Tasmanian Business Reporter February 2019

FEBRUARY 2019
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
Full speed ahead
It’s all go for Tassie
• Tourism flying high, p3 • Job numbers build, p8 • Export orders for Incat, p9
Poll backs
council
mergers
Strong Australia
Network Business
Luncheon
14 February 2019
Hotel Grand
Chancellor
Hobart
RSVP: 7 February 2019
By TOM O’MEARA
BUSINESS leaders are increasing
pressure to dramatically reduce
council numbers in Tasmania following
a damning poll.
The Tasmanian Chamber of
Commerce and Industry has long
advocated the need to cull the
number of councils, last year revealing
a bold plan to downsize
councils from 29 to three.
The suggestion attracted strong
support from business and domestic
ratepayers with opposition
from government and Local Government.
But, politicians may now be
swayed by public opinion with
more than three quarters of Tasmanians
(76 per cent) believing
there are too many councils in the
state, according to a poll by the
Mercury newspaper.
The poll also showed that 83
per cent of Tasmanians supported
merging with 29 local government
areas deemed unacceptable.
And voter support for cutting
councils and merging has increased
since previous polls which
encouraged the Government to introduce
a voluntary amalgamation
process – a move that has since
failed.
Some councils have agreed to
merger discussions but have been
stymied by neighbouring councils
who don’t want to change.
TCCI CEO Michael Bailey said
it was time to rattle the cage.
Continued page 2
JENNIFER
WESTACOTT
BOOK NOW
ALAN
JOYCE
www.tcci.com.au/Events/Strong-Australia
or phone 1300 559 122
FRANCES
BENDER
EVENT PARTNERS
MICHAEL
BAILEY
MIKE
GRAINGER

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
2 Tasmanian Business Reporter - FEBRUARY 2019
NEWS
Fires delay windfarm works
BUSHFIRE in the state’s
Central Highlands have halted
construction of Goldwind
Australia’s $300 million Cattle
Hill Windfarm.
Forty eight wind turbines
will be built near the Waddamana
power station as part of
the wind farm project which
will return to construction
phase once the severe fire
threat eases, expected as we
go to print.
With the project planned
to be fully operational by
late this year, 120 staff have
been on site since last year to
prepare for the arrival of key
equipment.
TasPorts has welcomed the
first of the 68.75-metre-long
blades to Bell Bay ready for
transport to the site.
TasPorts Acting CEO Anthony
Donald said it was a
major infrastructure initiative
to coordinate.
“This has been a complex
project coordinating logistics
between all involved parties,”
he said.
“We are expecting all turbine
components to arrive
across six shipments over the
coming months.
“The components will be
The first of the 68.75-metre-long blades at Bell Bay ready for transport.
stored inside the port at Bell
Bay before making their way
to the project site via road
transport.”
The Cattle Hill Wind Farm
will have the capacity to power
63,500 Tasmanian homes.
Goldwind Australia Managing
Director John Titchen
said the Cattle Hill Wind
Farm project continued to
have significant local benefits.
“Goldwind appointed Hobart-based
Hazell Brothers
to undertake the full civil and
electrical works for the project
and Launceston-based
company Gradco to undertake
road upgrades to allow
for the delivery of wind tur-
This will
be a huge
economic
boost for the
West Coast
and
North West
bine components and associated
equipment,” he said.
Up to 150 staff are expected
on site during the peak of construction.
Construction is also progressing
on the $280 million
Granville Harbour wind farm.
Nearly 100 sections of wind
turbine towers, each weighing
almost 150 tonnes, have been
transported from Burnie Port
to a holding facility behind
Bunnings Warehouse before
they move on to their final
destination.
The 52-metre long, 6.1-metre
high components were escorted
by State Growth Transport
Safety Officers in one of
the largest road-based movements
ever seen in Tasmania.
“With Granville Harbour
and Cattle Hill under construction,
and Robbins Island
and Jim’s Plain in the
pipeline, more than 350 construction
jobs have already
been injected into regional
communities with more than
400 construction jobs and 95
ongoing roles on the table,”
Energy Minister Guy Barnett
said.
“This will be a huge economic
boost for the West
Coast and North West.”
The Government’s Tasmania
First energy policy aims
to make our state fully renewable-energy
self-sufficient
and to have the lowest regulated
power prices by 2022.
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
e dition
Tasmanian Business Reporter can now be delivered directly to your inbox. With our 30,000-strong monthly print
readership, our new up-to-date digital distribution will keep Tasmanians abreast of the all latest in local business
news. From this month we will distribute electronic editions of the Tasmanian Business Reporter as we go to print.
To confirm your copy sign up to our mailing list via
tbreditorial@fontpr.com.au
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
Tasmania’s business newspaper is published monthly by the
Tasmanian Chamber of Commerce and Industry. It is distributed
to businesses in Tasmania as well as key decision-makers.
Circulation: 12,000
BUSINESS
Managing Editor: Tom 2O’Meara
0418 135 822
Editor: Becher Townshend
0418 370 661
Advertising and Special Projects
Gil Sellars 0448 901 371
gil@thetrustedmediaco.com
HOBART’S Editorial BEST & Advertising RANGE OF
TBReditorial@fontpr.com.au
FOR THE www.tasmanianbusinessreporter.com.au
HOME AND OFFICE
Publisher:
We specialise Tasmanian in high Chamber quality ergonomic of Commerce chairs, and Industry
alternative seating
309 Liverpool
and electronic
St, Hobart,
sit/stand
TAS
desks.
7000
Flair Ph: Office 6236 Furniture 3600 has Fax: been 6231 providing 1278 quality, admin@tcci.com.au
affordable office
furniture to homes and offices throughout the Hobart region
for nearly 15 The years. Old We’re Post a locally-based, Office, 68-72 family-run Cameron business St,
specialising in all types of Launceston products, so why TAS not 7250 visit us today to
see our fantastic Ph: range? 6331 1144 laun@tcci.com.au
Production:
Phone 6234 1127
aldridge.media
260 Argyle Street,
Ph: 0431 241 775
North Hobart
aldridge.media@iinet.net.au
Printer: Mercury
www.flairofficefurniture.com.au
Level 1, 2 Salamanca Square, Hobart, 7000
BUSINESS
YOUR QUICK GUIDE TO SERVICES AND PRODUCTS FOR YOUR BUSINESS
QUALITY ERGONOMIC FURNITURE
To see your business here, call Kerri on 0419 750 267 or email kerri@thetrustedmediaco.com
Poll supports council mergers
From page 1
“Following the Mercury
poll, we are taking
a front foot approach to
introduce community forums
around the state and
listen to the discourse of
the community,” Mr Bailey
said.
“It’s not just the business
sector calling for
change but I hear all
the time from ratepayers
complaining about
costs and wasted projects
which don’t work and
money goes down the
drain.”
