Authors, booksellers fear Productivity Commission plans to allow cheap foreign imports

Authors and booksellers have slammed a proposal by the Productivity Commission that would change rules preventing the unrestricted import of books into Australia.

In a report out today, the Commission says current import restrictions on books are the analogue equivalent of "geoblocking" - the same way that consumers are stopped from accessing overseas streaming sites like Netflix.

The Australian Society of Authors warns a flood cheap imported books would hurt Australian authors and threaten the two billion dollar industry.

I spoke with the Society's chief executive Juliette Rogers on The World Today

Geoblocking encourages piracy and must end, Productivity Commission urges

Australian consumers should be able to legally circumvent geoblocking restrictions that block them from using foreign online streaming services like Netflix, according to the Productivity Commission.

In a draft report that urges a major overhaul of intellectual property laws, the Commission says geoblocking technology is "pervasive" and means Australians are offered a lower level of digital services locally and at a higher price.

Listen to my interview with the Productivity Commission's Karen Chester from this morning's AM

The report says Australian consumers should be able to access overseas streaming services like Netflix without the fear of infringing copyright laws and that the answer is not "big brother enforcement".

Read the full draft report

Karen Chester, a commissioner with the Productivity Commissioner, told AM that geoblocking restrictions have the opposite effect of encouraging internet piracy.

"Unless you've got a teenager that can help you get around the geoblocking, some people will be able to access and others won't," Ms Chester said.

"Those that won't will just breach copyright, do what we're all doing and get around the geoblock and access to the US Netflix or the Canadian Netflix.

"Making copyright material more accessible and more competitively priced online and not  geoblocking is the best antidote to copyright infringement."

Source: Productivity Commission

The practice of geoblocking blocks access on geographical borders but users circumvent the technology by setting up a virtual private network or VPN which masks their location and identity.

The Productivity Commission report says the Federal Government needs to send a clear message that it is not an infringement of copyright for consumers to evade geoblocking technology.

The government is also being urged to avoid entering international obligations or trade deals that support restrictions like geoblocking.

"People actually want to do the right thing. They're happy to pay for copyright but they want it now and they want it competitively priced," Ms Chester told AM.

Among a range of recommendations, the Productivity Commission says patents and copyright shelf lifes for books are no longer relevant to today's Internet connected world.

"You've got a system of intellectual property arrangements that were developed four centuries ago. Have they continued to keep up with the times?" Ms Chester said.

The report says copyright protection lasts too long and uses the example of an author writing a book today who lives for another 50 years being protected until 2136.

"Continuing to reward someone after they're resting in peace doesn't make a lot of sense," Ms Chester said.

Source: Productivity Commission

The Commission also wants an change to "fair use" provisions in copyright law saying the current laws are "too narrow and prescriptive" and don't reflect the way people consume content in today's digital world.

The report says updated fair use provisions would benefit schools, libraries and archives and would "foster certainty" for users.

CommInsure whistleblower slams CBA probe into unethical practices

The corporate whistleblower who was sacked after speaking out about the scandal inside Comminsure says he has no faith in the Commonwealth Bank's ability to investigate itself.

Comminsure's former chief medical officer, Dr Benjamin Koh, has told the Senate inquiry into financial advice that he was targeted for revealing  allegations of unethical behaviour inside the CBA's insurance arm.

Listen to my report broadcast on The World Today

The Commonwealth Bank maintains Dr Koh was dismissed for a privacy breach unrelated to his whistle-blowing and that he sent 260 Comminsure documents to his personal Gmail account in breach of bank policy.

But Dr Koh has rejected the CBA's claims and maintains he was sacked because he was a whistleblower and has since been vilified by senior CBA corporate affairs staff.

"I've got nothing to gain from doing what I did. But by implication they have smeared me. And I've also that PR persons have gone around backgrounding politicians and journalists about my character," Dr Koh said.

"I don't know what they've said but it can't be anything good."

Under questioning from Labor senator Sam Dastyari, Dr Koh said he had been sacked because of his revelations to a Four Corners/Fairfax investigation and not because of a privacy breach.

Dr Koh said his dismissal sent an stark warning to other whistleblowers.

"If you try to do it, you'll be in for it. I'm a medical doctor, I have my code of ethics. I'm trying to do the right thing. And I get fired for some stupid, farcical reason that I sent emails to myself," Dr Koh said.

"Every single employee at CBA will be looking at this process and saying I don't believe you. I'm going to just put my head down, pretend I didn't see anything, don't ask questions, don't question anything and get on with life."

Dr Koh was originally scheduled to face the committee in person but gave his evidence via telephone in a bid to protect his identity.

Camera crews had been told if Dr Koh did appear in person his face was not to be filmed and he could only be shown from the back or shoulders down.

Dr Koh, who had worked at Comminsure since 2013, also said he had no faith in the internal committee investigating the allegations surrounding unethical behaviour at the insurer.

Jeff Morris who earlier revealed the financial planning scandal at the Commonwealth Bank told the committee he had warned Dr Koh about the risks with being a whistleblower.

"It's a classic case of deja vu all over again," Mr Morris said.

"I told Ben what it would be like and it's played out exactly as I said to him. Dr Koh went forward with this in the full knowledge that this would happen."

Consumer prices fall for first time since 2008; chances of May 3 rate cut rise

Consumer prices have fallen for the first time since December 2008, with deflation of 0.2 per cent in the March quarter.

The Bureau of Statistics data show inflation was just 1.3 per cent over the past year.

