Category: Economy

  • MIL-OSI China: Guangzhou gears up for low-altitude unmanned aircraft operations

    Source: China State Council Information Office

    Unmanned aerial vehicles will start commercial operation in 2025, with more low-altitude aircraft entering the airworthiness certification and pilot application stage in Guangzhou, the capital of Guangdong province, according to Chen Tengfei, a deputy to the annual local legislative meeting, on Thursday.

    “Construction of airworthiness certification and flight test service infrastructure and creating demonstration application scenarios play an important role in industrial development,” said Chen, who is also chief designer at EHang Holdings Limited, one of the world’s leading urban air mobility technology companies.

    Chen noted that expanding test infrastructure and developing more application scenarios will enable the sector to thrive, driving industrial expansion and contributing to high-quality economic development.

    EHang obtained a Type Certificate and Standard Airworthiness Certificate for its EH216-S model unmanned aircraft from the Civil Aviation Administration of China in April 2024, becoming the first company ever to do so.

    Guangzhou formulated a regulation on the development of the low-altitude economy in 2024, which has given enterprises related to the industry confidence in future growth, according to Chen.

    “Companies in the low-altitude industry need more support in areas with clear scenarios and relatively fixed routes, such as urban management, healthcare, logistics, emergency rescue and air travel,” Chen said while citing a suggestion to the annual local legislative meeting.

    MIL OSI China News

  • MIL-OSI United Kingdom: CoSTAR Realtime Lab at Water’s Edge in Dundee will provide a major stimulus to Scotland’s screen and tech industries

    Source: University of Abertay

    CoSTAR Realtime Lab at Water’s Edge in Dundee will provide a major stimulus to Scotland’s screen and tech industries

    A new £9m virtual production studio will drive research, innovation and economic growth in Scotland’s screen, games, immersive and performance industries.

    Abertay University launched the CoSTAR Realtime Lab at Water’s Edge, Dundee on Tuesday 18 February marking the start of operations for a major infrastructure project that will provide a significant boost to Scotland’s screen industries.

    This cutting-edge programme will bring new opportunities and expert support to UK creative and technology companies working across the breadth of the creative industries.

    The CoSTAR Network represents the largest investment in Creative Industries R&D to date with a £75.6M grant awarded by the UKRI Infrastructure Fund and delivered by the Arts and Humanities Research Council.

    The CoSTAR Realtime Lab is led by Abertay University and the total project investment is £9m operated in partnership with the University of Edinburgh, CodeBase, Interface and Chroma Developments.

    Industry and academia working in partnership

    Creative companies from across the UK and beyond will have the opportunity to work with the CoSTAR Realtime Lab, benefitting from state-of-the-art research and development (R&D) facilities and access to industry experts and academic researchers.

    The studio at Chroma Developments’ Water’s Edge in Dundee marks the beginning of the CoSTAR Realtime Lab’s work, with a further studio led by the University of Edinburgh to open at First Stage Studios in Edinburgh in March 2025. The facilities will be connected through the Realtime Cloud Lab supporting remote access and collaboration from anywhere in the world.

    Virtual production—a cinematography technique that employs computer-generated imagery (CGI), augmented reality, and motion capture to create immersive virtual film, game and performance sets – will be at the heart of the CoSTAR Realtime Lab’s work and represents a significant opportunity for creative companies working with real time technologies.

    Researchers will support industry-led projects to generate new products and processes to improve production pipelines including, 3D environments and video processing, performance and motion capture, facial animation, automated speech and dynamic generation of hyper-realistic digital film sets and many others. The CoSTAR Realtime Lab’s work will also look at ways to enhance spectator experiences at concerts, live events and museums and how immersive technologies like Augmented Reality and Virtual Reality can be better used and integrated.

    Blending Abertay University’s internationally renowned expertise in video games and technology with the University of Edinburgh’s world-leading AI, animation and film capabilities, the partnership will build transformative new processes, pipelines, tools and workflows to help companies grow, while de-risking opportunities to diversify and take on new projects and clients.

    Supporting creators and creative companies

    The CoSTAR Realtime Lab will create opportunities for Scotland’s screen innovators to access next generation production technologies and support them to apply their creativity, skills and expertise to create new technologies, design new experiences and establish new markets. Access will be offered through a series of open programmes, giving companies and creatives the opportunity to test, develop and refine their ideas.

    One of the main programmes is the Realtime TEST Lab, which offers creative companies, creatives and innovators access to resources to experiment with virtual production and creative technologies in content production or software development before committing further investment in their final productions. The Realtime TEST Lab is supported with funding from Screen Scotland.

    The CoSTAR Realtime Lab will also offer support through Collaborative R&D – a way of working in partnership that can be activated by companies, individuals and project staff in conversation with the CoSTAR Realtime Lab. Scale-up and start-up training and support will also be provided by CodeBase through its Techscaler programme.

    Further CoSTAR Network programmes include the Pilots and Prototypes Programme (PPP), a £3.6 million fund for UK companies to develop new ideas by accessing technical and research capabilities, and the Enterprise and Commercial programme (E&C) supporting the growth of highly capable, inclusive, and sustainable creative technology businesses.

    In addition to its main partners, CoSTAR Realtime Lab is supported by Screen Scotland, Scottish Enterprise, Amazon Web Services, Nvidia and VSS-Scotland.

    Professor Gregor White, Director of the CoSTAR Realtime Lab said:

    With the technologies that power our screen-based experiences in film, games and performance rapidly converging there’s an opportunity for companies working in these sectors to diversify their offer, explore new markets and push the boundaries of what was previously thought possible in their sectors. Bringing together international-quality academic researchers with industry experience and enterprise support, CoSTAR Realtime Lab is a truly collaborative project which will break down barriers for the Scottish creative industries, encourage entrepreneurship and experimentation, and provide a space where innovation can flourish.

    Professor Melissa Terras MBE, Edinburgh College of Art, Co-director of the CoSTAR Realtime Lab said:

    Scotland has vibrant creative industries, with world-leading activity in festivals, film/TV, music, heritage, and games in particular. Building a bridge between creatives and technologists will allow us to support the development of new products and services, while also ensuring that we are encouraging diverse access to cutting edge facilities, which will then produce diverse outputs. The partnership behind CoSTAR Realtime Lab is expertly placed to deliver this exciting innovation vehicle to support our creative communities.

    AHRC Executive Chair Professor Christopher Smith said:

    The CoSTAR Realtime Lab will build on the strong foundations of Scotland’s gaming cluster, bringing together next generation production technologies, the latest in video game development, and AI and machine learning, to support innovators in the creation of new technologies, experiences, and markets. As part of the CoSTAR network it will play a key role in ensuring that the UK’s creative industries act as a key driver of growth as identified in the government’s industrial strategy. It is by strategically investing in the industries of the future that AHRC shows how arts and humanities research drives innovation and growth in a 21st century economy.

    Chris van der Kuyl CBE, FRSE, Chairman, 4J Studios said: 

    I’ve always believed in Dundee’s potential as a global leader in technology and digital innovation. That’s why we’ve invested in spaces like Water’s Edge to provide a collaborative infrastructure for the next generation of creators and companies to thrive. The launch of the CoSTAR Realtime Lab is a major step in that journey, bringing cutting-edge virtual production technology to Dundee and securing its position at the forefront of real-time content creation. This is a huge opportunity for Scotland’s screen industries, and I’m incredibly proud to support it.

    UK Government Scottish Secretary Ian Murray said:

    This project is beyond exciting – the possibilities it creates for the entertainment industry are endless. The UK Government’s investment in cutting-edge initiatives like this is central to our Plan for Change to create the jobs and opportunities that will raise living standards right across the UK. “It’s a tremendous feather in the cap of Brand Scotland too, demonstrating to the world that Dundee and Scotland is a centre of excellence for the screen and gaming industries as we push into new markets and further strengthen the sector. I wish the team at Abertay University every success with the opening of the new facility.

    Stephen Coleman OBE, CEO & Co-Founder of CodeBase said:

    Supporting the CoSTAR Realtime Lab is another great opportunity for CodeBase to play our part as a Scottish ecosystem builder and a champion of tech-driven enterprise and entrepreneurship. We are always looking for new ways to collaborate with specialists in different technology domains and to leverage our delivery of Techscaler, Scotland’s national tech backbone for the benefit of the ecosystem as a whole, building on Scotland’s unique strengths in talent, research, and innovation.

    Howell Davies, Head of Strategic Funding and Programmes at Interface, said: 

    CoSTAR’s Realtime Lab is a game-changer for industry seeking to harness the power of real-time technologies. With access to cutting-edge tools, a deep and diverse pool of expertise and talent with a support system for organisations to empower them to innovate and create groundbreaking experiences, it will create significant impact and legacy for the UK’s creative industry and wider.

    Councillor Mark Flynn, Leader of Dundee City Council said:

    Dundee has a long history of being at the forefront of technology and innovation for the creative industries and it is wonderful to see the CoSTAR Realtime Lab and its virtual production studio being added to the city’s digital cluster. The video games, screen and performance industries already make a significant contribution to Dundee’s economic and cultural success and collaborative projects like this, supported by both academia and business, are important for the continued growth and future of the sector.

    Isabel Davis, Executive Director of Screen Scotland said: 

    An exemplar of academia collaborating directly with industry, Abertay’s role in CoStar and its leadership of the real-time lab continues Dundee’s illustrious history of creativity, design and invention.  The project will ensure that Scotland’s tech, digital and creative pioneers are embedded in the next wave of digital and creative transformation.

    For more information visit CoSTAR Network or follow @costarnetwork.

    Full information and funding calls can be found online: Access Programmes | CoSTAR

    MIL OSI United Kingdom

  • MIL-OSI: Bitget Wallet Integrates Aave to Expand Onchain Stablecoin Staking

    Source: GlobeNewswire (MIL-OSI)

    VICTORIA, Seychelles, Feb. 21, 2025 (GLOBE NEWSWIRE) — Bitget Wallet, a leading Web3 non-custodial wallet, has integrated with Aave, one of the largest decentralized lending protocols, to offer a secure onchain staking solution for USDT and USDC stablecoins with 5% APY. This integration lowers the entry barrier for users, allowing them to earn stable returns with minimal effort while maintaining full self-custody of their assets.

    Users can now stake USDT and USDC on Bitget Wallet across Ethereum, Base, Polygon, Arbitrum, and Optimism chains with an annual percentage yield (APY) of 5%. Bitget Wallet’s intuitive interface provides a real-time display of daily earnings, allowing users to flexibly manage their funds and withdraw assets at any time. To further incentivize participation, Bitget Wallet is launching a limited-time stablecoin staking event. From February 18 at 16:00 to March 4 at 16:00 (UTC+8), users who stake a minimum of $10 USDT or USDC via Bitget Wallet will have the opportunity to share a $7,000 worth of BGB reward.

    As more users seek decentralized alternatives to traditional finance, Bitget Wallet is reinforcing its role as the gateway to secure and transparent stablecoin yield generation. By leveraging Aave’s deep liquidity and efficient lending infrastructure, Bitget Wallet enables users to seamlessly stake stablecoins with optimized yields, eliminating the complexities often associated with decentralized finance. In addition to stablecoin staking, Bitget Wallet supports multi-chain staking of Ethereum, Solana, TON and more, providing diversified passive income opportunities.

    By enabling self-custodial staking across multiple networks, Bitget Wallet ensures greater security, accessibility, and financial independence for its users. “Our goal is to simplify on-chain earning opportunities while ensuring users maintain full control over their assets,” said Alvin Kan, COO of Bitget Wallet. “By supporting multi-chain staking, we are making decentralized finance more accessible, stable, and rewarding for users worldwide.”

    Learn more on the Bitget Wallet blog.

    About Bitget Wallet
    Bitget Wallet is the home of Web3, uniting endless possibilities in one non-custodial wallet. With over 60 million users, it offers comprehensive onchain services, including asset management, instant swaps, rewards, staking, trading tools, live market data, a DApp browser, an NFT marketplace and crypto payment. Supporting over 100 blockchains, 20,000+ DApps, and 500,000+ tokens, Bitget Wallet enables seamless multi-chain trading across hundreds of DEXs and cross-chain bridges, along with a $300+ million protection fund to ensure safety of users’ assets. Experience Bitget Wallet Lite to start a Web3 journey.

    For more information, visit: X | Telegram | Instagram | YouTube | LinkedIn | TikTok | Discord | Facebook

    For media inquiries, please contact media.web3@bitget.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7978bc97-af34-4747-aa96-9151862bf107

    The MIL Network

  • MIL-OSI Economics: Asian Development Blog: Unintended Consequences: Managing the Surprising Impacts of Conditional Cash Transfers

    Source: Asia Development Bank

    Conditional cash transfers provide immediate financial relief while fostering long-term investments in education and health, helping to break the cycle of poverty. Research reveals both intended and unintended effects that policymakers and project designers should consider.

    Conditional cash transfers are direct cash payments to people in need. They are designed to reduce poverty by providing cash transfers to households that fulfill specific conditions. These criteria often revolve around education, such as school attendance, or health, such as prenatal checkups. 

    By alleviating people’s short-term budget constraints while at the same time incentivizing long-term investments in human capital, these cash payments aim to break the cycle of poverty.

    The dual approach of immediate financial relief and long-term human capital investment has made conditional cash transfers widely popular. Early programs, starting in the late 1990s, were implemented in Latin America, with PROGRESA in Mexico and Bolsa Familia in Brazil being notable examples. 

    Since then, conditional cash transfers have seen widespread adoption globally, often as flagship anti-poverty programs supported by international development finance institutions. In Asia and the Pacific, Indonesia’s Program Keluarga Harapan (PKH) is a prominent example of a large-scale program.

    Conditional cash transfers are among the most closely studied anti-poverty programs due to their clear objectives, measurable goals, and widespread adoption. Large-scale programs are often informed by small-scale, rigorously measured pilots, which assess the impacts on recipients’ health and educational outcomes before being adopted at national scale. 

    Systematic reviews of existing studies generally find mixed to positive impacts on both short-term and long-term outcomes, further contributing to the popularity of conditional cash transfers.

    As new programs continue to be introduced and existing ones run for decades, the associated research grows. Beyond the intended impacts, new data sources and the realization that development policies can have multiple effects have led to a new strain of research. 

    Cash transfers, especially those with behavioral conditions, influence recipients’ actions in expected and unexpected ways, leading to both positive and negative outcomes. Research along these lines sheds light on their broader impact beyond the intended effects.

    Maximizing the benefits of conditional cash transfers requires understanding both their intended and unintended effects, ensuring that program design is evidence-based and adapted to local contexts.

    Given the expense of anti-poverty programs, findings on positive spillover effects can help to justify them, while negative impacts can inform necessary adjustments. 

    One prominent positive externality observed is the reduction in crime rates, especially in Latin America. As children are increasingly sent to school due to conditional cash transfer requirements, studies have found that gang violence decreases.

    These programs make skipping school to engage in violence more costly because recipient households risk losing their cash transfer payments if they don’t fulfill the program’s conditionalities.

    Similarly, the programs have been found to decrease child labor and reduce the prevalence of child marriages in rural areas. These are unintended effects, that is, impacts beyond the traditional theory of change of conditional cash transfer programs.

    These examples display how there are potential benefits beyond initial project design. 

    However, negative effects induced by conditional cash transfers have also been observed. One notable example is when parents pay more attention to the child that is targeted by the conditionality of the cash transfer program than their other children who are not targeted. 

    While school-aged children may feel pressured from increased attention and the need to perform well, older children can also suffer from parental neglect.  Another example is the mistargeting of conditional cash transfers, which can produce resentment and other problems in communities. 

    Although this issue is not specific to conditional cash transfers, the effect can be magnified because these are often flagship poverty programs.

    What can we make of these findings? It is crucial to acknowledge that these results can be highly context-specific. In some cases, side effects such as crime vary by region. 

    That said, awareness of potential externalities can help foster positive examples, while tweaking program design can contribute to mitigating negative ones.

    Given the importance of context-specificity, conditional cash transfer interventions should be carefully adapted to the local setting. This approach can help design interventions that avoid negative side effects and inform policy making at an earlier stage.

    Understanding a broader set of changes that a policy brings about can also inform cost-benefit analysis, helping to determine which intervention is best suited to achieve set objectives most efficiently in light of scarce resources. 

    A practical starting point is implementing pilot programs that test for both the intended and potential unintended effects of conditional cash transfers on a small scale. This ensures that scale-up decisions are evidence-based and consider outcomes beyond the primary objectives. 

    Maximizing the benefits of conditional cash transfers requires understanding both their intended and unintended effects. Evidence-based program design can enhance positive outcomes while minimizing risks, ensuring these interventions are both effective and equitable.

    MIL OSI Economics

  • MIL-OSI USA: Baldwin to Trump: Hold China Accountable for Decades of Cheating American Workers and Shipbuilders

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) led a group of her colleagues in calling on President Donald Trump to hold China accountable for cheating trade laws to gain an unfair advantage in the shipbuilding industry. In the final days of the Biden Administration, the U.S. Trade Representative (USTR) released a report Senator Baldwin pushed for that confirmed China has used unfair trade practices to undercut American shipbuilding. Now, Senator Baldwin is pushing the Trump Administration to take immediate action to level the playing field for American workers, businesses, and national security.

    “To stand up for the hardworking Americans employed in the shipbuilding industry, those who serve in the military branches that need these vessels, and those who live in communities supported by these jobs, we must act quickly to hold China accountable and reverse the decimation of our maritime strength and capacity inflicted over the last two decades,” wrote Senator Baldwin and the lawmakers in a letter to President Trump. “As we strive to grow the American economy, compete with the PRC, strengthen our ability to engage in international commerce and ensure the American military has the resources necessary to succeed, we urge your Administration to take action regarding the PRC’s actions in the maritime, logistics, and shipbuilding sectors.”

    In March of 2024, Senator Baldwin called on the Biden Administration to fight China’s unfair trade practices, leading her colleagues in support of the United Steelworkers’ (USW) effort to have then-USTR Katherine Tai initiate a full investigation into China’s maritime, logistics, and shipbuilding sectors. The USTR launched an investigation last year, and the report released last month found that China targeted the maritime, logistics, and shipbuilding sectors for dominance, concluding that the PRC’s targeted dominance in these sectors is unreasonable and burdens or restricts U.S. commerce, and is therefore “actionable” under Section 301. 

    The report lays out China’s efforts to target the shipbuilding and maritime industry for dominance – using state-sponsored financial support to elevate their own industry, imposing barriers for foreign firms, and stealing intellectual property to give China’s shipbuilding and maritime industry an advantage. According to the report, China also severely and artificially suppressed labor costs in the maritime, shipbuilding, and logistics sectors, undercutting American workers.

    In her letter to President Trump today, Senator Baldwin called on this administration to act on the results of the investigation that has confirmed China’s unfair trading practices are undercutting American shipbuilding and workers and undermining our economic and national security. Over the last 20 years, the United States has lost industrial shipbuilding capacity while China’s subsidized shipbuilding has only grown. State-owned enterprises and other facilities in China are now capable of producing over 1,000 ocean-going vessels a year, while the United States currently produces fewer than ten. While shipbuilding capacity, suppliers, and shipyards remain vital to the U.S. economy and national security, China’s uncompetitive trade practices have led to 25,000 domestic shipbuilding suppliers leaving the U.S. market over the past 20 years.

    Senators Elizabeth Warren (D-MA), John Fetterman (D-PA), Elissa Slotkin (D-MI), and Amy Klobuchar (D-MN) also signed the letter.

    A full version of this letter is available here and below.

    Dear Mr. Trump:

    We write to you about the People’s Republic of China’s (PRC)’s actions in the maritime, logistics, and shipbuilding sector and urge you to act on the results of the investigation that has confirmed China’s unfair trading practices are undercutting American shipbuilding and workers and undermining our economic and national security.

    Last year, the United Steelworkers (USW) and other unions filed a petition under Section 301 of the Trade Act of 1974. The United States Trade Representative’s (USTR) responded by initiating an investigation and determined “China has largely achieved its dominance goals, severely disadvantaging U.S. companies, workers, and the U.S. economy generally through lessened competition and commercial opportunities and through the creation of economic security risks from dependencies and vulnerabilities.” USTR found that China’s unfair trade practices in maritime, logistics, and shipbuilding are “actionable,” and we therefore urge your Administration to identify and implement appropriate relief measures and partner with Congress as needed. Enacting strong measures to address the PRC’s actions will be a critical step towards promoting our domestic industrial base, growing America’s economy, creating good-paying jobs in these important sectors, and protecting our national security.

    After World War II, the United States led the world in commercial shipbuilding. Over the last twenty years, the PRC has executed a comprehensive strategy to significantly diminish the shipbuilding industry in the United States and to become the dominant shipbuilding force globally. The PRC can now produce over 1,000 ships per year, while the United States only has the capacity to produce fewer than ten ocean-going vessels per year. America has lost 25,000 domestic shipbuilding suppliers over the last two decades. This drastic difference in capacity is a result of the PRC’s anti-competitive practices to gain an advantage in shipbuilding through unfair and discriminatory tactics, such as government subsidies and favorable loans from PRC-operated banks. According to USTR’s report, the non-market excess capacity in China’s steel sector significantly contributes to the price competitiveness of PRC-made vessels, and there are instances where Chinese steel intended for vessels in Chinese shipyards has been sold at a lower rate than Chinese steel intended for market economies. To give the American shipbuilding industry a more level playing field and the opportunity to grow, China’s harmful, market-distorting practices should be addressed immediately by this Administration.

    The PRC’s dominance in the shipbuilding industry has dire consequences for America’s economic security and national security. It is essential that the United States prioritizes scaling up our shipbuilding capacity, to both guard against the economic harms felt by loss of jobs at shipyards and suppliers, and because privately-owned shipyards provide essential help to build and maintain the Navy’s fleet. To allow the PRC to control the global transportation supply chain is to open the United States and our allies to immeasurable risks, from supply chain shortages to severe national security concerns. USTR’s report describes the dangers of the PRC’s Maritime Silk Road initiative, including a Chinese government-sponsored logistics platform, LOGINK. LOGINK is used in ports around the world and collects information that could easily be manipulated to disrupt supply chains, allow Chinese companies to reduce prices and undermine competitors, and provide details about the movement of sensitive equipment through commercial ports. The PRC cannot be allowed to continue to expand this intelligence network unchecked, or the United States will experience additional economic harm and threaten our  national security.

    Our states are home to companies that specialize in shipbuilding and repair for both the Navy and commercial vessels, as well as suppliers of necessary inputs to build ships. These businesses are significant employers in communities around the country and provide a pathway to the middle class. Retaining these companies and their workforce ensures the knowledge and ability to build vessels, both for military purposes and to transport goods across the world, remains made in America. A shipyard closing or reducing their number of employees, or a supplier shifting their operations overseas, means local economies lose good-paying, often union, jobs, and America takes another step back in the competition with the PRC. To stand up for the hardworking Americans employed in the shipbuilding industry, those who serve in the military branches that need these vessels, and those who live in communities supported by these jobs, we must act quickly to hold China accountable and reverse the decimation of our maritime strength and capacity inflicted over the last two decades.

    As we strive to grow the American economy, compete with the PRC, strengthen our ability to engage in international commerce and ensure the American military has the resources necessary to succeed, we urge your Administration to take action regarding the PRC’s actions in the maritime, logistics, and shipbuilding sectors. USTR’s determination concludes the PRC’s targeting is unreasonable, burdens or restricts U.S. commerce, and that “responsive action is appropriate to obtain the elimination of the acts, policies, or practices covered in the investigation.” The United States must take action expeditiously to address the PRC’s unfair, harmful, and discriminatory practices. Thank you for your attention to this most important matter.

     Sincerely,

    MIL OSI USA News

  • MIL-OSI Australia: Australian Education Union annual conference

    Source: Australian Ministers for Education

    Let me begin by acknowledging the Traditional Owners of the land on which we are meeting and pay my respects to elders past, present and emerging.

    There is really only one job in politics I have ever wanted. And this is it. 

    There is one reason more than anything else I wanted to do it. 

    To do what we are doing right now.

    Fixing the funding of our public schools and what it will do.

    I don’t think there’s anything more important than what we do in education. 

    It doesn’t just change lives. 

    Its impact ricochets through generations. If you finish school, your kids are more likely to finish school.

    It changes communities too and it changes countries. It’s changed ours. 

    And public education does most of that heavy lifting. 

    It’s where you’ll find the most disadvantaged children in this country. The children who need our help the most. 

    And these are the schools that are most underfunded. 

    Where the challenges are the greatest. Where the need is the greatest. 

    This is what we’ve got to fix. We have got a long way to go, but a lot has happened in the last 12 months.  

    This time last year I talked about the agreement I had just signed with Western Australia. 

    That extra funding is now in WA schools. 

    Last year I also reached agreements Tasmania, the ACT and the Northern Territory. 

    And that funding is also now rolling out. 

    There’s no public school in the country, apart from the ACT, where funding is at the Gonski level yet.

    And there’s no public school in the country where the disadvantage is as bad or the funding is as low as the Northern Territory. 

    Until this agreement. 

    It was sitting at less than 80 per cent of the SRS. 

    In other words, one in five children in the Northern Territory were effectively not being funded at all. 

    This agreement fixes that. 

    It doubles the amount of money that the Australian Government puts into public schools in the Northern Territory.

    It means instead of reaching full funding in the second half of this century. 

    They will reach it in the next few years.   

    It means that some of the most disadvantaged public schools in this country will now be some of the best funded.

    That’s the sort of thing that will change lives. 

    It is the sort of thing that only Labor Governments do.

    And since I last spoke at this conference, something else just as important has happened. 

    We’ve doubled what we’re offering the states. 

    We will fund the full 5 per cent. What you’ve always asked for. 

    In return, we want the states to get rid of the 4 per cent that is spent on things like capital depreciation – what you have also been calling for. 

    That’s a big shift. 

    And South Australia has signed up to that, Victoria has signed up to that too and so has Western Australia. 

    And I want to do the same across the country. 

    This is a big change, that you have made happen. 

    It still involves the Australian Government and state governments both chipping in. 

    And it still means tying that funding to the sort of things that we know will help children who need extra help and support.

    The sort of things that you’ve been calling for and asking for. 

    Things like extra funding for catch-up tutoring and mental health support.

    And it means being able to see where that money is going. Making sure it goes where it’s needed. The sort of transparency that you’ve been asking for. 

    That’s where we stand today. 

    I can promise you as long as I am in this job, I will not stop fighting for this.

    What I can’t promise you is that this will survive if Peter Dutton becomes Prime Minister. 

    That’s not a threat, it’s just the truth. 

    You just have to look at what they did last time.

    They ripped the guts out of funding for public schools.

    The legislation we have put in place last year will make it hard for him, but not impossible.

    The fact is if he wins he could still reverse that and rip this funding out.

    That’s the truth. 

    There is a lot more to do, I know that, but there is also a lot to fight to keep. 

    I don’t think it is over the top to say that the future of public education is at stake. 

    If this funding gets ripped out again, inevitably it means more kids will leave the public education system. More teachers will leave too, and more kids won’t finish high school. 

    Our schools will become even more segregated than they are today. 

    I know you know this, that’s why you’ve been fighting for this when others haven’t. 

