DEC 2013 JAN 2014
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BEST CARS IN AUSTRALIA MEMBERS CLASSIC: 1932 FORD ROADSTER
OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND
AUTOMOTIVE APPRENTICESHIP MENTORING PROGRAM. The Apprenticeship Mentoring Program seeks to improve Australian apprenticeship retention rates through targeted mentoring and assistance to all 1st year automotive apprentices.
For many individuals, starting an apprenticeship is the first time they have been in industry and this can mean they need additional guidance and support to help them through. Mentoring support aims to improve the apprenticeship experience for both apprentices and employers in a more sustainable way. An apprentice mentor can be a great companion through the early stages of an apprenticeship. To contact your nearest mentor and find out what they have to offer, visit maapmyfuture.com.au or call the MAAP My Future national hot line on 1300 587 756.
www.facebook.com/MaapMyFuture
MAAP My Future is an Australian automotive industry initiative proudly support by:
This National Automotive Industry Mentor/Adviser Project is funded by the Australian Government Department of Industry, Innovation, Science, Research and Tertiary Education through the Australian Apprenticeships Mentoring Package. The views expressed in this document are those of Auto Skills Australia and do not necessarily reflect the views of the Australian Government or state and territory governments.
Contents Official Publication of the Motor Trades Association of Queensland
Follow us on Facebook www.facebook.com/MTAQueensland
HEAD OFFICE Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Michelle Chadburn POLICY Kellie Dewar, General Manager MTA Queensland
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ADVERTISING ENQUIRIES Emily Metelmann 07 3237 8784 Facsimile: 07 3844 4488 Email: emilys@mtaq.com.au
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EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry. The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.
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MTA QUEENSLAND ABN: 74 028 933 848 CORPORATE PARTNERS
02 From the editor 04 Policy/Viewpoint 06 News
22 Industrial relations
SUBARU ON THE ROAD TO DRIVING RECOMMENDATION
07 Divisional news 08 MTA Q&A NOEL BAINES: AGRICULTURAL REQUIREMENTS
Feature 10 HOLDEN: THE LION'S LAST ROAR
20130125
14 Australia's best cars MAZDA HITS IT FOR 6 16 Members Classic THE GREEN MACHINE:
1932 FORD ROADSTER
MEMBERS ESSENTIALS
19 Gala Ball special 23 Training matters 26 Member profiles 29 Investment matters
MARKET WRAP
30 Travel
MOUNTAIN VENUE A PERFECT MEETING SPOT
32 Industry insight
HOW SUCCESSFUL BUSINESS OWNERS MANAGE MONEY December 2013/January 2014 Motor Trader | 1
From the editor
SIGNING OFF
JONATHAN NASH
IT IS WITH a heavy heart that I write this, my last Editorial for MT. I have thoroughly enjoyed working with the whole team at MTA Queensland, and would like to take this opportunity to thank Kellie Dewar, Paul Kulpa, Steve Ghost and all the staff for making the redesign of MT such an enjoyable experience. Over the past eight months I hope I have succeeded in giving you an informative and entertaining publication that has embraced our members’ interests and put the spotlight on some of our members’ many businesses and pleasures with the introduction of MTAQ&A and Members’ Classics. My new role is working with the 2018 Gold Coast Commonwealth Games and in keeping with that theme I am passing the MT baton on to Jonathan Nash, an old colleague and friend of mine from the News Limited days. I have complete confidence that under Jonathan’s editorship MT will continue to be a publication that all members can be proud of. I would also like to thank all of you, the MTAQ board, members and regular MT readers for your input and feedback this year. I hope you and your families have a wonderful and safe festive season.
EDITOR
Regards, Bill Key
2 | Motor Trader December 2013/January 2014
Hello and welcome to the December/ January edition of Motor Trader. It is with great pleasure I take on the role of Editor of Motor Trader magazine. As always, we will endeavour to entertain you and bring you news and insight into the automobile industry, the most up-to-date information regarding training opportunities and, of course, continue to highlight members’ interests with the MTAQ&A and Members Classics features. In this month’s edition, MT looks at the demise of Holden as an automotive manufacturer. The loss is likely to hit the industry, and the country, hard and we review the events leading up to General Motors decision and take a look at Holden's past. At the end of November, MTAQ held its annual President’s Ball at the Sofitel Hotel in Brisbane. A chance for members to meet and celebrate the year, the Ball was also an opportunity to laud the achievements of MTA Institute of Technology (MIT) students and honour the Apprentice of the Year - an award presented this year to Albert Doyle-Smith. MIT WILL BE closed for the holidays from close of business on Friday 20 December 2013 and will be reopening on Thursday 2 January 2014. We wish everyone a safe and happy holiday and look forward to working with you in the New Year!
In our Members Classic section we talk to Mark Wells, owner of a stunning 1932 Ford Roadster hot rod. With time, patience and a bucketful of know-how Mark created the awesome green machine you can see on page 16. We also check out the machines named Australia’s Best Cars – an accolade hard won and which this year saw the new Mazda 6 Touring win the judges choice award. In training matters, MIT played host to a delegation from the Paraguayan Ministry of Education and Culture last month. Looking to develop Technical and Vocational Education and Training (TVET) in Paraguay, the delegates were delightful guests and were impressed with the facilities and professionalism of MIT which they hope can be a model for similar facilities at home. Also visiting from overseas were two Australia Pacific Technical College (APTC) trainers from Fiji, here on a professional development visit to gain an insight into Australia’s level of quality and commitment to training. Our MTQ&A this month is with Noel Gaines, owner of successful Gatton-based Agricultural Requirements, a company providing agricultural machinery, products and services to Queensland’s Lockyer Valley region and beyond. I hope you enjoy this edition of Motor Trader, and if you have a story you think is worth telling, want to appear in Member Profiles or have a classic car, motorbike or truck you would like to see featured, then please don’t hesitate to contact me. Jonathan Nash jonathann@mtaq.com.au
IN THE STORY on RACQ’s annual network conference, which appeared in the last edition of Motor Trader magazine (p21), MT stated that Century Batteries was among the conference exhibitors. This is incorrect and we apologise for the error – Ed
Automotive Air Conditioning Technology
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Heavy Commercial Vehicle Mechanical Technology
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Management Courses Motorcycle Mechanical Technology
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ON THE JOB TRAINING IN YOUR WORKSHOP In most cases, Qld Government funding meets the cost of training
Call us on 1800 884 137 or visit www.mtait.com.au to register your apprentice
Policy/Viewpoint
KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND
W
HERE HAS THE year gone? The months have flown by and now this is the final “Viewpoint” for 2013. To all Members, seasons greetings from each of us at MTA Queensland Headquarters.
STANDALONE LEGISLATION
2013 is ending on a positive policy note. Members of our Motor Dealer Council (formerly AADA Queensland) have been on a long and patient journey to attain standalone legislation for their sector. At last, that policy objective is on the doorstep of being achieved. But actual rejoicing will have to wait a little longer. The Motor Dealers and Chattel Auctioneers Bill (MD&CA Bill) and the Agents Financial Administration Bill (AFA Bill) was introduced on the evening of 20th November into the Queensland Parliament. These were referred to the Legal Affairs and Community Safety Committee which will report on 24 February, 2014. As part of the process, we will be making a submission and will attend the hearings. The Bills will be debated and enacted early in 2014. Then, the Property Agents and Motor Dealers Act 2000 (PAMDA), under which the motor dealers and others industry sector are regulated, will be repealed. The MD&CA Bill “provides for the regulation of the activities, licensing 4 | Motor Trader December 2013/January 2014
and conduct of motor dealers and chattel auctioneers and their employees to protect consumers against particular undesirable practices”. The AFA Bill provides “for the administration of trust accounts held by agents regulated under an Agents act, to establish a claim fund to compensate persons in particular circumstances for financial loss arising from dealings with agents”. In our submission on the Draft MD&CA Bill, we stressed red tape reduction as a priority, pointing to some of the prescriptive, costly and time consuming elements in the Property Agents and Motor Dealer Act 2000. One that we are pleased has been addressed in the current Bill is the simplification of statutory warranty requirements. This will result in a single class of vehicle up to 10 years old that has travelled fewer than 160,000 kilometres. This removes short term warranty requirements for older, typically low value vehicles, making legitimate sales of these more viable. In addition, the number of approved forms required for used motor vehicle transactions, for both Motor Dealers and Chattel Auctioneers also will be reduced. Whilst the objective of standalone legislation is in our grasp, we will continue to work towards further reforms.
PREMIERS BUSINESS ADVISORY FORUM
On 8 November, David Fraser, as Chairman of the State’s peak motor industry body - the MTA Queensland attended the Premiers Business Forum. Whilst its focus was red tape reduction, it provided the opportunity to address other issues relevant to the motor trades. Referring to red tape reduction initiatives, the MTA Queensland proposed changes that we have been pursuing for some time, such as changes to the written-off vehicles similar to the New South Wales Government’s written-off vehicle laws, and deregulation of safety inspection fees. The Assistant Minister for Finance, Administration Deb Frecklinton responded to our proposals. The door is open to continue our discussions,
particularly with the Department of Transport and Main Roads.
SUNCORP LKQ MERGER
I am currently planning a meeting of Divisional Chairs to discuss the announcement made by Suncorp that it had formed a joint venture with international automotive parts company LKQ to establish an Australian parts supply business. While we are still light on the details of the merger, we will be meeting to discuss the potential impacts of the joint venture and developing strategies to address these impacts on members throughout the industry.
