AusBiz Magazine - April/May 2019

AusBiz.

NEWS+VIEWS | MINING | AGRIBUSINESS | INFRASTRUCTURE

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20 p.8 metals and minerals P.14 current affairs: mining the bight P.20 agribusiness: australian wool P.25 australian pork industry P.30 property: defence housing australia P.34 charity spotlight: careflight P.39 financE: saving tips

Business News+Views Bringing you the latest insights and analysis.

WORDS: libby masi & sarah hinder

A roadmap for the future of hydrogen The CSIRO has released new report, the ’National Hydrogen Roadmap’, which lays out future plans to develop the action and investment necessary to realise the full benefits of a hydrogen economy in Australia.

Hydrogen is a clean-burning fuel with uses ranging from powering vehicles to storing energy, and has the ability to help reduce the carbonisation of the planet when produced using low-emission sources.

According to the blueprints laid out by the CSIRO, a new, innovative and competitive hydrogen market is on the horizon.

CSIRO Chief Executive Dr Larry Marshall explains, “Australia has a unique and urgent opportunity

to turn significant natural resources, including coal, gas, and renewables like solar and wind energy, into a low-emissions energy product and ship it around the world – in some cases literally exporting Aussie sunshine.”

The organisation recently developed the world’s first membrane to separate hydrogen from ammonia for fuel cell vehicles.

This process solves the main difficulty with the resource – its transport. This latest development is just the catalyst needed to kickstart the renewable hydrogen export industry, which will give Australia a competitive edge in becoming a world leader in this carbon-free energy source.

Visit csiro.au

Big things are brewing on the Sunshine Coast Over the past seven years, Australia’s boutique beer and brewery industry has experienced 200 per cent growth.

A thriving recent addition to the industry is Sunshine Coast craft beer brewery Your Mates Brewery, owned and operated

by Shark Tank alumni Matt Hepburn and Christen McGarry.

Sunshine Coast Councillor Peter Cox comments, “The food and agribusiness industry on the Sunshine Coast is valued at $700 million, and features... some of Australia’s leading food and beverage innovators.” He sees Your Mates Brewery as an excellent addition to the region, believing its success is a strong sign of local economic confidence.

“The Sunshine Coast is rapidly being recognised as one of the most dynamic locations for new food, beverage and agribusiness investment in Australia,” Cox adds.

Proud locals, Hepburn and McGarry have so far provided 20 jobs, with more to come. “Your Mates Brewery gives us the scope to increase production of all our beers, develop new blends and bring more product to market, which means even more jobs in the future,” says Hepburn.

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Your Mates Brewing Company takes full advantage of all its resources, including grain by-products which are used by local farmers for their crops. Hepburn refers to this as a “circle of life type arrangement,” supporting the community and local businesses.

Visit yourmatesbrewing.com

Business News+Views

Atlas People provides top-quality chefs around regional Australia Atlas People recruits qualified chefs to travel and work in regional and rural towns around Australia. Benefitting remote pub, club and restaurant operators when they require an extra hand, one call to Atlas People provides access to a pool of high-quality accredited chefs.

Owners and managers can breathe easier knowing they can have a chef on hand with the necessary qualifications and skills, and the option of a ‘try before you hire’ service for long-term appointments.

Meanwhile, by meeting new people and working in venues around the country, many of Atlas People’s chefs find the job provides an ideal balance of interesting experiences and a stable livelihood.

Atlas People originated in regional Australia and now has more than 14 years’ experience in the labour hire business.

Managing Director Doug Fletcher explains that when working with Atlas People you are dealing with a team of experienced staff who understand the hospitality industry and its needs in regional and remote Australia.

“Anyone can easily find a chef in the city.

But, away from the city it’s a bit harder to find qualified people. We've been active in building a large pool of talent that, as well as being qualified chefs, are after a lifestyle that enables them to travel Australia and play a vital role in regional communities,” he says. “Our available talent pool means we can have a chef in place within 24 to 72 hours, no matter your location.”

Visit atlaspeople.com.au and contact Atlas People at admin@atlaspeople.com.au or (07) 3088 3700 for east coast locations and (08) 9468 7500 for west coast locations.

Weir Minerals: increasing Pattison Sand’s productivity A US family-owned sand and aggregates company based in Iowa, Pattison Sand produces a diverse range of products that service the infrastructure and construction industries. After successfully using Weir Minerals mining products at their site, Pattison Sand contracted Weir to custom-design a plant capable of producing more than seven materials – a challenging demand.

The unique facility, located on the Mississippi River, processes highly abrasive materials. This, combined with the physical diversity of the site and an aggressive threemonth timeline, initially presented technical and engineering challenges.

However, the Weir Minerals team was determined to meet Pattison Sand’s exacting demands. Global Service Director Eric Jones explains,

“We are very close to Pattison Sand, and spend a lot of time with them on-site brainstorming ideas and working together. When Pattison Sand presented the ambitious plan for their plant, our integrated solutions team worked with them to make it a reality.”

Now in operation, the custombuilt plant’s flexibility has allowed Pattison Sand to operate more efficiently, exceed production targets and increase its product range. Owner of Pattison Sand Kyle Pattison comments, “Pattison Sand and Weir Minerals have a good working relationship because of the successes we’ve had solving problems and delivering good quality products on time.”

Visit problemsolved.weir to watch a video showcasing the project and its successful operation.

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Business News+Views

Gold Fields is going green Gold Fields’ Granny Smith Mine, near Laverton in Western Australia, is set to install one of the world’s largest renewable energy microgrids, fulfilling its vision of leadership in sustainable gold mining and the reduction of its carbon footprint.

The company has contracted Aggreko to design, build and operate the eight-megawatt solar power generation and battery systems. The energy system will be powered by more than 20,000 solar panels, generating almost enough power to run the mine’s entire processing operations.

Aggreko AusPac Managing Director George Whyte said, “The solar-plus-battery system is projected to reduce fuel consumption by 10-13 per cent – the equivalent of removing 2,000 cars from the road – and produces about 18 gigawatt hours of clean energy per year.”

Construction of the state-of-the-art microgrid is planned to begin in May 2019.

For more information visit aggreko.com.au

Researchers from Flinders University recently completed one of the first large-scale aerial surveys of the eastern Great Australian Bight.

Key researcher Dr Kerstin Bilgmann reports, “In the two weeks of flying, we sighted five cetacean species in coastal and offshore waters, including 71 schools of common dolphins and 14 schools of coastal bottlenose dolphins, as well as seven southern right whales, three humpback whales and one minke whale.” With such a high abundance of common dolphins, these sightings reveal how crucial the regional habitat is to the species.

An exciting spotting of a female right whale and her calf allowed researchers to conclude these waters are used by the endangered species for transiting from southern feeding grounds to coastal aggregation sites at the Head of Bight and Fowlers Bay, to give birth during winter.

In a region where tourism, fishing and commercial industries are prevalent, such research is essential in providing a better understanding of its role as a habitat

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IMAGE: KERSTIN BILGMANN

Great Australian Bight aerial surveys reveal its ecological significance

for endangered marine species, and ensuring the long-term prosperity of its inhabitants.

