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Tasmanian Business Reporter February 2019

Welcome to the February edition of the Tasmanian Business Reporter. In the first edition for the year we take a look at some of the driving forces behind Tasmania’s current economic confidence, with a host of major tourism, manufacturing and construction projects signalling another bright year ahead. You will also find renewed calls from business leaders to reduce the number of Tasmanian councils, details of the game-changing vision for Castray Esplanade and the CSIRO site, as well as all the latest in business news from around the state.

Welcome to the February edition of the Tasmanian Business Reporter.

In the first edition for the year we take a look at some of the driving forces behind Tasmania’s current economic confidence, with a host of major tourism, manufacturing and construction projects signalling another bright year ahead.

You will also find renewed calls from business leaders to reduce the number of Tasmanian councils, details of the game-changing vision for Castray Esplanade and the CSIRO site, as well as all the latest in business news from around the state.

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FEBRUARY <strong>2019</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 12,000 M O N T H LY<br />

Full speed ahead<br />

It’s all go for Tassie<br />

• Tourism flying high, p3 • Job numbers build, p8 • Export orders for Incat, p9<br />

Poll backs<br />

council<br />

mergers<br />

Strong Australia<br />

Network <strong>Business</strong><br />

Luncheon<br />

14 <strong>February</strong> <strong>2019</strong><br />

Hotel Grand<br />

Chancellor<br />

Hobart<br />

RSVP: 7 <strong>February</strong> <strong>2019</strong><br />

By TOM O’MEARA<br />

BUSINESS leaders are increasing<br />

pressure to dramatically reduce<br />

council numbers in Tasmania following<br />

a damning poll.<br />

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

Commerce and Industry has long<br />

advocated the need to cull the<br />

number of councils, last year revealing<br />

a bold plan to downsize<br />

councils from 29 to three.<br />

The suggestion attracted strong<br />

support from business and domestic<br />

ratepayers with opposition<br />

from government and Local Government.<br />

But, politicians may now be<br />

swayed by public opinion with<br />

more than three quarters of <strong>Tasmanian</strong>s<br />

(76 per cent) believing<br />

there are too many councils in the<br />

state, according to a poll by the<br />

Mercury newspaper.<br />

The poll also showed that 83<br />

per cent of <strong>Tasmanian</strong>s supported<br />

merging with 29 local government<br />

areas deemed unacceptable.<br />

And voter support for cutting<br />

councils and merging has increased<br />

since previous polls which<br />

encouraged the Government to introduce<br />

a voluntary amalgamation<br />

process – a move that has since<br />

failed.<br />

Some councils have agreed to<br />

merger discussions but have been<br />

stymied by neighbouring councils<br />

who don’t want to change.<br />

TCCI CEO Michael Bailey said<br />

it was time to rattle the cage.<br />

Continued page 2<br />

JENNIFER<br />

WESTACOTT<br />

BOOK NOW<br />

ALAN<br />

JOYCE<br />

www.tcci.com.au/Events/Strong-Australia<br />

or phone 1300 559 122<br />

FRANCES<br />

BENDER<br />

EVENT PARTNERS<br />

MICHAEL<br />

BAILEY<br />

MIKE<br />

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<br />

2 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong><br />

NEWS<br />

Fires delay windfarm works<br />

BUSHFIRE in the state’s<br />

Central Highlands have halted<br />

construction of Goldwind<br />

Australia’s $300 million Cattle<br />

Hill Windfarm.<br />

Forty eight wind turbines<br />

will be built near the Waddamana<br />

power station as part of<br />

the wind farm project which<br />

will return to construction<br />

phase once the severe fire<br />

threat eases, expected as we<br />

go to print.<br />

With the project planned<br />

to be fully operational by<br />

late this year, 120 staff have<br />

been on site since last year to<br />

prepare for the arrival of key<br />

equipment.<br />

TasPorts has welcomed the<br />

first of the 68.75-metre-long<br />

blades to Bell Bay ready for<br />

transport to the site.<br />

TasPorts Acting CEO Anthony<br />

Donald said it was a<br />

major infrastructure initiative<br />

to coordinate.<br />

“This has been a complex<br />

project coordinating logistics<br />

between all involved parties,”<br />

he said.<br />

“We are expecting all turbine<br />

components to arrive<br />

across six shipments over the<br />

coming months.<br />

“The components will be<br />

The first of the 68.75-metre-long blades at Bell Bay ready for transport.<br />

stored inside the port at Bell<br />

Bay before making their way<br />

to the project site via road<br />

transport.”<br />

The Cattle Hill Wind Farm<br />

will have the capacity to power<br />

63,500 <strong>Tasmanian</strong> homes.<br />

Goldwind Australia Managing<br />

Director John Titchen<br />

said the Cattle Hill Wind<br />

Farm project continued to<br />

have significant local benefits.<br />

“Goldwind appointed Hobart-based<br />

Hazell Brothers<br />

to undertake the full civil and<br />

electrical works for the project<br />

and Launceston-based<br />

company Gradco to undertake<br />

road upgrades to allow<br />

for the delivery of wind tur-<br />

This will<br />

be a huge<br />

economic<br />

boost for the<br />

West Coast<br />

and<br />

North West<br />

bine components and associated<br />

equipment,” he said.<br />

Up to 150 staff are expected<br />

on site during the peak of construction.<br />

Construction is also progressing<br />

on the $280 million<br />

Granville Harbour wind farm.<br />

Nearly 100 sections of wind<br />

turbine towers, each weighing<br />

almost 150 tonnes, have been<br />

transported from Burnie Port<br />

to a holding facility behind<br />

Bunnings Warehouse before<br />

they move on to their final<br />

destination.<br />

The 52-metre long, 6.1-metre<br />

high components were escorted<br />

by State Growth Transport<br />

Safety Officers in one of<br />

the largest road-based movements<br />

ever seen in Tasmania.<br />

“With Granville Harbour<br />

and Cattle Hill under construction,<br />

and Robbins Island<br />

and Jim’s Plain in the<br />

pipeline, more than 350 construction<br />

jobs have already<br />

been injected into regional<br />

communities with more than<br />

400 construction jobs and 95<br />

ongoing roles on the table,”<br />

Energy Minister Guy Barnett<br />

said.<br />

“This will be a huge economic<br />

boost for the West<br />

Coast and North West.”<br />

The Government’s Tasmania<br />

First energy policy aims<br />

to make our state fully renewable-energy<br />

self-sufficient<br />

and to have the lowest regulated<br />

power prices by 2022.<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 />

e dition<br />

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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 />

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Poll supports council mergers<br />

From page 1<br />

“Following the Mercury<br />

poll, we are taking<br />

a front foot approach to<br />

introduce community forums<br />

around the state and<br />

listen to the discourse of<br />

the community,” Mr Bailey<br />

said.<br />

“It’s not just the business<br />

sector calling for<br />

change but I hear all<br />

the time from ratepayers<br />

complaining about<br />

costs and wasted projects<br />

which don’t work and<br />

money goes down the<br />

drain.”<br />

Mr Bailey said the<br />

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need for change was too<br />

