Tasmanian Business Reporter April 2018
This month, you'll read how Tasmanian business leaders have welcomed the re-elected Liberal Government's mandate to continue revitalising the state's economy. You'll also find details about a $3 million research grant for the Australian Maritime College, St.LukesHealth taking home a prestigious customer satisfaction award and Tasmania's Defence Advocate being bestowed with the US Military's highest honour for a non-US citizen.
This month, you'll read how Tasmanian business leaders have welcomed the re-elected Liberal Government's mandate to continue revitalising the state's economy.
You'll also find details about a $3 million research grant for the Australian Maritime College, St.LukesHealth taking home a prestigious customer satisfaction award and Tasmania's Defence Advocate being bestowed with the US Military's highest honour for a non-US citizen.
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APRIL <strong>2018</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 />
<strong>Tasmanian</strong> Governor Kate Warner, centre, with the newly<br />
sworn in Liberal Cabinet, from left, Elise Archer, Sarah<br />
Courtney, Jeremy Rockliff, Guy Barnett, Jacquie Petrusma,<br />
Premier Will Hodgman, Michael Ferguson, Peter Gutwein and<br />
Roger Jaensch.<br />
Liberal<br />
mandate<br />
By TOM O’MEARA<br />
TASMANIAN business leaders<br />
have welcomed the return of Will<br />
Hodgman’s majority Liberal Government<br />
with a mandate to continue<br />
revitalising the state’s economy.<br />
The March 3 poll was a clear<br />
victory for the Liberal Party, after<br />
it gained more than 50 per<br />
cent of the primary vote.<br />
Despite that solid polling, it<br />
has had its overall number reduced<br />
to just the required 13<br />
Members needed to maintain<br />
control on the floor of the House<br />
of Assembly.<br />
Labor increased its numbers<br />
to 10 and the Greens suffered<br />
another significant reduction in<br />
support, winning just two seats.<br />
While Parliament doesn’t resume<br />
until next month, the government<br />
will be expected to roll<br />
up its sleeves quickly to start delivering<br />
its suite of promises to increase<br />
jobs and build the economy<br />
with new infrastructure and development.<br />
The Liberal Cabinet has been<br />
sworn in, with Mr Hodgman, Deputy<br />
Premier and Education Minister<br />
Jeremy Rockliff, Treasurer Peter<br />
Gutwein and Health Minister<br />
Michael Ferguson retaining their<br />
key portfolios – all four saying<br />
they have unfinished business in<br />
each area.<br />
Mr Gutwein’s State Budget, due<br />
in June, will outline how they will<br />
fund their big-spending campaign<br />
which involved a record spend for<br />
health.<br />
Hobart lord mayor Sue Hickey<br />
will swap her mayoral chains for<br />
the role of Parliamentary Secretary<br />
to the Premier for Small <strong>Business</strong><br />
after winning a seat in Denison.<br />
<strong>Tasmanian</strong> Chamber of Commerce<br />
CEO Michael Bailey said<br />
the majority government result<br />
would be good for Tasmania and<br />
Mr Hodgman has a clear mandate<br />
for a series of policies.<br />
The policies include the takeover<br />
of TasWater and the retention<br />
of poker machines in pubs and<br />
Continued page 2<br />
How<br />
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2 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong><br />
NEWS<br />
Award for St.Lukes<br />
Tassie health<br />
insurer leads<br />
THE prestigious 2017<br />
Roy Morgan Customer<br />
Satisfaction Award for<br />
Private Health Insurer of<br />
the Year has been won by<br />
St.Lukes Health.<br />
It’s the second year in<br />
a row that the Launceston-based<br />
not-for-profit<br />
organisation has won the<br />
award.<br />
St.LukesHealth CEO<br />
Paul Lupo said after introducing<br />
a range of new<br />
initiatives, it was a huge<br />
vote of confidence in<br />
the hard work and dedication<br />
of the board and<br />
St.LukesHealth staff.<br />
“To support the<br />
health and wellbeing<br />
of our members in the<br />
last 12 months alone,<br />
St.LukesHealth has implemented<br />
a new postnatal<br />
service for northern<br />
<strong>Tasmanian</strong> mothers, introduced<br />
an online medical<br />
health record system,<br />
St.LukesHealth CEO<br />
Paul Lupo<br />
and taken the lead in<br />
rolling out HICAPS GO<br />
to provide greater transparency<br />
for our customers<br />
around out of pocket<br />
costs,” Mr Lupo said.<br />
“As the first to adopt<br />
the HICAPS GO mobile<br />
app in Tasmania, we<br />
are providing a simpler<br />
and easier way to find<br />
and book appointments<br />
with health practitioners<br />
and manage healthcare,<br />
while also greatly improving<br />
our member’s<br />
experience.<br />
“We hope this preventative<br />
approach will<br />
ultimately improve our<br />
member’s long-term<br />
health outcomes, assist<br />
them to navigate the<br />
health care system, as<br />
well as demonstrate the<br />
real value of health insurance.<br />
“Introducing the HI-<br />
CAPS GO app also<br />
means that our members<br />
will be the first to have<br />
access to a digital membership<br />
card and keep us<br />
aligned with our member’s<br />
growing demand<br />
for online services.”<br />
St.LukesHealth has<br />
more than 30,000 policies<br />
covering over<br />
62,000 people Australia-wide.<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 />
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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 />
Defence links earn US gong<br />
TASMANIA’S Defence<br />
Advocate has been<br />
awarded the US Military’s<br />
highest honour for<br />
a non-US citizen, the Legion<br />
of Merit.<br />
Rear Admiral (Rtd)<br />
Steve Gilmore AM, CSC,<br />
was presented the Degree<br />
of Officer award by<br />
Acting US Ambassador<br />
(Charge d’Affaires, a.i.)<br />
James Carouso in a ceremony<br />
at the US Embassy<br />
in Canberra.<br />
The Legion of Merit<br />
recognises “exception-<br />
Libs claim clear mandate<br />
From page 1<br />
clubs, rather than Labor’s<br />
policy of restricting poker<br />
machines to the state’s<br />
two Casinos in Hobart<br />
and Launceston.<br />
“Clearly these two<br />
policies were high on the<br />
agenda before the election<br />
was called and were<br />
out there for the voters<br />
to make their decision<br />
which supported the Liberal<br />
Party,” Mr Bailey<br />
said.<br />
“It will be interesting<br />
to see if the Legislative<br />
Council listens to the will<br />
ally meritorious conduct<br />
in the performance of<br />
outstanding services and<br />
achievements” and is<br />
conferred jointly by the<br />
Director of the US Defense<br />
Intelligence Agency<br />
and the US Secretary<br />
of Defense.<br />
Gilmore was honoured<br />
for his service as Head<br />
Australian Defence Staff<br />
and Australian Defence<br />
Attache at the Australian<br />
Embassy in Washington<br />
DC from January 2014 to<br />
2017, following a distin-<br />
of Tasmania’s people - I<br />
and thousands of <strong>Tasmanian</strong>s<br />
will be very disappointing<br />
if they vote<br />
against such policies.<br />
“It became very obvious<br />
last year when the<br />
Legislative Council’s Select<br />
Committee on Tas-<br />
Water’s ownership was<br />
taking evidence from the<br />
community that the result<br />
would be negative.<br />
“I’m a strong supporter<br />
of the independent<br />
Legislative Council and<br />
its role as a house of review.<br />
I believe that a Labor<br />
bloc, if it does exist<br />
as the Treasurer suggests,<br />
would be against the intention<br />
this important<br />
house.”<br />
Tasmania’s economic<br />
revival, and confidence<br />
among business owners,<br />
had been highlighted<br />
regularly interstate and<br />
the result was lauded as<br />
a reward for competent<br />
leadership.<br />
The Australian Financial<br />
Review praised the<br />
outcome as “good news”.<br />
“When Will Hodgman<br />
became Premier in 2014,<br />
Steve Gilmore,<br />
right, receives<br />
the Legion of<br />
Merit Degree of<br />
Officer award<br />
from acting<br />
US Ambassador<br />
(Charge<br />
d’Affaires, a.i.)<br />
James Carouso<br />
in Canberra.<br />
guished 40-year military<br />
career with the Royal<br />
Australian Navy.<br />
During his time in<br />
Washington Rear Admiral<br />
Gilmore oversaw all<br />
Australian Defence interactions<br />
with the US<br />
including oversight of<br />
Defence Capability and<br />
Sustainment Group’s<br />
