$50 million revamp for Morley

Morley is set to get a revamp – with the $50 million Coventry Square development now out for public comment.                                      

“This is a great step forward for us,” said Greg Poland, the principal of The Strzelecki Group development company that plans to build the project.

“Once the six-week public consultation period has finished we can then start transforming the old Coventry’s warehouse into the ultimate tourist and shopping precinct.”

As well as being built in the heart of Morley – beside the Centro Galleria shopping mall – Coventry Square will be a major part of the new town centre for the City of Bayswater.

If approved, the development will house more than 200 specialty stores, selling everything from fashion, to local arts and crafts.

Mr Poland said the development would include restaurants, cafes, a microbrewery and a fresh food section dedicated to organic produce.

“At a time when the economy is slowing down, Coventry Square will be a real shot in the arm for Morley and the City of Bayswater by creating hundreds of new small businesses and jobs for about 1000 people,” he said.

The Strzelecki Group hopes to open Coventry Square in April next year.

Source  :   www.watoday.com.au

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WA small firms lead recovery from crisis

Signs are emerging that the worst of the global financial crisis is over, according to a new survey, and the State’s small businesses are leading the way.
  
The Commonwealth Bank-Chamber of Commerce and Industry quarterly survey of business expectations, released yesterday, shows that economic conditions in WA appear to be stabilising after six months of decline.
  
CCI chief economist John Nicolaou said that the community could “take heart” from the results and that an economic recovery within the next 12 months was on the horizon.
  
“This survey is an important lead indicator of future economic activity,” he said.
  
“While just over half of all businesses remain pessimistic about the next 12 months, that’s come back from around 75 per cent of businesses that were pessimistic last quarter, and at the same time businesses that think conditions will improve (over the same time) has doubled.”
  
Mr Nicolaou said small businesses in service industries were the most optimistic, with 17 per cent of the firms surveyed believing conditions would improve over the next 12 months.
  
Beaumonde Catering owner Mark Dimmitt said he felt small business was better prepared for the slowdown than in other downturns because it had taken time to flow to Australia from the US.
  
He said that though his trade had been affected and was patchy, February was a record month for his 20-year-old business and he expected an upturn over the next year.
  
Woolworths regional manager Brad Bolin criticised “illogical barriers to doing business”, referring to trading hours in WA.
  
Mr Bolin said “conservative estimates” showed the group would need to employ another 300 staff in WA if trading hours were extended to 9pm.
  
“During this time of economic uncertainty there are still companies (looking) to hire more people — these efforts shouldn’t be undone by illogical barriers to doing business,” he said.
  
Coles and Kmart have said they expected to employ another 350 workers if 9pm trading was approved.

Source www.thewest.com.au

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Swan slams ‘selfish’ CBA rate decision

Treasurer Wayne Swan has taken aim at Australia’s biggest home lender, labelling it selfish for lifting its mortgage and business lending rates. 

Other banks have refused to rule out following the Commonwealth Bank of Australia’s (CBA’s) surprise decision to lift its home and business loan rates by 10 basis points to offset higher funding costs.

The opposition said the government’s huge debt burden was putting pressure on interest rates, while a prominent market economist said it may force the Reserve Bank of Australia (RBA) to cut the official rate again to counter any impact from CBA’s move.

CBA said it took Friday’s decision “reluctantly”, but at a standard variable mortgage rate of 5.74 per cent, up from 5.64 per cent, it was still the lowest on the market.

The rate hike will add $18 a month to repayments on a $300,000 home loan over 25 years.

The bank said it had absorbed as much of its additional funding costs for as long as it could.

“Unfortunately, we have seen the bank’s wholesale funding costs remain high and continue to increase as previous long term funding matures and is replaced with new funding at significantly higher cost,” CBA group executive of retail banking services Ross McEwan said in a statement.

Such reasoning drew no sympathy from the treasurer.

There are ups and downs when it comes to those decisions over time, but there are few decisions I can think of that are more selfish than this one,” Mr Swan told reporters in Brisbane.

“I think Australians, rightly, will be furious with the Commonwealth Bank.”

