DESPITE a busy Christmas and New Year trading period, the first quarter of 2016 has been a challenging one for many Victorian businesses, according to the Victorian Chamber of Commerce and Industry’s latest Survey of Business Trends and Prospects.

Victorian Chamber Chief Executive Mark Stone said the survey, which captures the views of over 450 Victorian businesses, shows trading conditions were comparatively subdued in the first three months of 2016.

“Compared to the previous quarter, respondents to the survey reported a fall in exports, sales and profits.  Wage and labour on-cost pressures such as WorkCover premiums, payroll tax and penalty rates also continued to hit many businesses hard,” said Mr Stone.

“With seven of Victoria’s 13 public holidays taking place in the first quarter of the year, it is not surprising that many businesses were affected by higher operating costs, squeezing already tight cash-flow positions.”

Mr Stone said despite these difficulties, 22 per cent of respondents are anticipating stronger growth in both the Australian and Victorian economies over the next 12 months.

“Victorian business sentiment is positive, but it is also very fragile in the current economic environment.  What is needed is action to lift business sentiment and activity levels,” said Mr Stone.

Mr Stone said the forthcoming State and Federal Budgets provide a timely opportunity to do so with business-friendly initiatives that increase competitiveness, reduce business costs and create jobs.

“This is why the Victorian Chamber’s State Budget submission calls for practical measures to drive business growth such as an increase in the payroll tax threshold, a reduction in the average WorkCover premium rate, new productivity enhancing infrastructure and reforms to improve the quality of the state’s education and training system.”

For more information about the survey, please visit the Victorian Chamber website.

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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THE Credit and Investments Ombudsman (CIO) has welcomed today’s announcement by the Treasurer, Scott Morrison, that the Commonwealth Government will establish an expert panel to review the role, powers and governance of financial sector external dispute resolution (EDR) schemes.

Ombudsman and CEO, Raj Venga said he was particularly pleased to see the recognition of the critical role played by EDR schemes in financial services, and the importance of ensuring that consumers and small businesses are able to have disputes resolved efficiently and at no cost to them.

“We are an important part of Australia’s consumer protection framework, and deliver tangible benefits to consumers, our members and the financial system as a whole," Mr Venga said. “We are also committed to continuous improvement, and look forward to working with the panel to identify where there might be scope to enhance the services we provide."

The panel will also be asked to assess the merits of better integrating existing schemes to improve complaints handling.

“We recognise the importance of working closely with the Financial Ombudsman Service, and have a number of measures in place that ensure the consumer experience is seamless," Mr Venga said. “Equally, however, we continue to see significant value in having more than one scheme, which has enriched the contributions of EDR to a range of policy and law reform initiatives. EDR schemes within and across sectors learn from each other, and together encourage and inspire innovation.”

ABOUT

The Credit and Investments Ombudsman (CIO) is an alternative dispute resolution scheme approved by the Australian Securities and Investments Commission to provide consumers with an alternative to legal proceedings for resolving disputes with financial services providers who are members of CIO. These include finance brokers, non-bank lenders, building societies, mutual banks, credit unions, financial planners, finance companies, debt purchasers, small amount short term lenders and mortgage managers.

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ADVANCE CAIRNS believes that yesterday’s Government announcement that the tender for construction of 21 steel-hulled Pacific Patrol Boats has been awarded to Perth is a blow to the Northern Australian community.

Advance Cairns Acting CEO Rob Giason, expressed his disappointment saying, “Cairns put together an extremely professional and competitive bid that was based on proven experience and well developed expertise within the region.

“This decision represents a massive loss for Northern Australia and will have a genuine impact on downstream infrastructure development.  It was always going to be a David and Goliath battle - as a regional and remote area bidding against a major population centre such as Perth. But Cairns can be proud of the regional partnerships that were formed as part of the tender and the professionalism and capability that we demonstrated on the national stage.”

The Cairns bid, which was a collegiate and collaborative partnership, was one of only two that made it to the final stage of the tender process which was valued around $500m and will employ more than 130 people.

Rob Giason continued, “We are a proud regional community and although our sadness at this news may be drowned out by the celebrations of the much larger centres of population that were successful in their bid, now, more than ever, is the time for Advance Cairns and the Northern Australian region to make sure our united voice is heard and to maximise whatever local spin off opportunities might come from this contract.

