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2 | BusinessTimes Greater Dandenong | November 2010

CONTENTS

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DISCLAIMER: Information in BusinessTimes contains general advice only. No article or column has been prepared taking into account any individual reader’s financial situation, investment objectives or particular needs. Readers should personally consult professionals for advice on any matter, including investment, health and the law. While all care is taken, BusinessTimes accepts no responsibility for errors or omissions in the published material. Views expressed are not necessarily those of BusinessTimes Pty Ltd. All content is copyright.

Departments ColumnsNetworking 3News 4Busy Bites 6Infrastructure 8Contributions 18Business Directory 23

Managing: Hamish Petrie 10Markets: Richard Campbell 11Health: Mike Ellis 20Motoring: Ewen Kennedy 22

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Cover: Brothers Matthew and Stewart Rees are forging high tech export links, selling their .solar powered CCTV equipment to Libya.

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Features

BusinessTimes | 3November 2010 | Greater Dandenong

NETWORKING

VICTORIAN Employers Chamber of Commerce and Industry fast forwarding networking event at the Chiffley Doveton Hotel on November 18. 1. Edy Wilfling, Business Development Consultant, Pragmatic Training, Jean-Pierre Armour, of Choice Training Solutions, Collingwood, Trish Kelty, of Avocare, Dandenong, and Jim Wagstaff, of Clinical Training Solutions. 2. Curt Tebbutt, of Effectus Business Coaching, John Meddings, Advanced Forklift Licences and Training, and Farry Teychenne, of Corbanque Facilite Internationale. 3. Margaret Harrison, of Business Times, and Gary Durbin, south-east Business Decvelopment Manager of VECCI. 4. Rachel Wood, of Avenue Press, with John Meddings, of Advanced Forklifts.

1

2

3 4

VECCIfast forwarding

BELOW: South-East Business Networks Women in Business Breakfast at Punt Hill Apartments, Dandenong. 1. Olivia Ferres, Officeway Office National, Dandenong, Cora Zeilinger, area manager (Vic and ACT) of DA Information Services and Dr Vesna Grubacevic PhD, a performance transformation expert.

FRANKSTON Business Chamber’s networking meeting at Le Mans Go Kart track, Dandenong, on November 16. 1. Shane Davies, Melbourne IT, with Frankston real estate doyen Geoff Crowder, of Nicols Crowder, Carrum Downs. 2. David Ingram,

Territory Sales manager (Victoria) of Constellation Hotels, owners of Chiffley Doveton, with Sharon Sayers, of Ardent Owners Corp Management, and Tushar Raniga, state sales manager (Vic. Tas and WA) for Constellation Hotels.

Business chamber goes go karting

1 2


NEWS

NOMINATIONS for the 2011 Greater Dandenong Australia Day Awards close on November 25.The awards recognise the exceptional contribution, hard work and determination of citizens who make a positive difference to their community.Award categories include Young Citizen of the Year (aged 25 years and under), Citizen of the Year (aged 26 plus), Good Neighbour of the Year and Non-Resident of the Year.Winners will be decided by a community panel.Nomination forms are avail-able by calling 9239 5134. Forms are also available from Council’s website at www.greaterdandenong.com, Spring-vale and Dandenong libraries and council’s customer service centres.

Citizen awards

THE $20 million transformation of Lonsdale Street into an attractive green boulevard is nearing completion.

VicUrban’s Development Director, Michael King, said Lonsdale Street is fast becoming a place that Dandenong can be proud of.

“Almost 80 per cent of the works to transform Lonsdale St into one of Melbourne’s great boulevards are complete, with a further 10 per cent due for completion by the end of

this year. The remaining works on the western side, between Walker and Foster Sts, will be completed in early 2011.

“Shoppers can now enjoy granite paved and wider footpaths, significantly improved lighting, bicycle stands between Clow and Langhorne streets and more than 100 Pin Oak trees, which have been planted along Lonsdale Street and will swell to 220 by Christmas and 265 on completion,” Mr King said.

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Getting that Boulevard feel: Lonsdale St, Dandenong.


GREATER Dandenong Council is supporting a planning scheme amendment (C102) to allow a Homemaker Centre to be built on the south-east corner of Chel-tenham and Springvale Rds.A government appointed panel re-quested by council recommended the Silverton Group development, but with some changes to the proposed planning amendment.Silverton Group dropped a late attempt to include a Woolworth’sOxygen store which would have added 30,000 sq m. of trade sup-plies retail space to the develop-ment. Oxygen stores are a joint venture between Woolworths and Lowes Companies Incorporated, the second largest home improve-ment retailer in the world. Thirty $13 million stores are planned in Victoria within three to five years.

Homemaker plans

AUSTRALIAN company Climate Friendly has launched a carbon offset scheme that includes promoting emission reduction projects at home and abroad.

Climate Friendly launched SpectrumCredit at Carbon Expo Australasia in early October, describing it as a world first. SpectrumCredit allows anyone to offset their carbon footprint with a combination of clean energy technolo-gies from five best-practice projects sourced from five countries, with purchases as small as a single tonne of C02 equivalent.

Climate Friendly CEO Freddy Sharpe said SpectrumCredit made it easy to support a biomass project in Thailand, a fuel-switching project in Brazil, an energy efficiency initiative in Cambodia, landfill gas recovery in China and renewable energy in India – all at the same time.

He added that from 2003 to 2009 the global voluntary market grew at 58 per cent compound annually making it one of the fastest

‘Friendly’ carbon offsetgrowing industries in the world.

“Our government is stagnating on plans for a Carbon Pollution Reduction Scheme (CPRS) and cannot agree on a carbon price, meanwhile climate change is happening today,” Sharpe said. “The truth is that the market is right out in front of government.

“While some people are still debating whether human created climate change is real, a rapidly growing number of businesses and individuals have already worked out their carbon footprint and started making reductions and (buying) offsets.

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“Our clients want to support a range of technologies that collectively have the potential to address global warming,” said Sharpe.

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6 | BusinessTimes

BUSY bites

Greater Dandenong | November 2010

Call for duty cutsTHE Victorian pre-election Budget update showed that income from stamp duty already exceeded the budgeted amount, confirming that Victorian home buyers are paying too much in state taxes, according to the Real Estate Insitute of Victoria.Thee update showed an increase in land transfer duty of $149 million in 2010–11.REIV CEO Enzo Raimondo said that the state had collected on average, $294 million a year over the past seven years. “Ten years ago stamp duty on a median-priced house was $9760 or 4.15 per cent of purchase price; now it’s $28,970 or 5.13 per cent of purchase price.Raimondo asked why Victorians must pay some of the highest stamp duty rates in Australia.

Work recognitionTWO Greater Dandenong City Council development services officers, H. Wyszogrodska and B Lyon, have received letters of recognition from the council for 30 years of service.Crs John Kelly and Roz Blades received recognition and ap-preciation certificates for 15 years service to ratepayers.Certificates for 10 years’ representation were sent to Crs Angela Long, Maria Sampey, Yvonne Herring, Youhorn Chea, Peter Brown and Paul Donovan.