embassy-led activities,<br />
managing more than 400<br />
active foreign military<br />
sales contracts with the<br />
US involving expenditure<br />
of around $15 million<br />
each day. Gilmore<br />
was appointed <strong>Tasmanian</strong><br />
Defence Advocate<br />
in August 2017 in a bid<br />
to improve Tasmania’s<br />
reputation and capacity<br />
across the manufacturing<br />
sector, in particular<br />
defence supply contracts<br />
such as the confirmation<br />
that Burnie sheet metal<br />
manufacturing firm Direct<br />
Edge will partner<br />
in delivering the next<br />
stage of the Land 400 armoured<br />
vehicles for the<br />
Australian Army.<br />
Tasmania was being<br />
squeezed by the mining<br />
boom: its primary export<br />
and tourism-dependent<br />
economy was struggling<br />
with the high dollar.<br />
“Mr Hodgman successfully<br />
managed the<br />
post-boom adjustment,<br />
attracted more investment<br />
– including from<br />
China – got state finances<br />
under control, and<br />
dropped the state’s jobless<br />
rate from the Commonwealth’s<br />
highest to<br />
its second lowest,” the<br />
AFR said.<br />
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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong> 3<br />
NEWS<br />
AMC joins US research leaders<br />
THE Australian Maritime<br />
College at the University of<br />
Tasmania has been awarded<br />
$3 million to conduct research<br />
with leading US universities<br />
on improving Australia’s naval<br />
capability.<br />
Defence Industry Minister<br />
Christopher Pyne announced<br />
that AMC would join seven<br />
leading US universities in<br />
hydrodynamics research for<br />
the three-year project, which is<br />
funded through the Multidisciplinary<br />
University Research<br />
Initiative administered by the<br />
US Department of Defense.<br />
The researchers will study<br />
the physics of cavitation, where<br />
vapour bubbles form in the water<br />
flowing over a surface, such<br />
as a hull or propeller, and then<br />
collapse, to better understand<br />
how it affects the performance<br />
of naval vessels.<br />
Research aims to improve the<br />
design of ship and submarine<br />
propellers and hull shapes.<br />
AMC Interim Principal,<br />
Professor Nataliya Nikolova<br />
said the experiments would be<br />
conducted in the Cavitation<br />
Research Laboratory – the only<br />
one of its kind in Australia<br />
and one of a handful of such<br />
Basslink heads to court<br />
THE battle over who is<br />
to blame for the $100<br />
million Basslink cable<br />
failure that plunged<br />
Tasmania into an energy<br />
crisis is heading to<br />
court.<br />
Energy Minister Guy<br />
Barnett has written<br />
to Basslink Proprietary<br />
Limited threatening legal<br />
action unless compensation<br />
is forthcoming,<br />
saying a dispute<br />
has arisen under the<br />
Basslink Operations<br />
Agreement.<br />
Basslink will defend<br />
the allegation, as both<br />
parties stand by differing<br />
reports into what<br />
caused the outage.<br />
“Basslink understands<br />
that the State’s<br />
allegations stem from<br />
the (international en-<br />
experimental laboratories in the<br />
world.<br />
“AMC is home to some of<br />
the most sophisticated research<br />
facilities in the world that allow<br />
us to do some of the best<br />
maritime-related research in<br />
the world,” Professor Nikolova<br />
said.<br />
“The facilities are recognised<br />
internationally as being among<br />
the most advanced for their size<br />
and quality, and have played<br />
an important role in a number<br />
of national and international<br />
research collaborations.<br />
“This grant supports the<br />
successful research partnership<br />
between the university, the<br />
Defence Science and Technology<br />
Group and the US Office<br />
of Naval Research, and will<br />
enhance collaborations in ship<br />
and submarine research with<br />
colleagues from some of the<br />
most internationally respected<br />
universities in the US.”<br />
The US universities include<br />
the Massachusetts Institute of<br />
Technology, Johns Hopkins<br />
University, California Institute<br />
of Technology, University of<br />
California, University of Minnesota,<br />
University of Iowa and<br />
the University of Michigan.<br />
Research fellow Luka Barbaca, left, with Cavitation Research Laboratory Research Leader Professor Paul Brandner.<br />
gineering consultancy)<br />
DNV GL reports commissioned<br />
by the lawyers<br />
for Hydro Tasmania,”<br />
Basslink said in a<br />
statement.<br />
“As Basslink has<br />
previously noted, DNV<br />
GL did not conduct any<br />
testing of the Basslink<br />
interconnector’s cable<br />
and their reports<br />
were solely based on<br />
theoretical modelling.<br />
“Basslink stands by the<br />
independent investigation<br />
that was undertaken<br />
by Cable Consulting<br />
International, who<br />
concluded the actual<br />
root cause of the cable<br />
failure in December<br />
2015 as “cause unknown”.<br />
Mr Barnett said the<br />
<strong>Tasmanian</strong> Government<br />
never accepted<br />
CCI’s finding.<br />
“The expert reports<br />
into the cable failure<br />
delivered in December<br />
2017 indicate that<br />
BPL had operated the<br />
cable in a manner that<br />
allowed it to exceed<br />
its temperature design<br />
limits during a number<br />
of periods in its service<br />
life,” Mr Barnett said.<br />
Picture: Scott Gelston/AMC.<br />
“The State has undertaken<br />
a careful<br />
analysis of its legal position.<br />
The State takes the<br />
view that the actual capability<br />
of the Basslink<br />
facilities and the way<br />
in which the Basslink<br />
cable has been operated<br />
may constitute a<br />
breach of the State’s<br />
rights under the BOA.”<br />
Steven Dietrich<br />
New<br />
boss<br />
leads<br />
TasRail<br />
TASRAIL has appointed Steven<br />
Dietrich as Chief Executive<br />
Officer.<br />
Mr Dietrich, who joined<br />
TasRail in June 2010 as the<br />
Chief Financial Officer and<br />
Company Secretary, has almost<br />
three decades of handson<br />
management experience<br />
in logistics and infrastructure<br />
with publicly- listed and stateowned<br />
companies, including<br />
BOOM Logistics, Pacific<br />
National, Toll Shipping and<br />
CHEP.<br />
Mr Dietrich said he looked<br />
forward to leading the TasRail<br />
team and business during an<br />
unprecedented chapter in Tasmania’s<br />
150-year rail history.<br />
“The State and Federal<br />
Governments are investing<br />
more than $324 million into<br />
Tasmania’s rail network to negate<br />
decades of infrastructure<br />
spending neglect to ensure<br />
TasRail can deliver freight in<br />
a timely, safe and competitive<br />
manner on behalf of its highly-valued<br />
customers,” Mr Dietrich<br />
said.<br />
TasRail chairwoman Samantha<br />
Hogg said Mr Dietrich<br />
would implement the TasRail<br />
Board’s strategic direction to<br />
focus on further growth in the<br />
above rail commercial logistics<br />
business<br />
Ms Hogg also paid tribute<br />
to outgoing CEO Damien<br />
White, who has led TaRail for<br />
the past eight years.<br />
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4 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong><br />
THOUGHT LEADERSHIP<br />
www.tcci.com.au<br />
Lessons from the election<br />
Michael<br />
Bailey<br />
TCCI Chief Executive<br />
THE State Election has<br />
been run and won by<br />
Will Hodgman’s Liberal<br />
Government, only the<br />
second time the Liberals<br />
have won back-to-back.<br />
While congratulations<br />
go to the Liberal Party,<br />
it is interesting to ponder<br />
on what happened at the<br />
election and what lessons<br />
we can take from the result.<br />
Whichever way you<br />
look at it, the election<br />
was a confirmation that<br />
the <strong>Tasmanian</strong> public are<br />
more than comfortable<br />
with how the Hodgman<br />
Government has managed<br />
our state.<br />
There is no doubt that<br />
the last four years have<br />
been a triumph for Tasmania<br />
and a stark change<br />
from the years prior.<br />
What is also clear is<br />
that the Liberals will<br />
have to work hard to deliver<br />
its suite of election<br />
promises. And the TCCI<br />
will be there through the<br />
next four years to hold<br />
them to account.<br />
Treasurer Peter Gutwein’s<br />
next Budget will<br />
make for an extremely<br />
interesting examination.<br />
I also want to tip my<br />
hat to Labor Leader Rebecca<br />
White. In four<br />
years’ time, she will be<br />
