News
Posted February 2011
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McKern Steel Foundation Announces Grants 
The McKern Steel Foundation will this week announce the recipients of its latest round of community grants, with 10 groups sharing in a total of $20,200.
Michael McKern says the Foundation is going from strength to strength, with each round of grants receiving a high number of quality applications.
“There is just so much good being done in our community, and the McKern Steel Foundation is not only very happy to support good work, but proud that we are able to give back in a way that makes a big difference,” he says.
The McKern Steel Foundation is all about creating opportunity and supporting the people in our community that make an important contribution to our social and physical health.
“This latest round of grants will support cricket clinics, cultural diversity and school adventure programs, kids’ camps and sporting clubs. And that’s just to mention a few. If your group is involved in developing community capacity and creating opportunities, you have a shot at a McKern Steel Foundation grant,” Mr McKern says.
Cheques will be awarded by the McKern Steel Foundation at a special event to be held at the National Hotel, Bendigo on Thursday February 9th at 5pm.
Further information about the McKern Steel Foundation is available here.
OneSteel gets $64m federal advance
OneSteel will receive a $64 million advance of federal assistance. 
The company has been promised $300 million over four years as part of money to help the steel industry deal with the introduction of a carbon tax.
The Federal Government says the advance is important for the continued viability of OneSteel's Whyalla blast furnace.
OneSteel will use the funds to support its waste reduction and recycling efforts. There will also be new training for some of its workforce.
Industry and Innovation Minister Greg Combet concedes OneSteel is facing challenges from a high Australian dollar, weak domestic demand for steel and problems on international steel markets.
"We will continue to work closely with the Australian steel industry to ensure that it is a flexible and innovative part of our manufacturing landscape," he said.
Whyalla Mayor Jim Pollock says the Federal Government's assistance package for steel manufacturer OneSteel is a shot in the arm for the Spencer Gulf city.
Cr Pollock says the announcement has put a lot of confidence back into the community.
"For quite some time, OneSteel have been in the hot spot if you like and there's been nervousness in the community from the retail people, the employees and the city in general," he said.
"This advance payment will certainly relieve some of that tension that has been here."
Cr Pollock says money spent on training provides confidence for the city's steel workers.
"Targeted skills training for employees ... I think that's a very, very important area where some of this money can ... [go] because skilled training and skilled employees are going to be hard to come by once all of these other projects come up, so I think skills training for employees is an excellent way forward," he said.
Source: ABC Online
http://www.abc.net.au/local/stories/2012/01/31/3419626.htm
Rinehart now Asia's richest woman, Forbes says
Iron ore magnate and media investor Gina Rinehart has doubled her fortune to $US18 billion ($17 billion) from last year to become the richest woman in the Asia-Pacific region, according to Forbes magazine.
Mrs Rinehart's wealth jumped as Korean steelmaker Posco bought a stake in her Roy Hill iron ore project, Forbes said on its website today.
Her estimated wealth puts her close behind the region's two richest people, India's Mukesh Ambani on $US22.6 billion and Hong Kong billionaire Li Ka-shing, with an estimated fortune of $US22 billion.
The 57-year-old may soon become the world's richest woman, surpassing the $US24.5 billion amassed by Christy Walton, of the family that controls the Wal-Mart Stores, Forbes said.
Mrs Rinehart's value soared as Asian demand for coal and iron ore drove up the value of assets across two Australian states.
She bought 10 per cent of Ten Network Holdings, the nation's third-ranked commercial television network, in 2010.
The billionaire this week increased her stake in Fairfax Media.
Last month, Posco agreed to pay 1.78 trillion won ($1.5 billion) to raise its stake in the Roy Hill mine in Western Australia from 3.8 per cent to 15 per cent.
In Australia, Ivan Glasenberg, chief executive of Glencore International, ranks as the country's second-richest person with $US7.2 billion after the commodities trading company listed last year, Forbes said.
Andrew Forrest, chairman and founder of Fortescue Metals Group, is third with $US5.3 billion.
Seven West Media chairman Kerry Stokes dropped from 10th to 12th on the list after his net wealth declined from $US1.9 billion to $US1.8 billion.
Gerry Harvey, founder and chairman of Harvey Norman, dropped off Australia's billionaire's list after a stock-price plunge left him with $US900 million, Forbes said.
Source: The Australian
Posted January 2011
Stronger dollar hits steel stocks 
The prospect of a strong Australian dollar for longer has sent the two big steel stocks down sharply today in the wake of the Federal Reserve's rate call yesterday.
Fed chief Ben Bernanke said that US interest rates would stay low for 18 months longer than expected, until the end of 2014, which virtually guaranteed a floor under the dollar.
A stronger US economy, amid any rate cuts from the Reserve Bank of Australia (RBA), would have narrowed the gap between the two currencies.
The dollar is now trading at or above $US1.06, up from $US1.04 two days ago.
BlueScope Steel was trading down 3.7 per cent at 39 cents below last year’s rights issue price and OneSteel was also hit, down 4.2 per cent at 80 cents a share in late morning trade.
The big mover among the big resource stocks was Fortescue Metals, up 3.2 per cent at $5.02 in heavy trading. This follows rallies across the board in commodity prices overnight.
With much of the Australian economy fragile and the dollar soaring, the news isn’t getting any better for the manufacturing sector.
Source: The Australian
http://www.theaustralian.com.au/business/opinion/stronger-dollar-hits-steel-stocks/story-e6frg9io-1226255258393
IMF warns Australia to safeguard against property collapse
In a shock move this week, The International Monetary Fund (IMF) has warned Australia’s main lending banks to make sure they have stashed away billions of dollars in reserve to cover a potential residential property implosion.
Worried that the Australian housing market is severely overheated, and that prices in the big cities are artificially high following an influx of wealthy overseas property investors from China, the IMF is warning of a major market collapse.
The news comes as new research shows that Melbourne has become one of the world's most unaffordable cities in which to purchase a house - ahead of London, New York and Los Angeles.
The IMF is seriously concerned about a “massive exposure to the residential mortgage market” in the country top four biggest banks.
The Commonwealth Bank, Westpac, NAB and ANZ hold about 80% of the nation's residential mortgage market, leaving them vulnerable in the face of a housing crisis.
"Combining residential mortgage shocks with corporate losses expected at the peak of the global financial crisis would put more pressure on Australian banks' capital," the IMF report says. "It would be useful to consider the merits of higher capital requirements for systemically important domestic banks."
Meanwhile, economists at ANZ have warned the Gillard Government's Budget cuts will slow economic growth by up to half a percentage point a year for the next four years. Deep cuts by the federal and state governments would produce "the weakest period of government investment since 1960," economists said.
The news comes after US real estate analyst Jordan Wirsz warned that Australia was facing a 60% house price "bloodbath", as reported in OPP.
Source: Overseas Property Professionals
http://opp.org.uk/news-article.php?id=6151
Little work for BlueScope Steel jobless
Just a small fraction of the workers who left the Port Kembla steelworks for the final time last year have found jobs.
Statistics compiled by the Federal Department of Industry, Innovation, Science, Research and Tertiary Education show that 174 of the 700 employees who left BlueScope Steel last October have found some other form of work.
The revelation, along with confirmation that a taskforce created in response to the mass sackings has met only twice in five months, is expected to trigger fresh calls for a greater stimulus package for the Illawarra.
Another 100 workers who were retained to help shut down sections of the plant are expected to leave permanently next month, compounding the effect on the Illawarra region's economy.
The Illawarra Stakeholder Taskforce, an action group convened by Prime Minister Julia Gillard after BlueScope Steel's decision to downsize last August, estimates that half of those leaving the steelworks may retire.
About 124 employees took advantage of a program which allowed redundant employees who did not want to leave to swap jobs with someone who did.
BHP Billiton has hired nearly 60 former BlueScope employees to work in the booming mining sector, including positions at its Illawarra Coal operations.
Another 60 former employees will soon be offered roles with BHP or are in the final stages of the engagement process.
"BHP Billiton has been proud to support people affected by BlueScope Steel's operational changes," said Illawarra Coal head of external affairs John Brannon.
However, the taskforce believes 330 people are still searching for a new job nearly three months after finishing work.
Meanwhile, the Mercury has confirmed that the Illawarra Stakeholder Taskforce has met just twice since it was formed.
It is made up of political heavyweights, union and business leaders and local government representatives, most prominently the former UOW vice-chancellor Gerard Sutton.
It has officially met on September 9 and October 14 last year. A date is yet to be set for its next meeting.
Source: Illawarra Mercury
Australia Day a 'work in progress', says Father Bob Maguire
Breakfast barbecues drew huge crowds around Bendigo, as people celebrated Australia Day with their local communities.
Sausages in bread and a chance to appreciate local community achievers was enough to entice hundreds out of bed as early as 8am.
At Eaglehawk, special guest ambassador Father Bob Maguire struck a chord with the locals.
“I’ve heard this is the City of Greater Bendigo, but I think it’s closer to the greater part of Bendigo, isn’t that right?” the well-known priest asked the crowd.
Father Bob said the message of Australia Day was always changing, but was about moving with the times and accepting new people and new ideas.
“We’re creating a new Australia Day each year, it’s a work in progress,” he said.
Around Bendigo there were 11 community barbecues, mostly run by Lions Clubs.
Local citizen of the year awards were given out to residents who had done something notable for their community.
At Kangaroo Flat the Emu Creek Bush Band played their Aussie bush mix.
There were also rides for kids, with a Ferris wheel and jumping castle set up in Dower Park.
Source: Bendigo Advertiser
Strong rise in global steel output seen 
Strong demand growth in both China and India will support the steel industry, globally, with production growth of around 6.7 per cent forecast for 2012, according to a forecast.In an annual survey, Global Steel 2012, Ernst and Young forecast steel output growth to slow to compound annual growth of 2.6 per cent by 2015.
Overall, European steel consumption in 2012 is forecast to rise just 1 per cent, and 1.8 per cent in the US, hit by sluggish government spending and resulting declines in infrastructure outlays.
The World Steel Association has forecast China’s apparent steel consumption to slow to 6.0 per cent in 2012, from growth of 7.5, with India representing ‘‘the new growth frontier for global steelmakers’’, the study noted.
‘‘The Indian economy is better insulated from the global economy than other Asian countries because it does not rely heavily on exports to the developed market,’’ the report found. ‘‘However, in the globalised environment, no economy is completely decoupled from the world economy.’’
In 2011, world steel production is estimated to have risen 7.0 per cent to around 1.5 billion tonnes, thanks to buoyant demand in China and India.
But with only ‘‘stagnant or modest’’ growth at best for OECD countries, this will limit growth to another 7 per cent in 2012, again due to China and India.
Mike Elliott, Ernst and Young’s global and mining sector head, said steelmaking capacity increased by 80 million tonnes in 2011 to an estimated 1,890 million tonnes, with 2011 consumption at 1,398 million tonnes, resulting in 493 million tonnes of excess production capacity.
“There is now significant over-capacity in the steel sector globally. Until that is addressed it will continue to put pressure on the profitability of every operator in the sector,” he said.
China remains the dominant global player, accounting for 45 per cent of global steel production in 2011.
China is a net exporter of steel, with production exceeding domestic demand by 39 million tonnes in 2011, with the pace of growth in China’s steelmaking capacity is now likely to plateau.
India, the new emerging steel powerhouse, is likely to remain a net importer for some time despite rapid growth in its steelmaking capacity.
Although capacity increased 8.9 per cent between fiscal 2005 and fiscal 2011, this was outstripped by growth in domestic consumption of 13.1 per cent over the same period, the study found.
“Steel is a sector that has historically benefited from significant subsidies, concessions and protection in many countries around the world, with governments often under pressure to protect manufacturing jobs.
“Despite this, given the level of global steelmaking over-capacity and the efficiency and profitability gulf between the older plants and newer plants, rationalisation seems inevitable."
Source: Sydney Morning Herald
http://www.smh.com.au/business/strong-rise-in-global-steel-output-seen-20120119-1q7fm.html
Steel industry 'can't compete with China'
The admission came after Perth miner Gindalbie Metals revealed it had imported most of the steel for its $2.6 billion Karara iron ore project in Western Australia from China because the local bids were three times more expensive.
Gindalbie was accused of favouring its biggest shareholder, Beijing state-owned steel giant Ansteel, by awarding it the lucrative contract for 4000 tonnes of steel.
This follows intense debate over allegations that some companies are excluding local manufacturers by using foreign specifications on tenders and are being pressured to buy Chinese equipment as a condition of export contracts and financing deals.
The resources sector argues that it sources the vast bulk of the materials it needs for projects from local suppliers, but Chinese companies have the ability to produce some equipment at a much lower cost and on a bigger scale.
The Australian Steel Institute's industry development manager, Ian Cairns, said yesterday he could understand from a commercial perspective why resources companies were increasingly turning to China for cheap supplies of steel.
But he called on the Gillard government to implement local content policies that would put greater pressure on companies to award major contracts to the local steel industry, which was running at only 50 per cent capacity as major contracts went offshore.
"We're not talking about mandates -- the government just needs to set some policies here that would put community pressure on these companies," he said.
Mr Cairns cited the higher cost of doing business in Australia as the chief reason for the major price differential with China, although he cast doubt over whether local suppliers were in fact three times more expensive than their Chinese rivals.
He said Australian steelmakers and fabricators had to pay higher wages and taxes as well as contending with greater government regulation in areas such as occupational health and safety.
"The Chinese steel industry is also subsidised by the government and the yuan is undervalued by 30 to 40 per cent," he said.
Mr Cairns said the Australian steel industry had higher productivity rates than China due to the use of technology.
Unions this week demanded a government investigation into claims local companies were being locked out of lucrative projects and Julia Gillard vowed to pursue international legal action against China if hard evidence emerged.
Australian Workers Union national secretary Paul Howes said the crisis facing manufacturing was "compounded by the poor level of local content in major resource projects across Australia".
The Prime Minister also wrote to West Australian Premier Colin Barnett over his government's agreement with the developer of the $6bn Oakajee port and rail project, which says Chinese companies should be encouraged to provide fabricated-steel rail cars, engineering and construction services and debt financing.
Source: The Australian
http://www.theaustralian.com.au/national-affairs/steel-industry-cant-compete-with-china/story-fn59niix-1226249811880
Cook, Clark named Bendigo citizens of the year
Well known local businessman and community leader Robert 'Cookie' Cook and young achiever Patrick Clark have been named the City of Greater Bendigo’s Citizen and Young Citizen of the Year for 2012.Bendigo Mayor Alec Sandner announced the award winners during a ceremony.
Mr Cook was named 2012 Citizen of the Year for his contribution to the local community through sport, business and his charitable and humanitarian work.
Mr Clark, 18, was awarded the Young Citizen of the Year Award for his community service, charitable and humanitarian work.
Mr Clark completed VCE at Bendigo Senior Secondary College in 2011 is a strong leader with a passion for issues that affect young people.
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/news/general/cook-clark-named-bendigo-citizens-of-the-year/2425378.aspx
Rod Campbell to return to Bendigo council duties
McKern Steel Foundation committee member and Eppalock ward councillor Rod Campbell will return to council duties this month.The former mayor was struck down with the rare Guillain-Barre syndrome in December 2010.
Cr Campbell said he was excited to be returning to work.
"I am delighted at the prospect of returning to full participation in council matters," he said.
"I will do my utmost as a councillor to represent residents from the Eppalock Ward and indeed the whole of the City.
"I plan to make myself available to ratepayers to discuss any issues that are of concern to them.
I am available for residents to contact me by phone 5434 6203 or email r.campbell@bendigo.vic.gov.au."
Bendigo mayor Alec Sandner said he was pleased to see Cr Campbell return.
"I expect his return to be quite straightforward because he has kept himself informed with all council matters while on leave and has been a regular listener to Council meetings on Phoenix FM," he said.
"It is recognised that Cr Campbell is still undergoing rehabilitation and recovering from an extremely serious illness, so he will naturally have to balance his work and recovery."
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/news/general/rod-campbell-to-return-to-bendigo-council-duties/2413900.aspx
Rotary Club of Eaglehawk Australia day celebrations
Start time: 26 January 2012, 8:30 amEnd time: 26 January 2012, 10:30 am
Our Australia day celebrations begins with a FREE breakfast. The formal celebrations begin at 9:30am. Father Bob Maguire is our Australia Day Ambassador and will deliver a message. Activities for the event include:- Winners of the Eaglehawk Citizen and Junior Citizen of the year announced, musical items, children participate in a Fancy Dress Parade, 26 ers Birthday Cake cut and distributed to all present. This is a "True" community event held in Canterbury Park Eaglehawk. Everyone is welcome.
Location: Canterbury Park Eaglehawk
Cost: FREE
Contact number: 03 54469098
Contact email: drichards@iinet.net.au
Source: australiaday.vic.gov.au
http://www.australiaday.vic.gov.au/whats-on/victorian-program.html?task=event&id=889
Posted December 2011
Foundation applications conclude
The McKern Steel Foundation committee has again received a very healthy number of applications for the current round of funding. Michael McKern says the committee is looking forward to the challenge of distributing the available funds, saying, "The monetary value applied for is close to five times the prescribed amount, so our team will, as usual, conduct a very thorough analysis of each application."
The most recent deadline arrived on December 15, with funding announcements scheduled to occur around early February.
Applications can be made at www.mckern.net.au, with the next round of funding to close on June 15, 2012.
BlueScope's year could have been much worse
Editorial: Philip WenMaybe it's all the festive cheer that is getting to Insider. But after a long year, it might be time to take a closer look at the merits of some battered stocks.
The retail shareholder response to steel producer BlueScope Steel's $600 million capital raising was predictably underwhelming, with less than half - 310 million out of 649 million - of the shares on offer taken up at the 40¢ offer price. Understandable when you look at the year BlueScope and the Australian steel industry have endured. And yet, it could have been much worse.
Underwriter Credit Suisse was no doubt getting twitchy when the share price was hovering at 38¢ for much of the offer period.
But Insider also understands that some of the smart money, including hedge funds that have shorted the stock for most of its journey down, may be thinking the company's share price has finally hit the bottom after about an 80 per cent fall from the start of the year. The argument stems from supply constraints overseas, which have left analysts much more confident about steel prices in the medium term.
But even with a fixed balance sheet, is BlueScope a value story? Put simply, hitting the bottom is not necessarily the same as saying a company is on its way back up.
The uncertainty of the structural overhaul being experienced by the company would suggest better value could be had elsewhere.
Nonetheless, the company late yesterday was spreading the word around the market that the book-build, for the shares not taken up under the retail component of the entitlement offer, was ''well covered'' at 40¢, even before going to offshore institutional buyers overnight.
Last Friday, it also welcomed $100 million in government assistance payments as an important step in paying down debt - also the main motivation for the equity raising. But the receipt of government handouts serves to underscore the grim reality the company is trading in.
As chief executive Paul O'Malley (left) pointed out when announcing the $600 million raising last month: ''Earnings continue to be impacted by the ongoing environment of a high Australian dollar, low steel prices, high raw material costs and softer demand conditions in Australia.''
Shares in BlueScope will remain in a trading halt until Monday unless the outcome of the book-build is known earlier.
Source: Sydney Morning Herald
http://www.smh.com.au/business/bluescopes-year-could-have-been-much-worse-20111215-1owq5.html
Indian iron ore mining mess - Indian steel mills start imports – Report 
Business Standard reported that Indian steel industry, with no sign of abatement in the ongoing mining crisis that has snapped iron ore supply, has started imports.The report said that some smaller steel mills have already contracted imports, while major ones are said to considering doing so. The market is buzzing with reports that major steel companies have already begun imports.
An industry source said that “JSW Steel, Essar Steel and Chowgule & Company are understood to have imported for meeting their demand after supplies from Karnataka were cut.”
The industry source maintains the company imported 105,000 tonnes of high grade ore in two shipments from South Africa earlier this year. Another industry source said Essar and JSW have imported 90,000 tonnes each of iron ore lumps from Kumbha Resources, South Africa.
While JSW Steel and Essar Steel’s spokespersons categorically denied this, Chowgule had not replied to the mail sent by Business Standard.
As per report, iron ore imports are happening from South Africa at USD 130 a tonne CIF basis, work out costlier by USD 10 per tonne to USD 15 per tonne than the domestic ore.
If it becomes a trend, it would be significant, as India is a net exporter of iron ore.
Source: SteelGuru
http://www.steelguru.com/indian_news/Indian_iron_ore_mining_mess_Indian_steel_mills_start_imports_Report/241579.html
Australian house prices not sustainable, says Moody's
Global ratings agency Moody's has warned it has serious misgivings about Australia's housing market amid fears the property bubble will burst if Europe's debt crisis is not contained.In a new report, Moody's says it has Australia's mortgage insurance industry on "negative" watch and current prices for Australian houses are "not sustainable" despite recent falls.
