victoria’s business agenda 20 4 - victorian … · 28 business confidence hits a three-year high...
TRANSCRIPT
summer 2013-14 $9.99 Per edition $34.99 annually
ELECTION 2014 VECCI SETS
VICTORIA’S BUSINESS AGENDA
What lies ahead? mEmBERS ShARE ThEIR pREDICTIONS
20 4PROMOtiNG PROdUCtiVitY BUILDING A hEALThIER BUSINESS IN 2014
lessONs iN leadeRshiP pAVING yOUR pATh
TO SUCCESS
NeW YeaR NEw OppORTUNITIES fOR BUSINESS
Summer 2013-14 | BE 1
Business excellence is puBlished By the Victorian employers’ chamBer of commerce and industry (Vecci).486 albert Street eaSt Melbourne ViC 3002 © VeCCi 2013. no part of this publication may be reproduced in any manner or form without written permission from VeCCi. the views expressed in business excellence magazine are not necessarily those of the editors or the Victorian employers’ Chamber of Commerce and industry. you should also ensure that you obtain appropriate professional advice about the issues referred to in this publication.
iSSn 1835-873x
EDITOR: rachel Hewitt DEsIgn: 3 degrees Marketing
FOR EDITORIAL EnQUIRIEs COnTACT:rachel Hewitt Ph: 03 8662 [email protected]
ADVERTIsIng EnQUIRIEs:3 degrees MarketingPh: 03 8416 5999
sUbsCRIpTIOn EnQUIRIEs:Ph: 03 8662 5333
Environmental profilethis publication was proudly printed in australia by Madman Printing using soy - based inks and FSC certified, responsibly sourced paper.
BUSINESS EXCELLENCE
2 a message from the VeCCi President
3 Chief executive welcome
4 news
5 From the headlines
6 VeCCi online
8 Welcome new members
10 Victorian business sets agenda for 2014 state election
FEATURE
12 2014: new year, new opportunities for business
14 australia is open for small business in 2014
16 realising our growth potential
18 our priorities to secure Victoria’s competitiveness
20 investing in skills and transport – the keys to Victorian productivity
22 new year’s expectations: What lies ahead?
26 regional round-up: the road ahead in 2014
28 business confidence hits a three-year high with renewed optimism for 2014
30 new year marks the beginning of a new Victorian university
32 australia’s new workplace bullying laws – what employers need to know
34 encouraging efficiency and promoting productivity – building a healthier business in 2014
36 lessons in leadership: Paving your path to success
38 Workers’ compensation changes ahead in new year
39 top tips for a greener, leaner new year
GLoBAL
40 VeCCi forges new links with Chinese business and consumers
42 Members honoured for export excellence
ThE ECoNomy
44 What business needs from the new Federal Government
INFRASTRUCTURE
47 Planning strategy a stepping stone to investment and job creation
48 innovative infrastructure: Meeting Victoria’s growing trade demand
SkILLS
51 advancing your workforce through Skills Connect
52 the youth skills challenge for government
WoRkPLACE RELATIoNS
54 employee consultation – why it’s now more critical than ever
ToURISm
56 Global spotlight on Melbourne Convention and exhibition Centre
SUSTAINABILITy
58 Powering your business – top tips for solar success
59 VeCCi member wins Victoria’s top sustainability prize
EvENTS
60 VeCCi business leaders lunch
61 Women in business
62 VeCCi-Pitcher Partners Grand Final lunch
64 2013 VeCCi Victoria Summit
28 business confidence hits a three-year high with renewed optimism for 2014
36 lessons in leadership: Paving your path to success
32 australia’s new workplace bullying laws – what employers need to know
56 Global spotlight on Melbourne Convention and exhibition Centre
Business Excellence
C E L E B R AT I N G I N S P I R AT I O N A L
M E L B U R N I A N S
summer 2013-14 CoNTENTS
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With 2014 ahead of us, Victoria is well-placed to capitalise on opportunities for growth. our state finances are in good shape, providing a solid foundation; Victoria’s attractiveness as a place to live and work is evidenced by ongoing robust population gains; and the strong performance of our exports illustrates the growing appetite for our products and services in emerging global markets.
Victoria’s triple-a credit rating, and the fact that it is the only jurisdiction in australia forecasting a budget surplus in every year over the forward estimates period, demonstrates our economic resilience against challenging conditions at home and abroad. When combined with the state’s sectoral strengths in areas such as financial services, agribusiness, education, advanced manufacturing, tourism and the arts, we are in pole position to embrace jobs, trade and investment prospects.
as the state’s peak business organisation, it is VeCCi’s job to support Victorian enterprise to seize these opportunities. For example, VeCCi’s Global division helps businesses reach new export markets, whether they are large corporations keen to expand their global footprint or SMes seeking to export for the first time. also, through its extensive range of training services, VeCCi helps equip businesses with the skills they need to ensure their organisations are innovative, productive and future-ready. as well as helping companies and SMes to achieve these longer-term goals, VeCCi provides vital support with the day-to-day tasks employers face in areas such as workplace relations and occupational health and safety.
VeCCi’s key role is as the premier advocate for Victorian business and industry. it proactively shapes the business agenda through its policy and advocacy efforts, identifying the reforms needed to accelerate productivity, investment and employment and influencing decision-makers on issues that are paramount to securing Victoria’s prosperity.
an important part of this advocacy role is championing the interests of VeCCi’s diverse membership base, from sole traders and small to medium businesses through to Victoria’s largest employers.
importantly, Victoria’s regional enterprises have a strong voice through VeCCi. our state benefits from its modern, dynamic and confident regional communities and boasts the lowest regional unemployment rate in australia. regional Victoria is also home to critical export industries, such as food and fibre exports, which reached a record high of $9.4 billion in 2012-13.
i joined the VeCCi board in november 2007 and served as deputy President until my appointment to the role of President at VeCCi’s recent aGM. it is with much pleasure that i take up this position. through business leadership and services focussed on policy solutions, innovation and excellence, VeCCi positively influences Victoria’s future. i am keenly interested in the organisation listening well and advancing the interests of Victorian business through policy that directly results from wide consultation and research. i look forward to working with you during my tenure and wish you the best for a prosperous 2014.
the hon mark Birrell was elected Vecci president at Vecci’s 2013 annual General meeting on 19 november. he is a prominent non-executive director, with current roles including chairman of the port of melbourne, chairman of citywide pty ltd and chairman of the australia post superannuation fund. mark is the recently retired chairman of infrastructure partnerships australia and he serves on the statutory board of infrastructure australia. earlier roles have included being the national leader of the infrastructure group at minter ellison lawyers and chairman of evans & peck limited. mark is a former Victorian cabinet minister and Government upper house leader. he is a fellow of the australian institute of company directors.
A message from the VeCCI President the hon marK Birrell
2013 has been a momentous year for the business community and 2014 is set to be just as busy, with the Victorian state election scheduled for late november.
‘news-making’ events began early in 2013, with the instatement of the Hon dr denis napthine MP as Victoria’s new Premier in March. VeCCi welcomed dr napthine’s appointment as it presented an opportunity for the State Government to
restate its agenda, providing business and the wider community with greater stability and confidence in otherwise challenging times. the following month, dr napthine shared his vision for Victoria at an exclusive VeCCi event, identifying the east West link and Melbourne Metro rail tunnel as vital, game-changing projects.
april was a busy month for VeCCi, with the launch of the Small business – too big to ignore pre-federal election campaign. run by VeCCi in conjunction with the australian Chamber of Commerce and industry (aCCi) and other state chambers from around the country, the campaign focussed on four key policy priorities – cutting red tape, building better infrastructure, making it easier to employ people and simplifying the tax system.
also in april, VeCCi’s work in helping timor-leste to establish its first united chamber of commerce since the country achieved independence was recognised on a global stage. VeCCi’s timor-leste Chamber Project was selected as one of five finalists in the category of best Corporate Social responsibility Project as part of the 2013 World Chambers Competition in Qatar, which recognises the most innovative projects undertaken by chambers all over the world.
Financing key infrastructure, breaking down barriers to investment and capitalising on Victoria’s international opportunities were key planks of VeCCi’s 2013-14 State budget Submission. We welcomed the Victorian Government’s focus on state-shaping infrastructure projects in the budget in May, which included committing $294 million to the first stage of the east West link.
a July highlight was VeCCi’s relaunch of the historic and influential Melbourne Chamber of Commerce, uniting leading businesses from across the city and the state. the Chamber provides a framework in which established and respected businesses can work together, with a
focus on attracting new investment to Victoria and building new export opportunities.
by federal election polling day in September, the Small business – too big to ignore campaign had gained significant traction, attracting more than 110,000 voices of support. We were pleased that the Coalition Government’s small business policy embraced several of the priority reform recommendations identified by the campaign, and we will continue to advocate for ongoing reform that will help drive business prosperity.
october was another milestone month, with VeCCi’s principal policy event, the Victoria Summit, held at Parliament House, Melbourne. the Summit involved more than 100 delegates from a wide range of businesses, government agencies, local councils and other stakeholders who discussed and confirmed the business agenda needed to accelerate Victoria’s growth and competitiveness. thank you to all participants for your engagement and enthusiasm. the reform recommendations discussed at the Summit will underpin VeCCi’s advocacy efforts ahead of the 2014 state election; to learn more, see page 10.
i was pleased to join the Premier’s Super trade Mission to China in october, an event that showcased Victoria’s exemplary food and beverage sector, amongst other key industries. the mission was well received by delegates and Chinese representatives. to learn more about VeCCi’s efforts to connect Victorian businesses with opportunities in China through new projects, see page 40.
Congratulations to Mark birrell, who was elected the new President of VeCCi at our november aGM. Congratulations and thanks also to outgoing VeCCi President Peter McMullin for his outstanding work over the past three years.
as the year draws to a close, on behalf of the VeCCi team, i would like to thank you for your ongoing support in 2013. We look forward to working with you again in 2014 and wish you a happy festive season.
Chief executive welcome marK stone
we were pleased that the Coalition Government's small business policy embraced priority reform recommendations and we will continue to advocate for ongoing reform that will help drive business prosperity.
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Vecci-BanK of melBourne surVey of Business trends and prospects
Herald Sun, 25 october 2013
“business confidence has taken a leap in the past quarter, despite a tough trading period for businesses across Victoria. now is the time for the new Coalition Government to cement this sentiment, and press on with delivering its pro- business, pre -election commitments.” VeCCi Chief executive Mark Stone
the Weekly times, 25 october 2013
"businesses in regional Victoria are more positive about their economic future since the change of the Federal Government, a new report shows. a survey released today shows regional Victorian businesses are more likely than their city counterparts to expect stronger national and state economic conditions over the next 12 months."
Victoria’s BudGet surplus
aaP, 14 october 2013
“Victoria’s peak business body VeCCi said the result showed Victoria’s economic resilience despite challenging economic conditions at home and abroad.”
Vecci china export trial
the australian, 16 october 2013
"Victoria’s most powerful employer group is teaming up with an online supermarket chain in China to send produce directly to the homes of Chinese consumers as the state’s agribusiness sector ramps up its ambitions to become the 21st century food bowl to asia.
Victorian employers’ Chamber of Commerce and industry Chief executive Mark Stone said the chamber was testing the venture with the supermarket chain, which has more than 600,000 customers in China, with a view to it going live in december."
the 2013 Vecci Victoria summit
Herald Sun, 10 october 2013
"Peak business lobby group, the Victorian employers’ Chamber of Commerce and industry, is seeking to shape the agenda in the run-up to next year’s state election."
bendigo advertiser, 14 october 2013
"a Melbourne business summit has heard small changes can make a big difference to local companies."
Herald Sun, 18 october 2013
“at the recent VeCCi 2013 Victoria Summit, business representatives confirmed the agenda needed to accelerate growth and increase Victoria’s competitiveness.” VeCCi Chief executive Mark Stone
the relaunch of the melBourne chamBer of commerce
the australian, 16 october 2013
"it was seemingly assigned to the annals of history almost a quarter of a century ago, but the historic and influential Melbourne Chamber of Commerce has been officially relaunched by VeCCi to help more effectively leverage the clout of the city’s most powerful companies to push for policy change at the state and federal level."
puBlic holiday ‘sicKies’
3aW, 4 november 2013
"the Victorian employers’ Chamber of Commerce and industry’s richard Clancy says while most people have discussed taking today off with their employer, others planning a false sickie should be wary."
From the headlinesVECCI speaks up for Victorian business
from the heAdlInes
Port zoning changes will support future trade growthVeCCi has welcomed the announcement of a new planning zone for Victoria’s major ports, along with streamlined planning controls.
the changes will provide clarity and certainty to ensure the future development needs of our ports are met, while the introduction of streamlined planning controls will remove an unnecessary red tape burden.
We have consistently highlighted the importance of improvements to Victoria’s port infrastructure to ensure we can meet the forecast growth in container freight and capitalise on international trade opportunities.
While immediately supporting the Port of Melbourne redevelopment to ensure it remains australia’s premier container port,
the changes will also support the long-term development of ports infrastructure across the state, including the future development of the Port of Hastings as an international container port.
the ongoing development of our ports is vital to ensure we can efficiently and effectively meet our growing export opportunities, which will bring economic benefits to the entire state.
Automotive industry too important to leave to chancethe automotive industry is australia’s largest single manufacturing segment and governments at all levels must take seriously the task of working with the sector to secure sustainable improvements in its competitiveness.
a recent report into the likely impact on Victoria if Holden and toyota were to close
their local automotive manufacturing operations by 2018 paints a bleak picture, suggesting a potential loss of 30,000 jobs and a 1.4 per cent smaller state economy.
With so much at stake, VeCCi has urged policy-makers to work constructively with the sector to identify actions that will help strengthen its long-term future as it faces the ongoing challenges of a high australian dollar, high fuel prices and strong competition from low-cost producers.
the new Federal Government’s rejection of the previous government’s proposed higher fringe benefits on cars is positive and will help restore certainty within the sector and its allied industries.
also positive is the recently announced Productivity Commission inquiry into the automotive industry, which will focus on examining the potential to re-target rather than reduce the overall level of assistance provided to the sector.
Government urged to reverse apprenticeship incentive cuts VeCCi urges the Federal Government to secure australia’s skills base by reversing labor’s decision to cut $240 million in apprenticeship incentives for employers. Combined with the sizeable wage rises for apprentices recently determined by the Fair Work Commission, the incentive cuts will severely restrict the ability of business to provide much-needed employment opportunities in some very important areas of the economy.
as revealed in labor’s ‘mini budget’ in august, incentives have been abolished for employers of existing workers who undertake a so-called ‘non-priority’ qualification. they will no longer receive
the $3000 incentive for full-time workers or $1500 for part-time workers, unless the qualifications lead to occupations on the national Skills needs list or in the aged, child or disability care sectors, or if the employees are enrolled nurses.
the scrapping of incentives will be felt across all industry sectors, but particularly important ones like manufacturing, retail, agriculture, building and construction and hospitality. even priority sectors such as health and childcare will be impacted in some ways.
to secure job opportunities, it is essential that the Coalition seriously considers reinstating the abolished employer
incentives. the effect of the recent changes, which come on top of earlier cuts to incentives in the past two years, will be a saving of about $240 million over four years. VeCCi is concerned that this short-term, short-sighted budgetary measure of the previous government could have long-term detrimental impacts. at a time of increasing youth unemployment when growing australia’s competitiveness and productivity should be paramount, VeCCi strongly encourages the Coalition Government to take action and reverse this decision.