    Fighting for this for more than a decade. Keeping the cause alive. 

    This wouldn’t be happening without you, that’s the truth. But the fight isn’t over yet. 

    Something else I want to talk about today. Something worth celebrating. 

    That’s the pay rises in the last 12 months in NSW, South Australia, Western Australia and the NT and the impact they are having. 

    And the agreements you’ve struck that make a dent in things like workload. Things like more school development days, extra admin support and things like the right to disconnect.

    I remember a primary school teacher telling me once that he carried 30 parents around in his pocket.  

    And that high school teachers carry more than 100. 

    They send him messages often late at night. Not thinking they are bothering him, but that’s just when they’ve got a spare minute when the kids are asleep, but still his phone would ping. 

    That’s what the right to disconnect is all about. That’s why the agreements like the one struck in NSW are so important. 

    There was some good news on Monday that shows the number of teachers last year jumped by about 8,000. That’s good. 

    It doesn’t mean we don’t still have serious teacher shortages, of course we do, but what it shows, I think, is if you pay people more and respect the work they do, more people want to do the job and more people are likely to stay. 

    You can also see the signs of this in the number of people enrolling in teaching courses this year – up 14 per cent. 

    I’ve got to think that’s helped by pay increases, the agreements, but also things like the new Commonwealth Teaching Scholarships – worth about 40 grand or twice the cost of a teaching degree.

    It’s an old school idea that we’ve brought back – we help you cut the costs while you are at uni and you pay it back by working in the public school system when you graduate. 

    And from 1 July this year, for the first time ever, we’ll start providing financial support for teaching students while they do their prac.

    It all helps. It’s all important. 

    I’m not saying all the problems, all the challenges, all the shortages are fixed – they’re not, of course they’re not, but finally, for the first time in a long time things are starting to head in the right direction. 

    Something else I want to mention today and that’s what we are doing before kids ever start kindy or prep, before they step into your classrooms. 

    I think you know what I am about to say, education doesn’t start at 5 and what we do here, in those first five years, has a big impact on the sort of challenges school teachers face. 

    And just like there’s a shortage of teachers in our schools, there’s a real shortage of early educators. 

    A big part of that is just people leaving. 

    When we won the election two and half years ago, they were leaving in droves.

    Many just because they couldn’t afford to keep doing it. They could earn more at Coles or Woolies or Bunnings. 

    That’s now changing. 

    And that’s because of the 15 per cent pay rise that we’re now rolling out. 

    The best example of that is what’s happening at Goodstart, the biggest childcare operator in the country.

    At their centres job applications have now jumped by 35 per cent in the last few months. 

    Expressions of interest have jumped by 50 per cent, and vacancy rates are down by a massive 28 per cent. 

    We’re seeing that sort of thing right across the country.

    Again, it turns out that, if you pay people more, more want to do the job.

    And last week we did something else. We passed laws that will change the lives of some of the most disadvantaged children in Australia. 

    You know these kids. The first time they step into a classroom environment is when they get to school. 

    They never experience early education or don’t get enough of it. 

    One of the reasons for that is a thing called the Activity Test. Something put in place by the Liberal Party that meant parents couldn’t get the Child Care Subsidy. 

    And it meant that their kids start school behind. 

    The legislation we passed through Parliament last week gets rid of that test and replaces it with a three day guarantee. 

    A guarantee of three days a week of government supported early education and care for every child who needs it. 

    No one blinks when you say every child has a right to go to school and government has a responsibility to help fund it. 

    The same has got to be true for early education. That doesn’t mean it should be compulsory. But it should be there for every parent who wants it and every child who needs it. 

    To help make sure they start school ready to go. 

    And that’s what happened last week.

    Again, that’s the sort of reform that only Labor Governments do. And that our country needs. 

    I know there is more to do. 

    I don’t have to convince you of that. 

    And I don’t expect you to stop fighting for it. 

    I hope you don’t.  I know you won’t. 

    So let me end by just saying thank you. 

    Thank you for everything you do. 

    Thank you for working with me over the last two and half years. 

    And thank you for what you are about to do. 

    To help make sure that Peter Dutton doesn’t get the chance to do a Tony Abbott 2.0 and rip everything we have done away.

    MIL OSI News

  • MIL-Evening Report: The promise of green iron, steel and ammonia is keeping the green hydrogen dream alive

    Source: The Conversation (Au and NZ) – By Changlong Wang, Research fellow in Civil and Environmental Engineering, Monash University

    D.Alimkin, Shutterstock

    Hydrogen was once sold as a universal climate fix — a clean, green wonder fuel for cars, homes, power grids and even global export. But reality has cooled that buzz.

    This week, the South Australian government shelved plans for a A$593 million hydrogen power plant, in favour of injecting that money into the $2.4 billion Whyalla steelworks rescue package. Premier Peter Malinauskas said there was “no point in producing hydrogen” without a customer: the steelworks.

    It’s the latest in a series of setbacks for hydrogen. Last year, Australian mining and energy giant Fortescue pared back its green hydrogen projects as a result of increasing costs and changing financial circumstances in the United States.

    Then, gas and oil heavyweight Woodside withdrew plans for two large-scale green hydrogen projects and Origin Energy dropped out of the Hunter Valley Hydrogen Hub.

    Meanwhile, the Hydrogen Energy Supply Chain project in Victoria, meant to ship hydrogen to Japan, has met with delays and overruns. Earlier this month, the new Queensland government chose to halt further investment in the Central Queensland Hydrogen Project, putting plans to export hydrogen in doubt.

    These setbacks show hydrogen isn’t the ultimate solution to all our energy needs, especially if we want to export it. But they don’t spell doom. Instead, they nudge us toward where hydrogen really shines: in heavy industry, right where it’s made.

    Heavy industry: where hydrogen makes sense

    Heavy industries such as steel manufacturing and ammonia production are where hydrogen proves its worth. These sectors are significant contributors to climate change — steel accounts for about 8% of global greenhouse gas emissions, ammonia a further 2%.

    Most emissions from steelmaking come from burning coal in blast furnaces to convert ore into iron and carbon dioxide.

    In a cleaner alternative, hydrogen (when produced using renewable energy) can be used to strip oxygen from the ore and make iron, with water as a byproduct. The result is green iron, ready to be turned into steel in an electric arc furnace – with a fraction of the emissions.

    Ammonia is used to make fertiliser and industrial chemicals, and hydrogen is one of the main ingredients in its production. Hydrogen bonds with nitrogen from the air to form ammonia. No hydrogen, no ammonia — it’s that simple. Conventional ammonia plants get hydrogen from methane, producing CO₂ in the process. Green ammonia uses renewable energy to produce hydrogen by splitting water via electrolysis.

    Our recent research crunched the numbers on producing these new green commodities. We found making green iron in Australia with hydrogen and shipping it to Europe for steel production could be 21% cheaper than exporting raw iron ore and hydrogen separately. Plus, it could cut emissions by up to 95% compared to traditional methods.

    There are huge economic opportunities for Australia too. Instead of shipping low-value raw materials, Australia could export ready-to-use green iron or green steel, reshaping global supply chains while cutting costs and carbon. That’s the kind of rethink hydrogen enables.

    Industry hubs: a practical fix

    Transporting hydrogen long distances is costly and inefficient. The fix? Industry hubs that produce hydrogen right where it’s needed — next to steel mills, ammonia plants, desalination plants, water treatment plants or even aluminium smelters. Putting producers and consumers together slashes transport costs and unlocks efficiencies.

    We’ve built tools to pinpoint places with the greatest potential to produce these new green commodities.

    The Hydrogen Economic Fairways Tool maps where renewable energy, infrastructure and industrial sites align for cost-effective hydrogen production.

    The Green Steel Economic Fairways Mapper zooms in on prime locations for green steel, spotlighting places such as Eyre Peninsula in SA and the Pilbara in Western Australia, among others (see below). These locations have abundant wind and solar resources alongside an existing industrial base.

    The Green Steel Economic Fairways Mapper compares the levelised cost of steel, including production and transport to the port. a) Regional changes across Australia b) Example of how to optimise the system to minimise the levelised cost of producing 1 million tonnes per annum c) Breakdown of costs d) Hourly system performance, in terms of energy flows.
    Green Steel Economic Fairways Mapper, Geoscience Australia

    Challenges remain

    Green hydrogen promises to revolutionise heavy industries, but significant hurdles stand in the way of widespread domestic adoption. The biggest challenge comes from the unpredictable nature of renewable energy, which makes it hard to maintain the steady hydrogen supply industries need.

    The costs remain steep, too. Splitting water into hydrogen using renewable electricity isn’t cheap, particularly when you need backup storage systems to keep production going during cloudy or windless periods.

    Getting hydrogen where it needs to go poses another major challenge. As hydrogen is both bulky to transport and highly flammable, it requires special handling and infrastructure, driving up costs, especially for facilities far from production sites.

    Many companies also hesitate to invest in hydrogen-compatible equipment, as retrofitting existing plants or building new ones requires substantial upfront costs without guaranteed returns.

    The $2.4 billion rescue package for the Whyalla Steelworks (ABC News)

    Government backing: a push in the right direction

    Thursday’s announcement of A$2.4 billion investment in the Whyalla steelworks along with plans for a $1 billion green iron investment fund are a bold bet on green steel. Furthermore, the landmark Future Made in Australia legislation introduces a $6.7 billion Hydrogen Production Tax Incentive, offering $2 per kilogram of renewable hydrogen produced between 2027–28 and 2039–40, alongside a 10% tax credit for critical minerals processing.

    Meanwhile tax credits for green aluminium and alumina should help another heavy industry to navigate the energy transition using clean hydrogen.

    These measures aim to unlock tens of billions in private investment, boost regional economies, and position Australia as a leader in clean energy manufacturing. This isn’t just about one-off projects. It’s laying the groundwork for hubs that link renewable energy and hydrogen production to industrial demand.

    There’s more in the pipeline. The Hydrogen Headstart program pumps funds into hydrogen innovation, and the Future Made in Australia initiative backs clean industry with billions more. Add in policies like carbon pricing or low-interest loans, and the economics tilt even further toward green steel and ammonia. Government buying power — in the form of procurement targets for low-carbon materials — could seal the deal by guaranteeing demand.

    These policies aren’t just wishful thinking — they’re practical steps that are already working elsewhere. Sweden’s HYBRIT project, which paired green steel with government-backed demand, has already led to construction starting on new industrial-scale green steel facilities. At the same time, the European Union’s hydrogen strategy leans on carbon pricing and subsidies to guide industries and suppliers through the energy transition, while Japan offers incentives for the use of green steel in their automotive industry.

    Australia has the renewable energy and the industrial base to take advantage of these opportunities. With the right leadership, we can turn hydrogen’s stumbles into a global triumph for heavy industry.

    Changlong receives funding from the South Australian Department for Energy and Mining to conduct the SA Green Iron Study, and from Geoscience Australia under the Exploring for the Future program to develop the Hydrogen and Green Steel Economic Fairways tool. Changlong is affiliated with Melbourne Climate Futures, University of Melbourne, and is a visiting fellow at Engineering Science, Oxford University, UK.

    Stuart Walsh receives funding from Geoscience Australia supporting the development of the Bluecap software suite, which highlights opportunities for new renewable energy and critical mineral projects in Australia. Stuart received funding from the South Australian Department for Energy and Mining to conduct the SA Green Iron Study and from Geoscience Australia under the Exploring for the Future program to develop the Hydrogen and Green Steel Economic Fairways tool.

    ref. The promise of green iron, steel and ammonia is keeping the green hydrogen dream alive – https://theconversation.com/the-promise-of-green-iron-steel-and-ammonia-is-keeping-the-green-hydrogen-dream-alive-250410

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: As Republicans Propose Budget, Warren Fights Back With 10 Amendments to Block Cost Hikes for Families, Stop Billionaire Tax Cuts, and Hold Elon Musk, DOGE Accountable

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren

    February 20, 2025

    Washington, D.C. – During the Senate’s consideration of the Republican budget resolution, U.S. Senator Elizabeth Warren (D-Mass.) fought back against Republicans’ proposed budget with amendments to block cost increases for families, prevent tax cuts for the rich, and hold Elon Musk and the Department of Government Efficiency (DOGE) accountable for reckless cuts to government agencies. 

    “While Republicans charge ahead with a budget that will increase costs on families, I have plans to fight back,” said Senator Warren. “Every Republican Senator will have to answer for votes putting billionaires over families.”  

    Senator Warren led the following amendments: 

    Stopping Cost Hikes for Families 

    • Amendment that opposes any final budget legislation that increases grocery costs for American families, including through proposals to cut food assistance programs; 
    • Amendment that opposes any final budget legislation that increases health insurance premiums or out-of-pocket costs through proposals to cut Medicaid and the Affordable Care Act; 
    • Amendment that opposes final budget legislation raising costs for middle-class families while an unelected billionaire illegally directs cuts to key programs like air travel safety, services for veterans, and the integrity of Social Security, Medicare, and Medicaid payments;
    • Amendment against final budget legislation while Americans’ Social Security, Medicare, and Medicaid benefits are threatened by DOGE infiltrating the Social Security Agency and the Center for Medicare and Medicaid Services; 
    • An amendment opposing final budget legislation until funding for the National Institutes of Health for research and clinical trials on rare diseases, pediatric diseases, cancer, or other serious diseases or conditions is restored. 
    • Amendment supporting investments in child care for military families, calling out that Republican plans to increase Pentagon funding are not focused on helping military families. 

    No Tax Cuts for the Rich

    • An amendment opposing tax cuts for the rich, specifically no tax cuts for people making over $10 million annually. 

    DOGE Accountability 

    • Amendment on public financial disclosures for Special Government Employees, pushing to hold Elon Musk accountable while he pursues policies that will benefit himself but hurt hardworking Americans; 
    • Amendment on investigation or criminal prosecution of unlawful misuse of private personal and tax information by DOGE; and 
    • Amendment requiring the Congressional Budget Office to produce a cost estimate for replacing probationary national security employees, fired as a result of Elon Musk and DOGE, with contractors – calling out how Republican plans to remove skilled civil servants will be a big payday to boost defense contractor profits. 

    MIL OSI USA News

  • MIL-OSI USA: Cotton, Rosen Introduce Bill to Protect Outdoor Sporting Events from Unauthorized Drones

    US Senate News:

    Source: United States Senator for Arkansas Tom Cotton
     
    FOR IMMEDIATE RELEASEContact: Caroline Tabler or Patrick McCann (202) 224-2353February 20, 2025
    Cotton, Rosen Introduce Bill to Protect Outdoor Sporting Events from Unauthorized Drones
    Washington, D.C. — Senator Tom Cotton (R-Arkansas) and Senator Jacky Rosen (D- Nevada) today introduced the Disabling Enemy Flight Entry and Neutralizing Suspect Equipment (DEFENSE) Act, legislation that will enhance security at major outdoor gatherings and sporting events by ensuring that state and local law enforcement have the authority and tools necessary to protect these events from aerial threats in real-time, rather than waiting for federal intervention. 
    This bill is endorsed by the NFL, MLB, NASCAR, the NCAA, and the SEC.
    “Stadiums and spectators at large events are vulnerable to unauthorized drone activity, which puts both public safety and national security at risk. Our bill empowers local authorities to safeguard large public gatherings from aerial threats,” said Senator Cotton.
    “Major events — including sports and live entertainment — play a significant role in supporting our economy in Las Vegas and across the country, and we need to ensure they are safe,” said Senator Rosen. “Our bipartisan bill would enable state and local law enforcement to better mitigate threats posed by drones to the security of these high attendance events.”
    “The NFL thanks Senators Cotton and Rosen for introducing the DEFENSE Act.  As the threat of illicit drone use continues to rise, it is critical that our partners in local law enforcement have the tools and resources they need to keep fans safe.  The league strongly supports this legislation, which will help keep fans safe at major sporting events across the country,” said Cathy Lanier, Chief Security Officer, NFL.
    “Major League Baseball applauds Senators Tom Cotton and Jacky Rosen for introducing the Disabling Enemy Flight Entry and Neutralizing Suspect Equipment (DEFENSE) Act”, said David Thomas, Major League Baseball Senior Vice President of Security and Ballpark Operations. “ For several years, MLB has urged Congress to address the growing and unmitigated threat which unauthorized unmanned aircraft systems (UAS or drones) pose to major sporting venues. The Cotton-Rosen legislation would enable the employment of counter-drone technology by well-trained state and local law enforcement to protect our stadiums and sporting venues nationwide. If enacted, this legislation would dramatically increase the security of our stadiums and the safety of the 70,000,000 fans who attend our games annually. We look forward to working with Senator Cotton, Senator Rosen and other members of Congress to advance this critical piece of legislation for the benefit of our fans, players, and employees.”
    “In introducing the DEFENSE Act, NASCAR recognizes Senator Cotton and Senator Rosen for addressing a crucial issue related to event security,” said Allen Taylor, Managing Director, Security, NASCAR. “Giving qualified law enforcement partners at the state and local level the resources necessary to mitigate drone related threats is essential to helping keep events and communities across the country safe.”
    “The NCAA supports this legislation and thanks Senator Cotton and Senator Rosen for their leadership on this issue.  For several years, the NCAA has expressed concern for the threat that unauthorized drones pose at NCAA championships and college sporting events. The safety of the competitors, fans, and staff that work at NCAA events is our top priority,” said Tim Buckley, Senior Vice President of External Affairs, NCAA.
    “The safety of our teams and fans is a key priority at athletics events.   The SEC commends the bipartisan leadership of Senator Tom Cotton and Senator Jackie Rosen for introducing this important legislation that is intended to provide public safety officials on campuses and in the communities they serve with enhanced measures to address unauthorized drone usage,” said SEC Commissioner Greg Sankey.
    Text of the legislation may be found here.
    Background:
    The bill would give state and local law enforcement the authority to mitigate threats posed by drones and unmanned aircraft systems in places where a temporary flight restriction is in place. This includes large outdoor and sporting events. 
    It would also require DOJ, FAA, FCC, and NTIA to create a list of approved technology that local and state law enforcement officers can use to address these threats.

    MIL OSI USA News

  • MIL-OSI Economics: Money Market Operations as on February 20, 2025

    Source: Reserve Bank of India


    (Amount in ₹ crore, Rate in Per cent)

      Volume
    (One Leg)
    Weighted
    Average Rate
    Range
    A. Overnight Segment (I+II+III+IV) 5,73,540.52 6.23 3.00-6.65
         I. Call Money 16,460.79 6.35 5.15-6.45
         II. Triparty Repo 3,88,782.20 6.20 5.75-6.61
         III. Market Repo 1,66,214.48 6.27 3.00-6.65
         IV. Repo in Corporate Bond 2,083.05 6.51 6.50-6.60
    B. Term Segment      
         I. Notice Money** 305.30 6.24 5.75-6.45
         II. Term Money@@ 631.00 6.50-6.65
         III. Triparty Repo 1,385.95 6.21 6.00-6.45
         IV. Market Repo 324.50 6.58 6.45-6.60
         V. Repo in Corporate Bond 0.00
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo Thu, 20/02/2025 1 Fri, 21/02/2025 1,00,022.00 6.27
      Thu, 20/02/2025 1 Fri, 21/02/2025 32,916.00 6.26
         (b) Reverse Repo          
      (III) Long Term Operations^          
         (a) Repo          
         (b) Reverse Repo          
    3. MSF# Thu, 20/02/2025 1 Fri, 21/02/2025 760.00 6.50
    4. SDFΔ# Thu, 20/02/2025 1 Fri, 21/02/2025 1,37,648.00 6.00
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -3,950.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo Mon, 17/02/2025 4 Fri, 21/02/2025 57,413.00 6.26
         (b) Reverse Repo          
      (III) Long Term Operations^          
         (a) Repo Fri, 14/02/2025 49 Fri, 04/04/2025 75,003.00 6.28
      Fri, 07/02/2025 56 Fri, 04/04/2025 50,010.00 6.31
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    D. Standing Liquidity Facility (SLF) Availed from RBI$       9,095.71  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     1,91,521.71  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     1,87,571.71  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on February 20, 2025 8,87,764.02  
         (ii) Average daily cash reserve requirement for the fortnight ending February 21, 2025 9,12,240.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ February 20, 2025 1,32,938.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on January 24, 2025 -34,103.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    ^ As per the Press Release No. 2024-2025/2138 dated February 12, 2025 and Press Release No. 2024-2025/2013 dated January 27, 2025.
    Ajit Prasad          
    Deputy General Manager
    (Communications)    
    Press Release: 2024-2025/2210

    MIL OSI Economics

  • MIL-OSI USA: Cortez Masto, Rosen Demand Department of Veterans Affairs Provides Answers Regarding Mass Employee Terminations

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto
    Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Jacky Rosen (D-Nev.) sent a letter to U.S. Department of Veterans Affairs (VA) Secretary Doug Collins demanding he provide answers on the mass terminations of personnel across the VA, specifically those in Nevada. The Senators expressed concern that these staff reductions would have detrimental impacts for veterans in Nevada and across the United States.
    “We are writing to express our concerns with recent terminations of employment at Nevada’s Department of Veterans Affairs (VA) facilities, including all affected employees and the proportion of those employees who are veterans,” wrote the Senators. “The VA plays a critical role in ensuring that our nation’s veterans receive the care, benefits, and support they have earned through sacrifice. A significant reduction in staff could have serious consequences for both VA operations and our veterans in Nevada.”
    Nevada is home to nearly 220,000 veterans who depend on VA facilities in Las Vegas, Reno, and rural communities. The terminations at the VA could lead to increased wait times for medical care, delays in processing disability claims, and disruptions in the delivery of essential support services our veterans need.
    “The VA has long served as an important source of employment for those who have sacrificed for this country, offering them a structured and mission-driven career path,” the Senators continue. “Many of these employees have service-connected disabilities or other conditions that make VA employment particularly vital to their financial and personal stability. Any significant reduction in the number of veterans employed by the VA risks worsening unemployment rates among former service members and may contribute to broader issues such as homelessness and economic instability within the veteran community.”
    Specifically, the Senators requested the following information about the terminated employees:
    The total number of Veterans Affairs employees, located in Nevada, who have been terminated.
    The number of these employees who were veterans.
    The number of these employees who are veterans with service-connected disabilities.
    The number of employees who were terminated as probationary employees, but who had many years at VA in a different position.
    A description of the position and responsibilities of each terminated employee.
    A detailed explanation of the rationale behind these terminations, including any financial, policy, or strategic considerations.
    Any assessments or analyses conducted to evaluate the potential impact of these terminations on VA services.
    Any measures being taken to mitigate the consequences of these terminations, particularly concerning veteran employees and the delivery of essential services.
    The full text of the letter can be found here.
    Senators Cortez Masto and Rosen are champions for our service members and their families, as well as America’s veterans. In a previous letter to VA Secretary Collins, they demanded the Secretary take immediate action to secure veterans’ personal information provided by VA or other agencies to Elon Musk and the Department of Government Efficiency (DOGE). Last year, the Senators passed legislation to officially authorize construction of a new VA hospital in Reno.

    MIL OSI USA News

  • MIL-OSI Global: Trump is ruling like a ‘king’, following the Putin model. How can he be stopped?

    Source: The Conversation – Global Perspectives – By William Partlett, Associate Professor of Public Law, The University of Melbourne

    A month in, and it is clear even to conservatives that US President Donald Trump is attempting to fundamentally reshape the role of the American president.

    Trump and his supporters sees the natural authority of the American president in broad terms, similar to those of the Russian president, or a king. Trump, in fact, has already likened himself to a king.

    This desire to “Russify” the presidency is not an accident: Trump and many of his supporters admire the king-like power that Vladimir Putin exercises as Russian president.

    Understanding how Trump is attempting to transform presidential power is key to mobilising in the most effective way to stop it.

    Decrees by a ‘king’

    Russia’s system of government is what I call a “crown-presidential” system, which makes the president a kind of elected king.

    Two powers are central to this role.

    First, like a king, the Russian “crown-president” does not rely on an elected legislature to make policy. Instead, Putin exercises policy-making authority unilaterally via decree.

    Putin has used decrees to wage wars, privatise the economy and even to amend the constitution to lay claim to the parts of Ukraine occupied by Russia since 2014.

    He has also used these decrees in a performative way, for example, by declaring pay raises for all Russian state employees without any ability to enforce it.

    Over the last month, Trump has made similar use of decrees (what the White House now terms “presidential actions”).

    He has issued scores of presidential decrees to unilaterally reshape vast swathes of American policy – far more than past presidents. Trump sees these orders as a way of both exercising and demonstrating his vast presidential power.

    Control over the bureaucracy

    Second, like a king, Putin does not allow the Russian legislature to use the law to organise the executive branch and create agencies independent of presidential control. Instead, he has unquestioned dominance over both the organisation and staffing of the executive branch. This has given him vast power to dominate politics by controlling information gathering and legal prosecutions.

    A similar push is underway in the United States. Trump has appointed key loyalists to head the Department of Justice and Federal Bureau of Investigation.

    Moreover, he is seeking to restructure the executive branch by abolishing some agencies altogether and vastly reducing the size of the workforce in others.

    Can the courts stop Trump?

    Trump’s attempt to Russify the American presidency undermines the American constitutional order.

    Courts are the natural “first responders” in this kind of crisis. And many courts have blocked some of Trump’s early decrees.

    This legal response is important. But it is not enough on it own.

    First, the US Supreme Court might be more willing to accept this expansion of presidential power than lower courts. In a ruling last year, for example, the court granted the president immunity from criminal prosecution, showing itself to be sympathetic to broad understandings of executive power.

    Second, presidential decrees can be easily withdrawn and modified. This can allow Trump and his legal team to recalibrate as his decrees are challenged and find the best test cases to take to the Supreme Court.

    Third, parts of the conservative right have long argued for a far more powerful president. For instance, the idea of a “unitary executive” has been discussed in conservative circles for years. This essentially claims that the president should be able to direct and control the entire executive branch, from the bureaucracy to prosecutors to the FBI.

    These arguments are already being made to justify Trump’s actions. As Elon Musk has said, “you could not ask for a stronger mandate from the public” to reform the executive branch. These arguments will be made to courts to justify Trump’s expansion of power.

    Fourth, even if the Supreme Court does block some decrees, it is possible the White House will simply ignore these actions. We had an early glimpse of this when Trump posted that “He who saves his Country does not violate any Law”.

    Vice President JD Vance has also said judges “aren’t allowed” to block the president’s “legitimate power”.

    The importance of political mobilisation and messaging

    Trump’s aggressive use of presidential power is not just a constitutional crisis, it is a political one. For those seeking to resist, this is too important to just be left to the courts; it must also involve America’s key political institutions.

    The most obvious place to start is in Congress. Lawmakers must act decisively to assert the legal power granted to them in the constitution to check the power of the presidency. This would include active Congressional use of its budgeting power, as well as its oversight powers on the presidency.

    This could happen now if a few Republicans were to take a principled position on important constitutional issues, though nearly all have so far preferred to fall in line. Democrats could retake both branches of Congress in the midterm elections in 2026, though, and assert this power.

    The states can and should also act to resist this expansion of presidential power. This action could take many forms, including refusing to deploy their traditional police powers to enforce decrees they view to be unconstitutional or unlawful.

