Western Sydney Business Access - December 2019 by Access News Australia (ANA)

WESTERN SYDNEY BUSINESS

DECEMBER 2019 • ISSUE 105

VOICE OF THE REGION

WESTMEAD

HOSPITAL

STARS IN HIT

TELEVISION SHOW PAGE 2

PAGE 12

SNEAK PEEK AT WESTERN SYDNEY AIRPORT

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Cover Story

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There’s one born every minute:

Westmead Hospital stars in TV show  DALLAS SHERRINGHAM ESTMEAD Hospital and its staff are the stars of a brand new hot TV show on Channel 10 nationwide. Called “One Born Every Minute”, the first season has just screened on Saturday nights and gained both critical and popular acclaim. The world-renowned documentary series was exclusively filmed at the hospital’s birthing facility and broadcast nationwide. The series documents life within the hospital’s busy birthing unit, focusing on the human stories of women and their families as they welcome babies into the world. Since launching in the UK in 2010, Endemol Shine’s “One Born Every Minute” remains the most successful multi-camera documentary series ever produced. Special automatic cameras were installed at Westmead to capture the birthing room activities in “real time”. The resulting footage was then edited into the TV presentation. There have been 11 consecutive seasons in the UK and versions have been produced in the USA, France, Israel, Slovakia, Spain, Sweden, Czech Republic and Denmark. Westmead Hospital’s Women’s Health Director Donna Garland said the eight-epi-

way we interact and support families during their birthing journey.” Endemol Shine Executive Producer Debbie Cuell said the production crew was attracted to the diverse population of patients at Westmead Hospital. “Western Sydney captures a true picture of Australia with its wonderful diversity and broad range of age groups of women becoming mums,” she said.

sode series showcased the high level of care provided by the team in the hospital’s birthing unit. “The show celebrated the fantastic care and support we provide to new families every day,” Ms Garland said. “We are the busiest birthing unit in NSW with around 5500 families choosing to share the birth of their new baby with us every year. “I am sure the public is enjoying seeing the

NSW drivers choosing to go digital SW drivers can now use a Digital Driver’s Licence (DDL) on their smartphone for proof of identity, proof of age and at roadside police checks. Premier Gladys Berejiklian and Minister for Customer Service Victor Dominello announced the statewide rollout recently following successful trials in Dubbo, Albury and Sydney’s Eastern Beaches. “We’ve always put the customer at the heart of everything we do. Opal card

and Service NSW have revolutionised the customer experience. The Digital Driver’s Licence is the latest way we are making life easier for the people of this state,” M Berejiklian said. “More than 550,000 people have already downloaded the digital licence, with 97percent giving it the thumbs up. In the suburb of Blacktown alone,4,733people have chosen to go digital.” The Digital Driver’s Licence has inbuilt

COVER: Scenes from the world-renowned documentary series exclusively ﬁlmed at Westmead Hospital's birthing facility and broadcast nationwide.

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For more information about how to recognise and accept the DDL visit: https://www.service.nsw.gov. au/campaign/digital-driver-licence

CONTENTS REGIONAL ROUND-UP NEWS FEATURE ROUND TABLE TECHNOLOGY SUCCESS FAMILY BUSINESS CUMBERLAND BUSINESS TRAVEL ENTERTAINMENT CHILDSCENE WHAT THEY SAID

security controls to protect customer’s personal information. The DDL is hosted securely on the new Service NSW app, locks with a PIN and can be accessed offline. It will provide additional levels of security and protection against identity fraud, compared to the plastic driver licence.

4 5 20 21 34 35 38 40 42 46 49

STUNNING CAMPUS REVEALED University seeks feedback

Family Business: Page 35

DECEMBER 2019 Western Sydney Business Access (WSBA) ACCESS NEWS AUSTRALIA PTY LTD ABN 39 600 436 799 Publisher/editor: Michael Walls M: 0407 783 413. E: michael@wsba.com.au Associate Editor: Dallas Sherringham Journalists: Red Dwyer, Paul Haigh, Terry Collins. Photographer: Sebastian Giunta Account Managers: Julie Jackson: 0447 291 780; Graham Maughan: 0431 557 791 Contributors: David Pring, Geoff Lee MP, Adam Leto. Printer: Spotpress Design: Design2Pro, DMC Advertising Group. Website: www.wsba.com.au General enquiries: info@wsba.com.au Phone: 02 4572 2336 Fax: 02 4572 2340

DISCLAIMER: The publisher, authors and contributors reserve their rights in respect of the copyright of their work. i in any No part of this work may be reproduced or copied form without the written consent of the publisher. No person or organisation should in any way act on the information and content of Western Sydney Business Access or www. wsba.com.au without first seeking professional advice. The publisher, contributors and agents accept no responsibility for any actions that may arise from the contents of this newspaper or website www.wsba.com.au. The opinions and views expressed by contributors are not necessarily those of the publisher. Advertisements are published in accordance with WSBA terms and conditions published in the media kit downloadable at www.wsba.com.au. Advertisers agree to indemnify the publisher and his agents for any actions that may arise as a result of published advertisements or contributions. Advertisers agree to abide by the terms of trade outlined by the publisher.

DEFENCE ROUND TABLE

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Role of Western Sydney

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Regional Round-Up

www.wsba.com.au metres, at326 Woodpark Road, in the Woodpark Industrial Estate, Smithfield, for between $96-$105 a square metre for three years.

Centre wins Google prize

YDNEY University’s Westmead Applied Research Centre has been awarded the first Google.org AI Alumni prize, of $1M for a research project which draws on artificial intelligence to better manage and improve people’s health outcomes.

Sold for $1.36M A PRIVATE investor has sold an office and warehouse facility, at 65 Elizabeth Street, Wetherill Park, for $1.36M to Karoon Construction

CENTRAL WEST Hilton hotel for CBD THE Department of Planning and Environment is assessing the proposal for a 5-star. 29-storey Hilton hotel, on the corner of Marsden and Macquarie streets, in the Parramatta CBD. It includes 245 rooms, sky lounge and a hotel management school.

NORTH WEST

Property Fund. The 3500-square metre centre is anchored by SUPA IGA.

Logistics firm leases UTS footprint PROPERTY developer Celestino and the University of Technology Sydney have announced a new partnership that is set to give the university a Western Sydney footprint and a platform for a world-leading approach to higher education

Emjay leases facility EMJAY Products Pty Ltd has leased a 1539-square-metre warehouse and office facility, at 1A Bessemer Street, Blacktown, at $125 a square metre net. The lease is for six year plus five.

Supermarket deal A PRIVATE investor group has purchased a Doonside shopping centre, at 52 Rosenthal Street, Doonside, for $18.15M from a Sydney-based syndicate headed by Hsben

LOGISTICS provider, Freight Express, has leased a 2993-square-metre office and warehouse, at Oakdale Close, Eastern Creek, for five years at a rent between $130-$150 a square metre.

Supply chain leases BRISBANE-based supply chain specialist, Reatilquip, has leased a 940-square-metre office and warehouse, at 26 Penny Place, Arndell Park, from a private investor, at $120 a square metre for five years.

SOUTH WEST

expansion in production capacity at its Condell Park manufacturing plant of the instant hot water tap maker, ahead of a serious foray into the US and Chinese markets.

Lease on industrial unit DARCY Street Project has leased a 169-square-metre industrial strata unit, at 8 Kelso Crescent, Moorebank, from Designer Blinds Property Investments at $207 a square metre gross to a government subsidised tenant, for three years with a five-year option.

Private investor deal A PRIVATE investor has purchased two adjoining industrial lots totaling 10,694 square metres, in Mandarin Street, Fairfield East, from Merhi Investments Pty Ltd, for $8 million. The property is currently occupied by NKM Holdings under a 12-month lease.

Zip investment

Three-year lease

THE private equity-backed United States parent of Zip Industries has bankrolled a $6M

PARTOUT Pty Ltd has leased a freestanding industrial facility of 4402 square

$154M TAFE investment THE NSW government is investing $154M to transform TAFE NSW Meadowbank into a state-of-the-art campus, focussed on a Multi-Trades and Digital Technology Hub.

Office space build KNIGHT Frank estimates that 70 per cent of the 280,000-plus square metres of office space under construction in the Parramatta CBD have been pre-committed, with no new supply the headline vacancy rate has tightened from 3.0 percent to 2.7 per cent in the six months to July 2019, in its September Parramatta Office Market Report

Quaycentre wins SYDNEY Olympic Park’s Quaycentre won the Best Achievement in Venue Management category at the 2019 Australian Events Awards. Quaycentre was the largest and longest-operating competition venue for the Invictus Games Sydney,

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Stunning campus design revealed  DALLAS SHERRINGHAM HE new Western Sydney University Bankstown Campus will feature a stunning design guaranteed to be one of the iconic buildings of the region. It will mean that the key regional cities of Parramatta, Liverpool and Bankstown will have brand new campuses within easy reach of western students. And it will also mean Western Sydney will have a vast talent pool of educated young Australians ready to provide a skilled workforce. Now the State Government is calling on the community to have its say on plans for the $260m high-rise campus in the city centre. Planning and Public Spaces Minister Rob Stokes said the cutting-edge 19-storey building would include classrooms, conference facilities, shops and new public space in the heart of Bankstown. “The proposed university will be the third vertical Western Sydney University campus

Artist impression of the new campus.

in Greater Western Sydney, with campuses already in Parramatta and Liverpool,” Mr Stokes said. “It will cater for 10,000 students and around 700 professional and academic staff

across a range of disciplines including health, education, manufacturing and IT, with 2000 students on campus at any time.” Bankstown is set to be a new health and education precinct, home to up to 25,000 jobs

by 2036 that will have access to new state-ofthe-art transport. “A new university, coupled with the existing TAFE will attract more students to the area and create a more vibrant CBD,” Mr Stokes said. “This uniquely-designed building would help Bankstown develop into a health and education precinct, especially given it would be right next door to Bankstown Library and Knowledge Centre. “The community plays an important role in shaping the future of their area and I encourage everyone to take a look at the plans for this uniquely-designed building and tell us what they think.” Western Sydney University intends to transition off the Milperra campus with the opening of the Bankstown City campus in 2022. To view the plans and have your say on the project visit https://www.planningportal.nsw.gov.au/majorprojects/project/11456

It’s war on abandoned trolleys ENRITH City Council has joined other Councils from across Western Sydney to rid the suburbs of unsightly abandoned shopping trolleys.

P Penrith City Council General Manager Warwick Winn, PCC Director – Development and Regulatory Services Wayne Mitchell, Penrith Mayor Ross Fowler OAM and Senior Ranger Steven Purvis with trolleys Council collected in the blitz.

Penrith City Council, Liverpool City Council, Fairfield City Council and Cumberland City Council rounded up 550 shopping trolleys on a single day recently in a concerted effort to remove trolleys. The councils are calling for the State Government to amend the

Impounding Act 1993 to allow councils to fine retailers for abandoned shopping trolleys. Penrith Mayor Ross Fowler OAM said retailers need to be accountable for their trolleys. “Our local communities are fed up with trolleys being dumped in their streets, parks and waterways,” Cr Fowler said. “There is a cost to retailers to replace diminishing stocks of trolleys and there is a cost to Councils

as we keep the amenity of the suburbs. Both of those costs could be significantly reduced with a greater emphasis by retailers in restricting the movement of wayward shopping trolleys. “Right now there is very little in the way of discouraging retailers from allowing their trolleys to be abandoned and as a result of that we are having to re-direct resources to fix the problem,” Cr Fowler said.

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Inaugural Health and Wellness Expo ILLS residents no longer need to trek to the health meccas of Bondi, Byron or Bali to receive the best options of health and wellness. Now, for the first time more than 40 local health professionals will be under the one roof at the inaugural Hills Wellness Expo, on Sunday, March1, 2020. The concept for the Hills Wellness Expo grew from ‘Healthy in the Hills’, a business group of local female health professionals. Since its creation three years ago, the group has grown to over 200 members. The expo is a passion project of founder Rachel Aldridge, accredited naturopath and owner of local business, In Natures Hands. “The Hills really has such a plethora of high-quality, qualified health professionals, and I wanted to bring a selection of these to

life with the Hills Wellness Expo, via a free event for our community,” said Rachel. Rachel sees the importance of collaboration across professions when it comes to supporting optimal wellness. “Often it’s crucial to take a holistic view of our health, which means developing a good team around us when we are on a journey to get our health back into balance,” said Rachel. The Hills Wellness Expo will be held at Castle Hill RSL on March 1st from 9am until 4pm in the Lyceum–bringing together over 40 of the Hills health professionals, including

Expo organiser, Rachel Aldridge.

areas of naturopathy, nutrition, kinesiology, myotherapy, massage, mindset coaching, yoga, pilates, acupuncture,aromatherapy, physiotherapy, chiropractic, homeopathy, bowen therapy, Chinese medicine and counselling. The event will consist of exhibitor stands, allowing the community to come along and talk to the various health professionals and understand what it is they do. There will also be talks and demonstrations held throughout the day. The event will also be an occasion for the Healthy in the Hills team to raise money for Hills Relay for Life, a charity they have supported foralmost4 years. For more information visit www.facebook.com/hillswellnessexpo www.instagram.com/hillswellnessexpo and the event page Website launching in December.

Local business awards return HE Local Business Awards will be back in 2020, and founder Steve Loe has called on the community to nominate its favourite businesses. The Precedent Production Managing Director, who founded the awards more than three decades ago, said it was an opportunity for members of the community to encourage and show appreciation for outstanding providers of goods and services. “Business owners, managers and staff work hard and often go above and beyond to help their clients and customers,” he said. “As members of the community, we reap the benefits of their efforts, which can make our own lives happier and easier in many ways.

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“Sometimes it’s as simple as a friendly smile and sympathetic ear from the staff in a shop that lifts your spirits when you’re having a bad day. “Nominating someone for their outstanding service or products is a great way to thank these people, who are the backbone of our community.” Mr Loe said businesses could also selfnominate to show staff how much their efforts were valued. Nominating is as simple as filling in the coupon in-store or online at the Awards’ website www.thebusinessawards. com.au Everyone who nominates a business will be in the running to win a prize. Media partner, Western Sydney Busi-

ness Access will provide key dates for the Awards including nomination open and closing dates, and Presentation Evening dates where category winners will be announced. Western Sydney Business Access will also run special Feature editions to highlight outstanding businesses in the area. For further information on the 2020 Local Business Awards, call Precedent Productions on 8363 3333 or visit www.thebusinessawards.com.au

Sydney Hills Nominations Open: Monday, February 3. Nominations Close: Tuesday, February 25. Presentation Evening: Wednesday, April 22.

Steve Loe with an award winner at last years Hills local business awards.

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Commission says it’s listening  DALLAS SHERRINGHAM HE provision of the “right” infrastructure in Sydney’s booming West is a major priority for the Greater Sydney Commission. So, the Commission is giving business people and residents the chance to put their ideas on the table for the Greater Parramatta and Olympic Peninsula regions, known as the GPOP. The Commission has launched Australia’s first Place-Based Infrastructure Compact (PIC), a new city shaping planning model piloted in Greater Sydney’s fastest growing area. A spokesperson said the Commission had heard “loud and clear from “ from the public that they wanted a say in the type of infrastructure projects needed in the region. The PIC model, created in collaboration with 20 NSW Government agencies, shows how to sequence growth in housing and jobs with the delivery of infrastructure, getting the best value for the community. The model also clearly shows the full range of infrastructure that should be prioritized to create livable, unstainable and loveable places. The Commission is seeking community and stakeholder feedback on the new PIC model, as well as the findings and proposed actions for GPOP until December 18. Feedback received will inform the Commission’s recommendations to the NSW Government.

T The mobile workers of tomorrow  DALLAS SHERRINGHAM OMORROW’S Western Sydney workers won’t be driving all the way to their jobs, they will be catching state-of-art public transport, riding bikes or even walking the final stage according to a key advocate for smarter cities Three quarters of Western workers still commute by car, but a new strategy from the Smart Cities Council outlines six essential steps to greater urban mobility and better cities. Mobility Now, released as part of the recent Smart Cities Week, was prepared by the Council’s Urban Mobility Task Force, a group which advocates for sustainable and inclusive mobility solutions that build livable cities. Smart Cities Council Executive Director Adam Beck is leading the charge to make the workforce more mobile. “Advancing technological capabilities, new service delivery models and unprecedented city growth create great opportunities as well as urgent pressures to deliver new mobility solutions,” he said.

