Industry News

A new investigation into the treatment of depression is underway at the Griffith Health Institute, with a focus on depression in the workplace.

About 60 percent of Australians who are depressed are employed, and many fail to seek or receive treatment.

Researchers at Griffith University's School of Applied Psychology have developed an online program called Finding the Balance to help people who are employed improve their emotional wellbeing and prevent future problems.

"The study aims to give people a better understanding of themselves in relation to their work and personal life by investigating if their emotional wellbeing can be improved using the web as a source of help," researcher Shannon Moule says.

"We expect to prove that those who complete the Finding the Balance program will show significant improvement in mood and worker productivity."

The participants, whose identification and details remain confidential, will learn new strategies to help improve their mood and increase their quality of work. A total of 40 people, living in Brisbane, are required to take part in the research.

"A diagnosis of depression is not necessary for participants. If they feel their mood is low and it is starting to affect their functioning with work and life in general, they can undergo a screening process to determine if the study program is suitable for their needs."

Ms Moule says the researchers at the Mt Gravatt campus are aware of previous positive results.

"We know of employees whose depressive symptoms decreased and whose work performance increased after undergoing quality treatment," she said.

"Research shows that online treatments are successful in treating depression and can be an extremely attractive option for people who may find it too difficult to attend traditional face-to-face treatments.

"The key issue about facing depression in the workplace is the need for cost-effective, accessible, and anonymous treatments that encourage employers to implement them and make employees comfortable about engaging with treatment."

Finding the Balance offers a range of behavioural strategies through an eight-module online program.

"Participation will incur a small, negotiable fee to cover the costs of running the study," Ms Moule said.

More information is at  www.findingthebalance.com.au

The Victorian Government has announced it has chosen a preferred framework for development contribution plans.

Following consultation with industry representatives and stakeholders, Victorian Planning Minister Matthew Guy said his government has formed a new, straight forward and easy-to-understand system.

Mr Guy said the Government would now move to finalise a model of a new standardised levy system based on five infrastructure categories:

• Community facilities;
• Open space facilities;
• Transport infrastructure;
• Drainage infrastructure; and
• Public land.

Under the preferred framework a different levy will be set for different development settings such as greenfield development, metropolitan infill development and regional and rural development, as well as a levy for residential and non-residential development.

Mr Guy said an Advisory Committee would be appointed to set the new levy amounts.

"The intention of the new framework is to cut red tape, reduce delays and provide clarity to the delivery of precinct structure plans in Melbourne and in growth areas in rural and regional Victoria," Mr Guy said.

The new levies will contribute to funding new infrastructure, the upgrade or extension of existing infrastructure or replacement of infrastructure that is required to support new communities.

The Advisory Committee will be required to report to the Minister by the end of 2012.

Origin Energy has announced that Australia Pacific LNG Pty Limited has signed agreements with a syndicate of domestic and international commercial banks and export credit agencies for an US$8.5 billion project finance facility. Participants in the facility include the Export-Import Bank of the United States (US EXIM), The Export-Import Bank of China (China EXIM) and a syndicate of domestic and international commercial banks.

The project finance facility provides funding for the downstream parts of the project, including the liquefaction facilities on Curtis Island near Gladstone in Queensland, and will underpin the development of Australia Pacific LNG's CSG to LNG project. The facility is subject to a final investment decision (FID) being taken on the second phase of the Australia Pacific LNG project.

The commercial banks and US EXIM have signed the definitive project finance documentation with Australia Pacific LNG for 16 and 17 year terms respectively. China EXIM has signed a commitment letter agreeing to the key terms of the project finance facility, with its signing of the definitive documentation expected to occur shortly. Draw down under the project finance facility, which is subject to customary conditions precedent, including certain government approvals, will be made progressively over the construction phase of the project.

Origin Managing Director, Mr Grant King said the agreements paved the way for development of one of Australia's largest LNG export projects.

"Australia Pacific LNG's ability to secure US$8.5 billion in project finance from Australian and international lenders evidences the strength and quality of the project.

"Substantial progress continues to be made by Australia Pacific LNG across all areas of the CSG to LNG project and we remain on track to take a final investment decision on the second phase of the project by mid-2012.

