29.08.2018 Views

Tasmanian Business Reporter September 2018

Welcome to the September edition of the Tasmanian Business Reporter. After a crazy week in Federal politics, this month you'll read about the Tasmanian Chamber of Commerce's request to new Prime Minister Scott Morrison for action on more than $133 million of promises made to Braddon in July's by-election. You'll also find details of Tasmania's construction boom, which is predicted to continue for the foreseeable future, the launch of I-PREP, a University of Tasmania program set to align businesses with talented international students and a powerful column from TCCI Chair Susan Parr reinforcing the Chamber's call for local council amalgamation.

Welcome to the September edition of the Tasmanian Business Reporter.

After a crazy week in Federal politics, this month you'll read about the Tasmanian Chamber of Commerce's request to new Prime Minister Scott Morrison for action on more than $133 million of promises made to Braddon in July's by-election.

You'll also find details of Tasmania's construction boom, which is predicted to continue for the foreseeable future, the launch of I-PREP, a University of Tasmania program set to align businesses with talented international students and a powerful column from TCCI Chair Susan Parr reinforcing the Chamber's call for local council amalgamation.

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

4 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - SEPTEMBER <strong>2018</strong><br />

THOUGHT LEADERSHIP<br />

Over-representation<br />

breeding self-interest<br />

Susan<br />

Parr<br />

TCCI Chair<br />

TASMANIA is growing like<br />

Topsy who is outgrowing her<br />

clothes, shoes and bed.<br />

Like Topsy, Tasmania now<br />

is outgrowing our governance<br />

systems and our capacity to<br />

manage and plan across a<br />

range of current and future<br />

challenges.<br />

Tasmania’s population is<br />

just over 500,000. We have<br />

29 councils with 263 elected<br />

members. The oft repeated<br />

motherhood statement that<br />

“local government is the tier<br />

of government closest to the<br />

people” and therefore is the<br />

“most representative” is too<br />

readily accepted.<br />

Having so many elected<br />

members for such a small<br />

state raises the question of<br />

“who is representing whom or<br />

what?”<br />

It is clear that with such a<br />

concentration of representation,<br />

self-interest, personal<br />

preferences and philosophies<br />

assume an importance that is<br />

disproportionate to the total<br />

community interest.<br />

I believe that it has encouraged<br />

<strong>Tasmanian</strong>s to think<br />

that, if as an individual, I do<br />

not like or approve of a proposal,<br />

then I can expect it to<br />

be stopped or significantly<br />

modified.<br />

Because a candidate for<br />

election only needs a very few<br />

votes to succeed, the whole<br />

community perspective is not<br />

rigorously considered.<br />

There is no incentive to<br />

consider how neighbouring<br />

municipalities might be impacted,<br />

so the whole state<br />

continues to have absurd differences<br />

in service provision.<br />

The recent deplorable results<br />

of local government<br />

performance in governance,<br />

financial planning and the<br />

provision of services is a<br />

By TOM O’MEARA<br />

THREE local authorities would<br />

replace the state’s 29 councils in a<br />

bold new plan floated by the <strong>Tasmanian</strong><br />

Chamber of Commerce<br />

and Industry.<br />

With the <strong>Tasmanian</strong> economy<br />

at its strongest in recent history,<br />

the state’s peak business organisation<br />

has called on the State Government<br />

and Labor Opposition to<br />

reform local government once and<br />

for all.<br />

TCCI CEO Michael Bailey<br />

said the chamber’s vision would<br />

improve efficiency and provide<br />

greater transparency.<br />

The TCCI has been a strong advocate<br />

to restore State Parliament<br />

to 35 seats, and now it wants to review<br />

what it says is an antiquated<br />

and inefficient local government<br />

sector.<br />

Mr Bailey said the system was<br />

not based on modern best practice.<br />

“The days have gone when every<br />

town in Tasmania needed a local<br />

council and it is time to ensure<br />

there is more transparency in the<br />

sector,” he said.<br />

“In Victoria rate capping is now<br />

a way of life, with consumers and<br />

business able to compare their<br />

council performance with others<br />

through the “Know Your Council”<br />

website.<br />

“Not only are consumers and<br />

business able to compare rates in<br />

their municipality with those paid<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 12,000 M O N T H LY<br />

