Australia news live updates: Penny Wong to head to Solomon Islands; generators under the pump as big chill rolls on

Penny Wong to head to Solomon Islands

Daniel Hurst

Daniel Hurst

The foreign affairs minister, Penny Wong, is heading to Solomon Islands this week – the first trip to the country since it signed a security deal with China.

It was announced yesterday that Wong would be heading to New Zealand for meetings with her counterpart, Nanaia Mahuta, tomorrow. And Wong has just announced that she will then head to Solomon Islands on Friday:

On Friday, I will visit Solomon Islands, where I will meet Prime Minister the Hon Manasseh Sogavare and a number of his Cabinet ministers. I also look forward to engaging with the local community, including women leaders.

We are committed to deepening our cooperation with Solomon Islands, as we work together to face shared challenges and achieve our shared goals, including on climate change.

I look forward to discussing the ways we can continue to make progress on pandemic recovery, economic development and labour mobility priorities, and addressing our shared security interests.

This will be Wong’s third trip to the Pacific since being sworn in last month. Wong also said her statement that New Zealand was “an indispensable partner in our ambitions for a stronger Pacific family”.

Wong said she and Mahuta would “consider ways we can work together, to make the most of the new energy and resources the Australian Government is bringing to the Pacific”.

Wong said there were “new possibilities for collaboration with New Zealand in support of regional security and on climate change” and she looked forward to “drawing on New Zealand’s experiences as Australia develops a First Nations foreign policy”

Penny Wong is Solomon Islands bound.
Penny Wong is Solomon Islands bound. Photograph: Lukas Coch/AAP

Updated at 22.09 EDT

Bowen says energy system “under pressure”

Next up is energy minister Chris Bowen, who says he is so far pleased that the country has avoided blackouts, but says the system is under “pressure” and that the government supports Aemo to manage the situation:

I’m very pleased that we have been able to avoid so far any significant load shedding events or of course at blackouts I am also pleased that Aemo advises me that that will likely continue to be the case that we will be able to avoid any load shedding events or any blackouts. Of course that is subjected to any unexpected outages in the system.

As I’ve said repeatedly this week the system is under pressure. We have administered pricing in Queensland, New South Wales, South Australia and Victoria and that is leading to market outcomes which are requiring Aemo to intervene very heavily into the market.

And yesterday, Aemo directed more than 5000 megawatts into the market using their powers. They directed generators to bid into the market and to generate 5000 More than 5000 megawatts across the national energy market.

As I said, I email advises that the situation continues to remain that loadshedding and blackouts are unlikely, but continues under very active management. I’ve made clear to Aemo that the government supports any action they choose to take to effectively manage the situation in the best interest of Australian consumers whether they be big industrial consumers or residential consumers Aemo is the market operator has this government for support and continue to actively consider their options

PM “absolutely” welcomes increase to minimum wage

Prime minister Anthony Albanese has welcomed the Fair Work Commission’s decision to increase the minimum wage, and referenced a key moment from the election campaign:

At the heart of the election campaign, I was asked whether I would welcome a decision by the Fair Work Commission to increase the minimum wage by just $1. And today, they have done just that. And when I was asked, Would I welcome a decision? I said, Absolutely.

And I absolutely welcome today’s decision. Of a 5.2% increase granted by the Fair Work Commission to all those who are on the minimum wage that lifts the minimum wage up by just $1.05 An hour or $40 a week. It makes a difference to people who are struggling with the cost of living.

The Fair Work Commission, having assessed the impact on the economy, having made an assessment based upon all the submissions, has chosen 5.2% Which is why we didn’t put a precise figure on it.

We just said we didn’t want people to go backwards, and I welcome that The truth is that many of those people who are on the minimum wage are the heroes who source through the pandemic. These workers deserve more than our thinks they deserve a pay rise and today they’ve got it.

The prime minister Anthony Albanese has just stepped up for a press conference.

Updated at 22.24 EDT

Aemo warns of power shortfalls in South Australia

The Australian Energy Market Operator has issued a warning for South Australia, where power shortfalls are being anticipated in a few days time.

In a statement, the Aemo says people in South Australia could see interruptions to their power on Friday morning and evening.

From 8am to 9.30am on Friday, the maximum load forecast to be interrupted is 359 megawatts, while from 5pm to 9.30pm that evening the maximum load forecast to be interrupted is 382 megawatts.

Aemo has not yet estimated the latest time it would need to intervene through an Aemo intervention event.

Aemo is seeking a market response.

Updated at 22.22 EDT

An increase in the min wage at the rate of inflation is not a raise.

We didn’t just kick the Libs out to keep wages flat, it’s past time for a real raise for those on low wages & sub-poverty line income supports to start reversing the slide into US-style inequality.

