Industry News

The Federal Government has formed a new Ministerial advisory Council on Skilled Migration, aimed at providing the Government with expert advice on the role of skilled migration within the Australian economy.

“Skilled migration plays a valuable role in addressing current and future skill shortages, as well as lessening the impact of Australia's ageing population, and it's important that we have fresh perspectives on how to best address these issues,” Minister for Immigration and Citizenship Chris Bowen said.

Mr Bowen said the council members have been drawn from a wide range of backgrounds, experience and professional expertise.

'I welcome the appointment of Mr Michael Easson AM as chair of the 18-member council,' Mr Bowen said.

'Mr Easson brings substantial experience to the council from his work as the executive chair of the EG Property Group, business consultant at Allens Arthur Robinson, deputy chair of ACT Electricity and Water Corporation, director of Macquarie Infrastructure Investment Management and Metro Transport, independent director of ING Management, and former vice president of the Australian Council of Trade Unions.'

The other members of the new council include:

• Mr Grant O'Brien, Managing Director and CEO Woolworths
• Mr James Pearson, Chief Executive of Chamber of Commerce and Industry WA
• Ms Karen Read, General Manager of Financial Services, Commercial and Administration, Xstrata
• Mr Innes Willox, Chief Executive of Australian Industry Group
• Mr Paul Howes, National Secretary of Australian Workers' Union
• Ms Ged Kearney, President of Australian Council of Trade Unions
• Prof Peter McDonald AM, Director of Australian Demographic and Social Research Institute, ANU
• Mr Dave Noonan, National Secretary of Construction, Forestry, Mining and Energy Union
• Mr Peter Tighe, National Secretary of Communications, Electrical and Plumbing Union of Australia.

In addition, each state and territory will be represented by a government official nominated by its state premier or territory chief minister.

Delta Energy has announced the imminent closure of its New South Wales Munmorah Power Station after 45 years of operation. The station has been maintained on standby since late 2010.

The company cited decreasing energy demand in New South Wales, while admitting that the generator was unable to keep pace with the newer and more efficient generators and alternative energy sources.

The station’s ageing infrastructure, adding to the cost of maintenance, and the introduction of the Federal Government’s carbon tax further eroded its viability according to a statement by Delta Energy.

“As a part of the decommissioning of the station, the Delta Electricity Central Coast business will reduce in size,” Delta Energy’s CEO Greg Everett said.

“Approximately 100 positions were deployed at Munmorah when it was in service and since that time have been reassigned to work at Vales Point.

“The process of decommissioning will require staff activity at Munmorah over the coming weeks and we will consult with staff and unions on the structure of the business for the longer term”.

The decommissioning of Munmorah Power Station will involve the shutdown of all non-safety and non-essential service systems at the station, removal of fuel and chemicals and securing of buildings.

The Latrobe Valley Transition Committee (LVTC) has released a report that aims to guide the ongoing diversification of Victoria’s Latrobe Valley economy.

The report identifies a number of opportunities to help the region grow and diversify the area’s industry and labour market.

Federal Minister for Regional Development, Simon Crean, said the Commonwealth was committed to working in partnership with the Victorian Government and local leaders to continue to develop a plan for the economic diversity of the region.

"Despite political differences over carbon pricing, we are taking a bipartisan approach to building jobs and skills for the Latrobe Valley and diversifying the regional economy," Mr Crean said.

Mr Crean said the partnership between all levels of government, business and the community is facilitating the development of regionally coordinated and strategic responses – developed by the community – which contribute to the sustained economic, social and environmental wellbeing of the Latrobe Valley and Gippsland region.

"The LVTC report has identified the practical solutions to diversify the economic base. With a partnership approach from the three levels of government, and where appropriate, the private sector, the Latrobe Valley will diversify and transition its economy," Mr Crean said.

The full report can be found here

The Queensland Government has frozen the cost of the standard residential tariff (Tariff 11) at 2011-12 rates from the start of this month in a bid to offset Origin Energy’s price changes.

