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Tasmanian Business Reporter November 2017

This month, Editor Tom O’Meara runs us through the competitive advantages of the new Tasmania First Policy, with the measure promising to give Tasmania the lowest regulated power prices in the country by 2022. You’ll also find an exclusive column by St.LukesHealth CEO, Paul Lupo, on significant changes to improve private health insurance affordability, as well as a world-first free, state-wide health program for Tasmanian employees.

This month, Editor Tom O’Meara runs us through the competitive advantages of the new Tasmania First Policy, with the measure promising to give Tasmania the lowest regulated power prices in the country by 2022.

You’ll also find an exclusive column by St.LukesHealth CEO, Paul Lupo, on significant changes to improve private health insurance affordability, as well as a world-first free, state-wide health program for Tasmanian employees.

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NOVEMBER <strong>2017</strong><br />

T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 1 2 , 0 0 0 M O N T H LY<br />

Policy offers energy advantage<br />

Musselroe Bay wind<br />

farm in the state’s<br />

North East and, inset,<br />

Energy Minister Guy<br />

Barnett.<br />

Powering<br />

towards<br />

the future<br />

By TOM O’MEARA<br />

TASMANIA will have the lowest<br />

regulated power prices in the<br />

country within five years as the<br />

government flicks the switch on a<br />

new Tasmania First Policy.<br />

New Energy Minister Guy Barnett<br />

has bitten the bullet and announced<br />

the new measure to ensure<br />

power costs for business and<br />

consumers is kept under control.<br />

The announcement comes on<br />

the back of earlier decisions resulting<br />

in a five per cent cap on<br />

power prices for consumers, a $20<br />

million fund to rebate small and<br />

medium business and return some<br />

$20 million in Hydro profits to<br />

pensioners.<br />

Overall the value of the <strong>Tasmanian</strong><br />

Market Intervention in caps<br />

and rebates is more than $120 million.<br />

The Tasmania First Policy aims<br />

to make energy a competitive advantage<br />

for the state – the Government<br />

wants the low-cost, secure<br />

supply of energy in Tasmania, to<br />

not just be a hallmark, but a reason<br />

for business to feel confident and<br />

to expand, Mr Barnett said.<br />

“We are also looking to business<br />

to relocate to Tasmania and<br />

tap into the potential that a Tasmania<br />

First Energy policy will unlock,”<br />

Mr Barnett said.<br />

“Tasmania First means two<br />

things – cheaper power and secure<br />

power.<br />

“The best thing we can do to<br />

bolster energy security is make<br />

sure we have enough in our dams<br />

as we have today.<br />

“Secondly, we are supporting<br />

more generation in Tasmania.<br />

Wind farms at Cattle Hill and<br />

Continued Page 2


2 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong><br />

NEWS<br />

Would-be leaders face off<br />

By DAVID<br />

ABBOTT<br />

THERE were no great<br />

surprises in the first official<br />

debate leading up<br />

to next year’s state election,<br />

in which Premier<br />

Will Hodgman and Opposition<br />

leader Rebecca<br />

White outlined the basis<br />

of their respective platforms.<br />

The leaders squared<br />

off in the first of a series<br />

of debates hosted by<br />

the Property Council at<br />

Wrest Point on October<br />

23.<br />

Mr Hodgman pointed<br />

to the Government’s<br />

achievements in areas<br />

of employment and economic<br />

growth in the<br />

past term, saying that<br />

if re-elected, a Liberal<br />

Government would not<br />

rest on its laurels and<br />

would continue building<br />

momentum.<br />

“This is not as good at<br />

it gets, not by a stretch,”<br />

he said. “There’s a lot<br />

more work to be done.”<br />

Ms White argued that<br />

Labor was focussed on<br />

creating a healthier and<br />

fairer Tasmania, which<br />

would in turn help the<br />

economy.<br />

“If people are well,<br />

and have employment,<br />

then the economy does<br />

well too,” said Ms White.<br />

“Investing in people,<br />

investing in what’s fair,<br />

is an investment for a<br />

better future.”<br />

Ms White denied the<br />

possibility of Labor<br />

forming a coalition with<br />

the Greens.<br />

However, as expected,<br />

the Premier was quick<br />

to point out that this was<br />

the exact message heard<br />

before the 2010 election,<br />

where a Labor-Green<br />

alliance was eventually<br />

formed.<br />

Water and sewerage<br />

was a hot topic of the debate,<br />

with Mr Hodgman<br />

indicating the Government’s<br />

plan to focus on<br />

fixing existing problems<br />

affecting local communities,<br />

such as eliminating<br />

boil water alerts in towns<br />

around the state and find<br />

funding for the development<br />

of Macquarie Point,<br />

Cameron Bay and the<br />

Debate<br />

moderator<br />

Rachel<br />

Williams with<br />

Premier<br />

Will<br />

Hodgman,<br />

Opposition<br />

Leader<br />

Rebecca<br />

White and<br />

Property<br />

Council<br />

Chief<br />

Executive<br />

Brian<br />

Wightman.<br />

troubled combined sewage<br />

and stormwater system<br />

in Launceston.<br />

Ms White said Labor’s<br />

ambitious plan to seek<br />

Industry Superannuation<br />

Fund investment had<br />

support from interested<br />

funds and would work<br />

to expedite the development<br />

of the three priority<br />

projects.<br />

Both leaders were<br />

strong in reaffirming<br />

their commitment to attracting<br />

interstate and<br />

international investment.<br />

State<br />

business<br />

sees a<br />

positive<br />

future<br />

TASMANIA’S small<br />

and medium businesses<br />

are the most confident<br />

they have been about the<br />

economy since March<br />

2010.<br />

A new Sensis <strong>Business</strong><br />

Index (SBI) survey<br />

showed the net balance<br />

rising one point to +17<br />

this quarter.<br />

The net balance score<br />

for perceptions of the<br />

economy of +17 was<br />

calculated by comparing<br />

the number who think<br />

the economy is growing<br />

(26%) to those who think<br />

it is slowing (9%).<br />

Confidence in Hobart<br />

was up 16 points to +52,<br />

while confidence in regional<br />

Tasmania was up<br />

five points to +50.<br />

Sensis CEO John Allan<br />

said <strong>Tasmanian</strong> business<br />

owners reported<br />

healthy sales with the<br />

profitability and employment<br />

indicators moving<br />

into positive territory.<br />

e dition<br />

T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 1 2 , 0 0 0 M O N T H LY<br />

<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> can now be delivered directly to your inbox. With our 30,000-strong monthly print<br />

readership, our new up-to-date digital distribution will keep <strong>Tasmanian</strong>s abreast of the all latest in local business<br />

news. From this month we will distribute electronic editions of the <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> as we go to print.<br />

To confirm your copy sign up to our mailing list via<br />

tbreditorial@fontpr.com.au<br />

Tasmania’s business newspaper is published monthly by the<br />

<strong>Tasmanian</strong> Chamber of Commerce and Industry. It is distributed<br />

to businesses in Tasmania as well as key decision-makers.<br />

Circulation: 12,000<br />

New policy puts Tasmania First<br />

From Page 1<br />

Granville Harbour have<br />

been given the go-ahead<br />

and construction will<br />

start as soon as possible.”<br />

The Government has<br />

grabbed the opportunity<br />

to work with the Federal<br />

Government on a longterm<br />

project, Battery of<br />

the Nation, that aims to<br />

double Tasmania’s generating<br />

capacity.<br />

But the main component<br />

of the Tasmania<br />

First policy is a smart,<br />

competitive approach to<br />

manage power prices.<br />

The target is to have<br />

the lowest regulated<br />

power prices in Australia<br />

by 2022 and the signs are<br />

already positive.<br />

Mr Barnett said that<br />

more could and should<br />

be done including the<br />

review the regulated<br />

power prices linked into<br />

Victoria and move away<br />

from a flawed agreement<br />

– which without government<br />

intervention via rebates<br />

and price capping,<br />

would have seen the continuation<br />

of a 65 per cent<br />

increase in power prices.<br />

Tasmania joined the<br />

National Electricity Market<br />

in 2005 under the<br />

Bacon Government and<br />

a year before the completion<br />

of the Basslink<br />

cable which physically<br />

connected Tasmania to<br />

the NEM in 2006.<br />

The NEM comprises<br />

all states and territories,<br />

expect WA and the<br />

Northern Territory. The<br />

Australian Energy Market<br />

Commission and the<br />

Australian Energy Regulator<br />

are responsible for<br />

overseeing and regulation<br />

the NEM.<br />

“Effectively, when<br />

Victorian power generators<br />

sneezed, <strong>Tasmanian</strong><br />

power customers caught<br />

a cold leading to a 65 per<br />

cent increase in power<br />

prices,” Mr Barnett said.<br />

“That’s not sustainable<br />

which is why we<br />

are looking at options to<br />

change the way prices<br />

are set,” he said.<br />

This will mean fairer,<br />

more affordable prices ...<br />

and will make a massive<br />

difference to households<br />

and small business.”<br />

Managing Editor: Tom O’Meara<br />

0418 135 822<br />

Editor: Becher Townshend<br />

0418 370 661<br />

Advertising and Special Projects<br />

Gil Sellars 0448 901 361<br />

gil@thetrustedmediaco.com<br />

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kerri@thetrustedmediaco.com<br />

