End in sight for unpaid NAB customers

The National Australia Bank says work on restoring customer accounts should be complete by tomorrow.

This afternoon, the bank said work would continue into the night to rectify accounts after a corrupt computer file last Wednesday night left people without wages and payments unprocessed.

NAB says while the glitch that caused payments and transactions to be delayed has now been fixed, additional work on around 19,000 accounts where duplicate or multiple transactions have occurred still needs to be completed and will be done so overnight.

Spokesman George Wright says outstanding transactions are being processed in chronological order.

"A person might have had a payment coming in on Wednesday and there might have been something going out on Thursday," he said.

"So you can't really say it's fixed for this number of customers, it's not that number. But we're up to Friday, so we're working through Friday."

In some cases there have been multiple debits and credits, but the bank says it is aware of the problem and it will be fixed as soon as possible.

Mr Wright says customers who have been charged fees or interest because of the glitch will be reimbursed.

"For NAB customers who may have incurred a fee or interest charge from the bank as a result of these delays, we're putting in a process to identify that and rectify it and refund people," he said.

"And anyone who might have incurred a charge from another institution as a result of these delays, we would ask them to contact us. We don't want people to be out of pocket and we'll work with them to fix that up."

Consumer group Choice says the payments system used by the major banks needs to be scrutinised in the wake of the NAB incident.

Choice spokesman Christopher Zinn says the delays have dragged on for far too long and highlight the vulnerability of the system.

"If this really was just a corrupted file which has caused this much damage, this much distress, we think it's a good time to take a long, hard look at the payments system and see if it really is robust enough and efficient enough for what is something that is essential to our daily lives," he said.

Mr Zinn says the current system is preventing new players from entering the market.

"We've been in talks with those who would seek to enter the banking sector in Australia, with new, competitive and innovative products who feel the structure of the payments system, some of its archaic nature, actually makes it impossible for them.

"We think that is something which the regulators, such as the Reserve Bank and the Federal Government, need to look at."

Source http://www.abc.net.au/news/stories/2010/11/29/3079719.htm?section=justin

ACC drops Paul Hogan tax investigation

THE Australian Crime Commission has revealed it will not lay charges against actor Paul Hogan and his artistic collaborator John "Strop" Cornell.

After a five-year investigation, the ACC today took the extraordinary step of issuing a press release saying it was no longer pursuing the pair over their offshore tax arrangements put in place following the success of the Crocodile Dundee movies.

"This decision has been made following a careful process, including obtaining high-level legal advice on some issues," the crime commission said.

Hogan and Cornell have been targets of the nation's $300 million Wickenby tax probe into offshore structures. They have always maintained their innocence and denied any wrongdoing.

Earlier this year, the Crocodile Dundee star was temporarily banned from leaving Australia at the request of the Australian Taxation Office.

The two-week standoff ended on September 3 and the 70-year-old was allowed to return to Los Angeles where he lives with his wife Linda Kozlowski and their son Chance.

It is understood the ATO will not be dropping its probe into Mr Hogan's affairs. An ATO spokesman declined to comment on the case on Tuesday.

In its statement issued today, the crime commission also noted the number of legal challenges Hogan and Cornell had made in relation to the investigation.

"The delay in resolving this long-running investigation hinges on the international complexity of the structures put in place by those who are the subject of the investigation and a clear strategy by those being investigated to legally challenge the ACC's attempt to establish the facts in the case," it said.

The decision was welcomed by Robinson Legal's Andrew Robinson who released a statement vindicating the innocence of his clients.

"After nearly six years of massively costly investigations during which our clients have been routinely branded in the local and international press as 'tax cheats' and 'tax criminals', the news that the ACC has acknowledged that it does not have the basis to continue with a criminal investigation is of immense relief to them," Mr Robinson said today. "It vindicates the position they have taken since the start of this investigation."

"Unfortunately, we have not been able to contact Paul Hogan to give him the news but John Cornell's reaction was: 'that speck in the sky is my hat and I look forward to sampling some of Strop's patented hangover cure tomorrow morning'."

Source http://www.theaustralian.com.au/news/acc-drops-paul-hogan-tax-investigation/story-e6frg6n6-1225959464455

New South Wales Receives Bids for Electricity Assets

The government of New South Wales, Australia’s most-populous state, has started evaluating bids for the electricity assets it put up for sale and plans to complete the review by the end of the year.

Submissions closed at 3 p.m. Sydney time, the state government said in an e-mailed statement, declining to identify any potential buyers. AGL Energy Ltd. said today it had made an offer, while Origin Energy Ltd. has previously said it planned to bid.

