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Jumping the Hurdles to Oz

By Rob Flemming

“Nothing beats watching the sun come up while out at sea having a great time surfing and then getting into the office feeling fantastic,” said John Green of AustCorp Recruitment, extolling the virtues of life in Australia. “I’m often in the sea at Bondi Beach for a dawn surf before work.”

That was a while back, before the earthquake of global recession saw the world’s economies hanging on the edges of a financial abyss. In the perceived aftermath, however, Australia seems to have managed better than most and the IMF has predicted 3% growth for the country this year.

“Australia has weathered the storm of the Global Financial Crisis (GFC) very well,” commented Marissa Wynne, speaking on behalf of the Prosper Group based in New South Wales. “The Australian government had plenty of money accumulated (in taxes) from our booming resources trade with Asia and they were able to shelter the economy by introducing various stimulus packages into the economy. These government stimuli, along with interest rates reducing to 30 year lows, kept employment levels high and fuelled demand for real-estate.”

And according to the third annual NatWest International Personal Banking (IPB) Quality of Life Index, Australia heads the list of countries preferred by expats.

“The land of sun, sea and sand is judged to have the ingredients for a happier and healthier life, with the majority (78%) of expats citing the better environment and quality of life for their children as the number one reason for being there according to the Index. Nine out of ten expats (91%) cite the overall lifestyle as keeping them in Australia, and four out of five (83%) say the weather is one of the top five reasons for living there.”

Being there is one thing, but getting there may be another.

In late June, Julia Gillard became Australia’s first woman Prime Minister, having ousted Kevin Judd from the top spot. Having been previously pro-immigration, Gillard has had to adapt her views with an election on the horizon. Although the main subject for debate is the influx of illegal immigrants and asylum seekers, especially from Asia, there is a subtext relating to immigrant workers. Welsh-born Gillard, who migrated to Australia with her parents when she was four, says that the immigration of skilled labour is still needed.

“I don’t want business to be held back because they couldn’t find the right workers,” she said. “That’s why skilled migration is so important. But also I don’t want areas of Australia with 25% youth unemployment because there are no jobs.”

The irony of that message has been highlighted by the government’s inability to roll out its new high-speed broadband network. The aim of the project is to connect 10m houses by 2018; a project that will, it is estimated, require 30,000 skilled workers. At present, there is a serious shortfall and the promised training centre in Melbourne has yet to be built. In the absence of available qualified personnel, some recruiters have indicated that they are looking towards people who ‘had left the industry in recent years’.

Although not linked in any way, there is a further irony in the fact that a new specialist labour agreement was signed at the beginning of June between Mentor IMC and the Australian immigration authorities. The three year licence allows the oil and gas servicing group to employ senior expat energy personnel to support an industry sector which is seeing extraordinary growth.

John Richards, CEO of Mentor IMC Group, said: “In over 20 years of selecting senior energy candidates for projects in Australia, we've noticed an increasing shortfall between the availability of and demand for skilled managerial and technical personnel to support our energy sector clients. Through the labour agreement, the Australian government has recognised the value of overseas experts in helping attract new large-scale projects in the region, which will in turn boost the Australian economy.”

Despite the fact that Julia Gillard may have taken over from Kevin Rudd, she has not reversed the Labour policy on immigration. When announcing the new Skilled Occupation List (SOL), the Australian Minister for Immigration and Citizenship, Senator Chris Evans, said that it reinforced the (Rudd) government’s commitment to a skilled migration programme that was driven by the needs of the labour market.

The new SOL, brought in on 1 July, lists 181 occupations that relate to the General Skilled Migration (GSM) programme, a reduction of over 50% on the previous list. However, the number of employer sponsored positions will be increased and the government has indicated that each state will be allowed another 100 places for off-list occupations. Engineers in almost every discipline, health and medical workers from nurses to surgeons and those involved in ICT take up the bulk of the SOL. But there are still a few outside runners such as forester, locksmith and bricklayer.

State Migration Plans, which will bring foreign workers in under state sponsorship, have not as yet been determined. However, the Western Australian government released a list of priority occupations for the area in early July which will play a major role in framing the state’s migration plan. Key occupations on that list include mining engineers, pilots, flying instructors, nurses and panel beaters.

The general system of ‘points needed’ for immigration has not been changed but the values of points linked with specific occupations has been fine-tuned. And the rules in respect of age for most positions remains at the 45 mark at the top end.