Money market bets on a May 3 Reserve Bank rate cut surged from 11 percent to more than 50 percent after the inflation result hit. The Australian dollar dived a full US cent to be as low as 76.49 US cents.

Listen to my report and analysis on The World Today shortly after the data hit

A$ dives full US cent as low as 76.79 US cents after CPI release    Source: Bloomberg

Multinationals face steeper penalties for avoiding tax, warns Tax Office

The Tax Office has warned it is prepared to ask the Federal Government for even steeper penalties as part of its crackdown on multinational tax avoidance.

Listen to then interview with the ATO's deputy commissioner Jeremy Hirschhorn broadcast on AM this morning

The new missive comes as the ATO (Australian Tax Office) has confirmed that some multinational companies have created complex schemes to dodge tough new laws in tax avoidance introduced at the beginning of the year.

Deputy Commissioner Jeremy Hirschhorn told the ABC's AM program the ATO reserved the option of recommending penalties beyond the current level of 120 percent of the tax avoided.

"Fines of 120 percent are pretty tough penalties. But of course if the law is not working we have no hesitation to ask the government for changes in the law," Mr Hirschhorn said.

"There is an attitude in some companies that if things are permitted by law, no matter how artificial they are, that that's okay.

"There has been a minority who did seem to take it as a bit of a challenge to come up with an even fancier picture on a white board."

Yesterday the ATO released a series of taxpayer alerts warning multinationals it was tightening the tax avoidance noose.

Mr Hirschhorn said that while the  "vast bulk" of multinationals pay the right amount of tax, the ATO is now reviewing new "profit shifting" and "thin capitalisation" arrangements designed to avoid paying tax on profits made in Australia.

He says the ATO is talking to around 170 companies about whether their tax strategies are in line with the new laws.

And he warned that law firms advising multinationals on schemes that flout the law could find themselves targeted by the tax man.

"We have rules called the promoter penalty rules and the promoter penalty rules say that if you promote a tax scheme which is not effective then you are potentially subject to very significant penalties in your own right."

Mr Hirschhorn also reminded multinational that the Tax Office is prepared to flex its substantial muscle if warranted.

"We're on to these things quickly. We're not some defenceless group just waiting for multinationals to avoid tax. We are taking very active steps," Mr Hirschhorn said.

Saudi Arabia prince unveils plans to end oil "addiction"

Saudi Arabia has unveiled ambitious plans to eventually end the nation's historic reliance on oil production and exports to the rest of the world.

Deputy Crown Prince Mohammed bin Salman - second in line to the Saudi throne - has described the oil reliance as "an addiction" as he announced major plans to overhaul the economy.

Listen to my report from The World Today on ABC Radio

Part of the "Vision 2030" blueprint would see just under five percent of the state-owned oil company Saudi Aramco sold through an initial public offering which values the company at more than US$2 trillion.

The action comes as Middle East oil producers including Saudi Arabia reel from record low oil prices would could cut revenues by US$500 billion this year.

"Today, our constitution is based upon the Holy Book and on oil. This is very dangerous. We have a kind of oil addiction in the kingdom," Prince Mohammed told his first ever news conference with international journalists in Riyadh.

"We will not allow our country ever to be at the mercy of commodity price volatility or external markets.

"Our ambition is how we develop the economy more than nowadays, and how we can create an attractive and great environment in our country in order to be proud of our nation and to be part of development on economic, environmental, cultural, and intellectual levels."

The International Monetary Fund says oil producing nations in the Middle East - or OPEC - lost US$390 billion in oil revenue last year alone.

With US shale oil producers pumping more than ever before and Iran production coming back on line with US sanctions lifted, the planned Saudi reforms underscore the damage from falling revenues.

"There's no question that the Iranian deal has hurt them (Saudi Arabia) than anyone else. But this is fundamentally about the end of OPEC," Ian Bremmer from the Eurasia Group told CNBC.

"New technology is taking power away from the traditional oil producers who thought they had a grab hold on it since the 70s.

"Well sorry guys over the course of literally two years the US has gone from a high priced producer to a medium priced producer and you guys don't have a model.

"You've had 40 years to try to figure out what to do. They've wasted that time."

Among the reforms being considered to counter falling oil revenue, Prince Mohammed is looking at big structural changes in Saudi Arabia's ultra conservative economy - dealing with unemployment, creating more infrastructure projects, boosting home ownership and opening up the real estate sector to foreign ownership.

In a bid to boost the Saudi treasury coffers, the Prince is also planning to overhaul the Saudi military to prepare for what he is calling "the post oil era".

The prince wants more domestic production of arms, give that much of Saudi Arabia's US$46 billion military hardware budget is spent on deals with foreign arms manufacturers.

By Matthew Abbott. Dad and the Burma Railway: It changed his life and mine

https://soundcloud.com/peterryan-3/by-matthew-abbott-dad-and-the-burma-railway-it-changed-his-life-and-mine

Prince dead aged 57. Savvy businessman who fought the establishment.

The sudden death of Prince at the age of 57 has shocked so many people this morning as they began their days.

It is the talking point dominating the airwaves here at the ABC given the cross generational appeal of the seven time Grammy winner.

I spoke to Rob Cox, an editor with Reuters BreakingViews in New York, about the Prince legacy and how he took on the music establishment

Read Prince - the businessman from ABC News Online

Even the Bloomberg finance wire is running big on the Prince news.

Iron ore surge potential windfall for Budget; banks weigh price signalling in handling ASIC levy

There's been another surge in the price of iron ore overnight which is good news ahead of the Federal Budget on May 3.

