A Deeper Look at Business & Government | Vol.3 2014 | AustralianBusinessExecutive.com.au
AUSTRALAND
Port Coogee and Cockburn Living
GK STRATA MANAGEMENT
Discuss industry issues
THE PLEASURE OF REPEAL Association of Mining and Exploration Companies CEO Simon Bennison pens an exclusive on resurrecting mining investment and why the disastrous carbon tax had to go
Plus: Canadian Australian Chamber of Commerce
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PUBLISHER’S NOTE Welcome to another edition of The Australian Business Executive. What can I say? It’s our final edition for 2014, and it’s been a very big year for The Australian Business Executive. From very humble beginnings in London, England, the 2014 year sees us firmly entrenched in Australian affairs and working directly alongside business to discuss their issues. With only three editions in 2014, we’ve managed a lot of things, including producing one of the most significant reports on uranium mining. We anticipate emerging economies will have specific need for the resource, and it will continue Australia’s fortunes in the coming years. In our follow-up edition, we had our cover story with WA Premier Colin Barnett – one of the most powerful men in the country detailing his vision for the state. And now in our 3rd edition, we’re proud to say we’re covering two industry heavyweights. In these pages, you’ll find Australand discussing their most significant projects in the WA residential sector, and AMEC CEO Simon Bennison penning an exclusive for us in our cover story. We also speak with the Canadian Australian Chamber of Commerce about the incredible similarities of our two countries. Finally, in our community profile we catch-up with Football Queensland on Australia’s efforts at the World Cup, providing a development to success for youth, and corporate opportunities for organisations wanting to align their brand with this ever-growing sport. When they say Australia is “the lucky country”, it’s hard to disagree. Until 2015, ---
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J. Landry--------
The Australian Business Executive is published by the Romulus Rising Group reaching a range of professionals including top executives and senior public servants across Australia. All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in the Australian Business Executive are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration. 3
CONTENTS REGULARS
Australand
Publisher’s Note
3
News in Review
6
State by State
8
Cities and Regions
12
14
PROPERTY & DEVELOPMENT Australand WA:
Award-Winning, Exceptional Living
We speak exclusively with Australand GM of Residential WA Tony Perrin about their continued success and achievements, including the Port Coogee and Cockburn Living projects
14
GK Strata Management
MD Melissa Truscott sits down with us accompanied by Greg Haywood, President of the NSW Division of Strata Community Australia (SCA NSW) to talk about growth in the industry, commissions and delivering value
City Beach Builders The Perth builders who punch above their weight discuss quality, growth, and having a vision
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28
38
GK Strata Management
28
CONTENTS
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Mining Issues Report COVER STORY Association of Mining and Exploration Companies (AMEC) 46
CEO Simon Bennison pens an exclusive on restoring confidence in the mining sector after the repeal of the mining tax Minerals Council of Australia (MCA)
Sid Marris, MCA Director of Industry Policy on what the repeal of the carbon tax means to investor confidence
A.M.S. Tugs & Barges
Celebrating a decade of business with an expanding fleet
Canadian Australian Chamber of Commerce
A time to rediscover the similarities between our two nations
52
46
COVER STORY Simon Bennison AMEC
56
Canadian Australian Chamber of Commerce
62
62
Football Queensland
The growth of soccer and preparations for the 2015 Asian Cup
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5
NEWS IN REVIEW Commonwealth Bank Commits $10 Million to Centenary of ANZAC Commonwealth Bank has contributed $2 million to the ANZAC Centenary Public Fund which will support the commemoration of the centenary of ANZAC across Australia from 2014 to 2018. Commonwealth Bank CEO Ian Narev says the commitment is part of a $10 million total contribution Commonwealth Bank will make
over five years towards recognising the ANZAC Centenary. “This donation marks our commitment to commemorating past service as well as those Australians who continue to serve our nation,” Mr Narev said. “The Commonwealth Bank Staff Community Fund, is Australia’s longest continuous work place giving program and now the largest workplace giving program, was founded in 1917 to send care packages to employees serving on the frontline. Today, the Fund continues to focus on supporting the health and wellbeing of young Australians.” Commonwealth Bank also financed and managed the purchase of 15 merchant vessels urgently required to maintain overseas trade and supplies to our troops in Europe during World War I, floated war loans which raised more than £257 million in public subscriptions, and worked with other Australian banks to finance primary producers who had been organised into war-time production pools.
Caltex Australia Invests in National Lubricants Network Caltex Australia is investing $5 million towards expansion of its national bulk lubricants storage and distribution network, including the construction of a new facility at Welshpool in Western Australia. The lubricants, grease and coolants supplier - well-recognised for major brands such as Havoline and Delo - is building the distribution centre and bulk storage facility in the Perth industrial suburb to ensure a dedicated supply chain for customers in Western Australia.
Commonwealth Bank is contributing $2 million to the ANZAC Centenary Public Fund 6
Caltex - Australia’s only locally-listed and managed fuel and lubricants supplier - also recently carried out about $2 million of upgrades to its Brisbane facility, which remains the largest grease manufacturing and lubricants blending facility in Australia.
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The supplier’s Newport bulk storage facility in Melbourne is also receiving a $1.5 million upgrade to make finish product available in bulk rather than made-to-order, ensuring the company can meet demand across Victoria, South Australia and Tasmania. Caltex Australia’s National Manager Business to Business Sales, Phil Amos, said the company’s expansion activity was another clear signal of its continued commitment to remaining Australia’s supplier of choice for lubricants, grease and coolants. “The Welshpool facility will mainly be supplied with products from our Lytton manufacturing plant and supplemented by imports from Thailand and Singapore,” Mr Amos said. “The site will be capable of loading the full range of trucks, from small rigids to B-Doubles, ensuring efficient logistics arrangements for our customers, including the Pilbara and Goldfields based mining industries.
Margaret and David Roll End Credits on At the Movies The ABC today announced that, after 28 years, and one of the longest and most enduring partnerships on Australian television, Margaret Pomeranz and David Stratton will record the final episode of At the Movies on December 9. Margaret and David, whose on-screen partnership is legendary, came to the ABC in 2004 from SBS, where they had hosted The Movie Show for the previous 18 years. Since their accidental pairing more than a quarter of a century ago, Margaret and David have grown to become Australia’s most admired and trusted movie reviewers, as well as enjoying an envious reputation abroad. There are few actors or filmmakers who would refuse an interview with the intrepid pair, such is the regard in which they’re held. “After 28 years reviewing films on television with Margaret, ten of them at the ABC, I feel it’s time to go. We’ve had a wonderful time, thanks to very supportive and encouraging audiences, throughout that period. And we’ve worked with wonderful teams, both at SBS and at the ABC,
At The Movies - Margaret Pomeranz and David Stratton are calling it a day people who discovered movies alongside us, helped and assisted us, and in the process became valued friends. We couldn’t have done it without them. “Most of all, working with Margaret, whose enthusiasm, commitment and passion has been amazing (and only occasionally irritating) has been a joy for over a quarter of a century. But, since I turned 75 last week, I look forward to less pressure and more opportunities to enjoy the movies I love, in the years ahead.” says David. Margaret adds, “As David says, it’s time to go from the small screen after a great innings, thanks to all our viewers and the fabulous teams we’ve worked with over the years. “We’ve seen Australian films continue to mature over nearly three decades on air and I look forward to a continued involvement in this wonderful industry of ours which explores and reflects our culture and our peccadilloes. It’s been such a privilege to have been on the sidelines, witnessing the talent that this country produces in all areas of film production. 7
STATE BY STATE NSW Sydney’s New Train Unveiled as $3.7 Billion Contract Signed NSW Premier Mike Baird and Minister for Transport Gladys Berejiklian today announced Sydney’s brand new rapid transit trains will run every four minutes during the peak on the North West Rail Link as part of a $3.7 billion contract just signed by the NSW Government.
NSW Premier Mike Baird
hour in the peak – with significant room to grow as the North West’s population increases over coming decades.” The North West Rail Link will be Australia’s first fully-automated rapid transit rail network, delivering eight new railway stations, 4,000 commuter car parking spaces and five existing railway stations upgraded to rapid transit status. Ms Berejiklian said the contract just signed means Sydney’s new trains will be built by international train supplier Alstom who make rapid transit trains operating around the world in cities like Singapore, Hong Kong, Milan and Amsterdam.
ACT Canberra Ready for Major Events The ACT is now better prepared to host major events after the passing of a Bill today that establishes new legislation for security management and commercial protections.
Mr Baird said the North West Rail Link will take customer service and safety to a whole new level – bringing a world-class rapid transit rail service to Australia for the first time. “Services on the North West Rail Link will start in the first half of 2019 with 15 trains an hour during the peak and 98 per cent on-time running – a much higher level of customer service than we first expected and an outstanding outcome for customers,” Mr Baird said. “The NSW Government promised 12 trains an hour but we’ll be able to start with 15 trains an 8
Attorney-General, Simon Corbell, said the Major Events Bill would help promote the ACT nationally and internationally as a welcoming place to visit, live, study and invest. “Provisions in the Bill allow the intellectual property and other commercial rights of sponsors to be protected, ensuring the ACT is competitive when bidding to host major events,” Mr Corbell said. The new legislation will ensure that the ACT is ready to host games and meet government guarantees as part of the Asian Football Confederation Asian Cup and the International Cricket Council World Cup in 2015. “In passing this Bill the ACT will be the first jurisdiction to fully meet all the government
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guarantees within a human rights framework,” Mr Corbell said.
QLD Have Your Say on the Sunshine Coast Airport Expansion The next step in the potential expansion of the Sunshine Coast Airport which will create more than 1500 long-term jobs and provide a major economic boost for the region is underway, with the independent Coordinator-General releasing an environmental impact statement for public comment. Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said the proposed $347 million expansion would enable the airport to more than double its capacity to two million passengers a year. “Sunshine Coast Regional Council proposes to construct a new runway and associated infrastructure at the Marcoola airport site,” Mr Seeney said. “If approved, the new runway would enable larger jets to use the airport and will provide greater access to the Sunshine Coast for international tourists. “Economic forecasts suggest passenger numbers at the airport could climb from the current 900,000 a year to two million a year by 2030. “Our government promised to grow the economy and deliver better planning. Assisting the Sunshine Coast Council to expand its airport into a strategic infrastructure hub delivers on this promise. “I encourage community members to have their say on the proposed expansion.” Sunshine Coast Regional Council is proposing to build a new north-west/south-east 2450 metres long runway – 652 metres longer than the current airstrip – to allow for a wider range of aircraft.
The Sunshine Coast Airport is considering expansion to enable it to more than double its capacity Mr Seeney said the Queensland Government had helped progress the proposal by agreeing to transfer, at no cost, three parcels of stateowned land adjacent to the airport needed by council for the project.
NT NT Making Business Simpler The Territory Government is launching a new one stop website for the lodgement of invoices, making it quicker and easier for businesses to get their bills paid. “My Government has heard the message loud 9
State by State
and clear that the business community wants this invoice payment process streamlined and we have set up a new website to make that happen,” Chief Minister Adam Giles said at the official launch of October Business Month. “We know that businesses often find the process of submitting hand written paper invoices inconvenient and the payment system slow. “InvoiceNTG will now allow bills to be lodged and tracked securely online, meaning invoices can be tracked electronically and will get paid faster. “It will also be possible to email remittance advice and receive SMS and email alerts when payments are made. “There will also be a mobile app available so that invoices can be tracked on smart phones and tablets.
participating in commemoration activities, but by sharing stories and photos of their family’s war history through the new website and Facebook page. The Centenary of ANZAC, from 2014 – 2018, commemorates 100 years of service and sacrifice by Australian service-men and women in all wars, conflicts and peacekeeping operations since World War One. The Department of Premier and Cabinet will coordinate and promote all commemoration activities, including those run by the Tasmanian Government, local government, the Australian Government and community sector organisations across Tasmania. For information on the Centenary visit www. centenaryofanzac.tas.gov.au. People can also contact the Tasmanian Centenary of ANZAC at centenaryofanzac@dpac.tas.gov.au or on (03) 6232 7090.
