Industry News

International management specialist BlockRock has announced the appointment of Justin Arter as the company’s new Country Head of its Australian operations.

Mr Arter will be responsible for the future development and growth of BlackRock Australia and will report to the company’s Asia Pacific Chairman, Mark McCombe.

Mr Arter will join BlackRock after leaving Victorian Funds Management Corporation (VFMC), where he served as Chief Executive Officer. Prior to his time at VFMC, Mr Arter had an 18 year career at Goldman Sachs JB Were.

Mr McCombe said Mr Arter’s appointment was indicative of the company’s newfound focus on the Australian market.

“The size and sophistication of the Australian market makes it a key area of focus for BlackRock Asia Pacific. A leader of Justin’s calibre, with his outstanding track record in financial services, will be integral to BlackRock Australia’s growth plans. His appointment reflects the importance we place on building our business in this compelling investment environment,” Mr McCombe said.

Mr Arter will commence his work in September. 

The Western Australian Government has announced $3 million in spending to implement cat legislation aimed at reducing the thousands of stray cats being euthanised each year.

State Local Government Minister John Castrilli said the funding would also be used to help promote responsible cat ownership as the legislation is rolled out over the next 18 months.

The aptly named Cat Act will see owners require the identification, registration and sterilisation of their feline companions, while local governments will be given the power to enforce the legislation.

The legislation will also attempt to mitigate the negative effects of the state’s feline population by funding cat pound facilities and for other capital costs, including microchip readers, cat traps and ranger training.

The State Government will conduct a consultative process to deliver the best cat management strategy.

“The Department of Local Government will be working with veterinarians and other stakeholders over the next six months on the best way to provide this assistance,” Mr Castrilli said.

“Efficient and cost effective means of providing these facilities are being explored in conjunction with cat welfare organisations and local governments.”

According to the State Government, there is overwhelming support for these initiatives from both cat people and non-cat people, as shown in the 590 submissions received in response to a consultation paper released in 2010.  

We’re not sure if anybody’s told the cats about the forced steralisation initiative though. 

Two of Hastie Group’s non-executive directors have stepped down from their positions after the group spirals into liquidation.

Lindsay Phillips and Harry Boon have both left the company as a $20 million accountancy irregularity has seen the company appoint voluntary administrators.

The engineering services company’s spectacular collapse has seen 3,000 jobs lost, while its $540 million debt to its banking fanciers will most likely have to be written down.

Fair Work Australia (FWA) has found that cabin crew recruited in Thailand are underpaid by as much as half of their minimum entitlements.

Fair Work Ombudsman said the pay rate is unacceptable and has requested the Federal Court to ban the practice. The Ombudsman has found Jetstar’s Thai employees should be paid double the amount they currently receive.

FWA commenced litigation last Friday involving eight foreign workers but, subject to the findings of the Court, the Ombudsman expects that number to grow to up to 300.

Facing Court is Singapore company Valuair Limited and Thai company Tour East (T.E.T.) Limited - companies which recruit cabin crew to work exclusively for Jetstar on both international and domestic flights.

Valuair and Tour East are part-owned by Qantas.

The Fair Work Ombudsman is seeking to have Valuair and Tour East reimburse the eight more than $7500 it alleges they are owed in back-pay. It is also seeking penalties against Jetstar Airways Pty Ltd.

The Fair Work Ombudsman alleges Jetstar Airways was knowingly a party to underpayment contraventions. It alleges Jetstar rosters the foreign cabin crews onto its Australian domestic flights and is aware of the rates they are being paid.

The Queensland Government has approved a major 44 kilometre sector of pipeline within the Callide Infrastructure Corridor State Development Area (CICSDA), a major section of the 435 kilometre gas transmission pipeline for the Gladstone project.

The Coordinator-General’s approval of the Santos project will allow the project to progress through to the next stage.

“Santos Limited has passed the final major step in meeting the Coordinator-General’s EIS conditions and can now get on with the job of delivering a project which will bring major economic benefits to Gladstone and Queensland,” Deputy Queensland Premier Jeff Seeney said.

“This pipeline section is a key component of the gas transmission pipeline network required to deliver gas from the coal seam gas fields to the liquefied natural gas facility export facility being constructed on Curtis Island.”