The ratings agency warns it remains concerned about the medium-term outlook for the housing sector, as the eurozone crisis represents a "material" threat and Australia may face a re-run of the property crash in the US and Europe in recent years.
Another agency, Fitch, said in a report yesterday that the proportion of home loan customers running late with repayments had improved in recent months despite growing weakness in the housing market.
But Moody's says there are "meaningful uncertainties" for Australian housing and mortgage delinquency rates are likely to increase over the next decade.
"Capital city house prices have more than quadrupled and household debt has tripled since 1990. Simple metrics indicate that the current price levels are not sustainable," Moody's lead analyst Ilya Serov said. "The sensitivity of the mortgage insurers' portfolios to a serious economic downturn has yet to be tested at current house prices and levels of indebtedness."
Mortgage insurers such as Genworth and QBE cover banks for losses on home loans - generally those where borrowers own less than 20 per cent of their properties.
ANZ is less negative on the medium-term outlook but in research published yesterday, the bank's analysts said they expected house prices to drop further in 2012.
They expect Victoria to be hardest hit as the state's economy slows.
Latest Real Estate Institute of Victoria figures show Melbourne's median house price, at $551,000, is already down $50,000 from its peak a year ago.
Moody's said that despite its concerns, Australian mortgage insurers were well capitalised and the outlook was unlikely to affect the short-term ratings of banks.
The warning comes as official figures show housing starts in Australia tumbled 9.4 per cent in the year to September - the fourth fall in five quarters.
CommSec economist Savanth Sebastian said the housing sector was going "nowhere" as potential buyers sat on their hands.
Most economists are tipping the Reserve Bank will lower rates to 4 per cent in February to further insulate the Australian economy from the global downturn.
"(A) resurgence in housing activity will be needed to support broader economic growth over the coming year," Mr Sebastian said.
Source: AdelaideNow.com.au
http://www.adelaidenow.com.au/real-estate/news/price-slide-fears-send-shiver-through-market/story-e6frefgc-1226221779198
Bluescope applies for govt assistance
BlueScope Steel Limited (ASX:BSL) is planning to take advantage of the federal government’s Steel Transformation Plan, which became available on Friday.
It’s already applied for $100 million of industry assistance from the Plan, which is designed to assist the steel industry as the carbon pricing scheme was introduced.
BlueScope chief executive Paul O'Malley says the assistance is evidence the government wants a viable, competitive and innovative steel industry.
Bluescope hopes the assistance will help return the company to profitability.
BlueScope Steel Limited reported a loss of $1 billion for the 2011 financial year.
Source: Finance News Network
http://www.finnewsnetwork.com.au/archives/finance_news_network19402.html
Australian steel giants report weak 2011 results
Australia’s steel manufacturing industry could be looking down the road of obscurity, with the country’s two largest steel producers, BlueScope Steel and OneSteel, announcing weak 2011 yearly financials.
Bluescope Steel reported a US$940.85 million (approx AUD$918.27) loss compared with 2010, while OneSteel’s steel segment reported a AUD$193.4 million year-on-year loss.
At its Annual General Meeting in Sydney last month, BlueScope Steel declared its major restructure to exit the Australian steel export business was almost complete and the company reconfirmed its guidance for the first half of 2012.
Still, the Australian steel business was experiencing lower-than-expected trading, mostly due to a weak domestic building and commercial construction market, according to the company’s chairman, Graeme Kraehe.
“The Australian steel industry is experiencing sustained weak trading conditions. Domestic sales have been marginally weaker this half than in the second half of FY2011, as a result of a softer pipe and tube sector and weak building markets,” said Kraehe.
“Total new dwellings construction remains weak and our Lysaght business is seeing lower volumes as a result. Mining and engineering construction will be the key drivers of business investment growth in the short term.
“Performance of our distribution business continues to be below our expectations. This performance is almost entirely a result of lower margins due to soft domestic demand and the competitiveness of imports due to our high exchange rate.”
At the OneSteel Annual General Meeting, chairman Peter Smedley outlined the company’s success for the year ended 30 June 2011, during which it reported a statutory net profit after tax of $230 million – a result of its strategy to grow its mining and mining consumables businesses and diversify its exposure away from domestic construction and infrastructure cycles.
“While our Iron Ore and Mining Consumables businesses performed well during the year, our Australian steel businesses were again severely affected by the adverse external environment that included very weak domestic and international steel markets, as well as a rapid and very material increase in the Australian dollar. Our diversification strategy is continuing to better position the company for the future,” said Smedley.
“Our Australian steel businesses have gone through considerable challenges, and many people have underestimated the company’s ability to work through these challenges and succeed. These businesses are again facing a very difficult external environment which in the past financial year led to a disappointing and unacceptable performance.
"OneSteel has always recognised that it is the company’s responsibility to accept and deal with the challenges before it, and in August we announced we had commenced a labour and other cost reduction program as well as a review of our Australian steel product portfolio and facilities footprint.
“From a OneSteel perspective, policy areas including the Carbon Tax, the National Greenhouse and Energy Reporting Scheme, the Mineral Resource Rent Tax, Research and Development legislation amendments and the effectiveness of the Anti-Dumping Administration have all been areas of concern. We have been liaising with government on these matters and have been encouraged by announcements during this year on the Carbon Tax and Anti-Dumping in particular.”
Source: Manufacturers’ Monthly
http://www.manmonthly.com.au/news/australian-steel-giants-report-weak-2011-results
Home buyers priced out 
Despite one of the worst property slumps in two decades, many first-home buyers are finding it harder than ever to enter the market, with research showing they need at least $100,000 after tax to buy in half of Melbourne's suburbs.
The research, commissioned by The Sunday Age, has been labelled ''staggering'' by housing advocates, who say Melbourne's long-term problem with affordability is a threat to the economy. It paints a bleak picture for average income earners still hoping to get a foothold on the property ladder, with price rises in the lower end of the market bucking the overall price-slide trend. This is locking many families out of home ownership anywhere except on the far edges of the city's urban fringe.
Even the recent interest rate cuts and government incentives such as a 20 per cent discount on stamp duty, aren't enough to offset the growing costs, according to the research by Fairfax-owned Australian Property Monitors.
Analysts calculated how much a household had to earn after tax in order to buy a house in suburbs across Melbourne. The hypothetical buyer had a 10 per cent deposit, spent 40 per cent of their after-tax income on mortgage repayments, and qualified for the 20 per cent stamp duty cut and $7000 first home owner's grant.
The analysis revealed that a household needed to have nearly $103,000 a year in disposable income - roughly $145,000 of taxable income - to afford an established home at the city's median house price of $535,300.
With the average Victorian clearing about $52,300 after tax, first home buyers would be priced out of half of Melbourne's suburbs. Only a few places in the inner city, including Maidstone and West Footscray, would be considered affordable.
''These figures are just staggering - but they also show what first home buyers have known for a long time, that home ownership is out of reach for people on average incomes,'' said Sarah Toohey, campaign manager for Australians for Affordable Housing. ''Right across the city, we're pricing out average working households - and that's not good for the economy.
We need teachers, aged care workers, truck drivers, all kinds of workers to be able to live affordably in our cities, to keep the economy running smoothly.'' On these figures, a police constable (4th year) clearing $48,327 and a teacher (accomplished) on $49,890 after tax would find it very difficult to buy a home. Even a federal backbencher clearing $100,250 a year would struggle to buy a house alone.
Although Melbourne's property market is experiencing one of its worst runs in 20 years - the median house price fell nearly $21,300 in the 12 months to September - most of the value shedding has occurred in affluent inner and bayside areas, while many so-called affordable suburbs have experienced price rises.
''Looking at the median price for the whole city sometimes doesn't give you the full story of what is happening,'' APM economist Andrew Wilson said. ''There's certainly been a softening in the upper part of the market, but the situation can be much different at the lower end.'' House values in 115 of the 139 suburbs still priced below the city's median are either holding firm or increasing.
The result is that households earning $45,000 to $80,000 have seen their purchasing power erode in traditional ''mortgage belt'' suburbs such as Melton, Pakenham and Craigieburn. Most affordable areas are now in middle and outer suburbs at least 15 kilometres from the CBD; some are more than 50 kilometres out on the urban fringe.
BIS Shrapnel analyst Angie Zigomanis said the price rises were being driven by competition between first home buyers and other owner-occupiers searching for affordable places to live.
''It's a flight to affordability. People are moving into areas they can more easily afford. When prices go too far, people will readjust what they are buying,'' he said.
The problem could be even more severe than the APM figures suggest. A recent report by the Australian Housing and Urban Research Institute found that higher income families still struggle to afford a home because their living costs are higher.
''A single person on $100,000 and a family on $100,000 are going to require very different take-home incomes to afford a median property,'' the institute's Professor Terry Burke said.
Public sector worker Heather Scott gave up on her dream of owning a house in the inner city because she couldn't afford it and instead bought a two-bedroom villa unit in West Footscray for $385,000.
She's glad she bought when she did. ''It seemed to get more and more competitive with villa units with people who can't afford houses all starting to flock to those,'' Ms Scott said.
Source: The Age
http://theage.domain.com.au/home-buyers-priced-out-20111210-1ooxm.html
Victory aces competition
Bendigo Victory served up a winning feast at the community breakfast at Our Shed in Eaglehawk yesterday.
The Victory defeated YMCA, Bendigo Sandhurst Rotary Club and Challenges Accepted (pictured) to take out the cook-off title.
Other community groups knocked out during the weekly challenge included Bendigo Bank, Bendigo Advertiser, Jennings Conveyancing, Tweed Sutherland, Future Employment Opportunities, Bendigo Community Health and Victoria Police.
OneSteel fire leaves massive damage bill 
A fire at Whyalla's OneSteel plant has caused hundreds of thousands of dollars worth of damage.
The fire broke out inside a powerhouse building around 11.15pm last night. One man who was inside the building at the time escaped unharmed.
More than 50 MFS firefighters were sent from Whyalla, Port Lincoln, Port Pirie, Port Augusta and Adelaide to fight the fire and took three hours to bring it under control. They remained on scene until about 6am today.
The cause of the fire is not yet known, but MFS commander Glenn Benham said it was not suspicious.
Fire cause investigators left from Adelaide this morning.
The fire caused a black smoke over Whyalla overnight, and residents were advised to keep their windows and doors closed until it cleared.
Source: adelaidenow.com.au
Iron ore ship rents rise most in 3 months in Pacific on demand
Bloomberg reported that the cost of hiring capsize vessels to load cargoes at Pacific Ocean ports climbed the most in three months this week as mining companies paid more to book ships before Christmas.
According to the Baltic Exchange in London, daily rents for capsizes in the region advanced for a sixth session to USD 27,581. The 32% weekly jump was the biggest since the week ended September 2nd 2011. The cost to haul a metric ton of iron ore to China from Western Australia remained near the 18 month high reached, slipping 0.2% to AUD 12.76.
Braemar Seascope said that miners required more vessels than were available to ship ore from Australian ports, supporting prices worldwide and improving market sentiment. It added that "Owners showed confidence to push rates upward."
Data from the exchange showed that average capsize rents climbed for a sixth day to USD 29,359, the highest level since October 27th 2011 and up 47% in 2011. The ships transport about 90% of the 1 billion tonnes of iron ore carried by sea.
Capsizes are the largest vessels tracked by the Baltic Dry Index, a broader measure of commodity shipping costs, which gained 0.2% to 1,866.
Source: SteelGuru
A+ for Eaglehawk upgrade 
WITH a multimillion-dollar building project about to get under way and a new principal secured for the next five years, things are looking up at Eaglehawk Primary School.
Last year the school faced significant uncertainty over its future.
A merger with Eaglehawk North Primary School was earmarked by the government but was then scrapped after campaigning from the school community.
Since then, Eaglehawk identity Gordon McKern, who led the way for the school to remain open, has been working to reinvigorate the school.
This week contracts will be signed for a $2.85 million renovation of the heritage-listed building.
“Stage one works include a new slate roof, a new toilet block, new computer cabling and various other maintenance works,” Mr McKern said.
It is hoped stage one works will begin as soon as next week and be completed by the start of school next year.
“That will be followed by stage two next year, which will concentrate on improving conditions inside the school for teachers and students, new carpets, new floor coverings, new desks and a new front entrance,” Mr McKern said.
“It is an 1870s building and the front entrance reflects that, so we want to make it more user-friendly.
“As much as possible, we want to make the whole school building better for people with a disability.”
This week the school has also signed up a new principal, Kerrie McMillin.
Ms McMillin, a past principal at Inglewood Primary School, will take over from acting principal Neville Sharpe.
Next year is set to be a big one for enrolments, too. So far student numbers for 2012 are 30 per cent up on this year.
“There are 117 enrolled already for next year and that’s growing every day,” Mr McKern said.
“Of that there are 17 preps, which is three times as many as this time last year.”
As part of the ongoing redevelopment, Eaglehawk Primary School is holding a community barbecue in Dr Catford Park next Friday, November 25.
Contact the school for details.
Source:
Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/news/general/a-for-eaglehawk-upgrade/2360815.aspx
2 Doors back online 
After a six-week hiatus, Eaglehawk’s community internet cafe, 2 Doors, is reopening with a new youth worker at the helm.Nathan Hulls has taken the reins of the youth space in High Street with big plans to open it up to all sectors of the community.
From this week onwards, 2 Doors will be open Tuesday through to Friday from 3pm to 6pm.
“We are initially targeting after-school hours with young people, but we want it to grow to be 9am to 6pm because there’s just as much need from other parts of the community,” Mr Hulls said.
“It’s for people who may not have internet access at home, who want to get out of the house or who need a spot to do their homework.
“It also has a connecting part, we want people to come here and hang out, then we can let people know about the Eaglehawk youth Crew, which we run from St Matt’s in Long Gully every Tuesday.”
As part of his youth facilitator role at Future Employment Opportunities, Mr Hulls is running the internet cafe and youth group.
He has had experience volunteering with youth initiatives and recently started some motivational speaking at schools.
“I talk a lot about my experiences,” he said.
“I was born with a disability in my arms and coming through high school I was teased and bullied, then in my 20s my mother died quite young.
“I want kids to realise your destiny isn’t decided by what happens to you but by the things you do.”
Mr Hulls said the youth group and 2 Doors would help empower young people to get involved in their community and take control of their destiny.
“We want to get the young people to identify projects to be involved in or which are needed in the community,’ he said.
“There might be some girls interested in fashion and we could get someone from TAFE to come and help them organise a charity fashion show or something like that.”
Mr Hulls said Eaglehawk, like most places, had a lack of drug- and alcohol-free places for young people to hang out.
“There’s a great need for physical spaces where young people can feel safe and get some positive mentoring.”
To find out more about 2 Doors, visit its Facebook page www.facebook.com/2DoorsCafe.
Posted November 2011
OneSteel shares tumble
Shares in OneSteel Ltd have tumbled over nine per cent in the wake of a capital raising by BlueScope Steel Ltd and comments from its chairman Peter Smedley that conditions were expected to remain challenging.
Rival BlueScope Steel has announced a $600 million capital raising, in order to strengthen the group's balance sheet and pay off existing debt.
Earlier this week, OneSteel said it expects conditions in the Australian steel industry to remain challenging, and has yet to see any uptake in demand levels so far this year.
"In Australian steel, we are currently not seeing any improvement in overall activity levels or demand, with increased international economic uncertainty weighing on confidence levels," Mr Smedley told shareholders at the company's annual general meeting in Sydney.
"We are expecting conditions to remain challenging for these businesses over the remainder of the financial year."
Source: Business Spectator
Iron ore prices to cool off as China set to raise output
Iron ore prices, which have been steadily climbing to touch $200 per tonne, may cool off in the long run as China is all set to increase iron ore production. The country has just identified 4-5 billion tonne iron ore mines near Mongolia and this may impact their buying pattern in the global market. The current upswing may not continue for long as China is trying to bring new mines into production.
Since China is the largest producer of steel and is a large buyer of iron ore from the global market, the new development is expected to influence their purchases. Since they buy a substantial quantity of iron ore from India, a drop in their off take could have a bearish effect on Indian exports.
In the next few months, the outlook on prices is expected to remain bullish as the global steel industry is led by the revival in demand from the Chinese steel makers. The trading community expects prices to remain firm in the next few months.
Source: NDTV
http://profit.ndtv.com/News/Article/Iron-ore-prices-to-cool-off-as-China-set-to-raise-output-160035
House prices at risk from Europe crisis 
What an irony it would be if, just as our esteemed leaders finally squeezed their resources tax through parliament, there were no super profits left to tax.
If things keep heading south on world markets, the most the Mineral Resources Rent Tax will raise is a few musty old coins and some pocket fluff.
But that is the least of the government's worries. As outgoing Commonwealth Bank chief Ralph Norris has told BusinessDay, the sovereign debt crisis in Europe is threatening to descend into a fully-fledged credit crisis where banks stop lending to each other.
The implications of another meltdown in credit markets are dire. Roughly a third of the funding for Australian mortgages comes from overseas bond markets. Were a third of the big banks' sources of capital to suddenly dry up so would credit for housing markets here. Ergo, price drops.
This is the government's greatest fear, that the great Aussie dream becomes a nightmare. Hence the favours to the banks, the recent fillip to funding from “covered bond” legislation and so forth.
This credit market squeeze is, as they say, the worst case scenario - and one which was narrowly averted in 2008 at the time of the Lehman Brothers collapse and the Wall Street bailout.
Then, the US banks were way over-geared. Now it is the European banks; with their leverage of 25-times only a modest fall in asset prices renders them technically insolvent. Many say a large swathe of them are already insolvent.
Most are not in a position to lend - especially since their sovereign governments are battling to raise money themselves on bond markets. What chance does an Australian bank have of selling bits of paper (bonds) to investors if the government of Germany itself failed to get a bond issue away this week?
Euro zone rescue
The consensus on markets is that this encroaching credit crisis Mark II won't be averted until European leaders get their act together with a rescue plan for the euro zone, or commit US-style to printing trillions of dollars in new money.
Germany, with its haunting memories of the Weimar Republic, rampant inflation and the rise of fascism, is holding off on the printing-press option.
The other option is a rescue fund, an option for which many proposals have already failed and which requires leverage anyway, which again piles debt on debt.
Lest mortgage holders here fear a credit squeeze, and consequently falling house prices if conditions sharply deteriorate, there is also impending relief.
If banks do continue to lend to each other, and Europe gets its act together, rates should fall. The outlook for interest rates in Australia has improved dramatically over recent weeks. Since the Reserve Bank cut the cash rate from 4.75 per cent to 4.5 per cent, three-year government bonds have fallen in yield to 3 per cent (and the 10-year bonds hit a record low overnight).
That suggests the market thinks rates may drop by another 150 points over the next three years. Already the market is looking for a full one percentage point in rate cuts by March next year or another six 25-basis point cuts over the next seven months.
There is a yin for every yang in economics.
Downbeat view
The upbeat outlook for interest rates is squarely and proportionately due to the downbeat outlook for world markets.
There are few better indicators of the health and direction of the global economy than the Australian dollar. The Aussie dollar is a proxy for China, for global growth, for optimism itself, and it is now changing hands at 97.35 US cents, down 12 per cent from its July highs.
As the crisis in Europe deepened this week, and the deadlock over the US debt reduction plans remained unresolved, further economic releases from China spurred concerns that economic growth was slowing there as well (while fears flared anew over property price falls).
Vice-Premier Wang Qishan was quoted by China's official news agency Xinhua that global recession was a certainty. "The one thing that we can be certain of, among all the uncertainties, is that the global economic recession caused by the international financial crisis will be chronic".
Source: Sydney Morning Herald
So you think you can chef 2011
The last qualifying round is approaching, with Challenges Accepted, Tweed Sutherland, Jennings Conveyancing and Bendigo Police vying for a place in the final against Bendigo Victory at the YMCA.Over 4 big weeks at Eaglehawk's weekly Free Friday Community Brekky, local teams will cook you brekky as you judge: Presentation, Quality, Imagination & Yumminess.
The cook-offs will feature representatives from Bendigo Victory, Bendigo Bank, Bendigo Advertiser, FEO, Bendigo Weekly, YMCA, Community Health, Challenges Accepted, Tweed Sutherland, Jennings Conveyancing and Bendigo Police.
7.30am @ ‘Our Shed’, Sailors Gully Rd, Eaglehawk.
Qualifying rounds: Fri Nov 18, 25 & Dec 2.
Grand Final Cook Off: Friday December 9.
Last chance to win a weekend at Madison Spa Resort Echuca-Moama
Promotion ends November 30th !!...The more we lift for you, the more chance you get to lie back and relax.
Every time you get McKern Steel to do your T-Bar lifting before November 30th, you’ll go into the draw to win a fantastic weekend at Madison Spa Resort, Echuca-Moama valued at over $600.
