Tasmanian Business Reporter May 2018
Welcome to the May edition of the Tasmanian Business Reporter. What a tumultuous first week back for Tasmanian Parliament. At the time of printing, surprise Speaker Sue Hickey hinted she may not be a member of the Liberal Party for long, leaving Will Hodgman's majority Liberal Government in a state of uncertainty – for the latest update visit www.tasmanianbusinessreporter.net.au. In this month's edition you'll read about unprecedented development and construction generating a huge economic windfall for Tasmania, a successful collaboration to promote jobs in the disability sector and details of AMC's involvement in a multi-billion dollar navy ship building program.
Welcome to the May edition of the Tasmanian Business Reporter.
What a tumultuous first week back for Tasmanian Parliament.
At the time of printing, surprise Speaker Sue Hickey hinted she may not be a member of the Liberal Party for long, leaving Will Hodgman's majority Liberal Government in a state of uncertainty – for the latest update visit www.tasmanianbusinessreporter.net.au.
In this month's edition you'll read about unprecedented development and construction generating a huge economic windfall for Tasmania, a successful collaboration to promote jobs in the disability sector and details of AMC's involvement in a multi-billion dollar navy ship building program.
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4 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - MAY <strong>2018</strong><br />
THOUGHT LEADERSHIP<br />
www.tcci.com.au<br />
Importers welcome competition<br />
Brett<br />
Charlton<br />
Agility Logistics<br />
WHILE <strong>Tasmanian</strong> exporters<br />
have been living in a sweet<br />
spot with the plethora of services<br />
available and competing<br />
ex-Tasmania, coupled with<br />
the assistance of the TFES<br />
extension, our importers have<br />
experienced the opposite with<br />
higher freight rates and limited<br />
space availability – especially<br />
ex-Asia.<br />
Importers would be happy<br />
to know that MSC Line has<br />
recently changed the rotation<br />
of their Capricorn service<br />
with Asia being connected via<br />
Singapore into Bell Bay without<br />
first discharging in Melbourne.<br />
With a weekly service that<br />
calls Singapore, Fremantle,<br />
Adelaide and then Bell Bay<br />
before Melbourne port, the<br />
transshipment costs and additional<br />
lifts that burden importing<br />
companies are negated<br />
somewhat – in some cases<br />
significantly.<br />
While this new service<br />
promises some much needed<br />
competition on the southbound<br />
sector (internationally)<br />
importers should be wary of<br />
the seasonal space restrictions<br />
ex the Asian countries<br />
and while we are seeing some<br />
reduced rate levels at the moment,<br />
there is constant pressure<br />
from all lines to increase<br />
and maintain higher freight<br />
rates particularly for import<br />
cargoes.<br />
We have recently been advised<br />
of a new general rate<br />
increase declaration for <strong>May</strong><br />
of US$200 per TEU ex-Asian<br />
ports – whether this is successful<br />
or not is yet to be seen,<br />
however importers should, as<br />
a matter of course, be mindful<br />
of the pressure of space<br />
ex-Asia and the effects this<br />
can have on pricing as well as<br />
timing of shipments (in peak<br />
times, the Capricorn Service<br />
will be in high demand and if<br />
space is not available, the history<br />
of the support of the other<br />
New family leave<br />
rules explained<br />
Abbey<br />
George<br />
Workplace Relations<br />
THE Fair Work Commission<br />
handed down decisions<br />
regarding domestic violence<br />
leave and family friendly<br />
working arrangements on<br />
March 26.<br />
In regards to domestic violence,<br />
the commission has<br />
made a decision to include<br />
model clause into Modern<br />
Awards that provide for domestic<br />
violence leave of five<br />
days to all employees (including<br />
casual employees)<br />
and some important points to<br />
note from the decision are as<br />
follows:<br />
• the leave is to be unpaid;<br />
• the leave will be made<br />
available in full at the commencement<br />
of each 12-month<br />
period (not accruing progressively<br />
during the year like<br />
other leave);<br />
• it won’t accrue from year<br />
to year;<br />
• the entitlement won’t be<br />
pro-rated, so part-time employees<br />
and casual employees<br />
will also receive the full five<br />
days each year;<br />
• employees won’t be required<br />
to take paid leave before<br />
accessing the unpaid<br />
domestic violence leave entitlement;<br />
• the drafting of the model<br />
clause will be concluded in<br />
the coming weeks and will be<br />
circulated for comment with a<br />
further hearing being scheduled<br />
in <strong>May</strong>; and<br />
• the view was also expressed<br />
by the commission<br />
that “employees should be<br />
able to access paid personal/<br />
carer’s leave for the purpose<br />
of taking family and domestic<br />
violence leave”.<br />
In regards to family friendly<br />
working arrangements, the<br />
commission has made a decision<br />
to include a model clause<br />
into modern awards that facilitate<br />
flexible working arrangements<br />
in relation to parental<br />
and caring responsibilities as<br />
follows:<br />
• the model clause is intended<br />
to expand the scope of the<br />
requirements for the request<br />
for flexible working arrangements<br />
currently in operation;<br />
• employees (including casuals)<br />
with at least six months<br />
service will become eligible<br />
to request a change in working<br />
arrangements relating to<br />
Transshipment costs and additional lifts that burden importing companies are<br />