Iron ore is sitting at US$64.30, up six percent over three days.

But there are questions over seasonal factors and whether the price can be sustained.

Meanwhile, banks are being circumspect about whether the ASIC levy will be passed on to customers because of price signalling laws.

Here's my report

Big banks unveil reforms in wake of Royal Commision calls

Australia's big four banks have promised major reforms to protect customers amid growing calls for a Royal Commission into unethical banking behaviour.

The Australian Bankers Association has outlined a review of sales commissions and the protection of whistleblowers.

The Bankers Association chief executive Steven Munchenberg spokes with me on The World Today.

Low rates a threat to super fund returns, RBA boss warns

The governor of the Reserve Bank Glenn Stevens has warned that today's world of ultra low interest rates is putting increasing pressure on returns for superannuation funds.

Mr Stevens says record low interest rates are "a big problem" for savers and that many stand to be "disappointed" about the direction of their retirement nest eggs.

Listen to my analysis from this morning's edition of AM

Speaking in New York,Mr Stevens told a conference that low yields for investors pose a problem for both defined benefits and accumulation funds with the "whole set of assumptions" for retirement income plans is being called into question.

"Increasingly we are hearing commentary about the difficulty or impossibility of defined benefit pension plans making good on their promises with long term rates of return being so low," Mr Stevens said.

"The problem almost certainly is not confined to defined benefit plans. Even accumulation arrangements are predicated on some set of assumptions about future income needs and returns.

"It may take longer but surely eventually many of the owners of these funds are going to feel disappointed."

Mr Stevens warned that in a world of sluggish growth that "implicit promises" about retirement incomes were in danger of not being fulfilled.

The warning about the danger of lower rates for longer comes almost eight years after the global financial crisis where major central banks have rates near zero or in the case of the European Central Bank and Bank of Japan in negative territory.

The weakening capacity of central banks to intervene follows trillions of dollars of quantitative easing, or metaphorical money printing, to put life into global growth.

Mr Stevens also warned about the risks associated with "helicopter money" where central banks directly pump cash into households and governments to boost spending and to kick-start stagnating economies.

"To my mind the main complication surely is that it would be a lot easier to start doing helicopter money than it would be stop, if history is any guide any way," Mr Stevens said.

"That's a decision governments have historically found very difficult to get right. And that after all is how we got to the point where central bank direct financing of governments is frowned on or indeed illegal in so many countries.

"So it would be a large step, I think, to overturn those taboos which exist for good reason."

The RBA next meets on May 3, coinciding with the Federal Budget which has been brought forward by a week.

While there is little chance of a rate cut then, many economists are tipping a rate cut to 1.75 percent by the end of the year.

A big factor is the surging Australian dollar which has hit 78.27 US cents as commodity currencies recover.

Speculation is rising that the Australian dollar might be a trigger for a rate cut given RBA concerns that it is complicating the transition out of the mining investment boom.

Wages slowing over past four years, Reserve Bank confirms

The Reserve Bank has confirmed what most workers already know - their pay packets been stagnating or getting lighter over the past four years.

In the minutes from its most recent meeting, the RBA points to the latest data on enterprise agreements between employers and employees which underscores the low or slow growth of wages.

The RBA says the low growth of wages is "already apparent" in the wage price index contained in the most recent National Accounts.

"Nominal unit labour costs had been unchanged for over four years, as the growth in employee earnings had broadly matched growth in labour productivity," the minutes say.

"Members noted that subdued labour costs had led to low household income growth."

But looking on the bright side, the RBA says the flatlining wages growth has enabled businesses to boost employment "by more than might have been the case otherwise".

The RBA says that while wage growth remained at "quite low levels", low inflation means domestic cost pressures remained subdued.

The reality check on worker pay packets comes in the minutes from the Reserve Bank's April 5 board meeting when the cash rate was kept on hold at the historic low of two percent.

The RBA also notes that in additional to wage growth is low, unemployment had fallen back to 5.8 percent in February. 

Last week, the jobless rate for March fell again to 5.7 percent.

But the RBA appears to be cautious about the outlook for a constantly falling jobless rate.

"Members observed that month-to-month volatility in the labour force was not unusual and that overall the labour market was noticeably stronger than a year earlier."

The RBA has also highlighted employment growth in non-mining sectors which had been "relatively strong" and that there was evidence that non-mining business investment had increased in New South Wales and Victoria.

Citing low inflation "over the next year to two", the RBA board said it was appropriate to "keep monetary policy accommodative."

However the Board said an appreciating Australian dollar could "complicate program" as the economy rebalances from the end of the mining investment boom.

Some economists believe coupled with low inflation, a high Australian dollar would be the trigger for a rate cut to 1.75 percent late in the year.

The Reserve Bank's board next meeting on May 3 which coincides with the decision to bring the Federal Budget forward by a week.

Money markets are factoring in a 15 percent chance of a budget day rate cut with a 50 percent likelihood by the end of the year.

Arrium administrator says no redundancies yet for Whyalla steelworks

Less than a week into Australia's most complex corporate restructure, the administrator to the failed iron and steel firm Arrium says the company's future hangs on the fate of its Whyalla steel works.

The insolvency firm KordaMentha says while many of Arrium's businesses are in "good shape", most are in some way exposed to the survival of Whyalla operation

But Arrium administrator Mark Mentha of KordaMentha is cautiously optimistic and told theABC's AM program that no redundancies are planned for Whyalla as yet despite the debt burden.

"We've not undertaken and have any planned redundancies at this point. We are going sort of planned, methodical, strategic approach," Mr Mentha said.

