Latest Australian Economic & Business News

2008 US Presidential Election

2008-11-03T12:11:00.001+11:00

Australia's Growth Rate now 4.3% per year

2007-09-04T14:40:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia has recorded its highest annual rate of economic growth in three years, with the latest national accounts showing Australia's gross domestic product grew 0.9 per cent in the June quarter.

In a brief article today, the ABC reports that although the 0.9% is down from the surge of 1.6 per cent in the March quarter, it is stronger than widely expected. It comes as unemployment is down to record lows of 4.2% and inflation is safely within the Reserve Bank's 2% - 3% band.

It has been enough to take annual economic growth to 4.3 per cent, a rate unsurpassed since June 2004.

Growth in the last three months has been driven by business and government investment spending.

Household consumption has grown moderately, the housing sector has contracted slightly and the drought is still weighing on the performance of agriculture.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Energy Market Reform

2007-08-31T11:34:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Energy market reform and the development of best practice market arrangements will play a key role in the global effort to address climate change according to Australia’s Federal Industry Minister.

Addressing the first steering committee meeting of the Energy Regulation and Market Development Forum, an initiative of the Asia Pacific Partnership on Clean Development and Climate (APP), Macfarlane said it was crucial that countries had access to clean and affordable energy sources which could power economic growth without adverse effects on the environment.

The Forum is a unique opportunity for the six APP partner countries to pool energy market expertise and improve the efficiency and environmental performance of energy generation, transmission, distribution and end use in their economies.

These improvements will make a major contribution to the global effort to address climate change because together, APP countries represent more than half of global economic activity.

The Forum of senior energy market policy makers, regulators, producers and distributors takes place over two days on the Gold Coast with delegates from each of the six APP countries – China, India, Korea, Japan, the US and Australia.

It is one of more than 100 collaborative projects in emerging clean technologies, capacity building and research that the APP has undertaken since it was established in January 2006.

Australia's reform of its domestic energy market in the past decade had delivered benefits, adding $1.5 billion a year to the economy.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Defence to Support NASA Dawn Space Project

2007-08-27T09:22:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

A team of four personnel from the United States Air Force will visit Tennant Creek in the Northern Territory of Australia to monitor the launch of the National Aeronautical and Space Administration’s (NASA) Dawn spacecraft.

The US team will arrive at Alice Springs and travel to Tennant Creek where they will establish a small temporary ground station. Tennant Creek was selected as it affords the best view of the crucial booster separation phase of the launch.

As part of the same mission a United States Air Force NKC-135 aircraft will be operating out of Perth International Airport from mid September and flying over north-west Australia. The launch from Cape Canaveral is planned for between 19 September and 15 October depending on weather and atmospheric conditions. The Australian Defence Force will be providing local liaison support and assisting NASA with its organisational arrangements while the team is in Australia supporting the Dawn spacecraft launch.

This mission will attempt to answer questions about the formation of our Solar System. Data returned from the Dawn spacecraft could provide opportunities for significant breakthroughs in our knowledge of how the solar system formed.

Over the last decade Defence has supported five similar NASA missions as part of Australia’s ongoing cooperation with NASA.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Small Business R & D Spending Increases

2007-08-24T10:42:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Research and development by Australian small businesses has risen by 17 per cent to reach $1.3 billion, according to the Australian Bureau of Statistics (ABS).

The ABS reports R&D expenditure in small businesses reached $1,316 million in 2005-06, a solid improvement on the 2004-05 figures of $1,130 million.

Importantly R&D expenditure by micro-businesses (less than five employees) increased by 18 per cent to reach $354 million. Small business is spending more on R&D, developing new goods and opening up new markets.

In a global economy, small business has to be innovative to compete. The good news is Australian small business is taking on the best in the world and winning.

Australian R&D Tax Concessions offer:

a tax deduction of up to 125 per cent of expenditure incurred on R&D activities;

an R&D Incremental (175 per cent Premium) Tax Concession for certain companies that increase their grouped R&D expenditure; and

an R&D Tax Offset for companies with group turnover under $5 million and a group R&D expenditure of up to $1 million for the year.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

US Bank Moves Into Australia

2007-08-22T09:50:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

US investment bank Lazard has followed in the footsteps of the Lehman Brothers purchasing an established Australian investment bank in order to gain greater access to the Asia-Pacific region.

Lazard has purchased Carnegie Wylie for an undisclosed combination of cash and stock with the acquisition being effective immediately.

Lazard President, Mr Charles G. Ward III, said that the acquisition of Carnegie Wylie was another important step in the bank’s five-year strategy to expand its financial advisory business by geographies, and reinforce its commitment to provide premium service to clients.

The acquisition will allow Lazard to bring Australia’s top banking talent into the Lazard fold, to build on its existing Australian business faster, inherit an established presence and premier brand in Melbourne, Sydney and Brisbane, and strengthen its access in the important Asia Pacific region.

Lazard's existing Sydney-based financial advisory team will join Carnegie Wylie. The combined group will be lead by co-founder and principal of Carnegie Wylie, Mr John Wylie.

Carnegie Wylie co-founder and principal, Mr Mark Carnegie has been appointed CEO of Lazard’s Australian private equity business and Lazard's Australian asset management business will be managed separately.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

$ 51 BILLION DEFENCE CAPABILITY PLAN FOR 2006-2016

2006-06-20T10:04:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian government has today released its the public version of the Defence Capability Plan (DCP) 2006-16. It outlines more than $51 billion of major capital equipment proposals which are planned to be evaluated by Government over the next decade. This DCP provides many opportunities for US based businesses seeking entry into the Australian defence procurement program. The proposals it contains are essential to deliver the capability required by the Australian Defence Force (ADF) to maintain Australia’s security.

The recent 2006/2007 Federal Budget announced investment of an additional $2.4 billion over financial years 2011-12 to 2015-16. This continues the additional 3 per cent funding over 10 years announced by the Government in the 2000 Defence White Paper. The additional funding by Government enables the DCP 2006-16 to address the rise in the price of military platforms and technology. Providing a public version of the Defence Capability Plan to Australian industry is a key part of ensuring that the ADF will continue to have the major equipment and systems it needs to do its job.

The DCP 2006-16 is a major document produced periodically from an ongoing review of defence capability requirements. Australia’s National Security – A Defence Update 2005 fed into this review process and largely influenced the DCP 2006–16. This DCP brings Australia’s equipment acquisition and capability development strategy over the next decade into line with its increasingly complex security situation. The DCP will deliver the capabilities required by the ADF to maintain Australia’s security and strengthen its ability to promote national interests. The DCP is based on advising capability effects and outcomes rather than platform replacement. This change from being solution focused to outcome focused is associated with improved capability development processes under the successful Kinnaird reforms. This DCP retains a degree of planning flexibility to manage the risk of unforeseeable and uncontrollable events occurring through changes in the strategic environment, technological development and the ability of defence industry to meet global demand.

Some of the major features of this public version of the DCP are:

* Modifying helicopter plans to reduce the number of aircraft types and to create a common joint training and management system. More than $3.7 billion of project funding has been set aside to achieve this aim.

* The addition of more than $500 million of new naval surface capability projects to enhance the ANZAC class air search radar system and to develop undersea warfare detection capabilities, and sea mine counter-measures in 2017 to 2019.

* A 40 per cent boost in funding for Army networking projects as part of the Hardened and Networked Army initiative. The networking enhancements will support Network Centric Warfare capability and are to be introduced across the majority of Army units. Better understanding of the requirements of the Land 17 phase 1 project means that Army’s 105mm and 155mm artillery replacement will be safely deferred for three years whilst Army’s Ground Based Air Defence capability will be enhanced from around 2018 to 2020 in a new project valued at more than $750 million .

* Continuing the projects to support Australia’s air combat capability - including a $350 to $450 million mid-life upgrade of the Hawk lead-in fighter in 2017 to 2019 and future upgrades for the Wedgetail Airborne Early Warning and Control aircraft. Prudent planning sees additional provision made for the F/A-18 Hornet structural refurbishment to ensure sufficient aircraft maintain operational capability in the transition to the New Air Combat Capability.

* Building on the Government’s recent decision to acquire a heavy airlift capability, the DCP retains around $1 billion to refurbish or replace the C-130H Hercules and Caribou aircraft fleets. More detailed analysis of the lifespan of the Orion AP-3C means that the decision to refurbish or replace the ADF’s maritime patrol aircraft can be deferred for 2 years. This DCP also sees increased funding of more than $250 million for the Multi-Mission UAV project – AIR 7000 Phase 1B.

* Greater funding for the ADF’s military satellite communications capability with more than $1 billion to be invested in next generation satellite and ground station infrastructure to ensure continuity of service and flexibility through digital content.

* Continued improvements to Defence’s core enterprise systems including a new improved logistics management system project valued at more than $350 million and operational in 2012 to 2014.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

International Merchandise Imports to Australia - May 2006

2006-06-19T14:09:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The following table, released today by the Australian Bureau of Statistics (ABS) shows the various international merchandise imports brought into Australia during May 2006. All values are in $A.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australia To Purchase MRH 90 Helicopters

2006-06-19T11:26:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Government has approved a $ 2 billion acquisition of thirty-four MRH 90 helicopters to replace Navy’s Sea King and Army’s Black Hawk helicopters. The selection of the MRH 90 complements the Government’s decision in 2004 to acquire an initial twelve MRH 90 helicopters as Army’s additional troop lift helicopter. Delivery of the first twelve is scheduled from December 2007 through to December 2009.

The new twin-engine troop lift helicopters will provide opportunities for joint fleet management. These benefits include greater operational flexibility and efficiency through common operational, training and logistic systems and a capability to rotate personnel, aircraft, spare parts and role-specific equipment between troop lift, special operations and maritime support commitments.

The 34 additional MRH 90s will be assembled in Brisbane. As these MRH 90 aircraft will be assembled in Australia this acquisition of at least 34 aircraft will provide significant opportunities for Australian industry and the Australian Defence Force (ADF) will gain an operating capability within a relatively short time-frame.

The emphasis of the Australian industry package, worth $1.2 billion, is on the development and sustainment of critical aircraft mission system capability. The long term viability of the Australian MRH 90 assembly line will be maximized, ensuring greater development of the skill base required to support the MRH 90 into the future through a strategy aimed at promoting Australian industry as part of the Eurocopter global supply chain.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

OECD Report on Australia

2006-03-29T12:38:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

The following summary of Australia’s standing in the world economy – as assessed by the OECD - was printed in the “Sydney Morning Herald “ of 29 March 2006. The “Sydney Morning Herald” can be read on line at www.smh.com.au .The OECD report states that Australia has the world's 12th largest economy, and the 11th highest gross domestic product per capita in the world. During the past 12 years, the OECD estimates, the Australian economy was the eighth fastest growing economy in the world - behind only China, Ireland, India, South Korea, Poland and the Slovak Republic. Australia is mid-range when it comes to the average number of hours worked a year - 1816. Australian working hours increased in 2004 for the first time since 1998.

The hardest working workers in the developed world are the South Koreans, who averaged 2423 hours a year. The best rested are those in the Netherlands, who average 1357 hours a year.

The figures show the Australian economy does have some weakness. Its household savings rate, the proportion of income put away for a rainy day, was the only country among 15 rich nations that was in negative territory.

Australia is only one of six countries to have both a trade deficit on both physical goods and merchandise and on services.

Other countries with double deficits include Mexico, India, Italy, South Africa and Hungary.

Since the Howard Government came to office, the OECD estimates, Australia has experienced one of the lowest rates of export growth of all member countries. It is also at the bottom end of of the list of countries with exports of high- and medium-technology goods.

Australia was the fifth most generous nation, behind the US, Japan, Germany and France, with total aid commitments so far of $US200 million ($280 million).

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Growth Rate Steady at 3%

2006-02-22T08:05:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

With official interest rates in Australia remaining at 5.5% for the foreseeable future, forecasters at the Reserve Bank of Australia (RBA) are now expecting the annual growth rate of the economy to be around 3%. This is considered by most commentators to be below par and therefore the most likely move in interest rates – will next be downwards.

