Industry News

The Victorian Government has released an issues paper on the possible provision of incentives for the installation of ceiling insulation under Victoria's Energy Saver Incentive (ESI) scheme.

Under the Energy Saver Incentive, energy retailers and other businesses can offer Victorian households free or discounted installation of energy efficient products such as lighting, shower heads, heating and hot water systems, high efficiency refrigeration, air conditioning, TVs, pool pumps and stand-by power controllers.

The issues paper, prepared by the Department of Primary Industries, includes a review undertaken by Futura Consulting to independently assess the potential risks highlighted by the Commonwealth's scheme and make recommendations to address these risks under a Victorian scheme.

Recommendations contained in the issues paper include:

• Setting mandatory training and experience requirements for installers;
• Introducing mandatory inspections after installation;
• Strengthening the audit and compliance powers of the ESI scheme regulator; and
• Introducing procedures for risk assessments ahead of installation.

The release of the consultation paper was welcomed by Carolyn Atkins, Acting CEO of the Victorian Council of Social Service, who said that many households could benefit from a responsibly managed scheme to help lower their energy bills.

The issues paper can be viewed on the Department of Primary Industries website at www.dpi.vic.gov.au. Submissions are invited by 17 August 2012 to This email address is being protected from spambots. You need JavaScript enabled to view it..

Download the Victorian Energy Efficiency Target Ceiling Insulation Issues Paper at: http://db.tt/JJ6ppsze

Download the Futura Consulting Ceiling Insulation Due Diligence Review at: http://db.tt/7sfF9MMW 

The Northern Territory Government has officially opened the $6.2 million, 12.5MW gas turbine at Katherine Power Station, forming part of the ongoing $1.8 billion infrastructure program aimed at upgrading the Territory’s power and water network.

Chief Minster Paul Henderson said the new turbine is part of the ongoing $14 million upgrade to boost Katherine’s power capacity by up to 50 per cent.

“Under our record $1.8 billion program, every single power station across the Territory is being upgraded,” Mr Henderson said.

Chief Minister Henderson said water services are also receiving a boost with work underway to upgrade the Katherine Wastewater Treatment Plant. The $5.1 million upgrade will see the construction of three new wastewater stabilisation ponds.

The Housing Industry Association (HIA) will convene the State of the Industry Roundtable in Canberra tomorrow, against the backdrop of what it calls the worst conditions the residential construction industry has faced in decades.

Residential construction is experiencing its second recession in four years,” said HIA Managing Director, Mr Shane Goodwin today.

“There are 20,000 fewer homes being built per annum than what has been the average for the last 20 years, which represents thousands of employees and contractors that won’t have work and millions of dollars in materials and related services that won’t be purchased.”

“Without the right policy responses from federal, state and territory, and local government to address the on-going contraction in the industry, we will continue to see real consequences for jobs, businesses, the supply of new housing and rental costs.”

In support of the concerns of the industry at the impact of the current housing downturn, the Roundtable will feature the release of independent research from the Centre for International Economics (CIE) demonstrating the substantial multiplier impact that housing has on the rest of the Australian economy.

The Federal Government has announced $1.3 million in funding for Australia’s next generation of solar researchers.

Announcing the funding, Federal Minister for Resources and Energy, Martin Ferguson, joined some of the grant recipients at the Australian Solar Institute's (ASI) ‘Three Minute Solar Thesis Challenge’ held at the Australian National University.

“The Skills Development Program supports the work of our upcoming solar researchers who will ultimately work with industry to help make solar more efficient and cost effective,” Minister Ferguson said.

“From techniques to improve the efficiency of solar cells made from low-cost and readily available organic materials, to investigating ways to optimise hybrid solar-diesel systems in remote areas using smart grids, the Skills Development Program is helping to drive Australian solar innovation.

"I was pleased to meet some of the recipients today and to emphasise that the Government is not only investing in the direct results of their work but in the long term development of their talent as researchers."

