Review hears calls for GM-free seed exports

Report: Cameron Wilson
A state parliamentary inquiry has heard that Tasmania could export canola seed to the world if the state's GM ban is maintained.A review is underway this week to determine if Tasmania should extend it's ban on GM crops beyond 2008.Alex Schaap from the Department of Primary Industries told the parliamentary inquiry there could be benefits from keeping the ban."One of the opportunities for Tasmania, that I hope the industry will explore, is the opportunity to actually develop a GM-free canola seed industry here, where we bulk up seed in a place that's much, much safer from GM contamination than anywhere else in the rest of the world."But canola grower from Conara Ian McKinnon, who has been a vocal supporter of GMO technology, does not agree."Well I think it would be a very small industry, and I think what Alex is missing is the point that Tasmania can participate in organic seed production , conventional seed production and GMO seed production. There's no need to lock ourselves away from all the opportunities."
In this report: Alex Schaap, general manager of DIP Biosecurity and Product Integrity Division; Ian McKinnon, canola grower

China blocks Rio Tinto, BHP Billiton imports

By Andrew Trounson

MINING giant BHP Billiton has joined Rio Tinto in talking tough on seeking higher iron ore prices as China seeks to put pressure on the Australians to cave in by delaying some high-priced Australian spot sales into the country.
In a move reminiscent of previous iron ore talks, when the Chinese Government sometimes used heavy-handed tactics to pressure the miners, traders in China said Beijing had delayed issuing import permits for March, stranding at least three unloaded cargoes at Xingang port in Tianjin. The Chinese move might be a reaction to Rio's decision in January to start exercising contract clauses that enable it to divert up to 10 per cent of contracted volumes on to the spot market. But with iron ore in short supply and spot prices soaring, analysts doubt that the Chinese steel mills can afford to turn away Australian spot cargoes, and BHP chief commercial officer Alberto Calderon believes it will be only a temporary delay. "You may have a temporary thing now and then, but the market works pretty well," Mr Calderon said yesterday. But the Chinese move highlights the deterioration in relations between the Chinese and the Australians, who have dismissed as too low a massive 65-71 per cent increase in annual contract prices agreed to by Brazilian giant Vale. Most Australian ore is sold under long-term contracts, but with spot prices of nearly $US200 a tonnes compared with a new landed contract price of about $US120 a tonne, the Australian miners are moving to sell more ore on the spot market. Both Rio and BHP are also pushing aggressively for an added freight premium to recognise the cheaper cost of landed iron ore from Australia relative to more distant Brazil. Mr Calderon said the freight difference was worth as much as $US8 billion in additional annual revenue for the Australian iron ore miners. That would please the Government, which would gain additional royalties and tax revenue, but not the Chinese who have to pay for it. The Chinese steel mills are already worried at the prospect of BHP taking over Rio and increasing its market clout, but that clout is now already effectively being wielded. "We will be looking to get the highest price possible on this, and it has to be higher than what Vale got," Mr Calderon said, echoing Rio's stance. He indicated that the prospects of winning a freight premium had been improved now that both miners were arguing for it. In 2005, Rio did not support BHP's failed push for a freight premium. "We believe that we will get something now that Rio is on the same side," he said. But Rio and BHP are far from united as Rio seeks to fend off BHP's hostile takeover bid. And in what seemed a move to pacify BHP's Chinese customer base and reassure Beijing over its intentions, Mr Calderon criticised Rio's tough stance on diverting contract ore into spot markets as breaking the "spirit" of the contracts. He said BHP would fulfil 100 per cent of its contracted deliveries, although in the future BHP planned to move more ore on to spot and index-based pricing. The price talks appear destined to spill over into the new contract year starting on April 1. But while any deal will be backdated, there is industry speculation that unless a deal is done by the end of June, Rio and BHP might be able to void some contacts and divert all that ore on to the spot market. "If that is true, then it is a very big stick the Australian producers have," Citigroup analyst Alan Heap told The Australian. During price negotiations in 2006, China at one stage tried to cap prices by barring imports of any ore priced above the previous contract price.

Save your leatherwood

Bob Davey SaveYourLeatherwood Honey Association

Of the three coupes in the Wedge ( Lake Gordon area), previously reported as being currently harvested, two containing scattered Leatherwood have been clearfelled. This is in spite of a request from the Southern Beekeepers that the coupe boundaries and harvesting method be reviewed to help retain the Leatherwood.

REPORT FOR THE TWO MONTHS OF JANUARY AND FEBRUARY 2008
THE CHRISTMAS period saw us substantially in recess, except for receiving reports of coupes being assessed or otherwise prepared for harvesting.

Of the three coupes in the Wedge ( Lake Gordon area), previously reported as being currently harvested, two containing scattered Leatherwood have been clearfelled. This is in spite of a request from the Southern Beekeepers that the coupe boundaries and harvesting method be reviewed to help retain the Leatherwood.

The third coupe WE039F, containing valuable Leatherwood resource in a valley towards the end of Clearhill Road, has yet to be harvested. Forestry Tasmania has offered an onsite inspection to audit the Leatherwood content, and with the beekeeper involved, John Duncombe, discuss how the Leatherwood can be preserved. This is notwithstanding the resource being scattered throughout the coupe. The coupe is estimated to support at least 25 hives and perhaps more. An inspection by John and Duncombe and Bob Davey with a Forestry Tasmania representative/planner, is expected to occur early in March. This concession by Forestry Tasmania is pleasing given the previous advice given to John Duncombe and Bob Davey by the planner that the Veneer Wood content was required too urgently to permit the retention of Leatherwood.