Editorial & Advertising<br />

TBReditorial@fontpr.com.au<br />

www.tasmanianbusinessreporter.com.au<br />

Publisher:<br />

<strong>Tasmanian</strong> Chamber of Commerce and Industry<br />

309 Liverpool St, Hobart, TAS 7000<br />

Ph: 6236 3600 Fax: 6231 1278 admin@tcci.com.au<br />

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Ph: 6331 1144 laun@tcci.com.au<br />

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Printer: Mercury<br />

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TASMANIA’S LEADING BUSINESS PUBLICATION. CIRCULATION 17,000 MONTHLY<br />

<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong> 3<br />

B&E builds on success as building society<br />

Tassie’s new Bank of us<br />

BUILDING society B&E has<br />

announced a major overhaul<br />

of its brand as Tasmania’s<br />

newest bank.<br />

The traditional building society<br />

will become a customer-owned<br />

bank, named Bank<br />

of us, from <strong>November</strong> 1.<br />

Bank of us Chief Executive<br />

Paul Ranson and Chairman<br />

Stephen Brown Said Bank of<br />

us was <strong>Tasmanian</strong>’s only customer-owned<br />

bank.<br />

“We’ll be a different kind<br />

of bank – a customer-owned<br />

bank,” Mr Ranson said.<br />

“Our name and logo will<br />

change but our values, including<br />

putting the customer<br />

first, will remain the<br />

same.<br />

“But not everything will<br />

stay the same. We’ve been<br />

working on some new and exciting<br />

products - products that<br />

are not tricky or complicated,<br />

that are great value, with competitive<br />

rates and that are designed<br />

by <strong>Tasmanian</strong>s for <strong>Tasmanian</strong>s.”<br />

Bank of us has more than<br />

$700 million in assets, 30,000<br />

customers and a statewide retail<br />

branch network.<br />

B&E approved $169 million<br />

worth of loans in 2016-17; its<br />

loan portfolio increased by<br />

$47.6 million to $630.4 million;<br />

total deposits increased<br />

by $29 million to finish the<br />

financial year at $684 million.<br />

“Pleasingly, our growth<br />

is 100 per cent derived from<br />

the <strong>Tasmanian</strong> market,” Mr<br />

Brown said.<br />

Mr Ranson said building<br />

societies and banks are guided<br />

by the same rules and regulations.<br />

“The term ‘building society’<br />

is less relevant to people<br />

today.<br />

“When you use the word<br />

‘bank’, people immediately<br />

Bank of us<br />

Chief<br />

Executive Paul<br />

Ranson, left,<br />

and<br />

<strong>Business</strong><br />

Banking<br />

Manager Kris<br />

Wye launch<br />

the state's<br />

only<br />

customerowned<br />

bank.<br />

understand what it is and what<br />

it does.<br />

A customer-owned bank<br />

has all the safety and security<br />

you would expect of a bank,<br />

while keeping its customer-first<br />

values,” Mr Ranson<br />

said.<br />

“Unlike our publicly-listed<br />

peers, that are owned<br />

by external shareholders,<br />

we will be 100 per cent<br />

owned by our customers<br />

and just as we do today,<br />

we will reinvest any<br />

profits into the business to<br />

provide a better banking experience<br />

for them.”<br />

NEWS<br />

Airport<br />

traffic<br />

project<br />

released<br />

THE design for the new $30<br />

million Hobart Airport Interchange<br />

on the Tasman Highway<br />

has been released for<br />

public consultation.<br />

The project involves a four<br />

lane interchange to replace the<br />

existing roundabout in a bid<br />

to better connect Cambridge,<br />

Seven Mile Beach and the airport<br />

precinct.<br />

Federal Infrastructure and<br />

Transport Minister Darren<br />

Chester said a 1.6-kilometre<br />

section of Tasman Highway<br />

would be upgraded and the<br />

dual carriageway extended<br />

further east, while a four-lane<br />

overpass with the realigned<br />

Holyman Avenue and Kennedy<br />

Drive would improve connections<br />

to and between the<br />

airport and Cambridge Park.<br />

<strong>Tasmanian</strong> Acting Infrastructure<br />

Minister Michael<br />

Ferguson said a new, signalised<br />

two-lane off-ramp to the<br />

airport and a continuous-flow<br />

on-ramp from the airport<br />

would provide for the future.<br />

Tenders are expected to be<br />

called in mid-2018, with construction<br />

anticipated to start in<br />

late 2018.<br />

Freight milestone sees Tasrail on track<br />

TASRAIL has achieved a<br />

new benchmark, with the total<br />

number of tonnes freighted<br />

across Tasmania’s rail network<br />

exceeding three million<br />

in 2016/17.<br />

It’s the first time TasRail<br />

has freighted three million<br />

tonnes in a 12-month period.<br />

TasPort’s Annual Report<br />

revealed it achieved considerable<br />

freight growth in the financial<br />

year with total tonnes<br />

of coal delivered by rail increasing<br />

by 43 per cent, the<br />

total net tonnes of cement<br />

freighted by rail increasing by<br />

9 per cent and the total container<br />

volumes (TEU) up 7<br />

per cent.<br />

TasRail CEO Damien White<br />

said three million tonnes of<br />

freight on rail equated to at<br />

least 140,000 fewer heavy vehicle<br />

movements on our roads<br />

and 55,000 fewer tonnes of<br />

harmful emissions into our environment.<br />

“I am extremely proud of the<br />

ongoing commitment of the<br />

entire TasRail team to safety,<br />

innovation, leadership and excellence,”<br />

Mr White said.<br />

“TasRail has come a<br />

long way since its inception<br />

in December 2009<br />

and our achievements in<br />

the 2016/17 financial year show<br />

that many <strong>Tasmanian</strong>s now<br />

regard rail as a safe, reliable<br />

and competitive alternative to<br />

road transport.”<br />

Other significant accomplishments<br />

noted in the Annual<br />

Report include:<br />

• a 25 per cent increase in<br />

shiploading;<br />

• $52.2 million capital spend<br />

on rail infrastructure;<br />

• the largest intake of trainee<br />

drivers since TasRail’s inception;<br />

and<br />

• a 42 per cent increase in<br />

workforce gender diversity.<br />

For the first<br />

time, TasRail<br />

has moved<br />

three million<br />

tonnes<br />

of freight in<br />

a 12-month<br />

period.<br />

ADVERTISEMENT<br />

Elise<br />

Archer<br />

Your local Liberal<br />

Member for Denison<br />

62 Main Rd, Moonah<br />

Please contact me:<br />

p: 6212 2210<br />

e: elise@elisearcher.com<br />

m: PO Box 426, Moonah, 7009<br />

www.elisearcher.com<br />

Authorised by Elise Archer, 62 Main Rd, Moonah, 7009<br />

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4 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong><br />

