Industry News

The South Australian Government has outlined $3.25 million in spending aimed at breaking down barriers that prevent adults from moving to higher level training and improving their prospects of finding a job.

The Adult Community Education (ACE) initiative will see 7433 training places offered by 60 community-based, not-for-profit training providers.

“The ACE sector is an important starting point for people who may consider vocational education and training and university study to be initially out of their reach,” State Employment, Higher Education and Skills Minister Tom Kenyon said.

“The successful applicants of this latest round of funding though the Foundations Skills Grants Program will provide accredited and non-accredited training, in partnership with registered training providers, including TAFE SA, so adults can improve their skills leading to better prospects of further training and finding a job.”

The project forms part of the State’s ongoing Skills for All initiative, which aims to revitalise the state’s vocational education and training sectors.

Training programs which will be funded through the ACE program include:

• Advancing Whyalla – a project to help adults improve their English oral, reading and writing skills, provides assistance in using the internet, applying for jobs and time management.
• ac.care Mount Gambier - a project including Pathways to Employment and IT Skills for Employment courses to help people who may be dealing with issues of poverty, unemployment, substance addiction and recovery, homelessness and mental health.
• Eyre Futures Incorporated - The Ready Steady Job Ready program supports young people, aged 17-25 to develop literacy, numeracy and digital literacy skills to a point where they can successfully look for work or progress to Certificate II level training.
• Renmark Paringa Council provides basic keyboarding skills and teaches learners a understanding of how to use the internet and foundation level computer skills.

The South Australian Government has announced Adjunct Professor don Bursill has been reappointed as the state’s Chief Scientist and Co-Chair of the Premier’s Science and Industry Council until December 2014.

State Science and Information Economy Minister, Tom Kenyon, said Professor Bursill’s reappointment reflected the strong culture and commitment to science in South Australia.

“High quality science, technology, engineering and mathematics (STEM) education and research are critical to building a strong foundation for our economy across several of our main growth sectors,” Mr Kenyon said.

“Professor Bursill is a leader in the field of water management and quality and he has been at the forefront of the most important developments and decisions regarding potable water in Australia for the past 40 years.

The Productivity Commission has found room for improvement in the country’s default superannuation fund arrangements in modern awards, with a draft report saying more should be done to promote the best interest of members.

The Default Superannuation Funds in Modern Awards draft report found more should be done to increase transparency in such organisations.

“Australian employees would benefit from a default superannuation fund selection process that is contestable, transparent and provides for the regular reassessment of the most appropriate funds to be listed in awards,” Commission Deputy Chairman Mike Woods said.

The Commission’s major preliminary finding is that there is no case of using prescriptive criteria for selecting and reassessing default superannuation funds. The Commission also found that the two most important factors in considering super arrangements is the need to properly assess the appropriateness of each MySuper product’s investment return and risk profile, and each fund’s expected ability to deliver on that objective.

Other factors investigated in the draft report include the appropriateness of the fees charged by the MySuper product, the mechanisms put in place by fund trustees to deal with conflicts of interest and the likelihood of members being switched to higher cost divisions of a fund (‘flipping’).

While the Commission noted the differences in costs in management of separate super funds, it urged more should be done to increase the administrative efficiency of the fund to minimise follow on costs to members. The Commission also noted that employers should be able to choose a fund that is not listed as an award, provided they can demonstrate that their employees are no worse off than if the employer chose an award based product.

Written responses to the draft report are required by Friday 3 August 2012.

More information is here.

The Sydney Opera House Trust has appointed Louise Herron as Chief Executive, Sydney Opera House commencing 6 August 2012.

Ms Herron has been Chair of the Australia Council’s Major Performing Arts Board since June last year and chaired Belvoir St Theatre for ten years. Her background is in law and corporate advice.

Trust Chairman, Kim Williams, congratulated Louise on her appointment, which followed an extensive local and international recruitment process by executive search firm Russell Reynolds Associates.

“Louise brings significant and diverse business experience and a demonstrated passion for, and leadership in, the arts. Her skills will be a perfect complement to the existing executive team.”