The lucky winner will enjoy two nights accommodation for two in the luxury Scenic Spa Room with breakfast, champagne, 3 course dinner for two on one of those nights and full use of resort facilities.
McKern Steel will lift your T-Bars safely and efficiently for the low fixed rate of $165.
We can also deal with any problem that arises so even if you don’t win the big prize you’ll still be able to relax about your T-Bar lifting.
Call us on 5446 9202 and organise your T-Bar lifting right now.
Or email karrine@mckern.net.au or hayley@mckern.net.au.
BlueScope investors protest over pay 
BLUESCOPE Steel's shareholders have lodged a significant protest vote against the decision to pay $3 million in bonuses to senior executives despite a $1 billion loss and job cuts.
About 39 per cent of votes went against the remuneration report as the company suffered its first strike under rules passed earlier this year.
BlueScope will face a board spill if 25 per cent or more votes go against next year's remuneration report.
Chairman Graham Kraehe said after the meeting in Sydney that the company would consider the investor feedback.
"When we talk to shareholders about what they think we might change, we'll take that on board," Mr Kraehe said.
During the annual general meeting, Diane Grady, chairwoman of the remuneration committee, tried to explain to shareholders why the board had agreed to the bonuses this year, arguing that it was necessary to stop large resource companies poaching senior staff.
Ms Grady said shareholders' disappointment with payment of short-term incentive bonuses was understandable when the company had made a loss, but executives had endured reduced remuneration in the past without complaint.
"They are not a greedy bunch," she said. "If our executives come to believe that no matter what they do, no matter what they achieve, there will be no short-term incentives, it will be difficult for us to retain them, and replacing them could well be even more expensive."
The two-strike rule made retribution easy for unhappy shareholders, Ms Grady said, but she hoped shareholders would also consider the consequences of their vote.
"A no vote could have a particularly demotivating effect in a company like BlueScope that has taken its remuneration responsibilities seriously -- a company where executives, like shareholders, have worn the pain," she said.
Managing director Paul O'Malley outlined difficult conditions for the steel industry.
He warned that there was a structural change in international steel flows.
"Capacity utilisation internationally remains below 80 per cent, a sign that steelmaking margins will be low, and as a result in recent months major steel companies have followed BlueScope's lead and either shut or mothballed blast furnaces, particularly across Europe," Mr O'Malley said.
"There will need to be further reductions in steelmaking in the developed world over the next 12 to 24 months given the weak economic outlook."
Mr O'Malley said confidence in the industry had reached its lowest point since the global financial crisis, with poor global demand and the European debt crisis contributing to sentiment.
"Even the Chinese industry, which represents nearly half global steelmaking production, is struggling to deliver profits and is also temporarily winding back production," he said.
Australian demand was the most depressed it had been in a decade, apart from the global crisis.
Source: The Australian
Join forces or lose out, steel industry warned
THE government's new advocate for the steel industry says local suppliers need to club together if they want to win a stake in Australia's major resource projects.
Dennis O'Neill, who was appointed by Industry Minister Kim Carr in August, said the government needed to make it compulsory for companies developing major projects to post a list of the works that Australian companies could compete for early enough for them to have a realistic chance.
Mr O'Neill said he had spent his first few months in the job, which is intended to help local suppliers increase their share of resource projects, talking to fabrication contractors and construction companies.
He said companies needed a new approach to tendering.
"We have to make sure that the industry has the capacity, flexibility and know-how to tender," he said.
"Obviously, in a number of companies, you don't get all that expertise and you need to talk to a number of companies."
Mr O'Neill said he did not want to detail his findings before talking further to contractors later this month, but he said he had drawn two conclusions.
"You have to have the capacity to be able to deliver the project's scope of supply that you're tendering on, and that is working with the skill base we have in Australia. The second is to explore opportunities that may lead into alliancing."
Mr O'Neill's comments follow the release, under Freedom of Information, of the report by his predecessor, Cyril Benjamin, who found resistance among some Australian suppliers to forming alliances.
Mr O'Neill said he agreed with Mr Benjamin that the Australian steel industry suffered from high labour costs and a high currency and was competing against Chinese suppliers with an undervalued currency.
However, he said many Australian companies were at the forefront of technology to reduce the labour content of their work.
Mr O'Neill said he was satisfied with the quality management certification of Australian steel industry suppliers, which had been identified as a problem by Mr Benjamin.
He said the key for Australian suppliers was to get early engagement with resource projects so that they understood the scope of their needs and the capabilities required.
Source: The Australian
China eyes alternatives as India iron exports fall
A decline in iron ore exports from India following a crack down by the government to check illegal mining has prompted China to begin exploring alternate markets to source its requirement of the mineral, a senior official of China Minmetals Corporation said today.
"India's iron ore supply is not very stable. Who can tell what is the policy about the iron ore? Chinese companies are looking for alternatives," Shi Ming Li, the Assistant Chief Representative of China Minmetals Corporation, told PTI today.
Last fiscal, China imported 15% of its iron ore requirement from India, especially Goa, as the produce is priced less compared to imports from other countries.
"India should have a stable and transparent mining policy, which is important for miners," the representative of the state-controlled corporation said.
He was in Goa to participate in an International Iron Ore and Steel-Making Raw Materials Conference. He said China already has alternatives that can be explored to face the deficit.
"It's a turning point for the international iron ore market," Ming Li claimed, adding that Brazil and Australia have a lot of capacities that can be looked up to meet the requirement.
China, which has been sourcing iron ore from Australia, Brazil and South America, besides India, is also looking at countries like South Africa, Iran, Ukraine, Congo, South Africa, Zimbabwe, Indonesia and Venezuela for steady supply of iron ore.
Ming Li said China hopes that exports from India won't be banned. "But it is for the Indian government to decide their own policies," he said.
China does not have long-term agreements for iron ore with India, which usually opts for spot pricing.
Indian traders, too, conceded that the future of Indian iron ore in the Chinese market is uncertain.
"Indian iron ore exports' future is uncertain. We don't know what will happen tomorrow," said Prem Kumar, the spokesperson of Pisces Exim Pvt Ltd, a leading Indian iron ore exporter.
Source: Business Standard
http://business-standard.com/india/news/china-eyes-alternatives-as-india-iron-exports-fall/151150/on
Balance can be a household word 
Jane-Frances Kelly
Opinion
With the right choices, our cities need not lose liveability as they grow.
In June the Grattan Institute published a report, The housing we'd choose, that contained the first substantial survey of Australian housing preferences since the early 1990s. The survey showed that, contrary to myth, Australians want a mixture of housing choices, not just detached houses.
Many want to live in a semi-detached home or an apartment close to family and friends or shops. The problem is that the market does not provide nearly enough of this housing, especially in the middle and outer suburbs of Sydney and Melbourne. There are a number of reasons for this.
Residents, denied a say in how their neighbourhood develops, often feel they have little choice but to oppose all planning applications and all change. Developers point to barriers that prevent them building housing in established suburbs. State and local governments are caught in the middle and no one wins.
Meanwhile, the populations of our cities continue to grow. Residents increasingly face congestion costs, high petrol bills and distance from family, friends and jobs. More green space disappears and housing everywhere becomes more expensive. Our children are less likely to be able to afford to live where they grew up, and older people will face few options to downsize within the neighbourhood where they built their lives. We urgently need a new approach. A new Grattan report, Getting the housing we want, seeks to provide it.
First, we need political leadership to break the deadlock in our cities. Overseas cities that have managed growth well - such as Vancouver, Seattle and Portland - did so by ensuring that residents had a real say in decision-making. People showed themselves to be more than capable of accepting trade-offs, making tough choices and working with developers and governments.
As well as deeper engagement, Getting the housing we want proposes two major reforms. The first is piloting neighbourhood development corporations to oversee substantial redevelopment of specific areas. The corporations would give residents an active role in shaping their neighbourhoods, in partnership with the housing industry and government. They would be independent bodies with real powers over planning and delivery.
The corporations should develop diverse housing that features good urban design and high environmental standards. They should offer developers certainty but also give residents more control over how their neighbourhoods change. Experience overseas and in Australia shows this can be done.
A new Commonwealth-State Liveability Fund would support the development corporations by providing funding for new parks, community facilities and local infrastructure in return for neighbourhoods accepting more households. Yet the corporations will not be right for most parts of the city. We also need to encourage high-quality smaller developments such as those built on one or two lots on a residential street. In many established areas, these developments make up the bulk of new housing - and some of the most contentious development for existing residents. Here too, we need a mechanism to balance the interests of developers and current and future residents.
This would be achieved through a Small Redevelopment Housing Code that would establish clear standards for new housing of up to two storeys. If these standards were met, planning approval would be given within 15 days. In return, the code would ensure that new buildings were better designed and respected the privacy of neighbours and the area's character. The code would focus on the things that neighbours worry about most: overlooking, overshadowing, the appearance of bulk, and privacy in their backyards.
Finally, the report proposes the creation of an association to enable small builders and developers to construct better housing more cheaply. Many small developers struggle to adopt new ideas or try new building technologies for non-detached housing. This can result in housing that is poorly designed, the worst of which is distressing to residents. An association that links developers, architects and university research could help spread innovation, making this housing cheaper and better designed.
Our cities will keep growing. If we do not make choices about the way they grow, they will become less sustainable and more polarised, and fewer Australians will get the housing they want. But if we make the right decisions, our cities can grow while retaining the qualities that make them great places in which to live.
Jane-Frances Kelly is cities program director at the Grattan Institute.
Source: Sydney Morning Herald
http://www.smh.com.au/opinion/balance-can-be-a-household-word-20111114-1nfi7.html
Buyers should forge steel price now: McKern
Players in the new home construction industry should consider acting swiftly to secure long-term pricing where they can, according to Michael McKern, Managing Director of Victoria’s premier supplier of brick and structural steel to home builders, McKern Steel.
Mr McKern said there have been increasing pressures on the domestic steel market in recent months, causing the price of steel to rise.
“We are currently seeing the big steel companies increasing the spot purchase price, and flagging the possibility of further rises to follow,” Mr McKern said.
“This naturally flows through the supply chain, with the result being the likelihood of higher prices for structural steel and brick steel products in the medium term,” he said.
Both BlueScope and OneSteel have recently conveyed the pressures they are facing domestically:
• “We are currently seeing increases in the domestic steel market driven by movements in the A$/US$ exchange rate and the continued historical high levels of input costs.”
Dean Mehmet, General Manager – BlueScope Distribution
• “In our Australian steel segments, continued weak domestic demand, higher raw material prices, under-utilisation in international steel markets, unseasonal wet weather and the impact on prices of a 28% run up in the Australian dollar over the year, have all led to a very disappointing and unacceptable result.”
OneSteel Operational Performance Report 2011
Mr McKern said by locking in prices, steel buyers can enjoy some peace of mind and protect themselves knowing that they have purchased at today’s prices with the likelihood of the cost of steel rising further.
AWU welcomes passage of Steel Transformation Plan
The Australian Workers' Union has announced that it welcomed the passage of the Steel Transformation Plan through the Senate, which will provide an AUD 300 million lifeline for the Australian steel industry.Mr Paul Howes national secretary of The Australian Workers' Union said that "The AWU has been fighting to support the steel industry in this country for generations, it's the backbone of Australian manufacturing. We fought tooth and nail to get the right support for our manufacturing sectors through the debate on carbon pricing, including a special, sectoral package for steel."
He added that "This is a plan backed by both BlueScope and One Steel, because they know this legislation is crucial to helping the industry navigate the economic uncertainty ahead. It's sensible, considered policy designed to save steel jobs, helping steelmakers through the transition to a price on carbon and supporting them as they invest and innovate."
Mr Howes said every that Coalition MP who voted against the Steel Transformation Plan should hang their head in shame. He added that "The Liberal National Coalition has lost all credibility on manufacturing. Mr Tony Abbott looked steelworkers in the eye and told them he’d back them, then he turned around in Parliament and voted against a package to save steel. On top of that, we've had Mr Barnaby Joyce frothing at the mouth every chance he gets, pushing a whole load of hot air about jobs in manufacturing and other sectors."
He added that "What Mr Barnaby skims over during his beetroot faced tirades is that he and his Coalition colleagues voted against AUD 300 million in funding to secure steel jobs. Our members are rightly outraged that at a time like this, when manufacturing is facing it’s worst crisis since the Great Depression, the Coalition would move to block support for steel.
That sort of recklessness might be good enough for the Opposition, but it’s not good enough for our members and it's definitely not good enough for the broader Australian steel industry."
Source: Steel Guru
http://www.steelguru.com/international_news/AWU_welcomes_passage_of_Steel_Transformation_Plan/235091.html
McKern Steel Foundation: Applications to close on December 15
The cut-off for the next round of applications to the McKern Steel Foundation is fast approaching.The establishment of the McKern Steel Foundation allows groups seeking funding or in kind support from McKern Steel to simply apply online to go into the next round of applications to be considered.
There are two rounds of funding each year, with announcements occurring in February and August. The respective application deadlines are December 15th and June 15th.
We believe in contributing to the community, and consider all range of organisations and projects. We particularly have an interest in projects that fulfil a social need in any given community. All reasonable applications will be given due consideration.
Apply online at www.mckern.net.au.
So you think you can chef 2011
Over 4 big weeks at Eaglehawk's weekly Free Friday Community Brekky, local teams will cook you brekky as you judge: Presentation, Quality, Imagination & Yumminess.The cook-offs will feature representatives from Bendigo Victory, Bendigo Bank, Bendigo Advertiser, FEO, Bendigo Weekly, YMCA, Community Health, Challenges Accepted, Tweed Sutherland, Jennings Conveyancing and Bendigo Police.
7.30am @ ‘Our Shed’, Sailors Gully Rd, Eaglehawk.
Qualifying rounds: Fri Nov 18, 25 & Dec 2.
Grand Final Cook Off: Friday December 9.
OneSteel earnings update
OneSteel announced today that its earnings for the first half of the 2012 financial year are expected to be adversely impacted by the recent severe fall in iron ore prices and the rapid run up in the Australian dollar.OneSteel intends to provide an update on trading conditions at its Annual General Meeting (AGM) on 21 November 2011, however, the company has revised down its earnings expectations for November and December due to the recent collapse in iron ore prices, which are now around 30% below their levels three weeks ago of approximately $170 per tonne (62% Fe), and the impact of the increase in the Australian dollar over the same period.
OneSteel now expects Net Profit After Tax for the first half will be in the range of $55 million to $75 million (excluding transaction costs and stamp duty in relation to the acquisition of WPG Resources’ iron ore assets of approximately $20 million).
Further information on the outlook for the company’s businesses over the remainder of this financial year will be provided at the AGM.
Source: OneSteel ASX Release
Builders and retailers happy with RBA interest rate cut
The Melbourne Cup Day interest rate cut is good news - but not good enough to fix the weak trading conditions in the building sector, says industry association Master Builders Australia.The Reserve Bank of Australia (RBA) today cut the cash rate by 0.25 percentage points to 4.5 per cent.
MBA chief executive Wilhelm Harnisch said his organisation's September quarter national survey revealed just how tough the business environment had become for an industry that had lost the cushioning effect of government stimulus programs.
"The building industry is clearly in the slow lane of the economy," he said.
"Sales and forward orders have fallen away dramatically in the past six to nine months as cautious clients, overseas events and difficulties accessing finance work against any upturn," Mr Harnisch said in a statement.
But he urged the RBA to do more.
"The immediate challenge ahead for the building sector is to restore confidence to drive a private sector recovery in both the housing and commercial building markets.
"The Reserve Bank needs to cut rates further to assist in driving a sustainable recovery in the building industry."
The Housing Industry Association (HIA), representing the residential building industry, said the cut "was the only appropriate action given current economic circumstances".
"Both consumers and business need a shot of confidence, given offshore and domestic economic circumstances," HIA acting chief economist Andrew Harvey said.
"Today, the RBA used the opportunity to administer that shot and it is exactly the right call."
The Australian National Retailers Association (ANRA) said the cut delivered a Christmas bonus to retailers.
"Retailers will be happier than a kid on Christmas morning, with the announcement the RBA has dropped the cash rate by 25-basis points this afternoon," ANRA chief executive Margy Osmond said.
"Retail in Australia needs this boost, particularly going into Christmas 2011, a vital holiday period for the sector.
"After a year where retail figures have hovered around a third of the usual growth rate, despite no movement on interest rates for the past 12 months, retailers have been crying out for some assistance from the central bank."
Mortgage and financial services group, Firstfolio Ltd, operator of national online mortgage broker eChoice, said the cut would be a litmus test for the new loan exit fee ban.
"Any time the RBA moves, we see a spike in inquiries from existing borrowers shopping around for the best mortgage rate.
"Some refinance with a new lender, but many don't after weighing up impediments such as exit fees and bank account portability," Firstfolio executive general manager for retail distribution Andrew Clouston said.
"This will be the first time exit fees are not a factor at a time of interest rate change.
"The industry will be monitoring closely for signs that borrowers are now more willing to switch to new lenders, or are in fact still 'sticky' to their existing lenders," he said.
The industry body for credit unions, mutual building societies, mutual banks and friendly societies, Abacus Australian Mutuals, said the cut would help consumers struggling with the rising cost of living.
Abacus chief executive Louise Petschler "advised consumers looking for even more respite from high interest rates on their home loans to look at Australia's customer-owned banking institutions for a better deal".
Source: Herald Sun
http://www.heraldsun.com.au/business/builders-and-retailers-happy-with-rba-interest-rate-cut/story-fn7j19iv-1226182753331
Posted October 2011
BlueScope workers to say their farewells
It is reported that farewells will be the order of the day as scores of workers walk out of the Port Kembla steelworks for the last time. For many long timers, it will be the end of three or four decades at the steelworks, with their careers brought to a close by BlueScope Steel’s restructure.BlueScope is halving steel production to 2.6 million tonnes per year as it gets out of the loss making export market, while restructuring the company. The moves leave almost 900 people without a job at Port Kembla, and many have chosen to take redundancy packages.
Some workers have already left but as this week ends, with the No 6 blast furnace and No 4 coke battery having been shut down, the departures will reach a peak.
Australian Workers' Union branch secretary Mr Andy Gillespie said that there would be mixed feelings.
He added that "Each department's doing their own farewells. There are some farewell parties happening off site all over the place. Some of the people have given their whole life working in the steel industry. There'll be some people who are happy to go, there'll be some who are looking at the past and wondering where it all went. I think it's the end of an era in terms of a lot of the older people."
About a third of those leaving are believed to be around retirement age. The redundancy package is 2 weeks' pay for each year served, plus a lump sum of 14 weeks' pay and for some, another payment of between USD 7500 and USD 12,500.
A detailed breakdown of how many jobs would go in each department was agreed on in the Industrial Relations Commission four weeks ago but those numbers are being revised. About 300 workers will go from steelmaking operations, plus an estimated 300 contractors and about 430 staff in non steelmaking jobs.
Mr Gillespie said that some plant workers had been asked to stay on for another month or two, some until February 2012, but most would leave in the coming days. He added that "All through Friday, Saturday, Sunday, people will be exiting."
The No 6 blast furnace has been emptied, cooled and shut down, with about 60 jobs being lost there. Some furnace operators have been moved to the active No 5 blast furnace. The No 4 coke battery has been closed, with the loss of about 30 jobs across the coke making operations. The Environment Protection Authority is investigating at least one explosion during its shutdown.
The No 3 basic oxygen steelmaking vessel will stop operating soon, perhaps within days. The No 1 slab casting facility, also marked for closure, is still in action, using up perishable materials
Source: Steel Guru
http://www.steelguru.com/international_news/Downsizing_deals_BlueScope_workers_to_say_their_farewells/232722.html
PM urges manufacturers to take mining jobs 
The Prime Minister claims the future of Australian manufacturing is in the mining industry, and has offered $1.2 million of grants to help companies form ties with mining projects – according to a report from The Australian.Julia Gillard was speaking at a Perth manufacturing facility run by Hofman Engineering, which designs and makes components for mining machinery.
"Other sections of manufacturing would do well to look at the track record of this place -- how it has stayed at the forefront of research and development, how it has met its customers' needs and how it has been investing in skills and training every step of the way," Gillard was quoted in The Australian report.
"These are the key ingredients that has made this business a success and this business is now drawing from the wealth of the resources industry.”
Since 1969 Hofmann Engineering has provided specialist engineering services to Australian industry.
The company has experienced significant growth over the past few years, first with the purchase of Victorian precision engineering company Metaltec in 2009, and then in 2010 with the acquisition of 5 hectares of land and workshops from Thales Australia in Bendigo.
Hofmann Engineering’s offerings for the mining industry include replacement parts for draglines, shovels, hydraulic excavators, mining trucks, and disc vacuum filters.
The company also supplies components for gearing, mills and kilns, wind turbines, sugar mills, oil and gas, and portable machine tools.
