Home' InDaily : February 26th 2010 Contents Amelia Senneck, Senior Associate. Amelia returns from London with extensive
experience working with a leading international litigation firm, where she advised on
a range of complex cross-border litigation, appeals and arbitrations. Her expertise
and collaborative approach ensures superior outcomes for clients.
a specialist legal practice
A New Appointment: Specialist Capability
LIPMAN KARAS LK
February 26 - March 4, 2010 news
Just in case you missed it
The global financial crisis has now
been downgraded to a six-week
northern hemisphere storm. "It was
really only a global crisis for six or
eight weeks, I think. The rest of it
is mainly a North Atlantic story,"
Glenn Stevens told the House
of Representatives economics
committee. "Whereas many of (the
North Atlantic economies) had their
worst recession since World War II, we
had probably our smallest."
And if you missed this too
The announcement of plans for the
old Mitsubishi site at Tonsley Park
were released this week. As stated
by Treasurer Foley last year it will be
a site for clean green businesses.
It will also take 18 months to clean
up the site. The Liberals said they
had the same idea back in 2008.
Meanwhile Playford Capital CEO
Amanda Heyworth had this warning;
"While it is easy to be romantic about
the prospects of companies in this
sector, the deal needs to stack up just
like any other deal -- with the right mix
of product, people and market."
Internode success story
Another big wrap this week for local
success story Internode; it won the
title of Australia's Top Internet Service
Provider for 2010 in a nationwide
consumer review on ProductReview.
com.au. Internode scored an average
4.68 out of 5 stars, ahead of second
rated Optus Broadband, with an
average 2.95 rating and in third place,
iiNet at 2.94 stars. At only 8th in the
consumers' rankings, Telstra BigPond
scored 1.75 out of 5. We can hear the
corks popping already.
Good news too for local lawyers with
the release of figures detailing how
much work is done free of charge.
South Australian lawyers provided
more than $10million worth of
pro bono legal work per annum, a
survey conducted by the Law Society
of South Australia revealed. The
Society conducted the Pro Bono Work
and Outlook survey in an effort to
determine the amount of pro bono
work being undertaken by local
practitioners in their own firms or in
their private capacity as members of
Fitness to be regulated
The Australian Institute of Fitness
has developed a certification process
to regulate personal trainer's
qualifications. The Institute's Master
Trainer Certification combines the
necessary Certificate III and IV
in Fitness, with stringent criteria,
developed in conjunction with
fitness industry leaders and their
national training team. It reminds
Briefcase of the local businesswoman
struggling on her treadmill alongside
a glamorous, tanned and super fit
female personal trainer. She looked
knowingly at the trainer and
declared, "In my own mind, I look just
Warren in the dark
Hats off to the staff at PR firm Michels
Warren who endured a difficult week
at their Melbourne Street premises.
Much-awaited renovations to the
toilets became even more urgent
when all the lights went out. Torches
were made available to one and
all with preference going to female
workers. Despite the difficulties MW
still managed to host a workshop for
Public Relations Institute of Australia
members on Tuesday.
One in 12 South Australian
and are looking for more
paid hours, according to a
survey released this week
by the Australian Bureau of
The survey backs up
last week s report in
The Independent Weekly
where South Australian
recruitment agencies and
economic analysts observed
that large numbers of
"employed" workers are
The survey also
confirmed the view that
older workers were finding
it harder to get a job.
The new figures
were compiled from
data collected in the
Survey conducted in
The figures show 8 per
cent of the workforce was
looking for more work, on
top of the 4.4 per cent listed
"On average, older
experience longer periods
of underemployment," the
ABS survey stated.
In last week s story on
the fall in official ABS
South Australian Centre of
Economic Studies Director
Michael O Neil said he was
surprised at the state s
official unemployment rate.
"They are probably
reflecting short-term work
at events such as the Tour
Down Under, Clipsal,
Festival and Fringe," Mr
O Neil said
"Overall, the trend in
South Australia shows a
loss of full-time jobs for
adult males," he said.
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
Responding to the article
this week, Premier Mike
Rann told The Australian he
relied on ABS figures.
