No real winners in Amber Harrison ruling

There are no real winners from Amber Harrison's high cost, high stakes, circus-like legal battle with the powerful Seven Network.

While Ms Harrison is no unblemished innocent party in this saga, the former executive assistant limps away potentially financially broken and perhaps unemployable at least in the short term.

Here's my report on the ruling broadcast on the ABC's PM program

Justice John Sackar may have ruled in Seven's favour ordering Ms Harrison to pay their costs but will Seven risk the public perception of pushing of a confused single foster mother into bankruptcy in the face of paying Seven's legal bills?

Despite playing a hard and at times brutal game, the ABC understands that given the reputational damage already inflicted by the case, Seven is unlikely to pursue costs against Ms Harrison now having won the legal argument.

The challenge for Ms Harrison's ex lover, Seven West Media chief executive Tim Worner, is to move on from the scandal to recast Seven's image as a caring and compassionate media company with respect for women at all levels.

But as Justice Sackar observed in his ruling, there is no dispute that Ms Harrison brought much of the pain upon herself after breaching the terms of confidentiality agreements in return for payments of around $400,000 which prompted Seven to seek gag orders earlier this year.

At the same time Tim Worner - whose affair with Ms Harrison was consensual - is rebuilding a shattered reputation and remains on Seven's payroll despite calls for his sacking or resignation amid questions about his judgement.

Some company boards or government agencies may well have sacked or sidelined Mr Worner but he survives mainly thanks to the steadfast backing of Seven chairman Kerry Stokes who clearly regards him as a flawed prodigal son.

Seven West shareholders also have cause for concern about Mr Worner's judgement given the direction of Seven West's share price which had fallen to 79 cents from around $1.18 a year ago.

While the Amber Harrison affair is only a small factor in the share price demise, the unwanted headlines and uncertainty about Seven's direction have been the top agenda items for the Seven West board.

Despite the sensitivity, the former Victorian premier Jeff Kennett, a Seven West non executive director, engaged in a heavy-handed stoush with Ms Harrison on Twitter earlier this year after an interim injunction was granted against Ms Harrison.

Mr Kennett said he was not speaking on behalf of Kerry Stokes or the Seven West board but his aggressive commentary the next morning on the ABC's AM  program came hours before a Seven West Media results briefing where Kerry Stokes came under heavy questioning for his handling of the Amber Harrison matter.

Mr Kennett's abrasive style in slapping down a fragile Ms Harrison also attracted criticism given his role at the time as chairman of the depression initiative Beyond Blue.

All of the above is evidence that Seven needed to shut Ms Harrison down as the damaging case dragged on in the NSW Supreme Court and briefly in the Federal Court when star barrister Julian Burnside QC was enlisted to defend Ms Harrison.

Evidence was tendered to the NSW Supreme Court that Ms Harrison continued to brief journalists despite the confidentiality agreement and released highly sensitive documents unrelated to her affair with Tim Worner after a 2014 raid by the Australian Federal Police over alleged payments to convicted drug trafficker Schapelle Corby.

Seven’s strategy and tactics led by the network's hardplaying commercial director Bruce McWilliam have been brutal in exposing Ms Harrison's pursuit of revenge against Mr Worner.

Subpoenaed emails from Ms Harrison included threats to "take the nuclear option" and expressing emotion charged comments that she wanted to kill him.

Seven's payout to Ms Harrison and her decision to break confidentiality agreements has clearly infuriated Seven hence the warlike response to bring Ms Harrison into line.

But given Ms Harrison's decision to release her lawyers and walk away from the case, should Seven have done the same and called off the legal dogs?

The demolition of Amber Harrison - once again, who brought this action upon herself - comes as other parts of corporate Australia assess their policies especially after two senior managers at the AFL were stood down late last week for inappropriate relationships with young female colleagues.

Tim Worner has already apologised but he need to put his words into action to ensure that his mistakes are not repeated and that similar errors will not be tolerated at Seven.

As Australian Financial Review senior writer Aaron Patrick told me: "Kerry Stokes will not want Seven West Media and the Seven Network dragged through the mud again."

"I think they will not want any of their executives sleeping with secretaries ever again."

Competition boss Rod Sims warns big banks on levy - "we are watching"

Australia's five biggest banks have been put on notice that the competition watchdog will use new surveillance powers to ensure they don't pass on the new bank levy to customers or shareholders.

I speak with Rod Sims on the ABC's "AM" program

The Australian Competition & Consumer Commission (ACCC) will be able to summon bank chiefs for hearings under oath in addition to accessing internal reports and emails to track whether $6.2 billion dollar levy over four years is being absorbed.

While the regulator doesn't have the power to stop the banks from defying the government's order to pay the levy to help with budget repair, it's sending the a clear message to banks that their every move is being scrutinised.

ACCC chairman Rod Sims has kept an unusually low profile since budget night while forming a surveillance squad to monitor the inner workings of Commonwealth Bank, Westpac, National Australia Bank, ANZ and Macquarie Group.

Mr Sims told the ABC's AM program that watchdog will use its new powers to force greater transparency in banking competition with a particular focus on the new bank levy.

"Of course we don't have power to stop the banks from doing anything but I think the fact that we're looking will have an effect," Mr Sims said.

"But we'll not only get access to reports they do internally we'll have access to emails and other such things. We've got the ability to get them (bank executives) in to have compulsory hearings under oath."