Gillard’s attendance at Hofmann Engineering yesterday came off the back of calls from unions and industry to help provide a solution to the manufacturing jobs crisis.
Over the past year alone, various high-profile manufacturers including BlueScope Steel culled thousands of manufacturing jobs as a result of pressures from the high Australian dollar, cheap imports, and the mining boom.
Gillard held a jobs forum in Canberra earlier this month to address the issue, announcing tougher regulations for large projects to list their local content suppliers.
Source: Australian Mining
http://www.miningaustralia.com.au/news/pm-urges-manufacturers-to-take-mining-jobs
Meggi's Ride hits the track for mental health
When Megan Anderson decided to stop being a victim of mental health, she took on a challenge almost as big as her condition.Life as a teenager can be tricky enough, but imagine if you fainted whenever you felt anxious or stressed.
That was exactly what was happening to Megan Anderson, and after years of living with the mystery condition she was finally diagnosed as suffering from psychogenic seizures.
"I was in denial for about two weeks. I kind of just wanted to be medicated, and it just go away. At the time it was hard knowing that I'm almost doing it to myself in a way," Megan says.
Rather than let the illness get the better of her, the 15-year-old decided to take on another challenge in the hopes of helping others.
By riding 500 laps of the Tom Flood velodrome, she hopes to shine a light on adolescent mental health.
"With something like my condition I had to face my fears and deal with different things instead of just finding the easy way out. Turning it into a positive was hard, but I've got there."
The McKern Steel Foundation contributed to the support of Meggi's Ride. The next round of funding applications close December 15. Apply at www.mckern.net.au
Source: ABC
Full story and video documentary at http://www.abc.net.au/local/videos/2011/10/17/3341228.htm
McKern steels the limelight
Eaglehawk family business McKern Steel has been crowned this year’s Business of the Year in the Bendigo Business Excellence Awards.
Powercor Australia sponsored the major award and regional asset manager Ian Gillingham presented it at a gala dinner at the All Seasons Quality Resort on Friday night.
McKern Steel is a regional Victorian business supplying many of the state’s highest-profile residential building firms.
The company has also set up a foundation providing funding to not-for-profit programs and has long been associated with sponsorship of community groups.
The company also took out the category of manufacturing and industrial.
The business excellence awards have been conducted and managed since 1994 by the Rotary Club of Bendigo Sandhurst.
The awards aim to encourage businesses and individuals within the City of Greater Bendigo to strive for excellence and to acknowledge businesses that achieve that standard.
In all categories, winners were:
Retail - UFS Pharmacies
Service Professional – Dungey Carter Ketterer Pty Ltd
Trade and other Services – Tony Blanchard, Master Farriers
Manufacturing and Industrial – McKern Steel
Local Outlet, Franchise or Buying Group – Subway Bendigo Marketplace
Small Business (1 to 10 employees) – Design Experts
Not-for-Profit/Communit y Service Organisation – City of Greater Bendigo customer service team
New Business (less than 3 years) – Punches in Bunches
Employee of the Year – Cristina Mazzarino
Trainee/Apprentice of the Year – Sean Watson
Environmental – Roger King’s Super IGA Eaglehawk
Business of the Year – McKern Steel
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/news/general/mckern-steels-the-limelight/2332224.aspx
Victoria dominates weak housing market
Victoria drove Australian housing construction last financial year on strong population growth but the industry has warned that building in the state is likely to slow.Looking at Australia as a whole, the country's biggest housing builders suffered a 13 per cent drop in new home starts in 2010/11 because of higher interest rates and a fall in consumer confidence.
Housing starts for the top 100 builders in Australia fell to 51,903 in 2010/11 compared to 59,509 in the previous year, according to the Housing Industry Association's Housing 100 survey.
Victoria recorded a total 59,116 housing starts in 2010/11 for all builders, with Simonds Group the state's biggest builder with 2,228 new starts.
HIA chief executive Graham Wolfe told the HIA-Westpac-Cordell Construction Outlook Breakfast in Sydney that residential construction in Victoria, driven up to now by the state's population growth, was not sustainable.
"Victoria has been building at around 58,000 starts a year, they have a long term average of about 47,000," Mr Wolfe said on Thursday.
"If they continue to build at that size and volume ... there will be an oversupply in Victoria so at some point in time they will ease back."
Victorian company Metricon Homes was Australia's biggest residential builder, building 3060 detached homes in Victoria, NSW and Queensland.
The nation's largest builder of multi-unit dwellings was Victorian-based Hickory Developments, which started 2,003 dwellings.
The Housing 100 is a survey of Australia's 100 most active home builders, which together account for 33 per cent of the market in the last financial year.
The top NSW builder was McDonald Jones Homes with 817 new dwelling starts and NSW recorded just over 30,135 starts.
Mr Wolfe said NSW would have to pick up the activity lost in Victoria and that would take a cut in interest rates and a reduction in NSW government taxes, which added between $55,000 and $95,000 to the cost of a block of land.
He said NSW could not continue at around 30,000 starts a year and needed to get back to its historical average around 42,000.
In mining boom-driven WA new housing starts fell by 18 per cent to 20,617 in 2010/11.
Top-ranked WA builder BGC Australia listed 2,435 starts against 4,392 the previous year.
Queensland's biggest home builder was Bloomer Constructions, recording 920 of a total 26,443 starts.
South Australia's Hickinbotham Group dominated activity in that state with 1,058 starts out of 10,372.
The HIA also said in a statement that activity was poor in the current financial year.
"There is a not inconsiderable body of evidence pointing to an accelerated weakness in new housing from June this year, which doesn't augur well for the 2011/12 Housing 100," it said.
Source: Australian Associated Press
http://news.smh.com.au/breaking-news-business/victoria-dominates-weak-housing-market-20111013-1lm9w.html
McKern Steel in running for Business Excellence award
The Rotary Club of Bendigo Sandhurst has announced this year's Finalists in the 2011 Powercor Australia Bendigo Business Excellence Awards.The cream of Bendigo's business community will gather at the All Seasons Quality Resort this Friday evening October 21, to witness the announcement of this year's winners.
McKern Steel is proud to have reached the final three in the Manufacturing & Industrial award along with GE Silos and Reuben Beazley Builders.
Pilbara iron ore prices 'will succumb'
The price of Australia's biggest export earner - Pilbara iron ore - has begun to crack under the pressure of the global economic slowdown.But unlike the price collapse that accompanied the September 2008 start to the global financial crisis, spot prices for the steel-making raw material remain at historically high levels of more than $US160 a tonne.
The second-ranked Pilbara producer, BHP Billiton, has also confirmed that despite suggestions to the contrary, no shipments of iron ore have been turned back by China, the world's biggest steel producer.
BHP's chief executive, ferrous metals and coal, Marcus Randolph, told the World Steel Association in Paris on Thursday that the company had not had any shipment cancelled or delivery time and prices renegotiated.
He said BHP was producing as fast as it could, echoing comments by the No. 1 Pilbara producer, Rio Tinto, earlier in the week. But BHP agrees that iron ore prices will succumb to the wall of new supply due in coming years.
''If all of the projects come online - and there are $US430 billion of projects - we will exceed the requirements of the steel industry in our forecast,'' Mr Randolph said.
Iron ore prices have fallen by about 9 per cent in the past month in response to the Western world's economic woes.
The price of coking coal, Australia's second-biggest export earner and another steel-making raw material, has also weakened in recent weeks to $US256 a tonne from the $US300 a tonne-plus prices seen after the Queensland floods earlier this year.
But unlike iron ore, supply is forecast to remain ''tight'', with few new sources of supply due to come on stream in the near future.
''Watch coking coal markets because there are not enough projects to actually supply what the market is going to require in the next decade,'' Mr Randolph said.
''We have relatively more bearish forecasts for iron ore's future than we have for coking coal, despite the fact that the last decade has been a wonderful decade to be an iron ore producer.''
BHP is promoting the creation of a new system of pricing to be called ''Global Ore'', which would give producers and customers ''a more transparent and 'live' price than is now available''.
Source: Sydney Morning Herald
http://www.smh.com.au/business/pilbara-iron-ore-prices-will-succumb-20111014-1lp7p.html
Tata Steel warns UK on ‘over the top’ green policy
The head of the European division of Tata Steel of India has warned that a planned £1.2bn investment programme by his company in Britain could be put at risk by the UK government’s “over the top” climate change policies directed at heavy industry.Karl-Ulrich Köhler told the FT that efforts by the government to load extra costs on to industry in the cause of satisfying the political goal of making the UK the greenest country in Europe was a “race for leadership” that he had difficulty understanding.
Although coalition ministers have signalled in recent weeks that they may rein back on plans to make the administration “the greenest government ever”, Mr Köhler regards this as a battle industrial groups have still not won.
The European division of Tata Steel, formerly Corus, is one of the UK’s largest manufacturers, employing 20,000 people mainly in steelmaking centres in south Wales and Scunthorpe, Lincolnshire.
The steel industry is one of the biggest producers of carbon dioxide implicated in climate change.
Mr Köhler is a German steel executive who took the helm of Tata Steel’s Europe division last year. The company’s European operations also include a large steel plant in the Dutch port of IJmuiden.
In an interview at a steelmaking conference in Paris, Mr Köhler said the UK government’s plans to increase the financial penalties for companies whose operations created large quantities of CO2 could rebound. This was because such policies could provide incentives for companies such as Tata to shift capital projects to countries where environmental standards were less onerous.
Mr Köhler is planning a £1.2bn programme in the company’s UK steel works in the next five years to improve efficiencies and increase quality. “We [Tata] are keen to invest in the UKand we think we should be getting more support [from ministers],” he said.
The investment programme – running at about £250m annually – is about 30 per cent higher than Tata Steel has invested in the UK in recent years.
Mr Köhler said the European Union regime to force companies to curb CO2 emissions was probably the toughest in the world. “Why the UK government wants to go further and be the leader in Europe in this field is difficult for me to understand. It’s a race for leadership that is simply over the top,” he said.
David Cameron, the prime minister, said last year that he wanted to force through unprecedented new rules aimed at protecting the environment to make the UK a leader in the field.
In an indication of a potential about-turn, George Osborne, the chancellor, told the Conservative party conference this month that the government was “not going to save the planet by putting our country out of business”.
But Chris Huhne, energy secretary, who is a strong supporter of tough environmental policies, is said to be unwilling to change his position easily.
Mr Köhler said he was not sure ministers understood the concept of “carbon leakage” – that if steel was not made in the UK it was likely to be made in countries such as India and China: “It’s surely better for the planet as a whole if the steel is made in the UK where emission standards are fairly strict rather than in other countries where making the same amount of this metal causes more carbon dioxide to enter the atmosphere.”
He said the government should be trying to encourage industries to expand in the UK. “The share of manufacturing in UK gross domestic product is, at about 11 per cent, far too low. Britain should be trying to make it higher as a way of giving the country a better platform for long-term economic growth.”
Source: Financial Times
http://www.ft.com/cms/s/0/9368e3e4-f4b9-11e0-a286-00144feab49a.html#axzz1az83Lbnx
Grant opens the gate for Neale St Pre-Schoolers
The Neale St North Pre-school will install a new gate, creating a safer environment for our precious young learners thanks to a grant from the McKern Steel Foundation.Part of the Loddon Mallee Pre-school Association, Neale St North is a not for profit place of learning for 94 of Bendigo’s growing pre-schooler population and relies heavily on the support of volunteers, donations and grants to give its children exposure to all the opportunities they deserve.
Karizma Mullane explains:
“Our management committee is made up of volunteers and the families and friends of our students provide a lot of support at working bees and through kinder duty. Our wonderful teachers provide a safe, secure and high quality learning environment for the children in the Pre-School’s care,” she says.
“Working together, parents, teachers, students and volunteers create a really vibrant little community and we’re so happy to see the children acquiring new skills and confidence as they prepare to start school.”
“The grant from the McKern Steel Foundation to replace the gate will mean better safety and security but it also means that the wider community recognises the importance of our early learners. We’re enormously grateful to the foundation for their support,” Mrs Mullane says.
The McKern Steel Foundation’s Michael McKern says that sometimes all it takes is a little bit of extra help for Pre-Schools to improve safety and functionality at the school gate.
“Parents and carers juggling artwork, backpacks, drink bottles, children and car keys? We’ve been there. We understand what it’s like to want the very best for your child and so our foundation was pleased to make a provision to upgrade the Neale St North gate just to make the transition that little bit easier,” he says.
The next round of funding applications close December 15. Apply at www.mckern.net.au
Miners reject foreign content claims, saying they support local industry 
Miners say they have been unfairly singled out in a new buy-Australian push, saying the sector does more than the federal government to support local industry. Julia Gillard has announced new buy-Australian measures for firms seeking government grants and tariff exemptions, after union complaints that big miners were bypassing local suppliers.
But the Minerals Council of Australia said the changes were based on a “false premise”.
The council's deputy chief executive Brendan Pearson said the industry had been unfairly targeted with false claims that just 10 per cent of steel used in mining projects was Australian.
“The data simply does not support the claim the mining industry is not using substantial local content,” he said.
“The government, unions, and sector need to think very carefully before we offer simplistic solutions.”
Mr Pearson said the Minerals Council would look at the detail of the proposal but maintained Australian Steel Institute data showed local content in mining projects was about 88 per cent.
“It's strange to see a single sector singled out, particularly when the facts reveal its contribution through purchasing from local suppliers is well above the government itself,” he said.
Union leader Paul Howes recently cited Steel Institute data showing new resources projects were sourcing 10 to 12 per cent of their steel domestically, amid layoffs by Australian steel manufacturers.
But Mr Pearson said institute figures showed 53.3 per cent of iron and steel used by the mining industry across all projects was locally supplied in 2009.
Institute figures also showed the mining industries' total demand for goods and services in 2009 had been $85.7 billion, with 88 per cent of demand met by local industry.
In contrast, $16.5 billion of a total $23.7 billion or about 69 per cent of government contracts in 2007-08 had been spent on Australian-based goods and services.
The government announced yesterday it would force all firms seeking tariff exemptions to provide additional evidence, to be posted on a new government website, that Australian firms received an equal chance at securing project contracts.
The government will also require all companies receiving $20 million or more of government money to complete Australian Industry Participation Plans, which will also be posted on the internet.
Mr Pearson said the policies were not evidence-based.
Source: The Australian
http://www.theaustralian.com.au/national-affairs/miners-reject-foreign-buying-claims-saying-they-support-local-industry/story-fn59niix-1226161137407
BlueScope Steel's troubles blamed on giving 'alarming' control to unions
A major steel producer now cutting 1000 jobs should be blaming itself for striking a highly unusual, archaic and costly workplace agreement that gave far too much control to key unions, according to several independent industrial relations experts.BlueScope Steel has blamed the soaring cost of raw materials and the strength of the Australian dollar, which was about $US1.05 at the time, for its decision to shed more than 1000 jobs with a significant restructure of its steelmaking operations at Port Kembla, south of Sydney.
The company's actions have triggered an industrywide debate about the external challenges facing Australian manufacturers.
The Australian asked IR expert Grace Collier, a former union official, to analyse BlueScope's 100-page legally binding union agreement, the Port Kembla Steelworks Employees Award, which covers most staff being made redundant. Ms Collier, who provides industrial relations advice to companies in financial stress, described the agreement -- struck by BlueScope Steel with four unions, including the Australian Workers Union and the Electrical Trades Union -- as "alarming, extraordinary and without precedent" in her experience.
She said "particularly appalling" features in the agreement gave the unions the right to strike, and gave union officials the power to decide if customer orders should be filled, because of an obligation to fax orders to union offices.
After receiving her scathing review, which found BlueScope Steel's agreement had legalised "a sheltered workshop effectively controlled by the unions, not the company", The Australian asked Judith Sloan, of Melbourne University, as well as IR trouble-shooters David Bates and Theresa Moltoni, to conduct further analysis.
Their findings, which concur with Ms Collier's review, raise serious questions over whether BlueScope and other Australian companies are laying off more staff than necessary because they have the flexibility to trim workplace costs in a downturn.
While external factors such as a high dollar are cited by employers and unions for ongoing layoffs, IR experts are instead pointing to extraordinarily prohibitive workplace agreements, such as that at BlueScope.
Australian Industry Group chief executive Heather Ridout and AWU national secretary Paul Howes have strongly rejected Ms Collier's findings as uninformed and inaccurate, with Mr Howes describing the BlueScope award as "one of the most flexible in the entire steel industry globally".
BlueScope pointed to the "amazing flexibility and productivity" the company had achieved from its workforce in recent years.
But Professor Sloan told The Australian yesterday that BlueScope workers had been "extremely generously remunerated and the other conditions are virtually unmatched in other settings". "The ability for the unions to affect operations, including knowing about orders and names of customers, is also very unusual and destructive," she said.
Source: The Autralian
View full article
Global steel mini mills call for more usage of ferrous scrap 
Nearly universal in scope, the global scrap supply arises from a vast network of collectors, dismantlers and processors both large and small in every country in practically every state, province, district and county on the planet. Millions of tonnes are shipped around the world each year. The ultra modern mini mill heralded for its operational agility in that it produces steel without resorting to conventional raw materials such as iron ore, coke and limestone could not operate without scrap.It should come as no surprise that the global proliferation of steel mini mills has made ferrous scrap a lucrative commodity. For decades prices for top grades rarely went above USD 130 per short ton in the US and international markets. At times prices fell as low as the USD 60 per tonne range. In late 2001 average prices were USD 80 or less.
As with many commodity prices over the past decade, however, ferrous scrap prices began to climb well above historical norms. By 2004 top scrap grades hit a previously unheard of level of USD 350. They eventually reached more than USD 600. Steel mills everywhere were producing at full capacity. Prices plummeted in 2008-09, of course, but they never fell to their historic levels. Today prices are still above USD 400 per tonne, even with US steel mills operating at little more than 75% of capacity. Analysts have periodically issued forecasts to the effect that scrap prices can be expected to rise for an extended period as demand continues to rise while supply remains more or less static.
When talking of scrap grades, however, there can be huge variations in content and quality between one scrap pile and another between one supplier and another. Think about the entire galaxy of iron and steel products out there. That’s how many different types of ferrous scrap there are each with its own unique (or peculiar) qualities. Some require special processing before they can be used. Others have contaminants that cause difficulties during processing or in the steel mill, or both. Some grades can be used to make certain types of steel but not others. Some grades need to be segregated from other grades. Occasionally ferrous scrap has been found to be radioactive and cannot be used at all.
Because it is so difficult to ensure exactly what is in any given railcar or shipload of say, No 1 shred (shredded steel) or an 80-20 mix of No 1 and No 2 heavy melting scrap, the commodity has generally not lent itself to being an exchange traded product. After all, it took the London Metal Exchange 130 years to get around to listing a steel contract, and finished steel is a much more uniform and widely sold product that steel scrap. A few exchanges, including at least two in Asia, have nevertheless listed ferrous scrap contracts in recent years. The most recent has been the Nymex division of the Chicago based CME, which in mid April began listing a swaps contract for HMS 80/20 ferrous scrap (CFR Turkey). Whether any of these contracts have or will attract much liquidity remains to be seen.
Source: steelprices-china.com
http://steelprices-china.com/news/index/2011/10/04/MjkxOTU%3D/Global_steel_mini_mills_called_for_more_usage_of_ferrous_scrap.html
Bibs and Balls at Eaglehawk North
Eaglehawk North Primary School is celebrating an upgrade to its Netball facilities after a recent grant from the McKern Steel Foundation.A long-standing sporting favourite for girls across Australia, Netball is loved for its skill, fast-paced play, team spirit and fierce competition.
Eaglehawk North’s coach, Janet Bailey, says the game also raises confidence, creates connections and allows girls the opportunity to excel.
“It can seem a very long road from learning the basic skills to mastering the court, but thanks to the McKern Steel Foundation, we’ll be able to upgrade our facilities and demonstrate to our teams that they can dream big, train hard and one day... represent their country,” she says.
“Look at our Australian Team! The Diamonds came from behind to win the 2011 World Netball Championships with a goal in the last second of extra time to beat New Zealand 58-57! All that effort and practise and now, they’re on top of the world. Who’s to say that a future world champion isn’t at Eaglehawk North right now?” Ms Bailey says.
Michael McKern agrees.
“The McKern Steel Foundation is all about creating opportunity and supporting the people in our community that make such a huge contribution to our social and physical health. Netball is a fantastic, inclusive sport and we were delighted to be able to make a grant to Eaglehawk North Primary School for the purchase of new equipment,” he said.
“And you do never know where our next champions might come from. A future Diamond at Eaglehawk North? Why not?” Mr McKern says.