strong from all angles<br />

not to continue pressing<br />

the State Government regardless<br />

of the promise<br />

before last year’s election<br />

that there would be<br />

no forced mergers for the<br />

term of this government.<br />

“Sometimes governments<br />

have to bite the<br />

bullet and listen to the<br />

huge community support<br />

and change direction,”<br />

he said.<br />

“I find it hard to understand<br />

that if 83 percent<br />

of the state want mergers<br />

then surely it couldn’t be<br />

looked on as a broken<br />

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“After all, the days<br />

have gone when every<br />

town in Tasmania needed<br />

a local council - what’s<br />

needed is more transparency<br />

in the sector.”<br />

Mr Bailey said it was a<br />

ridiculous system of over<br />

government – with duplication<br />

of services costing<br />

the community and business<br />

tens, if not hundreds<br />

of millions of dollars.<br />

Tasmania has 29 councils<br />

and 263 councilors,<br />

for a population of just<br />

over 500,000 people,<br />

ranging in size from<br />

under 1000 people on<br />

Flinders Island to more<br />

than 67,000 people in<br />

Launceston.<br />

While councils in the<br />

north, south and south<br />

east have opened up with<br />

nearby councils to reduce<br />

costs and add size<br />

and grunt to the new<br />

council, merging is yet to<br />

happen.<br />

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

economy at its strongest<br />

in recent history, the<br />

TCCI said it would continue<br />

to push for the support<br />

of Government and<br />

Opposition to reform local<br />

government as a major<br />

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<br />

<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong> 3<br />

Tourism flying high<br />

TOURISM in Tasmania is<br />

booming and the associated<br />

financial spin off is pushing<br />

the state’s business economy<br />

into record breaking territory.<br />

Tills are ringing right across<br />

the state, with small businesses<br />

on the verge of turning over<br />

a billion dollars in a single<br />

year for the first time.<br />

Tourism Industry Council<br />

of Tasmania figures<br />

show that since September<br />

2015, spending in Tasmania’s<br />

2000 or so tourism<br />

businesses has increased 23<br />

per cent to nearly a billion<br />

dollars in the 12 months to<br />

September 2018.<br />

Tourism Industry Council<br />

of Tasmania Chairman<br />

Daniel Leesong said accommodation<br />

and transport<br />

services accounted for the<br />

majority of tourism spending<br />

in Tasmania (about $1.5<br />

billion of the nearly $2.5<br />

billion expenditure.<br />

But, hundreds of unique<br />

producers, providores, tour<br />

guides and venues, among<br />

others, are also seeing the<br />

benefits of a buoyant sector.<br />

“It’s exciting to see that<br />

the more retail-orientated<br />

tourism businesses are in<br />

the midst of a billion dollar<br />

boom of their own,” he said.<br />

“This shows the tourism<br />

industry is absolutely fun-<br />

Support grows for bold waterfront vision<br />

A LOOMING Federal<br />

Election could ensure<br />

Hobart gets its chance for<br />

a “once in a generation<br />

Sydney Opera House”<br />

moment.<br />

Momentum is building<br />

as industry leaders promote<br />

the re-imagining of Castray<br />

Esplande and the CSIRO<br />

site.<br />

The tourism industry last<br />

year released its bold vision<br />

to relocate the CSIRO to<br />

Macquarie Point - with<br />

pressure now ramping up<br />

Above and Beyond’s seaplane flies over the Derwent River and Wrest Point.<br />

damental to the economic<br />

fabric of Tasmania.<br />

“It’s bigger than the value<br />

of salmon and forestry industry<br />

exports combined.”<br />

New ventures are literally<br />

flying high.<br />

Above and Beyond’s seaplane<br />

hit the skies above<br />

Hobart early in summer,<br />

offering passengers scenic<br />

flights over Hobart and to<br />

hot spots like Three Capes,<br />

Stewart’s Bay, Bruny Is,<br />

Pumphouse Point at Lake<br />

St Clair and Saffire at Freycinet.<br />

Gerald and Henry Ellis<br />

started Above and Beyond<br />

to bring something unique<br />

to the Derwent and the skies<br />

of Tasmania.<br />

More destinations are already<br />

being added and there<br />

for political support ahead<br />

of the Federal Election, due<br />

within months.<br />

The development of<br />

the area includes visions<br />

of a maritime museum,<br />

water-edge swimming pool<br />

and improved spectator<br />

infrastructure for the Sydney<br />

to Hobart Yacht Race.<br />

“We have an opportunity<br />

to capture the energy and<br />

vibrancy of the Taste of<br />

Tasmania and the summer<br />

festival period year-round<br />

by activating the wateredge<br />

of Castray Esplanade,”<br />

TICT CEO Luke Martin<br />

said.<br />

“There is no better place<br />

in Australia than the Hobart<br />

waterfront over this one<br />

week of the year, and it<br />

makes zero sense why<br />

these areas are left largely<br />

dormant for the remaining<br />

51 weeks of the year.”<br />

Hobart alderman Simon<br />

Behrakis is backing the<br />

Castray Point push, tabling<br />

a motion for the Hobart City<br />

Council to back the plan.<br />

are plans to add more aircraft<br />

to the fleet.<br />

“We have just been given<br />

approval to operate into<br />

Bathurst Harbour, Port Davey<br />

and Lake Pedder, we are<br />

waiting on similar approval<br />

to come through for Lake St<br />

Clair, Maria Island and Freycinet<br />

Peninsula,” Henry said.<br />

“We are hoping this will<br />

come through within the next<br />

three to four weeks,” he said.<br />

TICT CEO Luke Martin<br />

said there were many opportunities<br />

for new businesses in<br />

the state.<br />

“It’s important that we continue<br />

to look for innovative<br />

ways to develop and diversify<br />

our industry and share what<br />

is really special about Tasmania,”<br />

Mr Martin said.<br />

Destination Southern Tasmania<br />

CEO Alex Heroys said the<br />

new service was just the latest<br />

in a wave of new developments<br />

coming on line that were aimed<br />

at high-value, high-yielding<br />

customers.<br />

“There are other new examples<br />

on the market that are<br />

aimed at this type of customer<br />

– the Tas Walking Company’s<br />

Three Capes Lodge Walk and<br />

the incredible Evolve Spirit<br />

Bar at MACq01 hotel, to name<br />

two,” he said.<br />

“In the year ending September<br />

2018, we welcomed 1.3 million<br />

visitors who stayed more<br />

nights and spent a record $2.4<br />

billion in our communities, up<br />

4 per cent from previous year.”<br />

The industry is set to be even<br />

further enhanced, with the eyes<br />

of the nation’s tourism leaders<br />

to be focused on the state<br />

when Launceston’s Cataract<br />

Gorge hosts 800 at the Qantas<br />

Australian Tourism Awards on<br />

March 1.<br />

An artist’s impression of the Castray Point precinct.<br />

NEWS<br />

Bell<br />

Bay<br />

mill<br />

planned<br />

A $50 million hardwood rotary<br />

peel and engineered timber<br />

mill is being planned for Bell<br />

Bay.<br />

Patriarch Resources Pty<br />

Ltd, a subsidiary company of<br />

Patriarch and Sons Pty Ltd, is<br />

seeking to establish the forestry<br />

business on the site of the<br />

former Southern Aluminium<br />

Wheel Plant site in the industrial<br />

zone.<br />

Director Allen Wong said<br />

work was under way to obtain<br />

the appropriate development<br />

and environmental statutory<br />

approvals before a three-stage<br />

building process.<br />

“The construction of stage<br />

one and two is worth more<br />

than $28 million, covering site<br />

purchase, adaption of the factory<br />

and plant and equipment,”<br />

Mr Wong said.<br />

“More than $4 million in<br />

local building and electrical<br />

work will be required and will<br />

be directed to local firms as<br />

much as possible.<br />

“It is estimated that the project<br />

will create 30 to 40 jobs<br />

during construction, while the<br />

operation of the facility will<br />

create up to 80 positions.<br />

“A third stage – proposed<br />

engineered timber – will involve<br />

an additional investment<br />

of more than $22 million and<br />

will create further training and<br />

employment opportunities.”<br />

Mr Wong said Patriarch<br />

planned to purchase wood<br />

from existing public and private<br />

sources, comprising certified<br />

wood from plantations and<br />

native forests that was currently<br />

wood chipped.<br />

“The proposed veneer mill<br />

will provide opportunities for<br />

wood currently planned to be<br />

harvested to benefit from an<br />

additional value-adding process,”<br />

he said.<br />

“We will engage with a<br />

range of local experts, including<br />

the University of Tasmania<br />

to extend research into value-adding<br />

of plantation timber.”<br />

WANTED<br />

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Share the news<br />

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to TBReditorial@<br />

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4 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong><br />

