Qatar Airways’ acquisition of 25% stake in Virgin Australia approved
Qatar Airways’ acquisition of a 25% stake in Virgin Australia has been approved by the federal government, AAP reports, subject to conditions.
The treasurer, Jim Chalmers, has announced the approval, saying the proposal would deliver more flights for Australians, create Australian jobs and strengthen competition in the aviation sector.
My decision aligns with the advice of the Foreign Investment Review Board that this proposal is consistent with the national interest.
The government approval followed cross-government consultation by Treasury, engaging the aviation industry, unions and other relevant stakeholders.
It follows the draft determination by the Australian Competition and Consumer Commission to allow the airlines to engage in co-operative conduct under an integrated alliance for five years, leading to 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
Chalmers said he had approved the proposal subject to legally enforceable conditions to ensure Australian representation on Virgin’s board and protection of its customer data.
The CEOs of Virgin Australia and Qatar Airways have written to me with assurances that this investment will create employment benefits and job growth opportunities for Australians.
The proposal is expected to provide a long-term pathway for Virgin Australia to operate its own long-haul flights.
Key events
Where does the RBA sit on future rate cuts?
Krishani Dhanji
It’s the question everyone around the country is asking – after a rate cut in February, when will we see another?
The deputy governor, Andrew Hauser, has told Senate estimates the Reserve Bank’s mission to bring down inflation is “on track” but there’s more to be done.
Central banks never declare mission accomplished but so far appears on track … We hope and expect that we will receive more further positive news, but we do need to see it before I think we feel confident that further removal of restrictiveness is appropriate.
Hauser was also asked about the impact of US tariffs and global uncertainty on the economy, and on the bank’s decision to cut rates in February. He said it was considered by a few board members, including himself.
He also noted the impact of uncertainty could lead to delays in investment in the economy:
If things remain as uncertain as they are currently then perhaps they’ll (businesses) delay their investment projects … just to see how things pan out.
‘Unprecedented’ marine heatwave affecting WA deep sea
Donna Lu
An “unprecedented” marine heatwave off the coast of Western Australia, which has caused coral bleaching at Ningaloo Reef and mass fish kills, extends down to deep sea waters, new analysis suggests.
Waters off much of the state’s north-west have experienced a prolonged heatwave since September. Dr Jessica Benthuysen, an oceanographer from the Australian Institute of Marine Science, said:
Monitoring shows the warm temperatures are not confined to just surface waters and have reached to at least 300 metres in the past few months, which has helped the extreme event to remain for such an extended period.
The temperatures reached unprecedented levels through December and January. In mid-to late January we saw warm waters exceeding 3C above normal along the shelf from the southern Pilbara to Ningaloo and Shark Bay.
Benthuysen added that though southerly winds had provided recent relief at Ningaloo, water temperatures were already “well above” what was expected in March or April, when waters tend to be warmest.
Tory Shepherd
Wong says China gave notice of firing exercise but not in accordance with best practice
There has been some hectic semantics in estimates about whether, and when, China gave notice about its live-firing exercise in the Tasman Sea.
The shadow home affairs minister, James Paterson, said there’s an inconsistency between the prime minister, Anthony Albanese, saying China gave notice and others saying China did not give notice.
China gave notice, but it wasn’t in accordance with best practice, the foreign affairs minister, Penny Wong, said (a commercial aircraft raised the alarm first). Dfat official Elly Lawson added:
It was not a formal notice to mariners, so it was not given directly to Australia or New Zealand.
Tory Shepherd
Paterson describes handling of Chinese ships issue as ‘shambolic’
Circling back to the foreign affairds minister, Penny Wong, who has been appearing before Senate estimates: The shadow home affairs minister, James Paterson, has been hyper-focused on who knew what, and when, in regards to the Chinese ships.
He’s digging into the time at which Wong was notified about the live-firing incident (it was about half an hour after the transport minister was notified, he said).
Wong said he asked the same questions yesterday, and referred him to those answers:
I think you are engaging in politicisation of this event for your own political purposes. And I think people can see that.
Paterson says the handling of the issue has been “shambolic”. He also has a back-and-forth with officials over the whereabouts of the taskforce. It’s 548km west of Hobart, he is told, and officials add there are regular updates on the defence website.
If too much taskforce talk is barely enough, you can follow those updates here.
Caitlin Cassidy
$44m announced for boarding schools in remote First Nations communities
The federal government has announced a $44m investment towards boarding schools that cater to First Nations students in remote communities.
It follows ongoing lobbying from independent providers, who cater to First Nations boarders, warning schools were at risk of closing after the commonwealth’s grants program was discontinued in the 2024-25 budget.
