Waching daily Jun 17 2018

US-China trade tariffs could spell trouble for Australian miners

Analysts say the uncertainty following news of United States-China tariffs could cause issues for miners in Australias biggest export state.

Bell Potter Securities Giuliano Sala Tenna said the tariffs may mean future decisions on large mining projects are paused because of the level of uncertainty in the global economic environment.

We do know that investors do like to see a more stable international environment of policy which is more predictable so that they have a better set of parameters to make that decision on.

WA business analyst Tim Treadgold said the new tariffs would have a knock-on effect on the states mining exports.

Its a sort of knee bones connected to the thigh bones job, he said.

If the United States says to China, you cant send us any more steel, that says to China we dont need to buy any more iron ore from Australia.

But he said it was still too early to know how much of that impact will be felt by WAs big miners.

If the two biggest economies in the world declare a trade war, demand for commodities of the sort we export will decline, he said.

The tariffs may mean future decisions on large mining projects are paused because of the level of uncertainty in the global economic environment, according to Mr Sala Tenna said.

We do know that investors do like to see a more stable international environment of policy which is more predictable so that they have a better set of parameters to make that decision on.

Tariffs unlikely to buoy beef trade with China.

The WA Pastoralists and Graziers Association has downplayed the potential benefit to meat exporters, after news China would impose additional tariffs on US agricultural products.

PGA president Tony Seabrook said while in the short term it may benefit alternative suppliers like Australia, he expected trade tensions between the US and China to resolve too quickly for the local beef industry to see a longer-term benefit.

Mr Seabrook said producers would be reluctant to commit a lot of capital to developing trade with China because the tariffs may be only be a short term blip.

Theres an enormous lobby in America on behalf of agriculture, he said.

Trump has done a few things in the past that have denied American farmers access to Asia, and the pressure will build very quickly.

WA Agriculture Minister Alannah MacTiernan said there would be challenges navigating potential opportunities in beef markets in China until there was a better sense of how long the new rules would last.

If this is just going to be short term, you … cant lose your other markets which you have built up and which are stable, Ms MacTiernan said.

But she said Chinas tariffs on American pork were bad news for local producers.

We might find ourselves in a [worse] position because we cant export into China, and yet therell be a lot of American product looking for other markets and that means that drives prices down, she said.

A global oversupply of pork means demand has been low, and the overflow of US pork could hit already struggling local producers.

For more infomation >> US-China trade tariffs could spell trouble for Australian miners - Duration: 4:52.

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Hobart rust bucket bought for one dollar preparing for relief voyage to the Philippines - Duration: 9:05.

Hobart rust bucket bought for one dollar preparing for relief voyage to the Philippines

On Hobarts Derwent River, an old and rusting ship is docked in the state-owned port.

Its set to be sold to Anna McDougall for one dollar.

Ms McDougall was born into a life of poverty in the Philippines and looks up at the Corvina as she talked about her goal to sail it to the Philippines.

I want to get out of here and start my work, start helping people in the Philippines, especially in the remote islands, she said.

Its a dream thats been almost five years in the making.

Ms McDougall and her husband Malcolm contacted TasPorts about buying old tug boats, when the old fishing vessel was first pointed out to them back in 2013.

They said they have this rust bucket thats available to tour in the Philippines, Ms McDougall explained.

Shortly afterwards Typhoon Haiyan hit the Philippines, killing more than 6,000 people.

Because of that I said: I have an idea Malcolm, if TasPorts is really interested in getting that boat out of the port I have an idea of doing it as an aid vessel.

After a difficult childhood in the Philippines, Ms McDougall knew how much people would be struggling following the typhoon.

I remember when I was six years old our house was broken by a disaster like the typhoon, so we are all wet, our clothes is wet, everythings wet.

So to protect ourselves we had to sleep under the table.

When she was 11 Ms McDougall father died and she became the main supporter of the family and struggled to get enough food to feed her siblings.

Because of that reason, that I am one of these children that we are talking to now, I am really interested to help them, she said.

The ship is already being filled with donations and after sailing it to the Philippines, Ms McDougall plans to leave it there to be used as an aid ship and as a training vessel at a maritime college.

So that basically this is an aid vessel with maritime training students on board, she said.

Years of work.

In order to fundraise for the ships repairs, the McDougalls created the not-for-profit project Philippines Australia and have been doing everything from art auctions to sausage sizzles.

But trying to get the Corvina into shape to make the trip to the Philippines has been no easy feat.

Malcolm McDougall admits he didnt think it would be as big a task as it has ended up.

I thought it was going to be a lot easier, he said.

But like they say, sometimes a little bit of ignorance helps you on your way because if you know everything it wont happen.

So you just take each challenge as it comes and keep working through it.

Volunteers have completed most of the repairs done to date, but there is more work needed.

We want to get to the Philippines to do the major work, but to get her up there we just want servicing of the engines and fit the bridge equipment thats needed and just make sure everything is up and running for a one way trip, Mr McDougall said.

The ship will also need about $100,000 worth of fuel to make the trip.

Despite the long road, Malcolm McDougall is confident the Corvina will make it to the Philippines.

Im very confident because I know that Anna wont give up, she really believes in her dreams and she really wants to pursue it and she has all good reason to do it, he said.

So Im very confident but we do need the help of the public.

Throughout it all TasPorts had continued to provide a free berth for the ship and had offered to sell the vessel to Project Philippines for a token fee of $1, once safety requirements were met.

TasPorts hopes Project Philippines can speedily secure the future of Corvina so it can undertake its new venture while freeing up the berth at Macquarie Point for other port users, it said in a statement.

Hobart high school to donate uniforms.

The Corvina is already filing up with donations including hospital beds, clothing and educational supplies.

Im really pleased and Im really happy that we have a lot of generous Tasmanians, Australians, who really help me through this, Ms McDougall said.

A set of school uniforms is also set to be added to the donations onboard.

Two years ago the Rokeby High School in Hobart was rebranded and became Bayview College, the change meant there was a number of uniforms that had never be worn but could no longer be used.

Project Philippines approached the school after hearing about the name change and now the uniforms are being boxed up ready to be put on the ship.

Its worked out really well and were really pleased to helping and doing something positive by giving back, principal Gill Berriman said.

I think the students will be really pleased that their uniforms have gone to such a good cause.

Ms Berriman said she hoped the exchange would also open students eyes to the lives of less fortunate people in the region.

I think to connect and actually understand a bit more about the culture and the school over there will be a really important thing for the students, she said.

Hopes that this is the year.

The McDougalls recently flew to the Philippines to meet with schools, World Vision and the ship yard where they hope the Corvina will end up.

The trip was paid for out of their own money as Project Philippines continues to save for ship repairs.

Among her supplies, Ms McDougall took samples of the old Rokeby High School uniforms and has already found a school that wants them.

At the airport before boarding the plane for her homeland, she said she was confident this would be the year for the ship to set sail.

I believe that the boat is going to head off the the Philippines this year, so Im really happy for that, she said.