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April goes awry for Aussie retailers

THE Australian Retailers Association (ARA) said the latest Australian Bureau of Statistics (ABS) April retail trade figures showed a disappointing 2.62% seasonally adjusted total growth year-on-year. 

Russell Zimmerman, executive director of the ARA, said higher petrol prices and declining house prices were partly to blame for a soft April, with consumers tightening their belts to meet their household budgets.

“April’s figures are somewhat poor for the industry, with either flat or declining turnover across several key categories,” Mr Zimmerman said.

Hardware and Building (5.33%) and Cafes and Restaurants (4.86%) led year-on-year turnover growth in April, while Department Stores (-3.74%) and Clothing (0.56%) returned to their well-documented struggles.

Mr Zimmerman said an unseasonably warm Autumn impeded winter apparel sales, with a later-than-usual break in the weather pressuring retailers to begin early discounting to keep the tills ringing.

“The continued slide in the Department Store category shows no sign of abating, especially with its heavy reliance on Clothing and Footwear, which are also experiencing continual problems,” Mr Zimmerman said.

“While Household Goods retailing, and Cafes, Restaurants and Takeaway Food remain strong, overall growth has been weighed down by mixed results in Food retailing and Clothing and Department stores going backwards.”

Food Retailing grew by 3.45 percent year-on-year, led by Supermarkets (3.62%), however, Specialised Food (0.28%) was flat, reflecting an earlier-than-usual Easter.

Across the country, Victoria (4.73%), the Northern Territory (3.64%) and New South Wales (3.55%) showed the strongest year-on-year growth of all the states, while the Australian Capital Territory (2.85%), Tasmania (2.82%) and South Australia (1.76%) remained steady. Western Australia (0.12%) saw a slight increase for the first time in 2018. Concerningly, Queensland saw a major drop off, posting a 0.03% rise to lag behind the rest of the country.

“We are hoping that relief will be just on the horizon for retailers, with the application of GST to overseas purchases under $1000 and potential income tax relief on the way from 1 July,” Mr Zimmerman said.

“Local retailers will finally be able to compete on a more level playing field once the GST changes come into effect, and we are hoping this will see consumers increase their spending in local stores.”

Monthly Retail Growth (March 2018 - April 2018 seasonally adjusted) 

Cafes, restaurants and takeaway food services (1.31%), Other retailing (0.87%), Household goods retailing (0.69%), Food retailing (0.30%), Clothing, footwear and personal accessory retailing (-0.82%) and Department stores (-0.90%).

Northern Territory (2.58%), Tasmania (0.90%), New South Wales (0.69%), Western Australia (0.69%), Australian Capital Territory (0.55%), Victoria (0.35%), Queensland (0.14%), and South Australia (-0.59%).

Total sales (0.27%).

Year-on-Year Retail Growth (April 2017 - April 2018 seasonally adjusted)

Food retailing (3.45%), Cafés, restaurants and takeaway food services (3.38%), Household goods retailing (3.00%), Other retailing (2.10%), Clothing, footwear and personal accessory retailing (2.02%), and Department stores (-3.74%).

Victoria (4.73%), Northern Territory (3.64%), New South Wales (3.55%), Australian Capital Territory (2.85%), Tasmania (2.82%), South Australia (1.76%), Western Australia (0.12%), and Queensland (0.03%).

Total sales (2.62%).

 

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Aurizon can immediately end the Qld coal export impasse it started says QRC

THE QUEENSLAND coal industry is prepared to accept the independent competition regulator’s final decision on Aurizon’s rail maintenance budget and Aurizon should declare the same immediately and end the coal export impasse.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said Aurizon should cooperate with the Queensland Competition Authority, immediately resume its normal maintenance program on the Central Queensland Coal Network and end the coal export impasse it started.

In its submission lodged with the QCA this afternoon, the QRC has noted the regulator’s preliminary position was for Aurizon’s rail maintenance budget to be increased by $73 million over four years, pending Aurizon itself providing the QCA with more information to support its position.

The QRC estimates the cost of Aurizon’s plan to stop the movement of up to 20 million tonnes per annum under its new maintenance regime would cost up to $4 billion per annum in lost Queensland export revenue and up to a $500 million cut in royalties paid to the Palaszczuk Government for services and infrastructure for all Queenslanders.

Link to Queensland Resources Council submission to the Queensland Competition Authority http://www.qca.org.au/getattachment/6892ea34-b870-45fe-8171-9ebc000aac56/QRC-submission-on-UT5-maintenance-matters.aspx

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Minimum wage causes maximum employment loss

THE AUSTRALIAN Retailers Association (ARA) is concerned the National Minimum Wage increase of 3.5 percent announced today by the Fair Work Commission (FWC) will stifle jobs growth within the retail sector.

