NSW Business Chamber...media on business issues in NSW. The challenge in 2007/2008 is to lead the...

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NSW Business Chamber Ltd ABN 63 000 014 504

Invigorating Business

nswbusinesschamber.com.auNBC

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NSW Business ChamberAnnual Report 2007

Call > 13 26 96


nswbusinesschamber.com.au


> 01

NSW Business Chamber Annual Report 2007

Report from the Board 2–3

Corporate Strategy 4

Organisational Structure 5

NSW Business Chamber Achievements 6–7

Sydney Chamber of Commerce 8

Policy 9

International Trade 10–11

Workplace Management 12–13

Sales & Marketing 14–15

Defence Industry 16

Australian Business Foundation 17

Regional Operations 18-23

Regional Offices 24

Honorary Life Governors 25

2007 Financials 27

Contents

ABN 63 000 014 504

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Report from the Board

The past year has been a time of great change, with changes to the name and branding of the organisation; the first year for a new Chief Executive Officer appointed in June 2006, and for other key senior managers; significant growth in businesses such as the Australian Business Limited Apprenticeships Centre; and continued strong public policy advocacy during a period of heightened political interest.

A year of consolidation and achievement

Possibly the most dynamic challenge has been the completion of the merger between NSW Business Chamber and the Sydney Chamber of Commerce. The challenge of bringing together two separate organisations and networks has seen the regional and financial strength of NSW Business Chamber blended with Sydney Corporations and the vast network of local Chambers of Commerce.

As importantly, the merger with Sydney Chamber of Commerce will play a critical role in providing a forum and voice for corporate Sydney, and in promoting the business aspirations of Australia’s only global city. It is to the credit of all, particularly the Regional Councils and affiliated Chambers, that the new NSW Business Chamber is stronger than it has ever been.

Our story of change, consolidation and growth is compelling:

More than 32,000 businesses received >membership entitlements and support from NSW Business Chamber. Membership grew by more than six per cent from 30,000 in 2005/2006 to more than 32,000 in 2006/2007 – 5,250 full members and 26,900 associate members.

Almost 12,000 members and clients >attended NSW Business Chamber events on workplace relations, human resources, international trade and business improvement.

Affiliations and alliances with 125 >Chambers of Commerce with the new NSW Business Chamber network.

The Workplace Advice Line handled >more than 23,000 telephone, fax and email enquiries.

The Business Navigation Centre >(13 26 96) handled more than 36,000 calls from members for services other than Workplace Advice.

The launch of an Alliance >with the ANZ Bank.

The Australian Business Limited >Apprenticeships Centre (ABLAC) experienced major growth and produced strong financial results. In 2005/2006 ABLAC placed more than 27,700 apprentices and trainees, surpassing the budgeted target by six per cent.

The participation of 83 members of >Parliament in the annual Pollies for Small Business program.

The release of the NSW Open for >Business Report, the NSW Business Priorities 2007 policy document and the ACT Mid-Term Report Card.

The formation with other State and >Territory Chambers of the Australian Chamber Alliance – allowing NSW Business Chamber to participate in national tenders for the provision of government-funded services and other national programs.

The launch of the booklet > Climate Change: Simple ideas for future growth and commencement of sustainability research.

The completion of the merger between >NSW Business Chamber and the Canberra Business Council, forming a new organisation in the Capital Region with in excess of 600 members.

The appointment of the Hon. Patricia >Forsythe as Executive Director of Sydney Chamber of Commerce and the launch of the Sydney First program, providing a voice for Sydney as the nation’s only global city.

International Trade Services >undertook the successful International Entrepreneurship in Emerging Enterprises program. This program, funded by AusIndustry, has assisted 40 entrepreneurs in the development of their business models. The program is conducted with the support of the Chinese, Malaysian, Indian, Turkish, UK, Chilean and Egyptian governments.



> 03On the policy front, NSW Business Chamber has continued to stake a strong claim as the voice for NSW business. The Policy and Membership team, under Paul Orton, has put in place a clear advocacy agenda for the Chamber. This includes:

Agreement to participate in a national >information campaign supporting the benefits of workplace reform

Submissions to the Australian Fair Pay >Commission annual determination

Submission to the Stein Review into >Occupational Health and Safety in NSW

Federal Government agreement to >changes to record-keeping provisions as part of WorkChoices

Participation in the development >of the NSW State Plan

Agreement by the NSW Government >to restrict the proposed state-wide APEC Public Holiday to the Sydney Metropolitan Area following representations by the Chamber (saving regional businesses in excess of $200 million)

Agreement by Tourism NSW to fund a >regional tourism campaign to promote regional NSW as a holiday destination on the APEC long weekend

Participating in the >NSW IPART Review into Red Tape

Leading a delegation of 19 chambers >of commerce to NSW Parliament calling for the fast-tracking of construction of a dual carriageway for the Pacific Highway

Continued advocacy for cuts to >workers’ compensation premiums (cut by 25 per cent over the past 18 months) and cuts to payroll tax.

2006/2007 has been a year of achievement and I want to place on record my thanks to the Board, CEO Kevin MacDonald, the Council, Regional Advisory Councils, chambers and staff who have all contributed so much to the continued success of the NSW Business Chamber.

Karen Wilson – President

A new name and a new brand are the beginnings of an invigorated businessNSW Business Chamber represents more than 32,000 businesses predominantly in NSW and connects more than 100,000 businesses across Australia through the State and Territory Chamber Network.

NSW Business Chamber’s purpose is to champion the cause and growth of business. Through research, knowledge and policy achievements, we offer solutions that stimulate business growth nationwide and globally.

Karen Wilson Ian Penfold Ian Pollard David Michaelis Roger Hood

Grahame Hutchison Chris Bayliss Trevor Cairney David Gilbert Mary Jo Capps

ABN 63 000 014 504

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Corporate Strategy

Growth and Performance

NSW is the largest state economy, accounting for one-third of Australia’s productive capacity. As the state’s largest business organisation, NSW Business

Chamber needs to focus on leading the debates about the competitive position of NSW. As importantly, we need to seek to inspire, inform, influence and invigorate businesses in NSW.

One of the outcomes of the Strategic Plan undertaken by NSW Business Chamber during 2006/2007 is the enhancement of the organisation’s primary focus on helping businesses comply with regulation by complementing it with the more fundamental issue of helping businesses achieve sustainable growth.

To achieve this, NSW Business Chamber will follow these guiding principles:

We will broaden our focus and seek to >better represent and serve the 300,000 employing businesses in NSW

Using a Business Intelligence function, >we will identify the real needs of business and create products and services that fulfil those needs

We will improve our existing product >and service delivery, including delivering products online, to accommodate a greater range of businesses

We will apply commercial and financial >disciplines, and use the financial strengths of the organisation to support membership/policy initiatives

We will move to a “performance- >driven” culture, with greater accountability, responsibility, communication and customer focus throughout the organisation.

Increase policy influenceThe Chamber will continue its leadership role in public policy through:

Researching and using members’ views >regularly in a workshop situation with Ministers/MPs

Using the Business Intelligence Centre >to identify those policy issues of most importance to members

Undertaking a leadership role in the >media on business issues in NSW.

The challenge in 2007/2008 is to lead the economic and business debate in NSW, to encourage new thinking on issues such as sustainability, and to inspire business to keep growing.

Increase reach and relevanceTo increase the reach and relevance of NSW Business Chamber, the following outcomes and objectives will be pursued:

Secure and maintain 10,000 continuing >full members and 30,000 associate members by 30 June 2010

Develop a sustainable membership >model with enhanced value propositions for members

Ensure NSW businesses are engaged >with NSW Business Chamber Business Sustainability solutions

Improve the range of services and >products by identifying the real needs of businesses to create products and services that fulfil those needs

Increase engagement with local >and regional chambers of commerce

Produce initiatives to >address skills shortages

Build strong and sustainable >partnerships and alliances

Enhance fee-for-service operations >through focused functions with profit goals.

Increase revenue and profitIncreased revenue and profit within the NSW Business Chamber will allow the organisation to use its financial strength for the purpose of encouraging growth, development and sustainability. To achieve this the following initiatives will be implemented:

Provide transparency on business >drivers and expenditure

Implement “white labelling” of >products in other states and overseas

Reduce the cost of servicing >without reducing standards

Improve our existing delivery >and enhance with online delivery

Review, on an ongoing basis, >existing services for relevance.

Increase people performance and engagementTo improve our people performance and engagement, we will:

Move to a performance-driven culture >with greater accountability and communication throughout the organisation

Build better teamwork and >collaboration

Implement an effective intranet >to inform people, to suggest improvements and new initiatives

Refine structure, roles and >responsibilities supported by a Skills Database, career and succession planning, and a new performance management system.

I look forward to working with the President, Board, Councils, affiliated Chambers and staff to make these goals a living reality.

Kevin MacDonald – CEO

NSW Business Chamber is at a stage where we need to grow the thought leadership, intents and actions of the organisation.



> 05

Organisational Structure

Members and Councillors

Board of Directors

Chief Executive Officer

Affiliated Chambers and Partners

Canberra Business Council

Hunter Business Chamber

Illawarra Business Chamber

Australian Business Foundation

Australian Business Lawyers

Business Enterprise Services

Business Partnering Services

Policy and Membership

Business Intelligence Centre

Australian Business Limited Apprenticeships Centre

International Trade Services

Products, Services and Marketing

Finance / IT / Treasury

Human Resources Corporate Services

NSW Business Chamber

Sydney Chamber of Commerce

Market Research and Response

Market Development

ABN 63 000 014 504

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Achievements

In February 2007, NSW Business Chamber announced its new name to members and followed it with the launch of the new brand position, Invigorating Business. Several other state-based Chambers also embraced the new positioning.

Invigoration and Influence

Membership grew to more than 32,000 >in 2006/2007, with 5,250 full members and almost 27,000 associate members. NSW Business Chamber launched a new entry-level membership category offering basic online access to information services.

One hundred and twenty five local >and regional chambers of commerce in NSW are affiliated with NSW Business Chamber. Several have alliance arrangements in place, and three have aligned their name, converting from Chamber of Commerce to Business Chamber.

NSW Business Chamber’s Navigation >Centre answered more than 36,000 calls from members and customers, as well as handling more than 5,500 global email enquiries.

NSW Business Chamber held 38 >workshops and more than 200 one-on-one consultations on recruitment, performance management and termination.

Thirty-one WorkChoices seminars were >held across NSW in conjunction with the Department of Employment and Workplace Relations.

NSW Business Chamber sponsored and >participated in more than 30 events for the Department of State and Regional Development Small Business 2006 September program.

Following changes in OH&S legislation, >NSW Business Chamber held Safety Assistance seminars and OH&S courses; participated in the Sydney Safety Show; re-launched its OH&S products; and sponsored the Health & Safety Reform Conference.

A new Workplace OH&S site was >released, as well as a new version of the OH&S Toolkit, OH&S Advance. Succession Planning, a new business improvement product, was launched.

Major NSW Business Chamber >publications this year included NSW Business Priorities 2007, Capital Region Business Priorities 2007, the Mid Term Report on NSW Government, and Climate Change: Simple ideas for future growth. The first of the 10 Minute series of publications – six booklets on industrial law changes for small to medium sized enterprises – was launched. The organisation’s flagship publication was also revamped and renamed Business Connect magazine.

Revenue from products and >services increased by 30 per cent.

Alliance partners working with >regional chambers included Telstra CountryWide, NRMA and ANZ. NSW Business Chamber and Telstra launched the new 3G network to more than 250 members and non-members.

New alliance partners include the >Caravan and Camping Association and the Society of Supply Chain Professionals.

Eighty-three per cent of members >expressed satisfaction with their membership, with 90 per cent saying they intended to recommend the organisation to others.

International TradeAustralian Business International Trade >Services held 23 events, with more than 800 participants attending.

Another TradeStart manager was >appointed, in Mascot, and a new TradeStart position was created to service mining technology and services companies in NSW, Queensland and Victoria.

In April 2007, International Trade >Services and the Changsha Commerce Bureau hosted the Changsha Trade and Investment Conference for 450 Chinese and Australian business people. Contracts worth more than $US2.3 billion were signed.

Events were run in Sydney and Brisbane >with the Board of Investment Thailand to promote bilateral trade and investment in Thailand. A group of nine TradeStart and other clients travelled to Bangkok for Thaifex: World of Food 2007.

In mid 2007, Australian Business >International Trade Services won the contract to run the NSW, ACT and National Secretariat for the Australia India Business Council (AIBC).

Australian Business International Trade >Services won the tender to run the National Secretariat of Austmine.

We’ve been busy...



> 07Australian Business Limited Apprenticeships Centre

The Australian Business Limited >Apprenticeships Centre began its fourth contract with the Department of Education Science and Training to deliver apprenticeship and traineeship facilitation services for a three-year period.

The Apprenticeships Centre and the >Victorian Employers Chamber of Commerce and Industry founded the Australian Apprenticeships Alliance (AAA) to provide a nationally consistent approach to servicing.

