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PROPERTY RULES BUYING A FAMILY HOME TOPS YEAR’S LIST FOR SPENDING MONEY
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‘Tradition’ loses workplace talent PROFESSIONAL women in their 30s are opting out of full-time work at an alarmingly high rate. Only 38 per cent of Generation X, tertiary qualified women participating in a long-running University of Melbourne study work full-time, compared to 90 per cent of Generation X, tertiary qualified men. The findings are among the latest to emerge from Life Patterns, Australia’s longest running study of the lives of young people. Professor Johanna Wyn, Director of the Melbourne Graduate School of Education’s Youth Research Centre, blames Australia’s lack of familyfriendly workplace policies for the low participation rates of highly qualified women in the workforce. “When we started this study in the early 90s, young women who had gained tertiary qualifications were the
most likely of any social group to put the highest priority on gaining a career position. If we fast-forward to 2010, the majority of these same women are no longer participating in the workforce. Indeed, full-time employment for women, 13 years after leaving secondary school, is inversely related to level of educational qualifications. “While our young women are encouraged to excel academically, when it’s time to start a family, there is very little support available from employers and more traditional attitudes to gender roles seem to prevail. So unfortunately, we find our workforce losing huge numbers of talented individuals.” These findings are in the new book: The Making of a Generation: the children of the 1970s in adulthood, by Professor Wyn and University of British Columbia’s Professor Lesley Andres.
BusinessTimes Greater Dandenong ISSUE 2 / SEPTEMBER 2010 TONY MURRELL KEITH PLATT MARG HARRISON JACK HOEKSEMA DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT
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The business of better business Performance Management and Dismissals Gail practical hints and tips to ensure you are on the front foot in managing the complex issues of performance management and dismissals in the new legislative environment. 2 hours FREE VECCI Members Non Members $25 Dandenong 14 October 2010 Glen Waverley 3 November 2010
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Business Owners/Senior Managers and Personal Criminal Liability Understand your personal OHS responsibilities and liabilities and avoid exposing yourself to a possible criminal conviction. 2 hours FREE to VECCI Members Non Members $25 Dandenong 10 November 2010 Glen Waverley 6 October & 1 December 2010 Workers’ Compensation - Taking Control Take control of your compensation claims and reduce your reliance on third parties. FREE to VECCI Members Non Members $25 Dandenong 27 October 2010 Glen Waverley 22 September 2010 & 22 November 2010
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FAST FORWARD - Networking with a twist VECCI’s newest event series - Meet quality contacts in Dandenong. Book now to avoid disappointment. When: Thursday 16 September 2010 Location: Chifley Doveton Address: Cnr Doveton & Princes Hwy, Doveton Time: 5.30pm – 8pm VECCI Member: $44 Non Member: $48 Includes canapés and beverages. Places are limited, so visit vecci.org.au or call 03 8662 5333
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Industrial Relations - Workplace Relations
CONTENTS SEPTEMBER 2010
Features
06 08 10
Property rules:
Buying a family home tops spend list
West Access
Bridge take motorists to city centre
Ethical approach GAIA smoothes its way to success
DANDENONG’S new signature bridge is about to get a permanent name Known as the George St Bridge during construction, the $29.5 million structure’s name will be chosen from the more than 100 submissions received after VicUrban called for suggestions. Now culled down to three - Stockman Bridge, Gateway Bridge and Drovers Bridge - the successful suggestion will be announced next month, when the bridge opens to traffic. VicUrban’s communications manager - industry and stakeholders Michael Horkings said the names “reflect common themes put forward by the community and they acknowledge the historic and future function of the site”.
Busy Bites News Contributions Awards night Networking
Columns 6 8 15 20 23
Managing: Hamish Petrie Markets: Richard Campbell Motoring: Ewen Kennedy Health: Mike Ellis
18 19 21 22 Cover : Michelle and Simon Vigrinic run a business based on their love for natural skin treatments and organic ingredients.
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NEWS
Blooming in business after a life in football WHEN Melbourne champion Robert Flower walked off the MCG for the last time as a player in 1987 he had played 272 games for the Demons and had been club captain for seven years. His honours included being named captain of the state team and also as a member of Melbourne’s team of the 20th Century. His last three games were in the 1987 finals series, the only time he played finals football. Flower had a sporting career that could have been reflected upon and relived over and over for the rest of his days. But this Flower was set to bloom in other ways and his mantra remains the same as it was at the end of his footballing 23 years ago: Life goes on - enjoy it! This was Flower’s theme when he addressed nearly 200 people at Casey Business Forum’s 2010 Business Awards on July 28. Flower has fashioned for himself three successful careers since footy, but sport has never been far away. He was a co-founder and director of the successful Sportsco store and helped set up the successful franchise that has seen the brand grow to 130 stores Australia-wide. Flower’s first Sportsco store was in Cranbourne. He followed up by establishing the Registered Training Organisation that developed training courses in sport,
Robert Flower and Julie Bielenberg, chairperson of Casey Business Forum.