Today the FWC announced the National Minimum Wage will increase to $719.20 per week, or $18.93 per hour from 1 July 2018. The General Retail Industry Award (GRIA) will increase to $789.90 per week or $20.79 per hour for full-time and part-time employees and $25.98 per hour for casuals.

Russell Zimmerman, executive director of the ARA, said Australian retailers were already facing an unsteady trading environment and this increase will be detrimental to the growth and stability of the Australian retail industry.

“Monthly retail sales growth is currently around 2 percent however we would like to see this growth increase to 4 percent to ensure retailers can invest in their business and employ more staff,” Mr Zimmerman said.

“With retailers already struggling to keep their heads above water, today’s 3.5 percent minimum wage increase will stifle retail growth and delay staff employment across the sector.”

As the retail industry is volatile at present, the ARA sought a minimum wage increase of 1.9 percent to increase staff employment by 3.5 percent over the next 12 months.

Given the current state of the sector and recent store closures, Mr Zimmerman said today’s increase would certainly have a negative effect on retailers and could potentially result in job losses.

“The ARA are passionate about maintaining a sustainable wage growth and would like to see retailers given the chance to not only invest in their business, but invest in employment to promote retail as a vibrant career choice for all Australians,” Mr Zimmerman said.

“Today’s minimum wage increase is well above inflation, putting the brakes on employment and innovation throughout the industry, which is detrimental for the retail sector.”

With the Australian retail industry employing over 1.2 million people, the ARA believed a 1.9 percent minimum wage increase would have brought balance back into the industry and preserved jobs for Australia’s largest private employer.

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Local companies urged to get involved in submarine program

IN ANOTHER positive sign for local industry, Aussie companies are being invited to supply equipment for the Future Submarine Construction Yard at Osborne in South Australia.

The Minister for Defence Industry, Christopher Pyne, said it’s very important Naval Group Australia continues to engage with Australian industry in the development of Australia’s shipbuilding enterprise.

“The Turnbull Government is committed to creating a sovereign naval shipbuilding capability including the construction and sustainment of the Future Submarine fleet for the Navy,” Minister Pyne said.

“The Future Submarines will be built in Australia, by Australians, and we want to maximise the involvement of local industry in all phases and facets of the program.

“The 15 Expressions of Interest are the first for capital equipment released by Naval Group Australia with more scheduled for release," he said.

“The items required include machining, metal cutting, shot blasting and automated welding equipment.”

Minister Pyne said Australian industry involvement in the Future Submarine Program was expected to generate an annual average of around 2,800 jobs over the life of the program.

“This equipment will be central to creating the Australian capability to manufacture the submarines,” Mr Pyne said.

Interested companies should visit: www.NavalGroupFutureSubmarine.icn.org.au

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Prestigious awards program showcasing NSW exporters on the global stage 

THE Export Council of Australia (ECA), along with principal partner the NSW Government, and its 2018 award partners, have announced that applications are now open for the 2018 Premier’s NSW Export Awards.

The 56th annual awards were officially launched on May 21 at the Sydney Start Up Hub.

The keynote address at the launch was given by Jonathan O'Dea, Parliamentary Secretary to the Premier and Treasurer who discussed the value of exports to the NSW economy and noted the importance of recognising NSW exporters.

"The NSW Government is determined to help more businesses reach the global markets. We want to see your business shine on the global stage.” Mr O’Dea said.

At last year’s awards there were a record number of companies with 82 finalists across 21 awards categories.

CEO of the ECA, Alina Bain said, “We were pleased to have our 2017 NSW Women in International Business winner, Jane Lu, founder and CEO of Showpo, talk about growing a multi-million-dollar e-commerce business and winning the prestigious award. It is an inspiring story and the e-commerce opportunity is one the awards program in 2018 will explore through its regional events, with upcoming locations in Griffith and Wollongong.

“The Premier’s NSW Export Awards will be entering its 56th year and as always we will be looking for innovative exporters across the state to profile and celebrate. The awards give exporters the opportunity to make their company and international business story known. The awards are also an acknowledgement of their contribution to NSW’s economic future.” Ms Bain said.

This year the national program will include a new category: Emerging Exporter Award, for outstanding export achievement by an enterprise in any industry sector which has been exporting goods or services for three years or less.

“The awards program looks to celebrate international business success and innovation across NSW," Ms Bain said. "The ECA will be looking for diverse companies from every industry, location and size, companies both emerging and established are encouraged to apply.

