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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 />

TCCI<br />

MEMBERSHIP<br />

benefits your business<br />

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

and Industry is an independent<br />

membership organisation that<br />

positively leads and supports the<br />

<strong>Tasmanian</strong> business community.<br />

TCCI provides valuable support to its members<br />

through advocacy and a range of programs<br />

and services including:<br />

> Customised membership to achieve<br />

your business objectives<br />

> Workplace relations advice<br />

> Workplace health and safety<br />

> Networking and promotion<br />

> Training and workforce development<br />

> Events<br />

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

of Commerce and Industry<br />

Hobart | Launceston<br />

Ph: 1300 559 122 www.tcci.com.au<br />

JOIN TODAY!


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 />

<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 />

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 />

Managing Editor: Tom O’Meara<br />

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Editor: Becher Townshend<br />

0418 370 661<br />

Advertising and Special Projects<br />

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

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

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

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

<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 />

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When a business is<br />

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• These are highly critical<br />

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• Up-to-date numbers<br />

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Demonstrate the<br />

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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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Warehousing<br />

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Online Ordering<br />

and Inventory<br />

Management<br />

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

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