News
news
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from the heAdlInesnews
to stay up-to-date with VeCCi in the media, find the latest policy and advocacy news and browse our extensive photo gallery, visit VeCCi’s Facebook page and click ‘like’. new albums include photos from VeCCi’s September Women in business event with magazine legend nene King, and the VeCCi-Pitcher Partners Grand Final lunch.
www. facebook.com/ veccinews
VeCCi’s linkedin page is a key source of information on our business-building products and services, including briefings, workshops, courses, networking opportunities and consultancy. Keen to join us at VeCCi? our linkedin page also features VeCCi’s latest career opportunities.
www. linkedin.com/ company/vecci
the Vecci BloG
For highlights from the latest VeCCi-bank of Melbourne Survey of business trends and Prospects, visit the VeCCi blog. in an opinion piece recently published in the Herald Sun, we argue why now is the time for the new Federal Government to cement the stronger business sentiment and press on with delivering its pro-business, pre-election commitments.
www.vecci.org.au/ blog
Follow @VeCCinews on twitter and enjoy our live coverage of VeCCi events, including commentary and tips from leading australian entrepreneurs and business experts. recent coverage includes the VeCCi-Pitcher Partners Grand Final lunch with aFl veteran barry Hall, richmond coach damien Hardwick and St Kilda Captain nick riewoldt, as well as snapshots from VeCCi’s 2013 Victoria Summit and Fast Forward networking event.
www. twitter.com/ veccinews
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The VECCI websitelooking to sharpen up your skills or train your team members? the trainings and briefings pages at vecci.org.au have been redesigned, making your search for the right qualifications, short courses and information sessions easier than ever before.
Search by keyword, view every available course on a single web page and filter the results by type (for example, qualification, short course, briefing or webinar) and category (such as leadership and Management or business, Finance and Productivity). users can also view courses by region on an interactive map and register their interest in potential future training opportunities.
in other website news, we’re increasing the number of webinars we run to make VeCCi’s information more accessible to more people, no matter where they’re located.
the webinars are short, 45 to 60 minute sessions run at convenient times (usually between 12 and 1pm), allowing people to watch while they work.
VeCCi’s team of sustainability consultants has just completed a series of free webinars about lighting technology. For those who missed out, additional webinars on this topic are scheduled to begin in January. users can register for the webinars for free by visiting VeCCi’s new training page.
vECCI onlinemake the most of your membership by visiting vecci.org.au
from registering for VECCI events and training to accessing our library of more than 300 business tools and templates, the VECCI website is an employer’s one-stop shop. Constantly changing, the site is an information hub that helps our members do business better with workplace relations assistance, international trade advice, training course listings, apprenticeship help, networking event details and human resources support all in one place.
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VeCCI onlIneVeCCI onlIne
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Grossi restaurants include Cbd-based Grossi Florentino, ombra Salumi bar and Merchant osteria Veneta, as well as Mirka at tolarno in St Kilda and the bangkok-based Grossi trattoria & Wine bar.
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to join VeCCI or to learn which membership choice is right for you, please visit our membership store at www.vecci.org.au/join-now or phone 03 8662 5333.
melbourne chamber of commerce members:Stride Sports Management Pty ltdSerco asia PacificKPMGuniversity of Melbourneaustralian Catholic university (aCu)boeing aerostructures australia Pty ltdequipsuper Pty ltddesignworksroyal automobile Club of Victoria (raCV) ltdCityWide Service Solutions Pty ltdValcorp Holdings Pty ltdVicSuper---------------------------------------------------brimbank City CouncilCorangamite Shire Councilnorthern Grampians Shire CouncilCrowe Horwathbright breweryo2 MediaCity to Surf Solar Plus+Walker Sign CentreFaggs Mitre 10active display Groupballande GroupFagan bakery Service Pty ltd
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VeCCI’s success over 160 years is built on consistently providing leadership, information, representation and networking opportunities to Victorian business.VeCCi is the peak body for businesses in Victoria, informing and servicing more than 15,000 members, customers and clients across the state. independent and non-government, VeCCi makes its members more successful by fighting for their interests and delivering products and services for business growth, assurance and excellence.
VeCCi welcomes the new members who joined us in the third quarter of 2013:
Welcome new members
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welCome to VeCCI
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welCome to VeCCI
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Lower payroll tax, a stronger red tape reduction target and a new food innovation hub to fast-track the development of food products for Asia were among the ideas to secure our state’s competitive future canvassed at VECCI’s 2013 Victoria Summit.
More than 35 recommendations in the categories of Competitive Victoria, Smart Victoria, international Victoria and liveable Victoria were presented and discussed at the event, held at Victorian Parliament House on thursday 10 october. the recommendations and input from Summit attendees will directly influence VeCCi’s advocacy agenda in the lead-up to the 2014 state election.
the Summit also provided an opportunity for representatives from both the State Government and opposition to address Victoria’s business community, with the Minister for innovation, Services and Small business, the Hon louise asher MP, releasing the Government’s Small business Statement, which included a new export voucher program for small business. this program mirrors one of the Summit recommendations – the need for an ‘asia-ready’ voucher program to help businesses improve their export capabilities.
the recommendations were drawn from consultations with VeCCi’s broad network of members and stakeholders in the lead-up to the Summit, with 80 participants engaging in pre-event workshops. the following is a snapshot of some of these policy suggestions, broken into theme areas.
Competitive Victoria ■ Cut the payroll tax rate to 4.70 per cent from 1 July 2015.
■ in the absence of payroll tax rate relief, raise the payroll tax threshold from $550,000 to $800,000.
■ Commit to a zero net increase in regulatory requirements by 2018.
■ examine the potential for further government borrowing to fund investment in productivity-enhancing infrastructure.
■ undertake a Victorian Competition and efficiency Commission (VCeC) inquiry into public sector productivity.
international Victoria ■ Fund the expansion of the existing exhibition space in the
Melbourne Convention and exhibition Centre, ensuring project completion by no later than 2017.
■ Provide strategic funding to attract more business events and conferences aligned to Victoria’s priority sectors (medicine, science, technology, engineering and education).
■ Protect the curfew-free status of our airports by safeguarding them from competing development and formally recognise the significance of ‘green wedges’ in planning strategies.
■ Conduct a Victorian Competition and efficiency Commission (VCeC) inquiry into the potential for increasing exports of Victoria’s healthcare services, particularly into asia.
■ introduce a full public transport concession entitlement for full-fee paying international students.
smart Victoria ■ offer business a one-year ‘holiday’ from payroll tax for hiring young
people.
■ introduce a young entrepreneur exchange program to help new entrepreneurs learn from established entrepreneurs.
■ establish a low-cost business foundations short course, delivered by industry, for SMes.
■ ensure all MPs have participated in three to five structured half-day business visits within six months of the 2014 state election.
■ accelerate the existing Victorian Food Plan and establish a new food innovation hub to fast-track the development of quality, innovative food products for asia by linking agrifood research, processing, packaging and distribution.
liveable Victoria ■ review the multitude of agencies responsible for the yarra river
and charge a single entity with that responsibility.
■ develop a formal infrastructure plan for Melbourne’s interface suburbs that prioritises business, economic and social infrastructure needs.
■ release an integrated 2023 population plan, showing how the State Government will cope with an extra one million people over the next decade.
■ Shift our approach to urban planning to make Melbourne a more ‘mixed use’, compact city by using existing infrastructure more efficiently.
■ address outstanding regional infrastructure priorities such as the Mildura riverfront Precinct, the Shepparton bypass, the ballarat West employment Zone and the bendigo airport upgrade.
VeCCi thanks the more than 100 Summit attendees, as well as those members and stakeholders who took part in our pre-event consultation, for helping to identify and prioritise the reforms that will advance Victorian productivity and job creation into 2014 and beyond.
We were pleased by the breadth of voices heard through the Summit process, with participants including SMes, members of VeCCi’s Small business Council, the VeCCi board and executive Council, Melbourne Chamber of Commerce members, local government and government agency representatives, Victoria tourism industry Council and Victoria events industry Council members and regional businesses.
the Summit outcomes provide a strong basis for VeCCi’s work program into 2014, including VeCCi’s state budget submission and formal pre-election campaign.
steven Wojtkiw is VECCI’s Chief Economist and Executive Manager – policy.
VeCCi Chief executive Mark Stone
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victorian business sets agenda for 2014 state electionbY sTEVEn WOJTKIW
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As we head towards 2014, it is pleasing that business confidence is tracking in the right direction.
the latest VeCCi-bank of Melbourne Survey of business trends and Prospects shows that sentiment has strengthened dramatically on a surge of post-federal election optimism, with confidence reaching a three-year high. though challenging conditions remain, it is hoped this translates to improved investment, assisted by supportive government policy reform.
the advent of a new year brings new opportunities for business. With this in mind, for this edition of be we invited australia’s new Small business Minister, the Hon bruce billson, and opposition frontbencher the Hon Gary Gray, to reflect on where the opportunities lie in 2014. you can find their contributions on pages 14 and 16.
2014 is a state election year and, fittingly, in this edition the deputy Premier, the Hon Peter ryan, and deputy leader of the Victorian opposition, the Hon James Merlino, share their thoughts on the priorities for state development and how these will help secure Victoria’s competitiveness and prosperity.
We have also invited executives representing four diverse Melbourne Chamber of Commerce members – bank of Melbourne, Virgin australia, Colliers international and Sovereign Hill – to peer into the crystal ball and deliver their outlook for business and their industries in 2014. turn to page 22 for their insights.
to gain a regional perspective, regional representatives from VeCCi’s executive Council, Mildura’s anne Mansell, Gippsland’s Mark answerth, Geelong’s Peter Valentine and ballarat’s damien butler, contribute their thoughts on the sentiment and key developments in their communities. See pages 26-27 for their contributions.
a major regional development in 2014 will be the commencement of Federation university australia or ‘Feduni’, which from 1 January will provide higher education and taFe programs in ballarat, Gippsland and the Wimmera. to read more about australia’s newest regional university, see university of ballarat Vice-Chancellor Professor david battersby’s contribution on page 30.
Victoria’s export industry has been a solid contributor to the state’s economic activity in the past 12 months and prospects for the year ahead remain positive, particularly given the recent softening of the australian dollar. Given our strategic position in the asia-Pacific region, the focus on export and asian business opportunities will continue to grow in 2014. recognising this, VeCCi has recently embarked on two new initiatives to link Victorian businesses with Chinese industry and consumers – the Victoria-Jiangsu business Placement (VJbP) program and the trial VeCCi China e-commerce platform. learn more about these important projects on page 40.
unfortunately, not all developments in the new year are likely to be positive for business. new anti-bullying provisions allowing the Fair Work Commission to hear workplace bullying claims could cause headaches and confusion for employers when they commence on 1 January. it is essential that employers are aware of the changes and take steps to prepare; turn to page 32 to learn more.
if your new year’s resolution is to build a better business – be it more efficient, innovative or sustainable – see pages 34 to 39. VeCCi learning and development Consultant Peter Maplestone explains how to strengthen your leadership skills, our sustainability consultants share their top tips for a greener 2014 and business efficiency specialist brad Whitaker from VeCCi training partner Vative explains how you can start improving your processes and productivity.
We hope you enjoy this edition of be and look forward to helping you achieve your new year business goals.
2014: New year, new opportunities for business
Given our strategic position in the Asia-pacific region, the focus on export and Asian business opportunities will continue to grow in 2014.
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passionate voice in the Parliament, the Cabinet room and the treasury. that means being heard and considered at all levels of government as we move to arrest the decline in small business.
over the past six years, the number of employing small businesses has declined by 3000, while the number of jobs has decreased by 412,000 in the sector. this is something we are determined to reverse because we know we can do better.
Lower business costs, less unnecessary regulationWe’re looking at ways of cutting costs so small businesses can make new investments, create more jobs, take advantage of new opportunities, train their staff and be more competitive and productive. Small business is the engine-room of the economy and we’re determined to make it easier for the sector in the years ahead.
that’s why we are cutting red and green tape by $1 billion each year. For starters, we’re getting rid of the carbon tax and taking away the burden of small businesses having to administer superannuation and paid parental leave entitlements.
as for future regulation, we will only intervene when necessary. but when there is a strong case for regulatory action, we’ll see it through. new regulations will be considered through a small business lens, making sure they are appropriate and don’t create an unnecessary burden. and we’ll explain any new laws in plain english. this will free up some much-needed time for small businesses to be more productive, train staff, create jobs and grow.
Getting vital business information on the goWe’ll make information simpler and easier to access; for instance, by redeveloping the popular business.gov.au website to be more user-friendly for mobile devices. this will make it easier for you to find information about government programs, laws, grants and whatever else you might need when you’re on the go.
Easier to employ peopleWe want to make sure that the Fair Work laws are working for small business. that will include ensuring small business is represented on the Fair Work Commission, re-establishing the australian building and Construction Commission and making information available for employers on Fair Work matters in plain english. We will also make sure small business issues are considered in the Productivity Commission’s review of the Fair Work act.
Improved cash flowFrom 1 July 2014, australian Government agencies that don’t pay their small business bills within 30 days will have to pay interest too. and business won’t have to crawl through hoops to get it.
Better competition laws, fairer contracts and franchisingthe Government wants competition laws that keep a level playing field for both big and small business where competition is on merit not on muscle. to that end, we will soon progress an independent ‘root and branch’ review of australia’s competition laws. i encourage businesses of all sizes to contribute their ideas and experiences so we get an accurate picture of how the competition laws are working.
We’re also concerned that, just like consumers, small businesses don’t always have equal bargaining power when making contracts. We will work with the states and territories to extend the unfair contract provisions of the australian Consumer law to small businesses.
Talk to usWe are a government that wants to hear what small businesses have to say. that’s why we will seek out small business owners to listen to their stories and their ideas. that field evidence and practical insight is crucial in our efforts to support small business and the 4.8 million australians they employ.
So write to or email me with your ideas for the Government’s small business policy agenda or tell VeCCi. We’re open for small business – we’re here to act.
The Hon bruce billson Mp is Australia's Minister for small business.
Over the past six years, the number of employing small businesses has declined by 3000, while the number of jobs has decreased by 412,000 in the sector. This is something we are determined to reverse because we know we can do better.
It is a privilege to be given the job of making things better for Australia’s two million small business owners who put everything they have into running their businesses. The Coalition has a great deal of respect for those who often put their house on the line to start a small business and create opportunities for others.
that’s why we want to create the right conditions for those who want to grow, employ or export. and we have a big agenda for the years ahead – like opening up international markets, giving small businesses a strong voice and building a sensible broadband network. but the bottom line is we want to create opportunities for small businesses to be productive and successful in the way they choose.
A voice for small business
Small business will be at the heart of the Government’s policy agenda, so the opportunities will be many. With the merry-go-round of small business ministers behind us, small businesses finally have a solid,
Australia is open for small business in 2014
Greater rePreSentation at tHe Cabinet table, loWer CoStS and leSS red taPe are aMonG tHe oPPortunitieS For buSineSS tHe neW Federal GoVernMent Will adVanCe in tHe neW year.
bY THE HOn bRUCE bILLsOn
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with india and China likely to drive great growth in demand in the sector.
deloitte says three billion people in asia will join the middle class by 2030 and by 2050 the region will account for more than half the world’s financial assets.
in my view, australia has a fantastic economic base for future growth in these areas.
in September, i addressed a Chamber of Commerce and industry of Western australia (CCiWa) breakfast in Perth and referred to the once-in-a hundred-years investment surge in australia.
CCiWa was, of course, pursuing the chamber network campaign for small business – too big to ignore – a campaign that i strongly support.
i made the broad point that small business benefits from a vibrant national economy.
