New policy keeps trees of prime farms

Report: Eliza Wood
A new law will stop prime farming land being used for tree plantations.The Tasmanian government is amending the Protection of Agricultural Land Policy because it says fertile farming land in the state is becoming scarce, and must be protected for food production. There's been mixed reaction to the move.The President of the Tasmanian Farmers' and Graziers' Association says the policy strikes a reasonable balance: while it protects the top quality land, it also allows farmers to plant woodlots and shelter belts and build houses.Terry Edwards from the Forest Industries Association is concerned the policy will set a precedent in restricting the forest industries future capacity to buy prime agricultural land. "More importantly, it creates an extremely bad precedent in as much we now have a government telling private land owners what they can and can't grow on their own private land."However, Mr Edwards says the land to be protected, is not the sort of land forests would be planted on."That land that's classed 1, 2 and 3, the highest quality land is beyond the capacity of the forest industry to buy to establish plantations. The prices commanded for that land are extremely high and we could not establish plantations profitably on that land."Plantation opponent Malcolm Ryan, who is also a Burnie City Council councillor, says the government still doesn't recognise the value of the lower land classes. He says there needs to be a much broader view of the protection of land."We are going to be the foodbowl of Australia shortly and if we don't keep these plantations off this good producing land we are not going to be able to buy food. Because you look at what's happening in the Murray Darling region. You have a look at what's happening overseas with droughts, with turning food producing land into bio-fuel land. We are going to be very very important for food production in not only Tasmanian terms, not only in Australian terms but in a global context."While it appears farmers looking to build houses on smaller blocks may have it easier now, there's still concern at how local councils will interpret the policy and how consistent they'll be.The LGA says there will always be inconsistencies but could also give property owners more guidance as to what is and is not allowed.The changes will also make it easier to build houses on some farms.That's pleased the North West Action Group, a group that has been pushing for more leniency for housing approval approval.Dene Viney is a farmer near Wynyard who is preparing for retirement, and he's also a spokesman for the Action Group.He say the changes are just what is needed."We think that it gives us a fair bit of promise and hope there, it does make it a lot clearer and I think it probably makes it a lot clearer to councils."There's been a lot of indecision, there's been a lot of councils in the state interpreting this policy in all different ways, in very widely different ways, and I think now that this has hopefully given some assurance and guidelines."
In this report: Terry Edwards, Forest Industries Association; Malcolm Ryan, Burnie councillor

Turning a leaden Tasmania back into gold

By Rodney Croome

Interesting view on the current state of play in Tasmania.

The biggest challenges facing Tasmania's new Premier, David Bartlett, are expectations too high for him to meet.
This might seem counter-intuitive.
Surely Tasmanians will be pleased with anyone other than Paul Lennon after two years of government pugnacity, scandals and resignations.
But to assume Bartlett's ascendancy will simply be greeted with a sign of relief is to misunderstand the hopes and frustrations modern Tasmanians share.
The Tamar Valley pulp mill will be Bartlett's first challenge. Plenty of Tasmanians fervently hope he will scrap it.
Many of the mill's opponents have a vision of a Tasmanian economy powered by small, diverse, sustainable industries attractive to the global "creative class", a vision which Bartlett has frequently said he shares.
But the Government is simply too legally and politically entwined with Gunns' project for Bartlett to sink it outright.
Even if the new Premier scales down the Government's financial support for mill-related infrastructure, and imposes stricter environmental guidelines, the mill is too polarising to be anything but a political mire for him.
Opportunities lost
The dilemma is one which cuts across Tasmanian public policy.
The premiership of Jim Bacon, which brought a younger, aspirational generation of politicians like Bartlett to the fore, lifted Tasmania's hopes to new heights.
Rightly or wrongly, Bacon's name was associated with Tasmania's early 21st century economic boom, population spurt, cultural flowering, cutting-edge social policies, and resulting global applause.
His approval rating was correspondingly high at 78 per cent.
Lennon also has some important initiatives to his name in areas like infrastructure, housing and Aboriginal rights.
But they count for little against the common perception that growth has slowed, that opportunities have been lost, and that the world is laughing at us (which is what Tasmanians hate more than all other indignities rolled together, and will change anything and dump anyone to avoid).
Under former strongman premiers like Eric Reece or Robin Gray a pulp mill might have masked all this.
Like dams and factories of old, a mill might once have been sold to a large slice of Tasmanians as a solution to our problems, instead of a cause.
But too much has changed. Too many Tasmanians have heeded the environmental message. Lennon had too little of Reece's affability or Gray's cunning.
As a result of this, the golden Tasmania we were promised under Bacon seemed to turn to lead under his successor.
That Lennon constantly invoked Bacon's name to legitimise his rule only deepened the perceived contrast.
Lennon 17 per cent approval rating is Tasmania's punishment for not fulfilling its raised expectations.
Bartlett's task, then, is not simply to bring better standards to government through ethics commissions, as important as that is.
It is to quickly meet and exceed the high expectations that sank his predecessor.
It is to turn today's leaden Tasmania back into gold.
Opposed, inseparable dreams
To understand the depth of the problem facing Bartlett, and its possible solution, it is important to understand the two opposed and inseparable dreams which flow through Tasmanian folklore, literature, history and politics.
One dream is in fact a nightmare of exile, tyranny and poverty, of grey mountains that forbid and dark forests that kill.
This Tasmania has many names, from "the Fatal Shore", through Ned Kelly's cursed "Dervon", to the more contemporary "Loser-land".
But they all describe the same hateful place of disgrace, failure and misery, so immune to betterment that escape or death are the only tolerable options.
The other Tasmanian dream is of paradise on earth, a place of peace and plenty where mountains stand for freedom, and forests for love.
This Tasmania also has many names; "the Grand Isle" of early Aboriginal activists, the sweet "Apple Isle" of our prosperous farmers, "the Heart-shaped Isle" of our sentimental writers, "the World's Beacon" of environmentalists. All of these names speak to the hope that we can inspire humanity with the riches and accomplishments of our little homeland.
According to James Boyce's recent history, Van Dieman's Land, this sun-lit dream of a benign Tasmania is at least as old as its darker twin.
A quick survey of contemporary Tasmanian literature shows it remains at least as strong in our shared imagination.
Every political issue in the island state plays itself out on the stage set by these two dreamt Tasmanias.
Every political program is measured against our exaggerated hopes and fears, every dispute is intensified by them, and every new idea or vision becomes a metaphor for them.
Jim Bacon knew this.
For all his faults, particularly on forest policy, he was a popular leader because he told us a story about ourselves that gave voice and grounding to the dream of a greater Tasmania, or "the New Tasmania" as he called it.
For all his attempts, Paul Lennon could not tap the same vein of optimism and hope.
Too many Tasmanians feared he was instead leading us back to "Loser-land" and they deserted him.
The dream of Tasmania as "the Grand Isle" now awaits another champion.
If that champion is Bartlett, it will be despite his inexperience as a leader, and because he emulates Bacon at his best.
If it is the state Liberals, it will be despite their decision to sit still and wait for power to fall into their hands, and because they need to emerge from the shadow of the state's far right.
If it is the Tasmanian Greens, it will be despite the dominant image of them as competent and necessary opposers, and because their environmentalism is inspired directly by the benign and fruitful Tasmania.
Whoever voices Tasmania's bright dreams and banishes our dark nightmares will win the island for many years to come.
But beware; Paul Lennon's fate shows that those who try and fail pay a heavy price.
Rodney Croome is a former editor of the Tasmanian literary magazine, Island.

Some good GM discussion from ABC Country Hour

Some good GM discussion from ABC Country Hour
Tasmanian Country HourWednesday, May 28, 2008GM Technology Forum - the farmers' perspectiveReport: Cameron WilsonThe Tasmanian Farmers' and Graziers' Association supports the removal of a blanket ban on GM technology.It says crops should be assessed on a case by case basis.Ian Whyte is senior officer in charge of policy with TFGA and he says the forums are impartial"Our objective very much in this series of forums is to have more information on the table.""This is a deliberate exercise to that end.""While by and large the speakers did express the benefits of GM they weren't the only things, they also expressed disbenefits and the problems of communication that lie at the heart of all this."

In this report: Ian Whyte, senior officer in charge of policy,GM Technology Forum - the ethics of GM technologyReport: Cameron WilsonWhat are some of the biggest ethical questions when it comes to GM technology?Dr Lucy Carter is a research consultant with he University of Queensland and she specialises in questions of ethics. She says the benefits outweigh the risks of GM technology as long as the risks are looked at on a case by case status."The first one probably would be health concerns and the implications of eating or consuming GM crops. That is a labelling issue primarily. As far as I know there are no health concerns, there is no data to show it is harmful in anyway to consume GM crops.With respect to labelling people feel they ought to be given the choice to purchase GM food... and here in Australia we have mandatory labelling laws to ensure that genetically modified food ingredients are labelled as such.

