Fighting for a worthy cause

Fighting for a worthy cause to make life easier

HRIA executives have been busy working behind the scenes to try to get some important amendments in current legislation to make your life easier.

James Oxenham, HRIA CEO, Garry Kerr, Oliver Shtein and Tim Nuttall have been lobbying the Assistant Minister to the Attorney General, Senator Amanda Stoker, to have the hire industry removed from Personal Property Securities Act (PPSA). The Act is briefly explained in the article on the next page.

HRIA executives also met with Senator Bridget McKenzie and Senator Matt Canavan.

The good news is that to have the hire industry removed it doesn’t require a change to an Act of Parliament but a change to the regulations. This means it is a simpler and quicker process.

“The PPSA is really a law about finance and security but the hire industry was originally dragged into the PPSA because the government thought that people might be misled when hired assets are left in the hands of customers especially for extended periods,” Oliver Shtein, Bartier Perry consultant, said.

“The purported rationale is that buyers or financiers dealing with the customer might be confused and think that the equipment is really owned by the customer and not the hire business. “We think this is a flawed rationale and that hire businesses, which are not really engaging in finance, should be outside the PPSA. The risks to hire businesses obviously outweigh the supposed rationale.

“We want to see ordinary hire business transactions out of the PPSA even if the hire goes for more than two years. By ‘ordinary hire business’ we mean hires that are a normal part of a business where the same equipment is typically hired out to more than one customer over the useful life of the equipment.”

The benefit to businesses in the hire industry is simple.

Hire businesses that don’t really offer finance or finance-equivalents would not have to worry about losing their equipment under the PPSA. There would be no need to register or worry about all of the complexities that go with learning how to make a PPSA registration so that it can’t be challenged if the customer goes into insolvency.

But there is still one caveat.

“However a hire business that is engaging in substance in finance, for example offering rent to buy, hire purchase or long-term hires similar to finance leases where the customer is really looking to the hire business as a substitute for obtaining finance and buying the equipment, would still be caught by the PPSA,” Shtein said.

HRIA are pleased that this matter will be resolved in the not too distant future.

“The impact for businesses where hires exceed 24 months, will be time saved on complex PPS registrations,” Oxenham said. “Hire companies will also be able to go about business without worrying about the risk of losing assets due to the PPS Act.

“Even where hires do not exceed 24 months, there is a chance that the contract could be extended or a verbal agreement might be made that the hire can continue, putting them into the realm of PPS leases and therefore exposing these hires to the PPS Act.”

HRIA have been working on changes to the PPSA since 2017.

“If it was not for the HRIA, indefinite hires would still be in the Act, meaning the minute equipment left a hire yard it became a PPS lease and needed to be registered on the PPS Register,” Oxenham said. “The HRIA was successful in fast tracking an amendment to the Act in May 2017, which took indefinite hire out of the Act and extended the timeframe before a hire became a PPS lease from 12 months to 24 months.

“I would like to personally thank Gary Kerr, Tim Nuttall and Oliver Shtein who have been members of our small but committed team, for their perseverance and commitment to the cause, without whom we would not be where we are today.”

HRIA is working hard to have the hire industry exempt from the PPSA.

The PPSA explained

The Personal Property Securities Act (PPSA) is federal legislation which came into effect on 30 January 2012, changing the way security interests in personal property assets is governed.

Asecurity interest is an interest in an asset, that in substance secures payment of a debt or obligation.

The PPSA introduced the Personal Property Securities Register (PPSR). This is a national register which acts as a noticeboard, showing all registered security interests in personal property. This allows businesses and consumers to deal in a more transparent way. For example, a search of the PPSR can be conducted against a business and the register will display all the registered security interests in that business.

How does PPSA work?

A security interest arises when an exchange of goods has taken place and a security contract exists (this could be as simple as having a retention of title clause listed in the sale terms). At this point in time, the security interest needs to be registered on PPSR.

In the event of insolvency or bankruptcy the PPSA regulates how Trustees or liquidators prioritise the distribution of assets to creditors. Creditors with registered security interests in property held by a bankrupt or insolvent company will have a greater priority in the recourse to the title of the secured property over that of unsecured (and unregistered) creditors under the new PPSA provisions.

The advantage in registering an interest is that registration “perfects” your security interest which allows you a level of recourse to claim your interest in the event of bankruptcy or insolvency. Where a security interest is not registered and the business in possession of the asset becomes bankrupt, you will be classed as an unsecured creditor hence, the importance of evaluating the risks/benefits of registering.

When does the PPSA apply?

The PPSA applies where a party has an ownership interest in an asset, which is in the possession of a third party. Examples are: • Goods are sold on consignment • Goods are sold on Retention of Title • Where an asset is leased or held by a third party with substantially uninterrupted possession.