Details of BlueScope's redundancy agreement
The first detailed breakdown of job losses at BlueScope Steel has finally been revealed, ending weeks of speculation about where the axe will fall at the Port Kembla steelworks.The NSW Industrial Relations Commission yesterday released the results of negotiations between union leaders and BlueScope over the company's plans to shed 800 Port Kembla jobs.
The 27-page agreement, which identifies 395 surplus wage employee positions across the steelworks, outlines how many and which jobs will be slashed in most departments.
It also confirms a one-off payment of up to $12,500 will be included in the final pay-outs to long-serving employees.
Union officials said the deal was a reasonable outcome after difficult negotiations.
Sixty-four jobs have been marked to go at the No 6 blast furnace, which will shut down as BlueScope exits the export market.
Slabmaking has also been hit hard, with more than 150 surplus positions identified.
The remainder of the losses are spread across departments, while the final number in refractories and logistics will be the subject of further negotiations.
The majority of the redundant workers will leave the steelworks before October 31 and the agreement will also be subject to a six-month trial period, with a review in April 2012.
Steelworkers will vote on the outcome of the negotiations at a mass meeting next Thursday at WIN Entertainment Centre.
Under the final arrangement, redundant workers will receive 14 weeks' pay plus 2? weeks' pay for each year of service and a one-off payment based on their tenure.
A payment of between $7500 and $12,500 will go to workers who have been at the steelworks for between 15 and 35 years, as long as their total package does not exceed two years' pay.
Union leaders are confident enough workers will apply for voluntary redundancy to meet the job losses, and even raised the possibility some workers could miss out.
"We didn't agree with their first lot of figures for the job cuts but obviously through the negotiations ... we've come to a fairly honest outcome," Electrical Trades Union's John Thornton said.
Unions expect the final number of job losses to be closer to 720 than the original 800.
Staff jobs are expected to make up the losses not identified in yesterday's agreement.
Yesterday, a BlueScope spokeswoman said the company would now move to the "implementation stage with the objective to complete this phase by the end of October".
Source: Sydney Morning Herald
http://www.illawarramercury.com.au/news/local/news/general/details-of-bluescopes-redundancy-agreement/2309716.aspx
Victorian housing prices fall, but sales rise 
VICTORIA'S housing prices have fallen more than any other state, while sales remained stronger than in most other parts of the nation, according to two separate surveys. The Housing Industry Association said home sales nationally had trended upward by 1.1 per cent in August, after drops of 8 per cent in July and 8.7 per cent in June.
Sales were strongest in Victoria with a 3 per cent rise, which a separate National Australia Bank survey showed had also suffered the biggest housing price drops of any state in the nation.
The NAB survey confirmed that the Victorian real estate market is in the doldrums, with Victorian prices dropping 3.8 per cent in the September quarter - more than anywhere else in Australia.
And it also predicted Victoria would lose more than any other housing market in the coming year, with prices tipped to plunge a further 3.2 per cent.
The HIA's Harley Dale said depressed prices in the housing market meant it was a good time to buy for those who could afford it, with the HIA survey showing sales in Victoria were better in August than in other states.
But he warned that fewer people were inclined to take what they thought was a risk as the economic news grew more uncertain.
The HIA has added to calls for an interest rate cut by urging a drop of half a percentage point in the wake of the latest figures.
The HIA first called for a cut to the 4.75 per cent cash rate early last month and has been joined by prominent economists and the Federal Opposition.
"The overall economic situation has declined since early August, increasing the need to bolster confidence with a 50 basis point cut, back to 4.25 per cent,'' Dr Dale said.
"That would show people the central bank is willing to act to boost confidence in the Australian economy with businesses and households.''
Victoria, with a 3 per cent August bounce, was in an overall better position than NSW or Queensland's depressed markets but Dr Dale said the sluggish economy needed leadership from the Reserve Bank.
But Victoria's August market was 5 per cent lower than August 2010 and the August quarter this year was down 17 per cent on last year's.
"One clear message is that without Victoria, Australia's already very weak new housing sector would be experiencing recessionary conditions as was the case in the early days of the GFC,'' the HIA report said.
Dr Dale said that the continued softness in the housing market meant that it was a good time to buy, for those who felt they could afford it.
Detached home sales for the month were up by 1.5 per cent but units declined 2.2 per cent.
Dr Dale said the general nervousness among consumers in the economy was feeding into the housing market, though the decline had been more modest in Victoria compared to the other eastern states.
While detached housing sales had increased in Victoria, they had dropped 5.8 per cent in NSW.
Source: Herald Sun
http://www.heraldsun.com.au/business/australian-new-home-sales-in-the-doldrums/story-fn7j19iv-1226148994075
China steel output, iron ore pricing in focus at summit
SINGAPORE: Whether China can sustain its rapid pace of steel production
while developed economies are on shaky ground and how tight supplies
will continue to buoy iron ore prices are questions on the agenda for
China’s biggest industry gathering this week. Chinese steel mills are also expected to use the occasion to push for a more favourable iron ore pricing scheme as elevated spot prices cut into profits, ahead of a plan by industry group CISA to launch China’s version of a reference index next month to gain more pricing power.
Fuelled by a construction boom, China, the world’s biggest steel producer and consumer, has been upping output this year, hitting a record 1.998 million tonnes per day in June. Since late February, daily production has averaged above 1.9 million tonnes versus 1.7 million in 2010.
But with China’s construction activity showing signs of slowing, partly due to Beijing’s tighter credit policy which has curbed its manufacturing sector, steel producers particularly of long products such as rebar might need to curb output.
“It’s a tough call but it’s definitely safer to be bearish rather than bullish near term,” said Macquarie commodity analyst Graeme Train.
“Steel prices need to come off about 10 percent to stop rebar producers from producing and they need to stop producing because their inventories are starting to build.”
Shanghai rebar futures have fallen around 8 percent this month, reflecting worries about slowing Chinese steel demand and a struggling global economy.
The decline in steel prices has thinned appetite for iron ore, the key steelmaking raw material, dragging down spot prices around 4 percent this month.
But tight global supplies have helped cushion falls in the price of iron ore, now standing above $170 a tonne, or just 10 percent off the record high of $193 set in mid-February and still triple its price in late 2008.
Comparatively, copper at $7,388 a tonne now, has lost 27 percent since touching a record $10,190 in February.
Global miners Vale, Rio Tinto and BHP Billiton which together control more than two thirds of the global seaborne iron ore market have been expanding capacities to meet growing demand particularly from top importer China.
Rio Tinto says the world needs at least 100 million tonnes of additional iron ore supply annually for the next eight years to meet steel demand growth projections.
Lack of supply from India, the world’s No 3 iron ore exporter after Australia and Brazil, has helped keep prices high as the country feeds the expansion of its own steel industry.
Indian exports, which fell for the first time in a decade last year, dropped 22 percent in the fiscal four months to July and analysts say shipments could halve over the next five years.
Source: The News International
http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=69713&Cat=3
McKern Steel Foundation supports recovery from domestic violence
The McKern Steel Foundation has made a donation to the Dorothy Rose Fund, the second such grant it has made in support of the recovery of women and children following domestic violence.The fund’s Carmel O'Brien says the McKern Steel Foundation’s gift will help women and children recover their self-esteem, mental and physical health and confidence after being forced into financial difficulty by violence at home.
“Many women and children are setting up a house in a new area and suffer the loss of their financial security and social networks. On top of the trauma of domestic violence, this can be a very difficult time – especially when they cannot afford services or goods that most families take for granted,” she says.
“With this second grant from the McKern Steel Foundation, we can again celebrate the fact that in the community there are people and organisations who care about women and children affected by domestic violence and that brings hope to these families. The Dorothy Rose Fund not only provides timely practical support, it gives women and children a sense of relief and optimism towards their future,” Ms O’Brien says.
Past recipients of assistance from the fund have reported feeling much more hopeful about their future because of the practical support provided by Doncare and increased public awareness of the issues facing survivors of domestic violence.
The McKern Steel Foundation’s Michael McKern says domestic violence affects the whole community.
“Our foundation is proud to stand up and support women and children who have suffered from domestic violence. Their courage and bravery is inspiring and we felt the Dorothy Rose Fund was a very worthy recipient of another grant because of the hope and joy it brings into the lives of affected families. A little help from us now might mean great things later; you never know what amazing things will happen,” he says.
The Dorothy Rose Fund accepts both cash and donations in-kind from generous businesses and individuals.
The next round of funding closes on December 15th. Apply online.
Posted September 2011
Steel industry demands more local jobs
A rare alliance between employers and unions will fight for more Australian manufactured steel to be used in the mining boom.Industry groups such as the Australian Steel Institute and the Australian Stainless Steel Development Association have joined forces with the Australian Manufacturing Workers Union (AMWU) to lobby the Queensland government to boost local jobs in the steel fabrication sector.
In what's been described as an unprecedented event, they are pushing for new legislation that would force major resource projects to have a percentage of Australian fabricated steel.
They are also calling for tender processes to be longer, in English, and at a scale that provides a level playing field for local suppliers.
And they want miners to be forced to provide regular reports on how they involve local engineering, detailing and fabrication businesses - and for those reports to be made public.
AMWU state secretary Andrew Dettmer said there had been dramatic job losses in Queensland's steel-making sector, with Brisbane's Gay Constructions downsizing from 120 staff to 65 over the past two-and-a-half years and Beenleigh Steel Fabrications dropping 100 staff in the past 12 months.
"That pattern is repeated across the entirety of the steel fabrication industry and steel detailing industry in Queensland," he told reporters in Brisbane on Thursday.
"There is not enough local content being included into these resource projects, there is not full, fair and reasonable opportunity for those companies to get a guernsey and what we're saying is that there needs to be a change in policy."
He said companies, such as Gay Constructions, have been given only two weeks to tender for multi-million dollar projects or have been told they have to tender in foreign languages or standards that are foreign to Australia.
"They are the things that make local content almost impossible to achieve in Australia and that is the thing that we need to see fixed," he said.
ASI state manager John Gardner said only 10 per cent of Australian manufactured steel was used in Australian projects.
"We think that is very small and in the middle of a mining boom you should not have companies downsizing," he told reporters in Brisbane.
"Fabricators right across the board are suffering because of offshore structural steel work."
Gay Constructions general manager Brett Mathieson said morale was low and workers were unsure if they would still have a job in the weeks ahead.
He argues if Australia is to keep its manufacturing industry, intervention is needed.
"There is certainly an argument that Australian-made costs more, but if you look at the Australian standards that need to be met ... if you look at the qualifications that people have in our workshops against offshore, those things need to be taken into consideration," he said.
Source: Australian Associated Press
http://news.ninemsn.com.au/national/8350622/steel-industry-demands-more-local-jobs
Brickworks calls for urgent cut in rates
The nation's largest brickmaker, Brickworks, has called for immediate interest rate cuts to boost consumer confidence and arrest a ''severe housing downturn''.The company's chief executive, Lindsay Partridge, said rates were at least half a percentage point too high, and the need to lower them was ''urgent'' and ''obvious to everybody'' in the industry. ''Until we see a reduction in interest rates … then we're unlikely to see an upturn [in housing markets].''
Earnings before interest and tax from the company's building products division slumped 21.3 per cent over the year to $42 million.
Brickworks was forced to lay off 74 back office staff this month, including in sales, administration and management.
"It is extremely distressing to lose so many valued and long serving employees due to the failure of the federal government to act in response to the dire condition of the housing industry,'' Mr Partridge said.
This follows the 239 jobs lost last year, largely through a restructuring of the group's Austral brick plants.
Mr Partridge said more brick plants could be closed or moth-balled if housing activity continued to weaken.
The residential housing industry has been hit by a lack of consumer confidence and record savings rates, with potential buyers putting off decisions due to persistent uncertainty in the global economy.
Rival building materials companies CSR and Alesco issued profit warnings last month.
Brickworks is among the more cautious of its building product peers, estimating Australian housing starts to fall a further 10 per cent this year to 141,000.
Brickworks reported an 8.5 per cent drop in full-year profit before significant items, from $110.2 million to $100.8 million.
Net profit increased 3 per cent to $142.6 million, but this included a $62 million adjustment relating to its 43 per cent stake in investment house Washington H.Soul Pattinson, which has a 44.5 per cent cross-holding in Brickworks.
Washington H. reported a net profit of $363.9 million, the majority of which came from its 59.7 per cent stake in New Hope Coal.
Brickworks announced a fully-franked final dividend of 27¢, unchanged from the previous year.
Source: Sydney Morning Herald
http://www.smh.com.au/business/brickworks-calls-for-urgent-cut-in-rates-20110922-1kn85.html#ixzz1Z0CS5w2p
Steel industry opposes height restrictions in Christchurch
New Zealand's structural steel industry has joined others in expressing concerns about building height restrictions proposed in inner city Christchurch. In its submission to the draft Central City Plan, Steel Construction New Zealand (SCNZ) notes that of the 181 tragic fatalities caused by the February earthquake, none occurred in buildings over seven storeys high.Alistair Fussell, a structural engineer and Manager of industry group SCNZ, says that despite the good performance of modern steel-framed buildings in the earthquakes, such as the now-reoccupied 12-storey HSBC Tower, there appears to have been a loss of confidence in multi-level construction.
"While concerns about building heights are understandable given the terrible loss of life and devastation caused to the city, restricting building heights certainly won't encourage building owners to invest and rebuild in Christchurch.
"Christchurch should allow higher buildings, but build them using appropriate materials and technology. New low-damage, seismic-resisting steel systems developed here in New Zealand will make multi-level buildings economically feasible for Christchurch developers and building owners - and safe for their tenants."
Mr Fussell also says the challenging soil conditions in the CBD mean that expensive foundations will be required to help minimise building damage during a severe earthquake. These foundation costs will be relatively more expensive when spread over a limited number of floors.
The other key issue SCNZ highlighted in its response to the draft Plan is the use of local suppliers and content in the rebuild.
"Local companies should be given a fair opportunity to compete for rebuild work through appropriate procurement practices that consider whole-of-life costing. New Zealand's vibrant structural steel industry is well-placed to provide high-quality materials which meet stringent Building Code requirements."
Mr Fussell says decision-makers should be doing everything they can to encourage developers and owners to stay and invest in Christchurch, and embracing the latest low-damage seismic-resisting technology will help.
Mr Fussell says his industry is in the early stages of developing a rating system for steel-framed buildings which will allow the seismic performance of different earthquake load-resisting systems to be assessed and compared. The rating system will allow developers and owners to make informed building decisions, leading to lower insurance premiums and higher rental incomes - not to mention a smaller carbon footprint as a result of increased longevity - for their buildings.
Source: guide2.co.nz
http://www.guide2.co.nz/money/news/property/steel-industry-opposes-building-height-restrictions-in-christchurch/11/22428
Everyone is hurting, says Eaglehawk coach
CAPPING his first season as a senior coach with a grand final victory was not to be for Eaglehawk’s Luke Monaghan in Saturday’s showdown with Golden Square for the BFNL premiership cup.He had enjoyed the euphoria of a grand final victory as the Hawks’ under-18s coach in 2007, but this time it was the agony of a 22-goal defeat.
“Everyone is hurting,” Mongahan said in his post-match address to the players and Borough fans.
“This day and this time will live with us for the rest of our lives. An opportunity to play in a grand final does not happen every year, so we have to work even harder to gain another chance next season and to win.”
Monaghan said the Hawks achieved the early goal of starting well against what would be a red-hot Golden Square in Saturday’s clash.
“Our first 10 minutes was excellent,” he said of an 18-2 lead as the Hawks capitalised on first use of the breeze to the Barnard Street end.
“But we didn’t make enough of the opportunites in the first half of the first quarter.
“We could have been six goals up and really put some pressure on Square, but it was not to be.”
The Dogs’ relentless run and pressure was a big factor in the victory.
“We knew going into this match we would have to work really hard when we didn’t have possession.
“Concentration dropped at times and it really hurt us.”
Mongaghan said the match showed how important it was to not lapse in terms of run and pressure.
“Against a team as strong as Square, a lapse for just a couple of minutes can be really costly.”
Monaghan spoke about the passion of the Hawks’ players and supporters.
“They are still here,” he said of the many fans who were in the rooms at match end. It’s important we stick together.”
Although bitterly disappointed with the result, Monaghan said he was “extremely proud” of the Hawks’ effort to reach that one day in September.
“We did not have a great start to the season (losses in rounds one and two to Maryborough and South Bendigo), but then fought back for some great wins as the season went on.”
There were many changes to the playing list and a new style of play in 2011.
Monaghan said it was crucial the Hawks learn from the defeat and use it as motivation in the 2012 campaign.
“There will be a two or three week break and then it’s time to start planning for next season.
“The committee led by Ray McLean, Archie and Debbie Lenten has done a power of work for the club to be in a great position off-field.
“As a coaching group we will look at recruiting options and being back as a premiership contender next year.”
Sorce: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/sport/football-australian-rules/everyone-is-hurting-says-eaglehawk-coach/2303048.aspx?storypage=0
Grand Final Breakfast
The 2011 AFL Grand Final day will mark the inaugural Bendigo Community Telco Grand Final Breakfast, on Saturday October 1st from 8am-10.30am at the Platinum Room, 366 High Street, Golden Square. Tickets are $55 per individual or table of 12 at $50 per person, hot breakfast included and lots of fun, prizes and giveaways. There is limited seating available so book your tickets soon.Anthony Stevens, 1996 and 1999 premier, All Australian, club captain and Darren Crocker, 1996 premier and current North Melbourne assistant coach will be the special guest speakers for the breakfast.
This event is being arranged by Emma McKern as part of her entry in Horizon House’s Rising Light competition. This asks young people to compete to raise the most funds for the charity. Emma says “I hope to get as many people involved with this breakfast as possible as it’s for a great cause, and all proceeds go to the Horizon House, helping young homeless people have the lives they deserve.”
Wayne Williams, General Manager Operations at Bendigo Community Telco says “Bendigo Community Telco is sponsoring the event because we feel it’s an important charity and people around the Bendigo area should be doing all that we can to help the Horizon House project.”
Robert Cook, Chairman of Horizon House is pleased with the event saying “This breakfast will be great fun for everyone, while also helping disadvantaged and homeless youths. I hope to have an excellent turnout, the more tickets sold, the more proceeds for the charity. This is a wonderful opportunity for Bendigo.”
For more information and ticket sales contact Emma McKern on 0403 138 503 or emma@mckern.net.au
Full details here.
Deputy Opposition Leader warns 'steel socialism' could cripple mines industry
LIBERAL deputy leader Julie Bishop has reassured miners that a Coalition government would not force them to buy Australian steel after Tony Abbott last week left the door open to protectionism.
Warning of a "socialist mindset" creeping into the national debate, Ms Bishop told The Australian yesterday that union attempts to mandate Australian content in mine developments could cripple the mining sector.
Her attempt to underline the Coalition's free-trade credentials was amplified last night when Liberal backbencher Jamie Briggs delivered a scathing rejection of taxpayer-funded assistance for uncompetitive industries.
Speaking in Adelaide, Mr Briggs said governments could no longer afford to be "throwing good money after bad" underwriting industries and should instead help them adapt while promoting "economic freedom" that would increase competition.
A fortnight ago, steelmaker BlueScope announced 1400 job losses, sparking union and employer warnings of a crisis and calls for government measures such as requirements for mining companies to use more Australian products when building mines.
While Julia Gillard has stoutly rejected protectionism, last week the Opposition Leader said there could be a case for maintenance of a heavy manufacturing base on the grounds of national security, economic diversity or avoiding the costs of shutting capital-intensive industries only to start them up again when market conditions changed.
Mr Abbott's comments were widely interpreted as opening the door to protectionist measures.
Yesterday, it emerged that two days after Mr Abbott's speech, Ms Bishop, whose home state of Western Australia sits at the heart of the nation's mining boom, told mining industry representatives that she opposed protectionism.
"Rather than adding cost burdens to the mining sector, we believe that it should be as internationally competitive as possible, for we recognise that in a global economy, capital can easily move to countries where the rate of return is the greatest," she said. "The suggestion the mining industry should be forced or mandated to purchase Australian steel, for example, as a form of subsidisation, should be rejected outright.
"We will not support a protectionist policy that will rebound on Australian mining through trade retaliation from overseas, or spark trade wars."
Yesterday, Ms Bishop, who last month intervened in shadow cabinet to sink a Nationals attempt to defy a World Trade Organisation ruling allowing imports of New Zealand apples, said she was not criticising Mr Abbott but simply wanted to "leave no one in doubt" about the Coalition's position on the matter.
Mr Briggs, one of a group of young Liberal MPs pressing Mr Abbott to embrace economic reform, including deregulation of the industrial relations system, last night told the Victor Harbor Business Association that governments should avoid protectionism.
"No one wants to see jobs lost and industries shut, but governments providing false hope are simply prolonging the inevitable," he said.
