Western Australia Report - March 2010

Bright economic outlook
Commonwealth Bank senior economist Michael Workman gave CCF WA South West members a personal briefing at their bi-monthly meeting in Busselton in February. 
Michael highlighted three key factors to watch in the coming months: business confidence surveys, employment trends and China’s growth outlook. Business confidence continues to grow and along with that confidence comes more hiring and a commitment to capital expenditure.
Access to credit, for some sections of our industry, may still be tight, possibly for another 3 to 6 months but overall the outlook for business confidence is positive. The point was well made that it is quite remarkable for Australia to be in the position it is, given dire economic circumstances less than 12 months ago.
Unemployment in WA is currently 5%, with state and national rates now trending down. Again this outcome is remarkable given forecasts for 7% or higher made only several months ago. Improved employment prospects will lead to more demand for residential housing and associated infrastructure which is great news for civil contractors.
China invoked quite a degree of discussion with many opinions shared by members. Michael explained that 20% of China’s 1.2bn people are already middle class, representing 240m consumers. Estimates are that that proportion could increase to 30 to 40% within the next 20 years which will add significantly to demand for Australian commodities including iron ore and coal.  
The overall economic picture is bright, notwithstanding sovereign debt issues in southern Europe and others still to be worked through in global banking systems.
Landcorp luncheon
The Nationals WA leader, Minister for Regional Development and Lands and Minister Assisting the Minister for State Development Brendon Grylls, will be our guest speaker at the CCF WA luncheon in April thanks to Landcorp.
In 2009 LandCorp launched its first reconciliation action plan and trialled reconciliation related criteria within its procurement practices. Minister Grylls will discuss LandCorp’s 2010 RAP, which implements the following criteria through its procurement practices, which include civil works contracts:
•    Working with indigenous people to build better relationships through partnerships or other arrangements;
•    Recognising and promoting indigenous culture and heritage; and
•    Creating and encouraging employment and personal and professional development of indigenous people, either internally or externally, through building capacity and enabling increased engagement with mainstream economies.
Event details will be circulated shortly.
Traineeships, short courses
Now is an ideal time to invest in key staff by adding to their training and development. Our Civil Train is offering Certificate III and IV traineeships and short courses, many of which attract generous government subsidies. For an obligation free assessment of your training needs, please call 9240 5233.
Member survey
It is our aim to meet all members before the end of the financial year. During the visit we’ll take a short survey so that we can better understand your needs and ensure our services are aligned to meet them.