Business News Releases

Survey shows business confidence softens after recent optimism

 

A SOFTENING in business confidence has characterised the first quarter of 2014 despite the initial highs of the post-federal election period and a stronger-than-expected December 2013 quarter, according to the latest VECCI - Bank of Melbourne survey of business trends and prospects released today by Victoria's peak employer body.

The state-wide survey of more than 400 businesses shows that 27 per cent of Victorian businesses anticipate stronger national economic growth over the next 12 months. While this is still positive, it is noticeably lower than last quarter when 40 per cent of respondents held this view when surveyed at the end of 2013. 
 
A similar softening was reported in expectations for the Victorian economy, which is unsurprising given the recent closure announcements from automotive manufacturers and Alcoa. However confidence remains well ahead of the reported lows in 2012 and early 2013.

In the three months to March 2014, general business conditions and sales remained largely unchanged, while falls in selling price were widespread, adversely affecting profitability across a broad range of industries. 

The fall in confidence is also reflected in the reported continued decline in investment in buildings and structures. Employment and plant and equipment investment were flat.

“These findings reinforce the importance of governments continuing to prioritise measures that will improve business conditions, in particular by reducing business costs and regulations," says VECCI Chief Executive Mark Stone.

“Victorian business is eagerly anticipating the upcoming state budget which presents a timely opportunity to lower employment stifling taxes such as payroll tax, and accelerate important productivity and job enhancing infrastructure across the state.”

Bank of Melbourne Chief Executive Scott Tanner says: “The Victorian economy is going through a period of transition but remains fundamentally sound. We expect growth will continue to be slow and steady rather than a return to the boom times as the global economy continues to undergo structural change".

VECCI & Bank of Melbourne partnership 
VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly VECCI - Bank of Melbourne survey of business trends and prospects, Business Leaders event series and Women in Business event series. The partnership builds on the mutual goals of both VECCI and the Bank of Melbourne in supporting businesses in Victoria.

VECCI

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

www.vecci.org.au

Bank of Melbourne

Bank of Melbourne is helping build a better Victoria. Since launching in July 2011, the bank has tripled its workforce, opened 84 branches and become more involved in the local community. The bank partners with Victorian organisations and events including the MCG and Melbourne Food and Wine Festival. It’s shaping a vision for the future of our state by supporting industry with initiatives including Agenda Victoria. 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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Small Business and Family Enterprise Ombudsman set to make life easier for small business

PEAK retail industry body the Australian Retailers Association (ARA) congratulates the Federal Government on its first step to delivering the Small Business and Family Enterprise Ombudsman with real power, with the discussion paper released today.

ARA Executive Director Russell Zimmerman said retailers were excited by the news and look forward to contributing their ideas as to how the Ombudsman can best meet their needs.

“It has always been a struggle for time-poor small businesses to know exactly where to go for assistance. We commend the Government’s vision of establishing a single entry point for small businesses and hope that this initiative will indeed make life easier for retailers wanting to find out information about services and programmes.

“The Ombudsman will give small businesses the best chance of success by reducing the time spent accessing advice, resolving disputes and having their voices heard. We were also pleased to hear that the Ombudsman will minimise compliance burdens and reduce red tape so that Government can get out of the way and let small businesses get on with their job.

“Small businesses have certainly faced a rough trading environment over the last few years. The ARA is positive, however, that the Small Business and Family Enterprise Ombudsman is certainly a step in the right direction to getting the industry on the road to recovery,” 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.

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VECCI welcomes $155 million growth fund for manufacturing sector

 

VECCI welcomes the Prime Minister’s announcement of the $155 million Growth Fund, including the significant State Government contribution, which will support Victorian workers and businesses impacted by the announced closures of automotive manufacturing operations in Victoria.

“It is very important that the response to these closures covers the provision of immediate support and analysis to identify and subsequently back those manufacturers capable of diversifying into the markets of the future,” says VECCI Chief Executive Mark Stone. 