Mr Bailey said the
WANTED
Business
movers and
shakers
• Promotions
• Appointments
• Awards
• Celebrating
success
Share the news
with the
Tasmanian
business
community
Send your news
snippets, with a
high quality photo,
to TBReditorial@
fontpr.com.au
need for change was too
strong from all angles
not to continue pressing
the State Government regardless
of the promise
before last year’s election
that there would be
no forced mergers for the
term of this government.
“Sometimes governments
have to bite the
bullet and listen to the
huge community support
and change direction,”
he said.
“I find it hard to understand
that if 83 percent
of the state want mergers
then surely it couldn’t be
looked on as a broken
Your Partner
in Print.
www.footandplaysted.com.au
Now incorporating
THE CRAFT LIVES ON.
promise.
“After all, the days
have gone when every
town in Tasmania needed
a local council - what’s
needed is more transparency
in the sector.”
Mr Bailey said it was a
ridiculous system of over
government – with duplication
of services costing
the community and business
tens, if not hundreds
of millions of dollars.
Tasmania has 29 councils
and 263 councilors,
for a population of just
over 500,000 people,
ranging in size from
under 1000 people on
Flinders Island to more
than 67,000 people in
Launceston.
While councils in the
north, south and south
east have opened up with
nearby councils to reduce
costs and add size
and grunt to the new
council, merging is yet to
happen.
With the Tasmanian
economy at its strongest
in recent history, the
TCCI said it would continue
to push for the support
of Government and
Opposition to reform local
government as a major
priority.

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
Tasmanian Business Reporter - FEBRUARY 2019 3
Tourism flying high
TOURISM in Tasmania is
booming and the associated
financial spin off is pushing
the state’s business economy
into record breaking territory.
Tills are ringing right across
the state, with small businesses
on the verge of turning over
a billion dollars in a single
year for the first time.
Tourism Industry Council
of Tasmania figures
show that since September
2015, spending in Tasmania’s
2000 or so tourism
businesses has increased 23
per cent to nearly a billion
dollars in the 12 months to
September 2018.
Tourism Industry Council
of Tasmania Chairman
Daniel Leesong said accommodation
and transport
services accounted for the
majority of tourism spending
in Tasmania (about $1.5
billion of the nearly $2.5
billion expenditure.
But, hundreds of unique
producers, providores, tour
guides and venues, among
others, are also seeing the
benefits of a buoyant sector.
“It’s exciting to see that
the more retail-orientated
tourism businesses are in
the midst of a billion dollar
boom of their own,” he said.
“This shows the tourism
industry is absolutely fun-
Support grows for bold waterfront vision
A LOOMING Federal
Election could ensure
Hobart gets its chance for
a “once in a generation
Sydney Opera House”
moment.
Momentum is building
as industry leaders promote
the re-imagining of Castray
Esplande and the CSIRO
site.
The tourism industry last
year released its bold vision
to relocate the CSIRO to
Macquarie Point - with
pressure now ramping up
Above and Beyond’s seaplane flies over the Derwent River and Wrest Point.
damental to the economic
fabric of Tasmania.
“It’s bigger than the value
of salmon and forestry industry
exports combined.”
New ventures are literally
flying high.
Above and Beyond’s seaplane
hit the skies above
Hobart early in summer,
offering passengers scenic
flights over Hobart and to
hot spots like Three Capes,
Stewart’s Bay, Bruny Is,
Pumphouse Point at Lake
St Clair and Saffire at Freycinet.
Gerald and Henry Ellis
started Above and Beyond
to bring something unique
to the Derwent and the skies
of Tasmania.
More destinations are already
being added and there
for political support ahead
of the Federal Election, due
within months.
The development of
the area includes visions
of a maritime museum,
water-edge swimming pool
and improved spectator
infrastructure for the Sydney
to Hobart Yacht Race.
“We have an opportunity
to capture the energy and
vibrancy of the Taste of
Tasmania and the summer
festival period year-round
by activating the wateredge
of Castray Esplanade,”
TICT CEO Luke Martin
said.
“There is no better place
in Australia than the Hobart
waterfront over this one
week of the year, and it
makes zero sense why
these areas are left largely
dormant for the remaining
51 weeks of the year.”
Hobart alderman Simon
Behrakis is backing the
Castray Point push, tabling
a motion for the Hobart City
Council to back the plan.
are plans to add more aircraft
to the fleet.
“We have just been given
approval to operate into
Bathurst Harbour, Port Davey
and Lake Pedder, we are
waiting on similar approval
to come through for Lake St
Clair, Maria Island and Freycinet
Peninsula,” Henry said.
“We are hoping this will
come through within the next
three to four weeks,” he said.
TICT CEO Luke Martin
said there were many opportunities
for new businesses in
the state.
“It’s important that we continue
to look for innovative
ways to develop and diversify
our industry and share what
is really special about Tasmania,”
Mr Martin said.
Destination Southern Tasmania
CEO Alex Heroys said the
new service was just the latest
in a wave of new developments
coming on line that were aimed
at high-value, high-yielding
customers.
“There are other new examples
on the market that are
aimed at this type of customer
– the Tas Walking Company’s
Three Capes Lodge Walk and
the incredible Evolve Spirit
Bar at MACq01 hotel, to name
two,” he said.
“In the year ending September
2018, we welcomed 1.3 million
visitors who stayed more
nights and spent a record $2.4
billion in our communities, up
4 per cent from previous year.”
The industry is set to be even
further enhanced, with the eyes
of the nation’s tourism leaders
to be focused on the state
when Launceston’s Cataract
Gorge hosts 800 at the Qantas
Australian Tourism Awards on
March 1.
An artist’s impression of the Castray Point precinct.
NEWS
Bell
Bay
mill
planned
A $50 million hardwood rotary
peel and engineered timber
mill is being planned for Bell
Bay.
Patriarch Resources Pty
Ltd, a subsidiary company of
Patriarch and Sons Pty Ltd, is
seeking to establish the forestry
business on the site of the
former Southern Aluminium
Wheel Plant site in the industrial
zone.
Director Allen Wong said
work was under way to obtain
the appropriate development
and environmental statutory
approvals before a three-stage
building process.
“The construction of stage
one and two is worth more
than $28 million, covering site
purchase, adaption of the factory
and plant and equipment,”
Mr Wong said.
“More than $4 million in
local building and electrical
work will be required and will
be directed to local firms as
much as possible.
“It is estimated that the project
will create 30 to 40 jobs
during construction, while the
operation of the facility will
create up to 80 positions.
“A third stage – proposed
engineered timber – will involve
an additional investment
of more than $22 million and
will create further training and
employment opportunities.”
Mr Wong said Patriarch
planned to purchase wood
from existing public and private
sources, comprising certified
wood from plantations and
native forests that was currently
wood chipped.
“The proposed veneer mill
will provide opportunities for
wood currently planned to be
harvested to benefit from an
additional value-adding process,”
he said.
“We will engage with a
range of local experts, including
the University of Tasmania
to extend research into value-adding
of plantation timber.”