We can discuss many other issues – such as productivity and the national broadband network – which will clearly be significant issues for business in 2014. but, fundamentally, the entrepreneurial spirit that drives our two million small businesses requires a thriving and optimistic national economy.
it may be difficult for small business operators to appreciate this when they are working hard in their day-to-day operations but growth and jobs encourage small businesses to thrive.
in my brief tenure as resources and Small business Minister, i was aware of the continuing impact of the $268 billion worth of committed resources sector investment projects in australia. direct employment in australian resources operations now exceeds 260,000 people, around triple the 87,900 employed in the sector in February 2003.
We are an energy super power, a resources super power and we dominate global trade in several commodities. We are also one of only eight nations with a triple-a credit rating and a stable outlook from all three ratings agencies. our economy has outperformed every major advanced economy and should continue to perform more strongly than these economies over the next two years.
under labor, we saw record jobs growth – more than 960,000 new jobs since labor was first elected in 2007 – and an average unemployment rate of 5.1 per cent.
and it’s not all behind us, with australia ramping up production to meet global demand for lnG as the international energy agency predicts a 50 per cent rise in gas demand by 2035. With seven of the world’s 12 largest lnG projects now under construction in australia, production will approach 100 million tonnes by 2018.
the potential benefit of these projects to australia is thousands of permanent highly-skilled jobs and tens of billions of local activity.
So the prospects are bright.
i do hope that the growing public clamour for labor’s national broadband network is heard by the abbott Government. How ironic that supporters of fibre-to-the-premises broadband are raising money for an advertising campaign in Malcolm turnbull’s own electorate to try and convince the Communications Minister to keep labor’s nbn.
an online group raised more than $26,000 within two days to fund advertisements calling on the minister to “build the nbn that australia is asking for” and to reconsider the Coalition’s so-called “superior” fibre-to-the-premises network. a petition launched after the 7 September election has attracted more than 266,400 signatures.
labor’s nbn would transform small businesses by giving them the opportunity to reduce costs, increase efficiency and grow by:
■ reducing the need for a bricks and mortar presence, cutting rent and capital costs
■ allowing small businesses to expand their markets and customer base
■ helping them compete in a national or global marketplace by transacting online
■ offering more flexible work practices through greater scope for teleworking
■ allowing businesses more choice in their location, including in rural and regional australia.
the nbn is an opportunity for business in 2014.
The Hon gary gray AO Mp is Federal shadow Minister for Resources, shadow Minister for northern Australia and shadow special Minister of state. He was formerly the Minister for small business, Resources, Energy and Tourism in the previous Labor government.
Deloitte says three billion people in Asia will join the middle class by 2030 and by 2050 the region will account for more than half the world’s financial assets.
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WitH tHe eConoMiC GroWtH oF aSia PreSentinG unPreCedented buSineSS oPPortunitieS, auStralia’S ProSPeCtS are briGHt. a tHriVinG national eConoMy, inCludinG a Vibrant SMall buSineSS SeCtor, Will be CritiCal to our SuCCeSS.
bY THE HOn gARY gRAY
Only recently, Deloitte Access Economics suggested that five ‘super-growth’ industry sectors hold the key to Australia’s future prosperity.
in an october report entitled Positioning for Prosperity? Catching the next wave, the company identified agribusiness, gas, tourism, international education and wealth management as the five sectors.
these sectors will be worth an extra $250 billion to the national economy over the next 20 years, the forecasters said.
i must initially declare my interest in making this contribution. the deadline for be means i am writing it as the former Minister for resources, energy, tourism and Small business, and shortly after the election of bill Shorten as leader of the Parliamentary labor Party.
i note VeCCi’s membership base is diverse in representing not just retail and manufacturing but tourism, business services, hospitality and other emerging sectors.
Clearly, there will be strong interest in deloitte’s forecast that global population growth of 60 million per year will increase food demand, that tourism is set to double in size in the next 20 years (with asia’s expanding middle classes fuelling the growth) and that foreign students are already our fourth biggest export earner,
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International engagement and tradeinternational engagement is an important priority in the Government’s economic agenda. by supporting Victorian business to be more export-focused, the Government is positioning the state to capitalise on major economic and global transitions that are underway, including demand from the growing asian middle class, leading to new investment, higher productivity and jobs. For example, the Government has set a goal to double food and fibre production by 2030. We believe this goal will be achieved through the rapid increase in global demand for food and fibre.
Since december 2010, the Victorian Government trade Mission Program has delivered 64 trade missions across more than 30 countries, engaging more than 2350 Victorian businesses and generating more than $3.6 billion in projected new export sales. it is critical that we build on our international relationships established through trade missions to encourage investment in Victoria and open up new export markets.
State developmentthe Coalition Government has created the new portfolio of State development to drive the Government’s ‘open for business’ agenda to attract and facilitate major investment. as part of this portfolio, the Government has established a new office of State development, focused on identifying and attracting investment opportunities to Victoria and facilitating significant projects that require a whole-of-government approach.
the office of State development is a one-stop shop for businesses in their dealings with government. it provides professional advice to international and local investors to streamline the process of establishing or expanding a business in Victoria and leverages an international network of Victorian Government business offices, as well as an active business engagement model delivered through our local offices.
Since december 2010, the Victorian Government has facilitated $6.9 billion in investment projects that are expected to generate almost 15,000 jobs.
a recent report by PricewaterhouseCoopers illustrated the benefits of the department of State development and business and innovation’s (dSdbi) recent investment facilitation activities. these activities include:
■ Giving advice on and coordinating a range of Victorian, Commonwealth and local government development approvals, such as statutory planning, environmental and occupational health and safety approvals.
■ identifying investment site options (greenfield or existing).
■ Giving advice on the provision and cost of access to infrastructure, including electricity, gas and water supply.
PwC estimated the Government’s investment facilitation activities generated total direct benefits of $98.97 million to investors and produced a direct benefit-to-cost ratio of almost 50 to 1 in the calendar years 2011 and 2012. businesses said 18 per cent of investments would not have occurred without this support, which represented capital investment to the Victorian economy of about $2.4 billion.
the office of State development will also work across government departments and agencies to ensure that projects of state significance are brought to market efficiently and in a coordinated way.
Cutting red tapethe Government is placing renewed focus on practical red tape reduction for business and industry. the recently-appointed red tape Commissioner is actively engaging with businesses and their representatives to identify red tape and regulatory problems for government attention and reform.
the Victorian Coalition Government has committed to cut red tape by 25 per cent. the red tape reduction Program is on track to deliver more than half a billion dollars of red tape savings to business, not-for-profit organisations, government service providers and individuals by reducing or removing unnecessary requirements and restrictions.
Growing regional and rural Victoriathe Coalition Government believes that when regional Victoria is growing, the whole state prospers. that’s why the Government is strongly investing in the regions to leverage greater industry investment, build infrastructure and create more jobs.
the $1 billion regional Growth Fund is strategically co-investing in rural and regional projects to drive investment, business innovation and jobs. Since it was established in 2011, the fund has provided more than $340 million to more than 1200 projects, leveraging around $1.5 billion in total investment.
encouraging long-term economic growth and prosperity in regional and rural Victoria will play an important part in the Government’s strategy to balance population growth and development across the state.
The Hon peter Ryan MLA is the Deputy premier of Victoria, Minister for state Development and Minister for Regional and Rural Development.
The Coalition Government believes that when regional Victoria is growing, the whole state prospers. That’s why the Government is strongly investing in the regions to leverage greater industry investment, build infrastructure and create more jobs.
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maintaining a strong economy through responsible economic management underpins Victoria’s future competitiveness and prosperity. Victoria’s robust economy and sound financial management send a strong message that it is a safe and secure place to invest and do business.
Victoria is the only australian state with a triple-a stable credit rating from both Standard and Poor’s and Moody’s ratings agencies. this saves the state about $700 million over the next four years, when compared with having a double-a rating, giving us more to spend on infrastructure and frontline services. We are also the only state
forecasting budget surpluses over the four-year forward estimates period; the 2013-14 surplus is $225 million, rising to more than $2.5 billion by 2016-17.
Strong budget outcomes mean we can deliver major infrastructure projects without accumulating unsustainable public debt. between 2010-11 and 2014-15, annual government infrastructure investment is expected to average $5.8 billion, compared with $3.4 billion under the previous labor government in the decade to 2009-10. this financial year, we are investing around $6.1 billion in a range of major infrastructure projects including the east West link, the regional rail link, which is generating more than 3400 jobs, and the $1.6 billion Port of Melbourne expansion.
our priorities to secure victoria’s competitiveness
a StronG eConoMy, international enGaGeMent, CuttinG red taPe and GroWinG reGional CoMMunitieS are CritiCal to enSurinG ViCtoria’S Future ProSPerity.
bY THE HOn pETER RYAn
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We are the country’s digital innovation hub and also its life-sciences centre, attracting 70 per cent of australian medical research grants.
and we are australia’s design state, exporting our architecture, planning and engineering – building the world. this, i hope, is just the start.
but there’s one thing that could still get in the way. Congestion. on our streets, in our cities and on our public transport system.
i don’t think we can ever underestimate the raw, human effect of a tediously long commute.
it costs a lot, and it takes up so many of our finite hours – time we could be spending with our kids, at our workplace or in training.
it’s strange. We talk so much about the productive capacity of our businesses, of our governments, of our agencies, but not about our transport system.
When was the last time a business owner thought of a road not just as a static piece of our geography, but as a measurable good or service, belonging to them and affecting their bottom line?
Congestion on our roads and pressure on our public transport system is the great ceiling on our economy and its productivity.
it demands our full attention and it demands a full solution – not just one gamble, on one road, for one constituency of people, in one part of one city.
that’s the biggest problem i have with denis napthine’s $8 billion tunnel for the inner city. Just how much it will cost everywhere else and everyone else – in money, in time and in opportunity.
We have one chance to fix congestion. We shouldn’t blow that chance by building one shiny showpiece of a road that will do so little and cost so much.
there are rapidly-growing communities crying out for the most basic pieces of infrastructure.
Some of these communities were a third of their size the last time they saw yellow vests and heavy equipment on their roads.
these are the people we are listening to while we are developing our alternative plan.
Victorian labor’s opposition to the $8 billion tunnel isn’t inner-city niMbyism (‘not in my backyard-ism’). it’s the opposite. it’s outer-suburb iMbyism.
it’s families saying, “i want a new road, an improved road, in my backyard. i want more trains, more stations, in my backyard”.
We should have a real discussion about congestion because it’s slow encroach will devastate Victorian productivity.
and what a farce it would be if we put in all our efforts as a community to turn around the jobs crisis, invest in world-class vocational education and find young people great jobs at the forefront of global innovation, and then they have to resign.
because they live in Mernda. and their workplace is in Hallam. and getting there takes up two hours, every single morning.
that’s something to think about.
The Hon James Merlino MLA is Deputy Leader of the Victorian Opposition.
Congestion on our roads and pressure on our public transport system is the great ceiling on our economy and its productivity.
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Calling it ‘the asian Century’ understates it. We need to make the most of it and we’ve got a lot of work to do.
a lot of that work is common economic sense. We have to get the state moving again – turn around the jobs crisis and make Victoria more competitive.
We have to modernise our traditional industries, support the emerging ones and cultivate those that don’t yet exist.
but i want to talk about two of the things that are too often forgotten about: education and congestion.
Victoria is a resilient economy, built on knowledge, hard work and innovation. So much of that starts and ends with education and skills. almost all of it, in fact.
Skills are the most vital investment a modern society can make. and it is an effort that governments must lead.
that’s why we were shocked when the State Government cut $1.2 billion from such a vital organ of our economy.
the Government’s taFe cuts do precisely the wrong thing at the wrong time.
they shut the door on skills and shut out a generation of young Victorians from vocational training – right at the moment when our economy needs them the most.
near my electorate of Monbulk, the biggest local training provider is Swinburne’s lilydale campus.
Well, it was. before it closed in July. it’s like a ghost town now – literally chained up at the gates.
What sort of message does that send to young people in the outer suburbs, or to men and women who want a new career? there’s no local facility for them now.
it reminds me of a quote: “unless you take education to where the people live, how can you hope for people to access educational opportunities?”
they aren’t my words. they are the words of Jeff Kennett’s Minister for education, Phil Honeywood, at the opening ceremony of Swinburne lilydale in 1997.
the skills deficit, the systematic weakening of vocational education, it hurts the economy from top to bottom, from east to West.
our challenge is not only to restore taFe, but to make it better than it ever was. to let it be known as a celebrated path to which a young man or woman can aspire. to make it the first point of call for workers in transitioning industries or the one-stop shop for men and women with a disability.
investing in skills will put Victoria on the international stage. and the foundations are already there to see.
eaSinG tHe PreSSure on our tranSPort SySteM and PrioritiSinG SKillS inVeStMent Will unloCK our State’S ProduCtiVity.
bY THE HOn JAMEs MERLInO
Investing in skills and transport – The keys to victorian productivity
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population growth, infrastructure projects and growth in the medical and education sectors will be key drivers in 2014.
Colliers InternationalJOHn MARAsCO, sTATE CHIEF ExECUTIVE – VICTORIA
the outlook for Victoria is bright, with strong indications of confidence from both government and the private sector set to come into play in the year ahead.
Population growth, infrastructure projects and growth in the medical and education sectors will be key drivers in 2014.
according to a recent deloitte report, Victoria is in pole position to benefit greatly from the next wave of prosperity to sweep the nation. Five “super-growth” sectors – gas, wealth management, agribusiness, tourism and international education – are said to be worth an extra $250 billion to the national economy over the next 20 years and hold the key to our country’s future prosperity.
Wealth management and international education in particular are two areas where we will see the most direct benefit to Melbourne, and both will have flow-on effects to commercial and residential property.
We are already seeing these flow-on effects on the ground. For example, most of the residential development sites sold in the Melbourne Cbd to date in 2013 have been sold to asian developers. this reflects the growing appetite for Victorian property and is proof of the confidence that investors and developers are placing in Melbourne as a growing city. indeed, many of them are aware of Melbourne as a property market through their dealings with our universities.
Victoria also has the best road freight networks in the country and the recent announcement of the east West link will cement our position as the logistics capital of the nation. in addition, $1.6 billion is set to be invested in upgrading the Port of Melbourne and $1 billion in Melbourne airport upgrades, including investment in a new t4 terminal, multi-level car park, widened roads, new baggage facilities and extra plane gates.
the release of the State Government’s new planning blueprint, Plan Melbourne, has generated further discussion around the future of our urban landscape and the property industry has welcomed the proposal to centralise planning decisions for significant areas. Melbourne’s three main industrial nodes – south, north and west – have all been earmarked as ‘state significant zones’ and will have more centralised planning controls.
an expanded central city, as discussed by the State Government, would bring with it opportunities for future commercial development, in particular Fishermen’s bend and e-Gate (a site at the West Melbourne rail yards). in Victoria, we are in the enviable position of having abundant Cbd fringe land for urban renewal; we are not a land-locked city like some others, so accommodating the ongoing expansion of our Cbd will come relatively naturally.
the outlook for the Victorian economy is brighter for 2014 than it had been during 2013. the combined forces of a high australian dollar, consumer caution, restricted government spending and a post-boom contraction in the home building sector all held the Victorian economy back for some 18 months. Political uncertainty at home and concerns about the
global economy also weighed on business confidence.
However the outlook for many of these areas has improved and should generate a lift in activity during 2014. the australian dollar is well down from its peaks of 2011-2013 where it sat above parity with the uS dollar for most of that period. a high australian dollar acts as a headwind for Victoria’s manufacturing, international education, tourism and dairy sectors. Further reductions in the australian dollar appear probable and would further assist the Victorian economy.
a combination of lower interest rates, reductions in debt levels, rising house prices and ongoing job growth (albeit soft) has seen consumer
confidence rise. each of these has the potential to flow into stronger retail spending and housing activity. it’s also pleasing to see that Victorian businesses have strengthened their balance sheets and are able to invest.