“We will seek urgently to understand what maintenance contracts will remain in Cairns and also what infrastructure and capacity is needed to be competitive into the future.   We have a very competitive marine sector and so will now regroup to identify future opportunity to continue our proud and rich heritage in this sector.”

Mr Gaison said, "Advance Cairns has already been advocating through the 8+8 Infrastructure Priorities for broad development of our shipping industry through the development of HMAS Cairns and the Cairns Port Shipping Strategy and will continue our push to see renewed investment and development in this crucial sector."

www.advancecairns.com

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COMMERCIALISING research, fostering entrepreneurship and educating graduates for the future of work will be hot topics when the House Standing Committee on Education and Employment convenes a series of round-table style public hearings.

Over the next two weeks the Committee will conduct public hearings in Canberra, Melbourne, Sydney and Brisbane as part of its inquiry Innovation and creativity; a workforce for the future.

Committee Chair, Mr Andrew Laming MP, said representatives from government, industry, universities and local start-ups have been invited to participate in the hearings.

“Innovation is not just the domain of universities or start-ups. It requires close collaboration between businesses and universities to drive the development of new technologies and to ensure graduates’ skills are suited to the modern workplace.”

“The Australian Government also has an important role. Policy and legislation must keep pace with innovation by accommodating collaboration and encouraging entrepreneurship.”

“It’s important that the Committee hears a range of perspectives on these issues,” Mr Laming said.

“The inquiry findings will help shape a more innovative Australia able to remain competitive in the global economy and maintain high standards of living.”

PUBLIC HEARING DATE: Tuesday 19 April
VENUE: Committee Room 1R3, Parliament House, Canberra
PROGRAM: 3:30 pm until 6:30 pm

PUBLIC HEARING DATE: Tuesday 26 April
VENUE: Seek, 541 St Kilda Road, Melbourne
PROGRAM: 9:00 am until 1:45 pm

PUBLIC HEARING DATE: Wednesday 27 April
VENUE: TBC, Sydney
PROGRAM: 9:00 am until 1:00 pm

PUBLIC HEARING DATE: Thursday 28 April
VENUE: TBC, Brisbane
PROGRAM: 9:00 am until 12:30 pm

Members of the public are welcome to observe proceedings. For further information about the Committee or its inquiry, please visit the committee’s website.

INFORMATION ON THE INQUIRY: contact the Standing Committee on Education and Employment inquiry into innovation and creativity: workforce for the new economy on (02) 6277 4573, This email address is being protected from spambots. You need JavaScript enabled to view it. or visit the committee website.

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THE Federal Parliament's Northern Australia Committee today recommended the Northern Australia Infrastructure Facility Bill 2016 be passed by the Australian Parliament in its report titled ‘Advisory Report on the Northern Australia Infrastructure Facility Bill 2016’.

The Northern Australia Infrastructure Facility established by the Bill will provide up to $5 billion in concessional financial assistance for infrastructure projects designed to stimulate economic and population growth in Northern Australia. 

The Committee Chair, the Hon Warren Entsch MP, said: ‘The Northern Australia Infrastructure Facility will provide up to $5 billion in concessional loans, but by leveraging private sector capital, the value of the infrastructure projects it supports will be far greater than $5 billion. The Facility will accelerate the development of an infrastructure base that can underpin the long-term growth needed to unlock the economic and social potential of Northern Australia.’ 

The report is available from the Committee’s website

www.aph.gov.au/jscna

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VICTORIANS who have shown leadership in sustainability and a commitment to improving the environment are encouraged to enter the 2016 Premier's Sustainability Awards and share their stories.

Entries are now open for state and local government, businesses, organisations, community groups, and individuals who are leading the way in sustainable innovation and practices. 

Sustainability Victoria CEO Stan Krpan said the awards are a great way of acknowledging groups and individuals that have made innovative developments in reducing their environmental impact, and are contributing to a more sustainable future.

“Delivering these awards each year means we continue to discover the passion and talent Victorians have for protecting their natural environment and thinking creatively about new sustainable practices.

“The awards encourage innovation across all sectors, with a focus on delivering a triple bottom line – environmental, economic, and social benefits for Victoria.

