AustralianBusinessExecutive.com.au - Vol.2 | 2014 by Romulus Rising

A Deeper Look at Business & Government | Vol.2 2014 | AustralianBusinessExecutive.com.au

SPECIAL REPORT

WATER ISSUES

NATIONAL FLEET

New partnership with Yellow Brick Road unveiled

FOCUS ON WESTERN AUSTRALIA Albany Mayor talks the ANZAC Centenary Chevron’s Wheatstone Progress Water Corporation’s Sue Murphy Swan Valley Tours Royal Life Saving Society WA

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EDITOR’S NOTE Welcome to another edition of The Australian Business Executive. Western Australia covers almost a third of Australia, so it makes sense that we provide the area with the coverage it deserves. In this edition, we’ve arranged a piece with WA Premier Colin Barnett who discusses a range of issues. From their government’s overlooked environmental and social agenda, to handling backlogged mining applications and their efforts to remove unnecessary legislation for small business in something they call ‘repeal week’. At a more local level, our WA focus continues with our coverage of Albany including our exclusive with Mayor Dennis Wellington speaking on behalf of the City. Albany has a lot to be proud of, and the Mayor discusses the upcoming ANZAC centenary, its connections with Port Albany and how the Centenary is only the start of a multitude of economic development projects in the area. In our CEO profile, we speak with newly appointed National Fleet Chief, Junies Lim. Only a few years ago she was working in the Malaysian banking sector before making the move to Australia. Seeing an opportunity, she developed a niche product which provided the pathway to her career with National Fleet. She discusses her past and the company’s newly announced partnership with Yellow Brick Road. In our Special Report we’ve partnered with the Academy of Technological Sciences and Engineering (ATSE) to examine water issues. Our coverage looks at the necessity of water recycling for the future and how these modern systems can produce improved water over natural sources. Within our water report we also speak with Water Corporation Chief Sue Murphy. Sue discusses the increase in Private Public Partnerships (PPP) to reduce water use and increase water recycling, and the value the organisation provides to rate payers. Finally, Cardno discusses the work they do in overseas irrigation as part of AusAID. It’s another stacked issue, so get turning those pages!

J. Landry CEO and Publisher

The Australian Business Executive is published by the Esquire Media Group reaching a range of professionals including top executives and senior public servants across Australia. All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in the Australian Business Executive are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration.

Australian Business Executive Vol.2 2014

CONTENTS REGULARS Editor’s Note

News in Review

State by State

Cities and Regions

Western Australia: Looking In On Australia’s Largest State

COVER STORY 14 Colin Barnett Red Tape Eradicator The WA Premier talks about his vision for the second term which includes mining and small business

Albany Mayor Dennis Wellington On the ANZAC

Centenary and the City’s continued growth

COVER STORY Colin Barnett Pg.14

Water Corporation’s Sue Murphy Addressing drought In WA

Chevron’s Wheatstone LNG Project • Wheatstone Project Powers Forward • Generating Local Jobs: Manufacturing And Trades • Major Civil Works Underway At Wheatstone Project Site

Swan Valley Tours Founder Kim Boalch reveals the potential of the region

Albany Mayor Dennis Wellington Pg.19

AustralianBusinessExecutive.com.au

CONTENTS Royal Life Saving Society WA An exclusive with CEO Alex McKenzie

National Fleet In The Hot Seat CEO Junies Lim discusses their new partnership with Yellow Brick Road

Ace Body Corporate Management CEO Stephen Raff talks the necessity for legislation and commissions

National Fleet Pg.38

SPECIAL REPORT

Water Issues We examine the country’s need for new water solutions in the face of a dry climate and population increase

DPR can safely supply drinking water By Stuart Khan

‘Direct’ may be the best way to go By Jurg Keller

Where does Australia stand on drinking water recycling By Ian Law

Cardno Breaking out of Poverty through Irrigation By Ben Miqueu

South Australian Chamber of Mines and Energy Quest for Success. SA is the Country’s Most Favourable Place for Mining Investment By Dayne Eckermann

R.I. Brown Structural Civil Engineers A discussion with Founder Russell Brown on running a successful company for 50 years

Penguin Barb By Wendy Pyper

SPECIAL REPORT Water Issues Pg.47

South Australia Chamber of Mines and Energy Pg.59 5

Australian Business Executive Vol.2 2014

NEWS IN REVIEW Alcoa announces $10 million funding for Geelong & Yennora Alcoa confirmed a $10 million contribution to the Geelong and Yennora communities to help stimulate new jobs and fund training programs in the regions. This follows Alcoa’s announcement in February that it will permanently close its Point Henry smelter and rolling mill in Geelong and its Yennora rolling mill and recycling facility in New South Wales. Alcoa of Australia Managing Director Alan Cransberg said Alcoa was following through on its commitment to support employees at Point Henry and Yennora as they transition through the changes they face this year. “Alcoa has been an integral part of the Geelong and Yennora communities for more than 50 years and all parties have benefitted from this long term relationship. It is important we support them as they transition into a new phase,” Alan said. “By committing substantial funding to the following projects we will help create more jobs as well as equip our employees with the skills and support they need to secure sustainable alternative employment in the region.” $5 million into the Geelong Region Innovation and Investment Fund (GRIIF) GRIIF supports innovative job creation projects that strengthen and diversify Geelong’s regional economy and employment base. These new projects will help the Geelong economy by creating sustainable jobs in the region following the closure of the Point Henry Smelter and Rolling Mill. GRIIF was established by the Australian and Victorian Governments and Ford Australia in response to the announcement that Ford will cease its vehicle and engine manufacturing operations in Australia from October 2016.

new employment. The training package comprises three elements: career transition, which includes one-on-one career counselling; direct sponsored short-term courses, which involves Alcoa-organised training; and financial support for employees to undertake their own accredited training.

ANZ again named Home Lender of the Year by Money magazine ANZ announced it has been named Home Lender of the Year by Money magazine, for the 13th time in 16 years. Commenting on the award, ANZ Australia CEO Philip Chronican said: “We’re very pleased to once again be named Home Lender of the Year. We’re always striving to create the best home loan experience for our customers, who are the real judges. “Buying a home is arguably the most important financial decision most people will make during their lifetime, so as a bank, our role is to make the process simpler for customers. “Since we launched the Banking on Australia program in 2012, we’ve been investing in ways to deliver better outcomes for our customers and we’re very pleased to receive industry recognition of our efforts. “In addition to winning this award, we have had the equal lowest home loan variable interest rate for the past 12 months and we have grown our home loans faster than the market for the past 17 consecutive quarters in a competitive environment,” Mr Chronican said. Money magazine editor Effie Zahos said: “As

$4 million to ongoing skills and training programs for Alcoa employees in Geelong and Yennora Alcoa commenced implementation of these programs immediately after the closure announcement. The funding will ensure this program continues to help Alcoa employees find

ANZ Bank

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NEWS IN REVIEW Australia’s most awarded home lender, ANZ has gone back to basics this year to give customers what they really need in a home loan – competitive rates and great features. “In particular, options such as 100% offset, the ability to redraw and lower discharge and package fees helped ANZ stand out this year,” Ms Zahos said. Money magazine’s Home Lender of the Year award assesses 1,800 home loans from over 100 lenders. The Award is based on a comparison of the cost of a Home loan (including interest rate and fees), and over 200 features of variable, fixed and line of credit home loans.

Australia Post to reduce Headquarters size me loan (including interest rate and fees), and over Australia Post confirmed plans to reduce the size of its headquarters and administration and direct valuable resources to support frontline customer services and initiatives. Under an announced restructure, the Australia Post Group will reorganise around its two key brands: Australia Post: Combining the existing retail and communication management services units, to provide trusted services and solutions for consumers and small businesses both online and through our post office network. Such services will be on behalf of corporations and government; and, StarTrack: Bringing the former Post parcels and express services business under the StarTrack banner to provide ecommerce-driven logistics, supply chain and parcels delivery solutions for local and international businesses and online marketplaces. The two business units will be supported by a leaner administration. Practically, this will mean a net reduction of approximately 900 managerial, administrative and support roles over the next 12 months, with the majority of the losses to come from the head office in Melbourne. While the impact in other states and centres will be small, details are still to be worked through. Employees working in Australia Post’s customerfacing roles, for example posties and retail stores,

Australia Post MD & CEO, Ahmed Fahour will not be impacted. Australia Post Managing Director and CEO Ahmed Fahour said: “Supporting our people through this change is our top priority. I want to reassure all of our employees that we have a strong history of working closely with our people as we implement major change. We have robust, well-established processes to manage these situations respectfully. We will also consult with the appropriate representatives of our employees throughout this process.” Mr Fahour said that while each and every job loss is deeply regrettable, Australia Post has to continue to evolve to remain sustainable in the face of the dramatic impact of a declining letters service and an increasingly competitive parcels market. He said customers were overwhelmingly changing their preferences as indicated by the decline in letter volumes of approximately 30 percent over the last five years. Based on overseas experience, this decline in Australian letter volumes is expected to accelerate to between 8 and 12 percent per annum in the coming years. “Losses in letters are now, for the first time, overwhelming the profits we make in parcels. Furthermore, without postal services reform, the losses in our letters business will reach a billion dollars per annum within a few years. By making these changes now, we can minimise the impact for our people, our broader workforce, our business and the community.”

Australian Business Executive Vol.2 2014

STATE BY STATE construction.”

NSW NSW Has Highest Housing Approvals In A Decade Australian Bureau of Statistic figures released today show housing approvals in the State grew by 58 per cent in March this year compared to March last year, and for the twelve months to March 2014 were at the highest level since 2003. Minister for Planning Pru Goward said that the latest figures show the policies of the NSW Government are working and the State is clearly benefiting from the delivery of new homes.

“Over the 12 months to March 2014 nearly 51,000 new homes were approved in NSW, the highest in almost eleven years”

The ABS statistics reveal: 4,767 new homes were approved in March 2014, compared to 3,017 in March last year 50,976 new homes were approved in NSW in the 12 months to March 2014 Ms Goward said since the Liberal and Nationals Government came to office, monthly approval figures have averaged 3,415 dwellings (April 2011 to March 2014) compared to 2,657 per month on average over the last five years of Labor. “More housing approvals don’t just help new homebuyers; they put downward pressure on house prices across the market. “The NSW Government will continue to drive this upward trend in housing approvals – it’s good for our economy and good for families and young families trying to break into the housing market

TAS Positive Signs For Tasmanian Jobs The latest ABS figures show positive signs for jobs under the Liberal Government.

“Today’s figures also show more than 4,700 new homes were approved in March this year, compared to just less than 3,100 last March,” Ms Goward said.

1,700 new full time jobs have been created since the Liberal Government was elected two months ago, 700 of those in May.

“And from February to March, NSW was the only mainland State to record an increase in housing approvals, bucking the national trend.

The participation rate has also increased to its highest level in three years at 60.9 per cent, which is a sign of renewed confidence in the employment market. The unemployment rate has remained steady at 7.5 per cent.

“These figures are an endorsement of the policies of the NSW Government to support our housing industry, but most importantly they are great news for young families looking to buy their first home, great news for thousands of builders and tradies, and great news for our economy. “We need more homes to keep up with the growing demand of people living in our great State. “Thanks to our strong leadership NSW is driving economic activity for the nation and these figures prove again that we are the driving force in home

NT Red Tape Reduction Cuts $8 Million In Building Costs The trend unemployment rate in the Territory decreased by 0.2 percentage points to 3.3 per cent in May.

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STATE BY STATE This was the lowest trend unemployment rate of the jurisdictions, which ranged from 3.7 per cent in the ACT to 7.5 per cent in Tasmania, and well below the national trend unemployment rate of 5.9 per cent. Treasurer Dave Tollner said Territory’s participation rate in May was 76.2 per cent, the highest of all jurisdictions and well above the national figure of 64.7 per cent. “If you want a job, the Territory is the place to be. The policies and plans of the Country Liberals Government are delivering job opportunities that are the envy of the other states and territories,” Mr Tollner said.

time), while part time employment decreased by 11.2 per cent (-2820 persons employed part time). Mr Tollner said the Giles Government’s recent Budget will continue to deliver jobs and opportunities, particularly through its massive land release program. “We are investing $45 million to accelerate brand new residential suburbs in Holtze and Berrimah Farm and to fast track existing land release in Palmerston East. This will not only make housing more affordable, but it will also create hundreds of jobs in the residential construction sector in years to come,” Mr Tollner said.

Jobs are being created in the Territory economy at the fastest rate in the country. In annual terms, trend employment in the Territory increased by 7.8 per cent to 135,584. This was the highest annual employment growth of the jurisdictions, which ranged from a decline of 1.2 per cent in South Australia to an increase of 2.6 per cent in Queensland.

“Employment growth in the Territory was three times faster than Queensland, the jurisdiction with the nearest jobs creation rate to the Territory” The Territory’s annual increase in trend employment represents an increase of over 9,800 persons employed in the Territory. Mr Tollner said the Territory’s employment rate was being driven by increases in full time employment. “This is particularly satisfying as it indicates that employers have confidence in the economy and its future prospects and are prepared to take on full time staff rather than rely on part time workers.” Trend full time employment in the Territory increased by 12.6 per cent in annual terms (an increase of over 12,600 persons employed full

VIC Red Tape Reduction Cuts $8 Million In Building Costs Demands on commercial builders to take out costly and unnecessary insurance policies will be lifted this month, making Victoria an even more attractive place to build and invest. Minister for Planning Matthew Guy said the mandated requirement for commercial builders to hold structural defects insurance has been an impediment to growing business and development in Victoria. “This was adding around $8 million a year to the cost of doing business in Victoria – a burden that is no longer imposed anywhere else in the country,” Mr Guy said. “Commercial builders and their clients have many policies and processes in place to manage risks, so this costly insurance coverage was rarely ever needed and only added to building expenses. Removing this regulatory burden on the industry will make Victoria an even better place to invest. This will increase our economy’s productivity, creating more jobs and securing ongoing benefits for our community.”

Australian Business Executive Vol.2 2014 The insurance requirement was one of 22 unnecessary regulations earmarked for abolition earlier this year as part of the Victorian Coalition Government’s red tape reduction program. “Cutting red tape encourages business investment in Victoria and the removal of these unnecessary regulations will contribute to more than $715 million in red tape savings for Victorian businesses and the wider economy,” Mr Guy said. “This cut to red tape is in addition to many other productivity-focused planning reforms, including reforms to commercial, residential and rural zoning, a reformed Development Contributions System, introduction of the VicSmart 10-day planning permit process, accelerated infrastructure contributions in growth areas, and the creation of a Metropolitan Planning Authority to implement the comprehensive Plan Melbourne strategy.” Mandatory structural defects insurance requirements for Victoria’s 4,500 commercial builders will be removed on 30 June.

QLD Hollywood Film delivers millions in revenue for Queensland Thousands of Queenslanders are working on Hollywood’s latest blockbuster, San Andreas, being filmed in the state in another boost for the escalating film industry. Arts Minister Ian Walker, who toured the San Andreas set on the Gold Coast, said there were direct benefits to Queensland, in jobs and money, as well as indirect opportunities including the international exposure the films provide.

“People living overseas see the stars here, see the locations and want to visit too” “San Andreas is employing more than 3,000 local crew and actors during the course of production. “The film, which stars Dwayne Johnson, is delivering on our strong plan to grow Queensland’s economy and provide a brighter future.” “It’s a win-win situation not just for the film industry

but the state as a whole” “In 2013-14 there have been two international productions, bringing in $52.2 million to Queensland, including Angelina Jolie’s Unbroken, and Modern Family. San Andreas will bring in significantly more income. “This compares to zero off-shore film investment in the previous financial year. “The indirect benefits include the films buying goods and services from Queensland suppliers, such as transportation, retail, food services and accommodation, and that benefits all Queenslanders. “Local talent, ranging from actors to crew members and all the associated services, also get invaluable experience working for an international production.”

SA Regional Mining And Infrastructure Plan Lays Foundation For Resources Infrastructure Taskforce The SA State Government announced the establishment of a Resources Infrastructure Taskforce to drive infrastructure solutions to support the State’s mining sector. Transport and Infrastructure Minister Stephen Mullighan said the taskforce will work with mining proponents to deliver infrastructure requirements identified in the Regional Mining and Infrastructure Plan. Mr Mullighan also released the plan today, which identifies what future infrastructure is needed to capitalise on the significant economic and social benefits the sector can bring all South Australians. The plan provides a detailed understanding of what our future infrastructure challenges are, and when they need to be resolved. “Central to this State’s continued success is a plan that can guide and increase collaboration within the resources and energy sector,” Mr Mullighan said. “The plan was developed with funding provided by the Federal Government and is underpinned by Deloitte’s analysis of future demand for the State’s mining resources, current capacity and capability of existing infrastructure to meet this demand.

AustralianBusinessExecutive.com.au “The robust and independent analysis of our mining sector clearly shows there is a strong future for mining in SA, but if we are to maximise the benefits to all South Australians we need to have the infrastructure in place to support its growth.

One of Australia’s largest and most significant national parks has undergone a $40million upgrade designed to boost tourism along Western Australia’s south coast and stimulate local businesses.

