CCBR June 2012

Page 1

Print Post Approved – PP212564/0002

Vol 23 June 2012

Published monthly (except January)

Innovation Summit report

Coast economy remains weak Brand Group leads the way with rooftop solar farms Long Jetty businesses applaud revitalisation plan f e at u r e : h a l f ye a r p r o p e r t y m a r k e t r e v i e w - pag e s 18 - 19

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S AT U R DAy 18 AU G U S T 2 01 2 The Show Room, Mingara

Central Coast Premier Business Event for 2012

17 AwA r d s • Business of the Year • Employer of Choice* • Excellence in Innovation* • Excellence in Manufacturing • Excellence in E-Business • Excellence in Marketing

• Business Leader* • Excellence in Home-Based (Micro) Business • Excellence in Business Sustainability* • Excellence in Service • Excellence in Small Business*

• Future Business Leader* • Excellence in Business Ethics* • Excellence in Export* • Local Chamber of the Year • Excellence in Medium Business • Excellence in Large Business

I n de pe n de n t J u d g e s Judges Graham Baker – Innovative Regions Facilitator, Frank Sammut MIE Aust – Consultant, Dr Anton Kriz, Senior Lecturer University of Newcastle, John Knight, Jo Heighway, Donna Bailey. Nominations close 6 July 2012 To obtain your nomination form (with judging criteria) please contact: kerry@ccbea.com.au

Alliance Partner


IN THIS ISSUE

Cover Story

Regular features

Innovation Summit report

6

Edgar Adams Editorial

4

Minister opens Innovation Summit

Our future is all about innovation

5

I nnovation Summit stimulates Coastal creativity

16

Business briefs

20

Property reports

24

Insurance - Understanding Your Options

25

Business tips

28

Events calendar

29

Eating out

30

Funny business

Business news 7

Uni to benefit from NBN Global Access

8

Coast economy remains weak

10 Long Jetty businesses applaud revitalisation plan 12

Grammar’s green Science block

13

University welcomes new Chancellor

14 Brand Group leads the way with rooftop solar farms 15 Ultraserve expands with next generation cloud technology

Feature 18

Half Year Property Market Review

Comment 24

Driving the Coast into a better economic future

Tourism News 11 New pedestrian walk for The Entrance/ Tuggerah Lake

Front cover: delegates at Innovation Summit

Contact

June 2012

Phone 02 4367 0733 Fax 02 4367 0744 Email info@ccbusinessreview.com.au Web www.ccbusinessreview.com.au

CENTRAL COAST BUSINESS REVIEW

3


I NN OVAT I ON SU MMI T REPORT

Minister opens Innovation Summit Senator The Hon. Kate Lundy, Minister for Sport, Minister for Multicultural Affairs and Minister Assisting for Industry and Innovation was in Ettalong in mid-May to open the 2012 Central Coast Innovation Summit. With some 230 participants from around the Central Coast, this year’s Summit, which follows on from the 2011 Inaugural Summit was hailed a huge success by keynote speaker, Paul Budde. Mr Budde is an independent telecommunications researcher and consultant and owner of BuddeComm. He is a Board member at Global Smart Grid Federation and Special Advisor at ITU/ UNESCO Broadband Commission for Digital Development. He spoke on the economic and social benefits the Broadband will bring to the Central Coast region. The theme for this year’s Summit was: Creating the Knowledge Economy: Implications for the NBN and New Technology on the Central Coast. It was endorsed by Central Coast Broadband Infrastructure Group (CC-BIG) and Regional Development Australia – Central Coast. Speakers at the Summit included Dr. Anton Kriz, Senior Lecturer at Newcastle Business School and Chair of the Central Coast Innovation Festival, Michelle Tabet, Senior Strategic Designer at

Arup, Frank Ruhl, Emerging Technology Manager Fixed Network Technologies for Telstra. Also speaking were Ross Hampton, Business Development Manager - Public Sector for Cisco Systems Australia and New Zealand, Professor Caroline McMillen, Vice Chancellor Newcastle University, Jason van Genderen, Creative Director at Treehouse Creative. These speakers presented their thoughts on the designated theme and how businesses on the Central Coast could embrace the NBN within their own businesses, relative to the speakers’ own fields of expertise. A message which was communicated throughout each of the presentations was the need to embrace and act on innovation which already exists here on the Central Coast. With the development and implementation of the NBN network, reference was made on a number of occasions that the NBN will secure and benefit the future of our businesses and the Central Coast Region. What is important to note is that the NBN is much more than faster connection speeds and the ability to download larger files. It is the educational, health and business possibilities that will offer opportunities which have previously been difficult or even impossible to achieve.

YO U R B U S I N E S S H A S A N E W Workplace

OH

Senator The Hon. Kate Lundy opening the 2012 Central Coast Innovation Summit

Telework One such area is telecommuting or teleworking. With up to 40,000 Central Coast residents commuting daily to either Sydney or Newcastle, there is the very real potential to educate and inform these employees and their employers of the many advantages of teleworking. With the NBN, teleworking for Central Coast residents will become a viable option and will create numerous business opportunities for existing businesses based on the Central Coast. To increase awareness, Australia’s first National Telework Week will be held on 12–16 November 2012 to highlight the importance of working from home. Continued on page 26

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June 2012


INNOVATION SUMMIT REPORT

Innovation Summit stimulates Coastal Creativity The Central Coast Innovation Festival invited Jason van Genderen, Creative Director from Treehouse Creative to speak on the implications of the NBN and creativity and innovation. With numerous creative awards to his name including his latest being the Winner – Mobile Masterpieces, Tropfest Sydney 2012, Mr van Genderen clearly has the international credentials which allow him to speak with authority on the creative potential of the NBN. In a creative sense, innovation has two components – idea generation and idea/ concept implementation. The nature of innovation can be incremental or quite radical so the level of creativity or novelty can vary significantly. Ultimately, within every business lies the possibility to harness this creativity and innovation. During his presentation, Mr van Genderen used a quote from Craig Davis, Chief Creative at J. Walter Thompson (a leading global advertising agency) to illustrate how important it is to be creative and innovative: “We need to stop interrupting what people are interested in and be what people are interested in.” For creatives such as Mr van Genderen, the NBN will afford his business and others like his, opportunities never seen before and the ability to be what people are interested in, to a far greater degree. High definition video uploads and down-

Jason van Genderen

loads will be quicker, as will the ability to collaborate seamlessly across the world and best of all – it can all be done here on the Central Coast, courtesy of the NBN. “We should remember that innovation is not simply about products, creativity and innovation but also processes, management and the business model. A good business model will have the capabilities to embrace change,” he said. Without doubt, the NBN will bring this change. We know from experience

By Brooke Simmons

that change is not always welcomed with open arms. However, with so many possibilities and opportunities it is up to each business how they decide to embrace that change, through their own innovations, which will dictate the future of the “knowledge economy”. The “knowledge economy” is focused on generating economic benefits as well as job creation. With more possibilities being opened up to the Central Coast via the NBN, the creation of additional, exciting and innovative jobs on the Central Coast is sure to be a direct result. Mr van Genderen concluded his presentation with a quote from Albert Einstein: “Imagination is more important than knowledge”. It is this quote which is sure to have inspired the audience to harness their creative energy and use it within their individual businesses. His presentation combined examples of previous ways of completing tasks with examples of how the NBN will change the process and how we’ll be doing these tasks in the future. Without question, the opportunities are brilliant, as will be the creative innovations which will be generated because of the implementation of the NBN on the Central Coast. All that remains is for business to wholeheartedly grasp this innovation, explore the possibilities creatively and implement this amazing technology.

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5


E D I TO RI A L Edgar Adams discusses local issues

Our future is all about innovation This month we report on the Central Coast Innovation Summit the theme of which was Creating the Knowledge Economy: Implications for the NBN and New Technology on the Central Coast. You may think that we at CCBR are dwelling too much on the NBN and Innovation and should you do so, it would be a good idea to read those articles against the backdrop of our article on the regional economy (Page 8) which the Central Coast Research Foundation reported on last month. There is no doubt that much of Australia is caught in a recession that is hidden by the mining boom and this is exacerbated by a State economy that was driven into the ground by the previous government. Historically, the Central Coast economy has always suffered much more than most regions and we take longer to recover. Our region is certainly trapped in a recession. One only has to talk to businesses at the pointy end and the conversation soon becomes pretty depressing. It’s a long time since we had a real recession. There have been ups and downs since 2000 but the last real recession was “the one we had to have” in the early 1990s. A lot of people in business remember that but a lot don’t, after all it’s twenty years ago. There is an old saying, “when times get

6

CENTRAL COAST BUSINESS REVIEW

tough the tough get going” and we are talking to a lot of tough people who are battening down and working harder. Their only comment is that the “mob in Canberra” don’t get it and the boys in Macquarie Street still haven’t woken up to the fact that they are in government. This brings me back to Innovation and the NBN because there is a new line of thinking among many business owners and managers. Innovative ideas and processes is what will ultimately set us up for the good times that will come around again. Newage businesses are bobbing up everywhere and our region is no exception. These are the ones that we need to nurture and encourage and I must say there are people in government who see it this way. After all we have our own Innovative Regions Facilitator, Graham Baker, and there are only ten in all of Australia. So, while we are busy bagging the Federal Government (justifiably so in many cases), it is worth noting that they see innovation as our future too. So to the Innovation Summit where 230 people came along to learn about new technology and how the NBN will drive their businesses into the future. We should congratulate the two blokes who put a lot of time into this Summit (the first was last year) to make it a success – Anton Kriz and Frank Sammut,

both of whom head up the Central Coast Innovation Project funded by the Federal Department of Industry, Innovation and Science via the Central Coast office of Regional Development Australia. So this month can we tell the Feds what a good job they are doing in respect to innovation and the NBN rollout and leave the other stuff until another day? Our story on the Coast’s economy remaining weak should be a concern for our political leaders. The Coast economy has been going sideways for far too long and yet our State and Local Government politicians get off the hook all the time. Out of all our politicians there is not one leader among them. No one who will stand up for the common good. And that’s the problem with our economy – too much self interest all round. Edgar Adams Editor

Hear Edgar Adams’ business comment 8.10am each Monday. Also follow us on Facebook and Twitter

June 2012


business N ews

Uni to benefit from NBN global access “The NBN will essentially breakdown the physical barriers of education and create the “global classroom” – an initiative which is already embraced in the US and other parts of the world,” said Professor Caroline McMillen, Vice Chancellor of Newcastle University, speaking at the 2012 Central Coast Innovation Summit. “Students will mingle with other students from Ourimbah, Killara, Los Angeles and Tokyo, yet they will all be in the same space, learning the same material from educational leaders, such as the University of Newcastle,” she said. In 2010 there were 35,493 students enrolled at the University. Of those students, 4,205 attended the Ourimbah campus. Imagine what that number could be after the NBN is rolled out. The University is ranked in the top four per cent of world universities, and is ranked 291st university in the world and most impressively, is in the Australian top 10 universities for research funding and outcomes. Professor McMillen went on to say, “What these rankings illustrate is that Newcastle University, with its campus at Ourimbah, is World Class. “With the connection of the NBN, it will extend the reach, availability and quality of these education services from the University of Newcastle, no matter

By Brooke Simmons

Caroline McMillen

where students live, around the world. “On a local scale, for those students who have trouble accessing public transport, or due to work commitments or family responsibilities, can’t attend physical classes, this opportunity through the NBN presents a viable solution. “Another educational benefit of the NBN is that with faster and more reliable broadband it can enable more intensive and immersive online interactions for students, through the increased use of applications such as high-definition video for interactive instruction and learning. “Additionally, more students will have access to educational services such as YouTube University and iTunes U (university courses made available through

iTunes) where classes are pre-recorded for students and downloaded at their discretion. Outcomes will be enhanced as students won’t necessarily have to “attend” a lecture if they are unwell or completing another assignment. “Imagine our local students being able to share ideas, complete assignments and build connections with other students across the globe and, all the while, using this shared knowledge to continue building the Central Coast Region. “Beyond the global classroom, studying and researching will take on a whole new dimension. The University of Newcastle library already invests over $9 million per annum in scholarly informaContinued on page 27

