Industry News

Construction firm Reed Constructions has announced it has been placed in voluntary administration after suffering heavy losses through some of its key contracts.

Administrator, Mr John Melluish, said he will be undertaking an urgent assessment of the financial position of the company and that a first meeting of creditors will be held on Wednesday, 27 June 2012.

“We will be doing everything we can to provide key stakeholders with clarity about the future of the company,” Mr Melluish said. “Reed Constructions suffered a number of losses on contracts largely arising from an inability to recover additional costs.”

Further information is available to employees, subcontractors and creditors of the company under the current matters section of Ferrier Hodgson’s website at www.ferrierhodgson.com

The Australia Local Government has released the 2012-13 State of the Regions Report, concluding that a new approach to regional development is urgently needed to address the growing inequality across the country’s regions.

Exacerbated by the mining boom and consequent patchwork economy, the report warns that many regions, particularly those in the non-mining states, risk being left behind as specific areas of the economy gain pace.

The report includes economic analysis of every local government area in Australia. It identifies Western Australia and its regions as clear winners from the boom, along with some of the regions in Queensland and News South Wales, and highlights negative impacts in other states and regions.

Leading Economist and co-author, Dr Peter Brain says a necessary first step to rethinking regional development to encourage equality across local government areas in Australia is the establishment of an independent Commission of Inquiry into the issue.

“If the Inquiry concluded that non-mining regions have been adversely impacted due to ineffective planning for regional development, we would have a catalyst to start the process for a productive redesign of regional planning in Australia,” Dr Brain said.

“During the past 30 years, there has been insufficient investment in regional development in Australia and the findings of the Report reinforce the need for a system of dedicated funds to flow into local infrastructure projects.

President of the Australian Local Government Association, Genia McCaffery says the Report explores new ways of thinking about regional development and investment to drive jobs, real wages and regional productivity.

“Local governments need to be involved in decisions concerning Commonwealth investment in regional infrastructure and development. This Report provides local governments with the facts and figures required for making decisions regarding their local industries and regional economies,” Mayor McCaffery said.

“This Report is essential reading for policy makers and politicians interested in regional development and equality."

Long serving Mayor of North Sydney and president of the Australian Local Government Association Gina McCaffery has announced she will be retiring from local government.

After four terms as Mayor of North Sydney Council, Cr McCaffery announced she will not be seeking re-election in September.

“It’s time,” she says of the decision.  “I’ve had a few weeks to think about what I want to do and I’ve realised I’m ready to move on to other things.”

“It’s been a difficult decision to make because I am passionate about local government and so much is still happening in the industry.  But I believe its time for a new mayor and a new era in our community.”

Cr McCaffery was elected President of ALGA in 2010 and is currently working on a range of issues including constitutional recognition of local government.  Cr McCaffery will also be standing down from the ALGA Presidency.

The Federal Government has announced its intention to assess the economic benefits of three key national building codes.

Master Builders Australia (MBA) welcomed the announcement, but has urged that any review of the existing codes must be conducted with an aim of improving productivity.

“The building and construction industry welcomes any reforms that will help boost productivity. For a long time we have called for the Building Code of Australia to be cost effective,” MBA CEO Wilhelm Harnisch said.

“As Reserve Bank Governor Glenn Stevens said at the PM’s Economic Forum this week, increasing productivity is the country’s biggest challenge.”

The MBA has been calling for a national, uniform code that can be readily enforced and will enhance national productivity.

 “Industry has expressed concern over the lack of transparency and governance, as well as a lack of consultation by regulators administering and developing building codes and regulations.

“Master Builders calls for the impact assessment to look at ways to increase transparency in the development of regulation and to reduce the red tape burden placed on builders.

“The building and construction industry contributes to close to eight per cent of the country’s economic output. Improved productivity will help the industry maintain its vital contribution to economic output and help shift it out of the ‘slow lane’ of the current two speed economy,” Mr Harnisch concluded.

The Housing Industry Association has welcomed the decision by the Victorian Government to expand Melbourne’s Urban Growth Boundary (UGB) for further housing development.

