This is Business Now with Ross Greenwood.

This is Business Now with Ross Greenwood.

Hi there and welcome the business now here on this Wednesday. Thanks for your company. I'm Ross Greenwood. Coming up on the program today, Rex Airlines and four of its directors are hit with lawsuits from the corporate regulator ASSEX four, among other things, misleading.

Hi there and welcome the business now here on this Wednesday. Thanks for your company. I'm Ross Greenwood. Coming up on the program today, Rex Airlines and four of its directors are hit with lawsuits from the corporate regulator ASSEX four, among other things, misleading.

And deceptive conduct.

And deceptive conduct.

But a big question does arise, why did the federal government put eighty million dollars into Rex when it knew about that ASSEIC investigation. The chance of a rate cut in February improved again today, which would put it right in the middle of the federal election campaign.

But a big question does arise, why did the federal government put eighty million dollars into Rex when it knew about that ASSEIC investigation. The chance of a rate cut in February improved again today, which would put it right in the middle of the federal election campaign.

So how will the coalition respond?

So how will the coalition respond?

We'll hear from Shadow treasurer Angus Taylor very shortly. And it's not just here where big supermarkets are hot political potatoes. In America, a takeover between two of its biggest supermarkets has been blocked by the courts herged on by President Joe Biden's administration. So all that and plenty more coming up on today's program now. Other stories we think you should know about today include following the Reserve banks change of language about the future of interest rates yesterday, money markets today continue to improve the chance of a February rate cut. Reuters this afternoon says there's a sixty two point three percent chance the RBA will cut the cash rate in February. That's up from around fifty seven percent yesterday. Now the chance of a rate cut by April is now pretty much locked in at one hundred percent. One further question is whether this will affect the timing of the federal election. It was always suggested the government's plan was to go to the polls after rates had been cut, the show its economic plan was working. Australia's one year government bomb this afternoon was yielding around four point h three percent, down from yesterday at four point one five percent before the Reserve Bank announcement. The Australian dollars also has been under pressure since that decision. It's now down from sixty four and a quarter to US since yesterday morning to around sixty three and two thirds US since today. Now, one of Australia's old insurance and financial services brands, MLC, seen set to disappear. MLC's origins date back to eighteen eighty six and the name MAMMLC came to life in nineteen oh eight after the merger of.

We'll hear from Shadow treasurer Angus Taylor very shortly. And it's not just here where big supermarkets are hot political potatoes. In America, a takeover between two of its biggest supermarkets has been blocked by the courts herged on by President Joe Biden's administration. So all that and plenty more coming up on today's program now. Other stories we think you should know about today include following the Reserve banks change of language about the future of interest rates yesterday, money markets today continue to improve the chance of a February rate cut. Reuters this afternoon says there's a sixty two point three percent chance the RBA will cut the cash rate in February. That's up from around fifty seven percent yesterday. Now the chance of a rate cut by April is now pretty much locked in at one hundred percent. One further question is whether this will affect the timing of the federal election. It was always suggested the government's plan was to go to the polls after rates had been cut, the show its economic plan was working. Australia's one year government bomb this afternoon was yielding around four point h three percent, down from yesterday at four point one five percent before the Reserve Bank announcement. The Australian dollars also has been under pressure since that decision. It's now down from sixty four and a quarter to US since yesterday morning to around sixty three and two thirds US since today. Now, one of Australia's old insurance and financial services brands, MLC, seen set to disappear. MLC's origins date back to eighteen eighty six and the name MAMMLC came to life in nineteen oh eight after the merger of.

Two companies for today.

Two companies for today.

MLC said its parent, the Japanese nip On Life Insurance Company, will merge with it with Resolution Life. The result will be a new brand called a Sender nip On Life Loan one hundred percent.

MLC said its parent, the Japanese nip On Life Insurance Company, will merge with it with Resolution Life. The result will be a new brand called a Sender nip On Life Loan one hundred percent.

The deals reported.

The deals reported.