Another coupe recently inspected by Paul Wigger and Bob Davey, into which a new road is being constructed, is TN044B. There is Leatherwood all around the base of a hill which makes up most of the coupe. We will inspect the Forest Harvesting Plan early in March to establish Forestry Tasmania`s intentions as regards the Leatherwood content. Every opportunity will then be taken to negotiate the best outcome from a beekeeping resource perspective.
We will report further on the result of the above discussions with Forestry Tasmania, at the end of March.

We continue to be heavily reliant on the advice of beekeepers and other forest users in monitoring when coUpes are being prepared for harvesting. This is critical where a coupe is scheduled for imminent clearfell harvesting by cable method.
Unfortunately the protocol said to be in place where a coupe is found to contain Leatherwood, continues to operate properly only where there is either not an urgent timber resource requirement or where the Leatherwood is in a conveniently concentrated formation and is easily retained without seriously compromising the timber requirement. This makes the ongoing physical coupe by coupe auditing, the only sure way of maximising the retention of the leatherwood resource. Thanks to all our members and other supporters for continued help and advice and more importantly, information about what is occurring in the State Forest.
BOB DAVEY (President ).

Call for rail timetable to be released

The Tasmanian Opposition has accused the State Government of dragging its feet in securing road and rail funding promised by the Federal Government.
The Prime Minister Kevin Rudd announced a road and rail package worth $440-million during the election campaign.
The Opposition's Infrastructure spokesman, Peter Gutwein, says he has been told one of Pacific National's trains derailed on the Midlands line on Sunday.
"I think the new Infrastructure Minister, rather than crowing about having a super portfolio in Parliament as he was last week should begin doing his job," he said.
"Find out when the money's going to arrive and ensure that Tasmania's road and rail infrastructure receives the necessary funding um that it requires."
He says Tasmania's rail network is deteriorating and this latest incident should be a wake-up call for the Government.
"I think it's long overdue for the Tasmanian Government to not only begin discussions with their federal counterparts but to be to be rolling out a timetable in regards to when we're going to see this rail funding appear and the work to be done that's so desperately needed," he said.
The state's rail operator, Pacific National, could not be reached for comment.

GM foods 'probably safer' than others: scientist

One for you "Just a consumer"
Posted 1 hour 2 minutes ago
A CSIRO scientist has told a Tasmanian parliamentary inquiry that genetically-modified (GM) foods are probably safer than conventionally-grown foods.
Tasmania has a ban on GM foodstuffs.
The CSIRO's Tom Higgins has told the joint select committee investigating gene technology that genetically-modified material is rigorously tested.
"I think it probably is true to say that that, that they are probably safer than conventional foods, just because they undergo so much more regulatory scrutiny," he said.
But Dr Higgins also told the inquiry he abandoned an experiment using genetically modified material after mice were adversely affected.
Dr Higgins said he had tried to make peas resistant to weevils by transferring genetic material into them from beans, but when tested on mice the peas provoked an allergic response.
He says the response was only mild, and was not why he abandoned his research.
"Well, just because of the sensitivities, of people to, to this technology, it seemed to me that it would not be wise to carry on with the project, that had that associated with it.
"I think it was very important to be able to publish those results and say, well, this can happen."

Millions in China to see Tasmania on TV

More than two million Chinese are being urged to travel to Tasmania to experience one of the world’s Last Paradises.
The Minister for Economic Development and Tourism said the series of five half-hour travel programs on Tasmania began in late February on TVB, the most influential television station in Hong Kong.
“Tasmania was one of only two international destinations chosen by TVB to launch its first high-definition travelogue - the nature-based Last Paradise series,” Ms Wriedt said.
“The only other international destination was the Seychelles Island.
“This is such an incredible opportunity for Tasmania because not only does TVB have an immediate household audience of 2.1 million people, but its cable network in China reaches 60 million households worldwide,” Ms Wriedt said.
The program stars celebrity Eason Chan – an acclaimed singer and actor on the threshold of major stardom.
“He was so impressed with Tasmania that he also included shots taken here in his latest music video.”
Ms Wriedt said Tourism Tasmania supported TVB’s visit through its Visiting Journalist Program.
The crew travelled the State in November 2007 to work on filming Last Paradise.
“The program also includes a competition to win a holiday in Tasmania, and contains a range of holiday packages.
“The Last Paradise series adds enormous value to the many promotional activities Tourism Tasmania undertakes in the south-east Asian market, including recent Tasmanian articles in Singapore’s Business Times, Today Newspaper and the Straits Times, Action Asia, Elle Magazine and the Brunei Times,” Ms Wriedt said.
It also comes hot on the heels of a recent visit to Tasmania by five of Hong Kong’s leading executive chefs, who toured the State and sampled our superb natural produce.
“Hong Kong is Tasmania’s second largest export destination, worth $487 million a year. However it currently provides only a few thousand visitors to the State each year,” Ms Wriedt said.
“Programs like these can only help encourage more visitors from this market.
“It’s an expensive market to advertise in, so the smarter Tasmania can be in promoting itself, the further its collective marketing dollar goes,” Ms Wriedt said.

Poppy proliferation

Tasmanian poppy growers are likely to be a lot busier over the next few years, as one of the state's three main poppy processors prepares to heavily increase its workload.
The poppy processor Tasmanian Alkaloids plans to spend more than $60-million on equipment over the next five years to double its output.
The Northern Midlands based company produces thebaine, which is used in analgesics.
The general manager of Tasmanian Alkaloids, Tol Sereda, says the aim of the big spend is to increase their business overseas.
"Australia, in itself, because of the small population base typically only uses a small quantity of of analgesics so most of our market will be in Europe and the United States, which is very dominant," he said.
Mr Sereda says securing more business from the United States and Europe and the move will benefit poppy growers statewide.
"Well the north west coast is the premium growing area, but we do grow throughout Tasmania so it's a matter of expanding all areas."

