june 2010 (frankston & mornington peninsula)

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A VOICE FOR BUSINESS: Frankston & Mornington Peninsula JUNE 2010 | $4.95 (GST INC.) 1800 155 486 www.pt.edu.au/sharpenyourskills Provider No. 121391 Australia wide since 2003 Funding for eligible participants is part of the Victorian Government’s ‘Securing Jobs For Your Future – Skills Deepening’. Sharpen Your Skills Learn the strategies to move ahead in the game Diploma of Human Resources Management BSB50607 Diploma of Management BSB51107 Enrol now! Nationally Recognised Dual Diploma’s on offer. Payment Plans available. Start immediately online. Only $500 per Diploma for eligible students. 1004 I’LL TAKE THE SEAROAD FERRY OPERATOR JOHN MACKEDDIE REFLECTS ON A BUSINESS LIFE BOUND TO THE BAYS GET IN A ‘STEW’ WIN A FAMILY PASS AND TAKE THE KIDS TO SEE ‘WOMBAT STEW’ AT FRANKSTON ARTS CNTRE Mates rate as endota’s winning team Sparring partners

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Page 1: June 2010 (Frankston & Mornington Peninsula)

A VOICE FOR BUSINESS: Frankston & Mornington Peninsula JUNE 2010 | $4.95 (GST INC.)

1800 155 486 www.pt.edu.au/sharpenyourskillsProvider No. 121391 Australia wide since 2003

Funding for eligible participants is part of the Victorian Government’s ‘Securing Jobs For Your Future – Skills Deepening’.

Sharpen Your SkillsLearn the strategies to move ahead in the game

Diploma of Human Resources Management BSB50607

Diploma of Management BSB51107

Enrol now! Nationally Recognised Dual Diploma’s on offer. Payment Plans available. Start immediately online. Only $500 per Diploma for eligible students.

1004

I’LL TAKE THE SEAROADFERRY OPERATOR JOHN MACKEDDIE REFLECTS ON A BUSINESS LIFE BOUND TO THE BAYS

GET IN A ‘STEW’WIN A FAMILY PASS AND TAKE THE KIDS TO SEE‘WOMBAT STEW’ AT FRANKSTON ARTS CNTRE

Mates rate as endota’s winning team

Sparringpartners

Page 2: June 2010 (Frankston & Mornington Peninsula)

BusinessTimes / ISSUE 1 / JUNE 2010

EMAIL: General: [email protected]

Editorial: [email protected]

Advertising: [email protected]

Artwork: [email protected]

INTERNET: www.businesstimes.net.au

BusinessTimes (Frankston/Mornington

Peninsula) is published 11 times a year by

BusinessTimes Pty Ltd and printed by Galaxy Print

& Design, 76 Reid Parade, Hastings, Victoria 3915.

Postal: PO Box 428, Hastings, Victoria 3915

Tel. 035979 7744 Fax. 035979 7944

Are you in BusinessTimes?For advertising, contact Marg Harrison

on 0414 773 153 or [email protected]

Make sure every business knows your business.

Publisher / Director

Editorial Director

Sales Director

Managing Director

Material production / Prepress

Design

TONY MURRELL

KEITH PLATT

MARG HARRISON

DAVID HILET

MELANIE LARKE

SIMON BROWN

MARLON PLATT

WE hope you find BusinessTimes interesting and enjoyable reading. It is written for and about business people in Frankston and Mornington Peninsula region, which makes it a first.

The magazine is being mailed to every business with an Australia Post address in Frankston City and the Mornington Peninsula Shire. It will be a voice for business – an opportunity for business people to share views, concerns and successes. This first issue features profiles on the endota spa founders (our cover story) and the ferry service, Peninsula Searoad Transport, plus columns on effects on mining of the Henry Tax Review, business strategy, health, new technology and even a review of the swish new Mercedes Benz E63.

BusinessTimes has become a sponsor of Frankston Arts Centre’s theatre season and as part of our association with this premier venue, we will be offering readers a chance to win free tickets to top class performances. See Page 24.

Carbon neutral aimThe publishing team is working toward making BusinessTimes a carbon neutral entity by reducing emissions as much as practicable and then joining a carbon offset program. Because the process is new to us, we figured it would be uncharted territory for other businesses, too. So, over the next few months we will document our progress for our readers. Our aim is for the business to be carbon neutral within 12 months, sooner if possible. In articles over the next few issues we will explain how we measure our carbon pollution footprint and how that footprint is to be documented or certified. Already we are noting fuel usage, waste material and the environmental costs of the recycled paper we are using. Also, our printer, Galaxy Print & Design, is working toward becoming carbon neutral within the same time frame.

Tony Murrell, Publisher

WELCOME WHAT / WHO / WHERE

2 | BusinessTimes | June 2010

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Page 3: June 2010 (Frankston & Mornington Peninsula)

WHAT / WHO / WHERENICHOL S CROW DERP R O P E R T Y S O L U T I O N S

EVERY PROPERTY HAS A SOLUTIONRichard Wraith 0419 564 528 Michael Crowder 0408 358 926

LEVEL 1/1 COLEMANS RD, CARRUM DOWNS VIC 3201

We provide tailored Property Solutions for our clients by thinking outside the square, in depth market knowledge and adding value.

• Final Land Release now selling• Land from 1,211m2-5,209m2

• Prices start from $212,819+GST• Near both Eastlink & Peninsula Link

After Hours: Josh Monks 0409 335 179

Four times the exposure

Occupy or invest

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PRIVATE SALE $1,300,000

NICHOLS CROWDER PROPERTY SOLUTIONSCOMMERCIAL/INDUSTRIAL

Real Estate Specialists

• 140M2 Securely Let to Slater & Gordon Ltd for 5 years from 01/02/10

• Returning $24,504 p.a. • 140m2 – Vacant• Potential return $45,000p.a.

After Hours: Richard Wraith 0419 564 528

After Hours: Michael Crowder 0408 358 926

9 PLAYNE STREET, FRANKSTONPRIVATE SALE $690,000

• Current return $65,213p.a • Potential Return $99,588p.a. • 4 Factories, 1 Title

• Total Building Area: 1,790m2•Scope for improvement & subdivision (S.T.C.A)

Your link to business growth in

Carrum Downs42-80 COLEMANS ROAD EASTLINK bUSINESS PARK

FROM $212,819+GST

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Page 4: June 2010 (Frankston & Mornington Peninsula)

CONTENTS / JUNE 2010

Sparring partners:The endota girls

I’ll take the Searoad:Big bay ferries

Departments Columns

Features

RecRuitment industRial commeRcialtRainingoutplacement

We Offer: • Reduction in labour cost • 24 hours personalised service • Flexible & negotiable ratescall - 9793 3425 Fax: 9793 3410 Email: [email protected] 1, 309-315 Thomas Street, Dandenong, Vic, 3175 10

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Melbourne IT Solutions has been owned andoperated by the same person since 1986.

Trust

26 Silkwood Rise, Carrum Downs 3201Phone:1300 667 102 I Fax: 03 9773 6987www.melbourneitsolutions.com.au

Computers

Hardware

Software

Printers

Fax Machines

Linux Design, Implementation and Support

Microsoft Server Certified Technicians

Peripherals

Internet Security

Scanners

Microsoft Certified Technicians

Network Setup & Design

We’ve got you covered!Computer & Office Solutionsfor Small Business

Over 20 Years Experience I Small Business Specialists I Finance Options Available

1008

News Bites 6News 11Infrastructure 16Local Government 18Theatre 24Property 28Technology 36Recruitment/Education 38

Market 34Managing 27Health 39Motoring 41

1230

Ferryman: John Mackeddie, managing director of Peninsula Searoad Transport.

Cover girls (right): Belinda Fraser and Melanie Gleeson, the dynamic duo behind the burgeoning endota spas business.

Pictures: Keith Platt

4 | BusinessTimes | June 2010

Page 5: June 2010 (Frankston & Mornington Peninsula)

Melbourne IT Solutions has been owned andoperated by the same person since 1986.

Trust

26 Silkwood Rise, Carrum Downs 3201Phone:1300 667 102 I Fax: 03 9773 6987www.melbourneitsolutions.com.au

Computers

Hardware

Software

Printers

Fax Machines

Linux Design, Implementation and Support

Microsoft Server Certified Technicians

Peripherals

Internet Security

Scanners

Microsoft Certified Technicians

Network Setup & Design

We’ve got you covered!Computer & Office Solutionsfor Small Business

Over 20 Years Experience I Small Business Specialists I Finance Options Available

1008

Page 6: June 2010 (Frankston & Mornington Peninsula)

Property pick-upPROPERTY developers Lend Lease Ltd, Mirvac Ltd, Stockland, Ltd, Walker Corporation Ltd and Goodman Group Ltd have committed more than $15 billion to new projects in recent months, The Australian Financial Review reported in mid April.The commitments signal a pick-up in the sector as banks increase lending and developers take advantage of Australia’s recovering economy, the paper says.Lend Lease global head of de-velopment David Hutton said the industry was seeing “an accelerated level of activity.”“We believe now is a good time to increase our [development pipe-line],” he told the AFR.

Confidence upNATIONAL Australia Bank’s Monthly Business Survey and Economic Outlook for March 2010 showed busi-ness confidence remaining at very strong levels – but edging lower in March. More importantly busi-ness conditions (outcomes) strengthened noticeably in March with all sec-tors contributing.After a slower start to 2010, activity levels now the strongest since Janu-ary 2008, NAB reported The survey said the Reserve Bank of Australia was expected to raise rates to 5.25 per cent by the end of 2010 – that is, on the tighter side of neutral.Timing of increases would be very data dependent, but tentatively NAB expected rate rises in May, August, September and December.“We still see a peak of 6 per cent in mid 2011. Inflation forecasts are now 2.5 per cent by late 2010 and a touch higher in 2011 (similar to RBA).”

Businesses see an end to the crisisSMALL and Medium Enterprises (SMEs) - the pumping heart of the Australian economy - are claiming rising optimism with a little over a third of a survey group last July expecting increases in performance or activity over the six months to last Christmas.

Also reflecting improvements was the NAB’s March 2010 SME quarterly survey

Access Management Corporation’s survey for News Community Media used responses to questions concerning three areas of operation – revenue/turnover, profitability and employment intentions – to gauge confidence.

The survey is on the money in at least one respect – among those showing the biggest rise in confidence were real estate agents and subsequent housing sales in Victoria proved their optimism was well placed

While all sectors reported increasing confidence there were cautionary signals as businesses saw their biggest challenges in the immediate future as sales, cash flow, profit, competition and debt.

The surveyors mused over whether SME’s concerns meant that financial reserves, like cash or debt facilities, were under pressure.

Certainly most SMEs expected business costs to rise in the six months to December, 2009.

NAB’s SME quarterly survey showed small business conditions the most favourable for 18 months because of increasing consumer confidence. The bank survey showed profit expectations the best for a year following positive economic news, including a 20 per cent increase in the ANZ jobs series and a slight increase in consumer confidence reported by Westpac.

The survey found SMEs with an annual turnover of $2 to 3 million recorded the

biggest improvements in the December 2009 quarter, with that index jumping 13 points to 17. Businesses with turnover between $5 and 10 million rose by six to 14, while those with turnover between $3 and 5 million increased by five points to eight.

Overall, the business conditions index for SMEs grew from five points last year to 13, while the profitability expectation index lifted eight points to 35.

NAB Business executive general manager Geoff Greer said the result was due to surging consumer confidence, which the survey recorded as jumping from negative 23 to a positive reading of 21 points from the June to December quarters.

“Seventy per cent of all Australian workers are employed in small and medium-sized businesses - that’s nearly seven million Australians and their families who rely on this sector of our economy. “So, the more positive conditions we can see in the results of our latest survey are great news for the Australian economy.”

The survey also noted the most pressing issues for SMEs were future demand, cash flow management, access to qualified staff and rising interest rates.

The survey found access to credit was listed as the main concern for only 10 per cent of SMEs, while taxation and legislative issues were cited by 8 per cent as the most worrying issue.

A FRANKSTON Council working group will trial iVolunteer, a corporate volunteer program for city employees, for 12 months starting July 1.

iVolunteer is the brainchild of the city’s Emerging Leaders Program from last year.

It will be aligned with the new Frankston Volunteer Resource Centre (VRC), offering extra promotion for the centre as well as providing a ready-made pool of extra volunteer resources. Council will effectively act as a pilot “corporate

volunteer” organisation for VRC, saving the need to find its own volunteer opportunities.

Council’s working group assumes that 10 per cent of staff will participate, equating to an ‘in-kind’ contribution of about $30,000.

A survey has indicated that 86 per cent of respondents would support an employee volunteer program and that 82 per cent would be willing to volunteer outside normal working hours.

City trials iVolunteer program

BUSY BITES

6 | BusinessTimes | June 2010

Page 7: June 2010 (Frankston & Mornington Peninsula)

Factory applications

NINE planning applications for factory/warehouse buildings were lodged with Frankston City Council during April. All but one of the application were for developments in Carrum Downs. The council’s May Panning and Submis-sions committee received a total of 78 applications.

CPI creep AN AAP survey of 13 economists in April forecast headline Consumer Price Index – the key measure of inflation – to have risen 0.8 per cent in the quarter, for an annual pace of 2.8 per cent.

