March (Greater Dandenong) by Keith Platt

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CONTENTS

who/what/where

Features

Bizzquiz Busy Bites News: New plaza, street link News: Libs to fast track port Retail: A convenient report Arts: Drum Theatre feature Business Directory

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BusinessTimes (Greater Dandenong region) is published 11 times a year by BusinessTimes Pty Ltd and printed by Galaxy Print & Design, 76 Reid Parade, Hastings, Victoria 3915. Postal: PO Box 428, Hastings, Victoria 3915 Tel. 035979 7744 Fax. 035979 7944

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Kluger A bold revamp for smaller 4WD

Are you in BusinessTimes? For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au Make sure every business knows your business. DISCLAIMER: Information in BusinessTimes contains general advice only. No article or column has been prepared taking into account any individual reader’s financial situation, investment objectives or particular needs. Readers should personally consult professionals for advice on any matter, including investment, health and the law. While all care is taken, BusinessTimes accepts no responsibility for errors or omissions in the published material. Views expressed are not necessarily those of BusinessTimes Pty Ltd. All content is copyright.

Housing plans knocked APPLICATIONS to build four dwellings on sites in Noble Park and Dandenong have been knocked back by Greater Dandenong council. Council agreed with Cr Peter Brown that the developments at 176 Buckley Street, Noble Park, and 10 Cullimore Court, Dandenong, were overdevelopments even though council officers recommended that permits be granted for both. The Buckley Street proposal was for three double storey dwellings and one single storey. Four double-storey dwellings were proposed for the Cullimore Court site. As well as being overdevelopments, Cr Brown argued the proposed buildings were inconsistent with the residential character of the area.

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news

Austal lands US combat ship contract

METROPOLITAN Plant Hire has again won a $400,000 annual contract for Greater Dandenong council parks and civil work. Metropolitan has provided the same service to council over the past five years. The contract includes two 12-month extension options at council’s discretion.

Jobless rate down Austral’s Littoral Combat Ship.

He nailed it when he said “a (contract) win will see Austal in the headlines, but in any event the longer term investor should take the broader view. Austal’s two operating LCS vessels have won rave reviews and the US army is after 12 of its own. Other navies are also interested. Civilian orders are running at $1.4 billion and cash stands at $93million. ... Not bad ingredients for long range growth.”

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Australia’s unemployment rate remained at five per cent at the end of January. Victoria’s December jobless rate at 4.9 per cent was less than the national figure and down from 5.5 per cent in November. Full time jobs fell in January while part time jobs increased. Overall less hours were worked.

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PERTH-based shipbuilder Austal Ltd will share a US combat ship contract with Lockheed Martin, each building 10 littoral combat ships (LCS) to be delivered between now and 2015, the US Navy announced early December. Austal’s initial contract is worth about $432 million with an option to build nine more vessels. The warships will be built at Austal’s shipyard in Mobile, Alabama, and result in the company more than doubling its workforce to 3800 employees. Back in August our stock market analyst Richard Campbell flagged Austal as a consideration for the long horizon investor, citing the contest with Lockheed Martin for the LCS contract as a defining point in the company’s long term prospects. In August Austal’s shares peaked at $2.82 then dipped to $2.36. When the billion-dollar contract was announced, Austal was trading at $3.53. February 28 the stock had slipped to $2.90, however Campbell’s main concern was ferreting out a durable growth story, like another couple of Aussie successes Cochlear or Computershare.

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March 2011 | Greater Dandenong BusinessTimes | 3

markets

Cash starting to flow the right way After three years of financial tremors, global markets are moving into a consolidation phase. The big trading blocs – Asia, Europe and the USA – are either growing strongly or beginning an expansion phase as hirings pick up and debt is retired. Some are now even forecasting four per cent growth in the US. This is the relief we need. In March last year Dun & Bradstreet reported that almost half of Australian firms were operating on negative cash-flow with banks unwilling to help out. This has reversed. The banks are now all smiles and handshakes. Our national cash flow is also improving rapidly. When iron ore is fetching $150 - $170 a ton, it is a far cry from the $55 to $60 of only four years ago. The gain in coal and copper prices is equally steep with the three big earners providing an avalanche of cash for the mining giants. Rio’s $14 billion profit had a Scrooge McDuck ring to it. Generally, balance sheets are in much better shape thanks to hefty rights issues and restrained dividends, but there is still a distinct mood of caution. China’s curbs on bank lending over the past six month plus the February interest rate rise has clipped the mining sector and seen the market look again at the conventional stories. Boral’s result seemed like hearing vinyl again. Boral, upbeat? That’s a golden oldie. But an underlying mood of caution prevails. Consumer confidence may have turned up, but it isn’t translating into standard retail sales. The high $A is luring

Richard Campbell* Stock Analyst

even the not so wealthy to foreign shores and of course on-line retailing is taking an edge of the remaining sales base. Myer’s profit guidance came as a shock. Myer is back where it was before immediately after the float and it is hard to think of compelling reasons to buy. Even the strong headline profits of the banks were not quite what they seemed. NAB’s 18 per cent lift and CBA’s 12 per cent owed a lot more to write-backs than to higher sales. To be picky NAB’s credit quality overall fell slightly as its UK banks had higher loan impairment and CBA’s core profit – total income less expenses – was up just two per cent. However, both lifted dividends and set the scene for a positive year for investors tired of rights issues and share purchase plans. Isn’t the money flow supposed to go the other way? In the case of BHP and Rio, the tide has certainly turned: Rio’s $5 billion share buy -back is value accretion on steroids. The CBA presentation also included

4 | BusinessTimes Greater Dandenong | March 2011

Production of Mesoblast’s specialist adult stem cells. the news that stay-at-home CBA is now following ANZ into Asia. It put its toe in the water last year with investments in Vietnam and Indonesia, but now is opening branches in China. In fact, if there is an over-arching theme for the year, it seems to be a deepening of Australia’s integration into the region. Every second metals company now has a Chinese partner; the next stage will be Aus-Indian deals, certainly in coal, but increasingly in bio medical sector. India is now not only a global IT hub, it has some of the biggest manufacturing labs in the world. Local biotech is certainly worth study this year. Mesoblast’s amazing deal with Cephalon has captured market imagination – a new Cochlear may be emerging. Sirtex and Resmed did well all through the GFC and others like Nanosonics are emerging. It is waiting for an FDA decision on its probe steriliser. So a year of consolidation, cash-flow, dividends and possibly several rewarding take-overs, but looming overall is the issue of climate change and a carbon price. Big business is reluctantly supporting action after the severe Russian drought last year, China’s drought this year and the worst floods in our history. The crunch time is near: 2011 may be the year we join the dots. Disclaimer: The writer indirectly holds shares in Mesoblast. •Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. email: rcampbell@peninsulacapital.com.au

NEWS

Online and out there WHILE the federal government has successfully put off making a decision over adding GST to overseas online purchases below $1000, there has been no let up in the war of words by potential winners and losers. The Retail Coalition of retail heavyweights, including Myer, Gerry Harvey and David Jones, continues to warn of job losses. But Australian-based online retailer Kogan Technologies, which stands to lose customers if GST is added, reports sales growth and has spread its activities to the United Kingdom. Owner Rusian Kogan has called the big retailers’ bluffs, challenging them to public debates and welcoming the government’s Productivity Commission inquiry, which is not expected to hand down its findings until the third quarter of 2011. His company’s PR team is also busy releasing details about its customer base.

Head count NO matter where you spend the night on Tuesday 9 August, the federal government wants to know. The night has been earmarked for the next census of population and housing by the Australian Bureau of Statistics (ABS) – its five yearly snapshot of the number of people in Australia, their key characteristics and the dwellings in which they live. Foreign diplomats and their families are the only ones not required to be counted. Visitors to Australia are included in the census regardless of how long they have been in the country or how long they plan to stay. About 43,000 part time and casual workers will be hired to conduct the census. Applicants can register their interest at www.abs.gov.au/census.