Of course, not everybody will be planning to work in Australia. For those hoping to retire to the merry old land of Oz, you’d better have a pile of money and take the red slippers. To obtain an Investor Retirement visa you will need to make a minimum designated investment of A$500,000 in a State or Territory Treasury Bond, prove that you have assets of at least another A$500,000 that can be used to set up your lifestyle in Australia and prove that you have an annual income stream of at least A$50,000 to keep you going! And although renewable, the visa only lasts for four years.

And there’s the housing market. Before you think of a buy-to-let investment in consideration of the lack of housing in the cities, coupled with potential growth and low interest rates – pause. Expats wishing to buy property must apply to the Foreign Investment Review Board which is likely to refuse the application if your purpose is to let or to speculate on appreciation. Not that it’s impossible, through certain agencies. Knight Knox International are currently offering one bedroom units in the newly completed Visionaire Apartments overlooking Sydney Harbour for £263,956 and obviously has foreign investors as its target market.

However, for those people working in or retiring to Australia, purchases can be made providing the plan is to live in said property. The Prosper Group, as a buyers’ agent, specialises in finding property for clients in Australia and Marissa gave Nexus an idea of the current market climate.

The national median price stands at A$468,000, substantially higher than the UK which is currently £165,314 or $286,220 Australian. In the UK, only the figures for London top the Australian price but at A$586,430, that’s higher than Sydney. The latter city is, predictably, most expensive at A$517,250 with an 11.3% change year on year. Darwin, Canberra and Melbourne show rises of between 16.4 and 18.2%, with prices bubbling around the A$500,000 mark. Adelaide brings up the rear with a median of A$387,500 and 10.5% change year on year.

The good news for buyers in New South Wales is that stamp duty has been abolished for the next two years for purchasers buying homes up to A$600,000 off-plan and prior to the commencement of construction. Where properties up to that value are already under construction or have been completed, there will be a 25% cut in stamp duty which will allow serious savings.

As to the outlook for the next couple of years, Marissa wrote:

“Property is a medium to long term investment and the housing cycle in Australia is generally over a 7-10 year period; during which there are always high growth spurts, lows and steady patches. In recent weeks we have seen a reduction nationally in auction clearance rates, going from 74% for April to around 68% for May.

“Vendors have been riding high with expectation and setting high reserves at auctions. With interest rates starting to rise, buyers are now looking carefully at their budgets and being more discerning about the price that they pay for property. We expect to see more moderate levels of price growth in capital cities over the next two years.

“The current cash rate as of June is at 4.5% and the RBA has indicated that the target rate is 4.5% to 5%. RBA Governor, Glenn Stevens said that the RBA’s current setting of rates was ‘appropriate for the near term’ and that ‘interest rates to borrowers are around their average levels of the past decade’.”

But the relative weakness of the Australian dollar does increase expats’ purchasing power and apparently the cost of living is a third lower than it is in Britain. What price dolphins in the bay, sun on your back, steaks on the grill and a glass of chardonnay?

Australia’s Job Market Today

 

Nexus asks Engineering Jobs Australia to supply a snap shot of today's market

While construction activity and employment remain sluggish in the USA, UK and Europe, the economy in AUSTRALIA is recovering strongly and unemployment has once again fallen nationally to 5.1% and to 4.1% in Western Australia.

A nationwide skill shortage is once again looming with the availability of local labour drying up rapidly. Australia currently has 357 major projects in various stages of development valued at over A$338 billion. Eighty projects worth over A$100 billion are currently in construction and estimated to employ 22,500 workers during the construction phase.

The vast majority of Australia’s current and future projects lie in just two states, Western Australia (WA) and Queensland (QLD). WA projects account for 87% of current investment and its capital city (Perth) is home to major Oil & Gas and Mining companies, consultants and contractors. Currently many positions are located in Perth but as projects move into construction phase the vast majority of jobs will be site based with most workers working on a FIFO basis (fly-in-fly-out) on weekly, fortnightly or monthly rotation back to their families in Perth or inter-state.

A small selection of these projects, people sought and the companies recruiting them are listed below.

Although recruiters note that demand is building for a variety of projects across Australia, a widespread need of overseas workers is not yet required and clients are reluctant to review overseas applications. However, with projects in Queensland and Western Australia now competing for the same skills, the situation is beginning to change. During the last boom there was a plentiful supply of inexpensive 457 business sponsored work visas readily available to employ overseas workers but with the last change of government came pressure from the unions, resulting in a shift in migration policy making it much more expensive and difficult to employ non residents.

