Industry News

The Australian and Chinese governments have signed a Memorandum of Understanding (MoU) aimed at strengthening cooperation on delivering infrastructure projects.

“I signed the MOU on Enhancing Cooperation in Infrastructure Construction with the Chinese Minister of Commerce, Mr Chen Deming, at Parliament House this morning,” Federal Infrastructure Minister Anthony Albanese said.

“The MOU will mean closer co-operation on planning of projects, exchanging information on investment opportunities and technical expertise, training and education, joint conferences, as well as joint infrastructure projects in the future.”

The MoU will see the establishment of a Working Group with membership from government departments, agencies, industry organisations and major financial and business partners.

A copy of the MoU can be found here

The Federal Government has announced Logan will host two innovative projects that will showcase best practice in urban design, planning and renewal.

Funded under the Liveable Cities initiative, the Federal Government will partner with Logan City Council to deliver the Logan Central Affordable Housing Demonstraction Project, a new apartment complex catering for the area’s growing number of low-income retirees, newly arrived migrants and the local hospital staff.

The second project will see the development of a long term strategic master plan aimed at guiding the future growth and development of the city’s health and education institutions.

“Known as the Meadowbrook Knowledge Precinct and encompassing Griffith University, Logan Hospital, Metropolitan South Institute of TAFE campuses, local bus and rail hubs as well as private developments along Loganlea Road, the project's aim is to create an urban environment where new businesses will want to set up and where people will want to live, work and raise a family,” Federal Minister for Infrastructure Anthony Albanese said.

US based environmental research group Worldwatch has published its Sate of the World 2012, warning that current trends of consumerism cannot be sustained and that more must be done to ensure development does not further compromise environmental health.

The report found that over the last 50 years, the global middle and upper classes have more than doubled their consumption levels, with the strain set to grow as between one and two billion people vie to join the consumer middle class.

“The planet cannot maintain such increases in resource demand without serious consequences for both people and ecosystems, concludes the Worldwatch Institute in State of the World 2012: Moving Toward Sustainable Prosperity. The book, the 29th in a series that Worldwatch began in 1984, stresses that we must act quickly to redefine our understanding of the “good life” and redouble our efforts to make that life sustainable,” the report warns.

“The Industrial Revolution gave birth to an economic growth model rooted in structures, behaviors, and activities that are patently unsustainable,” says Worldwatch Senior Researcher Michael Renner, co-director of State of the World 2012. “Mounting ecosystem stress and resource pressures are accompanied by increased economic volatility, growing inequality, and social vulnerability.It is difficult to avoid the conclusion that the economy no longer works for either people or the planet.”

The full report can be found here

Exports from Western Australia increased from a total value of $83 billion in 2009-10 to $112 billion in 2010-11, according to the Australian Bureau of Statistics.

Iron ore saw the biggest increase, from $34 billion being exported in 2009-10 to $57 billion in 2010-11. China continued to be the state's biggest export recipient during this period.

The mining industry remained a cornerstone of the local economy, making up 28% of the state's production. 

Western Australian residents also saw an increase in their weekly earnings during this period. Male earnings increased by $164 and female earnings increased by a smaller $62.

The state's Health Care and Social Assistance industry grew significantly, employing 17,800 more people in 2010-11 than in 2009-10. 

For further information, see Western Australia at a Glance, 2012 (cat no. 1306.5). 

M2 Telecom has announced it has purchased telecommunications company Primus for $192 million in a move that will see the group consolidate its position for its NBN service.

Primus Australia, the local sub-division of American owned Primus, is the second such high-profile purchase of a second tier ISP in as many months after iiNet purchased Internode and a series of other small scale ISPs.

The purchase has been reported as an all cash consideration, with Primus joining a suite of significant assets for M2, including Commander, Southern Cross Telco and Simply Mobiles brands.

“We are delighted to bring Primus into the M2 Group,” said M2 chief executive Geoff Horth in a statement. “The combined group will benefit from the strengths that each entity brings, reinforcing M2′s position as the leading challenger in the small to medium business market. The introduction of the Primus suite of next generation services along with the skilled and passionate team will ensure our sales teams are armed with the latest managed/hosted service offerings to meet the needs of current and prospective customers. On behalf of the company, I look forward to welcoming the Primus team and customers to the M2 Group.”