Volunteer is top citizen DANDENONG Hospital volunteer Ruth Hartnett has been named Greater Dandenong’s Citizen of the Year. Mrs Hartnett, now in her 80s, was recognised for her work work with the hospital’s ladies auxiliary – her fundraising activities and her role as a support and guide to patients. Passionate about helping people, Ruth shows no signs of slowing down despite advancing years. Kalyan Ky was awarded Young Achiever of

One of the latest news releases says analysis of 2.5 million visitors to the online store shows most shopping is done between 1-2pm, suggesting Australians log on “while at work, during or immediately following their lunch breaks”. Friday is the busiest day of the week and in the second half of 2010 traffic from mobile devices increased by 363 per cent over the previous six months, with iPhones and iPads accounting for over 70 per cent of mobile traffic. The most popular email provider was hotmail. com with 50 per cent of the store’s visitors using Internet Explorer. Firefox came second with 27 per cent, followed by Safari 11 per cent and Chrome 10 per cent. The analysis revealed some trivia: The five most popular names of online shoppers were John, Peter, David, Michael and Paul. Karen was the most popular female name.

the Year; Raymond Johnston, Good Neighbour of the Year and Barbara Siddall, Non-Resident of the Year. Kalyan Ky, 22, involves herself in countless community projects encouraging young people to participate in community affairs and life. Her involvements include the Ethnic Youth Council, the Asia-Pacific Youth Network, Creative Voices, and she also serves on the government’s advisory board for multicultural affairs. Good Neighbour Raymond Johnston has committed hundreds of hours researching the history of Noble Park and Keysborough, generously sharing his knowledge with local school students and new arrivals. Barbara Siddall might not live in Greater Dandenong but has committed more than 20 years of her life to easing the load of struggling families in this city through her work with support service Cornerstone. Barbara’s efforts help feed the hungry, comfort the lonely, and help those in need to develop new skills to improve their lives. Young Achiever of the Year Kalyan Ky, 22, of Keysborough. Photo: Ted Kloszynski.

n Bizzquiz

Pragmatic Training founder and CEO Sean Farmer loves success stories, especially those where people have prospered despite adversity. His book Leading like Crazy - Journey of a Leader documents about 100 ideas and leadership “tools”. His responses to Bizzquiz... I dreamed of being ... A botanist. As a child I experimented to work out what makes a plant thrive. My first paid job was ... Mowing lawns, weeding, sweeping and calling bingo numbers at an aged care home for $25 a day. Our business planning entails... Master plans that set down outcomes and goals that flow into our budgets and cash flows. Tip for success ... Employ managers and senior staff who have a passion for the business, add value and have integrity. I am inspired by … Anyone that “hangs in there”. Anyone starting a business should ... Take their time. Think and plan before jumping in. I’ll know I’m successful when ... I already feel blessed...  My parents always told me ... No good comes from ill-gotten gains. Don’t deal with crooks and don’t do a deal that is not satisfactory to the other party. I wish I had ... Invested in Google when it first listed. I wish I had not ... Dealt with people that do not understand the principle of reciprocation.

March 2011 | Greater Dandenong BusinessTimes | 5

BUSY bites

Aerospace lift-off

Quick growers TOTAL revenue of Australia’s 100 fastest-growing companies leapt 47 per cent in 2010 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 of 2010 – nine of them climbing into the Top 10

AEROSPACE research delivered the biggest percentage increase in patents across 12 technologies last year, according to Thomas Reuters 2010 innovation report. The report covers major technology areas using the Thomson Reuters Derwent World Patents Index(R) (DWPI(SM)) database Aerospace technology patents jumped 25 per cent from 2009 to 2010. The largest aerospace subsector increase year over year occurred in the field of space vehicles and satellite technology, which jumped 108 per cent. The three companies in this area were Japanese manufacturer Sharp, followed by Korean manufacturers LG and Samsung. Semiconductor innovation saw the largest drop in innovation activity across the 12 areas, falling nine per cent. Computers and peripherals tops the list of the most innovative technology areas with the highest volume of patent activity for second consecutive year, despite an overall decline from 2009. The computer technology area published 212,622 unique inventions in 2010. The study tracks unique inventions within the categories of aerospace, agrochemicals

Consumers twitchy 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 seasonally-adjusted 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.

march 2011

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nong Greater Dande business:

Open house for internet super fund MELBOURNE-based online self-managed super fund advisor e.superfund has launched a loan service enabling clients to borrow using their self- managed funds to invest in residential property. The online company is taking advantage of recent changes to superannuation laws giving SMSFs the ability to spread their Investments. In the past SMSFs wanting to invest in residential property needed to have the entire proceeds in cash, including all upfront costs such as stamp duty. Being

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Australians spend record dollars on kitchens and bathrooms Australians are demanding more luxurious kitchens and bathrooms, with a report from the Housing Industry Association predicting the value of K&B installations and renovations will hit a record $12.3 billion by 2011/12. The HIA Kitchens and Bathrooms Report highlights the amount of money Australians spend each year on new and renovated kitchens and bathroom and the state of industry activity. Kitchen industry In value terms, the kitchen industry was worth $6.9 billion in 2009/10, which represented a strong lift of 9.2 per cent on the previous year. There were 509,400 kitchens (new and renovated) installed by Australians in 2009/10 that’s an increase of 7.5 per cent on the previous year. The report predicts the value of kitchens will rise to $7.6 billion in 2011/12. Bathroom industry The bathroom industry also grew strongly last year. The report found it was worth $4.2 billion in 2009/10, which represents a 10.9 per cent increase on the previous year. The number of bathrooms installed (new and renovated) was 711,200 - an increase of 9.2 per cent on the previous year, said HIA chif economist Dr Harley Dale. “There is likely to be a very moderate decline in bathroom installations in 2010/11, due to weakness in the new home market,” Dr Dale said. “That having been said, we are still expecting a total of 704,600 installs this year and 705,200 installs in 2011/12.” The report predicts the total value of bathrooms will increase to $4.7 billion in 2011/12. What’s hot and what’s not The report also included survey responses from hundreds of small to large businesses in the K&B industry, detailing the average cost of

new installations and the types of materials and appliances consumers are demanding in their kitchens and bathrooms. The survey reported the following trends in the types of materials and fittings consumers are opting for in their kitchens and bathrooms: Benchtops: Engineered and stone benchtops were most popular followed by solid surface benchtops and granite benchtops. There was a decline in use of stainless steel, concrete and timber benchtops. Door types: Two-pac polyurethane or colour painted doors, followed by low pressure laminate doors, were more popular in 2010. Glass doors and vinyl wrap/vacuum formed doors also increased in usage. On the way out, were roller shutter doors, natural timber doors, and timber veneer doors. Splashbacks: Glass and engineered stone splashbacks are in. Granite and tiled splashbacks are out. Perspex coloured splashbacks and acrylic splashbacks also declined in use. Tap ware: Budget tap ware and insinkerators are no longer in vouge. Over the past year, the fastest growth was in lever tap ware followed by multiple sinks and taps in bathrooms and premium tap ware. Sinks: Under-mount sinks continue to be the fastest growing sink, but there was also an increase in use for double-bowl sinks and square-form sinks. Water filtration systems are becoming much more popular. But on the way out are solid surface sinks, round bowl sinks, and single bowl sinks. Drawers: Soft closing drawers and deep and wide drawers for pots and plates are now hot. Opening door and drawer systems (included for the first time this year), and concealed garbage bin/disposal units are also popular.

Smaller lenders gain home finance seekers are increasingly turning to smaller lenders because they can often get 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 final three three months of last year. Rushton said that 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 ... finding competitive offers from smaller lenders.

Naming rights WHILE trying to snare deals on the internet is the equivalent of casting a very wide net, there is at least one method that can bring lucrative results – selling domain names. Online discounter Zoupon shelled out $100,000 for a new name, Deals.com.au, which managing director Jeremy Same said that he believes “is easier for users to remember, and better describes what the company does”.

Encore Hotel to come

March 2011 | Greater Dandenong BusinessTimes | 7

INFRASTRUCTURE

Super clinic bid A MEDICAL centre under construction in Stud Road is tipped for a $500,000 government grant to create a ‘super clinic’ with extended hours, specialists, bulk-billing and a chemist. The two-story 30-room clinic, approved by council last July, is on a shortlist for a federal primary care infrastructure grant. Dandenong Superclinic, expected to open in the second half of 2011, will operate 9am-9pm seven days a week. The new clinic will replace Dandenong Surgery on the opposite side of Stud Rd, adding a pharmacy, on-site pathology and more specialists. Dandenong Surgery is among three medical centres shortlisted for funding. GPG GP Clinic in Dandenong has applied for $300,000 and Hill Medical Clinic in Noble Park has asked for $498,758 to upgrade to ‘super’ status.