Ms Herron co-founded and is an Executive Director of Ironbark Corporate Advisory, a boutique corporate advisory firm specialising in restructures, mergers and acquisitions and private equity transactions. Previously she consulted to Carnegie Wylie and Investec Bank Australia. Louise started her professional career as a lawyer and was a partner at Minter Ellison specialising in corporate and technology related transactions. Ms Herron is also a Trustee of Sydney Grammar School and Director of Australian Ethical Investments Limited and while Chair of Belvoir, served two terms as a director of the Australian Major Performing Arts Group (AMPAG).

Upon taking up her role as Sydney Opera House CEO, Louise will relinquish all her current roles but will remain a Trustee of Sydney Grammar School.

Ms Herron will be the first woman appointed to the position of Chief Executive of Sydney Opera House since it opened in 1973 (Sydney Opera House Trustee Sue Nattrass was acting CEO for several months in 2007).

The CEO of Cairns Regional Council, Lyn Russell, has been dismissed and will  receive a payout reported to be worth around $500,000, including 12 months’ pay and entitlements.

In a statement the Council said  arrangements had been agreed to end Ms Russell’s contract effective close of business Friday, June 29. 

Mayor Bob Manning said the termination of the CEO’s contract was amicable and that Council wished Ms Russell the best in her future endeavours.

Ms Russell joined Cairns Regional Council as CEO in November 2009 and was formerly General Manager at Wagga Wagga City Council, and CEO of Thuringowa City Council in Townsville for the ten years prior to Council amalgamations in 2008. During her career she has been awarded Local Government Manager of the Year in both NSW and Queensland.

General Manager of Planning and Environment Peter Tabulo will be acting CEO while Council embarks on a recruitment program to attract a replacement for Ms Russell.

It is the second time in three years that the Cairns Regional Council has terminated a CEO, with Noel Briggs believed to have been paid a similar severance in 2009.

The Federal Government has passed tax reform legislation through Parliament that will  strengthen the director penalty regime and protects workers' superannuation entitlements and amendments to the taxation of financial arrangements and consolidation regimes.

The Bill will strengthen directors' obligations to arrange for their companies to meet Pay As You Go (PAYG) withholding and superannuation obligations and help counter phoenix activity.

"This legislation makes it clear that directors have an obligation to ensure that provision is made for the ongoing payment of workers' superannuation," Assistant Treasurer David Bradbury said.

"It also ensures that fraudulent directors who use phoenix companies to try and avoid their debts can be held personally liable for their PAYG withholding and superannuation obligations."

The Federal Government has released for public comment a Green Paper for the National Career Development Strategy  that aims to help Australians build more productive and rewarding careers.

The Minister for Youth Peter Garrett said the Green Paper had been developed following extensive consultation with state and territory governments, universities, the vocational education and training sector, career development practitioners and the community.

“We are now seeking further input from the community on the Green Paper before finalising the National Career Development Strategy, enabling us to support more Australians to build careers which are not just meaningful, but which support our economy.”

Mr Garrett said the nation’s future prosperity relies on matching the skills and career aspirations of Australians with the needs of businesses.

“This means we need to act to ensure that as many Australians as possible pursue careers in high-skill, high paying jobs,” he said.

“This Green Paper, part of the Government’s National Partnership on Youth Attainment and Transitions, outlines how a National Career Development Strategy will help in the provision of quality and equitable access to career support for all Australians.”

Mr Garrett said the success  of the Green Paper will depend on active involvement from state and territory governments, employers and the career development industry.”

Individuals and organisations are invited to comment on the National Career Development Strategy Green Paper via an online submission process. 

For more information and to make a submission to the Green Paper, go to: www.deewr.gov.au/schooling/careersandtransitions/careerdevelopment/Pages/default.aspx

The Australian Securities and Investments Commission has announced the next phase of its consultation with the financial advice industry regarding its proposal to implement a national examination for financial advisors is now open.

AISC will hold discussions with industry participants about the potential for setting a national self-regulatory organisation (SRO) to develop and administer the exam.

"It is important that the national exam is driven by, and developed with, industry"’ ASIC Chairman Greg Medcraft said.

"Continuing our consultative approach to improving the quality of advice provided to retail investors is a priority."