    In mobilising to defend the constitution, these institutions could appeal to the American people with more than the narrow legal argument that Trump’s acts are unconstitutional. They could also make the broader political argument that turning the American president into a Russian-style, elected king will foster a form of inefficient, unresponsive and corrupt politics.

    Or, in the words of The New York Times columnist Ezra Klein, “it’s the corruption, stupid”.

    Time is of the essence. Russia shows the more time a “crown-president” is able to operate, the more entrenched this system becomes. For those hoping to preserve American democracy, the time is now for not just legal, but political resistance.

    William Partlett does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Trump is ruling like a ‘king’, following the Putin model. How can he be stopped? – https://theconversation.com/trump-is-ruling-like-a-king-following-the-putin-model-how-can-he-be-stopped-249721

    MIL OSI – Global Reports

  • MIL-OSI China: Chinese, Saudi FMs meet on bilateral relations

    Source: China State Council Information Office

    Chinese Foreign Minister Wang Yi discussed China-Saudi Arabia relations with his Saudi counterpart Faisal bin Farhan Al Saud on the sidelines of the G20 Foreign Ministers’ Meeting in Johannesburg on Thursday.

    Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, noted that since the establishment of diplomatic ties 35 years ago, China-Saudi Arabia relations have overtaken others from behind and are now at the forefront of China’s relations with Middle East countries.

    China cherishes the mutual trust and friendship established by the top leaders of the two countries and has always placed China-Saudi Arabia relations at a key position in its Middle East diplomacy, Wang underlined.

    China is willing to maintain exchanges at all levels and expand cooperation with Saudi Arabia in fields such as economy, trade, investment, new energy, digital economy, information and telecommunications, and high-end manufacturing, to push China-Saudi Arabia relations to a higher level, he said.

    The foreign minister further said that China appreciates Saudi Arabia’s active mediation of hotspot issues and is happy to see Saudi Arabia play a constructive role in regional peace and stability. With the Palestinian issue at the core of the Middle East issue, China will continue to stand firmly with its Arab brothers and make efforts to correct historical injustice thoroughly, and restore lasting peace in the region at an early date, Wang added.

    For his part, Faisal said that Saudi Arabia and China are comprehensive strategic partners and their relations are of vital importance. He said Saudi Arabia attaches great importance to cooperation with China and looks forward to taking the opportunity of the 35th anniversary of diplomatic ties to strengthen high-level exchanges with China and achieve more successes in bilateral relations.

    Sharing the same philosophy, Saudi Arabia and China are committed to maintaining peace and stability and agree to resolve differences through dialogue, said Faisal.

    Saudi Arabia attaches great importance to China’s role as a major country with important influence, and hopes to find more feasible political solutions to hotspot issues with China’s support, he said.

    Saudi Arabia opposes the forcible displacement of the Palestinian people in Gaza, highly appreciates China’s adherence to principles and upholding justice on the Palestinian-Israeli issue, and hopes and believes that China will continue to play a positive role for peace in the Middle East, Faisal added.

    The two sides also exchanged views on China’s relations with Arab and Gulf countries, and agreed to strengthen communication and coordination to achieve more concrete results in China-Arab and China-Gulf practical cooperation.

    MIL OSI China News

  • MIL-OSI China: Chinese, Russian FMs meet on bilateral ties

    Source: China State Council Information Office

    Chinese Foreign Minister Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, meets with Russian Foreign Minister Sergei Lavrov on the sidelines of the Group of 20 (G20) Foreign Ministers’ Meeting in Johannesburg, South Africa, Feb. 20, 2025. [Photo/Xinhua]

    Chinese Foreign Minister Wang Yi discussed China-Russia relations with his Russian counterpart Sergei Lavrov Thursday on the sidelines of the Group of 20 (G20) Foreign Ministers’ Meeting in Johannesburg, South Africa.

    Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, said that the China-Russia comprehensive strategic partnership of coordination for a new era is advancing to a higher level and broader dimensions.

    The two sides have maintained steady progress in mutually beneficial cooperation and engaged in close and effective strategic coordination, playing a crucial role in safeguarding the common interests of both countries and their peoples while advancing the process of global multipolarity, Wang said.

    China is willing to work with Russia to fully implement the important consensus reached by the two heads of state and to further advance China-Russia relations in the new year, he added.

    Lavrov, for his part, said that Russia is willing to work with China to strengthen high-level exchanges, deepen practical cooperation in economy, trade, finance, culture, and other fields, and promote the further development of the China-Russia comprehensive strategic partnership of coordination.

    Noting that Russia and China both uphold multipolarity and serve as stabilizing forces in a complex and turbulent world, he said that Russia highly recognizes the global initiatives put forward by China, values the high level of mutual trust between the two countries, and is willing to continue to strengthen communication and coordination with China under the BRICS mechanism, the Shanghai Cooperation Organization, the United Nations, the G20, and other frameworks.

    The two sides also exchanged views and coordinated positions on international and regional issues of mutual concern, including the situation in the Middle East.

    MIL OSI China News

  • MIL-OSI: Peyto Delivers Record Reserves Results in 2024

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 20, 2025 (GLOBE NEWSWIRE) — Peyto Exploration & Development Corp. (TSX: PEY) (“Peyto” or the “Company”) is pleased to present the results and in-depth analysis of its independent reserve report effective December 31, 2024. The evaluation encompassed 100% of Peyto’s reserves and was conducted by GLJ Ltd. (“GLJ”). The year 2024 marks the Company’s 26th year of successful reserves development.

    Peyto’s 2024 capital program marks the first full year of drilling high-quality inventory acquired in the Repsol Canada Limited Partnership transaction. Combined with drilling of high-graded locations on Peyto’s legacy assets, the Company delivered several new reserves records in 2024.

    2024 HIGHLIGHTS

    • The Company’s 2024 drilling program developed a record 457 BCFe1 (76.2 MMboe2) of new Proved Developed Producing (“PDP”) reserves at a Finding, Development and Acquisition (“FD&A”3) cost of $1.00/Mcfe ($6.01/boe). The Company’s continuous focus on finding and developing reserves at low costs has generated a five-year average PDP FD&A of $1.13/Mcfe.
    • The Peyto team delivered record production in December of 2024 of 136 Mboe/d (721 MMcf/d gas, 15,708 bbl/d NGLs), generating an exit rate capital efficiency4 of $9,700/boe/d, one of the best in Company history.
    • The Company’s systematic hedging program and market diversification strategy, along with Peyto’s low operating cost structure, were able to deliver an average field netback5 of $3.26/Mcfe ($19.59/boe). This resulted in a 3.3 times recycle ratio6 (2.1 times on an unhedged basis), the highest on record over the last 20 years, despite the lowest annual AECO natural gas price during the same period.     
    • The 2024 drilling program produced a record average PDP reserves-per-well booking in the Company’s history at 6.0 Bcfe, up from 4.3 Bcfe in 2023.
    • Peyto invested $458 million in capital7 in 2024, using 64% of funds from operations8 (“FFO”), while returning a record $258 million in dividends to shareholders.
    • In 2024, the Company drilled 58 wells previously booked as proved and probable undeveloped reserves. Peyto converted these locations to developed reserves at a record low finding cost of $0.66/Mcfe, 26% lower than the 2023 reserve report assignments. Peyto’s history of converting reserves at or below booked values provides confidence in the remaining future undeveloped reserves and the associated capital requirements.
    • The before tax, 10% discounted, net present value9 (“BT NPV10“) of the Company’s reserves are $4.9 billion, $7.1 billion, and $9.6 billion on a PDP, Total Proved (“TP”), and Total Proved plus Probable (“P+P”) basis, respectively. The Peyto capital program generated a 16% increase in PDP reserves value over last year, despite the decrease in forecasted prices used by GLJ in this year’s report.  
    • Peyto replaced 166%, 199% and 239% of annual production with new PDP, TP, and P+P reserves, respectively.
    • Peyto delivered reserves growth across all categories in 2024 from its successful drilling program. PDP reserves increased 7% to 474 MMboe, TP reserves increased 5% to 876 MMboe, and P+P reserves increased 5% to 1,367 MMboe. On a per share basis, reserves increased 5%, 3%, and 3% for PDP, TP, and P+P, respectively. Since inception, the Company has generated a 20% compound annual growth rate (“CAGR”10) on a PDP reserves per share basis.
    • FD&A costs, including the change in Future Development Capital (“FDC”), for TP and P+P reserve categories were $0.90/Mcfe ($5.38/boe) and $0.61/Mcfe ($3.67/boe), which represents a 37% and a 50% reduction from 2023, respectively.
    • The Reserve Life Index11 (“RLI”) for the PDP remains unchanged at 10 years despite an 11% increase in year-over-year fourth quarter production. TP and P+P reserves RLI remain strong at 18 and 28 years, respectively, supported by the Company’s industry leading cash costs. Peyto’s PDP reserve life is one of the longest in the industry.
    • Total Company reserve values (BT NPV10) for PDP, TP, and P+P reserves on a debt adjusted basis implies $17.81/share, $28.79/share, and $41.52/share, respectively, using the 3 Consultant Average (“3CA”) price forecast (GLJ, McDaniel, and Sproule).

    2025 CAPITAL BUDGET

    The Board of Directors of Peyto has approved a 2025 capital budget of $450–$500 million. The capital program is projected to add between 43,000 and 48,000 boe/d of new production by year end and more than offset the Company’s estimated 27% decline in base production. The Company expects to utilize four drilling rigs to drill 70–80 net horizontal wells, representing approximately 80% of the 2025 budget. The remaining capital is planned for optimization and maintenance projects for Peyto’s 15 operating gas plants and extensive gathering system infrastructure.  

    Peyto’s active hedging program has secured prices for approximately 473 MMcf/d of natural gas for 2025 at an average price over $4/Mcf, and when combined with the Company’s liquids hedges, provides revenue certainty of over $800 million, reflecting one of the highest levels of price protection in the industry. This revenue more than covers the expected capital program and dividends to shareholders for the year. Peyto’s strong hedge book, market diversification and industry leading cash costs supports the continued development of high-quality inventory despite current low AECO natural gas prices.

    While the threat of U.S. tariffs continues to weigh on the industry and the country, management believes Peyto’s commodity hedges and natural gas diversification contracts will not be directly impacted. The majority of Peyto’s market diversification arrangements that have US hub pricing exposure are physically delivered in Canada and not the US.   Additionally, most of the supplies used in the Company’s operations are sourced domestically, which should also limit any effects from counter tariffs that might be imposed by the Government of Canada. As always, Peyto will remain flexible and responsive to the business environment as it unfolds through 2025.

    HISTORICAL PERSPECTIVE

    Over the past 26 years, Peyto has acquired, explored and discovered 11.2 TCFe of Alberta Deep Basin natural gas and associated liquids, of which 59% has now been developed12.

    Peyto 26-year cumulative production*: 2.97 TCFe
    Total Proved + Probable Developed reserves* 3.61 TCFe
    Total Developed natural gas and liquids*: 6.57 TCFe
    Total Proved + Probable Undeveloped reserves*: 4.60 TCFe
    Total acquired, explored for and discovered*:
    * As at December 31, 2024
    11.17 TCFe

    Each year the Company invests in the discovery of new reserves and the efficient and profitable development of existing reserves into high netback natural gas and NGL production for the purpose of generating the maximum possible return on capital for its shareholders.

    In those 26 years, a total of $8.9 billion was invested in the Canadian economy in the acquisition and development of 6.6 TCFe of total developed natural gas and associated liquids at an average cost of $1.34/Mcfe, while a weighted average field netback3 of $3.45/Mcfe delivered $9.2 billion in FFO, $3.1 billion in dividends and distributions to shareholders, and resulted in a cumulative recycle ratio4 of 2.6 times. Royalty payments made to Alberta during this time have totaled over $1.3 billion.

    Based on the December 31, 2024 evaluation, the debt adjusted, Net Present Value of the Company’s remaining Total Proved plus Probable reserves (“P+P NPV”, 10% discount, less debt) was $42/share, comprised of $24/share of developed reserves and $18/share of undeveloped reserves. This includes a provision for all abandonment liability for wells, well sites, pipelines, and facilities for which Peyto has ownership and responsibility.

    2024 RESERVES REPORT AND ANALYSIS

    The following table summarizes Peyto’s reserves and the discounted Net Present Value of future cash flows, before income tax, using the 3 Consultant Average price forecast (GLJ, McDaniel, and Sproule), at January 1, 2025.

              Before Tax Net Present Value ($millions)
              Discounted at
    Reserve Category Gas
    (BCF)
    Oil &
    NGL
    (mstb)
    BCFe
    (6:1)
    MMboe
    (6:1)
    0% 5% 8% 10%
    Proved Developed Producing 2,435 67,968 2,843 474 $10,183 $6,693 $5,471 $4,879
    Proved Non-producing 49 1,049 55 9 $183 $110 $85 $73
    Proved Undeveloped 2,029 54,594 2,357 393 $6,814 $3,548 $2,560 $2,099
    Total Proved 4,513 123,611 5,255 876 $17,179 $10,351 $8,116 $7,051
    Probable 2,552 65,826 2,947 491 $11,705 $4,793 $3,185 $2,519
    Total Proved + Probable 7,065 189,437 8,202 1,367 $28,885 $15,143 $11,302 $9,569

    Note: Based on the GLJ report effective December 31, 2024. Tables may not add due to rounding.

    ANALYSIS FOR PEYTO SHAREHOLDERS

    One of the guiding principles at Peyto is “to tell you the business facts that we would want to know if our positions were reversed”. Therefore, each year Peyto provides an extensive analysis of the independent reserve evaluation that goes far beyond industry norms to answer the most important questions for shareholders:

    1. Base Reserves – How did the “base reserves” that were on production at the time of the last reserve report perform during the year, and how did any change in commodity price forecast affect their value?
    2. Value Creation – How much value did the 2024 capital investments create, both in current producing reserves and in undeveloped potential? Has the Peyto team earned the right to continue investing shareholders’ capital?
    3. Growth and Income – Are the projected cash flows capable of funding the growing number of undeveloped opportunities and a sustainable dividend stream to shareholders, without sacrificing Peyto’s financial flexibility or allowing for the timely repayment of any debt used?
    4. Risk Assessment – What are the risks associated with the assessment of Peyto’s reserves and the risk of recovering future cashflows from the forecast production streams?

    1.   Base Reserves

    Peyto’s existing PDP reserves at the start of 2024 (the base reserves) were evaluated and adjusted for 2024 production as well as any technical or economic revisions resulting from the additional twelve months of production and commodity price data. As part of GLJ’s independent engineering analysis, all base 2,968 producing reserve entities (zones/wells) were evaluated. These base producing wells and zones represent a total gross Estimated Ultimate Recoverable (“EUR”) volume of 9.1TCF (remaining PDP+PA reserves plus all cumulative production to date), which is 2% higher than the prior year estimate. As a result, Peyto is pleased to report that its total base reserves continue to meet expectations, which provides confidence in the prediction of future recoveries.

    The commodity price forecast used by GLJ in this year’s evaluation is lower than last year for both natural gas and natural gas liquids, which has had the effect of decreasing the Net Present Value of all reserve categories. For example, 2023’s PDP reserves decreased $268 million (10% of the debt adjusted 2023 NPV10) due to the difference in commodity price forecasts. Despite the decrease in value due to lower prices, record PDP additions from Peyto’s 2024 drilling program resulted in a 16% increase in the PDP BT NPV10 over 2023. The 3CA price forecast used in the evaluation is available on GLJ’s website at www.gljpc.com

    For 2025, Peyto estimates a total base decline rate of approximately 27% from the monthly average production in December 2024 of 136 Mboe/d. The historical base decline rates and capital programs are shown in the following table:

        2016   2017   2018   2019   2020   2021   2022   2023   2024 2025F
    Base Decline (%/yr)*   40%   37%   35%   29%   23%   27%   30%   29%   27%** 27%
    Capital Expenditures ($MM)   $469   $521   $232   $206   $236   $365   $529   $413   $458 $475

    *The base decline represents the aggregate annual decline of all wells on production at the end of the previous year.
    **2024 base decline adjusted to account for voluntarily shut-in volumes associated with uneconomic ethane production as well as the shut-down of sour gas production as Edson Gas Plant.

    2.   Value Creation/Reconciliation

    During 2024, Peyto invested a total of $458 million in organic activity to evaluate exploration lands, expand its pipeline gathering network, and drill, complete and tie-in 77 gross (75.3 net) wells. In keeping with Peyto’s strategy of maximizing shareholder returns, an evaluation of the economic outcome of this investment activity is necessary to determine, on a go-forward basis, the best use of shareholders’ capital. Not only does this look back analysis give shareholders a detailed report card on the capital that was invested, but it also helps illustrate the potential returns that can be generated from similar undeveloped future opportunities.

    Exploration, Development, and Acquisition Activity

    Of the total capital invested in exploration and development activities (excluding acquisitions) in 2024, approximately 1% was spent acquiring lands and seismic, 16% on pipeline and facility projects, and the remaining 83% was spent on drilling, completing, and connecting existing and new reserves. This capital program delivered an incremental 47,300 boe/d, after adjustments for base production backout and voluntary shut-ins, generating a capital efficiency of $9,700/boe/d. Of the 77 gross wells drilled, 58 or 75%, were previously identified as undeveloped reserves in last year’s reserve report (47 Proved, 11 Probable locations). The remaining 19 wells were new locations developed in the year, on both existing and acquired lands, and were not recognized in last year’s report.

    The undeveloped reserves at year-end 2023 originally booked to the 58 drilled locations, referred to above, totaled 305 BCFe (5.3 BCFe/well) of Proved plus Probable Undeveloped reserves for a forecast capital investment of $270 million ($0.89/Mcfe). In actuality, 441 BCFe (7.6 BCFe/well) were developed for $289 million of capital on these wells during 2024, resulting in a conversion cost of $0.66/Mcfe or a 26% improvement over what was previously forecast. Peyto continued to increase average horizonal lengths through 2024 which had the result of increasing total capital spent but also significantly improving year-over-year finding costs with greater reserve recoveries. Additionally, the results generated from both Peyto legacy lands and Repsol acquired lands have outperformed expectations throughout the year.

    The following table illustrates the Company’s historical performance in converting predicted future undeveloped locations into producing wells and demonstrates that, other than the rapid inflation experienced in 2022, Peyto has typically converted more reserves at a lower cost than was forecast.

    Reserve
    Year
    Total
    Drills
    Booked
    Locations
    Converted
    Booked/
    Total
    Forecast Outcome Forecast
    Cost per
    Unit
    Actual Outcome Actual
    Cost per
    Unit
    Actual/
    Forecast
    Cost per
    Unit
      gross wells gross wells   BCFe Capex* $MM $/Mcfe BCFe Capex* $MM $/Mcfe  
    2015 140 103 74 % 307 $ 456 $ 1.49 348 $ 385 $ 1.11 -26 %
    2016 128 82 64 % 254 $ 297 $ 1.17 254 $ 246 $ 0.97 -17 %
    2017 142 97 68 % 298 $ 295 $ 0.99 321 $ 305 $ 0.95 -4 %
    2018 70 37 53 % 104 $ 115 $ 1.10 120 $ 118 $ 0.98 -11 %
    2019 61 39 64 % 129 $ 111 $ 0.86 123 $ 109 $ 0.88 +2 %
    2020 64 52 81 % 172 $ 158 $ 0.92 165 $ 135 $ 0.82 -11 %
    2021 95 61 64 % 221 $ 193 $ 0.87 227 $ 192 $ 0.84 -3 %
    2022 95 79 83 % 331 $ 268 $ 0.81 333 $ 320 $ 0.96 +19 %
    2023 72 44 61 % 171 $ 159 $ 0.93 236 $ 196 $ 0.83 -11 %
    2024 77 58 75 % 305 $ 270 $ 0.89 441 $ 289 $ 0.66 -26 %
    Total 944 652 69 % 2,292 $ 2,322 $ 1.01 2,568 $ 2,295 $ 0.89 -12 %

    *Capex represents only well related capital for drilling, completion, equipping and tie-in

    This annual analysis of reserves that are converted from undeveloped to developed provides confidence in the validity of the remaining future undeveloped reserves and the associated capital requirements. This helps Peyto predict future reserve recoveries and capital requirements and reduces the risk associated with valuing future undeveloped locations.

    Value Reconciliation

    In order to measure the success of all capital invested in 2024, it is necessary to quantify the total amount of value created during the year and compare that to the total amount of capital invested. Each year, Peyto runs last year’s reserve evaluation with this year’s price forecast to remove the change in value attributable to commodity prices. This approach isolates the value created by the Peyto team from the value created (or lost) by those changes outside of their control (ie. Commodity prices). Since capital investments can be funded from a combination of cash flow, debt and equity, it is necessary to know the change in debt and the change in shares outstanding to see if the change in value is truly accretive to shareholders.

    At year-end 2024, Peyto’s estimated net debt13 decreased by approximately 0.7% or $10 million from December 31, 2023, while the number of shares outstanding increased by 2%, due to the Company’s stock option program, to 197.8 million shares. In calculating the change in debt, the Company included all capital expenditures, and the total fixed and performance-based compensation paid out for the year. Although these estimates are believed to be accurate, they remain unaudited at this time and may be subject to change.

    Based on this reconciliation of changes in BT NPV0, the Peyto team was able to create $1.9 billion of PDP, $2.4 billion of TP, and $3.6 billion of P+P undiscounted reserve value, with $458 million of capital investment. The ratio of capital expenditures to value creation is what Peyto refers to as the NPV0 recycle ratio4, which is simply the undiscounted value addition, resulting from the capital program and acquisition, divided by the capital and acquisition investment. For 2024, the PDP NPV0 recycle ratio is 4.1, which means for each dollar invested, the Peyto team was able to create 4.1 new dollars of undiscounted PDP reserve value.

    The historic NPV0 recycle ratios are presented in the following table.

        2015   2016   2017   2018   2019   2020   2021   2022   2023  2024 10 yr
    Wt.
    Avg.
    Capital Investment ($MM)   $594   $469   $521   $232   206   $236   $365   $529   $1,112 $458
    NPV0Recycle Ratio                      
    Proved Developed Producing   2.3   2.9   2.3   4.6   1.8   3.5   5.2   3.6   2.0 4.1 3.0
    Total Proved   3.3   4.2   3.2   11.7   5.5   6.9   5.5   4.0   4.4 5.3 4.8
    Total Proved + Probable   5.0   7.3   4.0   15.1   9.2   6.5   11.5   3.8   7.8 7.9 7.2

    *NPV0(net present value) recycle ratio is calculated by dividing the undiscounted NPV of reserves added in the year by the total capital cost for the period (eg. 2024 Proved Developed Producing $1,857/$458) =4.1).

    3.   Growth and Income

    Over the past 22 years, Peyto has paid a total of $22.63/share to shareholders in the form of distributions and dividends. Peyto’s objective, as a dividend paying, growth-oriented corporation, is to profitably grow the resources which generate sustainable income (dividends) for shareholders. For income to be sustainable and grow, Peyto must profitably find and develop more reserves. Simply increasing production from the existing reserves will not make that income more sustainable. RLI, or a reserve to production ratio, provides a measure of this long-term sustainability.

    During 2024, the Company’s capital program was successful in replacing 166% of annual production with new PDP reserves, resulting in 7% growth. Fourth quarter production increased 11%, from 120 Mboe/d (623 MMcf/d gas, 16,175 bbl/d NGLs) to 133 Mboe/d (708 MMcf/d gas, 15,409 bbl/d NGLs). The change in both PDP reserves and fourth quarter production held the PDP RLI (ratio of the two) flat at 10 years. For comparative purposes, the TP and P+P RLI were 18 and 28 years, respectively. Management believes that the most meaningful method to evaluate the current reserve life is by dividing the PDP reserves by the actual fourth quarter annualized production. This way production is being compared to producing reserves as opposed to producing plus non-producing reserves.

    The following table highlights the Company’s historical RLI.

      2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
    Proved Developed Producing 7 7 7 9 9 9 9 9 10 10
    Total Proved 11 11 11 16 19 18 16 15 19 18
    Total Proved + Probable 17 18 18 25 29 27 25 24 30 28

    Future Undeveloped Opportunities

    Every year Peyto finds and develops new drilling inventory that GLJ reviews to create a forecast of future development activity. Their forecast is by no means a complete assessment of Peyto’s current opportunities, nor is Peyto content to just sit back and harvest these current opportunities. Each year the results from the drilling and acquisition activity spawn additional offsetting locations both on currently owned lands and lands Peyto does not yet own but attempts to acquire.

    As of December 31, 2024, the future drilling locations recognized in the reserve report totaled 1,604 gross (1,293 net). This is down slightly from the previous year of 1,616 (1,292 net) as a result of optimization of future locations. Of these future locations, 1,056 (66%) are categorized as Proven Undeveloped by the independent reserve evaluators, while 548 (34%) are Probable Undeveloped locations. The net reserves associated with the undeveloped locations (not including existing uphole zones) totals 4.6 TCFe (3.6 BCFe/well) consisting of 3.96 TCF of natural gas and 106 MMbbls of NGLs, while the capital required to develop them is estimated at $5.7 billion or $1.23/Mcfe. This development is forecast to create Before Tax Net Present Value of $4.0 billion (at 10% discount rate, inclusive of profit after capital recovery and future abandonment liability) or $18 per share (debt adjusted) of incremental value at the 3CA commodity price forecast.

    The undiscounted forecast for Net Operating Income for the TP and P+P reserves over the future development capital schedule, as contained in the evaluator’s report, totals $8.9 billion and $15.8 billion, respectively, more than sufficient to fund the future development capital shown in the table below, ensuring those reserve additions are accretive to shareholders.

      Future Development Capital
      TP Reserves P+P Reserves
    Year Undisc., ($Millions) Undisc., ($Millions)
    2025 493 496
    2026 483 498
    2027 423 559
    2028 533 602
    2029 575 603
    2030 542 598
    2031 338 597
    2032 601
    Thereafter 1,154
    Total 3,386 5,707

    4.   Risk Assessment

    Effectively 100% of Peyto’s natural gas and natural gas liquid reserves exist in low permeability (tight), sandstone reservoirs in the Alberta Deep Basin. In almost all cases, the volumetric capacity of these sandstone reservoirs can be determined using traditional geological and reservoir engineering methods, which, when complimented by production performance data, increases the certainty of the reserve estimates. In the majority of Peyto’s core areas, continuous drilling activity has further refined the geologic and geometric definition of these reservoirs to a higher level of certainty.

    In addition, these Deep Basin sandstone reservoirs do not contain mobile water, nor are they supported by active aquifers. Mobile water traditionally increases the risk associated with reservoir recovery by impeding the flow of hydrocarbons through the reservoir and up the wellbore. Water production, separation and disposal processes also increase operating costs which shortens the economic life of producing wells, further contributing to reduced recovery. As many of these traditional reserves determination and recovery risks are not present in Peyto’s Deep Basin reservoirs, Management has a higher level of confidence in its reserves and their ultimate recovery.

    Peyto’s high operating margins have meant that forecasts of net operating income are less affected by commodity price volatility than in most traditional reserve evaluations. As a result, the predicted economic life of Peyto’s producing wells is less sensitive to changes in commodity prices. These high operating margins are achieved through the Company’s high level of ownership and control of all levels of production operations, through a concentrated geographic asset base, and by striving to be the lowest cost producer in the industry.

