The events in Sydney over the weekend made for a very sombre start to the week, with both the New South Wales and Australian governments continuing to investigate the shocking random attacks in Bondi and a declared terrorist incident after the stabbing of a Bishop in western Sydney.
Elsewhere, it was a big week for the Defence sector, with Deputy PM and Defence Minister Richard Marles making some significant announcements about the future of the ADF.
Before we dive into this week’s wrap, let’s take a look at what made headlines:
1. Judge in Lehrmann defamation trial finds in favour of Ten but dismisses political cover-up.
2. Dubai flooded by historic torrential rain, standing thousands of travellers.
3. Federal Reserve chairman Jerome Powell dashes rate cut hopes.
4. Unemployment inches up to 3.8 percent as hopes of a rate cut fade.
5. R.M. Williams unveils a new $8 million production line specifically to cater for increased production of its women’s range of boots.
6. Channel 7 boss James Warburton departs two months early with Jeff Howard taking up the reigns.
7. India Prime Minister Modi looks for historic third term as Indians vote in biggest-ever election.
8. The Australian Medical Association’s latest hospital report cards says hospitals are at breaking point.
Politics
Marles announces Defence budget reprioritisation
The Defence budget will rise by $50 billion over the next decade as the government seeks to avoid regional conflict with China. The new investment program will deliver underwater drones, long-range missiles and enhanced air defences for the Australian Defence Force, while upgrading key infrastructure and facilities in the north.
The funding boost will see the Defence budget lift to 2.4 per cent of GDP by 2034, but the government has also reallocated spending from other areas to focus on its new priorities. $22.5bn over the next four years and $72.8bn over the next decade will be cut from existing Defence programs.
This includes ditching plans to acquire new F-35 fighter jets, scrapping the Navy’s new large support vessels, and reprioritising $1.4bn in upgrades to ageing Defence facilities in Canberra to help fund $14bn-$18bn of enhancements to northern defence bases in Darwin, far north Queensland, Tindal and the Cocos Islands.
Defence Minister Richard Marles also unveiled the new National Defence Strategy, which would see Australia adopt a “strategy of denial” to prevent regional conflicts before they began.
China has accused the Australian Government of holding a “Cold War mentality” in its military build-up and denied playing a role in the destabilisation of the region.
Shadow Defence Minister Andrew Hastie slammed the government’s “$80bn of cuts and delays” and said the plan was too slow to respond to evolving threats currently facing Australia and its strategic partners.
Woolworths, Coles bosses face Senate hearing
The CEOs of Woolworths and Coles faced a barrage of questions from a fairly hostile group of Senators when they appeared before the Federal Senate Inquiry into Supermarket Prices.
With grocery prices on the rise and so many Australians doing it tough, the Inquiry was established by the Federal Parliament to scrutinise the practices of the supermarket giants and their impact on consumers. They are particularly interested in allegations of price gauging, staff underpayment and the use of technology and automation.
Perhaps the most shocking part of this week’s public hearings was Woolworths boss Brad Banducci being threatened with contempt, and possible jail, for failing to answer questions during his two-hour appearance. Greens Senator Nick McKim and the Woolworths CEO had a fiery exchange that hit breaking point when Mr Banducci finally said he did not know what Woolworths’ return on equity was during the last financial year.
Coles CEO Leah Weckert must have been watching this exchange because when she appeared later that day, she was able to advise the committee with an answer of 31 per cent when asked about Coles’ return on equity.
The Inquiry will continue with more hearings around the country and testimony from other stakeholders like farmers and small business suppliers. The committee will then present a series of recommendations to the government to help address the issue of rising grocery prices due to the practices of the supermarket giants.
One of the recommendations will likely be for the introduction of a mandatory code of conduct that outlines engagement between the supermarkets and suppliers, and imposes severe financial penalties for any breach.
Woolworths is understood to support a compulsory code but believes it should also apply to all companies that sell “meaningful” amounts of groceries, such as Amazon, Bunnings and Chemist Warehouse.