Call for council cull<br />

in neighbouring council areas,<br />

but they are also able to compare<br />

the services offered and make informed<br />

decisions about what their<br />

local government area delivers.<br />

“There is no way to do that in<br />

Tasmania.”<br />

Tasmania has 29 councils, and<br />

263 councillors, for a population<br />

of just over 500,000 people, ranging<br />

in size from under 1000 people<br />

on Flinders Island to more<br />

than 67,000 people in Launceston.<br />

“We have 4000 local government<br />

employees, 23,000 State<br />

Government employees and<br />

just under 3500 Commonwealth<br />

Government employees, which<br />

equates to one employee for every<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 />

AUGUST <strong>2018</strong><br />

AXE THEM<br />

O\<br />

TCCI floats<br />

radical reform<br />

29 to 3<br />

JOIN TODAY!<br />

Last month’s <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong>’s coverage<br />

of the TCCI campaign launch.<br />

warning that we cannot continue<br />

as we have. The system<br />

is broken and threatens the future.<br />

Tasmania has a unique<br />

opportunity to create a more<br />

capable, better skilled and<br />

informed local government<br />

system to serve the 500,000<br />

people who live here and to<br />

ensure that services provided<br />

by local government meet the<br />

current and future needs of all<br />

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

It is time to bite the bullet.<br />

www.tcci.com.au<br />

A fair price for<br />

your business<br />

Dean<br />

Demeyer<br />

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

WHEN it’s time to sell<br />

your business who should<br />

advise you on the eventual<br />

asking price – an accountant<br />

or a business broker?<br />

Some accountants specialise<br />

and have appropriate<br />

qualifications in<br />

valuing businesses.<br />

There are other professionals<br />

however who are<br />

better at providing you<br />

with the market value.<br />

Professional business<br />

brokers deal every day<br />

with buying and selling<br />

businesses. They have<br />

access to databases of<br />

sales, current market<br />

multiples for all industries,<br />

and knowledge of<br />

lender’s idiosyncrasies -<br />

all necessary to evaluate<br />

what a buyer may offer<br />

for your business in the<br />

current market. Knowing<br />

how buyers are thinking is<br />

useful.<br />

For example, an accountant<br />

will generally evaluate<br />

your business on the basis<br />

of its value on paper. This<br />

process relies on historical<br />

financial data and<br />

commonly used return on<br />

investment multipliers.<br />

Let’s say the net profit<br />

is $100,000 and the ROI is<br />

33 per cent. The accountant<br />

will say the business is<br />

worth $300,000.<br />

A broker will use a<br />

similar process but also<br />

take into account current<br />

market trends, the bank’s<br />

appetite for lending to that<br />

industry, the number of<br />

buyers enquiring about that<br />

industry to obtain a more<br />

realistic price. So the 33<br />

per cent ROI may actually<br />

to be closer to 40 per cent<br />

altering the listing price to<br />

$250,000.<br />

Dean Demeyer is<br />

a chartered accountant<br />

and licensed business<br />

broker<br />

Supporting<br />

those making<br />

a better<br />

community.<br />

Just one reason why our<br />

members voted us number one<br />

for customer satisfaction<br />

in Australia, two years in a row! *<br />

Mitch McPherson<br />

Founder, SPEAK UP! Stay ChatTY<br />

We’re your number one health insurer. Talk to us today!<br />

1300 651 988 stlukes.com.au<br />

for Customer Satisfaction*<br />

two years in a row!<br />

* #1 Roy Morgan Customer Satisfaction Awards: Private Health Insurer of the Year – 2016 & 2017. St.LukesHealth ABN 81 009 479 618 180376

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!