“Australia’s population is projected to grow by 24%, reaching 31.4 million by 2036. Nearly 80% of this growth will be accommodated in our four largest cities of Sydney, Melbourne, Brisbane and Perth. “At the same time, Infrastructure Australia estimates that that road and public transport congestion could cost the economy $40B by 2031. “We know half of all commuters in our capital cities live within 10 km of their workplace – and as much as a third live within five km. And yet most still drive. Our challenge is to boost transport options that help people overcome the first and last mile hurdle. “If just five per cent of driver-only commuters shifted to micro-mobility – cycling, scooting or walking in combination with public transport – we would remove 300,000 cars from Australia’s daily commuter traffic, while helping people’s wallets and waistlines,” Mr Beck said. The Mobility Now strategy outlines six clear steps: 1. Adapt and re-design the urban built environment. 2. Develop a new urban mobility operating system.

3. Introduce more accessible and equitable mobility. 4. Embrace a global 21st century urban mobility data system. 5. Create a new mobility incentives regime. 6. Implement new decision making and strategy development practices. “These six actions must be taken now to address the challenges associated with the ‘first and last mile’ problem and enable uptake of more sustainable transport modes,” Mr Beck said. “Mobility Now is not about pitching cars against bikes or pedestrians, but about curating a more balanced mix of transport modes to enhance the livability, sustainability and workability of our cities – not to mention the health and wellbeing of our citizens.”

About the Smart Cities Council Smart Cities Council is the world’s largest network of smart cities companies, practitioners and policy makers. It envisions a world where digital technology, data and intelligent design are harnessed to create smart, sustainable cities with high-quality living and highquality jobs. www.smartcitiescouncil.com

For more information on the PIC or how you can have your say visit www.greater.sydney

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Which suburbs feel the heat most?  DALLAS SHERRINGHAM E all reckon that some suburbs are much hotter than others despite what it says on the TV Weather and new research confirms that some parts of Western Sydney are indeed sweltering while other parts are cooler. Researchers from Western Sydney University have found communities in the West experience extreme heat more frequently than previously known. And the researchers also found that growing trees was the best way to cool microclimates. The University has released the first documentation of temperature variation across the local government areas of Parramatta, Campbelltown and Cumberland. Three studies led by Senior Research Theme Fellow (Environment and Sustainability) at the University’s School of Social Sciences Dr Sebastian Pfautsch, have been released. Researchers took high-frequency air temperature measurements at several hundred locations across the three local government areas. The measurements were calibrated against temperatures reported by the closest official weather stations. Among the measurement locations in each council, temperatures differed up to 6°C and during days of extreme heat, more than 10°C. For example, peak air temperature in Sydney Olympic Park was 32°C while it was 45°C in Toongabbie during a heatwave at the end of 2018. “The significant temperature variations recorded suburb-to-suburb and even street-tostreet across the three local government areas demonstrate the need to assess and combat extreme heat at a local level,” Dr Pfautsch said. “The microclimate maps will help councils identify patterns of heat unique to their regions

Testing Western Sydney temperatures.

Dr Sebastian Pfautsch at work.

– knowledge that was previously unavailable. They will assist emergency services during heatwaves, contribute to community education and inform future cooling strategies and development practices.” The researchers also documented the effects of street and park trees on local microclimates, identifying species that were more or less useful to generate cooling. According to the findings,

the most effective way to reduce local heat is to provide small trees with optimal growth conditions so they can develop a larger crown quickly. “Local temperature is largely affected by the different thermal characteristics of the materials that make up the terrain – roads and buildings can lead to higher temperatures and trees and other green urban infrastructure can provide cooling,” Dr Pfautsch said.

“As climate change leads to more heat events and as development accelerates in Western Sydney, we need to consider how much green infrastructure we can really afford to lose before we severely impact on livability.” “In particular, retaining and adding to green space in new developments should be a priority for planners and developers in western Sydney. Any large open space with trees, like a playground, public park or remnant woodland, should be cherished as a Cool Zone.” The three reports make recommendations for each respective local government area. Access the reports at www.westernsydney. edu.au • Benchmarking Heat Across Cumberland Council; • Benchmarking Heat in Parramatta, Sydney's Central River City; • Benchmarking Heat Across Campbelltown.

WSBC confirms 2020 board ESTERN Sydney Business Connection has welcomed back all existing Board Members who were re-elected at yesterday’s Annual General Meeting recently. WSBC also announced the appointment of Arani Duggan from Ronald McDonald Charities GWS, who was elected to take on the role of Senior Vice President. WSBA has thanked the 2019 Board for their time and effort throughout the year and has great pleasure in announcing the 2020 Board as follows: • President: Brendon Noney, HWL Ebsworth Lawyers. • Senior Vice President: Arani Duggan, Ronald McDonald House Charities GWS. • Treasurer: John Spender, William Buck.

• Committee: Duncan Challen, Celestino. • Committee: Lindy Deitz, Campbelltown City Council. • Committee: Duncan Ellis, Deloitte. • Committee: Brett Kingham, Laser Wizard. • Committee: Ramsina McCully, The Female Social Network. • Committee: Arnab Pal, Commonwealth Bank. “Our 2020 Board brings a diverse range of skill sets and experience across multiple sectors. As always, the Board will continue its tireless work in elevating WSBC to the next level and in serving its members and the Western Sydney business community.” Said WSBC general manager, Amanda Brisot (pictured).

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Future of Parramatta

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LOOK AT THE FUTURE OF PARRA MATTA 3D flythrough animation unveiled ITY of Parramatta Council has unveiled a 3D flythrough animation that gives a never-before-seen glimpse into what the City is expected to look like when a number of award-winning architectural projects are completed. The animation brings to life 30 projects that have won Design Excellence competitions over the past four years, with a combined value of $5.5B. The City of Parramatta has undertaken more Design Excellence competitions than any other NSW council. “At the core of any great city is quality design and planning. This leads to the construction of first-rate commercial and residential buildings, and infrastructure that meets the needs of current and future populations,” City of Parramatta Lord Mayor Cr Bob Dwyer said. “The flythrough animation provides a remarkable glimpse into the future of Parramatta, showcasing exceptional architecture that will undoubtedly help cement Parramatta as a world-class City. It’s exciting to see the future coming to life right before our eyes.” Design Excellence competitions use a range of requirements to ensure the highest standard of architectural, urban and landscape design is delivered and that the design contributes to the natural, cultural, visual and built character values of the City. Through the development of the 3D flythrough, the City of Parramatta is recognising the work of architects, designers, developers and specialists, both local and international. “Our Design Excellence competitions attract some of the world’s most inspiring designers and promote more innovative and higher performing buildings and public spaces,” Cr Dwyer said.

Artists's impressions of a future Parramatta city.

Peter Poulet, the Central City District Commissioner for the Greater Sydney Commission, said great design was essential to creating a vibrant urban environment. The animation showcases 30 new buildings that are at different stages in the development cycle – those that have already been built, those that are under construction, those that have

been approved for construction and those in the assessment phase. Projects featured include Bankwest Stadium, Parramatta Square, Parramatta Aquatic and Leisure Centre, the Civic Link, and Arthur Phillip High School – the state’s first high-rise public high school.

Leading night-time city by 2024  RED DWYER HE Parramatta’s narrow night-time economy (NTE) is restricting the city’s transition to a successful 24-hour centre – 77 per cent of the city’s core NTE business activity is food based with licensed gaming providing 30 per cent. A key catalyst on the road to prosperity is diversity of amenity with a focus on the arts and entertainment. Parramatta is the second largest night time economy by turnover in Greater Sydney and third largest in NSW. The NTE, which increased by 37 per cent over the past decade, contributes $1B (2018) to the city’s gross product “We are growing our night time economy, but we lack diversity,” notes Parramatta Council’s draft Parramatta Night City Framework 2020-2040. “We need to do more to ensure the long term prosperity and continued investment in our night time economy. “What we want you to see in 2024 is Parramatta as a leading night city of events, live music, arts and performance, positioning

the city as the arts and cultural capital of a burgeoning Greater Sydney.” While the CBD is the major player in the NTE – the precinct is the most popular eating out site (80 per cent of respondents) – “our goal is to develop and cultivate a thriving night city across the Parramatta LGA, not just in the Parramatta CBD,” the document said. The draft document identifies six key strategies for the development of a night city in Parramatta that is safe, vibrant, diverse and interesting: planning and regulation, community safety and engagement, business and cultural development, research and advocacy, infrastructure and marketing and promotion. City of Parramatta Council has established a Night Time Economy Diversification Grants Scheme to support and encourage local performers and businesses to help expand and enrich the City’s night time economy through new activities and events. There will be five $10,000 grants across five different categories on offer: Live Music; Small and Pop-up Bars; Arts, Culture and Performance; Retail and Services; and Local Centres. The grants will enable individuals and businesses to trial new services and offerings in the City.

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

Parramatta's night-time economy is potentially a major attraction. Photo above shows Parramatta Lanes event.

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High speed rail to serve west  DALLAS SHERRINGHAM HE much-discussed Sydney to Canberra High Speed train will travel via Western Sydney Airport, giving western commuters a quick arm-chair ride to the national capital. If all goes to plan, the high-speed service will connect Sydney West and the ACT with pressure mounting on the Federal Government to commit to the service. And Stockland CEO Mark Steinert has pitched into the discussion via the Financial Review recently. “A high-speed rail service between Can-

berra and Sydney would have a significant, positive impact on productivity, given the frequent travel between, and national importance, of these two cities,” Mr Steinert, CEO and managing director for Australia’s largest property developer, told the paper. “Investing in high-speed rail boosts economic activity through jobs growth, productivity gains, reduction in congestion and sustainable, improved mobility.” The most important factor about fast rail was its ability to create equal opportunity, he said. “High-speed rail can be a connector and equaliser – giving people improved access to major capital cities or activity hubs, open-

ing up possibilities for greater participation in education, jobs and cultural experiences, helping people create better lives with more opportunities.” In 2017, Infrastructure Australia reported that the early acquisition of corridors for seven rail projects on its priority list, including highspeed rail, would save the public $11 billion in land acquisition and construction costs, NSW Premier Gladys Berejiklian has committed $5m in funding to investigate highspeed routes between Sydney and Canberra via the Western Sydney Airport, while ACT chief minister Andrew Barr said he would call on the Federal Government to fund the highspeed rail link before the next election.

Shadow Minister for Infrastructure, Transport and Regional Development Catherine King is also pushing the project. “High-speed rail is a game changer for real decentralisation, with benefits flowing to both the city and the country,” Ms King said. (Source: railexpress.com.au)

Charter Hall buys Jessie St ARRAMATTA’S allure as a booming city centre continues with leading property company Charter Hall acquiring the Jessie Street Centre in the CBD. The purchase for an undisclosed amount was made in partnership with GIC Real Estate, the Singapore sovereign wealth fund. The Jessie Street Centre is an A-grade office building with a net lettable area of 53,900 sqm. The property is fully and has a 5.5 star NABERS Energy Rating. The property benefits from a strong underlying tenant covenant base, being predominantly leased to the Australian Taxation Office, AMP Services Limited and vari-

David Harrison.

ous NSW Government Service tenancies. Charter Hall Group Managing Director and CEO David Harrison said: “This strategic acquisition fur-

ther strengthens a well-established 15-year partnership with GIC. They recognise our strong track record of creating institutional quality investment opportunities and we can add value to utilising the second largest office platform in Australia with approximately $18B of property assets.” “We are also proud to advance our relationship with the Australian Taxation Office as a major tenant customer, which further increases our exposure to the Australian Government and also the NSW Government across our office portfolio,” Mr Harrison said. The property will benefit from significant developments

and infrastructure projects within the surrounding precinct including Parramatta Square, the recent completion of Stage 1 of WestConnex Motorway, the Parramatta Light Rail project to be completed in 2023 and the recently announced Sydney Metro West rapid rail to the Sydney CBD, which will reduce travel times between the two CBDs. Chief Investment Officer, GIC Real Estate Lee Kok Sun said: “Parramatta is expected to benefit from Sydney’s forecast population growth and planned infrastructure enhancements such as a new metro line to the Sydney CBD and a light rail link.” Fund Manager, Charter Hall

Jessie St complex.

Trent James said: “This is a rare opportunity to acquire a high quality, A-grade office asset situated on a significant 13,530 sqm site within the Parramatta CBD

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Western Sydney International Airport

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New airport design will be Sneak peak of the new Western Sydney Airport  DALLAS SHERRINGHAM his is a sneak peek at the new $5.3B Western Sydney Airport Design which will be home to tens of thousands of local workers and businesspeople after it opens in 2026. More than 10 million passengers a year will pass to the terminal on international and domestic flights initially. But the sky is the limit with aviation set to boom in the next few decades and the Federal Government predicting 80 million will pass through the airport eventually. The functional and cost effective design can be described as a “practical rather than beautiful” work and it is aimed at giving value-for-money as the new Gateway to NSW and Australia. Western Sydney will be right on the doorstep of the airport which will be surrounded by a massive Aerotropolis city in its own right, employing 250,000 plus local people. World renowned architects Zaha Hadid and local firm Cox Architecture won the design competition and the winning entry has now been revealed by the Department of Urban Infrastructure. The design is the next step in Western Sydney International taking shape, with major earthworks set to start early next year. The winning design focuses on the customer journey while paying tribute to the

All imagrs: artist designs of the Western Sydney International (Nancy-BirdWalton) Airport.

Western Sydney region and natural landscape. It passed a range of value-for-money and technical reviews. Minister for Cities, Urban Infrastructure and Population Alan Tudge said Western Sydney would be the big winner as the airport continued to take shape. “The construction phase alone will support 11,000 direct and indirect jobs in the Western Sydney region,” Minister Tudge said.

“Within the first five years of the airport opening it is expected to support 28,000 full time jobs for the people of Western Sydney.” Prime Minister Scott Morrison said the design showed the once-in-a-generation infrastructure project coming to life. “This is set to be the largest gateway to Australia and these designs are another step to making it a reality,” he said. “Designed alongside locals and built by local workers the airport will deliver massive

economic benefits to the region.” Aurecon has been appointed to provide the terminal precinct engineering design services for the new Airport. The global engineering, design, and advisory company, based in Australia and South Africa, was selected through a competitive tender process to oversee engineering of the terminal precinct. Continued on page 13

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

Western Sydney International Airport

VIDEO – www.accessnews.com.au

work base for thousands

Continued from page 12

Reference design This includes development of the reference design and technical advisory support for the 10 MAP terminal building, the aircraft apron, public car parks and roads. The Aurecon team led by aviation expert Brett Reiss will bring a mix of engineering, technical aviation and advisory skill sets to what is the largest aviation project Australia has seen in decades. “We are not just engineers, we are approaching this project with a user centred design approach to ensure that the project provides a great passenger experience,” Mr Reiss said.

Instrumental in the development of this approach was Aurecon’s i40 team, which is an internal innovation team that deploys Design to Innovate processes to help unpack a problem and develop solutions. Federal Finance Minister Mathias Cormann said designing and constructing a terminal capable of catering for 10 million passengers annually was a significant challenge. “To meet the challenge the terminal will be designed for modular expansion, to accommodate the long term capacity of up to 80 million passengers anticipated every year by the early 2060s,” Mr Cormann said. To be considered for the design project, interested firms were required to have experience designing an airport of similar size and

complexity to Western Sydney International in the past five years. The final decision on the winning design was made by a panel of some of Australia’s most renowned architects. Liberal Senator for Western Sydney Marise Payne said the competitive process undertaken for the terminal precinct design led to the very best outcome for Western Sydney. “The iconic final design ensures that air travel will be accessible for locals, as well as locking in new opportunities for people who want to work, shop and meet at the terminal precinct,” Senator Payne said. The airport has committed to delivering 30% of direct job opportunities to Western Sydney residents and is currently exceeding that target.

Member for Lindsay Melissa McIntosh said designing an airport and working through concepts with local students was important. “I am pleased to see that Zaha Hadid Architects and Australian architects Cox Architecture will work with Western Sydney University students, local Aboriginal groups and other stakeholders to further refine and enhance the concepts to arrive at the final design,” Ms McIntosh said. “This is the first step in preparing our local kids for the jobs of the future by playing such an integral role through the design of the Airport. We know that post construction over 28,000 jobs will be created and we want our kids to take those opportunities.”

Position Vacant Media Sales Role Access News Australia (ANA) seeks a talented sales person to work on our newspaper titles and digital media products. The person we seek will likely have sales experience in a media related industry or, at least, understand how media products work. He or she will be engaging and will be a first class communicator. ANA publishes two established regional newspapers: l Western Sydney Business Access. l Central Coast Business Access. ANA will be leveraging our contact and client bases to add value with digital products such as social media campaigns video production, SEO, creative and website development. This role is mostly concerned with developing the digital packaging side of the business. The person we seek will engaged as a contractor. He or she will have their own oﬃce and equipment such as phone and laptop. Remuneration for this role is mostly by way of a generous commission. It may suit a sales professional in an existing work from home situation with capacity to take on extra work.