"The international business landscape in NSW encompasses many companies working tirelessly to compete on the global stage. NSW’s exporters succeed through persistence and a recognition that Australia’s industry has much value to add for international customers. The awards recognise this challenge and rewards those businesses taking it on.” Ms Bain said.

The ECA is calling on all New South Wales companies engaged in international business to apply for the program.

Information can be found at www.exportaward.com.au/nsw.

Applications will officially close on 17 August 2018. The finalists will be notified in September with winners announced at a prestigious awards presentation dinner on the 24 October 2018 at The Star, Pyrmont.

Winners in the National Award categories will go on to represent the State at the Australian Export Awards National Ceremony in December.

For any enquiries on entering the awards, attending the Sydney launch event or the regional e-commerce events, contact Kristen Mulligan at This email address is being protected from spambots. You need JavaScript enabled to view it.

2018 National award categories:

  • Agribusiness
  • Business Services
  • Creative Industries
  • Digital Technologies
  • E-commerce
  • Education and Training
  • Emerging Exporter *NEW*
  • Environmental Solutions
  • Health and Biotechnology
  • Manufacturing
  • Minerals, Energy and Related Services
  • Regional Exporter
  • Small Business

2018 NSW state specific award categories:

  • NSW Asian Exporter
  • NSW Innovation in Export
  • NSW International Development
  • NSW Women in International Business
  • Western Sydney Exporter
  • NSW Defence Industry

 www.export.org.au

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Free marketing workshop to take place in Albion as part of Small Business Week

THE TEAM at Outsource2Us will present The Many Faces of Marketing Workshop, a free event designed to deliver valuable marketing skills to small businesses, as part of Queensland Small Business Week 2018.

Outsource2Us is conducting The Many Faces of Marketing Workshop on Thursday, May 31 at 5.30pm in the Brisbane suburb of Albion.

Outsource2Us directors Hilary Knights and Jane Toohey said that they were looking forward to providing value to local business owners.

"The workshop has been developed as part of Small Business Week 2018, where the focus is on small business owners networking, connecting and learning new skills to succeed now and in the future," Ms Toohey said.

The team will take attendees through the entire process of marketing a small business, from identifying unique selling points and developing strategy to digital marketing tactics, search engine optimisation and website design.

“We are passionate about helping businesses grow and excited to share our expertise with other local businesses,” Ms Knights said.

Outsource2Us will cover a range of marketing topics during the workshop, which will be held in Albion at Stalled Espresso. Food and beverages will be available to purchase.

www.outsourcetous.com.au

Diary note:

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QRC: Premier correct – Aurizon must sit down with the regulator

THE Queensland Resources Council is supporting Queensland Premier Annastacia Palaszczuk in her efforts to address "growing Japanese concern with the coal export impasse created by monopoly rail operator Aurizon".

QRC chief executive Ian Macfarlane said the Premier’s urgent call for Aurizon and the independent regulator – the Queensland Competition Authority (QCA) – to resolve the threat from Aurizon to halt the export of up to 20 million tonnes of coal was “absolutely correct”.

The Premier said today, as she departed to lead a trade mission to Japan, “I think it’s very important that Aurizon and the QCA sit down and try to resolve this issue as a matter of urgency.”

Mr Macfarlane said, The QRC welcomes the Premier’s visit to Japan and her plan to reassure steelmakers in Tokyo about ongoing supply of Queensland’s high-quality coal.

"Queensland coal exports to Japan have increased to $7.8 billion – the equivalent of one in every $9 of the State’s total exports under the Palaszczuk Government.

"When the Bligh Government privatised QR and established Aurizon, all stakeholders were aware that the management of the Central Queensland Coal Network would be subject to independently and transparently determined undertakings enforceable by the QCA.

“The QCA’s regulatory process is still underway. We only have a draft decision on the table, yet Aurizon has already decided to choke coal supply to Queensland’s customers, like the very worried steel industry in Japan," he said. 

"The QRC and its member companies have worked with the QCA through its review process. In stark contrast, Aurizon have sought to delay, and most recently with an application for judicial review to the Supreme Court, tried to upend the draft QCA process."

www.qrc.org.au

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Time to celebrate Victoria’s manufacturing excellence

MEMBERS of the business community gathered in Melbourne last night at the 2018 Victorian Manufacturing Hall of Fame Awards to celebrate and recognise the leadership and innovation of Victorian companies.

