December (Frankston & Mornington Peninsula) by Keith Platt

A voice for business: Frankston & Mornington Peninsula

December-january 2010-11 | $4.95 (GST inc.)

A model attraction

Business booms with celebrity drawcard GROWTH ANALYSIS

CROWDER HOUSE

SUPERB SALOON

KNOWING THE JOURNEY SO FAR IS A MUST WHEN PLANNING FOR THE FUTURE

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CONTENTS

who/what/where

Features business: Frankston & Mornington Peninsula Decemb er-jAnuAry 2010-11

| $4.95

Law review: Understanding legal costs

Columns TPGD 0143BT

4 6 8 9 14 23

A mo el attractid on

Business booms

GROWTH ANALYSIS

KNOWING FAR IS A THE JOURNEY SO FOR THE MUST WHEN PLAN FUTURE NING

Pragmatic

Departments State election Busy Bites News Internet sales Cover story Business Directory

A voice for

Keeping real estate in the family

Training tic

Building Care

with cele brity drawc ard

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ers - Supp

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SUPERB SALOON MERCEDES BENZ

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Pragmatic g & Local Trainin offering Nation g is a Regis tered Trainin ally Recog Childrens g Organ nised qualifi Services, cations in isation Aged Care, 9 Person Business al studen and Hosp t attention and suppo itality. rt 9 Acces s to State 9 Flexibl and Federa e deliver

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Cover: Model Megan Gale draws a crowd when she comes to Mornington to launch her latest Isola swimwear range. Page 14

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Crowder house:

TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT

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STATE ELECTION

VECCI requests THE Victorian Employers’ Chamber of Commerce and Industry believes Victoria’s new government should: • Cut payroll tax rate to 4.85 per cent by 1 July 2011 and 4.75 per cent by 1 July 2012. • Reduce to 0.5 per cent the rate of land tax for taxable landholdings between $1 million and $1.8 million. • Establish a new Business Foundations short course program. • Urge an increase of loans to SMEs granted by the banks by a minimum of 20 per cent over 2010-11. • Cut SME red and green tape costs by $100 million a year by 2011/12. • Reduce the costs SMEs face in tendering for government contracts.

Libs strengthen their hold FRANKSTON and Mornington Peninsula residents can look forward to significant benefits following promises made by Liberal candidates in the approach to the 27 November state election. Liberals increased their hold in the region, retaining the three peninsula seats and taking from Labor the seats of Frankston and Carrum. The most wide-ranging shift will come from the Liberals’ promise three weeks before the election to change planning rules. Re-elected Hastings MLA Neale Burgess and shadow planning minister Matthew Guy announced on 5 November a new policy that would see “the peninsula’s special character protected”. They said “the flawed Melbourne 2030 policy (would be replaced) with a peninsula specific planning scheme. “The coalition will recognise the peninsula’s unique character by protecting its rural heartland and seaside towns from the onslaught of high density development,” Mr Guy said.

Eastern bayside, Frankston and the Mornington Peninsula is a sea of blue after Liberals made two gains and retained the peninsula-based seats of Hastings, Mornington (David Morris) and Nepean (Martin Dixon) in the election. Alistair Harkness (Frankston) and Jenny Lindell (Carrum) were casualties as Victorian voters cast aside the 11-year-old Labor government in favour of the Ted Baillieu-led Liberal-National coalition. Accountant Geoff Shaw won Frankston and Donna Bauer is the new MP for Carrum. The only solace for Labor supporters was Jude Perera’s effort in retaining the seat of Cranbourne which covers eastern Frankston. Mr Perera won the booths of Aldercourt, Belvedere Park, Carrum Downs, Carrum Downs Central, Frankston Forest and Skye. Other promises made by the Liberals if they won government included a $2.5 million clean-up of Kananook Creek and bringing ashore the submarine Otama as a tourist attraction for Western Port, if there is community support.

No stress is bad news, says workplace performance expert ABOUT 70 per cent of employees are operating on auto-pilot and should be exposed to regular ‘positive’ stress at work, according to workplace management expert Tony Wilson. Wilson says a moderate amount of workplace pressure is a major contributor to productivity and job satisfaction, yet many people do “everything they can” to avoid feeling stressed at work. “The drive from short term stress makes sure the right chemicals and hormones are stimulated to switch on the brain’s pre-frontal cortex. This is the brain’s CEO, responsible for decision making, analysing, problem solving and prioritising – all the things that we need to thrive in today’s workplace,” he said. Wilson claims that constantly operating on auto-pilot is a serious resource problem happening in almost every workplace in Australia. “It is costing the Australian economy billions of dollars every year,” he said. On the other side of the coin, Wilson warns that while workplace pressure can be positive, get too much of it — when a flood of hormones bombard your body longer

than 24 hours — and “bad things happen.” A 2008 report into workplace stress published by private health insurer Medibank Private found stress-related illness costs the Australian economy $14.81 billion a year. The direct cost to employers is $10.11 billion and, on average, more than three days are lost to stress by each worker each year. Wilson has the following tips for knowing when enough stress is enough: The performance zone: Employees should be frequently exposed to short bursts of pressure and managers play a critical role in making this happen. “It can be anything from a complex problem to solve autonomously to a stimulating task with a fair but firm deadline,” he said. Good stress is the equivalent of driving home on auto-pilot when suddenly you spot a police car in the rear-view mirror. “Suddenly you’re switched on.” Performance decline: Bad stress in the workplace can be caused by excessively long hours, repetitive and unpleasant tasks, isolation, job hazards, toxic bosses, lack of job security or conflicting demands.

4 | BusinessTimes Frankston Peninsula | December-January 2010-11

“Higher amounts of stress cause the emotional centre of our brain to switch on and this tends to divert resources away from the brain’s CEO and back to the auto-pilot,” Wilson said. “Research suggests that too much stress has a counterproductive effect and actually makes us quite dim-witted.” A recent Duke University study of elite American basketball players revealed that they don’t perform better under pressure. When it comes to workplace stress, the message from Wilson is clear: get the balance right or risk losing staff. “Our brains are incredibly fussy machines. They need precisely the right amount of stress to perform at their best, and when they don’t it’s a downhill slide.” Originally a performance coach for elite sporting teams and Olympic athletes in Australia and the US, Tony Wilson works with executives in leading organisations to create a culture of high performance. Wilson’s new book on building effective teams at work, Jack and the Team that Couldn’t See, is out now.

NEWS

n Bizzquiz

Arthurs Seat chairlift will be replaced.