Apartment plan

PLANNING Minister Matthew Guy visited central Dandenong late February to announce construction of a new public plaza and street to better link Dandenong Railway Station and the city centre. Community feedback in the development of the Revitalising Central Dandenong project suggested the need for a more logical and welcoming station-to-city centre link. “The Revitalising Central Dandenong initiative is about increasing the number of homes and jobs in Dandenong through well planned urban renewal,” Mr Guy said. He said the new Coalition state government would make sure the necessary infrastructure “is in place to support an increasing number of workers, residents and visitors going about their daily lives in central Dandenong”. “These projects will deliver a safer, well-lit and pedestrian-friendly connection that encourages people to use public transport and walk to central Dandenong’s main retail and commercial office area,” Mr Guy said. With working titles of Station North Plaza and City Street, the concurrent projects will be completed late this year.

Features include:

• New street frontages for future buildings constructed on previously acquired VicUrban land, including the Government Services Office building under construction • An iconic 28 metre light tower as the centrepiece of the 1200m2 public plaza • 66 new trees

• Granite footpaths • 17 new short-term car parking spaces • A 10kmp/h speed limit for vehicles entering the shared pedestrian and vehicle zones along City Street • A 15,000 litre underground water tank to capture stormwater for re-use in watering the new trees and plants City Street will be a shared pedestrian and vehicle zone, with Walker Street to its north, Thomas Street to its east, Foster Street to its south and Ruddock Street to its west. Station North Plaza will be located at Robinson Street, and people arriving in Dandenong by train and bus will exit the station, cross Foster Street and find themselves in the Plaza, which will link into City Street. VicUrban’s General Manager of Urban Revitalisation, Dominic Arcaro, said the concurrent projects were part of broader improvements to traffic and pedestrian flow in and around central Dandenong. “Better connections will encourage more job-creating businesses to locate to currently underutilised land north of the railway station,” Mr Arcaro said. Preliminary City Street works have started on vacant land near Ruddock Street. Station North Plaza construction activity will start soon in Robinson Street (north of Foster Street). A section of Robinson Street, south of Walker Street, will be upgraded to provide a link between City Street and Walker Street. Regular construction updates are available at www.revitalisingcentraldandenong.com

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A $6.5 million central Dandenong block will be redeveloped as apartments, according to buyer Emad Farag. The 9000 sq. m. block hemmed by Foster and Clow Streets and Stud Road, was owned by DandenongCranbourne RSL. It failed to sell at auction in 2010. Farag, a district developer, said that subject to VicUrban approval he would build either a low-level complex or towers with parking and shops and cafes at ground and basement levels.

New plaza and street to link Railway Station and CBD

8 | BusinessTimes Greater Dandenong | March 2011

New life for the Brotherhood Brotherhood of Laurence settlement residents will have new homes when the 17.3 ha Carrum Downs site is redeveloped as 241 dwellings in four stages. Frankston City Council approved Lodden Mallee Housing Service’s redevelopment in early December. The settlement’s 1946 original chapel and a representative group of some of the more intact examples of the 1940s-50s fibro cement cottages will be retained Also remaining will be the community church, respite centre and maternal and child health care centre. The settlement was started in 1935.

Who’s planning now? Above: Aerial photo showing the locations of Station North Plaza and City Street, linking Dandenong Railway Station (centre foreground) to the heart of the city. Left and Below: Artist’s impressions of the plaza and City Street.

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AN RMIT study in December came to the conclusion everybody already knew – despite government intentions and policies, it is developers who guide Melbourn’e growth. The study targeted two big planning policy changes – Kennettt’s standardised Victorian Planning Provisions, ironing out planning differences between councils, and Bracks’ Melbourne 2030, designed to stall urban fringe development and increase density in existing suburbs. The study revealed that neither policy had any impact. In fact, McMansions still reign supreme on the urban fringes.

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COVER STORY

A NAME

S a child growing up in the industrial city of Birmingham, UK, I knew how to get home. Jump on the Midland Red 15B bus and it would go straight past the house. I was younger then and living in a world where it wasn’t unusual to see kids traveling alone. Years later, as a teenager in Frankston, the best way home was to catch the yellow bus with red stripes, the one that plied the main road to Dandenong. Jump on it anywhere in central Frankston and the Grendas Bus Services vehicle would eventually head north towards Dandenong and home, which was in the Pines Housing Commission estate. Catch a bus with black livery and it would go east towards Cranbourne, blue went south, down the Mornington Peninsula. Some things never change, and so it seems with public transport in the southeast. Grenda’s is still the major bus line between Frankston and Dandenong and the blue ones, Portsea Passenger Services, still go south, although the Grenda Corporation now owns them. Grenda’s has grown some since the 1960s when its sole route south was along Frankston-Dandenong Rd. Still Dandenong based, it has upwards of 3000 employees, runs bus services and builds buses here, interstate and overseas. It has shares in a bus manufacturing factory in Abu Dhabi where it is also awaiting the outcome of a proposal to run the bus system. Grenda’s remains family owned and run, with grandsons of founder George Grenda, Scott and Geoff Grenda, holding key positions in the company. Managing director Scott says the company shed itself of some non core activities and regrouped in the late 1990s. The introspection followed a fierce court battle in the wake of state government policies which capped bus fares. Ultimately, the litigation paved the way for a stronger company, keenly focused on running and building buses. Grenda’s was acknowledged by its competitors as an industry leader and in some ways was later rewarded by them for being willing to take the brunt of the action.

10 | BusinessTimes Greater Dandenong | March 2011

ON THE MOVE Words/images: Keith Platt

“But it nearly ruined us,” Scott Grenda says. Never turning its back on its beginnings in Dandenong, Grenda’s is part of the VicUrban-led renewal program, moving to new headquarters in March 2008 on the periphery of the redevelopment area after some tough negotiations led to it relinquishing its original depot in Foster St. The new building and depot in Cheltenham Rd is one of four Grenda premises in the city, including the manufacturing arm, Volgren, in Hammond Rd. Brands operated by Grenda’s include Cardinia Transit, Invite, Moorabbin Transit, Peninsula Bus Lines, Portsea Passenger Service, Path Transit (Perth), SouthLink (Adelaide), Transit Plus (Adelaide) and Volgren. Scott Grenda has followed in his father, Ken’s, footsteps and taken on an advocacy role for the industry as chairman of the Bus Industry Confederation. “Transport is the second largest producer of carbon, but buses only produce one per cent of the total – cars are 65 per cent. So you can see increasing the number of buses 10 times only increases carbon production by that same amount but you carry many more people more efficiently.” Scott lives with his wife and three children in a comfortable bayside suburb but volunteers that such a setting close to a railway station is more ecologically suited to high rise apartments. He said government support for public transport rose and fell with the times “and it’s only in the past five or six years they’ve got re-interested in buses. There will be a fuel price spike and demand over the next five years will be dramatic. More efficient public transport is also the only answer to congestion on our roads. We can’t just keep building new roads”. He said a government “at some stage” is going to have to bite the bullet and close down entire roads while it replaces railway crossings. “There’s no way you can run more trains and keep boom gates, you’d be stopping traffic every few minutes, and that would be constant gridlock.”

Grenda’s managing director Scott Grenda at work at the company’s new offices and depot in Cheltenham Rd. Dandenong. The bus comapny’s new headquarters are part of the city’s $290 million revitalisation.