    Peyto attempts to further reduce the risk of predicted operating incomes with an active market diversification and hedging program that is designed, over time, to smooth out the volatility in both Alberta and US natural gas markets through a series of frequent transactions which is like “dollar cost averaging” the future gas price.

    Finally, Peyto is the operator of over 96% of its producing wells, which fits with the Company’s own and control strategy. As of December 31, 2024, Peyto owned a total of 2,819 net wells of which over 90% are on production today and most are expected to produce for decades to come. Despite the Company’s very low non-producing well count, Peyto has an active well retirement program where 14 net wells were abandoned in 2024.   For perspective, the current existing developed reserves have a forecast value of $5.6 billion (NPV10 of the PDP + PA and PDNP + PA), while the cost to abandon and reclaim all wells, well sites, pipelines, and facilities is estimated at $80 million using the same 10% discount rate for future costs. Peyto’s future abandonment and reclamation costs are substantially within the province of Alberta and are estimated in a manner that is consistent with Alberta Energy Regulator (“AER”) Directive 11 and other Alberta-based exploration and production companies. Peyto plans to spend approximately $10 million on abandonment and reclamation activities in 2025 which exceeds the mandatory spending requirements as set out by the AER for the period.  

    PERFORMANCE RATIOS

    The following table highlights annual performance ratios for the last decade. These can be used for comparative purposes, but it is cautioned that on their own they do not measure investment success.

        2024     2023     2022     2021     2020     2019     2018     2017     2016     2015  
    Proved Developed Producing                    
    FD&A ($/Mcfe)   $1.00     $1.21     $1.41     $0.97     $1.06     $1.55     $1.18     $1.36     $1.44     $1.64  
    RLI (yrs)   10     10     9     9     9     9     9     7     7     7  
    Recycle Ratio   3.3     2.9     2.8     2.8     1.5     1.4     2.3     2.1     1.8     2.0  
    Reserve Replacement   166 %   400 %   165 %   188 %   127 %   75 %   98 %   171 %   153 %   193 %
    Total Proved                    
    FD&A including the change in FDC ($/Mcfe)   $0.90     $1.43     $1.75     $1.10     $0.20     $1.41     $1.21     $1.39     $1.01     $0.72  
    RLI (yrs)   18     19     15     16     18     19     16     11     11     11  
    Recycle Ratio   3.6     2.5     2.3     2.4     8.0     1.5     2.2     2.0     2.6     4.5  
    Reserve Replacement   199 %   727 %   159 %   194 %   132 %   137 %   294 %   225 %   183 %   188 %
    Future Development Capital ($ millions)   $3,386     $3,352     $2,081     $1,979     $1,917     $2,107     $1,971     $1,488     $1,305     $1,381  
    Total Proved + Probable                    
    FD&A including the change in FDC ($/Mcfe)   $0.61     $1.22     $2.03     $1.09     ($0.01 )   $1.25     1.02     $1.49     $0.62     $0.54  
    RLI (yrs)   28     30     24     25     27     29     25     18     18     17  
    Recycle Ratio   5.3     2.9     1.9     2.5     N/A     1.7     2.6     1.9     4.2     6.1  
    Reserve Replacement   239 %   1077 %   167 %   308 %   167 %   140 %   342 %   279 %   283 %   287 %
    Future Development Capital ($millions)   $5,707     $5,764     $3,855     $3,612     $3,308     $3,547     $3,445     $2,978     $2,563     $2,657  

    See Non-GAAP Financial Ratios in the Advisories section of this news release for details on the calculation of the above metrics.

    RESERVES COMMITTEE

    Peyto has a reserves committee, comprised of a majority of independent board members, that reviews the qualifications and appointment of the independent reserve evaluators. The committee also reviews the procedures for providing information to the evaluators. All booked reserves are based upon annual evaluations by the independent qualified reserve evaluators conducted in accordance with the COGE (Canadian Oil and Gas Evaluation) Handbook and National Instrument 51-101. The evaluations are conducted using all available geological and engineering data. The reserves committee has reviewed the reserves information and approved the reserve report.

    GENERAL

    A complete filing of the Statement of Reserves (form 51-101F1), Report on Reserves (form 51-101F2), and Report of Management and Directors on Oil and Gas Disclosure (form 51-101F3) will be available in the Annual Information Form to be filed by the end of March 2025. Shareholders are encouraged to actively visit Peyto’s website located at www.peyto.com. For further information, please contact Jean-Paul Lachance, President and Chief Executive Officer of Peyto at (403) 261-6081.

    ADVISORIES

    Unaudited Financial Information

    Certain financial and operating information included in this news release including, without limitation, exploration and development expenditures, acquisitions, field netbacks, funds from operations, net debt, FD&A costs, Finding & Development costs excluding acquisitions, acquisition costs, and recycle ratio, are based on estimated unaudited financial results for the year ended December 31, 2024, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2024 and changes could be material.

    Information Regarding Disclosure on Oil and Gas Reserves

    Some values set forth in the tables above may not add due to rounding. It should not be assumed that the estimates of future net revenues presented in the tables above represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.

    Forward-Looking Information

    This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: management’s assessment of Peyto’s future plans and operations, including the 2025 capital expenditure program, the volumes and estimated value of Peyto’s reserves, the life of Peyto’s reserves, production estimates, project economics including NPV, netback and recycle ratio, the ability to enhance value of reserves for shareholders and ensure the reserves generate the maximum possible return; management’s belief that Peyto’s commodity hedges and the majority of the Company’s natural gas diversification contracts will not be impacted directly by potential tariffs imposed by the U.S.; and management’s assessment of limited impact from counter tariffs that might be imposed by Canada on U.S. imports.   Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Peyto which have been used to develop such statements and information, but which may prove to be incorrect. Although Peyto believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking information and statements because Peyto can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, the impact of increasing competition, the timely receipt of any required regulatory approvals, the ability of Peyto to obtain qualified staff, equipment and services in a timely and cost efficient manner, drilling results, field production rates and decline rates, the ability to replace and expand reserves through development and exploration, future commodity prices, currency, exchange and interest rates, regulatory framework regarding royalties, taxes, tariffs and environmental matters and the ability of Peyto to successfully market its oil and natural gas products. By their nature, forward-looking information and statements are subject to numerous risks and uncertainties, some of which are beyond these parties’ control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Peyto’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information and statements will transpire or occur, or if any of them do so, what benefits that Peyto will derive therefrom. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Peyto does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

    This news release contains information, including in respect of Peyto’s 2025 capital program, which may constitute future oriented financial information or a financial outlook. Such information was approved by the Board of Directors of Peyto on February 20, 2025, and such information is included herein to provide readers with an understanding of the Company’s anticipated capital expenditures for 2025. Readers are cautioned that the information may not be appropriate for other purposes.

    Barrels of Oil Equivalent
    Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

    Drilling Locations
    This news release discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the independent engineering evaluation of Peyto’s oil, NGLs and natural gas interests prepared by GLJ dated February 20, 2025 and effective December 31, 2024 (the “Peyto Report”). Unbooked locations are internal estimates based on prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves.   Unbooked locations have been identified by management as an estimation of Peyto’s multi‐year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Peyto will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The drilling locations on which Peyto actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, some of the other unbooked drilling locations are further away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations, and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production.

    Non-GAAP and Other Financial Measures

    Throughout this news release, Peyto employs certain specified financial measures to analyze financial and operating performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. Such metrics have been included by Peyto to give readers additional measures to evaluate the Peyto’s performance; however, such measures are not reliable indicators of the future performance of Peyto and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon.

    Non-GAAP Financial Measures

    Funds from Operations
    “Funds from operations” is a non-GAAP measure which represents cash flows from operating activities before changes in non-cash operating working capital and provision for future performance-based compensation. Management considers funds from operations and per share calculations of funds from operations to be key measures as they demonstrate the Company’s ability to generate the cash necessary to pay dividends, repay debt and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds from operations provides a useful measure of Peyto’s ability to generate cash that is not subject to short-term movements in operating working capital. The most directly comparable GAAP measure is cash flows from operating activities.

    Capital Expenditures
    Peyto uses the term capital expenditures as a measure of capital investment in exploration and production activity, as well as property acquisitions and divestitures, and such spending is compared to the Company’s annual budgeted capital expenditures. The most directly comparable GAAP measure for total capital expenditures is cash flow used in investing activities.

    Net Debt
    “Net debt” is a non-GAAP financial measure that is the sum of long-term debt and working capital excluding the current financial derivative instruments and current portion of lease obligations. It is used by management to analyze the financial position and leverage of the Company. Net debt is reconciled to long-term debt which is the most directly comparable GAAP measure.

    Non-GAAP Financial Ratios

    Netback per MCFE
    “Netback” is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes “field netback per Mcfe” as commodity sales from production, plus net third party sales, if any, plus other income, less royalties, operating, and transportation expense divided by production.

    Finding, Development and Acquisition Costs
    FD&A (finding, development and acquisition) costs are used as a measure of capital efficiency and are calculated by dividing the capital costs for the period, plus acquisition costs and including the change in undiscounted FDC, by the change in the reserves, incorporating revisions and production, for the same period (eg. 2024 Total Proved ($458MM+$0MM+$33MM)/( 875.9Mboe-830.5Mboe+45.8Mboe) = $5.38/boe or $0.90/Mcfe).

    Finding and Development Costs
    F&D (finding and development) costs are used as a measure of capital efficiency and are calculated by dividing the capital costs for the period, including the change in undiscounted FDC, by the change in the reserves, incorporating revisions and production, for the same period.

    Reserve Life Index
    The RLI is calculated by dividing the reserves (in boes) in each category by the annualized Q4 average production rate in boe/year (eg. 2024 Proved Developed Producing 473,834Mboe/(133Mboe/d x366) =9.7). Peyto believes that the most accurate way to evaluate the current reserve life is by dividing the proved developed producing reserves by the annualized actual fourth quarter average production. In Peyto’s opinion, for comparative purposes, the proved developed producing reserve life provides the best measure of sustainability.

    NPV0Recycle Ratio
    The NPV0Recycle Ratio is the ratio of capital expenditures to value creation, which is simply the undiscounted value addition, resulting from the capital program and acquisition, divided by the capital and acquisition investment.

    Recycle Ratio
    The Recycle Ratio is calculated by dividing the field netback per boe, by the FD&A costs for the period (eg. 2024 Proved Developed Producing $19.59/boe/$6.01/boe=3.3). The recycle ratio compares the netback from existing reserves to the cost of finding new reserves and may not accurately indicate investment success unless the replacement reserves are of equivalent quality as the produced reserves.

    Reserve Replacement Ratio
    The reserve replacement ratio is determined by dividing the yearly change in reserves before production by the actual annual production for the year (eg. 2024 Total Proved (875.9Mboe-830.5Mboe+45.8Mboe )/45.8Mboe =199%).

    Compound Annual Growth Rate
    The compound annual growth rate (CAGR) is the annualized average rate of PDP reserves growth from 1998 to 2024, assuming growth takes place at an exponentially compounded rate. 

    Capital Efficiency
    Capital Efficiency refers to how efficiently the Company utilizes its capital investment to generate production. It is calculated by dividing the capital costs for the period, plus acquisition costs, by December production volumes added from the 2024 capital program (eg. 2024 capital efficiency ($458MM)/( 47,300 boe/d) = $9,700 per boe/d).

    The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
    ___________________________________

    1BCF and TCF refers to billions and trillions of cubic feet, respectively
    2 MMboe refers to million barrels of oil equivalent
    3F&D and FD&A are non-GAAP financial ratios. See “non-GAAP and Other Financial Measures” in this news release
    4Capital efficiency is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    5Field netback operations is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    6Recycle ratio and NPV Recycle Ratio are non-GAAP financial ratios. See “non-GAAP and Other Financial Measures” in this news release
    7Capital expenditures is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release
    8Funds from operations is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release
    9It should not be assumed that the estimates of future net revenues (NPVs) represent the fair market value of the reserves
    10Compound annual growth rate (CAGR) is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    11RLI is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release
    12Developed Reserves is Total Proved + Probable Developed Reserves and includes Proved + Probable Developed Producing reserves and Proved + Probable Developed Non-Producing reserves
    13Net debt is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release

    The MIL Network

  • MIL-Evening Report: Trump is ruling like a ‘king’, following the Putin model. How can he be stopped?

    Source: The Conversation (Au and NZ) – By William Partlett, Associate Professor of Public Law, The University of Melbourne

    A month in, and it is clear even to conservatives that US President Donald Trump is attempting to fundamentally reshape the role of the American president.

    Trump and his supporters sees the natural authority of the American president in broad terms, similar to those of the Russian president, or a king. Trump, in fact, has already likened himself to a king.

    This desire to “Russify” the presidency is not an accident: Trump and many of his supporters admire the king-like power that Vladimir Putin exercises as Russian president.

    Understanding how Trump is attempting to transform presidential power is key to mobilising in the most effective way to stop it.

    Decrees by a ‘king’

    Russia’s system of government is what I call a “crown-presidential” system, which makes the president a kind of elected king.

    Two powers are central to this role.

    First, like a king, the Russian “crown-president” does not rely on an elected legislature to make policy. Instead, Putin exercises policy-making authority unilaterally via decree.

    Putin has used decrees to wage wars, privatise the economy and even to amend the constitution to lay claim to the parts of Ukraine occupied by Russia since 2014.

    He has also used these decrees in a performative way, for example, by declaring pay raises for all Russian state employees without any ability to enforce it.

    Over the last month, Trump has made similar use of decrees (what the White House now terms “presidential actions”).

    He has issued scores of presidential decrees to unilaterally reshape vast swathes of American policy – far more than past presidents. Trump sees these orders as a way of both exercising and demonstrating his vast presidential power.

    Control over the bureaucracy

    Second, like a king, Putin does not allow the Russian legislature to use the law to organise the executive branch and create agencies independent of presidential control. Instead, he has unquestioned dominance over both the organisation and staffing of the executive branch. This has given him vast power to dominate politics by controlling information gathering and legal prosecutions.

    A similar push is underway in the United States. Trump has appointed key loyalists to head the Department of Justice and Federal Bureau of Investigation.

    Moreover, he is seeking to restructure the executive branch by abolishing some agencies altogether and vastly reducing the size of the workforce in others.

    Can the courts stop Trump?

    Trump’s attempt to Russify the American presidency undermines the American constitutional order.

    Courts are the natural “first responders” in this kind of crisis. And many courts have blocked some of Trump’s early decrees.

    This legal response is important. But it is not enough on it own.

    First, the US Supreme Court might be more willing to accept this expansion of presidential power than lower courts. In a ruling last year, for example, the court granted the president immunity from criminal prosecution, showing itself to be sympathetic to broad understandings of executive power.

    Second, presidential decrees can be easily withdrawn and modified. This can allow Trump and his legal team to recalibrate as his decrees are challenged and find the best test cases to take to the Supreme Court.

    Third, parts of the conservative right have long argued for a far more powerful president. For instance, the idea of a “unitary executive” has been discussed in conservative circles for years. This essentially claims that the president should be able to direct and control the entire executive branch, from the bureaucracy to prosecutors to the FBI.

    These arguments are already being made to justify Trump’s actions. As Elon Musk has said, “you could not ask for a stronger mandate from the public” to reform the executive branch. These arguments will be made to courts to justify Trump’s expansion of power.

    Fourth, even if the Supreme Court does block some decrees, it is possible the White House will simply ignore these actions. We had an early glimpse of this when Trump posted that “He who saves his Country does not violate any Law”.

    Vice President JD Vance has also said judges “aren’t allowed” to block the president’s “legitimate power”.

    The importance of political mobilisation and messaging

    Trump’s aggressive use of presidential power is not just a constitutional crisis, it is a political one. For those seeking to resist, this is too important to just be left to the courts; it must also involve America’s key political institutions.

    The most obvious place to start is in Congress. Lawmakers must act decisively to assert the legal power granted to them in the constitution to check the power of the presidency. This would include active Congressional use of its budgeting power, as well as its oversight powers on the presidency.

    This could happen now if a few Republicans were to take a principled position on important constitutional issues, though nearly all have so far preferred to fall in line. Democrats could retake both branches of Congress in the midterm elections in 2026, though, and assert this power.

    The states can and should also act to resist this expansion of presidential power. This action could take many forms, including refusing to deploy their traditional police powers to enforce decrees they view to be unconstitutional or unlawful.

    In mobilising to defend the constitution, these institutions could appeal to the American people with more than the narrow legal argument that Trump’s acts are unconstitutional. They could also make the broader political argument that turning the American president into a Russian-style, elected king will foster a form of inefficient, unresponsive and corrupt politics.

    Or, in the words of The New York Times columnist Ezra Klein, “it’s the corruption, stupid”.

    Time is of the essence. Russia shows the more time a “crown-president” is able to operate, the more entrenched this system becomes. For those hoping to preserve American democracy, the time is now for not just legal, but political resistance.

    William Partlett does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Trump is ruling like a ‘king’, following the Putin model. How can he be stopped? – https://theconversation.com/trump-is-ruling-like-a-king-following-the-putin-model-how-can-he-be-stopped-249721

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: France’s Minister Valls faces tough talks in New Caledonia over future

    By Patrick Decloitre, RNZ Pacific correspondent French Pacific desk

    As French Minister for Overseas Manuel Valls lands in New Caledonia tomorrow to pursue talks on its political future, the situation on the ground has again gained tension over the past few days.

    The local political spectrum is deeply divided between the two main opposing camps, the pro-independence and those wanting New Caledonia to remain part of France.

    The rift has already culminated in May 2024 with rioting resulting in 14 deaths, several hundreds injured, thousands of job losses due to the destruction, burning and looting of businesses, and a material cost of over 2 billion euros (NZ$3.7 billion).

    Valls hosted talks in Paris with every party represented in New Caledonia’s Congress on February 4-9.

    Those talks, held in “bilateral” mode, led to his decision to travel to Nouméa and attempt to bring everyone to the same negotiating table.

    It is all about finding an agreement that would allow an exit from the Nouméa Accord and to draw a fresh roadmap for New Caledonia’s political future.

    However, in the face of radically different and opposing views, the challenge is huge.

    The two main blocs, even though they acknowledged the Paris talks may have been helpful, still hold very clear-cut and antagonistic positions.

    Each camp seems to have their own interpretation of the 1998 Nouméa Accord, which has until now defined a roadmap for further autonomy and a gradual transfer of powers.

    The main bloc within the pro-independence side, Union Calédonienne (UC), which since last year de facto controls the wider FLNKS (Kanak Socialist National Liberation Front), has been repeatedly placing as its target a new “Kanaky Agreement” to be signed by 24 September 2025 and, from that date, a five-year “transition period” to attain full independence from France.

    Within the pro-independence camp, more moderate parties, such as PALIKA (Kanak Liberation Party) and UPM (Progressist Union in Melanesia), have distanced themselves from a UC-dominated FLNKS, and are favourable to some kind of “independence in association with France”.

    On the pro-France side, the two main components, the Les Loyalistes and the Rassemblement-LR, have shown a united front. One of their main arguments is based on the fact that in 2018, 2020 and 2021, three successive referenda on self-determination have resulted in three votes, each of those producing a majority rejecting independence.

    However, the third and latest poll in December 2021 was boycotted by most of the pro-independence voters.

    The pro-independence parties have since challenged the 2021 poll result, even though it has been ruled by the courts as valid.

    Pro-France parties are also advocating for a change in the political system to give each of New Caledonia’s three provinces more powers, a move they described as an “internal federalism” but that critics have decried, saying this amounted to a kind of apartheid.

    Talks required since 2022
    The bipartisan talks became necessary after the three referendums were held.

    The Nouméa Accord stipulated that in the event that three consecutive referendums rejected independence, then all political stakeholders should “meet and examine the situation”.

    There have been earlier attempts to bring about those talks, but some components of the pro-independence movement, notably the UC, have consistently declined.

    Under a previous government, French Minister for Home Affairs and Overseas territories Gérald Darmanin, after half a dozen inconclusive trips to New Caledonia, tried to push some of the most urgent parts of the political agreement through a constitutional reform process, especially on a change to New Caledonia’s list of eligible registered voters at local elections.

    This was supposed to allow citizens who have resided in New Caledonia for at least ten uninterrupted years to finally cast their votes. Until now, the electoral roll has been “frozen” since 2009 — only those residing before 1998 had the right to vote.

    Pro-independence parties protested, saying this was a way of “diluting” the indigenous Kanak votes.

    The protest — in the name of “Kanak existential identity” — gained momentum and on 13 May 2024 erupted into riots.

    Now the sensitive electoral roll issue is back on the agenda, only it will no longer be tackled separately, but will be part of a wider and comprehensive scope of talks regarding New Caledonia’s political future.

    Heavy schedule for Valls
    On Thursday, Valls unveiled his programme for what is scheduled to be a six-day stay in New Caledonia from 22-26 February 2025.

    During this time, he will spend a significant amount of time in the capital Nouméa, holding talks with political parties, economic stakeholders and representatives of the civil society and law and order agencies.

    He will also travel to rural parts of New Caledonia.

    In the capital, two solid days have been earmarked for “negotiations” at the Congress, with the aim of finding the best way to achieve a political agreement, if all parties agree to meet and talk.

    On Tuesday, February 25, Valls also intends to pay homage and lay wreaths on independence leader Jean-Marie Tjibaou and anti-independence leader Jacques Lafleur’s graves.

    They were the leaders of FLNKS and (pro-France) RPCR, who eventually signed the Matignon Accords in 1998 and shook hands after half a decade of quasi civil war, during the previous civil unrest in the second half of the 1980s.

    Valls was then a young member of French Prime Minister Michel Rocard (Socialist) who enabled the Matignon agreement.

    On several occasions, over the past few days, Valls has stressed the grave situation New Caledonia has been facing since the riots, the “devastated” economy and the need to restore a bipartisan dialogue.

    He told public broadcaster NC La Première that since the unrest started had France had provided financial support to sustain New Caledonia’s economy.

    ‘Fractures and deep wounds within New Caledonia’s society’
    “But blood has been shed . . . there have been deaths, injuries, there are fractures and deep wounds within New Caledonia’s society,” Valls said.

    “And to get out of this, dialogue is needed, to find a compromise . . . to prevent violence from coming back. I still believe those (opposing) positions are reconcilable, even though they’re quite far apart,” he said.

    “I’m very much aware of the difficulties . . . but we have to find an agreement, a compromise.”

    One clear indication that during his visit to New Caledonia the French minister will be walking on shaky ground came a few days ago.

    When, speaking to French national daily Le Monde, he recalled the Nouméa Accord included a wide range of possible perspectives from “a shared sovereignty” to a “full sovereignty”, there was an immediate outcry from the pro-French parties, who steadfastly brandished the three recent referendums opposing independence and urging the minister to respect those “democratic” results.

    “Respecting the Nouméa Accord means respecting the choice of New Caledonians”, said Les Loyalistes-Le Rassemblement-LR in a media release.

    “Shared sovereignty is the current situation. It’s all in the Nouméa Accord, which itself is enshrined in the French Constitution”, Valls replied.

    Over the past six months, several notions have emerged in terms of a political future for New Caledonia.

    It all comes down to wording: from independence-association (Cook Islands style), to outright “independence” or “shared sovereignty” (as suggested by French Senate President Gérard Larcher during his visit in October 2024).

    A former justice minister under Socialist President François Hollande, Jean-Jacques Urvoas, well-versed in New Caledonian affairs, suggested an innovative wording which, he believed, could bring about some form of consensus — the term “associated state”, could be slightly modified into “associated country” (“country” being one of the ways to describe New Caledonia, also described as a sui generis entity under French Law).

    Urvoas said this would make the notion more palatable.

    Pro-France meetings indoors
    On Wednesday evening, in an indoor multi-purpose hall in Nouméa, an estimated 2000 sympathisers of pro-France Rassemblement and Loyalists gathered to hear and support their leaders who had come to explain what was discussed in Paris and reiterate the pro-France bloc’s position.

    “We told [Valls] the ‘bilaterals’ are over. Now we want plenary discussions or nothing,” pro-France Virginie Ruffenach told the crowd.

    “We will tell him: Manuel, your full sovereignty is No Pasaran! (in Spanish ‘Will not pass’, a reference to Valls’s Spanish heritage),” said Nicolas Metzdorf, who is also one of the two New Caledonian MPs in the French National Assembly, speaking to supporters brandishing blue, white and red French flags.

    Metzdorf said he hoped that supporters would show up during the minister’s visit with the same flags “to remind him of three “no” votes in the three referenda.

    A ban on all open-air public meetings is still in force in Nouméa and its greater area.

    The two-flag driving licence declared illegal. Image: New Caledonia govt

    Double flags banned on driving licences
    Adding to the current tensions, an announcement also came earlier this week regarding a court ruling on another highly sensitive issue — the flag.

    The ruling came in an appeal case from the Paris Administrative Court.

    It overturned a ruling made in 2023 by the former New Caledonian (pro-independence) territorial government to add the Kanak flag to the local driving licence, next to the French flag.

    In its February 14 ruling, the Appeal Court stated that the Kanak flag could not be used on such official documents because “it is not the official flag” of New Caledonia.

    The court once again referred to the Nouméa Accord, which said the Kanak flag, even though it was often used alongside the French flag, had not been formally endorsed as New Caledonia’s “identity symbol”.

    The tribunal also urged the new government to make the necessary changes and to re-circulate the former one-flag version “without delay”.

    Meanwhile, the government is bearing the cost of a fine of 100, 000 French Pacific francs (about US$875) a day, which currently totals over US$43,000 since January 1.

    The “identity symbols”, as defined by the Nouméa Accord, also include a motto (the wording ‘Terre de Parole, Terre de Partage’ — Land of Words, Land of Sharing’ was chosen) and even a national anthem.

    But despite several attempts since 1998, no agreement has yet been reached on a common flag.

    This week, hours after the court ruling, an image is being circulated on social media declaring: “If this flags disturbs you, I’ll help you pack your suitcase” (“Si ce drapeau te dérange, je t’aide à faire tes valises”).

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Canada: Government of Yukon provides update on progress towards new minerals legislation

    Government of Yukon provides update on progress towards new minerals legislation
    zaburke

    The Government of Yukon is making significant progress in co-developing new minerals legislation with First Nations aimed at modernizing the territory’s regulatory framework and ensuring responsible resource development.

    The new legislation will create a balanced approach that safeguards the environment, respects Aboriginal rights and supports a strong, sustainable economy. By improving the regulatory system, the Government of Yukon seeks to provide greater clarity for industry while enhancing environmental protections and meaningful involvement of Yukon First Nations in decision-making processes.

    A Steering Committee, comprising representatives from the Government of Yukon, the Council of Yukon First Nations, Indigenous governments and groups, has been working diligently to advance a recommended legislative framework. Regular meetings have facilitated progress on key elements of the legislation.

    A framework agreement will mark a major milestone in the development of new minerals legislation, ensuring that it reflects the values and interests of all Yukoners. Industry representatives and environmental organizations will continue to be engage; they contribute valuable input and insights to the process.

    As the process advances, the government remains committed to ongoing engagement with stakeholders, including recent discussions at the Roundup Mining and Exploration Conference. The objective is to balance regulatory clarity with the flexibility needed to address project-specific circumstances.