— Adam Bandt (@AdamBandt) June 15, 2022

Blackstone’s takeover of Crown Resorts approved by federal court

Ben Butler

Ben Butler

The federal court has approved US private equity group Blackstone’s takeover of Crown Resorts, paving the way for the troubled casino group to de-list from the stock exchange.

Justice Stewart Anderson gave the takeover scheme approval after a brief hearing this morning.

It’s not quite right to say he rubber-stamped the deal – these days, the court’s seal is applied digitally.

The pathway to the courthouse was cleared over the past week when state-based gambling regulators approved Blackstone as a fit and proper operator of the casinos they oversee.

Blackstone is now able to pay shareholders, including James Packer, for their stakes in the company and take full control. You can expect it to be de-listed from the ASX quite quickly.

The takeover comes after a torrid period for Crown, with multiple inquiries into allegations of money laundering and links between the junket operators who brought in high-rolling gamblers and organised crime, sparked by a 2019 expose in Nine Entertainment’s newspapers and on its flagship current affairs show, 60 Minutes.

Crown facilitated money laundering at its Melbourne and Perth casinos and junket operators were indeed linked to organised crime, the first of the inquiries, in NSW, found.

Clean slate? A window cleaner works on the facade of Melbourne’s Crown Casino.
Clean slate? A window cleaner works on the facade of Melbourne’s Crown Casino. Photograph: William West/AFP/Getty Images

Updated at 22.18 EDT

Woolworths to freeze prices of some essential items

Woolworths has announced it will freeze the prices of some essential items until the end of the year to help customers struggling with the increased cost of living.

The retail giant has decided to freeze the prices of flour, sugar, canned tomatoes, frozen peas, chicken tenders, laundry powder and dishwashing liquid.

In an email that will be circulated among customers on Thursday, Woolworths chief executive Brad Banducci said:

We know this is a significant portion of weekly household budgets.

As we all lean into the challenges of inflation, rest assured the whole team at Woolworths is committed to making sure you can always Get your Woolies worth.

Woolworths will freeze prices on a bunch of essentials to help ease inflation pressures.
Woolworths will freeze prices on a bunch of essentials to help ease inflation pressures. Photograph: Loren Elliott/Reuters

Updated at 22.14 EDT

AEC declines recount in seat of Gilmore

Josh Butler

The Australian Electoral Commission says it will not conduct a recount in the federal seat of Gilmore, after Liberal candidate Andrew Constance requested one yesterday.

“I can confirm that a recount will not be directed. The request was considered carefully,” an AEC spokesperson said.

The counting process was undertaken in line with the Electoral Act and there was sufficient checking and re-checking of ballot papers during the scrutiny period (including the fresh scrutiny process).

The declaration of the poll for Gilmore is being reset with a time and location to be updated on the AEC’s website shortly.

The AEC has carefully considered and declined a request for a recount in the division of Gilmore.

We’ll be publishing an updated time for a declaration of this seat in due course. #auspol

— AEC ✏️ (@AusElectoralCom) June 15, 2022

Constance said his scrutineers in the ultra-marginal seat had “raised concerns in relation to certain aspects of the process, particularly the scrutiny of informal votes”, claiming there were “strong grounds for a recount” considering the close result.

Constance came up just short, recording a 2.44% swing but ending up behind Labor on a two-party margin of 50.17–49.83, according to the AEC’s official results.

The Labor MP Fiona Phillips was due to be declared the winner in Gilmore on the NSW south coast at 2pm on Tuesday, but the declaration was delayed due to the request.

The AEC said on Wednesday it would officially declare the result in Gilmore at a date soon to be confirmed.

Phillips welcomed the news in a tweet, saying “Andrew Constance’s application for a recount in Gilmore has been denied”.

We’ve reached out to Constance for comment.

The AEC have advised me this morning that Andrew Constance’ application for a recount in Gilmore has been denied. The details for the AEC Gilmore poll declaration event will be announced shortly. Thanks again to everyone for your ongoing and kind support. 77 #auspol

— Fiona Phillips MP (@fiboydphillips) June 15, 2022

Updated at 22.08 EDT

Penny Wong to head to Solomon Islands

Daniel Hurst

Daniel Hurst

The foreign affairs minister, Penny Wong, is heading to Solomon Islands this week – the first trip to the country since it signed a security deal with China.

It was announced yesterday that Wong would be heading to New Zealand for meetings with her counterpart, Nanaia Mahuta, tomorrow. And Wong has just announced that she will then head to Solomon Islands on Friday:

On Friday, I will visit Solomon Islands, where I will meet Prime Minister the Hon Manasseh Sogavare and a number of his Cabinet ministers. I also look forward to engaging with the local community, including women leaders.

We are committed to deepening our cooperation with Solomon Islands, as we work together to face shared challenges and achieve our shared goals, including on climate change.

I look forward to discussing the ways we can continue to make progress on pandemic recovery, economic development and labour mobility priorities, and addressing our shared security interests.