Assurance Pacific National pull out wouldn't be the end of the line

Tasmania's Infrastructure Minister says another rail company is keen to discuss its options should Pacific National pull out of the state.
Pacific National's parent company Asciano is considering selling or closing its Tasmanian services because they're underperforming and unsustainable.
In Parliament today, the Opposition urged the Government to make sure another rail freight operator is ready to start operating should Pacific National leave.
The Infrastructure Minister Steve Kons says he's taking the issue seriously.
"I have instructed my department to keep a watching brief over it, and to explore the possibility of contingencies, should this operation cease," he said.
"So we are taking prudent action, I've got a meeting with an alternative rail operator at their insistence in the next couple of weeks, so I am certainly on top of this matter," Mr Kons said.

Ship pollution cools the atmosphere, says scientist

07 March 2008
Shipping cools down the earth’s atmosphere, a seminar in Brussels heard this week. Rather than contribute to climate warming, emissions from ships are having the opposite effect, one of the industry’s top scientists told a gathering in the European Parliament.
David Lee of Britain’s Manchester Metropolitan University said that shipping’s “cooling” effect easily outweighs the warming effect of the carbon dioxide it produces, by a potentially huge margin. The only snag is that the cooling agent is mostly sulphur, which has its own undesirable side effects, such as acid rain.

California continues to enforce emissions law

By Rajesh Joshi - Thursday 13 March 2008

California wants ships to burn cleaner fuel within 24 miles of the state.CALIFORNIA air regulators have refused to go away quietly after a major setback two weeks ago on their plan to make ships burn cleaner fuel within 24 miles of the state. This means the stop-start implementation of this unilateral law in the Golden State will continue to remain an obstacle for merchant shipping, despite a stated US position in favour of Marpol Annex VI and two clear-cut victories at the first two rungs of the US federal court system. The California Air Resources Board said in a notice to shipowners and operators this week that it would continue enforcing the state-level rule on auxiliary diesel engines while the state pursues an appeal of decision by the US Court of Appeals for the Ninth Circuit on February 27 that struck down those regulations. CARB has taken the position that federal law allows such ongoing enforcement pending further appeal. The state-level regulations were introduced effective January 1 last year. Following a legal challenge by the Pacific Merchant Shipping Association, a district court issued an injunction that forced CARB to cease enforcing the law as of August. A CARB appeal to the US Court of Appeals for the Ninth Circuit initially won the board preliminary relief pending disposal of the appeal. This enabled CARB to resume enforcement from October. The Ninth circuit decision last month meant CARB lost its case at both the district and appellate court level. Yet, in seeking to keep enforcement alive, CARB observed in its notice: “Because of significant adverse health impacts from human exposure to air pollutants emitted by ocean-going vessels in California waters, CARB has decided to resume enforcement of the regulation to protect public health in California while its appeal with the Ninth Circuit is pending.” Vessels that leave for California from their last port of call before March 14 will not be held accountable, CARB said. Leading US maritime law firm Blank Rome, in a note circulated to clients and constituents, said such an appeal has a “low probability of success”. Meanwhile, Marpol Annex-VI implementing legislation in the US remains mired in Congress. -->Bookmark and Share-->-->-->-->

Japanese Supermarket Delegation Welcomed

Minister for Economic Development and Tourism, Paula Wriedt, today announced the arrival of a delegation of visiting businesspeople from Japan’s Maxvalu and Kasumi supermarket chains.
Ms Wriedt said that the Department of Economic Development and Tourism has coordinated the four-day visit enabling the delegation to inspect selected Tasmanian food producers.
“Delegations such as this are priceless for promoting Tasmania’s superb natural produce and increasing the momentum we have with our exports which are currently breaking all records,” Ms Wriedt said.
“This delegation includes the produce buyers from both supermarket chains as well as the Managing Director of Maxvalu Tokai.
“Members of the delegation arrived on the Spirit of Tasmania this morning and will spend the day visiting many north-west coast food producers including vegetable processors Field Fresh, Harvest Moon and Premium Fresh.
“Other visits on the itinerary include Petuna Seafoods in Devonport, Tashimi Fish in Kings Meadows and Reid Fruits at Plenty,” Ms Wriedt said.
Ms Wriedt said that Maxvalue and Kasumi supermarkets are part of the AEON group in Japan, Japan’s largest retail conglomerate in terms of sales.
“The AEON group has a long-established relationship with Tasmania,” Ms Wriedt said.
“Since 1974, AEON has owned Tasmania Feedlot Pty Ltd at Powranna in the north of the state and all product from the feedlot is marketed as Tasmanian beef throughout the AEON group’s 688 stores throughout Japan.”
The delegation leaves Tasmania on Sunday after enjoying some sight-seeing and a dinner hosted by Economic Development and Tourism.