    The Government of Yukon continues to work diligently to position the territory as a leader in responsible and sustainable mineral development. Further updates on the progress of the new legislation will be shared in the coming months. 
     

    MIL OSI Canada News

  • MIL-OSI USA News: Press Briefing by Press Secretary Karoline Leavitt, Deputy Chief of Staff Stephen Miller, National Economic Council Director Kevin Hassett, and National Security Advisor Mike Waltz

    Source: The White House

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    1:05 P.M. EST
     
         MS. LEAVITT:  Hello.  Good afternoon, everybody.  I brought some heavy hitters in here with me today. 
     
    Today marks one month of President Trump’s return to the Oval Office, and there is no denying this administration is off to a historic start.  The President has already signed 73 executive orders.  That is more than double the number signed by Joe Biden and more than quadruple the number signed by Barack Obama over the same period.
     
    These executive orders have ended burdensome regulations; sealed the border; unleashed our domestic energy sector; eliminated divisive DEI from our federal government; stopped the weaponization of government; cut waste, fraud, and abuse; reinstituted “America First” trade and foreign policies; and ultimately restored common sense. 
     
    The President also signed the Laken Riley Act into law, which ensures ICE will detain illegal aliens arrested or charged with theft or violence. 
     
    As of today, the Senate has already confirmed 18 Cabinet-level nominees, which is more than at this point under the Obama administration in 2009 and more than double the pace of the Biden administration in 2021. 
     
    And today, we expect Kash Patel to be confirmed as the next director of the FBI. 
     
    We are proud to announce that the president will host his first official Cabinet meeting here at the White House next Wednesday, February 26th. 
     
    In just four weeks, President Trump has already hosted the leaders of Israel, Japan, Jordan, and India.  And next Monday, the President will host France’s President, Emmanuel Macron, and on Thursday, the UK Prime Minister, Keir Starmer, will visit the White House as well. 
     
    As you all know, over the past month, the President has taken questions from the press — all of you — nearly every single day, sometimes on multiple different occasions in the same day, on any topic any of you wish to talk about. 
     
    President Trump set the tone on this approach immediately when he took more than 12 times the questions in his first few hours in office as Joe Biden did in his entire first week. 
     
    Yesterday, we hosted a local media row here at the White House with television and radio stations from across the country that reached up to 60 million viewers and listeners. 
     
    In our ongoing pursuit of transparency, on this one-month celebration, I am thrilled to bring three of my colleagues and our policy experts here at the White House to further recap this incredible first month of accomplishments in greater detail.
     
    We have Deputy Chief of Staff for Policy and Homeland Security Advisor Stephen Miller; the Director of the National Economic Council, Kevin Hassett; and our National Security Advisor, Mike Waltz. 
     
    I will hand it over to them.  They will deliver brief remarks on the accomplishments of this administration in the first month, and then we will open it up to Q and A.  When we open up the Q and A portion, I do ask, for the sake of efficiency in this room, that you direct your question to the principal you seek an answer from.  And I will call on you in this room.
     
    But first I will let them roll through their remarks.  And first up, I’ll turn it over to Stephen Miller.
     
    MR. MILLER:  Thank you.  It’s great to be back.
     
    And I want to just thank you all for joining today our one-month celebration of the most historic opening to a presidency in American history.  No president comes close to what Donald Trump has achieved over just the last 30 days.
     
    He has packed eight years of transformative action restoring this nation, restoring our laws, restoring fairness, restoring economic opportunity, restoring national security in just one month.  No one in this country has ever seen anything like it. 
     
    And when you look at the consequentiality and the significance and the transformative nature of the actions he’s taking, it truly defies description.  For example, in just one area, this nation has been plagued and crippled by illegal discrimination: diversity, equity, and inclusion policies.  It strangled our economy.  It has undermined public safety.  It has made every aspect of life more difficult, more painful, and less safe. 
     
    He has ended all DEI across the federal government.  He has terminated all federal workers involved in promulgating these unlawful policies.  He has ended diversity, equity, and inclusion in all federal contracting.  He has restored merit as the cornerstone of all federal policy; restored the full, fair, impartial enforcement of our federal civil rights laws for the first time in generations; and he has cracked down on individuals across this government and nonprofits who have engaged in illegal racial discrimination against the American people. 
     
    This includes making clear to every educational institution in this country that ending diversity, equity, and inclusion, ending unlawful race discrimination is a precondition of receiving federal funds. 
     
    He has also saved women’s sports by ending the participation of men in women’s sports.  He has ended radical gender ideology across the entire federal government, and he’s pressured the private sector to also end and combat radical gender ideology.  He’s reestablished the scientific and biological truth that there are only two sexes in this country — male and female — that those are biologically based determinations.  They are not based and can never be based on gender identity. 
     
    That includes rooting out of the Department of Defense all DEI policies, all critical race theory, all gender madness, and once again having a military that is focused solely and exclusively on readiness, preparedness, and lethality.
     
    As I’m sure Kevin will talk about more, of course, he has undertaken a historic cost-cutting effort across the federal government, launching the first-ever Department of Government Efficiency, uncovering corruption on a scale that we never thought imaginable, terminating every single federal worker that we — that we have found to be engaged in the corruption and theft and the waste of taxpayer dollars, and already saving $50 billion in a single year, which over a 10-year period would be $500 billion.  Just think about how vast and enormous that sum is. 
     
    Of course, as you all know, he has renamed the Gulf of Mexico to its correct and proper name: the Gulf of America.  He has renamed Mount Denali into Mount McKinley, part of a historic effort to restore patriotism and national pride all across this land. 
     
    He has ended the weaponization of the federal government, restored the Department of Justice to its true mission of combating threats to this nation and keeping the American people safe. 
     
    He has ended all federal censorship of free speech.  This has been one of the greatest crises that has plagued this nation.  Years and years and years, the federal government violating the First Amendment to take away Americans’ right of free speech — President Trump has ended that.  And he has demanded that all federal workers, all law enforcement cease any effort to intimidate the rights of Americans or to police their speech. 
     
    He has also restored the death penalty at the Department of Justice, including for illegal aliens who commit murder, including for those who murder cops, and including for all of those who threaten Americans with heinous acts of violence.  The death penalty is back.  Law and order is back.  The streets are being made safe once again. 
     
    On the public health front, he has launched the nation’s first-ever commission — the MAHA Commission — Make America Healthy Again, following the historic confirmation of RFK Jr., to finally uncover the true root causes of the public health crisis in this country, the childhood disease epidemic in this country, the spiraling rates of pediatric cancer and devastating childhood sickness. 
     
    He has finally created a situation where the federal heal- — health agencies in this country will be focused on preventing disease, on keeping children from getting sick in the first place, not sentencing them to a lifetime in and out of hospitals, suffering needlessly, when we can find ways to prevent this epidemic of illness. 
     
    Then, of course, on homeland security.  Today, it is officially the law of the land at the conclusion of the congressional notification process that six Mexican cartels and two transnational gangs — Tren de Aragua, or TDA, and MS-13 — so eight organizations in total — are now formally designated as foreign terrorist organizations, which means that every single member of those organizations who operates on U.S. soil is now, as a legal matter, a terrorist, and they will be treated as terrorists. 
     
    This is a sea change in U.S. policy.  And this means the Department of Justice and the Department of Homeland Security, along with the rest of U.S. law enforcement and the Department of Defense, are now operating in a legal reality where these cartels are recognized as terrorists, and there will be a whole-of-government effort to remove these terrorists from our soil and to degrade their ability to threaten or undermine any American security or sovereignty interests.
     
    Border crossings since the day he took office are down 95 percent.  I think it’s almost impossible to even describe the scale and scope of that achievement.  President Trump, within days of taking office, cut border crossings 95 percent. 
     
    And those few who have dared to cross are being either prosecuted or deported.  They’re either facing significant jail time for trafficking, smuggling, harboring, aiding, impeding, or they’re being immediately removed from our soil.  Either way, at the end of the process, they are going home. 
     
    He has reimplemented Remain in Mexico, and he has obtained historic cooperation from foreign countries all around the world in accepting their deportees back. 
     
    And he has used the United States military to fully seal the southern border with a historic deployment of both active duty and National Guard troops, resumed the building of infrastructure.  He has opened up Guantanamo Bay, and he’s using military aircraft to carry out deportations all across this country. 
     
    And ICE is joining with ATF, DEA, and FBI to carry out the largest deportation operation in American history.  The criminals are going home.  The border is sealed shut.  America is safe, sovereign, proud, and free.  We are a nation that everyone in the world understands all across this planet: You do not come here illegally.  You will not get in.  You will go to jail.  You will go home.  You will not succeed. 
     
    This is the biggest and most successful change in any area of law enforcement that this nation has ever seen, and he did it in under one month. 
     
    Thank you.
     
    MR. HASSETT:  Should I go?
     
    MS. LEAVITT:  Yes, yes.
     
    MR. HASSETT:  Well, thank you, Karoline.  Thank you, Stephen. 
     
    You know, one of the things that President Trump cares most about is job creation.  And it was about seven years ago I had the honor of joining you in this room for the first time, and it looks like we’ve created a lot more jobs in the last month.  Look at how many people are here.  I — my estimate is about 180 but — but I didn’t count. 
     
    So, thank you.  It’s really an honor to be back here.  I think that I just want to go over a few things and then hand it off to Mike. 
     
    The first thing is that the President has told us to prioritize fighting inflation, and he had to do that because, as you know, President Biden let inflation get completely out of control.  And he did it with policies that made no sense.  They made no sense. 
     
    You know, a lot of times, you people say to us — our friends, the journalists — you know, “Why are you doing that?”  But — but, you know, I like to think, “Why did they do that?  Why did they spend so much money and then — why did the Fed print so much money so that we had inflation as high as we’ve ever seen since Jimmy Carter?  So, why did they do that?”
     
    So, we’re addressing inflation.  We didn’t have to address it in the first term, because it was always in the 1s, almost always.  But we’re going to get it back there. 
     
    And how are we doing it?  Well, we’re doing it with a plan that President Trump and I and others have talked about in the Oval that involves, like, every level of fighting inflation. 
     
    First, the macroeconomic level.  We’re cutting spending.  We’re cutting spending in negotiations with people on the Hill.  We’re cutting spending with the advice of our IT consultant, Elon Musk.  And then we’re also looking into supply-side things, like restoring Trump’s tax cuts, maybe even expensing new factories so that there is an explosion of supply.  If you have an explosion of supply and a reduction in government demand, then inflation goes way down. 
     
    And then, one of the things that you want to say is “Well, when are you going to see it?”  Well, the first thing that you’ll see when the markets believe that we’re going to get inflation under control is that the 10-year Treasury rate goes down, because that’s how they think about future expected inflation. 
     
    And so, we’re still going to see some memory of Biden’s inflation.  It’s not going to go away in a month.  But the 10-year Treasury before the last Consumer Price Index had dropped about 40 basis points.  Forty basis points because markets were optimistic about our ability to fight inflation. 
     
    Forty basis points is kind of not a fun thing to say.  I — economists talk that way.  I apologize.  But the way to think about it is, for a typical mortgage, if that affects the mortgage rate, then it’s going to save a typical family buying a house about a thousand bucks a year, and that’s just in our first month. 
     
    Okay.  The second thing we’ve done is we’ve had a lot of trade talks.  In fact, I was just meeting a minister from Mexico with Howard Lutnick just a couple of hours ago.  And we’re talking about reciprocal trade, and we’re also talking about the fentanyl crisis. 
     
    And so, reciprocal trade is about our government treating other governments the way they treat us.  We want trade to be fair.  It turns out that Americans have been disadvantaged by foreign governments over and over, and President Trump wants it to stop.  And the fact that struck me as most noticeable, when I started to look at what President Trump was asking us to do, is that last year — last year — we have data — U.S. companies paid $370 billion in taxes to foreign governments — $370 billion.  Last year, foreign multinationals paid us $57 billion in taxes. 
     
    We have one quarter of world GDP.  They have three quarters of world GDP.  And we’re paying $370.  They’re paying $57.  This is not reciprocal.  We’re going to try — or we’re going to fix it. 
     
    The other thing that we’ve done is we’ve had an all-of-the-above energy approach that’s led by Doug Burgum and Chris and a really large team — EPA — and we’ve already made so many actions that are going to affect the price of energy and lower inflation. 
     
    We’ve opened up 625 million acres to energy exploration.  We’ve cut 50 years of red tape that makes it so you can’t have permits.  And we’ve even made it so that when you go home, if you get a new one, then you can take a shower or flush a toilet or read under a light bulb.  We’re doing that too. 
     
    So — so, finally, let’s just think about, like, the facts that we can see right now that we think are awesome.  So, guess what?  Small-business optimism is — has go- — gone up by the most ever since President Trump came in.  ISM, which is the measure of what’s going on in manufacturing, it’s expanding again for the first time in years.  CEO confidence is the highest it’s been in years.  And the reason — the reason people are thinking this is that our policies give people cause for optimism. 
     
    And then I want to reiterate what Stephen Miller said, because it’s so important — and it’s so important for financial markets to start to digest this — that if, say, the Treasury secretary or the — any Cabinet secretary, with Elon Musk, is able to find some savings — say, $100 billion — well, in CBO land, that’s actually, like, about 10 times that or maybe 12 times that over a 10-year window. 
     
    And so, when you’re thinking about the negotiations right now over reconciliation and thinking about, well, $4 trillion, $5 trillion, well, those numbers, in terms of the savings, are going to end up being small because of all the waste that we’re finding. 
     
    And so, we’re incredibly optimistic about the future of inflation and the future of our economy.  And we’re optimistic because we’re making so much progress so far, and we already see it in market prices. 
     
    And, with that, I’ll hand it off to Mike. 
     
    MR. WALTZ:  All right.  Thanks, Kevin. 
     
    Well, good afternoon.  What a month and what a sea change in our — in our foreign policy.  In addition to what we’re doing on the border and restoring American sovereignty, in addition to what we’re doing in our economy and the job creation and the inflation reduction, we are bringing the world back to where it was at the end of President Trump’s first term, which is a world of peace, prosperity, and — and looking forward and getting us out of the chaos that we’ve just seen over the last four years. 
     
    So, over the last month, just to name a few, I had the honor of sitting in the Oval Office as President Trump spoke with President Putin and then immediately spoke with President Zelenskyy, and both of them said only President Trump could bring both sides to the table, and only President Trump could stop the horrific fighting that has been going on now for the better part of four years and that only President Trump could drive the world back to peace.  Both of those leaders said that in back-to-back calls.
     
    And, of course, we just had our historic talks mediated by our — our good friends and partners, Saudi Arabia — we give great thanks to Crown Prince Mohammed bin Salman for hosting — and sat down for the first time in years with the Russians and talked about a path forward with peace.
     
    On top of that and one of the things that led to that was a tremendous co- — confidence-building measure that we had with the release of Marc Fogel.  I’ll remind everyone, the last time that we had an American released from the Russians, either we gave up a deadly spy; pressured our allies to give up a lethal killer; or we released, under the Biden administration, the world’s most notorious arms dealer, Viktor Bout, who, by the way, had one of his main clients for arms the cartels in — in Mexico and Central America. 
     
    We gave up none of that.  This was released as a confidence-building measure, working with our great Middle East Envoy, Steve Witkoff, and our secretary of State as a first step towards opening these talks and then moving forward towards peace. 
     
    On top of that, we’ve secured, just in a month, the return of a dozen — 12 — American hostages from Russia, from Bulgaria, from Venezuela, the Taliban, and Hamas.  Excuse me, that’s from Belarus, not Bulgaria. 
     
    We also had — for the first time in quite some time, we took out a senior leader of ISIS, an international financier and recruiter that the military had been trying to take out for quite some time and — and wasn’t able to do so, frankly, because of a bureaucratic approval process.  President Trump said, “Take him out.”  And that ISIS financier and leader is no longer on this Earth. 
     
    We’ve also taken action to eliminate other terrorist organizations in the Middle East.  We drove — before the President was even in office, he started talking consequences for people that would hold Americans. 
     
    Heretofore, there’s been nothing but upside.  You take an American, you get some better deal.  You take another one, maybe you get a better deal.  No more.  There is now nothing but downside for taking Americans illegally, either as hostages or illegal detainees. 
     
    And when President Trump sent a very clear message across the Middle East, but particularly to Hamas, that there would be all hell to pay, we suddenly saw a breakthrough.  And now we just saw the release of yet another group of hostages.  There have been dozens now, including two Americans that we’ve seen once again reunited with their families. 
     
    As part of the talks with King Abdullah, he offered — and — and I think the entire world has graciously accepted — to take 2,000 sick children, cancer patients, and others out of Gaza.  As a humanitarian — as a humanitarian gesture, 2,000 Gazans will come out of that hellhole that it is, that wasteland that Gaza is right now, with unexploded ordnance, with debris everywhere, with no sewage, with no water.  And — and President Trump has — has put forward a plan to deal with the practical reality that is 1.8 million Gazans now — now truly suffering.
     
    And then, you know, just to bring it back to our own hemisphere, we’ve seen literally, in the last month — after years of national security experts, the generals in charge, and others testifying and ringing the alarm bells about — about the Chinese Communist Party’s presence in our own hemisphere, particularly in the Panama Canal, we’re seeing the leadership of Panama step away from the Belt and Road program, move away from China and back towards the United States, and even enter into talks and — and other negotiations about addressing the ports on either side of the canal. 
     
    And then, finally, last but not least, we’ve had four world leaders in the White House, in the Oval Office.  We’ve had the prime minister of Japan, the prime minister of India, the king of — of Jordan, and, of course, the prime minister of Israel just in the last four weeks.  And next week, we’ll have the Prime Minister of the United Kingdom and we’ll have the president of France, Macron. 
     
    So, President Trump is on what we call Trump warp speed.  We are all — we are all honored to be really serving under — under his leadership and his vision.  And truly, you know, when we all say — and the President himself say — says, he is a president of peace.  He is a president focused on restoring stability.  I think the entire world saw what the world would look like without strong American leadership in the last four years.
     
    And it’s truly been an honor to get us back to where we were and back on track under President Trump’s leadership. 
     
    MS. LEAVITT:  Thank you, Mike. 
     
    MR. WALTZ:  Mm-hmm.
     
    MS. LEAVITT:  Thank you.  Thank you, everybody.  I’m sure you’re very eager to ask questions of these very smart people working very hard on behalf of the president. 
     
    We do have somebody in our new media seat today.  We have John Stoll, who is the head of news at X.  As you all know — you’re all on X — it’s home to hundreds of millions of users, a large contingent of independent journalists and news organizations across geographies and political spectrums.  And at the same time, X remains the go-to platform for many legacy news outlets.  And I know, as I mentioned, many of the reporters in this room use X to attract eyeballs to your work. 
     
    Prior to joining X, John spent two decades in journalism, including several years as an editor at The Wall Street Journal.  We are excited to have him in the briefing room today.
     
    John, we’ll let you kick it off.  And as I said at the top, please direct your question to the individual up here who you’d like an answer from. 
     
    John, why don’t you begin.
     
    Q    All right.  Thank you very much.  I am sitting in for a thriving ecosystem of journalists, independent and — and emerging news organizations who do depend on X for publicity, for a business model.  And so, I look forward to seeing many of them in this seat in months and years to come. 
     
    I also thank you, Karoline, for opening this seat up to new media.  It — it really is a testament not only to your open-mindedness but also to innovation that you’d actually think about, you know, folks that are not traditionally credentialed to be in this room to be in this room and to not only have a question but also to witness — you know, this is at a very important intersection of power and the free press.
     
    And so, just the ability to witness this and — and be part of it, it brings everybody’s game up.  So, thank you for that. 
     
    I think this is for Mike Waltz.  My question is about Ukraine.
     
    MR. WALTZ:  Sure.
     
    Q    For about more than 10 years, I’ve been fascinated, like all — like many, with what’s going on.  I was in Northern Europe working out of the Baltics when Crimea was annexed and was — a lot — a lot of this came on Twitter.  The platform used to be known as Twitter.  Was — a lot of European leaders would — would talk about their disappointment and — and solidarity with Ukraine, but when it came to actually doing something, it felt like they were passing a hot potato and sent it over the Atlantic. 
     
    I wonder how much of what we’re seeing right now out of the administration and President Trump is a call to Europe and the European leaders and allies that we’ve traditionally had to pick up that hot potato and — and start doing something a little bit more concrete to win and preserve the peace in Ukraine. 
     
    The second question I have is — it — it’s related — is there’s been some — a lot of speculation that President Trump and the administration might be manipulated by Pre- — by Vladimir Putin.  I wonder if you can just talk a little bit about the administration’s posture —
     
    MR. WALTZ:  Yeah.
     
    Q    — and your confidence in the competence of this administration to d- — go toe to toe with Vladimir Putin. 
     
    MR. WALTZ:  Well, if there’s an- — I’ll take the l- — second question first.  If there’s anybody in this world that can go toe to toe with Putin, that could go toe to toe with Xi, that could go toe to toe with Kim Jong Un — and we could keep going down the list — it’s Donald J. Trump.  He is the dealmaker in chief.  There is no question that he is the commander in chief. 
     
    And I, for one — and I think all Americans and around the world should have no doubt about his ability to not only handle Putin but to handle the complexity of driving this war to an end. 
     
    And then on your first piece on Europe, I’ll take you back to 2014.  You’re right.  There was a lot of hand-wringing in Europe and not a lot of action.  There was also a lot of hand-wringing here in Washington under the Obama administration and not a lot of action.  They literally threw blankets at the problem. 
     
    And so, I’ll remind everyone that Putin had, you know, some type of conflict, invasion, or issue with their neighbor under President Bush, with Georgia; under President Obama, with Ukraine in 2014; not under President Trump, 45; and again with President Biden in 2022.  The war should have been deterred.  The war should have never happened, and I have no doubt it would not have happened under President Trump and will stop under President — President Trump again. 
     
    But I just want to push back on this notion of our European allies not being consulted as we’ve entered into this process.  I already mentioned the immediate phone call President Trump made to President Zelenskyy.  He has talked to President Macron of France repeatedly last week.  President Macron convened European leaders and then is coming here on Monday.  Prime Minister Starmer is coming next Thursday. 
     
    We’ve also — I’ve talked to every one of my national security — national security advisor counterparts across — across the spectrum in Europe.  I’ve talked to Secretary-General Rutte, the — the leader of NATO, the secretary-general of NATO.  We have repeatedly — oh, by the way, we had half our Cabinet — seven Cabinet officials, including the vice president, at the Munich Security Conference, all engaging, all listening, and all making sure our allies were heard. 
     
    However, we’ve also made it clear for years — decades, even — that it is unacceptable that the United States and the United States taxpayer continues to bear the burden not only of the cost of the war in Ukraine but of the defense of — of Europe.  We fully support our NATO Allies.  We fully support the Article 5 commitment.  But it’s time for our European allies to step up. 
     
    And one of the things that Secretary-General Rutte said on our call was this last couple of weeks have been a real wake-up call.  And I asked him, “What have you been missing the last couple of years?” 
     
    The fact that we are going to enter into a NATO summit this June with a third of our NATO Allies still not meeting the 2 percent minimum, a commitment they made a decade ago — literally a decade ago — with a war on their doorstep — the largest war that they’re all extremely concerned about — but yet it’s “Well, somebody else needs to pay.  We’ve got other domestic priorities.”  It’s unacceptable.  President Trump has made that clear. 
     
    And the minimum needs to be met.  We need to be at 100 percent in — this June at the NATO summit.  And then let’s talk about exceeding it, which what — is what President Trump has been talking about, with 5 percent of GDP. 
     
    Europe needs to step up for their own defense as a partner.  And we can be friends and allies and have those tough conversations. 
     
    MS. LEAVITT:  Great.  Peter.
     
    Q    Thank you, Karoline.  I have a Ukraine one and a DOGE one.  Who can talk DOGE?
     
    MS. LEAVITT:  Stephen, go ahead.
     
    Q    Well, so — so, Stephen, we’re hearing about these DOGE dividend checks that would be 20 percent back to taxpayers, 20 percent to pay down the debt.  Sixty percent is left.  Who gets that?
     
    MR. MILLER:  Well, the way that it works is when you achieve savings, you can either return it to taxpayers, you can return it to our debtors, or it can be cycled into next year’s budget, and then it just lowers the overall baseline for next year.  So, in other words, you can just transfer it into the next fiscal window and then lower the overall spending level.  And that means that you can achieve a permanent savings that way, and that reduces the deficit. 
     
    Q    And when is it that people might see those checks?
     
    MR. MILLER:  Well, this is all going to be worked on through the reconciliation process with Congress that’s going underway right now, as you’ve seen.  The Senate is moving a bill.  The House is moving a bill.  The president has great confidence in both chambers to deliver on his priorities. 
     
    I would just take this opportunity to note that President Trump has made a historic commitment to the working class of this country to fight for a major tax relief and major price relief.  And cutting spending, as DOGE is doing, and cutting taxes is the key to delivering on both of those promises.  And President Trump is resolutely committed to doing both. 
     
    Q    Thank you.  And on Ukraine.  I guess, this is for Mike.
     
    MR. WALTZ:  Sure. 
     
    Q    After the president’s post on Truth Social yesterday, need to know: Who does he think is more responsible for the Russian invasion of Ukraine, Putin or Zelenskyy?
     
    MR. WALTZ:  Well, look, his — his goal, Peter, is to bring this war to an end, period.  And there has been ongoing fighting on both sides.  It is World War I-style trench warfare. 
     
    His frustration with President Zelenskyy is — that you’ve heard — is multifold.  One, there needs to be a deep appreciation for what the American people, what the American taxpayer, what President Trump did in — in his first term, and what we’ve done since.  So, some of the rhetoric coming out of Kyiv, frankly, and — and insults to President Trump were unacceptable.  Number one. 
     
    Number two, our own secretary of Treasury personally made the trip to offer the Ukrainians what is — can only be described as a historic opportunity — that is for America to coinvest with Ukraine in their minerals, in their resources, to truly grow the pie. 
     
    So, case in point, there’s a foundry that processes aluminum in Ukraine.  It’s — it’s been damaged.  It’s not at its current capacity.  If that is restored, it would account for America’s entire imports of aluminum for an entire year — that one foundry.
     
    There are tremendous resources there.  Not only is that long-term security for Ukraine, not only do we help them grow the pie with investments, but, you know, we do have an obligation to the American taxpayer in helping them recoup the hundreds of billions that ha- — that have occurred. 
     
    So, you know, rather than enter — enter into some constructive conversations about what that deal should be going forward, we got a lot of rhetoric in the media that was — that was incredibly unfortunate. 
     
    And I could just tell you, Peter, you know, as a veteran, as somebody who’s been in combat, this war is horrific.  And I think we’ve lost sight of that, of the literally thousands of people that are dying a day, families that are going without the next generation. 
     
    And I find it kind of, you know, frankly, ridiculous.  So many people in Washington that were just demanding, pounding the table for a ceasefire in Gaza are suddenly aghast that the president would demand one and both sides come to the table when it talks to — when it comes to Ukraine, a war that has been arguably far greater in — in scope and scale and far more dangerous in terms of global escalation to U.S. security.
     
    Q    And I do have one for Karoline.
     