This will be Wong’s third trip to the Pacific since being sworn in last month. Wong also said her statement that New Zealand was “an indispensable partner in our ambitions for a stronger Pacific family”.

Wong said she and Mahuta would “consider ways we can work together, to make the most of the new energy and resources the Australian Government is bringing to the Pacific”.

Wong said there were “new possibilities for collaboration with New Zealand in support of regional security and on climate change” and she looked forward to “drawing on New Zealand’s experiences as Australia develops a First Nations foreign policy”

Penny Wong is Solomon Islands bound.
Penny Wong is Solomon Islands bound. Photograph: Lukas Coch/AAP

Updated at 22.09 EDT

Christopher Knaus

Christopher Knaus

Aged care sector welcomes wage rise but urges federal government to lift funding

The aged care sector has welcomed today’s minimum wage increase, but has warned it needs a funding increase from the federal government to help struggling providers remain viable.

Industry peak body Aged & Community Care Providers Association said it was clear that aged care workers needed a “significant” pay increase.

But the association’s interim chief executive Paul Sadler said that without additional government support, aged care providers would continue to face an impossible choice between investing in quality and finding savings to keep the doors open.

A significant wage increase for our workforce is essential to attract new people and improve quality of care to older Australians, but when two-thirds of providers are already running at a loss year-on-year, we need the wage increase to be funded by the federal government.

Most aged care providers are running at a loss, Paul Sadler says.
Most aged care providers are running at a loss, Paul Sadler says. Photograph: Niedring/Drentwett/Getty Images/Cavan Images RF

Separate from this morning’s case, the Fair Work Commission is also exploring aged care pay through its aged care work value case, which Labor promised to fully fund if it won government. But that aged care work value case is unlikely to conclude until early next year.

In its findings, the aged care royal commission said the government’s current funding indexation process was inadequate, and had failed to keep up with the increased costs faced by providers.

The royal commission recommended that short-term indexation changes be made to improve funding levels in the next few years, until a new independent pricing process, designed to advise government on the cost of aged care services, can begin its work.

That recommendation was not accepted by the previous government.
Sadler said:

If we don’t see urgent action the aged care workforce crisis is simply going to translate into other serious problems like increased closures, or offsets in other areas such as training or investment in facilities.

Updated at 21.51 EDT

Ai Group says wage rise will ‘add fuel to the inflation fire’

Reactions to the Fair Work Commission’s decision continue to pour in, with the head of the national industry association Ai Group saying the increase will “add fuel to the inflation fire”.

Innes Willox, chief executive of Ai Group, said the minimum wage increase could increase inflation and lead to even higher interest rates:

There is a major risk that the 5.2% per cent increase that has been awarded to the National Minimum Wage, with increases of between 4.6% and 5.2% to award rates, will fuel inflation and lead to even higher interest rates; even more hardship for people with mortgages, personal loans or credit card debts; and add substantially to the risk of unemployment and underemployment – particularly for unskilled employees.

The cost increase will be difficult to absorb for businesses that are already struggling to cope with big increases in material and energy costs, interest rate rises, supply chain disruptions and labour shortages.

Updated at 21.35 EDT

Minimum wage rise a ‘risk to the economy’, chamber of commerce head says

Paul Karp

Paul Karp

The Australian Chamber of Commerce and Industry chief executive, Andrew McKellar, has responded to the minimum wage decision, warning it is a “risk to the economy” and would add $7.9bn to employers’ costs.

But even more interesting than the usual complaints about costs was McKellar’s proposal to excise 2.5 million award-reliant workers from the annual wage review, leaving it for the 180,000 lowest paid workers on the national minimum wage.

McKellar told reporters in Canberra:

What this highlights is that frankly this national wage case process, the way it feeds into the modern awards, it’s an antiquated process, it’s a process that’s had its day, it’s not compatible with the internationally competitive economy that needs to operate in a flexible way and responding to the circumstances, the competitive challenges and need to drive productivity.

Asked what the alternative is, he said:

You must have [centralised wage fixing] for minimum wages, fine, for the 180,000 people on the lowest wage safety net. But when it flows through to the modern award system it needs to be looked at on a case-by-case basis. We need to get back to much more effective enterprising bargaining, flexible wage setting driven by the market.

This proposal is interesting. It either means that the Fair Work Commission should run separate reviews of minimums in awards on a case-by-base basis, or, that if you’re on an award and want a pay rise you should turn to enterprise bargaining with your employer.

McKellar didn’t clarify the comments after the press conference, but reiterated that the “one size fits all” approach of one wage case deciding the pay of 2.6 million workers “isn’t flexible” and alternatives should be on the agenda at the Albanese government’s employment summit.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar speaks to reporters in Canberra today.
Australian Chamber of Commerce and Industry chief executive Andrew McKellar speaks to reporters in Canberra today. Photograph: Mick Tsikas/AAP

Updated at 21.21 EDT