What’s included/excluded from PPSA?

• Assets included: Goods, crops, livestock, debtors, vehicles, paintings, plant and machinery amongst others. • Assets not included: Land, fixtures, water rights, liens and liquor licences amongst others.

The cost to register a security interest depends on the longevity of the registration period.

Registrations and searches can be carried out on the PPSR website www.ppsr.gov.au

The registration process is relatively straightforward, however, a registration will only be valid if the information provided is complete and accurate.

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Welcome to Queenstown, Kennards relocation to meet growth and demand

Queenstown has always been a bustling hub for the South Island, New Zealand, but in recent years its growth has boomed creating a new crowd of tradies and active DIY’ers. Kennards Hire has responded to this growth and continual demand for hire equipment by relocating, revamping and expanding into a 2,600sqm purpose-built equipment hire branch in Queenstown.

“We are proud to be able to support the local community not only with ongoing investment into the area, but with the clear sign that Kennards Hire is here for the long term,” Tom Kimber, general manager, New Zealand operations said.

“Through the relocation and new build, we have used local sub-contractors, trade suppliers and logistic companies. We employ local people in what is a state-of-the-art branch, delivering on our core promise to make our customers’ job easy.

“It is because of the ongoing support we have received from our locally based customers that we can repay their loyal custom with a brand new branch, stocked with the latest gear so they can just concentrate on delivering their services to their customers.”

Extensive equipment range

The expansive branch opened in March this year and offers an extensive range of equipment to support local trades, residential and commercial construction, recreational industries as well as DIY enthusiasts across the Southern Peninsula.

The new location has a purpose-built site that consolidated two locations into one, stocking everything from gardening and landscaping equipment for the home, all the gear for tradies, along with some of the largest excavators in the country.

“Our new branch has all the gear needed to meet the increased equipment hire demand for residential, commercial and constructions projects in Queenstown and surrounds,” Nathan Wise, branch manager, said.

“We are fully stocked with the most popular gear in the region including earthmoving gear, such as mini loaders.”

Welcome to Queenstown where Kennards Hire will be servicing your business needs.

Taking the initiative from the outset

Genie continues to be a leader in the rental industry with quality equipment, excellent customer service coupled with a wide range of products.

By partnering with industry stakeholders to understand their needs, Genie is able to deliver quality, reliable MEWPs that help contractors do their work safely and efficiently while providing rental companies opportunities to boost their profitability.

“Our product lines offer a wide range of equipment with flexible performance options that are designed with a high return on invested capital and total cost of ownership in mind,” Kurt Kinder, Genie national sales manager for Australia, said.

“This requires durable equipment, expert support, and dependable parts. At Genie, this quality doesn’t happen by accident; it happens by design.”

Genie XC boom lifts and the new Genie GS E-Drive slab scissor lifts embody this philosophy. HIRE21 attendees will have an opportunity to see the S-45 XC and one of our new E-Drive scissor lifts up close.

Heavy lifting applications

Genie launched its XC boom lineup in late 2017, well in advance of global standards changes requiring equipment with load sensing capability.

“This means our XC boom lifts have been in the field globally for several years now, enhancing jobsite productivity and making money for our customers,” Kinder said. “As a result, Genie is the only manufacturer able to bring the proven capabilities of Xtra Capacity to the Australian market.

“Beyond that, Genie also is proud to be able to offer our customers not only extra capacity mid-sized booms, but a complete telescopic offering from 45 ft to 135 ft.”

Responding to customer demand for higher capacity MEWPs, Genie XC booms are designed for maximum efficiency and productivity for jobs that require two operators with tools or other heavy materials. Digital load sense technology enables dual-envelope operation. For the S-45 XC – the newest XC lift introduced in the Australian market – this means an unrestricted platform capacity of 300 kg (660 lb) and a restricted capacity of 454 kg (1,000 lb).

Load sensing continuously checks the weight in the platform and adjusts the operating envelope, according to the load chart. Fleet managers will appreciate reduced maintenance and increased uptime in a load sense system that has no springs or moving parts and offers zero load calibration.

In addition, an expanded working zone made possible with a unique chassis tilt sensor gives operators access to different ranges of motion based on the chassis angle. It automatically cuts out certain lift and drive functions of the machines when the tilt activation setting is reached.

“Genie XC booms not only carry more load than ever before but can also access hard-to-reach work areas on challenging jobsites,” Kinder said. “The extra capacity and maximum working envelope of XC boom lifts enables structural, electrical or plumbing contractors, for example, to do more with a single unit. The number of lift cycles and the amount of equipment needed to get tools to the task is reduced.”

The XC boom lift from Genie continues to be a popular industry favourite.