The purchase will see M2 add 165,000 customers and 500 staff to its ranks. 

The South Australian Government has passed the Water Industry Act that forms part of the largest overhaul of the State’s water sector in its history.

“The passage of this legislation which combines several acts of parliament, will deliver a more efficiency, competitive and innovative water industry in South Australia,” State Water Minister Paul Caica said.

The legislation will see the establishment of an independent umpire, giving the Essential Services Commission of South Australia the power to regulate pricing and standards for water and sewerage services.

It will also establish a Water Industry Ombudsman, a Consumer Advisory Committee and a Consumer Advocacy and Research Fund.

Mr Caica said the State Government conducted two rounds of consultation to give the community, local government and industry an opportunity to comment before the draft Water Industry Bill was introduced to Parliament in July last year.

“We received advice from several experts including Professor Mike Young, Chief Scientist Don Bursill, the Local Government Association, the Water Industry Alliance, the South Australian Council of Social Services, the Council on the Ageing Seniors Voice, the Conservation Council of South Australia and the Plumbing Industry Association,’’ he said.

The South Australian Government has introduced legislation before the State Parliament that will see TAFE SA established as a single statutory authority.

State Employment, Higher Education and Skills Minister, Tom Kenyon, said the legislation will aim to modernise governance arrangements, thereby allowing TAFE SA to operate in a more commercial and competitive environment.

“TAFE SA will become even more responsive to market needs by providing greater commercial autonomy and accountability through a Board of Directors, as well as flexibility and independence from government processes,” Mr Kenyon said.

The Skills for All legislation also establishes a clear separation between TAFE SA and the Department of Further Education, Employment, Science and Technology.

This will allow the department to focus on driving the Skills for All reforms and make independent decisions regarding the allocation of training funds,” Mr Kenyon said.

The introduction of the Bill comes after COAG agreed to a $1.75 billion investment package in skills throughout the country.

Victorian Minister for Energy and Resources, Michael O’Brien, has warned that his government may have no other choice but to reconsider its support of COAG’s National Energy Retail (NER) Law Bill if the Federal Government does not provide assurances that the Australian Energy Regulator will be sufficiently funded.

“The Bill also gives responsibility for enforcement of obligations under the National Retail Rules to the Australian Energy Regulator,” Mr O’Brien said.

“There are some areas where the National Energy Retail Law and Rules offer a materially lower level of protection or service than the existing Victorian framework. The Coalition Government has consistently stated that it will only sign up to the national framework if key Victorian customer protections are retained. Therefore a number of Victorian specific matters are to be provided for through regulations made under the Bill.”

“I have sought an assurance from the Commonwealth that the Australian Energy Regulator will be appropriately funded to administer jurisdiction-specific arrangements.”

The Bill has been tabled and is listed on the Government Business Program for Parliament this week, with the expectation that assurances will be provided.

Qantas has announced it will conduct a feasibility study into the potential of an Australian sustainable aviation fuel industry, backed by funding from the Federal Government after the company conducted a successful test flight of an Airbus A330 fueled by a 50-50 blend of biofuel and regulat jet fuel.

The Minister for Resources and Energy, Martin Ferguson AM MP, said the $500,000 Emerging Renewables Program grant would see Qantas partner with Shell Australia to undertake a feasibility study into the long-term viability of biofuel feedstock and the production of low carbon alternative aviation fuels in Australia.

"The study will also investigate the opportunity to use existing refining plant and fuel distribution infrastructure for aviation biofuel production," Minister Ferguson said.

Qantas CEO Alan Joyce said the project would explore the conditions needed for the production of aviation biofuel from sustainable sources within Australia.

“Today is a historic occasion in Australian aviation,” Mr Joyce said. “We are delighted to be operating Australia’s first sustainable aviation fuel flights and to be launching a study into the feasibility of producing such fuel in this country.”

“Alternatives to conventional jet fuel are vital to the aviation industry meeting ambitious targets for carbon-neutral growth and emissions reduction.