”What this plan does is identify the need for new ports, logistics, power, and water infrastructure.

Officially opening the new facilities at Fitzgerald River National Park today, Premier Colin Barnett said improved access and visitor facilities would provide significant benefits for surrounding local communities.

“Existing infrastructure will be unable to cope with the scale of forecast production in the future, and given the long lead times it takes to plan and deliver ports, road, rail, electricity and water infrastructure, we need to redouble our efforts to work with industry to address these issues. “We have built a strong partnership between industry and the State Government.

“The park is a major tourism attraction on the south coast and is world renowned for its unique flora and fauna, with more species of native animals found here than in any other reserve in the south of WA,” Mr Barnett said.

“This close collaboration must evolve further to meet the infrastructure challenges of the 21st Century. This plan will act as a compass to guide us on the way to that objective.

“The park’s spectacular and diverse landscapes are a key attraction for tourists and the completion of this major improvement program will allow better access to the spectacular south coast, while offering better protection for the park.

“To create a catalyst for change, a Resources Infrastructure Taskforce is being established”

“A total of $40million was provided by the State and Federal governments to upgrade road access, camping facilities, recreational sites and walking trails. About $30million has been spent on road improvements with 40km of roads reconstructed and sealed, and a further 40km of gravel roads upgraded by the State Government.

“It will function as South Australia’s single point of reference for the resources sector to achieve significant resources infrastructure projects through regional collaboration.” Mineral Resources and Energy Minister Tom Koutsantonis welcomed the establishment of the taskforce and the critical role it will play in providing a greater emphasis on regional – rather than single company – solutions. “Modelling shows if the industry develops as forecast, it would add $22.5 billion in Gross State Product and create an additional 5750 full time jobs by 2023,” Mr Koutsantonis said. “It is critical we take advantage of the once-ina-generation opportunity that we have to create employment, expand the economy and increase our exports.”

“The Fitzgerald River National Park Improvement Project was instigated in 2009 after we reached agreement with the former Federal Government in the wake of BHP Billiton’s decision to close the Ravensthorpe nickel mine. Although the region’s fortunes have changed for the better with the reopening of the mine, the new roads and facilities will serve the community - and the State - well into the future.” Environment Minister Albert Jacob said $10million had been spent on a number of recreation sites within the park. “New visitor facilities including picnic areas, viewing platforms and walk trails have been created at Barrens Beach, Barrens Lookout, Four Mile Beach, East Mount Barren, Point Ann, Hamersley Inlet and Cave Point,” Mr Jacob said. “For the first time in the park’s history, all main recreational sites and campgrounds on the eastern side of the park can now be accessed by a sealed all-weather bitumen arterial road from Hopetoun to Hamersley Inlet.”

$40million upgrade for Fitzgerald River National Park

Australian Business Executive Vol.2 2014

CITIES & REGIONS welcome people visiting the new space.

Adelaide Adelaide Opens New Visitor Information Centre The Adelaide Visitor Information Centre will throw open its doors in James Place today, offering a modern and accessible new home for the service, which is supported by more than fifty Adelaide City Council volunteers. Volunteers will not only be providing helpful information to visitors, but from 10am will be handing out some of Adelaide’s iconic fare including Balfours frog cakes, Charlesworth Nuts, Haighs chocolates, Farmers Union Iced Coffee and some great fresh produce from the Adelaide Central Market. Judy Uren has been a volunteer with the Visitor Information Centre for more than seven years and loves the opportunity to help people plan their stay in Adelaide and its regions. “Our volunteers are a well-travelled bunch and so armed with a welcoming smile and great local and regional knowledge we happily look after the more than 180,000 visitors a year to the centre,” Judy said. “We get millions of people passing through the Rundle Mall precinct every year, and now with the advent of footy in the city, we’re providing information to a whole new audience ahead of the game, especially on weekends. “It’s great to see so many interstate fans wandering into the precinct wearing their footy guernseys and scarves and our new long term home in James Place will make that even easier to help them out. “As a volunteer we get to give advice on how to get around town and some of the fun things you can do in the city before or after the game, and while I’m a Crows fan at heart, I make sure I look after all the fans, no matter what team they barrack for,” Judy said. Acting Lord Mayor, Natasha Malani will be on deck at the Visitor Information Centre early in the day to

“As well as recognising the wealth of information our volunteers possess and the different ways people can source information, we want to mark the opening with a bit of fun, so I’ll be down there to hand out some quintessentially South Australian products,” Natasha said. “The centre is less than 50 metres down James Place from the intersection of Rundle Mall and we’ve installed new signage in the Mall and at the entrance to the laneway to make it easy to find.

“When you visit the centre, there’s lots of ways to find what you’re looking for” “You can speak face to face with one of our volunteers, jump onto an online kiosk and browse at your leisure or pick up brochures and maps from our wide selection – we also have City Guides wandering around the Mall who have iPad technology at their fingertips,” Natasha said. South Australian Tourism Commission Chief Executive Rodney Harrex said the new Visitor Information Centre would be a great resource for visitors to Adelaide and beyond. “Tourism is a big industry and vital to South Australia’s economy, worth $5.1 billion. It is crucial for visitors to have a positive experience right from the start of their trip and I am extremely confident that the knowledgeable volunteers at the new centre will deliver that. “Additionally, once visitors get out to South Australia’s regions, there are in-region Visitor Information Centres well equipped to help visitors make the most of their South Australian holiday,” Mr Harrex said.

Darwin Darwin Streamlines Library Services

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CITIES & REGIONS Life as a library member is set to become a lot easier from today with the launch of Connect NT.

“This is an historic day for Rockdale and its community,” said Rockdale Mayor Shane O’Brien.

Each Council and the individual NT libraries currently run separate membership schemes, meaning customers may need to join several libraries. Under Connect NT the one library membership will be valid across all participating libraries.

“The City Library will provide a state-of-the-art research, study and information space for all our residents.

Darwin Lord Mayor Katrina Fong Lim spoke in support of the scheme. “This initiative is a demonstration of how libraries can work together for the whole Territory community,” the Lord Mayor said. City of Palmerston Mayor Ian Abbott said the new program had been a long time in the making. “Council libraries across the Territory have been working on this for nearly five years and we’re very proud to have brought this to fruition,” Mayor Abbott said. Minister Peter Styles, who joined the Lord Mayor and Mayor for the launch today in Darwin congratulated all involved with Connect NT. “This is a fantastic grass roots initiative to cut red-tape and make life just a little bit easier forTerritorians.”. “On behalf of the Giles Government I applaud everyone involved.”

“When I was elected Mayor I said I wanted to ensure the delivery of our major capital works projects” Rockdale Mayor Shane O’ Brien praised Council staff for their hard work and professionalism in steering the project from concept to fruition and singled out Councillors James McDonald and Joe Awada for their dedication to the project as members of Council’s Library Advisory Committee. “For the past 5 years the vision for the Rockdale City Library has enjoyed support from a very slim but determined majority of Council. Their unwavering commitment has ensured Council’s promise can become a reality,” Mayor Shane O’Brien said. Construction of the new library is expected to start towards the end of the year depending on how quickly a development approval is obtained. “The benefits of the new library for the Rockdale LGA are enormous,” Mayor Shane O’Brien said.

Rockdale City Rockdale City Library Gets the Green Light Rockdale City Council has voted to build the new Rockdale City Library. Sitting proudly beside the heritage Town Hall and the Administration building on the Princes Highway, the Library will complete Rockdale Town Centre’s Civic Heart. Council voted to approve the tender of Kane Constructions for the design and construction of the new Rockdale City Library.

“It will be a vibrant civic hub, combining learning, literacy, arts and culture in the heart of the Rockdale community. The design of this building will also set a benchmark for the rest of the Rockdale CBD.” When the new Council offices were built 30 years ago, the Rockdale Library was temporarily housed in the old Town Hall, where it has remained ever since. The last 30 years have seen many changes in migration, housing density, education and technology. Rockdale City now has a growing migrant population including many residents who don’t speak English at home.

Australian Business Executive Vol.2 2014

COVER STORY

COLIN BARNETT RED TAPE ERADICATOR Western Australiaâ&#x20AC;&#x2122;s Premier talks business, excessive regulation and a bright future for mining

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By Nicky Prouse, CCI Journalist, Adam Duke, CCI External Relations Advisor and Tim Bray, CCI General Manager, Corporate Communications. In our sit-down with Western Australia’s Premier Colin Barnett at Parliament House, there is one point the Premier really wants to make: “What hasn’t been written is the extent in which this Government has had strong agendas on social, environment, education and health which often get overlooked,” said Mr Barnett. “This not like any previous Liberal Government. We have a strong environmental and social agenda. We have contributed $600 million to community-based organisations, which is unprecedented not only in this State, but in Australia. I challenge you to find a Labor Government that has had such a strong social agenda.” It’s this legacy that seems to drive the Premier, who also points out that he believes the broader business community may have partially misunderstood the Government’s actions. “I think sometimes the business community doesn’t look at the bigger picture or look at what has already been done or is currently underway,” Mr Barnett said. “If you look at what this Government has done, we’ve had great success in Asia, we have big projects underway including Wheatstone, Gorgon and Ord River, we have a $35 billion per year budget, employ over 150,000 people, over

100 business organisations... Government is a difficult job and I think people and business can underestimate that. “I acknowledge what business would say about red tape, regulation and the like, but business should recognise that this Government has done an enormous amount. We have gone through a backlog of 16,000 mining applications, we have made fundamental changes to reform and to streamline processes by putting applications online.” Mr Barnett points to his Government’s work to settle large a number of claims of native title on the land and is about to settle a huge area in the South West of the State. While this has cost the Government and taxpayers financially, it was designed to take regulatory delays off business with planning and mining applications. The State Government also has what it calls ‘repeal week’ once a year when it gets rid of any unnecessary acts of Parliament that have been there for years, obstructing business operations. Mr Barnett’s message is clear to businesses on this issue – give us specific examples of what regulations unduly hold your business back. Mr Barnett, however, doesn’t claim that he, or indeed the Liberal party, are perfect and he does acknowledge areas for improvement, but of course is quick to point out some of the party’s better qualities. “What people overlook when they look at this Government is that we had a remarkable election victory in 2008 when we won 10 seats off Labor,

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“I really don’t think people in the business community would want us to slow down on the infrastructure expenditure”

then an equally remarkable second election when we held onto all of these seats and won another five while the Nationals picked up one,” Mr Barnett said. “Politics is an unusual experience. Most of our Members of Parliament are new and in their first or second term. They are the future leaders of this State and looking to the future after I am no longer Premier, it’s good to know that we have good people coming through. “There has been speculation that I make all the decisions, but that’s not true. As Premier, my job is to lead the Government and guide Ministers and I spend a lot of time doing that. A good Minister’s job is to make decisions on good advice - those that don’t do well fall into the detail. During the election campaign and in the early parts of the Government’s second term, speculation continues about whether the Premier will still be leading his party to the next election. Mr Barnett says that is not his focus and he will address that a year out from the election. “We are only six months into a four year term and I am concentrating on the job at hand,” he said. Mr Barnett’s focus right now is on continuing to lead a State that has grown remarkably over the last decade with people moving into WA and placing greater strain on infrastructure and pressure on the State’s budget. With that in mind, the Premier acknowledges the recent loss of the AAA Credit Rating from Standard

and Poor’s points to the fact decisions will need to be made. “The AAA Credit Rating is a political issue, but I don’t think it’s a financial crisis,” said Mr Barnett. “It’s a matter of State pride to get it back. We obviously can’t allow debt to grow at that rate, so we will curtail some projects, maybe push some out in time, sell some assets and restrain some current spending, but there is no sense of crisis in the Government at all. This hasn’t come from any flamboyant business deal - it is simply from bettering the State.” Mr Barnett does concede that the Government may have bitten off a little more than it could chew in one go with massive ongoing infrastructure investment, but sees the growth of Western Australia as a positive for the business community. That includes regional areas, such as the Pilbara. “I really don’t think people in the business community would want us to slow down on the infrastructure expenditure,” added Mr Barnett. “The WA population is growing by 800,000 people per year and that puts enormous pressure on the major areas of Government spending - education and health. We are hopeful the Abbott Government will address the Federal spending in our State, which will free up some State Government money to be used on other projects.” Despite the reported drop in confidence of both consumers and business, according to Mr Barnett, a growing WA population brings with it a larger

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economy, more employment, higher wages and greater consumer spending, which in turn profits WA small to medium businesses with consumers spending big on housing, retail and entertainment. The Premier doesn’t prescribe to the language and commentary that the WA resources boom has peaked. “I think people have to step back and look at what is really happening. I think the national media commentary is often quite shallow and turns it into a joke,” said Mr Barnett. “The very nature of the WA economy is that it is very jagged. With the resources boom, we had a peak and suggesting that we are going into a production phase is just wrong. There is an enormous amount of commercial activity going on in the resource sector and in the city. “I think we will see major sectors like iron ore and petroleum mature in the next couple of decades and this will be one of the golden decades for WA. A successful economy is externally and internationally oriented and the Western Australian economy has expanded significantly with links to Asia that other States just don’t have. “We are leveraging off these relationships, especially in the resource and agricultural industries. We have extraordinary Government to Government relationships and this will flow onto business. The business community needs to take advantage of these relationships and it will only get easier for them in future,” Mr Barnett continued. “With China, the big issue is about food security

and safety and we have a golden opportunity to make it work for us.” Energy is again on the agenda, with the Government’s legislation to remerge the two Government energy wholesale and retail arms, Verve and Synergy. The question for investors and consumers is what comes after this merger? “I think the reform is continuing and the market is complicated,” said Mr Barnett. “Energy investments have cost the taxpayer a fortune and it’s not affordable for the State to be cross subsidising electricity producers. Small business and households will be affected.” So, with such a tough job in the spotlight and under continuous scrutiny, how does one deal with such pressure? “I have a big job, a complex job and it’s controversial - you can be under attack all of the time,” said Mr Barnett. “I’m very fortunate that I don’t have trouble switching off. Some people can’t do that and it makes it difficult. I’m busy - I am doing things most days of the week, but I walk my dogs in the morning - that’s my thinking time. My wife Lyn and I have a farm at Toodyay where we get away to and I play tennis with friends over the summer and go to the beach.” With a recently-elected second-term Government and testing budget circumstances, that thinking time will be needed to determine the as yet undecided legacy of the second-term Barnett Government.

CITY OF ALBANY

Uncovering Albany, WA â&#x20AC;&#x201C; Mayor Dennis Wellington on opportunity, growth and the ANZAC Centenary

Australian Business Executive Vol.2 2014 which is the November Anzac Centenary. Anzac Albany On November 1 1914, thousands of Australian and New Zealand troops departed Albany for the First World War. For many, it was the last time they saw Australian soil. Significant resources from all levels of government have been put towards appropriately commemorating the Anzac Centenary in Albany: the birthplace of the Anzac story, and the site of the first ever Anzac service, conducted by Padre White. All eyes will be on Albany for the Anzac Centenary. A range of significant commemorative events are planned between October 30 and November 2, many of which will be televised nationally by ABC.