negated somewhat with a new route that calls into Bell Bay before Melbourne.<br />
parental or caring responsibilities;<br />
• employers will be required<br />
to meet with employees who<br />
utilize this entitlement in<br />
an attempt to reach genuine<br />
agreement in accommodating<br />
the request before refusing it;<br />
• if an employer does refuse<br />
the request then they must<br />
confirm this in writing and<br />
provide a more comprehensive<br />
explanation than currently<br />
required including details<br />
of any changes agreed to as<br />
well as any other changes that<br />
could be offered to the employee;<br />
and<br />
• the commission is currently<br />
asking for submissions<br />
with a further hearing being<br />
scheduled in <strong>May</strong>.<br />
The full decisions can be<br />
accessed via the Fair Work<br />
Commission website: www.<br />
fwc.gov.au/ and the summaries<br />
of each decision can be<br />
found here:<br />
Domestic violence - www.<br />
fwc.gov.au/documents/sites/<br />
awardsmodernfouryr/<strong>2018</strong>fwcfb1691-summary.pdf<br />
Family friendly working<br />
arrangements - www.<br />
fwc.gov.au/documents/sites/<br />
awardsmodernfouryr/<strong>2018</strong>fwcfb1692-summary.pdf<br />
For more information<br />
contact the TCCI<br />
Helpline on 1300 765 123<br />
or TCCI on 1300 59 122<br />
or workplacerelations@<br />
tcci.com.au<br />
lines will be a consideration).<br />
Cheaper rates are great if<br />
there is space available – absolutely<br />
useless without the<br />
space though.<br />
The subject of coastal shipping<br />
has been discussed recently<br />
with a major shipping<br />
representative body undertaking<br />
a study into the viability<br />
of coastal shipping around<br />
Australia.<br />
The coastal shipping research,<br />
in the context of this<br />
discussion, is the ability for<br />
international shipping lines<br />
to be able to carry domestic<br />
shipments around the coast of<br />
Australia (cabotage).<br />
This discussion generates<br />
mixed feelings from different<br />
camps and there are some<br />
deep emotions that emerge<br />
when talking about this topic<br />
– the Federal Government has<br />
been discussing reform for<br />
WITH the recent state<br />
election now behind<br />
us, it is important to<br />
take stock of where<br />
we are as a state and<br />
continue as a government<br />
to deliver positive<br />
outcomes to support<br />
the <strong>Tasmanian</strong><br />
small business sector.<br />
We have a number<br />
of important initiatives<br />
in the small business<br />
space to assist with<br />
business development<br />
and growth, including<br />
grants for small businesses<br />
to take on a<br />
trainee or apprentice.<br />
It is pleasing to note<br />
that our strong support<br />
of the sector is<br />
reflected in the latest<br />
March Quarter<br />
Sensis business sur-<br />
some time, but not much has<br />
changed since cabotage came<br />
to a grinding halt in 2012.<br />
There have been times in<br />
the past, if you care to look,<br />
where I have called for cabotage<br />
to be reinstated (especially<br />
when the reform was<br />
one of the reasons for the<br />
withdraw of our international<br />
AAA service back in the<br />
day), but I have to admit that<br />
I am a little more cautious<br />
these days.<br />
.Consider my first report<br />
of the MSC service via Singapore<br />
into Bell Bay, cheaper<br />
freight rates - but what about<br />
the space – these lines are<br />
monsters and carry the majority<br />
of the freight around<br />
the planet – how can the<br />
commitment be cemented to<br />
Tasmania?<br />
Who is to say that if there is<br />
something shiny somewhere<br />
else they won’t simply pull up<br />
stumps and say “so long and<br />
thanks for the fish”. (Hitchhikers<br />
Guide reference).<br />
Whereas the likes of Toll,<br />
Searoad and TT Line have a<br />
vested and committed infrastructure<br />
and commitment<br />
to the Bass Strait trade that<br />
works and is indeed being invested<br />
with new vessels.<br />
We need to be careful to<br />
consider all aspects of the debate<br />
(in everything of course).<br />
Small business positive<br />
<strong>Business</strong><br />
Matters<br />
By a State<br />
Government<br />
spokesman<br />
...there is<br />
constant<br />
pressure<br />
from all<br />
lines to<br />
increase<br />
and maintain<br />
higher<br />
freight rates<br />
particularly<br />
for import<br />
cargoes.<br />
vey, which notes that<br />
the <strong>Tasmanian</strong> Government<br />
is the most<br />
popular in the nation<br />
with small and medium<br />
sized businesses<br />
(SMBs).<br />
Tasmania’s SMBs<br />
confidence levels are<br />
leading the nation<br />
at +54 index points,<br />
equal with the ACT.<br />
They are also the<br />
most confident about<br />
the direction of the<br />
economy, with the<br />
index sitting at +24<br />
points.<br />
Hobart has the highest<br />
confidence level<br />
of any capital city and<br />
regional confidence is<br />
also above average for<br />
Tasmania.<br />
These positive results<br />
follow on from our<br />
strong performance in<br />
the CommSec State<br />
of the States report<br />
and the recent NAB<br />
Monthly <strong>Business</strong> Survey,<br />
which reported on<br />
Tasmania’s positive<br />
economic direction<br />
and showed business<br />
confidence and conditions<br />
led the nation.<br />
But we won’t be<br />
resting on our laurels<br />
– instead we will continue<br />
to implement our<br />
agenda to take Tasmania<br />
to the next level to<br />
create more jobs and<br />
grow the economy.<br />
We will support the<br />
many small business<br />
owners who put much<br />
work into making their<br />
businesses thrive.