This week saw the release of the January 2023 Commsec State of the States report and while Tasmania was ranked Australia’s best performing economy in the previous report, we’ve now slipped to number two. While we still lead the nation with our investment in plant and equipment (76.8% above the decade average), Tasmania falls behind in areas such as inflation, with Hobart having the highest inflation rate in the September quarter at 8.6% and retail spending, which dropped by 0.9%.
There is real concern that this drop in retail spending is a sign that increased costs of living, and decreased discretionary spending is hurting our economy. A big contributor to increased costs of living and a huge expense to business is energy pricing. According to an article published on The Examiner website this morning, wholesale electricity prices have started to drop and federal market intervention to cap prices has made an impact, but is enough being done to reduce the cost of living and to ensure power prices don’t jeopardise the viability of our local businesses? Is it time for government action to decrease the cost of living and increase confidence?
Following the results of the southern Tasmania elector poll on the UTAS move to the Hobart CBD, the Chamber has an invitation for the University of Tasmania: Head North.
As passionate advocates for Launceston and northern Tasmania and keen observers of the UTAS Northern Transformation Project, we value the University’s growing presence in the North. As an entrepreneurial city with high aspirations, we would welcome the shift of more University courses and entities northward from Hobart.
The benefits of the Northern Transformation Project to our region are significant:
The UTAS Northern Transformation Project has been a transformative project for Launceston that will embed the University as a pillar institution for our city. If the University of Tasmania were to move more University courses and entities to Launceston, the Chamber would be in full support.
On Tuesday Night, the Federal Government handed down its first Federal Budget. The Budget has been described as a sensible budget considering the current conditions. With the reserve bank increasing interest rates to combat inflation, and inflation the enemy of the economy, the Federal Treasurer had a tough task when implementing cost-of-living relief measures. The measures to be introduced will include cheaper child care and encouraging downsizing to free up housing stock.
In regard to infrastructure and priority projects, we’re thrilled with the news that Northern TRANSLink, an intermodal facility to be located near the Launceston Airport, will be funded. This facility will improve access to interstate and overseas markets for perishable goods and considering Launceston and northern Tasmania’s designation as a UNESCO Creative City of Gastronomy, the demand for northern Tasmanian produce will be in hot demand. This is fantastic news for agribusinesses in the region. TRANSLink is a regional priority project identified by the Regional Collaborative Framework (RCF). The RCF was a concept born in the Chamber and brought to fruition by the Northern Tasmania Development Corporation.
Health funding announcements for northern Tasmania were pleasing with $4 million over four years committed to a Medical Research Centre at the Launceston General Hospital and $20 million over four years for the development of a new hospice to provide palliative care in the region.
On the negative side, we are concerned with the lack of funding for two of Launceston’s priority projects:
With the cancellation of the Building Better Regions program by the Federal Government, the future of these two key projects is unclear, but we look forward to working with all levels of government to ensure the delivery of these key projects for Launceston.
Reference: Ruddicks Chartered Accountants advice article, available here. Ruddicks Chartered Accountants are a gold Chamber member.
Today is R U OK day, a day for checking on those around you and starting conversations with the simple question ‘Are you ok?’
So, let me ask you, are you ok? Let me follow that up with, are your staff ok? Have you checked in with them recently? In these challenging times it’s never been more important to look after your mental health and that of your team, but where do you start?
It could start with ‘Are you ok?’, a simple question that starts a conversation.
Before you ask that question though, there are a few questions you need to ask yourself. according to mental health educator and Chamber Director, Bianca Welsh, if you as a business leader are concerned about the mental health of a staff member, here are the first steps you should take:
• Ask yourself, am I mentally well enough to have this conversation? As you never know what you may be confronted with, could it be a trigger for your own mental health?
• This should be followed by the question; am I the right person to be having the conversation? Is this better filtered through someone that they have a better connection with or trusts more?
If you feel confident that you are mentally well enough to have this conversation and are the right person:
• Make sure you’re in a place where both you and your staff member will feel comfortable.
• Ask the question in your own, casual way e.g. How are you travelling? Bianca suggests starting with; “I’m concerned about you, and I wanted to have a chat to see if you’re okay. I’m a little bit uncomfortable and I don’t want to cross a line, but I just want to start a conversation with you. I’ve observed X, Y, Z. I’m concerned about X, Y, Z in your behaviour.”
• Always come from a place of genuine care and empathy, putting aside any judgmental thoughts.
• Temporarily remove your employer hat. Yes, you are their employer, you have a business to run, and they have a job to do, but if you come from a place where you want that person to get better, you can’t go wrong.