Tourism gets a $5 million lift A CONSORTIUM led by the executive chairman of Macquarie Group’s Melbourne Office Simon McKeon is prepared to spend $5 million on a new chairlift for Arthurs Seat. Mr McKeon, former head of the Point Nepean Community Trust, said the consortium planned to create a new, international best practice chairlift featuring open four-seater chairs and six-seater enclosed gondolas. Meanwhile, in the aftermath of the state election Liberal MP Martin Dixon vowed to seek compensation for former chairlift operator Richard Hudson. Mr Dixon put on notice Parks Victoria’s leasing section which he blames for holding up projects on public lands on the peninsula. While Mr Dixon welcomed the new venture and a proposed 50- year lease, he said the peninsula would have had a chairlift this summer if not for Parks Victoria. In August, Richard Hudson started a media campaign to reopen the 950-metre ride from the bottom to the top of the peninsula’s most prominent geographic feature. The chairlift had been closed for more than four years following accidents, breakdowns and loss of a lease which have sparked several legal actions, some of which are ongoing. It has been up and running for just 18 months of the past seven years. Simon McKeon said the new chairlift would offer modern comfort while allowing full enjoyment of the natural environment and the spectacular views of Port Phillip. The facility will also be “disability friendly”. Former environment minister Gavin Jennings said the signing of a preferred operator was “great news for the Mornington Peninsula

and would see tourists flock to experience the chairlift”. “The Arthurs Seat chairlift is one of the best tourist sites in Melbourne. We expect the upgrade will see more than 100,000 visitors ride the lift each year, which will bring valuable tourist dollars to the Mornington Peninsula and help create local jobs,” Mr Jennings said. Mr Jennings said the state government had agreed to amend the National Parks Act 1975 to allow a lease of up to 50 years for the chairlift. Expressions of interest to build and run a new chairlift closed 22 September, although the legislation allowing the lease to be extended from 20 to 50 years is not expected to go before Parliament until February 2011. Mr Hudson said in August that a sale of the chairlift to Mr McKeon’s consortium fell through in August 2009 because Parks Victoria did not renew his lease. “Simon McKeon’s consortium would have bought it – we had contracts drawn and I’d found engineers to run it for them – but it fell through because there was no lease. “I would have been happy for them to buy it. I don’t want a bunch of cowboys here.” Steve Gartland of Parks Victoria said at the time “the infrastructure will be replaced. It is too old. We need something that will operate for the next 50 years”. Mr Hudson said he had been told to remove his chairlift infrastructure three months after his lease ran out. “It’s now been 18 months. They offered me a financial incentive to take it away, but that would be stupidity, it’s now virtually a brand new machine.”

Christine Richards has just finished her term as mayor of Frankston City Council. The businesswoman/lawyer/ broadcaster has been a Law Reform Commissioner for both Victoria and Queensland. Here she responds to BusinessTimes’ first Bizzquiz... I dreamed of being ... a doctor until I realised I’d have to give injections. My first paid job was … selling socks and underwear in Frankston’s Bounty Shop when I was 14 years old. In 10 years I will be … a mediator, a manager of our family’s modest business interests and actively advocating for Frankston. Our business planning entails … careful evaluation of future trends. Tip for success: Persist. Our family motto is: “It’s never over until it’s over.” I am inspired by … Frankston people. They are so community minded and generous of spirit. Anyone starting a business should … check its potential from every angle. I’ll know I’m successful when … Melbourne people say: “I love Frankston”. My mother and father told me … to always be fair. I wish I had … more time. I wish I had not … skipped so many company law lectures at University.

December-January 2010-11 | Frankston Peninsula BusinessTimes | 5

BUSY bites

Green globe

People seeking home finance are increasingly turning to smaller lenders because they can often secure a better deal, according to mortgage broker Loan Market. Loan Market boss Dean Rushton said loan lodgements with the major banks had fallen by eight per cent over the past three months. Mr Rushton said currently 60 per cent of loan applications made through Loan Market brokers were with the big four banks, but there had been a significant fall in loan traffic to the majors. “It is clear that in a climate of rising interest rates that prospective mortgage holders are looking around for the best deal and they are finding competitive offers from smaller lenders. He said second tier lenders were gradually gaining ground as post GST caution abated and borrowers drifted away from known brands. “While interest rates are likely to keep rising, people can still achieve significant annual

savings by shopping around and getting a better deal on a mortgage with a much more competitive package,” he said.

Most Aussies say ‘no’ to carbon price Most Australians would prefer that the federal government never introduce a price on carbon. In response to the statement: The government should introduce a price on carbon, 53 per cent of Australians voted never. The findings were revealed in a recent survey of over 1100 Australians conducted by Youi Insurance between September and November, 2010. The nation also appears divided on when a carbon price should be introduced, with 27 per cent of respondents saying the government should introduce a price on carbon this year, 10 per cent saying next year and another 10 per

cent wanting it put off for five years. Brendon Dyer from Youi Insurance said it appeared respondents felt that introducing a price on carbon would lead to an increase in their day-to-day living expenses. “There is a fear of the unknown. The majority of respondents believe that introducing a price on carbon will lead to an increase in such basics as fuel and electricity,” he said. Youi Insurance is a national insurer that rewards its customers with cheaper premiums if they use their cars less. The average mid-sized sedan emits 3.6 tonnes of carbon each year, based on travelling 15,000 km annually.

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Earthmate is Australia’s most environmentally sensitive light globe, according to its distributor ANL Lighting, which is hoping it will become our most switched on green globe. From its 100 per cent recycled packaging to its compact size, the mini Compact Fluorescent Lamp (CFL) is energy efficient, long lasting and contains as little as 1mg of mercury, 80 per cent less than most other globes. ANL says Earthmate has been designed to reduce greenhouse emissions by reducing the amount of energy used in lighting. Domestic, commercial and industrial lighting consumes around 25 per cent of all electrical energy generated and Earthmate aims to reduce that figure and fight global warming in three key areas, by: • Consuming 75 per cent less energy than incandescent globes • Lasting up to 10,000 hours up to 10 times longer than incandescents; and • Containing as little as 1mg of mercury most other globes contain 5mg or more Earthmate’s globes are available as bayonet or screw-in. The globes come in two different colour temperatures – 2700k and 5000K – and multiple wattages.

Smaller lenders gain

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Merry time for Victorian businesses

Business confidence rose in Victoria during the quarter and now outstrips the nation. Report author Christena Singh said Victorian businesses were the most confident in the nation, expecting the nation’s best Christmas trading period. Thirty-four per cent of Victorian businesses are expecting a busier Christmas period compared with last year, while 19 per cent are expecting trading to be slower, with the remaining expecting business to be about the same as last year.

On average, Victorian businesses are predicting Christmas trading to be 16 per cent busier than last year. Those predicting a quieter time expect trading to be 27 per cent quieter than last year. The report shows six in 10 Victorian businesses are planning a Christmas party for staff or customers, the highest level behind the ACT and Northern Territory. Business confidence rose in Victoria during the quarter and now outstrips the nation. “Trading conditions in Victoria are the strongest we’ve seen in 12 months,” she noted. Sales improved considerably in Victoria during the quarter, outperforming all other states and territories. Profitability also improved and is stronger than it was this time last year. While Victorian businesses are expecting some weakening in conditions this quarter, they have the nation’s most bullish expectations. “Interestingly, the top two concerns of Victorian businesses relate to demand issues of lack of work and cash flow. However, the third most pressing concern comes from the supply side with problems finding and keeping staff,” Ms. Singh said. Business support for the Victorian government’s policies decreased significantly during the quarter.