Australian Business LawyersIn October 2006, Australian Business >Lawyers was a joint winner of the NSW Law Society’s Equal Employment Opportunity Award for Small/Medium practices.

The practice employed another partner >and two new senior associates to meet the demand for advice on corporate and commercial law matters.

In late 2006, Australian Business >Lawyers launched its first online training product to expand its geographic reach and lower the cost of delivery of its Equal Employment Opportunity training.

Working with government In July 2006, NSW Business Chamber >hosted the ACCI Council dinner with Prime Minister John Howard, attracting more than 300 participants.

Submissions were made to government >in the areas of workplace relations, workforce skills and participation, climate change, workers’ compensation and OH&S.

The publication > NSW and Capital Region Business Priorities 2007 was produced in the lead-up to State and ACT elections.

NSW Business Chamber successfully >argued for the use of market-based mechanisms to internalise the cost of carbon in the economy; for revenue neutrality of any climate change action; and for Federal ownership of any Australian emissions trading scheme.

NSW Business Chamber also >successfully argued for the restriction of the APEC public holiday to the greater metropolitan area, saving regional businesses in NSW a potential cost of $200 million.

‘ The new brand and name is designed to invigorate, influence and inform our existing and potential members as we spread our advocacy throughout NSW with the 125 local and regional chambers of commerce in NSW affiliated with NSW Business Chamber.’

After working together as a team... ...let’s celebrate our results!...and we believe high-fives are in order.

ABN 63 000 014 504

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Sydney Chamber of Commerce

Sydney’s future as a leading global city

Sydney Chamber of Commerce has continued to go from strength to strength in its mission to promote Sydney as the number one place to live, learn, work and do business.

Membership of the Sydney Chamber of Commerce is drawn from the leading businesses and institutions across the Sydney metropolitan area. The Chamber has three levels of membership to suit various business needs.

Sydney First Sydney First aims to harness the considerable skills and expertise of our business leaders to grow Sydney’s reputation as a global city. It has taken on the role of lobbying government to remove barriers which impede Sydney’s growth and development as a global city.

In February 2007, Sydney First was launched at a black-tie gala event at the Westin Hotel. Guest speakers John Watkins, Deputy Premier, and Clover Moore, Sydney Lord Mayor, both welcomed the creation of Sydney First. The launch brought together leading members of the Sydney community including the guest panellists Max Moore-Wilton, Nick Greiner, John Singleton, and Fergus Linehan.

Members which have participated in Sydney First are ANZ, Clayton Utz, EnergyAustralia, GM Holden, Heart Foundation, Integral Energy, KPMG, Macquarie Bank, Macquarie University, Marsh, Mission Australia, National Australia Bank, PricewaterhouseCoopers, Qantas, Rothschild, SITA Environmental Solutions, Snowy Hydro Limited, Standards Australia, Star City, Sydney

Airport, Sydney Ports Corporation, Sydney Festival, Sydney Swans, Sydney Water, Transgrid, Transfield Services and Transurban. The Sydney First program provides members with exclusive access to political decision makers through our series of regular Boardroom events. Members also have the opportunity to provide input into the Chamber’s policy and advocacy positions.

Policy and AdvocacyThe Sydney Chamber of Commerce actively lobbies Government and Opposition on issues which impact its members and the wider business community. The Chamber is regularly consulted by government to ensure that policy and legislation reflects the needs and aspirations of the business community. The Chamber consults with members through our regular events and taskforces, so that their views can be expressed through our advocacy work.

Over the past year, the Chamber has achieved significant progress in promoting issues of critical importance to the business community including:

In a major policy drive, the Chamber >lobbied the NSW Government and Opposition on the need for an integrated transport plan for Sydney. The NSW Government has since said transport is the number one priority. The Opposition has endorsed a policy supporting an integrated transport plan

Elevating the importance of energy >privatisation to government and actively participating in the Owen Inquiry into Energy. The Inquiry has subsequently recommended the privatisation of retail energy

To achieve better management of >public utilities, the Chamber called for privatisation of uncompetitive state assets, such as Sydney Ferries. The subsequent inquiry into Sydney Ferries is currently investigating the issue of privatisation.

In May 2007, the Sydney Chamber of Commerce commissioned the University of Sydney and Professor Ed Blakely to conduct an independent report into Sydney’s local government structures. The report sought to question whether our current city governance structures best serve the interests of the business and wider community. The report is the first of its kind in Australia to be advocated by a peak business group.

Events Apart from the opportunity to influence policy debate, Chamber members have access to high level networking events where they can discuss key issues and meet potential clients, suppliers, partners and competitors.

The Sydney Chamber of Commerce offers members a variety of events including the Sydney and Metro Business Forum, Board of Directors Forum, Legal Counsel Forum, Corporate Affairs Forum, Human Capital Management Forum, Risk Management Series, and the Executive Assistant Forum.

Other regular events include Sydney First boardroom briefings. These events offer members unparalleled access to key decision makers in business and government, including a quarterly event with the NSW Treasurer, Michael Costa.

Recent guest speakers have included numerous State and Federal politicians including the NSW Premier, Morris Iemma, as well as Malcolm Turnbull, Philip Ruddock, Julia Gillard and Wayne Swan.

All of our events are supported by our valued partners: ANZ, Australia Post, Dibbs Abbott Stillman, GM Holden, IBM, Hays Recruitment, Qantas, Parker & Partners, Protiviti, Sydney Ports, Sydney Airport, Unisys, Visa, Vodafone, Westpac and Hunter Valley Wine Region.



> 09

Policy

Sydney’s future as a leading global city Action and Advocacy

NSW Business Chamber made important contributions in the areas of workplace relations; workforce skills and participation; climate change; workers’ compensation; and occupational health and safety.

The publication of NSW Business Priorities 2007 and ACT Business Priorities 2006 supported the Chamber’s lobbying at the NSW State level in the lead-up to the State and ACT Territory elections. NSW Business Chamber also published a report card on the Iemma Government’s efforts to make NSW “open for business”.

NSW Business Chamber standout wins during the year for all NSW businesses included reducing workers’ compensation premiums; streamlining record-keeping; an amended definition of “pay” for personal leave under WorkChoices; and preventing the extension of the APEC public holiday across the entire state.

The NSW Business Chamber directed much of its effort in 2006/2007 towards helping businesses deal with issues relating to workforce skills as well as educating members on the impacts of climate change.

Key contributions included:

Recommendations to the Federal >Government that resulted in the establishment of new Australian Industry Productivity Centres, as announced in the Government’s Industry Statement. Forty-five business advisors will be available to businesses around the country to help improve productivity.

In December 2006, NSW Business >Chamber helped secure a five per cent reduction in premiums for workers’ compensation policies renewed on or after 31 December 2006, saving NSW businesses $130 million. In June this year a further reduction of five per cent for policies renewed on or after

30 June 2007, was granted, making a total of 25 per cent in premium reductions since 2005.

NSW Business Chamber continued >to advocate for reform of the NSW Occupational Health & Safety Act while continuing to assist businesses to meet their OH&S obligations through seminars, training and one-on-one consultation.

Action on 80 per cent of NSW Business >Chamber recommendations in the NSW Government’s draft Bill revising the NSW OH&S Act 2000.

Streamlined record keeping; amended >definition of “pay” for personal leave; publication of pay scales under WorkChoices.

Thirty-eight workshops and more than >200 one-on-one consultations were conducted to assist employers with staff recruitment, performance management and termination.

NSW Business Chamber had urged that >there be national rather than state ownership of any emissions trading regime to properly price the cost of climate change. The announcement in early June that the government would accept the recommendations of the Prime Minister’s Task Force on Climate Change represented a win for business. The Chamber also provided advice to members on the potential for more regulation and changing market expectations arising from climate change. To this end, it published Climate Change: Simple ideas for future growth.

The decision not to extend the APEC >public holiday across the state saved regional businesses in NSW a potential cost of $200 million. In addition, the government and Tourism NSW picked up the Chamber’s recommendation to fund a “Get Out of Sydney” weekend to boost regional tourism.

Four Regional Industry Careers >Advisors helped members to work with school-based career advisers, including through Regional Careers Expos, on increasing knowledge of industry career paths.

Federal Government funding was >secured to improve the connections between school leavers and employers to show the world of work as it really is.

Employers were assisted to find skilled >employees or skill up their workers, and gain access to Federal and State incentives to help pay for training or offset wages.

Advice was provided on skilled >migration under 457 visas.

State Government and the NSW >Business Chamber worked with Local Government and Shires Association on improving accountability and effectiveness in local government, and on streamlining the planning process and the application of development levies to infrastructure.

NSW Business Chamber also made submissions to the NSW Law Reform Commission (Jury Service); the Industrial Relations (Child Employment) Bill 2006; the Australian Fair Pay Commission 2007 Review of minimum wages; the Child Employment Principles Case 2007; the NSW State Wage Case 2007; and the IPART Inquiry into current and future skills needs.

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Product Panel text - Australian Business is a wholly owned subsidiary of NSW Business Chamber.

NSW Business Chamber represents over 30,000 businesses in NSW and connects over 100,000 locations covering 1.5 million

employees across Australia through Australian ChamberNet. Australian Business harnesses the research, lobbying and policy

achievements of NSW Business Chamber to offer the best possible business support.

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Invigorating Business Results


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The services detailed within this brochure may be supplied by NSW Business Chamber Limited,

one of its related companies, or in association with pre-selected companies and service

providers. The information contained in this brochure is current as at April 2007.

NSW Business Chamber140 Arthur StreetNorth Sydney NSW 2060Locked Bag 938North Sydney NSW 2059t > 13 26 96f > 1300 655 277e > [email protected]

NSW Business Chamber represents over

30,000 businesses in NSW and connects

over 100,000 locations covering 1.5 million employees across Australia

through ChamberNet.NSW Business Chamber’s purpose is to

champion the cause and growth of business.

Through research, knowledge and policy

achievements, we offer solutions that

stimulate business growth nationwide

and globally.

Printed on 100% recycled paper

Climate change: Simple ideas for future growth has been co-funded

by NSW Business Chamber and the NSW State Government.

For more information on climate change and your business visit

nswbusinesschamber.com.au/climatechange

To learn more about how the NSW Government is responding to

the climate change challenge visit greenhouse.nsw.gov.au


Simple ideas for future growth

Climate change

Invigorating Business Results

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In 2006/2007, NSW Business Chamber focused attention on the following areas: action needed from business and governments to continue to grow a dynamic workforce; strengthening the performance of Government; staying competitive as a State (NSW) and a nation; renewing economic infrastructure; and meeting the challenge of climate change.

ABN 63 000 014 504

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International Trade

Building your Global Future

This year the International Trade team continued to help clients achieve sustainable long-term growth for their businesses. The team’s 19 staff members, speaking 14 languages between them, used their extensive network of business contacts in such countries as Chile, China, India, Thailand and the US.

During 2006/2007, International Trade built further on its strong links with international businesses and foreign governments, including internationally focused associations both here in Australia and abroad.

Twenty-three events were held, attracting more than 800 attendees.

Growth opportunitiesNSW Business Chamber is still the largest private sector provider of Austrade’s TradeStart program, generating more than $75 million in export revenue for its clients since 2002. Over the past year the TradeStart team has expanded to include another TradeStart manager in Mascot, and a newly created mining-focused TradeStart position to service mining technology and services companies in NSW, Queensland and Victoria.

A group of nine TradeStart and other clients travelled to Bangkok for Thaifex: World of Food 2007, led by Canberra-based TradeStart Manager Robert Chua, whose assistance and knowledge of the market was invaluable.

International connectionsChinaFollowing the success of the Australian Guangdong Business Conference in 2005, International Trade Services worked with a number of Chinese delegations in 2006/2007. In April the team co-hosted, with the Changsha Commerce Bureau, the Changsha Trade and Investment Conference. The event brought together 450 Chinese and Australian business people and resulted in the signing of more than $US2.3 billion in contracts. Together with a delegation from Zhuhai, International Trade also hosted a networking seminar for around 100 participants.

International Trade Services also continued to strengthen its business relationships with China by signing a number of Memoranda of Understanding (MOUs) that will create opportunities for the team and their clients. MOUs were signed with the China Chamber of Commerce in Australia, the Changsha Commerce Bureau, and the China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE).

ThailandThis year International Trade worked with the Board of Investment Thailand to promote bilateral trade and investment opportunities. Two events and a number of business matching meetings were run in Sydney, and a program of business matching meetings were held in Brisbane.

International Trade Services has secured this contract for next year and is planning to run an event in Auckland.

United StatesIn early 2007, International Trade Services signed a contract to work with the Illinois Department of Commerce and Economic Opportunity on a series of education workshops about doing business in Illinois, as well as organising a number of business matching meetings.

This new relationship created more opportunities for those clients looking to do business in the US.

Enhancing the networkAustralia India Business CouncilIn 2007, International Trade Services won the contract to run the NSW, ACT and National Secretariat for the Australia India Business Council (AIBC). AIBC is a high-profile business organisation that every year runs more than 30 events, each attended by more than 100 people, and attracts such speakers as Prime Minister John Howard and NSW Premier Morris Iemma.