State Planning Minister Matthew Guy opened an additional 6,000 hectares of land to be brought into the UGB plan.

“The announcement of new land being earmarked for housing construction is good news for the Victorian community,” HIA Regional Executive Director Gil King said.

“This will assist in reducing pressure on housing prices, and providing more affordable housing– meaning first home buyers might be able to enter the market.”

“Today’s announcement by the Minister is also significant to the residential building industry as it demonstrates a willingness of the government to review the Urban Growth Boundary, which we argue should be occurring on a regular basis.”

“This welcome initiative is only part of the solution which, as the Minister has acknowledged, includes development opportunities for vacant land  in the inner suburbs  close to the CBD,” said Mr King

Improved indicators and a more systematic collection of performance information would enhance the assessment of rural research, development and extension (RD&E), according to a report released by the Australian Bureau of Agricultural Resource Economics and Sciences (ABARES). 

The report found that improved indicators and a more systematic collection of performance information would enhance the assessment of rural research, development and extension

ABARES acting Executive Director, Kim Ritman, said there is a need for more information on the performance of Australia’s rural RD&E system to support strategic decision-making and improve the ability to assess the system’s performance.

“Rural RD&E is vital for the ongoing growth and improvement in the productivity, profitability, competitiveness and sustainability of Australia’s agriculture, fisheries, forestry and food industries,” Dr Ritman said.

“National spending on primary industries RD&E is estimated to be around $1.5 billion per annum and this investment needs to be focused, and used efficiently and effectively.”

The Rural Research and Development Council proposed a preliminary framework for measuring and reporting rural RD&E system performance in its 2011 Investment Plan.

ABARES further developed the Council’s framework by assessing a wide variety of input, output and outcome indicators according to their availability and suitability as measures of system performance.

“There are considerable gaps in data availability, in particular, indicators of extension and adoption activity, as well as social outcomes,” Dr Ritman said.

“Going forward, there is scope to increase stakeholder participation in developing the framework for regular reporting of rural RD&E performance indicators.”

The report, Measuring and reporting trends relating to the performance of Australia’s rural RD&E system, is available here.

The Queensland Commission of Audit has published its Interim Report into the state of Queensland's finances, finding that the state's return to surplus within two years is increasingly unlikey.

The report presents a damming evaluation of the previous Government's fiscal management, lambasting its "lack of fiscal discipline", projecting that the state's debt is likely to balloon to over $100 billion by 2018-19 unless urgent action is taken to pay down debt. 

“Interest is now the fastest growing government expense in Queensland - not health, not education, not public transport - and it’s all due to Labor’s appalling reckless financial mismanagement," State Treasurer Tim Nicholls said.

Mr Nicholls said the Report outlined the need for major ‘fiscal repair’ to end the debilitating cycle of over-expenditure and crippling increases in debt and debt-servicing costs. 

“The Commission has recommended some very strong medicine which we all must take to get Queensland’s finances back in the black," Mr Nicholls said.

The Commission will deliver its Final Report in February next year, which Mr Nicholls says will chart a path for fiscal repair. 

The full report can be found here

The Australian National University is set to host a $100 million world-leading supercomputer that will enable data-intensive research into climate change, earch science and national water management.

Due for completion by 2013, the computer will be built and installed by Fujitsu Australia under an agreement signed with the ANU. The project is receiving $50 million in funding under the Australian Government's Super Science Initiative.

"It is a petascale computer - with a processing power equivalent to 56,000 desktop computers - and it will help ensure that we develop and retain highly-skilled technical specialists," Minister for Science and Research Senator Chris Evans said.

"Australian researchers, nation-wide, will be able to use the computer to construct the most accurate and detailed models of the Earth's climatic systems that are possible today.

"The supercomputer will help to fast track technical advances in computational research techniques."

The supercomputer forms a key component of the Federal Government's $901 ,million investment in research infrastructure through the Super Science Iniatitve.

The project is a partnership between the Australian Government, the ANU, CSIRO, the Bureau of Meteorology, Geoscience Australia and several leading universities.