The ACCC's bank squad will comprise about a dozen specialists assessing competition in the finance sector with the option of hiring in external consultants with insider banking experience.

However, Mr Sims confirmed the ACCC would not have the ability to place officials inside banks to turn up the surveillance heat.

Earlier this week, Treasurer Scott Morrison accused banks of using a "voodoo blackbox" to cloud the true cost of banking and how fees to customers are formulated.

But Mr Sims is confident the new powers provided to the ACCC in the budget will be enough to keep major banks honest.

"We have information gathering powers that give us access to their information explaining internally how they're doing what they're doing," Mr Sims told AM.

"That's information they'll have to provide because they have a hierarchy and various layers in the organisation. But that key starting point we have is access to that internal  information."

Mr Sims rejected claims by major banks that the bank levy was a last minute decision made in the days leading up to budget night.

"We had plenty of notice. We were given a look at the potential direction and were able to comment on that. So we had all the notice one could expect," Mr Sims said. 

But in the face of a fightback from the major banks, Rod Sims denies he is feeling the pressure from Scott Morrison to deliver on greater banking transparency.

"We're not in the pressure feeling business. We're pretty relaxed. We're asked to do a job and we'll do that job well."

The five major banks last night received confidential briefings on how the levy will work but were required to sign confidentiality agreements beforehand.

However, banks are expected to continue reporting to the stock exchange in the coming days on how the levy could impact future profits.

Ron Walker endorses TPG offer for Fairfax Media - but now media silence from former chairman

Former Fairfax Media chairman Ron Walker has endorsed a $2.76 billion takeover bid for the company by the US private equity group TPG and the Ontario Teachers’ Pension Plan.

In interviews with print journalists, Mr Walker said TPG's revised offer for entire Fairfax business would be a good outcome for shareholders and might protect Fairfax's quality journalism at The Age, Sydney Morning Herald and Australian Financial Review.

However, despite endorsing the TPG offer Mr Walker withdrew from a scheduled interview with the ABC's "AM" program after deciding to make no further comments.

Asked whether he had been pressured by Fairfax Media to remain silent on the TPG offer, Mr Walker told the ABC the decision was “my own call”.

A Fairfax spokesman confirmed the request did not come from Fairfax Media and that “we haven’t spoken to Ron”.

But earlier reacting to Mr Walker’s endorsement of the TPG offer,  the spokesman said "Ron's views are Ron's views".

"It's the best thing for shareholders," Mr Walker told The Australian Financial Review which is published by Fairfax Media.

"After having years of not great returns they have now got the opportunity to join one of the world's best dealmakers and make it a very successful company once again."

The intervention of Mr Walker - who led Fairfax from 2005 to 2009 - is seen as significant given concerns that TPG is a foreign predator only interested in the Domain real estate business and intent on breaking up the rest of once mighty media empire.

Mr Walker, who owns Fairfax shares, also anointed the head of the Domain real estate business Antony Catalano as the new chief executive of a restructured company.

"Antony Catalano has always been destined to be a CEO," Mr Walker told the Australian Financial Review.

The ABC understands the endorsement from the former chairman was not welcomed by Mr Catalano given the sensitive stage of the TPG proposal.

The Fairfax board says it is considering the revised offer from TPG of $1.20 a share for 100 percent of the company rather than the original bid for Domain and the three metropolitan mastheads.

The revised offer from TPG on Sunday improves the original bid of 95 cents a share that did not include Fairfax's regional newspapers, its New Zealand assets, its stake in the Macquarie Radio Network and a 50 percent share in the Stan streaming service.

The Fairfax board says if accepted the TPG bid would require approval from shareholders and the Foreign Investment Review Board (FIRB).

Treasurer Scott Morrison would have to endorse any decision from FIRB given national interest issues that could be raised by the sale and possible breakup of the once mighty Fairfax Media empire.

Fairfax shares closed higher yesterday at $1.19 having reached a six year high in the wake of the TPG proposal.

Follow Peter Ryan on Twitter @peter_f_ryan

Amber Harrison hired big gun Julian Burnside QC as battle with Seven escalates

Amber Harrison has hired prominent barrister Julian Burnside QC as her high profile  battle with Seven West Media moves to a new level.

Mr Burnside has confirmed that Ms Harrison will now counter sue her former employer after Seven escalated legal action over the release of confidential documents relaying to her ill- fated affair with Seven West chief executive Tim Worner.

Mr Burnside told the NSW Supreme Court that the matter needed to be switched to the Federal Court because Ms Harrison's cross claim relates to "substantial issues" under the Fair Work Act.

Justice John Sackur said he was inclined to agree with the switch to the Federal Court because the NSW Supreme Court does not have jurisdiction for Fair Work matters.

"It seems sensible that this should go to the Federal Court," Justice Sackur said.

Counsel for Seven David Thomas said the proposed move to have the case heard in the Federal Court came as a surprise.

However, Mr Thomas told Justice Sackur that his client wanted the Fair Work matter struck out of the cross claim.

Justice Sackur is yet to decide whether to release Ms Harrison's cross claim to journalists covering the case.

"I would normally accommodate the media under relevant legislation," Justice Sackar said.

However, he has asked representatives for Ms Harrison and Seven to reach an agreement on whether the documents should be released.