In this report: Dr Lucy Carter, research consultant, University of QueenslandListen: GM Technology Forum - what the scientist saysReport: Cameron WilsonThe Tasmanian state government is reviewing its GM policy to determine whether it should maintain the existing moritorium on GM crops.Alan Richardson from the CSIRO, is a principle research scientist involved in GM research, explains what is happening in Australia."At the moment in Australia we have three GM commercial crops, the first of those is a carnation produced by a bio-tech firm in Victoria and that's for flower colour and long vase life. The second one is GM cotton which is largely being produced by CSIRO and that GM cotton has inbuilt insect resistance."He says that particular cotton strain was introduced into Australia in 1996 and now accounts for 90per cent of all cotton grown. He says the strain has resulted in an 80per cent reduction in the need to use pesticides. "Canola has caused a little bit of controversy... State governments have seen a need, because it is a food crop, of imposing moratoriums and those moratoriums have been lifted in Victoria and New South Wales.""In the next generation of GM crops we do have traits that will be of more significant benefit to the consumer. And I can give you one example. At the CSIRO we are developing oil seed crops like canola that have inbuilt production of Omega 3's. Omega 3's have tremendous health benefits, there's widespread community acceptance of omega 3's and to produce them in plants will be a tremendous technology and breakthrough that his very large benefits to the consumer."Mr Richardson says there are some risks involved in GM technology. "The important thing is that we identify the risks and where are risks are identified we appropriately manage those risks. And GM technology, like all technology... does come with some risks but as long as we identify those risks and appropriately manage those risks then they do offer tremendous opportunities to go forward for the future."He says risks to human health is not a major issue because Australia has a very safe food supply.

In this report: Alan Richardson, senior principle research scientist, ABARE faces inaccuracy and GM bias accusationsReport: Jane BardonThe Federal Government's agricultural forecaster has answered criticisms of inaccuracy and bias by saying it sometimes can't tally its modelling with the real world.The Australian Bureau of Agriculture and Resource Economics has been accused of misleading over oil supplies and genetically modified crops.A series of unequivocally pro-GM crop reports from ABARE has raised eyebrows among opponents.Now ABARE has admitted to a Senate committee that some of its reports are based on research peer-reviewed by other scientists, and models which can't factor in real world scenarios.Greens Senator Rachel Siewert questioned ABARE head Phillip Glyde about the latest, which said regional Australia will lose money if it doesn't adopt GM crops.She said when factors like climate change, market resistance, segregation costs and weed problems hadn't been considered, conclusions were likely to be wrong.Mr Glyde replied: "What you are talking about in terms of describing the real world is often not amenable to the modelling. You can't often factor in the real precision of the real world, so what we do is describe an illustrative scenario. We make abundantly clear in the document where the assumptions are."ABARE analyst Dr Jammie Penm denied assumptions that GM crops will increase yields were based on any field trials run by GM crop companies.But they weren't run in Australia."Quite a large number of the reports are published... are internally renowned professional journals. Naturally I can not give a guarantee that they are all 100% unbiased."Nationals Senator Fiona Nash asked ABARE's Phillip Glyde whether anyone in export markets had actually been asked about attitudes to buying GM crops from Australia.He replied: "I'm pretty sure we have had no discussions with the export market. What we are talking about here is a desktop study."That didn't satisfy Senator Nash:"You need to take on board that you need to be much clearer about the fact that you are using desktop studies, modelling, that you are using a whole range of assumptions, when what you have in print, clearly has a leaning towards that we will be worse off if we don't use GM canola. That is the impression that it gives."ABARE was also accused of grossly underestimating looming oil shortages.Phillip Glyde said there are many factors behind the rising oil price.Greens Senator Christine Milne wasn't impressed."Rural and regional Australia depends on your forecasts for all sorts of reasons, and you've got it fundamentally wrong. That's why people are now feeling really angry now about this because they can't make the changes fast enough to relieve themselves of high prices because we're not ready for it, now don't you accept some responsibility for that?"Philip Glyde replied: "I don't accept the responsibility for laying out the assumptions behind our forecast, doing the best possible job we could in ascertaining the information and the data behind those and putting it forward."I am also very pleased to hear that all of rural and regional Australia is hanging off the forecasts of ABARE."Perhaps less so, in future.In this report: Phillip Glyde ABARE executive director; Christine Milne Greens Senator; Rachel Siewert Greens Senator; Fiona Nash Nationals Senator; Dr Jammie Penm ABARE analystListen:

Greenpeace recruits famous chefsReport: Will OckendenNew South Wales' and Victorian farmers are sowing the first commercial genetically modified crops. But this hasn't stopped Greenpeace. Its latest campaign against GM foods will use famous chefs to influence consumers.The chefs will sign a GM-free charter, agreeing not to use GM products in their restaurants. Neil Perry, head chef at one of Sydney's most exclusive restaurants, said he supports the campaign because Australia is viewed internationally as a "green" producer."I travel a lot around Australia and the world, and one of the things that comes through about people's perceptions about Australia is that it's a green experience. I just think losing something that you're able to pin to yourself as a good catch cry to make some noise about, seems to me to be losing something."Mr Perry said he doesn't use canola oil in any of his ingredients anyway, but hopes the government will amend labelling laws so consumers can choose what they're eating.Greenpeace was asked for an interview, but said they don't want to comment until the campaign's launch on Thursday.In this report: Neil Perry, Rockpool Restaurant in Sydney

More GM-free canola to Japan means bigger bucks for Tas farmers

The deal will treble the amount of canola grown in Tasmania.
A group of Tasmanian farmers has secured a deal to supply Japan with canola that's free of genetically-modified materials.
They'll combine with farmers from South Australia's Kangaroo Island to supply canola.
Two shipments have already arrived in Japan.
The deal will treble the amount of canola grown in Tasmania, to about 3,000 tonnes next year.
Keith Pengilley, from Tasmanian Agricultural Producers, says the canola is needed for Japan's livestock industry and for use in cooking.
"They identified Tasmania as being a reliable area to grow canola," he said.
"So they came to us and said this is what we do, can you produce canola to meet our specifications, which is GM-free which we can market in Japan as Tasmanian-grown canola."

New premier wants clever and kind state

TASMANIA'S new premier, David Bartlett, says his main aim is to make the state both clever and kind.
Mr Bartlett, 40, was elected unopposed as premier today following Paul Lennon's shock resignation after four years in the top job.
Mr Lennon, 52, said he was stepping down to spend more time with his family and to enable a smooth transition in generational change in the leadership.
Mr Bartlett, who will maintain his education portfolio, said after his succession he wants education to be the centrepiece of his platform.
"Tasmania can become a place that is both clever and kind," he said at his first news conference as premier.
"By clever I mean I want to see us invest in education as a centrepiece.
"I want us to have the best education system in the world, that lifts our educational outcomes from the lowest in the country to the highest in the country over the next decade.
"I want to see us invest innovation in our traditional industries ... and also in our new industries.
"And by kind, I want to make sure we are building opportunities for the least advantaged in our community.
"That we are looking after the children and the elderly and that we ensure that every Tasmanian shares in building social capital through the economic growth we have experienced and will continue to experience over the coming decade."
Lara Giddings, the state's health and human services minister, has been sworn in as deputy premier, replacing Mr Bartlett in that role.

Australia, Chile sign FTA

Australia and Chile have signed a Free Trade Agreement.
Trade Minister Simon Crean says two-way trade amounts to more than $850 million a year and Australia invests $US3 billion in Chile.
He says the deal is expected to come into force in January.
"It's an agreement of the highest quality. On goods, tariffs on all existing trade will be removed by 2015 and tariffs covering 97 per cent of trade in both directions will be eliminated from day one," he said.

Govt looking to encourage expansion of organic farming

The Tasmanian Government wants to expand the state's organic farming industry.
The Primary Industries Minister, David Llewellyn, says it wants to brand the state with clean and natural practices.
The Government is hosting a conference on organic conversion in Launceston this week.
Mr Llewellyn says organic produce commands premium prices in national and international markets.
"It's something that I really think is very important and we've redoubled our efforts to try to get some interest in organics, more than what is already very significant interest already here in Tasmania."