The Federal Government has introduced a package of bills that will aim to reform the way in which the country regulates all commercial vessels within territorial waters. The legislation will replace the seven existing Federal, state and territory bureaucracies and the fifty separate pieces of legislation they administer with a single national regulator and one set of nationwide laws.

The legislation will see the Australian Maritime Safety Authority (AMSA) become the national regulator of all commercial vessels in Australian waters.

The Federal Government will also aim to lift safety standards by introducing a streamlined national system.

The legislation now before the Parliament will eliminate the artificial sea borders which have existed between the states since Federation.  From 1 January 2013, the Australian Maritime Safety Authority (AMSA) will become the national regulator of all commercial vessels, not just those involved in international trade.

The Australian Logistics Council (ALC) has welcomed the move by the Federal Government.

“These maritime safety laws are part of a broader transport reform package that involves establishing single national regulators for rail safety, maritime safety and heavy vehicles,” ALC Managing Director Michael Kilgariff said. 

The $10.2 million funding requirement was provided in the Federal Budget and forms part of the government’s amove to reverse the decline of Australia’s domestic shipping industry. 

The United Nations Commission on the Limits of the Continental Shelf has confirmed Australia’s limits of 11 million square kilometres of continental shelf, providing clarity over areas which Australia has exclusive rights.

The Federal Government has welcomed the Seas and Submerged Lands (Limits of Continental Shelf Proclamation 2012, with Minister for Resources and Energy, Martin Ferguson, saying it has ramifications for the country’s energy sector.

“Australia has the exclusive right to explore and utilise the resources of the seabed within our continental shelf, including oil, gas, minerals and biological resources,” Mr Ferguson said.

“The proclamation includes large areas of continental shelf beyond 200 nautical miles which are based on the 2008 recommendations of the United Nations Commission on the Limits of the Continental Shelf.”

The proclamation is the culmination of nearly twenty years of persistent scientific, legal and diplomatic work by government agencies, particularly Geoscience Australia, the Department of Foreign Affairs and Trade and the Attorney-General’s Department.

“The proclamation demonstrates the practical benefits of Australia’s international engagement in law of the sea matters and with the United Nations and its agencies,” Senator Carr said.

“Australia has also provided technical and financial assistance to help relevant states, including our Pacific Island neighbours, benefit from confirmation of their maritime jurisdiction.”

The Proclamation was made on 24 May 2012.

A copy of the map can be found at http://www.attorneygeneral.gov.au/Media-releases/PublishingImages/ECSmap.jpg

The World Wide fond for Nature (WWF) has hit out at the New Zealand Government, saying it is continuing 20 years of environmental neglect and broken promises.

Contained in its Beyond Rio report, the WWF has accused the New Zealand Government reneging on its pledges made at the Earth Summit 20 years ago.

“Aotearoa, the land of the long white cloud, is now a land of polluted rivers and lakes, rising greenhouse gas emissions, pressured marine ecosystems and disappearing bird and mammal species,” WWF-New Zealand’s Executive Director Chris Howe said.

“While it is important for the government to constructively engage in the upcoming summit, we should not lose sight of the many commitments that already exist. If New Zealand’s political leaders had made good on the promises made back in 1992, then we wouldn’t be faced with such a battle to turn things around. ”

The key findings of the report include:

• Increased pollution in our lakes and rivers, including 43 per cent of monitored lakes in NZ now classed as polluted and an estimated 18,000-34,000 people annually catching waterborne diseases.
• More than 60 per cent of native freshwater fish as well as the only freshwater crayfish and mussel species are now threatened with extinction.
• Seven of New Zealand’s ten official ‘indicator species’ for measuring biodiversity status are threatened. The Kokako, for example, has suffered a 90 per cent contraction in its range since the 1970s.
• Iconic species such as Maui’s dolphins and NZ sea lions are listed as ‘nationally critical’. Only an estimated 55 Maui’s over the age of one year remain and NZ sea lion pup numbers have halved over the past 12 years at their main breeding area in the Auckland Islands.
• Almost two-thirds of New Zealand’s seabird species are listed as threatened with extinction. The main threats to seabirds are predation by introduced mammals, fishing methods and human disturbance.
• New Zealand’s gross emissions have risen by 20% since 1992, due to increased pollution from energy, transport, agriculture and industry sectors. Even with our weakened Emissions Trading Scheme, emissions are projected to continue to rise.