Amber Harrison - a former executive association at Seven - is under a temporary gag order preventing her from releasing more confidential documents allegedly gathered before leaving the media company.

Ms Harrison left Seven in 2014 after signing a confidentiality agreement that prevented her from speaking publically about Seven or her affair with Mr Worner.

The case is scheduled for a hearing in July but this could change if the matter switches to the Federal Court.

A hearing on Seven's request to strike out Ms Harrison's claim under the Fair Work Act has been set down for April 6.

Mums at home "the greatest untapped potential" says OECD study on Australian labour force

Young women at home looking after children represent "the greatest untapped potential" in Australia's workforce, according to an OECD report out today.

The Organisation for Economic Cooperation and Development also warns the Australian economy will continue to suffer unless mothers are encouraged back to work.

"There are potentially large losses to the economy when women stay at home or work short part-time hours, " the OECD says in its study of employment participation in Australia.

"One of the areas of greatest untapped potential in the Australian labour force is inactive and/or part time working women, especially those with children."

READ the OECD study

The OECD says tapping the potential of women, especially highly educated stay at home mums, would be a boost to the Australian economy.

The study says economic growth in OECD countries would increase by 20 percent over the next twenty years if female labour participation matched the level of men.

The reality check on the potential of women who chose to stay at home with their children coincides with the decision by Laborfrontbencher Kate Ellis to quit politics to spend more time with her young son.

However, the OECD maintains that paid employment is "important for women's personal well-being and perceptions of their overall quality of life."

According to the study, the employment rate of Australian women aged between 25 and 54 is at 72.5 percent but ranks in the lower third of OECD countries.

The employment rate of single mothers is 50.8 percent, the third lowest in the OECD ranking after Ireland and Turkey.

It also found that 54 women aged between 25 and 34 have university qualifications compared to 43 percent of men.

The OECD found that people with a disability, a mental health condition and disadvantaged youth are badly represented in Australia's labour force.

"These groups face considerable and other multiple barriers to employment," the OECD says.

"Lacking work experience, low education and poor health are the single most important employment barriers."

The OECD has urged a better combination of various government policies to assist overrepresented groups in particular indigenous Australians.

Insurance in super accounts eroding nest eggs, working group warns

A report out today says some Australians may have too much insurance cover unnecessarily tied up in multiple superannuation accounts.

The Insurance in Superannuation Working Group, which is backed by both industry and retail funds, says an overload of insurance within super risks a "rapid erosion" of some retirement nest eggs.

The working group's chairman Jim Minto told The World Today that while insurance within in super is valuable for some, younger Australians in particular are paying for insurance they don't need or can’t afford.

"It's great that it's there but younger people in society have more than one superannuation account and so you can have life insurance in each account when you don't need that much life insurance," Mr Minto said.

"If you've got too many policies, it will erode the balance too much. It's got to be enough (insurance) but not too much."

Mr Minto, a veteran of the life insurance industry, urges people with multiple superannuation accounts to consolidate polices to avoid over insurance.

But he concedes some Australians might not be aware the insurance cover even exists.

"A lot of people aren't aware but the awareness is increasing and we're seeing more people acting on the insurance and claiming on it," Mr Minto said.

"In some cases if you've got a large mortgage for example it may be good to have more insurance but we want that to be a conscious decision."

The working group today released the first in a series of discussion papers aimed to extending the Life Insurance Code of Practice to superannuation trustees.

As part of the review, the ISWG is seeking submissions on how to balance the need for retirement savings with default benefits such as life insurance and income protection insurance.

"People can have multiple income protections in different super accounts but you can only really claim on one so you're wasting money. We need to fix it," Mr Minto said.

The study comes as young Australians rein in household budgets to save a deposit to enter hot housing markets in Sydney, Melbourne and Brisbane.

The review also comes amid a regulatory crackdown on superannuation and insurance products with evidence of claims being delayed or denied by major banks and insurers.

The working group is backed by prominent lobby groups across the superannuation section including the Financial Services Council, the Association of Superannuation Funds of Australia and Industry Super Australia.

Master Builders appoints Denita Wawn as first female chief executive in 127 years

The blokey glass ceiling at one of Australia's male dominated business lobby groups has been smashed with the appointment of a female chief executive.

Denita Wawn's appointment at Master Builders Australia marks the first national female chief executive in the association's 127 year history.

Mrs Wawn, a former chief executive of the Brewers Association of Australia and New Zealand, replaces Wilhelm Harnisch who was at the helm for fifteen years.

Master Builders chose International Womens Day to announce Mrs Wawn's appointment citing her leadership qualities and success in driving industry campaigns at the National Farmers Federal and the Australian Hotels Association.

Mrs Wawn told The World Today her appointment represented a new era in terms of cultural change at Master Builders and across the building and construction industry.

"We need to ensure that women in the industry are recognised for their efforts just as much as men particularly in large, medium and small sized businesses," Mrs Wawm said.

But Mrs Wawn rejected a suggestion that the timing of today's announcement could be perceived as tokenistic.

"Not at all. My appointment was certainly a rigorous and merit based selection process that just happened to find a female in the role," Mrs Wawn said.

"It was a great opportunity to highlight on International Womens Day that women can strive for excellence and they can be leaders in their field including in male dominated area in building and construction but also in the political world."