engineering and hospitality, a business he sold in 2005. Today Flower is a director of Sports Education and Development Australia (SEDA), started in 2006 as a provider of senior secondary education and training in partnership with schools. This year 800 students are in training and the number could grow to 1200 next year. Flower said that early in his business life he saw the need to train people to have better skills on the sales floor. Having people with the right expertise in the right place will help to grow and develop a business, Flower said. The former Melbourne champion has successfully overcome prostate cancer in recent times and gives every man the same spiel, regardless of age: “Go get checked out by the doctors.” He said he lives a fulfilled life because he took action on his health. The Casey awards involved 83 businesses in nine categories:
Home Based Business of the Year: • Day Spa Parties • EcoFuture Pty Ltd • Eurostyle Timber Floors Small Independent Retailer of the Year • Be Your Best Physiotherapy • Fields of Fairies • Framing to a T Picture Framers & Designers • Paul Worsteling’s Tackleworld Cranbourne Agriculture & Primary Industries of the Year • Favero Gardens • Freni & Doria Vegetable Growers Pty Ltd • Oasis Horticulture New Business of the Year • Full Circle Health Management Pty Ltd • Eightyone Fine Food & Wine • Travel Managers Manufacturer of the Year • Australian Solar Manufacturing Pty Ltd • Back to Earth Australia Pty Ltd • Successful Endeavours Pty Ltd Food, Wine & Hospitality of the Year • 1884 The Courthouse • Eightyone Fine Food & Wine • Margo’s Fine Chocolates & Café • Shanika’s Berwick Business & Professional Services of the Year • Arabi Pty Ltd trading as A Better Dental Care • St John of God Hospital Berwick • Successful Endeavours • Travel Managers Trades & Construction of the Year • Banks Pty Ltd • Botanic Homes • Eurostyle Timber Floors Franchise of the Year • Mortgage Choice Berwick • Quest Narre Warren Serviced Apartments • Telechoice Fountain Gate
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BUSY BiTES
Dispute resolution The Australian International Disputes Centre (AIDC opened on August 3 gave companies a dedicated facility to resolve commercial disputes quickly and fairly, according to heather Ridout, of the Australian Industry Group. Ridout said a reality of commercial life was that disputes occurred and Alternative Dispute Resolution was a cost effective substitute for litigation. “The centre will be an important domestic and international facility at a great time for Australian and regional businesses,” Ridout said.
Record trips AusTRAlIAn residents made a record 6.8 million short-term trips overseas in 2009-10, according to the latest figures from the Australian Bureau of statistics. This is up from 5.8 million trips in 2008-09, and more than double the trips 10 years ago. The most popular destination for Australian residents going overseas on short-term trips (less than a year) was new Zealand, with more than a million movements across the Tasman occurring in the last financial year. The next most popular destinations were: • Indonesia (650,000 trips) • usA (630,000), • uK (460,000) and • Thailand (430,000). These top five destinations alone, accounted for just under half of all short-term resident departures for the year. The most frequently cited reason for journey was holiday, contributing 55 per cent of all short-term resident departures. Other common reasons were visiting friends and relatives (24 per cent) and business (11 per cent). During the 2009–10 period, Australian residents on short-term trips revealed that their average time overseas was 15 days.
Victorians prefer property, then a holiday… shares are last
FORGET shares: buying a new home is set to be the biggest spend for Victorian consumers this financial year, the Homeloans Homebuyer Barometer has revealed. And the second biggest spend? Renovations and holidays. Shares are last on the list. According to latest research by mortgage provider Homeloans Ltd, 26 per cent of Victorian respondents said a new home would be their largest outlay in the 2010/2011 financial year. That’s ahead of Queensland (23 per cent) and South Australia (18 per cent), but behind Western Australia (27 per cent) and New South Wales (29 per cent). “Findings from the Homebuyer Barometer confirm that Victorians’ passion for property continues to outstrip other major purchases,” says Will Keall, Homeloans’ marketing manager. “Bricks and mortar investment is obviously a permanent fixture on the must-have list of Victorian residents. Shares, on the other hand,
were pretty lacklustre, with only five per cent of respondents saying they would be their biggest spend this financial year.” In equal second place for Victorian residents are a holiday and renovations/extensions (18 per cent respectively). This was followed by a new car (16 per cent), other property (14 per cent) and shares (five per cent). When asked to list the greatest financial concerns for the 2010/2011 financial year, rising interest rates led the list among respondents from all surveyed states. In Victoria, more than a quarter (31 per cent) of respondents ranked rising rates as their biggest concern, on par with Queensland, also at 31 per cent. South Australian respondents held the biggest fears overall about interest rate increases (35 per cent), followed by NSW and Western Australia (32 per cent respectively). Increased living expenses was the second biggest financial concern for 25 per cent of Victorian respondents. Of the different age groups, those aged over 60 (43 per cent) and 50-60 (33 per cent) were most concerned about the cost of living. For those 25 and younger, rising interest rates far outstripped the cost of living as the greatest worry (31 per cent versus 18 per cent). Next on Victorians’ list of financial concerns were: increasing property prices (10 per cent) and job security (nine per cent); costs associated with raising a family (seven per cent). A mere seven per cent of Victorian respondents ‘have no financial concerns’ for the 2010/2011 financial year.
Retail figures reflect GFC ‘hangover’ - ANRA RETAIL growth of only 0.2 per cent in June was disappointing and pointed to tough times for retail as it climbs out of the crater left by the global financial crisis, according Australian National Retailers Association (ANRA) CEO Margy Osmond. “Clearly the stimulus package in 2009 made for strong sales in difficult times. However, the good times of early last year have been followed by the sluggish growth and the hangover retail is suffering now. We are still some way from the Berocca kicking in for the retail sector,” Osmond said. While retail figures have increased consistently in the past four months, for the first time in two years, the growth is slow and the sector does not look like
6 | BusinessTimes Greater Dandenong | September 2010
making significant recovery until well into 2011. June figures were expected to be higher, with no interest rate rises in the month, and the traditional sales season. The non-stop sales of the past six months may also have impacted on the June spend. “We know from the ANRA/AMEX survey, released early August, that Australians with a mortgage are delaying purchases or waiting for sales and that’s likely to get worse in the next six months. “Of the 1000 people interviewed in our survey 24 per cent of respondents had delayed purchases of items costing over $500 and in the next six months 47 per cent of the same group anticipated interest rates making an impact on their spending choices.”