The local jobs market is tightening with a drop off in job advertisements over the past 3 months. But interestingly, despite the fall in advertisements generally, there has been an increase in job ads placed on the internet. The increase in advertisements in January was 6% - well above expectations with total ads year to date being 30% higher than over the corresponding period 12 months ago.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Export and Domestic Retail Sales Both Rise

2006-02-03T16:12:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

Both Australia's export trade as well as domestic trade have recorded growth over the December period.

The value of Australia's exports for the month grew 7% while imports only increased by 1%.

Domestic retail sales grew just 0.4% over the same month, which equated to total retail sales of $22.5 billion for December 2005.

Both sets of figures support the prospect for continuing economic growth during 2006, with inflation kept in check and interest rates remaining stable.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Inflation Well Within Target Range

2006-02-01T12:13:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia’s cost of living – as indicated through the Consumer Price Index (CPI) – has risen slightly over the 3 months ending 31 December 2005. The CPI rise was just 0.5%. This very slight increase has placed the annualised inflation rate at 2.8% for calendar year 2005. The low CPI increase is the smallest recorded for one 3 month period since 2004. The current inflation rate sits comfortably within the desired range set by the Reserve Bank of Australia, indicating that there is unlikely to any move in official interest rates in the short to medium term.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Wine Production Exceeding Demand

2006-01-31T14:27:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

The record year of 2003-04 for the Australian wine and grape industry was surpassed in 2004-05 with increases in harvest, crush and wine production levels. There were 1,925,490 tonnes of grapes crushed in 2004-05, an increase of 8,252 tonnes on the record crop of the previous year. Beverage wine production was a record 1,422.8 million litres, an increase of 1.3% on 2003-04. There was continued growth in the export of Australian produced wine, which reached 669.7 million litres during 2004-05, an increase of 14.6%. The value of these exports increased 8.9%, to $2.7b. Domestic sales of Australian wine also continued to grow, up 3.1%, to 430.1 million litres.

Estimates from the Vineyards 2005 collection show that season 2005 produced another record harvest. The industry appears to have fully recovered from the drought conditions experienced in 2003. Hectares of vines being cultivated increased again, from the record area last year of 164,181 hectares, to 166,665 hectares in 2005. The total area of vines bearing grapes increased from 150,561 hectares to 153,204 hectares, a rise of 1.8%. The area of non-bearing grapes decreased slightly in 2005, down 1.2% to 13,462 hectares.

The net increase in area planted under vines for 2004-05 (derived from vines planted and vines lost during the year) was 1,823 hectares, which was 10.0% less than the net increase recorded in 2003-04 (2,025 hectares).

The wine industry has recorded a second bumper year in a row, with harvest, crush and wine production levels rising above 2003-04 levels.

Figures released by the Australian Bureau of Statistics last Wednesday (January 25th) showed 1,925,490 tonnes of grapes were crushed in 2004-05 - up 8,252 tonnes on the record crop of the previous year.

Beverage wine production was a record 1,422.8 million litres, an increase of 1.3 per cent on 2003-04.

Australian producers exported 669.7 million litres over the year - an increase of 14.6 per cent, with the value of wine exports rising 8.9 per cent to $2.7 billion.

Domestic sales of Australian wine were also strong, rising 3.1 per cent over the year, to 430.1 million litres.

Importers brought in 22.1 million litres valued at $188.2 million - up 23.5 per cent from 2003-04.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Bank Buying Indiana Toll Road

2006-01-25T10:25:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

The continuing expansion of Australia’s Macquarie Bank into infrastructure projects around the world continues. Macquarie, along with its Spanish partner Cintra have now been named as the preferred bidder for a further US toll road. After having purchased, in partnership, the Chicago Skyway, the bank now seems set to hold a 50% stake in the Indiana Toll Road.

Press reports indicate that the consortium has offered $US3.85billion for a 75 year concession over the toll road.

The Governor of Indiana has expressed surprise at the size of the bid. This comes as other US state legislatures debate the cost benefit to their constituents of selling off state owned assets, especially the concern that government control over tolls will be removed and that “monopoly” roads used widely by the community, will be subjected to substantial annual toll increases.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

First Phase of $3Billion Defence Tender Released

2005-12-13T14:46:00.000+11:00

LATEST AUSTRALIAN BUSINESS NEWS

The first major phase of a $3 billion investment in the Australian Army's fleet of field vehicles has been released. The three separate Requests for Tender (RFT) have been released on 13 December to replace a vital fleet of Army trucks, four-wheel drives, trailers and modules for the Australian Army's high readiness units. The investment is part of Project Overlander - the largest land project in the Defence Capability Plan worth a total of $3 billion.

This current phase is worth up to $600 million and includes replacing the existing high readiness fleet of about 1400 heavy and light vehicles, 1300 trailers and 1200 specialist modules. The next phase will replace the rest of the Australian Army's vehicles, trailers and modules across Australia.

Project Overlander is a key part of the Government's Hardening and Networking strategy that will be released in detail later this month. Favourable consideration will be given to those companies who will assemble the vehicles in Australia. The request for tender for the trailer segment will be restricted to Australian-based manufacturers, plus those vehicle suppliers capable of supplying a proprietary trailer. The request for tender is tailored to encourage the production of trailers in Australia.

The RFT for all three fleet segments will close in May 2006 with detailed proposals presented to Government in 2007. The target date for delivery of the first of the vehicles is December 2009. Each RFT will also require offers to be made on support of the fleet, and will seek an agreement to guarantee the whole of life acquisition and logistic support of the new fleet, potentially for the next 30 years.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Simple & Safe Medical Development

2005-10-17T12:40:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

A world-class medical device, developed by the Brisbane,

Australia

based company Qlicksmart Pty Ltd, that makes scalpel blades a lot more safer was launched this week. The device, called the Sterile Blade Remover, enables the safe removal, containment and disposal of used scalpel blades from their handles - avoiding the risk and cost of injury and infection to hospital staff. The Qlicksmart innovation is an example of an Australian company thinking outside the box to deliver a medical device which has the potential to change safety practices in medical sectors worldwide. Qlicksmart has taken a good idea and pushed it through the design, development and manufacture stages to start distribution world-wide.

The medical devices sector is worth about $824 million in exports to Australia annually and employs more than 5500 people. This type of product realisation is a vital investment in the industry’s future. Established in Brisbane in 1994 Qlicksmart Pty Ltd is a small, cutting-edge medical device company which sells products in more than 43 countries.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Share Market Correction Makes Impact

2005-10-07T11:57:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian share market has suffered two days of decline, giving the market its largest fall since investors reacted to the impact of 9/11. After about 7 months of good, strong growth this year, the market has responded to what commentators are calling a “correction” – not a “crash”. Since March 2003 the Australian market has risen 60% with an 8% increase just in the last quarter.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Defence Industry Capability

2005-09-20T09:59:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

About 20 Australian companies are joining forces in London this week to promote Australian Defence industry capabilities at the largest tri-service defence exhibition in the world - the Defence Systems & Equipment International exhibition held in London's docklands area. A 'Team Australia' stand at the exhibition has been established to ensure as many companies as possible could be represented at this important defence exhibition, including many small companies that would otherwise not be able to be there.

The exhibition focuses on Defence, Emergency Services and Homeland Security sectors of industry and will showcase eight warships alongside. It is the most significant trade show of its type in the world and provides great networking and business opportunities on a very large scale. Australian industry will benefit from being involved through increased exposure of Australia’s niche capabilities to major international defence and security firms, as well as other potential customers,. The 'Team Australia' stand aims to increase other countries' knowledge of the depth and extent of Australian industry capabilities and demonstrate Australian Government support to the Defence industry.

Australian defence industry, whilst small, has niche capabilities that are equal to or leading the world. However, most of the major defence and security firms are based in the Northern Hemisphere. Whilst Australia has overcome many of the issues related to distance for European companies doing business with Australia, this is another opportunity for Australian companies to demonstrate that distance and time zones are no obstacles.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Energy from the Sea

2005-09-16T11:32:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

An innovative Australian company, Energetech, which is developing world-leading technology to generate power from wave energy, completed the first successful installation of one of their turbine units off the east coast of Australia, just south of Sydney at Port Kembla. A single unit has the potential to power 2,000 homes without producing greenhouse emissions. The company is currently working on a project for Rhode Island in the USA, and is also fielding interest from consumers in Spain, Mexico, Chile and Canada.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Uranium Sales Increase

2005-09-07T14:09:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia’s uranium export earnings jumped 30 per cent over the last financial year, increasing from $364 million to $475 million in 2004-05, according to the Australian Bureau of Agriculture and Resource Economics (ABARE) Mineral Statistics Report released on 7 September. Australian Industry Minister, Ian Macfarlane, said the growing global thirst for uranium was reflected in the ABARE figures which have not before recorded such a jump in demand for the commodity. Coking and steaming coal continue to top Australia’s resource export charts, with export earnings leaping ahead 65 per cent and 45 per cent respectively, but uranium is coming through as a potentially strong performer for Australia.

There are approximately 450 nuclear plants in 32 countries and the price of U308 (uranium oxide) has almost doubled in just the last 18 months. In January 2004 it was A$20 a pound compared with A$39 in August 2005.

The local industry is responding to this increasing global demand with reports from the Minerals Council that as many as 25 mining companies are now exploring for uranium in Australia’s Northern Territory. The ABARE report reported a record of $67.4 billion in mineral export earnings for 2004-05, an increase of nearly $15 billion or 29 per cent from the previous year

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Services Sector Shows Continuing Growth

2005-08-24T15:01:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian service industry sector, including retail, has shown continuing growth over the last recording period.

An index of Australian service industry performance rose to a six month high in July due to an increase in business at hotels, restaurants and retail outlets. The Australian Industry Group – a major employer association – has issued its latest data based on industry orders, sales, deliveries and inventory levels. The latest index shows that there has been a 2.6% in these base measures for the month June to July 2005. The Group has said that from the index it can ascertain that there is a continuing expansion of service industry activity.

Retail trade in particular has shown an increase of 1.3%, in the face of what was expected to have been a slow period, due to relatively mild winter weather and some apparent levelling off of overall consumer spending. The overall level of Australian retail spending was $17.2billion for the month of June.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Be Aware of Australia's Tough Quarantine Laws

2005-08-22T17:07:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

An international student and a first-time traveller have both learned an expensive lesson: — trying to break Australia’s tough quarantine rules doesn’t pay. The two cases, heard in Brisbane, resulted in fines totalling more than $14,000 for Quarantine and Customs breaches at Brisbane International Airport. The travellers also now have criminal records. In the first case, a university student who has been studying in Australia for three years tried to smuggle 1.5 kilograms of sausages from China after a trip home to visit his family. Quarantine officers discovered the sausages in his suitcase during X-ray inspection. Sausages could carry animal diseases such as foot and mouth into Australia — and could potentially devastate Australian native animals and its agriculture and export industries.

It’s been estimated that an outbreak of foot and mouth disease would cost $450 million in control measures, and would cause a $13 billion loss to Australia’s export earnings.

The second passenger, a 52-year-old woman visiting relatives in Australia, brought in a range of goods, also from China. Quarantine officers found the items including a live bamboo plant, apples and chicken meat, when her bags went through X-ray inspection. The goods could have brought with them insect pests, a range of plant diseases and bird flu, putting at risk Australia’s $30 billion-a-year agriculture export industries as well as its wildlife and environment.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Consumers Regain Confidence

2005-08-19T10:03:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Consumer confidence has come back strongly in Australia with a 7.6% rise recorded in August. This follows on from a slight dip in confidence reported in July – according to the Westpac Bank/Melbourne Institute’s latest Index of Consumer Sentiment. There had been concern about the possibility of the Reserve Bank of Australia (RBA) increasing interest rates, but over the past months that risk has been diminished. It is only last week that the Governor of the RBA stated that a rise in rates over the remainder of 2005 was unlikely.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

For sale - Two Major Government Entities

2005-08-18T16:30:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Telecommunications. The Australian Government is to move to the next stage of preparing for a sale of its majority holding in Telstra – Australia’s leading (formerly monopoly holding) - telecommunications company. The Government’s holding is worth around $30billion and should be of interest to major international telecommunications companies and related entities. The advice from the Telstra Scoping Study was that an appropriate return could be achieved, but that it would be dependent on a number of future variables, including:-

overall market conditions,
expected demand for Telstra shares,
Telstra’s performance,
the outcomes of the new CEO’s operational review, and
the implementation of regulatory changes.