Money starts to flow from Government’s ‘Future Made in Australia’ fund
Prime Minister Albanese’s Future Made in Australia fund was announced with much fanfare last week, but it’s copped its fair share of criticism this week as prominent economists and experts such as Productivity Commission Chair Danielle Wood ponder its effect on inflation and productivity.
And as the Treasurer appeared to be walking back some of the PM’s bold statements on the benefits of government intervention, saying the aim of the policy was to “incentivise the private sector, not replace it”, the PM joined with the Queensland Premier in – surprise, surprise – regional Queensland to announce the first major funding recipient.
Australian firm Alpha HPA will receive a $400m boost from the federal government to develop a high-purity alumina processing facility in Gladstone. The project will process critical minerals used in LED lighting, semiconductors and lithium-ion batteries.
With less than a month before the federal budget, Treasurer Chalmers was in Washington DC this week, pitching the Future Made in Australia policy as Australia’s ticket to global economic success.
He published an opinion piece that bristled at suggestions Future Made in Australia was a poorly disguised attempt at protectionism, and said the government wanted “to build competitiveness and productivity, not underwrite profits.”
The policy will be a central plank of the May budget, and a core election platform for the Albanese Government. It also handily allows the PM to splash lots of cash in regional communities (marginal seats) across Australia over the coming 12 months.
Queensland
We think we could have filled a whole newsletter with Queensland politics this week, but here’s our attempt at a quick wrap of a very consequential sitting week.
Firstly, the Senate committee examining Australia’s preparedness to host the Olympic Games held a fiery hearing in Brisbane on Monday, with Coalition senators on the committee saying the Queensland Government had failed to demonstrate any progress on planning for the Games.
Former Mayor Graham Quirk, who led a 60-day review of Games venue planning, said he was ‘blindsided’ by the Premier’s announcement on release of the review that the government would develop the Queensland Sports and Athletics Centre – despite the review recommending against that option.
State Development DG Graham Fraine couldn’t recall who had ordered the department start looking into the QSAC option, but confirmed those instructions had been given prior to Mr Quirk handing down his review last month.
Meanwhile, a Queensland Parliament committee set up by the government to look into the youth crime crisis was sensationally disbanded this week after it failed to agree on the inquiry’s recommendations.
The move meant the draft report was tabled in Parliament on Thursday, without having being finalised and endorsed by the committee as is the usual process. Among the draft recommendations: a push to review ‘detention as a last resort’ sentencing laws (a key plank of the LNP’s policy platform) and a call from Labor committee members to gag the media from reporting on youth crime issues.
Lastly, the LNP’s Shadow Environment Minister Sam O’Connor announced in Parliament this week the LNP would match the government’s new 75 per cent emissions reduction target by 2035 – killing off a contentious issue between the major parties ahead of the October poll.
O’Connor said the announcement would give certainty to industry, and help Queensland capitalise on the ‘enormous global economic opportunities’ available in the transition to a clean economy.
Global
Trump becomes first President to face a criminal trial
Former President and presumptive Republican Presidential nominee Donald Trump appeared in a New York court this week as his hush-money trial got underway, the first time a current or former US President has faced a criminal trial.
He is charged with falsifying business records before his election in 2016 to hide a payment to former porn star Stormy Daniels and has pleaded not guilty.
More than half of the potential jurors self-excluded themselves on the basis they would have difficulties remaining impartial, suggesting Trump’s defence team may struggle to find a sympathetic jury for the historic trial.
Trump has also been warned by the judge for ‘muttering and gesturing’ during the jury selection process, which has been running all week. Overnight, the full jury was finally seated, after two that had been earlier selected were dismissed, with the court yet to select the six alternates.
The judge has predicted the trial will run for about six weeks. Both Democrats and Republicans are watching closely, with the result to have huge potential ramifications in this year’s Presidential campaign.
Iran attacks Israel
The Israel-Hamas conflict escalated this weekend when Iran launched a record 170 drones at Israel. Israeli Air Force jets shot down dozens of them, and U.S. aircraft operating from bases in Saudi Arabia and Jordan shot down between 70 and 80 of the drones.
