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

ends

THE Victoria Tourism Industry Council (VTIC) has applauded Sovereign Hill in the wake of the release of the economic impact study revealing the significant benefit the tourist attraction brings to Victoria.

The study shows Sovereign Hill contributed $228.5 million and 1,422 jobs (including part-time, casual and full-time) to the Victorian economy in 2012/2013.

“This significant contribution and job creation is realised through hotels, B&Bs, cafes, restaurants, taxis, supermarkets and in many other ways in Ballarat and throughout Victoria,” said VTIC Chief Executive Dianne Smith.

“This is a great example of our mantra that ‘tourism equals jobs’, especially in regional Victoria.

“This study demonstrates that investing in tourism infrastructure and product development provides considerable returns in terms of employment, regional productivity improvements and community cohesion."

More broadly, 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.

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

vtic.com.au  

DIPLOMATIC representatives from countries as diverse as the United Arab Emirates, Jordan, Qatar, Egypt, Morocco, Lebanon, Kuwait, Iraq and Tunisia will attend a roundtable public hearing tomorrow for a federal parliamentary inquiry into trade with the Middle East.

Members of the Joint Standing Committee on Foreign Affairs, Defence and Trade will be asking the representatives of the Gulf states about a resumption of the free-trade negotiations with the Gulf Cooperation Council, which stalled in 2009.

The Trade Sub-Committee will also be looking for insights into how Australia can best grow its $16 billion in trade with a large countries such as Egypt, as well as the fast developing smaller nations like Morocco, Jordan, Tunisia and Lebanon.

Australia’s trade, investment and community engagement with the Middle East has been enhanced by the growing aviation links with 140 flights a week between Australia and the Gulf and the presence of more than 350 Australian companies in the region. Australian businesses are expected to take advantage of opportunities in the region with Dubai hosting World Expo in 2020 and Doha hosting the World Cup in 2022.

According to the Department of Agriculture’s submission, as the population grows in the Middle East, the demand for Australian-grown food such as wheat, sheep meat and other agricultural exports will also rise due to the physical limitations of the region’s arid climate, lack of suitable farming land and scarcity of water.

In 2012-13, Middle East countries imported more than $3.4 billion of processed and unprocessed food from Australia, and according to a Department of Industry’s submission, the demand for premium cuts of lamb and beef and other high-value foods will grow along with the popularity of premium restaurants, supermarkets and convenience stores in the region.      

Public hearing
Date/Time:  Wednesday 11 February 2015, 11:00 am
Location:      Committee Room 1R1, Parliament House, Canberra: 
Witnesses:    Diplomatic representatives of Middle Eastern nations

Live audio broadcast will be available at www.aph.gov.au/live

A TOTAL of 22 lenders have announced rate cuts since RBA cash rate announcement on Tuesday February 3, 2015, according to comparison website finder.com.au.

According to finder.com.au money expert Michelle Hutchison, all four big banks have announced rate cuts and borrowers will be about $82 out of pocket per month because of delays in passing on the cut and the fact that full rate cuts have not been passed on in past cycles.

"With all four major banks now announcing rate cuts, the total number of lenders to so far make announcements is 22 according to finder.com.au," Ms Hutchison said.

"Six lenders announced cuts yesterday including AMP, ANZ, BankVic, National Australia Bank, P&N Bank and RAMS.

"Twenty-one of the 22 lenders have announced variable home loan rate cuts of 0.25 percentage points, while Westpac still remains the only lender to move beyond the Reserve Bank cut, passing on 0.28 percentage points.

"There has only been one lender to so far drop its variable rates this week, with Loans.com.au cutting rates effective Wednesday February 4, 2015. BankVic follows by reducing its rates on February 9 then ANZ on February 12. The remaining 19 lenders will pass on the Reserve Bank's rate cut from February 20-27," Ms Hutchison said.

"Despite the rate cuts, the average borrower with a $300,000 home loan will still be $82 out of pocket per month on average because most lenders haven't passed on the full rate cuts since November 2011.

"Borrowers with a $700,000 home loan are missing out on almost $200 on average per month.

"But since November 2011, borrowers with an average $300,000 home loan will be paying $400 less in monthly repayments when the latest round of rate cuts kick in next month. For a $700,000 mortgage, that's almost $1,000 less in monthly repayments.

"Borrowers can get even more if they compare home loans and ask their lender for a discount. Variable rate home loans are now starting from as low as 4.23 percent by Loans.com.au so if you have a variable home loan, keep an eye on your rate and don't settle for paying more than you need to."

Click here to view a table of the lenders that have so far announced rate cuts and we will be updating this page as we hear more announcements: 

www.finder.com.au/rba-cash-rate

ends

IMPROVING links between research and industry, and encouraging industry leadership to find, exploit and create business opportunities, are essential when competing with global businesses in the defence industry, according to the Department of Industry.

The department will give evidence at a public hearing tomorrow of the Defence Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade.

The Department of Industry works closely with the Defence Materiel Organisation’s Australian Military Sales Office, the Defence Export Control Office and Austrade to maximise export opportunities for Australia’s defence industry.