This new link has created multiple networking opportunities for the team, both within the business community and with the Indian government in Australia. The AIBC connection will also bring significant opportunities for members to meet with visiting Indian business delegations.

AustmineInternational Trade‘s connections in Latin America led to its winning the tender to run the National Secretariat of Austmine. This nationwide association has about 100 Australian mining services and technology members that are engaged in international markets. Austmine supports its members through a number of unique promotional opportunities offshore, as well as publishing a number of member publications.

The mining TradeStart manager works very closely with Austmine to reach companies eligible for the TradeStart program.

NSW Business Chamber’s International Trade Services, which continues to operate under the Australian Business brand, assists members to successfully enter new markets, expand in existing ones, establish an in-market presence, and source products offshore.

‘ The team’s 19 staff members, speaking 14 languages between them, cover an extensive network of business contacts in such countries as Chile, China, India, Thailand and the US.’



> 11Sustaining global businessIn 2006, International Trade won two major government tenders, one with AusIndustry and the other with the Department of Foreign Affairs and Trade.

Instilling International Entrepreneurship in Emerging Enterprises is an international business development program for 40 entrepreneurs. The program included 10 workshops over a 12-month period, as well as individual mentoring, and visits to internationally focused companies, ports and other providers that have been successful internationally. The program created a number of new TradeStart clients, as well as members for NSW Business Chamber.

The Council of Australian-Arab Relations (CAAR) Young Professionals Exchange Program will bring a young Arab professional from each of the 22 Arab League of Nations to Australia for a business development program in November 2007. There will be a number of workshops on doing business in Australia, as well as social and cultural activities. The major activity is a work experience placement with an Australian business for each of the participants. The program is sponsored by Etihad Airways, who will fly all of the participants from the region to Australia.

Increased supportThe Sydney team has increased again this year, with two new team members joining the export documentation team. Export documentation services are now also offered in the Tweed.

Case studyShaw of AustraliaThere are only four large blind material manufacturers in Australia, and with market share based largely on the location of the business, Shaw of Australia sought to grow by moving into international markets. The company now has a very strong export focus.

“Textile manufacturing in Australia, especially in clothing manufacture, is considered a dying industry,” says Shaw’s general manager, Bradley Awerbuch. “But we have a niche product – which is certainly the only way Australian manufacturers can grow, because they can’t compete on production or price. Entering the export market was really the start of ensuring our future.”

The company invested heavily in developing export markets. The move took a strong commitment from the top, and the Shaw’s internal technical know-how was critical in developing a product that was internationally viable and competitive.

“Coming up with a product that was right for the market and met international standards was the biggest challenge we faced,” says Awerbuch. “We started visiting other countries and showing retailers our products. We also joined NSW Business Chamber because of its strength in international trade and made a lot of contacts through that membership.

“Because our R&D has put our product so far ahead, even China is a large market for us. And as a result of the improvements we’ve made to our product, our domestic market share has also increased.”

The export program also helps to balance the seasonal nature of the products and keep production levels steady throughout the year. This has allowed Shaw to retain permanent staff rather than relying on contract labour in peak periods.

ABN 63 000 014 504

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Workplace Management

Australian Business Limited Apprenticeships Centre (ABLAC)Skills shortages were again a priority for the Government and this year saw an increase in the financial incentives available to employers and apprentices. ABLAC maintained its commitment to building skills for Australia’s businesses and has placed more than 6,000 apprentices in areas across the state where there are skill shortages.

It also focused on increasing workforce participation and industry capability. ABLAC continues to place many trainees and apprentices in sectors where the unemployment rate is higher than the average – for example, in parts of the community where there are numbers of indigenous, disabled and mature age workers.

ABLAC added to its web portal to make it more convenient for clients, and increased its contact with customers to assist them in managing their existing apprentices.

In February 2007, ABLAC and the Victorian Employers Chamber of Commerce and Industry founded the Australian Apprenticeships Alliance (AAA). The new body will provide a nationally consistent approach to servicing, as well as the most comprehensive coverage available in the market, via on-the-ground support and a web portal that national or multi-state employers can use to track the progress of their apprentices and trainees.

In 2006, ABLAC commenced its fourth contract with the Department of Education, Science and Training to deliver apprenticeship and traineeship facilitation services for the next three years. ABLAC now assists more than 17,000 employers with their apprenticeship and traineeship needs across the state.

Employer demand for ABLAC services has seen market share grow by four per cent.

Supporting and Advising

Case studyToyota AustraliaIn 2001, Toyota Australia developed a project, called T3, in conjunction with TAFE and the Toyota dealer network whereby selected Year 11 and Year 12 students spend one day a week in paid employment with a Toyota dealer, half a day at TAFE, and the rest of the time at school. The traineeships count towards students’ higher school certificates.

The program began by offering mechanical servicing traineeships. It now includes business administration and automotive sales – replacement parts and accessories.

Stewart Automotive in Sydney takes on three to five students each year and most of them stay on to complete their apprenticeship.

“The students gain a TAFE certificate at the end of the two years,” says Stewart’s human resources manager, Claire Fortuin. “Most then have the opportunity to enter into the second year of an apprenticeship, usually with the dealership they’ve been working with. It’s a great way of accelerating an apprenticeship.”

The program has created benefits far beyond attracting recent school leavers. “We pride ourselves on excellent customer service,” says Fortuin. “Ensuring all our staff have the right skills to maintain this high level of customer service is helping to build the company’s reputation and advantage in the market.”

Stewart Toyota has been working with Stacey Cox, Australian Business Limited Apprenticeships Centre’s field consultant, to develop a trainee program in the motor vehicle sales area not covered by the T3 program. Every person who joins the company as a sales person is offered the opportunity to complete the Certificate III traineeship.

“Our employees are very happy that we give them the chance to get formal qualifications,” says Fortuin. “The program has had a very positive effect on staff morale and staff retention.”



> 13Australian Business LawyersIn 2006/2007, Australian Business Lawyers was again recognised as among the best operators in its field. In October, it was a joint winner of the NSW Law Society’s Equal Employment Opportunity Award for Small/Medium practices. It was also one of four finalists in the Australian Legal Business (ALB) Law Awards in the category Employment Specialist Law Firm of the Year.

In late 2006, Australian Business Lawyers launched the first of its online training products, aiming to meet client demands for alternative delivery of its Equal Employment Opportunity training. This product has been taken up by a significant number of large corporates, and many smaller companies with tens of thousands of employees taking the course online.

A key area of Australian Business Lawyers’ work is in understanding and applying the laws that govern industrial relations, enterprise bargaining, employment, discrimination, and occupational health and safety. This degree of specialisation and depth of resources has been invaluable in helping to guide NSW Business Chamber members through the WorkChoices legislation. It has enabled Australian Business Lawyers to:

Develop innovative products and >activities to assist members, including a handbook on navigating the WorkChoices legislation

Conduct an extensive program of >briefings and training workshops

Host strategic reviews by industry >sectors to educate industry leaders and human resources managers on the effects of WorkChoices in their industries

In association with the NSW Business >Chamber’s Publications Unit, continually promote and update HR Advance, a WorkChoices-compliant resource for small and medium businesses.

The Corporate and Commercial business practice of the firm grew significantly during the year. It acted in a number of major transactions, as well as assisting a significant number of NSW Business Chamber members in a variety of commercial law matters. From terms of trade through to intellectual property disputes and commercial litigation, Australian Business Lawyers added value to members’ businesses. Its substantial growth has seen the appointment of another partner and two new senior associates.

Occupational Health and Safety (OH&S)The OH&S Unit continued to provide members and clients with critical support in the area of occupational health and safety.

As well as delivering public training courses and company-specific consulting services, the Unit completed four WorkCover Assist projects. The projects ranged from an online educational program to help accountants assist their clients with workers’ compensation, to up-to-date information sessions on the NSW OH&S regulatory environment. Delivered with financial support from WorkCover NSW, the WorkCover Assist program has been an important and effective means of providing information to members and other employers.

The Unit also provides critical continuing input and support for the NSW Business Chamber’s online OH&S products and services.

The NSW OH&S system remains the most stringent in Australia. While there is no doubt that workplace safety in NSW is improving, it is not improving as fast as it is in other jurisdictions that have less onerous systems. Reform of the NSW OH&S system remains a high priority for the NSW Business Chamber. We will continue to pursue changes that provide for a fairer but still effective occupational health and safety system for NSW.

Workplace Advice Unit The Workplace Advice Line remained a core service of NSW Business Chamber, providing members with access to a wide range of information and advice on workplace and industrial relations matters.

Apart from handling more than 23,000 telephone, fax and email enquiries during the year, the Advice Line also guided members through award wage rates and other online information available from the NSW Business Chamber website. There have been almost 6,000 hits this year on the pay scales and wage rate schedules prepared by the unit.

Federal Workplace Relations legislation and its amendments affect the majority of members and are the subject of most of the inquiries to Workplace Relations Advisors. The Unit continues to be at the front line of helping members understand, comply with and use WorkChoices to better meet the needs of their businesses and workforces.

ABN 63 000 014 504

> 14

Sales and Marketing

Member services – Navigation CentreThis year NSW Business Chamber’s Navigation Centre handled more than 36,000 calls from members and customers, as well as more than 5,500 email enquiries from all around the world.

The Navigation Centre assisted businesses through NSW Business Chamber’s products and services, the services of alliance partners, and research from other member companies, the business community at large and government and academic sources.

Callers’ needs varied widely. They sought information on preparing a tender document, purchasing a franchise, introducing company policies such as email and non-smoking policies, and grants available for small business. Insurance referrals and statistical information were also provided.

In 2006/2007, membership and reach of the NSW Business Chamber grew significantly. The New Member Directory was released in June 2007 and was favourably received.

Following suggestions made at the 2006 November Regional Presidents’ meeting, a Drought Assistance policy was developed whereby members operating primary or secondary industries in drought-declared areas can receive six month’s relief on payment of membership fees.

Australian Made campaignThe 2006-2007 year was an important one for the Australian Made Campaign, which celebrated its 20th anniversary in November 2006 with a function in Parliament House Canberra attended by Prime Minister John Howard and numerous other invited guests.

The year saw Australian Made continue to gain strong support from the furniture industry in particular, with many new large and small licencees coming on board. More importantly, key partnerships were forged with major furniture retailers Forty Winks and Harvey Norman. These partnerships give the logo increased visibility at point of sale, and drive new licencees to the Campaign.

In June 2007 the Australian Grown Campaign was launched with a name change to Australian Made, Australian Grown Campaign. The launch was supported by a paid television advertising campaign with funds provided by the Department of Agriculture, Fisheries and Forestry. With Australian Grown the logo can now be licenced for use with complying fresh and processed foods. Woolworths, Coles and ALDI have all become licencees, and the green and gold triangle will soon be seen extensively in their stores and in their advertising and promotions. Major processors such as Simplot have also joined Australian Grown, and more will follow.

The year ahead promises increased growth for the Australian Made, Australian Grown Campaign and even more strength for the trademark logo.

Alliances Alliances continue to play an important part in the organisation, particularly with NSW Business Chamber’s membership, many of whom are referred to alliance partners for solutions.

NSW Business Chamber’s alliance with ANZ continues to assist members with the special banking package available to members. A number of local and regional chambers have also engaged NSW Business Chamber via an alliance agreement.

Chambers of Commerce One hundred and twenty-five local and regional chambers throughout NSW are affiliated with NSW Business Chamber. Of these, 25 have alliance arrangements in place, and three have voted to change their name from Chamber of Commerce to Business Chamber, thereby strengthening the ties between NSW Business Chamber and the local Chamber.

Connecting to our members



> 15Product and Service MarketingThe year was one of considerable change and challenge for the Products and Services Unit. Revenue increased by 30 per cent with the acquisition of third-party distribution channels for reselling NSW Business Chamber’s products and services, confirming the commercial viability of products.

Major NSW Business Chamber publications this year included NSW Business Priorities 2007, Capital Region Business Priorities 2007 and Climate Change: Simple ideas for future growth. The first of the 10 Minute series of publications – six booklets on industrial law changes for SMEs – was launched. Additionally, online publishing websites (www.workplaceInfo.com.au and www.workplaceOHS.com.au) continued to grow.

A major challenge was the migration of commercial websites to a new IT platform. The work already done on Workplace OH&S has created a solid basis for all the commercial sites.

NSW Business Chamber launched new business products and services aimed at helping business compete more efficiently at different stages of their business lifecycle. These included:

New member benefits from our alliance partners, including the Presidential Card, ANZ business banking offer and Allianz Business Cover Plus workers compensation and CTP insurance

Membership Directory – a revamped online directory promoting member listings and special offers

Business Vitality Tools Marketing – a comprehensive marketing CD with tools and resources to boost marketing impact

Succession planning service – a customised exit planning program designed to maximise the saleability and/or longevity of a business

OH&S Advance – a resource-filled CD with tools, templates and advice on how to manage OH&S requirements

OH&S Training – a complete schedule of accredited and nonaccredited training courses

Pay Office Companion – an online resource for payroll professionals.