Medical Insurance. The Australian Government has decided to review its ownership of Medibank Private Limited – a major private health insurance company - and will update a scoping study into the possible sale of the company. As with the previous scoping study completed in 2003, the update will examine the operation and structure of Medibank Private, analyse the industry and policy environment in which it operates, and consider options for the Commonwealth's future ownership of the company. The updated scoping study will also examine issues such as the nature of its corporate structure and the effect of a potential sale on consumers, members and employees of Medibank and other stakeholders. It is expected that the scoping study update will be completed by the end of this year.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

More Business Opportunities - Automated Defence Vehicles

2005-08-17T12:01:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia's future military operations will be supported by forces of robots and unmanned vehicles which will be highly integrated and controlled by defence personnel from a distance, Defence Minister Robert Hill said today. Speaking at the opening of the Amazing World of Science event in Canberra today, Senator Hill said the Government was investing more and more on research and development of unmanned vehicle technology for use in future operations and for surveillance purposes.

"These new intelligent and largely autonomous systems will in the future be able to carry out hazardous tasks traditionally reserved for warfighters which will reduce exposure and risks to Australian Defence Force personnel," Senator Hill said. "This will be a huge leap in capability for our Defence Force. I envisage that in the future unmanned battlespace vehicles will be deployed in fleets to gather information, conduct surveillance, sweep for mines, defuse bombs and carry out a range of dangerous tasks. "The autonomous systems will be able to provide the ADF with increased access to its areas of operation, especially in hostile and difficult terrain.

"This advance in technology has the potential to increase the operational effectiveness of our troops and enhance surveillance capabilities while reducing risk to personnel and reducing the cost of operations." Research into such autonomous vehicles is being undertaken by the Defence Science and Technology Organisation (DSTO) under its Automation of the Battlespace Initiative (ABSI). "This is a long range research program to enhance the ADF's capabilities by dramatically increasing the autonomy, performance and affordability of these unmanned vehicles," Senator Hill said. "Trials so far have demonstrated that these autonomous vehicles can work together in cooperative way to complete assigned tasks. "DSTO is exploring the concept of expendable autonomous vehicles which will be inexpensive to manufacture and easy to repair." In time these vehicles will carry integrated communications and other capabilities linking them together and with their controllers. Senator Hill said advances in computing power, electronics, sensors, miniaturisation and smarter software has made it possible to raise automation to a new level.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

US Company Wins Australian Defence Contract

2005-08-16T15:16:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Federal Government has chosen the

company Gibbs & Cox as the preferred designer for the Australian Navy's Air Warfare Destroyers (AWDs) - one of

Australia

's largest and most complex Defence projects worth up to $6 billion. Gibbs & Cox now joins a team made up of ASC Shipbuilder Pty Ltd, who has been selected to build the AWDs, and Raytheon

Australia

, selected as the Combat System-System Engineer. Gibbs & Cox, a United States based company, was chosen through a competitive tender evaluation process that also included German company Blohm + Voss and Spanish company Navantia. The selection of Gibbs and Cox as platform designer now completes the team whose responsibility it is to deliver the project. The Government made the decision after accepting the recommendation of the Source Selection Board on the basis that Gibbs & Cox offered a superior bid in terms of value for money. All three companies presented competitive bids and showed themselves to be very competent naval ship designers. Bids were evaluated against a wide range of criteria.

The Gibbs & Cox evolved design will now compete with an Australianised version of Spain's existing F100 ship design, and will be further considered by the Government as part of the next phase of the project. The construction of the Air Warfare Destroyers will be one of the most significant shipbuilding projects undertaken in Australia to date, and will provide enormous opportunities for Australian industry and its partners. The Government has provided $455 million towards the current phase of the project which includes further design work, workforce skilling, initial infrastructure investment and facilities construction. The ship will be interoperable with the United States and other Coalition partners.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

New Legislation Governs Surveillance of Employees

2005-08-16T14:02:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The obligations of employers in the State of New South Wales – of which Sydney is the capital - relating to electronic surveillance in the workplace are now governed by the Workplace Surveillance Act 2005, which was assented to on 23 June 2005. The Act attempts to strike a balance between an employee’s right to privacy and the genuine concern of employers to protect their workplaces from unlawful activity. The Act regulates the unauthorised covert monitoring of employees at work, whether via cameras or video, computer input or output (such as the sending or receiving of emails, or accessing of internet sites) or tracking devices (such as global positioning system devices).

If an employer wants to commence camera, computer or tracking surveillance, for example, by monitoring an employee’s email traffic or accessing of internet sites, it must provide at least 14 days’ written notice, or any shorter period agreed by the employee. If the notice requirements are not complied with, the surveillance is considered to be “covert surveillance”. Covert surveillance is prohibited unless it is undertaken in accordance with a “covert surveillance authority” issued by a Magistrate. A covert surveillance authority will only be issued for the purpose of determining whether or not an employee is involved in unlawful activity at work.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Naval Ship Building Opportunity

2005-08-12T14:24:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Federal Government has approved the first stage of the $2 billion Amphibious Ships project which will provide the Australian Navy with a world class capability to deploy land forces on operations. The project will provide the Navy with new amphibious ships to be used on operations and assistance in policing or military operations. Readers with interests in defence shipbuilding should contact Agar Carlyon (see email address below) to obtain more information.

The ships to be built include the Spanish Navantia ship of approximately 27,000 tonne and the French Armaris Mistral ship with additional troop carrying capability at approximately 22,000 tonnes. Each ship will preferably have the ability to transport up to 1000 personnel, have six helicopter landing spots and provision for a mix of troop lift and armed reconnaissance helicopters. It will also be able to transport up to 150 vehicles including the new M1A1 Abrams tanks and armored vehicles. Each ship will also be equipped with medical facilities, including two operating theatres and a hospital ward.

A Request for Tender will be released in the second quarter of 2006. The Government's preference is to see the ships built in Australia but this will depend on the Australian industry’s ability to demonstrate it can deliver the project at a competitive price. The Government has given first pass approval to the project and committed $29.8 million towards the Design Development Phase of the project.

The tender documentation will allow bidders to:

* Form teaming arrangements;

* Submit fixed price bids;

* Provide innovative solutions to improve price and schedule, and;

* Bid through life support solutions.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Infation Set to Remain Steady

2005-08-10T14:26:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Reserve Bank of Australia (RBA), in its latest quarterly statement has made its clearest indication yet that a further interest rate rise this year is most unlikely. Just as US rates have edged up a further 0.25%, the RBA has indicated that the chance of a rate rise is equal to that of a rate drop.

At the same time, the RBA said that in its view the Australian economy was growing at a reasonable rate and that inflation was likely to be in its acceptable range of just 3% in 2006. At the same time the Reserve said that in 2007 inflation will remain steady - also at 3%.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

2006 Growth Rate Possibly Around 3.5%

2005-07-22T10:14:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Earlier this week we reported on the slow down in building activity and it being a possible indicator of a greater slow down in the Australian economy. However, as can only be expected, there is often other economic data that supports a slightly counter view.

The Westpac Bank and The Melbourne Institute’s combined economic survey (which is widely and credibly accepted) indicates that the Australian economy will continue to grow at a slightly lower pace than expected in 2005, but will not deteriorate further in 2006. This data indicates that Australia’s 15 years of economic growth is set to continue – not at a significant pace – but at a highly respectable 3 – 3.5%.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Prime Minister Pushes Trade While in DC

2005-07-20T14:54:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Prime Minister, John Howard (pictured) is currently in the USA and amongst other issues, has been pushing the USA to implement reform in agricultural trade. Australia is urging the US to follow through on the undertakings recently given by President George Bush to remove US farm subsidies. As well, the Prime Minister has spoken at length on the USA/Australia Free Trade Agreement.

In his speech to the American Australian Association of the US Chamber of Commerce in Washington DC on 18 July, Mr Howard said that “the Free Trade Agreement represents an expression of optimism about the future of that (USA and Australia) relationship. Of course it didn’t provide the two sides with everything they wanted, but what it has done and what the subsequent passage of the E-3 visa legislation, which I particularly want to express my thanks to the American Congress for, what it’s done is to say to the rest of the world that there is a special character to this relationship. And as our economy and yours becomes more enmeshed as the years go by, particularly in the service sector, people will look back on the passage of this Free Trade Agreement and remark at what a remarkable, far-sighted contribution it’s made to relations between the two countries.”

“But that Free Trade Agreement will only be fully exploited and fully developed if the economies of our two countries continue to grow, and if successive governments in Australia and the United States continue to rise to the challenge of economic reform. The Australian economy is now enjoying its fifteenth year of expansion. That hasn’t happened by accident. It’s happened because over the years governments of both political persuasions in Australia, and I have never been reluctant to give credit to former governments in Australia for some of the reforms carried out in the 1980’s, because governments of both political persuasions in Australia have undertaken far-reaching and significant economic reforms. Tariff reform; getting the budget back into balance and surplus; which has been a hallmark of the work carried out by my government, particularly the contribution that my Treasurer, Peter Costello, has made to that process; labour market reform, and I will return to that again in a moment; fundamental taxation reform some five years ago; and, of course, importantly, financial deregulation carried out by the former government, but strongly supported by the then coalition opposition.” To read the Prime Minister's full address click her e.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Economy Shows Signs of Slowing

2005-07-19T09:17:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Regrettably, the latest data from the Australian Bureau of Statistics (ABS), indicates a decline in growth for the state of New South Wales (NSW), of which Sydney is the capital. The ABS reports that the trend in building activity figures estimates that the total value of work done is now showing four quarters of decline. This compares unfavourably with the growth shown in the state of Queensland (QLD) - of which Brisbane is the capital - which has had two consecutive quarters of growth and with Western Australia (WA) - of which Perth is the capital - having had six consecutive quarters of growth.

The NSW Opposition party’s Shadow Treasurer, Ms Peta Seaton said that the figures continue to make a mockery of the government’s statement that “the NSW economy will accelerate a notch, reflecting the beginnings of a recovery in the housing sector."

Even though Sydney is regarded as the world’s best city (see the article below) – that is not enough to justify a business case for establishing a business presence for the long term. There is now greater reason for overseas businesses seeking a key site for establishing their Australian headquarters to consider cities other than Sydney. Many in the businesses community are lobbying the NSW Government to reactivate incentive programs to encourage businesses to locate in the state, rather than seeking locations where lower business taxes apply.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Sydney - the World's Best City - Again

2005-07-14T11:08:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Sydney has again been named the world’s best city in a survey of wealthy US travellers undertaken by “Travel & Leisure” magazine. The survey was carried out over 900,000 subscribers to the magazine and is the eighth time Sydney has come out as the world’s best city since the magazine started the award 10 years ago.

Tourism is a big money spinner for the local Sydney economy, bringing in around $23 billion a year.

The award is a fitting tribute to Sydney, which has capitalised on the success of holding “the best ever” Olympic Games in 2000 and the millions of dollars it has recently spent on a new international advertising campaign.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Debate on Workplace Reform Heats Up

2005-07-12T09:55:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The debate within the Australian community on likely changes to the current industrial relations system is now increasing. The Howard Federal government has made it well known that it intends to make use of its majority in both Houses of Parliament to enact changes to the workplace relations laws to ensure that small businesses in Australia in particular are not hamstrung by rules and regulations that are more suited to larger corporations.

Even though the precise nature of the proposed changes are not yet clear, the union movement has commenced a nation wide television advertising campaign that has ensured that the issue is now at the forefront of media comment.

Companies considering entering the Australian business environment should ensure that they are fully aware of the current debate on workplace reform to reassure themselves that their business planning is based on what could be new legislation by about September this year. There is no doubt that the changes will bring additional benefits to employers. To read an 11 July speech by Prime Minister John Howard on his proposed reforms – click here.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Possible Qantas and Singapore Airlines Merger

2005-07-11T11:25:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Comment is often made in regard to the difficulty in buying seats on the Pacific air route. This route is serviced by only two airlines, Qantas and United. Both tourists and business people have for some years experienced difficulty in obtaining flights that suit their schedule due to this prevailing duopoly.

