THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has commended Lex Greensill for following through on his promise not to provide supply chain finance to late paying businesses.

“We welcome Greensill’s public statement today, reiterating its position that it will not allow its supply chain finance facilities to be used by Australian clients which extend payment terms to SME suppliers beyond 30 days,” Ms Carnell said.

“Greensill has also confirmed it will discontinue the use of supply chain finance facilities who misuse its products by pushing out payment terms.

“It is clear from media reports this week, Greensill’s statement is in relation to its dealings with contractor UGL, owned by construction firm CIMIC.

“UGL has reportedly extended its payment terms to its small business suppliers to 65 days from the end of month the invoice is lodged, offering supply chain finance to those that want to be paid earlier and are willing to take a discount on the invoiced amount," Ms Carnell said.

“This is an example of clear misuse of supply chain finance as outlined in our recently released Supply Chain Financing Review. Practices such as this are harmful to small businesses, especially in the current challenging environment.

“As recommended in our final report on our Supply Chain Financing Review, federal legislation requiring small businesses to be paid in 30 days is the only way to drive meaningful cultural change in business payment performance across the economy," she said.

“Last year the Prime Minister said the government would introduce a rule requiring businesses with commonwealth contracts to pay their suppliers within 20 days. That’s certainly a step in the right direction and can’t happen soon enough. 

“In the meantime, large businesses extending or in some cases suspending payments to small businesses are on notice that this behaviour is unacceptable and may rule them out of future federal government contracts.”

www.asbfeo.gov.au

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THE CARAVAN industry can drive and lead the road to recovery for domestic tourism, with more than 710,000 recreational vehicles (RVs) set and ready to go.

The recent release of April 2020 Caravan Park Accommodation figures shows a devastating blow to the industry with $208 million in losses for April.  

Across Australia in the past month alone, COVID-19 response measures have cost the industry over $208 million and this figure is further inflated by the loss of expenditure that would have been generated by regional tourism and thousands of small businesses.  

It also proves the important role caravan and camping trips would normally play for Australians over Easter and Anzac Day long weekends.  

Over Easter alone, an estimated 300,000 Australians had their camping trips cancelled, a significant group that deliver direct investment and life into regional Australia.

This revenue has been stripped out of the hands of mum and dad operators throughout the country.  

Accommodation data for April 2020 indicates that the caravan park sector, as expected, has been decimated by the COVID-19 crisis.

Caravan park revenue in April across Australia suffered a 90 percent decline from April 2019, which equates to $208 million in revenue lost for the month.

Occupancies fell by 75 percent in cabins and 82 percent in powered sites, and fell a further 89 percent in unpowered sites.

Daily rates across the states also fell, leading to Revenue per Available Site being $12 for Cabins, $2.70 for Powered Sites and $0.59 for Unpowered Sites.

All States were impacted, however the revenue reductions were worst in NSW, where caravan parks revenues decreased by 95 percent compared with April 2019.

Best placed to drive and lead the road to recovery

There are more than 710,000 registered RVs waiting to holiday and stimulate the market.  With over 18 million Australians indicating they are connected to the caravan and camping lifestyle, this presents an unrivalled opportunity to be active in market quickly as soon as the time is right.  

The potential of the camping sector with its significant interest and audiences puts it uniquely suited to stimulate domestic tourism and provide a lifeline to the thousands of tourism businesses eagerly awaiting a return to business.

The Caravan Industry Association of Australia is calling on all levels of government to consider the caravan and camping industry as part of the solution, to lead the way on the road to recovery of the domestic tourism industry in Australia. 

This includes the consideration of Caravan Parks as facilities which can accommodate independent travel in a manageable way, allowing for travellers to get back on the road and spending again as soon as possible to help rejuvenate regional communities who are seriously hurting.  

Industry product is uniquely suited to independent trips whereby self-reliant facilities are onboard vehicles such as bathrooms, showers and kitchens and cabin style accommodation is self-contained.