ASIC has announced it would have a strong relationship with any SRO because of the commission's overall responsibility for the standards in the retail advice sector and would assist by contributing research and guidance.

"Financial investors and consumers need to be confident and informed when planning for their future and having a national exam for financial advisers is an important part of making this happen," Mr Medcraft said.

Business Events Sydney has announced the appointment of Gabrielle Trainor as the company's new independent Director on the Board.

Ms Trainor is a non-executive director and a former journalist, lawyer and public sector executive. She brings to the Board extensive experience as a director of a range of public, private and not-for-profit entities including government businesses and organisations in the finance, hospitality, sports and arts sectors.

“Gabrielle’s wealth of experience spans many of the sectors that BESydney touches direct and indirectly. Her stellar career credentials, her industry connections and expert insights will be a valuable addition to the BESydney board. We look forward to Gabrielle working with us,” said Col Hughes, BESydney Chairman.

The Sydney Opera House Trust has announced Louise Herron as the Trust's new Chief Executive Officer, commencing 6 August.

Ms Herron will take the position after chairing the Australia Council's Major Performing Arts Board and chairing the Belvoir St Threatre for a decade. Her selection follows an extensive local and international recruitment process.

“Louise brings significant and diverse business experience and a demonstrated passion for, and leadership in, the arts. Her skills will be a perfect complement to the existing executive team.

“She is well known to our resident companies, through her recent role as Chair of the Major Performing Arts Board. We couldn’t be more pleased with this appointment," Trust Chairman Kim Williams said.

State Minister for the Arts, George Souris, also congratulated Louise Herron on her appointment.

“I welcome Louise and look forward to her stewardship of this iconic building and one of the world’s great institutions, at a time when Sydney Opera House is more popular than ever,” Mr Souris said.

Commenting on her appointment, Ms Herron said: ‘It is an honour to be entrusted with running the Sydney Opera House, a building recognised by UNESCO as a masterpiece of human creative genius.

“Sydney Opera House has built an enviable reputation as a cultural and tourism destination. We will be working to continue to improve Sydney Opera House, both as a building and for the experiences it offers, particularly at this time when new attendances are increasing dramatically.”

An OECD report into the effectiveness of the Federal Government's My School initiative has helped to provide greater transparency in the country's school system.

The Delivering School Transparency in Australia: National reporting through My School found that the policy had significantly achieved solid progress in achieving its state goals.

“The OECD monograph sets out the rationale behind My School, the various challenges the Government faced during its development, and how these challenges were resolved. The report provides examples of sound policy formation and strong political leadership which other countries may choose to learn from,” School Education Minister Peter Garrett said.

The report found that as a result of My School, we now have nationally consistent data that lets us analyse policy options and better target our funding and resources.”

International research—including the OECD Programme for International Student Assessment (PISA)—shows clear accountability for school results encourages better results for school leaders, teachers and students and lets parents make informed decisions about their child’s education.

Key observations of the OECD report include:

• School transparency has placed the whole community in the same position as education officials in having access to new national data.
• Policy details were based on evidence
• The Government clearly articulated the rationale for making nationally comparable school information publicly available, and promoted greater flexibility for education expenditure in return for more transparency and accountability.
• Before NAPLAN and My School there was no nationally comparable data or single source of data on all schools on which to base policy reforms and the equitable distribution of funding.

The full report can be found here 

Investment group Perpetual has announced plans to significantly cut its executive remuneration deals, significantly restructure the company and to put a halt to ongoing losses.

Perpetual chairman Peter Scott is reportedly having his pay cut by as much as 40 per cent, while the company's non-executive directors will have their pay slashed by as much as 25 per cent. The announcements come as the company outlined a $50 million investment spend to achieve $50 million in savings per year by 2014.

The announcements form part of the company's Transformation 2015 strategy, aimed at reshaping the company as a 'large independent boutique wealth manager .'

"Over the next three years, Perpetual will embark on a transformation strategy that will significantly simplify its corporate structure, refocus its operational activities and capture new opportunities for growth," Perpetual CEO Geoff Lloyd said.