Mayor Dennis Wellington Albany, located on the south coast of Western Australia less than 4 hours from Perth’s southern suburbs, is a picturesque and historic City about to come into its own. Home to a growing population of 35,000 community-conscious residents, the City of Albany aims to be WA’s most sought after place to live, work and visit – a vision which grows closer to reality every day. Albany – WA’s oldest European settlement – has long been a popular tourism destination, but its stunning scenery, incredible food and wine; and sunny, mild climate are just the start of the story. 2014 is a watershed year for the City of Albany. A range of major developments, opportunities and events are in the immediate pipeline – not least of

National ANZAC Centre concept 20

The event program will include a symbolic departure of naval ships, a troop march and major community concert, among a wealth of other highlights, which are detailed at www.anzacalbany. com.au. Perhaps the most important event will be the official opening of the $10 million National Anzac Centre, a nationally significant and lasting memorial to the ANZACs. The centre will sit overlooking King George Sound within the rejuvenated Princess Royal Fortress, an historic gun battery built in the 1800s to defend the nation from feared Russian raids. Albany Mayor Dennis Wellington said the National Anzac Centre would be the centrepiece of a heritage precinct destined to be the envy of the country. “Our aim is to leverage the Anzac Centenary into providing major economic benefits for Albany, not

National ANZAC Centre

Australian Business Executive Vol.2 2014 just for the four-day period this year, but for the whole 2014-18 period and well beyond that,” he said. “We believe heritage tourism has the potential to play a major role in our identity and economy.” In addition to the NAC, a major $6 million upgrade of Albany’s Anzac Day memorial area has been completed, doubling crowd capacity and providing major aesthetic benefits. Albany’s CBD will also be revamped, including a brand-new Town Square, and an upgrade of historic Stirling Terrace. Major events Looking beyond the Anzac Centenary, Mr Wellington said there was strong potential for the City to be able capitalise on its newly elevated profile to attract more major events, such as the 2013-2014 Clipper Round the World Yacht Race, which Albany hosted in November and December last year. The unique and high-profile race placed international attention on Albany, and provided a welcome economic boost to the region. A hub for science and technology

When the ANZACs left our shores, we proudly kept the lights on for them. This year marks the centenary of the First Fleet leaving Albany’s shores for Gallipoli. To remember the sacriﬁce the ANZACs made for our country, Albany is hosting a special event 30 Oct – 2 Nov. As we’ve been delivering electricity to the Great Southern region for over 100 years, we’re honoured to play our role in helping to organise this special event and in supporting the continued growth of this community we call home. To learn more, visit anzacalbany.com.au

westernpower.com.au

One of the more exciting new initiatives to arise in recent months is the “Albany Innovation Park”, a concept tied to the vision of Albany as regional hub for science and higher education. The Innovation Park concept seeks to create a major business park in Albany based around science and technology research companies. Mr Wellington said the concept was gaining traction as a major potential economic driver for Albany and the Great Southern region. “It’s certainly still early days at the moment, but the idea really seems to be getting a lot of support,” he said. “It makes a lot of sense, and would fit extremely well with another of our long-term objectives, which is a major expansion of our tertiary education sector.” Mr Wellington said Albany was already home to a campus of the University of Western Australia, the state’s most prestigious university, but course offerings and student numbers were fairly limited. “What we would love to see happen eventually is for Albany to become a major university city, and

22 POW0104-3.65x11"(92.71x254) ANZAC col press.indd 1

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Centennial Park

“What we would love to see happen eventually is for Albany to become a major university city, and a major regional hub for science and education” a major regional hub for science and education,” he said. Green energy, big business Linked to Albany’s higher education aspirations is its reputation as a focal point for the renewable energy industry. Albany is already home to a massive – and strikingly beautiful – 18 turbine wind farm, which sits atop grand cliffs overlooking the Southern Ocean and has (almost inadvertently) turned into one of the region’s most popular tourist attractions – while also generating the equivalent of 80 per cent of Albany’s energy needs. Promising renewable energy company Carnegie Wave Energy has expressed strong interest in harnessing the fearsome power of the Southern Ocean in an area adjacent to the wind farm, following its current commercial demonstration project in Perth. Mr Wellington sees no reason why Albany couldn’t be the green business capital of Australia. A premier beachside destination The WA State Government recently announced an

official “Improvement Plan” for one of WA’s most iconic locations: Middleton Beach, paving the way for a major revitalisation of the area. A large beachfront block, once home to the famous Esplanade Hotel, has lay vacant since 2007, and the lack of development by the site’s offshore owners has long been a thorn in the side of locals and visitors alike. The State Government has entered into negotiations to purchase the site, and has stated the Improvement Plan provides authority for the site to be acquired compulsorily if those negotiations are unsuccessful. While it’s early days yet, signs are very positive an outcome will soon be reached for what holds potential to once more be WA’s most beautiful beachside precinct. On the waterfront Development at the spectacular Albany’s waterfront precinct on the edge of Princess Royal Harbour have moved ahead in leaps and bounds since the completion of the world-class $70 million Albany Entertainment Centre in late 2010. A large tavern/restaurant, “Due South”, is currently under construction adjacent to the entertainment centre and is expected to add a new dimension to the district. Even more significant will be an announcement from the WA State Government – expected imminently – regarding a major hotel development on the waterfront. Once approved by Cabinet the

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Albany Wind Farm hotel will provide a welcome boost to Albany’s accommodation capacity in the long-term. A regional sport and recreation centre The $26 million-plus Centennial Park Sporting Precinct project aims to create the Great Southern’s premier shared sporting precinct, encompassing a huge area close to the city’s centre. Grand in scope and ambition, the project aims to deliver a major new sports stadium, a wealth of new amateur playing fields, new public shared parkland and major aesthetic improvements, among many other features.

Proud owner of the Albany Wind Farm

Improved air services Albany’s airport – which is now serviced by Virgin Australia Regional Airlines – received a major upgrade to its security services and terminal last year. Runway upgrades were completed in April this year as the next stage of this project, which will grant the airport the ability to handle jet aircraft. This will not only benefit the tourist trade, but will assist Albany’s burgeoning FIFO market direct to the State’s north. Rio Tinto already operates direct FIFO flights from

The Albany Wind Farm plays a key role in generating electricity for Synergy - WA’s largest energy provider to more than one million customers. The Albany Wind Farm supplies about 80 per cent of the town’s annual electricity needs. Synergy is a proud member of the Albany community.

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“The opportunities here are many and varied. It’s up to us to grasp them, and that’s exactly what we’re doing” Albany to the Pilbara. Planning for the future The City of Albany also recently welcomed State Government approval of the long-awaited Local Planning Scheme 1, which will replace two separate and outdated schemes and provide a new level of clarity for planning matters both large and small. Albany Mayor Dennis Wellington said the approval of LPS1 was essentially the final stage of the 1998 amalgamation of the old Town of Albany and Shire of Albany. Mr Wellington said since amalgamation, the City of Albany had been operating with two separate and sometimes competing schemes which often made planning matters inconsistent and confusing. “LPS1 is an excellent contemporary planning scheme which will finally provide a clear and

Padre White Lookout consistent set of rules for planning matters across the whole of the City of Albany.” Meeting Health Needs The State Government has spent $170 million on a brand new, state of the art hospital which has provided a significant boost to the region’s health services. Albany Health Campus opened its doors in April 2013, and is serving the broader region as well as Albany residents. Future opportunities According to Mr Wellington, Albany is on the cusp of achieving great things, led by the City of Albany and its optimistic and dedicated team of Councillors supported by a highly capable workforce. “The opportunities here are many and varied. It’s up to us to grasp them, and that’s exactly what we’re doing,” he said.

Australian Business Executive Vol.2 2014

Addressing Drought In WA an exclusive with Water Corporation CEO Sue Murphy By J. Landry As part of our Special Report on water issues, The Australian Business Executive conducted an interview with Water Corporation CEO Sue Murphy. In this exclusive, Sue discusses delivering value for the people of Western Australia, tackling drought with the use of desalination and the use of public-private partnerships (PPP).

J. Landry: Can you explain what climate change means to drought issues in WA?

JL: What are the main tenants the ten year plan to drought proof Perth by 2022?

Sue Murphy: “In WA we no longer talk about drought. We have seen such a dramatic climate shift over the last twenty years that we talk only of climate resilience!”

SM: We believe we have successfully moved Perth’s water supply away from a reliance on dams through a three pronged approach that includes developing new sources, reducing water use and increasing water recycling. This is an ongoing challenge that will require continued work over the coming years as we continue to adapt to the changing climate.

Historically Perth’s dams produced about 350GL per annum – and the Perth scheme uses about 300 billion litres a year – so that was a balanced system. Our average runoff into our dams over the last decade is less than 50 billion litres a year – one sixth of historical inflows. This is due to a combination of less rainfall and changes to rainfall timing but this dramatic reduction has meant a fundamental move away from “praying for rain” as our core strategy! Up to the 1970s, the dams that supplied water to customers connected to the Integrated Water Supply Scheme* (IWSS) received about 350 billion litres of inflow each year. As our climate dries, runoff has dropped to less than one sixth of that received historically. In the early 2000’s we began to consider the possibility that we could no longer rely on rainfall for Perth water supplies. Last year, Perth’s dams only received 80.5 billion litres of inflow. To put this into perspective – we supply around 300 billion litres of water to customers connected to the IWSS, so this is less than a third of what our customers use. *Note: The Integrated Water Supply Scheme provides drinking water for nearly 1.9 million customers in Perth, Mandurah, parts of the South West, and those connected to the Goldfields pipeline.

Reducing Water Use Over the last 10 years our Perth customers have reduced their per person water use from 191,000 litres to 132,000 litres last financial year. We continue to work with our business and industrial customers to help reduce their water use. Last year we saved over 100 billion litres of water in Perth through a range of water efficiency initiatives introduced over the last decade. In broad terms – over the last decade or so, Perth’s population has grown by a third yet we provided 8 per cent less water in total to Perth last year than a decade ago. Develop new sources Our two seawater desalination plants can provide up to 145 billion litres of water each year. In 2013 the state government announced that Perth’s next water source would be ground water replenishment. This means that highly treated wastewater will be injected into our deep aquifers for potable use in the future.

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Welder inside a pipe

“Seawater desalination is the cornerstone of the water supply to the IWSS and currently can supply up to 50 per cent of our needs.” Such schemes have been politically sensitive in other states but here in WA both sides of politics understand that our climate is drying and we have enjoyed bipartisan and mature support for this plan. Work on the first stage of the full-scale groundwater replenishment scheme will begin later this year. The first stage of this project will provide at least 7 billion litres of water a year which can be expanded to 28 billion litres of each year as needed. Ultimately, groundwater replenishment could supply up to 20 per cent of Perth’s drinking water needs by 2060. Increasing water recycling Over the last 10 years the volume of recycled wastewater has increased by almost 75 per cent across the State. In Perth, this includes groundwater replenishment, irrigation of parks and ovals with recycled water and providing fit-for-purpose water for industrial use at the Kwinana Water Recycling Plant. JL: How will the role of desalination adapt in future when it comes to water shortage? SM: Seawater desalination is the cornerstone of the

water supply to the IWSS and currently can supply up to 50 per cent of our needs. That said, the work of our customers to reduce their water use has also been pivotal – over the last decade water saving efforts have contributed to 100 billion litres of water saved each year. Seawater desalination has the capacity to produce 145 billion litres of water to the IWSS, providing a secure climate-independent water source for our customers. Desalination will remain an important part of Perth’s water supply into the future, however, it is just one part of achieving climate resilience, along with reducing water use and recycling more water. JL: Desalination is often considered costly, can you explain the cost v. benefits of using such technology? SM: Whilst desalination uses more energy than traditional water sources, such as gravity feeding water out of a dam it is still only a modest component of our daily energy use. To put this into perspective, to desalinate all the water needed for an average Perth family for a day would take about 2KWhr of energy. That is the same as running an average air-conditioner for 45 minutes or using a hairdryer for an hour. We make choices daily as to how we want to use energy so desalination which provides a secure, climate-independent water source, seems to me to be a sensible option. JL: Please tell us about the current desalination plants in WA?

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The Southern seawater desalination plant in Binningup SM: The Perth Seawater Desalination Plant in Kwinana was opened in November 2006 and has delivered more than its nameplate capacity of 45 billion litres of drinking water to the IWSS each year. The Southern Seawater Desalination Plant in Binningup was completed in 2013 and can deliver up to 100 billion litres of drinking water to the IWSS each year. JL: With public private partnerships (PPP) becoming more common, where do you think economic opportunities for business will arise in the coming years? SM: The Mundaring Water Treatment Plant was the first project to be funded, designed and built through a Public Private Partnership (PPP) in WAâ&#x20AC;&#x2122;s water industry. The private partners brought a wide range of global experience in delivering water projects around the world, and an extensive track record in developing and operating Public Private Partnerships. This includes expertise from Australia, UK, Japan, Spain, Canada, France and Germany â&#x20AC;&#x201C; so this project really draws on world-wide water industry expertise. Public Private Partnerships will not suit every aspect of our business but it is another model available to the Water Corporation to deliver the most efficient services possible to its customers. JL: As a publicly owned utility, how is water priced, and how do address annual cost increases?

SM: Water Corporation prices are set by the State Government of Western Australia. That said, we continue to work with our customers to help reduce their water use, and in turn their water bills, through a number of programs and initiatives. This includes two-monthly billing and our self-service website, My Water. We began billing and reading meters every two months in July 2013 to make payment more manageable for customers by spreading annual costs across six bills, instead of larger accounts distributed less often. Issuing smaller, more manageable bills more frequently will also allow customers to track their water use, detect leaks earlier and assess their water efficiency efforts sooner. My Water is our online portal which allows customers to view and pay their bills online, update personal details, view water use, set up direct debits from their bank account or credit card and arrange for paperless billing. This allows customers to view their water use at least every two months and take control of their consumption. We were pleased to see that the recently released National Water Commission Benchmarking report showed that our operating costs per connection are the lowest of any capital city in the country. JL: How do you deliver financial accountability for the people of WA? SM: We continually look for ways to provide the most efficient service we can, to ensure we

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“We continually look for ways to provide the most efficient service we can, to ensure we are delivering the best valuefor-money for our customers across the state. “ are delivering the best value-for-money for our customers across the state. The Water Corporation has been on a threefold journey of reform over recent years. This involves reform of our water security, operations and customer relationships. Operational reform required two separate but complementary strategies for our business. The metropolitan area has large and complex water and wastewater schemes while our regional operations involve multiple small schemes spread across our sprawling state.

Mundaring water treatment plant

Two new alliances handle all of our metropolitan system operations and maintenance. These alliances, through integration and streamlining, have already achieved significant improvements to our service and business efficiency which result in real ongoing value to our customers.

About Sue Murphy

Our regional reform project, Building a Better Business, launched initially in the South West, has achieved efficiencies in administration, work scheduling and other areas. It is now being introduced in all other regions where similar successes are expected.

Water Corporation Chairman Eva Skira said Mrs Murphy thoroughly deserved the honour and was among a cohort of high calibre Water Corporation engineers who had served the people of WA very well over many years.

We have achieved further efficiencies and cost savings through reforms of our central support functions, including procurement and management of revenue-earning land and property holdings.

In 2013, Sue Murphy was awarded Australia’s 2013 top civil engineer.

“She has had an outstanding career, and most recently has been steering planning to secure adequate water and wastewater services in Western Australia for the next 50 years,” she said. “Sue is very active in Australian and international water industry affairs, including in her role as past Chair of the Water Services Association of Australia.” Sue graduated as a Civil Engineer from the University of Western Australia in 1979.

The advanced water recycling plant where the groundwater replenishment trial took place

After winning a Clough Scholarship as an undergraduate, she joined Clough Engineering in 1980 in what would be a 25 year career with the company. Sue joined Water Corporation in 2004 and was appointed CEO in November 2008.

CHEVRON

Wheatstone Project Powers Forward

Major civil works underway at Wheatstone site Train 1, with construction manager Damien Evans

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It has now been two years since the Wheatstone Project announced a final investment decision in September 2011 and the initial focus on building roads, accommodation for workers and provision of water facilities has paid off. Attention is now turning to laying the first permanent foundations at the LNG plant site. Chevron Australia Wheatstone Project General Manager Eric Dunning said the $29 billion natural gas project, at Ashburton North, in Western Australia, had reached a number of key achievements, including three million man hours without a lost time injury onsite. “As project activities ramp up and more contractors mobilise to Ashburton North, it is pleasing that teams across the project are living and maintaining our safety values,” he said. “Protecting people and the environment is a key value at Chevron.”

Growing workforce Ashburton North is now home to more than 3,000 workers, representing 145 contractor and subcontractor companies alike – each committed to delivering their respective work scopes across the project. By the end of 2013, the onsite Wheatstone workforce is expected to increase to more than 4,000.

Construction Activities

Site preparation for the LNG plant is progressing, with piling works by Australian contractor Frankipile well underway to install approximately 23,000 piles for the LNG plant foundations. A joint venture between Thiess and EV LNG Australia has commenced works on the two LNG storage tanks and two condensate storage tanks onsite. In August, the first meal at the Construction Village kitchen and west dining facility, constructed by John Holland, was served. When the eastern package is complete, the diner will be able to seat 2,500 people at one time.

Marine Scope Offshore dredging works began in April in order to construct supporting marine infrastructure for the LNG plant, including a Materials Offloading Facility, turning basin and navigation channel. BAM Clough JV also mobilised to site to begin construction of the Product Loading Facility. Subsequently, the Company has completed a Stage 3 expansion and is now producing at a 5.2Mlb per annum rate. An additional Stage 4 expansion review is currently nearing finalisation with the view to potentially increase production up to 10Mlb per Preparations are underway to install the 225-kilometre trunk line, which will connect the offshore processing platform to the onshore facilities at Ashburton North. The first stages of micro-tunnelling also began in August — a process which will avoid environmentally sensitive areas by tunnelling underground and joining with the offshore trunkline.

ATCO’s new 14000m2 manufacturing facility in Kwinana is now under construction. 31

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Generating Local Jobs Manufacturing and Trades A major contract to design, manufacture and install more than 300 modular units for the Wheatstone Project has already created more than 100 new jobs. ATCO Structures & Logistics Australia recently secured the contract, valued at an estimated $100 million, which will require engineering, plumbing, carpentry, electrical trades, general labouring and administrative positions. The 137 new jobs already created include 42 manufacturing jobs in Perth and Brisbane and an additional 95 jobs based onsite at Ashburton North. The modular units will become offices, training centres, IT buildings, guardhouses and medical centres. ATCO Structures & Logistics Australia Managing Director Adam Beattie said the units would be built at the company’s new manufacturing facilities in Kwinana, Western Australia and in Queensland. “We are pleased to support local industry and look forward to the opening of our new Kwinana manufacturing facility later this year,” Beattie said. “While the facility was commissioned prior to the Wheatstone contract, the first units to be produced there will be specifically for Wheatstone and that is significant for the company.” Former Federal Resources Minister Gary Gray said it was great to see a local company getting significant fabrication contracts in the resources sector. “There is nothing more important than getting people into work, which is why it is so fantastic when new opportunities like this come along,” Mr Gray said. Manufacturing work is expected to begin in October.