“VECCI is very pleased that the supply-chain businesses will have access to support as they face a challenging period of change. The Growth Fund also recognises the need to support the affected workers with career advice and training so they can start acquiring the skills they’ll need to transition to new employment as soon as possible.”

It also identifies the importance of helping supply chain businesses to identify new markets so that those which can diversify, are able to do so.

Recognising that particular regional areas will have been affected also, the $30 million funding for investment in regional infrastructure to encourage business investment is timely.

“It is positive to see recognition of various sectors that have also been highlighted by VECCI as having growth potential for the Victorian economy such as advanced manufacturing, food and agriculture, health and biomedical, mining services, tourism and education,” says Mr Stone. 

“VECCI is also particularly pleased that a significant $60 million component of the total funding aims to boost investment in advanced manufacturing. It is vital that there is investment to support businesses with the potential to break into new markets and provide new, sustainable career paths.

"Victoria has a proud manufacturing history and the Growth Fund will play a vital role in ensuring that the skills of Victorian manufacturing workers are not lost and Victorian manufacturers with leading edge technology and quality products are given every opportunity to build a sustainable future.”

*

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

www.vecci.org.au

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Royalty hike a wrong choice, not a strong choice

 

The Queensland Resources Council (QRC) has called on the state government to ensure its Strong Choices campaign is not hijacked by populist sentiment that assumes higher taxes on the resources sector is the easy way to repair the state’s budget.

QRC Chief Executive Michael Roche said today the public’s reported preference for an increase in resources sector royalties to improve the budget bottom line was an instinctive but misinformed reaction given the tough economic conditions and outlook confronting the sector.

"The coal sector for example has shed over 8,000 jobs in Queensland in the face of some of the most challenging business conditions in decades," Mr Roche said.

"There can be no dispute that the best means of boosting the resources sector contribution to the state’s fiscal repair task is the pursuit of policies to promote sector growth, not a resort to job-destroying tax increases," he said.

Mr Roche said the explanatory notes accompanying the Strong Choices survey bear repeating:

"The Queensland Government increased coal royalty rates in the 2012-13 Budget and has committed to not changing the rates for 10 years. Increasing mining royalty rates at a time of lower commodity prices may impact on the national and international competitiveness for Queensland mines and will impact on jobs.

"Increasing royalties may make resources companies less competitive on the world market. Ultimately, these companies may choose to close some projects, and abandon the development of others, affecting jobs and other investment in Queensland."

Mr Roche said Queensland already has close to the world’s highest taxation rate for coal following huge royalty hikes by the Bligh Labor Government in 2008 and in Treasurer Nicholls’ first budget in 2012.

In his 2012 budget speech, Treasurer Nicholls gave an unequivocal commitment to the coal sector when he said: To give certainty to industry the government will guarantee no change to the royalty rates for coal for ten years from 1 October 2012."

The Treasurer’s commitment was reinforced by Deputy Premier Jeff Seeney on 11 September 2012:

"Coal mining is critically important to Queensland and this guarantee to keep royalties unchanged for the next decade allows companies to make investment decisions with total confidence."

"The QRC has every confidence that the Newman Government has no intention of walking away from these unequivocal commitments to fiscal stability for the coal sector," Mr Roche said today.

"Equally, there is no quick fix in escalating royalties for other resources sector industries.

"The companies behind the emerging export gas sector have invested more than $60 billion in an uncertain global market.

"A royalty increase now would undermine this huge commitment to Queensland and future investment potential.

"Similarly, the state’s metals miners whose royalties were comprehensively reviewed in 2008-09 are in no shape to absorb a further tax hit."

Mr Roche said the QRC congratulated the Newman Government on its bold and open dialogue with the Queensland community on the tough budget choices facing the state.

"The Queensland Resources Council Board has resolved that they have no objection to a program of sale or leasing of some state assets – including port and electricity assets – in order to reduce state debt to a sustainable level," he said.

"The key caveat to the QRC’s support for such a program is that it must be accompanied by a suite of appropriate commercial and regulatory protections for the users of these assets to ensure that Queensland’s core infrastructure supports the state’s competitiveness in a global market for resources.

