This Council provides advice to the CCI Board on matters of specific relevance to CCI members in the manufacturing, engineering and resource sectors in WA.  It represents the views of members in the sectors to ensure that key economic, environmental and legislative issues are addressed and promote rather than hinder the growth and viability of these sectors.  It meets on a bi-monthly basis.

Key overarching issues / expectations to guide Council and its Committees’ deliberations over the next 12 months are outlined below:

• Stimulate debate on supply and reliability of essential services.
• Significant progress on a broad range of industry competition issues.
• Make progress on the elimination of planning and infrastructure impediments to major industry development.
• Make progress on streamlining of approvals and the elimination of red tape.
• Improve effectiveness of regulators in addressing overall community interest.
• Identify emerging factors impacting on local industry participation.
• Investigate greenhouse gas emissions trading and post Kyoto options.
• Ensure Federal Government uses its control of Senate to introduce meaningful industrial relations reform.

This Council provides advice to the CCI Board on all matters relevant to CCI members in the construction industry sector.  It effectively represents the views of members in the sector to ensure that key economic, environmental and legislative issues are addressed and promote rather than hinder the growth and viability of the sector.  It meets on a bi-monthly basis.

Council has identified the following issues and outcomes for 2005:

• Achieve a better understanding and alignment between contractors and clients on industrial arrangements on major project sites.
• Consideration of proposed Construction Industry Improvement Bill to ensure proposals meet industry needs.
• Determination of appropriate industrial arrangements at Australian Marine Complex Common User Facility.
• Review of research on skills shortages and capacity to identify ways Council can contribute to overcoming shortages.
• Ensuring increased overseas skilled migration to overcome immediate skills shortages.
• Application of competency based versus term based apprenticeships to shorten term.
• Extension of high wide load corridor network.
• Identification of emerging factors impacting on local industry participation.
• Achieve greater awareness of adverse impact of inappropriate risk allocation.
• Ensure State Government contracting approaches meet industry requirements.
• Ensure changes proposed nationally for occupational safety & health in construction industry meet industry requirements.
• Monitor impact of changes in State occupational safety & health arrangements.

CCI is a strong supporter of the need for reform of the electricity sector in Western Australia. Continuing reform of the electricity sector is critical to underpinning the growth of the WA economy. CCI has therefore welcomed statements that in its second term the State Government will continue to reform the sector with the aim of lowering costs to business and the community as a whole.

Electricity prices in WA remain amongst the highest in Australia, especially for business and private renewable energy suppliers face great difficulties in accessing the electricity grid.

In addition concerns continue to be expressed about the reliability and quality of the electricity distribution system. The recent wide-spread power supply interruptions underline the need for a more robust, diverse and competitively based electricity industry in which consumers are not reliant on an aging network managed by the State’s monopoly supplier, Western Power.

CCI staff, members of the Resource and Energy Committee and other CCI members involved in the electricity sector, have worked extremely hard to assist the State Government develop the necessary consumer codes and regulations governing market arrangements. CCI has also contributed to the development and implementation of demand management measures that will complement supply-side measures to maintain security and reliability of medium and long-term electricity supply.

Partial reform has established the wholesale electricity market, consumer (including small business) protection measures and a regime to cover third party access to Western Power’s network.  These however fall far short of the proposals that were to accompany the disaggregation of Western Power and CCI will continue to emphasise the need to fully reform the WA electricity industry.

Over the past year, CCI’s Resource & Energy Committee in particular has focussed on reliability of electricity supply issues, both for generation and networks. Reliability of supply will remain a key focus for the forthcoming year.

CCI’s contribution to the development of the systems to support competition in the WA gas industry culminated in the past year with the implementation of full retail contestability.

The Resource and Energy Committee also made a submission to the Productivity Commission inquiry into the Review of the Gas Access Regime. Adoption of the Commission’s recommendations gives the prospect of achieving an appropriate balance between price for consumers and certainty for pipeline owners, especially when considering new investment in pipeline infrastructure.

CCI has taken a very active role in stressing the needs of industrial development in the State. We have stressed the importance of the policies and practices of all levels of government being conducive to the continued operation and further development of heavy industry.

CCI strongly supported the Burrup Industries Forum over the proposed emergency listing of the Burrup Peninsula on the National Heritage List.  The emergency listing proposal was subsequently withdrawn by the National Heritage Trust. CCI is continuing to work with the Forum to ensure that any listing via the normal process currently underway does not adversely affect industry from reaching its full potential on the Burrup.

