Cruise Terminal Funding Loss A Setback For The Region: Hunter Business Chamber

BY JARROD MELMETH

The New South Wales Government has made good on its pre-election threat by pulling $12.7 million funding from the Newcastle Cruise Terminal project.

The funding for the Port was announced in 2016 by former Premier Mike Baird, but last year the port revealed the project had suffered cost blow outs and the new building would not be able to serve as a home port for ships as a result.

Since revealing the cost blow outs, the NSW Government have refused to provide more money for the project.

"Port of Newcastle has been working on this project on behalf of the NSW Government on the basis of providing a facility that meets the cruise industry's needs while remaining within the funding provided.

"While disappointed construction of the terminal facility cannot proceed at this time, we respect that funding is no longer available," a statement form the Port of Newcastle said.

In a statement to 2NUR-FM, an Infrastructure NSW spokesperson said "the $12.7 million in Restart NSW funding remains available to Port of Newcastle should the project be delivered as per the original scope agreed in the funding deed."

Hunter Business Chamber CEO Bob Hawes has described the move as a significant setback for the region.

"The loss of funding is very disappointing, particularly for those tourism operators whoa re investing in facilities and services to improve our visitor economy.

"We are currently receiving around 28,000 passenger visits per year from cruise ships and many of those are overseas visitors.

"It is clear that the existing facilities are inadequate for a growing market and do not help create a good first impression for our visitors," Mr Hawes said.

The Port of Newcastle is acknowledged as an emerging tourism gateway in the Greater Newcastle Metropolitan Plan, which Mr Hawes says it should be treated as such.

Newcastle MP Tim Crakanthorp is accusing the government of short changing the project causing it to stall.

"We've known that Newcastle would need more than the poultry $12.7 million provided, when Eden, in the Minister for Transport's electorate is about to cut the ribbon on a $44 million cruise ship terminal," Mr Crakanthorp said.

What could have been. The designs for the new terminal released in 2017.

The current cruise terminal. Photo: The Newcastle Herald.

Hunter infrastructure must improve to capture Chinese tourism, the Hunter Business Chamber says

BY JARROD MELMETH

The Hunter Business Chamber says public infrastructure and mobile connectivity in the region must improve if we are to receive a share of the states $3.2 billion Chinese tourism boom.

The report, Getting Out There: Encouraging Chinese Tourism highlights the challenges faced by regional businesses in attracting those visitors and offers recommendations which can be adopted by Governments to capitalise on the Chinese tourism market.

Hunter Business Chamber CEO Bob Hawes cited a lack of transport infrastructure to and from Sydney as well as the unavailability of high-speed broadband as the main challenges holding Hunter businesses back.

"Certainly, there is a growing number of the Chinese tourists that are coming to Australia who are independent travellers, who don't rely on a group tour for the entirety of their stay and who might find it difficult to get outside of Sydney. It is also about the quality of tourist accommodation when the tourist does get here.

"But, most importantly, we know from the research that they rely heavily on their mobile devices for communication and information and particularly in regional areas, we are not geared up as well as the capital cities are, in that respect to have information available but also have that infrastructure in place so that they can use those facilities that they are used to and comfortable with to be able to research their trip and make decisions about where they are going and what they are doing," Mr Hawes said.

Mr Hawes concluded saying that capturing the Chinese market is not as simple as just producing a nice brochure, but that "the approach needs to be multi-faceted."

Hunter Business Chamber CEO Bob Hawes. Photo: Newcastle Herald.

Government Adamant it's Short Term Pain for Long-Term Gain in Newcastle

BY JESSICA ROUSE

Newcastle's Light Rail Project is completely different to the Light Rail Project underway in Sydney's CBD according to the state government.

It's why they disagree businesses on Hunter Street should be given rental assistance to compensate for the disruption the project has caused.

Sydney's project on George Street has been drawn out for some time and the rental reprieve plan for businesses was announced in August after sustained pressure with the project running overtime by years in some sections. The businesses in the identified construction zones had to prove their financial losses to be eligible.

Parliamentary Secretary for the Hunter Scot MacDonald said he knows businesses are struggling but it's not like the construction came with no warning.

"We told businesses as early as two years ago, that when this gets underway businesses will feel the pain, there's no question about it and at that time 18 months, 2 years ago I said people should be planning, they should be talking to their landlords, they should be talking to their customers and preparing themselves for it," said Scot MacDonald.