The company's full ASX statement can be found here (.pdf)

Overall customer satisfaction with the country’s big four banks has declined in May, down to an average 76.2 per cent.

The ANZ recorded the biggest drop, with customer satisfaction declining 1.7 per cent, while Westpac recorded a 0.4 per cent contraction. The NAB experienced a 0.4 per cent bump in approval ratings, while the CBA enjoyed a 0.1 per cent increase.

Roy Morgan found that ANZ’s drop in satisfaction was driven 2.5 per cent fall in satisfaction of their home loan customers, bringing the overall satisfaction with the bank to 73.8 per cent.

The NAB has retained its position as the leader of the big four in terms of satisfaction, recording a steady 78.1 per cent, having continued to show strong improvement (5.8 per cent) over the last 12 months.

The CBA has also continued to improve, recording 77.3 per cent satisfaction with its customers. Westpac, with satisfaction of 74.6%, has held relatively steady over the last 12 months.

Norman Morris, Industry Communications Director at Roy Morgan Research, said the results show increased potential for smaller banks to make bigger inroads in the market.

“With the govt promising to make it easier for people to switch banks starting 1 July, it will be interesting to see if the alternatives to the big four (including Building Societies and Credit Unions) can capitalise on their clear leadership in customer satisfaction,” Mr Morris said.

The Australian Institute of Company Directors has announced a partnership with the Federal Government to deliver a second round of its Board Diversity Scholarship program, which is aimed at increasing the representation of women on Australian boards.

The Program will award 70 scholarships to high performing women over the next two years across a range of industries, giving them the opportunity to attend the AICD’s Company Directors Course or Mastering the Boardroom program.

Assisted by $225,000 in funding from the Federal Government, matched by the AICD, scholar recipients will receive a 12 month membership of the Institute.

“The business case for a diverse board is irrefutable, with many studies showing that a diverse board equals better business outcomes. This program is a practical way to help achieve greater diversity on boards by providing talented women with the knowledge and skills they need to help further their directorships careers,” said John Colvin, Chief Executive and Managing Director, Australian Institute of Company Directors.

“Nearly 2000 women applied for this scholarship when the program was first announced in 2010 and we have seen some terrific achievements by our previous scholarship recipients,” said Mr Colvin.

According to real-time statistics compiled by the Australian Institute of Company Directors, women currently hold 14.3 per cent of directorships on the ASX 200, compared to 8.3 per cent in 2010.  Women now hold almost 20 per cent of directorships on ASX 50 and ASX 20 boards.

“While we continuously track the ASX 200 as an indicator of gender diversity, we are aware that increasing the representation of women on boards must extend well beyond our top-listed Australian companies and we must show continued commitment to keep seeing results,” said Mr Colvin.

The Australian Bureau of Statistics (ABS) has tracked a continual downward trend in job vacancies in the May quarter, with the bureau finding vacancies had fallen by 6.1 per cent in May compared to the same time last year.

The ABS found that job vacencies had decreased 2.6 per cent from the February quarter. The number of vacencies in the private sector was 158,600, while public sector was at 16,100.

The ABS statistics can be found here

New research has shed light on the high risk of fractures, falls, and osteoporosis among epilepsy patients using antiepileptic drugs with most patients unaware of the risks associated with taking the drugs.

The study led by the University of Melbourne and published in the Neurology journal, found that people taking antiepileptic drugs are up to four times more likely to suffer spine, collarbone and ankle fractures and are more likely to have been diagnosed with osteoporosis.

The study also revealed that these patients are more than four times as likely as non-users of antiepileptic drugs to have been diagnosed with osteoporosis.

In addition, treatment affected balance with results showing almost double the falls rate in female patients taking the medication compared with non-users.

Chief Investigator, Professor John Wark from the University of Melbourne’s Department of Medicine at the Royal Melbourne Hospital said this research revealed new information critical to understanding the higher risk for fractures and falls in epilepsy patients taking antiepileptic medication.

“We believe patients need to be offered better information to help them to avoid these risks and prevent injury,” he said.

More than 70 percent of epilepsy patients who participated in the study were unaware of the increased risk of fractures, decreased bone mineral density and falls associated with taking antiepileptic medications.

