The ACCC has instituted Federal Court proceedings against Productivity Partners Pty Ltd, trading as Captain Cook College, alleging systemic unconscionable conduct in breach of the Australian Consumer Law.
The ACCC alleges that from 7 September 2015, Captain Cook College removed consumer safeguards from its enrolment and withdrawal processes for online courses to improve its financial performance.
“We allege that Captain Cook College engaged in systemic unconscionable conduct designed to maximise profit at the expense of their students,” ACCC Commissioner Sarah Court said.
“We are very concerned by Captain Cook College’s decision to make process changes that we will submit removed consumer safeguards. We allege that this significantly reduced the College’s ability to detect misconduct by its sales agents and assess a consumer’s suitability or participation in the course they had been enrolled in.”
“We further allege that the removal of consumer safeguards increased the number of students that Captain Cook College enrolled and who remained enrolled, allowing the College to increase VET FEE-HELP payments from the Commonwealth,” Ms Court said.
Approximately 5,500 affected consumers whose enrolment was processed during the period from 7 September 2015 have VET FEE-HELP debt, totalling over $60 million. Around 98% of those 5,500 consumers failed to complete any part of the course they were enrolled in, and around 86% never even logged in to their online course.
In these proceedings, it is also alleged that Captain Cook College made false or misleading representations, engaged in unconscionable conduct and failed to provide unsolicited consumer agreement protections in its dealings with four individual consumers.
The ACCC has also alleged that Ian Cook (former Captain Cook College CEO), Site Group International Limited (Site, the parent company of Captain Cook College) and Blake Wills (former COO of Site) were knowingly concerned in Captain Cook College’s systemic unconscionable conduct.
“We will not hesitate to take appropriate action against businesses and executives who treat consumers unconscionably in breach of the Australian Consumer Law,” Ms Court said.
The ACCC is seeking pecuniary penalties, declarations, corrective notices, adverse publicity orders, finding of fact orders and orders requiring the implementation of a consumer law compliance program, as well as costs. The ACCC is also seeking orders disqualifying Ian Cook and Blake Wills from managing corporations.
Consumers with concerns about their VET provider can contact the VET Student Loans Ombudsman atwww.ombudsman.gov.au/vslo(link is external) and complete the online complaint form.
Category: Australian News
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Littleproud welcomes charges laid over needles in strawberries
Minister for Agriculture David Littleproud has welcomed news Queensland Police have charged an alleged offender over planting needles in strawberries.
The 50-year-old woman will face court in Brisbane today.
“I congratulate Queensland Police for working hard on this issue,” Minister Littleproud said.
“I think many had assumed no-one would ever be charged over these serious offences.
“Everyone has the right to the presumption of innocence and their day in court, and that process has to be allowed to run its course.
“But I’m glad police kept at it long after the media attention died down.
“The needles-in-strawberries scandal has cost our farmers millions during tough times.
“Summer and Christmas are important times of year for strawberry growers and I hope news of an alleged offender being charged also brings growers some mental relief.”
25 years of the Republic of Singapore Armed Forces training at RAAF Base Pearce
The Royal Australian Air Force (RAAF) hosted Singaporean Senior Minister of State (Defence) Heng Chee How at RAAF Base Pearce today to celebrate the 25th anniversary of the Republic of Singapore Air Force training at the base.
Australia and Singapore are close and longstanding partners, with shared interests in regional security and stability.
Senior Australian Defence Force Officer, RAAF Base Pearce, Wing Commander Brett Mitchell said Defence was pleased to be able to support the Republic of Singapore Air Force’s pilot training.
“The people-to-people and military linkages developed through this arrangement are invaluable.
Every current Republic of Singapore Air Force pilot has undertaken training at RAAF Base Pearce where the Singapore Flying Training Institute is located, which is testament to the close and enduring nature of our bilateral relationship,” Wing Commander Mitchell said.
Federal Court refuses application by Moses Obeid for suppression order
The Federal Court today dismissed an application by Moses Obeid for leave to appeal the Court’s earlier refusal to grant a suppression order over part of its reasons in an alleged bid rigging case brought by the ACCC.
On 6 July 2018 the Federal Court dismissed proceedings brought by the ACCC against 11 respondents for alleged bid-rigging conduct. These proceedings related to the 2009 tender process conducted by the then NSW Department of Primary Industries for exploration licences over the Mount Penny and Glendon Brook coal tenements in the Bylong Valley. One respondent, Loyal Coal Pty Ltd (Loyal), admitted liability before the trial took place.
