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Unnecessary migration zone changes must be repealed

THE Abbott Government’s move today to repeal the extension of the Migration Act to vessels servicing Australia’s offshore oil and gas projects shows it is serious about reducing red tape and attracting further resource investment to Australia, says resource industry employer group AMMA.

The Migration Amendment (Offshore Resources Activity) Repeal Bill 2014 seeks to repeal last ditch Gillard Government legislation designed to deliberately increase the regulatory burden on employers using essential overseas labour to temporarily service Australia’s offshore oil and gas projects.

“The current legislation is a relic of the 2013 election year, delivered by Labor and the Greens at the behest of trade unions whipping up false panic on foreign workers,” says AMMA executive director Scott Barklamb.

“It is set to force foreign nationals working on foreign-flagged ships in international waters to obtain an Australian visa.  This is an extraordinary proposition, only possible through an equally extraordinary expansion of Australia's migration zone. 

“Extending Australia’s migration zone to regulate offshore activities in this way was never in our national interest. It is completely at odds with how offshore resource projects are built and regulated anywhere in the world.”

Mr Barklamb says the current legislation, set to take effect from 30 June 2014, puts Australia at a competitive disadvantage as a place to do business in a critically important part of the offshore oil and gas sector.

“Labor’s legislation introduced a radical change that massively expanded Australia’s legal territory and targets highly specialised international vessels assisting with the laying of pipes and assembly of critical infrastructure in international waters,” he says.

“It was an attempt by a dying government to deliberately impose punitive red tape for red tape’s sake and pander to a union desire to control workplaces that were outside Australia’s legal reach.

“Imposing unnecessary additional costs on this critical service sector will only delay the construction of mega oil and gas projects and damage Australia’s reputation at a time when we need to demonstrate to international investors that we are a rewarding, productive and flexible place to do business.

“AMMA urges the parliament to pass this important remedial legislation as soon as possible and correct the short-sighted regulatory excess bequeathed by the previous government.

“Now is not the time to play petty party politics. It is time to make smart decisions that will support further investment and employment in Australia.”

AMMA’s 2013 submission to the federal government detailed the detrimental effect of the provisions on Australia’s resource industry, economy and employment.

www.amma.org.au

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Costs are killing retail jobs – ARA to inform national red tape conference

PEAK retail industry body the Australian Retailers Association (ARA) urges the Federal Government to give retailers the opportunity to grow the Australian economy and create employment opportunities by quickly removing unnecessary red tape costs.

ARA Executive Director Russell Zimmerman will present at the Regulatory Reform conference in Canberra tomorrow morning. Mr Zimmerman will outline key cost blowouts which are killing jobs and growth in the Australian retail sector, as well as highlight potential employment growth opportunities if these issues are addressed in a timely manner. 

“The key message we will be delivering is that retail has a real opportunity for jobs and economic growth over the next five years, however, regulatory costs have stifled that growth in the last five years. The only way we will achieve our potential is to remove costs and restrictions. 

Key points that will be raised include: 

  • Over the last five years retail has grown by around 2% p.a. while jobs have only grown by 0.2% p.a.
  • Average full time wage is now over $55,000 with regulation killing flexibility.
  • Ernst & Young report confirms 93,000 jobs have been lost due to non-collection of overseas GST and the sector could grow by 87,000 jobs in the next four years with this red tape non-compliance measure being removed.
  • ARA/ACCI report shows 70% of businesses had their red tape burden increased in the last 12 months.
  • More than 55% of all businesses indicated they had no capacity to pass the cost of regulation on to consumers.
  • The carbon tax has significantly increased costs for retailers (e.g. for bakery retailers by $20,000 p.a.)
  • Almost one quarter of businesses (23%) spent between $10,001 to $50,000 on compliance management.
  • Safety and Workers Compensation is the most complex area of compliance (55.8 %). This was followed by Employee Wages, Conditions and Superannuation (51.4%) and Tax Compliance Obligations (47.5%).

“The retail sector shows real promise as the jobs driver for the economy over the next five years, but in order to achieve this, we must reduce costs and burden on retailers. 

“I see retailers every day of the week, from single store businesses to the boardrooms of some of Australia’s largest companies, and I can confirm that all of them have done a fantastic job in surviving - they have all had to cut costs and cut jobs. They are running on the smell of an oily rag. 