“Last year, the Government moved to an onlineonly tender system to simplify the process of securing government work. I am thrilled we are now able to complement that with an online invoice system too.
SA
“This is exactly the kind of innovation and red tape reduction we need to overcome investment barriers that have been holding the Territory back for more than a decade.
South Australian women will have greater access to breast cancer screening services with the opening of the David Jones Rose Clinic in Adelaide’s CBD. Operated by BreastScreen SA, the Rose Clinic will provide state-of-the-art breast screening services from a convenient location in Rundle Mall.
TAS Century of ANZAC Website Launched The Tasmanian Centenary of ANZAC website www.centenaryofanzac.tas.gov.au and the ‘Tasmania Centenary of ANZAC Facebook page have now been launched. The website is a hub of Centenary of ANZAC commemoration activities and information for Tasmanians. The Tasmanian community is encouraged to take part in the Centenary, by not only 10
Breastscreen SA Launches in David Jones
Parliamentary Secretary to the Premier, Leesa Vlahos, attended the launch and said the David Jones Rose Clinic would be a welcome addition to BreastScreen SA’s services in South Australia. “Regular mammograms are the best way to detect breast cancer early and get vital treatment as soon as possible,” Ms Vlahos said. “Breast screening services have helped to significantly reduce breast cancer mortality in Australia and improve the health outcomes for those women diagnosed. “I know that for some women it can be difficult
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to find the time to make an appointment, which is why the David Jones Rose Clinic, in the heart of Adelaide’s CBD, is such a wonderful idea.
The impact of the significant workplace reforms announced as part of the 2013-14 Fiscal Action Plan are also evident in the financial results.
All women aged over 40 are eligible for free breast cancer screening but it is particularly recommended for women aged 50 to 74.
General government sector salaries expenditure increased by just 5.2 per cent in 2013-14, the lowest rate of annual growth since 2000-01.
Phone 13 20 50 to book a free screening mammogram appointment.
Dr Nahan said with spending on salaries representing 39 per cent of general government operating expenses in 2013-14, constraining growth in salaries expenditure was critical to ensuring the sustainability of the State’s finances.
WA Government Land Sales to Raise Revenue Treasurer Mike Nahan said the final outcome for 2013-14 demonstrated the significant progress the State Government had made in addressing the challenges facing the State’s finances. The general government sector recorded an operating surplus of $719million in 2013-14, $536million higher than the Budget estimate of $183million. “This is a sound result for the general government sector and represents 2.6 per cent of operating revenue in 2013-14,” Dr Nahan said. General government revenue increased by 8.7 per cent in 2013-14, well above the 6.9 per cent increase in expenditure over the same period, and compares with revenue growth of 2 per cent recorded in 2012-13. “This revenue outcome is consistent with the Government’s financial targets and validates the new revenue-raising measures introduced by the Government in the 2013-14 Fiscal Action Plan and in previous Budgets,” the Treasurer said. Additional revenue from these measures has helped offset the relatively modest growth in payroll tax in 2013-14, and an overall decline in Commonwealth revenue contributions to the State, including a $428million reduction in GST revenue.
The 2013 14 ARSF is available from the Department of Treasury website at http://www. treasury.wa.gov.au
VIC Victorian Food and Fibre Exports Hit $11.4 Billion Victoria’s food and fibre exports surged to a record $11.4 billion in 2013-14, led by increased demand for red meat exports and ongoing strong interest from China. Premier Denis Napthine and Minister for Agriculture and Food Security Peter Walsh launched the 2013-14 Victorian Food and Fibre Export Performance Report at Melbourne’s Wholesale Fruit and Vegetable Market today. In 2013-14 the value of Victoria’s food and fibre exports grew by $1.2 billion (12 per cent) to hit $11.4 billion, with trade to Victoria’s number one export destination, China, growing 15 per cent to $2.7 billion. “These terrific results once again confirm the tremendous contribution agriculture and food manufacturing make to Victoria’s economy, and reinforce why the Coalition Government is so strongly committed to supporting these industries,” Dr Napthine said. “Victoria has more than 30,000 farms, and agriculture and food manufacturing support 163,000 jobs, many of those in regional and rural communities. 11
CITIES & REGIONS Melbourne Melbourne Wins World Climate Leadership Award The City of Melbourne has again been recognised as a global climate leader, winning a C40 & Siemens City Climate Leadership Award for its Urban Landscapes Climate Adaptation Program. Lord Mayor Robert Doyle accepted the award at a ceremony in New York in front of more than 250 Mayors, city planners, policy-makers and influential thinkers from around the world. It is the second year in a row the City of Melbourne has received the prestigious award. “The City of Melbourne implemented our Urban Landscape Adaptation Program in 2010 to protect our people, businesses, trees and other environmental assets after more than a decade of drought, low rainfalls and record-breaking extreme heat,” the Lord Mayor said. “We have spent $40 million above ‘business as usual’ implementing scalable solutions to reduce our susceptibility to drought and cool our city by four degrees celsius.” Chair of Council’s Environment Portfolio, Cr Arron Wood said the City of Melbourne’s Urban Forest Strategy, Open Space Strategy and stormwater harvesting initiatives had contributed to the Urban Landscape Adaptation Program. “Our Urban Forest Strategy aims to double our tree canopy cover from 20 to 40 per cent to make the city cooler: in four years we’ve planted 12,000 new trees,” Cr Wood said. “We have created an additional 10,000 sqm of green space in the city since 2012, including converting 5000 sqm from asphalt to parkland. “The City of Melbourne has also installed major water harvesting infrastructure at Fitzroy 12
Melbourne has won the City Climate Leadership Award for the second time in a row © Copyright City of Melbourne 2010
Gardens, Birrarung Marr, Queen Victoria Gardens and Darling Street which provides 25 per cent of our annual landscape water requirements.” The program was also recognised with awards from The United Nations Association of Australia and the Banksia Association in 2013. This is the second consecutive year Melbourne has won a C40 & Siemens City Climate Leadership Award, after the Melbourne Sustainable Buildings Program won the Energy Efficient Built Environment category last year For more information on the awards, go to: http://cityclimateleadershipawards.com
Parramatta Malcolm Turnbull praises Parramatta’s Smart City vision Federal Communications Minister Malcolm Turnbull has praised Parramatta City Council’s vision for a “smart city” based on high-tech digital communications and strategic links with education and research providers.
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During a visit to Parramatta, Mr Turnbull said the ParraConnect committee had thought carefully about how to use the benefits of the National Broadband Network in areas such as the Westmead health precinct and the University of Western Sydney. “I want to congratulate the ParraConnect committee … for the important work they do in ensuring that Parramatta becomes and will remain a vibrant, diverse, productive and thriving city,” he said.
businesses with free personalised advice and support from a network of experienced business advisors as part of a state-wide program to boost the business sector. The City has joined forces with the Office of the NSW Small Business Commissioner to bring the Small Biz Connect program to the inner city. This will see experts offer low-cost, tailored business advisory services to local small businesses. The program will run in Darlinghurst, Redfern and Kings Cross and give both emerging and established businesses the chance to work closely with advisors on everything from taking your business to the next level to achieving work-life balance.
“Parramatta’s continued growth will depend heavily on the types of jobs that policy settings and public and private sector activity generate here – and those in turn will in part depend on the Sydney metropolitan area’s ability to not Lord Mayor Clover Moore said the program simply grow, but to plan for and provide the necessary infrastructure, amenities and services was a fantastic addition to the City’s ongoing support for the more than 18,000 small to keep pace with that growth.” businesses across the local area. Mr Turnbull was speaking at the Parramatta “Small business is the lifeblood of our city, so Smart City briefing on Wednesday 17 we’re doing everything we can to support the September. The briefing was organised by the local business sector and the thousands of ParraConnect committee, a partnership with Sydneysiders it employs,” the Lord Mayor said. the community to develop high technology in Parramatta. “Research has shown businesses that invest in mentoring and support are more likely Lord Mayor of Parramatta, Cr John Chedid, to develop the skills they need to seize said Council was encouraged by the opportunities, overcome challenges and Minister’s innovative ideas for broadband and experience growth. positioning Australia as a leader in high-tech communications. “We’re pleased to be working with the Office of the NSW Small Business Commissioner to help “Our Smart City campaign is looking at ways bring this program to the city, and encourage we can expand our digital initiatives such as local businesses to take advantage of the free wi-fi- in the local public sphere,” he said. services and support on offer.” “Already we have free 5-G wi-fi available in NSW Small Business Commissioner, Robyn selected locations near the Town Hall and we Hobbs, said Small Biz Connect had made a are looking to expand this technology as we significant difference to the success of many construct Parramatta Square and other key of the small businesses it assists across NSW, CBD buildings.” including those in metropolitan Sydney.
Sydney City of Sydney Encouraging Big Success From Small Business The City of Sydney is supporting small
“Small Biz Connect advisors have delivered more than 1,600 hours of practical face-to-face business support in central Sydney over the past year, and we’re delighted to be working with the City of Sydney to further expand these services to small businesses in the city,” Ms Hobbs said. 13
AUSTRALAND
Cockburn Living Project
Award-Winning, Exceptional Living By Nicholas Paul Griffin
As one of Australia’s leading developers, Australand Property Group are focused on developing a portfolio of projects in strategic locations capable of attracting a broad target market, whilst offering a consistent supply and diversity of residential living options. The company seeks to ensure customers have a sense of comfort about buying into a quality environment and peace of mind about a long-term commitment to place creation. Australand’s activities span across Australia, including the development of residential land, housing and departments, as well as work on commercial and industrial properties and property management. The company’s last two projects in Cockburn Central have both been Urban Development Institute of Australia (UDIA) award winners, and reflect Australand’s continuing commitment to delivering high-quality, innovative designs and reward a “people driven” company which strives to keep its customers at the heart of everything it does.
Australand
After spending some years with Australand in the roles of Business Development Manager and Development Manager in both the Sydney and Perth offices, Mr. Perrin began working for Nakheel in Dubai, spending nearly three years on the Palm Jebel Ali and Waterfront projects as a Development Director, before rejoining Australand in his current position. Over the years Mr. Perrin has been intimately involved in a number of high profile projects, which have seen him undertake a range of tasks from negotiating with vendors and government authorities, to design refinement and value management. His experience covers a variety of building forms, including both high and low-rise apartment buildings, integrated residential/retail mixed-use developments, combining minor commercial and retail elements, detached and attached villa and townhouses, as well as plot subdivision design. Additionally, he has been involved in high-rise residential and mid-rise commercial offices, and commercial car park developments.
Residential WA
Tony Perrin GM, Residential Australand WA
Tony Perrin The Australian Business Executive recently had the pleasure of speaking with Tony Perrin, General Manager of Australand’s Residential Western Australia division, to learn a little more about the company. Mr. Perrin’s resume is highly impressive, having been involved in a variety of property development roles for over 20 years. Gaining a Masters qualification in Project Management and a Bachelor of Applied Science in Quantity Surveying from Curtin University in Perth, Mr. Perrin has also undertaken Executive Management related courses at the MacQuarie Graduate School in Sydney. 16
According to Mr. Perrin, residential trends in WA are currently affected by a number of significant industry issues. “With WA’s population growth largely reliant on immigration and interstate migration,” he says, “housing choices are largely reliant on what forms of living people entering WA are comfortable with.” The traditional 4x2 bedroom home with large backyard is a product largely driven by the needs of local mature generations. This is not reflective of the growing offshore and immigrating purchasers demands or sectors of the younger first-time buyer market. The region will continue to see growth in lower maintenance, turnkey compact forms of housing such as apartments and townhouses at the expense of the conventional detached home. Likewise, WA’s sub-contracting trades will mature in coming years which will see the shift of many sole trades into smaller scale commercialised subcontracting teams. This shift will come as a direct result of the popularity of medium scale infill apartments and large-scale turnkey housing developments.
