Home' InDaily : February 19th 2010 Contents AICD EVENTS SME BRIEFING
Romancing the Bank
When economic times are tough, having a good
relationship with your bank is critical. Courting your
bank may not be something that you have had
much practice with, so we will discuss some of the
finer points; how to approach the first date, what
information your bank will find useful, how to
package that information to help your bank see
your finer attributes, and when to seek out another
banking partner, if the romance turns sour.
Date: Thursday 11 March 2010
Venue: InterContinental Adelaide
Time: 5.30pm to 7.30pm
Do not miss your place at this informative
To register, contact Megan Galpin on 1300 783 566
February 19 - 25, 2010 news
Back of beyond
Just in case you thought Adelaide
was a world-class destination,
industry journal TravelToday has put us
straight, with the help of the Federal
Transport Minister. TT reports: "Etihad
has tabled plans to fly into Adelaide
after being granted an additional
14 weekly flights by the Australian
Government. Officials from Abu Dhabi
and Australia reached a deal which
will allow Etihad seven additional
weekly flights from March." A further
seven weekly frequencies will be
available from March 2011, provided
the airline uses the capacity to fly into
a regional airport. A spokesman for
transport minister Anthony Albanese
said the air services agreement was
designed to incentivise carriers to fly
into regional airports, "which in this
case, is Adelaide," he said.
Gambling on tough times
Skycity Entertainment Group, owners
of the Adelaide Casino, announced
a Net Profit after Tax of $71 million
for the half year ended 31 December
2009, up $16.2 million, or 29 per
cent on last year's first half. Revenues
for the half year were $447 million,
up 5.9 per cent, with the Adelaide
operation turning over $67.9 million.
Skycity's Adelaide venue reported
revenue growth of 5.3 per cent across
all sectors of the business -- gaming
machines, tables and food and bever-
age. The report stated Adelaide's
revenue growth came "in spite of
the fiscal fade and softening gaming
machine revenues in South Australian
pubs and clubs and softening retail
spending trends." Interesting to see
Skycity's Darwin Casino turns over
almost as much as the Adelaide
operation, despite having only an
eighth of our population.
Business SA put on a decent feed
at Adelaide's Convention Centre for
500 business people, media and
politicians, to launch Business SA's
Charter for a Prosperous South
Australia and let the pollies know
there was a long list of reforms.
Top of the wish list was payroll tax
followed by land tax and a desire to
tackle "over-government". Respective
purse-strings holders Treasurer Kevin
Foley and Shadow Treasurer Steven
Griffiths dutifully listened with their
parties already writing to Business SA
to indicate agreement with most of
the proposed reforms.
AWD puts in
More than 3000 family members and
supporters of the Special Olympics
will benefit from a new partnership
with the Air Warfare Destroyer (AWD)
Alliance. The Alliance is providing
$30,000 as naming rights sponsor of
the Families and Supporters Program
for the Special Olympics 2010
National Games. The Games will be
held in Adelaide from 19 -- 24 April,
showcasing more than 900 Australian
athletes with intellectual disabilities.
AWD Alliance CEO, John Gallacher,
said the Alliance was proud to be
But not Warnie
Forty Winks, the national bedding
retailer announced it was sponsoring
the Australian Sportsperson of the
Year 2009 and two time winner of the
Hawaii Ironman World Championships,
Craig Alexander. The Ironman
Recovery range of bedding is to be
sold exclusively in Australia by Forty
Winks. As a bedding manufacturer,
you would have to pick the right elite
South Australia s job market
is running at two extremes --
a shortage of highly skilled
professionals and an oversupply
of blue collar workers.
Midway between the two are
several industry sectors where
there are signs of improvement
but the impact of post-GFC
caution is still having an impact.
Analysis by major recruitment
firms and economists in Adelaide
provides a much different picture
to the ABS statistics released
earlier this month showing
unemployment at a remarkably
low 4.4 per cent for January 2010.
Recruiters summarise the
employment market as strong
at the top, showing signs of
activity in the middle and tough
for applicants in the lower salary
Manufacturing, wine and major
construction projects were identi-
fied as sectors still struggling.