AQIS slip-up leads to cattle disease export

By Jane Bardon
Wednesday, 12/03/2008
Australia's quarantine authority is in trouble again.Not with allowing a disease in, but one out.Australian cattle exported to the pacific island of New Calendonia have infected local cattle with tick fever called babesiosis.The Federal Government is blaming the Australian Quarantine and Inspection Service, saying the outbreak is due to a certification error.In November last year AQIS allowed 43 cattle vaccinated with a live vaccine to be sent to New Caledonia.That's contrary to New Caledonian laws, which say cattle must be drenched with chemicals. The live vaccine in the cattle has now spread tick fever into the country's herd. Federal Agriculture Minister Tony Burke says AQIS made a mistake."It seems clear that there was a certification error by AQIS, and as a result of that error that there may be a significant impact on the beef industry in New Caledonia."Controlling the tick fever costs the Australian cattle industry over $20 million a year.Now Australia could be hit with the costs of the New Caledonian outbreak as well as compensation claims.New Calendonia is French territory and Tony Burke says he has met has been meeting the French Ambassador to Australia to offer help to try to repair the damage."Preliminary advice is that treating all the cattle, those exported from Australia and the New Caledonian cattle in contact with them, by injecting the chemical imazol would kill the organism in the cattle and prevent further transmission of the diseased ticks."I understand that AQIS is also seeking advice on how the disease could be eradicated from the New Caledonian tick population."Suspected AQIS mistakes led to the multimillion dollar horse flu outbreak.This latest AQIS bungle has the potential to damage Australia's reputation as an exporter of disease free livestock around the world.Some livestock exporters say they're worried the incident could affect other export markets. They don't want to speak out because they have to get their operations certified by AQIS every year.But the Live Export Industry is denying that Australia's exports could be damaged.Livecorp chief executive Cameron Hall said: "Each importing health protocol for an importing country is different, and significantly different in most cases."So most of the importing countries have a history of performance with regards to receiving Australian live animals into that marketplace, and meeting the importing country health protocol requirements."So does Cameron Hall think Australia's reputation is so good in our export markets that this incident won't damage confidence?"There may be questions raised, but history and performance over a long period of time accounts for an important aspect of the industry."Australia's director of Quarantine Conall O'Connell admits AQIS has made a mistake."This appears to have happened by a transcription error in the certification of the exports to New Caledonia and it's a regrettable error."So doesn't AQIS have a double checking mechanism to make sure this can't happen?"Yes there is a checking mechanism which should pick this up and we will need to be very clear why this didn't happen."Under normal conditions we would be confident our certification processes are amongst the leading in the world."So is Conall O'Connell confident Australia's reputation in other livestock export markets won't be affected by this incident?"Yes, I'm confident that our certification processes will retain the confidence of importing countries, the critical issue for those countries would be to undertake audits if they believe they were necessary."And following those audits to make an assessment of their level of confidence."I would expect that to be the case not withstanding we have a regrettable incident here with New Caledonia and we are looking with New Caledonia to quickly assist them with eradicating this disease."
In this report: Tony Burke, Federal Agriculture Minister; Cameron Hall, chief executive Livecorp; Conall O'Connell, Australian Director of Quarantine

Fruit logistica 2008

By Cameron Wilson
Monday, 10/03/2008
From Paris to Russia, Hong Kong and Taiwan, each summer Tasmanian cherries can be found in markets around the world. So this year Bruny Island grower Jon Grunseth decided to follow his crop, and see for himself how his cherries looked once they hit the shelf.With production at his orchard expected to hit 300 tonnes in the coming seasons, the tour was also about finding new customers for the fruit. The journey started at the Fruit Logistica expo in Berlin before heading to Paris and onto Asia. "43,000 people come to this 3 day fair to look at fruit and vegetables.""We had the only cherries in the entire show, we flew in fresh fruit for the show and handed it out as samples."John Grunseth says the 32 mm cherries generated significant new customer interest."The obvious candidates Spain, Italy, France, Germany, Norway, Russia, in fact Russia last year was our largest country we shipped to. We had buyers from mainland China, India."
In this report: Jon Grunseth, Black Devil Cherries on Bruny Island.

Clampdown on misleading 'green' labels

By Jane Bardon
Tuesday, 11/03/2008
Consumers are increasingly are demanding more food produced with environmentally friendly values.But the national consumer watchdog says in many cases shoppers are being conned by labels and advertising. Farmers are also worried they'll have to pay more to produce green food, but won't get paid more for it.From big retailers like Woolworths to niche hobby farms, it seems the whole food industry wants to capitalise on enthusiasm for environmentally produced products.But not everyone's playing fair.The Australian Competition and Consumer Commission is getting an increasing number of complaints.So chairman Graeme Samuel has laid down new guidelines."The guidelines which span quite a number of pages can be summaried in two words: be honest or be accurate. They relate to the prhibitions in the Trade Practices Act against misleading and deceptive conduct."We are seeing claims being made about green, eco friendly, energy efficient products which can't be substantiated. "Some say that less water has been used or a particular environmental benefit is incorporated, when you analyse it, the reduction in water use is one or two percent or the environmental attribute that's is included in the product is of very small proportions, you've got to say, what impression is being given to the consumer by the marketing technique being used?"Graeme Samuel is promising stiff penalties if companies don't comply."Whether or not we get a financial penalty of a million dollars, with big companies ultimately that's not the real issue. The real issue is the publicity and the reputational damage that occurs and I have to say that we never ever settle matters relating to breaches of the Trade Practices Act in private."Woolworths is introducing labelling to show how much energy has been used to make and distribute its own brand products.But its chief executive Michael Luscombe is warning farmers most consumers are expect more eco friendly food, but arent prepared to pay more.And that's exactly what the National Farmers Federation's chief executive Ben Fargher is worried about."When consumers demand greater choice in regard to environmental issues then they are going to have to pay for that. If they pay more it enables the farmer to be able to provode that choice."But if the consumer expectation is that they can always get more for less, that means that farmers have to bear the extra cost of providing the environmental benefit and that squeezes their profit margins."The drive for eco food also has the Federal Government worried.Agriculture Minister Tony Burke has blasted the European Union for threatening to block imports of food transported long distances.But he isn't yet offering food exporters any practical assistance to combat anti food miles campaigns.
In this report: Ben Fargher, National Farmers Federation chief executive; Graeme Samuel, ACCC chairman