THOUGHT LEADERSHIP<br />

Independents<br />

the likely losers<br />

Michael<br />

Bailey<br />

TCCI Chief Executive<br />

BY the time members<br />

read this column, the<br />

New Year will be but a<br />

distant memory – but I<br />

hope still a happy one –<br />

as <strong>2019</strong> charges on.<br />

As we look ahead,<br />

what sort of outlook is<br />

there for <strong>Tasmanian</strong> business?<br />

We know that Tasmania’s<br />

economy is growing;<br />

we know that business<br />

confidence remains<br />

high around the state.<br />

The major bogey is the<br />

Federal election come<br />

May or thereabouts.<br />

<strong>Tasmanian</strong> demonstrated<br />

its intentions at<br />

the last national poll,<br />

when four Labor members<br />

were elected and<br />

one independent in Andrew<br />

Wilkie in Denison.<br />

Interestingly, the reality<br />

is that on current and<br />

previous polling we will<br />

most likely have a new,<br />

majority Labor Government<br />

and a new prime<br />

minister, Bill Shorten.<br />

If that eventuates, the<br />

current crossbench pow-<br />

er of MHR’s such as Mr<br />

Wilkie, Cathy McGowan<br />

(Victoria), Bob Katter<br />

(Queensland) and Rebekah<br />

Sharkie (South<br />

Australia) will be diminished<br />

significantly.<br />

A majority Government,<br />

it enables whichever<br />

side of politics to<br />

ignore the independents<br />

and their policy concerns<br />

(at least in the Lower<br />

House, the Senate being<br />

another, different kettle<br />

of fish).<br />

As I have said previously,<br />

the Morrison Coalition<br />

Government will<br />

obviously fight hard on<br />

its economic record.<br />

The Prime Minister<br />

and Treasurer have already<br />

prefaced the handback<br />

of $9.23 billion in<br />

tax cuts from an anticipated<br />

surplus of $37.2<br />

billion over the next<br />

three years.<br />

On paper, a less than<br />

30 per cent return of the<br />

surplus to Australian<br />

households and business<br />

sounds reasonable.<br />

Australia goes to the polls around May.<br />

We will all watch the<br />

“Spendometer” tendencies<br />

of both sides of<br />

politics with great – and<br />

grave interest.<br />

On a technical financial<br />

front, inflation here<br />

and abroad has been<br />

painfully weak for years.<br />

Even the mid-year<br />

forecasts note that it has<br />

fallen this financial year<br />

compared with last.<br />

Next financial year,<br />

however, it’s forecast<br />

to rise to 2.25 per cent<br />

before moving up to sit<br />

right in the RBA sweet<br />

spot of 2.5 per cent in<br />

2020-21.<br />

It’s a similar story for<br />

wages.<br />

Wages growth has<br />

barely risen after an extended<br />

period of record<br />

lows, currently sitting<br />

just about 2 per cent.<br />

By 2020-21, however,<br />

it is due to rise to 3.5 per<br />

cent, well above the inflation<br />

rate.<br />

The TCCI is committed<br />

to fight for <strong>Tasmanian</strong><br />

business interests<br />

whoever wins the election.<br />

In fact, four <strong>Tasmanian</strong><br />

Labor members in<br />

a Shorten government<br />

could be an excellent<br />

outcome for the state,<br />

particularly if Franklin’s<br />

Julie Collins retains her<br />

Opposition spokesperson<br />

responsibilities in the<br />

Cabinet.<br />

www.tcci.com.au<br />

Customers deserve<br />

transparent banking<br />

Paul<br />

Ranson<br />

CEO, Bank of Us<br />

THE Australian Competition and Consumer<br />

Commission has released its final<br />

report on the Residential Mortgage Price<br />

Inquiry late last year.<br />

The ACCC found that bank customers<br />

have been left worse off due to imbalanced<br />

competition, unclear pricing and<br />

lack of information.<br />

As CEO of the only <strong>Tasmanian</strong> customer-owned<br />

bank, we’ve been advocating<br />

for a long time now, through our<br />

industry body COBA, for more competition<br />

and greater transparency in the<br />

banking sector to give Australian consumers<br />

a fair deal.<br />

Yet the report is a reminder to customers<br />

to look for alternatives to the four<br />

major banks and to not be satisfied with<br />

“better the devil you know”.<br />

There are 74 mutual banks, credit<br />

unions and building societies across<br />

Australia with award-winning and market-leading<br />

home loans.<br />

At Bank of us, we always talk about<br />

being customer-owned because it’s important<br />

for people to understand the difference<br />

between our model - that is solely<br />

focused on the customer, because 100<br />

per cent of our profits are used to benefit<br />

our customers, and that of our publicly<br />

listed cousins, whose goal is to generate<br />

profit over people.<br />

But what does it really take to change<br />

banks?<br />

It is hard when the banks price their<br />

products in a way that impacts our willingness<br />

to shop around.<br />

Headline interest rates are a poor indicator<br />

of the interest rate a borrower actually<br />

pays, making it difficult to compare<br />

like for like.<br />

And it’s not just the financial costs, it’s<br />

the time and effort it can take that inevitably<br />

puts “switching” into the too-hard<br />

basket<br />

We know, because of the stories uncovered<br />

during the recent banking royal<br />

commission, that there are many consumers<br />

who have been treated poorly by<br />

the major banks.<br />

So why do these banks still hold about<br />

80 per cent of residential mortgages?<br />

According to the ACCC report, many<br />

existing residential mortgage borrowers<br />

don’t regularly review their choice of<br />

lender and so it goes that the big banks<br />

are profiting from the inertia of their customers.<br />

Fewer than four per cent of variable<br />

rate residential mortgages with the major<br />

banks refinanced to another lender in the<br />

year to June 30, 2018.<br />

People just stay put and this makes it<br />

very hard for other banks, including customer-owned<br />

banks, to secure any of that<br />

80 per cent market share.<br />

The report goes as far as to tell borrowers<br />

how they can get a better deal.<br />

Starting with simply asking their lender<br />

for a better price on their existing residential<br />

mortgage product or switching to<br />

a cheaper mortgage with their existing<br />

lender or, drum roll … switching lenders.<br />

<strong>Tasmanian</strong> banking customers deserve<br />

greater competition and transparency<br />

in the banking sector.<br />

It’s now up to the policy makers to<br />

address these issues to give customer-owned<br />

banks a level playing field or<br />

else consumers will ultimately pay the<br />

price<br />

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Industries, Parks, Water and Environment (DPIPWE) have generously<br />

donated scholarships that will be offered to students enrolled in the<br />

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The scholarships, worth up to $4,000 per year, will be available to<br />

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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong> 5<br />