While marine predators such as dolphins have already been negatively impacted by interactions with fisheries, debris entanglement, human pollution and coastal development, more recently the region has become a frontier for potential offshore petroleum resources, and is actively being explored for oil and gas.

Read more on the issue on page 14 of AusBiz. or for more information visit news.flinders.edu.au

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Business Story

Best foot forward

IMAGES: MICK DODDS PHOTOGRAPHY 2019

HOW FOOTWEAR ENTREPENEUR JENNEN NGIAU-KENG LIFTED THE LOCAL SHOE GAME, AND STAYS A STEP AHEAD OF THE COMPETITION.

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Some people’s career paths are straightforward. That’s not the case for Jennen Ngiau-Keng of Jennen Shoes. He wasn’t an apprentice cobbler or shoemaker. In fact, he was more focused on using his hands than his feet when he made the decision to open his eponymous business.

“I was working as a professional violinist with the Melbourne and Tasmanian Symphony Orchestras.

Despite being a dedicated musician, I had an urge to create my own venture and stimulate my mind in a new way,” he explains. “I was on tour in the US when I stumbled across elevator shoes.”

If you aren’t familiar with the term, elevator shoes are footwear with thickened insoles under the heels to make the wearer appear taller. In AusBiz.

the case of Jennen Shoes, they can increase your height by three to 10 centimetres, without looking obvious.

“I did my market research and found elevator shoes to be scarce and unfashionable,” Ngiau-Keng reveals.

“However, this didn’t stop Hollywood celebrities including Tom Cruise and Sylvester Stallone from wearing them both on and off set.

“A year later, I launched my first collection of Jennen Shoes online, with a focus on providing elevator shoes that were stylish, comfortable and durable.”

Twelve years on, the company has a broad range of footwear which includes options for both men and women, as well as vegan elevator shoes and lifts to balance out leg-length discrepancy.

First steps

Ngiau-Keng quickly learnt that in order to establish a business, you need to be your own conductor. “In the beginning I worked day and night, because I didn’t set boundaries or build systems for efficient expansion,” he says. “Planning the growth of the business in order to sustain a balanced lifestyle is very important.”

When starting a new venture, it’s important to have a strong philosophical base to undergird your decisions. Even if your core reason for operating is ’make profit’, you will benefit from thinking about the why of every step you take from day one.

In addition to following the tenet of Ralph Waldo Emerson’s famous quote, “In my walks, every man I meet is my

IMAGES: MICK DODDS PHOTOGRAPHY 2019

Business Story

Fast Facts

1500s

Elevator shoes date back to the 1500s, when cowboy boots were all the rage in Spain

AFL

Jennen Shoes count Aussie politicians, AFL players and other celebs among their anonymous clientele

superior in some way, and in that I learn from him,” Ngiau-Keng has three grounding philosophies: • Treat others with kindness; • Build meaningful relationships with those who share similar values; and • Educate our children to be responsible members of society and compassionate human beings.

“I feel proud when I’m living by my values,” he says. “I also feel proud when know I have positively influenced someone.”

Staying ahead of the game

You don’t have to be an industry pundit to know retail is a tough, cut-throat game, especially when you’re looking at the disruption to the sector that has taken place in recent years. Gone are the days of hanging up a shingle and laying out your wares for passers-by.

“Technology has transformed the way we shop, let alone the way we live,” says Ngiau-Keng. “Since the boom of online retail, businesses that

previously dominated the market are now burdened with large infrastructure, archaic systems and too many employees. Reacting to consumer trends is vital to stay in business, but massive transformations like these are costly and time consuming.”

In response to these changes to the market, he has made a hard pivot, completely transforming his business model to match consumer behaviour.

“We’ve focused our efforts on website advancement, online marketing and online customer care,” he explains. “In 2013, 70 per cent of our customers purchased at our retail outlets, while only 30 per cent purchased online. In 2017, the results were the opposite. Over 70 per cent of our customers preferred purchasing online. By early 2019, we closed all our retail outlets – we now operate 100 per cent online and have increased sales and reduced overheads.”

If you consider the usual process of purchasing shoes – which generally

includes trying them on – this is a remarkable achievement.

Jennen’s advice for new entrepeneurs

If you’re an accomplished violinist looking for a new hustle (or even if you’re a brickie’s labourer with a genius idea to bring to market), here are seven pearls of wisdom from Ngiau-Keng: • Start small if you don’t have large amounts of time and money to invest.

• Market research your business ideas to ensure there’ll be demand.

• Crunch the numbers to ensure it’ll be worth your efforts.

• Provide a unique, quality product or service focusing on customer care.

• Plan and control the growth of your business to sustain a balanced lifestyle.

• Create a business culture that’s uplifting and beneficial to everyone involved.

• Listen to your customers and evolve from their feedback.

APRIL/MAY 2019

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Metals & Minerals

Darren Baguley Darren specialises in the fields of technology, mining, agriculture, energy and business.

The high-tech metals and minerals powering the future OUR MODERN WORLD IS BUILT ON COAL, STEEL, GLASS AND CONCRETE – BUT AS SOCIETY CHANGES SO DOES COMMODITY DEMAND. 8

AusBiz.

Metals & Minerals

Fast Fact

40kg

The lithium ion battery of the new Nissan Leaf EV contains 40kg of graphite

A S W E L L A S T R A D I T I O N A L M E TA L S SUCH AS COPPER, ALUMINIUM AND S T E E L , W I N D T U R B I N E S A L S O C O N TA I N T H E H I G H -T E C H M E TA L C O B A LT

Given that it can sometimes take decades between initial exploration, discovery of a deposit and approval and construction of a mine, mining companies need to be able to peer into the future. In the absence of a serviceable crystal ball, miners have to maintain a watching brief on global economic and demographic trends, shifts in consumer demand, environmental change and, more recently, technological change.

The pace of technological change is relentless. Smartphones are nearly ubiquitous in the developed world and are rapidly achieving the same in the developing world. Notebook PCs, tablets, smartwatches and fitness bands have followed or are following the same adoption curve.

These portable technologies are at the core of demand for lighter, more powerful and more reliable batteries – but it’s not just the global technology giants that have benefitted. Rapidly developing battery technology is driving development of electric cars as well as energy storage – both utility and household scale. 

Metals & Minerals U T I L I T Y S C A L E B AT T E R I E S C O N TA I N L A R G E A M O U N T S O F LITHIUM AND GRAPHITE

Fast Fact

42 trillion

We may end up mining in space – if we do, near-earth asteroids are estimated to contain more than 42 trillion tonnes of metals and minerals

Deloitte’s ’Tracking the Trends 2018’ report explains: “As economies mature and technological advancement progresses, mining companies are seeking greater exposure to laterstage commodities such as tech metals and boutique minerals. One of the most frequently cited examples these days is lithium, an integral component of battery technology. In anticipation of the exponential growth of electric vehicles (EVs) and energy storage systems, the global battery supply chain is mobilising.”

While EV adoption in Australia is low, just 0.18 per cent of new car sales in 2017 according to WhichCar, the local market matches the global trend with new models being introduced every year, and a slow but steady rollout of charging infrastructure across the country.

