Australian Chamber Annual Report and Business Review 2018 Chamber Annual Report and Business Review 2018 Published by the Australian Commerce of Commerce and Industry Level 2, 24 Brisbane Avenue, BARTON ACT 2600 P: 02 6270 8000 www.australianchamber.com.au ISBN 9780646534091 Editors Sarah McGregor Senior Manager, Membership and Marketing [email protected] Emily Kennelly Adviser, Public Affairs and Advocacy [email protected] Zoe Callaghan Communications and Events Coordinator [email protected] Design 3 Degrees Marketing 3dm.com.au No part of this publication may be reproduced in any manner or form without written permission from the Australian Chamber. CONTENTS PRESIDENT’S MESSAGE 1 CEO’S MESSAGE 3 AUSTRALIAN CHAMBER MEMBERSHIP NETWORK 5 NATIONAL SECRETARIAT 10 GOVERNANCE 11 OUR BOARD 13 STRATEGIC PLAN 14 YEAR IN NUMBERS 15 PUBLIC AFFAIRS AND ADVOCACY 17 ECONOMICS, INDUSTRY AND SUSTAINABILITY 18 EDUCATION, EMPLOYMENT AND TRAINING 19 AUSTRALIAN CHAMBER - TOURISM 20 TRADE AND INTERNATIONAL AFFAIRS 21 WORKPLACE HEALTH AND SAFETY AND WORKERS’ COMPENSATION 23 WORKPLACE RELATIONS 25 SUBMISSIONS 26 BIZ BETTER TOGETHER 27 2017 EXPORT AWARDS 30 2018 BUSINESS LEADERS SUMMIT 31 2017 BUSINESS LEADERS ANNUAL DINNER 33 BUSINESS LEADERS COUNCIL EVENTS 35 AUSTRALIAN CHAMBER ANNUAL REPORT AND BUSINESS REVIEW 2018 PRESIDENT’S MESSAGE THE EXTRAORDINARY IS BECOMING COMMONPLACE AND THE NEED FOR COLLECTIVE POLICY AND ADVOCACY BY THE AUSTRALIAN CHAMBER AND ITS MEMBERS HAS NEVER BEEN GREATER. The past year has thrown up as series of extraordinary national political events with a major impact on the interests of businesses represented in the Australian Chamber network. Government entered the year with the slimmest of majorities, staggered through a series of by-elections, elected a new Prime Minister, Treasurer and Cabinet. Instability dominated the political cycle and 24/7 news cycle and repeated businesses pleas for increased policy certainty, sound decision making and bipartisanship where possible, became increasingly loud. Internationally, the Trump administration’s aggressive stance on trade and unilateral tariff increases put Australian fi rms at risk. Together with uncertainty over Brexit it fuelled continuing debate over the benefi ts of free trade and globalisation and the best way forward for market economies. This is echoed in the rising debate over population growth and immigration in Australia. Our population reached the 25 million mark and congestion in Melbourne and Sydney led to calls to cut back on immigration, while regional centres and rural communities remain desperate to bring in skilled people from overseas to do the jobs that Australians are unable or unwilling to fi ll. 1 AUSTRALIAN CHAMBER ANNUAL REPORT AND BUSINESS REVIEW 2018 “The Australian Chamber secretariat has strengthened its policy and advocacy role, with new staff appointments and growth in industry association membership, which boosted the very strong contributions from member chambers and our existing industry association members.” The skills shortage in our workforce is widening and Business Leaders Council, boosting our network of investment in vocational education and training is at influence and the value we offer to all of our members. critically low levels. At the same time, job creation is strong as baby boomers retire and the economy enters Membership growth, a better than expected trading its 27th year of growth. result and prudent management reduced the operating deficit and led to the adoption of a balanced budget for Despite increasing employment, subdued wages 2018-19 – a year ahead of plan. growth and high costs of living are feeding the unions’ We set aside plans for national membership and campaign to “change the rules” to give them more partnerships to focus on policy and advocacy and to power, force pay rises without regard to affordability, increase the Australian Chamber’s influence at the and take away employers’ management prerogatives. international level through the International Organisation The ACTU agenda sees little or no role for productivity of Employers, the OECD and the International Chamber improvement or greater flexibility to allow Australian of Commerce at the UN. firms to become more competitive. Peter Hood, former President of the Australian Chamber Increased energy costs on business are biting hard. and currently Chair of our Trade & International Affairs Efforts to bring in a combination of short and long term Committee, retired from the Board last year and will solutions to address affordability, reliability and emissions leave the Board of the Chamber of Commerce and reductions ended in a stalemate over the long term plan Industry of Western Australia, where he served as