Some businesses in Hunter Street have reported losses of up to 30 per cent.

Hunter Business Chamber CEO Bob Hawes says he's not aware of the exact agreement Sydney businesses are in, but he feels Newcastle should be given the opportunity to have some rent relief.

"But we do believe that if the evidence is there and there is a strong case that can be built that we would hope the government would be objective enough to at least listen or look at it, and appreciate that there might be circumstance there that suggest it might be different to Sydney."

In the end, Scot MacDonald said it should be short time loss for a very long-term gain.

"look we'd like to believe that when we come out of this in 18 months or 2 years time or so since we are progressing through in blocks fairly quickly or reasonably quickly, that we come out at the end of and there is a city there, a CBD there, that people will delight coming to," said Scot MacDonald.

Hunter Jobless Rate At 18 Month High

BY IAN CROUCH

New figures show the unemployment rate across Newcastle and the Hunter Valley has surged to its highest point in 18 months.

The jobless rate for Newcastle and Lake Macquarie jumped to 7.2 percent in August, while in the Hunter Valley, the unemployment rate hit 7.6.

State Newcastle MP, Tim Crackenthorp has slammed the government for presiding over what he describes as a massive increase in the jobless rate, saying claims of jobs and growth are exaggerated .

However, Hunter Business Chamber CEO, Bob Hawes expects job numbers will improve thanks to the construction boom and rising coal prices.

Newcastle MP, Tim Crackenthorp

Hunter Business Chamber C.E.O, Bob Hawes

Small Businesses concerned over the NBN network

BY DANIELLE RIES

Hunter small business leaders have criticised small business minister Michael McCormack over inadequate broadband connections and that it might need revisiting.

Many businesses have been forced to relocate due to concerns over the NBN's speed and reliability, as the network was affecting their operations.

Hunter Business Chamber chief executive Bob Hawes says businesses aren't receiving what they want from the NBN network.

"The role out has been long anticipated and we know that is in progress and businesses as they go through the process of improving their performance and their offer is very much driven towards the digital economy without necessarily being able to distinguish individual circumstances.

"There's often a crossover when businesses go to do the upgrade that what their being offered by their providers doesn't meet their needs".

He also says the NBN network isn't quite living up to what they accepted.

"In some cases, people will have to relocate because of growth issues or to accommodate expansion or where their markets might be. But we are aware there are instances in the region where businesses have had to embrace a digital expansion and they've had to upgrade their facilities.

"And as a consequence where they are located, it hasn't been able to accommodate for their needs going forward".

Credit- The NBN website

UPDATED: Forgacs site getting a breath of new life

BY JESSICA ROUSE and DANIELLE RIES

The former Forgacs slipway at Carrington will be given a new lease of life repairing ships with French company Thales announcing their plans to join with the state government and take over the site.

The Hunter Business Chamber has today welcomed this announcement from the Deputy Premier John Barilaro as the developments planned will revitalise the region's key maritime hub.

Around 70 new jobs will be created with the company working in collaboration with the state government to invest $6 million into the rundown facility.

Initially, Thales say they'll be working on commercial ship repair and support, but the company might be looking for lucrative Navy contracts in the future.

Hunter Business Chamber CEO Bob Hawes says its great to see these facilities up and running in Newcastle again.

"The reinstatement of the former facility that ways there, which whilst it had a ship building capacity, we understand Thales intention is to use it for maintenance, but that is a big step given that we haven't had that opportunity or that operate within the port of Newcastle, now for a period of two years or more so it's fantastic to see it comeback".

He also says he's hopeful this project stays a local project.

"The investment that goes into this and this is certainly a good example of where the government has committed some funds and been able to leverage further input or further expenditure from the private to get it up and going.

"And we are really hopeful this can be very much a local production as it were, and re-engage a lot of the businesses around the Port."

Image ABC Newcastle Facebook page

NSW Budget 2017: What's in it for us?

BY JESSICA ROUSE

The Berejiklian government are basking in the glory of a $4.5 billion dollar surplus after Treasurer Dominic Perrotet handed down his first budget yesterday which included millions of dollars in infrastructure and roads funding for the Hunter.

The region will see $49 million dollars for roads, more than $205 million for Newcastle's revitalisation projects and funding boosts for many projects which have already started.