To be worth around eight point seven billion US dollars, more than thirteen and a half billion Australian dollars. Nip On lifeboard eighty percent of MLC from the National Australia Bank back in twenty sixteen, but now we'll take over the remaining shares. The company says. As a combined business will service more than two million people, and your humble cup of coffee might soon become more of a luxury and more expensive, the result of a massive hike in bean prices in the past year, which has become even more urgent in the past month or so. This afternoon, coffee prices are at a record around three dollars forty seven pound. Wholesale coffee is up eighty percent in the past year eighty one percent and up more than thirty percent in the past month. The problem mainly is the world's biggest grower, Brazil, where weather conditions have all wiped out next year's crop another major grower, Vietnam is also having problems. But from all the bad things comes a little glimmer of light, and that is this the price of brevel. In the past month, the maker of home and household appliance is, including coffee makers and the logic events. Big jump is that city the broker today has said, if a shop bought coffee becomes too expensive for many people, they'll just resort to making their own home. The shees you can see here up eighteen percent in the past month.

To be worth around eight point seven billion US dollars, more than thirteen and a half billion Australian dollars. Nip On lifeboard eighty percent of MLC from the National Australia Bank back in twenty sixteen, but now we'll take over the remaining shares. The company says. As a combined business will service more than two million people, and your humble cup of coffee might soon become more of a luxury and more expensive, the result of a massive hike in bean prices in the past year, which has become even more urgent in the past month or so. This afternoon, coffee prices are at a record around three dollars forty seven pound. Wholesale coffee is up eighty percent in the past year eighty one percent and up more than thirty percent in the past month. The problem mainly is the world's biggest grower, Brazil, where weather conditions have all wiped out next year's crop another major grower, Vietnam is also having problems. But from all the bad things comes a little glimmer of light, and that is this the price of brevel. In the past month, the maker of home and household appliance is, including coffee makers and the logic events. Big jump is that city the broker today has said, if a shop bought coffee becomes too expensive for many people, they'll just resort to making their own home. The shees you can see here up eighteen percent in the past month.

My new city says one risk is just more.

My new city says one risk is just more.

Competitors jumping in, in other words, more coffee machines. Let's get across today's markets with Edward Boyd. Now the market dropped on its lowest level in about three weeks.

Competitors jumping in, in other words, more coffee machines. Let's get across today's markets with Edward Boyd. Now the market dropped on its lowest level in about three weeks.

Today, Yeah, ross the market eased off a bit today. Most sectors in the red tech stocks utilities in industrial slunt the most property recks lifted, though AX two hundred, it finished the day down.

Today, Yeah, ross the market eased off a bit today. Most sectors in the red tech stocks utilities in industrial slunt the most property recks lifted, though AX two hundred, it finished the day down.

About half a percent.

About half a percent.

Top stocks included the data scrubbing company app and litigation funder Omni Bridgeway and the car dealership business ap Eagers, and there were no announcements from any of them. The gold miner sat Barbera. It did well overnight. It said it was in the early stages of renewing a mining lease in Papua New Guinea, and the mineral SAMs Minor Iluka jumped after a major shareholders sold about one point four percent of the company. It finished off about point six percent. Diversified Minor South thirty two dropped after escalating civil unrest in Mozambique forced it to withdraw production guidance for its Moses aluminium facility. Now they're apparently are issues transporting raw materials to the site due to roadblocks. Infection prevention company Ntasonics was the worst performing health stock. Champion Iron slumped as well Platinum Asset Management It kept faoling a few days after Regal Partners abandoned its takeover bid, and the supply chain logistics software maker Weisteck was sold off, shedding about three percent today and ross that's markets so March well, as I.

Top stocks included the data scrubbing company app and litigation funder Omni Bridgeway and the car dealership business ap Eagers, and there were no announcements from any of them. The gold miner sat Barbera. It did well overnight. It said it was in the early stages of renewing a mining lease in Papua New Guinea, and the mineral SAMs Minor Iluka jumped after a major shareholders sold about one point four percent of the company. It finished off about point six percent. Diversified Minor South thirty two dropped after escalating civil unrest in Mozambique forced it to withdraw production guidance for its Moses aluminium facility. Now they're apparently are issues transporting raw materials to the site due to roadblocks. Infection prevention company Ntasonics was the worst performing health stock. Champion Iron slumped as well Platinum Asset Management It kept faoling a few days after Regal Partners abandoned its takeover bid, and the supply chain logistics software maker Weisteck was sold off, shedding about three percent today and ross that's markets so March well, as I.