"Given the timing of Australia Pacific LNG's phase one FID, we believe our project schedules and budgets were based on a solid understanding of current regulatory requirements and the cost environment. We remain confident that the project remains on schedule and budget to deliver first gas in 2015, as expected," Mr King said.

The Victorian Government has announced a new $20 million research initiative aimed at better understanding the effects of road trauma.

The Institute for Safety, Compensation and Recovery Research (ISCRR), an initiative of Monash University, the Transport Accident Commission (TAC) and WorkSafe, will manage the funding.

Funding will be delivered to the Transport Accident Commission (TAC), and will focus on improving lifetime care and disability support for those affected by road accident survivors.

"Last year the TAC managed almost 3,000 neuro-trauma claims from road trauma survivors including 232 cases of paraplegia, 205 cases of quadriplegia and 1,273 cases of severe traumatic brain injury," Victorian Assistant Treasurer Gordon Rich-Phillips said.

To be conducted over the next three years, the research will prioritise the development of new models of lifetime care, the improvement of rehabilitation and disability management approaches, the translation of research to the clinic and building neurotrauma research capacity.

ISCRR plans to involve Victorian neurotrauma researchers from the Spinal Research Institute (Austin Health) and the Centre of Excellence in Traumatic Brain Injury Research, (NTRI) Monash University in the rollout of research projects.

The Federal Government has announced a suite of new measures aimed at cracking down on organised crime at docks around the country.

Under the planned legislation, police will be given sweeping new powers to suspend a person’s right to work on the waterfront if they have reasonable cause for suspicion that they may have connections to criminal activity.

Home Affairs Minister Jason Clare said the move comes after a joint Federal and NSW operation seized over 12 tonnes of illicit substances entering Sydney’s docks over the last two years.

Mr Clare said the move comes as organised criminals have been able to infiltrate private companies at ports, allowing tracking and forwarding of illegal goods.

Legislation will be introduced later this year. 

The Federal Government has announced the appointment of former head of the United Nations’ police force Andrew Hughes as the country’s Inspector of Transport Security.

Mr Hughes, a career police officer with over 33 years of experience, will replace outgoing inspector Much Palmer after his term expires in June.

Prior to his appointment, Mr Hughes served with the Australian Federal Police for over 30 years as well as serving as the commissioner for the Fijian national police.

In his new role, Mr Hughes will be responsible for monitoring and identifying systemic failures and weaknesses in the country’s transport security regulations and arrangements. 

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 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 $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 Federal Government has announced a one-off $20 million funding boost to assist Tasmania’s exporters reach international markets.

The Government has confirmed the spending after it flagged the package in March in response to Tasmania’s sole international sipping container AAA ceasing operations.

The funding measures contain three key measures:

• Direct and immediate assistance to Tasmanian exporters through a one-off payment to help them stay competitive in the new shipping environment.
• Investing in infrastructure improvements at the Port of Burnie to increase container handling capacity and enhance the efficiency of movements within the port.
• Establish a freight logistics coordination team with an industry leadership.

“These infrastructure improvements at the Port of Burnie are crucial, and recognise its importance as the major freight port in Tasmania,” Parliamentary Secretary for Agriculture, Fisheries and Forestry Sid Sidebottom said.

“The port will receive $4 million in Federal infrastructure funding to increase container handling capacity and improve the movement of goods within the port, boosting efficiency and helping to lower costs for Tasmanian exporters.”

Two hundred IT workers at Westpac bank’s Kogarah site have won a reprieve after the bank backed down on plans to outsource their jobs.

The workers come from an area of the St George Bank that has been part the Westpac group since the merger between the two banks in 2009.

 Geoff Derrick of the Finance Sector Union said the result “demonstrates that you can do business and be successful in the finance sector without outsourcing work, slashing positions and offshoring jobs.”

“FSU members, through their collective action, have saved 200 jobs at Westpac. I congratulate union members at Kogarah for standing firm,” he said.

The jobs were at risk when Westpac revealed the bank was in advanced discussions with IBM about outsourcing those jobs.