Defying President Bush, Senate Passes Farm Bill

By DAVID STOUT and DAVID M. HERSZENHORN
Published: May 15, 2008
WASHINGTON — The Senate voted overwhelmingly on Thursday to approve a five-year, $307 billion farm bill, sending it to President Bush for what is expected to be his futile veto.
The 81-to-15 Senate vote, like the 318-to-106 House vote on Wednesday, attracted broad bipartisan support and received far more than the two-thirds that would be needed to override Mr. Bush’s veto, should he keep his pledge to wield his pen.
Mr. Bush has said he wants to sharply limit government subsidies to farmers at a time of near-record commodity prices and soaring global demand for grain. Most legislators were not swayed by Mr. Bush’s description of the bill as bloated, expensive and packed with “a variety of gimmicks.”
Senator Harry Reid of Nevada, the Democratic majority leader, defended the measure as “one of compromise.”
“That’s what legislation is all about,” Mr. Reid said just before the vote.
The bill includes a $10.3 billion increase in spending on nutrition programs, including food stamps, that supporters called “historic,” as well as increases for rural development and land conservation programs.
It also extends many existing federal subsidies that the president and other critics say are difficult to justify in such flush times for agricultural producers.
Mr. Bush had sought an adjusted gross income limit of $200,000 above which farmers could not qualify for any subsidy payments. The bill passed by the Senate and House, however, allows farm income of up to $750,000 and nonfarm income of $500,000 per individual.
That $750,000 limit applies to only one subsidy program, so-called direct payments that are disbursed based on land acreage and regardless of current market conditions or even whether the land is still actively farmed.
While Mr. Bush has long called for curtailing subsidy programs, the farm bill is viewed as vital legislation both across rural America and in impoverished urban centers.
Only two Democratic senators, Jack Reed and Sheldon Whitehouse, both of Rhode Island, voted against the bill. The 13 Republicans who voted against it included Senator Richard G. Lugar of Indiana, a former chairman of the Agriculture Committee, who has called the measure fiscally irresponsible.
The three presidential candidates, Senators Hillary Rodham Clinton of New York and Barack Obama of Illinois, both Democrats, and John McCain, Republican of Arizona, were absent. Senator Edward M. Kennedy, Democrat of Massachusetts, also did not vote.
The willingness of so many Republicans to break with the White House reflected both the strong support for the bill and a growing alarm among many lawmakers about their election prospects in November.
Mr. Bush himself made a similar political calculation in 2002, ultimately deciding to sign the farm bill that year even though he had strongly opposed it. A senior official at the time said the White House had concluded it would be “political suicide” in the midterm elections to veto the bill that year.
This year, though, Mr. Bush seems intent on refusing to sign the bill. He has criticized it for months, and on Wednesday he issued a forceful veto threat. He urged Congress to approve a one-year extension of current law, which he said would be better than adopting the new measure.
“Today’s farm economy is very strong, and that is something to celebrate,” he said. “It is also an appropriate time to better target subsidies and put forth real reform.” The bill, he said, “spends too much and fails to reform farm programs for the future.”
On Wednesday evening, Scott Stanzel, a White House spokesman, reiterated the president’s opposition. “With its massive expansion of subsidies, special interest earmarks and budget gimmicks, this bill is wrong for American taxpayers,” he said. “The president will veto it.”
But in debate on the House floor on Wednesday, some Republicans were just as forceful in pledging to defy Mr. Bush should he use his veto pen.
“I know there is a veto threat from the White House,” said Representative Robin Hayes, Republican of North Carolina. “If the president decides to follow through I will be there voting to override him because we need this update for our nation’s policies.”
Should it reach that point, it would be only the second veto overriden during Mr. Bush’s presidency. The first was in November when Congress overwhelmingly rejected the president’s veto of a $23.2 billion water resources bill that authorized popular projects around the country.
In the House chamber on Wednesday, longtime critics of farm subsidies in both parties echoed Mr. Bush’s complaints about the current bill.
“Where’s the beef?” asked Representative Ron Kind, Democrat of Wisconsin, standing in the House floor next to a poster showing sharp increases in commodity prices — 126 percent for wheat, 57 percent for soybeans, 45 percent for corn. “Where’s the real reform?” he said.
Some critics have also pointed to earmarks in the bill, including a tax break for racehorse owners added by the Senate Republican leader, Mitch McConnell of Kentucky, and $170 million to benefit the salmon industry inserted by House Democrats from the West Coast.
Speaker Nancy Pelosi of California, in her own speech on the House floor, responded directly to Mr. Kind, whose proposals would drastically overhauling farm subsidies she had supported before the Democrats regained control of Congress in 2006.
Although the legislation is universally known as the farm bill, it actually directs far more money to feeding the poor than it does to helping farmers — about $209 billion for nutrition programs like food stamps, according to the Congressional Budget Office, compared with $35 billion for agricultural commodity programs.
In her speech, Ms. Pelosi praised the bill and said the increase on food stamps alone was reason to support it. She said that while more change would be needed, the bill made important improvements to farm policy.
“With this legislation we will help families facing high food prices,” she said.
At a news conference, the Agriculture Committee chairman, Representative Collin C. Peterson of Minnesota, said he expected the bill to reach the president by May 20 and a veto override to be approved before Congress leaves for a Memorial Day recess.
Both Mr. Peterson and the committee’s senior Republican, Representative Robert W. Goodlatte of Virginia, said the bill represented a strong bipartisan compromise.
“I am very pleased that both parties cast a majority of votes for this farm bill,” Mr. Goodlatte said. “We don’t have a two-to-one majority. We have a three-to-one majority.”
He added: “I believe that we now have the opportunity to say to America that this is a farm bill that truly does assure that we continue to have the safest, most affordable, most abundant food supply in the world. We have addressed the needs of America’s farmers and ranchers.”

No timeline for big infrastructure jobs

MICHAEL STEDMAN
May 15, 2008 12:00am
TREASURER Michael Aird has refused to put a timeline on when major infrastructure projects for the state will be delivered.More than $440 million in road and rail projects were promised by Labor during the Federal election campaign but only $19.4m was delivered in this year's budget. The rest, including $31.6m for the north-south rail line, $30m to upgrade the line from Burnie to Wiltshire, and $56m for the Brighton transport hub will have to be negotiated as part of Auslink II funding, which starts in 2009-10. Mr Aird said funding would be delivered "in a timely manner" but would give no further detail on when construction of projects like the Brighton bypass would begin. "The fact is all these commitments were obviously going to be cash flowed over a period of years, that is the normal process of fulfilling commitments of this magnitude and there is nothing surprising about that," Mr Aird said. "I am confident that our discussions with the Commonwealth Government won't lead to unnecessary delays -- it is not in the state's interest and not in the commonwealth's interest to slow these projects down." But the RACT said it hoped to see more money on the table upfront. "When we were expecting detail on how $446m in road and rail funding would be spent the $19.1m early start funding is a bit underwhelming to say the least," RACT spokesman Vince Taskunas said. Mr Taskunas said the RACT had hoped for a swift start on vital rail projects to take freight, particularly log trucks, off the road. "The Government now appears to be talking about implementing its commitments as late as 2013-2014, which is not only too long but it also assumes an election win," he said. Brighton mayor Tony Foster said he was satisfied funding promised for the south would be delivered, with planning work already underway on the transport hub and Brighton bypass. "These are things we have been calling for for 15 years while all the money has been spent in the North -- all this is doing is getting our fair share of infrastructure needs for the South," Mr Foster said. $11.1m has been provided in the current budget to conduct urgent maintenance on the Bridgewater Bridge. Mr Aird said that work would begin next financial year

Carbon offset in Launceston

The Launceston City Council and the Tasmanian Government are working together on a carbon offset promotion park at Newstead.
More trees will be planted at the Hoblers Bridge Reserve as a token carbon store and environmental display.
The Council's Parks Manager, Andrew Smith, says the trees could absorb the carbon emissions of scores of cars.
"It terms of offsetting against council's carbon footprints from its own light vehicles, the 12 hectares of plantation would account for about 60 cars, the emissions for about 60 cars a year.
"So that's what we're looking at in the initial trial period," he said.
Mr Smith says the project will begin with a three-year trial period.
He says there probably won't be any extra out-of-pocket expenses for the council, which makes the park budget-friendly too.
"We actually can cover our component within our existing allocation, because instead of mowing areas of grass we'll transfer that expense into spraying and planting trees.
"We're also going to have the $15,000 dollars coming from the State Government."

$20 BILLION BUILDING AUSTRALIA FUND WELCOME

Tonight’s announcement of a $20 billion Building Australia Fund has been strongly welcomed and should focus on ensuring our national freight links flow freely, said Ivan Backman, Chairman of the Australian Logistics Council (ALC).

“$20 billion for infrastructure announced in tonight’s budget is a substantial commitment to building the road and rail networks and ports required for our national future and will be embraced by our Transport and Logistics industry,” said Mr Backman.

“It is vital, however, that the bulk of these funds are directed to the economic arteries of our nation, our freight network.