"Small business owners rightly wonder why they pay higher taxes and see little benefit at the same time as a chosen few appear to receive disproportionate assistance. Protection for one is at the expense of another."
Source: The Australian
China's steel demand to fall by 2050
China's demand for steel is expected to dive by at least 40 per cent by 2050, according to a Chinese government climate adviser who believes the industry will shrink as a result of moves to make it more environmentally friendly.
Dr Jiang Kejun, who leads environmental policy analysis at China's Energy Research Institute of the National Development and Reform Commission, says many heavy industrial products, including steel, are reaching their peak and will be used less under future clean energy programs.
He told a Climate Commission function in Melbourne the need for steel is expected to decline from a peak of 610 million tonnes in 2020 to 360 million tonnes by 2050, along with a fall in the need for other products including glass, aluminium and cement.
His predictions contrast with most other analyses, which estimate higher output and further growth, at least over the next few years.
For instance, the China Iron & Steel Association predicted in May that steel output will reach 680mt this year and could grow to 750mt by 2015.
Singapore-based The Steel Index is even more bullish, saying this week that Chinese steel production could reach 700mt this year and 850mt in 2012.
Dr Jiang said a burgeoning clean energy movement in China includes an ambitious five-year plan to reduce energy intensity by 16 per cent, and carbon intensity by 17 per cent, by 2015.
Some 12.5 million hectares of farmland is also expected to be transformed into forest by the same deadline.
A trial of one of the world's biggest emissions trading schemes is planned across four pilot cities and two provinces, and low carbon development is earmarked for 13 other cities and provinces.
Dr Jiang says the boom presents opportunities for Australia, including its low-carbon building designs, which he says offer a good model for crowded metropolitan living.
"China's cities are growing very quickly, we don't have much time to wait, we should do it right now, as soon as possible," he told AAP.
He is particularly keen on bringing riverbank bicycle tracks to China, similar to those along Melbourne's Yarra River.
And Dr Jiang confirmed China is closely watching the evolution of Australia's carbon pricing scheme, ahead of legislation to be introduced for a fixed price on carbon into parliament next Tuesday.
Climate Commissioner Roger Beale said China's five-year plan requires the republic to double its improvement in energy efficiency, forcing it to embark on initiatives "right across every sector".
He said China's movement away from resource-intensive industries and an export-oriented economy would lead to a change towards a greener, more domestic focus.
Source: businessnews.com
http://www.wabusinessnews.com.au/article/Chinas-steel-demand-to-fall-by-2050
New stimulus call as building industry slumps further
THE Housing Industry Association (HIA) has called for renewed stimulus for the struggling construction sector after figures showing activity continues to slide.
Industry figures released yesterday reveal that construction activity has dropped for the 15th consecutive month, with commercial building activity suffering more than housing.
The Australian Industry Group (AIG) Performance of Construction Index dropped four points in August to 32.1 - significantly below the 50-point threshold that separates expansion from contraction.
New orders dropped to a two-year low, with house, apartment and commercial construction all registering readings below 30.
HIA chief economist Harley Dale said the federal tax summit next month would be an opportunity to discuss reforms to stimulate the industry.
"Stimulus measures are urgently required to prevent the prospect that new home building could again plumb the depths experienced during the global financial crisis" he said.
AIG public policy director Peter Burn said the building industry had been in a slump since the global financial crisis.
Dr Burn said the extent of the slump was becoming more apparent as past stimulus campaigns, including the schools program, were winding up. He said a lack of new work and tender opportunities was reflected in the August results, with the employment reading softening to 34.9 points and capacity utilisation remaining below the long-term average at 69.2 per cent.
There also was softness in the materials industry, which produces cement, fibro and steel.
"It's hard to know when the sector will pick up," Dr Burn said.
"But the ingredients are there for a pick-up from the wider economy and some of the gloom that's around might be overstated."
The declines in construction come as the property market slides.
Figures released last week showed house prices tumbling faster in Melbourne than any other state capital - down 6.2 per cent in the six months to July.
RP Data-Rismark said capital city house prices across Australia fell for the seventh month in a row.
Source: Herald Sun
SK8 result for Bendigo Regional YMCA
Bendigo Regional YMCA is set to launch its Skateboarding and Scooter Trailer thanks to a recent grant from the McKern Steel Foundation.
The YMCA received over 2 thousand dollars for the purchase and customisation of a trailer to transport the group’s large number of skateboards and scooters to the McKern Skatepark, where ‘The Y’ runs Skate and Scooter Clinics for the young people of Greater Bendigo.
The Bendigo Regional YMCA Skate and Scooter Clinics give young people high quality instruction and training on skateboards and scooters in a fun, safe and friendly environment.
Together with learning the latest tricks, our young people also learn to build sustained and caring relationships, become part of a social network, rise to challenges and enjoy the pleasure of real participation.
YMCA’s Youth Development Officer, Paul Johns, says the grant from the McKern Steel Foundation will make a big difference to the efficient operation of a most important local program.
“Keeping the kit in good order, safely stored and easily transported is really important. Without good skateboards, scooters and transport, it’s that much harder to achieve the outcomes we look for in a program like this,” he says.
“The Grant means we can focus our energy on building confidence, character, connections and competency in our young people which means good things for the wider community, too. Young people who master a skill do feel more positive about their future and are more capable of doing their part for the greater good,” Mr Johns says.
McKern Steel Foundation’s Michael McKern says nearly 2000 local young people will benefit from the grant.
“Our aim is to support those individuals and groups who are out there making a difference in our community and this program has real and sustainable benefits for us all. In building self worth, a sense of belonging, connecting to something bigger than themselves, our young people not only get a thrill but learn the skills we all need to participate fully in a community,” he says.
“The McKern Steel Foundation is really happy to be involved in this innovative, grass roots program that is providing a real opportunity to our young people,” Mr McKern says.
Steel boss arcs up
ONESTEEL chief executive Geoff Plummer has called for immediate interest rate cuts to stave off a broad economic slowdown and to take pressure off the high Australian dollar.
Addressing the National Steel Convention - attended by both Prime Minister Julia Gillard and Opposition Leader Tony Abbott - in Canberra yesterday, Mr Plummer said several ''distortionary'' factors were making the Australian dollar ''unnecessarily high'' and affecting the steel industry's ability to compete.
''We support free trade and a market-based approach - but the playing field must be level,'' Mr Plummer said.
Mr Plummer said the federal government should ensure the Australian dollar was not distorted by ''other countries artificially managing their currency''.
''I'm making these comments not to take a shot at China, but to try and [create] some better understanding of the impact of us having a totally free and floating currency, when many of our trading partners don't,'' he told BusinessDay.
''That has some pretty significant implications for the Australian economy.''
OneSteel's rival, BlueScope Steel - having been under pressure from the high dollar and cheap Chinese imports - cut 1000 jobs after announcing a $1 billion loss last month.
Mr Plummer said if the current situation of high interest rates and the high Australian dollar persisted, there would be long-term structural implications for the steel industry, including more job losses and a loss of skills and manufacturing capacity.
While not suggesting we take the same level of drastic action as Switzerland did last week - it put a cap on its exchange rate to protect its export industries - Mr Plummer said that country had recognised its high exchange rate was likely to inflict damage on its economy and sought to remedy the situation.
''We should not try and make our exchange rate artificially low, but we can and should address the distorting factors that make our exchange rate unnecessarily high,'' he said.
Mr Plummer said an urgent cut to interest rates was vital to boosting a flagging economy.
He said that despite the stronger than expected June-quarter GDP figures released last week, leading indicators such as construction activity and employment figures were painting a bleaker picture - with not just the steel industry but also the broader manufacturing, tourism, education and construction sectors all struggling.
The Reserve Bank's inaction on interest rates, he said, could ''accelerate and amplify'' the broader economic slowdown that was clearly appearing.
While the RBA had been worried about combating inflation, Mr Plummer said, the risk of an economic slowdown was far greater.
''I think what the Reserve Bank needs to do is signal an ability and willingness to do it and that would provide immediate relief across a range of sectors.''
Speaking at the same conference yesterday, BlueScope chief executive Paul O'Malley said the federal government's policy needed to support competitiveness and ''ensure Australian steel gets a fair go''.
Mr O'Malley said he welcomed recently introduced anti-dumping reforms - which are aimed at preventing an inundation of below-cost imports into the Australian market - and called for local content requirements on major Australian projects to be more than ''tokenism''.
Source: The Age
http://www.theage.com.au/business/steel-boss-arcs-up-20110912-1k5z3.html#ixzz1Xmicnyf0
Grand Final Breakfast set to impress
2011 marks Bendigo's inaugural Telstra Rising Light AFL Grand Final Breakfast. This will be a great social event, and what better way to kick off the big day than rubbing shoulders with some of Bendigo’s finest to raise funds to support local homeless youths.
The event has been arranged by Emma McKern as part of her commitment to Horizon House's Rising Light competition which sees young people competing to raise the most funds for the charity, supporting homeless youths in Bendigo.
With limited tickets available, the event will be held at the Platinum Room from 8am on Saturday October 1st.
Ms McKern is pleased to be involved with such an important charity saying, "With an estimated 300 youths on the streets or couch-surfing in and around Bendigo each night, there is a significant need for the assistance and services Horizon House provides."
Telstra have come on board as major sponsor and have secured the services of a high profile AFL guest speaker.
Watch this space for further updates as the identity of the AFL star is revealed.
A gourmet hot breakfast is included in the ticket price of $55 (or Tables of 12 @ $50 per person).
The event will also see lucky door prizes, a huge raffle and sporting memorabilia for sale and audio visual entertainment.
Tickets are available now by contacting Emma McKern on 0403 138 503 or emma @mckern.net.au.
Ride sheds light on mental health
Cutting a few laps is an everyday outlet for most teenagers with a driver’s licence.
But for inspirational 15-year-old, and McKern Steel Foundation recipient, Megan Anderson, she’ll be doing 500 laps on a bike, to raise money and awareness for adolescent mental health.
While many in Bendigo would baulk at the idea of riding to work even once a week, Megan will cycle 206 kilometres in one day, at the Tom Flood Velodrome on Friday, October 14, with funds raised going to St Luke’s youth mental health camps and Federal Government health initiative headspace.
“It should take about eight hours,” Megan said with a wry grin, all too aware of the hard work ahead.
But a few hundred laps of the velodrome will be nothing compared to the mental hurdles the Bendigo South East College student has scaled in the past 12 months.
Megan’s troubles began a few years ago when she began fainting.
Thinking it was hereditary, the family weren’t too concerned until early last year, when she began fainting up to 10 times a week.
Turns out Megan suffered from psychogenic seizures; a condition where mental stress can manifest into physical difficulties.
“It comes from the stress of school and school work,” she said of the conversionary illness.
At its worst, the family estimated she had more than 80 episodes in third term last year; most of them happening at school, which came with large physical and social implications.
But along with a solid network of support from family and friends, integral to her recovery has been the bike, and today, she suffers just one seizure in a normal week, depending on how she’s feeling.
In preparation for the October ride, Megan took another impressive step forward recently, when she spoke to nearly 200 Year 9 students about her recent battles, and the importance of resilience.
“It wasn’t a choice (to improve), I had to,” she said of her recovery.
The speech moved pretty much the entire crowd.
“I reckon I saw about 40 kids break down, there wasn’t a dry eye in the house,” Year 9 BSE Learning Team leader Steve Thorn said.
“We spend hundreds of dollars in motivational speakers for our Life Skills sessions.
“It was the most powerful session I’ve done.”
On the day the Bendigo Weekly walked the grounds of South East Bendigo College, one student came up to Megan and said: “you inspire me”.
After the ride, and high school, Megan has plans on working in mental health, with children.
“With the huge support from my family, friends and school I am well on the way to recovery,” she said. “I have realised how a mental illness can truly affect every aspect of your life. I feel heaps better about everything.”
Local cyclists can get involved with four consecutive Sunday cycles leading up to the big ride, starting on Sunday, September 11, with the final ride will finish in the gardens of Nanga Gnulle, on Sunday October 2.
To support Megan, cheques can be sent to Bendigo South East College, Meggi’s Ride and addressed to BSEC, Ellis St, Flora Hill 3550.
For more information, contact Mr Anderson on 0439 433 057.
Source: Bendigo Weekly
http://www.bendigoweekly.com.au/news/inspiration
McKern Steel takes one step closer to top honour
In an update to last week's story regarding McKern Steel's selection as one of the top nominees in the
BlueScope Distribution Leadership and Innovation Award, we can now report that the company has reached the top three nominees within the category.
The winner of the statewide award will be announced on October 15 in Ballarat.
Managing Director Michael McKern said, "The whole team is simply ecstatic with this achievement and recognition, and regardless of the final result we are really proud of getting to this stage, and being in the final three."
The Regional Achievement & Community Awards for Victoria are about recognising rural and regional individuals and groups in your community.
BlueScope Distribution Leadership and Innovation Award
Tenacity, dedication, selflessness, leadership and innovative thinking are the key qualities of those amazing individuals who are the “driving force” in their community. These individuals are at the forefront of community contribution in their field of endeavour.
They may have overcome significant difficulty, adversity or hardship to achieve excellent outcomes and raise pride in the community and our state. They may have pioneered significant changes in their community, business or organisation that have altered the way people think and perform for the better. The BlueScope Distribution Leadership & Innovation Award will acknowledge role models who through their leadership, innovation and driving force pave the way for others to follow.Pyramid wins a thriller
YCW's netballers will feature prominently in the grand final action this weekend with its A Grade, B Grade, C Grade and 15-Under teams going for glory.The Senior and Reserves football teams are out of contention after Preliminary Final losses on Saturday.
In the Seniors, Pyramid Hill has made it through to the 2011 Loddon Valley Football League grand final after a last-gasp goal from Gavin James.
With YCW leading by four points in Saturday’s preliminary final at Marong and just 70 seconds left on the clock, James lined up from a half-forward flank.
He was about 30 metres out on the wrong side for a left-footer, but the vice-captain carefully drove home the goal to book the Bulldogs a grand final berth against Bridgewater.
After a pair of unsuccessful preliminary finals campaigns the past two seasons, Pyramid Hill won 10.12 (72) to YCW’s 9.16 (70).
YCW coach Phil Walsh said his playing group was shattered.
“We couldn’t ask any more from the players. I suppose we should have kicked more goals in the first half, but all of our group had a real dip,” he said.
Source: Bendigo Advertiserhttp://www.bendigoadvertiser.com.au/news/local/sport/football-australian-rules/pyramid-hill-wins-a-thriller/2280717.aspx?storypage=2
Posted August 2011
Steel manufacturing bust is the flipside of our Chinese mining wealth
Michael Stutchbury, Economics editor 
Instead of celebrating BHP Billiton's record $US23.6 billion ($22.4bn) profit, the Lucky Country is getting into a muddle over the windfall from our biggest ever mining boom.
"The Dutch disease is crippling Australia's economy," Australian Workers Union boss Paul Howes fumed this week after BlueScope Steel culled 1000 jobs and exited its export business in response to a $1bn loss.
Howes and a group of federal Labor MPs demanded action to prevent a temporary mining boom from permanently weakening the economy by hollowing out manufacturing: the so-called Dutch disease.
Proclaiming the worst manufacturing crisis since the 1930s Depression, Howes said the Reserve Bank must cut interest rates. The strong dollar had to be weakened. Canberra had to confront Beijing over its undervalued currency and require mining companies such as BHP to buy more locally made steel for their $430bn pipeline of minerals and energy projects.
Yet most of Howes's demands would destabilise the economy rather than strengthen it because his Dutch disease is the wrong diagnosis. What's really happening is the rise of China and now India is shifting Australia's so-called comparative advantage towards the export of bulk commodities, mainly iron ore, coal and gas, and away from manufactured products such as steel.
Australia's economic reforms of the 1980s and 90s - including much lower import protection for local manufacturing - rightly diagnosed that nations prosper from trading with each other after specialising in what they do best. The difference now is that Australia's comparative advantage is being radically shifted by China's industrialisation and urbanisation.
And steel is central. China's annual steel production has surged in the past decade from 100 million tonnes to 700 million tonnes, nearly half global production.
The biggest industrialisation the world has seen dwarfs the previous surge of global steel output driven largely by Japan's 60s industrialisation, which opened up Western Australia's Pilbara iron ore region.
Among commodity exporters, Australia has been best placed to take advantage of the sharply increased prices China's steel-makers have been prepared to pay for their chief inputs: iron ore and coal. Since 2003, iron ore export prices have jumped from $US10 a tonne to $US140 a tonne and coking coal from $US50 to more than $US230.
"It's as if we woke up one morning and found the world had made us richer as a nation," Treasury secretary Martin Parkinson said this week.
This China-driven boom in resource prices has catapulted Australia's terms of trade - the ratio of export prices to import prices - to record highs. Parkinson reckons Australia's national income has grown 14 per cent more than national production since 2003 as a result.
Australians don't appreciate how their current prosperity depends on this. Imagine the counter-factual of cutting your income 14 per cent. Then imagine that the financial crisis actually did throw Australia into recession; the jobless rate was 9 per cent rather than 5 per cent; that Canberra took back the eight successive years of income tax cuts; and that petrol, computers and overseas holidays cost a lot more because of a weaker dollar.
As the economy restructures around our new comparative advantage, mining and energy has expanded from about 5 per cent to 10 per cent of national output. We've overtaken Brazil as the world's biggest iron ore producer. Resources have increased from one-third to more than half our exports. And the biggest resources investment boom in Australian history will peak in the next few years. Echoing the Pilbara in the 60s, this includes the new industry of Queensland coal seam gas to supply power to Asia.
Hence BHP Billiton's stunning 86 per cent bottom line jump to easily the biggest profit by an Australian company and one of the biggest by any global company. Iron ore alone posted an underlying profit of more than $13bn.
This bonanza will flow into government coffers through taxes and royalties; to workers through more jobs and higher wages; to shareholders through a 22 per cent dividend hike; and it will finance a further expansion of iron ore and coal capacity.
But the flipside of prosperously feeding the blast furnaces and power plants of Asia is that Australia is less able to compete with our biggest export market in making steel. It's why welders earn more than $300,000 constructing gas rigs off WA while BlueScope Steel is retrenching steel workers in Wollongong.
Chief executive Paul O'Malley spelled out the squeeze on BlueScope's export business, first from the soaring iron ore and coal input costs that boosted BHP's mega-profit, second from China's massive steel expansion and third from the strong dollar. "In a macro-economic or global steel situation where you have high raw material prices or costs, a high Aussie dollar, low steel prices and low demand in the Australian market relative to history you have a situation that is very difficult to fight against," he said.
But this doesn't mean the end of Australia's steel industry, only that its seven million to eight million tonne industry can't compete directly with China's 700 million tonne gorilla. So one of BlueScope's two blast furnaces will be mothballed as it focuses on the local market, where distance provides some natural protection. But it still has a global niche in coated steel products, such as its Colorbond. O'Malley says BlueScope is among the top three successful Australian companies operating in Asia. Unlike Howes, O'Malley does not call for action to weaken the dollar. "We can't defy the reality of the Aussie dollar," he says. "I think the terms of trade underpin the fact that it will stay there for some time."
A floating dollar remains sacred for Treasury, the Reserve Bank and even left-wing ministers such as Industry Minister Kim Carr. The currency's strength spreads the mining boom wealth by cutting import prices and financing our cheap overseas holiday boom. But it also crowds out the industries where our comparative advantage has weakened so that mining can expand without stoking inflation. Australia held down the dollar during previous mining booms, but this merely overheated the economy and spilled over into double-digit wage-price growth.
Instead, Labor is throwing a few hundred million dollars at the steel industry, largely to compensate for its looming carbon tax, and to help retrenched workers. And this week it appointed former Queensland premier Peter Beattie as an "envoy" to connect manufacturers to resource projects.
But Resources Minister Martin Ferguson insisted this was "not about mandating Australian content" in big resource projects: a form of protectionism that would push up mining costs. He rejected claims Australian manufacturers were being locked out of big project tenders. BHP Billiton's current Pilbara iron ore expansion included 90 per cent Australian content. The $43bn Gorgon liquefied natural gas project already had secured $14bn in Australian content.
Instead, Ferguson urged manufacturers to follow Australia's mining services firms, such as for logistics, engineering, legal services, financial services and catering. Because they were efficient, mining services companies already generated $9bn in annual exports. Canberra could help manufacturers understand why they failed to clinch resource project contracts. "Sometimes we have to teach them how to do their job," he said.
But Ferguson also let out that Australia had to "reinvent the productivity debate" that it had lost in the past decade. As Reserve Bank governor Glenn Stevens suggested yesterday, our productivity slump is aggravating the mining boom's manufacturing squeeze by lowering the economy's overall speed limit and keeping inflation simmering.