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business news

Coast economy remains weak The Central Coast Research Foundation has reported on the Central Coast Economic Indicators regional economy for the March 2012 Quarter saying that most indicators were ofrelatively weak, withCoast low levels of Number employed persons – Central confidence playing a significant role '000 in shaping its direction. There was, 160 however, some recovery in employLinear Trend ment numbers during the second half 150 of 2011 and early 2012, but many of 140 the jobs created were part-time. 130

120 110 MAR 09

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MAR 11

MAR 12

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SOURCE: Australian Bureau of Statistics, Monthly Labour Force Survey

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65%

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55%

50% MAR 09

Sydney to Newcastle

LL SERVING A SUBURBS

10 MAR 11 MAR 12 “21 MAR Years on The Central Coast”

SOURCE: Australian Bureau of Statistics, Monthly Labour Force Survey

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CENTRAL COAST 3 mth moving average

9% 8% 7% 6% 5%

NSW 3 mth moving average

4% 3% MAR 09

MAR 10

The number of employed Central Coast residents in March 2012 at 145,500 was 11.1% higher than in March 2011. Labour market - Part-time employment When viewed over a 10 year period, Numbers of part-time employed, March 2012 and March 2009 using the CCRF’s Economic Indicators, Male part-time Female part-time theMarch number employed has risen 2012: of people 14,700 37,100 March 2009: 12,200 43,500 from 128,500 to 145,500 an increase of The chart during below). the three years to March 13.2% or opposite 17,000shows (seethat,Table 2012, there has been a slight downward trend in full-time These figures include the comemployment in the Central Coast andregion’s an upward trend in parttime employment. This has ramifications for regional earnings muter population which has been estiand, to the extent that the employment is casual, carries with it loss ofbetween job security 30,000 and uncertainty income. The majority of mated and of40,000 and, part-time employment is carried out by females, and as such anecdotally, is considered to be increasing. may partly represent choice associated with juggling other

aspects of life such as family. The highest growth in employment in the year to February 2012 was in the retail, accommodation and food services and construction industries, which are traditionally employers of casual and part-time staff. Nationally, the nature of employment is changing and this data reflects these broader trends as well as the make-up of the regional economy.

March Quarter

Number of Central Coast persons employed

2003

128,500

MAR 11

MAR 12

SOURCE: Australian Bureau of Statistics, Monthly Labour Force Survey

The Central Coast Research Foundation

2005

130,400

2006

143,300

2007

135,800

2008

139,700

2009

135,700

2010

146,300

2011

131,000

2012

145,500

Numbers of part-time and full-time employed – Central Coast 120 100 80

Full time

Part time

60 40 20 0 MAR 09

MAR 10

MAR 11

MAR 12

SOURCE: Australian Bureau of Statistics, Monthly Labour Force Survey

Difference between preferred/required hours and actual hours

In March 2012, part–time employees in the Central Coast worked almost 5 per cent more hours than they required or preferred. While this may put strains on the workers involved, the economic perspective on the data is positive, as it suggests recovery in the demand for labour and may signal the ability to recruit or increase hours over the longer-term. There has also been a downward trend, over the past three years, in the proportion of Central Coast employees who are long-term unemployed (unemployed for more than 52 weeks) (not shown on chart). This may be partly attributable to government and social enterprise initiatives in the Region, aimed at providing opportunities to people who encounter barriers to labour force entry. Provision of this type of opportunity often has profoundly positive effects upon individuals and can also help address issues such as crime and entrenched dependence on welfare. Cumulatively, this can increase the skill base available for business and improve the Region’s social fabric and liveability. Source: CCRF/ABS, Monthly Labour Force Survey

Labour market - Employment intentions

2012 – proportion Central Coast businesses expecting TheMarch report says thatofover the past 3 years to total employment to increase March 2012 there has been a slight downOver the next 3 months: Over the next 12 months:

ward trend in full-time employment and an upward trend in part-time employment Central Coast Economic Indicators (see following Chart).

Unemployment Rate of over and under-employment

Labour market - Hours worked – over and 2004 127,900 under-employment

Participation rate Offices ShowCentral Coast and NSW rooms Clubs

60%

Employment

10% (March 2011: 10%) 15% (March 2011: 16%)

The majority of Central Coast businesses expect to maintain their current levels of employment over the next three months (81%) and the next 12 months (72%). Nevertheless, the proportion who expect to increase their employment is higher than the proportion of those who expect to decrease it, so the overall index for intentions, over both time frames, is positive. This contrasts with the subdued reporting of recruitment during the first quarter of 2012, suggesting that a proportion of the jobs created during that period may have been outside the Region. This is consistent with journey to work data which, as at the 2006 Census, showed that more than a quarter of the regional working population travel outside the Region to work (approximately 22% to Sydney). This is likely to have been one of the considerations relevant to giving the Region priority in the roll-out of the NBN, something that could transform many lives.

The unemployment rate for the Central 15% Coast in March 2012 was 6.9% 11.3% which 9.9% 8.9% 10% compares with the State average of 4.9%. 5.7% 4.2% 4.7% Over the past 31.5%years the unemployment 5% 1.0% 0.4% 0.1% rate has been trending down reflecting the 0% downward trend in participation and slight -5% upward trend in employment. -7.1% -10% -10.2%

-10.4%

-15% Residential building approvals -15.0% -14.7% -20%

Full-time

Part-time

-16.2%

The rate of10new stock SEP 08 of MARcreation 09 SEP 09 MAR SEP 10housing MAR 11 SEP 11 MAR 12 has been falling for most of the time since 2003. In the December 2011 Quarter the annual change in residential building Central Coast businesses’ employment intentions approvals+1=most was optimistic; down -1=most 42.3% compared with pessimistic 0.15 state average of -25.4%. the

SOURCE: CCRF Household surveys

0.10 0.05 0.00 LAST 3 MONTHS NEXT 3 MONTHS NEXT12 MONTHS

-0.05

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CENTRAL COAST BUSINESS REVIEW

June 2012


current (nominal) value, December quarter 2011 2 bedroom flat: $280 3 bedroom house: $352

20% 15%

15%

n

Residential sales prices

Price growth started slowing during 2004 and first became negative in December 2004. Since then, except for the period December 2009 to September 2010, price growth has continued to be negative and remains so for the past Quarter.

8% 6% 4% 2% 0% -2% -4%

-6%

Business not performing?

The indexes for Central Coast businesses’ ‘profitability and Centralmonths’ Coast Research Foundation trading over The the three prior to each half yearly survey, have shown trend decline over the last 10 years. The same indexes for the Hunter Region have generally been more buoyant and are still in positive territory, with businesses, on balance, experiencing good profitability and trading. However, the overall trend for the decade to March 2012 has been similarly downward. This reflects the booms and even bigger busts of the last 10 years after the dizzy heights of the housing boom, and recently, the GFC and the subdued recovery in its aftermath. Increased global competition, more constrained and expensive credit, costs associated with managing environmental issues, a relatively weak labour market and the related underlying social issues, have all played their part in this result.

2%

business news

0% -2%

3 bedroom HOUSES

-4%

2 bedroom FLATS

-6% -8% DEC 08

Central Coast Economic Indicators DEC 09

DEC 10

DEC 11

SOURCE: NSW Department of Housing; Australian Bureau of Statistics, Annual Catalogue changeNo.in6401.0. average rents – Central Coast NOTE: 'Central Coast' calculated as the weighted average of median rents in Gosford and Real Value b Wyong. Weights determined by total no. of bonds in each LGA.

8% 6%

Consumer confidence and spending – Central Coast

Confidence: +1=most optimistic; -1=most pessimistic Spending: +1=increase; -1=decrease

March 2012 – residents’ expectations for the Central Coast economyBusiness over the next: profitability and trading 3 bedroom HOUSES

3 months: 12%;Coast Same 61%; Worse 20% good ProportionBetter of Central businesses reporting 2 bedroom FLATS profitabilityBetter and trading over the pastWorse 3 months 12 months: 33%; Same 35%; 25% residents indicated33%) that, DEC 10 2011: DEC 11 on (March

Profitability and trading – Central Coast

0.4

-1 = very poor; 0 = satisfactory; +1 = very good

0.3 0.2

0.40

0.1

balance,Trading: they expected34% the regional(March economy to worsen 2011: 48%)during 0.0 SOURCE: NSW Department of Housing;The Australian Bureau the next three months. index forof Statistics, the next 12 months was -0.1 Catalogue No. 6401.0. slightly more positive, stillaverage only one–third of residents The for Central Coast businesses’ ‘profitability and NOTE: 'Central Coast'indexes calculated as thebut weighted of median rents in Gosford and -0.2 improvement. Inherent optimism underlies thissurvey, b expected Wyong. Weights determined total no.months’ of bonds in each LGA. trading over thebythree prior to each half yearly -0.3 medium-term indicator and ensures that it is almost always

PROFIT LAST 3 MONTHS

0.30

TRADING LAST 3 MONTHS

0.20 shown trend declinerepresent over the last 10 years.25% The same Central have Coast commuters around of-0.4 the workinh population Confidence - 3 MONTHS

slightly more positive thanHunter for the short-term outlook. The March indexes for the Region have generally been more Confidence - 12 MONTHS 2012 CCRF survey that theterritory, conservative outlook -0.5 0.10 buoyant andalso are revealed still in positive with businesses, on is likely balance, to be reflected in decreased spending. National and Spending - next 3 MONTHS experiencing good profitability and trading. However, -0.6 Consumer confidence and spending – Central Coast State fiscal likely to and provide little2012 counterMAR 10 MAR 11 MAR 12 the policy overallis trend for be thetight decade to March has beenMAR 09 0.00 Confidence: +1=most optimistic; -1=most pessimistic balancing stimulus, but it is expected that monetary policy may similarly downward. This reflects the booms and even bigger Spending: +1=increase; provide some further relief. busts of the last 10 years-1=decrease after the dizzy heights of the housing SOURCE: CCRF household surveys -0.10 boom, and recently, the GFC and the subdued recovery in its 0.4 MAR MAR MAR MAR MAR MAR MAR MAR MAR MAR MAR aftermath. Increased global competition, more constrained and 0.3 02 03 04 05 06 07 08 09 10 11 12 expensive credit, costs associated with managing environmental Business profitability and trading Profitability and trading – Central Coast 0.2 issues, a relatively weak labour market and the related SOURCE: CCRF business confidence surveys -1 = very poor; 0 = satisfactory; +1 = very good 0.1Proportion underlying social issues, have all played their part in this result. of Central Coast businesses reporting good 0.0profitability and trading over the past 3 months

continue with the latest survey. Similarly expectations for the regional economy are also pessimistic.