Said it at the top of the program, money markets now suggests there's a good chance the Reserve Bank will cut rates in February, which puts it right in the middle of the federal election campaign. If so, that's good news for the government, which is wanted to claim credit for rate cuts, but there's no doubt the economy continues to stumble along barely above recessionary levels, and households have been in their own personal recession for almost two years now.

Said it at the top of the program, money markets now suggests there's a good chance the Reserve Bank will cut rates in February, which puts it right in the middle of the federal election campaign. If so, that's good news for the government, which is wanted to claim credit for rate cuts, but there's no doubt the economy continues to stumble along barely above recessionary levels, and households have been in their own personal recession for almost two years now.

To unpack all of.

To unpack all of.

This, I'm joined by the Shadow Treasurer Angus Tyler Angus always going to chat to you. I just want to first off, go to that issue of the timing of the election, the rate cuts could be coming. Government comes out and says, this is all about us.

This, I'm joined by the Shadow Treasurer Angus Tyler Angus always going to chat to you. I just want to first off, go to that issue of the timing of the election, the rate cuts could be coming. Government comes out and says, this is all about us.

The plan's working. You've got to count of that. How do you do that?

The plan's working. You've got to count of that. How do you do that?

Well, the plan isn't working ross because Anthony Alberinezi promised that people would be better off under labor and it'll take a lot more than a raid cut to make them better.

Well, the plan isn't working ross because Anthony Alberinezi promised that people would be better off under labor and it'll take a lot more than a raid cut to make them better.

Off under labor.

Off under labor.

In fact that we already know that household disposable incomes are down over eight percent since labor came to power. That's the biggest drop in history. We haven't seen it before, far bigger drop than any of our other developed country peers around the world, and it's been absolutely disastrous for Australian households. That is not something to crow about. The government seems to want to tell everybody that they're better off, but they're not and a rate cut is not going to change.

In fact that we already know that household disposable incomes are down over eight percent since labor came to power. That's the biggest drop in history. We haven't seen it before, far bigger drop than any of our other developed country peers around the world, and it's been absolutely disastrous for Australian households. That is not something to crow about. The government seems to want to tell everybody that they're better off, but they're not and a rate cut is not going to change.

And you hear from the act you at the moment saying we need a rate cut. We think there's more than full employment in Australia.

And you hear from the act you at the moment saying we need a rate cut. We think there's more than full employment in Australia.

Rates should be cut. Now.

Rates should be cut. Now.

You obviously have been negotiating with the Treasurer about the composition and the rules around the Reserve Bank in the future. Has the Reserve Bank been right to focus both on inflation and on employment as it makes its interest rate settings?

You obviously have been negotiating with the Treasurer about the composition and the rules around the Reserve Bank in the future. Has the Reserve Bank been right to focus both on inflation and on employment as it makes its interest rate settings?

Is that the right? Well?

Is that the right? Well?

Can I be clear that the ACTU couldn't give a hang about inflation yet the Australian people care deeply about inflation. It's hurt them enormously and prices aren't going down. Prices aren't goingok. Shellbolett made this point. Sixteen percent higher eighteen percent for working families just since labor has been in power, in fact higher than that, and it's caused enormous pain for Australian families. Their real incomes, their real wages indeed have gone backwards under labor by a long way, and there's no pathway.

Can I be clear that the ACTU couldn't give a hang about inflation yet the Australian people care deeply about inflation. It's hurt them enormously and prices aren't going down. Prices aren't goingok. Shellbolett made this point. Sixteen percent higher eighteen percent for working families just since labor has been in power, in fact higher than that, and it's caused enormous pain for Australian families. Their real incomes, their real wages indeed have gone backwards under labor by a long way, and there's no pathway.

But they have a.

But they have a.

Job that's important too. If they didn't have a job. If there's mass unemployment, Australia would be in recession officially, not just the households but the country and so therefore, as a result, the one thing that's got Australian through this time, this period is that.

Job that's important too. If they didn't have a job. If there's mass unemployment, Australia would be in recession officially, not just the households but the country and so therefore, as a result, the one thing that's got Australian through this time, this period is that.

