Industry News

The New South Wales Government has announced a budgetary spend of over $650 million over the next financial year to renew Sydney Water’s critical infrastructure and expand into new urban growth areas.

State Minister for Finance and Services, Greg Pearce, said the Sydney Water’s planned expenditure will provide better services across its 45,000 kilometres of water and wastewater pipes.

“$380 million  will be invested  in 2012-13  to maintain, renew and upgrade Sydney Water systems across Sydney, the Blue Mountains and the Illawarra,” Mr Pearce said.

The investment in 2012-13 for maintenance and upgrades includes:

• $104.9 million for water distribution systems;
• $72.4 million for sewer network upgrades to ensure reliability;
• $72 million to assist with reduction in frequency of overflows;
• $71.3 million to upgrade wastewater treatment plants;
• $54.3 million dedicated to repairing critical water mains; and
• $4.9 million is dedicated to stormwater asset renewals.

“This program will improve the reliability of Sydney Water’s infrastructure, ensure supply to customers and minimise leakage impacts on the community and the environment.”

Mr Pearce said the spending is critical for the future growth of Greater Sydney, with $101.2 million being invested into new systems in urban growth areas.

The New South Wales Government has pledged $419 million to boost management of the state’s national parks and to help protect its native fauna.

State Environment Minister Robyn Parker said the state’s most precious environmental assets are the focus of the environmental budget spending.

The $1.4 billion budget for the Department of Environment and Heritage for the 2012/13 year represents a reduction of $55 million in funding.

Ms Parker said the 2012-13 Budget will deliver improved savings on energy for individuals and businesses as well as improvements to local economies through investment in programs to attract more visitors to parks.

“Our national parks currently receive around 34.6 million domestic visits each year, attract an estimated 3 million international visitors and attract more than 6,700 volunteers to work on important projects like bush regenerators,  wildlife counts and campground hosts,” Ms Parker said.

“This is a Budget that focuses on what people really want which is support to cut their energy costs, care for their local bushland and parks and smarter regulation of industry and polluters who fail to meet their environmental obligations.

The spending initiatives outlined in the State Budget for the department are:

• $121 million to support a modern, independent Environment Protection Authority;
• $71 million to manage pest animals and weeds and improve fire management in national parks. This includes ongoing  funding for the 90 National Parks and Wildlife Service fire fighters to help protect communities in metropolitan and regional areas;
• $220 million for the Solar Bonus Scheme;
• $53 million for programs focused on energy efficiency and water savings.
• $49 million for clean energy supply programs
• $19 million to help local councils prepare and carry out coastal, floodplain and estuary management plans;
• $7.5 million to conserve heritage assets – including $2.8 million for local projects under the NSW Heritage Grants program.

The State Government has also announced that the state’s Environmental Protection Authority will increase and target its regulatory activities through an ongoing compliance and enforcement campaign. 

The New South Wales Government has announced the formation of a new Independent Water advisory Panel responsible for providing expert advice on securing long-term water supplies for the Lower Hunter.

“The Lower Hunter Water Plan is a vital planning project that will help ensure water security for the region’s 500,000 plus residents,” State Minister for Finance and Services Greg Pearce said.

The Panel members include:

• Mr Chris Davis (Chair) – extensive experience in water management and National Water Commissioner.
• Prof. George Kuczera (Member) – leading expertise in hydrology and water engineering.
• Dr Wej Paradice (Member) – extensive background in natural resource management and river health.
• Ms Kylie Cochrane (Member) – expertise in communication and community engagement, including in the urban water sector.
• Mr Ross Chapman (Member) – extensive experience in water resource economics.
• Prof. Cynthia Mitchell (Member) – broad experience in water planning and decentralised water systems.
• Dr Tony Church (Member) – strong background in environmental flows and water quality.

“The Panel includes two Hunter-based members, Professor George Kuczera and Dr Wej Paradice, whose regional expertise and insights will ensure the representation of local knowledge on this high-level advisory body is achieved,” Mr Pearce said.

“The Metropolitan Water Directorate will lead this process, having demonstrated experience in water planning for major urban centres including the Sydney Metropolitan Water Plan, which has secured supplies until 2025 and beyond.

“The Panel’s first tasks will be to provide advice on the proposed planning framework and oversee finalisation of a comprehensive community engagement strategy,” Mr Pearce said.