COLES AND WOOLWORTHS CAPITULATE
The discount petrol shopper docket dragon is constrained - after 12 years of advocacy. The supermarket oligopolists provided the ACCC with undertakings that discounts will be capped at 4 cpl for the next 5 years. Any discounts offered will be funded from the party’s fuel retailing operations. For MTA Queensland, Tim Kane, his SS&CSAQ Committee and Kellie Dewar (now MTA Queensland General Manager) it is sweet success. In 2001 Tim’s Committee identified and articulated to the ACCC that petrol discounting diminished competition in the fuel retailing market putting small independent service stations in economic peril. From 2003 onwards the supermarket giants escalated their shopper-docket programs - so did MTA Queensland its advocacy. There were submissions and letters to the ACCC and evidence before Senate Committees. The central thesis was that the duopolies cross subsidisation of fuel from their grocery operations were a competitiondistorting strategy. Tim Kane said, “Eventually, strong policy, tenacity and endurance triumphed.” AMIF, as the national body was assertive. It liaised with the ACCC and networked key stakeholders. We will continue to work on outstanding issues.
SALES OF NEW MOTOR VEHICLES
Sales of new motor vehicles remain in the doldrums both at the State and national level. The Australian Bureau of Statistics for October indicated that new vehicle sales in Queensland continued to deteriorate on a seasonally adjusted basis - down 1.5 per cent on the previous month to 18,788 new units. On a yearly basis, the statistics indicate that the downward trend continues with new car sales showing a negative 7.4 per cent. Nationally, the trend is similar with declines in both the monthly and yearly new vehicle sales. The Federal Chamber of Automotive Industries which compiles the respected VFACTS said that its data indicated that private sales had increased 4.4 per cent compared to the same month last year. On the other hand, business sales fell 10.5 per cent and government sales declined 7.8 per cent. This October data lead the FCAI to conclude that confusion remained in the market following the previous government’s Fringe Benefits Tax (FBT) proposal. As I have reported in previous Viewpoints the damaging changes to the car FBT put in place by the former Rudd Government are gone. In the words of the incoming Coalition Government the arrangements are “dead, buried and cremated.”
THE ECONOMY
Economic data is mixed. The national Australian Chamber of Commerce and Industry’s (ACCI) September quarter Small Business Survey indicated that most indices of small business trading conditions were continuing to deteriorate. These remained below the “50 mark which separates expansion from contraction.” There was a positive result - and that is “there was marked improvement in small business expectations following the change of government.” The Survey revealed that Business Taxes and Government Charges was the top barrier to investment for small business which correlated with Chairman David Fraser’s input at the Premier’s Business Forum. This was the eleventh successive quarter as the leading concern. Federal, State and Local Government regulatory
impediments was in the top ten constraints on small business. The state Westpac Group CCIQ Pulse Survey of Business Conditions showed that the Queensland economy was moving into positive territory and had reached a 19 month high. The Survey indicated the Business Confidence Index for the Queensland economy rose by 12.9 points to 63.3, the highest level since the March 2012 election. Encouragingly, 58 per cent of businesses think economic conditions in Queensland will continue to improve over the next 12 months.
and Chairman of the Automotive Engineers Division Charlie Serchen and other stakeholders met with the Department of Transport and Main Roads Officers on the review of the consolidation of Section 133 of the Transport Operations (Road use Management) Act 1995 and Section 161 of the Traffic Regulation 1962. The Department accepted the concerns and agreed to make the improvements to the draft regulation. Our vehicle repair industry Members are pleased that at long last, and after many endeavours, their views have been heard and the matters addressed.
VOLUNTARY CODE OF CONDUCT - MOTOR VEHICLE WORKSHOP OPERATION
REMINDER - PERSONAL PROPERTY SECURITY REGISTER (PPSR)
The Queensland Government in March 2013 abolished the environmental licensing requirements (Environmentally Relevant Activity 21 (ERA 21)) for motor vehicle workshops. This means that operators would no longer be required to fill an application form, apply for a license, pay an annual fee of up to $1545.50 or submit annual returns for their activities. Businesses must recognise, however, they are still required to meet minimum environmental standards under the Environmental Protection Act. By way of submissions and other interactions we’ve played a major part in removal of the burdensome ERA 21. The next step is to develop a voluntary code of conduct to replace ERA 21. The Department of Environment and Heritage Protection has tasked the MTA Queensland with the role of leading the development of this voluntary code of conduct. The code will provide the guidance that businesses can follow to protect themselves from prosecution for environmental offences. The MTA Queensland will release a draft copy of the code for Member comment before the end of the year.
REPAIR INDUSTRY
A long running regulatory saga that frustrated the patience of the vehicle repair industry has been resolved. It refers to the onerous requirements for vehicle repairers to keep records. Divisional Executive Ben Chesterfield
Members are reminded that a secured party with a transitional security interest that is unregistered should take action to register it before 31st January 2014. The PPS registry has advised that “if a security interest is not ‘perfected’ it may lose its priority status (so that another person with a security interest in the same property may be paid out first). Commercial arrangements that may be transitional security interests include: leases/hiring agreements; retention of title supplies and commercial consignments. More information can be found online at www.ppsr.gov.au
FUEL PRICE BOARDS
MTA Queensland's advocacy on behalf of our Service Station and Convenience Store Association Members on the issue of fuel price boards has borne fruit. Federal and State Consumer Affairs Ministers have agreed to create a ’National Information Standard’ to ensure that fuel price boards display the actual retail fuel price and not the discounted retail fuel price. We have long advocated that fuel price boards that display only the discounted fuel price to the motoring public are confusing and misleading. Motorists without the “discount petrol shopper dockets” cannot avail themselves of the discounted retail fuel price. Small and independent fuel outlets without the market power to provide ‘shopper docket’ December 2013/January 2014 Motor Trader | 5
Policy/Viewpoint petrol discounts lose trade and made uncompetitive. A “National Information Standard” for fuel price boards will provide an even market for all fuel operators allowing motorists to choose according to their preference or loyalties. Currently three States ban the display of the ‘shopper docket’ fuel discount prices. MTA Queensland believes that there should be national fuel price board consistency. Ministers will meet again to discuss the issue in April. We look forward to the finalisation of the national standard.
APPRENTICE OF THE YEAR
A highlight of the very successful President’s Ball was the announcement of the MTA Institute of Technology Apprentice of the Year and the presentation of the $2,500 award courtesy of MTAA Super. Albert Doyle-Smith won the title and the prestigious award. Albert is studying for a Certificate III in Automotive Vehicle Body and is employed at the Exclusive Auto Centre, Newstead. Albert was both surprised and delighted to have achieved the high standard required to win Apprentice of the Year. His table of friends of family at the Presidents Ball gave
him a big cheer - as did each of us. Congratulations Albert.
VISITS FROM INTERNATIONAL DELEGATIONS
As reported in October’s Viewpoint we were preparing to host a delegation of used car dealers from the Hubei Province China Department Commerce. They concentrated on gaining an understanding of the used car market in Australia and exchanging information. They inquired about market regulations and marketing strategies. As the peak automotive body in Queensland, we were pleased to interact and provide the information about our used car market. As I write this Viewpoint, we are preparing to host a Paraguayan delegation of eight officials from the Ministry of Education and Culture. They are interested in the automotive industry, particularly our training curriculum and facilities. Paraguay is in the process of developing its own Technical and Vocational Education Training development plan for up to 2018. The purpose of the visit is to see and experience those institutions with best practice in the delivery of training frameworks and with state-of-the-art facilities.
The MTA Institute of Technology General Manager Training Operations Paul Kulpa has planned an informative schedule that includes the training program and a tour of the MTA Institute Technology.
TAFE QUEENSLAND APPOINTMENT
The Hon Gary Hardgrave, a MTA Institute of Training Company Director, has been appointed to the Queensland Technical and Further Education Board by the State Government. The Hon Gary Hardgrave is a former Commonwealth Minister for Vocational and Technical Education.
MOTOR TRADER
Bill Key, the Editor of recent editions of the Motor Trader was offered a job within the Commonwealth Games planning committee. Bill, with his passion for the automotive industry, gave the Motor Trader a quality pizzazz.We wish Bill well and welcome Jonathan Nash as the new Editor.
GREETINGS
To all Members, we wish you a merry Christmas and happy and prosperous New Year. Until next year. Take care.
News Subaru on the road to driving recommendation
ENGAGED MARKETING, A Brisbane-based consulting firm, has released the results from its 2013 Car Consumer Recommendation and Loyalty Study. Using the renowned Net Promoter metric, the study reveals the car brands most likely to impress their Australian customers. Third-time winner Subaru outperformed its rivals, including Ford and Holden, achieving a NPS of 38 per 6 | Motor Trader December 2013/January 2014
cent to secure its position as the 2013 cars loyalty leader in Australia. Toyota and Mazda followed with a NPS of 28 per cent and 26 per cent respectively. Overall, the Australian car industry averaged a score of 14 per cent. The study discovered 51.9 per cent of respondents said a recommendation from a friend, colleague or family member has the greatest influence when making a purchase decision. The impact of personal referrals is approximately three times greater than the next most influential marketing medium which was TV Advertising. More than 2900 automobile owners were invited to rate their experience
and the results identified consumer likelihood to recommend a brand to others. Nine of the biggest car brands in Australia were assessed including Subaru, Toyota, Mazda, Ford, Holden, Honda, Nissan, Mitsubishi and Hyundai. The Net Promoter Score (NPS) measures customers’ likelihood to recommend an organisation on a scale of 0 to 10, where 0 is highly unlikely and 10 is highly likely. Those who gave their brand a score of 0 to 6 were classified as Detractors, while those who gave a 9 or 10 ranking were classified as Promoters. The NPS is the percentage of Promoters minus Detractors.
