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column | BIC
Boosting the industry
What the 2020-2021 stimulus budget means for bus businesses...
Michael Apps
BIC executive director
PO Box 6171, Kingston ACT 2604 p: 02 6247 5990 f: 02 6273 1035 e: admin@bic.asn.au The Morrison government delivered its 2020–2021 ‘stimulus’ budget for the Australian tax-payer on October 6, 2020. There are mixed reviews from the ‘experts’ and in varying degrees depending on what media outlet you tune into. The various polls are also mixed – Newspoll (Oct 11) claims that 80 per cent of Australians support the income tax cuts for low and middle income earners; the Essential Poll (Oct 6) states that only 25 per cent of voters think the budget will be of benefi t to them.
My bet is, if I was to conduct a bus industry poll, I think there would be reasonable support for this budget, especially the tax breaks for small business – asset write-offs and tax loss ‘carry back’ up to June, 2022, and the signifi cant stimulus being injected into transport infrastructure.
The infrastructure spend is a big one in my view because ultimately the federal government purse is open for business for the states and territories to get going on new and improved road infrastructure. A possible bus rapid transit fi rst in any federal budget that I can think of is the $17.5 million for the Bus Lane Program – Stirling and Canning Highways in Western Australia.
The budget also comes with a $3 billion commitment over two years for two nation-wide infrastructure programs. The Local Roads and Community Infrastructure Program will be extended with another $1 billion over two years for local councils to maintain and deliver local infrastructure. Another program, the Infrastructure Investment – Road Safety and Upgrades Project aims to provide
$2 billion for shovel-ready projects on a fi rst-comefi rst-serve basis where states/territories ready to start will get priority.
BIC has long advocated for the federal government to provide a greater focus through a specifi c funding program available to states, territories and local governments on the ‘low hanging fruit’ improvements across the public transport (PT) network in the form of bus priority infrastructure and smart technology to prioritise bus services on the road.
I have been holding discussions with the Deputy Prime Minister Michael McCormack and
his department since May of this year regarding a number of key projects for road and transport infrastructure – specifi cally bus shovel-ready (smart, sheltered and accessible bus stops), integrated PT mode stations and bus layover and traffi c-light priority projects. I have also taken this agenda to the states and territories, including local government, to keep bus infrastructure in their city planning and new infrastructure or improvements to existing infrastructure. The $1.5 billion put forward in the Modern Manufacturing Strategy is an interesting one. The strategy aims to “to help our manufacturers to scale-up, become more competitive and build more resilient supply chains”. Although vehicle and parts manufacturers are not included specifi cally in the six sectors set to receive the direct benefi t of this scheme, I can say that I do have the attentive ear of all state manufacturing ministers, federal Manufacturing Minister Karen Andrews and Ben Morton, Parliamentary Secretary to the Prime Minister on where bus manufacturing and parts supply/ manufacturing fi ts.
As mentioned in last month’s column, the new energy technology coming out of our sector has become a signifi cant eye-catcher of all state/territory and local governments. Watch this space – the wheel is in forward motion on this one and I will be looking closely at proposed procurement and vehicle replacement programs.
I have long contended that the federal government needs to provide a capital differentiation payment to support state/territory governments in their purchase of low-emission buses. In order for state/territory governments to receive this funding they would have to do one of two things – increase actual public transport bus services or increase the frequency of services by an agreed percentage-amount or invest in recharging infrastructure at bus depots for electric buses, as an example.
The federal budget is a good indicator of the possible investment trajectory longer term. I think the infrastructure and manufacturing commitment are the jobs-and-more-jobs winner, which will need to be sustained long term.
Although I think this budget is defi nitely a green light for business to get busy, it is extremely clear that the economic recovery of Australia and the success of this budget is based on a number of assumptions – unfettered national and international borders, a Covid vaccine being available for mass distribution by December, 2021, and any substantial interim Covid outbreaks likely to affect confi dence of households to spend and businesses to invest and employ people.
Keep safe and well. Stay informed at ozebus.com. au/covid.
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Style and substance
Muirhead’s high-performance leather is key to bus and coach operator success, says head of sales mass transit Kevin Smith.
For bus and coach operators, it is no longer enough to just transport customers in a safe and timely manner. Passengers don’t only expect a hassle-free journey, but also a first-rate experience during it.
Maximum comfort, safety and hygiene, Wi-Fi access and mobile charging, real-time information screens, air conditioning and
CCTV security – all delivered with sustainability in mind – are the minimum expectations for today’s bus or coach traveller. The challenge is to create interiors that deliver the best possible experience at the best value for the operator. Muirhead believes that high-quality, high-performance leather is key to delivering that enhanced passenger experience and feel spotless, but also need to be quick and easy to deep clean when vehicles return to the depot.