CCI criticised the Northern Strategic Industrial Area Environmental, Social and Economic Study conducted by the Department of Industry & Resources for giving too little emphasis on economic factors and avoiding some key issues.

CCI has continued to emphasise the importance of developing the Kwinana Industrial Area (KIA) and its adjacent industrial precincts to their full potential.

Submissions continue to be made on the Hope Valley-Wattleup Redevelopment Project strongly supporting the industrial development of land within the buffer of the KIA. The finalisation of the Hope Valley–Wattleup Masterplan is intended to safeguard the buffer around the KIA and provide much needed general industrial land in the metropolitan area.

However, the finalisation of that plan was premature given the Air Quality Buffer Review and related Statement of Planning Policy for the area has not been competed. Subdivision approvals given for land adjacent to the buffer will allow additional residents into these areas and erode the level of protection the Plan offers.

The dropping of plans to develop a near-Perth heavy industrial estate at Breton Bay has now focussed attention on south-west heavy industry sites – particularly the key triangle formed by Bunbury Port, Kemerton and Collie.

However no single site will be able to replicate the complex integrated relationships within the existing KIA. To maximise opportunities the synergies between these sites and with the KIA need to be realised. This will require an increased focus on the transport linkages within the south west and with Kwinana.

If Western Australia fails to provide attractive sites, meeting the essential factors influencing heavy industry site selection, then project proponents, and importantly the financiers of these projects, will look elsewhere.

This is a report on the Kwinana Industrial Area (KIA), commissioned by the Kwinana Industries Council (KIC) and the Chamber of Commerce and Industry of WA (CCI) [in association with others] and prepared by Sinclair Knight Merz.

This report looks at financial, social, material and energy data and provides a realistic and conservative view of Kwinana industries. It is based on the responses from 28 (out of 35) surveys, data and opinion from support industries, and state and local government agencies.

Part A

Part B

Part C

CCI has provided executive support for the Kwinana Industries Council since its formation in 1992. The KIC addresses the wide range of common environmental, safety, industrial synergy and community issues, specific to the Kwinana region.

Addressing community concerns over the perceived impact of industry on community health has continued to be a major focus for the KIC.

During the year the KIC has been implementing the restructure of its operations to strengthen the focus on strategic direction and external relationship management and more effectively manage the large number of issues with which it has to deal.

Provision by CCI of the secretariat for the Burrup Industries Forum has continued to be extremely useful in focussing CCI’s efforts on the issues confronting heavy industry development on the Burrup Peninsula and elsewhere in the State.

The Burrup Industries Forum has been established by current and prospective project developers on the Burrup Peninsula to identify and manage common industry development, environmental, emergency management and social issues.

The Forum has especially played a critical role in the debate about the proposed National Heritage Listing of the Burrup Peninsula.

CCI has continued to make the case that approvals processes and regulation must be streamlined and duplication eliminated to encourage economic development.

The length, complexity and detail of the approvals processes are continuing to turn away major investment from WA. CCI is concerned that changes recommended in the Keating Review of major project approvals processes are only just now being implemented more than two years after Keating reported.

The role of local government in plant approvals processes for heavy industry is increasing beyond their traditional role in building and planning approvals. This has increased complexity and uncertainty for industry and increased the risks faced by local government in making decisions outside their area of traditional competence. Community involvement in approval processes is also growing, increasing approval timeframes and the potential for businesses to miss critical windows of opportunity.

In addition, Commonwealth approvals processes, particularly through the widening ambit of the Environmental Protection and Biodiversity Conservation Act, for example in areas such as heritage, are adding to the regulatory burden and time and resources required to negotiate the approvals system.

The Keating Review reforms however do not adequately encompass the concerns of the myriad smaller projects, both by small and larger business. The coordination of assessments, up front scoping of issues and delineation of approval timelines lie at the heart of the Keating reforms. These are unlikely to be applied to smaller projects due to the complexity which these necessarily bring on early in the process and due to resource constraints within government.

All government approvals and regulations need to be streamlined and duplication eliminated to minimise the administrative burden on both industry and government, and to ensure business (especially small business) is facilitated.

CCI is therefore calling for Regulatory Impact Assessments and regulatory reviews to be instituted as part of the introduction of all new regulation.