More than 50 boarding providers will share in the latest funding, expected to support about 2,500 First Nations students to graduate high school with upgrades to facilities and tech, employment of First Nations teachers and wellbeing officers or counsellors trained in trauma-informed care.
The minister for education, Jason Clare, said investing in boarding facilities helped First Nations students access quality education and finish school.
The government understands the importance of choice for families in supporting their children through their education and options to study on-Country, or nearby where possible. Boarding continues to be an important education pathway for First Nations students, particularly for families in remote areas.
Krishani Dhanji
Deputy RBA governor fronting Senate estimates
Sticking with Senate estimates, the Reserve Bank of Australia is in the spotlight this morning – but the governor, Michele Bullock, isn’t in the hot seat. She’s over at a G20 meeting, so the deputy governor, Andrew Hauser, is taking her place.
Liberal senator Dean Smith is trying to get a peek behind the curtain on when and how the board makes decisions on the cash rate.
Hauser says that decision is generally made on Tuesday morning – so the board first meets on Monday afternoon, then takes the evening to ponder. That decision is then revealed at 2.30pm on the Tuesday.
Hauser is also asked about whether the board will vote on rates decisions when new RBA reforms come into effect (at the moment the board makes a decision based on consensus rather than a formal vote). Hauser says the bank is looking at how other central banks operate before settling on a model of voting v consensus or somewhere in the middle.
Tory Shepherd
Wong outlines further details on who knew what, when, about Chinese firing exercises
Continuing from our last post: Penny Wong has described China’s live-firing in the Tasman Sea as “unsafe and unprofessional”.
She told Senate estimates that Defence had monitored the Chinese task group and that commercial aircraft had issued an alert about the live firing, as had New Zealand (although she didn’t mention the exact timing of these alerts).
The government asked China for an explanation within hours, Wong said, adding that she made direct representations to her counterpart, Wang Yi, and made it clear that the activities “did not meet our expectations and was of deep concern”, she said.
Wong said some politicians “seem to be insinuating” that Australia is responsible for China not giving notice.
We now see gunboat diplomacy being added to the litany of war talk from the opposition. Such rhetoric does not make Australia safer.
She said reckless political point-scoring had implications at home, importing hatred and division. She said “we all want to end the scourge of antisemitism, of Islamophobia and of violence extremism” and called for the temperature to be dialled down.
Wong says world facing ‘growing challenges’ amid Ukraine, Gaza and Sudan conflicts
Tory Shepherd
Australia faces a “world of growing challenges”, of unpredictability and the “devastating human toll” of conflicts in Ukraine, Gaza and Sudan, the foreign affairs minister, Penny Wong, has told Senate estimates.
Wong outlined those challenges before accusing the opposition leader, Peter Dutton, of reckless political point scoring and “gunboat diplomacy”. In her opening statement to the hearing for the department of defence, foreign affairs, and trade, she said:
Each day, our assumptions are being tested. Malign actors continue to engage in sabotage and terrorism. Bullies threaten to use nuclear weapons. Authoritarianism is spreading. Some countries are shifting alignment.
Wong said the changing climate, opaque military build ups, inflation and trade disruptions were also challenges.
Australians don’t want “reckless political gain from people who claim to be leaders”, she said, accusing the previous government of leaving a “massive vacuum” in the Pacific.
Dutton once said it was “inconceivable” we would go to war, but he “is going to keep beating the drums of war”, she said.
Chance tropical cyclone could move closer to Queensland coast on Sunday
Let’s check in on Tropical Cyclone Alfred, which has been tracking through the Coral Sea this week, well off the coast of Queensland.
The Bureau of Meteorology said it is moving south as a severe category 3 system, with a risk it might impact the coast:
There is a risk that it may move closer to the central or southern Queensland coast by Sunday. However, there remains large uncertainty with Alfred’s future track and intensity forecast beyond the weekend.
Josh Butler
Dutton continues to defend purchase of bank shares
Continuing from our last post: Peter Dutton was asked whether he had learned anything about the package from then-opposition leader Malcolm Turnbull, and responded:
I’ve conducted myself with integrity my whole life. I have never made an investment decision based on insider information or insider knowledge. I mean, why would I do that, and then knowing that the shares are all disclosable?
I saw an opportunity to invest, as I’m sure many other Australians did at the time, with banks that had strong balance sheets, and because of global instability, particularly in the US, that the bank share price was depressed at the time. My judgment was that it was a good investment to make. I disclosed it all. I didn’t do with any insider information and that’s the reality of it.
Dutton claimed he simply “took a punt” on the stocks he bought.
Like, as I say, many other Australians would have looked at blue chip stocks and thought, you know, they’re down a lot at the moment. There’s nothing wrong with them. The problem is emanating out of the US, and you know, I made a decision to invest and disclose at all.