More importantly, the member countries of the Electric Vehicle Initiative (EVI), including Canada, China, France, Germany, Japan, the Netherlands, Norway, Sweden, the UK and the US, have announced plans to increase the market share for EVs to 30 per cent by 2030.

In response to anticipated demand

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for batteries Tesla has built its Gigafactory in Nevada, which produces 35 gigawatt-hours (GWh) of capacity annually, and China has foreshadowed plans to build battery factories with more than 120GWh annual capacity by 2021.

Responding to these trends, most mining and energy industry analysts predict that world demand for lithium will increase by 200 or even 300 per cent by 2030. With seven lithium mines already operating in Western Australia – including the Greenbushes operation, the world’s largest hard rock lithium mine – Australia is well placed to take advantage of this increase in demand.

But lithium is not the only commodity that has seen demand spike as worldwide battery production increases exponentially. Like lithium, graphite and cobalt are integral components of cutting-edge battery technology, and the development of these resources is at a similar stage of development that lithium was a few years ago. China has long been the world’s biggest supplier of graphite, but its share has been steadily declining as higher-grade deposits

are worked out and stricter environmental regulations cause the closure of some mines.

Australia is unlikely to take China’s place as a major graphite producer, however, there are deposits in both Western Australia and South Australia.

Quantum Graphite (ASX: QGL), formerly Valence Industries, owns the Mikkira Graphite Deposit located on the Eyre Peninsula, near Port Lincoln.

The deposit includes the Uley Graphite Project, also known as the Ouray mine, which was Australia’s only operating graphite mine between the 1920s and 1993 when it closed, only to reopen in 2014 and close again in 2016. Despite Uley’s chequered history, Mikkira is acknowledged as a world-class deposit and analysts are cautiously optimistic about Quantum’s future as graphite supplies tighten and prices rise.

While it was in production, Uley produced up to 14,000 tonnes of graphite concentrate annually. By contrast, the McIntosh flake graphite development, located approximately 100 kilometres from Halls Creek, in northern Western Australia, currently undergoing a feasibility study, is predicted to produce around

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Metals & Minerals

AN INCREASE IN SMART CAR CHARGING INFRASTRUCTURE IS S L O W LY R O L L I N G O U T AROUND AUSTRALIA

CHINA HAS LONG BEEN THE WORLD'S LARGEST SUPPLIER OF GRAPHITE

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100,000 tonnes per annum of high-grade (96-98 per cent TGC) graphite concentrate. Jointly bankrolled by Mineral Resources (ASX: MIN) and Hexagon Resources (ASX: HXG), the project kicked off mid-2018 and has a three-year timeline to commercial production.

Cobalt is another high-tech metal that represents a significant opportunity for Australian mining companies. According to Deloitte’s ’Tracking the Trends 2018’ cobalt consumers are “facing a global supply deficit that may grow from 885 tonnes in 2018 to 5340 tonnes in 2020. To complicate matters, almost 70 per cent of the world’s cobalt supply comes from the [notoriously unstable] Democratic Republic of the Congo.”

Australia has the second largest reserves and is the world’s fourth largest producer of cobalt. Broken Hill-based Cobalt Blue (ASX: COB) and Clean TeQ (ASX: CLQ) are just two of several junior miners rushing to explore for the blue-grey metal.

Both companies will need to raise funds to build the new mines and processing plants needed to exploit the deposits but they’re optimistic that

rising prices and Australia’s political stability will make the difference.

Deloitte adds that while new metals and minerals such as lithium, graphite and cobalt are the next big thing, “both nickel and copper are reinventing themselves as commodities of the future as well. EVs are expected to contain four times as much copper as combustion-powered engines.”

Given the trend towards portable electronics, EVs and renewables, it seems unlikely that demand for the high-tech metals needed to produce batteries will abate any time soon.

EVs will make a rapid transition to the mainstream once the price gap with internal combustion engine (ICE) powered vehicles narrows, and Deloitte notes that “over 160 countries and counting have publicly announced commitments to increase the share of renewables in their electricity mix, with 59 countries planning to shift to 100 per cent renewable energy in the coming decades.”

Whether they’re destined for smartphones, PCs, EVs, household or utility scale energy storage, Australia is well placed to supply the world with the commodities of the future.

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Current Affairs

WHAT LIES BENEATH

A CATACLYSMIC ENVIRONMENTAL DISASTER WAITING TO HAPPEN, OR A ONCE-IN-A-GENERATION OPPORTUNITY TO SAFEGUARD AUSTRALIA’S OIL SUPPLY AS WELL AS BOOST THE NATIONAL ECONOMY TO THE TUNE OF BILLIONS? THERE ARE COMPLEX ISSUES SURROUNDING DRILLING IN THE GREAT AUSTRALIAN BIGHT, AND THE STAKES ARE HIGH. 14

AusBiz.

Ian Lloyd Neubauer With nearly 20 years’ journalism experience, Ian is abreast of global news as it happens.

Current Affairs

CLIFFS ALONG THE G R E AT A U S T R A L I A N B I G H T

THOUSANDS OF KILOMETRES OF COASTLINE COULD BE AFFECTED

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t’s one of the most important whale, shark and tuna nurseries on the planet – an utterly pristine marine environment with biodiversity thought to be on par with or possibly even excel that of the Great Barrier Reef. During a recent study researchers gazetted 1,267 species, a third of which were altogether new to science.

Yet few people have heard of the Great Southern Reef, probably because it’s really, really hard to get to. It’s concealed one to three kilometres below the surface of the Great Australian Bight, in treacherous waters braced by sea cliffs up to 120 metres high.

The Bight is also rich in oil. BP forecasts the region could yield as much oil as the Mississippi Delta and committed $1.4 billion to prospecting in the Bight this decade, but pulled out in 2016, when global oil prices hit rock bottom.

But oil has already begun to bounce back and Australia is keen to get a piece of the action.

The Federal Government has even promised foreign oil companies that in the event of a catastrophic oil spill, they’ll be able to claim a tax deduction for the clean-up, essentially passing the bill on to taxpayers.

That hasn’t played well with greenies or the 10,000-odd people who work in fisheries and tourism in the Bight – industries that generate $10 billion annually in economic activity. Late

last year, Greenpeace published an oil spill simulation leaked from Equinor, a Norwegian energy giant that plans to start drilling the Bight as early as next year. The simulation showed a spill could dump 4.3 million barrels of oil – 30 per cent more than the BP Deepwater Horizon spill in the Gulf of Mexico in 2010 – into the ocean. Thousands of kilometres of coastline could be affected, including Kangaroo Island, Tasmania’s World Heritage-listed areas, and as far north as the beaches of Sydney.

“Our biggest concern is the Bight is so remote and has some of the deepest water in the world as far as drilling attempts go, so if we get a spill on the lines of the Deepwater Horizon, we’re all stuffed,” says Andrew Neighbour of Kangaroo Island Marine Adventures.