The current resources boom has exacerbated concerns over approval times, exposing the current limitations in approvals staff resources within government agencies. Steps have been taken by the State Government to augment these staff resources, especially within the Department of Environment and Department of Industry and Resources. However this underlines the need for efficient approvals and regulatory processes, while at the same time ensuring that appropriate regulatory oversight is in place.

CCI has continued to have input into the State Government’s Sustainability agenda making submissions on government agency reporting requirements, the draft Sustainability Bill and participating in two of the Sustainability Roundtable working groups.

CCI remains concerned about the overly prescriptive nature of the State Sustainability Strategy and government’s interventionist role.

There is significant potential for the sustainability agenda to more effectively include economic aspects of business in the approvals processes. However community consultation processes and the potential for industry to have to address social issues best dealt with by government, may overwhelm the benefits of the Keating reforms and blow out approval timeframes.

Greenhouse remained a key focus during the year with successful representation ensuring the exclusion of state based targets or a state based carbon-trading system from the State Greenhouse Strategy, and a greater recognition of the role of the market in undertaking abatement measures.

Disappointingly the State Government called for ratification of the Kyoto Protocol which resulted in CCI being unable to support the strategy. The Kyoto Protocol will limit growth and development in Australia while not impacting on emissions growth in burgeoning developing country markets.

Adaptation to climate change requires a robust economy in order to absorb the costs. Therefore adaptation work or emission abatement should not be required to go far beyond “no regrets”. However, overtime Australia may be negatively affected through offset trade and trade restrictions if it refuses to sign the Protocol.  It is therefore important for Australia to remain influential in the development of international policy.

The Kyoto Protocol however should not be signed unless it can be shown to be in Australia’s interest. 

CCI is currently working to ensure that the Greenhouse gas emissions reporting requirements for industry in WA – as outlined in the State Greenhouse Strategy – are consistent with national requirements.

CCI continues to have a strong presence on the environmental policy front, including input into the Department of Environment's license reform process and contributing to departmental working groups.  While the license reform process has been slow, the outcomes will be beneficial to licensed industry.

CCI has made a number of submissions on key Environmental Protection Authority policy direction statements relating to issues such as environmental offsets, wetlands, environmental principles and buffer distances.

The Core Consultative Committee on Waste (3C) has consumed a significant amount of CCI's environmental policy resources.  The 3C is a multi stakeholder group appointed by the Minister for the Environment to develop and implement a stakeholder involvement program for the establishment of hazardous waste treatment site(s) in WA.

Progress is being made and members continue to support CCI's involvement in the 3C.  It remains the only game in town that may eventually result in the community allowing a hazardous waste treatment facility to establish.

New regulations - such as the Unauthorised Discharges Regulations, Controlled Waste Regulations and Native Vegetation Clearing Regulations - have caused considerable angst due to unintended impacts and the creation of technical non-compliances that are impossible for some businesses to avoid. The proposed Annual Compliance Statements have also caused considerable concern to members.

CCI has made strong representations to the Minister for the Environment and her senior staff regarding the new regulations - and caused a disallowance motion to be raised in Parliament and a number of exemptions, administrative changes and a commitment for a 12-month review have been gained. CCI also continues to make representations on the format of the Annual Compliance Statements.

It is essential that the administrative burden both for industry and government is not unnecessarily increased, so that staff resources can be directed to improving environmental outcomes rather than red tape. CCI has therefore called for regulatory impact assessments to be issued with all new regulation as a way to ensure regulatory burden is examined.

In a welcome move, the Minister for the Environment instigated a regulatory impact assessment to be prepared on the draft Environmental Protection (Swan Coastal Plain Wetlands) Policy and Regulations. CCI will continue to argue for similar assessments on all new policy and regulation.

The standing of regulators, and in particular environmental regulators, in the community is currently poor. As a result industry needs to work with government on means by which this standing can be enhanced. One key element of this however is the efficiency and effectiveness of current environmental regulation.

CCI advocates the uptake of eco-efficiency and cleaner production within our membership and the wider business community.

CCI is a signatory to the Western Australian Sustainable Industry Group Cleaner Production Statement. Our Action Plan for 2003 - 05 under the agreement can be found by clicking here.

During 2003 CCI completed an Eco-Efficiency Agreement with Environment Australia aimed at helping businesses access information and put into practice eco-efficiency and cleaner production measures. Under the agreement CCI continues to promote and advocate eco-efficiency. A final report on the project is located by clicking here.