More must be done to ensure the booming number of medical graduates have access to adequate internship placements according to a report published in the Medical Journal of Australia.

The report, authored by Associate Professor Catherine Joyce from Monash University’s Department of Epidemiology and Preventative Medicine, the number of medical graduates, found that the number of medical graduates is projected to increase by almost 50 per cent to 4000 by 2016, and new approaches will be needed to find them all internship places.

Associate Professor Joyce said that bottlenecks in progressing graduates through the training system was one of a number of policy and planning issues that must be addressed if Australians expect to continue to enjoy the current standard of care.

The number of medical graduates doubled between 2000 and 2010 to 2733, and this is expected to rise to 4000 over the next four years," Associate Professor Joyce said.

"To cater for these increases, intern places will need to increase by 1000 over that period, an increase which will require a more flexible approach that includes primary care and private sector placements, in addition to those at public hospitals. In the current model, some graduates are already finding it difficult to obtain a placement and this situation is likely to worsen." 

The analysis showed that the increases in doctors entering the workforce were accompanied by a decline in the average hours worked by Australian doctors.

"Between 1999 and 2009 the average hours worked by doctors decreased from 45.6 to 42.2 per week. Effectively, that's 6000 fewer full-time equivalent doctors in the workforce," Associate Professor Joyce said.

"Doctors are increasingly influenced by the desire for work-life balance and this is reflected in reduced working hours, almost across the board."

The article also warns that a large cohort of highly experienced doctors are approaching retirement age, which is expected to create shortages in various specialised fields, including psychiatry and rural general practice.

A shortage of skilled professionals in Australia is expected to drive an increase in salaries over the coming year, according to the findings of the 2012/13 Michael Page International Salary and Employment Forecast Report, Australia.

The latest report, based on the survey responses of nearly 1,600 employers nationally, reveals 46% of all employers surveyed forecast skills shortages in the white collar recruitment market and 65% believe these skills shortages will cause salaries to rise above the inflation rate in the next 12 months.

In particular, growth in the Mining & Resources and related sectors will continue to impact Australia’s white collar employment market as sustained project volume creates increased demand for skilled professionals across a number of areas. The survey findings reveal 84% of respondents working for Mining & Resources companies predict a professional skills shortage in this sector in the coming 12 months, putting pressure on salaries and driving them up for these professionals.

Phillip Guest, Regional Managing Director for Michael Page International, Australia and New Zealand, says the survey findings illustrate the clear impact the Mining and Resources boom is having over the medium to long-term, particularly in the resources-rich states of Western Australia and Queensland.

“The level of project activity in the Mining & Resources sector, and the size and scale of many of these, is having a direct impact on Australia’s white collar recruitment market. Not only is demand for skilled professionals in this sector outweighing supply and creating skills shortages, particularly for all types of engineers, geologists and operations managers, it is also impacting other related sectors such as Construction,” he says.

While the strength in the Mining & Resources sector is compensating for weakness in some areas of others, such as Financial Services and Retail, overall Australia’s professional employment market has remained relatively stable and this sentiment is likely to be ongoing over the next 12 months.

The survey findings also reveal that the majority of employers (64%) will award average salary increases of between 3 and 6%, and 69% of surveyed employers will vary increases based on performance. These findings are comparative with those in the 2011/12 Michael Page International Salary and Employment Forecast Report for Australia.

“Most employers will look to award pay increases over the next 12 months in an effort to retain their best talent. As the professional employment market holds steady over the year, there will be a continued focus on talent attraction and retention strategies of which salary remains a key component,” says Mr Guest. “As skills shortages continue, particularly in buoyant sectors, we will most likely see salaries increase further over the next 12 months.”

The quarterly SkillsMatch ICT Skills Dashboard, released by ITCRA (Information Technology Contract and Recruitment Association Ltd shows that the ICT labour market in Australia has contracted, with the number of suitable candidates for each role falling in the second quarter of 2012.

However, while there are fewer candidates in the market, the candidates who are available have more of the skills that employers require.