State Minister for Energy Mark McArdle upped the rhetoric against the Federal Government’s carbon tax by saying the tariff freeze would offset the Federal Government’s ‘ongoing cost-of-living pain.’

Mr McArdle said the freeze would continue while the Inter-Departmental Committee (IDC) and the Independent Review Panel (IRP) made an assessment on how best to reform power delivery in Queensland.

“Corporate structures, staffing, everything that drives prices will come under the microscope of this independent review process as it sets about recommending how to make the system work better,” Mr McArdle said.

The IDC will deliver a final report to government in January 2013. 

The Queensland Government has announced plans to wind back the state waste levy in a bid to reduce living costs.

Citing the roll out of the Federal Government’s carbon tax, State Minister for Environment and Heritage Protection Andrew Powell said that the government was moving to keep living costs down.

“The Newman government firmly believes the carbon tax is simply an extra cost that will place strain on our economy at a time of global uncertainty, and a time when Queensland’s economy desperately needs to grow,” Mr Powell said.

“We are focused on the need to cut the cost of living and cutting green tape. While we cannot control the gate fees of disposal sites, by removing this poorly managed waste tax we are doing what we can to help business and local councils lower their costs.”

Minister Powell said his department was also working with the waste industry to establish a strategy that delivered good environmental outcomes.

“The Newman government will not shy away from its responsibility to drive policy and regulation reform with regards to waste management, but we need to do this in consultation with industry,” he said.

“The government will be listening very carefully over coming months to all those with an interest in waste disposal and looks forward to forming productive partnerships to get the right end result.”

The Federal Government’s changes to the superannuation tax system has come into effect, ensuring that low income individuals on less than $37,000 per year effectively pay no tax on their contributions.

"For example if you work a day or two and week and therefore earn up to $37,000 a year, you will now see the 15 percent tax you used to pay on your superannuation abolished. Less tax on your super contributions means more money steadily building up for a secure retirement,” Minister for Superannuation Bill Shorten said.

The measure, known as the Low Income Superannuation Contribution, is funded by the Federal Government’s Minerals Resource Rent Tax, which came into effect at the beginning of the month.

As a result of this reform, the superannuation savings of low paid Australians will be boosted by almost $1 billion a year,” Mr Shorten said.

"That's $1 billion every year which instead of being taken in tax, is going straight into the nest eggs of everyday Australians to help them secure their retirement."

The 3.6 million Australians who will benefit from this reform includes:

• Around 1.1 million workers in NSW
• Around 910,000 workers in Victoria
• Around 800,000 workers in Queensland
• Around 260,000 workers in South Australia
• Around 360,000 workers in WA
• Around 90,000 workers in Tasmania
• Around 30,000 workers in the NT
• Around 50,000 workers in the ACT

The Federal Government’s new ‘tick and flick’ bank switching service has come into effect, allowing depositors to move their money in deposit accounts with greater ease.

The Federal Government announced the changes in a bid to ensure that financial institutions continue to improve their services to their customers.

The changes will see customers only need to fill out a single form to move their money to a new institution, with both institutions involved in the transaction having to arrange all transfers of money.

The Government’s credit card reform has also come into effect, aiming to ensure that customers don’t pay excessive interest payments for their credit-card accounts.

The Federal Government’s changes to credit law will:

• Force credit card lenders to allocate repayments to clear higher interest debts first;
• Stop lenders from bombarding consumers with pre-approved, tick'n'flick offers to increase their credit limits;
• Prevent lenders charging fees to customers who go over their credit limit unless they've expressly asked for this service;
• Make it mandatory for credit-card application forms to include a clear summary of key account features;
• Require all lenders to clearly warn consumers on their monthly credit statement of the consequences of only making minimum repayments.

The Federal government has announced the appointment of a new Chair and reappointment of commissioners to the National Water Commission.

