July 2011 by Keith Platt

business & LEISURE: Frankston | Mornington Peninsula | Dandenong

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Mr Form

Oracle of the punt

FOLLOWING ON

TRAINING DAYS

A ROAD MAP FOR BUSINESS SUCCESSION HELPS OWNERS TAKE EXIT

FARMER PREPARES GROUND FOR NEXT CROP OF JOB-READY YOUNGSTERS

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CONTENTS

who/what/where

Features

Presenteeism:

Staying home can be a blessing to business

The Form Guide:

bUsiness & LeisURe: Frankston | Mornington Peninsula | Dandenong

Business Times / ISSUE 15 / JULY 2011 FRANKSTON / MORNINGTON PENINSULA / DANDENONG

JULY 2011 | $4.95 (GST inc.)

A loner who always covers his tracks

Mr Form Oracle of the punt

TRAINING DAYS

ARTS PATRONS

FARMER PREPARES GROUND FOR NEXT CROP OF JOB-READY YOUNGSTERS

Your new management career starts here! Diploma of Human Resources Management (BSB50607) Diploma of Management (BSB51107) Nationally recognised qualifications from $375*

HOW BUSINESSES ARE SEEING VALUE SUPPORTING THE ARTS

Other courses available include: Advanced Diploma of Management Advanced Diploma of Management (Human Resources Management) Diploma of Project Management

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FOLLOWING ON A ROAD MAP FOR BUSINESS SUCCESSION HELPS OWNERS TAKE EXIT

* Cost of $375 is for eligible students. Delivered with Victorian and Commonwealth Government funding.

For further information, call Pragmatic Training on 03 8796 0111 or visit www.pt.edu.au

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

Publisher / Director Editorial Director Sales Director Managing Director Material production / Prepress

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DESIGN help

Review panel survives spill

Working toward better design .

Prof. Reed’s frustration is understandable when council’s own report suggests that forming a panel quorum (at least three members) “was at times difficult…”. “In some instances reviews would proceed with only the (Prof. Reed) present. One panel member was particularly difficult to get to attend – appearing only once for a proposal hearing, another member promptly asked for an

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FRANKSTON City’s $25,000-a-year Design Review Panel will be reformed and renamed after a spill of all positions. The panel was chaired by Dimity Reed, Professor of Urban Design at RMIT, until her resignation last November. In her letter of resignation Prof. Reed cited the lack of commitment of projects to completion and the slow pace of Frankston’s development. The panel’s original brief in 2007 was to assess major developments in central Frankston and improve the quality of design in new buildings. The fact is that in the period of the panel’s existence nothing of significance has been built in the Frankston CAD apart from Kananook Creek Boulevard and the Davey St bridge. No important private developments have been constructed and council has not undertaken any major civic improvements within the central activities district. This may change with the approval of the 13-storey Ario apartment building and renewed activity surrounding Peninsula Centre.

increase in payment shortly after being advised of their acceptance to the panel.” The council report acknowledges that the panel’s recommendations were well received, “however, it did not always result in significantly better design outcomes”. “Better results may have been obtained by closer attention to the scheme by a single panel member rather than a consensus approach from the different design perspectives of the many panel members.” The report agrees that response times could be quicker: time lags were criticised by developers. A new panel of seven permanent members will comprise a chairperson (preferably an architect, academic of high standing within profession); and six other highly credentialed members including a landscape architect, ESD expert, economic development advisor, traffic engineer, urban designer and heritage advisor. Panel advice will be sought from an individual panel member or from a range of members depending upon the development application and advice required. Terms of reference will be altered to reflect changes to the make up and role of the panel, now known as Frankston Expert Reference Panel.

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a green wedge for release in 2013. As well as defining growth areas for housing it will indicate where the next big rail project should be after the Regional Rail Link and the next freeway after the $760 million Peninsula Link extension of EastLink. State planning minister Matthew Guy was quoted by The Age as saying: “It is not about trashing everything in the past, it is about creating a document that has broad community input, and not sham input … about how Melbourne is going to change.” Just weeks before the latest announcement the Auditor-General released a report critical of the Peninsula Link development process and raised doubts over its economic benefits. In his report Management of Major Roads Projects Auditor-General Des

ABOUT 500 hectares of green wedge land is reserved for the Peninsula Link freeway, with construction manager Linking Melbourne Authority saying the road surface will cover about 75 hectares. The picture shows freeway works cutting a swathe through the green fields of Moorooduc. The LMA is “offsetting” native vegetation removed for the freeway but not land cleared for agriculture.

Pearson said no account had been taken of “induced demand”, or the impact of increased traffic on existing roads. He said increased traffic to the peninsula would exacerbate congestion already occurring during peak holiday times. ‘’These shortcomings create a risk of over-estimating the benefits and giving decision-makers false confidence.’’ Mr Pearson held up the $165 million Hallam bypass and $66 million Pakenham bypass as examples of freeway projects which attracted more traffic and failed to

ease congestion. Mr Pearson called for “induced demand” to be factored into all future road decisions as occurs in the UK and New Zealand. He said the 27 kilometres of Peninsula Link would have been a routine job for VicRoads and pointed out deficiencies in the process of making it a PPP (public private partnership. Costings used in the tender process to justify making the project a PPP showed a one per cent margin against VicRoads being given the work.

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BUSY bites

Cool top drop A 2009 chardonnay from Elgee Park vineyard, Merricks North, has been judged the top wine at this year’s Red Hill Show International Cool Climate Wine Show. Red Hill Estate was the People’s Choice winner with its 2007 chardonnay. New Zealand’s Spy Valley 2010 pinot noir was named best red wine while Elgee Park’s chardonnay also took out the best white award. Chairman of Judges Mike DeGaris said the light at the Mornington Racing Club made it the best wine judging venue in Australiasia. About 20 per cent of the 678 entries came from the peninsula.

Top floor for Dolphins FRANKSTON Council is likely to support an estimated $4 million-plus redevelopment of Frankston VFL clubrooms, including a second storey on the High St. headquarters. Financiers include the state government ($1.5m) and the AFL-VFL ($0.5m). The council will refer $0.5 million to its capital works budget and consider guaranteeing a $0.5m loan sought by the Dolphins. Council estimates the work, including parking, at $4.46 million.