PEOPLE seeking home finance are increas-ingly turning to smaller lenders because they can often secure a better deal, according to mortgage broker Loan Market.Loan Market boss Dean Rushton said loan lodgements with the major banks had fallen by eight per cent over the past three months.Mr Rushton said currently 60 per cent of loan applications made through Loan Market brokers were with the big four banks, but there had been a significant fall in loan traffic to the majors.“It is clear that in a climate of rising interest rates that prospective mortgage holders are looking around for the best deal and they are finding competitive offers from smaller lenders.He said second tier lenders were gradually gaining ground as post GST caution abated and borrowers drifted away from known brands.“While interest rates are likely to keep rising, people can still achieve significant annual

Smaller lenders gain

MOST Australians would prefer that the federal government never introduce a price on carbon.

In response to the statement: The Government should introduce a price on carbon, 53 per cent of Australians voted never.

The findings were revealed in a recent survey of over 1100 Australians conducted by Youi Insurance between September and November, 2010.

The nation also appears divided on when a carbon price should be introduced with 27 per cent of respondents saying the government should introduce a price on carbon this year, 10 per cent saying next year and another 10 per

cent wanting it put off for five years. Brendon Dyer from Youi Insurance said it

appeared respondents felt that introducing a price on carbon would lead to an increase in their day-to-day living expenses.

“There is a fear of the unknown. The majority of respondents believe that introducing a price on carbon will lead to an increase in such basics as fuel and electricity,” he said.

Youi Insurance is a national insurer that rewards its customers with cheaper premiums if they use their cars less. The average mid-sized sedan emits 3.6 tonnes of carbon each year, based on travelling 15,000 km annually.

Most Aussies say ‘no’ to carbon price

savings by shopping around and getting a better deal on a mortgage with a much more competitive package,” he said.

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Consumers twitchy

AUSTRALIA is one of the least tolerant nations when it comes to receiving bad service, second only to Mexico, with almost nine in 10 Australians having ceased doing business with a company following poor service.

The findings were released 14 October in the American Express Global Customer Service Barometer, a survey conducted in Australia and 11 other countries, exploring public attitudes and preferences towards customer service.

The barometer reveals that generally most Australians (48 per cent) will allow two poor customer service experiences before blacklisting a company. A less forgiving 28 per cent are only willing to excuse one service lapse.

The good news for businesses is that customers are more forgiving of poor service if they have generally experienced good service with the company over time. Almost nine in 10 consumers (86 per cent) report they’re willing to give a company a second chance after a bad experience if they’ve historically experienced great customer service with that company.

“These findings demonstrate the importance of building relationships with customers, rather than approaching service as a transaction”, says Christine Wakefield, Vice President of American Express World Service in Australia.

“Lapses in service standards happen, but if customers realise these incidents are the exception and not the rule, they will be more understanding.

When bad service is received, the barometer reveals that Australians are unlikely to provide

direct feedback to the business. In fact, compared to the other nations surveyed, Australians are among those who are most unlikely to speak to a company supervisor about the incident and even less inclined to write a letter or an email to the company.

Rather, people are more likely to complain about the incident among their own social circle, speak negatively about the company if asked, or recommend their friends, colleagues or family avoid the establishment.

“Sadly Australians have found complaining directly to organisations difficult and frustrating. Not only is it almost impossible to find out who to complain to, when Australians do complain often nothing is done or in some extreme cases, retribution is meted out by staff who have not been adequately trained in the art of good service”, Brett Whitford, founder and Executive Director of the Customer Service Institute of Australia.

More than half of Australian consumers expect something in return after a poor customer experience, yet interestingly financial compensation rated second to an apology. American Express’ tips for businesses to make amends for poor service: 1. Acknowledge the poor service experience by providing an apology and the assurance it won’t be repeated. Ideally the apology should be given by the person at fault, however can also be given by a manager or person in-charge. 2. Resolve the issue speedily, effectively and courteously. The consumer has already been incon-venienced, so the faster they can leave feeling the matter has been resolved, the better. 3. Identify factors that contributed to the poor service experience. Was it a knowledge gap, a process failure or a systems fault? Once identified, faults can be more easily rectified.

• See Management: Customer delight – Page 10

Bad service … we’re outta there

‘Sadly Australians have found complaining directly to organisations difficult and frustrating.’

Quick growersTOTAL revenue ofAustralia’s 100 fastest-growing companies leapt 47 per cent this year to a record $3.63 billion, according to BRW.Of these, 82 per cent say they benefited from the financial crisis. BRW says that more than one-third of Fast 100 companies were founded within the past five years.Topping this year’s list is ASX-listed energy retailer Australian Power & GasThere are 70 newcom-ers to the Fast 100 – nine of them in the Top 10.

Consumer sentiment fell in November, but is proving steadfast against the latest Reserve Bank interest rate rise, a survey shows. Westpac-Melbourne Insti-tute consumer sentiment index fell by a seasonally-adjusted 5.3 per cent to 110.7 points during the month, from 118.3 points in the prior correspond-ing period. Westpac chief economist Bill Evans said he had expected a large fall in the index after the unexpected 25 basis point move in the official cash rate, along with Common-wealth Bank of Australia’s 45 basis point hike in its variable mortgage rate.

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8 | BusinessTimes Greater Dandenong| November 2010

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FRANKSTON Council claims a state government discussion paper on future freight movements in Melbourne ignores the Port of Hastings.

Council says that because Hastings has been commissioned as Melbourne’s second port it should be included in any metropolitan freight planning.

Frankston described the absence of any mention of Hastings as “a glaring omission that reduces the credibility of the entire document”.

“It is critical the road and rail infrastructure to the port be provided urgently along Western Port Highway or Peninsula Link alignment.”

Council added that any further use of the Frankston line for freight would not be acceptable.

The council is offering in-principle support for development of a ‘hybrid’ network using both rail and road for metropolitan freight movements.

However, while supporting a rail link from Hastings, the council doesn’t want increased freight rolling through Frankston from the existing Frankston-Stony Point line.

The South East Melbourne Councils group also opposes any significant increase in freight movement along the line.

The Victorian Freight Futures document concedes that Stony Point line is inadequate for long-term rail movements to the Port of Hastings

The Shaping Melbourne’s Freight Future discussion paper released by the government in April acknowledges that planning for freight in the metropolitan area has reached a critical stage.

Melbourne Intermodal System Study (2008) predicted freight throughput from the Port of Melbourne would increase from just over two million Twenty Foot Equivalents (TEU’s – a standard sized shipping container, which is used for measuring and comparing container volumes) to eight million TEU’s by 2035.

“While the Port of Hastings may not be included in the area defined as the metropolitan region, it is located just outside … and will create significant freight volumes once it becomes fully operational,”

Freight planning ignores City reportsGREATER Dandenong’s $50 million capital works program is al-lowing “significant progress” on key developments, says mayor Cr Jim Memeti in his 2010 annual report.The works budget includes $19.7 million for major projects and $8.4 million for asset renewal.Major works include Dandenong Market redevelopment, the $7.7 million Springvale Service for Children, additional parking in Springvale business district, redevelopment of Shepley Oval pavilion, a new pavilion at Spring-vale Reserve and the $17.7 million “More than just a Pool” project at Noble Park, which includes a $10 million council contribution.Cr Memeti praises council’s partner VicUrban on the mas-sive urban renewal program in central Dandenong.

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Port of Hastings Lending up (& down)HOME lending rose in Septem-ber but the latest interest rate rise is likely to flatten demand, according to economists.Housing finance sign-ups for owner-occupied housing were up 1.3 per cent in September, season-ally adjusted, to 48,333, the Aus-tralian Bureau of Statistics said.But the number of loans was down 25 per cent from the previous September and down 21 per cent with the average of 2009.The median market forecast was for a 1.2 per cent rise in housing finance commitments in the month.Total housing finance by value rose one per cent in August, season-ally adjusted, to $20.386 billion.The value of all housing loans, including alterations and additions and loans to investors, rose 1.7 per cent in September but was down 14 per cent over the year.