Building and construction remains the domain of men with less than one percent of women in building trades and slightly more in professional roles like site and project management.

But on the gender pay gap, Mrs Wawn said she was "absolutely" happy with her negotiated pay deal compared to her predecessor.

"Women can undertake these roles. It doesn't matter if you have kids or not we do have the confidence and we do have the capacity to take leadership roles in Australia," Mrs Wawn said.

On broader policy challenges, Mrs Wawn said she would would be tacking housing affordability and developing the right messages to ensure the campaign for a corporate tax cut over ten years succeeds.

Mrs Wawm is an internal appointment having been general manager of operations at Master Builders Australia for the past year.

Seven worries Amber Harrison cross claim could be "scurrilous and scandalous"

Senior Business Correspondent Peter Ryan

Amber Harrison's planned counter claim against the Seven West Media could contain "scurrilous and scandalous material", the NSW Supreme Court has been told.

Counsel for Seven Sandy Dawson SC told Justice John Sackar that a court filing from Ms Harrison the night before the next hearing in two weeks time was a risk to his client.

"We have had some bitter experience," Mr Dawson told Justice Sackar.

Amber Harrison - one time mistress of Seven West chief executive Tim Worner - has been silenced with an interim injunction won by Seven which prevents her from leaking more confidential documents.

While agreeing to expedite the case to a hearing, Justice Sackar said he was reluctant to suppress the details of Ms Harrison's counter claim against Seven.

"This is not a censorship issue. I am not going to sit here as a censor," Justice Sackar told Mr Dawson.

However, Justice Sackar reminded counsel for both Seven and Ms Harrison not to breach privilege or the terms of the interim injunction in place against Ms Harrison.

Amber Harrison's cross claim will be heard on March 17 with a four day hearing set down from July 10.

Justice Sackar said he hoped Seven and Ms Harrison would use the time to explore mediation while saying he would not impose it until all efforts had been exhausted.

CBA to repay superannuation to part timers, says "we want to do the right thing"

The Commonwealth Bank has agreed to repay employer superannuation to part time workers that was not applied to extra hours or overtime over the past eight years.

The review of super guarantee payments follows complaints from six part time CBA employees brought to the attention of the bank by the Finance Sector Union and reported by the ABC last week.

In a statement to the ABC, a CBA spokeswoman said: "we agree these hours worked should have superannuation applied and we want to do the right thing by our people".

"If we identify an employee who is owed superannuation, we will reimburse it."

The CBA will repay super to all part time workers since 2009 including those who have switched to full time positions or have since left the bank.

The bank is yet to put a number on the staff set to be repaid, though last week the FSU said it could exceed 7,000 staff.

The average payment is $180 per year on average according to the CBA although in some cases the figure could be as low as four dollars.

While the reimbursements are tiny compared to the value of Australia's biggest home lender, the FSU had threatened to take the complaints to Fair Work Australia which could further harm the CBA's battered reputation.

The CBA is currently in constant damage control amid fallout from scandals at its financial planning division and life insurance arm CommInsure.

However, the CBA maintains is was not breaking the law by only paying superannuation on ordinary hours rather than extra hours or overtime.

The statement says the bank's policy was based by a superannuation guarantee ruling issued by the Tax Office in 2009.

The superannuation backdown comes as Australia's Big Four bank chief executives prepare for their six month grilling by the House Economics Comittee in Canberra.

Commonwealth Bank chief executive Ian Narev is scheduled to face the committee on Tuesday.

Separately, a senate committee is investigating claims by Industry Super Australia and Cbus that around a third of Australian workers are being ripped off by rogue employers who are holding back some or all of their superannuation entitlements.

Amber Harrison, Jeff Kennett in Twitter war as Seven West Media wins court injunction

An extraordinary war of 140 characters has erupted on Twitter between between former Seven West Media employee Amber Harrison and Seven West board member Jeff Kennett.


An fiesty Twitter exchange between Ms Harrison and the former Victorian premier escalated late Monday after Seven West won an interim court injunction preventing Ms Harrison from using social media to publish confidential documents.


"You have bombarded me .. with threats if I tell my story. The only thing I have taken back here is my voice. And I intend to keep using it," Ms Harrison told Mr Kennett in a tweet.


"What you do not like is being called out for being hypocrites."


Mr Kennett hit back saying "what we do not like is you releasing commercial documents that have nothing to do with you claim and is not your property."


"We have respected the confidentiality (that) SWM and Ms Harrison signed up to twice. Time to correct the record."


Ms Harrison, former executive assistant and lover to Seven West chief executive Tim Worner, has been using Twitter to leak documents in recent days to counter legal action by Seven West lawyers.


The 39 year old has been threatening to expose what she calls the "truth" about internal matters at Seven West despite Tim Worner being cleared by an internal inquiry of wrongdoing including claims of drug use and credit card fraud.

Seven West obtained an injunction from the Supreme Court of NSW to prevent Ms Harrison from releasing documents or property of the company.

"It has became clear late last week that Ms Harrison is now releasing or divulging commercial in confidence emails and other documents that she has no right to hold," Seven West Media said in a statement.

Amber Harrison has accused Seven West of an orchestrated campaign to spin the scandal of her affair with Mr Worner which was known to the Seven West board three years ago.

"Jeff, your team leaked the tale they needed to protect your CEO in March 2015 - and then blamed me for it."