The ALC recently released a list of the Top 24 Supply Chain Blockages and believes these should be given the highest priority for funding. The full list can be found at www.austlogistics.com.au.

“I note that the fund will also finance investment in broadband infrastructure. While this is important for our nation and should be welcomed, investment in these networks should be considered separately from funding for our transport supply chains including roads, railways and ports.

“It is welcome to see the $20 billion committed to the Building Australia Fund is in addition to the $22.3 billion already provided in previous budgets to AusLink 2 from 2009-10 to 2013-14.

“The ALC looks forward to working with the Federal Government to ensure the highest priorities are funded and addressed,” Mr Backman concluded

Memo exposes cost of US box scans

12 May 2008
by Justin Stares
THE massive cost of implementing US container security legislation has been revealed in a confidential memo passed to Lloyd’s List.
Imposing 100% scanning of all inbound boxes so terrorists cannot use them to launch an attack in the US would cost more than $500 per unit to US trading partners, says the European Commission.
Based on initial results from a pilot project in the port of Southampton and on “preliminary contributions from EU member states”, the commission concluded that “a simple calculation of total cost relative to the number of scanned US-bound containers gives an average cost/container that exceeds $500.”

Federal Budget

The Treasurer, Michael Aird, tonight congratulated Wayne Swan on his first budget.
“It delivers in the key areas of health, education and infrastructure and will ease the pressure on working families.
“This is a true Labor budget.
“I am pleased that the Federal Government has recognised the areas of importance to Tasmanians with three special funds for infrastructure, education and health and hospitals.
“The $20 billion for infrastructure, $10 billion for health and hospitals and $11 billion for education closely align with the Tasmanian Government’s priorities.
“I am also pleased at the funding commitments to water initiatives and broadband.
“Wayne Swan has honoured all Labor’s election commitments to Tasmania including $11 million for the Bridgewater Bridge, $4.5 million for the Midland Highway and funding for the Brighton and Kingston by-passes.
“I am heartened by the Government’s commitment to improve access to primary and chronic health care through the establishment of GP super clinics.
“Two new child care centres in Tasmania will be funded.
“There will be an increase for the passenger vehicle subsidy under the Bass Strait Passenger Vehicle Equalisation Scheme and the Tasmanian Freight Equalisation Scheme will be extended to cover freight from King and Flinders Islands and mainland Tasmania.
“I am confident that the new working relationship between the States and Commonwealth will deliver a fair go for everyone.”

Bass Strait subsidy welcomed

(ABC News)
Tasmania's Tourism Industry Council has welcomed the Federal budget's increase in the Bass Strait passenger vehicle rebate from $150 to $180.
The scheme provides a rebate against the fare charged by the TT-Line to transport a driver plus a passenger vehicle across Bass Strait.
It has not been increased for 10 years.
The council's chief executive officer, Daniel Hanna, says Tasmania can expect more tourists, who are more likely to visit regional areas, as they can bring their cars.
Mr Hanna says the rebate will also be linked to the CPI, which is even more pleasing.
"The tourism industry in Tasmania had lobbied very hard for this so, a one-off price increase from $150 to $180 we think is welcomed, and then the ongoing CPI will be very important as well," he said.
"The only deficiency that there has been in the scheme in the past is that it hasn't been linked to the CPI and therefore it hasn't kept up with increases in costs in bringing cars to Tasmania.
"It makes sea access far more price competitive and we know that people who come to Tasmania by sea will stay longer, they'll visit regional areas and they'll spend more when they're here."

Gumboot-led expansions at Blundstone

Blundstone Footwear has revealed plans to more than double the production of gumboots at its Hobart factory where about 250 jobs have been axed in the past year.
Some of the bootmaker's production was moved off-shore to reduce costs.
The final round of redundancies were announced yesterday and will see nine manufacturing workers lose their jobs in July.
But the possibility of re-employment has been flagged, with the company investing $1.5 million in capital and installing new machinery.
Blundstone's chief executive, Steve Gunn, says there is strong demand for gumboots, which has been driven by events like the mining boom.
"Whilst we're putting people off at the moment, the reality is that if we were to significantly grow our gumboot business we would need future increases in staffing but that's probably a, you know, post 2009 situation.
"We've invested considerable money in setting the factory up to be world class," he said.
The Textile, Clothing and Footwear Union's national president, Barry Tubner says it is a blow to workers who may have initially thought they were the lucky ones to have kept their jobs.
"There's no such thing as a good redundancy and the company announcing that this will be the final redundancy I don't really hold any faith in that statement but I hope to be proven wrong," he said.
Mr Tubner is not impressed and says he is surprised by Blundstone's plans for expansion.
"I don't think the original redundancies were necessary in the first place," he said.
Mr Gunn says the final lot of workers to go will be well supported when they leave in July.
"We'll be able to support those from day one, the disappointment of last year is that because of all the issues we had trying to get the government arrangements on board it took quite some time to provide support for them so from that point of view at least we're handling the whole thing a little bit more professionally," he said.
Blundstone is still making gumboots at its Moonah factory and will continue to employ 60 staff locally and 30 in Victoria.

TFGA membership fees set to rise

Report: Cameron Wilson
The Tasmanian Farmers' and Graziers' Association (TFGA) annual general meeting has been tough for the President and Board.As well as the standard items like the president's report and financial statements, today's TFGA agenda included a plan to raise more funds from its farmer members.Country Hour reporter Rose Grant says the financial position of the group was a major talking point at the meeting"There are certainly concerns about the state of the finances and the way the accounting has been done. "And more fundamentally real concern about moves to put in a base level of membership that's going to see everybody who's on the TFGA books invoiced for a base of $337 unless they are already paying more than that in levies.
In this report: Rose Grant, rural reporter

A true Labor Budget, says State Treasurer - Focus on middle-income Australia

Chief political reporter MARK BAKER analyses last night's Federal Budget and looks at what it means to Tasmania. THE State Government called it a "true Labor Budget", however, opponents have labelled it disappointing, conservative and slim on detail.
Federal Treasurer Wayne Swan last night delivered the first Labor Budget in more than a decade, which featured a $21.7 billion surplus and focused on middle-income Australia.
Mr Swan's Budget will see personal income tax to be reduced by $47 billion over four years, people on $48,000 a year to get a weekly tax cut of $20 and people earning $14,000 or less to pay no tax.
State Treasurer Michael Aird said the Budget delivered on the key areas of infrastructure, education, health and hospitals and would ease pressure on working families.
"This is a true Labor Budget," Mr Aird said.
"The $20 billion for infrastructure, $10 billion for health and hospitals and $11 billion for education closely align with the Tasmanian Governments priorities."
Mr Aird said he was also pleased water initiatives and broadband had received funding commitments.
"I am confident that the new working relationship between the states and Commonwealth will deliver a fair go for everyone."
Tasmanian Chamber of Commerce and Industry chief executive Damon Thomas said the Budget was responsible but low on incentive and productivity items.
"You can't buy off small business by having a red tape review and spend large amounts of time of tax reviews which will start from July to December next year," Mr Thomas said.
"They're good but businesses tends to be cynical and say red tape reform is a matter that governments have spoken about every year for 20 years.
Mr Thomas said the Tasmanian Government would need to receive its share of infrastructure funding promptly.
"All the large amounts of money are very good in the longer term growth of the country but everything you're hearing tonight gives you feeling that it's going to be held up.
"This Government is offering very large amounts of money in a very controlled tap. It's turning the tap on but it's really, really slow pressure."
Mr Thomas said the $21 billion surplus was an excellent result and increased funds for child-care and education would be good for Tasmania.
Tasmanian Liberal Senator Eric Abetz blasted the Government for removing the $37 million the Coalition had announced for hospitals to fund its own promises
The $37 million included $16 million for the LGH, $8 million for the Burnie hospital, and $8.4 million for new ambulances.
"Tasmania's health system is already at breaking point, and will be under even more pressure after Labor's Medicare surcharge levy change," Senator Abetz said.
Senator Abetz was also critical of the lack of detail regarding the other $730 million promised for Tasmania by Labor and said few promises were itemised as expenditure.
"Where is the money for Jodi Campbell's $2 million Launceston aquatic centre? Where is Sid Sidebottom's $12 million manufacturing centre?"
Tasmanian Greens Senator Christine Milne was disappointed that climate change did not feature more prominently in the Budget.
"That is really disappointing for those of us who want quick action and all we're getting is token gestures," Senator Milne said. "A lot of this Budget is photo opportunities and not a lot of substance."
Senator Milne welcomed the increase in the Tasmanian Freight Equalisation Scheme to cover King Island and Flinders Island and the boost to the Bass Strait Passenger Equalisation Scheme.
"But apart from that Tasmania seems to have only benefited to the extent of road funding and a lot of those roads and bridges are going to be for the log trucks for the pulp mill as much as anything else."