    MS. LEAVITT:  Sure.
     
    Q    Does President Trump have a bet with Trudeau about this USA-Canada hockey game tonight?  (Laughter.)  And when there is a big hockey game on, is the president watching for the goals or for the fights?
     
    MS. LEAVITT:  (Laughs.)  Probably both.  I think he’s watching for the United States to win tonight.  I know he talked to the USA hockey team this morning.  He talked to the players after their morning practice, around 10 o’clock.  And I also spoke to some folks from that team after.  They were jubilant over President Trump’s comments to the team.  I believe they’re going to put out a video of that call. 
     
    So, he looks forward to watching the game tonight, and we look forward to the United States beating our soon-to-be 51st state, Canada.  (Laughter.)
     
    Bloomberg, go ahead. 
     
    Q    My question is for Mike Waltz.  Can you give us a readout of Kellogg’s meeting with Zelenskyy that just wrapped up?  And, in particular, Zelenskyy publicly rejected this deal about the rare earth minerals.  Where — where does that stand?
     
    MR. WALTZ:  Well, we’re going to continue to have — he needs to come back to the table, and we’re going to continue to have discussions about where that deal is going. 
     
    Again, we have an obligation to the taxpayer.  I think this is an opportunity.  The president thinks this is an opportunity for Ukraine going forward.  There can be, in my view, nothing better for Ukraine’s future and for their security than — than to have the United States invested in their prosperity long-term.  And then a key piece of this has also been security guarantees. 
     
    Look, the — the reality that we’re talking about here is: Is it in Ukraine’s interest?  Is it in Europe’s interest?  It certainly isn’t in Russia’s interest or in the American people’s interest for this war to grind on forever and ever and ever. 
     
    So, a key part of his conversation was helping President Zelenskyy understand this war needs to come to an end.  This kind of open-ended mantra that we’ve had under the Biden administration, that’s over.  And I think a lot of people are having a hard time accepting that.
     
    And then the other piece is there’s been discussions from Prime Minister Starmer and also President Macron about European-led security guarantees.  We welcome that.  We’ve been asking Europe to step up and secure its own prosperity, safety, and security.  So, we certainly welcome that. 
     
    And we certainly welcome more European assistance.  As I told my counterparts, “Come to the table with more, if — if you want a bigger seat at the table.”  And we’ve been asking for that for quite some time. 
     
    Q    And has Russia pushed for sanctions in your talks with them?  And have you consulted with international partners and allies about potentially rolling back sanctions in these negotiations to end the war?
     
    MR. WALTZ:  Those — the talks with — with our Russian counterparts — both with my counterpart, the national security advisor; Secretary Rubio’s counterpart, the Foreign Minister, Foreign Minister Lavrov — you know, it — it really were — was quite broad, focused on what is the goals for our broader relationship, but very clear that the fighting has to stop to get to any of those brighter goals. 
     
    And as a first step, we’re just going to do some commonsense things, like restore the — the ability of both of our embassies to function. 
     
    And, again, you know, this is — this was common sense.  In — in foreign policy world, they call it “shuttle diplomacy.”  We have to talk to both sides in order to get to both sides to the table, and both sides have said only President Trump could do that. 
     
    MS. LEAVITT:  Diana.
     
    Q    Thank you.  And my question is for Mike Waltz.  (Laughter.)
     
    MR. WALTZ:  All right.
     
    Q    The president has called Zelenskyy a dictator.  Does he view Putin as a dictator? 
     
    And does he want Zelenskyy out of power?  I know he’s called for elections. 
     
    And then, thirdly, the head of the Defense Committee in Ukraine’s parliament just has claimed that the U.S. has stopped selling weapons to Ukraine.  Is that true?
     
    MR. WALTZ:  Well, most of our weapons that have gone to Ukraine have been part of a drawdown authority, where we’ve literally taken them out of our stocks and then, eventually, through appropriations, started buying them again to refill our stocks. 
     
    I’ll, you know, just state that there has been a lag in a lot of that process.  So, many of our stocks, as we look at our operations around the world, are becoming more depleted.  That’s one of the reasons many people have had a lot of concern about: When does this end?  How much is it going to take?  How many lives will be lost?  How much will we be — how much will we spend? 
     
    As a member of Congress, we repeatedly asked the Biden administration those questions, and we never got a satisfactory answer. 
     
    Look, President Trump is obviously very frustrated right now with President Zelenskyy — the fact that — that he hasn’t come to the table, that he hasn’t been willing to take this opportunity that we have offered.  I think he eventually will get to that point, and I hope so very quickly.
     
    But President Trump is — as we made clear to our Russian counterparts, and I want to make clear today — he’s focused on stopping the fighting and moving forward.  And we could argue all day long about what’s happened in the past. 
     
    MS. LEAVITT:  Reagan.
     
    Q    Thanks.  I have a question for Stephen —
     
    (Cross-talk.)
     
    Q    — and a question for Mike.
     
    MS. LEAVITT:  Excuse me, I just called on Reagan.  Reagan, go ahead. 
     
    Q    I have a question for Stephen and a question for Mike. 
     
    MS. LEAVITT:  Sure.
     
    Q    Stephen, I can start with you.  There have been reports —
     
    MR. MILLER:  Thank you.
     
    Q    — that Trump is unhappy with the rate of deportations and he wants them to be higher.  Is the president happy with the rate of deportations, and are there any plans to speed up the process?
     
    MR. MILLER:  Well, first of all, we all appreciate the encouragement from the media to deport as many illegal aliens as humanly possible.  So, thank you. 
     
    And I will promise you that the full might of the Department of Homeland Security, the Department of Justice, the Department of Defense, and every element and instrument of national power will be used to remove, with speed, all criminal illegals from the soil of the United States of America, to enforce final removal orders, and to ensure that this country is for American citizens and those who legally belong in this country.
     
    We inherited an ICE that was completely shuttered.  We inherited a Department of Homeland Security whose sole mission was to resettle illegal aliens within the United States of America. 
     
    In 30 days, the president sealed the border shut, declared the cartels to be terrorist organizations, has increased ICE deportations to levels not seen in decades, and we are shortly on the verge of achieving a pace and speed of deportations this country has never before seen. 
     
    Thank you. 
     
    Q    And Mike.
     
    MR. WALTZ:  Mm-hmm.
     
    Q    There have been reports that there’s some underground opposition to Trump’s pick for Undersecretary of Defense for Policy, Elbridge Colby.  Have you or anyone from the administration been personally lobbying senators to support Elbridge Colby? 
     
    MR. WALTZ:  Look, I’ve worked with Bridge Co- — Colby in the past.  He has the president’s full support to be the Undersecretary of policy, which will be a critical policy arm for Secretary Hegseth going forward that will implement a lot of these policies. 
     
    And — and really, that’s — that’s been the extent of it.  I think there’s been a lot of kind of, you know, breathless — I don’t know — back-and-forth in the — in the press, but we’re full speed ahead to get the president’s team in place so we can implement his America First policy. 
     
    MS. LEAVITT:  Thank you.  Mike has spoken pretty extensively.  Does anybody have questions for Stephen or for Mr. Hassett?
     
    Q    I do.
     
    MS. LEAVITT:  Nobody wants to talk about the economy?  (Laughter.)
     
    (Cross-talk.)
     
    MS. LEAVITT:  Sure. 
     
    Q    IRS.
     
    MS. LEAVITT:  IRS.  Okay.  Go ahead.
     
    Q    And this would be for either one of you.  So, we have reported, several other outlets have reported that about 3,500 people are due to be — lose their jobs at the IRS by the end of the week.  If the goal of these spending cuts across the federal government has been to reduce the debt, why impose some of the deepest cuts we’ve seen so far at the agency responsible for raising revenue for the federal government?
     
    MR. HASSETT:  Well, I think our objective is to make sure that the employees that we pay are being productive and effective.  And there are many, many — more than 100,000 people working to collect taxes, and not all of them are fully occupied.  And the Treasury secretary is studying the matter and feels like 3,500 is a small number and probably can get bigger, especially as we improve the IT at the IRS.
     
    And so — so, I think that it’s absolutely something that is on the table for good reasons.  And the point is that — don’t just talk about the IRS.  Talk about all of government, that there are so many places — I live in D.C.; you maybe live in D.C. — where you never — there — nobody — nobody is going into the buildings.  People aren’t commuting because nobody is doing their job.  We look back and we see that there are all these people doing two jobs while they’re getting a government payroll — on the payroll. 
     
    So, the point is, we’re fixing that, and the IRS is a small part of that picture. 
     
    Q    So, you’re saying that everybody who’s being let go was doing a bad job?
    MR. HASSETT:  I’m saying that we’re studying every agency and deciding who to let go and why, and we’re doing so very rationally with a lot of support from analysis. 
     
    Q    Because we’re being told by a lot of people who have been let go at other agencies that they were told they were being dismissed because of poor performance, when, in some cases, they haven’t even had a performance review yet because they’ve only been on the job a couple of months. 
     
    MR. HASSETT:  Yeah, I’ve never seen a person who was laid off for poor performance say that they were performing poorly.  (Laughter.)  Okay?
    Q    Karoline.
     
    MS. LEAVITT:  Good point.  Sure, Kaitlan.
     
    Q    I have a question.  I’ll start with you, Kevin Hassett.  Thank you for being here.  And then I’ve got a question for Mr. Waltz.
     
    On these potential checks that you might send out from DOGE, is there a concern, as you’re thinking through this, that they could be inflationary?
     
    MR. HASSETT:  Oh, absolutely not, because imagine if we don’t spend government money and we give it back to people, then the — you know, if they spend it all, then you’re even.  But they’re probably going to save a lot of it, in which case, you’re reducing inflation. 
     
    Q    Okay.  So, you’re not —
     
    MR. HASSETT:  And also, when the government spends a lot, that’s what creates inflation.  We learned that from Joe Biden.  And so, if we reduce government spending, then that’s — you know, reduces inflation.  And if you give people money, then they’re going to save a bunch of it.  And — and when they save it, then that also reduces demand and reduces inflation. 
     
    Q    Okay.  So, you’re not worried about it. 
     
    MR. HASSETT:  No, I’m not.
     
    Q    And, Mr. Waltz, to follow up on Peter’s question, you wrote in an op-ed in the fall of 2023 that, quote, “Putin is to blame, certainly, like al Qaeda was to blame for 9/11.”
     
    MR. WALTZ:  Mm-hmm.
     
    Q    Do you still feel that way now, or do you share the president’s assessment, as he says Ukraine is to blame for the start of this war?
     
    MR. WALTZ:  Well, it shouldn’t surprise you that I share the president’s assessment on all kinds of issues.  What I wrote as a Member of Congress is — was as a former Member of Congress. 
     
    Look, what I share the president’s assessment on is that the war has to end.  And what comes with that?  What comes with that should be, at some point, elections.  What comes with that should be peace.  What comes with that is prosperity that we’ve just offered in this natural resources and economic partnership arrangement: an end to the killing and European security and security for the world.  The President is not only determined to do that in Europe, he’s determined to do it in the Middle East. 
     
    And just a few months ago, we had an administration that had tried for 15 months, week after week, sitting with you here, and couldn’t get us to a ceasefire, couldn’t get our hostages out.  Now we’re at that point.  We’re back to the maximum pressure on Iran.
     
    And we will — we have just begun, and we will drive towards a ceasefire and all of those other steps.  I’m not going to pre-negotiate or get ahead of the sequencing of all of that.  It’s a very delicate situation. 
     
    But this is a president of peace.  And who here would argue against peace?
     
    Q    Okay.  So, you do share that assessment. 
     
    And can I follow up.  In 2017 —
     
    MS. LEAVITT:  No.  Go ahead, Jordan.
     
    Q    — then-President Trump —
     
    MS. LEAVITT:  Go ahead, Jordan. 
     
    Q    Can I just follow up really quickly?
     
    Q    Thank you.  So —
     
    MS. LEAVITT:  You just had two questions, Kaitlan.
     
    Q    May I — can I just —
     
    MS. LEAVITT:  Jordan, go ahead. 
     
    Q    Mr. — Mr. Hassett —
     
    MS. LEAVITT:  Thank you.
     
    Q    I have an important follow-up for Mike Waltz.
     
    MS. LEAVITT:  Jordan, go ahead.  Go ahead.
     
    Q    So, Mr. Hassett, you were speaking about tariff revenue, and you also addressed a question about the R- — IRS.  President Trump has spoken about replacing income tax with tariff revenue, especially with all this waste, fraud, and abuse that we’re seeing cut.  Is that a possibility?
     
    MR. HASSETT:  Absolutely.  And, in fact, if you think about the China tariff revenue that we’re estimating is coming in from the 10 percent that we just added, plus the de minimis thing, that it’s between $500 billion and a trillion dollars over 10 years, is our estimate.  And that’s something that is outside of the reductions that markets are seeing through the negotiations up on the Hill.
     
    And so, we expect that the tariff revenue is actually going to make it much easier for Republicans to pass a bill, and that was the President’s plan all along. 
     
    Thank you.
     
    Q    And I — I have a question for Stephen Miller about DOGE.  So, you — you spoke about DOGE.  You said roughly $50 billion is set to be cut in a year of waste, fraud, and abuse by unelected bureaucrats.  We’re hearing this ironic narrative from the President’s critics and the left-wing media that Elon Musk is an unelected bureaucrat, and he’s doing all this terrible stuff.  Isn’t one of DOGE’s objectives to get — get rid of the federal bureaucracy, the — the deep state?  And also, who was running the White House when Joe Biden was in office —
     
    MR. MILLER:  (Laughs.)
     
    Q    — because I don’t know a single person who believes it was Joe Biden? 
     
    MR. MILLER:  Yes.  You’re — you’re tempting me to say — (laughs) — some very harsh things about some of our media friends.  The — yes, it is true that many of the people in this room, for four years, failed to cover the fact that Joe Biden was mentally incompetent and was not running the country. 
     
    It is also true that many people in this room who have used this talking point that Elon is not elected fail to understand how government works.  So, I’m glad for the opportunity for a brief civics lesson. 
     
    A president is elected by the whole American people.  He’s the only official in the entire government that is elected by the entire nation.  Right?  Judges are appointed.  Members of Congress are elected at the district or state level.  Just one man. 
     
    And the Constitution, Article Two, has a clause, known as the vesting clause, and it says, “The executive power shall be vested in a president,” singular.  The whole will of democracy is imbued into the elected president.  That president then appoints staff to then impose that democratic will onto the government. 
     
    The threat to democracy — indeed, the existential threat to democracy — is the unelected bureaucracy of lifetime, tenured civil servants who believe they answer to no one, who believe they can do whatever they want without consequence, who believe they can set their own agenda no matter what Americans vote for. 
     
    So, Americans vote for radical FBI reform, and FBI agents say they don’t want to change.  Or Americans vote for radical reform in our energy policies, but EPA bureaucrats say they don’t want to change.  Or Americans vote to end DEI — racist DEI policies, and lawyers in the Department of Justice say they don’t want to change. 
     
    What President Trump is doing is he is removing federal bureaucrats who are defying democracy by failing to implement his lawful orders, which are the will of the whole American people. 
     
    Thank you. 
     
    Q    Thanks, Stephen.  Can I follow up?
     
    Q    Karoline.
     
    MS. LEAVITT:  Thank you very much, everybody.  I’m looking at the clock.  We’ve almost had an hour of time. 
     
    (Cross-talk.)

    LEAVITT:  I know a couple of these individuals have a meeting to get to at 2:00 p.m.  So, you’re welcome to follow up with my team for further questions.  We’re going to let these guys get back to running the United States government.
     
    And we will see you all later.  President Trump will be speaking at 3 o’clock at the Black History Month reception.
     
    So, thank you.  It’s good to see you.  We’ll see you in a bit.  Thanks.
     
    Q    Are you going to the Black History Month reception, Mr. Miller?
     
    Q    Stephen, on the fraud.  Should we expect indictments?
     
    Q    What is your reaction to Mitch McConnell’s retirement?
     
    Q    Are there indictments coming for all the fraud we’ve found?
     
         MR. MILLER:  I’d love to follow up with you.  Just set up a time with Karoline.
     
         Q    Okay.  Thank you. 
     
    END                   1:56 P.M. EST

    MIL OSI USA News

  • MIL-OSI Australia: (WIP) Big batteries in 2025: the market evolution continues

    Source: Allens Insights

    Another big year for BESS 12 min read

    Utility-scale batteries reached new heights in 2024, achieving several industry firsts. Milestones include the first project-financed virtual offtake agreement and long-term energy service agreement (LTESA), coupled with inventive approaches to revenue stack structuring. As investor interest intensifies, the future of battery storage looks promising.

    This latest Insight on the Australian big battery market delves into the recent trends, the potential opportunities and hurdles for this rapidly evolving industry.

    Key takeaways

    • Project financing of battery energy storage system (BESS) projects is on the rise, with an increasingly sophisticated market, a widening pool of sponsors and diverse range of investment structures.
    • Virtual offtake agreements are dominating the offtake market, giving developers greater flexibility in their revenue stack and opportunities for equity upside through market arbitrage.
    • Interest in the Capacity Investment Scheme and LTESAs is increasing and contributing to projects reaching financial close.
    • Equity investors continue to be attracted to standalone and co-located BESS projects, as well as investment in the hardware and software of a battery.

    What we are seeing in the market

    A growing number of battery projects achieved financial close across the past year and project finance has continued to be the dominant approach. We have seen significant greenfield and operational battery projects financed on a standalone basis and as part of hybrid projects, as well as portfolio-based financings. 

    Key examples of this trend are the renewables portfolio financings for Global Power Generation, FRV and Neoen, all of which included battery projects as part of the technology mix. Akaysha Energy’s standalone financing of its Orana Battery Energy Storage System marked a financing for the largest four-hour BESS in Australia’s National Energy Market (NEM), and one of the largest in the world. 

    The continued support in the project finance market for battery storage projects has been driven by a range of factors, including:

    • a widening pool of sponsors—and, in some cases, extremely strong sponsors—who are investing in the technology;
    • a diverse range of investment structures and rationales, which have seen developers and sponsors raise debt financing for batteries on a standalone and portfolio basis, or as part of co-located or hybrid projects. In some cases, this has been motivated by a business pivot or expansion in response to an increasing need to couple projects with intermittent generation sources with a firming energy source or, more generally, net zero and decarbonisation objectives; and
    • increasing sophistication and experience of developers, contractors and other stakeholders in relation to procurement and contracting strategy, trading strategy, management of interface and gap risk in the context of split contracting, and innovation in revenue structures.

    These trends have been accompanied by—and, in some ways, conducive to—an expanding range of financiers (including mainstream commercial banks, government lenders and other non-bank lenders) participating in financings for battery projects; a greater understanding from lenders of technology and degradation risk; and a greater market acceptance of split contracting structures and non-traditional revenue structures as bankable.

    Throughout 2024 we observed a marked increase in the development and adoption of virtual offtake agreements as a preferred offtake structure. Notable examples are Neoen’s Western Downs BESS and Victorian Big Battery, and, as mentioned earlier, Akaysha’s Orana BESS. 

    A virtual offtake agreement decouples the financial offtake from the physical project. The project company may therefore choose not to follow the instructions of the offtaker and instead operate the BESS according to its own internal trading strategy, but it must still settle the financial swap on pre-agreed terms, regardless of battery capacity and how much the battery is charged or discharged. 

    From the project company’s perspective, unlike a traditional physical toll, it retains control of the physical battery. This increases the opportunities for equity upside through trading arbitrage. The structure also facilitates greater flexibility for a single project to procure offtake agreements with multiple offtakers. It may also be compatible with hybrid or co-located projects in need of multiple offtakers for different components of the project.

    Virtual offtakes are not, however, for everyone. Both the owner and the offtaker need sophisticated trading teams to allow them to make the most of the virtual arrangements and to reduce the risk of making losses. Similarly, developers who want to sell out of a project prior to financial close may want to consider whether a virtual offtake agreement could limit the potential buyer pool to those that have the technical capability to trade the asset.

    In considering this type of structure from a financing perspective, lenders will be focused on mitigating the potential downside exposure in circumstances where physical trading by the project company underperforms against the virtual nominations, eroding actual base case revenue against revenue assumptions against which debt is sized.  

    Providing lenders with appropriate oversight and protections (including, if required, agreed trading protocols), while providing sufficient room for equity to seek upside opportunities, will be the key to building broader market acceptance of the bankability of non-traditional revenue structures such as virtual offtake agreements.

    Last year saw the Federal Government launch the first five tenders in its Capacity Investment Scheme, which wrapped in a tender for the NSW Government’s LTESAs.

    Each tender round has been oversubscribed, indicating a strong appetite from project developers to secure a government underwriting contract such as a Capacity Investment Scheme Agreement (CISA) or an LTESA

    While these underwriting contracts have typically been viewed by project financiers as welcome enhancements, they have traditionally been seen as a ‘nice-to-have’ feature, with the primary focus of lenders being on whether the project has the benefit of a traditional tolling or offtake agreement. At most, we saw sponsors and borrowers proposing to recognise CISAs and LTESAs acting as a floor against any potential market risk (either due to the residual life of the BESS past the offtake tenor or for partially contracted assets). 

    More recently, we are seeing lenders develop a greater understanding of how such agreements can underpin forecast project cashflows in a way that enables higher weighting to be placed on them as a certain and bankable revenue line in the base case financial model. This approach is often supported by tailored protections that are agreed in the debt documents, such as:

    • undertakings around how the project activates and manages its rights to receive support payments;
    • information undertakings, to provide lenders with appropriate visibility over the operation of the underwriting agreement during the facility term; and
    • cash reserving requirements, to facilitate the project maximising the benefit of underwriting agreements, while providing for a buffer should there be a need to meet any payment obligations back to the counterparty (eg reconciliation payments or rebates).

    As more government underwriting agreements are awarded under the LTESA and CISA schemes, there will be an increasing number of projects in the market where such agreements are a feature of the revenue profile. We expect that market acceptance of this approach will continue to broaden over time.

    Split contracting has established itself as the market standard for BESS projects, with sponsors and financiers becoming significantly more comfortable with managing and banking the interface risks between battery supply and balance of plant (BOP) scope.

    Commissioning, handover, defects, security, liability caps and liquidated damages coverage continue to be key areas of focus in negotiations, gaps analysis and bankability assessments. However, the issues, and the related mitigation strategies and contingencies, are now well understood.

    As the BESS split contracting structure has matured, we have also begun to see sponsors with a portfolio of upcoming BESS and other renewables projects seek to partner informally with preferred battery suppliers and/or BOP contractors across that pipeline—the goal being to expedite procurement timeframes, secure production slots and standardise terms across their portfolio.

    With BESS projects increasingly being co-developed with related solar/wind projects (either greenfield or expansions), we also expect to see an increase in a common BOP contractor delivering both the battery and solar/wind BOP scope. At this stage, the BOP scope usually remains ringfenced between assets (eg there is a BESS BOP contract and a solar BOP contract). However, we expect to see sponsors push towards a single hybrid project BOP contract covering both assets, to seek to streamline contracting terms and construction programs on hybrid projects.

    In order to ensure that the structure is bankable, project financiers require a rigorous gaps analysis process underpinning the contract negotiations, along with confidence in the capability and experience of the contractors themselves. The need for a robust gaps analysis does mean more substantial engagement with financiers, and sponsors and developers have had to factor this into the overall transaction timetable. However, the continued rise in standard terms contracts from certain contractors in the market may facilitate efficiencies in the due diligence process, especially on portfolio-based financings.

    Investors continue to be attracted to BESS assets. Unsurprisingly, the reasons for their increasing investment appeal are similar to why we are seeing more and more BESS projects reach financial close.

    These factors enable BESS owners to diversify and maximise revenue output from their renewable energy portfolios. Coupled with favourable investment characteristics for BESS assets, such as lower capex costs and shorter development timelines (particularly when compared with other renewable asset types), we expect to see investment appetite for BESS assets continue to grow.

    In the Australian M&A market, this investor appetite has manifested primarily in the form of co-location ‘add-ons’—where vendors looking to sell a solar or wind project have added a BESS development opportunity to the project. If the BESS can be developed on the project’s existing land footprint, the ‘add-on’ process is relatively simple (other than for the connection process, which continues to cause headaches for developers), and the project up for sale can be rebranded as a co-located wind/solar and BESS project, unlocking for the buyer the various new revenue streams. For the vendor, those additional revenue streams mean a higher purchase price.

    What’s on the horizon

    Recognition of sub-investment grade offtakers?

    The offtaker’s credit quality will continue to be a focus for lenders when assessing BESS projects. However, as a greater range of offtakers enter the market, we can expect more frequent proposals for financiers to consider counterparties that may not have the credit ratings that would typically be required for a bankable project.

    We are seeing this area incrementally develop. This is particularly so in renewables portfolio financings, where certain sub-investment grade offtakers may be recognised and given greater weighting (and, in some cases, equivalent to an investment grade offtaker) as part of debt sizing cashflows, subject to appropriate percentage caps and other criteria being met.

    Opportunities for fully merchant BESS projects

    A further example of the evolving market for BESS financings may be found in the recent Amp Energy project financing of a fully merchant BESS project by commercial bank lenders and Export Development Canada. While we have certainly seen project financings for BESS projects with merchant exposure, those projects have typically included at least some contracted revenue component (whether through a tolling agreement, virtual power purchase agreement, LTESA or revenue risk-sharing agreement). 

    This makes the Amp transaction an interesting market development. Depending on the project and the sponsor, the debt model on the Amp transaction may not be feasible for all sponsors and developers, given that a fully merchant BESS compared with a contracted BESS would necessarily mean more conservative debt sizing, at least in the short term. However, for certain sponsors with strong equity backing, where a high percentage of equity is available to be contributed to individual projects, and where there are challenges or other commercial reasons for not procuring an offtake, a fully merchant-based project financing may still be attractive. 

    Whether this means we will see a growing number of merchant BESS project financings is unclear. The Australian Energy Market Operator (AEMO) forecasts energy storage capacity in the NEM will increase from approximately 2GW at the end of 2024 to nearly 7GW by the end of 2025.1 As more BESS projects come online over time, there may be fewer arbitrage and other similar revenue opportunities. 

    At least in the short term, we expect this may lead to certain sponsors and developers more closely exploring opportunities to raise debt against BESS projects that are fully merchant or that have substantial merchant exposure.

    Investment in BESS platforms and core components

    A growing trend is the investment in BESS-specific investment platforms. While only a limited number have come to market in Australia so far (including the recent ZEBRE BESS platform announced by ZEN Energy and HDRE), we have worked with a number of investors who are looking at opportunities in this space. Investors are drawn to the benefits of BESS projects described above and the potential to accelerate the growth of those benefits when they are aggregated on a portfolio basis.

    We have also seen increased investment interest in core BESS components, including:

    • the hardware—as rival technologies, focused on cost efficiency and safety, are emerging to challenge lithium-based batteries; and
    • the software—focusing in particular on storage and discharge optimisation.

    While the current focus from investors in these core BESS components appears to be on systems designed for the residential and commercial and industrial markets, the ambition for a number of these technologies is to scale up to the utility-scale BESS market.