The sale, which includes the retail businesses of EnergyAustralia, Country Energy and Integral Energy, is the “last available opportunity to obtain a significant retail and generation presence in Australia’s largest electricity market,” state Treasurer Eric Roozendaal said in the statement.

New South Wales may raise A$3.5 billion ($3.4 billion) selling the retail assets, David Leitch, an analyst at UBS AG in Sydney, has estimated. The state is also offering development sites for new power plants and contracting the right to sell electricity produced by state-owned generators.

Australian regulators are scheduled to announce Nov. 25 whether purchases of New South Wales power assets by AGL and Origin would raise competition concerns. The Australian Competition and Consumer Commission had previously expected to report its findings on Oct. 28.

Origin spokesman Tim Scott, TRUenergy Holdings Pty spokesman Carl Kitchen and International Power Plc spokesman Trevor Rowe declined to comment on whether the companies had bid.

Competition, Funds

New South Wales Premier Kristina Keneally said Nov. 3 that the plan to sell the assets by the end of the year remains on schedule. The government has said it wants to spur competition in the electricity market, reduce the need for state investment in power generation and strengthen its finances.

Completion of the sale is expected by early 2011, state Auditor-General Peter Achterstraat said in a report earlier this month. He cited “significant uncertainty” surrounding the value of the assets because of the unknown impact of a potential carbon pollution reduction plan in Australia.

The effort to sell the government assets began about 12 years ago, the auditor-general’s report said.

AGL and Origin may spend more than A$5 billion combined, Leitch of UBS said this month. Origin may buy EnergyAustralia and AGL may get Country Energy, Leitch said. TRUenergy, CLP Holdings Ltd.’s Australian unit, was evaluating a bid, CLP Chief Executive Officer Andrew Brandler said Sept. 28.

The government of New South Wales said last month that it intends to keep ownership of the Cobbora coal mine to supply state-owned power stations with fuel.

Source http://www.businessweek.com/news/2010-11-15/new-south-wales-receives-bids-for-electricity-assets.html

Deaths in Australia at record low

Australia's death rate has hit a record low, as the nation older citizens are growing in number and living longer.

There were 140,800 deaths officially recorded Australia-wide during 2009, according to figures released by the Australian Bureau of Statistics (ABS).

It was a real decline of about 3,200 deaths from 2008, when 143,900 Australians died.

The figure also marked a new low in deaths measured against the population, continuing a declining trend which has unfolded over the past few decades.

In 1989, there were 9.1 deaths per thousand Australians, and in 2009 this figure hit a record low of 5.7.

"It's not just more younger Australians who are surviving through to older ages, those people who get through to age 50 are increasingly likely to live longer," demographer and Professor of Geography Graeme Hugo said in response to the figures released on Wednesday.

"Since 1970 we've added nearly eight years of extra life to an Australian aged 50 ... that's an incredible increase in life expectancy, a remarkable change in a generation when you think about it."

Prof Hugo, from the University of Adelaide, attributes the change to medical breakthroughs that now keep stroke, heart attack and cancer patients alive, along with improving treatments across the board.

Smoking rates were in decline while Australians now enjoyed safer workplaces and roads, and a blurring of once traditional male and female roles was allowing men to catch up to usually longer-lived women.

The ABS figures show over the past two decades, life expectancy increased six years for men (to just over 79 years) and more than four years for women (to almost 84 years).

Prof Hugo said there was room for more improvement as other countries had lower rates of cancer, heart attack and road crash deaths, but there were also emerging challenges.

"Obesity is much higher than it was in previous generations and it could compromise the continued year-by-year improvement in life expectancy," Prof Hugo said.

The ABS figures also show more men than women died in 2009, with 72,300 male deaths compared to 68,400 females.

The nation's infant mortality rate increased slightly, from 4.1 deaths per thousand births in 2008 to 4.3 last year.

Prof Hugo also said "closing the gap" between indigenous and non-indigenous health was also a must, and it would further boost the nation's average life span.

There were 2,400 indigenous deaths recorded last year, accounting for 1.7 per cent of all deaths.

The NT had the nation's highest death rate, at 7.9 deaths per thousand people, while the ACT came in with the lowest at 5.4 deaths.

While total deaths were down last year, the change appears to occur on a scale not immediately felt by the funeral industry.

"I've been around every state in the last few months and none of the funeral directors I've spoken to say `gee, we're down`," Australian Funeral Directors Association president John Scott said.

"(But) there is no doubt people are certainly living longer ... I know in our area (Kyneton, Victoria) we've got some very old people who are well into their hundreds."