While government spending has been tight, considerable investment is occurring in the areas of health, rail and roads, especially with commitment now given to the east West link. this activity will support the Victorian economy in 2014.
business sentiment has picked up since the September federal election and is reflected in the latest VeCCi-bank of Melbourne Survey of business trends and Prospects. We expect the private sector to respond with an increase in capital spending over the next 12 months.
Without doubt there will be challenges as Victoria copes with the unfolding global economic environment. the bank of Melbourne stands ready to assist Victorian businesses as they face these challenges and as they grasp the opportunities provided by this great state.
Bank of melbourne sCOTT TAnnER, CHIEF ExECUTIVE
New year’s expectations: what lies ahead?As we prepare to embark on a new year, four melbourne Chamber of Commerce members from a diverse range of industries – banking, aviation, property and tourism – share their thoughts on what’s ahead for business, the economy and their sectors in 2014.
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2013 has been a difficult year for the australian aviation industry, with ongoing high fuel prices and aggressive competition against the backdrop of a weak economic environment.
looking ahead, 2014 will be another challenging year, with the cost of fuel likely to remain high and no major uptick in economic growth predicted. at
present, the iMF expects australia’s GdP to grow in 2014; however it recently revised its april estimate of 3.3 per cent down to 2.8 per cent.
being one of the most geographically dispersed populations in the world, reliable and affordable air services will continue to be crucial to australia’s economy in 2014. on average more than 57 million passengers travel domestically in australia every year, with the Melbourne to Sydney route being the fifth busiest route globally.
Competition from international airlines will remain strong, with carriers from the Middle east and asia likely to continue to increase flight capacity in and out of australia. Virgin australia has chosen to partner with four of the world’s best airlines – air new Zealand, delta, etihad and Singapore airlines – to provide australian customers with a comprehensive international network and good flight frequency, without needing to add further flights internationally.
While the australian dollar has now lowered from its recent levels, it is likely that in 2014 it will remain relatively high by historical standards. this, along with the fact that overseas economic conditions are likely to remain subdued in 2014, impacts on the levels of international tourism to australia. However, tourism from certain parts of asia and the Middle east is forecast to continue to grow strongly, with Chinese visitor arrivals to australia growing 15.6 per cent last year.
any additional declines in the australian dollar may help to stimulate domestic tourism and improve the country’s competitive position on exporting, which is in turn good for the aviation industry given travel is closely linked with economic health.
in order to stay relevant, airlines must continue to drive down operational costs and adopt an innovative approach to meet the evolving needs of customers. With technology as a key enabler, product and service innovations will reach all-time highs with customers reaping the benefits from these investments.
as competitive and economic factors place pressure on australian businesses, productivity will remain a key theme moving forward. the aviation industry will have to ensure it continues to improve efficiency and offer affordable airfares in order to cater to cost-focused businesses and consumers.
virgin AustraliaJUDITH CROMpTOn, CHIEF COMMERCIAL OFFICER
for Australians engaging in outbound travel, the sweet combination of competitive international airfares and an Australian dollar that makes everything purchased while away that much cheaper and more attractive, will continue to drive record numbers to overseas destinations.
the tourism sector of the australian economy will continue to labour under the constraints of a high australian dollar in domestic and inbound international markets in 2014. economic uncertainty in traditional Western markets won’t help, nor will any slowdown in China’s economy, but this latter scenario is becoming more unlikely.
For australians engaging in outbound travel, however, the sweet combination of competitive international airfares and an australian dollar that makes everything purchased while away that much cheaper and more attractive, will continue to drive record numbers to overseas destinations.
the new Federal Government will move to implement its new policies, including changes to how the tourism portfolio fits into Cabinet under senior minister andrew robb. it has started out on an encouraging note by announcing the Passenger Movement Charge (paid by travellers when they leave australia) will remain at its present level for the next three years.
the task of replacing the departing Managing director of tourism australia, andrew Mcevoy, will not be an easy one as he has been an excellent performer. Fortunately, he leaves ta in a very confident and upbeat phase of its strategic business cycle.
For Victoria, a State Government election beckons in november 2014. implementation of the recent Victorian Competition and efficiency Commission (VCeC) recommendations must be a priority for the regional tourism industry’s growth. Construction of the next stage of the Melbourne Convention and exhibition Centre is also vital to Melbourne retaining its supremacy in the competitive world of the meetings, incentives, conventions and exhibitions (MiCe) market. both the napthine Government and the state opposition will most likely go to the election supporting this key infrastructure project.
all things considered, it will probably be a ‘mixed bag’ year for tourism in 2014.
Sovereign hillJEREMY JOHnsOn, CHIEF ExECUTIVE
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Ballaratit has been a tough 12 months for businesses in this region. the long lead-up to the election did not help, with many investment decisions being held over. Sentiment seems to have changed since the election and is more positive for 2014.
However, the next few months are critical with many in the retail and construction industries treading water whilst waiting for the economy to turn. this region really needs some large infrastructure projects to give the economy a kick-start.
there are still tough conditions ahead as businesses are yet to see an economic uplift as the lag of weak global conditions continues to roll through the region. However, there is optimism that the next year will be more positive, based upon some stability returning to government and the potential for new capital projects to get off the ground.
the main projects that need continued government support to ignite the region are the fast tracking of the ballarat West employment zone project, including the freight hub and airport re-development, the Western Freeway duplication project to Stawell, regional rail project, Horsham bypass and the completion of the rail internet connectivity project.
Damien butler principal, butler Chartered Accountants
GippslandWith certainty about political stability at the federal level, the outlook is quite good. However it’s important that as we approach a state election next year that stability is also replicated at the state level. the challenge now is to convert the optimism into real prosperity and growth.
businesses in this region are feeling quite buoyant about 2014. the tourism sector is heading into its busiest period and the warmer weather is on the way. the retail sector still has a lot of challenges ahead with the increased usage of internet shopping. However, there are some great initiatives being developed by local chambers of commerce to curb the outflow of money from the region and boost business and employment locally. our building and manufacturing industries are experiencing some significant challenges but service-based businesses are performing well.
the latrobe Valley infrastructure and industry Fund (a $15 million State Government fund) is also assisting local business to expand and invest in further infrastructure, which creates real job security for the region.
there are some great developments all across Gippsland. as the region becomes increasingly known for its fantastic environment, the food production and processing opportunities, particularly for east Gippsland, continue to increase. Clean air, soil and water equals fantastic food for domestic and overseas markets.
We also see some really smart companies in Gippsland developing an export presence. Companies are exporting medical supplies, manufacturing machinery and dairy products.
our power industry now appears to have some certainty about the future, which will result in investment in its assets and create long-term viability for the industry and all Gippsland businesses that support it.
the formation of Federation university australia (the joining of the Monash university and university of ballarat) will be an added boost to educational opportunities.
We also have Gippsland businesses opening up in other regions of Victoria, building on the skills and knowledge base that they have acquired locally and replicating their success.
Mark Answerth Managing Director, CreditCollect, Traralgon
Geelongthe feeling about the road ahead for business and the economy in Geelong is positive, with a confidence for micro and small business, however, there is concern that it may be temporary. Major concern centres around the outcomes of Ford, alcoa, Shell and avalon. these are large manufacturing hubs with uncertain futures in terms of change, scale-down or closure. Future developments are not expected to be of the same magnitude, hence it will take a lot of smaller projects to replace one large enterprise.
businesses in the region appear positive about 2014, with a renewed confidence in the settling of government. there are also a large number of projects underway, with a lot more in the pipeline. Geelong is a great place to locate and do business. the establishment of the head office of the national disability insurance agency in Geelong in early 2014 will be a healthy start to the new year and we are sure it can enjoy the same success as the taC did when it came to town.
other projects underway include the development of the $750 million Keystone business Park located within armstrong Creek’s north east industrial Precinct, the $220 million duplication of the Princes Highway from the Geelong ring road in Waurn Ponds to Winchelsea, and multi-million dollar developments at local hospitals and deakin university’s Waurn Ponds campus.
peter Valentine Chief Executive Officer, geelong Taxi network
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Regional round-up:
The road ahead in 2014we invited regional representatives from VECCI’s Executive Council to report back on the end-of-year business sentiment in their communities, as well as key developments in the pipeline for 2014.
mildurathe Mildura region is a diverse, innovative and vibrant hub, situated in the north-west of Victoria. Known for its quality food and wine production, Mildura is a strong retail centre and can be easily reached by air and road. Generating around $3 billion each year in gross regional product, predominantly from primary industry, the region continues to produce growth of approximately 0.6 per cent per annum.
now in recovery after the ‘Millennium drought’ and the impact of the 2011 floods, the business climate in the region as we head towards 2014 is one of renewed confidence, albeit with a recognition of the challenges of the global economy. these include the effect of the australian dollar on export potential and the competition associated with online business.
development opportunities for the Mildura region over the next few years include new commercial-scale solar power projects, a $103 million investment in the modernisation of irrigation infrastructure (dependent on government approval), an $18 million revitalisation of the Mildura riverfront and growth in export demand for food and beverage products. these opportunities extend from the significant developments that have occurred in recent times, including a $6 million complete upgrade of Mildura airport, the inaugural Solar Systems power station and a new $60 million almond processing plant.
Anne Mansell Former Chief Executive Officer, Mildura Development Corporation
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The election of a new federal government coincided with a dramatic rise in business confidence in the September quarter, with widespread expectations of stronger economic conditions over the year ahead despite ongoing tough trading conditions.
the VeCCi-bank of Melbourne Survey of business trends and Prospects revealed that confidence in the outlook for the australian economy strengthened considerably in the quarter, with 40 per cent of respondents expecting stronger conditions in the national economy over the next 12 months. this is a considerable rise given that only 19 per cent of respondents held this view in the previous quarter. the latest survey showed that just 16 per cent of respondents expect further weakness nationally and that confidence in the Victorian economy has also improved markedly; 32 per cent of respondents expect stronger conditions ahead for the state.
Significantly, this renewed optimism stands in stark contrast with the current experience of Victorian businesses, as they reported another difficult trading quarter in September. Sales were down, selling prices continued to fall and declines in profitability remained widespread. the level of overtime declined, while employment was flat. With the exception of the education, health and community services sector, business performance was weaker across all surveyed sectors, with the building and construction industry experiencing a particularly challenging period.
While renewed longer-term confidence has emerged in the post-election period, it has not yet been sufficient to support further business investment. Survey respondents reported continued declines in investment in both plant and equipment and buildings and structures. expectations for the december quarter, however, are that selling prices, exports and profitability will begin to recover; should this recovery materialise and continue into early 2014 we may see an investment pick-up in the second half of 2014. at present, there still appears to be excess capacity in many businesses, with 50 per cent of
survey respondents reporting that they are not operating at a satisfactory level of capacity.
in stark contrast with recent surveys, regional respondents were particularly optimistic about prospects for both the national and state economies over the year ahead. they also experienced stronger sales, exports and selling prices than their metropolitan counterparts in the September quarter.
the positive shift in business sentiment is encouraging, despite the challenging conditions. it is clear that the indecision, policy inconsistency and uncertainty that marked the previous parliamentary period had a major effect on the confidence of Victorian businesses.
in the lead-up to the election, VeCCi promoted the issues identified by small business through the national chamber network campaign Small business–too big to ignore. these included the priority areas of cutting red tape, simplifying the tax system, making it easier to employ people and building better infrastructure.
What the business community needs now is action and follow-through from the Federal Government so it can get on with creating jobs and income. We are looking to the new government to focus its attention on building the confidence and capacity of the private sector through a whole-of-government reform agenda. there are five national business priorities: a stronger economy, raising productivity and competitiveness, accessing global markets, better functioning institutions and of course, support for small business. in particular, the Government must press on with delivering its pro-business pre-election commitments, including:
■ reducing red tape
■ reversing labor’s fringe benefits tax changes to motor vehicles
■ abolishing the carbon tax
■ delivering funding for infrastructure projects, such as the east West link and Great ocean road upgrade.
Katherine salih is VECCI’s Manager of business policy.
The positive shift in business sentiment is encouraging, despite the challenging conditions. It is clear that the indecision, policy inconsistency and uncertainty that marked the previous parliamentary period had a major effect on the confidence of Victorian businesses.
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Business confidence hits a three-year high with renewed optimism for 2014tHouGH tHe tradinG enVironMent reMainS CHallenGinG, PoSt-eleCtion oPtiMiSM HaS Fuelled a SHarP SPiKe in buSineSS ConFidenCe aS We looK toWardS a neW year.
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greater critical mass in its reach, course offerings, staffing, research capacity and industry relationships.
as well as marshalling local and community support, this merger and university name change also involved detailed due diligence and approval processes.
the two chancellors, their university councils and senior staff were pivotal. the federal and Victorian governments were intimately involved since they had to give formal approval.
the state parliament was required to pass a bill to effect the merger and name change. With the advent of the tertiary education Quality and Standards agency (teQSa), there was also a detailed process of gaining consent for the many material changes required to operate the newly-named university.
along the way it was expected that not everyone would embrace the change and, in anticipation of this, there was a myriad of consultative mechanisms activated. town hall gatherings were held, written submissions were requested, and staff, students and unions were consulted.
detailed work occurred with the name change for the university of ballarat. More than 30 options were considered, attracting more than 500 submissions and emails from staff, students and the community. there was active involvement of local media.
the watershed event for the merger and name change was the tabling in the Victorian parliament of the bill establishing Federation university australia. the bill passed through both the legislative assembly and the legislative Council unopposed and without amendment. the bill generated more than four hours of debate and it
is rare in this nation’s history that one university is accorded so much parliamentary attention.
Campus mergers and university name changes often take much longer to achieve but are always incredibly challenging, especially in times of great change in university policy and funding.
as one uK Vice-Chancellor recently noted, “there is a lot of nostalgia about the past and the way it was, without much appreciation of the funding constraints and the new policy environments under which universities have to operate and compete in a global environment”.
the evolution of Federation university australia as this nation’s newest regional university is an indicator that our universities are able to adapt and evolve and should be encouraged and funded to do so.
professor David battersby is Vice-Chancellor of the University of ballarat, soon to be Federation University Australia.
As well as marshalling local and community support, this merger and university name change also involved detailed due diligence and approval processes.
The opening of federation University Australia came one step closer in October with our official launch at the parliament of Victoria.
in the presence of Peter Hall, the Victorian Minister for Higher education, the launch featured many staff and students from the university of ballarat and Monash university’s Gippsland Campus, the two institutions that will constitute Feduni.
From 1 January, Federation university australia will provide leading higher education and taFe programs in ballarat, Gippsland and the Wimmera as an expanded, regionally-focussed university.
university name changes like ours are quite rare in australia but internationally it is a different story, which is probably not surprising given there are around 11,000 universities world-wide.
in Wales, there has been a drawn-out and tumultuous process involving its higher education institutions resulting from the break-up and reconfiguring of the university of Wales. in russia, significant university restructuring and mergers have been underway as national research universities are created.
and for more than a decade, a number of universities in england have merged and consolidated campus arrangements with varying levels of success.
the Manchester merger, which brought together Victoria university of Manchester and the university of Manchester institute of Science and technology in 2004, is hailed as one of the more successful initiatives. Public funding assistance in the form of £65 million did provide an incentive for success.
university name changes are more commonplace than mergers although just as fraught. So frequent are institution name changes in the united States that there is now a Wikipedia page keeping track of the changes.
inevitably, university name changes evoke discontent. the recent campaign in the uK to change the name of leeds Metropolitan university to leeds beckett university led to the “Save leeds Met uni – don't change the name” campaign, with more than 4000 supporters.
other universities have been more subtle in their repositioning around a name change. in Canada, the university of Western ontario rebranded as Western even though it retained its legal name. this has occurred in australia, with some universities dropping the word “technology” from their nomenclature and others, such as CQuniversity, making stylistic changes to their trading names.
in recent months, the university of ballarat has been going through both a merger and name change process not dissimilar to what occurred a decade ago with the merger of alice Springs Centralian College with the northern territory university to form Charles darwin university.
the name and new logo of Federation university australia acknowledge the bequest of those educational institutions that have come together in common purpose, partnership and collaboration.
the rationale for developing this expanded, regionally-focussed university in Victoria related primarily to lifting higher education participation rates and providing more tertiary education opportunities in regional communities across the state.
the enabler for this was the concept of a regional university with
New year marks the beginning of a new victorian university
auStralia’S neWeSt reGional uniVerSity, Federation uniVerSity auStralia, Will oPen itS doorS on 1 January, ProVidinG Greater tertiary eduCation oPPortunitieS in CoMMunitieS aCroSS ViCtoria.
bY pROFEssOR DAVID bATTERsbYProfessor david battersby, Professor robin Pollard, head of Monash university's Gippsland campus, student ellen Sabo and the Hon Peter Hall at the launch of Federation university australia.