The Federal Government has announced the first 13 grants from its $1 billion Clean Technology Investment Program, aimed at assisting manufacturers significantly reduce their energy bills.

The Minister for Industry and Innovation, Greg Combet, said the initial grants, worth $8.1 million, will help businesses install over $23 million of energy efficient equipment.

Five grants from the Clean Technology Investment Program and eight from the Clean Technology Food and Foundries Investment Program will support energy saving and low pollution projects.

"The Clean Technology Investment Programs are part of the Federal Government’s plan for a Clean Energy Future. They deliver practical help for businesses to become more efficient, more competitive and more sustainable,” Mr Combet said.

"Over coming years the Clean Technology Investment Programs are expected to support around 3,000 projects and help many manufacturers reduce their energy use." Manufacturers can apply at any time and AusIndustry will work with businesses to promote the Programs and help with applications.

The first recipients are:

Consulting giant Mercer has published the results of a diversity study it conducted throughout the asia Pacific region, finding that concentrated diversity and inclusion strategies are becoming increasingly important in attracting and retaining a strong workforce.

“A majority of organizations in Asia Pacific also see their diversity strategies as enabling them to better meet the needs of diverse customers,” says Bianca Stringuini, Human Capital Consultant at Mercer.

“In this sense, HR professionals should leverage their diversity and inclusion strategies to be stronger partners to the business and create an employee base that can better serve changing consumer segments.”

Mercer’s report found that cultural awareness is a leadership characteristic that organisations in the Asia Pacific region are increasingly looking for as Asian companies globalise. The report also found that talent in the region is becoming more mobile.

The report canvassed 355 employers from across 11 Asia Pacific markets. The key findings regarding strategy were:

Does your company have a diversity strategy?

• 19 per cent – Yes, but only for the country where I’m based
• 25 per cent – Yes, for Asia Pacific
• 22 per cent – Yes, at the global level but not yet for Asia Pacific
• 34 per cent – No.

The report found that gender was the major focus (74 per cent) of their company’s diversity strategy, while culture placed second (45 per cent), ethnicity in third (40 per cent).

Infographic by Mercer Insights

Logistics company Qube has purchased 100 per cent of the shares of Macarthur Intermodal Shipping, which, together with its wholly owned subsidiaries, trades as Independent Transport Group.

Qube announced the $95 million acquisition last week and will be funded from the company’s newly syndicated debt facility. The acquisition is expected to be earnings per share accretive in its first full year of operation.

“The transaction is an important element in Qube’s expansion into the provision of logistics solutions for rural commodities,” Qube’s Managing Director Maurice James said.

“Qube believes there is significant potential to build on these relationships to provide competitive, efficient logistics supply chain solutions for major grain companies”

The acquisition is expected to be finalised by the end of July. 

Business SA’s Chief Executive Peter Vaughan has lent his influential seal of approval to South Australia’s plans to reform occupational heal and safety laws.

According to Adelaide Now, the reforms will allow for a greater collective responsibility, meaning that members of organisations will have more responsibility for the implementation of workplace safety.

“We are pleased that the Government has agreed to address the concerns of business regarding control, while also retaining the current South Australian provisions of the right to silence,” Mr Vaughan told Adelaide Now.

A new agreement between Santos, ConocoPhillips and major Korean energy company, SK E&S,  will advance the development of gas discoveries in the Timor Sea. The agreement will see the progression of the development of the Caldita and Barossa gas discoveries.

Santos Vice President Western Australia and Northern Territory John Anderson said various development concepts for Caldita Barossa would be assessed during pre-FEED.

“We will look at the option of floating LNG as well as the possibility of a tie-back development to our existing LNG plant at Darwin, either as an expansion of those facilities, the back-filling of Bayu Undan when it comes off plateau or a combination of both,” he said.

The terms of the agreement are as follows:

• SK will earn a 37.5% interest in Caldita and Barossa through a proportionate reduction by Santos and ConocoPhillips.  ConocoPhillips will remain operator of both permits.
• SK will fund the first US$260 million of a three-well appraisal program, expected to begin in 2013.  Following completion of the appraisal program, SK will have the option to increase its interest to 49.5% in exchange for a further payment of US$60 million to Santos and ConocoPhillips, shared according to their original interests in the permits.
• SK will fund up to US$90 million of pre-Front End Engineering and Design (pre-FEED) and FEED activities, expected to begin in 2014.
• SK will make FID and first LNG cargo payments of up to US$110 million to Santos and ConocoPhillips upon meeting certain milestones.