The report can be found here (.pdf)

Australian workers waste one third of their time at work, costing their employees an estimated loss of about $109 billion according to Ernst & Young’s Productivity Pulse survey.

According to the survey, which canvassed almost 2,500 employees, only fifty-eight per cent of the working day contributes any “real value” to their employer.

24 per cent of the day is spent on networking, personal development and other ‘organisational curricular activities’ that are important to both employer and employee.

However, the survey concluded that 18 per cent of the day is spent on work that wastes time and effort.

"Workers that feel insecure about their roles or are unsatisfied with their workplace have fallen further down the productivity scale as a result of the current slowdown," Ernst and Young Oceania Advisory leader Neil Plumridge said.

However, the dichotomy between the productive and the feckless goes beyond the workplace, with members of the more efficient worker group taking, on average, 43 minutes less time in getting to work.

"This means that the top group has more opportunity for their personal life and activities such as helping kids with their homework, going to the gym, or even cooking the evening meal," Mr Plumridge said.

The survey found that people management issues were the biggest single impact (54 per cent) on productivity, while organisational structure accounted for 23 per cent of the lost productivity. Innovation was identified as a factor, accounting for 15 per cent of the lost productivity. 

The Federal Government has announced it will establish a community advisory committee to assist in protecting the Ningaloo reef.

Federal Environment Minister Tony Burke announced the formation of the committee while attending the one-year anniversary of the listing of the Ningaloo Coast’s World Heritage Listing.

“The Ningaloo Coast World Heritage Advisory committee will allow community members, including traditional owners, to play a role in the protection and stewardship of the Ningaloo Coast,” Mr Burke said.

“With the support of a World Heritage project officer, the advisory committee will play a pivotal role in protecting the outstanding universal value of the Ningaloo Coast that led to its inscription on the World Heritage List.”

In addition to funding for the advisory committee, a further $496,000 has been allocated towards feral animal control at Ningaloo to reduce threats posed to threatened species and habitats.

The Murray-Darling Basin Authority (MDBA) has released changes to its Basin Plan to ministers as part of the Authority’s process of developing the finalised plan.

The MDBA also released a report detailing the changes that have been made to the draft based on submissions received during the consultation period.

"Over the past 12 months we have been consulting communities and representative groups on the development of a Basin Plan," said MDBA Chair Craig Knowles.

"Since the release of the draft in November, we have continued to consider and test ideas and information to revise the draft plan that we are now presenting to Basin governments."

This version of the plan, titled the 'Proposed Basin Plan – A Revised Draft', now enters its ministerial and parliamentary process. It goes to all Basin water ministers for consideration for a maximum of six weeks, as stipulated by the Water Act. Following this, the Basin Plan will be given to the Federal Water Minister.

The MDBA has stood by the planned 2,750 GL/y as a long term average for its environmental flow.

The revised plan has proven expectedly unpopular with the respective Murray-Darling State Governments, with Victorian Water Minister saying the plan is a ‘death warrant’ for the agricultural sector in the state.

“"The socio-economic report outlines the industries that will be severely impacted upon: northern Victoria's dairy farmers, Sunraysia and Riverland horticulturalists, cotton growers in the Lower Ballonee and Murrumbidgee and New South Wales Murray rice growers,” Mr Walsh said.

Queensland Minister for Natural Resources and Mines Andrew Cripps echoed Mr Walsh’s concerns, saying none of Queensland’s concerns were addressed in the revision.

“The Queensland Government raised a number of significant and legitimate concerns in its submission to the original draft and unfortunately none of those appear to have been addressed in this revised Plan,” Mr Cripps said. 

South Australian Premier, Jay Weathrill, described the revised plan as ‘unacceptable’, and that it does not provide enough for environmental flows.

“The result is a revised plan which officially sanctions the over-allocation of water that has been going on for more than 40 years, damaging the Murray and threatening to destroy it,” Mr Weatherill said in a statement. 

More information can be found here

The Senate Standing Committees on Economics is to conduct an inquiry into the Clean Energy Legislation Amendment Bill 2012 and related bills.

The bills propose to amend the Clean Energy Act 2011 and the Fuel Tax Act 2006 to reflect changes in coverage arrangements for gaseous fuels. The bills also propose to make a number of minor and technical amendments relating to the Carbon Farming Initiative and the Australian National Registry of Emissions Units, and to enable information sharing between relevant agencies and the proposed Clean Energy Finance Corporation.