even more formidable -<br />
poised to take the reins<br />
of government should<br />
the Liberals falter.<br />
However, I think that<br />
there are other things<br />
that we can learn from<br />
this result.<br />
• The <strong>Tasmanian</strong><br />
Greens must evolve.<br />
I know that this has<br />
been spoken about by<br />
others, including former<br />
Greens leader Peg Putt,<br />
but they are simply not<br />
resonating with the community<br />
as they used to.<br />
It will be interesting to<br />
see if they move closer to<br />
the centre or try to rekindle<br />
the protests to regain<br />
relevance.<br />
Will Hodgman and the Liberals ran a strong campaign and now have a mandate to deliver their<br />
suite of election promises, including the take over of Taswater<br />
• On primary votes,<br />
Labor really didn’t dent<br />
the Government much.<br />
Yes they have won<br />
three seats back, perhaps<br />
more admirable with the<br />
retirements of Lara Giddings<br />
and David Llewellyn,<br />
but they will need to<br />
do much more to win in<br />
four years.<br />
Labor faced several<br />
issues through the campaign,<br />
including a difficulty<br />
in articulating a<br />
clear vision for Tasmania.<br />
In my opinion, Labor’s<br />
poker machine policy<br />
was an own goal of monumental<br />
proportions. It<br />
was not popular, particularly<br />
in the regions.<br />
I heard this loud and<br />
clear in my travels and I<br />
can only image the heat<br />
that the party must have<br />
been getting. I was not<br />
surprised Federal Labor<br />
Leader Bill Shorten distanced<br />
himself from the<br />
policy.<br />
• The new Liberal<br />
Government has a clear<br />
mandate for a series of<br />
policies, including the<br />
proposed takeover of<br />
TasWater.<br />
It will be interesting<br />
to see if the Legislative<br />
Council respects the will<br />
of the <strong>Tasmanian</strong> people.<br />
It will be very disappointing<br />
if they vote<br />
against such policies.<br />
I am a strong supporter<br />
of an independent Legislative<br />
Council and believe<br />
that a Labor bloc (if<br />
it does exist as the Treasurer<br />
suggests) would be<br />
against the intention of<br />
this important House.<br />
• As I said before, the<br />
Liberal Government has<br />
made a series of significant<br />
spending commitments.<br />
The TCCI will<br />
hold them to account for<br />
each and every one of<br />
them.<br />
March also saw the<br />
shock passing of former<br />
State politician and<br />
cricketer Tony Benneworth.<br />
Tony drowned,<br />
with his mate Tony<br />
Long, in a boating incident<br />
at Ansons Bay.<br />
I met Tony more than<br />
30 years ago and had<br />
enjoyed his friendship,<br />
counsel, thoughts and<br />
joint passion for Carlton<br />
since.<br />
He was a man with<br />
great passion and enthusiasm<br />
with everything he<br />
did. VALE Tony Benneworth.<br />
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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong> 5<br />
THOUGHT LEADERSHIP<br />
www.tcci.com.au<br />
Buoyed by evolution of logistics<br />
Brett<br />
Charlton<br />
Agility Logistics<br />
NEVER before have I seen<br />
such a buoyant time for international<br />
traders in Tasmania.<br />
From a shipping point of<br />
view we have a new Sea<br />
Road vessel and another one<br />
ordered, two new Toll vessels<br />
about to be rolled into the water,<br />
orders for new TT Line<br />
ferries, MSC announcing that<br />
they are swinging their Asian<br />
service into Bell Bay, Maersk<br />
line calling into Bell Bay,<br />
Swires calling into Hobart<br />
and the likes of CMA CGM,<br />
ANL, PIL, OOCL, Hambug<br />
Sud and Cosco all servicing<br />
Tasmania via feeder services.<br />
These are the largest shipping<br />
lines in the world – all<br />
with confidence to invest and<br />
compete their services into<br />
Tasmania. Not bad for a population<br />
of 500,000.<br />
Sustainable? It seems to be<br />
so far.<br />
I recently attended the<br />
opening of the Australian office<br />
for JD.com.<br />
JD.com is the third largest<br />
internet company on the planet<br />
after Google and Apple – I<br />
wonder who reading this has<br />
even heard of JD.com?<br />
It is really interesting to see<br />
the evolution of logistics in<br />
other countries and the world<br />
of e-commerce logistics in<br />
China never ceases to amaze<br />
me.<br />
At a luncheon hosted by<br />
JD.com the president and the<br />
chief technical officer were<br />
discussing how they are missing<br />
out on a percentage of the<br />
market in China due to the<br />
difficulties of delivery.<br />
The number stated was<br />
about 20 million people.<br />
The solution for delivery<br />
to these people off the beaten<br />
track – drones of course.<br />
The thing is, when I consider<br />
the conversation of drones<br />
being used for delivery in<br />
Australia I think in terms of<br />
“that is so far away I won’t<br />
get to see it” whereas in China<br />
it is “yep, we have tested<br />
that and it should be up and<br />
running in six months”.<br />
The president was talking<br />
of the latest iPhone release.<br />
He spoke of queues of<br />
people waiting outside Apple<br />
shops in the US and Australia<br />
to get their iPhone when the<br />
shop opens.<br />
In Beijing all of the iPhone<br />
Xs were delivered within 45<br />
minutes of the phone being<br />
available – that is at 12.45am<br />
– delivered to the door.<br />
Not only that, the next sentence<br />
was about how they are<br />
looking to reduce the times<br />
even more with automated<br />
delivery vehicles.<br />
Meanwhile, I would encourage<br />
all readers to go to<br />
the Regional Development<br />
Australia (Tasmania) web<br />
site (rdatasmania.org.au) and<br />
download a copy of the <strong>Tasmanian</strong><br />
Freight Equalisation<br />
Scheme case study report.<br />
The author Mike Bridley<br />
has written an excellent document<br />
on how the extension to<br />
the TFES for export cargoes<br />
has created opportunities,<br />
<strong>Tasmanian</strong><br />
Logistics<br />
Committee<br />
chairman Brett<br />
Charlton, left, Jim<br />
Ertler of Premium<br />
Fresh Tasmania),<br />
Liberal Senator<br />
Richard Colbeck<br />
and chairman of<br />
Regional Development<br />
Australia<br />
- Tasmania, Tom<br />
Black encourage<br />
business to use<br />
the FES.<br />
growth and employment for<br />
<strong>Tasmanian</strong> businesses.<br />
Please pass on this report<br />
to your staff, friends and colleagues<br />
so that this important<br />
aspect of Tasmania’s success<br />
continues to support our<br />
growth.<br />
Making the most of your sale potential<br />
WHAT makes your business<br />
attractive in an open<br />
market?<br />
When a business is<br />
listed for sale, usually on<br />
the many <strong>Business</strong> for<br />
Sale websites, what aspects<br />
of a standout business<br />
will buyers be looking<br />
for?<br />
Here are five wise tips<br />
that will help you sell<br />
quickly and maximise<br />
the proceeds of sale.<br />
Focus your efforts on<br />
all of these and you will<br />
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• Up-to-date numbers<br />
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reports demonstrates the<br />
business is well run.<br />
Demonstrate the<br />
strength of employee,<br />
customer and supplier<br />
relationships.<br />
• Buyers will be looking<br />
for evidence of sound<br />
relationships. A well-organised<br />
Customer Relationship<br />
Management<br />
(CRM) database with<br />
customer history is very<br />
appealing.<br />
• Formal contracts<br />
with employees are necessary<br />
for continuity.<br />
• Suppliers contracts<br />
and purchasing history<br />
showing any trade discounts<br />
bodes very well.<br />
Ensure the business can<br />
fulfil its sales forecast.<br />
• What proven marketing<br />
activities are in place<br />
to fill the sales pipeline<br />
moving forward?<br />
• Is there a documented<br />
sales process for dealing<br />
with leads generated<br />
by marketing?<br />
• What other steps<br />
have been taken to ‘future<br />
proof’ the business?<br />
Help instil potential<br />
buyers with confidence.<br />
• You only have one<br />
chance to make a good<br />
first impression. Be prepared<br />
and present the<br />
business in its best possible<br />
condition.<br />
• It is far better to be<br />
prepared for the day a<br />
buyer knocks on your<br />
door than to have an interested<br />
buyer and not be<br />
prepared.