As well, on a $ per mile flown basis the west coast USA /east coast Australia flights are some of the most expensive in the world. There is of course a good argument that increased competition would lower prices. Qantas regularly refutes this and argues that increased competition would force it to significantly cut staff and therefore reduce services.

Singapore Airlines has made a number of approaches to the Australian government in attempt to gain rights to fly the Pacific route – thereby opening up not only many hundreds more seats each week but also opening up the route to greater competition and thus lower prices. The beneficial flow on effect to tourism and business is obvious. Regrettably, last month the Australian government rejected the approach by Singapore Airlines and again rejected their bid to fly Sydney – Los Angeles.

As a result, over the last week there has been speculation that Singapore Airlines might try and wrest away from Qantas the stake held in the airline by British Airways and become, itself a major shareholder in Qantas, or indeed undertake a merger. Speculation is that both the Australian and Singaporean governments are supporting this move. It should of course be noted that Singapore Airlines is a government owned airline – Qantas is not. If talks continue as is rumoured, then both US and Australian businesses should soon benefit from more capacity on the Pacific route. Tourism in Australia would most likely be the major winner.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Facts on Export Growth

2005-07-08T16:02:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

We previously reported that Australia’s exports grew by two per cent to reach $14.7 billion in May, achieving a new record high for the second consecutive month. Exports are now on track to reach record levels in both value and volume terms in 2004-05. In the 11 months to May 2005, exports totalled $148 billion, up 13.6 per cent compared to the eleven months to May 2004. Readers of these daily reports should be interested to know that export growth was driven by higher exports of non-monetary gold, and continued growth in coal exports (up five per cent) following the introduction of higher contract prices in April. Other mineral fuels also displayed robust growth.

Rural exports rose $8 million in May. Growth in meat and meat preparations and other rural exports led the way. Some manufactured goods exports recorded sizable increases in May, including road vehicles and medicinal and pharmaceutical products. Services exports rose one per cent, driven by growth in travel and other services.

Those overseas businesses locating offices in Australia to service their Asian markets should note that merchandise exports to East Asian markets have grown exceptionally strongly in 2004-05. Over the 11 months to May 2005, merchandise exports to China have grown 31 per cent, to Japan 26 per cent, to Thailand 61 per cent and to India 22 per cent. There has also been solid growth in merchandise exports to other major markets, including the United States, the European Union and New Zealand.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

Unemployment Hits 29 Year Low

2005-07-07T13:57:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Contrary to the expectations for the coming 12 months - unemployment levels in Australia have reached a 29 year low, with the release of the latest unemploment figures. Today, the Australian Bureau of Statistics (ABS) released its data for June, that indicates that unemployment levels are now at just 5%.

The rate in May was 5.1% The participation rate has also increased by 0.2% to 64.7% when compared to May's rate. The lowest rate in the country is in Western Australia, where the unemployment rate now stands at 4.6%. The traditional "engine house" of the Australian economy, the state of New South Wales, has unemployment just above the national figure at 5.1%.

Commentators had been expecting a rise in unemployment to reflect the slight cooling off of the Australian economy that is currently being experienced.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Interest Rates Stay Steady

2005-07-06T10:46:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

As expected, the Reserve Bank of Australia (RBA) has kept official interest rates on hold again this month. In an announcement this morning, the RBA said that the official cash rate would remain at 5.5%. Most commentators expect the next move in rates to be downward, but for this not to occur until later in 2006.

This will most likely be the time when the Australian economy will be experiencing some flattening out and slower growth than has been experienced over the past years as higher fuel prices bite hard and inflation stays near the upper limit of the RBA's target range of 2% to 3%.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Wine Exports Show Steady Growth

2005-07-05T15:12:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australian wines have enjoyed steady export sales over the past 16 years and the trend looks like it will continue. Sales of Australian wines overseas hit 100 million litres in 1992/3 rising to a high of 584 million litres by last year.

Last year's sales alone were a 12.7% increase on sales for 2002/3. The Australian Bureau of Statistics released the latest data today, showing the rapid and continuing growth of Australian wine sales overseas.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Is Australia Heading for its 15th Year of Growth?

2005-07-05T14:44:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

There is some concern today that the Australian economy over the next 12 months might not have the same strength in growth as it has experienced over the past year. The Australian financial year runs from 1 July to 30 June, so there is now plenty of speculation as to what the forthcoming year holds. The question on all commentators’ lips is will the Australian economy enjoy a 15^th year of growth in 2005/06?

Yesterday the latest balance of trade figures again showed that Australia was importing more goods and services than it was exporting. Its major import market is the USA with Japan still its major export market. The trade deficit though shrank when compared to the two prior months but a 2% increase in ex ports was equally offset by a 2% rise in imports.

Inflation is stable at 2.7%. This is a figure that is probably a little higher than the government would like. The target rate is between 2% and 3%.

Even though the housing sector is in a slight decline with mortgage sales down more than 9% last month, other areas of the economy show resilience – for instance the employment market is the best it has been for over 20 years. Unemployment is currently at 5.3%.

The Reserve Bank of Australia (RBA) will release its latest view on interest rates tomorrow – it is expected that there will be no change.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Brisbane Airport - World's Best

2005-07-04T10:56:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

July 4^th – not a holiday in Australia of course - but one that I was able to celebrate on board the aircraft carrier USS Kitty Hawk yesterday. The ship arrived in Sydney yesterday and hosted a function on board to celebrate Independence Day. The carrier is impressive to say the least.

But back to business.

Brisbane Airport has been recognised as the world’s most efficient and customer focused privatised airport by the International Air Transport Association (IATA). Brisbane Airport Corporation (BAC) was awarded an IATA Eagle at the 61st IATA Annual General Meeting in Tokyo in “special recognition of outstanding performance in customer satisfaction, cost-efficiency and continuous improvements.’’ The IATA Eagle Awards are presented annually to recognise airport and air navigation service infrastructure providers who provide value for money and quality service to their airline customers. They also acknowledge the positive steps being taken by airports and air navigation services to control infrastructure costs and related charges.

More than 15 million passengers now travel through Brisbane Airport every year with more and more airlines choosing to fly from Brisbane.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Australian Workforce Shows Stability

2005-07-01T13:48:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The latest workforce data to be issued from the Australian Bureau of Statistics (ABS) shows that the Australian workforce is quite stable – an issue of importance to businesses considering taking up opportunities in Australia either from start-up or as a joint venture.

Of all the employed persons aged 15 years and over, 24% had been with their employer or business for more than 10 years.
Approximately one in four (24%) employed persons worked 45 hours or more in their main job in the reference week. Of these, 35% were owner managers.
Nearly all (90%) of employed persons in November 2004 expected to be with their current employer or business in 12 months time.
Of the employees who said they worked on a contract basis, 19% worked in the property and business services industry and 18% worked in education. Almost one-third (31%) of employees who said they worked on a contract basis were Professionals.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Lights Without Electricity

2005-07-01T09:16:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Melbourne-based Luna Glow has just developed the world’s first screen printed sign that emits light without electricity enabling people to escape life threatening situations. Australian entrepreneur John Clear, joined forces with eminent American electrical engineer Jim Smith and founded Luna Glow in 2000 after developing a range of the world’s foremost performance photoluminescence technology.

Mr Clear said their environmentally friendly, non-electric after dark products that allow people to locate important escape routes in emergencies are making it big internationally, and are especially seeking markets in the USA. Their products go into stairwells, carparks and underground areas. What’s driving demand in the US market is the need to make people and buildings safer.

When the lights go out, the Lumenite® light sleeves automatically and immediately “kick in” to emit instant illumination for eight to 10 hours. Luna Glow’s products can be put into any plastic material and mixed with all types of chemicals, to create an endless range of “glow in the dark” products. Their new oversized EXIT screen-printed sign can be used for many purposes including for buildings, stadiums and larger warehouses.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Australia Makes Trade in Services Offer

2005-06-30T10:13:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia's latest offer in the World Trade Organization services trade negotiations in Geneva aims to secure new business opportunities for the country’s exporters. Australia's offer of improved access to its markets puts Australia in a strong negotiating position to open up world markets and achieve significant benefits for Australian services exporters.

Services is a fast growing export sector for Australia and a large part its economy – 84 per cent of Australian jobs are in services industries.

Australia is among the first WTO member nations to table an improved offer. It is critical that its trading partners now join in tabling revised offers if Australia is to make real progress in talks. Australia's offer includes legal, telecommunications, environmental, private health, freight logistics, construction and related engineering services, air transport (marketing), and other business services.

Australia is also offering improved commitments covering temporary entry to Australia by business people. This responds directly to the concerns and interests of developing countries, and reflects Australia's own strong interests in achieving more open access to the markets of other countries, both developed and developing, for our services professionals.

The Australian Government will uphold the right of WTO members to regulate and fund public services, and would not support any changes which cast doubt on that outcome. The Government will ensure that the outcomes of negotiations do not impair Australia's ability to deliver fundamental policy objectives in relation to social and cultural goals.

The initial offer is non-binding and can be amended or withdrawn at any time during the negotiations.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Spam Continues to Increase

2005-06-30T10:12:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

A significant increase in the volume of spam sent across the internet in the last few years is leading to additional productivity costs for businesses according to the Australian Institute of Criminology. The Institute has recently released its latest report 'Spam: nuisance or menace, prevention or cure?' which discusses the increasing sophistication of techniques used to send unsolicited commercial email messages commonly known as spam.

In June 2003, 49 per cent of filtered email messages were spam, this number had increased to 67 per cent by December 2004. An estimated 60 per cent of spam comes from the United States.

Spam is not universally regarded as a problem. In a study from the United States, two-thirds of the respondents did not consider email to be spam if it originated from a sender with whom they had previously conducted business. The same study found that 59 per cent of the respondents found spam 'annoying but not a big problem', 27 per cent found it to be a 'big problem' and 14 per cent believed it to be 'no problem at all'.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

World Class MS Research Center Opened

2005-06-29T15:03:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

A state-of-the-art research facility housing some of Australia’s most promising multiple sclerosis R&D has been officially opened in Brisbane today.

The new headquarters of growing biopharmaceutical company CBio (an innovative Australian company turning quality academic research into promising therapeutic products) will accommodate an expanding research team developing world-leading treatments for autoimmune and inflammatory diseases.

In April 2005 CBio was one of eight Australian companies to receive funding as part of the government’s $150 million Pharmaceutical Partnerships Program. The company is set to commercialises its world-class R&D in Australia, and will be recruiting new staff for the task. CBio will use its government funding to support pre-clinical and clinical trials of its Cpn10 treatment for autoimmune and inflammatory diseases.

Cpn10 is expected to have fewer side effects than current drugs on the market and so has the potential to dramatically improve the quality of life for sufferers of diseases like multiple sclerosis and rheumatoid arthritis. The treatment, if proven successful, will build on Australia’s global reputation as world-class pharmaceutical innovator.

Despite the fact that Australia has less than 1 per cent of the world’s population, it is home to almost 3 per cent of the world’s health R&D.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Workplace Reforms Imminent

2005-06-29T11:38:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

With effect from July 1st, the Howard federal government will gain control of both Houses of Parliament Â when it obtains an effective one seat majority in the Senate. This is the first time in nearly 30 years that an Australian federal government has been in such a position. With around two years until the next election, some in the electorate are nervous about what legislation the conservative government will pass.

In particular the union movement has been generating significant press coverage over the past month with a major scare mongering campaign aimed at drawing attention to the forthcoming industrial relations (workplace) reforms. With the full details of what the government is proposing still not entirely clear, the unions have commenced a series of strikes in key industries and media campaigns to ensure employees fear the worse.

This is unlikely to eventuate, with the government simply anxious to wind back workplace relation laws that are an impost on business Â especially small businesses. The outcome will be a more reliable workplace, with more flexibility for employers and with greater opportunity for jobs to suit employeesÂ needs.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Helping Keep Produce Fresh for Longer

2005-06-27T12:09:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Trials of a new export packaging technology developed by the Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO) have shown it can maintain field freshness of selected fruit and vegetables during extended periods of storage and shipping. Moisture loss during storage and long distance shipping reduces produce quality and saleable weight and leads to discarded produce. CSIRO's Moisture Control Technology (MCT) can greatly reduce these problems by managing the water vapour content around the produce.