Parliamentary Secretary for Sustainability and Urban Water, Senator Don Farrell, announced former South Australian Nationals MP and Minister for Water Security and the River Murray, Ms Karlene Maywald, as the Chair and Commissioner for a three year term.

"Karlene Maywald was South Australia's Minister for Water Security and the River Murray during one of the worst drought periods in living memory. She has a proven, long-standing track record in water management and is passionate about water reform in Australia," Senator Farrell said.

Australian Government-nominated Commissioner Mr Robert Freeman, former Chief Executive Officer of the Murray-Darling Basin Authority, has been reappointed. The two Commissioners nominated by the states and territories – Professor Stuart Bunn, Director of the Australian Rivers Institute, and Mr Chris Davis, former CEO of the Australian Water Association – have also been reappointed.

The Government will announce a fifth Commissioner as soon as the appointment process is completed.

Senator Farrell thanked outgoing Commissioners Ms Elaine Gardiner, Mr Lawrence Arthur, and Ms Sally Farrier for their efforts in overseeing the important work of the Commission and wished them well in their future endeavours.

The Federal Government has announced the extension of its Contract for Closure Program, citing ongoing complex negotiations.

The program, initially scheduled to finish at the end of June, will be extended to ensure continuing good faith between the Government and those seeking to use the scheme.

“Since the announcement of the Government’s Clean Energy Future package, complex negotiations have taken place in good faith concerning the contract for closure program,” Minister for Resources and Energy Martin Ferguson said.

“At the moment there are a number of complex commercial issues yet to be resolved including the need to ensure value for money.”

Forming part of the Federal Government’s Clean Energy Future Package, the Contract for Closure Program seeks to assist in the closure of up to 2,000 megawatts of high emissions-intensive generation capacity by 2020.

Under the scheme, eligible generators have been seeking payment by the Federal Government to retire their operations in an orderly way to ensure minimal impact of supply, workers’ entitlements and remediation.

There are five generators participating in the Contract for Closure Program:

• Alinta Energy;
• HRL;
• Hazelwood Power Partnership (91.8 per cent owned by International Power GDF Suez Australia);
• RATCH-Australia; and
• TRUenergy. 

Negotiations are expected to continue and the Government will endeavour to reach an outcome in the coming months.  Further information is at www.ret.gov.au.

The Federal Government’s new Commonwealth Procurement Rules have come into effect, providing Government officials with streamlined rules to achieve the greatest value for money when procuring goods and services.

The key changes include:

1. The CPRs are now rules (previously, they were Guidelines);
2. ‘Value for money’ has been reworded to clarify that it incorporates other policies of the Commonwealth and applies to the entire procurement process;
3. The AusTender 42 day reporting requirements has been clarified; and,
4. A new exemption from Division 2 has been added for procurement from a SME with at least 50 per cent Indigenous ownership.

“Coordinated procurements have improved the value for money achieved by agencies and have reduced costs for agencies and tendering costs for suppliers,” Minister for Finance and Deregulation Senator Penny Wong said.

The updated rules can be found here

The Federal Government has announced the inaugural members of the Telecommunications Universal Service Management Agency (TUMSA), the new statutory agency that will be tasked with ensuring basic telecommunications services are available to all Australians.

Peter Harris, currently the Secretary of the Department of Broadband, Communications and the Digital Economy, will serve as acting Chair for the coming three months pending an announcement about a permanent appointment.

The other members of TUSMA are Mr Cameron O'Reilly and Ms Rosemary Sinclair (appointed for four years); and Mr Keith Gomes, Ms Nicole Rich, and Ms Desley Boyle (appointed for three years).

TUMSA was established by the Federal Government to administer the delivery of a range of telecommunications safeguards, including the Universal Service Obligation.

The Agency has been tasked with ensuring that:

• All Australians have reasonable access to a standard telephone service;
• Payphones are reasonably accessible to all Australians;
• The Emergency Call Service by Telstra and the National Relay Service continues;
• Untimed local calls in extended zones are provided for; and
• Appropriate safety net arrangements are in place to support the transition from copper-based services to the NBN.