A key part of the agreement was the development of the Business and Environment Manual by CCI. The manual is a compendium of information to assist small to medium enterprises to improve their environmental performance. As well as providing useful, practical information on environmental management the manual provides a wide range of links to other information. The manual can be found by visiting http://cleanerproduction.curtin.edu.au/industry/b&emanual/

As part of the Australian Chamber of Commerce and Industry’s commitment to eco-efficiency, CCI surveyed members about eco-efficiency for the second time and found an increasing understanding and adoption of eco-efficiency measures.

Eco-Efficiency in Kwinana

CCI and Kwinana Industries Council commissioned the Kwinana Industrial Area Economic Impact Study with the assistance of Environment Australia, LandCorp, Departments of Minerals and Petroleum Resources and Planning and Infrastructure.

The study analysed the economic impact of the Kwinana Industrial Area.

It also examined the flow of products and wastes between the businesses. More than one hundred products and wastes flow between twenty-five industries in the Kwinana Industrial Area. The capacity to use the wastes and by-products of nearby industries has resulted in significant benefits for each of the businesses involved and reduced the amount of wastes needing disposal. Implementing eco-efficiency principles has resulted in real savings for these Kwinana businesses.

More information on the Kwinana Industrial Area Economic Impact Study can be found by clicking here.

CCI’s submission to the Economic Regulation Authority’s inquiry into urban water and wastewater pricing highlighted impediments to competition in the water sector.  

The availability of transparent pricing for the various elements of the water supply chain – supply, transmission, distribution and retail – is a critical factor that will limit the ability of potential market entrants to establish business viability. CCI emphasised that opportunities for co-operation to deliver more efficient and effective water services may also be created through pricing transparency, especially in a wholesale water market. Greater involvement of private sector providers should create opportunities for industry development and industry diversification and result in greater innovation, reliability and security of supply.

In addition CCI stressed the need for an assured long-term water supply strategy.

CCI has also continued to argue that any proposal to charge for bore water supply or impose water resource management charges needs to be considered against the prioritisation and efficiency of government water management activities and the contribution by private sector to water resource management.

The State Government continues to make significant contributions to common user infrastructure for major projects - such as at Burrup Peninsula. However, the infrastructure needs of the current wave of major projects in WA are increasing the pressure on the State’s resources.

CCI is concerned to see the WA Government provide more information on the infrastructure plans it has for the state over at least a five year period and to support that with planning intentions that will impact on business over a larger period of at least ten years.

The more limited and company specific nature of Commonwealth support for major project infrastructure contrasts markedly with the greater returns to the Commonwealth than the State from major projects. CCI has been working to raise the priority given by the Commonwealth to the funding of industry infrastructure requirements.

There is also a need for arrangements that enhance the opportunities for Public Private Partnerships to play a greater role in meeting WA’s infrastructure needs. In addition, industry oriented infrastructure projects, such as high wide load corridors, need to be raised in priority versus community infrastructure projects

CCI’s Transport Committee previously expressed concern that transport linkages to key regional ports such as Dampier and Bunbury had been omitted from the draft National Land Transport Plan: AusLink. While the key linkage to the Port of Bunbury was included in the final plan, the critical link to the Port of Dampier and the Burrup Peninsula industrial area was not.

The Committee has therefore continued to urge the Australian Government to include such a link to the Burrup Peninsula in the AusLink corridors of critical importance.

CCI has been an active member of the Steering Committee convened by the Department for Planning and Infrastructure to prepare a draft State Transport Infrastructure: Freight Program (STIP). STIP focuses on transport infrastructure priorities in WA for the next 10-15 years with the intent of influencing the scope and detail of the Commonwealth’s AusLink program and the National Strategic Transport Plan to be coordinated by the National Transport Advisory Council.

While the final document is not intended for the public consumption, CCI’s Transport Committee has urged that further consideration should be given to placing the STIP report into the public domain. CCI has argued that the STIP review process should include provision for wider industry consultation.

CCI has long emphasised the importance of the Fremantle Inner Harbour and the critical need for efficient freight links between Fremantle Port and the industrial hinterland of Perth. This was the basis for CCI’s support for the Fremantle Eastern Bypass linked to Roe Highway Stage 8.

Unfortunately, the Government has prevailed on this issue and has removed the bypass reserve from the Metropolitan Region Scheme, and commenced the selling of the land.