Prime Minister Kevin Rudd echoed those sentiments during a speech to a business lunch in Brisbane.

“We are all in this together – businesses, workers, government and the Reserve Bank – and today’s decision by the Commonwealth Bank runs counter to this nationwide effort,” Mr Rudd said.

The other three major banks – ANZ, National Australia Bank and Westpac – said their rates were constantly under review.

NAB said it had no current plans to raise its home loan rate but noted “all Australian banks” had been incurring significantly higher funding costs for some time.

Opposition treasury spokesman Joe Hockey said the government was putting pressure on interest rates by running up a huge debt.

“Kevin Rudd and Wayne Swan feigned outrage about this interest rate increase, yet they are directly responsible for it,” Mr Hockey told reporters in Sydney.

“This is the beginning. You will end up with higher interest rates directly as a result of the spending binge of the Rudd government and the massive debt they are accruing.”

Home buyers may be enjoying the lowest mortgage rates in 41 years, but have already missed out on about 30 to 40 basis points of the RBA’s total 425 basis points of official rate cuts, with banks refusing to pass on the cuts in full because of the cost of funding.

For small businesses it has been even worse, being short changed by about 140 basis points.

The CBA’s decision comes in a week that saw massive boosts to both consumer and business confidence, as well as data showing sustained growth in home lending – sucked in by low mortgage rates and a more generous first home owners grant.

April mortgage data showed loan demand has grown for seven straight months to a 14-month high, as well as record demand from first home buyers and the strongest interest from investors in nearly two years.

It also showed that the banks have cornered more than 92 per cent of all loans – a 33-year high.

Westpac chief economist Bill Evans said CBA’s decision could well be countered by another cut by the RBA.

“If it does have an impact, particularly on confidence in the housing market, which has been the most encouraging source of recovery in the Australian economy, it may bring a rate cut back on the table at the Reserve Bank,” Mr Evans told Sky News

Source  :  www.thedaily.com.au

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Premier shifting to 8pm close for shops

Colin Barnett is on the brink of caving in to worried Liberal backbenchers and accepting an 8pm closing for weeknight shopping rather than the 9pm time he took to the election last year.
  
The Premier has been softening the public up for an 8pm closing time in recent days and again said yesterday that it was an acceptable alternative. 
  
The West Australian understands that most Liberals don’t want 9pm and would prefer a 7pm closing time but are prepared to accept 8pm to save the Premier the embarrassment of being rolled by his own party.
  
Mr Barnett has been canvassing his MPs one-on-one in recent days and knows that 9pm is beyond his reach.

The Nationals say they will not support changes to shopping hours, which they fear would deliver a crucial blow to WA producers because it would increase the market share of big supermarkets
   
The Government will rely on Labor to get legislation on later weeknight shopping hours through Parliament but the ALP took a position of 7pm to the election and is not guaranteed to support a later closing time. A Labor spokeswoman said yesterday that shadow Cabinet and caucus would discuss the party’s position once the Government’s preference was known.
 
Cabinet discussed the shopping hours issue last Monday and Mr Barnett is expected to take his preferred position to the party room on Tuesday, but the Upper House is not sitting, and the meeting will be only for Assembly MPs, meaning that a vote on the issue will probably be delayed a week.
  
Mr Barnett said yesterday that most people in the retail industry, including the unions, favoured a 9pm closing time from Monday to Friday to bring all weeknights into line with existing late-night shopping.
  
“That’s a position I think is logical, however a number of people are saying 8pm might be better. I don’t think there’s a big difference between the two,” he said.
  
“To simply extend it to 7pm would be pointless.
  
“So, 8pm, yeah that’s OK, 9pm might be better but at least either of those would be a significant extension to weeknight shopping.”

But backbenchers are under pressure from small businesses to wind back the closing time, believing that the later hour is supported only by Coles and Woolworths.
  
Chamber of Commerce and Industry chief James Pearson urged politicians from both sides to “stand up to vested interest groups, which are determined to deny West Australians more choice and lower prices when they shop”.  

ROBERT TAYLOR, PETER KERR and AMANDA BANKS

Source www.thewest.com.au

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