Laptop warming a warning to men If you’re a man, your lap may in fact may not be the best place to work on your laptop if you are concerned about your reproductive health, warns the Urological Society of Australia and New Zealand. A new study, published in the journal, Fertility and Sterility, shows that sitting with a computer on your lap will heat up the temperature of your testicles which in turn may affect sperm quality. The researchers,

at the State University of New York, hooked thermometers to the scrotums of 29 young men who balanced a laptop on their knees and found that even with a pad under the computer the men’s scrotums overheated quickly. Furthermore, the study found that the temperature rose above what is considered a safe level after 10 to 15 minutes without the men noticing.

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TOTAL revenue of Australia’s 100 fastest-growing companies leapt 47 per cent this year to a record $3.63 billion, according to BRW. Of these, 82 per cent say they benefited from the financial crisis. BRW says that more than one-third of Fast 100 companies were founded within the past five years. Topping this year’s list is ASX-listed energy retailer Australian Power & Gas There are 70 newcomers to the Fast 100 – nine of them in the Top 10.

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Consumer sentiment fell in November, but is proving steadfast against the latest Reserve Bank interest rate rise, a survey shows.  Westpac-Melbourne Institute consumer sentiment index fell by a seasonallyadjusted 5.3 per cent to 110.7 points during the month, from 118.3 points in the prior corresponding period.  Westpac chief economist Bill Evans said he had expected a large fall in the index after the unexpected 25 basis point move in the official cash rate, along with Commonwealth Bank of Australia’s 45 basis point hike in its variable mortgage rate.

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Victorian businesses are expecting the Christmas trading season to be full of cheer, according to the Sensis Business Index announced late November. The quarterly survey, which began in 1993, provides the latest snapshot of small and medium enterprise’s (up to 199 employees) perceptions and activity. It is based on a sample size of 1800 from metropolitan and regional areas, interviewed between 18 October and 15 November.

Consumers twitchy

December-January 2010-11 | Frankston Peninsula BusinessTimes | 7

NEWS

Woolworths the new Master Womenâ&#x20AC;&#x2122;s Health Victoria marked its White Ribbon Day, the International Day for the Elimination of Violence Against Women, by urging employers to consider workplace-based programs that address domestic violence. Executive Director of Womenâ&#x20AC;&#x2122;s Health Victoria, Marilyn Beaumont, said their whole-of-company workplace program Stand Up: Domestic Violence is Everyoneâ&#x20AC;&#x2122;s Business, funded by VicHealth, pointed the way to business owners.Â â&#x20AC;&#x153;Stand Up is the first of its kind in Australia and aims to prevent violence against women and support staff who may be experiencing it. It includes workplace policy, awareness raising and training on how to prevent domestic violence. â&#x20AC;&#x153;Domestic violence is a very serious problem â&#x20AC;&#x201C; one in six women have experienced violence from a current or former partner. We must work together as a whole community to prevent violence against women. This includes businesses. â&#x20AC;&#x153;Workplaces need to take domestic violence seriously. It can affect employee health and wellbeing, result in absenteeism and lost productivity or lead to acts of violence being carried out at work, Ms Beaumont said.Â

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Lettieri Group and Nichols Crowder Property Solutions have negotiated a new 10-year lease to Woolworths/Lowes for a new home improvement centre at Carrum Downs. The site on the corner of Lathams Rd and Frankston Dandenong Rd will also accommodate a further 11320m2 of bulky goods retailing. Michael Crowder, who negotiated the lease, said there would be a range of other tenancies starting from 1000m2 with rentals expected to be in the $180psm pa (net) range. Mr Crowder said he expected Lettieri to start complete construction in the third quarter of 2011. The megastores, likely to be called Master, are planned throughout Australia and appear to be Wooliesâ&#x20AC;&#x2122; answer to Bunnings. They are a joint venture between Woolworths and Lowes Companies Incorporated, the second largest home improvement retailer in the world with 1700 stores in the US and Canada. There are plans for 30 $13 million stores in Victoria within three to five years. The Carrum Downs site has been rezoned from Industrial 1 to Business 4 by the state

government with local government support. It will accommodate the balance of the high demand for bulky goods retailers left over from the successful Power Centre Development on the Corner of Cranbourne Rd and McMahons Rd, Frankston. Mr Crowder said this location would meet the needs of those retailers who did not want to pay higher rents in Frankston, but also capture the Dandenong/Cranbourne market. Mr Crowder said he had strong expressions of interest from furniture/bathroom/curtain/carpet and pet retailers who believe they could service both the Frankston and Dandenong markets without the need for showrooms in both locations. His firm was still seeking tenants aligned to the automotive, lighting, bedding, outdoor specialists, baby goods, floor coverings, hi-fi/electrical retailers. â&#x20AC;&#x153;The location offers excellent main road exposure with about 40000 cars passing each day and the excellent access to Eastlink and the new Peninsula Link freeway,â&#x20AC;? Mr Crowder said. â&#x20AC;˘ Woolworths is also planning one of the new megastores in Mornington, at the intersection of Mornington-Tyabb and Dunns Rd.

Trade surges with national container record Total container trade through the Port of Melbourne set a new national record in October, handling more than 217,000 twenty-foot equivalent units (TEUs) for the month, according to Port of Melbourne Corporation (PoMC). Overall trade through the port also reached a new high, handling a record 7.28 million revenue tonnes, increasing 7.6 per cent over October last year and up 11.7 per cent for the financial year to

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date. Containers were the strongest contributor to the trade surge with October throughput up 10.4 per cent on the same period last year, comfortably surpassing the previous highest monthly volume of 210,985 TEU recorded in August. The new national monthly record represents the first time an Australian port has handled the equivalent of 7000 TEU a day on average for a monthly reporting period.Â

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Violence at home a workplace concern

Design with energy efficiency in mind

Net sales catch rising dollar NATIONAL retailer Gerry Harvey (Harvey Norman and Clive Peeters) has partly blamed online shopping for lacklustre pre-Christmas sales. He says the competition from overseas is unfair and estimates the federal government is missing $1 billion in GST revenue a year. The rising value of the Australian dollar has also made internet shopping overseas that much cheaper. Harvey’s warning of an economic downside to internet shopping was made during his address to Harvey Norman’s annual meeting in November. He also blamed heavy discounting among onshore retailers for profit falls. David Richards writing for the online Channel News Australia said no duty applies to Australians who buy goods worth less than $1000 from overseas online sites. He quoted Harvey as saying: “The government can’t just ignore it. They can’t just say it is too hard, it is too much money … it is sending retailers broke.’’ In BusinessDay section of the Brisbane Times Michael Pascoe said the “rational approach taken by the Australian Tax Office is that trying to collect GST on internet purchases of under $1000 isn’t worth the candle and the dollar-induced surge”. He compared retailers to newspapers which were “fumbling around” trying to find the right mix between print and internet.