WANTED
Business
movers and
shakers
• Promotions
• Appointments
• Awards
• Celebrating
success
Share the news
with the
Tasmanian
business
community
Send your news
snippets, with a
high quality photo,
to TBReditorial@
fontpr.com.au

4 Tasmanian Business Reporter - FEBRUARY 2019
THOUGHT LEADERSHIP
Independents
the likely losers
Michael
Bailey
TCCI Chief Executive
BY the time members
read this column, the
New Year will be but a
distant memory – but I
hope still a happy one –
as 2019 charges on.
As we look ahead,
what sort of outlook is
there for Tasmanian business?
We know that Tasmania’s
economy is growing;
we know that business
confidence remains
high around the state.
The major bogey is the
Federal election come
May or thereabouts.
Tasmanian demonstrated
its intentions at
the last national poll,
when four Labor members
were elected and
one independent in Andrew
Wilkie in Denison.
Interestingly, the reality
is that on current and
previous polling we will
most likely have a new,
majority Labor Government
and a new prime
minister, Bill Shorten.
If that eventuates, the
current crossbench pow-
er of MHR’s such as Mr
Wilkie, Cathy McGowan
(Victoria), Bob Katter
(Queensland) and Rebekah
Sharkie (South
Australia) will be diminished
significantly.
A majority Government,
it enables whichever
side of politics to
ignore the independents
and their policy concerns
(at least in the Lower
House, the Senate being
another, different kettle
of fish).
As I have said previously,
the Morrison Coalition
Government will
obviously fight hard on
its economic record.
The Prime Minister
and Treasurer have already
prefaced the handback
of $9.23 billion in
tax cuts from an anticipated
surplus of $37.2
billion over the next
three years.
On paper, a less than
30 per cent return of the
surplus to Australian
households and business
sounds reasonable.
Australia goes to the polls around May.
We will all watch the
“Spendometer” tendencies
of both sides of
politics with great – and
grave interest.
On a technical financial
front, inflation here
and abroad has been
painfully weak for years.
Even the mid-year
forecasts note that it has
fallen this financial year
compared with last.
Next financial year,
however, it’s forecast
to rise to 2.25 per cent
before moving up to sit
right in the RBA sweet
spot of 2.5 per cent in
2020-21.
It’s a similar story for
wages.
Wages growth has
barely risen after an extended
period of record
lows, currently sitting
just about 2 per cent.
By 2020-21, however,
it is due to rise to 3.5 per
cent, well above the inflation
rate.
The TCCI is committed
to fight for Tasmanian
business interests
whoever wins the election.
In fact, four Tasmanian
Labor members in
a Shorten government
could be an excellent
outcome for the state,
particularly if Franklin’s
Julie Collins retains her
Opposition spokesperson
responsibilities in the
Cabinet.
www.tcci.com.au
Customers deserve
transparent banking
Paul
Ranson
CEO, Bank of Us
THE Australian Competition and Consumer
Commission has released its final
report on the Residential Mortgage Price
Inquiry late last year.
The ACCC found that bank customers
have been left worse off due to imbalanced
competition, unclear pricing and
lack of information.
As CEO of the only Tasmanian customer-owned
bank, we’ve been advocating
for a long time now, through our
industry body COBA, for more competition
and greater transparency in the
banking sector to give Australian consumers
a fair deal.
Yet the report is a reminder to customers
to look for alternatives to the four
major banks and to not be satisfied with
“better the devil you know”.
There are 74 mutual banks, credit
unions and building societies across
Australia with award-winning and market-leading
home loans.
At Bank of us, we always talk about
being customer-owned because it’s important
for people to understand the difference
between our model - that is solely
focused on the customer, because 100
per cent of our profits are used to benefit
our customers, and that of our publicly
listed cousins, whose goal is to generate
profit over people.
But what does it really take to change
banks?
It is hard when the banks price their
products in a way that impacts our willingness
to shop around.
Headline interest rates are a poor indicator
of the interest rate a borrower actually
pays, making it difficult to compare
like for like.
And it’s not just the financial costs, it’s
the time and effort it can take that inevitably
puts “switching” into the too-hard
basket
We know, because of the stories uncovered
during the recent banking royal
commission, that there are many consumers
who have been treated poorly by
the major banks.
So why do these banks still hold about
80 per cent of residential mortgages?
According to the ACCC report, many
existing residential mortgage borrowers
don’t regularly review their choice of
lender and so it goes that the big banks
are profiting from the inertia of their customers.
Fewer than four per cent of variable
rate residential mortgages with the major
banks refinanced to another lender in the
year to June 30, 2018.
People just stay put and this makes it
very hard for other banks, including customer-owned
banks, to secure any of that
80 per cent market share.
The report goes as far as to tell borrowers
how they can get a better deal.
Starting with simply asking their lender
for a better price on their existing residential
mortgage product or switching to
a cheaper mortgage with their existing
lender or, drum roll … switching lenders.
Tasmanian banking customers deserve
greater competition and transparency
in the banking sector.
It’s now up to the policy makers to
address these issues to give customer-owned
banks a level playing field or
else consumers will ultimately pay the
price
Associate Degree in
AGRIBUSINESS
Blundstone Scholarship
Available to students
commencing and continuing
study in the Associate Degree
in Agribusiness in 2019.
Tasmanian boot brand Blundstone and the Department of Primary
Industries, Parks, Water and Environment (DPIPWE) have generously
donated scholarships that will be offered to students enrolled in the
Associate Degree in Agribusiness in 2019.
The scholarships, worth up to $4,000 per year, will be available to
students commencing and continuing study in 2019.
These scholarships will support students with course costs, including
costs associated with attending a series of hands-on industry
workshops that form part of the course.
Apply now for Feb startutas.edu.au/blundstone-scholarship
CRICOS Provider Code (University of Tasmania): 00586B

Tasmanian Business Reporter - FEBRUARY 2019 5
THOUGHT LEADERSHIP
www.tcci.com.au
Gain to come from port pain
Brett
Charlton
Agility Logistics
AT THE time of writing,
the traders of Tasmania
are feeling some pain
with significant diminished
capacity over Bass
Strait during January.
Readers of the December
article will recall that
this was the main theme
– or in low brow terms
… “I told you so”.
Berthing issues in
Burnie caused most of
the pain - there was a necessity
to share with oil
and cruise vessels on the
alternative berth that Toll
is using while ramps are
being installed to accommodate
the new vessels
due to arrive in March.
The lack of capacity on
the Toll vessels flowed
through to Searoad and
TT Line with all excess
capacity being taken up.
ANL rerouted one of
its vessels to drop off
equipment and move
some international containers
caught up in the
deadlock.
It is fair to say that this
January will be remembered
as one of the most
difficult shipping periods
for Tasmanian traders in
recent memory.
The saving grace is
that traders should always
keep front of mind
that this is the “pain before
gain” as when the
berths are finished and
Toll bring on its new
vessels, coupled with
Searoad’s investment last
year, the capacity and efficiencies
across Bass
Strait should be set for
another 10 years and any
perceived restrictions to
growth due to capacity
across Bass Strait should
be a conversation of the
past.