Cloud computing specialist NextDC has announced the appointment of Craig Scroggie as the company's new Chief Executive Officer, replacing Bevan Slattery who will continue as Executive Director and Chairman.

Mr Scroggie has served as a non-executive Director since late 2010,  and is the outgoing Vice President and Managing Director of Symantec for the Pacific region. He has previously held senior leadership positions with Veritas Software, Computer Associates, EMC Corporation and Fujitsu Australia & New Zealand.

NEXTDC Founder and current CEO, Bevan Slattery said he was thrilled Mr Scroggie had accepted the role of CEO bolstering the management team and giving Mr Slattery more time to focus on data centre delivery and the next generation of the ONEDC® platform. 

 “Craig’s incredible enthusiasm, experience and extensive contacts throughout Australia and Asia will be of great benefit to our existing sales and development plans and ignite NEXTDC’s next phase of growth," Mr Slattery said.

“Having worked with Craig on the Board for the past 18 months, I have always been extremely impressed by his level of professionalism, energy and leadership – Craig is an impressive and inspiring professional. “I am looking forward to working with Craig to deliver our vision for NEXTDC and expanding into new areas of opportunity.”

The University of Sydney, the country's oldest tertiary institution, has released a major new strategy aimed at significantly improving rates of Aboriginal and Torres Strait Islander participation in higher education, research and engagement.

The Wingara Mura - Bunga Barrabugu, meaning "thinking path to make tomorrow", forms a core part of the university's overall Strategic Plan 2011-2015, aims to expand the Aboriginal education, research and engagement to become part of the core activity of the University.

Federal Minister for Tertiary Education, Senator Chris Evans, co-launched the strategy with NSW Governor Professor Marie Bashir.

"If we don't tap the potential of large sections of our population, we're underselling not only them and their capability, we're underselling the nation," Senator Evans said.  

Vice-Chancellor Dr Michael Spence saidthat much of the thinking behind the development of the strategy, which followed a major review of Indigenous Education commissioned by the University in 2008, had considered what it would mean to be an Australian university - in the sense of understanding Australia as a partnership between Aboriginal and Torres Strait Australians, and non-Aboriginal and Torres Strait Islander Australians.

"I wanted to work at a university that could help educate all Australians for that future," he said. "This is the moment that we celebrate together that we are launching something new in the life of this remarkable institution."

"The University's approach is not built on a discourse of disadvantage, it does not start by describing Aboriginal peoples as a collection of problems or deficits, but rather it recognises rights, builds capability and creates opportunity," Dr Spence said.

Targets in the strategy include accomplishing the following by 2015:

• doubling the number of Aboriginal and Torres Strait Islander people studying at Sydney from 206 undergraduates (as at March 2012)
• employing an Aboriginal and Torres Strait Islander academic staff complement of 75 (currently 15) and a general staff complement of 97 (currently 23)
• increasing the number of staff and students engaged in research in Aboriginal and Torres Strait Islander issues by at least 40 percent
• lifting funding from all sources for research in Aboriginal and Torres Strait Islander areas by at least 25 percent
• ensuring that all new and existing staff take part in cross-cultural training.

The complete version of the University's Aboriginal and Torres Strait Islander Integrated Strategy is available online at sydney.edu.au/indigenous

International computing giant IBM has published a report into the coming four decades of Australia's ICT future, finding that the sector will eventually grow to rival, and even surpass, the resources sector as the country transitions from a 'natural resources' economy to a 'developed resources' economy.

Written by Phil Ruthven, Founder and Chairman, IBISWorld, and commissioned by IBM, the report looks ahead of existing research to examine how Australia can harness the booming information technology sector worldwide.

The report reveals that the high-speed broadband enhanced information and technology sector will rapidly become the backbone of the country's economy, and that the rollout of the NBN infrastructure is as important and game-changing as the introduction of electricity or telephony was at the start of the 20th century.

The report predicts that 10 per cent of Australia’s 509 industries, accounting for 23 per cent of the nation’s revenue, will not function without this new utility. A further 23 per cent of industry revenue will use it to drive step-changes in their business. 15 industry classes are likely to demise if they do not reinvent themselves to embrace the digital future; and some may simply be unable to do so.