Reinvigorating the brand Following member ratification on 24 November 2006, Australian Business Limited changed its name to NSW Business Chamber Limited. The new name represents an opportunity to reinforce NSW Business Chamber’s aspiration to be the “best and most influential business support organisation in NSW”.

To complement the name change, a fresh brand – Invigorating Business – was launched in May. Members received a new-look membership folder containing valuable case studies, business tips and checklists clearly segmented under seven service pillars.

The Invigorating Business brand articulates the benefits of doing business with NSW Business Chamber in a relevant and exciting way, supported by new visual design and content that emanates vitality, future focus, innovation and continuous renewal.

Business connectionsNSW Business Chamber connected more than 16,000 business people through their events program in 2006/2007, with standout events including:

Hosting 300 guests at the July >ACCI Sydney dinner featuring the Prime Minister

Delivery of 34 Department of >Employment and Workplace Relations (DEWR) Employer Advisory Program workshops. More than 1,410 businesses learned about the impact of WorkChoices on their business

Delivery of the DEWR National >Advisory Network Program, including 38 workshops and 246 consultation meetings around NSW to promote business awareness of OH&S responsibilities

Principal sponsorship of participation >in more than 30 events for the Department of State and Regional Development’s Small Business September initiative

Recognition of member excellence >at our Annual Dinner Awards on November 24. More than 470 businesses from around NSW attended, with key corporate sponsors including ANZ and Austrade. A strong line-up of speakers included the NSW Premier Morris Iemma, James Strong, Mick Doohan and David Koch.

ABN 63 000 014 504

> 16

Defence Industry Unit

Championing the industry cause

The Department of Defence, as the Federal Government’s largest procurer of goods and services, offers significant growth opportunities for member companies. The Defence Budget is planned to grow to $22 billion in the present financial year, and Australian industry will undertake some 60 per cent of all planned spending on acquisition and sustainment. The DIU is well placed to help members understand and benefit from these opportunities.

The Department of Defence will replace 80 per cent of its capability over the next 10 years, offering significant opportunities and challenges for Australian industry. As well, more than $3 billion is forecast to be spent annually in areas such as infrastructure development, information technology and support services.

During the financial year 2006/2007, NSW Business Chamber’s defence industry members benefited from the services of the DIU in many ways.

Specialist adviceThe DIU’s business Advice Line continues to be highly regarded by members, and is an invaluable source of information, advice and business intelligence. Advice line topics included ongoing and upcoming defence projects, policy guidance, contacts, business entry points, defence exports and contracting issues.

The DIU also conducted regular defence business consultations with member companies during the year, assisting members to track emerging commercial opportunities and resolve issues of concern. This service is seen as an invaluable tool for companies seeking entry into the defence market.

Regular intelligenceThe DIU Enews continues to be a unique source of defence business intelligence, business opportunities and networking events issued to members on a regular basis.

In addition, the DIU Enews-Tender Supplement, issued weekly and covering all Defence tenders and selected Government (Federal and State) tenders, continues to be well received by members, and is particularly valued by small to medium enterprises. Members seek more information on the business opportunities identified in the Tender Supplement on a regular basis.

Professional representation The DIU continued with a number of industry-led focus groups in 2006/2007, covering the following areas:

Defence Support Group – >Services and Infrastructure

Information and Communications >Technology

The supply of support services to >the Defence Material Organisation

Education and Training services. >

The groups aim to improve the relationship between defence and industry, provide an industry-specific forum for frank and open discussion, and develop resolutions for matters of concern to industry. Results have been very positive in improving the relationship with Defence and, in particular, the business environment for members.

Policy representationIn 2006, the Government announced a significant review of Australia’s Defence Industry Policy. The DIU, in addition to attending a number of industry-specific workshops, submitted a very detailed submission to the Minister of Defence’s Policy Review Team.

The new policy was released in March 2007 and included a detailed implementation plan. In broad terms, all the major recommendations of the DIU submission were incorporated in the review, with more than half of the detailed recommendations incorporated in the new policy.

The DIU will continue to review the progress of the implementation plan. It will also participate as a member of forums such as the Capability Development Advisory Forum and its working groups to ensure there is input into the new policy and its implementation.

Briefings and networkingDuring the year Australian Business Defence Industry Unit conducted 13 briefings involving key defence procurement decision-makers and targeting priority defence procurement issues.

Keynote speakers included the CEO of CrimTrac, the Director-General of ASIO, the Head of the Defence Support Group, the Head of the Industry Division and the Shadow Minister for Defence. The DIU also conducted detailed briefings for members on the Defence Budget, the Defence ICT Strategy and the Defence Material Organisation Support Services panel.

In addition, the DIU continued its Tender Training courses and now has in place a series of courses that assist members tendering to both the Department of Defence and the Federal Government. Six courses were run in 2006/2007, both for individual company representatives and on a company basis, with some 75 members attending.

The Australian Business Defence Industry Unit (DIU), part of NSW Business Chamber Limited, continued its commitment to helping members maximise their business opportunities in this unique sector by providing specialist defence-related business advice, as well as representing the interests of Australia’s defence industry to the Department of Defence, and to Federal, State and Territory Governments.



> 17

Australian Business Foundation

The Australian Business Foundation, founded by the NSW Business Chamber a decade ago, draws on its research to help Australian businesses and policy-makers respond productively to an increasingly competitive global business environment.

Clear sights on the future

The Foundation’s extensive body of research and active engagement with a range of business and civic leaders has produced a wealth of intelligence on business innovation, new models of competitiveness and opportunities arising from the knowledge economy.

While others remain mired in debate, the Foundation is able to provide a clear vision of what is really going on and what really matters. Its research insights offer a fresh approach, informing contemporary debate on the issues and underpinning effective advocacy.

Among the Foundation’s achievements in 2006/2007 was the release of three important research studies.

Australian Innovation in Manufacturing: Results from an international survey. Professor Mark Dodgson and Dr Peter Innes of the University of Queensland Business School examined how well Australian manufacturers are employing innovation as a decisive competitive business strategy, compared to their European counterparts.

The Reality of Innovation Unzipped: An investigation in middle market Australia. Deloitte and the Australian Business Foundation investigated the triggers and approaches to innovation by middle-market firms in Australia. There were some key insights about the importance of customer-driven innovation in transforming business models as opposed to the introduction of new technologies, products or services.

Born to be Global: A closer look at the international venturing of Australian born global firms. Professor Peter Leisch, Dr Stuart Middleton and Dr Jay Weerawardena of the University of Queensland Business School and the Australian Business Foundation’s Dr Matthew Steen analysed the international expansion experiences of born global firms from Australia and formed an assessment of how this international venturing can benefit the Australian economy as a whole.

The Foundation has a further three research projects under way:

An analysis of the contributors to >Australia’s productivity growth over the last decade, by Professor Alan Hughes of the Centre for Business Research at the University of Cambridge, UK.

An investigation of the business >models that are proving effective for Australian companies operating in Chinese markets, co-ordinated by Dr Keith Suter.

An edited collection of expert papers >on the “Innovation Ecosystem”, with insights into the various ways that people both individually and collectively transform businesses and increase their know-how and their innovation capabilities.

The Australian Business Foundation continues to actively disseminate its research intelligence through a program of events and briefings; through submissions to government enquiries such as the Productivity Commission’s study into Public Support for Science and Innovation; and through media commentary and responses to requests for advice and representation from groups as diverse as the South Australian Defence Industry, university research directors across Australia and New Zealand, and the IBM Business Leadership Forum in St Petersburg, Russia.

Through its ongoing support of the Australian Business Foundation this year, the NSW Business Chamber has again demonstrated its practical commitment to forward-looking leadership for Australia’s business community.

ABN 63 000 014 504

> 18

Regional Operations

Murray/RiverinaManufacturing has maintained its strength in the Murray/Riverina area, with NSW Business Chamber serving as a strong ally in the ongoing process of embracing change.

With NSW Business Chamber engaging resellers in both Griffith and Wagga to promote its leading-edge business support products, there was a particular focus this year on networking nights involving local chambers of commerce to spread awareness of the products available.

Seminars on OH&S and WorkChoices, which where very well attended, have supported businesses in meeting the demands of compliance.

Australian Business International Trade Services continues to have a strong association with the Riverina and has been successful in helping local business gain access to markets around the world.

Particularly strong has been the association with the wine industry, with nearly all wineries in the region now members and benefiting from services.

The skill shortages continues to be a major issue for the region and the announcement of a trade school for Griffith was welcomed as a step towards providing a long-term solution.

The effects of the drought in the past 12 months have also presented significant challenges for the region. Many businesses have had to deal with downturns and some have had to make changes in order to stay viable. NSW Business Chamber has increased its focus on the water issues affecting the area and has been invited to sit on the NSW Ministerial Advisory Council, along with other major groups with a vested interest in water throughout NSW.

The NSW Business Chamber’s Riverina office also engaged with local Business Enterprise Centres and government bodies to run events for Small Business Month in September 2006.

Northern RiversHealthy membership numbers in the Northern Rivers region testify to its continuing efforts to champion the growth and sustainability of business in the area.

Events have taken centre stage over the last year, with monthly Business Connection gatherings and the introduction of 15@6 (15 people at 6 o’clock) each month for networking and skills development. OH&S Consultation courses have also evolved.

The Lord Howe Island Trade Fair and the September Small Business month Business to Business Expo gave members a chance to expand their customer base, have fun and increase their business experience.

During 2006/2007, the Northern Rivers office supported the community at large by sponsoring the Business Excellence Awards in Tweed Heads and Casino; the Cancer Council Relay for Life; the Westpac Rescue Helicopter; the Ballina Rivafest; the Red Cross – which received a cheque for $5,000 raised at the annual golf day; the Lions Club Fun Run and the local “Players” Theatre.

With the area welcoming the second-highest levels of international tourists in NSW, the Chamber will continue to lobby for the urgently needed Pacific Highway upgrade and core services to the region.

There is a strong skill base in creative and knowledge-based sectors in the region, and well-developed education facilities that include nearly 30 cultural educational institutions with specialist training in the arts, crafts, theatre and film. Job-creation rates are high.

However, the skills shortage is an ongoing barrier to business growth in the key sectors of tourism, education, media and creative industries, horticulture, residential development, forestry, meat and dairy, aquaculture and ageing.

Businesses in the region are responding to the effects of population shifts, global competition and industry restructuring by focusing on innovation, diversification and value-adding to increase their competitiveness and export capacity.

Mid North Coast/New England/Central WestNSW Business Chamber members in these areas have gained great value this year through regular contact from regional staff. They have embraced the new member directory and are using it to advertise their businesses.

Twenty WorkChoices seminars were well attended across the region. Members also benefited from a number of OH&S seminars as well as Business Vitality forums. Safety Assist workshops informed members about developments in OH&S legislation, and the Best Practice Post Incident Management Workshops provided valuable guidance on what to do after an accident or incident at the workplace.

Another series of workshops covered Safety Compliance. Some members had partial systems in place that required finetuning to be fully compliant. Feedback from members on this type of workshop was very positive.

During September 2006, the Mid North Coast/New England operations participated in several Small Business Month activities, including a launch breakfast, which nearly 100 local businesses attended; a Human Resources Week Great Debate on the subject, “It is more fun to work in a large business than a small one”; and a Business Expo showcasing more than 50 businesses to other local providers. A Networking@Night event attracted close to 100 participants.

Regional Operations



> 19The Port Macquarie operation was accredited into the Port Macquarie Hastings Council Customer Care Program, which recognises superior customer service and accredits businesses with recognised programs in place. The office also took part in the Coffs Harbour Manufactures and Innovations Forum, an opportunity for manufacturers to meet and discuss ideas with their peers.

Although the drought and the decline of the building industry in the region have had a large impact, members have been largely able to adjust. Many businesses have used innovation to continue to flourish. Those in farming, dairy and forestry, for example, have adapted to the times by developing highly specialised products and services.

The skills shortage, however, is having an increasing effect, and the NSW Business Chamber is working with Australian Business limited Apprenticeships Centre to encourage members to take on trainees and apprentices to help alleviate the problem for the future.

Case studyBurke’s Transport When the managing director of Burke’s Transport, Graeme Burke, realised that one of his customers was moving more towards the bulk transfer of liquids, he acted fast. Burke got in touch with the creator of an unsuccessful test model of specialised trailer that enabled one trailer to carry both liquid and general freight loads. The result was the camel tanker.

These innovative trailers are now part of the fleet of 34 prime movers and 73 trailers Burke’s Transport runs between Bathurst, Orange, Lithgow, Sydney and Melbourne.

“We look at what our customers are going to do, and how they will want to do it,” says Burke. “We try to come up with a solution that benefits both them and us. Then when they’re ready to change, we are too.”

