Issue 61 - 2 June 2009

On 28 May the State Government opened a second geothermal acreage release for 2009. This follows the earlier high level of bidding for a first round of exploration rights in the Perth and Carnarvon basins released last year and re-released in March

The new acreage release covers the onshore south-eastern region of Western Australia, including Albany, Esperance and some Eastern Goldfields mining areas.

Geothermal energy represents potential additional energy sources for the State and key industry operations. It is expected that $560 million will be spent on exploration in the Perth Basin over the next six years.

CCI has long advocated the need for Western Australia to have a broad range of energy supply options, both to improve security and generate competitive pressure which will help to ensure competitively priced energy for end-user customers. Geothermal energy represents a clean and renewable energy source that could play a key role in moving towards this outcome.

Companies bidding for the new acreage release in the south-east region are entitled to bid for multiple areas and would be expected to drill at least one well to a depth of 400m during the first two years of obtaining a geothermal title.

The State Government has also provided $2.3 million for a Geothermal Centre of Excellence to build WA’s capacity and knowledge about exploration and development of geothermal resources.

For further information, please contact CCI senior adviser industry policy Andrew Canion on (08) 9365 7688 or andrew.canion@cciwa.com.

The Australian Health Workforce Ministerial Council issued a communique on 8 May 2009 outlining how the new national registration and accreditation scheme for health professions, due to commence on 1 July 2010, will work.

The main issues on which there has been recent consensus are:

* Accreditation functions will be independent of government and developed by a separate accrediting body or accrediting committee of a national board. Such a body or committee will recommend to the relevant national board the courses it has accredited that meet the requirements for registration. However, the Ministerial Council has powers to act where it considers that changes to an accreditation standard such as clinical placement hours would have a significantly negative effect.

* Both general and specialist registers will be available for those professions where there is to be specialist registration such as doctors and nurses.

* Support for continuing professional development as a requirement for renewal of and on-going registration.

* Extension of the scheme from 1 July 2012 to Aboriginal and Torres Strait Islander health practitioners, Chinese medicine practitioners and medical radiation practitioners.

*Improvements to quality and safety of health services including mandatory reporting of registrants who are putting the public at risk of harm, the application of criminal history and identity checks, student registration and the adoption of a flexible model of handling complaints.

For further information, including the most recent newsletter, see the Health Workforce Australia website at http://www.nhwt.gov.au/index.asp.

The Australian Trade Commission has launched a national seminar series in Perth to link Australian clean technology companies to growing international clean energy opportunities.

Austrade’s national industry manager for clean technology Kerry Rooney said the Clean Technology for the Future Roadshow would help clean technology companies lift their competitiveness, commercialise their technologies and go global.

“Global investment in clean energy reached US$155 billion in 2008,” Ms Rooney said.

“As nations implement policies to address the challenges of climate change, trade and investment in clean energy will play an increasingly important role in building Australia’s future prosperity.

“Australia has the potential to become a world leader in sustainable technologies, creating jobs for Australians in areas such renewable energy, green buildings, energy efficiency and sustainable water technologies.” 

Austrade chief economist Tim Harcourt said the development of Australia’s clean technology industries would play a significant part in Australia’s economic recovery.

"In the post-GFC world industries will be restructured along sustainable lines and clean energy will be a key part of Australia's competitive advantage," Mr Harcourt said.

The seminars will assist small and medium-sized enterprises through a whole-of-government approach to improve awareness of services at federal, state and territory level and help enhance their international competitiveness.

The series will also focus on connecting Australian companies to emerging opportunities in ASEAN and LATAM countries.

“The recent signing of the ASEAN-Australia-New Zealand Free Trade Agreement will encourage greater links and the opportunity for increased trade in clean energy goods and services between Australia, New Zealand and the region,” Mr Harcourt said.

The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, supports the introduction of sound and nationally consistent laws which will help make workplaces safer.

The present system of 10 inconsistent regimes across all states and territories increases compliance costs and burdensome regulation on small, medium and large businesses across the country, without delivering improved safety.