He said the government would have to provide new “park and ride” areas so passengers could drive to the nearest railway station. Scott started at Grenda’s in 1990 after fulfilling a rule that “you work somewhere else before entering the family company”. Father Ken had always thought his children would “come through” the company after he took over the reins from his father, George, in the 1950s. To an outsider the Grenda’s story appears to be one of continuing strong growth, acquiring smaller bus companies, extending bus routes, manufacturing buses and forging links with overseas companies. But Scott is quick to point out the worst times – two decades of hardship – which saw the company and its competitors face down the state government over the right to set and vary fares to keep pace with costs. Restrictive government policies meant that it must approve any changes, severely limiting companies’ ability to expand, buy new vehicles or maintain existing fleets. As a major company Grenda’s was seen as leading the charge on behalf of smaller companies. Scott remembers the time as a “tough patch” where the bus lines were “a bit like the Monty Python sketch where the knight was fighting without arms or legs”. “The whole industry was in the same position. The government wouldn’t allow new buses to run and our orders went from 100 to 12. “We were pretty much down to bare bones in the end, even though at the end it was a win.” The win, was a change in government attitude that allowed bus lines to tender for routes and receive payment from the government. “I started here in June, 1990, and the thing was fixed by December. The place was like a morgue, it was a good grounding.” As soon as the new rules were agreed, bus companies saw their way clear to order new vehicles and Grenda’s, through its manufacturing arm Volgren, saw orders jump from three in 1990 to 80 the next year. “People were repaying the support they’d received from dad.” Bus companies have allotted areas and routes and only compete for contracts when new areas are opened up for service. “All gloves are off when a new area comes up,” Scott says. March 2011 | Greater Dandenong BusinessTimes | 11

UPDATE

n Carbon price: PRIME Minister Julia Gillard wants the controversial carbon price to begin 1 July next year, according to The Australian. The article said Ms Gillard insists that coal and electricity industries receive compensation, which is likely to cause a a fight with her minority government partner, The Greens. Ms Gillard was expected to present a plan for a fixed carbon price to operate from 1 July 1, 2012 three years when the regime will move to an emissions trading plan. The catch, according The Australian, is that Ms Gillard would insist on compensation for energy-intensive industries such as electricity generation and trade-exposed industries.

chief sounded upbeat about the longer-term prospects for the economy, highlighting the mining investment boom and strong terms of trade, keeping intact the central bank’s tightening bias. n Technology: NXP Software showed Mobile World Congress 2011 visitors “the future of mobile multimedia”. The demonstrations at The Netherlands congress 11 February focused on new capabilities for mobiles such as fully-fledged HD video editing on touchscreen devices, 3D media playback and audio “close-ups” (ensuring individual voices are clear on video recordings). NXP Software says it is working with Google on multimedia for Android through the Open Handset Alliance, and shared some of its unique know-how at the congress. Meanwhile, mobile phone leader Nokia has announced a broad strategic alliance with Microsoft to develop mobile products. Nokia will adopt Windows Phone as its principal smartphone strategy.

Keeping real estate in the family

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n Interest rates: RESERVE Bank of Australia (RBA) governor Glenn Stevens says interest rates will probably stay on hold until late in the year. His assessment knocked more than half a cent off the Australian dollar and caused a rally in interbank bill futures. The central bank

n In the clouds: US company Nasuni, creator of a storage industry ‘cloud gateway’ reported a 200 per cent growth in customers adopting cloud storage in the final quarter of 2010. Industries with high file growth such as manufacturing, engineering and architecture, law firms, educational institutions, business services and healthcare industries are driving adoption of cloud storage. The expansion of the customer base also marked a twofold increase in the capacity stored with the Nasuni Filer. The Nasuni Filer, a virtual appliance, delivers primary storage from the cloud that is indistinguishable from local storage. Nasuni offers the benefits of cloud storage to businesses by simplifying file access, security, back-up, and disaster recovery while eliminating the expense of hardware infrastructure expansion. “Customer acceptance of our technology shows that primary cloud storage is a mainstream solution that meets the needs of a variety of business users,” said Andres Rodriguez, CEO of Nasuni.

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news

Libs to fast track port

Our Aussie of the year

VICTORIA’S new Liberal state government was quick off the mark in saying it would fast track plans to make Hastings a container port, but has yet to give details about time or cost, reports Keith Platt. Transport Minister Dennis Napthine last month said Hastings would become a “moderate sized working container port as soon as possible”. While not wanting to be “held to any specific 10 years” he expected Hastings to be handling up to two million containers by 2030, about 20 to 30 per cent of the state’s total. First step towards securing the port’s future will be to take its management away from the Port of Melbourne Corporation and give control to a Hastings port authority or corporation. Mr Napthine said this would happen some time this year. Under Labor, plans to develop Hastings as the state’s second major port had blown out to 2035, with pressure being applied to take the cheaper option of expanding Geelong. Mr Napthine has been careful to give assurances that environmental and social impacts will taken into consideration, but has not given any indication that there is anything that would stop the government’s plans for Hastings. He said its plans fit neatly with the federal government’s latest national port strategy and expects the cost – up to $11 billion on previous estimates - to be met by the public and private sectors. “Dedicated rail or truck shuttles” would take cargoes to inland ports such as that proposed by development group Salta Properties at Lyndhurst, south of Dandenong. The government’s intention to take Hastings away from the PoMC almost coincided with the announcement that Jeff Bazelmans would take over from Ralph Kenyon as CEO at Hastings. The PoMC-appointed Mr Bazelmans was previously

general manager environment of the controversial Port Phillip channel-deepening project. PoMC’s CEO Stephen Bradford said he had “no issues” with the government’s decision about Hastings “and will facilitate the handover when it happens”. “We deliberately excluded Hastings [from consideration when planning for predicted increases in container traffic] because the pace of getting it up and running would be too slow.” Mr Napthine in December told Parliament that Labor’s abolishment of the Port of Hastings Corporation had stymied opportunity for development of the port of Hastings. He said Labor had “fundamentally thumbed its nose at the opportunity to develop this beautiful, natural deepwater port”. The PoMC expects to increase its container throughput from about two million TEUs (20-foot equivalent units) at the moment to eight million TEUs within the next 25 to 30 years”. Although the Liberal government accuses the former Labor government of going at a “snail’s pace” in Hastings, the Blue Wedges coalition of environmental organisations says Labor planned within 10 years to build three additional berths for cars and general cargo. “After that, (2020 -2035), major container facilities for international trade would cater for 3.8 million containers per annum and 640,000 cars with 3500 truck trips and 16 goods trains per day. By 2035 Hastings would be pumping out twice the current throughput of the Port of Melbourne, which already works 24/7,” its website says.

Simon McKeon with Prime Minister Julia Gillard at the Australian of the Year ceremony in January.

AUSTRALIAN of the Year Simon McKeon and executive chairman of Macquarie Group’s Melbourne operation still beats a path back to his home town Dandenong. McKeon is the son of the late Charlie McKeon, a chemist in Dandenong. Simon lived in Dandenong until he was 10 and regards his Grade 4 teacher Neil Vague as one of the inspirations of his life, describing him as a kind man who treated pupils as young adults. Mr Vague still lives in the Dandenong area. McKeon may now live in Brighton but regularly returns to speak at his old primary school. McKeon is a member of the Victorian Rhodes Scholarship Selection Committee and chairman of Business for Millennium Development.

Businesses make pleas to city for access and parking

Keep it down

GROUPS of Dandenong traders are asking Greater Dandenong Council for better deals on access and parking. A petition signed by 405 traders, employees, customers and suppliers of businesses in Cheltenham Road (former Brighton Rd), Dandenong, seeks reinstatement of the entry into the northern side of the service road for direct vehicle access to the businesses. Council has sent the petition to VicRoads for review and a direct response to petitioners. When Cr Jim Memeti asked whether council was doing anything to help traders apart from forwarding their petition to VicRoads, engineering

LOUD phone conversations and using speaker phones really annoy office workers, according to the Victorian Employers Chamber of Commerce. VECCI has a list on its website of what annoys fellow workers. Other annoyances include constant complaints about workloads because it happens to everyone at some time and most just get on with it; constantly being late to work; talking to yourself; bad hygiene; and loud eating.

services director Bruce Rendell said road section was controlled by VicRoads. “(It needs) either a change to the existing arrangements at the lights or … a U-turn bay through the centre median,” Rendell said. “Both … require VicRoads approval. Council staff will follow up and make sure it is considered and try to help its way through the VicRoads process …”, Rendall added. A joint letter from six businesses in Langhorne Street, Dandenong, questioned parking time limits in their street. The letter has been forwarded to a council business unit for consideration.