Victoria’s manufacturing sector has significant achievements to celebrate. The sector contributes $27.7 billion to the Victorian economy and has seen 13 months of consecutive growth for the first time in a decade.

This year, the Victorian Manufacturing Hall of Fame Awards was delivered by the Victorian Government in partnership with the Victorian Chamber of Commerce and Industry.

Victorian Chamber of Commerce and Industry chief executive Mark Stone described the awards as a spectacular display of Victoria’s elite manufacturing businesses and congratulated all winners and finalists presented at last night’s gala ceremony.

The 2018 Victorian Manufacturing Hall of Fame Awards winners are:
 
Individual Awards Winners

  • David and Tony Ellul, Marand (Honour Roll)
  • Vanessa Katsanevakis, Sussex Taps (Young Manufacturer of the Year)
  • Vanessa Kearney, Viva Energy (Woman Manufacturer of the Year)
  • Jill Walsh, Actco-Pickering (Woman Manufacturer of the Year)

Company Awards Winners

  • Osteon Medical (Manufacturer of the Year - Small Business)
  • Creature Technology (Manufacturer of the Year - Medium Business)
  • Bosch Australia (Manufacturer of the Year - Large Business)
  • Boeing Aerostructures Australia (Company Induction)
  • Siemens (Leader in Industry 4.0)
  • PACCAR Australia (Leader in Workforce Skills Development) 

Company – Growth Sector Awards Winners

  • Entegra Signature Structures (Construction Technologies)
  • Albins Performance Transmissions (Defence Technologies)
  • Bombardier Transportation Australia (Transport Technologies)
  • Leica Biosystems (Medical Technologies and Pharmaceuticals)
  • Keppel Prince Engineering (New Energy Technologies)
  • Chobani (Food and Fibre) 

Mr Stone also congratulated Victorian Chamber members recognised for their advanced manufacturing capabilities and solid commitment to business excellence.

“We were thrilled to see our members – Boeing Aerostructures Australia, PACCAR Australia, Bombardier Transportation Australia and Chobani – as award winners. We also congratulate other members – Smallaire and Della Rosa – which were amongst the finalists,” Mr Stone said.

The Victorian Chamber encourages manufacturing businesses to nominate in 2019 and celebrate their commitment and contribution to Victoria’s economy.
 
About the Victorian Chamber of Commerce and Industry
The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.victorianchamber.com.au

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Queensland mining sector’s record coal royalties will cover extra infrastructure spending

THE Queensland Resources Council projects record coal royalties of $3.7 billion this financial year which will pay for the Palaszczuk Government’s extra infrastructure spending across the State.

QRC Chief Executive Ian Macfarlane said the projection of $3.7 billion –a $536 million increase on the Government’s pre-Christmas estimate – would allow it to increase infrastructure spending by $1.4 billion to $11.5 billion, and a total of $45 billion in infrastructure over four years.

“Projects like Convention Centre expansion in Cairns, the North Queensland Stadium in Townsville, the M1 in south-east Queensland will be built and funded by coal,” Mr Macfarlane said.

Mr Macfarlane said the increased projections was due to the strong international demand for metallurgical coal and the stable prices for both metallurgical and thermal coal from Queensland.

“This result would make 2017-18 a record 12 months for coal royalties in Queensland. The previous record was $3.4 billion in 2016-17,” he said.

“What does $3.7 billion in coal royalties mean for Queenslanders? It means their Government has $740 to spend on each of the five million Queenslanders.

“The increase in royalties of more than $500 million is the alone is equivalent to the wages for more than 7000 teachers or 7000 nurses, who are so crucial for our health and education systems across the State.

“It is fitting the Government is currently meeting in the Mackay region, which is traditionally the biggest contributor to coal royalties. We anticipate the royalties from the region could exceed $2.3 billion.

“Before Christmas, the Palaszczuk Government confirmed a $414 million increase in royalties this financial year. QRC now expects the Government will reap another $536 million more – or an extra $950 million – this financial year. These increases in royalties give the Palaszczuk Government the opportunity to invest more in Government services and cover almost all of extra $1.4 billion the plan to spend on infrastructure across Queensland in 2017-18.

“In term of the Budget bottom line, the increase means forecast net operating surplus will be now in excess of $1 billion.”

Mr Macfarlane said the role of Aurizon cutting train services to move coal through the Central Queensland Coal Network to export ports was extremely damaging for the industry, the Queensland economy and the State Budget to be delivered on 12 June, wiping up to $500 million off the Government’s royalty expectations.

“The only dark cloud on the horizon for the industry and the Government is Aurizon. It’s maintenance changes in the Central Queensland Coal Network, by Aurizon’s own admission, will stop the movement of up to 20 million tonnes of coal each year,” he said.