CCI believes a number of technical issues need to be addressed as a matter of priority.

WA businesses are concerned that nationally consistent laws could place additional burdens on their operations. Under the current proposed arrangements, the maximum penalty will increase from $625,000 to $3 million.

Federal and state governments need to walk a fine line to ensure the proposed changes reduce the regulatory burden across the nation, whilst maintaining appropriate safety standards.

Western Australia has a sound occupational health and safety system which has been developed by government, business and unions. Caution is needed to ensure a nationally harmonised system does not undermine existing WA requirements.

CCI supports the Western Australian Government pursuing several important issues for more detailed consideration in the development of a national system. CCI is pleased to be working with the Federal and State Governments to improve workplace safety laws.

Meanwhile, CCI’s director of health, safety and workers’ compensation Anne Bellamy has been appointed as one of only two national business representatives on the Federal Government’s new workplace safety body, Safe Work Australia.

Ms Bellamy brings a wealth of policy and practical experience to the Safe Work Australia Council. She is international recognised as being a champion of improving workplace safety and has for many years been a strong voice for business at both State and national levels.

It is critical that workplace safety be taken seriously by all employers and employees. Business and industry must do all it can to look after their most precious resource – their people.

A new report into the Western Australian electricity market provides further evidence that ongoing reform of the sector is in the best interests of the State.

The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, welcomes the findings of the Independent Market Operator’s (IMO) report into the capability of the State’s electricity generators to meet demand.

The IMO report finds that reform of the local electricity market is already delivering greater competition, encouraging new investment in generation facilities, which over time CCI believes will help drive prices lower.

The IMO has provided further evidence why the State Government should continue the yet to be completed reform process.

Signs are already emerging of greater competition in the electricity market. The report predicts the number of companies generating electricity in the South West of the State will more than double by 2010-11, compared to when the reform process began in 2005.

At the same time, the market share of the State’s major electricity generator, Verve Energy, is projected to decline from 90% in 2005 to around 65% in 2010-11.

CCI believes this reflects the success of the reform process by encouraging new entrants, and strong competition, in the local electricity market.

The Chamber of Commerce and Industry of Western Australia welcomes the State Government’s decision to grant conditional environmental approval for a new gas project in the State’s North West.

Apache’s Devil Creek project, located off the Pilbara coast, will help strengthen the State’s vulnerable energy network by providing up to an extra 220 terajoules of domestic gas per day to the Dampier-Bunbury Natural Gas Pipeline. 

For Western Australia to promote itself as a desirable place to invest and do business, especially during these challenging economic times, it is important that business and industry has access to secure and reliable sources of energy.

CCI believes the decision sends an important signal to current, and potential, investors that Western Australia is open for business, and that the State welcomes projects that will stimulate economic activity, generate wealth for the State and the nation and create jobs.

CCI recognises that Western Australia’s planning and approvals systems are important in helping to ensure the best interests of the State are considered in the development of projects.

Nevertheless, there is room for improvement.

CCI has long advocated the need to streamline the State’s unwieldy planning and approvals processes to promote Western Australia as a preferred destination to do business.

Plans to introduce new federal legislation to establish a national beverage container deposit scheme are nothing more than another unnecessary and costly tax on business and consumers.

The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, is concerned that Western Australia is considering implementing such a scheme, despite there being no clear evidence that it will result in more waste being recycled.

CCI executive director, industry policy Trevor Lovelle said the organisation had long argued against the introduction of a container tax as it had the potential to harm business and industry.

"The tax will increase the cost of doing business as companies will have to not only collect the recyclable goods, and be responsible for their storage, but administer the refunds system," he said.

"Inevitably, the added costs would have to be passed on to consumers.

"Despite costing more, there would be no additional benefit to the environment."

CCI believed that rather than imposing another cost on business and consumers, a greater emphasis should be placed on existing kerbside recycling programs.

