phase 1 project means that Army’s 105mm and 155mm artillery replacement will be safely deferred for three years whilst Army’s Ground Based Air Defence capability will be enhanced from around 2018 to 2020 in a new project valued at more than $750 million .

* Continuing the projects to support Australia’s air combat capability - including a $350 to $450 million mid-life upgrade of the Hawk lead-in fighter in 2017 to 2019 and future upgrades for the Wedgetail Airborne Early Warning and Control aircraft. Prudent planning sees additional provision made for the F/A-18 Hornet structural refurbishment to ensure sufficient aircraft maintain operational capability in the transition to the New Air Combat Capability.

* Building on the Government’s recent decision to acquire a heavy airlift capability, the DCP retains around $1 billion to refurbish or replace the C-130H Hercules and Caribou aircraft fleets. More detailed analysis of the lifespan of the Orion AP-3C means that the decision to refurbish or replace the ADF’s maritime patrol aircraft can be deferred for 2 years. This DCP also sees increased funding of more than $250 million for the Multi-Mission UAV project – AIR 7000 Phase 1B.

* Greater funding for the ADF’s military satellite communications capability with more than $1 billion to be invested in next generation satellite and ground station infrastructure to ensure continuity of service and flexibility through digital content.

* Continued improvements to Defence’s core enterprise systems including a new improved logistics management system project valued at more than $350 million and operational in 2012 to 2014.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

International Merchandise Imports to Australia - May 2006

LATEST AUSTRALIAN BUSINESS NEWS

The following table, released today by the Australian Bureau of Statistics (ABS) shows the various international merchandise imports brought into Australia during May 2006. All values are in $A.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australia To Purchase MRH 90 Helicopters

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Government has approved a $ 2 billion acquisition of thirty-four MRH 90 helicopters to replace Navy’s Sea King and Army’s Black Hawk helicopters. The selection of the MRH 90 complements the Government’s decision in 2004 to acquire an initial twelve MRH 90 helicopters as Army’s additional troop lift helicopter. Delivery of the first twelve is scheduled from December 2007 through to December 2009.

The new twin-engine troop lift helicopters will provide opportunities for joint fleet management. These benefits include greater operational flexibility and efficiency through common operational, training and logistic systems and a capability to rotate personnel, aircraft, spare parts and role-specific equipment between troop lift, special operations and maritime support commitments.

The 34 additional MRH 90s will be assembled in Brisbane. As these MRH 90 aircraft will be assembled in Australia this acquisition of at least 34 aircraft will provide significant opportunities for Australian industry and the Australian Defence Force (ADF) will gain an operating capability within a relatively short time-frame.

The emphasis of the Australian industry package, worth $1.2 billion, is on the development and sustainment of critical aircraft mission system capability. The long term viability of the Australian MRH 90 assembly line will be maximized, ensuring greater development of the skill base required to support the MRH 90 into the future through a strategy aimed at promoting Australian industry as part of the Eurocopter global supply chain.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

OECD Report on Australia

LATEST AUSTRALIAN BUSINESS NEWS

The following summary of Australia’s standing in the world economy – as assessed by the OECD - was printed in the “Sydney Morning Herald “ of 29 March 2006. The “Sydney Morning Herald” can be read on line at www.smh.com.au .The OECD report states that Australia has the world's 12th largest economy, and the 11th highest gross domestic product per capita in the world. During the past 12 years, the OECD estimates, the Australian economy was the eighth fastest growing economy in the world - behind only China, Ireland, India, South Korea, Poland and the Slovak Republic. Australia is mid-range when it comes to the average number of hours worked a year - 1816. Australian working hours increased in 2004 for the first time since 1998.

The hardest working workers in the developed world are the South Koreans, who averaged 2423 hours a year. The best rested are those in the Netherlands, who average 1357 hours a year.

The figures show the Australian economy does have some weakness. Its household savings rate, the proportion of income put away for a rainy day, was the only country among 15 rich nations that was in negative territory.

Australia is only one of six countries to have both a trade deficit on both physical goods and merchandise and on services.

Other countries with double deficits include Mexico, India, Italy, South Africa and Hungary.

Since the Howard Government came to office, the OECD estimates, Australia has experienced one of the lowest rates of export growth of all member countries. It is also at the bottom end of of the list of countries with exports of high- and medium-technology goods.