The key highlights include:
- $206.1 million in 2017-18 for Newcastle Light Rail
- $29 million for the New England Highway, Scone Bypass and $23.4 million towards Cormorant Road, Industrial Drive to Stockton Bridge in 2017-18
- $12 million to widen rail underpass for New England Highway, Gowrie Gates
- $5 million for New England Highway, Belford to Golden Highway upgrade planning
- $5 million towards building new hospital at Maitland
- $13.1 million for continued work at Muswellbrook Hospital
- $101.7 million towards 400 beds at Cessnock Correctional Centre
- $75 million in total Restart NSW funding for the Hunter Infrastructure and Investment Fund
- $43 million to remediate Newcastle BHP sites
- $11.8 million for Lower Hunter Freight Corridor

Treasurer Dominic Perrotet Image abc.net.au

But the budget is being labelled by local Labor MP's as "Sydney-centric" and even "mean" with claims many of the announcements aren't announcements at all, but re-announcements of funding and projects everyone already knew.

Newcastle saw $206 million for the light rail and revitalisation of the CBD, and just under $5 million for upgrades to the Hunter Street and Tighes Hill Tafe campuses, but MP Tim Crakanthorp has accused the government of simply recycling old promises.

"I think it's just smoke and mirrors which is what we've come to expect from the budget. It's a very Sydney focused budget from a Sydney-centric government. There are millions of dollars flowing into Sydney but critical infrastructure in Newcastle misses out. We're the second largest city in the state and we deserve better."

At the other end of town in Maitland, the new Lower Hunter Hospital only received $5 million towards what is a $450 million project with the completion date also pushed back to 2024, 13 years after it was promised.

MP Jenny Aitchison has labelled the government as having "no vision for the future" and says the people of Maitland have every right to feel let down by their government.

"They're boasting down here in Sydney about supposedly billions of dollars of surplus but they can only find $5 million for Maitland hospital and they're going to spend $500,000 on a couple of the schools in an electorate which is one of the fasted growing in the state. It's just not fair."

However, Hunter Business Chamber CEO Bob Hawes has welcomed the news of key investments into roads, rail, education, health and business.

He sees the continuation of funding for Revitalising Newcastle as a massive win to improve travel through the city centre, connect key activity precincts and connect the inner city to the foreshore.

Businesses generally will benefit from the budget as well, largely due to the cutting of red tape across the sector including a $7.5 million investment in the Business Connect Program as well as $96 million to the Jobs for NSW initiative to encourage business investment and growth and stimulate the labour market.

"We're encouraged by the continuation of investment in projects like Maitland's hospital and the revitalisation of Newcastle as well as a number of key projects and programs that link into business. So the continued investment by the government in business connect programs and $96 million for Jobs for NSW initiatives," said Bob Hawes.

Worker skills, or lack there of, deterring employers

BY JESSICA ROUSE

The NSW Business Chamber's inaugural Workforce Skills Survey has found employers in the Hunter are reporting high levels of skill shortages holding them back from employing new workers.

The survey measures business attitudes on employment, education and training issues and provides a comprehensive baseline for tracking future sentiment.

There appears to be an increasing inconsistency between what employers expect from their workers and the training they're getting through the education system.

"Businesses have indicated that the main reasons for reluctance sometimes relates to the cost, but also time factors of having key personnel in their organisations available to train the people and also some of the time it takes for some of the training programs and apprenticeships to be completed," said Hunter Business Chamber CEO Bob Hawes.

Businesses in the Hunter are also urging the government to take a serious look into how employees are trained, as there's an increasing lack of skills in new workers and a huge administrative burden on businesses to pick up the slack.

"There's a real need to look at how the pilot programs work, what apprenticeship models are around and whether they are effective and also being able to engage not only just with the young people looking at  the pathways but also the employers, parents and carers, the advisors and the educational institutions so that they can better understand the system of how it works and so we can get it working in practice," said Bob Hawes.

Bob Hawes says the latest Hunter Research Foundation report on the Hunter's economy shows businesses are looking for new ways to better their business, rather than employ new workers.

"It (businesses in the Hunter) had a big increase in its uptake of innovation and that in itself might express that people are now looking at other ways to push their business forward other than employing people which aren't necessarily a good thing in one respect but it is good in another in that hopefully the uptake in innovation will create alternative opportunities."