Growth goodAUSTRALIA’S chief execu-tives overwhelmingly believe the government’s forecast population growth will have a net positive effect on the economy, their industry and company, and the future of the country as a whole.

– Business Spectator Accenture CEO Pulse survey

PD allocationFRANKSTON councillors can spend up to $2000 a year on professional development training approved by CEO George Modrich and mayor, Cr Christine Richards.The allocation is for registra-tion fees, travel, accommoda-tion, meals and any other costs. Council has referred $12,000 to the 2010-11 budget for the program.

20-year serviceFRANKSTON Council’s organi-sation development manager Peter Blood and community in-formation and support coordina-tor Vicki Martin chalked up 20 years with the council in April.

CONTRACTS valued between $50,000 and $200,000 approved by Frankston City in April: • Boundary Rd public lighting installation (United Energy) $149,760• Jubilee Park installation of New Purple Pioe water Service (A Grade Irrigation) $69.000• Ballam Park installation of New Purple Pipe Water Service (VIS Water Services) $53,000• Ballam Park Soakage Pit (E & M Labour Services)$50,000• Beach St. East toilet (Ducon Maintenance) $179,000

Contracts entered in April following closed council decisions:• Boundary Rd, Carrum Downs road construc-tion (Bayport Industries) $1,652,000• Potts Rd stage 2 (ParkinsonPty Ltd) $535,198.73• Aged Care software (Database Consultants Australia) Commercial-in-confidence• Cleaning public toilets and barbecues (New Age Cleaning Services) Commercial-in- confidence• Provision of cleaning services for civic buildings (Academy Services Vic) Commercial-in-confidence

Contracts for council work

Thumbs downfor government

BUSINESS attitudes to all levels of government are through the floor, according to a survey carried out for a community newspaper group.

Federal, State and Local governments recorded a low satisfaction rating among businesses in Access Management Corporation’s survey for News Community Media.

In Victoria 37.7 per cent of Small and Medium Enterprises (SMEs) are unsatisfied or very unsatisfied with government performance.

State governments have the lowest level of satisfaction (8.1 per cent). The Federal government approval rating among SME owners is 10.4 per cent, while local government scored an 18.5 per cent satisfaction rating.

State• 46 per cent of respondents are dissatisfied with state governments around the nation.• 45.9 per cent returned a neutral response, while only 8.1 per cent expressed satisfaction.• Victorian respondents returned a net -31.7 per cent satisfaction rating (41.2 per cent unsatisfied, 9.5 per cent satisfied).• Across Australia SME concerns with state governments include:- govt. utility efficiency, with 55.5 per cent identifying it as a major issue.

- payroll tax at 37.5 per cent was second most significant issue.- tender processes with state governments remain an issue for 23.5 per cent of SME owners.• Other state issues include the abolition of state taxes including fuel, land and stamp duty, improved public transport, deregulated trading hours, health and hospitals, increased community grants.

Federal• 71 per cent highlighted need for interest rate cuts to flow through to business (The same percentage are odds on to say now that the full whack of bank interest rate rises should NOT be passed on to their customers)• 56 per cent indicated that the GST process required streamlining/simplifying.• 29 per cent wanted overhaul (lowering/abandonment) of Capital Gains Tax.• Other issues included unfair dismissal threshold, aged care funding, skills shortage (including education/training), lower tax rates for small business, small business stimulus, fuel rebates, increased superannuation caps, stop to price gouging by big retailers, banks and fuel companies.

Municipal government• 41.3 per cent of respondents are dissatisfied with the local council; 40.2 nuetral; and 18.5 per cent satisfied.• Victoria at 22.6 per cent expressed most satisfaction.• Rates, fees and charges are the biggest beefs (73.4 per cent)• Road maintenance was considered unsatisfac-tory by 36.4 per cent of SMEs• Rubbish collection, 18.6 per cent; Transfer station access, 9.4 per cent.

June 2010 | BusinessTimes | 7

Page 8: June 2010 (Frankston & Mornington Peninsula)

8 | BusinessTimes | June 2010

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Page 9: June 2010 (Frankston & Mornington Peninsula)

June 2010 | BusinessTimes | 9

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Page 10: June 2010 (Frankston & Mornington Peninsula)

Martha Cove, Safety Beach Priced from $635,000

220 - 222 Main Street Mornington Victoria 3931Ph: 03 5976 5900 Fax: 03 5975 9075 Email: [email protected] www.jlbre.com.au

The Commercial & Industrial team, based at Jacobs & Lowe-Bennetts Mornington, have been hard at work.Under the guidance of Company Directors, Peter Skewes and Tony Grundy, our well respected Property Management team: • is entrusted with the largest

managed portfolio on the Mornington Peninsula;

• provides ongoing advice and support;

• has assisted in the wealth creation of our valued clients;

• utilises up-to-date technology software systems; and

• strives for a seamless and stress free experience for all property owners.

With an enviable reputation for getting the job done, our Commercial & Industrial sales and leasing team have effected sales of over $10 million in the last financial year, with many more

exciting projects ongoing. These include office suites, showrooms/warehouses, retail premises and industrial land. If you want to be successful in owning and developing Commercial and Industrial property, Jacobs & Lowe-Bennetts’ Commercial & Industrial team are who you need to contact today.

Commercial Department: 5976 5916Email: [email protected]

Mornington’s leading Commercial & Industrial Agents

• 2/17DianeStreet,Mornington-$226,500• 1/14ProgressStreet,Mornington-$350,000• 1521Frankston-FlindersRoad,Tyabb-$307,000• 1/25DavaDrive,Mornington-$242,000• 350MainStreet,Mornington-$1,010,000• 22VirginiaStreet,Mornington-$390,000• 6/19BruceStreet,Mornington-$280,000• 3/15KenjiStreet,Mornington-$390,000• 5/315MainStreet,Mornington-$408,000

LOOK WHAT WE’VE BEEN UP TO…CommercialandIndustrialSaleseffectedin2010

600 - 632 Clipper QuayAbsolute Waterfront Blocks• 665m2 waterfront allotments with

15m frontages• 12m berth entitlement included• Peninsula Link to open 2013• 3 years owners corporation fees

also included in purchase price• Walk to beach and public transport• Pre-approved building guidelines• Design your own home and engage

your own builder

Stuart Cox 0417 124 707 or Steve Walsh 0407 789 877

1013

Page 11: June 2010 (Frankston & Mornington Peninsula)

NEWS

June 2010 | BusinessTimes | 11

MORNINGTON Peninsula Shire Council is seeking to draw a line around Morning-ton’s urban creep toward the green wedge along Bungower Rd

Council wants planning ministry approval for an amendment to Mornington Peninsula Planning Scheme to control development around the Bungower Rd and Racecourse Rd inter-section.

Significant development proposals – including two retirement villages, a residential aged care facility, a camping and caravan park and housing – prompted council to draft the Mornington North Outline Development Plan (ODP).

However, it is allowing stakeholders more opportunity for input into proposed amendment C143.

The council’s development assessments committee was to consider this information on May 17 along with a

report on incorporating environmentally sustainable design principals into the ODP.

The plan uses rezoning and development plan overlays to balance urban growth pressures and the transition from urban development of the township to the surrounding green wedge.

Also, the ODP will protect Mornington Racecourse and its related activities as well as provide opportunities for low density residential living.

Two landowners, AMP Capital Investments and Australian Unity, have opposed imposition of development plan overlays. AMP owns 16 ha north of Bungower Rd between Racecourse Rd and Baldock Rd and wants to use the land for housing. Australian Unity has plans for retirement living which council supports.

St Macartan’s Primary School already has relocated to the area.

Property pick-upPROPERTY developers Lend Lease, Mirvac, Stockland, the Walker Corporation and the Goodman Group have committed more than $15 billion to new projects in recent months, The Australian Financial Review reported in mid April.

The commitments signal a pick-up in the sector as banks increase lending and developers take advantage of Australia’s recovering economy, the paper says.

Lend Lease global head of development David Hutton said the industry was seeing “an accelerated level of activity.”

“We believe now is a good time to increase our [development pipeline],” he told the AFR.

Spending downAUSTRALIANS spent less than expected in March as the Reserve Bank’s raft of interest rate rises reined in household spending. Retail sales rose by 0.3 per cent in March to $19.92 billion, seasonally adjusted, following a revised 1.2 per cent drop in February, seasonally adjusted, Australian Bureau of Statistics data show. Economists had expected a 0.7 per cent increase for March.The Reserve Bank has raised interest rates six times since October, lifting them from a 50 year-low of 3 per cent, to 4.5 per cent last month. Retail spending has also eased off as the effects of government cash handouts during the financial crisis lose their effect.

100 housesFRANKSTON City council has approved a zoning change to allow about 100 houses to be built on the site of a disused sand quarry in Langwarrin.

The 22.1 ha site at 269-315 North Rd was mined by Aidan Graham Quarries until October last year.

Under the new zoning, significant remnant vegetation, including heathy woodlands, valley heathy forest and swamp scrub, will be preserved as a conservation area. Also, council will establish a recreation reserve on another part of the site.

The planned development is within the existing urban growth boundary.

Mornington’s bid tocorral urban creep

Bungower Rd at the intersection with Racecourse Rd, Mornington. Photo: Keith Platt

Martha Cove, Safety Beach Priced from $635,000

220 - 222 Main Street Mornington Victoria 3931Ph: 03 5976 5900 Fax: 03 5975 9075 Email: [email protected] www.jlbre.com.au

The Commercial & Industrial team, based at Jacobs & Lowe-Bennetts Mornington, have been hard at work.Under the guidance of Company Directors, Peter Skewes and Tony Grundy, our well respected Property Management team: • is entrusted with the largest

managed portfolio on the Mornington Peninsula;

• provides ongoing advice and support;

• has assisted in the wealth creation of our valued clients;

• utilises up-to-date technology software systems; and

• strives for a seamless and stress free experience for all property owners.

With an enviable reputation for getting the job done, our Commercial & Industrial sales and leasing team have effected sales of over $10 million in the last financial year, with many more

exciting projects ongoing. These include office suites, showrooms/warehouses, retail premises and industrial land. If you want to be successful in owning and developing Commercial and Industrial property, Jacobs & Lowe-Bennetts’ Commercial & Industrial team are who you need to contact today.

Commercial Department: 5976 5916Email: [email protected]

Mornington’s leading Commercial & Industrial Agents

• 2/17DianeStreet,Mornington-$226,500• 1/14ProgressStreet,Mornington-$350,000• 1521Frankston-FlindersRoad,Tyabb-$307,000• 1/25DavaDrive,Mornington-$242,000• 350MainStreet,Mornington-$1,010,000• 22VirginiaStreet,Mornington-$390,000• 6/19BruceStreet,Mornington-$280,000• 3/15KenjiStreet,Mornington-$390,000• 5/315MainStreet,Mornington-$408,000

LOOK WHAT WE’VE BEEN UP TO…CommercialandIndustrialSaleseffectedin2010

600 - 632 Clipper QuayAbsolute Waterfront Blocks• 665m2 waterfront allotments with

15m frontages• 12m berth entitlement included• Peninsula Link to open 2013• 3 years owners corporation fees

also included in purchase price• Walk to beach and public transport• Pre-approved building guidelines• Design your own home and engage

your own builder

Stuart Cox 0417 124 707 or Steve Walsh 0407 789 877

1013

Page 12: June 2010 (Frankston & Mornington Peninsula)

12 | BusinessTimes | June 2010

Page 13: June 2010 (Frankston & Mornington Peninsula)

COVER STORY

June 2010 | BusinessTimes | 13

Spa-taculargrowth forschoolmates

ALTHOUGH it is some years since they finished school, the girls at the heart of the endota spa business must sometimes feel as though they never left the playground.

Belinda Fraser and Melanie Gleeson have built a business based on making women feel good about themselves.

The 60 plus endota franchises do cater for men, but the move towards the masculine is very much a latter day innovation that will take a while before it rivals the services to women.

The team helping the endota girls run their continually expanding empire is firmly based on the old girl network - the old Woodleigh School girl network, to be exact.

“There’s a big team of girls including an interior designer, a writer and a graphic designer. We all went to school together,” Gleeson says.

“We liked our friends and thought ‘they’re all capable, why not’. It’s fun.”The two school friends trade looks and memories when asked to explain

how endota began and quote their alma mater’s motto like a mantra: Respect for self, for others and the environment.

The decision to set up a spa for women was made in 2000 by Fraser and Gleeson while “sharing a cask of wine, sausages and brie at a barbecue”.

Fraser: “Melanie arranged for us to have a facial at Eltham and we said ‘we can do this’ and the rest is history.”

They took over a bed and breakfast in Mt Martha, cooking and cleaning for overnight guests and running two rooms for beauty treatments and massages.

One of the first obstacles they faced before opening was overcoming 14 wary neighbours who lodged objections with Mornington Peninsula Shire.

“They thought there was a brothel moving in next door,” Fraser says. “We talked to them and the eventual vote at council was 4-3, we nearly didn’t get off the ground.

“We held a fundraiser opening for East Timor charging $10 for people to get in. The police came the next day to tell us it was against the law to charge, but it was all over by then.”

Fraser, who studied economics at Monash University before working in real estate and Gleeson, a day spa manager and hair and make-up artist in TV, did a small business course in B&Bs and came to the conclusion that 12 rooms were needed for it to be viable.