“The ARA congratulates the government on their first steps to reducing burden but the bulk of the work is still in front of them,” 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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Tourism body applauds Melbourne public transport cost reduction

 

 

THE s initiative that will reduce the cost of public transport for Victorians and visitors to our state.

“This initiative will make Melbourne a more attractive destination for international and domestic tourists and encourage them to explore the many attractions our city has to offer,” says VTIC Chief Executive, Dianne Smith.

“This is a ‘win’ for Melbourne’s significant international student population and will further enhance the city’s reputation as a world-class study destination. 

“A comprehensive communications plan must accompany these changes so visitors are aware of their ticketing obligations when using public transport. 

“Ticketing for Victoria’s regions should be reformed to encourage visitors to explore more of our state and spread the associated economic benefits. 

“It is positive that this initiative has bipartisan support and we look forward to it coming into effect.”

www.vtic.com.au

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Tourism body calls for MCEC funding to stem Melbourne’s loss of international business events

VICTORIA'S lead tourism body has called for the Melbourne Convention and Exhibition Centre (MCEC) to be funded to stem Melbourne's loss of international business events.

Victoria Tourism Industry Council (VTIC) Chief Executive, Dianne Smith said:

"VTIC calls on the State Government to fund the expansion of the Melbourne Convention and Exhibition Centre (MCEC). 

"MCEC turns away 17 percent of potential clients due to lack of capacity. 

"VTIC has been a consistent advocate of the need for this project and the VTIC 2014-15 state budget submission encourages the government to prioritise funding for this expansion.

"Business events are vital to Victoria, as they contribute $1.2 billion to the economy and are responsible for 22,000 jobs.

"Work recently commenced on Sydney’s convention and exhibition centre renovation, so if the MCEC expansion does not go ahead Victoria will lose a significant amount of business to NSW. 

"Losing business events to Sydney would mean Victoria loses the very high return on investment benefits that business events provide to the events and associated sectors.

"Victoria's priority sectors, such as health and medical research, greatly benefit from the array of worldwide industry leaders that congregate in Melbourne for events, such as for the recent Diabetes World Conference or the upcoming AIDS conference.

"There is also significant flow-on benefit for local businesses such as hotels and restaurants."

* The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.1 billion to the state economy each year and employ more than 201,000 people.

www.vtic.com.au

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AMMA acknowledges Paul Howes’ leadership

 

 

NATIONAL resource industry employer group AMMA acknowledges Paul Howes’ contribution to the union movement and industrial relations landscape, following today’s announcement that he will step down as national secretary of the Australian Workers’ Union (AWU) in July.

 

“AMMA and our members wish Paul Howes all the best in the next phase of his career,” AMMA chief executive Steve Knott says.

 

“In serving the union movement as national secretary of the AWU and vice president of the ACTU, Mr Howes has achieved a great deal in what is still a developing career. I have no doubt he will make a strong impact in his next position.”

 

Mr Knott acknowledged the important role of the AWU in the hard rock mining, metal smelting and oil and gas industries; all sectors in which AMMA members operate.

 

“During Mr Howes’ AWU leadership, AMMA has enjoyed both a constructive and sometimes robust relationship with the union and its officials. However, this has generally occurred in the prism of our respective members’ best interests,” he says.

 

“Mr Howes and I both take the representation of our members very seriously and as such have had some very public disagreements. Nonetheless, we have a strong history of constructive industrial relations away from the public eye and AMMA looks forward to continuing this with the AWU leadership.

 

“AMMA has also worked positively with Mr Howes behind the scenes to progress new resource project investment, another area in which we appreciate his support and insight.”

 

Mr Knott also urged the union movement to take note of Mr Howes’ recent recognition of Australia’s uncompetitive workplace relations environment.

 

“We urge Mr Howes’ successor and fellow leaders of the union movement to heed his warning that our tumultuous industrial relations system is damaging the economy. In particular, attention should be given to his criticism of unstainable wage inflation in the offshore sector, which is not conducive to a globally exposed industry,” he says.

 

“The union movement should work with resource employers and the Abbott Government to ensure our industry remains an attractive place to invest and employ people.

