Industry News

The South Australian Government has announced $212.5 million in disability support, with $20 million being directed to fund the roll out of the Federal Government's National Disability Insurance Scheme (NDIS).

The funding represents a 15 per cent increase for the disability sector over last year's budget and will cover accommodation, care and respite.

“The demand for disability services is increasing and the State Government is reforming the way we provide support to people with a disability," Treasurer Jack Snelling said.

In an otherwise lean Budget, the spending forms the largest single new initiative.

The 2012-13 State Budget also includes an additional $1 million over two years to support not-for-profit organisations plan and prepare for the transition from the current block funding arrangements to a more competitive disability services environment in line with a proposed NDIS.

The South Australian Government has handed down its Budget for 2012-13, with Treasurer Jack Snelling announcing broad cuts to the public service as his Government aims to restore surplus in 2015-16.

Mr Snelling delivered the $284 million deficit budget after the state declared a "record revenue write down."

The State's Budget will see some 1,000 full time equivalent positions cut from the state's public service, which will save the state an estimated $160 million over four years.

Despite cuts to a number of large projects, Mr Snelling said he remains confident in the South Australian economic fundamentals.

“The economy is growing, unemployment is at historic lows, mining and exports continue to excel despite a relatively high Australian dollar and globally we are in a position of strength," Mr Snelling said.

“For the moment however we are faced with challenges which are being felt across the country, we have been faced with a $2.8 billion dollar revenue write-down from the last Budget - largely due to soft consumer spending and a subdued property market."

Major spending initiatives outlined in the budget papers include:

• $212.5 million to boost to disability services, the largest injection into disabilities in more than 25 years;
• $45.7 million on a one-off Water Security Rebate to help alleviate the costs of increased water prices;
   $38.3 million on a new Mining and Engineering Industry Training Centre to ensure South Australians have the skills for the mining jobs of the future;
•  $30.4 million on a new digital system for pathology testing for better patient care in our health system;
•  $28.7 million to redevelop the Parks Community Centre in Adelaide’s north-western suburbs;
•  $20 million to make sure South Australia is ready for a launch of the National Disability Insurance Scheme
•  $19.8 million in additional funding to boost support for our children in need of alternative care;
•  $8.3 million to boost equipment and training for our emergency services;
•  $8.3 million on an Advanced Manufacturing Strategy to support growth in this vital sector;
•  $5.6 million to extend the $8000 First Home Bonus Grant for at least another 12 months;
•  $5.1 million for a stamp duty concessions for people buying off-the-plan apartments in the City; and
• $3.3 million for a pilot program in Adelaide’s northern suburbs for early support for vulnerable families with infants with young children

While major cuts include:

• $372.9 million on the suspension of the electrification of the Gawler and Outer Harbor rail lines. The electrification of the Noarlunga line through to Seaford and the network train capacity will increase;
•  $255.6 million on making the public service more efficient by increasing their efficiency dividend from 0.25% to 1.0% from 2013-14 to be offset by $81.9 million of spending on a new public sector skills and retention entitlement to retain experienced public servants;
•  $166.8 million on the reduction of 1000 full-time equivalent employees in the public service through either targeted voluntary separation packages (TVSP) or natural attrition to be offset by $60.4 million of spending to the cost of providing TVSPs over the same period;
• $121.2 million on deferring the abolition of stamp duty on non-real property transfers;
• $120.4 million on the abolition of payroll tax exemptions for eligble apprentices and trainees to be offset by $48.1 million of spending re-target support directly to registered group training organisations;
• $77 million on deferring a redevelopment of the Queen Elizabeth Hospital and a rehabilitation in-patient unit at the Modbury Hospital.
• Merging the Department of Environment and Natural Resources with the Department of Water, not renewing the Government’s lease on corporate facilities at the Adelaide Entertainment Centre and ending funding for the Thinkers in Residence program and the Integrated Design Commission.

The South Australian Government has announced it will cut 1000 full time equivalent positions from its public sector over the next three years, while setting greater efficiency targets.

Treasurer Jack Snelling announced the cuts will save the state $166.8 million over the three years and will be balanced by $60.4 million in targeted voluntary separation packages (TVSPs).

“Savings measures are needed to reduce the size of the Government, reducing the pressure on the state’s finances while creating a leaner Government,” Mr Snelling said.