The diverse eco-system of the caravan and camping industry means that it will be resilient through this time and be ready to offer Australians the self-reliant, 'back to basics' experience on short notice when the time is right. 

www.caravanindustry.com.au

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MASTER  Builders Victoria and the CFMEU Victoria and Tasmania (Vic/Tas) -- along with employer associations Master Plumbers, Neca, CCF, PPTEU, ETU and the AMWU -- have formally written to Victorian Premier Daniel Andrews calling for a 'trial of easing restrictions in addition to the deliverance of new stimulus' to ensure the protection of the building and construction industry.

The United Group’s proposal comes in light of new modelling conducted by Master Builders Victoria, which prefaces that if current restrictions continue, productivity losses could result in an estimated annual fall of over $6 billion in activity across the building and construction sector, compared with 2018/19, with a further $2 billion reduction in property related Victorian State Government revenue.

As the Victorian Government contemplates easing restrictions, the group has highlighted the successful manner in which the industry has put in place measures to ensure the safety of all construction workers, proving the ability to keep workers safe during this time.

The proposed alleviation of restrictions comes as the group looks to the planning and strategising of returning the industry to increased production as soon as possible whilst not compromising or retreating from the primary responsibility of safety.

Master Builders Victoria CEO, Rebecca Casson said, “The building and construction industry has proven the ability to deliver its essential work while following strict physical distancing and hygiene routines. We have demonstrated our sector’s capacity to help lead Victoria’s economy out of this crisis.”

Procedures that have been successfully put in place to ensure workers health and safety have included:

• Specifically developed industry guidelines for COVID-19;
• A dedicated Industry Liaison Officer and COVID-19 1800 number for the industry;
• The establishment of a high-level taskforce to oversee all direction;
• The conversion of the Incolink bus into a mobile health screening service to test for COVID-19 at building and construction sites across the state.

CFMEU Vic/Tas secretary, John Setka said, "We are committed to working with our united group of employer associations and unions to ensure our industry continues to operate, with the safety of workers being the upmost priority for all.”

 The alleviations to certain restrictions are suggested in the following areas of the industry:

1. Within commercial construction to address productivity; and

2. Within residential construction – such as through display homes and land-sales offices returning to normal trading hours

"The group stands united and committed to evidence-based decisions and advice from the health experts in order to maintain the utmost safety, whilst continuing to rebuild our states’ economy. We believe we can achieve both in a successful manner," a spokesperson said.

Click to read the Letter to Daniel Andrews, Premier of Victoria

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QUEENALAND Premier, Annastacia Palaszczuk, will be the headline speaker at Australia’s biggest online renewable energy event on May 6, 2020.

The Stimulus Summit: A Renewables-Led Economic Recovery will bring together state and territory energy ministers, industry and community leaders, and prominent academics to outline a roadmap for simultaneously revitalising and decarbonising Australia’s economy.

“We have to tackle the COVID-19 economic crisis and the climate crisis at the same time or we will lurch from one major problem to another,” said John Grimes, CEO of the Smart Energy Council, a peak national body for the solar, energy storage and renewable hydrogen industry.

“This is Australia’s moment to modernise and grow the economy, create hundreds of thousands of new, future-proof jobs and position Australia as a global renewable energy superpower,” Mr Grimes said.

Keynote speakers at the free online Stimulus Summit (11am-4pm on 6 May) include: 

• Queensland Premier, Annastacia Palaszczuk;
• State and Territory Energy Ministers
  • Bill Johnston, WA Minister for Energy 
  • Dan van Holst Pellekaan, SA Minister for Energy
  • Shane Rattenbury, ACT Minister for Climate Change and Sustainability;
  • Lily D’Ambrosio, VIC Minister for Energy, Environment and Climate Change
• Professor Ross Garnaut, Australia’s pre-eminent economist;
• Innes Willox, CEO of the Australian Industry Group;
• The CEOs of the Australian Conservation Foundation, Climate Council, Climate Works, Carbon Market Institute, Farmers for Climate Action and Beyond Zero Emissions; and
• The CEOs of Hydro Tasmania and JET Charge and other renewables industry leaders.