BACKGROUND

In December, the Palaszczuk Government’s 2017-18 Mid Year Fiscal and Economic Review (MYEFR) projected coal royalties would be $3.4 billion based on prices assumption for hard coking (metallurgical) coal of US$161 per tonne, semi-soft (metallurgical) coal at US$129 per tonne and thermal coal at US$83 per tonne.

Based on price trends over the year to date, QRC’s projects are based price assumptions for hard coking (metallurgical) coal of US$180 per tonne, semi-soft (metallurgical) coal at US$127 per tonne and thermal coal at US$97 per tonne.

In MYEFR, the Palaszczuk Government projected a net operating surplus of $485 million for 2017.

The QRC is the peak representative body for Queensland ‘s resource sector. The Queensland resources sector provides one in every $6 dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the state, all from 0.1 percent of Queensland’s land mass. In the latest ABS trade data, the Queensland resources sector contributed almost 80% - or $55 billion - of Queensland’s total merchandise good exports of $70 billion over the last 12 months.

www.qrc.org.au

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New areas for Petroleum exploration

AS PARTof its ongoing commitment to meeting Australia’s future energy needs, the Australian Government has announced the 2018 Offshore Petroleum Exploration Acreage Release covering Western Australia, South Australia, Victoria, and the Ashmore and Cartier Islands.

Minister for Resources and Northern Australia Matthew Canavan said the areas will provide a wide range of options for the oil and gas industry, from well-known, petroleum-producing basins to frontier basins that are among the most prospective in the world.

“The Australian Government is committed to the safe and responsible development of oil and gas resources,” Minister Canavan said.

“Offshore oil and gas exploration is vital to meeting Australia’s future energy needs.

“The annual Offshore Petroleum Exploration Acreage Release is a key part of our plan to promote investment in new offshore exploration.”

The 2018 release is made up of 21 areas located across six basins.

The government is now consulting on acreage release reform for future releases. Minister Canavan strongly encouraged all stakeholders to have their say.

“The proposed reform will make future acreage releases more responsive to market demand, improve transparency of consultation processes, and simplify bidding rounds,” said Minister Canavan.

The 2018 Acreage Release is available at www.petroleum-acreage.gov.au

A paper describing the proposed changes  for future acreage releases is available at https://consult.industry.gov.au/

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NTC seeks feedback on a safety assurance system for automated vehicles

AUSTRALIA’s approach to a safety assurance system for automated vehicles is the subject of a Consultation Regulation Impact Statement (RIS) which opened for public consultation on May 15..

According to National Transport Commission (NTC) chief executive Paul Retter, Australia’s existing laws and regulations do not recognise automated vehicles. The Consultation RIS seeks feedback on what role Australian governments will play in assuring the safety of automated driving systems, and what form a safety assurance system would take.

“We have produced the Consultation RIS to gather feedback on the four safety assurance options identified: no change to existing laws, and three options with various choices of safety assurance systems – administrative, legislative, and legislative with a primary safety duty of care on the entity responsible for the automated driving system,” Mr Retter said.

This follows a request by transport ministers across Australia for the NTC to assess the costs and benefits of a mandatory self-certification safety assurance system for automated vehicles.

Self-certification by entities bringing automated driving systems to the Australian market was chosen as the preferred safety assurance approach of government and industry, following on from consultation by the NTC in 2017.

The Consultation RIS has proposed 11 safety criteria that responsible entities would need to self-certify against, which include aspects of safety system design, compliance with road traffic laws, the ability for systems to be upgraded, mandated testing in Australia, and cyber security, to name a few.

“Governments around the world are grappling with regulatory frameworks for automated vehicles, and we aim to ensure Australia’s safety assurance systems are best practice,” Mr Retter said.

The NTC has distributed information on the Consultation RIS to automated vehicle manufacturers internationally as well as across all state and territory governments, the Commonwealth and local industry stakeholders.

Submissions for the Consultation RIS can be made online on the NTC website  until Monday, July 9, 2018.

Following consultation, the NTC will prepare a Decision RIS for consideration by Australia’s transport ministers in November 2018.

A Regulation Impact Statement is required for government decisions that are likely to have a measurable impact on businesses or community organisations. Consultation is required with parties likely to be affected by the regulatory proposal.

The National Transport Commission is responsible for developing an end-to-end regulatory system for the safe commercial deployment of automated vehicles in Australia by 2020.

Click here for more information on the NTC’s suite of projects relating to automated vehicles.

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