THOUGHT LEADERSHIP<br />

www.tcci.com.au<br />

Gain to come from port pain<br />

Brett<br />

Charlton<br />

Agility Logistics<br />

AT THE time of writing,<br />

the traders of Tasmania<br />

are feeling some pain<br />

with significant diminished<br />

capacity over Bass<br />

Strait during January.<br />

Readers of the December<br />

article will recall that<br />

this was the main theme<br />

– or in low brow terms<br />

… “I told you so”.<br />

Berthing issues in<br />

Burnie caused most of<br />

the pain - there was a necessity<br />

to share with oil<br />

and cruise vessels on the<br />

alternative berth that Toll<br />

is using while ramps are<br />

being installed to accommodate<br />

the new vessels<br />

due to arrive in March.<br />

The lack of capacity on<br />

the Toll vessels flowed<br />

through to Searoad and<br />

TT Line with all excess<br />

capacity being taken up.<br />

ANL rerouted one of<br />

its vessels to drop off<br />

equipment and move<br />

some international containers<br />

caught up in the<br />

deadlock.<br />

It is fair to say that this<br />

January will be remembered<br />

as one of the most<br />

difficult shipping periods<br />

for <strong>Tasmanian</strong> traders in<br />

recent memory.<br />

The saving grace is<br />

that traders should always<br />

keep front of mind<br />

that this is the “pain before<br />

gain” as when the<br />

berths are finished and<br />

Toll bring on its new<br />

vessels, coupled with<br />

Searoad’s investment last<br />

year, the capacity and efficiencies<br />

across Bass<br />

Strait should be set for<br />

another 10 years and any<br />

perceived restrictions to<br />

growth due to capacity<br />

across Bass Strait should<br />

be a conversation of the<br />

past.<br />

On my radar (and<br />

should be on yours) this<br />

year are the following<br />

emerging issues that are<br />

Berthing issues in Burnie caused pain during January.<br />

going to hit traders in<br />

terms of cost and process.<br />

• Mandatory export<br />

air screening in March<br />

– add cost and time for<br />

non-regulated traders<br />

(pretty much everyone).<br />

• Low sulphur conversion<br />

for international<br />

vessels – we are already<br />

seeing additional charges<br />

being applied per container<br />

for this in preparation<br />

for 2020 (expect<br />

more).<br />

• Brown marmorated<br />

stink bug (BMSB) – four<br />

ships have been turned<br />

back from Australian<br />

waters due to infestation<br />

not to mention significant<br />

treatment costs<br />

and delays in the supply<br />

chain working to ensure<br />

this disaster of a creature<br />

does not get its claws<br />

into Australian soil (expect<br />

this to continue and<br />

expand in <strong>2019</strong>).<br />

• Infrastructure surcharges,<br />

biosecurity surcharges,<br />

changes in international<br />

container lines<br />

rotations, possible international<br />

flights to and<br />

It is fair to say<br />

that this January<br />

will be<br />

remembered as<br />

one of the most<br />

difficult<br />

shipping periods<br />

for <strong>Tasmanian</strong><br />

traders in recent<br />

memory.<br />

from Hobart, trade missions,<br />

artificial intelligence<br />

and Donald Trump<br />

induced walls and trade<br />

wars.<br />

There is no lack of material<br />

to keep us all engaged<br />

in <strong>2019</strong> – best of<br />

luck out there.<br />

Savings in simplified health cover system<br />

Paul<br />

Lupo<br />

CEO, StLukesHealth<br />

THE first quarter of the<br />

new year is always a<br />

busy period for health<br />

insurers as members review<br />

their policy following<br />

the annual April 1<br />

premium adjustment.<br />

While the annual premium<br />

adjustments evoke<br />

strong reactions from<br />

media commentators, it<br />

is important to look at<br />

the drivers for such increases<br />

if we are to ensure<br />

the provision of<br />

health services is both<br />

affordable and accessible<br />

across the public and<br />

private sectors.<br />

Health insurance premiums<br />

increase because<br />

the costs associated with<br />

members’ claims continue<br />

to rise.<br />

An increase in people’s<br />

life expectancy and<br />

the prevalence of chronic<br />

disease has resulted<br />

in more frequent use of<br />

hospital procedures that<br />

come at a considerable<br />

cost.<br />

With health CPI sitting<br />

at 3.2 per cent for the 12<br />

months to September<br />

2018, it is pleasing to see<br />

the private health insurance<br />

sector is able de-<br />

liver its lowest premium<br />

increase across Australia<br />

in 18 years from April 1,<br />

<strong>2019</strong>, at the average rate<br />

of 3.25 per cent.<br />

In October 2017, the<br />

Australian Government<br />

Private Health Insurance<br />

Reforms were announced,<br />

with some<br />

notable changes from<br />

April 1, <strong>2019</strong>.<br />

Gold, Silver, Bronze<br />

and Basic product classifications<br />

for hospital<br />

cover will be implemented<br />

from April 1.<br />

The aim of this is to<br />

make it easier for people<br />

to understand, compare<br />

and choose their<br />

health insurance product<br />

through the use of standardised<br />

clinical definitions<br />

that a product<br />

must cover to receive<br />

the classification.<br />

All private health insurers<br />

are required to<br />

rename their existing<br />

products under these<br />

classifications.<br />

If your hospital cover<br />

is labelled as Gold,<br />

you will be covered for<br />

the most clinical categories,<br />

while if it is labelled<br />

Bronze you will<br />

have mid-level cover<br />

with exclusions on some<br />

categories.<br />

From<br />

a<br />

St.LukesHealth perspective,<br />

the organisation<br />

will only make minor<br />

changes to its products<br />

to ensure compliance<br />

with the reforms.<br />

If you receive advice<br />

from your insurer that<br />

your policy is being significantly<br />

modified under<br />

these changes, we<br />

strongly suggest you<br />

review your product to<br />

ensure you still have the<br />

appropriate level of hospital<br />

cover and that it is<br />

still providing you value<br />

for money.<br />

Also from April 1,<br />

your private health insurer<br />

will no longer<br />

be able to pay benefits<br />

towards some natural<br />

therapies previously<br />

covered under General<br />

Treatment policy.<br />

This was mandated by<br />

the Health Minister after<br />

the National Health<br />

Gold, Silver, Bronze and Basic<br />

product classifications for<br />

hospital cover will be<br />

implemented from April 1.<br />

and Medical Research<br />

Council found no clear<br />

evidence demonstrating<br />

the effectiveness of<br />

these techniques.<br />

Questions have arisen<br />

about how this change<br />

will apply to professionals<br />

providing natural<br />

therapies.<br />

A good example of<br />

this can be shown where<br />

physiotherapists use Pilates<br />

as part of a treatment<br />

plan.<br />

A private health insurer<br />

can lawfully pay benefit<br />

if a physiotherapist<br />

is providing this service<br />