Make your messages count... Picture this … the person reading your message is on the move – often rushed, preoccupied, agitated, distracted, and possibly frantic. Even if you’re unaware, there’s an increasing chance that the email you have just finished writing will be read on a mobile device (iPhone, BlackBerry or the like). According to the Face of the Web Annual Study, mobile devices could soon rival the PC as the world’s dominant internet platform. Avoid email mayhem and cut your recipient’s reading time by 50 per cent by following guidelines that will have you writing like a pro: 1. Be brief, but not at the expense of clarity. Leaving out specific details to keep the message brief and abbreviating sentences because the reader “will know what you mean” increases the chance of miscommunication leading to costly mistakes and frustration. 2. Write single purpose messages. It is a good idea to divide and conquer by ensuring each message has one clear purpose. 3. Use email to sell attachments Anything longer than three short paragraphs should be sent as an attachment or a link. The email should be used as a tool to convince the reader to read further. In your email, include only the purpose of the message, why the attachment is important for the reader (what’s in it for him/her) and a clear call to action (if there is one – and there usually is with email messages). Be especially careful when using ‘update’. The word implies there is no action required, so if you do need some form of action, select a different option, for example ‘request’ or ‘action’ item. 4. Make the subject line work for you.

Write a short and meaningful subject heading that reflects the message’s purpose. Keep the subject heading to a maximum of 25 characters. 5. Avoid writing emails as if they are an SMS. Business email messages should not be written as you would write an SMS. Don’t remove the niceties (words like please, and greetings and complimentary closes) and don’t use abbreviated sentences in your quest to keep your message brief. People don’t like it when they receive what they feel is a cryptic message or when they believe you’re being disrespectful or rude. 6. Write in plain English. Streamline long, awkward sentences and remove repetition and unnecessary wordiness. This is where you can make the biggest impact on the length of the message. 7. Think horizontally. For stand alone lists, use horizontal formatting rather than the usual vertical alignment. This saves space and reduces the amount of scrolling needed. 8. Ensure a 1:1 white space ratio. There are two main ways to ensure a good white space ratio: keep paragraphs short (– 4 lines) and use a full line space between paragraphs Removing line spacing and using long paragraphs does not make the message shorter – it only makes it difficult to read and scan. 9. Use text only. Avoid using formatting in email to ensure the way the message appears on your reader’s screen is the same as how you sent it. Anything that needs formatting should be sent as an attachment. 10. Edit and proofread – preferably more than once. Ensure your message is professional by checking it carefully for spelling, typing, punctuation, case, grammar and sentence construction errors. If you don’t have time to proofread the message, no matter how short it is, don’t write it in the first place – make a phone call instead.

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Most get the tax-time blues is often fraught with anxiety,” said Jason Fryer, Head of Small Business Services at American Express. “The research shows that almost all new business owners wonder at some stage if they have complied with the latest tax legislation and whether they will fall foul of the tax office if they make a mistake.” The nationwide survey of more than 500 businesses, conducted as Australian businesses gear up for their end-of-financial-year reporting obligations, found that the most stressful aspects of tax and BAS reporting are ensuring accuracy (39 per cent), access to supporting documents such as receipts and invoices (38 per cent) and reporting deadlines (36 per cent).

Amex suggests time-saving tips to overcome tax-time blues:

The end of financial year is an anxious time for Australia’s small business owners bewildered by the complexity of tax reporting and stressed by the amount of paperwork involved, according to the latest American Express Tax Time Survey. New small business owners are more prone to worry, with 91 per cent revealing they do not have a thorough understanding of their annual tax obligations and 84 per cent admitting they are unsure about what can be claimed as a business expense, according to the survey conducted by Galaxy Research for American Express. Small business owners’ doubts about their ability to understand and comply with GST and financial year reporting is causing anxiety, with many saying they fear the consequences of making an unintentional mistake. “Setting up your own business can be like jumping into the unknown. Our tax time survey shows that completing the business tax return for the first time

1. Keep on top of receipts and records by entering them into the company’s reporting system regularly; 2. Look into accounting software and other financial products that will help to minimise time spent collating receipts and recording transactions; 3. Consider the time-saving benefits offered by business charge cards – American Express Business Card displays monthly expenses on a single statement with ATO approved, GST compliant itemisation, which can be downloaded into leading accounting software packages, eliminating the need for manual data entry and itemisation of receipts; 4. Always keep business and personal expenses separate – using a dedicated business card is an ideal way to do this; 5. Familiarise yourself with the various tax concessions and small business reporting obligations for small businesses by attending the ATO’s free national seminar program for people who are new to business; and 6. Speak to an accountant for their advice on the best solutions for your individual business as well as the latest regulatory and legislative changes.

$3 m. bank loan MORNINGTON Peninsula Shire on 14 June agreed to borrow $3 million from NAB for 15 years at a fixed rate of 7.54 per cent. Use of the loan money was not specified. Principal and interest repayments will be made half yearly and the drawdown date was 20 June.

Signed and sealed DANDENONG newshound Peter Simcock and his wife Julie were treated to a dinner by Greater Dandenong Council on his retirement as a Fairfax Community News editor. Peter spent 30 years covering Dandenong events, some of this time as editor of the Dandenong Journal. A letter under seal notes that Simcock “supported Dandenong’s local organisations, schools and community groups and you continued the tradition of The Journal’s sponsorship, and support of the Carols by Candlelight program for many, many years. You have been well respected and admired across the municipality and the City of Greater Dandenong recognises and appreciates your commitment and congratulates you on your achievements . We understand that you have taken on new challenges in Gippsland and we wish you every success in the future.”

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WORKPLACE health

Sneezing an ever-present danger signal AN employee’s strong work ethic can be bad for business. Research has shown that workers who are ill but insist on turning up for work can lessen a company’s productivity, says Keith Platt

Employees who work when ill are more prone to injury and, if contagious, may pass an illness on to other employees. The analysis of the dangers of “presenteeism” are part of a fact sheet published by international health insurance company Bupa, which in Australia runs HBA, MBF and Mutual Community. The Bupa figures estimate that presenteeism in 2005-2006 cost the Australian economy $25.7 billion, with each employee losing six working days of productivity a year. Bupa claims absenteeism – work lost due to personal injury or illness – leads to fewer losses: “presenteeism is nearly four times the cost of absenteeism”. “In tough financial times, when job security is low, employees can feel obliged to battle through a day at work when they are unwell,” Bupa’s chief medical officer Dr Christine Bennett said. “As an employer, you can support your

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employees by encouraging them to only return when they have fully recovered, increase job variety, implement employee assistance or corporate wellness programs and encourage them to take annual breaks without making them feel guilty.” Dr Bennett said enthusiastic and “well” employees were more productive and “significantly better for business”. Causes of presenteeism listed by Dr Bennett included drinking alcohol, smoking, allergies and hay fever, stress, anxiety, obesity, neck and back pain, tiredness, headaches and migraines. Dr Bennett said depression caused 20 per cent of people to work at 40 per cent capacity. The Bupa fact sheet said “wellness programs” led to better “organisational performance” with employees being more engaged, creative and likely to stay more than 12 months at their jobs. Employees experiencing stress were urged to think about what changes were needed in the workplace and to talk about their concerns with their employer or human resources manager. Other “remedies” included being well organised, eating healthy foods and exercising,