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Coleman Greig and Argyle Lawyers merge SESTERN Sydney law firm Coleman Greig is expanding its service offering with the integration of specialist law firm Argyle Lawyers. The integrated Coleman Greig will now offer expertise in Federal, State and International tax advice, negotiation and risk management as well as superannuation and trusts. Coleman Greig CEO Warrick McLean says “To be integrating two such highly regarded and respected practices is a significant milestone. We are both solutions focussed, and combined, we significantly strengthen our commercial and personal suite of services. Having the Argyle team within Coleman Greig offers clients access to the 2015 Tax Institute Advisor of the Year (SME) as well as an Accredited Specialist in Taxation Law and dual qualified lawyers/Chartered Accountants who can provide advice on a national level.” “We have been focussed on securing high-powered tax focused skills, but with the

integration of Argyle Lawyers our clients will also enjoy proven support in superannuation and asset protection as well as personal and business succession.” Argyle Lawyers has a pedigree dating back to 1982 and has been at the forefront of Australia’s taxation changes. Peter Bobbin, Principal of Argyle Lawyers said “Being at the forefront of our field has allowed us to be an influence on taxation and other laws that impact on the lives and well-being of people and commercial entities. We are regularly appointed as key managers of ATO audits and disputes where we can add significant strategic insight. Joining the team at Coleman Greig will allow us to put our client focussed tax, superannuation and other planning into greater effect.” Coleman Greig will continue operations from its four locations (Parramatta, Norwest Business Park, Penrith and Campbelltown-Macarthur) as well as operating from the current offices of Argyle Lawyers in the Sydney CBD.

Caroline Hutchinson, Principal/Director; Peter Bobbin, Principal Lawyer; and Malcolm Gittoes-Caesar, Principal/Director of Coleman Greig Lawyers.

Plans unveiled for green streets

ESTERN Sydney’s future suburbs are set to be greener and prioritise shared community space with the NSW Government unveiling its plans for the new Schofields project. Planning and Public Spaces Minister Rob Stokes said this project showcases how good development can create better environmental and social outcomes for communities asthey grow. “With more than 1.5 million people set to call Western Sydney home by 2056, we need to create a sense of community as we build the homes and the suburbs of the future,”Mr Stokes said.

“The Schofields development flips this model on its head and orients the suburbs around greener, wider streets and shared spaces, all within a kilometre of public transport connections.” The project, delivered by the NSW Government’s developer Landcom, features a central green streetto help mitigate the heat is land effect, and shared driveways between houses to provide areas for families to enjoy together and promote social and community interaction. Landcom CEO John Brogden said the project will create a precedent for the inclusion of green streets and diversity of housing typologies for new development in Western Sydney.

Artist impression of the concept.

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Liverpool’s a smart city for third time  RED DWYER IVERPOOL City Council has completed a hat trick by winning its third successive Smart City Award – this time for agriculture. While the city seeks to be known as Sydney’s third CBD with the “significant” rejuvenation of its city centre, the city has not lost its reason for being. Founded in 1810 as an agricultural centre, Liverpool, until the 1950s, was a town with an agricultural economy based on poultry farming and market gardening until urban sprawl took its toll. Once a satellite town, Liverpool then became an outer suburb of metropolitan Sydney with a strong working-class presence and manufacturing facilities, and in recent years a strong and evolving commercial sector. Today, Liverpool City Council, along with NSW Farmers, is a driving force in the federal government’s Future Food Systems Coopera-

tive Research Centre (CRC) furthering its agricultural heritage. The CRC is helping drive the success of regional and peri-urban food hubs in Liverpool enabling the city’s primary producers to be at the forefront of food production and help future-proof the agriculture industry and create jobs.

Partnership Council’s partnership work in agribusiness across three tiers of government, researchers, businesses and farmers earned it the Best Cross Sectoral Collaboration Project gong for its entry, Global Jobs for the Future, in the Committee for Sydney’s 2019 Smart City Awards. The CRC has more than 70 partners including six universities, government organisations, primary producers, manufacturers, wholesalers and retailers. Liverpool is the location for one of six food hubs – the only one in metropolitan Sydney – where researchers, growers and manu-

Liverpool Mayor, Wendy Waller.

facturers will work together to find new ways to meet the growing local and international demand for Australia’s high-quality produce.

Start on $88M Penrith hotel complex FTER three years of planning, construction has started on the$88M state of the art, Western Sydney Community and Conference Centre, that will service and support the continued growth of Western Sydney. Penrith Panthers, CEO, Brian Fletcher said: “The thriving business community of Western Sydney has long been in need of a modern, multi-purpose conference centre and Panthers is proud to be delivering exactly that.” Stuart Ayres. Artist impression of the new development. The conference centre will feature 1,250sqm of flexible floor space “This new centre will make Penrith Western Sydney that will be able to host major events, the place to bring trade shows, confertrade shows, exhibitions and seated funcences and conventions in Western Community and Conference tions for up to 1000 people. This will be Sydney, bringing with them plenty of Centre at a glance serviced by a 153 room4.5 Star Hotel, and jobs too.” sit below a 1200 square metre community 300 jobs will be created during conConference Centre centre. struction with a further 100 ongoing • 1000-person convention The WSCCC has been made possible roles upon completion of the project. centre. thanks to combined Federal and State Richard Crookes Construction • Space to be use for conferGovernment grants of $24M. member for won a competitive tender process in ences, events, exhibitions, etc. Penrith the Hon. Stuart Ayres, Minister November to build the iconic develop• Pre-function space opening for Jobs, Investment, Tourism and Westment. An estimated completion date of on to two acres of landscaped ern Sydney said the development was part late 2021 has been set, with Panthers space. of Panthers ongoing commitment to pro- accepting bookings in early 2020. • Entire building serviced by a viding world-class facilities for the people “The development is part of the double basement carpark. of Penrith and the greater community. record $1B investment the Panthers Hotel Group is making on behalf of the local “Panthers are a cornerstone of the • The first 4.5 star hotel west of Penrith community, which also inWestern Sydney community and this new Parramatta. cludes residential retirement facilities, development will be a game changer for • 153 Rooms. The Royce and mixed-use developwestern Sydney community groups and • Bar and Restaurant with priment, East Side Quarter. for the people of Penrith. vate dining rooms. “The Panthers Group main busi“The many outstanding community • Ground floor café. ness focus is making returns by providprograms and initiatives in the Penrith ing a diversified range of opportuniregion will benefit from the community Community Centre ties to its members and the Western centre. While the conference centre will • 1200 Square metres of ComSydney Community and Conference enhance Penrith’s reputation as a worldmunity Centre. Centre plays that roll. We take pride in class event and tourism destination • Terrace facing Mulgoa Road. our position in the community to be The Member for Lindsay, Melissa • Separable into two spaces for able to provide these essential services McIntosh, welcomed the start of main charity and community enfor the growing local business comconstruction and the significant boost it deavours. munity,” Mr Fletcher said. gives the local economy.

Council is also working with NSW Department of Primary Industries and The Western City and Aerotropolis Authority, examining what a world-leading agribusiness precinct might look like, and how it can provide local job opportunities for the community. “We have the perfect opportunity with the development of Western Sydney International (Nancy-Bird Walton) Airport and the Aerotropolis to include a new food precinct,” Mayor Waller said. “High-tech indoor agriculture and food manufacturing has the potential to create new high-value jobs in our region.” Cr Waller said the CRC would also investigate the best ways to add value to locallygrown produce to make it more attractive to international markets. Council won a Committee for Sydney Smart City Award in 2017 for Best Local Government Initiative for automating planning certificates and in 2018 for Best Local Government Initiative for council’s Smart Pedestrian Project.

Drivers urged to take extra care RIVERS are being urged to take extra care over summer with the State’s road toll already at 330 – seven higher than last year. 330 people gathered at Bankwest Stadium recently to demonstrate the huge loss of life on our roads with authorities fearful the toll will climb even higher over the busy holiday period. “It is devastating to think 330 people haven’t made it home this year. That’s 330 families celebrating Christmas without a loved one. The impact is massive and it’s not just deaths that are the tragedy on our roads. Almost 11,000 people have suffered serious injuries in crashes in just 12 months,” Minister for Roads Andrew Constance said. “We want everyone to stop and think, think about how their behaviour on the roads impacts others, think about how they would feel if they lost a loved one and think about what they can do to help stop these deaths and injuries on our roads. “We will do everything we can as a government by building safer roads and using technology to help keep people from harm. But at the end of the day we really need everyone to take personal responsibility.” Minister for Police and Emergency Services David Elliott said seeing 330 people gathered in one spot demonstrated the scale of human loss as well as the importance of making safe decisions on our roads. “In NSW so far this year 217 people have died in regional areas. The really sobering fact is around 70 per cent of fatalities on country roads are country residents. “It’s not visitors from out of town, it’s people who live in the area, who know the roads well and who often aren’t far from home when the worst thing happens,” Mr Elliott said. Matthew Stubbs, a survivor of road trauma and a road safety ambassador, lost both his parents in a crash in 1993 when he was just five years old. While Matthew and his brother David survived the crash, his youngest brother Jackson suffered permanent injuries and passed away at the age of 12. “No one deserves to lose their life on our roads. Don’t take unnecessary risks. I am without parents and a brother and I would hate to see anyone else go through the same thing,” Mr Stubbs said.

HIA says Govt indecision is impacting housing affordability  DALLAS SHERRINGHAM HE Housing Industry Association has blasted the State Government’s decision to the again delay the introduction of the Medium Density Housing Code. It claims housing affordability will be the loser because of the further delay. HIA Executive Director NSW David Bare is adamant that consumers will be the biggest casualty of the deferrals. “The Government’s decision to once again delay the introduction of the medium density housing code for the 45

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

currently deferred councils until July 1, 2020 is definitely a significant loss for housing affordability and consumers,” he said. “The NSW Planning Department consulted extensively with industry and councils to develop the medium density code which was originally launched in April 2018 after nearly two years in development and negotiation with all stakeholders including Local Government representatives. “It was then hurriedly and inappropriately retreated from under pressure from councils prior to the State Election. Now, following a review, the 45 councils have pocketed a further eight month delay apparently because they are also drag-

ging their feet on developing their strategic housing plans. “This code only covers medium density construction up to two storeys’ high,” Mr Bare said. “The State Government needs to support this most basic form of medium density housing product which offers greater choice, more affordable options and will be more readily acceptable to many residents,” Mr. Bare said. The new code will help to alleviate the bottle neck of development applications created by the State’s dated and overly complex planning system. It will also reduce planning and administrative costs by up to $15,000 for people building a duplex or townhouse.

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New rules you can bank on ANKING has just become a whole lot easier for Western Sydney businesspeople thanks to a new Code of Practice rule book. The Code of Practice was outlined at a Breakfast function attended by leading business owners. The Australian Banking Association partnered with Western Sydney Business Chamber to brief the local business community and stakeholders on the new rule book for banks, the new Banking Code of Practice. In operation since July 1 this year, the new ASIC approved Banking Code of Practice contains a big step up in protections for customers. Under the new Banking Code of Practice, banks will no longer: • Offer unsolicited credit card limit increases • Charge commissions on Lenders Mortgage Insurance • Sell insurance with credit cards and personal loans at the point of sale.

Under the code banks must: The ABA has also briefed the business community on the new ‘financing your • Offer low-fee or no-fee small business’ website designed as a ‘step accounts to low income by step’ guide on applying for finance. customers CEO of the Australian Banking As• Have a three day grace sociation Anna Bligh addressed the busiperiod on all guaranness breakfast on the new Code and the tees to give guarantors “Financing your small business” website. enough time to make “Western Sydney makes an enormous sure it’s the right option contribution to the Australian economy, for them with 215,000 businesses supporting more • Actively promote low-fee than 2.5 million people,” Ms Bligh said. or no-fee accounts to low “These events are important to listen income customers CEO of the Australian • Provide reminders when Banking Association to the concerns of both individuals and businesses on how we can make banking introductory offers on Anna Bligh. better. credit cards end “As part of our efforts to improve protec• Simpler and fairer loan contracts for tions for customers, we have a new rule book small business using plain English that for banks, the new Banking Code of Practice. avoids legal jargon “Businesses across Western Sydney will ex• Provide customers a list of direct debits perience tangible benefits from our new Code, and recurring payments to make it including plain English contracts that are easy easier to switch banks.

to understand and more notice and information if conditions change. “In addition to this, banks have created a dedicated resource, financingyoursmallbusiness.com.au to help business owners navigate through the process of applying for finance from their bank,” she said. Western Sydney Business Chamber Executive Director David Borger said financial institutions played an important part in supporting the growth of Western Sydney and that it was important that business and residents had confidence that they would be treated fairly. “Banks and financial institutions are not everyday businesses, they play a vital role in the economy through the lending of money to aspiring business owners and families seeking to purchase their dream home,” Mr Borger said. “A higher standard should always be applied to ensure that banks are living up to good customer service and community expectations,” he said.

Great walk ends at the Blue Mountains NEW 65km walking trail linking Parramatta to the Blue Mountains has been launched at Parramatta Park. The Great West Walk is a community-led initiative by the Walking Volunteers, who previously helped develop other great Sydney walks. “People are already familiar with the Sydney Harbour Walk, Great North Walk and Sydney’s Coastal Walks, and now the Great West Walk will open the door to the lesser known but equally beautiful bushland corridors, regional parks and waterways of Sydney’s west,” City of Parramatta Lord Mayor Cr Bob Dwyer said.

As a part of the project, City of Parramatta Council has delivered a new 1.2km walking track that runs along Toongabbie Creek between Old Windsor Road and Tucks Road, Toongabbie. The $850,000 Toongabbie Crossing has been jointly funded by City of Parramatta Council and the NSW Government’s Metropolitan Greenspace Program. The route traverses through Parramatta, Blacktown and Penrith Local Government Areas. To support the official opening of the Great West Walk, the Walking Volunteers completed the entire 65km over a period of five days.

A broad range of stakeholders have worked together to deliver the Great West Walk, including local councils, NSW Parks and Wildlife Services, and Western Sydney Parkland Trust. Support has also been provided by the Office of the Government Architect; Department of Planning, Industry and Environment; Western Sydney Diabetes; Western Sydney Local Health District; Western Sydney Regional Organisation of Councils (WSROC); and NSW Department of Sport. For more information, visit www.greatwestwalk.com.au

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Expanding Heritage heads to Hills QUEENSLAND-based bank has chosen Castle Hill as the spot to open its first interstate branch. Heritage Bank is Australia’s largest customer-owned bank, established in 1875 and with a 58-strong branch network in Queensland. Heritage extended its network outside Queensland for the first time when it opened a branch in the Castle Towers Shopping Centre in October.

“

We’ve chosen Castle Hill for our first branch outside Queensland because it’s an area with great community spirit, a strong economy, and the kind of people who can really benefit from the products and services we have to offer.” – Peter Lock. CEO Peter Lock said Heritage had taken the historic decision to choose Castle Hill for its first interstate branch after extensive research on numerous options. “Castle Hill is a wonderful area that fits Heritage perfectly and we’re absolutely delighted to become part of the community,” Mr Lock said “Heritage is a customer-owned bank that is renowned for providing outstanding value and service to its customers. “Our ethos is people first, so we’re different to other banks, because we focus on the best interests of our customers rather than making massive profits.

Heritage Bank CEO Peter Lock, The Hills Shire Mayor Dr Michelle Byrne and Federal Member for Mitchell Alex Hawke officially open the Castle Hill branch.

A shot of Heritage Bank’s Castle Hill branch façade during a launch event.

“Unlike other banks we’re opening branches rather than closing them, because we know how much people value being able to come in and talk to someone face-to-face. “We’ve chosen Castle Hill for our first branch outside Queensland because it’s an area with great community spirit, a strong economy, and the kind of people who can really benefit from the products and services we have to offer.” Sydney Hills Business Chamber Chairperson Nigel Rayner welcomed Heritage to the region.

Welcomed by Chamber “We are proud to have Heritage Bank, Australia’s biggest customer-owned bank, selecting The Hills to open its first branch outside of Queensland and becoming a member of the Sydney Hills Business Chamber. This move clearly shows a vote of confidence in the ongoing growth of the economy within The Hills and Western Sydney,” Mr Rayner said. “Having Heritage Bank establish a bricksand-mortar branch located within The Hills will provide easy personal access for local business owners and residents to face-to-face financial resources, advice and support. “We look forward to Heritage Bank becoming entrenched in the community within The Hills and being an active member and supporter within the Sydney Hills Business Chamber.” Mayor of The Hills Shire, Dr Michelle Byrne, also welcomed Heritage. “Our Council is a big supporter of local business. It’s great to see a new business opening here in The Hills, and providing quality financial jobs for residents who choose to work locally,” she said.