“From the malls to the suburban strips, it’s more likely to be the rent that sends a shop broke than a few internet shoppers avoiding GST,” Pascoe said. Internet retailer eBay Australia issued a statement saying calls by retailers to reduce the GST threshold on imported goods bought online “is an unfair attack on Australian consumers, particularly considering the phenomenal growth of Aussie retailers online”. “We can’t understand why some retailers would seek to attack the consumer, when the answer is to simply get online,” said managing director Deborah Sharkey.“Australian based sellers on eBay have experienced phenomenal growth this year, almost 10 times retail growth over the same period. These sellers are reaping the rewards because they are competing online and meeting demand from Aussie buyers.” Sharkey said research showed Australians shopped online because goods were unavailable locally and the internet “is giving Australian consumers the power to shop globally”. “According to research by Forrester Consulting, the medium-term trend is for roughly four-fifths of all Australian online expenditures to be placed with local websites. Australian retailers without transactional websites would be well served to develop a compelling online offering, compete and let the Australian consumer decide.”

With household power bills rising by as much as 27 per cent in the past year and more increases predicted, the best solution is an energy efficient house designed with the help of experts, says the Association of Building Sustainability Assessors (ABSA). Alison Carmichael, CEO of ABSA, which represents experts who measure the energy efficiency of homes, said that while existing houses can be made more energy efficient, those building new homes had the best opportunity to get it right first time and reap the benefits. “Building houses that are energy efficient is far cheaper than trying to retrofit existing houses,” Ms Carmichael said. “Typical annual domestic electricity bills in Australia range from $1446 to $2012 and have risen between 2.4 per cent and 27.7 per cent in the 12 months to July, 2010.* Across Australia new homes must meet minimum thermal performance standards. The Nationwide Housing Energy Rating Scheme (NatHERS) provides a framework that allows qualified experts to use computer simulation to rate potential energy efficiency on a scale of zero to 10 stars. *Figures from energy comparison website Goswitch.com.au

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December-January 2010-11 | Frankston Peninsula BusinessTimes | 9

MANAGEMENT

To grow, you must do the analysis A leading question that life partners like to ask is “What are you going to be doing in five years time?” While it is an easy question of ask, it is one of the most difficult questions to answer. Before you can start to think about the road ahead, it is really valuable to understand fully where you are today and how you got there. If you are a small business owner, this means that you need to invest some time to answer these background questions with an appropriate depth and understanding. You may have to rearrange some of your responsibilities so that you can get a few days to do this properly. While understanding your current business would seem to be innate to most owners, it is very valuable to take time out of running today’s business so that you can start the process to shape tomorrow. To understand your current business, you should look deeply at your business data to determine which particular parts of your business are contributing the most to your bottom line and which parts of your business take the most time and effort. If your business does not have good data to answer these questions, then you could start to create some data to help. One simple analysis that can help is to create a diary for you and your key staff for a couple of weeks. You can then review this and analyse your activities. It has been said that “all management issues can be solved by a two-by-two matrix” and the one that works well here is a four-box matrix with the two axes: - Importance and Urgency. If you review your time allocations, you will often find that you spend most of your time working on urgent issues, particularly the “not important” ones including some emails and phone calls and other trivial issues that don’t generate cash flow. Often, the box with the least time invested is the “important – not urgent” box. Actually, this is where business owners should be spending most time as this is where you will find most of your opportunities for improvement and growth. If these issues are neglected today, they will usually become urgent over time because

Hamish Petrie* Business Consultant

Looking in the rear vision mirror ia also valuable to reflect on the major forces that have shaped your business today. they are important by definition. Understanding your current business should also include some analysis of competitors, markets, customers, financials, business processes and, of course, your people. This may be complex but, remember, this is only the start of the process. While you have to invest some significant time personally, it is valuable to identify which of your current team could be most helpful and able to grow as you grow the business. It is always valuable to have second or third inputs to these questions, so invest some time in these key people. Some of these analyses can be delegated to them if you create the priority and time for them to do it effectively. Perhaps they can research competitors and customers, or they could attend a business meeting or conference to stimulate their thinking. Additional training for your staff in the latest thinking on technology or business processes can also prepare them to help. As the analysis of your current state develops, it is valuable to clarify precisely what business you are in today. Try to define this as narrowly and specifically as possible because this will help later to look for potential directions for growth. Most small businesses operate in a very well defined niche that may be limited by the type of product or service, your location, position in your market or how you go to

10 | BusinessTimes Frankston Peninsula | December-January 2010-11

market. You should also identify what are your major competitive strengths and what are your major assets. Often your best asset is the intellectual knowledge that you possess about your customers. One tool that has been used with significant success is a SWOT analysis in which you identify your strengths, weaknesses, opportunities and threats. Looking in the rear vision mirror is also valuable to reflect on the major forces that have shaped your business today. While the external factors are out of your control, they may have created the major variability in your results. Issues like the state of the economy, technology change, new local competitors, new government policies or regulations or new replacement products can accumulate to make or break your business. Another tool that can assist is a “force field analysis”, in which you identify those major issues (forces) that have increased or decreased your business performance. You can separate these into two groups: controllable or uncontrollable. While you may have led on the controllable issues, you should reflect on how well you reacted to the uncontrollable ones as this can create some insights that are valuable later in this process. Next issue, we will review the next step of planning for growth. So when you are asked that leading question, maybe your initial answer should be “Give me some time so that I can properly analyse and plan an answer”.

Action planning questions: 1. Do you have an in-depth analysis of your current state of business as a foundation for growth? 2. Does your personal time allocation provide sufficient time to work on important but non urgent issues like business analysis? 3. Who in your current team is most able to help you with this, and how are you investing in them to prepare them for growth? 4. Do you have an analysis of external factors that have most impacted your business? 5. Do you have a specific clear definition of your current business niche? *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

A year of extremes in investment markets In 2010 investment markets were stretched between extremes. China & Co are accumulating cash in record amounts while US and European indebtedness is now in the trillions. Within economic regions the extremes are also pronounced. Detroit is a ghost town, but the in the mid-west jobs are plentiful and repossessions unknown as the weak $US drives up income from grains and soy. So too In Europe: Ireland has followed Iceland and the Baltic states. The banks are now in state hands, unemployment is heading to 20 per cent. Ireland is broken and Greece and Portugal are little better. But travel north and German business confidence is the highest in 20 years; labour is tight. Demand for vehicles is so strong Christmas leave days have been cut. Australia has a paler version of the same. The Gold Coast is struggling as retirees head south; tourists are scant; office vacancies are high. But further north where billions are being allocated to the coal and gas industries it’s all systems go. Our share markets say much the same. Exposure to the US has wounded CSR and Boral, former doyens of the market. Westfield has exposure to both embattled US regional economies and the UK consumer who hasn’t yet felt the full pain of public service lay-offs. But it’s largely the reverse in metals and mining services listing. The mid-tier metals companies have not only appreciated by 30- 50 per cent this year, many are paragons of financial rectitude

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with big cash balances. Oz Minerals has only touched a tenth of the billion in cash it received by selling its Laotian gold and copper mines. Within sectors there is wide dispersion, too. In retail The Reject Shop is focussed on the consumer hit by rising interest rates and other charges, while up-market David Jones and Oroton are cruising. The high $A help margins for them, but in the mid-market Harvey Norman is struggling as Asian exporters drive down the price of electronic goods undoing the effect of the high $A. In the life science dispersion is always wide, but this year we saw more winners

n Advertise in a magazine mailed to nearly 7000 business owners where you do business. n An affordable way to reach prospective clients – an advertisement in a magazine sought out by business leaders costs less than a mail-out (and the advertisement will have a longer effective life). Reaching from Seaford to Portsea. n The magazine is kept in offices and business foyers, so its effective shelf life is several months.