On my radar (and
should be on yours) this
year are the following
emerging issues that are
Berthing issues in Burnie caused pain during January.
going to hit traders in
terms of cost and process.
• Mandatory export
air screening in March
– add cost and time for
non-regulated traders
(pretty much everyone).
• Low sulphur conversion
for international
vessels – we are already
seeing additional charges
being applied per container
for this in preparation
for 2020 (expect
more).
• Brown marmorated
stink bug (BMSB) – four
ships have been turned
back from Australian
waters due to infestation
not to mention significant
treatment costs
and delays in the supply
chain working to ensure
this disaster of a creature
does not get its claws
into Australian soil (expect
this to continue and
expand in 2019).
• Infrastructure surcharges,
biosecurity surcharges,
changes in international
container lines
rotations, possible international
flights to and
It is fair to say
that this January
will be
remembered as
one of the most
difficult
shipping periods
for Tasmanian
traders in recent
memory.
from Hobart, trade missions,
artificial intelligence
and Donald Trump
induced walls and trade
wars.
There is no lack of material
to keep us all engaged
in 2019 – best of
luck out there.
Savings in simplified health cover system
Paul
Lupo
CEO, StLukesHealth
THE first quarter of the
new year is always a
busy period for health
insurers as members review
their policy following
the annual April 1
premium adjustment.
While the annual premium
adjustments evoke
strong reactions from
media commentators, it
is important to look at
the drivers for such increases
if we are to ensure
the provision of
health services is both
affordable and accessible
across the public and
private sectors.
Health insurance premiums
increase because
the costs associated with
members’ claims continue
to rise.
An increase in people’s
life expectancy and
the prevalence of chronic
disease has resulted
in more frequent use of
hospital procedures that
come at a considerable
cost.
With health CPI sitting
at 3.2 per cent for the 12
months to September
2018, it is pleasing to see
the private health insurance
sector is able de-
liver its lowest premium
increase across Australia
in 18 years from April 1,
2019, at the average rate
of 3.25 per cent.
In October 2017, the
Australian Government
Private Health Insurance
Reforms were announced,
with some
notable changes from
April 1, 2019.
Gold, Silver, Bronze
and Basic product classifications
for hospital
cover will be implemented
from April 1.
The aim of this is to
make it easier for people
to understand, compare
and choose their
health insurance product
through the use of standardised
clinical definitions
that a product
must cover to receive
the classification.
All private health insurers
are required to
rename their existing
products under these
classifications.
If your hospital cover
is labelled as Gold,
you will be covered for
the most clinical categories,
while if it is labelled
Bronze you will
have mid-level cover
with exclusions on some
categories.
From
a
St.LukesHealth perspective,
the organisation
will only make minor
changes to its products
to ensure compliance
with the reforms.
If you receive advice
from your insurer that
your policy is being significantly
modified under
these changes, we
strongly suggest you
review your product to
ensure you still have the
appropriate level of hospital
cover and that it is
still providing you value
for money.
Also from April 1,
your private health insurer
will no longer
be able to pay benefits
towards some natural
therapies previously
covered under General
Treatment policy.
This was mandated by
the Health Minister after
the National Health
Gold, Silver, Bronze and Basic
product classifications for
hospital cover will be
implemented from April 1.
and Medical Research
Council found no clear
evidence demonstrating
the effectiveness of
these techniques.
Questions have arisen
about how this change
will apply to professionals
providing natural
therapies.
A good example of
this can be shown where
physiotherapists use Pilates
as part of a treatment
plan.
A private health insurer
can lawfully pay benefit
if a physiotherapist
is providing this service
to a patient within an accepted
scope of practice
– that is, a physiotherapist
uses exercises or
techniques drawn from
Pilates as part of a treatment
plan.
Remember if services
are withdrawn from
your health insurance
cover, your insurer is required
to notify you of
the change.
Private health insurers
are committed to finding
more ways to improve
the value proposition of
products while ensuring
that premiums remain
within the members’ financial
means.
Hopefully with these
reforms, we can announce
an average premium
increase lower
than this year next April.
ADVERTISEMENT
Elise
Archer
Your local Liberal
Member for Clark
62 Main Rd, Moonah
Please contact me:
p: 6212 2210
e: elise.archer@dpac.tas.gov.au
m: PO Box 426, Moonah, 7009
www.elisearcher.com
Authorised by Elise Archer, 62 Main Rd, Moonah, 7009

6 Tasmanian Business Reporter - FEBRUARY 2019
THOUGHT LEADERSHIP
Never downplay
workplace safety
Craig
Hortle
Workplace Health & Safety
SAFE Work Australia recently
released its reports
for the 2016-2017 year.
Some of the information
is interesting and
supports the active participation
in a system that
supports working safely
at work.
Just over nine people
out of every 1000 workers
sustains a serious
injury in workplaces in
Australia.
The average claim per
serious injury is $11,500.
In Tasmania the incident
rate of serious
claims and disease for
the 2016-2017 was 12.1
per 1000 employees.
The value of implementing
a safe system
of work in the workplace
cannot be undervalued
for the following reasons:
• compliance to WHS
legislation;
• safety of workforce;
• ability to negotiate
with workers compensation
insurer on premium;
• less time off due to
workplace injuries;
• reduced costs for replacement
workers for
those that suffer injuries
at work;
• a more engaged
workforce because of
structured system of
work; and
• better productivity
due to retained workforce.
The development of
a safe system of work
can be simple and inexpensive
as the majority
of workplaces do not require
the assistance of a
WHS consultant.
In Tasmania the incident rate of serious claims
and disease for the 2016-2017 was 12.1 per
1000 employees.
Free information services
on WHS requirements
are available from
the Tasmanian Chamber
of Commerce WHS specialists.
This is open to members
and non-members of
the chamber.
For more information contact Craig Hortle or
Janelle Whitehouse at the TCCI on 1300 559 122
or safety@TCCI.com.au
www.tcci.com.au
Launceston Cup
holiday confusion
Abbey
George
Workplace Relations
LAUNCESTON Cup Day always
causes much confusion each year as
to whether it is regarded as a public
holiday or not.
As Modern Awards do not
determine public holidays, an
entitlement to a public holiday
is determined by the National
Employment Standards and by the
industrial instrument in place at an
organisation such as an Enterprise
Agreement.
For those employers covered by a
Modern Award, to determine which
days are local holidays, such as
Launceston Cup Day, the National
Employment Standards refer to
those days which are “declared or
prescribed by or under a law of a
State or Territory to be observed
generally within the State or
Territory, or a region of the State
or Territory” (Section 115(b) Fair
Work Act 2009).
Although for the vast majority
of private sector employees,
Launceston Cup Day has not
been a legislated entitlement in
the past, much confusion existed
as Launceston Cup Day was
previously listed as a statutory
holiday; however, with amendments
to the Statutory Holidays Act 2000
in Tasmania in December 2010,
Launceston Cup Day was removed
and listed as a government holiday
only.