With the injunction hearing scheduled for tomorrow, Mr Kennett's public comments on Twitter are seen as unusual given the high stakes nature of the case and the reputational damage already done to Seven West.

Mr Kennett, who is also chairman of the mental health initiative Beyond Blue, has become Seven West's unofficial spokesman on the case when looks certain to descend into an murky, expensive and highly personal legal battle.

Billions wasted on bad infrastructure spending, global report warns

Infrastructure has been a buzzword on financial markets ever since US President Donald Trump promised to "rebuild America" with massive spending projects.

But a global report out today says billions of dollars are wasted on infrastructure projects because of bad planning, bureaucracy and the failure to retain good staff.

Listen to my interview with PMI chief executive Mark Langley

The US-based Project Management Institute (PMI) says Australia fares worse than the global average with $108 million wasted for every billion dollars spent on infrastructure.

Globally, the PMI study says organisations on average wasted $97 million for every billion dollars invested according to the responses of 187 project managers.

However, the outcome shows that for the first time in five years more projects are being completed more efficiently with waste down by 20 percent.

PMI chief executive Mark Langley told The World Today that a failure to retain good project staff was a key contributor to waste.

"Champion organisations do this very well. One of the key things that they do that Australia lags in is defined career paths  for project and program managers," Mr Langley said.

"They've identified a role in an organisation just like accountancy, law and engineering. In Australia, they do that substantially less than the global average."

Mr Langley, who is in Australia to launch the report, said a lack of attention to staff retaining good staff contributes to a "brain drain".

"There's an opportunity for Australian organisations to start to invest in careers of project managers in both the public and private sector," Mr Langley said.

Australia compares poorly to other competing nations where waste on projects has been reduced, according to the research.

India has the lowest waste of $73 million for billion dollars followed by China and the Middle East with $82 million wasted per billion.

PMI says Europe has the worst waste management with $131 million lost for every billion dollars invested.

Mark Langley says the rally in infrastructure spending after Donald Trump's presidential victory has been "quite positive".

But Mr Langley conceded there is a risk of disappointment if Mr Trump fails to deliver on the big spending plans.

"I think there's always a danger on that. But building out infrastructure is absolutely essential to economic growth."

Business Council boss Grant King says Australian credit rating needs to remain near AAA

Newly-appointed Business Council of Australia Grant King has warned that the government's AAA credit rating is at risk if efforts to repair the budget fail.

Mr King told the ABC's AM program that a ratings cut "just follows as a matter of logic" after Deloitte Access Economics forecast bigger-than-expected deficits over the next four years.

"If those budget deficits continue to expand then our credit rating will be at risk. I think that would be a correct statement," Mr King said.

"I think it is very important that Australia maintains a high credit rating. Whether it's AAA, it's certainly not much less than that.

"We are seeing indications that the deficit is deteriorating so it is going to be a challenge."

Mr King's warning of an imminent ratings cut came after the ratings agency Standard & Poor's reiterated that the Federal Government has six to 12 months to deliver on more budget savings and revenue measures.

Mr King underscored the importance of Australia maintaining the AAA sovereign rating to ensure it can deliver on services Australians have come to expect during the boom years.

"The government is like the community's insurer of last resort. We expect our governments to look after our community and our citizens if there's a disaster like cyclones in Queensland," Mr King said.

"In order for the government to have that capacity to support the community it has to maintain a good credit rating to be able to fund whatever those circumstances are."

The former Origin Energy chief executive of sixteen years is also expressed concerned that US president-elect Donald Trump will torpedo the Trans Pacific Partnership (TPP) by not participating.

Mr King says despite the absence of the United States, Australia need to find ways to encourage and improve global trade.

"Australia in a global context is a relatively small economy. We don't have a large domestic economy so trade is critical to Australia," Mr King said.

"We have to be an outward looking country. We can't run inwards and look to our own economy."

Mr King's appointment as Business Council president comes after criticism about the business lobby's power and influence from former Future Fund chairman David Murray and Liberal Party powerbroker Michael Kroger.

Former BCA president Catherine Livingstone and current chief executive Jennifer Westacott have been described as "out of touch" and "missing in action".

"Look I think there are many aspects of public debate out there that are making it more and more difficult for any organisation frankly to get its view across," Mr King said.

"So yes it might be right to say it's become more difficult. My hope is that in the next couple of years we can get better and better at that."

 Mr King also defended the government's plans for corporate tax cuts of $48 billion over ten years despite perceptions the money will go into shareholders pockets rather than create new jobs.

 "What the BCA's arguing for is a reduction in the rate of tax. Business would be happy to pay more tax in total but a lower rate is a key to doing that."

The business push for company tax cuts comes after confirmation that wages are growing at the slowest pace on record.

Rio Tinto executives sacked over Guinea consultancy payments

Read my story on ABC News Online

Source: Rio Tinto statement

Indigenous Australians' wellbeing 'stagnating or worsening': Productivity Commission

Indigenous Australians are becoming more disadvantaged with alarming increases in imprisonment rates, mental health problems and self harm, according to a damning Productivity Commission report out today.

The Commission's "Overcoming Indigenous Disadvantage" report says despite some positive trends, the plight of indigenous Australians has "stagnated or worsened" in critical areas of wellbeing.