to a patient within an accepted<br />

scope of practice<br />

– that is, a physiotherapist<br />

uses exercises or<br />

techniques drawn from<br />

Pilates as part of a treatment<br />

plan.<br />

Remember if services<br />

are withdrawn from<br />

your health insurance<br />

cover, your insurer is required<br />

to notify you of<br />

the change.<br />

Private health insurers<br />

are committed to finding<br />

more ways to improve<br />

the value proposition of<br />

products while ensuring<br />

that premiums remain<br />

within the members’ financial<br />

means.<br />

Hopefully with these<br />

reforms, we can announce<br />

an average premium<br />

increase lower<br />

than this year next April.<br />

ADVERTISEMENT<br />

Elise<br />

Archer<br />

Your local Liberal<br />

Member for Clark<br />

62 Main Rd, Moonah<br />

Please contact me:<br />

p: 6212 2210<br />

e: elise.archer@dpac.tas.gov.au<br />

m: PO Box 426, Moonah, 7009<br />

www.elisearcher.com<br />

Authorised by Elise Archer, 62 Main Rd, Moonah, 7009


6 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong><br />

THOUGHT LEADERSHIP<br />

Never downplay<br />

workplace safety<br />

Craig<br />

Hortle<br />

Workplace Health & Safety<br />

SAFE Work Australia recently<br />

released its reports<br />

for the 2016-2017 year.<br />

Some of the information<br />

is interesting and<br />

supports the active participation<br />

in a system that<br />

supports working safely<br />

at work.<br />

Just over nine people<br />

out of every 1000 workers<br />

sustains a serious<br />

injury in workplaces in<br />

Australia.<br />

The average claim per<br />

serious injury is $11,500.<br />

In Tasmania the incident<br />

rate of serious<br />

claims and disease for<br />

the 2016-2017 was 12.1<br />

per 1000 employees.<br />

The value of implementing<br />

a safe system<br />

of work in the workplace<br />

cannot be undervalued<br />

for the following reasons:<br />

• compliance to WHS<br />

legislation;<br />

• safety of workforce;<br />

• ability to negotiate<br />

with workers compensation<br />

insurer on premium;<br />

• less time off due to<br />

workplace injuries;<br />

• reduced costs for replacement<br />

workers for<br />

those that suffer injuries<br />

at work;<br />

• a more engaged<br />

workforce because of<br />

structured system of<br />

work; and<br />

• better productivity<br />

due to retained workforce.<br />

The development of<br />

a safe system of work<br />

can be simple and inexpensive<br />

as the majority<br />

of workplaces do not require<br />

the assistance of a<br />

WHS consultant.<br />

In Tasmania the incident rate of serious claims<br />

and disease for the 2016-2017 was 12.1 per<br />

1000 employees.<br />

Free information services<br />

on WHS requirements<br />

are available from<br />

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

of Commerce WHS specialists.<br />

This is open to members<br />

and non-members of<br />

the chamber.<br />

For more information contact Craig Hortle or<br />

Janelle Whitehouse at the TCCI on 1300 559 122<br />

or safety@TCCI.com.au<br />

www.tcci.com.au<br />

Launceston Cup<br />

holiday confusion<br />

Abbey<br />

George<br />

Workplace Relations<br />

LAUNCESTON Cup Day always<br />

causes much confusion each year as<br />

to whether it is regarded as a public<br />

holiday or not.<br />

As Modern Awards do not<br />

determine public holidays, an<br />

entitlement to a public holiday<br />

is determined by the National<br />

Employment Standards and by the<br />

industrial instrument in place at an<br />

organisation such as an Enterprise<br />

Agreement.<br />

For those employers covered by a<br />

Modern Award, to determine which<br />

days are local holidays, such as<br />

Launceston Cup Day, the National<br />

Employment Standards refer to<br />

those days which are “declared or<br />

prescribed by or under a law of a<br />

State or Territory to be observed<br />

generally within the State or<br />

Territory, or a region of the State<br />

or Territory” (Section 115(b) Fair<br />

Work Act 2009).<br />

Although for the vast majority<br />

of private sector employees,<br />

Launceston Cup Day has not<br />

been a legislated entitlement in<br />

the past, much confusion existed<br />

as Launceston Cup Day was<br />

previously listed as a statutory<br />

holiday; however, with amendments<br />

to the Statutory Holidays Act 2000<br />

in Tasmania in December 2010,<br />

Launceston Cup Day was removed<br />

and listed as a government holiday<br />

only.<br />

Therefore, for the majority<br />

of employees in the private<br />

sector, there is no entitlement to<br />

Launceston Cup Day, except for<br />

those employees that are covered<br />

by an Enterprise Agreement<br />

that provides for that specific<br />

entitlement.<br />

Having said this, some businesses<br />

choose to allow employees to have<br />

all or part of Launceston Cup Day<br />

off in any event and obviously<br />

this is a matter for each individual<br />

business.<br />

More information TCCI on 1300<br />

559 122 or workplacerelations@<br />

tcci.com.au<br />

OUR MEMBERSHIP<br />

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06460-26_18


<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong> 7<br />

THOUGHT LEADERSHIP<br />

www.tcci.com.au<br />

Courses tailored for the future<br />

LeeWhiteley<br />

University College<br />

Chief Executive<br />

THE saying “All Roads<br />

Lead to Rome” may be<br />

true, but not all roads<br />

make for a smooth journey<br />

and that’s something<br />

the team at the University<br />

College keeps in mind.<br />

When we design and<br />

implement our courses,<br />

we not only ask industry<br />

what it is that they are<br />

looking for in a graduate,<br />

we look at the different<br />

ways in which our students<br />

learn.<br />

There are encouraging<br />

examples of how the<br />

right pathway into further<br />

education can make<br />

your journey a positive<br />

and life-changing experience.<br />

This year is an exciting<br />

one with new associate<br />

degrees being offered<br />

across our three campuses<br />

in Burnie, Launceston<br />

and Hobart.<br />

One of the new courses<br />

on offer - Applied<br />

Technologies - has taken<br />

centrestage at this year’s<br />

MONA FOMA in Launceston.<br />

University College<br />

staff have given two local<br />

students a taste of<br />

the new associate degree<br />

through the creation of<br />

two cyborg puppets.<br />

Students Eleanor Ivery,<br />

17, a St Patrick’s<br />

College Year 12 student<br />

and Sebastian Knevett,<br />

21, a third year University<br />

of Tasmania ICT student,<br />

have spent the last<br />

few weeks bringing the<br />

large puppets to life by<br />

rigging them with sensing<br />

technology to control<br />

their limb movement via<br />

automation.<br />

With sensors everywhere<br />

and influencing<br />

our everyday lives, the<br />

Applied Technologies<br />

course is catering to a<br />

major growth area.<br />

The puppets are currently<br />

mounted on the<br />

wall at the Academy Gal-<br />

Students Eleanor Ivery and Sebastian Knevett brought puppets to life with sensing technology.<br />