“The workers at risk of having their jobs outsourced stood together to get straight answers from Westpac and collectively raised genuine concerns about the outsourcing plan. Staff believed that they had the skills and expertise to provide outstanding service to customers and the business in regards to their technology functions. And that the proposed outsourcing was not in the best interest of all involved.”

Last week, Westpac advised employees and the union that the IBM proposal had been rejected and that the jobs would not be outsourced.

Australian cancer treatment company,  Prima Biomed,  has announced its CEO Martin Rogers, will step down from August 31, but will remain on the board as a non-executive director. Mr Rogers has been in the position for four and a half years.

Matthew Lehman, the Company’s Chief Operating Officer, will assume the CEO role and will join the Prima board of directors. He will relocate from Germany to the San Francisco Bay Area, where Prima plans to concentrate its longer-term operational expansion.

Prima Chairman Lucy Turnbull said Mr Rogers had  consolidated Prima’s research activities to focus on development of CVac, brought together a strong management team and board of directors, and overseen the globalization of Prima’s development activities with key operations in the USA and Germany.

The company also announced that Dr. Neil Frazer has stepped down from his position as an executive director on the board, but will continue his senior management role as Chief Medical Officer.

In other changes to senior management, Dr. Sharron Gargosky has been promoted to Chief Technical Officer. Dr. Gargosky, based on the West Coast of the US, is charged with leading the scientific and technical development of CVac globally. Marc Voigt has been promoted to General Manager of the German subsidiary and Chief Business Officer of the Company. Mr. Voigt will be globally responsible for coordinating investor relations and driving business development.

The House of Representatives Standing Committee on Infrastructure and Communications has announced it will conduct an inquiry into the pricing of IT software and hardware in Australia compared to overseas markets.

“Australians are often forced to pay more for IT hardware and software than consumers in overseas markets. The Committee’s inquiry aims to determine the extent of these IT price differences and examine the possibility of limiting their impact on Australian consumers, businesses and governments,” Committee chair Nick Champion said.

The committee will look into the cost of computer hardware and software, including video games, downloaded music, e-books and professional software.

“The Committee is looking forward to hearing from the companies who set these prices and the consumers and businesses that purchase their products,” Mr Champion said. 

The Queensland Government has announced it has withdrawn financial support for the Cloncurry Solar Farm as part of the state’s ongoing cost cutting.

Pulling support from the farm, which is in its early stages, is expected to save the Queensland up to $5.6 million.

“These are savings which will benefit all Queenslanders rather than localised climate initiatives,”  State Minister for Energy Mark McArdle said.

“Large-scale solar farms are proven technology and it is up to the private sector to decide whether to invest in, build and operate such projects in Queensland.”

Mr McArdle said the government had informed Ingenero Pty Ltd, which was named preferred tenderer in December 2011 to design, build and operate the 2.128 megawatt solar farm, and the Cloncurry Shire Council.

“The Queensland Government had an option in its contract with Ingenero to cancel the contract at any time for any reason. The government has chosen to exercise this option to save money for Queensland taxpayers.”

The farm was set to produce 3,700MW hours of power per year, enough energy to power approximately 500 households upon completion. It would have offset approximately 76,770 tonnes of greenhouse gas emissions over its lifetime.

Cougar Energy has announced that its CEO, Dr Len Walker, will step down from his position, but will remain as the company’s Executive Director.

The company announced Dr Walker’s decision following a build-up of its executive base, and will now commence a recruitment process for the new CEO.

“The past few years have been extremely challenging, particularly given the political motivation evident in the shut-down of our Kingaroy plant,” Dr Walker said.

“Pressing forward from this experience has only been possible because of the dedication of all our existing staff. The appointment of a new CEO will inject new energy into the Company as it expands and develops its project options in the Asian region.”

The announcement comes as the company continues its preparations for a legal dispute in the Queensland courts after it accused the State Government of shutting down its Kingaroy plant with no evidence of any real or potential environmental risk. 

Australian non-major lenders have significantly increased their share of the first home buyer and refinancing markets according to a recent report conducted by mortgage broker AFG.

AFG’s Competition Index found that non-major lenders had expanded their market share from between 22 per cent to 29 per cent of the first home buyer market.