They've had I think it's with all due respect, it's pretty rich to say Australian's have got through easily over the last couple of years.

They've had I think it's with all due respect, it's pretty rich to say Australian's have got through easily over the last couple of years.

They haven't. They've struggled. I'd see it every day on the ground.

They haven't. They've struggled. I'd see it every day on the ground.

I mean, they are really struggling to make ends meet. The food banks are seeing more people than we've ever seen before.

I mean, they are really struggling to make ends meet. The food banks are seeing more people than we've ever seen before.

The number of.

The number of.

People I run into who are really struggling to make ends meat and a lot of people won't teddy how tough they're finding it and to you really, But my pot.

People I run into who are really struggling to make ends meat and a lot of people won't teddy how tough they're finding it and to you really, But my pot.

Is I'm going to the Reserve Bank and what it's done now. If it had taken the traditional path, rates would have been much higher. We would have gone into recession. But the treasure want to be treasurer who had a recession or.

Is I'm going to the Reserve Bank and what it's done now. If it had taken the traditional path, rates would have been much higher. We would have gone into recession. But the treasure want to be treasurer who had a recession or.

We've had seven quarters of household received official risks now. But I mean, at the end of the day, immigration doesn't save you from a household disaster, which is what we've had. We've had seven quarters where jeddipep capita has gone backwards in this country.

We've had seven quarters of household received official risks now. But I mean, at the end of the day, immigration doesn't save you from a household disaster, which is what we've had. We've had seven quarters where jeddipep capita has gone backwards in this country.

We've never seen that before.

We've never seen that before.

Ross, I mean, this is an economic disaster for the household.

Ross, I mean, this is an economic disaster for the household.

So is that something a coalition government could turn around?

So is that something a coalition government could turn around?

Is that something well?

Is that something well?

Well, when you look at the fundamental problem we're facing right now, the supply side of our economy is broken, and it's why we are a long way from sustainably beating inflation in this country.

Well, when you look at the fundamental problem we're facing right now, the supply side of our economy is broken, and it's why we are a long way from sustainably beating inflation in this country.

And I think the res a being knows that we are a long way from that.

And I think the res a being knows that we are a long way from that.

So labor productivity fell half a percent in the last quarter alone. It's a supply problem we've got when we look at housing, when we look at energy, when we look at financial services, sector after sector after sector, childcare, age care. The government stimulating demand again today without solving the supply problems under mental problems.

So labor productivity fell half a percent in the last quarter alone. It's a supply problem we've got when we look at housing, when we look at energy, when we look at financial services, sector after sector after sector, childcare, age care. The government stimulating demand again today without solving the supply problems under mental problems.

Trying to fix the supply side of anything is not second.

Trying to fix the supply side of anything is not second.

But it's how you deliver prosperity, and I reckon prosperity is pretty sexy.

But it's how you deliver prosperity, and I reckon prosperity is pretty sexy.

Ross.

Ross.

I think Australians want aspiration back. I think they want a pathway back to being able to own their home. I think they want a pathway to restoring their standard of living. You are not going to achieve that unless you solve the supply side problems.

I think Australians want aspiration back. I think they want a pathway back to being able to own their home. I think they want a pathway to restoring their standard of living. You are not going to achieve that unless you solve the supply side problems.

This government doesn't get that.

This government doesn't get that.

It's just adding spending, badgering the Reserve Bank and trying to get a short term fixed to get through an election.

It's just adding spending, badgering the Reserve Bank and trying to get a short term fixed to get through an election.

Okay, so Nana, that.

Okay, so Nana, that.

Will solve the underlying problems we've got in our economy. None of that gives us a pathway back to prosper.

Will solve the underlying problems we've got in our economy. None of that gives us a pathway back to prosper.

Let's say you're the Treasurer and it's now six months time something like that, you're delivering your first budget. The reality is you've got deficits for a decade, you've got rising debts of.

Let's say you're the Treasurer and it's now six months time something like that, you're delivering your first budget. The reality is you've got deficits for a decade, you've got rising debts of.

That period of time.

That period of time.

To get it back, you've got to go back to basically Tony Abbott, Joe Hockey, that style of austerity budget. It's not you know how tough that is and how deeply politically popular.