"When we are more informed we'll be in a better picture to be able to talk about what are the next steps in moving forward at Whyalla."

KordaMentha, best known for its administration of the airline Ansett fifteen years ago, will host the first meeting of Arrium creditors in Sydney today with a webcast going to Whyalla.

Mr Mentha will creditors that the turnaround of the Whyalla steel operation is the lynchpin of any restructure of the overall Arrium business.

"It's the front end of the business where we dig the ore out of the ground and feed that into the mill starts in the whole steel process," Mr Mentha told AM.

"And in Whyalla particular many of the businesses in that town are in some way connected to the steel works. So it's a business that is very much interwoven into the fabric of that community and the state of South Australia.

"The social disruption aspect is very large in the minds of everyone. So as we said at the outset we'll leave no stone unturned to find a way to maintain all of the businesses this group is a growing concern."

KordaMentha was appointed as Arrium administrator last week after a revolt by major banks and the Australian Workers Union forced the sacking of insolvency firm Grant Thornton.

Mr Mentha was forced to take the US bank Morgan Stanley to the Federal Court yesterday after it moved at the weekend to call in a US$75 million loan to Arrium's Moly Cop business.

But Mr Mentha said the Federal Court action means Morgan Stanley will now agree to work with other major banks with the aim of restructuring Arrium.

It was a matter that the administrators and with the assistants of the court, have the ability to bind all creditors.

And that was a process that we were using yesterday to capture a US bank that was originally outside the agreement that we've reached with all the other banks across the Arrium group.

"Based on yesterday's representations we are confident that Morgan Stanley are acting in good faith," Mr Mentha said.

The Arrium restructure is likely to feature in the coming election campaign given the likely poll date of July 2.

But Mr Mentha says that rather than being a distraction, the election campaign could work in Arrium's favour.

"I have no doubt that all that political parties are motivated to ensure that Arrium is better downed so for us we have to have our plan in place before July 2."

Reserve Bank alert on apartment glut

An oversupply of residential property developments has now become a key domestic risk to Australia's financial system according to the Reserve Bank.

While real estate investment has softened over the past six months, the Reserve Bank is worried about a "significant and geographically concentrated" growth in supply of new apartments in Sydney, Melbourne, Brisbane and Perth.

The RBA says with demand for apartments softening particularly in Brisbane and Perth, risks are rising that "settlement failures might increase" for investors who have bought from developers off-the-plan.

"A downturn in apartment markets could weaken the financial health of these developers," the RBA warns in its half yearly Financial Stability Review released this morning.

The RBA suggests an oversupply of apartments may weigh on prices and rents over the next few years and the option of selling up to service debt might be difficult.

"If that occurs, investors will need to service their mortgages while earning lower rental income," the RBA warns.

"Any households having difficulties in making repayments may not be able to resolve their situation easily by selling the property."

The RBA review also points concerns about a buildup in property investment by Chinese investors and how Australia could be exposed to a downturn if off the plan purchases turn sour.

"These apartments are popular with investors and foreign buyers and any concern over settlement risk and/or a slowdown in demand for Australian-located property by Chinese and other Asian residents could lead to difficulties," the Review warns.

In addition to residential property, the RBA is also concerned about financial exposure to the resources sector given the end of the mining investment boom.

While the RBA says the exposure of Australian banks to the mining sector is "small", it warns that foreign banks operating in Australia have a higher share of total lending to mining.

The RBA says despite household debt increasing, most households now have a buffer through mortgage offset facilities which would help in any shock.

Noting record low interest rates around the world, the RBA says Australia remains exposed to developments beyond the local horizon.

"A large global shock could be difficult for overseas policy makers to address which could have spillover effects on the Australian economy".

Search for Funke Kupper replacement at ASX to take 3 to 9 months; headhunter to be appointed within days

The executive search to replace Elmer Funke Kupper as chief executive of ASX Limited is expected to take three to nine months.

The board of the ASX chaired by Rick Holliday-Smith has been interviewing executive headhunters since Mr Funke Kupper's sudden resignation three weeks ago with an agency set to be appointed within days.

Mr Funke Kupper's exit last month in the face of bribery allegations while he was Tabcorp chief executive is understood to have derailed the succession planning which the ASX board had in place.

The ASX board is looking to restore stability to the stock exchange operator and the successful headhunter selected will be asked to find a chief executive mirroring Mr Funke Kupper's "superhuman" qualities.

While not ruling out international candidates, Mr Holliday-Smith is known to favour a local appointment as Mr Funke Kupper's successor given the focus on government and regulatory issues and little time for a learning curve.

Elmer Funke Kupper was appointed as ASX chief executive in 2011 after a global search by headhunter Russell Reynolds.

Mr Funke Kupper announced his resignation as ASX boss on March 21 after the Australian Federal Police launched an investigation into a $200,000 payment Tabcorp made to the family of Cambodian Prime Minister Hun Sen.

At the time, Mr Holliday-Smith signalled Mr Funke Kupper left to avoid damaging the reputation of ASX Limited.

"The ASX Board accepted that Elmer wanted to direct his full focus to the investigations which may be made into the Tabcorp matter - and not have them interfere with the important role of leading the ASX," Mr Holliday-Smith said in statement to the stock exchange.

Despite an ongoing AFP investigation, Mr Funke Kupper received the unusual support of ASIC chairman Greg Medraft who described the resignation of "unfortunate" and "a sad loss".