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Productivity improvements in delivery time of housing in turnkey outcomes will also apply pressure to the less efficient and unreliable nature of sole trades working on single sites, which are in effect costing purchasers in additional rental payments during construction. Affordability is driving more compact living, and with costs of building remaining stable over the past five years, the reduction in land area is the primary driving force behind affordable living options. One issue that has become noticeable recently is that there has been a significant adjustment in design to the point where the design standards of apartment living afford better internal space than housing. Some housing plans indicate 3m by 2.4m master bedroom, while others have a skylight and no windows. In Mr. Perrin’s view, “it is very debatable as to whether these forms of accommodation are creating socially appropriate living options.” Design and development flexibility for the
apartment and integrated housing market is currently constrained through strata title reform delays, in particular the opportunity for industry to use the Community Title Scheme. This platform operates in all other states bar WA and puts significant constraints on mixed use projects in particular, but also places large hurdles in the path of major projects that would add great character-changing qualities to the fabric of Perth. Mr. Perrin believes that Stamp Duty concessions for off the plan sales should be taken more seriously by government as a means of supporting its delivery of the urban consolidation strategy in Directions 2031, West Australian State Government’s initiative to guide change and the growth in Perth over the forthcoming decades. Currently, most new housing on the fringe pays only on the land value of a finished dwelling whilst infill accommodation pays on the fully constructed dwelling price. Infill development is generally driving greater contributions in GST through
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Australand
construction costs being of higher value. Mr. Perrin believes that “some balance in this area would offer the consumer more options and
“We expect our buildings to be built safely, with a disciplined approach to design, delivery, quality and timeliness to ensure we meet our customers’ needs.” value.”
Development Assessments Panels Australand’s WA Residential Business unit has been firmly positioned around delivering
a mixture of master-planned greenfield communities, urban infill housing and apartment developments, for over 10 years. The Perth market offers a range of new infill opportunities as a result of Development Assessments Panels (DAP) ensuring a balanced view and efficient timeframe for development approval decisions and approval reforms. In the years before the global financial crisis, apartment development was largely constrained to the Perth CBD and its surrounding areas, as well as satellite city Joondalup. The DAPs have greatly assisted the acceleration of apartment development locations outside these traditional areas. According to Mr. Perrin, the company believes strongly in ensuring attention is focused on a select range of projects that offer excellent living experiences and quality long-term investments. “We expect our buildings to be built safely,” he says, “with a disciplined approach to design, delivery, quality and timeliness to ensure we meet our customers’ needs.” The combination of these attributes
Architects for the Port Coogee Marina Village Retail Precinct w w w. t a y l o r r o b i n s o n . c o m . a u
ARCHITECTURE l URBAN DESIGN l INTERIORS 18
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help the delivery of a strong, enduring investment value and underpin a continuing interest from previous clients to reinvest in the Australand brand. Mr. Perrin says that the company will continue to operate an internal construction business to assist in delivering complex multistage projects, where flexibility in commencement of buildings is needed to protect the customer handover experience. One of the most important factors for any property development business is the establishment of quality contractors. Australand have a broad range of consultant teams who align their service values with the company’s key business values of authenticity, respect, dynamism and passion. The company has forged strong working relationships with many of its consultants, which has seen some continue to work with Australand for over 20 years. In the words of Darryn Stone, Australand’s WA Development Director for Built Form, “we work extensively with AS4801 approved contractors but have a prominent,
rigid and focused approach to a safe worksite for our internal subcontractors who support our internal commercial construction team.” Mr. Perrin is always keen to talk to businesses that offer innovative thinking and new and enterprising services. Interpersonal relationships between Australand staff and consultant personnel are largely founded on trust and reliability, but must also rely on the consultant’s capacity to respect the company’s unique and intense design review and development process. The company undertakes tenders for almost all construction work, but looks favorably upon partnering approaches where time cycle benefits or cost efficiency can be achieved.
Port Coogee One of the company’s most significant works in recent years is the hugely ambitious and multiaward winning project at Pantheon Avenue in North Coogee, on the Cockburn coast.
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Australand
The Port Coogee Project
The Port Coogee Project 20
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The Port Coogee Project
The Port Coogee Project 21
Australand
Taking advantage of a unique opportunity to transform an old industrial coastline into a
“Port Coogee is a
genuine coastal jewel, a superb place to live and a facility for the people of Coogee and Cockburn.” living, breathing, waterfront hub, Australand set out a vision of a well designed, compact and connected oceanside community, to support a diverse range of uses in a sustainable urban environment, well integrated with public transport. The completed Port Coogee project is one of Australia’s largest coastal marina development projects, clocking in at close to a $2billion end cost, and consisting of over 810 house lots, approximately 1,100 apartments, a 300 berth marina and a retail, commercial and tourism precinct of approximately 12,000sqm. The project has won four state awards (UDIA) and three national awards (2 UDIA and 1 Property Council) since completion. Located within the City of Cockburn, approximately 23km southwest of the Perth CBD and 5km south of Fremantle, Port Coogee will be home to more than 4,000 to 5,000 people and a thriving, modern community set within a coastal playground. Here lies a development unique across Australia in Australand nationally, with truly region-defining implications. Within the submission criteria for the 2012 UDIA National Awards for Excellence, the Port Coogee application excelled in respect of the key criteria of Urban Form, Community Creation and Integration, Environmental and Engineering Considerations, as well as a number of other specifications. The planning for the development struck a balance between residential zones, marina zones, environmental impacts, sustainability goals and commercial 22
considerations. Areas of environmental impact were reduced, the public areas of Coogee Beach were maintained, and land use zones were linked to rejuvenate degraded areas and achieve high permeability. The Local Structure Plan (LSP) uses included: a marina and associated water-based activities; residential and short stay accommodation; tourism; retail and commercial; and a diverse range of recreational activities. The entire urban structure is centred around the marina’s natural amphitheatre setting, with a local road pattern enveloping and gravitating towards the centre stage that is the Marina Village. The architecture is strongly influenced by the special qualities of the site. These include the colours of the landscape, the topography of the development and the microclimate, with the need for adjustable indoor/outdoor spaces to create a balance between privacy and transparency. Whilst maintaining a focus on site-responsive design, good solar orientation of lots has been considered and met for the majority of the estate. The urban design has been directed
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CLE congratulate Tony Perrin and the Australand Team for the delivery of world class projects that continue to set new benchmarks
CLE Town Planning + Design is committed to the delivery of outstanding contemporary urban design, subdivision and master planning outcomes. For more than 25 years we have been providing clients with individual planning advice and market responsive outcomes. We are committed to superior service on your next project.
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The Port Coogee Project towards maximising passive solar design with north-south streets and capturing maritime breezes through benching and open space placement. The road layout plans were based on a sound and logical hierarchy to provide for traffic movements of local residents, as well as visitors to Port Coogee. To achieve an integrated development area, the existing Cockburn Road was realigned to the eastern boundary of the developable area into a fourlane road. This moved all the transient traffic from the zone, and also enhanced Cockburn Road itself through its elevated position and views of Cockburn Sound. The street network provides a well-connected, permeable and legible subdivision pattern designed to manage distribution of vehicular movements and maximise pedestrian accessibility. The street layout is also designed to maximise ocean views and celebrate views of the public realm (such as public open spaces). All higher density lots within the development are provided with laneway access to facilitate an attractive and 23 MN27a Australand ABE Advertisement August 2014.indd 1
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pedestrian-oriented streetscape. The street network within the Marina Village centre allows for temporary road closures for community uses and events, freeing up pedestrian autonomy without adversely compromising road traffic flow around the Village. The focus for the project was on creating a place that works both on a local community level for the residents and as a destination for visitors. The mix of development is aimed at getting closer to a ‘whole of life’ approach, offering ‘traditional’ or ‘family sized’ lots, small lots and other medium density living opportunities, as well as a significant amount of higher density apartment living, offering choices to suit people at any stage in their lives. Current land for sale at Port Coogee ranges from under $420,000 for centrally located lowmaintenance lots close to the Marina Village up to $1.875million for island living lots with a boat mooring envelope. Port Coogee is a genuine coastal jewel, a superb place to live and a facility for the people of Coogee and Cockburn. It also represents a significant draw for visitors from beyond; a place in which to live, relax, socialise, wine, dine, shop, play, browse and soak up the unique marina atmosphere and the beauty of the West Australian coastal environment, all in an engaging village setting. Cockburn Living Perhaps the most impressive aspects of Australand’s portfolio are the significant apartment developments in Cockburn Central town centre, consisting of six physical buildings (Axis, Linx, Axon, Luxe, Kingston 1 and Kingston 2) with a seventh, the Kingston 3 project, on the verge of completion. The fourth and final Kingston unit is also in the process of being built and sold, as well as Australand’s newest addition to the neighbourhood, Vicinity Apartments. All of these projects are regarded under the umbrella of Cockburn Living, a name Australand owns as the developer in the immediate town centre area of Cockburn Central, and represents a huge boost for the local community in terms of the provision of living solutions. 24
The Luxe Apartments project was another submitted for consideration for the UDIA Awards for Excellence in 2012, in the Medium Density Development category (Port Coogee was submitted in the category of Environmental Excellence). Luxe was the fourth apartment complex to be completed at Cockburn Central Town Centre—a significant, emerging activity centre situated in Perth’s vastly expanding southern growth corridor. Comprising 13 ground floor retail units and 81 apartments, available in a range of size options, this transit orientated development combines luxury openplan living with a low maintenance, urban lifestyle. Australand worked with other developers and key agencies to forge a collaborative approach for Cockburn Central. As part of the Cockburn Central Landowners Working Group, Australand was able to deliver and share its objectives and vision for Luxe to ensure it met and exceeded the shared expectations for the area—projected to eventually serve a surrounding population of 190,000 people. Active involvement in a
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The Kingston Apartments of the Cockburn Living Project
The Kingston Apartments of the Cockburn Living Project 25
The Kingston Apartments of the Cockburn Living Project series of key stakeholder/community vision workshops furnished the construction team with important insights regarding interim improvements and long-term solutions to increase the desirability and functionality of the area. These workshops were instrumental in creating a strong place vision for Cockburn Central town centre and formed the basis for the design and functionality. Australand invested time in developing a marketing strategy that positioned Luxe as one of the leading residential complexes in the town centre. Developing the ‘healthy living’ theme actively promoted the strong communal features of Luxe—positioning the complex as a lifestyle ‘choice’ rather than a simple apartment purchase. To further promote the healthy lifestyle on offer, all purchasers were given a voucher to purchase a bicycle as part of the welcome pack to Luxe. Strong, directional images offered potential residents a glimpse of life at Luxe, whilst a digitally designed brochure, downloadable fact sheet and web pages furnished purchasers with detailed information on the pricing structure, floor plans and information on the surrounding area. With prices for a two-bedroom, two-bathroom apartment starting at $430,000, including one basement car bay and 81sqm of living space, Australand received a strong response to the marketing campaign. Since 2007, over 400 apartments have been sold in the 26
entire Cockburn Central complex. The low maintenance, stylishly appointed apartments, featuring communal recreation facilities, offer a convenient lifestyle within walking distance of the Cockburn Train Station and bus interchange, the Gateway Shopping Centre,
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and are just a short drive away from Fremantle, beaches and the Perth CBD. This active way of life has appealed strongly to young professional singles and couples seeking to enter the property market, down-sizers seeking low maintenance living and FIFO workers wanting
“Designed by award-
winning architects Cameron Chisholm & Nicol, the apartments all have an average six-star overall energy rating.” lock and leave secure properties. The Kingston Apartments project in the same area was the winner of the Medium Density Development category at 2014’s UDIA awards, and represents a huge success for the company in the thriving Cockburn Living development. Inspired by the ‘Eixample’ District in Barcelona, Kingston Apartments makes reference to the District’s quadrant neighbourhood designs. It comprises four individual apartment buildings each with their own identity and address, yet inextricably linked by shared recreational and open space zones and symbiotic architectural design. There is a clear and coherent approach to the design of the site and block as a whole. Significant financial and developmental benefits were gained by the innovative design of the apartments. Staged construction of each of the four apartment buildings minimised the financial risk and allowed Australand to fund subsequent stages from sales. The luxurious central shared zone—which was completed during the construction of the first apartment building, thereby allowing the first residents to take advantage of its benefits— comprises a gymnasium, lap pool and lounge area, barbeque and pizza oven and an outdoor cinema. An integrated car park is concealed underground and accessed from Sleeper Lane, an aspect of the build designed to house the less visually appealing service-based elements of the building. Product differentiation is evident
from a wide range of apartment layouts with varying aspects. While affordable one and two bedroom configurations are on offer, there is a high level of product diversity ensuring they appeal to a broad demographic mix attracting both investors and owner-occupiers and stimulating a more diverse occupant character for the overall development in the longer term. A key focus of the design was to minimise the reliance on high-energy cooling systems, by integrating cross ventilation as much as possible and maintaining an urban design both climatically responsive and sustainable. As a result two thirds of Kingston Apartments have cross ventilation—exceeding five-star national benchmarks for energy efficiency. Designed by award-winning architects Cameron Chisholm & Nicol, the apartments all have an average six-star overall energy rating, with some even up to 7.5 stars, well above the minimum requirements of Australia’s national building code. Kingston offers residents a healthy, energy efficient way of living with excellent indoor air quality, lighting, heating and water consumption. Committed to meeting the needs of the local community and the aims of LandCorp to develop Cockburn Central as a key Activity Centre, as with the Luxe development, Australand was able to draw on its relationship with stakeholders, local government and community groups to generate a visually appealing design that complemented the area, while at the same time promoted the vision for the estate. The approach to the architectural character of Kingston was to successfully blend the built form with the character, grain and scale of the building edge at street level. The impact that Australand is having on property development both in Western Australia and across the country is truly commendable, and no doubt there will be more to come from this socially conscious company in the coming years. Those residents benefiting from the excellent accommodation and amenities at any one of these WA developments will agree that Australand properties are an extremely welcome addition to the area.