Savings suffer as debt rises THE Finance Sector Union has renewed calls for banking regulation as ING Direct’s new quarterly Financial Wellbeing Index showed that Australian households are under increasing pressure to get personal debt under control. The FSU claims that banks actively engage in marketing and sales strategies that pressure their workers to promote credit cards, lines of credit and other debt products onto customers. FSU national secretary Leon Carter said that balance between the public interest and banks’
pursuit of profits must be redressed. “The fact that banks engage in debt-pushing practices at such a significant rate, on top of exceeding RBA interest rate rises, charging interest upon interest and fee gouging are all practices that impact severely on Australian households and personal debt levels,” Carter said. “The ING Direct’s Quarterly Financial Wellbeing Index shows that savings are depleted by the need to repay debt, with 31 per cent of households ‘very uncomfortable’ about their personal savings,” Mr Carter said. He said government had a responsibility to regulate banks engaging in practices that saw Australian debt levels skyrocketing. FSU says its Better Banking Charter seeks regulation of: • Off-shoring of bank jobs where sensitive personal data is handled • Use of debt sales targets as a performance measure • Interest rate movements outside Reserve Bank parameters • Control of short-term measures for bonuses for senior executives; and • Tighter controls of bank fees
Higher super ‘a no-brainer’ THREE out of four Australians support a rise to 12 per cent super and estimate they need a retirement income of $40,000 or more. And one in two (56 per cent) say they would be happy to pay for the rise out of their wages, according to a poll by the Australian Institute of Superannuation Trustees (AIST), the peak body for the $450 billion not-for-profit super sector. The Newspoll in early June suggested most working Australians recognised that their current level of compulsory super contributions was nowhere near enough to provide them with a decent retirement income. Just over 70 per cent of workers interviewed said they would need an annual income of at least $40,000 in retirement, with almost half saying they would need at least $50,000. AIST estimates that increasing the Super Guarantee (SG) to 12 per cent could see the retirement income of an average wage earner of at least $ 40,000 a year, significantly higher than their estimated income if the SG were to remain at nine per cent. AIST CEO Fiona Reynolds said it was clear that most Australians understood that nine per cent compulsory super was not enough.
Highway apartments A FOuR-storey building containing 50 two-bedroom apartments will replace single storey dwellings at 473-475 Princes highway, noble Park. Greater Dandenong Council has approved a planning application from Coomes Planning for the redevelopment on Residential 1 zoned land, opposite hannaprint Victoria. Objections related to a negative impact on neighbourhood character, overdevelopment of the land, inappropriate reduction of on-site car parking and excessive visual bulk.
City facts ResIDenTIAl, commercial and industrial building investments measured by value of building permits in Greater Dandenong throughout 2009-2010 included 400 residential permits at a total of $173,559,569 and 400 commercial / industrial permits equalling $473,376,512. The total value of permits for this financial year was $646,936,081. • 36,645 megalitres of drinking water was used as sports ground irrigation. • There were 1,092,044 visits in person or via the web to Greater Dandenong’s two libraries.
Knockback
“Twelve per cent is a no-brainer. The government supports it, the people want it and – with our ageing population – the nation needs it. Importantly an extra three per cent super will mean older Australians will be less reliant on the age pension in the future and better equipped to enjoy their retirement,” Ms Reynolds said. AIST is the peak industry body for the $450 billion not-for-profit super sector which includes industry, corporate and public sector funds covering the super interests of nearly two-thirds of the Australian workforce.
GReATeR Dandenong Council has knocked back a planning permit for a five-storey multi-use development at 16-18 Windsor Av, springvale. Council officers stated that the plan faltered because a licensed 70-seat restaurant and a convenience store was included in the development. Also planned was a medical centre and 27 dwellings. The developer wanted a reduction in the number of on-site car parks and a waiver on the planning requirement for a loading bay to service the restaurant and shop. Cr Youhorn Chea moved and Cr Yvonne herring seconded the motion to refuse the application.
September 2010 | Greater Dandenong BusinessTimes | 7
NEWS
Bridge to city’s centre stage
DANDENONG gets a new entrance from the west in October with the opening of a bridge connecting Cheltenham Rd to George and Walker streets. The $29.5 million bridge is a major part of the Victorian Government’s $290 million plan to revitalise central Dandenong. The new link and a realignment of George St to enable a “smooth flow” of traffic into Walker St will benefit businesses operating in central Dandenong, according to VicUrban’s development director, Michael King. The upgraded George and Walker streets will feature: • A bicycle path. • Priority bus lanes during peak hours. • Granite footpaths. • Three new signalised intersections (Cadle St, Mason St and Thomas St). • Improved lighting. • Planting of 55 jeffersred autumn blaze trees. Mr King predicted the western entrance would help attract more people and increase business activity to a previously underutilised area. “The need for a new western entrance
was identified in the community-backed Revitalising Central Dandenong Urban Master Plan,” Mr King said. “The bridge and significantly improved road network will eliminate the confusing and indirect route that discouraged people travelling across the train tracks into central Dandenong. “Commuters using the western entrance will become potential customers for new and existing businesses, sparking fresh building activity on underutilised land.” Much of the revitalisation plan is centre on seven hectares of land bought by VicUrban, including a parcel that runs south from Walker St to Foster St. The first development on this land is the Government Services Building being built at the corner of Thomas and Walker Streets. The building, due to be completed in late 2011, will have 14,400 square metres of lettable area, including offices and eight ground floor shops. Over the next 15 to 20 years the Revitalising Central Dandenong plan aims to attract more than $1 billion of private investment, the building of 4000 homes and creation of 5000 jobs.
8 | BusinessTimes Greater Dandenong | September 2010
Council gearing up for election public transport lobby GREATER Dandenong council is promising to pressure and lobby the state government in this election year for improved public transport Engineering services director Bruce Rendall said council shared residents’ concerns about public transport, especially along Princes Highway. Resident Elizabeth Nakos, of Noble Park, asked at an August council meeting what the council was doing about “the poor public transport on the Princes Highway as we only have one bus service that stops at 7pm?” Rendall said: “We get involved with the Department of Transport and other studies that happen and it can be very disappointing at times such as a recent bus review where it addressed concerns in neighbouring council’s but it did not address any of ours.”
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Welcome for ALDI A TOUR of the new $140 million ALDI warehouse and distribution centre in Dandenong South was an eye-opener for Greater Dandenong mayor Jim Memeti “This warehouse is one of the largest ALDI facilities in the world and will service 38 ALDI stores by the end of this year, creating over 140 new jobs,” Cr Memiti told an August meeting of council. “We’d like to welcome the ALDI team to our city and congratulate them on their expansion.”