Economists are concerned the
low unemployment numbers
mask a demographic that is
Recruiters also warned employ-
ers to be ready for a change in
conditions in late 2010 that might
leave businesses without the
talent they need to take advantage
of an upswing in economic
"That s the big challenge for
businesses -- being able to recruit
and retain," said Allison Ashby,
director of AME Recruiting.
"When the market starts to
move many personnel will look
around for new opportunities.
"Some companies will lose
people and then have trouble
replacing them," she said.
"They need a strategy now
to increase their likelihood of
retaining the people they want."
Ms Ashby said some businesses
were taking advantage of soft
labour market conditions to make
"We are seeing businesses
deciding to upskill while there are
available people in the market.
"For example, they might
release their chief financial
officer who has been around for
more than 10 years and replace
him or her with a more skilled
CFO -- someone who can partner
with the business s development,
rather than just count the beans."
Mark Hender, director of
Hender Consulting, said there
were already signs of increasing
mobility in the job market.
"You tend to forget what hap-
pened in past periods when the
market tightened, but the trends
are the same.
"In that period where global
uncertainty made everything
tough, staff were less willing to
leave their jobs for an unknown
prospect elsewhere," Mr Hender
"And in some cases large firms
in accounting and law were laying
off professional people adding to
the nervousness in the market.
"We are now seeing a release
of those tensions, an improved
outlook and therefore increasing
"However, jobs in manufactur-
ing are hard to come by.
"The pressures are different in
each industry sector so the jobs
figures don t always tell the story.
"For example, there is an acute
shortage of workers in aged care
and health services.
"Mining is now starting to
create some jobs, but the wine
industry is obviously doing it
Recruitment firm Hays agreed
it was difficult to find candidates
to fill hi-tech jobs.
"Engineering is the tightest
market with high skill jobs
available in defence and mining,
but the same can t be said in those
industries at the lower level,"
their spokesman said.
"If you are after a job in
warehousing, logistics or
manufacturing then you will
struggle." he said.
"In the middle of the market we see
signs of improvement in demand for
property managers, valuers, finance
officers and the like.
"Banking remains soft.
"Mining s period of layoffs looks
to have stopped and the industry is
showing signs of some improvement in
the second half of 2010."
The "two tiers" analysis is backed
up by data analysed at the South
Australian Centre for Economic
Studies (SACES), which shows the
number of full-time jobs in SA had
fallen by 7000 in the year ending
December 2009, while part-time jobs
had risen 12,000.
SACES Director Michael O Neil
said he was surprised at the low ABS
"These figures bounce around,
especially now that the ABS takes a
smaller statistical sample.
"And they are probably reflecting
short-term work at events such as the
Tour Down Under, Clipsal, Festival and
Fringe," Mr O Neil said
"The reality is the unemployment
figures will go back to the long-term
employment trends in May or June.
"Overall, the trend in South
Australia shows a loss of full-time jobs
for adult males," he said.
"The participation rate (percent-
age of people in the workforce) is
behind the national average, and well
behind the stronger states of WA and
"Unemployment numbers also
appear to mask an emerging trend
in SA -- people in their mid-50s who
lose their jobs and can t get similar
work are becoming involuntarily
Mr O Neil believes SA s economy
relies on some short-term fixes while
ignoring long-term economic develop-
"Our research shows we have the
lowest level of qualifications, low levels
of innovation and an ageing workforce.
It s not the basis on which you build
your future as a smart, innovative
"The reality is that we are still an
economy in transition."
Job prospects 'soft'
South Australia's male work force is
in decline according to data being
researched by the SA Centre for
"Twenty years ago around 80
per cent of men participated in the
workforce. " That figure is now down
to 70 per cent," Dr O'Neil said.
"Our concern is that men in the age
group 50 -- 55 who lose their jobs are
left in a no-mans land.
"They can't find a job or they try
work they are not suited to and then
step back into involuntary retire-
"They don't show up as unem-
ployed, but they would prefer to have
In no-man's land: transition proving hard work
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