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Hobart Port

Article from:

SUE NEALES
May 13, 2008 12:00am
WHAT Richard Fader fears most is talk of Darling Harbour and Circular Quay.
For the co-founder of the Hobart-based Australian Shipping Supplies – with its national base in a draughty shed on Macquarie Wharf – turning Hobart's gritty working port into a sanitised tourist attraction is close to sacrilege.
But after attending the public meeting run by the Government's Sullivans Cove Waterfront Authority (SCWA) on April 17, that is the future he fears is ahead for Hobart's illustrious maritime heritage.
At the "Conversations in the Cove" forum, organised to discuss what was happening at the Railyards site on Macquarie Point, Mr Fader was shocked.
That was where he first saw maps and designer drawings showing that Hobart's commercial port area had been drawn into a web of power and influence governed by the Waterfront Authority.
Instead of listening to discussions about how plans to move the end of the railway line and its associated container depot to Brighton north of Hobart to make room for the new $1 billion Royal Hobart Hospital were progressing, Mr Fader found his Hobart business could be at risk.
At a powerpoint presentation by architect Tony Caro, co-winner of the Hobart waterfront international design competition run by the authority last year, a map was shown of the docks.
On the map, the boundary of the area under masterplan review as part of the Hobart Railyards project was no longer confined to the container depot, cement yard and sewage plant on Macquarie Wharf.
The thin red line now ringed the entire wharf, including the working port and docks. (See the maps here).
"I couldn't believe it," said Mr Fader. "I was just so shocked. When and how was a decision made between February and April 17 that the Waterfront Authority has taken over control from Tasports?"
Mr Fader said a working port appeared not to be part of the future.
Instead, he said, the talk was of canals, pedestrian walkways, waterfront apartments, office space, retail and mixed use precincts and entertainment areas, complete with pictures and images of urban design projects completed in other parts of the world.
New Buildings were shown along the waterfront edge of Macquarie wharf where the large wharf is now located, and where the US warship USS Tarawa has been berthed for the past four days.
All had public walkways in front of them and none looked like cargo or working port facilities, he said.
Instead, design sketches showed office and apartment buildings, or shops and conference centres like at Sydney's Darling Harbour.
Others have mentioned that beside the hospital, Macquarie Point will become home to a cruise ship passenger terminal and a new Antarctic Centre open to the public.
The big difference, says Mr Fader, between docklands renewal projects in Sydney's Darling Harbour, Melbourne's Docklands and on the Brisbane River, is that as the old docks were reclaimed for new trendy purposes, modern port facilities were built for commercial shipping elsewhere.
"We have heard nothing about that here," he said.
"Instead it seems that the Authority and its designers have decided that Hobart Port does not have a future, other than perhaps a few cruise ships, all entirely behind closed doors."
Mr Fader alerted the Tasmanian Maritime Network, made up of commercial shipping and maritime engineer companies, and the Tasmanian Polar Network, to what he had heard and seen at the April 17 meeting.
At the same time, meetings were organised with Hobart City Council mayor Rob Valentine and with Tasports marketing manager Charles Scarafiotti.
Mr Valentine, who attended the Conversations in the Cove forum, said neither he nor the council had any real power in the issue since the railyards and docks were government land, but he was concerned that mistakes might be made.
"It's all too easy to say now get rid of the port because it's not very busy today and doesn't fit in with some new plan for the war, but who knows what the future holds," Mr Valentine said. "It's so important to keep our options for the future open and to capitalise on our history, rather than to see our working port wiped out for some twee development like Darling Harbour."
Incat marketing manager Richard Lowrie, spokesman for the Tasmanian Maritime Network, said money and power was the problem.
"It's a prime piece of land that the Government owns and it thinks it can get a quick bit of cash for its Budget by selling some of it off to private developers," Mr Lowrie said.
"But if you lose it, and turn it into hotels and parkland and restaurants that's the end of Hobart's port and the end of Hobart's maritime heritage; you can never get it back."
Mr Lowrie, who stood as a Liberal candidate at the 2006 state election, accused Premier Paul Lennon of taking over the port by stealth.
"We want to meet with the Premier and ask him what are his objectives and is he giving the port away," Mr Lowrie said. "But we have been asking for three weeks and so far he has been too busy to meet with us."'
The problem, according to many port operators, is that the politicians and the public have been led to believe that Hobart's port is in decline.
But while container services have disappeared to Burnie, they say general cargo is picking up with the export of large amounts of value-added timber to Malaysia from the Southwood veneer mill.
The number of cruise ships visiting Hobart every summer is soaring, while Chinese and Russian governments are looking to make Hobart the new base for Antarctic scientific shipping activities.
"Who knows what the future holds?," says Polar Network chairman Bill Lawson.
Other operators talk about the future for oil and gas off Australia's continental shelf. Santos has two large oil and gas explorations ships working the West Coast between Burnie and Bathurst Harbour.
"We have a stewardship responsibility to enhance, not destroy, what has been handed to us for future generations," Mr Lawson said.
Greg Taylor runs his family's maritime engineering business which conducts about 80 per cent of the major shipping repair and refitting jobs in Tasmania.
He has found it hard to get Tasports to commit to making wharf space available at Macquarie Port when he is pitching for future tenders, such as naval repair jobs.
"They just won't give those commitments to us. It does make you wonder what's going on," Mr Taylor said.
"It's not hard to see what's happening. As soon as you start talking about putting a hospital and apartments there, it's pretty hard to have a real port anymore because the two things are incompatible."
The Waterfront Authority's Jeff Gilmore said there was no secret agenda to get rid of the port.
"There are no set plans, but you can't do work in the project area without understanding what's happening behind it," Mr Gilmore said.
"All we're trying to do is identify where the potential conflicts are and then work out how they can be accommodated better, but I'm not saying we shouldn't have informed the Maritime Network people better before we went public."
Architect Tony Caro said it would be a shame to see "the rich and varied uses of Sullivan's Cove being diminished".
"But at least everyone is talking about it and it sounds a lively debate, which in the end has to be good for our process of finding the best answers for everyone," he said.

Midlands farmers devastated by water ruling

Report: Penny Marshall and Verica Jokic
Farmers in the midlands say they are devastated over a Federal Government decision not to release emergency water for irrigation.The state government had planned to release water from Lakes Sorell and Crescent to farmers in Bothwell. But the Federal Government has now stepped in blocking that decision on environmental grounds. It says any water release could threaten the endangered golden galaxias fish. Bothwell farmer,Tom Edgell, disagrees and says the Federal Government's decision will instead prove catastrophic for farmers and families in the region."The minister's decsion not to release water from Sorell into Crescent actually puts those fish at risk. The golden galaxia exist in far greater numbers in Lake Crescent and Lake Crescent is a smaller lake than Lake Sorell and has far less of the rainfall catchment... so by keeping those gates shut from Sorell into Crescent he is going to deny the rising water level which is the key part of triggering the spawning event for the golden galaxia.""For Bothwell it's the only source of water for the town... It's integral to this district."So what's the water situation in Bothwell?"Pretty desperate. We're in the middle of a catastrophic drought. There is no end in sight. Our last hope for water for this district is snuffed out."
In this report: Tom Edgell, Bothwell farmer

Bass Strait travel cheaper

By RAELENE MOREY

A FEDERAL Government election promise to be honoured in tomorrow's Budget will make it cheaper to travel across Bass Strait.
Federal Transport Minister Anthony Albanese has announced that the Bass Strait Passenger Equalisation Scheme will be given $34.4 million to increase the standard passenger vehicle subsidy from $168 to $180.
The revised rebate, effective from July 1, will reduce the cost of taking a car to Melbourne from $72 to about $60 and will be indexed with the cost of living.
A 20 per cent rebate increase will also apply to motorhomes, buses, motorcycles, vehicles towing caravans and bicycles.
Tourism Industry Council Tasmania chief executive Daniel Hanna welcomed the announcement and said it would encourage travel on the Bass Strait ferries, which compete with the discount airlines.
"We know that people who travel by sea tend to stay a lot longer and visit our regional areas," Mr Hanna said.
Mr Albanese also announced the Tasmanian Freight Equalisation Scheme would receive $2.8 million over four years to cover intrastate sea freight shipped between Flinders and King islands and the mainland.
Last week Bass Labor MHR Jodie Campbell said she had received guarantees from Federal Treasurer Wayne Swan that more than $300 million of election promises made to Bass would be honoured in tomorrow night's Budget announcement.
"Every election commitment that we made in Bass will be honoured, absolutely, and I'm quite strong on that," Ms Campbell said.
Labor's promises include $15 million for the establishment of an integrated care centre in Launceston and up to $7.7 million for a new radiation oncology unit.
More than $140 million in federal funding will go to transport links for Northern Tasmanian industry.
A total of $34 million has been earmarked for North-East freight roads and $4.5 million for the Midland Highway.
The Regional Aquatic Centre has been promised $2 million.

