Economics & Tax

When selling on credit you lend customers interest free money and risk losing it.

Businesses selling to other businesses have to give credit because their rivals do. Choosing not to do so can mean loss of sales, passing up new customers and reduced market share. Yet it also means you are giving your customers interest free finance.

Giving credit is so risky that most banks only value debtors at 30% to 50% of book value and they can be reluctant to place any value on them at all, which is hardly surprising when there is a 2% bad debt risk the moment you give credit, a 25% risk at 90 days, and a staggering 51% chance that you will never see your money again at 180 days.

It is important to develop a simple credit policy for your business with key procedures to follow.

• assess the credit-worthiness of new customers;
• assess the credit-worthiness of existing customers seeking higher limits;
• consider carefully what credit limits you want to allow;
• make sure your terms and conditions of trade are up-to-date and expressly known to your customers; and
• establish, and stick to, good credit control and debtor management systems.

Remember we are not talking about debt collection here, but getting valued customers to pay when the terms and conditions and invoice say they should.

So what are your options when it comes to getting paid?

Just making a few phone calls means being your customers’ interest free financier and that creates bad debt risk –a big customer could go bust owing you three or more months’ sales. 

Making credit control a priority is easy for larger businesses, but harder for small companies operating without a trained credit controller. Getting office staff to do it among other tasks can be ineffective and stressful unless they have been on credit control courses. Doing it yourself can be impractical and stops you growing your business, but if you are a small business you might have to.

If you want quick payment, factoring is an option. Factoring companies pay up to 90% of your invoices within days and the balance (minus 2-4% commission) when your customer pays them. But they often insist on factoring all your invoices, so you pay commission on every credit sale you make.

The risk is if your customer fails to pay the factor you have to refund the amount advanced. To ensure they get it they require personal guarantees and/or other securities plus the authority to take the money directly from your account. If you do not have it, the guarantees will be exercised and if your personal assets are at stake, you have a serious problem. Speak to your accountant or lawyer before considering factoring.

If you don’t have the staff or time, you can look at outsourcing your debtor management. This can free credit control, invoicing and other debtor chores away from your offices without customers being aware of it. It can improve cash flow, lower your costs, reduce bad debt risk and save you from being a source of interest free finance.

Whatever you chose, do something because unless you manage your debtors, they can have a major impact on your business.

Almost two years later, the Federal Government has only acted on a handful of the report’s 138 recommendations.

The Government’s response to the 1,400 page Henry Tax Review is best described as a mixed bag for WA business.

Its proposal to impose a new Resources Super Profits Tax has been a hot topic and has received widespread criticism from industry leaders, especially those in the resources sector.

CCI is concerned that the introduction of new taxes and charges will threaten the international competitiveness of the sector, on which almost all WA businesses, directly or indirectly, depend.

We are already seeing early signs of the economic harm such a tax will cause.

A number of companies across the country are reviewing their operations and have put on hold new investment. Macquarie Bank late last month advised clients that Australia was “now seen as being a high sovereign risk destination to invest” and there was a “significant risk of major capital flight out of Australia.”

Our international competitors are planning to gain from the Federal Government’s policy error.

Canadian Finance Minister Jim Flaherty has already said publicly that the tax could be a huge competitive advantage for his country.

Industry concerns that the resources sector is being unfairly targeted were confirmed when the Federal Government announced further details of its plan to build a new national high speed broadband network.

The Federal Minister for Communications, Senator Stephen Conroy, said in a media statement that “taxpayers are paid back their investment with a modest return by
year 15 of the project”.

CCI is concerned that the Federal Government considers a 6-7% return on its broadband investment to be modest, but considers a similar return to be a “super profit” in the resources sector.

Under the Government’s proposed Super Profits Tax, a mining project which pays back its investors a return above the Government bond rate – currently around 5.5% – will be regarded as earning a super profit and will be forced to pay the extra tax.

All business asks for is a level playing field and to be treated fairly.

Similarly, the decision to increase employer superannuation payments from 9% to 12% in seven increments over a decade is in direct conflict with the Henry Review and will represent a significant burden on the business community.

It is estimated that this increase will equate to between $20 billion and
$23.6 billion per year and is the largest new taxing measure in the Government response – bigger than the Resources Super Profits Tax.

