What does British American Tobacco say about sales volumes in Australia?

Thu, 19 Jun 2014  |  

The Australian's campaign to torture and misrepresent the data on the volume of tobacco consumed in Australia seems to have had a final nail in the coffin with news from British American Tobacco, no less, that sales volumes in Australia are falling.

In their annual report which covers the period up to 31 December 2013, the BAT report notes:

"Australia:
Profit was up strongly as a result of higher pricing and cost saving initiatives, partially offset by lower volume."

What was that?

BAT saying "lower volumes"?

Oh I see. The volume of tobacco sold by BAT was lower in 2013, a picture that dovtails perfectly with the data from the Australian Bureau of Statistics. Who would have thought that?

Certainly not The Australian writers Christian Kerr, Adam Creighton, Henry Ergas, Judith Sloan, Sinclair Davidson, Chris Merritt, The Editorial writer or the person who puts together the cheeky Cut and Paste column.

See BAT annual report, page 32:  

http://www.bat.com/ar/2013/assets/pdfs/BAT_AR2013.pdf 

 

comments powered by Disqus

THE LATEST FROM THE KOUK

Be careful what you wish for in the Canning by election

Sat, 22 Aug 2015

Every pundit and their dog are saying the result of the Canning by election on 19 September will be vital in determining whether or not Tony Abbott remains Prime Minister through to the next general election.

A small swing against the Liberal Party, say 4 or 5 per cent (or less) would be a great result for them and shore up Mr Abbott’s position. A swing of 8 or 9 per cent (or more) against the Liberal Party of Mr Abbott is toast.

Here is a dilemma for both sides.

There are many in the Liberal Party who are desperate to see Abbott go so that a new leader, Mr Turnbull or Mr Morrison, could lead them to the next Federal election with a policy clean slate and a renewal of the Ministry, especially in Treasury. Their secret wish would be to see a Liberal Party blood-bath in Canning and for this to be the catalyst for a change in leader. Their incentive is to boost Labor’s vote. Some Liberal members might even vote Labor in Canning to make sure Abbott is gone before Christmas.

The Labor Party, on the other hand, know they will win the next Federal election if Mr Abbott remains Prime Minister. They reckon, on the other hand, that they will be soundly beaten by a rejuvenated government lead by Mr Turnbull, for example, and there are secretly hoping that the Canning result is not so bad to see Mr Abbott replaced. The incentive of these Labor people with a longer time horizon and a bigger prize in mind is to vote Liberal in Canning, minimising the swing and see Mr Abbott remain in the top job.

Housing affordability should include interest rates

Tue, 18 Aug 2015

This article first appeared in the Adelaide Review at this link: http://adelaidereview.com.au/features/business-finance/flawed-analysis/#.VdKzB6-Z0jh.twitter 

 

Any analysis that does not take account of the level of interest rates in the measurement of housing affordability is flawed.

In a very simple stylised example, is a $500,000 house with a $400,000 mortgage more affordable if the mortgage interest rate is five percent or eight percent?

The answer is, of course, rather straightforward. The annual interest cost with a five percent mortgage interest rate is $20,000 while an eight percent interest rate sees the annual interest payments jump to $32,000. That $12,000 a year difference is substantial and is clearly a factor when potential borrowers are looking to take out a loan. Blind Freddie can see that a decision to borrow money and buy a house is hugely enhanced in a low interest rate climate versus one where interest rates are high.