Australia was the fifth most generous nation, behind the US, Japan, Germany and France, with total aid commitments so far of $US200 million ($280 million).

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Growth Rate Steady at 3%

LATEST AUSTRALIAN BUSINESS NEWS

With official interest rates in Australia remaining at 5.5% for the foreseeable future, forecasters at the Reserve Bank of Australia (RBA) are now expecting the annual growth rate of the economy to be around 3%. This is considered by most commentators to be below par and therefore the most likely move in interest rates – will next be downwards.

The local jobs market is tightening with a drop off in job advertisements over the past 3 months. But interestingly, despite the fall in advertisements generally, there has been an increase in job ads placed on the internet. The increase in advertisements in January was 6% - well above expectations with total ads year to date being 30% higher than over the corresponding period 12 months ago.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Export and Domestic Retail Sales Both Rise

LATEST AUSTRALIAN BUSINESS NEWS

Both Australia'’s export trade as well as domestic trade have recorded growth over the December period.

The value of Australia'’s exports for the month grew 7% while imports only increased by 1%.

Domestic retail sales grew just 0.4% over the same month, which equated to total retail sales of $22.5 billion for December 2005.

Both sets of figures support the prospect for continuing economic growth during 2006, with inflation kept in check and interest rates remaining stable.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Inflation Well Within Target Range

LATEST AUSTRALIAN BUSINESS NEWS

Australia’s cost of living – as indicated through the Consumer Price Index (CPI) – has risen slightly over the 3 months ending 31 December 2005. The CPI rise was just 0.5%. This very slight increase has placed the annualised inflation rate at 2.8% for calendar year 2005. The low CPI increase is the smallest recorded for one 3 month period since 2004. The current inflation rate sits comfortably within the desired range set by the Reserve Bank of Australia, indicating that there is unlikely to any move in official interest rates in the short to medium term.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Wine Production Exceeding Demand

LATEST AUSTRALIAN BUSINESS NEWS

The record year of 2003-04 for the Australian wine and grape industry was surpassed in 2004-05 with increases in harvest, crush and wine production levels. There were 1,925,490 tonnes of grapes crushed in 2004-05, an increase of 8,252 tonnes on the record crop of the previous year. Beverage wine production was a record 1,422.8 million litres, an increase of 1.3% on 2003-04. There was continued growth in the export of Australian produced wine, which reached 669.7 million litres during 2004-05, an increase of 14.6%. The value of these exports increased 8.9%, to $2.7b. Domestic sales of Australian wine also continued to grow, up 3.1%, to 430.1 million litres.

Estimates from the Vineyards 2005 collection show that season 2005 produced another record harvest. The industry appears to have fully recovered from the drought conditions experienced in 2003. Hectares of vines being cultivated increased again, from the record area last year of 164,181 hectares, to 166,665 hectares in 2005. The total area of vines bearing grapes increased from 150,561 hectares to 153,204 hectares, a rise of 1.8%. The area of non-bearing grapes decreased slightly in 2005, down 1.2% to 13,462 hectares.

The net increase in area planted under vines for 2004-05 (derived from vines planted and vines lost during the year) was 1,823 hectares, which was 10.0% less than the net increase recorded in 2003-04 (2,025 hectares).

The wine industry has recorded a second bumper year in a row, with harvest, crush and wine production levels rising above 2003-04 levels.

Figures released by the Australian Bureau of Statistics last Wednesday (January 25th) showed 1,925,490 tonnes of grapes were crushed in 2004-05 - up 8,252 tonnes on the record crop of the previous year.

Beverage wine production was a record 1,422.8 million litres, an increase of 1.3 per cent on 2003-04.

Australian producers exported 669.7 million litres over the year - an increase of 14.6 per cent, with the value of wine exports rising 8.9 per cent to $2.7 billion.

Domestic sales of Australian wine were also strong, rising 3.1 per cent over the year, to 430.1 million litres.

Importers brought in 22.1 million litres valued at $188.2 million - up 23.5 per cent from 2003-04.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Bank Buying Indiana Toll Road

LATEST AUSTRALIAN BUSINESS NEWS

The continuing expansion of Australia’s Macquarie Bank into infrastructure projects around the world continues. Macquarie, along with its Spanish partner Cintra have now been named as the preferred bidder for a further US toll road. After having purchased, in partnership, the Chicago Skyway, the bank now seems set to hold a 50% stake in the Indiana Toll Road.

