AUSTRALIANS turned to retail therapy to counter feelings of loneliness or to stave off boredom and anxiety caused by the COVID-19 lockdowns, a new report by Monash University researchers has found.

As the pandemic restrictions adversely affected the mental health of many Australians, research by Monash Business School’s Australian Consumer and Retail Studies (ACRS) node found people turned to their wallets to help them cope during those uncertain times.

Findings of the latest report, found more than two-thirds of Aussie shoppers felt moderately to a great deal happy, in control and experienced a level of normalcy when shopping for non-grocery products.

More than 55 percent of shoppers said they did not feel lonely, stressed or bored while shopping for non-grocery retail products.

This year, Aussies bought the most of clothing, footwear and accessories (59%); homeware and hardware (45%); and personal care products, such as cosmetics and baby care (37%).

A higher proportion of women made purchases in clothing, footwear, and accessories (70% to 48% men) and personal care (48% to 25% men).

Unsurprisingly, at the supermarket checkout, Aussies stocked up big on toilet paper, tissues and paper towels (14%); pasta and noodles (13%); cleaning supplies (12%); frozen foods (11%) and sanitisers and soaps (10%). The biggest stocked piled grocery items were canned goods and soups (15%).

And while delivery timings of online purchases were a pain-point in 2020, with 38 percent of shoppers reporting that delivery times were worse than the previous year, overall the retail experience of online shopping was viewed as being better than the previous year (25%) and so too was customer service online (21%).

To understand the effect COVID-19 has had on the retail industry and Australian shoppers, Monash Business School’s Australian Consumer and Retail Studies (ACRS) has been conducting a monthly shopper pulse survey since September 2020.\

The report, containing feedback from nearly 5,000 shoppers across Australia, highlights the fluctuating retail trends and the out-of-the-ordinary purchases made on certain products because of the COVID-19 pandemic.

“Those surveyed said they rushed to the shops to stock up on those goods because they wanted to ensure their family/household was taken care of, they expected disruptions to supply chains, and they expected to spend more time at home and wanted appropriate products,” Stephanie Atto, principal research consultant at the ACRS, said.

“Similarly, Australians also made a number of out-of-the-ordinary purchases because of COVID-19, including casual/loungewear (12%), sports clothing and shoes (8%); face/body care (9%) and haircare (7%); as well as household items for cooking and baking (7% and 6% respectively) and drinks appliances, such as coffee makers (6%).”

Aussies also binged on subscriptions to online movies and TV platforms, such as Netflix, Disney+ and Stan (8%), bought new laptops/tablets (7%) and smartphones (6%), and stocked up the home gym with weights and exercise balls (5%).

However, shoppers were most concerned about being COVID-safe while shopping in store for essential items.

Shoppers agreed that most retailers introduced appropriate safety measures (84%), acted in the interests of their customers (77%), and made it convenient for customers to shop with them (76%).

As small businesses struggled and many closed their doors, shoppers said they would do what they could to support the Australian retail industry, with many expected to shop more for products that are locally produced (61%).

Aussies are also expected to be more conservative with their spending (58%) and will seek out sales or special deals (66%) in the future.

“Although we can’t know exactly what the next year will bring, this year has demonstrated the need for a seamless connection between the physical store, online offerings and improved technology integration into the retail experience. We can also expect some of the shopping behaviours that have changed this year to continue into the future,” Ms Atto said.

To read the more detailed article, visit Monash Business School’s Impact.

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THE Australian Parliament’s Agriculture and Water Resources Committee has published its report Growing Australia: Inquiry into growing Australian agriculture to $100 billion by 2030.

The committee’s inquiry considered how the Australian agriculture could reach the target set by the National Farmers’ Federation to grow the sector to a farmgate value of $100 billion by 2030.

The Committee Chair, Rick Wilson MP, described this target as ambitious but achievable and noted that "Australian producers have a strong track record of taking advantage of economic opportunities and delivering productivity growth over the long-term.

"Australian farmers have consistently identified and embraced new technologies and techniques that can improve their businesses. This innovative mindset makes our producers well placed to benefit from the digital technologies that are rapidly becoming central to the process of farming," Mr Wilson said.

Mr Wilson also highlighted the importance of exports to the sector, stating,  "There is perhaps no issue that will affect the trajectory of Australian agriculture more than our ability to expand and diversify our export markets.

"The quality of Australian produce is recognised globally, and to take advantage of this reputation we must continually look for opportunities to expand into new markets, as well as seek productivity improvements that allow our producers to remain ahead of the game in competitive international markets," Mr Wilson added.