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July 2011 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9

COVER STORY: A loner who covers his tracks

The FORM

GUIDE

IN racing circles, Peter Ellis would be classed as a stayer, not a sprinter. He’s clocked up commendable times in three Melbourne marathons and power walks up to 15 kilometres a day, or night. But my assessment would have Ellis shaking his head. I’m not using enough data - history, form, fitness, weather, or condition of the track on the day. Ellis is a racing tipster. A race form analyst, as he puts it. He’s a horseracing expert. His assessment of a horse’s form, as opposed to my naive assessment of him, is more mathematical and considered. I’m the type of person he’d class as a mug punter. To the outsider, Ellis has a glamorous life. He is feted by racing clubs who subsidise flights and accommodation overseas so he can attend race meetings. He’s a one-man business in the Sport of Kings. He sends dispatches to various outlets from wherever he is in the world, buying and then throwing away printers – which at $40 are cheaper to buy and throw away than carry as luggage – after running off copies of the statistics that form the basis of his predictions. The destinations and the big races roll off his tongue like days of the week: Dubai, Hong Kong (15 majors), Singapore, England (Royal Ascot, Goodwood, York, Epsom), Ireland (Leopardstown), Italy (San Siro), France (Longchamp, Chantilly, Deauville) the United States (Kentucky Derby, Saratoga, Santa Anita, Arlington Park). Places and races still to be ticked off include Russia, Japan, South Africa and Argentina. On one trip he attended 28 meetings in 30 days in England and Europe. On yet another he was in Hong Kong on a Sunday, New York by Monday, then on to Cincinnati from where he drove to Louisville to attend races Tuesday to Saturday

Words and picture by Keith Platt before arriving back in Australia on the Sunday. Sitting in one of his favourite coffee shops in Hastings, Ellis recalls thinking about the strangeness of it all as he pulled his car up alongside a cornfield outside Toledo in Ohio to email his tips for the next Moonee Valley races. “I couldn’t do it without the internet. On these hit and run trips you need access to information because you can’t afford to be in the dark for too long a time.” Ellis estimates he works up to 80 hours a week studying form, keeping his records, drawing ‘speed maps’, filing copy for publications, speaking on the radio and attending race meetings. Up to 30 of those hours are spent watching DVDs or videos of horse races, noting where each horse was placed during a race as well as at the finish. His pay TV subscription is

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made solely to watch overseas races. The history, the running and the track all are added into his calculations, which end up as predictions.” I don’t know anyone in the industry who watches more races,” he says. “Few people do what I do because it’s so hard.” When he goes the track – which can be up to three times a week – he checks the turf after the meeting is over, looking for soft spots or any other physical aspect of the turf that might have affected the run of the horses. Everything will be carefully noted and added to his store of information to be factored into the next outing of the horses that ran on the day. In one 20-year patch he only missed going to a meeting for one week. His details on tracks span 40 years, although works like the new drainage system at Mornington can make them redundant almost overnight. Ellis has been around the tracks a long time. After tiring of football and cricket on the Mornington Peninsula in the early 1970s, he and a few friends began driving to Frankston to catch the train to Flemington. He worked up to the status of “form man” and found work with a friend who ran a tipping company. Writing a column for the Hastings-based Independent News Group later led to work with The Age – which still likes to label him The Pro when he covers the Spring Racing Carnival – and one of his staples, RadioTAB, which he broadcasts his show every Saturday morning to listeners in South Australia, Queensland and the Northern Territory. Bet-Busters, the Gulf News and the Mornington Peninsula News Group also publish his tips and opinions. He also does consulting work with trainers and jockeys. Ellis says he has developed “a good following because my strike rate is good. What I say is down the line. I’m not copying anyone else’s tips.” Although his predictions can have an effect on the odds Ellis says no one has ever asked him to “play up or down a horse”. However, “with money attached, there’s bound to be skullduggery sometimes” and from his observations and knowledge he knows if a horse “hasn’t run to form when it should have won”. These “inexplicable rides” will be noted in Ellis’s records and factored into the horse’s form. “I would know more than the steward’s because I see these horses at different tracks and know their form.” Just as he doesn’t follow other tipsters, Ellis keeps a friendly distance from other racing insiders such as trainers, breeders and jockeys.

The Ellis A list Best horse: Australia – Three times Cox Plate winner Kingston Town during the late 1970s and early 1980s. Overseas - See the Stars winning the 2009 Prix de l’Arc de Triumph, at Longchamp, Paris, France. Best sprinter: Manikato. Best run: Zenyatta winning the 2009 Breeders Cup Classic at Santa Anita, California (second best run: Zenyatta, coming second in the 2010 Breeders Cup Classic, Kentucky). TOP: Peter Ellis at Happy Valley Racetrack. Hong Kong, and (ABOVE) Ellis at the Kentucky Derby, in the United States.

Best day at the track: Seeing Australian horse Choisir winning the 2003 Kings Stud Stakes at Royal Ascot, UK at 25/1 and, four days later, winning the Golden Jubilee at the same track at 7/1.

“I talk to trainers, but it’s just conversation. I’m not interested in where they think a horse will come because they only know how their horse is doing.” When it comes to breeding, “every horse is an individual. I try to find their strengths and weaknesses – if you find that key, you’re firing”. “Jockeys can be that far off that it’s unbelievable. They think they can analyse a horse, but what can they see? I’m standing back and can see all three dimensions and that’s why I prefer to see races live, because I can watch what’s happening at the back, middle and front of the field, not just where the cameras are pointed. “My perfect scenario is watching the horses in the mounting yard, watching them race, go to scale and then recover. If I’ve got the video as well, I’ve had the whole package.” Ellis reckons a 30 per cent strike rate is the “absolute best” a jockey can achieve “and if you follow a jockey you’re 99 per cent sure of losing in the long run”. “It’s all about mathematics and not the strike rate on the day. Ellis has ridden a horse ... once: “as a kid and the ground seemed a long way off”. He admits to punting in a small way, but says “being a professional would mean giving up what I do”. He knows of pro punters with a $1 million monthly turnover who aim for a five per cent profit “who hire people like me”. “I’ve never been a pro punter. I possibly might be one day, but I’d have to drop everything. I like what I do and to be a punter you need to do it properly. You would need to work just as hard as I do. There are no short cuts, you get reward for effort.”

