Obama to hand back five per cent of salary

US President Barack Obama speaks to members of the Business Council about the possible effects of the upcoming sequester's budget cuts on the business community. Source: AFP

US President Barack Obama plans to return five per cent of his $US400,000 annual salary to US government coffers out of sympathy for federal workers furloughed as a result of massive budget cuts.

"The salary for the President, as with members of Congress, is set by law and cannot be changed," a White House official said today on condition of anonymity.

"However, the President has decided that to share in the sacrifice being made by public servants across the federal government that are affected by the sequester, he will contribute a portion of his salary back to the Treasury."

Mr Obama will cut cheques every month to account for the impact of the budget cuts, known as the sequester, which came into force on March 1.

The White House has warned that thousands of federal government workers could be furloughed, see salaries hit or even be laid off because of arbitrary budget cuts of $US85 billion.

The measure came into force because Mr Obama and Republican lawmakers were unable to agree a deal on cutting the US budget deficit.

Mr Obama is said to have chosen the five per cent figure as it is equal to the cut being inflicted on non-exempt, non-discretionary government spending.

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Fairfax reshuffles media divisions

Fairfax Media chief executive Greg Hywood. Picture: Ray Strange Source: The Australian

FAIRFAX Media is reorganising its operations into five business arms as it continues its massive restructure program.

Fairfax is also reshuffling its executive team, with the head of its New Zealand operations, Allen Williams, appointed to head the group's Australian publishing media division.

Fairfax's Australian publishing media division will incorporate The Sydney Morning Herald, The Age and The Financial Review newspapers as well as the group's regional, agricultural and community titles.

Chief executive Greg Hywood said the formation of the division would simplify how Fairfax did business and reduce bureaucracy.

"We have already integrated our print and digital activities in the Metro division, making us a genuine multiplatform media company," Mr Hywood said. "The next phase of our transformation is to deliver the full potential of our Australian news, business, lifestyle and community media businesses."

Metro Media chief executive Jack Matthews will leave Fairfax following a transition to the new structure.
Regional publishing head Allan Browne will also leave the company.

Mr Hywood said Mr Matthews, who was at Fairfax for seven years, had driven the company's shift to being an integrated multi-media company.

"Jack has told me that he has achieved all he set out to at Fairfax Media and it's time for his next challenge," Mr Hywood said.

Fairfax's other divisions will be Domain, incorporating the print and online real estate operations; Digital Ventures, including the Stayz, RSVP and Tenderlink businesses; and Fairfax Radio and Fairfax New Zealand, both of which remain unchanged.

Within Australian Publishing Media, former Financial Review Group chief executive Brett Clegg will head a broader Business Media division.

No job cuts have been announced today but the statement from Fairfax said the restructure was intended to "drive revenues and efficiencies", indicating some job losses may flow in the future. 

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Family sector welcomes new focus

Family business appears headed for a clearer and brighter future. Source: Supplied

FAMILY business advocates have welcomed a government report into the sector that followed a seven-month inquiry.

The first of 21 recommendations of the parliamentary joint committee is to establish a broader "Inter-Departmental Committee" to examine issues facing family businesses, including the need for a distinct definition and official data, plus future transfers or closures as Baby Boomers retire during the next decade.

"At last family business as a sector is generating awareness," says Family Business Australia chief executive Philippa Taylor.

"Government has been so abysmally ignorant of the sector and tended to lump it in with small business. Recognition of it as a discreet sector is a dramatic step forward.

"Research from overseas is showing us that family businesses have a 30 per cent better return than non-family firms. We need to research that here in Australia. We need some hard data."

Deloitte Private tax partner David Pring says the report recognises that family business is a vital part of the economy.

"We absolutely welcome the view that the data will be collected," he says.

"Family business will now get a voice."

Pring says another positive feature is family trust reform.

"The report recognises there are legitimate non-tax reasons for family trusts, and that it's not just simply a tax minimisation plan."

However, he says the report was "quite short-sighted" about tax reform.

"There was an opportunity to recommend a simpler tax platform for private businesses, but they haven't gone that far."

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Family sector welcomes new focus

Family business appears headed for a clearer and brighter future. Source: Supplied

FAMILY business advocates have welcomed a government report into the sector that followed a seven-month inquiry.

The first of 21 recommendations of the parliamentary joint committee is to establish a broader "Inter-Departmental Committee" to examine issues facing family businesses, including the need for a distinct definition and official data, plus future transfers or closures as Baby Boomers retire during the next decade.

"At last family business as a sector is generating awareness," says Family Business Australia chief executive Philippa Taylor.

"Government has been so abysmally ignorant of the sector and tended to lump it in with small business. Recognition of it as a discreet sector is a dramatic step forward.

"Research from overseas is showing us that family businesses have a 30 per cent better return than non-family firms. We need to research that here in Australia. We need some hard data."

Deloitte Private tax partner David Pring says the report recognises that family business is a vital part of the economy.

"We absolutely welcome the view that the data will be collected," he says.

"Family business will now get a voice."

Pring says another positive feature is family trust reform.

"The report recognises there are legitimate non-tax reasons for family trusts, and that it's not just simply a tax minimisation plan."

However, he says the report was "quite short-sighted" about tax reform.

"There was an opportunity to recommend a simpler tax platform for private businesses, but they haven't gone that far."

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Sweet tooth bites the corner store

Aussies are turning away from classics like the meat pie in favour of picking up lollies and choccies at service stations, a new study shows.  Picture: Campbell Brodie Source: adelaidenow

SUPERMARKET servos - those petrol station and convenience stores - are eating away the market of the traditional corner store, and a lot of what's being eaten is chocolate.