Read the Productivity Commission report

Among the findings, the national indigenous imprisonment rates have surged by 77 percent over the past fifteen years with hospitalisation rates for self harm up by 56 percent over the past decade.

Listen to my interview with Productivity Commission deputy chair Karen Chester

The report points to a failure of policy and oversight, with the Commission estimating that only 34 of a thousand indigenous programs are been properly evaluated by authorities.

Productivity Commission deputy chair Karen Chester told the ABC's AM program the findings are a wake up call for all levels of government about the reality of indigenous wellbeing and whether the $30 billion budget is being properly spent.

"You want to know that money is being spent not just in terms of bang for buck for taxpayers but that we're not shortchanging indigenous Australians," Ms Chester said.

"Of over a thousand policies and programs, we could only identify 34 across the whole of Australia that have been robustly and transparently evaluated.

"At the end of the day, we can't feign surprise that we're not seeing improvement across all these wellbeing indicators if we're not lifting the bonnet and evaluating if the policies and programs are working or not."

The report is being billed by the Commission as "compulsory reading" and the most comprehensive report on indigenous wellbeing undertaken in Australia.

Aboriginal and Torres Strait Islanders were involved in the study which was produced by the Productivity Commission for a review into government service provision.

Despite the disturbing assessment, an number of case studies have been highlighted where good governance is contributing to the success indigenous organisations.

These include the Waitja Tjutangku Palyapayi Aboriginal Corporation in central Australia which helps communities to counter economic disadvantage and the Marius Project in the northern Victoria town of Swan Hill.

(Perhaps point to Things That Work chart on page 23)

The report says areas of health, economic participation, life expectancy and aspects of education have improved from the update two years ago with child mortality rates narrowing between 1998 and 2014.

The proportion of adults whose main income came from employment increased from 32 percent in 2003 to 43 percent in 2014-15.

But the Productivity Commission's Karen Chester says it is now up to state, territory and federal governments to take the report on board to determine what is working and what is failing.

"I think the clock has been ticking for a while already," Ms Chester said.

"We have the data, we have the analysis and we know what indicators are linked to the others."

While the report includes case studies of examples of "things that work" it says the small number available underscores the lack of indigenous programs that are being rigorously evaluated for effectiveness.

Cyber attack threats expose Australia to $16 billion risk, warns global insurer Lloyd's

The growing risk of cyber attacks leaves the Australian economy exposed to a potential $16 billion dollar damage bill over the next decade, according to one of the world's biggest insurance companies.

Listen to my interview with Lloyd's global chief executive Inga Beale

In a joint study with Cambridge University, the Lloyd's insurance giant has found that out of 301 global cities, Sydney ranks 12th in terms cyber attack exposure with $4.86 billion of economic growth at risk.

In its City Risk Index 2015-2025, Lloyd's says Sydney is the riskiest Australian city followed by Melbourne, Brisbane, Perth, Adelaide and Canberra.

Read the Lloyd's report  

Globally, Lloyd's warns that $294 billion is at risk as attempted and successful cyber attacks become more prevalent.

The warning comes after recent evidence of attempted cyber attacks at the Bureau of Meteorology, the Australian Bureau of Statistics and the Reserve Bank of Australia.

Lloyd's global chief executive Inga Beale told The World Today that dealing with the constant threat of cyber attacks is now critical for businesses of all sizes.

"It's not just for banks to worry about - it impacts retailers, travel and hospitality firms, education and healthcare providers, and any business with proprietary information worth protecting," Ms Beale said.

"Where a decade ago people would talk about preventing a cyber-attack, the reality is firms will be subjected to attacks. The issue is how you mitigate against that."

The Australian Cyber Security Centre recently said systems in government agencies had been hit with 1,095 cybersecurity incidents considered serious enough to trigger an operational response.

The Lloyd's study points to a report from the accounting firm PWC which highlights a 109% increase in detected security incidents in Australian companies, compared to a 38% global average.

Under proposed legislation before the Australian parliament, hacked companies that lose personal details, tax file numbers, medical records or credit card information would be required to report the incident and alert customers.

But Inga Beale warns that while big business and government agencies are at most risk, private individuals are at risk from personal information stored in smartphones and personal computers.

"We are living in a world where people carry a globally-connected supercomputer in their pocket and almost every important work document is stored in the cloud, on servers or online," Ms Beale said.

"The result is an explosion in the potential for cyber risk. The latest series of high profile data breaches is just the beginning. With the emergence of the Internet of Things the potential for cyber risk is enormous."

As one of the world's major insurers and reinsurers, Lloyd's is now seeing demand for cyber attack cover form a major part of its traditional business of insuring for global natural disasters and catastrophes.

Lloyd's says demand cyber insurance in Australia has increased by 16,828 percent in the past two years as businesses seek protection from current and emerging threats.

The Lloyd's index points to a range of other risks including power outages, terrorism, sovereign default, oil price shock, heatwave, drought and floods.

Consumers need greater rights to private data, Productivity Commission urges

Australian laws regulating access to personal private data are out of date and need to be overhauled to get in line with the digital age, according to a report out today.

The Productivity Commission says a move to mandate unrestricted access to private data is in the national interest and wants the government to introduce legislation to force government agencies and the private sector to share private information.

Read the Productivity Commission report

Under the proposed reforms, consumers could demand access to private data held by banks, GPS providers, insurer companies, doctors, health insurers and social media giants like Facebook.