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www.australand.com.au 27
GK STRATA
MANAGEMENT
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Strata Issues and Sydney
GK Strata Managements talks company growth, commissions and delivering value. There’s a lot of misunderstanding within the general public of how strata management companies work and the benefits that they provide their customers. From issues of compliance, to commission structures and value for money, to building maintenance issues and regulations, there’s a lot that a strata management company must cover. To address this, we catch up with Melissa Truscott, Managing Director of GK Strata Management. Melissa takes the time to speak with The Australian Business Executive to offer her thoughts on these issues as well as her company’s continued growth. Within this interview, she’s also invited Greg Haywood to provide a better understanding of how commissions work in the industry. Greg is the Group CEO of Prudential Investment Company Australia (PICA), and speaks to us in his capacity as President of SCA (NSW). 29
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listed buildings, residential garden estates, industrial estates, shopping centres, community associations and building management committees. Historically, we have focused our business on servicing the Eastern Suburbs and innercity regions. However, we are now driving the business to expand our portfolio to encompass all regions within a 15km radius of the CBD. JL: What are the strengths and qualities of the management team and what impact have these had on the success of the company? MT: GK Strata has two directors, David Terry and myself, Melissa Truscott, as Managing Director. David has over 20 years experience as a strata manager. During that time, he has managed all possible issues that may be faced by an owners corporation at any given time. He is extremely well-versed in governing legislation and provides a wealth of knowledge and advice. Not only to his clients within his personal portfolio, but to the other strata managers within our office who are lucky to have access to him on a daily basis to be of assistance where necessary.
Melissa Truscott MD, GK Strate Management J. Landry: Can you describe some of the key features of GK Strata Management’s portfolio in terms of variations, location and size? Melissa Truscott: GK Strata Management (GK Strata) has been in business for over 30 years. It was originally established by George and Kay Terry with a small portfolio managed from their home. George and Kay retired and sold their business outright to their son, David Terry, who remains in the business today as a Director and our licensee-in-charge. GK Strata now manages almost 450 strata schemes and employs 29 staff. We manage all types of strata schemes from heritage 30
Complimenting David’s strata management experience is the corporate business experience that I have gained over the past 20 years. My primary experience is in project management and business process improvement, which has proved particularly beneficial to the back office support of the business. I also have strong experience in human resource management, client relationship management and compliance and regulatory liaison – all skills that have been transferable to the strata management industry. We are both passionate about continual customer service improvement. To assist us to take our customer service to the next level, 12 months ago we invested in the recruitment of Damien Excell as our Operations Manager. Damien has extensive relationship management experience across a range of industries, including telecommunications, gaming and FMCG. He has been appointed to manage
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general business operations and human resource management, but most importantly to improve the service experience of our existing clients.
“We are continually considering ways to do things better to improve client experiences with our business. ” Included in our senior management team are Frances Portokalli (Property Services Manager) and Beatriz Castro (Finance Manager). Between them, Frances and Beatriz have almost forty years experience in the property industry. Our senior management team has a strong commitment to integrity and reliability and are highly ethical. Our clients trust and recommend us on this basis. JL: What is the fundamental philosophy underpinning GK Strata Management’s operations? MT: Continual business process improvement and customer focus underpin our operations so that we may be proactive in exceeding our clients’ expectations and our contractual requirements. We see this as the most important way we can differentiate ourselves in the market. We are continually considering ways to do things better to improve client experiences with our business. We investigate new concepts in customer service across all service industries and determine whether they could be implemented or adapted to our particular industry needs. We don’t benchmark ourselves against the strata
industry for customer service, we benchmark across all service industries. JL: What are some of the company’s successes that really stand out for you? MT: We have grown the business from a portfolio of a handful of buildings to almost 450 schemes purely through organic growth and word-of-mouth. Historically, GK Strata has never considered marketing the business to achieve growth. In the last six months, we made a decision to test the waters with marketing and we have already exceeded growth in the last six months than we have in any preceding financial year. We also have excellent retention rates compared to our competitors of a similar size. I’m also very proud of the corporate culture that we have in our business. Considering the stressful nature of strata management, GK Strata is still a great place to work and the retention rates of our employees are also higher than our competitors. JL: As an organisation that has previously not done any marketing, how did you decide to market yourself and how did you identify the results as a success? MT: We recognised that the traditional forms of marketing that small business used in our industry simply wasn’t getting great market saturation. Traditionally, small strata management companies would undertake basic forms of marketing and promotion such as letter box drops and advertising in local newspapers. Our client base is made up of virtually every market segment – young couples, families, retirees, pensioners, professionals all of which may be either investors, owner-occupiers or tenants, many with competing priorities. Traditional forms of marketing were not reaching many of these segments. We recognised that we needed to adopt a more diversified marketing strategy. We now utilise print media, social media, internet advertising 31
GK Strata Management
and industry education as ways to increase our brand recognition. We maintain a web-based CRM software whereby we track all potential new business leads so that we obtain an understanding of where, how, why and when a potential client has considered our services. We also monitor internet traffic and social media interactions to determine what traction we are getting in these less traditional forms of marketing in our industry. Based on these results, our website is still a great generator of new business leads, however word-of-mouth continues to be our prime lead for new business opportunities. Participating in industry education is also starting to gain momentum for our business. JL: You’re a board member of the NSW division of Strata Community Australia NSW (SCA). Can you tell us how that came about and some of the key aims of the organisation? MT: A vacancy became available with the resignation of a board member mid-term in 2012. I was approached by the then vicepresident to consider filling the vacancy and was appointed by the board in November 2012 for the remaining term. Whilst participation can at times be challenging and requires a commitment of your personal time and energy, I personally find the experience very rewarding working and meeting with participants across 32
our industry and with the other board members themselves who are all extremely committed to promoting the organisation and its members across the sector. Our key aims include the education and professional development of our members through accreditation pathways, advocacy for the sector as the peak representative when lobbying government and other bodies or associations, maintaining a code of conduct for members within the sector for the benefit of our clients, determining consistent standards of best practice for the use of our members and to promote business links and networks among all participants in the sector at local, national and international levels. JL: Insurance commissions are a hotly debated topic in the industry at the moment. Do you feel that they’re a necessity that benefits the industry? Greg Haywood, President of SCA (NSW): Insurance commissions subsidise the base management fees and this has been the case for over 20 years. Without them the strata industry would have complete market failure as the majority of companies would not be profitable. Market failure would result in many business failures with jobs at risk. The current arrangement has been proven to be cost effective for our clients and the strata managers as authorised representatives of the
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underwriter/broker has additional PI coverage. There already exists with the larger schemes the option for a fee-for-service model and a sharing arrangement - this has been the case for many years.
the correct covers and types of insurance are in place. In the event of a claim the strata manager and/or company manages the claim process. The commission covers the cost of delivering the above services.
Under the new proposed legislation the commission model will be retained with full disclosure which is supported by the SCA (NSW) board.
Without this service the owners corporation/ executive committee would need to do this themselves and/or get a broker who would charge the full commission and probably charge a fee to handle any insurance claims.
JL: Can you give us an explanation of how they work? GH: The strata manager (some companies have an Insurance Department) obtain three (3) quotes if possible, depending on claims history and/or the state of the building. If required, the strata manager will get their nominated insurance broker to discuss the insurance requirements and covers for the scheme. This is normal practice for the larger schemes. The industry deals with the strata specialist brokers and underwriters to make sure that
JL: How do these commissions deliver value for companies? GH: The insurance commission covers the costs that the company incurs throughout the insurance process. They also underpin the true profitability of the strata industry in its current form. It makes sure that the schemes have the insurance values that they need to reflect strata living. JL: Commission based incentives often have negative connotations to the public,
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how do you educate them about the benefits? GH: The education needs to be about full disclosure as the negativity is about secret commissions and in the case of insurance commissions, they are disclosed in the management agreements. Importantly, the clients need to better understand that the insurance commission has always subsidised lower management fees and that the strata manager (as an authorised representative of the broker/underwriter) is well placed to make sure that the insurance needs of their clients are met. Without this financial model the overall costs would increase for the client as they would be paying higher fees to brokers and strata management companies would need to increase the existing management fees to replace the loss of commission revenue. In addition, they would need to charge additional fees for lodging insurance claims. In effect, the current arrangement is cost efficient for the client. JL: How are commissions structured in the industry? GH: Basically, depending how the insurance is placed, especially the larger schemes, then it could be a fee-for-service. For the majority of schemes it will be a commission which can have a range of 15% to 20% and in some cases lower, due to the covers. These are disclosed in the standard SCA (NSW) endorsed management agreements. JL: What are some of the problems you frequently have to address? MT: There are a number, but I’ll discuss new building waterproofing, modern building quality, old building maintenance, and fire standards. New Building Waterproofing The two major difficulties we experience when faced with waterproofing issues in a new building is convincing our clients to engage a 34
professional consultant to assess and provide an expert opinion on the cause and solution to rectifying the issues. Often, they believe it is as simple as initiating a defects claim. It’s necessary to clearly specify the issues and provide the necessary solutions before doing so. The other major difficulty is that the individual owners that are affected want the repairs completed now, whereby the owners corporation wants to undertake the repairs as part of the defects claim through Home Warranty Insurance that often means lengthy and expensive court proceedings. Modern Building Quality Whilst issues with waterproofing are an obvious concern we often find that extremely poor paint finishes and cheap fittings and fixtures are a regular concern. The building may get certification from a private certifier however, poor quality finishes and inexpensive fittings and fixtures mean that it is not fit for the purpose of communal residential living. Owners Corporations generally have to allocate expenditure to upgrade to a suitable quality sooner rather than later.
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Old Building Maintenance The problem with older buildings is complacency amongst owners and a reactionary approach to repairs. These are buildings that - despite the requirements now in place for sinking fund reporting - often do not have adequate funds set aside since the building was originally registered. They are hamstrung by a legacy of a minimalistic approach to raising regular sinking fund levies and therefore, works may be deferred for many years.
clients remains the inconsistency between fire maintenance companies in their assessment and consideration of fire standards. Fire doors and other fire systems that pass inspection one year - and then the following year are reported to fail standards. Another area of frustration is large fire defect reports that must be resolved within very short time frames to ensure compliance with the Annual Fire Safety Statement (AFSS). However, the recent decision to categorise repairs to fire systems into levels of priorities will help to address this frustration to some degree.