Source: ASX statement 21 March 2016

Jobless rate in surprise fall to 5.7 percent in March

Australia's official jobless rate fell to 5.7 percent in March, the lowest level since September 2013.

The ABS says 26,000 new job were created with 34,900 new part time roles.

The Australian dollar surged after the Thomson Reuters newsagency mistakenly reported 260,000 new jobs had been created.

Here's my runthrough of the figures from The World Today

IMF downgrades global growth once again

The International Monetary Fund has once again downgraded its forecasts for global economic growth.

It says growth has been "too slow for too" long and that the world has become more exposed to a range of negative risks.

The IMF now expects the global economy to grow by 3.2 percent in 2016 down from 3.4 percent.

Listen to my analysis from The World Today on the ABC.

Arrium - new administrator KordaMentha says "business as usual", holds out hope for Whyalla steelworks

Source: Federal Court of Australia

After less than a week in the job, the administrator originally appointed to the failed iron and steel company Arrium has been forced to quit.

The insolvency firm Grant Thornton was last night replaced by KordaMentha, which is perhaps best known for its administration of the airline Ansett fifteen years ago.

The coup came after enormous pressure from the "big four" banks and the Australian Workers Union who had threatened to use their numbers to to sack Grant Thornton at the first creditors meeting if they didn't go quietly.

Going back to the drawing board so soon is more uncertainty for Arrium workers especially for those with jobs on the line at the steelworks in Whyalla.

But KordaMentha partner Mark Mentha told me "business as usual" as he tries to stablise Arrium.

Source: Federal Court of Australia

Prized AAA rating at risk without budget repair, NAB warns

With the federal budget three weeks away, the Federal Government has been warned Australia's AAA credit rating could be at risk.

The National Australia Bank is the latest to warn that the slow path to budget repair is pushing the patience of the big three ratings agencies - Moody's, Standard & Poor's and Fitch.

They want to see fiscal restraint and evidence that the Budget will show fiscal restraint ahead of this year's election.

I spoke with the NAB's chief economist Alan Oster for the ABC's AM program.

Source: National Australia Bank 11 April 2016

ASIC boss says watchdog well placed to weed out bad banks, sidesteps Royal Commission heat

Amid growing calls for a Royal Commission, the corporate watchdog has vigorously defended its capability to investigate and prosecute unethical banking conduct.

ASIC chairman Greg Medcraft signalled a Royal Commission is unnecessary.

I spoke to Mr Medcraft in Sydney for The World Today.

Arrium administrator coup - Grant Thornton set to make way for Korda Mentha

The administrator of the failed steel company Arrium is on track to be replaced in a sudden and bloodless coup that could delay the firm's restructure.

The insolvency firm Grant Thornton - which was appointed less than a week ago - is set to be forced out after a deal between banks and unions.

Under the deal, Grant Thornton would be replaced by its competitor Korda Mentha which has been working with the Australian Workers Union in the leadup to Arrium's failure.

Korda Mentha is best known for a range of complex administrations including Ansett which collapsed in 2001.

The ABC understands Grant Thornton agreed to step down quietly rather than being sacked at the first creditors meeting amid threats that bank creditors and the AWU would vote as a block.

The unlikely partnership with the AWU comes after banks owed more than a billion dollars agitated behind the scenes for the appointment of their preferred administrator McGrathNicol, which will work with Korda Mentha on the Arrium administration.

The details of Grant Thornton's removal were being finalised at a Federal Court hearing this morning in Melbourne.

Grant Thornton said on Sunday they were cautiously confident that Arrium’s Whyalla steelworks could be saved and that the indebted business stood a chance of being restructured.

In a statement, Grant Thornton said it had “stabilised the business to ensure to can run as usual” and that they firmly believed the Whyalla works could continue operations.

More to come

Getting to the truth about bad banks - is a Royal Commission the only answer?

"The definition of insanity is doing the same thing over and over again, but expecting different results" : Albert Einstein

While there's a bit of conjecture over whether Albert Einstein actually uttered these words, the quote comes in handy when considering the many cases of unlawful and unethical behaviour levelled at Australia's big four banks.

Inquiry after inquiry, committee on to top of committee, enforceable undertakings, slapped wrists, tough talk from the corporate watchdog, solemn commitments on the importance of "culture" from banking bosses.

To regular people getting on with their lives and trusting banks to manage their money, mortgage and superannuation it all sounds like the same answer - or "non answer".

For most it adds up to the same result Albert Einstein is attributed with talking about - the expectation that whatever banking bosses say about the misdeeds that have come to light there's a high certainty there are more skeletons in the closet that bank spin machines are trying resolve internally.

So how to get the to unvarnished truth about the culture inside Australia's banks as scandals continue to mount with alarming frequency and could, as Bill Shorten suggests, a Royal Commission be the answer?

To date, despite the plethora of inquiries, there seems no stop to the bad news coming out of banks as evidenced just last week when Westpac was dragged into allegations surrounding the rigging of the bank bill swap rate or BBSW.

While ASIC uncovered the alleged Westpac behaviour and is taking the bank to court, most other scandals have only come to light through the courage of whistleblowers who have paid a high personal and professional price for coming forward.

Whistleblowers were critical in revealing unethical practices at the Commonwealth and National Australia Banks. And more recently, the chief medical officer at the CBA's insurance arm Comminsure Dr Benjamin Koh put his job on the line and was ultimately dismissed after raising allegations about the appalling treatment of clients and staff alike.

As we have seen in the Royal Commission into child sexual abuse, whistleblowers and victims have come forward with painful evidence and personal experiences that might have been difficult or unthinkable while the institutions themselves, regulators or police were controlling the high emotion inquiries.