Delivering Solid Foundations Major Civil Works Underway at Wheatstone Project Site Wheatstone Project sub-contractor Laing O’Rourke recently mobilised to Ashburton North – to deliver more than half a billion dollars’ worth of civil works and concreting – encompassing more than 700 Australian jobs. An initial team of 34 Laing O’Rourke employees has begun preliminary work on the $500 million scope with lead downstream contractor, Bechtel.

“Added to that is our proud Western Australian heritage, and in particular our connection to the Pilbara, where we have decades of experience.”

Laing O’Rourke will build the structures and foundations needed to support the massive equipment modules and compression machinery at the LNG plant site, as well as laying the foundations for the utilities area.

“We’ll be concentrating on the site office foundation work and general site facilities first to make sure there are no delays,” Laing O’Rourke Site Manager Nathan Swanson said.

Laing O’Rourke Project Director Tim Kelly said the team had been looking forward to getting to work on one of Australia’s largest resource projects. “We spent a lot of time in the pre-mobilisation phase ensuring everything is in place to deliver our contracts safely and on time,” Mr Kelly said. “We’ve got a fantastic team on board to deliver the safest and highest quality work for Wheatstone.

By March next year, the Laing O’Rourke team will ramp up to around 700 workers. Chevron Australia Wheatstone Project Director Chris Miller said he was pleased to see another key milestone achieved with the mobilisation of Laing O’Rourke employees to site. “This contract is another example of the Wheatstone Project providing major employment opportunities for Australians,” he said.

SWAN VALLEY TOURS From regional startup to New York sensation

Since starting as a niche tour operator in 2001, Swan Valley Tours has grown to become a key player in the Perth regionâ&#x20AC;&#x2122;s wine tourism market. Along the way, the company has received numerous awards and was even recommended by The New York Times. The Australian Business Executive spoke with Managing Director Kim Boalch to get her take on why interest in the region is booming.

Australian Business Executive Vol.2 2014 KB: The biggest event that affected not only my business but all tourism and hospitality businesses at the time was the terrorist attacks of Sept 11, 2001 and the Ansett Airlines closure the following day. This dried up virtually all interstate and international travel. So I had needed to look at the local market, which was virtually untapped at that time. I heard so often from locals that they had lived here all their lives and would happily spend the 3 ½ hours to go down to Margaret River for the weekend but had never considered going to the Swan Valley. So I used the fact that the Swan Valley was only thirty minutes away from your first drink when approaching businesses for their next team building or social club function. ABE: What are some of the lessons you’ve learned as a small business operator?

MD, Kim Boalch Australian Business Executive: Can you tell us about your background? Kim Boalch: I had completed a Bachelor of Cultural Heritage in 1999 which was very interesting but unfortunately found the work available from that was piecemeal and frankly boring. So after a lot of consideration and research I decided to start Australian Heritage Tours in 2001. There were a number of tour operators at that time but I felt there was gap in the market for a tour that included a more in-depth look at our cultural background. ABE: What was the inspiration behind starting Swan Valley Tours? KB: I choose to specialise in the Swan Valley area as it has a lot of history and it’s an easy distance from Perth. It is the second oldest wine growing region in Australia and has the oldest winery, hotel and church in WA. It also has a rich cultural mix of immigrants that helped shape the character of the area. Unfortunately it was a very slow start and a very steep learning curve. For a long time I had small numbers, often just a couple of people, to share my interest with. It didn’t take long to realise that heritage and history is a very niche market for Perth. There was interest in the Swan Valley but people were asking for wineries (not history) so I had to go with the market and change direction. I changed the name of the company to Swan Valley Tours and became focused on a food/wine experience with an incorporated commentary of the historic/cultural background of the area. ABE: What events have shaped the direction of the business?

KB: Be flexible and reliable. I would always say yes to a request then work out how to do it. When my coach wasn’t available or not big enough for a job I would subcontract one so I wasn’t turning work away. I also wanted to make sure I had a good reputation with agents and hotels, so I would commit to running a tour with small numbers even if it was at a loss so they knew I wouldn’t cancel last minute on them. These days it’s easier with six tours running daily, so if one particular tour didn’t have the numbers there is generally an alternative tour to offer. ABE: Can you discuss the region as a tourist destination? KB: The Swan Valley has definitely evolved as a tourist destination over the last decade. Initially there were just a few venues that knew how to cater to visitors in large numbers, namely Houghton Winery and Sandalford Winery. I noticed things started to change when the City of Swan opened the Swan Valley Visitor Centre in Guildford and the Margaret River Chocolate Company opened a store in the Swan Valley. Both these events happened circa 2001. This marked the beginnings of the region becoming more focused on tourism and the visitor experience. At the same time, wine tourism was developing its own niche market. ABE: What does the Swan Valley area offer that’s different to other areas of the country? KB: The Swan Valley’s advantage to most other areas in the state is its proximity to the Perth CBD. It is just a thirty minute drive away and an easy circuit to do with venues close to each other. So people can get into a lovely rural setting easily and still get back to where they are staying in a

AustralianBusinessExecutive.com.au reasonable time. The main difference between Margaret River and the Swan Valley as a wine region is the wineries in the Swan Valley tend to be smaller boutique wineries often family owned and operated. So you are often talking to the wine maker whilst trying their wines. And the only place you can buy the wines is at the cellar door itself as they don’t supply to the bottle shops. ABE: What is the difference between targeting the domestic tourism market compared to the international market? KB: The domestic market tends to know and like their wines. They are happy to try a range of styles and try different venues they may not be familiar with. They tend to use the tours for social occasions. The international market is varied so it does depend on where they come from. Those from the ‘Anglosphere’ ie, UK, USA, NZ, are similar to the Australians with wine appreciation and knowledge. Those from Asian backgrounds are not big wine drinkers and are more interested in the nature and beauty of the region. They also enjoy more of the food tastings and seeing native animals, so we tend to cater for this with a different package that is more food and experience orientated. ABE: Take us through the tours you offer and services to the corporate sector.

KB: We operate six tours daily with both full day and half day options and coach/cruise options. These are what we call public tours as they are for the individual/couples/small groups who join in with others booked on the same tour, and they do the itinerary we provide them. For the corporate sector we offer private charters. These are more flexible and we work with the organiser to tailor a specific package to suit individual requirements. ABE: There a few tour operators in the area, what makes Swan Valley Tours different? KB: There are a lot of operators who offer a bus service but we offer the complete package. We organise the itinerary, book in the venues, and pay all the fees. We charge a per head price so people know exactly what the cost is and there are no extra charges on the day. This is especially important to the organiser who can leave the details to us. Also, our driver/guides are professional, knowledgeable and courteous. They look after all aspects of the tour on the day to ensure the group has the best possible experience without the organiser having to do a thing. They don’t have the stress of making sure everything runs smoothly. ABE: You’ve received some noteworthy recognition and awards. Care to tell us about them? KB: We are very proud of the awards we have received over the years. We have been the winner of the Hanson Swan Business Awards for Tourism in 2012 and 2013, and a Finalist in 2011. We’ve also won Website & Online Services awards in 2009, 2012 and 2013. We were also Finalist for both Quality Customer Service and Business of the Year in 2012 and this year we were recognised with a Trip Advisor Certificate of Excellence. We have also been awarded Best Local Operator by Viator Travel Awards. Most excitedly, The New York Times listed Swan Valley Tours as one of the recommended things to do whilst in Perth! So from pretty humble beginnings, we have become internationally recognised for our commitment to service and regarded as the premier tour operator of the Swan Valley area.

Australian Business Executive Vol.2 2014

Royal Life Saving Society of WA Giving back to the community

CEO, Alex McKenzie

The Royal Life Saving Society (RLSSWA) is Australia’s oldest and largest aquatic education body. Founded in England in 1891 by William Henry, The Society began operation in Western Australia in 1909. The Australian Business Executive had the chance to speak with CEO Alex McKenzie about their aims, their growth, and their work in Western Australian communities

Australian Business Executive: What are the origins of the Royal Life Saving Society in Western Australia? Alex McKenzie: Since its inception, preventing drowning has been the foundation of The Royal Life Saving Society. The number of people Royal Life Saving has saved can never be precisely calculated but if the drowning rate remained what it was in 1909 then approximately 300 Western Australians would have drowned in 2013. It was less than 40. ABE: What are the aims of the Royal Life Saving Society of WA? AM: To prevent loss of life and promote safe participation in aquatic pursuits. ABE: How does the RLSSWA work with similar bodies nationally, and in different states? AM: The Royal Life Saving Society is one of the largest water safety and lifesaving education organisations in the world, being active in over 40 countries. Nationally the Royal Life Saving Society operates under a federated model with RLSSWA being a constitutional member of The Royal Life Saving Australia. In WA we operate as an independently incorporated association responsible for our own governance and management. We have a far reaching network of instructors throughout WA based around local municipal pools which is supported by a core of professional staff. ABE: There are a few business units within the organisation, can you tell us about how they

operate within the organisation? AM: While we retain many of the community services from when we first began, activities such as water safety education, development of volunteer instructors and fostering the sport of lifesaving. The Royal Life Saving has grown into a diverse organisation that provides a range of training, safety, health promotion, customer contact, skilled labour and related support services. Services which have touched the lives of people from remote Kimberley communities through to the Great Southern coast. In terms of how each service operates within the organisation, we try to achieve a balance between specialisation and collaboration. This tends to change over time. We seek to build capacity, share resources and avoid duplication. ABE: Is your message the same within each community, or do you have separate community based initiatives? AM: We use a range of messages and community based initiatives. Key messages included; ‘Everyone can be a lifesaver’,’ KEEP WATCH’ and ‘Don’t Drink & Drown’. Our goal is to ensure these programs are engaging and relevant. This means we consult with experts and user based reference groups and adapt accordingly. RLSSWA uses a number of delivery models. In some cases our programs are delivered in partnership with local instructors and/or organisations. In other circumstances RLSSWA delivers the services directly to the local

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community. For example we employ managers that operate the aquatic centres (and deliver programs) in the remote Aboriginal communities of Burringurrah, Yandeyarra, Jigalong, Bidyadanga, Warmun and Fitzroy Crossing. ABE: Tell us about some of your recent programs and marketing initiatives. AM: Eliminating toddler drowning has been a key objective of the last planning period. This will continue to be a priority area into the future along with the increasing opportunities for children to learn essential lifesaving skills. We have embraced the digital age and identified areas of potential opportunity to engage the community using these technologies. ABE: Can you discuss the social enterprises and how they give back to the community?

volunteers, staff and infrastructure required to deliver excellent services ABE: How do you fund raise on behalf of other organisations? AM: RLSSWA is a member based organisation with 45,237 members across four member categories (Associated, Award, Sport and Supporter). An important element of our customer service strategy has been the establishment of a specialised Customer and Member Support Centre which delivers customer service, telemarketing, market research and direct mail services. These capabilities are used to assist other not-for-profit organisations conduct successful fundraising campaigns. The services are provided to the charities on a cost-recovery basis and the Member Support Centre functions as a cooperative.

AM: The Royal Life Saving Society WA derives income from the following activities: vocational training, project management, consultancy and expertise, skilled labour hire, fundraising and supplying products. Our income is then used for three principle activities: â&#x20AC;˘ Develop and fund community services that require subsidy â&#x20AC;˘ Invest in research, development and community consultation to inform new and existing service development â&#x20AC;˘ Develop and maintain the high quality

NATIONAL FLEET is in top gear

AustralianBusinessExecutive.com.au Vehicles as a joint venture. It used this experience as a stepping stone to enter into JVs with other organisations, including YBR, to engage in financing a wide range of automotive needs. By partnering with the HIA, National Fleet learned some valuable lessons including the time it can take to develop and run this style of model for a large organization. As Lim explains modestly, they are still in the early stages of learning in their new working relationship with Yellow Brick Road Car.

CEO, Junies Lim

With her origins in Malaysian banking and finance, Junies Lim joined National Fleet nearly five years ago to head the Finance & Insurance department. She joined Australia’s largest automotive dealership network at a critical time when it was going through major changes. Spearheading this change, Junies and her executive team have taken the company through a major growth curve. Several successful tie-ups and product offerings later, the current National Fleet CEO is ready to take the organization even further. Their ability to spot opportunity has led to the latest joint venture with Yellow Brick Road (YBR). The boutique bank and wealth management company has established YBR Car with National Fleet to offer fleet leasing to YBR’s extensive clientele base. The Australian Business Executive spoke with her to discuss what this new partnership with YBR means for National Fleet. National Fleet: The End-to-End Automotive Solutions Company While the company that National Fleet evolved from has been around for close to thirty years in Australia, it’s in the last 5 years that the organization has reached many of its milestones. Previously focused exclusively on logistics fleet management, the business undertook a change in its model to become a single-point, automotive solutions company. This galvanized two years ago when National Fleet partnered with the Housing Industry Association (HIA) to set up HIA

Lim and her executive team, which includes company Directors Ivan Backman as Chairperson, Shane de Gelder (previous CEO) and Christopher Remedios, are aware that their business model is quite unique in the sense that they are able to provide end-to-end solutions, and it has attracted a lot of national business. The Numbers Game at National Fleet For such a significant national presence, National Fleet aren’t a large organization. They’ve been able to manage all of this with under twenty-five staff. So how’s it done? Lim explains their business model with patience, “National Fleet has a national presence through its 300-dealership network. The company has offices in Perth, Sydney, Canberra and Melbourne, and one more coming up in Brisbane.” The model is national, but they utilize a range of dealerships and arrange commissions for referrals. This advantage means they don’t need to be the size of their competitors and this makes them more adaptable and aggressive. Mega Partnerships at National Fleet First HIA, and now YBR, National Fleet chooses its partners with care and diligence. When a customer wants to purchase a car, they do not have to visit numerous dealerships. In the case of their JVs they simply contact the organisation, discuss their requirements, and National Fleet does the work and negotiation across multiple car brands while making the appropriate recommendations. The company is in a unique position to offer a two-tier discount from manufacturer to dealership level. So when a member wants to buy a car, they are assured of a discount from the dealer as well as the manufacturer. Additionally, when they walk into one of the 300 accredited National Fleet dealership partners, they receive exclusive services from trained and accredited fleet managers. National Fleet also works with its clients on financing, utilising multiple banks so they can compare the best solutions. “Using National Fleet’s bargaining power, the

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Chris Remedios, Ivan Backman, Shane de Gelder at the National CSR HIA Awards customer gets the best product, advice, solutions and accounting, all under one roof. The customer doesn’t need to shop between banks, between dealerships and brands, and provide a commission to each and every intermediary.” This same theory applies to National Fleet’s venture with YBR Car. This new partnership has enabled 187 franchisee/licensee chains backed by Macquarie Bank (also a National Fleet partner). It’s a natural synergy that allows YBR to add automotive solutions to their service spectrum. As Lim notes, “cars or vehicles are the second biggest investment in any household. Yellow Brick Road, as a wealth solutions company is an ideal fit to guide its clientele to benefits under the same service model as HIA.” YBR has its own database for its financial planning and mortgage brokerage services that is tapped for automotive services under the YBR Car banner. The new partnership provides all YBR clients with end-to-end service for car procurement, finance and insurance solutions, and assured after sales services. By partnering with strategic organizations like HIA and YBR who have large client databases, it allows National Fleet to attract the interest of multiple car manufacturers and expand their portfolio by partnering with different organizations, who benefit from this access. Big or Small, Solutions for All While these solutions appear ideal for larger companies, many smaller companies are misguided in their belief that fleet services are

just for big organisations. In Australia, around one third of the workforce is supported by small medium enterprises or SMEs. Lim sees a huge opportunity in this mostly untapped SME segment. National Fleet is ready to tap into the SME market and they’re taking this message out through a number of marketing initiatives. The message is simple: even small organisations can secure fleet discounts. Competitors and Product Differentiation When the organization started changing rapidly four years ago, National Fleet was unsure of their place in a niche market. Even with their success, what about potential competitors? Lim shrugs them off, “National Fleet is a real fleet business, most others are just fleet management organizations, pure leasing companies, or middlemen, or intermediaries, or brokers, who send out a quotation to a dealer and then the dealer supplies the car. National Fleet does not perceive itself as a broker as we have a motor trader’s license, plus a national and geographically widespread three hundred plus dealer partner network. We save our customer’s time, get them the best deals, finance, insurance and make it all hassle-free. “If the customer wants to enjoy the ‘touch and feel’ dealership experience, we direct them to our accredited dealer network and service them through our specialist managers. In a Fleet Management Organization (FMO), 99.9% of the time, the customer would not have a clue where the car is coming from. They will have to manage their own test drive as best they can and most likely have to deal with a disgruntled car dealer, as well

Australian Business Executive Vol.2 2014 as all the running around. We are not just a fleet financier; we’re truly an all-in-one fleet service with complete buy, and finance options.” National Fleet’s Business Milestones Lim recounts that in the past the company held a trader’s license. Such licenses were traditionally used only to buy commercial and light commercial vehicles. At one time, National Fleet was coowned by a local courier company and their motor trade license was used primarily for the trading, buying and selling of commercial vehicles, logistic and supply chain needs. Current Chairman, Ivan Backman, was then CEO of Linfox in addition to Chairman of the Australia Logistic Council. The origins of National Fleet are very much in logistics and supply chain. As the winds of change started blowing, the dated business model morphed into a full-fledged fleet service that was not just doing the traditional buying and selling of commercial cars, but also entered fleet procurement. When Lim came on board, she brought her finance background and insurance expertise, turning the organization into a full end-to-end automotive solutions company.