Clean and powerful AC drive

Genie is focused on delivering quality equipment that performs on the jobsite while also offering high ROI for our rental customers. Genie E-Drive scissor lifts, introduced in November 2020, are a great example of this commitment. Featuring an optimized AC Electric drive system, Genie E-Drive slab scissor lifts offer increased jobsite productivity, reduced maintenance costs, and industry-leading performance.

With high-gauge steel guards and increased ground clearance, E-drive equipped GS scissor lifts can outperform on the most demanding jobsites. The new E-Drive motors are brushless and fully sealed against moisture and water for maintenance-free longevity. Further reducing service downtime, the new GS E-drive scissor lifts have 70% fewer hydraulic hoses and fittings, drastically reducing the potential for hydraulic leaks.

“Owners also will find they spend less on batteries over the life of the scissor lift due to longer runtime per charge and fewer lifetime charge cycles,” Michael Flanagan, Genie product manager, said. Based on industrystandard HIRD cycle testing, E-Drive scissor lifts have shown a 30% increase in runtime per charge, with up to a 20% reduction in lifetime battery costs.

At the same time, Genie E-drive scissor lifts deliver the performance customers need most, with real-world 25% gradeability. Combined with two times the tire tread depth as previous designs, Genie E-drive scissors also have the torque and traction for climbing dovetail ramps, even if one wheel slips.

“A 14° breakover angle enables these scissor lifts to crest the top of the ramp without bottoming out, eliminating the need to winch machines onto trailers or raise dovetails after partial loading,” Flanagan aid. New side forklift pockets on Genie E-drive scissors, in addition to the industry standard rear pockets, simplify logistics, allowing for either driving on and lifting off, or lifting on and driving off the transport vehicle.

Genie will feature one of its new slab scissor models at HIRE21, providing attendees an exciting opportunity to see upclose the benefits Genie E-Drive can deliver to their fleet. “These powerful, eco-friendly electric powered MEWPs are often the first on the jobsite and the last off — exactly what our rental company customers are looking for to improve profitability,” Kinder said.

Left: Manal Thomas: Group Manager - Organisational Effectiveness, Murray Vitlich: Chief Executive Officer and Jeff Hardy: Director Endeavour Clontarf Academy amongst boys from the Clontarf Endeavour Academy.

Clontarf’s Endeavour Academy, a worthy cause

Coates Hire, Australia’s leading equipment hire and solutions company, has launched its investment into The Clontarf Foundation with a visit to Clontarf’s Endeavour Academy, part of Endeavour Sports High in Caringbah, New South Wales.

The Endeavour Academy is one of 136 academies which will receive support from Coates Hire as part of the company’s Reconciliation Action Plan announced last year. The investment, matched by Federal and State governments, will support Clontarf Academies across the country where both Clontarf and Coates Hire co-exist.

The Clontarf Foundation is a national not-for-profit organisation that exists to improve the education, discipline, selfesteem, life skills and employment prospects of young Aboriginal and Torres Strait Islander men and equips them to participate more meaningfully in society.

“Our partnership with Clontarf is one of the proudest initiatives our company has undertaken and it has been an honour to meet the team behind the academy and some of the students who stand to benefit from this initiative,” Murray Vitlich, Coates Hire CEO, said. “We believe in this partnership’s potential to help young Aboriginal and Torres Strait Islander men gain valuable experience, but also in its potential to raise awareness and understanding of the culture of our nation’s first people within Coates Hire.”

In addition to the three-year financial investment, as part of its commitment Coates Hire will: • Begin exploring recruitment (school based traineeships and work placements) and upskilling (competency-based training) opportunities for Clontarf students and alumni; • Develop an engagement calendar for

Coates Hire employees to participate in local academy activities; and • Provide cultural awareness education for

Coates Hire employees.

The Reconciliation Action Plan, announced at an event during NAIDOC Week in November last year, ensures Coates Hire will drive a number of initiatives to foster respectful relationships and create meaningful opportunities with Aboriginal and Torres Strait Islander communities. It will also aim to build cultural awareness and embed a culture of inclusion and diverse thinking across the company.

The plan outlines several significant and clear targets for the company, including increasing Aboriginal and Torres Strait Islander apprenticeship participation rates to 10% by 2025; and increasing its overall employee participation rate to 2.5% by 2025 and educating employees on cultural awareness by June 2021. In addition, the company has pledged to increase its Aboriginal and Torres Strait Islander business procurement to 5% of suppliers engaged in a tender, and 1% of total supplier spend contracted to Aboriginal and Torres Strait Islander-owned businesses by 2022.

“We look forward to helping our students seeking gainful employment when they leave school, and Coates Hire’s commitment opens a unique pathway for many of our year 12 leavers to work directly with one of Australia’s proudest companies,” Jeff Hardy, Endeavour Clontarf Academy director, said.