6 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong><br />
THOUGHT LEADERSHIP<br />
www.tcci.com.au<br />
Equal playing field for exporters<br />
Sally<br />
Chandler<br />
Tradestart Adviser<br />
REGIONAL Development<br />
Australia, Tasmania recently<br />
released a case studies paper<br />
analysing the effects over the<br />
first 18 months of the <strong>Tasmanian</strong><br />
Freight Equalisation<br />
Scheme being opened to exporters.<br />
The four-year extension to<br />
the scheme started on January<br />
1, 2016.<br />
It allowed exporters to<br />
access benefits under the<br />
scheme and compete on equal<br />
terms in international markets<br />
with mainland competitors<br />
and those from other countries.<br />
The analysis by RDA Tasmania<br />
was for January 1,<br />
2016 to June 30, 2017.<br />
The paper was prepared to<br />
provide an understanding of<br />
the benefits of the Australian<br />
Government’s commitment<br />
to the extension of the TFES<br />
to cover exports transhipped<br />
through mainland ports and in<br />
particular, the impact the initiative<br />
has had on the <strong>Tasmanian</strong><br />
business community.<br />
Author Mike Brindley interviewed<br />
representatives<br />
from 11 businesses across<br />
many diverse sectors, providing<br />
a case study on each business.<br />
The outcomes were very<br />
positive showing improved<br />
confidence in the firm’s business<br />
model, new investment<br />
in plant and equipment, additional<br />
development of international<br />
markets, diversification<br />
of a firm’s income base,<br />
less reliance on the Australian<br />
domestic market, improved<br />
employment outcomes for<br />
part time and full time workers,<br />
and, innovative product<br />
development and design for<br />
new markets.<br />
The report concluded that<br />
the extension of the TFES<br />
was working well.<br />
The benefits under the extension<br />
are being received<br />
well by <strong>Tasmanian</strong> exporters<br />
and the extension itself is<br />
achieving its objectives of facilitating<br />
exports and promoting<br />
broader diversification,<br />
Case studies paper author Mike Brindley from Regional Development Australia.<br />
investment and employment.<br />
There are ongoing challenges<br />
however. Awareness of the<br />
TFES among <strong>Tasmanian</strong> businesses<br />
remains limited including<br />
how these businesses can<br />
The report<br />
concluded that<br />
the extension<br />
of the TFES<br />
was working<br />
well.<br />
successfully make claims for<br />
eligible freight movements.<br />
So my message to exporters<br />
is – where your terms of<br />
sale are ex-Tasmania and your<br />
freight leaves by sea and is<br />
transhipped to an international<br />
market via a mainland port,<br />
ensure you understand the financial<br />
benefits available under<br />
the TFES, your eligibility<br />
to access those benefits, and,<br />
how to make a claim.<br />
The financial assistance received<br />
which allows for lower<br />
pricing may well be the difference<br />
of entering an export<br />
market or not.<br />
For international trade<br />
and investment assistance<br />
contact TradeStart<br />
Adviser, Sally Chandler,<br />
at sally.chandler@tcci.<br />
com.au or phone<br />
1300 559 122.<br />
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Important role for<br />
a support person<br />
THE performance management<br />
process can<br />
involve many steps for<br />
employers to ensure that<br />
the employee is afforded<br />
procedural fairness and<br />
to reduce the risk of an<br />
unfair dismissal being<br />
made if employment is<br />
terminated.<br />
Employers are generally<br />
aware that they must<br />
not refuse a request that a<br />
support person is present<br />
during any formal management<br />
process.<br />
However, employers<br />
can still be unsure as to<br />
what the role of a support<br />
person is during such<br />
meetings.<br />
A support person is<br />
there to offer emotional<br />
support to the employee<br />
during the process if required.<br />
A support person is<br />
not there to advocate or<br />
speak on the employee’s<br />
behalf – regardless<br />
of whether the support<br />
person is the employee’s<br />
parent, friend, union representative,<br />
lawyer etc.<br />
The title of the support<br />
person is irrelevant<br />
– their role will remain<br />
the same.<br />
This does not mean<br />
that an employer should<br />
not allow the support<br />
person to speak if they<br />
are of the view that it<br />
Abbey<br />
George<br />
Workplace Relations<br />
would assist the progression<br />
of the meeting.<br />
For example a support<br />
person may be able to assist<br />
in the prompting of<br />
information from a distraught<br />
employee.<br />
Sometimes a support<br />
person’s contribution to<br />
the meeting can also be<br />
valuable in assisting the<br />
employer to explore the<br />
issues or reasoning behind<br />
an employee’s behaviour,<br />
but this will of<br />
course depend on the circumstances.<br />
Alternatively a support<br />
person may have a negative<br />
impact on the meeting,<br />
for example if they<br />
begin to take on the role<br />
of an advocate.<br />
If this is the case, the<br />
employer can:<br />
• remind the support<br />
person of their role;<br />
• ask whether the employee<br />
would like a<br />
break to discuss any issues<br />
with the support<br />
person;<br />
• let the support person<br />
know that the meeting<br />
will come to an end and<br />
reconvened at another<br />
time if they continue to<br />
disrupt the meeting; and/<br />
or<br />
• ask the support person<br />
to wait outside if<br />
they continue to be particularly<br />
disruptive.<br />
As an employer, you<br />
too can also have a support<br />
person present<br />
during the meeting if you<br />
so wish (such as someone<br />
from the TCCI).<br />
If you are unsure<br />
about the role of a<br />
support person, or<br />
any issues in relation<br />
to the performance<br />
management process<br />
or employment<br />
matters generally<br />
please contact TCCI<br />
by contacting the<br />
Helpline on<br />
1300 765 123 or the<br />
TCCI on<br />
1300 59 122 or<br />
workplacerelations@<br />
tcci.com.au
<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong> 7<br />
THOUGHT LEADERSHIP<br />
Small business our<br />
economic backbone<br />
Sue<br />
Hickey<br />
Parliamentary Secretary for<br />
Small <strong>Business</strong><br />
IT IS an absolute pleasure and<br />
an honour to be appointed<br />
Parliamentary Secretary for<br />
Small <strong>Business</strong> and Parliamentary<br />
Secretary for Urban<br />
Development in the re-elected<br />
Hodgman Liberal Government.<br />
With more than 30 years of<br />
experience in small business,<br />
I understand the unique pressures<br />
facing this vital sector<br />
of the economy.<br />
I will be bringing my personal<br />
understanding and<br />
knowledge to the position<br />
and act as a strong advocate<br />
for Tasmania’s small business<br />
community.<br />
In 2012 I received my Masters<br />
of <strong>Business</strong> and Administration<br />
from the University<br />
of Tasmania and in 2007 was<br />
nominated Telstra <strong>Tasmanian</strong><br />
<strong>Business</strong> Woman of the Year<br />
in recognition of my business<br />
experience.<br />
Tasmania’s small business<br />
sector is the backbone<br />
of the state’s economy, with<br />
more than 36,000 small businesses<br />
employing more than<br />
110,000.<br />
I want to see Tasmania’s<br />
small businesses continue to<br />
flourish and the re-elected<br />
Government has a number of<br />
policies to support small businesses<br />
so they can reach their<br />
full potential.<br />
Following our successful<br />
$5 million pilot scheme to<br />
support trainees and apprentices<br />
in small businesses, we<br />
will provide $2.5 million annually<br />
for a Small <strong>Business</strong><br />
Grants for Apprentices and<br />
Trainees Program.<br />