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Ethical approach smoothes GAIA’s way to success The white board facing Michelle Vigrinic could hold the key to the future. Hand written notes on the board are product suggestions and ideas that may spawn the next big thing for GAIA Skin Naturals, the company run by Vigrinic and her partner in business and in life, Simon. WORDS/IMAGES: KEITH PLATT
M
ichelle is managing director and Simon marketing director of the company that grew from a mother’s desire to seek an alternative to mainstream treatment for her young son’s eczema. The couple was already well steeped in the “natural and organic” approach to life so there was no great difficulty in Michelle’s knowing where to look for ingredients that would solve her son’s irritation without resorting to prescription drugs. “We lived on an organic farm and were used to herbal infusions and what the doctors were offering was Cortisone. I didn’t have too many options.” The history of what happened next is well documented on the GAIA website: young Josh’s eczema was cured with a preparation made by his mother, other mothers were seeking similar “natural” cures for their families and the Vigrinics spotted a gap in the market. Michelle’s office above the warehouse and rooms containing packaging machinery in Hallam at first seems dimly lit. In fact, the reception area off the car park is almost dark. A desire to minimise the company’s carbon footprint is part of the Vigrinic home grown ethos that has been transplanted into the company and is propelling it forward. Michelle sits at a desk illuminated by a skylight and surrounded by shelves filled with plastic product bottles of GAIA’s 35 product lines, including those for men and pregnant women, and a variety of teddies, 10 | BusinessTimes Greater Dandenong | September 2010
“Our key to success is being extra customer focussed. We’re not just here for the quick dollar.”
all made with organic cotton. Opposite, is the ever present white board, in line of sight just above her computer screen. Many of GAIA’s 19 full time and part time staff have been with the company since its beginnings and are encouraged to scribble their thoughts about products on Michelle’s white board. “We have a big belief that one person can make a difference.” After making that first product out of necessity, Michelle realised the need for a range of chemical-free, natural baby products. Since opening for business in 2002 GAIA has grown into the highest selling brand of natural baby skin care products in Australia. The Hallam factory is the third move for the company after outgrowing each of its former premises. The Vigrinics are now eyeing another bigger premises next door. The biggest surge in sales came as soon as GAIA’s “well packaged, well priced” products hit supermarket shelves. “They [the supermarkets] came to us four years ago and now we’re exporting to 18 countries, including the UK, Canada, China, Italy, Russia and Turkey,” Michelle says. “We have a really good website where
people looking for organic, natural skin care for babies can buy from our online store.” The international and national sales and demand are a far cry from the Gembrook farm where the Vigrinics were making infusions from home grown herbs to sell at a farmers’ market. But with five signature products attracting attention they decided to go commercial. “We found a biochemist, decided against being a cottage industry and went straight to commercial production,” says Michelle. “Our goal was to work part time and raise our kids.” The husband/wife business partnership also seemed natural, with hairdresser Simon’s knowledge of skin and hair products and marketing background another essential GAIA ingredient. In 1999 the couple hired a consultant goal-setting motivator to help them with a business plan. He remains part of the company along with a board of advisors which meets quarterly to review logistics and finances. “They give us the right advice, seeing our strengths, weaknesses and where we are lacking.” A recent offshoot is the manufacture of plastic sachets used to promote GAIA products, a previously expensive marketing exercise. Knowing how hard and costly it was to have sachets made has opened up a new opportunity for GAIA which now will make smaller orders of sachets for other manufacturers. The only GAIA product made overseas is range of moisturised wipes. “They’re made in China from bamboo because Australia doesn’t have the technology.” The wipes will breakdown in the environment within 14 days and the solution with which they are impregnated is made from “natural, organic extracts”. At the other end of the scale, Michelle still makes products at home and later
September 2010 | Greater Dandenong BusinessTimes | 11
feature
products have] ingredients that cause irritation and so we have a list of things we won’t use. We’re on the side of caution.” Michelle stresses that no GAIA products are tested on animals. “We’re using ingredients tested and used for centuries - camomile, lavender, primrose and vegetable oils - which are good for the skin, good for the brain. “Just because products are made from natural ingredients doesn’t mean some people won’t have a [adverse] reaction, but there is less chance if they are organic. “There are no petrochemical products and we verify where everything comes from. If we use use palm oil, it’s from sustainable plantations where there is no ongoing destruction of forests or villages.” Shea butter is bought ‘fair trade’ from Ghana. “Here in the factory we use as few lights as possible, have recycled paper and encourage our staff to fill their water
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bottles with tap water.” On the drawing board is a chest rub for babies based on a vegetable balm rather than mineral oil; sunscreens are being investigated. Michelle is pleased to see major companies moving towards using natural products: “Whether it’s clever marketing or really a belief, at the end of the day it works towards the same outcome that we are seeking.”
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takes them to one of the “army of biochemists” contracted to GAIA. The home-based work ethic was instilled in Michelle by her mother who she still recalls using bicarbonate of soda and other natural products around the house. “My husband’s family are from Slovenia and are fairly spiritual. In Australia often the first reaction [to an illness] is to take a pill, but over there they look first at causes. “We also try to get people to go back to the source and find a cause. This all goes back to the cortisone prescription. Mothers are so overwhelmed and no one gives you options. “I’ve always been one to explore. I’ve never taken a drug in my life, always treating homeopathically, drinking ginger and herbal teas. “We live that lifestyle and wanted to encourage parents to use our products without worrying. A lot of [skin care
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CONTRIBUTIONS
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Bank offers a helping hand WITH more than 8000 businesses in the Greater Dandenong region alone, south-east Melbourne is a thriving business hub. It is also home to many of Victoria’s most successful manufacturers, generating more than 40 per cent of the state’s manufacturing output. But being a manufacturer in Australia is not always easy, especially when the company is also an importer or exporter. “It’s a pretty challenging environment right now,” Malcolm Bull, Commonwealth Bank executive manager of corporate financial services for the south east, said. “As well as low-cost offshore competitors and a patchy world market, you’ve got volatile exchange rates and rising input costs. Mr Bull said the Commonwealth Bank had business centres in Dandenong, Braeside and Mornington and “specialists on the ground throughout the south-east”. “We have specialists in transaction
Bank men: relationship manager Onsi Toruan, regional executive southern Victoria Malcolm Bull and relationship manager corporate Leigh Bramhall.
banking, trade finance and receivables finance, so we can quickly understand each businesses individual situation and create customised solutions to match. “We specialise in helping businesses manage their working capital across the manufacturing and sales cycle.” To contact a Commonwealth Bank business specialist call Onsi Toruan on 9794 1874 or Leigh Bramhall, 9794 1894.
