Hastie says US alliance has eroded Australia 'sovereign capability'
The Liberal frontbencher Andrew Hastie has stated that Australia's increasing reliance on the United States has undermined the country's sovereign capabilities, including its defence industry. He emphasized the need for Australia to "get serious" about national security to restore balance in the alliance.
Speaking at the Robert Menzies Institute in Melbourne, the shadow minister for industry and sovereign capability highlighted that dependence on the US has led to "strategic trade-offs" accelerating Australia's deindustrialisation and diminishing its "hard power." He noted that this reliance has cost Australia "sovereign capabilities like a robust defence industry" and "strategic freedom of action," which are becoming evident amid the ongoing Middle East conflict.
Hastie remarked that under former US President Donald Trump, Australia "should not be expected to guarantee much except its own strategic interests," necessitating a renewed focus on national security by rebuilding Australia's industrial base and developing a defence force "with teeth."
"To put it bluntly, if Anzus is going to continue for another 75 years, we need to invest in our industrial base and our defence force."
The former soldier has been a vocal critic of Trump and his approach to the war in Iran, presenting a stance that contrasts with that of opposition leader Angus Taylor.
Good morning, Nick Visser here to take the reins and guide us through Friday. Let’s get to it.
Court hears Woolworths planned price hikes and subsequent drops
During cross-examination by the Australian Competition and Consumer Commission's (ACCC) barrister, Michael Hodge KC, Stuart Robinson, Woolworths’ category manager for baby products, admitted that the supermarket had planned for the elevated short-term price of $6.50 to become the product’s "was" price before the change was implemented.
Robinson also acknowledged that Woolworths negotiated profit margins with the supplier based on the third "Prices Dropped" price of $6.
The court reviewed the promotional plan for the baby rice product from 2022, which indicated that the number of weeks the product would be sold at the new shelf price of $6.50 was "zero," while it would be sold at $6 for 52 weeks.
Woolworths denies the ACCC’s allegation that it inflated prices solely to create a higher "was" price, thereby misleading customers into believing they were receiving a discount.
Sam Woodcock, who has held management roles at Woolworths for over nine years, also testified.
Woodcock conceded that Woolworths had planned price increases followed by reductions promoted as discounts in negotiations with suppliers.
"Essentially if a supplier proposes a cost price increase to be effective from a certain date and we don’t accept that as a retailer, there’s a risk that … that a supplier will choose not to supply us that product anymore,"
he told the court.
Woolworths gives evidence about price changes in ACCC case
The trial between the ACCC and Woolworths continued in federal court in Melbourne, examining allegations that the supermarket disguised price increases on hundreds of products between 2021 and 2023.
Stuart Robinson gave evidence regarding Nestlé Cerelac baby rice, one of 12 products under detailed scrutiny in the trial.
According to court documents, Woolworths’ long-term shelf price for the product was $5. The price was then increased to $6.50 for 22 days before being reduced to a new long-term price of $6.
The supermarket promoted the $6 price as a "Prices Dropped" discount on the product’s ticket, alongside the higher "was" price of $6.50.
Robinson admitted that the agreed "was" price of $6.50, which was advertised in stores, was higher than any price Woolworths had previously charged for the product at that time.
Hackers steal US$2.5m owed to Australia from Sri Lankan finance ministry
Cybercriminals have infiltrated the Sri Lankan finance ministry’s computer system and stolen US$2.5 million, according to reports from Agence France-Presse.
This represents the largest amount of cash ever stolen by hackers from a state institution in Sri Lanka, a country recovering from a severe economic crisis in 2022 after defaulting on its US$46 billion external debt.
The stolen funds were intended as a debt repayment to Australia, the finance ministry secretary, Harshana Suriyapperuma, informed reporters in Colombo.
Following the breach, four senior officers at the Public Debt Management Office (PDMO) were suspended.
Authorities were alerted to an attempted breach of the ministry’s email server, and investigations revealed that the US$2.5 million payment owed to Australia had been diverted.
"Criminal investigators are looking into this and we are not in a position to give further details,"
Suriyapperuma said, adding that Sri Lankan authorities are seeking assistance from foreign law enforcement agencies.
Australia’s high commissioner in Sri Lanka, Matthew Duckworth, confirmed Canberra’s awareness of "irregularities" in payments owed to it.
On X, Duckworth stated:
"Sri Lankan authorities are investigating the matter and are coordinating with Australian officials, who are assisting the investigation."
"Australia remains committed to supporting Sri Lanka’s return to debt sustainability."
Additional news and updates
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories before Nick Visser guides you through to the holiday weekend.
Andrew Hastie has asserted that doubling down on the US relationship has eroded Australia’s sovereign capability, including its defence industry, and has called for a more serious approach to national security to rebalance the alliance.
In other news, at least two children have been treated in hospital following dingo attacks in recent days at the same remote Western Australian campground. Further details will be provided shortly.
Additionally, hackers have breached the Sri Lankan finance ministry’s computer system and stolen $2.5 million intended as a debt repayment to Australia. More information on this incident will be shared soon.