Mr Snelling also announced the state expects to save over $255.6 million through improved efficiency targets.

“This represents an increase in the current efficiency dividend from 0.25 per cent to 1.0 per cent from 2013-14,” Mr Snelling said.

“As is currently the case, agencies will have the flexibility to tailor the savings to their particular structures but we believe agencies will be able to find these efficiencies.”

“A smaller public sector needs to be more productive and it is, therefore, vital we retain the skills of our most experienced public servants,”

Internet Service Provider Internode’s founder Simon Hackett has announced he will step down from his executive duties to assume a seat the board of the company’s new owner, iiNet.

“The integration between Internode and iiNet technical systems has gone much faster than expected,” said Mr Hackett.

“While I will continue to represent Internode as I always have, I am keen to contribute at a group level, influencing the strategy of the entire iiNet group.”

Mr Hackett announced the selling of Internode to iiNet in December for $105 million in cash and iiNet shares.

“Simon Hackett has an enormous amount of experience and credibility in the industry. We are very pleased that he is willing to step up and join the board,” iiNet CEO Michael Malone said.

Other Internode staff are also stepping into key group roles within iiNet.

Internode’s Chief Technology Officer John Lindsay was recently appointed as iiNet Chief Technology Officer, now responsible for the network and operations for iiNet as well as Internode.  “Internode has had a reputation for running a first class national and international network,” said Mr Malone.  “It makes sense for the Internode and iiNet engineering teams to get together and for John to head it up.”

Fair Work Australia has announced a 2.9 per cent increase to the country’s minimum wage, with the national wage rising to $606.40 per week, or $15.96 an our. The increase equates to an additional $17.10 for the country’s lowest paid.

The increase applies to minimum wages for junior employees, employees to whom training arrangements apply and employees with disability, and to piece rates through the operation of the methods applying to the calculation of those wages. 

"In this review we have decided that the relevant statutory considerations favour a moderate increase, which will improve the real value of award wages and assist the living standards of the low paid," Fair Work President Justice Ian Ross said. 

Researchers at Switzerland’s Federal Polytechnic School have announced a breakthrough in spinal chord research after scientists restored voluntary lower body movement to a paralyzed rat.

Scientists used a system of neurorehabilitation involving a robotic harness and electrical-chemical stimulation to bring the rat’s central nervous system back to full operational capacity. The findings surpass our previous understanding of neuroplasticity, the way in which the brain and spinal chord recover from minor injuries, proving that under certain conditions, plasticity can take place in far more severe cases.

To achieve this degree of neuroplasticity, lead author Grégoire Courtine and his team injected a chemical solution of monoamine agonists into the injured rates, triggering cell responses by binding to specific dopamine, adrenaline and serotonin receptors located the spinal neurons. This cocktail replaced the neurotransmitters released by healthy subjects.

Five to 10 minutes after the injection, the scientists electrically stimulated the spinal cord with electrodes implanted in the outermost layer of the spinal canal, called the epidural space.

It is still unclear whether or not this method can be applied to human patients, but Mr Courtine said the findings hit at new methods for treating paralysis.

The results, published in the June 1 issue of Science, are the culmination of a five year study that promise to radically change our understanding of the central nervous system. 

The Victorian Government is urging the public to submit their comments on the future of the state’s water management fter a number of the sate’s water aurthorities released consultation papers on their draft water plans.

The four-month consultation period will allow Victorians to review and comment on their local water plan and proposed water pricing which will cover proposed services and prices from mid 2013 to mid 2018.

Minister for Water Peter Walsh said he strongly encouraged all members of the community to provide comment on the draft plans which will outline the pricing structure for water.

"Victorians have an opportunity to provide their feedback on how much they will pay for their water in the future, and what services will be included in this cost.

Mr Walsh said Melbourne water retailers had proposed price increases of between 19.4 per cent and 21.8 per cent over the five-year period.

Public comment is sought on these plans prior to submission of final Water Plans in September 2012 to the Essential Services Commission (ESC).

More information can be found here

The South Australian Government has announced it will abolish the payroll tax exception for apprentices and trainees, while re-targeting support directly to registered group training organisations.

The abolition of the exemptions will save the Government an estimated $120.4 million over four years, while the direct funding to support training in critical areas will cost $48.1 over the same period.

“Payroll tax does not appear to be a critical factor in the decision to employ apprentices and trainees for the majority of employers,” Treasurer Jack Snelling said.