Green wasteREATER Dandenong Council has extended its contract with Natural Recovery Systems for collection and disposal of green organic waste.The contract over 30 months from October 1 is for $2,721,520, an increase of $328,000 over the previous 30 months.The contract has been ap-proved by Local Government Minister Richard Wynne.Moved by Cr John Kelly and seconded by Cr Angela Long

according to council’s response to the government.“A rail link from the Port of Hastings to an

appropriate location such as the proposed (freight) terminal in the south east metropolitan region of Melbourne must be planned.”

Frankston supported the current VicRoads planning study investigating a proposal to develop Western Port Highway to freeway standard between South Gippsland Hwy, Lynbrook and Cranbourne-Frankston Rd, Langwarrin.In a “message” that prefaced the discussion paper document that sparked Frankston Council’s reaction, Road and Ports Minister Tim Pallas and Public Transport MinisterMar-tin Pakula predict Melbourne’s population will pass five million by 2030 and seven million by 2050. A submission recently made to the Port of Melbourne Corporation (PoMC) by infrastruc-ture and stevedoring company Asciano argues that it would be cheaper to upgrade the Port of Geelong than spending $11 billion at Western

Port. Shipping Australia and Westgate Ports have also put forward proposals which could vastly increase the throughput of containers at the Port of Melbourne, further easing pressure on the need to develop the Port of Hastings.

Westgate Ports is owned by Salta Properties, the company that owns land at Lyndhurst which it is promoting for an inland port. If developed, the three inland ports proposed in the government’s discussion paper would reduce the number of truck movements to and from the Port of Melbourne using the government’s preferred “intermodal” (road and rail) method of transport.

The discussion paper outlines a scenario in 2035 in which the Port of Melbourne is “nearing capacity” handling eight million TEUs a year while “a new container terminal has recently been commissioned at the Port of Hastings to provide the next major tranche of capacity for Victoria’s international trade...”

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*Hamish Petrie had a 37-year corporate career including 29 years with Alcoa Inc. His last position was as VP–People and Communication for the global Alcoa corporation based in New York, NY. He can be contacted at [email protected] or on 0404 345 103.

The first step towards customer delight is having a process to measure just how pleased, or not, your customers are with your products or services. While this sounds simple, very few businesses have any processes to talk to their customers and gather feedback about their experience with your business. Many retail businesses don’t even have basic information on customers to help them understand why people are using their business. Today, while more people are accustomed to sharing some personal information, including email addresses, this is a complex issue that needs to be handled sensitively if your customers are going to support sharing of any personal information. If you do have a customer list, there are several alternatives that can be used to gather their feedback, but even this is often difficult to stimulate.

An ideal way to gather feedback is to get the owner/manager personally involved in collecting the information. Unfortunately, many owner/managers are so involved IN the business that they don’t take the time to work ON the business. Allocating a block of time, like an hour a week, to interview customers briefly as they leave your premises, will give you valuable opinions that can be used to improve your products/services.

The next step is to eliminate the customer dissatisfaction. A dissatisfied customer can do enormous damage to your business as they are likely to tell as many of their friends as possible. Remember “misery loves friends” and stories of bad experiences can be retold over a coffee for many weeks.

There are many measures of potential dissatisfaction and these should be discussed and identified for your business. Obviously, the quality to your product/service is important, but in many businesses, time is increasingly a very important source of issue when customers are prepared to go to a competitor who can meet their time constraints.

Once you have reduced or eliminated

Creating delightfor your customersEvery business knows how important their customers are to their business success, but what business processes do you have to take you down the path towards creating customer delight?

‘Remember, ‘misery loves friends’ and

stories of bad experiences can be

retold over coffee for many weeks.’

Hamish Petrie*business Consultant

dissatisfaction, then you can focus on meeting customer expectations. This means that you are able to supply the right product/service with the right quality at the right price within the right timeframe. This is a moving target as yesterday’s standards can quickly be superseded by new higher expec-tations as your competitors and technology change the rules of business. Again, this is an area where the owner/manager should take time out to study what is happening in the competitive landscape, particularly if your business has a fashion dimension. This can be done by researching competitors’ offerings, watching related businesses and dreaming about how to apply ideas and technologies to your business. In this way, you can sustain your business by being able to help to shape customer expectations for future products and services.

Small business owners are usually strongly identified with their business and it is often difficult to separate the reputation of the business from the reputation of the owner. In these cases, it is critical to ensure that any employees of the business are completely in harmony with the owner so that they can act as an extension of the owner. This personali-sation of the relationship between the owner, the business and the employees can really help to create a consistent and predictable

interface with customers. This usually results in a high level of customer satisfaction and repeat business. Once you have mastered meeting expectations, then you are ready to create customer delight. This is the fun part when you understand your customers so well that you can predict what will put a smile on their faces. One technique is to do something completely unexpected and significant enough to stimulate the customer to go out and tell their friends about it. Recently, a new boutique grocer opened in our neighbourhood. After my wife had shopped there a couple of times, the owner gave her a bunch of flowers when she was leaving the premises. She was overwhelmed and took great pleasure in retelling the story many times over the next few weeks. If the owner did this 200 times, then he quickly developed 200 ambassadors in the neighbourhood for a total marketing cost of around $1000. I wasn’t surprised later to see that they had been voted as Melbourne’s best new food store in “the 2011 foodie’s guide to Melbourne”. Doing a little extra is a great technique to create delight, and this need not create a significant cost for the business.

But why is customer delight so important? Once you have business processes that can create customer delight then you have the highest probability that your customers will remain loyal to you, give you all of their business and tell you if they have any concerns about your business. This will result in your greatest chance of building and sustaining a valuable business and lifestyle. Action Planning Questions: 1. Do you have a list of your regular customers and how do you keep it up to date? 2. Do you have an active process to gather feedback from your customers including personal discussion with your owner/manager?3. What are your main potential sources of customer dissatisfaction, and how do you measure them? 4. How do you monitor competitor offerings so that you can ensure that you retain your existing customers? 5. Are your employees empowered to do something extra to create customer delight?


maRKETS

Some bank economists are arguing that the Australian dollar is 30 per cent over-valued against the US dollar on an historical basis with a few expecting it to retrace to more “normal” levels. Nothing is impossible, but post the GFC the word “normal” doesn’t seem to apply.

The US has just posted a $1.3 trillion budgetary deficit and owes $13 trillion - about the same as its annual GDP. About 10 million people are on unemployment benefits and the White House is about to stimulate the economy again by creating billions more dollars at the stroke of a keyboard.

It gets worse: currency traders and bankers world-wide will watch with alarm as Republicans sweep into Congress owing their seats to the Tea Party movement. It is one thing to shrink the size of government, but when men wearing wigs demand a 1786 style economy, the US dollar will have even fewer friends.

This almost ensures that the Australian dollar holds around parity or even shoots higher. The impact on our Top 50 will vary widely but whether corporate operations are diversified across the globe or focused on the US, the impact is considerable. Industrials like Ansell, Cochlear, Brambles, Computer-share, Boral, and Westfield lack the compen-

Our dollar: is it too much of a good thing?Like double cream a strong currency can be too much of a good thing. While importers are now smiling, exporters are gritting their teeth wondering whether the Australian dollar’s strength is temporary, a step change or, perhaps a bit of both.

sating price rises of copper, coal, iron ore and gold enjoyed by the likes of BHP, Rio and Newcrest.