In a world is rocked by digital disruption and a deluge of private data being held by governments and private companies, the Commission points to a data overhaul as top ten economic reform to the Australian economy.

Listen to the full interview with Productivity Commission chairman Peter Harris

While existing privacy laws would remain in place, the draft report says greater data sharing would create better competition, allow consumers to know more about their digital lives and maybe even get a better deal with a bank or on their power bills.

The Commission is proposing greater data access rights for consumers with the creation of a "Comprehensive Right" which would also include a greater ability for people to opt out of data collection activities.

Productivity Commission chairman Peter Harris told The World Today that while data is a major asset to Australia's economy, consumers currently have limited rights on accessing and levering their own personal information.

"Surprising though it may be to many, individuals have no rights to ownership of the data that is collected about them," Mr Harris said.

"Data is increasingly an asset, and when you create an asset you should have the ability to use it, or not, at your choice."

The data law reforms would give consumers the right to direct government agencies and private companies to transfer their information to a third party as part of a major shift in competition policy.

The Commission says the transfer of data would help consumers strike a better deal by making sectors such as financial services and energy utilities compete for business.

"This will give people and businesses who want to be active consumers genuine control over their data and will allow innovative businesses and governments the chance to offer those consumers better services," Mr Harris said.

The report also points to greater opportunities for improved health care, safer and more efficient infrastructure and machinery maintenance through "data driven" competition.

However the report warns it is a misconception that cyber risks will be limited if consumers continue to be denied access to their personal data.

"The risks from the proposed reforms are no greater than the risks today that are managed by any consumer who chooses to click a mouse and buy or subscribe to a product," Mr Harris said.

"And the same advice applies: be very choosey about who you share your data with."

The Commission warns Australia is "rapidly falling behind" other developed economies like the UK, US and New Zealand in reforming data access laws.

The proposed reforms are likely to be opposed by government agencies and private companies.

The Commission is calling for submissions and will hold public hearings on the proposed reforms later this month.

Bank owned super funds accused of gouging by delaying switch to default schemes

Banks are being accused of gouging customers by delaying the transfer of superannuation accounts into lower cost default superannuation funds.

Under new rules, retail funds have been given four years to switch accounts nominated as "default" into cheaper My Super products with a deadline of 1 July 2017.

Listen to the interview with Industry Super Australia chief executive David Whiteley

But research out today suggests bank-owned funds are dragging their feet by leaving default super in high cost legacy funds for as long as possible.

A study by Rainmaker Information commissioned by Industry Super Australia says banks are profiting by between $800 million and $1.8 billion in fees by stringing out the transition to approve default funds.

Rainmaker says given the aim of MySuper is to provide a default option for "disengaged passive members", the motivation of bank-owned funds need to be examined.

"The core question is to what extent have funds expedited this transition," the research suggests.

"This question is crucial because Rainmaker's annual superannuation fee surveys have revealed that MySuper products are on average 30% cheaper than regular corporate retail solutions.

"So the sooner members transition across to these lower cost products the sooner they start saving fees."

Industry Super Australia chief executive David Whiteley told the ABC's AM program the behaviour of bank-owned and retail funds was "unconscionable" and undermined public confidence in the compulsory superannuation system

"The retail and bank-owned super fund practice of leaving members' accounts languishing in more expensive legacy products requires greater scrutiny," Mr Whiteley said.

"The regulator would do well to ask if the product trustees are fulfilling their legal duties to put the interests of members over profits generated by wealth businesses inside the banks."

The research shows that although not for profit funds completed the transfers to MySuper by June 2014, retail funds are lagging with just 43 percent of funds switched by June 2016.

The Financial Services Council, which represents bank-owned and retail funds, maintains there is a clear timeline for the transfer to default funds.

FSC director of policy Andrew Bragg told the ABC that all existing money in the default super system must be transferred by June next year under longstanding legislation.

However, Mr Bragg said more competition was required as recommended by reviews conducted by Jeremy Cooper in 2010 and David Murray in 2014.

"Until there is competition for the $10 billion default contributions each year, MySuper will be an unfinished reform, " Mr Bragg said

RBA governor Philip Lowe warns Trump victory would not be a "benign event" for world

The governor of the Reserve Bank says the election of Donald Trump as US president would not be a "benign event" for the global economy.

Dr Philip Lowe says while there is no specific scenario planning for an increasingly unlikely Trump victory, the RBA prepares for events that could rock financial markets.

In his first official speech as RBA governor, Dr Lowe said the rise of protectionism was at the top of a list that was making him more worried.

Listen to the story here

Read the story here

Regulator puts banks, insurers on notice over risk culture

The prudential regulator has put banks and insurance companies on notice to improve their risk culture or face "greater supervisory intensity".

The Australian Prudential Regulation Authority (APRA) says the financial sector needs to pay greater attention to risk, warning that many institutions are "grappling" with how to best improve their risk management.

In an information paper released this afternoon, ARPA chairman Wayne Byres told institutions the regulator would step up surveillance if needed.

"APRA cannot regulate sound risk culture into existence," Mr Byres said.

"However, APRA will apply greater supervisory intensity to institutions that are either unwilling or unable to address behaviours that are inconsistent with prudent risk management practices."