He is one of many residents up in arms after Australia’s national offshore oil and gas regulator NOPSEMA approved an application

by PGS Australia to conduct seismic surveys – the precursor to offshore drilling – only 90 kilometres west of Kangaroo Island, in a patch of ocean that intersects one of Australia’s most fertile rock lobster fishing grounds and migration routes for endangered blue whales. “After nearly wiping them out, Australia’s whale population is experiencing a resurgence. The last time they did seismic 

FAST FACT The Bight was formed 65 million years ago when a chunk of land split off from Australia and drifted south, eventually becoming Antarctica APRIL/MAY 2019

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Current Affairs

testing in South Australia a dozen sperm whales beached themselves – so we don’t believe it’s as harmless as they say,” he says.

FUEL SECURITY

T H E G R E AT A U S T R A L I A B I G H T I S H O M E T O I M P O R TA N T HUMPBACK WHALE AND BLUE W H A L E M I G R AT I O N R O U T E S

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Federal resources minister Matt Canavan has predicted an oil industry in the Great Australian Bight could transform the South Australian economy, create thousands of jobs and generate billions in income.

And the minister’s message has not been lost – not even among the people of Kangaroo Island. “There are just as many people on the island who are for drilling as there are against it,” concedes Neighbour.

But it’s not just voters who lost their jobs following the hollowing out of South Australia’s car and steel industries who should favour drilling in the Bight: Canavan argues the issue is important to anyone who cares about the country’s rapidly diminishing fuel security.

Since the start of this decade, Australia’s

net petroleum stockholdings have fallen from our International Energy Agency obligations of 90 days’ worth to just 50 days. According to the Federal Department of Mining and Energy, this amounts to about 21 days of petrol for cars, 18 days of diesel for trucks and 20 days of aviation fuel.

Reserves would be burned much faster in the event of war. Take, for example, the growing threat of a US-China conflict in the South China Sea – a region home to shipping routes Australia depends on for 55 per cent of its fuel. Any kind of conflict there would see food, medicine and all basic consumables become scarce in a matter of weeks.

“The Great Australian Bight is one of the world’s most prospective oil and gas basins,” Canavan says. “We should do all we can to see it developed because that will bring jobs and help improve fuel security.”

But that’s nonsense, according to retired air vice-marshal John Blackburn, who’s been

Current Affairs

“THE GREAT AUSTRALIAN BIGHT IS ONE OF THE WORLD'S MOST PROSPECTIVE OIL AND GAS BASINS” lobbying the Government to improve fuel security for five years. “Guaranteed flow of oil is what’s important,” Blackburn says, pointing out that just 20 per cent of Australia’s crude oil is refined onshore. “You can drill as much bloody oil as you like, but if we don’t ensure we’ve got a refinery industry and distribution capability on road, rail and sea to move the stuff around, it doesn’t matter.”

Nevertheless, both the Liberal National Government and the Opposition, if they win the next election, are likely to green-light drilling the Bight. There’s just too much money at stake.

Oil and gas are the single largest contributors to Australia’s $50 billion marine economy, far exceeding fisheries and tourism. There’s also the vote-pulling argument that a robust Australian oil industry could keep domestic energy bills lower – unlike renewables such as wind and solar with their colossal start-up costs.

“Our energy mix is changing; the role of renewable energy is increasing and our industry is very much a supporter of that,” says Matthew Doman of the Australian Petroleum Production and Exploration Association. “But we will use a lot of oil and a lot of gas for decades to come.”

0.014 PER CENT

Norwegian oil giant Equinor has downplayed the importance of the oil spill simulation published by Greenpeace, saying it was part of an unfinished environment plan based on a combination of 100 different worst-case scenarios. The company also claims it has drilled “65 deepwater wells safely” and draws on 45 years of experience “successfully working in similar offshore environments.”

But investigation shows Equinor has caused oil spills in Arctic waters near Norway while trading under its old company name StatoilHydro. In 2010 workers on a North Sea oil rig had to be evacuated as rescue engineers worked around the clock to control a huge build-

ENDANGERED SPECIES INCLUDING AUSTRALIAN SEA LIONS AND BLUE WHALES L I V E I N T H E W AT E R S O F T H E G R E AT A U S T R A L I A B I G H T

up of pressure that had the potential to blow up the entire rig. But Statoil’s safety protocols held fast and disaster was averted. In 2015 seven cubic metres leaked into the sea from a hose, and in 2016 there was a fire on a Statoil oil rig.

The anti-drilling camp argues these incidents show Equinor’s experience comes from taking risks in places where other companies won’t go.

It also puts into question Equinor’s statistical modelling for an uncontrolled oil spill from an underground well – 0.014 per cent or one for every 7,100 wells.

“It’s extraordinary that we’re about to put this ecosystem at risk when we know so little about it,” says Greenpeace’s Nathaniel Pelle.

“Wherever there is drilling, then accidents are inevitable. It’s only a matter of how bad they are and where and when they occur.”

But Equinor country manager for Australia Jacques-Etienne Michel said the company will only drill in the Bight if it is assured it can do it safely. “By the time we drill, we will have spent more than two years planning this project to satisfy ourselves that we can operate safely and in accordance with Australia’s strict environmental and regulatory requirements,” he says.

FAST FACT The Bight is a haven for 36 species of whale and dolphin, and Australia’s most important sea lion nursery.

APRIL/MAY 2019

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AusBiz. Promotion

Cost and Return Measurement of Technology’s Success

Cameron Waters, Business Manager – Geospatial Systems at Position Partners

What impact would it have on your business to upgrade all your surveying equipment and software in one transformative move? Is the high-risk nature of large capital expenditure holding you back from keeping up-to-date? It’s possible to increase your return on investment (RoI) and kit out your business with the latest equipment and software while reducing the risk involved in a large capital layout.

Attracting the best and brightest

There is a shortage of surveyors across Australia. One advantage of upgrading your equipment and software is that this is what young, tech-savvy employees are looking for. In a market that has more work than people, business sustainability depends upon attracting the best, meaning incorporating state-of-the-art technology is essential.

Known cost structures protect margins

Training and support

Weighing up a technology refresh

Connecting and adding real value

Today, you can expect technology and service providers to proactively help you fix long-term software licences and maintenance contracts matching your financial constraints.

It’s important to then convert those fees to costs per hour and secure improved, reliable margins. Knowing this can support your ability to adjust your rates to market without unwelcome repair and maintenance surprises.

Upgrading surveying equipment and software can be daunting, and the potential risk and effort needs to be weighed against the RoI. The latest equipment provides: • Proven productivity and uptime gains.

• Quality and speed of output well in front of competition.

• Collaboration streamlines relationships with key partners.

• Attractive workplaces for scarce young, tech-savvy talent.

Integrated collaborative workflows

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APRIL/MAY 2019

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Australian Wool

Lisa Smyth Business and travel writer Lisa Smyth is a non-stop nomad, living everywhere from Myanmar and Germany to PNG.

The resurgence of the Australian wool industry WOOL IS TRENDY AGAIN AMONG FASHIONISTAS AND CELEBRITY ATHLETES, AND THE MERINO WOOL INDUSTRY IS MAKING THE MOST OF ITS RETURN TO GLOBAL DOMINANCE. 20

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Australian Wool

L E F T: F I N E A U S T R A L I A N M E R I N O W O O L R I G H T: W E T H E R S O N T H E R O A D NEAR GLENWOOD MERINOS IN W E L L I N G T O N , N E W S O U T H WA L E S

Thinking of wool conjures images of chunky, cosy jumpers and thick scarves worn while sitting in front of a fireplace in a log cabin half buried in snow. You probably don’t think Lululemon yoga pants or Adidas running shoes – but in 2019 that’s exactly where more and more Australian Merino wool is ending up.