Submissions should be received by 5 June 2012. The reporting date is 18 June 2012.

More information is here.

The Western Australian Government has officially opened Fortescue Metals Group’s (FMG) new iron ore berth in Port Hedland.

Berth AP3 is the first of two new berths being constructed at the town’s Herb Elliot Port, which will have a combined 120 million tonne export capacity by 2013.

State Minister for Mines and Petroleum Norman Moore said iron ore accounted for record sales of $62.8billion in 2011, a 29 per cent increase on the previous year, representing 59 per cent of WA’s total resources sales in 2011.

The Western Australian Government has announced $5.2 million over four years to build the state’s international profile in science through the support of WA’s Nobel Laureates and the attraction of new research fellows.

Science and Innovation Minister John Day said the government was focused on building the state’s research profile internationally and building a strong knowledge economy.

“A strong foundation of knowledge and expertise is paramount to the continued growth and development of the State’s economy,” he said.

“This funding will be used to attract distinguished researchers to carry out research of strategic importance to the State through the WA Research Fellowships Program.

“The applicants will join high achievers such as Professor Shaun Collin, who was awarded a Fellowship in 2009 and moved to Perth from Queensland. Since his arrival, Professor Collin has enhanced the State’s research profile internationally in the areas of neuroscience, marine biology, ecology, deep-sea biology and sensory neurobiology.”

The Minister said the funding would also support the activities of WA’s Nobel Laureates, Dr Robin Warren and Professor Barry Marshall, to promote the State’s existing world-class research and innovation capabilities.

The Queensland Government has invited the plumbing industry to provide feedback on the proposed regulation amendments to reduce red tape in the industry.

State  Housing and Public Works Minister Bruce Flegg said the proposed changes to the Plumbing and Drainage Act 2002 would increase the scope of ‘notifiable works’ that can be undertaken without Council approval.

“Following the passage of amendments through Parliament in February, Building Codes Queensland has now released the draft tables outlining the proposed notifiable, minor and unregulated categories of work for consultation,” Dr Flegg said.

“Notifiable work will apply to most work on existing buildings, including extensions and additions.

“For Queenslanders, this means everyday plumbing work can be self-certified by the plumber, eliminating the need for local government permits which can be costly and cause delays.

“Work by plumbers and drainers will still be audited by the Plumbing Industry Council and local governments to ensure compliance and health and safety standards remain high.”

Dr Flegg said the proposed changes would create a more efficient process, saving time and money for local governments.

“By reducing the amount of routine work that must receive approval before commencement, these reforms will allow local governments to more precisely target their inspection programs towards high-risk areas and may lead to faster processing of applications.”

The industry has until Friday 22 June 2012 to make submissions.

The draft tables outlining the proposed notifiable, minor and unregulated categories of work can be viewed at:http://www.dsdip.qld.gov.au/plumbing/proposed-new-schedules-for-notifiable-work.html.

Questions and comments on the draft schedules can be submitted by:

·Post to PO Box 15009 City East QLD 4002

·By email to This email address is being protected from spambots. You need JavaScript enabled to view it.

·Online through the Get Involved website at www.getinvolved.qld.gov.au

For further questions about notifiable work, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 1800 264 585.

The HIA-Commonwealth Bank Housing Affordability Index has recorded the fifth straight quarter of improvement in its March 2012 report. The Index improved by 6.4 per cent in the March quarter, finishing 11.0 per cent higher over the year.

In the March quarter we observed a modest increase in earnings, a modest decline in lending rates and a softening in the median dwelling price, so all factors moved in a direction which improved housing affordability,” said HIA’s Senior Economist, Andrew Harvey.

“Cuts to the RBA cash rate totalling 50 basis points in late 2011  should have provided a much larger boost to affordability in the quarter but the impact was eroded as lenders widened the margin between mortgage rates and the cash rate. After accounting for the wider margins, the average mortgage rate during the March quarter was only 13 basis points lower than in the December quarter.”

The cut to the official cash rate in May is expected to see further improvement in housing affordability.