lery at Inveresk and can<br />

be controlled through<br />

wireless sensors by<br />

members of the public<br />

willing to give the technology<br />

a try.<br />

Having the tools to<br />

confidently step into university<br />

study is no easy<br />

feat, but thanks to the<br />

University Preparation<br />

Program, 41 students<br />

took the plunge last year.<br />

Completion ceremonies<br />

were held in Burnie,<br />

Launceston and Hobart<br />

last month, to honour<br />

the students, which saw<br />

many fast-track into undergraduate<br />

degrees.<br />

The University Preparation<br />

Program is flexible<br />

and designed to provide<br />

adult learners with<br />

academic learning skills<br />

and the confidence and<br />

personal skills needed<br />

to succeed at university.<br />

Congratulations to<br />

one of our Agribusiness<br />

graduates Mady Muirhead,<br />

who has been accepted<br />

into the Ruralco<br />

Graduate Program for<br />

<strong>2019</strong>.<br />

Mady recently completed<br />

the Associate<br />

Degree in Agribusiness<br />

with the University<br />

College and completed<br />

her Diploma of Equine<br />

<strong>Business</strong> Management<br />

at Marcus Oldham College.<br />

Her strong passion<br />

for horses and interest<br />

in livestock and animal<br />

systems meant the Agribusiness<br />

course was a<br />

perfect fit for Mady.<br />

Hands-on industry<br />

experience within the<br />

course means students<br />

will not only have a<br />

firm understanding of<br />

agribusiness theory but<br />

know how to apply it in<br />

working environments.<br />

For more information<br />

check out our website<br />

at www.utas.edu.<br />

au/college<br />

Seek advice to navigate trade deals<br />

AUSTRALIA has now<br />

entered into 11 bilateral<br />

or multi-lateral Free<br />

Trade Agreements covering<br />

18 countries including<br />

New Zealand, Singapore,<br />

the US, Thailand, Chile,<br />

Korea, Japan, China, Brunei,<br />

Myanmar, Malaysia,<br />

the Philippines, Vietnam,<br />

Laos, Cambodia, Indonesia,<br />

Canada and Mexico.<br />

Additionally, agreements<br />

with Peru, Hong<br />

Kong and nations in the<br />

Pacific are concluded but<br />

not as yet in force.<br />

Negotiations are under<br />

Sally<br />

Chandler<br />

Tradestart Adviser<br />

way with the EU, the Gulf<br />

Co-operation Council and<br />

India and are proposed for<br />

the UK once that country’s<br />

Brexit negotiations<br />

are complete and passed<br />

by the British Parliament.<br />

It is very important to<br />

Under the China-Australia FTA,<br />

which came into force on<br />

December 20, 2015, most tariffs<br />

were reduced to zero<br />

note that FTAs don’t just<br />

allow for reduced tariffs<br />

and increased quotas or<br />

better still the elimination<br />

of tariffs and quotas,<br />

but also cover investment,<br />

greater access for services,<br />

intellectual property,<br />

e-commerce and government<br />

procurement.<br />

While Australia has<br />

been very proactive in establishing<br />

FTAs so have<br />

other countries – with<br />

each other.<br />

Under the China-Australia<br />

FTA, which came<br />

into force on December<br />

20, 2015, most tariffs<br />

were reduced to zero on<br />

January 1 this year in the<br />

latest round of tariff cuts.<br />

These included wine,<br />

seafood and horticulture<br />

products which will positively<br />

impact <strong>Tasmanian</strong><br />

exports.<br />

With some countries<br />

being covered by more<br />

than one FTA, exporters<br />

are encouraged to use the<br />

Department of Foreign<br />

Affairs and Trade’s FTA<br />

portal - https://ftaportal.<br />

dfat.gov.au/ - to ascertain<br />

which Agreement gives<br />

their buyer the best customs<br />

treatment on market<br />

entry at the border.<br />

And as always, I am<br />

readily available to assist.<br />

For international<br />

trade and investment<br />

assistance contact<br />

the TCCI’s TradeStart<br />

Adviser, Sally Chandler,<br />

at sally.chandler@tcci.<br />

com.au or phone 1300<br />

559 122.<br />

Disability enterprises deserve support<br />

FOR hundreds of <strong>Tasmanian</strong>s<br />

living with<br />

a disability, there is<br />

nothing more important<br />

than the dignity of<br />

work and the sense of<br />

purpose and stability<br />

that comes with having<br />

a job.<br />

Australian Disability<br />

Enterprises are notfor-profit<br />

organisations<br />

that provide supported<br />

employment to people<br />

living with a disability.<br />

Labor went to the<br />

March election with<br />

a policy to set a target<br />

to purchase goods<br />

JoshWillie<br />

Shadow Minister<br />

for Disability<br />

and services from local<br />

ADEs.<br />

Spending at least two<br />

per cent of the supplies<br />

and consumables<br />

budget would provide<br />

business opportunities<br />

and the chance to offer<br />

more training.<br />

ADEs not only offer<br />

jobs but the chance for inclusion<br />

and the opportunity<br />

to contribute.<br />

Organisations like<br />

Oak-Possability started<br />

Oakdale Workshop in Tasmania<br />

in 1964 and others<br />

followed.<br />

The focus was not only<br />

to see kids in work but to<br />

battle and change community<br />

attitudes.<br />

One of the many success<br />

stories is Dylan who,<br />

through his work experience<br />

at Oakdale Industries,<br />

has started his own<br />

business.<br />

Dylan’s Mowing Service<br />

operates across Hobart.<br />

Dylan says Oakdale<br />

has supported him into his<br />

dream job — being his<br />

own boss and working<br />

outdoors.<br />

<strong>Tasmanian</strong>s like Dylan<br />

should remind us of the<br />

United Nations principle<br />

that people living with a<br />

disability have the right<br />

to economic security and<br />

useful work.<br />

Tasmania has a 55-year<br />

history of achieving just<br />

that.<br />

But our Government<br />

should not overlook that<br />

proud history and should<br />

not exclude these important<br />

organisations.<br />

There are 11 ADEs<br />

owned and operated by<br />

<strong>Tasmanian</strong> not-for-profits<br />

and they employ about<br />

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

ADEs enable workers<br />

with a disability to do jobs<br />

including packaging, assembly,<br />

production, recycling,<br />

screen printing, gardening<br />

as well as cleaning<br />

and food services.<br />

They offer conditions<br />

similar to other employers<br />

and are valued by the employees.<br />

ADEs are funded by<br />

the Commonwealth Government’s<br />

Social Services<br />

Department but state governments<br />

have a role to<br />

play.<br />

Last year, National Disability<br />

Services signed<br />

an agreement with the<br />

Hodgman Government to<br />

streamline the process for<br />

government departments<br />

to procure the services of<br />

ADEs.<br />

Despite the agreement,<br />

there are no formal policies<br />

to mandate government<br />

to use ADEs.<br />

It was revealed, the<br />

<strong>Tasmanian</strong> Government<br />

agencies are not required<br />

to identify contracts<br />

awarded to ADEs.<br />

I think most <strong>Tasmanian</strong>s<br />

would agree that the Government<br />

should be procuring<br />

ADE services, as well<br />

as keeping meaningful<br />

data.


8 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong><br />

THOUGHT LEADERSHIP<br />

Jobs numbers building<br />

Sarah<br />

Courtney<br />

Building and Construction<br />

Minister<br />

TASMANIA’S building<br />

and construction sector<br />

is going from strength to<br />

strength.<br />

The extraordinary momentum<br />

in the industry is<br />

also helping to underpin<br />

broader economic confidence<br />

statewide.<br />

It is shaping up to be<br />

another great year for<br />

the industry in <strong>2019</strong>, but<br />

these results have not<br />

happened by accident.<br />

The Hodgman Liberal<br />

Government has been<br />

working hard to ensure<br />

we have the right conditions<br />

in place to stimulate<br />

more construction, create<br />

jobs and boost the economy.<br />

These strong results<br />

have been achieved in<br />

partnership with the entire<br />

industry, which has<br />

shown hard work and<br />

dedication in responding<br />

to this optimism with<br />

investments growing<br />

strongly across the commercial,<br />

residential and<br />

industrial sectors.<br />

Building and construction<br />

jobs are at industry<br />

highs with more<br />

than 23,000 <strong>Tasmanian</strong>s<br />

currently working in the<br />

sector.<br />

We are cutting red tape<br />

and continually working<br />

with industry to further<br />

streamline processes to<br />

make it easier, faster and<br />

cheaper to build in Tasmania.<br />

The increase in the<br />

total value of building<br />

approvals achieved the<br />

highest growth rate in<br />

Australia in the year to<br />

November 2018, up 39<br />

per cent, with the number<br />

of dwelling approvals increasing<br />

by 14 per cent<br />

over the same period.<br />

The value of total<br />

completed construction<br />

Construction workers are being kept busy.<br />

work increased by 11.3<br />

per cent to $2.9 billion in<br />

the year to the September<br />

2018 quarter, nearly seven<br />

times higher than the<br />

national growth rate.<br />

Importantly, this record<br />

growth is set to continue,<br />

with a 59 per cent<br />

increase in the value of<br />

Picture: Honed Architecture<br />

engineering construction<br />

work commenced in the<br />

year to September <strong>2019</strong>,<br />

and a near-doubling in<br />

the estimated value of<br />

work yet to be done to a<br />

year ago.<br />

I am proud of these<br />

achievements and motivated<br />

to continue supporting<br />

growth by ensuring<br />

we have a skilled<br />

workforce which can<br />

meet the growing demand<br />

in Tasmania.<br />

The success of this industry<br />

benefits all <strong>Tasmanian</strong>s<br />

with more homes,<br />

better infrastructure and<br />

importantly, more jobs.<br />

www.tcci.com.au<br />

Care for the<br />

vulnerable<br />

INQUIRIES into the<br />

abuse of vulnerable people<br />

raise the paramount<br />

question of just who is<br />

accountable when the<br />

worst happens.<br />

Professor Pamela Hanrahan,<br />

Deputy head,<br />

School of Taxation and<br />

<strong>Business</strong> Law, UNSW<br />

<strong>Business</strong> School, says the<br />

worst nightmare for any<br />

director of a non-government<br />

organisation working<br />

with vulnerable people<br />

is that someone under<br />

their organisation’s care is<br />

abused by one of its employees.<br />

The recently announced<br />

Royal Commission into<br />

Aged Care Quality and<br />

Safety, which launched<br />

hearings in mid-January,<br />

will likely bring community<br />

focus back to the accountability<br />

of thousands<br />

of NGOs now contracted<br />

or funded by governments<br />

to provide human services,<br />

including aged care,<br />

disability support services,<br />

child care and family and<br />

community services.<br />

NGOs and the individuals<br />

who serve on<br />

their governing boards<br />

and committees accept a<br />

heavy burden when contracting<br />

with government<br />

to provide human services<br />

to vulnerable people.<br />

Given the difficult legal<br />

position, the basis on<br />

which NGOs should be<br />

legally accountable when<br />

employees commit offences<br />

against the people<br />

they are charged to protect<br />

will likely be an important<br />

part of deliberations by the<br />

aged care Royal Commission.<br />

That’s why it is crucial<br />

for all organisations<br />

involved in the care of<br />

the vulnerable to be fully<br />

aware of their governance<br />

obligations and their duty<br />

of care.<br />

Registrations are now<br />

open for a new course offered<br />

by the Australian Institute<br />

of Company Directors<br />

(AICD): “Governing<br />

to protect vulnerable people”<br />

to be held on Thursday,<br />

March 14, <strong>2019</strong> at the<br />

<strong>Tasmanian</strong> Divisional Office<br />

in Hobart.<br />

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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong> 9<br />

Incat ferries in demand<br />

Super shakeup<br />

NEWS<br />

Tasplan hails<br />

focus on fees<br />

HSC Saint John Paul II in sea trials before departing for her new home in Malta.<br />