Deferring a vote in Federal Parliament on the proposed emissions trading scheme legislation until after the Copenhagen conference in December makes sense as it buys Australia time get the scheme right.

The State’s peak business organisation, the Chamber of Commerce and Industry of Western Australia, believes deferral will also give Australia’s political leaders, and business, the opportunity to gain an important insight into the approach adopted by our major trading partners and international competitors.

We must not waste the time gained by deferral. Government needs to work closely with business to understand the impacts of the proposed scheme and how it can be improved.

The nation’s political leaders need to proceed with caution. On one hand, business and industry wants to remove the uncertainty surrounding the future of the scheme. On the other hand, the right decisions need to be made to protect industry, the economy and jobs.

CCI believes it is prudent to await the outcomes of the Copenhagen Climate Change Conference in December. It can not be left to Australian business and industry to tackle a global problem.

CCI supports the introduction of an emissions trading scheme as a market based mechanism to help address the challenge of climate change, provided Western Australia’s international competitiveness is not undermined.

Latest figures released by the Department of Immigration and Citizenship (DIAC) show that the number of Subclass 457 visa applications received have fallen to a four-year low.

According to DIAC, the number of primary applications lodged in April 2009 was 47% lower than in September 2008 and some 22% lower than in March 2009. Applications lodged in April 2009 were at the lowest rate since April 2005.

The significant slowing in 457 visa applications reflects dampened demand by employers for overseas workers given the prevailing global and local economic climate.

The downward trend in 457 visa approvals has been more pronounced with the total number of temporary skilled migration visas granted in April 2009 64% lower than in September last year and almost 23% lower than in March 2009.

For further information contact CCI Migration Services (MARN 0318589) on (08) 9365 7521 or visas@cciwa.com.

Are you planning to expand offshore or grow your existing offshore presence? Gain practical insights on strategically planning and financing offshore expansion at this free workshop.

Despite the global economic downturn, the 2009 EFIC Global Readiness index shows Australian businesses are still clearly focused on offshore expansion, with 84% planning to expand their existing offshore facilities and 44% of respondents without current offshore facilities planning to establish them. Yet access to finance and effectively managing potentially complex legal and regulatory environments can be a significant barrier to success.

Presenters include:

• Olivia Coldrey, Director, SME Global Financing Solutions, Export Finance and Insurance Corporation
• Geoff Short, Managing Director, Tanda International

They will lead an interactive workshop discussion supported by real life insights from Australian case studies, providing practical stratgeies into planning and financing offshore expansion.

Participant numbers are limited to 25 to provide you with the opportunity to discuss specific issues pertaining to your business.

Date:    Thursday 11 June 2009

Time:    4.30 pm registration for 4.45 pm start. The workshop will conclude at 6.00 pm, with networking drinks to follow.

Venue: Chamber of Commerce and Industry of Western Australia, 180 Hay Street, East Perth

Cost: Free

Registration is required by Thursday 4 June 2009. Email events@efic.gov.au or call (02) 9201 2129 for more information.

Western Australian exporters are invited to nominate for the 2009 WA Industry & Export Awards.

The Awards, now in their 21st year, were officially launched in Perth last week by Hon Barry House MLC, President of the Legislative Council.

To download the information and application kit click here.

EU and US negotiations on beef hormones are likely to lead to the implementation of a new EU tariff quota for beef.

Australia has written to the EU seeking assurance that the tariff quota operates within WTO rules and that it will be available to suppliers on a non-discriminatory basis.

Hugh Borrowman has been appointed as Australia's next Ambassador to Sweden.

Mr Borrowman succeeds Mr Howard Brown who has been Ambassador since March 2007. Mr Borrowman is expected to take up his appointment shortly.

Australia and Sweden enjoy solid trade and investment links, with total trade in goods and services worth $3.3 billion in 2007-08. Swedish investment in Australia was $3.1 billion in 2007.

Australia’s Minister for Foreign Affairs Stephen Smith said the Australian Government looked forward to working closely with Sweden during its European Union (EU) Presidency (July-December 2009) to deepen Australia’s engagement with the EU under the Australia-EU Partnership Framework adopted last year.