So while Bill Shorten is of course a politician sniffing a chance of winning office, he knows the public sentiment has turned against the banks and that demands will only grow louder for any inquiry that has teeth.

The spin from federal government ministers that the corporate regulator ASIC is best placed to investigate rings hollow given the findings of a 2014 Senate inquiry that ASIC is a "timid, hestitant" regulator.

For Jeff Morris - the whistleblower who brought the CBA's financial planning scandal to light - a Royal Commission is the only solution to restore confidence in the banking sector.

"Eight years ago, when I saw what they (the CBA) were doing to some people in that financial planning area, I realised just how bad things had become in financial services," Mr Morris told AM.

"And I kind of thought: this is where we're heading. I thought for many years there needed to be a parliamentary inquiry to lead to a royal commission. And I've never lost hope in that."

Oxfam slams World Bank over multinational tax haven links

The global charity Oxfam has criticised the World Bank's private lending arm for financing multinationals who then channel funds through tax havens.

A report by Oxfam says 51 of 68 companies funded by the World Bank's International Finance Corporation in 2015 to finance projects in sub-Saharan Africa used the tax haven of Mauritius to hide wealth and to dodge tax.

Oxfam claims the use of tax havens by multinationals had "no apparent link" with their core businesses of building infrastructure and providing service in some of the world's poorest nations.

Listen to my interview with Oxfam Australia chief executive Dr Helen Szoke broadcast on The World Today 

The allegations from Oxfam come in the midst of a global crackdown on multinational tax evasion and the shady practices revealed in the Panama Papers by the law firm Mossack Fonseca.

Oxfam Australia's chief executive Dr Helen Szoke says the channelling of World Bank finance to tax havens is more evidence that the international tax system is broken.

""At a time when the Australian Government is also increasing its engagement with the private sector through the Australian aid program, the government's focus must be on responsible investment and sustainable development," Dr Szoke told The World Today.

"These companies could be cheating poor countries out of tax revenues that are needed to fight poverty and inequality.

"The World Bank Group should not risk funding companies that are dodging taxes in Sub-Saharan Africa and across the globe. It must put safeguards in place to ensure that its clients can prove they are paying their fair

share of tax."

The Oxfam report claims that over the past five years,  the International Finance Corporation has doubled its investments in companies that use tax havens from US$1.2 billion in 2010 to US$2.87 billion in 2015.

Dr Szoke said Mauritius is also a destination for the practice of "round-tripping" where a company shifts money offshore before returning it disguised as direct foreign investment.

Instead, Dr Szoke says the World Bank should be ensuring that its financing is used to fund infrastructure and health services to poor nations in sub-Saharan Africa.

"The region lacks money to provide enough skilled birth attendants, clean water or mosquito nets, for example, resulting in high rates of child mortality; one child in 12 dies before their fifth birthday."

The International Finance Corporation has dismissed the Oxfam report as "flawed".

Pressure ramps for Royal Commission into bad banking behaviour

Pressure is continuing to ramp up for a Royal Commission into unethical banking behaviour.

The Opposition Leader Bill Shorten wants the government to consider the option while some Coalition and Labor backbenchers think it's the only way of getting to the truth.

Liberal MP Warren Entsch says Australians have lost faith in the integrity of the banking system, accusing banks of "bastardry and blackmail".

Mr Entsch's comments follow similar calls from Nationals senator John Williams and Labor senator Sam Dastyari.

Listen to my report from The World Today broadcast on the ABC.

Bank of Queensland surprises customers with rate hike

Bank of Queensland cites tougher regulatory requirements for announcing a rate increase on owner-occupied and investor home loans from 15 April.

Listen to my report from The World Today on the ABC.

Older and casual workers in Aust more vulnerable in mass layoffs, warns OECD

Older workers and casual and part-timers are more likely to be laid off as Australia's manufacturing industry continues to shrink, according to a global report out this morning.

The warning comes from the Paris-based Organisation for Economic Cooperation and Development (OECD) which says older Australians struggle the most to find a new job which is usually much lower paid.

The OECD's call to improve services for laid off workers comes as the steel maker Arrium announced it was going into voluntary administration, putting the future of its Whyalla steel operations in further jeopardy.

Listen to my interview with the OECD's Christopher Prinz broadcast on AM

The author of the OECD's study into Australian layoffs, Christopher Prinz, told the ABC's AM program that better employment services were needed for laid off workers, in particular older ones.

"It's not only older people who are affected but what we do still continuously find is if it is older people who are laid off, they have a much harder time to find back into the labour market," Mr Prinz said.

"These are people who have had good jobs for a long time and all of a sudden, unprepared, they need to find a new job and that is not straight forward."

The OECD's report comes as local manufacturing remains under pressure, especially with the Australian dollar remaining well above 70 US cents despite official interest rates at the historic low of two percent.

The concerns also coincide with the demise of Australia's car industry as Holden, Ford and Toyota prepare to close local operations over the next two years.

"These are exactly the cases in which some policies are in place to help people who lose their jobs because of bigger restructurings and the big mass layoffs," Mr Prinz said.

"We are getting older and older the age from which you are considered like an older worker hasn't really changed but partly it is to do with the fact that there are people who have been out of the education system nevertheless for 25 years and therefore, of course, given how fast things develop, their skills might be outdated."

The OECD report says the current flashpoints in Australia include manufacturing and the forestry industry in Tasmania.

Mr Prinz told AM that laid off workers needed special services from government to unsure that are appropriately skilled for new roles.