The company has also been proactive when it comes to containing fuel costs. After a bit of trial and error, for the past three years it has been using a blend of bio-diesel for its fleet. And there are environmental benefits – bio-diesel recycles by-products such as fats and vegetable oils, and it also burns cleaner.

“A blend of 40 per cent bio-diesel to 60 per cent normal diesel means a significant cost saving,” says Burke. “Now that we’ve learnt how to manage and blend it properly, it works very successfully.”

As a member of NSW Business Chamber, Burkes Transport can obtain up-to-date information to enable it to stay compliant in the areas that are affecting all businesses, particularly those in the transport industry.

The company uses the Workplace Advice line for advice on a variety of industrial relations matters, and NSW Business Chamber allows it to stay abreast of workplace regulatory obligations through the services it provides.

ABN 63 000 014 504

> 20 Central Coast With a population of 300,000 – now equal to that of the ACT – the Central Coast is home to a diverse mix of established international businesses and service providers.

NSW Business Chamber’s Central Coast operations continued to serve its vibrant and growing business community during 2006/2007. It now represents more than 11,000 businesses in the area, with the media, government and community recognising it as the leading regional body for business-related comment and assistance.

Recognition of the region was furthered with an undertaking by Prime Minister John Howard to raise the matter of statistical inclusion of the Central Coast with the Australian Bureau of Statistics (ABS).

This year the Central Coast office has actively worked with business and government on labour shortages, workplace relations, infrastructure and manufacturing.

Led by president Marian Mickelson, the Regional Advisory Council concentrated on two key initiatives. Business in the region asked the office to address the issues of urban planning and infrastructure, and skills shortage. The results have been good so far, with local, state and federal governments becoming involved.

With a study showing that poor traffic flow costs businesses up to $7 million each year, transport has been a particular focus. NSW Business Chamber Central Coast office has initiated an Urban Planning and Infrastructure cluster consisting of representatives of State Government, the RTA and other experts on the region to address the issue.

The region welcomed the signing of $16 million towards the establishment of the Australian Technical College, a move that will go some way towards addressing the problem of skills shortage.

The storms in the region during June 2007 had a severe effect on the community. NSW Business Chamber Central Coast took immediate action, with CEO Kevin MacDonald approving a NSW Business Chamber business hotline to respond to affected businesses in the region. The number was publicised daily in the media and the initiative was a huge success, with the business community impressed by the organisation’s proactive approach.

A highly successful series of CEO breakfasts and a senior excutive womens forum provided an opportunity for business leaders to learn from expert guest speakers and discuss issues that affect them both nationally and globally.

Sydney NorthThe Sydney North region includes the area from Sydney Harbour to the lower reaches of the Hawkesbury River, and stretches from the coast to north-west Sydney. Business activities in the region vary from North Sydney’s business services heartland to industrial parks that house multinational manufacturers and ICT giants such as Microsoft. Small to medium enterprises make up more than 75 per cent of businesses in the region, with 30 per cent in services industries and nine per cent in manufacturing.

The NSW Business Chamber has strengthened its position in the region as the leading business membership group, with a membership base of 467 members and 1,563 associate members.

In 2006/2007, there was a renewed focus on maintaining contact with members through effective account management, as well as regular visits, events and public profiling. The merger with Sydney Chamber of Commerce in 2006 has brought the advantage of working with local chambers of commerce, which are very well organised and professional, on networking and jointly promoted events.

During the year the Chamber held a number of events, reflecting members’ varied needs and interests. The Networking @Night events at Mosman and Ryde continue to attract good business interest and sponsorships. Other highlights included Australian Business Lawyers legal updates and the HR Roundtable for HR professionals.

As with other regions, Sydney North took a proactive approach to educating members about the WorkChoices legislation, through the National Adviser Network Program of seminars and consultations.

The North Sydney office of NSW Business Chamber provided support for members and clients with export documentation; TradeStart for first time exporters; apprenticeships and traineeships placements; and OH&S training and safety training.

In the face of the region’s continued growth, a lack of infrastructure and the need to plan for future infrastructure requirements remains a concern for Sydney North’s members. In 2007, the Sydney North Regional Advisory Council formed the Business Leaders Forum to encourage discussion and action, as well as lobbying to government, on this issue. Members of NSW Business Chamber and local Chambers of Commerce were invited to be part of this forum.

Sydney South The Sydney South region of NSW Business Chamber stretches from the CBD to the Eastern suburbs and the west as far as Strathfield, and south to the Sutherland Shire. The larger industries of the region include textile, clothing, footwear and leather; manufacturing; property and business services; and finance and insurance. More than 28 per cent of Sydney South Chamber members are in manufacturing, with the textile, clothing, footwear and leather (TCF&L) industry dominating.



> 21NSW Business Chamber in Sydney South has 746 members and 1,920 associates. The Sydney South Regional Advisory Council, comprising members of NSW Business Chamber, supported members during 2006/2007 by continuing to develop the ABL Textile Clothing & Footwear Awards with the University of Technology Sydney’s faculty of design, architecture and building, to assist young Australians who want to start their own fashion design business. It also continued its involvement in the NSW Business Chamber Safety In Business Awards. Entrants were judged on their safety improvements and innovations, with the Awards ceremony being held on 4 September, 2006, during Small Business September. The Council also continued its work on the Sydney South skills initiative to assist young people to take up traditional trade occupations.

The Council’s key focus this year has been on the worsening skills shortage in the region. It has been connecting schools, career advisors and parents with local businesses to help students identify possible careers in the Sydney South region.

During the year, members also benefited from regular updates on topical issues held at regional centres in Mascot, the CBD, Arncliffe, Cockle Bay and Kingsford. These included several Australian Business Lawyers events, covering such things as Unfair Dismissals, Managing Ill and Injured Workers, Superannuation Choice of Fund, and Privacy and Spam Laws. OH&S Seminars covered risk management and workers’ compensation. Helping businesses, particularly small to medium-sized enterprises, to understand WorkChoices was another priority.

Member companies developing their export business took advantage of NSW Business Chamber’s Getting into Export seminars, and the regional office at Mascot provided support for members and clients with export documentation; the Regional Industry Careers Adviser program; the TradeStart program for first time exporters; and OH&S training and support services.

Greater Western SydneyWestern Sydney is in the middle of a road and rail transport hub, still has competitively priced land, and boasts a well-educated and culturally diverse population.

Manufacturing accounts for more of the region’s economy than any other sector, with 13,000 individual businesses generating more than $30 billion annually in sales and service income. More than a third of NSW’s manufacturing workforce is in Greater Western Sydney.

The area’s property development, business services, and finance and insurance industries are also significant. Information and communication technology, biotechnology, business services and retail trade are growing at much faster rates than the national average.

NSW Business Chamber membership in Western Sydney comprises 723 members and 1,781 associates. During 2006/2007, members attended 36 events at Parramatta, Penrith, Baulkham Hills, the Norwest Business Park, Sydney Olympic Park, Wetherill Park and Bass Hill.

Members and clients were regularly updated on issues through the Employment Law Series Seminars on Recruitment; Unfair Dismissal; Ill and Injured Workers; Terms of Trade – How to Protect Your Business; Superannuation Choice of Fund; and Privacy and Spam Laws.

The Western Sydney service centre at North Parramatta provided support with export documentation, TradeStart for first-time exporters, apprenticeships and traineeships placements, and OH&S training and support services.

The Western Sydney Regional operations supported members during 2006/2007 by developing Schools Bizlink, a Western Sydney skills initiative that will assist and encourage young people to take up traditional trade occupations. The Council also actively supported the regular roundtable HR Forums held in North Parramatta on topics such as Managing Workers’ Compensation, Secure employment Test Case, Performance Management, Employee Incentives and Remuneration, and Coaching and Mentoring.

Through the NSW Business Chamber/Hills Chamber of Commerce alliance, and supported by TAFE, several successful Networking@Night events were held at Baulkham Hills, Castle Hill, Wetherill Park, Norwest Business Park and Werrington, enabling members to make business contacts in a social setting.

For member companies developing their export business, NSW Business Chamber staged Getting into Export Seminars in conjunction with Fairfield and Parramatta Councils. It also supported Penrith Chamber of Commerce and the Penrith Valley Economic Development Corporation in staging high-profile business events in the region.

ABN 63 000 014 504

> 22 Capital On 27 June 2007, the final approval was received to merge the operations of the NSW Business Chamber with the Canberra Business Council. The new group is now the largest and most influential business body in the ACT region, representing in excess of 600 members.

Its membership base takes in Goulburn, Bega, Young and Cowra, and covers such diverse businesses as agriculture, information communications and technology (IC&T), fabrication, light manufacturing, wine, communications, education and defence industries.

The region faced a number of challenges in the wake of the 2006 ACT Budget, which announced a $17 million reduction in government purchases; the axing of all existing business grants programs, as well as the Business Partnership Board and Business ACT; and no reforms to the Workers’ Compensation scheme for another three years.

The ACT Mid Term Report, delivered in October at the ACT Assembly, identified business-specific responses to the 2006/2007 ACT Budget.

Recommendations included reviewing previous business development programs to guide the allocation of $2 million earmarked for business support in the Budget, as well as ensuring that the timetable for the review of Workers’ Compensation is met, and that the OH&S review leads to practical legislation.

The 2007 Federal Budget Breakfast, held in conjunction with the National Institute of Accountants, CPA Australia and the Institute of Chartered Accountants at Parliament House, Canberra, attracted more than 400 attendees.

The region benefited from a number of business seminars and workshops, including the 2006 Safety Assistance Program, with WorkCover NSW; the 2007 National Adviser Network Program, in conjunction with DWER, dealing with unfair dismissals and unlawful terminations under WorkChoices; and the 2007 Workers’ Compensation and Return-to-Work updates, held in Queanbeyan.

Five of our regional members – CEA Technologies, Clonakilla Wines, Innovation Dynamics, Aspen Medical and PRD Software – received 2006 ACT Chief Minister’s Export Awards.

The 2007 Batemans Bay Women in Business AGM attracted more than 140 people. Women in Business will be formalising an Alliance agreement with NSW Business Chamber.

NSW Business Chamber continued to support its Alliance Partnerships, with the Business Development Manager attending Queanbeyan Business Enterprise Centre functions; liaising with Queanbeyan Business Council; attending ACT Exporters Network seminars and workshops from AusIndstry; working closely with AusTrade and Tradestart; consulting with Canberra Business Council on their Task Forces programs; and regularly engaging with Regional Chambers of Commerce in Cooma, Batemans Bay and Young.

Hunter Business Chamber In June 2007, the Hunter region suffered an estimated $1 billion worth of damage during severe storms. The Hunter Business Chamber (HBC) offered an immediate package of advice and assistance for members and other businesses in the wake of the devastation. Twenty-eight per cent of members took more than a week to repair their premises before they were able to trade again, and HBC supplied daily data to help establish some of the government support provided.

HBC focused much of its efforts in the past year on ways business can respond to the challenges of climate change. There was strong support for discussions with both State and Federal governments about a HBC proposal to establish a centre of excellence in sustainable energy. HBC believes that as a major power-generator and coal provider, and an area with an outstanding track record in medical and social research, the region is well placed to host such a centre. Proposals are being developed for a formal submission.

In an effort to address ongoing skills shortages, during the past year HBC encouraged parents and young people to seek training and education. It worked with TAFE and the University of Newcastle to promote courses that will help address skill shortages and advance careers in business.

HBC was also involved in discussions with several local government councils about proposed rate increases. Newcastle and Lake Macquarie councils had both sought increases well beyond the three and a half per cent set by the State. HBC was able to bring some further accountability into the budgeting processes in both cases.

To achieve some action on the issue of public transport, HBC brought together all stakeholders for the first time. It will ask the NSW Government to consider a proposal for the creation of a Lower Hunter Transport Strategy and a regional transport authority.

State Government announcements of a $3.6 billion trains project and a $350 million dam for the region were welcome news.



> 23Illawarra Business ChamberDuring 2006/2007, Illawarra Business Chamber’s (IBC) strong membership growth of 14 per cent reflected the region’s vibrant economy and positive economic outlook.

IBC’s main focus during the year was on maximising membership benefits and engagement. In May it hosted the inaugural Business Expo – Illawarra on Show, with 60 booth exhibitors and more than 1,000 people attending. The Business after Hours function held as part of the Expo was a huge success.

Another highlight of the past 12 months was again the Integral Energy Business Awards, held in November 2006. More than 980 people attended, including the NSW Premier, Morris Iemma, and the then Leader of the Opposition, Peter Debnam.

These awards are now the largest in regional Australia.

IBC’s Business after Hours events continued to grow, averaging 280 attendees each month.

IBC also hosted a number of well-attended Executive Lunches, including a Federal Budget luncheon, and a State Election luncheon at which members were able to hear first-hand the policies of the two major parties. John Della Bosca, the then Minister for Industrial Relations, also spoke at a lunch about reforms to workers’ compensation and OH&S.

The IBC made submissions to a range of reviews, including the new Wollongong Local Environment Plan, the Illawarra Regional Strategy and the Wollongong City Centre Revitalisation Strategy.