This unprecedented attack marked the first time Iran directly attacked Israel after almost a half-century of being archenemies. It was also the single largest drone attack ever carried out by any country.
The drone attacks have certainly escalated tensions and could potentially lead to a larger regional conflict in the Middle East. The international community has been closely monitoring the situation and the UN Security Council and G7 leaders are likely to meet to discuss the escalating conflict.
Singapore PM to step down
Singapore’s long-serving Prime Minister Lee Hsien Loong has announced that he will step down on 15 May. He has served as the Prime Minister and head of the People’s Action Party (PAP) since August 2004. As the eldest son of Singapore’s first Prime Minister who built the resource-poor city-state into one of the world’s richest nations, Lee is part of a Singapore political dynasty.
During Lee Hsien Loong’s tenure, he led Singapore through several crises and critical changes. Under his leadership, Singapore’s GDP grew from S$194 billion (US$144 billion) in 2004 to more than S$600 billion last year. His contributions to the nation’s economic growth and sophistication have been significant.
Australia and Singapore share a close relationship which is underpinned by the Singapore-Australia Free Trade Agreement (SAFTA). This agreement is the central pillar of the economic relationship between the two countries. While SAFTA first came into effect in 2003, it has undergone several amendments over the years, including when we worked for Australia’s Trade Minister in 2017.
In 2017, then Trade Minister Steven Ciobo worked closely with his Singaporean counterpart to secure the amended SAFTA which delivered big wins for Australia’s services industries, particularly in the areas of education, legal, financial and other professional service providers. It also reduced unnecessary red tape for Australian exporters.
Sport and Pop Culture
No, you haven’t heard the last about Taylor Swift
Taylor Swift’s 11th album The Tortured Poets Department (TTPD) was released this afternoon (so you can imagine what we’ve been listening to on repeat since 2pm). She announced TTPD at the Grammys back in early February so us Swifties have been impatiently waiting for today. With 16 songs lasting 65-minutes, she is sure to break even more records with this new album.
TTPD is believed to be written about her former fiancé Joe Alwyn with the six-year relationship ending in early 2023. Even the title of the album is said to be in reference to Joe Alwyn and a group chat he shared with his friends.
Her last album Midnights was released just 18 months ago, and it topped global charts, like most of her albums. TTPD is expected to be even more successful as Swift rides high on the phenomenon that is The Eras Tour. Her 152-date concert is the most successful tour in history and has elevated her to billionaire status.
Our verdict: TTPD is a masterpiece. WOW!
Formula One returns to China for the first time in five years
The global juggernaut that is Formula One rolls into Shanghai this weekend for the first time since 2019, after years of draconian pandemic restrictions prevented the return of the championship race.
It’s a big weekend for Zhou Guanyu, China’s first ever F1 race driver, who will make his home race debut. The young driver, who races for Kick Sauber, will receive the celebrity treatment – despite having yet to achieve great success in the sport.
Australian veteran Daniel Ricciardo, who has had a shocking start to the season, is on his last legs at junior Red Bull team Visa Cash App RB and will hope a new chassis is the circuit-breaker he needs to retain his drive.
The last of the Australian viewing hours-friendly races for a long while, the Grand Prix gets underway 5pm AEST on Sunday.
Coachella 2024
The biggest names in music descended upon the desert this week for the 23rd Coachella Valley Music and Arts Festival. The event, held just outside Palm Springs California, features musical artists from many genres of music, including rock, pop, indie, hip hop and electronic dance music, as well as art installations and sculptures.
This year’s headliners for the famous festival are Lana Del Rey, Tyler, the Creator, and Doja Cat. Nineties superstars No Doubt also performed together for the first time since 2015.
There were also countless celebrities in attendance to see their favourite music stars perform. Crowds reportedly went wild when Taylor Swift was spotted with NFL boyfriend Travis Kelce dancing and singing in the general crowd area. Close-by was Justin Bieber and wife Haylee who are regular Coachella attendees.
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