WorkSafe Victoria has announced it has identified 27 separate safety issues at 43 sites following a 24-hour safety blitz in the northern Victorian town of Wodonga.

Inspectors from across the state visited the region in a coordinated approach aimed to undermine the ‘mates-network’ which often warned of approaching WorkSafe inspectors.

WorkSafe construction division group leader, Steve Peters, said tradesmen often called their mates working elsewhere.

“They’ll then pack up and work elsewhere, in some cases over the border, while we’re in the area. What we’ve shown is that a multi-target operation can be very effective.

“We’ve sent a message to the industry. If you get safety right, we won’t be spending a lot of time with you. If you don’t, valuable time and money will be lost, but at least there’ll be a better safety outcome and everyone will get home at the end of the day.”

Mr Peters said 12 safety improvement notices were issued for matters such as traffic control, electrical issues, falls from height, housekeeping and temporary fencing. Another 15 issues were dealt with by voluntary compliance.

The Victorian Government has announced the formation of a new Ministerial Freight Advisory Council (MFAC), responsible for providing an ‘important link’ between the sector and the Government.

State Minister for Ports Denis Napthine welcomed the formation of the council, which is comprised of 30 industry leaders.

"This development is great news and will provide opportunities for Government to work closely with industry on initiatives for improving the efficiency and productivity of Victoria's freight and logistics sector," Dr Napthine said.

"We are facing many challenges in Victoria with the rate of growth in freight that is surpassing population and economic growth. Being able to tap into existing industry expertise will help us shape future plans, such as the Victorian Freight and Logistics Plan, to deliver the infrastructure we need to handle this growth.

The MFAC is being established to replace the existing Victorian Freight and Logistics Council (VFLC) and will provide advice directly to Government.

The Council will be chaired by the current VFLC Chairman, John Begley, which will enable a smooth transition to the new MFAC. The membership of the MFAC will be drawn from leading companies in the freight and ports sectors along with industry member organisations including Victorian Transport Association, Victorian Farmers Federation, Shipping Australia Limited and the Municipal Association of Victoria.

SafeWork Australia has released the next six draft model work health and safety Codes of Practice and two guides for public comment.

The documents will provide employers, industry and workers with the most up to date guidance for implementing the required changes under the Federal Government work health and safety laws.

The codes released today for public comment are:

• Managing Risks in Forestry Operations
• Industrial lift trucks
• Cranes
• Amusement devices
• Managing Risks of Plant used in Rural Workplaces, and
• Managing Security Risks in the Cash-in-transit Industry.

The draft guides released for public comment are:

• Guide for Managing Risks in Cable Logging, developed to support the draft Code for forestry operations, and 
• Guide for Tunnelling.

The Chair of Safe Work Australia, Mr Tom Phillips AM encouraged businesses, industry and workers to get involved with the development of practical guidance to further improve work health and safety performance in Australia.

“Despite significant improvement in work health and safety in recent years more can still be done to keep Australian workers free from death, injury and disease,” said Mr Phillips.

Input from business, industry and the wider community will help make these documents become practical resources in the workplace and assist duty holders comply with the new WHS laws.”

The codes and guides can be accessed on the Safe Work Australia website

www.safeworkaustralia.gov.au.

The public comment period for these Codes of Practice closes on 24 August 2012.

Safe Work Australia media enquiries 
Phone: 0434 664 294 
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Victorian Assistant Treasurer Gordon Rich-Phillips has launched a new WorkSafe Victoria blitz targeting musculoskeletal injuries in a bid to tackle the state’s most common workplace injury.

"Musculoskeletal injuries are the most common workplace injury, costing nearly $1 billion a year in medical costs, wages and other expenses," Mr Rich-Phillips said.

"They affect the body's muscles, joints, tendons, ligaments and nerves, are easily prevented, often difficult to treat and can be long-lasting and a source of great pain.

"Every day 43 Victorians are seriously hurt with these injuries, with an average workers' compensation claim costing $55,000 medical costs, wages and other expenses."

"These injuries are largely hidden because they do not make the nightly news, but the impact on workers, their families and their employer's business can be enormous and long-lasting.