Professor david battersby presents the Minister with a Fed uni top.
Minister Hall addresses the launch of Federation university australia.
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the new Coalition Government has said it will support the changes, on the proviso that a worker seeks assistance from an independent regulatory agency before going to the FWC, and as long as the laws also include the conduct of union officials towards workers and employers. We believe a better response would be to seek to delay the commencement of the new laws so that a superior solution can be developed.
it is vital that employers covered gain an understanding of the possible implications of a bullying claim. under the amended legislation, a worker who “reasonably believes” that he or she has been bullied at work will be able to apply to the FWC for an order to stop the bullying. a “worker” is a broader term than an “employee” and is defined as an
How could the changes affect your business? ■ the new laws invite third party involvement in your
operations through the scrutiny of your performance management, disciplinary procedures and investigation processes.
■ orders made could affect your operations and restrict your ability to manage your business. For example, by creating an obligation to monitor behaviour, provide information, support and training or review policies.
■ defending claims and/or participating in multiple investigations involves significant cost and time, not to mention the damage that could be done to your reputation.
How can you prepare for the changes?review your policies and procedures, including:
■ performance management
■ disciplinary procedure
■ grievance procedure
■ anti-bullying policy and company code of conduct
■ investigation procedures.
invest in your culture and train your people in:
• management,communicationandleadershipskills
• rights,obligationsandduties
• identifyingandmitigatingrisks
• howtorespondappropriatelytosituations
• defendingclaimsattheFWC.
individual who performs work in any capacity, including as a contractor, a subcontractor, an outworker, an apprentice, trainee, work experience student or volunteer.
a worker is bullied at work if an individual or group of individuals “repeatedly behaves unreasonably towards the worker, or a group of workers of which the worker is a member” and that behaviour creates a risk to health and safety. “unreasonable behaviour” is defined as behaviour that a “reasonable” person, having regard to the circumstances, may consider “unreasonable”. examples could include victimisation, humiliation, intimidation or threatening a worker. However “reasonable management action carried out in a reasonable manner” will not be considered to be bullying at work.
the FWC will be required to begin dealing with the worker’s application within 14 days. this could include the FWC conducting a conference, hearing or inquiry, requesting documents, records or reports, or referring the matter elsewhere for further action.
if it is satisfied that the worker has been bullied at work and there is a risk this will continue, the FWC may make “any order it considers appropriate” (except a financial compensation order) to stop this continuing.
Contact VECCIas can be seen, there are a number of new concepts and definitions that will become the subject of interpretation by the FWC. in the short term, the resulting uncertainty may be very disruptive for employers and if the rate of unfair dismissal and general protections claims being made is anything to go by, VeCCi can foresee bullying claims being lodged with the FWC growing in significant numbers.
VeCCi’s experienced team of workplace relations consultants is ready to assist and advocate on behalf of our members. our associated law firm, CCi lawyers, will be able to provide expert legal advice when issues of interpretation emerge. We also have a range of online tools and templates that can help you either prepare new or review existing policies and procedures. For assistance, contact VeCCi by phoning 03 8662 5222.
Richard Clancy is VECCI’s Executive Director of Industry policy and Workplace Relations.
The fwC will be required to begin dealing with the worker’s application within 14 days. This could include the fwC conducting a conference, hearing or inquiry, requesting documents, records or reports, or referring the matter elsewhere for further action.
neW anti-bullyinG ProViSionS Will taKe eFFeCt in January – HaS your buSineSS taKen StePS to PrePare?
bY RICHARD CLAnCY
from 1 January 2014, a worker in a “constitutionally covered business” who alleges they are being bullied at work will be able to apply to the fair work Commission (fwC) for an order to stop the bullying. Under this new regime, the fwC will have the extraordinarily wide power to make “any order it considers appropriate” to prevent a worker from being bullied, excluding a compensation payment. In light of this, employers covered by these new laws should take action now to ensure their businesses are ready and protected from an increased exposure to claims made against them by workers.
VeCCi opposed the new bullying provisions when they were introduced by the previous labor federal government through changes to the Fair Work act 2009 in June. VeCCi regards workplace bullying very seriously but we are concerned that the new system was not properly thought through and represents an opportunity lost in terms of a response. instead of delivering an integrated, national response to bullying, the changes have introduced new complexities because of the crossovers between state, federal, workplace health and safety and workplace relations laws. as such, there is the real prospect that, in addition to genuine claims, the new system will stimulate unmeritorious claims and ‘jurisdiction shopping’, tying up management time and resources without making meaningful improvements to workplace culture.
Australia’s new workplace bullying laws – what employers need to know
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Are costs eating into your profit margin or could your business benefit from increased cash flow? Could you provide a greater level of quality to your customers? perhaps your business is unable to provide products and services on time, and isn’t flexible enough to meet the changing needs of your customers and industry. If you want to build a better business in 2014 but aren’t sure where to start, consider these key initiatives to begin improving cost, quality and delivery.
Identify your opportunitiesSpend some time analysing your business to determine where improvement opportunities lie. tools to help you do this include customer surveys, staff morale/culture surveys, value stream mapping and lean business Health Check (a diagnostic tool to evaluate business units and their performance). Without an analysis of your business, it’s very difficult – if not impossible – to determine what needs to change. Make these opportunities visible in your workplace by displaying the results of your analysis for your staff members to see and discuss. analyse your ‘cash cows’; put your effort and energy into improving the processes, products and services that contribute to the majority of your revenue.
Focus on teamworkestablish a team-based approach to improvement initiatives. ensure there is open communication and encourage your team members on the positive changes they make. reward and recognise the achievements of the team. letting someone know that they did a great job goes a long way to improving morale and encouraging greater engagement and ownership from your employees. assign the leadership of improvement projects to team members who are motivated and demonstrate leadership potential.
Go for quick winsthis is sometimes termed “picking the low hanging fruit”. Focus on reducing or eliminating processes that don’t add any direct value to your customers’ product or service. Some examples of improvement initiatives might be getting your workplace more organised by using 5S (a five-step process to reduce waste and optimise productivity), reducing stock levels, improving safety, reducing errors using problem solving, introducing standardisation and changing the workplace layout for better flow of materials and information. all these improvements add up to reduce your costs, improve quality, achieve delivery and reduce lead times.
Create an encouraging environmentProvide encouragement to your team and establish an environment that highlights problems. Some businesses can be quick to blame when things go wrong. View these problems as opportunities for improvement. don’t allow problems to be ‘swept under the carpet’ or bubble away undetected. ask why it happened and what can be changed to prevent it happening again. einstein’s definition of insanity – “doing the same thing over and over again and expecting a different result” – rings true here. blaming employees will not improve anything; changing the process to prevent the problem will. it’s the system that’s broken, not the individual. ask ‘how can the system be changed to support the individual to be the best they can be?’
Make it countMany businesses make improvements without first understanding if that improvement is going to have a positive impact. businesses need to understand what is important to them. don’t make changes for change sake; make changes that have a positive effect on safety, cost, quality, delivery and future sales opportunities. Measure what is to change so that you can determine estimated returns on investment. Measure after the change to determine if the returns have been achieved.
Plan for the long-termtrack your key business performance indicators such as safety, cost, quality and delivery. Set targets for these indicators and develop a business plan for a one to five-year period with improvement initiatives to reach your targets. review these targets every six months for relevance as the business environment can change.
Keen to learn more about what you can do to ensure your business is future-ready and remains competitive? to help Victorian businesses in all industry sectors improve their processes and systems, increase productivity, minimise waste and ultimately increase profitability, VeCCi has partnered with Vative to deliver a wide range of nationally-recognised qualifications via the lean business improvement training program. For further information, visit www.vecci.org.au or phone 03 8662 5333.
brad Whitaker is a Vative Lean six-sigma business specialist.
Don’t make changes for change sake; make changes that have a positive effect on safety, cost, quality, delivery and future sales opportunities.
Encouraging efficiency and promoting productivity – building a healthier business in 2014
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we are facing an ever more demanding business environment. The two-speed economy means many businesses have and continue to face challenging economic conditions. we have endured political uncertainty at both the state and federal levels and must deal with increasingly complex legal and regulatory environments as employee demands change. On top of this, businesses need to contemplate making their operation more sustainable.
the combination of these pressures means that sometimes we feel we need to be ‘super human’ to survive and thrive as a leader today. However, this is not the case. Clarity of purpose and belief in yourself and your team will help you manage the challenge.
What follows is a look at some of the most important aspects of business leadership and some practical advice on how you can become a better leader in the new year ahead.
Define and distil your strategya good start is to consider what you want your business to achieve in the year ahead and how you will go about making this happen. although the importance of communicating your vision is something you will read about in every management or leadership text, many employees do not have a clear understanding of their organisation’s strategy or how their position contributes to it. it is therefore essential that your plan is unambiguous so that it can be effectively communicated to your team. distil your strategy to something that can be simply expressed in two or three minutes and never miss an opportunity to re-state it to your team members, colleagues and superiors.
Don’t get stuck in the daily detail – take time out to gain perspectiveestablishing the direction is only half the challenge. you must also ensure you have the energy for implementation. While you need to be across what’s happening in your business, it’s equally important not to get swept up in detail all the time. Make an appointment with yourself (put it in the diary!) to ensure you spend some time each week ‘standing on the balcony’. in other words, take time out and allow yourself to gain a different, overarching perspective. observe emerging patterns in your industry and think creatively about your job and business. if you don’t grant yourself time away from the daily action, you won’t spot important emerging trends.
Don’t stand in your team’s way let your team take responsibility for putting the plan into action. renowned uS management author Peter drucker once observed that “much of what we call management is simply making it difficult for people to do their jobs”. resist the urge to have everybody do it your way. instead, believe in your team’s ability to generate the solutions to the challenge you lay down. this doesn’t mean you leave everybody to their own devices, but rather you remain available to offer or provide support when necessary. you will find most people will rise to the occasion and relish the opportunity for more rewarding and challenging work. the biggest barrier to empowering people is usually the leader’s reluctance to let go of tasks and decisions they should delegate. learn to trust your people and the pay-off for you is a stronger, more adaptable team and freedom from direct supervision.
Set the example with a positive attitudeyour attitude is contagious so choose to take control of it. learn to think and act, ‘above the line’ and expect your team to do the same. 'above the line' thinking is all about maintaining a positive attitude, taking responsibility for successes and failures, and looking for solutions rather than problems. by taking an 'above the line' attitude and challenging 'below the line' thinking (problem-focused, laying blame and negative attitudes) as it occurs, you can have a dramatic impact on the culture and engagement of your team.
Maintain your life outside the officetake stock of what’s happening in your personal life as well. When things get hectic at work it can be easy to let things outside slip but it is important to stay engaged with your friends, family and community. this may at first seem paradoxical but it has been shown that people who are healthy and maintain a range of interests are more likely to be engaged at work. Healthy, engaged people are much more likely to be resilient and agile and this will equip you for another challenging year.
Consider the sort of leader you want to beimagine it is 12 months from today, and then imagine what you are saying, what you are doing and how you are acting. How does the picture differ from today? Step back and analyse what it is that is stopping you from doing those things now. ask yourself what you can do differently, how you can close the gap between where you are and where you want to be and then, most importantly, take action.
you can make 2014 a great year by establishing what you want to achieve personally, professionally and for your business, maintaining a positive outlook and having trust in your team’s ability to deliver.
peter Maplestone is a VECCI Learning and Development Consultant who delivers VECCI’s Diploma of Management and Diploma of business Administration, as well as a range of short courses on leadership and professional development.
Lessons in leadership: paving your path
to successiF beCoMinG a better leader iS at tHe toP oF your neW year’S aGenda, a Clear
StrateGy, PoSitiVe attitude and truSt in your teaM are ParaMount.
bY pETER MApLEsTOnE
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Top tips for a greener, leaner new yearIn today’s competitive marketplace, a commitment to sustainable practices can give your business an edge on several fronts. Importantly, prioritising energy efficiency and curbing resource use can cut your operating costs and help offset energy price volatility. Also, many customers are actively seeking out and choosing to support businesses with sustainable practices. On top of this, creating an environmentally-efficient workplace can boost team morale, promote innovation and enhance your business’ productivity.
to help you on the path to sustainability success in the new year, we invited VeCCi’s team of sustainability consultants and Philip Knight from VeCCi member ecovantage to each share their one top tip for businesses seeking to boost their green credentials – and their bottom line – in 2014.
John Griffiths VECCI Sustainability Consultantreview your electricity contracts. Many businesses are on electricity tariffs that are higher than competitive market rates and, as such, they may be paying thousands of dollars more for their electricity than they need to be. if you’re not sure if you’re on a competitive rate, phone VeCCi’s Carbon Compass helpline on 03 8662 5490, which is open and free to all Victorian SMes.
Michael Lambden VECCI Sustainability Consultantevaluate the energy efficiency of your heating and cooling system. the bulk of energy consumption in an office building comes from the fans in its heating, ventilation and cooling (HVaC) system, so look into variable speed drives, which can be installed and regulate the system based on demand. to ensure this is being done accurately, consider installing a building management system, which is a software platform to monitor and manage air flow. Speak with your air conditioner maintenance company to guarantee you get the right equipment for your HVaC
system. also, familiarise yourself with recommended temperature settings. For example, the most efficient temperature for your heating and cooling system is 24 degrees in summer and 19 degrees in winter.
Bob Fynan VECCI Sustainability ConsultantCheck what support is available to help your business review and reduce its energy consumption and waste generation. a number of funding and subsidy programs are currently available, including the Smarter resources, Smarter business program, which provides subsidies for businesses to undertake resource efficiency assessments and implement resource reduction activities. another, the energy Saver incentive scheme, provides discounts on energy efficient equipment such as led (light emitting diodes) lighting and high efficiency motors.
Philip Knight Ecovantage General manager – Operationsupgrade to efficient lighting. replacing fluorescent tubes, downlights, shop lighting and warehouse high bay lights with leds can generate energy savings of up to 89 per cent of current usage. Prices have tumbled thanks to the growth in the led market so this is a cost-effective opportunity and implementation can be completed by qualified electricians at a time to suit your business. led lighting can also last up to 15 times longer than inefficient lighting, vastly reducing maintenance costs on an annual basis. depending on operating hours, the payback period for replacing incandescent, halogen or fluorescent lighting with led lights can be as short as six months.
ecovantage is an accredited member of state-based energy efficiency schemes in Victoria, new South Wales and South australia. it has delivered energy efficiency solutions to tens of thousands of homeowners and more than 150 companies.