Source http://news.smh.com.au/breaking-news-national/deaths-in-australia-at-record-low-20101110-17nhj.html

Australian Services Sector Improved In October

The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI) rose in October by 5.1 points to a reading of 50.7. This marks only the second monthly expansion in activity for the Australian services sector so far this year.

A reading above 50 indicates an expansion in activity levels, the index last breaching this level back in April. Driving the rise in the index in October were increases in sales and new orders, which reflects improving activity levels in both the retail and wholesale sub-sectors in recent months.

Australian Industry Group chief executive Heather Ridout notes the sales component of the Australian PSI increased by 9.0 points in October to a reading of 55.3. Ridout suggests the improvement in activity levels in the retail and wholesale sub-sectors is a positive sign for consumer spending leading into the December quarter.

The Commonwealth Bank notes most sub-sectors improved in October, the strongest being health and community services, accommodation, cafes and restaurants. Three sub-sectors delivered patchy results, these being the communication, finance and insurance and property and business sub-sectors. The transport and storage sector was the only sub-sector to record weaker conditions in October.

New orders have also returned to a reading above 50, rising 4.6 points in October to a reading of 52.1. Employment continues to contract as evidenced by a reading of 49.4, though Ridout notes the pace of contraction slowed significantly in the month.

Firms in the services sector continue to run down inventories, as the stocks component of the Australian PSI registered a reading of 46.9 in October. This is the fifth successive month of a below 50 reading for this measure.

Supplier deliveries also continue to contract and the below 50 reading in October was the ninth such reading in the past 10 months. Input price growth remains modest when compared to levels prior to the Global Financial Crisis, this measure falling 4.8 points for the month to a 60.1 reading.

On the plus side average selling prices are picking up, Ridout noting this measure registered a reading of 50.6 for October. This compares to a reading of 47.5 in September. Capacity utilisation also improved and came in at 76.1% for October, up from 74.1% in the previous month.

According to Commonwealth Bank the lift in the Australian PSI is encouraging as it implies Australian consumers may be starting to turn more positive. This should see less emphasis on household balance sheet repair going forward.

The bank also suggests the strong Australian jobs market, solid wages and salaries growth and general improvement in household wealth levels from rising share and housing prices are likely to contribute to an improvement in Australian consumer spending in the months ahead.

Source http://money.ninemsn.com.au/article.aspx?id=8117810

Westfield Group eyes $3.5bn raising, asset split

WESTFIELD will tomorrow unveil a split of its Australian retail assets into a separate company to be called Westfield Retail.

The spin-off will raise up to $3.5 billion through the issue of new shares and is expected to have $9 billion of assets.

The deal is aimed at unleashing value for the company to give more flexibility for further expansion.

The equity raising will be led by Morgan Stanley, Citigroup and Credit Suisse.

The company rang other brokers this morning to offer a role in the deal, which explains why word leaked out into the market.

Morgan Stanley is advising the company on the deal, which will be by way of distribution to shareholders of 50 per cent of the Australian assets with the parent company to own the other 50 per cent.

The market had been abuzz with speculation that Westfield was about to make a “major” announcement tomorrow.

This afternoon, Westfield responded to "media speculations" and requested a trading halt, until the market opened tomorrow.

In its ASX statement, Westfield said it requested a trading halt in respect of its shares pursuant to Listing Rule 17.1, pending a further announcement about a possible transaction.

Sources said that Westfield would be doing the raising for acquisitions and to fund its development program.

They suggested that Westfield was considering buying some of the assets expected to come to the market from the $4.5bn Centro portfolio, as it ramps up its Australian operation.

Throughout the global financial crisis, Westfield’s Australian operation held up and helped offset the sluggishness of US retail sales.

Westfield, the world's largest shopping centre owner, has 119 centres, of which 44 centres are located in Australia, valued at $22bn. The rest is located mostly in the US, Britain and New Zealand.

Last week, Westfield opened the first stage of its $1.2bn Sydney Westfield project.

Speculation continues in the market that half of the centre could be for sale.

These sources said that part of the raising could be to fund its huge pipeline of development.

The group currently has projects underway, costing $4.4bn.

Westfield has a deep development pipeline, particularly in Australia, where it is currently developing two projects.

The group last came to the market in February last year when it raised $2.9bn at $10.50 per unit. In that offer, the units were offered at a 13 per cent discount.

At June 30, the group had assets under management of $61.7bn, and gearing ratio of 37.4 per cent. It had available liquidity of $7.3bn.

Source http://www.theaustralian.com.au/business/property/westfield-group-eyes-35bn-raising-split-of-australian-assets/story-e6frg9gx-1225946809564