While it may be the perfect moment to invest in cheaper US assets, CEO’s are likely to be cautious. Many Aussie companies over-paid for US businesses and are now caught with high US labour costs, but weak domestic demand. This weakness is likely to linger for the best part of a decade.

The global US economy is a different matter. Many US corporations continue to

expand their reach and now get the free kick from the falling $US. Apple is now within months of surpassing Exxon’s $330 billion value as its 25 per cent after tax margins stun investors. And Apple is not alone. East coast bankers may have blown up the US financial system, but west coast geeks understand the value of the net. It is no surprise that high profits are flowing to the likes of Google, Amazon, Oracle and E Bay. All beat recent analyst estimates.

This leaves Australian investors with some widely different choices. Our national metals and coal strategy is still a winner but the currency translation is capping returns. Some property assets in the US could be attractive for high yield, but before assuming that the $A will fall back and produce the best of all possible returns, it is worth pondering the disengagement of the Apples from the core US economy. Apple’s design is from San Francisco, but the assembly is largely in China and will never come back when wages there are $100 a month.

So this is one strategy: great design, low costs, global marketing and price setting. Ours relies on fundamental demand, but shifting currencies and wide price variability. But the second strategy is not all bad. Our region has five economies with populations three or more times greater than our own and some of these like India and Indonesia are still at early stages of western style demand. In mobiles, office towers and kitchens that is a lot of copper, gold, silver and nickel - not to mention all those metals with unpronounceable names.

*Richard Campbell is Executive Director of

Peninsula Capital Management, Tel. 9642 0545,

350 Collins St, Melbourne, 3000.

email: [email protected]

1433

Richard Campbell*stock Analyst

12 | BusinessTimes

COVER STORY


WORDS/IMAGES: KEITH PLATT

IT might seem a bit farfetched, but Australian farmers are prepared to pay thousands of dollars to literally watch their crops grow.

And if watching grass grow isn’t your cup of tea the same amount of money can also be spent sitting back watching a building take shape or for watching waves on remote beaches or birds visiting wetlands.

Brothers Matthew and Stewart Rees, of Aussie-Net Solutions Online (ANSO), are combining digital technology and solar power in a Springvale factory to provide farmers and developers with the opportunity to monitor their products in real time from home or the office.

“One farmer in New South Wales checks out water levels in his dams during breakfast instead of spending half a day driving round his property,” Stewart Rees says while accessing pictures on his laptop

Save time and money watching the grass growscreen beamed from a camera sitting in the middle of a wheat field hundreds of kilometres away.

Also in shot is a thermometer and rain gauge.

Watching grass grow at $6000 a pop might seem a bit extravagant, but not when when it has cost $100,000 to sow and the final harvested product is worth $2 million.

“They can tell if more fertiliser is needed or how much rain is going to affect the growing rate,” Stewart continues. “Being able to have this information at a farmer’s fingertips is really very useful and can save a lot of money.”

The big difference between camera system put together by the Rees brothers and thousands of surveillance cameras already installed in streets, shops and factories is that they operate in remote outdoor locations on solar power with pictures being transmitted through the 3G network.

COVER STORY


WORDS/IMAGES: KEITH PLATT

IT might seem a bit farfetched, but Australian farmers are prepared to pay thousands of dollars to literally watch their crops grow.

And if watching grass grow isn’t your cup of tea the same amount of money can also be spent sitting back watching a building take shape or for watching waves on remote beaches or birds visiting wetlands.

Brothers Matthew and Stewart Rees, of Aussie-Net Solutions Online (ANSO), are combining digital technology and solar power in a Springvale factory to provide farmers and developers with the opportunity to monitor their products in real time from home or the office.

“One farmer in New South Wales checks out water levels in his dams during breakfast instead of spending half a day driving round his property,” Stewart Rees says while accessing pictures on his laptop

Save time and money watching the grass growscreen beamed from a camera sitting in the middle of a wheat field hundreds of kilometres away.

Also in shot is a thermometer and rain gauge.

Watching grass grow at $6000 a pop might seem a bit extravagant, but not when when it has cost $100,000 to sow and the final harvested product is worth $2 million.

“They can tell if more fertiliser is needed or how much rain is going to affect the growing rate,” Stewart continues. “Being able to have this information at a farmer’s fingertips is really very useful and can save a lot of money.”

The big difference between camera system put together by the Rees brothers and thousands of surveillance cameras already installed in streets, shops and factories is that they operate in remote outdoor locations on solar power with pictures being transmitted through the 3G network.

COVER STORY

14 | BusinessTimes

COVER STORYCOVER STORY

SENDING cameras and batteries in foam-filled protective cases, weighing and paying for the freight sounds easy enough but, according the Pack & Send’s manager Godfrey Stewart, above, this is no straightforward job, especially to a country like LIbya.

The batteries contain acid and are classified as dangerous goods, and face strict guidelines when being sent by air.

Stewart, who is accredited to authorise unusual items and make sure they comply with the law, disconnected the battery terminals so they would pass scrutiny by customs and security agencies.

Computers and the internet allow

him to monitor the progress of the pallets carrying the cameras as they travel for about five days between Australia and Libya.

“I check every morning where specific parcels are and, if there’s a hold up, make inquiries with the relevant authorities,” Stewart says.

The 800 kilogram load is big, but nowhere near the largest consignment he has handled.

That record probably goes to the four tonnes of brown coal he was asked to ship to China for client based in Geelong who plans to make briquettes for the Chinese.

“They wanted the coal to make checks

of its suitability and water content,” Stewart says.

However the Rees brothers cameras, because of their destination to country that is only now beginning to receive international trade attention on a big scale, are among his most complicated-to-arrange consignments.

“It was really a team effort,” he says. “They wanted insurance so I contacted a broker here in Dandenong who was able to get cover.

“The work being done by these two brothers and our ability to arrange the export is good for the economy and for Dandenong.”

and the United States.Back home, cameras are being installed

atop 80 metre high masts on a wind farm being established in eastern Victoria.

Stewart says the technology being used in their camera systems “is not earth shattering”.

“But we’re putting it together in a package with some little design features that enable the system to operate in the elements. They’re made with a focus on being tough.”

“They’re designed for the heat, and that was a big selling point for Libya,” Matthew adds.

The cameras could also be built to store images rather then transmitting through the 3G network.

The brothers see themselves as

“Dandenong boys through and through” and try to buy supplies and equipment from within the region, even though most components are made overseas.

Stewart says they have been “geeks from very small ages”, although each worked in sales or marketing before getting together and forming a partnership about seven years ago.

Their sales and marketing have been mainstays for their core web design business, although they would be the first to admit that there’s no foolproof way of trying to guess the next twist or opportunity that will be presented by the internet or digital technology.

However being ready and open to suggestion led them to the Libyans, or was it the other way around?

The Libyan connection

The cameras are fixed, so that changes are monitored on a frame-by-frame basis, grass grows, changes colour, bends in the winds; a bare piece of ground graphically changes as workers and machines erect buildings in a time lapse sequence recorded on computer.

While the camera is fixed, the computer can be used to zoom in and enhance any section of the frame to check details.

The cameras have built their own momentum for sales among the agribusi-ness community, but the latest contract secured by the Rees brothers has raised a few eyebrows - selling 22 of the networked cameras to a customer in Libya.