The Queensland Government has terminated its $75 million funding deed to the 250 megawatt Solar Dawn project in Chinchilla and the future of the project is now uncertain.  

The proposed Solar Dawn power plant near Chinchilla in South West Queensland is the preferred solar thermal power project in Round 1 of the Australian Government’s Solar Flagships Program.

 The Australian Government had committed $464 million to the project which then had until 30 June 2012 to meet financial close. The Solar Dawn project has indicated it has been unable to meet these conditions.

Solar Dawn will generate clean power with zero emissions and will use AREVA Solar’s Australian-pioneered Compact Linear Fresnel Reflector (CLFR) technology. The project involves a long-term research collaboration with The University of Queensland.

The project consists of approximately 450 hectares of infrastructure including a ‘solar field’ containing the mirrors and steam boiler tubes, and a ‘power block’ with the steam turbine generators and ancilliary equipment.

The Minister for Resources and Energy, Martin Ferguson, said that while the project has made considerable progress since being awarded funding, the Queensland government’s withdrawal was a disappointing development.

“The Solar Dawn project offers Queensland the opportunity to be at the forefront of solar thermal technology and home to one of the largest solar power stations in the world,” he said.

 “The Queensland Government is putting at jeopardy a project that represents $1.5 billion in economic investment to regional Queensland, 300 construction and local manufacturing jobs and a $68 million solar research and development program at the University of Queensland.”

“The Australian Government remains committed to the deployment of large scale solar energy technology in Australia and we want Queensland to have the opportunity to lead the world in solar technology,” Minister Ferguson said.

“I have therefore written to the Chair of the Australian Renewable Energy Agency, Mr Greg Bourne, referring the project to ARENA for further consideration.”

The future of the Solar Dawn project will now be determined by the newly created independent Australian Renewable Energy Agency (ARENA), which came into effect on 1 July 2012.

More information on the Solar Flagships Program is available at www.ret.gov.au. 

The New South Wales Government has released draft Industry Action Plans for the manufacturing, professional services, international education and research and digital economy sectors for final consultations.

The Industry Taskforces – four of six established by the NSW Government, with Creative Industries and Visitor Economy to report separately – have identified high-level strategic needs common across sectors, including actions to reduce business costs; improve government procurement processes; and raise the global profile of Sydney and NSW.

The International Education and Research Taskforce has developed draft recommendations to address the substance of what NSW has to offer international students as well as how NSW can better market and promote our offerings. In particular the recommendations address those key factors which influence international students’ decisions to study in NSW: the quality of teaching and research, the reputation of our teaching and research institutions and the quality of the international student experience in NSW.

The Professional Services Taskforce has identified that both the professional services industry and the NSW Government must work together to make NSW Centre of Leadership for the Professional Services Industry in Australia and the Asian Region. The Professional Services Industry Action Plan draft seeks to build on Sydney's standing as a globally recognised centre for professional services, making NSW a key constituent of global knowledge and decision making networks, and improving local industry competitiveness and innovative capability. The Professional Services Industry Action Plan includes a focus on finance and insurance, legal and regulatory services, and engineering services.

The Digital Economy Taskforce recognises that a strong and vibrant Digital Economy is essential to address the challenges facing the NSW economy over the next decade and to drive economy growth in NSW. It has the potential to transform existing industries, drive efficiency and productivity, and create new opportunities for Australian businesses to export innovation. The Digital Economy Industry Action Plan has a focus on digital content and applications, information services and analytics, and smart networks and intelligent technologies.

The Manufacturing Taskforce recognises that manufacturing companies need to agile, innovative and provide superior solutions to meet customer needs in order to grow and be successful in a highly competitive global environment and supply chain. The draft Manufacturing Industry Action Plan outlines the dual role of industry and Government in supporting the NSW Manufacturing industry and whilst recognising the particular strengths in food processing and beverage manufacturing, metal manufacturing, machinery and equipment manufacturing (including biomedical and medical devices, renewable energy technology and defence equipment), has taken a holistic view to lifting performance across entire supply chains.