Divisional news ERAQ: ENGINE RECONDITIONERS ASSOCIATION
I am rather disappointed with the recent activities within this division. As advised in the last Motor Trader, we had arranged for a tabletop display for the engine reconditioning division to be held at MTAQ. We had great response from suppliers and it was looking to be a great day. However, we had to cancel due to the fact that, even though over 110 invitations were sent out, we had only 6 RSVPs. In saying this I do understand the pressures that are mounting everyday, and this division is a shrinking one due to the ever-changing environment of engine reconditioning. On a positive note the ERAA have agreed to build a website for all ERAA members. It will have a technical forum and other beneficial features, so keep an eye for this in the coming months. Another initiative being looked into is an app for smartphones.
AED: AUTOMOTIVE ENGINEERS DIVISION
After calling on a few AED members across Queensland over the past few weeks it appears there has been positive movement on the work front for this division. I am in constant contact with our chairman Charlie Serchin and on behalf of our division I would like to thank him for his proactive approach. We have worked hard on key issues and have had some success - read more about Section 133 in Kellie’s column. We are arranging for another national meeting early in the New Year and will circulate outcomes after the meeting.
NACA: NATIONAL AUTO COLLISION ALLIANCE
Christmas has come early, with a couple of good hailstorms to keep the work flowing for a lot of our members. We held a committee meeting recently and have agreed to start rolling
out the shop grading system early next year, so keep an eye out for this exciting phase in the history of our industry. As mentioned last month we are also refreshing our choice of repairer campaign. The committee is looking at some options and this will be rolled out early in the New Year. We are collating data on poorly repaired, written off vehicles, so keep examples coming in - we need as many as possible to keep the momentum rolling with Queensland Transport. It is great to see some more IDRs being lodged. We need as many as these as possible so we can continue our work trying to have the Code of Conduct mandated here as in NSW. I am also pleased to advise that early in the New Year we will be hosting an industry discussion forum which will be open to all the smash repair industry. Our final newsletter has been distributed. We wish everybody a safe and happy festive season.
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December 2013/January 2014 Motor Trader | 7
QA
MTA &
MT: When did Agricultural Requirements start doing business? NB: The business was started in September, 1948 by the late Gerald Burgess. I started in January 1998, liked it so much, I bought the company in March 2002. MT: What products/services does the company provide?
Noel Baines
NB: The company motto is ‘One Stop Farmers’ Shop’. We are one of the leading retailers of both Case IH and Deutz-Fahr farm machinery in Queensland and we manufacture agricultural machinery too, from 90metre-wide AR Upton boom irrigators, and AR boom sprays that can be custom-built to particular specifications, to the Hayline hay accumulators and grabs. We have about 120-130 customers per day come through our hardware store seeking Castrol, Supercharge, Kincrome, Davey, John Deere Water, and many other branded items. I only take on franchises and products that complement our existing range. I have two tractor brands that, in my view, complement each other – Case IH and Deutz-Fahr. In 2012 we were the number two volume seller of Case IH in Queensland and the number one volume dealer for Deutz-Fahr. We have for many years been able to send staff to visit manufacturing plants domestically and overseas, which certainly helps our service and sales staff appreciate the products even better. Our customer base is predominantly in the Valley but we have moved out to the Downs and with the purchase a couple of years ago of the Upton Irrigation company our customer base for irrigators is now the east coast of Australia from North Queensland to southern Victoria including an export item to Pakistan.
Noel Baines is the owner of Agricultural Requirements, a company with roots in the Lockyer Valley community that stretch back to 1948. Providing agricultural machinery, products and services to the farming region known as Queensland’s ‘salad bowl’, the company has prospered, building its success on the loyalty of clients and staff MT: The Lockyer Valley has seen some severe flooding in recent years. How has the company responded? NB: We had the flood of the century in 2011 and it was a really tough time for everybody. That first night the enormity of it didn’t hit me, as I thought about midnight I would go home to Toowoomba only to be told by the police to go back where I came from until daylight – I ended up staying the night in my office. I was happy to do our part in the recovery program where we assisted where we could, and all our suppliers were very supportive to our business and this support was afforded to our customers. There was a lot of uncertainty at the time. What will the farmers do? Would they just leave the land? Strangely, before the flood, there had been a long drought which broke in September-October, and because of that we weren’t busy in our irrigation department. I hate putting people off, so we got those guys to expand our showroom. We knocked down walls, put in counters and it turned out to be a bit of a masterstroke because once everyone recovered from the flood our showroom was ready to be filled with the stock they required. We’ve seen a huge increase in our turnover in spare parts and I put that down to being able to utilise our staff resource very well. MT: There’s obviously a shared loyalty not only with your clients but with your staff. NB: Absolutely. We employ 44 people and I have staff who have been here over 50 years. 51 Years is the record at the moment and the average length of stay is about 16-17 years. I have the respect of my staff and that goes both ways, and I think that is one of the keys to our success. The trick in small business these days is to know what makes your staff tick and trying to
“SUCCESS TO ME
IS MAKING MY STAFF HAPPY. IF THEY’RE HAPPY, I’M HAPPY.” give them something that makes them successful. Success to me is making my staff happy. If they’re happy, I’m happy. What I love about my managers here is that they’re hands-on. Not one of my management team sits back and directs – they direct by working. I love being involved when they do deals and I’m part of the team. While my job is to manage, I love to get involved. If I hear the voice of a customer I know, I’m there. I often hear from customers who tell me, ‘where else can I go and get to speak to the owner.’ MT: What is your background? Have you always worked in the agricultural industry? NB: No. As bizarre as it may sound I still don’t know how to drive a tractor! My first job was selling shoes, but the career I wanted to be in was accounting. I got a job with an accountant in Bathurst and then moved on to Sydney and then to Toowoomba in 1986. I’ve always been involved with the numbers side of the business I have been told that as an accountant I make a good boss! MT: You’ve spent some time in Sydney and now you’re here in rural Queensland. How do they compare? NB: I love it here. Sydney is a fantastic place to work and absorb so much of our nations beginnings, but you may never meet anyone you know walking the streets. Part of my daily routine here in Gatton is walking to get the mail.
It gets me out of the office and meeting locals and it can take me an hour some days. A customer might stop me in the street and we start talking and it’s great to know who they are and to have that conversation. MT: There is talk of the urban sprawl from Ipswich, Toowoomba and Brisbane encroaching into the area. Do you get a sense of that? NB: Not at the moment. We do have a lot of people who have come here from the city. They have been successful and they want to have a go at small crop farming. They come here to our shop and we help them out with what we can. I think the country needs priority in the way we treat our farmers. As a nation we have to support what’s locally grown ahead of what we import. If the product is out of season try some other fruit or vegetable of the season. Get something that’s growing locally. Importing a replacement is not doing anyone any good, locally or nationally. We do produce enough quality products in this great country. MT: What does the future hold for Agricultural Requirements? NB: There are two things I like to tell my staff: One, ‘If you wouldn’t spend your money on something, why would I?’ And two, ‘If the worst case scenario is acceptable, do it’. With those two things you can’t go too far wrong. I think the future is good. Mother Nature has a part to play in that but the way we are going it’s more about the products we sell and continue to sell, and the back up service we provide. I don’t even try to understand it, I just know people will still buy tractors and we’ll have our share of that. And we will, providing we follow the ‘we promise late and deliver early’ motto and have pride in what we do. December 2013/January 2014 Motor Trader | 9
Holden has been a fixture on Australian roads, and a part of Australian culture, for more than 60 years. But, with the announcement of the closure of its manufacturing facilities, we will have to get used to living without the Aussie icon.
10 | Motor Trader December 2013/January 2014
2
013 WAS NOT a good year for Australian automotive manufacturers. In May, Ford announced it was to close its production lines in Australia by the end of 2016. Now it’s Holden’s turn. In an announcement that was shocking to hear – but was not, perhaps, a complete surprise - the company’s American parent, General Motors, announced that Holden is to halt the manufacturing of cars in Australia from 2017. GM also announced that Holden would discontinue engine manufacturing and significantly reduce its engineering operations and that as a result of the company’s actions approximately 2,900 positions would be impacted over the next four years, comprising of 1,600 from the Elizabeth vehicle manufacturing plant in South Australia and another 1,300 from the Victorian workforce. Holden, it said, would be transformed into a national sales company with a national parts distribution centre and a global design studio. “We are completely dedicated to strengthening our global operations while meeting the needs of our customers,” said GM Chairman and CEO Dan Akerson. “The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the
“I DON'T WANT TO PRETEND TO THE
PARLIAMENT THAT THIS IS ANYTHING OTHER THAN A DARK DAY FOR AUSTRALIAN MANUFACTURING.” PRIME MINISTER TONY ABBOTT
country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.” To illustrate its argument GM pointed out that since 2001, the Australian dollar had risen from US$0.50 to as high as US$1.10 and the appreciation of the currency alone meant that, at the Australian dollar’s peak, making things in Australia was 65 per cent more expensive compared to just a decade earlier. Holden has had an unhappy few years. It has posted losses in six of the past eight years and in 2012 the company recorded its second-biggest financial loss of $152.8million – a result the car maker blamed on producing locally-made vehicles. December 2013/January 2014 Motor Trader | 11
“WE REMAIN COMMITTED TO BEING A GREAT PART OF THE AUTOMOTIVE CULTURE IN THIS COUNTRY WITH THE HOLDEN BRAND, THROUGH OUR DEALERS, FOR MANY, MANY YEARS TO COME.” HOLDEN CEO MIKE DEVEREUX
"We are losing [money] on our locally produced cars and that's obviously a position we need to reverse," Holden chief financial officer George Kapitelli was reported saying at the time. "What the headline numbers today don't show is the difference between General Motors profitability versus Holden profitability. Holden's imported portfolio is profitable. The losses we have talked about today are a direct result of Holden building cars in Australia." That $152.8 million loss was despite a $73.5 million injection of government funding. And it is the amount of government funding - the company has reportedly received $1.8billion in tax payer funds over the past decade - that would appear to have been the catalyst for the events leading up to General Motors announcement. Prior to last year’s federal election, the Coalition promised it would withdraw $500 million from the $1.5 billion pool allocated to support the automotive industry and in October the new government under Tony Abbott entrusted the Productivity Commission to run an inquiry into public support of the industry – a chance for it to see just how much it would cost to keep things running. The inquiry was to release preliminary results on December 20 and a full report in March of 2014. However, speculation was rife that all was not well when the Prime Minister seemed to pre-empt any Commission findings with comments made in early December. “There is not going to be any extra money over and above
the generous support the taxpayers have been giving the motor industry for a long time” he said. On December 10, Holden boss Mike Devereux fronted the Commission saying no decision had been made about the company's future but it would require a “public-private partnership over the long term to be competitive”. A day later, whether the government and Holden were up for more negotiation or not, the deal was taken out of their hands when GM decided enough was enough and closed the door on Holden’s future as a manufacturer. “This has been a difficult decision given Holden’s long and proud history of building vehicles in Australia,” said Mr Devereux. “When we look at the business model (of assembling cars in Australia), it is not viable going into the future. "We have looked at every possible option to build our next-generation cars here. No matter which way we apply the
THE HOLDEN HURRICANE, 1969 GM will retain Holden's design skills via a 'global design studio'. A smart move, for Holden has a history of producing clever concept cars and this outrageous creation from the '60s is a fine example. The Hurricane was just 990mm tall with a midmounted, 4.2 litre V8 engine. Not only did it look fantastically futuristic, it had some remarkable technical gadgetry for its time, including Pathfinder – a forerunner to GPS which acted on magnetic signals built into the road, and Comfortron – an automatic temperature-controlled air conditioning system. It was also decked out with digital instrumentation, four-wheel disc brakes, a hydraulically-powered canopy and a rear-view camera connected to a CCTV screen in the centre console.