They say the first contact was made through their website about four months ago and this month the consignment was being packaged by Pack & Send in Dandenong to be airfreighted to Tripoli.

“We built the cameras mainly with Australian conditions in mind but we’re finding there’s a demand globally,” Matthew says.

“We’re not targeting or aiming to compete in the security market - our cameras are not made to work at night without lights.”

Stewart believes the cameras bound for Libya will be used to monitor some of the $50 billion worth of development and infrastructure projects about to get underway in Libya.

“We’ve got cameras in five states here, but this our biggest overseas system.”

This could soon change, with arrange-ments being made to establish links with agents and distributors in South America


BusinessTimes | 15

THE appearance of Dandenong is undergoing unprecedented change as VicUrban’s grand design for renewal of the city centre takes shape.

The new Stockmans Bridge is carrying traffic into the area and Grocon’s cranes tower over the construction site of an eight-storey commercial office building at the corner of Walker and Thomas Sts.

Four state government departments have already signed up as tenants - human services, justice, education and early childhood development, and planning and community development - in the building which was started in November 2009 and is expected to be completed in November 2011.

Opposite the construction site and dwarfed by the building appearing above the safety hoardings is the Cornerstone Contact Centre in an old cream brick church.

The design of the two buildings could not be more different, but they have a bond that goes beyond mere bricks and mortar.

Grocon has adopted Cornerstone as its “charity partner”, offering hope and help to an institution whose clientele live in a world that in many cases bound to that of the government bureaucrats who will inhabit the new offices.

Since May 1992 Cornerstone has

Cranes signal hope and charitydaily fed and provided a safe haven for people marginalised by circumstances, Dandenong’s fringe dwellers. It is also a venue for games and meetings.

Grocon has put up its hand to help out, and Pastor Don Cameron says a new fridge for Cornerstone’s kitchen might be first on the list. The church’s car park might also get sealed.

Unfortunately, while Grocon’s building is part of VicUrban’s grand plan and likely to be landmark for many years to come, Cornerstone’s future is more uncertain.

The old church is owned by the Rado which allows Cornerstone to occupy and operate from the building.

However, there are no guarantees and Mr Cameron shrugs when asked how long the charity can stay.

But he does not let any uncertainty over tenancy cloud Cornerstone’s activities: providing safety for people at risk on the streets; allowing people at risk, especially the mentally ill, a place where they can be safe from street violence, intimidation, stigma and ridicule; and, to eventually assist these people to rejoin society through employment and/or providing adequate coping skills.

Grocon’s building will incorporate three basements and a part fourth basement for car parking. It is registered for five-star green star office design and as-built ratings

(version 3); registration for five-star green star Interiors (version 1.1) is to soon follow. Grocon is also targeting a 4.5-star NABERS energy rating for the base building.

Tara McDonald, Grocon’s stakeholder liaison officer, lists the company’s four core values as safety, sustainability, community and innovation.

“Grocon’s community core value is extremely important to the company,” she said. :It believes that it is its responsibility to give back to the societies in which it lives and works.

“This year Grocon completed the Common Ground Elizabeth St project in Melbourne, which will provide housing for chronically homeless people and which Grocon has worked on at cost, achieving savings of more than $8 million.

“Work has recently started on similar projects in Sydney and Brisbane. As well, Grocon has a community employment program, offering jobs to young people from disadvantaged backgrounds through partnerships with Whitelion and the Brotherhood of St Laurence.

“As part of Grocon’s commitment to its community core value, it selects a charity partner to support for the duration of each project. Grocon has selected Cornerstone as its charity partner for the Government Services Office, Dandenong.”

Cornerstone Contact centre’s Pastor Don Cameron and Grocon project manager Andrew Poulton.

November 2010 | Greater Dandenong

PROJECTS


laW

Debt recovery

MANY businesses maintain tight controls on debtors and rarely have bad debts. In some instances, a debt is not paid because it is disputed. Businesses which have only the very occasional bad debt or have a debt which is disputed should retain a solicitor to assist them.

A solicitor, rather than a debt collection agency, will be able to guide the business through the procedures and costs associated with the court process. Those costs can be significant, particularly when the court proceeding that has been taken for the recovery of the debt is defended.

Care needs to be taken to ensure the costs are not disproportionate to the amount in dispute. A solicitor experienced with the court process will be able to advise and guide the business through the complexities and costs associated with the court process.

What about those businesses which have a number of bad debts and require an ongoing debt recovery service? Should those businesses engage a debt recovery agency or should they engage a solicitor?

The starting point to answer this question is to consider the nature of the usual debts the business incurs. Are the debts small consumer debts? For example, a veterinary surgery may have a dozen pet owners a month who fail to pay accounts ranging between $100 and $400. By contrast, a wholesaler of hardware materials may only have commercial customers who have completed credit applications but each month, has a number of customers fail to pay within terms: the amounts may range between $1000 and $10,000 or more.

The veterinary surgery with the number of small consumer debts, may decide to subscribe to Veda Advantage and list its debtors as defaulting debtors. Listing a bad debtor will alert other creditors who conduct credit searches that the individual has an unpaid debt and banks and other financial institutions will not finalise loans to individuals who have such adverse credit listings. This often results in the debtor belatedly paying the outstanding debt to clear his/her poor credit rating.

It is unlikely that the veterinary surgery would want to initiate legal action for the recovery of its outstanding debts. The cost

of legal action is disproportionate to the size of the debt. The surgery is better advised to engage a debt recovery agent who will make written and telephone demands and will retain a percentage of debts recovered, but otherwise charge no fees.

The hardware wholesaler is in a different situation. The wholesaler should be prepared to incur the costs in taking legal action to recover its outstanding debts.

You would therefore think that a business like the wholesale hardware business with many significant debtors each month would be inclined to deal directly with a solicitor experienced in the court process rather than a debt collection agency which must itself engage a solicitor to initiate legal action. Interestingly, many such businesses engage a debt recovery agent, perhaps believing that there is a cost savings. Perhaps they believe the collection agency will provide a service additional to pursuing the debt through court processes.

Is there a costs saving or other benefit?Care needs to be taken in understanding

the service being offered by a debt recovery agency. It will attempt to recover the debt by making an initial demand but if unsuccessful, after obtaining instructions from the client, will instruct its own solicitor to issue legal process. The agency will have told the client that it is only charging the client its “out of pockets” and that its service is otherwise “no win/no fee” but what this means is that it will pass on its solicitor’s costs as an “out of pocket”. Those costs will almost always be the same as the costs the business would have incurred had it instructed its own solicitor.

While the costs may be the same, it should be remembered that if, after the issue of the legal process the debt is ultimately recovered, the agency will then charge its commission (in addition to the legal costs incurred). Solicitors are not allowed to charge commission and the effect is a much smaller net recovery to the client who engages the debt collection agency than the client who engages the lawyer direct.

Services offered by a collection agency may be attractive to some clients. Many agencies provide online access to files so that clients can readily find out where their matter has reached in the debt recovery process. Collection agencies may be better able to produce monthly reports and other information which many solicitors will be reluctant or unable to provide.

One argument which collection agencies will make is that because they only are remunerated when a debt is recovered, they work harder to recover the debt than the solicitor who has no such interest in the recovery outcome. They will argue (and it is true ) that the solicitor is paid whether or not the debt is recovered.