Strong dollar rules out Tassie apple exports

Report: Cameron Wilson
Exports of Tasmanian apples have all been written off this season. The harvest of early varieties started about a week ago, which is slightly earlier than normal due to the dry, hot weather. It's still too early to predict final tonnages, but what is known is that the high Australian dollar is ensuring almost all Tasmanian fruit will be sold domestically.Managing Director of Australian Fruit Marketers David Adams says on the positive side, the crop looks more than acceptable."Quality is very good at the present time, there's no damage out there as far as hail and frost is concerned."Generally speaking, I can see the majority of our fruit being destined for the domestic market. Having said that, I know our company will be undertaking a limited export program, (there's a) possibility that may even be at a cost to our company but I just feel that it's important that we maintain those contacts for the future."
In this report: David Adams, managing director of Australian Fruit Marketers

Fruit logistica 2008

Report: Cameron Wilson
From Paris to Russia, Hong Kong and Taiwan, each summer Tasmanian cherries can be found in markets around the world. So this year Bruny Island grower Jon Grunseth decided to follow his crop, and see for himself how his cherries looked once they hit the shelf.With production at his orchard expected to hit 300 tonnes in the coming seasons, the tour was also about finding new customers for the fruit. The journey started at the Fruit Logistica expo in Berlin before heading to Paris and onto Asia. "43,000 people come to this 3 day fair to look at fruit and vegetables.""We had the only cherries in the entire show, we flew in fresh fruit for the show and handed it out as samples."John Grunseth says the 32 mm cherries generated significant new customer interest."The obvious candidates Spain, Italy, France, Germany, Norway, Russia, in fact Russia last year was our largest country we shipped to. We had buyers from mainland China, India."

Food miles

Report: Sarina Locke
There is a growing sentiment in Europe, that if they buy local, support farmers markets and eat less meat, they'll be "doing their bit for planet."That's misguided, says a New Zealand expert in trade and the environment.Caroline Saunders from Lincoln University told the ABARE Outlook Conference that their studies revealed that food flown in from New Zealand has a smaller carbon footprint.

Wine export volumes drop

A report shows Australian wine export volumes dropped five per cent in the past year. (Landline)
A report shows Australian wine export volumes dropped five per cent in the past year.
The Australian Wine and Brandy Corporation says at the same time, the average price of wine increased by five per cent.
The Corporation's Lawrie Stanford says the volume decline is due to short harvests.
"Volumes have declined as we have been expecting with two short harvests," he said.
"The 2008 harvest is coming in short and it follows up from a short harvest last year, which means that the industry is having the opportunity to draw down the oversupply of wine that we have had on hand for several years now."

Health, oil, rates: hits keep coming Danielle Cronin

Some Australians would struggle to afford private health cover and others would tear up their policies after insurers received official approval yesterday to raise their premiums 5 per cent.
The rise was part of a rash of bad economic news for Australian families yesterday.
The National Australia Bank announced it was raising its standard variable home loan rate by 29 basis points to 9.27 per cent.
Defying Government calls for restraint, the NAB’s rise is four basis points above the Reserve Bank of Australia’s quarter of a percentage point increase on Tuesday.
Oil prices also surged past $US105 for the first time yesterday.
A peak consumer group predicted pain for health insurance policyholders yesterday when federal Health Minister Nicola Roxon announced health funds would increase their premiums 4.99 per cent on average. Ms Roxon conceded the rise in health insurance premiums would put ‘‘a lot of families under pressure’’.
‘‘[But] our intervention has meant that over three million Australians are going to be paying less for their premium increases than they would have if we had not intervened,’’ she said.
Ms Roxon had urged several health funds to review their annual applications to raise premiums because she feared some wanted increases that were ‘‘larger than necessary’’.
‘‘But we are [now] satisfied that each fund has convinced us either that these are the minimum necessary or have been able to reduce the amounts that they were seeking,’’ she said.
She was still talking with one health fund that was seeking an ‘‘extremely high’’ increase and she saw rejecting the bid as a ‘‘very serious option’’.
Overall, health insurance premiums would rise by 4.99 per cent from April 1 and families would pay about $100 more annually for the average policy as a result. But Ms Roxon said the sector had originally applied for a 5.21 per cent increase. ‘‘So the reduction that has been achieved is nearly a quarter of a per cent,’’ she said.
‘‘Obviously it will still put pressure on many working families but we have, we believe, intervened in a way which makes sure these increases are the minimum possible that can be delivered while the industry remains viable.’’
Opposition health spokesman Joe Hockey said the Labor Government had displayed its hypocrisy.
A year ago, Ms Roxon attacked the Coalition government for increasing private heath cover premiums by 4.5 per cent but she approved a 5 per cent rise yesterday.
‘‘Labor said it would protect working families from fee increases.
Today working families are feeling betrayed by Labor’s hypocrisy,’’ Mr Hockey said.
Australia’s largest private health insurer, Medibank Private, announced its premiums would increase 4.64 per cent on average.
Australians with a single membership would pay $1.07 extra a week and those with family memberships would $2.14 more weekly as a result. HBA would lift fees by 4.58 per cent, while NIB would charge 4.99 per cent more for private health cover.
In the past financial year, the Federal Government spent $3.3 billion to subsidise private health insurance through rebates.
The privately insured receive a 30 per cent rebate on their premiums, which increase to 40 per cent for those aged 70 years or older.
Premiums had skyrocketed by more than 50 per cent since 2001, taking into account the new increase that outstripped inflation.
Some Australians would struggle to afford private health insurance and others would tear up their policies as a result, according to a health policy officer with peak consumer group Choice, Michael Johnston.
‘‘Any increase is bad for consumers especially at this time when interest rates are going up,’’ Mr Johnston said. ‘‘It really highlights to us the concerns we have about the value for money that people get out of private health insurance.’’