The 18th annual edition of the International Trade Handbook, published by the Chamber of Commerce and Industry of Western Australia, is now available.

The 216 page handbook is the only guide written specifically for Western Australian exporters and importers. Chapters include:

• Setting up an Export/Import Business
• Contracts in International Trade
• Australian Import and Export Regulations
• Australia’s Free Trade Agreements
• Exporting: A Practical Guide
• Export Market Development Grants
• Importing: A Practical Guide
• International Trade Finance, Payments and Foreign Exchange Management
• Intellectual Property in International Trade
• Electronic Commerce for Importers and Exporters
• Dispute Resolution in International Trade

There is also a comprehensive glossary of the language of international trade and contact details for all government and private organisations and companies that are able to assist exporters and importers.

Price: $16.50 (CCI Members); $33.00 (non-members), including GST.

If you would like to find out more about how we can help your business contact one of our trade specialists on e-mail: trade@cciwa.com or tel: (618) 9365 7620

A Spanish business forum will be part of the official program for the visit to Australia in June by the King and Queen of Spain.

The King and Queen will be accompanied by a large business delegation of representatives of the following Spanish companies, which operate in key sectors, such as infrastructure, water, energy and defence: 

1. Abengoa SA
2. Acciona Agua
3. Agnitio, S.L.
4. Airbus Military
5. Aqualia Infraestructuras, S.A.
6. Carbongen, S.A.
7. Cía. Espanolanola de Financiació del Desarrollo, Cofides, S.A.
8. Cobra Medioambiente
9. Construcciones y Auxilliar de Ferrocarriles, S.A.
10. Crespi Montes Vich, SLP
11. Grupo Isolux Corsan
12. Hynergreen Technologies, S.A.
13. Indra Sistemas, S.A.
14. Ingeteam Traction, S.A.
15. Innova Desarrollos Informáticos
16. Jaime Santana Investigaciones Cientificas Fibro-Opticas S.A.U.
17. Kinos Vega S.L.
18. Lemonquest Entertainment, S.L.U.
19. Maxam Corp
20. Navantia
21. Ormazabal International Business S.L.U.
22. Patentes Talgo, S.L.
23. Talleres Velilla, S.A.
24. Técnicas Reunidas, S.A.
25. Telvent
26. Union Fenosa S.A. (Union Fenosa-Gas Natural)
27. Valoriza Agua – Grupo Sacyr-Vallehermoso

Western Australian companies interested in attending the forum, which will be held in Sydney, should contact Ms María Gorriti Gutiérrez-Cortines at the Embassy of Spain Trade Commission on (02) 9362 4212 or mgorriti@mcx.es. 

The US has decided to reintroduce dairy export subsides following similar action by the EU.

Australian Minister for Trade Simon Crean has labelled the move protectionist and is concerned that other countries may introduce export subsidies in response. G20 leaders had previously made a commitment not to implement protectionist measures during this time of global financial crisis.

That article indicated that annual leave loading was considered Ordinary Time Earnings under the new superannuation guarantee ruling. We apologise for any inconvenience caused by our error.

To clarify which types of payments constitute ‘Ordinary Time Earnings’ (OTE) for superannuation contribution purposes, please see the revised summary table below:

For members seeking clarification on ordinary time earnings, superannuation and the new ruling please contact the Employee Relations Advice Centre on 9365 7660 or email advice@cciwa.com.

On Friday, 22 May 2009, the Australian Industrial Relations Commission (AIRC) released 50 new draft modern awards for consideration, inviting submissions from interested parties. Of the draft awards, a number relating to the retail sector were issued including the Storage Services and Wholesale Award 2010 and the Vehicle Manufacturing, Repair, Services and Retail Award 2010.

