Gillard to focus on RSPT negotiations: Economy Roundup

Prime Minister Julia Gillard says the resources super profits tax will be a major priority for her government over the next few weeks.

At a press conference today, Gillard said she has met with deputy prime minister Wayne Swan and resources minister Martin Ferguson to work on a new strategy, with negotiations expected to commence soon.

“We will genuinely negotiate with the mining industry,” Gillard said this morning – but she refused to go into detail.

“I am not going to go into a discussion about all of the detail. We are going to go into these negotiations again with good faith in a genuine way and resolve this matter,” Swan said.

Gillard also said there no new ministerial appointments to announce, but a meeting of the previous government’s cabinet will be held today and some changes are expected to be discussed.

Meanwhile, private equity firm Kohlberg Kravis Roberts and Co says CBC Asia-Pacific will not join its $US1.5 billion bid for Healthscope.

“KKR maintains a strong interest in Healthscope and continues through the process. We are bidding alone,” a spokesperson told Reuters.

Healthscope is currently at the centre of a bidding war among private equity firms. It has received an offer from a consortium of Blackstone Group LP, TPG and Carlyle.

The Australian shar market has opened lower today, due to disappointing results on both sides of the Atlantic, as investors in America contributed to large sell-offs following signs of consumer weakness.

The benchmark S&P/ASX200 index was down 51.3 points or 1.15% to 4,428.4 at 12.00 AEST, while the Australian dollar opened lower at US86c due to word of banking reform in the US.

Commonwealth Bank shares have fallen 1.6% to $50, while NAB shares have also fallen 1.6% to $24. Westpac lost 1.8% to $21.72 as AMP fell 0.7% to $5.45.

Engineering group Downer EDI has appointed a new deputy chairman and two other board members.

The company announced existing director Mike Harding will become deputy chairman on July 1, while Grant Throne, a new non-executive director, and Grant Fenn, to take the CFO position, will both join the board.

Meanwhile, the BG Curtis liquefied natural gas project has won environmental approval from the state government, premier Anna Bligh says.

The coordinator-general has completed a review of the project, and has approved it under strict conditions including provision of housing and other benefits.

“My conditions are clear and will not allow salt from coal seam gas water to leach into the environment,” coordinator general Colin Jensen said in a statement.

“Blight also said that extra homes will be built, while the majority of workers will be housed in temporary accommodation on Curtis Island.

“The Queensland Curtis LNG project could create up to 8,000 jobs,” she said. She also said the housing projects would create up to 250 homes in the Gladstone region, and up to 280 on the Western Downs.

Property developer Lend Lease has said it is the highest bidder for a site in Singapore the company says is an “important strategic transaction”.

The Jurong Gateway site will offer 108,00 square metres of development space, including a shopping centre and a commercial tower, a company statement says. Together with Asian Retail Investment fund, a $618 million bid will be put forward for the site.

Chief executive and managing director Steve McCann said the project is “an important strategic transaction for our Asian business as we continue to grow our presence in the highly sought after Singapore retail market”.

“This opportunity will significantly enhance Lend Lease retail and investment management platforms in Singapore leveraging off the successful 313@somerset development”.

Elsewhere, WinTech group managing director Kim Wong has consented to court orders that will restrict him from leaving the country.

Overseas, investors in the United States have triggered a sell-off due to news of disappointing consumer confidence figures. The Dow Jones Industrial Average lost 145.53 points or 1.41% to 10,152.80.