To get it back, you've got to go back to basically Tony Abbott, Joe Hockey, that style of austerity budget. It's not you know how tough that is and how deeply politically popular.

That it's not austerity, but it's back to basics, that's for sure, there's no doubt about that. And you can't have government spending growth of nine percent nine percent a year, which is what Chris Richardson says we're going to be seeing this year, and eight ten percent over two year. I mean this is way too fast, way too fast. You add in state governments and what they're doing. I mean that kind of spending is out of control. It's making it harder for the Reserve Bank to solve the problem. In is got to it's replacing private sector jobs where people pay taxes and contribute to roads and hospitals and schools, with public sector jobs where we don't see that benefit.

That it's not austerity, but it's back to basics, that's for sure, there's no doubt about that. And you can't have government spending growth of nine percent nine percent a year, which is what Chris Richardson says we're going to be seeing this year, and eight ten percent over two year. I mean this is way too fast, way too fast. You add in state governments and what they're doing. I mean that kind of spending is out of control. It's making it harder for the Reserve Bank to solve the problem. In is got to it's replacing private sector jobs where people pay taxes and contribute to roads and hospitals and schools, with public sector jobs where we don't see that benefit.

So that is not the pathway back.

So that is not the pathway back.

Now, the pathway back is private sector lead, business lead.

Now, the pathway back is private sector lead, business lead.

It is getting the supply.

It is getting the supply.

So you know, the private private the private sector big business. Right now, they're leaving Australia. They're taking their capital and putting it in America. And now if multinational companies, there's a whole bunch of companies that don't have that choice. But if they can, there's vast amounts of capital. Big assets we need here in Australia are not being.

So you know, the private private the private sector big business. Right now, they're leaving Australia. They're taking their capital and putting it in America. And now if multinational companies, there's a whole bunch of companies that don't have that choice. But if they can, there's vast amounts of capital. Big assets we need here in Australia are not being.

Built absolutely right because people can't make money.

Built absolutely right because people can't make money.

Well, if you can't get an approval to build a mind, you don't build the mine. If you can't get an approval to build a house, you don't build the house.

Well, if you can't get an approval to build a mind, you don't build the mine. If you can't get an approval to build a house, you don't build the house.

If you can't get the.

If you can't get the.

Road that you need to support the building of a new series of houses, you don't build them.

Road that you need to support the building of a new series of houses, you don't build them.

If your energy prices twice as much here as it is an.

If your energy prices twice as much here as it is an.

America, you shift your manufacturing. I mean we're seeing exactly that ross. I mean, if you're in the energy sector right now, better to invest in gas in the US than in Australia.

America, you shift your manufacturing. I mean we're seeing exactly that ross. I mean, if you're in the energy sector right now, better to invest in gas in the US than in Australia.

And a couple quick, a couple of quick ones for you.

And a couple quick, a couple of quick ones for you.

Number one was the government right to put eighty million dollars into recxs of the airline to keep regional flights alive.

Number one was the government right to put eighty million dollars into recxs of the airline to keep regional flights alive.

Well as litigation as Owned centered proceeding on this. So I won't comment on the case itself. What I will say is the government clearly has questions to answer. Okay, It clearly has questions to answer, and they should be answered. This is eighty million dollars of taxpayers money. Every dollar of taxpayers money really matters at a timeline, and the government should explain why that money was spending there, okay.

Well as litigation as Owned centered proceeding on this. So I won't comment on the case itself. What I will say is the government clearly has questions to answer. Okay, It clearly has questions to answer, and they should be answered. This is eighty million dollars of taxpayers money. Every dollar of taxpayers money really matters at a timeline, and the government should explain why that money was spending there, okay.

Second one is that the Treasury yesterday said he's going to come and talk to you about who is on the new Monetary Policy Board. And he says they've got a whole lot of list of names already as he had that chat with you yet.

Second one is that the Treasury yesterday said he's going to come and talk to you about who is on the new Monetary Policy Board. And he says they've got a whole lot of list of names already as he had that chat with you yet.