“It’s not so much that the industry has changed, it’s that the consumer demographic has changed,” explains Stuart McCullough, CEO of Australian Wool Innovation (AWI), a not-for-profit company owned by Australia’s 24,000 woolgrowers that invests in research, development, innovation and marketing.

“Generation Y and Millennials are pretty curious about understanding natural fibres, and the 300 million middle-class Chinese on our doorstep are eager to consume our products – the market is very different from 20 years ago,” says McCullough.

Let’s get physical

Today, the Australian wool industry is worth $3 billion a year on average, and 90 per cent of the world’s apparel wool is produced by Australian Merino sheep. In the past eight years the global price of wool more than doubled from $7.50 to $18.20 per kilogram as demand has grown but supply remains finite – Australia’s current wool-producing flock is less than half what it was in 1990.

As brands such as Chanel and Burberry rediscover the warmth and durability of fine Merino wool, athleisure brands such as Nike and Under Armour are creating whole woollen collections that make use of the sweat-wicking, breathability and odour-absorbing qualities naturally inherent in wool.

“Traditionally wool was seen in a negative way – people remembered scratchy jumpers and skirts from the World War II era. But there is a new demand for Merino wool from the ‘next to skin’ leisurewear sector,” notes Norm Smith, owner of Glenwood Merinos in Wellington, New South Wales. “We produce a magnificent product that is completely biodegradable and recyclable, and is being used in new ways for a new generation.”

Smith is a fourth-generation wool farmer, and together with his wife Pip runs a 12,000 Merino stud and an online retail outlet selling fine Merino scarves, LoveMerino.

The couple have also made sure to tap into another growing consumer trend: provenance.

“All our wool is fully traceable, with every fibre of our scarves originating from Glenwood,” says Smith. “And those who buy our wool can also prove provenance to their customers – every farm has a story.” 

Fast Facts

Merino

The Australian Merino was originally bred from the Spanish Merino, brought to Australia in 1797 from South Africa

70%

In the mid-1990s about 20 per cent of Australia’s greasy wool went to China, but this has grown to well over 70 per cent today APRIL/MAY 2019

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A strong comeback

While Smith and his family are enjoying the good times now, he still keenly remembers the pain that spread throughout the country when the wool industry collapsed 28 years ago, in February 1991. Described by Charles Massy in his book Breaking the Sheep’s Back as “the biggest corporate-business disaster in Australian history,” the crash of the Australian Wool Corporation’s (predecessor of AWI) reserve price scheme devasted the industry.

“We were being paid by the government to euthanise our sheep, and the poor quality of the wool meant we burnt a lot of bridges in key markets such as the EU,” says Smith. “It’s taken us over 20 years to rebuild our reputation and develop demand again.”

Smith, like many farmers, turned to alternative sources of income, such as creating his own products and producing lamb. In fact, where once wool was 90 per cent of his business, it is now evenly split with lamb production.

“Lamb prices have dramatically increased in recent years and there continues to be a growing demand for it,” says Will McLachlan, a fifthgeneration farmer who began working with his father on their family property, Rosebank, in South Australia two and a half years ago.

“Lambs are a significant piece of our business now, but we also work to get more wool from each of our sheep.”

Genetics play a strong part in today’s wool industry, with DNA testing able to predict things such as how much a lamb will grow, its resistance to infection and potential fleece weight. Though not a perfect science, breeding traits in and out of sheep can also bring in extra revenue. “Our ewe lambs are worth more for breeding than selling for meat,” says McLachlan.

A woolly debate

However, challenging Australia’s hard-fought return to the top of the global wool bale are a passionate group of people who are hard to ignore: animal activists.

“The mulesing debate is starting to drive consumers towards ethically produced wool,” explains Rick Maybury, COO of Australian Wool Network, Australia’s largest independent wool marketer. “We need to help farmers find alternatives – animal welfare bodies represent a big challenge to the industry in the coming years.”

Already banned in New Zealand, mulesing has been a standard husbandry practice in Australia since 1927.

Mulesing involves cutting a patch of skin away from the tail and breech of a very young lamb, so a scar of stretched skin

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C L O C K W I S E F R O M L E F T: F I N E LOVEMERINO WOOLEN SCARF PRODUCED BY GLENWOOD MERINOS IN WELLINGTON, N E W S O U T H WA L E S ; S H E E P SHEARING; EWE LAMB AND YOUNG WOMAN WEARING LAMBSWOOL PRODUCTS; SPINNING WOOL IN THE FA C T O RY; A U S T R A L I A N W O O L I N N O VAT I O N T E C H N I C A L WEAR SPORTS SHIRT

grows back. The pink skin, with no wool, stays clean and dry and is unattractive to blowflies, whose eggs can cause flystrike – a condition that can be fatal.

“We stopped mulesing in 2005 due to the changing sentiment of consumers and attacks from animal rights groups, but most farmers continue the practice,” says Smith.

AWI’s longer term ambition is to work with woolgrowers to eliminate the need for mulesing, yet despite spending up to $40 million on research it has not found a solution.

But in 2018 it became evident that the market is demanding an end to the practice, with a $1 premium difference being paid on non-mulesed lots at auction.

Robots in the shed

Despite its past and present challenges, today the wool industry is strong and looking to the future. AWI is investing in research in multiple areas, including applications of artificial intelligence and machine learning across the supply chain, electronic sheep tags that will act as virtual fences, and the use of robotics in the beloved shearing shed.

“Shearing remains a very manual part of the supply chain, and finding shearers is getting tougher every year,” says Maybury. Australia has 73 million sheep, but only 2,800 shearers – five times fewer than 30 years ago. Many were pulled towards the resources boom to work in mines, and New Zealanders, who traditionally made up half the shearing workforce, are finding better wages at home.

The robotics lab at the University of Technology Sydney is currently conducting a nine-month scoping study for the AWI aided by a 3D printed sheep, Shauna. Mechanical robot arms use data to reconstruct what the sheep looks like without wool to figure out where to shear. The team believes robots could be used in conjunction with manual shearing methods, not replace shearers altogether.

“When robotics was looked at in the past the cost was prohibitive, but it’s a more realistic option today,” explains Maybury. “The cost curve has come down enough that the wider industry could adopt a commercialised program.”

Wool comprises only 3 per cent of the global textile market, but Australian Merino wool remains a world leader in an increasingly important sector.

Biodegradable, breathable and fashionable, wool may just be the textile of the future.

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Pork Industry

Pork talk WE DELVE INTO THE PORK REVOLUTION AND SEE WHAT’S HAPPENING AT THE FOREFRONT OF THIS BURGEONING INDUSTRY.

“Get some pork on your fork” and “Pork, the other white meat” are two memorable taglines from industry marketing campaigns over the decades, but today there’s a quiet revolution going on in the field of Australian pork.