Therefore, for the majority
of employees in the private
sector, there is no entitlement to
Launceston Cup Day, except for
those employees that are covered
by an Enterprise Agreement
that provides for that specific
entitlement.
Having said this, some businesses
choose to allow employees to have
all or part of Launceston Cup Day
off in any event and obviously
this is a matter for each individual
business.
More information TCCI on 1300
559 122 or workplacerelations@
tcci.com.au
OUR MEMBERSHIP
OPENS DOORS
Join more than 43,000 experienced directors and senior leaders by
becoming a member of the Australian Institute of Company Directors.
Membership provides you with exclusive access to our Business Centre
and Member Lounges in Sydney, Melbourne, Canberra, Adelaide, Perth
and Hobart CBDs, member-only events and a range of governance tools
and resources.
Take the next step in your career
t: 1300 739 101 w: companydirectors.com.au/SWT
06460-26_18

Tasmanian Business Reporter - FEBRUARY 2019 7
THOUGHT LEADERSHIP
www.tcci.com.au
Courses tailored for the future
LeeWhiteley
University College
Chief Executive
THE saying “All Roads
Lead to Rome” may be
true, but not all roads
make for a smooth journey
and that’s something
the team at the University
College keeps in mind.
When we design and
implement our courses,
we not only ask industry
what it is that they are
looking for in a graduate,
we look at the different
ways in which our students
learn.
There are encouraging
examples of how the
right pathway into further
education can make
your journey a positive
and life-changing experience.
This year is an exciting
one with new associate
degrees being offered
across our three campuses
in Burnie, Launceston
and Hobart.
One of the new courses
on offer - Applied
Technologies - has taken
centrestage at this year’s
MONA FOMA in Launceston.
University College
staff have given two local
students a taste of
the new associate degree
through the creation of
two cyborg puppets.
Students Eleanor Ivery,
17, a St Patrick’s
College Year 12 student
and Sebastian Knevett,
21, a third year University
of Tasmania ICT student,
have spent the last
few weeks bringing the
large puppets to life by
rigging them with sensing
technology to control
their limb movement via
automation.
With sensors everywhere
and influencing
our everyday lives, the
Applied Technologies
course is catering to a
major growth area.
The puppets are currently
mounted on the
wall at the Academy Gal-
Students Eleanor Ivery and Sebastian Knevett brought puppets to life with sensing technology.
lery at Inveresk and can
be controlled through
wireless sensors by
members of the public
willing to give the technology
a try.
Having the tools to
confidently step into university
study is no easy
feat, but thanks to the
University Preparation
Program, 41 students
took the plunge last year.
Completion ceremonies
were held in Burnie,
Launceston and Hobart
last month, to honour
the students, which saw
many fast-track into undergraduate
degrees.
The University Preparation
Program is flexible
and designed to provide
adult learners with
academic learning skills
and the confidence and
personal skills needed
to succeed at university.
Congratulations to
one of our Agribusiness
graduates Mady Muirhead,
who has been accepted
into the Ruralco
Graduate Program for
2019.
Mady recently completed
the Associate
Degree in Agribusiness
with the University
College and completed
her Diploma of Equine
Business Management
at Marcus Oldham College.
Her strong passion
for horses and interest
in livestock and animal
systems meant the Agribusiness
course was a
perfect fit for Mady.
Hands-on industry
experience within the
course means students
will not only have a
firm understanding of
agribusiness theory but
know how to apply it in
working environments.
For more information
check out our website
at www.utas.edu.
au/college
Seek advice to navigate trade deals
AUSTRALIA has now
entered into 11 bilateral
or multi-lateral Free
Trade Agreements covering
18 countries including
New Zealand, Singapore,
the US, Thailand, Chile,
Korea, Japan, China, Brunei,
Myanmar, Malaysia,
the Philippines, Vietnam,
Laos, Cambodia, Indonesia,
Canada and Mexico.
Additionally, agreements
with Peru, Hong
Kong and nations in the
Pacific are concluded but
not as yet in force.
Negotiations are under
Sally
Chandler
Tradestart Adviser
way with the EU, the Gulf
Co-operation Council and
India and are proposed for
the UK once that country’s
Brexit negotiations
are complete and passed
by the British Parliament.
It is very important to
Under the China-Australia FTA,
which came into force on
December 20, 2015, most tariffs
were reduced to zero
note that FTAs don’t just
allow for reduced tariffs
and increased quotas or
better still the elimination
of tariffs and quotas,
but also cover investment,
greater access for services,
intellectual property,
e-commerce and government
procurement.
While Australia has
been very proactive in establishing
FTAs so have
other countries – with
each other.
Under the China-Australia
FTA, which came
into force on December
20, 2015, most tariffs
were reduced to zero on
January 1 this year in the
latest round of tariff cuts.
These included wine,
seafood and horticulture
products which will positively
impact Tasmanian
exports.
With some countries
being covered by more
than one FTA, exporters
are encouraged to use the
Department of Foreign
Affairs and Trade’s FTA
portal - https://ftaportal.
dfat.gov.au/ - to ascertain
which Agreement gives
their buyer the best customs
treatment on market
entry at the border.
And as always, I am
readily available to assist.
For international
trade and investment
assistance contact
the TCCI’s TradeStart
Adviser, Sally Chandler,
at sally.chandler@tcci.
com.au or phone 1300
559 122.
Disability enterprises deserve support
FOR hundreds of Tasmanians
living with
a disability, there is
nothing more important
than the dignity of
work and the sense of
purpose and stability
that comes with having
a job.
Australian Disability
Enterprises are notfor-profit
organisations
that provide supported
employment to people
living with a disability.
Labor went to the
March election with
a policy to set a target
to purchase goods
JoshWillie
Shadow Minister
for Disability
and services from local
ADEs.
Spending at least two
per cent of the supplies
and consumables
budget would provide
business opportunities
and the chance to offer
more training.
ADEs not only offer
jobs but the chance for inclusion
and the opportunity
to contribute.
Organisations like
Oak-Possability started
Oakdale Workshop in Tasmania
in 1964 and others
followed.
The focus was not only
to see kids in work but to
battle and change community
attitudes.
One of the many success
stories is Dylan who,
through his work experience
at Oakdale Industries,
has started his own
business.
Dylan’s Mowing Service
operates across Hobart.
Dylan says Oakdale
has supported him into his
dream job — being his
own boss and working
outdoors.
Tasmanians like Dylan
should remind us of the
United Nations principle
that people living with a
disability have the right
to economic security and
useful work.
Tasmania has a 55-year
history of achieving just
that.
But our Government
should not overlook that
proud history and should
not exclude these important
organisations.
There are 11 ADEs
owned and operated by
Tasmanian not-for-profits
and they employ about
500 Tasmanians.
ADEs enable workers
with a disability to do jobs
including packaging, assembly,
production, recycling,
screen printing, gardening
as well as cleaning
and food services.
They offer conditions
similar to other employers
and are valued by the employees.
ADEs are funded by
the Commonwealth Government’s
Social Services
Department but state governments
have a role to
play.