March 2011 | Greater Dandenong BusinessTimes | 13

network news

By Tony Murrell HERE’S an admission: I don’t do Facebook. Neither am I a twitterer or twit (or is it a tweeter?). Not only does the language elude me, I remain bewildered by the rate at which the “F” book phenomenon is spreading its digital tendrils. If the technology wasn’t around when svelte Emma Peel banged up the baddies in The Avengers, then chances are I haven’t tumbled to it. Imagine Facebook as a virus (it isn’t, is it?) – all those computers linked to the world wide web would be in a bit of bother. I, for one, would be smug about having kept the landline connection. Until someone pointed out that the phone system probably relies on computers, too. Soon after reading Lev Grossman’s account of Facebook founder Mark Zuckerberg, Time Magazine’s 2010 Person of The Year, the latest statistics about Australians’ online habits were published. Where do these people find the time to do all this stuff, most of which has moved effortlessly from the desk, to the laptop, to the smart phone? However, ignore social networking at your own peril: not only is Facebook said to have “wired’ together one in 12 people on the planet, the digital labyrinth (mainly Facebook and Twitter) is credited with helping to mobilise mass uprisings in Egypt and now throughout the Middle East. US Ph.D scholar Ken Thurber, author of Big Wave Surfing: Extreme Technology Development, Management, Marketing and Investing, sees the impact of Google, Facebook and Twitter on Middle East politics as a normal evolution. “Technological change has crashed upon the world political scene. Like any wipeout it isn’t always pretty, but it’s the inevitable result of forces that have been forming for years.” There have been such changes before, argues Thurber, who cited 1968 as a particularly tumultuous year in America with riots, assassinations, and the Tet offensive in Vietnam. It caused iconic CBS news anchor Walter Cronkite to break with and publicly criticise President Lyndon Johnson and his handling of the war. “The difference now is that technology has made knowledge and events almost instantaneously accessible to a much wider audience. News travels across the world without censorship.” Thurber adds that in Egypt, ‘a big-wave

This year (2010) Facebook … added its 550 millionth member. One out of every dozen people on the planet has a Facebook account. They speak 75 languages and collectively lavish more than 700 billion minutes on Facebook every month. Last month (November) the site accounted for one out of every four American page views. It’s membership is growing at the rate of about 700,000 people a day. What just happened? In less than seven years (Mark) Zuckerberg wired together a twelfth of humanity into a single network, thereby creating a social entity almost twice as large as the U.S. If Facebook were a country it would be the third largest, behind only China and India. – Lev Grossman, on Facebook founder Mark Zuckerberg, in his article 2010 Person of the Year, Time Magazine, 27 December, 2010, – 3 January, 2011.

Network tech surfer’ like Wael Ghonim, a Google executive who helped plan the protests, is now seen as one of the leaders in the pro-democracy movement sweeping through the Middle East and North Africa. Thurber says that the Internet, with its social networks, has just started to tap the power of people for both good and evil. The tempo of social change will only increase, he says. Social networking is becoming the norm in business where, at the very least, companies can engage with customers through a host of networks. (You just have to convince those people who have bought something from you to now be your friend.) The Australian Taxation Office invites us to follow it on Twitter. You have to wonder about that, although, if they can collect a few followers, it should be dead easy for everyone else. Melbourne couple and authors Leigh Wilson and Eva Torner think Facebook can help their book sales. They say social networking provides opportunities through accumulated friends – the “friends of friends” network. How much time Facebookers spend networking at work may worry employers, although some expert opnion says social networking staff members could actually help

14 | BusinessTimes Greater Dandenong | March 2011

their companies. And it’s hard to imagine that it would be as non-productive as the constant ‘smokoes’. At least the ‘so-netters’ are still at their desks. Social networking accounts for one of every five minutes spent online in Australia, according to comScore, which measures the digital world. comScore has released The State of the Internet in Australia, looking at latest trends in digital consumer behavior. Among the report’s key findings was that social networking now accounts for the largest amount of total time spent online (22 per cent), 5.3 per cent up from the previous year. The report also found: • In December, 2010, Microsoft sites led as the most-visited internet property in Australia, followed by Google sites and Facebook.com. • But when looking at the top sites by total minutes spent, Facebook.com assumed top spot followed by Microsoft and Google sites. • More Australians visited retail sites compared to last year, outpacing increases in the global average. Amazon and Apple led as the most visited retail destinations. • Group-buying sites continued to gain traction over the past year. Cudo, an MSN

revolution property, currently leads the space with 418,000 unique visitors in December, 2010. • Three out of four online users in Australia watched online video in December with an average viewer watching more than seven hours of video during the month. Businesses that ban their employees using Facebook and Twitter at work may be fighting a losing battle, which, according to some experts, is a fight not worth having in the first place. With the rising use of social networking on mobile phones, instead of logging on at their work computers, employees are simply taking a break and escaping the building to check their accounts. University of Melbourne researcher Dr Brent Coker told the Herald Sun there was no point banning social networking use at work. It allowed workers to take a break and, in fact, increased productivity. Dr Coker has argued that workers visiting social networking and news websites on the job are about nine per cent more productive than those who don’t – provided the break time doesn’t exceed 20 per cent of the workday. After researching the phenomenon back in 2009, Dr Coker concluded: “Short and unobtrusive breaks, such as a quick surf of the internet, enables the mind to rest itself, leading to a higher total net concentration

for a days work, and as a result, increased productivity.” An American workplace expert, John Budd, says the debate will follow similar debates in the past about personal use of work telephone and email accounts, where employers will learn to trust employees to do the right thing. “Do you want to create a climate of trust and empowerment … or do you want to create a climate of distrust, monitoring and control?” Budd asked.

Online employer advocate site showed most support employees checking their Facebook page during work hours. A Victorian Employers Chamber of Commerce and Industry report late last year pointed out how some software developers have produced applications to lock individuals out of social networking websites after a prescribed time if they spend too long browsing on Facebook. The VECCI reported contnued: “Whatever your company’s social networking policy (if you have one at all), simply remember that

Mark Zuckerberg started a Web service from his

dorm at Harvard. It was called Thefacebook. com and was hailed as “an online directory that connects people through social networks at college”. The Harvard days and after are subjects of the movie ‘The Social Network’ written by West Wing’s Aaron Sorkin.

your workers are likely to get around it in some method. Finding the right balance is key – give your employees something and they’re likely to give you something in return. “How businesses approach the issue of social networking in the workplace often varies from company to company. Some go as far as blocking the sites so workers cannot gain access at any stage on their work computers, others allow browsing while on official breaks, and others have a more liberal policy, allowing browsing as long as work gets done, too.” An onlineVECCI poll on whether social networking sites like Facebook and Twitter should be banned in the workplace showed support (or acceptance) of the online activities. More than 80 per cent offered qualified support for employees checking their Facebook page at work. Sixty per cent said ‘yes’ provided work was completed, while just over 22 per cent said it was OK on a break or at lunchtime. • The comScore report stated that nearly 12 million Australians conducted an online search query in December, with an average searcher performing 115 queries. Google sites accounted for 80 per cent of searches in December.

March 2011 | Greater Dandenong BusinessTimes | 15

CONTRIBUTIONS

A broker acts on behalf of the business. A broker is not an agent of the insurer.

Why use a general insurance broker?

A good broker will be aware of the benefits, exclusions and costs of competing policies on the market. They will also help arrange and place the cover and can often provide advice on how to make the most of your insurance budget. Using a broker doesn’t necessarily cost more. Often it costs less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums for customers. A broker will also explain the policy and any special situations you need to watch out for. Furthermore, brokers are obliged to explain fees charged for services. All brokers are required to be licensed and are required to have accounts audited annually and have professional indemnity

By Doug Kerr, of Brokers National  (03) 9791 6688.  Email: dougk@brokersnational.com.au www.brokersnational.com.au

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As a business owner it is important that you consult with a licensed insurance broker when arranging business insurances. An insurance broker can save you time, money and worry, and, most importantly, a broker manages claims for clients. Just like an accountant or lawyer who provides impartial professional advice based on years of training and experience, a qualified broker does the same with insurance. A registered general insurance broker acts on a business’s behalf: a broker is not an agent of the insurer. When arranging insurance, many businesses take shortcuts without seeking proper advice. Often they don’t understand the fine print or consider whether they are getting value for money. Often they are disappointed when their insurance doesn’t come to the rescue if a claim occurs. Brokers have access to lots of different policies because they deal with a range of insurance companies.

cover. Brokers are regulated by the Insurance (Agents and Brokers) Act 1984 and The Financial Services Reform Act 2003. The principal body is the National Insurance Brokers Association (NIBA) established in 1982. It represents around 500 member firms and 2000 individual employees of insurance brokers. NIBA member firms are subject to strict screening. They also agree to enforceable codes of conduct and practice. All NIBA members subscribe to an external complaints facility and have their own internal dispute procedures. Dealing locally is most important from a service viewpoint if a claim occurs or if you wish to discuss your insurances with your broker face to face. Brokers National Dandenong offer business insurances irrespective of the size of your operation, so call Evan or Melissa.