The MCT liner is a simple bag that fits inside a normal carton or box. By keeping humidity high, MCT liners can reduce moisture loss significantly during long sea voyages. The unique design of the MCT liners also prevents any condensed moisture, which may have formed inside the bag as a result of temperature fluctuations during transport, from finding its way onto the produce. Eliminating free moisture on the surface of fruits and vegetables reduces the potential for produce breakdown due to pathogens. In a recent export trial of oranges to the USA, not only did the MCT liner reduce moisture loss, it significantly reduced the incidence of defects such as chilling injury and rind breakdown, which in some years can be a serious concern for the industry.

The CSIRO says that the technology can be incorporated into current export systems and has excellent potential for improving returns for exporters of fruit, vegetables and possibly even cut flowers. MCT could also be combined with other new technologies to extend shelf life, with the possibility of opening up new overseas markets that are currently too far away to be practical for surface transport.

CSIRO is now discussing the potential for larger scale export trials of the technology with major exporters of fresh horticultural produce.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Potential Defence Logistics Opportunities

2005-06-24T14:29:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Department of Defence is planning a major upgrade to its logistics information system with Brisbane based technology company MINCOM, it was announced today. Initial expenditure will be allocated from within the overall Defence Capability Plan budget of $100-150 million. The project aims to upgrade Defence's logistics system to provide new capabilities and improve information management and business processes. Defence's logistics information system is used to manage and track assets as they move through the logistics system from ordering to use within Defence.

The current logistics management system is a complex system which has developed in an ad hoc way over about 20 years, made up of more than 200 individual systems which track materials such as clothing, spare parts and other stores. The core logistics system known as the Standard Defence Supply System (SDSS) is installed at more than 1000 business units within Defence, handles some 600,000 transactions a year and has about 8,000 regular users. The system now requires an upgrade and improvements to keep up with both advancements in technology and the needs of Defence.

The upgrade could offer possible joint venture projects for US based corporations with skill synergies that sit comfortably with MINCOM.

Other aspects of the project include the development of an enhanced deployable logistics capability, an improved financials package, which would connect more effectively to Defence's financial information system, and an integrated In-transit Visibility System, which will allow Defence to track the movement of stores and components across the country and at overseas locations.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

USA - Australia Free Trade Agreement Showing Tangible Benefits

2005-06-24T10:58:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Austrade (Australia’s trade commission) has announced that tariff reductions on extruded plastics brought about by the Australia-United States Free Trade Agreement (AUSFTA) is helping Australian companies access US markets and similarly enabling US companies access Australian suppliers.

Australian design, manufacturing and marketing company EGR Group supplies automotive parts and accessories to companies such as GM, Ford, and Toyota, in 40 countries worldwide. One of EGR’s largest export regions has been the US market.

With the implementation of the AUSFTA on 1 January 2005, companies like EGR now benefit from reduced tariffs, and on a broader level, a shift towards a more transparent.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Australian Exports Reach Record High

2005-06-23T16:39:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australian exports reached their highest monthly level ever in April, growing at 9% to reach $14.6 billion. This is the strongest monthly exports growth since the Olympics in September 2000 and the highest monthly level ever recorded.

According to the Federal government Australian exports are on track to achieve a record level in value and volume terms in 2004-05. Total exports in the 10 months to April 2005 were $133.2 billion, up 13.8% compared to the 10 months to April 2004.

The largest contributor to exports growth was a 14% rise in non-rural and other goods exports. This reflected a rise in coal exports of 35% and a rise in iron ore exports of 18 %, as higher contract prices start to flow through to export receipts.

Despite the drought, rural exports rose 7%, reflecting higher exports of live animals and fishery products. Strong growth was recorded in transport equipment exports, which rose 28% and metal exports (up 18%). Services exports moderated slightly after strong growth in the March quarter.

April's International trade in Goods and Services saw a slight moderation in imports in April and the trade deficit halved from $2.6 billion to $1.3 billion, the lowest deficit since January 2003.

There were falls in imports of consumption goods and intermediate goods, while capital goods imports increased, indicating businesses increased investment in imported inputs into production in the month. There was a slight rise in services imports.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Proposed Workplace Reforms

2005-05-18T10:54:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

In a comprehensive statement, a leading Australian business organisation – the Australian Industry Group (AIG) has stated that it is evident that the Federal Government is still developing its workplace relations reform package.

Workplace relations reforms is expected to be the major emphasis of the Australian Federal Government once it has control of both Houses of Parliament from 1 July.

AIG says that the Federal Workplace Relations Minister has set out publicly several times a number of reforms that the Government is currently considering:

A package of measures, based on the Corporations Power, that will bring 85-90% of employees into the Federal workplace relations system;
Options for the setting of the minimum wage;
Significant changes designed to remove the complexity and third party interference with agreement making and to simplify the process;
A series of changes to the role of the Australian Industrial Relations Commission (AIRC), including increased use of mediation;
Changes focused on further simplifying awards, whilst continuing their role as a genuine safety net of minimum terms and conditions.

AIG has proposed that a new body be established to set minimum wages - a Minimum Wages Commission - comprised of multi-disciplinary experts to advise the AIRC on future safety net increases. This body would take into account the broad range of issues that including welfare, tax changes, productivity, inflation and the impact on employment. This proposal is part of a comprehensive plan for reforming Australia's workplace relations system which AIG has presented to the Federal Government.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Free Trade Agreement Can Reduce Impediments

2005-05-17T12:07:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Multilateral and bilateral trade agreements – such as the Free Trade Agreement that exists between the USA and Australia - can remove some of the barriers U.S. based logistic service providers face in foreign markets, according to a U.S. International Trade Commission (USITC) report.

In a May 16 news release announcing its publication, the USITC notes that in recent years impediments in some logistic-related sectors have been reduced as a result of unilateral deregulation or multilateral trade agreements. The report concludes that some of the remaining barriers can be further lowered through multilateral trade negotiations and bilateral free-trade agreements, and that the latter provide the greatest benefit to logistic service firms.

The report also says that the reduction or removal of impediments affecting the industry could lead to an increase in U.S. goods exports.

The report, which was prepared at the request of the Office of the U.S. Trade Representative, can be viewed on the USITC internet site - click here.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Numerous New Defence Industry Opportunities

2005-05-16T15:59:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia has decided to enter the next phase of the Joint Strike Fighter (JSF) program, opening up substantial new opportunities for Australian industry. The government today said Australia will enter negotiations with the United States and seven other nations as part of the next phase of the US$200 billion JSF program.

Australia's involvement in the first phase of the JSF project has led to considerable opportunities for Australian industry to compete for work on this large global defence project. This has opened the door for Australian industry to now bid for the larger more lucrative contracts that make up the next phase of the JSF program.

The Australian Defence Minister said negotiations were expected to lead to a cooperative agreement in late 2006 with the Government to make a decision on aircraft purchases in 2008. If approved, the project will replace Australia's F-111 and F/A-18 aircraft with the next generation JSF.

Current analysis suggests that the proposal for up to 100 Conventional Take-Off and Landing JSF aircraft, and associated support elements, remain within the original cost estimates.

The Government is committed to Australian industry participation in the JSF program. To date, 18 Australian companies have won contracts or commitments of work in the existing System Development and Demonstration phase.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Unemployment Remains Steady

2005-05-13T12:48:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The latest unemployment figures released yesterday show that Australia’s unemployment rate has remained steady at 5.1%.

This figure has kept the unemployment rate at a 28 year low.

Coupled with continuing good economic growth at around 3% and a 2005/2006 budget that will increase the level of disposable income through tax-cuts, there is some concern that interest rates might rise sometime over the next 6 months.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

A Confused Response to a Well Received Federal Budget

2005-05-12T10:13:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The most interesting aspect of the post-budget debate has been the response of the Labor opposition party to what was a well accepted Federal budget. (See my article of yesterday- below.)

With over $21 billion in tax cuts scheduled to take effect initially from 1 July 2005, the Opposition parties have indicated that they will vote against the cuts. Why - it is difficult for anyone to fathom. Apparently it is a matter of principle.

But what has confused commentators and the community at large is that the Opposition parties seem to have forgotten that the Howard government gets control of both Houses of Parliament from 1 July - so the necessary legislation can be passed anyway - but the Opposition will have delayed the tax cuts (and other budget initiatives) for a month or so.

As a political tactic, the overall response appears to be one of a confused and rudderless Opposition, that has focused debate on themselves rather than on the government - which you'd have to assume was the objective.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

mailto:david.taylor@agarcarlyon.com

2005/2006 Australian Budget -Tax Cuts Plus a Good Surplus

2005-05-11T12:07:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Australian Federal Treasurer last night released the governments budget for 2005/2006.

Unlike many other western nations, the Australian government led by Prime Minister John Howard, again brought down a healthy surplus (8 of the last 10 budgets have been in surplus) while continuing a program of economic growth. Economic growth is expected to be at around 3% for the forthcoming 12 months.

Details of the budget can be read on line in various locations, including;

The Australian Broadcasting Corporation (ABC) - click here or
The Australian Government's own budget website - click here

It is worth reporting here that the main features are;

Tax cuts of $21.7 billion
An increase in the threshold at which the top personal tax rate cuts in from $70,000 to $125,000
A lowering of the lowest income tax rate from 17% to 15%
Positive changes to the taxing regime of superannuation/pensions
An overhaul of the welfare system
New funding for child care places
Funding increases for vocational skills training
Some tax relief for businesses
A surplus of nearly $9 billion

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

USA and Australia Facing Conflicting Futures

2005-05-10T11:48:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Just as an Australian survey of business expectations has found most Australian businesses are preparing for a difficult start to the new financial year (1 July), the US is reporting strong job prospects.

According to the latest Dun and Bradstreet business expectations survey, most business owners say there is a softening retail demand and their profits have fallen.

The US report has led markets there to factor in continuing growth and steady interest rates.

The Australian report has caused some uncertainty in the markets and has resulted in a slight decline in the value of the A$ versus the US$.

At the time of writing, A$1 = US77.44 cents

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Crackdown on Advertising that Stretches the Truth

2005-05-09T16:17:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Only a week after airlines in Australia have been forced by the consumer watchdog, the Australian Competition and Consumer Commission (ACCC), to advertise the full cost of airfares – including all taxes and charges – the Commission is now focusing on a new group.

The ACCC has reacted to community concerns that juice bars are stretching the truth in their claims of various health benefits that come from drinking their blended juices, smoothies and other juice extracts, which tend to have a wide variety of additives included. The ACCC will be taking action against retailers that cannot provide factual evidence to support their sometimes outlandish claims – of how their juices and drinks will help you through the day – let alone improve your memory and longevity.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

2 Steps Forward and 1 Step Back

2005-05-06T11:50:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australia's 2005/2006 Federal Budget will be released by the Treasurer, Peter Costello next Tuesday, 10 May. With an expectation of a healthy surplus, the pre-budget news is being dampened by the latest trade figures.

The official numbers released yesterday show that Australia produced its second largest trade deficit on record for the month of March. The deficit was $2.67 billion - a blow out of nearly half a billion dollars from what was expected. The blow out was not helped by the increase in the cost of oil imports (up 44%) and a decline in rural exports (down 8%). Rural production has been severely hit by the current drought. Imports rose 2% for the month and exports declined 1% - leading to many media commenting that it was a month of 2 steps forward and 1 step back.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

mailto:david.taylor@agarcarlyon.com

Interest Rates Remain Unchanged

2005-05-05T12:48:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Reserve Bank of Australia announced yesterday that at its monthly meeting on Tuesday it had determined to leave the official cash rate unchanged.

The official cash rate remains at 5.50%

Meanwhile, the Australian Tax Office (ATO) warned business owners to be wary of promoters offering to reduce income tax through arrangements using tax losses in an unrelated company.

Under the arrangements businesses are restructured so that income is channelled through a chain of trusts and ultimately to a company with alleged tax losses.

The Tax Office is concerned that these arrangements involve the artificial transfer of income and that at all times the business owners retain effective control of the money in question, less a fee which is paid in cash to the promoter. These arrangements may breach a number of provisions of the Tax Act, including the general anti-avoidance rules.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

editor@agarcarlyon.com

Potential Savings of Billions of Dollars

2005-05-03T14:56:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

Australian research will potentially save the oil and gas industry billions of dollars by predicting the effects of future climate change on the seabed.