The ACCC filed an appeal from that judgment on 3 August 2018. This appeal is yet to be to be heard.
On 6 July 2018 Moses Obeid also sought a suppression order over part of the Court’s reasons.
This application was refused by the Court but in the meantime part of the reasons have remained the subject of interim suppression orders pending resolution of an application by Moses Obeid for leave to appeal that decision.
The decision of the Court today means that the judgment of 6 July 2018 is no longer subject to any suppression order.
Background
The ACCC’s investigation followed the report by the NSW Independent Commission Against Corruption (ICAC) in its Operation Jasper investigation concerning the same tender process.
The ACCC alleged that Cascade had entered into a contract, arrangement or understanding with Loyal, three of its affiliated companies and United Pastoral Group for Loyal to withdraw from the NSW Government’s tender process for the Mount Penny and Glendon Brook mines.
As part of the arrangement, Cascade would then grant one of the Loyal affiliated companies, Buffalo Resources, a 25 per cent interest in the Mount Penny coal release area and agree to buy the properties of some landowners, who were represented by Paul and Moses Obeid, at four times the land value, and to take over their mortgage obligations.
Loyal subsequently withdrew its bid, and Cascade won the tender for the Mount Penny and Glendon Brook coal release areas.
The ACCC also alleged that in 2010, Buffalo Resources transferred ownership of the 25 per cent interest to another company, Southeast Investment Group, which later sold the interest back to an entity affiliated with Cascade and controlled by Richard Poole.
As a result of the sale, Southeast Investments accepted $60 million in benefits, including approximately $30 million in cash payments, which was distributed to beneficiaries of the Obeid Family Trust No. 2, including Paul and Moses Obeid and their immediate families.
The ACCC instituted proceedings in May 2015 against 11 respondents as follows:
- Cascade Coal Pty Ltd (Cascade) and an associated company, Coal & Minerals Group (CMG), and the following individuals:
- John McGuigan, director of Cascade;
- Richard Poole, a former director of Cascade;
- James McGuigan, a representative of Cascade;
- Moses and Paul Obeid;
- Companies associated with Moses and Paul Obeid, namely:
- Loyal Coal Pty Ltd (Loyal);
- Locaway Pty Ltd (Locaway);
- Mincorp Investments Pty Ltd, formerly Voope Pty Ltd (Voope); and
- Southeast Investment Group Pty Ltd (Southeast Investments).
In April 2016, Loyal admitted to bid rigging in breach of the cartel laws, and agreed to resolve the ACCC’s proceedings brought against it. That settlement has yet to be finalised by the Court.
The hearing took place from 4 April 2016 to 28 April 2016. Judgment was delivered on 6 July 2018.
Two new cases of mesothelioma diagnosed every day in Australia, with one of the poorest survival rate of any cancer
Over 700 Australians were diagnosed with mesothelioma in 2017—equating to 2 cases diagnosed per day—according to the latest data released today by the Australian Institute of Health and Welfare (AIHW).
The report, Mesothelioma in Australia, is the first report on the subject since the AIHW took over management of the Australian Mesothelioma Registry (AMR) in 2017.
Mesothelioma is a form of cancer in the mesothelium—the protective lining on the inside of body cavities and the outside of internal organs, such as the lungs, heart and bowel. Mesothelioma is a rare and aggressive cancer, and its primary cause is exposure to asbestos.
‘Before being banned in Australia in 2004, asbestos was used in more than 3,000 products in the construction industry, in industrial plants and equipment, and in ships, trains and cars,’ said AIHW spokesperson Dr Lynelle Moon.
A large amount of asbestos still remains in buildings and other infrastructure, and thousands of different products containing asbestos are still in use today.
Dr Moon said that Australia has one of the highest incidence rates of mesothelioma in the world, with between 700 and 800 people diagnosed each year.
‘In 2017, 710 Australians were diagnosed with mesothelioma, with most cases—592—among men,’ she said.
‘This is largely due to the higher proportion of males working in industries where asbestos exposure may have occurred in the past, such as construction.’
