THE NEWS WRAP: Gillard launches Business Advisory Forum

The Gillard government has set up a formal advisory group that will analyse the amount of red tape that small businesses have to deal with.

Prime Minister Julia Gillard will chair the inaugural Business Advisory Forum next month, which will feature about 25 business representatives.

Business lobby groups have welcomed the move, with Business Council of Australia president Tony Shepherd saying: “The different rules and regulations in our nine federal, state and territory jurisdictions are a major drag on our economy and a huge cost to business and consumers.” 

Retailers question RBA rates decision

Businesses in the housing and retail sectors have questioned the Reserve Bank’s decision to keep interest rates on hold yesterday.

The RBA kept its cash rate at 4.25%, prompting industry representatives to call for further action to spur consumer confidence and lift spending.

Rinehart requests Fairfax board seat

Mining magnate Gina Rinehart has requested a seat on the Fairfax Media board, according to reports.

The Australian Financial Review said Rinehart wants to increase her influence within Fairfax, in which she has a 12.58% stake. The move came as Rinehart lost a second bid to supress details of a court battle with her children.

Overnight

The Dow Jones industrial average was down 218.30 points, or 1.68%, at 12,744.51. The Australian dollar fell to 105.30 US cents.