CCI believes that the Government has missed an opportunity to genuinely reform the nation’s tax system. Instead, the Federal Government has rejected outright around one fifth of the Henry Review recommendations, while many other recommendations have been diluted.

In particular, CCI is concerned about the failure to act on a breakthrough recommendation by the Henry Tax Review that payroll tax should be abolished.

CCI is carefully examining the report and will continue to raise its concerns with key decision makers.

The Minerals Council of Australia said that the resources sector already provided valuable input to the nation.

“The simple fact is that existing arrangements have delivered a big dividend for the Australian community,”  said council CEO Mitchell Hooke.

“That is plain from the fact that the mining sector accounts for almost 18% of corporate tax revenues despite accounting for about 8% of the economy.

“The average tax take from mining is 13% higher than the all-industry average. We have a two-speed tax system and the mining sector is already in the fast lane.”

Mr Hooke said the Federal Government’s response seemed confused.

“It (the Government) wants more from the mining sector while taking actions that will slow it down,” he said.

“The Government is tapping the brakes to slow the mining sector down and to let the rest of the economy catch up.”

The Australian Chamber of Commerce and Industry (ACCI) said the Government response to the Henry Tax Review was a mixed bag for business.

Like CCI, ACCI is concerned about business having to fund the increases in superannuation. ACCI chief executive Peter Anderson said estimations put the cost of this at between $20 billion and $23.6 billion per year for business once the full increase is in place.

“The Government’s funding of increased superannuation benefits is going to be paid for by Australia’s one million employers and small businesses,” Mr Anderson said.

“That is a very substantial new hit on Australian businesses. It is not funded by the proposed Resource Super Profits Tax.

“It also constitutes a breach of an election commitment made by the Rudd Government to the Australian employer community both before the 2007 election and immediately following…that it did not intend to increase the
9% employer contribution.”

After months of fiscal stimulus spending to support the Australia through the global economic downturn, the 2010-11 Federal Budget was an important opportunity for the Government to put in place measures to lock in the nation’s economic recovery.

But the Budget once again failed to recognise the important role that WA and the local business community is playing in supporting the national economy.

Returning the Budget to the black and reforming the nation’s taxation system were the key elements of the Rudd Government’s third budget.  

The centrepiece of the Budget was the introduction of a 40% Resources Super Profit Tax (RSPT), to be introduced from 1 July 2012.

This tax will make it even harder for WA to lift the nation’s economy out of the downturn.

CCI is concerned that the Government is relying on its proposed RSPT to raise billions of dollars to help get the budget back into surplus sooner than expected. Without this new tax, the budget would remain in deficit throughout the forward estimates.

The RSPT will also be used to fund a reduction in the company tax rate to 28% for all businesses and additional tax benefits for small businesses. CCI approves of a reduction in company tax, but not through this new impost on the resources sector.

The Budget also fails to take into account the infrastructure needs of WA. Despite accounting for more than 40% of Australia’s exports, being home to more than 10% of the population and accounting for 14% of the national economy, WA will receive support for just one infrastructure project – a rail line in the State’s Goldfields region.

However, important projects such as improving road infrastructure in and around Perth Airport, the Pilbara Cities project which will provide much needed improvements to social infrastructure in Karratha and Port Hedland, the proposed supply base for a new port in Derby and electricity upgrades in the Mid West have all been overlooked.

This under-investment will increase pressure on the State Government and the private sector to raise the funds needed to upgrade and build the roads, railways, ports and other critical infrastructure needed to sustain strong economic growth.

However, there are a number of positive aspects in the Budget.

The Federal Government’s decision to invest in the education and training of our future workforce is an important investment for the future, in order to address looming skill shortages not only in WA but across the nation. However, this initiative has not been matched by increases in the migration program, which has been frozen at 168,700 places after being significantly reduced last year.

CCI also welcomes the Government’s decision to cap growth in real government spending at 2% on average, until the surplus reaches 1% of GDP.

Overall, this year's Federal Budget has not adequately taken into account the needs of a growing and nationally significant state. It is hard to understand why on one hand the Government is relying on WA to strengthen its budget position, but on the other is failing to adequately re-invest in the local economy.