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July 2011 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11

IT ISSUES

Virus, worms ... help! This has been my number one phone call this month. Fortunately, they all end with the phoney software being removed and no damage done. Probably the most disappointing fact is that usually the client believes there are a number of viruses and only calls us after paying the $50 removal fee. One of my favourites is the range of fake antivirus products that are seemingly infecting PC’s globally at the moment. They come with Names like XP Antivirus, Paladin AntiVirus and Windows Antivirus. Their number one job is to make you believe that your PC has many dangerous and nasty infections at which point it demands a onetime payment for their removal. The software looks good, very professional in fact, and I’ve even found myself believing it for a moment. The software is annoying, it sits in front of your programs and continues to warn you every 30 seconds. It can even stop you from browsing the internet under the guise of “Protecting your PC”. Once the payment is made the notifications go away and you’re tricked into thinking it’s done an excellent job of removing the viruses. But you’re more likely to pay again in another six days when it notifies you of another few dozen fake infections. Nine times out of 10 people have paid the $50 before calling us in. It’s actually a real tricky one to remove, but we’ve done it so many times now it’s almost second nature. We’re tired of seeing the general public ripped off. If your machine is exhibiting anything like the above feel free to give us a call. We can check a few things over the phone and allay your worries very quickly. By Matthew Gordon, Managing Director, Solution One (03) 5987 1565.

Virus, malware, worm, spyware I’d like to spend some time debunking a few myths here, and also give you some understanding of the differences between the many nasties that you could come across online. It’s very common to simply resign yourself to the fact that you have a virus - everyone’s had one, and we hear of poor old PCs being infected in their droves. The funny thing is that half the time it’s not actually a virus it’s more likely something more annoying but less destructive. In the early years viruses were well known for destroying data and wreaking havoc on business networks. Viruses developed the reputation of being very malicious and fast acting with no known way of being blocked. Fortunately for us the windows platform on its own has some excellent Virus protection these days and the days of destroyed files are almost gone. Every now and then I still get copied in on an email letting me know of my PC’s impending doom as a new virus has just been released that will cause it to grow legs, leap off my desk and promptly throw itself under the next passing car. These emails are usually greeted with a smirk at my end – if nothing else they are creative! Its Malware & Spyware these days – these critters are very commonly referred to under the Virus category and truth be known are set to make your life a misery at some stage or another. I come across a few hundred cases of Malware & Spyware for every single virus case – they are certainly more prevalent these days. To better understand Spyware & Malware –

let’s firstly take a look at one of the hottest commodities on the Internet…. Advertising! I’ll bet the first thing that springs to mind is SPAM… Who gave out my email address? How did they know where to send this? The truth is it’s something you’ve done almost every single time. The problem is you didn’t know that you did it! Spyware & Malware fall into the category of annoying. They sit in the background watching what you do online, they compile lists of sites that you visit and also details of what you spend your time doing. This information can be sent to a database and suddenly you’ll find yourself being bombarded with advertising. I am yet to find a PC that doesn’t have some form of this software running on it. • More on this topic next month.

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FINANCIAL SERVICES

Be prepared for business succession in a position of financial stress. This is more commonplace around involuntary succession, where something unexpected happens to a business partner/owner, subsequently affecting other owners and their families. Traditionally, business owners don’t give themselves enough time to plan and often there isn’t someone waiting on the sideline to buy their business. In cases of involuntary or legal succession, the risk of negative financial outcomes can be quite high.

Business succession planning provides a ‘road map’ for business owners to exit their business. Exiting the business can occur largely in 3 different ways: • Voluntary succession: A person retires or sells their business or share in the business • Involuntary succession: Leaving a business through accident, illness or death • Legal succession: such as bankruptcy or partnership breakdown. A financial adviser is ideally placed to help business owners plan for their succession. The plan should scenario test the three different ways business succession may occur within the context of the individual business being considered. Structure of the business, the number of business owners and business size will all affect the shape of the plan that is created. Without a succession plan, a number of things can go wrong. In a worst case scenario, it can lead to a business folding and a loss of business assets, which can leave one or more parties

If you have a business and haven’t spoken to your Financial Services Partners Adviser about your business succession plan, now might be a good time to start the conversation. The advisers of Financial Services Partners Carrum Downs are Authorised Representatives of Financial Services Partners Pty Ltd AFSL 237 590 ABN 15 089 512 587. By Mark Dunsford, Director, Financial Service Partners. Fellow of AFA. At Financial Services Partners we provide qualified financial advice and assistance to many people in our area. Crafting the exact strategy for you requires understanding your current situation, and then providing a suitable outcome for you and your business. We can offer you a complimentary, no obligation consultation with one of our qualified financial advisers, to help you determine if you are on track to adequately protect your business against a personal health risk.

The advice you seek and implement today can make a significant difference to your superannuation and your ultimate retirement lifestyle. Your financial adviser can also help you make sense of the current market volatility. Take action now The team at Financial Services Partners Carrum Downs can help. They have already helped their clients protect their retirement savings and still stay invested. What’s more, they’ve actually won the Financial Services Partners Victorian State award which recognises their solid business performance. They are the largest financial planning business on the Mornington Peninsula and have been advising clients for 29 years.

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Mark Dunsford, Anthony Donnellan, Andrea Jenkins, David Williams and Priyanka Wijesekera invite you to make an obligation-free appointment to discuss your superannuation, life insurance, your expectations and your retirement goals.

July 2011 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

LOCAL GOVERNMENT

Foreshore parking charge FRANKSTON City will make a revenue grab by introducing paid parking along its entire foreshore. The city estimates it will raise $446,000 a year from 515 spaces, charging $2.50 an hour for pay-and-display parking. Residential ratepayers will receive two complimentary foreshore parking permits, applicable at all foreshore parking, except Wells St and Kananook Creek car parks, with their 2012 rates notices. Council will allocate $208,000 in the 2011/12 financial year budget set up “Pay & Display” parking at foreshore locations. Charged parking begins on 1 November. Also, ratepayers of residential properties in Frankston will receive two complimentary foreshore parking permits with the 2011/12 rates notice. One additional permit will be provided to residents upon written application and any additional permits will cost $60.

Correction An incorrect word in the article titled ‘Business assurance’ (BusinessTimes June 2011, page 13) may have clouded a point being made by the author, Mark Dunsford, director of Financial Services Partners. The article dealt with the potentially devastating impacts on financial stability if a business owner dies or has major health issues. Dunsford was explaining measures his company can take, including income protection, to maintain financial equilibrium in the face of such setbacks. In this corrected section, Dunsford is explaining another protection his company offers clients: “We will also ensure that you have an adequately prepared business will (buy-sell agreement) as many clients neglect to cover off on this most important part of insurance planning.” Mark can be contacted on 9788 5788.