Heritage Bank Castle Hill branch team of (from left) Kujhit Kodali, Anna Campbell, Damon Baker, Kathleen Arnell, Corey Warwick and Asher Li.

“The Hills Shire Council has some of the lowest council business rates in the state and will continue to support local business.” Heritage’s Castle Hill branch design includes a number of features that are unique. Inside the branch is a “Community Wall” which allows community organisations to promote local events on a customised interactive map. There is also a Life Events wall an interactive touch screen that helps people identify the banking products and services best suited to those big financial decisions we need to make in our lives. The Life Events identifies seven major life events, like buying a first car, refurbishing for a growing a family, or retiring. Customers can then look up the products Heritage offers for people at their stage of life. Heritage Bank will celebrate its Castle Hill launch with special offers for new customers. These include the opportunity for people to get their hands on a limited-edition HOVA – a wearable payment band that was the first in Australia to link directly to the user’s transaction account.

Nigel Rayner.

The HOVA is like having a credit card in your wrist, allowing you to pay for purchases from your transaction account simply by swiping your wrist over a payment terminal. The Heritage Bank Castle Hill Branch is located at Shop 263A in the Castle Towers Shopping Centre.

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Role for Western Sydney Businesses in the Australian Defence Industry Sector The Access News Australia Regional Roundtable is an invitation-only forum of influential people that have an interest in developing business excellence, exchanging ideas and networking. The ANARR meets in a private board room setting. Following is an edited transcript of the latest Round Table session which was held at KMPG Parramatta boardroom. WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

DEFENCE OUTLOOK

EXPLORING OPPORTUNITY J IM Taggart: Well, good morning ladies and gentlemen. On behalf of Access News Australia, a most warm welcome. I would like to acknowledge and pay great respect to David Pring, Managing Partner of KPMG Western Sydney, and to James Digges from KPMG Western Sydney. Thank you very much for sponsoring this Round Table and bringing together some very good people who are going to share their experiences and knowledge with regards to Defence, particularly as it relates to Western Sydney. That’s the theme of today. And it’s really in two parts – one, dealing with our knowledge around this table – and secondly – and I think because of the influence of KPMG, we’ve been very fortunate to have a senior advisor from the Assistant Minister for Defence, Alex Hawke to talk to us by video and you’ll be able to take back information from that to take back to your businesses. Chatham House rules apply today. David, would you be so kind as to just welcome everyone? I’d appreciate that please.

David Pring: Sure. Before I just start, I’d just like to pay respects to the traditional owners of the land and to elders past and present. Part of the reason that I like to do that is, we’re in a region in Western Sydney that’s growing astronomically – transforming, changing – whatever word you like to use. And, the largest indigenous population is in Western Sydney. And I’d like to think that, as we grow and transform, there’s an opportunity for all members of our community to benefit and to grow. I’ll draw your attention just to look at the artwork on the wall. We’ve been doing some work with Doonside Tech High around connecting students across communities, both within the indigenous community, but also across the wider business community. And this was a completely unexpected gift that we had from the students at Doonside Tech High. And they presented us with this, depicting the connections that we were making within and between communities. So, I’d just like to note that. Welcome today. At KPMG, we see the growth and the significance and the change that’s happening in Western Sydney, with our office both here and Parramatta and in Penrith. What we’re finding with organisations in Western Sydney is, they’re looking to transform themselves – transform from being domestic producers to a domestic market to how do we become globally competitive. And so, today’s message around Defence and the discussion around Defence is a great way for manufacturing companies and others to transform themselves in order to grow. So, this is all about revenue growth for companies and what are the barriers to that growth and what do we need to do to assist organisations to grow globally competitive and part of global supply chains. Jim Taggart: Thank you very much. Would you like to add a few comments there, James? James Digges: I think that’s certainly very right. But it’s a good and wonderful

Biswa Kamila, Jim Taggart and James Digges.

story about helping young kids to get back on their feet and to become part of society. I think there was a key theme that came out of Pacific 2019 from the conversations we were involved in which were around one of the barriers for growth; where are the employees going to come from? We’ve already seen a real pinch on employees. I work across Defence and Defence Industry and then into Advanced Manufacturing and everyone wants the same people. Try to even find a Satellite Communications expert now. You’d have to pay five times as much as you would have paid five years ago for that sort of capability. And yet, this morning I heard on the radio that TAFE wants to make themselves more attractive to students. So, how do we join that up? How do we overcome those barriers? And it’s interesting to me that, often, barriers are unknown. So, all the stakeholders aren’t aware of those barriers. And if they were, they can come up with a mutually beneficial solution that costs very little – but, through that awareness, they’re able to solve it. What I’m really interested in today is to use this opportunity where we’ve got this Brains Trust around the table to really identify: what is the shopping list of the barriers that will enable your organisations – or, for those that are representing other regulatory or government organisations, to understand what that list of barriers is, so that we can have a conversation to overcome them. And if that means – for those that are representing primes around the table – that it opens up more competition within your supply chain, there are more options for you. If it means that it opens up employees that are available and trained and are the right people that are available to you, then that will be fantastic to drive growth in Western Sydney and drive it for the country, and also what the export opportunities are. That’s why I’m excited. Jim Taggart: Thank you, James. Normally what we do now, we just go around the table very quickly telling us about you and your story – just something so that people

can latch on to because one of the important benefits from where I sit here is the networking opportunities and developing of relationships over time. That’s critical in my mind, for whatever reason, to do that. So Biswa, can I start with you, please? Biswa Kamila: Yeah. Thank you. My name is Biswa Kamila. I represent Ouickstep. I’m the Commercial Manager. I’ve been with Quickstep for close to three years now. So, relatively young into the company – but I quickly learned about the Defence Industry. What James was talking about in the discussion for talent: I think we’ll probably find all of us are in the same boat trying to find talent. As a company, now we’re taking the long view. Rather than trying to find people with the skills, we’re trying to grow them. That’s the only way we can go forward. As we scale and grow, we are partnering up with TAFE to create learning academy that we can leverage off for a long-term basis. We are focussed on hiring graduates and spending the time and training them, so that we’re generating skilled leaders for the future. Quickstep has been a success story, but it’s taken its time to come to the limelight, I guess. We are a Advanced Composites Manufacturer and solutions provider. We supply many components to the Defence Primes including Northrop Grumman, BAE Systems, Marand and Lockheed Martin for both the F35 and C-130 programs. We are a listed entity. So, we’ve come a long way from being an R&D company in Perth. We’ve transformed ourselves from an R&D company to now a manufacturing company with an R&D Division. We’ve got an Automotive Division in Geelong – Warun Ponds – where their primary focus is in developing process solutions and technological capability so that we can commercialise and use them in various industries – Defence and Aerospace being our focus. Recently, we’ve set up an Advanced Manufacturing facility within our Bankstown site to manufacture flare housings for the F-35 program. And we’ve had the honour of the Prime Minister visiting us a couple of weeks ago and opening our facility, showcasing the talent of companies in Western Sydney growing from small players to world class manufacturers and solution providers. We predominantly export. So, we’ve got nothing locally. 99% of our revenue is export, and it’s all to the US. So that’s us – Quickstep – and I look forward to hearing your thoughts and sharing some of your experiences. Jim Taggart: Thank you for sharing that. Thank you.

The 2020 Defence Round Table at KPMG Parramatta.

Medhat Wassef: Medhat Wassef is my name. I’m a Defence Contractor. I have a small business, Swift Defence Services Australia. But I predominantly work for companies and help with Defence business. So, I’m engaged by Leidos Australia now which is occupying most of my time – about four

days a week. Having said that, I have spent 17 years in the Department of Defence, followed by 10 and a half years in SMEs, including six years in Western Sydney. And I’ve seen the rise and the fall of some companies in the Defence Market in there. I worked for Broens Industries for six years, which was a great success for a few years. And, through several unfortunate decisions by the government really, the company basically folded. And this was a company that was exporting to about 20 Defence Forces around the world. So I’m also involved in the Australian Industry and Defence Network. I am still on the Board of this group. And we’re celebrating our 25th Anniversary in November. I was Vice President for four years, and President for another four years. And we are predominantly an SME Group. Having said that, we also have members from the Primes. Thales is one of our major supporters. And the Primes, I guess, see AIDN as a channel communications industry and an engagement industry, which is a great partnership. So, I’ve seen obviously the improvement in the Defence Industry Agenda with Minister Pyne and the White Paper. And it is refreshing to see the government really trying to encourage the Defence Industry locally. So, that’s a major shift. And our group – the Australian Industry and Defence Network – was certainly one of the groups advocating for that for a long time. Jim Taggart: Thank you, Medhat. Thank you. Jason? Jason Elias: Jason Elias. I’m here on behalf of Precision Metal Group, a Western Sydney based manufacturing company. The strong points within our business are welding, manufacturing, maintenance. We started in Defence about eight years ago with Thales in Garden Island. The strong point about our business and our main focus moving forward is to take on those problems and the niche sectors that no-one else wants to touch, find a solution and put the Australian factor in there – because we are good at what we do in Australia. So, with Thales, we started about eight years ago – a very small portion of our business – maintenance and very niche in-situ machining services. We found that, in the past couple of years, welding is a very big problem in Australia from a Defence and an international arena. So, we started focussing on certification, compliance, making sure that an Australian company had international recognition so we could look into the export and support the local market at the same time. It’s been a very good success for us. In the past two years we’ve worked towards it very hard – a lot of certifications. We’ve accomplished eight different certifications in under two years. Proudly, every single one of those certifications has come through to Precision Metal Group with no NCRs. So, we’ve practised, we’ve preached, then we’ve gone out and proven. It’s gotten Precision Metal Group a lot of recognition, especially from the welding point of view. We find the bottle necks. We find the problems. We take them on. And that’s where Precision Metal Group does well. We like the challenge and we like to prove that Australian companies can produce and deliver that quality in the international arena. Precision Metal Group holds two international welding engineers inhouse. There are not many companies in Australia who have got a welding engineer, let alone two. To give you guys a comparison: Germany currently holds over 10,000 welding engineers. Australia has just under 100 across the whole country, and PMG holds two. So, we’re very passionate, very proud. We know we can. We know Australia can. Australia’s always proven itself to be an innovator and a country that delivers good quality product. We’ve had a challenge in proving that. So, certification, compliance, education, upskilling, the lack of resources that we were saying before – it’s a problem Continued on page 23

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

DEFENCE OUTLOOK Continued from page 22

across the board. We’ve put an inhouse training facility in, just to make sure we can keep our workforce up to date with all the changes that come to us every six months. And I’d like to say it’s every 12 and every two years. But there is a change in legislation, there is a change in standards, quality – whether it’s automation, upgrades, Industry 4.0, all those things need to be considered for the end product as well. So, 20 years in business, very passionate about welding and fabrication. In that aspect, we deliver well. Currently we hold 52 employees all inhouse. We pride ourselves on creating a family orientated workplace and we listen to what the clients are struggling with, and we take that problem on. We don’t promise them the world. But we go, we work on it in the background, we come back with a handful of solutions and we start teaming with them to work and find out which way is the better approach moving forward, keep the cost down and deliver the right quality and the right product. The past 12 months, we’ve been heavily involved with Land Forces work Phase 2 with Rheinmetall, delivered close to 72 different components for the Boxer that got delivered about 4 weeks ago now. Very proud of that. The feedback from that – very good quality from an Australian manufacturer compared to Germans who were up there – a very big pat on the back to the whole workforce within Precision Metal Group. The biggest success behind that was: no-one had a certification in Australia to weld armoured material, and we took that on. Within 6 months we had that certification. Within two months of having that certificate on the wall, we were given Purchase Orders to start delivering.

Therese O’Dwyer and David Pring.

SEA 1000 – that’s with Safran. And we’re still quite positive with the Australian Defence side. But I’d have to say that – and I say this very openly – and I’ve been in Canberra the last two days – the question of some real AIC is something which is very much on the politicians’ minds. They have seen some very bad behaviour over the past 12 to 18

“

Jim Taggart: Thank you, Jason. Very good. Will Hutchinson: Will Hutchinson, the Non-Executive Chair of Thomas Global Systems. I’m also the Chair of NSW Defence Innovation, a network which I’m very passionate about. Thomas Global Systems – formerly Thomas Electronics of Australia – has been a fixture of Western Sydney since 1956. It started up in Riverwood in 1956 to manufacture black and white TV picture tubes. The company – between 1956 and the end of the 1980s – manufactured I think three million CRTs. But fortunately, in the early 1980s, we got into the Aerospace and Defence Electronics area to build a business because we’re supported by Defence – but on the local build of the F18, the Seahawk Helicopter, got involved in the Collins submarine project and then the ANZAC Frigate – and gradually built up our skills. And then, used those skills to get into the commercial air transport/ avionics space which was a very successful business for us in the early 2000s. We got our FAA and IASA certification. That meant the bulk of our revenue moved offshore. We continued to do a minor number of Defence projects in Australia, but we realised that the Australian market was just too small. So, in 2013, we set up an operation in Irvine, California. But we very quickly won some work with the US Military, with the US Marine Corps and the US Army, and then started getting work under FMS. But our first big contract in the United States was an FMS sale back to the Australian Army. And we hadn’t been able to get into the Australian Army. And it turned out the Australian Army I think paid three times the price that they would have paid going direct. Anyway – so, our business with the manufacturing side has unfortunately largely moved out of Sydney – moved to Southern California – because – well, there’s certainly a problem with the Civil Aviation Safety Authority here. Their certification isn’t recognised by the overseas jurisdictions. And so, as much as we’d like to make the avionics here, we just don’t have a choice. We’re also supplying into the US Military. We basically must be in the United States. But the intention has certainly always been to maintain with the ... of excellence of engineering the company here in Sydney. We have fortunately – this year we have one – a couple of major programmes here in Australia. That’s with Rheinmetall again on Land 400 Phase 2 – and more recently, some

But we also export to around a dozen countries. So US submarines, UK submarines, French submarines have transducers manufactured at Rydalmere in Western Sydney.” - Gary Dawson. months from some of the Primes. And this matter now has the attention up to the Prime Minister. So, I say to Primes: Primes, you are going to be asked the question. David Pring: Good. Jim Taggart: We might talk about that later. Will Hutchinson: Sorry to bring it up now. But it’s quite a current topic. Jim Taggart: No. It’s very important, particularly with the whole range of obstacles and challenges in different things. David, would you like to give a quick précis of yourself – what your role is here? David Pring: So, David Pring. I lead our Western Sydney practice for KPMG. We’re all around assisting companies to grow – transform. And, as they’re on that journey, there’s all sorts of issues that each company has never faced before. Everyone thinks that it’s a unique problem. A lot of the issues that we get to see numerous times over – everyone, of course, has their own story, their own journey – but a lot of the themes are similar. So, we can assist companies through that period of transformation and change and growth. And so, from a Defence point of view, we see that very much as a revenue growth play for companies in the region. And I always find it, you know, interesting – we’re a region where we’re adding a population the size of Adelaide between here and Penrith and a population the size of Canberra

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

between Liverpool and Campbelltown and we have issues around there being a jobs deficit in Western Sydney, but we also have a skills shortage. How does that all make sense? So, we like to think that we’re able to bring some sense of relevance and confidence to companies as they’re changing in the current world. Jim Taggart: Well, you’re certainly doing that, if I can just say, with the growth of what’s happened here. You’ve been here what? – three years now, David? I just want to acknowledge what a big impact KPMG has made with the growth and the amount of staff that you’ve put on here. And I’ve seen that journey. Congratulations. Also, I want to make one other comment if I can – this is my own personal comment. I want to thank you for the work that KPMG does, driven by you, with regards to the philanthropic areas for Western Sydney. I’ve been very fortunate to work with KPMG in the sense of doing things for various organisations in Western Sydney. And I’ve just got to say that. It’s a value I hold dearly with regards to what businesses do right, but also what they do right – if people understand what I’m saying. So, I’m very big on that. So congratulations to you and your staff. Therese? Therese O’Dwyer: I’m Therese O’Dwyer. I’m from Regional Development Australia Sydney, which is co-located with DIN at UTS. So, we’re a not for profit organisation that was established by the Federal Government. And we have a Board. And Jim is our Deputy Chair. And really, our role is to look at the whole of Sydney – the 33 LGAs – and support investment attraction, economic growth and job creation for Sydney. And the way we do that is we run projects or support SMEs to their capability. So, our focus area over the last 18 months has been around trying to connect with Local Government and build their capability in delivering their economic development strategies. And through that, we deliver events or workshops for the SME communities which they govern. And so, we also run – and this has been in existence for about six or seven years now – the Sydney Aerospace and Defence Interest Group. And

over the last 18 months, it’s mainly been about connecting the Defence Industry. And we reach out to AIDN and everybody else when these events are on to connect to our suppliers. So, we’ve dealt with Leonardo and Hanwha over the last 12 months or so, just to look at supply chain opportunities for local businesses. We are looking at trying to build a better understanding by the SME community of the Defence Industry opportunities. But we’re trying to do it in a way that is less Defence and plainer English relay of information, because if you start at the pinch – at the Defence side of things – people don’t understand what you’re talking about. So, we most probably are going to be partnering with Liverpool Council. As I say, Council are our partners. They provide venues. They provide connection to the SME community or their business community in their areas. And they have a great – especially in Western Sydney – a great enthusiasm to do something and to build a good economic base in their LGA. So, we work from that side of government, and we hope to bring some knowledge to the business communities about Defence opportunities in a very plain English way. And we do that in other sectors as well. And we certainly have an understanding of what’s being delivered at the moment around skills and the STEM map around Western Sydney, and how it’s not joined very well, and that there is actually competing programs at the minute in Western Sydney – and in NSW really – that could be done a little bit better than what’s happening now. You don’t have to spend money. You can do it differently. So, they’re the things. Jim Taggart: And we’ll look at those obstacles going forwards. Thanks Therese. Tim? Tim Spencer: Thank you. And thank you for invitation to this forum. Every word that’s been said around this table just resonates with relevance to the role of the Western City and Aerotropolis Authority is. I’m Tim Spencer, engaged by the Authority and working particularly in the investment attraction space. The Western Sydney Aerotropolis Authority is a NSW Government entity established as part of the Western City Parkland team. Our mandate is around the 11,200 hectares of the Aerotropolis including the establishment of a Space/Aerospace/Defence precinct. In the investment attraction space, we are very interested in the full supply chain co-ordination and the implications for what could happen in Western Sydney. The first step of ours is to get a number of industry players involved as the core of Foundation Partners for us, to help us get some ideas together about what the precinct might look like, how it might fit into the local supply chain, but also the domestic supply chain. And we’re working through it now – myself and other people in the Authority, and obviously Defence experts. And it’s great, Therese, to hear you say about “plain English”, because I get lost very quickly in the discussion. We’re very interested in the training agenda. We’re doing a lot of work in the training agenda with Universities which we are engaged with – and there are a number of those. There’s a lot of work going on now. The issue of skills and training resonates strongly everywhere Continued on page 26

The Round Table in action.