WORDS/IMAGES: KEITH PLATT

Health and beauty experts Melanie Gleeson, Tabatha Carruthers and Belinda Fraser at endota’s Rosebud factory warehouse.

Page 14: June 2010 (Frankston & Mornington Peninsula)

14 | BusinessTimes | June 2010

But beauty and wellbeing was the main game and after two years endota had outgrown its Mt Martha “house” and they looked for rooms in Mornington.

Real estate agents initially shied away from the two 25 year olds, but a shop was finally found, financed and set up with a $5000 credit card and office equipment given as presents for their birthdays or Christmas by friends and relatives.

They still list one of their biggest thrills in business as driving away at night and seeing the lights of their first shop in the rear vision mirror.

The move to Mornington was opportune as the growth of endota coincided with the beginning of a boom in spas – centres of health and wellness which were replacing traditional beauty salons.

“We started stalking hotels asking ‘can we have a bit of space for a spa’,” Fraser said. “When we opened at Lindenderry in Red Hill it was the first retreat spa.”

Moonah Links was next, with endota opening a spa in time for the 2003 Australian Open.

By the time their fourth spa opened endota was running half of Victoria’s eight spas.

There are now 400 in the state and while endota’s market share has dropped, it is an Australian market leader with 60 franchises up and running and another 15 territories sold or getting ready to roll.

The endota quality control begins and ends with the franchising code of conduct. Patrons entering any endota spa will feel comfortable, as if they have entered another world where everything can, for a short time, be left outside. Every endota spa is different but has a familiar feel, so patrons can be assured of receiving the same treatment whether going around the corner or interstate.

The business plan adopted by endota was five years ago expanded to making the beauty products used in each of the franchises and outlets.

There are 26 products in the brand range made with certified organic ingredients “all made in Victoria”.

“We’re passionate about our organic

endota co-founder Melanie Gleeson, left, is passionate about the company’s move into making and marketing “product” while partner Melinda Fraser, right, loves the buzz leding up to opening a new franchise.

COVER STORY

Page 15: June 2010 (Frankston & Mornington Peninsula)

June 2010 | BusinessTimes | 15

skin care range. Each product goes through a test panel of 200 including business owners and therapists,” Gleeson said.

“Some products have been crossed off the list as a result of the panel’s response and others have been reformulated four of five times before being approved.”

The endota “product” is now stocked at 29 David Jones outlets throughout the country in a deal that involves Gleeson and Fraser running spas at two DJs stores.

In a corporate partnership, one per cent of the profits from the products goes to Bush Heritage Australia, a group which buys and restores land of high conservation value to protect Australia’s biodiversity.

The tie-up is a good fit with endota’s organic, ethical and moral image.

Since the beginning the marketing has been aimed at women. An early decision – suggested by writer Kellie Langeliers, another Woodleigh alumni – to dispense with capital letters on the website and printed material “appealed to women and gave us a softer image”, says Fraser.

The website also cleverly mixes branding with familiarisation and

“membership”: endota-amazing, endota-holics, in-spa-ration, environmendota and endortal, the business owners’ portal.

An early enthusiasm to enter business awards saw endota listed as finalists in both the 2004 Telstra Businesswoman of the Year awards and 2007 Ernst & Young Entrepreneur awards. Now, the individual franchises are making their mark in various business awards.

The franchisees attend an annual conference and this year saw 119 owners and their partners go to Fiji.

Fraser, who enjoys surfing, and Gleeson, yoga, have young families and last year took on two new endota partners, Kylie Leopold (franchises in New South Wales and South Australia) and Clare Bastow (Melbourne and Chadstone).

But the two founders say they are as enthusiastic now as when they first tossed the idea around at the barby.

Fraser: “I love being at a spa, preparing it the week before opening. Everything is buzzing.”

Gleeson: “I’m addicted to the roller coaster of being in business.”

Keys to endota’s success:• Hard work• Persistence• Clear goals and vision• Never let each other down• Like the industry you’re in

“I’m addIcted to the roller coaster of BeIng In BusIness.”

Page 16: June 2010 (Frankston & Mornington Peninsula)

INFRASTRUCTURE

16 | BusinessTimes | June 2010

Freeway hubPENINSULA Link has opened an ‘info hub’ in Frankston so that anyone interested can follow the $759 million project.

As well as seeing displays, citizens may speak directly with members of the project team. The hub features a large floor map, updated photos and videos of construction and samples of the materials that will be used for noise walls and other structures.

The hub is at Suite 3, Level 1, 405 Nepean Hwy, Frankston.

It is open to individuals and groups 10am-4pm Wednesday to Friday and the third Saturday of each month from 10am to 1pm. Group bookings and presenta-tions outside these hours can be arranged by calling 8562 6800.

Get in touch with buildersFREEWAY builder Abigroup has set up a community contact line and email address for anyone wanting to know more about Peninsula Link. Call 1300 453 035 or email [email protected]• Publicly-listed ConnectEast Group Ltd says construction of Peninsula Project will lead to extra trip demand and underpin traffic growth on EastLink, following Southern Way being awarded the construction contract for the untolled Peninsula Link project. ConnectEast is the owner and operator of EastLink.

The company says that, once complete, Peninsula Link will greatly improve travel times for drivers who are heading to or from Frankston and the Mornington peninsula.

Road contractBAYPORT Constructions has won a $1,652,455 Frankston Council road-building contract for Boundary Rd, Carrum Downs. Work is being carried out under a special charge scheme.

ADMINISTRATION of the Port of Hastings will transfer to the Port of Melbourne Corporation (PoMC) from July 1 under Victorian government legislation.

The new management structure, according to the government, will aid the complementary development and operation of both ports.

The port’s land and infrastructure – except for the Bluescope Steel facilities – is currently managed by Patrick Ports which also manages the port’s waters and channels.

Under the integration proposal, responsibility for the waters and channels and for administering the ‘channel

operating agreement’ will be transferred to the PoMC which will also become the new owner of the land and infrasructure.

The PoMC will determine its presence in Hastings after the July 1 takeover.

At present the Port of Hastings Corporation headquarters is in Hastings.

The first stage of Hastings port expansion – three new general cargo berths – is still two to three years away, according to Ralph Kenyon, Port of Hastings Corporation’s chief executive

officer. The berths will be built on land at Long Island, between the existing BlueScope and Esso jetties.

The Port Land Use and Transport Strategy (PLUTS) released by the State Government in August last year stipulated a comprehensive environ-mental impact assessment at each stage of development, retention of land use planning zones around Tyabb and removal of the proposed Gippsland rail corridor. The PLUTS had input from the Western Port community.

Mr Kenyon remains keen to have local involvement at every stage of expansion.

“While ultimate construction of any new berthing facilities is still some time off, the corporation recognises that significant contributions can be achieved through the ongoing involvement of the community during port planning,” Mr Kenyon said.

Port activity slowed last financial year with lower trade volumes and fewer ships tying up, mainly because of the financial crisis and a fire which closed part of the Bluescope plant for several weeks.

Port trade volumes declined from 2.95 million tonnes in 2007/08 to 2.66 million tonnes in 2008/09. Total ship visits declined from 256 in 2007/08 to 235 in 2008/09.

All steel trade declined during the year mainly due to the Bluescope fire.

Revenue under the Port Management Agreement with Patricks was $874,000, exceeding budget by $70,000.

Port trade is expected to be lower in 2009-10.

THE FIRST STAGE OF HASTINGS PORT EXPANSION – THREE

NEW GENERAL CARGO BERTHS – IS STILL TWO TO THREE YEARS AWAY

July takeover forPort of Hastings

Page 17: June 2010 (Frankston & Mornington Peninsula)

COMMUNITY research indicates a high level of in principle support for a Stony Point to Cowes vehicle ferry service, according to Mornington Peninsula Shire Council.

Draft concept plans were exhibited for public comment in March and April.

Council said there were concerns about the siting, scale and impact of facilities, but reported strong interest in the potential economic benefits that might result from the project. Economic viability and the protection of heritage values and the marine environment were other concerns of community members commenting on the ferry service plan.

The latest of feasibility studies in 1995 and 2003 recommended terminal sites north of the existing pier at Stony Point and Cowes jetty. Further information on the

draft plans and the project can be found on the websites of Bass Coast and Mornington Peninsula shires. Frankston Leader reported on April 13, 2010 that while Phillip Island residents and holiday home owners were organising a campaign against the ferry proposal, the mood on the other side of the bay at Stony Point was more positive.

Crib Point Advisory Group secretary Rosemary Evans was reported as saying: “It could put Crib Point on the map. We’ve been forgotten for some time.”

Phillip Island Conservation Society president Margaret Hancock, on the other hand, described an Easter Monday protest as “absolutely splendid”.

John Mackeddie, managing director of Peninsula Searoad Transport, operator of the Sorrento-Queenscliff ferries gives the proposed service a good chance of success.

Car ferry support No developer for marinaFRANKSTON’S marina proposal has been put on hold after failing to attract a developer suitable to the council

It is now a year since the announcement that State Planning Minister Justin Madden amended the local planning scheme allowing 300 wet berths, 400 dry berths, at least 30 public wet berths, a 60-unit motel and 600 car spaces.

The State Government will not contribute to the marina, variously costed at between $80 and $90 million.

Cr Colin Hampton, the mayor at the time, said he hoped construction would begin by the end of the year (2009).

Frankston Beach Association secretary Graeme Lyell expressed long-standing opposition. He said the marina was the wrong development for Frankston.

He added that the marina plan was 40 per cent bigger than a previous proposal, which had been deemed commercially unviable.

June 2010 | BusinessTimes | 17

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Page 18: June 2010 (Frankston & Mornington Peninsula)

LOCAL GOVERNMENT

18 | BusinessTimes | June 2010

THE future of hundreds of small blocks inside the Mornington Peninsula’s green wedge areas are in limbo.

Although Mornington Peninsula Shire gave the go-head for a house on a two hectare block at Tuerong near Moorooduc, the Victorian Civil Administrative Tribunal (VCAT) has stepped in to stop the development.

The VCAT said the land in Coolart Rd was not big enough for sustainable agriculture - in this case cattle raising - and was too close to a chicken farm.

The land is part of an 11-lot subdivision dating back to the 1920s which was included in the green wedge defined by the State Government in May 2004. While there are 4750 houses in the green wedge, the owners of the $475,000 block assessed by VCAT bought the land several years after the government’s freeze on development.

Liberal MP for Mornington David Morris told a rowdy public meeting last month that the state should buy up and consolidate the 715 small lots within the green wedge if it wanted to retain the peninsula’s rural areas. If the shire was genuine, he said, it should try to change the planning scheme. Meanwhile, angry landowners say their asset backing for loans and chance of selling are being jeopardised as banks revalue the green wedge blocks downward. The meeting voted for a delegation to meet with the shire while councillors re attending workshops to explore different uses for green wedge land.

Green Wedge housing doubt

FRANKSTON Council is spending more than $126,000 for a public relations company to lobby state and federal governments in the lead-up to this year’s elections. The council hopes the company CPR will be able to persuade MPs to revive the city with cash for several projects. On the wish list is infrastructure in the city centre, an aquatic centre, transport interchange and public safety. An art competition for schoolchildren is one of the ways the PR firm will try to reverse the city’s negative image.

MPs to face PR blitz

The long standing Mornington accountancy practice known as MBA Business Solutions has undergone various changes, improvements and a face-lift. It recently became the first Mornington Peninsula practice to join the Paris Group of firms, and accordingly has instant access to a wide range of experts and consultants in associated and allied fields.

Jason Beare, practice principal and nine-year veteran of MBA, advises “The practice can now offer its clients a seamless service for all their needs; advice in direct property investment; asset protection; business insurance; consulting in relation to R&D activities; as well as taxation and accounting services for all types of entities.” Jason is a presenter on Tax Structures and Asset Protection Strategies at seminars in the local area.

Pat Mannix, the Principal of the Paris Group said he was pleased that MBA has joined the Paris Group. He said “MBA’s culture and ethics fit closely with our profile”. Pat himself has a particular specialty in Property Warrants; and is a regular writer for Australian Property Investor magazine.

Pat went on to say that the Paris Group now numbers five suburban accounting practices; and also offers such diversified services as Self Managed Superannuation Fund Loans; Self Managed Superannuation Fund Audits; Asset Finance; complete in-house independent Financial planning; accredited mortgage brokers; property planning and estate planning.

Recently, Pat and Jason welcomed senior accountant Dereen Wallace, formerly of a Frankston firm, and she brings a wealth of experience and knowledge to the MBA team, joining accountants Amy Bignell and Irena Lioudvigova; and support staff Rachael Waterhouse, Maggie Verhallen, Melinda Kalkbrenner and Kerry Febey.

Dereen said “The practice combines the best of both worlds. It is small enough to be friendly and very client-focused; but we have immediate access to the expertise of the entire Paris Group of firms.”

Dereen is a member of the Monash University Faculty of Business and Economics Advisory Board; and a member of the Community Advisory Committee for Peninsula Health. Many Mornington and Frankston business people will remember her from her eight year involvement in conducting the Frankston & Mornington Peninsula Business Awards.

The practice remains very conveniently situated at

342 Main Street Mornington; (not in Paris at all!)

and warmly welcomes all existing and new clients.