CCI however has continued to work as a part of the State Government’s Freight Network Strategy Implementation Committee to assist government’s objective to meet the critical freight objectives without these road links. Of particular concern is how the link critical freight link to the Inner Harbour can be maintained while allowing access for customers and suppliers to be maintained for affected industry.

CCI has been a strong supporter of the need for development of Outer Harbour container facilities to augment the Inner Harbour facilities. This is arguably the most critical factor in the Freight Network Strategy as it provides the safety valve for the time when transport linkages to the Inner Harbour reach their capacity.

In this regard, CCI is a member of the Steering Committee for Fremantle Ports’ proposed Outer Harbour development. The Outer Harbour project is extremely important to WA, but raises some issues regarding the impact of a north or south access on the Kwinana Industrial Area and the potential for competition.

The Transport Committee has supported the proposal by Main Roads to introduce a Notice system for heavy haulage access to road networks to replace the cumbersome current Permit system.

However, the Committee expressed great concern about the blowout in delays being experienced (up to 10 weeks) by heavy haulage companies in obtaining police escorts for transport of over-dimension loads. CCI was an active participant in the Main roads Pilots and Escorts Review which considered this concern among other issues.

The WA Police Service has agreed that traffic wardens can replace Police as heavy vehicle escorts, in order to reduce these delays and free up sworn officers for core policing functions.

CCI’s Extractive Industries Committee has worked closely with LandCorp to ensure the industrial development of the Hope Valley-Wattleup area is harmonised with the extraction of basic raw materials.

More recently however the Committee lodged an appeal against Environmental Protection Authority recommendations that may result in limestone resources in the Hope Valley – Wattleup redevelopment area being sterilised until the completion of a biodiversity strategy.
 
The Extractive Industries Committee is also represented on a stakeholder steering group overseeing a comprehensive study that is underway to determine the size and location of buffers around hard rock quarries in the City of Gosnells. This study has the potential to set a precedent for other hard rock quarries and similar industries that have the potential to have an offsite impact.

The Committee has recently initiated work to support a review of the Basic Raw Materials Protection Strategy for the greater Perth metropolitan area.

The Committee has been active in highlighting to the Department of Environment the necessary improvements needed to the native vegetation clearing regulations.

The Committee also established a working group on dieback. The Committee has finalised a document providing management guidelines to minimise the spread of the pathogen during the extraction, processing and transportation of basic raw materials. This reflects industry commitment to contribute to the control and management of the dieback disease.

Consideration has also been given to the growing issue of a national exposure standard for crystalline silica.

The Committee successfully responded to a proposal by the Department of Industry and Resources to substantially increase Specific Rate Royalties, which cover basic raw materials, arguing that any proposed change to royalties should be prospective.

The Committee also continues to argue for the elimination of duplication between Development Approvals and Extractive Industry Licences at local government level, and the need for longer license and approval periods.

CCI’s Chemical Industries Committee has put considerable effort into working on issues affecting hazardous substances and dangerous goods, particularly the development of the regulations that will support the Dangerous Goods Safety Act, which has now finally been passed by Parliament, and the recent issue of security sensitive ammonium nitrate.

Dialogue between the Committee and the Department of Industry and Resources was successful in ensuring that industry concerns regarding security were taken into account in the department’s Explosives and Dangerous Goods Licensing System (HAZMAN) while meeting the community’s expectations of openness and accountability of such systems.

The Committee has also worked to make the overlap and duplication in acts and regulations governing the activities of chemical industries more consistent and workable for industry. The Committee is also cognisant of the need for appropriate regulatory approaches to meet the circumstances in WA, especially in remote areas of the state.

CCI has been appointed to the Department of Health’s Standing Committee on Food Safety and Related Matters. This has the objective of achieving broad consultation within state government agencies on policies on food and food safety matters in Western Australia.

CCI maintains close involvement with the Australian Chamber of Commerce and Industry on food industry matters, providing the opportunity to influence debate on issues of national importance.

The Food Industry Committee made a submission to the Department of Health and Ageing on their review of the consultative mechanism for food issues. This reiterated CCI’s long held view that the ad-hoc approach to consultation presently in place does not adequately provide advice to the Ministerial Council, the Standing Committee and Food Standards ANZ.

CCI participated in the Food Standards ANZ consultative process for the review of Nutrition and Health Related Claims. CCI strongly believes food manufacturers could significantly contribute to preventative health care by using appropriate health promoting claims on specific food products that enable consumers to make informed choices.