The report includes recommendations aimed at promoting adoption of innovative new technologies, developing a national biosecurity strategy, increasing export market access for Australian producers, and attracting young people to undertake a career in agriculture.

The report can be found at the inquiry website.

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THE Australian Workers’ Union (AWU) has welcomed the Federal Government’s support package for Australia’s fuel refineries and has called for BP to be pulled into line so Western Australia can retain its fuel refining capacity as well.

The Federal Government’s package offers Australia’s under-pressure refineries some relief in exchange for a commitment to stay operational for the next decade.

AWU national secretary Daniel Walton, who led a delegation to Canberra this month to push for refinery support, said the package showed Australia can and should retain its fuel refining capacity.

“On behalf of the thousands of AWU members who refine fuel in Australia I commend the government for listening and for acting. Today’s announcement is a hugely important step,” Mr Walton said.

“Being able to make our own fuel is a critical sovereign capability. Without it, we are completely at the mercy of trade routes that are threatened by potential international conflict or pandemics.

“The Federal Government has done the right thing here by recognising the national interest and doing a deal that create a path for our fuel refineries stay open.

“Obviously the industry is highly dynamic and we will keep working with our members, employers, and the government to ensure these policies are continuously reviewed and calibrated to ensure Australia retains its fuel refining capacity.”

Mr Walton said the package underscored why BP’s decision in October to shut the Kwinana fuel refinery in WA should not be accepted.

“BP claims it has to shutdown Kwinana, but the reality is it’s just a preference based on the company’s commercial interest. There is absolutely no reason BP cannot continue operating Kwinana profitably with these support measures in place,” Mr Walton said.

“Our governments can’t allow BP to completely call the shots on what is a crucial sovereign capacity.

“Our leaders should put a hard choice to BP: either keep Kwinana running as a fuel refinery or hand it over to someone who can.”

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“THE Institute of Public Accountants (IPA) continues to advocate for consumer access to competent and affordable financial advice, and accordingly we welcome the recent round of reforms to the sector,” IPA chief executive officer, Andrew Conway said this week.

“The recommendation of the Hayne Royal Commission to establish a single, disciplinary body for the sector makes good regulatory sense and forms part of the reform agenda to streamline regulation in the longer term.

“It was not unexpected that this recommendation would involve rationalising the numerous regulators and standard setters which operate in the financial advice sector, and who are at times in conflict with each other. Winding up FASEA was always going to be an option. 

“However, whilst the IPA welcomes reform and rationalisation, we urge the Government to ensure that Treasury and ASIC are well supported and funded to take over the standard setting and administration functions currently performed by FASEA. Regulation is dependent on proper execution. 

“The IPA has been a long-time advocate of adequate funding for ASIC, which is even more critical given these additional functions. 

“The IPA is also keen to work with ASIC and other stakeholders on ongoing reforms, including in response to ASIC’s consultation paper (CP 332)  which seeks to improve consumer access to affordable advice by addressing the impediments which currently prevent this. 

“We look forward to the next steps and working with Treasury and ASIC to reach the common goal of protecting the consumer interest through the provision of reliable and affordable advice in the future,” Mr Conway said.

www.publicaccountants.org.au

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A MARITIME POLLUTION incident in Port Phillip Bay this week, involving diesel spilling overboard during refuelling operations, appears to have been caused by the use of inexperienced foreign seafarers who had been flown into Australia to replace the vessel’s local crew.

The incident occurred when the new crew were attempting to refuel the MMA Coral, an offshore supply ship operated by MMA Offshore, for the first time after replacing the Australian crew last week.

Authorities, including the Australian Maritime Safety Authority, Environment Protection Authority, and Port of Melbourne, are investigating the spill, which occurred shortly after 11am on Wednesday.

The Maritime Union of Australia said the previous crew of Australian seafarers had disembarked at Barry Beach Marine Terminal, in Gippsland, before the vessel was sailed to Melbourne by a group of foreign seafarers to refuel ahead of a planned voyage to Karratha in Western Australia.

“This significant environmental incident was the direct result of skilled Australian seafarers being replaced by a less experienced foreign crew that was unfamiliar with this vessel,” MUA Victoria Branch Secretary Shane Stevens said.

“Thankfully, our members onboard the refuelling barge immediately halted the transfer of fuel once the spill was spotted.

“They believe the spill occurred because the crew of the MMA Coral instructed for the fuel to be pumped at too high a pressure due to a lack of knowledge about the correct procedures for the ship.

“While the refuelling operation was meant to involve the transfer of approximately 200 tonnes of fuel onto the MMA Coral, the spill thankfully only involved a minimal quantity due to the quick thinking of the crew of the refuelling barge, who spotted the spill and immediately halted operations.