RAISE HIRE EXPECTATIONS WITH DIECI TELEHANDLERS

When you choose a Dieci telehandler for your rental fleet you’re choosing a machine that has been Italian engineered for quality and locally customised to meet the high expectations of Australian rental customers.

With over 140 models in the range stretching from our nimble Apollo 2.5 tonne through to the massive Hercules 21 tonne and including a full rotational range there’s sure to be a Dieci telehandler to meet the demands of your construction, building, mining, oil and gas or agricultural customers.

Advancing technology for your benefit

Downer, Australia’s leading provider of integrated services, and Coates Hire, Australia’s leading equipment hire and solutions company, along with SITECH WA, Western Australia’s premier mining and construction technology solutions provider, have partnered to trial an Australia-first technology that promises to deliver enhanced safety for construction and mine sites.

Coates Hire is amongst the team trailling an Australian-first technology to deliver enahnced safety for construction and mine sites. Photo by KiwiRail.

The three companies are bringing the revolutionary 3D Avoidance Zone System to Australia, developed by SITECH WA, which prevents machinery entering a restricted area in real-time through the creation of a digital 3D barrier which shuts down connected machinery in the event that any part ‘touches’ the digital barrier.

The technology promises to dramatically reduce accidents and increase safety in construction areas which are being undertaken within tight areas or nearby critical infrastructure, such as rail lines or mine sites. Downer and Coates Hire will deliver the technology as required to construction sites across the country.

Revolutionary zone system

“The system will be used as further mitigation against potential to ‘foul’ the rail danger zone, over and above to those physical barriers already in place,” said Cormac Brady, General Manager, Western Australia Infrastructure Projects, Downer. “Following a successful trial of the 3D Avoidance Zone System, Downer will be able to apply it to our wider rail and civil projects, thus ensuring safety is at the heart of everything we do.”

The technology will be trialled by Downer and Coates Hire for the first time in Australia, with Western Australia chosen as the ideal location for the trial to take place. The location of the trial will not be disclosed.

“Construction sites near rail lines and other critical infrastructure are both necessary and fraught with hazards, as excavators increasingly work within tight areas and nearby fast-moving transport,” James Naylor, executive general manager, west, Coates Hire, said. “Thankfully technology is emerging to ensure these work spaces are safer than ever before, with Western Australia the first Australian state to benefit through this trial.

“This offering is the next stage in our Internet of Things strategy. Once completed, Coates Hire customers will benefit from enhanced safety, productivity and monitoring capabilities.”

How the 3D Zone protects workers and public transport users

An excavator’s position is provided by SITECH WA’s next generation Trimble Machine Control System; Earthworks. Utilising dual Global Navigation Satellite System (GNSS) technology, the position of the whole of the machine is passed to the Trimble Marine Construction software (TMC) which compares the machine’s position with the exclusion zone.

The TMC evaluates the current position of the machine against a pre-defined threedimensional model of the restricted area. If any part of the excavator ‘touches’ the invisible barrier, TMC sends a signal to the machine to stop by disabling all operator inputs, ensuring the operator is no longer able to continue on their current path of movement.

This barrier can be set by site managers, but once the barrier is set there is no need to update the barrier, as the GPS system is always aware of the location of the machine, even if it moves beyond its original location.

“Many ‘2D’ height and slew-limiting systems exist on the market today, but they aren’t nearly as effective and can be prone to more human error,” said Brady. “The operator sets the limits manually by putting the machine up to the limit – this increases risk as these ‘2D’ systems are relative. Once the tracks of the excavator move the system needs resetting.

“With the SITECH WA’s 3D avoidance zone system the restricted area is absolute, and the machine position is always known.”

Traffic light system

The technology works on a “Traffic Light” system. A green alert advises workers and managers that the excavator is all clear to proceed operation; an amber alert advises the worker and site manager that the excavator is approaching the avoidance zone, typically usually 0.5 metres as defined within the TMC software; and a red alert means the excavator has entered the avoidance zone and triggers the machine interlock, which overrides the machine’s operation and halts it immediately.

Developed by SITECH in New Zealand, the technology has been deployed successfully by KiwiRail to ensure the safety of construction workers as well as train passengers and drivers.

“SITECH WA leverages technology in all facets of the construction and mining sectors to improve safety, productivity and efficiency,” George Harris, sales manager, SITECH WA, said. “Applying this technology to Coates Hire’s equipment helps keep workers and the general public safe along with protecting critical infrastructure is of paramount importance to what we do day in, day out.

“This technology can be used in so many different applications on many different machine types. We are excited to partner with both Downer and Coates in this project.”