Supermarket servos - often bearing a Coles or Woolworths logo - increased by almost 300 to an estimated 3,450 in the past two years, new research has found, while petrol-only outlets and corner stores are dwindling.

The big driver of the change has been food and drink offerings, with spending on sweets and snacks shifting to supermarket-owned outlets, according to a new report from researcher BIS Shrapnel.

BIS Foodservice head Sissel Rosengren said the value of corner store trade fell from $754 million in 2010 to $613 million in 2012 and that independent convenience store numbers fell by 1406 to 2725 nationwide in the same period.

At the same time, the number of Woolworths/Caltex supermarket servos rose from 611 stores to 848.

"The demise of the corner store is a fact," Ms Rosengren said.

"We fully expect this decline to continue due mainly to the rise in the number of supermarkets and convenience stores attached to service stations."

The researchers also found that Aussie fast-food tastes had shifted away from the iconic meat pie and sauce towards chocolates and lollies.

Despite a post-GFC slump in impulse spending, confectionery sales at service stations, corner stores and other so-called "route trade" outlets grew by 19 per cent from 2010 to 2012 to $711 million.

Chocolate accounted for nearly two-thirds of that spending.

"This is typical consumer behaviour during tougher and uncertain economic times," Ms Rosengren said.

"Chocolates can be small and inexpensive, and we like to reward ourselves every now and then with a little treat."

Meat pies still lead in the baked goods category but sales have fallen nine per cent since 2010.

Sales have also slipped for ice creams and other snack foods, but sausage rolls and cakes recorded increases of four per cent and 14 per cent respectively.

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Belt tightening Aussies giving up the pies

Aussies are ditching meat pies as they try and save money. Picture: Brodie Campbell Source: adelaidenow

THE humble meat pie or sausage roll from the corner store has become the latest victim of cautious economic times.

Instead, we might treat ourselves to a chocolate bar as a "cheap and cheerful instant reward" to have with our home-made lunch.

Confectionary sales in convenience stores and petrol stations have climbed 19 per cent since 2010 while sales of baked goods have fallen nine per cent, according to an industry report by BIS Shrapnel.

"In these past two years we have seen a jump in chocolates and lollies which is very much a recessionary reaction," said head of BIS Foodservice Sissel Rosengren.

"It is because chocolates are a cheap way we can reward ourselves quickly.

"At the same time there has been the decline of the pie purchase at the convenience store because they can't compete with supermarkets and quick service restaurants."

Social researcher and statistician Charlie Nelson said "falling out of love with credit cards", unemployment prospects and losses sustained during the GFC had an impact on discretionary spending.

"A lot of these people are very, very determined to build their savings," he said.

"People are realising it's a couple of bucks a day but every year it's a few hundred bucks.

"People are feeling now that they have less money left over from meeting all their commitments than they did a year or two ago.

"You put all these things together, you don't like plastic any more, people are keen to save money, and concerns about unemployment, it's no wonder people are looking at ways to cut back on things."

Ms Rosengren said service station convenience stores had also grown, with their total market value almost tripling since 2010 helping squeeze out old-fashioned corner stores which are unable to compete with them, in addition to battling supermarkets and fast food outlets.

"The cost of living and the cost of food in this country has gone up astronomically since 2005," Ms Rosengren said. "It's a tough retail market out there and that is part of the reason behind the demise of the corner store."

Confectionery sales in the "route trade" market have grown 19 per cent since 2010 to $711 million with chocolate accounting for two-thirds of that at $457m.

Despite a 5 per cent drop in sales since 2010, drink sales still make up 59 per cent of the market worth $1.9 billion annually.
 

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Sweet tooth bites the corner store

Aussies are turning away from classics like the meat pie in favour of picking up lollies and choccies at service stations, a new study shows.  Picture: Campbell Brodie Source: adelaidenow

SUPERMARKET servos - those petrol station and convenience stores - are eating away the market of the traditional corner store, and a lot of what's being eaten is chocolate.

Supermarket servos - often bearing a Coles or Woolworths logo - increased by almost 300 to an estimated 3,450 in the past two years, new research has found, while petrol-only outlets and corner stores are dwindling.

The big driver of the change has been food and drink offerings, with spending on sweets and snacks shifting to supermarket-owned outlets, according to a new report from researcher BIS Shrapnel.

BIS Foodservice head Sissel Rosengren said the value of corner store trade fell from $754 million in 2010 to $613 million in 2012 and that independent convenience store numbers fell by 1406 to 2725 nationwide in the same period.

At the same time, the number of Woolworths/Caltex supermarket servos rose from 611 stores to 848.

"The demise of the corner store is a fact," Ms Rosengren said.

"We fully expect this decline to continue due mainly to the rise in the number of supermarkets and convenience stores attached to service stations."

The researchers also found that Aussie fast-food tastes had shifted away from the iconic meat pie and sauce towards chocolates and lollies.

Despite a post-GFC slump in impulse spending, confectionery sales at service stations, corner stores and other so-called "route trade" outlets grew by 19 per cent from 2010 to 2012 to $711 million.

Chocolate accounted for nearly two-thirds of that spending.

"This is typical consumer behaviour during tougher and uncertain economic times," Ms Rosengren said.

"Chocolates can be small and inexpensive, and we like to reward ourselves every now and then with a little treat."

Meat pies still lead in the baked goods category but sales have fallen nine per cent since 2010.

Sales have also slipped for ice creams and other snack foods, but sausage rolls and cakes recorded increases of four per cent and 14 per cent respectively.

View the original article here