Or not, you know, I love the fact that this Treasurer telegraphs a private consultation to the media before the private Well, I just to be honest, that's not how you start a private consultation. Now, having said that, we have always been concerned that his primary strategy here is to sack and stack the board to politicize the Reserve Bank. So the simple answer to this question is keep the current board. Very simple. We've said that all the way along, and in a private consultation heads up to you, I will say the same thing because I've said it publicly many many times.

Or not, you know, I love the fact that this Treasurer telegraphs a private consultation to the media before the private Well, I just to be honest, that's not how you start a private consultation. Now, having said that, we have always been concerned that his primary strategy here is to sack and stack the board to politicize the Reserve Bank. So the simple answer to this question is keep the current board. Very simple. We've said that all the way along, and in a private consultation heads up to you, I will say the same thing because I've said it publicly many many times.

Angers tell I got to leave it there, but many things to you. It could be with you you Angers Teler there.

Angers tell I got to leave it there, but many things to you. It could be with you you Angers Teler there.

Now, just before we get to the break here, we have a little bit of breaking US Regional Express REX funded of the assets legal proceedings today is the statement the administrators Ernst and Young REX is acknowledged that asset proceedings and will keep.

Now, just before we get to the break here, we have a little bit of breaking US Regional Express REX funded of the assets legal proceedings today is the statement the administrators Ernst and Young REX is acknowledged that asset proceedings and will keep.

The market informed in.

The market informed in.

Accordance with its continuous disclosure obligations.

Accordance with its continuous disclosure obligations.

We're coming up after the break will.

We're coming up after the break will.

Dive into that lawsuit against that regional airline x REX and question by the government did put that eighty million dollars into keep it flying when it knew of the regulator's investigation. It's great to have your company here on business. Now, well, let's take into a story that really is important today.

Dive into that lawsuit against that regional airline x REX and question by the government did put that eighty million dollars into keep it flying when it knew of the regulator's investigation. It's great to have your company here on business. Now, well, let's take into a story that really is important today.

And as we've told you, the.

And as we've told you, the.

Corporate Regulator ASSEIC, the Senate will take legal action against the Regional Airline REX and four of its directors. REX entered administration back in July, but continues to fly because of an eighty million dollar government lifeline.

Corporate Regulator ASSEIC, the Senate will take legal action against the Regional Airline REX and four of its directors. REX entered administration back in July, but continues to fly because of an eighty million dollar government lifeline.

We're alleging contraventions by REX have the interest Disclosure regime under the Corporations Act, and for misleading and deceptive conduct in connection with guidance that REX gave in February twenty twenty three, and in in connection with a corrective announcement they made in June last year.

We're alleging contraventions by REX have the interest Disclosure regime under the Corporations Act, and for misleading and deceptive conduct in connection with guidance that REX gave in February twenty twenty three, and in in connection with a corrective announcement they made in June last year.

ACIK is also taking action there.

ACIK is also taking action there.

It's four REX directors, including its longtime chairman and founding shareholder Lym Kim High and its current chairman, the former National Party politician John Sharp. But the matter raises a serious question about why the federal government pailed out the airline with that eighty million dollars. And that question is especially pointed because, ASSEX chairman Joe Longer today said, he briefed the Treasurer Jim Chalmers about the possible action.

It's four REX directors, including its longtime chairman and founding shareholder Lym Kim High and its current chairman, the former National Party politician John Sharp. But the matter raises a serious question about why the federal government pailed out the airline with that eighty million dollars. And that question is especially pointed because, ASSEX chairman Joe Longer today said, he briefed the Treasurer Jim Chalmers about the possible action.

Before that lifeline was handed out.

Before that lifeline was handed out.

All I can confirmers of the government and was briefed about the investigation and its progress prior to the injection of the eighty million.

All I can confirmers of the government and was briefed about the investigation and its progress prior to the injection of the eighty million.

Now, there are a few things to unpack here, especially the role of the directors and the allegation that they allowed untrue information about the airline's financial position to be issued publicly. Megan Motto is chief executive of the Governance Institute and joins me Now, Meghan, many thanks for your time. This raises some difficulty for REX and its viability because really that lifeline will extend to just after the election, and after then it's anybody's question as to what happens.