SEA trials are under way for<br />

Incat’s latest vessel as the<br />

ship builder confirms it has<br />

another international order<br />

to complete.<br />

As we go to print, the 110<br />

metre HSC Saint John Paul<br />

II is set to depart for her<br />

new home with Virtu Ferries<br />

in Malta servicing the route<br />

between Malta and Sicily.<br />

The wave piercing<br />

catamaran will be the largest<br />

high-speed catamaran in<br />

the Mediterranean, with<br />

a service speed up to 38<br />

knots.<br />

“Work commenced on<br />

HSC Saint John Paul II in<br />

2017, and together with<br />

other export orders has been<br />

a catalyst for the significant<br />

increase in workforce<br />

numbers at Incat over<br />

the past two years,” Incat<br />

Chairman Robert Clifford<br />

said.<br />

Incat has also confirmed<br />

work is under way on a new<br />

vessel for the Government<br />

of Trinidad and Tobago.<br />

The new fast passenger<br />

and cargo ferry will have<br />

capacity for 1000 people,<br />

including 224 VIP seats,<br />

and will carry 239 cars or a<br />

combination of trucks and<br />

cars.<br />

The Trinidad & Tobago<br />

inter-island seabridge has<br />

previously been served by<br />

two Incat vessels, the T&T<br />

Express and T&T Spirit.<br />

The new vessel will be<br />

delivered in 2020.<br />

TASPLAN Super has welcomed<br />

the Productivity<br />

Commission investigation<br />

into efficiency and competitiveness.<br />

CEO Wayne Davy said<br />

while the organisation was<br />

yet to digest the full detail<br />

of the 700-page report, any<br />

initiatives which encouraged<br />

better returns for members,<br />

improve fund performance<br />

and reduce fees were to be<br />

welcomed.<br />

“Super is our nest egg for<br />

our future retirement, with<br />

the aim of ensuring people<br />

can live comfortably when<br />

their working life comes to<br />

an end, so any initiatives that<br />

can increase the amount of<br />

super is to be welcomed,” Mr<br />

Davy said.<br />

“Removing unintentional<br />

multiple super accounts<br />

could save thousands of dollars<br />

for members, while for<br />

young people entering the<br />

workforce today, the Productivity<br />

Commission predicts<br />

over $500,000 in extra savings<br />

by the time they retire.<br />

Mr Davy said as a profit-for-members<br />

super fund,<br />

Tasplan has always been<br />

transparent with its fees and<br />

charges, but as the banking<br />

royal commission has shown,<br />

for-profit funds have not been<br />

as open and transparent with<br />

their charges, so any moves<br />

in this area would see better<br />

outcomes for consumers.<br />

“If <strong>Tasmanian</strong>s have<br />

learned anything out of the<br />

royal commission, it’s that<br />

there are super funds run<br />

by banks to make a profit<br />

and there are industry super<br />

funds, such as Tasplan which<br />

are run solely for the benefit<br />

of their members,” Mr Davy<br />

said.<br />

“The Royal Commission<br />

has made it clear that industry-based<br />

funds, such as<br />

Tasplan have a much better<br />

track record when it comes<br />

to fees and charges.”<br />

Mr Davy said any initiative<br />

that encouraged better<br />

financial returns to members<br />

was also to be welcomed, but<br />

cautioned against any radical<br />

approach to changing the<br />

way funds operate.<br />

“Any system that can promote<br />

better performance<br />

should be encouraged, but<br />

sometimes funds can take a<br />

number of years to generate<br />

strong returns and so financial<br />

returns must be looked at<br />

over the longer term such as<br />

five to 10 years, rather than a<br />

simplistic year on year comparison.<br />

“Super savings are about<br />

taking a long-term compounding<br />

approach to savings<br />

and so when comparing<br />

fund investment return, a<br />

long-term view must also be<br />

taken.<br />

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10 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong><br />

APPOINTMENTS and ANNOUNCEMENTS<br />

APPOINTMENTS<br />

Communications<br />

coup for Font<br />

TWO of Tasmania’s top political<br />

strategists and communications<br />

professionals, Brad Stansfield and<br />

Brad Nowland, have joined Font<br />

PR as partners.<br />

Font PR Managing Director,<br />

Becher Townshend said the “two<br />

Brads” would significantly expand<br />

the firm’s presence in Tasmania<br />

and interstate, taking the<br />

business to the next level.<br />

“Both Mr Stansfield and Mr<br />

Nowland bring high level communications<br />

skills, political acumen<br />

and government experience<br />

to Font PR as well as having a<br />

deep understanding of issues<br />

management in the local and national<br />

context,” Mr Townshend<br />

said.<br />

“Brad Stansfield is a highly<br />

respected political professional<br />

who was Chief of Staff to Premier<br />

Will Hodgman for eight<br />

years and masterminded the 2014<br />

and 2018 state election victories.<br />

“Brad Nowland was the Liberals’<br />

press secretary for a decade<br />

and worked closely with Brad<br />

Stansfield during this period,<br />

building a reputation for delivering<br />

exceptional results in the<br />

strategic communications and<br />

campaigning fields.<br />

Developer to fight for lake camp<br />

A DEVELOPMENT Application<br />

has been lodged with the<br />

Central Highlands Council for a<br />

new tourism development at Lake<br />

Malbena.<br />

The eco-tourism Standing<br />

Camp has been approved by<br />

State and Federal Governments<br />

as a development through the<br />

EOI process for National Parks<br />

and now requires planning and<br />

building approval from the<br />

council.<br />

There are expected to be<br />

public objections against the<br />

three accommodation pods and<br />

one communal area proposed to<br />

be built by Daniel and Simone<br />

Hackett for high-end fly fishing<br />

enthusiasts to be flown in via<br />

WP - Advert Feb17 - Proof 4.pdf 1 24/02/2017 9:08:21 AM<br />

Communicators Brad Nowland, left, Becher Townshend and<br />

Brad Stansfield.<br />

New chair for<br />

accountants<br />

THE new year is shaping up to<br />

be a busy one for Chartered Accountants<br />

Australia and New Zealand’s<br />

(CA ANZ) <strong>Tasmanian</strong> Regional<br />

Council, with Ruddicks’<br />

partner Lyndal Kimpton stepping<br />

into the role of chair.<br />

The organisation is preparing to<br />

take a more active role in advocating<br />

for better <strong>Tasmanian</strong> economic<br />

outcomes.<br />

Outgoing chair, BDO partner<br />

helicopter. Mr and Mrs Hackett<br />

are fighting against opposition<br />

from some anglers and the<br />

Greens.<br />

They said the development had<br />

been rigorously investigated and<br />

meticulously planned.<br />

The design requires less than<br />

a week to fully install, or fully<br />

remove, with only a few tent-peg<br />

like anchors used to secure the<br />

pods on-site, they said.<br />

“The infrastructure footprint<br />

is respectfully minimal:<br />

approximately 65sqm, and the<br />

camp would be completely<br />

hidden when viewed from offisland,<br />

or from our existing<br />

historical hut on the island,” Mr<br />

Hackett said.<br />

Paul Breen, will remain on the<br />

council after two years at the head<br />

of the table.<br />

Ms Kimpton said she was looking<br />

forward to utilising the unique<br />

knowledge base of CA ANZ’s<br />

network of 1000 practicing <strong>Tasmanian</strong><br />

chartered accountants to<br />

push for better outcomes for the<br />

state.<br />

“We have a wide range of members<br />

across business, industry<br />

and government with extensive<br />

knowledge of how Tasmania ticks<br />

financially,” Ms Kimpton said.<br />

“By harnessing this knowledge<br />

“This is the nature-based<br />

tourism model that <strong>Tasmanian</strong>s<br />

have been working towards for<br />

the past decade: small, sensitive<br />

and locally-owned, and operating<br />

CA ANZ <strong>Tasmanian</strong> Regional<br />

Council chair Lyndal Kimpton.<br />

and informing decision makers<br />

as well as the public, we hope<br />

to help the <strong>Tasmanian</strong> economy<br />

continue to build.”<br />

Ms Kimpton has been with<br />

Ruddicks since 2003 and specialising<br />

in services, audit and superannuation.<br />

She holds a certificate of registration<br />

as an auditor by ASIC<br />

and is CA ANZ’s representative<br />

on the ASIC Regional Liaison<br />

Committee in Tasmania and is an<br />

independent representative on the<br />

Launceston City Council’s audit<br />

committee.<br />

An artist’s<br />

impression of<br />

the proposed<br />

Lake Malbena<br />

development.<br />

within rural communities that are<br />

embracing the visitor economy in<br />

the post-forestry era.”<br />

Public submissions through the<br />

council close in early <strong>February</strong>.<br />

IN BRIEF<br />

Voice returns<br />

to the valley<br />

THE Derwent Valley Gazette has been<br />

returned to local <strong>Tasmanian</strong> ownership.<br />

The paper had been owned by media<br />

group Davies Brothers Pty Ltd but has been<br />

purchased by Font PR.<br />

Font PR Managing Director Becher<br />

Townshend said the masthead would be the<br />

best local news source for the Derwent Valley<br />

and would fight to ensure the region’s voice<br />

was heard.<br />

“With news becoming increasingly<br />

globalised through social media and the<br />

concentration of media ownership, we<br />

believe it is more important than ever for<br />

local communities to continue to have their<br />

own voice through publications such as The<br />

Gazette,” Mr Townshend said.<br />

The last<br />

issue<br />

of the<br />

Derwent<br />

Valley<br />

Gazette.<br />

The<br />

popular<br />

local<br />

paper<br />

returns on<br />

<strong>February</strong><br />

13.<br />

Tassie suburbs<br />

lead sale speed<br />

TASMANIA has topped the list for<br />

Australia’s fastest selling suburbs.<br />

Eight Hobart suburbs made the top 10 with<br />

only two suburbs outside the state – one in<br />

Western Australia and the other in NSW.<br />

The analysis was done by RiskWise<br />

Property Research and based on CoreLogic’s<br />

data regarding the average number of days on<br />

the market in the past 12 months.<br />

Lutana and Mornington both achieved an<br />

average of six days to sell for houses.<br />

The Australian average number of days on<br />

the market sits at 43.<br />

The eight <strong>Tasmanian</strong> fastest selling<br />

suburbs were Lutana, Mornington, Mount<br />

Nelson, Geilston Bay, Bellerive, Leah Valley,<br />

Claremont ad Lauderdale.<br />

Stenton Park in WA and Castle Cove in<br />

NSW, also made the list.<br />

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<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong> 11<br />

EVENTS<br />

LEFT:<br />

Attorney-<br />

General Elise<br />

Archer, left,<br />

Dominic Baker<br />

of Wrest Point<br />

& Country Club<br />

Tasmania and<br />

Kim Upton of<br />

Wrest Point.<br />

What:<br />

Wrest Point’s<br />

Merry Mingle<br />

ABOVE: Steve Barker of Spoken Media, left, and Chris<br />

McGregor of First National McGregor.<br />

RIGHT: Stacey Joseph, left, and Colleen Reardon from<br />

the TCCI.<br />

Where:<br />

Wrest Point,<br />

Hobart<br />

When:<br />

Tuesday,<br />

December 18,<br />

2018<br />

ABOVE: Polly Venning, left of <strong>Tasmanian</strong> IT and<br />

Selina Spowart of Wrest Point.<br />

ABOVE: Robyn Doyle of Doyle Soil Consulting, left, Claire Vervaart of<br />

Green Wave Projects and David Male of Murchison Software.