Her explanation is simple and straightforward. “We see a lot of need and demand in the market for our services. A lot of organizations have fleet cars, or are planning to purchase some. When a company plans to buy a car, the first thought for managers is how we are going to finance it? It is to cater to such customers that we have put together these end-to-end solutions. When you come to National Fleet, you are reassured that we are present in every state, and that we will give you every service from brand selection to finance to insurance to after sales. To reach this level in a prospective customers mind requires the creation of a national network. To create a national network, you need dealerships. That’s what we did. The dealerships are our sales partners.” So how does National Fleet tap into the market and ensure prospective customers go to their accredited dealerships? Lim explains that they have established a national call center to secure and collect the leads that are then either managed by an in-house fleet specialist team or forwarded to specially trained and accredited dealers. These dealerships are also the service points for cars of HIA and YBR members. Dealers will even take the

2013 HIA Home Show 42

AustralianBusinessExecutive.com.au cars out to the client for evaluation and take over the deliveries, becoming an integral part of the process. It’s a win-win situation for all in terms of economy and transparency. Customers are shared, and so are the profits. Importantly, the customer has piece of mind in knowing they’re getting a good price, at a single service point, underpinned by an established company. Fleet Services as Tax Savers Two years ago, Lim was learning the ropes of salary packaging by partnering with one of the Fleet Management Organizations ( FMO ) and using their software to offer solutions to National Fleet clients. She found it frustrating. Their processes were slow, tedious and complicated. It seemed they had been designed to confuse the consumer by not being able to calculate what was being paid and where the savings were. She had been introduced to National Fleet by then CEO Shane de Gelder to create a solution that could be used at dealership level. They began developing their own systems and created a new product, ‘Salary Saver Vehicle Leasing’. This new product was clear, precise, and simple. It featured a three page quotation format featuring clearly detailed deductions, pre-tax and

post-tax, and GST. Through Salary Saver, National fleet now salary packages cars to reduce the customer’s taxable income. Giving special focus to SMEs, Lim says that SMEs are generally unaware of these tax benefits achievable through fleet leasing. Even though they may be a small organization, they can still gain valuable tax benefits through fleet services. The big game changer was the ability of dealerships and finance brokers to use the Salary Saver online system to offer salary packaging to their customers. This is a first anywhere and according to Lim, long overdue. SME- Oriented Marketing Initiatives SMEs may sometimes provide company-owned cars for employees to drive, or they may pay a car allowance in order to do business. Either way, the employee gets no tax benefits. Identifying this market gap through Salary Savers, National Fleet utilized call centers again to tap into the SME market. SMEs were contacted and provided with a brief explanation on the benefits of Salary Savers.

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Australian Business Executive Vol.2 2014 quotations and then walk away with hefty referral money from the dealers, money that ultimately comes from the customer’s pocket. They charge hidden costs and high management fees. So the average management fee for any lead they set up can be around $600 a year. National Fleet, on the other hand, charges only $30 a month; one dollar a day. The company has straight up rates for the customers and organizations they negotiate with. We can further reduce establishment and management fees from $30 to $20. It is a real benefit that they pass on to their members.” Proven Experience in Finance

Most of the SMEs approached had never heard of salary packaging, or assumed it was only for large organizations and governments. The manoeuver has paid dividends, not only by increasing their client base, but in growing the awareness of benefits to the SME segment. Realizing the huge market potential, National Fleet is now giving Salary Saver licenses to its dealerships so they too can on sell it to their clientele. If a customer walks into the dealership to buy a car, the dealership can offer Salary Saver as well. Further marketing includes their ‘passport campaign’. This is a survey of ten questions on their database that assists in gauging purchasing patterns like frequency, brand and model preferences, and budgets. Using these questions, National Fleet creates a clearer and better offering. National Fleet also uses national magazine channels providing editorial for education purposes. This advertorial educates consumers on car purchasing and ways to finance and save. Recently, they placed an article in HIA’s magazine discussing the differences between normal business financing and charter mortgage benefits versus employee saving options like Salary Savers. At present, National Fleet is seeking manufacturer sponsors who are willing to pass on even more benefits to their expanding client list. Lim refuses to call the organisation an intermediary within fleet leasing. She describes her reasons like this, “intermediaries file complex and obscure

So what’s the power behind Lim’s strategic game plan for National Fleet? The lady in the top seat smiles, ‘In 2006, I came to Australia from Malaysia with a very strong banking background. In Malaysia, I ran a regional bank for eight years in association with an international bank. So my experience comes from a chain in banking and full financial services, and that’s my educational background too. In Australia, I observed a lot of niches to establish myself from the ground up. I started as a mortgage broker, I learned about Australian markets. About five years later I met Shane de Gelder, (previous CEO), and he asked me if I would be interested in teaming up with him to change the auto industry. Recognizing a great opportunity, I put together a proposal to the board for bringing in the entire gamut of finance products to the National Fleet business on a profit sharing basis.’ Lim’s proposal was accepted and she joined the company, contract managing for the first year. The rest, as they say, is history. Now, she’s not only the CEO but a shareholder and Director as well. Building on her expertise, she has added a full range of procurement, finance and insurance products to the company’s portfolio. Since this interview, National Fleet have won the right as the exclusive supplier of vehicle procurement and salary packaging for the CPA. National Fleet will service CPA and its 110,000 members as part of their member benefits program. We look forward to speaking with the organization again about their continued growth.

AustralianBusinessExecutive.com.au

Ace Body Corporate Management Moving on up

CEO, Stephen Raff

Stephen Raff is the CEO and founder of Ace Body Corporate Management, an international body corporate management company based in Melbourne. Ace manages over 45,000 units Australia-wide and is responsible for managing property and assets worth over $14 billion. Stephen now supports over 75 franchise areas under the Ace name around Australia and Singapore.

Prior to setting up Ace Body Corporate Management, Stephen had many years experience as a National Training Manager, Sales Manager and Administration Manager and was heavily involved in Sales and Marketing areas. He has written various articles on body corporate management for newspapers and magazines in Australia and internationally. He is the author of The Body corporate Handbook. A Guide to

Buying, Owning, and Living in a Body Corporate or Owners Corporation in Australia, he co-authored the bestselling book, Top Franchise CEOs’ Secrets Revealed, and has also authored a book called, 0 – 52 Secrets Revealed and Lessons Learnt. The Australian Business Executive (ABE) took the time to speak with Stephen about the importance of strata services, commissions, and being an authorised representative. Australian Business Executive: How important is it to provide a high level of service as a body corporate manager? Stephen Raff: Extremely important, a high level of service will ensure that members of the body corporate (BC) have complete peace of mind. A high level of service usually entails a body corporate manager being knowledgeable in key areas such as strata legislation, accounting, facility management, conflict resolution, insurance and property maintenance. Combining these key service areas will constitute a happy body corporate and alleviate any unnecessary stress to members. ABE: Why Body Corporate management must be

done in a proper and ethical manner. SR: Acting in a proper and ethical manner as a Body Corporate manager is fundamental to longevity. A Body Corporate Manager’s reputation is their livelihood and if a manager is working in an unprofessional manner then they will be found out very quickly. Also, managers are responsible for the Owners Corporation’s financials and the most expensive asset that most people own, which is their home. Body Corporate Management requires patience and understanding, if a person does not have these characteristics to start with, then it is highly unlikely that they will survive. ABE: Explain the consequences of national licensing no longer occurring? SR: It means that outside NSW and the Northern Territory there are no real barriers to entry to prevent unqualified people setting up as strata managers. Several other states including WA have recognised that there are real and growing risks with billions of dollars in owner funds and trillions in asset values at stake. National licensing was seen as offering a solution but now it’s back to the drawing board at state level. That will take many years and for now the industry itself is focussing on its own accreditation program through Strata Community Australia to provide a clear nationallyrecognised guide to the qualifications and experience of prospective managers. ABE: Why are insurance commissions a necessity for managers?

Australian Business Executive Vol.2 2014 SR: Insurance commissions are the longestablished market mechanism for the cost associated with the key role played by strata managers in the insurance supply chain. Each building is different and the manager is usually best placed and best qualified to source the most suitable cover. Managers also play a key role in insurance claims management. Commissions are a portfolio-based form of remuneration and are therefore usually more efficient than a fee-forservice arrangement where fees have to be agreed on a transaction by transaction basis. If a fee-for-service system was implemented, Owners Corporations/Body Corporates would be extremely disadvantaged as insurance premiums will most likely dramatically increase and the professional service level will decrease. Also, it is my opinion and the industry’s that many small boutique strata companies would go out of business, which will definitely disadvantage the strata industry and profession alike. The payment of insurance commissions is currently a transparent process and in my opinion there is no reason to change. It is only a small minority of owners lobbying government, the majority of owners see the benefits

in managers receiving a commission. Managers are required to disclose this commission and the reasons for it to the Owners Corporation. ABE: What’s the importance of being an authorised representative? SR: Being an authorised representative of two insurance providers means the strata manager has been trained in and is qualified to give general and factual advice on those insurance products. It also means their clients are protected by the liability cover of the insurance provider if something goes wrong and the advice turns out to have been incorrect. ABE: As part of this edition’s focus on Western Australian issues, we asked Stephen if there were any WA specific issues to watch out for. SR: Yes. In fact, next year WA will get the long awaited reforms to its Strata Title Act. In addition to that, in the future WA will begin to feature more commercial and residential properties that will frequently be neighbours, often in the same mixed-use development. This has already been done in Victoria. In Victoria, mixed use Owners Corporations work very well. Generally, you have multi strata schemes in the one development. As an example, the unlimited Strata Scheme is usually referred to as Body Corporate number 1, of which all owners are members. The mixed use part of the Body Corporate (the commercial side) would be Body Corporate 2. The residential part would be Body Corporate 3, in a mixed use development you would then have BC2 and BC3 being referred to as limited BC’s.

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Australian Business Executive Vol.2 2014

DPR can safely supply drinking water By Stuart Khan

Potential benefits of DPR, relative to indirect potable reuse (IPR), include significantly lower energy requirements, construction costs, and operational costs.

The Australian Water Recycling Centre of Excellence recently funded a study, undertaken by the Australian Academy of Technological Sciences and Engineering (ATSE) regarding the future of potable reuse in Australia. The report from this study focuses on direct potable reuse (DPR) systems, where treated water is returned immediately to the drinking water supply system. This differs from indirect potable reuse (IPR), where water is pumped into â&#x20AC;&#x2DC;environmental buffersâ&#x20AC;&#x2122; such as rivers, lakes or aquifers for temporary storage. There are no direct potable reuse (DPR) water projects operating in Australia and no specific proposals for their development. However, ongoing interest in sustainable water supply systems, advances in the science and engineering of water treatment, and recent international developments in DPR have prompted consideration of DPR as a potential future component of Australian water supply systems. Potential benefits of DPR, relative to indirect potable reuse (IPR), are likely to be highly casespecific. However, they include significantly lower energy requirements, construction costs, and operational costs. DPR can also provide an opportunity to allow potable reuse in situations where a suitable environmental buffer is not available for IPR. Potential obstacles or disadvantages for DPR, relative to IPR, are primarily related to public perception and acceptance. Importantly, the ATSE Report Drinking Water through Recycling: The benefits and costs of supplying direct to the distribution system concluded that the scientific and engineering hurdles to implementing safe and reliable DPR are manageable. However, a number of technical issues relating

to the functions of an environmental buffer would need to be addressed to the satisfaction of the community generally. Key among these issues is the need to ensure consistent and assured levels of reliability. It is apparent that existing frameworks for the planning, approval, management, and oversight of drinking water quality and recycled water in Australia could accommodate a well-designed and operated DPR project as a water resource management option. In addition, there are a number of advanced risk assessment and risk management tools which can be considered for the implementation of DPR projects, relative to more established or conventional water sources. The key findings derived from this work include: The science, technology and engineering associated with DPR have been rapidly advancing in recent decades. DPR is growing internationally and will be an expanding part of global drinking water supply in the decades ahead. DPR is technically feasible and can safely supply potable water directly into the water distribution system, but advanced water treatment plants are complex and need to be designed correctly and operated effectively with appropriate oversight. Current Australian regulatory arrangements can already accommodate soundly designed and operated DPR systems. High levels of expertise and workforce training within the Australian water industry is critical. This must be supported by mechanisms to ensure provider compliance with requirements only to use appropriately skilled operators and managers in their water treatment facilities. This will be no less important for any future DPR implementation and to maintain high levels of safety with current drinking water supply systems. Some members of the community are concerned about the prospect of DPR. Planning, decisionmaking, and post-implementation management

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Advanced water treatment membranes, such as used in potable water reuse projects. processes should acknowledge and respond to these concerns. Public access to information and decision-making processes needs to be facilitated. Individual recycling schemes, as with other supply options, will present unique opportunities and risks that need to be systematically identified and managed. In ATSE’s view, the Australian Guidelines for Water Recycling provide an appropriate framework for managing community safety and guiding responsible decision-making. Ultimately, water supply decision-making should be based on an objective assessment of available water supply options to identify the most economically, environmentally and socially sustainable solution. While optimum solutions will continue to be case-specific, ATSE is convinced of the technical feasibility and safety of drinking water supply through DPR when properly managed. ATSE considers there may be considerable environmental, economic, and community benefits of supplying highly treated recycled water direct to drinking water distribution systems in appropriate circumstances. ATSE therefore concludes that DPR should be considered on its merits – taking all factors into account – among the range of available water supply options for Australian towns and cities. Furthermore, ATSE is concerned that DPR has been pre-emptively excluded from consideration in some jurisdictions in the past, and these decisions should be reviewed. Governments, community leaders, water utilities, scientists, engineers and other experts will need to take leadership roles to foster the implementation and acceptance of any DPR proposal in Australia. Widespread media attention accompanied the successful launch of the report in October. This included segments on television news, broad radio coverage and articles in most of the capital city newspapers. This coverage was refreshingly

intelligent and positive. The headline in the Fairfax media was “Drinking recycled effluent ‘inevitable’ in smarter Australia” and the article was accompanied by a readers’ poll on the question “Would you drink recycled effluent?” Of the 1766 respondents, 63% voted “yes”. While there is still more work to be done, it is apparent that the Australian community has come a long way in beginning to appreciate the significant potential advantages of potable water reuse, and coming to terms with some of the natural psychological barriers. An objective of this report was to identify key areas of change required of Australian institutions and communities in order to facilitate taking full advantage of the potential offered by DPR. In order to do so, the report provides a series of recommendations regarding necessary improvements in regulation, oversight, research and development, and community engagement. The full report is available from the ATSE website: www.

atse.org.au

Dr Stuart Khan is a Senior Lecturer for the School of Civil and Environmental Engineering, University of NSW, and an active water researcher with a focus on chemical contaminants in drinking water, wastewater and recycled water. He is the leader of the Trace Chemical Contaminants research stream at the UNSW Water Research Centre. He is a member of the Water Quality Advisory Committee (WQAC) to the National Health and Medical Research Council and led the revision of all aspects involving organic chemical contaminants in the 2011 revision of the Australian Drinking Water Guidelines. Dr Khan has also made significant contributions to other Australian water quality guidelines, particularly the National Guidelines for Water Recycling.