This funding would provide<br />
a grant of up to $5,000 for<br />
each new apprentice or trainee<br />
taken on by a small business<br />
in growth areas, including<br />
building and construction,<br />
tourism and hospitality and<br />
advanced manufacturing.<br />
Feel free to contact me<br />
at sue.hickey@parliament.tas.gov.au<br />
www.tcci.com.au<br />
Trust a fragile asset<br />
By ELIZABETH PROUST<br />
AICD Chairwoman<br />
ORGANISATIONAL culture is essential<br />
to repair the trust divide.<br />
Throughout 2017, successive scandals<br />
in the finance sector, the arts, the not-forprofit<br />
sector, and governments perpetuated<br />
a significant trust decline in the Australian<br />
community.<br />
A spotlight was shone on workplace<br />
culture which has forced directors to consider<br />
what role we have in shaping those<br />
cultures.<br />
The culture of our workplaces has<br />
probably never been under greater scrutiny<br />
than it is today and boards have a<br />
crucial role in shaping, monitoring and<br />
changing our organisational cultures –<br />
across all sectors.<br />
If we, as directors, are not setting and<br />
requiring the cultures that our staff and<br />
the wider community expect, we cannot<br />
hope to repair the trust divide.<br />
A good culture can be a competitive<br />
advantage. Conversely, poor cultures<br />
damage employee and stakeholder outcomes,<br />
and when they result in visible<br />
failures – be they regulatory or ethical –<br />
they erode trust.<br />
In that vein, it is welcome that the<br />
most recent AICD Director Sentiment<br />
Index found that the vast majority of directors<br />
– 92 per cent – are actively trying<br />
to change the culture within their organisation.<br />
But what needs to change?<br />
There is no “one size fits all” approach<br />
to culture.<br />
Boards can play a role in regaining<br />
Elizabeth Proust<br />
trust through improved culture if their<br />
decisions are consistently in line with<br />
three key pillars:<br />
• accountability;<br />
• transparency; and<br />
• ethical behaviour.<br />
The lack of accountability and transparency<br />
in instances of financial or ethical<br />
wrongdoing is undoubtedly a driver<br />
of the trust deficit between Australians<br />
and their institutions.<br />
These may sound like straightforward<br />
principles – yet when stakeholders or<br />
politicians or commentators ask who<br />
is being held to account for failures –<br />
whether it be in corporate Australia or in<br />
the not-for-profit sector, the answer has<br />
too often sounded hollow.<br />
Without greater accountability and<br />
transparency, a culture of ethical behaviour<br />
cannot take hold and there is no<br />
pathway towards regaining community<br />
trust.<br />
In addition to ensuring these values<br />
underpin our decisions, we as directors,<br />
need to model the ethics we want to take<br />
hold in an organisation. If we fail to model<br />
the cultural traits we ask of employees<br />
or volunteers, we can hardly be surprised<br />
when the desired culture fails to appear.<br />
And if we on boards reward success,<br />
we need to hold ourselves accountable<br />
and punish failure.<br />
We must be transparent in doing so<br />
– explaining clearly the reasons why<br />
decisions have or have not been taken,<br />
honestly and fully. The tenets of organisations’<br />
social contract are changing as<br />
the world changes, and directors must engage<br />
with that, rather than dismiss it, if<br />
we are to rebuild trust.<br />
AICD is holding director’s<br />
briefings on the Board<br />
and organisational<br />
culture.<br />
• Ulverstone, Tue May 8.<br />
• Launceston, Wed May 9.<br />
• Hobart, Thur May 10.<br />
For more information contact 03<br />
6242 2200.<br />
Know before you go.<br />
The new HICAPS Go app allows you to get a quote<br />
for out-of-pocket costs, before your appointment*.<br />
Pay and claim in an instant, all from your phone.<br />
To find out more visit www.hicaps.com.au/go<br />
or download the app today.<br />
1300 651 988 stlukes.com.au<br />
*Only available for members of participating health funds. ©<strong>2018</strong> HICAPS Pty Ltd ABN 11080 688 866. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered<br />
in the U.S. and other countries. Google Play and the Google Play logo are trademarks of Google Inc. A134199-1017 180102
8 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong><br />
THOUGHT LEADERSHIP<br />
www.tcci.com.au<br />
OK to speak up about mental health<br />
Jane<br />
Stanton<br />
President, Chartered Accountants<br />
Australia and New Zealand<br />
RESEARCH by the Australian<br />
Bureau of Statistics estimates<br />
that of the 45 per cent of Australians<br />
who will experience<br />
some form of mental illness<br />
during their lifetime, anxiety<br />
and depression are the most<br />
common.<br />
Less than half of all individuals<br />
suffering a mental illness<br />
will seek help.<br />
These figures will not be<br />
new to most of you, but as<br />
someone who has battled<br />
chronic depression and anxiety<br />
my whole adult life and<br />
in my new role as President of<br />
Chartered Accountants Australia<br />
and New Zealand, I’d like<br />
to focus on how we can equip<br />
professionals, particularly in<br />
small and medium businesses<br />
to support wellbeing in the<br />
workplace.<br />
I’m coming to Tasmania in<br />
May, along with my fellow<br />
board members, and will be<br />
meeting with as many of our<br />
members as I can to discuss<br />
these issues with them.<br />
CAANZ has close to 1000<br />
members in Tasmania, the vast<br />
majority of them in small and<br />
medium businesses.<br />
Most people think that being<br />
an accountant is just about<br />
numbers and compliance but<br />
in reality it is a very small part<br />
of the job.<br />
The client relationship is a<br />
unique one and as a chartered<br />
accountant, you are dealing<br />
with a very personal aspect<br />
of people’s lives. Clients are<br />
coming to see you at a time<br />
when they are often under particular<br />
stress and are vulnerable,<br />
often emotional and uncomfortable<br />
at discussing their<br />
affairs in such forensic detail.<br />
A Monash University <strong>Business</strong><br />
School study published<br />
last year found that accountants<br />
had higher than average<br />
stress levels and most notable,<br />
women in the 30-34 age group<br />
reported significantly higher<br />
stress levels compared to their<br />
male colleagues.<br />
Many people struggle with<br />
wellbeing but it is perhaps<br />
most endemic in regional and<br />
remote areas, particularly<br />
when a unique event has occurred<br />
such as natural disaster.<br />
Practitioners will be more<br />
often than not also living in<br />
these communities themselves,<br />
and the most compelling<br />
conversation you can ever<br />
have is with someone who is<br />
experiencing the same challenges<br />
you are.<br />
As an employer or team<br />
leader, it’s important to not<br />
only ask your colleagues “are<br />
you ok” but identify what signals<br />
to look for in others, be it<br />
colleagues or clients that may<br />
indicate they are struggling.<br />
As an employer or team leader, it’s important to not only ask your colleagues “are you ok” but identify what<br />
signals to look for in others.<br />
Part of my journey has been<br />
to accept that my mental health<br />
is something I have to manage<br />
on a constant basis, that I have<br />
limits and need to work within<br />
them.<br />
My biggest professional<br />
challenge has been admitting<br />
that it is ok to suffer a mental<br />
illness.<br />
My mental health doesn’t<br />
define me and I’ve worked out<br />
ways to maximise what I can<br />
do professionally and be the<br />
best version of myself.<br />
It is crucially important that<br />
employers, leaders and employees<br />
be supported in the<br />
workplace, including through<br />
flexible working conditions<br />
where possible as well as<br />