This argument fails to take into account that the business client is still paying the same legal costs to the agency’s solicitor. Further, by being remunerated by way of commission rather than fees for service, agencies are more inclined to encourage clients to pursue debts which are unrecoverable or encourage clients to issue legal proceedings when that is not the best commercial option. Solicitors do not depend on commission and they do not have the same incentive to encourage a business with debtors to continue to attempt to recover an unrecoverable debt. There are many businesses with repetitive commercial debt recoveries who would find that directly engaging a solicitor experienced in debt recovery rather than a debt collection agent would result in significant costs savings.

Robert White is a Partner in White Cleland Lawyers. [email protected] Tel: 9602 4022

By Robert White*

Leasing and duty payable

THE State Revenue Office (SRO) has clarified the operation of lease provisions in sections 7(1)(b)(v) and (va) of the Duties Act 2000. The ruling provides guidance on the operation of the lease provisions and outlines the factors which it will take into account in determining whether stamp duty will be applicable to specific leasing arrangements. The lease provisions apply to arrangements where a lease has been used to affect the transfer of valuable rights or an economic benefit in the underlying land. The purpose of the provisions is to ensure that certain lease arrangements concerning land in Victoria are not used to avoid duty.

What do the lease provisions do?The lease provisions will apply to a leasing

arrangement (including a grant, transfer, assignment or surrender of a lease) if any payment (monetary or non-monetary) is made over and above rent, and the lease arrangement has the effect of transfer-

By RichardGoldsmith*


ring valuable rights and/or benefits in the property. The SRO considers that such a payment is for the acquisition of these valuable rights, and is in addition to the rent payable under the lease, which is often minimal.

When does liability arise?Liability will arise in circumstances where

payment (monetary or non-monetary) is made over and above rent for the acquisition of rights and/or benefits in relation to land in addition to the right to use the land under the terms of the lease. For example, the granting of a long term lease to develop a property in exchange for a premium payment (close to the market value of the property) will attract the duty.

Also, other leasing arrangements such as the granting of a concurrent lease where the payment reflects the net present value of income from the property would fall within the lease provisions. The right to purchase, options to purchase and the right of first refusal will also be caught by the lease provisions, where the leasee has made payment (monetary or non-monetary) over

and above rent for acquisition of these rights. There is no distinction between land used

for commercial and residential purposes.However, duty does not apply to ordinary leases only requiring payment of rent, or a transfer of lease as part of a sale of business.

What about retail leases?A lease under the Retail Leases Act 2003

would generally not be dutiable because the Retail Leases Act 2003 prohibits the payment of ‘key money’, being money payable by a tenant by way of a premium for the granting of a lease, an agreement to grant a lease, an option for the renewal of a lease or consent being given to the assignment of a lease or to the sub-leasing of premises. However, arrangements that circumvent this prohibition may result in such leases being dutiable under the lease provisions. Where consideration is paid for the transfer or assignment of a lease under the Retail Leases Act 2003 duty may be payable.

Factors taken into considerationThe SRO has indicated that it will take a

common sense approach, and consider the following circumstances when making a

determination: the nature and circumstances of the transaction as a whole; the nature and value of rights and benefits acquired; the amount of the payment made in respect of the lease; the amount of rent payable under the lease and whether it is at a market rate; and the term of the lease and ability of the leasee to extend possession.

There are exemptions from the application of the lease provisions, including residency rights in a retirement village, options in a lease granted before 21 November 2008, existing exemptions and concessions applicable to dutiable transactions, caravans and where duty has already been paid in respect of a lease.

What happens next?The new measures apply retrospectively

from 21 November 2008, so taxpayers who have entered into, or are negotiating a lease of land or a transaction to acquire dutiable property in Victoria should review their position in light of these changes to the law.

* Richard Goldsmith, of Carroll Goldsmith Lawyers. Tel. 5975 7588.

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CONTRIBUTIONS

THE adage about not being able to teach old dogs new tricks is being overturned in the push to get more mature age people back into the workforce, especially in the skills and manpower challenged manufacturing sector.

Enthusiatic Rachael Angus dismisses any suggestion that older workers can’t take up new skills and make valuable contributions in manufacturing. She sees it happening on a daily basis.

But just as interesting and rewarding for Angus is seeing older workers in mentoring roles teaching all their hard won skills to younger employees.

Angus is project manager for contracts won by her employer, the Pow Wow Group.

“Pow Wow has a long and proud history of creating real opportunities for mature age people and we recognises the issues associated with an aging workforce and the growing skills shortages employers in the manufacturing sector are dealing with.

“This year we have been contracted by the Department of Education, Employment and Workplace Relations (DEEWR) and the Department of Innovation, Industry and Regional Development (DIIRD) to undertake the Manufacturing More Mentors Projects.

The projects are helping employers in the manufacturing sector overcome skills and labour shortages by hiring experienced mature age job seekers and recently retrenched workers over the age of 45. These experienced workers also support the skills development of new employees through structured workplace mentoring.

Angus says she has been ‘blown away’ by the interest in the programs from both jobseekers and employers.

“Not only has there been great numbers of participants enrolling, local employers have shown a real interest and commitment to being a part of these programs.”

One Dandenong production manager told me that his business was happy to be offered the opportunity to employ mature aged workers through the program.

“The manager said his firm the benefits of having maturity in the business – mature aged staff offer not only experience and skills, but their loyalty and ability to mentor others, are all significant qualities that the manager said he was seeking”.

“Employers like Actco Pickering in

New tricks for ‘old dogs’ Dandenong have taken up the program with gusto – already trialling participants and offering ongoing work.

“These sorts of outcomes are happening regularly. Employers generally have been very impressed with the quality and experience of participants, and it is proving to be a very good option to find quality staff – at absolutely no cost to their business!

Feedback from the job seekers has been equally positive, according to Angus. “Participants have reported a real boost to self esteem, knowledge and job seeking activity directly attributable to the program. They have commented directly on the quality and delivery of the training, as well as the dedication of the Pow Wow team.

One participant is quoted by Angus as saying: “It is so terrific to have the chance to participate in a program that can provide real and tangible outcomes both in learning and employment.”

“Another said they felt they had gained more from the program in two weeks than in two years of job seeking activity. This person was offered a work trial before I had even finished the first 5 days of the program!”

Rachael Angus is looking forward to assisting many more participants and employers through Manufacturing More Mentors and asked employers and mature age job seekers to call her on 8567 0200.

US-based internet fraud fighter RSA says in its latest report that the presence of malware on corporate computers is increasing as more employees access personal email accounts and carry out personal business while at work.

The dual use of corporate computers for personal and business activity opens the door for Trojan infections on corporate issued endpoints and opens the way for cyber criminals to steal commer-cially-sensitive data.

“Little attention has been focused on the crossover impact and potential risks malware could pose to the enterprise,” said Ian Farquhar, senior technical consultant at RSA, The Security Division of EMC.

“The reality for security managers – particularly for organisations that issue laptops to employees – is they have

little visibility into the online activities conducted by their employees when they are disconnected from the network. The level of risk increases significantly for organisations which allow anytime, anywhere network access – and even more when partners and other third parties are granted access privileges.”

Sites known as the “usual suspects”

– pornography, gambling and pharma-ceuticals – remain the most likely avenues for infection. However, fraudsters have invested considerable effort in exploiting legitimate sites including popular news sites, social networks and celebrity fan pages to increase the volume of infection.