Last year, National Disability
Services signed
an agreement with the
Hodgman Government to
streamline the process for
government departments
to procure the services of
ADEs.
Despite the agreement,
there are no formal policies
to mandate government
to use ADEs.
It was revealed, the
Tasmanian Government
agencies are not required
to identify contracts
awarded to ADEs.
I think most Tasmanians
would agree that the Government
should be procuring
ADE services, as well
as keeping meaningful
data.

8 Tasmanian Business Reporter - FEBRUARY 2019
THOUGHT LEADERSHIP
Jobs numbers building
Sarah
Courtney
Building and Construction
Minister
TASMANIA’S building
and construction sector
is going from strength to
strength.
The extraordinary momentum
in the industry is
also helping to underpin
broader economic confidence
statewide.
It is shaping up to be
another great year for
the industry in 2019, but
these results have not
happened by accident.
The Hodgman Liberal
Government has been
working hard to ensure
we have the right conditions
in place to stimulate
more construction, create
jobs and boost the economy.
These strong results
have been achieved in
partnership with the entire
industry, which has
shown hard work and
dedication in responding
to this optimism with
investments growing
strongly across the commercial,
residential and
industrial sectors.
Building and construction
jobs are at industry
highs with more
than 23,000 Tasmanians
currently working in the
sector.
We are cutting red tape
and continually working
with industry to further
streamline processes to
make it easier, faster and
cheaper to build in Tasmania.
The increase in the
total value of building
approvals achieved the
highest growth rate in
Australia in the year to
November 2018, up 39
per cent, with the number
of dwelling approvals increasing
by 14 per cent
over the same period.
The value of total
completed construction
Construction workers are being kept busy.
work increased by 11.3
per cent to $2.9 billion in
the year to the September
2018 quarter, nearly seven
times higher than the
national growth rate.
Importantly, this record
growth is set to continue,
with a 59 per cent
increase in the value of
Picture: Honed Architecture
engineering construction
work commenced in the
year to September 2019,
and a near-doubling in
the estimated value of
work yet to be done to a
year ago.
I am proud of these
achievements and motivated
to continue supporting
growth by ensuring
we have a skilled
workforce which can
meet the growing demand
in Tasmania.
The success of this industry
benefits all Tasmanians
with more homes,
better infrastructure and
importantly, more jobs.
www.tcci.com.au
Care for the
vulnerable
INQUIRIES into the
abuse of vulnerable people
raise the paramount
question of just who is
accountable when the
worst happens.
Professor Pamela Hanrahan,
Deputy head,
School of Taxation and
Business Law, UNSW
Business School, says the
worst nightmare for any
director of a non-government
organisation working
with vulnerable people
is that someone under
their organisation’s care is
abused by one of its employees.
The recently announced
Royal Commission into
Aged Care Quality and
Safety, which launched
hearings in mid-January,
will likely bring community
focus back to the accountability
of thousands
of NGOs now contracted
or funded by governments
to provide human services,
including aged care,
disability support services,
child care and family and
community services.
NGOs and the individuals
who serve on
their governing boards
and committees accept a
heavy burden when contracting
with government
to provide human services
to vulnerable people.
Given the difficult legal
position, the basis on
which NGOs should be
legally accountable when
employees commit offences
against the people
they are charged to protect
will likely be an important
part of deliberations by the
aged care Royal Commission.
That’s why it is crucial
for all organisations
involved in the care of
the vulnerable to be fully
aware of their governance
obligations and their duty
of care.
Registrations are now
open for a new course offered
by the Australian Institute
of Company Directors
(AICD): “Governing
to protect vulnerable people”
to be held on Thursday,
March 14, 2019 at the
Tasmanian Divisional Office
in Hobart.
Applicants can register
via www.companydirectors.com.au/SWT
OUR PERSONAL LOANS
come with low rates from
5 .99% 6
P.A.
VARIABLE RATE
.27% P.A. #
COMPARISON RATE
bankofus.com.au | 1300 306 716
*The small, small print:
Bank of us lending criteria, terms and conditions including fees and charges apply. Full details are available on application.
^Rate available for new personal loans secured by boat, motor vehicle, caravan or motorcycle up to 2 years old and
subject to change. #The comparison rates are calculated on the basis of a secured loan of $30,000 over a term of 5
years. WARNING: These comparison rates apply only to the examples given. Different amounts and terms will result
in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers,
are not included in the comparison rate, but may influence the cost of the loan.
Bank of us is a trading name of B&E Ltd ABN 32 087 652 088 AFSL & Australian Credit Licence 236870
Tasmania I Community I Customer

Tasmanian Business Reporter - FEBRUARY 2019 9
Incat ferries in demand
Super shakeup
NEWS
Tasplan hails
focus on fees
HSC Saint John Paul II in sea trials before departing for her new home in Malta.
SEA trials are under way for
Incat’s latest vessel as the
ship builder confirms it has
another international order
to complete.
As we go to print, the 110
metre HSC Saint John Paul
II is set to depart for her
new home with Virtu Ferries
in Malta servicing the route
between Malta and Sicily.
The wave piercing
catamaran will be the largest
high-speed catamaran in
the Mediterranean, with
a service speed up to 38
knots.
“Work commenced on
HSC Saint John Paul II in
2017, and together with
other export orders has been
a catalyst for the significant
increase in workforce
numbers at Incat over
the past two years,” Incat
Chairman Robert Clifford
said.
Incat has also confirmed
work is under way on a new
vessel for the Government
of Trinidad and Tobago.
The new fast passenger
and cargo ferry will have
capacity for 1000 people,
including 224 VIP seats,
and will carry 239 cars or a
combination of trucks and
cars.
The Trinidad & Tobago
inter-island seabridge has
previously been served by
two Incat vessels, the T&T
Express and T&T Spirit.
The new vessel will be
delivered in 2020.
TASPLAN Super has welcomed
the Productivity
Commission investigation
into efficiency and competitiveness.
CEO Wayne Davy said
while the organisation was
yet to digest the full detail
of the 700-page report, any
initiatives which encouraged
better returns for members,
improve fund performance
and reduce fees were to be
welcomed.
“Super is our nest egg for
our future retirement, with
the aim of ensuring people
can live comfortably when
their working life comes to
an end, so any initiatives that
can increase the amount of
super is to be welcomed,” Mr
Davy said.
“Removing unintentional
multiple super accounts
could save thousands of dollars
for members, while for
young people entering the
workforce today, the Productivity
Commission predicts
over $500,000 in extra savings
by the time they retire.
Mr Davy said as a profit-for-members
super fund,
Tasplan has always been
transparent with its fees and
charges, but as the banking
royal commission has shown,
for-profit funds have not been
as open and transparent with
their charges, so any moves
in this area would see better
outcomes for consumers.
“If Tasmanians have
learned anything out of the
royal commission, it’s that
there are super funds run
by banks to make a profit
and there are industry super
funds, such as Tasplan which
are run solely for the benefit
of their members,” Mr Davy
said.