Over the past year the Labour Hire Industry Committee has been addressing a number of claims for awards and industrial cases which could have significant ramifications for how labour hire firms could offer their services. While adverse impacts have to date been kept at bay, these matters continued to be pressed by the unions.

The labour hire industry is also under scrutiny through a number of inquiries into independent contracting and labour hire arrangements.

The Committee has also ensured that a labour hire industry perspective has been provided on payroll tax, extended working hours, skills shortages and a range of other occupational health and safety and industrial relations issues.

CCI’s Construction Industry Council welcomed the Federal Government moving to address industrial relations problems plaguing the building and construction industry in introducing the Building and Construction Industry Improvement Bill 2003. Council is looking forward to eventual on the ground measurable improvements in addressing the problems identified by the Cole Royal Commission.

CCI has taken up Council concerns about the eligibility criteria under the State Government’s Building Skills Policy, with some additional flexibility being achieved.

CCI also continued to work to address Council’s concerns over the allocation of risk in major construction projects, with particular success being achieved with the Public Transport Authority on the southwest metropolitan railway, and with the Main Roads’ design and construct Project Deeds.

The Construction Industry Council has supported the State Government’s objective to improve the Professional Indemnity insurance premium environment through legislative change - but stressed the need for these objectives to be reflected in the requirements of government contracts. In many cases the most demanding insurance contractual requirements occur in State and Federal Government contracts.

CCI has continued to work on behalf of Main Roads’ Term Network contractors to ensure their concerns are addressed. These concerns include the allocation of Minor Improvement Works, performance indicators and database requirements, impact of changing traffic management requirements and environmental regulations, and non-feasance protection.

Steady progress continues to be made with Main Roads on these issues.

CCI has also continued to work with contractors affected by the roping in of a wide range of building-related contractors under the umbrella of the Builders Registration Board. CCI will continue its endeavours to ensure more appropriate arrangements can be established for the future. 

CCI is actively participating in the WA Manufacturing Industry Consultative Council established by the State Government, as well as the various working parties established by that Council.

In addition CCI gave a presentation to the Oil and Gas Summit Forum and is a member of the Oil and Gas Industry Coordinating Council established following the Forum.

At these forums CCI has continued to stress the mutual benefits to suppliers and projects owners of full fair and reasonable opportunity for local industry and the important role of Industry Capability Network WA (ICNWA).

Local industry is facing difficulties in winning work on major projects due to continuing trends towards centralisation of engineering into global centres of excellence and global sourcing and the utilisation of pre-assembled units.

As a result CCI has also continued to stress the importance of local industry accessing global supply chains and reciprocal international arrangements on standards, as well as the importance of the Australian Marine Complex and high wide load corridors in meeting the challenge of pre-assembled units.

CCI was also involved in the development of the Building Local Industry Policy, which reaffirms the State Government’s commitment to the Australian Industry Participation National Framework (as agreed between Commonwealth and State Governments) and cements the role of Australian Industry Participation Plans.

Skills shortages are also having an adverse impact on local industry’s ability to win work on major projects. CCI continues to argue that industry needs to be able to access discretionary training funds in a more responsive and timely fashion, and have flexibility within apprenticeships. There is also a need to more readily access overseas skilled persons both on a permanent and temporary basis.

The need for the establishment of a network of high wide load corridors linking the metropolitan area to the regions has again been confirmed with the release of two further CCI reports.

These studies revealed that the existing corridor between Henderson and Kwinana is an outstanding success and underlines CCI’s concern over the lack of progress on the other much needed corridors, despite CCI first proposing the need for this corridor network in 1999.

CCI submitted these reports to the State Government in time for consideration for the 2005 / 06 State Government budget to ensure staged development of the network proceeds in tandem with the extension of Tonkin Highway to Thomas Road.

The State Government has unequivocally stated that the change in regulation for pressure vessels in Western Australia does not mean that overseas standards can override or supplant the Australian equivalent for projects in WA. This statement followed concerns raised over the past year by CCI and ICN WA about the potential for misinterpretation of the change in regulation.

The State Government has made a raft of significant changes to the way government procurement is managed, including an increased role for the Department of Treasury and Finance and revisions to State Supply Commission policies.

While these changes open up the possibility of increased savings for government they have raised some concerns with local suppliers. These changes however also provide an opportunity for suppliers to more readily influence change on procurement issues across the whole of government.

