G'Day UK 2009

Thursday saw the coming together of influential Australian and UK business leaders to share ideas, explore synergies, strengthen existing ties and build new ones at the inaugural G’dayUK, Australian Business CEO Forum, sponsored by CPA Australia.

The Forum heard from UK Minister for Business, Innovation and Skills, The Rt Hon Pat McFadden MP, Australian High Commissioner, HE John Dauth LVO and the CEO of the Australian Industry Group, Heather Ridout.

During his speech to delegates, The Rt Hon Pat McFadden MP highlighted trade links saying: “We celebrate the relationship between Britain and Australia economically and that’s a hugely important relationship with bilateral trade worth some £10 billion a year”. He added: “Here in Britain, we’re very proud that people, anywhere in the world, can come here, make a business, invest and do well and Australian companies – many whom are here today – are benefiting from those opportunities.”

Commenting on the partnership, Australian High Commissioner, HE John Dauth LVO said: “As two of the most open and globalised economies in the world, Australia and the United Kingdom clearly have much in common and much to offer each other. We realise that we are better able to wield influence internationally when we act together than when we act on our own and this CEO Forum is a way of adding a new dimension to our already extensive people-to-people and business links.”

Heather Ridout, Group Chief Executive for Australian Industry echoed these sentiments:
“This CEO Forum is very timely. There are dramatic shifts occurring in the world economy and Australian business needs to be reminded of the strengths of doing business in Europe and in particular the UK. The UK also needs to understand the opportunities and potential Australia has to offer as a location for investment and doing business generally.”

The Forum was attended by 200 delegates who discussed the latest in technology, business innovation and investment opportunities in the areas of Financial Services, Resources, Climate Change and the Olympics – 2012 and Beyond. Speakers included Professor Richard Petty, President of CPA Australia; John McFarlane, Former CEO of ANZ Bank; Drew Kelton, Managing Director, Telstra; David Higgins, CEO, Olympic Delivery Authority; Phil Cox, CEO, International Power; John White, Executive Director, Ignite Energy Resources; Martin Blake, Head of Sustainability, Royal Mail; and John Burton from Westfield.

“This was the most significant gathering of high level business delegates from the UK and Australia for many years and will be pivotal in cementing the extensive economic relationship between the two countries as we face tough economic times”, said Chairman of G’dayUK, Philip Aiken.

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26 June 2009

For further information please visit www.gday-uk.co.uk
Ann Burton, CUBE Communications; Tel: 020 8401 5506 Email: ann@gday-uk.co.uk
For more details on the CEO Forum, please contact Australian Business. www.australianbusiness.co.uk

Notes to editors:
The outcomes from the four workshops were as follows:

Resources
• The general conclusion is that the commodities market has bottomed out and that there will be returning economic growth led to a significant degree by China
• There is no doubt regarding the importance of China to Australia, and of mining to the Australian economy; mining companies make up 22% of value of AXX, 33% of AXX companies and 42% of Australian exports.
• Australia competitiveness remains in good shape, with a good investment base and legal quidelines and precedents. However, there are challenging areas, such as infrastructure, fiscal regimes and community liaison.
• Five key criteria that must be met for a successful project: Low cost Resources, Customers, Capability, Government support and Partner Alignments
• Australia – with its natural advantages of bountiful resources and a close geographical location to China and the rest of Asia – is set to remain at the forefront of the resources market

Financial Services
• In the past two decades banks have diversified from simple lending to a great many other areas and this has been the cause, symptom and continuation of the present problems in the current financial markets
• It was a simple cycle – over-expansion, innovation, risk taking with extremely high leverage and funding with new and increasingly complicated financial vehicles. This meant that no-one had a good feel for credit risk.
• Undoubtedly there will be an increase in regulation, but hopefully not excessively so, or it will scare people away. The cap on earnings is a concern.
• With the prospect of more regulation, linkages are now more important than ever, both between companies and between sectors.
• In achieving this there will be greater capital and value being created.
• London and Australia are robust in having competitive factors in place therefore it is quite likely in the long term that they will remain key financial centres and are in very good shape for the future.

Climate Change
• Creative tensions exist between the need to produce cheap, secure, safe energy - from, for example, brown coal - and the transition to renewable energy.
• A transition period will be needed for all involved to be able to meet obligations at federal and state levels – including a new regulatory framework.
• There is an increasing need to set a global benchmark price of carbon – in fact, it will be pivotal. It will also be important for companies to include a shadow price of carbon in their planning process and calculations.
• There is already evidence that carbon intensive companies are seen as having a higher degree of risk to insurers and financiers
• Need to channel investment into renewables and co-ordinate government and business action globally.
• Education and regulation is key. The environment needs to ensure implications of change are thoroughly understood

“Up to government to responsibly re-deploy capital away from risk and into capital to reduce omissions” James Cameron, Vice Chairman, Climate Change Capital

“Clearly there is a great opportunity for renewable energy in Australia – the space, the skills and the sun and wind are there. However, the government needs to make sure the market enablers are there – a feed in tariff that is stable and encourages local investment in renewables to drive change is key. Finally don’t let cheap coal stop Australia doing the right thing!” Derry Newman, CEO, Solarcentury

“International Power has invested AUS$5 billion in Australia, and we need to allow 30/40 years for the return on investment. We need to see these investments as long term and allow industry to invest and move into other lower carbon technologies” Phil Cox, CEO, International Power

Olympics – 2012 & Beyond
• The success of the London 2012 Olympics will be measured on more than the games themselves. Success will be measured in terms of the infrastructure and regeneration legacy, the long term tourism figures post event, and the way in which London showcases the city and the British brand to the world.
• The Olympics 2012 can be a facilitator for change as it was for Sydney, Athens and Beijing. These changes will be social as well as structural.
• Newham Borough has been waiting for a project similar to Stratford Westfield for 15 years. The Borough has one of the highest unemployment levels in UK and the redevelopment will provide 30,000 jobs for people who are third generation unemployed. The Stratford Project team is also committed to long term training and employment opportunities for local people, as well as creating opportunities for new small businesses.
• Every facility should have a legacy that is defined at the outset, and flexibility and innovative thinking needs to be incorporated into the design process.