Shanghai's certified 'green ships' skip inspections, win priority treatment

FOREIGN vessels visiting Shanghai port can now apply to pass an assessment programme and enjoy privileges, including exemption from some ship inspections, Xinhua reported.
The Shanghai Green Ship Scheme is now open to vessels that are "safe, non-polluting and of good quality", according to the Shanghai Maritime Safety Administration.
Foreign vessels that pass the assessments will be granted privileges effective for two years. They would include exemption from vessel inspections, priority in using the deep waterways at the mouth of the Yangtze River and priority in handling customs procedures, the report said.
Foreign vessels visiting Shanghai port have been increasing at a rate of 10 per cent year by year and the total number came to 35,000 in 2007, the report added.

Michael Aird, MLC Treasurer More Good Economic News

Thursday, 6 March 2008

Exports and dwelling approvals in Tasmania continue to grow.
The Treasurer, Michael Aird, said the latest Australian Bureau of Statistics figures showed that exports from Tasmania grew by 5.2 per cent in the year to January 2008.
“The value of exports reached $3.63 billion in the year to January 2008 and outstripped the national growth rate of 1.8 per cent,” Mr Aird said.
“Asia remains the most important export destination for Tasmania, with Japan being the single largest importer of Tasmanian goods in the year to January 2008, accounting for 19.4 per cent of the State's total exports.”
Mr Aird said the number of dwelling approvals in Tasmania increased by 2.8 per cent in January 2008 to be 6.1 per cent higher than one year earlier.
“The value of residential approvals in the year to January 2008 was 6.2 per cent (or $39.0 million) higher than the value of approvals in the previous year,” he said.
“Interest rate increases should eventually have some impact on our housing sector but, to date, it continues to grow, in contrast to many other states.
“These figures come on top of yesterday’s ABS data showing Tasmania’s economic growth topped the nation in the December quarter.
“While there are challenges ahead from the slowing world economy and high interest rates, we have billions of dollars of private and public investment foreshadowed for Tasmania.
“I am confident Tasmania can maintain its economic momentum.”

New Board To Facilitate Irrigation Projects

A new Tasmanian Irrigation Development Board is to be established to facilitate urgent water developments that will help drought-proof Tasmania.
The Premier said the initiative was part of the Government’s $80 million commitment to foster major water developments around the State, in line with his key priorities outlined in Agenda 2008.
“We need to invest now to drought-proof our State,” Mr Lennon said.
Mr Lennon said investment in water development projects was vital for Tasmania’s future.
“It is vital for water security, economic development and community confidence because without it, we risk the sustainability of many regional communities,” he said.
The new board to be headed by John Lord, the current Chairman of Transend and will include a mix of industry, major project management and financial expertise.
Mr Lennon said the feasibility of a number of water development projects in the Midlands and Southern Midlands, the North-East Central Highlands and North-West were being assessed to get them to the construction stage.
The projects include:
· Forth River Pipelines - $32.4 million delivering 19,000 ML;
· North-East Dams - around $77 million delivering up to 70,000 ML;
· Meadstone Dam - around $9 million delivering up to 30,000 ML;
· South Esk Basin - around $30 million delivering 30,000 ML;
· Midlands Water Scheme - $100 million delivering at least 50,000 ML; and
· Shannon-Ouse-Clyde Project - $53 million delivering 21,000 ML.
“In total, these project have the potential to increase irrigation water supplies by over 250 thousand megalitres every year – that’s more than 10 Meander Dams,” he said.
“The State Government is now working in partnership with key stakeholders to bring these projects to reality.”
Mr Lennon said that with the inclusion of Commonwealth funds, a total of $220 million was now available for water development projects in Tasmania.
“Over the coming three years, we will witness the greatest on-ground water development activity seen in Tasmania since the boom days of hydro development,” he said.
Further information:
Tasmanian Government Communications UnitPhone: (03) 6233 6573

Growing Tasmania Through Infrastructure

Some of the largest transport infrastructure projects ever seen in the State’s history are about to commence, the Premier, Paul Lennon, said today.
In his Agenda 2008 address to Parliament, Mr Lennon said while the State Government had proactively funded infrastructure with a long-term view of Tasmania’s future needs, it was now time to take that commitment to a new level.
“Efficient and effective major infrastructure is an economic necessity,” the Premier said.
“It provides the structure around which the rest of the economy can grow and a suite of vital infrastructure projects are before us that will help Tasmania continue moving forward.”
Mr Lennon said development of a new road and rail transport hub in the Brighton area would provide major benefits to the State.
“This project will improve rail operational efficiency, reduce travel times to the northern ports and open up the current Hobart railyards site for the development of a new Royal Hobart Hospital.
“The State Government will fund the Brighton Transport Hub and the associated road and rail upgrades in partnership with the new Federal Government.”
Mr Lennon said land to the south of Boral Quarry at Brighton had been identified as the preferred site and best location in the long term.
“Pre-planning investigations into environmental and heritage issues have now commenced and we are in the process of appointing a project director and team to drive this work forward,” he said.
“On current estimates, construction is expected to be well progressed by the end of 2009 and it is anticipated that the rail yards could be moved to the new site during 2010.”
Mr Lennon said the Brighton Transport Hub would allow full use of Tasmania’s rail system.
“The more freight that we can get off our roads and onto rail, the safer and more efficient our roads will be,” he said.
“The Brighton Transport Hub will be an important road and rail connector for all of Tasmania.”
Further information:
Tasmanian Government Communications UnitPhone: (03) 6233 6573