"In relation to ports, the sector is eager to be involved in discussions around both future ownership and operation of the ports."

Mr Roche said that in pursuing any asset sale and lease program, the government should take great care to ensure that they don’t fall into the trap of opting for transactions that risk long-term detriment to the development potential of the state’s resources sector.

"To the Newman Government’s credit, this has been their overwhelming focus, typified by the Premier’s backing of the ResourcesQ partnership for a 30-year vision for the resources sector."

www.qrc.org.au

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ARA urges retailers to understand their legal obligations this ANZAC Day

PEAK retail industry body the Australian Retailers Association (ARA) encourages all retailers to understand the trading restrictions that apply to their business this ANZAC Day – Friday 25 April.
 
ARA Executive Director Russell Zimmerman said confusion is common for business owners when it comes to organising rosters around public holidays and trading hours.
 
"Given the fact that all states and territories have quite different restrictions when it comes to public holiday trade, it's important for retailers to do their research and ensure they understand their legal obligations during this time,” Mr Zimmerman said.
 
Please see table below:

            

State

Anzac Day

New South Wales

Closed until 1pm unless Exempt or Small Shop or Exempt Area

Victoria

Closed until 1pm unless Exempt shop

Tasmania

Closed before 12.30pm

ACT

Normal trade

Northern Territory

Normal trade

 
 
SOUTH AUSTRALIA
 

 

Anzac Day

CBD Tourist Precinct

Closed before noon

Greater Adelaide Shopping District

Closed

Proclaimed Shopping Districts

Closed

Hardware, furniture, floor coverings and motor vehicle parts

Closed before noon

 
 
QUEENSLAND
 

 

Anzac Day

Exempt

No restrictions

Independent shops

Closed before 1.00pm

South East Queensland

Closed

New Farm

Closed

Group A Areas*

Closed

Gold Coast Tourist Supermarkets

Closed

Cairns CBD Supermarkets

Closed

Port Douglas Supermarkets

Closed

Yeppoon Tourist Area

Closed

Townsville (excl CBD & North Ward)

Closed

Tourist and Seaside Resorts

Closed

Great Barrier Reef Wonderland

Closed

Remainder of State

Closed

 
*Group A Areas are Cairns Tourist Area, Port Douglas Tourist Area and Mossman, Whitsunday Shire Tourist Area, Hervey Bay Area, Townsville CBD (including North Ward), Toowoomba, Mackay, Innisfail, Atherton, Mareeba, Gladstone, Rockhampton, Emeral, Moronbah, Bundaberg, Fraser Coast, Gympie and Biloela
 
WESTERN AUSTRALIA
 

Western Australia

Anzac Day

General Retail Shops

Closed

Perth Metropolitan Area

Closed

Small Shops

No restriction

Special Shops

6.00am to 11.30pm


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.

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Unsustainable resource wages threaten jobs and growth, Senate told

 

FIXING the current flawed process for setting employment conditions on new resource sector projects is critical to securing ongoing investment and growth, says the industry’s national employer group AMMA in its analysis of the government’s proposed Fair Work changes.

In its detailed submission to the Senate Committee reviewing the Fair Work Amendment Bill 2014, AMMA argues that a more realistic process for new projects (or ‘greenfields’) agreement-making is vital if Australia is to secure the $208 billion in uncommitted resources investment.

“We welcome the government’s acknowledgement that handing unions’ the keys to new projects has led to excessive wages and conditions being extorted from the resource industry over the past five years,” says AMMA executive director Scott Barklamb.

“In 2013, a cook working for six months on offshore resources project construction was earning $355,000; 47% or $105k more than the same role in 2007. Barge welders now command $2180 per day, or about $396,000 for working six months (see wages chart here).

“Such inflated wages are a direct result of the former government giving unions a virtual monopoly on new project agreement-making, effectively allowing them to set their own employment conditions which the industry has had little option but to accept.

“Our country simply cannot viably compete for future mega-resources projects when our workplace relations system imposes such uncommercial and unsustainable obligations.”