The Online Fraud Report findings include: • 16,274 worldwide phishing attacks in September, a nine per cent decrease from August.• 178 brands were attacked in September, an 18 per cent decrease from August (216). This is the first time in over a year that the number of targeted brands dropped below 200.• The US hosted the most phishing attacks in September (61.5 per cent) with South Korea hosting seven per cent, an increase of two per cent from August. Australia hosted 3.5 per cent. The countries consistently hosting the largest portion of phishing attacks within the past six months are US, UK, Germany, Canada, Australia, France, South Korea and Russia.

The volume of phishing attacks suffered by the US dropped five per cent and the UK dropped three per cent. The volume of phishing attacks in China increased by three per cent in September. Australia was not listed in the Top 10 Countries by Attack Volume

The US, UK, India and Canada were the countries with the highest portions of brands targeted by phishing in September. Three per cent of brands targeted in September were Australian brands. In the past six months, the countries that have

malware presents risks

Fraudsters have invested considerable effort in exploiting legitimate sites including popular news sites, social networks and celebrity fan pages to increase the volume of infection.


consistently had the highest number of targeted brands have been the US, UK, Italy, Canada, India, Australia and South Africa.

The RSA Online Fraud Report outlines key statistics and the latest trends in online fraud from the RSA Anti-Fraud Command Centre, a 24x7 “war room” that detects, tracks, blocks and shuts down phishing, pharming and Trojan attacks perpetrated by online fraudsters. RSA FraudAction has shut down more than 160,000 illicit web sites across 140 countries, helping to protect more than 320 organisations.

Staff recruitment

DANDENONG-based ADM Powder Coating Services found two new employees through Reed in Partnership’s Dandenong office.

Sean Chadwick, owner of ADM which specialises in security screens, commercial frames and doors, said finding staff

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through Reed in Partnership “saved me in many ways, time, advertising for a vacancy and they sent the right person over for my business”.

Mr Chadwick said the process to find a key new staff member began with Reed visiting his company and making an assessment to find out “what attributes would suit my business”.

“Reed presented a suitable candidate, who was well prepared, had clear expec-tations of my business was very eager, enthusiastic.

“This person is now an integral part of my business, who opens and closes the business daily.”

With advice from Reed the man is now able to help mentor and coach junior staff members.

Mr Chadwick then asked Reed to find a junior to help around the workshop and do some labouring.

“Reed in Partnership helped the candidate with a resume that clearly demonstrated his experience and

enthusiasm for the industry.“They also helped with work clothes -

overalls and work boots - and provided weekly support where needed.”

Mr Chadwick said Reed’s involvement continued after the person was hired and when “some minor issues came up, they came straight out and sorted things out immediately”.

“I feel confident that I can call Reed if I require any other staff members because they have taken the time and trouble to know my business and provided me with a dedicated account manager, Martha Esparon.”

Reed in Partnership works with the federal government’s Job Services Australia to help find appropriate staff for businesses in the Dandenong area. There is no cost to business and Reed offers a one stop for all recruitment needs, vetting clients and helping select job candidates. Reed also offers training to suit specific industries. Call 8644 9220 or www.reedinpartnership.com.au.


hEalTh

OK, the peasants working the fields weren’t overly interested in any such theoretical discussions, as they were too busy surviving, but it was a hot topic among the educated classes, and the schools of influential philosophers who were indulged in the courts of various rulers and emperors. (You’ve probably even heard of one such adviser – Confucius.)

To cut the story short, the entire treasure-house of Chinese medicine – as Chairman Mao once described it – is built upon the idea that each human should have a long, healthy lifespan of 100 years. That is, unless they waste their vital energy.

So in pursuit of longevity, practitioners of Chinese medicine and in related fields developed various life-enhancing practices.

One example is qigong (literally: energy work), a gentle exercise system not dissimilar to the yoga styles from other parts of Asia.

The idea of this and other customs that extended to dietary considerations and sexual practices was to maximise health for as long as possible, and hence allow a person to live their allotted 100 years.

This was a stream of knowledge that came to understand a great deal about human

‘It’s something of a myth, by the way, that life expectancy is substantially increasing.’

Fitness is not the same as healthSomE 20 centuries ago, the Chinese – then undeniably the world’s most advanced society – became singularly obsessed with the pursuit of long life – even immortality.

health and how to maintain it – substantially more, one could argue, than any medicine system before or since.

Western medicine has come to understand an enormous amount about the anatomy of illness, but in comparison next to nothing about health. (It is improving.)

Followers of Daoist philosophy – many of them Chinese doctors – took pride in their longevity, and indeed archives reveal that many did live considerably longer than their counterparts in Western countries, some even to their century.

And we’re talking here about 10 to 20 centuries ago – while Europe was languishing in the Dark Ages.

It’s something of a myth, by the way, that life expectancy is substantially increasing. The increased average lifespan in these times is more due to reduced infant mortality – which increases lifespan averages enormously – than to any improvement in “health” in the advanced years of life. (References available.)

To cut to the chase, while Chinese

medicine in common with all medical systems advocates regular exercise as essential to health, it is unhappy with the sort of extreme exercise that seems to be considered healthy in our society.

While daily activity is recommended, and should include the movement necessary to do one’s daily work, it need not be unduly intense.

In fact, in ancient China people were cautioned against extraneous exercise because it was seen as a drain on the reserves of vital energy needed to maintain good health.

Those who were required to exert themselves strenuously in their work were seen as unlucky and unhealthy.

Some (not all) martial arts involved gruelling practices and extraordinary physical hardships but they were more influenced by the imperative for defence than concern for the health of the practitioners.

The point is, the Chinese had no interest in “extreme” sports or training.

They did not run marathons, or do triathlons, or climb mountains, or lift heavy weights, or endure months of demanding pre-season football training in the summer heat. These types of activities, while producing physical fitness, also drain vital energy and may ultimately undermine health.

The Chinese would expect people engaging in such pursuits to be less healthy in older age, and to die younger.

In the West, athletes continually push the bounds of physical human ability in speed, strength and stamina.

But unless one is training to be a profes-sional athlete, this amount of exertion and effort is over-using one’s reserves of vital energy that may be needed for other activities in life – especially one’s life work.

The ancient Chinese called these secondary pursuits “going sideways”.

Quite often you hear of a person suffering a health crisis, perhaps even a fatal one, and friends and family say: “But he was so fit!”

Yes, but it’s not the same as being healthy.

*Michael Ellis is a registered Chinese herbalist in Mt Eliza. www.mtelizaherbal.com

Michael Ellis*Chinese Herbalist


A COMPANY that produces equipment to monitor driver fatigue claims it would be false economy to make a GPS (global positioning system) mandatory in trucks.

The federal government is being asked to introduce laws for GPS as a way of combating driver fatigåue by tracking truck movements and ensuring drivers take regular breaks. Richmond-based Optalert says this approach does not measure a driver’s fatigue level from the moment he or she gets behind the wheel.

The company has hired Melbourne-based public relations company Write Connections to promote its views and product. Optalert makes spectacle frames fitted with tiny invisible light emitters and receivers that measure the blinks of an eye 500 times a second. The information is transferred to a dashboard-mounted indicator which scores a driver’s drowsiness level from 0 to 10. The data can also be sent to management through the internet.

In a news release Optalert CEO John Prendergast states he supports the National Transport Commission’s desire to decrease fatigue -related accidents in the transport industry but “the current approach is funda-mentally flawed”.