THOUGHT LEADERSHIP<br />

www.tcci.com.au<br />

City shows past their use-by date<br />

Michael<br />

Bailey<br />

TCCI Chief Executive<br />

AS quickly as you can<br />

consume a dagwood dog<br />

and spill sauce down<br />

your fresh white shirt,<br />

the events synonymous<br />

with such culinary offering<br />

are going out of style.<br />

The major city shows<br />

are on struggle street –<br />

the departure of the<br />

Devonport Show from<br />

the calendar this year<br />

due to financial challenges<br />

and the disappointing<br />

attendance numbers at<br />

Launceston perhaps suggest<br />

the shows in their<br />

current format are not viable<br />

any more.<br />

The overarching issue<br />

here is that people<br />

are just not attending the<br />

shows like they used to.<br />

The Rural Youth organisation’s<br />

agricultural<br />

field days, Agfest,<br />

has taken the place of<br />

much of the connection<br />

to farming and easy, and<br />

historically cheap, access<br />

to theme parks on<br />

the mainland and international<br />

has probably<br />

put a dent in the wonder<br />

of sideshow alley – once<br />

the “Disneyland” dream<br />

for many a child who had<br />

saved up their coins all<br />

year to attend.<br />

Some of the regional<br />

weekend shows are<br />

booming – if the city<br />

shows were to reduce<br />

the days they operate and<br />

readjust their thinking<br />

so that we can remove<br />

the legislated mid-week<br />

“Show Day” holidays,<br />

we might actually create<br />

a win-win for everyone.<br />

In my opinion, it is<br />

time to abolish the local<br />

show holidays once and<br />

for all.<br />

Before you start to<br />

panic at the audacity of<br />

suggesting we all lose<br />

a much-needed day off,<br />

there is a solution to ensure<br />

public holidays aren’t<br />

diminished.<br />

I believe we should<br />

make the Northern <strong>Tasmanian</strong><br />

Recreation Day<br />

and Southern Tasmania’s<br />

Regatta Day statewide<br />

days off – no one misses<br />

out on a public holiday<br />

and we consolidate<br />

the regional holidays for<br />

the shows into statewide<br />

days.<br />

I have been talking for<br />

years about the frustration<br />

for business at the<br />

local show holidays –<br />

how they impact business,<br />

are confusing from<br />

an IR perspective and<br />

slow the state’s economy.<br />

For example, the number<br />

one question hitting<br />

the TCCI’s industrial<br />

relations telephone help<br />

line across this time in<br />

Tasmania is how local<br />

holidays apply.<br />

Many people query<br />

what the boundaries are<br />

of the holiday region.<br />

For example does Deloraine<br />

get the Laun-<br />

Tasmania report launched<br />

THE <strong>Tasmanian</strong> Chamber<br />

of Commerce and<br />

Industry has launched its<br />

annual Tasmania Report<br />

roadshow.<br />

The report, prepared<br />

by world-renowned<br />

economist, Saul Eslake,<br />

will be publically released<br />

at events around<br />

the state on Monday<br />

December 11, <strong>2017</strong>, in<br />

Show holidays need to be removed and public holidays extended statewide for Recreation and Regatta Days to improve<br />

business consistency.<br />

Hobart, Launceston and<br />

Devonport.<br />

Details and ticket<br />

sales at www.tcci.com.<br />

au/Events/Tasmania-Report-<strong>2017</strong><br />

Vital<br />

role for<br />

safety<br />

officers<br />

By CRAIG<br />

HORTLE<br />

MANY businesses in<br />

Australia have fallen foul<br />

of the WHS legislation in<br />

Australia.<br />

Who is ultimately responsible<br />

for the compliance<br />

of a business?<br />

What responsibilities<br />

do board members, directors,<br />

CEOs, company<br />

secretaries and partners<br />

or business owners have?<br />

In Tasmania, the<br />

Work, Health and Safety<br />

(WHS) laws state that<br />

a person conducting a<br />

business or undertaking<br />

(PCBU) has a duty under<br />

the WHS act to provide a<br />

safe worksite.<br />

This applies not only<br />

to workers but those who<br />

could be affected by the<br />

work activity – such as<br />

I have been talking<br />

for years about the<br />

frustration for<br />

business at the local<br />

show holidays<br />

the public.<br />

A PCBU can be individual<br />

or an entity.<br />

In the case where it is<br />

a large entity the individuals<br />

who have responsibility<br />

for WHS are called<br />

officers.<br />

In smaller businesses it<br />

will be the owner who is<br />

identified as the officer.<br />

These are defined in<br />

larger organisations as<br />

individuals who have the<br />

following identifiers:<br />

• those who participate<br />

in making decisions affecting<br />

the whole or a<br />

substantial part of the organization;<br />

• those with capacity<br />

to significantly affect the<br />

ceston Show Day or<br />

Devonport Show Day as<br />

a public holiday?<br />

Another common query<br />

is what the pay rate<br />

for a local holiday is<br />

and does it apply in all<br />

awards?<br />

And we all know that<br />

business in Tasmania has<br />

a slower day if there is a<br />

regional holiday occurring<br />

somewhere in the<br />

state.<br />

This is even worse<br />

during the bizarre half of<br />

Tasmania Recreation and<br />

Regatta Days.<br />

A restructure is overdue<br />

and in time I think<br />

everyone will reap the<br />

rewards.<br />

Who is<br />

ultimately responsible<br />

for<br />

compliance<br />

of a business?<br />

organisation’s financial<br />

standing; and<br />

• those on whose instructions<br />

or wishes directors<br />

are accustomed<br />

to act.<br />

If you have any of the<br />

above identifiers, you are<br />

considered to be an officer<br />

and have a duty under<br />

the WHS Act.<br />

What does this mean<br />

for you?<br />

You are required by<br />

the act to ensure that the<br />

PCBU complies with the<br />

act.<br />

This includes:<br />

• keeping up to date<br />

with WHS information;<br />

• ensuring there are<br />

resources and processes<br />

available to address<br />

WHS issues;<br />

• understand the operation<br />

of the business; and<br />

• ensure there is a system<br />

for the business to<br />

meet its duties under the<br />

WHS legislation.<br />

If you are a self-employed<br />

person, in a partnership,<br />

a board member,<br />

or working for a large<br />

business in a high-level<br />

management role, you<br />

are likely to have the position<br />

of an officer under<br />

the WHS act.<br />

This would mean you<br />

have the responsibility<br />

to ensure that you have a<br />

safe workplace and a safe<br />

system of work.<br />

For more information<br />

on WHS, please<br />

contact Craig Hortle or<br />

Janelle Whitehouse at<br />

the TCCI on 1300 559<br />

122 or email safety@<br />

TCCI.com.au.


<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong> 5<br />

THOUGHT LEADERSHIP<br />

Future suppliers may be further afield<br />

Seek other opportunities<br />

Brett<br />

Charlton<br />

Agility Logistics<br />

MY view of the world<br />

these days is a little hazy.<br />

My optometrist says<br />

it is an evolving stigmatism<br />

in one of my eyes<br />

causing a little more<br />

strain than I am used to,<br />

but I have another theory.<br />

I think the level of<br />

frustration at some of<br />

the logistical challenges<br />

we are facing these days<br />

has clouded my rose-coloured<br />

glasses somewhat.<br />

Don’t get me wrong,<br />

the future is so bright that<br />

I have polarized my reading<br />

glasses.<br />

But the tools needed<br />

to get the job done have<br />

not quite caught up with<br />

the lofty aspirations of<br />

smooth sailings of export<br />

and import traded goods<br />

around this blue bubble<br />

that we float on.<br />

I am using this article<br />

to vent so that shippers<br />

are aware of what is frustrating<br />

me at the moment<br />

…. if it is frustrating me,<br />

then it will definitely be<br />

frustrating you …. if not<br />

now, then soon.<br />

If you are an importer<br />

out of Asia, and who<br />

isn’t these days, then at<br />

the time of reading this<br />

article you are one of<br />

many on the planet who<br />

are pulling their hair out<br />

at the space restraints.<br />

We need to think of<br />

the shipping lines like<br />

OPEC.<br />

If they don’t like the<br />

price of oil they will<br />

tighten the lever that restricts<br />

the flow to drive<br />

the prices up.<br />

This is happening now<br />

in shipping.<br />

The capacity has not<br />

been increased in line<br />

with the volume and after<br />

years of the lines not<br />

making money, consolidation<br />

through acquisitions<br />

and a reduction of<br />

services is resulting in<br />

less space, higher prices<br />

and disappointment in<br />

bookings being rolled.<br />

Don’t think you are<br />

immune if you are a less<br />

than a container load<br />

(LCL) importer or exporter<br />

either – the world<br />

of consolidations sees<br />

what used to be many<br />

smaller consolidation<br />

depots now merge into<br />

two or three large depots<br />

in Melbourne.<br />

Of late we have been<br />

experiencing delays of<br />

up to five hours lining up<br />

to collect or deliver cargo<br />

– to the point where<br />

transport companies are<br />

now demanding a surcharge<br />

to collect goods.<br />

Congestion in the Port of Melbourne one part of importer’s challenges.<br />

Picture courtesy AMSA<br />

Of course this affects<br />

productivity and costs.<br />

Importers especially<br />

need to allow extra days,<br />

(particularly at this time<br />

of year) in their modelling<br />

due to this congestion<br />

in Melbourne.<br />

Couple congestion in<br />

Melbourne, lack of space<br />

Local WR experts at your service<br />

WITH the invasion by<br />

mainland consultation<br />

ment is completely up to See the TCCI website,<br />

firms into the <strong>Tasmanian</strong> Abbey<br />

you and we have a large or contact the TCCI direct<br />

on 1300 59 122 or<br />

landscape, businesses<br />

variety of ways that you<br />

are asking themselves<br />

can engage our services: workplacerelations@<br />

“what option is the best George<br />

• membership – we tcci.com.au<br />

for me?”<br />

have a number of comprehensive<br />

member-<br />

As always this is a<br />

Workplace Relations<br />

personal decision for<br />

ship levels that you can<br />

each business alone<br />

choose based on your<br />

but we thought it was a tomised to suit your pretation, performance business needs.<br />