 

“AMMA wishes Mr Howes well in his next career move and looks forward to continuing a productive relationship with the AWU.”

www.amma.org.au

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Retailers still fuming at FWC shock junior wage rate decision

PEAK retail industry body the Australian Retailers Association (ARA) strongly condemned the Fair Work Commission (FWC) inexplicable decision last Friday to abolish junior wage rates for 20 year old employees.

ARA Executive Director Russell Zimmerman said retailers are outraged at the decision which was based on no evidence and will kill jobs for youth as well as hinder skills developments.

“This junior wage increase will severely hit retailers financially, as well as change the face of employment for 20 year olds.

“Young people are done a disservice if our system of wage regulation locks them out of employment opportunities – and it is now clear that young people will be forced to compete against older and more experienced job-seekers.

“Unfortunately, youth unemployment is at its highest level in 11 years and with the unions case to remove junior wage rates now successful, young Australians are going to find employment near impossible.

“What retailer is going to employ a young Australian without any experience in the industry, when they can employ someone a few years older with more experience for exactly the same wage? This decision will prove detrimental to both employers and employees.

“Friday’s decision was also inconsistent with previous FWC decisions, making it obvious this was a narrow review. Previous FWC decisions have held that major changes like this require expert evidence.

“The retail sector is struggling, and although the industry is just starting to show signs of improvement in terms of retail employment, this is certainly a major setback.

“The ARA is looking into all possible appeal options and will be raising this matter directly with Minister Abetz, as well as instructing its legal team to look at all options to address this poor decision.

"The ARA will also fight against the already promised claims from the union movement to move on under 20 year old pay rates,” Mr Zimmerman said.

s $258 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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Co-operation to unlock sustained prosperity - QRC

 

Queensland Resources Council has acknowledged passage of the Regional Planning Interests Act 2014 in the Parliament as a foundation for delivering a better system of planning for regional Queensland.

Queensland Resources Council chief executive Michael Roche said the Act is the culmination of more than a decade’s work by Deputy Premier Jeff Seeney – both in opposition and in government.

"Jeff Seeney is passionate about maximising opportunities for regional Queensland communities," Mr Roche said.

"As a major driver of economic growth in regional Queensland, the minerals and energy sector welcomes this renewed focus on outcomes in terms of jobs, growth, opportunity and sustainable prosperity."

Mr Roche said that for the first time, Queensland has a system of regional plans focused on cooperation between compatible land uses. 

"While the Act creates new categories of land use priorities, the focus is on delivering practical and productive coexistence.

"The industries we represent see this as an opportunity to enhance their contribution to the government’s economic, social and environmental goals."

Mr Roche said the draft bill had benefited from intensive scrutiny by stakeholders and a multi-party Parliamentary Committee.

"The QRC’s submissions echoed suggestions made from stakeholders as diverse as the Queensland Murray-Darling Committee, the Queensland Law Society and the Queensland Farmers’ Federation.

"Two aspects of this process came through with flying colours – the contribution of the Parliamentary Committee for State Development, Infrastructure and Planning chaired by MP David Gibson – and the Deputy Premier’s willingness to hear the views of all stakeholders," Mr Roche said.

The committee’s 22 recommendations generated 110 amendments to the final Act.

Mr Roche said that in tabling the Bill, the Deputy Premier provided draft regulations for public comment that will give detail to a regional planning vision.

"QRC members will embrace the opportunity to help develop this important step recognising that coexistence is the key to unlocking sustained prosperity for regional Queensland."

www.qrc.org.au

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Fair Work junior wage Union win to devastate youth employment and crush retailers: ARA

 

PEAK retail industry body the Australian Retailers Association (ARA) has strongly condemned the Fair Work Commission (FWC) junior wage decision which risks the future of Australian retail workers after the FWC today announced that 20 year old employees will now be paid adult rates.

ARA Executive Director Russell Zimmerman said the shock decision was based on no evidence and will kill jobs for youth as well as hinder skills developments. 

"This decision is inconsistent with previous FWC decisions, making it obvious this was a narrow review. Previous FWC decisions have held that major changes like this require expert evidence.

“It is extremely concerning to business in Australia that the only substantial decisions coming out of the 2012 Review resulted in increased conditions for employees and increased costs for employers. 