ITCRA’s quarterly SkillsMatch Dashboard shows that there were, on average, six suitable candidates for each role advertised in the second quarter of 2012, dropping from the peak of eight available candidates in the first quarter of 2012.

According to Julie Mills, CEO of ITCRA, the drop in the number of suitable candidates reflects a drop in participation rate in the overall Australian labour market.

“The most recent ABS labour market data showed the participation rate was down to 65.2 per cent, from 65.4 per cent in May, and the SkillsMatch data reflects this,” said Ms Mills.

“Interestingly, despite the drop in the number of suitable candidates, the availability of candidates with in-demand skills has risen, indicating there has been a further aligning of the ICT skills market. Candidates are now offering six of the top ten skills employers are looking for, up from five of the top ten in the first quarter of 2012, and well above the 2011 low, where only two of the top ten requested skills were available,” she said.

“The increase in candidates with skills that employers need indicates that the skills mismatch is continuing to ease as job seekers are becoming more responsive to demand in the market.”

Ms Mills said some skills sets continue to remain elusive.

“SAP, 3G Modelling Systems, Infrastructure and Testing have all been in the top ten skills in demand since the start of 2012, and have not yet made the top ten available skills,” said Ms Mills.

“3G Modelling Systems skills were hardest to find, with only 23 per cent of roles requiring this skill being filled in the second quarter. Although this is up 10 per cent from last quarter, it remains an area of opportunity for job seekers if they are willing to retrain,” she said.

ITCRA’s SkillsMatch also shows that 73 per cent of ICT placements made in the second quarter of 2012 were for contract roles, while only a third were for permanent roles.

“The growing split between contract roles and permanent positions is a function of a nervous market being affected by global economic uncertainty. Many companies are reluctant to hire permanently in this environment, and continue to look for contractors for most ICT projects,” said Ms Mills.

A report by Deloitte Access Economics shows that Queensland is uniquely positioned to capitalise on its resources, tourism potential and a range of other products.

The report finds that the emerging Asian market is likely to drive robust growth across a number of sectors in the state, but a patchwork economy is likely to see some parts of the state grow at different speeds.

The 2012 Deloitte Queensland Index found substantial difference in economic speeds throughout the state.

Queensland’s economy sees the two-speed split in Australia writ large. Not only are different sectors doing very differently, so are different cities within the State,” Deloitte’s Chris Richardson said.

“That’s no surprise. The strength of the $A has had downright ugly impacts on some – cities such as Cairns and the Gold Coast as well as sectors such as tourism and manufacturing.”

“Housing construction also remains very weak, in part because big developers continue to struggle for development dollars from their banks and backers.  

“Although the patchiness in Queensland’s economy is still very evident, the State as a whole has its mojo back – economic growth is roaring back into life.”

The report found that growth areas in the state are not without their difficulties, with the resources sector facing the turning commodity price cycle, labour and equipment shortages and now taxation regimes.

The full report can be found here

WorkSafe Victoria has published a new industry standard for managing safety in the civil construction industry.

A guide to managing safety: Civil Construction Industry Standard covers:

•  earthmoving and infrastructure construction, maintenance and refurbishment works;
•  works at greenfield and short term sites; and
•  supply, acquisition and disposal, inspection, maintenance, registration and safe operation of powered mobile plant and equipment.

The guide is available here.

The Australian Competition and Consumer Commission (ACCC) has announced it has authorised the agreement between NBN Co and Optus for the migration of Optus’ HFC subscribers to the NBN and decommissions parts of the company’s HFC network.

Announced last June, the NBN Co described the decision by the regulator as a major milestone that underpinned the progress of the network’s rollout.

“The migration of Optus’ cable customers supports the NBN’s business case and confirms the network as the cornerstone of Australia’s digital communications future,” NBN Co’s CEO Mike Quigley said.

“Today’s final decision by the ACCC marks a further move towards a new industry structure in which open access to the NBN will allow any telecommunications and internet service provider the opportunity to offer a service to any customer via either fibre, fixed wireless or satellite.”