through simple conversations<br />
and offering support and assistance<br />
when someone admits<br />
they are struggling.<br />
CAANZ and Mental Health<br />
First Aid have put together<br />
a resource to help members<br />
manage their own wellbeing,<br />
encourage them to ask colleagues<br />
“are you ok” and educate<br />
them on what signs to<br />
watch for that may indicate<br />
someone is struggling in some<br />
way.<br />
Organisations such as beyondblue,<br />
the Black Dog Institute,<br />
Sane Australia, Mind<br />
Australia, Headspace, Lifeline<br />
and SPEAK UP! Stay ChatTY<br />
do incredible work in providing<br />
assistance and information<br />
to individuals and businesses.<br />
<strong>Business</strong>es are team environments<br />
and are most productive<br />
when everyone is<br />
healthy.<br />
It is imperative if Tasmania’s<br />
economy is to continue<br />
to grow that this includes<br />
a focus on mental health and<br />
wellbeing.<br />
It is the norm, not the exception<br />
to suffer a mental illness<br />
at some point in your life<br />
and its ok to speak up.<br />
Inspections identify common workplace hazards<br />
BEING able to identify hazards<br />
in the workplace is a key<br />
to ensure that your workers<br />
are safe. The difficulty is to<br />
ensure that the method you<br />
use to identify hazards is user<br />
friendly.<br />
A simple method to ensure<br />
that all hazards are identified<br />
is to divide the worksite into<br />
different aspects of work:<br />
• physical work environment;<br />
• equipment, materials and<br />
substances used;<br />
• work tasks and how they<br />
are performed;<br />
• work design and management.<br />
To determine the hazards in<br />
each work area, the hazards<br />
themselves can be divided<br />
into common hazard areas:<br />
• manual tasks;<br />
• gravity;<br />
• electricity;<br />
• machinery and equipment;<br />
• hazardous chemicals;<br />
• extreme temperatures;<br />
• noise;<br />
• radiation;<br />
• biological; and<br />
• psychosocial hazards.<br />
These common hazards can<br />
Craig<br />
Hortle<br />
Workplace Health & Safety<br />
be identified in the work area<br />
by implementing a workplace<br />
inspection.<br />
Regularly walking around<br />
the workplace and observing<br />
how things are done can<br />
help you predict what could<br />
or might go wrong. Look at<br />
how people actually work,<br />
how plant and equipment<br />
is used, what chemicals are<br />
around and what they are used<br />
for, what safe or unsafe work<br />
practices exist as well as the<br />
general state of housekeeping<br />
You can also consult your<br />
workers. Ask your workers<br />
about any health and safety<br />
problems they have encountered<br />
in doing their work and<br />
any near misses or incidents<br />
that have not been reported.<br />
Worker surveys may also<br />
be undertaken to obtain information<br />
about matters such as<br />
workplace bullying, as well as<br />
muscular aches and pains that<br />
can signal potential hazards.<br />
Finally you may want review<br />
available information<br />
for example, risks relevant to<br />
particular industries and types<br />
of work is available from regulators,<br />
industry associations,<br />
unions, technical specialists<br />
and safety consultants.<br />
Manufacturers and suppliers<br />
can also provide information<br />
about hazards and safety<br />
precautions for specific substances<br />
(safety data sheets),<br />
plant or processes (instruction<br />
manuals). Analyse your<br />
records of health monitoring,<br />
workplace incidents, near<br />
misses, worker complaints,<br />
sick leave and the results of<br />
any inspections and investigations<br />
to identify hazards.<br />
If someone has been hurt<br />
doing a particular task, then<br />
a hazard exists that could hurt<br />
someone else. These incidents<br />
need to be investigated<br />
to find the hazard that caused<br />
the injury or illness.<br />
Identifying hazards helps prevent incidents.<br />
For information on how to achieve this please<br />
contact Craig Hortle or Janelle Whitehouse at<br />
the TCCI on 1300 559 122 or contact safety@<br />
TCCI.com.au
<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong> 9<br />
Portable<br />
Long<br />
Service<br />
leave<br />
discount<br />
pays off<br />
FOCUS ON BUSINESS<br />
Chris Atkins<br />
with Mark<br />
Millhouse,<br />
from Vos<br />
Construction<br />
Employers in the building<br />
and construction<br />
industry who contribute to<br />
a Portable Long Service<br />
Scheme are celebrating,<br />
with more than $1.1 million<br />
flowing back into the<br />
industry<br />
TasBuild has reduced<br />
the contribution required<br />
by employers by 1.8 per<br />
cent of an em-ployee’s<br />
ordinary pay rate.<br />
This represents a discount<br />
of at least 28 percent<br />
over the cost to actually<br />
fund the liability.<br />
TasBuild is responsible<br />
for providing long<br />
service benefits to workers<br />
in the construction industry<br />
and ensuring that<br />
both employee entitlements<br />
are protected and<br />
a level playing field for<br />
employers in Tasmania is<br />
maintained.<br />
Employers make payments<br />
into the fund,<br />
which go towards the industry’s<br />
employee’s long<br />
service entitlements.<br />
When employees<br />
move from one employer<br />
to the next, their entitlements<br />
go with them.<br />
Chief Financial Officer<br />
of Vos Construction &<br />
Joinery Pty Ltd, Adrian<br />
Bott, said that the move<br />
would have a positive<br />
impact on their business,<br />
which currently employs<br />
230 <strong>Tasmanian</strong>s - the majority<br />
of whom have contributions<br />
made into Tas-<br />
Build’s Portable Long<br />
Service Fund by Vos.<br />
“This decision will see<br />
up to $20,000 of funds<br />
becoming available each<br />
year to be invested back<br />
into our business which<br />
we can spend on training<br />
and capital equipment,<br />
it’s great for our workforce<br />
and the local economy,”<br />
Mr Bott said.<br />
“The Portable Long<br />
Service Scheme managed<br />
by TasBuild is<br />
positive for employers<br />
because it provides an incentive<br />
for good people<br />
to remain in the industry<br />
and when employees<br />
take leave there is no impact<br />
on our cash flow.”<br />
“Vos has a strong and<br />
loyal workforce with<br />
many employees qualifying<br />
for long service leave<br />
while working with the<br />
company,” he said.<br />
TasBuild CEO Chris<br />
Atkins said the TasBuild<br />
board took the decision<br />
to reduce the required<br />
contribution employers<br />
make after careful management<br />
and long-term<br />
growth of the fund.<br />
“This is the first time<br />
the rate has changed<br />
since 2009, the reduction<br />
in employer contributions<br />
comes off the<br />
back of careful investments<br />
and management<br />
of funds that has seen the<br />
fund grow from $45.6<br />
million in 2009 to $116.5<br />
million to June 2017,<br />
with liabilities growing<br />
from $49.0 million to<br />
$95.1 million in the same<br />
period,” he said.<br />
“Our performance has<br />
been improving year on<br />
year for some time now<br />
and we are delighted that<br />
we are able to lower the<br />
costs of doing business<br />
for the industry.<br />
“We see a reduction in<br />
costs for employers as a<br />
positive for them and the<br />
industry. A more profitable<br />
sector will provide<br />
more employment and<br />
training opportunities for<br />
<strong>Tasmanian</strong> construction<br />
workers.”<br />
TasBuild pays out<br />
more than $7.5 million in<br />
entitlements to workers<br />
in the construction industry<br />
annually.<br />
All members of the<br />
construction industry including<br />
employers and<br />
relevant workers are required<br />
to be registered<br />
with TasBuild.<br />
The changes came into<br />
effect from October 1st<br />
2017 and the industry’s<br />
employers and employee<br />
are enjoying the flow-on<br />
benefits.