On average, Australians eat 27.9 kilograms of pork per year – it became our second favourite meat after chicken, superseding beef, just a few years ago. Some of this increase in consumption has been driven by new trends such as the demand for gourmet bacon and prosciutto, but there are also crazes like the ketogenic diet which has made crackling popular as a snack food.

According to Australian Pork Limited CEO Andrew Spencer, “Fresh pork has been increasing in popularity over the last few years. Trimmed pork is low in fat and has more iron than chicken but not as much as beef and lamb.

Then there is the versatility of pork – a lot of chefs have picked up on it and realised that a lot of new things can be presented from pork cuts.”

While only comprising around 10 per cent of total production, a growing trend is the rise of (often small scale) ethical pork production – raising pigs outdoors where they can exhibit the full range of animal behaviours that come naturally to them. Breeds such as the Large White and Landrace have over the years become adapted to being raised intensively indoors and tend to do poorly in a free-range situation. This has led to a small but growing 

Darren Baguley Darren specialises in the fields of technology, mining, agriculture, energy and business.

APRIL/MAY 2019

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resurgence in traditional breeds such as the English Large Black, Berkshire, Wessex Saddleback and Tamworth that are well adapted to being raised outdoors.

The most famous of the new breed of artisanal freerangers is former Sydney Morning Herald food critic turned farmer Matthew Evans, star of long-running SBS series Gourmet Farmer. At the smaller end of the scale, Evans has three rare Wessex Saddleback sows – Evita, Jackie and Audrey – and one boar, Barry, which turn off around 50 free-range pigs per year. Not all of Evans’ 70-acre property, Fat Pig Farm, is suitable for raising pigs, but only one tenth of it at any one time will have the animals on it.

“We put the pigs into the paddock and move them when they need fresh grass,” Evans says, “so they can exhibit natural species-specific behaviour. Ducks get to swim in their duck pond, pigs get to root up the soil, dig, forage and nest, etc.”

While Evans now only sells his pork through the on-farm restaurant, he was an early adopter of value-adding practices. “[As a] small scale producer, [we] had to do a highvalue-add product. Can’t sell pigs at market or to butcher for the same price as pork rillette or our all-meat sausage – a sausage with just meat, no fillers, no starch, no sachets of flavour,” he explains. “The best compliment I ever got was from a guy selling potatoes: your sausages are too meaty.”

Tammi Jonas, of Jonai Farms, is an artisanal producer also helping to preserve a rare heritage breed, the English Large Black. “We have two boars and 12 sows on 69 acres

Fast Facts

5.4million

5.4 million pigs are processed in Australia every year

45,000

There are more than 3,000 pig producers in Australia, ranging from large commercial producers with 45,000 pigs in sheds to artisanal producers with just a handful of pigs

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FA R M E R A N D S TA R O F S B S S E R I E S G O U R M E T FA R M E R M AT T H E W E VA N S

of volcanic soil country, just outside Daylesford in Victoria, which we use to produce a whole range of fresh pork and smallgoods products as well as bone broth,” says Jonas.

When Jonai Farms had difficulties with getting the farm’s produce butchered to specification, Jonas apprenticed to a local butcher and crowdfunded the money needed to build a boning room on farm. The result has been extremely successful. About 10 per cent of Jonai Farms’ production is sold through the farmgate shop but “the rest is sold 

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Pork Industry

PIGS GRAZING AROUND F R E E - R A N G E P I G FA R M EXTRAORDINARY PORK

through a Community Supported Agriculture (CSA) program. We have 85 people signed up for a year to get between three and 10 kilograms of our product. Customers are spread throughout regional Victoria and Melbourne, where there’s 75 people on a 20-year waiting list.”

If there is one common theme among free-range pig producers, besides their ethical approach to animal raising, it would be their devotion to the land. If kept on the same patch of ground for too long, pigs can be incredibly destructive. That’s why Evans and Jonas practice planned grazing – as do Dubbo-based free-range pig farmers Michael and Alex Hicks of Extraordinary Pork.

Michael studied Holistic Management™ at university and his wife, Alex, grew up on a holistically managed family farm near Orange. So it’s no surprise that when they decided to purchase 350 acres near Dubbo they were focused on regenerating the landscape, which included areas of sodic soils. Holistic Management™ is a decisionmaking framework developed by Zimbabwean biologist, politician and soldier Allan Savory. It enables landholders to make balanced decisions that are socially, financially and environmentally sound in both the short and the long term.

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The Hickses run 16 rare Berkshire sows and an even rarer Duroc boar on 120 of their 350 acres, and sell their meat through several outlets in Sydney and Central West New South Wales as well as their own CSA. According to Michael, “We focus on regenerating the landscape while providing the best life possible for the animals and a good life for ourselves. For us, those morals are exceptionally important. It is all about the animals, which means if we need to move the pigs today to not damage our land, then they get moved today.

“We focus on doing this very, very well, and in return the animal rewards you. Animals act out, and we just have to listen and observe because they do what they do for a reason. For example, piglets react to how the sow is behaving. If the sow is upset and agitated, then the piglets are, too. If you make the sow as happy as she can be, it translates into the paddock.”

While still a small part of the overall market, “it’s a really exciting thing to see all these producers bobbing up at farmers’ markets, focused on ethically raising free-range pigs who are free to dig and forage and nest,” says Evans. “Who would have thought nature would get it so right?”

Property Biz.

A secret weapon THOUSANDS OF AUSTRALIANS ARE CHOOSING DEFENCE HOUSING AUSTRALIA TO PROTECT THEIR FINANCIAL FREEDOM. Investing in residential real estate can be a roller-coaster ride. There are the highs of rising rents and skyrocketing property values, but also the lows of a cooling market.

Ask the average Australian investor how their portfolio was doing a couple of years ago and the answer would have been an enthusiastic: “The only way is up!”

Today, the scene is more subdued.

By December, annual dwelling values in Melbourne had fallen by 7 per cent and in Sydney by 8.9 per cent according to CoreLogic data. In turn, rents have also softened.

It is this rocky ride, coupled with the usual stresses of being a landlord, that has turned some investors to buying property through Defence Housing Australia (DHA), where rents are guaranteed and tenancies are long.

But while the strategy is touted as “one of the most secure property investments available in Australia” on dha.gov.au, it is far

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from a get-rich-quick plan, with some industry insiders labelling it “lazy“ investing. The reason the Federal Government offers these humble homes for civilians to buy is simple: the department just can’t afford to own them all.

“DHA manages in excess of 19,000 properties around Australia, and that portfolio is worth about $11 billion. It’s a sizeable sum under management, and for us to hold all that is really not economical,” says Chris Perry, director of investor sales for DHA.

Why take this non-traditional investment route?

“It’s a great opportunity for investors to purchase a residential property – knowing it’s then going to be leased back to a government business for a long term; anywhere from six, nine or 12 years. And to know that throughout the lease it will be occupied by defence members and maintained by DHA,” Perry says.

Kirsten Craze Kirsten Craze is a freelance journalist who has been writing about property in Australia and overseas for more than 15 years.

Property Biz.

Depending on the region, and how many homes DHA needs in an area, a property might be released back to the owner to move into or sell. Owners can sell mid-lease, but the tenancy period remains.