More than 3,000 people have already registered for the Stimulus Summit, which the Smart Energy Council is delivering in partnership with www.reneweconomy.com.au  

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AUSTRALIA'S peak body for research, insights and analytics has unveiled its new name: The Research Society.

The organisation formerly known as the Australian Market and Social Research Society (AMSRS), has more than 2000 members and 80 company and client partners, and has been regarded as Australia’s leading research and insights community for 65 years.

Every decision across government, business and not for profit sectors affecting Australians in every aspect of their lives is informed by high quality research conducted by the society's members.  And never more so than right now when high quality up to the minute information is critical to the community.

The Research Society ensures the industry works to the highest standards and protects the interests of Australians who participate, as well as those who design and conduct research, by setting and enforcing a stringent Code of Professional Behaviour, as well as providing ongoing training to the research sector.

The Research Society’s chief executive, Elissa Molloy said the rebrand provided a fresh contemporary look and feel to complement the suite of new ways in which the organisation supports research professionals and partner organisations.

“As the leading Australian research and insights community for over 65 years, we know this is the best time to refresh our look and bring on new services to reflect a changing world and to support our members in their careers,” Ms Molloy said.

“We have some 2000 individual research professional members and over 80 partner organisations that include research agencies and end-client organisations that commission research in commercial and government sectors.

“We provide discounts and benefits to them and include individual membership for their employees. Everything we do at The Research Society is designed to promote, protect, connect and develop members and partner organisations.

“Our rebrand and the raft of new opportunities and services we are introducing reinforces our confidence in the smart creative research industry we support.  New services we are launching over the coming months include:  mentoring, live and on-demand online training, networking and conferences (including digital conferences), accreditation and a new suite of research awards all designed to reflect the dynamism of our industry,” Ms Molloy said. 

About The Research Society

• The Research Society is the leading research association in Australia.
• It supports the careers of research professionals with specialist training and professional qualification (QPR), professional membership, mentoring, networking opportunities and research awards.
• The Research Society partners with research agencies and end-client organisations that commission research, in commercial and government sectors, and provides additional organisational discounts and benefits to them as well as included individual membership for their employees.
• The Research Society is underpinned by a strong ethical Code of Professional Behaviour for its individual members and company and client partners that aligns with the Australian Privacy Principles.
• It supports company partners to certify to globally recognised ISO standards and it has exclusive rights in Australia to the Fair Data program that ensures companies collect, store and use the general public’s personal data and information in line with Australian Privacy and EU GDPR requirements.
• The Research Society is a founding member of the Global Research Business Network (GRBN) that links 45 research associations globally.

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NSW BUSINESSES looking to ease the pressures of COVID-19 are reminded to review their workers compensation needs, as they may be eligible for reduced premiums.

Icare NSW CEO John Nagle said to date more than 14,600 businesses had been in touch to review their policy.

“We’ve been on stand-by during this difficult period to assist our customers with their changing circumstances. So far around 9,000 customers have made contact, or have been contacted by icare, to update their estimated wages and their business activities, which are major drivers of their premium,” Mr Nagle said.

“This is particularly true of customers impacted by social distancing measures in industries such as construction, hospitality and retail, with many needing to reduce staff numbers working at any one time.

“This has helped the majority of our directly impacted customers revise their wages down, leading to premium reductions of $40 million.

“At the same time one in nine businesses have increased their estimated wages, reflecting the upswing in some industries such as deliveries, groceries and cleaning services.”

In addition, icare has helped around 1,900 customers pause a further $38 million in premium payments whilst their businesses are in hibernation or they work through financial hardship.

“As restrictions are eased and ways of working evolve in the coming weeks, we expect to see further adjustments and we remain on hand to help customers during this time,” Mr Nagle said.

“We recognise there is still ongoing change for many businesses across the State and customers are encouraged to get in contact to discuss their individual needs.

