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Volume 10, Wednesday, February 13, 2013
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Roxby reels after latest job cuts By Millie Thomas lympic Dam was rocked again last week by job cuts to both BHP Billiton employees and contractors.
O
According to Darryl Cuzzubo, BHP Billiton Asset President, the company has worked through the process of determining which roles are no longer required within the company since Wednesday last week, with announcements made on Friday. Sixty BHP Billiton employees and 20 contractors were cut within the functions department, with further cuts planned for the operations
department where Mr Cuzzubo said it would be a smaller number of BHP Billiton employees and larger number of contractors. More definite numbers were not yet available. Mr Cuzzubo blamed commodity prices for the latest job cut hit. “If you look at our commodity prices, so copper and in particular uranium, they have come off their previous highs, and the strong Australian dollar. So we’re responding to that,” he told The Monitor last week. When asked if Olympic Dam could expect more job losses, Mr Cuzzubo said it was dependent on commodity prices.
“Obviously we wish we could answer that, but what we can say is two things; one is, we do have to keep reducing our costs, but our focus is on goods and services first,” he said. “The second thing is that we made these decisions in the best long term interest of Olympic Dam.” When asked about the possibility of rebuilding the workforce at Olympic Dam should commodity prices strengthen and remain at a steady high, Mr Cuzzubo said BHP Billiton needed to first make current operations at Olympic Dam viable in order to attract investment to expand. “Then if we expand for sure that
Downturn hits local real estate market
T
he current rental vacancy rate of homes and units in Roxby Downs is at almost five per cent, with more than 80 vacant residential properties now available. Median house prices have also dropped by as much as $100,000 during the last quarter of last year, according to recent figures released by the Real Estate Institute of South Australia (REISA). The number of homes sold also dropped from 22 in the third quarter of 2012 to only five in the last quarter. Many local tenants are still paying the same high rates of rent as they were six months ago – when a single vacant house was lucky to find. Those renting houses argue prices for properties that may have been appropriate under earlier market conditions last year, are now considered excessive in the current local climate. One local tenant continues to
pay well over $500 per week for a three bedroom unit. “My family and I have lived in the same rental for over two years now,” the tenant said. “While the small sized house was okay to begin with, now we are planning to grow our family there’s simply not enough room.” With the current lease nearing its end, the family has already started reassessing their living arrangements, as more and more local rental options become available. Current residential listings suggest the market has dropped decidedly, with four bedroom houses starting from only $380 per week, a price that was unheard of in Roxby Downs six months ago. According to local property manager Anne Clampett from Austwide Property Services, rental prices should have already started to come down. “I have already put rents down and I think if you look on the web sites overall, prices have come down although I think there is a
way to go and some agents seem to be rather slow in reacting,” Ms Clampett told The Monitor. Ms Clampett explained rents can fluctuate depending on vacancies in the area, how long it takes to rent vacant properties and attributes of the property. It is also dependent on variations in supply and demand. “The market rent prices are not determined by owner’s costs,” she emphasised. “Therefore in a lot of cases the rent is set by the property manager in response to their knowledge of local demand.” Ms Clampett said this is not the first time Roxby Downs has seen a sudden drop in the real estate market, with the last in her memory approximately four years ago. “This is the nature of mining towns; they go in cycles of ‘boom and bust’,” she said. While Ms Clampett said generally rent prices are not negotiable once in a signed contract, it never hurts to ask the question. “Landlords should appreciate
good tenants and if they have long term, good tenants in their properties in circumstances such as these they should consider rent reductions without the tenant having to ask,” she said. “This creates goodwill and encourages the tenant to continue looking after the property.” “Tenants who have been in a property for some time may consider approaching their agent/owner with a polite, reasonable request to negotiate the rent.” She recommended approaching landlords and property managers with facts, not emotions. The table to the right shows the fluctuation in local real estate prices over the past six years. Former Roxby Down’s real estate agent Ali Webber said the apparent drop in local house prices could be attributed to record house sales in the third quarter of last year, raising the average median house prices across the board. Find out more on Page 10.
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brings employment, but our focus right now is to make sure the current operations are viable and can attract investment against other potential investments in BHP Billiton. “We have our challenges.” Mr Cuzzubo finished by stating, “Lots of good work has been done in reducing costs, and our focus is always on goods and services first. The last thing we do is reduce employees and contractors.” BHP Billiton now employs just over 1900 workers, plus a varying number of contractors, ranging between 1600 and 2600 people, depending on current operations.
ROXBY DOWNS MEDIAN HOUSE PRICES Year
Period
No. of Sales
2007 Quarter 1 2007 Quarter 2 2007 Quarter 3 2007 Quarter 4 2008 Quarter 1 2008 Quarter 2 2008 Quarter 3 2008 Quarter 4 2009 Quarter 1 2009 Quarter 2 2009 Quarter 3 2009 Quarter 4 2010 Quarter 1 2010 Quarter 2 2010 Quarter 3 2010 Quarter 4 2011 Quarter 1 2011 Quarter 2 2011 Quarter 3 2011 Quarter 4 2012 Quarter 1 2012 Quarter 2 2012 Quarter 3 2012 Quarter 4 Quarter 1 Quarter 2
Median Sale
20 42 43 31 25 25 38 15 9 24 20 17 11 12 15 20 23 23 31 25 32 30 22 5 Quarter 3
360000 350750 360000 390000 445000 420154 426318 400000 377500 379211 372603 378834 360000 372500 390000 389500 395000 425000 420000 415000 447500 440000 487500 390000 Quarter 4