VECCI Chief Executive Mark Stone said VECCI welcomes the State Government's announced establishment of the Level Crossings Removal Authority and initial funding allocation to remove 50 level crossings.

"VECCI has long supported this project for the benefit it will bring to Victoria's transport network through the alleviation of congestion and its significant job creation potential, with 4,500 jobs to be created over the life of the project," Mr Stone said.

"It is positive to see the initial funding allocation of $100 million for the progression of planning works and establishment of the authority. The announced first tranche of removals, in St Albans, Blackburn, Glen Iris and Ormond, will be welcomed by local and affected surrounding communities, including business transport users.

"An efficient, convenient and affordable transport network is important for the economic growth of our state. We applaud the Government's action on this project and will continue to urge for the progression of other vital transport projects such as the Tullamarine Freeway widening."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

THE VECCI-Bank of Melbourne survey of business trends and prospects released today reveals that export activity, selling prices and investment levels in the tourism sector were strong over the three months to December 2014. 

“It is pleasing to see that tourism respondents reported some of the highest levels of capital investment and export activity, with these positive trading conditions expected to continue through the first quarter of 2015,” said VTIC Chief Executive Dianne Smith. 

“A contributing factor could be the low Australian dollar which encourages domestic tourism, as well as improves the value proposition of Australia as a long-haul destination for international travellers.”

Despite expected positive trading conditions in the first quarter of 2015, profitability in the sector is expected to decline, in part due to the continued rise in labour and wage costs.

Of the seven major industry sectors surveyed, the greatest number of respondents reporting that they were affected by penalty rates came from the tourism and recreation sector. 

Of the respondents affected by penalty rates across all sectors, almost all indicated they would provide additional working hours to employees or reinvest the savings back into their business if penalty rates were removed.

“The survey results show us that despite some strong performance in our sector, wage and labour costs remain a significant constraint on tourism businesses,” said Ms Smith.

“VTIC will continue to advocate for reforms that encourage jobs growth and improved productivity as visitor numbers grow in the sector.”

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice.

Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

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EXPANDING the contribution of Australian enterprises to Australia’s defence industry exports will be explored at a public hearing in Canberra on Friday.

A range of companies which export defence products and services will appear before the Defence Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade.

These include Aspen Medical, an Australian-owned, global provider of healthcare solutions across a wide range of sectors. Also giving evidence will be Austal, which in addition to designing and manufacturing commercial and defence ships, provides support services, including through life support, integrated logistics support, vessel sustainment and systems support through their global supply network.

The Sub-Committee will also hear from the Australian Business Defence Industry, an association with membership ranging from large global stakeholders (primes) to small companies, and the Australian Industry Group Defence Council, which represents Australian defence businesses and supports ADF personnel.

Barriers to increasing Australia’s export performance identified by these submissions will be explored at the hearing. These impediments include;  management of intellectual property; an over-reliance on large off-shore companies; and difficulty selling products not in service with the ADF.

Chair of the Defence Sub-Committee, Senator David Fawcett (SA), said the hearing will provide an opportunity to explore these issues and other barriers to expanding exports of defence goods and services produced by Australian companies.

“Defence industry should be seen as fundamental to Australia’s defence capability, which means we need it to be innovative and sustainable. One way to achieve this is for the Government to encourage, and where appropriate, facilitate export to suitable nations,” Senator Fawcett said.

The inquiry's terms of reference are available on the Committee’s website.

Public hearing

Date/Time: Friday, 13 February 2015, 9:00am to 4:30pm.

Location: Parliament House Committee Room 1S4.

Organisations: Australian Business Defence Industry Group, Australian Industry Group Defence Council, QinetiQ, ASPI, Austal, BAE Systems Australia, Northrop Grumman, Aspen Medical and MBDA Systems.

The hearing will be audio broadcast live at www.aph.gov.au/live.

http://www.aph.gov.au/jfadt

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A PICK UP in export activity, sales and employment saw out the last quarter of 2014 for Victorian business but has not translated into improved confidence for 2015, according to the VECCI - Bank of Melbourne survey of business trends and prospects released today.

Encouragingly, exports, particularly among Victoria’s diverse manufacturing sector, rose for the quarter and were one of the few business indicators expected to continue to rise into the new year as a result of the lower Australian dollar and healthy underlying demand among our key trading partners.

Among other highlights of the quarterly survey of over 400 businesses across seven major industry sectors was the comparatively strong sales and employment performance of the wholesale and retail sector.

Unfortunately, the strong finish to 2014 has not led to positive sentiment towards prospects for the state and federal economies in the year ahead.

Although 17 per cent of respondents anticipate stronger economic growth for the Australian economy over the next 12 months, this is well below the 28 per cent who held this view in the previous quarter.

“These findings reflect the lowest level of optimism about the national economy in two years,” said VECCI Chief Executive Mark Stone.

For Victoria, 18 per cent of respondents anticipate that state economic conditions will improve over the year ahead, a fall from 25 per cent in the previous quarter.

Regional respondents were more optimistic about the Victorian economy than their metropolitan counterparts, with 22 per cent expecting stronger conditions over the year ahead, compared to only 16 per cent of metropolitan respondents.

“The results show enormous opportunity for the new Victorian Government and the Federal Government to deliver policy reforms that raise business sentiment and competitiveness,” said Mr Stone.

“Action to reduce business costs and provide long-term certainty is needed to ensure this is a one-off dip and not the start of a downward trend in business confidence.”

“The latest VECCI-Bank of Melbourne survey of business trends and prospects is a mixed report card for the Victorian economy, revealing a disappointing decline in business confidence,” said Bank of Melbourne Chief Executive Scott Tanner.

“However, the combination of relatively low interest rates and a weaker Australian dollar should ease pressure on Victoria’s key sectors and provide growth opportunities.”

Background – About VECCI

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers’ body in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

Background – About Bank of Melbourne

Bank of Melbourne is investing in Melbourne and regional Victoria. Since re-launching in July 2011, the bank has tripled its workforce, opened 97 branches and become even more involved in the local community. The bank partners with the organisations and events that matter to Victorians. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.

www.bankofmelbourne.com.au

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