“No published studies have explored epilepsy patients’ awareness of the effects of AEDs on bone health, fracture risk and falls.  This study indicates that awareness of these issues is poor, despite our study population attending specialist epilepsy clinics at a centre with a major interest in this area,” said Professor Wark.

“Most patients indicated they would like to be better informed about these issues, suggesting that more effective education strategies are warranted and would be well-received.”

“Epilepsy patients should be assessed regularly for their history of falls and fractures for appropriate management strategies to be offered.”

The study compared 150 drug users with 506 non-users.  All drug users were epilepsy outpatients at the Royal Melbourne Hospital, over 15 years old and had been taking AEDs for a minimum of three months.

Collaborators include La Trobe University, the National Ageing Research Institute, and the University of Malaya, Malaysia.

In related research, participants are being sought for two new studies, one trialing new osteoporosis therapies for antiepileptic treatment-associated bone loss, and the other examining the effects of these treatments on young people’s bone health by studying five – 18 year-old twins and siblings where one is receiving therapy.

More information on these studies can be obtained from Alicia or Lauren at 03 8344 6882.

The Minister for Resources and Energy, Martin Ferguson has announced the final board appointments and the chief executive officer to the Australian Renewable Energy Agency (ARENA).

ARENA will commence on 1 July 2012 and consolidate $3.2 billion in funding to support the research, development and deployment of renewable energy technology in Australia.

Dr Jane Sargison, Ms Betsy Donaghey, Ms Judith Smith and Mr Mark Twidell will be appointed as inaugural ARENA board members.

The board members join Mr Greg Bourne (Chair), Dr Brian Spalding and ex-officio Mr Drew Clarke who were appointed on 9 May.

Mr Ivor Frischknecht, currently executive director of the Australian Solar Institute, has been appointed as the agency’s inaugural chief executive officer, taking  effect on 6 August 2012.

Mr Ferguson said the board will oversee ARENA’s delivery of project funding; develop skills in the renewable energy sector, and promote information sharing and collaboration with state and territory governments and Australian and international institutions.

Dr Sargison was Engineers Australia’s National Professional Engineer of the Year in 2011 and brings experience and a strong background in developing renewable energy technologies.

Ms Smith brings long-standing business investment, finance and corporate experience as head of private equity at Industry Funds Management.

Ms Donaghey has an extensive background in strategic planning, general management and business analysis with senior roles at Woodside Petroleum and BHP Billiton.

Mr Twidell and has more than 20 years’ experience in the solar power industry.

ARENA replaces the Australian Centre for Renewable Energy (ACRE).

The ACRE Board was responsible for assessing and making independent recommendations for funding renewable energy projects, and for translating these policy outcomes into strategic policy advice on developing renewable energy.

“As the only body covering the full range of renewable energy technologies in Australia, ACRE has re-examined the way that Governments think about supporting renewable energy technology in Australia, and how the market can be used to more effectively leverage renewable energy funding,” Mr Ferguson said.

“From 1 July, ACRE’s initiatives will be incorporated into and administered by ARENA, with the Australian Solar Institute following from 1 January 2013.”

An interim general funding strategy will be released by the ARENA Board shortly which will be formalised in the second half of the year following public consultation. The interim strategy will allow the Board to maintain momentum in the renewable energy sector, whilst continuing to administer existing ACRE programs and projects; consider funding shortlisted for Solar Flagships;  progress the Emerging Renewables Program; and select eligible applicants under the Advanced Biofuels Investment Readiness program.

More information can be accessed at http://www.ret.gov.au/energy/clean/arena/Pages/arena.aspx.

The Auditor General of Victoria, Des Pearson will chair the Advisory Board for La Trobe University’s Centre for Public Sector Governance, Accountability and Performance (CPSGAP). 

‘Our role will be to offer practitioner perspectives on the work of the Centre to assist researchers in identifying and refining research topics and facilitating researchers access to relevant information and practitioners,’ said Mr Pearson.

CPSGAP is a new research centre in the Faculty of Business, Economics and Law. The establishment of the Advisory Board will ensure that the Centre provides a forum for effective engagement between the faculty and various stakeholders across the public sector. 