-0.1

-0.2Profitability:

26% (March 2011: 33%) The Central Coast Research Trading: 34% (MarchFoundation 2011: 48%)

-0.3 -0.4

Confidence - 3 MONTHS

The indexes for Central Coast businesses’ ‘profitability and Confidence - 12 MONTHS trading over the three months’ prior to each half yearly survey, Spending - next 3 MONTHS trend decline over the last 10 years. The same MAR 10 MAR 11 MAR 12 indexes for the Hunter Region have generally been more buoyant and are still in positive territory, with businesses, on SOURCE: CCRF household surveys balance, experiencing good profitability and trading. However, the overall trend for the decade to March 2012 has been similarly downward. This reflects the booms and even bigger busts of the last 10and years after the dizzy heights Profitability trading – Central Coast of the housing boom, -1 and recently, GFC and+1 the subdued = very poor; 0the = satisfactory; = very good recovery in its aftermath. Increased global competition, more constrained and expensive credit, costs associated with managing environmental issues, a relatively weak labour market and the related 0.40 underlying social issues, have PROFIT all played their part in this result. LAST 3 MONTHS

-0.5

-0.6have shown MAR 09

0.40 0.30

March Quarter 2012 PROFIT LAST 3 MONTHS

Page 5

TRADING LAST 3 MONTHS

0.20 0.10

Business profitability and trading

0.00

The indexes for Central Coast businesses’ profitability and trading have shown a trend decline over the last 10 years and

-0.10 MAR MAR MAR MAR MAR MAR MAR MAR MAR MAR MAR 02 03 04 05 06 07 08 09 10 11 12

0.30

SOURCE: CCRF business confidence surveys

TRADING LAST 3 MONTHS

The0.20 Central Coast Research Foundation

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4%

4% Confidence: +1=most optimistic; -1=most pessimistic AverageMarch annual change in rents providesfor a the more buoyant 2012 – residents’ expectations Central Coast Spending: +1=increase; -1=decrease perspective of theover regional housing market. Rather than buying 2% economy the next: houses and getting development approval for construction, 0.4 0% Central 3Coast residents are renting. Demand pushing months: Better 12%; Same 61%;isWorse 20%up 0.3 -2% average12 rentals for units and houses. Median weekly rent25% for a months: Better 33%; Same 35%; Worse 0.2 Central Coast Coast Economic three bedroom house in the Central ($352)Indicators is very similar 3 bedroom HOUSES -4% to the Hunter ($345) andCentral NSW ($350) median indicated rental for that, a 0.1 In March 2012 Coast but residents on 2 bedroom FLATS -6% two bedroom unitthey in the Region ($280) is far economy cheaper than in the during balance, expected the regional to worsen 0.0 State, dominated by Sydney, $400. There some the next three months.atThe index for isthe nextindication 12 months was -8% -0.1 DEC 08 DEC 09 DEC 10 DEC 11 slightly more but onlyDecember one–thirdquarter of residents of Annual moderating growth inpositive, regional rents in the change in average rents –still Central Coast -0.2 expected improvement. underlies this 2011 and future movements will beInherent influencedoptimism by the strength of Real Value SOURCE:-0.3 NSW Department of Housing; Australian Bureau of Statistics, medium-term and ensures that it is almost the labour market and indicator issues associated with affordability. There always Catalogue No. 6401.0. -0.4 Confidence - 3 MONTHS slightly more positive than for theinshort-term outlook. The March is anecdotal evidence of over-crowding some rental units and NOTE: 'Central Coast' calculated as the weighted average of median rents in Gosford and - 12LGA. MONTHS CCRFthat survey also revealed that the conservative b Wyong. Weights determined by total no.Confidence of bonds in each -0.5 houses, 2012 a problem could worsen if there is no recovery inoutlook likely to be in decreased spending. National and Spending - next 3 MONTHS housing is construction in reflected the Region. -0.6 State fiscal policy is likely to be tight and provide little counterMAR 09 MAR 10 MAR 11 MAR 12 balancing stimulus, but it is expected that monetary policy may provideconfidence some further relief. Consumer and spending SOURCE: CCRF household surveys Consumer confidence and spending – Central Coast

-8% In08 March 2012 DEC Central DEC 09 26%Coast Profitability:

Consumer confidence

According to CCRF Household Surveys consumer confidence continues to decline with consumers expecting the regional economy to worsen in the next 3 months. However, the index for the next 12 months was slightly more positive with a third of respondents expecting an improvement.

6%

March Quarter 2012 Page 5

0.10

0.00 -0.10 MAR MAR MAR MAR MAR MAR MAR MAR MAR MAR MAR 02 03 04 05 06 07 08 09 10 11 12 SOURCE: CCRF business confidence surveys

Specialist services include: The•Central Coast Research Foundation Turnaround Consulting

March Quarter 2012 Page 5

• Bankruptcy • Voluntary Administration • Liquidation • Receiverships LP212095

1

2 bedroom flat: $280 (Note: the chart opposite shows 3 bedroom house: $352 changes inand inflation adjusted prices) Consumer confidence spending

Annual change in residential building approvals

Real value 11 10% 009, new 5% 80% the CENTRAL COAST 0% the 60% change in NSW hest sual -5%in first time 40% ge a ere only ata.have-10% 20% ositive the annual COAST NSW ConsumptionCENTRAL - Average rents the post-15% GFC ring 0% mber 2010. In ch it Average rents – two bedroom flats and three bedroom houses, g stock in the -20% nary -20% MAR10 value, December MAR 11 quarter 2011 MAR 12 current (nominal) ce 2003. TheMAR 09 the the demand -40% and Traffic Authority, NSW SOURCE: Roads 2 bedroom flat: $280 (Note: the chart opposite shows erage annual 3 bedroom house: $352 changes in inflation adjusted prices) e years of 1.1 -60% DEC 08 DEC 09 DEC 10 DEC 11 State), factors d affordability Average annual change in rents provides a more buoyant Annual change in residential building approvals SOURCE: Australian Bureau of Statistics, Catalogue 8731.1, 6427.0 weak. perspective of the regional housing market.Nos Rather than buying valuedevelopment approval for construction, houses and Real getting Central Coast residents are renting. Demand is pushing up es prices average rentals for units and houses. Median weekly rent for a 80% three bedroom house in the Central Coast ($352) is very similar Annual change in average residential sales prices CENTRAL ent (nominal) to the Hunter ($345) and butCOAST median rental for a RealNSW Value ($350) 60% two bedroom unit in the Region ($280) is far cheaper than in the e in NSW State, dominated by Sydney, at $400. There is some indication e in 40% e shows of moderating growth in regional rents in the December quarter 20% only justed prices) 2011 and future movements will be influenced by the strength of 20% nual 15% the labour market and issues associated with affordability. There GFC the last 0% ten is anecdotal evidence of over-crowding in some rental units and .r In 10% ofthe sales prices houses, a problem that could worsen if there is no recovery in 5% g during-20% 2004 housing construction in the Region. The only quarters and 0% -40% wth since that nual -5% mber to Consumer confidence and spending 1.1 2009 -60% er 08 DEC 09 DEC 10 DEC 11 tors2011 priceDEC -10% CENTRAL COAST buyers stamp March 2012 – residents’ expectations for the Central Coast bility withdrawn, is -15% SOURCE: Australian Bureau Statistics, 8731.1, 6427.0 economy overofthe next: Catalogue Nos NSW remains low. -20% ked recovery. 3 months: Better 61%; SEP 08 SEP 09 12%; Same SEP 10 Worse 20% SEP 11 me s impact on 12 months: Better 33%; Same 35%; Worse 25% SOURCE: NSW Department of Housing; Australian Bureau of attractive and Annual changeCatalogue in average sales prices Statistics, No.residential 6401.0. In March 2012 Central Coast residents indicated that, on nal) Real Value balance, they expected the regional economy to worsen during the next three months. The index for the next 12 months was slightly more positive, but still only one–third of residents 20% The Central Coast Research underlies Foundation this expected improvement. Inherent optimism es) 15% medium-term indicator and ensures that it is almost always slightly more positive than for the short-term outlook. The March ten 10% 2012 CCRF survey also revealed that the conservative outlook ces is likely to be reflected in decreased spending. National and 5% 004 State fiscal policy is likely to be tight and provide little counterters 0% balancing stimulus, but it is expected that monetary policy may that provide some further relief. -5% 90 to rice -10% CENTRAL COAST amp n, is -15% Business profitability and NSW trading ow. -20% Proportion of Central Coast businesses reporting good ery. SEP 08 SEP 09 SEP 10 SEP 11 profitability and trading over the past 3 months on SOURCE: NSW Department of Housing; Australian Bureau of and Statistics, Catalogue No. 6401.0. Profitability: 26% (March 2011: 33%) Trading: 34% (March 2011: 48%)

8%

Average annual change in rents provides a more buoyant perspective of the regional housing market. Rather than buying houses and getting development approval for construction, Central Coast residents are renting. Demand is pushing up average rentals for units and houses. Median weekly rent for a three bedroom house in the Central Coast ($352) is very similar to the Hunter ($345) and NSW ($350) but median rental for a two bedroom unit in the Region ($280) is far cheaper than in the State, dominated by Sydney, at $400. There is some indication of moderating growth in regional rents in the December quarter 2011 and future movements will be influenced by the strength of Consumption - Average rents the labour market and issues associated with affordability. There is anecdotal evidence of over-crowding in some rental units and Averagehouses, rents – atwo bedroom and three ifbedroom problem thatflats could worsen there is houses, no recovery in current (nominal) value, December quarter 2011 housing construction in the Region.

10% cember 2009, mber of new 5% Coast and the 0% ed during the s the highest -5% concerning a our force data. -10% Central CoastCENTRAL Economic Indicators epresents the COAST NSW -15% ehicles during 04. As such it -20% discretionary MAR 09 MAR10 MAR 11 MAR 12 GFC, and the Annual change in new passenger vehicle registrations t market. SOURCE: Roads and Traffic Authority, NSW

20% provals

(Note: the chart opposite shows changes in inflation adjusted prices)

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CENTRAL COAST BUSINESS REVIEW

9


business N ews

Long Jetty businesses applaud revitalisation plan Wyong Council has received overwhelmingly supportive and positive feedback from Long Jetty businesses and local residents for their plan to improve the streetscape through the town. “At the meeting, we presented concepts and proposals associated with a streetscape improvement project that mainly focused on the introduction of colour,” Council’s Manager of Place Management Paul Bowditch said.

“It is Council’s intention to make the area more vibrant and alive with the ultimate goal of improving and expanding consumer activity in Long Jetty. “At this stage, we are proposing to improve the visual qualities of the street through the introduction of street banners, installation of planter The Entrance Road through Long Jetty boxes and public art elements. We are also proposing to paint some existing commercial businesses, with young, creative and buildings with selected colour schemes. enthusiastic owners, have come into the EXPERT ADVICE “All the ideas we discussed with local area. FOR EMPLOYERS businesses and property owners were well “Tourists, locals and day visitors to the supported,” he said. Coast, who would normally just drive Local business owner Anne Rowland through, are now stopping to spend Whether your said the proposed improvements were time browsing through the shops and to business is large exciting for Long Jetty. meet with friends in the local cafes,” Mrs or small, we can “All the business owners who attended help you manage Rowland said. the meeting walked away feeling really your workforce, “It is still early days but, with this protect your trade positive about the future of Long Jetty,” change in culture together with Council’s secrets and reduce Mrs Rowland said. “This initiative is very commitment to the area, the future for your workers comp much about Council working with busiLong Jetty is looking good.” premiums. ness owners to improve the area.” Council is now developing a detailed “Some of the ideas that were put forplan of the proposed works. This plan is Email Warwick Ryan ward were creative and practical and will soon to be presented and discussed with wpr@swaab.com.au go a long way to improving our village Long Jetty’s property and business ownSwaab Attorneys community,” she said. ers, with the intention of commencing Suite 3.10, Platinum Building, In recent months a number of new implementation in the very near future. AdamsSR_CCBR_3rdPgAd_art_8321:Layout 1 17/2/11 8:34 PM Page 1 4 Ilya Avenue, ERINA NSW 2250

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Tourism N ews

New pedestrian walk for The Entrance/Tuggerah Lake Wyong Shire Council has entered into a partnership with the Central Coast Regional Development Corporation to construct a scenic walk path at The Entrance to be called the Coast to Lake Scenic walk. Member for The Entrance Chris Spence said the NSW Government had allocated $800,000 to the project through the Central Coast Regional Development Corporation. “The Government recognises the great benefits that will flow from the development of this self-guided pedestrian walk around The Entrance Peninsula and is happy to partner with Wyong Council to make it happen,â€? Mr Spence said. Mayor Bob Graham said the aim of the project was to highlight the natural settings of the area. “We want to promote The Entrance peninsula as a key destination for tourists,â€? Mayor Graham said. The route that has been proposed covers a variety of terrains including a timber boardwalk, concrete paths and steps, grass, sand and rock platforms. The project incorporates the development of new and the upgrading of existing landmarks including new viewing platforms, lookouts, seating, exercise stations, pathways, signage and community art. The proposed route covers five main sections including: • Memorial Park to The Entrance Surf Club via the existing boardwalk • The Entrance Surf Club to Edith Ring Rest via the beach and Ocean Baths

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business news

Grammar’s green Science block A major $3 million upgrade of the Science facilities at Central Coast Grammar School has been completed, cementing the school’s reputation for premier facilities in the region. The project included an extension to the existing Science block with the addition of two laboratories and three general learning areas. The original five laboratories were refurbished bringing them up to the highest standard, matching the quality of the new building. Central Coast Grammar School Science block

The laboratories include features that are energy efficient and environmentally sustainable. All include wireless access, interactive smart boards and flexible seating that can be configured to suit the needs of students and teachers. Glass splashbacks around the work benches allow students to record their results as their experiments are progressing or can be used by the teacher to direct the focus of students. Enhanced preparation and staff rooms, a new lift, ramps and steps were also part of the project. In line with the school’s environmental credentials, the Science building development has been designed to achieve a Green 4-Star Education Design rating from the Green Building Council of Australia, representing ‘best practice’ in environmental design.