But recharging productivity will require policies - such as a less regulated job market, genuine tax reform and more market-based infrastructure - that Labor has rejected or bungled. And it demands a big budget surplus now in case China's growth hits a speed bump in the next few years. That's why the "patchwork economy" story being told by Julia Gillard and Wayne Swan is so inadequate.
As Stevens suggests, Australia couldn't resist the China boom's "profound" structural adjustment pressures even if we tried. As Treasury points out, Dutch manufacturing bounced back after its mining boom had passed. And we would only worry about catching the supposed disease if we disbelieved the longer-run China and India growth story. Even then, a more productive and flexible economy would be better placed to respond.
Source: The Australian
ABS figures: Building industry suffering two-speed economy
Australian Bureau of Statistic (ABS) figures released yesterday show building and construction work rose modestly overall in the June quarter.
But there is a growing divide between building and mining-related engineering construction, Master Builders Australia has pointed out.
Meanwhile, the Housing Industry Association said it was a disappointing update for new housing activity in the June 2011 quarter.
Peter Jones, Master Builders Australia's chief economist said, "The latest figures show parts of the industry struggling, confirming evidence from Master Builders' latest survey showing a dramatic turnaround in builder sentiment as commercial and residential building-related stimulus spending programs come to an end."
"The business environment has become much tougher in recent times, not helped by uncertainty regarding the world economy and share market volatility."
Jones said the Abs figures shows that work in the pipeline for the non-residential sector continues to fall, with builders also facing a downturn in forward indicators such as sales and enquiries as evidenced by our surveys.
"After promising so much, residential building is struggling to regain lost momentum triggered by last year's interest rate rises and the ongoing credit squeeze that continues to suppress the upturn,” he said.
"There was another strong increase in engineering construction in the quarter as projects ramp up from the huge pipeline of resources-related work, particularly in Western Australia and Queensland.
"In contrast to the positive outlook for engineering construction, the residential building upswing faces ongoing challenges and the non-residential building sector is desperate for a pick up in private sector demand to replace ebbing stimulus-related work.
"For the building and construction industry overall, a sectoral divide is opening up, with strong engineering construction fed by the mining boom contrasting with a weak building sector caught in the slow lane of a post GFC economy struggling to transition to a private sector led recovery."
The Housing Industry Association said it was a disappointing update for new housing activity in the June 2011 quarter.
HIA chief economist, Dr Harley Dale, said that seasonally adjusted residential building work done fell by 4.1 per cent to an annualised level of $45.4 billion in the June 2011 quarter.
"New residential building work done fell by 5.4 per cent reflecting a 1.8 per cent decline in detached housing and a slump of 11.9 per cent in "Other dwellings"," Dale said.
"This result suggests that new dwelling investment will detract from GDP growth in the June quarter national accounts due for release in two week’s time."
Major renovations (alterations and additions) activity posted a healthy 3.4 per cent rise in the June 2011 quarter, marking the third consecutive increase. The annualised worth of work done on renovations was almost $7.2 billion, the highest in nearly three years.
"Major renovations activity continues to grow as Australians increasingly baulk at the mounting transaction costs and taxes they will incur if they trade-up to another property or build a new home," said Dale.
"Substantial reform of the very high and inefficient taxation of new housing in Australia will be a vital part of being able to call the Tax Forum in October a success.”
In the June 2011 quarter, seasonally adjusted new residential building work done fell by 13.0 per cent in New South Wales, 9.7 per cent in Western Australia, 7.0 per cent in the Australian Capital Territory, 6.6 per cent in Queensland, 0.3 per cent in Victoria, and 0.2 per cent in Tasmania.
In original terms new residential building work done in the Northern Territory in the June 2011 quarter was down by 38 per cent when compared to the June quarter of last year.
Source: Architecture & Design
McKern Steel named as award finalist
McKern Steel has been selected as one of the top 10 nominees in the BlueScope Distribution Leadership and Innovation Award, of the prestigious 2011 Regional Achievement and Community Awards
Having reached the Semi Finals, our nomination will now be reviewed by the judging panel during the final stages of judging to see who our three finalists in each category will be for 2011.
The Regional Achievement & Community Awards for Victoria are about recognising rural and regional individuals and groups in your community.
There can never be enough encouragement and support for those working in rural and regional areas. Awards such as these create an opportunity to say thank you to businesses, community groups and individuals who work tirelessly in developing their chosen fields of endeavour.
BlueScope Distribution Leadership and Innovation Award
Tenacity, dedication, selflessness, leadership and innovative thinking are the key qualities of those amazing individuals who are the “driving force” in their community. These individuals are at the forefront of community contribution in their field of endeavour.
They may have overcome significant difficulty, adversity or hardship to achieve excellent outcomes and raise pride in the community and our state. They may have pioneered significant changes in their community, business or organisation that have altered the way people think and perform for the better. The BlueScope Distribution Leadership & Innovation Award will acknowledge role models who through their leadership, innovation and driving force pave the way for others to follow.
Kennington's jumping for joy over equipment
It was a case of coffee, cake and monkey bars when Kennington Pre-School celebrated the purchase of its new outdoor equipment with a special morning tea this week.The equipment was bought with the help of a $2000 grant from the McKern Steel Foundation.
It will form part of the preschool’s Learning Through Play program, which promotes the idea that non-formal learning environments are crucial to the development of children’s core skills. Parent Belinda Smith said the school relied on support from the wider community, as well as teachers and parents, to improve its services.
“Community grants give us a real boost,” she said.
“It’s great knowing that our community cares about our children and, of course, this new equipment will open up new learning opportunities for them.”
McKern Steel Foundation’s Michael McKern said Kennington Pre-School’s funding application ticked all the right boxes.
“The objective of our foundation is to increase access to the facilities and functions that enable our communities to be the best they can be,” Mr McKern said.
“Creating new opportunities, supporting worthy causes and thinking about our future leaders is important for all of us.”
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/news/education/kenningtons-jumping-for-joy-over-equipment/2274207.aspx
Grand Final beckons for YCW Seniors and Reserves
McKern Steel sposnsored club YCW will see its Seniors and Reserves footballers in Preliminary Finals action this Saturday at Marong.At Bridgewater’s G.J. Gardner Oval last weekend, YCW kicked away from Mitiamo in the final quarter to win the first semi-final.
The Eagles led by just three points at three quarter-time, but dominated the last term to win by 29 points, 16.26 (122) to 14.9 (93).
And the margin would have been plenty more had YCW not kicked inaccurately in the last term. The Eagles scored 14 times in the last quarter for a return of 4.10.
Eagles’ coach Phil Walsh said pre-game his side would win if they could contain Mitiamo forwards Ryan Haythorpe and Alex Chapman to a combined six goals.
And that’s what the Eagles did, with the pair each kicking three goals.
“Our midfield was terrific today,” Walsh said.
“It was frustrating at times because we were dominating the game, but just couldn’t kick goals.
“Everyone worked hard and just played for each other, so it was a real team effort and a big improvement on last week.”
The best for the Eagles – who won their first final since 2002 – included veteran Steve Turner, who surprisingly played in the ruck, inclusion Shaun Dwyer (three goals), who presented well up forward, midfielder Daine Lowry and Matt Pendlebury, who played on Haythorpe.
YCW big man Adrian Cronin was the leading forward on the ground with five goals.
Mitiamo coach Wayne Eve said the Superoos were outplayed by a better side.
“They fought hard all day and were the better side, so congratulations to them,” Eve said.
“It’s disappointing to lose today, but we’ll look back on the year as a big positive and look forward to next season.”
James Ginnivan battled hard in the midfield all game for the Superoos, Robert Lawry kept the dangerous Chris Wilmot quiet, while Eve was also pleased with the effort of Haythorpe.
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/sport/football-australian-rules/mean-machine-books-grand-final-berth/2273485.aspx?storypage=2
1350 steel jobs to go as high dollar takes toll
AUSTRALIA'S biggest steel maker, BlueScope, will shed more than 1000 jobs today in a new blow to the struggling manufacturing sector that is certain to intensify calls for more government assistance.The company, which has flagged a writedown in assets of about $900 million and a restructure, is also expected to reveal a big financial loss to the stock exchange today.
The job cuts - comprising 1000 employees and at least 350 contractors - will be at operations in Western Port in Victoria and Illawarra south of Sydney.
The latest blow comes after last week's announcement that 400 jobs would go at OneSteel.
Australian Workers Union national secretary Paul Howes yesterday predicted thousands of manufacturing jobs would be lost in the next couple of weeks.
The BlueScope cuts will strengthen pressure on the government from Labor backbenchers and unions, who are seeking extra help for the sector - including trying to get more local products used in the construction of resource projects.
More than 20 ALP backbenchers met last week to be briefed by Innovation Minister Kim Carr. They are urging that the government help the sector, which is squeezed by the high dollar and the mining boom.
Senator Carr said yesterday: ''The government is committed to ensuring a prosperous manufacturing sector. It is always looking at ways to make our programs more effective.''
In an interview with The Age last week, Prime Minister Julia Gillard would not speculate on whether manufacturing would get more help. ''We'll keep working with them,'' she said.
Mr Howes told Sky News: ''We are now facing a major crisis in Australian manufacturing.
''I'm confident that government within the next week will recognise that fact.''
Senator Carr said it was a transformation rather than a crisis. Innovative and creative companies would be able to adjust ''but that won't detract from the pain associated with that transformation''.
Mr Howes said federal and state governments must act to get more Australian content used in resource projects and stop ''scandalous'' arrangements under which foreign investors were insisting on the use of foreign materials.
He had received calls from chief executives foreshadowing announcements over coming months that would bring a fundamental shift in the nature of manufacturing. Areas for job losses included base metal manufacturing and downstream manufacturing.
''Everything is under pressure at the moment, primarily and almost solely because of the dollar,'' Mr Howes said.
He attacked Treasury, saying it seemed to think that ''if you lose one job here, that automatically that person is going to be replaced over here. … That's not our experience in Australia.''
He said more had to be done to boost domestic consumption of Australian products, and attacked the ''chronic and scandalous'' lack of use of Australian content by the resources sector during the boom.
This was a significant factor in the pain manufacturing was feeling, Mr Howes said.
Source: The Age
http://www.theage.com.au/national/1350-steel-jobs-to-go-as-high-dollar-takes-toll-20110821-1j4vp.html#ixzz1Vi29GhkV
OneSteel chief hoses down rumours of merger with BlueScope
ONESTEEL says a merger with the bigger BlueScope Steel could make sense if the storm buffeting the local sector does not calm down, but the preferred route was to make its own way out of its present woes.
Speculation the two steelmakers will be forced to merge, combining BlueScope's bigger, more-efficient Port Kembla blast furnaces with OneSteel's South Australian iron ore supply, has been growing recently as raw material, demand and currency pressures force both companies into structural reviews.
Yesterday, after reporting a 6 per cent drop in underlying full-year profit to $235 million and saying he would cut steel production and more than 400 workers, OneSteel chief executive Geoff Plummer tried to dampen the merger speculation.
"Much of the analysis that I've seen in terms of the benefits has been relatively simplistic and probably doesn't understand the relative strengths and weaknesses of the two companies; the nature of their (BlueScope's) business is quite different to ours," he said.
BlueScope said last week it would take a $900m writedown on the value of its Australian business while flagging a halving of production at its Port Kembla steelworks.
Mr Plummer highlighted OneSteel's greater exposure to a turnaround in domestic steel demand, its more complex product range and its production of long steel products used in construction as major differences between the two companies.
"It's not as simple as saying you've got three blast furnaces (between BlueScope and OneSteel) and you'd be better off with two," Mr Plummer said. "The question to look at is whether the journey creates value or destroys value.
"I think for OneSteel, we'd be better off focusing on the things we can control."
That said, he brushed off questions on whether the two companies had been in talks about a merger and said there were specific circumstances where a merger would make sense.
Mr Plummer would not reveal what they were, but indicated it they would include a continuing decline in the steel market and a strong currency.
The full-year profit was in line with analysts' expectations, helping the stock finish 2c higher yesterday at $1.45.
BlueScope finished 1c higher at 90c, while the broader index fell 1 per cent.
OneSteel declared an unfranked final dividend of 4c, down from 6c last year.
The company's very profitable iron ore exporting operations boosted its full-year earnings before interest and tax by 57 per cent to $524m. But the steel business slumped to a $185m loss, from a $3m loss last year. Mr Plummer's remuneration for 2010-11 was $3.5m, down from $4.9m the previous year.
The decision to cut staff and steel output had nothing to do with the carbon tax and was all about a higher dollar and trying to stay competitive with imports, Mr Plummer said.
He called on a more forward-looking approach from the Reserve Bank, after interest rate rises last year noticeably slowed manufacturing in the country.
"They're still running the economy looking in the rear-vision mirror, rather than looking forward at what's coming," Mr Plummer said.
"They've got too much weight on the risk of inflation and not enough on the weight of the fact what they are doing is stifling much of the economy at a time it shouldn't be occurring."
Source: The Australian
http://www.theaustralian.com.au/business/companies/onesteel-chief-hoses-down-rumours-of-merger-with-bluescope/story-fn91v9q3-1226116332145
Job axings not the last, warns OneSteel
ONESTEEL'S decision to axe 400 jobs appears to be the tip of the iceberg, with further job cuts set to hit Australia's struggling steel industry.
The spectre of further redundancies came as OneSteel announced a diminished annual profit of $230 million, and follows rival steel maker BlueScope's recent confirmation that it was considering job cuts. OneSteel's profit was 11 per cent below the previous year's result, and the combined woes of the two steel makers has revived talk of a merger nine years after they were both spun out of BHP Billiton.
Despite playing down the prospect of a merger yesterday, OneSteel chief executive Geoff Plummer repeatedly refused to deny that talks had taken place between the companies. ''There are factors where it could make sense,'' he said. ''On balance, I think there are more difficulties at the moment than would make sense, but I would never rule anything out in the world we live in today.''
Mr Plummer said such a merger might be more attractive for BlueScope, which was less diversified than OneSteel. ''We've got a huge amount of leverage to even modest improvements in terms of the domestic market, which I don't think BlueScope has to the same degree,'' he said.
BlueScope declined to comment until the release of its results on Monday.
OneSteel hopes to save $40 million annually by axing the 400 jobs - some of which have already gone - from its manufacturing and distribution divisions before September.
Mr Plummer said the cuts would be across operations in Victoria, New South Wales and Queensland, and were unlikely to be the last.
''We are only part of the way through that, I'm not going to make public a target [number], but we are certainly only part way there,'' he said.
The steel sector's struggles with the high Australian dollar are well known, but Mr Plummer said OneSteel had also been hit by ''bloody hopeless'' demand for construction in non-mining regions like NSW.
OneSteel shareholders will be paid an unfranked 4¢ dividend on October 13, taking the full-year payout to 10¢. OneSteel shares rose 1.5¢ to close at $1.45.
Source: The Age
http://www.theage.com.au/business/job-axings-not-the-last-warns-onesteel-20110816-1iw9t.html#ixzz1VKwDnNtG
Jobs threat as BlueScope Steel buckles
THE nation's biggest steelmaker - and one of the fiercest critics of Labor's proposed carbon tax - has put the future of its historic Australian operations under review in the face of the soaring dollar and weak demand.BlueScope Steel, whose chairman, Graham Kraehe, says the Australian manufacturing industry is "under siege", last night announced a $900 million writedown of its asset values and signalled a review of its "domestic steelmaking production capacity".
It stressed that "no decisions have been made" but noted the "macro-economic challenges of a high Australian dollar, high raw material costs and low prices".
BlueScope - the former BHP arm that employs about 5000 workers at its blast furnaces at Port Kembla in NSW and southeast of Melbourne - hinted at further writedowns and suggested that cutting production was the only chance to get back on a sustainable financial footing.
The statement made no mention of the Gillard government's planned carbon tax. Mr Kraehe and chief executive Paul O'Malley were harsh critics of the proposal in the lead-up to the June announcement of the tax, saying it could destroy the industry, but news of a $300m steel industry compensation package, with a review after four years, appeared to have appeased the company.
Source: The Australian
http://www.theaustralian.com.au/national-affairs/jobs-threat-as-bluescope-steel-buckles/story-fn59niix-1226113425924
Get into the garden at Eaglehawk Primary School
Eaglehawk Primary School has been awarded a grant by the McKern Steel Foundation to extend is participation in the Stephanie Alexander Kitchen Garden Project.Growing across the country, the kitchen garden concept has school children up to their elbows in dirt – and loving it.
Eaglehawk Primary Principal Neville Sharp says the gardens are changing the way children approach and think about food.
“Right here in Eaglehawk, our children are enthusiastically learning how to grow, harvest, prepare and share fresh, seasonal food. By setting good examples and engaging children’s curiosity, as well as their energy and their taste buds, our school is providing positive and memorable food experiences that will form the basis of positive lifelong eating habits,” he says.
“And thanks to the McKern Steel Foundation, we are on our way to extending our participation in the project and retaining our very valuable gardening and chef staff who have really made such an important impact on the lives of our students,” Mr Sharp says.
As participants in the Kitchen Garden Program, eight to twelve year-old children spend time in a productive vegetable garden and home-style kitchen each and every week. There they learn skills that will last them a lifetime, and discover just how much fun it is to grow and cook their own seasonal vegetables and fruits.
McKern Steel Foundation’s Michael McKern says the Eaglehawk Primary School’s participation in the Kitchen Garden project has already made a significant difference to the community’s children.
“To see the interest and attention that the children put into planning and caring for their gardens and their joy a seeing and eating what comes out is wonderful. These projects remind us to teach our children about how connected we are to our landscape and how much we depend upon it for our health and wellbeing,” he says.
“The McKern Steel Foundation is impressed with the Eaglehawk Primary School Garden and is delighted to provide our support for the extension of the project,” Mr McKern says.
YCW Eagles fly high again
YCW is again the Loddon Valley Football Netball League’s champion club for the 2011 season.Across their three football and five netball teams, the Eagles won 109 of their 128 games during the home and away season and finished with a combined average percentage of 218.7.
The Eagles finished 30 wins clear of their nearest rivals, Marong.
YCW – the competition’s only Bendigo-based club – had all eight of its teams finish in the top three, meaning they all have double chances for the finals, which start this weekend.
Five of the club’s teams – the reserves, along with A-grade, B-grade, C-grade and 15-under netball sides – finished on top of the ladder.
The Eagles’ super record of 109 wins includes 38 from 48 games on the football field, and 71 from 80 on the netball court.
This is the second year in a row YCW will have all eight teams in the finals, although, last year the Eagles won just one premiership – the A-grade netball following a thrilling one-goal win over Mitiamo in the grand final.
“It has been a really good effort by the club, especially when you look back to three years ago when the footy side of things was fairly bleak,” YCW president Brendon Breewel said yesterday.
“So to get back up to where we are now in a fairly short time is really pleasing.
“The netball has always been pretty strong, with the A grade girls going for four flags in a row this year.”
Marong (79 wins), Calivil United (78), Mitiamo (69) and Bridgewater (68) fill positions two to five on the 2011 club champion ladder, with the four clubs separated by just 11 wins.
While YCW has all eight teams in the finals, Calivil United and Marong have seven each.
For the first time since 2003, Inglewood will be represented on the football field during the finals.
The Blues’ under-17s finished fourth on the ladder and will be the club’s only representative in the finals.
Bears Lagoon-Serpentine is the only club that won’t have any teams in the finals.
However, the Bears were unlucky, with their senior and reserves football teams both finishing sixth.
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/sport/football-australian-rules/ycw-eagles-fly-high-again/2262097.aspx
Posted July 2011
Provisos set for BlueScope Steel assistance plan
BlueScope must keep producing steel in Australia if it wants to get a share of the $300 million steel industry assistance package announced with the carbon tax.
Climate Change Minister Greg Combet told the Mercury steelmakers BlueScope and OneSteel would need to meet a threshold of 500,000 tonnes of steel production to qualify for assistance.
BlueScope's $180 million share is expected to cover its carbon tax bill for the first four years.
Mr Combet said some details of the Steel Transformation Plan (STP), which was developed late in the carbon tax negotiations, were still being decided but the Government would not dictate how the money was to be spent.
"They'll be able to access it for several key purposes," he said. "One of them is production-related, so that can certainly assist with their carbon cost."
Once the production threshold has been met, there will be three criteria that trigger the funding: spending on production, innovation or capital upgrades.
There is not an obligation to reduce carbon emissions.
The industry will also have 94.5 per cent of its carbon costs covered via free permits.
"Essentially it takes the carbon price issue off the table over the next four, five years in particular,’’ Mr Combet said. ‘‘But they can access it for other things that will encourage them to upgrade their facilities.
‘‘It leaves some discretion in their hands about how they want to utilise it.’’
If BlueScope reduces production levels in a bid to cut costs it will not lose funding as long as production remains above 500,000 tonnes. Last year, it made almost fivemillion tonnes of steel at Port Kembla.