The Tasmanian Local Government Board has recommended a reduction of councillors at six of the state’s councils.

Tasmanian Minister for Local Government, Bryan Green, said he was now seeking feedback from councils and their communities before deciding whether to accept the report’s recommendations.

The board reviewed seven self-nominated councils who ahs requested have their numbers reviewed.

The Board recommended a reduction in the numbers at Central Coast, Devonport City, Glamorgan-Spring Bay, Glenorchy City, Kingborough and Tasman Councils, and no change at Break O'Day Council.

"The Local Government Board has developed a framework for determining the appropriate number of councillors for each council across the State and I urge those interested to have a look at the Board's work and provide me with their comments," Mr Green said.

Mr Green said he would make a decision on the Board's recommendations before the end of year.

The Board's Report on the Review of Councillor Numbers is available a http://www.dpac.tas.gov.au/divisions/lgd/local_government_board

The Productivity Commission  has released a consultation paper outlining the Commision’s general approach to industry reviews that it will undertake under guidelines issued by the Government on 15 June 2012.

From 1 July, a firm (or group of firms, or an organisation representing firms in a particular industry) is able to submit a request to the Government that the Commission assess the impact of the carbon pricing mechanism on their industry.

The Guidelines provide that firms requesting a review must submit preliminary evidence that they or other members of the industry are being ‘significantly adversely impacted’ by the carbon price, that this is likely to ‘persist’ and either give rise to carbon leakage or the ‘premature’ closure of an industry, or both.

The Government retains discretion as to whether it will refer a request for review to the Commission, based on its assessment of the evidence submitted.

The Consultation Paper is available here.

A new $33 million supercomputer is to be installed at the Pawsey Centre in Perth  with Cray Inc leading  a group of five supercomputing suppliers to build the supercomputer.

The supercomputer, to be operational in March 2013, will process data generated by the Australian Square Kilometre Array (SKA) Pathfinder (ASKAP)  and  the Murchison Widefield Array (MWA) radio telescope.

Both radio telescopes played a key part in Australia and New Zealand's recent successful bid to co-host the international Square Kilometre Array project.

The project is a joint effort by iVEC and the CSIRO. iVEC is an unincorporated joint venture between Western Australia's four public universities and the CSIRO, with the CSIRO acting as centre agent in procuring the supercomputer.

The Minister for Infrastructure and Transport, Anthony Albanese, has released the latest Australian Infrastructure Statistics Yearbook, showing that infrastructure investment is up 42 per cent in real terms since  2006-07 (the last full year of the  Howard Government) and is double what it was a decade ago.

The report shows that spending on roads and bridges is up 50% since 2006-07, railways is up 118%, and ports and harbours spending is up 305%.

Other areas of infrastructure expenditure include energy generators and pipelines (up 51% since 2006-07), water storage and supply (up 113%) and sewage and drainage (up 113%).

“On any objective measure, it’s clear that the reforms we’ve instituted—including the establishment of Infrastructure Australia—and the direct investments we’re making are working.  In just four years we’ve turned around declining investment in the nation’s infrastructure and begun building for the future,” Mr Albanese said.

The Yearbook, compiled by the Bureau of Infrastructure, Transport and Regional Economics, is available here.

Port Waratah Coal Services (PWCS) have released the results of a long-running study into the carcinogenic effects of coal mining in  response to growing concerns raised by the employees over the prevelance of cancer rates in the workforce.

Conducted by the University of Newcastle at PWCS's request, the study commenced in 2006 and included peer review and a medical expert's assessment of the findings.

The study surveyed hundreds of PWCS employees over a 23 year period.

Covering 859 PWCS employees from 1983 and 2006, the study found:

• 63 PWCS employees were diagnosed with cancer (58 men and 5 women).
•  Melanoma, prostate and colorectal (bowel) were the most common types of cancer found, making up nearly two thirds of cases detected.
•  Kooragang Island employees were 1.7 to 2.8 times more likely to be diagnosed with cancer when compared to the NSW population, the Australian population or Carrington terminal employees.