“You needn’t worry about re-tenanting and we guarantee the rent throughout the lease – with a built-in rental floor,” adds Perry. “So the rent that the investor buys the property with – that’s the worst the rent’s ever going to be.”

Where’s the catch?

When real estate spruikers offer guaranteed rental returns and free renovations, investors are taught to be cautious. But Perry says there really are no hidden nasties with DHA: “People think it’s too good to be true. They think, ‘How can you guarantee the rent? How can you do all the maintenance on the property?’

“We’ve got a long-term contract with the department to provide housing for their members, and because of the certainty around that contract, and the fact we need to have a large portfolio in these locations for the long term, we can offer investors certainty.”

While not a catch, there is a surprise. DHA’s management fees are 16.5 per cent for a freestanding property and 13 per cent for a

strata property. Although significantly higher than traditional property manager fees, Perry says investors should compare apples with apples – not oranges.

“You might get a property manager at 8 to 10 per cent, but they are literally just doing the bare minimum. Then there are additional charges like advertising costs, re-letting fees and maintenance,” he explains, adding that at the end of a lease term, DHA undertakes renovations and repairs to bring the home up to selling standards.

In 2017 DHA engaged BIS Oxford Economics to compare its fees with typical real estate agent charges and additional costs. The outcome showed DHA’s fees were “notably lower”.

Why it’s not for everyone

Several buyer’s agents unwilling to go on record say adding a DHA home to your property portfolio is a “lazy” investment.

“If they mean lazy in that you don’t have to do a lot, then I’d agree with that,” Perry argues. “Where buyer’s agents may be coming from is, it is not something that you can add value to yourself.”

Property consultant Alan Yeung of Sydneybased firm Location Property Group explains  APRIL/MAY 2019

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fact box • Not all DHA properties are large homes based in regional or outer ring metropolitan areas. Although they are generally 30 kilometres from an ADF base, some are inner-city onebedroom apartments • The majority of DHA investors have no connection to the defence forces at all • While shorter lease terms of three or six years are possible, the standard terms are nine or 12 years

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that just like the stock market, there are ‘safe’ investments and ‘high risk’ investments: “It’s like buying into tech shares, they fluctuate and you can win or lose. If you buy more conventional shares like BHP then they’re a safer bet, but you won’t make millions.”

Perry says people need to ask themselves what type of investor they want to be: “Do you want to have to do renovations, or be involved in intimately managing the day-to-day aspects of the investment?”

An investor’s story

Alison Crouch bought her first DHA investment just outside of Canberra 15 years ago, and since then has bought two more.

“We were attracted by the security: having the guaranteed rental income. Plus we were worried about rental vacancies and people trashing the place,” she says. A professional in the mortgage-broking industry, Crouch says she and her tradie husband Mark always saw property investing as a long game. “I deal with investors every day, and I find that people invest for different reasons. Some invest for

cash flow, others invest for capital growth and for some it’s a retirement strategy. Others want to get rich – it’s all different.”

After years of dealing with buyer’s agents, Crouch says she knew why many industry insiders looked down on DHA investments.

“They’re after the quick capital growth,” she says. “They’re charging $10,000, sometimes $15,000, to purchase a property for someone, so they know their buyers want value for that.

“What I hear, falsely, about DHA is that the properties are ‘set at a premium price’ and they’re non-negotiable. Sure, it’s a drawback for some, so is the high management fee. But if you want a long-term, secure investment, then DHA is a good strategy.

“If you’re after a short-term flip, with quick returns, then it’s not for you. For us, it’s paid off in spades.”

The mum-of-one says she wants to be an investor, not a landlord, so the DHA deal suits her: “I don’t have time to manage my properties or chase real estate agents. Even if I did have the time, I don’t want to! I want to be travelling and enjoying my life.”

AusBiz. Promotion

CAREFLIGHT FLYING INTO NEW TERRITORIES WITH A NEW CEO AT THE HELM AND ENORMOUS LEVELS OF GROWTH, AEROMEDICAL ORGANISATION CAREFLIGHT IS FINDING NEW WAYS TO PARTNER WITH BUSINESSES.

Mick Frewen

CareFlight CEO Mick Frewen believes revenue diversification is key for charities to survive.

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AusBiz. Promotion

Introducing Mick Frewen

Joining CareFlight in May 2018, CEO Mick Frewen came on-board at a pivotal period in the charity’s history. Coming off a 10-year management career with the world’s largest medical and travel security assistance company, International SOS, and with 20 years in the special forces before that, the former Lieutenant Colonel believes his previous experience made the transition to CareFlight a natural one.

“You need to be able to relate to your staff, like the pilot and the air crew officer, to understand their roles,” he reflects. “It’s even easier when you can show them that you have been where they are, too – that you’ve sat in the back of the helicopter and you’ve jumped out of the aeroplane. My experience has helped a lot on that side.”

During his time at CareFlight, one of the more surprising things Frewen has discovered is the common misconception people sometimes have about the organisation.

“Most people, if you meet them in the street or at a dinner party and they hear that you work for CareFlight, say ‘Oh yeah, the helicopter that flies around Sydney helping people.’ And they’re right, that is where we started, it’s our DNA,” he says. “But today we do so much more than that – it’s the complexity of what we do, across a variety of different aircraft and geographies, that makes CareFlight one of the more interesting aviation organisations in Australia.”

Mission of mercy

Starting in 1986 with a single helicopter, CareFlight operations now span the country with a

fleet of medical jets, turbo-prop aeroplanes, helicopters, road vehicles and pioneering mobile education simulators. From urban beginnings, today’s organisation is just as focused on helping regional and remote Australian communities get access to the quality care they need.

“We have the rapid response helicopter in Sydney that has an average response time from tasking of only four minutes,” Frewen explains. “We need to get to the patient as quickly as possible and commence treatment on scene to improve patient recovery prospects.

“Then there are the rescue helicopters, that can winch you out of the ocean or out of a canyon, which is what we do up in the Northern Territory and for the oil, gas and mining industry. Our jets, turbo-prop and rotary wing aircraft 

Fast Facts

8,500

In 2018, 8,500 patients were cared for nationally on helicopters, jets, propeller aircraft and road vehicles. This was a 40 per cent increase from the year before.

50

More than 50 MediSim Trauma Care Workshops were brought to first responders working in remote locations all over Australia in 2018 thanks to sponsors, donations and contributions from the proceeds of oil, gas and mining service agreements.

APRIL/MAY 2019

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AusBiz. Promotion ONE OF THE CAREFLIGHT’S FLEET OF TURBO-PROP AIRCRAFT

CAREFLIGHT WINCH MISSION OFF GROOTE EYLANDT

enable us to move critically sick patients within Australia and overseas while providing emergency care, as well as help low acuity patients who need to be transferred to hospital for specialised care.”

Over the past 12 months CareFlight has also invested in its people, growing by almost a quarter to now employ more than 550 full- and parttime staff, the largest number of whom are devoted clinical specialists and aeromedical professionals.

Throughout this period of change, what has remained upfront and foremost is the organisation’s mission to save lives, speed recovery and dedicatedly serve the community.