Climate Change Target To Be Law

The Premier today announced the Government would legislate to reduce Tasmania’s greenhouse gas emissions as part of a comprehensive new framework to tackle climate change – one of the State Government’s key priorities in Agenda 2008.
“We’re drawing a line in the sand for the sake of future generations,” Mr Lennon said.
Mr Lennon said the Government would introduce legislation in the first half of this year which sets an emissions reduction target for the State of 60% of 1990 levels by 2050.
We will become only the second state in Australia to legislate reduction targets.
The Bill will also establish a new Tasmanian Climate Action Council that reports directly to the Premier.
“This will be a high-level, independent Council that will play a key role in monitoring and reporting on Tasmania’s performance against its reduction targets,” Mr Lennon said.
“Respected environmental academic Dr Kate Crowley will be the inaugural chair of the Council and other members will come from science, industry, government and the broader community.”
The Premier today tabled in Parliament Dr Crowley’s Framework for Action for Reducing the Tasmanian Government’s Greenhouse Gas Emissions.
The Framework sets out six areas for action:
· An audit of the Government’s greenhouse gas emissions;
· Design of a monitoring and reporting system for emissions;
· Setting of emissions targets for Government agencies;
· Action to reduce emissions;
· A program empowering Government employees to generate ideas for climate change action in their workplaces; and
· A process to evaluate and review climate change initiatives and programs.
“The Government will implement all of the priorities in Dr Crowley’s framework and we have already begun taking action,” Mr Lennon said.
“Tenders for the emissions audit and design of the monitoring and reporting system are currently being considered.
“I believe the Government car fleet’s greenhouse emissions should be taken to task and I announce today that the Government vehicle fleet will be carbon neutral by July, 2010.
“Minimum greenhouse ratings for new fleet vehicles will be introduced straight away, starting with my ministerial car, and more hybrid and alternative-fuel vehicles will be ordered.
“We will be moving immediately, in a partnership with Greening Australia, to offset the carbon emissions produced through government air travel. This is the first such partnership between Greening Australia and a state government anywhere in Australia.
“To improve energy efficiency of Government buildings, Cabinet will consider a report by 30 June, 2008 on the installation and use of solar panels and solar hot water systems as alternative energy sources on major Government-owned buildings.”
Mr Lennon said implementing Dr Crowley’s framework was just one element of the Government's climate change agenda.
“The climate change strategy for the State is being finalised and will be released in the coming months,” the Premier said.
Mr Lennon pledged his Government would continue to act on climate change throughout the year ahead.
“Tasmania must do its part to help combat the greatest environmental, economic and social challenge of our time,” he said.
Further information:
Tasmanian Government Communications UnitPhone: (03) 6233 6573

Premier Announces New Agenda

Premier Paul Lennon today outlined his vision for Tasmania’s future and an agenda for the year ahead in his Agenda 2008 address to State Parliament.
“We are laying out a clear vision for the people of Tasmania - an action plan and criteria for achievement against which we will be measured,” Mr Lennon said.
The Premier listed his key priority areas for 2008:
· A Social Inclusion Strategy;
· Taking action on climate change;
· Building more public housing and reducing homelessness;
· Improving support and care to children and families;
· Lifting literacy and numeracy standards;
· Drought-proofing Tasmania;
· Growing Tasmania through investment in infrastructure; and
· Further building on the Tasmanian brand.
The Premier announced the appointment of a number of highly-regarded experts to provide input on government strategy in their respective fields. “We must combine the best of local thinking with solutions from interstate and overseas,” Mr Lennon said.
Mr Lennon placed particular emphasis to the needs of children.
“Today’s children are tomorrow’s Tasmania,” he said.
“I am committed to seeing our children leave school with standards of literacy and numeracy equal to or better than any in the country.
“I am committed to those children going home each day to strong and healthy families and to adequate housing.
“I am determined that we will lead Australia with our program for social inclusion.”
Mr Lennon said he was proud to be able to outline such a progressive new agenda for Tasmania.
“This is open government at work,” he said.
“This is an exciting time for Tasmania. We are leading Australia in so many social reforms and I am determined to maintain that momentum.”
Further information:
Tasmanian Government Communications UnitPhone: (03) 6233 6573

Drought end 'not yet in sight'

By Jane Bardon
Monday, 03/03/2008
With heavy rain in some areas and a return to wetter conditions forecast for others, governments doing forward planning are asking, is the drought over?The answer from most of the agencies advising them is: no.With La Nina in full swing, the weather outlook, at least, is wetter for many areas.But Blair Trewin from the National Climate Centre says some areas will still miss out this year."The outlook for the Autumn is leaning slightly towards above average rainfall in many parts of the country, particularly New South Wales and Queensland, continuing the pattern that has established with La Nina."But the outlook for the WA wheatbelt and Tasmania and southern Victoria is leaning towards being below normal.""While the outlook is promising in areas we are a long way from being able to see we can see an end to the longterm drought in the near future."Blair Trewin says its also uncertain how long the La Nina will last, but its likely to end this year. If we went back to an El Nino pattern after that we could get drier years again.Farmers in 70 percent of Australia are still claiming drought relief.The support package in a quarter of the drought declared areas comes up for review in June by the National Rural Advisory Council.The Federal Department of Agriculture's Exceptional Circumstances Manager Jenny Cupit says a return to more rain won't mean farmers will immediately lose support."They look at all of the climatic conditions, the agronomic conditions and the economic situations of all the farmers in those areas."They must have been able to show that there is some sort of economic period of recovery been entered into before they are taken out of exceptional circumstances."So how long a period of recovery would rule an area out of drought support?"It really depends on the kind impact rain or other things that have changed, have changed the situation in the areas, and how much of the impact is being felt on the ground, so a couple of months of rain may not necessarily mean that they've started a recovery, but several months may."All of the Murray Darling Basin is drought declared, and the water situation remains dire.The Murray Darling Basin Commission says despite above rain in many areas, the Murray only has 15 percent of its usual water.Irrigators on no, or very low, water allocations aren't likely to see an improvement this year.Chief executive Wendy Craik says it might take several years for the situation to improve."Its our view it would take several years of really substantial rainfall to restore the storages to the sorts of levels which we are historically accustomed to. I guess the thing we might need to start thinking about is that maybe the sort of environment we seem to be facing right now is going to be more like the norm that we face in the future rather than anticipating that we are likely to go back to what it used to be in the past."
In this report: Blair Trewin, National Climate Centre; Jenny Cupit, Department of Agriculture Exceptional Circumstances Manager; Wendy Craik, Murray Darling Basin Commission