HOLDEN HISTORY 1856 James Alexander Holden starts a saddlery business in Adelaide.
1953 FJ Holden is introduced.
1958 1924 The company becomes the exclusive supplier of American car manufacturer 1962 General Motors in Australia. 1964 1931 The two companies merge to become General Motors-Holden's 1968 Limited (GM-H). 1936 Holden opens a new HQ and assembly plant at Fishermans Bend in Port Melbourne. 1968 1948 Holden manufactures the first all-Australian car. Prime Minister
Ben Chifley unveils the first Holden 48-215, known as the FX. The car is an immediate success.
12 | Motor Trader December 2013/January 2014
Holden sales account for more than 40 per cent of total car sales. Holden sells its one millionth car. Holden employee numbers peak at nearly 24,000. Holden Kingswood goes on sale as the new family car, offering a V8 engine (sourced from Chevrolet) for the first time. Holden’s most iconic model, the Monaro goes on sale.
1968 HK Monaro GTS takes first of Holden’s 29 (up to 2013) Bathurst endurance race wins.
1969 Radical two-door Hurricane sports car becomes Holden's first ever concept vehicle. 1978 The Commodore is introduced to Holden’s model line-up. It becomes the nations best-selling car. 1991 Japanese car-maker Toyota beats Holden and Ford to market leadership for the first time in Australia. 2002 Holden's market share peaks at 21.6 per cent share. 2011 After 15 years as the top selling vehicle, the Commodore is outsold by the Mazda3.
numbers, our business case to make and assemble cars and engines in this country is not viable." A difficult decision then, and a painful one too. And it could get worse. The knock-on effects could be devastating, with component supply companies involved likely to be hit hard as orders from Holden and Ford dry up. South Australian Premier Jay Weatherill said this flow-on effect would hit 13,000 workers in his state. Some commentators argue as many as 50,000 automotive jobs could be lost. However many workers the decision to close Holden's manufacturing arm affects, ultimately it may end up costing even more. For Holden’s demise now leaves Toyota as the only major player. It too is expected to be put under enormous stress - many experts believe its days in Australia are now numbered. In a statement released shortly after Holden made its announcement, Toyota said “We are saddened to learn of GM Holden’s decision. This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia.” “We will now work with our suppliers, key stakeholders and the government to determine our next steps and whether we can continue operating as the sole vehicle manufacturer in Australia. “We will continue with our transformation journey as planned.” Quite what that transformation will be is anyone’s guess.
“THE JOB OF AN AUSTRALIAN
GOVERNMENT IS NOT TO GET RID OF AUSTRALIAN JOBS. THIS IS THE BIGGEST CAR CRASH IN AUSTRALIA’S HISTORY.” BILL SHORTEN, LEADER OF THE LABOR PARTY
HOLDEN OR FORD? IT’S THE QUESTION that can split families and end friendships. For decades the rivalry between the two car companies has been a mainstay of the Australian Touring Car Championship/V8 Supercar scene. Whether it be Peter Brock rattling around Bathurst in a Torana in 1972, Allan Moffat in his Ford GTHO Phase III in 1971 or Jamie Whincup winning his fifth title in the VF Commodore in 2013, nothing stirs the blood quite as much it seems. But, by the time the 2018 season comes around, it will all be over. The Falcon will already have passed away, replaced, for want of a better word, on public roads by the Ford Mustang. Whether or not the Mustang will show up on the racetrack is yet to be seen. As for the Commodore? General Motors has a couple of powerful cars up its sleeve including the Chevy Camaro. The obvious choice though is the Chevy SS – ironically, a car based on the Commodore. We’ll have to wait and see.
Motorsport Calendar V8 SUPERCARS 2014 Upcoming events Feb 27-Mar 2: Rd 1, Clipsal 500, Adelaide, South Australia Mar 13-16: NC Australian Grand Prix, Albert Park, Victoria Mar 28-30: Rd 2, Tasmania 400, Symmons Plains, Tasmania Apr 4-6: Rd 3, Winton 400, Winton, Victoria Apr 24-27: Rd 4, ITM 500 Auckland, Pukekohe, New Zealand
FORMULA 1 2014 Upcoming events Mar 12-16: Rd 1, Australian Grand Prix Albert Park, Melbourne Mar 28-30: Rd 2, Malaysian Grand Prix, Sepang Apr 4-6: Rd 3, Bahrain Grand Prix, Sakhir International Circuit Apr 18-20: Rd 4, Chinese Grand Prix, Shanghai
MOTO GP 2014 Upcoming events Mar 21-23: Rd 1, Qatar Losail International Circuit, Qatar Apr 11-13: Rd 2, Austin Circuit of the Americas, Austin, Texas Apr 25-27: Rd 3, Argentina, Autodromo Termas de Rio Hondo May 2-4: Rd 4, Spain, Jerez, Spain
WRC 2014 Upcoming rounds Jan 16-19: Rd 1, Rallye Monte Carlo, Monte Carlo Feb 6-9: Rd 2, Rally Sweden, Karlstad Mar 6-9: Rd 3, Rally Mexico, Leon Apr 3-6: Rd 4, Rally de Portugal, Faro
December 2013/January 2014 Motor Trader | 13
Australia's best cars Judges’ Choice, the Mazda6 Touring
JUDGES’ CHOICE 2013
MAZDA HITS IT FOR 6 “ F OLLOWING A BATTERY of extensive road tests to determine the nation’s top vehicles for safety, design and performance, Australia’s top motoring experts have spoken and the leading cars in the country have been revealed at the 2013 Australia’s Best Cars Awards. Introduced in 2000 by the nation’s motoring clubs, including the RACQ, the awards are designed to assist motorists with their car buying choices and to advocate for safer and more affordable vehicles. Brisbane’s South Bank was the setting for the announcement of the winners, and of the 45 finalists in the 15 categories it was the Mazda6 Touring which not only drove off with the award for Medium Car Under $50,000, but also the Judges’ Choice award – an accolade bestowed on the car the panel of 12 judges felt they were most likely to buy.
14 | Motor Trader December 2013/January 2014
WHILE NOT DESIGNED SPECIFICALLY AS A SPORTY CAR, THE MAZDA 6 WAS DELIGHTFULLY NIMBLE WITH PLENTY OF POWER AND A SMOOTH SIX-SPEED AUTO.”
RACQ Executive Manager Traffic and Safety Policy, Steve Spalding, said the Mazda6 had taken the Judges’ Choice not only for emotive appeal, but also was a benchmark car in its class that would influence the direction of competitors. Inside, the design, quality and finish were good enough to compare with more expensive European vehicles. It provided value for money,
including push-button engine start, leather seat trim, satellite navigation and powered leather front seats. The new model was longer and wider and, as a result, provided enough leg-room to comfortably carry four adult passengers, with a spacious 438-litre boot. Under the bonnet a 2.5-litre, fourcylinder engine showcased Mazda’s SKYACTIVE fuel saving technologies, resulting in an ADR combined fuel average of 6.6litres/100km. While not designed specifically as a sporty car, the Mazda6 was delightfully nimble with plenty of power and a smooth six-speed auto. To be considered for the Judges Award, it required a 5-star ANCAP safety score, low fuel consumption with a green vehicle guide rating of 3.5 stars or more, and be priced below the luxury car tax threshold. Jarrod Gieschen, State Manager for Mazda, was delighted with the
company’s outstanding result. “The car was recently voted Japanese Car of the Year and it has been very well-received in North America, Europe and other major markets,” he said. “It’s very exciting to win this award especially given its consumer focus.” Mr Spalding said this year’s awards included a category for 4x4 dual cab utes for the first time. Dual cab utes represented the third largest-selling vehicle category in Australia last year. Sales had grown 25 per cent over 2011, and they now outsold any of the popular SUV categories. The Ford Ranger XL won the category, ahead of the Mazda BT-50 XTR and the VW Amarok Highline
TDi 420, with a redesigned, more integrated and accommodating cabin and a 3.2 litre, five-cylinder turbo diesel engine. Mr Spalding said the category had come a long way in a short time, offering the comfort, space and safety that many motorists were seeking in a crossover vehicle that could meet both work and family requirements. “A few years ago the dual cab utes were low on safety features, and didn’t even have anchor points for child seats,” Mr Spalding said. “Now, many vehicles in this category really do offer the power, space and safety features required to double as both off-road workhorses and the weekend family runabout.”