timely opportunity to remind<br />

business and staff; management, policies All information can be<br />

business about the<br />

<strong>Tasmanian</strong> Chamber of<br />

Commerce and Industry<br />

and our Workplace Relations<br />

and Workplace<br />

Health and Safety services.<br />

• assistance and advice<br />

on legal compliance<br />

such as the Fair<br />

Work Act 2009, Modern<br />

Awards and the like;<br />

• assistance with planning,<br />

drafting, negotiating,<br />

and procedures (drafting<br />

and implementation) and<br />

the like;<br />

• assistance with Fair<br />

Work Commission matters<br />

– as an employer<br />

organisation we are<br />

found on our website or<br />

please call our friendly<br />

membership team.<br />

• retainer arrangement<br />

– specifics by negotiation;<br />

• our Workplace As-<br />

The WR team at<br />

lodgement, review automatically granted sured product – this<br />

TCCI can offer you:<br />

• peace of mind with<br />

WR and WHS issues –<br />

if you are in doubt pick<br />

and interpretation of Enterprise<br />

Agreements;<br />

• workplace investigations<br />

such as disciplinary,<br />

permission to appear in<br />

the Commission whereas<br />

other representatives<br />

need to seek permission<br />

product provides complete<br />

peace of mind with<br />

a $0 excess insurance<br />

product and a comple-<br />

up the phone or send an<br />

grievances etc; (and it may not be grantmentary<br />

TCCI mem-<br />

email and we can help; • advice regarding ed);<br />

bership and is a product<br />

• regular hot topic information<br />

sessions on<br />

WHS issues such as<br />

policies and procedures<br />

• advice from a qualified<br />

lawyer but at discounted<br />

which is developed,<br />

owned and delivered in<br />

WR and WHS around (drafting and implementation),<br />

membership Australia by state cham-<br />

the state which are free<br />

consultation, rates; and<br />

bers.<br />

for members and a nominal<br />

fee for non-members;<br />

identifying hazards and<br />

the like;<br />

• knowledge that if<br />

you need us we are only<br />

In a nutshell there<br />

isn’t a lot in relation to<br />

• advice regarding a phone call, email or car WR and WHS that we<br />

• education and training<br />

which can be cus-<br />

WR issues such as rates<br />

of pay, legislative inter-<br />

ride away.<br />

Our level of involvecan’t<br />

assist with so if in<br />

doubt ask.<br />

ex-Asia, rising pricing in<br />

rates (as well as a plethora<br />

of surcharges coming<br />

out of the ether – think<br />

“infrastructure levy, toll<br />

increases, domestic shipping<br />

increases, etc”) the<br />

sad story is that the pricing<br />

model traders have<br />

been using needs to be<br />

checked and re-accounted.<br />

That said, whenever<br />

there is adversity there<br />

is opportunity and the<br />

clever people are always<br />

looking to see where this<br />

may lie .... maybe there<br />

are alternative suppliers<br />

other than in Asia?<br />

www.tcci.com.au<br />

Set up correct<br />

sale solutions<br />

Dean<br />

Demeyer<br />

<strong>Business</strong> Broker<br />

IS your business ready for sale at the price<br />

you expect?<br />

Recently I wrote an article for the <strong>Tasmanian</strong><br />

<strong>Business</strong> <strong>Reporter</strong> in which I quoted<br />

some statistics about the number of baby<br />

boomer small businesses that would come<br />

onto the market now and over the next 10<br />

years.<br />

The upshot was 75 per cent of those businesses<br />

would not be sold for the price the<br />

owners expect.<br />

They will either sell cheaply, close completely<br />

or the owners will battle on indeterminately<br />

– none of these outcomes desirable.<br />

I regularly see business owners who have<br />

decided it’s time to sell, but their business is<br />

not ready for sale at the price they expect.<br />

If the business is not attractive to purchasers,<br />

you will have to lower your price.<br />

Your business will be competing with all<br />

the other businesses for sale on the market<br />

at that time. In the worst case, the business<br />

could sit on the market for two or three years<br />

and then sell for an inadequate amount.<br />

The best solution is to have a professional<br />

business advisor look at the business and assess<br />

whether it’s ready to list for sale at your<br />

desired selling price.<br />

It’s important to understand what assets are<br />

actually being sold and try to maximise their<br />

respective values.<br />

Almost always businesses are selling physical<br />

plant and equipment, trading stock and a<br />

cash flow (goodwill).<br />

The most time spent by the buyer (and<br />

their accountant) on due diligence, is assessing<br />

the value of the goodwill in terms of<br />

future risk. For example, how much of the<br />

forward revenues are contracted versus how<br />

much is one-off revenue. In other words,<br />

will the revenue still be there after I buy this<br />

business?<br />

Lets look at a quick case study. Tim wants<br />

$250,000 for his business. The assets are two<br />

delivery trucks worth $70,000 and $180,000<br />

as goodwill – all his regular customers. He<br />

shows a net profit of $60,000 after paying<br />

himself a market salary.<br />

Tim must prove to a buyer that the revenue<br />

from these customers will stay the same.<br />

If they are ad-hoc day-to-day customers,<br />

this will devalue the goodwill because the<br />

new owner will be competing with every other<br />

delivery service and the buyer will want a<br />

discounted buying price.