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per cent of their total share of growth, as at October last year. The convenience sector continues to be concerned that there are smokers accessing the illicit market for tobacco products. “The gap between the supermarket chains and small business sector effectively widens on the back of admirably intentioned yet ill considered policy,” Ms Moon said. “The report highlighted that as further legislation paints an uncertain future for convenience store operators and the sector, a more integrated and far-sighted approach is required from government, suppliers and retailers alike,” she said. “After all, the convenience store sector, as a big part of the small business sector, is a major contributor of government revenues, from taxes paid on purchases to income and company taxes for the many people employed in the sector.” The AACS is the campaigning voice of more than 4379 convenience stores.

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the increasingly competitive environment for share of the consumer wallet was that petrol-only sales increased 44 per cent from a year ago and more than half (55 per cent) of sales at convenience stores are solely for petrol. Sheryle Moon said: “Beverages, in particular hot drinks, have replaced tobacco as the number one contributor to store gross profit. This demonstrates the growing acceptance of coffee offers in a convenience stores. “The big supermarkets are continuing to encroach on the ‘convenience’ of convenience stores utilising their enormous buying power and supply chain to lure customers to the supermarket.” While tobacco sales have fallen in convenience stores by 10 per cent, national grocery statistics compiled by global research group Synovate Aztec show tobacco sales have instead increased by 8.6 per cent in major grocery chains and now comprise 29.7

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AUSTRALIA’S convenience store operators have lost tobacco sales and relied more on petrol and coffee sales in a tough year. The Australian Association of Convenience Stores (AACS) annual state-ofthe-industry report indicates that its member stores were hit hard by natural disasters, higher utilities bills, new taxes and mortgage stress in 2010. “Thrift is the new black and the convenience sector faces stiff competition from major grocery chains,” according to AACS executive director Sheryle Moon. “The ... drop in tobacco sales in convenience stores has corresponded with a marked increase in tobacco sales at large grocery chains and through illicit channels,” Moon said. The report found that customer visits to convenience stores were down more than 10 per cent and the average spend on petrol was down by 13 per cent compared to 2009. Moon said that a more telling statistic of

BUSINESS & THE ARTS

The art of goodwill helps all  RAMADA Encore Hotel manager Sheldon Lazaroo doesn’t for a moment doubt that sponsorship of the arts pays off. And there are benefits over and above a commercial return, says Lazaroo, whose hotel has supported community events, particularly the arts, for the six years since it opened. “There has always some level of community support ensuring the hotel had some tie in with both the community, and growing Dandenong region,” Lazaroo said. “We are involved in local councils and the business community and have supported arts through our active involvement and sponsorship of the Drum Theatre as well as participating in many chamber of commerce and Greater City of Dandenong’s art events.” Lazaroo reflects several survey findings that businesses feel a social responsibility to support community arts. “Without the cooperation of local business there would be a very small pool from which to draw sponsorship and corporate dollars and representation. “Goodwill attached to any business supporting the arts can only be positive in the long term. This cooperative support adds weight not only to the art events, but assists in growing community awareness of businesses and strengthens community relations.”

Sheldon Lazaroo said Ramada Encore found that through sponsorship of the Drum there was greater awareness of the hotel’s facilities, services and location to a whole new market. “This market is harder to reach than our usual commerce and industry segments. Exposure through the Drum has helped us reach a growing leisure market in the region. With assistance and sponsorship of businesses such as ours, the Drum has managed to spend more dollars where needed and attract events, such as the exclusive “Funk it Up about Nothin” show. “This event will provide the hotel with additional exposure through media advertising and room nights from the touring company and patrons attending the event.” Lazaroo said Ramada Encore chose to support Drum “because we can see the dynamic role that it plays in the community”. “We feel that we can only benefit from the energy and enthusiasm shown by Greg Hordacre and his team and we know that ‘Funk it Up About Nothin’ is a not-to-be missed opportunity to profile both the Drum and the Ramada Encore Hotel. “We also have a fantastic opportunity to treat some of our key companies to a VIP corporate evening involving a drinks reception and theatre tickets to watch the show.”

Lazaroo’s expectations from sponsorship transcends commercial returns. “We enhance the local community in which we operate and also add to the image of the hotel, increase market awareness and build strong ties with a vibrant arts organisation. The arts play an important role in bringing together and creating a community. Within our multicultural society of Dandenong, recognising and identifying the cultural values of the many nationalities within the area, and having the ability to bring them all together, becomes an easier task when there is a venue like Drum, which actively promotes a multicultural calendar of events.” Arts sponsorship has becomes part of Ramada Encore’s daily operations, too Lazaroo said the hotel used guests and key bookers to promote Drum. “The numerous lunches we hold are a perfect means to discuss what is on in the area and we do use complimentary theatre tickets as gifts for the companies we need to thank. “Our relationship is somewhat symbiotic in that both The Ramada Encore and the Drum benefit.”

Diverse, energetic and talented: that’s The Drum on Dandenong

Christopher Hermann, of VicUrban.

Festival as a well managed event that first and foremost encourages community participation and brings together multiple cultures. “VicUrban is proud to help make possible an event that celebrates and raises awareness of Dandenong as a diverse, energetic and talented community with enormous potential for creative enterprise. Events such as this can really help change perceptions of Dandenong and showcase the visible transformation occurring on

18 | BusinessTimes Greater Dandenong | March 2011

and around Lonsdale Street.” Hermann said it was encouraging to see local businesses supporting the festival and other cultural events. “They have the potential to attract new and repeat customers into Dandenong,” he said. The $290 million investment by the government in revitalising Dandenong is designed to attract more than $1 billion worth of private sector investment, 5000 jobs and 4000 new dwellings to what will become Melbourne’s flagship Central Activities District. A reborn central Dandenong should become a welcoming and user-friendly backdrop for community get-togethers like The Drum Festival. 1526

VICURBAN’S role in the $290 million Revitalising Central Dandenong initiative is not limited to the physical transformation of Melbourne’s second city. The state government’s land development agency is also supporting Dandenong’s cultural needs by sponsoring the Drum Festival this month. While VicUrban is rejuvenating the centre with the aim of creating “a fresh new future for central Dandenong”, it is also keen to help grow the community’s social, cultural and economic prosperity. VicUrban’s Development Director, Christopher Hermann, said the agency has a history of supporting community art programs, social enterprises and events “that deliver lasting benefits to the communities in which we operate”. Hermann paid tribute to the Drum

Festival time w Central Dandenong will be

Part of (The Drum’s) role is to be vibrant, vital and visible: Greg Hordacre, director of cultural facilities.