We have all seen unsettling videos of fabric seat covers releasing plumes of dust and bacteria when given a firm slap. Muirhead’s high-performance natural leather is easy to clean and, importantly, easy to keep clean long term. A simple wipe with soap and water quickly eradicates dirt and pathogens, ensuring that leather seat covers are always visibly clean and safe. Vehicle turnaround times and associated lost revenues are kept down.
Real leather is naturally flame retardant. Muirhead’s leather exceeds today’s strict regional fire, smoke and toxicity safety regulations for the bus and coach sector without the heavy addition of environmentally
and setting an operator’s service apart.
Muirhead has been manufacturing fine Scottish leather at its own tanneries for over 180 years as a key supplier to the bus, coach, rail, marine and aviation industries in countries from the UK and USA to Europe, Japan, and now Australasia. Muirhead’s leather is taking the passenger experience to the next level, while enabling operators to take full advantage of the value, performance and sustainability benefits it can provide.
SAFETY AND HYGIENE
For bus and coach operators, passenger safety and hygiene are paramount. The coronavirus pandemic has highlighted just how easily pathogens are transferred, meaning all onboard surfaces – such as seats, headrests and armrests – not only need to look, smell
damaging chemicals required by alternative materials during their manufacture, it says.
DURABILITY AND VALUE
Genuine leather is one of the most durable and best performing materials on our planet. The proven longevity and structural stability of real leather, along with its inherent ability to resist and repel stains and fl uids, massively reduces the need for regular repairs and costly refurbishments.
Alongside increased CCTV security, provision of onboard Wi-Fi for entertainment and the inclusion of high-quality materials, vehicles are more likely to be enjoyed and treated with respect. If damage does occur, leather’s inherent ease of cleaning and repair can provide long-term cost savings over a busy vehicle’s working life.
PERFORMANCE AND COMFORT
The southern hemisphere can be a hot and humid climate in which to travel. The more operators and seat manufacturers can do to enhance passenger comfort, the more people will regularly use public transport.
Natural leather breathes, reducing perspiration for a more comfortable experience. Genuine leather maintains its luxury appearance and durability over its long working life and with the ability to perforate and style leather in many different ways, it remains contemporary.
SUSTAINABILITY
Throughout its 180-year history, Muirhead has focused on creating the most sustainable supply chain in the global leather industry, it says. Today, Muirhead produces the lowest carbon intensity leather in the world, it explains.
The company works closely with local farmers to ensure cattle are treated humanely and it only ever uses hides that are a by-product of the meat industry, saving huge volumes from landfi ll. Muirhead’s own waste products become valuable elements in the circular economy and its innovations in energy and water management make it a reliable and environmentally responsible business partner. The company brings substance to any operator’s sustainability messages, it says.
For more detail on Muirhead’s sustainability credentials, visit its dedicated sustainability platform at www.sustainablebynature.co.uk.
BRANDING AND STYLING
As an operator, your brand matters. Muirhead can supply leather in your corporate colours to support your brand and marketing activities. It helps make your vehicle fl eets distinctive and eye-catching.
Muirhead leather can be used to colour-code seats and headrests on specifi c bus and coach routes to make vehicle identifi cation easier for passengers. This attention to detail enhances the customer experience and makes public transport easier to use.
Fashion is fl eeting, but style is forever. You don’t want to replace outdated fabric designs as consumer fashions change. The colours, styling options and fi nishes available in the Muirhead range ensure that the leather you specify will still be ‘in vogue’ at the end of your vehicle’s lifetime, it says.
Passenger expectations will continue to evolve, but one thing is for sure – good enough is no longer good enough. Operators and seat manufacturers must continue to improve customer experiences and Muirhead believes that its genuine leather will enhance both your vehicles and your passenger experience.
MUIRHEAD AND LEFFLER
Unlike many suppliers, Muirhead has no minimum order quantity, so regardless of the scale of your project (headrest, half leather or full leather), it can guarantee supply, it states. The company’s long-term sales and distribution partnership with Melbourne-based leather specialist Leffl er means that stock of its 120+ colour leather range is available for delivery at short lead times.
To fi nd out more about Muirhead’s passenger seating leather range please contact its Melbourne-based distribution partner Leffl er by emailing leffl er@muirhead.co.uk.
Above:
Muirhead produces the lowest carbon intensity leather in the world, it says.
Opposite:
Leather seats mean that a simple wipe with soap and water quickly eradicates dirt and pathogens.