2010-11 Federal Budget Overview

• deficit of $39.6 billion in 2010-11, and a return to surplus
  by 2012-13 ($16 billion)
• net debt to peak at $93.7 billion in 2012-13
• introduction of a 40% RSPT from 1 July 2012, which will raise
  $12 billion by 2013-14
• reductions to the company tax rate to 28% by 2014-15 for all business and 2012-13 for small businesses
• small businesses with an instant depreciation for assets with
  an acquisition cost under $5,000, as well as a simplified
  pooling arrangement
• economy is expected to expand by 3.25% in 2010-11 and accelerate to 4% by 2011-12
• key funding initiatives focused on health (additional $2.2 billion), new infrastructure fund ($5.6 billion), skills for sustainable growth ($661 million) and renewable energy fund ($652 million)
• economy is expected to expand by 3.25% in 2010-11 and accelerate to 4% by 2011-12

Being nice in a negotiation encourages deception and opportunistic betrayal by the other party according to an expert in the field – does being nice really get you nowhere?

Research from Melbourne Business School Professor of Management (Negotiations) Mara Olekalns found that negotiators needed to convey competence, not niceness.

Competence implies that the other party is more likely to keep promises and to use information to create a good deal for both negotiators. These qualities mean that a negotiator is more willing to give accurate information to the other party.

Ms Olekalns’s research found that the most likely trigger for deception was an environment where one person felt they would be exploited.

“My research shows that positive emotions increase creativity and encourage greater risk taking and decreases the extent to which individuals scrutinise information,” Mara says.

“Deception requires creativity, risk and is assisted by the belief that the other party might be less likely to scrutinise information.”

Where power is distributed unevenly, negotiators who express anger are likely to misrepresent information and those who express anxiety are likely to withhold information.

Conversely negotiators who express optimism are unlikely to misrepresent or withhold information.

Ms Olekalns explained that negotiators must monitor their own language and convey competence, rather than niceness, to avoid being perceived as someone who is not giving accurate information.

She said when negotiators have evidence that the other party will keep commitments or when they themselves feel optimistic, deception decreases. Conversely when negotiators express negative emotions, deception increases.

These findings suggest that as more variables combine to increase concerns about the other party, negotiators choose to deceive.

To be a banker is to be a pariah in many parts of the world currently, but in Australia the industry has been able to maintain its strength and status despite the global financial crisis.

Western Australian institution and CCI member Bankwest has been through a turbulent period with not only the GFC to contend with but also a change in ownership following its sale by HBOS to Commonwealth Bank in October 2008.

In December of the same year Jon Sutton was brought from Commonwealth Bank to the role of Bankwest managing director.

Regarded now as WA’s most senior banker, he recently spoke at a CCI luncheon to give his views about the economy and where the road would lead.

“We’ve come back from the abyss and we went from a financial market meltdown to a good old fashioned recession,” he said.

“We’ve come through extraordinarily well. The WA economy is entering a period, dare I say a golden age, of sustainable economic growth, but not without some challenges going forward.”

Mr Sutton highlighted positive aspects of the economy, such as rising commodities prices and growing consumer and business confidence.

“WA has led Australia, but we still saw a dramatic fall in job advertisements and a number of businesses making some tough decisions around employment,” he said.

“I’m sure there are a lot of small and medium businesses still doing it tough but there are enough positive signs on the horizon.”

Those signs are largely emanating from China and the big projects WA has in the pipeline.

“The China story is reported daily in the media and some people probably think it is done to death,” Mr Sutton said.

“There is extraordinary economic growth going on in that country. Asia now accounts for 15% of global growth, so we are fundamentally plugged in to a high growth region.”

Mr Sutton responded to stories during November that bemoaned billions of dollars from the Gorgon gas project going off shore, explaining that WA was lucky to have such a large project at such an important time.

“There will be $33 billion spent in the Australian economy from Gorgon,”
he said.

“I noticed an article with some talk about how $10 billion or $15 billion may be going offshore from the project, but the rest of the world would give their right arm to have a project like Gorgon or Pluto, which is all around energy resources and energy security for the rest of the world.

“There will be a flow on to business. Thirty six thousand direct jobs will be created, the multiplier effect of that will be between six and nine times. It will also provide governments with a very rich endowment.”

These boosts to the economy must be given the right support to succeed however. Mr Sutton pointed out that the familiar problems of labour shortages and infrastructure bottlenecks needed to be tackled, not just in WA but nationally.

“One of the challenges we face in this country is that if we really want to get the benefits we are going to have to look at immigration levels,” he said.