"Ensuring people are properly trained and supervised, use the right equipment and clean up spills to prevent falls are no-cost or low-cost measures that will reduce workplace accidents," Mr Rich-Phillips said.

The Federal Government has awarded the final six contracts for the multi-billion Regional Rail Link, with the final work package awarded to the Leighton-Downer Joint venture. The $43 million contract will be to design and construct the West Werribee Junction work package.

To date, the Federal Government has committed $3.2 billion to the Regional Rail Link through the Nation Building Program, with the Victorian Government providing the balance of funding.

The rail link will ensure that Victoria's three largest regional cities, Geelong, Bendigo and Ballarat, will have their own dedicated tracks through the metropolitan system, improving the capacity and on time performance for metro and regional services.

The Regional Rail Link is expected to be fully operational by early 2016, and will allow for extra train services to move up to 9000 extra passengers across the network during peak hours.

The project will see the first new railway line being constructed in Melbourne for 80 years.

Works have been completed on the Northern Territory’s first Solar Hybrid Power System at the Ormiston Gorge Rangers Station in the Territory’s West MacDonnel National Park.

Minister for Central Australia, Karl Hampton, said the solar panels the hybrid system is a combination of solar panels and battery storage that will work alongside the existing generators.

“Reducing greenhouse gas emissions is a key action within the Territory 2030 strategic plan and more solar panels in our parks and reserves will help achieve this,” Mr Hampton said.

“The introduction of a hybrid system at Ormiston is part of a rollout that has already improved energy outcomes at Watarrka National Park and Finke Gorge as part of the same program.”

The hybrid system was constructed to reduce fossil fuel consumption used at the station and is expected to result in fuel reduction savings of more than 60 per cent.

“Our parks play a huge role greening the Territory and supporting the great Territory lifestyle, whether it be for a day trip to Nitmiluk National Park, camping at Litchfield National Park or riding a bike through the West MacDonnell National Park, they bring many social, cultural and economic benefits to Territorians.

The National Centre for Vocational Education Research has released the Australian apprentice  and trainee statistics for the December quarter 2011.In total there were 449 000 apprentices and trainees in-training as at the end of December  2011, an increase of 2.5% from the previous year.

Comparing apprentice and trainee activity in the year to 31 December 2011 with the year to  31 December 2010:

• the number of people commencing in trades occupations decreased by 5.9%
• the number of people commencing in non-trades occupations increased by 4.5%
• the number of people completing apprenticeships and traineeships increased by 6.9%.

In the shorter-term, seasonally adjusted data show between September quarter 2011 and December quarter 2011:

• trades commencements decreased by 1.3%
• non-trades commencements increased slightly.

Copies of Australian vocational education and training statistics: Apprentices and trainees, December quarter 2011, are available from www.ncver.edu.au/publications/2499.html

The April 2012 Housing Finance figures released by the Australian Bureau of Statistics (ABS) shows the second consecutive monthly rise in new home lending, after figures showed a 1.2 per cent increase in financing.

However, the Housing Industry Association (HIA) remains unconvinced, saying the required strong market rebound is proving elusive.

“The number of loans for the construction or purchase of new homes increased by 2.1 per cent in April following a 3.8 per cent rise in March. Given contemporary weakness in new home construction activity, it is encouraging to see a second consecutive, albeit modest rise in this leading housing indicator,” said HIA Chief Economist, Dr Harley Dale.

When compared to March, the April statistics show:

• The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.2%. Owner occupied housing commitments fell 0.5%, while investment housing commitments rose 0.3%.
• In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.2%.
• In trend terms, the number of commitments for owner occupied housing finance fell 0.4%.
• In trend terms, the number of commitments for the purchase of established dwellings fell 0.6%, while the number of commitments for the construction of dwellings rose 0.8% and the number of commitments for the purchase of new dwellings rose 0.8%.
• In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 16.8% in April 2012 from 16.4% in March 2012.

Federal Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, has visited the California based Space Systems/Loral, where the satellites for the National Broadband Network are being designed and constructed.

“The two new NBN satellites will double the speed of the existing interim satellite service, which over 7000 Australians in regional and rural areas are already benefitting from,” Senator Conroy said.