Australian Business Executive Vol.2 2014

‘DIRECT’ may be the best way to go We are increasingly recognising that water supply will not keep up with demand for much longer – at least not if we only use it once. By Jurg Keller Water is undoubtedly one of our most important resources, but we take it for granted. We expect it to run, nice and clear, from the tap then ‘disappear’ again from the sink or shower. But this major achievement of modern life is not without its limitations and challenges. Through population growth, urbanisation and the growing variability of global climates, we are increasingly recognising that supply will not keep up with demand for much longer – at least not if we only use it once. Therefore water recycling has to be a key consideration in the diversity of supplies into the future, together with alternative water sources such as seawater or stormwater (urban runoff). Many cities have recognised this in recent years. Water recycling systems have helped to address the supply shortages and built up valuable experience and public confidence. The Singaporean ‘Four Taps’ approach is probably the best-known example of integrating various water sources from dams, seawater desalination, water recycling and stormwater harvesting into their long-term supply strategy. The recycling of used water (aka wastewater) is by no means an obvious or ‘easy to swallow’ proposition, challenging the public and water professionals across the world. The very foundation of our remarkable improvements in public health and life expectancies over the past century or more has been the strict separation of clean drinking water from polluted wastewater – and now we are starting to connect the two systems deliberately, and calling this “progress”. It has been happening for quite a long time. There are numerous examples, also in Australia, where the water supplies of downstream cities along a river contain significant fractions of treated wastewater discharged from upstream populations. Despite its somewhat ad-hoc nature, this unintentional water recycling has actually not caused serious water quality or human health

incidences despite the widespread occurrence, particularly in highly populated areas such as central Europe or coastal areas in the US. The key to this success is the fact that we have developed an excellent understanding of the important water quality criteria and how to maintain them, which has translated into well-performing treatment operations at both wastewater discharge and water intake. In fact, the performance of our modern wastewater treatment processes has been pushed up continuously over the past decades mainly to ensure environmental protection of downstream waterways, estuaries and bays. Given the considerable investments into these processes, the question can be raised how we could make better use of the treated water than simply discharging it into the environment. AWT technologies The development of intentional potable water recycling in recent years has been enabled by the application of Advanced Water Treatment (AWT) technologies – mainly an extension of current water treatment approaches to include a multi-barrier train of different treatment processes, including membranes, activated carbon filtration and advanced oxidation processes. These AWT plants are typically located directly after the existing wastewater treatment plants and generate a water quality that is at least comparable to, and in many cases far better than, the ‘natural’ sources we have for our drinking water supplies. Particularly in catchment areas with significant human or agricultural activities, or after major natural events such as floods or bushfires, the raw water quality running into our dams is often significantly compromised and difficult to control. Despite these extraordinary advances in the treatment technologies used in the AWT plants, most potable reuse systems still include an “environmental buffer”, such as an aquifer, dam or a river/wetland. These buffers in the Indirect Potable Reuse (IPR) schemes provide time to react

AustralianBusinessExecutive.com.au compromised – for example, during floods or when there are significant water quality incidents in the dams, due to algal or bacterial outbreaks, the supply of recycled water to the dam will not alleviate any possible supply shortages. Conversely, the direct recycling of highly treated water, either to the water treatment plant or directly into the network, will ensure a reliable and safe supply even in such challenging situations. This situation is not at all ‘hypothetical’ – as was experienced during the 2011 and 2013 floods in Brisbane.

to potential incidences, may achieve some further treatment and potentially create a psychologically important separation of wastewater and water systems. But are environmental buffers that important? The recycled water going into these buffers is usually far better quality than the “natural” water there already. And with the extensive on-line monitoring and control systems in modern AWT plants, there is no real need for further reaction time. The control systems simply shut down a process as soon as certain ‘critical control point’ parameters are not met, therefore stopping the entire recycled water production.

In both cases the poor raw water quality seriously affected the water treatment process capacities and only the supply from the desalination plant, and from other unaffected plants connected to the network, ensured an uninterrupted supply to consumers. The introduction of direct recycled water could further enhance the supply security in such cases and also reduce the pressure on the water treatment plants to get back to full capacity as quickly as possible. This in turn will improve the overall reliability and safety of our water supplies especially in such challenging situations. DPR requires us to break the age-old tradition of not connecting wastewater and water systems, but with a careful and conscientious implementation strategy, it will provide at least the same (and possibly even better) public health protection as current drinking water systems do. We may still have to deal with the psychological impacts, but humans have successfully adapted to far greater changes in the past.

It is therefore time to consider “Direct Potable Reuse” (DPR) – without the environmental buffers – in securing diverse water supply options for our growing populations, both in urban and regional areas. This is also the conclusion of the recent ATSE report that considered all aspects of DPR, including cost and energy/material requirements relative to alternative water supply options. DPR was often one of the best-ranked options for alternative water supplies, even compared to non-potable (dual pipe) recycling systems. Significant advantage Such direct potable reuse systems have a significant advantage over the indirect option in that they provide more flexibility in the overall water supply strategy, even in situations where the traditional surface water supplies may be

Professor Jurg Keller FTSE is IWA Fellow, Director of the Advanced Water Management Centre at The University of Queensland and Professor in the School of Chemical Engineering. He is a member of the Executive of the CRC for Water Sensitive Cities and has more than 20 years’ experience in water industry research, particularly in biological wastewater treatment, environmental biotechnology, microbial fuel cells and resource recovery concepts. Republished courtesy of ATSE Focus magazine.

Enhancing Australia’s prosperity through technological innovation The Australian Academy of Technological Sciences and Engineering (ATSE) ATSE is made up of some of Australia’s leading thinkers in technology and engineering. One of Australia’s four Learned Academies, it’s an eclectic group, drawn from academia, government, industry and research, with a single objective in mind – to apply technology in smart, strategic ways for our social, environmental and economic benefit. To achieve that goal, ATSE has formed a variety of expert, independent forums for discussion and action – platforms to move debate and public policy on issues concerning Australia’s future. These focus on energy, water, health, education, built environment and innovation – and the international collaboration necessary to ensure that Australia is abreast of world trends. It’s an open, transparent approach – one that government, industry and community leaders can trust for technology-led solutions to national and global challenges. Each year, the Australian Government recognises the importance of the work we do by awarding the Academy an establishment grant to help with: n Fostering research and scholarship in Australia’s technological sciences and engineering; n Providing and conducting administrative support, workshops, forums and similar events to enable the Academy and its Fellows to contribute on important national issues; n Managing the development and execution of our programs; and n Supporting relationships with international communities.

The Australian Academy of Technological Sciences and Engineering (ATSE) 1/1 Bowen Crescent Melbourne Victoria 3004 Australia +613/ (03) 9864 0900 info@atse.org.au www.atse.org.au

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Where does Australia stand on drinking water recycling? By Ian Law

Water professionals and researchers have shown that direct potable reuse is a safe and sustainable water supply option that must be considered in the development of future water supply portfolios Water recycling is playing a significant role in the diversification of water supplies in many countries of the world – including Australia - and we have seen tremendous growth in its application over the last few years. As we strive to develop sustainable supplies for our cities into the future, there is increasing pressure to consider all options and in particular, the potable reuse (PR) option.

instructing that State’s Department of Public Health to complete indirect potable reuse regulations and evaluate direct potable reuse. California thus views potable reuse as a viable option.

International developments 1968 – 2000: As mentioned above the in 1968. The drivers for the commissioning of the world’s first DPR plant in Namibia were:

Planned Indirect Potable Reuse (IPR) is the term given to a scheme in which the water produced by an advanced water treatment plant (AWTP) is first discharged into an ‘environmental buffer’, surface storage reservoir or an underground aquifer, before being again treated in a water treatment plant and then conveyed to communities.

Low rainfall, high evaporation rates and low runoff;

Examples of such applications can be found in the US, South Africa and Europe, with the oldest one being that at the Upper Occoquan Sewerage Authority (UOSA) plant in Virginia, US, that was commissioned in 1974. If one then adds the incidences of unplanned or de-facto potable reuse – whereby one community discharges its treated wastewaters into a river that then serves as a water supply for a downstream community – then there are many more examples of potable reuse occurring around the world, including in Australia.

Demand management had already been implemented; so there was no other feasible option but water reclamation.

There is now a growing realisation that a more sustainable potable reuse option is to discharge the highly treated water from the AWTP directly to the drinking water distribution system – the Direct Potable Reuse (DPR) option. This concept is not new. The first DPR scheme in the world is located in Windhoek, Namibia, where a plant was commissioned in 1968 – 45 years ago. Potable reuse has recently been enshrined in legislation in California. A Bill was passed by the Californian State Senate in October 2010

All surface sources within 500km had been exploited; Further sources were expensive and controversial; Groundwater usage had been maximised;

These drivers are similar to those now being faced by cities and towns of the US, South Africa and India – as well as Western Australia. The Windhoek plant has undergone four technology changes since 1968, with the most recent being in 2002. 2000 - Present: There was very little interest in the DPR option over the period 1968 to 2000 but prolonged drought and climate change concerns in many parts of the world, together with the search for sustainable solutions for future water supplies, prompted DPR to be included in many evaluations.

Many DPR schemes now being planned and in many cases implemented: United States Cloudcroft, New Mexico (commissioned 2007) Aurora, Colorado (2010)

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The New Goreangab water reclamation plant, Windhoek, Namibia Big Spring, Texas (2013); Witchita Falls, Texas (commissioning due 2014); Brownwood, Texas (regulatory approval January 2013); and San Diego, California (has obtained approval for an IPR scheme but is conducting research to determine feasibility of DPR by end of 2016). South Africa Beaufort West, Western Cape (commissioned 2011); Durban, Kwazula Natal (under consideration after feasibility studies completed); Hermanus, Western Cape (construction due to commence); and Cape Town (tenders submitted in July 2013). India Dehli (182ML/d - tenders called in 2014/15); Bengaluru (140ML/d – tenders called in 2014/15); and Others in planning/evaluation stage.

Australia’s stance? Australia has had Guidelines in place since May 2008 for the Augmentation of Drinking Water Supplies with water reclaimed from municipal effluents – the Potable Reuse option – with these guidelines being produced by an eminently

qualified working party of scientists and health regulators, subjected to international and national refereeing and subsequently accepted by the then Environment Protection and Heritage Council, the National Health and Medical Research Council and the then Natural Resource Management Ministerial Council (EPHC 2009). The Water Services Association of Australia (WSAA), representing Australia’s major water utilities, in its Occasional Paper 25 of July 2010 (WSAA 2010) stressed the need for a diversified portfolio of water supply options to meet the future water needs of an increased population. It noted “It is expected that the development of a diverse portfolio of water supply options including recycled water for non-drinking and drinking purposes, desalination, rural to urban water trading, rainwater tanks, groundwater, stormwater and dams will be required to mitigate the risks associated with population growth and climate change. There should not be any blocks to the different sources of supply and each case should be examined on its merits.” Further, WSAA noted “It is imperative that there are no policy blocks in place that would preclude a source of water being considered for inclusion in a diverse portfolio of water supply options.” The National Water Commission also strongly supports consideration of water recycling on its merits as an option to be reviewed when determining future water supply sources, and notes that “water recycling – including for drinking purposes – can provide a significantly greater

AustralianBusinessExecutive.com.au proportion of Australia’s future urban water supplies. The Commission recognises there are intrinsic risks associated with recycled water. However, in our judgement, advances in science and improved regulatory arrangements mean that such risks can now be managed to levels of safety that are equivalent with other supply sources” (NWC 2010). Despite these opinions stressing the importance of considering all water supply options, South Australia and Victoria still have policies in place precluding the potable reuse option from consideration, despite the fact that Queensland and Western Australia have seen merit in giving the option due consideration in recent times. It is suggested that these policies are driven by a lack of ‘political will’ which in turn results from advice based on sensationalised media reports and/or perceptions of community concerns. This lack of ‘political will’ is causing a growing frustration in the industry as it strives to ensure that future water supplies are developed on a sustainable basis, very much as recommended by WSAA and the NWC. Water professionals and researchers in Australia and elsewhere have shown that potable reuse, and indeed direct potable reuse, is a safe and sustainable water supply option that must be considered in the development of future water supply portfolios. This divide between water supply reality and ‘political will’ must be removed if cost effective and sustainable water supplies into the future are to be realised.

This project has the objective of developing a National Demonstration, Education and Engagement Program that supports successful public engagement and addresses stakeholder concerns through the provision of contemporary scientific information on the urban water cycle and potable reuse. It will involve leading edge methods of communication to overcome known social barriers to acceptance and adoption. This project also covers research into governance and pricing practices with the aim being to identify the impediments to investment in potable recycling, compared to alternative water supplies. References EPHC (2009) Australian Guidelines for Water Recycling. Environment Protection and Heritage Council, the National Health and Medical Research Council and the Natural Resource Management Ministerial Council. http://www.ephc.gov.au/ taxonomy/term/39. NWC (2010) Urban Water Recycling, http://www.nwc. gov.au/__data/assets/pdf_file/0004/9724/Recycled_ water_position_statement_23.11.101.pdf WSAA (2010) Implications of population growth in Australia on urban water resources. WSAA Occasional Paper 25, Water Services Association of Australia, Melbourne, 5 July 2010, https://www. wsaa.asn.au/FreeDownloads/Occasional%20Papers/ Implications%20of%20population%20growth%20 in%20Australia%20on%20urban%20water%20 resources.pdf

The way forward Given that ‘political will’ is driven by perceptions of community attitudes – as evidenced by the Western Corridor decision in Queensland – there would appear to be a clear need to focus on the community at large as, if it accepts the advantages of including potable reuse into the mix of options, the politicians will surely follow. It was Mahatma Ghandi who said “If the people lead, the leaders will follow”. The Australian Water Recycling Centre of Excellence (AWRCE) has taken up this challenge and is funding a project that will address one of its four Goals, Goal 3 – overcoming the barriers to reclaimed water being viewed as an acceptable ‘alternative water’ for augmenting drinking water supplies.

Mr Ian Law is a Chemical Engineer with a Masters Degree in Public Health Engineering from the University of Cape Town in South Africa who is an Adjunct Professor at the University of Queensland. He was, until March 2003, CH2M HILL’s Technology Director for South East Asia, Australia, and New Zealand and has since started his own business and trades as IBL Solutions. He has more than 30 years’ experience in advanced wastewater and reuse projects in Southern Africa, SE Asia and Australia. Mr Law currently serves on the Research Advisory Committees for the Australian Water Recycling Centre of Excellence and the Urban Water Security Research Alliance.

Australian Business Executive Vol.2 2014

BREAKING OUT OF POVERTY THROUGH IRRIGATION CAVAC 1: Simple technology, such as a water pump, has the ability to markedly improve a farmer’s livelihood Most of Cambodia’s rural poor are dependent on agriculture as a vital source of income. While water is relatively abundant in Cambodia, farmers are inhibited by a lack of reliable access to water resources. This affects their ability to produce crops and generate a consistent, predictable income. Contemporary agriculture techniques and technologies have the ability to improve production and may provide opportunities for enhanced access to irrigation. However, for most low-income farmers with smaller plots of land, these solutions are typically not available. It is estimated that 70% of Cambodia’s rural population is dependent on agriculture, with households commonly owning less than two hectares, or acres, of land. Given this, Cambodian land owners must extract as much as possible from their limited land area to lift them out of poverty. The Cambodia Agricultural Value Chain Program

(CAVAC) aims to improve farmer incomes in the rice-based farming system of Cambodia by increasing the value of agricultural production. It is an AusAID program implemented by Cardno, working in partnership with the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Water Resources and Meteorology. CAVAC aims to stimulate sustainable and systemic change in the farming systems on which smallholder farmers depend, such as low-cost irrigation infrastructure, quality agricultural inputs and equipment, and appropriate research and information. Most importantly, before intervening in these complex systems, CAVAC seeks to understand all of the issues. CAVAC’s expertise lies in examining complex market systems. CAVAC analyses the system considering existing financial and social incentives as well as historical and cultural norms and habits, roles and responsibilities, group dynamics, legal

AustralianBusinessExecutive.com.au environments, and constraints and opportunities. This is followed by an assessment of the viability of investments looking at all their uncertainties. The program assesses what innovations are needed and how to facilitate the required changes through working with different market players. With this understanding, CAVAC judges the likelihood of sustainability, as well as the risks and potential value for money prior to any investment. CAVAC also assesses additional capacity required, introduction of innovations, and which players need incentives to change the way they operate. The socio-economic realities of irrigation in Cambodia are complex. Most farmers cultivate rice only in the wet season and too often famers’ rice crops have low yields. Farmers have the ability to gain high yields during the dry months from December to May; however, most farmers have no access to irrigation to plant and harvest a second dry season crop. CAVAC, in partnership with the Ministry of Water Resources and Meteorology, has decided to invest in the construction of river run-off irrigation canals, which provide a greater opportunity to promote sustainable, systemic changes in Cambodia’s rice-based farming process. This is due to the fact that: • Canals present opportunities to provide year round access to water, allowing for double- or triple-cropping; • Canals may have a lower cost to build, rehabilitate and maintain per hectare, or acre; • Most reservoirs only provide water for singlecropping and the net revenues do not allow farmers to pay for the full costs of operational management; and • Run-off river schemes provide for multiplecropping with higher net revenues, allowing farmers to involve the private sector more actively. These partnerships may include actors such as private water sellers that can contribute to the costs for operational management. Taking this into consideration, there are many challenges that CAVAC must address to create sustainable irrigation systems in Cambodia. CAVAC’s research has revealed that most farmers using canal systems avoid paying water fees in the wet season, and many of the functioning reservoir schemes do not have enough water in the dry season to serve more than 15 to 20% of the farmers. Hence, with only 15 to 20% of the farmers using water in the dry season, there are not sufficient numbers to cover operational and maintenance costs. Further, farmers’ ownership

through Farmer Water User Committees (FWUCs) is an essential element in a well-functioning irrigation scheme, but to date in Cambodia, these have been largely unsustainable. Sustainability is often hampered by the widely considered notion that irrigation is a public good by rural communities and is seen as something which the government should provide. This reliance on the government and donors reduces the likelihood of sustainability as the reality of the situation is that farmers need to pay water fees for ongoing operations and maintenance requirements.