“This incident, and the significant environmental damage it could have caused, would have been prevented if skilled Australian seafarers with an intimate knowledge of the MMA Coral were still onboard.

“The MMA Coral remains in Port Phillip Bay, and still needs to take on approximately 100 tonnes of fuel ahead of its departure for Karratha, so there remains a need for vigilance to prevent a repeat incident.”

MUA assistant national secretary Ian Bray said the incident was just the latest to highlight the environmental, safety and biosecurity risks posed by using foreign seafarers to undertake coastal trading operations in Australian waters.

“This vessel was sailing between Australian ports, operating entirely in Australian waters, so should have been crewed by Australian seafarers with the skills, training, and knowledge to safely operate the vessel,” Mr Bray said.

“Instead, in an apparent cost-cutting exercise, MMA Offshore flew a team of foreign seafarers into Victoria — in the midst of the COVID crisis — to replace the Australian crew onboard the vessel.

“The fact that the very first refuelling undertaken by this replacement crew caused a diesel spill into Port Phillip Bay highlights how the Australian environment is put at risk by this approach.

“The Australian Government needs to stop providing temporary licenses and travel exemptions to shipping companies to allow them to utilise foreign seafarers on coastal shipping routes, and instead protect local jobs, safety, and the environment by insisting they utilise skilled Australian crews.”

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THE Tasmanian caravanning industry risks a bleak summer despite Australians embracing caravanning and camping in other states as they emerge out of lockdown and borders start to re-open.

Recent data released by Caravan Industry Association of Australia regarding November caravan park accommodation shows Tasmania is the worst performing caravanning destination for the month with falls of 40 percent on last year.  This was at a time when overnight rates for cabin accommodation also saw the greatest decrease of any state.

While consistently in the top three desired caravanning destinations in the country, Tasmania is missing out on the V-shaped recovery as states clamber to attract or retain Victorians looking to re-engage with drive-based holidays.

Bass Strait continues to be the single biggest impediment to the Australian caravanning community flocking to the island, with the local market still slow to recover and get out and see some of the magnificent natural features that the state has to offer.  Calls for Federal Government support to extend the Bass Strait Passenger Vehicle Equalisation Scheme to include free travel for cars and caravans are echoed by the peak national body for the industry.

Caravan Industry Association of Australia CEO, Stuart Lamont said, “Passengers who arrive by the Spirit of Tasmania stay longer, spend more and disperse further, supporting not only Tasmania but also stimulating the Victorian industry as well.

“The Passenger Equilisation Scheme is meant to normalise the costs of travelling on the water as if it was part of the road network, with the government saving millions of dollars as Bass Strait has been largely closed during COVID with border closures between Victoria and Tasmania.

“The government must act quickly to save Christmas for many local caravan park operators who are already struggling to survive and whose pipeline bookings are much softer than they should be for this time of year,” Mr Lamont said.

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THE Retail Supply Chain Alliance unions -- the AWU, TWU and SDA -- are demanding a Royal Commission into the exploitation, wage theft and abuse "that is rife across Australian farms" in the wake of another explosive new report into the Australian horticulture sector. 

The McKell Institute report, Blue Harvest, focused on blueberry pickers in the Coffs Harbour region, where thousands of backpackers flocked in search of farm work during coronavirus lockdowns in 2020.

An investigations team traversed the mid North Coast, gathering data and stories from blueberry workers employed during the 2020 picking season. Some were paid as little as $4 a bucket to pick low-quality fruit, while others earned just $3 an hour -- well below the award rate of $24 an hour.^[1] Others described common employment arrangements where accomodation, transport, food, and even vital equipment like gloves and berry containers had to be bought directly from farm-owners, reducing daily earnings.

The report also investigates how many workers are recruited by fly-by-night labour hire companies which use Facebook, WeChat and Gumtree to falsely promote fruit-picking as highly paid, fun work.

Retail Supply Chain Alliance spokesperson, AWU national secretary Daniel Walton, said after years of hand wringing, inquiries and reports, it was time for action.

“This shocking new report can be added to the mountain of research indicating that Australian farms have become a hotbed of wage theft, exploitation, and worker abuse. It’s not just Coffs Harbour either – pick a spot on the map, and you will find outrageous exploitation. ” Mr Walton said. 

“It’s about time David Littleproud (National Parfty deputy leader) woke up and took some responsibility for the sector he’s supposed to be in charge of. Under Mr Littleproud’s watch, Australian farms have developed an addiction to illegality and a domestic and international reputation as a place where you are likely to be ripped off or worse," Mr Walton said. "The Minister needs to stand up and announce his support for a Royal Commission urgently. 