Now, there are a few things to unpack here, especially the role of the directors and the allegation that they allowed untrue information about the airline's financial position to be issued publicly. Megan Motto is chief executive of the Governance Institute and joins me Now, Meghan, many thanks for your time. This raises some difficulty for REX and its viability because really that lifeline will extend to just after the election, and after then it's anybody's question as to what happens.

Yeah, certainly the lifeline is something that will be the purvey of the government of the day and as you've said, it's likely to head into a post election environment. Governments, of course make policy decisions based on a set of broad considerations, and I imagine this is one of the airlines that services regional Australia and that servicing of regional Australia is something of national importance. It's something that government has to think about ultimately doing so they've got to balance up all of those different considerations in making these sorts of policy decisions.

Yeah, certainly the lifeline is something that will be the purvey of the government of the day and as you've said, it's likely to head into a post election environment. Governments, of course make policy decisions based on a set of broad considerations, and I imagine this is one of the airlines that services regional Australia and that servicing of regional Australia is something of national importance. It's something that government has to think about ultimately doing so they've got to balance up all of those different considerations in making these sorts of policy decisions.

Okay, But then that's the government side. On the other side, there's also the obligations of directors, and that's also key here because if the airline was viable, if the directors have been doing their job, then ultimately it might not have needed that eighty million dollars in taxpayers money.

Okay, But then that's the government side. On the other side, there's also the obligations of directors, and that's also key here because if the airline was viable, if the directors have been doing their job, then ultimately it might not have needed that eighty million dollars in taxpayers money.

Look indeed, and at this stage there's only allegations, so I can't speak to any of the particulars of the case, but it would appear that not only obviously of the finances of the airline gone into disarray as they have gone into administration, but there's been a lack of clarity around the disclosures around that, and certainly some serious allegations being made by ASIK here. Directors have an absolute obligation to ensure the solvency of an organization, but particularly in publicly listed companies as rex is, they have an obligation to be disclosing accurate information to the market that investors can make informed decisions about whether or not to invest in that company or not.

Look indeed, and at this stage there's only allegations, so I can't speak to any of the particulars of the case, but it would appear that not only obviously of the finances of the airline gone into disarray as they have gone into administration, but there's been a lack of clarity around the disclosures around that, and certainly some serious allegations being made by ASIK here. Directors have an absolute obligation to ensure the solvency of an organization, but particularly in publicly listed companies as rex is, they have an obligation to be disclosing accurate information to the market that investors can make informed decisions about whether or not to invest in that company or not.

Okay, and those obligations are ongoing and the key one is that they must disclose anything that is material to shareholders in a timely manner.

Okay, and those obligations are ongoing and the key one is that they must disclose anything that is material to shareholders in a timely manner.

They've got to do it. There's no e exorbuts.

They've got to do it. There's no e exorbuts.

That's exactly right, and it's really important that all of the markets have the information at the same time. That's why we have the continuous disclosure rules that we have and the guidance that we have in place from the AX around that and of course from Massac as well. It's important that the directors, the broader community, they all get the information at the same time, which is why the timeliness of those disclosures becomes a critical factor.

That's exactly right, and it's really important that all of the markets have the information at the same time. That's why we have the continuous disclosure rules that we have and the guidance that we have in place from the AX around that and of course from Massac as well. It's important that the directors, the broader community, they all get the information at the same time, which is why the timeliness of those disclosures becomes a critical factor.

It raises one other issue here as well, in my mind, and that is even the qualifications of directors to fulfill their obligations, whether they are absolutely conscious of all of those obligations to comply with continuous disclosure, whether they underst stand the notion of what being a public company director is really all about.

It raises one other issue here as well, in my mind, and that is even the qualifications of directors to fulfill their obligations, whether they are absolutely conscious of all of those obligations to comply with continuous disclosure, whether they underst stand the notion of what being a public company director is really all about.

I think this is something that actually we're seeing quite a bit of an intense and increased scrutiny over. Certainly, the Governance Institute would purport that it's really important that all people who are in decision making roles, that is governing organizations. And that's not just boards of directors, but of course senior executives that are making decisions also. Those people have to have the right qualifications to understand their obligations and liabilities under the law and under other pieces of regulation. We are actually finding that, for example, we've done some research around the ASX three hundred and what we're finding is that the director qualifications, that is qualifications bespoke qualifications in governance are actually diminishing amongst our top listed directors. So that is something that is of quite a bit of concern to the Governance Institute. It's not enough to just have been a good business person or a good politician or a good executive. You need to understand the breadth of your liabilities and obligations as a director.