12

CENTRAL COAST BUSINESS REVIEW

The project which included both the extension and refurbishment work was carried out by Gosford based builder, North Construction.

Performing Arts Centre next on the agenda Headmaster Bill Low said, “The new Science facility is part of our 30-year master plan for the continuous development of inspirational learning spaces that motivate students and staff alike. In the past three years we have added a new library and lecture theatre, a multipurpose sports field and new ovals. The school is now proceeding to establish new facilities for the performing arts and intends to lodge a DA in the near future.”

June 2012


business news

University welcomes 6th Chancellor The University of Newcastle’s 6th Chancellor, Dr Kenneth Moss AM, began his term at the start of May. Dr Moss succeeds Professor Trevor Waring AM, who served in the position for eight years. Vice-Chancellor, Professor Caroline McMillen, said Dr Moss brought significant knowledge and expertise to this important role. “In a career spanning 35 years, Dr Moss has held leadership positions across the maritime services, mining and engineering sectors. His strong business acumen and his long connection with the University, ideally place him to fulfil the role of Chancellor.” A Newcastle alumnus, Dr Moss graduated with a Bachelor of Engineering degree (Hons) in 1968 and a Doctor of Philosophy in mechanical engineering in 1974. He was a foundation board member of Hunter Medical Research Institute and has been a member of University Council since 2010. Dr Moss’ professional background includes Managing Director of global maritime company, Howard Smith Ltd, National Vice President for the Australian Institute of Company Directors, Chairman of the Australian Maritime Safety Authority and a director for the National Australia Bank Ltd. Dr Moss is on the board for the Australian Brandenburg Orchestra and was previously the Chairman of Boral Ltd, Centennial Coal Ltd and GPT Group Ltd. Dr Moss said he was honoured to be appointed the significant role of Chancellor. “I am looking forward to working with my colleagues in the University and on

June 2012

• T hrough engagement with partners, the University will deliver world class innovation to support the development of strong regional communities. ‘Our lead priorities in education and research for 2013 – 2015 will be developed in the first of a rolling set of biennial strategic plans. These priorities will inform the nature of our future workforce, the layout of our campuses and facilities, and the investment required in our systems and processes to achieve the 2025 Vision

Dr Kenneth Moss AM

Council, and representing this great university in the community.” Professor McMillen extended a special thanks to the outgoing Chancellor, Professor Trevor Waring AM, acknowledging his leadership, commitment and passion for the University during a remarkable period of service in the role.

A New Direction Meanwhile Vice Chancellor, Prof. Caroline McMillen who took office in 000 will release the University’s 2025 Vision in the next few months. “This will define the vision of what we aspire to be by 2025, which will in turn shape our goals, priorities and lead strategies,” she says. “Currently, our draft 2025 Vision for the University is: • The University aspires to be a global leader in all of its spheres of achievement.

CENTRAL COAST BUSINESS REVIEW

13


business news

Brand Group leads the way with rooftop solar farms The Brand Group, through their property investment company, Mistlake Pty Ltd, has entered into a joint venture with Urban Group Energy to install solar farms on the roofs of their properties on the Central Coast. Property Manager for the Group, Tim Gunasinghe, said that as major property owners on the Central Coast they intend to lead the way in making their properties ‘green’. “Solar farms will be installed on Fountain Plaza, Erina Plaza, Park Plaza and Lisarow Plaza as a first step,” Mr Gunasinghe said. “The project represents an investment of $1.5 million across 5,000 sqm of rooftop with payback estimated to be over six years, after which it will be cash flow positive. “We will then introduce shading on the glass windows and retro-fitting greywater recycling to the properties.”

14

CENTRAL COAST BUSINESS REVIEW

Tim Gunasinghe with the first solar panels installed on the Fountain Corporate property.

June 2012


business news

Ultraserve expands with next generation cloud technology Erina based hosting and managed service provider, UltraServe, has announced that they have selected IBM technology to support their next generation cloud platform expansion to deliver a significant capacity increase to their Infrastructure as a Service (IaaS) platform providing their clients with cost effective Australian public and hybrid cloud solutions. Ultraserve’s UltraPOD solution, underpinned by IBM technology, will help enable the company to keep ahead of demand by allowing significant capacity to be added in a modular form, accelerating delivery to just weeks – a process that may have taken between six and eight months to deploy previously if traditionally integrated. “The first UltraPOD deployment, is a significant investment for us,” said Samuel Yeats, CEO, UltraServe. “Our customers and partners rely on us to transparently scale our pool of capacity behind the scenes. “In the past we had to perform long range capacity planning to stay ahead of demand, but now our internal time to increase our platform capacity is 80% faster than before, meaning we can continue our rapid growth and respond quickly as we support larger customer requirements. 180x100 ad:ORS 30/8/11 “We realised early last year that12:16 we PM

Peter Kensey and Samuel Yeats

had a window of opportunity to re-think the design of our underlying platform and develop a repeatable blueprint that enabled us to rapidly increase our capacity and efficiently expand into new geographic locations with agility.” “IBM is delighted that UltraServe has selected IBM as its partner for these capabilities leveraging our advanced server, networking and storage technologies," said Francois Vazille, General Manager, Systems and Technology Group, IBM Page 1 and New Zealand. "IBM soluAustralia

tions are created to help accelerate the journey to Smarter Computing and IBM has helped thousands of clients adopt cloud models through bringing together key cloud technologies, deep process knowledge, and a broad portfolio of cloud solutions." UltraServe currently operates between data centres in Sydney and Brisbane and has deployed the first of its UltraPOD modules in Sydney. UltraServe is seekContinued on page 27

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15


Business B riefs

Wiseberry opens in Gosford the way E-Bisprint is proactively providing local businesses with its full range of innovative, award winning e-commerce applications and printed products,” said Managing Director, Paul Freeman. Ms Gifford began her career as a Production Assistant and has progressed through a series of positions within E-Bisprint.

8 Hotels, Best Western, Golden Chain, Chifley Hotels, Country Comfort, Choice Hotels and Leisure Inns. To be unveiled in June, GraysOnline’s newly branded hotel booking site will allow the 1.1 million people who visit GraysOnline.com every month to purchase accommodation by making their best offer.

Chad Knight and Paul Kemp

Real estate agents Chad Knight and Paul Kemp have relocated their Wiseberry Coastal real estate business from Kincumber to the Gosford CBD. Located at 178 Mann Street, Gosford their office is in one of the most prominent locations in the CBD and has been a real estate office for some forty years. “We took the decision to move to Gosford as it allows us to service all surrounding areas,” said Mr Knight. They have operated at Kincumber for nine years and have been in real estate for eighteen years. Mr Knight and Mr Kemp are also Directors of Wiseberry Peninsula along with their co-Directors, Rod Dillon and Troy Howe.

E-Bisprint appoints regional Sales Executive Tuggerah based independent print manager E-Bisprint has announced the appointment of Keira Gifford as Sales Executive for the region. “The appointment highlights the confidence E-Bisprint has in the region and

Keira Gifford

Gary Berman

GraysOnline buys CC website Ubid4rooms.com

Peter Wilson resigns as GM from Gosford City Council

Australia’s largest online auction house, GraysOnline, has announced it will enter the accommodation market as a major player with a new offer-based hotel reservation website after buying the Ubid4rooms.com portal. Launched in 2008 by experienced hotelier, Gary Berman, who will manage GraysOnline’s new travel division, the award-winning Ubid4rooms.com site currently features 1200 hotels, motels, apartments, holiday parks and B&Bs in Australia and NZ, including major hotel groups such as Rydges, Toga, Oaks,

Following twenty-two years of service to the Gosford City community, Peter Wilson is leaving his position of General Manager at Gosford City Council. Serving the past seventeen years as Gosford City Council’s General Manager, Mr Wilson has led the Council through times of momentous change. Mayor of Gosford City, Councillor Laurie Maher has expressed his gratitude for the General Manager’s leadership over the past two decades. “With a career spanning thirty-six years in Local Government, including the

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June 2012


Business Briefs

last twenty-two years at Gosford Council, Peter’s vision and experience has heralded a number of significant achievements during his time as General Manager,” said Clr. Maher. “His dedication and determination have seen many major projects come to fruition to benefit the local community; notably the construction of Gosford City Stadium and the Peninsula Leisure Centre, completion of the Gosford City Sewerage Scheme, the rebuilding of Gosford City Surf Clubs, new libraries at Kariong and Wyoming, upgrades to our parks and playgrounds, development of the Peninsula Recreation Precinct, Peninsula Theatre, Gosford Regional Gallery and Edogawa Commemorative Gardens. “During his tenure as General Manager, Peter has guided the Central Coast through the worst drought in history including the development of major new infrastructure such as the MardiMangrove pipeline link. He has fostered a closer working relationship with Wyong Shire Council and maintained a team approach to all areas of responsibility. “He has been integral in the continued expansion of the Coastal Open Space System (COSS), the achievements of the Gosford Challenge, the development of Continued on page 27

Brian Hilton and Josh Hilton

Central Coast Renault returns to Brian Hilton The Central Coast Renault dealership has returned to the Brian Hilton Motor Group after many years in the wilderness. The Brian Hilton Motor Group has come a long way since Mr Hilton started his business in 1967 selling used cars with a $10,000 floor plan. At the time he had approached Renault to take over the franchise from the then dealer who was struggling to sell the vehicles and offered it to Mr Hilton. Initially however, the company refused to appoint him their dealer and it was only his persistence and them realising that their current dealer had no plans for the future of the brand on the Central Coast that he was appointed Renault and Peugeot Dealer in March 1968. Within a few years Hilton’s were the leading Renault and Peugeot dealer in NSW and continued representing the brand both on the Central Coast and Newcastle until 1995 when Renault withdrew from the Australian market following

a restructuring of the company worldwide. Renault returned to the Australian market in 2010 with modest ambitions but with a new model line-up and plans to compete strongly with other European brands. The appointment of Brian Hilton Motor Group is evident that the company is serious about the Australian market. Dealer Principal, Josh Hilton, said that they would start work soon on a new Renault showroom at the Wyoming headquarters.