TELEPHONE 5970 8100, email: [email protected]: www.mbabusinesssolutions.com.au

MBA goes to Paris!

BOAT builders and repairers at Sorrento are fighting plans that would force them to use launching ramps at Rye.

If adopted, the $1.4 million scheme being considered by Mornington Peninsula Shire means that boats being fixed by the businesses at Sorrento would be launched and retrieved at Rye. The boats would be taken by road to Sorrento.

Consultants hired by the shire said “as its names suggests, the intended users of the Sorrento Recreational Boating Precinct are recreational boaters”. The Rye launching area needs upgrading before it can cope with the extra flows of commercial users.

Rocking the boat

Page 19: June 2010 (Frankston & Mornington Peninsula)

June 2010 | BusinessTimes | 19

people in �nance & accountingpeople in manufacturingpeople in logistics & warehousingpeople in transportpeople in sales & marketingpeople in administrationpeople in property & law

03 9781 4442 | www.ppr-recruitment.com.audolphin house | 405 nepean hwy frankston victoria

1019

FRANKSTON Council has agreed to overhaul its complaints handling procedures but will retain the internal ombudsman role.

The city says it is aiming to create a more responsive and transparent system. It will use its website to further publicise how residents can lodge complaints.

The council agreed that a separate ethics committee was not needed. Among officers’ recommendations adopted by council were to adopt an integrated approach to fielding all complaints, including those made

Review of complaints

THE INTERNAL OMBUDSMAN HAS

ACCESS TO ALL COUNCIL DOCUMENTS, SYSTEMS AND STAFF IN

CONDUCTING INVESTIGATIONS.

through councillors, and a reporting process that identified trends and ‘hot spots’.

The new process will begin in the 2010/11 financial year.

The role of the Internal ombudsman, undertaken by the internal auditor, is independent of line management and provides advice and recommendations directly to the chief executive officer.

The internal Ombudsman has access to all council documents, systems and staff in conducting investigations.

A complainant who does not believe that the Internal ombudsman is independent can approach the Victorian Ombudsman’s Office which has the power to investigate a wide range of local government matters.

AFTER years of uncertainty and political intrigue, private business is about to get a toehold at Point Nepean, near Portsea.

The State Government is expected to release a draft management plan in July which will include plans for hotels, a conference centre, cafes and restaurants inside the national park.

If adopted in September after public consultation, the plan will invite businesses to lease historic buildings near the former quarantine station, once the centre of the army’s cadet training school.

Some 1970s barracks buildings may be torn down and replaced by a four and a half star hotel with sweeping bay and national park views.

Lower rated accommodation will be catered for in other, less high profile buildings.

Parks Victoria, which gained control of the park in July 2009, says it will listen to both business and the public in its efforts to develop visitor facilities.

Plans for Point Nepean flagged at various times by the former Howard government included subdividing and selling land for housing, a university campus, a nursing home and a respite centre for families with disadvantaged children.

New walking and cycling tracks have been opened at the park and entry will be free from July 1.

Point for businessViewpoint: The view from a building earmarked for development as a hotel at Point Nepean.

Page 20: June 2010 (Frankston & Mornington Peninsula)

local government

20 | BusinessTimes | June 2010

Frankston Council’s attempt to limit – or even reduce – the number of poker machines in the municipality begins in earnest this month when it votes on an updated gambling policy.

The council is preparing to combat a potential increase in gaming machines when new legislation in 2012 enables clubs and hotels to bid for pokies currently owned by Tabcorp and Tattersalls.

Council may have a stronger argument if it has to front the Victorian Commission for Gambling Regulation (VCGR) and Victorian Civil Administrative Tribunal (VCAT) in relation to the new legislation if a draft of its policy released for public comment in April drew negative reactions to gaming machines.

For added firepower against an increase in pokie numbers, the council has referred $25,000 to the 2010-11 budget for a community wellbeing survey.

In 2008/2009 almost $74 million went through 596 poker machines at 10 venues in the city, $10.5 million more

than council collected in rates.Based on the criterion of 10 pokies for

every 1000 adults, Frankston’s limit is 954 machines - 358 more than now in pubs and clubs.

In its stand against more poker machines, council says that available research, confirmed by the most recent Productivity Commission Draft Report (2009), shows most problem gambling is related to electronic gaming.

The report found that five per cent of adults play gaming machines weekly or more often. Around 15 per cent of this group would be classified as problem gamblers with another 15 per cent experi-encing moderate risk.

Although most serious pokie related losses are incurred by a proportionately small number of people, gambling related stress is experienced by a larger number of people, like family and friends.

Based on the 2006 ABS census, Frankston had an adult population of 73, 359. Five per cent (3667) of this group, according to the Productivity Commission draft finding, would use pokies once a week or more with around 15 per cent (550) considered serious problem gamblers and a further 15 per cent at risk.

Based on these numbers, there are 1100 adults at serious risk in Frankston, an estimate regarded as conservative by Gamblers Help. But if families and friends are factored in, the number of people affected or at risk significantly increases.

Gamblers Help Frankston has a waiting list for crisis and financial counseling and most of their clients have problems with gambling associated with poker machines. The help grops says that waiting lists are a concrete indicator of the extent of gambling and related harm.

In 2008-09 almost $74 million went through 596 poker machines at 10 venues in Frankston City - $10.5 million more than the city collected in rates. To Frankston councillors, that’s way too much. The city fathers are positioning themselves to apply the brakes to one of the most popular forms of gambling.

City moves to limit pokies

Page 21: June 2010 (Frankston & Mornington Peninsula)

June 2010 | BusinessTimes | 21

STreeTS in central Frankston now carry a 40kmh speed limit. The new limit – supported by Frankston Council, police, Frankston Business Chamber and Peninsula Bus Lines – covers Wells, Playne, Beach, Thompson and Keys streets and all other internal roads within the central activities district.

Limits on Nepean Highway, Fletcher rd and Davey St remain unchanged. Frankston Mayor Christine richards said the move was important given the revitalisation of the central business area where vacancy rates are falling.

“A key to continuing that progress is increasing the number of visitors to the CAD, and making the streets safer for pedestrians is an important part of that. The CAD precinct is also an area where a high level of parking activity takes place, and this change will minimise hazards to road users,” Cr richards said

Vicroads has approved the change, effective 24 hours a day.

ViCToriA’S civil justice system may be grabbing broader planning powers than the State Government intended, according to the Mornington Peninsula Shire Council.

Shire planners are questioning decisions made by the Victorian Civil and Administrative Tribunal (VCAT) in relation to amendments of existing planning permits.

The council is making a plea for the state parliament to clarify planning laws following several VCAT decisions, including the T’Gallant winery restaurant decision on February 10 when the tribunal amended a permit increasing the number of patrons to 274 when the shire’s planning scheme set a limit of 150.

in a letter to the planning minister, council claims that VCAT decisions based on one case decided by a single judge in the Supreme Court represents a departure from underlying principles supporting town planning in Victoria.

“Parliament’s intent in allowing for planning permits to be amended has been interpreted in a broader sense than (it) may have intended, and ... VCAT prefers decisions which give it broader powers than government policy would otherwise allow,” the council stated.

The policy and legal dilemma can be resolved either by higher courts clearing up the ambiguity, or alternatively – and preferably, according to the council – Parliament making its intent clear in the Planning and environment Act.

“This is necessary to provide greater certainty in the planning field,” council said. The Act is currently under review.

VCAT power grab

Central shopping centre slowdown

FrANKSToN Council is lobbying State MP Alistair Harkness to improve closed circuit television (CCTV) surveillance by police. Chief inspector ron Cooke said an upgrade of CCTV – software and two new cameras – would mean more effective police surveil-lance around the business centre’s trouble spots.

Council, police seek CCTV upgrade 1021

What would happen if your business partner died?

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Could you afford to pay them out?

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refinance?

Or, if your partner became too ill to work, how long could you afford to

pay them?

For professional advice on protecting yourself with Business Succession

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www.riadvice.com.au

Page 22: June 2010 (Frankston & Mornington Peninsula)

local government

22 | BusinessTimes | June 2010

MorningTon Peninsula Shire Council has flagged rate increases in line with Consumer Price index rises plus two per cent over the next three years.

The municipal charge will remain steady at $130, according to council’s three-year Strategic resource Plan, a mandatory document under the Local government Act.

The resource plan has been included in the Shire Strategic Plan adopted in July, 2009.

Under its resource plan, the shire is predicting that it will reduce debt over the next three years while maintaining liquidity.

it expects staff numbers to increase by two to 649 while the wages bill could jump by $7.2 million in line with the shire’s enterprise agreement.

Borrowings of $6 million have been

Rates up in three-year planpenciled in over the next two financial years for the planned Southern Aquatic Centre, but council noted that the project’s timing had not been confirmed.

The shire is predicting a modest cash surplus by the end of the 2012-13 financial year.

Under its four-year Shire Strategic Plan, the council is setting its ‘big picture’ program of investment, including drainage to address increases in flood risk associated with the effects of global warming; structure plans to facilitate more sustainable urban development; and ‘transport connections’ projects to reduce car dependence and improve access to services.

“This strategic plan reflects the process of translating our broad vision and mission into tangible, specific actions,” CEo Dr Michael Kennedy said.

“it is an accountability document.”Strategic priorities in the plan

which directly affect business include affordable community housing; climate change risk management; contribu-tory schemes to support infrastructure projects; recognition of the green wedge zone’s value for agriculture, conserva-tion, recreation and tourism; Port of Hastings land use and transportation planning; transport network development; sustainable economic development with emphasis on tourism and jobs growth; and a cost effective waste management and recycling service.

Part of the shire’s plan is to attract “new and innovative green investment” as well as small entrepreneurial businesses while maintaining the “desirability of the peninsula as a place to work, enjoy and live”.

THE Victorian PgA Championship at Sandhurst will continue to receive major sponsorship from Frankston Council, despite a poor report card on the event’s ability to generate publicity for the city.

The council will reduce its sponsorship from $15,000 to $10,000, plus $10,000 in kind, for the 2011 event and expects tournament organisers to work harder on media exposure for Frankston.

Council invested $23,000, plus $14,000 in kind, for the first year of sponsorship. of that, $8000 was spent of banner and signage that can be used again. A report to council stated that about 60,000 viewers watched onE HD’s television coverage across the three days. The Victorian PgA Champion-ship is a four-round tournament attracting some of Australia’s leading players and emerging talent who are forging their careers on the US, European, Asian or nationwide tours. The PgA has made a commitment that the event will be staged at the Sandhurst Club until 2014. This year’s event included tournaments for juniors, women as well as the title Pro Am and a charity dinner.

Go for golf title

Page 23: June 2010 (Frankston & Mornington Peninsula)

June 2010 | BusinessTimes | 23

Two-hour parking spaces in central Frankston will be reduced to an hour or 90 minutes in the wake of a study started two years ago.

The new restrictions are designed to increase the availability of short term on-street spaces and increase the use of off-street parking. Parking enforcement will be “significantly increased” to improve car park turnover and prevent overstaying.

The study, started by council and the Department of Planning, Communities and Development, was followed up by consultants Cardno Grogan Richards when council wanted more information. Study recommendations will be implemented by council in consultation with traders, the central activities district advisory committee and an internal working group of interested counillors. Council also has agreed to develop a car parking strategy for the central business district. Council said the study identified capacity at present but found that there was a need to better utilise the spaces.

Shorter parking times

FRankSTon Council may not be able to wipe out graffiti, but it may find it easier to erase the scrawls from city signs. Council is midway through a six-month trial to specially coat about 1135 signs so that graffiti can be removed. although the coating does not stop graffiti, it aids easy removal. The cost of coating is about $20 a sign. The city estimates its has about 18,000 signs, of which 1135 are in the trial area.

Graffiti wipe-off

1022

Inghams saves 800 jobs

Fire destroys the the Ingham chicken processing plant at Somerville on January 11.

MoRe than 800 jobs were preserved in the region when chicken meat producer Inghams announced it would rebuild the Somerville processing plant that went up in flames on January 11.

Inghams’ announcement just a month after fire destroyed the Grant Rd processing facilities followed urgent discussions between Inghams, the State Government and Mornington Peninsula Shire Council.

on March 22 the council signed a memorandum of understanding (MoU) with Inghams. effectively agreeing to secure the broiler farm industry on the Mornington Peninsula and upgrading the

road network to the processing plant.while improving access for trucks

servicing Inghams, the council has asked its engineers to investigate mechanisms to restrict usage of B-doubles along Grant Rd from the processing plant into Somerville township, thus preserving residential amenity. Part of the MoU is continuing to plan alterations to the Baxter-Tooradin Rd and Grant Rd roundabout to all for B-double truck movements and upgrading truck access to the plant.

The local councils, VicRoads and Inghams’ management will develop a long-term plan for a B-double route from Peninsula Link to the plant.

Page 24: June 2010 (Frankston & Mornington Peninsula)

24 | BusinessTimes | June 2010

ARTS

A Garry Ginivan Attraction

Wombat StewA Fabulous Family Show

June: Wednesday 30 @ 1pm & 6pm*

Based on the book by Marcia K Vaughan and Pamela Lofts,this “true-blue-dinky-di-big-aussie-musical” is perfect for theSchool Holidays! A “mouth-watering” combination of storytelling, mime, music, dance and puppetry, Wombat Stewcomes complete with blobs of mud, creepie crawlies and abig bubbling billy can...