“Satellite is the most cost-effective way to provide high quality communications services over large, sparsely populated regions. We are proud to contribute to Australia’s National Broadband Network,” said John Celli, president of Space Systems/Loral. 

“We commend the Australian Government for its pioneering program to provide equal access to broadband services for all its citizens.”

Loral’s satellites will provide fast and reliable broadband access to Australia from an orbit 35,786 km above the Earth’s equator.

NBN Co will launch the Long Term Satellite Service in 2015. For more details on the Interim Satellite Service, including eligibility criteria, visit NBN Co’s website at www.nbnco.com.au or call NBN Co on 1800 881 816.

Shadow Communications Minister Malcolm Turnbull has lashed out at the Federal Government’s National Broadband Network scheme, describing it as evidence of pork barrelling.

“Analysis of the NBN’s three-year rollout plan in The Australian today shows 59 per cent of suburbs where construction will begin in 2012-13 are in Labor electorates, and only 35 per cent in Coalition electorates,” Mr Turnbull said in a statement.

Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, returned fire over the Coalition’s broadband policy. Senator Conroy urged Mr Turnbull to ‘come clean’ over their policy plans.

"Mr Turnbull has made 684 tweets, issued 23 press releases and delivered 7 public speeches in 2012. He has still not, however, released a broadband policy,” Senator Conroy said.

The latest verbal scuffle between the two comes after Senator Conroy described Mr Turnbull has ‘either financially illiterate or lazy’ when Mr Turnbull described the NBN as a cost to the Federal Budget. 

A report conducted by networking giant Cisco has found that total data used is set to increase by over seven fold by 2016.

The sixth annual Cisco Visual Networking Index Forecast (2011-2016) predicts internet traffic in Australia will grow 7.3-fold from 97 Petabytes a month in 2011 to 708 Petabytes a month in 2016 - a compound annual growth rate of 49 per cent, equivalent to two billion DVDs per year in data.

The National Broadband Network has jumped on the report, using it as categorical evidence of the need for a ubiquitous, high speed internet infrastructure.

"Australia's ability to participate in the digital economy is being held back by the unequal access to broadband around the country and a chronic need for faster upload speeds,” NBN Co’s Chief Technology Officer Gary McLaren said.

"A National Broadband Network with fibre at its core removes these bottlenecks making it easier for families and business owners to create and send large files, work from home and participate in video chats and conferences. It will enable true two-way broadband communications."

Curtin University researchers have developed a new process to dehydrate subsea gas that could open up gas fields currently deemed unviable.

Dr David Parks, Postdoctoral Fellow in Curtin’s Department of Petroleum Engineering, said the new process did not require toxic chemicals.

“There’s always water in natural gas, so to prevent blockages in deep subsea pipelines, companies typically inject chemicals such as glycol and methanol into the gas stream,” Dr Parks said.

“That costs a lot of money, in chemical costs and the increased complexity of connections from the shore, which means companies generally only exploit fairly large fields.

“Our subsea dehydration process can open up projects that are currently too expensive, making stranded fields economical.”

Dr Parks said a typical gas pipeline could develop hydrates at temperatures below 12 degrees. These hydrates, a combination of gas and water that form as a crystalline, ice-like material, are potentially disastrous.

“Hydrates can block a pipeline, and when that happens, removal can be very difficult and companies may have to abandon it,” Dr Parks said.

“Subsea temperatures commonly get down to 4 to 5 degrees, so to avoid hydrates you either keep the pipeline warm, treat the water with chemical additives or remove the water.”

The new process has two stages. The first utilises the Joule-Thomson effect in which water-saturated natural gas is expanded and the drop in pressure results in cooling and the expulsion of water. In the second stage, gas is sent to a controlled vessel that creates hydrates.

“By encouraging hydrate formation in a controlled environment, those hydrates pull water out even further, leaving gas that can be safely transported,” Dr Parks said.

Successful pilot plant testing of the process was undertaken in the Clean Gas Technology Australia Laboratories at Curtin. The next step is testing at field level.

“The outcomes of our experiments suggest the technology has significant merits. It saves costs, is small and simple enough for subsea installation and requires minimal maintenance. Now we’re looking at industry to help develop the project further,” Dr Parks said.

Dr Parks is also pursuing technology to support this breakthrough, recently receiving a $35,000 industry grant to investigate subsea electrical generation for offshore platforms.