Advice by prominent Occupational and Environmental Medicine specialist Dr Ian Gardner shows that:

• Over the 23 years covered by the study a relatively small number of cancers were diagnosed, and none of these cancers are known to be associated with occupational or environmental exposures.
• The three most common types of cancer found in this study – melanoma, prostate and colorectal - are almost always influenced by hereditary and lifestyle factors.
•  These cancers are more likely to be detected by screening.
•  Most common cancers are very rarely linked to occupational or environmental causes.
•  There are significant regional variations in cancer, particularly melanoma, which is more prevalent in coastal areas.

PWCS has announced it is committed to all recommendations within the study, including:

• Assembling an expert panel to provide advice on developing a cancer prevention and screening program.
  • Encouraging employees at Kooragang Island to contact their GPs and adhere to recommendations regarding screening for melanoma, prostate cancer and colorectal cancer.
  • Consulting an independent Occupational Hygienist to evaluate the Kooragang Island site and its processes to recommend improvements, possible remediation and safety procedures.

Additionally, PWCS will engage an Occupational Medical specialist to advise on health matters generally.

These measures will complement and build on many health initiatives already in place at PWCS, including:  Comprehensive health programs encouraging employees to undergo cancer screening and medical check-ups.

• Asking the Hunter Prostate Cancer Alliance to give onsite advice about detecting and treating prostate cancer
•  Providing UV-safe uniforms and sunscreen.
•  Providing free and staffed gyms.
• Encouraging better eating practices and smoking cessation.
• Regular on-site environmental monitoring and testing, including groundwater and dust

Unions representing the majority of mental health professionals in Victoria have publically endorsed the Victorian Public Mental Health Services Enterprise Agreement (EBA), with Victorian Minister for Mental Health Mary Wooldridge welcoming the decision.

"This new agreement will help us to continue to improve outcomes for some of the most vulnerable people in the Victorian community," Ms Wooldridge said.

"It will also give mental health workers a pay rise consistent with the government's wages policy."

"This is a good deal for people with a mental illness, it's a good deal for mental health workers, it's a good deal for taxpayers and it's a good deal for our mental health system."

Ms Wooldridge also said that for the first time anywhere in Australia, an agreement had been reached that includes classifications and pay scales for consumer and carer consultants.

"People who have experienced mental illness, or those caring for people with mental illness, have a very real contribution to make in supporting clients and advising services on how to improve the safety and quality of care provided," Ms Wooldridge said.

Ms Wooldridge said the new enterprise agreement will operate until 31 March 2016, providing certainty of pay and conditions for mental health staff for four years.

The Minister for Foreign Affairs, Senator Bob Carr has announced that Australia will provide up to $100 million over five years to help build Indonesia's research capacity and study the impact of development assistance in alleviating poverty.

Senator Carr said the funding would give Indonesia extra intellectual firepower to lift millions more people out of poverty.

Examples of research could include promoting policies to ensure all children get vaccinated and women have access to midwives during childbirth.

A woman in Indonesia is 30 times more likely to die in childbirth than a woman in Australia.

"New research for better policy will reinforce Indonesia's social and economic progress," Senator Carr said.

"Policy-makers stand to benefit from more precise, timely and independent evidence about what works and what doesn't."

"This funding will build the next generation of Indonesia's anti-poverty think-tanks."

"And more importantly, millions more people will benefit from better access to basic health, education and social welfare services."

Australia will provide grants and technical help to 17 think-tanks and research institutions to boost links between their analysis and the practical needs of government.

An expert panel will be formed this year to consider new ideas and start funding research institutions by early 2013.

The Queensland Government is providing $250,000 to each of two research projects to be jointly undertaken and funded with Chinese partners under the Queensland-Chinese Academy of Sciences partnership.

The investment is matched by a similar contribution from Chinese authorities.