CCI has commenced dialogue with government on a number of these issues and is interested in hearing from members on other procurement issues that need to be addressed.

CCI made a submission to the review of State Supply Commission policies calling for greater time to be allocated to similar reviews in the future and for greater documentation outlining the critical issues to be made available earlier about the proposed changes to facilitate more informed debate.

CCI will also be seeking a review of the WA Government’s procurement policy under which government purchasing was centralised. To test whether or not the anticipated savings and efficiencies have been achieved, CCI wants an audit of procurement spending which takes into account the wider costs incurred by government agencies as a result of purchasing decisions, not merely on tender prices alone.

CCI’s IT, E-Commerce and Business Services Committee has been renamed – the ICT Committee – to more appropriately reflect its activity.

The Committee has continued to stress the importance of outsourcing of government work to facilitate local ICT development in its submission to the WA ICT Industry Strategy – Enabling Future Prosperity. It also emphasised the importance of clearly signalling in advance any new procurement initiatives to give local businesses the opportunity to adjust to these new arrangements.

The Committee is now also addressing the most appropriate means of minimising costs to government and industry of ICT tender processes and the importance of appropriate risk allocation in government contracts.

The Committee has continued with its assistance to the Schools and Industry Pilot for Information Technology (SIPIT) project, which provides the opportunity for secondary students studying Information Systems to work in teams to solve IT problems submitted by business to a website.

CCI’s Capital City Committee has highlighted the importance of the capital city to the vibrancy of the economy, and stressed that the continuing spiral in parking levies within the CBD is working against this objective.

The Perth Parking Levy is a narrowly based tax and disadvantages central Perth retailers and other small business compared with suburban competitors.

The Committee has also expressed concern that while the State Tourism Commission has developed many strategies state and local authorities have not fully grasped the problems in respect of addressing vibrancy of the capital city.

Capital city vibrancy however should not entirely focus on tourism solutions. Strategies designed to improve the capital city vibrancy should also be attractive to locals.  Tourism should not be considered as an extra to the activities of locals enjoying their normal surrounds. Fremantle is a prime example of a region used by locals day to day yet still has tourism attractions.

CCI’s Education and Training Committee has continued its role as a forum for the discussion of education and training issues and offers Committee members the opportunity to provide input into education and training policy.

During the year, the Education and Training Committee has actively liaised with State and Federal Government Departments on initiatives and issues impacting on the education and training system.  These included the WA Department of Education and Training’s proposed strategies for increasing pathways for school leavers, mature age employment and the State Training Board’s Mature Age Taskforce, as well as proposed Commonwealth Government policy proposals, including the implications of the Federal Budget on education and training, and the High Level Review of Training Packages.

The Committee will continue to liaise with State and Federal Government Departments to keep abreast of proposed future directions for education and training, and to ensure a key focus is maintained on literacy, numeracy and generic employability skills for school leavers seeking entry level apprenticeships and traineeships.

CCI has continued to interact with the three school sectors, the Department of Education & Training, the Catholic Education Office of WA and the Association of Independent Schools.  This has enabled a strong industry voice to convey the changing nature of the workforce, workplace requirements and employer expectations.

CCI’s Student Economic Forum challenges top economics students from schools throughout the state to debate topical issues.  In 2004 the intricacies of bi-lateral trade agreements were explored through a hypothetical, with students adopting the interests of designated lobby groups ranging from business, rural, union and community organisations. The values of a free enterprise system were foremost in the debate.

The Schools and Industry Program in Information Technology (SIPIT) continues to link Year 11 tertiary stream students and businesses. This web-based program enables students to address problems with an IT solution posted by business. A key element of SIPIT is that it provides work experience without the need to accommodate students in the workplace.

Following the success of the Transition to Registered Nursing Pilot Program, 2004 saw a second intake of 23 Yr 11 students.  The program has resulted in the award of direct entry place to Curtin University for participants who satisfied academic and other requirements. 

Other initiatives undertaken during 2004 included enterprise education for Year 10 students undertaking Business & Enterprise studies at Penrhos College.  The program promotes group enterprise activities and allocates small business mentors.

A partnership has been established between The WA Police Academy, Edith Cowan University and CCI to provide Strategic Business Management qualifications and experience for senior police.

CCI continues to enhance the links between business and education through the Business and Industry School to Work Alliance (BISWA) arrangements.  Through this activity an employer view has been maintained on education councils, committees, forums and consultations and education / industry partnerships promoted.