Of the people with mesothelioma who provided details of their occupations and residence since the AMR was established in 2010, 93% were considered to have experienced some level of exposure to asbestos during their lives. For men, most exposure was considered to be occupational, while for most females it was non-occupational (such as exposure while living in a house where asbestos was present).
Among states and territories for which data was available, the rate of mesothelioma was highest in Western Australia, with 4.9 cases diagnosed for every 100,000 people. It was lowest in Tasmania, at 1.5 cases per 100,000 people.
While the AMR has only been in operation since July 2010, the AIHW has been able to bring together other data sources (such as national cancer incidence data) to give longer-term insights into this issue in Australia. These data shows a marked increase in the number of new cases of mesothelioma, rising from 157 cases in 1982. To date, the highest overall number of new cases was in 2014, with 770 cases reported.
‘This rise could be due to a number of factors such as increased awareness and improvements in diagnosis. Further, Australia used asbestos extensively until the mid-1970s, and mesothelioma has a delayed onset of 20-30 years from exposure,’
‘Sadly, mesothelioma has a very poor prognosis. It is often diagnosed once it has reached the advanced stages, as early symptoms can go unnoticed or be mistaken as symptoms for other, less serious conditions,’ Dr Moon said.
Mesothelioma survival rates are very low and this has not changed over time.
‘Since the mid-1980s, the 5-year relative survival rate for mesothelioma has averaged 5.4%. For comparison, the 5-year relative survival rate for all cancers combined was 69% in 2010-2014,’ Dr Moon said.
The average time between diagnosis and death is around 11 months according to analysis of all mesothelioma diagnoses and deaths recorded in the Australian Mesothelioma Registry (AMR).
The report was produced in collaboration with the Monash University Centre for Occupational and Environmental Health and an expert advisory group, including representatives from the Bernie Banton Foundation. The Australian Mesothelioma Registry is funded by Safe Work Australia.
APRA announces Terms of Reference for enforcement strategy review
The Australian Prudential Regulation Authority (APRA) today announced Terms of Reference for a review of its enforcement strategy.
The Review will be led by APRA Deputy Chair John Lonsdale, supported by APRA staff and external advisers as necessary. Mr Lonsdale will be assisted by an independent advisory panel of experts in the administration of law and regulatory enforcement. The panel comprises former NSW Supreme Court Judge Dr Robert Austin, ACCC Commissioner Sarah Court and Professor Dimity Kingsford Smith, holder of the Minter Ellison Chair in Risk and Regulation at UNSW Law, and the Director of the Centre for Law Markets and Regulation, UNSW.
Mr Lonsdale said the review will examine APRA’s current enforcement strategy and infrastructure and how it interacts with APRA’s core supervisory approach.
“The review will be a forward-looking examination of APRA’s approach to the use of its enforcement powers to ensure that financial promises made by supervised institutions are met within a stable, efficient and competitive financial system.
“APRA has taken a range of supervisory actions over many years but it is timely to examine whether APRA’s traditional approach – prioritising prevention and rectification – can be augmented by greater enforcement activity. This review presents an opportunity for APRA to strengthen further its supervisory toolkit and reinforce sound prudential outcomes,” Mr Lonsdale said.
APRA established the enforcement review in recognition both of new regulatory responsibilities under the Banking Executive Accounting Regime, as well as case studies examined by the Royal Commission.
The final Review will be presented to APRA Members by 31 March 2019. Following consideration of the Review’s recommendations, APRA expects to release publicly both the final review and APRA’s enforcement strategy.
Mr Lonsdale said the review will examine APRA’s current enforcement strategy and infrastructure and how it interacts with APRA’s core supervisory approach.
“The review will be a forward-looking examination of APRA’s approach to the use of its enforcement powers to ensure that financial promises made by supervised institutions are met within a stable, efficient and competitive financial system.
“APRA has taken a range of supervisory actions over many years but it is timely to examine whether APRA’s traditional approach – prioritising prevention and rectification – can be augmented by greater enforcement activity. This review presents an opportunity for APRA to strengthen further its supervisory toolkit and reinforce sound prudential outcomes,” Mr Lonsdale said.
APRA established the enforcement review in recognition both of new regulatory responsibilities under the Banking Executive Accounting Regime, as well as case studies examined by the Royal Commission.
The final Review will be presented to APRA Members by 31 March 2019. Following consideration of the Review’s recommendations, APRA expects to release publicly both the final review and APRA’s enforcement strategy.