VECCI’s sustainability consultants provide tailored business support including sustainability assessments, environmental policy and strategy development, and grant and funding application expertise. Contact VECCI on 03 8662 5333 for more information.
If you’re looking for more free, practical tips on cutting costs by reducing energy waste, call VECCI’s Carbon Compass helpline on 03 8662 5490.
New Victorian workers’ compensation legislation will come into effect on 1 July 2014, consolidating and streamlining existing laws and making the system simpler for employers and employees to navigate.
the Workplace injury rehabilitation and Compensation bill 2013 combines two existing pieces of legislation, the accident Compensation act 1985 and the accident Compensation (WorkCover insurance) act 1993, providing a single gateway for claims. it has been described by the State Government as a “clean re-write” as it replaces legislation that is almost 30 years old and that has been subject to more than 100 amendments.
the new legislation, which passed the Victorian Parliament in november, will govern workers’ compensation insurance, the payment of employer premiums, rehabilitation for injured workers and compensation in relation to workplace injuries and deaths. it will not change the benefits available to injured workers and their families nor affect the way that employers’ premiums are calculated.
What are the benefits for employers of this new legislation? ■ it contains visual aids in the form of flow chart diagrams to help
readers understand how complex claims processes work.
■ Clarifying amendments have been made, modernising the style and language of outdated provisions and removing ambiguities, making it easier to understand your obligations.
■ it offers a new right for employers to have their WorkCover premiums independently reviewed by the Victorian Civil and administrative tribunal (VCat), a cost-effective mechanism, if they are dissatisfied with the outcome. this complements the existing right employers have to seek a Supreme Court review of the Victorian WorkCover authority’s decision.
■ it will facilitate the registration of employers.
VeCCi will provide its members and other interested parties with a series of briefings on the new legislation in the first quarter of 2014. For further information, please contact VeCCi by phoning 03 8662 5333.
phil Lovelock is VECCI’s senior OHs Consultant and policy Adviser.
Workers’ compensation changes aheadbY pHIL LOVELOCK
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VECCI is playing a leading role in connecting Victorian businesses with opportunities in China through two important new initiatives – an innovative online export trial and a host program that will help forge long-term business alliances.
the VeCCi China e-commerce platform website, currently in its trial phase, is designed to facilitate the sending of processed Victorian food and beverages straight to the homes of Chinese consumers. if the trial is successful, the long-term aim will be to also deliver fresh fruit, vegetables and meats, with VeCCi seeking to engage with interested businesses to launch the initiative in January 2014.
the platform enables australian consumer goods manufacturers and exporters to sell their products online directly to Chinese consumers. it is a cost-effective and efficient option for market entry into China, with significant reach and exposure for Victorian brands. through an easy and safe model, VeCCi intends to facilitate the relationship between Victorian exporters and Chinese partners. From a distribution point of view, this eliminates a host of other processes.
in october, VeCCi joined Victorian Premier dr denis napthine on the State Government’s Super trade Mission to China, an important journey that established new relationships and strengthened existing ties with important trade and investment partners. during the trade mission, the Victoria-Jiangsu business Placement (VJbP) program was established, an innovative initiative that will offer Victorian businesses first-hand insights into Chinese business operations.
the VJbP program, supported by the Victorian Government, involves a partnership between VeCCi, the Jiangsu Federation of industry and Commerce and the Jiangsu economic and information technology Commission. it was developed to continue to strengthen business ties with Victoria’s sister-state of 34 years, Jiangsu Province, and will
enable selected representatives from Victorian companies to be hosted by a connected and relevant Chinese business for a three-week period. this will provide an opportunity to form business alliances and relationships, as well as gain insights into the operations of leading Chinese firms, their cultural practices, business intelligence and professional networks.
the placement program will create a database of Victorian firms working in Jiangsu, China, and enable Victorian businesses to capitalise on the province’s strong manufacturing sector. ten companies will be chosen to participate in a pilot, followed by 50 companies each year for the next two years.
For further information on the new initiatives, as well as expert advice on everything from the right documentation to market entry strategies, contact VECCI global by phoning 03 8662 5333.
The placement program will create a database of Victorian firms working in Jiangsu, China, and enable Victorian businesses to capitalise on the province’s strong manufacturing sector. Ten companies will be chosen to participate in a pilot, followed by 50 companies each year for the next two years.
globAlglobAl
vECCI forges new links with
Chinese business and consumers
VeCCi Chief executive Mark Stone (right) with Mr Gui dexiang, Vice Chairman of the Jiangsu Federation of Commerce and industry, during the State Government's Super trade Mission to China in october. an exhibit promoting Victorian educational opportunities to Chinese students.Victorian Premier dr denis napthine addresses an event during the Super trade Mission to China.
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VECCI members Optalert and StarNet Systems have been recognised as two of Victoria’s most pioneering and innovative exporters at the 2013 Governor of Victoria Export Awards.
Congratulations also go to VeCCi member aerosonde, which was commended in the Manufacturing category, and Melbourne Chamber of Commerce member tennis australia, a commendee in the business Services category.
the businesses were among 22 companies honoured at the prestigious awards, announced at a ceremony at Government House on Wednesday 9 october.
richmond-based optalert won the export award for innovation excellence for developing the world’s only scientifically-proven real-time operator alertness monitoring system, delivering a solution to the challenge of driver and operator fatigue.
the company’s technology delivers real-time data, accurately measuring an operator’s alertness level to detect the early onset of drowsiness. it has also been proven to positively change a user’s behaviour and approach to fatigue management.
optalert Ceo Scott Coles says that while there were a number of sectors that would benefit from this technology, the most obvious was the mining industry, with its 24-hour operations and highly-competitive, production-driven workforce.
“australia is a high-producing country in the mining sector, however latin america, africa and other Pacific nations provide far greater opportunity,” Scott says.
“For these reasons the company elected to pursue these markets first and set about targeting this industry and specific companies. the company has benefited greatly from focusing on the one niche area of fatigue detection and management.”
optalert, which made its first international sale in 2008, measures drowsiness through the patented Johns drowsiness Scale (JdS), named after the company’s founder, world-renowned sleep expert dr Murray Johns. the scale quantifies fatigue, just like blood alcohol concentration.
“the recognition we have gained through winning the innovation excellence award is a fantastic entry for us into further markets,” Scott says.
“We will continue our push into overseas markets and we are very excited about the significant opportunities ahead both domestically and abroad.”
Melbourne software development firm Starnet Systems won the information and Communication technology award for its total end-to-end telecommunications management solution that accommodates all the functions of a housing and conference operation for residential communities.
it has more than 450 customers worldwide, including acclaimed international educational institutions Cornell university, Stanford university, Harvard university and Harvard business School, Columbia university, dartmouth College, yale university and new york university. Starnet Systems’ customer base extends from australia and new Zealand to the united States, united Kingdom, Canada, Singapore, the Middle east and europe.
“after strong success in our home market of australia, we began exporting the solution to new Zealand in 1999 and north america in 2002,” says Managing director adele Knipe, who runs the business with her brother travis, the company’s Chief operating officer.
Starnet Systems was founded by their father, the late alan Knipe, and they would like the award to serve as a tribute to him and two other “outstanding” team members who have passed away, Sue ovalle and dane braddy.
“the award recognises the hard work and dedication of our team, developing and delivering a leading product to highly competitive global markets,” adele says.
“We hope to inspire other businesses to consider exporting their products and moving forward we will continue to fuel our growth with the passion that founded the company and product.”
Starnet Systems employs about 50 staff and, through its export success, it has also established Starrez inc, which has an office in denver in the uS with a team of more than 30. the company has a small but growing team in the uK.
Starnet Systems is also the market leader in providing secure telephone management systems to prisons throughout australia, possessing more than 60 per cent market share.
globAlglobAl
members honoured for export excellence
Starnet Systems business development Manager Con Caccamo at the Governor of Victoria export awards Ceremony
optalert Ceo Scott Coles with Governor of Victoria the Hon alex Chernov.Starnet Systems Managing director adele Knipe (centre) with Minister for employment and trade the Hon louise asher and the Governor.
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The objective of economic reform must be the creation of a better society and stronger nation with living standards at least as high as those that our generation inherited. Economic reform creates jobs and social dividends. A successful economy with structural strength to withstand global shocks is the underpinning of healthy communities.
the eConomythe eConomy
the objective of economic reform must be the creation of a better society and stronger nation with living standards at least as high as those that our generation inherited. economic reform creates jobs and social dividends. a successful economy with structural strength to withstand global shocks is the underpinning of healthy communities.
in the short term, reform involves change and, in some instances, difficult transitions and some winners and losers. thus, the reform effort of the next decade needs to be accompanied by political and business leadership that makes out the case to the broader community. unless a critical mass of community support exists for reforms, they are capable of being unwound, with the consequent set-back to achieving their goals.
Raising productivity increasing productivity and competitiveness is the way the Government will be able to create new national wealth and restore the health of Commonwealth finances. removing anti-competitive taxes, such as the carbon tax, is an essential start but more is needed on tax reform. redirecting spending to investment in long-term economic infrastructure is another necessary step; so too support for research and innovation, lifting workforce participation and minimising welfare dependency. added to this agenda is the critical task of changing our
workplace regulation so that it supports, not hinders, employment and economic activity. Changes to the Fair Work act and some of the decisions of the Fair Work Commission are urgently needed and not all of these should wait for a Productivity Commission review, which can take many years.
Global marketsour domestic economy is too small for many businesses to survive unless they are globally focused and competitive. the Government needs to seriously commit to deep engagement in global supply chains and develop an appropriate program to help business engage in them. aCCi and VeCCi, with our unparalleled international business network, are willing partners in this work.
Better institutionsthe expanding number of government institutions and agencies, and the depth at which they regulate, is becoming a real problem. While each has a different brief, they are all individually and collectively accountable as they form the system of governance that regulates private activity and private enterprise. instead of being the cash-cow or the vehicle for government redistribution, respect for the private sector must become the operating principle of government institutions. in the parliament, in the public service and in agencies and tribunals, steps must be taken to actively source and place persons with private sector experience in decision-making roles.
Most government institutions either spend or regulate. the growth of regulation and the weight of existing regulation is an endemic problem across modern economies, including here in australia. Many regulations are formulated without consideration of whether the intent could be met in other, more cost-effective, ways. the abbott Government must urgently and methodically work to deliver on its promise to reduce the red tape and compliance burden on business by at least one billion dollars per year.
Continued next page.
What business needs from the new Federal Government
buildinG a StronGer eConoMy tHrouGH StruCtural PoliCy reForM Will alloW tHe Federal GoVernMent to Pay auStralia’S billS WitHout oVertaxinG PriVate enterPriSe.
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when the political cycle changes the national government, new opportunities arise.
the key to unlocking our potential is a strong private sector. directly, private enterprise sustains jobs and living standards for almost 10 million australians who work as employees or contractors, as well as their families. indirectly, wealth created by the private sector funds taxes that finance the wellbeing of millions more australians on social services and pensions.
understanding these principles and governing according to them is aCCi’s expectation of the abbott Government. new wealth must be created because living standards cannot be sustained from an already debt-laden public purse. the abbott Government has not just inherited debt but also billion dollar spending obligations locked-in for the next 10 years by the previous government and its minority parliament, including disability Care and Gonski school education reforms. these were legislated but not funded.
Paying the nation’s bills while at the same time not taxing private businesses or individuals too heavily is the high-wire act the abbott Government will need to perform. this isn’t an insurmountable problem. the key is ending the preoccupation with redistribution of wealth and instead focusing on the creation of new wealth. the way to
do that is to create a bigger and stronger economy.
the business community, and aCCi and VeCCi in particular, took decisive steps before the 2013 election to set out a blueprint, Getting on with business. it contains 100 recommendations under the headings of five goals:
1. a stronger economy
2. raising productivity and competitiveness
3. accessing global markets
4. better functioning institutions
5. Supporting small business.
Economic reformaCCi’s reform agenda is a plan to allow the hundreds of thousands of private businesses to flourish and prosper. in many different ways government can support a stronger economy, with consistent decisions, big and small, across government all directed to this goal. there is no single ‘big bang’ approach but structural reform to regulatory, tax, spending, workplace and infrastructure policies is certainly needed.
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Planning strategy a stepping stone to investment and job creation
Victoria’s new plan melbourne strategy sets out the State Government’s long-term vision for the city and seeks to address infrastructure, housing, employment and transport challenges through an integrated approach to planning and development.
the plan is extensive, with many of the actions outlined being strategic, investigative or technical in nature. a Metropolitan Planning authority will be established to oversee the implementation of Plan Melbourne and it will prepare an annual statement of progress for the Minister for Planning to table in Parliament.
While focused on Melbourne, the plan also sets out the important role that Victoria’s regions will play in absorbing our future population growth, the challenges they will face and how these can be addressed.
there are a number of actions identified in the plan that are of interest to the broader business community, including confirming a preferred site for an airport in Melbourne’s south-east, planning for future industrial and commercial land supply, and working to attract population growth into regional areas.
below are further examples of actions set out in the plan, broken into theme areas.
Business and investment ■ expand the central city to ensure supply of well-located land for
commercial and residential development.
■ Support employment growth in six identified ‘national employment Clusters’ – existing clusters at Parkville, Monash and dandenong South and emerging clusters at la trobe, east Werribee and Sunshine.
■ implement a clear framework for consideration of unsolicited private sector proposals for investment.
Land use and planning ■ establish a permanent metropolitan growth boundary.
■ identify priority urban renewal sites and commence structure planning for underused industrial land near train stations, existing rail corridors and the wider transport network.
■ Work with local governments to rezone private land in precincts around railway stations and train corridors that have capacity for additional residential and mixed-use development.
Liveability ■ Publish a liveability index and map for Melbourne, to be updated
annually.
■ Prepare a metropolitan open space strategy to improve the provision and protection of open space.
■ Prepare updated ‘Victoria in Future’ population and housing projections.
Growth industries ■ Prepare and implement planning provisions to better identify and
protect strategically significant agricultural land.
■ establish streamlined decision-making on applications for major private hospitals and health providers in identified health precincts.
■ establish models for multi-storey education and lifelong learning campuses, and health and arts precincts.
Regional development ■ identify the long-term economic freight and logistics opportunities
relating to avalon airport in the area between Geelong and Werribee.
■ Work with local government to increase the supply of land for housing and attract population growth out of Melbourne, and identify significant employment precincts in regional cities.
■ Continue to deliver road and rail upgrades between Melbourne, outer suburban areas and regional cities.
the plan also incorporates the completion of the east West link and the Melbourne Metro rail project, commencement of the construction of rail links to rowville, Melbourne airport and doncaster, upgraded tram routes and the delivery of 50 new trams, improved on-road priority for buses and the acceleration of the removal of level crossings.
VeCCi welcomes the long-term nature of the plan. We are great supporters of achieving more integrated city, infrastructure, employment and transport planning. all these elements are vital to ensuring our state remains productive, competitive and liveable, long into the future. the plan must now be appropriately implemented and we look forward to the new Metropolitan Planning authority acting decisively to achieve these objectives.
Katherine salih is VECCI’s Manager of business policy.
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InfrAstruCturethe eConomy
The way government goes about its work can support confidence. If decisions are made in an orderly way, after reasonable consultation, and implemented competently then the signal to the private sector is one of certainty and consistency, which in turn breeds confidence and investment.
Supporting small businessunless small and medium business people succeed, the economy won’t get stronger. Generating half of the nation’s economic output and employing seven million people, the two million-strong small business community may be diverse and independently-minded, but collectively it cannot be ignored. this was the message of the very successful 2013 pre-election campaign, Small business–too big to ignore, run by aCCi in conjunction with VeCCi and other state chambers from around the country. the campaign was only 150 days old by election day yet it attracted 110,000 supporting voices, an extraordinary figure that illustrated the pent-up frustration amongst business people and their communities. While a strong economy is key to small business success, simply relying on a trickle-down effect to restore small business confidence is not sufficient. thus, policy measures that deliver a better business environment are vital, including ‘the biG 4 you Can’t ignore’ policy priorities identified through the campaign: cutting red tape, simplifying the tax system, making it easier to employ people and building better infrastructure.