“The ARA calls on the new government and Employment Minister Abetz to do everything in his power to halt this increase and fight against the already promised claims from the union movement to move on under 20 year old pay rates. 

“The former government should be ashamed at the dishonest approach it took to this case – they provided the FWC with deliberately misleading information and supported a flimsy case when they took the polar opposite approach to the ARA’s application to allow some relief on Sunday penalty rates. 

“This junior wage increase will severely hit retailers financially, as well as change the face of employment for 20 year olds. 

“We know that youth unemployment is at its highest level in 11 years, and with the unions case to remove junior wage rates now successful, young Australians are going to really struggle to find employment and support themselves through their studies. 

“What retailer is going to employ a young Australian without any experience in the industry, when they can employ someone a few years older with more experience for exactly the same wage? This decision will prove detrimental to both employers and employees.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels. Young employees will now find it extremely difficult to find vital training and development opportunities.

“The industry has already been hit with increases to Sunday wages as we transition to 100 percent on Sundays and 50 percent on Saturdays, and if the adult rate is taken down to 18 and 19 year olds then we will see an even larger percentage of youth unemployed.

“The inflexibility in wage costs has already forced some retailers to become unviable or not open on peak trading days such as Sunday.

“Weaker labour market conditions also argue for moderation in the Annual Minimum Wage Review, particularly against the backdrop of a record low youth participation rate and an almost three percent contraction in youth employment in the past year. Young people are done a disservice if our system of wage regulation locks them out of employment opportunities.

“The retail sector is struggling, and although the industry is just starting to show signs of improvement in terms of retail employment, this is certainly a blow to employment confidence,” Mr Zimmerman said.

Visit http://www.fwc.gov.au/decisionssigned/html/2014FWCFB1846.htm to view the decision

s $258 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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Government must remove tax burdens to allow Australian retailers to lead jobs growth

 

PEAK retail industry body the Australian Retailers Association (ARA) welcomed the latest Ernst and Young report which confirmed Government employment data and highlighted the fact that the retail sector will lead jobs growth through to 2020. 

ARA Executive Director Russell Zimmerman said the Ernst and Young report also indicated that if the Government doesn’t remove obstructions such as Low Value Threshold (LVT) GST in relation to goods under $1000, this predicted jobs growth and overall jobs growth in the economy will be put at risk.. 

“There are several significant cost factors that have blocked jobs growth in recent years. Clearly, as indicated in this report, overseas businesses are getting away with paying no tax while Australian retailers must pay tax – and this is costing us Australian jobs. This significant cost to employment will continue unless urgently addressed. 

“The ARA represents both large and small independent retailers, including Australian online retailers, and our members see the impacts of overseas businesses avoiding taxes every day.

"Ernst and Young estimates more than 93,000 jobs have already been foregone to the growth of online retailing, and by 2020, more than 142,000 traditional retail jobs will have been lost. It is time to act to ensure these jobs can be transitioned within Australia.

“Australia can also not afford the $6 billion in lost GST revenue to the states between now and 2020 as a result of the LVT staying at $1000. A loss of $6 billion in GST revenue to fund our much needed community and emergency services is simply unacceptable. 

“The Ernst and Young report also shows some 87,990 jobs being generated over the next four years. 

"In states such as Victoria where there have been significant manufacturing job losses, we know firsthand that retailers are creating many valuable jobs such as support roles in the retail sector to make up for the employment slack. 

“The ARA continues to meet with the Federal Government and State Treasurers on reducing the LVT GST and is seeking meetings with new State Treasurers including the new Western Australian Treasurer to finalise its reduction. 

“Based on the Ernst and Young forecasts, when the LVT GST is abolished, between $10 billion and $16.8 billion will move back to Australian online and traditional retailers from overseas businesses. This is simply too important to ignore,” Mr Zimmerman said. 

ARA Executive Director Russell Zimmerman is a key note speaker at next week’s red tape reduction forum in Canberra.

As additional measures to help the retail sector, Mr Zimmerman will be advocating the need to remove red tape, address market dominance issues through efficient delivery and competition policy along with the need to have sensible workplace penalty rates put in place through the Fair Work Commission process.