The Queensland Minister for Science, Information Technology, Innovation and the Arts Ros Bates said Queensland is the only sub-national government to have a jointly-funded collaborative research program with the Chinese Academy of Sciences (CAS).

“We are very proud of this relationship, which stems from our ability to turn scientific discoveries into economic benefits and better lifestyles for our respective citizens.

“This government wholeheartedly believes in the exchange and development of strategic knowledge as a way of placing our scientific capabilities on par with the best in the world.”

CAS President Professor Bai Chunli, who is a member of the Chinese State Council and a respected researcher, attended the announcement.

The funded projects are:

• Agriculturally-derived Water Pollution Mitigation – a collaboration between Griffith University and Wuhan Botanical Garden. Led by Professor Jon Olley and Professor Quanfa Zhang, the project aims to protect water resources from contamination

• An Induced Pluripotent Stem Cell Model for Amyotrophic Lateral Sclerosis – a partnership between the University of Queensland and Guangzhou Institutes of Biomedicine and Health. Led by Professor Chen Chen and Professor Miguel Esteban, the project tackles a devastating disease characterised by the progressive degeneration of motor neurones

Submissions for this year’s Queensland-Chinese Academy of Sciences grants were required to address either agricultural biotechnology or stem c

A new framework to provide a faster, more flexible and transparent approach to assessing the impact of industrial chemicals on human health and the environment has been launched by the Federal Government.

The Inventory Multi-tiered Assessment and Prioritisation (IMAP) framework has been designed to accelerate the assessment of industrial chemicals..

It uses a staged approach to look at the impact of unassessed industrial chemicals listed on Australia’s national inventory, the Australian Inventory of Chemical Substances (AICS).

The  framework has been developed by the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), the Australian Government regulator for industrial chemicals, in consultation with community, industry and government stakeholder groups.

The IMAP framework will be implemented in stages. Stage one which began on 1 July this year, will run over four years and see the assessment of about 3,000 chemicals on Australia’s national inventory that have been identified as priorities for early consideration.

They are chemicals for which NICNAS already holds information about their quantity or use in Australia, chemicals identified as a concern or for which regulatory action has been taken overseas, and chemicals reported in international studies analysing the blood in babies’ umbilical cords.

Stage one will also include an external review of the framework, which is expected to make recommendations on the most efficient and effective approach to assessing and prioritising the remainder of the chemicals on the national inventory.

Females and those aged 35-60 are at risk of not meeting their retirement objectives while weak investor sentiment continues, according to The University of Western Australia and Colonial First State Global Asset Management (CFSGAM) research.

The findings are based on the CFS-UWA Business School Equity Preference Index (EPI) which measures a sizeable database of managed fund data to gauge investor sentiment in Australia.

The overall results show a decline in concern over the vulnerability of equities has developed since September 2011. However when those figures are broken down, women continue to appear more sensitive to current changes in market performance than males.

Females were more likely to move out of equities than males after the Global Financial Crisis, which began in 2007. While this trend follows a historical pattern the researchers consider it could also follow that since the GFC, female employment has been slower to return than male employment.

The research cites that since a labour market trough in June 2009, unemployment among men has fallen 17 per cent compared with unemployment among females which has risen three per cent.

"The cautious investment behaviour of women raises concerns about lower female superannuation balances, with growing risk of not meeting their retirement objectives unless savings level increased," report author Winthrop Professor Ray da Silva Rosa said.

More generally, traditional investor groups aged over 35 have also shown a tendency to move out of equities and into capital preservation compared with younger investors.

"It's unclear if this lower preference for equities will continue but in Australia the relatively attractive deposit rates are creating little incentive to return. If confidence in equity markets fails to return, it's likely to have a severe impact on superannuation benefits, particularly for those most risk averse groups, which include females and middle age groups (35-49 and 50-59)," Professor da Silva Rosa said.

The report concludes that if investor confidence in equities does not return, there will be a need for an increase in savings levels to compensate for lower expected returns to meet the retirement needs of Australia's ageing population.