Tasmanian Business Reporter February 2019

tbreditorial

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.

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

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ALAN

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www.tcci.com.au/Events/Strong-Australia

or phone 1300 559 122

FRANCES

BENDER

EVENT PARTNERS

MICHAEL

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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

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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

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Circulation: 12,000

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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

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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

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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.”

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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

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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.

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Your local Liberal

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Please contact me:

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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

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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

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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.

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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.

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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

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