Paul Kulpa with Norm O’Brien
MTAQ AND RACQ PARTNER FOR CERT IV VEHICLE LOSS ASSESSING PROGRAM
BEST LIGHT CAR 2013
Best Light Car, Renault Clio Expression TCe
120
AUSTRALIA’S BEST CARS 2013 Best Light Car
Renault Clio Expression TCe 120
Best Small Car under $35,000
Hyundai i30 Active
Best Small Car over $35,000
Audi A3 Sportback 1.4 TFSI COD
Best Medium Car under $50,000
Mazda6 Touring
Best Medium Car over $50,000
BMW 320i
Best Large Car under $60,000
Holden Commodore SV6
Best Large Car over $60,000
Lexus GS 350 F Sport
Best People Mover
Award withheld
Best Sports Car under $50,000
VW Gold GTi
Best Sports Car $50,000 to $100,000
BMW M135i
Best SUV under $45,000
Subaru Forester 2.5i
Best SUV $45,000 to $65,000
Hyundai Santa Fe Highlander CRDi
Best Luxury SUV over $65,000
VW Touareg V6 TDi
Best All Terrain 4WD under $100,000
Land Rover Discovery 4 TDV6
Best 4x4 Dual Cab Ute
Ford Ranger XL 3,2 (d)
Judges’ Choice
Mazda6 Touring
IN A PARTNERSHIP between two great Queensland motoring organisations, the MTA Institute of Technology has presented 36 RACQ motor assessors with Cert IV Vehicle Loss Assessing qualifications. All the RACQ operatives had the required skill levels so that no gap training was required. “It’s important to note that all the RACQ assessors had the necessary trade qualification, which was a pre-requisite for the qualification,” MIT General Manager Training Operations Paul Kulpa said. “We have always had the view that the assessors must have trade qualifications to work with us, “ Executive Manager Motor Assessing Norm O’Brien said. The Cert IV Vehicle Loss Assessing program is designed to provide insurance clients, and other customers represented by repairers, vehicle drivers, salvage operators, and government departments and associations the most technically qualified and professional Motor Loss Assessors possible. “Insurers and their customers will both benefit from this program, this sort of qualification has been talked about within the industry for years,” Mr Kulpa said.
December 2013/January 2014 Motor Trader | 15
Make: 1932 FORD ROADSTER (REPRODUCTION) Engine: 350 CHEVY Transmission: 3-SPEED AUTOMATIC Owned: FOUR YEARS Owner: MARK WELLS
THE
GREEN
L
ET’S TRAVEL BACK in time - let’s say 60 years to the streets of a small southern Californian town, circa 1955. It’s the weekend. It’s summer. There’s not much to do. There’s a drive-in theatre maybe. There’s a diner too with Chuck Berry churning out the first blaring chords of rock ‘n’ roll from the jukebox inside as carhops deliver milkshakes to youngsters in their cars. Ah, yes, the cars. These are no ordinary cars. They look familiar but different. The bumpers are gone, the fenders too. And where once there was a hood covering the engine, now there is nothing. Why would there be? For the original engine has been removed, replaced by something more powerful. Who would want to hide that? This is the golden age of the hot rod, and the hot rod holds a special place in the heart of enthusiasts. Like Mark Wells and his son Cory, the father and son team who run Wells Smash Repairs in Labrador on the Gold Coast, as well as HHarvey Prestige (also on the Gold Coast) and Wells Bodyworks in Hobart, Tasmania. To build a hot rod these days is no mean feat. It takes time to find the resources to take on such a project. “Being in the industry 34 years and raising a family, running the businesses – you don’t have the money or time,” says Mark. “Once I reached 50, I thought it was about time I did it. I always wanted to have one.”
16 | Motor Trader December 2013/January 2014
“The chassis came in two parts," says Cory. "It has been shaved so there’s not a weld to be seen. Same with the body – you can’t tell it's fibreglass until you try and put a magnet on it.” “The engine is a 350 Chevy and is heavily worked with a 6-71 blower on it. It puts out somewhere near the 650hp mark. It’s like a go-kart!” That’s a good comparison, for at around 1100 kilos, the Roadster weighs much the same as some of today’s small cars. “It’s fun to drive. The biggest thing is you are constantly thinking about what to do with that amount of horsepower.” “It’s far too powerful for me!” adds Mark. “When I was 21 it wouldn’t have been enough power, but now I’m 53 I’m scared of dropping it off the road or putting it into the curb! Now I’ve got all the power but I’m not game to use it!” About 500 man hours went into creating the car – a labour of love for Mark, Cory and their committed workshop team. “A lot of money and time has been poured into it,” says Cory. “The wheels are custom imports, and the tyres came from America. The treads on the front and rear are the same. 99 per cent of hot rods have different tread on the front
compared to the back. That’s the sort of thing that bugs Mark. He’s a perfectionist.” “There’s a fibreglass roof on it too that has been covered in canvas to make it look like a soft-top. It’s demountable, so you can drive it around without the roof.” Edelbrock rocker covers and other components dot the engine and these add to the heritage feel of the car and, as Cory says in a wicked understatement, they ‘look good’. Inside, the Roadster looks just as sweet. “The interior was done by Sharp Trim on the Gold Coast,” says Cory. “The car was caught in a fire in early February. It tarnished the engine, destroyed a lot of the paint on the body and destroyed the interior. It was a two month rush to get everything back in it again and Sharp Trim came through and got the interior down in about 4 days, which is unheard of.” With such a car it’s no surprise to find it’s not Mark’s everyday run-around. “The cars only been out a dozen times and normally it’s only driven between the panel shops!” he says. And, equally, it’s no surprise to find that when it is out on the road, the Roadster turns heads. So what happens when a young gun in a Monaro or WRX pulls up next to you?
DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members. Cory laughs. “You let them go,” he says. “This car would absolutely annihilate most things and although it might be tempting, it’s so powerful you could end up putting your foot down and end up facing the wrong way!” “We get a lot of looks from older people,” he adds. “They come up to me and talk about it and say their father had one of them, that sort of thing. Maybe they recognise something from that era. It’s actually pretty cool.” Cool indeed. December 2013/January 2014 Motor Trader | 17
give yourself an Technical Information Service Your MTA Queensland membership gives you access to a vast technical library. Industrial Relations As a member of MTA Queensland you have access to industry-specific industrial relations advice and representation. Consumer Complaints MTA Queensland will assist member businesses and facilitate in the event of consumer complaints. Legal Advice Members can access professional legal assistance as part of their membership of MTA Queensland. Industry Awareness Members receive regular industry specific publications to keep you abreast of changes, legislative requirements, developments and initiatives in your industry. • The MTA Queensland logo provides an element of differentiation between you and other businesses and may just form the key point of difference for a potential customer.
Save with our Corporate Partners
The Capricorn Society is the largest independent automotive cooperative in Australia. Members benefit through group purchasing to secure price advantage.
Dun and Bradstreet is the nation’s foremost credit control and debt collection agency. Members are eligible for substantial savings on annual subscriptions.
The Commonwealth Bank offers members some of the lowest EFTPOS charges in the country. Members have saved thousands with CBA.
MTAA Superannuation is the industry’s superfund. Our superannuation partner has over 200,000 members who enjoy excellent service and returns.
Staples is the leading supplier of a complete range of office consumables, bulk stationery and janitorial supplies.
• Being a Member gives you input in the future productivity and profitability of your industry and the opportunity to positively influence it’s future through divisional and regional committees.
NRMA Insurance has vast experience in the provision of specialist insurance services to the automotive industry. Using the buying power of the member base, NRMA can achieve pricing far more attractive than business owners can negotiate individually.
MTA Queensland, Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 | 07 3237 8777 | info@mtaq.com.au | www.mtaq.com.au
20120064
• MTA Queensland actively lobbies Governments with the best interest of our members to reduce red tape and streamline process for business owners.