The future of aeromedical

Like most charities, CareFlight has traditionally relied on the public for their support in order to deliver its operations. But as the fundraising space has become increasingly competitive, Frewen is only too aware of the need to seek funding opportunities in new markets, so CareFlight can continue to deliver its community services into the future.

“I think it’s a challenge that presents for all charitable organisations,” he says, “that traditional fundraising,

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although still effective, won’t in the longer term meet all of our funding needs. CareFlight has to continue to look at being more creative and innovative to ensure we have the revenue to continue delivering our mission and social purpose, so for us that means diversification.”

No better example, he adds, is CareFlight’s contract for the Asia-Pacific region’s only fully integrated aeromedical support to oil and gas services, located more than 290 kilometres off the Western Australia coastline.

“Our paramedics work out on the oil and gas facilities, and in instances of a medical emergency, they work with our 24/7 HelpPoint coordination centre and our team of emergency specialists to get workers on the rig to the shore,” says Frewen. “We operate in our own and partner helicopters, jets and turbo-prop aircraft, so we’re able to put our clinical team in the back of the most appropriate aeromedical aircraft and move injured workers from remote areas in north WA and the NT, to a hospital in Perth or Darwin.

“It’s about leveraging the skill set we already have in the oil, gas and mining sectors for organisations who value a fully integrated aeromedical model

delivered by one trusted partner.

“We’ve already been able to modify all of our jets to carry neonatal cots from the proceeds of some of these new operations, and we are now looking to introduce some additional aeromedical helicopters to support remote Australian communities.”

Since 2010, CareFlight has been servicing the Top End on behalf of the Northern Territory Government.

Proceeds from this contract have allowed CareFlight to invest in a range of community initiatives such as 50 free MediSim Trauma Workshops across Australia each year, building resilience in remote communities.

“Having these contracts really allows us to do far more to meet our social purpose in Australian communities, and I think that is a great thing,” Frewen says. “My vision is that we continue to grow, but that we grow for the right reasons and in the right way.

“We are investing a lot to enable this growth, we’re not trying to grow on a shoestring, we’re positively investing in building depth. We would love to continue to grow so we can continue to reinvest proceeds back into the community, and we are always looking to work with likeminded organisations.”

Save lives, speed recovery and serve the community

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Finance

Ryan Watson Tribeca Financial’s CEO knows all about money management.

Don’t stress

Do you feel you have control over your finances? Do you have enough savings in reserve to absorb a financial shock? Do you have the freedom to be able to make choices to enjoy life? If you answered “no“ to any of these questions, you’re financially stressed. And you’re not alone. One in three Australians report that they feel the same. For full-time workers, it increases to one in two.

We’re walking a tightrope in Australia and no one wants to admit there’s a problem. So, what exactly does financial stress look like?

A few of the most common symptoms of financial stress include: • Arguing with a partner over money – financial issues are consistently reported as the leading cause of marital breakdown; • Worrying about how you will pay off a mortgage; • Frequent illness – stress lowers your immune system, increasing your chance of sickness; • Sleeping issues – if financially stressed, you’re eight times more likely to have trouble sleeping; • Lack of concentration; • Low productivity.

If left untreated, financial stress has also been known to cause several mental health issues, such as anxiety and depression.

It’s clear that financial stress is no laughing matter. But how can you become “financially destressed”?

I’ve included my top three tips for ensuring that you are “financially well” below.

1. Set your goals

We rarely ever take time to evaluate what we really want from life.

An effective way to start thinking about your own short- to long-term goals is to consider your “four Ls”: Life, Love, Learn and Legacy.

• Life: what lifestyle do you want to have now and in 10 years’ time?

• Love: what are your important relationships? How will you nurture them and add value to them?

• Learn: what are your passions that you’d like to get better at, or things you’d like to try in life?

• Legacy: what do you want to contribute or give back to society or those around you?

Using your answers, think about how you want your life to look in 10 or five years’ time. This will form your goal and give you something to work towards when sorting out your financial life.

2. Understand your cashflow It might seem obvious, but very few people know their net financial position at the end of each month.

And you won’t know what to change if you don’t know what’s wrong.

There are three things every person needs to know to ensure they’re financially “on track” – what you earn, what you owe and what you save.

An easy way to calculate this is to subtract your monthly spend from your after-tax income. The result will be your net financial position. If you’re breaking even, you aren’t saving anything. And if your number is in the negatives, you’re spending more than you can afford.

3. Grow your savings bucket

Now that you understand your financial position, it’s time to grow your savings each month to at least 20 per cent of your after-tax income.

It might seem impossible at first, but becoming a saver is simply about changing your habits.

The easiest way to start saving is by structuring your bank accounts appropriately. Set up automatic transfers that move 20 per cent of your salary into your savings each pay day, then establish a discretionary account with a certain amount transferred into it each week. This account will be what you have to spend on discretionary items each week, limiting the amount you spend while still giving you the freedom to spend it on what you want.

APRIL/MAY 2019

39

Puzzles

CROSSWORD

C I F N W O T Y K N U F W

N N Y Q E N D C B E M A S

A G K N E L O O L H F M W

S L D L I M L B R F D I E

I I A I E A U I L E L L E

U T M D V O R E V S I Y T

N K Y O R A S B W E W M U

E J E T N S D G N I S M Y

SOLUTIONS:

S L D L I M L B R F D I E

I I A I E A U I L E L L E

U T M D V O R E V S I Y T

N K Y O R A S B W E W M U

E J E T N S D G N I S M Y

AusBiz.

A G K N E L O O L H F M W

TRIO TROUBLE WAFFLES WILD

N N Y Q E N D C B E M A S

NUISANCE SEVILLE SIMON SING SONGS STAR

C I F N W O T Y K N U F W

CHIPMUNK COMEDY DAVID FAMILY FUN FUNKY TOWN

E M U Q E O A L V I N N M

R R N H I S G N O S H W U

A A T R C H I P M U N K S

T H T R G N I V O L T H I

E M U Q E O A L V I N N M

SWEET TALENT THEODORE

S C G R G U I T A R W J C

R R N H I S G N O S H W U

GUITAR LOVING MUSIC

Find all the words listed hidden in the grid of letters. They can be found in straight lines up, down, forwards, backwards or even diagonally. Theme: ALVIN AND THE CHIPMUNKS

A A T R C H I P M U N K S

ALVIN BRAINY CHARMING

WORD SEARCH

T H T R G N I V O L T H I

40

DOWN 1. Chattering 2. Slicer 3. Miniature (plant) 4. Risked 5. Shades of gold 6. Striking with foot 12. Haul with effort 15. Ashamed 16. Forsake 17. Broke out suddenly 19. Outcome 20. Lay cosily 22. Modify 23. Gangway

S C G R G U I T A R W J C

ACROSS 1. Pulled 5. Ox harness 7. Make on loom 8. NZ bird 9. Delicate fabric 10. Nonconformist 11. Alone, by ...

13. Central US state 14. Car shed 18. Blueprint 21. Molten rock 22. Sayings 24. Himalayan republic 25. Wearing footwear 26. Travel by yacht 27. Overly fat 28. Garden of Creation 29. Ponged