Analysis from McKinsey  shows Australia’s construction labour costs are 20-30% higher than in the United States, while building a comparable LNG project in Canada costs 20-30% less.  Key Labor figures Martin Ferguson and Paul Howes have recently joined industry in warning that Australia must take this competitive threat seriously.

“The amendment bill is a positive step towards a more realistic process for new project agreements. However, AMMA is concerned about the requirement to not only better the award safety net, but to meet even higher ‘prevailing industry standards’ before new project arrangements are approved,” Mr Barklamb says.

“While perhaps intended to stop the ‘leap-frogging’ of wages from one construction contract to the next, employers fear the government’s proposed test may inadvertently lock-in the currently inflated and unsustainable wage levels as the benchmark for all future projects.

“If our nation is to compete with not only emerging resource suppliers but also comparable economies such as the US and Canada, we must allow market realities to inform the employment conditions from project to project.”

For new projects, AMMA’s submission recommends removing the proposed ‘prevailing industry standards test’ in favour of maintaining the three existing tests (the National Employment Standards safety net, the Better Off Overall Test and the public interest test).

“The three existing tests are more than adequate to protect employees without any unintended consequences. We look forward to working further with the government and all those interested in getting this critically important policy area right,” Mr Barklamb says.

www.amma.org.au

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East West Link vital for preventing congestion chaos

 

VICTORIA's peak business body has restated its support for the East West Link amid reports the project is vital to tackling Melbourne’s worsening traffic congestion.

“VECCI has been a consistent supporter of the East West Link because of the economic and social benefits it will bring, including its potential to reduce congestion,” said VECCI Chief Executive Mark Stone.

His comments come in the wake of recent commentary that warns of “unimaginable” traffic chaos if the road is not built.

Mr Stone said with forecast significant growth in population and trade over the next 25 years, the East West Link will be critical to ensuring the smooth flow of freight and residents across Melbourne. The project will also reduce the dependency on the Monash Freeway and enhance access to Tullamarine Airport for those in the south east corridor.

Mr Stone also said the Melbourne Metro rail tunnel has a valuable role to play in building a better transportation system for Melbourne.

“The improvement in the public transport service coverage and quality that Melbourne Metro will bring will open up new travel and employment options for residents, visitors and business travellers alike,” said Mr Stone.

“Improved public transport capacity, travel times and options can have major flow on benefits for business.

“It is for these reasons that VECCI encourages the State Government to progress both projects as part of an integrated, long-term transport plan for Victoria’s future.”

www.vecci.org.au

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Less than 100 days before PIN becomes the primary method of card verification in Australia

 

 

Peak retail industry body the Australian Retailers Association together with the Industry Security Initiative is encouraging cardholders to prepare for 1 August 2014 – when PIN will become the main form of card payment authorisation in Australia. 

ARA Executive Director Russell Zimmerman said the industry-wide move to expand PIN at point-of-sale (POS) and phase-out signature as a form of verification on Australian credit and debit cards is welcome move by Australian retailers.

“The phasing out of signature verification will take place over a short transition period from 1 August, as POS terminals migrate to new software.

“The move to PIN is about strengthening payment security across Australia and takes advantage of the ‘chip’ technology on Australian payment cards. This initiative will help protect consumers and retailers alike from fraudsters.

“Starting with some of the nation’s largest merchants, the move will gradually see all of Australia’s 800,000 merchant payment terminals undergo a software update to require PIN at the point of sale. For most, these costs will be covered by the terminal’s provider.

“The real change for expanding PIN usage will be a behavioural one. Habits at point of sale will require some adjustment and consideration; however, it is a move that will help safeguard against fraud, making cards even safer to use.

“While the financial institutions will be communicating the change to their customers, those businesses that may require new technology should proactively speak to their terminal provider about upgrading their equipment to ensure that they’re ready for increased PIN use by August.

“It is also important to note there will be no change to contactless or online transactions and for visitors from overseas, signature will still be a valid form of verification.