I think this is something that actually we're seeing quite a bit of an intense and increased scrutiny over. Certainly, the Governance Institute would purport that it's really important that all people who are in decision making roles, that is governing organizations. And that's not just boards of directors, but of course senior executives that are making decisions also. Those people have to have the right qualifications to understand their obligations and liabilities under the law and under other pieces of regulation. We are actually finding that, for example, we've done some research around the ASX three hundred and what we're finding is that the director qualifications, that is qualifications bespoke qualifications in governance are actually diminishing amongst our top listed directors. So that is something that is of quite a bit of concern to the Governance Institute. It's not enough to just have been a good business person or a good politician or a good executive. You need to understand the breadth of your liabilities and obligations as a director.

I'll tell you what, megid are always good to have you on the program and many thanks for your time today.

I'll tell you what, megid are always good to have you on the program and many thanks for your time today.

Good to talk to you Ross.

Good to talk to you Ross.

And this is not the last we'll hear of that.

And this is not the last we'll hear of that.

And the reason why I say that is because the government clearly has to answer why they put that.

And the reason why I say that is because the government clearly has to answer why they put that.

Money in to what was a failing airline.

Money in to what was a failing airline.

And then the second aspect of this is also the government's decision to make certain that there were flights into Regional Australia. Remember BONDSA had collapsed only months before Rex went into administration, so.

And then the second aspect of this is also the government's decision to make certain that there were flights into Regional Australia. Remember BONDSA had collapsed only months before Rex went into administration, so.

This is why it's important.

This is why it's important.

But do remember that other point, and that is that that lifeline was set to only last after the election. So in other words, what are the obligations for Regional Australia and.

But do remember that other point, and that is that that lifeline was set to only last after the election. So in other words, what are the obligations for Regional Australia and.

Its flights after that?

Its flights after that?

Anyway, just to finish up, it's not just here where politicians are sensitive also to supermarket competition and the impact it has on shelf prices and consumer all go to grumpiness. In America, the giant supermarket chain Kroger, which hosts which runs a host of brands including Food for Less, pay Less and Picken Save. It launched a twenty billion dollar takeover for its rival Albertson's. The Albertson's key brands includes Safeway and Actme. It has twenty two hundred stores in thirty four states and twenty two distribution centers plus nineteen manufacturing plans. But US district judgees agree with the Federal Trade Commission That's America's equivalent of our a triple C, that the takeover.

Anyway, just to finish up, it's not just here where politicians are sensitive also to supermarket competition and the impact it has on shelf prices and consumer all go to grumpiness. In America, the giant supermarket chain Kroger, which hosts which runs a host of brands including Food for Less, pay Less and Picken Save. It launched a twenty billion dollar takeover for its rival Albertson's. The Albertson's key brands includes Safeway and Actme. It has twenty two hundred stores in thirty four states and twenty two distribution centers plus nineteen manufacturing plans. But US district judgees agree with the Federal Trade Commission That's America's equivalent of our a triple C, that the takeover.

Would diminish supermarket competition.

Would diminish supermarket competition.

Kroger argued that it needs more scale to compete with the giants of retailing there, that is Walmart and Amazon. An FTC spokesperson was quoted as saying, the ruling protects competition in the grocery market, which will prevent prices from rising even more. The curiosity that this deal was knocked back under the Biden administration, you can't of wonder whether the Trump administration would have taken a different view. Anyway, is it for today's program, Thanks for your company

Kroger argued that it needs more scale to compete with the giants of retailing there, that is Walmart and Amazon. An FTC spokesperson was quoted as saying, the ruling protects competition in the grocery market, which will prevent prices from rising even more. The curiosity that this deal was knocked back under the Biden administration, you can't of wonder whether the Trump administration would have taken a different view. Anyway, is it for today's program, Thanks for your company

And we'll do it all again tomorrow.

And we'll do it all again tomorrow.