In addition, the legislation only requires that a sinking fund report is compiled, there is no requirement to adhere to the recommendations or plan.
JL: There is often a debate about the value for money that a strata agent offers. What do you think are the key areas of importance for strata?
To remedy the lack of sinking funds, special levies may have to be raised that may create financial hardships and unfairly burden new owners who often have large mortgages and therefore, limited cash flow.
MT: I’ll break this answer up into four areas – (i) self-managed schemes or owners corporations, (ii) legislative compliance, (iii) time requirements, and (iv) experience.
Fire Standards
i). Self-managed Schemes (owners corporation)
The great frustration to ourselves and our
A strata manager offers an owners corporation
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GK Strata Management
expertise in so many areas including building science, financial management, contract management, project management, dispute resolution, asset management and contractor compliance. The time and energy that owners must apply to these areas in a self-managed scheme is extensive. Therefore, more often than not, the necessary care and attention is not applied and this can put an Owners Corporation at risk in meeting their legislative obligations. Having a strata manager can be particularly beneficial in ensuring community harmony within the Owners Corporation. For example, when a breach of by-law takes place, the strata manager is the person to intervene on behalf of the Owners Corporation to make residents aware of their obligations. Likewise, the strata manager is the person to follow-up with owners the late payment of levies. In a self-managed scheme, it can be a difficult line to walk when you are the person responsible for ensuring your neighbour – that you may have to see on a daily basis - ‘follows the rules’.
“Strata managers provide safe passage in an everincreasing and complex minefield of legislation. ” ii). Legislative Compliance Strata managers provide safe passage in an ever-increasing and complex minefield of legislation. Furthermore, with the possibility of new legislation, it is the strata manager’s role to ensure they are adequately educated in the area of legislative compliance. It is not just the Strata Schemes Management Act and its Regulations that apply to compliance for a strata scheme. For example, the owners corporation of a self-managed strata scheme needs to ensure the compliance of all tradespeople they engage to perform work at the building, that appropriate accounting standards are applied and satisfactory 36
insurances are obtained. Having a strata manager can eliminate most of the legal risk that would be otherwise held by the owners corporation or its office bearers. iii). Time Requirements Depending on the size and complexity of a strata scheme, the time applied to selfmanagement can be onerous and extensive. Furthermore, there may come times in the life of the scheme that may be more demanding than normal. For example, managing major buildings works, emergency repairs and owner disputes. Then there are regular responsibilities like making someone available to provide access to tradespersons, providing access to owners or prospective purchasers to the books and records of the strata scheme, personal time preparing correspondence, issuing levies, investing funds, and managing meetings of the owners corporation or the executive committee. iv). Experience (understanding building issues) A strata manager builds experience and knowledge through not only continual professional development but mass management. A strata manager will be exposed to varying issues on a regular basis through the management of a portfolio of buildings. Owners corporations can draw on that experience quickly as opposed to selfmanaged schemes that will need to investigate, research and interview for guidance and assistance. A strata management company also provides access to an established network of tradespersons, consultants and suppliers. Often these business relationships extend many years and can ensure quality in delivery and service for the owners corporation. Even should a member, or members of an owners corporation, feel they may have the time and energy to self-manage the scheme, a lack of experience, despite their good intentions, could put the owners corporation at serious legal or financial risk. www.gkstrata.com.au
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AustralianBusiness Executive.com.au
37
CITY BEACH BUILDERS
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Quality, Growth, and a Vision By Nicholas Paul Griffin
39 Photo courtesy of Yael K Designs and Ron Tan Photography
City Beach Builders
“One of Perth’s biggest challenges is to get away from the double brick mentality so often associated with quality,” says Brian Connor, Managing Director of City Beach Builders, a small Perth building practice focused on making the building process personable—whether it be with the architect, the client or when managing trades. The company’s dedicated team work to create exceptional homes at high standards in competition with some of the best in Perth, helped to achieve this level of quality by a highly skilled pool of contractors. The mining boom in Perth has meant that the pool of skilled tradesmen in the city remains quite small. Mr. Connor estimates that the trades sufficiently skilled and geared to produce very high quality finishes make up less than 5% of the overall pool. The company has spent a long time establishing its trade base, and is able to keep hold of these contractors by doing an excellent job of looking after them. “I would like to thank all of our trades for the great work they do,” Mr. Connor says. “We certainly could not do it without them.” City Beach Builders’ reputation for exceptional quality has been earned not only through the skill and application of the tradesmen, but also as a result of the hands on supervision of every aspect of the build provided as standard. Jobs with full time supervision are not common in Perth, and Mr. Connor is certain this is a functional advantage that separates City Beach Builders from many of its competitors. Melbourne Experience After completing his BASc in Surveying at RMIT, Brian Connor took his first job with Lewis Construction, as a surveyor, where he was working on large-scale projects at a relatively young age. After a stint at Melbourne Central, he applied for a job with Kane Constructions as a trainee project manager, and within a year was running a $10 million project. His next project involved working with architect Glen Murcutt, site managing the extension to the Raheen mansion in Kew. Mr. Connor is a great admirer of Murcutt’s designs, saying: “There is a lightness and simplicity to Glen’s work that 40
“City Beach Builders’ work with some of Australia’s most respected names in design and architecture ” has definitely influenced me in my design work today.” Next up was a move into running his own business—a small company called Connor Bros Builders, undertaking project home and unit development work. When the opportunity arose to relocate to Perth 18 years ago, Mr. Connor did not want to turn it down. Having worked since his relocation as a project manager for Lend Lease, a building consultant in his own consultancy business, and as manager of a medium sized luxury home building firm, Mr. Connor started up City Beach Builders five years ago, after spending some time establishing a solid contact base around Perth. A self-confessed perfectionist at heart, Mr. Connor draws heavily upon the influence of his father when discussing his professional successes. Watching as his father built boats, racing cars, rebuilt airplanes and repainted cars and machinery in the backyard garage of their suburban home, he developed the same passion for construction and perfection as he saw so often on display in that work. Perry Lakes Development Through its work with some of the top designers and architects throughout Australia, City Beach Builders has developed significant expertise in working with intricate detail and specialty finishes. In its mission statement, the company promises to strive to create a masterpiece when working with every element of the build, and expresses enjoyment in stretching the boundaries of home building. Having spent a good deal of time in commercial buildings and on the East Coast of Australia, Mr. Connor advocates the use of precast floor and wall panels in order to save time and space
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Photo courtesy of Yael K Designs and Ron Tan Photography
on a build. In this process the traditional use of large floor support beams, which restrict the height of ceilings, can be almost eradicated altogether. In fact, there has been something of a revolution in the types of external cladding products available recently. A drive down south from Perth to Eagle Bay and the winery regions of Margaret River highlights the many designers employing these building methods to great effect. City Beach Builders’ own homes in Perry Lakes have been designed using precast wall and floor panels, and timber wall framing with various types of cladding, including natural hardwoods. Many of these products have a lower carbon footprint than brick and provide
better energy efficiency. Mr. Connor freely admits to aspirations of specialising in this kind of build, extolling the virtues of being environmentally aware and open minded to new techniques and technologies, knowing that different materials and textures are capable of significantly enhancing a project. The forthcoming display homes in Perry Lakes aim to showcase the company’s design and finishes expertise. The Perry Lakes development is on the site of the old Commonwealth Games stadium, an area with an abundance of open space and bush land reserve that extends from the suburb of Floreat and Perry Lakes sporting grounds, down to West Coast Drive, running close to the Indian Ocean. 41
City Beach Builders
The two lots being built on are on the new Stadium Drive, occupying the space once home to the old 400m running track. The frontage of the homes facing onto Stadium Drive is three stories high, mimicking the grandstand of the old stadium. The lots are tiered to accommodate lane access from the rear to car garaging, with the option of a one-bedroom apartment available to rent on each lot allowed under the planning provisions. One of the homes will be used as a display to showcase the design and finishes; the other is being built for a client. Yael Kurlansky City Beach Builders’ work with some of Australia’s most respected names in design and architecture has significantly enhanced what appears to be an already impressive reputation, a fact evidenced by the glowing endorsement in the company’s presentation folder from Western Australia’s award winning Yael K Designs, the company run by one of Perth’s
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leading designers, Yael Kurlansky: “Having worked closely with City Beach Builders previously, they have proved themselves again to be exceptional builders with a keen eye for detail. The overall result has delivered a high-end home to a client, on time and on budget. We look forward to working with them again in the future.” The company’s growing reputation has been further aided by a recent appearance on Channel 7’s “Australia’s Best Houses”, highlighting the excellence in the company’s quality finishes and resulting in a flood of interest in its homes. The house at 8A, Cross Street, Swanbourne, was chosen out of 300 homes featured on the show to be included along with 11 others in the “Best of the Best Australian Houses” episode. Designed by Kurlansky herself, the Cross Street project is a $1.2 million build that punches well above its weight, considering the dollar value of other homes in the area. The company has also
AustralianBusiness Executive.com.au Photo courtesy of Yael K Designs and Ron Tan Photography
developed another home for a separate client on the same lot, adjacent to the build. The two projects on the site were developed for a pair of friends who bought the block in Swanbourne together and split it into two 300m2 lots. Mr. Connor took the clients to Kurlansky, who was instrumental in creating the homes’ impressive look. The houses went on to be winners of the “Aus BDA awards for small lot design”. This build in particular represents an extremely effective collaborative effort between the client, architect and builder, and stands as a project to be proud of for City Beach Builders. Another Yael Kurlansky designed house is located at Kavanagh Street, Wembley, a stunning home boasting polished concrete floors and detailed kitchen design as the centerpiece of the home, opening onto a large covered Alfresco with retractable screening. The Wembley house is also a 2014 BDA award winner, triumphing in the “residential homes to 350m2” category. Further Key Projects A number of other recent builds typify City Beach Builders’ expertise and success in the home building market. Mr. Connor is most proud of the Goonang Road home in City Beach, as it was his first design, and has attracted much interest in the area. The company submitted the Goonang Road home, along with the two houses from the Cross
Street project, for the 2013 HIA Western Australian Housing Awards. The homeowners loved the Sixties Hollywood feel, created with stone and glass, a look very much back in vogue. They liked the idea of recreating a modern version of the Games Village home, as the home that was demolished was built to house the Commonwealth Games athletes in 1965. The budget of around $800k was key, so the home was designed with a wow-factor Gallery at the entry. The center of the home and the balance of the rooflines are simple, low pitch skillion roofs. The end result is a home with spacious living areas and individual wings for kids and parents, separated by comfortable family and living areas. The Port Coogee project by Australand is comprised of a new marina and canal development approximately 5km from Fremantle and around 15km from Perth CBD. The home designed for this fabulous site has a striking front facade, with a floating Alucobond canopy over the front balcony. A key consideration during the design process was the recognition of the wind and the elements, with the final layout embracing the house’s stunning ocean views. The owners wanted minimal maintenance, which heavily influenced the external finishes. The interiors are simple, understated elegance, the rear rooms opening to the pool and 43
City Beach Builders
Photo courtesy of Yael K Designs and Ron Tan Photography
Alfresco. The rear elevation is glazed almost entirely with full height 3m high glazing, taking in the canal and ocean vistas. All steelwork on the job is marine grade stainless or hot dip galvanized, coated with epoxy similar to the coating system employed on the Sydney Harbor Bridge. One interesting feature is the front glass curtain wall design, usually associated with commercial buildings. The glass film and lighting chosen for the building ensures both external visibility and internal privacy, and gives the front balcony the appearance of a floating, airy structure. Home Base Subiaco In order to accommodate the expanding business, City Beach Builders has recently relocated its offices to Australia’s largest building and renovating centre, the Home Base complex in the inner western Perth suburb of Subiaco. “We have moved our office to Home Base Subiaco,” Mr. Connor says, “which has proven to be a good move not only for exposure to a wider market but also to cater for demand for our services. We have no designs on being a 44
volume builder but would like to expand our team of four currently to around ten. Perth is not short of good builders, so the market we operate in is highly competitive. So we need to be doing it better than others to prosper.” The Home Base centre has a modern range of building products and suppliers showcasing their wares, and an enthusiastic management team who ensure the centre is moving forward and revamping the displays to reflect modern trends and materials. Mr. Connor sees this setup as particularly convenient for the company’s existing clients in making product selections, not to mention the extra exposure it offers for the brand to attract a new clientele. Mr. Connor is full of praise when discussing his small but highly skilled management team, each of whom has had a hand in enhancing the business through their hard work. He admits that it has taken a few years to put together a team capable of comfortably expanding the business, and feels the company now has a lot to offer to help Perth’s continuing growth as a leading Australian city.