“This idea that exploitation is limited to a few bad apples needs to be done away with. This is a sector defined by and built on illegality. By turning a blind eye, the government has created a system of rules and structures that rewards labour abusers and punishes those operators doing the right thing. We’d like to see good farmers stand with us and call out the bad operators, rather than staying silent and let the rip offs continue.

“It doesn’t need to be this way. There are developed nations that produce abundant horticultural exports without relying on labour exploitation to subside their product. Australia needs to decide if we want to take the ethical, high-productivity route or the unethical, labour exploitation route. To inform this decision we need a root and branch examination of the sector and a Royal Commission is the ideal vehicle."

Australian workers becoming victims

Natalie Trigwell, a picker featured in the report, lost her Northern Rivers home in the bushfires and decided to take up farm work in Coffs Harbour region.

“I packed everything in the campervan and headed off berry picking, just out of sheer desperation. I went down there and found that I was earning $15-20 per day,” she said. 

McKell Institute policy director Edward Cavanough said the backpackers he spoke to felt intimidated and “powerless to complain”.

“These foreign workers are often aware they are being exploited, but feel frightened and uncertain about making formal complaints,” Mr Cavanough said. 

“Those who do complain often face hurdles like language barriers and bureaucratic delays which means their allegations are never investigated.”

Key findings of the report

• No worker shortage in Coffs Harbour 

The COVID-19 outbreak actually increased numbers of migrant workers (mainly Working Holiday Makers) to around 2000 in the Coffs area during the study. 

• The rapid growth of industry has led to bad behaviour

An increase of blueberry farms over five years has resulted in an influx of labour-hirers who exploit anabundance of short-term workers.

• Backpackers are being set up for exploitation

Tourists on the Working Holiday Maker visa wanting to extend their stay are vulnerable to underpayment, because of rules requiring them to work 88 days in regional Australia.

• Wage theft is a business model

Some workers have alleged gross underpayments as low as $3 an hour, orchestrated through the systemic abuse of piece-rates.

The McKell report also outlined a range of simple reforms including a crackdown on rogue recruiters, stronger penalties, greater enforcement from workplace investigators, reforms of Australia’s visa schemes and new laws to ensure farmers are required to pay a minimum hourly rate.

The Australian Workers’ Union, the Transport Workers’ Union, and the Shop, Distributive and Allied Employees' Association, jointly funded the investigation through their Retail Supply Chain Alliance. The Alliance believes the issues uncovered in Coffs Harbour is a mere microcosm of the industry where everyday workers harvesting grapes, berries, flowers, vegetables and fruits are systemically underpaid.

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AUSTRALIA must increase incentives for venture capital as well as research and development to boost the economy and employment, according to Stoic Venture Capital partner Geoff Waring.

Dr Waring said more needed to be done to attract investment in venture capital and research and development.

Dr Waring pointed to recommendations outlined in the Senate Select Committee on Financial Technology and Regulatory Technology’s recent Issues Paper which highlight the critical role research and development, foreign investment and talent play in growing our economy.

“This insightful paper stresses the importance of attracting investment and channelling it towards long-term drivers of our economy including venture capital and research and development,” Dr Waring said.

“Programs such as the Business Innovation and Investment Program and the Global Talent Visa program provide millions of funding that is allocated to venture capital.

“We are in a competitive global market for entrepreneurial talent and capital. Australia must highlight its advantages over competing countries. Accessing global talent and capital will help Australian start-ups to grow into next generation business and employment powerhouses.

“This creates a virtuous circle, where success attracts more talent and capital.”

Dr Waring said the most successful national technology programs combine public research with private industry.

Stoic Venture Capital brings private capital to public research. Stoic is the Co-Investment Fund of Uniseed, a commercialisation fund which focuses on financing early-stage companies that emerge from Uniseed’s member universities.

“We must provide more incentives to attract and retain founders as well as growing technology companies in Australia,” Dr Waring said.

“We encourage the Australian Government to increase the amount required to be allocated to venture capital under the BIIP. Venture capital has higher public returns than other asset classes and is a differentiator compared to other countries’ visa programs without this option.

“This will help Australia develop the economic benefits of next generation innovations from universities, which include high paying jobs and new industries that spring from novel intellectual property.”

About Stoic Venture Capital

Stoic Venture Capital provides financing for early-stage companies, particularly those arising from university research. Stoic is unconditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) and takes a collaborative approach to investing in the highest potential companies. Atlas Advisors Australia AFOF is the major limited partner for the Fund. www.stoicvc.com.au

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