Frankston Arts CentreTickets & Enquiries: 9784 1060 orwww.artscentre.frankston.vic.gov.au * Auslan signed

THE book Wombat Stew, written by Marcia K Vaughn and illustrated by Pamela Lofts, became an instant hit when first published in 1984.

The show coming to Frankston Arts Centre on June 30 has been adapted for the stage by Helpmann Award-winning duo Gary Young and Paul Keelen, and produced by children’s musical theatre impresario Garry Ginivan.

“It’s always exciting to mount a new production, and one that has been specifi-cally designed to tour to regional and remote areas,” Ginivan says. “Theatre-goers in these areas get to see it long before any of the big inner-city venues – normally it’s the other way around.”

Ginivan’s previous production was the acclaimed Possum Magic, which played to more than 80,000 people around the country. He says the adaptation of Wombat Stew is long overdue. “It’s a children’s book loved by generations and the perfect subject for another true-blue Aussie musical.”

Putting on a stage show like Wombat Stew isn’t easy: a troupe of six performers, along with the crew, will visit almost 50 venues around the country this year, giving almost 150 performances.

But Ginivan insists it is well worth the

energy. “I’m most looking forward to the audience reaction, especially the children, many of whom will be having their first experience of music theatre,” he says. “I hope it will be a memorable one!”

Book on 9784 1060.

A ‘stew’ that’s overdue

Win a family ticket… send your name & address on an envelope to: FAC’s Wombat Stew/Business Times Competition, Frankston Art Centre, PO Box 490, Frankston, 3199, drop your entry at the Box Office, or email your contact details to [email protected] Add “Wombat Stew/BusinessTimes Competition” in the subject line. Closing date: Friday 11 June; draw Tuesday 15 June. Please indicate if you do not wish to join FAC’s mailing list.

ONE FOR THE KIDS

Page 25: June 2010 (Frankston & Mornington Peninsula)

FRANKSTON ARTS CENTRE . . . P A R T N E R I N G T H A T W O R K S

C A L L G I L L I A N 0 3 9 7 8 4 1 0 5 6 O R G I L L I A N . T H O M P S O N @ F R A N K S T O N . V I C . G O V. A U

TA K E A T O U R : A R T S C E N T R E . F R A N K S T O N . V I C . G O V. A U

T H A N K C L I E N T S , E N T E R TA I N P R O S P E C T S , V I P PA C K A G E S , M E E T T H E S TA R S , P R E - S H O W D I N I N G ,

R E WA R D S TA F F, B U I L D T E A M S , I C O N I C L A N D M A R K , 2 7 5 , 0 0 0 V I S I T O R S , 8 0 0 S E AT T H E AT R E ,

C U B E 3 7 – A R T S T O S E E A N D D O , F U N C T I O N C E N T R E , TA R G E T N E W A U D I E N C E S , B U I L D B R A N D

WHEN THE FOOTY DOESN ’ T QU I TE HIT THE MARK. . .

ENTERTAIN IN A DIFFERENT LEAGUE

1006

Page 26: June 2010 (Frankston & Mornington Peninsula)

One of the most consistent things I have noticed over the years when working with business owners to develop their business is that few have any sort of system in place.

A business system (for our purpose here) is a clearly defined set of processes and procedures to enable you to provide consistent quality goods and services to your market. It need not be hard to implement and indeed you don’t need to do all the work yourself. You can enlist your staff to help produce the documentation while you manage the overall project. Specialised software can make this even easier.

One method I have found produces reliable results involves five simple steps:1. Create your organisational chart2. Create position descriptions/contracts3. Flowchart all parts of your business (Workflow)4. Create processes, checklists and other documentation.5. Compile into a manual (paper or online)

Creating an organisational chart is akey way to start truly understanding (and helping everyone else understand) the roles of everyone in your organisation.

Position descriptions/contracts: specify the primary purpose of each role, general functions and tasks, the knowledge required and any challenges in the role such as physical or environmental challenges.

Flowchart your business: Sit down with your key people and, initially in an abbreviated form, document ALL the steps that occur from prospecting to final delivery of your product or service.

Create processes: A process has an input and an output. A number of processes put together comprise a system. You may have a sales process, a collections process and a building-a-widget process. Each process needs clear documentation as to how it is done

Finally assemble all your documentation together into a company manual, divided into sections related to various departments in your business. There is easy-to-use systems documentation software out there which can provide a consistent look and feel to your manual.

Tim Greig is a local ActionCOACH Business Coach and business advisor.

Work to a system

Tim GriegBUSINESS COACH

So many business owners have been “bitten” by those who claim to be experts or even gurus in their field, only to face huge up-front fees or failed delivery on promises. If this is you, often these experiences have scared you off starting any new projects for fear of being either overcharged or getting very little out of the project. You are twice as wary of even the ethical and responsible operators, but how are you to know before you take the plunge? In a world where the three most popular websites; google, facebook and youtube; did not even exist 10 years ago, it may all seem a bit overwhelming. But if you take a step back to stop and think of the bigger picture and go back to the fundamentals of marketing planning it does tend to become a bit easier. Our approach has always been to make marketing as simple as possible for our clients, steering the topic of conversation back to the likely commercial impact of a marketing program. After all, if it doesn’t make an improvement to your bottom line at the end of the day, what have you really achieved?

IF you follow some very simple rules, a well planned marketing campaign is likely to generate additional awareness, enquiries, revenue and margin. Whatever your business is the process is the same... What are the dynamics in your market category? Market size, trends, competitors, customer behaviour…

Analyse the basic 5 P’s of marketing – product/service, pricing, promotion, placement (distribution) and people. • What are your company’s core competencies – what do you do better than anyone else? • What are your objectives? How much extra business do you want by when and in what categories? • How can you get to where you want to go? • What actions need to be taken by who and by when?

And the cycle begins again…what has changed since we launched the campaign? If you follow these basic principles of marketing we don’t make the promise that it will give you all the answers, but it will give you a head start over those who don’t take the time to look before they leap.

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Jim Schaefer is the approachable and experienced director of The Schaefer Group, a Carrum Downs based marketing & communications agency that has helped clients realise their potential for the last 10 years.Contact Jim on 03 9770 8880 for your free 1 hour consultation. www.salesmarketingmelbourne.com.au

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26 | BusinessTimes | June 2010

Page 27: June 2010 (Frankston & Mornington Peninsula)

Some say it is just another annual plan covering your financial expectations for the business – or it is something you do to keep banks and accountants happy.

Having a clear strategy should be so much more than this. It should be the set of ideas, concepts and targets that invigorates every person working in your business.

Ideally, development of strategy should be a process involving everyone in the business so the best ideas are integrated and debated before deciding which potential strategic elements will deliver the best outcomes. Of course, the business owners should have the final say in how this is done, but harvesting the best ideas from all employees can mean a more effective implementation process.

This process starts with the business owner taking time out from running today’s business to talk to employees about tomorrow’s dreams. Depending on the size and geographical spread of the business, there are a range of methods for collecting this information. In small businesses, it could be done personally by the business owner, ideally with the support of a staff member who can note and collate everyone’s ideas. Alternatively, it could be done with a meeting that gets the whole team together, maybe after normal business hours. The focus must remain on the development of the key strategies that will become your business’s thumbprint – that mark which differentiates you in your market.

There are wide-ranging issues to consider when starting the journey to develop strategy: probably the best starting point is your customers. Who will they be, why will they use your product or service, and why will they keep coming back to you rather than using a competitor? Answering these questions will take some research, some personal contacts with potential customers, and

the development of some ideas on how to differentiate your business.

For many small businesses, the challenge is to compete with the major stores which have a very clear business model of low price always. So, survival rests with the small business competing on a basis other than price. An example is the small specialist general store competing on quality of products and service. This can be managed well in a small business. However, there is a real challenge if the business grows because this style of operation requires excellent well trained staff who can handle customers very well.

Sustainability is a buzz word these days and many businesses have been in existence for much longer than the few years that this concept has been developing. When considering the development or redevelop-ment of strategy, a business leader needs to understand sustainability and the specific implications for their business. A sustainable business is one which has moved past a simple focus on financial outcomes to a broader consideration of the environmental impacts and social impacts of their activities.

Today, environmental considerations include understanding your climate change impacts and the potential to use this to create a business advantage. For example, can you run your business with a neutral or positive impact on climate change? Within a few years, every business will need to understand this but you may be able to

turn this to competitive advantage by being ahead of any government legislation. Just starting to work out all of the activities and/or products that you use in your business is a challenge, but then you should work through how to minimise these impacts and the offset any residual carbon emissions.

Social impacts have often been considered by small business leaders through their support for community activities, clubs and sporting teams. In today’s increasingly transparent world, it is important to understand all of the potential social issues that can make or break a business. This should extend to Human Rights issues including any products your business is sourcing, especially from developing countries. While most developing countries compete mainly on the basis of price, there is always a risk that they are producing these products using poor social practices.

One technique to highlight business strategic issues is a “future search”. This is generally done with a group of people moving their thinking forward to some agreed future time, say between three and 15 years. Ideally, a longer time frame is selected to ensure that current topical issues do not swamp other emerging issues that could be much more important in time.

Strategy has many facets: there are many ways to develop it and none of this is easy. Once you have distilled all consid-erations into the simplest set of concepts possible, then they should become the cement that binds all of your employees together to optimise your business. Every employee should understand how their job connects to the business strategy and why the work that they do can enhance the business results (and help their own job security, too).

Running a small business is always a challenge, but one that most of us really love. We know our customers, we understand our business issues and we are immersed in daily transactions with suppliers and customers. So why do you need a strategy?

The first strategy isto involve everyone

Hamish Petrie*Business Consultant

*Hamish Petrie had a 37-year corporate career including 29 years with Alcoa Inc. His last position was as VP–People and Communication for the global Alcoa corporation based in New York, NY. In this role, he was a member of the Executive Council which set global strategy and policy for Alcoa’s 18 Business Units and reviewed business performance. He specifically set HR policy, compensation policy, and approved the selection and compensation for the top 350 executive positions. He also led the redevelop-ment of Alcoa’s executive development and talent identification programs. Since retiring from Alcoa in 2005, Hamish has focussed on family and recreational opportuni-ties while maintaining his business activities as a consultant and mentor through his network of business contacts and friends. He can be contacted at [email protected] or on 0404 345 103.

‘This process starts with the business owner taking time out from running today’s

business to talk to employees about tomorrow’s dreams.’

Managing

June 2010 | BusinessTimes | 27

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PROPERTY

28 | BusinessTimes | June 2010

Commercial gainCommerCial property is expected to perform strongly over the next year with office space outperforming retail and industrial sectors. National australia Bank’s first Quarterly australian Commercial Property survey in late april found that capital values were expected to rise across all commercial sectors.

However, the best investment opportu-nities will be in the office sector, according to NaB’s survey.

Rents returnlaNdlords in melbourne and sydney should benefit from the expected recovery of the commercial property market over the next seven years, according to reports. Two Bis shrapnel reports on the 2010-2020 outlook predict office markets are stabilising in the wake of the financial crisis, with melbourne rents doubling by 2015.

By Michael crowder

FeW things in life give industrial property a kick along like roads. like the old saying goes ‘investment follows the infrastructure’.

abigroup has just started construc-tion on the 27km Peninsula link bypass which will connect mount martha to Carrum downs. This trip will only take 17 minutes. a saving, according to its website, of 40 minutes (in peak hour), which is incredible.

Just the same as other infrastructure projects in the state like eastlink, Western ring rd and Pakenham bypass, this infra-structure will drive property values now and until the freeway is complete.

When the eastlink contract was awarded in late 2004, Carrum downs industrial land prices jumped 40 per cent.

residential property clearly benefits as well, although it’s industrial property in particular that expects the strongest growth. Why? Because it allows

businesses to avoid traffic congestion and get their products to customers quicker.

With population forecasts showing that the mornington Peninsula is expected to grow by an extra 45,000 people in the next 15 years, this infrastructure is vital all i can say is thank goodness it’s “toll free”.

On the freeway to change

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quarter page : Crabtrees

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SHOUT OUT LOUD IF YOU ARE CONSIDERING SELLING OR LEASING

IndustrIal • CommerCIal • retaIl

PROPERTY TAX / WEALTH PLANNING

June 2010 | BusinessTimes | 29

AccounTAnTs and advisors often remind clients this time of year that tax time is just around the corner and that we should be making sure that we do what’s necessary so as to maximise our tax outcome.

Well isn’t a few weeks before year end a little late for such thoughts and actions?

sure, some final super contributions and some well directed expenditure can provide a benefit. However, if you are receiving the majority of your advice from your accountant at this time of year it may be time to ask why?

There are numerous advantages to constantly reviewing your position instead of just doing it for tax planning at year end. Examples often seen are:

• Having up to date information for lending applications when an opportunity presents itself. Banks seem to favour businesses which demonstrate they are organised and keeping abreast of issues.

• The managers of your business

(including you) remain well aware of any variances that may exist between projected and actual profit margins, overhead expenses, collections and cashflow. This awareness in a timely fashion provides the benefit of being able to manage the impact, both positive and negative.