The department’s appearance at the hearing will provide an opportunity for the Sub-Committee to explore a range of challenges for Australian companies engaged in advanced manufacturing, including those companies supporting the defence industry.
 
Chair of the Defence Sub-Committee, Senator David Fawcett (SA), stated that, “While outlining what the challenges are and what is already being done, the inquiry will allow us to see if efforts can be better focussed to foster a thriving defence industry sector, incorporating research and innovation as well as manufacture and investment opportunities.”

The inquiry's terms of reference include identifying barriers and impediments to the growth of Australia's defence exports; how Government can better engage and assist Australian defence industry to export its products; the operation of the Defence Export Control Office; and assessment of the export support given to defence industry by governments of comparable nations.

Public hearing
Date/Time: Tuesday, 10 February 2015, 5.40 pm
Location: Parliament House Committee Room 1R1
Organisations: Department of Industry

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

THE Council of Small Business Australia (COSBOA) is calling for all Members of Parliament to focus on the job of running the country, not on chasing votes through opinion polls as internal divisions and lack of confidence within the Liberal Party threatens to destroy the nation’s leadership.

Paul Nielsen, Chairman of COSBOA said today, “Our members are sick and tired of continued leadership uncertainty and policy stonewalling in the federal sphere. SME owners know that a business without leadership fails, a business where leadership is uncertain fails and businesses without a plan or a strategy and the capacity to execute it is going to fail. 

"Federal politicians, whether on the Government front bench, the back bench, or on the Opposition parties must put the wellbeing of the country before their personal agendas. All MP’s must work to fix these issues one way or the other and stop playing shallow politics.  Small business must have certainty to reboot our economy.”

Peter Strong, CEO of COSBOA added, “In times of uncertainty it is those people who control organisations with money and power who often see the opportunity to push their personal agendas.

“In the last twelve months the small business community has had the best policy focus we have ever had due to the efforts of the likes of Bruce Billson, Josh Frydenberg and Ian MacFarlane. The focus has been on competition policy, contract law, the performance of regulators, the future appointment of a Small Business Ombudsman, the improved franchise code of conduct, the outing of Large Corporates as toxic corporate partners for small business as well as a focus on fixing the vocational training problems in our country, this has been extraordinary. 

“We do not want to lose the focus on these issues that are so important to the social fabric of Australia and to the economy. Those small number of big businesses and organisations, including a lot of big businesses that do not contribute an equitable share of tax dollars, may well use this  uncertainty to remove the focus on the economy and replace it with their vested needs. The extremes of left and right ideology may also use this to push their own agendas” Mr Strong concluded.

Paul Nielsen added that, “The country has had far too many years of policy and leadership uncertainty and that has to change. Next month our CEO will be outlining the threats to our nations continued prosperity generated by a minority of unelected people and organisations whose vested agendas can promote their own welfare not national wellbeing.

"In the meantime we do not want to see the current leadership issues in the Federal Parliament dominate the business of Government and we call upon all MP’s and Senators to resolve these issues once and for all.”

www.cosboa.org.au

ends

THE Australian Retailers Association (ARA) congratulates Tony Abbott on retaining his position as Prime Minister after this morning’s failed spill motion in Canberra but insists the government must now do all it can to restore the nation’s confidence.

ARA Executive Director Russell Zimmerman said the government must regain focus and get on with the job of doing business.

“We are pleased that this morning’s outcome means Australia doesn’t have to witness the revolving-door style of leadership that we have experienced with past governments. At the end of the day, however, we need a sound economic path that improves productivity and certainty and it is imperative that the government learns from today’s events and does all it can to restore stability.

“The ARA asks that the economy and small business are put at the forefront of the government’s action plan, and we also ask that the senate does all that it can to assist with legislation processes moving forward.

“We have every hope that with the government resorting stability and supporting business, retailers and consumers alike will be able to enjoy a heightened sense of confidence in 2015,” Mr Zimmerman said. 

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

ENDS

THE 2015 Australian Small Business Champion Awards applications are set to close on February 18.

The awards recognise small business leaders in wide variety of industry categories. Small business people dedicate their lives in serving their communities and deserve recognition.

These awards are the only dedicated national program recognising small business.

All small businesses in Australia’s retail, services and manufacturing industries are eligible to enter the awards – there are 39 categories in total.

Everybody loves a winner, and the awards will put outstanding businesses on the map, making customers, suppliers and communities stand up and take notice.

Steve Loe, founder of the awards and managing director of Precedent Productions said, “Now in its 17th year, the national awards program has established a reputation for excellence and has become known as the ‘Oscars’ of the small business community in Australia.

“It provides an opportunity for small businesses to celebrate and receive national recognition for their achievements.”

Entries for the 2015 Australian Small Business Champion Awards are now being accepted and close on Wednesday, 18 February 2015.

The Australian Small Business Champion Awards are proudly supported by major sponsors TrueLocal, and associate sponsors BizCover, Castaway Financial Forecasting System, FrontLine and Key Person of Influence.

Businesses throughout Australia will be competing on a national level to be named Australian Small Business Champion in their category at the national awards ceremony in April at The Westin Sydney.

Entry forms are available at www.businesschampions.com.au

For further information about the Australian Small Business Champion Awards visit www.businesschampions.com.au.

ends