• Be prepared should the conversation not go as planned or for what you may be confronted with. You might refer them to their GP, your businesses’ Employee Assistance Practitioner, or another support service such as Tasmanian Lifeline, HeadSpace, Head to Health, Anglicare, Enterprising Aardvark, or The Men’s Table (to name a few). If you’re not sure, it’s ok to admit to them that “I’m not sure where to start, but let’s do this together, I’m here to help you.”
With worker’s compensation claims for mental health-related conditions increasing, it’s important we monitor the mental health of our employees. Here are a few additional ideas for you and your business:
• Have you considered undertaking and/or having one of your staff undertake a Mental Health First Aid Course? Please see the next newsletter article for more details on an upcoming course.
• RU OK? has developed a number of resources for workplaces. You can register to become an RU OK? Workplace Champion (free of charge) and gain access to their suite of resources.
• October is WorkSafe Tasmania Month. The theme for 2022 is Safe Bodies, Safe Minds and Worksafe Tasmania are running a number of events, some focussed on mental health in the workplace.
• Have you considered an Employee Assistance Provider for your workplace?
Let’s all keep an eye on each other, ask the question, start the conversation and make sure WE R OK.
In my conversations with members from just about any industry, it’s an understatement to say that staff shortages are a big problem for businesses in Launceston and northern Tasmania. According to a release by Everybody’s Home on Tuesday, the lost economic output due to vacant jobs (per year) for our region is $201 million. The report states that Launceston and northern Tasmania is one of five regions where the shortage of affordable housing in these communities is undermining the capacity of employers to attract staff.
In addition to this report ABS data has revealed that increases in our population have dramatically slowed, with the four years to June 30, 2020, seeing an average increase of 1320 residents per year, and the year to June 30, 2021, saw an estimated resident increase of just 105.
The anecdotal evidence for this is that people want to move to the region but can’t find anywhere to live. These people could fill the current vacancies but to find accommodation, particularly if they bring a family with them, is tough. Combine this with the increases in homelessness in the region and it’s apparent that housing is the major challenge to our region.
So, what is the solution to housing in the region?
Launceston and northern Tasmania are not alone in battling the challenge of housing shortages with other Australian states, New Zealand, and the US all looking at solutions for housing shortages. In Victoria, one council is installing cabins on council property to provide temporary accommodation. Elsewhere in Victoria, an international concept called Home Share is matching an older person (often an older person with a disability) with someone who can provide support, practical help, and companionship in a suitable house.
Are staff shortages a challenge for your business?
Do you have any ideas for possible solutions?
What are your thoughts on this important issue? Please let us know.
It was a great start to the week with The Mercury, a Platinum Chamber Member, reporting that credit reporting agency CreditorWatch, has identified Launceston as one of the best locations in Tasmania to do business. CreditorWatch sees trade payment defaults as the leading indicator for future business insolvencies. According to the report, only 3.96% of businesses in Launceston defaulted in the 12 months to June 2022.
The article celebrated a number of new businesses opening in Launceston including San Churro Chocolateria, Delicia Acai, Pinot & Picasso, and the imminent opening of Du Cane Brewery and Dining Hall, the revamped Tatler Arcade, and the FermenTasmania Fermentation Hub at Legana.
On Tuesday, West Tamar Council approved the development of the FermenTasmania Fermentation Hub at Legana. The new 1800-square meter, $16 million hub will provide spaces for research, training and agritourism. It’s envisioned the hub will create up to 650 jobs and will see fermentation businesses flourish with access to the hub’s equipment and research facilities. It will be a new northern Tasmanian food entrepreneurial ecosystem. This is a very exciting development for northern Tasmania. Congratulations FermenTasmania!
At yesterday’s Tamar Valley Leaders Lunch (a joint initiative of Tamar NRM, the Rotary Club of Central Launceston, Hotel Grand Chancellor Launceston, Velo Wines, and the Chamber) Adam Mostogl, CEO and Chief Entrepreneur of the Van Diemen Project discussed Tasmania’s legacy as a ‘state of firsts’ (not to mention Launceston’s legacy as a city of firsts) and whether our state should again lead the way by aligning to the United Nations Sustainability Development goals, or going our own way?
After examining both options and allowing the audience to ask questions, a quick poll showed that the majority of the audience believed Tasmania should again lead the way and align our businesses and developments to the sustainability goals.
At first glance, this sounds like a huge undertaking, but if you visit the UN website, each goal is broken down into a number of targets, which many businesses and organisations are doing already. Why not visit the UN website and consider aligning your business and developments to the UN Sustainable Development Goals?