Being up to date in business is increas-ingly becoming the norm, and rightly so. In a competitive environment having information at your fingertips relating to the performance is a necessity not a luxury and may be the very thing that sets your business apart from those of your competitors. A bookkeeper who is well guided by your accountant should be seen as a good step in this direction.

By Allan Williams, a principal of Flinders Partners Group who holds an MBA from Deakin University. He consults widely in a diverse range of industries to small and large business alike.

Ready for tax timeIn his best-seller of the 1980s The E-Myth, Michael Gerber focused on the dilemma facing the owner-operators of small businesses: how to stop working in their businesses and start working on the business instead. This remains a problem.

owner-operators neglect personal wealth planning because their focus is entirely on their business. This can have devastating consequences for their eventual retirement where the business is relied on exclusively, or by default, to provide for the owner’s retirement.

Key areas in which small business operators can significantly improve their wealth accumulation include focusing on:• Actively using superannuation as a strategic tool as opposed to a “grudge” payment that has to be made for compliance purposes.• clearly separating and managing private wealth as separate to the business assets and deliberately diversified into other areas.• Developing a plan and key performance indicators (KPIs) of personal wealth as they would (or should) in their business.

structuring in the most appropriate and beneficial manner is vital to personal wealth planning just as it clearly is when structuring business affairs. Effective structuring provides flexibility for changes of personal circumstances while also maximising oppor-tunities for tax minimisation, asset protection and, where possible, changes to legislation.

By Ryder Widdowson, CFP, senior advisor at Flinders Partners Financal Services, an expert in self-managed superannuation and wealth management.

Managing wealth

FrAnKsTon council has dropped plans for a local law amendment giving its officers power to instruct people to move on. council abandoned the idea after the state government included “move on” powers in the summary offences Act 1966. The local law was seen as a way to remove potential troublemakers from the streets of central Frankston.

However Victorian premier John Brumby

had beaten council to the punch by several months, announcing last August that police would be given authority to direct people to move on from a certain area where there was a fear of a breach of the peace The new police powers were legislated last December. The new provisions have been discussed with Frankston police and will be used to help improve the amenity of business district and the city generally, council said.

‘Move on’ law bundled out

Page 30: June 2010 (Frankston & Mornington Peninsula)

Peninsula Searoad managing director John MacKeddie

FEATUREFEATURE

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Captain Jack:

I’ll take the SearoadWords: tony murrell / images: Keith Platt

June 2010 | BusinessTimes | 31

The 40-minute ride is pleasant on those flat sea, sunny days and the 60 m. white ferries, MV Queenscliff and MV Sorrento, are often accompanied, at least part of the way, by dolphins playing in the bow waves.

The open upper decks are a magnet for passengers keen to catch the rays on warm days. It’s like you’re really on holiday, basking and looking around at the views.

And that’s exactly how Searoad Managing Director John Mackeddie wants you to feel.

I should say at the outset that I call him John because that’s how he introduced himself 30 years ago when I was reporting the hovercraft ferry service he was about to launch, linking the Mornington Peninsula to the city.

Over the years I noticed when his name came up that he had transformed from John to Jack.

“Yes, it says Jack on my business card,” he tells me in an interview at the ferry ticket office in Sorrento.

Then, after a few moments: “I prefer John – I’m named after my grandfather John Fullarton Mackeddie (a well known Melbourne doctor) – I think I’ll go back to that.” And then he smiles.

Although his grandfather died just before Mackeddie was born, he knows a great deal of the man who owned Manyung in Mt eliza and drove to the The Alfred daily in his Rolls Royce.

“he taught himself German while holding the book on the steering wheel as he drove up the highway,” Mackeddie said.

It’s a feat the grandson greatly admires.Mackeddie, 65, signed on as a skipper

when the ferry boat company was launching 23 years ago – yes, that far back. he was among those who piloted the red and white Peninsula Princess back and forth eight times a day, carrying up to 28 cars each crossing. The record payload, Mackeddie recalls, was 33 cars. It was a basic service: most passengers just sat in their vehicles on the open deck and waited, not like today with lounges, television, comfortable chairs and cafes.

Mackeddie, however, still speaks with affection about the Princess which made about 22,000 crossings, including a five-year period without missing a trip.

Today, Peninsula Searoad nears icon status among southern peninsula businesses as the ubiquitous Persil-white leviathans patrol the head of the bay, docking hourly on both sides.

A couple with their car can cross Port Phillip near the Heads for $63 aboard one of Peninsula Searoad Transport’s ferries, ogling the clifftop mansions of Melbourne’s rich and famous as the vessels slide along the Sorrento and Portsea shoreline before turning and heading for the sentinel Norfolk pines of Queenscliff.

Page 32: June 2010 (Frankston & Mornington Peninsula)

Each can carry 80 cars and about 750 passengers.

In 2001, Mackeddie and his partner Sydney merchant banker John Barnes built the latest addition to Searoads’ fleet, the 750 tonne MV Sorrento, at Southern Marine Shiplift, a Launceston company they bought in the late 90s in partnership with marine engine company Cummins. SMS can lift and service vessels up to 2500 tonnes.

Mackeddie then commissioned a 35m luxury cruiser Platinum which has been in charter around the Australian east coast since taking three and a half years to build at the SMS yard.

Mackeddie describes Searoad’s growth over the years as “steady and healthy”.

However, at the moment the business is not kicking on as it should and the boss cites several reasons.

“Some authorities don’t understand the importance of the ferry service to tourism and the economy of the Mornington and Bellarine peninsulas, so there is a lack of consideration and support.

“The feeder roads to the ferry are under par – the network on the Mornington Peninsula side has been throttled. You can’t cater for through traffic by putting a bicycle lane along Point Nepean Rd, cutting out what used to be a third traffic lane.

“Don’t get me wrong – I’m all for cycling as a sport, pastime and healthy family pursuit.”

Mackeddie added that cheap domestic air fares had made a huge difference and a lot of coastal tourism operations were suffering.

“For the cost of a tank of petrol, you can get two air tickets to the Gold Coast.

I don’t know how long that can last.”Meanwhile, the company’s workforce is

stable at 70, including casuals.Mackeddie remains optimistic about

Searoad’s future. “We are always looking at improvements to make the trip more enjoyable and comfortable for our passengers,” he said. Plans to upgrade facilities on both sides of the bay include air bridges so foot passengers can board directly onto the upper decks from second level additions to terminal buildings.

For 20 years Mackeddie has harboured the desire to relocate the Mornington Peninsula terminal to Quarantine Station in what is now Point Nepean National Park.

It would cut the crossing time by about half, reduce costs and, more importantly, makes fares cheaper.

He describes it as a win all round – and the park’s upkeep would be susidised by the service. This is a low-key but perpetual campaign by a man who’s survival in the maritime industry indicates an ability to stay focused.

Also, Peninsula Searoad is looking at the proposed Stony Point to Cowes car ferry, which Mackeddie believes is likely because the state government “is keen”.

“It’s not going to be a pot of gold, but I would envisage something like Peninsula Princess, with a capacity of about 28

vehicles, would do the job initially,” he said.

The siting of terminal locations would require careful consideration, he added.

On another issue, Mackeddie is supporting a Bellarine community push which started last year to have the ferry route classified a highway in order to attract government funding, like the Spirit of Tasmania route from Melbourne to Devonport.

“I’m happy to talk to any people interested in hearing how the ferry service could be improved through cheaper fares and support from all levels of government,” he said.

A wanderer in his youth, Mackeddie was back and forth to Western Australia doing numerous jobs and owning several businesses before tying up with Peninsula Searoad.

From crop-sowing in WA –35,000 acres in four months – to welding, panel beating and heavy equipment driving, the Mornington Peninsula bred handyman had his first taste of the marine industry working a dredge in Esperance harbour in the mid 60s.

Back in Victoria, Mackeddie was a dredgemaster and launch driver on jobs at Hastings and Webb Dock, Melbourne, as well as helping to build new harbours in Weipa, Queensland; Outer Harbour, Adelaide; and Bunbury,WA, where the new harbour was blasted from rock. He bought and sold a tug over there before returning again to Victoria to run supply vessels to the Bass Strait oil rigs.

“After that a lot of people in the maritime industry were out of work so I restored a vintage car or two, bought and sold a bobcat and backhoe business

On the hOvercraft experience:

‘i LearneD aBOUt 300,000 One-DOLLar

LeSSOnS’

feature

32 | BusinessTimes | June 2010

Page 33: June 2010 (Frankston & Mornington Peninsula)

from a bloke who had a contract for sewer works in Mt Eliza, then bought and sold a share of the Continental Hotel in Sorrento before moving to Port Douglas for a while.”

It hasn’t always been plain sailing for the boy raised by his mother and sent away to boarding school at the age of four and a half. Flash back to the early 1980s when Mackeddie floated a hovercraft commuter service linking Rosebud, Mornington, and Frankston with Station Pier. It didn’t work and Mackeddie tried to salvage the investment by switching to a tourist service. The hovercraft The Courier caught fire at Portarlington when a fuel line disconnected. It was a devastating blow to the driven businessman.

While it was an emerging – and defining – path in his maritime business journey and an early pointer to a long relationship with Port Phillip, Mackeddie doesn’t like to talk about the hovercraft experience.

“It left a bitter taste with me and others who lost” he said. “It was a business before its time.”

It also sent him broke.“I learned about 300,000 one-dollar

lessons,” said Mackeddie. “It costs a lot to go fast on water: I was

a bit too ambitious.”On the up side, the experience taught

him a fair bit about the tourism business.

Experts still doubt the feasibility of a bay commuter operation. A 2008 Department of Transport commissioned study which looked particularly at a Geelong-Portarlington-Werribee link-up with the city, found that “commercial viability … is questionable and would require significant subsidy from government to operate.”

Maunsell’s Review and Analysis of Historical and Proposed Commuter Ferry Services on Port Phillip also looked back at the Mackeddie experiment and noted “a poor commuter turnout” and “the service could not achieve reliability”. It lasted about six months.

One thing about entrepreneurs, though, is that they keep coming. Just last October Carrum Downs businessman George Hart announced he wanted to operate a bay commuter service using a fleet of 12 custom-built ferries linking Rosebud, Mornington, Frankston, Brighton, Geelong, Werribee and Portarlington with Port Melbourne.

Hart, a helicopter pilot and former merchant seaman, said return trips to the city would cost $15 and $35 for a round-the-bay spin in 200-seat craft travelling 60 to 70 knots.

The $112 million operation would, of course, rely on government and private funding.

The State Government was not convinced and Department of Transport’s Chris Vera commented: “Existing ferry services in Victoria rely on patronage by tourists or provide links where there are no other alternatives.”

While John Mackeddie is not lining up to scuttle the dream he once held, he doubts the pricing and the viability of a

hovercraft ferry service, even today. As he said, he learned years ago that to

go fast on water costs a fortune – “huge horsepower means huge fuel consumption and very big costs”.

Also, he said, hovercraft have never really progressed like other forms of transport, jet engines, for instance.

“They haven’t solved the problem of extremely high maintenance required on the skirts and if you run gas turbine engines close to sea level, salt spray rewards you with more big maintenance bills.”

The hovercraft experience was still an open sore when Mackeddie started at Searoad, where he rose from a skipper to general manager in a few months.

“One of the skippers put Peninsula Princess on the rocks at Queenscliff – we faced a huge repair bill, a stockmarket crash and the company had little money.”

It was Mackeddie’s black swan event.“I said to myself that this is not going

to happen to me again.” Fear of failure is a great driver.

His determination not to fail as well as his knowledge of Western Port saved the day. Searoad’s team drove the ferry around to Western Port and beached it in front of Crib Point Engineering on the other side of the cove from Hastings pier. Mackeddie and another Searoad employee, wallowing in mud “up to our balls”, removed the bent driveshaft and the engineering company straightened it. The resolve and resourcefulness didn’t break the bank and Princess was back plying the bay within two days.

For Mackeddie, business is about continually rising to the challenges. It’s like the Japanese saying: Fall seven times, stand up eight.

ABOVE: Like a giant Nintendo these stickshifts control the thrusters that make berthing easier.

ABOVE LEFT: John Mackeddie’s pride and joy, MV Sorrento approaches Sorrento terminal.

ABOVE RIGHT: Searoads’ Managing Director John Mackeddie (background) with fellow Master 4s and good mates Keith ‘Bear’ Rawlinson (left) and Percy Jones on the bridge of MV Sorrento.

June 2010 | BusinessTimes | 33

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MARKET

34 | BusinessTimes | June 2010

A decade ago conservative investors would have rejected most these regardless of scale and quality. Sovereign risk trumped grade.

But the world has changed. There are still several nasty regimes in Africa, but many are also functioning democracies as we would understand the term. Some like Senegal and Botswana are not just stable but actively pro-mining. Both bill themselves as the “Switzerland of Africa”. Their model is widely copied: they encourage foreign capital with low taxation, cheap labour and co-operative Mines Departments in return for roads, hospitals, schools and ports.

Some of these off-shore projects are also strong. In Patagonia Andean Resources hasn’t put a foot wrong. Every drill hole hits gold. In Saudi Arabia, Citadel has the backing of one of the country’s richest families.