Australia’s Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) Wealth from Oceans Flagship and its partners have developed Sedsim, a high-performance computing program used to predict seabed changes over long periods of time. This project draws together CSIRO's expertise in Petroleum Resources and Atmospheric Research, with international input from the US based Institute of Arctic and Alpine Research (INSTAAR), Geoscience Australia (GA) and, in the early stages of the project, Stanford University.

In a recent statement from the CSIRO, Craig Roy, Director of Wealth from Oceans Flagship said that the research is a world first, with the Flagship setting the pace globally in seabed modelling.

The research team believes this could have a major impact in predicting the risk to billion dollar infrastructure.. One of the main applications will be to assist in the appropriate design of oil and gas pipelines, in both low and high risk areas.

Sedsim seabed modelling brings together an advanced sediment transport model, capable of predicting sediment movement over decades. It can also be applied globally using a state of the art numeric model to predict sediment erosion, transport and deposition in a wide variety of sedimentary environments, including shallow to deep marine. The program can model the way sediment responds to waves, current and tidal effects.

In the next decade, it is predicted that up to $10 billion may be spent on thousands of kilometres of offshore pipelines worldwide. Substantial environmental and costs savings could be made if these pipelines can be designed to suit both the present sub-sea environment and the future seabed conditions.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

Interest Rates Likely to Remain Unchanged

2005-05-02T10:28:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

With the Australian economy showing a deal of tightening over the past months there is added speculation that tomorrow’s meeting of the Reserve Bank of Australia (RBA) will leave interest rates unchanged.

Key data at the time of writing -

Official Cash Rates 5.5%
Exchange Rate A$1 = US77.95 cents
Inflation Rate 2.4% for the 12 months to March 2005
Next Statement on Monetary Policy by RBA - 6 May 2005

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

Inbound Tourism Set to Grow

2005-04-29T11:00:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The value of inbound tourism to Australia is set to reach $32.1 billion in 2014, up from $18.5 billion in 2005, representing average annual growth of 6.3 per cent, according to the latest economic value market forecasts from the Australian Tourism Forecasting Committee.

The UK market is currently Australia’s top market in terms of earnings, contributing around $2.8 billion in 2004. This position will be taken by China in 2014, with an expected contribution from that market of $5.9 billion, up from $1.2 billion in 2004.

Other top contributing markets will continue to be the UK, whose market earnings are forecast to be $4.8 billion by 2014, followed by the US at $3.2 billion, New Zealand at $2.3 billion, and Japan at $2.1 billion.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

Australian Inflation Rate Remains Low

2005-04-28T12:21:00.000+10:00

LATEST AUSTRALIAN BUSINESS NEWS

The Consumer Price Index (CPI) data released today shows that inflation remains moderate in Australia. The CPI increased by 0.7 per cent in the March quarter 2005, to be 2.4 per cent higher through the year. This outcome is around the middle of the medium-term inflation target band.

According to the Federal Treasurer, Australian households benefited from price declines across a range of items in the March quarter, including audio, visual and computing equipment (down 6.4 per cent), fruit (down 3.5 per cent), furniture and furnishings (down 2.1 per cent), and clothing and footwear (down 1.4 per cent). Notably, motor vehicles prices fell by 1.4 per cent, reflecting tariff reductions from 1 January and extensive competition and discounting by dealers.

Automotive fuel prices fell by 2.7 per cent in the March quarter 2005, after increasing for the past four quarters. The fall in automotive fuel prices subtracted around 0.1 of a percentage point from the overall increase in the CPI in the March quarter.

Continuing strong demand for labour and materials in the construction sector in some capital cities saw house purchase prices rise 1.4 per cent in the March quarter. Other components that contributed positively to inflation in the March quarter were food, education and health. The increase in food prices (up 0.9 per cent) was driven by higher prices for vegetables, and beef and veal. Price rises in health were mainly due to rises in pharmaceutical prices (up 16.8 per cent), largely reflecting the annual resetting of the Pharmaceutical Benefit Scheme (PBS) safety net threshold together with the increase in PBS contributions from 1 January 2005. Education was up by 6.0 per cent, reflecting increases in HECS payments, in addition to the regular increase that occurs at the beginning of each school year.

The key influences on inflation point to continued moderate outcomes, with inflation expected to remain within the medium-term target band. Despite the unemployment rate falling to a 28-year low, wages pressures remain contained and other business input costs also remain moderate. Furthermore, the slowing in housing activity suggests that price pressures in the construction industry should moderate.

With the release of the latest CPI data, it is unlikely that the Reserve Bank of Australia will increase interest rates next week.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

Australian Chocolate Selling Well

2005-04-26T16:44:00.000+10:00

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LATEST AUSTRALIAN BUSINESS NEWS

With premium chocolates currently experiencing phenomenal growth worldwide, competition for a bite of the enormous $23 billion annual chocolate market in the USA has never tasted sweeter for Australia's Kangaroogold Chocolates.

Dedicated to creating sublime chocolates, the company gathers the finest ingredients from around the world.

Retailers in the USA were positioning Kangaroogold Chocolates along side the European chocolates in their stores.

Kangaroogold Chocolates has been successful in obtaining shelf space in US retail outlets such as Bristol Farms, Ralphs, Albertsons and many others.

Its product range combines farm fresh dairy, fruits and nuts from Australia with the renowned cocoa beans of Africa's Ivory Coast. Its cocoa butter content ranges from 34 to 55-per cent, more than double the level found in many other brands.

The kangaroo logo and bright gold wrapper continues to outshine established labels in the exclusive European Chocolate sections of many stores in the US.

A recent highlight for the company included supplying chocolates at the Golden Globes.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

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Australia Trade Coast Booming

2005-04-26T12:37:00.000+10:00

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LATEST AUSTRALIAN BUSINESS NEWS

Companies which have been attracted to Australia TradeCoast by its competitive advantages now have a new advantage.

The Australia TradeCoast Associates Register will enable the thousands of businesses that make up Australia TradeCoast to connect with each other online and to tap into the resources of the region.

Australia Trade Coast is the key economic region encompassing the Brisbane Airport, Brisbane Port and Brisbane City, Queensland, Australia.

The success of Australia Trade Coast was confirmed internationally last year when it won the Economic Development Leadership and Accomplishment Award, presented by CoreNet Global, a major international association of corporate real estate and site selection executives.

Australia TradeCoast is an industrial and commercial precinct that's unique among other such centres in Australia. It's unique because it abuts both a major airport and a major seaport and it's closer to Asia than any such infrastructure to the south. The precinct also has a rail link with the south and first class road links with major highways along the eastern seaboard, from Cairns to Melbourne, to western Queensland and to north western New South Wales.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com">editor@agarcarlyon.com

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Motor Vehicle Industry Benefits From R&D Grants

2005-04-22T14:59:00.000+10:00

Five Australian automotive Research & Development projects have been chosen as the first successful recipients of $41.36 million of assistance under the Australian Government’s Motor Vehicle Producer Research & Development Scheme.

The Toyota Tech Centre, which is part of the company’s goal to capture 15 per cent of the global vehicle market in the decade starting 2010, has been supported with the offer of $5.56 million for a software development project.

“All five projects announced today cover areas crucial to the industry’s development including those with an environmental focus such as fuel economy and emissions improvement, and safety systems,” said Mr Macfarlane, the Federal Government Minister responsible for the scheme.

The R&D support scheme is worth $150 million, an indication of Australia’s determination to give the industry the time and resources it needs to cement its future as an innovative international competitor. It is all part of the Government’s $4.2 billion post-2005 industry assistance package.

The specific projects are-

• Ford Motor Company of Australia, $27.98 million for its State of the Art Engine Initiatives;
• Holden Limited, $4.81 million for its Fuel Economy and Emissions Improvement project;
• Holden Limited, $1.94 million for its Smart Architecture Development project;
• Holden Limited, $1.07 million for its Safety and Intelligent Systems project;
• Toyota Motor Company of Australia, $5.56 million for its Software Development Project Phase 1.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

What happened to the news?

2005-04-22T14:54:00.000+10:00

Where did all the news go to?

If you locate - somewhere in the ether – all the latest business news stories from Australia from 25 February until today, please let me know!

But read on – it’s back. Daily business news updates from Australia.

David
editor@agarcarlyon.com

Innovative Diagnostic Technology

2005-02-25T11:25:00.000+11:00

Brisbane company, Panbio Ltd, has been offered one of the first grants under the Australian Government’s new $1 billion Commercial Ready program to develop leading-edge diagnostic technology to test for a range of infectious diseases.

The $3.5 million grant will further R&D on “Forced Enzyme Complementation” technology, the next generation of diagnostic tools used for the testing and identification of specific diseases, particularly high infectious ones.

Panbio Ltd has developed more than 90 diagnostic tests which are used in clinical laboratories to check for about 30 diseases like Ross River, Dengue or glandular fever and whooping cough. Last year the company produced kit tests to assist in the diagnosis and treatment of more than four million people in Australia, New Zealand, Asia, the Americas, Europe, the Middle East and Africa.

The company expects the new technology to generate significant national and export income as it replaces current testing methods.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
david.taylor@agarcarlyon.com

A$ Continues to Rise

2005-02-23T10:39:00.000+11:00

The Australian dollar hit a 12 month high in relation to the greenback overnight. With US oil prices rising and a lack lustre day on the US stock market, the US$ weakened, leaving the A$ to rise above US79 cents.

The rising A$ has put more pressure on the Australian economy as exporters continue to find it hard to compete in overseas markets and imports become more competitive – leaving greater likelihood of a worsening trade deficit.

To check the A$ v US$ market at any time go to FutureSource at www.futuresource.com

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Interesting Political Days Ahead

2005-02-22T09:24:00.000+11:00

The Australian political scene is to see its first major change in over 20 years from July 1 this year. Even though federal governments of different political persuasions have been in office over the years, none have had control of both Houses of Parliament – the House of Representatives and the Senate since the early 1980’s. At the last federal election, in October 2004, the Howard Government (now into its fourth term, having been in office since March 1996) won control of both Houses. Because of the timing of the replacement of Senators, the Government’s control of both Houses doesn’t come into effect until July 1 2005.

The impact of this significant change to the political landscape should be a raft of legislation designed to wind back years of industrial relations legislation that employers see as severely restricting growth and changes to welfare legislation to ensure that only genuine and deserving individuals receive full benefits. Both of these measures will raise the ire of the union movement – but to no avail. The unions have for years been able to exert pressure on the Senate to have it vote down, or water down government legislation – often defeating legislation that was a part of the elected government’s clear policy mandate.

The changes to industrial relations and social welfare policies and legislation over the next 3 years should be of on-going interest.

As always – we live in interesting times.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

New Australia/Asia Free Trade Agreement Talks Begin

2005-02-21T11:07:00.000+11:00

With the US/Australia free trade agreement now firmly in place (it came into operation on January 1st this year), Australia is this week commencing negotiations with the 10 countries of South-East Asia (known as the ASEAN countries) and New Zealand on a free trade deal.

It is anticipated that the talks will outline a two year agenda for the 12 countries to reach agreement. The FTA will encompass a free trade deal covering goods, services and investment. The final agreement is planned to operate for 10 years to 2017.

The potential for more trade between Australia and the ASEAN countries is significant. At present these countries take 12% of Australia's goods exports and 15% of services exports. The combined population of the ASEAN region is around 545 million.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
mailto:david.taylor@agarcarlyon.com

Australia Leads in Innovation

2005-02-18T09:46:00.000+11:00

Australia’s reputation as a ‘clever country’ has been confirmed with the release of an innovation survey which shows Australia has recorded a higher involvement in business innovation than almost all EU countries including the United Kingdom.

According to the ABS Innovation in Australian Business 2003 survey, more than one-third of all Australian businesses engaged in innovation over the three years to 2003, spending $20 billion on innovation activity.