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DEFENCE OUTLOOK Continued from page 23

we go. So, we recognise that as an area where we’ve got the ability in Western Sydney to do something different in terms of – you know, it’s not a Greenfield Area and so forth, but there’s a lot of Greenfield aspects there. It’s a City Deal. It’s tamed in size. We almost feel we’ve got an ability to try a few things and put new ideas up the top and try and get their endorsement for it. So, keen to hear from yourself on that issue. Supply chain issues and building the supply chain in Western Sydney on the basis of what’s already there – and we continue to be surprised by what is there – I think is obviously a very important aspect for us – and again, very keen to hear around those types of issues. While we are engaging currently directly with the big Primes, we’re not stopping there. The real game will start early next year when we want to talk much more broadly to some of the big players, both in Australia and globally, to learn more and to make sure the precinct is set out in the best way where industry can make occasional decisions – not us. We’re trying to set up the precinct in the best way so the best locations can add to the comparative advantage which we think is there already in many ways in Western Sydney compared with some other areas in Australia. We need to work hard on that to see how we add to that, and we need to position or enable various entities to position themselves in Western Sydney, so it maximises their comparative advantage. So, we’re very much focussed on an industry group. Jim Taggart: Thank you for that, Tim. Can I take the opportunity? You said things are going to develop next year, and greater consultation and interaction. May I ask an invitation on behalf of everybody here, that they are invited to that, in the sense that that happens? I always look for things to come out as an outcome for everyone. What you do with the information or whatever is up to you. But you can’t do something if you don’t have the information. So, I’m asking. What you’ve said I think resonates with many people here. I’m putting my head on the chopping block by saying, through James and David, that I’m sure most of you would like to be involved with that quality of information. Tim Spencer: Absolutely, both in terms of information we can provide in terms of what is going on, and what are the relevant. Jim Taggart: Correct. Tim Spencer: And we want to get that information out. And things are starting to happen where more and more information is coming out. And then, secondly, in terms of who want to make location decisions, want to know more about what’s going up for their own individual interests. We certainly want to go out very broadly and talk to as many players as we can, and invite participation if there’s a will for that. Jim Taggart: Thank you. And I’ll leave that with James to orchestrate and so on. Gary?

The Defence Round Table in action.

Gary Dawson: Thanks Jim. Gary Dawson’s my name. I’m with Thales. And thanks for the invitation to be here. Thales – we have our head office in Olympic Park and we have a huge facility at Rydalmere and out at Orchard Hills. So, just across those three sites, around 800 people. But more significantly, Western Sydney really provides the heartbeat of our supply chain. So, it’s critically important – you know, whether it’s the small arms factory at Lithgow – and a lot of suppliers into there in Western Sydney – or if it’s Garden Island, which is not in Western Sydney, but as I’ve mentioned earlier, a lot of the suppliers are into that facility. So, this region’s critically important to us. Our supply chain is critically important to us. And I think we are a case study that demonstrates you can create – from a Primes perspective, you can create and build a sustainable high-tech supporting manufacturing business in Australia. And I think Will’s made the key point this morning – and I’ll come back to that in a minute – around risk and priority. The model must be technology transfer integrated with research institutions and agencies here, build a domestic supply chain that creates real industrial capability and have a view to export from the start, because that gives you sustainability. You know, Thales started here 30 odd years ago with a handful of people. Now, in Australia, there’s three and a half thousand people. And the facility at Rydalmere I think is a great example. I mean its key role is developing and manufacturing underwater systems such as the sonar systems for submarines and surface ships that are the underwater eyes and ears of those vessels’ critical capability. And over the years, that facility has developed to the point where it’s one of the very few places in the world where we take – we start with the mineral sands that come in, in containers. We bake the ceramics using a secret formula that creates the ceram-

ics at the heart of the sonar transducers, and we assemble the various transducers that go into the sonar systems. And we do that for the Royal Australian Navy. But we also export to around a dozen countries. So US submarines, UK submarines, French submarines have transducers manufactured at Rydalmere in Western Sydney. I think that there’s – we’ll come to the hurdles. But I think the key point that Will made is that that happened here in Western Sydney because of that big Collins contract and the requirement in that contract for technology transfer, which is at the core of how it began in Australia and we’ve duplicated that model across air traffic management and vehicles and small arms and all sorts of things. It’s the same model and it’s heart is – it’s real advanced manufacturing capability here in Australia for the Australian high performance requirement. And if you can deliver the high-performance requirement to Australia, then you’ve got an export product. So, but we’ve got to – in these big contracts that are coming, the key is that we ensure that not just the fabrication and the welding is critically important, but that the smart systems that go into those platforms are done here in Australia. I think this is the risk now. Jim Taggart: And I’m going to take you up on that in a moment. We’ve got more questions we’ve got through. All of you bring immense capital to the table. And I want people to feel comfortable in sharing that. Gary is Vice President of Strategy. So, what I’m saying is: I want to hear what you’re talking about Strategy, going forward. Will Hutchinson: Let me just say that what Gary says certainly matches exactly with what myself and the SME sector believe – and Thales, I think they practise what they preach. Thales would be, I suppose, a model Prime in the Australian environment. But they are probably the best. And I often say that publicly. You owe me, Gary. Jim Taggart: Great, James.

James Digges and Will Hutchinson.

James Digges: Western Sydney has a huge role to play in the Australian Defence Industry sector and then export. But a lot of the organisations here don’t know how to play. They’re either not aware of how to play, or they’re not at that level yet. They’re very good technically. They’re probably very diffracted in the way that they do business. And they don’t understand how to step up to the table. What I’m passionate about is helping them to be able to do that. And collectively, I think we can do much better – both from an AICP perspective, to use that acronym – so, Australian Industry Capability – but also from a State level, from an education perspective – from Universities. I work with Defence. I work with industry. I work with Universities. I work across all those areas. And I think I know the stakeholders. And I’m very

keen to bring them together, so that – there’s so much attention given to shipbuilding in Australia, into Adelaide, that I’ve been working with shipbuilders and I know where the value lies in that ship. It is not in the hull. It’s the systems. And my vision for Western Sydney is that it is the systems integrator for Australia. And then, as the export market grows, for a large portion of the world. And we’ve got examples of that happening already. But we are nowhere near our potential. So, the growth that we can generate to make a sustainable model to make that happen – then I’m excited about it. Jim Taggart: Thank you, James. Let me set a couple of points. One quarter of Australia’s Military and Civilian Defence personnel are in NSW – just to tell you that – 36,000 additional jobs – and that’s not indirect as a multiplier – just direct. Another aspect that’s important: expenditure now is around about $9B just in NSW approximately. So, let’s get right into it. Tim, what are the barriers in your supply chain? I mean, you’re at one end of the cutting edge of – you know, you’ve got everything there. What are the barriers to you that you see that are opportunities for people here? ... quote. I think that’s critical. Tim Spencer: The barriers in the supply chain are probably twofold. There is a barrier between Primes and SMEs connecting. That’s an area which we need to look at in terms of solutions our processes to try and have facilities which ensure collaboration between Primes and SMEs. And then secondly, I think it is probably information; your point James, just about information – about what are the opportunities out there. And then thirdly, probably, making sure that all the skills are there. Jim Taggart: Tim, that’s nice. What does it really mean and I’m trying to go to another level here, to think about? You have a vision for what you’re doing out in the aerotropolis and so in. What are the barriers, though, in terms of attraction, to get the qualities in those supply chains for you? Tim Spencer: I understand what you’re saying – and I come back to those three things. I think its barriers to the connectivity with the Primes, and how that occurs. I think you need a root analysis of what the causes of that are before you can assess what you need to do. Jim Taggart: Yes. I think that’s what I really mean. Tim Spencer: So, I think that’s for a broader discussion around this table: what is stopping that. I think we really need to understand - well, how do we get the knowledge Continued on page 27

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DEFENCE OUTLOOK accountable for our supply chain. From the security point of view, Defence will hold us accountable if there’s a hack of one of our suppliers or if something sensitive goes missing. So, that’s why they’re in the tent. But, you know, you do have very high-performance requirements – and that’s essential, to me, to ultimately deliver the capability advantage to the warfront. It’s essential. And we’ll have examples where we’ll work with a company to bring them up. So, we’ll work with them to introduce lean manufacturing, for example, because we can see that they’re a good supplier, but we’ve got demand that’s going like this and their maximum output like this.

Continued from page 26

about the potential connectivity between some of the big players we hope to establish in the Aerotropolis and the supply chain. And then thirdly, there’s a very big question about training – the obstacles and the need for a new model being driven by what industry needs and how training can be responsive to how those needs change. Jim Taggart: Any thoughts from people? Yes, David. David Pring: I’ll just throw a comment on what we’re seeing with clients in the manufacturing space in Western Sydney. A lot of our clients are tripping over opportunities in the Defence industry and finding a small opportunity or an opportunity that comes to them almost by chance. And there is something around the manufacturers then pulling back from developing a strategy to expand in that space as a deliberate approach. I’m not quite sure what that barrier is. And, whether it’s understanding what the size of the opportunity is for companies might be part of it. My understanding is it’s something like 400 companies in Western Sydney that are involved in the Defence supply chain in some manner. Others may have better information on that. Gary Dawson: A hot topic now in Canberra is supply chain mapping. So, the government’s worked out that, unless they act and make it very clear what their expectations are, this won’t happen by magic – that SMEs and the supply chain will receive work. Still a way to go, though. And so – I mean we’re doing that ourselves – getting much more detailed knowledge of our supply chain. But two suggestions to pick up from Tim: one is working through AIDN and those groups. So that, for us, has been an incredibly valuable relationship over a long time in terms of identifying SMEs that match up with what we need. And out of that really has come a regular drumbeat of industry engagement of leaders. We’ll run a seminar in Western Sydney, or we’ll run it for our underwater systems business, or we’ll run various things through the year, promoted through AIDN and other bodies, and that builds the network. Mind you, we’ve already got the network of SME clients last year. It was over 1600 Australian clients, mostly SMEs $500M spend through that network. Jim Taggart: Can we just explore that, because they’re interesting metrics here. When you say you’ve got one organisation such as yours facilitating interaction with 1600 or 500, if that’s what I heard, that’s – in my mind – big business.

Gary Dawson: We’re doing that with the Lithgow precinct as well, to an extent – providing plant and some of that – reducing some of the capital burden.

David Pring.

more than that on our books. But obviously we don’t – not every supplier on the books gets work every year. It just depends on the flow. So, that’s just for our company. Tim Spencer: You know what’s out there. This is your supply chain – or potential supply chain. James Digges: Yes. Tim Spencer: Do you know the gap between what is there and what you’d like to see for current requirements, and have you turned your thoughts to how that needs to grow and be flexible as it grows? Gary Dawson: Well, two things. We actively seek that out. So, that’s the point of industry engagement. And often, it’s done within businesses. So, here in Sydney, I come back to the Rydalmere business of underwater systems. They’ll run an industry engagement event, or they’ll do it through AIDN regularly. And they’ll say – and we do a national one every two years – here’s where our business is heading. Here are the gaps that we see. And, you know, typically we’ll get a couple of hundred businesses turn up to those engagement events. So, I don’t know how these guys met Thales. But it might be interesting to get the story. Jason Elias: From our point of view, eight years ago, it’s just we had a tool that they were searching for. We were the only ones in NSW that had that tool. So we got on. We would be one of the companies that’s not on your 1600 list. We’d be on the back end where they only call us in from time to time.

Gary Dawson: That’s nationally.

dance to the right SMEs to go to that event. Like, they wouldn’t call us to go to the sonar ones, knowing that we weren’t a good match for that. So, you don’t get an abundance of people there. And then, they’re going: How do we get on? – and they’re talking a completely different language from that point of view too. Jim Taggart: Thank you, Jason. Just from Therese?

“

Western Sydney has a huge role to play in the Australian Defence Industry sector and then export. But a lot of the organisations here don’t know how to play. They’re either not aware of how to play, or they’re not at that level yet.” – James Digges.

Gary Dawson: Yep. Jim Taggart: Yes. Gary Dawson: Well, that’s our data for 2018 – just over $500M spend with Australian suppliers. Now, we know that they’re predominantly SMEs because that’s the nature of the supply chain. And there was 1,607 Australian suppliers. Now, we’ve got

Jason Elias: From an AIDN point of view, it’s been one of the tools that we’ve used as well. So, all our roadshows, all the little conferences and networking events you guys put up, we would find out about that through AIDN. And it’s a good tool. It works. And they tend to put out the call for the atten-

Therese O’Dwyer: How do you know? I mean the call goes out through, say, something like AIDN or it could go through SADIG (Sydney Aerospace & Defence Interest Group) or it could go through similar networks. James Digges: Yes, SADIG. Therese O’Dwyer: Or ICN or whatever, because they’re people that are already in the space. How do you connect with the people that aren’t in the space? How do you bring them into that circle? Gary Dawson: Look, it’s a good question. A lot of the time companies approach us. So, you know, PAC was classic. A constant stream of people just coming up to the stand and saying: We do X, or: We do Y. And so, we connect them up with our procurement team to assess whether they’re a match or not. The thing about Defence industry is: you have a very high performance requirements. Will Hutchinson: Like barriers to entry.