CAVAC has built and rehabilitated 7 irrigation canals this year. 8 more are planned in 2013, and up to 25 will be completed before the project closes. To ensure sustainability, CAVAC supports entrepreneurs and enterprises that regularly interact with irrigation markets, as these stakeholders in particular will have an incentive to ensure that the canal with be maintained after the program has been finalised. Therefore, during the process of developing an irrigation infrastructure, CAVAC works closely with all concerned stakeholders, including farmers, local government authorities (district, commune and village), local businesses and the Provincial Department for Water Resources and Meteorology (PDoWRAM). CAVAC has a team of 18 experts, employed to design and supervise construction, as well as establish systems for operation and maintenance, of between four and six schemes each year. In close collaboration with the Provincial Government departments, CAVAC first assesses if investments make sense from an engineering, agricultural, and economic point of view. If a scheme is assessed as commercially viable, CAVAC then identifies the possible stakeholders in each scheme and outlines what their roles and responsibilities will be and what incentives and commitments they will have to fulfil. As CAVAC often enters into relationships willing to share the cost of interventions, a cost-sharing arrangement is then established with the farmers and the relevant local government departments. CAVAC pays for the construction of the scheme, and farmers voluntarily contribute the land required for construction; in many cases, farmers or water sellers may also construct secondary canals. In some cases, CAVAC may even go a step further by sharing the costs for the construction of the

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CAVAC 2: Rural women harvesting rice on a CAVAC constructed canal. canals with the local community and private water sellers. Cost-sharing is an important element of local ownership for the scheme, and helps change the perception that irrigation is a public good. With support from CAVAC, specialists from the PDoWRAM help the farmers set up FWUCs and provide capacity building training as needed. FWUCs are then supported in their new role as managers of their scheme. This process often requires support provided over a number of years in order to ensure sustainability CAVACâ&#x20AC;&#x2122;s approach is relatively simple. The program aims to reduce poverty for the greatest number of people, while providing the best value for money for AusAID and the Royal Government of Cambodia. This can only be done through supporting long-lasting, systemic changes in Cambodia. By 2016, it is expected that approximately AUD$40M of additional net income will be generated annually as a result of interventions by the programme, benefitting 160,000 small farmers within the target provinces, and an additional 70,000 in other provinces. This exceeds the programâ&#x20AC;&#x2122;s preliminary projection of benefitting 130,000 farmers. Further, using a tenyear time horizon from the start of the programme in 2010, the benefit-to-cost value for money ratio of CAVAC is approximately seven to one. The real challenge lies supporting sustainable systemic change; in canals this is initial the organisational aspect of irrigation schemes dealing with various stakeholders holding different expectations, incentives and interests. Understanding these perspectives will remain the main focus for

CAVAC has observed that as a result of program work, more land is cultivated; farmers double-crop and cultivate higher yields; water access is more reliable; local traders interact more regularly in the irrigation market; and the farmers make more money. the CAVAC irrigation and water management component until the end of the program. CAVAC is committed to ensuring that sustainable solutions are executed effectively, to sustain CAVAC irrigation investments now and into the future.

Ben Miqueu is a Consultant for Cardnoâ&#x20AC;&#x2122;s Emerging Markets AP office, working out of Melbourne, Australia. Copyright Cardno Connect Magazine Edition 12, May 2013. For further information please contact Carolina Ravinskas - Communications & Knowledge Management Specialist at Cardno Emerging Markets USA, Ltd. E: Carolina.Ravinskas@cardno.com

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QUEST FOR SUCCESS SA is the country’s most favourable place for Mining investment

In recent decades South Australia has increased its perception as an attractive place to invest in minerals, but with declines in the last two Fraser perception surveys and a host of projects needing investors, Dayne Eckermann investigates our advantages - and what needs to change to entrench South Australia on the global mining map.

current and recent State Governments. Since the introduction of the hailed PACE program in 2003, exploration for minerals has increased from $41 million annual expenditure to the present $312 million, with last year marking the first time greenfield exploration expenditure reached levels higher than pre-GFC.

Discovered by a donkey cart wheel chipping off a piece of rock in the hills behind Glen Osmond, South Australia laid claim to the first commercial metalliferous mine in Australia: Wheal Gawler. The methods of finding and developing deposits have certainly come a long way since the Cornish mining era of South Australia.

The majority of the State’s exploration expenditure has been targeted at copper, claiming an average 45% of the minerals exploration total, followed by iron ore, base metals, gold and uranium. These figures acknowledge the world class copper region of the Gawler Craton, particularly as 62% of all exploration tenements in the State are within this area.

Today, South Australia is host to a large range of minerals explorers either searching for the next tier one deposit or developing known resources into a viable commercial venture. Activity in recent years has increased with vigour due to the recognition of South Australia’s mineral wealth, thanks largely to pro-active polices by

Iron ore is South Australia’s second most explored and produced mineral, and is undergoing a transformation from exploration expenditure around $1 million per year in 2000, to current levels around $50-70 million per year. The production of iron ore has also risen sharply, from three million tonnes per year to nine.

Australian Business Executive Vol.2 2014 As for the State’s other minerals, levels of exploration have increased accordingly - with the notable exception of uranium which in recent years has suffered depressed prices due to global supply and demand factors. Nevertheless, with the end of the ‘Megatonnes to Megawatts’ program and increasing demand for nuclear fuel from Asia, the price is expected to return and uranium mine development– including the re-opening of the Honeymoon mine - to follow suit. At a time where attracting investment is already a challenge for junior explorers, South Australia’s record investment in the next generation of mines is certainly impressive, with an increase of 16 mines or 400% over the last decade. But the question remains: are the State’s mineral and regulatory strengths adequate to balance its mounting challenges, attract investment and ensure a healthy continuation of activity through the highs and lows of the economic cycles? A good starting point in understanding South Australia’s unique environment is the annual Fraser Institute Mining Survey that assesses the attractiveness of jurisdictions to mining investment. The global survey has two components; a mineral potential index and a policy potential index. A jurisdiction’s overall potential is weighted 59% towards the mineral potential factors and 41% towards the policy potential factors. The latest survey from the Fraser Institute ranked South Australia 20th overall. SACOME has compiled and analysed the State’s results over the past decade to understand trends and weaknesses, and how policy changes impact on perceptions of investment destinations. The introduction of the Resources Super Profits Tax and subsequent Mineral Resources Rent Tax, for example, saw the State’s ranking in the taxation category drop from the top 20% of investment destinations to the bottom 40%. For investors and companies exploring for minerals, it is essential to understand the risk in terms of local mineral prospectivity and the policy risk of government actions and regulations. To further examine how investors view the State, SACOME divided the areas surveyed by the Fraser Institute into two key categories to create a measurable index: government, to include all the regulatory categories, and land access, to include all the concerns over this issue. The government index highlights that South

Australia has the most favourable policy environment to encourage investment in minerals projects compared to the other Australian states. This is reinforced by a study commissioned by the Minerals Council of Australia that found South Australia to be the best scoring state in each of the regulatory judgement criteria. Another survey that investigates the investment attractiveness of a jurisdiction is conducted by Resource Stocks magazine, which this year found: “South Australia has again won the ‘battle of the states’ with its reputable mines and petroleum department bending over backwards as always to facilitate investment, and its geology still highly regarded”. The State is highly regarded for providing precompetitive data, bipartisanship and stability in supporting the industry, so it’s certainly a safe place to operate. However little progress seems to be occurring in terms of its challenges. Land access, infrastructure, taxation and skills and labour still weigh on the minds of investors and are hindering project investment and development, with the added technical and economic challenges of accessing deposits deep under cover adding to this mix. Land access concerns arise over multiple users and stakeholders in the land. Recent conflicts between exploration and agricultural land use have highlighted the need for government legislation and regulation to be crystal clear on the rights of those who own the land and those with the right to explore under it. Criticisms of the current processes include a view that the government is fence sitting when it comes to exploration access to agricultural land. One exploration company described a case where they needed to purchase land at the early exploration stage in order to gain access, commenting: “There needs to be some real way the State balances income from the land with income from a new land use, and if this stacks up, then provide a process to allow positive access.” Others say legislated provisions for compensation at realistic levels based on modifying factors would be a welcome mechanism to help resolve some of these issues. Some feel the government lacks experience with activist groups and should be doing more, including publicly correcting inaccurate statements designed to build unnecessary fears in the community.

AustralianBusinessExecutive.com.au Dr Paul Heithersay, Deputy Chief Executive of DMITRE, agrees the issue is a ‘three leg dog’, involving communities, industry and government and says part of the PACE program includes funding to beef up governments capacity to deal with community issues in a proactive way. “We can see clearly by looking at the interstate coal seam gas issues what happens when it goes wrong,” he says. “We all need to be smarter and more open for discussion than we currently are.” Jason Kuchel, Chief Executive of SACOME, says industry bodies play a role in supporting companies with community engagement, such as through SACOME’s Code of Practice for Stakeholder and Community Engagement and Code of Conduct for Mineral & Energy Explorers in accessing rural land, and stresses the need for land access issues to be addressed to ensure investment is not stifled. “Misinformation in the media, anti-mining groups and certain politicians thrive on spreading fear campaigns that promote an unnecessary and damaging ‘farmers versus miners’ situation that could be avoided if people had a clearer understanding of the way the industry operates.” The duplication of environmental approvals is also seen as important to improve industry growth and investment attraction through improving approvals times. Steve Brown, Chief Operating Officer at Eyre Iron cites the company’s Port Spencer approvals as an example. ”We had State approval for the marine side of our port and then were landed with additional requirements from the Federal government – this cost us one year’s additional work, not to mention considerable funds,” he says. Generally though, mining approval times in the State are considered excellent in comparison to the rest of the country. However the system is not consistent and while many companies comment that turnaround times are fast, others report long delays. Nicole Galloway Warland, Geology Manager at Phoenix Copper and Chair of SACOME’s Exploration Committee, says: “I know from my involvement with the SACOME Exploration Committee that many companies have reported negative experiences, especially lengthy delays.” South Australia’s case management system and

government approvals process is recognised as leading practice, winning praise regularly from studies including the Mineral Council of Australia’s recent approvals scorecard and Resource Stocks risk survey, both rating the State top nationally for approvals. Dr Heithersay says there are numerous examples in South Australia where the system has worked well and efficiently and other states are modelling their own processes on South Australia’s one stop shop approach. “However there is always room for improvement,” he admits. Tony Belperio, Executive Director Business Development at Minotaur Exploration, a junior exploration company, says although DMITRE led the pack in pro-active exploration attraction policies 10-12 years ago, important improvements are needed now – particularly in regards to encouraging greenfields exploration. “I see the problems as being due to an inability of the regulatory system to differentiate between exploration and resource definition/feasibility work,” he says. “The mining act needs a simple section on exploration with a clear code of practice and minimal prescriptive regulations that is separate to the more onerous requirements for resource definition, feasibility and mine development.” Many of the challenges of mineral exploration and investment attraction are felt strongest by the junior sector, who account for two-thirds of the mineral resource companies listed on the ASX. They dominate minerals exploration in the early stages and shoulder the greatest burden in greenfield exploration. Due to their smaller size and exposure to the initial stages of exploration, they can be early victims of volatile and skittish markets. An investigation by the Standing Council on Energy and Resources (SCER) recently identified an

Australian Business Executive Vol.2 2014 increasing reliance on the junior sector. The SCER report concluded, “There is a strong argument that governments should foster and support this sector…as [they] are critical to the discoveries of the future”. South Australia can proudly claim to have achieved two of the key recommendations by the Victorian Government’s investigation into Greenfield exploration and the SCER report: a wealth of accessible pre-competitive geosciences data, and co-funding government initiatives through the PACE program. In order to keep up the necessary investment levels, the government’s continued support of successful programs like PACE is essential. Dr Heithersay has overseen PACE since its inception and has even higher hopes for investment into the sector. “We have mineral exploration expenditure currently around the high two to $300 million mark,” he says. “I’d like to see that increase to around $600 million.” With the technicalities and costs constraining the level of drilling that can be conducted on many of South Australia’s deep mineral deposits, efforts by the State government to encourage innovation excellence have been increasing. Bodies such as the Deep Exploration Technologies CRC, based in South Australia, are discovering cheaper technologies such as coil-tubing with real-time data sensors to address this issue. Dr Heithersay says the research and mining service capabilities of South Australia are a unique advantage and as well as providing solutions to the technical challenges in the State, could well establish Adelaide as a global centre for mining excellence. “We have a lot of natural advantages including a very high ratio of mining service companies, a great city to live in and the university students to back it up. The notion of being a national hub of research and excellence is a realistic one,” he says. Always the elephant in the room, infrastructure remains a key issue for the State’s mineral exploration future.

issue seems to be a never ending story in South Australia, Dr Heithersay believes that is about to change. He says the regional mining and infrastructure planning project (led by Deloitte) as a result of the RESIC 2011 Infrastructure Demand Study, is due to be completed very soon and will provide concrete recommendations. “The Federal Government invested $1.5 million in this study, and it’s provided us with a complete picture of what’s coming up in the next few years,” he says. “The report shines a light on South Australia’s potential – including 100 mtpa of additional iron ore exports - and will include clear business cases for infrastructure development to support project needs based on real and verified data and costings.” Upon completion of the study, the State government will make recommendations for port, power and water, both to companies and the Federal government through Infrastructure Australia. Taxation is viewed as another deterrent to investment in South Australia, however the State is competitive with the rest of the nation, particularly through the recent introduction of the new mine royalty rate of 2% for the first 5 years. Fraser survey results for this category include Federal taxation policies, and the introduction of the RSPT and MRRT had a profound effect on all Australian jurisdictions in recent years. In Australia, federal corporate taxes combined with additional taxes on the resource can see the mining industry’s effective tax rate hit a whopping 45% larger than any other industry in the nation. South Australia is a highly prospective state for mineral development and few question the government’s pro-active support over recent decades in fostering this vital industry. However issues surrounding increasing activity on agricultural land, complicated legislation and sector growth highlighting an urgent need for infrastructure, are amongst other challenges combining with global factors to dampen the investment attractiveness of our State.

Improvements in mineral development clusters of power, water, rail, road, and port developments will enable projects that are marginally economical due to the demands of providing this infrastructure, to cross the line over to attractive investment prospects.

“We might be number one in Australia, but not number one in a global context,” Dr Heithersay says. “And that’s the challenge going forward.”

Although lack of resolution on the infrastructure

Story courtesy of SA Mines & Energy Journal.

R.I. Brown Chartered Structural Civil Engineers The business knowledge required to operate for 50 years: An interview with Managing Director Russell Brown

Australian Business Executive Vol.2 2014 able to read many magazines that I would not have an access to including Scientific America, Time Magazine, The Guardian and other journals that were not available at the school I was going to. When I was 15 we had a look at our opportunities and decided that shifting from a high school to a technical college to do a Diploma of Engineering seemed to be a good way to go.

MD, Russell Brown Russell Brown has been in the structural design and detailing industry for well over 50 years. He has recently been accepted as a Fellow to the Institution of Engineers, and accepted an appointment as a Special Referee in a building dispute matter for the Supreme Court. To add to that he is currently Chairman of the Australian Steel Industries Committee on structural matters in Victoria and has just received a grant from the Victorian State government to do research with Swinburne University into methods of testing soils reactivity. As Russell transfers the responsibility of running the business day-to-day, he’s looking forward to the future and to the changes made to various codes that are utilised in housing, while hoping for an ongoing involvement in the industry. In fact, if one looks carefully at the figures, the economic loss to Australia is far greater in reactive soils and their effect on housing and the supply of infrastructure than drought, flood, fire and in fact the aggregated effect of all natural disasters. For this edition we had the opportunity to speak with Russell and get his thoughts on operating a successful organisation for 50 years. Australian Business Executive: What is your background? Russell Brown: At the age of 9 I started off with a newspaper round which allowed me to sell newspapers in the industrial part of Yarraville. From a young age, I quickly learned how hard it is to earn money and the importance of being able to spend it wisely. For six years whilst I was doing it I was also

After the first year of the course, I discovered that I didn’t have enough money to continue. As a consequence I quit the course and went into working for ARC as a junior draughtsman and continued my course for the next six years, finishing the Diploma on a part-time basis. This was done by sacrificing any wage increases I achieved for more time off to go and do more subjects, as most were only run during the day. The learning curve here was reasonably obvious. If you are going to have to earn money to pay your way through doing a course, you’ve got to do the job properly to keep it and you’ve got to make the time count. I also discovered that you need to buy and read the textbooks. With my timeframes, I basically had to educate myself since my contact time with lecturers was limited. Upon graduating I was able to get a job with a fairly large consulting firm along with some background experience in the country roads board at the time and was involved in some fairly big projects relating to a Cathedral in Port Moresby and parts of the original investigations and concrete testing services for the Westgate Bridge. I soon realised that I was most unlikely to be successful in a larger firm as the politics can be confusing, with promotion not necessarily based on merit. I decided it was better to work for myself which I chose to do in about 1971. ABE: You’ve now been in business for over 50 years. Can you give us your thoughts on how you’ve been able to be successful for so long? RB: I think the use of the word successful is probably not correct, survival is probably what we’ve achieved a lot better. Understanding the statistics for Consulting Engineers and small firms, survival rates are generally 10 to 15 years maximum, with the vast majority failing in the first 18 months. Basically good engineers tend to be fairly bad managers both with their time and their money. Looking back, my background probably stood me in much better stead than I have realized. Along the way one learns that you need to reinvent yourself. Your focus needs to shift from what is obvious and what your clients are demanding