Most use concessions for pool, golf FRANKSTON City Council will not offer additional pensioner concessions for its user pay services. A report on widening the concession base concluded that payment options be offered in cases of undue hardship The biggest uptake of current concession offers are by eligible card holders using Jubilee Park swimming pool. About 14,300 concessions so far this year have been granted for pool entry or combined pool/spa and sauna use. About 9000 concessions have been granted to golfers at Centenary Park playing 18 and nine-hole midweek golf. The highest value concessions are dog and cat registrations ($111,500); pool use ($26,750); and golf ($40,500). Total subsidies so far this year have topped $210,000. Existing council services that don’t offer

Teeing off at Centenary Park Golf Course, Frankston.

pensioner concessions include childcare (which attracts state or federal funding), home and respite care, home maintenance, meals-on-wheels, pound release costs, compost bins, immunisations (Fluvax and chickenpox) and boat launching fees.

Optus embraces ‘Fastcloud’ technology Optus Business Centre in Carrum Downs has expanded, launching a new arm of the business called Fastcloud. Optus managing director Wes Burke, who has overseen implementation of the new business section, has welcomed Anthony Cox who will head IT for the region’s Optus operation. “The rapid development of technology has really seen the telecommunication and IT industries converge,” Bourke said. “We have seen firsthand that the needs of business customers are changing so we have invested in an IT business to ensure that we continue to deliver real value to our large customer base. “With Fastcloud as the IT arm of our business, our team can now not only deliver great Optus solutions but also seamlessly integrate these solutions into an existing business IT platform. In addition to this anyone looking to start a new business can benefit from the right advice for both their business telecommunication and IT requirements. “For me, the successful recruitment of a quality IT professional like Anthony is a great win for our business and for our customers.” Carrum Downs Optus Business Centre has delivered products and services to local businesses for almost nine years. “Fastcloud is the latest innovation in our

14 | BusinessTimesFrankston / Mornington Peninsula / Dandenong | July 2011

OPTUS Business Centre managing director Wes Bourke and Anthony Cox, head of IT at the Carrum Downs headquarters.

continuing quest to provide up-to-the-minute technology based solutions for small and medium sized Australian businesses,” Bourke said. “Each day businesses become more reliant on their suppliers of technology to keep the business competitive – and the cloud is fast becoming the engine room of Australian business. Optus Fastcloud includes Fastcloud IT (business IT services designed to simplify the running of your business); Fastcloud Web (web design and search engine optimisation to attract new customers); and Fastcloud Telco (solutions to maximise staff productivity and control costs). Optus Business Centre / Fastcloud is at 45 Lathams Road Carrum Downs, 1800 119969 www.yesbusiness.net.au & www.fastcloud.com.au

neTWORKING

ASTON Ryan Malcolm (ARM), accountants, auditors and advisors, had marathoner Steve Moneghetti as gueast at the July Heroes Breakfast at Woodlands Golf Club. 1. Ed Harvey (left) and daughter Jacqui Harvey., of Yarra Valley Gourmet Foods, with Andrew Bonazinga, of St George Bank, Dandenong. 2. Moneghetti at the microphone. ARM’s Local Hero breakfast supports Irabina, families challenged by Autism Spectrum Disorder.

Breakfast at Barmah

PENINSULA Networking breakfast at Barmah Park on 7 June. 1. Robin Anderson, of HR Navigation, Gary Ebbot, of Melbourne Office Solutions, and Cr Bev Colomb, of Mornington Peninsula Shire Council.

Lunch for business

federal MHR, Bruce Billson (right) hosted a light luncheon for business owners attended by new Frankston MLA Geoff Shaw (left) and Shadow Treasurer Joe Hockey (centre).

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July 2011 | Frankston / Mornington Peninsula / DandenongBusinessTimes | 15

training for work

A cafe that is

SERVING UP OPPORTUNITIES By Keith Platt

WHEN talking to Sean Farmer it’s easy to believe him when he says he  loves being a strategist, making plans and formulating ways to bring  them to fruition. “I never stop refining, strategising, it’s my life.”

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This came after he explained how his company Pragmatic Training plans to expand its campuses in Frankston and Dandenong.   While governments are pulling back on education subsidises, Farmer is ploughing ahead with big ideas. “I had a five-year plan to ultimately create a big campus here in  Frankston. It’s year three now and we’re using just 2500 of the 4000 square metres we’ve got. But I’ve already planned some large student  recreation areas and we’re about to open two new rooms for beauty courses.”  Farmer is speaking while sitting at a table in a restaurant run by  Pragmatic as part of its hospitality course. He admits there is no money to be made from this particular side of the  business because of the high ratio of staff to students.   There are two trainers to a dozen students and Farmer says the course and cafe could be viable if the ratio was 20 to one “but not  everything has to have a profit motive”.   The motive in this case was to help youngsters break out of the cycle  of being unemployable.  “We want them to get to a point where they can get a job instead of  sitting in front of video games or walking the streets,” Farmer says.

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For reservations call 03 9771 6000 or visit www.chifleydoveton.com.au Cnr Princes Hwy & Doveton Ave, Eumemmerring VIC 3177

16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2011

LEFT: Sean Farmer, CEO of Pragmatic Training with campuses in Frankston and Dandenong. RIGHT: Sean Farmer with beauty trainer Kelly Wright at Frankston. PHOTOs: KEITH PLATT

He has seen too many people “fall outside of the norm, end up in prison  or as couch potatoes watching TV”.  “My wife Helen and I wanted to see if we could run a program to help what’s a scourge of a poor social system which can sometimes lead to suicide.”  The cafe opposite the dormant Peninsula Centre in Nepean Highway, Frankston, has been running since mid-2010, teaching 140 students various skills centred around cooking, but ultimately leading to  increased self esteem and encouragement to seek further education or  employment.   “It’s the home economics that no one ever did and provides good motivation for shopping and cooking for themselves. “If people learn these skills it

improves an area, and we’re big supporters of Frankston.” Farmer predicted Frankston was “about to see massive change, but it must begin with youth”. “If we get to them at 15 or 16 they won’t be out punching people at 25. We’re giving people more options and opportunities, improving their self esteem.” One of the trainers at the cafe is also a liaison officer, helping students deal  with police, living conditions, managing money and basic survival.  Farmer says he has met with students who knew virtually nothing about vegetables. One boy didn’t know what a potato was. He knew French fries and potato chips, but not the vegetable from which they were made.   At the end of the 12-week course the hospitality students have cooked  dinners, lunches and desserts, served coffees, waited on tables and  cleaned floors.   They have also learnt that employers expect them to arrive at work on  time, show respect and take and give instructions. The cafe caters for functions and is open to the public two days a week and counts local MPs, councillors and students’ parents among its regular clients.  Although the hospitality course and teaching “what a lettuce is” is obviously close to Farmer’s heart, from a business point of view it is the aged care, business, beauty and staff training that is at Pragmatic’s core. Farmer started Pragmatic eight years ago with seven staff. Today, there are 3000 students at any one time and up 90 staff members.

