Industry News

The Victorian Government has announced it has identified a western option for the proposed Kilmore-Wallan bypass route following extensive community consultation.

"We made a commitment to identify a western option and we are honouring that commitment," State Minister for Roads Terry Mulder said.

"The input from community members who attended shopfronts in Kilmore and Wallan was invaluable in helping to determine the location for this new option."

The option proposes a bypass located west of Kilmore, parallel to Paynes Road and Kings Lane.

"The option minimises impacts on existing and future residential areas, provides connections into the local road network and connects directly to the Northern Highway and Broadford-Kilmore Road, north of Kilmore," Mr Mulder said.

"This option will be fully investigated along with the four options to the east of Kilmore. Once the investigations have been completed, a comprehensive analysis can be made as to which alignment best meets the needs of Kilmore and Wallan."

Revised traffic modelling will be undertaken as part of the investigations, which will take into account the latest information on growth in the area, particularly to the south of Wallan.

The Australian Competition and Consumer Commission (ACCC) has announced it will work cooperatively with the wheat industry and port terminal operator Viterra to improve the proposed capacity allocation arrangements for port terminal services in South Australia for the bulk export of wheat.

The announcement comes after Viterra proposed an auction system to allocate port terminal capacity among competing exporters, as required by its access undertaking.

"The ACCC acknowledges the substantial work that Viterra has undertaken in preparing the proposed auction system and in consulting with industry," ACCC chairman Rod Sims said.

However, the lacklustre results of a similar auction scheme in Western Australia have sparked concerns, with the ACCC citing a number of problems, including large volumes of capacity not being allocated.

In issuing an auction objection notice, Mr Sims said "this is an industry-wide problem and more time is required to properly explore potential solutions."

"The ACCC acknowledges that Viterra has approached its obligations under its access undertaking in good faith and the concerns the ACCC has identified are largely industry issues, rather than a reflection on Viterra’s approach."

The ACCC will work with Viterra and the industry to ensure that the best possible auction system can be introduced in SA for the benefit of the bulk wheat exporting industry and the wheat industry more broadly.

WorkSafe Victoria has launched its inspector recruitment campaign, with roles available across Melbourne and regional Victoria.

WorkSafe’s Executive Director of Health and Safety, Ian Forsyth, said inspectors played a crucial role in ensuring Victorian workers returned home safe at the end of the day.

“Our main priority is to ensure the health and safety of Victorian workers is not compromised,” he said.

“We do this by checking in to see if employers are complying with the law, providing advice on how to make workplaces safer and undertaking enforcement action when necessary.”

“We’re looking for people with fantastic communication and problem solving skills and have the ability to work through difficult situations when they arise.”

Mr Forsyth said the WorkSafe inspectorate had an outstanding reputation with employers and health and safety representatives they deal with, which reflected their ability to develop and maintain strong relationships.

“We encourage those who are passionate about workplace health and safety and want to be part of a team that plays an important role in making Victorian workplaces the safest they’ve ever been to apply.”

WorkSafe inspector recruitment campaigns usually take place once a year and are advertised in major metropolitan and regional newspapers and online. Selection is extremely competitive.

The incidence of heavy fines and work place safety incidents shows that the construction sector should improve its safety record, according to WorkSafe Victoria. The call comes after two incidents in late March that could have resulted in an injury or fatality.

WorkSafe’s General Manager of Operations, Lisa Sturzenegger, said two of three recent construction industry prosecutions involved scaffolding at the site of a major collapse at Prahran in 2009.

Keilor company, SMS Scaffolding Pty Ltd, faced the Melbourne Magistrates court on Monday and was not held responsible for the collapse of the scaffold which injured three people and caused havoc in Commercial Road in February 2009.

“The opportunity for industry is for all employers and workers to look closely at how safety improvements can reduce the chance of injuries so the commercial and personal risk of legal action and the associated costs are doing arise.”

Ms Sturzenegger said while WorkSafe would continue to work closely with the industry to ensure constructive outcomes, individual employers and workers had well-established legal responsibilities.

“No matter what are the pressures, dealing with hazards before a serious incident is an investment in the project, the business or the lives of your workmates or yourself.  