APRA will also review the remuneration policies and practices of institutions it supervises to determine what role salary and incentives play in risk culture.

The information paper describes remuneration frameworks as "important barometers and influencers of risk culture."

The review will also examine the arrangements and outcomes for some senior executives and "material risk takers" at a sample of financial institutions.

APRA's review comes as co-regulators like ASIC (Australian Securities & Investments Commission) investigate banks and insurers over alleged unethical or unlawful banking behaviour.

Last week, ASIC released a report on the life insurance industry showing a high level of rejected claims for total and permanent disability (TPD) and trauma.

ASIC is also investigating the scandal at the Commonwealth Bank's insurance arm CommInsure as revealed by an ABC Fairfax investigation.

The chief executives from the major banks were grilled by a parliamentary committee a fortnight ago as the federal government continues to rebuff calls for a Royal Commission into the banking sector.

Brexit, Trump not concerns in Henderson Janus funds merger negotiations, says Andrew Formica

Henderson Group chief executive Andrew Formica has shrugged off concerns about Brexit and Donald Trump as he sells a multibillion dollar merger with the US funds giant Janus to investors.

Speaking in Sydney, Mr Formica told The World Today he is more concerned about tighter regulation of funds in the wake of the global financial crisis than Britain leaving the European Union, the rise of Donald Trump and the falling British pound.

Listen to the full interview with Andrew Formica

The merger, which is subject to investor and regulatory approval, will create a US$6 billion company and between them Henderson and Janus will have US$320 billion of assets under management.

"The discussion on Brexit is not really relevant to this deal in the sense that conversations (about the merger) started back in February and carried on prior to the vote," Mr Formica said.

"They weren't influenced by Brexit, they weren't accelerated or decelerated by Brexit. We're looking at something that you judge on a ten to 15 year view and discussions around the EU and the UK really will be a drop in the ocean."

Mr Formica is in Australia with proposed co-chief executive Dick Weil from Janus to promote the proposed deal to investors and institutions.

Both will head Janus Henderson Global Investors in a deal billed as "a merger of equals".

Mr Formica also said he was unconcerned about the falling value of the British pound against the US dollar and that the Brexit fallout did change the terms or rationale of the merger.

"Regardless of what form the UK takes in Europe going forward, the UK market will be a large market for us as a firm as will Europe," Mr Formica said.

"What's happening with the pound, what's happening with the UK economy was less relevant to this. So being a truly global business helps us diversify against any one market or risk."

While Janus has deep exposure in the United States, Mr Formica is similarly unconcerned about Donald Trump tilt for the White House and that his threat to unwind trade agreements could destabilise financial markets.

"Yeah, that was a concern but at the end of the day, again we see on the longer view that it won't have much of an impact."

Despite the relaxed comments about Brexit and Donald Trump, the merger is important for both Henderson and Janus given anticipated cost savings of US$110 million per year.

The Henderson Janus merger is seen as a possible prelude to similar marriages in a world of low interest rates and slowing growth.

However, Mr Formica says while it makes sense for Henderson and Janus, it might not necessarily work for competitors.

"The industrial logic of doing this makes a lot of sense and you could argue that other firms should do the same," Mr Formica said.

"But their ability to actually do it and bring it to fruition would be challenged."

Fed minutes show division but point towards December rate rise

The likelihood of the first US interest rate rise in a year has slightly strengthened after a number of Federal Reserve voting members said a hike would be justified "relatively soon".

With markets factoring in as much as a 70 percent chance of a December rate hike, several members noted higher rates would be warranted if the US economy continues to strengthen.

"Several members judged that it would be appropriate to increase the target range for the federal funds rate relatively soon if economic developments unfolded .. as expected," according to the minutes from the Fed's September policy meeting.

Read the minutes here

Despite signs of a stronger appetite for a rate rise, the minutes also signal caution and division among members about the actual timing on a rates move.

"It was noted that a reasonable argument could be made either for an increase at this meeting or for waiting for some additional information on the labor market and inflation," the minutes say.

"A couple of members emphasized that a cautious approach to removing accommodation was warranted."

The minutes show that three voting members on the Fed's rate-setting committee dissented on the September policy in favor of an immediate hike when rates were left at between 0.25 and 0.5 percent.

There is concern that "without gradual increases in the target range" a tighter labour market could result in "a subsequent sharp tightening .. that could shorten the economic expansion."

There also appears to be jitters that inflation remains below the Fed's two percent target with voting members noting that "there were few signs of emerging inflationary pressures."

Wall Street stocks ended 0.1 percent higher after the Fed minutes were released despite initial analysis showing little new information in the Fed's rates thinking.

The US dollar was slightly higher on the continued speculation that the Fed will push the rates button in December.

The Federal Reserve board next meets on November 1 but a rate rise is seen unlikely a week out from the US presidential election.

ASIC launches crackdown on life insurance industry as CommInsure probe continues

The Australian Securities & Investments Commission has announced a major crackdown on the life insurance sector after identifying what it calls "significant shortcomings" in the way claims are handled.

Read the review here

While ASIC has not found evidence of system misconduct, it has revealed the highest level of rejected claims relate to total and disability and trauma.

ASIC's crackdown comes as it continues to investigate claims of unethical behaviour at the Commonwealth Bank's insurance arm, CommInsure.

Here's my report from The World Today on ABC Radio.