Oxiana, now Oz Minerals, built its fortune from Laos only to lose most of it here. In Senegal, Mineral Deposits has the government as a 10 per cent partner. It has poured 3.5 million tons so far, just three years from start-up: an impossibil-ity in Australia. MD Geoff Williams likes Senegal, loves the people and says he is keen to proceed with more projects in

The opportunities which spring from chaos can sometimes be elusive, but the government’s proposed super profits tax provides a few. First about 25 per cent of our local mining companies already operate entirely or partially off-shore and so are insulated from the tax.

Winners from resources rent tax

cent tax credits for early stage losses which will greatly assist emerging companies, but these companies still need the big bucks for the plant, infrastructure etc. It also ignores motivation. Most miners are aiming for a few bonanza years to justify all the pain and effort. If they wanted to run a newsagency they would have.

There are also a few companies who seem to be caught but are not. One WA based miner exports all its product to its own plant in China and so is taxed on repatriated profits as a manufacturer. In the mayhem this fact was largely ignored.

Nor should it be over-looked that both BHP and Rio are not totally exposed to Australian projects. In this scheme they can even transfer losses internally from one project to another. After winning exceptional increases in coal and iron ore prices for two years, profits will also be riding high.

For political punters there is also the likelihood that the scheme is changed or killed off by anxious back-benchers. It threatens hundreds thousands of suppliers of services from housing to food, fuel, equipment etc as the Premiers of Queensland and WA well know. And then there is China. It invested in Rio at the top of the market and was then double crossed. It won’t be keen on a second serve of the same.

*Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. 350 Collins Street, Melbourne, 3000. email: [email protected]

neighbouring Mali. This is something Cabinet completely over-looked. Even before this proposal there were compelling reasons to look overseas. After 150 years of mining Australia is well picked over. What remains tends to be either tied up by the majors, not well served by rail or power, or of good tenor, but relatively deep and so capital intensive. This is precisely why many small and mid-tier miners did 30-40 partnership or off-take deals with Chinese companies over the last two years. China had the funds; our market didn’t.

This makes the PM’s crack at BHP and Rio shareholders all the more bizarre. Australia wants the benefit of the mine taxation, but will not stump up the development capital. It now plans to retrospectively tax those who do and did. That in any language is “sovereign risk”.

Tax theoreticians can point to the 40 per

*Richard CampbellStock Analyst

Most miners are aiming for a few bonanza years to justify

all the pain and effort. If they wanted to run a newsagency

they would have.

Page 35: June 2010 (Frankston & Mornington Peninsula)

JUNEHow to beat the financial bluesSpeaker: Tony Roberts, Angle Book-keeping ServicesTuesday, June 227 – 8.30pmBenitos1196 Nepean Hwy, Mount Eliza$20 for PBN members;$25 for non-membersCall: 0411 551 400

JULYShowcasing Local Businesses(A delicious assortment of food and goodies to try from our beautiful peninsula)Tuesday, July 206.30 – 8pmBox Stallion Winery64 Tubbarubba Rd, Merricks NorthCall Leonie: 0412 110 112

AUGUSTManaging Legal Risks in Business: Keith Hanslow, Partner, Millens Lawyers.Tuesday, August 24Breakfast: 7am – 8.30amBrooklands of Mornington99 Tanti Av, MorningtonCall Tony Woods, 0418374330

Peninsula Business Networking calendar

Peninsula Business Networking Incorporation is a non profit association supporting and promoting local small businesses. Email: [email protected]

Visit www.peninsulanetworking.com.au

HIRING a professional bookkeeper can take away the stress of BAS time and give business owners back their evenings and weekends.

The books must be done every three months for the Business Activity Statement and if they aren’t done correctly, it will certainly cost time and money to fix. A professional bookkeeper with training and experience will be quicker and cheaper in the long run. And it frees the business owner to concentrate on business. A professional bookkeeper will take on many of the tedious tasks such as data entry, reporting, and reconciliation, as well as paying bills, debt collection and superan-nuation. Normally, a bookkeeper will focus on day-to-day data entry, bank reconcilia-tions, and generally preparing records for BAS time, and for handing over to the accountant at tax return time. A qualified CPA or chartered accountant can provide tax advice, prepare financial statements, tax returns, and provide business assistance.

Reclaim the weekend Bookkeepers can work at clients’ premises or take away the paperwork to process off-site, and return it when the work has been completed. They can process payrolls, on or off-site – even remotely via the internet. Professional bookkeepers understand issues with contractors, directors’ fees, PAYG withholding, superannuation choice, allowances and fringe benefits tax.

Anne NelsonProprietor, Jim’s Bookkeeping

Mornington Beachside

WHEN you know the rules of making money, success is a lot easier, says Claire Burns, a business development strategist, of Step Up Coaching.

“If you keep learning, success builds on success. With this knowledge you can maximise your opportunities and minimise mistakes; create opportunities you otherwise may not have seen; and do things you couldn’t do before.”

A highly credentialed and experienced

coach, mentor, teacher and trainer within the Victorian Government, Claire Burns and her husband have owned two businesses. A ‘people person’ with a passion for learning, personal growth and development, Burns says she is committed to motivate and support others to discover and value their opportunities.

She says a business development strategist helps business owners learn better management and achieve better results. “The greatest challenge for most small/medium business owners and decision makers is making sufficient money, while living a life of personal freedom and fun.

“Businesses struggle to make decent profits for a number of reasons, including time management, lack of focus, lack of discipline and motivation, absence of a “qualified” sounding board, lack of effective systems and organisation and a host of other things that coaches will work on.

“Coaches assist individuals to learn new skills, learn about themselves and others and to develop and adopt strategies that allow them to work and live the life they want,” Burns said.

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NETWORKING

June 2010 | BusinessTimes | 35

Page 36: June 2010 (Frankston & Mornington Peninsula)

The Apple iPad, launched amid fanfare and anticipation on May 28, is a 25cm by 19cm computer, literally just a touch screen that you can use in any orientation.

There’s no upside down or sideways: it goes with your flow. Super thin, iPad weighs just 0.68 kg and has 10 hours of battery life.

It runs on the same operating system as the iPhone and all of the 125,000 applica-tions for the iPhone work on the iPad. One of the new applications designed for the launch of the iPad, called iBooks, turns it into an e-reader for newspapers, magazines and books. Also Apple markets iPad as ideal for web browsing, emailing and photos (and a host of other things, too).

The new iPad is a hybrid of Apple iPhone, Apple iTouch, and a full laptop notebook. Using the touch screen, you can browse the internet, use apps, listen to music, watch movies and play games. It won’t be able to make calls, but imagine putting one up to your ear anyway. Uncool.

Walter S. Mossberg, of All Things Digital,

wrote in his Wall Street Journal column: “This new beautiful touch screen device from Apple has the potential to change personal computing profoundly, and to challenge the primacy of the laptop.”

The iPad has added features that business users should find attractive, according to US website Appleinsider

Apple has included iWork, its Office-compatible productivity suite, while giving it a multi-touch makeover.

“Aligned with the idea of using the iPad as a Keynote presentation tool, the iPad now supports VGA output for driving a projector directly. Users can markup slides and point with a virtual laser pointer as the presentation continues,” says Appleinsider.

Apple reportedly is working on direct network printing from iPad apps, as well as support for accessing shared files from a local file server.

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36 | BusinessTimes | June 2010

MYOB makes it easierMYOB has released new versions of its small busines management software with feature upgrades aimed at increased efficiency and workflow for small business owners.With a new range of features and improve-ments to payroll management, reporting, forms and usability tools, the latest MYOB small business management release should help business owners to work smarter, not harder.For sole traders and home-based businesses (no employees) MYOB Accounting v18 and MYOB FirstEdge v4 for Mac OS X have been updated and now include enhanced usability, advanced search capabilities and improvements to remittance advice and customer receipting. For small businesses with employees MYOB Accounting Plus v18, MYOB Premier v12, MYOB Premier Enterprise v6 and MYOB AccountEdge v8 for Mac OS X have all been updated.These products also gain enhanced usability, advanced search capabilities and improvements to remittance advice and customer receipting. MYOB offers free trials of software which can be downloaded from its website, www.myob.com.au

Page 37: June 2010 (Frankston & Mornington Peninsula)

1030

The Hon Bruce Billson MPFederal Member for Dunkley

Shadow Minister for Small Business, Deregulation, Competition Policy and Sustainable Cities

FrankstonPO Box 501 Vic 3199Tel: (03) 9781 2333Fax: (03) 9783 7912

Canberra - Suite Rl .113Tel: (02) 6277 4257

Fax: (02) 6277 8516Email: [email protected]

Backing Small Business

Business Development StrategistRIBI (Results in Business Institute)

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Research has shown that the sooner graffiti is removed the less likely it is to reappear; therefore it is important that it is removed as soon as possible.

That is why I have launched the Graffiti, Vandalism and Litter report on my website, www.nealeburgess.com.au. This is a new service which provides an easy one step approach to reporting problem areas in your local community.

Just click on the link on my homepage and fill in the online form. Alternatively, if it is more convenient, you can also contact me on 5977 5600 or come into my office at 6 Eramosa Road East, Somerville. I will work with our local councils and Police to ensure these serious matters get the attention they deserve.

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Tel: (03) 5977 5600Fax: (03) 5977 7263 [email protected] www.nealeburgess.com.au

Neale BurgessMember for Hastings

June 2010 | BusinessTimes | 37

Card payment app for iPhoneThE ANZ Bank has trialled a new application – ePOS Mobile – which allows small business owners to accept credit card payments via their iPhone.The payment app is the first of its kind to be trailed by a major Australian bank and has been tested by a number of retailers including whitegoods supplier Fisher & Paykel.The bank said the key objectives of the app were to ensure it was secure, fast and simple to use. Fisher and Paykel reported that the payments app had been well received by customers and was easy for staff to use, removing the need for logging into Eftpos terminals and printing receipts, which are emailed to customers.

Social networking on ZooOPTuS has signed an agreement with a Swiss mobile software company, Myriad Group, to create SocialView, an add-on to the Optus Zoo portal allowing access to social sites like Facebook, Twitter, Myspace and Flickr at no extra cost. SocialView is accessed through a browser, rather than re-quiring a smartphone, and allows Optus users to view messages and post updates to specific sites or to all social networks. Customers can choose to receive free text alerts of updates within these networks. SocialView itself won’t cost anything to use, but access to Optus’ Zoo portal requires a data pack, which (in late April) was charged at $1.50/KB capped at $9.90 for 5MB on prepaid, or $4.99 for 150MB and up to $19.99 for 2GB on a contract.

Page 38: June 2010 (Frankston & Mornington Peninsula)

Business and economics undergradu-ates at Monash university’s Peninsula and Berwick campuses are getting a taste of working life under a placement and internship program.

And employers are getting the chance to trial talented students who are eager to find their first step on the ladder to career success and lifelong learning.

The university, realising that businesses do not want to risk taking a new graduate without checking skills like communica-tion, organisational fit and technical and theoretical capabilities, came up with the work placement plan two years ago.

it has all the elements of a ‘try before you buy’ scheme as well as being the perfect vehicle for students to ‘road test’ what they specialise in at university.

There is a choice of two programs: the first is 40 days of unpaid work, equivalent to two units of study at the university.

These days of work are spent on a meaningful and worthwhile project that will add value to the organisation and give the student ample opportunity to apply skills learned during the formal part of their degree.

students have found this prgram to be priceless and feedback from employers has been supportive and constructive.

The second program is 20 days of unpaid work (during the summer break), equivalent to one unit of study. employers often find it is easier to give the students a short, sharp introduction to the world of work.

each of the programs involves some form of formal assessment by way of report, presentation and or employer assessment.

These assessments are judged on academic standards and the results count towards the students’ final grades.

students are covered by the university

for all insurances and the employer is not required to pay them, although a contribu-tion to transport costs is often appreciated.

Businesses wanting to know more about this valuable and valued program may call Lesley soan, Peninsula campus on 9904 4182 or Vanita Amin, Berwick campus, 9904 7081.

- Andrea McCallAcademic coordinator,

Berwick and Peninsula campuses, Monash university, call 9904 4044.

Workplace scheme helps Monash students and business

‘It has all the elements of a ‘try before you buy’ scheme as well as being the perfect vehicle for students to ‘road test’ what they specialise in

at university.’

Significant lift in the quality of job seekers ThroughouT 2009 many people in secure employment were extremely hesitant to change jobs. Many cited the global financial crisis as their main reason for staying put. They had a sense of security with their current employer and chose to put on hold any ideas of switching.

“The past three months has seen a significant increase in the quality of candidates applying for roles around the Mornington Peninsula,” Michael stanley, principal director of the profes-sional recruitment firm Peninsula People recruitment said.

“Before Christmas the quantity was positive, however the quality had been down for most of 2009 compared with previous years.

“People with an excellent work history

and specialist skills were loath to move to the unknown.”

By this stanley means that employees were finding it hard to judge the sustainability of employers and organisations through tougher times.

“Australia’s ability to weather the gFC considerably better than the us and europe has meant that our firm has seen a very genuine spike in the quality of candidates applying for the roles we are handling.

“With the economy improving and continued growth in job advertising in both February and March, as announced by the AnZ Bank, there has been improving demand evident in employment sectors like manufacturing, finance/accounting and sales/customer service.”

stanley even noted that the legal field has seen a jump in job inquiries: “With a generally more positive outlook for the

remainder of 2010 and more sustained growth expected throughout 2011, Mornington Peninsula and surrounding regions can look forward to being able to employ higher quality employees,” stanely said.