WorkSafe Victoria has conducted a mock worksite setup on a busy Melbourne street in which two actors posing as workers asked passers by to hand over a live cable from one to the other.

The experiment saw one actor, playing the manager, asking a passer by to hand a live cable to an ‘apprentice’, despite the manager warning that the cable was live.

The experiment found 90 per cent of passers by obliged and handed the wire to the apprentice, who then feigned a fake shock and dropped the cable, wherein most passers by continued to try and hand the apprentice the wire again.

The experiment was conducted as part of WorkSafe’s supervisors’ campaign, to help demonstrate that people are willing to obey instructions, even if it means others may be harmed.

“Supervisors should not be asking workers to do something that is unsafe and dangerous as there is a high likelihood they will,” WorkSafe Operations General Manager Lisa Sturzenegger said.

“Supervisors need to be aware of this and ensure the people who are working for and with them are not put into a dangerous situation.”

The experiment was based on a series of psychological experiments conducted by Stanley Milgram in the 1960s, which highlighted people’s willingness to obey requests from authority figures, even if those requests were harmful to themselves or others.

“Victoria has Australia’s safest workplaces and its employers have, on average, the lowest premiums for workplace injury insurance, however this will only continue if high safety standards are maintained,” Ms Sturzenegger said.

The Business Advisory Forum (BAF) has agreed to reform that will expedite environmental approvals and assessments at its inaugural meeting.

“We know that red tape is a huge issue for business. For the small business owner who has to spend hours on paperwork or filling out forms, to the big business that has to wait months or even years for project approvals,” Prime Minister Julia Gillard said in a statement.

The BAF, which is made up of businesses leaders and state, territory and Federal leaders, outlined the following reform priorities:

• Environmental approvals and assessments;
• The Government has agreed to develop bilateral arrangements with the states to fast-track state assessments and approvals. This means states will be accredited to do certain Commonwealth assessments.
• Major projects;
• All levels of government agreed to work towards the creation of taskforces for major projects, so approvals are administered by a single state agency and unnecessary duplication is removed
• Ending duplication in carbon and energy schemes;
• Governments have undertaken to prioritise the completion of a review of policies and programs that are not complementary to the national carbon price and may be ineffective or inefficient.
• Energy pricing;
• Forum acknowledged the need to increase competition in energy markets. COAG will discuss bringing forward reviews of state and territory competition in retail electricity and natural gas markets and to ensure that energy regulation places greater weight on the outcomes for consumer.
• Improving development assessments processes;
• Best practice approach to risk based regulation.

BHP Billiton has announced that its Iron Ore President, Ian Ashby, will be lraving the company at the start of July after over 25 years with the company. Jimmy Wilson, currently BHP Billiton Energy Coal President, will succeed Mr Ashby.

 “Jimmy is a very experienced business leader who has more than 20 years’ experience with the Group. He will build on Ian’s successful leadership to continue to grow the Iron Ore business, while ensuring it continues to operate to world class standards. Jimmy’s background includes successful roles as President of the Energy Coal and Stainless Steel Materials business groups and he brings deep operating and project experience to his new role in Iron Ore. I know that he and his family are looking forward to returning to Perth,” BHP Billiton Group Executive and Chief Executive Ferrous and Coal, Marcus Randolph, said.

“I would also like to thank Ian for his tremendous contribution to BHP Billiton during his 25 years with the Group. Under his leadership Iron Ore has become our largest and most profitable business. Ian will leave Iron Ore in excellent shape and with a bright future. His wisdom and experience will be missed, and we wish him all the best.”

To allow a smooth transition, Mr Wilson will join the Iron Ore team immediately. Energy Coal CFO, Andre Liebenberg, will assume the role of Acting President, Energy Coal. A separate announcement around a final decision on the Energy Coal President role will be made in due course.

The BHP Billiton Mitsubishi Alliance (BMA) has announced it will cease production at the Norwich Park Mine indefinitely.

According BMA, the mine has been losing money for several months as a result of lower production and significant increases in costs and lower coal prices.