FLINDERS Partners Group Accountants and Advisors has become a Mornington Peninsula institution over 30 years in Frankston. It provides services to clients in the Dandenong, Hallam and Frankston localities and, with the help of technology, throughout Australia and overseas. Partner Allan Williams said the focus is on up-to-date professional, tailored advice. “Flinders Partners’ team works with clients over the long term to help them achieve their ambitions and navigate through complex issues. We are proud that many of the individuals, families and businesses have been with us from the beginning,” Mr Williams said. The firm has four Partners and 20 staff. “Our size means that we can provide a level of expertise that people often travel to the city for, while still offering personalised service. The business has a fee-for-service financial planning division. The practice holds its own Australian Financial Services Licence.”
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CONTRIBUTIONS
‘Unfair’ insurance taxes THE National Insurance Broking Association (NIBA) has been campaigning against “unfair” insurance taxes for Victoria and NSW. The NIBA website points out that Victoria and NSW are the highest taxed
Workforce development
with non-insurance and underinsurance. Kerr said business leaders feeling strongly about the issue, should contact state or territory premiers and leaders or local MPs. The more people who raise this issue with political leaders, the more chance there is to change an unfair system, the insurance broker said. Evan Kerr, Brokers National (Dandenong), Phone 9791 6688. www.niba. com.au/html.
The program provides a team of independent specialists (service providers) who will work – free of charge- to identify an employer’s strategic business aims and objectives. Industry Education & Training Services is a contracted service provider which works closely with small business to identify and develop a workforce action plan which also includes the assessment of the skills of a business’s existing workforce. Opportunities for skills development and training are identified and a training plan is put together through consultation with business. Service provision also includes the sourcing of appropriate training solutions which are then presented to business by IETS. In some cases staff may be eligible for the Victorian Training Guarantee which entitles Victorian workers to a subsidised place in a recognised vocational training course. Eligibility for subsidised training is determined by age, education history, citizenship and residency status. For more details about the program or to register interest in participating, visit www. business.vic.gov.au/skillsforgrowth or www.skills.vic.gov.au or contact Industry Education & Training Services, 196 Sladen St, Cranbourne, phone 5996 2168.
Professional help REED in Partnership was established in 1998 to bring fresh thinking and world class recruitment expertise to private sector delivery of welfare-to-work programs. As a part of the Reed Group, the partnership has 50 years’ experience in the recruitment field and is part of an international company operating in 13 countries. The partnership aims to provide employers with highly skilled and motivated candidates, as well as employment training tailored to the neeeds of individual businesses. The five Reed in Partnership Victorian offices have 5000 registered members looking for work. The offices are at Dandenong, Glen Waverley, Wantirna, Ringwood and Box Hill. “We work with a variety of individuals who can often fill higher level management or skilled labour roles as well as entry-level process worker roles,” business development manager Michael O’Neill said. “Each one also shares a desire to get work and remain employed; enthusiasm to learn and to develop their career; and willingness to repay your investment with
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SMALL and medium enterprise plays a pivotal role in Victoria’s overall economy, accounting for more than 99 per cent of the state’s businesses and employing nearly one million people. No matter the industry, any small to medium-sized business will need skilled and job-ready people to help meet its goals in the short, medium and long term. The Victorian government recognises the important contribution small and medium–sized businesses make and has committed $52 million to the Skills for Growth program. This workforce development program is open to all Victorian-based small and medium sized businesses. Businesses must be financially viable, employ up to 200 staff and have been operating for at least 12 months. The benefits of having management and staff involved in the program include increasing productivity and efficiency though improved skills, developing and applying expertise and procedures and skills-based training programs that meet the particular needs of a business.
states in Australia. Victoria is actually the highest taxed place in the world when it comes to insurance, according to NIBA member Evan Kerr , of Brokers National (Dandenong) As policyholders businesses are paying a number of taxes including GST (10 per cent), stamp duty (7.5 to 11per cent) and - in NSW, Victoria and Tasmania - a fire services levy (up to 72 per cent). High taxes add to the cost of insurance, and add to Australia’s problem
16 | BusinessTimes Greater Dandenong | September 2010
real loyalty and reliability. “We give all of them dedicated support to help them get ready for work.” Services offered by Reed in Partnership include: • Pre-interviewing and assessment; • Arranging interview times • Providing a location for employers to interview candidates; • Conducting training or induction programs. “Account managers will always be available to support employers and their
VECCI tracks, trains
new recruits throughout the initial employment period,” Mr O’Neill said. “With our team of specialised internal trainers and the support of accredited external training providers, we can develop a training package tailored specifically to the needs of a business with absolutely no cost to the business. “Our sector-specific courses also provide a pipeline of candidates for more regular recruitment drives and all candidates are trained to recognised industry standards.” Details: www.reedinpartnership.com.au.
THE Victorian Employers’ Chamber of Commerce and Industry each year helps 15,000 members, customers and clients in the south east region. Its knowledge about building better business skills comes by way of training courses, briefings and networking events to businesses from Mt Waverley to Pakenham. “We are now offering a vast range of valuable training courses which will help business owners and their employees in the south east to develop better business skills,” VECCI’s regional manager Michelle Anderson said. “Courses range from a Diploma of Management to occupational health and safety, with all the information available in a special south east edition course directory. “We pride our self on being the state’s most influential business advocacy group and the benefits of being a member are many and varied. “We understand the time pressures businesses face to make the most of a working day. But we also know that to keep a business in front, owners and managers need to keep up to date with the hot topics that affect their particular industry, markets, operations and staff. “That’s why we developed VECCI Business Briefings - the short, sharp and easy way to get analysis, insights and expert opinion on key developments of relevance to business.” For membership details call Michelle Anderson on 0466 773 553 or visit www.vecci.org.au.