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July 2011 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17

MANAGEMENT

Partnering with your suppliers Sourcing the optimum supplies to run your business is one of the major challenges facing any business leader, irrespective of the size of your organisation. Larger organisations will have a procurement function to take on this responsibility but, in smaller businesses, the business owner often does this job personally. Either way, the procurement process should create significant value by being directly linked to the strategy for the business. If this process is done well, it will set up the potential for a profitable long-term business. The procurement process has major strategic elements, but is also critical to the tactical operation of the business. At the strategic level, procurement must ensure that you can source the right quality products in the right quantities at the right time with the right price, reliably. At the tactical level, procurement must deliver to the business the correct quantity of each specification of raw material at the right frequency, which often means on a daily, even hourly basis. The broad procurement skill set needs to understand how all of these success factors have to be balanced optimally if your business is to perform at a sustainable high level. Many larger organisations have realised the criticality of procurement in the past decade or so and there has been an increasing focus on this function as business leaders have recognised that their business cannot succeed unless the procurement team is intimately involved in the development and implementation of strategy. I recently had the opportunity to conduct a working session at a forum for 43 chief procurement officers for a wide range of Australasian organisations, ranging from BHP to Schweppes to Singapore Health. It was fascinating to hear their stories of the value created in their businesses by the application of the sound analysis and restructuring of their whole approach to the sourcing of goods and services. In general, I was able to understand how they had gone about creating value for their business. They typically used a process of

Hamish Petrie*

Business Consultant

mapping the entire current procurement process as a start point to ensure that they understood exactly how the current system worked. They identified all the sources of waste, including the obvious ones of time, people, and materials, but also examined transportation, inventories, over and under supply, and defects. This then led to a forensic analysis and review to determine where identified wastes could be reduced or eliminated. This was followed by a reinvention of the whole process to ensure that all of the processes produced the maximum value for all of the strategic and operational criteria. A general theme was that the best results were obtained where the major suppliers became true business partners. This meant that they would understand your business at both the strategic and operational levels. They would understand how they

The procurement process should create significant value by being directly linked to the strategy for the business. could create value for you and they would often take over the operational coordination of materials flow so that your people could concentrate on their processes and customers. While this sounds relatively simple, it is actually a very difficult process where winners and losers can be created. Sometimes, the losers were long-term suppliers who had failed to realise just how much the world had changed recently. Nevertheless, at the end of these processes, most procurement teams had created real value for their organisations. Virtually all organisations had experienced major resistance to change and the careful handling of people who worked

18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2011

in the current state was a very important consideration. Sometimes, it was very hard for them to see how people who had never done these jobs could come in and reinvent their work. Hence, change management skills were often put to the test before new work methods could be fully implemented. In smaller businesses, these same tools and techniques can create the opportunity for change and value creation. Mapping the current state is always a great starting point to clarify current processes such as workflow, number of people and time. Actually doing this by hanging a chart on a wall and inviting the current people to review it will ensure that it is correct and help them to buy into the need for change. All of the wastes on the chart can be identified with a different colour pen. You can then work on a future state map, which focuses on the elimination of identified wastes. A big factor in many businesses is the level of inventories and the reliability of supplier shipments, so a close examination of this area will often reveal new wastes. Developing a system that allows you to pull supplies into your operation with the minimum of intervention by your people can dramatically change the jobs of your operational people. From any perspective, reviewing and optimising your suppliers can really change the operation of your business. This may result in fewer suppliers, but those that remain should really understand your business and work more closely with you as a business partner. Action Planning Questions: 1. Do you have clear accountabilities for the procurement process in your organisation? 2. Have you mapped your procurement process to examine how current information and materials flow to and from you and your suppliers? 3 Have you developed a future state map that eliminates wastes and pulls products from your suppliers to match your operational needs? 4. Have you considered how to manage your people as you redesign how their work ÂŠ Hamish Petrie 2011 is changed? *Hamish Petrie had a 37-year corporate career including 29 years with Alcoa Inc. His last position was as VPâ&#x20AC;&#x201C;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.

frankston arts centre

The business of sponsorship BUSINESSES sponsor and support the arts for many reasons: most commonly because they feel a corporate responsibility and the arts help foster healthy communities. Businesses feel the need to contribute to the community in which their customers and clients live. They are putting something back to help sustain and strengthen that community. There can be economic benefits, too: the opportunity to promote goods and services to a new clientele. This month BusinessTimes asked three sponsors of Frankson Arts Centre (FAC) why and how they support the arts and other community activities.

marketing collateral being displayed in the foyer, on the website and on screens throughout the centre. There are also many opportunities for corporate hospitality through the great range of pre-theatre dining packages and extensive range of shows staged at the centre. “We have certainly mentioned our involvement with The Frankston Arts Centre in various business discussions and publications. Grenda supported the FAC with its ground-breaking production of ‘Go Away, Mr Worrythoughts!’ The show has been touring and performing directly in Victorian schools so that a greater number of students have been able to benefit from the production. Grenda provided transportation for the actors and crew and also sponsored the Teacher Resource Kit. Sarah can be From left: Malcolm Taylor, Sarah Hardy and James Tonkin. contacted at info@grenda.com.au

Sarah Hardy Marketing and communication manager, Grenda Transit Management. “Grenda has a diverse and long-standing history of supporting the arts and community events. We have supported FAC, The Drum Theatre in Dandenong, The Choir of Hope and Inspiration (formerly the Choir of Hard Knocks) and Dandenong Youth Art Competition, ‘My Place, My Future’. In April, 2008, in conjunction with the City of Greater Dandenong and Vic Urban, Grenda was significantly involved in a major art project as part of the Revitalisation of Central Dandenong. “Seven artists were given just seven days to create temporary artworks at the historic Grenda’s Bus depot in Dandenong, just before its demolition. The resulting large scale installation, using materials from the site and associated industrial spaces,

received national acclaim on the ABC’s Sunday Arts program. “Businesses have a duty as good corporate citizens to give back to the communities which support them, whether it be to sporting organisations, charities, educational institutions, the arts and so on. “The arts are worthy because the sector is often underfunded and relies on government, philanthropic and business support in order to survive and prosper. “From a company’s point of view there is great benefit in knowing that Grenda’s support of FAC is allowing individuals who may not otherwise have access to the arts to visit the centre and be exposed to new opportunities and inspiring performances. “Frankston Arts Centre has offered Grenda a variety of marketing opportunities such as running promotional stands in the foyer of the centre at events. This has allowed the company to meet existing and potential customers and to communicate on a personal level. “From a branding perspective, there is a great deal of exposure offered through logos and

James Tonkin General manager of corporate affairs, ConnectEast “ConnectEast has been a proud supporter of a number of community projects and causes along the EastLink corridor since construction of the motorway started in early 2005. “This support has continued into our day-to-day operation of EastLink, with our community investment focused on this geographic region of Melbourne and including road safety and cultural enhancement. “In addition, ConnectEast is pleased to provide the 35km EastLink Trail for the use of local communities, the $5m collection of public art alongside the motorway and trail, and also to stage the annual Hanover ConnectEast Ride for Home fundraising cycle event on EastLink (13 November 2011) in support of the thousands of Victorians who are affected by homelessness. “ConnectEast is proud to support the Frankston Arts Centre because of its excellent program of high quality events which appeals to ConnectEast’s broad customer base and the fact it is so easily accessible at the end of EastLink for communities stretching from Mitcham and Wantirna to Knox and Dandenong.”