Rises in interest rates have been met with some criticism, including from CCI. While understanding of the impact this would have on business, Mr Sutton was a cautious supporter of the Reserve Bank’s policy.

“We can not underestimate how destructive a weapon rampant inflation could be to this economy,” he said.

“The RBA has moved their rates to more neutral settings to stave off inflation.”

As the economy shifts from slowdown to growth over the coming year, banks are needed to provide the resources business needs to grow and Mr Sutton insisted business would be supported.

“One of the things we should take away from the last 12 months is the health the Australian banking system has,” he said.

All indicators point to another wave of skilled labour shortages in Western Australia with several massive resource and energy projects coming on stream.

According to research by CCI, WA will need to find an extra 400,000 workers over the next ten years, with a likely shortfall of 150,000 if there are no measures to grow the workforce.

Experience from the last wave of skilled labour shortages in Western Australia indicates that employers are going to need to develop better strategies to stand any chance of filling some vacancies in the future especially when looking to fill positions that do not pay the high levels usually associated with the resources sector.

The CCI Skills Match service was introduced a few years ago to assist members to identify and verify
skilled personnel from around Australia and overseas. 

In readiness for the next wave of shortages, CCI has now entered into an alliance with CareerOne.com.au to power CCI Skills Match. This new, dynamic service will provide businesses with greater assistance in the difficult, time consuming and expensive search for skilled labour.

When subscribing to the CCI Skills Match Database users will have additional access to the CareerOne Resume Database with over 500,000 CVs from Australian residents as well as the ability to search globally for the skilled workers outside of Australia.

CCI Skills Match can also undertake tailored programs for members which may include CV database interrogation, overseas market research/advertising, representation at appropriate overseas skilled migration events and interviewing of applicants to shortlist stage.

Employers will also be able to post their job vacancies on the CCI and CareerOne web sites through our special alliance which provides one low cost job listing and double the exposure (over 1.6 million unique browsers).

At the height of the global financial crisis, a worrying trend emerged among governments at home and abroad, with responses to the problem focusing on greater intervention and regulation.

Facing the worst global downturn since the Great Depression, there was a tendency for key decision makers to overlook the unprecedented benefits that the free enterprise system has delivered over the past three decades. Some policymakers have gone so far as to say that the system has failed and that the only way forward is for government to play a greater role in the economy.

CCI is an organisation with a long standing, rich and proud history of supporting free enterprise. As we move to recovery, CCI believes that now is the time to reinforce the benefits of a market based system, through its soon to be released discussion paper, In Support of Free Enterprise. This discussion paper reaffirms the gains that can be achieved from a free enterprise economy and sets out the reform agenda of wider and deeper economic liberalisation.

A free enterprise system is based upon secure property rights, freedom of contract, and a sound and enforceable legal framework. Clearly, those countries which have embraced these underlying principles have recorded the highest rates of economic growth and human development and generally have better access to education, healthcare and food. Free enterprise is the only economic system which has delivered unprecedented economic growth and prosperity, lifted millions out of poverty and delivered improved living standards for more people worldwide than at any other time in human history.

The economic downturn arising from the global financial crisis in no way diminishes these substantial gains which free enterprise has delivered around the world.

This does not mean that there is no role for government in a free enterprise economy. There is a clear need for government to support the underlying framework of the system, by shaping a fair and secure environment, protecting private property rights and the value of money, enforcing contracts and promoting competition.

However, there is no role for government to increase wealth and living standards by directing economic activity.

These outcomes can only be achieved by the private sector. Free enterprise provides incentives for those who work hard and take risks and encourages entrepreneurship, innovation and consumer choice. This ensures that scarce resources are continually employed in a manner which most effectively matches the changing needs and wants of society and in turn generates wealth and leads to higher standards of living.

In responding to the economic downturn, it is important that governments understand the key causes of the global financial crisis, to ensure that any policy changes will address the underlying problem.

In Australia, the push for greater government involvement in the economy cannot be justified on the basis that a lack of intervention and regulation contributed to the global financial crisis. Australia’s banking sector has largely avoided the toxic assets which have seen the failure of financial institutions worldwide, while the economy has remained relatively resilient in the face of the worst downturn since the Great Depression.

With no evidence of a widespread market failure, the Government should instead continue on an agenda of free market reform, to ensure transparency and improve the economy’s productivity and flexibility.

