Tasmania Reports - November 2010

Last month, we wrote about our new board and it is exciting for me to have new members on board.

Sadly, we must now say farewell to one: Ross Donald Cubit, 1954 – 2010. A friend, long term CCF supporter and long term Tasmanian board member, he passed away on September 18 doing something he loved which was sailing.

Ross was well known in many different circles, as a caring happy go lucky person, who would help others at the drop of a hat. Many would know him as your external auditor.

At his funeral one of his children made the comment: “If we needed to see Dad, he would be at the Royal Yacht Club of Tasmania or out of the state.” Ross did enjoy a beer or ten. Smooth sailing Rosco.

National prequalification
CCF Tasmania has provided feedback to the working party on national prequalification for road authority registered contractors, on behalf of all Tasmanian contractors, small to large.

Below is our comment as sent on September 21. If you wish to read about national office feedback on behalf of all registered contractors in Australia, please visit www.civilcontractors.com

“Dear Elisa,
Proposed National Prequalification for Civil Construction (Road & Bridges)
Thank you for allowing the peak representative body of the civil industry in Tasmania to comment on the proposed harmonization of pre qualification throughout all states and territories.Civil Contractors Federation - TAS, in principal agrees with the proposal of national prequalification and sees this as a natural progression across borders.

Tasmanian preregistered companies that currently operate in our state do not oppose this process. There are however a few with of those who operate under trust arrangements that have an opposition to the transitional arrangements, costs and time lines.

Most operate in Tasmania only and are traditional family owned and grown businesses, with some having been in operation for over 70 years and have built their reputation on pride, service delivery, training, succession and development of family and employees alike, in order to ensure they provide DIER and other clients with quality end projects.

All have a proven track record with DIER in relation to any guarantees requested or capacity to complete the works.

Clarification and/or assistance moving forward will be required to assist trust arrangements in considering and/or completing the transition:

• Cost implication for trusts to move across into new entities will be significant and will involve a high level of legal service.
• Capital gains and the financial implication with the potential transition of assets.
• Employee related requirements and taxes.
• Valuations of assets will incur costs.
• Government taxes, both at a state and federal level.
• Advice of the corporate structures that maybe available to consider by Austroads.

All of these items will not be budgeted and will require new financing to be procured and implemented.
Question:
Are all contractors, including those who are not currently preregistered or are considering preregistration, aware of the full impact onto their businesses into the future and should other information sessions be held, but include representatives from Treasury and Finance and other related agencies, to answer questions or queries?

Elisa, even though it has been suggested, a two year transition period, given the significant costs associated, these actions may well see current preregistered civil contracting companies leave our industry which as we well know is a narrow market at the best of times, given the level of infrastructure funding available, both historically and forecasted into the future.

This we simply cannot afford and every effort should be made to ensure Tasmanian companies operate into the future and profits are retained in this state to allow us to grow and sustain the industry and Tasmania alike.
This will further impact on trusts to examine spending huge amount of unplanned funds for potentially small returns.

Other items that may be useful: Is the experience of other mainland companies (Queensland) which have been previously exposed to this process and are there any lessons that can learned and be used in Tasmania, or for that matter any state or territory?

Did this include any state and federal government financial assistance and is there a process already in place?

Are there any other options to be considered under Austroads that have not be offered or considered to date?

With the borders truly being opened, should contractor management systems, second party and third party be included? This should include agencies and their professional services, to ensure that safety, quality and environmental matters are examined and controlled by all working within our state and requirements are understood by all.

Elisa, I look forward to any other information you or your working party may be able to provide to assist Tasmanian based civil contractors with the transition or consideration of same.

New employee
I am pleased to announce that we have a new trainee, David Leamey. David has commenced and will assist Kayla in administration and customer service activities.
The branch has achieved steady growth over the last 12 months where we have gone from no employees to three and is looking at other employment opportunities.
Please make David welcome when you contact our office into the future.