Contents 19 Gala Ball special 22 Industrial relations 23 Training matters 26 Member profiles
EXCLUSIVE AUTO CENTRE GASOLINE ALLEY AUSTRALIA PTY LTD ROCKLEA TRUCK PARTS
T WAS A smart, sophisticated affair at the Sofitel Hotel on November 23, as 188 guests from the automotive industry put on their best attire to attend the MTAQ’s annual President’s Ball at the hotel’s Ballroom Le Grand. The ‘Black and White’ themed event, supported by Suncorp, was a celebration of a challenging and
“IT WAS A NIGHT
AT WHICH THE HIGH CALIBRE OF STUDENTS COMING OUT OF THE MTA INSTITUTE OF TECHNOLOGY COULD BE CELEBRATED AND HONOURED WITH THE NAMING OF THE 2013 APPRENTICE OF THE YEAR.”
rewarding year - a year that saw MTAQ work successfully on a number of issues in support of the industry. The evening was hosted by former government minister and current MIT Board member, the Honourable Gary Hardgrave and special guests included Steve Minnikin MP (Assistant Minister for Public Transport) representing the Premier, and Senator for Queensland Sue Boyce, who was representing the Parliamentary Secretary for Industry. Queensland Environment Minister Andrew Powell was also represented. Speakers included David Fraser, President of MTAQ, Suncorp National Industry Relations Manager Rob Bartlett and CEO of MTAA Super, Leeanne Turner. It was a great evening, with guests enjoying drinks, canapés and a threecourse meal as well as entertainment provided by the nine-piece Dennis Knight Band. Special, unscheduled entertainment was provided by members of the England cricket team who were
The Honourable Gary Hardgrave
December 2013/January 2014 Motor Trader | 19
E S S E N T I A L S
BRIGHT FUTURE AS INDUSTRY CELEBRATES MEMBERS I ESSENTIALS
M E M B E R S
Gala Ball special
E S S E N T I A L S M E M B E R S
Gala Ball special spotted in the hotel and who were in the midst of their first Ashes Test drubbing at the hands of Australia. But as David Fraser, President of MTA Queensland, mentioned in his note of thanks, it was also a night at which the high calibre of students coming out of the MTA Institute of Technology could be celebrated and honoured with the naming of the 2013 Apprentice of the Year. Ms Leanne Turner, CEO MTAA Super Fund announced the recipient of the inaugural MTA Institute of Technology Apprentice of the Year Award, and it was 19-year-old Albert Doyle-Smith, a panel student from MTAQ member Exclusive Auto Centre in Newstead, who received the trophy and a cheque for $2500. Mr Doyle-Smith was delighted at receiving the award. “It was quite a shock,” he said. “My family were there and they were delighted and very proud.” Nick Contarino of Exclusive Auto Centre was equally pleased for his young charge. “He’s got a mature head on his shoulders,” he said. “That’s one thing he has over a lot of other young guys - a young mind but a mature mind at the same time. He loves cars, loves metal fabrication. We’re all very proud of him. He’s great to work with, has a great attitude and lives and breathes motorcars.” As for the future, Mr Doyle-Smith has been working hard to realise a big ambition - designing a car that he hopes one day to produce and build a business around. It’s an ambition that both his training and the award should help him to achieve. “The training was really enjoyable and the money will be a great help,” he said. “I want to start a car manufacturing business and I’ve got 90 per cent of the car designed. I’ve spent a lot of time studying and researching how to make the company work successfully and Nick and a few other people are behind me with the whole project.” We say watch this space. Vehicle manufacturing in Australia may have a bright future.
le-Smith
Leanne Turner & Albert Doy
20 | Motor Trader December 2013/January 2014
David Fraser
M E M B E R S
Leanne Turner
E S S E N T I A L S
Iby Sedic, Emily Metelmann
Paul Peterson, Peta Peterson, Louise Fraser & David Fraser
& Adam Metelmann
Suzie Doyle-Smith, Albert Doyle-Smith, Sharen Smith & Barry Vickers
December 2013/January 2014 Motor Trader | 21
Industrial relations
TED KOWALSKI INDUSTRIAL RELATIONS MANAGER
MOTOR VEHICLE DEALERS (PUBLIC HOLIDAY) TRADING HOURS 2014 The Gazetted Public Holidays for 2014 are: New Year’s Day...........................................Wednesday 1st January Australia Day...............................................Monday 27th January Good Friday................................................. Friday 18th April Easter Saturday........................................... Saturday 19th April Easter Monday............................................Monday 21st April Anzac Day....................................................Friday 25th April Queen’s Birthday........................................Monday 9th June Brisbane Show Day..................................... Wednesday 13th August Labour Day.................................................. Monday 6th October Christmas Day.............................................Thursday 25th December Boxing Day...................................................Friday 26th December Motor Vehicle Dealers in Brisbane, Ipswich, Logan, Beenleigh, Pine Rivers, Redland, Gold Coast, Redcliffe and near North Coast (Shires of Noosa, Maroochy, Landsborough and Caboolture) may trade from 8am to 6pm on the following gazetted public holidays i.e., Wednesday 1st January, Monday 27th January, Saturday 19th April, Monday 21st April, Monday 9th June, Wednesday 13th August, Friday 26th December. All dealers in the above areas must close on Friday 18th April, Friday 25th
April, Monday 6th October, Thursday 25th December and all Sundays. Motor Vehicle Dealers in the rest of Queensland (i.e., those areas not listed above) must close on all gazetted public holidays i.e., Wednesday 1st January, Monday 27th January, Friday 18th April, Saturday 19th April, Monday 21st April, Friday 25th April, Monday 9th June, Monday 6th October, Thursday 25th December, Friday 26th December and all Sundays and local Show Days.
MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name
Principal/s
Address
Division
Auto Outlet Centre
Robert Evans
48 Compton Road Underwood Q 4119
admin@autooutletcentre.com.au
UCD
Felsie’s Mobile Workshop
Gordon & Kathryn Fels
44 Byrne Street Julia Creek Q 4823
felsies@bigpond.com
AED
Bridgestone Select Bundaberg
Shane Barsby
1/2 Activity Street Bundaberg Q 4670
sbarsby@tpg.com.au
TUDQ
22 | Motor Trader December 2013/January 2014
HE MTA INSTITUTE of Technology (MIT) last month played host to a delegation from the South American nation of Paraguay. The eight-member delegation, representatives of Paraguay’s Ministry of Education and Culture (MEC), were in Australia to visit and research training and educational facilities involved with technical and vocational education and training (TVET), including MTA Queensland’s Sir Jack Brabham Automotive Centre of Excellence. The two-week trip to Australia is part of the two-year Public Sector Linkages Program (PSLP) - a partnership between the MEC and the Queensland University of Technology (QUT), funded with the support of the Australian government’s Aid program under the auspices of the Department of Foreign Affairs and Trade. The PSLP program is designed to incorporate training activities in both Paraguay and Australia to strengthen the MEC’s plan for implementing TVET programs. “The original engagement came through another program with the MEC,” said David Kozar, the International Development and Program Appointment Officer for QUT. “During that time we realised there was a need to build up the TVET capacity in Paraguay.”
“They are currently going through a very big reform under the new Presidency, so this program is helping them gain exposure to Australian best practice so they can introduce some of the things they have seen here.” “We expect them to develop some real tangible outputs from their time here in Australia.” Edgar Osvaldo Brizuela, the Head of the Paraguayan delegation and the Director of Knowledge Innovation for the MEC, was very impressed with what he had seen on the visit. Speaking through an interpreter, Mr Brizuela said being exposed to the Australian system, its institutions and the links between the government and the private sector had been very valuable for him and his team. “We are working to review and make reforms in our educational system,” he said. “Having had the this visit, it will assist us in trying to incorporate all this in our country.” “The problem we are having at the moment is that there is no close link between the government and private sector industries,” Mr Brizuela said, adding that the Paraguayan government had begun to tackle this issue. “There are new laws in Paraguay that will facilitate this partnership and these are
one of the pillars of the policies of our new President.” It is not only the association between the government and private sectors that the Paraguayan government is tackling. The development of educational and training links between Australia and Paraguay are also being examined, developed and strengthened. “We are trying to think of different strategies so we can link Paraguayan institutions with Australian institutions. Also, we are looking at the possibility of bringing teaching staff from Australia to Paraguay to train our teachers.” During their trip, the delegation visited many facilities and institutions but Mr Brizuela was particularly impressed with what he had seen at MIT and what it suggested could be done for the Paraguayan automotive industry. “The industry has grown immensely in the last few years but we don’t have mechanics that have been properly trained and have attended courses.” “We need professional panel beaters and automobile mechanics and we don’t have enough tradesmen to work with automatic vehicles.” “If we are lucky enough to create awareness in the private industry we might be able to create workshops like this to train our students.”
Delegates were given Australia sporting uniforms to mark their visit to MTAQ . . . . . . and had fun while touring the facility.
The Paraguayan delegate's with Paul Kulpa, General Manager Training Operations MTAQ (centre) and Kellie Dewar, General Manager MTAQ (right)
December 2013/January 2014 Motor Trader | 23
E S S E N T I A L S
TRAINING A KEY FACTOR IN PARAGUAY'S FUTURE T
M E M B E R S
Training matters
E S S E N T I A L S M E M B E R S
Training matters TALENT AND TENACITY PAYS OFF FOR BREANNA
B
REANNA OYSTON, A newly qualified tradesperson and former student with the MTA Institute of Technology (MIT) has won the Apprenticeships Queensland Apprentice of the Year Award for the Lockyer Valley. Breanna, 21, who completed her Vehicle Painting Apprenticeship with Bramwell Auto Group in Plainland, was presented with the trophy at the Apprentices Queensland award night last month and was thrilled with the win. “It was great. It was very humbling. I wasn’t expecting to win so it was really great being recognised because I have put a lot of effort into my apprenticeship,” she said. “I was looking for an apprenticeship for nearly 14 months, and I was close to giving up because no one was giving me a chance. Then I pestered Mark at Bramwell Auto Group into giving me some work experience. I will always be grateful to them for the opportunity
to get my foot in the door and to show how willing I was to learn and how much I wanted it.”
“She’s been with us for a few years and she’s a very hard worker,” said Mark Bramwell. “She is the most impressive apprentice I’ve ever had and I’ve had many of them over the last 35 years. She ticks all the boxes.” Breanna’s trainer from MTA Institute of Technology, Richard Jenkins, was also full of praise for her. “If you gave her something to do, she had it done,’ said Richard. “She never fell behind with anything and nothing was ever too much of a problem for her to deal with. When we went through the training she was like a sponge, she just wanted more information.” Like many young people with talent, Breanna has a plan for her future. “I’ve always had an interest in cars and really liked art and design, so I put two and two together. “I always wanted to do a job that I know I’m going to like doing and want to get up every morning and go to.”
(MIT) in partnership with the Kangan Institute in Victoria. The course provides all the information a mechanical repairer needs to understand hybrid technology and the associated safe working practices and is a preparation for businesses to contend with the expected burgeoning business of Hybrid Electric Vehicles (HEVs) and Electric Vehicles (EV).