6 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong><br />

THOUGHT LEADERSHIP<br />

www.tcci.com.au<br />

Changes improve affordability<br />

BY StLUKES HEALTH CEO<br />

PAUL LUPO<br />

ON October 13 the Federal<br />

Government announced<br />

what most<br />

believe to be the most<br />

significant changes the<br />

industry has seen in the<br />

last 20 years, aimed at<br />

improving affordability<br />

and encouraging greater<br />

youth participation in<br />

private health insurance.<br />

The changes impacting<br />

<strong>Tasmanian</strong>s who<br />

hold private health insurance<br />

over the next 18<br />

months relate to prostheses<br />

reform, which looks<br />

to address some aspects<br />

of affordability, and for<br />

young <strong>Tasmanian</strong>s not<br />

holding cover, through<br />

discounts and reduced<br />

waiting times to access<br />

mental health services.<br />

As a not-for-profit<br />

health insurer, St-<br />

LukesHealth welcomes<br />

the Federal Government’s<br />

efforts to reduce<br />

the cost of prosthesis to<br />

privately insured members,<br />

which is particularly<br />

relevant to <strong>Tasmanian</strong>s.<br />

In <strong>2017</strong>, prosthesis<br />

costs represented 14 per<br />

cent of all hospital benefits<br />

paid by all health<br />

funds in Australia, and<br />

in Tasmania due to our<br />

ageing demographic this<br />

cost was 17 per cent.<br />

This reform means that<br />

prices regulated by the<br />

Federal Government and<br />

charged by manufacturers<br />

of medically implanted<br />

devices will fall, with<br />

savings passed directly<br />

on by health insurance<br />

funds to members.<br />

Savings in 2018 are<br />

estimated by the Federal<br />

Government at $188m<br />

with full savings of<br />

$304m annually by 2020.<br />

StLukesHealth sees<br />

this reform as a good<br />

starting point if we are<br />

to address issues around<br />

affordability, but we believe<br />

this needs to go<br />

much further given that<br />

according to official data<br />

for 2014-15, the difference<br />

between what consumers<br />

were forced to<br />

pay for medically implantable<br />

devices in private<br />

hospitals was $729<br />

million more than would<br />

have been the case if<br />

St.Lukes Health CEO Paul Lupo welcomes changes to the industry.<br />

public hospital prices<br />

were applied.<br />

When adding procedures<br />

in day hospitals, as<br />

well as private patients<br />

in public hospitals, the<br />

industry believes this<br />

figure is projected to<br />

approach $1 billion in<br />

<strong>2017</strong>-18.<br />

Therefore we will continue<br />

to advocate on behalf<br />

of our members to<br />

right this inequity and assist<br />

health insurers minimise<br />

the extent of future<br />

premium increases.<br />

On making health insurance<br />

more attractive<br />

for younger <strong>Tasmanian</strong>s,<br />

the Government’s<br />

reforms allow private<br />

health insurers to offer<br />

discounts of up to 10 per<br />

Overall these<br />

reforms are<br />

a good start<br />

and should<br />

be welcomed<br />

by all<br />

<strong>Tasmanian</strong>s<br />

cent on hospital cover for<br />

18 to 25-year olds.<br />

In response to an increased<br />

demand for access<br />

to mental health services,<br />

changes to waiting<br />

period rules for hospital<br />

cover will mean younger<br />

<strong>Tasmanian</strong>s can more<br />

easily access services<br />

when they most need it.<br />

This need was highlighted<br />

in the 2016<br />

<strong>Tasmanian</strong> Population<br />

Health Survey that reported<br />

13.7 per cent of<br />

all <strong>Tasmanian</strong>s reported<br />

very high or high levels<br />

of psychological distress,<br />

with most distress<br />

seen in younger <strong>Tasmanian</strong>s<br />

aged 18 to 24<br />

years.<br />

In conclusion, the Federal<br />

Minister’s prosthesis<br />

reform is welcomed,<br />

but it needs to go further<br />

if we are to see sustained<br />

savings put back in the<br />

pockets of <strong>Tasmanian</strong><br />

members, and a growth<br />

in the number of <strong>Tasmanian</strong>s<br />

with private health<br />

insurance, which is good<br />

for the sustainability of<br />

the entire health system.<br />

In addition, from April<br />

2019 the minister has allowed<br />

health insurers<br />

to offer younger people<br />

discounts to encourage<br />

participation in private<br />

health, and importantly<br />

from April 2018, greater<br />

access to mental health<br />

services for which there<br />

is a growing demand.<br />

Overall these reforms<br />

are a good start and<br />

should be welcomed by<br />

<strong>Tasmanian</strong>s.<br />

Established in 1952,<br />

St.LukesHealth is a<br />

<strong>Tasmanian</strong> not-forprofit<br />

health insurer,<br />

with more than 30,000<br />

policies covering<br />

more than 62,000<br />

people Australia-wide.<br />

To join, switch or get<br />

a cover comparison<br />

call 1300 651 988.<br />

170611


<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong> 7<br />

THOUGHT LEADERSHIP<br />

www.tcci.com.au<br />

Here’s cheers to Hellyers Road<br />

Sally<br />

Chandler<br />

Tradestart Adviser<br />

Much food for thought<br />

in latest ABS job figures<br />

TWO sets of employment<br />

figures were released<br />

on the same day<br />

recently – both providing<br />

<strong>Tasmanian</strong>s with plenty<br />

of food for thought.<br />

The latest figures from<br />

the Australian Bureau<br />

of Statistics indicated<br />

that total employment<br />

across Tasmania was up<br />

but full-time employment<br />

had unfortunately<br />

slipped backwards.<br />

The unemployment<br />

rate is down to 5.9 per<br />

cent and the participation<br />

rate is steady at 61.2 per<br />

cent, an improvement<br />

on where we were 12<br />

months ago.<br />

But it’s the shift from<br />

full-time to part-time<br />

employment that has attracted<br />

the most interest<br />

from commentators.<br />

Journalist Sean Ford<br />

from the Advocate examined<br />

full-time jobs<br />

figures across the last decade.<br />

THE winner of the <strong>2017</strong><br />

<strong>Tasmanian</strong> Exporter of<br />

the Year Award is Hellyers<br />

Road Distillery from<br />

Burnie.<br />

General Manager and<br />

master distiller Mark<br />

Littler accepted the<br />

prestigious award, as<br />

well as the EFIC Small<br />

<strong>Business</strong> award.<br />

The annual export<br />

awards event is Tasmania’s<br />

highest recognition<br />

for our exporters of <strong>Tasmanian</strong><br />

goods and services.<br />

Hellyers Road Distillery<br />

has been producing<br />

varieties of single malt<br />

whisky since 1999 and<br />

since then has grown<br />

to become Australia’s<br />

number one seller of single<br />

malt whisky worldwide.<br />

It is the southern<br />

hemisphere’s largest<br />

producer of single malt<br />

whisky and also produces<br />

vodka and liqueurs.<br />

The distillery began<br />

exporting in 2009 after<br />

establishing a partnership<br />

with French distributor<br />

La Maison du<br />

Whisky. Its whisky is<br />

currently available in<br />

over 20 European coun-<br />

“The state has lost a<br />

net 13,600 full-time jobs<br />

since September 2008 at<br />

the start of the Global Financial<br />

Crisis,” Mr Ford<br />

wrote.<br />

He also noted that<br />

across the same period,<br />

total jobs had actually<br />

increased by 4900 “due<br />

to a surge in part-time<br />

work”.<br />

That is a huge shift in<br />

the profile of Tasmania’s<br />

labour force.<br />

We know our tourism<br />

and hospitality sectors<br />

are booming and parttime<br />

work in those sectors<br />

are inevitable, but<br />

it’s full-time jobs we<br />

should be striving to create.<br />

It’s full-time work that<br />

will give <strong>Tasmanian</strong>s<br />

enough income to live<br />

comfortably and it’s fulltime<br />

work that will entice<br />

former residents to return<br />

to further their careers.<br />

Of course, there is no<br />

easy answer but Labor<br />

is determined to address<br />

this issue with policy positions<br />

that will underpin<br />

full-time employment.<br />

We want to work<br />

closely with industry to<br />

know what barriers are<br />

stopping them from taking<br />

on workers full-time<br />

as opposed to part-time.<br />

The second set of employment<br />

figures that<br />

caught our eye were the<br />

latest updates from Tasmania’s<br />

public sector.<br />

The public service is<br />

actually larger than it<br />

was when the Liberals<br />

came to power in 2014.<br />

The data shows there<br />

are now 520 additional<br />

FTEs (full-time equivalents)<br />

than in June 2014.<br />

These figures are particularly<br />

surprising given<br />

we know, on coming to<br />

power, the Liberal Government<br />

reduced the size<br />

of the public sector by<br />

861 FTEs.<br />

From a value-for-money<br />

point of view, I think<br />

it’s fair to question<br />

whether paying more<br />

than $32 million for redundancies<br />

was efficient<br />

when less than 3 years<br />

later the workers have<br />

been replaced.<br />

Continued page 8<br />

tries, in Japan, India,<br />

China, Argentina and<br />

Vanuatu.<br />

Hellyers Road Distillery<br />

is a fully-owned<br />

subsidiary of <strong>Tasmanian</strong><br />

company Betta Milk.<br />

Attached to the distillery<br />

in Burnie is a Visitor<br />

Interpretation Centre<br />

which welcomes over<br />

40,000 visitors each<br />

year, many of whom are<br />

overseas tourists and<br />

some who make the specific<br />

pilgrimage to visit<br />

the place where their<br />

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favourite whisky is produced.<br />

Hellyers Road Distillery<br />

whiskies have been<br />

recognised for their<br />

quality on the world<br />

stage winning numerous<br />

awards in Europe and<br />

Australia.<br />

In 2013 the Distillery’s<br />

Pinot Noir Finish<br />

whisky was judged Best<br />

New World Whisky at<br />

Whisky Live Paris and<br />

in 2015 the same whisky<br />

was anointed a Global<br />

Whisky Master in the<br />

Global Whisky Master<br />

Awards (UK).<br />

In 2016, Hellyers<br />

Road’s Port Cask Matured<br />

single malt won Gold at<br />

the World Whisky Masters<br />

and earlier this year<br />

its Master Series Peated<br />

whisky won Gold at the<br />

Australian Distilled Spirits<br />

Awards.<br />

Other Export Award<br />

category winners were<br />

McKay Timber who accepted<br />

the DFAT Agribusiness<br />

Award, ISW who<br />

won the Aus-Industry<br />

Hellyers Road<br />

Distillerty General<br />

Manager and<br />

master distiller<br />

Mark Littler.<br />

<strong>Business</strong> Services Award,<br />

the Austrade Digital Technologies<br />

Award went to<br />

Echoview Software, the<br />

TasPorts Regional Exporter<br />

Award went to Premium<br />

Fresh Tasmania, and,<br />

the Austrade Education<br />

and Training Award was<br />

won by Australian Honey<br />

Products.<br />

All category winners<br />

of the <strong>2017</strong> <strong>Tasmanian</strong><br />

Export Awards<br />

now progress to the<br />

<strong>2017</strong> Australian Export<br />

Awards being held in<br />

Canberra on December<br />

5, to compete against the<br />

category winners from<br />

all other States and territories.<br />

We wish them well!<br />

For international trade<br />

and investment assistance<br />

contact the<br />

TCCI’s TradeStart Adviser,<br />

Sally Chandler,<br />

at sally.chandler@tcci.<br />

com.au or phone 1300<br />

559 122.