The Australian Institute of Health and Welfare (AIHW) has released new data that shows the country’s mental health workforce is continuing to grow.

The latest workforce information on the AIHW’s Mental Health Services in Australia website (available athttp://mhsa.aihw.gov.au/) shows the number of psychiatrists (including psychiatrists-in-training) per 100,000 people increased at an average yearly rate of 1.4% between 2005 and 2009.

“The number of nurses who work principally in mental health increased at an average yearly rate of 1.5% over the same period,” said AIHW spokesperson Brent Diverty.

Nationally, there were about 18 full time equivalent (FTE) psychiatrists (including psychiatrists-in-training) and 69 FTE mental health nurses per 100,000 people in 2009.

The highest rate of psychiatrists (including psychiatrists-in-training) was in Major cities, while the highest rate of mental health nurses was in Inner regional areas.

Psychiatrists (including psychiatrists-in-training) reported working an average of 40 hours per week and mental health nurses worked an average of 37 hours per week.

The average age of psychiatrists in 2009 was 52 years and more than two-thirds were male.

Psychiatrists (excluding psychiatrists-in-training) aged 55 years and over made up more than one-third of the workforce in 2009, and this has been stable since 2005.

The average age for mental health nurses in 2009 was 46 years and about a third were male. Among the general nursing workforce less than 1 in 10 are male.

“Mental health nurses are ageing, with the proportion of mental health nurses aged 55 years and over increasing from 20% in 2005 to 25% in 2009,” Mr Diverty said.

The Federal Government has opened round three of the Digital Hubs and Digital Enterprise for applications from service providers to deliver the third round of Digital Hubs and Digital Enterprise programs.

Both programs are competitive and applicants to either program will be assessed according to the degree to which they meet the eligibility and selection criteria set down in the program guidelines. A total of 40 communities will be funded under both programs.

“To further support NBN-connected communities, the Digital Enterprise program provides free information and training sessions to small-to-medium enterprises and not-for-profit organisations to explain how they can improve their online activities and maximise the opportunities provided by the NBN,” Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy said.

The closing date for round three applications is Thursday 10 May 2012.

Digital Hubs Round Three Program Guidelines are available at www.dbcde.gov.au/digitalhubs.

Digital Enterprise Round Three Program Guidelines are available at www.dbcde.gov.au/digitalenterprise

Nationals Senator Barnaby Joyce has called for a review of the country’s baby bonus, despite his party running a previous election platform that would see the $5000 bonus doubled to $10,000.

Senator Joyce made the call after he disputed newspaper reports that suggested he was pushing Federal Opposition Leader Tony Abbott to double the bonus.

"I can assure you I don't believe in doubling the baby bonus. I think that would be a ludicrous idea," Senator Joyce told the ABC.

"I have, to be honest, serious concerns with the baby bonus as it is especially when it ends up not being spent so much on the baby, but on problems in certain communities - especially such as alcohol."

The National Broadband Network Company (NBN Co) has responded to claims that the proliferation of wireless devices will render the NBN project a waste of money, saying that such claims are completely divorced from reality.

NBN Co Chief Technology Officer Gary McLaren said that the latest internet usage data from the ABS in fact proves the opposite.

“There is no question that Australians love smartphones and tablets but the vast bulk of Australia’s internet usage – some 92 per cent - is carried over fixed line connections,” Mr McLaren said.

“The proportion of mobile handset downloads over mobile networks is estimated to make up just 1.4 per cent of total internet downloads in Australia. Other wireless broadband technologies account for just 6.6 per cent.

“The eternal problems associated with spectrum scarcity – such as mobile congestion and a hefty price premium placed on using such a limited resource – are not going to go away. They may help explain why over the past 12 months the average amount of data being downloaded over mobile devices per subscriber per month grew by only six per cent.

“By contrast, average fixed broadband data usage in the same period grew by more than 80 per cent.”

Mr McLaren said that better fixed line infrastructure was essential to ease the load being placed on mobil networks.

Mr McLaren referred to a recent Informa study of 200,000 smartphone users in six countries that showed that on a global basis nearly 70 per cent of data usage on smartphones was over Wi-Fi rather than mobile networks. Wi-Fi generally relies on a fixed line network to connect to the internet.