The main findings from the survey are:
• Australia ranks 7th against European countries for the proportion of businesses innovating – ahead of countries including the United Kingdom, France, Italy and Sweden;
• 35% of Australian businesses were engaged in innovation activities during the three years ending December 2003;
• 61% of businesses employing 100 people or more were innovating businesses;
• On a sectoral level, the industries with the most innovative businesses are communication services, electricity, gas and water supply and manufacturing;
• Australian businesses spent around $20 billion in 2002-03 on innovation activities. Of this, around $7 billion was spent on research and development (R&D) and $13 billion on non-R&D innovation.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
mailto:david.taylor@agarcarlyon.com

Millions of Dollars Being Spent on Oil and Gas Exploration

2005-02-17T11:22:00.000+11:00

Petroleum companies will invest almost $220 million in oil and gas exploration following the grant of new exploration permits in waters off Western Australia and Tasmania. This maintains the Australian Government’s ongoing program of releasing offshore acreage for petroleum exploration.

Eight of the permits are located in the commercially proven Carnarvon Basin, which hosts world-class reserves of natural gas, as well as significant volumes of oil. The new permits are close to previous discoveries and existing infrastructure which suggests there’s a good chance of new discoveries.

The remaining three permits are adjacent to the Yolla gas field in the Bass Basin off northern Tasmania, close to the major gas markets of south-eastern Australia.
Maps and full descriptions of the areas can be found at www.industry.gov.au/petexp

Under the work program bidding system for the award of exploration permits in Australia’s offshore areas, applicants are required to nominate a guaranteed minimum 'dry hole' exploration program for each of the first three years of the permit term and a 'secondary' program for the remaining three years. Each component of the program must be completed in the designated year or earlier. Permits are granted for an initial term of six years.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Possible Open Skies Policy Generates Angst

2005-02-16T16:12:00.000+11:00

We reported earlier this week that Singapore Airlines and the Australian Government were meeting to discuss Singapore Airlines' gaining greater access to the Australian market, including access to the Sydney - Los Angeles route. The meetings have generated considerable angst with some government politicians already urging the Transport Minister (and deputy Prime Minister) not to water down the duopoly that Qantas shares with United Airlines on the lucrative Pacific route. The clamor has been significant and flies in the face of reality - that greater competition (and 3 airlines rather than 2 is hardly significant competition or even choice) should be of benefit to the flying public if the airlines concerned all strive to gain market share and retain loyal customers.

The situation at present is ludicrous, with Qantas moving hundreds of jobs off-shore, yet claiming that entry by Singapore Airlines will reduce their employee numbers. So too the argument that Singapore Airlines is not a discounter. If that is the case, then the other 2 airlines would surely be able to gain and retain market share with ease.

A decision will not be made quickly and will require the support of the entire Cabinet. However, there is little doubt that the current restrictive arrangements can not remain. As always - we live in interesting times.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Australian Dollar Continues to Strengthen

2005-02-15T10:40:00.000+11:00

The Australian dollar has continued to strengthen overnight on the back of continuing speculation that there will soon be an increase in official interest rates in Australia.

At 8.00am on 15 February the A$ was US78.81cents. The expectation of many analysts is that the A$ will hit $80cents by the end of the week.

As reported in previous articles, the rising A$ is continuing bad news for Australian exporters who are being impacted by the strength of the local currency. The expectation of interest rate rises - which will further broaden the gap between Australian and US official interest rates - is something they would rather do without. Most exporters believe the A$ should sit somewhere around US70cents.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

More Flights Across the Pacific a Possibility

2005-02-14T09:17:00.000+11:00

For those who fly the Pacific route between the US west coast and Australia and have been thwarted in obtaining a ticket because all flights are full – some relief might soon eventuate. At present only United Airlines and Qantas fly the Pacific route. This situation has been in place for many years, despite a desire by Singapore Airlines to also fly between the east coast of Australia and the west coast of the US.

Singapore Airlines is currently prevented from participating on the Pacific route as the Australian government wants to protect Qantas – even though the airline no longer has any government ownership. The Pacific route is one of Qantas’s most profitable, with flights nearly always at maximum capacity. Qantas argues that increased competition would impact on its profitability and therefore levels of staffing. The Australian tourism sector however, argues that the restricted flight numbers at present have prevented an increase in US tourism to Australia – to the benefit of competing destinations.

This week the Singapore Transport Minister is meeting with his Australian counterpart to argue the case for Singapore Airlines (a government owned entity) to be entitled to a full “open skies” policy. This would expand on the 2003 agreement that gave Qantas unrestricted rights to Singapore as a base for its global operations.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

A$ strong. More Pressure on Interest Rates

2005-02-11T14:29:00.000+11:00

The A$ has risen significantly overnight against the US$ reaching US78.39cents – a high for 2005 for the A$. The rise has come about as a result of continuing strong employment numbers and an improvement in Australia’s trade deficit.

Unemployment in Australia remains at near 30 year lows of 5.1% and has the possibility to improve even further. The deficit, criticised by all commentators in December has dropped back to $56.4billion from $59billion.

These figures, couple with a slight deterioration in the global position of the $US has led to a strengthening of the $A.

But what does this mean for Australian interest rates? As reported over the last week – there is a growing likelihood that the Reserve Bank of Australia will soon increase interest rates – possibly by an initial 0.25% and a similar amount the following month. Home lending figures that show another 1.2% increase last December, coupled with the improving trade deficit, good employment and an emerging new round of pay rises from the union movement – all appear to make an interest rate rise inevitable.

The problem this will then create is the differential between the Australian and US short term interest rates. The attractiveness of Australian rates will pull in more foreign capital, which will in turn keep the A$ high v the US$ which in turn makes it harder for Australian exporters, yet makes imports cheaper which in turn will worsen the trade deficit – and we are away again on the vicious circle of how to manage a strong vibrant economy.

We live in interesting times.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Interest Rate Rise Likely

2005-02-08T09:31:00.000+11:00

In a carefully worded statement issued on 7 February, the Reserve Bank of Australia (RBA) made it clear that there is every likelihood that interest rates will rise in the near future. It is expected that rates will rise by mid-year, possibly only by 0.25%, but this will be the first increase in rates for 14 months.

There is growing concern at the level of personal debt being incurred and at the underlying inflation rate that could reach 3% by the end of 2006, if interest rates remain unchanged.

The strong Australian economy over the past 14 years, now coupled with an historically low unemployment rate has triggered an increase in consumer (debt funded) spending.

At the same time, the just released 2004 Economic Survey of Australia by the Organisation for Economic Co-operation and Development (OECD) provides a strong endorsement of Australia's economic performance.

The OECD Survey notes that “in the last decade of the 20th century, Australia became a model for other OECD countries” in relation to structural reform and its adoption of medium term macroeconomic frameworks. The OECD points out that these reforms have “conferred an enviable degree of resilience and flexibility on the Australian economy”, resulting in a prolonged period of good economic performance that saw the Australian economy shrug off crises in its main trading partners, as well as a devastating drought at home.

Looking forward, the OECD expects a continuation of strong economic growth over the next two years, underpinned by strong productivity growth and accompanied by low inflation and an unemployment rate around current levels. The OECD forecasts the Australian economy to grow by 3.8 % in 2005 and 3.6 % in 2006. The OECD mentions some risks to the outlook, including around the price of oil, exchange rate volatility and adjustment in the housing sector.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Importance of Tourism to Australia

2005-02-07T11:49:00.000+11:00

Tourism is a key economic driver for the Australian economy. It employs almost 10 per cent of the workforce (directly and indirectly), contributes $71 billion in expenditure per annum and is worth more than 11 per cent of total exports.

More than 90 per cent of tourism-related businesses employ fewer than 20 staff, including substantial numbers of young people and people from non-English speaking backgrounds. With 47 cents in every tourism dollar spent in regional Australia, tourism offers an alternative to many regions at a time when some traditional rural industries are facing structural adjustments.

For information on any article on this site, or in the Report, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Leading Government Minister's Comments on Australian Economy

2005-02-04T07:22:00.000+11:00

In a recent speech to a Forbes dinner in Beverly Hills, California, Australia’s Minister for Industry, Tourism and Resources, The Hon Ian Macfarlane talked about the strength of the Australian economy and potential into the future.

“Australia is one of the contemporary business bases of choice in the fast growing Asia Pacific region”, he said. “We are now in our 14th year of uninterrupted growth. The World Competitiveness Yearbook has judged us the most resilient economy in the world for the third straight year. Our strong economic growth rates continue to outrank most other major OECD economies, and is expected to continue with forecast growth of 3.8% in 2005 and 3.6% in 2006. This growth hasn’t been accidental.”

The Minister went on to say that the growth has been “built on sound economic management and reform, including tax reform, workplace reform and reducing trade barriers. We have a particularly strong resource sector but that’s only part of a diverse, sophisticated and modern economy. Service industries now account for almost 80% of our GDP. We have internationally acknowledged strengths in new technology sectors such as biotechnology, information technology and nanotechnology. While Australia’s pool of investment fund assets is now the fourth largest in the world, valued at US$532 billion.”

“Australia now has more people employed in the finance sector than Singapore and Hong Kong combined. And we have the most multilingual workforce in the Asia-Pacific region. In fact they say there are only 3 cities in which all Asian languages are spoken – they are Brisbane, Sydney and Melbourne. The Australian education system is ranked third in the world when it comes to meeting the needs of a competitive economy. And last year the World Bank rated Australia as the easiest place in the world to start a business.”

For information on any article on this site, or in the Report, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

February Newsletter Now Being Circulted

2005-02-03T13:39:00.000+11:00

The February 2005 edition of "The Agar Carlyon Report" - a succinct summary of Australian economic and business news is now being circulted.

Please click here to read it.

For information on any article on this site, or in the Report, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Interest Rates

2005-02-03T08:50:00.000+11:00

On 2 February both the Reserve Bank of Australia (RBA) and the US Federal Reserve announced their latest interest rate decisions.

In Australia the RBA decided to leave the cash rate unchanged at 5.25%. Analysts expects a slight rise, probably just 0.25% within coming months.

On the other hand, the US Federal Reserve has raised interest rates for the 6th straight time to 2.25%. Analysts expect the US rates to move gradually up to around 4%.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Australia ranked one of the ten most economically free economies

2005-02-02T09:04:00.000+11:00

Australia is one of the ten most economically free economies in the world, according to a report from the The Heritage Foundation and The Wall Street Journal highlighted in a statement issued by the State of Victoria, Australia.

The Index of Economic Freedom is an annual ranking of countries worldwide with ratings that reflect analysis of 50 different economic variables grouped into 10 categories: banking and finance; capital flows and foreign investment; monetary policy; fiscal burden of government; trade policy; wages and prices; government intervention in the economy; property rights; regulation; and informal (or black) market activity.

Countries are rated one to five in each category, one being the best and five the worst. These ratings are then averaged to produce the overall Index score. Overall, the scores of 17 countries in the Asia-Pacific improved while the scores of ten countries in the region declined. Hong Kong and Singapore remain the freest economies, with Australia and New Zealand are also in the top ten.

For the first time in the Index's eleven year history, the United States does not rank among the world's 10 freest economies despite its score remaining unchanged from the previous year. Improvements in the economies of Australia, Chile and Iceland enabled these countries to surpass the United States. According to the report, Australia was recently given accolades as one of the world's most entrepreneurial countries and one of the best destinations for a rich and relaxed lifestyle.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

$874m of Australian wine sold in USA

2005-01-31T14:52:00.000+11:00

Australian wine producers had their best year ever in 2003-04 with a bumper grape harvest eclipsing the previous 2002 record, according to figures released last week by the Australian Bureau of Statistics.

Overseas exports of Australian produced wine increased 13% on the previous year (584 million litres) with a total value of $2,494 million. However, the average price per litre fell 9% to $4.27 (down from $4.67 in 2002-03).

The United Kingdom was the main country of destination for exports of Australian wine, taking 225 million litres (38%), followed by the United States of America at 175 million litres (30%). Other major markets included Canada (33 million litres), Germany (28 million litres) and New Zealand (27 million litres). In terms of the value of exports, the US market was the most lucrative at $874 million while the UK was $849 million.

The record grape harvest of 2.015 million tonnes was over a third higher (35%) than the drought affected previous year and exceeded the 2002 previous high of 1.754 million tonnes.

The red grape crush benefited the most from the good seasonal conditions in 2003-04, with an increased crush of 38% (to 1.141 million tonnes). In comparison the white grape crush increased 35% (to 0.777 million tonnes).