James Digges and Jim Taggart. WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

James Digges: So, there are barriers to entry. So that means, for us, you’re screening those carefully. And then, when they’re in the supply chain, obviously compliance and security are two big issues. I mean we’re held

James Digges: That’s right. And I sort of come back. A key point, though, is this starts with very clear signalling from the buyer of what they expect. And I think the message is getting through at government level. I’m not sure it’s fully there yet, all through the chain. Gary Dawson: Agreed. Then, the interesting thing is: how do you unleash the investment that the buyer is prepared to make in development of capability for the mutual benefit of the Prime as well in that, over the course of a large project where you do need to have an AICP (Australian Industry Capability Plan), how can you be developing further Australian SMEs to join the supply chain so that, as you’re getting half way through, you’re not held ransom to the few and you’ve actually got a competitive landscape in which you’ll be competing and driving price down, which then allows you to be more competitive. Jim Taggart: Medhat? Medhat Wassef: I have a point, very relevant for this. Now, this is not a plug for AIDN. But we realise that there is a requirement for SMEs to be Defence ready. The customer requires certain standards – and for good reasons – because our daughters and partners and family members are on the frontline, and we’d like to give them the best fit. Yes, Australian input is important. But that’s not to compromise the quality and the standard. So, the standards are important. The cycle of Defence business is not an easy one. A lot of companies – SMEs particularly – have unreal expectations. They don’t have the experience. They don’t have the right people. They don’t have the right standards and quality accreditations. So, Defence readiness is one area of importance. And we believe that it’s in the best interests of Defence, in the best interests and in the best interests of Primes to have the SME “family”, if you wish, ready to serve the Primes and ultimately serve the customer – the Defence Force. So, that’s one area. So, I believe there is a requirement that all those partners – the SMEs, the Industry Associations, the Primes and support from government – to get our local industry ready for Defence ... We’re talking about a shortage of skills now – and which is real – and I work for a Prime as well, in that sense, looking for – fishing for capability. And there is a shortage. But if you think about when the $200B program really kicks in, the shortage we’re talking about now will be multiplied many times. And then, the Primes – particularly, I’m talking about the parent companies over there – they’ll have a good excuse to say: Look, the capabilities are not there. You know. The capacity is not there. So, I think we need to work together now, with a lot more support from the State Government in particular. And the State Government has been – there’s been a lot more attention to Defence over the last few years – but certainly there’s a lot more room to improve there. Now, I compare that to the other States where I worked, as well, in Victoria and in South Australia. It’s no match whatsoever. They are pouring – and, lately, Western Australia and Queensland – they’re pouring resources in there and building the local industry. I agree with James that the money is not just in the hull. It’s in the Continued on page 28

DEFENCE OUTLOOK Continued from page 27

systems. But the reality is when Rheinmetall sets up a Centre of Excellence in Queensland, a lot of business goes to Queensland as well – not just the metalwork. And the same thing with all platforms. So, they become a magnet to other phases of industry. So, I guess, I’ve talked about the requirement to work together to get the SMEs ready – the readiness part of it. That could be through a Sponsorships Australian Program, through whatever means it is, through Apprenticeship Programs and Internship Programs. But also, the other thing is in relation to working together as a team – State Government, Primes, SMEs. NSW has got lots of resources, but you have a lot of fragmented effort. You have groups in the Hunter, groups in Illawarra, groups in Shoalhaven, groups in Sydney – even more than one group in Sydney. I mean we need to work together a lot smarter, not necessarily to kind of combine in one group, but to work together a lot smarter and a lot more co-operative. Jim Taggart: Thank you for that. Sorry Jason, please. Jason Elias: So, a couple of good points. In regards to answering the question: How do we get SMEs ready – so, plain English was the terminology used before, SMEs being a big pool of the supply chain as well, the understanding from the SME what they need to have in place to be Defence ready. A lot of the organisations – and many, as you pointed out – have Defence ready seminars. An SME who doesn’t have the admin support and the upper management support, but they produce a good quality product doesn’t understand. So, everyone tells us how we need to be Defence ready. No-one wants to talk about how much cost is involved in being ready or getting ready. Then, they go down that path. They go: Yeah, we’re going to go for this. All of a sudden: We need a half a million dollars. We’re losing a lot of money. And that we’ve started the journey. James Digges: And it’s going to be an extra year before you get paid. Jason Elias: Exactly. So, what PMG’s starting to do is work with AIDNs and, you know, Weld Australia and a lot of these other organisations to say: OK. We’ve gotten a particular certification. We needed it for – you know, 30% for that sector and a bit for that sector – and Defence ties into that. So, it’s not as much of a big investment for us, because we’re still getting paid from other little sectors. How do you invest in that sector where you’re currently getting paid? Plus 10% of that can bring you some work for Defence. That’s what we’re trying to do now with other SMEs. We’re going into our manufacturing facility where the guy was a welder, and a really good welder. He’s worked his way up through the ranks. Now, he’s managing his business. He wants to know in plain English. Therese O’Dwyer: Yes. Jason Elias: He wants to be on the SME supply chain. He is an SME. He doesn’t

Gary Dawson.

want all the red tape. As soon as you start putting red tape, you lose that. Now, you lose your support in regard to all the talent we have in Western Sydney and how we can get them to be part of the supply chain, because we’re putting little hurdles up. Plain English is very important for them to accept or not accept that challenge, if they choose to want to go ahead. We’re presenting in Bendigo in a few weeks with Weld Australia. We’re going to explain in plain English to other SMEs who want to tap into the MARKET – all those wonderful programs that are going on – what it means to be certified, the cost behind having certification. I explained to you guys before, PMG has two international welding engineers. It’s a requirement for DIN 2303, which is the Rheinmetall German Standard for armoured welding. That’s why we have two. Yeah. If I didn’t have that, I wouldn’t have it. So plain English. And all the seminars that we can go to: You guys have got to be Defence ready; you have to have this. Explain to an SME what I say 27001 type security certification is all about – you’ve lost them. And now, you haven’t even got them with ISO 9001, 14000, 45000 – all those quality standards that you need to have. So, it’s very important. James Digges: There’s an interesting role, isn’t there Jason, in that how you as an SME can be part of the supply chain for a Prime, forming part of the Australian Industry Capability uplift? Jason Elias: Yes. James Digges: So, how do you outsource some of that AICP – not just production, but AICP? Jason Elias: We’ve studied the AIC. We’ve studied Defence Ready. And we’re putting it in plain English and telling the guys next door to us in Western Sydney: Guys, these are the things you must understand. If you’re able to attend to some of these and have a journey over a two, three-year period, they’re achievable – because we have. We’re an

example. So, when we get up to talk, they’ll say: Oh yeah, it’s impossible. No, it’s not impossible. We have done this. We’ve done this in a 2 year period. We were all focussed. We had the money. We could support it. We could fund it. But we studied what we needed first. Not just: you need to be cyber security ready – ISO 9001. And then you get to these. You’ve invested $300,000, and then they put another hurdle up: You need a welding certification as well – and you’ll crush an SME doing that. But we need to support them with the plain English upfront. And if they take that challenge on and they want to go forward, there’s a lot of support in the industry to help them get there. So, that’s my input. But Rheinmetall’s taken that on from our point of view, to work with them to get other SMEs involved and have PMG educate them to be a supplier to Rheinmetall. We have no problem. They’ll go against us as a competitor. There’s enough. We need more Australian content and Australian SMEs. We can’t – PMG can’t do it all. Even if I wanted to triple my workforce by three or four, I will still not be able to deliver what they’re looking for. So, build the Australian content, the Western Sydney – whether it be Queensland, it doesn’t matter. There’s enough for everybody. You just need an example of how they can get there and guide them. We can’t just sit back and say: This is how we did it – and let them go. PMG’s got a responsibility to the Primes to help get other people into that book. Jim Taggart: Thank you for that. I’d like to get Biswa’s thoughts if I may – just what your thoughts are to Quickstep. I want to hear your obstacles. And Tim, just your reflections before we stop at quarter to 11. Biswa Kamila: Well, first, some of the points that we mention here, I think it’s common to everybody. Talent – which you talked about. You mentioned the point about nobody tells you that you’re going to have to be ready and spend the capital well in advance of getting a contract, because the Primes won’t give you the production contract if you don’t have the assets on the ground. So, you’re going to have to carry the overheads for a long time, sometimes. And that’s not easy to do for SMEs. These are some of the “SME-type” issues. So, if we just go back to the macro level – let’s talk policy first. Australia is a country that has AIC, not necessarily offset. Some of the other countries in the world, they’ve got strong offset rules. When the Primes try to sell their platforms: it often boils down to “Right, your offset commitment is twice; you’ll get X”. So then it gets divvied up. Australia is trying to play at that sphere where AIC is not really driving anything. We’re having to compete at a geo-political level. Tim Spencer: Well unfortunately, within CASG, AIC comes way down the bottom. So, I can say that.

The Round Table in action.

Biswa Kamila: Exactly. So, all I’m saying is that we’re at the bottom of the list when it comes to playing at a level field and internationally. The only way we get into

the international market is when it’s linked to an acquisition in Australia. That’s when suddenly everybody wakes up: That’s when SMEs get talked about. So, these are – I guess – a policy at the geo-political level that we’ve got to deal with. Talent, we talked about. That’s a local issue – NSW, probably Australia-type issue. But then, there’s the commercial landscape. We talked about capital. One of the things we also have found in the past is the speed at which the Primes operate. Look, they’re big corporates with multiple sectors and divisions. The speed at which the SMEs can operate, and the Primes can operate are two different speeds. So, how to step up to that table – how to manage the relationship – be in the driver’s seat – that’s the key. If I focus on some of the other key SME barriers to entry, you’ve all pointed them out. High performance requirement – yes, that exists. But that means you need to do so many more things to get ready – but most of us don’t know. Quickstep has been fortunate because we’ve been in the industry for a long time. And the relationship with the Primes – we’ve been able to understand that and invest well upfront to sort of be ready. But then it comes to: how do you contract in the context of “FARS” and “DFARS”, for example, if you’re dealing with international platforms. That’s not easy. And SMEs don’t have large procurement teams, legal teams or contracting teams who can decipher that and just go: Yep, that’s exactly what we need to do. The Primes have large teams doing that. So, it sounds cynical, but navigating the FARS and DFARS, for example, can be challenging. Primes and other companies are willing to stand up a new supplier. But that only happens a very few times and if there’s a new program or a new platform. Rarely will a Prime spend the money when it’s a mature platform and you’re trying to stand up capability – because they’ve already spent the money standing up the supply chain previously. If it’s early on in the program – because government is going to spend the money – it’s quite easy for the SMEs to get into the supply chain.. If you come in very late into a platform, your barriers to entry are very high – astronomically high. If you’re early in the program, you’ve got a fair chance of winning something if you’ve got the technical capability, because then the Primes will help you navigate some of this complexity because they see value there. James Digges: You’re solving a problem. Biswa Kamila: That’s right. So now, what we’re trying to do as a company, is – our value proposition is: “Let us develop Australian supply chain” – because there may not be offset mandates – but they still can get Global Supply Chain (“GSC”). Then, there’s the benefit of having suppliers down the road. We can go and talk to them if there is a problem. We’re not transacting with a supplier that’s in an international time-zone. But that’s not always easy to do. A lot of the times international players are already qualified onto the platform. So, you’ve got no choice but to transact with them. So, spending multi-million dollars to stand up somebody isn’t necessarily on everybody’s [the Primes] agenda. James Digges: More reason to seize the opportunities when these big programmes come along. Biswa Kamila: That’s right. James Digges: Because if you don’t grab those opportunities... Jim Taggart: Will? Will Hutchinson: I’d just like to raise two barriers we see. One’s in the commercial aviation space. I think that this would be critical to establishing significant aviation support facilities out at Western Sydney. The Civil Aviation Safety Authority – their regulations haven’t been harmonised with the US FAA or the ARSO. And there’s no reciprocal rights. For the aviation industry in Australia, this is a huge barrier. Most other countries Continued on page 29

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

DEFENCE OUTLOOK Jim Taggart: Well, let’s work from the assumption he’s not going to be there and if he does come then that’s fine. Steve, on behalf of Access and KPMG this morning Round Table, thank you very much. And we ask you to pass on our kind thoughts to Minister Hawke for making himself available – or at least the intention of doing that. I’m very fortunate to have Alex, or if I could say, the Minister, as a friend and for him to make himself available and his resources is most comforting. So, thank you. And I’d ask you to pass that on, on behalf of Access and KPMG this morning, and our various colleagues here around the round table, Stephen.

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have harmonised either with the FAA or the ARSO. And so, you know, there is reciprocal acceptance both on the manufacturing side and on the maintenance side. And we have been trying to get CASA to do this maybe for 3, 4, 5 years. It just seems to be in the too hard basket. It’s with CASA now. We have tried very hard. We’ve see the Ministers and things. But CASA just seems to be for itself. And then, in the Defence issue, the question of ITARs and there’s this US system called the NTIB – National Technical Industrial Base – now, there has been legislation that passed through the US Congress back in 2016 which was called The McCain Amendment, and that was meant to provide some access to Australian companies and the UK companies as what Canada has at the moment – but for restricted Defence information. So unfortunately, the Department of Defence here hasn’t been pushing it very hard. And so, basically, we’re getting no further down the track today than we were I think in 2016. And, you know, I think that’s a disgrace.

Stephen Moore: Absolutely. And I’m sure he’s sorry that he couldn’t be here. And I as I said before hand, if the Division finishes, I’m sure he’ll try and get here. Western Sydney obviously is very important to him, and he would be here if he could. Biswa Kamila.

Jim Taggart: yes. Jim Taggart: Will, can I just ask you a quick question, because I want to go to Tim. Hard question. But is that structural and/ or political? But I’m just interested because we’ve got government here – nicely, I say that. Will Hutchinson: I think it’s structural here. It is going to take work in the United States because, you know, obviously there is in the United States a lot of pressure to keep work in the United States. And anything that would change that, there is reluctance. But I think there is sufficient goodwill in the United States and in the US Congress and the US Administration – to actually make that happen but if the people in Canberra, you know, actually – I suppose – believed in it and did some work. James Digges: There’s no case history of Defence exporting out of Australia. But it takes time to get the awareness and then the activity. Will Hutchinson: But those two things – the harmonisation of the CASA regulations, both for Part 21 which is the manufacturing side and the part 145 which is on the MRO side, would be a huge boost to the Australian Aviation Industry – and then, secondly – the sorting out of that ITARS/ NTIB situation would be a huge boost with the Defence Industry.

James Digges: Unless they’re very systematic – and Jason was talking about it being systematic and having that upfront approach to that. So, minimising that barrier you’ll get Universities and the plant that they need from a research perspective, from a lab perspective, even from a manufactur-

“

We believe that it’s in the best interests of Defence, in the best interests and in the best interests of Primes to have the SME “family”, if you wish, ready to serve the Primes and ultimately serve the customer – the Defence Force.”

Jim Taggart: Thank you. I think we’ve heard some pretty good stuff here this morning. Tim Spencer: There’s an incredible amount of commonality in terms of the comments which have been expressed. I won’t try and go through those again. But essentially, the message is around the importance of the supply chain, and developing that supply chain, the barriers and the risks to it, etc. Looking at some of the potential ways forward, I think is the important thing from here. Jim Taggart: Yes. Tim Spencer: And very much taken by the comment that there’s no one individual around this table or one party or one sector which can solve this. It needs a lot of work together – and co-ordinated – which is an important factor. I’d just like to ask one question: if you were planning some new commercial/industrial precincts in Western Sydney, what are the one or two things you would plan for? And they could be either in the physical sense – systems were mentioned. They could be in the regulatory sense. James Digges: It’s a big question. I might kick off. It’s a reduction of the barriers to entry. That’s why I mentioned capital and the availability of capital. That’s a big factor. So, how can an SME who hasn’t yet won a contract generate access to capital so that they can create a plan to be able to then have them operate before they’ve won a contract? And the answer is: generally, they can’t.

- Medhat Wassef. ing – Sydney University’s got an Advanced Manufacturing Precinct being set up in Western Sydney. Jim Taggart: I think, if I can just say, Tim – I think that’s a very good reflection – the whole area around collaboration. And you’re in a position where I think you can help drive that as well in your policy making. Tim Spencer: And at the heart of our model for developing the Aerotropolis, particularly for Advanced manufacturing is that collaboration between industry and government, including through appropriate design and provision of facilities at precincts, people who are locating there. The SMEs who might want to come in for a time and Universities, of research and education. So, that’s at the heart of our model. What we’re trying to grapple with now is how we operationalise that. It’s alright as a concept.

There I see is another key role collectively for us to play. Therese O’Dwyer: And if you look at Hanwah, the previous supply chain workshop that we did for them, it was really us partnering with another organisation that was really contracted – you know, paying. So, there’s a business connection sometimes too. I mean with the international Primes – that seems that the Primes are introduced to a supply chain that seems to be of value and whatever, but it’s all based on a model where the contractor supplies what they should do – but whether they’re motivated to create better access. Jim Taggart: And Theresa I’m going to leave it there because I think people might want to gravitate to each other while they get a cup of tea. LUNCH BREAK Jim Taggart: As everyone knows we had planned to bring in then Assistant Defence Minister Alex Hawke by video at this stage. However, we have been advised that there’s a division in the House, which means the Minister has to go down and vote. So, what’s going to happen is: his senior advisor, Stephen Moore, will be definitely on the line. Video is live with Ministerial advisor Stephen Moore on video to the room. Jim Taggart: Steve? Stephen Moore: Yes. Jim Taggart: You can hear me. I’ve got questions that I’m going to ask you. Stephen Moore: Thank you. I need to be very clear at the start and say that I can’t speak on behalf of the Minister and am not representing the Government. I do have a bit of knowledge on this subject and so I’m happy to participate until he gets here, if that’s helpful to you.