IBC continued to lobby for the upgrade of the region’s infrastructure, including the Princes Highway, and made a major submission to Auslink advocating the need to include Picton Road to link the Illawarra with Western Sydney via the M7.

Illawarra Business Chambers’ Apprenticeship Project also continued to operate as a model for local collaboration, having placed 300 young people into apprenticeships over the past three years. The project’s success was recognised by the Federal Government, with the Federal Minister for Vocational and Further Education, Andrew Robb, agreeing to fund it for another three years. The Federal Government also agreed to fund NSW Business Chamber to run a similar project in Western Sydney for a three year period.

Case studyEdmen Group Managing director Eddy De Gabriele began Edmen Group as a blue-collar labour hire company but has now expanded it into providing disability and aged care support services.

“I realised that remaining a sole industry service provider would place the company at high risk,” says De Gabriele. Today, labour services for the disability and aged care industries comprises almost 50 per cent of his business.

The company offers a personalised service that gives clients consistency, their families peace of mind, and staff a safe working environment. Each client has a personal operations manual that outlines their needs and behaviours, from medication requirements to personal dislikes such as particular colours or sounds.

“We have won a lot of long-term contracts because of our approach,” says De Gabriele. “The processes also help our staff avoid dangerous situations. Unfortunately, a few people with disabilities can behave violently. But by understanding the triggers for this behaviour before they walk in the door, our staff can avoid them.”

Its approach has given Edmen Group access to hundreds of skilled professionals who otherwise would not be in the workforce, and it has a loyal database of more 4,000 casual staff.

“Casual is a mode of payment, not an attitude,” says the managing director. “It has nothing to do with a person’s professionalism, their appearance, their commitment to the job. People choose casual work because it suits their lifestyle.”

Edmen is an active member of the Illawarra Business Chamber and uses several of its services, including the Workplace Advice line. It has engaged Australian Business Lawyers and used products such as HR Advance to ensure their compliance with WorkChoices.

It has also taken advantage of the range of opportunities offered to members to raise their business’s profile, from exhibiting at the recent Business Expo to advertising in IBC’s annual report. Edmen also hosted IBC’s monthly networking event Business After Hours and more than 300 people attended.

ABN 63 000 014 504

> 24

Honorary Life GovernorsMr Hugh A MayDate elected: December 1987

Mr Brian E SmithDate elected: November 1999

Mr Warren D Adcock OBEDate elected: February 1986

Mr Patrick Donovan AM RFD EDDate elected: October 1992

Mr Terry Hunt Date elected: November 1999

Mr John T CameronDate elected: November 1999

Mr Neville Sawyer AMDate elected: November 2005

Chris BaylissTom BowersPaul BrennanEllie BrownLeigh BryantGrant BurtenshawTrevor CairneyJanine CullenStephen DavidsonMaris DerumsFraser DuffJohn Fahey

Judith FieldRobbi GillardRoger HoodKaren HowardGrahame HutchinsonStephen JoyceDavid MallochBrian MansellJohn MasonDavid MichaelisMarion MikkelsenMegan Motto

Garry PearceIan Penfold Peter ReadTina ReynoldsTony ShawBrent SincockTerence (Terry) WetherallGreg WhiteleyKaren WilsonBradley WilsonKevin Wright

NSW Business Chamber Councillors

NSW Business Chamber Limited and controlled entitiesConsolidated Financial Statements 30 June 2007


> 25

This financial report covers both NSW Business Chamber Limited as an individual entity and the consolidated entity consisting of NSW Business Chamber Limited and its subsidiaries. The financial report is presented in Australian currency.

NSW Business Chamber Limited is a company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:

NSW Business Chamber Limited 140 Arthur Street North Sydney NSW 2060

A description of the nature of the consolidated entity’s operations and its principal activities is included in the review of operations and activities on page 26 in the directors’ report which are not part of this financial report.

The financial report was authorised for issue by the directors on 30 August 2007. The company has the power to amend and reissue the financial report.

All press releases, financial reports and other information are available at our website: www.nswbc.com.au

Directors’ Report 26–29

Corporate Governance Statement 30–32

Auditor’s Independence Declaration 33

Financial report

> Income Statements 34

> Balance Sheets 35

> Statement of Changes in Equity 36

> Cash Flow Statements 37

> Notes to the Consolidated Financial Statements 38–64

> Directors’ Declaration 65

> Independent Audit Report to Members 66–67

ABN 63 000 014 504

Contents


ABN 63 000 014 504

> 26


Directors’ reportYour directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of NSW Business Chamber Limited and the entities it controlled at the end of or during the year ended 30 June 2007.

DirectorsThe following persons held office as directors of NSW Business Chamber Limited during the whole of the financial year and up to the date of this report:

C Bayliss I B PenfoldG D Hutchinson I A Pollard D Michaelis R L HoodD Gilbert K L WilsonM J Capps T Cairney

J Bingham was a director from the beginning of the financial year until his resignation on 1 August 2006.

D J Malloch was a director from the beginning of the financial year until his resignation on 2 August 2006.

Company SecretaryThe following person held the position of company secretary at the end of the financial year; Mr Aivars Berzins – B.Com, CA, Grad.Dip.AppCorpGov, MAICD. Mr Berzins has been employed by NSW Business Chamber Limited for the past 14 years performing financial and treasury roles and was appointed Company Secretary on 10 January 2007.

Principal activitiesNSW Business Chamber Limited is a public company limited by guarantee. The company has no issued capital and the liability of the members is limited to a total of $10 per member. The Constitution does not permit the return of capital or the distribution of surplus by way of dividend.

The continuing activities of the consolidated entity during the course of the year were principally to promote Australian industry via the provision of business services, support and advocacy. Its major funding activity to support the principal activities involves the management of a portfolio of investments.

Review of operationsThe consolidated operating profit from ordinary activities including movement in market value of investments was $42,580,000 compared with an operating profit of $50,423,000 in the previous year. Net movement in market value of investments contributed $23,481,000 of the profit ($21,064,000 profit last year).

Significant changes in the state of affairsIn the opinion of the directors there were no significant changes in the state of affairs of the consolidated entity that occurred during the financial year under review which have not otherwise been disclosed in this report or the consolidated accounts.

Matters subsequent to the end of the financial yearNo matter or circumstance or event of a material and unusual nature has arisen since the end of the financial year and up until the date of this report which is likely to significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity, in future financial years.

Likely developments and expected results of operationsLikely developments in the operations of the consolidated entity and the expected results of those operations in subsequent financial years have not been included in this report because in the opinion of the directors, it would prejudice the interests of the consolidated entity.

Environmental regulationThe consolidated entity is not subject to significant environmental regulation.

Directors’ meetings and committees of DirectorsThe number of directors’ meetings and meetings of committees of directors held in the period each director held office during the financial year and the number of meetings attended by each director are shown in the table below: -

Board Meetings Investment Audit & Compliance HR & Succession Council

Directors Possible Attended Possible Attended Possible Attended Possible Attended Possible Attended

Wilson K L (President) 6 6 7 6 * * 2 2 4 4

Penfold I B (Deputy President) 6 6 7 4 * * 2 1 4 4

Bayliss C 6 6 * * 3 1 2 2 4 4

Cairney, T 6 6 * * 2 2 * * 4 4

Capps, M J 6 6 * * * * 2 2 4 3

Gilbert, D 6 5 * * * * 1 1 4 2

Hood R L 6 5 * * * * 2 2 4 4

Hutchinson G D 6 4 7 4 * * * * 4 3

Michaelis, D 6 5 7 6 3 3 * * 4 2

Pollard I A 6 6 7 7 3 3 * * * *

* Not a member of the relevant committee The President is an ex officio member of all Committees. The CEO is an ex officio member of all Committees except the Audit & Compliance Committee.



> 27

Karen L Wilson BA DipEd, FAICDAge 61

President, NSW Business Chamber LimitedDirector, ING Australia LimitedDirector, Ross Human Directions LimitedDirector, Sydney Chamber of CommerceDirector, Vision Group Holdings Former Managing Director, Estee Lauder Pty LimitedPast President, Chief Executive WomenPast President, Cosmetics, Toiletries & Fragrance Association of Australia

Christopher BaylissAge 56

Director, Sydney Chamber of CommerceCouncillor since 1999Director, Institute of Trade Skills and ExcellenceCouncillor, Science Foundation Sydney UniversityWestern Sydney Councillor since 1997Western Sydney Regional President 2001-2003Managing Director, Brevini Australia Pty LtdChairman, Panbridge Pty LtdFormer Managing Director, Erico Industries Pty LimitedFormer General Manager, Pacific Waste

Special responsibilities – Member, Audit & Compliance CommitteeMember, Human Resources & Succession Committee

Trevor H Cairney BA, M. Litt, PhDAge 55

Director, Greater West Development Fund Limited (since 2005)Chairman, Sydney Chamber of Commerce (since 2001), Director since 1997Director, Southland College (since 2005)Chairman, CADRE Pty Ltd (1997-2002)Director Westec Pty Ltd (1997-2000)Director, Centre for Advanced Computing and Communication (2000-2002)Director, Australian Business Foundation

Special responsibilities –Member, Audit & Compliance Committee

Mary Jo Capps MusBac, MAAge 52

Director, Sydney Chamber of CommerceDirector, Victorian College of the ArtsPast Deputy Chair, Australia Music CentreGeneral Manager, Musica Viva Australia

Special responsibilities –Member, Human Resources & Succession Committee

David GilbertAge 46

Chief Executive Officer, NSW Cricket AssociationFormer Chief Executive Officer, Sussex County Cricket Club (UK)Director, Bradman FoundationDirector, Sydney Chamber of Commerce

Special responsibilities –Member, Human Resources and Succession Committee

Roger L HoodAge 63

Principal, Organisation ChangeWorksCouncillor since 2002President, Australian Business Industrial since 2001Director, Sydney Chamber of CommerceFormer Personnel Director, Unifoods Pty LtdFormer HR Director, Lever Rexona Division, Unilever Australia Limited

Special responsibilities –Chairman, Workplace Relations CommitteeMember, Human Resources and Succession Committee

Grahame Hutchinson B Tech, FAICDAge 65

Councillor since 1991Director, Vulcanite Pty LimitedDeputy President NSW Business Chamber Limited 2002 – 2005

Special responsibilities –Chairman, International Trade CommitteeMember, Investment Committee

David Michaelis FAICD, FCISAge 63

Deputy President 2001 - 2002Vice President 1990 - 2001President from 2003 – 2005Solicitor of the Supreme Court of England and Wales, & NSWCouncillor since 1988Chairman, ASSET LimitedDirector, John Young (Kelvinaugh) Pty LimitedDirector Australian Chamber of Commerce and IndustryDirector, Sydney Chamber of CommerceDirector, Australian Business Limited Apprenticeships Centre Pty LimitedCommittee Member, Australian Council of Superannuation Investors (ACSI)

Special responsibilities –Chairman, Audit & Compliance CommitteeMember, Investment Committee

Profiles of each director of the Company and details of other interests are as follows:-

The President is an ex officio member of all Committees. The CEO is an ex officio member of all Committees except the Audit & Compliance Committee.

ABN 63 000 014 504

> 28 Ian B Penfold ITESSA, FAICDAge 53

Councillor since 1997Former Managing Director Charles Parsons & Co Pty LimitedFormer Managing Director, Cork International Pty LimitedFormer Chairman & Managing Director, Speedo Australia Pty LimitedFormer President, Pentland Australia Pty LimitedFormer Chairman & Managing Director, Mitre Sports LimitedDeputy President NSW Business Chamber Limited since 2005 Director, Sydney Chamber of Commerce

Special responsibilities –Chairman, Human Resources & Succession Committee Member, Investment Committee

Ian A Pollard BA (Macq), MA (Oxon), DPhil (IMC), FIA, FIAA, DALFAge 54

Chairman, Corporate Express Australia LimitedDirector, Milton Corporation LimitedChairman, RGA Reinsurance Australia (Group)Director, InTech Pty LimitedChairman, Just Group LimitedDirector, Sydney Chamber of CommerceMember, Advisory Council JP Morgan Australia

Special responsibilities –Chairman, Investment CommitteeMember, Audit & Compliance Committee

Insurance of OfficersDuring the financial year, NSW Business Chamber Limited (the company) paid a premium under a contract to insure directors, councillors and executive officers of the company and related bodies corporate. Disclosure of the premium payable under and a summary of the nature of liability covered by the insurance contract are prohibited by a confidentiality clause in the contract.

The liabilities insured are the legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of entities in the Group and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the company. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.

Proceedings on behalf of the companyNo person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of the Corporations Act 2001.

Non-audit servicesThe company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the company and/or Group are important.

Details of the amounts paid or payable to the auditor (PricewaterhouseCoopers) for audit and non-audit services provided during the year are set out below.