“Instead funding will be targeted to encourage organisations to employ apprentices and trainees undertaking qualifications which are of strategic importance to the State.”

Mr Snelling said the direct funding in the form of Government grants allow for a more targeting support of training organisations.

The Department of Further Education, Employment, Science and Technology will administer the grants.

The Minister for Workplace Relations Bill Shorten has released the Trends in Enterprise Bargaining Report for the December 2011 quarter which shows that since the Fair Work Act began, more than 16 200 enterprise agreements have been made, covering 2.2 million employees including 260 000 employees covered by Fair Work Act enterprise agreements approved in the last quarter.    

“As at 31 December last year there were 22 457 agreements in operation covering almost 2.5 million employees, including the 2.2 million under the Fair Work Act,” Mr Shorten said.

“It is encouraging to see workplaces taking up the enterprise agreement option, which allows them to set pay and conditions to suit the needs of both workers and employers.”

The report also shows that the Fair Work system is delivering sustainable wages growth.  

The report by the Department of Education, Employment and Workplace Relations also shows that enterprise agreements made under the Fair Work system contain a range of provisions to improve productivity in the workplace. 

“Over 46 per cent of agreements contain a clause committing to improving productivity, more than 94 per cent of agreements have clauses for flexible engagement of employees and almost 74 per cent of agreements provide flexibility in hours of work,” Mr Shorten said. 

“It’s also pleasing to see that businesses and organisations continue to invest in training and staff development, with almost 90 per cent of agreements containing provisions relating to training.” 

Industries experiencing strong growth in agreement making include: 

• Financial and Insurance Services with an increase in agreements of almost 35 per cent, and the number of employees covered by agreements more than doubling; and
• Wholesale Trade, where the number of current agreements grew by over 50 per cent in the December quarter and the number of employees covered by agreements in this industry more than tripled.

“The outcomes of this report are a clear demonstration that this Government’s workplace relations policies are delivering fair, productive and sustainable outcomes for Australian employers and employees.” 

The December 2011 quarter Trends report is available here.

Renowned financial journalist and media entrepreneur Alan Kohler has stepped down from his position of Chair of the Board of Melbourne University Publishing. Former Provost and Executive of the University of Melbourne, Professor Peter McPhee, will replace Mr Kohler.

Professor McPhee, who is a Professorial Fellow of the University, will assume the role after Mr Kohler announced he would not renew his contract.  

An alumnus of Melbourne, Professor McPhee has held a Personal Chair in History since 1993. His senior roles at the University have included Dean, Deputy Vice-Chancellor and Academic Board President.

Welcoming the appointment Melbourne’s Vice-Chancellor Professor Glyn Davis said Professor McPhee’s vast experience in senior academic and management roles meant he was ideally placed to help MUP renew its focus on great academic publishing.

The Australian Human Rights Commissioner Helen Szoke has expressed her disappointment over the tone of the debate surrounding the Federal Government’s new Enterprise Migration Agreement, which will allow Roy Hill to sponsor up to 1,715 workers for the three-year construction phase through the 457 visa program.

“It is important that no workers are discriminated against and this should be a baseline consideration in employing workers,” Dr Szoke said.

“We are a country built on the work of people from all over the world and this debate must be looked at in that context.”

The Commissioner’s comments follow reports today that the mining sector believes EMAs incite racist and xenophobic sentiments and could threaten ties with Asia as the Prime Minister defends her policy of putting Australian jobs first.

The Federal Department of Industry, Innovation, Science, Research and Tertiary Education is looking to appoint a new Head of Division, Science and Research Group.

The Division advises the Minister on a range of policies and programs, including research policy and funding for universities and public sector research agencies and national and international science and research infrastructure. The role focuses on administration of relevant science and research funding programs; developing policy to help Australia achieve a strong science and research capacity; and advising on science and research issues of strategic importance.

The position  has been held since January 2010 by Ms Anne Baly.

The Australian Government is looking to fill the new position of Australian Small Business Commissioner.

The Commissioner will advise on and advocate small business interests within the Australian Government. He or she will also establish a National Information and Referral Service to assist small businesses in resolution of business-to-business disputes.

The appointment will be from January 1 2013 to 30 June 2016, based in Canberra.

The City of Perth is looking for a new CEO following the retirement of  Frank Edwards after a decade in the position.