A cultural heartbeat

The Drum Theatre is at the geographic heart of Dandenong and hopes to become the city’s cultural heart as well. Keith Platt reports. Performances and activities lined up for the 2011 season reflect the tastes of the city’s eclectic demographic and aim to extend the theatre’s appeal beyond the boundaries of Greater Dandenong. The Drum sees its future as tied to the rejuvenation the central city is undergoing with the development partnership of VicUrban and the City of Greater Dandenong. “We’re sending out a message to audiences to look at what Dandenong has to offer for a night out,” Drum’s director of cultural facilities Greg Hordacre said. The theatre has linked up with four restaurants with an offer of specially priced pre-performance meals that can be ordered through the box office when booking tickets. The variety of gastronomical choices available in the city is also highlighted with its inclusion last year in the Melbourne Food and Wine Festival, about to be repeated in March this year. In both cases bookings were made through Drum. The theatre is also tapping into the swing of the city in a very direct way on Friday 18 and Saturday 19 March with the Drum Festival. Drummers from a variety of backgrounds including India, Africa and Malta – will feature in free performances outside the theatre from 1pm-6pm. The festival will open the night before with ‘Shifting Sand’ by TaikOz, a group that since 1997 has been developing its own sound using flutes and drums based on traditional Japanese Wadaiko music. Mr Hordacre said attracting

people to Dandenong for cultural activities for a couple of days would “have a beneficial spin-off to centrally-located businesses”. In July drums will again take centre stage when artists from a variety of cultures in Dandenong perform during Emerge Festival Hub 2011. At the same time the Drum’s foyer will take on the appearance of a bazaar, reflecting the breadth of the city’s resident cultures. Mr Hordacre says the Drum was “aware of the demographic” when booking acts for the theatre’s season that was also designed to cater for schools from within and outside the municipality. “We’re already looking at 2012-13 at what resonates best with the market,” he said. “It’s part of our role in the emerging Dandenong, which is to be vibrant, vital and visible.” The Drum also has an eye on the potential to attract audiences from further afield and stresses its nearness to Melbourne while seeking to build relationships with performing arts companies. In late March and early April Drum will host the only Melbourne performances of Funk It Up About Nothin’, the “ad-rap-tation” of Much Ado About Nothing by the Q Brothers, of the Chicago Shakespeare Theatre Company. “We present the sort of program you’d expect only to find in Melbourne itself,” Mr Hordacre said. “It’s a real treat for the people of Dandenong and, hopefully increasingly, people from the city. “We will evolve with Dandenong as it evolves.”

‘drummed’ into life for two days this month as free performances reverberate through the streets. The Drum Festival on 18 and 19 March is an expression of cultures through music at several venues – Drum Theatre, Dandenong Market and the new Lonsdale Street public space. Drum Theatre staff wanted to take performance beyond the walls of their theatre, into the city’s streets and market lanes. So, with help from Greater Dandenong Council and VicUrban, they are bringing the tradition of street performance and community celebration to Melbourne’s second city. The eight-member Japanese inspired drum and flute group, Taikoz, headlines the festival with an opening performance at a school on Friday, 18 March, followed by an evening performance at Drum Theatre of their new work Shifting Sands. On Saturday a number of workshops will precede more music at Drum . Dandenong Market will come to life on Saturday morning with several performances Festivities will continue in the afternoon at the new public space in Lonsdale Street, adjacent to Drum. w The following big event will be the only Melbourne performance of ‘Funk It Up About Nothin’ – an adrap-tation of Shakespeare’s Much Ado About Nothing on Tuesday 29 March, Friday 1 April and Saturday 2 April, 8pm. US rap sensations Q Brothers have reworked the classic into a hip-hop celebration.

Drum Theatre: w Tel. 9771 6666 w Email drumtheatre@cgd.vic.gov.au w Book online for tickets and dinners. w Become a Drum member for $30 and recieve special deals.

March 2011 | Greater Dandenong BusinessTimes | 19

HEALTH

The depression epidemic A witty person once described depression as “anger without enthusiasm”. Indeed, the consulting rooms of practitioners throughout the land are full of outwardly glum but inwardly smouldering patients. I’m being a little flippant; it’s a serious issue. The organisation beyondblue asserts that in Australia, one million adults and 100,000 children live with depression. And that at some stage in our lives, depression will affect one in six people, more of them women than men. (Wonder why ... don’t suppose it would be that life generally tends to be better for men?) Anyhow, if this was some organic disease, we’d be calling it an epidemic. Even allowing for the possibility that depression has been over-diagnosed, it is an incredibly prevalent problem that has flow-on effects in all sorts of areas. I am convinced that the Western approaches to tackling depression – drugs, counselling – still largely miss the mark. One healthy development has been beyondblue’s removal from its website of references to depression being a biochemical illness due to the lack of a particular neurochemical – serotonin. That was the explanation so effectively sold to us by the companies that manufacture the drugs that influence the body’s serotonin levels. It’s not your fault, you don’t need to fix your life, it’s just a disease like any other, caused by an imbalance in your biochemistry. While this line had the benefit of breaking down some of the social stigma attached to depression, it was ultimately unhelpful, because the idea that depression is caused by a lack of some chemical in the body is about as useful and accurate as saying that headaches are caused by a lack of Aspirin.

Michael Ellis*

Chinese Herbalist

Antidepressant drugs that can artificially lift a person’s mood have their medical uses, but they will cure nobody’s depression. Another myth is that depression is caused by sad, devastating or even tragic life events. For starters, it’s unlikely that over a million Australians have suffered such hardships, and anyhow, human beings are a resilient species. No, it’s not about brain chemistry, nor bad things happening to you. Depression is about a person’s emotional needs not being met. Just as we have certain physical needs – food, shelter warmth – we also have emotional needs. They are: the need to feel safe and secure; to have status and respect; to have a sense of independence and control of your life; to have a sense of competency and achievement; to receive attention; to have intimacy; and to have wider connections with family, friends and community. When one of more of these emotional needs is not met, then we feel emotionally unfulfilled and are at risk of becoming depressed. If they are all being met, we cannot be suffering a mental illness like depression. Seeing depression as being at root an emotional need being unmet explains why talk therapies do not necessarily help. A hallmark of depression is that the person chews over and over the same seemingly unresolvable issues – day and particularly

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night – keeping themselves in a permanent state of emotional turmoil (but outward glumness). Talking about it – analysing it to death – can compound the problem because that simply regenerates the emotional charge. The most significant need among Australians is the need for wider connections. Humans have a fundamental emotional need to feel a part of something bigger than themselves … family, community and then some sort of spiritual connection. For humans in all cultures throughout history, community life and the sense of spiritual connectivity through religion have been protective against mental illness. Typically, a depressed person withdraws from social contact. One usually effective treatment strategy for a depressed person is not only to re-establish contact with friends but also to encourage some sort of volunteer activity that fosters a sense of belonging and usefulness to a community. No matter how absurd, counter-intuitive and illogical their “stories” and rituals may be, religions meet that deep desire for a sense of spiritual connection. It’s also why many people become so attracted to gurus. It’s not unkind to say that Australians are among the world’s most material, most sceptical and least spiritual people. This is all very well, but unless we consider these aspects of our society, we may struggle to make inroads on the depression epidemic. • If you are interested in learning more, I highly recommend you visit the website: www.humangivens.com and www. humangivens.com.au. Their book How to Lift Depression … Fast is well worth the small investment.

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Towards growth: dream and plan Last edition, we reviewed the process to try to answer the leading question that life partners like to ask: “What are you going to be doing in five years’ time?” We examined this first step towards growth through analysis of how you got here and the major forces that have shaped your business to date. Once you have a sufficient understanding of today’s business, then you can start to dream about the future by considering as many growth possibilities as you can envisage. Firstly, many of the forces that have shaped your current business will continue to shape it in the future. The external forces are completely outside your control, and can often make or break your business, but they also provide some strong potential growth vectors for you to explore. For example, how is technology going to reshape your business? Every business will be impacted by the increasing speed of technology change through the internet. The increasing role of internet suppliers can present real challenges to those suppliers who have significant physical presence and overheads. While internet based sales only represent around one per cent of retail transactions in Australia at present, there is no doubt that this share will rise in coming years and every business should have a clear strategy on how to harness this change for growth. What about demographic changes? For example, the retirement of baby boomers, or the aging of children born during the mini-baby boom which started here in 2004? What about government policy or regulations? What about the impact of climate change and the increasing frequency of abnormal weather events? It may be that your growth opportunities arise by being prepared to react when these events occur by adapting your business faster than your competitors. Once you have thought through these external issues, then you should review the factors that are under your control. Are there business opportunities adjacent to your current business that will support growth? If you sell a product, can you add a service component that enhances your

Hamish Petrie*

Business Consultant

connections to your existing customers? The reverse scenario can also work, that is, if you are providing a service, can you add a product range to your business? Alternatively, can you move up or down your supply chain in a manner that does not damage your existing suppliers or customers? Probably the most challenging part of growth is finding the right people to grow with you. Obviously, growth means more people either at your existing location or at a new location, so you have to find the right people with the right skills and commitment to follow your business model and values. If some of your existing people can grow with you, then bring them into your dreaming process as they may be able to contribute alternatives that you have not considered.