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than usual. Acrux stormed home with big milestone payments for its sex hormone treatments. It is promising that total rarity for a biotech, a dividend was paid. Tissue Technologies and Mesoblast soared as their cell growth therapies surpassed expectations in human and animal trials. New skin, knees, hips, hearts? Watch this space. Amazing banking incompetence explains the downside; the upside is largely China as it overtakes the US economy in size – some say as early as 2012 – this effect on us may even strengthen. Our rare earth developers became the latest to benefit when China placed these not so rare elements on a list of restricted exports as it pushes rapidly into large scale wind farms, solar, fast trains and fully electric vehicles to attack the pollution haze that embraces country as much as city. Molybdenum was added in late November. Our uranium explorers will benefit. There are 300 new nuclear reactors planned with nearly 60 under construction – half in China where Gen-4 is being planned. India is just as advanced. It expects to have a breeder reactor operational by 2014. It will follow with modular, distributed reactors as it electrifies the whole country. This will absorb much more copper and strengthen the demand for speciality metals, uranium and thorium held by ASX explorers from Namibia to Sweden. In complete contrast to digging, one unique ASX listing holds patents to a method of enriching uranium that more than halves the cost. This looks like market dominance pending – but that’s a story for 2011.

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December-January 2010 -11| Frankston Peninsula BusinessTimes | 11

feature

CROWDER HOUSE Keeping real estate in the family

Words/image: Keith Platt

HE name Crowder has been synonymous with real estate in Frankston for well over half a century. While the original company that grew from its start in 1952 to a peak of eight offices before being sold to the Wentworth group no longer exists, members of the Crowder family are still very much a part of the real estate industry. At one stage Crowders was the largest family-owned real estate agency in Victoria and planned to run offices from Patterson Lakes to Portsea. According to Geoffrey Crowder, it 12 | BusinessTimes frankston Peninsula | December-January 2010-11

became apparent the business was â&#x20AC;&#x153;too difficult to controlâ&#x20AC;? and it was cut back to three offices until being sold three years ago to Wentworth (Century 21). The sale freed up members of the third generation of the family to branch out on their own: Michael Crowder is a partner at Nichols Crowder at Carrum Downs and James Crowder has Community Real Estate, Mt Eliza. Geoff Crowder stayed with Century 21 for three years after the sale and is now with Nichols Crowder working alongside his son Michael. Crowder, who followed his father into the family business

Geoffrey Crowder ... confidence in Frankston.

in 1963, operates as a consultant to the marketing and sale of commercial developments. One of his latest projects is seeking expressions of interest for the Peninsula Centre, in Nepean Highway, Frankston. The Asia Pacific group has had second thoughts about remodelling the building as a luxury hotel and serviced offices since buying it three years ago for $11.25 million. Crowder is suggesting that new owners should spend about $20m converting the building into 90 apartments and shops. He said Frankston City Council wasted money a couple of years ago on a feasibility study into using the building as a civic

centre. Crowder remains optimistic about Frankston’s future and says there are developers standing back waiting for signs of a reversal in the city’s fortunes. “Frankston has been undervalued for years, but a lot of developers and money are now coming in./It’s a question of who goes first. When that happens, that will be it. “There should be substantial high rise – seven to eight storeys – in Frankston. “As soon as you get one major development here it will set a precedent – the Peninsula Centre could be the catalyst.” Crowder says at least one development is being held back by a dispute between owners of the Dimmeys site at the corner of Wells St and Nepean Highway and he knows of a syndicate that has already bought two “substantial properties” for future redevelopment. A critic of big government, Crowder rails against banks and bureaucracies. He says he has never joined a political party, but came close when former Queensland premier Joh Bjelke-Petersen was “in full flight” on his ill-fated quest to be prime minister. “We’ve become a country of constraints and bureaucracies rather than production,” he says, bemoaning the proliferation of forms associated with real estate transactions. “It’s all about shuffling papers; the systems need freeing up.” And banks? “They fool everybody – they’re shysters who charge interest on the dot.” Crowder said he found out 10 years ago about banks’ overseas borrowings but no one was prepared to expose the shortcomings. He started out in real estate aged 18 after nine months at the stock exchange and was working with his father John and brother Ian by the time he was 21 after two years as a valuer’s assistant in London. In his more than 50 years in real estate he has seen “the rise and fall of Frankston” with Crowders being involved “in every one of the city’s major commercial developments”. He dates Frankston’s “demise” back to the failure of the Quayside (Bayside) shopping centre development, a partnership between Frankston City Council and the Galvin group which, he says, lost $50 million and saw the council forced to relinquish its share in the shopping centre, Central Park and a car park in Young St. “Frankston Arts Centre was kindly left by the bank.” Crowder says the city is still “undergoing readjustment”, since the opening of the bulky goods precinct off Cranbourne Rd, about half way between the Karingal shopping centre and the city’s CBD. He said the current council was “better focused” and “really pushing very hard” to entice business back to the city centre, but would need “substantial government funding, like at Dandenong”. He is optimistic Frankston “will get there”, but says it has “certainly been through a lull, even though it is one of six state government-designated activity centres”. The city has the physical attributes to attract business and can “feed” off the Mornington Peninsula. Crowder says Frankston needs a multi-storey car park on the fringe of the CBD and with Bayside shopping centre attracting 70 per cent of consumer spending, other shops needed to find wu 23 their own identity. December-January 2010-11 | Frankston Peninsula BusinessTimes | 13

COVER STORY

Celebrity game draws a crowd Word/images: Keith Platt INSTANT communications can create instant notoriety or instant celebrity. Both can fade just as quickly. Identifying and then tying business to a longer-lasting celebrity can add value to any product. Sports stars are a great attraction, but sometimes can have problems, especially when it comes to well paid, fit young men behaving badly.

Celebrity gleaned from TV appearances or playing loud guitars and drums can also come with a larrikin attitude. But cotton onto a model with a winning smile, a no-nonsense approach to business and an ability to avoid indiscrete moments on a yacht, beach or in a nightclub and it can be like striking gold. Myer and David Jones were quick to see the value of investing in Jennifer Hawkins and Megan Gale as highly

14 | BusinessTimes Frankston Peninsula | December-January 2010-11

paid model ambassadors. They attract so much attention wherever they go that the recognition and brand association becomes automatic. These partnerships do not come cheap or without detailed planning and marketing strategies. There is rent-a-celebrity industry that includes providing well-known faces and names as well as the more conventional speakers and motivators.

