VICTORIA'S obtainment of the rights to host the Australian leg of the International Champions Cup for another three years is further validation of Melbourne’s standing as a global sporting leader, said the Victoria Events Industry Council (VEIC).

"It is positive that the outstanding work of Victoria’s tourism and events industry has been rewarded with the significant extension of the rights to host this prized and internationally sought-after competition," said VEIC Chief Executive Dianne Smith.

The extension was announced today by the Hon. John Eren MP, Minister for Sport, Tourism and Major Events, and is worth more than $150 million to Victoria’s economy.

The announcement follows three successful and highly-attended matches between some of the world's most decorated and high-profile clubs in Real Madrid, Manchester City and AS Roma.

"VEIC will continue to work with government and operators throughout the state to make sure the benefits of these significant opportunities for tourism businesses are capitalised on," said Ms Smith.

The Victoria Events Industry Council (VEIC) is the peak body for Victoria’s events industry, providing one united industry voice.

Major Events contribute $1.8 billion to Victoria’s economy every year, creating jobs and underpinning Melbourne’s status as one of the global sporting capitals and the World’s Most Liveable City.

vtic.com.au

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THE Senate Economics Reference Committee will today hear how innovation holds the key to the future of manufacturing and a great number of jobs, in a presentation by medical device manufacturer Cook Medical Australia.

The Committee is in Brisbane to hear verbal submissions for the Inquiry into Australia’s Innovation System and Cook Medical will be one of two manufacturers to share their insights. The submission will be made by Mark Muller, Director of Finance – Cook Medical Asia Pacific.

“It’s our strong view that innovation and manufacturing are inextricably linked. However, the precarious state of Australia’s manufacturing industry, struggling with comparatively high taxes, high labour and operating costs, is of particular concern for the future of Australia’s innovation system." explains Mr Muller.

“We will share these concerns with the Committee and implore them to take action. To maximise Australia’s capability to innovate and to become a knowledge-based economy, there is a need for structural change within policy frameworks to attract business and commercialisation of our innovations back to Australia. Without this, the intellectual property, manufacturing and all the associated jobs will leave our shores. It’s the Australian future for companies like Cook Medical.

“The Government must do something to help the retention of domestic manufacturing and industry. Our recommendation is to consider the implementation of a ‘patent box’ style tax incentive for Australia, specifically a model that would provide a reduction in the tax payable on profits derived from the commercialisation of qualifying IP in Australia (either via licensing or manufacturing and sale of products incorporating qualifying IP),” said Mr Muller.

Under the model, termed the Australian Innovation & Manufacturing (AIM) Incentive, qualifying IP profit would be taxed at the lower rate with the standard corporate tax rate to be applied to other income. This would ensure Australia benefits from investment in any R&D by encouraging companies to locate all activity associated with the development, manufacture and exploitation of that IP within Australia, which would support the full spectrum of industry sectors.

Adding to the IP retention issue is that, R&D Tax Incentives such as the one Australia implemented are now recognised globally, with 30 countries, including the top 10 global manufacturing countries also offering similar frameworks.

Cook Medical Australia was established in 1979 and has grown to a headcount of over 500 people at their headquarters in Eight Mile Plains where its headquarters are based.

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WITH China as Australia’s largest trading partner, a round of public hearings to examine the costs and benefits of the proposed China-Australia Free Trade Agreement (ChAFTA) will begin next week.

The Treaties Committee will commence hearings on Monday 27 July in Brisbane. The second hearing will take place in Sydney on Friday 31 July to be followed by hearings in Canberra, Melbourne, Perth and Tasmania.   

China provides Australia’s largest agriculture and fisheries market and biggest export market for resources, energy and manufacturing. Chinese investment in Australia has grown strongly in recent years and the country is Australia’s largest services market as well.

The Agreement is expected to eliminate or significantly reduce tariffs on a wide range of Australian goods exports including beef, dairy, sheep meat, wine, horticulture and energy and resource products. It also delivers China’s best services commitments to date, including the provision of new or significantly improved market access for financial, legal, education and health and aged care services.