    Commencement of the GO Scheme

    The Guarantee of Origin Scheme (the GO Scheme) is set to commence in 2025, bringing with it new tradeable certificates in the form of Renewable Energy Guarantee of Origin (REGO) certificates. Unlike large-scale generation certificates, REGOs will be able to be created by energy storage systems (such as batteries) where there is a ‘direct supply relationship’ with an eligible renewable energy facility.

    In addition, REGOs will be time-stamped, meaning they will record the hour of the day in which they were generated. This will allow temporal matching of electricity generation and consumption, and will likely drive a price differentiation between eg REGO certificates generated at 1pm when there is excess solar generation and 1am when renewable energy supply is scarce.

    The introduction of REGO certificates presents an interesting opportunity, and a potential new revenue source, for BESS projects.

    More information on the GO Scheme can be found in our previous Insight.

    Revenue implications from AEMO’s market interventions

    Under the National Electricity Rules, AEMO has powers to issue mandatory ‘directions’ to registered participants in the NEM in relation to the operation of their facilities. This is not uncommon, and is primarily used by the market operator to manage periods of volatility in the market and maintain the reliability standard. Participants are subsequently reimbursed for their compliance via a well-established compensation framework administered by AEMO.

    AEMO has indicated that it intends to use its directions power on battery operators to address the increasingly commonplace minimum system load issues— eg by directing an operator to fully discharge batteries early in the morning and to hold the batteries at minimum charge during the morning, with the direction lifted in the early afternoon.

    However, there are growing concerns that this directions compensation model is not fit for purpose for standalone batteries and other energy storage technologies. The financial model for a standalone BESS is particularly reliant on taking advantage of exactly these periods of financial volatility in the market, and AEMO’s directions compensation framework may not be appropriate in providing adequate financial redress for the opportunity cost that is lost by virtue of being required to comply with an AEMO direction.

    Following the AEMC’s ‘Review into electricity compensation frameworks’, the final report for which was published in December 2024 and can be found here, we expect there to be continued discussions on this issue, to ensure that BESS operators are fairly compensated for AEMO’s market interventions.

    Vanadium flow as an emerging alternative to lithium-ion?

    As the BESS market expands, we expect to see competing technologies emerge as alternatives to lithium-ion batteries. The WA Government recently announced $150 million of funding to develop a 50MW / 500MWh vanadium flow battery (VFB) in Kalgoorlie, which would be Australia’s largest VFB. While VFBs have been mooted for a number of years as a potential utility-scale alternative to lithium-ion batteries, the first (and largest) ‘commercial’ VFB in Australia (a 2MW / 8MWh battery) was only commissioned in mid-2023, as part of the Spencer Energy Project.

    The key roadblocks to the widespread adoption of utility-scale VFBs seem to be higher upfront costs compared with lithium-ion batteries (vanadium is heavily used in steel refining, which creates price and supply chain volatility), and lower roundtrip efficiency of around 70–85% (compared with 90–95% for lithium-ion batteries).

    Despite this, VFBs seemingly provide a number of commercial benefits compared with lithium-ion batteries. In particular, VFBs offer longer storage duration (between 8–12 hours), and the theoretical ability to discharge completely and for an unlimited number of times without significant degradation (providing a much longer and consistent asset life). Further, VFBs are said to be safer (and fire resistant), and storage capacity can be easily increased by adding more electrolyte. At scale and over time, these benefits could help drive a significantly lower LCOE. The WA Government’s funding may be the catalyst to cut upfront costs and kickstart VFBs as a leading alternative to lithium-ion batteries.

    The continuing evolution

    As we look ahead, it is clear that 2025 promises to be another exciting year for the BESS sector. We expect to see more diverse, and growing, opportunities for battery projects, including across construction contracting, revenue structures, project and portfolio-based financing, and M&A. 

    If you would like to hear more about what we’re seeing in the market, please contact any of the team members below.

    MIL OSI News

  • MIL-OSI China: China-South Africa Economic and Trade Forum, China Int’l Supply Chain Expo roadshow held in Johannesburg

    Source: People’s Republic of China – State Council News

    China-South Africa Economic and Trade Forum, China Int’l Supply Chain Expo roadshow held in Johannesburg

    JOHANNESBURG, Feb. 20 — The China-South Africa Economic and Trade Forum and the third China International Supply Chain Expo Promotion Conference were held in Johannesburg on Thursday.

    The event, held by the China Council for the Promotion of International Trade (CCPIT), was attended by over 200 people, including Minister at the Chinese Embassy in South Africa Li Zhigang, South Africa’s Gauteng Member of the Executive Council Jacob Mamabolo, and representatives from business associations and enterprises of both countries.

    In his opening speech, Ren Hongbin, chairman of the CCPIT, said the council has long been committed to promoting economic and trade cooperation between China and South Africa.

    He expressed willingness to work with the South African side to implement the important consensus reached by the leaders of both countries, promote high-quality Belt and Road cooperation, and strengthen bilateral economic and trade cooperation.

    Ren extended a sincere welcome to the South African business community to participate in the third China International Supply Chain Expo to deepen bilateral cooperation in industrial and supply chains.

    Representatives from the South African political and business sectors underscored the huge potential of economic and trade cooperation between the two countries, pledging to actively participate in the upcoming supply chain expo and deepen ties with China in digital infrastructure construction, green economy, inclusive finance, digital technology, and other fields for win-win outcomes.

    The third China International Supply Chain Expo will be held in Beijing from July 16 to 20. As the world’s first national-level exhibition focusing on supply chains, the expo has contributed to building more secure, stable, open, and inclusive global industrial and supply chains.

    MIL OSI China News

  • MIL-OSI China: 200 fraud suspects repatriated from Myanmar to China

    Source: China State Council Information Office 2

    A group of 200 Chinese citizens suspected of involvement in fraud returned to China under the escort of Chinese police on Thursday after being repatriated from Myawaddy in Myanmar. [Photo/Xinhua]
    A group of 200 Chinese citizens suspected of involvement in fraud returned to China under the escort of Chinese police on Thursday after being repatriated from Myawaddy in Myanmar.
    The suspects were first sent to Thailand’s Mae Sot, which shares a border with Myawaddy, on Thursday, before being flown back to China on several chartered flights. They arrived at an airport in Nanjing, the capital of eastern Jiangsu Province.
    The 200 Chinese citizens are the first group of telecom fraud suspects repatriated from Myanmar to China, according to the Ministry of Public Security (MPS).
    It added that more than 800 other Chinese fraud suspects are expected to be repatriated in the coming period.
    The repatriation of these suspects marks a significant achievement of law enforcement cooperation between China, Myanmar and Thailand against telecom fraud, the ministry said.
    According to the ministry, law enforcement authorities from the three countries recently launched a joint operation against telecom fraud in Myawaddy.
    In coordination with this effort, Thailand has cut off electricity, internet and fuel supplies to Myawaddy, and strengthened patrols to prevent illegal border crossings by individuals involved in fraud.
    Myanmar has deployed forces to raid telecom fraud compounds in Myawaddy, arrested fraud suspects, and rescued Chinese nationals trapped in scam operations.
    An official with the ministry said the three countries would institutionalize joint operations to combat telecom fraud and other transnational crimes on a regular basis. The ministry also vowed to continue to dismantle telecom fraud compounds and effectively safeguard the lives and property of Chinese citizens.
    Over recent years, Chinese authorities have made coordinated efforts to fight these rampant crimes.
    Last month, law enforcement authorities of China, Myanmar and Thailand reached a consensus to further strengthen trilateral law enforcement cooperation, establish a joint anti-crime mechanism, and jointly tackling wire and cyber fraud, human trafficking and other cross-border crimes.
    “Fighting online gambling and telecom fraud is a must choice to safeguard the common interests of China and other regional countries, and is what people of all countries want,” said Chinese foreign ministry spokesperson Guo Jiakun at a daily news briefing on Thursday.
    Resolutely cracking down on crimes of online gambling and telecom fraud also demonstrates the countries’ commitment to the people-centered development philosophy, said Guo.
    Earlier this month, a Chinese court in Zhejiang Province tried 23 defendants including key members of several major telecom fraud groups based in northern Myanmar. They were charged with 11 counts of criminal offences including fraud, intentional homicide, intentional injury, illegal detention, operating casinos, drug trafficking, and organizing prostitution.
    A prior official statement emphasized that the handling of the case reflects China’s dedication to protecting the legitimate rights and interests of the nation and its citizens.
    According to the Supreme People’s Procuratorate, between January and November 2024, China’s procuratorial authorities nationwide charged over 67,000 individuals with telecom and online fraud, up 58.5 percent year-on-year.
    Since the launch of a special campaign in July 2023, police have apprehended over 53,000 Chinese suspects involved in telecom and internet fraud operating from northern Myanmar.
    In an exclusive interview with Xinhua, Benedikt Hofmann, acting regional representative of the United Nations Office on Drugs and Crime (UNODC) for Southeast Asia and the Pacific, noted that telecom fraud has expanded rapidly in terms of the number of victims, geographical reach, and financial losses. The UNODC estimates that annual economic losses from such scams in East and Southeast Asia range between 20 billion and 40 billion U.S. dollars.
    Noting the recent cooperation between China and members of the Association of Southeast Asian Nations (ASEAN), including Thailand and Myanmar, Hofmann said this has created “a significant sense of momentum” for international efforts to tackle the issue.
    China has provided crucial support to other countries in combating both drug-related crimes and telecom fraud schemes, Hofmann said, suggesting that China’s approach to tackling telecom fraud, including active prevention measures, could provide invaluable experience for other countries. 

    MIL OSI China News

  • MIL-OSI: Hundreds of Customers LLC Launches Habanero Social Platform, Revolutionizing AI-Powered Google Business Profile Management

    Source: GlobeNewswire (MIL-OSI)

    OVERLAND PARK, Kan., Feb. 20, 2025 (GLOBE NEWSWIRE) — Hundreds of Customers LLC is excited to announce the launch of HabaneroSocial.com, a state-of-the-art platform designed to transform the management of Google Business Profiles (GBP). Powered by artificial intelligence (AI) and the innovative AI assistant “Samwise,” Habanero Social offers businesses an automated solution to optimize their GBP, improve local SEO, and streamline reputation management—allowing them to focus on growth while boosting their online presence.

    Habanero Social AI-Driven Google Business Profile Automation Platform from Hundreds of Customers LLC

    In today’s digital-first world, businesses must maintain an optimized Google Business Profile to stay competitive. Traditional methods of managing a GBP can be time-consuming and inefficient. Habanero Social solves this problem by automating crucial tasks like content publishing, review management, and local SEO optimization, using Samwise to keep businesses ahead of the competition.

    In addition to Habanero Social, Hundreds of Customers LLC also offers Rank With News, a guaranteed SEO service designed to improve website rankings through strategic media placements. By combining Rank With News with Habanero Social, businesses now have a complete, integrated solution to enhance both their local search visibility and global online authority.

    Key Features of the Habanero Social Platform:

    • Automated Google Business Profile Optimization: Samwise, the platform’s AI assistant, updates and optimizes business descriptions, services, and attributes for better search engine visibility and local rankings.
    • AI-Driven Reputation Management: Automate review requests, responses, and reputation monitoring to maintain a strong, professional online presence.
    • Content Automation: Schedule and automate posts, images, and videos to keep your Google Business Profile fresh and engaging, without manual effort.
    • Enhanced Local SEO: Samwise ensures your Google Business Profile is optimized for local search terms, geotagging images and videos for maximum visibility.
    • Seamless Integration: Integrate with platforms like Zapier and CompanyCam to automate review requests, image management, and more.

    “Habanero Social is the perfect solution for businesses that want to improve their Google Business Profile and boost their local SEO without the hassle,” said Justin West, founder of Hundreds of Customers LLC. “With the added power of our Rank With News SEO service, businesses can not only dominate local search results but also enhance their brand authority through guaranteed media placements.”

    “As a business owner, you understand the importance of being visible to potential customers on platforms like Google My Business and Google Maps. With the right SEO strategy in place, your SEO efforts can help your business stand out, but managing everything manually can be overwhelming. Fortunately, using advanced SEO tools like Habanero Social allows you to automate business listings, optimize Google My Business profiles, and stay on top of important business updates—all while reducing repetitive tasks that can drain your time. Whether you’re managing multi-location businesses or working to improve customer satisfaction, our platform provides actionable insights to enhance SEO performance and boost your online visibility.

    “By automating social media posts and gathering positive reviews,” West continued, “you can improve your online reputation and drive organic traffic to your site. The platform offers real-time rank tracking, allowing you to monitor your SEO rankings and search performance as it evolves. From keyword optimization to content writers creating SEO- optimized content, you’ll gain valuable insights into your keyword rankings and see improvements in organic search results. Stay ahead of the curve with real-time updates on your social media platforms and search engine optimization, all while tracking your organic traffic and ensuring your customer interactions are optimized for success.”

    The Habanero Social platform offers businesses a comprehensive understanding of their Google Business Profile and optimizes it through AI-driven optimizations. By automating the post creation process and providing AI-generated Google Business posts, businesses can ensure relevant, high-quality content is consistently published, addressing content gaps that may hinder their visibility. The AI-powered platform streamlines data-heavy, repetitive tasks, allowing businesses to focus on growth while AI-driven summaries and data-driven insights guide their SEO efforts. 1-click publishing enables quick and easy updates, ensuring regular updates to the Google Business Profile, even for businesses with a physical location. Additionally, businesses can use this automation tool to address SEO obstacles, such as responding to negative reviews and consistently publishing high-quality content across their profiles, all without needing an SEO agency.

    With the growing importance of maintaining an active and optimized Google My Business Management profile, businesses are turning to AI-powered solutions for efficient and streamlined operations. Effective content creation, including the publishing of relevant content and regular updates, is crucial to keeping a Google Business Profile engaging and up- to-date. By automating the process of posting fresh content, businesses can ensure their profiles remain active, improving search engine rankings and increasing visibility on Google Search and Maps. These systems also help businesses monitor their customer reviews and facilitate timely review replies, which are key for fostering customer engagement and driving foot traffic. Additionally, AI tools provide comprehensive insights into search volume and customer feedback, enabling businesses to target relevant keywords that improve their visibility in local search results.

    A complete digital footprint includes not only optimized content but also accurate business details and business citations across trusted platforms. With proprietary citation management tools, businesses can easily ensure that their essential details—such as location, contact information, and services—are consistent across the web, further boosting their SEO efforts. The use of an AI-powered content editor can help businesses create content tailored to effective keywords, making it easier to address SEO obstacles and stay competitive. As businesses see progress over time through increased search visibility, these platforms provide valuable data on performance, including tracking key metrics like customer engagement and search engine rankings. By utilizing these tools, businesses can gain deeper insights into their online presence and leverage the data to optimize their approach to local SEO and increase relevant content output consistently.

    Rank With News offers businesses a guaranteed SEO solution that places them on the first page of Google through high-quality media coverage. These media placements drive traffic to their websites, strengthen their online authority, and improve search rankings, creating the perfect complement to Habanero Social’s automated GBP management and local SEO capabilities.

    Hundreds of Customers LLC on Google Maps

    Habanero Social AI-Driven Google Business Profile Automation Platform from Hundreds of Customers LLC

    About Hundreds of Customers LLC

    Hundreds of Customers LLC is a digital marketing firm focused on providing innovative solutions for businesses looking to grow their online presence. With the launch of Habanero Social, the company continues to lead the way in AI-powered marketing, offering businesses powerful tools for optimizing their Google Business Profiles. Additionally, through its Rank With News service, Hundreds of Customers LLC helps businesses achieve guaranteed SEO results through media placements that enhance their authority and search rankings.

    Press Inquiries

    Hundreds of Customers LLC / Rank With News
    https://rankwith.news
    Justin West
    justin@rankwith.news
    913 203 4252
    9200 Indian Creek Pkwy
    STE #047b
    Overland Park, KS 66210

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/db9f5012-89f3-4c07-bd8a-59eef0d95118
    https://www.globenewswire.com/NewsRoom/AttachmentNg/a655bea2-9f69-4f8b-abbc-cc921d39c72c
    https://www.globenewswire.com/NewsRoom/AttachmentNg/551959bd-9f31-4ed7-8c8a-c0ea74b232d5

    A video accompanying this announcement is available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/b12912c9-9328-4de4-a8ea-20f110e7e8ed

    The MIL Network

  • MIL-OSI: dLocal Refutes Short-Seller Allegations and Reconfirms Independent Investigations were Carried Out.

    Source: GlobeNewswire (MIL-OSI)

    MONTEVIDEO, Uruguay, Feb. 20, 2025 (GLOBE NEWSWIRE) — dLocal Limited (Nasdaq: DLO), a leading technology-first payments platform enabling global enterprise merchants to connect with billions of consumers in emerging markets deems the allegations made in a recent short-seller report to be inaccurate and misleading, and made by interested parties who profit from the Company’s stock price falling.

    Any suggestion that the Company failed to properly investigate identical or similar allegations in the past is inaccurate. As the Company has stated publicly, it took prompt action to investigate the allegations raised by a prior short seller report. As previously disclosed, the Company’s Audit Committee, consisting solely of independent directors, oversaw an independent review of the allegations with the assistance of independent counsel and an independent global expert services and forensic accounting advisory firm. The Company has disclosed publicly that the review overseen by the Audit Committee concluded that the prior short-seller allegations were not substantiated.

    dLocal remains committed to high standards of corporate governance, financial integrity, and regulatory compliance. It encourages investors to rely on its audited financial statements and disclosures filed with the SEC, rather than on self-serving and inaccurate reports from short-sellers with a clear financial incentive to cause short-term volatility in our stock price.

    The Company has no further comment on these allegations and remains fully focused on executing its strategy and delivering value to its merchants, shareholders, partners, and employees. It looks forward to discussing its performance during FY24 and Q4’24, and outlook going forward during the next earnings call scheduled for February 27, 2025.

    About dLocal
    dLocal powers local payments in emerging markets connecting global enterprise merchants with billions of emerging market consumers across APAC, the Middle East, Latin America, and Africa. Through the “One dLocal” concept (one direct API, one platform, and one contract), global companies can accept payments, send pay-outs and settle funds globally without the need to manage separate pay-in and pay-out processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.

    Forward-looking statements
    This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal are based on current management expectations and involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” “Forward-Looking Statements” and “Cautionary Statement Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.

    Investor Relations Contact:
    investor@dlocal.com

    Media Contact:
    media@dlocal.com

    The MIL Network

  • MIL-OSI Submissions: Africa – Scottish Africa Business Association Embarks on Pioneering Trade Mission to Kenya

    SOURCE: Scottish Africa Business Association (SABA)

    This mission will take place from 12-16th May and will focus on key sectors that promise mutual growth and innovation

    ABERDEEN, Scotland, February 20, 2025/ — The Scottish Africa Business Association (SABA) (www.AfricaScot.com) is excited to announce a trade mission to Kenya to explore new business opportunities for Scottish companies and institutions, supported by the Scottish Government. This mission will take place from 12-16th May and will focus on key sectors that promise mutual growth and innovation.

    One of our key sectors of focus will be around exploring opportunities in both traditional and innovative energy solutions; our delegates will hear about how they can help enhance energy security and efficiency through strategic partnerships and technological advancements.  As Kenya leads East Africa in renewable energy production, Scottish companies specialising in wind, solar, geothermal and tidal energy will have the chance to find out more about the opportunities in country.

    Building on the strong educational links between Scotland and Africa, the delegation will explore opportunities around vocational training, skills development, and university partnerships to empower the next generation.

    With Kenya’s extensive coastline and rich marine resources, the maritime and blue economy sectors offer vast potential. Our mission will explore sustainable practices in aquaculture, fisheries, marine transport and port logistics and infrastructure to boost economic growth while preserving marine ecosystems.

    Seona Shand, Chief Operating Officer at SABA, said: “SABA’S trade mission to Kenya will feature a comprehensive and engaging programme designed to maximise the benefits for our participants.  We’ll be hosting B2B meetings, round tables, site visits, networking and receptions providing supreme opportunities for them to win new business.”

    Scottish businesses should be interested in the Kenyan market – one of Africa’s fastest growing economies with a diverse and resilient economic base, as the largest economy in East Africa it serves as a gateway to a regional market of over 450 million people.

    The country is a leader in renewable energy, with over 90% of its electricity coming from renewable sources such as geothermal, wind and solar power.  In addition, its growing youth population places high demand on quality education and skills development.  With Scotland’s globally respected higher education institutions and training providers, opportunities are abundant for leveraging talent in a pool primed for innovation.

    Frazer Lang, Chief Executive at SABA, added: “We are pleased to be organising this trade mission to Kenya, a country with immense potential and a shared vision for sustainable growth. This mission represents a significant step towards strengthening our economic ties and exploring new avenues for collaboration.  Scottish businesses can not only drive their international growth but contribute to transformative changes in one of Africa’s most vibrant markets.  Our thanks go to the Scottish Government for supporting SABA to help Scottish businesses in this market.”

    Any Kenyan businesses interested in meeting with the Scottish delegation from the aforementioned sectors are encouraged to get directly in touch with the team from SABA, along with those interested in sponsoring or partnering with SABA.

    For more information, click here (https://apo-opa.co/3X7L9qC).                

    About the Scottish Africa Business Association (SABA):
    SABA is the preeminent non-political, Africa focussed, members trade organisation with an unrivalled board of experienced directors which promotes trade, investment and knowledge sharing between Scotland’s world class expertise and Africa’s priority sectors including energy, agriculture, the blue economy, healthcare, skills training and education by leveraging extensive commercial, trade, political and government contacts across Scotland and Africa.

    As part of this, our team organises private meetings, round tables, seminars, conferences, global trade missions and offers market research, intelligence sharing and consultancy services.                  

    MIL OSI – Submitted News

  • MIL-OSI Submissions: Business – Valsoft Financial Services Portfolio Strengthened with the Acquisition of Digital Currency Systems

    Source: Valsoft Corporation Inc

    Montreal, Canada, February 20, 2025 – Valsoft Corporation Inc. (“Valsoft”), a Canadian company specializing in the acquisition and development of vertical market software businesses, is pleased to announce the acquisition of Digital Currency Systems (“DCS”), a leading provider of cash checking point-of-sale systems for the alternative financial services industry.

    DCS solutions and expertise, empower financial service businesses with turnkey solutions, helping them optimize operations and expand service offerings. Its extensive suite of products enables merchants to provide a wide array of financial services, including check cashing, bill payment, debit card loading, money transfer, and more.

    “Joining the Valsoft family is an exciting new chapter for DCS,” said Todd Gagerman, CEO of Digital Currency Systems. “For years, we have been committed to delivering best-in-class technology solutions to our customers. With Valsoft’s support, we look forward to accelerating our growth, enhancing our technology, and expanding our reach.”

    “DCS has built a strong reputation for innovation and customer service, and we are thrilled to welcome them to Valsoft,” said Antonino Piazza, Investment Partner at Valsoft. “This acquisition reinforces our commitment to investing in industry-leading software businesses and providing them with the resources to scale and thrive. We look forward to working alongside the DCS team to drive long-term growth and success.”

    With this latest acquisition, DCS becomes the fifth financial services company to join Valsoft’s portfolio and the second specializing in check-cashing software.  The DCS team remains committed to serving its customers while leveraging Valsoft’s global expertise and resources to drive future growth.

    About Digital Currency Systems

    Digital Currency Systems is a leading technology provider in the alternative financial services space. Merchants utilize their systems and industry knowledge to manage all aspects of providing services such as check cashing, bill payment, debit card loading, money transfer, and more. For more information: https://www.dcsorg.com/.

    About Valsoft
    Valsoft acquires and develops vertical market software companies that deliver mission-critical solutions. A key tenet of Valsoft’s philosophy is to invest in established businesses and foster an entrepreneurial environment that shapes a company into a leader in its respective industry. Unlike private equity and VC firms, Valsoft does not have a predefined investment horizon and looks to buy, hold, and create value through long-term partnerships with existing management and customers. Learn more at www.valsoftcorp.com.

    Valsoft was represented internally by David Felicissimo (General Counsel). Digital Currency Systems was represented by Faegre Drinker Biddle & Reath LLP.

    MIL OSI – Submitted News

  • MIL-OSI Canada: Prime Minister Justin Trudeau meets with premiers to discuss Canada-U.S. relations and Arctic security

    Source: Government of Canada – Prime Minister

    Today, Prime Minister Justin Trudeau, the Minister of National Defence, Bill Blair, Canada’s Ambassador to the United States, Kirsten Hillman, and Canada’s Fentanyl Czar, Kevin Brosseau, met virtually with Canada’s premiers to discuss Canada-U.S. relations and Arctic security.

    The Prime Minister updated the premiers on Canada’s fight against fentanyl and the continued implementation of Canada’s Border Plan since their last meeting on February 5. These measures include listing seven criminal organizations as terrorist entities; launching new anti-money laundering measures; tackling fentanyl trafficking; modernizing the regulatory framework for banning precursors to prevent their illegal importation and use; establishing a joint Canada-U.S. task force on organized crime; issuing a new intelligence directive on organized crime and fentanyl; and ensuring 24/7 surveillance of the border by deploying helicopters, drones, and 10,000 border personnel.

    The Prime Minister and the premiers discussed the evolving tariff threat from the U.S., including on aluminum and steel and the possibility of reciprocal tariffs. The premiers reflected on last week’s Council of the Federation mission to Washington, D.C., and shared takeaways from their meetings with U.S. partners. Federal, provincial, and territorial leaders agreed to continue their advocacy with U.S. partners to prevent the imposition of tariffs on Canadian goods, which threaten the well-being of families, workers, and businesses in Canada and the U.S. alike. The Prime Minister and the premiers discussed the progress being made to remove barriers to internal trade and labour mobility in Canada, which will make it easier to buy and sell Canadian goods within the country and help strengthen our economy. Team Canada is united in our commitment to protect Canadian jobs and defend Canada’s economic interests.

    The Prime Minister and Minister Blair shared updates on Arctic security, and invited the Premier of the Yukon, Ranj Pillai, to share his perspectives as Chair of the Northern Premiers’ Forum. The Prime Minister underscored that defending Canada’s sovereignty in the Arctic is essential to our national security, the defence of North America, and NATO’s core mission of collective defence and security. Minister Blair highlighted the Canadian Armed Forces’ important work to defend the Arctic and noted recent commitments to further strengthen Arctic security. Our North, Strong and Free, the $73 billion defence policy update the federal government launched in 2024, includes major investments in the North, such as airborne early warning and control aircraft, specialized maritime sensors, new tactical helicopters, a new satellite ground station in the Arctic, and Northern operational support hubs, in addition to a separate $38.6 billion investment in NORAD modernization.

    The Prime Minister thanked the premiers for their ongoing advocacy and emphasized that maintaining a united front will remain critical in the weeks ahead. The Prime Minister and the premiers expressed their gratitude for the leadership and service of the Premier of Prince Edward Island, Dennis King, and wished him well in his future endeavours.

    Associated Links

    MIL OSI Canada News

  • MIL-OSI United Kingdom: First domestic abuse specialists embedded in 999 control rooms

    Source: United Kingdom – Executive Government & Departments

    Raneem’s Law has launched to embed the first domestic abuse specialists in 999 control rooms across five forces and ensure victims receive specialist support.