None come cheaply but can be such a drawcard that the mere mention of an appearance by a celebrity can make or break an event. Certainly long time Mornington swimwear retailer Michelle Ann achieved the coup of the pre-Christmas season when Megan Gale rode into town along with personal assistants and models. The celebrity and her entourage had flown in from Sydney for a parade of Ms Gale’s own brand of swimwear, Isola. The cost to the family-owned Michelle Ann’s in Main St was minimal, finger food, wine and some overtime. Invitations had been handed out to

including the materials. She was then “interviewed” by her publicist, enabling her to virtually repeat a news release sent to local newspapers. Although the show was professional and stage managed (models need to start walking on cue and MCs need to know what to say), Gale’s warm personality, winning smile and readiness to pose for pictures with the punters after the parade made it feel low key and personal. Best of all, it marked Michelle Ann’s as the place to be seen that night and, probably, the place to shop before hitting the beach or the pool (in an Isola bathing suit, of course).

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customers and the capacity crowd also included a few inquisitive youngsters in thongs and t-shirts attracted by the buzz of an after hours crowd. One woman missed the parade after being stuck in traffic coming home from Hampton, but still managed to meet and greet friends and secure Gale’s autograph for “my boys”. Another couple stood appreciatively near the catwalk even though firefighters had just minutes before doused a fire in their investments house around the corner. As for the parade itself, Gale described how she worked with her team of designers and approved each piece,

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Understanding legal costs One of the first things you’ll want to know when you consult a lawyer is – how much is this going to cost me? The answer is: it depends. This isn’t intended to be evasive – there are so many variables that can impact on the cost of legal services. For instance – • what sort of transaction or issue is involved? • does it involve on-going negotiations, a potential dispute or litigation involving another party? • or is it a specific task or document with clear parameters and a defined start and finish point? • is the work urgent, complex or unique? • have you provided complete instructions to enable your lawyer to do their work, or will they have to do a lot of the preliminary work themselves? • are you likely to need a lot of extra time spent with you, guiding you through the legal process or providing advice? How your lawyers will charge for the work they do is something you need to discuss. The work is generally charged according to the scale of costs per item of work as specified by an Act of Parliament: a time-based rate, a fixed project fee; or a mix of these. What you are charged will always depend on what type of service you need and how long it reasonably takes to provide that service and to complete the work to your satisfaction. What your lawyer will (and should)

give you when you first engage them is a best estimate of the likely costs involved in working for you, based on what they know at that time about the work you want done. This estimate can and will change if the nature of the work, or any of the assumptions on which the estimate is based, change. Here are some tips: • Agree with your lawyer on a scope of works and a clear set of parameters for the task to be done. This way, your lawyer has the best chance of estimating costs as accurately as possible, and you have the best chance of knowing what you can expect to get for your outlay. • Be reasonable – except for very standard, repetitive type transactions, it is really very difficult to anticipate all the possible future scenarios that may arise. You are entitled to receive an estimate, but you should not regard it as a fixed and firm quote. • Be prepared and provide instructions to your lawyer a reasonable time in advance of your own deadlines. If you want legal work done properly, you need to be prepared to wait a reasonable time for it. If you want something done urgently you should expect to pay for the additional pressure you are placing on your lawyer to meet this demand. Given a choice, any lawyer will prefer to have the benefit of a sufficient amount of time to do the work to their required standard, rather than being able to charge a fee loading for urgency. • Be concise, precise and comprehensive in your instructions. This will make it easier for your lawyer to assess what needs to be done to give you a realistic estimate of both time and costs and to actually do the work.

• If you change your instructions in any material way, you need to understand that this will probably affect these estimates. • Even ‘fixed’ project fees will be subject to change – the fees are based on an agreed scope of works and certain assumptions and parameters. If your instructions change substantially or the work moves outside those parameters, additional costs may be charged • While it’s important to keep the lines of communication open, be aware that every time you contact your lawyer (whether by phone, email, in person) this means time and cost. Try to limit your contact to what is reasonable or at least understand the potential for costs to climb over the initial estimate. The overriding consideration in all of this is that you need to trust your lawyer, and your lawyer needs to trust you. The relationship needs to be based on mutual respect and open communication. If you accept that your lawyer is acting in your interests, and not trying to cheat you, and that you are only going to be charged for work that has actually and reasonably been done and can be justified as necessary, then in return, you will be prepared to pay for that work even if it might exceed an estimate given. A win-win situation. If you don’t have that sort of relationship with your current lawyer, then it may be time to find another one. By White Cleland Lawyers. For inquiries on this topic or other issues contact the Practice Manager, White Cleland Lawyers, Frankston & Melbourne 9783 2323 www.whitecleland.com.au

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Cyber seat AUSTRALIA’S restaurant industry is set to ‘go digital’ with the help of a new online booking system . bookarestaurant.com allows diners to search, in real-time, for available tables at their preferred restaurant and book them on the spot. In much the same way as sites such as Wotif.com and Webjet.com have altered the landscape for accommodation and airline travel industries, bookarestaurant. com will enable diners to see available tables and booking times at a glance. The system was developed in Australia by Analytical Systems.

Shopping iPhone App Scan2List has launched an iPhone App specifically designed for Australian shoppers. Scan2List is a free iPhone App that allows users to create shopping lists either by scanning barcodes of items in your pantry directly onto your phone or manually

adding them to your list. Shopping lists can be saved for future use as well as synchronised with other Scan2List App users in the household. Lists are also easily organised into aisles matching the store floor plan and items are checked off as they are added to the trolley. Kate Cass, Founder and CEO of Scan2List, said the idea was born out of frustration with the usual random household shopping process.

PGA Corporate Cup for businesses will be held the following day followed by lunch and the chance to watch the first round of the championship. The Saurday night championship dinner will feature special guest speakers, leading players from the tournament and hypnotist Zeiken Black. Money raised goes to the Frankston Community Fund. The tournament is hosted by Frankston City. Details: 8320 1980

PGA at Sandhurst

Photo contest

THE Victorian PGA Championships are returning to Sandhurst Club Skye from 10-16 January, 2011. Winners of the tournament include Kel Nagle, Peter Thomson, Bruce Devlin, Mike Harwood, Peter Senior and Stuart Appleby. The public has a chance to play the course during the week of the tournament starting on Monday, 10 January, with the Ladies Swinging Soiree. Thursday will feature the stars playing with the public in the Pro-Am; while The Club Car Victorian

Nearly 200 entries have already lodged for the Focus on Frankston Photography competition which has a $7000 prize pool. On top of the three major prize winners, who will receive $1500, $600 and $150 each for their efforts, there will be a people’s choice award, judges’ encouragement award and photo competitions at four of the city’s major events. Entries close Friday, 18 March, 2011, and photos must be taken within Frankston City municipality. Details: 1300 322 322.

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December-January 2010-11 | Frankston Peninsula BusinessTimes | 17

Expert, Approachable, Respons

THE ARTS

Entertaining offer to arts centre members

Mr Worrythoughts Frankston Arts Centre (FAC) has teamed with children’s theatre specialists to develop a touring production of Go Away, Mr Worrythoughts to help students cope with anxiety and depression. Frankston author Nicky Johnston wrote the book to help her first child Bayley, who was struggling to eat, sleep or laugh because of anxiety. Statistics show that while around 14 per cent of Australian children have mental health issues such as anxiety, depression and behavioural problems, only one in four of those receive professional help. Frankston City Council approved funding for FAC to develop and implement the 50-minute puppet based production of ‘Mr Worrythoughts’, which is expected to tour nationally. Schools are being urged to book the production next year.