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Malcom Taylor director, White Cleland, lawyers, consultants and notaries. Frankston Arts Centre’s principal partner. “Our company has always taken the view that it is important to give back to the community which supports our business. “We have done it for 50 plus years through pro-bono legal services, giving time and expertise through membership of boards and committees, and by direct sponsorships or donations.” “We live and work in the Frankston/Mornington Peninsula region and thus want to do what we reasonably can to help make it a better place for everyone who lives here. “FAC is a wonderful facility that provides a truly valuable contribution to many facets of the community’s life. We are proud to be associated with the centre and all it stands for and achieves. “Our motivation for all our community support is the benefit it can bring to the recipient organisation and the Frankston/Mornington Peninsula region generally. We have no expectations as to what it might bring to us.”

To discuss business partnerships with FAC, call Gillian Thompson, 9784 1056; email: gillianthompson@ frankston.vic.gov.au

BOOKINGS 03 9784 1060 www.artscentre.frankston.vic.gov.au

July 2011 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19

HEALTH

The problem with sugar... It’s a strange phenomenon that even though we know differently, we still seem to think that in order to lose weight, we should eat reduced-fat foods. Well, how has that strategy been going? Is it working for you? My guess is that it’s not – for you or anyone else. All that reduced-fat yoghurt, “diet lite” this and 99 per cent fat free that – it’s all BS. That stuff is not only not helping you lose weight, it’s actually making you fatter, and according to the latest research more susceptible to heart disease. The consequences of a high-sugar diet are not really news. Health professionals of all persuasions have been pointing them out for quite some time. Problem is, they’ve not been saying it loudly enough to drown out the marketers who continue to sell us the pitch that eating fat makes you fat, and the corollary that reduced-fat is somehow healthy. We’re an easy mark for advertisers because it seems intuitive: I’ve got lots of fat? I’d better stop eating it! But the weight problems of modern man have very little to do with dietary fat and everything to do with sugar. In the discipline of Chinese dietary energetics, the problem is specifically too much of the sweet flavour, but more on that further down. Listening to ABC radio recently I heard a discussion with a lawyer turned self-styled health campaigner on the topic of fructose (the sugar contained in fruit), its addictive nature and its connection to not only weight gain but a raft of medical complications – including depression. The campaigner, David Gillespie, has a book called Sweet Poison, in which he outlines how modern society has become

Michael Ellis*

Chinese Herbalist

addicted to fructose. His radio discussion was couched in terms of the bio-chemistry of sugar metabolism and also that of addiction. Immediately someone starts talking seratonin, dopamine, cell receptors etc. my eyes tend to glaze over but his case was so compelling – and fit so well with what Chinese medicine says on digestion – that I stayed with it. It’s quite unusual to hear a Western health perspective that takes a systemic approach – that is, to hear someone talking about the inter-relationships between physical and mental health. I think there is actually way too little of what Gillespie is doing – drawing together the threads of widely diverse research to paint a bigger picture. But cutting back to the chase, as you may gather from the title of his book, Gillespie’s thesis is that fructose is public enemy No.1. He makes the point that going back only a short time (in evolutionary terms) very little fructose was in the human diet. Fruits were eaten only seasonally, were certainly not freely available, and fructose was certainly not added to virtually every processed foodstuff as it is today. He also points out that plants have a vested interest in making their fruits attractive to animals as it helps distribute their seed. In the body it appears to trigger the same neurological pathways of desire-satisfaction of many addictive substances.

That’s why we easily get addicted to the sweet flavour. Food manufacturers know that, which is why they add sugar to their products. Basically what Gillespie is saying is that most of us are junkies. We’re addicted to sugar. Now the problem is that we use sugar for energy, and we store away any unused sugar for future energy requirements in the form of fat. In a nutshell, fat is stored sugar. In an evolutionary sense, we’re designed to use that fat for energy, but we rarely do so because our bodies simply run off this constant input of sugar. If this goes on long enough, we start to mess with our bodies’ ability to convert stored fats back to sugar and can start to develop a whole host of metabolic illnesses, such as diabetes and cardiovascular disease, and also various mood disorders. This is far and away the best Western explanation I have come across to help explain the modern “epidemics” of obesity, diabetes, allergic conditions such as asthma, the host of increasingly prevalent auto-immune diseases, attention deficit disorder, and also depression. It accords with Chinese medicine thinking in that all these confounding illnesses have at their root a weakness of the digestive system – not so much of the stomach but of the pancreas and the ability of the body to absorb and use nutrients. This function, according to the very first textbook of Chinese medicine, written 20 centuries ago, is compromised by the sweet flavour. A small amount of sweet is strengthening, but too much sweet is damaging. Just how damaging is becoming increasingly apparent. There’s more on this at www.howmuchsugar.com * Michael Ellis is a registered Chinese herbalist in Mt Eliza: www.mtelizaherbal.com.

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20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2011

MARKETS

A sliver of sunshine: power storage There is so much bad news flowing in and around the market, readers may appreciate a small sliver of sunshine. What about Redflow, a company that has just two or three competitors globally, is a world leader in its field, has 20-year patent protection, potential for sales in dozens if not hundreds of countries, is ramping up manufacturing and, to boot can make a contribution to carbon reduction? Richard Campbell* Stock Analyst

New Zealand utilities are installing flow batteries to combat constant earth movement. Bushfires and floods create similar problems. We will have more of those. Another is power storage but, while lead acid batteries work well, they are more suited to short bursts of power than a

Richard Campbell is Executive Director of Peninsula Capital Management. Tel. 9642 0545. email: Rcampbell@peninsula capital.com.au