“Fixed lines remain the engine-room of downloads in this country and around the world. As data-heavy applications such as video become more prevalent there will be an increasing need for robust fixed connections such as the NBN,” Mr. McLaren said.

The Australian Communications and Media Authority (ACMA) has published draft rules for the digital dividend spectrum auction.

“Publishing the draft rules is a key milestone for the ACMA in preparing for the auction,” said Giles Tanner, General Manager of the ACMA’s Digital Transition Division.

“Over the past months, we have been actively engaging with stakeholders—I’m pleased that we have their buy-in on the approach we’re taking.”

The draft rules consists of two parts—the allocation instruments and the technical instruments.

Once finalised, the allocation instruments will provide the legal basis for the auction. It will describe the spectrum products that are being offered and set out the rules for how the auction will be conducted. The allocation instruments are:

• two marketing plans—one for the 700 MHz band and one for the 2.5 GHz band an
• allocation determination.

The technical instruments will set out the technical rules that the spectrum winner(s) must abide by when using the spectrum. The technical instruments are:

• an unacceptable interference determination
• radiocommunications advisory guidelines for each band.

ACMA will also be hosting a webinar for stakeholders on Tuesday, 24 April 2012, to give an opportunity for interested parties to ask questions about the draft rules. Further information on the webinar will be announced shortly.

Stakeholders have until Wednesday, 9 May 2012, to submit their responses to the draft rules. Responses should be sent to This email address is being protected from spambots. You need JavaScript enabled to view it..

Independent Senator Nick Xenaphon has reiterated his push for a review of Fair Work Australia in the wake of the investigation into the Health Services Union (HSU).

While Mr Xenaphon stressed any probe into the authority would not compromise its independence, he said more must be done to subject the tribunal to more scrutiny.

Mr Xenaphon’s announcement comes after FWA completed its three year investigation into corruption allegations into the HSU, which is embroiling embattled Federal minister Craig Thompson.

"I think they've stuffed it up and there are many questions to ask about the way they operate and they do their work," Mr Xenaphon told the ABC.

"I'm sure they do lots of good work out there but in terms of this critical key investigation there are many questions that need to be answered about the way Fair Work Australia has handled it."

The Federal and State governments have announced $1.75 billion in skills spending at the Council of Australian Governments (COAG) held last week.

The skills package will be designed to accelerate skills reform by ensuring the national training system is better able to respond to the needs of the country’s economy.

Prime Minister Julia Gillard said the package is vital to lift productivity and competitiveness of the country.

“This will help more Australians get the training they need to get a job, to change careers or to up-skill and get a better-paying job,” Ms Gillard said in a statement.

The spending package will see the following reforms:

• The creation of a National Training Entitlement, giving working age Australians guaranteed access to a government subsidised training place;
• The expansion of income-contingent loans to subsidised higher level qualifications in the vocational education and training (VET) system;
• Launch of the MySkills website, to ensure students and industry can make an informed choice about the training that suits them, and a student identifier for the VET system; and
• Measures to raise the quality of skills training and outcomes.

The creation of a National Training Entitlement will see all working age Australians guaranteed access to a government subsidised training place, up to their first Certificate III.

An emergency meeting has been held by the Australian Workers’ Union with steelworkers from across the country, which addressed the worsening crisis facing the steel industry.

Over 80 steelworkers from all major steel plants met with representatives of federal and state governments as well as heads of industry to discuss and plan strategies to save the struggling Australian steel industry.

AWU National Secretary Paul Howes said the crisis facing the steel industry in Australia had worsened in recent months and more needed to be done to save this strategically vital sector.

"Australian steel manufacturers are on the brink of collapse," Paul Howes said.

"We have already seen over 1000 jobs go from BlueScope's Port Kembla and Western Port plants and Onesteel has confirmed it will shed up to 430 jobs by the end of this financial year.

"With numbers like these - there is no doubt the Australian dollar has continued to reek havoc on our local steel manufacturers and we fear it's going to get worse before it gets better."