Press reports indicate that the consortium has offered $US3.85billion for a 75 year concession over the toll road.

The Governor of Indiana has expressed surprise at the size of the bid. This comes as other US state legislatures debate the cost benefit to their constituents of selling off state owned assets, especially the concern that government control over tolls will be removed and that “monopoly” roads used widely by the community, will be subjected to substantial annual toll increases.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

First Phase of $3Billion Defence Tender Released

LATEST AUSTRALIAN BUSINESS NEWS

The first major phase of a $3 billion investment in the Australian Army's fleet of field vehicles has been released. The three separate Requests for Tender (RFT) have been released on 13 December to replace a vital fleet of Army trucks, four-wheel drives, trailers and modules for the Australian Army's high readiness units. The investment is part of Project Overlander - the largest land project in the Defence Capability Plan worth a total of $3 billion.

This current phase is worth up to $600 million and includes replacing the existing high readiness fleet of about 1400 heavy and light vehicles, 1300 trailers and 1200 specialist modules. The next phase will replace the rest of the Australian Army's vehicles, trailers and modules across Australia.

Project Overlander is a key part of the Government's Hardening and Networking strategy that will be released in detail later this month. Favourable consideration will be given to those companies who will assemble the vehicles in Australia. The request for tender for the trailer segment will be restricted to Australian-based manufacturers, plus those vehicle suppliers capable of supplying a proprietary trailer. The request for tender is tailored to encourage the production of trailers in Australia.

The RFT for all three fleet segments will close in May 2006 with detailed proposals presented to Government in 2007. The target date for delivery of the first of the vehicles is December 2009. Each RFT will also require offers to be made on support of the fleet, and will seek an agreement to guarantee the whole of life acquisition and logistic support of the new fleet, potentially for the next 30 years.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Simple & Safe Medical Development

LATEST AUSTRALIAN BUSINESS NEWS

A world-class medical device, developed by the Brisbane, Australia based company Qlicksmart Pty Ltd, that makes scalpel blades a lot more safer was launched this week. The device, called the Sterile Blade Remover, enables the safe removal, containment and disposal of used scalpel blades from their handles - avoiding the risk and cost of injury and infection to hospital staff. The Qlicksmart innovation is an example of an Australian company thinking outside the box to deliver a medical device which has the potential to change safety practices in medical sectors worldwide. Qlicksmart has taken a good idea and pushed it through the design, development and manufacture stages to start distribution world-wide.

The medical devices sector is worth about $824 million in exports to Australia annually and employs more than 5500 people. This type of product realisation is a vital investment in the industry’s future. Established in Brisbane in 1994 Qlicksmart Pty Ltd is a small, cutting-edge medical device company which sells products in more than 43 countries.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Share Market Correction Makes Impact

LATEST AUSTRALIAN BUSINESS NEWS

The Australian share market has suffered two days of decline, giving the market its largest fall since investors reacted to the impact of 9/11. After about 7 months of good, strong growth this year, the market has responded to what commentators are calling a “correction” – not a “crash”. Since March 2003 the Australian market has risen 60% with an 8% increase just in the last quarter.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Defence Industry Capability

LATEST AUSTRALIAN BUSINESS NEWS

About 20 Australian companies are joining forces in London this week to promote Australian Defence industry capabilities at the largest tri-service defence exhibition in the world - the Defence Systems & Equipment International exhibition held in London's docklands area. A 'Team Australia' stand at the exhibition has been established to ensure as many companies as possible could be represented at this important defence exhibition, including many small companies that would otherwise not be able to be there.

The exhibition focuses on Defence, Emergency Services and Homeland Security sectors of industry and will showcase eight warships alongside. It is the most significant trade show of its type in the world and provides great networking and business opportunities on a very large scale. Australian industry will benefit from being involved through increased exposure of Australia’s niche capabilities to major international defence and security firms, as well as other potential customers,. The 'Team Australia' stand aims to increase other countries' knowledge of the depth and extent of Australian industry capabilities and demonstrate Australian Government support to the Defence industry.

