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Hunter Water to sell recycled water plant

THE BOARD of Hunter Water Corporation (Hunter Water) has resolved to explore the sale of its multi-award winning Kooragang Island Water Scheme (KIWS).

Proceeds from the sale will be used by Hunter Water as part of its commitment to invest over $1 billion in new water and wastewater infrastructure over the coming decade.

The KIWS is an advanced water treatment plant located within the industrial precinct of Steel River in Mayfield West which uses a micro-filtration and reverse osmosis process to produce recycled water superior in quality to rain.

Commissioned in November 2014, the plant is capable of delivering up to 3.3 billion litres of highly treated recycled water per annum, which is sold under a long term contract with fertiliser and explosives manufacturer Orica.

Hunter Water Interim Chief Executive Officer Jeremy Bath said the sale would have no impact on the operation of the Plant, on the local water supply or on water prices.

"The KIWS will continue to supply Orica with several billion litres of recycled water each year, regardless of who owns it and so the proposed sale will have no impact on the local water supply. The plant is considered by our pricing regulator to be an “unregulated asset” meaning any costs or income associated with the plant are not considered when determining water prices.

"Selling the KIWS benefits Hunter Water's balance sheet by freeing up capital to invest in the region over the coming decade and will also reduce expenditure on servicing the borrowings associated with its construction.

"Hunter Water intends to invest more than $1 billion to improve infrastructure over the coming ten years as part of our commitment to ensure the region is ready for the population growth forecast over the coming three decades.

"By carefully and selectively identifying assets that free up capital, Hunter Water can ensure we still get the benefits that come with infrastructure such as the KIWS, but without the substantial associated costs.

"The Kooragang Island Water Scheme has the potential to reduce Orica's demand on the potable water supply by up to 5%, effectively increasing Hunter Water’s storage levels by that same amount. It has also substantially increased the percentage of sewage we recycle to around 8% of total wastewater.

"Given the quality of the plant and the rarity of such assets on the open market, I expect there will be a substantial number of interested parties," he said.

Those wishing to register their interest are invited to contact Pottinger on +61 2 9225 8000.

The KIWS is currently owned by Hunter Water, but operated and maintained by Veolia.

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Resource industry bewildered as Senate blocks ABCC legislation

AUSTRALIA’s resource industry is disappointed the Federal Parliament chose not to support the government’s tough stance against union corruption and unlawfulness, with the Senate voting down legislation to restore the Australian Building and Construction Commission (ABCC).

“In the current environment it is beyond belief that the Senate has voted against a more effective industrial watchdog for the construction industry, and more severe penalties for those found to be breaking the law,” says Australian Mines and Metals Association (AMMA) chief executive Steve Knott.

“This sends a very bad signal that our parliament is not interested in cleaning up the unlawfulness and thuggery bringing down one of Australia’s most important industries.

“As the Senate voted against a more effective regulator, the existing FWBC agency launched yet another Federal Court prosecution against the CFMEU, this time alleging two officials forced their way onto a public school construction project, stopped work and coerced employees into signing up to the union.

“Under the current regulator the maximum penalties for such behaviour is $10,200 for an individual and $51,000 for the union. This is less than one-third of the penalties that would apply, at $180,000 for unions and $36,000 for individuals, if the Senate had today voted in favour of the ABCC.

“Australia needs stronger deterrents to stamp out thuggery, intimidation and illegality from our construction sector.  Strong deterrents also have clear economic benefits, with the former ABCC having delivered a 9% productivity increase, reduced industrial action and saved consumers $7.5 billion.”

Mr Knott says it is especially disappointing to see the Senate evenly divided, at 33 votes for and 33 against, on a key aspect of the Coalition’s pre-election policy platform that seemingly has broad community support.

He says continued efforts by the government to restore the ABCC should be supported, and a contingency plan developed to bolster the powers and penalties available to the FWBC.

“AMMA calls on the government to reintroduce this legislation as soon as possible and continue to work with crossbench senators to get it over the line,” Mr Knott adds.

“This may require confidential briefings on any serious cases of criminality, coercion and intimidation uncovered by the Royal Commission into Trade Union Corruption that have not yet been made public.

“If restoring the ABCC with its full former powers turns out to be politically unfeasible, the parliament could instead look to bolster the resources and deterrent penalties of the FWBC.

“With a record number of cases before the courts, the existing agency must be given all the tools it needs to successfully prosecute, penalise and discourage ongoing unlawful behaviour in our construction industry going forward.”

www.amma.org.au

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NBN network to reach 9 million homes by 2018

Comprehensive Corporate Plan details three year targets:

  • 9.1 million homes and businesses ready for service by 2018
  • 4.4 million activations
  • $1.7 billion in annual revenue for FY18
  • Construction set to be complete in Tasmania and Northern Territory

More than nine million homes and businesses across Australia are expected to be ready to connect to the nbn™ network and more than four million to have signed up for an nbn™ service by 2018.