Jason, 33, who is licensed to perform safety certificates on light vehicles and small trailers and is also a licensed smash tow operator, recognised the value of the course as soon as he saw it become available. “We see these vehicles come through the workshop and we thought it would be an awesome idea to do the course. It has given me the confidence to be able to service the vehicles and have a better understanding of them. It’s a foundation for the future.” Ross Pickering of Samford Garage recognised the value not only of the course but of Jason’s ability too. “He is constantly striving to improve his knowledge and skills and is the first to nominate for new courses. Among other achievements, including certification in the specialised area of automotive air conditioning, these qualifications equip Jason with skills to handle any new emerging sophisticated technologies that are becoming part of the new automotive vehicles.”
“SHE’S THE BEST APPRENTICE I’VE EVER HAD.”
HYBRID SKILLS A REAL BOOST
Samford Garage has been around a long time, since 1926 in fact, and it’s a pretty safe bet that back then the idea of a battery-powered, hybrid or electric motorcar in the form we see them today would have been viewed as science-fiction. But that was then, of course. These days the automotive industry is a different beast and learning the skills to adapt to a changing environment is a challenge that Samford Garage embraces wholeheartedly. Jason Sanderson, a qualified light vehicle automotive mechanic with the business, who is also nearing completion of his mature diesel fitter apprenticeship, recently completed the Hybrid and Battery Electric Vehicles Safety, Inspection and Servicing course run by MTA Institute of Technology 24 | Motor Trader December 2013/January 2014
“It’s a great opportunity, and the MIT facility is amazing.” “We hope to continue this again next year with another tutor from Fiji, it’s imperative for us to keep up with all the latest technology and work practices in our industry, and that’s what coming
“APTC SUPPORTS
PACIFIC ISLANDER WOMEN AND MEN GAIN AUSTRALIAN STANDARD QUALIFICATIONS TO REALISE IMPROVED EMPLOYMENT OPPORTUNITIES NATIONALLY, REGIONALLY AND INTERNATIONALLY.”
here is all about,” said Roger. The APTC is funded by the Australian Government and managed through the Department of Foreign Affairs and Trade - Australia Aid APTC was established in 2007 to increase the supply of skilled workers in targeted industry sectors across the Pacific region. APTC supports Pacific Islander women and men gain Australian standard qualifications to realise improved employment opportunities nationally, regionally and internationally. MIT Senior Trainer Marcello Riotto agreed it was a valuable exercise. “We support professional development opportunities, both internally and externally, and would be happy to support APTC again in the future,” he said. “It is mutually beneficial for both parties as we can both share training strategies and implement them in our schedules.”
December 2013/January 2014 Motor Trader | 25
E S S E N T I A L S
TA INSTITUTE OF Technology played host to two Australia Pacific Technical College (APTC) trainers from Fiji last month with International Trainer Roger West and National Trainer Josaia Macanavere on a professional development visit. The idea of the trip was to gain an insight into Australia’s level of quality and commitment to training and take new initiatives back to Fiji to train the next generation of mechanics in the South Pacific region. With one week at the Sir Jack Brabham Automotive Centre of Excellence at Eight Mile Plains and a second week working at Oldmac Toyota, Josaia, who has over 15 years experience in the industry, said it had been a very valuable exercise. “I have definitely been learning a lot over the two weeks, and have some good ideas to take back home for our training,” said Josaia.
M E M B E R S
FIJI TRAINERS GAIN AUSTRALIAN INSIGHT M
Exclusive Auto Centre Location: Location: 28 Chester Street, Newstead, QLD, 4006 Type of business: Paint and panel shop
M E M B E R S
E S S E N T I A L S
Member profiles
Number of employees: 10 Trading since: 1986 MTAQ member since: 1986
Exclusive Auto Centre
Gasoline Alley Australia Pty Ltd Location: 3445 Pacific Highway, Springwood Type of business: Harley-Davidson dealership Number of employees: 30 Trading since: 2011 MTAQ member since: 2011
Rocklea Truck Parts
26 | Motor Trader December 2013/January 2014
How did you hear about the Motor Trades Association of Queensland? (MTAQ) Been in the industry for 30 years. Very informative, with up to date industry advice. How has being an MTAQ member benefited your business? Keeps us compliant within the industry guidelines.
What has been your proudest business achievement to date? 2012 – Dealer of the Year – HarleyDavidson Australia. We have only been operating since June 2011, within our first two years we have been awarded a national award. What is the best thing about working in your industry? The product and the characters that we are able to assist making a dream into a reality with motorcycles.
What is the best thing about working in your industry? The best thing is working with cars generally, making something old or broken look like new, working with young people and helping them and us achieve our dreams.
What is the best piece of business advice you have ever given or been given? Love what you do and you will never have to work a day in your life. Knowledge and skills cost nothing to carry. What would you say to someone thinking about joining MTAQ? You are mad if you don’t join MTAQ. You cannot afford to not know what is happening within the industry.
What is the best piece of business advice you have ever given or been given? “Treat every customer as if they sign your pay cheque, because they do!” What would you say to someone thinking about joining MTAQ? It has numerous benefits that can only enhance your business’ success within the automotive industry.
Gasoline Alley Australia Pty Ltd
Rocklea Truck Parts Location: Location: 1136 Boundary Road, Wacol Type of business: Truck parts and truck tyres Number of employees: Nine Trading since: 1978 MTAQ member since: 2003
How did you hear about the Motor Trades Association of Queensland? (MTAQ) Not sure, it was such a long time ago.
What is the best thing about working in your industry? Variety.
How has being an MTAQ member benefited your business? Information via emails and meetings and good payroll support.
What is the best piece of business advice you have ever given or been given? Look after your customers and the rest will take care of itself.
What has been your proudest business achievement to date? Don’t really have one but I am most proud when I think of where I started from, and where I am now.
What would you say to someone thinking about joining MTAQ? Do it, even if it’s just for the updates.
December 2013/January 2014 Motor Trader | 27
E S S E N T I A L S
How has being an MTAQ member benefited your business? MTAQ has benefitted my business by giving me access to technical and legal information as well as networking with peers.
What has been your proudest business achievement to date? Finishing my apprenticeship and having a great mentor in Merv Richardson and my previous boss Ian Davies.
M E M B E R S
How did you hear about the Motor Trades Association of Queensland? (MTAQ) I have known about MTAQ since 1974 when I was doing my apprenticeship.
2014 Retail Motor Trade Diary THIS QUALITY DIARY FEATURES: ✷ Professional design complete with gold corners and stitched spine backing ✷ Important telephone numbers and contact details ✷ 30 minute per day time slots ✷ Day by day planning
Member’s price $22 (GST inclusive) plus postage and handling. Non Member’s price $25 (GST inclusive) plus postage and handling. TO ORDER: Just fax this completed form back to MDocs at MTA-Q on (07) 3844 4488, OR email mdocs@mtaq.com.au Please supply: ____ copies of the 2014 Motor Trade’s Diary at TOTAL $
(Plus postage and handling)
Company Name: Address: Postcode: Phone: (
)
Fax: (
Contact Name:
)
Date:
MTA-Q Member: Membership number/Account number: Capricorn Account number: Please bill to my account OR see payment details below Method of Payment: Cheque (Payable to MTAQ) / MasterCard / Visa Card Number: __ __ __ __/ __ __ __ __/ __ __ __ __/ __ __ __ __/
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MTA Queensland Address Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3237 8777 Toll Free 1800 177 951
20120033
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CVN: __ __ __ /
Investment matters
MARKET WRAP MARKET REVIEW
After the US government shutdown that delayed the flow of economic data, investors again began to speculate on the timing of the Federal Reserve Stimulus cuts. However the mixed corporate earnings and economic indicators supported the dovish stance outlined by new Chairwoman-elect Janet Yellen in her speech before the Senate Banking Committee. Domestically, house price gains again dominated talk, however, specific communication from the RBA implied policy makers are not yet concerned, and are in fact welcoming it. Later in the month headlines focused on the Governor's comment that the central bank "remains open-minded" to "large scale FX intervention" however the central bank still appears some distance from a material change in FX policy and is instead attempting to jawbone the currency lower. AGM season is still continuing with companies providing trading updates and commentary. However, in general, they have been cautious with soft top-line growth a consistent message.
MARKET OUTLOOK
Over the past year we have seen solid returns and from a price to earnings (PE) perspective experienced a strong increase. The market is now trading at a level similar to the earlier part of the decade and in particular the Australian market ex resources has an expected PE ratio that has expanded 19 per cent over the past year. We doubt there is much more PE expansion possible left in the market. Rather, at this point in the cycle, we continue to look for returns to be driven by growth in earnings in the following areas.
“THE MARKET IS NOW TRADING AT A LEVEL SIMILAR TO THE EARLIER PART OF THE DECADE.” Funds Flow and Equity Market Activity The main explanation for the higher PE is the low interest rates. Low cash rates makes the grossed up dividend yield of equities look reasonably attractive and, likewise, bond yields remain low compared to equity yields. Over the past month we have seen continued improvement in funds flowing into equities, especially offshore, and an increase in IPO activity in Australia. This augers well for listed fund managers and financials as clearly activity levels are picking up. Judging from the amount of new floats hitting our desks at present, we believe the outlook for next half is stronger again. Offshore Companies The RBA has announced that they “need” to see the currency lower to drive an improved growth outlook for the domestic economy. We concur with this and expect to see a range of strategies with this goal in mind. A lower currency would be helpful for the earnings of a range of offshore companies, however, we do not like to base a decision entirely on a call on the currency. We note that some of these offshore companies have underperformed over the past quarter and furthermore the fundamentals of the US and global economies continue to surprise on the upside.