Commodity exports to hit record $189bn

By Adam Gartrell
March 04, 2008 08:50am
AUSTRALIA'S commodity export earnings are tipped to rise to record levels next financial year.
The Federal Government's commodity research agency has forecast earnings will increase by 30 per cent to a record $189 billion in 2008-09. The Australian Bureau of Agricultural and Resource Economics (ABARE), in its March issue of Australian Commodities, said the developing world's thirst for commodities would continue to drive growth in export earnings in the period ahead. ”The growth in export earnings forecast for 08-09 mainly reflects increased shipments of iron ore, coal, gold, LNG, grains and oilseeds in response to strong demand in overseas markets,'' ABARE executive director Phillip Glyde said. The total value of Australia's minerals and energy exports is forecast to rise by 33 per cent to a record $153 billion next financial year. Ore No 1 exportIron ore is expected to be Australia's largest export commodity, in value terms, in the coming financial year, followed by metallurgical coal, thermal coal, gold and crude oil. ”Over the medium-term, the value of Australian commodity exports is projected to rise in real terms to $187.3 billion in 2009-10 before gradually easing toward the end of the projection period,'' the report says. ”By 2012-13, Australian commodity exports are projected to be worth around $176 billion (in 2007-08 dollars), 21 per cent higher than the forecast value in 2007-08.'' Farm sector doing OKIf seasonal conditions are average, the value of farm exports is forecast to be $31 billion in 08-09, an 18 per cent increase on the previous year. ”The medium-term outlook for Australia's agriculture sector is strong in historical terms as a result of high global commodity prices and continued high levels of farm equity,'' the report says. But despite rising terms of trade, the farm sector faces a number of ongoing challenges, including increased competition from overseas producers and a strong Australian dollar, the report says. ”Further challenges emerging over the medium-term include increasing farm costs resulting from the introduction of an emissions trading scheme and other policies to address climate change.''

Qantas extends wet lease on six Atlas freighters

QANTAS Freight Enterprises has confirmed it is extending its wet lease on three Boeing 747-400 Freighter aircraft leased from Atlas Air by six years.
Qantas Freight Enterprises chief Grant Fenn said the new agreement demonstrates the airline's long-term commitment to growing its international air cargo business, reports Aircargo Asia Pacific magazine.
"The operation of our dedicated freighter fleet since 2003 has been a great success. They are used to operate a mix of scheduled and charter services and support Qantas passenger aircraft belly hold capacity to key cargo destinations around the globe," Mr Fenn said.
"We currently operate seven scheduled weekly B747F freighter services from Australia into China, five weekly services from China to the United States, four weekly services from the US into Australia and one weekly service from Hong Kong, Europe and Shanghai into Australia."
He added that in 2006/07 Qantas airlifted nearly 340,000 tonnes of cargo, up by more than 100,000 tonnes since dedicated freighters were introduced in 2003.

India's CONCOR to build 8 container depots, ties up with Allcargo

CONTAINER Corp of India Ltd plans to build eight container depots on top of plans by terminal operators to develop 40 facilities in the coming years, according to Railway Minister Lalu Prasad Yadav.
This comes as Container Corporation of India Ltd (CONCOR) formed a joint venture company with Allcargo Global Logistics to establish a container freight station (CFS) at ICD Dadri.
Today, 60 container depots are operational including three built by private companies, said Mr Yadav in a Reuters report.
The eight box depots will be open for business by 2010. "Six container depots will be ready by March 2009. The other two are expected by the end of calendar year 2009 or by the end of fiscal 2010," said a Container Corp spokeswoman.
Container Corp will invest INR400 million (US$10.08 million) on average for each depot, she said.
These developments come on the heels of plans revealed earlier by state-run Container Corp to invest INR30 billion by 2012 to add more container wagons, upgrade existing box rail terminals and fund its joint ventures with transporters, managing director Rakesh Mehrotra told Reuters in December.
The investment is intended to boost Container Corp's competitiveness after its monopoly on operating container trains was ended in 2006, when the Indian Railways allowed 15 private operators to enter the market.
Container Corp operates 146 trains, while other operators run 44. "The number of trains run by other operators is expected to increase to 50-55 by the end of this year," the minister said.
India's container traffic is forecast to top 26 million tonnes in 2007/08 including two million tonnes contributed by new operators, he said.
In a related development, Allcargo Global Logistics and Container Corporation of India Ltd (CONCOR) have formed a joint venture company, which has not yet been named, to establish a container freight station (CFS) at ICD Dadri, Greater Noida in the state of Uttar Pradesh, to handle container traffic from North India.
The modern CFS would be developed on site measuring 40,000 square metres and will be designed to have an annual handling capacity of 84,000 TEU. The CFS is expected to commence operations by January 2009, reports the Equity Bulls news portal in Chennai.