Terms of Reference – Review of APRA’s approach to enforcement
Scope
1. The Review will conduct a forward-looking examination of APRA’s approach to the use of enforcement to achieve its prudential objective of ensuring that financial promises made by its supervised institutions are met within a stable, efficient and competitive financial system (the Review).
2. The Review will examine APRA’s current enforcement strategy and infrastructure, and in particular, how it interacts with APRA’s core supervisory approach. It will assess any legal, practical or structural impediments to APRA taking enforcement action where such action is appropriate.
3. The Review will make recommendations on:
a) the breadth of issues APRA seeks to address through public and non-public enforcement action;
b) the considerations in determining when APRA should take enforcement action to hold entities and individuals to account, including under the Bank Executive Accountability Regime (BEAR) and other powers;
c) the considerations in determining whether and when it may be appropriate for APRA to take public enforcement action, including litigation, to achieve general deterrence effects in appropriate cases; and
d) APRA’s internal governance, organisation, enforcement strategy, resourcing and any other factors relevant to APRA’s enforcement function.
Areas of focus
4. In examining the issues set out above, the Review will focus on:
a) the relationship between APRA’s supervisory approach and enforcement action;
b) APRA’s process for identifying candidate enforcement actions;
c) APRA’s decision-making process on whether to take enforcement action;
d) APRA’s approach to breach reporting and whistle-blowers;
e) the weight given to factors (including but not limited to cost, timeliness, remediation, precedential value) in determining whether to take enforcement action;
f) APRA’s approach to publicly disclosing enforcement priority areas;
g) whether internal organisational change would be required to achieve an appropriate level of enforcement action;
h) whether the resources and skill sets currently within APRA are adequate to achieve an appropriate level of enforcement action;
i) whether there is greater need for APRA to more closely cooperate with other regulatory agencies when dealing with enforcement-related matters;
j) whether the current and proposed legislative framework is adequate to support the recommended approach; and
k) any other relevant matters agreed by the APRA Members from time to time.
Timing
5. Draft recommendations will be available to APRA Members by 28 February 2019 with the final Review to be presented to the APRA Members by 31 March 2019.
Governance
6. The Review will be conducted by APRA Deputy Chair John Lonsdale and supported by APRA staff and external advisors as necessary. The APRA Members will be regularly informed on progress over the course of the review.
7. An external advisory panel comprising Dr Robert Austin (Former NSW Supreme Court Judge), Commissioner Sarah Court (Australian Competition and Consumer Commission) and Professor Dimity Kingsford Smith (Director of the Centre for Law, Markets and Regulation, University of New South Wales) has been appointed to provide an expert perspective on matters arising from the Review.
Appointments to the Future Fund Board of Guardians
The Coalition Government has reappointed the Hon Peter Costello AC as Chairman of the Future Fund Board of Guardians, as well as reappointed John Poynton AO and appointed John Fraser as members.
They join Ms Carolyn Kay, Dr Jane Wilson, Ms Erin Flaherty and Mr Michael Wachtel on the Board of Guardians.
Mr Costello was first appointed as a member of the Future Fund Board of Guardians in 2009 and as Chair in February 2014. Over that period, the value of Future Fund investments has grown from $67.6 billion to $148.8 billion or around 120 per cent. Prior to his appointment, Mr Costello served Australia with distinction as our longest serving Federal Treasurer from 1996 to 2007. As Treasurer, he delivered 10 Budget surpluses and oversaw the establishment of the Future Fund in 2006.
Mr Poynton brings more than 40 years of experience in the financial services industry to the Future Fund Board. He is currently Chair of Jindalee Partners P/L, a Non-Executive Director of Burswood Limited (Crown Perth), Chair of Strike Energy Limited and Executive Chair of Sabien Cyber Limited. Mr Poynton also previously served as a Director of the Export Finance and Insurance Corporation, a member of the Higher Education Endowment Fund Advisory Board and a member of the Payment Systems Board of the RBA.
Both Mr Costello and Mr Poynton will be reappointed to their respective positions for a period of five years from 4 February 2019.