Key issues affecting the steel industry include:

• The skyrocketing Australian Dollar;
• Lack of action from the Reserve Bank;
• The impact of the mining boom;
• Government and private sector procurement policies; and
• Illegal dumping from overseas markets.

A special 28 page report was released at the meeting as a potential policy proposal and called for the Reserve Bank to slash rates by between 25 and 50 basis points in order to preserve employment numbers.

The Executive and full council of Unions NSW has voted to accept Michael Williamson's resignation as Vice President, and also to suspend the Health Services Union's affiliation until governance issues can be resolved.

Mr Williamson was asked to resign last week, amid ongoing negative publicity about the Health Services Union leadership spilling over to affect the reputation of the broader union movement.

Unions NSW Secretary Mark Lennon noted Mr Williamson's resignation.

Further, he said the suspension of the HSU East branch sent a clear message about appropriate behaviour and governance for the NSW trade union movement.

"Six hundred thousand working people across NSW rely on a strong and vibrant trade union movement to represent their interests in the workplace and tonight's decision allows us to get on with the job of representing working people,” Mr Lennon said.

Mr Williamson has also resigned as a Unions NSW representative on the board of First State Super.

"In due course, Unions NSW hopes to restore the Health Services Union to full affiliation, but only once we are satisfied that all governance issues have been rectified," Mr Lennon said.

"We want to send a clear message to HSU members that they have our full support as we continue to defend their workplace rights and conditions."

The Australian Industry Group (AI Group) has released the March edition of its Australian Performance of Construction Index in conjunction with the Housing Industry Association (HIA).

The index shows that the sector has risen just 0.6 points to 36.2 in March. Poor demand and subdued conditions, particularly in the residential and commercial construction sub-sectors, continued in the month with house building falling to its lowest level in six months. Reduced workloads saw employment levels remain in negative territory and the new orders sub-index has now been contracting for 22 months.

The key findings are:

• The latest Australian Industry Group Australian Performance of Construction Index (Australian PCI®) in conjunction with the Housing Industry Association, was broadly unchanged in March - up just 0.6 points to 36.2 (readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease).
• March marks the 22nd consecutive month that the national construction sector has been in negative territory.
• Subdued demand, tight credit conditions, strong competition for available work and a lack of new projects hampered growth in March.
• Weakness was particularly pronounced in the house building (30.3), apartments (30.5) and commercial construction (35.5) sub-sectors.
• Engineering construction was 41.2 in the month.
• The new orders sub-index was again in the red - down 1.0 points to 33.2.
• Employment levels continued to fall in line with decreasing workloads, the sub-index registered 39.4 in March.

"There is an unequivocal deterioration underway in the non-resource domestic economy in 2012. As a bell-weather industry, residential construction is clearly highlighting this fact with the rate of decline in the detached house and apartment sub-indices of the Australian PCI® accelerating in March. Furthermore, new orders for house building fell in March to their lowest level in six months. It was time to act some time ago, but nothing has happened. A 50 basis point cut in interest rates is required in May, while Federal and state governments need to get on with the job of boosting new housing supply," Housing Industry Association Chief Economist, Harley Dale, said. 

The Australian Industry Group (AI Group) has urged the Federal and State Governments to place a greater priority on skills and training at the upcoming Council of Australian Governments (COAG) meeting, saying the adaption of a national approach to training is a necessity.  

"For too long our training systems have been plagued by inconsistent approaches, funding models and regulations, variable and often unacceptable levels of quality and unacceptably low levels of completion," CEO Designate Innes Willox said.

"Industry is particularly supportive of the thrust of the Skills for all Australians package that forms the basis for the proposed new Commonwealth and State funding agreement. This includes the 'HECS for skills' initiative which would improve equity and remove the disincentive of upfront fees for diplomas and advanced diplomas."

The group has expressed concerns over the transparency and accountability in the training system, saying it frustrates employers and impedes growth.

"Quality remains a serious concern for industry and we need to see a significant lift in the quality across the sector. Lifting the quality requirements of providers in order to access income contingent loans would be an important step in this direction. Equally the introduction of independent validation of training provider's assessments would be a major achievement and that should deliver greater confidence in outcomes for both students and employers," Mr Willox said.