The forecasts are contained in the company’s first comprehensive Corporate Plan, which was published this week.

The introduction of additional technologies, a projected boost to the size of the construction workforce and newly-signed agreements with the construction industry are anticipated to see the total number of premises that are able to connect double over each of the next three years to 9.1 million.

At the end of the period, 4.4 million families and business owners are expected to be active on the network, an eight-fold increase on today. These users are expected to deliver a ten-fold increase in revenue to $1.7 billion.

nbn CEO Bill Morrow said:

“This is a bold plan that puts us in striking distance of our ultimate goal of delivering better broadband to every Australian by 2020.

“The steps we have taken over the past 12 months have already delivered increases in revenue, activations and serviceable premises. The work to date has also given us a more accurate picture of the actual costs of the build.

“This enables us to set the course for the move to the exponential growth of the rollout.”

nbn’s revenue targets are underscored by growing data and usage patterns. According to the Australian Bureau of Statistics, the average amount of data downloaded per month continues to grow: from 5GB per month in FY08 to nearly 60GB today.1 Globally, video traffic online is expected to triple by 20192, with applications extending beyond entertainment to education, e-health and video conferencing for business.

Bridging Australia’s Digital Divide

Mr Morrow said the Corporate Plan estimates an increase in peak funding for the build. However the amount remains significantly lower than the total cost of an all-fibre optic network and the equity contribution of the Government remains capped.

“Upgrading the telecommunications infrastructure for an entire continent will always be an ambitious undertaking. But the risks are outweighed by the benefits,” Mr Morrow said.

“For instance, the rollout is expected to be complete in the Northern Territory and Tasmania during the period of this Corporate Plan. The nbn™ network will be a game changer for these economies and Australia as a whole, enabling greater participation in the global digital economy and helping close the digital divide.”

www.nbn.com.au

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Spring into Brisbane for Pop-Up

THE ever-popular Brisbane Pop-Up business event networking showcase has attracted a record number of exhibitors this year.

Brisbane Marketing General Manager, Conventions and Business Events, Rob Nelson said Brisbane Pop-Up gave business event planners the chance to nurture their knowledge of Brisbane's new, improved and unique business event products.

“Now in its eighth year, we have a record 75 exhibiting event operators in attendance, including hotels, venues and support services,” he said.

"Brisbane Pop-Up offers the perfect opportunity to discover how Brisbane is blossoming with new ideas and experiences.”

Staged by the Brisbane Convention Bureau, Brisbane Pop-Up will celebrate the new season by springing up at City Hall on Thursday 3 September from 11.30am – 2pm.

To register your interest to attend Brisbane Pop-Up, visit http://www.choosebrisbane.com.au/conventions/brispopup-interest

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Unions hold nation-building natural gas project to ransom

AUSTRALIA’s resource industry employer group, AMMA, has warned of the damaging effects strike action at the Gorgon natural gas project could have on Australia’s international reputation as being ‘open for business’.

“This is an irresponsible and reckless action by the unions in urging employees toward industrial action. Industrial disputation is in nobody’s best interest – not the employees or the contractor companies involved,” says AMMA CEO Steve Knott.

“The solution lies in continued good faith negotiations. We encourage the unions to consider the national impacts of striking and choose a more responsible path to resolving the impasse.”

Mr Knott says nation-building projects such as Gorgon have the international spotlight on them, and strike action threatened late in the construction phase is a bad look for Australia.

“At a critical time for Australia’s resource industry, unions are holding to ransom our largest project which employs many thousands of Australian workers and brings other significant economic benefits for the state and for the nation,” he continues.

“Threatening to strike every time an agreement is up for renewal undermines Australia’s reputation as a sound investment destination. It hurts the very people the unions represent as projects and jobs disappear offshore.”

AMMA notes that many of the employees are in favour of the roster, wages and conditions outlined by the employer. Further, certainty over important workplace issues such as established roster arrangements is critical for resources projects both current and in the future.

“It’s important to note, these roles are some of the best paid construction jobs in the world, with many employees earning in excess of $200,000 per annum,” Mr Knott continues.

“The current rosters at Gorgon are commonplace among mega construction projects and the head contractor has genuinely attempted to find an acceptable middle ground.

“From the employees’ perspective, it’s also not as simple as the unions purport. It’s understandable that many seek to retain the current rosters to get the greatest financial reward from their contracts before construction is wrapped-up.

“To dramatically change the working patterns at Gorgon as the project enters the final stretch is unrealistic and further damages Australia’s reputation as a competitive and industrially stable place to invest and build new resource projects.”

www.amma.org.au

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