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www.citybeachexceptionalhomes.com.au
SYDNEY’S HOME FOR EVENTS Resplendent on the edge of Sydney Harbour with breathtaking views over the water to the city skyline beyond, The Star Event Centre is an event in itself. Launched in January 2013, the $100-million Event Centre boasts cutting edge AV technology and lighting and hosted nearly 200 events for more than 145,000 guests in its first year alone! The Star also offers exclusive private dining room options, as well as five-star luxury accommodation in three separate towers within the complex. So when you’re planning your next event in Sydney, make it The Star. Enquiries, call The Star Sales Team on +61 (02) 9657 8568 or email starsales@echoent.com.au
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Association of Mining and Exploration Companies Australia’s international competitiveness must be restored By: Simon Bennison, CEO
The mining and mineral exploration industry has been a major contributor to the Australian economy through the creation of jobs, investment in regional communities, and numerous taxes and royalties which have contributed to Government revenue streams. In the past seven years, the mining industry has paid over $117 billion in Federal taxes and State royalties. The mining industry is also a significant driver of Australia’s GDP. The industry accounted for around 80% of growth in GDP in the March 2014 quarter. For the year 2012-13 the industry contributed 10% of Australia’s total GDP with 2% of the workforce.
Simon Bennison CEO, Association of Mining and Exploration Companies (AMEC)
AMEC
The carbon tax has imposed significant costs and inflationary pressures to Australian businesses, consumers and the economy. In a global economy, this has put them at a significant competitive disadvantage. Overseas competitors are not subject to the same taxes and costs which has resulted in capital going to more attractive jurisdictions such as Canada and Africa. A recent PwC report ranked Australia’s overall tax rating at 133 out of 188 countries analysed. The research found Australia has a total tax rate of 47.7%. The Association of Mining and Exploration Companies (AMEC) is extremely pleased that the Federal Government has recognised the damage that the carbon tax has done to Australia’s reputation and repealed the tax. The repeal will help restore Australia’s international competitiveness and reputation as a safe and stable investment destination. The carbon charge through reduction in diesel fuel tax credit meant all AMEC members have been paying more for their energy. In many cases projects are very isolated and do not have access to the power grid and therefore rely on diesel fuel as the primary source of power. Diesel fuel is a significant input cost and accounts for up to 25% of total costs for base and precious metals. The reinstatement of the diesel fuel credit to pre-carbon tax levels of 38.143 cents per litre will therefore have a significant positive impact on mining and mineral exploration companies. This should have a flow on effect to the level of investment in mining and exploration projects, and therefore jobs and Government revenue streams. These resources companies are providing the future economic growth in the Australian economy, especially in rural and regional communities where companies provide thousands of jobs and much needed social infrastructure. 48
“The Australian mining sector has been a world leader ” However to ensure this remains the case, Australia must have the right policy and business conditions to attract ongoing investment in mining and exploration projects to sustain the industry for the future. Investment in mineral exploration essential A key issue for AMEC has been the fact that the rate of discovery of new mines has not kept pace with the depletion of existing mines. At the same time, Australia’s share of global exploration has reduced from 21% in 2002 and now stands at 12%. The Australian mining sector has been a world leader, successful in a growing competing global environment, but is still dependent upon past discoveries. Recent research from the University of Western Australia shows that about half of Australia’s non-bulk commodities mines would be exhausted in between 7 and 18 years. Their research also showed that it takes on average 7 years to convert a discovery into an operating mine. This long ‘discovery to mine’ lead time means that action must be taken now to prepare for the future and extend the life of the mining industry – and associated Government revenue streams – over the next decade and future generations. Data from the Australian Bureau of Statistics (ABS) paints a similar picture. There have been consistent decreases in expenditure and metres drilled for greenfields exploration. Metres drilled on greenfields (new deposits), at 300,000 metres for the March 2014 quarter, is the lowest in the last 10 years, and is lower than the March 2009 post GFC quarter of 338,000 metres (refer graph below).
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AMEC-AD-007
Support your business and industry by supporting AMEC
AMEC provides members an advocacy power they could not otherwise generate. As a not-for-profit organisation, AMEC relies on membership to continue to drive positive changes in the business environment for the mining and exploration industry.
AMEC provides leadership on legislation and policies affecting your business including: • Exploration Development Incentive • Royalties
• Taxes, fees and charges
• Mining securities • Approvals
Call us today to discuss the benefits of AMEC membership on 1300 738 184
www.amec.org.au | info@amec.org.au | 1300 738 184
ASSOCIATION OF MINING AND EXPLORATION COMPANIES 49
Expenditure on greenfields (new deposits) is also the lowest since June 2006. The number of Initial Public Offerings (IPOs) for Australian based mineral projects has also been declining. There were only 12 IPOs in 2013 and three so far this year - well below the high of 126 in 2007. Other capital raisings have been few and far between. The fact that 67% of funds raised in 2013 for mineral exploration projects on the Australian Securities Exchange (ASX) went to offshore projects, the highest proportion since 2008, is also of concern.
“AMEC has been advocating for policy
changes that will make Australia a more desirable place to invest. �
This is markedly impacting the level of investment in exploration projects in Australia, affecting local communities, service providers, contractors and the Australian economy. Solutions To reverse this trend, AMEC has been advocating for policy changes that will make Australia a more desirable place to invest. This includes an Exploration Development Incentive (EDI), announced by the Federal Coalition in its Resources and Energy Policy paper, and repeal of the carbon and mining taxes. The EDI will allow investors to deduct the expense of eligible mineral exploration expenditure 50
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against their taxable income and should provide a much needed boost to investor confidence. A ‘no taxable income’ test will ensure that the program is only available to junior minerals explorers who will be able to pass a tax credit to their resident investors based on eligible exploration expenditure in Australia.
“We must continue to restore Australia’s reputation as a safe and stable place to invest so the sector can continue to provide the significant economic and social benefits and Government revenue streams. ”
Ongoing investment in greenfields exploration is essential in order that these junior companies can discover the mines of tomorrow. Looking to the future We must continue to restore Australia’s reputation as a safe and stable place to invest so the sector can continue to provide the significant economic and social benefits and Government revenue streams. The repeal of the carbon tax and mining tax, as well as the introduction of initiatives such as an Exploration Development Incentive, will go a long way to recovering some of the lost competitiveness that has occurred in recent years.
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www.amec.org.au 51
Minerals Council of Australia (MCA) What the Repeal of the Carbon Tax means to Investor Confidence An interview with Sid Marris, Director of Industry Policy
Sid Marris joined the Minerals Council of Australia in May 2008. As Director of Industry Policy, he has responsibility for a wide range of policy issues of importance to the Australian Minerals Industry including Climate Change and Energy, Infrastructure and Transport, Workplace Relations as well as contributing on trade, economics and innovation matters. J. Landry spoke with him exclusively on what the repeal of the carbon tax means to the Australian mining industry.
Sid Marris Director - Industry Policy, Minerals Council of Australia J. Landry: What was the immediate effect of the carbon tax introduction? Sid Marris: The carbon tax was a $7 billion hit to the bottom line of companies across the country, this is almost the same as increasing the company tax burden by 10 per cent in one go. By the time it was abolished after two years it had taken $15 billion through either charging permits or adding to the cost of diesel fuel used by businesses.
Minerals Council of Australia
JL: What are were the problems with the scope and reach of the carbon tax? SM: The minerals industry has always argued that measured transition to a low emissions global economy required a global agreement that included reduction commitment from all major emitting nations, encourage least cost emission reduction through market mechanisms that did not impinge on the competitiveness of the internationally traded sector and involve substantial investment in a broad range of low emissions technologies and adaptation measures. The carbon tax fundamentally sought to put Australia much further ahead than any other nation, with a scheme that covered 60 per cent of all emissions at a price that was almost three times the European scheme. JL: How did this compare with the European scheme and its graduation of this process? SM: The European scheme is a good point of comparison. That scheme will take twenty five years to develop. Emissions coverage is only 45 per cent, and even many firms are only required to buy permits for half their emissions and some still have generous exemptions from the full impact of the scheme for several years to come. JL: Which industries were hit hardest by its introduction? SM: For mining companies in remote locations that depend on diesel fuel for all their energy, the carbon tax was a big burden. Even though there were some exemptions for emissions, intensive trade exposed industries such as aluminium and metals refinery. They still faced a cost impost not faced by their international competitors. The coal sector actually qualified under the government own rules to receive exemptions from the full cost of the scheme but that was arbitrarily denied. Critics try to characterise these arrangements as hand outs, but that is completely mislead, they are an exemption from the full cost of tax being added on to business. 54
“The Government saw the tax as a way of redistributing money in the community and decided to over compensate households for the effect of the tax “ JL: How did this undermine competitiveness in Australia? SM: Australia’s mining industry are price takers. The international price is set so any impost from government such as a carbon tax cannot be passed on to customers. Australia’s costs structure is already higher than other countries, with labor costs for some areas 50 per cent higher than equivalents in the United States. JL: What do you think should have been done with the tax revenues? SM: The impossible choice created by the carbon tax was that it was meant to give a price signal to change behaviour but it was levied at such a rate that companies were starved of the funds they needed to invest in research, development and deployment. The Government saw the tax as a way of redistributing money in the community and decided to over compensate households for the effect of the tax, again at the expense of research and development. JL: Does the repeal boost investor confidence now? If so, in what ways? SM: There is an immediate boost to confidence from the repeal of the carbon tax. A $7 billion hit to the economy has been avoided this financial year alone. The challenge of climate change remains a dilemma for business but in many ways the overreliance on what was just a revenue raising measure gives a chance re-start the discussion. www.minerals.org.au
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Enhancing Australia’s prosperity through technological innovation The Australian Academy of Technological Sciences and Engineering (ATSE) ATSE is made up of some of Australia’s leading thinkers in technology and engineering. One of Australia’s four Learned Academies, it’s an eclectic group, drawn from academia, government, industry and research, with a single objective in mind – to apply technology in smart, strategic ways for our social, environmental and economic benefit. To achieve that goal, ATSE has formed a variety of expert, independent forums for discussion and action – platforms to move debate and public policy on issues concerning Australia’s future. These focus on energy, water, health, education, built environment and innovation – and the international collaboration necessary to ensure that Australia is abreast of world trends. It’s an open, transparent approach – one that government, industry and community leaders can trust for technology-led solutions to national and global challenges. Each year, the Australian Government recognises the importance of the work we do by awarding the Academy an establishment grant to help with: n Fostering research and scholarship in Australia’s technological sciences and engineering; n Providing and conducting administrative support, workshops, forums and similar events to enable the Academy and its Fellows to contribute on important national issues; n Managing the development and execution of our programs; and n Supporting relationships with international communities.
The Australian Academy of Technological Sciences and Engineering (ATSE) 1/1 Bowen Crescent Melbourne Victoria 3004 Australia +613/ (03) 9864 0900 info@atse.org.au www.atse.org.au
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A.M.S. Tugs & Barges
A.M.S. Tugs & Barges
A.M.S. Tugs & Barges Head Office 56
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10 Years of Towing
A.M.S. Tugs & Barges on a decade of business and fleet expansion A.M.S. Tugs & Barges MD Alan Yeo grew up in a successful family business involving Offshore Vessels more than 40 years ago in Singapore. Since then Alan has continued in the family’s footsteps when in 2004, he established an independent marine company in Perth. As a one-man show with limited start-up capital, Alan has moulded and built A.M.S. Tugs & Barges into a successful business. In this exclusive 10th anniversary piece, he discusses the growth his organisation is currently going through and some of their most significant projects.