Some occupations, such as petroleum geologists, subsea and pipeline specialists are very scarce in the local Australian market and companies have been actively recruiting them from overseas. The cost to employ such specialists is expensive but employers have no option but to do so.

As the labour market tightens across all sectors including Oil & Gas, Mining, Engineering and Construction and with an imminent general election, it is quite likely that these policies may again change and open up the labour market once more to overseas workers.

Anyone seriously considering working in Australia should concentrate their efforts on obtaining a residency visa themselves rather than relying on a company to sponsor them. Visa’s can be applied for by visiting the Department of Immigration and Citizenship website http://www.immi.gov.au or by contacting a reputable immigration consultant.

Project and Location: APLNG, QLD
Personnel Required: Cross Country Pipeline Engineer
Recruiter: Energy HR

Project and Location: BP Gas Compression Facility, WA
Personnel Required: Senior Project Manager
Recruiter: Energy HR

Project and Location: Dampier Bunbury Natural Gas Pipeline, WA
Personnel Required: Pipeline Project Engineers – 2 to 10 years experience. Senior Project Manager – 10+ years experience
Recruiter: Energy HR

Project and Location: Fiona Stanley Hospital, WA
Personnel Required: Senior Contracts Administrators, Senior Project Managers, Project Engineers, Building Services Engineers & Project Managers, HVAC & Fire Engineer.
Recruiter: Energy HR

Project and Location: George Fisher Underground Mine – Mt Isa, QLD
Personnel Required: Senior Project Manager
Recruiter: Energy HR

Project and Location: Gorgon Project, WA
Personnel Required: Marine Supervisors, Marine Construction Manager, Environmental Engineer, Planner, HSS Advisors
Recruiter: TECSIDE

Project and Location: Gorgon Project, WA
Personnel Required: Accommodation Villages construction requires Senior Contracts Administrator, Chief Estimator, Planner / Scheduler, Quality Manager, Cost Controller
Recruiter: Energy HR

Project and Location: Hope Downs Iron Ore Project, WA
Personnel Required: Accommodation Villages construction requires Senior Contracts Administrator, Chief Estimator Planner / Scheduler, Quality Manager, Cost Controller
Recruiter: Energy HR

Project and Location: Marandoo (Iron Ore), WA
Personnel Required: Mechanical Engineers, Project Controls Manager, Civil Engineers and Estimators
Recruiter: Lycopodium Minerals

Project and Location: Mount Keith Expansion (Nickel). WA
Personnel Required: Operations Mechanical Engineers, Project Controls Manager, Civil Engineers, and Estimators
Recruiter: Lycopodium Minerals

Project and Location: Pluto Project, WA
Personnel Required: Site Contracts Engineers, Maintenance Manager, Quality Manager
Recruiter: TECSIDE

Project and Location: Ravensthorpe (Nickel). WA
Personnel Required: Mechanical Engineers, Project Controls Manager, Civil Engineers, and Estimators
Recruiter: Lycopodium Minerals

Project and Location: Ravensthorpe (Nickel). WA
Personnel Required: First Quantum Minerals has begun recruiting the Operating workforce to re-commission the Ravensthorpe Nickel. A 9 month manning schedule to recruit a 600+ workforce across all mining disciplines. Current recruitment includes: Plant Manager, Mine Manager, Engineering Superintendents, Process Superintendents, Maintenance and process Supervisors, Maintenance staff.
Recruiter: First Quantum Minerals

Project and Location: Renison Mine - Tasmania
Personnel Required: Underground Project Manager Senior Mining Engineer - Underground
Recruiter: Energy HR

Project and Location: Western Australian Rapid Growth Project 5 (RGP5)
Personnel Required: Iron Ore Construction Manager, Electrical Designers
Recruiter: TECSIDE

Project and Location: Wheatstone LNG Project, WA
Personnel Required: Planner
Recruiter: TECSIDE

Project and Location: Yandi Iron Ore Mine Extension, WA
Personnel Required: Accommodation Villages construction requires Senior Contracts Administrator, Chief Estimator Planner / Scheduler, Quality Manager, Cost Controller
Recruiter: Energy HR

All these job opportunities and more can be found on Australia’s leading Engineering and Technical Job Board. Engineering Jobs Australia http://www.engineeringjobs.net.au

Article added: August 2010