10 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong><br />
NEWS APPOINTMENTS and ANNOUNCEMENTS<br />
Patients opt for private treatment<br />
PAUL LUPO<br />
St.LukesHealth CEO<br />
GROWING demand for elective<br />
surgery continues to put a strain on<br />
the performance and perception of<br />
our hospitals, ultimately impacting<br />
on the confidence of the <strong>Tasmanian</strong><br />
public health system.<br />
As a not-for-profit health insurance<br />
fund, St.LukesHealth has also<br />
experienced an increase in the number<br />
of members accessing private<br />
hospital services, reflective of national<br />
trends.<br />
We saw an 8.61 per cent rise in<br />
hospital admissions last year, assisting<br />
21,482 members throughout<br />
their hospitalisation process.<br />
It is well documented that even<br />
with their best intentions, Tasmania’s<br />
public hospital system has<br />
struggled to keep up with demand<br />
and the waiting lists continue to<br />
frustrate those needing surgery.<br />
<strong>Tasmanian</strong>s confidence in the<br />
overall quality of the state’s health<br />
system has declined, however there<br />
is still a belief that better quality of<br />
care is available in the private sector.<br />
Confidence levels are reflected<br />
in the latest IPSOS survey results,<br />
which detailed that those going<br />
through the public health system<br />
had an average waiting time of 89<br />
days for elective surgery, while those<br />
with private health insurance only<br />
waited 25 days.<br />
These national statistics are reflective<br />
of what we are experiencing<br />
here in Tasmania.<br />
Of the 748,000 patients nationwide<br />
admitted to public hospitals,<br />
general surgery (surgery on abdominal<br />
organs, including breast surgery)<br />
accounted for 22 per cent of those<br />
admissions while 15 per cent were<br />
admitted for orthopaedic surgery.<br />
With the challenge of meeting increasing<br />
needs driven by a higher<br />
prevalence in chronic conditions,<br />
The<br />
Launceston<br />
General<br />
Hospital is one<br />
of the state’s<br />
public<br />
facilities that<br />
is under<br />
strain.<br />
more needs to be done in the preventative<br />
health space with chronic<br />
conditions like arthritis, asthma,<br />
cancer, pulmonary and cardiovascular<br />
diseases, diabetes and mental<br />
health conditions now commonplace<br />
in society.<br />
In 2017, we assisted members<br />
with procedures related to these<br />
chronic conditions such as gastroenterology<br />
(15 per cent) eye surgery<br />
(8 per cent), cataracts (5 per<br />
cent), chemotherapy (5 per cent)<br />
and psychiatric care (4 per cent).<br />
We also helped our members<br />
with joint investigations, dialysis,<br />
gynaecological and non-cosmetic<br />
plastic surgery.<br />
The newly reinstated State Liberal<br />
Government has announced<br />
that in its first 100 days it will<br />
make health a priority – with plans<br />
for a co-located private hospital in<br />
Launceston to be considered and<br />
an increase in the number of mental<br />
health beds in Hobart.<br />
We look forward to the roll-out<br />
of these plans and seeing what outcomes<br />
the government delivers for<br />
both public and private patients.<br />
Improvements in medical care<br />
have enabled us to live longer<br />
when burdened with illness or<br />
disease, which in turn has placed<br />
strain on an already stretched<br />
health system.<br />
Public or private – no one wants<br />
a health system under strain.<br />
We will continue to advocate<br />
strongly on behalf of members<br />
and the <strong>Tasmanian</strong> community for<br />
the best possible care regardless of<br />
lifestyle and financial situation.<br />
Boost for MONA’s<br />
$300m hotel plan<br />
MONA’S $300 million hotel<br />
expansion plans have been<br />
given a boost, after signing a<br />
memorandum of understanding<br />
with TasWater to deal<br />
with the water body’s Cameron<br />
Bay waste site.<br />
“The signing of the MoU<br />
allows our organisations to<br />
combine expertise and create<br />
a solution that is both<br />
fit-for-purpose and delivers<br />
economic benefit to the community,”<br />
TasWater chairman<br />
Miles Hampton said.<br />
“We will look at upgrading<br />
the existing sewage treatment<br />
plant to a standard that<br />
will allow concurrent operation<br />
of the plant and MONA’s<br />
redevelopment.<br />
Mona has proposed an extrordinary<br />
development of its<br />
Berriedale site with a fivestar,<br />
172-room hotel featuring<br />
a 53-metre “Gold Gate<br />
Bridge” architectural span<br />
over the water, a 1000-plus<br />
seat theatre and a three-level<br />
library.<br />
Hotel access will be mainly<br />
via the water, on Venice-style<br />
motoscafi ferries.<br />
In contrast to progress<br />
on David Wash’s latest development,<br />
plans for Fragrance<br />
Group’s controversial<br />
210-metre hotel tower near<br />
the waterfront have been<br />
stalled and another project by<br />
the Singapore-based group<br />
drastically downsized.<br />
After pubic backlash the<br />
Fragrance Group said it had<br />
put the Davey Street development<br />
on hold and its second<br />
hotel proposal, in Collins<br />
Street, has been scaled back<br />
from 94 metres to 50 metres.<br />
MONA’s proposed hotel HOMO and, inset, the Frangance Group’s stalled 210-metre<br />
waterfront tower.<br />
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Kiwis claim manuka<br />
TASMANIA’S iconic<br />
manuka honey brand remains<br />
threatened by a<br />
group of New Zealand<br />
honey producers trademarking<br />
the words “manuka<br />
honey” in the UK,<br />
says Federal Labor.<br />
The Australian Manuka<br />
Honey Association is<br />
fighting this act and has<br />
sought financial support<br />
through the Commonwealth<br />
Government’s<br />
Special Circumstances<br />
Scheme administered<br />
by the Attorney General’s<br />
department, Shadow<br />
Minister for Manufacturing<br />
and Science Nick<br />
Champion said.<br />
“If the $165,000 grant<br />
is approved the AMHA<br />
will oppose the New<br />
Zealand trademark,” said<br />
Mr Champion, after visiting<br />
Blue Hills in the<br />
state’s North West.<br />
“Labor supports the<br />
industry application and<br />
calls upon the Commonwealth<br />
to expedite its<br />
processing,” Mr Champion<br />
said.<br />
Braddon Labor MHR<br />
Justine Keay said manuka<br />
honey has been produced<br />
in Tasmania since<br />
1831 and nationally it is<br />
a $250 million industry.<br />
“There is also an irony<br />
that New Zealand<br />
honey producers would<br />
want to claim the manuka<br />
name as their own,<br />
when the species of plant<br />
from which it is produced,<br />
Leptospermum, is<br />
thought to have originated<br />
in Tasmania.”<br />
WP - Advert Mar17.indd 1<br />
4/04/2017 1:15:43 PM
<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong> 11<br />
EVENTS NEWS<br />
ABOVE: Graham Lewis of Bentley Workspaces, left, and<br />
Alex Newman of Xsquared Architects.<br />
ABOVE: Daniel Lane of Preston Lane, left, and Jayden Lewis of<br />
Bentley Workspaces.<br />
LEFT: Jeremy<br />
Ferguson, left,<br />
Steve<br />
Lucius and<br />
Sam Haberle<br />
of S. Group<br />
Consulting.<br />
EVENT:<br />
IT’S OUT THERE - Bentley Workspaces<br />
Hobart showroom opening<br />
LOCATION:<br />
Bentley Workspaces Hobart studio<br />
DATE:<br />
Wednesday, March 21, <strong>2018</strong><br />
LEFT:<br />
Jesse<br />
French,<br />
left, and<br />
Kirsten<br />
Fox of<br />
Dock4<br />
Architects.<br />
LEFT:<br />
Richelle<br />
Bethke, left,<br />
and Chris<br />
McShane of<br />
CSIRO <strong>Business</strong><br />
and<br />
Infrastructure<br />
Services.