“It has been inspiring to see the awards continue to grow and strengthen throughout their 14-year history,” Mr Krpan said.

The Premier's Sustainability Awards continues to promote leadership and innovation in sustainability, and encourage a broader adoption of these practices by all Victorians.

There are 10 award categories this year:

• Built Environment
• Community
• Education
• Environmental Justice
• Environmental Protection
• Government
• Health
• Innovative Products or Services
• Large Business
• Small and Medium Enterprises

In addition to these awards, the Premier will personally select two overall winners for the Premier's Regional Recognition Award and the Premier's Recognition Award.

Entries close Monday 27 June, 5pm.

For more information on how to enter, key dates and to register to attend an information session, visit www.sustainabilityawards.vic.gov.au

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CEBIT AUSTRALIA, the largest and longest running business technology event in the Asia Pacific region, has launched CeBIT BLACK, a VIP program to connect the C-suite of Australia’s leading enterprise and government organisations.

Whilst CeBIT Australia has delivered inspirational and informative business intelligence to nearly half a million attendees over its 15 year history, CeBIT BLACK will create an exclusive invite only engagement opportunity for tier one enterprise technology leaders and a limited number of enterprise level technology providers.

CeBIT BLACK will welcome over 200 of Australia’s most influential technology leaders on Thursday 28 April at the Museum of Contemporary Art in Sydney, providing them with a unique learning and networking opportunity.

Harvey Stockbridge, Managing Director, Hannover Fairs Australia is excited to launch the dedicated CeBIT BLACK program.

“We recognise that the requirements of elite Australian businesses, and the enterprise and government level technology suppliers they engage, require a distinct event to cater for their needs.

“CeBIT BLACK will be held the week prior to the CeBIT Australia exhibition and conferences, and will feature presentations by Kathryn Parsons, CEO of Decoded from the UK, plus Scott Monty, Crisis Communication Strategist will join us from the US. The Hon Anthony Roberts, Minister for Industry, Resources and Energy, NSW Government will also present at the event.

“We believe events like this will assist the growth and productivity of services across the business technology landscape,” concluded Mr Stockbridge.

Registered attendees are from AGL, AMP, Bank of Queensland, Bupa, Caltex, Commonwealth Bank of Australia, Cochlear, Deutsche Bank, Network Ten, Nokia, NSW Government, OFX, PwC, Qantas, Red Cross, Samsung, Twitter, Uniting Care, Veolia, Water NSW, Westpac, Woolworths and more. Job titles include, CIO, CTO, CEO, CMO, CISO and Heads of Digital.

The event will be emceed by ABC personality James O’Loghlin, and feature keynote speakers, entertainment and a charity auction in aid of The Smith Family.

CeBIT Australia: 2-4 May 2016, Sydney Olympic Park

www.cebit.com.au

A CUT in the company tax rate could see Australians worse off by an estimated $1600 each, according to economic modelling to released at the Melbourne Economic Forum today.

The modelling, undertaken by Victoria University’s Centre of Policy Studies, reveals that the cost to government revenue from a company tax rate cut outweighs benefits that could eventually flow from increased foreign investment and higher wages.

“The cost to revenue from a company tax rate cut would add to pressure on government to reduce spending in areas such as health and education and income support, or to raise personal taxes,” Dr Janine Dixon, a Senior Research Fellow at the Centre of Policy Studies, who will present the modelling results said.

Dr Dixon, who undertook modelling for last year’s National Reform Summit, said a company tax rate cut amounted to a transfer of government revenue to foreign investors – but that those investors were expected to invest more in Australia, making workers more productive and driving up wages.

Any new investment, however, would take time and a large share of future company profits would accrue to the same foreign investors.

“Our modelling results for the impact on national production, as measured by GDP, are similar to Treasury’s, but this is not a suitable measure of national benefit,” she said.

"The right indicator of national benefit is the impact of a company tax rate cut on national income and that’s clearly negative.”

Presentations on tax reform from leading economists Professors John Freebairn, Ross Garnaut, and Beth Webster and John Daley from the Grattan Institute were also on today’s agenda.

The Melbourne Economic Forum is a joint collaboration between Victoria University and the University of Melbourne. It is run in association with the Australian Financial Review.

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