The decision to cease production follows a seven week review of the mine’s viability. The review could not establish any immediate remedies that would allow the operation to sustainably return to profitability.

BMA Asset President, Stephen Dumble said, “This decision was not made lightly. However, the impact of last year’s floods, combined with lower coal prices and high costs, has resulted in an operation that is not currently viable.

“While recent industrial action has had an impact on production, the mine has been unprofitable for some months. As a result, we have had to take urgent steps to both stop the losses and find the best way to secure the operation’s longer term future. Importantly, this decision on Norwich Park Mine is not reflective of the broader quality of our world class Queensland Coal operations.”

Mr Dumble said the Company would now focus on implementing measures that would enable Norwich Park to operate as a sustainably profitable, low cost mine.

“Until we find viable solutions for the future of the mine, we will not re-start operations. We understand that this decision will have a significant impact on our employees, their families and the Dysart community, and we are committed to supporting them during this period,” he said.

Mining giant Rio Tinto has announced it has become a member of the new China Beijing International Mining Exchange (CBMX). The CBMX is an electronic trading platform that will provide participating members with an additional iron ore trading channel in the China market.

The announcement comes after a signing ceremony was held in Singapore at the end of March.

Rio Tinto Iron Ore Asia president Alan Smith said "We welcome the development of CBMX as it gives us a new option for selling any available tonnes to China, over and above those already contracted. We look forward to the Exchange developing into a transparent, independent, efficient and sustainable iron ore trading platform supported by broad market participation."

Mirvac has announced that its Group Chief Financial Officer (CFO) Justin Mitchell has departed the group to pursue other opportunities.

Mr Mitchell will remain in his role until October to ensure a smooth transition.

Mirvac’s Managing Director, Nicholas Collishaw, acknowledged Mr Mitchell’s contribution to the Group, “Justin joined the James Fielding Group in 2002, prior to the merger with Mirvac at the end of 2004. He was appointed Group Chief Financial Officer in July 2007. During his tenure, Justin played a key role in re-establishing Mirvac’s balance sheet strength and will be leaving Mirvac in a strong financial position.”

An external search for Mr Mitchell’s successor will commence immediately.

Leighton Asia has announced it has won a seven-year, $420 million contract to provide mining services to PT Marunda Grahamineral in Central Kalimantan, Indonesia.

The contract will see the development of a a coal mining project, involving the extraction of over 2 million of high-quality thermal and coking coal per annum by traditional drill and blast and truck and shovel methods.

“Winning this contract is a testament to our solid track record and the experience accumulated over the past decade of working in Indonesia.  We are very proud to have won such a significant award, which is integral to our strategy of securing major, high quality coking coal mining projects in Central Kalimantan. This contract award from PT Marunda Grahamineral reaffirms our competitive position in Indonesia as a leading provider of total mining solutions for our clients,” said Justin Colling, President Director of PT Leighton Contractors Indonesia.

Under the contract, PT Leighton Contractors Indonesia will be responsible for providing project management, mine planning, surveying, supervision, site security, materials, heavy equipment, equipment maintenance, labour, transportation, medical services, consumables and site infrastructure.

Infrastructure and environment services provider Cardno has announced server new key senior executive appointments.

Michael Renshaw, formerly General Manager – Americas and Software, has returned to Australia and  taken up a new role, Executive General Manager  – International.  Mr. Renshaw, who has been with  Cardno for nine years, will continue to have oversight of Cardno’s operations in the Americas but will  also be charged with developing further growth opportunities in Asia and other international locations.

Paul Gardiner has been appointed as General Manager – Americas and Software and has relocated to the U.S.A. to take up the role. Mr. Gardiner was previously General Manager of North and West Australia and Middle East and has been with Cardno for fourteen years.

Roger Collins-Woolcock, who has been with Cardno for twenty years and was formerly General Manager – South East Australia & New Zealand, has been appointed as General Manager – Australia and New Zealand. Australia has been combined into one region in order to encourage more cross selling and seamless integration across the Australian and New Zealand businesses. Mr. Collins-Woolcock has appointed Jamie Alonso (formerly North and West Australia Operations Manager) as Australian and New Zealand Operations Manager.

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.