The board of directors has considered the position and, in accordance with the advice received from the audit committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

> All non-audit services have been reviewed by the audit committee to ensure they do not impact the impartiality and objectivity of the auditor

> None of the services undermine the general principles relating to auditor independence as set out in Professional Statement F1, including reviewing or auditing the auditor’s own work, acting in a management or a decision-making capacity for the company, acting as advocate for the company or jointly sharing economic risk and rewards.


> 29During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non-related audit firms:

CONSOLIDATED 2007 2006 $000 $000

Assurance Services 1. Audit services

PricewaterhouseCoopers Australian firm: Audit and review of financial reports and other audit work under the Corporations Act 2001 150 130

Total remuneration for audit services 150 130

2. Other assurance services PricewaterhouseCoopers Australian firm

Audit of regulatory returns 2 2Due diligence services - 56AIFRS accounting services 29 9Audit of transition of investment custodian 20 -Other accounting services 15 -

Total remuneration for other assurance services 66 67

Total remuneration for assurance services 216 197

Taxation Services PricewaterhouseCoopers Australian firm: Taxation compliance services including review

of income tax returns for entities in the group 9 10 Income tax status review 3 15

Total remuneration for taxation services 12 25

Rounding of amountsThe company is of the kind referred to in Class Order 98/0100 issued by the Australian Securities and Investment Commission, relating to the “rounding off’ of amounts in the directors’ report and the financial report. Amounts in the directors’ report and financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

Auditor’s independence declarationA copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 33.

AuditorPricewaterhouseCoopers continues in office in accordance with Section 327 of the Corporations Act 2001.

Signed at Sydney in accordance with a resolution of directors.

30 August 2007

K Wilson I PenfoldPresident Deputy President


ABN 63 000 014 504

> 30


NSWBC corporate governance statementThis statement outlines the main Corporate Governance practices in place throughout the financial year (unless otherwise stated). These practices are dealt with under the following major headings: Board of Directors and its Committees, Risk Management and Internal Control Framework, Ethical Standards and Environment

Board of directors and its committeesRole of the BoardThe Board of Directors acknowledges its primary role is the protection of total members’ equity and the creation of long term membership value. To fulfil this role, the Board has overall responsibility for the Corporate Governance of the Company including strategic direction, the establishment of objectives for management and monitoring the achievement of those objectives, the review of Chief Executive Officer and senior management performance, establishing a framework for the management of major business risk and ensuring that policies and procedures are in place to satisfy the Company’s legal and ethical responsibilities.

Board ProcessesThe powers of the Board of Directors are determined by the Company’s Constitution and the Corporations Act 2001.

The Directors meet as a Board on a regular basis throughout the year, and in 2006/07 met on six occasions. The Directors also participated in additional Corporate Governance and Strategy meetings. The table contained in the Directors’ Report at page 26 sets out the number of meetings of the Board and its Committees during the year and the attendance of Directors at those meetings.

An Audit & Compliance Committee, an Investment Committee and a Human Resources & Succession Committee are in place. These Committees operate under the charters approved by the Board. The Board has also established a special purpose Governance & Nomination Committee which meets as required. This Committee met once during the year and is comprised of K L Wilson, I B Penfold, T H Cairney and M J Capps.

The Chief Executive Officer, in consultation with the President, prepares the agenda for each Board meeting and papers are circulated in advance of each meeting.

The Board undertakes a review of its own performance and processes on a regular basis. Periodically, Non-Executive Directors provide feedback to the President.

Composition of the BoardIn accordance with the Constitution, which was amended on the merger with the Sydney Chamber of Commerce (formally known as State Chamber of Commerce (NSW)), the Board of Directors shall consist of not less than eight and not more than thirteen persons. However, the three additional Directors appointed upon the merger have to vacate office on 16 February 2008 if they are not a member of Council on that date.

Currently there are ten Directors on the Board all of whom, including the President are Independent Non-Executive Directors.

Details of the Directors are set out on pages 27 to 28 of this Annual Report.

The composition of the Board is reviewed on a regular basis and at least every two years, to ensure that it contains the appropriate mix of experience and expertise. When it is considered that the Board would benefit from the services of a new director with particular skills, the Board determines the selection criteria. Potential candidates are identified. The Board then proposes to the NSW Business Chamber Council the most suitable candidate to join the Board. Under the Company’s Constitution, that appointee must stand for election at the next Annual General Meeting of members.

Regard is had to the following matters when considering the composition of the Board:

> the Board should contain an appropriate blend of skills, attributes and experience having regard to its needs at any given time

> the President of the Board should be an independent Non-Executive Director who has served on the Company’s Council

> the Board should comprise a majority of independent Non-Executive Directors

> the Company’s Constitution prescribes that all Board members shall retire biennially

> the NSW Business Chamber Council elects the President, Deputy President and five Board Members

> Board Members may elect the CEO as a director, who does not have to retire biennially and up to two other Directors nominated by the President and approved by the Council.

Board CommitteesDetails, including function and membership of the Board Committees are set out below. Particulars of meetings held and attendances are shown in the Directors’ Report at page 26.

Audit & Compliance CommitteeThe Committee is responsible for monitoring the management of operational, financial and business risks in the Group. It ensures the reliability of management and financial reports and compliance with the relevant legislation and regulations. It is also responsible for reviewing the efficiency and effectiveness of the external audit and internal controls.

All members of the Committee are independent Non-Executive Directors. Management, including the Chief Executive Officer and the Chief Financial Officer, and the relevant PricewaterhouseCoopers (PwC) partner, attend by invitation.

The responsibilities of the Committee include:

> ensuring the quality and accuracy of the financial report and other externally-distributed financial information;



> 31> reviewing significant accounting issues and judgments;

> ensuring the maintenance of an appropriate internal control framework and where any deficiencies are identified, ensuring prompt remedial action is taken by management;

> reviewing accounting policies to ensure compliance with all relevant Australian Accounting Standards, generally accepted accounting principles and in future Australian equivalents to International Financial Reporting Standards;

> reviewing the annual external audit work plans;

> reviewing the performance of the external auditor and recommending appointment as appropriate;

> considering whether the non-audit services provided by the external audit firm are consistent with maintaining the external auditor’s independence;

> ensuring any matters outstanding with the external auditor or regulatory authorities are appropriately addressed;

> reviewing its performance as an Audit Committee;

> reviewing the occupational health and safety procedures of the group; and

> reviewing the risk management procedures of the Group.

The Board has adopted a policy addressing the issue of audit independence and the undertaking of non-audit consultancy work by the Company’s external auditors, PwC, to ensure that at all times the external audit firm is independent of the Company and its management and directors. The policy identifies services which are considered to be in conflict with the role of the external auditor and as such should not be provided by the external audit firm. The external auditor is required to make an annual declaration of independence to the Board and submit a written statement to the Committee outlining the relationships with the Company.

External audit partners are now required to rotate after a maximum of five years.

The Audit Committee met three times during 2006/07. It is currently comprised of four independent Directors namely, D Michaelis (Chairman), C Bayliss, T Cairney and I Pollard.

The external auditor meets separately on a yearly basis with the Committee, without management present, to ensure full and frank discussion of audit issues. The external auditor is requested to attend the annual general meeting and be available to answer member questions about the conduct of the audit and the preparation and content of the audit report.

The Committee Chairman reports to the Board subsequent to each Committee meeting.

Investment CommitteeThe Committee was established by the Board and is responsible for complying with the Investment Committee Charter.

The Committee is responsible for the management of the Company’s substantial investment portfolio to ensure strategic plan outcomes by maximising the return on investment and adherence to the Investment Policy.

The Investment Committee met five times during 2006/07. It is currently comprised of four independent Directors, namely I Pollard (Chairman), G Hutchinson, D Michaelis and I Penfold.

Human Resources & Succession CommitteeThe Committee was established by the Board and is responsible for complying with the Human Resources & Succession Charter.

The Committee is responsible for the development and monitoring of the Company’s employment and remuneration policies.

The Human Resources & Succession Committee met twice during 2006/07. It is currently comprised of five independent Directors, namely I B Penfold (Chairman), C Bayliss, M J Capps, R Hood and D Gilbert.

Non-Executive Directors’ RemunerationNon-Executive Directors’ fees are reviewed by the Human Resources & Succession Committee and determined by the Board, in accordance with the Company’s Constitution, within the maximum aggregate annual amount of $600,000 which was approved by members at the 2001 Annual General Meeting.

The fees for President, Committee Chairmen and the other Non-Executive Directors are determined by having particular regard to fees paid to non-executive directors of peer group companies and other similar organisations.

Conflict of InterestDirectors are required to keep the Board advised, on an on going basis, of any interests that could potentially conflict with those of the Company. The Board has adopted procedures covering disclosure of interests by Directors which establish how actual or potential conflicts of interest are to be addressed. In any instance where the Board believes that a conflict exists, the Director concerned would not receive the relevant Board papers and would not participate in that part of the meeting where the item is considered.

Independent Professional Advice and Access to Company InformationEach Director has the right of access to all relevant Company information and, subject to prior consultation with the President, is entitled to seek independent professional advice in relation to matters pertaining to the performance of their role, at the Company’s cost.

ABN 63 000 014 504

> 32 Risk management and internal control frameworkFinancial Risk ManagementThe Board acknowledges that it is responsible for the overall internal control and risk management framework of the Company. To assist in discharging this responsibility, the Board has put in place a control framework that can be described as follows:-

Financial Reporting - a comprehensive Budget is prepared annually by Management and approved by the Directors. Management reports results monthly against that Budget and revised forecasts are prepared regularly. The Company reports regularly to the NSWBC Council.

Investment Appraisal - The Company has clearly defined guidelines covering capital expenditure. These include annual Budgets, detailed appraisal and review procedures, and authority levels and structured due diligence procedures prior to business acquisitions or divestments and post audits of significant capital expenditure items.

Business Risk Management, Compliance and ControlManagement of risk is an essential component of the Company’s strategy. This involves management of operational, financial and business risk.

The Company’s approach to investment risk overseen by the Investment Committee is as set out earlier in this Corporate Governance Statement and the exposure to risk is stated at Note 2 in the 2006/07 Annual Financial Report.

Comprehensive practices are in place in the following non-financial areas to ensure:

> occupational health, safety and environment, quality standards and management information systems deliver high standards of performance and compliance with regulations;

> business transactions are properly authorised and executed;

> appropriate internal compliance and control procedures are operating effectively;

> appropriate retention and succession planning;

> trade practices and fair trading regulation compliance; and

> property loss control measures at business sites are effective.

Ethical standardsThe Directors acknowledge the imperative of maintaining the highest standards of ethical conduct and legal compliance by all Directors and employees of the consolidated entity. The consolidated entity has in place a Code of Conduct and a number of codes and policies in areas such as discrimination, harassment and disclosure of interests.

No donations were made to any political party or candidate for political office during the year.

EnvironmentNSW Business Chamber Limited is committed to the protection of the environment, to the health and safety of its employees, customers and the public at large, and to compliance with all applicable environmental laws, rules and regulations in the jurisdictions in which it conducts its business.

The Company has determined that it complies with all relevant environmental legislation.


> 33PricewaterhouseCoopersABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 Sydney NSW 1171

DX 77 Sydney Australia

www.pwc.com/au

Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Auditor’s Independence Declaration

As lead auditor for the audit of NSW Business Chamber for the year ended 30 June 2007, I declare that to the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit, and

(b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of NSW Business Chamber and the subsidiaries it controlled during the period.