“The Royal Commission
has made it clear that industry-based
funds, such as
Tasplan have a much better
track record when it comes
to fees and charges.”
Mr Davy said any initiative
that encouraged better
financial returns to members
was also to be welcomed, but
cautioned against any radical
approach to changing the
way funds operate.
“Any system that can promote
better performance
should be encouraged, but
sometimes funds can take a
number of years to generate
strong returns and so financial
returns must be looked at
over the longer term such as
five to 10 years, rather than a
simplistic year on year comparison.
“Super savings are about
taking a long-term compounding
approach to savings
and so when comparing
fund investment return, a
long-term view must also be
taken.
Supporting
those making
a better
community.
Just one reason why our
members voted us number one
for customer satisfaction
in Australia, two years in a row! *
Mitch McPherson
Founder, SPEAK UP! Stay ChatTY
We’re your number one health insurer. Talk to us today!
1300 651 988 stlukes.com.au
for Customer Satisfaction*
two years in a row!
* #1 Roy Morgan Customer Satisfaction Awards: Private Health Insurer of the Year – 2016 & 2017. St.LukesHealth ABN 81 009 479 618 180376

10 Tasmanian Business Reporter - FEBRUARY 2019
APPOINTMENTS and ANNOUNCEMENTS
APPOINTMENTS
Communications
coup for Font
TWO of Tasmania’s top political
strategists and communications
professionals, Brad Stansfield and
Brad Nowland, have joined Font
PR as partners.
Font PR Managing Director,
Becher Townshend said the “two
Brads” would significantly expand
the firm’s presence in Tasmania
and interstate, taking the
business to the next level.
“Both Mr Stansfield and Mr
Nowland bring high level communications
skills, political acumen
and government experience
to Font PR as well as having a
deep understanding of issues
management in the local and national
context,” Mr Townshend
said.
“Brad Stansfield is a highly
respected political professional
who was Chief of Staff to Premier
Will Hodgman for eight
years and masterminded the 2014
and 2018 state election victories.
“Brad Nowland was the Liberals’
press secretary for a decade
and worked closely with Brad
Stansfield during this period,
building a reputation for delivering
exceptional results in the
strategic communications and
campaigning fields.
Developer to fight for lake camp
A DEVELOPMENT Application
has been lodged with the
Central Highlands Council for a
new tourism development at Lake
Malbena.
The eco-tourism Standing
Camp has been approved by
State and Federal Governments
as a development through the
EOI process for National Parks
and now requires planning and
building approval from the
council.
There are expected to be
public objections against the
three accommodation pods and
one communal area proposed to
be built by Daniel and Simone
Hackett for high-end fly fishing
enthusiasts to be flown in via
WP - Advert Feb17 - Proof 4.pdf 1 24/02/2017 9:08:21 AM
Communicators Brad Nowland, left, Becher Townshend and
Brad Stansfield.
New chair for
accountants
THE new year is shaping up to
be a busy one for Chartered Accountants
Australia and New Zealand’s
(CA ANZ) Tasmanian Regional
Council, with Ruddicks’
partner Lyndal Kimpton stepping
into the role of chair.
The organisation is preparing to
take a more active role in advocating
for better Tasmanian economic
outcomes.
Outgoing chair, BDO partner
helicopter. Mr and Mrs Hackett
are fighting against opposition
from some anglers and the
Greens.
They said the development had
been rigorously investigated and
meticulously planned.
The design requires less than
a week to fully install, or fully
remove, with only a few tent-peg
like anchors used to secure the
pods on-site, they said.
“The infrastructure footprint
is respectfully minimal:
approximately 65sqm, and the
camp would be completely
hidden when viewed from offisland,
or from our existing
historical hut on the island,” Mr
Hackett said.
Paul Breen, will remain on the
council after two years at the head
of the table.
Ms Kimpton said she was looking
forward to utilising the unique
knowledge base of CA ANZ’s
network of 1000 practicing Tasmanian
chartered accountants to
push for better outcomes for the
state.
“We have a wide range of members
across business, industry
and government with extensive
knowledge of how Tasmania ticks
financially,” Ms Kimpton said.
“By harnessing this knowledge
“This is the nature-based
tourism model that Tasmanians
have been working towards for
the past decade: small, sensitive
and locally-owned, and operating
CA ANZ Tasmanian Regional
Council chair Lyndal Kimpton.
and informing decision makers
as well as the public, we hope
to help the Tasmanian economy
continue to build.”
Ms Kimpton has been with
Ruddicks since 2003 and specialising
in services, audit and superannuation.
She holds a certificate of registration
as an auditor by ASIC
and is CA ANZ’s representative
on the ASIC Regional Liaison
Committee in Tasmania and is an
independent representative on the
Launceston City Council’s audit
committee.
An artist’s
impression of
the proposed
Lake Malbena
development.
within rural communities that are
embracing the visitor economy in
the post-forestry era.”
Public submissions through the
council close in early February.
IN BRIEF
Voice returns
to the valley
THE Derwent Valley Gazette has been
returned to local Tasmanian ownership.
The paper had been owned by media
group Davies Brothers Pty Ltd but has been
purchased by Font PR.
Font PR Managing Director Becher
Townshend said the masthead would be the
best local news source for the Derwent Valley
and would fight to ensure the region’s voice
was heard.
“With news becoming increasingly
globalised through social media and the
concentration of media ownership, we
believe it is more important than ever for
local communities to continue to have their
own voice through publications such as The
Gazette,” Mr Townshend said.
The last
issue
of the
Derwent
Valley
Gazette.
The
popular
local
paper
returns on
February
13.
Tassie suburbs
lead sale speed
TASMANIA has topped the list for
Australia’s fastest selling suburbs.
Eight Hobart suburbs made the top 10 with
only two suburbs outside the state – one in
Western Australia and the other in NSW.
The analysis was done by RiskWise
Property Research and based on CoreLogic’s
data regarding the average number of days on
the market in the past 12 months.
Lutana and Mornington both achieved an
average of six days to sell for houses.
The Australian average number of days on
the market sits at 43.
The eight Tasmanian fastest selling
suburbs were Lutana, Mornington, Mount
Nelson, Geilston Bay, Bellerive, Leah Valley,
Claremont ad Lauderdale.
Stenton Park in WA and Castle Cove in
NSW, also made the list.
SOLUTIONS
IN PRINT
your print specialist for over 90 years
Full Off-Set,
Digital and
Wide Format
Capabilities
Binding and
Finishing
Variable Data
and Mailing
Warehousing
and Distribution
Online Ordering
and Inventory
Management
www.tasmanianbusinessreporter.com.au
Talk directly to Business
Leaders, Managers
and Owners
....the decision makers.
Tell your unique story to
the decision makers.
No other medium can talk directly to business like the BUSINESS Reporter can.
30,000 PRINT
READERS
+
5,000 ONLINE
SUBSCRIBERS
Imagine 30,000 business news readers statewide, plus over 5,000 Online
subscribers who get the latest business news that matters to them.