The vintage grape crush reached a new record being well over a third higher (37%, up to 1.917 million tonnes) than the previous year and almost a fifth higher (19%) than the record set in 2002.

Winemakers increased beverage wine production by over a third (35%) to a record 1,401 million litres. Table wine inventories rose by almost a fifth (18%) to 1,698 million litres at 30 June 2004.

Domestic sales of wine maintained steady growth rising 4% on the previous year to 417 million litres.

Sales of white wine topped sales of red/rosé table wine again by well over a half (59%) of the domestic table wine market.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Australian LNG to go to the USA

2005-01-31T14:30:00.000+11:00

The Australian potential to supply liquefied natural gas (LNG) safely and reliably into Mexico and the west coast of North America was the focus of a recent visit by Federal Industry, Tourism and Resources Minister, Ian Macfarlane.

While in Mexico and California, Mr Macfarlane met with key government and industry contacts to further promote Australia’s long-standing record of competitively-priced, safe and reliable delivery of LNG to our overseas clients.

The US Department of Energy forecasts that natural gas consumption in the US will rise from 22 trillion cubic feet (Tcf) in 2003 to more than 30 Tcf per annum within the next 20 years, with LNG imports contributing nearly 6 Tcf.

Until now receiving terminals have been located on the east coast, but there is now a recognised need to build LNG receiving facilities on the west coast as well as opportunities to Australian companies.

The growing demand for natural gas on the Mexican west coast also opens up major opportunities for Australian exports, with two LNG terminals proposed for Baja California receiving key government approvals.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

New Methods to Monitor Sheep Generated Methane Gas

2005-01-28T15:03:00.000+11:00

Research to reduce sheeps' production of methane - one of the most potent greenhouse gases - received a boost recently with the installation of new methane chambers at the Australian Commonwealth Scientific Industrial & Research Organisation (CSIRO)Livestock Industries'facilities in Perth, western Australia.

Shaped like cubicles, the see-through chambers enable researchers to accurately measure the continuous volume of methane produced by sheep over a 24-hour period.

They have been operating efficiently for more than four months in a trial to measure the response of sheep to products designed to reduce methane gas emissions.

Designed and developed by CSIRO Livestock Industries, the new chambers will be available for use for other research projects both within and outside CSIRO.

Livestock account for 12% of Australia's man-made greenhouse gases and similar levels in other countries.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Australian Sharemarket Records Best Day

2005-01-28T14:53:00.000+11:00

The Australian stock market has recorded its best day's gain in two years as a result of a resurgence in investors' confidence in both banking and resource stocks.

There is an expectation that the economy might slow over the coming year, but that the strength of these two sectors will deliver good returns.

The two year spike was also on the back of a bullish few days on the NYSE.

Banks and resources are being seen by analysts as ones that will improve over the year.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Annual Inflation Rate Now 2.6%

2005-01-25T16:52:00.000+11:00

The Australian Bureau of Statistics today announced that the Consumer Price Index (CPI) – the main measure of inflation - had risen 0.8% in the December quarter.

The increase is double that recorded in the September quarter, and compares to an anticipated rise of 0.6%.

Australia’s annual inflation rate now stands at 2.6%, the highest it has been since the September quarter of 2003. This is still within the Australian Reserve Bank's 2 to 3% target range.

With what could be generalised as “moderate” inflation, the Australian economy remains very strong and with the lowest unemployment rate in around 30 years.

For the final months of 2004, the Bureau of Statistics said the cost of living was pushed up by higher house purchase costs, petrol, cars, domestic travel, rent, fruit, beer and restaurant meals.

The CPI results have again raised expectations that official interest rates might be raised during 2005, to dampen the economy slightly.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com

Foreign Investment in Australian Real Estate

2005-01-24T10:51:00.000+11:00

The latest issue of "Real Estate Update" issued by the Real Estate Institute of Australia carries an interesting lead article on foreign investment in Australian real estate. The article is reproduced below.

"Australian real estate continues to be the principal sector for foreign investment in Australia, according to the 2003-04 annual report of the Foreign Investment Review Board, released this month. Total foreign investment in real estate increased from $21.9 billion in 2002-03 to $28.7 billion in 2003-04.

In 2003-04 there were 114 approvals for foreign investment in commercial real estate valued at $10.43 billion.

There were 3945 approvals for foreign investment in residential real estate, with a total value of $18.31 billion. Of these 574 proposals were for "off the plan" purchases, valued at about $300 million, as well as 292 applications by developers for advance approval to sell property off the plan. There were 28 fewer approvals compared with the previous year, but the value rose by $ 3 billion to $9.1 billion.

The main location of proposed investment in Australian real estate is Queensland, which attracted 38.6% of total by value, compared with 23.7% in 2002-03. The value of investment in residential real estate was $7.28 billion.

Western Australia experienced a significant increase to 17.1% of total investment by value, up from 6.2% in 2002-03. The value of investment in residential real estate was $4.36 billion.

Foreign investment in NSW real estate fell to 27.1% of total by value, down from 39.6% in the previous year. The value of investment in residential real estate was $4.08 billion.

Foreign investment in residential real estate in other states / territories included: Victoria $1.32 billion, South Australia $0.1 billion, Tasmania $0.03 billion; ACT $0.07 billion and Northern Territory $0.01 billion.

Singaporeans were the most significant investors in Australian real estate, with approvals valued at $3.37 billion. Other investors were from the United Kingdom ($2.288 billion); United States ($1.629 billion); Malaysia ($1.065 billion); Japan ($906 million); Germany ($898 million); other European Union countries ($481 million) and China ($121 million)."

The Real Estate Institute of Australia can be contacted via www.reia.com.au

For further information on the this or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com

Fosters Beer Group Bids for Wine

2005-01-18T13:17:00.000+11:00

In an endeavour to create the world's largest quality wine company, the Australlian Fosters beer group has bid to purchase fellow Australian company Southcorp wines, the producers of well know brands such as Penfolds, Lindemans, Wynns and Rosemount.

At this stage only an initial bid has been made, which Southcorp has described as inadequate and which, by the increase recorded on the same day by Southcorp's shares, stockholders also considered undervalued.

This will evolve into an interesting scenario. The outcome could cement the presence of Australian companies in the beer and wine markets world wide.

At present, Australian wines are some of the leading products in the US, UK and other markets and Fosters has one of the strongest positions in beer.

With the two companies merging, it would take their combined market sharein the US to #1 and the same in the UK.

For further information on the this or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com

Free Trade Agreement Up and Running

2005-01-17T13:02:00.000+11:00

The USA / Australia Free Trade Agreement (FTA) came into force on January 1st. If over the last 17 days you have not given thought to how you should be capitalising on this agreement - you should start now.

Already a major promotion is underway in LA this week, promoting the opportunities that the FTA will give Californian businesses which can look at exporting to Australia.

The opportujnities are endless.

For further information on the Free Trade Agreement or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com

Season's Greetings to All Our Clients, Colleagues and Friends

2004-12-16T13:14:00.000+11:00

This will be my last posting until mid January. I will be in the USA visiting clients, colleagues and friends - assisting them in their final arrangements prior to the USA / Australia Free Trade Agreement coming into effect on 1 January. I look forward to sharing a cold, northern hemisphere holiday season with them - rather than the usual Australian holiday on the beach

I can be contacted by email.

To all of Agar Carlyon's many friends and colleagues - we wish you all a very safe and enjoyable holiday season and a prosperous New Year.

David
editor@agarcarlyon.com

Australia / USA Free Trade Agreement

2004-12-15T11:41:00.000+11:00

Australian businesses will gain expanded access to the $200 billion United States government procurement market when the Australia / United States Free Trade Agreement (AUSFTA) comes into force on 1 January 2005.

Australia’s trade facilitation service – Austrade - with partners from industry and federal and state governments, has been conducting a series of seminars to assist Australian businesses identify and secure opportunities in the vast US government market.

Austrade estimates the US federal budget for technology procurement alone reached nearly US$60 billion in 2004 with more than half this amount being spent on homeland security.

Just as Australian exporters need to understand the challenges involved in doing business with US government agencies, including complex channels to market, strong competition and long sales cycles, so too will US companies need guidance in accessing the numerous opportunities now open to them in Australia.

The Australian government, through Austrade is assisting Australian ICT and defence suppliers with advice on contacts, US regulatory procedures, registering as a government supplier, and the best ways of presenting their products to US government buyers.

Agar Carlyon is set up with an office in Sydney and colleagues in the US to assist companies in accessing the Australian market.

As is well known, Australian companies have a good track record of developing innovative technology solutions and security products which have an excellent chance of interesting US government buyers. Agar Carlyon suggests that US companies look at the joint venture opportunities that could now be available.

For further information on the Free Trade Agreement or any other aspect of accessing the Australian market, please email me.

David
editor@agarcarlyon.com

Mining sector opportunity

2004-12-14T11:51:00.000+11:00

Readers should be interested in a proposed $1.85 billion iron ore project in the Pilbara region of Western Australia that could generate annual export revenue of about $1.6 billion. The project - known as the Pilbara Iron Ore and Infrastructure Project is owned by Fortescue Metals Group limited(FMG).

The project involves the development of mining and on-site processing plant assets together with a heavy haul railway to link the mining operations with a new port facility at Port Hedland.

This project should provide numerous opportunities for companies with a wide range of expertise to work with FMG.

The company is targeting annual iron ore production of 45 million tonnes per annum for an initial 20 years and is confident its project will be producing iron ore by the end of 2006. The dollar value of annual exports will be around $1.6 billion based on current iron ore prices.

Please email me if you require further information on this issue or any other business opportunities in Australia.

David
editor@agarcarlyon.com

Australian Navy Survey System Upgrade

2004-12-13T14:19:00.000+11:00

Brisbane based Seismic Asia Pacific Pty Limited has been chosen by Australian Defence as the preferred tenderer to upgrade the Royal Australian Navy's hydrographic survey system. The upgrade will be carried out on the Navy's PALUMA Class Survey Motor Launches as part of a program called Project SEA 1401 Phase 3. The upgrade will increase the Navy's survey capability and reduce the time to complete surveys of Australia's coastal waters. The upgrade will improve the shallow water surveying capability of the Navy and is included in the Defence Capability Plan.

The project will also provide portable hydrographic survey systems to be used on small craft, which will be particularly useful in reef-strewn areas. The portable systems will also provide an easily transportable system for emergencies. Three of the portable systems will be the more advanced tactical survey systems that will be deployed to the Australian Hydrographic Office Detached Survey Unit in Wollongong, to the HMAS Cairns base in north Queensland and to the Hydrographic School at HMAS Penguin in Sydney. The first system is planned to be installed by the end of 2005 with the remaining systems to be installed and tested during 2006.

Seismic Asia Pacific provides equipment, consumables, systems integration, engineering hardware and software maintenance support services to defence industries throughout the Australasian region as well as geophysical, hydrographic and oceanographic environment industries.

For further information about this item or other business opportunities in Australia, please email me.

David

editor@agarcarlyon.com

Yellow Tail producer crowned Australia’s top exporter

2004-12-10T11:05:00.000+11:00

Casella Wines – the producer of the Yellow Tail wine brand - has just been announced as the 2004 Australian Exporter of the Year.

Australia’s Trade Minister has congratulated Casella Wines on its outstanding achievements in exporting its Yellow Tail brand to the US, and stressed the important role the wine producer now plays in encouraging other Australian businesses to export.

Casella Wines is situated in the south western region of the State of New South Wales. The company has been exporting wine for the past eight years. It has only been in the last five that sales have escalated, spearheaded by the success of the popular Yellow Tail brand. Yellow Tail has proven to be the most successful launch of any Australian wine brand in the history of the Australian wine industry. It is now regarded as a phenomenon, selling more than 500,000 cases in the US in its first year of release. In 2003, sales rose to five million cases, and in 2004, sales are expected to exceed 10 million cases.

Contact me for more information about this or other business opportunities in Australia.

David
editor@agarcarlyon.com

Australian Dollar v the Greenback

2004-12-08T15:43:00.000+11:00

The $A has dropped slightly from its recent 9 month high in comparison with the $US, but the expectation is that as the US economy shows further signs of weakness, the $A will again strengthen.

To view charts of the $A v $US visit FutureSource ( http://www.futuresource.com/index.jsp)