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Sounds most unlikely, but wait. The founders – two engineer brothers – spent many years developing a type of battery which would be compact, cheap, recyclable, could scale to megawatts. They understood that energy grids were becoming more expensive to maintain and upgrade as more and more devices, particularly air-conditioners and plasma screens became standard. Grids kept extending as suburbs sprawled outwards. Peak loads also were peakier as working patterns changed. Renewables like wind and solar also arrived, adding to the mismatch between demand and supply. In big cities like Karachi, Mumbai and Manila the issues are even worse. Grids designed for four to five million people now cope with three times that number. People steal power. Brownouts occur, sometimes daily. Even in advanced countries there are problems. An overload can have massive repercussions. A few years ago the entire north east of the US lost power as linked grids failed. Not good for people in lifts, on trains or in surgery. These are big issues. One answer is peak load power stations, either gas or hydro; but they’re expensive and often unsuitable.

sustained draw of current. But there is another approach. Flow batteries store charge in the fluid. Discharge and charge can occur tens of thousands of times without degrading components. There was a long history of problems and failures, but solutions slowly emerged: a compact, low cost battery small enough to deploy around the grid and smart enough to charge (by wireless) when demand is low and release as demand rises. It helped that Ergon Energy of Queensland offered to buy early if the price fell on volume production. An order of 10,000 units from one small corner of the world has a certain ring about it, especially when the Ergon was wise enough to allow a fair margin. To cut the story short, production models followed prototypes. Redflow is ramping up output – naturally not in Australia, but we can’t have everything. By combining 48 in one container, megawatt power can be delivered for power station load levelling be it coal, solar or wind. Even bad news seems to be a help. Earthquakes shake power poles; wires fall. New Zealand utilities are installing flow batteries to combat constant earth movements. Bush fires and floods create similar problems. We will have more of those. The bad news is that this company is early stage and speculative. The good news is that few know about it; fewer still understand the technology or the scale of the market and, best of all, the Australian stock market is depressed, distressed with very shrivelled investment horizons.

There’s no substitute for local knowledge. And we’re as local as it gets. Your Commonwealth Bank Local Business Banker has the local expertise and knowledge to help your business grow and succeed. To put us to work for your business, give Elissa MacSporran a call today on 5100 0703. commbank.com.au/business Commonwealth Bank of Australia ABN 48 123 123 124. CLA1108

July 2011 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21

NEWS WHEELS

Audi’s Q7 is a very large SUV by Australian standards as it was primarily designed for the US market. It works well on the country roads in Australia where it makes a superb cruising machine that simply lopes along. Its sheer size gives it a voluminous interior that’s complemented by big comfortable seats. Indeed, the front bucket seats are almost like armchairs. The Audi Q7 can be a handful around inner city and close-suburban areas, particularly in cramped car parks. Those looking for an SUV in those situations may be better off with an Audi Q5. Audi Q7’s dynamics are more European oriented. It offers good road grip and reasonably precise control. You wouldn’t call its handling nimble but the Q7 remains well under control at speeds well above those likely to be tried by the traditional SUV owner. While there is space inside the big Audi for seven people it’s probably best used as transport for four adults and three children. There’s good legroom in the centre-rear seat, though the large centre tunnel makes life less comfortable for the person in that seat than for the lucky pair beside them. There’s very good luggage room if the two back seats are folded down. Access is simple, though the height of the luggage space off the ground could make life difficult for shorter people – that is until they use the variable ride height suspension control to drop the big Audi down to a much more manageable level. The adjustable suspension also has settings to increase the ride height for genuine off-road conditions, as well as dynamic settings to improve handling. Due to the harsh global economic climate during the design stages of the 2011 Audi Q7, the German company sensibly put its efforts into mechanical changes rather than aesthetic ones. So the changes centred around lowering fuel consumption and exhaust emissions. The Audi Q7 that we reviewed had a second-generation 3.0-litre V6 turbodiesel powerplant that’s completely new. It produces 176 kW of power, a number that would have been unheard of from a diesel engine 10 years ago. Even more impressive is the Q7’s 550 Nm torque. This big-grunt engine is a delight to sit behind, with all that torque moving the big Audi Q7 along with a minimum of fuss. It’s smooth, quiet and more responsive

BIG and stylish, the Audi Q7 comes with an array of economical engines.

Superb people mover

Ewen Kennedy Motoring Journalist

than the average turbo-diesel due to using the latest in turbo technology. When cruising the engine is all but inaudible and when you want to accelerate hard it puts out a deep growl to let you know it’s providing you with the performance you need. Diesel consumption is normally in the eight to nine litres per hundred kilometres bracket in country and motorway driving, and will tend to sit at about 10 to 12 litres per hundred when working around town. Part of this impressively low fuel consumption is a stop-start system; this switches off the engine when the Q7 comes to a standstill and restarts it when the driver releases the brake pedal. This can make for significant fuel savings and emission reductions in heavy traffic conditions, where vehicles are at their most damaging. We were surprised to find the stop-start was quite noticeable in its actions; usually a V6 engine smooths out a stop-start till it’s all but imperceptible. The stop-start can be switched off but we anticipate that

22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2011

owners of fuel saving vehicles like the Q7 will leave it on and simply tune it out of their minds. Overtaking is ridiculously easy thanks to all that power and torque, with the big Audi spending a minimum of time on the wrong side of the road. A key feature of the improved efficiency is the introduction of a new eight-speed automatic transmission that lowers fuel consumption by about five percent. The transmission lets drivers choose between Drive and Sport programs, as well as to make their own manual gear selections, either by way of the gear lever or steering wheel paddles. Though we did experiment with the automatic’s manual programs we soon found that there’s so much torque and the

INFRASTRUCTURE

TESTING: AUDI Q7

auto is so quick in its actions that the Q7 was best left to make its own decisions. Audi Q7 isn’t a vehicle for everyone, but if you routinely carry more than three passengers and want to give them a real taste of luxury, and would like to enjoy some light to moderate off-road exploring then this may be just the SUV you need. MODEL RANGE Q7 3.0 TDI 3.0-litre turbo-diesel five-door wagon: $88,614 (automatic); Q7 3.6 TFSI 3.0-litre petrol five-door wagon: $93,814 (automatic); Q7 4.2 TDI 4.2-litre turbo-diesel five-door wagon: $127,814 (automatic); Q7 6.0 TDI 6.0-litre turbo-diesel five-door wagon: $254,814 (automatic).

Port control back with Hastings THE state government says creating a new Port of Hastings Development Authority will set Melbourne’s commercial ports on a path to faster growth through increased capacity and reduced port charges. Legislation establishing the new authority gives responsibility for the port of Hastings channels and waters to the Victorian Regional Channels Authority. The port authority will prepare a development strategy and a “comprehensive business case”. Planning Minister Matthew Guy told

parliament that a separate container port at Hastings “will deliver the benefits of greater competition to Victorian exporters and consumers of imported goods”. “The government is acting now to ensure that a container port is developed at Hastings within the next 10 to 13 years.” Although the legislation takes control of Hastings away from the Port of Melbourne Corporation Mr Guy said it would “complement the PoMC in meeting the state’s need for increased port capacity”.

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