Jim Taggart: And we know that. And we respect that as well. Stephen, we’ve got several questions. We have a number of people around the table who are very influential in the Defence Industry – our very stakeholders from government to large companies and so on So, you know, we’re very interested in what you have to say at a Ministerial or Federal Government level. So, let’s start with the question that says – or looks at the up and coming opportunities that can arise from the Aerotropolis initiative? You know. What do you see, “you” being the government, of course? Stephen Moore: So, the Aerotropolis obviously is a big initiative that’s designed to open up opportunities in Western Sydney and some around Australia – but particularly in Western Sydney. And the fact that you’re seeing big Defence industries like BAE and Northrop Grumman involved in that means that there are opportunities for smaller businesses that feed into those Primes and those supply chains for those businesses across Australia but especially if there are businesses in Western Sydney that then can tap into the supply chains for those Primes. Aerotropolis, as you’re aware, is going to provide innovation and education facilities to train skilled workers and that’s exactly the sort of thing that the Government is looking for to support Defence industry. Jim Taggart: I think, in theory, that’s excellent – and I think we all would agree with that. Can we just drill down – take a bit of a deeper dive – in some of the things that are emerging in terms of the Aerotropolis that are opportunities in the supply chain. I mean you spoke about two very large companies that have won contracts and have taken on tenancy at the Aerospace. Stephen Moore: I’m aware that the NSW Government, for instance, has signed a series of 10 arrangements with a number of international players and Australian players. So, it’s not just those two companies. So, it’s really getting a number of Primes involved in Defence industry that will allow Continued on page 30

James Digges: So, in the absence of anyone else jumping in, I’ll pose it to the people. How is Hanwha now engaging with Western Sydney businesses? Will Hutchinson: Very slowly in Australia. Therese O’Dwyer: Yes, they are. James Digges: So, what are the mechanisms that we’re making available for Hanwah to engage in Western Sydney businesses?

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

Gary Dawson.

DEFENCE OUTLOOK purchase Defence equipment directly from suppliers. So, it can be a mix.

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opportunities for small businesses as they go. For instance, I think the precinct’s going to have a Space Industry Hub that will have 18 Space small businesses involved. Education institutions are attached to the CSIRO as part of that Space Industry Hub. There are also agreements with Universities to establish a higher education precinct in that area. And this, we’re hoping, will generate opportunities, then flow-on effects for the businesses in the region.

James Digges: OK. But is there an initiative underway within the Australian Federal Government considering what elements they might be procuring in a similar way to the Pacific Patrol Boat Programme? Stephen Moore: Look, that continues. And it has continued for many years now. It’s a continual dialogue that the Australian Government has with Pacific partners about what their needs are of what they may need into the future. And then, decisions are taken on a regular and routine basis about what Australia may gift as part of that process. And that may be things from computers for Defence Departments which are relatively small, to Pacific Patrol Boats. So, there is a range in there. And it is a continual process and a continual dialogue with Pacific partners about what their needs are and how Australia might best support them.

Jim Taggart: I’m just going to ask my colleague, James Digges, a director of KPMG, to ask you a couple of questions because his expertise is particularly in this area. James Digges: Great. Thanks. So, Stephen, I was just wondering – on behalf of the Minister as well, you mentioned Space, and there’s been a lot of talk about Aerospace. Obviously, within NSW already, there’s a key couple of Aerospace hubs – Williamtown and down near Nowra with the Albatross. Has there been much discussion about the role that Western Sydney could play? Stephen Moore: I am not familiar with the detail; I’d have to take that on advice. It’s not something I’m close enough to, to be able to give you a good answer. James Digges: That’s OK. And we might be able to provide you with some information if that would be helpful. Stephen Moore: Yes, absolutely. Jim Taggart: OK. Thank you. Stephen, what do you see as the role of Western Sydney organisations in Australia’s Defence Industry sector? Stephen Moore: I’ll start by saying as I’m sure you’re aware, that the Government has made a $200B investment in Defence Capability over the decade up to 2025/26. And what that means is that there is a lot of money being invested into the Defence Industry sector which is going to generate a lot of work critical to achieving the Government’s capability goals. Western Sydney is home to a number of Defence bases. So, for example, you’ve got a RAAF Base at Richmond and Glenbrook. And so, there’s also a range of Defence Industry business that make an important contribution to Defence projects. This month there was also the Sea Power conference in Sydney. While he was there, the Minister had an opportunity to talk to Aussie Pumps which is in his electorate. They’re a manufacturer based in Castle Hill that have been supporting Defence Industry for more than 26 years now – they support both Navy and Army capabilities. So, we’re aware that there are small businesses in the region that are contributing to the Defence Industry and that will continue. I know that the Prime Minister and the Defence Industry Minister also recently visited Quickstep Technologies in Bankstown to open a new factory that’s going to be manufacturing parts globally for the F35 Joint Strike Fighter. So, we see that there’s industries and businesses

James Ellias.

in the region that are not just contributing to the Australian Defence Industry but are able to tap into global supply chains. So increasingly, I think you’re going to see that investment in that sector creating opportunities for more and more businesses. And then, you know, there’s a number of Western Sydney based organisations that are already developing new technologies that are coming through the Government’s Innovation Hub to tap into funding to get access to money that will help grow new technology that both Defence will use, but also hopefully then lead to export opportunities as well. I’ll give you a couple of examples of that. Thomas Global Systems I think – is there a rep from there at the meeting today? Will Hutchinson: Yes, there is. Stephen Moore: Based at Regents Park, it’s got a $3.2M contract with the Defence Innovation Hub to develop binoculars and high-resolution visual displays. And then, Western Sydney University also has a $5.5M Defence Innovation Hub contract to help with visual systems for NextGen situational awareness. Jim Taggart: Yes. Stephen Moore: We’d encourage businesses in the Western Sydney area that are interested in working with Defence, the best way to get in contact with the Government to work out how that can occur is through the Centre of Defence Industry Capability. It has facilitators around the country. It’s a Defence Initiative that sits within the Department of Industry. But what that Centre is able to do is help small businesses get “Defence ready”, and give them advice on how to prepare themselves to tender for Defence projects, to interact with Defence and to get their businesses’ practices in a form that Defence is used to dealing with. Jim Taggart: Thank you for that. Given that the Minister’s role extends to the Pacific, how can the Pacific be engaged? And what are we doing in terms of that region for

Advanced Manufacturing, particularly as it relates to Western Sydney, if anything? Stephen Moore: Look, that’s a good question. And it’s something that Minister Hawke is particularly interested in. Australia has a fundamental interest in the Pacific – and, you know, to have a region that’s secure strategically, and stable economically, and sovereign politically. And the Pacific Islands do face some obvious economic challenges. And that makes them smaller markets which can be challenging, I guess, for businesses to tap into. The Australian Government is working with Pacific Island nations to unlock some of those opportunities. There may be bespoke opportunities with some of the Pacific Islands and their Defence markets for Advanced Manufacturing, but it is a relatively small market. The size of them is on a different scale that will make it difficult to tap into. But the Government certainly encourages any Australian companies that have the right capabilities to consider opportunities in the Pacific. And a good way to do that is through the Australian Military Sales Catalogue that provides a means of showcasing Australian Defence Industry products – Foreign Governments look at that catalogue and consider what may be useful or strategic capabilities for them. And so, we’d encourage businesses in Western Sydney to consider advertising in that catalogue. Anything that does go in that catalogue needs to be export ready and have the right export permits. But it is a way of getting out there. Jim Taggart: Thank you, Stephen. James, from KPMG, would like to ask you a question, please? James Digges: So Steve, just with regards to that, with the Pacific Step-Up and the Free Indo-Pacific Initiative, for infrastructure, build and potential purchase of military equipment, is the customer likely to be the Australian Government, or will it be the Sovereign Governments of the Pacific Islands? Therese O’Dwyer: Good question. Stephen Moore: The Pacific Islands; their militaries are sovereign capability. James Digges: Of course. Stephen Moore: I mean the Australian Government does not tell countries what they should or shouldn’t purchase. James Digges: Of course. Stephen Moore: But the procurer may be a mix – certainly, say for example, the patrol boat; the new Patrol Boat that’s being rolled out. James Digges: Good example.

Tim Spsncer.

Stephen Moore: That’s an Australian build. That was a procurement by the Australian Government and then gifted to countries. But countries may make their own procurement decisions themselves and may

James Digges: Well, we can guide them to keep an eye out for what’s coming through the procurement process from those countries. Which arm of government would be likely to be doing the procurement if there is – Federal Government? Is it going to be CASG, or would it be more likely to be another arm of government? Stephen Moore: No. It’s run out of – and there was a bit of press about this just this week – Defence has stood up a new branch within the Department that sits within its policy area – it’s International Policy area; that is charged with managing those Defence relationships with Pacific Island countries. And that’s where those assessments about needs are made and advice provided to government about where those relationship might go. The actual procurements probably will then be through CASG. But it’s a number of areas within Defence, lead by a policy decision. James Digges: That’s been insightful. Thank you. Thanks for the heads-up. One of the other questions we provided to the Minister beforehand – and I hope that you’ve seen it, Stephen – was just with regards to Australian Industry Capability Plans. It’s been a topic of conversation here this morning. And the feedback from around the table: there’s a little bit of concern that there’s a real need to ensure that the OEMs that have already won work or are seeking to bid for work in the future, that there’s going to be enough attention to accountability in terms of fulfilling that Australian Industry participation. Stephen Moore: Yes. James Digges: Has that been a focus recently of conversation? Or, are there any insights you can provide us with regards to the attention that’s going to be given to that? Stephen Moore: I have heard that concern before. I understand where you’re coming from – because you have an interest in making sure that there is that accountability and that those commitments that the government has made to Australian content is upheld. I guess, there’s a few ways that that is done. Once approved, the procurements and contracting process - the tenders that are successful there - there’s a request that the Primes also take steps to ensure that that Australian content is included in their subcontracts. And that is checked. As you get down the supply chain, it gets more and more difficult for the Australian Government to ensure that. But, you know, certainly at the higher levels, there is an expectation that Australian content is included. And that then includes also a need for local supply. There are clauses in there to ask the successful tenders to look locally for suppliers where they can. Now, it’s difficult to mandate that, because you still want to ensure that you’re getting value for money, and that there isn’t always the ability to support that supply chain. But increasingly the Australian Government wants to see that Australian content in there. I think going forward, making sure that local Continued on page 31

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

DEFENCE OUTLOOK Continued from page 30

content is incorporated into schedules and plans for material acquisitions and focussed on maximising opportunities. I guess what you’re asking is: is that policed, is really the question. I will have to take that on advice. I’m not familiar enough with, the legal aspect or technical aspects of that. But I do know that it is increasingly important and increasingly being implemented by Defence as it monitors contracts. - I think I’ve probably not answered your question! James Digges: I think you have, to a certain degree. And it’s without notice, it’s a challenge. There are people around the table that have been part of the conversation already who have been involved in creation and then involvement in Australian Industry Capability Plans. So, we’re aware of that mechanism. I think the conversation this morning was one at that political level of ensuring that there is going to be stability in that process such that Australian organisations which are making capital investment now can have greater certainty that that capital investment will lead to the work that was intended from the investment plan. Stephen Moore: Absolutely. The investment plans – the purpose of that was to try and give strong signals to industry so that there was that stability there. I was involved a bit in this some time ago. And I know the start of that process and what Defence was hearing at the time was that a signal to industry needed so that that investment could occur. Now, the hope I think is that those investment plans are providing that signal. So there is an interest for Defence and for the government to stick by them once they’ve been established. So, as I said, I’m a little bit removed from that process now but certainly, using those investment plans as a signal to industry so that decisions could be made was the primary purpose for them. Jim Taggart: Steve, it’s 25 past 11. I’ve got one final question, if you’d be so kind. Steve Moore: Sure.

Will Hutchinson.

Therese O’Dwyer.

the established SMEs in the Defence supply chain, there are very grave concerns about both SEA 1000, which is the future submarine, and SEA 5000, the Frigate program, just whether the intention is for the first submarines and first frigates have virtually no involvement by the local supply chain – the Primes. My understanding the intent is with their own overseas supply chain for – but for basically all the system on those vessels. Now, my concern and the industry concern is: yeah, that’s all very well for them to say: oh yes, after hull No: 3, we will engage with the Australian supply chain. But from history, that never happens. And so, I think my reading of the situation is that CASG has acquiesced to this request by the Primes, Mabel Group and BAE Systems respectively, and certainly – but many of the companies that I speak to have very grave concerns about this situation.

5000 production to comment beyond that. I’ll make sure it is passed on.

Stephen Moore: I do understand those concerns, but don’t feel particularly qualified to speak to the detail I might leave discussions on this topic there and take your concerns on notice and pass them on to the Minister.

Jim Taggart: It’s a question without notice. But we’re very fortunate to have at the Round Table Will Hutchinson who is the Chairman of Thomas Global Systems. And just we’d like to make some comments and ask a question all in that. Thanks.

Will Hutchinson: But let me just say that my understanding is the Prime Minister is aware of the concern amongst the Australian supply chain base over the lack of involvement in the early stages of these two projects.

Will Hutchinson: Stephen. It’s Will Hutchinson here. I’m involved in this space and I’ve just come back from two days in Canberra where I had a series of meetings. And amongst the – with the SME – with

Stephen Moore: I do know that there was always the commitment to Australian businesses as much as possible and the Australian supply chain. And as I said, I’m not familiar enough with the SEA 1000 and SEA

Will Hutchinson: Thank you. Jim Taggart: Steve, we’ve run out of time. Can I, on behalf of Access, KPMG and all the colleagues here today, through you to the Minister, thank you for your time and your comments. I hope this has helped us and helped you in terms of developing our relationships further. And I know that Minister Hawke has an open-door policy. And I know that each of us here can facilitate that, through yourself and so on. So, we’d like that reassurance. And thank you very much for this morning. Stephen Moore: And again, I’m just passing my apologies on behalf of Minister Hawke again – you can probably hear the division bells ringing. He would have been quite happy to speak with you – and hopefully, if an opportunity arises again in the future, certainly let us know. Jim Taggart: Well, James and I mentioned that there could be a follow-up later. So, we look forward to that in the New Year – so, appreciate that –in some form. Thank you again, Stephen. Stephen Moore: Thank you. Jim Taggart: Thank you. And I don’t want to rush you. I could sit here till 12 o’clock. But I often find – and I’ve said this to David – a lot gets done when it’s over. People want to gravitate to each other and talk and swap cards because that’s one of the

important things to follow up. I hope it’s been meaningful for you this morning. We’ve got a lot of heavyweights here. So, I’d like to also thank KPMG for hosting this, this morning – James and David. I find these fantastic because you walk away better informed about something than what we did only 120 minutes ago. And I know Therese and I will talk at a different level. To finish today, David, would you be so kind as to share your thoughts and vote of thanks? David Pring: Thanks everyone. On behalf of KPMG, thanks everyone for making time and coming together for that conversation. I think we uncovered a number of issues through there from the Primes through to the SMEs around building that supply chain, the issues with government support and need to ensure that that message is getting right through the supply chain, through to the government issues and – you know – the transformation of Western Sydney with the Aerotropolis etc. It almost seems some time ago that we were talking about the employment issues that we talked about at the beginning and the great need to close the jobs deficit, but also the skill shortage that everyone is talking about – which seem to be contradictory terms. But it’s getting those right skills for the jobs of the future. So, I’ll just thank everyone for attending and for input, and look forward to continuing the dialogue as the growth opportunity continues. Jim Taggart: Thank you very much. Enjoy your day. And best wishes for your business. All: Thank you very much.

Ministerial advisor, Stephen Moore, addresses the Round Table. WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

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Technology Success

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Passwords and how to protect them  DARRYL MCALLISTER EAK or stolen passwords account for 81% of hacking-related data breaches. While companies typically understand the problem with weak passwords, often they leave the issue unaddressed or aren’t sure how to handle it. The dilemma is the same in offices around the world: When you ask employees to create long, unique, difficult passwords to increase security, often they can’t remember them all and have to continually go through password resets, dragging down productivity. So, all too often the only thing protecting a company from having their network breached and sensitive data stolen is the weakest employee password, which isn’t very strong. Why is credential theft so popular? Because a company can have the best managed IT security, including firewalls and antiphishing software, but if a hacker has guessed or phished a password, they can slide right by other defences and gain access to your network. One of the best ways to secure logins and solve the weak password problem is to use multi-factor authentication (MFA). MFA creates another layer of security for your application access that can’t be easily breached even if the hacker has the username and password combination.