Source: Illawara Mercury
http://www.illawarramercury.com.au/news/local/news/general/provisos-set-for-bluescope-steel-assistance-plan/2228193.aspx
Doubts over Chinese steel output
China is underreporting the amount of steel it makes by about 40m tonnes a year – roughly the amount made by Germany – according to a new analysis that provides insights into the recent high prices for the main raw material used by the world steel industry.
Detective work by Meps, a UK steel consultancy, indicates that Chinese steel output last year was 672m tonnes – nearly half of the world output – as opposed to the 627m tonnes reported by the Chinese authorities.
Behind the underreporting, according to Peter Fish, Meps managing director, is that plants that Beijing would like to shut down because they are not economical and produce too much pollution have stayed open to meet local demand.
Regional data-gathering bodies around China have disguised the fact the mills are still churning out metal by declaring that output is lower than is the case. According to Mr Fish’s analysis, the higher-than-reported steel production creates extra demand for iron ore – the main constituent of steel – and has been one factor keeping prices of the commodity at unprecedented highs, eating into steelmakers’ profit margins globally.
Since January 2009, iron ore prices have more than doubled, in contrast to a 50 per cent rise in benchmark steel prices.
Terance Ko, a steel analyst at the Hatch Consulting group in China, said: “Mr Fish’s numbers seem entirely plausible and is in line with our own estimate.”
Xu Zhongbo, analyst with Beijing Metal Consulting, said steel output figures emanating from China were routinely adjusted to fit stated government policy.
“If the country is curbing capacity ... then [a specific province] will report lower steel production. If the government’s demand to limit production is not too great, the province will report the actual figure,” Mr Xu said. The high prices for iron ore have benefited the three big producers – Rio Tinto, Vale and BHP Billiton One of the big three – which asked not to be named – said: “We agree steel production last year was higher than the statistics suggest. From an iron ore company perspective, our marketing people expect these things to happen.”
The World Steel Association – the Brussels-based trade group for the industry – relies on official Chinese figures for its own widely followed data. The WSA said there might be “a small amount of underreporting” from China but it was “nothing like” what Mr Fish has reported.
JFE, the Japanese steelmaker, said it recognised there might be a gap between reported and actual production from China. “We believe that as the country continues to reorganise its steel industry to allow for the closure of outmoded plants, the gap ... will become smaller.”
Source: Financial Times
http://www.ft.com/intl/cms/s/0/d2626f94-b0b6-11e0-a5a7-00144feab49a.html#axzz1SnT01XR6
Queensland steel 'locked out' of projects
Queensland's steel suppliers want a better deal for local firms, saying they are being locked out of some of the biggest infrastructure projects in the state.
The industry's peak organisation says Australian firms cannot compete against the cheaper labor costs from overseas steel suppliers.
They now worry that future "clean energy" projects will be built off-shore and shipped to Australia.
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Australian Steel Institute chief executive Don McDonald said Australian firms were winning less than 10 per cent of the steelworks in new developments.
"Australian fabrication plants and engineering services are largely locked out of many of the jobs and investment that is being made and there is little return for Australian manufacturing from these large scale resource projects," he said.
The ASI will soon launch a "lost tonnes" campaign to measure the declining share of the market won by local firms as imported steel erodes their base.
The issue is linked to the carbon price debate because of the impact of rising local steel costs, despite a $300 million rescue package which goes to two firms, Bluescope Steel and
OneSteel.
BlueScope and OneSteel smelt Australian steel at Newcastle and Whyalla, but the local steel is then sold through the network of Australian Steel Institute's member firms.
At the heart of the Queensland argument is the $2.1 billion stage two expansion of Gladstone's Yarwun aluminium refinery, set to be finished this year.
While stage one was built in 2004 with Australian steel, 90 per cent of the $2.1 billion stage two plant to be finished later this year is being built from fully-imported steel.
ASI Queensland state manager John Gardner said the industry was worried the skills among the 30,000 people working in Queensland's steel industry could be lost.
"Projects like Yarwun Two, which is the second stage of the Comalco Aluminium refinery, you had 17,000 tonnes of stick steel coming in," he said.
"But the thing is that the first stage of that project was done locally by Australian steel fabricators and the second stage was virtually, fully imported."
Mr Gardner said Australian firms understood the project managers were trying to reduce their costs, but said this was the area where national and state governments needed to act.
Innovation Minister Kim Carr launched a $34.4 million four-year "Buy Australian at Home and Abroad" program to link Australian firms to new infrastructure projects in the Federal Budget.
Mr Carr said this would boost the state-based Industry Capability Networks to achieve this.
"In the last three years, in the 20 projects where an ICN officer has been 'embedded' in the procurement of major major projects, Australian companies have won approximately $300 million worth of contracts that could otherwise have gone overseas," a spokeswoman said.
Mr Gardner said Australian steel firms did not want to see tariffs lifted to protect Australian steel. Instead they want early talks with project owners.
"We need negotiation at the early stage of the projects, because currently the government negotiates on environmental concerns and on getting indigenous workers into the projects," Mr Gardner said.
"We feel that this is another stage where they should be looking at supporting the local manufacturers, particularly in the regions."
However Mr Gardner said the loss of skills in steel engineers, detailers and welders was a real threat to Australia's steel industry.
The Australian Workers Union "New Steel Plan" last year estimated that for every 1000 tonnes of lost steel production, 60 jobs would be lost.
Australia imported around 2.7 million tonnes of steel from China, Japan, Thailand, South Korea, South Africa, Malaysia, Taiwan, Singapore, Vietnam and Indonesia.
It exported around 2.5 million tonnes of steel.
Source: Sydney Morning Herald
http://www.brisbanetimes.com.au/business/queensland-steel-locked-out-of-projects-20110715-1hhcc.html#ixzz1SnUDxRqA
Blueprint for success
An Eaglehawk initiative aims to put the corner shop back on the map.
If the Hub can pull off their plans to create an up-to-date equivalent of the good old-fashioned corner grocery store in their Eaglehawk premises, it may become a blueprint for similar enterprises across the state.
“We’re being viewed as a model of what this can become,” the Hub’s manager Gavin Fisher says.
“It is a risk to go there, but the plan is to become self-sustaining within a year.
“If this goes right, this can be a model that can be duplicated statewide.”
The Hub opened four years ago in an empty milkbar with a residence attached, redeveloped by Bendigo Access Employment with funding from community renewal schemes.
The idea was to create not only a milkbar so locals would not always have to go a couple of kilometres to Eaglehawk’s main street or into Long Gully, but also meeting rooms, a homework centre and a tool-equipped workshed.
With that round of funding now completed, and the centre needing to put itself into a solid – and sustainable – financial position, the plans are to create a social-enterprise store as an adjunct to their already established catering business.
“It has always been our philosophy to make a difference in the community you’re in,” Access Employment director Michael Langdon says.
“In this part of Eaglehawk there is a strong presence of public housing, with new houses being added all the time, so it makes sense to create a social enterprise arm of our existing catering business.
“We must stem the tide on the losses the centre is making, and while this model is not aimed
at making huge profits, we do want it to be built on strong business principles so that it can pay for itself.”
A couple of months ago, the Hub took over the cafe at the Myers Street end of St Andrews Avenue, in the BTEC building.
They moved their catering business from Bright Street, to the larger kitchen facilities in central Bendigo, which has also improved their ability to deliver to more addresses.
“I can now make five catering deliveries driving about 13 kilometres,” Mr Fisher says. “When I delivered from our Eaglehawk premises, it could take me about 75 kilometres to do the same run.”
From Access Employment’s point of view, the expansion into the city cafe has given them the opportunity to employ people with disabilities, which extends their core business of training in order to find placements in the workforce for their clients.
Right now, Mr Fisher is putting the finishing touches to his business plan for the social-trading enterprise they are banking on to lift the Hub out of a precarious financial situation and into self-sustaining profitability.
“Finding the sources of funding isn’t easy,” Mr Langdon says.
“Social enterprise is in its infancy in Australia, although it’s better developed in England, where governments are really getting behind the concept.
“The concept is you need to be sustainable, so you can be viable in the long-term.”
The Hub is being mentored by Godfrey Agius at Melbourne-based Social Traders, which was set up to encourage the development of commercially viable social enterprises in Australia.
Mr Fisher says he is “quietly confident” that it is all developing in the right direction, and that the store will be able to build on the catering side of their increasingly busy business.
“We hope to be able to make it a mini-mart that’s useful to the community, like the old-fashioned general store,” he says.
“We’re looking at setting up a veggie exchange too, because a lot of people grow vegetables in this area, and we also want to promote healthy eating.”
Access Employment already runs the PepperGreen Farm site at Thunder Street in North Bendigo, where the popularity of the veggie patch has inspired them to think about how they can market vegetables within the community.
Mr Fisher knows there is strong competition for the shopping dollar but he hopes to be able to offer the locals a good deal on their bread and milk, as well as the advantage of super-fresh vegetables and other products.
“Even in the milkbar, we noticed that when the multi-nationals were cutting the price of bread and milk it had an effect on our business, but we hope we will be able to do a deal with a local supplier so we are competitive,” he says.
He is working the figures to make sure his social trading enterprise has the best opportunity to succeed.
“You have a room being used for five or six hours a week, that isn’t economical,” he says.
He is also taking a close look at the use of the Men’s Shed alongside the Hub. With the new Long Gully shed open, Mr Fisher believes it would be more profitable for the Hub’s Men’s Shed to concentrate on repair work, so you could fix your lawnmower or other equipment there.
That’s a discussion currently under way: woodworker Gary Perry, hard at work this week making nesting boxes for regional parks, is keen to see the facility stay as it is.
“I don’t want to go over into Long Gully,” he says.
“This is good here. Gets me out of the house, and keeps me busy.”
Source: Bendigo Weekly
http://www.bendigoweekly.com.au/news/blueprint-for-success
Empowering Eaglehawk AGM - Thursday August 18th
Empowering Eaglehawk gives the people of Eaglehawk the power to make a good idea happen, to direct money to projects and activities that we choose and need, and to provide support and facilities for our young people, our families or the elderly.
Most of all, Empowering Eaglehawk means important decisions remain in our own hands. We decide where our money is spent in Eaglehawk and when.
The committee extends an open an invitation to this year's Annual General Meeting and Report to the Community. Featuring guest speaker, Geoff Harvey, of Ambulance Victoria, the event is happening at the Eaglehawk Town Hall on Thursday 18th Augustat 5.30pm for 6pm. Light refreshments provided.
RSVP no later than 5pm, Monday 15th August 2011 to Michael McKern. Phone: 5446 9202 or Email: admin@empoweringeaglehawk.org.au.
Housing Supply - Melbourne Good News, Sydney Bad News
As populations increase and buildings deteriorate, new stock is required to supply the community's ongoing requirements for shelter.
Providing access to the housing market through affordable dwellings is also an important function of the housing supply chain.
Individual housing markets supply new housing at different levels. The Melbourne and Sydney housing markets are stark examples of differences that can occur in housing supply levels.
New South Wales is Australia's most populous state and Sydney its most populous city. Latest ABS data reveals that New South Wales had a population at December 2010 of 7,272,200 with its capital Sydney recording 4,575,532 as at June 30 last year. The same ABS data set has Victoria's population at 5,585,600 and Melbourne at 4,077,036.
The construction of new homes in New South Wales and Victoria is however disproportionate to the comparative size of both the state and capital city populations.
Looking back over the last 20 years, it is clear to see that New South Wales house building levels have been in a long-term pattern of decline. In the ten years between 1990 and 2000, 455,276 new dwellings were built in New South Wales compared to the 348,803 built between 2000 and 2010.
Over the past five years the decline in new house building in New South Wales has been even more pronounced. Only 141,618 new dwellings were built between 2006 and 2010. During that time the number of households in New South Wales increased by 159,388 – nearly 20,000 more households than the number of new residences built.
By contrast Victorian dwelling construction has grown from strength to strength as indicated by the long-term pattern of activity. In the ten years between 1990 and 2000, 304,541 new dwellings were built in Victoria which increased markedly to 421,501 new dwellings between 2000 and 2010.
Over the past five years Victoria has built 211,381 dwellings with the number of households growing by 146,980. This represents an excess of nearly 65,000 new residences over new households.
Last year New South Wales built only 27,655 new 
dwellings. By contrast Victoria built a record 50,700 dwellings in 2010 approaching twice that produced by New South Wales.
The current significant difference in the level of dwelling construction between Victoria and New South Wales is set to continue, particularly in regard to the Sydney and Melbourne markets.
According to the ABS, only 20,756 dwellings were approved for building in Sydney between July 2010 and June 2011. Of this, only 7,534 were approvals for new houses. This compares with Melbourne that has approved 44,102 new dwellings for building over the same period of which 22,161 were houses.
The ABS projects that the number of Sydney households will grow by 27,012 over the year ending June 2011. Clearly the current level of new dwelling construction is insufficient to keep up with the growth in households. The number of Melbourne households is projected to grow by 29,114 over the year to June 2011. Melbourne's is clearly in a much better position than Sydney to cater for the accommodation needs of growing household numbers.
The level of housing supply in Melbourne offers the prospect of a more balanced housing market with moderated competition for housing providing the foundation for sustainable rental and house price growth. This will provide better general access to the market for tenants and prospective home buyers.
Melbourne is also providing increased diversity of accommodation options to its residents with continued strong home building in outer-urban areas, growth in suburban medium-density townhouses and a boom in inner-city apartments.
The chronic undersupply of new dwellings in Sydney will however only increase the already intense competition for housing in that city. This will continue to put upward pressure on rentals and house prices as tenants and prospective homeowners continue to struggle to gain a foothold in the housing market.
The current significant difference in the level of household growth and dwelling construction between the Sydney and Melbourne is illustrated by the considerable difference in median asking rentals for each city.
Sydney's rentals are nearly 33 percent more expensive than Melbourne, which is a clear indication of the comparatively high level of competition for accommodation in Sydney and the impact that has on housing costs.
Despite recent government action to temporarily cap and review infrastructure levies for housing developers, finding effective long-term remedies for Sydney's housing supply shortfall remains an extremely difficult problem.
As for Melbourne – well the news is a lot better.
Dr Andrew Wilson is Senior Economist for Fairfax-owned Australian Property Monitors.
Source: The Age
http://theage.domain.com.au/blogs/domain-property-monitor-blog/housing-supply--melbourne-good-news-sydney-bad-news-20110712-1hbt7.html
BlueScope boss gives long-term commitment to Australia
BlueScope Steel chief executive Paul O'Malley said he is "personally committed" to the steelmaker staying in Australia, after securing a steel industry assistance package of $300 million to deal with the Government's carbon tax.
Mr O'Malley told the Mercury the $300 million steel assistance package promised by the Government meant carbon would not be a problem for BlueScope for the next four years.
"It's a pragmatic solution to a complex problem," he said. "I think it materially mitigates our carbon tax liability for the next four years.
"I think I'm satisfied with where we've ended up. I don't think carbon will be an issue with us for the next four years."
About 60 per cent of the $300 million will go to BlueScope, which at 12 million tonnes a year is one of Australia's most intensive emitters.
The package was in part designed to stop steelmakers moving offshore.
But Mr O'Malley rejected the assumption taxpayers now have a stake in BlueScope's survival.
"We're paying for the support we get," he said.
"My personal commitment is to run a company that is a steel producer in Australia for the long term, that's my personal commitment. And I think it's very well supported by our board and the management."
Australian Workers Union Port Kembla Branch secretary Andy Gillespie said BlueScope might end up better off than before the carbon package.
"It seems on the surface ... that the steel industry has been taken care of," he said.
"I think they'll end up slightly in front, actually. If they do the calculations right, they will."
But Mr O'Malley said the package may not be enough to cover the rising costs of coal and other fuels used in steelmaking, but he was confident these costs could be reviewed in coming years.
Member for Cunningham Sharon Bird said she was confident climate change action had been taken in a way that protected jobs.
Source: Illawara Mercury
http://www.illawarramercury.com.au/news/local/news/general/bluescope-boss-gives-longterm-commitment-to-australia/2222458.aspx
Peabody, ArcelorMittal bid $5 bln for Macarthur
SYDNEY, July 11 (Reuters) - Peabody Energy (BTU.N) has teamed up with ArcelorMittal (ISPA.AS) to offer $5 billion for Australia's Macarthur Coal (MCC.AX), the world's biggest producer of pulverized coal, as demand for raw materials used in the making of steel intensifies.
The cash offer of A$15.50 a share represents a 40 percent premium to Monday's close and comes just a day after Australia unveiled a plan to tax carbon emissions from the nation's worst polluters -- some 500 companies, including coal miners.
It also comes amid a flurry of activity in takeovers involving Asia-Pacific companies, with at least four multibillion-dollar deals announced on Monday, and marks additional consolidation within the coal industry.
Macarthur -- named after U.S. General Douglas MacArthur -- made no recommendation on the proposal and said it would talk with Peabody and Arcelor on price and terms. China's Citic, which is an influential key shareholder, has not yet made its position clear.
Macarthur was the subject of a three-way bidding war in 2010 when it agreed to talk with Peabody, the highest bidder with an A$16 offer. But talks collapsed after Peabody cut its offer when the centre-left Labor government slapped coal and iron ore miners with a mining tax.
Analysts said there are important differences this time around.
"Now they have Arcelor, which is actually a shareholder and they've locked away some pre-bid acceptances for the first time. That's got to give them more comfort," said CLSA Asia Pacific Markets mining analyst Hayden Bairstow in Sydney.
Peabody, already one of Australia's larger coal miners, is pursuing an aggressive growth strategy outside the United States and has committed to doubling its Australian presence.
A Peabody spokesman said the company declined to comment beyond its press release.
The company's shares fell nearly 4 percent to $57.69 in mid-morning trading on the New York Stock Exchange.
ArcelorMittal, the world's largest steel company, meanwhile, is boosting its iron ore and metallurgical coal asset portfolio to ease the pain of rising fixed- and raw-material costs that have hit the entire steel industry.
Source: Reuters
http://www.reuters.com/article/2011/07/11/macarthur-idUSSGE76A00A20110711
Bendigo BMX stars aim high
A WORLD champion two years ago, Bendigo BMX star and mum Jaclyn Wilson is gearing up to chase gold at what will be her seventh world titles campaign.
Wilson and Bendigo BMX clubmates Brock Tuckerman and Matt White will put their cycling skills to the test against the world’s best in Copenhagen.
The world titles will run from July 27 to 31.
The national championship-winning feats by Wilson and Tuckerman meant they were joint recipients for April in the Bendigo Advertiser-WIN Television Sports Star of the Year award.
One of the biggest challenges the Bendigo BMX aces will face in Europe is adjusting from winter to summer.
“The build-up has been difficult,” Wilson said after doing a few laps on the Eaglehawk track in Victoria Street.
“The cold weather makes it tough for training, and we have had no racing since the Aussie titles in Cairns.
“They are challenges you have to deal with as best you can.”
Not only has Wilson spent as much time as possible on the track, but she has racked up the hours training on the road, on the rollers at home, in the gym.
Away from cycling, she is a hairdresser at Salon Hype and is a mother of two boys.
The sport has grown dramatically since Wilson started BMX racing when she was four.
“BMX is now one of the fastest- growing sports in Australia.
“It’s great to see people of all ages competing and watching.”
At her latest national titles, Wilson won the 17-plus years 20-inch final, and the 31-34 years cruiser contest.
A hectic program of racing in Copenhagen will include three monos (qualifying heats) as riders strive to reach the qualifying, semis and final.
White’s class has drawn 103 starters for the 13-years division.
The year 7 student at Kangaroo Flat’s Crusoe College was third at this year’s national titles.
“To win Australia’s number three plate is the biggest high so far,” White said of his BMX campaign, which began when he was six.
He raced at the 2009 world titles in Adelaide and will be doing all he can to make the final on the 345m track in Denmark.
“Every race will be tough. There are 16 spots on the gate, so the fields are going to be big in all the monos,” White said of tackling the heats.
Tuckerman powered to victory in the 25-29 years final at the 2011 Australian BMX championships in Cairns.
The Strathdale cycling star capped his first national titles final by winning gold.
Since then he has put in plenty of time training and raising money for his third world titles campaign as well as working at Bendigo Cycles.
Tuckerman’s biggest fans are his three daughters and fiancee Cassandra Patten. The couple will marry next March.
Source: Bendigo Advertiser
http://www.bendigoadvertiser.com.au/news/local/sport/bmx/bendigo-bmx-stars-aim-high/2226019.aspx
Key points of the carbon price package
- Carbon price to start on July 1, 2012, starting at $23 a tonne rising at 2.5 per cent a year.
- It will be paid by about 500 biggest polluters.
- It will be replaced by an emissions trading scheme from July 1, 2015.
- Price ceiling and floor to apply when trading starts.