The Government has also appointed Mr John Fraser to the Future Fund Board of Guardians for a period of five years from 12 November 2018. Mr Fraser was previously the Secretary to the Department of the Treasury for three-and-a-half years. In this role, he was also Chair of the Global Infrastructure Hub, a member of the Reserve Bank of Australia Board and a member of the Board of the Australian Council of Financial Regulators. He has also previously served as Chair and CEO of UBS Global Asset Management in London, for more than a decade. Mr Fraser has substantial experience and expertise at the highest levels of corporate business and public service. He has significant expertise in the management of investments in financial assets and corporate governance.
All three appointees will make a valuable contribution to the Future Fund Board.
Victoria CBD Stabbings Terror Related
A stabbing incident in the CBD this afternoon that has left one person deceased is being treated as terror related at this stage.
Emergency services responded to reports of a car fire in Bourke Street about 4.10pm.
As police officers got out of their vehicle, they were confronted by a male who began a physical altercation with them.
The man fled on foot and was chased by police, he then lunged at police with a knife.
Police shot the 30-year-old and he was taken to hospital in a critical condition but he has since died.
The man was known to Victoria Police and federal intelligence authorities by way of his family associations.
Three men were stabbed during the incident.
One man, who is yet to be formally identified, died at the scene.
A 24-year-old and a 58-year-old have been taken to hospital with non-life threatening injuries.
A police officer was treated for a minor injury at the scene.
The Bomb Response Unit attended and have deemed the burnt vehicle safe and a crime scene has been set up.
Road blocks in the area are expected to remain in place throughout the night and members of the public are asked to avoid the area on Bourke Street between Russell and Swanston Streets.
Counter Terrorism Command in conjunction with the Homicide Squad will investigate the incident but police do not perceive any ongoing threats at this stage.
There will be an increased police presence around the CBD and at major events in the coming days so the public can feel comfortable going about their business.
If members of the public have images or video footage that may assist police with their investigation into the incident, they are encouraged to upload them here → https://vpupload.fotoware.com.au/
Anyone with information is also urged to contact Crime Stoppers on 1800 333 000 or submit a confidential crime report online at www.crimestoppersvic.com.au
Members of the public who witnessed the event and wish to make a statement are asked to attend Melbourne West Police Station at 313 Spencer Street, Melbourne.
Vic Bourke Street Incident Possibly Terrorism Related
Police are currently at an incident on Bourke Street in the Melbourne CBD. Police 
initially responded to a report of a car on fire near the corner of Swanston Street about 4.20pm. A man was arrested at the scene and has been taken to hospital under police guard in a critical condition. Police are not looking for anyone further at this early stage. A small number of people are being treated for stab wounds.
The exact circumstances are yet to be determined at this stage. The area has been cordoned off and the public are urged to avoid the area. Anyone with information or who witnessed the incident is asked to go to Melbourne West Police Station to make a statement. We will provide further information when it comes to hand.
FEDERAL LABOR WILL UPGRADE KALAMUNDA HOSPITAL
A Shorten Labor Government will deliver better palliative care for the people of Perth with a major upgrade to the Kalamunda District Community Hospital.
Western Australia has pressing need for more palliative care, as confirmed by a WA Parliamentary Inquiry earlier this year.
With this $7.6 million investment from Federal Labor, Kalamunda will be transformed into a Palliative Care Centre of Excellence – expanding and improving its services to ensure more people get the post possible care at the end of their lives.
This Palliative Care Centre of Excellence will improve the quality of life of both patients and their families, through the prevention and relief of suffering.
The 39-bed facility at Kalamunda has played a vital role in the community for more than 40 years – but upgrades to its buildings and amenities are desperately needed to ensure patients can continue to receive the highest standard of care.
The redevelopment will include upgrades to facilities, to ensure patients entering the end of their life are cared for in a comfortable and modern environment.
The upgrades will include:
- New infrastructure like ceiling hoists to support comfortable movement of patients;
- More private bathrooms;
- Family facilities for partners, carers and children to sleep over and refresh;
- Development of family rooms where partners can co-sleep during late end of life; and
- Courtyard landscaping to provide a peaceful and external environment for patients and families.
The funding will also provide for the installation of a new ICT system to support those patients unable to travel through the use of telehealth services.
Some of the funding will also provide for the refurbishment of the Day Procedure area of the hospital to a contemporary standard.
These improvements will help future proof the hospital and ensure it can continue to deliver high-quality end of life care for many years to come.
Labor is committed to improving palliative care across the country to ensure all Australians are afforded the comfort, dignity and privacy they need in their final days.