Australian Housing Companies exposed to the domestic economy have enjoyed a strong rebound over the past quarter as the market anticipates the improved confidence post-election will drive better earnings. We remain concerned this confidence will fade. However, we are more confident regarding the outlook for housing. Housing starts in Australia have been very low for the last ten years yet demand remains strong. Government red tape as well as high charges for new properties has limited opportunities for developers. However, new State Governments in NSW and Qld have moved to address this problem and as a result we are seeing more stock coming to the market. Affordability has also been an issue on the demand side of the equation but lower interest rates and moves by developers to reduce the size of new houses has started to address this issue. DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Investment in a Dalton Nicol Reid individually managed account can only be made on completion of all the required documentation. Whilst Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.
December 2013/January 2014 Motor Trader | 29
Travel
MOUNTAIN VENUE A PE M
ERCURE CLEAR MOUNTAIN Lodge, Spa and Vineyard is nestled high up on Clear Mountain and provides the ultimate setting for your next conference, meeting venue or staff gathering. Located just 35 minutes from Brisbane CBD, the drive to Clear Mountain takes you from the hustle and bustle of the city and eases you in to the tranquil surrounds of the Lodge and the breathtaking panoramic views of the countryside. Having been recently refurbished, the Lodge offers modern facilities to accommodate Mercure Carbon Neutral Meetings – an initiative that ensures you will make a difference to the environment by offsetting any carbon emissions produced using the facilities. With fresh mountain air and surrounded by a natural bush environment, at Mercure Clear Mountain Lodge you can remove yourself from the everyday and focus on the task at hand.
30 | Motor Trader December 2013/January 2014
Promising a distraction free and calm setting, the Lodge is well equipped to handle your needs. There are eight modern conference and function rooms for hire which can be configured to suit various size groups up to a maximum of 240 delegates. Breakout rooms can be arranged and the Lodge can assist in arranging team-building activities as well. Standard hire includes note pads, pens, flip charts
“WITH FRESH MOUNTAIN AIR AND
SURROUNDED BY A NATURAL BUSH ENVIRONMENT, AT MERCURE CLEAR MOUNTAIN LODGE YOU CAN REMOVE YOURSELF FROM THE EVERYDAY AND FOCUS ON THE TASK AT HAND.”
ERFECT MEETING SPOT and white boards. Whether you have two staff or 240, Mercure Clear Mountain Lodge will work with you to meet the needs of your event. Reward your staff (and yourself) with a treatment at on-site Stephanie’s Mountain Spa, which has an extensive menu of indulgent services, including a Ladies of Leisure High Tea package. Dotted with twinkling LED lights, the steam room feels like you are sitting on top of the mountain at night. After your treatment relax in one of the Tranquil Lounges with a cup of herbal tea until you feel ready to re-join the real world. If you want to stay the night there are 53 four-star rooms and suites each with a private balcony and panoramic views of Lake Samsonvale, Brisbane city or the bush. All rooms come with full hotel services and room amenities. Your staff can make use of the property’s extra features like the swimming pool, full sized tennis court and low impact fitness room.
Dining options for conferences are versatile, with morning and afternoon tea available as well as working style lunches. Unwind after a day of planning with a glass of champagne on the deck and if you and your staff are staying overnight Mandy’s on the Mountain Restaurant is open to in-house guests and the public. Mandy’s offers stunning views of Brisbane city at night and a menu of delicious meals, some of which are created using produce from the on-site and pesticide free market garden and herb garden. There is also the option of a private dinner for you and your staff if you prefer. A full buffet breakfast is served from 7am daily. The Lodge offers a professional and personalised service when it comes to conferencing. Contact the team of experts today to create an event your staff won’t forget. Mercure Clear Mountain Lodge is located at 564 Clear Mountain Road, Clear Mountain. For more information, visit www.clearmountainlodge.com.au or phone 07 3298 5100.
December 2013/January 2014 Motor Trader | 31
Travel FAMILY SUMMER FUN AT NOVOTEL CAIRNS OASIS
FAMILIES ARE THE summer time focus at Novotel Cairns Oasis Resort with a Family Fun In The Sun stayand-dine package for $160 per night. This price includes accommodation in a superior pool view room, breakfast for two adults and two children and free dinner for children from the kids’ menu when they are dining with adults. There is also a free bottle of Australian wine on arrival and a gift for the children. The resort’s Mizuna Restaurant offers a refreshingly different perspective on modern dining and is now more family friendly, with a Kids Corner which is visible from all tables
Novotel Cairns Oasis Resort
32 | Motor Trader December 2013/January 2014
“LOCATED IN THE HEART OF THE CITY, NOVOTEL CAIRNS OASIS RESORT IS A TRANQUIL PROPERTY AND IS CONVENIENTLY LOCATED JUST A SHORT STROLL FROM THE POPULAR CAIRNS ESPLANADE.” and equipped with a blackboard and toys to ensure children are occupied during breakfast and dinner. Novotel Cairns Oasis Resort also features a large pool with a swim-up bar for adults and a sand beach for kids.
Located in the heart of the city, Novotel Cairns Oasis Resort is a tranquil property and is conveniently located just a short stroll from the popular Cairns Esplanade, the Marina, night markets and Reef Casino and offers easy access to shopping and dining options. The multi award-winning resort has 314 rooms and suites, the Mizuna Restaurant, the casual yet chic ambience of Novo Bar, a gymnasium, familyfriendly facilities and all the services expected from a 4.5 star property. Based on a minimum two-night stay, the Family Fun in the Sun package is valid until March 31, 2014, subject to availability. For bookings or further information call 07 4080 1888 or email stay@ novotelcairnsresort.com.au and quote 'Family Fun in the Sun'. www.novotelcairnsresort.com.au
Industry insight
HOW SUCCESSFUL BUSINESS OWNERS MANAGE MONEY O F THE FIVE key areas involved in running most businesses, i.e. your product/ service, marketing and sales, operations and finance, human resources and customer service, finance is probably the one that brings most businesses undone! Here are some tips from successful businesses that we’ve observed over the years: 1. If Finance isn’t your thing admit it and get a qualified person to look after it for you. As well as a bookkeeper, someone (financial controller/business advisor) who can read reports, explain them to you, highlight the key issues and guide you to use the information to make profit and cash-flow improvements, as well as to avoid problems. It’s not necessary to employ a full timer as there are great out-sourced service providers available to help part time. 2. Invest in a good accounting system – it will save you thousands of dollars in data entry and reconciling time if you get it right, e.g. cloud based, connected to your bank account for automatic bank feeds. 3. Invest in a good operational management system e.g. stock control, job management, point of sale, etc. that links to your accounting system. This will also save you thousands of dollars in avoiding over/under stock, jobs in progress for too long prior to being invoiced. Great examples of this are some of the mobile staff management apps that can really improve time management and minimize travel and non-productive time of key chargeable people. 4. Ensure operational and accounting
systems are set up right from the beginning. Correct opening balances need to be entered. It needs to be set up with your outcome in mind, i.e. what information you want to get out of it to help you run your business more effectively. ‘Change and Project Management’ will need to be considered, i.e. ensuring staff understand the reason for a new system and processes, managing and allocating the resources for a successful implementation. 5. Train people who will be using the systems properly to get maximum value from your investment. It’s a great benefit for staff too, as they learn new skills and feel motivated because they’re part of the improvement process. 6. Understand what information you need to get from your systems to keep abreast of the KPIs (Key Performance Indicators) in your business. Industry Benchmarks can be a great clue about these, or simply consider if you were stuck on a desert island for a few weeks what are the six numbers you would want to know, e.g. weekly sales, bank balance, customer enquiries, quotes issued/won, sales pipeline, staff productivity etc. 7. View the reports regularly and seek help from a professional to act as a ‘sounding board’ and to work with you to develop strategy to improve your results.When reading reports focus attention on percentages, e.g. Gross Profit and Net Profit. These are important to keep an eye on, as they are a quick indicator of changes that need attention. 8. Have a Good understanding of what impacts profit and cash flow, i.e. Sales, Pricing, Costs%, Overheads%,
Accounts Receivable Days, Accounts Payable Days, Inventory Days and WIP Days. Also know your ‘Break-even’ sales and the difference between margin and mark-up. 9. Think ahead and have a Budget and Cash Flow Forecast and understand the difference between them. The budget forecasts profit, whereas the Cash Flow Forecasts deals with money in and out of the business. The best type of budget and cash flow is a ‘Rolling Forecast’, which shows the actuals for the year so far, added to the budget for the rest of the year. That way you will see what your position will be if you meet targets. This allows you to plan for growth and avoid running out of funds. Review them monthly and take corrective action quickly. 10. Use the time saved with good systems to focus on the other areas of business like marketing, sales, operations, customer service, product/service development and staff management. All of the above allows you to sleep well at night knowing you’ve done all you possibly can to be in control of your situation. CFO On-Call is a team of financial and business advisors who work with open-minded people, committed to business growth and achieving success. For help call us on 1300 36 24 36 or visit our website www.CFOonCall.com.au For a FREE copy of our E Book ‘The Seven Key Numbers that drive Profit and Cash Flow’ visit http://cfooncall.com.au/ about/7-key-numbers
December 2013/January 2014 Motor Trader | 33
The indusTry super fund for The auTomoTive indusTry.
www.mtaasuper.com.au motor Trades association of australia superannuation fund pty Ltd (aBn 14 008 650 628, afsL 238 718) is the Trustee of mTaa superannuation fund (aBn 74 559 365 913). you should consider whether or not mTaa super is appropriate for you. The mTaa super product disclosure statement (pds) can be obtained by calling us on 1300 362 415. you should consider the pds in making a decision.