Warehouses, offices close to transport DANDENONG has for years been considered the epicentre of Victoria’s industrial sector. Access has improved as the city’s industrial sector expanded, with the completion of Eastlink, the Dandenong bypass and the duplication of Greens Rd. Five new office/warehouses with access to all parts of Melbourne are now available for lease in the heart of this activity on Frankston-Dandenong Rd, minutes away from the diamond interchange of Greens Rd and Eastlink. Ranging from 929 square metres to
1063 square metres these architectdesigned airconditioned buildings have carpeted offices over two levels with natural lighting for energy efficiency, high clearance warehouses with motorised roller shutter doors, separate amenities, 10 tonne crane capacity and can be joined together with a removable slab. KAB Seating has already signed up to be part of the complex. For details or to arrange an inspection call Chad Kendall at Facey Industrial Commercial, 6 Clow St, Dandenong on 9793 4455.
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mANAgINg
Why diversity? The topic of diversity has been a global debate in the past couple of decades and most companies in the western world have been involved in the debate in some way. Despite this debate, many businesses have not made material progress to improve the representation of women and minorities throughout their organisations. Unfortunately, this has led many governments to get involved to try to help drive substantial improvements by mandating reporting of diversity. The US led the way with complex rules regarding reporting of minorities with the result that there was a substantial distortion of the processes to select and appoint people at all levels of organisations. Most companies subscribe to the concept of meritocracy where the person who is appointed to the job is the one who is evaluated to be the best for that specific job. However, meritocracy was often forgotten and inferior candidates appointed simply to get the right diversity numbers. This tended to build a resistance against diversity among mainstream employees with the result that diversity reporting was seen as a non-core business process that was often delegated to an HR person, if they had one. Late last year, the Australian Stock Exchange (ASX) released a new set of regulations which require companies listed on the ASX to adopt and disclose a diversity policy that includes measurable objectives relating to gender and to report on their progress on an “if not –why not basis”, starting from January, 2011. The ASX is also encouraging non-listed companies to adopt these reporting recommendations. These types of mandated reporting requirements have usually forced businesses to set diversity targets and to report on their structure, processes and results. While this can be helpful, it can also raise some major issues over time. The primary issue is that businesses fail to develop a strong business case for diversity for their specific business niche with the result that reporting becomes perfunctory and seen internally as not really helpful to the business. This misses the whole point of having the business leaders discuss and debate why diversity
Hamish Petrie* Business Consultant
‘Leaders must encourage their diverse team members to bring their differences to every business discussion.’
to going to improve their business. Irrespective of the size or type of business, all businesses can really improve their results if they engage in a constructive discussion about how diversity can improve aspects of their business. This does require some analysis of diversity in areas such as customers, present and future employees, and other stakeholders like suppliers and local government bodies. This should then be blended with the knowledge of their products and/ or services to produce a comprehensive picture of the full dimensions of diversity for the business. In this context, diversity extends way past gender to include such things as age, ethnicity, geographic history, education, professional background and sexual orientation. So why does diversity help a business? Sometimes, just the physical presence of a person with a different appearance can help a team make a better business decision, but the maximum value is achieved when they also contribute to the intellectual discussions of running the business. Intellectual diversity is difficult to manage as team dynamics can often suppress the contribution of individuals who are seen as the outsiders in a team.
18 | BusinessTimes Greater Dandenong | September 2010
This means that mainstream employees have to respect the person with a diverse view and to be sensitive to, and ready to listen to the different perspective that they may have on a topic. This does require good team leadership to ensure that the majority view does not just rule in all decisions. Seeking out the view of the diverse member is a great process that will result in better business decisions. Even within a team of physically similar people, there can be widely divergent personality types and these, too, need to be respected and encouraged to produce better business outcomes. Again, people with diverse backgrounds must be encouraged to speak out on business issues, otherwise there will be little benefit from having them in the organisation. Leaders must encourage their diverse team members to bring their differences to every business discussion. Obviously, it is much easier to measure physical differences than intellectual differences and so measures of diversity all tend to be physical ones. It is ultimately the intellectual differences that will help to enhance a business and these can be measured, but with more complex tools. For example, there are personality type or preference tools that can be very useful in understanding how individuals will normally think and behave. Use of these can really enhance the dynamics within a team, thereby helping to harvest benefits that flow from diverse team structures. If you can see these connections between your business strategy and diversity in both its physical and intellectual forms, then you have developed a business case for diversity that will help you in your quest to develop and implement your business strategy.
ACtiON PlANNiNG GuiDe:
• Which aspects of your business will be most impacted by facets of diversity? • Which facets of diversity will most enhance your business strategy? • Where do your largest opportunities exist to rapidly enhance your business? • How do you evaluate your team leaders on their diversity behaviours? *Hamish Petrie had a 37-year corporate career including 29 years with Alcoa Inc. His last position was as VP–People and Communication for the global Alcoa corporation based in New York, NY. He can be contacted at hamish@nitroworld.net or on 0404 345 103.
mARkETS
US dip or Asian growth? Forecasts of a double dip US could prove correct, but the new breed of “permabears” growling in syndicated press columns have one obstacle to overcome: Asia. From the US perspective gloomy omens may be understandable. It is barely two years ago that first Lehman Brothers and then Merrill Lynch, the world’s largest US broker, imploded. Richard Campbell* Stock Analyst
Lehman Brothers ... first to fold
US complains its consumers are supporting China’s export economy, but China’s exports are often disguised US exports. The volumes are recorded as China’s, but the profits accrue back home for shareholders of Walmart, Nike and Apple. It is also the case that China’s rising internal demand is lifting the region. Former tributaries are now trading partners. Korea’s exports to China rose 38 per cent in July. In June the old enemy Japan had the satisfaction of recording a trade surplus with China after 20 years of deficits.
*Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545, 350 Collins St, Melbourne 3000. email: rcampbell@peninsula capital.com.au
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Then the massive insurer AIG tottered on the brink. GM swayed and was effectively nationalised while the two giant mortgage insurance organisations, Fanny Mae and Freddie Mac, managers or owners of almost 60 per cent of US mortgages, shrivelled to nothing. The shares of both were quietly delisted a few weeks ago. The list goes on. This parade of fraud, chicanery, inept or negligent supervision and plain self destructive idiocy is unprecedented even in the long list of slumps, panics and scams perpetrated on the US pubic over the past 200 years. To add to salt to the wounds, only three months ago China’s annual vehicle production surpassed US production figures. This record was aided by the slump in US output, but China will not stop at a mere 13 million units a year. It aims to double vehicle production by 2025. That means more steel, more aluminium and especially more coal, copper and lithium. Since China’s policy is to make half of its fleet fully electric or hybrid by 2030 copper is needed for coils, lithium for batteries and uranium to power 30 pending nuclear plants. US observers may also be troubled to learn that by June of this year the Asian recovery was so strong that intra-Asian container movements were for the first time greater than ex-Asian shipments to the US. The
Through US eyes this may look troubling, but from our perspective it means that the region which takes 70 per cent of our exports is growing richer by the day. This flows on to the likes of Rio and Leighton. During July alone Leighton’s new Asian orders were $1.4 billion. None of this precludes a double dip in the US. Some 9.5 per cent remain unemployed and about 30 per cent of mortgagees owe more than their house is worth, but it is also possible that animal spirits – the urge to make a buck – will kick in again. Big US companies are groaning with cash. They collectively hold $1.84 trillion on deposit. High cash balances may be a sign of worry, but with interest rates at almost zero, sooner or later many will decide that cash is a worry, too. Not only will inflation erode capital, inaction will mean that the 1.4 billion Asians who can now be classed as “middle class” will be buying goods from Asians, not Americans. Since the Chinese cash hoarding understates the economy by about 30 per cent and since Chinese economists tell us the population is really 1.6 billion not 1.3, those figures look conservative. We will continue to hear the echo of hurt US egos and cringe at the pronouncements of short sellers keen to fan every kind of depressive thinking, but the current American experience is not the Asian experience. China is expanding: India is expanding. And to expand they need materials and energy. Australia has both in abundance.
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September 2010 | Greater Dandenong BusinessTimes | 19
NETWORkINg
Student Peter O’Connor and his wife: Francis
Guest speaker Kelly Byford with Ray Cassar of LINK.
DANDENONG Mayor Jim Memeti, Keith Pimblett, local employment coordinator (DEEWR) and Donald Carter Chairman of LINK Employment & Training presented awards at this year’s LINK graduation at The Castle in Dandenong. Awards were presented to: Luke Judd (Group Training Trainee of the Year), Mongkol Kongkaphan (Group Training First Year Apprentice), Anthony Singh
(LINK Group Training Third Year Apprentice of the Year), Peter O’Connor (LINK GroupTraining Encouragement Award), Kong Lim (Training Services Automotive Apprentice of the Year), Nathan Lieshout (LINK Training Services Building & Construction Apprentice of the Year), Tom Hart (LINK Training Services Building & Construction Encouragement), Tatiana Affoque (Training Services VET in Schools), Richard
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Goldsack (Training Services Community VCAL) and Bobbie-Jo Kelly (Training Services Most Improved). Employers awards were presented to Timber Tegrity and Glenmount Automotive. Guest speaker Kelly Byford worked for LINK Employment & Training during her apprenticeship as a motor mechanic with Doncaster BMW and in the past four years Kelly has won several awards. Ms Byford spoke about the pathways she took before starting her apprenticeship as a motor mechanic, the one thing she had always wanted to do. Her message was “never give up on doing what you want to do”. LINK Employment & Training is a not for profit group employing more than 300 apprentices and trainees and training over 1000 students a year. LINK pays the apprentice and trainee wages, superannuation, payroll tax, WorkCover, organises their training and provides pastoral care and in turn invoices the host employer each fortnight. For more information about group training or training courses call 1300 135 008 or visit www.linkemploy.org.au.
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mOTORINg
Where there’s room to move Here is another entrant in the Australian family car market. One that’s so completely different it may not be noticed the first time you draw up your short list of vehicles. Skoda Superb comes from the Czech Republic. The company is a major part of the Volkswagen Group and uses mechanical components designed by the Germans, often with changes to suit the specific needs of the Czech people. ewen Kennedy
And one of the things the Czechs love is room to move in their cars. The body of the Superb is an all-Czech design and its biggest feature is a huge amount of interior space. Rear legroom in the Superb sees it catering for families with teenagers on the high side of two metres tall. The rear-seat legroom in the new 2009 Skoda Superb is achieved in several ways. Firstly, it’s a big car, being slightly longer than a Holden Commodore or Ford Falcon. Secondly, its transversely mounted engine takes up less length than a longitudinal powerplant, so the cabin can be moved further forward. Thirdly, the Skoda engineers raised the back seats to enable a more efficient seating angle. Headroom may be restricted for very tall people, though my 1.82-metre frame fits with a few centimetres to spare. While it’s longer than the Aussie family sixes, the Skoda Superb is similar in width to a typical medium-sized car, so it doesn’t have the interior width to carry three adults in the rear without a fair bit of shoulder rubbing. The Superb’s boot is huge. Its total volume is 565 litres with the security screen in place, increasing to 1670 litres
when the split-fold rear seats are folded down completely. It’s almost station wagon-like in its carrying capacity. A fascinating feature of the superbly spacious Superb is that there are two way of accessing the load area. Push one button and the boot lid opens in a conventional manner like any other sedan. Press another button and instead of a bootlid you have a large opening hatch and ease of loading bulky items. The idea is that if you don’t need the full-sized opening offered by the hatchback the cabin isn’t exposed to the outside air with all that can mean in the way of wind and traffic noise and fumes. A wagon variant added to the range in May is based heavily on the sedan, with the front of the vehicle and the cabin being virtually the same. Current Superb owners will no doubt be pleased that the large cargo area in the wagon does not intrude on the limousinesize rear seat legroom for which Superb is famed. Head room for both front and rear seat passengers has been slightly increased. Skoda Superb comes in two model grades: Ambition and upmarket Elegance. Recommended prices for the Superb begin at $38,990.
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September 2010 | Greater Dandenong BusinessTimes | 21
HEAlTH
Sweet cravings accompany digestive weakness, and are a sign that your digestion is not coping.