    Minister Phillips and Nour Norris on a visit to West Midlands Police

    Delivering on a manifesto commitment, today (Friday 21 February), Raneem’s Law has been launched to embed the first domestic abuse specialists in 999 control rooms across five forces to ensure that victims of domestic abuse receive more specialist support.

    West Midlands, Northumbria, Northamptonshire, Bedfordshire and Humberside Police are all pioneering this new approach to improve the police response to victims of domestic abuse.

    This is part of the government’s mission – underpinned by our Plan for Change – to better protect victims, pursue perpetrators and halve violence against women and girls in a decade.

    These domestic abuse specialists will ensure that calls for help are properly assessed, managed and responded to. Specifically, their duties can include:

    • providing advice to officers responding to incidents on the ground
    • reviewing incoming domestic abuse cases and their risk assessments
    • listening in to live calls and providing feedback to call handlers on victim engagement
    • facilitating training sessions on domestic abuse for force control room staff
    • ensuring victims are referred to specialist support services
    • using expertise and understanding to manually check over the decisions made by 999 call handlers and identifying any missed opportunities to safeguard victims
    • supporting the use of innovative technology such as responding to victims via videocall

    The government will work closely with these first forces to gain insight and understanding into how this new approach is working, to inform a national roll-out across all 43 forces and new statutory guidance for Raneem’s Law as soon as possible.

    Home Secretary Yvette Cooper said:

    Every 30 seconds, someone calls the police about domestic abuse – over 100 people every hour seeking urgent help.

    That’s why we are determined to overhaul the police emergency response to domestic abuse, making sure that victims get the specialist support and protection they need. That must be Raneem and Khaola’s legacy.

    West Midlands has been determined to learn the lessons from the way Raneem and her mother were so badly failed and it is welcome that they, Bedfordshire, Humberside, Northumbria and Northamptonshire are all pioneering this ambitious approach to deliver the best possible response to victims at the worst time of their lives.

    We need to change the future for others, where we couldn’t for Raneem, as part of our mission to halve violence against women and girls in a decade.

    For too long, crimes disproportionately impacting women and girls have not been met with the specialist response they require.

    Domestic abuse affects more than 2 million people every year, with the police receiving a call about it every 30 seconds on average. Yet only 1 in 5 victims are estimated to report incidents to the police.

    Raneem’s Law was established in memory of Raneem Oudeh and her mother Khaola Saleem, who were murdered by Raneem’s ex-husband in August 2018. There were 13 reports made to the police about concerns for Raneem’s safety, but no arrests were made. On the night she was killed, she rang 999 four times but the police did not respond in time.

    To deliver a step-change in approach to tackling this appalling crime, the government are providing £2.2 million to fund the first stages of Raneem’s Law over the next financial year.

    Nour Norris, lead campaigner, aunt and sister of Raneem Oudeh and Khaola Saleem, said:

    Raneem called for help, and today, the system finally answered.

    I can’t express enough how deeply emotional and significant this moment is. After six relentless years of campaigning for justice, I am returning to the force that failed my sister, Khaola, and my niece, Raneem. West Midlands Police had the chance to save them. Raneem called 999, desperate for help, but the system did not listen. It did not act. And because of that failure, we lost them.

    I refuse to point fingers or place blame. I believed in change, and I believed in people wanting that to happen. Working alongside the government and the police, especially West Midlands Police has been a journey of change. Raneem’s Law is now being implemented, and with it, a fundamental shift in how victims of domestic abuse are supported.

    Raneem deserved the help she needed, my sister, Khaola, who broke my heart because she was caught in all of this, deserved to live around her children. This is not just about saving lives; it is also about ensuring that victims who survive have the chance to truly live, free from fear and harm. They deserve safety, dignity, and a future.

    This moment proves that change only happens when we refuse to accept failure. We cannot wait for another tragedy. We must build the safeguards that should have been there all along. And while nothing will bring Khaola and Raneem back, their voices, struggles, and sacrifices have led to a law that will save lives. Their legacy will live forever.

    Because the scale of violence against women and girls is a national emergency, earlier this month we announced a new intelligence-led national policing centre for England and Wales. Backed by £13 million, the centre will bring together around 100 officers to focus on tackling crimes such as domestic abuse, stalking, rape and sexual offences and ensure that victims are protected.

    Minister for Safeguarding and Violence Against Women and Girls Jess Phillips said:

    Raneem’s death showed us the devastating cost of missed opportunities.

    Behind every 999 call is someone’s daughter, mother, sister or friend in fear. That’s why getting the response right the first time, every time, is absolutely crucial. Embedding specialism and expertise into 999 control rooms will ensure that when victims make that brave call for help, they get the expert response they need.

    Working alongside Nour has shown me the true meaning of courage and determination. Her fight for Raneem’s Law, to change things for victims of domestic abuse before it is too late, will save lives. We are determined to halve violence against women and girls in a decade and won’t stop until every victim, up and down the country, gets the protection they deserve.

    Under our Plan for Change, we are taking the serious action needed to drive change across the country. Launching Raneem’s Law is another part of our effort to ensure that government and law enforcement can effectively tackle these unacceptable crimes.

    National Police Chiefs’ Council lead for Domestic Abuse, Assistant Commissioner Louisa Rolfe, said:

    When a victim reports domestic abuse, they must have confidence that they will be protected from harm, which is why it’s so important that we get our response right from the moment we are called.

    Forces work hard every day to ensure victims receive the right response and support, and embedding expertise and victim advocacy at the earliest opportunity is vital.

    It’s important that we are both evidence and victim-led in our approach, and I would like to thank the victims and survivors, families and support organisations that continue to work with us to improve policing’s response to domestic abuse.

    Updates to this page

    Published 21 February 2025

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Early years reform to cut costs and deliver on Plan for Change

    Source: United Kingdom – Executive Government & Departments

    Parents to save cash through new guidance to prevent overcharging on childcare whilst £75 million will help deliver final phase of childcare rollout

    Parents are set to save money on childcare thanks to new protections from additional charges on top of the government’s funded childcare offer, increasing access to high-quality early education and putting cash back into working families’ pockets. 

    To ensure no family is priced out of the support they need, the government has published updated guidance today that puts transparency at the heart of how the funded hours should be delivered, supporting local authorities to ensure providers make all additional charges – whether for nappies, wipes or lunch – clear and upfront to parents, and setting out that these charges must not be included as a condition for parents accessing their hours.  

    Giving every child the best start in life is central to the government’s mission to break the unfair link between background and success, and its Plan for Change to get tens of thousands more children a year school-ready by aged five.   

    As part of this, the government is committed to delivering on the promises made to working parents, so they can save up to £7,500 on average from using the full 30 hours a week of government funded childcare support, compared to paying for it themselves. 

    Education Secretary Bridget Phillipson said: 

    Giving every child the best start in life is my top priority, and integral to our mission to ensure tens of thousands more children are school ready every year.  

    That’s why despite the inherited challenges we face, we are pressing ahead with the investment and leadership needed to support families and make sure that every child, regardless of background, can access the high-quality early education they deserve. 

    Today marks an important step towards an early years system that is accessible for parents, sustainable for providers, and better serves children’s development.

    This comes as the government has announced a targeted approach to its next tranche of early years funding to support the sector to deliver the new places needed for parents of children from nine months old looking to take up the entitlements for the first time. 

    Despite having to take tough decisions to fix the foundations of the economy, the government is increasing investment in early years to over £8 billion next year. 

    This includes a dedicated £75 million expansion grant, which will be targeted to providers supporting delivery of the expanded 30 hours of government-funded childcare in September, helping parents with children from nine months back into work and boosting household finances. 

    This means that private and voluntary providers, including childminders, are expected to see significant impact from a share of an average of around £500,000 in local areas. Funding allocations will vary between local authorities, reflecting local circumstances, with some of the largest areas seeing up to £2.1 million. 

    £75m is equivalent, on average, to an additional £80 per two-year old, and £110 per child under-two, though final amounts of funding reaching providers will depend on local circumstances. 

    The government also continues to make quick progress towards its Plan for Change milestone, with thousands of early years educators continuing to benefit from support networks and early maths training this year. 

    The Stronger Practice Hubs programme, which supports early years settings to deliver high-quality education by sharing knowledge and evidence-based approaches via 18 regional Hubs, has been funded for a further year.   

    On top of this, as part of wider work to deliver on the government’s commitment to boost early maths support for children, the Maths Champions programme delivery also launches this month – with up to 800 early years settings to benefit from the training this year.  

    Delivered in partnership with the National Day Nurseries Association and Education Endowment Foundation, an evaluation of the programme showed children in settings receiving the Maths Champions programme can make an average of three months’ additional progress in maths compared to their peers.  

    Educators in this year’s first cohort of 156 settings will take up the training this month, with spaces still available for sign-ups from March to June. 

    These programmes form part of wider vital work to drive high and rising standards across early education, offering improved early learning support and the training that educators need to prepare children for school.  

    The government will continue to work closely with parents and providers to deliver its ambitious reforms so that tens of thousands more children have the invaluable skills needed from communication and maths to personal, physical and social development to have the best possible life chances.  

    Lydia Hodges, head of Coram Family and Childcare, said:  

    We welcome the clarification in this update, which is something we have been calling for to address the high level of variation in childcare costs to parents. Our research shows that additional charges can be a major barrier to families – particularly disadvantaged families – taking up their funded early education entitlements.  

    Supporting childcare providers through these changes will be essential, to ensure the sector remains stable, but this updated guidance is an important step towards a transparent system that allows parents to make informed choices about their childcare options and enables all children to access their entitlements, particularly those who stand to benefit the most from high quality early education.

    Emily Yeomans, Co-CEO of The Education Endowment Foundation, said: 

    Our independent evaluations of the Maths Champions programme have consistently shown its potential in establishing solid foundations in maths for young children. Crucially, this potential is even greater for children from socio-economically disadvantaged backgrounds. 

    A strong grounding in early maths is so important for setting up children for later success, acting as a fundamental enabler of later opportunity. So I’m delighted that we’re able to offer hundreds of early years settings access to the programme this year so that many more children can benefit.

    Updates to this page

    Published 21 February 2025

    MIL OSI United Kingdom

  • MIL-OSI New Zealand: Speech to Committee for Auckland

    Source: New Zealand Government

    Good afternoon. Can I acknowledge Ngāti Whātua for their warm welcome, Simpson Grierson for hosting us here today, and of course the Committee for Auckland for putting on today’s event.
    I suspect some of you are sitting there wondering what a boy from the Hutt would know about Auckland, our largest city.
    Well, let me reassure you that I know and love this city. I lived here for two years, many of my friends live here, and I am here almost every week.
    Auckland is critical to New Zealand’s future and today I want to talk about how we create that future, with central government working alongside the Auckland Council and Auckland communities.
    Growth 
    Let me start with the economic picture.
    We are in challenging economic times. The government came to office with New Zealand in the midst of a prolonged cost of living crisis, with high inflation, high interest rates, and after years of profligate debt-fuelled government spending.
    Turning that around is not going to be easy and it is not going to happen immediately.
    We have made good progress. Budget 2024 started the repair job. Business and consumer confidence is returning. The OCR was cut by another 50 basis points on Wednesday, meaning mortgage rate relief for households. The latest Federated Farmers Farm Confidence Survey shows confidence surging by 68 points since July 2024 – the largest one-off improvement in sentiment since the question was introduced.
    But there is a lot to do, and we need to be honest with ourselves. We have been slipping for years. 
    Our challenge as a country isn’t just about the last few years, or even the last decade.
    We have low productivity growth, low capital intensity in our firms, low levels of competition in many sectors, challenges in attracting and retaining skills and talent, low uptake of innovation, unaffordable housing and a growing tail of New Zealanders leaving school without basic skills. 
    But stagnation and mediocrity is not our destiny.
    Not if we make the right choices and not if we have courage.
    Going for economic growth means saying “yes” to things when we’ve said “no” in the past.
    It means taking on some tough political debates that we’ve previously shied away from. I’m going to talk about one today.
    It means bold decisions which may look difficult at the time but which in hindsight will be regarded incontrovertibly as the right thing to do.
    Managed decline is only inevitable if we let it be.
    Auckland Growth 
    So today I want to talk to you about Auckland and how important it is to our plans.
    Auckland is New Zealand’s capital city of growth. It is home to one third of New Zealand’s population and contributes nearly 40% to our national GDP. It has higher labour productivity than the rest of New Zealand, and is home to some of New Zealand’s most exciting growth-industries, with 116 of our country’s top 200 tech firms calling Auckland home. 
    We are not going to be successful in growing our economy if we don’t think carefully about how we enable Auckland, as our largest and most important city, to thrive. 
    I have the enormous privilege of being the Minister of Housing, Infrastructure, RMA Reform and now Transport.
    I am determined to help build an Auckland that is a world-class, international city.
    I make no apologies for being an urbanist. Well-functioning urban environments with abundant housing, transport that gets people where they need to go quickly and efficiently, and functional infrastructure, will do more to create a brighter future for Kiwis than just about anything else government can do. 
    Next year is shaping up as an exciting one. The first trains will run on the City Rail Link and the NZ International Convention Centre will finally open its doors.
    The government is investing heavily into transport in Auckland, through new Roads of National Significance, new busways, and commuter rail.
    These investments build on the significant progress made in recent years, particularly by National-led governments – think of Waterview, the Victoria Park Tunnel, and the starting of the City Rail Link.
    A couple of weeks ago it was my pleasure to mark the start of the extension of the Auckland commuter network to Pukekohe, with the completion of the electrification of the line from Papakura to Pukekohe.
    Later this year the Third Main line rail project will conclude, helping ease congestion and enabling faster train journeys. 
    The growth of the Auckland commuter rail network since the early 2000s has been remarkable and the government is keen to encourage that growth.
    Because the reality is that congestion is choking Auckland.
    The average Auckland commuter spends over 5 days in traffic each year. In fact, in 2024 the Auckland metro area had the highest congestion levels in Oceania. This means Auckland is less productive, less accessible, and less liveable that it should be. 
    Congestion stifles economic growth in Auckland, with studies showing that it costs between $900 million to $1.3 billion per year.
    Congestion is essentially a tax on time, productivity, and growth. And like most taxes, I’m keen to reduce it.
    The government will be progressing legislation this year to allow the introduction of Time of Use pricing on our roads.
    We will send that Bill off to a select committee before the end of March and the public will be able to have their say on it.
    There has been study after study into time of use pricing in New Zealand. It’s time to get on with it.
    The framework we have agreed to will enable local councils to propose time of use schemes on their networks.
    All schemes will be focused on increasing productivity and improving the efficiency of traffic flow in cities. Local councils will propose schemes in their region, with NZTA leading the design of the schemes in partnership with councils to provide strong oversight and to ensure motorists benefit from these schemes. 
    All schemes will require approval from the Government.
    Any money collected through time of use charging will be required to be invested back into transport infrastructure that benefits Kiwis and businesses living and working in the region where the money was raised. Councils will not be able to spend this money on other priorities.
    The Government will prioritise working with Auckland Council on designing a Time of Use pricing scheme that increases productivity and reduces congestion.
    Modelling has shown that successful congestion charging could reduce congestion by up to 8 to 12 percent at peak times, improving travel times and efficiency significantly.
    Auckland Housing 
    That brings me to housing. 
    One of the things I’ve been trying to emphasise since I became a Minister is that housing has a critical role to play in addressing our economic woes.
    There is now a mountain of economic evidence that cities are unparalleled engines of productivity, and the evidence shows bigger is better.
    New Zealand can raise our productivity simply by allowing our towns and cities to grow up and out. We need bigger cities and, to facilitate that, we need more houses. As our biggest city, Auckland has to be a leader in this mission.
    As Housing Minister I am focused on getting the fundamentals of the housing market sorted. 
    The Government’s Going for Housing Growth agenda involves freeing up land for development and removing unnecessary planning barriers, improving infrastructure funding and financing, and providing incentives for communities and councils to support growth.
    Report after report and inquiry after inquiry has found that our planning system, particularly restrictions on the supply of urban land, are at the heart of our housing affordability challenge.
    We are not a small country by land mass, but our planning system has made it difficult for our cities to grow. As a result, we have excessively high land prices driven by market expectations of an ongoing shortage of developable urban land to meet demand. 
    Last year Cabinet agreed to a number of specific actions it would take to free up land for development, which we’ve called Pillar One of our Going for Housing Growth Plan.
    These include new housing growth targets for the country’s largest councils, new rules to make it easier for cities to expand outwards at the urban fringe, such as the abolishment of the rural-urban boundary in Auckland, a strengthening of the intensification provisions in the National Policy Statement on Urban Development including requiring more mixed-use zoning, the abolishment of minimum floor areas and balcony requirements, and making the MDRS optional for councils. 
    These changes build on the existing Auckland Unitary Plan, which evidence shows has made a real difference in Auckland. 
    It also builds on the National Policy Statement on Urban Development brought in by the last government, which we support.
    I am focusing on the fundamentals because ultimately that is what drives price.
    Very soon I will announce Cabinet decisions around better infrastructure funding and financing tools, so growth can be properly funded.
    And I’ll also soon announce decisions on how we will replace the Resource Management Act, the giant millstone on the neck of the New Zealand economy. 
    City Rail Link 
    Speaking of infrastructure, let’s talk about the City Rail Link.
    Without a doubt, the most transformative and ambitious project in recent memory in Auckland is the City Rail Link. 
    Under the feet of Auckland for the better part of a decade has been the most ambitious, and one of the most expensive, projects in the city’s history. Thousands of workers building 3.5 kms of tunnel to bring Auckland’s transportation system into the 21st century.
    When I was made Transport Minister by the Prime Minister earlier this year, I said to my team that I wanted my first visit to be to see City Rail Link. To me, this project epitomises the opportunities in New Zealand’s transport future.    
    Once open next year, CRL will double Auckland’s rail capacity and reduce congestion across the city, enabling Aucklanders to get to where they want to go faster.
    This will be huge for the city. The privilege of not having to worry about missing a train because another one is only minutes away is something, up until now, Aucklanders have only been able to experience in cities like London or Tokyo. But now it’s almost Auckland’s turn.
    I’ve been down to the new stations. Aucklanders are going to be blown away. My prediction is that people will say what they always do once a big new project eventually finishes: why didn’t we do this decades ago?
    It is critical for the city’s future that we take advantage of CRL and ensure that the maximum benefits are felt by Aucklanders. That’s why today I am pleased to announce a number of steps the Government is taking to fully harness the true benefits of City Rail Link.
    Level Crossings
    The first step is removing level crossings. 
    CRL will only achieve its true potential capacity by the removal of level crossings – locations where roads and rail tracks intersect.
    Frankly, every motorist under the sun hates them, me included. They require the direct trading-off between road-user efficiency and rail-user efficiency. 
    Separating our train and roading systems by grade-separating level crossings greatly reduces traffic delays for motorists, while at the same time enables more frequent and reliable trains. It means that, in future, we can run many more trains on the Auckland network, without having to worry about disrupting the road network.
    Crucially, it will also make our railways safer. In the decade between 2013 and 2023, Auckland saw almost 70 crashes – some of these serious, as well as more than 250 pedestrian near-misses and 100 vehicle near misses at level crossings across the city. That’s almost one incident a week. 
    Investment in Auckland’s level crossings delivers a faster, safer, and more reliable transport system. It’s a win, win, win.
    Sorting level crossings in Auckland will take many years and cost a lot – but it is imperative we crack on with the job of doing the most important ones first.
    I am announcing today that, subject to final approval by the NZTA board, the Government will be allocating funding for its share of the cost of accelerating the grade-separation of 7 level crossings in Takāanini and Glen Innes. 
    The work will involve building three new grade-separated road bridges at Manuia Road, Taka Street, and Walters Road; constructing new station access bridges at Glen Innes, Te Mahia and Takāanini Stations, and closing two unsafe crossings at Spartan Road and Manuroa Road.
    Auckland Council has previously indicated that it is willing to fund its share of the cost, so this announcement will provide Aucklanders with confidence that the work will go ahead.
    Removing these level crossings now also enables us to take advantage of already planned network closures and will hopefully avoid the need for disruptions to the rail network in the future to make these much-needed changes.
    We are committed to the most efficient transport system in Auckland for everyone – no matter how you get around. For us, it’s never only about trains, or only about cars, or only about buses, or only about bikes. It must be all of the above – which is exactly why we are prioritising the removal of these level crossings 
    Transit oriented development
    As I’ve said, there are a number of actions being taken across the Auckland Rail network with a focus on transforming connectivity throughout the city. City Rail Link is just one part of it.
    This ambitious programme of work will open up job opportunities, new investment opportunities, and new places to live and work.
    It should also, in theory, result in a significant increase in development density in and around Auckland’s railway stations, especially those benefiting from City Rail Link.
    We have to ask ourselves: are we doing all we can to fully take advantage of this multi-billion-dollar transport investment? 
    I believe that in order to properly unlock economic growth in Auckland, we must embrace the concept of transit-oriented development adopted by the world’s best and most liveable cities.
    This approach promotes compact, mixed-use, pedestrian friendly cities, with development clustered around, and integrated with, mass transit. The idea is to have as many jobs, houses, services and amenities as possible around public transport stations. 
    This is not an untested theory: transit-oriented development has been adopted across the world in cities like Stockholm, Copenhagen, Hong Kong, Tokyo, and Singapore.
    Cities that embrace this approach consistently outperform those that don’t across multiple metrics: they experience increases in productivity, lower unemployment, higher population growth, increased availability of homes, and more stable rents.
    A floor filled with smart people working next to each other, in a building filled with floors of smart people working next to each other, unsurprisingly, enables greater economic opportunities for productive growth. Proximity encourages collaboration and innovation.
    Transit-oriented development creates exactly these kinds of possible agglomeration effects – for example, it has been shown that doubling job density increases productivity by 5 – 10%. 
    The evidence speaks for itself. 
    Let’s look at Stockholm, where development has generally followed the city’s main public transport corridors. There, the gross value added per capita grew 41% between 1993 and 2010. In fact, both Stockholm and Copenhagen rank as among the world’s top cities in terms of per capita GDP.  
    Across the ditch in Sydney, they have just opened their brand-new Sydney Metro development, which has been widely recognised for its successful integration of high-density housing and mixed-use developments. This project is expected to contribute around AUD $5 billion annually to the New South Wales economy.
    To answer the question: are we doing all we can to fully take advantage of City Rail Link? The answer is clearly no.
    So, today I am announcing that the Government will be kicking off a work programme to properly take advantage of the opportunities that transit-oriented development could have on Auckland, and what actions we can take in the short-term to better enable development clusters around City Rail Link stations.
    Right now, Auckland Council is only required to zone 6 stories around rapid transit stops. We are going to need to go much, much higher than that around the CRL stations if we truly want to feel the benefits of transit-oriented development.  
    My aspiration is that in 10-20 years’ time, we have 10-20 storey apartment blocks dotting the rail line as far west as Swanson and Ranui. But for right now, we need to look at how to increase development opportunities around the inner core of stations.
    Take Kingsland, for example.
    Once CRL open Kingslanders will have a 20 minute travel time saving to Aotea station from the project. But Kingsland’s population actually declined by 4.7% between 2019 and 2023; and while Auckland averaged 15,375 annual new builds over the last 5 years, Kingsland built just 22.
    Compare that to Paramatta in Sydney. It too benefits by circa 20 minute time savings from the Sydney Metro project and has upzoned from a few stories to more than 60 in some cases.
    Kingsland is still predominantly made up of single story dwelling zones.
    How about if our aim is to make the special character of suburbs be that they are thriving, liveable, affordable communities with access to regular and reliable public transport?
    For many families, the dream of home ownership looks a little different today. Many young families are now choosing to swap the station wagon for the train station, and the corner dairy for the cafe.
    There will always be a place in New Zealand for the quarter-acre section and the large family home. But we have to be honest with ourselves: that place isn’t within a stones-throw of a transformational piece of transport infrastructure with the ability to shuttle tens of thousands of passengers each day. 
    We must allow Kiwis to make the choice that’s best for them. Permitting more development close to train stations and rapid bus routes supports those who want to live nearer to their work and their friends, just like the significant investment the Government is making in new highways and roads support those who want to live in our world-class towns and suburbs. 
    Change is inevitable. My job as a Minister it to make sure that change is shaped by the lives Kiwis want to live and the homes they want to live in.
    Viewshafts 
    One barrier to proper high-density in Auckland, including around City Rail Link stations, is undoubtedly the current settings of the 73 viewshafts that have restricted the height of the city since the early 1970s. 
    In 2016, the Independent Hearing Panel for the Auckland Unitary Plan recommended further work on the viewshafts, including refining them to improve their efficiency and reduce opportunity costs. In the almost-decade since, this work has not been progressed.
    Some of these viewshafts don’t make a lot of sense. The Unitary Plan protects the view from the tolling booths on the North Shore, so that those people sitting in their cars getting ready to pay their toll for the Harbour Bridge have a nice view of Mt Eden. Of course there hasn’t been tolling booths on the North Shore since the mid-1980s. 
    Forty years later, we are still protecting a view that would be considered dangerous-driving to admire. A study done in 2018, looking at this one view shaft – the E10 – showed that its cost was roughly $1.4 billion in lost development opportunities. This is just the impact of one of the 73 viewshafts. 
    It is worth stressing that the cost is almost certainly much greater than $1.4 billion. It only includes costs to the city centre, and about half the land under E10 falls outside the city centre. So add that on.
    It doesn’t look at the positive externalities of intensification, such as agglomeration and other wider economic benefits. So add that on too.
    It doesn’t look at public land, just private. Add that on. 
    And it’s based on 2014 land values.
    And this is just one viewshaft.
    I hope you’ll agree with me that the cost is immense.
    Aucklanders and local mana whenua have always had a special relationship with the Māunga and Volcanic cones that their city is nestled between. It is right that we acknowledge and protect this special relationship. 
    But even just minor tweaks to existing viewshafts could materially lift development opportunities. The 2018 study showed that rotating the E10 viewshaft just 4.5 degrees to the left maintains the view of Mt Eden for a similar amount of time, whilst saving the city 43% of the lost development opportunity cost.
    Today I can tell you that Mayor Brown and I have had discussions on this issue, and he said he is open to a fresh look at Auckland’s viewshaft settings in its Unitary Plan. We agree that the time is right to start the conversation. This is particularly relevant where the viewshafts impact the CBD and major transit corridors.
    We are committed to trying to find a way though – alongside mana whenua – to get the balance right between economic growth, and the special role these Māunga play in the unique identity of Auckland. 
    We are not proposing to remove these viewshafts. Rather, we are recognising that as the city changes, and there will be areas where the viewshafts should change with it.
    The tollgate viewshaft example above proves that it is possible to eat our cake and have it too. We can both preserve views and enable more development. That is the kind of change that a dynamic city requires to be the best for all its people.
    Conclusion
    Auckland has a bright future. 
    You have the country’s premier convention centre opening early next year. 
    You have City Rail Link opening later next year. 
    You have what are essentially new cities being built to your west, and to your south.
    New roads are opening.
    Congestion pricing is on the way.
    And more housing is being built. 
    Whenever I come here, I get a palpable sense of opportunity knocking.
    This city isn’t waiting: it’s getting on with the mission of growth. 
    It is bursting at the seams with opportunities – now, it is the responsibility of all of us to help make it happen. 
    Thank you.

    MIL OSI New Zealand News