AustralianBusinessExecutive.com.au today. You need to keep current with as much research and as much knowledge as possible so that when the change comes you are least able to understand its existence and be able to service the needs that occur from them. Over the years I’ve always been very careful to make sure that we have a multitude of industries that we try to service from both the agricultural sector, particularly outside of Victoria, and also industrial clients within Victoria that are close by. The housing industry is a separate entity along with investigations as to why buildings move and/or fail. All of these provide variation. Some of them aren’t important; some of them create work at various times, and others dry up. Being a very small consultancy, I don’t think we’ve ever been bigger than 12 personnel, it’s important to have both diversity and never have a client who is bigger than one third of your total turnover. When that did occur, we got bigger and handled it and when we shrunk back we looked at it and realised we didn’t make as much money as we might have had we been focusing on some of the smaller projects. We have in the past been successful in building an office complex, subdivision and various other developments that have been very helpful in understanding different things to that of just plain straight consulting and advising architects and builders on what they should be doing. It’s very good to see it from the other side of the coin, and very good to understand there are different pressures on both sides. I also felt it was very important to be involved in industry groups starting with the Association of Consulting Structural Engineers (ACSEV) which I been chairman of. I’m also on the Foundations and Footing Society which I was a founding member, and the Australian Steel Institute. I thought getting information from steel and amalgamating that with the other background would allow for diversity in the offerings of the firm. ABE: So what is RI Brown’s key service offering then? RB: This question is intriguing. The key service that we offer is design of buildings, basically the structural elements, the foundations involved etc. If you look at it though, we also offer lateral thinking. From the inception of the organisation we’ve always been willing to look at alternative methods of doing things, including such items as screw piles supporting structures so that they don’t move on highly reactive soils, to developing a technical

background for the use of steel supporting timber in the old days when we didn’t have roof trusses. More recently looking at fixed formwork techniques whereby the formwork is actually part of the structure and the reinforcement is placed internally and it all goes up without the need for a great deal of strutting and propping. It doesn’t mean we don’t offer the day by day, bread-and-butter items but when asked we certainly would prefer to be offering diversity and innovation. ABE: How is this different from other structural engineering companies? RB: I think we are willing to look outside the square more often than most. We’re also more challenging in terms of what we suggest should and could be done, particularly in major industrial complexes. I have developed a plastic elastic technique of analysing steel structures which is not in full conformity with the norm, however it does give excellent answers and it allows for simplicity in analysing. Further I have always taken an attitude that whenever practical to go on site and do inspections and make sure that what’s being built complies with what we’ve drawn. Even if our clients are not asking us to do so. On major structures where we are asked to go, I always find that the learning curve is massive and we always come back with something that improves our skills and the services we can offer to our clients. From a very egotistical point of view, I think that we are thought of as both innovative and lateral in our abilities. ABE: Can you tell us about some of the technical skills required when undertaking a job? RB: Technical skills to start with are pretty easy; a diploma or degree from a recognised university, and some ability to apply it. After that, the true skills start to come in. How do you apply it? Do you keep yourself current? Are you going to industry groups and learning more? Are you observing how buildings are being built to expand the technical information you have gained from academia? Eventually you should be able to have technical skills that are only minorly reliant on academia or are so integrated with the practical skills that you’re exhibiting that it allows you to undertake any job and do it properly. I could pontificate more on this point but I think that the point is clear. Gaining an academic qualification is level 1, achieving the necessary skills to service clients and to make sure their projects continue properly you need about 3 to 4 levels above that to do it.

Australian Business Executive Vol.2 2014 unionised work?

Structural damage

RB: Having been in the construction industry for as long as I have we have been involved with unions and union sites. The most important thing to understand is that unions are very useful. I think the rush to get projects out on time has gotten in the way of people working in a safe and reasonable manner. Equally when unions are solely arguing for increases in money when there is no productivity gains to be achieved, it causes serious harm to the industry and its long-term expansion. I think properly run unions do improve the way the construction industry runs, but one could equally say that about properly run construction organisations. ABE: Tell us about some of the recent projects you’ve undertaken.

ABE: What common things will clients overlook when undertaking a project? RB: They look for the cheapest fee structure they can get. Naturally we resist on the grounds that if it’s too cheap they’re not going to get the benefits of better technical skills. There won’t the time spent on innovation and project review to make it cheaper or more focused. Clients do tend to be their own worst enemy. You can get some excellent clients who take the exact opposite tack and come to you with a problem that’s inherent in their current construction and want you to solve it. That’s when you can really get your teeth into innovation and looking for ways and means of doing it better. They are by definition the best clients. Not only do they allow you to enhance your skills but also allow you to keep those skills to use them with other clients as well. Clients fundamentally overlook in their own weaknesses. Land developers and building developers don’t recognise they don’t have all the in-house skills to be 100% certain. This doesn’t apply to the majors who typically staff these requirements, but with the small projects we undertake it would be one of the great weaknesses our clients tend to start with. They also believe their consultants can solve all problems, when perhaps they can’t. Finally most clients overlook a cost allowing for errors and a fee structure for the project to minimise those errors. ABE: What are your thoughts on union and non-

RB: We are to have two projects currently running with Swinburne University that we’ve been deeply involved in. Some three or four years ago we lobbied within the Foundations and Footing Society and ACSEV for funds to be put up to seed research into ground reactivity and whether or not we are actually measuring it correctly and/or designing for it properly. This research is being done by Swinburne as we are reading it, it’s coming up with some very fascinating answers which we are hoping to publish by the end of the year. The research has involved a Ph.D. student and several Masters students and has an expenditure of around $500,000. It involves testing by Prof Emad Gad of Swinburne University at a site provided by one of the major building companies in Victoria in the Western Suburbs. It measures soils that are highly reactive and are known to be causing problems. The research also involved going through industry files and looking at projects we have investigated to find what’s right, wrong, or indifferent. This information has been taken and collated into a large database with other firms also contributing from Foundations and Footings Society and ACSEV. An excellent project I’m proud to have been involved in, and grateful it got off the ground and is actually running. The other one has just recently been approved. It looks at one of the methods of testing soils to see if in fact it is accurate and/or whether there are other quicker, cheaper or more accurate methods of achieving the same results. This will take about another year to achieve and it was my firm that made the application to the Victorian Governments for the funds. The second project is the silo we did some 15 years

AustralianBusinessExecutive.com.au ago for a rice grower in NSW, via Sialus. In its day, it was a massively innovative project. It was about 40% of the cost of similar volumes of storage for a one-off grain type. The important element here is that if you wish to store grain of multiple types and quality, you need small silos, and the cost per tonne climbs dramatically compared with one large silo. We came up with an excellent solution. We utilised a curved arched roof which is a very cheap means of production, and it’s freed the steelwork from supporting any of the product. After there is a slight digging out of the ground, and mounding up. Parts of the project actually look a little more like a bunker, except the bunker component is made out of concrete, prestressed and sprayed, and supported in part by screw piles. This means that all product in the silo is supported on concrete and all of it can be emptied using front-end loaders with the added advantage that you don’t need to keep replacing the plastic that is underneath the product restoring. The one project negative, and most humorous part, is that it was completed at the same time the drought started in central New South Wales. I don’t believe that it’s ever been used to its full capacity since. It does remain an incredibly effective method of storing product. It was proven to be very cheap to fill and very cheap to empty. After allowing for depreciation insurance and interest costs, it is about four times cheaper than using temporary bunkers over a ten year period. One of my great passions has been the design of steel structures, the use of plastic and methods of design and detailing. Most steel design is done using computer programs that run on the stiffness of matrix technique. In turn it generates a reasonably good and accurate analysis of a structure within the elastic range. However there are very few programs that take it beyond this and allow you to take part of the structure to flex and redistribute forces elsewhere. It used to be taught a long time back, and its dropped off since computer programs have taken over. We have adapted these techniques and they’ve been taken up by several colleagues. In fact, quite a few of them use this to design without computers. I tend to use a combination of both.

drops and there is an economic loss to the owner. It occurs frequently in most of the western suburbs of both Sydney and Melbourne. These areas have highly reactive soils, and are often of lower socio economic situations. These are the people who can least afford to have their major asset (their home) diminish in value. Over the years we’ve used water level to check the accuracy of the construction and its movement since being built. We have also developed the use of soil testing, taking moisture levels and simplified techniques to work out reactivity. I always try to write my reports so a normal human being can read it. Dealing with the failure is one thing. Dealing with financial outfall for those involved is a separate thing. I know from word- of-mouth experience that many cases of house failure doesn’t come through to us because people can’t afford to have them investigated or fixed. As a consequence, the data is a little skewed because it’s only people who complain that get their house recorded as having failed. There is probably triple the number that hasn’t functioned well. The research by Swinburne is most useful and it only halves what we’re looking at in terms of failure of housing on the highly reactive clays. On a more hopeful note, there are techniques whereby movement on reactive soils can be minimised. It goes back to one of my other love affairs which is steel utilised to hold up a house in a way that it locks down and/or stops it dropping. You can achieve a no movement house in highly reactive soils. It will cost more to build but it will last forever. ABE: Will you retire? RB: I have thought about retirement but I’ve got so many things that I need to do, so many things that I want to accomplish, I don’t think time is going to permit me to do it. I look forward to continuing to maintain an input and to keep going, particularly on the projects that I love so much. Correcting failed housing is one, and making sure that we get the information right so we avoid making design failures in the future.

Failure investigation is mainly focused on residential construction, particularly in the western suburbs. I have been looking at these failures for well over 30 years. The word ‘failure’ is probably misleading. It is not that the construction falls down or collapses, it’s just that it fails to function as well as it can or should. Consequently the value of the property

PENGUIN BARB By Wendy Pyper

Barbara at Mawson in 1993, waiting for the sea ice to form so that she could get to the nearby emperor penguin colony. (AAD)

AustralianBusinessExecutive.com.au birthplace – undertaking practical work on a farm, Barbara quit. She moved to the Netherlands in pursuit of a more suitable agricultural course and ended up working at Floriade; a flower and garden show. An encounter with an Australian rose grower while she was there saw her move to Sydney to work. A few months later she moved to Western Australia and began a Bachelor of Science at Murdoch University. ‘I’d worked out by then that I wanted to study biology and I promised myself that I’d finish my degree this time, even if it killed me,’ she says.

Barbara on her way to the albatross colony on Diego de Almagro, Argentina, in 2001. (Roger Kirkwood) It was a relief for Australian Antarctic Division penguin ecologist, Dr Barbara Wienecke, to finally find a career that she was passionate about. After ‘happily stumbling’ through odd jobs in tourism, pharmacy and horticulture, half-finished degrees in agriculture and an interest in anthropology, she found her niche in seabird research, and particularly penguins. Now, 20 years later, her passion and dedication to her research, and the birds she studies, has been recognised with an Australian Antarctic Medal. ‘It’s extraordinary and humbling that my colleagues thought it was worthwhile putting my name forward for an Antarctic Medal,’ she says. ‘Personal glory is not what I’m after. I hope that whatever we find out about these beautiful birds will help convince decisions-makers that they’re worth protecting.’

True to her word she completed her degree and promptly packed her bags for Europe. After a dalliance in tourism she returned to Murdoch University to begin an Honours project on little penguins on Penguin Island. ‘The first thing my supervisor said to me was that I should not fall in love with the birds because I would not be able to do my PhD on them,’ Barbara says. Within weeks Barbara was not only in love with the penguins, she had, unknowingly, established the course of her future. At the end of her Honours year Barbara walked into her supervisor’s office and said: ‘Ron, you will write a research proposal and when you get the money you will hire me as your assistant and I’m going to continue to work on the birds. They still need my help and we need to fix up the island.’ This determination to champion the protection of seabirds and their habitat from humans and later, climate change, was to become the defining theme throughout Barbara’s career.

It’s not hard to see why Barbara struggled to find a niche; with her enthusiastic wonder of the natural world, her willingness to give anything a go, and her ability to stride through challenges with a cheerful and positive disposition. When life is endlessly fascinating, it’s hard to settle on one thing. One thing was certain though; when she left Germany two days after finishing high school, Barbara knew she wanted a career in the outdoors. She headed to Israel to work in a Kibbutz for 13 months, and here she developed an interest in agriculture. She returned to Germany to study agricultural science at the University of Bonn, but when the Dean went purple and raged at her suggestion that she spend a year in Namibia – her

Barbara weighs an Adélie penguin adult as part of her long-term monitoring of the birds (1995). (Daniel Rodary)

Australian Business Executive Vol.2 2014

Barbara sailing through the Beagle Channel on the way to Diego de Almagro on a yacht chartered especially for the expedition (2001). (Graham Robertson)

In 1993, immediately after she’d completed her PhD, Barbara got a job at the Australian Antarctic Division, working with fellow Australian Antarctic Medal winner Dr Graham Robertson. Her first job was to investigate the foraging (feeding) ecology of emperor penguins at Auster Rookery, near Mawson, using satellite tags and dive recorders.

of colonies on a giant iceberg that calved off the West Antarctic Ice Shelf many years ago. The physical nature of the berg is such that the colony can survive. Rather than sheer ice cliffs, it has an ‘ablated’(eroded) area that stretches gently down to the sea ice, providing a link similar to that between fast ice and sea ice.

‘It was the first time we successfully followed 12 females for the entire period of their winter absence,’ Barbara says.

‘I could not believe there were chicks on top of the iceberg. I would have fallen out of the helicopter if I hadn’t been strapped in,’ Barbara recalls.

‘The breeding biology of emperor penguins was reasonably well understood but we’d never been able to observe the birds outside their colonies, and satellite tracking was really useful for that.’

Barbara also relates a story about a Russian scientific party who set up a tent on the Shackleton Ice Shelf in the 1970s. They were surprised by a group of 30 penguins surrounding them the next morning.

Barbara has lost count of the number of times she returned to Antarctica, but 20 years on she continues her satellite tracking work on emperor penguin colonies at Auster, Taylor Rookery (also near Mawson) and Amanda Bay at Davis. She has also spent time tracking Adélie penguins and snow petrels on the continent, King penguins on Macquarie and Heard islands and black-browed albatrosses in southern Chile. Like all fields of science, Barbara’s research has thrown up more questions than it’s answered. When we think we know a ‘truth’ about something, along comes the exception to the rule. For example, emperor penguin colonies are known to inhabit the fast ice – ice attached to the continent – which provides a habitat suitable for raising chicks. However, Barbara and other penguin ecologists have recently confirmed the existence

‘We observe penguins in certain situations and think we understand what they are doing,’ she says. ‘But we really have to look beyond what we know. Why haven’t we seen emperor penguins on ice shelves before? Because we’ve never looked! ‘It’s fantastic when the unexpected happens because that’s when you learn things.’ In between her trips to Antarctica Barbara has also spent time in the Argentine subantarctic and on longline ships in New Zealand, studying blackbrowed albatross interactions with longline fisheries. Her longline work in the ling fishery off New Zealand was particularly challenging because she knew birds would be killed during line-weighting experiments. But with albatross populations in freefall as a result of fisheries bycatch, it was research that had to be done.

AustralianBusinessExecutive.com.au

Barbara cradling a Penguin chick As a result of Barbara’s and her colleague Dr Graham Robertson’s research, subsequent technological developments with industry, and policy decisions through the Commission for the Conservation of Antarctic Marine Living Resources, seabird bycatch has been reduced to almost zero in the longlining fisheries that overlap with the birds’ foraging and migratory patterns. ‘Sometimes individuals have to pay a price to save the population as a whole,’ Barbara says. Barbara has also paid a price, of sorts. She’s been bitten, scratched and rebuked by her research subjects, she’s spent sleepless weeks on cramped, wet fishing vessels, and years of her life in field huts and tents, battered by blizzards, rain and bonechilling cold.

continue the long-term monitoring of emperor penguin colonies, teasing out natural variability in populations and the birds’ response to climate change. ‘We don’t know the consequences of climate change,’ she says. ‘It’s not just that the fast ice will deteriorate; it may impact on their food supply. Emperors have a wide variety of prey but we don’t know which fish species will be affected. It’s all very well to say the penguins may be able to prey switch, but is the prey even there in the first place?’ She is also excited to have a student commencing a study of the genetic differences between birds from different colonies.

She recalls the six weeks she spent tracking blackbrowed albatross on the Argentine island Diego de Almagro, which receives some eight metres of rain a year. Barbara and two colleagues had to regularly climb 600 m up a mountainside covered in vegetation so dense they had to crawl over it. It was bitterly cold, incredibly windy and constantly wet.

‘We’re beginning to wonder how faithful emperors are to their natal colonies. When you see the distances they travel and overlay the tracks of birds from different colonies, there’s a massive overlap – they must meet up with each other. They are gregarious birds so it’s not inconceivable that they could join another group.’

‘But the wildlife was incredible. There were resident sea otters, seals, orcas and steamer ducks. We saw Andean condors, snipes and hummingbirds – who would have thought! I was sitting outside my tent in my yellow rain jacket one day when a hummingbird came right up to me and buzzed me for a few seconds.’

Perhaps her dedication to her chosen path is best put by one of the tourists Barbara befriended during one of her many trips on tourist vessels as a bird expert. When she encountered her friend out on deck smoking a fine cigar and contemplating life he told her: ‘I’ve been talking to the big man up there and he said to me that we really need people to make sure that we don’t stuff up this planet. And you, Penguin Barb, are one of the people who are doing just that.’

Barbara has lost none of her enthusiasm for field work or her research subjects and plans to

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