The report paints a more gloomy picture for traditional media and print advertising, finding that innovation is the sole key to their survival.

"Australia’s digital future will transform some industries, including knowledge industries, health and educational services, which will be underpinned by digitised products and services," Mr Stevens wrote in the report.

The report finds that Australia will no longer be known for its dependency on the export of natural resources over the next half century. It will become known as much an exporter of services such as tourism, business services, health and education services. The export of tourism alone could match the 2012 mineral exports totalling around $175 billion by 2030.

The full report can be found here

The CSIRO team that invented a new, faster wireless local area networking method, which went on to form the basis of modern Wi-Fi, has won the European Inventor Award 2012.

Inventors Dr John O’Sullivan, Dr Terry Percival, Mr Diet Ostry, Mr Graham Daniels and Mr John Deane were named as the winners of  the ‘Non-European countries’ category of the annual awards for the patented WLAN technology at an awards ceremony in Copenhagen overnight.

The honour marks the first time an Australian team has claimed the prestigious prize since its inception in 2006.

“We’re thrilled for the team to receive this international recognition for an invention that has had such a significant global impact,” said Nigel Poole, CSIRO’s Acting Group Executive for Information Sciences.

“It’s a technology that has changed how we work and how we live. The rapid expansion of indoor wireless communications is in part possible because of the WLAN technology invented by scientists at CSIRO in Australia.”

Used by over three billion devices worldwide, the technology is expected to be used by over five billion by the time the patent expires next year.  

The EIA is presented in five categories: Industry, Research, SMEs, Non-European countries and Lifetime Achievement. Fifteen finalists were selected across all categories from almost 200 inventors and teams who were originally nominated, by an international jury comprising leading personalities from industry, science, politics and media.

The Federal and Queensland Governments have struck a new bilateral agreement over the disputed Alpha Coal mine project, agreeing to 'significant' changes to pre-existing environmental approvals for major projects.

Queensland Deputy Premier and Minister for State Development Jeff Seeney described the changes as a 'major step forward' while introducing project management approaches to the process.

"They also give greater clarity and transparency about the respective roles of the Queensland and Commonwealth Governments and impose timeframes on both for consultation and responses through the approvals process," Mr Seeney said.

The new bilateral includes the setting of defined milestones and timeframes for providing documents, feedback and approvals, including the signing-off on Terms of Reference and key assessment reports. 

Mr Seeney said the new agreement would all but eliminate duplication in the environmental approval process.

“The changes negotiated between the State and Commonwealth will also provide certainty to project proponents around the length of time of the approval process,” Mr Seeney said. 

Federal Environment Minister Tony Burke said the signing of the new agreement would ensure that the Commonwealth Government would be involved in the process from the beginning.

"It was clear during the dispute over the Alpha Coal project that the new Queensland Government had fundamentally different expectations of the agreement compared to the Commonwealth," Mr Burke said.

"These amendments clarify these roles and should make sure that the dispute we saw in recent weeks is not repeated.

"The amendments ensure that the terms of reference are agreed by both governments and the Commonwealth is able to make its requirements clear at different points in the process.

More and more young Australians are electing to take gap years between the completion of their high school education and the commencement of tertiary education, according to recent statistics released by the National Centre for Vocational Education Research (NCVER).

However, far from spending a feckless year abroad on some sun drenched Iberian beach, most elect to spend their time working or pursuing further education.

The figures show that 24% of young Australians took a gap year in the period 2009-10, an increase from 10% in the ten years since 1999-2000.

Most gap-takers worked either part-time (28%) or full-time (23%), while others studied for a non-university qualification (10%), while only 6 per cent made it to the aforementioned beach.

“This research shows that a gap year is not just a year of fun and frivolity, but time many students take to refine their study or career goals and support the next stage of their life,” said Dr Tom Karmel, Managing Director, NCVER.

“The findings suggest that many gap-takers work to raise money for later study and expenses like rent, text books, and general living, or extra costs associated with relocating from non-metropolitan regions.