In South Australia
there were 65,300 people
The main reasons
given in the survey for the
difficulty obtaining more
hours were no vacancies in
line of work (21 per cent)
and no vacancies at all (16
Credit availability for busi-
ness and investment will
remain tight for the next 18
months to two years according to
Bank SA CEO Rob Chapman.
"How much capital becomes
available depends on our success
in attracting local deposits
because the cost of borrowing
overseas is still too high," Mr
Chapman told The Independent
Weekly in a wide-ranging
assessment of local business
"Two years ago money markets
charged about 30 basis points
above the yield, but now that
figure is around 180 points above
the yield; that s a big difference
in borrowing costs.
"Those conditions are likely
to remain for the next couple
of years. So the new normal
for business is that the cost of
money will be higher."
Banks are also less likely to
lend to businesses or investors
without a substantial amount of
"If you ve got a good business
plan, some pre-sales and a decent
ABS numbers back 'soft' jobs
to 'new normal'
deposit, you will get finance, but
in the more speculative areas
conditions have changed," Mr
"In and around the $2 million
area we might have done deals
in the past where the investor or
business needed 10 or 15 per cent
equity but now it s a minimum 30
"There is money out there for
investors, but it comes under a
different set of conditions."
The changing credit rules
will have the intended effect of
making it less likely that South
Australian businesses will fail.
"I think a lot of lessons were
learned in the fallout from the
easy availability of credit in the
lead up to the global crisis.
"Those lessons are now very
clear in people s minds, espe-
cially younger business people
who had not experienced such a
collapse in their lifetime.
"That s the positive to come
out from this."
Mr Chapman said South
Australia s commercial sector
had survived the global crunch
better than expected, although
some sectors were feeling a lot
of pain. He listed wine and other
export-oriented sectors as the
"The strong Aussie dollar
and a fall in overseas demand
have made it very tough for the
wine industry -- some of those
businesses are doing it very
tough," he said.
"Despite the good yields this
year in wheat and barley the
strong dollar and lower commod-
ity prices mean there are a few
problems in that sector as well."
Education, tourism, retail
sales, defence and mining had all
fared well in the last two years.
Bank SA has provided the
finance for nine out of the 10 big-
gest commercial developments
in recent times including the SA
Water building, Hotel Adelaide
development and new SAPOL
headquarters in Flinders St.
"The commercial property
sector has withstood the storm
better than any," Mr Chapman
His comments were backed
up by Colliers International
industrial property analyst
Mr Gerlach s presentation
to Pitcher Partners Emerging
Issues property seminar at
Adelaide Convention Centre
identified the CBD as an area of
"There is around 93,000 square
metres of vacant office space
in Adelaide at the moment -- a
vacancy rate around 7.5 per
cent," Mr Gerlach said.
"While that is the highest
since 2006, the outlook is for a
tightening market in the next few
"Of particular interest are the
number of green and five-star
buildings providing an attractive
level of quality for tenants," he
said. "The hot spots will be the
CBD, Kent Town, Keswick and
"Bowden will be an interesting
test of the viability of the
concept of Transport Oriented
Developments where transport
corridors are designed to
attract residential property
development followed by retail
Mr Gerlach noted that sales
in industrial property had been
very flat in 2009, but he attributed
the 10 per cent decline in capital
values to investors unwilling to
sell in the flat market.
"Edinburgh Parks, Wingfield,
Gepps Cross and Cavan shape
as attractive prospects in the
He expected retail develop-
ments to also bounce back in the
next two to three years.
Mr Gerlach and Mr Chapman
agreed that South Australia s
more conservative economic
base had protected it from some
of the more fierce financial
winds of 2008 and 2009.
"Our housing market is OK,"
Mr Chapman said. "We don t
have the boom and bust forces
that operate in Sydney and
Melbourne; our market tends to
just move along steadily.
"We are also seeing statistical
evidence of a baby boom in this
State; I m not sure why, but that s
what we are seeing," he said.
"There is also evidence of
people returning from overseas
and interstate. It s a case of
opportunities drying up away
from home and opportunities
improving at home."
Bank SA CEO Rob Chapman.
Links Archive February 25th 2010 March 1st 2010 Navigation Previous Page Next Page