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half year property market review feature

Coast residential market remains subdued

By Syd Triggs, Certified Practising Valuer, AAPI Valuation Director – Newcastle, Herron Todd White

Already, we are nearing the mid year mark of 2012. As a property valuation practice covering all areas of the Central Coast Region, we see first hand what’s happening out there and are pleased to provide our thoughts on the year to date to the Central Coast Business Review’s many readers. First though, a very quick overview of 2011 now that it’s over and the statistics are in. In terms of properties sold and median sale prices, the following table provides an insightful snapshot of our two Local Government Areas (LGA’s), Gosford and Wyong. Properties Sold 2011

% Change over 2010 sales

Median Sale Price

% Change over 2010

Gosford LGA

2,647

+1.6%

$404,000

-2%

Wyong LGA

2,772

+10.8%

$325,000

-0.9%

Sales were up by 10.8% in Wyong LGA and 1.6% in Gosford LGA over the previous year, with a lower median sale price in both LGA’s over the same reporting period. What do these figures mean? Well opinions will vary, but from our point of view we draw a direct link from these statistics and reports given to us by our leaders in the retail sector. We can believe these people when they tell us that buyer confidence is down but not missing entirely. There remains willingness to purchase but with a tempered level of confidence. In property terms, sale volumes are up, but median sale prices are down. This suggests to us that those with a willingness to purchase property are targeting the lower or the perceived safer end of the market. Call it having a go, but hedging your bets. Let’s not forget though, some of this activity can be attributed to an increase in first buyers getting in before changes to the First Homebuyers Scheme came into effect at the beginning of 2012. Although subject to formal confirmation, we classify the first homebuyer market as that below the $350,000 mark and by our calculations, this accounted for around 40% of sales in the Wyong LGA and 31% in Gosford LGA. Although not quite finished, the first part of 2012 has given us the following information: Vacant land sales Gosford LGA Wyong LGA Residential Dwelling Sales Gosford LGA Wyong LGA Residential Unit Sales Gosford LGA Wyong LGA Dwelling Sales $2m to $3m Gosford LGA Wyong LGA Dwelling Sales $1m to $2m Gosford LGA Wyong LGA

18

2012 Sales to Date 33 54

Median Values $283,000 $197,000

810 890

$375,000 $317,750

321 182

$291,000 $262,750

1 1

$2.55m $2.0m

24 3

CENTRAL COAST BUSINESS REVIEW

$1.21m $1.53

Dwelling Sales $500K to $1m Gosford LGA Wyong LGA Dwelling Sales $200K to $500K Gosford LGA Wyong LGA

2012 Sales to Date 188 77

Median Values $605K $575K

433 650

$365,000 $330,000

Source: RP Data

We consider these statistics tell us that there is nothing extraordinary happening in the market so far for 2012. At this time, our opinions have been sought for the remainder of 2012. We see the next six months being much like the last, an upward trend in sale rates at the lower end of the market range and hesitancy continuing across most other segments. Beyond 2012 is another story though. There has been considerable debate on several opportunities for major investment in the region. Unlike many other regions, which would welcome the opportunity to have major investment arrive in their region, we have a record of shunning it. The main two proposals at the moment involve “The Landing” in Gosford and the “Warnervale Precinct” in Wyong Shire. Each have the potential to shape the economic future of the region and it will be interesting to see whether these join the list of opportunities lost. Lastly, for those keeping an eye where values are at present, the following is a snapshot of values for the year to date. Suburb

Type

Low

High

Median

Avoca Beach

House

$355,000

$1.3m

$604,250

Budgewoi

House

$190,000

$505,000

$235,000

Erina

House

$342,000

$714,000

$467,500

Ettalong Beach

Villa/Unit

$185,500

$495,000

$316,250

Gosford

Unit

$190,000

$525,000

$263,500

Green Point

House

$284,000

$760,000

$432,500

Jilliby

Lifestyle

$665,000

$805,000

$717,000

Kanwal

House

$230,000

$575,000

$362,500

Killarney Vale

House

$225,000

$495,000

$315,000

Killcare Heights

House

$520,000

$1.07m

$600,000

Kincumber

House

$285,000

$505,000

$305,000

Lisarow

House

$290,000

$534,000

$441,000

Ourimbah

House

$260,000

$568,000

$343,000

Matcham

Lifestyle

$750,000

$950,000

$950,000

Terrigal

House

$340,000

$950,000

$500,00

Terrigal

Unit

$340,000

$1.5m

$459,250

The Entrance

Unit

$212,500

$670,000

$320,000

Umina Beach

House

$260,000

$690,000

$353,500

Wamberal

House

$393,000

$755,00

$485,500

Woongarrah

House

$345,000

$515,000

$413,000

June 2012


By Ty Blanch – Director, LJH Commercial Central Coast

As we have moved through the past three-year period there has certainly been changes in the levels of enquiry coming into the marketplace for all types and price levels of commercial property on the Coast. Notably, over the past six months we have measured further reductions in enquiry from signage, print media and internet advertisements. Despite the falling enquiry rates, the ‘quality’ of the participants in the market has increased. In March 2012 LJH Commercial organised a large group of properties to go to Auction as the “Fall of the Hammer” Campaign for Autumn. Out of twelve properties, we sold five before auction and two shortly thereafter! Whilst the depth of the market has become shallower with lower levels of confidence in business markets, and considering RBA cash rate cuts (which flow on to affect Net Yields), the sale of commercial properties has maintained some kind of continuity plateau – rather than dropping into a valley. This ‘quality’ of buyers and prospective buyers could also be defined as the ‘willingness and readiness to commit to selected commercial property offerings within a specific time frame (say 4 weeks)’. In the current climate, the Central Coast is benefiting from still being the ‘cheapest and best value commercial property marketplace between Wollongong and Hexham’. Investors and SMSF’s are actively seeking higher yields from quality stock properties with good capital growth prospects and at substantially lower capital values than can easily be found in Sydney & Newcastle. Combine the recent RBA cash rate cuts and what has been passed on to commercial portfolios by the lenders, and the local 10-11% net yields are staying strong in the minds of investors. Owner occupiers from both Sydney, Newcastle and suburbs around the region are also making decisive strategic purchases with a notable accent on transport, logistic and new warehouse operations.

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L SO

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When considering an agent to sell your property and achieve the best possible result call CCPP. Right down to the very last detail we are there for you. Call Us “You’ll Appreciate the Difference”

June 2012

Experienced and knowledgeable investors and owner occupiers seem to have an unshakeable ‘faith’ in the inherent characteristics that comprise the Coast Commercial, Industrial and Retail sectors. These factors include the location between Sydney and Newcastle, the local pool of labour, improvements to infrastructure (e.g. the National Broadband Network), and the dominant natural resources (National Parks, Beaches & Waterways) that make the Central Coast what it is. It is the group of people that ‘know and love’ the Central Coast that continue to populate the Sales Advices as properties read value levels that fit with their expectations. This is also, I believe, a big part of the reason why Central Coast commercial property owners protect themselves and one another from massive drops in prices. Properties are not being ‘sacrificed’ or just let go without a strong weighting against other investment options and a thoughtful decision making critique of what might happen in the not-too-distant future. Leasing markets Leasing markets have still been active although at lower levels than in 2010-2011. Here again, where price determines value – they will still consider the Central Coast as a serious alternative for their business address. The key is to provide the ‘red carpet’ so that from identifying the Central Coast as a possible location for operations through to actual point of transaction, local councils, regional development groups, commercial agents and other businesses need to work closely together to make the prospect feel wanted and ‘loved’. Surprisingly for many people, the number of businesses on the Central Coast that are doing well despite the international and local gloomy outlook is relatively high. As interest rates and building costs come down (which they are), land prices may stabilise to see a return in time to a developers market.

Established in Gosford for over 40 years, R&H Gosford is family owned & operated by Sue & Geoff Tilden, with their fully qualified sales people offering over 120 years of combined local knowledge and sales experience. We are specialists in commercial & industrial project management, corporate personnel relocation, and our office is the largest single rental agency on the Central Coast. Our reputation is your guarantee.

150 Mann Street, Gosford Ph: 4324 7744 or Geoff Tilden on 0415 238 846

4384 2277

CENTRAL COAST BUSINESS REVIEW

19

half year property market review feature

Quality buyers in the commercial marketplace


FOR

P RO P E RT Y

• Excellent Exposure • $15,000 pa Gross per shop • Incentives Contact: Rob Willcox - 0419 691 135 or Email: rob@chapmanfrazer.com.au

commercial and industrial property for sale/lease

Central Coast

AUCTION 29 June 2012, 4pm @ LJH Commercial Central Coast

CHAPMAN & FRAZER

COMMERCIAL SPECIALISTS

4325 0208

CBD OFFICE BLOCK

$1.3M EXCL GST

83 Mann Street, Gosford 2250 www.chapmanfrazer.com.au < Reversed

ENOUGH IS ENOUGH! WE ARE READY TO SELL!

The Vendors are ready to go & want this property SOLD!! Approx 131m2 of floor area, 5 rooms/consulting areas & under cover off street parking. Approx 600m from Gosford Hospital & rail and bus interchange. All fair and reasonable offers before the auction considered.

AUCTION - DIRTY DEEDS, DONE DIRT CHEAP!

Normally you would have to kill someone to get a location like this!! Massive showroom and retail potential only 30 seconds from the F3 Sydney - Newcastle Freeway. Main road exposure and 2 titles - so you can buy one lot or buy both. Choice of 2 premium lots 4567m2 & 6960m2 (easy amalgamation to 11,527m2 approx). Get some dirt worth fighting for dirt cheap!

Kanwal Office For Lease

Office would suit small business, medical practice, Real Estate etc. opposite Wyong Hospital, Prime location.

Call Eric on 0407 0907 852

FOR SALE GOSFORD Corner location, approx 473m² divided into 3 air cond. & carpeted suites. 10 lock up car spaces on the lower level + 10 on an upper deck. Future expansion subject to Council consent. Strata potential. Ideal for Professionals to occupy all or part of the building.

SACRIFICED PRICE – DECEASED ESTATE $525,000 EXCL GST

AUCTION - PRISTINE OFFICE - KINCUMBER

Fully fitted out commercial position ideal for professional business services, medical and professional suites. 102m2 ground floor area with a beautiful reception area, separate offices and an open work area, making it very easy for your business to move straight in. 48m2 (approx) mezzanine area is also well catered for with additional offices, open work area, storage and kitchenette. Motivated vendor say SELL!!!

HIGH EXPOSURE - TUGGERAH BUSINESS PARK

PROFESSIONAL MEDICAL SUITES

Superb modern office and warehouse unit with cafe in complex and a HIGH exposure corner position. Glass features and offices finished to a high level. This unit 235m2 including a 50m2 office. FOR LEASE

Bargain – reduced by $200,000. Modern first floor office in Gosford CBD with ample natural light. 336m2 partitioned into 7 offices plus large open plan area, boardroom, reception & compactus – only 4 lots on the Strata. Parking for 6 cars.

WYONG - PRICE REDUCED BY $50,000 !!!

WYOMING WORKSHOP

335m2 (approx) including retail showroom, partitioned office areas, amenities & lunchroom. Zoned Business 3a, full glass shopfront, carpeted, reverse cycle & ducted air conditioning throughout. SALE $500,000 + GST

SALE OR LEASE

Three Strata Titled suites offered in one line Excellent exposure Fully air-conditioned On site for parking for up to 14 vehicles Central to public and private hospitals EXPRESSIONS OF INTEREST INVITED ALL GENUINE OFFERS CONSIDERED CONTACT TONY MYERS 0418 433 377 Landmark Building 184 Mann Street GOSFORD

4322 5600

FORCED SALE - 1180m2 FREEHOLD BUILDING

956m2 approximately factory plus 110m2 of office showroom, 90m2 mezzanine and large covered awning plus 300m2 hardstand . 4(b) light industrial zoning. AUCTION 29 June 2012, 4pm @ LJH Commercial Central Coast

Near Brian Hilton reception, workshop with 5 roller shutters approx 170m2 + 150m2 office & showroom + yard. $425,000 excl GST.