It’s not WHAT you eat So many people enter so many medical clinics, alternative and mainstream, including mine, with a common complaint: “I eat well, I do all the right things nutritionally but – excuse my vernacular – I feel like crap.” These people have diligently followed the advice of the experts – practitioners, self-help authors, friends, websites ... They’ve done the all-vegies regime, tried the low-carb, high-protein diet, obsessively avoided carbs after 6pm, juiced every morning, eaten according to their blood group, got on board with the CSIRO diet because, hey, those guys must know their stuff … they’ve steamed Chinese broccoli, shopped at the organic shop, and they’ve possibly even googled purple carrots (which are either the next super food or the next hoax). And they’ve drunk their two litres of filtered water a day. In short, they’ve done the lot. But they feel no better for it. Frankly, actually, they feel like crap. The reason is that as with many aspects of health in the West, our attention is too much on the detail and too little on the big picture. The problem is not your diet, but your digestion. There’s a difference. A healthy, functioning digestive system can cope with just about any food. It can separate the useful nutrients from the waste, absorb the former and efficiently dispose of the latter. But if your digestion is weak, it doesn’t matter how “healthy” the food you eat, your body will struggle to derive the benefit. It’s very much like receiving a big pay packet, but having a hole in your pocket. So Chinese medicine is concerned less with what you eat, more with HOW. And it’s pretty simple. We have this image of the stomach as being like a great iron
Michael Ellis*
Chinese Herbalist
cooking pot, sitting on top of the digestive fire. Everything that comes down your throat and enters this great pot must be warmed up to body temperature and broken down into soup-like consistency (just like what comes up in those occasional unfortunate moments). Both the warming to body temperature and the action of breaking down complex foods takes energy; that is, it draws on the digestive fire. Essentially, the closer your food resembles a 38-degree soup, the less energy is required to digest it – the less taxing on the fire. The more complex, or cold, your food, the harder that digestive fire has to work. Think how you feel about half an hour after finishing that enormously complex Christmas lunch! Slumped in an armchair with barely enough energy to keep your eyelids up! All your body’s available resources are tied up in digestion. So our first suggestion is to eat warm, well-cooked foods – even if in theory the longer cooking time destroys some of the nutrients. Better to help your digestion absorb some nutrients at minimal energy cost than to have the entire nutritious lot pass through largely undigested (the hole in pocket principle). Here in Australia, we eat extraordinarily well – a little too well, probably.
22 | BusinessTimes Greater Dandenong | September 2010
Our staple foods, like dairy, are highly nutritious. But the downside is that they are rich, complex foods and we tend to eat them cold – and to over-eat them – and as a consequence they tax that digestive fire. Actually, many people’s digestive systems don’t handle dairy well at all (and certainly not the immature digestions of infants, but that subject is an entire column or three on its own). And it’s not only dairy. Fruit – that most overrated of foods – and even vegetables, if eaten raw or only lightly cooked – or microwaved – can be “cold” in effect. So a patient at a Chinese medicine clinic who asks the question: “What should I eat?” rather than getting dietary suggestions, will get advice along the lines of these digestive “seven commandments” : 1. Chew thoroughly, savour the food. Nothing drains the digestion more than gulping down a meal, while busily concentrating on other tasks. 2. Stop eating before you are full. Leave some space for digestion to take place! 3. Avoid regimes. Restrictive diets, while sometimes initially beneficial, weaken the digestion. The best diet includes a wide variety from all food groups. All things in moderation! 4. Eat seasonally Don’t eat raw foods (such as salads) in winter, but only in summer when the earth produces them and the hot climate requires them. Winter is the time for well-cooked meals, root vegetables, soups and stews. 5. Eat foods that are well cooked and warm. That way the digestive process is already begun. Your body expends little energy warming the food or breaking down fibrous cell walls to get to the nutritious stuff! Fruit is cold and raw. It is summer food. If you insist on eating fruit outside the hot summer season, stew it. 6. Minimise rich or excessively sweet foods Although nutritious, rich foods tax the digestion and can leave you feeling bloated, heavy and tired. Sweet cravings accompany digestive weakness, and are a sign that your digestion is not coping. 7. Don’t wash down your meal with a cold drink. This dilutes the digestive secretions, saliva and stomach acids, and puts out that digestive fire. * Michael Ellis is a registered Chinese herbalist in Mt Eliza. www.mtelizaherbal.com
NETWORkINg
Chamber’s business breakfast
Steve Keen, Entapack, Evan Russo and Tony Black, SITA Environmental Solutions. Trevor Stevens, Sealed Air, James Sturgess, Macpherson & Kelly Lawyers and David Willersdorf, Grenda Corp.
CAROLINE Louison and Brooke Pearson, of Aston Ryan Malcolm, were among the guests at Dandenong Chamber of Commerce’s breakfast on Wednesday, September 1. Guest speaker was sports commentator and broadcaster Tim Lane.
Outlook strong for greener homes market owner/future home owners’ awareness of and preferences for green homes, green products and services, and their purchase decisions and processes. The survey also looked at which features related to energy efficiency were most important and evaluated current and future usage and implementations. It found that overall awareness of green homes was relatively high – with roughly two-thirds of survey respondents reporting awareness. Awareness is highest among future home owners who cited stronger future intentions to install all of
SHOUT OUT LOUD
the various green home products/services surveyed compared to their current home owner counterparts. Using multivariate techniques, the research was analysed further by segmented clusters: proactive, socially influenced, and resisters. “The proactive group reduces energy usage by turning off lights when not in use and participating in other green activities such as recycling,” said Frost & Sullivan research associate Christina Alfaro. This group invests in green products, as they believe it will save them money.
IF YOU ARE CONSIDERING SELLING OR LEASING
IndustrIal • CommerCIal • retaIl
1190
AUSTRALIANS plan to increase their use of green products and services over the next year, according to Frost & Sullivan, a California-based growth partnership company. The US company was announcing results of its survey titled Analysis of the Australian Green Homes Market Perception and Preferences. The survey evaluated 1018 Australian home owners or future home owners (those planning to buy a home within the next two years). The survey measured Australian home
September 2010 | Greater Dandenong BusinessTimes | 23
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