Australian defence industry, whilst small, has niche capabilities that are equal to or leading the world. However, most of the major defence and security firms are based in the Northern Hemisphere. Whilst Australia has overcome many of the issues related to distance for European companies doing business with Australia, this is another opportunity for Australian companies to demonstrate that distance and time zones are no obstacles.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Energy from the Sea

LATEST AUSTRALIAN BUSINESS NEWS

An innovative Australian company, Energetech, which is developing world-leading technology to generate power from wave energy, completed the first successful installation of one of their turbine units off the east coast of Australia, just south of Sydney at Port Kembla. A single unit has the potential to power 2,000 homes without producing greenhouse emissions. The company is currently working on a project for Rhode Island in the USA, and is also fielding interest from consumers in Spain, Mexico, Chile and Canada.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Uranium Sales Increase

LATEST AUSTRALIAN BUSINESS NEWS

Australia’s uranium export earnings jumped 30 per cent over the last financial year, increasing from $364 million to $475 million in 2004-05, according to the Australian Bureau of Agriculture and Resource Economics (ABARE) Mineral Statistics Report released on 7 September. Australian Industry Minister, Ian Macfarlane, said the growing global thirst for uranium was reflected in the ABARE figures which have not before recorded such a jump in demand for the commodity. Coking and steaming coal continue to top Australia’s resource export charts, with export earnings leaping ahead 65 per cent and 45 per cent respectively, but uranium is coming through as a potentially strong performer for Australia.

There are approximately 450 nuclear plants in 32 countries and the price of U308 (uranium oxide) has almost doubled in just the last 18 months. In January 2004 it was A$20 a pound compared with A$39 in August 2005.

The local industry is responding to this increasing global demand with reports from the Minerals Council that as many as 25 mining companies are now exploring for uranium in Australia’s Northern Territory. The ABARE report reported a record of $67.4 billion in mineral export earnings for 2004-05, an increase of nearly $15 billion or 29 per cent from the previous year

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Services Sector Shows Continuing Growth

LATEST AUSTRALIAN BUSINESS NEWS

The Australian service industry sector, including retail, has shown continuing growth over the last recording period.

An index of Australian service industry performance rose to a six month high in July due to an increase in business at hotels, restaurants and retail outlets. The Australian Industry Group – a major employer association – has issued its latest data based on industry orders, sales, deliveries and inventory levels. The latest index shows that there has been a 2.6% in these base measures for the month June to July 2005. The Group has said that from the index it can ascertain that there is a continuing expansion of service industry activity.

Retail trade in particular has shown an increase of 1.3%, in the face of what was expected to have been a slow period, due to relatively mild winter weather and some apparent levelling off of overall consumer spending. The overall level of Australian retail spending was $17.2billion for the month of June.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Be Aware of Australia's Tough Quarantine Laws

LATEST AUSTRALIAN BUSINESS NEWS

An international student and a first-time traveller have both learned an expensive lesson: — trying to break Australia’s tough quarantine rules doesn’t pay. The two cases, heard in Brisbane, resulted in fines totalling more than $14,000 for Quarantine and Customs breaches at Brisbane International Airport. The travellers also now have criminal records. In the first case, a university student who has been studying in Australia for three years tried to smuggle 1.5 kilograms of sausages from China after a trip home to visit his family. Quarantine officers discovered the sausages in his suitcase during X-ray inspection. Sausages could carry animal diseases such as foot and mouth into Australia — and could potentially devastate Australian native animals and its agriculture and export industries.

It’s been estimated that an outbreak of foot and mouth disease would cost $450 million in control measures, and would cause a $13 billion loss to Australia’s export earnings.

The second passenger, a 52-year-old woman visiting relatives in Australia, brought in a range of goods, also from China. Quarantine officers found the items including a live bamboo plant, apples and chicken meat, when her bags went through X-ray inspection. The goods could have brought with them insect pests, a range of plant diseases and bird flu, putting at risk Australia’s $30 billion-a-year agriculture export industries as well as its wildlife and environment.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Consumers Regain Confidence

LATEST AUSTRALIAN BUSINESS NEWS

Consumer confidence has come back strongly in Australia with a 7.6% rise recorded in August. This follows on from a slight dip in confidence reported in July – according to the Westpac Bank/Melbourne Institute’s latest Index of Consumer Sentiment. There had been concern about the possibility of the Reserve Bank of Australia (RBA) increasing interest rates, but over the past months that risk has been diminished. It is only last week that the Governor of the RBA stated that a rise in rates over the remainder of 2005 was unlikely.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

For sale - Two Major Government Entities

LATEST AUSTRALIAN BUSINESS NEWS

Telecommunications. The Australian Government is to move to the next stage of preparing for a sale of its majority holding in Telstra – Australia’s leading (formerly monopoly holding) - telecommunications company. The Government’s holding is worth around $30billion and should be of interest to major international telecommunications companies and related entities. The advice from the Telstra Scoping Study was that an appropriate return could be achieved, but that it would be dependent on a number of future variables, including:-

• overall market conditions,
• expected demand for Telstra shares,
• Telstra’s performance,
• the outcomes of the new CEO’s operational review, and
• the implementation of regulatory changes.