YARRAMALONG - CELLARS, RESTAURANT, RESIDENCE

FREEHOLD FACTORY

Value investment, Building 1: Yarramalong Cellar business downstairs, residence upstairs. Building 2: The Manor accommodation & restaurant. 6 rooms for accommodation & 2 bedroom residence, 8 bathrooms + 2 car garage, 3 licences. SALE $899,000 + GST if applicable

REDUCED! QUALITY PROPERTY - QUIET POSITION WEST GOSFORD Only 30 seconds from Manns Rd & minutes from F3 Freeway or Gosford town centre. There’s 222m2 to use & level access with a roller door to the front & a well presented entry way foyer. SALE $310,000 + GST

STAND OUT COMMERCIAL OPPORTUNITY - KILLARNEY VALE

INVESTMENT

Substantial commercial investment with multiple tenants providing generous income streams and mitigating the risk of relying on one tenancy. Having a good mix of retail and commercial tenancies shows the flexibility of the development to attract future incomes. Fully leased investment with a current net income of approx $130,000, this investment could be the perfect fit for your portfolio. FOR SALE $1.3M NO GST VISIT OUR WEBSITE FOR ADDITIONAL PROPERTIES and MORE INFORMATION – www.ljhooker.com.au All prices shown GST incl. unless otherwise indicated

LJH COMMERCIAL – CENTRAL COAST

21/1 Reliance Dr, Tuggerah • Ph: 4353 7700

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CENTRAL COAST BUSINESS REVIEW

Now leasing

$375,000 EXCL GST

Very modern concrete panel building, approx 254m2 with concrete front yard and perimeter security fencing. Vacant Possession.

PRIME INDUSTRIAL INVESTMENT $2,050,000 GST N/A

Main road location with future development/ expansion potential. A heavy duty factory with cranes on a 2 acre site leased to an ASX listed mining company. Returning $160,000pa net.

WEST GOSFORD INDUSTRIAL UNIT $450,000 GST N/A

Modern brick premises with shopfront façade and reception office just off Manns Road. Approx 320m² + 65m² mezzanine + large metal awning at rear (6 car capacity).

WILLIAM ST MALL SHOP

FOR LEASE

Great location & exposure; approx 35m²; air cond; $20,000 pa gross + GST.

SHOWGROUND RD WAREHOUSE

FOR LEASE

• Sites from 50m2 to 225m2 • Attractive rates • Gross leases Join Woolworths, Aldi, Best & Less, The Reject Shop and specialty stores. Exciting changes are in store at the Central Coast’s very first shopping centre.

Very modern concrete panel building approx 229m2 with internal office; great exposure; concrete yard at front with security fencing. Prices shown with * are inclusive of GST

CHAPMAN & FRAZER COMMERCIAL SPECIALISTS

83 Mann Street Gosford 2250 • Ph: 4325 0208 www.chapmanfrazer.com.au

Phone Deborah Warwick on 4324 4299 June 2012


P ROPERT Y

Brand buys shops at The Entrance Council approves Wamberal commercial development

35 Coral Street, The Entrance

Erina property developer and investor, Philip Brand has bought 11 strata retail shops at 35 Coral Street, The Entrance paying $1,090,000 for the lot, making up all of the ground floor retail in the development. The shops, of around 600sqm each, were bought in one line from the liquidator after failing to sell at auction late last year.

June 2012

“The Entrance has enormous potential,” said Mr Brand who also owns the restaurant that is leased to The Red Centre Steak House in The Oaks Hotel. Mr Brand said the shops are in a prime position in The Entrance and would be let mostly for food outlets. “So far we have six food operators committed,” he said.

Gosford Council has approved the construction of a multi-level mixed retail and commercial building and car park at 4–6 Ghersi Avenue, Wamberal comprising a total of 4,010 sqm with a frontage of 47.2 metres and on which presently stands a liquor store which is to be demolished. The development by Mistlake Pty Ltd will comprise: • 2 basement car parking levels providing 114 car spaces plus a delivery/loading dock • 1,925 sqm of retail tenancies • Level 1 and 2 commercial tenancies with a total 1,900 sqm

CENTRAL COAST BUSINESS REVIEW

21


P RO P E RT Y

Iconic marina sold West Gosford industrial showroom sold

An owner buyer has bought Unit 3, 236238 Manns Road, West Gosford paying $250,000 (GST not applicable). The 129 sqm unit is part of a brick complex built about 30 years ago. Geoff Broadhurst from Chapman & Frazer Real Estate negotiated the sale. Machan’s Marina at 5-7 Bilba Avenue, Booker Bay

Machan’s Marina at 5-7 Bilba Avenue, Booker Bay, the largest, oldest and best known marina on Brisbane Water, has sold by Expressions of Interest for $4,050,000 to a Central Coast businessman. The property which was marketed by Stuart Gan of PRDnationwide Ettalong Beach, underwent a complete refit and refurbishment of facilities late last year including brand new state of the art finger wharf and all new marina facilities.

The business was sold as a going concern, walk in walk out and the new owner will continue to operate the business as it has been run in the past. The property comprises 2 titles totalling 1,242 sqm plus a wet lease area of 3,667 sqm with the Marina operating under “existing use right”. The complex comprises a full range of facilities and services including: 32 berths and 9 moorings, refuelling facilities, fully equipped workshop for shipwright and mechanical repairs, Volvo Penta dealership, triple tandem slipway to dry dock up to 56’ vessels, 12 car on-site parking, reception area and separate office for brokerage, 4 bedroom manager’s residence with swimming pool. The business was founded and operated by the Machan family for over thirty-five years.

X OX

DEMOLITION WE CLEAR THE WAY

DEMOLITION & ASBESTOS SPECIALIST COMMERCIAL . INDUSTRIAL . RESIDENTIAL

02 4388-2204 www.oxdemo.com.au

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CENTRAL COAST BUSINESS REVIEW

Rare small freehold at West Gosford sold A rare small freehold industrial property at 341 Manns Road, West Gosford has sold to a local investor for $612,000 (GST not applicable). The property comprises a 514 sqm older brick factory building on a 1,062 sqm block. Craig McMullen from Citicoast Realty negotiated the sale.

Sydney investor buys at West Gosford on 9.1% return A Sydney investor has paid $350,000 (GST not applicable) for Unit 1, 7 Comserv Close, West Gosford. The property which is part of a larger tilt concrete panel construction complex built about 2004, comprises 211 sqm on ground level and a 62 sqm mezzanine and amenities. The property was sold on a 3 + 3 year lease back to a quality tenant showing a 9.1% net return to the buyer. Craig McMullen from Citicoast Realty negotiated the sale.

Investor buys Somersby industrial unit

An investor has paid $210,000 (GST not applicable) for Unit 4, a 243 sqm industrial unit at 111 Wisemans Ferry Road, Somersby. The unit is part of a 10 unit complex built about 16 years ago. Geoff Broadhurst from Chapman & Frazer Real Estate negotiated the sale.

June 2012


P ROPERT Y

Leasings Leasings at Karalta Court Erina

Green Point restaurant leased

Lisarow warehouse leased Westend Classics Pty Ltd has leased Unit 5, a 275 sqm warehouse at 161 Railway Crescent, Lisarow. Terms of lease are 1 year with 2 year option at a rental of $26,000 per annum including Outgoings plus GST. Geoff Broadhurst from Chapman & Frazer Real Estate negotiated the lease.

Berkeley Vale industrial unit leased Recent leasings at Karalta Court, the recently completed commercial building on the corner of Karalta Road and Karalta Lane, Erina are proof that quality commercial space will command top dollar. Agents RCI Group report that they have leased Shop 2 (105 sqm), to a Financial Planning/Accounting firm for $466 per sqm. Lease terms are 5 years with 2 x 5 year options and 1st right of refusal to purchase at a rental of $49,000 per annum plus Outgoings and GST. RCI have also leased Suite 11, a 16 sqm Serviced Office in the same building to a psychologist on the basis of $625 per sqm. Lease terms are 1 year with 1 year option at a rental of $10,000 per annum including Outgoings plus GST.

A local chef has leased the ground level cafe/restaurant in the Aldi Complex at Green Point. The 55 sqm premises were leased for 4 years with 4 year option at a rental of $16,5000 per annum including outgoings plus GST and includes additional outdoor seating. The tenant has purchased the plant and equipment for $5,000 inclusive of GST. Richard Ellis from Raine & Horne Commercial negotiated the lease.

North Gosford factory leased

June 2012

Advertise your property here For further information—Phone: 4367 0733 or email info@ccbusinessreview.com.au

Erina leasing for Indian restaurant

Maresh Kumar, formally the chef at Radhani Indian Restaurant, has leased an area on Level 1, 172-176 The Entrance Road, Erina (Palm Court) and will establish the Kings of Punjab Indian Restaurant. Lease terms for the 288 sqm restaurant including fittings and equipment are 3 years with 3 year option at $65,000 per annum including outgoings plus GST. Richard Ellis from Raine & Horne Commercial negotiated the lease.

Warehousing and logistics company, Go Logistics, has leased a 140 sqm industrial unit at 11 Craftsman Avenue, Berkeley Vale. Lease terms for the unit are 1 year with 1 year option at rental of $15,296.76 per annum including outgoings and GST. Chris Watson and Ty Blanch from LJH Commercial Central Coast negotiated the lease.

MRG Operations Pty Ltd has leased a freehold factory at 21 Wollong Street, North Gosford. The property comprises 220 sqm factory building on a 445 sqm lot with hardstand and security fencing. Terms of the lease are 1 year with 2 year option at a rental of $18,000 including outgoings plus GST. Geoff Broadhurst from Chapman & Frazer Real Estate negotiated the lease.

West Gosford industrial unit leased B.A. Lewis & Sons Pty Ltd has leased Unit 1 of 155 sqm at 330 Manns Road, West Gosford. Lease terms are 1 year with 2 year option at a rental of $18,700 including Outgoings plus GST. Geoff Broadhurst from Chapman & Frazer Real Estate negotiated the lease.

CENTRAL COAST BUSINESS REVIEW

23


comment

Driving the Coast into a better economic future By Dave Abraham, Chairman of Regional Development Australia Central Coast and a local employer.

Like most reading this article I think the Central Coast is a stunning place to drive around. Coming down the Woy Woy road from Kariong offers better views than descending from the mountains into Seattle, better than looking over Hollywood and as good as Rio and Athens. The vista too of the lakes as I drive over The Entrance bridge makes me feel a certain pride for the area, as fishermen, families and diners parade the idyllic foreshores and beaches. All seems well with our world. Like most readers too, I suspect they know that our social and economic situations are less than ideal and in many ways not very beautiful at all. This has been the case for 15 years or more. While we should be thankful for our relative economic strength in the world sense we should look at tackling some of these structural issues. Commuting rates remain very high, pointing to lack of well paid jobs in the region. Low participation in the employment market also points to a limited supply of good jobs. It is reasonable to acknowledge that most local businesses work on the sharp edge of profitability, something that keeps our employment ambitions low. We should also acknowledge that the negative, 'no change movement' has sent many businesses and their families to the wall. Despite this we are an eternally optimistic bunch, our business confidence

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CENTRAL COAST BUSINESS REVIEW

statistics always point to our optimistic view despite the reality of our own challenging local economy. I feel that we all know deep down the 'potential' of the Central Coast to go ahead in a great way. Gosford CBD for example has so much potential it's painful to think about at times. Thousands of locals could be employed or studying in our great regional city delivered by profitable businesses, university and organisations. This in turn would bring the region's social and cultural economies alive. Imagine the boon for local mums, dads, kids and grandparents to have such a situation. I feel such a special opportunity is now before our feet. The roadblocks of the past are now opening up and some recent wins are giving the region some momentum. Most would have read of the formation of the joint regional water authority and pipeline investments, securing our water supplies. Recent wins in health centre and hospital investments are going some way to securing better health care here. The formation of The Central Coast Mariners club and facilities is national best practice. And a project close to my heart, the NBN investment, will vastly grow and improve business and employment in our region. Allowing our commuters to return and businesses to flourish. The great thing about all these initiatives mentioned above is that they were all co-operatively driven. Better still, all levels of government responded

positively, even enthusiastically, working together to make things happen. That is good news! Now all we need is to keep our regional momentum going. Support the change that is happening from Gosford to Warnervale, from The Entrance, to Terrigal and into every home and business in this emerging region. I suspect many of us won't stop driving around the Coast admiring the vistas BUT let's also keep driving the The Coast into a better economic future by keeping the positive momentum moving.