6391 8481
www.woolstonprinting.com.au
sales@paperstat.com.au
EXPLORE THE POSSIBILITIES.
Ask about the editorial/advertising package that
delivers a direct hit to your market.
See how the Tasmanian BUSINESS reporter
can build your brand awareness.
• Call Gil Sellars on 0448 901 371
• gil@thetrustedmediaco.com

Tasmanian Business Reporter - FEBRUARY 2019 11
EVENTS
LEFT:
Attorney-
General Elise
Archer, left,
Dominic Baker
of Wrest Point
& Country Club
Tasmania and
Kim Upton of
Wrest Point.
What:
Wrest Point’s
Merry Mingle
ABOVE: Steve Barker of Spoken Media, left, and Chris
McGregor of First National McGregor.
RIGHT: Stacey Joseph, left, and Colleen Reardon from
the TCCI.
Where:
Wrest Point,
Hobart
When:
Tuesday,
December 18,
2018
ABOVE: Polly Venning, left of Tasmanian IT and
Selina Spowart of Wrest Point.
ABOVE: Robyn Doyle of Doyle Soil Consulting, left, Claire Vervaart of
Green Wave Projects and David Male of Murchison Software.

12 Tasmanian Business Reporter - FEBRUARY 2019
PROPERTY MATTERS
Questions over tourism ‘brand’
Scott Newton
Property Matters with
Knight Frank
John Blacklow, Knight Frank Tasmania’s
highly experienced specialist consultant
for the tourism and leisure sector, shares
his views on the Hobart tourism market.
TASMANIA’S tourism boom
continues to break records
with 1.3 million visitors in
2018.
While the number of tourists
has increased two per
cent on the previous year,
the growth rate has slowed,
which was to be expected.
These statistics do not include
cruise ships which saw
a record 127 ships visiting
our shores – up 36 per cent.
Hobart receives about 73
per cent of the visitors to
Tasmania, resulting in high
occupancy rates as our city
struggles to accommodate
the tourists, particularly from
December through to April.
A report commissioned by
the Government in 2017 indicated,
that based on growth
targets, Hobart city would
require an additional 1478
rooms by 2020.
Since then Macq01 Hotel
(113 rooms) and Ibis Styles
Hotel (296 rooms) have
opened, adding 409 rooms to
the inventory.
However, this has been
offset by the loss of the Mid
City Hotel (105 rooms) and
the Fountainside Hotel (50
rooms) which were purchased
by the University of
Tasmania in 2018.
For 2019, construction
will commence, or continue,
with the following hotels:
• Crowne Plaza ​Liverpool
Street - ​187 rooms;
• Vibe Hotel ​Argyle
Street​ - 115 rooms;
• Marriott Hotel ​Davey
Street - ​128 rooms; and
Never before has Hobart experienced such strong growth in a relatively short time.
• Un-named Hotel​​Elizabeth
Street - ​72 rooms.
So, by early 2020 Hobart
will increase its room inventory
by 756.
This is still 722 rooms
short of the growth target.
Developers are seeking
Development Approval
from Hobart City Council
for a number of sites that
are proposed for hotels.
These include:
• Fragrance Group – Macquarie
Street ​DA approved
for 202 rooms;
• Fragrance Group – four
sites​ DA submitted and
contested for 1066 rooms in
total;
• Lenna Courtyard Hotel,
Battery Point -​DA sought
for 85 rooms;
• Salamanca Visitor Accommodation​-
DA sought
for 50 rooms; and
• Tribe Hotel​ - DA sought
for 104 rooms.
These proposed developments
would add a total 1507
rooms, so potentially Hobart
could go from an undersupply
position to an over supply
if all these hotels are approved
as is and built, which
is unlikely.
Other potential projects
in the Greater Hobart area
include MOTOWN (172
rooms), Kangaroo Bay (120
rooms), Regatta Grounds
(270 rooms) and Rosny Hill
(82 rooms).
Never before has Hobart
experienced such strong
growth in a relatively short
time span.
Although expansion was
inevitable, the question now
arises as to whether our present
infrastructure can cope, or
do we want “mass” tourism?
Will our brand be affected?
With large scale projects on
the drawing board such as the
Kunanyi/Mount Wellington
cable car, MONA expansion,
international flights, and the
Macquarie Point Development,
it is likely visitor numbers
will continue to increase
in the medium term.
No doubt there will be
much public debate as to the
benefits or negatives associated
with Hobart’s fastest
growing sector.
PROPERTY VIEW
FEBRUARY 2019
“PALFREYMANS ARCADE”
340-344 Elizabeth Street, North Hobart
BLUE CHIP BUNNINGS WAREHOUSE
20 Howard Road, Glenorchy
Outline indicative only
SOLD
Outline indicative only
• North Hobart’s highest profile asset
• Prized corner position within the “Lygon Street”
of Hobart with three extensive street frontages
• Highly flexible property, providing a mixture of
retail and commercial tenancies over two levels
• Strata titled with 3 units with a total strata area of
611 sqm (approx)
• Current Gross Income of $180,491 per annum
plus GST (approx)
• Landmark North Hobart Commercial Asset
• Zoned: General Business providing good level of
flexibility
Matthew Wright 0458 290 588
Richard Steedman 0408 559 046
FOUNTAINSIDE HOTEL
40 Brooker Avenue, Hobart
• The Fountainside Hotel, offers four star luxury
Hobart Accommodation in hotel ensuite
rooms or self contained studio apartments.
• The Fountainside Hotel has 50 rooms in
total and is within easy strolling distance of
the many restaurants in Hobart’s fabulous
waterfront
•
• Hobart airport is a simple 20 minute drive
away from Fountainside Hobart
SOLD
John Blacklow 0418 128 735
Scott Newton 0409 186 261
SOLD
• Extraordinary 15.5% average annual sales
growth since 1995.
• Irreplaceable 38,310 sqm highway corner site.
• Annual fixed 3% rent increases through to
2040. Net rent: $439,555 pa
• Extremely rare 25 year triple net lease to 2040
plus 25 year option.
• Strategic 38,310 sqm freehold site with over
380 at-grade car spaces.
• As new 16,900 sqm facility constructed in
2015 at Bunnings’ cost, future proof with
provision for 2,000 sqm on-site expansion.
AT AUCTION
Matthew Wright 0458 290 588
THE GRANGE
4 Commonwealth Lane. Campbell Town
• The Grange Meeting and Function Centre
(2007) is central Tasmania’s premier meeting
venue ideally located in the large township of
Campbell Town.
• The facility provides 6 flexible conference
rooms for up to 150 delegates
• It offers a full range of catering from its large
commercial kitchen to both indoor and
outdoor courtyards with cafe, BBQ and
dining options.
• The property contains 3 titles with a land area
of 2.7881 hectares (approx).
SOLD
John Blacklow 0418 128 735
5 Victoria Street, Hobart 54 Cameron Street, Launceston Shop 8, 48-54 Oldaker Street, Devonport
P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568