8 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong><br />

THOUGHT LEADERSHIP<br />

www.tcci.com.au<br />

State aids bids for defence spending<br />

TASMANIA has a proud<br />

history of producing<br />

unique, high-quality<br />

products and solutions<br />

for highly specialised<br />

markets.<br />

The Turnbull Government’s<br />

decision to use<br />

its $30 billion annual<br />

defence spend to grow<br />

manufacturing in Australia<br />

is creating exciting<br />

new opportunities for<br />

<strong>Tasmanian</strong> companies<br />

and the Hodgman Government<br />

is helping them<br />

to put their best foot forward.<br />

In October, I attended<br />

the Pacific <strong>2017</strong> international<br />

naval and marine<br />

expo in Sydney with<br />

seven <strong>Tasmanian</strong> companies,<br />

our new Defence<br />

Advocate Rear Admiral<br />

(Retd) Steve Gilmore<br />

and State Growth representatives,<br />

promoting<br />

Tasmania’s unique ca-<br />

pabilities to buyers from<br />

around the globe including<br />

prime contractors<br />

bidding for major Australian<br />

defence contracts.<br />

The <strong>Tasmanian</strong> delegation<br />

included companies<br />

with established reputations<br />

in defence and<br />

others with innovative<br />

new products approaching<br />

this market for the<br />

first time.<br />

Liferaft Systems Australia<br />

supplies marine<br />

evacuation systems to<br />

the US, New Zealand,<br />

Netherlands and French<br />

Navies and has recently<br />

equipped the Royal Navy’s<br />

new Queen Elizabeth<br />

Class aircraft carrier.<br />

CBG Moonraker supplies<br />

communications<br />

antenna systems to the<br />

Italian Navy, and CBG<br />

thermal protection and<br />

signature management<br />

Roger Jaensch, centre, and Rear Admiral (Rtd) Steve Gilmour, right, give Federal Minister<br />

Christopher Pyne the good oil on <strong>Tasmanian</strong> innovation at Pacific <strong>2017</strong>.<br />

products to land and marine<br />

defence and civil<br />

markets.<br />

Taylor Bros is a third<br />

generation <strong>Tasmanian</strong><br />

company which has already<br />

made its mark in<br />

defence, providing internal<br />

fitout for the Australian<br />

Navy’s submarine<br />

and shipbuilding program<br />

in South Australia,<br />

among other major clients.<br />

The Australian Maritime<br />

College and its research<br />

arm AMC Search<br />

have global reputations<br />

in the maritime sector<br />

and used Pacific <strong>2017</strong> to<br />

launch their new study<br />

centre at the Australian<br />

FIND THE<br />

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National Maritime Museum<br />

on Darling Harbour.<br />

Fiomarine has developed<br />

a remotely activated<br />

marine buoy used to<br />

retrieve assets from the<br />

sea floor; Pivot Maritime<br />

International is<br />

Australia’s only manufacturer<br />

of portable marine<br />

simulators; One Atmosphere<br />

has invented<br />

an emergency buoyancy<br />

system for helicopters<br />

operating over water;<br />

and PFG’s Aquatruck<br />

range includes durable<br />

workboats for police and<br />

coastal patrol work.<br />

Over three days, our<br />

stand hosted ministers<br />

and dignitaries from<br />

Australian and foreign<br />

defence sectors, major<br />

defence suppliers and<br />

manufacturers.<br />

The conversations<br />

started at Pacific <strong>2017</strong><br />

will spread our state’s<br />

reputation in this densely<br />

networked market, having<br />

already resulted in<br />

follow-up visits to Tasmania,<br />

which I am confident<br />

will lead to more<br />

contracts for <strong>Tasmanian</strong><br />

firms in coming years.<br />

In September 2016,<br />

I joined a similar delegation<br />

presenting at the<br />

Land Forces 2016 defence<br />

expo in Adelaide,<br />

including Penguin Composites<br />

from the NW<br />

Coast.<br />

One of the conversations<br />

started at that event<br />

has recently resulted in<br />

Penguin Composites<br />

signing a three-year, $8<br />

million contract to supply<br />

composite body panels<br />

for 1100 Hawkei military<br />

vehicles – hopefully<br />

the first of many.<br />

For more on<br />

the defence industry<br />

sector, www.stategrowth.tas.gov.au/<br />

home/sectors/defence<br />

Job figures food for thought<br />

From page 7<br />

Labor would have preferred<br />

to have seen the<br />

public service managed<br />

with less fluctuations to<br />

avoid bulk redundancy<br />

payouts and impacts on<br />

service delivery.<br />

We were very critical<br />

of the Government’s<br />

budget cuts in health and<br />

education.<br />

Labor is committed to<br />

working closely with the<br />

public sector so taxpayers<br />

get maximum value<br />

for money.<br />

We are determined<br />

to find efficiencies that<br />

won’t affect service delivery<br />

and believe the<br />

best way to achieve that<br />

is to work constructively<br />

with the workforce.”<br />

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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong> 9<br />

NEWS<br />

State’s first gigabit internet online<br />

TASMANIAN-owned<br />

telco Launtel has officially<br />

launched its Blue<br />

Ocean Gigabit NBN internet<br />

service in Hobart,<br />

advancing a plan to make<br />

Tasmania the nation’s<br />

first gigabit state.<br />

The lightning fast service<br />

connects Tasmania<br />

with the global gigabit<br />

economy.<br />

It is 100 times faster<br />

than the current national<br />

average download speed.<br />

Launtel chose Priceline<br />

Glenorchy for the<br />

VIP launch ceremony to<br />

show that gigabit speeds<br />

are a productive addition<br />

to the information technology<br />

used by any business<br />

in Tasmania.<br />

“Today’s event is a<br />

A NEW health program is being<br />

rolled out to workplaces<br />

across the state in a worldfirst<br />

project.<br />

The State Government is<br />

partnering with employee<br />

wellbeing and behavioural<br />

change experts, Ritualize, to<br />

deliver the program.<br />

It is the first wellbeing platform<br />

in the world to be rolled<br />

major step in a statewide<br />

project that began earlier<br />

this year when Launceston<br />

became Australia’s<br />

first gigabit city,” Launtel<br />

CEO Michael Costigan<br />

said.<br />

“We’ve now added<br />

Hobart as Australia’s<br />

first capital city to<br />

boast gigabit NBN internet<br />

and after that we<br />

can look forward to the<br />

opportunity to upgrade<br />

other areas of Tasmania<br />

such as Burnie and<br />

Devonport on to the pure<br />

fibre gigabit network.<br />

“Tasmania has long<br />

relied on four mainstays<br />

of economic growth:<br />

forestry, mining, agriculture<br />

and tourism.<br />

“The introduction<br />

out statewide, free to all employees<br />

as a public-private<br />

partnership.<br />

State Health Minister Michael<br />

Ferguson and Building<br />

and Construction Minister<br />

Guy Barnett officially announced<br />

the partnership at the<br />

WorkSafe Expo in Hobart last<br />

month.<br />

The Healthy <strong>Tasmanian</strong><br />

of gigabit internet adds<br />

a new economic driver<br />

that offers high wage<br />

Workplaces program runs for<br />

12 months and all employers<br />

are eligible to enrol.<br />

The program is suitable for<br />

adults of any age and fitness<br />

level and is delivered through<br />

Ritualize’s mobile app and<br />

desktop platform.<br />

Ritualize is a holistic program<br />

that addresses diet,<br />

physical exercise, sleep and<br />

employment opportunities<br />

and environmentally<br />

friendly growth.<br />

“It firmly places Tasmania<br />

at the forefront<br />

of the high tech industry<br />

mindset and aims to change<br />

behaviours and to improve<br />

overall health literacy.<br />

Rituals include commonly<br />

recognised good habits such<br />

as eating more vegetables,<br />

staying hydrated and alcohol-free<br />

days through to less<br />

familiar techniques such as<br />

box breathing, cold showers<br />

and gratitude rituals.<br />

State Health<br />

Minister Michael<br />

Ferguson, right,<br />

addresses the<br />

Launtel launch with<br />

Launtel founder<br />

and Managing<br />

Director Damian<br />

Ivereigh, left, owner<br />

of the launch<br />

venue, Priceline<br />

Glenorchy, Jeffrey<br />

Hope, and Johnson<br />

Koal from the Federal<br />

Group.<br />

in Australia, and makes<br />

it the logical business<br />

location for Australian<br />

Mr Ferguson said promoting<br />

healthy lifestyle choices<br />

in the workplace could have<br />

a positive impact on the prevention<br />

of injury, illness and<br />

absences from work.<br />

Founder and Director of<br />

Ritualize, Paul Taylor, said<br />

the approach would help reduce<br />

the huge costs of illness.<br />

Healthier employees are<br />

businesses wishing to<br />

interact on equal terms<br />

with other high speed<br />

economies around the<br />

world.”<br />

Mr Costigan said that<br />

for various political,<br />

economic and logistical<br />

reasons, Tasmania<br />

was likely to remain the<br />

only state in Australia<br />

with widely available<br />

Gigabit connection for<br />

several years or more.<br />

“Tasmania must<br />

seize this golden opportunity<br />

to claim what is<br />

effectively Australia’s<br />

version of Silicon Valley<br />

and become the nation’s<br />

point of contact<br />

for the other gigabit<br />

economies around the<br />

world.”<br />

World-first new rituals to deliver a healthier workforce<br />

statistically more likely to<br />

perform better, have better<br />

focus and reduced fatigue, he<br />

said.<br />

“Typically this program<br />

costs $50 per employee but<br />

thanks to the State Government’s<br />

support, it free to all<br />

employees and their friends<br />

and family through participating<br />

workplaces.”<br />

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10 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong><br />