represented by the National Energy Guarantee. At the President, later this year. Peter was instrumental in same time the new Prime Minister is pressing on with the organisational restructuring and revenue decisions some of the Competition and Consumer Commission’s several years ago which laid the foundation for our recommendations for shorter term price relief. We increasing profile, influence and financial sustainability. need to see both the NEG combined with ACCC recommendations: “NEG plus”. Finally, I would like to acknowledge the work of the board and the leadership of James Pearson, our CEO, The Australian Chamber secretariat has strengthened its and his team who display a level of commitment and policy and advocacy role, with new staff appointments energy on behalf of business, and engagement with our and growth in industry association membership, which members, that all of us can be proud of. boosted the very strong contributions from member chambers and our existing industry association members. Jeremy Johnson More corporates than ever are now members of our President 2 AUSTRALIAN CHAMBER ANNUAL REPORT AND BUSINESS REVIEW 2018 CEO’S MESSAGE WE GROW STRONGER AS AN ORGANISATION AS WE FACE INCREASING CHALLENGES AS A MOVEMENT. The Australian Chamber of Commerce and Industry membership network has never enjoyed the breadth and depth that it has today. Over the past three and a half years, the eight state and territory chambers of commerce and some two dozen industry associations, have been joined by over 50 more national and state industry associations. Our Business Leaders Council has gone from the drawing board to a membership of around 60 medium and large corporates. Our ranks swelled by over 20 in the past year alone. We ran over 60 networking events this year for our Australian Chamber and Business Leaders Council members to bring members and supporters together with political and business leaders, decision makers and influencers. But the cause of business faces a challenge to its legitimacy and a threat to its viability the like of which we have not seen for generations in Australia. In the past year, the unacceptable behaviour of banks and insurance companies revealed by the Royal Commission, perceptions of excessive pay for senior executives, concerns at the impact of market dominance in key sectors of the economy such as energy, and 3 AUSTRALIAN CHAMBER ANNUAL REPORT AND BUSINESS REVIEW 2018 “The most radical union agenda in generations looms like a spectre over the forthcoming federal election” allegations of tax avoidance by multinationals have targets. It was adopted by the government but then, severely damaged the reputation of big business. That like many other hard-won policies, became collateral has weakened support for the business policy agenda, damage in the Coalition leadership spill. We continue although the public and politicians remain supporters of to argue for it, and secure wins such as the accelerated small business and their efforts to succeed. tax cuts. The most radical union agenda in generations looms The Opposition endorsed our call to increase like a spectre over the forthcoming federal election. apprenticeships, appointed us to its inquiry into post- Businesses are deeply concerned that the ACTU secondary education and adopted key planks of our campaign to “change the rules” will drive ALP workplace trade policy as their own. At our Business Leaders relations policy backwards. A more rigid labour market Summit, Labor acknowledged the increasing quality and is the last thing Australia needs as we work harder than frequency of dialogue between the Australian Chamber ever to thrive in fiercely competitive and volatile markets. and the Opposition. Our resilience will be tested, but we can look to We have recruited strong performers in key advocacy our achievements this year and the increase in our and financial management roles and have again seen organisational capability as reasons to be confident. a year of outstanding commitment and achievement by our team. We continue to build our public profile. With that comes influence, based on the sound policies we advocate, with For that, I want to thank our secretariat and our the support of members. We secured an acceleration of members. The support of our President, Board, and of the tax cut for businesses with annual turnovers of up to our members across the country through subscriptions, $50million, an extension of the instant asset write-off for policy committee work and lobbying alongside us, small business and saw both the small business ministry amplifies our voice. It will be vital in the year ahead. and the workplace relations ministry returned to cabinet. James Pearson We were early advocates for