Orderly governmentthe way government goes about its work can support confidence. if decisions are made in an orderly way, after reasonable consultation, and implemented competently then the signal to the private sector is one of certainty and consistency, which in turn breeds confidence and investment. Ministers don’t need to be publicity machines; they need to be competent decision-makers who see the big picture. in its early months the abbott Government has shown a willingness to be different from the chaotic period of minority government and leadership instability that preceded it. that’s a good start, but maintaining this approach is hard, especially when political circumstances become less favourable. better government doesn’t just happen with a crop of new politicians or even good intentions. Good government is head down, bottom up, long-term planning, with a few unpopular decisions thrown in.
A final thank youMany readers will be aware that after 12 years as a senior executive of aCCi, and Chief executive for the past six, i will be standing down in January 2014. as a resident of Melbourne, i have been close to VeCCi and the Victorian business community. i have greatly enjoyed the privilege of both leading and serving the chamber of commerce movement and the many industry bodies that form our vibrant collective business voice. thank you for your support. i encourage you to all get behind the fantastic work that aCCi and VeCCi do in your name on a daily basis.
peter Anderson is Chief Executive of the Australian Chamber of Commerce and Industry (ACCI).
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Tightly pressed in between the west Gate Bridge, the mouth of the yarra River and the edge of the ever-expanding melbourne CBD is the port of melbourne’s webb Dock precinct.
its rugged, industrial appearance reflects the Port’s proud and at times controversial history. With a collage of wharves, warehouses and ageing buildings, Webb dock has linked Melbourne with markets around the globe and created employment for generations of local families.
While the industrial façade of the 215-hectare site remains largely unchanged, suburbs that surround the docks have evolved from simple working class cottages and post-war public housing clusters to become prime waterfront residences and apartments. With this change, the traditional corner stores and pubs have also all but vanished, being replaced with fashionable restaurants and boardwalks that are bustling with people making the most of Melbourne’s ‘bayside lifestyle’.
dotted around the perimeter of Webb dock, small parcels of vacant land separate these evolving communities from the grey, aged timber and steel of the docks, creating a kind of visual ‘waterline’ like that found along the side of a ship.
this line, which marks the boundary between Webb dock’s commercial activities and the surrounding areas, is today a key feature of the $1.6 billion Port Capacity Project that will expand the Port’s trade and create Melbourne’s new ‘waterline’ linking Port Phillip bay, Westgate Park and the Cbd.
as well as design creation, significant project milestones achieved to date include seeking expressions of interest for three prescribed construction packages to deliver the ‘backbone infrastructure’ and facilitate the private sector development.
the initial site preparation package enabling the consolidation of earthworks started in March 2013, while the main landside or ‘roads and services’ works and the maritime package incorporating dock deepening and wharf construction are to be delivered via a design and construct arrangement in coming months.
Expanding Australia’s economic gatewaythe Port of Melbourne is a key strategic economic asset for Victoria and regular and reliable shipping services are critical for business success as Melbourne’s population continues to grow.
With container movements in and out of the Port of Melbourne growing in excess of six per cent every year and predicted to double over the next 10 to 12 years, the expansion of port capacity is a significant project for Victoria and for the future of the Port as australia’s premier trading gateway. it delivers certainty, capacity and assurance that we will be able to meet Victoria’s trade demand for years to come.
the centrepiece of the Port Capacity Project is the redevelopment of Webb dock and the construction of a new international container terminal capable of handling at least one million standard containers per annum.
the project also includes the consolidation of Victoria’s car and automotive trade at a new facility to be built at Webb dock West, Continued next page.
The centrepiece of the port Capacity project is the redevelopment of webb Dock and the construction of a new international container terminal capable of handling at least one million standard containers per annum.
InfrAstruCtureInfrAstruCture
Innovative infrastructure: meeting Victoria’s growing trade demand
tHe Port oF Melbourne’S $1.6 billion exPanSion iS a Vital ProJeCt For ViCtoria, WitH Container MoVeMentS tHrouGH tHe FreiGHt Hub exPeCted to double in tHe next 10 to 12 yearS.
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opposite the new container terminal, alongside a new integrated ‘on-port’ automotive pre-delivery inspection facility.
the redevelopment of Webb dock is being delivered using a competitive procurement process and a ‘next generation’ landlord model whereby the Port of Melbourne Corporation develops the ‘backbone’ infrastructure upfront and the Webb dock site recovers its capital investment though commercial rent, wharfage charges on goods crossing the docks and the provision of related services.
this approach is consistent with the Port of Melbourne Corporation’s overall commercial charter and in refining the delivery model for the project, the Corporation sought advice from industry and a range of specialist advisors.
the ‘next generation’ landlord model structures the commercial tenancy within a tiered suite of transaction documents, enabling the Corporation to manage and ‘incentivise’ the progression of the tenant’s superstructure fit out and terminal commissioning. a parallel operations agreement and fixed term lease is only granted to the tenant after the requirements of the bonded development agreement are fulfilled. this ‘operations agreement’ defines a range of direct and indirect performance metrics while also underwriting the trade guarantees established during the bidding process.
the ‘next generation’ landlord model being deployed at Webb dock adopts the benefits of a managed, positive, value-for-money outcome, underpinned by the security of staged checkpoints with respect to risk assurance.
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pre-tender design development and design risk is wholly transferred to the successful contractor as part of the contract execution, therefore buffering the state from secondary risk.
Advancing your workforce through Skills ConnectbY RAEWYnn bLACK
employers are training their new and existing employees for nationally-recognised vocational education qualifications ranging from Certificate to advanced diploma level. through the Skills Connect fund, they are training their apprentices and up-skilling and re-skilling their workforces in skill sets that have been developed by industry.
the Skills Connect fund is a one-stop shop for employers to train, up-skill, re-skill and develop their people through government co-funded grants. the one-stop shop approach enables employers to connect with a range of funding sources for their entire workforce through one application process.
Small, medium and large businesses, not-for-profits and charitable organisations are all benefiting from the fund to deliver personal and professional development that meets their workforce needs.
Funding sources through Skills Connect include:
■ the national workforce development fund this allows organisations to identify their current and future workforce development needs and apply for funding to support the training of workers in skills shortage areas.
■ the workplace english, language and literacy program this program delivers vocational training integrated with language, literacy and numeracy training in the workplace. the training is flexible, tailored to the needs of the workplace and based on industry-specific, nationally-endorsed training packages. it is designed to support increased productivity, communication and occupational health and safety, as well as improving job security and career prospects for employees.
■ australian apprenticeship mentoring Supporting the retention of apprentices and the completion of apprenticeships in occupations where there is a current or emerging skills gap, this program focuses on support for trainees facing barriers to participation.
■ accelerated australian apprenticeships this initiative helps peak industry bodies and large employers to develop partnerships that encourage and deliver high quality, competency-based progression in apprenticeships, leading to completed qualifications.
■ skills connect for mature age workers this program helps mature age workers (aged 50 and over) to gain qualifications that match their skills. through a skills assessment and, if needed, gap training, mature age workers can attain a nationally-recognised qualification, from Certificate iii to advanced diplomas.
the australian Chamber of Commerce and industry (aCCi) has recently launched an online workforce development tool, which you may want to consider using to assist with your funding application. this is available at http://acciworkforcedevelopment.com.au/workforce/public/login.
For further information on the Skills Connect fund, as well as case studies and the Skills Connect newsletter, visit www.vecci.org.au/business-solutions/other-services.
Raewynn black is VECCI’s Education and Training Adviser. she can provide employers with information on the skills Connect fund, the application process and the ACCI workforce development e-tool. Contact Raewynn by phoning 03 8662 5376 or emailing [email protected].
the maturity of this model provides confident benchmarking of competency and innovation in line with the project’s critical success criteria. the accompanying whole-of-life evaluation regime enables accurate monitoring of both the tenant’s performance and, importantly, the resultant economic multipliers. by working predictively, the Corporation can enact the early implementation of remedies if required, therefore negating the need for absolute measures such as conventional ‘step-in provisions’ which are, in the main, retrospective measures.
the appointment of the operators will be determined through competitive bidding, involving the detailed evaluation of proposals.
the early delivery of the necessary ‘backbone’ infrastructure, including new road connections to Melbourne’s arterial road network, enables the successful private sector bidders to expedite the commencement of their tenancies, therefore providing both an earlier gain in available trade capacity and the accelerated recovery of the Corporation’s capital investment. the $1.6 billion development is fully funded by the Port of Melbourne Corporation and the private sector tenants.
Delivery of ‘backbone’ infrastructurethe three works packages – site preparation earthworks, roads and services and maritime – will be progressively staged, enabling the ‘business of the port’ to continue at Webb dock.
obtaining optimal value for money and ensuring the transfer of risk from the state to private sector contractors is a priority of the procurement of construction services for the project.
the main landside or ‘roads and services’ works package is to be delivered via a design and construct, guaranteed maximum price regime, which novates the Corporation’s technical design contractor, aurecon Pty limited, into the delivery contract.
Pre-tender design development and design risk is wholly transferred to the successful contractor as part of the contract execution, therefore buffering the state from secondary risk.
the roads and services works are not overly complex, enabling the Corporation to deploy a value management regime during the design development phase of the contract. the smaller, initial site preparation package that commenced in March 2013 enabling the consolidation of earth works would have otherwise been required to be undertaken by the individual private sector operators.
on 28 november, bMd Constructions was announced as the project’s roads and services contractor. Key works will see the existing Webb dock entrance relocated and the construction of a new internal road on port land, which will join with two traffic light-controlled intersections linking directly to Melbourne’s M1 corridor, replacing existing roundabouts. these safer and more efficient connections will assist in reducing the number of heavy vehicles and trucks using residential streets, and are a critical part of creating efficient freight connections that are vital for local industry and Victoria’s exports.
the maritime works package facilitates the delivery of a new 920 metre-long wharf, dredging and the associated re-engineering of the existing Webb dock wharves, which were constructed during the 1950s and ‘60s. this will also be delivered through a design and construct arrangement under a fixed lump sum agreement. the maritime package is based on a reference design created by arup Pty limited, which will be retained by the Corporation to provide necessary technical advice and design verification.
With initial site preparation works approaching completion, the construction of new roads, protective buffers and the related ‘backbone’ infrastructure necessary for the expedited commissioning of the successful bidder’s terminal fit outs is scheduled to commence early in the new year.
stephen bradford is the Chief Executive Officer of the port of Melbourne Corporation. For more information about the port Capacity project, phone 1800 451 056 or email [email protected].
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The youth skills challenge for governmentWitH tHe loSS oF aPPrentiCeSHiP inCentiVeS For eMPloyerS, GoVernMent aCtion iS needed noW to Curb riSinG youtH uneMPloyMent.
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in financial terms, the four-year effect of this year’s changes will be a saving of about $240 million, while the full budget cycle reductions will be about $850 million for all of the policy changes over the two-year period. the abbott Government has said it will accept the reductions resulting from both the May and august budget announcements.
So what will be the impact for business? We have already seen the cumulative effect of these changes in training across all sectors. the most recent early trend data released by the national Centre for Vocational education research (nCVer) shows a 34,000 drop in non-trade commencements from March 2012 to June 2013. in the same period, trade apprenticeship commencements fell 12 per cent. this concerning trend is occurring at a time when employers are being urged to train existing staff to ensure australia is more competitive and provide more apprenticeships for young australians.
it is well documented that the cost of doing business in australia has increased continually in the past two years, with wage and other on-costs rising while selling prices and profitability have fallen. However, the latest VeCCi-bank of Melbourne Survey of business trends and Prospects reflects a strong improvement in business sentiment for 2014 since the federal election.
this positive sentiment will potentially be undermined by the loss of incentives, which will adversely affect employers and add to wage costs. the recent Fair Work Commission decision to increase weekly pay rates for first and second year apprentices by between $20 and $100 will further affect employers’ hiring intentions in 2014.
there are several worrying aspects to consider in terms of the impact on young people. australian bureau of Statistics (abS) data for June 2013 indicates a youth unemployment rate of 11.6 per cent. Several other reports paint an even worse picture. How young People are Faring, a report recently released by the Foundation for young australians, puts the unemployment rate for teenagers not in full-time education at 17.7 per cent. the october abS workforce participation data for young people aged 16-24 years is now at the lowest level recorded, even below that recorded during the early 1990s recession.
another significant finding, revealed in the CoaG reform Council’s october report education in australia 2012: Five years of Performance, is that while more young people are finishing year 12 and studying full-time after leaving school, the proportion of 17-24 year-olds with a full time job has fallen over the past five years.
the potential for youth unemployment to escalate over the next year is a real concern. europe has been grappling with high levels of general unemployment, as well as significantly higher youth unemployment rates, and in response to this the oeCd has endorsed an action plan focussing on education, training and labour regulations over the medium term to achieve the overall goal of ‘employability’. it is interesting to note that the oeCd plan will focus on labour market
measures such as providing adequate income support, as well as career guidance, relevant training and incentives for active job seeking.
the lessons should not be lost in the australian context. the release of the Future Focus report by the australian Workforce and Productivity agency (aWPa) earlier this year highlighted the importance of improving career development mechanisms. this includes coaching support for job seekers, as well as ensuring that training intervention for disadvantaged job seekers is flexible and links with job outcomes.
Participants at VeCCi’s 2013 Victoria Summit highlighted the need to do more to help young people access jobs at a time when positions remain vacant and employers report their struggles to attract suitably-trained workers. australia is one of the lowest spenders on labour market programs to assist unemployed job seekers and must be guided by overseas practices to address the entrenched issue of youth unemployment.
the Government must take note of the worsening position of young people and seriously consider action and policies that will provide financial support for employers, as well as provide improved support and training for all jobseekers. action is needed now and your feedback will assist VeCCi in taking these issues to policy-makers. to provide feedback or for further information, please email [email protected] or phone 03 8662 5338.
Andrew Rimington is VECCI’s senior Manager policy – Employment, Education & Training.
The newly-elected Abbott Government has a clear priority for a full budget review to achieve further savings across all government portfolio and program areas. however, the Government needs to tread carefully in the skills, education and training space unless it wants to see a dramatic blowout in youth unemployment.
the circumstances that could lead to this occurring stem from several factors. the previous rudd Government announced changes to apprenticeship incentives in the august 2013 mini-budget prior to the September election. these changes came on top of earlier cuts made over the past two years. these included cuts to Certificate ii level traineeship incentives in the 2011-12 budget and changes to existing worker incentives in the 2012-13 budget. in october 2012, the Gillard Government cut adult apprentice wage subsidies from $13,000 to just $4000 and part-time apprenticeship incentives were reduced from $4000 to a $1500 completion fee. the $4000 incentives for diploma and advanced diplomas to encourage the up-skilling of the workforce were also abolished, bringing the aggregate reduction in incentive funding in the past two years to about 25 per cent.
The Government must take note of the worsening position of young people and seriously consider action and policies that will provide financial support for employers, as well as provide improved support and training for all jobseekers
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explained by VeCCi’s richard Clancy on page 32, from 1 January 2014, a worker who alleges that they have been bullied at work will be able to apply to the Fair Work Commission (FWC) for an order to stop the bullying. because of this new jurisdiction, workplace consultation will become even more important if employers are to reduce the prospects of a visit to the FWC.