12 <strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - FEBRUARY <strong>2019</strong><br />

PROPERTY MATTERS<br />

Questions over tourism ‘brand’<br />

Scott Newton<br />

Property Matters with<br />

Knight Frank<br />

John Blacklow, Knight Frank Tasmania’s<br />

highly experienced specialist consultant<br />

for the tourism and leisure sector, shares<br />

his views on the Hobart tourism market.<br />

TASMANIA’S tourism boom<br />

continues to break records<br />

with 1.3 million visitors in<br />

2018.<br />

While the number of tourists<br />

has increased two per<br />

cent on the previous year,<br />

the growth rate has slowed,<br />

which was to be expected.<br />

These statistics do not include<br />

cruise ships which saw<br />

a record 127 ships visiting<br />

our shores – up 36 per cent.<br />

Hobart receives about 73<br />

per cent of the visitors to<br />

Tasmania, resulting in high<br />

occupancy rates as our city<br />

struggles to accommodate<br />

the tourists, particularly from<br />

December through to April.<br />

A report commissioned by<br />

the Government in 2017 indicated,<br />

that based on growth<br />

targets, Hobart city would<br />

require an additional 1478<br />

rooms by 2020.<br />

Since then Macq01 Hotel<br />

(113 rooms) and Ibis Styles<br />

Hotel (296 rooms) have<br />

opened, adding 409 rooms to<br />

the inventory.<br />

However, this has been<br />

offset by the loss of the Mid<br />

City Hotel (105 rooms) and<br />

the Fountainside Hotel (50<br />

rooms) which were purchased<br />

by the University of<br />

Tasmania in 2018.<br />

For <strong>2019</strong>, construction<br />

will commence, or continue,<br />

with the following hotels:<br />

• Crowne Plaza ​Liverpool<br />

Street - ​187 rooms;<br />

• Vibe Hotel ​Argyle<br />

Street​ - 115 rooms;<br />

• Marriott Hotel ​Davey<br />

Street - ​128 rooms; and<br />

Never before has Hobart experienced such strong growth in a relatively short time.<br />

• Un-named Hotel​​Elizabeth<br />

Street - ​72 rooms.<br />

So, by early 2020 Hobart<br />

will increase its room inventory<br />

by 756.<br />

This is still 722 rooms<br />

short of the growth target.<br />

Developers are seeking<br />

Development Approval<br />

from Hobart City Council<br />

for a number of sites that<br />

are proposed for hotels.<br />

These include:<br />

• Fragrance Group – Macquarie<br />

Street ​DA approved<br />

for 202 rooms;<br />

• Fragrance Group – four<br />

sites​ DA submitted and<br />

contested for 1066 rooms in<br />

total;<br />

• Lenna Courtyard Hotel,<br />

Battery Point -​DA sought<br />

for 85 rooms;<br />

• Salamanca Visitor Accommodation​-<br />

DA sought<br />

for 50 rooms; and<br />

• Tribe Hotel​ - DA sought<br />

for 104 rooms.<br />

These proposed developments<br />

would add a total 1507<br />

rooms, so potentially Hobart<br />

could go from an undersupply<br />

position to an over supply<br />

if all these hotels are approved<br />

as is and built, which<br />

is unlikely.<br />

Other potential projects<br />

in the Greater Hobart area<br />

include MOTOWN (172<br />

rooms), Kangaroo Bay (120<br />

rooms), Regatta Grounds<br />

(270 rooms) and Rosny Hill<br />

(82 rooms).<br />

Never before has Hobart<br />

experienced such strong<br />

growth in a relatively short<br />

time span.<br />

Although expansion was<br />

inevitable, the question now<br />

arises as to whether our present<br />

infrastructure can cope, or<br />

do we want “mass” tourism?<br />

Will our brand be affected?<br />

With large scale projects on<br />

the drawing board such as the<br />

Kunanyi/Mount Wellington<br />

cable car, MONA expansion,<br />

international flights, and the<br />

Macquarie Point Development,<br />

it is likely visitor numbers<br />

will continue to increase<br />

in the medium term.<br />

No doubt there will be<br />

much public debate as to the<br />

benefits or negatives associated<br />

with Hobart’s fastest<br />

growing sector.<br />

PROPERTY VIEW<br />

FEBRUARY <strong>2019</strong><br />

“PALFREYMANS ARCADE”<br />

340-344 Elizabeth Street, North Hobart<br />

BLUE CHIP BUNNINGS WAREHOUSE<br />

20 Howard Road, Glenorchy<br />

Outline indicative only<br />

SOLD<br />

Outline indicative only<br />

• North Hobart’s highest profile asset<br />

• Prized corner position within the “Lygon Street”<br />

of Hobart with three extensive street frontages<br />

• Highly flexible property, providing a mixture of<br />

retail and commercial tenancies over two levels<br />

• Strata titled with 3 units with a total strata area of<br />

611 sqm (approx)<br />

• Current Gross Income of $180,491 per annum<br />

plus GST (approx)<br />

• Landmark North Hobart Commercial Asset<br />

• Zoned: General <strong>Business</strong> providing good level of<br />

flexibility<br />

Matthew Wright 0458 290 588<br />

Richard Steedman 0408 559 046<br />

FOUNTAINSIDE HOTEL<br />

40 Brooker Avenue, Hobart<br />

• The Fountainside Hotel, offers four star luxury<br />

Hobart Accommodation in hotel ensuite<br />

rooms or self contained studio apartments.<br />

• The Fountainside Hotel has 50 rooms in<br />

total and is within easy strolling distance of<br />

the many restaurants in Hobart’s fabulous<br />

waterfront<br />

•<br />

• Hobart airport is a simple 20 minute drive<br />

away from Fountainside Hobart<br />

SOLD<br />

John Blacklow 0418 128 735<br />

Scott Newton 0409 186 261<br />

SOLD<br />

• Extraordinary 15.5% average annual sales<br />

growth since 1995.<br />

• Irreplaceable 38,310 sqm highway corner site.<br />

• Annual fixed 3% rent increases through to<br />

2040. Net rent: $439,555 pa<br />

• Extremely rare 25 year triple net lease to 2040<br />

plus 25 year option.<br />

• Strategic 38,310 sqm freehold site with over<br />

380 at-grade car spaces.<br />

• As new 16,900 sqm facility constructed in<br />

2015 at Bunnings’ cost, future proof with<br />

provision for 2,000 sqm on-site expansion.<br />

AT AUCTION<br />

Matthew Wright 0458 290 588<br />

THE GRANGE<br />

4 Commonwealth Lane. Campbell Town<br />

• The Grange Meeting and Function Centre<br />

(2007) is central Tasmania’s premier meeting<br />

venue ideally located in the large township of<br />

Campbell Town.<br />

• The facility provides 6 flexible conference<br />

rooms for up to 150 delegates<br />

• It offers a full range of catering from its large<br />

commercial kitchen to both indoor and<br />

outdoor courtyards with cafe, BBQ and<br />

dining options.<br />

• The property contains 3 titles with a land area<br />

of 2.7881 hectares (approx).<br />

SOLD<br />

John Blacklow 0418 128 735<br />

5 Victoria Street, Hobart 54 Cameron 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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