"The release of draft Action Plans for each of these key industry sectors is the penultimate stage in the process, with further opportunity for consultation before the completion of the final Industry Taskforce reports later this year," Acting Premier Andrew Stoner said.

Industry stakeholders are invited to review the draft Action Plans and make final submissions by July 30. For more information and to make submissions visit haveyoursay.nsw.gov.au/iap.

The Victorian Government has claimed success in reducing costs for thousands of Victorian businesses with significant reduction to the cost of WorkCover premiums that took effect at the start of the week.

State Treasurer Kim Wells said the cuts will see almost 50 per cent of Victorian businesses benefit from a $57 million reduction.

"WorkCover premiums have been reduced from 1.338 per cent of employers' remuneration to 1.289 per cent," Mr Wells said.

"This will save three per cent on the average insurance premium rate for Victorian workplace injury insurance and will see premiums reduced by more than 10 per cent for almost 59,000 businesses."

Mr Wells said Victoria had the lowest workplace injury insurance premiums in Australia and the lowest rate of workplace injuries, illnesses and deaths of all states.

"Reducing the number of injuries each year and encouraging employers and injured workers to look for opportunities to return to work are crucial in reducing the costs of running the scheme," Mr Wells said.

"Cost savings can then be passed on to employers in the form of reduced premiums. Like any form of insurance, good performers see the benefits, while others pay more if their own performance, or that of the industry in which they operate, deteriorates."

Mr Wells said WorkCover premium reduction would help attract investment to Victoria and would enhance the state's reputation as a good place to do business.

The Murray-Darling Ministerial Council has convened at Canberra to consider the current draft Basin Plan and broader water management issues.

The council, headed by Federal Environment Minister Tony Burke and attended by his Murray-Darling state counterparts, met to consider major issues raised by the state surround the Murray-Darling Basin Authority’s Draft Basin Plan.

The major issues discussed at the meeting were

• Apportionment of the shared 'downstream' component of Sustainable Diversion Limit (SDL) reductions;
• Potential to incorporate an SDL adjustment mechanism into the Basin Plan with the objective of enhancing environmental outcomes and reducing socio-economic impacts;
• Proposed groundwater SDLs; and
• The merits of a formal review of SDLs in 2015, (as is currently proposed in the draft Plan).

The Federal Government’s Road Safety Remuneration Tribunal has commenced operations this week,  with the body set to start setting pay and conditions for truck drivers in a bid to reduce pressures forcing them to try and meet unrealistic deadlines.

Minister for Workplace Relations Bill Shorten said the move will significantly reduce the road toll associated with trucks, which currently sees around 250 people killed per year and over 1,000 suffer serious injuries in accidents involving trucks.

“We know some truck drivers are pressured to cut corners on safety and maintenance and feel they need to take illicit substances to keep them awake just to get to destinations on time,” Mr Shorten said.

Parliamentary Secretary for Workplace Relations Jacinta Collins said the work of the Tribunal will reduce the economic incentives for drivers to make unfair and unrealistic deadlines, cut corners on safety and maintenance, or take illicit substances to keep them awake to get to destinations on time.

“The Tribunal will make a real difference in improving road safety for truck drivers, their families and all Australian road users,” Senator Collins said.

“Research and an evidence-based approach will be used to determine pay and working conditions that do not encourage unsafe driving. All stakeholders with an interest in a matter before the Tribunal will have the opportunity to put their views forward.”

The Tribunal will also be able to resolve disputes involving truck drivers from 1 January 2013 and will be able to approve collective agreements between a hirer and owner drivers.

The Minister also announced the appointment of Tribunal Members representing Fair Work Australia (FWA) and the road transport industry.

The Tribunal’s President, Jennifer Acton, and the other three Tribunal members, SDP Lea Drake, Commissioner Asbury and Commissioner Hampton have a wealth of experience in dealing with workplace relations issues.