“The ARA is impressed with the Industry Security Initiative’s new folder of artwork that is now available to all merchants – all they have to do is go online, print the necessary documents and use within their own stores. This collateral aims to inform customers of the need to get ready for the switch to PIN, and to take action before August 1.

“The ARA encourages the retail industry to embrace this change as reducing fraud saves both time and money, allowing retailers to get on with the job of doing business,” 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

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Melbourne crowned world's greatest sports city for a second time

The Victoria Events Industry Council (VEIC) welcomes the news that Melbourne has been named the “Ultimate Sports City” - large city category - at the global 2014 SportsBusiness Ultimate Sports City Awards.

This is the second time Melbourne has received the award that recognises the important social and cultural role sport plays in Victoria and is further evidence that Melbourne is the ideal location for large sporting events. 

VEIC Chief Executive Dianne Smith welcomed the announcement and called for the State Government to build on this achievement by prioritising funding for key events throughout the state.

“Victoria has a proud record of successful sporting events and we have earned our place as a leading player on the global events stage," says Ms Smith.

“We urge the government to leverage this international award for the benefit of Victoria by reaffirming its financial commitment to our key major events and by exploring new ways of helping regional Victoria secure events."

Regional Victoria relies heavily on tourism, as over six per cent of jobs are in this industry.

VEIC Chairman Peter Jones echoed Ms Smith’s sentiment on the importance of events and tourism to our state.

“This award is a timely reminder of the significance of events to Melbourne’s economy. As an essential part of the tourism mix, events play a crucial role in delivering on the tourism promise for Victoria – more jobs,” says Mr Jones. 

VEIC, in conjunction with the Victoria Tourism Industry Council, continues to urge the government to examine ways of increasing the number of medium sized events, including key sporting tournaments, in regional Victoria such as the Geelong, Dandenong, Bendigo and Ballarat areas.

www.vtic.com.au

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VECCI welcomes CityLink upgrade announcement

VECCI Chief Executive Mark Stone has welcomed the announced upgrade by Transurban of CityLink from the Bolte Bridge to Melrose Drive.

“The 700 jobs, expected 30 per cent increase in capacity and anticipated cut to the travel time between the Westgate Freeway and Melbourne Airport created by this project will provide undoubted benefits for Melbourne and Victoria,” Mr Stone said.

“The final piece of the puzzle is to continue the widening of the Tullamarine Freeway all the way to the Airport and VECCI urges the State Government to ensure this happens too. 

“The East West Link, widened CityLink and Tullamarine Freeway and the Airport Rail Link will enhance Melbourne as a destination and greatly improve the movement of people and goods across our city and State.”

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

www.vecci.org.au

 

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Retailers pleased to see courts support ACCC – Federal Court declare Woolworths fuel dockets breach agreement

 

PEAK retail industry body the Australian Retailers Association (ARA) commended the Australian Competition and Consumer Commission (ACCC) for taking efficient enforcement action against Woolworths on the issue of fuel shopper dockets.

The Federal Court today found supermarket giant Woolworths guilty of breaching their agreement made last December to cap fuel shopper dockets at 4 cents per litre.

ARA Executive Director Russell Zimmerman said the ARA is pleased to see these undertakings being upheld by the courts.

"In addition to its standard offer of a 4c discount per litre for shoppers spending at least $30 in its supermarkets, Woolworths had been allowing shoppers to increase the discount to 8c per litre by spending a minimum $5 at the convenience stores attached to its chain of petrol stations – obviously an attempt to get around the agreement that the ARA, along with independent retailers, fought long and hard to reach.

"The retail industry is somewhat reassured by the shutting of the door on anti-competitive cross-subsidisation in whatever back door methods that were used to get around this agreement.

"Without the ACCC keeping a close eye on this agreement, fair competition would be destroyed, making it virtually impossible for independent retailers to have a fair go.

"It is encouraging that the ACCC has demonstrated its determination to safeguard the interests of consumers and to promote more effective competition in the fuel market. It is our hope that Woolworths now understands the consequences of such breaches," 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.

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