Australian Business Executive: How did you get involved with ship broking? Alan Yeo: Upon establishing A.M.S., with limited resources and no funding, the only marine activity available was ship brokering, until the company had sufficient capital to acquire the first vessel. ABE: Tell us about the key markets that AMS provides services for. AY: A.M.S. Tugs & Barges offers a broad range
of marine related services to the booming coastal marine/offshore industry in Australia, as well as to the rest of the world. Being an accredited AS/NZS ISO 9001:2008 company, A.M.S. strives for continued service excellence in the provision of various tugboats and barges. We own/operate a growing fleet of highly specialised and quality marine vessels within the Oceania region and on the international level. To date, A.M.S. owns and operates a modern fleet of vessels comprising of Harbour/OceanGoing Workboats, Offshore Support/Supply Vessels, Anchor Handling Tugboats/Supply (AHT/S), Deck Cargo Ballast Tank Barges and Construction Spud Barges with an average vessel age of 18 months. A.M.S.’ focus has been in the Australasian region and over the years has maintained a prominent position as a leading provider of a wide variety of marine related services. We are not only capable of servicing Australasian clients, but international clients too. We have successfully participated in various projects involving coastal construction, offshore oil and gas transportation, offshore exploration and other marine related projects across the Australasian region. ABE: Alan you’re now celebrating 10 years of business success. Can you give us your thoughts on what you think has contributed to this? AY: Our philosophy is to always work with our clients at all times, and to provide them with vessels built with the highest quality, and provide them a service that results in customer satisfaction. To follow that up, A.M.S. corporate philosophy is, “To provide all clients with the most comprehensive services to meet all their marine support and logistics needs under the most equitable terms. We guarantee prompt, reliable and efficient services at all times.” ABE: You’ve recently expanded your fleet. How did this come about? 57
“A.M.S. has placed
orders for new vessels in anticipating the increasing demand of high spec’d vessels in the Australian marine industry.”
A.M.S. GLADSTONE - A 210ft Deck Cargo Ballast Tank Spud Barge in Brisbane (Newfarm Riverwalk Project). 58
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AY: We are in our fourth year of a 5 year expansion plan, to not only increase our fleet size, but also to renew our older vessels. This results in an average vessel age of 18 months. It ensures that we are able to offer to our clients reliable new vessels at all times. A.M.S. has placed orders for new vessels in anticipating the increasing demand of high spec’d vessels in the Australian marine industry. Our 2014-15 fleet expansion plans are the to-be-named A.M.S. 1806 (180ft x 60ft x 14ft Deck Cargo Ballast Tank Spud Barge), A.M.S. 1807 (180ft x 70ft x 14ft Deck Cargo Ballast Tank Barge), A.M.S. DAMPIER (210ft x 70ft x 14ft Deck Cargo Ballast Tank Automated Spud Barge); and A.M.S. AUSTRALIA (a 34m 3200bhp Ocean Going Anchor Handling Tug). They will be delivered into Australian waters around Q4 2014 to Q2 2015. ABE: AMS has been quite busy with some significant projects in both WA and Queensland. What can you tell us about them? AY: There are a number of projects we’re currently involved in. Let me detail a few for you. Cape Lambert WA - Heavy Cargo Transportation Works This was the very first landmark project our new generation barges A.M.S. PERTH and A.M.S. DARWIN have engaged in NWS since their delivery into Australia in May 2013. Both barges have assisted our logistics client with the transportation of heavy cargos/modules from ships coming in from Asia into Cape Lambert for an iron ore port expansion project in March 2014. Designed to carry a maximum cargo deadweight tonnage of 5,000—5,500 Tonnes with 20-25t/m² deck load rating; and equipped with Australian certified road transportable RoRo ramps (Hook-on type), both barges were the perfect candidates for such jobs within the vicinity. Furthermore, both barges are also equipped with removable hand rails and class approved internal hull reinforcement for the spud-keepers attachment.
“We are in our fourth year of a 5 year expansion plan ” A.M.S. believes that the accomplishment of this contract was a result of the success of A.M.S. HENDERSON. It’s our 2011 built 250ft Deck Cargo Ballast Tank Barge which has been a common sight over the past couple of years, where she was assisting in similar work scope for various landmark projects in the NWS. Port Hedland WA - Anderson Point Port Expansion Shortly after the completion of the project in Cape Lambert, A.M.S. DARWIN, our 230ft x 80ft x 16ft Deck Cargo Ballast Tank Barge, has won another contract to assist in the Anderson Point Port Expansion Project in Port Hedland, WA. Commenced in June 2014, A.M.S. DARWIN has joined the project team in Port Hedland and participated in the handling of the first shipment of pipelines arriving in a Heavy-lift vessel; where she has been storing the piles and berthing alongside a crane barge for the piling works. Her current contract is ending in mid-October 2014, with charterer’s option to extend the contract until mid/end November. Brisbane QLD - Newfarm Riverwalk Project A.M.S. GLADSTONE – our 210ft Deck Cargo Ballast Tank (Spud) Barge, together with one of our 180ft Deck Cargo Ballast Tank Barge A.M.S. 1803, had been on a long term commitment with the same client since their delivery in 2012. After successfully assisted in three of the client’s major projects (the APLNG, GLNG, and the QCLNG) in Gladstone, QLD; the Brisbane Newfarm Riverwalk Project was the fourth landmark project A.M.S. GLADSTONE has involved in over the Eastern States with this client. 59
A.M.S. Tugs & Barges
A.M.S. Team Located along the Brisbane River, the New Farm Riverwalk is one of Brisbane City Council’s key river connections between New Farm and Brisbane city centre. The completion of this project will add “Vitality” to the city of Brisbane and we at A.M.S. Tugs & Barges are thrilled to be a part of this. Gladstone QLD - Wiggins Island Project
At Nauta Marine Consultants Pty Ltd, our marine surveyors strive to provide marine surveying, consulting and appraisal services built on integrity, investigative skills, technical tools and solid work ethics while maintaining or exceeding the highest industry standards.
A.M.S. GLADSTONE, through the involvements in various landmark projects (APLNG, GLNG, QCLNG, and the Brisbane Riverwalk Project) over the couple of years, has generated extensive interest to the local construction companies due to her outstanding performance. As a result, A.M.S. GLADSTONE, before the end of her contract with her previous client, has won another contract to assist in a project located at Wiggins Islands, Gladstone QLD, commenced immediately after the completion of her project in Brisbane Newfarm Riverwalk Project. A.M.S. GLADSTONE is equipped with 4-point mooring systems (with 30T winches) and internal spud keepers; and has a deck load rating of 25t/m2 which allows her to carry up to 3,300T of cargo.
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Unit 25,45 Pakenham Street, Fremantle WA 6160 T: (08) 9321 3322 ■ F: (08) 6102 2512 E: admin@nauta.com.au ■ W: www.nauta.com.au 60
www.a-m-s.net.au
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Canadian Australian Chamber of Commerce A time to rediscover the similarities between our two nations By: Scott McClellan, Director CACC
At a recent Economic Leadership Forum in Melbourne, Prime Minister Tony Abbott drew on old war-time ties to demonstrate the bond that exists between Australia and Canada, a relationship too long taken for granted and inadequately nurtured. “On a wall in my offices, hangs a painting of a World War One battlefield near Vimy Ridge where Canadian and Australian soldiers had been comrades-in-arms,” he said. “In those days, it would have been taken for granted that Canadians and Australians should have gone into action together, as part of the British Empire’s armies in France. These days, despite a language in common, a shared Westminster parliamentary tradition, and a Queen of Canada who is also the Queen of Australia, we are not so often in each other’s thoughts. That should change.”
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Scott McClellan CACC Director 63
Canadian Australian Chamber of Commerce
By invoking Vimy Ridge, Mr. Abbott would have pushed a button with the Canadians in his audience. For most Canadians, Vimy Ridge is considered their crucible of nationhood, much the same way most Australians believe their own national identity was forged on the bloody beaches and hillsides of Gallipoli.
“Australians and Canadians should be more conscious not only of all that we have in common but of all the good that we might do together. So, my intention is to broaden and deepen the relationship between our two kindred countries.” Prime Minister Tony Abbott
“With two way investment at over $70 billion – and with Australian companies such as BHP playing an active role in Canada – the commercial relationship is in reasonable shape,” observed Mr. Abbott. “But there should be more to our friendship than money. The relationship is strong but under-developed even though we are as like-minded as any two countries can be. As the world’s tenth and twelfth largest economies, our two countries carry considerable clout. But despite inhabiting a very similar intellectual and cultural space, we are rarely as conscious as we should be of each other’s presence.” As economies dominated by resources and agriculture, it would be easy to see the two countries as commercial rivals in the global contest for new markets. And there have been skirmishes over the years: for example, a dispute over the import of Canadian salmon to Australia in the mid 90’s. It was not finally settled by the World Trade Organisation until 2000. 64
But conflict has been the exception, not the rule. A 2012 report for the Canadian Council of Chief Executives found that we have “highly similar economies in terms of size, wealth, governance systems, most observable socio-economic characteristics, resource endowments and specialization in international trade. To the extent that countries trade because they are different, this works as a disincentive to deepening trade relations.” Despite the shortage of trade in goods and services, the study found that bilateral investment had become a major feature of commerce between the two countries. Clearly there is high level of mutual trust and strong investor confidence on both sides: “Both Canada and Australia have global direct investment (FDI) stocks that are larger than annual global exports of goods and services. For Canada, in 2010, the stock of investment was 1.55 times the size of global exports of goods and services; for Australia, the comparable ratio was 1.31. However, in the bilateral relationship, these ratios are about an order of magnitude larger: for Canada the ratio of direct investment in Australia to its exports of goods and services to Australia in 2010 was 8.7; for Australia the comparable figure was 13.1. While foreign affiliate sales data are not available on a bilateral basis, applying the global average of a $1.67 in foreign affiliate sales for $1.00 in FDI, foreign affiliate sales in 2010 may be estimated at US$ 36 billion for Australian firms in Canada and US$ 25 billion for Canadian firms in Australia. Seen this way, the relationship suddenly looks neither small— US$ 65 billion in two-way trade plus foreign affiliate sales—nor lagging in growth.” The same report found that “there is room for further development of trade in various sectors of particular interest, including (in terms of Canada’s export interests) agricultural products; food and beverages; fish and seafood products; agricultural technology and equipment; forest products; metals, minerals and related equipment, and consumer products (including apparel and fashion); and (in terms of Australia’s export interests), environmental goods, mining and oil & gas technology, and wine.”