The Storage Services and Wholesale Award 2010 is broadly intended to cover employers and employees involved in dispatching goods and/or preparing goods for wholesale. This modern award is set to replace a number of Western Australian Notional Agreements Preserving State Awards for employers and employees engaged in the industry, including the likes of Shop and Warehouse (Wholesale and Retail Establishments) NAPSA, the Fruit and Produce Market Employees NAPSA, the Commercial Travellers and Sales Representatives' NAPSA and the Clerks' (Wholesale & Retail Establishments) NAPSA to name a few.

Key differences between the relevant WA NAPSAs and the Storage Services and Wholesale Award 2010 can be seen primarily in:

• shift work provisions with the requirement to pay 30% for night shift;
• casual loadings and the introduction of a standard 25% loading;
• ordinary hours being restricted to Monday to Friday only, and;
• part time employee provisions necessitating employers to agree in writing to a regular roster pattern of set hours per day and per week with an obligation to pay overtime for all hours worked outside of the agreed hours.

This modern award introduces a number of classification levels proposing base award rates of pay ranging from $15.34 per hour to $16.87 per hour. The levels are approximately aligned with the Storeman levels in the Shop and Warehouse (Wholesale and Retail Establishments) NAPSA including an additional level for an employee to whom supervisory responsibilities is afforded. In addition, there are a number of new allowances introduced, potentially adding additional expense for employers on the introduction of the modern award at 1 January 2010, or at a later time when transitional provisions cease.

The Vehicle Manufacturing, Repair, Services and Retail Award 2010 is intended to cover all aspects of the vehicle manufacturing industry including post manufacture retail, service and repair of the vehicle. The AIRC indicated this has been done in order to simplify award coverage for operators in the industry by only needing to refer to a single award. In Western Australia, this modern award is set to replace the Motor Vehicle (Service Station, Sales Establishments, Rust Prevention and Paint Protection), Industry NAPSA. Comparatively, service station employees will see a restructure in weekend and shift penalty rates as the key difference. Additionally, the standard 25% casual loading will apply in the modern award. The classifications and corresponding wage rates of the modern award are aligned with the WA NAPSA. 

In the AIRC’s supporting statement on the release of the Stage III modern awards, it was revealed that in most instances the over-riding federal award for the industry was utilised as the basis for drafting. In effect, this has resulted in a number of differentials for W.A. employers with the full cost implications yet to be realised in full.

The AIRC will be accepting submissions from any interested parties in response to the released Stage III modern awards over the period to 12 June 2009. CCIWA will be drafting submissions on behalf of members during this time and encourages interested members to contact the Employee Relations Advice Centre on (08) 9365 7660 or advice@cciwa.com to provide feedback on the draft modern award for their industry.

The Stage III modern awards can be viewed at the links provided by clicking here

The Vehicle Manufacturing, Repair, Services and Retail Award 2010 can be viewed by clicking here

The Storage Services and Wholesale Award 2010 can be viewed by clicking here:

Click here to register or for more information

CCI Construction Services proudly invites industry representatives to WA’s largest and most prestigious annual dinner event for the resources and construction sector.

Individual Registration

Corporate Table Registration

Featuring speakers from a number of Australia’s largest resource companies and industry bodies, CCI’s Resource Conference, WA’s Resources Landscape: Projects on the Horizon, will provide delegates with an insight into the future of WA’s resource landscape and an update on a number of major resource projects currently planned for Western Australia.

Inidvidual Registration

Corporate Table Registration

Planning Minister John Day has tabled in State Parliament two significant Metropolitan Region Scheme (MRS) amendments for the facilitation of a private port at James Point and a new coastal suburb, Jindee, 37km north-west of Perth.

Mr Day said the MRS amendment relating to James Point would facilitate the transfer of a waterways reservation to the industrial zone at the planned port.

He said once this MRS amendment was finalised, James Point Port Pty Ltd would then be required to obtain the necessary statutory approvals for construction and operation of the port.

“The proposed port, to be constructed and operated by James Point Port Pty Ltd, will offer Western Australian importers and exporters a choice of docking facilities and services for bulk goods,” the Minister said.