China to become leading wine producer?

www.decanter.com by 2008-05-12
Chinese wine will conquer the world in terms of volume and fine wine, a recent study suggests.
According to the Future of Wine report, drawn up by London-based wine merchants Berry Bros & Rudd (BBR), China, which is already the world's sixth largest producer, will lead the world by the year 2058.
The report, which predicts the state of world of wine in 50 years, also says China will 'rival the best of Bordeaux'.
'I absolutely think China will be a fine wine player rivalling the best wines from France,' said Jasper Morris MW. 'It is entirely conceivable that, in such a vast country, there will be pockets of land with a terroir and micro-climate well suited to the production of top quality wines.'
Based on the opinions of its four Masters of Wine, the report also spelled out some encouraging predictions for lesser-known wine countries and stark warnings for other, bigger producers.
Climate change, it said, would favour eastern European countries such as Ukraine, Moldova, Croatia, Slovenia and Poland, as well as Canada, which, BBR said, 'could rival its American neighbour' the US.
The UK also stands to gain on its cross-channel neighbour, with the amount of English land devoted to wine production 'may rival that of France'.
Australia would be the big loser, it said, with the country too hot and arid to support large areas of vine.
'It will become a niche producer, concentrating on hand-crafted, terroir-driven, fine wine,' said the report.
Tasmania, it added, would be one of the beneficiaries.
By 2058, 'big brand booze' would dominate the market, with wine resembling cigarettes. It will be commonplace, said the report, to ask for 'Lindemans Light' or 'Waitrose White'.
'In 50 years, consumers will ask for wine by the brand name of flavour and won't know, or care, where it has come from,' said Morris. 'Grapes will be genetically modified to change a wine's taste and producers will add artificial flavourings to create a style wanted by consumers.'
Further predicted changes included off-shore floating vineyards, low-calorie wines, bulk wine shipping and environmentally-friendly packaging replacing glass bottles.
Others in the industry were more sceptical of the findings. Decanter editor Guy Woodward was unconvinced.
'While there's no doubt that climate change and increased ambition in certain regions will lead to a greater variety of wines on the shelves, the idea that China is going to be able to go from churning out large volumes of mediocre plonk to challenging the great names of Bordeaux and Burgundy in a mere 50 years requires a leap of faith,' he said. 'Half a century is a very short time in the overall evolution of the wine world, and I'd like to see how many Chinese and Ukrainian wine Berry Bros has on its shelves in 2058.'

Giant ship runs aground near Melbourne

Melbourne reporters May 09, 2008
A REPEAT of the Pasha Bulker fiasco ¿ when a large bulk carrier beached off the east coast for almost a month last year - was averted today after a container ship ran aground in Melbourne's Port Phillip Bay.The 160m-long vessel was stranded in sand at Hovell Pile, off Rosebud in the south of the bay, for a couple of hours after coming to grief at 6am. The Sydney-bound container ship Francoise Gilot lost power and drifted out of the shipping channel and onto sand in the south of the bay. Two tugboats were sent to help the stricken ship but it managed, under its own power, to pull free of the sand near Macrae. “She's free and she's making her way up to the north of the bay on her own steam,” Port of Melbourne Corporation spokesman Peter Harry said. Mr Harry said the two tugboats would meet the cargo ship and escort it back to anchorage in Melbourne where it would undergo a full assessment. He said the cause of the incident would be investigated, most likely by Marine Safety Victoria. “We think that she may have lost power and as a result that compromised the steerage of the vessel.” Early indications were that the ship's hull was undamaged and the pilot reported no breaches to the integrity of the ship, Mr Harry said. Victoria Police spokeswoman Marika Fengler said the ship would dock at the inner anchorage, about 3km south of Williamstown. “The Water Police will meet the ship, they'll board the ship and they'll breath-test the captain and crew as per usual procedure,” she said. The Pasha Bulker spent almost a month on Nobbys Beach, near Newcastle, last winter after running aground in severe weather.

Coastal climate case studies

SUE NEALES
May 08, 2008 02:00pm
TASMANIA has been chosen as the location for one of six national studies investigating the impact of climate change on the Australian coast.The Minister for Climate Change Penny Wong, this morning announced that the effect of climate change on the commercial East Coast rock lobster fishery and its reliant communities would be part of the new $1.2 million study. The six studies form the first stage of a National Coastal Vulnerability Assessment by the Federal Government under its new "Caring for our Coasts’’ policy. Senator Wong said the cases studies would provided information on both the impact and adaptability of coastal areas to climate change, including assessing its socio-economic impact. The studies will look at issues including the impact of climate change on coastal communoties, on commercial fisheries, and on infrastructure in remote oil and gas towns. The five other case study locations include Kakadu national park in the Northern Territory, the Gold Coast, the Pilbara in Western Australia and South Australia’s Yorke Peninsula. “This research will examine how these coastal areas are affected by climate change, and will provide valuable knowledge to help us plan for the future,’’ Senator Wong said. ``The Rudd Government recognises the need for us to adapt to the climate change we can’t avoid. The tender document for the new studies is looking for an organisation to conduct the review of the east coast rock lobster fishery. Australian Greens senator and climate change spokesperson Christine Milne recently called for a strategic effort across all levels of government in Australia to conduct detailed climate vulnerability mapping. She also wants to see planning laws brought into line with the ``real world’’, where climate change is already cause for concern. " Australia’s governments at every level are woefully under-prepared for the onset of increasingly serious climate change impacts,’’ Senator Milne said.

Tighter restrictions on ballast water

A Tasmanian marine biologist is calling for tighter restrictions on ballast water within and between states, to help stop the spread of sea pests.
University of Tasmania, Marine Biologist, Neville Barrett says DNA tests have confirmed another Japanese sea pest grateloupia turuturu, is invading Tasmanian waters.
"Tests have shown that it is certainly positively identified from the Bicheno region but our ongoing survey work indicates that the plants are certainly round the east coast of Tasmania from Bicheno certainly down to the Tasman Peninsula," he said.
Scientists believe it was probably introduced through ballast water from international ships, before restrictions on international ships were introduced.
Mr Barrett says once the pests are in Tasmanian waters, they are easily spread.
"There are still major problems with translocation of material within states and even between states, that certainly probably do need to be tightened up," he said.

Resolving the nation's port congestion.

The Tasmanian-based Australian Maritime College (AMC) is working on resolving the nation's port congestion.
It has created a new Port Development Unit which recently contributed to a $1.5 billion upgrade of a major miner's West Australian export facility.
An AMC study reassured Rio Tinto that 50 metres was enough space to separate the passing and berthed ships.
The Port Development Unit's Director Dr Martin Renilson says the AMC's research helped the company design the new dock.
"There's really no other way of being able to predict what the forces would be on the moored ship other than carrying out the experiments that we did," he said.
"So we were able to tell them whether in fact the case would work or not. That's pretty important I reckon."
Dr Renilson says the AMC is working with other Australian ports on design and congestion.
"At AMC, with the Port Development Unit we're looking at all sorts of ways we can help ports," he said.
"Ranging from the ship handling simulator looking at the way ships manoeuvre in ports, through to the hydrodynamics facilities, looking at the channel design and the interaction and so on, right through to our logistics and our environmental capabilities.
"We can apply all these to look at helping different ports."