FRANKSTON Arts Centre has replaced its subscription-based method of ticket sales with an annual membership offering discounts for next year’s season of 13 performances. The $30 membership covers savings for the theatre season plus discounts to three performances at adjoining Cube 37. Graeme Levy, of Peninsula and Westernport Automatic FAC membership benefits include discounts Gates, discusses next year’s theatre program with Gillian Thompson, the arts centre’s Business Development and of 20 per cent or more for 12 of the 13 season Marketing Manager . performances, preferential booking and seating ties for deaf persons. FAC manager Robin Batt and pre-sale opportunities to all FAC and For all legal services a business and its people need told the annual corporate partners’ lunch 17 nominated non-FAC presented performances. November that a season highlight would be Also, members are offered a defered debit Est. 1954 the performance of Australian playwright Toby payment plan – book tickets now and pay Schmitz’s play Capture the Flag. The play is throughout the year, seven days before each about three young boys huddling in the sewers performance. The varied season features www.whitecleland.com.au as Russian tanks roll into Berlin in 1945. eight plays, the Melbourne Comedy Festival Members will pay between $18 and $80 to Roadshow, Melbourne Symphony Orchestra, see performances next year with most plays Victorian Opera and a David Hobson-Teddy 454 Nepean 9783 2323 costingHwy $40Frankston to $50. Tahu concert. Also returning for theLevel third 3, year Membership forms are available at the arts is Unspeakable, where comedy gets the silent centre, DaveyMelbourne St, Frankston, treatment. Proceeds of this show of physical Level 8, 256 Queen Street, 9602phone 4022 9784 1070, or visit www.artscentre.frankston.vic.gov.au comedy will help create further arts opportuni-

Wishing all a Merry Christmas and a Prosperous New Year from the MBA Team

Expert, Approachable, Responsive

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ExPERT, APPRoAChABLE, RESPonSIvE • Business Law • Commercial Litigation Est. 1954 • Copyright, Trade Marks & Patents • Corporate Acquisitions & Sales www.whitecleland.com.au • Corporate Counsel Services Level 3, 454 Nepean Frankston 9783 Trade 2323 • Hwy International & Relationships • Business Debt Recovery Level 8, 256 Queen Street, Melbourne 9602 4022 • Commercial Property & Leasing • Defence & Government Contracting • Employment Law For all legal services a business and its people need

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18 | BusinessTimes Frankston Peninsula | December-January 2010-11

454 Nepean Highway FraNkstoN Level 8, 256 Queen street MeLbourNe mail@whitecleland.com.au

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M = Member, F = Full, C = Concession, U26 = Under 26 years, U16 = Under 16 years, D = Daytime Matinée, G= Group 10+

The Housekeeper: “Hilarious” Wednesday 23 February – Saturday 26 February Tickets: M $30, F $36, C $32 Breast Wishes: “An Uplifting Musical” Wednesday 16 March & Thursday 17 March Tickets: M $40, F $51, C $47, U26 $26, D $44, G $42 ea Tuesdays with Morrie: “Inspirational Comedy” Friday 1 April & Saturday 2 April Tickets: M $40, F $51, C $47, U26 $26, D $44, G $42 ea

Unspeakable: “Comedy gets the silent treatment” Monday 4 April Tickets: M $18, F $26, C $18, U16 $10 Melbourne Comedy Festival Roadshow “A feast of in-your-face laughter” Sunday 1 May Tickets: M $30, F $36, C $32

Rainbow’s End: “Australian Drama” Tuesday 10 May & Wednesday 11 May Tickets: M $40, F $51, C $47, U26 $26, D $44, G $42 ea Capture the Flag: “Gripping & Intelligent” Tuesday 7 June Tickets: M $40, F $51, C $47, U26 $26, D $44, G $42 ea

Julius Caesar: “Relentlessly Modern” Tuesday 26 July Tickets: M $55, F $66, C $62, U26 $26, G $54 ea

Krakouer! “More than a footy tale” Tuesday 9 August & Wednesday 10 August Tickets: M $40, F $51, C $47, U26 $26, D $44, G $42 ea

Melbourne Symphony Orchestra “Classic Baroque; Marvellous Mozart” Thursday 22 September Tickets: M $40, F $51, C $47, U26 $26, G $42 ea

Often I Find that I am Naked: “An Outrageous Comedy” Thursday 29 September & Friday 30 September Tickets: M $30, F $36, C $32

Victorian Opera: “The best of everything” Friday 21 October Tickets: M $55, F $66, C $62, U26 $26, G $54 ea

David Hobson & Teddy Tahu Rhodes “Australia’s favourite tenor & bass-baritone” Friday 18 November Tickets: M $80, F $89, C $82

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Issue 2010 | LocationBusinessTimes | 19

NEWSWHEELS

Changes to the exterior of the latest Mercedes-Benz S-Class are minimal, but yet manage to give it a quite different appearance.

The flagship of the Mercedes-Benz range, the S-Class saloon, received a major makeover late last year and we have just spent a most pleasant week wafting around in this 2010 model. ‘Wafting’ is certainly a word that comes to mind when you drive this big Mercedes. Cocooned in the superb, multi-adjustable front seats and shielded from the outside world by the latest technology that minimises automotive noise and vibration, there’s a feeling of being in a mobile lounge room. A feeling that’s highlighted by the high quality of materials used, the space and the ambiance. However, there’s less legroom in the rear seat than

The Perfect Christmas

Ewen Kennedy Motoring Journalist

we had expected in a car of this size. You don’t feel cramped back there, but a bit more stretch room would be appreciated. Should you really need a large back seat you can also specify the S-Class in long-wheelbase format for an extra $18,000. Though the new cabin follows the same design theme as the original, the stylists have increased the size of the timber and/or alloy highlights and added a range of additional hues to the options of

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29 Tyabb Road MoRningTon 3931 Phone: (03) 5973 9688 20 | BusinessTimes Frankston Peninsula | December-January 2010-11

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Mercedes S350

taillights are particularly interesting, featuring LED illumination in an interesting ‘double-C’ design. Daytime running lights are now standard on all models. Running horizontally in the lower sections of the front spoiler they give the car an elegant look as well as improving safety during low-light conditions. Despite these apparently minor alterations to the overall shape of the S-Class, the Mercedes stylists have managed to give their big saloon quite a different look. The ‘S’ now looks wider and slightly lower than previously, perhaps even a bit bolder.

Midlife makeover

2010 Mercedes-Bemz S-Class model range: S350 CDI: $214,900; 350: $214,900; 350L: $232,900; S500: $289,900; S500L: $307,900; S63 AMG: $380,900; S600L: $402,900; C65 AMG L: $482,900

FEATURES Standard features include ABS brakes, air conditioning, auto transmission, CD player, central locking, cruise control, dual front airbags, front side airbags, stability control, traction control.