Who takes a gap year and why? is available from: www.lsay.edu.au/publications/2496.html 

The Queensland Teachers Union has rejected the latest enterprise bargaining agreement from the state government, the marking the complete rejection of the first round offering.

“DETE representatives stated that the government offer is a package; there can be no attributable salary increase for the work that teachers currently perform. The increase on offer is subject to the implementation of the government’s reform agenda,” the union said in a statement.

The Government is currently offering the state’s teachers a 2.7 per cent increase a year. Under the offer, graduate teachers will earn up to $61,636 per annum, classroom teachers up to $90,238 and principals up to $147,981 a year.

Energy Industries Superannuation Scheme has announced the appointment of Alex Hutchinson as the group’s new Chief Executive Officer.

With over 20 years experience in the financial services industry, the company’s board has welcomed Mr Hutchinson’s appointment.

"We are delighted that Alex has agreed to accept this new challenge and are looking forward to working with him to benefit all EISS members and stakeholders," said the chairman of the Board, Mick Doust.

The National Broadband Network Co (NBN Co) has announced it expects to deliver services to 12,800 Tasmanian premises in the coming weeks.

The announcement comes after the NBN was formally switched on in Deloraine in Launceston.

The combination of the new locations, those about to come on line and the existing sites in Tasmania will bring to 12,800 the number of premises in Tasmania able to connect to the fibre optic network. 

“Tasmanians were the first in the nation to take advantage of the improved broadband access that the NBN will eventually deliver to every Australian. I’m delighted that from today many more will be able to benefit from this essential upgrade to Australia’s decades-old telecommunications infrastructure. I thank residents for their cooperation, understanding and patience during construction,” chairman of NBN Tasmania Greg McCann said.

“The job ahead for NBN Co in Tasmania is to roll out the network across the remainder of the state. It’s a construction project that will see the creation of up to 800 new jobs at the peak of the rollout and the establishment of a permanent Tasmanian workforce to maintain the network.” 

The Tasmanian branch of the Australian Education Union has announced it will support the State Government’s transition to a four-term year. 

The AEU has received guarantees of protection to teachers’ employment conditions including:

• A Government back down on reducing teachers’ recreation leave to four weeks.
• Negotiation as to how leave will be identified.
• An assurance that there will be no diminution of entitlements to permanent, fixed term or temporary employees.

The Minister for Education and Skills Nick McKim said today that he welcomed the AEU's decision to accept the implementation of the four term school year for 2013.

"I look forward to working with the AEU to successfully implement the four term year," Mr McKim said.

The Australian Logistics Council (ALC) has welcomed a number of key recommendations in the Infrastructure Finance and Funding Reform Report released at the National Economic Forum.

“The Infrastructure Finance Working Group Report will help to generate much needed debate on how Australia can meet its future infrastructure needs,” ALC Managing Director Michael Kilgariff said.

The report made a number of major recommendations for reform for the sector, including linking infrastructure funding to state and territory government’s implementation of agreed upon reforms.

“This was a clear recommendation in the recent ALC Infrastructure Report Towards an Efficiency Freight Future, which recommends that the Commonwealth should make its infrastructure funding conditional on states achieving specific reforms, such as each capital city having a 20-year freight strategy consistent with the National Freight and Port Strategies,” Mr Kilgariff said.

The ALC also praised the long term objective of the reform report.

“ALC is particularly pleased that the Infrastructure Finance and Funding Reform Report recommends that state and territory governments should prepare 20-year infrastructure strategies that share a common framework and timeframe,” Mr Kilgariff said.

The Reserve Bank has announced plans to crack down in excessive surge costs on credit and some debit cards in a bid to ensure merchants don’t seek to bolster their profits through chargeing excessive amounts on card transactions.

“The decision to vary the Standards reflects the Board's concerns about the increase in cases where surcharges appear to be well in excess of acceptance costs or where surcharges are ‘blended’ across card schemes even though merchants' acceptance costs may be higher for some cards than others,” the Bank said in a statement.

The varied Standards will come into force on1 January 2013.