According to the report, Suncorp emerged with the biggest increase, from 10.1 per cent to 14.8 per cent over a period of a year.

This figure is well above the market share of three of the 'Big Four' banking brands for April 2012 - 8.9% (ANZ), 8.0% (Westpac) and 1.5% (NAB). This approach is likely to have placed pressure on the risk profile of their book and it has been noticeable of late that Suncorp have taken steps to address this by focusing heavily on their offer for sub 80% LVR lending.

CBA, consistently strong in the first home buyers market, had a 22.9% market share last month. ING is another non major lender strong in the first home buyers market with a market share in April of 4.5%.

“First home buyers are a very important part of the overall market, both because they create momentum up the property chain and also because their attitudes signal future trends. Today's generation of first home buyers are very willing to look outside the majors for their mortgage needs. This is good news for competition going forward,” Mark Hewitt, General Manager of Sales and Operations at AFG said.

The full report can be found here (PDF) 

The Federal Government has continued the roll out of its National School Chaplaincy and Student Welfare Program after Minister for School Education Peter Garrett announced 1000 new schools to take part in the program.

"The chaplaincy program has been very popular among schools and the changes we introduced mean that not only are more schools now benefiting from the scheme, but school communities have more choice over how they wish to take part,” Mr Garrett said.

“Of the 1000 new schools taking part, 65 per cent applied for the services of a chaplain, and 35 per cent for a student welfare worker.”

Mr Garrett also announced that the 2,555 schools with existing chaplains or welfare workers will be able to continue accessing the program.

More information on the program can be found here

Customer satisfaction with the country’s big four banks are declining according to a recent poll conducted by Roy Morgan Research.

Despite an overall decline, Westpac is the clear leader of the big four at 66.8 per cent, ahead of the NAB at 64.9 per cent, ANZ at 63.9 per cent and the Commonwealth Bank at 61.7 per cent.

Despite the drop in the latest month, the satisfaction level of bank business customers is still 3.6% points higher than at this time last year (61.5%), with all of the major banks exhibiting an increase over this period.  NAB showed the largest improvement over the last 12 months at 6.3% points closely followed by Westpac at 6.2% points, whilst the leading major bank Suncorp has improved just 0.1% points compared to April 2011.

“The decline in satisfaction among the banks’ business customers in April 2012 has further increased the gap between consumer and business satisfaction, which now sits at 13.6% points in April 2012. The banks are clearly not delivering on the expectations of business customers who are facing difficult trading conditions and economic uncertainty,” Norman Morris, Industry Communications Director, Roy Morgan Research said.

The report can be purchased here

Global commercial information specialist D&B has published recent findings of its Global Risk Indicator (GRI), finding that Australia is considered one of the safest countries in which to invest.

Due to its relatively mild economic slowdown and projected economic growth, Australia placed in the two countries, sharing the highest investment ranking of this season (DB1d) with Canada, Norway and Switzerland.

The GRI assesses economic, commercial, external and political risk to assess 131 countries around the world, with the highest rating a DB1a.

Australia was the only country in the Asia Pacific region to secure the DB1d, ranking higher than Japan (DB2b), Hong Kong (DB2c) and New Zealand (DB2c).

According to Christine Christian, D&B's CEO, the latest rankings provide some very important reminders for Australian policy makers and the business community.

"The world is continuing to change at a rapid pace and although Australia is faring well compared to other nations we cannot afford to stand still," said Ms Christian.

"The latest GRI rankings show that Australia is a low risk environment for business investment. However to maintain strong trading relationships and attract foreign investment to our shores, we must at the very minimum, maintain our current rating.

"When the rest of the developed world recovers and returns to economic growth, global competition will intensify. To keep our position in the top four safest countries, Australia's regulators will need to ensure that their focus on reform and strong economic management continue.”

The Australian Competition and Consumer Commission has announced it will not oppose the proposed acquisition by AGL Energy Limited (AGL) of Great Energy Alliance Corporation Pty Limited (GEAC), which owns Loy Yang Power (LYP) (owner of the Loy Yang A power station).