Committee Chair, Mr Wyatt Roy MP, said that Australia’s free trade agreements are intended to reduce barriers to trade for Australian producers and exporters.

“However, the committee understands that there are some serious questions regarding the impact of these agreements on the broader economy and it is interested in hearing from a range of witnesses on the possible positive and negative aspects of implementing this agreement,” he said.   

Public Hearing: Monday 27 July 2015,
Level 6 Mediation Room 2, Commonwealth Law Courts 119 North Quay, Brisbane

12.30pm Queensland Seafood Industry Association
Queensland Seafood Marketers Association Inc
1.10pm Packer Leather
1.50pm HopgoodGanim
2.30pm ThomsonAdsett
3.10pm Close

Public Hearing: Friday 31 July 2015,
Macquarie Room, Parliament House, Macquarie Street, Sydney

9.30am Council of Private Higher Education
10.15am Australian Fair Trade Investment Network
11.00am Financial Services Council
11.45am Australian Red Meat Industry
12.30pm Lunch
1.30pm Private individual
2.15pm Blackmores Ltd
3.00pm Communications Electrical Plumbing Union
3.45pm Close

The hearing will be broadcast through: www.aph.gov.au/live
Hearing programs, copies of the treaties and submissions received can be found at: http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties  Alternatively, email This email address is being protected from spambots. You need JavaScript enabled to view it. or phone (02) 6277 4002.

RISING employment costs hampered business trading performance over the June quarter, according to the VECCI - Bank of Melbourne Survey of Business Trends and Prospects released today.

Wages growth was a driver of this rise, as it remained widespread in the June quarter 2015 with a net balance of 18 per cent of respondents reporting an increase. Wages growth is forecast to accelerate in the September quarter 2015, with a net balance of 30 per cent of respondents expecting a rise.

With little change in selling prices and higher operating costs, business profitability was under pressure with a visible weakening in profits over the quarter. A net balance of 18 per cent of businesses reported declines; a 10 percentage point deterioration compared to the previous quarter’s result.

Not surprisingly, the quarterly survey of nearly 500 businesses across seven major industry sectors also found that employment levels were adversely affected by the general weakness in profits and rising cost pressures. Over the June quarter, a net balance of six per cent of surveyed firms reported a decline in employment.

Exports, which had performed strongly in the previous quarter, eased in the current quarter; as did trends in buildings and structures investment. Encouragingly, a rebound in export activity is forecast over the next three months.

Sales, which were relatively flat during the June quarter, are also expected to recover over coming months.

“Cost pressures are an increasing headwind to Victorian business growth,” said VECCI Chief Executive Mark Stone.

“More must be done to reduce the employment cost burden on business by lifting the payroll tax threshold, reducing WorkCover premiums and reforming penalty rate structures.”

Bank of Melbourne Chief Executive Scott Tanner said, “While businesses are still uncertain about conditions in the Victorian economy, there were some encouraging signs for the outlook with confidence emerging.

"Stronger household and business balance sheets, coupled with low interest rates and a weaker Australian dollar, should put growth and investment plans back on the agenda for businesses when the right opportunities arise.”

The outlook for the Victorian economy weakened slightly in the June quarter, with 15 per cent of respondents anticipating improved state economic conditions in the year ahead, compared to 17 per cent in the previous quarter.

The outlook for the Australian economy mirrored results from the previous quarter, with 18 per cent of respondents expecting stronger growth over the next 12 months. 

VECCI & Bank of Melbourne partnership 
VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly Survey of Business Trends and Prospects, Business Leaders event series and Women in Business event series. The partnership builds on both VECCI’s and the Bank of Melbourne’s mutual goals in supporting businesses in Victoria.

Background – About VECCI
The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

Background – About Bank of Melbourne
Bank of Melbourne is investing in Melbourne and regional Victoria. Since re-launching in July 2011, the bank has tripled its workforce, opened 100 branches and become even more involved in the local community. The bank partners with the organisations and events that matter to Victorians. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.

www.bankofmelbourne.com.au

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