Medical Insurance. The Australian Government has decided to review its ownership of Medibank Private Limited – a major private health insurance company - and will update a scoping study into the possible sale of the company. As with the previous scoping study completed in 2003, the update will examine the operation and structure of Medibank Private, analyse the industry and policy environment in which it operates, and consider options for the Commonwealth's future ownership of the company. The updated scoping study will also examine issues such as the nature of its corporate structure and the effect of a potential sale on consumers, members and employees of Medibank and other stakeholders. It is expected that the scoping study update will be completed by the end of this year.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

More Business Opportunities - Automated Defence Vehicles

LATEST AUSTRALIAN BUSINESS NEWS

Australia's future military operations will be supported by forces of robots and unmanned vehicles which will be highly integrated and controlled by defence personnel from a distance, Defence Minister Robert Hill said today. Speaking at the opening of the Amazing World of Science event in Canberra today, Senator Hill said the Government was investing more and more on research and development of unmanned vehicle technology for use in future operations and for surveillance purposes.

"These new intelligent and largely autonomous systems will in the future be able to carry out hazardous tasks traditionally reserved for warfighters which will reduce exposure and risks to Australian Defence Force personnel," Senator Hill said. "This will be a huge leap in capability for our Defence Force. I envisage that in the future unmanned battlespace vehicles will be deployed in fleets to gather information, conduct surveillance, sweep for mines, defuse bombs and carry out a range of dangerous tasks. "The autonomous systems will be able to provide the ADF with increased access to its areas of operation, especially in hostile and difficult terrain.

"This advance in technology has the potential to increase the operational effectiveness of our troops and enhance surveillance capabilities while reducing risk to personnel and reducing the cost of operations." Research into such autonomous vehicles is being undertaken by the Defence Science and Technology Organisation (DSTO) under its Automation of the Battlespace Initiative (ABSI). "This is a long range research program to enhance the ADF's capabilities by dramatically increasing the autonomy, performance and affordability of these unmanned vehicles," Senator Hill said. "Trials so far have demonstrated that these autonomous vehicles can work together in cooperative way to complete assigned tasks. "DSTO is exploring the concept of expendable autonomous vehicles which will be inexpensive to manufacture and easy to repair." In time these vehicles will carry integrated communications and other capabilities linking them together and with their controllers. Senator Hill said advances in computing power, electronics, sensors, miniaturisation and smarter software has made it possible to raise automation to a new level.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

US Company Wins Australian Defence Contract

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Federal Government has chosen the US company Gibbs & Cox as the preferred designer for the Australian Navy's Air Warfare Destroyers (AWDs) - one of Australia's largest and most complex Defence projects worth up to $6 billion. Gibbs & Cox now joins a team made up of ASC Shipbuilder Pty Ltd, who has been selected to build the AWDs, and Raytheon Australia, selected as the Combat System-System Engineer. Gibbs & Cox, a United States based company, was chosen through a competitive tender evaluation process that also included German company Blohm + Voss and Spanish company Navantia. The selection of Gibbs and Cox as platform designer now completes the team whose responsibility it is to deliver the project. The Government made the decision after accepting the recommendation of the Source Selection Board on the basis that Gibbs & Cox offered a superior bid in terms of value for money. All three companies presented competitive bids and showed themselves to be very competent naval ship designers. Bids were evaluated against a wide range of criteria.

The Gibbs & Cox evolved design will now compete with an Australianised version of Spain's existing F100 ship design, and will be further considered by the Government as part of the next phase of the project. The construction of the Air Warfare Destroyers will be one of the most significant shipbuilding projects undertaken in Australia to date, and will provide enormous opportunities for Australian industry and its partners. The Government has provided $455 million towards the current phase of the project which includes further design work, workforce skilling, initial infrastructure investment and facilities construction. The ship will be interoperable with the United States and other Coalition partners.

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David

david.taylor@agarcarlyon.com