Safe Work australia has been engaged in the development of a proposed code of practice on preventing and responding to workplace bullying under a harmonised WHS regime. More recently it has been suggested that guidelines, as opposed to a code, may eventuate. Whatever the outcome, once finalised and released, this code or set of guidelines is likely to affect how the conduct of employers, whether covered by the oHS act or the WHS regime, is assessed with respect to allegations of bullying. one would expect both the FWC and WorkSafe Victoria to make use of whatever is adopted in carrying out their functions.
as noted in a separate code of practice, WHS Consultation, Cooperation and Co-ordination, issued under the WHS regime, consultation does not mean telling workers about health and safety decisions or actions after they have been taken. it requires that workers are:
■ made aware of health and safety matters as soon as possible
■ encouraged to ask questions about health and safety
■ encouraged to raise concerns and report problems
■ encouraged to make work health and safety suggestions
■ involved in the problem solving process
■ properly informed of the outcome of the consultation and decisions made.
While specifically relevant to the WHS regime, this code provides ideas on how employers might go about approaching their workforce in relation to other issues, such as flexible work arrangements and the accommodation of impairment or caring/family responsibilities.
the need for greater levels of consultation does not start and stop with workplace legislation; it also arises under court-made law. For a
number of years, there has been increased consideration by australian courts into the notion of an implied mutual duty of trust and confidence within the employer-employee relationship. the Federal Court recently established that there is such an implied term in australian employment contracts. While not addressing a failure to consult as such, this decision could have significant implications for employers if they are found to have breached this duty and greater consultation may be what is expected of employers for them to comply.
employers should be hoping that Father Christmas delivers a reversal of that decision on appeal to the High Court. in the meantime, they need to be cognisant of the potential obligations this implied duty may impose with respect to redeployment processes, bonus schemes and the like. Further, what will not be underestimated is the readiness of workers to assert their rights.
traditionally, awards and enterprise bargaining agreements have required a level of consultation between the employer and their workforce/the related union about redundancies, wages, hours of work and health and safety issues. take a peek at what will be required from 1 January 2014 in agreements with respect to changes to rosters and hours of work – more consultation.
Finally, remember the importance of responding to employees who are parents or carers, those who have to bear impairments or violence at home, or those who are aged over 55, when they wish to discuss work arrangements. Since 1 July 2013, the national employment Standards have provided a right for these employees to request flexible working arrangements and such a request may only be refused on reasonable business grounds.
like it or not, to comply with the law we have to encourage and support a two-way conversation with our employees and sooner rather than later on these matters.
sean Millard is the principal of CCI Lawyers, VECCI’s associated law firm. CCI Lawyers can provide legal advice on all manner of workplace relations claims and matters. For assistance, phone VECCI on 03 8662 5222 or CCI Lawyers on 03 8662 5210.
The need for greater levels of consultation does not start and stop with workplace legislation; it also arises under court-made law. for a number of years, there has been increased consideration by Australian courts into the notion of an implied mutual duty of trust and confidence within the employer-employee relationship. The federal Court recently established that there is such an implied term in Australian employment contracts.
Employers are now required by law to spend much more time talking with their employees about a growing list of issues. Long gone are the days of an employer being able to dictate how work is to be undertaken and on what terms.
recent changes to the regulation of flexible work arrangements and parental leave, as well as the commencement of the model national Work Health and Safety legislation (WHS regime) in 2012, have increased the need for many employers to discuss with their employees how and when work is to be carried out.
employers operating Victorian businesses will be well familiar with their obligations to maintain a safe workplace and work practices under the Victorian occupational Health and Safety act 2004. one of the key objectives of the act is to promote greater involvement and
co-operation between employers and employees on workplace health and safety issues. this extends to employers and employees exchanging information about risks, and measures to eliminate or reduce those risks, as well as employee representation when discussing health and safety matters.
under the national WHS regime, however, responsibility for occupational health and safety is now on all participants involved in conducting a business or undertaking. this change in focus emphasises the importance of consultation between those that come into contact with each other during the course of undertaking business.
the increasing incidence of employees making allegations of bullying provides a good example of why consultation with the workforce is required. For instance, in addition to explaining what might constitute bullying to employees, what should also be made very clear is the difference between bullying and reasonable management action. as
Employee consultation – why it’s now more critical than everbY sEAn MILLARD
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workPlACe relAtIonsworkPlACe relAtIons
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“our vision is to be the world’s best events destination, leading the way in food, technology and service. the venue sets the stage for several world-leading events that bring visitors in their thousands to Melbourne and MCeC.
“to receive this award two years in a row is a significant achievement and shows that our hard work is being recognised by our customers and visitors from all over the world.”
MCeC, which employs a team of approximately 500, including 180 full-time staff, generates an annual economic contribution of more than $250 million for Victoria as a result of the major events it hosts. MCeC, and business events generally, attract hundreds of thousands of people to the state to network, learn, exchange knowledge and be entertained.
business events contribute more than $1.2 billion to Victoria annually, with the economic impact driven by spending on accommodation and hospitality, as well as the millions of dollars worth of transactions conducted daily at exhibitions, meetings and events within the walls of MCeC.
2014 will be an exciting year for the venue, which has a busy and diverse calendar of events booked, from exhibitions, conventions and meetings to gala dinners, speech nights and concerts.
because of its unique venue capabilities, a major part of MCeC’s upcoming calendar will be hosting some of the world’s largest medical conferences. this begins in december 2013 with the 22nd World diabetes Congress, involving between 10,000 and 12,000 delegates,
and is followed by the World Congress of Cardiology in May (attracting 9000 delegates) and the international aidS Conference in July.
MCeC will continue to work closely with the State Government and the Melbourne Convention bureau (MCb) in 2014, especially throughout business events Week (beW), which showcases the value of business events during the asia-Pacific incentives & Meetings expo (aiMe). MCeC will host its second open Space event as part of beW, including a public plenary session and pop-up market installation on thursday 20 February.
Global spotlight on melbourne Convention and Exhibition Centre
melbourne Convention and Exhibition Centre (mCEC) put Victoria on the world stage when it won the title of Australasia’s Leading meetings and Conference Centre for the second year running at the 2013 world Travel Awards.
and MCeC is set to claim even greater global attention in 2014, with a busy calendar of events including the largest medical conference ever to be held in australia, the 20th international aidS Conference, expected to attract 14,000 delegates.
Hailed as “the oscars of the travel industry” by the Wall Street Journal, the World travel awards are decided by industry votes. this year’s event, held in october in dubai, was particularly significant for Victoria with Melbourne also voted australasia’s leading Meetings and Conference destination.
MCeC won its prestigious award after facing strong competition from six leading venues in australia and new Zealand, including Sydney Convention and exhibition Centre, SKyCity auckland Convention Centre and Cairns Convention Centre.
“the global acclaim MCeC continues to attract pays tribute to the teamwork and outstanding commitment of all those involved in supporting the Victorian State Government’s investment in the business events sector and boosting economic growth,” says MCeC Chief executive Peter King.
Business events contribute more than $1.2 billion to Victoria annually, with the economic impact driven by spending on accommodation and hospitality, as well as the millions of dollars worth of transactions conducted daily at exhibitions, meetings and events within the walls of mCEC.
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WitH tWo World touriSM aWardS under itS belt, MCeC iS PreParinG For an exCitinG Calendar oF eVentS in 2014.
tourIsmtourIsm
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vECCI member wins Victoria’s top sustainability prize
VECCI member moonee Valley City Council has been awarded Victoria’s highest sustainability honour for its efforts to increase recycling amongst public housing residents. The Council was named the winner of the prestigious premier’s Recognition Award at the 2013 premier’s Sustainability Awards in October, and also took home the Community Award.
another VeCCi member, Kilsyth-based manufacturer rae-line, was honoured with the Small and Medium enterprises award, while Melbourne Chamber of Commerce member rMit university won the infrastructure and buildings award.
the Premier’s Sustainability awards acknowledge sustainability leadership, innovation, creativity and achievement.
Moonee Valley City Council’s ascot Vale Housing estate Household recycling Project, a partnership with the Wingate avenue Community Centre, involved the delivery of recycling services to more than 1500 residents. Within the first six months, nearly 50 tonnes of recyclables were recovered, litter on the estate was drastically reduced and three people secured full-time jobs as a direct result of the new skills gained from participation in the project.
it defied the many failed attempts to introduce recycling and established a ground-breaking, replicable model using targeted and broad-ranging education and the engagement of culturally and linguistically diverse groups.
Sustainability Victoria Ceo Stan Krpan says a key initiative of the project is the focus on engaging residents from many cultural backgrounds, 55 per cent of whom were born overseas.
the key to success has been face-to-face education by a door-knocking team drawn from residents to explain the service.
“this project promotes education, communication and most importantly, community engagement,” says the Mayor of Moonee Valley, Councillor Jan Chantry.
“it has been a huge success and will hopefully dispel the belief that effective public housing recycling services are simply too hard and not worth attempting.”
rae-line, a 41 year-old family-owned and run business, manufactures soft trim components, such as upholstery, leather and vinyl trim and carpet, for the transport industry. it received the Small and Medium enterprises award for its work introducing sustainability practices across its operations.
the business appointed an environmental Co-ordinator in 2012 and developed an environmental and Sustainability Policy, which is supported by a number of core business activities, each aimed at improving environmental performance.
"as a result of their new policy, the company installed Victoria’s second largest privately owned solar power system, which means all of the business’ seven sites are now 100 per cent solar," Mr Krpan says.
rMit university won the infrastructure and buildings category for its Swanston academic building, which comprises some 35,000m2 of floor space over 12 levels and is home to 850 academic and administration staff and 6000 students.
“the building, which is a Swanston Street icon, has deservedly been awarded a Green building Council of australia (GbCa) five-star Green Star education rating for environmentally sustainable design and stands as a showcase for integrating sustainability features in outstanding design," Mr Krpan says.
For further information on the premier’s sustainability Awards, visit www.sustainabilityawards.vic.gov.au.
Powering your business – top tips for solar successbY JOHn gRIFFITHs
with electricity costs rising sharply in recent years, many SmEs are looking for ways to ‘future proof’ their business against further price rises. Couple this with solar energy (photovoltaic) system prices dropping and the business case for installing solar is becoming very attractive.
in response to the strong uptake of solar energy in the residential sector and the rapid fall of system prices, the Victorian Government late last year reduced the minimum mandated feed-in tariff (Fit) to eight cents per kilowatt hour (kWh). this means the amount you get paid for electricity being fed back into the grid has reduced from previous levels of 60c/kWh and 25c/kWh.
While this may sound like bad news for households or businesses looking to install solar, it isn’t that clear cut. in practice, what this change means is that the real benefit of installing a photovoltaic (PV) system no longer comes from feeding energy back into the grid, but rather offsetting your own consumption. businesses are often much better suited than your average household to the lower Fit because they consume most of their electricity during the day when their solar panels are generating. they can make significant savings on the energy that they no longer have to purchase from the grid, with many solar PV systems providing electricity at 7-8c/kWh, substantially lower than purchasing off the grid at between 18-25c/kWh.
in partnership with the Clean energy Council (CeC), VeCCi hosted a sell-out breakfast in September for more than 100 Victorian businesses keen to learn about solar energy. the event also served as the launch of the CeC’s Guide to installing Solar PV for business and industry. below is a list of the five top tips that energy experts shared with attendees on the day.
1. Understand your business’ electricity consumption and choose the right size system for your needs. Get quotes for different sized systems and do the sums to help you understand how the business case may vary accordingly.
2. Understand your electricity tariffs and how they might change. this is particularly relevant for large, commercial users. it is
important to know how your reduced demand for grid electricity may change, either positively or negatively, your existing contract arrangements with your retailer.
3. Find the right CEC accredited installer/designer. ask about other installations they’ve managed, what sort of support they offer post-installation and if they have a working relationship with your local distribution network provider (for example, Powercor).
4. Do your due diligence on technology, products, warranties and guarantees. Most inverters should be supplied with an approximate 10-year warranty and panels with a 25-year warranty. remember that, as with all products, there are varying levels of quality that can affect the efficiency and reliability of your system.
5. Engage with your electricity distributor early to understand grid connection requirements. there will be different requirements for grid connection for commercial scale systems than for residential systems and these will also depend on your location. in some instances, grid connection can be very costly, affecting what may otherwise be a strong business case.
the solar energy market can be confusing and there are a few key aspects that businesses need to understand. in response to the rising level of interest in solar energy and to help support Victorian SMes seeking further information, VeCCi has developed resources to make things simpler and help you ask the right questions. Keep an eye out for more briefings in the coming months or, for the time-poor, join our webinars on the topic. Find out more by visiting www.vecci.org.au/business-solutions/training/briefings.
if you’ve been considering the business case for solar and want to learn more about how it may assist in reducing your exposure to electricity price increases, contact VeCCi’s free Carbon Compass helpline. Call 03 8662 5490 to receive professional and impartial advice from one of our sustainability consultants. you can also register your interest in our next session on solar PV by emailing [email protected].
John griffiths is a VECCI sustainability Consultant.
sustAInAbIlIty
the door-knocking team from Moonee Valley City Council's award-winning recycling project.
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Women in BusinessWedneSday 11 SePteMber 2013
Magazine queen nene King told how she rose through the media and publishing ranks and transformed Woman’s day into an australian success story at VeCCi’s September Women in business event. nene was joined by actress Mandy Mcelhinney, who portrayed her in the abC miniseries Paper Giants: Magazine Wars.
vECCI Business Leaders Lunch Monday 2 SePteMber 2013
Guests at VeCCi’s September business leaders lunch were inspired by radek Sali, the Ceo of one of australia’s most recognisable and fastest-growing companies, Swisse Wellness. radek told of the Swisse Wellness philosophy – “celebrate life every day” – and how people, principles and passion come before profit.
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vECCI-Pitcher Partners Grand Final Lunch Friday 27 SePteMber 2013
Guests at the 2013 VeCCi-Pitcher Partners Grand Final lunch quizzed a panel of aFl identities including barry Hall, richmond coach damien Hardwick and St Kilda captain nick riewoldt. Hosted by Mark Howard and tiffany Cherry, the event was held on Grand Final eve at the MCG’s olympic room and included a charity auction and handball competition.
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2013 vECCI victoria Summit tHurSday 10 oCtober 2013
More than 100 delegates attended the 2013 VeCCi Victoria Summit at Parliament House to help develop a business agenda to present to the major parties in the lead-up to the 2014 state election. the diverse group included VeCCi, VtiC and Melbourne Chamber of Commerce members, VeCCi directors and executive Council members, and representatives from local government, government agencies and other bodies.
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If the answer is YES, whether you are an employer or a worker, you must be registered with CoINVEST, the administrator of portable long service leave for Victoria’s construction workers.
Are you pArt of the construction industry?
www.coinvest.com.au
for all other enquiries contact our Membership services team on 03 9664 7666.
To see whether you or your workers should be registered with CoINVEST, visit www.coinvest.com.au for a full list of all occupations covered.
eMployersAs an employer you are required to register your business and make regular contributions to CoINVEST on behalf of your workers in order for them to receive their long service leave entitlements.
WorkersAs a worker you must register with CoINVEST to receive your entitlement to paid long service leave. It doesn’t matter how often you change jobs within the industry or how many employers you work for, CoINVEST maintains an up-to-date record of your employment history.
CoINVEST covers workers and apprentices employed on commercial, industrial or domestic projects.
All full-time, casual or part-time workers, even self-employed and labour hire workers, are covered by the scheme. Anyone and everyone performing work in the construction industry must be registered.
trAdes covered include:• Building trades work
• Metal trades construction and maintenance work or industrial machinery or equipment services.
• Electrical contracting work.
In some instances work may be covered by the scheme even though you are not working on a construction site.