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E L E CT R I C AL CONNE CT I ON
S P R I NG 2 01 5
INDUSTRY NEWS
CONCERNS RAISED
SURROUNDING
SECURITY OF PAYMENT
With recent news of yet another
construction firm going into liquidation
owing millions to contractors and sub-
contractors, concerns continue to be
raised about the stability of payment
for electrical contractors.
“It is usually the case that electrical
contractors are involved in the latter
stages of the building and construction
cycle and are often the last in the
credit line for payment. This becomes
particularly difficult in the event of
the construction firm falling into
receivership as electrical contractors are
treated differently across each state’s
fair trading departments,” National
Electrical and Communications
Association (NECA) chief executive
Suresh Manickam says.
“Electrical contractors enter into
building works in good faith through
the installation of substantial, highly
complex and expensive electrical
equipment. The inequity of market
failure for electrical contractors means
that given they are often one of the
last trades on site, they are last in
line to receive payments, despite the
substantial financial value of their
work toward the completion of the
construction project.”
NECA’s Policy Statement 2015
highlights these concerns and calls
for the harmonisation of the creditor
line process across Australia so
that electrical contractors are not
disadvantaged by the collapse of a
construction company.
“Once again, we call on governments
across Australia to ensure that electrical
contractors are not left in the lurch and
that credit line payment processes are
fair and equitable right across Australia.”
General Cable Corporation has
reached a definitive agreement
to sell its Asia Pacific operations
to MM Logistics Co., Ltd. for cash
consideration of approximately $205
million, which includes preliminary
estimated net cash of $30 million.
The company’s Asia
Pacific operations consist of
businesses in Thailand, China, New
Zealand and Australia.
The company expects to close
the sale of the operations in the
third quarter, subject to customary
closing conditions. Proceeds are
expected to be used to reduce
outstanding borrowings and pay
related fees and expenses.
GENERAL CABLE SELLS APAC OPERATIONS
Precipitated by the Victorian
Metropolitan Fire Brigade (MFB) report
on the 2014 Docklands Lacrosse Fire, the
Senate will hold an inquiry into non-
conforming building products.
The installation of unsafe, non-
compliant electrical equipment can be
costly for business and consumers and
presents the risk of electrical fire and
shocks, property damage and increases
the potential legal liabilities for electrical
contractors. This ultimately leads to a
devaluing of industry standards and a
loss of professional reputation.
A key concern for the industry is
the lack of enforcement of those
distributing non-compliant products
and the lack of product batch testing
of products to ensure quality and
measurement of the performance to
Australian standards.
While examples of prosecution exist,
such as those involved with the sale
and distribution of counterfeit HPM
products in New South Wales, concerns
remain within the industry that more
should be done to protect the industry’s
professional reputation.
SENATE ANNOUNCES INQUIRY INTO
NON-COMFORMING BUILDING PRODUCTS
The number of people starting
apprenticeships and traineeships
declined by 21.9% to 192,000 in 2014
compared with 2013, according to
the latest release of apprentice and
trainee data.
Published by the National Centre for
Vocational Education Research (NCVER),
Apprentices and trainees 2014 - December
quarter
shows that there were 316,400
apprentices and trainees in training on
31 December 2014, a decrease of 18.3%
compared with 31 December 2013.
Comparing data from 2014 with 2013,
the number of apprenticeship and
traineeship:
>
commencements in trade occupations
decreased 16.9%;
>
commencements in non-trade
occupations decreased 25.3%;
>
completions decreased 17.8%; and,
>
cancellations and withdrawals
decreased by 7.6%.
According to the National Electrical
and Communications Association
(NECA), the numbers are “a cause for
concern and action”.
“While electrotechnology
apprenticeship commencements
continue to strongly contribute to the
overall take-up of technical and trade
workers apprenticeships, NECA notes
the drop off in numbers over the past
year which reinforce our concerns about
the looming skills shortage,” NECA chief
executive Suresh Manickam says.
APPRENTICESHIP COMMENCEMENT FIGURES FALL