Sydney and Perth both recorded deteriorating affordability in the March quarter of 2012 with their indices falling by 1.0 per cent and 1.8 per cent respectively. Affordability improved in the remainder of Australia’s capital cities with Melbourne up by 7.3 per cent, Brisbane up by 6.3 per cent, Adelaide up by 7.3 per cent, Hobart up by 3.0 per cent and Canberra up by 7.1 per cent.

Outside of the capital cities, affordability improved in all states with the exception of Victoria which was unchanged. Affordability in non-metropolitan New South Wales was up by 2.4 per cent, Queensland was up by 4.5 per cent, South Australia was up by 6.4 per cent, Western Australia was up by 8.7 per cent and Tasmania was up by 0.4 per cent.

Federal Minister for Workplace Relations Bill Shorten has convened the 114^th meeting of the National Workplace Relations Consultative Council (NWRCC).

The council was asked by Mr Shorten to consider a range of proposals to amened the Fair Work (Registered Organisations) Act 2009 to improve financial accountability and transparency in registered organisations and to increase penalties to improve Fair Work Australia’s (FWA) investigation process.

The council considered the following suggestions made by Mr Shorten:

• provide a greater degree of disclosure of remuneration, expenditure and pecuniary interests of officials;
• enhance the capacity of Fair Work Australia to make inquiries and investigate suspected breaches of the Act;
• increase a range of civil penalties currently imposed under the Act; and
• increase awareness of financial governance and accounting obligations.

 The Council has given in principle support to the proposals put forward by Minister Shorten and supports the passage of amendments reflecting these proposals in the Parliament, subject to consultation on the final detail over coming days.

Prime Minister Julia Gillard and Workplace Relations Minister Bill Shorten have announced the Federal Government will conduct a review into bullying in the workplace.

The review will aim to investigate the nature, causes and extent of workplace bullying in the country while considering proposals to prevent bullying cultures developing in the workplace while helping those that have been the victim of workplace bullying.

The announcement comes after the Productivity Commission estimated that workplace bullying sheared off between $6 billion and $36 billion from the economy.

The terms of reference of the review are the following:

• the prevalence of workplace bullying in Australia and the experience of victims of workplace bullying;
• the role of workplace cultures in preventing and responding to bullying and the capacity for workplace-based policies and procedures to influence the incidence and seriousness of workplace bullying;
• the adequacy of existing education and support services to prevent and respond to workplace bullying and whether there are further opportunities to raise awareness of workplace bullying such as community forums;
• whether the scope to improve coordination between governments, regulators, health service providers and other stakeholders to address and prevent workplace bullying;
• whether there are regulatory, administrative or cross-jurisdictional and international legal and policy gaps that should be addressed in the interests of enhancing protection against and providing an early response to workplace bullying, including through appropriate complaint mechanisms;
• whether the existing regulatory frameworks provide a sufficient deterrent against workplace bullying;
• the most appropriate ways of ensuring bullying culture or behaviours are not transferred from one workplace to another; and
• possible improvements to the national evidence base on workplace bullying.

The Review will be undertaken by the House Standing Committee on Education and Employment, comprising members from both major parties. It will consult extensively with the community and will report by 30 November 2012.

Engineering services company Hastie Group has announced the appointment of Voluntary Administrators after it was revealed last week that the company had found accounting irregularities to the value of an estimated $20 million. The impending collapse of the company casts doubt over the 2,000 people employed in Victoria and New South Wales.

A syndicate of banks led by the ANZ and including the Commonwealth Bank, National Australia Bank, Westpac, Bank of Scotland, Ulster Bank, HSBC Australia and HSBC Middle East, is owed $500 million, thought to be split equally between debt and equity.

The company announced irregularities in its Services Group – Northern Region Business, and is expected to shave $20 million off the company’s final profits. After preliminary investigations, the company found the irregularities date from the 2009 financial year and are the result of deliberate actions of a current employee.

The irregularities have compounded existing issues with debt with the company’s banks, raising concerns that the company’s $540 million debt could be forced to be written down in the event of the company’s collapse.

The company has referred the matter to the Australian Securities and Investments Commission (ASIC).

The Directors of Hastie Group have appointed Ian Carson, David McEvoy and Craig Crosbie of PB Advisory as administrators of the company and its 44 subsidiaries.

Hastie has operations in Australia, New Zealand, the UK and Ireland, and the Middle East, employing around 7000 people in total.