‘This will ensure that the research conducted is both highly relevant and academically rigorous.  We are extremely fortunate to have such a distinguished group of Public Sector practitioners and policymakers to guide the activities of this new Centre,’ Professor Leigh Drake, Executive Dean of the Faculty Business, Economics and Law.

Other external members of the Advisory Board include:

• Mike Blake, Auditor-General, Tasmania
• Dean Yates, Deputy Secretary, Budget & Financial Management Division, Department of Treasury and Finance, Victoria
• Jeff Rosewarne, Secretary, Department of Primary Industries, Victoria
• Cheryl Batagol, Chair, EPA Victoria
• Claire Noone, Executive Director, Consumer Affairs Victoria
• Jo de Morton, Deputy Secretary, Government and Corporate Group, Department of Premier and Cabinet, Victoria
• Louise Hill, Deputy Secretary, Corporate Services, Department of Planning and Community Development, Victoria

The CPSGAP aims to:

• conduct and promote research into public sector related issues such as governance, accounting, accountability, sustainable management, value for money auditing, and performance management; 

• provide a forum for practitioners, academics, students, politicians and others to explore social, economic and political aspects of the public sector; and

• establish links with academics, practitioners and institutions, locally and internationally and enhance these networks to promote the Centre’s activities.

The centre will be formally launched with a public forum in September this year and membership is open to academics, researchers and practitioners in the public sector field. 

For more information visit www.latrobe.edu.au/cpsgap 

Overwork is significantly impacting the mental health and wellbeing of Australians, a Flinders University labour studies expert has warned.

Professor Sue Richardson, a Principal Research Fellow at the Flinders-based National Institute of Labour Studies, said overwork was an issue that must be taken “much more seriously”.

“We hear a lot about unemployment and underemployment but we don’t hear nearly enough about overemployment,” Professor Richardson said.

“There’s a strong language about how hard work and long hours are somehow morally superior but I think that conversation needs to be reconsidered,” she said.

“Instead of making it seem like it’s a macho commitment to the job we need to work on the language and the way we present it to reduce the pressures to work longer hours.”

Her comments come amid the findings of a four-year research project, funded through a $1.3 million National Health and Medical Research Council grant, which have revealed the impact of overwork on the mental health of Australia’s workforce.

Professor Richardson said a quarter of the 8,000 employees surveyed in the annual Household, Income and Labour Dynamics in Australia (HILDA) survey were working more hours than they wanted and, as a result, displayed “significantly” lower levels of mental health.

“We do have overtime but the issue arises when people don’t get paid for the extra hours they put in, and since longer hours are producing more stressed workers and reducing mental health, it suggests the labour market isn’t working well.

“Employers need to think very carefully about what they’re asking of their workers and whether it’s manageable in the time available.”

The research was part of a wider study, conducted in partnership with researchers from Flinders Southgate Institute and the University of Melbourne, to determine whether casual, contract and part-time employment were harmful for mental health.

Despite a growth in flexible work arrangements, with about 40 per cent of the Australian workforce employed in casual and part-time positions, Professor Richardson said the high level of protection for these workers in Australia meant there were no mental health ramifications.

In fact, she said many workers were choosing more flexible terms of employment to escape the burden of overwork and inflexible work hours.

“Australia also has a unique industrial relations regime which insists people on casual terms get paid more per hour than their full-time equivalents, and other employee benefits are the same whether you work full-time or part-time,” she said.

“Quite a few workers actually like casual work, partly because of the pay provisions and partly because it gives them greater control over their hours of work – for many workers it suits them to work part-time if they’ve got important other demands in life because they avoid the pressure.”

Fair Work Australia (FWA) has handed down the first Equal Remuneration Order, detailing how the social and community sector workers will receive their pay rises.

The rises will take effect over an eight year phase in period, with workers receiving equal installments to their pay over the period.

The order follows FWA's historic decision on 1 February this year ordering equal pay for social and community services workers in recognition of the tireless work they do for the Australian community.

The Federal Government has announced it remains committed to providing additional Commonwealth funding of more than $2 billion to pay its share of the wage increase granted by FWA.