“The State will provide appropriate transport facilities to support the port and its users and this will also provide benefits to the local industry.

“This is a much needed facility and will have an important economic role for our State.”

The Minister said the proposed port had environmental approval and was subject to wide ranging environmental conditions. James Point Port Pty Ltd would need to ensure that the port was designed and built to meet these conditions and then operate within them.

He said that a later stage could involve the construction of new container facilities which would require a separate MRS amendment. A study regarding the future provision of container facilities was currently being undertaken for the State Government under the auspices of the Transport Minister.

The second MRS tabled by Mr Day would allow for a coastal suburb, Jindee, in the City of Wanneroo, that would provide a regional beachside village of potentially 1,000 homesites.

“This development presents a compact, walkable, mixed-use village that will be pedestrian and cycle oriented,” he said.

“There will also be a range of residential densities allowing for a variety of housing choices and a tourist, lifestyle and entertainment focus.

“It represents the latest thinking in subdivision and suburb design and it will be exciting to see the locality unfold at Jindee.

“The development will create areas of regional open space and preserve sensitive landforms.

One in five international businesspeople believe Australia is the best place to be during the economic crisis according to an international business confidence survey released last week.

Servcorp, the company behind the survey, asked 7,500 international businesspeople from more than 24 nations to identify which countries they believed were surviving the crisis the best.

Australia emerged as the clear leader, with 20% of all international businesspeople citing it as the country that is surviving best, well ahead of its nearest competitors.

The survey was commissioned to understand the current mood, business morale and impact the economic downturn has had on businesses around the world.

Servcorp executive director Taine Moufarrige said in his experience working with international businesses, he had noticed how relatively unaffected Australian businesses and the Australian businessperson’s attitude were by the economic downturn.

"Over 71% of Australian businesspeople believe we are the lucky country and it’s interesting to see that the rest of the world agrees,” he said.

Surprisingly, Australian businesspeople are more worried about the low morale levels in the media than the dismal world economy, with the survey revealing this is the number one concern for Australian businesses in the current economic climate.

Over 25% of Australian businesspeople also cited the way the Australian Government responded to the crisis as a concern for their business.

“I think the doom and gloom reports that Australians hear every day are harmful to Australian businesses and holds them back from seeing the opportunities that are present in the current economic climate," Mr Moufarrige said.

"This is a time when Australian business confidence needs to be supported and encouraged in the media and by the Australian Government.

South Hedland community members should sustain long term benefits from the future development of two residential sites in the town which are aimed to provide additional permanent and temporary accommodation for local residents and workers.

Lands Minister Brendon Grylls said providing a combination of temporary and permanent accommodation would not only address the current short-term and long-term demand but also attract the fly-in fly-out workforce and encourage a more sustainable regional community.

The Minister said two proponents had been selected as the preferred developers, after the expression of interest process  closed.

West End Integration Project consortium which comprises the Compass Group, (Nomad and Hatch) will undertake the land development of temporary workers accommodation, behind the existing Pilbara TAFE building on the north side of town.

AuzCorp will use the land west of the Pilbara TAFE building to create a residential area with both temporary and permanent accommodation.

"The preferred proponents presented a positive, realistic and well balanced approach to the development which demonstrates their confidence in the future of South Hedland", Minister Grylls said.

"Once fully developed both sites will provide infrastructure such as roads, water, sewer, power and improve road connectivity, allowing residents to enjoy more facilities with their families and friends.

"The proposed development will include quality work accommodation, residential development and upgrades of community facilities.”

The Minister said the initiative showed a commitment by the State and local governments to ensuring Crown land was developed effectively and would benefit the broader community during the life of the development and thereafter.

Tender submissions were received and assessed by a selection panel with representatives from the Town of Port Hedland, LandCorp and the Department for Planning and Infrastructure.

The Minister said the Town of Port Hedland was delighted to hear that the project was progressing and soon be able to provide essential accommodation for temporary workers and permanent community members.