SPECIFICATIONS

The engine and transmissions remain as in the just superseded model. Our road test car had a V6 petrol engine with a capacity of 3.5 litres. There’s also a 5.5-litre V8 in the specifications list and as revheads we love the latter powerplant, but, to be honest, the 3.5-litre provides more than enough performance for the great majority of buyers. Petrol consumption will usually be in the 10 to 12 litres per 100 kilometre range in suburban driving.

S350 3.5-litre petrol four-door sedan) ENGINE: Capacity: 3.498 l.; Configuration: V6; Head Design: DOHC, four valves per cyl. Automatic Transmission: Seven-speed

PERFORMANCE: 0-100 km/h Acceleration: 7.3 seconds

FUEL CONSUMPTION: Type: Petrol 95RON Combined Cycle (ADR 81/01): 9.8 L/100km

A Daimler Brand

the leather trim. The most fascinating thing inside the big Merc isn’t the latest styling, but the use of interior lighting to create a variety of ambiences that can be set to match the occupants’ moods. External styling has also received a revamp to freshen it up as part of the midlife makeover. Changes have been restricted to the styling of the headlights and taillights as well as to the shape of the bumpers and the door mirrors. The

AT A GLANCE

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December-January 2010-11 | Frankston Peninsula BusinessTimes | 21

HEALTH

Fever can be a friend, not a foe What do you do when running a temperature? Reach for the paracetamol, perhaps? Why not? It seems to have become pretty much standard home-medical advice. Kid’s running a fever: pass the paediatric Panadol. Or maybe you’re coming down with the flu, but you’ve got a lot on. Can’t really afford time off to rest and recover. Mountain of work to do; household won’t run itself. We all know the story. So reach for the Panadol, and the cold and flu relievers from the chemist. Many over-the-chemist-counter cold and flu remedies contain paracetamol, which is both analgesic (pain reliever) and antipyretic (fever reducer). It’s a useful drug. As well as relieving pain, it can quickly bring down a dangerously high fever. But what’s with swallowing this drug willy nilly whenever someone has a bit of a temperature? Let’s think about that. Aren’t you undermining your immune system’s response to the pathogen? After all, the fever is not the disease. It’s the healthy bit. It’s your body fighting back, raising the temperature of the internal environment to make life untenable for the invader. In Western terms, elevated body temperature inhibits viral replication and enhances immune T-cell production. A normal temperature is 36 to 37.2 degrees. An elevation of half to one and a half degrees amounts to a mild fever. A fever is not dangerous – in that it can start damaging the body – until it reaches 40 degrees (although in children anything over 38.5 requires close attention). Even then, the resulting dehydration can be countered and convulsions, while alarming, are generally not harmful.

Michael Ellis*

Chinese Herbalist

Of course, antipyretic treatment is necessary in some circumstances, but rarely if ever in a mild fever. Your immune system is like the poker player who sees his opponent’s bet, then raises the stakes. “I’ll match your viral infection with a bunch of my white blood cells … and raise you one degree.” Now, if we swallow a Panadol at this point and cool things down, what are we doing? Stacking the deck in the pathogen’s favour, that’s what. Folding our aces and letting the bluffer take the pot. OK, I’m stretching the metaphor, but in effect we are increasing the likelihood that the illness will take a grip and be more protracted than necessary. Or worse, creating the environment for a lingering pathogen, one that is incompletely dealt with by your body and ends up lurking deeper in your system, waiting to break out again the moment your energy runs down. (Those lurkers, by the way, generally take one of two forms. The first are the colds that come on without warning. Go to bed fine, wake up with a full-blown cold with none of the usual precipitating symptoms. The second are those that linger as low-grade fevers, sore throats and continuing fatigue, draining your resources between acute outbreaks.) Men cop a fair amount of flak about their

22 | BusinessTimes Frankston Peninsula | December-January 2010-11

typical response to colds, apparently turning into pathetic wooses incapable of looking after themselves and requiring inordinate amounts of TLC. “He’s got man flu,” declares the unsympathetic missus. Well, here’s one for the men: “man flu” is far, far better than the alternative. Soldiering on, diverting energy away from the battle, especially while taking drugs that mask symptoms and reduce your body’s capacity to fight back, simply makes it more likely that you will be sick for longer, and that you may not shake the pathogen at all. Actually, this is one concern that Chinese medicine has with vaccination. This vexed subject requires a year’s worth of Times columns, but suffice to say that vaccination involves introducing inert pathogenic material directly into the deeper layers of the body, bypassing the usual outer defensive layers. The idea is to provoke an immune response, so that the immune system is battle-ready should it encounter the live pathogen at some future time. But part of that provocation may involve the body generating a fever. It’s usually mild, and short-lived, but the standard advice is to deal with any feverishness by administering Panadol. We think this is inviting trouble. Provoke the immune system into action, then immediately tie one of its hands behind its back. In Chinese medicine, we worry that this is a perfect way to create a lingering pathogen in the deep levels of the body. One more thing about paracetamol. It is a strong drug, and like all drugs has consequences for the liver, the organ that must break it down and begin the process of eliminating it from your system. It has still greater consequences for the immature livers of children. I’m not up for a debate with drug companies over the safety of their products – there’s plenty of material about that online – but I am prepared to question our willingness to take fever-reducing medicines at the first sign of an elevated temperature. It stems from a typical misconception – one of many – that fever is a symptom of illness and therefore a bad thing. Fever is not a bad thing. Fever is your friend. * Michael Ellis is a registered Chinese herbalist in Mt Eliza: www.mtelizaherbal.com

Crowder House Car parking needs to be tackled so Frankston “can play its part in Melbourne’s growth”. He believes St Kilda Football Club’s new headquarters should have been built at Baxter Park – close to Peninsula Link and recycled water – instead of Belvedere Park in Seaford. “Frankston Football Club could have gone to Seaford and the aquatic centre built at Frankston Park,” he said. “The land designated for the aquatic centre next to the TAFE at Samuel Sherlock Reserve should be kept for educational purposes.”

13 tv

Crowder said he had “been tempted” to seek election to Frankston Council but believed businesspeople were presented with a conflict of interest because of having access to inside information. He now serves on council’s CAD Dsign Review Panel. “You shouldn’t take advantage of that sort of information, but it restricts lots of businesspeople [from becoming involved].”

Chopper sold SOUTHERN Peninsula Rescue Squad has sold its single-engined helicopter for $900,000 and its above ground fuel tank for $25,000. Taxpayer funds were used to buy the helicopter in 1994 after the squad’s first one

crashed into Port Phillip. The squad put the chopper on the international market in early June for $US1.5 million (then $A1.83 million) through Sydney-based broker Heliflite. Squad president Eileen Murray said a depressed aircraft market, rising Australian dollar and sale costs had contributed to the lower figure. About $400,000 of the proceeds will be used to buy a second rescue boat to join the squad’s New Zealand-built Stabicraft. Money remaining after buying the boat and upgrading computer and communication systems at its Sorrento Park headquarters will go to Sorrento CFA, Sorrento SES and other groups yet to be decided.

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www.peninsuladigital.com.au December-January 2010-11 | Frankston Peninsula BusinessTimes | 23

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