"I think it's really about anticipating change, about preparing people for change, about up skilling people all the time not only once they have lost their jobs".

Westpac to "vigorously defend" rate rigging allegations; trader says actions "completely wrong"

Westpac has become the latest of big four banks to become embroiled in a financial scandal.

The corporate watchdog ASIC is taking Westpac to court alleging it rigged a key market interest rate over a two year period - another dent in the credibility of the banking sector.

The scandal confronting Westpac follows similar rigging allegations recently levelled at the ANZ while the Commonwealth Bank is in damage control over unethical behaviour at its insurance arm, CommInsure.

It sounds like financial jargon but the bank bill swap rate, or the BBSW, is the rate set in a five minute window every day that determines what banks charge to lend to each other.

For banks it can mean hundreds of millions or billions of dollars in profit. For regular people it sets benchmark rates on corporate loans, business loans, mortgages and credit cards.

Listen to my report from this morning's edition of AM

The corporate regulator ASIC alleges Westpac manipulated the BBSW for two years between April 2010 and June 2012.

In a statement of claim filed with the Federal Court ASIC accused Westpac of a pattern of behaviour that amounts to unconscionable, misleading and deceptive conduct.

Source: ASIC statement of claim 

Westpac's trading had the effect or likely effect of causing the 30 day BBSW to set at a rate which did not reflect genuine forces of supply and demand and of creating an artificial price.

ASIC interviewed around 50 Westpac staff and cites recorded telephone conversations illustrating the high stakes pressure on traders who allegedly push the limits, including this one from Colin Roden, Westpac's managing director of group treasury who is quoted as saying he "knew it was completely wrong":

Source: ASIC statement of claim

The Westpac allegations follow similar action ASIC is taking against the ANZ Bank over the alleged rigging of the bank bill swap rate.

The National Australia Bank and the Commonwealth Bank have been damaged in unrelated scandals involving unethical financial planning, while the CBA is reeling from claims of unethical behaviour at its insurance arm, CommInsure.

Westpac has responded cautiously and says it will vigorously defend itself against ASIC's rate rigging allegations.

Source: Westpac statement 

Nationals Senator John Williams has been crusading against the big banks since his election in 2008 and he says a royal commission into banking bad behaviour is now critical.

"When I was a young fellow back in the 70s, when I first started work, the bank manager was probably the most trusted person in your town and community. I don't think that's the case today," Senator Williams told the ABC's AM program.

"As time goes by the case builds stronger and stronger in my opinion for a royal commission into the finance sector.

"My concern is the culture is simply profit, profit, profit and to hell with the customers".

APRA boss says no room for complacency about new GFC

The chairman of the Australian Prudential Regulation Authority has warned Australia should not be complacent about its ability to dodge another global financial crisis.

Wayne Byres told a conference in Sydney that after the build-up to the Wall Street meltdown in 2008, the regulator is now more active and prepared to intervene.

Listen to my report from The World Today

Mr Byers, who was not APRA chairman until 2014, had a sombre reality check about his mission to maintain a resilient banking system in Australia as the fallout from the GFC continues to resonate around the world.

"We shouldn't kid ourselves that the worst of the problems elsewhere couldn't occur here or that there hasn't been a healthy dose of luck involved," Mr Byres said.

"We can't be complacent. After 25 years of economic expansion, it would be a surprise if the banking system wasn't in good shape.

"But put simply, when adversity arrives - and at some point it will - we want the banking system to help alleviate rather than exacerbate problems. Ideally it’s a shock absorber not an amplifier."

Mr Byres also responded to last night's 7.30 program which revealed secret APRA documents from 2007 show that lax lending standards by banks could have could a serious question or a banking crisis.

In response to questions from the ABC, Mr Byres signalled the regulator had ramped up its supervision of bank lending standards between 2007 and now saying some of the issues were "eerily similar".

"I don't think the issues were all that different but broadly speaking the issues that were on the radar screen then - buoyant housing lending, commercial property lending standards - are all things that are on our agenda again.

"This time around we've been a bit more active and interventionist maybe than we were last time but I don't think the issues have particularly changed that much."

The former Treasury secretary, now chairman of the National Australia Bank, Ken Henry agreed Australia remained exposed to a new global shock.

And he revealed that in scenario planning in the lead up to the Wall Street collapse, the potential meltdown of the global financial system was not seen as a real possibility and that being locked out of financial markets was the main concern.

"We asked ourselves the question -  in what circumstances could that worry cause a real problem for Australia. And we came up with one and we thought it was so left field that there was no point worrying about it," Mr Henry told the conference.

"And you know what it was? A meltdown of the global financial system.  This remains a risk for Australia and our best protection is a strong public sector balance sheet, that's our best protection."

Lifestyle expectations exceed economic reality, MLC survey shows

With the government likely to make tough decisions on superannuation in next month's Budget, more Australians are worried they won't be able to pass on today's lifestyles to their children.

A survey by the National Australia Bank's wealth arm MLC shows almost two-thirds of Australian believe the next generation will never be able to buy their own homes.

Around half of the two thousand people surveyed don't think they can sustain their own standard of living in a decade's time and a fifth are relying on a family inheritance to pay off their mortgage.

Listen to my report from "The World Today" on the ABC

MLC chief executive Andrew Hagger says expectations that future generations will do better than today's taxpayers is fast fading.

"We know that maintaining our lifestyle and financial security are our top priorities for Australians. However, Australians are telling us they are worried," Mr Hagger said.