June 2012


business tips

Health & Safety RT ADVICE Representatives MPLOYERS

ur arge can nage rce, trade reduce s comp

By Warwick Ryan, Partner, SWAAB Attorneys

wick Ryan In Brief nt@swaab.com.au Following on from our earlier article

regarding eys - Suites 2/3 the new Work Health and Safety Act 2011 (NSW) (‘WHS Act’), this nce Road, ERINA article addresses the introduction of the Health & Safety Representative (‘HSR’) and how this impacts employers.

HSR Roles & Functions Employers have an express duty to consult workers on WHS issues. HSRs represent workers on WHS issues, reflecting their views and concerns. HSRs have the power to: • Monitor actions taken by the employer regarding WHS matters; • Investigate complaints from workers regarding WHS matters; and • Investigate potential risks concerning the WHS of represented workers. Upon completing regulator-approved training, HSRs can also: • Direct the cessation of unsafe work practices (provided there are reasonable concerns); and • Issue ‘Provisional Improvement Notices’ requiring WHS concerns to be addressed.

Insurance - Understanding Your Options

By Nathan Corrigan

In previous months we have identified and explained the two risk classes that face your business. Asset based risks (buildings, plant/machinery, vehicles, etc) and Liability based risks (public, products, errors/omissions, etc). It is now time to consider what action is required to deal with the risk. You can do one of or a combination of the following: Ignore: You choose to accept the risk and run the chance that it won’t happen to you. The advantage with this option is that it allows you to reduce your costs and free up administrative time. The disadvantage is that if an event occurs it will more than likely seriously impact upon your business. Reduce: This is when you choose to put measures in place that either reduces the exposure or likelihood of the event. Practical examples would be increasing security on the premises or restricting public access to workshop areas, etc. The

advantage of reducing the risk is that it allows you more direct input in to the management of the risk. The disadvantage is that it may have a direct impact upon the productivity of the business. Remove: You outsource the risk or remove your involvement from that area. An example of this would be the outsourcing of security to an external company or refraining from providing what could be perceived as professional advice. The advantage with choosing this option is that you are engaging specialist services to mitigate that risk on your behalf. The disadvantage is that it will generally come at a high cost either directly or indirectly through profitability. Transfer: You may engage the services of a financial or insurance institution to accept the risk on your behalf. The advantage of choosing to transfer the risk is that you will have the peace of mind that you are dealing with a company that engages specialists in asset remediation and relevant liability laws. The disadvantage is that there is an ongoing direct cost, coverage may require certain compliance on your behalf or the coverage could be restrictive. Contact Nathan Corrigan of APEX Insurance Brokers to assist you in identifying your risks and implement strategies in mitigating these risks on 1300 85 APEX (2739) or visit www.apexinsurance.tv/faqs

Do all workplaces require a HSR? No. A workplace will only need to appoint HSRs if members of a workgroup request representation by a HSR. Once requested, employers are obliged to facilitate the election of HSRs. Workgroups will generally consist of workers sharing similar WHS conditions and concerns.

Who can be a HSR? Any worker who is a member of a work group is eligible to be elected as a HSR (unless they are disqualified by a court/ tribunal for improper use of power or information).

Steps involved when electing a HSR 1. Formation of work groups – the number and composition of workgroups must

Complete IT solutions tailored to your business Design and implementation of new networks Auditing of and recommendations for existing networks Access for satellite office’s via VPN and RAS Backup solutions (was your last backup successful?) Proactive and preventive maintenance Client access portal Disaster recovery strategy Service Level Agreements Remote access support Wireless hotspots Hardware & Software Sales 24 Hour service number available 7 Day service

Phone 4384 3555

www.platinumitsolutions.com.au

Continued on page 27 June 2012

CENTRAL COAST BUSINESS REVIEW

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business tips

A Streamlined National Business Names System By David Prior, Partner, Priority Business Lawyers

You might not be aware but from 28 May this year the registration and use of Business Names will be governed federally. Under the Business Names Registration Act, 2011 from that date if you want to register a Business Name anywhere in Australia you will need to do so by completing a form on the Australian Securities and Investment Commission (ASIC) Website.

Why the new system? Up until now if a Business wanted to conduct its operations in more than one State it had to register a Business Name in each particular jurisdiction. This inconvenience has now been removed so that you only have to register in one jurisdiction. In addition, the new system will prevent identical or almost identical Business Names from being registered. It will operate Australia wide and will be regulated by ASIC.

What happens with the current State based systems? Under the transition arrangements, if you currently have a Business Name registered in a particular State or Territory you do not need to register it again with ASIC but that organisation will transfer all current Business Names across to the national register. If you have a Business Name registered in more than one State or Territory then each registration will be transferred and you can then decide whether to retain all of the registrations or keep just one. If the transfer of Business Names is identical or almost so, then ASIC proposes to identify each by way of State or Territory in order to remove confusion if possible.

What happens after the new regime starts? You need to apply through ASIC by filling out their online Application and provide information that includes the following:

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CENTRAL COAST BUSINESS REVIEW

1. The ABN of the proposed Business Name holder (in that regard you should be aware that unless you have an ABN, ASIC will not register a name). 2. The proposed Business Name. 3. Your option as to the registration period, either one or 3 years. 4. The name of the Business Name holder, relevant details and the address for service of documents and principal place of business which must be in Australia. It will still be necessary to check the register to ensure that the Business Name you want is available. The good news is that if the Business Name you want is not available and you still apply, you will not need to pay the registration fee.

What are your new obligations? The Rules are reasonably straightforward and, in summary, are as follows: 1. You are unable to carry on a business unless the Business Name is registered. 2. You must supply an ABN and the Business Name on all of your business documents including Tax Invoices and Receipts, and any documents lodged with ASIC. 3. As is the case now, you must currently display the Business Name at every place the Business operates. 4. A person must not carry on a Business under a Business Name if they are disqualified, for example, from managing a Corporation under the Corporations Act. It would appear that the Government is endeavouring to create the new system to have a more complete record of who is conducting business in Australia and to further restrict those persons who have been disqualified from managing Corporations from engaging in business.

Act you do not acquire any Intellectual Property rights. The purpose of registering the Business Name under the legislation is to enable you to carry on business in effect under a licence from the Commonwealth. It will at least give you the added protection in that no one else is able to register the Business Name anywhere in the Country. In order to obtain any Intellectual Property rights you would need to register a Trade Mark which could enable you to significantly add value to your business and protect your valuable Intellectual Property from infringers, together with any additional benefits of licensing, selling and otherwise dealing with that Mark. At Priority Business Lawyers we are regularly retained by clients for the purpose of registering and transferring Business names and providing legal services associated with the registration and transfer of Trade Marks.

The Coast’s No. 1 way to talk to business Let us help you create a successful advertising campaign for your business. Phone: 4367 0733 or email info@ccbusinessreview.com.au

Can I transfer my Business Name? Yes. There is a process available in which you are able to transfer your name. However, the process differs to some extent in that there is a cancellation process where you need to choose an option in respect of transferring of the name. There are time limits that apply in respect of transferring a Business Name from one business owner to another.

Does the registration of the Business Name give you any Intellectual Property rights in that name? As is presently the case, by simply registering the Business Name under the June 2012


continued articles

Ultraserve expands with next generation cloud technology Continued from page 15 ing anchor tenants in the enterprise and government sectors for its planned Melbourne (August 2012) and Canberra data centres. Coinciding with the above announcement UltraServe has also announced the appointment of its new National Sales Manager, Peter Kensey. Mr Kensey brings with him twenty years ICT industry experience and knows the local and international markets intimately having worked in key business development roles with organisations such as Hostworks, Fujistu, Kaz, Hitachi Data Systems, EMC and Telstra. Samuel Yeats, CEO, Ultra Serve said “We took our time to find the right sales leader who could support our fast growing business and help expand our footprint across Australia. “Our commitment to our customers has seen the business continue to grow

over 40% year on year, so it was extremely important we found the right person to continue this momentum. Peter is technology savvy, particularly in the areas of cloud, storage and managed services, and his ability to work with both direct and indirect models is a great fit with our business.” Mr Kensey said it was the right time to take on the role with UltraServe. “UltraServe’s fast growth is aligned with an increasing demand for cloud services and offers a host of new sales opportunities. There is nothing more exciting than working with a new company that has both considerable potential and proven results,” he said. In 2011, UltraServe was ranked No.34 in The Deloitte Technology Fast 50 Programme which ranks 50 of Australia’s fastest growing public and private technology companies, based on percentage revenue growth over three years (2009 to 2011).

Uni to benefit from NBN global access

New pedestrian walk for The Entrance/Tuggerah Lake

National Sales Manager appointed

Continued from page 7 tion resources, including subscriptions to over 80,000 online and print journals, 20,000 e-books and also acquires over 20,000 print books per annum. This, combined with 24x7 physical access over three locations ensures that the library is always available to assist and support research activity. “With the NBN, further opportunities to access these resources and many more will be generated, allowing students to access vital research information not just those resources at the library but from facilities around the world, at a time that suits them. The economies of scale make this aspect of the NBN even more attractive. Higher Education facilities such as the University of Newcastle and the rollout of the NBN will ensure future generations are at the forefront of the knowledge economy, building a better future for our Region and generations that follow.”

Continued from page 11 • E dith Ring Rest to Toowoon Bay Surf club via the rock platform and beach • Toowoon Bay Surf Club to Tuggerah Lake Foreshore via a concrete footpath; and • Tuggerah Lake Foreshore to Memorial Park via a concrete pathway. Work to be carried out at Edith Ring Rest involves beautification and landscaping, replacing the existing fence around the lookout, restoration of the existing chair and the rectification of the fence leading up to the Rest. Other projects carried out as part of the Coast to Lake walk include: the installation of an outdoor gym circuit at Picnic Point; installation of picnic shelters, seating and signage along the route; refurbishment of amenities blocks at Picnic Point and The Entrance SLSC; installation of a filtered water station at Toowoon Bay Beach and public art. Work on the walk is already underway and is expected to be completed by October, 2012.

Peter Wilson resigns as GM from Gosford City Council Continued from page 17 the new planning scheme (Gosford LEP) and the establishment of a Central Coast Water Corporation. “On behalf of the Councillors and staff at Gosford City Council and the June 2012

residents of Gosford City, I would like to sincerely thank Peter Wilson for all that he has worked to achieve on behalf of our community,” added Clr. Maher.

Minister opens Innovation Summit Continued from page 4 Another key message, which was echoed throughout the presentations, was the fact that the NBN is the enabler. Central Coast businesses large and small will generate the innovation and opportunities for the local as well as the global community. With a variety of businesses operating on the Central Coast, the NBN provides an opportunity to connect with each other and the wider community to share our ideas and services. The 2012 Innovation Summit encouraged business owners and managers to embrace the change the NBN will bring and realise its financial benefits, but more than that, the opportunities it presents as a creative collaboration channel, education tool and overall creating a “knowledge economy” for the Central Coast.

Health & Safety Representatives Continued from page 25 be determined. This must be negotiated with workers. 2. Nominations – once workgroups and the number of HSR positions are finalised, employers must notify all employees that nominations have opened and of the closing date. 3. Elections – If the number of nominations equals the number of positions vacant all nominees are elected by default. Otherwise an election will be held. Employers must notify all workers of the outcome as soon as practicable.

Can employers appoint a HSR? No. Because it is intended that HSRs act in a representative capacity, only workers may elect and appoint HSRs. Note that HSRs do not replace safety managers and are not personally liable for any action/ failure to act done in good faith.