Bullish in the China shop

Monday, 5 May 2008
By Tim Harcourt
China’s sudden rise as an influence on the global economy has been on everyone’s lips. With double-digit economic growth levels for almost two decades and a great leap up the global economic ranks (the latest World Bank report had China now outranking Germany and Japan as the world’s second largest economy on a purchasing power parity basis – that is taking into account what money can buy in China at its lower price levels), China’s global influence is a major chapter in the 21st century’s story of the global economy.
We are certainly feeling China’s influence here in Australia, particularly in this Olympic year. Look at the economic evidence. China now wins the gold medal as Australia’s number one trading partner in terms of merchandise exports, the silver as our number two export destination (after Japan) and gold again as our number one source of imports.
Services exports are also becoming important between China and Australia particularly in financial services, professional services (such as architecture law and engineering), education and tourism. China is also moving up the ranks as a source of foreign investment for Australia and more Australian companies are investing in China as well.
Major Australian corporates like BHP Billiton, Rio Tinto, Woodside, Telstra, Qantas, ANZ, AMP, Westpac and CBA all have China as a major plank in their global business platforms for expansion.
However, while the story at the top end of town is well-known, the evidence shows many small and medium enterprises (SMEs) are “hugging the panda” as well and are hopping on planes to Beijing, Shanghai and Guangzhou as well as the second and third tier cities like Kunming, Chengdu, Qiangdao and Chongqing to take advantage of the economic expansion of China on the coasts and increasingly in the inland regions in the centre and the west.
Austrade’s new research on China bears this out. In terms of exporting companies, in 1989 China didn’t even make the top 10, but now there are over 4250 Australian businesses exporting to China (on a good basis alone) putting China in sixth place in the top 10 ahead of major economies like Japan and Germany.
In addition, over 3000 Australian companies have bases in China and to respond to this increased demand Austrade now has 15 offices in the Greater China market. In terms of SMEs, according to Austrade-Sensis research, China is now up there with New Zealand, the USA and Britain as a major export destination, and China is regularly top of the pops when exporters are asked about future growth projections in the DHL Export Barometer.
So why is Australia doing so well in China?
First of all, there’s a strong historical relationship. Before he became prime minister in 1972, Gough Whitlam visited what was then Peking ahead of US president Richard Nixon and since then Australia has been a strong supporter of China’s quest to engage more fully with the global economy. In more recent times, Australia was a strong supporter of China joining the World Trade Organisation (WTO) despite some international opposition.
And now with Australia’s new Prime Minister Kevin Rudd being a fluent Mandarin speaker and keen scholar of Chinese history and culture, we can expect the Australia-China relationship to be pivotal to both nations and to the rest of the world too.
Secondly, there’s strong support from Australian business for engagement with China. Australian exporters have a very favourable impression of China’s potential and this may reflect their positive take on a potential trade past. According to the DHL Export Barometer, in terms of the 12 month outlook, the majority of exporters believe that China will be their number one market for growth with similar results expecting looking five and 10 years ahead.
Exporters also want more overseas trade representation in China and see the Beijing Olympics as major opportunity to make high level representative contacts and learn more about the expanding Chinese economic regions.
Thirdly, the Australian-China trade relationship is growing but also broadening and diversifying.
In the high-profile resources areas China’s insatiable appetite for coal, iron ore, alumina and liquefied natural gas (LNG) as it industrialises and attempts to spread economic activity to poorer provinces westward, has created another resources boom in Australia.
Not only is this creating enormous wealth in the resource rich-states like Western Australia and Queensland but the demand for resources in China is also creating a boom in related areas providing mining equipment, mining technology and services to mining (like software and training in areas like occupational health and safety) in the rest of the country.
China has also created opportunities for Australian manufacturing exporters. Many companies are exporting to China because of the limited size of the domestic market in Australia. Take the example of Longwall Associates, based in Mackay, which manufactures face conveyors for long wall mines in Central Queensland.
According to the managing director, Peter Van Iersel: “We have no choice but to export as in Australia there are just 28 long wall mines, compared to 52 in the USA but 1,300 in China! After we establish a foothold in the Chinese market, we will also consider branching out into Russia and India”.
The size of the Australian market is also an issue for companies that manufacture aviation equipment like Lochard (who produce flight monitoring devices) and Aviation Compliance Solutions (ACS) who provided related aviation services. ACS – which was formed by a group of Ansett employees who lost their jobs as a result of that airline’s demise – is a company that conducts conduct aviation operational safety and security audits for airlines.
The company has now conducted audits for 65% of China’s airlines – including Air China – and is now in talks to secure further business in China to expand its already dominant market share. ACS managing director, Jackie Barnes is positive about business prospects in the People’s Republic: “Once you’ve won your first job in China you’ll create the momentum to win further business,” she explained.
Professional services are also on the up and up. Australian architects (like PTW, who designed the famous “Water cube”, the aquatic facility for the Beijing Olympics Woodheads and Hassells) are doing very well in China – particularly in the second-tier cities for which Beijing is investing much needed infrastructure – and Australian lawyers (like Deacons, and Hunt and Hunt) are helping China-based Australian owned firms conduct in China. The challenge of climate change in China is increasing bringing in Australia assistance in environmental technology and design as well.
So what of the future? First things first, let’s bring on the Beijing Olympics! Just as it did in Sydney 2000 and at the Commonwealth Games in Melbourne, Austrade’s Business Club Australia (BCA) will be hosting major networking events in Beijing to ensure that Australian businesses – large and small – take advantage of the holding of the Olympics in China to meet a number of high level Chinese and international government and business figures. BCA has generated over $1.7 billion in trade and investment deals from previous major events so it is likely that a strong Australian presence in Beijing will significantly add to that tally.
Australian businesses from top to bottom are taking advantage of the growth potential of China. We’ll see from the strong expected Australian presence at the Beijing Olympics and beyond that our commercial engagement with China is a real sign of the times.

Tim Harcourt is Chief Economist of the Australian Trade Commission and the author of Beyond Our Shores and The Airport Economist

Australian Trade Deficit Narrows as Coal Exports Rise (Update4)

By Jacob Greber

May 6 (Bloomberg) -- Australia's trade deficit narrowed in March as iron ore, coal and wheat exports jumped, stoking an economic expansion in its 17th year.
The trade shortfall shrank to A$2.74 billion ($2.59 billion) from a record A$3.26 billion in February, the Bureau of Statistics said in Sydney today. The median estimate of 25 economists surveyed by Bloomberg was for a A$2.9 billion gap.
Rising exports will bolster Australia's $1 trillion economy, which expanded at the slowest pace in a year in the fourth quarter because of a drop in resource shipments. Wheat production may almost double from a year earlier amid surging prices and higher rainfall, a report forecast today. The government also predicts overseas sales of raw materials will increase by the most in three decades over the coming 12 months, driven by demand from China.
``We expect a sustained improvement in the trade balance as the year unfolds,'' said Su-Lin Ong, senior economist at RBC Capital Markets in Sydney. ``Export growth should strengthen,'' and import growth should slow amid ``further likely moderation in domestic demand'' because of higher interest rates.
``We anticipate much smaller trade deficits going forward and even possibly surpluses,'' Ong said. ``This would go some way to supporting overall growth.''
The Australian dollar fell to 94.42 U.S. cents at 4:43 p.m. in Sydney from 94.64 cents before the figures were released. The yield on the two-year government bond dropped 5 basis points, or 0.05 percentage point, to 6.52 percent.
Exports rose 4 percent to A$19.2 billion in March from February, today's report showed. Iron ore shipments jumped 30 percent and coal rose 31 percent. Wheat increased 12 percent and meat surged 8 percent.
Monthly Deficit
The monthly trade balance, which has been in deficit since March 2002, widened in the three previous months as exporters battled bottlenecks at mines and congestion at ports and railways. Crop production has been cut by the worst drought in a century in the southern parts of the nation.
Economic growth slowed to 0.6 percent in the fourth quarter as transport constraints reduced exports from Australia, the world's largest shipper of coal, iron ore and wool. Overseas shipments account for about 20 percent of gross domestic product.
Floods in the northeast of the country have also constrained shipments of natural resources. BHP Billiton Ltd., the world's biggest mining company, said on Feb. 25 that heavy rainfall in Queensland may cut its share of coal output from two ventures by as much as 15 percent of last year's total.
`Welcome Improvement'
Today's report is a ``welcome improvement in exports,'' said David de Garis, a senior economist at National Australia Bank Ltd. in Sydney. ``We will soon start to see the effects of gargantuan rises in coal and iron ore prices coming through.''
BHP and Rio Tinto Ltd., the world's third largest mining company, may negotiate a price increase of up to 85 percent for iron ore destined for China, the Australian Financial Review reported today, citing senior figures in the industry.
Resource-export sales may surge 30 percent to a record A$189.1 billion in the year ending June 30, 2009, the Canberra- based Australian Bureau of Agricultural and Resource Economics said on March 4.
Prices for Australia's top five commodity exports -- iron ore, coking coal, thermal coal, gold and crude oil -- have risen to records this year.
Wheat Production
A separate report published today by National Australia Bank forecast wheat production will almost double from a year earlier to 25.1 million metric tons, as weather conditions improve in Western Australia state and northern New South Wales.
Total imports rose 1 percent to A$21.9 billion in March, today's report showed.
The highest borrowing costs in almost 12 years are leaving households with less money to spend on imported goods, and forcing companies to cut purchases of foreign-made machinery.
The central bank left its benchmark interest rate unchanged at 7.25 percent today for a second month, saying there is mounting evidence the economy will slow this year after increasing borrowing costs in March and February.
Imports of household electronics fell 7 percent and clothing declined 3 percent.
To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net

Tamar Disgrace

Sadly this is the Tamar River in Launceston at present.

