Resources boom on the wane, says UGL chief

The resources boom has passed its peak, the chief executive of one of Australia’s biggest contractors says, pointing to the deferral of projects such as BHP Billiton’s Olympic Dam copper and gold mine expansion and Queensland’s Solar Dawn power plant, according to the Australian Financial Review.

“The top of the resources sector has passed us and the momentum is now slowing, not accelerating,” UGL chief executive Richard Leupen said.

The contractor’s shares slumped almost 11% after it warned it would deliver flat earnings in 2013 due to project delays.

“There was a series [of projects] that we were expecting to come through for next year that are now either delayed or deferred, and that comes out of our earnings,” Leupen said.

Plan to link carbon price permits to Europe

The federal government plans to link its carbon price scheme to Europe’s emissions trading scheme from 2015 while limiting Australian use of low-cost permits generated in developing countries, according to the AFR.

The change would bring the price of carbon emissions in Australia closer into line with that in Europe, where attempts are being made to bolster the sagging price of permits.

The move is part of plans being considered by the government to change the carbon price scheme to scrap the $15 floor price from 2015 and limit the amount of potentially low-quality permits generated under the United Nations clean development mechanism that can be used by companies.

State-owned power costs 'out of control'

Big electricity users have backed Julia Gillard's claim the state-owned power companies of NSW and Queensland are investing excessively in "poles and wires" compared with the privately owned Victorian network, according to The Australian.

Estimates by the Australian Energy Market Commission show that network costs were only expected to account for 15% of the increase in Victorian power prices between 2010-11 and 2013-14, compared with more than 40% in NSW and Queensland.