"The ACCC concluded that the proposed acquisition is not likely to have the effect of substantially lessening competition in the relevant markets," ACCC chairman Rod Sims said.

"The ACCC carried out a comprehensive review, involving extensive inquiries with a range of interested parties, including competing retailers, generators and prospective new entrants and formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition," Mr Sims said.

The ACCC considered whether the aggregation of AGL and LYP's generation assets would be likely to result in a substantial lessening of competition in markets for the wholesale supply of electricity. The ACCC concluded that the strong competition provided by all the remaining generators as well as some potential for investment in new generation would be likely to preserve competitive tension in relevant markets.

The ACCC considered whether the removal of LYP as a standalone generator and its vertical integration with AGL's existing retail base would be likely to raise barriers to entry and expansion for prospective and existing generators and retailers. The ACCC concluded that this vertical integration would not be likely to have the effect of substantially lessening competition in relevant markets, having regard to existing levels of competition in generation and retailing in Victoria and the potential for new entry and expansion following the proposed acquisition.

AGL currently owns a 32.54 per cent interest in GEAC, but is not involved in the contracting, marketing and dispatch of electricity from the Loy Yang A power station, which is currently managed by Loy Yang Marketing Management Company Pty Ltd (LYMMCo).

AGL is not involved in LYMMCo's operations in accordance with undertakings previously given to the Federal Court limiting AGL's economic interest in LYP to 35 per cent and AGL's involvement in, and knowledge of, the dispatch and marketing activities of LYP.

To proceed with the proposed acquisition of the remaining 67.46 per cent of issued share capital in GEAC (which would result in AGL owning all the issued share capital in GEAC), AGL will need to seek an order from the Federal Court to have these undertakings discharged.

The ACCC will not object to AGL seeking such an order. In the event of the court making this order, undertakings previously given to the ACCC to enable it to monitor compliance with the court undertakings will also cease to operate.

A Public Competition Assessment outlining the ACCC's reasons for its decision will be available on the ACCC's website, www.accc.gov.au, in due course.

Credit specialist Veda has found that around 750,000 Australians are at risk of falling into an uncontrollable debt spiral if the country experiences an economic downturn.

In the company’s Australian Debt Study, Veda found that 21 per cent of Australians are struggling to pay current credit commitments. Despite this, nearly a quarter of those surveyed said they will apply for more credit to help them cope with an economic downturn.

Veda's analysis of consumer behaviours if there is a period of economic stress shows:

• Most (66%) Australians would draw on household savings;
• One in four (25%) would increase their credit card limit, mortgage or loan;
• One in three, or almost 5.5 million, would borrow from family;
• Over 3.6 million (21%) would draw on their superannuation.

"Credit reports do not show a person's credit limit, or if they are failing to make the minimum payment on their credit cards or loans. It makes it easier for someone already in trouble to get yet more credit - pushing further into a downward debt spiral,” Veda’s Matthew Strassberg said.

The survey found that few who struggle to manage their credit seek professional advice, with black marked debtors staying on a credit report for five years.

Veda’s findings come as the Federal Government prepares to introduce long awaited legislation that will allow for better information on consumer credit reports.

The Federal Government has released the 2011-12 Regional Telecommunications review Committee report, concluding that the National Broadband Network (NBN) is crucial for the development of regional telecommunications.

Established in 2006, the Committee publishes regular reports into the state of telecommunications services in regional, rural and remote Australia.

The review found that:

• There is a "genuine desire across regional Australia" for the fast, affordable and reliable broadband services that the Government's National Broadband Network (NBN) provides.
• The NBN will be a critical platform for the future growth and prosperity of rural and regional Australian communities.
• The government's commitment to uniform wholesale prices for the NBN is "essential" and its importance "cannot be overstated."
• There is growing recognition in regional Australia that better broadband will support regional economic development, improving health and education outcomes as well as helping small businesses.

“From isolated and remote cattle stations to major regional centres, there is a genuine desire across regional Australia for access to faster, more affordable and more reliable broadband services,” the report found.

“The NBN is regarded as an opportunity to bridge the existing digital divide in regional Australia and allow individuals, businesses and communities to more fully participate in the digital economy."

The full report can be found here