At an international level, reform to trade barriers will deliver significant benefits by allowing economies to use their resources more effectively and encouraging competition and improved productivity.

Governments around the world must also ensure that market based measures are adopted to address climate change. Given that climate change is a global problem which must be addressed at all levels of government, and by the international community, a global, market-based system would be the most efficient way to reduce carbon emissions, without penalising any specific industry or country.

Nationally, the Government needs to maintain appropriate broad economic settings, particularly in fiscal and monetary policy, which do not stifle enterprise, investment and growth.

There is also considerable scope to strengthen and streamline the national and state taxation regimes, to promote an economic environment that creates employment, income and wealth. However, this will require assessing the Commonwealth and State taxation system as one regime, as the ability to reform the most inefficient state taxes is limited by the imbalance in taxing powers between the Commonwealth and the States. 

The Australian industrial relations regime should also be reformed, to support workplaces to effectively deal with constantly changing national and global economy circumstances. Industrial relations reform is essential in promoting economic prosperity and driving productivity in the private sector and should encourage changes in the structure of industries to capitalise on opportunities created by new markets, processes and technologies.

The Government should also continue an agenda of microeconomic reform, to further improve the efficiency and productivity of the Australian economy. The free market reforms which were undertaken over the past three decades have provided the impetus for sustained economic growth as well as historically low unemployment and have been critical to the Australian economy’s ability to respond to changing economic conditions.

In particular, the microeconomic reform agenda should focus on:

•  improving competition, by implementing the National Reform Agenda, and introducing further reform in the areas of transport, energy, infrastructure regulation and planning;

•  regulatory reform, to reduce the burden on business and improve government and economic performance;

•  improving the efficiency and operation of the public sector, to ensure expenditure growth is maintained, service delivery is enhanced and public finances are protected; and

•  supporting the development of human capital, through education and training.

There are certainly lessons to be learned from the global financial crisis and undoubtedly this will not be the last crisis facing the global economy. However, the answer is not a bigger role for government. In fact, it is the opposite. The free enterprise system allows economies to adapt, respond and innovate in response to such events. It is important that we do not lose sight of this.

As the economy begins to gain momentum, 2010 will see organisations face new challenges in managing their human resources as goals move from cost cutting to growth.

Employee engagement

As the economy begins to recover, organisations will face one of their toughest challenges: the loss of intellectual capital. Employee engagement can help combat this loss. 

Employee engagement refers to individuals who are engaged and passionate about their work and who act in a way that will further the business’s interests. Employees who are engaged in their work and the organisation are less likely to become a statistic in the company’s turnover rate.

Promoting flexibility

The introduction of the Fair Work Act 2009 has established an avenue by which employees can now request flexible work arrangements. These requests may be made by employees who have responsibility for children under school age or children under 18 with a disability.

Employers that do not sufficiently prepare for these flexible work requests could see a number of consequences including a reduction in the morale of their workforce.

CCI recently advised a medium sized retail business on implementing flexible working arrangements.  The business contacted the CCI Employee Relations Advice Centre for assistance after reading about the advantages of introducing flexible work arrangements.

These advantages include:

•  increased employee retention

•  strengthened employee commitment

•  reduced absenteeism

•  improved morale

•  increased loyalty

Often these flexible work arrangements can be introduced without making any fundamental changes to business operations. An example of this is flex time arrangements whereby employees can accrue time in lieu which they can use at a later date as an alternative to using traditional leave. 

Fostering growth

This year will bring about a shift in focus from reducing expenditure and overhead costs to stimulating talent, increasing workforce productivity and boosting the bottom line. A recent study suggested that in 2010, business will need to maintain a focus on cost but more importantly work efficiently on fostering growth in those three key areas. 

Remuneration and
employee benefits

As a result of the global financial crisis, many employers were not able to offer employees pay increases and many had to cut back their employee benefit schemes. Common employee benefits that were reduced or removed included life and health insurance as well as employee product discounts. While a pay and benefit freeze may have been an appropriate and accepted business strategy last year, employees may be less likely to accept this approach in 2010.

As we move into a period of economic recovery, remuneration and employee benefits will become more important as more job opportunities become available in the market. Businesses will need to be smarter with their remuneration and employee benefits to ensure they continue to attract and retain premium employees.