The Tribunal will also include four industry members, Professor Anne Williamson, Steve Hutchins, Tim Squires and Paul Ryan.  The industry members were chosen from a merit-based selection process and have a range of experience from management of a small truck fleet, research on heavy vehicle safety and experience in industrial negotiations for both big and small players within the transport and logistics industry.

The boards of St Barbara Limited and Allied Gold have announced the creation of an international diversified gold producer following a successful merger. According to a joint statement, the merged company has a forecasted gold production of approximately 435,000 ounces in the 2012-13 financial year.

The boards of the company have said the combination of the assets of the two companies has a self-evident financial and strategic rationale and that the merger is clearly value enhancing.

The respective boards backed the merger on the grounds that the two company’s share complementary business, development and funding profiles as well as an anticipated strong asset growth.

Commenting on the merger, St Barbara’s Managing Director and CEO Tim Lehany outlined the projected growth of the merged company.

“The strategic and financial logic of the combination is clear, driven by the complementary nature of the two companies and the strong organic growth profile of the combined business.    It will deliver a diversified asset portfolio spanning exploration to gold production,” Mr Lehany said.

Yanzhou Coal backed Yancoal has listed on the Australian Stock Exchange (ASX) following the successful merging with Gloucester Coal and specific assets of the previously unlisted portfolio of Yancoal Australia. The company is one of the largest pure-play coal companies in the country.

The merger creats one of Australia’s largest listed mining companies, with operational mines in New south Wales and Queensland and with significant investments in two coal export terminals at Wiggins Island in Gladstone.

Yancoal purchased its first Australian mine in 2004. This was followed by a series of other mine purchases and significant expansion from 2006.

Yancoal’s major shareholder Yanzhou Coal Mining Company Limited is the only Chinese coal mining company that is listed on the Shanghai, Hong Kong and New York stock exchanges. It is also one of China’s largest international mining groups by market capitalisation, integrating coal mining, coal chemical conversions and power.

The University of New South Wales will host a new centre targeting primary care in obesity to improve access to services and management of the widespread, chronic condition.

The Centre for Obesity Management and Prevention Research Excellence in Primary Health Care has been funded by the Commonwealth Government under a $7.5 million ANU Australian Primary Health Care Research Institute program.

One in four adults and one in 12 children are obese in Australia and the UNSW-based centre will help people with lifestyle changes to achieve their weight goals, in collaboration with researchers from the University of Sydney, Deakin University and the University of Adelaide.

UNSW Professor Mark Harris will lead the new research program.

UNSW will also partner with the University of Technology, Sydney and the University of Queensland in the Centre of Research Excellence in the Finance and Economics of Primary Care.

The Western Australian Government has announced it is proceeding with a comprehensive assessment of the planning, environmental, transport and community issues associated with container port options in the coastal area from Naval Base to James Point.

The State Government has announced its intentions to identify an area with sufficient land for handling large quantities of cargo while being able to accommodate future generations of ships.

According to the State Government, research has identified the coastal area Naval Base to James Point in Cockburn Sound as the most suitable location for additional container-handling port facilities.

State Planning Minister John Day said the Western Australian Planning Commission was seeking a consultant to assess the project proposals that have been identified.

“It is apparent that, given the number of strategic port, industry and utility interests in that area, it is vital that all relevant issues are addressed through a rigorous technical assessment process,” Mr Day said.

“The land use planning assessment of project proposals will identify any gaps in technical studies and guide future amendments to the Metropolitan Regional Scheme.

“The study will take into account the environmental values pertaining to the Outer Harbour and Cockburn Sound and the impact of new proposals for industrial developments between the Naval Base and James Point.

“To ensure that a strategic approach is adopted to land use planning in this important industrial area, the WAPC has resolved to defer any MRS amendments between Naval Base and James Point until the findings of this assessment are presented to Government in May 2013.”