Incident at Launceston Airport

Debi's parents were on this flight!!

The Australian Transport Safety Bureau is investigating an incident at the Launceston Airport last week where two passenger aircraft were on a converging path in fog.
The bureau has received reports on last Thursday night's incident from Air Services Australia and the two airlines involved Virgin Blue and Jetstar.
The Director of Aviation Safety Investigation, Julian Walsh says it happened about 10 pm, just after control tower staff clocked off.
Mr Walsh says both planes made a missed approach because they could not see the runway due to fog and came to be on converging courses, although still some distance apart.
"What we will be doing is getting information from the air traffic control radar, from that we will be able to look at the flight paths of the aircraft on the night and will be able to recreate what occurred on the evening," he said.
"We can also listen to the recorded air traffic control transmissions and also the transmissions by the pilots of each aircraft who were speaking to each other."
Mr Walsh says both pilots were in contact the whole time and an investigation will determine what exactly occurred.
"We will try to do it as quickly as we reasonable can, but obviously it's important that we gather all the facts involved and that will involve getting information from the radar, getting information from radio recordings and also speaking to the pilots and the crews to get the information on their perceptions on what occurred on the evening."

TT Line update

The new head of TT-Line has identified rising fuel costs as one of the biggest challenges facing Tasmania's two Bass Strait passenger ferries.
Charles Griplas took over as chief executive in March, after 12 years with Peter Simmons at the helm.
Mr Griplas says he is confident the Spirit of Tasmania ferry services can continue to generate a profit.
However the 41 year-old says the company does face several challenges.
"The tourist market is very competitive, economic sentiment has a large part to play in that," he said.
"Also rising fuel cost and rising cost of maintenance and just general costs of production are high.
"And they're the challenges we face but we'll meet them and hopefully we'll deliver a better service and produce to our customers."

Pyrethrum growers visit China

By Eliza Wood

A land of contrasts and contradictions - that's China.A group of pyrethrum growers and field staff have returned from a two-week agricultural tour of the country.And while checking out China's pyrethrum industry turned out to be a minor part of the trip, there was still lots to see.Tim Groom from Botanical Resources Australia says he was struck by poverty and wealth living side by side."China is people on pushbikes with huge loads, that you can't conceive that anyone could actually cycle with. Dad's riding the bike and Mum's behind pushing for extra speed and they're being passed by Audis and Mercedes," he said.Field officer Pip Loane said the pollution was overwhelming."It was absolutely everywhere depending where the coal power stations and the chemical factories were positioned. In some places you could basically taste the metals in the air," she said.But the ingenuity of the glasshouses used for growing everything from flowers to fruit trees was impressive, according to field officer Jess Eglitis."They have the ability to grow things during their winter time, especially where snow falls, because of specially designed, insulated greenhouses," she said.
In this report: Tim Groom, manager agricultural businesses, Botanical Resources Australia; Pip Loane and Jess Eglitis, field officers, Botanical Resources Australia.

Apple crop well up on last year

By Cameron Wilson

Tasmania's apple crop is up about 20 per cent on last year.With the last fruit being picked this week, almost all growers are reporting an increase in yields. Australian Fruit Marketers managing director David Adams says its a return to a normal year after frost cut volumes last season."Obviously there are a few issues out there with lack of water and that hot, dry spell that we did have certainly does have some affect on the crop of fruit that you end up with."But it's not looking so bad and I think generally speaking growers are reasonably happy with the way the season's panned out so far."
In this report: David Adams, managing director Australian Fruit Marketers

Organic farming's compost woes

Report: Eliza Wood
Organic farming is coming under the spotlight because of some startling new information.It appears environmentally-conscious organic farmers might be contributing to environmental problems.Fresh research shows some farmers are being too heavy-handed with their compost, and this can lead to nutrients leaching into waterways, and more carbon being released into the atmosphere.Agricultural scientist Graeme Stevenson has been working on behalf of the Organic Coalition of Tasmania to bring together information he's gathered from organic farms over the past couple of decades.He says while the findings are shocking, he's hoping they'll lead to more professionalism in the industry."We pride ourselves as an industry in looking after the environment. This is a bit of an embarrassment. Well great, let's face it, we've found it, let's warn our growers and even build in in our certification a system of watching this a bit more. We've always been aware of over-application of compost as a general rule, but this is getting much more specific," he said.
In this report: Graeme Stevenson, agricultural scientist.

TPI Enterprises reveals its process

Report: Rosemary Grant
Tasmania's poppy processors are seeking increased quantities of poppies, and are offering farmers better contracts to grow at least 20,000 hectares of the specialist medicinal crop this year.All three companies operating in Tasmania have raised prices payed to farmers in a bid to increase production. The newest processor, TPI Enterprises, is also trying to extract more alkaloids using a unique patented process.TPI director, Jarrod Ritchie took reporter, Rosemary Grant inside the wire perimeter of TPI Enterprises' poppy processing facility near Cressy, to see the technology that extracts 98 per cent of the opiates from poppy straw and gives the company its competitive advantage."You can imagine essentially a large coffee percolator, or coffee plunder," Jarrod Ritchie said."We take that finely ground poppy straw, we don't use organic solvents in here, so we have a water based process. What we do is add a few little chemicals that are plant acids and that enables us to extract out from the poppy straw into a liquid, which we separate from the poppy straw using that large blue sort of plunger."
In this report: Jarrod Ritchie, director of TPI Enterprises

Michael Aird, MLC Treasurer

Tuesday, 6 May 2008
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TCCI Survey of Business Expectations
The Treasurer, Michael Aird, today said the latest TCCI Survey of Business Expectations showed Tasmanian businesses continued to have positive growth prospects.
Mr Aird said the TCCI’s business barometer indicator showed Tasmanian businesses believe growth will continue.
“While softer than the previous quarter’s result, it remains above the 50 threshold, which indicates the majority of survey respondents believe there are growth prospects for their businesses,” he said.
“Similarly, the general business conditions index declined in the March quarter but also remains in overall positive territory.”
Mr Aird said it was pleasing that Tasmanian businesses expected to increase their capital expenditure on building and structures and plant and equipment in the June quarter.
“Capital expenditure expectations for the June quarter remain above the 50 threshold, so businesses expect increased expenditure going forward.
“This is supported by recent data which show record levels of engineering construction work completed over the past year.”
Mr Aird said that that it was not unexpected that some indicators had softened from the March quarter survey results.
“It is not surprising to see an easing in some indicators and that confidence in both the Tasmanian and the national economies is lower than previous highs,” he said.
“This is entirely consistent with what is happening nationally and the Reserve Bank’s deliberate intent to slow domestic demand through interest rate rises.
“Tasmania is not shielded from the RBA’s actions.
“Survey respondents reported that the cost of finance/interest rates had become an increasing constraint on business growth in the March quarter.
“Inflationary pressures, with higher petrol prices and energy costs, will be having an effect on Tasmanian businesses.
“However, despite these headwinds, the survey clearly shows general business conditions remain in positive territory which shows the overall robustness of the business sector and the Tasmanian economy.”
Mr Aird said the survey showed the availability of suitably qualified employees continued to be the main constraint on business.
“Improving educational outcomes is a major focus for the Government.
“We are addressing the skills shortage through the Demographic Change Advisory Council and the Government’s Tasmania Tomorrow initiative, which is focused on improving post-school education and training opportunities.”

Michael Aird, MLC Treasurer

Tuesday, 6 May 2008

Exports Still Buoyant
Exports from Tasmania remained at near record levels in the year to March 2008.
The Treasurer, Michael Aird, said Australian Bureau of Statistics figures released today show exports were valued at $369 million in March 2008.
“This is the second highest monthly total since the data series began 20 years ago,” Mr Aird said.
“Despite easing by 2.4 per cent, the value of exports reached $3.52 billion in the year to March 2008.
“This strong export result is in line with the findings of the TCCI Survey of Business Expectations released today, which found that Tasmanian businesses reported growth in export sales in the March quarter.”
Mr Aird said Asia remained the most important export destination for Tasmania, with Japan being the single largest importer of Tasmanian goods in the year to March 2008, accounting for 19.4 per cent of the State's total exports.
Hong Kong was the second largest importer, accounting for 12.5 per cent of total exports in the year to March 2008.
Mr Aird said China and Hong Kong combined now accounted for almost 21 per cent of all Tasmanian exports.

Beware the spell check.

Oops - Correction from Newsletter.

One should not hurry when writing a newsletter and emailing it to many people. For those whom read my newsletter, I am sure you managed a grin where the word cranage was subsituted by spell check with carnage (although for those whom know the job I am talking about, I am sure they would agree it was a freudian slip).

Sorry.