Equal remuneration

This year may see Fair Work Australia exercising its new powers to order equal remuneration for male and female workers who do work of equal or comparable value. An employee or their union can make applications for equal remuneration to Fair Work Australia. Once an order is made it can be implemented in stages and, importantly, cannot result in a reduction of wages to any employees.

CCI is able to advise on best practice initiatives in the area of equal remuneration. In promoting equal remuneration, best practice strategies may include:

•  transparent remuneration practices

•  compare salaries of male and female employees regularly

•  ensure overtime and shift work is offered equally

•  conduct a gender pay audit

For more information on how to
prepare for the upcoming challenges
in 2010, please contact the CCI Employee Relations Advice Centre
on (08) 9365 7660.

Although the impact of the global economic downturn continues to be felt by local businesses, 2010 looks set to mark the beginning of a new wave of growth and prosperity for WA.

CCI’s latest snapshot of state, national and international economies, Outlook, found that while conditions remain challenging, the WA economy is set to return to strong growth in the second half of this year.

CCI’s optimism is shared by a large number of businesses and households. The latest quarterly surveys tracking business and consumer confidence show that WA businesses and households believe that 2010 will be a better year for the State’s economy.

The December quarter Commonwealth Bank-CCI Survey of Business Expectations revealed a marked turnaround in business confidence, with WA businesses’ expectations for the economy in the year ahead surging to a 13 year high. Just nine months earlier, business confidence was at an all time low.

This renewed confidence means that WA businesses are looking to expand their operations, and hire more staff this year.

Meanwhile, the Curtin Business School-CCI Survey of Consumer Confidence found WA households are also optimistic about the year ahead, with many reporting an improvement in their personal finances and job prospects. Consumers also believe it is a good time to buy household goods and property.

The global economy is also on the road to recovery and will provide an important boost to WA’s exports. In recent months, the world’s major advanced economies of the United States, Europe and Japan have all edged out of recession, while growth in the developing world has accelerated.

CCI believes the stronger conditions overseas and locally will see the WA economy grow by 4.25% in 2010-11, before picking up to 5% in 2011-12, and 6% in 2012-13.

While WA remains a stand out performer, the national economy has also held up better than expected, although it continues to feel the impact of the global economic downturn. Economic conditions across Australia are expected to improve in the year ahead, with consensus forecasts compiled by CCI showing that the national economy will grow by 1.75% in 2009-10, before picking up to 3% by 2010-11. 

While WA’s future is bright, the next six months will continue to be a testing time for the local economy. The impact of the global economic downturn continues to be felt across the State with the WA domestic economy recording its lowest annual rate of growth in eight years in September 2009. Business investment also fell in annual terms for the first time in five years and export returns continued to be eroded by weaker commodity prices.

In a testament to the strength of the local economy, WA will be one of the few economies worldwide to avoid the first global recession since the 1930s, with a modest expansion of 1.5% forecast for this financial year.

The State’s labour market will also continue to suffer from the weaker economic conditions in the near term. However, the worst appears to be coming to an end, with the unemployment rate having reached its peak and businesses starting to hire more staff. CCI believes that WA’s unemployment rate will fall back to 4.5% in 2010-11, before dropping to 4% by 2012-13.

While the outlook for the WA economy is positive, this strong economic growth will also bring about a range of challenges. Action is needed by State and Federal Governments to ensure the local economy is ready for the opportunities headed its way.

The biggest issue for WA business in the year ahead will be the return of severe labour shortages.

More than half of all WA businesses believe that labour shortages will have a negative impact on their operations in a year’s time, with around one quarter already describing labour as “scarce”.

The December quarter Commonwealth Bank-CCI Survey of Business Expectations revealed that construction workers, managers, technicians and trades workers are expected to be in highest demand. However, labour shortages will be widespread across all industry sectors, all regions and businesses big and small.

It is critical that measures are adopted to boost the labour force, to ensure that labour shortages do not limit the ability of the economy to sustain its growth.

A range of other issues are also likely to have an impact on the capacity of businesses and the economy to grow
and develop.

In particular, housing shortages and associated affordability issues, infrastructure constraints, taxation and unnecessary layers of regulation and red tape will place restrictions on the capacity of WA businesses to grow.

It is imperative appropriate policies and strategies are put in place to encourage growth and development and address these key challenges. This will ensure that the State is well positioned to sustain and leverage off current and future economic opportunities.

CCI will continue to work closely
with State and Federal Governments,
to ensure these challenges are
properly addressed.