APPOINTMENTS and ANNOUNCEMENTS<br />

IN BRIEF<br />

Grant to help<br />

vulnerable stay<br />

safe online<br />

THE Westpac Foundation has announced<br />

Launceston’s <strong>Tasmanian</strong><br />

Acquired Brain Injury Service (TA-<br />

BIS) will receive $10,000 as part<br />

of the <strong>2017</strong> Westpac Foundation<br />

Community Grant Program.<br />

TABIS helps to improve the quality<br />

of life for those who are experiencing<br />

disadvantage.<br />

Three other <strong>Tasmanian</strong> organisations<br />

- Hamlet, Teen Challenge and<br />

RUOK - received grants from the<br />

foundation as part of a record $2<br />

million worth of grants for 200 local<br />

community organisations across<br />

Australia.<br />

TABIS CEO Paul Byrne said<br />

the grant would enable TABIS to<br />

facilitate a new ‘Stay Safe online’<br />

program, to educate and prevent<br />

vulnerable people from becoming<br />

victims of scamming, exploitation,<br />

harassment and bullying while using<br />

online services.<br />

Since 2012, Westpac Foundation<br />

Community Grants has provided<br />

more than $103,000 to <strong>Tasmanian</strong><br />

not-for-profits who are making a<br />

difference to their local communities.<br />

Tender<br />

technique<br />

change<br />

THE State Government has announced<br />

a new method for tendering.<br />

By mid-<strong>November</strong> this year, all<br />

Government agencies will provide<br />

an option of electronic lodgement<br />

for all tenders and procurements.<br />

TABIS participants in an art class who will now have access to an<br />

online scamming prevention program after a Westpac grant.<br />

The government said the change<br />

would reduce time and cost for<br />

businesses and create a more level<br />

playing field for smaller businesses<br />

and those in regional areas.<br />

“One of the issues raised by<br />

smaller businesses in regional areas<br />

is that some government tenders<br />

still require multiple paper copies of<br />

tender documents to be delivered to<br />

a tender box by a deadline,” Small<br />

<strong>Business</strong> Minister Roger Jaensch<br />

said.<br />

“This can be expensive and<br />

time-consuming, and disadvantages<br />

small businesses in regional areas<br />

that effectively have less time to<br />

prepare tenders and additional costs<br />

in delivering them compared to<br />

larger, city-based firms.”<br />

The Government’s also announced<br />

that a re-elected majority<br />

Liberal Government will set a target<br />

of 90% of contracts going to <strong>Tasmanian</strong>-based<br />

companies by 2022.<br />

Silo Hotel<br />

management<br />

MANTRA Group will manage<br />

Launceston’s new $25 million Silo<br />

Hotel under its Peppers brand when<br />

the development opens in April next<br />

year.<br />

The 10-storey hotel will have 108<br />

rooms, including 52 in the barrels<br />

of the former silo, and overlooks the<br />

nearby tourist drawcards of Seaport,<br />

Royal Park, the Tamar River Basin<br />

and Cataract Gorge.<br />

Four large apartments will occupy<br />

the top floor, while a restaurant,<br />

cocktail bar and large meeting room<br />

will be located on the first floor.<br />

Peppers Silo Hotel is the third<br />

management agreement signed between<br />

Mantra Group and developers<br />

Errol Stewart and Morris & MacLagen<br />

Group - joining Peppers Seaport<br />

Hotel, Launceston and Peppers York<br />

Cove, Tamar Valley.<br />

King Is gets<br />

shipping<br />

certainty<br />

A NEW vessel will double the<br />

capacity for freight to King Island<br />

after years of uncertainty about<br />

shipping to the island.<br />

The new ship, to run on a triangular<br />

service between Grassy on King<br />

Island, Victoria, and the North West<br />

of Tasmania will continue to be operated<br />

through Bass Island Lines.<br />

Consultations will now take<br />

place with customers on the island<br />

and with other key stakeholders<br />

including <strong>Tasmanian</strong>-based meat<br />

processors about port schedules and<br />

logistics.<br />

Train-ing<br />

transition<br />

EMPOWERING <strong>Tasmanian</strong> students<br />

to be the best they can be as<br />

they transition from education to<br />

the workforce is the key focus of<br />

TasRail’s new partnership with the<br />

Beacon Foundation.<br />

TasRail will manage a range of<br />

activities within Beacon’s collaborative<br />

education program in<br />

schools, including mentoring,<br />

workplace experience, careers on<br />

wheels and job chats to highlight<br />

the vast range of career opportunities<br />

available to <strong>Tasmanian</strong> students<br />

through the rail industry.<br />

Beacon State Manager Nick<br />

Probert said it was an invaluable<br />

opportunity for students to have<br />

direct interaction with a busy and<br />

productive workplace and meet<br />

members of the TasRail team who<br />

can share their career progression<br />

stories.<br />

Five-day training investment pays off<br />

BETH Mathison FAICD, has<br />

spent more than 30 years as a<br />

chair and non-executive director<br />

across a myriad of industries and<br />

sectors both in Australia and the<br />

UK.<br />

Now Managing Director of<br />

Centaur <strong>Business</strong> Networks, she<br />

has worked in tourism, manufacturing,<br />

construction, the NFP sector,<br />

government and education.<br />

Despite Beth’s years of experience<br />

on commercial boards, it<br />

was only in 2007 that she decided<br />

to enrol in the AICD’s Company<br />

Directors Course.<br />

“Since graduating from the<br />

Company Directors Course, I<br />

believe that it should be mandatory<br />

for anyone at the beginning<br />

of their board career and for<br />

current directors to improve their<br />

contemporary knowledge of good<br />

governance.”<br />

“The course re-defined my understanding<br />

of my fiduciary and<br />

ethical obligations as a director<br />

and improved my understanding<br />

of the board as a single decision-making<br />

entity made up of<br />

talented individuals,” she explains.<br />

“The insights I gained on this<br />

course were invaluable. I’ve worked<br />

with many technical specialists on<br />

many different boards who brought<br />

their own specialist skills to the table.<br />

“The Company Directors Course<br />

helped me understand that a director’s<br />

‘fit’ with the values of an organisation<br />

and the risk profile of the board<br />

is just as important as those specialist<br />

skills.”<br />

The next Company Directors<br />

Course is a five-day program held<br />

over two weeks (excluding weekends)<br />

at UTAS – University Club,<br />

Dobson Road Sandy Bay.<br />

For enrolment enquiries visit<br />

companydirectors.com.au/tas-<br />

5days<br />

APPOINTMENTS<br />

Janine Healey<br />

New state head<br />

for Institute of<br />

company directors<br />

JANINE Healey has been elected<br />

as the new president of the <strong>Tasmanian</strong><br />

Division of the Australian<br />

Institute of Company Directors.<br />

Ms Healey is currently a non-executive<br />

director of TasRail and<br />

serves on the Launceston Chamber<br />

of Commerce Board.<br />

She has previously served on the<br />

boards of Hydro Tasmania, TECC<br />

Ltd, Port of Launceston Pty Ltd and<br />

the Inveresk Railyard Management<br />

Authority.<br />

She has also served on the University<br />

of Tasmania Council and<br />

the QVMag Governance Advisory<br />

Board.<br />

AICD Managing Director and<br />

CEO Angus Armour congratulated<br />

Janine on her appointment as <strong>Tasmanian</strong><br />

Division President.<br />

“I’m confident that Janine will<br />

bring her extensive experience<br />

across not-for-profit, government<br />

and industry boards to her role as<br />

<strong>Tasmanian</strong> Division President,” he<br />

said.<br />

“Janine has served as a member<br />

of our <strong>Tasmanian</strong> Division Council<br />

since 2013. All of our state council<br />

members give their time and knowledge<br />

to the Institute on behalf of<br />

their fellow members in a voluntary<br />

capacity, and I’d like to thank Janine<br />

for her continued contribution<br />

in the role of president.<br />

“I’d also like to acknowledge<br />

the contribution of outgoing State<br />

President Rod Roberts, under<br />

whose leadership we’ve seen a<br />

significant increase in membership<br />

numbers, education courses offered<br />

and engagement with members in<br />

Tasmania.”<br />

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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong> 11<br />