“higher calibre people are now confidently entering the job market and are prepared to leave their current roles to chase new challenges and, basically, they are citing three key reasons.

“Primarily it is career based. secondly it is geographical – able to work closer to home to gain a greater balance in their work and lifestyle – and, thirdly, it can be to move away from a less than positive workplace and seek out a much more professional work environment.

“Prospects for 2010 and beyond are certainly looking up for local businesses to attract even better employees.”

For more information, contact Michael Stanley, Peninsula People Recruitment, 9781 4442 or 0419 045 665.

Michael StanleyPrincipal Director

Peninsula People Recruitment

FreeDigitalPhoto.net

recruitment / education

38 | BusinessTimes | June 2010

Page 39: June 2010 (Frankston & Mornington Peninsula)

HEALTH

June 2010 | BusinessTimes | 39

WE know that Australians are gold standard enthusiasts for new technology and that our love affair with it has made us more efficient at work and given us more time for play. Right? Well, that’s what was supposed to happen.

Of course, as every sociological survey continues to confirm, it hasn’t. Aided by technology, most of us are actually working harder, longer, later.

The psychology of this is a question for another day and someone more expert.

But it illustrates a modern predicament about which an ancient philosophy has a great deal to say.

The West understands little about traditional Chinese medicine or its underpinning ideas but, like most of the Eastern philosophies, its insights are just as relevant now as they were in a vastly different culture 20 centuries ago.

We knew nothing about Chinese medicine up until the late 1970s when

China threw open its borders to the West.And even since then, the public

perception of Chinese medicine has been limited, partly because of the language and cultural barriers but also because traditional practitioners found it useful to trade on the mystique of the Eastern therapies and often did not explain themselves in a way that made sense to sceptical Westerners.

This is a shame, because Chinese medicine is not some esoteric, “alternative” faith healing system.

It is a complete medical model in its own right that offers real, practical insights into health and the lifestyle extremes that cause illness.

In fact, the Chinese had many things pegged all those centuries ago that our scientists and cultural leaders are still figuring out.

Take the most basic idea that most Westerners have heard of – the notion of “yin and yang”.

Most people have heard the expression, even if unsure what the words actually mean.

Yin is matter – substance, stillness, earth.

Yang is energy – function, activity, warmth, the heavens.

In between earth and heaven, composed of equal parts yin and yang, is life.

For that life to remain healthy requires a continuing balance between yin and yang.

Think of a brilliant flower in the sun.The sun (yang) radiates down, warming

and stimulating activity, and nourished from below by a reservoir of water (yin), the flower flourishes.

Only if an imbalance develops in yin and yang – say, too much hot sun drying up the flower’s yin reservoir – does the flower’s health suffer.

It becomes overheated its cellular activity is over-stimulated and it starts to dry out, shrivel up and eventually with its

Life’s a balance, so they sayyin exhausted, its yang has nothing left to act upon and also expires.

Burnt out, the flower dies.It’s a profoundly simple understanding

of the health dynamic.And it’s one that the Taoist philoso-

phers and Chinese medicine applied in a sophisticated way when seeking to explain illness.

As well as the matter-energy dynamic, they understood another basic tenet of physics – that for every action there is an equal reaction.

This thinking maintained that not only should human beings not remove themselves from the rhythms of nature, but that indulging in lifestyle extremes had predictable health consequences.

Which brings me to the point about work.

Possibly the most common health issue in Western society, as Chinese medicine sees it, is that people deplete their yin too quickly.

Just like the flower shining brilliantly under the hot sun.

Depleted yin is the inevitable consequence of working too hard, too late, for too long.

The effects of depleted yin are many and include an inability to relax.

The body becomes so over-stimulated that it’s like the taxi engine that runs on overdrive for so long, it’s so overheated that even when you finally switch it off, it stays hot for hours.

Fatigue, thirst, dryness, insomnia, irritability, a feeling of being constantly over-wound. These are some of the physical symptoms of depleted yin.

What’s the cure?The fundamental remedy is to switch

off some yang and replenish your yin.Remember that yin is stillness, rest,

recovery, night time. The ultimate yin practice is sleep. If

awake, it is meditation. However, people with depleted yin find

it very difficult to sit and meditate. (And to sleep!)

Their “engines” are too stimulated to sit quietly trying to still their thoughts.

‘FATIGUE, THIRST, DRYNESS, INSOMNIA,

IRRITABILITY, A FEELING OF BEING

CONSTANTLY OVER-WOUND. THESE

ARE SOME OF THE PHYSICAL SYMPTOMS

OF DEPLETED YIN.’

Michael Ellis*Chinese Herbalist

wu

Page 40: June 2010 (Frankston & Mornington Peninsula)

HEALTH

40 | BusinessTimes | June 2010

NEWS WHEELS

But meditation does not have to be about complete stillness; it’s more about quietening your mind than about keeping your body still.

Practices like yoga have a meditative effect if you can keep your mind only in the present. Even sport is helpful because even though you may be burning more “yang”, most sport requires you to be completely present – not to be thinking about what just happened in the office or what job you’ve got to do next.

The other key is to engage in yang activities - like work - during the yang time of the day (when the sun’s out) and to rest during the yin time (night).

That is living in tune with the natural rhythms of nature. People who work nights deplete their yin quicker and, ultimately, their yang. So work hard and exercise during the day – preferably in the morning. Go to the gym in the morning rather than after work.

And don’t work late into the night, the time when you should be guarding your yin. It’s simple. In fact, I suspect that few readers who have read this far will feel there’s anything startling in this.

In the West, our double-blind, placebo-controlled research studies have been coming to these sorts of conclusions, too.

Even popular women’s magazines are picking up these themes.

I am well into the third decade of my working life and a significant number of my peers seem to have arrived at essentially the same insight. It’s along the lines of: “I enjoy what I do and I’m prepared to work hard – but only on my terms.”

What they mean is, they will accept that extra job, at a fair price and do their best, but not at the expense of their yin time.

Whether that means their daily walk, an early surf (very meditative), yoga class, game of golf, long weekends, or simply knocking off at 5pm no matter what, and getting an adequate night’s sleep.

These are all ways of guarding your yin.If, 20 centuries ago, you turned up at

a Beijing medical clinic complaining of a grab-bag of symptoms characterised by fatigue, insomnia, thirst and irritability, you would likely be sent on your way with a packet of herbs and one piece of advice: “Don’t work so hard.”

*Michael Ellis is a registered Chinese herbalist in Mt Eliza. www.mtelizaherbs.com

t

SO it comes as no surprise that the new E-Class model from AMG looks aggressive without going over the top. The front apron has a large central air intake and two large side apertures. These are there to provide maximum cooling for hot days at a racetrack, but there’s no doubt they also please the eyes. The side air vents expel hot air from the oil coolers. Four exhaust tips indicate this latest AMG is the real thing.

Then there’s the wheel/tyre package, with distinctive 19-inch AMG alloys wheels sitting under flared guards.

These guards are not immediately obvious, thanks to the subtlety of the way they join the body; but in conjunction with the frontal alterations they work brilliantly.

Comfort in a sporting manner abounds in the cabin. There’s soft Nappa leather including on the dashboard.

The roof lining, pillars and sun visors are all in Alcantara (pseudo suede leather) providing a soft but sporting effect

The hand-built AMG engine delivers 520 horsepower, 360 kilowatts. The 6.2-litre V8 (ignore the 6.3 badges, they

tell a little fib) revs out to 7200 rpm to produce all that power. Peak torque of 630 Nm isn’t achieved until the engine is turning at 5200 rpm, but there’s plenty of grunt from 2000 upwards.

Even better, it sounds the part. The E63 has an exhaust note that must rate near the top in the sports saloon segment.

The AMG automatic transmission is a stunning piece of work. Instead of a conventional torque converter it has a wet start-up clutch. It’s not as smooth and subtle as the normal Mercedes automatic, being slightly jerky in its actions.

This is to achieve maximum performance and won’t faze the sporting motorist, though passengers accustomed to the last word in cosseting may find it irritating at times.

This special automatic transmission has four drive modes with double-declutching and race-start functions with a direct connection to the powertrain. In M mode the gear shift borders on the amazing

Sleek Benz E63:A car for all reasonsTHOUGH going hard is the thing that people talk about most in discussions about the high-performance models in any range, visual appeal is also an important part of the package.

Ewen KennedyMotoring Journalist

Page 41: June 2010 (Frankston & Mornington Peninsula)

June 2010 | BusinessTimes | 41

with changes taking place in a tenth of a second under full engine load.

AMG engines are about performance above all else, but generally still manage superb fuel efficiency, so we were surprised at how high the consumption was during our test week.

On the motorway it managed a reasonable 10 to 12 litres per hundred kilometres, but around town it was common to see figures the wrong side of 18 litres per hundred.

The E63 features an all-steel front suspension combined with all-air suspension at the rear. The AMG E63 differs from others in the E-Class range in having a specially developed three-link front suspension. This gives a 56 millimetre wider track than the E500.

Speed-sensitive rack-and-pinion steering works brilliantly and provides excellent road feel without being over aggressive. The E63’s handling ability on tight, twisting, uneven roads is impressive for

AT A GLANCEMODEL RANGEE63 AMG 6.2-litre four-door sedan: $234,900

FEATURESABS Brakes: StandardAir Conditioning: StandardAuto Transmission: StandardCD Player: StandardCentral Locking: StandardCruise Control: StandardDual Front Airbags: StandardFront Side Airbags: StandardStability Control: StandardTraction Control: Standard

SPECIFICATIONS (Mercedes-Benz E63 AMG6.2-litre four-door sedan)

ENGINECapacity: 6.208 litresConfiguration: V8Head Design: Four valves per cylinderCompression Ratio: 11.3:1Bore/Stroke: 102.2 x 94.6 mmMaximum Power: 386 kW @ 6800 rpmMaximum Torque: 630 Nm @ 5200 rpm

PERFORMANCE 0-100 km/h Acceleration: 4.5 secs

FUEL CONSUMPTIONType: Petrol 98RONCombined Cycle (ADR 81/01):12.7 L/100km

GREEN VEHICLE GUIDE RATTINGSGreenhouse Rating: 4/10Air Pollution Rating: 8.5/10

STANDARD WARRANTYThree years/unlimited km

THE ESP BUTTON HAS THREE SETTINGS THAT

REDUCE THE DEGREE OF ESP INTERVENTION, WITH THE FINAL SETTING BEING AN ‘ESP OFF’ – THE LATTER FOR USE BY EXPERIENCED

DRIVERS UNDER RACETRACK CONDITIONS.

ABOVE: Aggressive in appearance without being over the top, the latest hot AMG model from Mercedes-Benz – the E63.

a car of this size. It turns beautifully with minimum steering effort and retains poise even under heavy acceleration out of sharp, fast bends. At times it feels like it’s on rails.

Noise, vibration and harshness are generally well damped, but some surfaces, particularly poor quality concrete freeways, set up quite a noise from the tyres.

Comfort is very good for a car in this high-performance class. It’s a little firmer than the average E-Class sedan but that’s not likely to upset even those who love to be cosseted. The suspension settings are adjustable for sports and sports+ when the standard ratings aren’t to your needs for the occasion.

Electronics abound in the chassis dynamics of this high-tech AMG. There’s an ESP button, a suspension control and a ‘store’ button for the driver’s preferred settings. The ESP button has three settings that reduce the degree of ESP intervention, with the final setting being an ‘ESP off’ – the latter for use by experienced drivers under racetrack conditions.

Major options include red brake callipers, AMG exterior Carbon package, AMG interior Carbon package and illuminated AMG door entry sills, there are plenty of other little extras on offer, contact your dealer for all the details.

The new Mercedes E63 is a vehicle for drivers who want a family car with true race track credibility. A car for all reasons, be they boring commuting, Sunday cruising or full-on bruising at the track.

Page 42: June 2010 (Frankston & Mornington Peninsula)

1. Robin Gardner, winemaker at Stoniers, Merricks, judging at the International Cool Climate Wine Show at Mornington Racecourse on May 18. There were 660 entries for the three-day event.2. Vivian Rooney, of Sargeants conveyancing and property transfer (left) with Sandra Dunbar, of Sandra Dunbar Real Estate at Peninsula Business Network morning at Benitos, Mt Eliza, on May 18.3. Jennifer Wagg, of Finance Innovations, president of Business Network International Mornington chapter, (left) with Donna Olman, of eview Real Estate, at BNI’s breakfast at Kirks Hotel, Mornington, on May 19.4. Julie Hynes, stylist and image consultant, (left) with Leonie Harcourt, of HMS Print Management, at Benitos.5. Kathryn Ebbott, of Melbourne Office Solutions, (left), Ann McDonnell and sister Janice McDonnell, of Review Your Style, at Benitos. Ann is visiting from the UK.6. From left: Renee Williams, of Travel Managers, Dr Ali Postles, of Carmel Whelan Chiropractic, Clair Burns, of Step Up Coaching, and Michelle Roberts, of RI Advice, Frankston, at Kirks.

• Email Marg at [email protected] about planned networking events.

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Page 43: June 2010 (Frankston & Mornington Peninsula)

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