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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Phillip Island investment a win for Victoria, says tourism industry council

VICTORIA's announcement of $1.2 million in funding for the upgrade of the Nobbies Centre at Phillip Island.
 
“VTIC welcomes the State Government making tourism a priority and encourages further government investment in tourism infrastructure right across the state,” says Victoria Tourism Industry Council (VTIC) Chief Executive, Dianne Smith, who was at the launch today.
 
“It’s vital that our iconic tourism experiences are regularly refreshed. Rejuvenation of the Nobbies Centre and better activation of the surrounding boat tours will reinforce Phillip Island as one of Victoria's nature-based tourism jewels.”
 
This government funding underpins additional investment of a combined $3 million contributed by local tour operator, Wildlife Coast Cruises, and Phillip Island Nature Parks.
 
“We applaud the State Government and the private sector for working together for the benefit of visitors and the regional economy,” says Ms Smith.
 
Phillip Island relies hugely on the tourism industry, as it contributed $619 million to the economy (39 per cent of gross regional product) and employed approximately 5,000 people (33.5 per cent of regional employment) in 2011-12.
 
Phillip Island Nature Park is the biggest employer on the island.
 
Phillip Island is a popular destination for both domestic and international visitors to Victoria. The nature-based product (including the renowned penguin parade) is particularly popular with international visitors including those from China, which is one of the fastest growing tourism markets for Victoria.

www.vtic.com.au

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Int'l opportunities vital for Victoria’s continued economic growth

 

 

VICTORIA could achieve significant job creation and sustained economic growth from aviation, healthcare and international events if the areas are prioritised in the upcoming state budget, according to the state's peak employer body.
 
“Building Victoria’s international competitiveness must be a priority of the budget, so industries with demonstrated growth potential can take advantage of the opportunities presented by the Asian century,” says VECCI Chief Executive Mark Stone.
 
Mr Stone said exciting new R&D capabilities are being progressed in areas like carbon fibre and advanced materials. So too are many Victorian companies leveraging their expertise in primary production, food processing, logistics, branding and investment to help position the state as a food bowl to Asia.

“Healthcare is another good example of where our excellence in research, technology, human resources, products and services could be exported to service Asia’s growing demand for this industry,” says Mr Stone.
 
He said the government’s international engagement strategy is strongly supported by VECCI and the government should use the 2014-15 budget to accelerate and expand this effort, continuing to partner with industry to strengthen Victoria’s trade and investment presence in priority markets.
 
Mr Stone’s comments follow the release of the VECCI 2014-15 State Budget Submission: Accelerating Growth and Building Business Success.
 
Priority VECCI recommendations for building international competitiveness:
 
- Conduct a VCEC inquiry into the potential for increasing exports of Victoria’s healthcare services, including training, medical R&D and ICT healthcare management.   

- Establish an Aviation Industry Strategy that leverages off our aviation education, training, R&D commercialisation and maintenance, repair and overhaul (MRO) capabilities.    

- Prioritise funding for the expansion of the Melbourne Convention and Exhibition Centre (ensuring project completion by 2017) and attract more business events aligned to Victoria’s priority sectors (medicine, science, technology, engineering and education). 

- Host a biennial International Victoria Expo that brings exporters, relevant trade service providers, universities, international students, and chamber and consular representatives together to link Victoria’s international trade capabilities with potential partners or service providers. 

These priorities must be enacted in conjunction with a range of other recommendations to make Victoria a more competitive place to do business. VECCI also recommends raising the payroll tax threshold from $550,000 to $850,000, or alternatively reducing the payroll tax rate from 4.90 per cent to 4.70 per cent.
 
Mr Stone said new infrastructure has a vital role to play in helping business get its products and services to markets at home and abroad on time, and at low cost. 

“This is why the 2014-15 budget must not only reinforce the government’s intention to deliver Stage 1 of the East West Link, but also progress delivery of Stage 2, ensuring a future port and Western Ring Road connection,” says Mr Stone.
 
“The priority for government must be to help business succeed by making Victoria more competitive, leveraging more from our human resources to create a smarter state, ensuring we are truly international in our focus and activities, and ultimately creating a more liveable state.”
 
Read VECCI’s full budget submission at:
http://www.vecci.org.au/policy-and-advocacy/state-budget-summary

www.vecci.org.au

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