What should employers do? We strongly recommend that employers seek proper advice to ensure that existing procedures and structures meet the new consultation obligations. A failure to do so may lead to non-compliance and owners, directors and senior management may all be subject to severe penalties under the new Act.

CENTRAL COAST BUSINESS REVIEW

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EV E N TS C AL EN DAR

Central Coast business events calendar Event holder

Description

Date

Information

Central Coast Business Enterprise Centre Keeping Small Business Safe - Sole Trader

Wed 6th June - 10.00am-12.00pm www.ccbec.org.au

Central Coast Business Enterprise Centre Keeping Small Business Safe - Using Subcontractors

Wed 6th June - 6.00pm-8.00pm

Central Coast Business Enterprise Centre How to Recover Debts - Part A

Tues 12th June - 6.00pm-9.00pm www.ccbec.org.au

Central Coast Business Review Warwick Ryan Seminar

www.ccbec.org.au

Protecting your business from (ex) staff and competitors Wed 13th June - 7.00am-9.00am www.ccbusinessreview.com.au

Central Coast Business Enterprise Centre Keeping Small Business Safe - Employing Staff

Tues 19th June - 10.00am12.00pm

Central Coast Business Enterprise Centre Keeping Small Business Safe - Sole Trader

Tues 19th June - 6.00pm-8.00pm www.ccbec.org.au

Central Coast Business Enterprise Centre

Wed 20th June - 10.00am-4.00pm www.ccbec.org.au

Top Small Business Marketing Strategies

www.ccbec.org.au

Central Coast Business Enterprise Centre How to Recover Debts - Part B

Wed 27th June - 6.00pm-9.00pm www.ccbec.org.au

Central Coast Business Review

Insolvency Demystified

Wed 18th July - 7.00am-9.00am www.ccbusinessreview.com.au

Adams Business Events

Central Coast Business Excellence Awards 2012

Sat 18th August

Central Coast Business Review Warwick Ryan Seminar Central Coast Business Review Warwick Ryan Seminar

Employment Agreements and awards under the Fair Work Act - Can one navigate this impenetrable terrain? Central Coast Economic Update Breakfast - Featuring Dr Chris Caton, Chief Economist, BT Financial Group Preventing bullying in the workplace - Do we really have to teach our staff to be 'nice'?

BNI Team

Members Meeting

Every Tuesday 7.00am

East Gosford Chamber of Commerce

Members Meeting

Second Monday of the month

The Entrance Chamber of Commerce

Members Meeting

First Wednesday of the month

Erina Chamber of Commerce

Members Meeting

Third Wednesday of the month

Gosford Chamber of Commerce

Members Meeting

Second Wednesday of the month www.gosfordchamber.com.au

Northern Lakes Regional Business Chamber

Members Meeting

Second Tuesday of the month

www.northernlakes.net.au

Peninsula Chamber of Commerce

Members Meeting

Second Monday of the month

www.peninsulachamber.asn.au

Wyong Chamber of Commerce

Members Meeting

Fourth Tuesday every second month (except Dec/Jan)

www.wyongchamber.com.au

Central Coast Research Foundation

Central Coast Business Review

Advertisers’ Index

Central Coast Business Review is a Registered Trade Mark of Adams Business Publications Pty Ltd P.O. Box 3259, Erina, NSW 2250 Phone: (02) 4367 0733 Fax: (02) 4367 0744 Email: info@ccbusinessreview.com.au Typesetting by Graphic by Design • Phone: (02) 4365 6777 Printed by Print National, Lisarow • Phone: (02) 4328 5644

Accent Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Adams Smash Repairs . . . . . . . . . . . . . . . . . . . . . . . 10 Apex Insurance Brokers . . . . . . . . . . . . . . . . . . . . . . . . 6 Argyle Estates Business Brokers . . . . . . . . . . . . . . . . 17 Austbrokers Central Coast . . . . . . . . . . . . . . . . . . . . . 11 Bloomtools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Bodyfuel Cafe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Cara O Cruz Tapas Restaurant & Bar . . . . . . . . . . . . 29 Caroline Bay Brasserie & Functions . . . . . . . . . . . . . 29 Central Coast Community College . . . . . . . . . . . . . . 16 Central Coast Motor Group . . . . . . . . . . . . . . . . . . . . 1 Central Coast Prestige Properties . . . . . . . . . . . . . . . 19 Chapman & Frazer . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Commercialhq . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Creightons Funeral Service . . . . . . . . . . . . . . . . . . . . 12 Crust Gourmet Pizza Bar . . . . . . . . . . . . . . . . . . . . . . 29 Display Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

© Adams Business Publications 1994. All rights reserved. Reproductions in any part prohibited. While every effort has been made to ensure all information in this magazine is accurate, no responsibility will be accepted by the publisher, Adams Business Publications. The producer accepts no responsibility for illustrations or photographs supplied by organisations or individuals and/or typographical errors.

28

CENTRAL COAST BUSINESS REVIEW

www.ccbea.com.au

Wed 12th Sept - 7.00am-9.00am www.ccbusinessreview.com.au Thurs 23rd October - 7.00am9.00am

ccrf@hvrf.com.au

Wed 28th Nov - 7.00am-9.00am www.ccbusinessreview.com.au

DMA Insurance Brokers . . . . . . . . . . . . . . . . . . . . . . . . 9 Expression Printing . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Footprint Group, The . . . . . . . . . . . . . . . . . . . . . . . . . 13 Green Design Indoor Plant Hire . . . . . . . . . . . . . . . . . 8 Harris & Adams Smash Repairs . . . . . . . . . . . . . . . . 16 Harwood Chartered Accountants . . . . . . . . . . . . . . . 3 Hunter Trucklifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Imperial Shopping Centre . . . . . . . . . . . . . . . . . . . . . 20 James Estate Wines . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Karinyas Restaurant Wine Bar . . . . . . . . . . . . . . . . . 29 Lawler Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 LJH Commercial Central Coast . . . . . . . . . . . . . . . . . 20 OI Organise Internet . . . . . . . . . . . . . . . . . . . . . . . . . 24 Oliver Meyers Real Estate . . . . . . . . . . . . . . . . . . . . . 20 Ors Group, The . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Ox Demolition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 PKP & Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

www.bniteam.com.au www.eastgosfordchamber. com.au www.theentrancechamber. com.au info@erinachamber.com.au

Platinum IT Solutions . . . . . . . . . . . . . . . . . . . . . . . . 25 Print National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Priority Business Lawyers . . . . . . . . . . . . . . . . . . . . . 13 Quay West Magenta Shores . . . . . . . . . . . . . . . . . . . 29 Raine & Horne Gosford . . . . . . . . . . . . . . . . . . . . . . . 19 Reef Restaurant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Redeye Constructions . . . . . . . . . . . . . . . . . . . . . . . . . 7 Scape Constuctions . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Shaw Gidley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Sign-A-Rama Tuggerah . . . . . . . . . . . . . . . . . . . . . . 23 SWAAB Attorneys . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Telstra Business Centre Central Coast . . . . . . . . . . . 14 VCDental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Yeramba Estates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

June 2012


Cheer on the Mighty Blues!

Modern cuisine with healthy options, all cooking done on-site Catering for vegetarian & gluten free Specialising in corporate catering di MANFREDI coffee. Shop 1/9 Williams Court, Gosford – 4323 6669 Shop 2/12 Kurrawyba Ave, Terrigal – 4385 3627

www.mercurekooindahwaters.com.au

Shop 7/1 Pioneer Ave, Tuggerah – 4351 0834

www.bodyfuel.com.au

Brasserie Open 7 days

Tapas Restaurant & Bar Call: 4385 3100

Multi-Award Winning Function Centre & Caterer Phone 02 4324 8099

Email: info@caraocruz.com.au

www.caraocruz.com.au 3-5 Kurrawyba Ave Terrigal Beach

Gosford Regional Gallery & Japanese Gardens 36 Webb Street, East Gosford www.carolinebayfunctions.com.au

Caroline Bay Brasserie Ad.indd 1

24/5/07 10:48:32 AM

4385 3222 www.reefrestaurant.com.au The Haven Terrigal NSW 2260

CCBR recommends these restaurants June 2012

CENTRAL COAST BUSINESS REVIEW

29


F U N NY BU SI N ESS A woman walked into the kitchen to find her husband stalking around with a fly swatter. “What are you doing?” she asked. “Hunting flies,” he responded. “Oh! Killing any?” she asked. “Yep, 3 males, 2 females,” he replied. Intrigued, she asked. “How can you tell?” He responded, “3 were on a beer can, 2 were on the phone.” All of these pilot and aviation jokes get me to thinking about my first skydiving instructor. During class he would always take the time to answer any of our stupid first-timer questions. One guy asked, “If our chute doesn’t open, and the reserve doesn’t open, how long do we have until we hit the ground?” Our jump master looked at him and in perfect deadpan and answered, “The rest of your life.” Three Englishmen were in a bar and spotted an Irishman and decided they would try and wind him up. So, one of the Englishmen walked over to the Irishman, tapped him on the shoulder, and said, “Hey, I hear your St. Patrick was a drunken loser.” “Oh really, hmm, didn’t know that,” replied the Irishman. Puzzled, the Englishman walked back to his friends. “I told him St. Patrick was a loser and he didn’t care.” The second Englishman remarked, “You just don’t know how to set him off. Watch and learn.” So, he walked

over to the Irishman, tapped him on the shoulder and said, “Hey, I hear your St. Patrick was lying, cheating, idiotic, lowlife scum!” Unperturbed the Irishman replied, “Oh really, hmm, didn’t know that.” Shocked beyond belief, the Englishman went back to his friends. “You’re right. He’s unshakable!” The third Englishman remarked, “Boys, I’ll really tick him off... just watch.” So he walked over to the Irishman, tapped him on the shoulder and said, “I hear St. Patrick was an Englishman!” The Irishman looked at him with a bleary eye and replied,”Yeah, that’s what your mates were trying to tell me.”

As a senior citizen was driving down the freeway, his car phone rang. Answering, he heard his wife’s voice urgently warning him, “Harry, I just heard on the news that there’s a car going the wrong way on the F3. Please be careful!” “ That’s strange” said Harry, “It’s not just one car. It’s hundreds of them!”

Quote of the month “The way to get started is to quit talking and begin doing.” Walt Disney

Coast 2 0 11 -12 i n vestm

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Keep up-to-date with local business news and issues, subscribe today for just $82.50 a year or take it for two years for only $132 (includes the annual Yearbook). You’ll also receive the Central Coast Annual Investment Prospectus incorporating The Adams Ultimate Guide to Business – the quintessential guide for success on the Coast, plus a weekly business e-newsletter absolutely free plus invitations to exclusive cocktail evenings and business events. Complete this form and either email to info@ccbusinessreview.com.au, fax to 4367 0744 or mail it to P O Box 3259, Erina NSW 2250. YES, I WOULD LIKE TO SUBSCRIBE FOR 1 YEAR

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CENTRAL COAST BUSINESS REVIEW

PHONE

EMAIL June 2012


Tuesday Dinner?

James Estate Pinot Gris

84690

Pale in colour with a slight hint of bronze. Lifted honeysuckle, dew melon and pear nose. Light to medium bodied with highlighted fruit character leading to a soft and pleasant finish.

www.jamesestatewines.com.au


before

r te f a

Can’t imagine your new office? Let Accent create the picture Complete refurbishment, including design and project management - Accent meshes style, form and function together in your office, with its’ modular partitioning. We consider both the overall office space and individual/personal space, to create a harmonious working environment that allows teamwork synergies, increasing productivity. Partitioning systems create a vibrant and aesthetically pleasing ambience. Demountable systems may be used for full height office walls providing cost savings and allowing the ongoing flexibility of reconfiguring your space to suit operational changes. United Group Rail offices by Accent Group

For our latest brochure phone 1800 044 044 www.theaccentgroup.com.au

Unique Interior Solutions

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