Mr Edwards will finish with the City in September.

The City has more than 600 employees, a $166 million annual budget and assets of $840 million.  The new CEO will be paid a total annual remuneration of up to $327,034.

Figures released by the Australian Bureau of Statistics has released findings that show the managed funds industry had $1,869 billion, recording an increase of $84.9 billion, or 5 per cent, on the December 2011 quarter.

The figures were driven by the increase of $67.2 billion in consolidated assets of managed funds institutions.

The asset types to increase during the quarter were shares, $28.5b (7%); overseas assets, $15.9b (7%); deposits, $10.8b (6%); units in trusts, $5.4b (3%); bonds, etc., $4.1b (6%); short term securities, $2.4b (3%); land, buildings and equipment, $1.5b (1%); and loans and placements, $0.5b (1%). These were partially offset by decreases in other non-financial assets, $1.2b (6%); and derivatives, $0.4b (20%).

The main valuation effects that occurred during the March quarter 2012 were as follows: the S&P/ASX 200 increased 6.9%, the price of foreign shares (represented by the MSCI World Index) increased 10.9% and the A$ appreciated 1.3% against the US dollar.

ABS Building Approvals show that the number of dwellings approved fell 8.7% in April 2012, in seasonally adjusted terms, following a rise of 6.0% in March.

Dwelling approvals decreased in April in Western Australia (-46.7%), South Australia (-27.8%), New South Wales (-15.3%) and Queensland (-2.7%), but increased in Victoria (13.0%) and Tasmania (9.6%) in seasonally adjusted terms.

In seasonally adjusted terms, approvals for private sector houses fell 11.1% in April, with falls in Western Australia (-36.7%), South Australia (-26.4%) and Queensland (-11.6%). Private sector house approvals rose in New South Wales (2.0%) but were flat in Victoria.

The value of total building approved fell 5.4% in April in seasonally adjusted terms, and has fallen for 3 months. The value of residential building fell 6.7% while non-residential building fell 2.8%.

Further information is available in Building Approvals, Australia (cat no. 8731.0) on the ABS website at www.abs.gov.au

The latest ABS Retail Trade figures show that Australian retail turnover fell 0.2% in April 2012, seasonally adjusted, following a rise of 1.1% in March 2012.

The largest contributor to the fall was Household goods retailing (-0.8%), followed by Other retailing (-0.7%), Department stores (-1.0%) and Clothing and footwear and personal accessory retailing (-0.1%). There were rises in Cafes, restaurants and takeaway food services (0.4%) and Food retailing (0.1%). 

The state which was the largest contributor to the fall was Victoria (-1.6%), followed by Western Australia (-0.2%), Tasmania (-0.6%), the Australian Capital Territory (-0.6%) and the Northern Territory (-0.9%). There were rises in New South Wales (0.7%), South Australia (0.5%) and Queensland (0.1%).

In trend terms, turnover rose 0.3% in April 2012. This follows a rise of 0.3% in March 2012 and a rise of 0.3% in February 2012.

More detailed industry analysis and further information on the statistical methodology is available in Retail Trade, Australia 

James MacKenzie has announced he will stand down from the role of chairman of Pacific Brands after serving four years in the role.  

Current non-executive director Peter Bush will replace Mr MacKenzie, while Mr MacKenzie will stay on as a non-executive director.

The company’s Board thanked Mr MacKenzie for his service, recognising his ‘very significant’ contribution to the business and welcoming his decision to stay on the board. 

Capital expenditure has increased across the economy, with the mining sector driving the majority of 6.1 per cent growth according to the Australian Bureau of Statistics. The trend volume for estimated building and structures rose an estimated 10.5 per cent seasonally adjusted, while the trend volume for investment for equipment, plant and machinery fell by 0.1 per cent,

The trend estimate for Mining rose 10.0% in the March quarter 2012. Buildings and structures rose 10.5% and equipment, plant and machinery rose 3.5%. The seasonally adjusted estimate for Mining rose 14.0% in the March quarter 2012. Buildings and structures rose 15.6% and equipment, plant and machinery rose 7.1% in seasonally adjusted terms.

Estimate 6 for 2011-12 is $158,028m. This is 27.5% higher than Estimate 6 for 2010-11. Estimate 6 is 2.3% lower than Estimate 5 for 2011-12.