Costello tells Queensland to sell off energy assets

The audit of Queensland’s finances led by former federal treasurer Peter Costello recommends a wholesale privatisation of public assets to help pay down $30 billion in debt and win back the state’s AAA credit rating, according to the Australian Financial Review.

The 1000-page, three-volume report was presented to the Newman government on Thursday.

The Liberal National Party government will not formally respond immediately to the document, which is set to escalate tensions with unions over privatisations.

The commission recommends the sale of state-owned energy companies and ports, including generators CS Energy and Stanwell Corporation and transmission company Powerlink.

Coal price recovery won’t stop cost cuts

Coal prices appear to be slowly recovering heading into the latest round of price negotiations with Asian customers but miners remain focused on cutting costs to improve profitability, according to the Australian Financial Review.

The spot price of thermal coal is now $US93 a tonne, up from a low of $80 a tonne last year but well below the Japanese fiscal year contract price of $115 a tonne due to expire at the end of March.

At talks beginning next week, Xstrata and Japan’s Tohuku Electric are poised to discuss pricing for the next fiscal year starting April 1.

Platts said the utility was unlikely to be prepared to pay more than $100 a tonne.

The half-year contract price, set in October, was $97 a tonne.

Coalition eyes industrial relations reform in 2016

The Productivity Commission will be charged with overhauling the nation's workplace laws if Opposition Leader Tony Abbott wins power – but major changes to the Fair Work Act would be delayed until after the 2016 election under a plan being "actively considered" by the federal opposition, according to The Australian.

Defying business demands for major changes to Labor's workplace system, senior coalition figures yesterday said the proposal was designed to neutralise a looming multi-million dollar campaign by Labor and the unions to convince voters that Abbott would reintroduce aspects of former prime minister John Howard's Work Choices regime if he won the September 14 election.