“GPS is an undeniably useful technology for managing on time deliveries and informing fleet management on the whereabouts of its drivers and machinery... But to suggest that GPS can make the highway safer by preventing fatigue is quite misguided.”

Instead of taking driver fatigue into consideration mandatory GPS “makes the assumption that drivers are always fit for

work when they start their shift and fails to consider influencing factors outside of the workplace. We’ve seen drivers close to a fatigue-related accident after only 30 minutes on the road – nowhere near the proposed nine-hour GPS guide that is being discussed as the cut off point by those pushing for mandatory use of telematic technology (GPS). In fact, we have statistics that show the majority of incidents occur within 45 minutes of leaving the depot.”

The National Transport Commission’s “Draft National In-Vehicle Telematics Strategy: The Road Freight Sector” gives the following case study in support of making GPS mandatory: Energy distributor

Cootes Transport Group uses technology to roster drivers, schedule loads and manage regulatory compliance. Drivers swipe their identification tag and key in ‘events’ – like the arrival at a terminal to load. Global positioning system data is used to verify driver movements. If a driver fails to take a mandatory rest break, a prompt will appear on their personal digital assistant (PDA).

Cootes general manager Greg Niven said an electronic system allows the operator to manage compliance with fatigue laws in real time, rather than responding to events after they have happened. But, drivers are still required to complete paper work diaries because their electronic systems are not formally recognised by governments.

New look at driver fatigue

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‘We’ve seen drivers close to a fatigue-related accident after only 30 minutes on the road’

DRINKING a sweet beverage may either help or hinder people with aggressive personalities depending on the social setting, a new study has found.

Consuming a sugary drink can make such people less likely to respond impulsively when they are insulted or otherwise provoked, yet it can also make them more aggressive when they are not provoked, the study found.

Despite a widely held notion that glucose consumption can lead to a “sugar high” resulting in impulsive behaviour, the findings suggest that glucose can actually increase self-control in circum-stances where aggressive individuals are provoked, says a research team led by Dr Tom Denson, of the University of New South Wales School of Psychology, in a paper in the Journal of Experimental Psychology.

“Our findings suggest there may be some truth to the ‘sugar high hypothesis’. When provoked, glucose reduced aggression among highly aggressive individuals. Yet when unprovoked, it augmented their aggression. Aggressive individuals tend to have particular difficulty controlling aggressive impulses when they are provoked and most provocation happens unexpectedly. But our finding suggests that if you know you’re about to have an encounter with someone who is likely to provoke you - a difficult work supervisor, for example, or an ex-spouse - having a sugary drink beforehand may be effective in inhibiting your aggressive impulses, particularly if you are an aggressive person.”

‘Sugar high’ is bitter-sweet for aggressive people: study


NEWSWHeeLs

Styling of the latest Volvo SUV is avant garde and shows the company has long since departed from its staid ways.

The Volvo XC60 is described by its designers as being a cross between a coupe and an SUV. But, we feel it’s a genuine SUV (Sports Utility Vehicle) because there’s plenty of usefulness in its design.

Motoring JournalistMotoring Journalist

Whereas Volvo’s larger SUV, the XC90 is a family wagon, the XC60 certainly has a sportier note in its makeup.

The styling is significantly bolder than anything offered by Volvo before. The front grille is big, stands tall and has a large Volvo ‘iron mark’ symbol in the centre. The wedge shape of the body as it tapers to the rear works well. The very Volvo taillights make full use of the big ‘shoulders’ of the chunky wagon body.

The new turbo-diesel engine for 2010 retains the same five-cylinder layout and 2.4-litre capacity as the one it supersedes, but is an all-new design with twin turbo-chargers rather than the single turbo of the previous engine. Engine output is 151 kW which is pretty impressive from an engine of this size. However, torque is the biggest feature of any turbo-diesel and the new Volvo powerplant achieves a strong 420 Newton metres at 1500 revs. And the diesel holds onto that pulling power until the engine is spinning at 3250 rpm. We found the XC60 to be in this range of engine revolutions virtually all the time during the road test, so were always getting the best from it.

Response to the accelerator pedal is pretty quick, but even with two small turbos, there’s inevitably some lag before

the engine is giving its best.When sitting inside the car it’s only at

start-up and at idle that you’re aware that the D5 isn’t a petrol unit.

Volvo claims its XC60 may be the safest car on the road today. A statement we take seriously because the Swedish company is certainly not one to boast without backup. Major safety items include front, side and curtain airbags, ABS brakes with emergency brake assist, stability and traction control, lane departure warning, collision warning with automatic braking, blind spot information system and driver alert control.

There’s also an impressive system called City Safety that strives to eliminate all low-speed crashes by applying the brakes should the Volvo sense it’s closing too fast on a vehicle in front in city and suburban traffic conditions. We have tested this against soft objects and came away amazed by the way the Swedish car slows abruptly and avoids hitting the dummy vehicle in front.

On our recent road test we were impressed by the low levels of noise

intrusion and by the fact that the XC60 is almost car-like in the way it handles bends. Naturally, you can feel that it has a higher centre of gravity than a pure passenger car, but the levels of road grip are much higher than those likely to be attempted by the average owner.

Inside, there’s genuine space for four adults, and a fifth still has a decent amount of room to move. The front seats are large and support reasonably well, though a little more side support would have been appreciated during spirited cornering.

Though it’s not really intended to be an off-road vehicle, Volvo XC60 has above-average ground clearance of 230 mm. Indeed that gives it more distance off the terrain than many dedicated 4WDs. We have road tested it in mild off-road areas and the traction on offer is enough to let it through without missing a beat.

Front-wheel-drive Volvo XC60s are available in some other markets and may come to Australia as our importation tariffs are now the same for these vehicles as for the all-wheel-drive models. (Until the start of 2010 4WDs could be imported into Australia at a cheaper rate than cars, but that situation has now been evened out.)

Ewen Kennedy

Safe, but not so staid


voLvo xC60

AT A GLANCE

BUSINESSTImES dIRECTORY

MODEL RANGEVolvo XC60 3.2-litre petrol wagon: $57,150 (auto)Volvo XC60 D5 2.4-litre turbo diesel wagon: $59,950 (auto)(Not including government and dealer charges)FEATURESStandard features (all models): ABS brakes, air conditioning, auto transmission, CD player, central locking, cruise control, dual front airbags, front side airbags: stability control, traction control.ENGINE: (Volvo XC60 D5 2.4-litre five-door wagon)Capacity: 2.400 litresConfiguration: Transverse, five cylindersHead Design: DOHC, four valves per cylinderBore/Stroke: 81.0 mm x 93.2 mmMaximum Power: 136 kW @ 4000 rpmMaximum Torque: 400 Nm @ 2000-2750 rpmDRIVELINE:Driven Wheels: All-Wheel-DriveManual Transmission: Not offeredAutomatic Transmission: Six-speedFUEL CONSUMPTION:Type: Diesel – Combined Cycle (ADR 81/01): 8.5 L/100km

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All information and sizes are approximate. Particulars herein are for information only and do not constitute any representation by the owner or agent. Interested parties should make their own enquiries. If you do not wish to receive further information please contact our privacy officer.

Plan not to scale.

16 Lot Subdivision

Michael Crowder 0408 358 9261 COLEMANS RD, CARRUM DOWNS VIC 3201 9775 1535

• Sizes range from 2,009 – 4,261sqm

• only 5mins from new Peninsula Link on ramp, Somerville and 10 mins from Mornington.

• No restrictive covenants

• Titles due for release mid 2011

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