PROPERTY MATTERS<br />
<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - APRIL <strong>2018</strong> 12<br />
CBD upgrade lifts retail demand<br />
Scott Newton<br />
Property Matters with<br />
Knight Frank<br />
Rob Dixon, Director - Commercial Sales<br />
and Leasing (North) looks at northern retail<br />
shop vacancies and asks: Are vacancy<br />
levels in Launceston CBD high?<br />
“LAUNCESTON CBD Retail<br />
is in need of a major refurbishment,<br />
due to the extremely<br />
high vacancy in the<br />
city...”<br />
We hear comments like<br />
this frequently from retailers,<br />
shoppers and consultants in<br />
viewing the status of occupancy<br />
of shops in the CBD of<br />
Launceston.<br />
The Launceston CBD is<br />
about to undergo a significant<br />
refurbishment as part of<br />
a transformation of the city<br />
centre, with a number of projects<br />
designed to stimulate activity<br />
within the city centre.<br />
The “City Heart Project”<br />
aims to make central Launceston<br />
the premier business,<br />
retail and lifestyle hub<br />
in Northern Tasmania, with<br />
works soon to commence on<br />
the Brisbane Street Mall, being<br />
the premier strip of retail<br />
shops in the city.<br />
The relocation of the University<br />
of Tasmania Newnham<br />
Campus to the Inveresk<br />
site will create a dynamic and<br />
exciting university precinct.<br />
With these exciting projects<br />
on the go, the economic<br />
landscape is positive with<br />
Tasmania leading the nation<br />
in retail sales growth over the<br />
past 12 months to July 2017.<br />
The figures show the<br />
state’s retail sales grew by<br />
5.2% over the period, significantly<br />
higher than the national<br />
average of 3.4%.<br />
So, does Launceston have<br />
a high number of retail vacancies<br />
within the core CBD?<br />
A study by Knight Frank<br />
looked at the retail activi-<br />
Upgrades to Launceston’s<br />
CBD will help improve retail<br />
vacancy rates.<br />
ty within a grid bounded by<br />
George, York and Paterson<br />
Streets and Kingsway.<br />
As at December 2017, we<br />
have estimated the vacancy<br />
to be at a level of 3,500sqm<br />
or 6.1% of the area (or 4.5%<br />
excluding the ex-Birchalls<br />
vacancy).<br />
The raw data includes an<br />
area of about 1,000sqm comprising<br />
the ex-Birchalls tenancy,<br />
which is expected to be<br />
occupied upon completion of<br />
the City Heart Project works<br />
proposed for the Brisbane<br />
Street Mall.<br />
The research focused on<br />
each street and identified the<br />
grouping of the retail sectors<br />
across the area.<br />
There has been recent public<br />
comment about the status<br />
of St John Street and the perceived<br />
high level of vacancy<br />
in this precinct. The data<br />
indicated a vacancy level of<br />
approx 11.0% against the city<br />
average of 4.5%.<br />
A number of retail precincts<br />
in the city continue to<br />
remain popular with retailers<br />
and shoppers, with George<br />
Street vacancies falling significantly<br />
in the past 18<br />
months.<br />
Strong demand for vacant<br />
space in George Street has<br />
resulted in vacancies in the<br />
precinct at 4.3% with take-up<br />
going to see this figure continually<br />
fall.<br />
National retailers are certainly<br />
making it very clear to<br />
agents of the size and style<br />
of retail space they are seeking<br />
in order to combine the<br />
“bricks and mortar experience”<br />
with “in store on-line<br />
sales”.<br />
They continue striving to<br />
create the shopping experience<br />
to lure shoppers back<br />
into the city.<br />
Launceston CBD retail vacancies<br />
are very manageable,<br />
and continual investment<br />
will see the position strengthen<br />
even further as local tier<br />
retailers return to the market.<br />
PROPERTY VIEW<br />
APRIL <strong>2018</strong><br />
Outline indicative only<br />
For sale by offer<br />
WELL LOCATED 1,000SQM<br />
CLEAR SPAN<br />
1 / 73 Droughty Point Road, Rokeby<br />
Well established industrial area with tenants such as<br />
Viridian, Toxfree, Repco, Eastside Activities Centre.<br />
Subject to short term lease (up to 28 February,<br />
2019) at $6,500 per month gross rent (+GST).<br />
• 1,000sqm (approx) and warehouse/workshop<br />
• Amenities including toilet/shower and<br />
office/lunchroom<br />
• 24m width, 42m length, with 8m minimum height<br />
• 3 phase power, 5 tonne gantry crane<br />
• 10 carpark spaces, 12m wide x 7m high<br />
access<br />
Matthew Wright 0458 290 588<br />
Ian Reed 0419 670 501<br />
View at KnightFrank.com.au/4168016<br />
For sale by expressions of interest<br />
STRATEGIC DEVELOPMENT SITE<br />
553-559 Pass Road, Mornington<br />
Situated adjacent to the rapidly expanding new<br />
homes area of Mornington, approximately 8 km<br />
east of Hobart’s CBD., this property is strategically<br />
placed to benefit from future expansion<br />
• Land area of 8.7 ha (approx.) over two titles<br />
with extensive road frontages<br />
• Currently zoned “Rural Living”<br />
• Improved with a 2/3 bedroom residence on<br />
one title plus a building currently utilised as<br />
a veterinary clinic<br />
• The property is being sold with vacant<br />
possession<br />
Richard Steedman 0408 559 046<br />
Scott Newton 0409 186 261<br />
View at KnightFrank.com.au/4153002<br />
SOLD<br />
For sale by expressions of interest<br />
PROMINENT CORNER SITE<br />
153 Macquarie Street, Hobart<br />
Knight Frank is pleased to present to the market<br />
this flexible commercial building in a first class<br />
CBD location.<br />
• Prominent corner site in a core CBD location,<br />
superb exposure to Macquarie<br />
• Street, one of Hobart´s main arterial roads<br />
• Multi tenanted building with good holding<br />
income, flexibility with existing tenants terms<br />
• A good investment opportunity with<br />
development upside (STCA)<br />
• Circa 1910 brick building with attractive facade<br />
• Land area 191sqm (approx)<br />
• Build area: 508sqm (approx)<br />
Matthew Wright 0458 290 588<br />
View at KnightFrank.com.au/4034976<br />
For sale by expressions of interest<br />
RARE FREESTANDING COLES<br />
260 Sandy Bay Road (corner Russell Crescent)<br />
• Secure 10+ year lease plus 10 year option<br />
through December 2038<br />
• Proven trader: Sales constantly above turnover<br />
threshold and growing at an average of 5.44%<br />
pa since 2013<br />
• Significant 2,729sqm store, upgraded in<br />
summer 2017/18 to Coles requirements<br />
• Strategic 4,065sqm corner site with 100<br />
on-site car spaces and seamless integration<br />
to adjoining McDonald’s car park<br />
• Net passing income: $728,000 pa (actual<br />
December 2017) / Forecast net income:<br />
$787,000 pa (December <strong>2018</strong>)<br />
Matthew Wright 0458 290 588<br />
View at KnightFrank.com.au/4125141<br />
5 Victoria Street, Hobart 41 York Street, Launceston Shop 8, 48-54 Oldaker Street, Devonport<br />
P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568