EVENTS NEWS<br />

EVENT:<br />

Innovative Tasmania Awards<br />

LOCATION:<br />

Wrest Point Casino<br />

DATE:<br />

Wednesday, October 6, <strong>2017</strong><br />

ABOVE: Paris Buttfield-Addison, left, from Secret Lab and<br />

Daryl Lamb of Anglicare.<br />

ABOVE: Joel Harris, left, and Chris<br />

Podesta from Tasmanet.<br />

LEFT: Camille<br />

O’Meara, left,<br />

and Brad<br />

Johnson<br />

from<br />

Stornoway.<br />

ABOVE: Michelle Folder, left, and Annette Clark<br />

from Hobart City Mission.<br />

RIGHT: Leanne<br />

Tomlinson, left,<br />

from Spica and<br />

Eva Mackinley<br />

from The Last<br />

Straw.<br />

LEFT: Rosie<br />

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PROPERTY MATTERS<br />

<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - NOVEMBER <strong>2017</strong> 12<br />

Project team ready for action<br />

Scott Newton<br />

Property Matters with<br />

Knight Frank<br />

Knight Frank Tasmania’s Department Manager<br />

Residential Sales, Matthew Chugg,<br />

outlines the experience and support the<br />

recently launched Project Marketing Division,<br />

team can provide for new projects.<br />

TASMANIA is experiencing<br />

a number of exciting new developments<br />

on the back of a<br />

strong residential market.The<br />

demand for city apartment<br />

living is high, with over 200<br />

proposed apartments in the<br />

pipeline in Hobart alone.<br />

The number of buyers<br />

wanting to register on our<br />

projects and residential database<br />

has doubled in the past<br />

six months.<br />

In recent times, Knight<br />

Frank has been appointed to<br />

sell englobo land holdings<br />

suitable for further subdivision<br />

and development, or<br />

sites with the potential to be<br />

developed for apartment living.<br />

The Hobart market place<br />

has had a 13.6 per cent increase<br />

in the past 12 months<br />

with the median house price<br />

for Hobart up five per cent for<br />

the quarter – and there are no<br />

signs of slowing.<br />

Hobart’s changing market,<br />

which now has a very high<br />

demand for apartment living,<br />

has meant we need to have a<br />

total understanding of selling<br />

off-the-plan and providing<br />

intimate knowledge of the<br />

market and trends, providing<br />

the right advice to developers<br />

and investors.<br />

This demand has been the<br />

driver to create a whole new<br />

division to specialise in Project<br />

Marketing.<br />

Knight Frank Tasmania’s<br />

Project Marketing team offers<br />

a holistic Project Marketing<br />

service to support devel-<br />

opers through each phase of<br />

bringing a project to market.<br />

This is achieved via thorough<br />

planning and implementation<br />

of pre-launch marketing<br />

activities, managing<br />

the sale process, and coordinating<br />

settlement.<br />

This commences with a<br />

strategic review of how best<br />

to meet the marketing and<br />

selling objectives of the project.<br />

The review includes a full<br />

evaluation of the proposed<br />

product type in the context of<br />

location, likely target market,<br />

and current micro- and macro-economic<br />

conditions.<br />

The Knight Frank Project<br />

Marketing team also provides<br />

a full analysis to identify and<br />

review product specification,<br />

mix and pricing.<br />

A computer<br />

rendering of<br />

The Commons<br />

project at 126<br />

Bathurst St, an<br />

example of the<br />

type of<br />

apartment that<br />

is growing in<br />

popularity in<br />

Hobart.<br />

Experienced Knight Frank<br />

consultants specialising in<br />

off-the-plan sales are allocated<br />

to the projects with<br />

our counterparts from our<br />

interstate and overseas offices<br />

briefed. Depending on the<br />

project, Knight Frank will<br />

consider appointing third<br />

party agents for example to<br />

assist selling the offering<br />

via wholesale channels, or<br />

to provided floor plan and<br />

floor plate packs, valuations,<br />

and depreciation schedules.<br />

Knight Frank also provides<br />

full property management<br />

services for residential and<br />

commercial assets.<br />

Knight Frank has developed<br />

very clear and precise<br />

strategies on how to successfully<br />

market residential projects<br />

across the <strong>Tasmanian</strong><br />

market place.<br />

We have the skill sets, the<br />

experience, and personnel to<br />

deliver a successful outcome<br />

for our clients.<br />

The market place has put<br />

new demands on real estate<br />

professionals.<br />

We recognise selling offthe-plan<br />

is a totally different<br />

discipline to selling standalone<br />

individual residential<br />

properties.<br />

With many new projects either<br />

under construction or in<br />

the pipeline in Tasmania we<br />

are working with our Melbourne<br />

and Sydney counterparts,<br />

who are highly skilled<br />

project marketing professionals,<br />

to ensure we have the latest<br />

project marketing tools<br />

and strategies.<br />

It is a very exciting time<br />

to live and work in Tasmania<br />

and the Knight Frank team<br />

is ready to take on market<br />

changes and opportunities.<br />

PROPERTY VIEW<br />

NOVEMBER <strong>2017</strong><br />

For sale by Expression of Interest<br />

LANDMARK CBD OPPORTUNITY<br />

169 Liverpool Street, Hobart<br />

• Landmark 7 level commercial building; NLA<br />

2,886sqm (approx)<br />

• High profile corner position within the CBD,<br />

100m (approx) from the central retail block<br />

• Fully leased to IOOF, an ASX-listed top 100<br />

company, until 30 June 2019<br />

• Estimated Net Passing Income of $762,462<br />

pa + GST<br />

• Each level is strata titled with total strata<br />

area of 3,726sqm (approx), plus additional<br />

freehold parcel of 186sqm (approx) used for<br />

car parking for approximately 13 cars<br />

Richard Steedman 0408 559 046<br />

Scott Newton 0409 186 261<br />

View at KnightFrank.com.au/3909265<br />

For sale by Expression of Interest<br />

RENOVATED 1860’S FLOUR MILL<br />

8 Brooke Street, Hobart<br />

• In the heart of Sullivans Cove precinct<br />

• Four strata units over three floors, available in<br />

one line or separately. Estimated net income<br />

of $270,000 over all stratas<br />

• Part Ground Floor - quality hospitality tenant<br />

with 6 year lease from 1/6/15 + 6 year option<br />

• 1st Floor - medical consulting tenant with 1<br />

year lease to September 2018<br />

• 2nd Floor - two very high quality, short-term<br />

accommodation units trading as ‘luXXe<br />

Waterfront Residence’<br />

The place for the<br />

best property<br />

professionals.<br />

<strong>2017</strong><br />

For sale by Expression of Interest<br />

RARE BATTERY POINT OFFERING<br />

44-46 Hampden Road, Battery Point<br />

• Superbly situated in Hobart’s most exclusive<br />

and historic suburbs – Battery Point<br />

• Comprises Monsoon Thai Restaurant, selfcontained<br />

visitor accommodation, plus large<br />

3-bedroom residence with outdoor courtyard<br />

• Currently leased with varying lease expiries;<br />

returning approximately $96,000 net pa<br />

• Very easy walking distance to Hobart<br />

waterfront, Salamanca Place, Hobart CBD,<br />

and Sandy Bay<br />

• Excellent spread of risk for potential<br />

purchasers through mixed-use tenancies<br />

Matthew Wright 0458 290 588<br />

Scott Newton 0409 186 261<br />

View at KnightFrank.com.au/3913120<br />

Awards for Excellence Winners<br />

Commercial Agency of the Year Award<br />

Knight Frank — 2016 & <strong>2017</strong><br />

Residential Sales Person of the Year Award<br />

Commercial Property Manager<br />

Liam Coyle<br />

<strong>Business</strong> Broker Award<br />

Jim Playstead<br />

John Blacklow<br />

Ian Reed 0419 670 501<br />

Outline indicative only<br />

Scott Newton 0409 186 261<br />

View at KnightFrank.com.au/3904083<br />

5 Victoria Street, Hobart 41 York Street, Launceston Shop 6a, 48-54 Oldaker Street, Devonport<br />

P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568

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