Chinese ports picking up traffic
In a sign that Chinese efforts to encourage consumer spending are being to show results, the Australian Financial Review reported that the Asian giant increased imports by 12.7% and exports by 15.3% in May.
The newspaper said the country’s overall trade surplus came in at a better than expected $US18.7 billion for the month but that weak industrial output numbers compared to a year earlier were less than most analysts expected.
Although China’s economy still grew at over 8% in the first quarter 2012, it was the country’s slowest growth rate in three years.
AFR cited UBS economist Tao Wang who said the government would continue to stimulate the economy.
“We think the government will continue to increase infrastructure and other public investment, ease credit constraints and to roll out additional measures to facilitate private sector investment in service, transport and utility areas,” UBS was quoted as saying in a note this week.
Newman warned on Gladstone Ports shakeup
Former chairman of Gladstone Ports Corporation Ian Brusasco has reportedly warned Queensland Premier Campbell Newman not to pursue a political purge of the body which oversees $60 billion of export infrastructure.
According to the Australian Financial Review Brusasco said the state’s new government showed a lack of respect when it removed him from the GPC which is overseeing the Wiggins Island coal terminal expansion.
Brusasco said he was concerned continued clearing out of the GPC board could jeopardise the group’s corporate knowledge and keep the state from maximising the benefits of the resource boom.
“It’s the most important piece of infrastructure the state government has. There’s $60 billion in investment going on there. It’s huge. And now you’ve just made all the people there very nervous,” he was quoted telling the Weekend Financial Review.
AFR said Brusasco denied claims of financial mismanagement at the port, which will help generate $3.5 to $5 billion for the state over the next five years.
Scrap royalties rebate: Bandt
Greens deputy leader Adam Bandt said his party would push for the scrapping of the royalty rebate in the Minerals Resource Rent Tax legislation.
Speaking on Channel Ten’ Meet the Press program yesterday, Bandt said the royalties section of the legislation was "ridiculous".
"We've got a false flaw in the mining tax at the moment, where essentially the states can increase their royalties and that reduces the amount of money that goes to the Commonwealth," he said.
"And that was part of the last-minute deal that was done to get it through, and it is an appalling part.
"It means there is a money-go-round where states and Commonwealth are haggling over increased royalties and then taking it off elsewhere.
"So the next time that we have an available opportunity, when any review legislation comes up, we will be moving amendments to fix that loophole so that if the states increase royalties, it won't affect what has to be paid under the mining tax.
"That will force a more sensible arrangement between the Commonwealth and states over it and secure the revenue for the Commonwealth."