“We will continue to balance the needs of our customers with the long-term sustainability of the scheme to ensure it continues to support businesses and their injured workers well into the future.”

NSW icare provides workers insurance to more than 325,000 businesses across NSW and customers are encouraged to contact icare on 13 44 22 to discuss their individual business circumstances.

Further details on COVID-19 measures and impacts are available on the icare website.

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BUSINESS intelligence platform China Money Network has unveiled its new service called the China Expert Network.

Relying on the more than 60,000 registered users across the China Money Network family of websites emanating from ChinaMoneyNetwork.com, the China Expert Network connects multinational businesses with talented 'China hands' who can provide more transparency to a marketplace that often seems opaque.

With a focus on investment and finance, the China Expert Network brings together industry experts and practitioners focused on ESG, special situations investing, technology, startups, cleantech, real estate, media, construction, healthcare, and manufacturing.

"Clients frequently ask for access to the high-level industry experts who subscribe to our platform's data, so the China Expert Network is a new framework that gives our subscribers and our clients a win-win opportunity," said Nina Xiang, founder and managing editor at China Money Network.

"We've structured our service to give our subscribers a high level of privacy and our clients gain an equally high level of compliance."

Subscribers to China Money Network's data and news services can update their profile information to make themselves available as experts for special consulting projects. Ater their expert profiles are selected by a client, a meeting or formal engagement is held wherein the expert is paid for their time and expertise. Clients, in turn, comply with strict compliance procedures to ensure their business and regulatory goals are met.

More information about the China Expert Network is found at https://www.chinamoneynetwork.com/expert-network

About China Money Network

China Money Network delivers primary data for China's primary markets. Subscribers on the platform follow China's smart investments, special situations and technology innovations every day. By tracking China's private equity, venture capital and technology sectors, China Money Network delivers actionable intelligence to its subscribers. We connect the data points to give global investors the tools to execute deals in China, deals that otherwise would simply never take place. The company's Chinese language platform is at www.zhongjintoux.com. China Money Network, founded in 2011 in Shanghai, operates from satellites in Hong Kong, Beijing, Shenzhen, and Hangzhou. 

https://www.chinamoneynetwork.com

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UP TO 43, 000 new homes will not be built in the next 12 months as a result of COVID-19 according to new economic modelling released today.

Denita Wawn, CEO of Master Builders Australia said, “The new modelling conducted by Master Builders Australia shows the devastating impact the lockdown of the economy is having on the building industry, the economy and the community.

“In the light of the economic impact being wrought by COVID-19 we have now revised our previous industry forecast which was released in February this year. While we obviously did not expect good news, the scope and depth of the potential damage to our industry and the economy is devastating.

“We previously forecast that there would be around 159,000 new housing commencements in 2020/21. We now expect there to be only around 116,000, a drop of 27 percent,” Ms Wawn said.

“The housing industry is vital to the economy and jobs. There are nearly 400,000 building and construction firms in Australia and more than 90 percent do work in the residential building sector. Around 388,000 of these are SMEs.

“There is already a current shortfall in achieving the required target of 200,000 homes a year which means that the impact on housing needs of our community will be severe,” Ms Wawn said.

“To be clear, Master Builders commends the Federal Government and State and Territory Governments for the stimulus measures they have already announced. We have proposed a range of stimulus measures to the Federal Government and are working with them in an effort to advance them.

“But what this forecast shows is that stimulus measures cannot wait. Our industry, the economy and the community cannot afford to wait months,” she said.

“Our industry is the nation’s third largest, it’s the largest provider of full-time jobs in Australia and they employed by 400,000 businesses, over 90 percent of which are SMEs. If governments do not act to support us now then the battle against the COVID-19 economic emergency could be lost just as the battle against the health emergency is starting to be won.

“We want the building and construction industry to be in shape to rebuild Australia. We want to protect the viability of hundreds of thousands of small businesses and the jobs of a million Australians. For that we need governments to act now,” Ms Wawn said.

www.masterbuilders.com.au

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