The financial side of growth is the toughest part because your current business needs sufficient cash flow or cash reserves to be able to fund growth. Once you have developed scenarios for growth, it’s important to start some confidential discussions with key stakeholders to test their reactions. These discussions could include business partners, key staff, suppliers, potential customers and your financiers. Obviously, this needs to be done in a way that will protect your opportunities and ensure that your discussions lead to a more developed understanding of the risks and potential rewards of each scenario. Now comes the hard part, progressive elimination of the higher risk scenarios and increasing focus on the one or two that

will provide the best risk versus reward outcome. Again, it is important to keep your key people involved and to work at it intensively so that the process can be completed in a relatively short time. Once you have narrowed down potential growth scenarios to a manageable few, it may be safer to test or model the idea before launching it fully. This is sometimes complex, but it is an opportunity for you to see how your key people handle the pressures of implementing a new set of business challenges. Computer models can be developed for many businesses and these can be effective tools to test growth scenarios. This way may be a financially safer alternative than diving into full scale implementation as your initial step. The financial side of growth is the toughest part because your current business needs sufficient cash flow or cash reserves to be able to fund growth. This investment phase in assets, inventories and people must be kept as short as possible so that you can achieve profitable growth quickly. The lead time between investment and return has been a real sticking point for too many businesses, so it is always safer to dream, test and model growth scenarios before you start the real cash investment. Any growth phase requires a huge leadership investment, so before you start the process, make sure that you and your family understand the full lifestyle impacts as you steer your business towards its more profitable future. At the end of the day, growth must be profitable so that you and your family can gain appropriate rewards from all of the effort needed to achieve it. Action Planning Questions: 1. Do you have an in-depth analysis of your current state of business as a foundation for growth? 2. Do you have a clear strategy on how internet transactions will impact your business? 3. Have you identified your best people to grow with you and prepared them to participate? 4. Do you have a current model of your business that can be used to test alternative growth scenarios? 5. Are your family ready and able to help you through the difficult early phases of growth? * Hamish Petrie had a 37-year corporate career, including 29 years with Alcoa Inc. His final position was VP-People and Communication for the global Alcoa Corporation in New York City. Contact: hamish@nitroworld. net.au or on 0404 345 103.

March 2011 | Greater Dandenong BusinessTimes | 21

NEWS WHEELS

Bold revamp for Kruger Toyota dominates the 4WD market in Australia and has done so for many decades. There’s a staggering choice of models and the subject of this review, the heavily revised Toyota Kluger, is an interesting variant that meets the needs of many buyers.

Kluger is slightly smaller than the Toyota LandCruiser and Toyota Prado, but isn’t aimed at the traditional 4WD buyers who choose those two models. Rather, Kluger is a player in the ever expanding soft-roader market. Indeed, the purists get angry if you call Kluger a 4WD, saying that it is simply an all-wheel drive (AWD). The limiting factor in the Toyota Kluger isn’t traction, which can be surprisingly good for a softroader, but poor ground clearance which is only about halfway between that of a normal 4WD and a passenger car. On gentle off-road excursions the Kluger should look after a driver with no real off-road experience, and can tackle reasonably tough bush conditions in the hands of an expert. This may sound like a contradiction to what we have just said, but the Kluger’s on-road comfort is so good and it’s an excellent people mover, so some will buy it to take the family exploring this wide brown land of ours. If that’s not your bent, these days the Kluger is also sold with 2WD for those who have no intention of going off-road. A bonus of the 2WD version is that it’s lighter than the 4WD, giving it slightly better performance and is more economical at the same time. Late in 2010 Toyota gave the Kluger a strong midlife makeover with major changes to the exterior appearance. The complete front end forward of the windscreen was

Aimed very much at the American market the new Toyota Kluger is unashamedly bold in its appearance. Ewen Kennedy Motoring Journalist

revised with a new design of bonnet, guards, radiator grille, headlights, the latter with chromed surrounds. The result is so different that many may think it’s an all-new model. Because it is aimed at the US market the latest Toyota Kluger is unashamedly wide and bold in its appearance. Also to suit the American market, chrome has been used in other locations than just around the headlights, a feature we like – though it may not be to all tastes. Toyota Kluger’s primary use is as a people mover, a function it performs very well. There’s a huge amount of interior space and four adults and three children can be carried in comfort, even seven adults is less of a squeeze than in many other vehicles. The second row seat can have legroom that’s almost limo like, and shoulder room that’s better than in any limousine saloon. Best of all is the completely flat floor in this area. The independent seats in the second row slide backwards and forwards depending on how much passenger/luggage space you require. The rearmost ‘third’ seat

22 | BusinessTimes Greater Dandenong | March 2011

is an optional extra that folds completely out of sight. When not specified you get a pair of extra underfloor luggage areas that keep valued items securely out of sight. Luggage space is very good, especially when the Kluger is being used as a five-seater. Even with seven seats in use it’s possible to fit a medium sized suitcase or a couple of cabin bags in what remains of the boot. The centre-rear seat in the Kluger Grande we reviewed has a 40/20/40 split and the centre section can be folded down to provide a sort-of-a-table between the two remaining seats. With the armrests down these two seats provide you with a pair of luxurious places. In cabin stowage is good, not only are there decent sized door pockets in all doors, but also a good sized storage area in the centre console. The lower area of this console is reached from the centre row seats and so give the occupants an additional place to secure things. The interior received a revamp at the same time as the body overhaul, although it’s not as extensive. There is Toyota’s usual emphasis on quality and the trim has a soft feel that’s pleasing to the senses. Handling of the Kluger on-road is better than average for the class. Though not to the standard of a passenger car in the way it reacts, it corners in a safe and predictable manner and will provide the family with a smooth quiet ride. Power continues to be provided by a 3.5-litre petrol unit producing 201 kilowatts. Peak torque of 337 Newton metres isn’t reached until 4700 revs, but there’s strong buildup to that figure so there’s good grunt from about 2000 onwards. Kluger’s performance is sprightly, which is not exactly common in this class. Fuel consumption, though slightly better than in the superseded model, is still not exactly on the side of economy. Expect to use about 11 to 13 litres per hundred kilometres around town with a reduction to nine to 10 litres in easy paced country driving. Kluger uses a five-speed automatic. It’s easy to use it manually, though it’s not a full sequential transmission in the modern mode. Toyota’s ability to produce the right 4WD for just about everyone is yet again vindicated in the way this latest Kluger provides just the right transport for the person looking for a spacious people mover with reasonable off-road ability in the light stuff.

Insurance job

Johns Lyng Group, Insurance Builders, has been awarded a $200-$250,000 contract to restore fire-damaged Springers Leisure Centre in Keysborough. Fire broke out in a storeroom of the centre about noon on 4 January. 2011. The contract is for the repair of fire and water damage. Council said the cause of the fire had not been completely identified by the time the restoration contract came up for approval on 24 January, but it appeared to be connected with floor sanding works.

Foundation talks

A number of corporations have indicated interest in partnering with Greater Dandenong Council if council establishes a Community Foundation. Councillors and council officers said a foundation would enable individuals or corporations to contribute to a charitable fund under a tax deductible umbrella to support the development of the city.

Resilience model for planning

GREATER Dandenong councillors and council officers have discussed the concept of economic resilience as the city looks to the future. Economic resilience considers the connection between social, public and commercial economies. Greater Dandenong anticipates using this new model in future planning.

Overseas is attraction for workers

MORE than 78 per cent of Australian employees would move overseas to pursue a new career opportunity, according to a recent Employee Insights Survey conducted by international recruitment consultancy Robert Walters. When asked which factor would most influence them to move overseas, respondents cited better salaries (42 per cent), the opportunity to work for a larger company (17 per cent) and moving closer to family/friends (15 per cent). Europe was the most popular destination for an overseas move (37 per cent), followed by Asia (30 per cent) and the Americas (13 per cent).

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