How Does Multi-Factor Authentication Work? Most of us use MFA regularly without being aware of it. When you use your debit card to pay for a purchase or at an ATM, you’re typically required to present two forms of authentication, your bank debit card and your PIN that you enter when it’s swiped. The same authentication structure is true

when MFA is enabled for password security, you’re required to present multiple forms of “proof” that you are the person to whom access has been given. The factors of authentication that MFA uses are: • Something you know: Your username/password combination. • Something you have: A mobile device, token generator, etc. • Something you are: Fingerprint, facial recognition, etc. Without multi-factor authentication enabled, an application like Office 365 or your bank account login, will just require a single factor, typically your username and password combination, to gain access. So, if that’s stolen or hacked, a thief can easily get into your accounts. When you enable MFA, another factor is now required to get into an application. The most common is a code that is sent via SMS to your smartphone, which has been previously set up in the system. The steps go as follows: • Use your name/password as your first step to login. • Click to have a code sent to complete login. • The code immediately arrives via text (it’s typically only good for 5-10 minutes) • You enter that code and complete the login and gain access. A Google study showed that MFA prevented 100% of automated bot attacks that use

stolen passwords and 96% of phishing attacks. With the proven track record of MFA and its ability to prevent password-related breaches, there’s really no reason organisations should not be using it for their logins or, at the very least, for their administrative user logins.

Using MFA with Azure and Microsoft 365 Microsoft Azure can simplify the process of using multi-factor authentication because it allows you to safeguard access to applications and data across your organization while presenting a simple interface for your users. It also gives you the flexibility to choose from several forms of authentication and the ability to add more factors for certain logins. For example, administrators that have more access to network systems or positions such as accounting whose login credentials unlock bank account details. Authentication methods include: Password, Security questions, Email address, Authenticator apps, Hardware token, SMS, Voice call, App passwords. MFA is available as a part of Microsoft 365 Business and includes the use of conditional access. Best Practices for Setting Up MFA Companies that thoughtfully implement MFA have a much better chance at a smooth rollout without employees having login issues or technical glitches going unchecked. Here are some tips for implementing MFA at your organisation.

Create a Framework of How You’ll Deploy MFA Before you have an admin just turn on multi-factor authentication for your team, you want to have a thorough framework in place that’s well thought out and answers questions such as: How will MFA factors change as user privileges go higher? Who will handle staff questions and issues with MFA? What type of employee training will you conduct? Do you have an IT partner in place (like NetCare) that can help you set MFA up properly?

Consider the Employee Experience Whenever you roll out something new that’s going to change the way your staff works, you want to consider their experience and invite feedback. Such as giving employees a method to report the pros and cons they’ve experienced once MFA is enabled and offer suggestions.

Regularly Evaluate Your MFA Program Our use of technology naturally evolves, and so should your protocols. You want to regularly evaluate the success of MFA, requesting feedback from your team and looking for any potential improvements. Passwords have been found to be the biggest weak link in a company’s data security defenses, but it’s one that’s easily plugged with multi-factor authentication policies. NetCare can help you plan out your MFA protocol, onboard your staff, and implement and monitor your program. Darryl McAllister is CEO at Netcare. Contact (02) 9114 9920 Visit: www.netcare.net.au

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Welcome to KPMG Family Business feature articles. If you would like to discuss these articles or how KPMG can help with your business please feel free to contact me on 9455 9996 or davidpring@kpmg.com.au

SMEs: business’s forgotten people

 JONATHAN ATTIA  JOHN MUNNELLY N the business community, we hear about start-ups disrupting entire industries and large corporates making high-stakes plays. Where are the stories about the forgotten people of the business world; the small and medium enterprises (SMEs)? There is really nothing small or medium about SMEs. They employ seven million Australians, contribute over 50 per cent to Australia’s GDP and are integral to both global supply chains and the local community. Yet they feel they do not have the same opportunities as other businesses when it comes to the ability to access financing and business management technology. These are major pain points for the sector. Why? SMEs have often been in business for many years, and are profitable. Some are very profitable. They are growing but are not part of the growth-orientated tech ecosystem that benefits from venture capital. They exist all over the economy, in retail,

manufacturing, distribution, professional services and not-for-profit sectors. They aren’t seen as ‘sexy’ – even though they are crucial to the creation of ‘sexy’ products and services. So how do we go about removing these pain points? Take accessing finance. SMEs don’t usually have deep pockets. SMEs owners tell me they feel the only way they can obtain investment capital is by offering up their family home as security, which makes most resilient person hesitant. In today’s low-interest rate environment, debt is cheap but can be hard to access. If we are to turn around the slowdown in the domestic economy we have to make it easier for SMEs to access lines of credit for both investment and cash flow management purposes. A recent study suggests that 53 percent of SMEs’ invoices are paid late, depriving the sector of AUD7 billion in capital each year. Although fintechs and peer to peer lending firms for business loans have cropped up to service this demand in the market, their loan rates are often higher than the market average. From a regulatory perspective, APRA could

assist SMEs by continuing to encourage the entrance of fintechs and neobanks into the banking ecosystem under their new ADI licencing framework whilst providing clear frameworks for unsecured loan origination technology with an algorithmic approval process. Enhanced competition in the loan market with a streamlined approval process would go a long way in resolving the financial issues of SMEs. SMEs also express frustration at their inability to streamline their back-office functions. They lack the size and money to outsource these operations, but often find that they’ve reached the limit of software designed to assist SMEs in this area. Common complaints include an inability to integrate different functions of the business (such as inventory management and invoicing), a tendency for the software to be wedded to legacy systems and difficulties dealing with a growth in locations, inventory size or transaction quantity. The end result of these needless complexities is a loss of time that would otherwise be spent by owners and employees to run and grow the business.

A key step to solving these problems is migrating to a cloud-based system. The cloud allows owners and employees to access and update data in real time from anywhere in the world. To not use it is to place yourself at a competitive disadvantage. Many cloud-based systems offer the seamless integration and reconciliation of data – like between your bank and accounting software – providing huge time and cost savings. This data can also be utilised to create relevant benchmarks on how their business is performing against others in the industry. Traditionally SMEs have had little ability to create benchmarks, let alone benefit from the insights they provide. The future of our economy will be underpinned by our ability to liberate SMEs from these concerns. All large stakeholders in the economy – banks, governments, start-ups and large corporates – should work to help the great and glorious middle. It will be to the benefit of us all. First published by Jonathan Attia, Managing Director Wiise and John Munnelly, Partner, KPMG on KPMG Newsroom.

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Embracing TECHNOLOGY to future-proof family business Don’t be scared, be prepared N the late 1990s, few people could have guessed what the business landscape would look like in 2019. Smartphones, automation and artificial intelligence, cashless payments and coworking spaces are just the tip of the iceberg – the world of work and the world in general have changed a lot in two decades, massively impacting business mindsets and customer purchasing behaviours along the way. But while no one can say for certain what disruptive developments are in store for the next 20 years, maximising the benefits of technology can help family businesses meet and overcome future challenges, while sharpening their competitive edge here and now.

Get closer to your customers According to respondents to the 2018 KPMG Enterprise and Family Business Australia survey, changing consumer preferences and purchasing behaviours were one of the top threats to future growth. One major benefit of technology is that, through business intelligence tools and datadriven insights, enterprises are now better equipped to identify shifting trends in customer patterns, behaviours, lifestyle choices and so on, resulting in better-informed decisionmaking around production, forecasting and planning.

It may even inspire what David Christie, Joint CEO of Bakers Delight Holdings, calls a ‘product renovation’ – such as when the iconic bakery chain added extra fibre to their white loaf in response to a more health-conscious movement among consumers. Within a few short years, the high-fibre white was their new best-seller. “I don’t think anyone can honestly say they’ve got the full picture of what’s ahead,” Christie says, “but if you’ve got the right skillset, capability and drive to always be anticipat-

ing what your customers want, and if you’re prepared to try new things – and potentially to fail if they don’t work – then I think that puts you in a pretty good position.”

Start now There are a couple of reasons that Brad Miller, Partner and National Leader – Advisory at KPMG Enterprise, says there’s no time like the present when it comes to the adoption of new technologies. The first is that technological solutions for

core systems such as finance, HR, and even customer management are becoming more affordable, giving family businesses better data, better insights, and, as a result, better competitive advantage. “If you are taking advantage of this, and we see a lot of the smaller companies doing it, you get better at making decisions, because you run your business in more of a real-time fashion,” Miller says. “You can respond to issues and opportunities faster, and you get a better handle on things such as basic profitability, what your customers are doing, what your competition is doing, and what your employees are doing – i.e. how productive are you really as a business?” The other argument for embracing new technologies sooner rather than later, is that it will make it easier to adapt to disruptions down the track. “In simplistic terms, you need to invest now,” Miller says, “because if it’s not the absolute right piece of technology for a particular issue or it evolves, the experience will put you in good stead.” Sign up to the KPMG Enterprise Business of Family Master Class series at kpmg. com/au/businessoffamily to build the skills to balance the needs of your family and your business. Article first published on SmartCompany – https:// www.smartcompany.com.au/partner-content/articles/family-business-embrace-technology-to-futureprrof-your-business/

In the restaurant business; adapt to survive and thrive  MORGAN KELLY HEN the Hotel Steyne in Manly sold for the eye-watering sum of $60M earlier this year, heads turned in the hospitality industry. It wasn’t just because of the high sticker price – venue sale prices have increased across the board over the last decade. What is unusual is that a record sale occurred at a time when most hospitality venues are doing it tough. Within a few months of the sale of the Steyne, renowned Sydney eateries Acme, Paper Bird and Billy Kwong closed their doors citing rising fixed costs and middling sales due to a slowing economy and the increased popularity of food delivery services. The confluence of rising asset prices, declining sales and flattening yields reminds many, myself included, of the state of the industry prior to 2006-2007. Increasing asset prices necessitated higher debt levels and resulted in highly leveraged operators going bust when the economy started to slow in 2007. Our current economic outlook is not exactly rosy – operators have to be prepared to adapt to survive and thrive. This is what I would recommend:

Do not over-leverage yourself. The price of debt is at historic lows and is looking to stay that way for a while. Borrowing to fund capital investments or to expand can seem tempting but I would advise against it. Banks are cognisant of increasing asset prices and flattening yields in the sector and are tightening lending requirements: a few years ago they were willing to lend at a loan to value ratio of 80 percent. Now, the ratio is under 55 percent. Additionally, nothing eats away at margins like interest payments. Consider equity injections. With interest rates so low, there is a cloud of super fund and private investment money floating around,

looking for a place to land and make returns. With asset prices so high you could get a decent injection of funds in exchange for equity. And while it may sting to have to share profits, the repayment requirements are certainly less onerous than a bank loan – and if the money is invested carefully in your venue, there will be profit to go around.

Become aware of your customers and their changing preferences. Too often I am called in to assist venues that have lost touch with their customer base and subsequently fail. Demographic change across the country means that a venue that once did well serving up parmas and pints is feeling a pinch. Broadly speaking, Australians are drinking less and eating healthier. Beer consumption has halved per person since the 1970s and alcohol consumption nationally is at its lowest in 50 years – but craft beers, non-alcoholic beers and high-end spirits are growing in popularity. Australians are also more interested in where their food and drink are coming from. Making the effort to cultivate high-quality ingredients that are environmentally friendly or more ethical is an activity that will be rewarded by customers. Provenance of food items are now central to consumer concerns.

Protect margins through efficiencies, not by compromising on quality. An added benefit of sourcing better quality ingredients – and charging accordingly – is that you will be able to resist participating on the basis of price to differentiate yourself. In an industry with growing fixed costs and a requirement to please the customer, trying to aggressively cut prices by skimping on the quality of your ingredients is a race to the bottom. This is not to say that you shouldn’t look for savings. A friend of mine works in aviation logistics and has always expressed his awe

The Steyne Hotel.

at the logistic complexity of a busy kitchen: Ensuring that different products with different inputs arrive at their destination in a timely manner is complicated – but it doesn’t mean it can’t be rationalised. There are many business management systems geared towards hospitality venues that can help drive internal efficiencies, bringing the cost of doing business right down. Also realise that prices in hospitality are sticky: People generally won’t spend more than $45 on a high-end steak, for instance. The current high cost of beef may tempt you to increase prices to maintain your margins – but you may be better off increasing the price of the wedges.

Personnel and Human Resources

the hospitality industry: the labour shortage. Whether you are a chef or a bartender, the chances are you learnt how to do your job on the job. Hospitality operators are constantly investing in up skilling their people who often go on to change careers – or move back overseas, as many workers are on temporary visas. The simple solutions are to treat your employees well and to have a mind towards succession planning. The success of a venue is 90 per cent dependent on the quality of management – having good personnel who enjoy their work is key, as is having a plan to replace them when they have to move on. So as we rush towards the end of year celebrations as 2019 comes to a close make sure you are prepared for a profitable 2020.

Earlier this year I happened to sit next to a celebrity chef and hospitality group operator on a flight to Melbourne. We quickly got to talking about one of the biggest problems in

Article first published by Morgan Kelly, Partner, Restructuring Services, KPMG Australia on KPMG Newsroom.

WESTERN SYDNEY BUSINESS ACCESS DECEMBER 2019

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Cumberland Business

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New board appointed at CBC  ANGELA HAYNES here was a rumble of excitement at our Annual General Meeting on October 29. Not only did we celebrate the achievements of FY19, our members also appointed our new board of directors who bring genuine diversity of skills, experience, culture and gender. And, by way of introduction I am proud to have been elected your new President. First things first, we regrettably farewelled some notable talent this year in Bihn Rey who lead our marketing team and Andre Meyer our former treasurer. Both have been relentless in their hard work and support of the Chamber. Bihn is relocating to Melbourne and we invited Andre to chair our AGM as his parting gift. The great news is we now have eleven uniquely talented people on our board, nine official and two honorary, and while others may talk about the value of Diversity and Inclusion, we are walking the talk. The Chamber has a bright and exciting

Angela Haynes at Coffee with a Cop. The new board for Cumberland Business Chamber.

future in 2020, we have a strong board who look forward to taking the Chamber onwards and upwards. The board is as follows: • Angela Haynes, KPMG Greater Western Sydney (President). • Peter Groeneveld, Computer Network Integration (Vice President) • Libby Roberts, Workplace Rehabilitation Management (Treasurer) • Scott Baker, ANZ Bank (Secretary) • Dr Theresa Teo, AlphaIMM Agency &

Adjunct Lecturer, Macq Uni & UNSW • Megan Rogers, Signarama Blacktown & Smithfield • Paul Desani, Industrial Vacuums & Engineering • Rebecca Hegarty, Coleman Greig Lawyers • Lloyd Gilbert, KPMG Greater Western Sydney Honorary board members are Peter Simonis (also life member), Precision Calibration Services and Vince Blanco, Manufacturing at TAFE.

Advocating for industry in Western Sydney  ANGELA HAYNES HAT does the leading Industrial and Manufacturing Chamber of Western Sydney, stand for. Let’s talk about the Industrial Skills Shortage in Western

Sydney. Businesses are looking to keep pace with emerging technologies like artificial intelligence, internet of things (IoT), cyber security and data analytics however the skills mix is misaligned and much of the workforce will

need to reskill to meet this demand. CBC supports better connectivity between employers and educators (secondary & tertiary) and industry partnerships for both traditional trades and digital/technology jobs to up-skill workers so businesses have access to a pipeline of qualified workers they need to grow, innovate and prosper. CBC also supports tech enablement initiatives and investment so manufacturers can evolve and adapt. There is also an unparalleled infrastructure boom in Western Sydney enticing workers away from industrial employers and into the

Cumberland Business Chamber

Invitation

2019 Christmas

Bowling Monday, 9 December 2019 Kicks Tenpin Bowling Parramatta Leagues Club Level 3, 1 Eels Place, Parramatta NSW 2150 5:30pm

RSVP 26 November 2019 Tickets

construction sector. This is going to last a number of years and is putting upward pressure on wages. CBC supports initiatives that connect unemployed persons, many of whom are born overseas, that are willing and able to work to access training and, skilled and unskilled employment opportunities in the sector. Thanks for your continued support of the Chamber and I look forward to meeting you in person at one of our events or you can reach out to me by email at president@cbchamber. com.au.

Coffee with a Cop UMBERLAND Business Chamber’s new president Angela Haynes engaging with the community at Coffee with a Cop at Fairfield City Museum & Gallery on November 13. One of her memorable conversations was with Romal Baluchzada of Settlement Services International – SSI about their Ignite Small Business Start-ups initiative that facilitates business creation for people from refugee backgrounds who are keen to establish a small business or expand an existing one. Worth a look see! https://www.ssi.org.au/ services/ignite

Join us for a relaxed evening celebrating Christmas 2019 with tenpin bowling, finger food and drinks. Mon 9 Dec 2019 – 5:30pm It’s that time of year again so let’s: • Celebrate the holiday season with friends and colleagues. • Enjoy fun and laughter (with a touch of competitive spirit!). • Network and strengthen business connections before the holiday break.

Kicks Tenpin Bowling. Parramatta Leagues Club. Level 3, 1 Eels Place, Parramatta NSW 2150. Event QR Code: www.cbchamber.com.au/events