"There has always been the expectation that future generations will do better than us. Yet these findings paint a different picture. It's concerning to see so many people worried about how their children will afford their own homes and live a comfortable lifestyle."

The MLC survey shows:

* two-thirds of Australian parents don't believe their children won't achieve the same lifestyles as them

* almost 1 in 5 Australians are relying on the family inheritance to pay off their mortgage

* more than a third of Australians believe they will be relying on the Australian government during retirement

MLC's general manager of corporate super Lara Bourguignon says the research indicates the lifestyles of the baby boomer generation are no longer sustainable.

"The cost of living and the mortgage absolutely rule our financial lives," Ms Bouguignon told the ABC's AM program.

"Many worry that today's young people will struggle to build the same kind of life that their parents generation has enjoyed."

Ms Bouguignon said that without structural change and lower expectations, standards of living could slide over time.

"Twenty years of economic prosperity has been led by the mining boom. Australians are aware the mining boom has tapered out and they're not yet confident where that next wave of growth is coming from."

Ms Bouguignon says the federal government needs to confront hard decisions in the May 3 budget and that the funding of retirement needs to be a national priority.

Cash-strapped mining minnow throws desperate switch to Hollywood

It's a sign of the times as the once in a century mining investment boom rapidly fades.

Cash-strapped resource companies are having to diversify to survive and some are taking unusual and perhaps desperate measures to stay in business.

The West Australian copper, platinum and gold explorer Artemis Resources has literally thrown the switch to Hollywood and will bankroll a B-grade action movie, "Tango Down" which is set to be released next year.

Listen to my report and interview with Ed Mead broadcast on "The World Today"

The $8 million investment from Artemis comes as the resources sector is being crunched  by record low commodity prices that are also damaging much bigger mining and energy players like BHP Billiton, Rio Tinto, Woodside and Santos.

Artemis chief executive Ed Mead says the investment is all about providing a glimmer of hope to shareholders who have seen the value of their investments evaporate to 0.0001 cents a share.

"The opportunity present by Tango Down aligns with our commitment to deliver shareholder returns," Mr Mead told investors describing it as "an exciting investment opportunity".

Despite the bankrolling "Tango Downs", Mr Mead signaled it was more of a one-off sideshow rather than Artemis shelving its mining interests all together.

"We will continue to maintain our focus on our prospective gold and base metals projects in the West Pilbara region of Western Australia."

If "Tango Down" is successful. Artemis shareholders could benefit from 20 percent of all profits.

Artemis, which is current valued at just $3.6 million, is betting the film will gather a following given the cult status of writer and lead actor James C. Burns who is famous for the video games "Call of Duty Black Ops" 1 and 2.

But changing with the times is not new for struggling mining companies.

During the "dotcom" boom back at the turn of the century, small operators used their ASX listings to raise money for fledgling technology companies many of which disappeared when the dotcom flash turned to ash.

Seven West warns media reforms could erode local content; wants licence fees axed

While the Prime Minister works to sell his proposed tax reforms to state and territory leaders other government business is continuing behind the scenes.

This morning, the Senate inquiry into proposed changes to Australia's media laws has been hearing from the Seven West media empire which has described the reforms as "dangerous" and "piecemeal".

Chief executive Tim Worner wants the government to abolish commercial broadcast licence fees so broadcasters can better compete with the likes of Netflix, Stan, Facebook and Google.

Listen to my report broadcast on "The World Today" 

Fed to "proceed cautiously" on US rate rises; Janet Yellen dovish amid global jitters

The US Federal Reserve appears unlikely to raise interest rates in the coming months after it's chair Janet Yellen said the world's biggest central bank would "proceed cautiously".

The increasingly dovish language from Dr Yellen comes amid concerns that the recovering US economy remains exposed to the global economic slowdown and potential fallout from a hard economic landing in China.

The Fed recently signaled that rate rises in 2016 had been scaled back from four to two quarter point increases as inflation remains stubbornly low at 1.7 percent and on a slow track to the target of two percent.

"Developments abroad imply that meeting our objectives for employment and inflation will likely require a somewhat lower path for the federal funds rate than was anticipated in December," Dr Yellen told the Economic Club in New York.

"Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy."

The US central bank raised rates from their near zero levels in December for the first time in almost a decade, signalling the emergency from the Wall Street meltdown in 2008 was over.

When the Fed kept rates on hold earlier this month at between 0.25 and 0.5 percent, it pointed to global market volatility, record low oil prices and concerns about China's economy.

But Dr Yellen still has an "expectation of fading headwinds" that will keep the Fed on track for "gradual increases" as appropriate given that the US economy has proven to be"remarkably resilient."

"The overall fallout for the US economy from global market developments since the start of the year will most likely be limited," Dr Yellen said.

Growing expectations that US rates will remain on hold for the next few months saw Wall Street stocks rally with the Dow Jones Industrial Average closing 0.56 percent higher.

The US currency fell and as a result the Australian dollar surged by more than one percent to 76.3 US cents.

Dr Yellen's caution reins in comments from other FOMC (Federal Open Market Committee) members that another rate hike was likely in April or June.

Blackrock fixed income chief Jeff Rosenberg said Dr Yellen's comments were unexpectedly dovish and pushed out rate rise forecasts.

"We're pricing out expectations and reducing our probability of expectations for when that next interest rate hike is going to come if it ever does come," Mr Rosenberg told Bloomberg.

Dr Yellen's dovishess comes as major central banks around the world - including the European Central Bank and the Bank of Japan - pursue a negative interest rates strategy.