AustralianBusiness Executive.com.au
Jacques Demers, OMERS Lunch, Canadian Australian Chamber of Commerce The Canadian Australian Chamber of Commerce (CACC) has an important role to play in raising the level of ‘consciousness’ between the two countries. Its programs and networking events are designed to help grease the wheels of enterprise. Founded in 2005, CACC is a not-for-profit organisation whose focus is to build and strengthen trade and business connections between Australia and Canada. It hosts and cosponsors functions, events, cocktail receptions, trade delegations and presentations from business leaders and politicians from all major parties. CACC maintains relationships with senior and
operational level staff of Government in both countries, providing access to an extensive and growing network of individuals and organisations with an interest in the CanadaAustralia business relationship. Crucial to this endeavour is the generous support of sponsors such as Air Canada, RBC Capital Markets, Bombardier, Altus Page Kirkland, KPMG, CAE, Stikeman Elliott, Worley Parsons, and PriceWaterhouseCoopers . This support makes it possible for CACC to offer outstanding speakers at a fraction of the cost commercial event organisations might charge. Membership in CACC is open to all corporations, public sector bodies, educational 65
Building Business Connections: Bringing Canada and Australia Closer Together
For Membership Information and Upcoming Events www.cacc.com.au Corporate Sponsors
Corporate Members
Honorary Advisors
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Canada Day Reception 2014 institutions and other organisations who share our interest in promoting the development and expansion of bilateral trade, investment and commerce. But there are also membership opportunities for individuals looking to expand their own personal business networks. At just $220, Gold Membership provides ‘front of the queue’ access to networking functions as well as bigger speaker events throughout the year. And for those who simply wish to keep in touch with what’s going on, there is a ‘CACC Supporter’ category. Member to member benefits include special deals on airfares and accommodation. A recent coup was attracting Jack Cowin, founder of Hungry Jack’s and a distinguished Canadian/Australian, as a patron of the Chamber. Since opening his first store in a suburb of Perth in 1971 after emigrating to Australia from Canada, Mr. Cowin has come to preside over a franchise empire boasting more than 340 locations across Australia. As a patron of CACC, Mr. Cowin will provide valuable guidance to the Board and the benefit of one of our countries’ most astute business minds. The CACC Board itself has recently undergone significant renewal, with the appointment of several new directors who bring a wealth of business and not for profit organisation management skills to the organisation. New faces include Ross Campbell, the co-
founder of the MBO Group, a boutique advisory firm specialising in assisting private companies. Mike McGrath is a Managing Partner, Clients, Industries and Markets with PricewaterhouseCoopers and is based in Melbourne. Scott McClellan, former CEO of the Australian Association of National Advertisers, runs an association management consultancy based in Sydney, and Brian Hansen is managing partner of Stikeman Elliott Sydney. Longer-serving directors include: Dominic Hudson, Managing Director of RBC Capital Markets Asia Pacific; Nathan Seidl, a political consultant and airline pilot based in Sydney; Greg McNab, a Partner in Baker & McKenzie based in Toronto; and Executive Director John Secker, former Country Head of the Royal Bank of Canada for Australia and New Zealand and is based in Sydney.
“Over the years, CACC has forged a close relationship with the Australian Trade Commission (Austrade) ” A key figure in the founding of the Chamber was Richard Kohler, Governor Emeritus, a specialist in trade and economic issues who spent more than three decades serving in Canada’s Foreign Service, including in Sydney. 67
Canadian Australian Chamber of Commerce
Mark Wiseman speaking at a recent CACC event Over the years, CACC has forged a close relationship with the Australian Trade Commission (Austrade), the agency tasked with helping Australian business succeed in overseas markets. Austrade has identified several areas of mutual interest for Australia and Canada to pursue. These include biotechnology, resources, finance, IT, education, and agriculture. This information helps CACC plan its events and other activities in the knowledge that its work is closely aligned with government and business priorities. Chamber supporters can expect the events program in the coming year to leverage these 68
sectors for topics and guest speakers. CACC also cultivates its network of important contacts in government. The Chamber has a practice of extends Honorary Gold Memberships to senior Canadian and Australian government officials who are actively engaged with promoting trade and investment flows between the two countries. The Canadian Consul General in Sydney enjoys such a membership as do the Canadian High Commissioner to Australia and the Australian High Commissioner to Canada, as well as the Australian Senior Trade Commissioner in Toronto. The Chamber is also an enthusiastic supporter
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of the Australian Canadian Economic Leadership Forum, a gathering of business and political leaders of our two countries that has occurred every two years since 2010. The 2014 Forum in Melbourne featured topics including: the global economy and finance; international trade; foreign direct investment; infrastructure development; arts, culture and business; security issues in Asia Pacific; and innovation and opportunities in the mining and energy sectors. Forum Co-Chairs, Thomas d’Aquino and Heather Ridout, along with the Organising Committee, created an exciting program with 49 distinguished private and public sector leaders for a dynamic and interactive exchange of ideas and experiences. The final communique read, in part: “A recurring theme at the conference, coming as it did after the G-20 meeting, was the challenge of stimulating more economic growth in the two countries and in the world economy. A particular challenge for Australia and Canada in this context is that governments are either running deficits or have barely balanced the budget whereas the private sectors have a great deal of money that is not yet being invested. The fiscal challenge facing both countries occurs as populations are aging, with implications for higher health-care costs and fewer people in the workforce. Therefore, speakers emphasized that governments needed to keep taxes low, and preferably to lower them, and to find other ways of stimulating private sector investment. These include securing bilateral trade agreements, such as Australia has recently accomplished with Korea and Canada with the European Union. Additionally, economic growth would be helped by pushing multilateral trade agreements to successful conclusions, such as the Trans-Pacific Partnership in which Australia and Canada are both participants. No participants seemed optimistic about early progress in the Doha Round of multilateral trade negotiations.” The next Forum is planned for Canada the summer of 2015.
Jack Cowin Founder of the Hungry Jack’s franchise and Canadian/Australian
“My intention is to broaden and deepen the relationship between our two kindred countries ” Scott McClellan
There is plenty of room for optimism about the future of commercial ties. Canada’s Exporter Registry shows that the number of companies exporting to Australia grew from 2,161 in 2003 to over 3000 in 2013 with Austrade reporting about 2,000 companies trading in the direction of Canada. As Mr. Abbott has said: “Australians and Canadians should be more conscious not only of all that we have in common but of all the good that we might do together. So, my intention is to broaden and deepen the relationship between our two kindred countries. Just as my office rescued the Vimy Ridge painting from a public service storeroom where it had been languishing until just a couple of months ago!” www.cacc.com.au
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FOOTBALL QUEENSLAND The Continued Growth of Australian Soccer An Interview with Football Queensland CEO Geoff Foster By J. Landry
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Geoff Foster, CEO
After all, it is nowhere written that parents can’t enjoy their involvement. That attitude earned me the Presidency of the Club, followed by the Presidency of the Sunshine Coast zone, then the Presidency of Football Queensland. It’s absolutely amazing as I never held aspirations to occupy any of these rolls. JL: How would you describe the objectives of Football Queensland?
GF: Football Queensland manages both community football in Queensland and administers the advanced player pathway which identifies and develops those athletes who hope to make a career in football. Participants and players include men, women, juniors, older With a large family that includes three adults and disabled participants involved in all sons and a daughter, and a grandfather aspects of the game including indoor (Futsal), to five granddaughters and a grandson, schools, church and beach football, and he’s had a long association with the game football played in indigenous and remote areas. through his kin. When originally getting his In this environment we aim to: kids into football, he was surprised at the negativity of the parenting and coaching in 1. Ensure our governance, administrative and the sport, leading to his involvement and operational infrastructure is appropriate for eventual ascension to its highest position delivery of quality competitions and services to in the state. the Football Family in Queensland; As a trained accountant who spent most of his working life in manufacturing, it’s been an unexpected journey for Geoff Foster, CEO of Football Queensland.
Geoff takes time out of his busy day to discuss the unique challenges of managing such a large state, the benefits of the sport, and corporate opportunities to support its growth.
2. Recruit and retain players by introducing innovative programs to meet the needs of a growing time poor society, whist maintaining core participation in traditional football;
J. Landry: How did you get involved in Football Queensland?
3. Support grassroots participants with competition structures, education and new football experiences including CALD, socially disadvantaged and indigenous;
Geoff Foster: Life deals some unusual cards and after spending my first thirty years in Melbourne, my father in law (then residing in Maroochydore) was diagnosed with cancer so the family relocated to nurse him through that illness. Sadly, he died only days after my arrival early in June and having sold our home and business in Melbourne, we decided to stay for a holiday and never returned. At the end of the street of my father in laws home was a soccer field so my eldest boys decided to give it a go. I was surprised by the negative approach by the parents at the club so decided to inject a bit of fun into the game.
4. Provide an affordable pathway and increased opportunities for players to compete to their potential at an elite level; and 5. Embrace technology to provide common systems, improved communications and research & analysis to support the contribution of our volunteer network. JL: What are some of the unique challenges the organisation faces? GF: Certainly making football and development pathways available to a majority of the 71
Football Queensland
Aiding youth development in Queensland - one of the Squirts teams having fun population of Australia’s second largest state (an area of 1,727,000 square kilometres) where more than half of the population lives outside the greater metropolitan area of Brisbane (a large proportion compared with the rest of highly urbanised Australia) has its challenges. I often say to my Southern colleagues that they wouldn’t expect us to conduct a competition in Melbourne from our Brisbane office yet it is expected we manage leagues in Weipa or Cairns, which in distance is further. JL: How would you describe the Socceroos performance at World Cup? GF: I was so proud of the team and the coach. The group was pulled together with limited time to prepare yet they were audacious enough to believe they could win. When we went ahead of The Netherlands, most of Australia also dared to share the team’s belief in itself. It was a very special tournament where the boys showed they can compete against the best the world can throw at them. JL: And what about the upcoming Asia Cup? GF: Australia is only now beginning to understand the opportunities that come with hosting the Asia Cup. Football Queensland is supporting FFA locally to make the event something special in Brisbane. We are very fortunate to be hosting the best games and it 72
is generally acknowledged we have the best draw. This is Asia’s biggest football tournament and ticket sales in Brisbane are well ahead of budget. Of course it leaves a legacy of improved stadia which will be enjoyed for decades by our community football clubs. JL: So what does this mean when it comes to interaction with the Asian Community? GF: As part of our promotion of the games, we are engaging and talking with groups we didn’t know existed. The Japanese Football Association, the Koreans, Iraqis and of course the CALD groups are alive and active and playing football. Sport is a very powerful circuit breaker and we expect that we can come together for the benefit of both sport and community. JL: Can you tell us about the recently established National Premier League? GF: This FFA initiative brings National consistency to the way each Member Federation conduct their highest level competition. It is a nursery for developing athletes and provides the shop window for clubs participating in the A-League to develop their own players and identify players from across the State. The focus is to develop coaches to the highest standard so that they are well positioned to bring out the best technically in our athletes. Football Queensland
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is very proud of our record to develop players across both genders and we boast that we punch above our weight in providing men and women to the next tier, and indeed to our National teams. JL: What do think are the key benefits of football? GF: There’s many. Firstly, there’s the youth. Although the media focus on the most talented of our players, it is the other 98% who occupy our energies. Having four children myself and watching their participation and the friendships they made, I will be eternally grateful to the sport. Whilst we watched friends of my children getting into all sorts of trouble with drugs and other anti-social behaviour, as a family we were spared those challenges. Secondly, we make a great effort to introduce education initiatives. Football Queensland recognises the conflict between school and sport. The team coach demands training time while the academics insist on learning time. We participated in a great pilot program at Kawana College on the Sunshine Coast where years eleven and twelve were spread over three
years and included in curriculum sports time. It is a great success which we hope to trial in other areas. Of course it is widely recognised that healthy body and healthy minds go hand in hand, and we need to share that with the community. Thirdly, there’s the ethnic make-up. As I said earlier sport is a wonderful circuit breaker to cultural, language and social barriers. The Asia Cup is forcing interaction in our sporting community which should see a legacy of cooperation and better understanding. JL: How many participants does the organisation have? GF: Football Queensland has over seventy thousand players registered in our traditional winter leagues and another almost ten thousand volunteers acting as officials, club managers and coaches. We are moving to a less regulated social environment which allows football to be played indoor and outdoor without the commitment to train. We have today launched Summer 6’s which is an affordable fun way to keep fit with a ball at your toes. We see this as the area of greatest opportunity for the game. JL: What corporate opportunities exist for companies who may wish to get involved? GF: Sport brings out the loyalty in people. To your team and your club, there is a stronger sense commitment than in general life engaging with professional associations. Under my stewardship, we have enjoyed fantastic relationships with various partners but the standouts would be NSR Australia, Hyundai, NAB and Schweppes. Those relationships have spanned many years. I constantly remind our stakeholders and staff that for any relationship to stand the test of time, it must be mutually beneficial and we have a very real obligation to our partners. That philosophy has served us well but as we venture into new headquarters and introduce new products, there are many opportunities for us to grow the livery.
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www.footballqueensland.com.au 73
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