Manoj Santiago Partner Sydney PricewaterhouseCoopers 30 August 2007


ABN 63 000 014 504

> 34

NSW Business Chamber Limited and controlled entitiesIncome Statements for the year ended 30 June 2007

CONSOLIDATED PARENT ENTITY 2007 2006 2007 2006 NOTES $000 $000 $000 $000

Revenue from continuing operations 4 69,901 50,424 52,053 39,222

Other income 5 24,551 47,136 24,507 47,130

Advertising and marketing (2,229) (1,912) (1,594) (1,817)Building expenses (317) (691) (88) (560)Business establishment expense (15) (188) (15) (188)Consultants (4,184) (4,020) (3,667) (3,527)Depreciation and amortisation expense 6 (1,291) (2,694) (1,216) (2,658)Employee benefits expense (26,786) (22,597) (18,791) (15,950)Fair value adjustment relating to investment property (626) (67) - -Finance Costs 6 (693) (734) (693) (734)Impairment of Goodwill - (1,970) - -Maintenance expense (433) (557) (301) (554)Management fees – investments (3,609) (2,738) (3,609) (2,738)Motor vehicle expense (1,393) (1,076) (59) (43)Parking and tolls expense (411) (249) (249) (125)Printing and stationery expense (384) (310) (155) (113)Provision for non recovery of debt in controlled entities 6 - - 5,096 (1,951)Provision for non recovery of retentions from sale of building 495 (598) 495 (598)Provision for non recovery of WIP - 134 - -Rent & occupancy costs (2,438) (1,638) (1,238) (760)Sponsorship 27(d) (1,475) (542) (5,326) (540)Telephone and facsimile expense (1,117) (1,088) (578) (626)Travel expense (1,042) (760) (661) (510)Other expenses from ordinary activities (4,357) (2,842) (2,108) (1,296)

Profit before income tax expense 42,147 50,423 41,803 51,064Income tax expense 7 - - - -

Net Profit from continuing operations 42,147 50,423 41,803 51,064Profit/(Loss) from discontinued operations - - - -

Net Profit attributable to members of NSW Business Chamber Limited 22 42,147 50,423 41,803 51,064

The above income statements should be read in conjunction with the accompanying notes


> 35

NSW Business Chamber Limited and controlled entitiesBalance Sheets for the year ended 30 June 2007


Assets Current assets Cash and cash equivalents 8 32,597 26,731 29,697 25,088Trade and other receivables 9 8,301 10,732 7,242 10,399Other financial assets at fair value through profit or loss 10 363,162 321,162 363,162 321,162

Total current assets 404,060 358,625 400,101 356,649

Non-current assets Receivables 11 11,329 10,743 11,329 10,743Investments accounted for using the equity method 12 - - - -Other financial assets 13 3,670 4,357 3,670 4,357Property, plant and equipment 14 1,897 1,987 1,844 1,894Investment properties 15 146 733 - -Intangible assets 16 349 710 349 710

Total non-current assets 17,391 18,569 17,192 17,704

Total assets 421,451 377,194 417,293 374,353

Liabilities Current liabilities Trade and other payables 17 14,065 12,036 9,770 8,683Borrowings 18 65 66 65 66Provisions 19 780 614 780 614

Total current liabilities 14,910 12,716 10,615 9,363

Non-current liabilities Borrowings 20 - 65 - 65Provisions 21 531 550 372 422

Total non-current liabilities 531 615 372 487

Total liabilities 15,441 13,331 10,987 9,850

Net assets 406,010 363,863 406,306 364,503

Equity Reserves 22 - - - -Retained Profits 22 406,010 363,863 406,306 364,503

Total equity 406,010 363,863 406,306 364,503

The above income statements should be read in conjunction with the accompanying notes

The above balance sheets should be read in conjunction with the accompanying notes


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NSW Business Chamber Limited and controlled entitiesStatements of Changes in Equity for the year ended 30 June 2007


Total Equity at the beginning of the financial year 363,863 209,061 364,503 209,060

Profit for year 42,147 50,423 41,803 51,064

Transfer from asset revaluation reserve from sale of building 22 - 2,900 - 2,900Transfer from capital reserve 22 - 101,479 - 101,479

Total equity at the end of year 406,010 363,863 406,306 364,503

The above statements of changes in equity should be read in conjunction with the accompanying notes


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NSW Business Chamber Limited and controlled entitiesCash Flow Statements for the year ended 30 June 2007


Cash Flows from operating activities Net withdrawal from/(additions to) managed investments 23,949 26,199 23,949 26,199Receipts from other income 26,626 19,932 6,411 7,908Receipts from members 4,874 4,393 3,650 3,766Property rentals received 1,145 1,786 140 1,341Other interest received 439 1,586 341 1,555 57,033 53,896 34,491 40,769Payments to suppliers and employees (50,369) (45,087) (34,173) (31,848)

Net cash inflow/(outflow) from operating activities 31 6,664 8,809 318 8,921

Cash flows from investing activities Payments for motor vehicles, office furniture and equipment (628) (279) (628) (279)Proceeds from sale of plant and equipment - 43,688 - 43,688Net sale/(purchase) of managed investments - (43,688) - (43,688)Investments in subsidiaries - - - (179)Payments for intangibles (205) (103) (205) (103)Funding of subsidiaries - - 5,089 (1,809)Funding of related parties - (13,900) - (13,900)Funding of unrelated parties 100 100 100 100Borrowings (65) 131 (65) 131Payment for investment property - (773) - -

Net cash inflow(outflow) from investing activities (798) (14,824) 4,291 (16,039)

Net increase (decrease) in cash held 5,866 (6,015) 4,609 (7,118)Cash at the beginning of the financial year 26,731 32,746 25,088 32,206

Cash at the end of the financial year 8 32,597 26,731 29,697 25,088

The above statements of changes in equity should be read in conjunction with the accompanying notes

The above cash flow statements should be read in conjunction with the accompanying notes


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NSW Business Chamber Limited and controlled entitiesNotes to the Financial Statements 30 June 2007

1. Summary of significant accounting policiesThe principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report includes separate financial statements for NSW Business Chamber Limited as an individual entity and the consolidated entity consisting of NSW Business Chamber Limited and its subsidiaries.

(i) Basis of Preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards (AIFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.

Compliance with IFRS Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the consolidated financial statements and notes of NSW Business Chamber Limited comply with International Financial Reporting Standards (IFRS).

Early adoption of standards The Group has elected to apply the following pronouncement to the annual reporting period beginning 1 July 2006:

> revised AASB 101 – Presentation of Financial Statements (issued October 2006)

This includes applying the pronouncement to the comparatives in accordance with AASB 108 Accounting Policies – Changes in Accounting Estimates and Errors. No adjustments to any of the financial statements were required for the above pronouncement, but certain disclosures are no longer required and have therefore been omitted.

Historical cost convention These financial statements are prepared under the historical cost convention, except for investments, which are at fair value through profit or loss. Unless stated otherwise the accounting policies described below are consistent with those applied in the prior year. Comparative information is reclassified where appropriate to enhance comparability.

Critical accounting estimates The preparation of financial statements in conformity with AFIRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. These areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

(ii) Principles of Consolidation

(a) Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all entities controlled by NSW Business Chamber Limited (“parent entity”) as at 30 June 2007 and the results of all controlled entities for the year then ended. NSW Business Chamber Limited and its controlled entities together are referred to in this financial report as the consolidated entity. The effects of all transactions between entities in the consolidated entity are eliminated in full.

Where control of an entity is obtained during a financial year, its results are included in the consolidated statement of financial performance from the date on which control commences. Where control of an entity ceases during a financial year its results are included for that part of the year during which control existed.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the assets transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with policies adopted by the Group.

(b) Associates Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for in the parent entity financial statements using the cost method and in the consolidated financial statements using the equity method of accounting, after initially being recognised at cost.

The Group’s share of its associates’ post-acquisition profit or losses is recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.



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(iii) Revenue Recognition Revenue is measured at fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for the major business activities as follows:

1. Membership fees comprise annual subscriptions for the year brought to account on an accruals basis

2. Publication subscription income comprises annual subscriptions and is brought to account on an accruals basis

3. Other publications’ income is brought to account when goods are despatched to a customer pursuant to a sales order and the associated risks have passed to the customer

4. Rental income is brought to account on receipt

5. Other business services income is brought to account on delivery of service in accordance with engagement letters or other relevant contracts or agreements

6. Sponsorship and grants are brought to account when control is obtained. A liability is recognised for any unearned amounts.

(iv) Income Tax The parent entity as a non-profit organisation is exempt from the payment of income tax and capital gains tax.

In respect of non-exempt controlled entities, tax effect accounting procedures are followed whereby the income tax expense for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

(v) Property, Plant and Equipment All property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of land and buildings are credited, net of tax, to other reserves in members’ equity.

Depreciation is calculated using the straight line method to allocate their cost or re-valued amounts, net of their residual values, over their estimated useful lives, as follows:

Furniture, fittings & equipment 3 - 10 years Leasehold improvements 3 - 10 years Motor vehicles 5 years

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

(vi) Investments and other financial assets Classification The Group classifies its listed investment portfolio as fair value through profit or loss as it most accurately reflects the way management monitor and control these investments. Management determines the classification of its investments at the time of initial recognition.

(a) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are financial assets held for trading which are acquired principally for the purpose of selling in the short term with the intention of making a profit. Financial assets carried at fair value through profit or loss, are initially recognised at fair value and transaction costs are expensed in the income statement.

(b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. Loans and receivables are included in receivables in the balance sheet.

Recognition and derecognition Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. Financial assets at fair value through profit or loss are subsequently carried at fair value. Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category, including interest and dividend income, are presented in the income statement within other income or other expenses in the period in which they arise.

Investments in controlled entities are brought to account in the parent entity at cost less a provision for diminution where appropriate.


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(vii) Cash and cash equivalents For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(viii) Employee benefits Wages, salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Long Service Leave The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Retirement benefit obligations The consolidated entity contributes to a number of compliant superannuation plans in Australia. The employees and employer make contributions as percentages of salary and in accordance with the relevant legislation.

Performance related remuneration A liability for employee benefits in the form of performance related remuneration plan is recognised in other creditors when at least one of the following conditions is met:

> there are formal terms in the plan for determining the amount of the benefit

> the amounts to be paid are determined before the time of completion of the financial report, or

> past practice gives clear evidence of the amount of the obligation.

Liabilities for the performance related remuneration plan is expected to be settled within 12 months and are measured at the amounts expected to be paid when they are settled.

Employee benefit on-costs Employee benefit on-costs, including payroll tax, are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed format plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

(ix) Trade Receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement no more than 30 days from the date of recognition.

Collectability of trade debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectible, are written off. A provision for doubtful debts is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is recognised in the income statement.

(x) Trade and Other Payables These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(xi) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.



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(xii) Provisions Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been readily estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance sheet date. The increase in the provision due to the passage of time is recognised as interest expense.

(xiii) New accounting standards and UIG interpretations Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting periods. The Group’s and the parent entity’s assessment of the impact of these new standards and interpretations is set out below:

(i) AASB 7 Financial Instruments: Disclosures and AASB 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 7, AASB 1023 and AASB1038]. AASB 7 and AASB 2005-10 are applicable to annual reporting beginning on or after 1 January 2007. The Group has not adopted the standards early. Application of the standards will not affect any of the amounts recognised in the financial statements.

(xiv) Business combinations The purchase method of accounting is used to account for all business combinations. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition.

Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill.

(xv) Investment property Investment property, principally comprising a leasehold office building, is held for long-term rental yields and is not occupied by the Group. Investment property is carried at fair value, representing open-market value determined annually by external valuers. If this information is not available, the Group uses alternative valuation methods such as recent prices in less active markets or discounted cash flow projections. Changes in fair values are recorded in the income statement.

(xvi) Intangible assets (a) Goodwill Goodwill represents the excess of the cost of acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary/associate at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised. Instead, goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

(b) IT Development & Software Costs incurred in developing products or systems and costs incurred in acquiring software and licences that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include the external direct costs of materials and services. Amortisation is calculated on a straight line bases over periods generally ranging from 3 to 5 years.

IT development costs include only those costs directly attributable to the development phase and are only recognised following completion and where the Group has an intention and ability to use the asset.

(xvii) Leases Leases of property, plant and equipment in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases (note 26). Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight line basis over the period of the lease.

Lease income from operating leases is recognised in income on a straight line basis over the lease term (note 15).

(xviii) Rounding of amounts The company is of the kind referred to in Class Order 98/0100 issued by the Australian Securities and Investment Commission, relating to the ‘rounding off’ of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

ABN 63 000 014 504

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NSW Business Chamber Limited and controlled entitiesNotes to Consolidated Financial Statements 2007

2. Financial risk managementThe Group’s activities expose it to a variety of financial risks with respect to the investment portfolio market risk and cash flow interest rate risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Key features of the risk mitigation strategy adopted by the Board of Directors include:

(a) Market Risk

(1) Appointment of an investment committee As a sub-committee of the Board, the investment committee is responsible for monitoring the performance of the appointed investment consultant, custodian and investment managers. The investment committee reviews the investment strategy to reduce the volatility of mix of investment classes within the portfolio and recommends action to the Board.

(ii) Appointment of custodian and investment consultant The appointment of a custodian and investment consultant is to enhance the security of the Group’s investments and to report on the performance of the fund managers.

(iii) Yale Formula The Board has implemented a strategy of drawdown from the investment portfolio to finance ongoing activities of the Group whilst preserving the real value of the portfolio in perpetuity.

(b) Cash flow interest rate risk As the Group has no significant interest-bearing assets, the Group’s income and operating cash flows are not materially exposed to changes in market interest rates.

3. Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

(a) Critical accounting estimates and assumptions Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

(i) Estimated impairment of goodwill The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 1 (xvi).


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CONSOLIDATED PARENT ENTITY 2007 2006 2007 2006 $000 $000 $000 $000

4. Revenue

From continuing operations Fee for service and other income 24,467 16,910 4,452 4,012Employee Assistance - - 3,971 2,441Membership fees (note a) 4,145 3,404 3,353 3,095

28,612 20,314 11,776 9,548

Other revenue

Dividend income from managed investments 39,008 26,199 39,008 26,199Interest income from managed investments 298 1,513 298 1,513Interest income from other corporations 141 73 43 42Interest income from other related parties 801 725 801 725Royalties - (24) - (24)Rents and sub-lease rentals 1,041 1,624 127 1,219

41,289 30,110 40,277 29,674

Revenue from continuing operations 69,901 50,424 52,053 39,222

(a) Members of Illawarra and Hunter Business Chambers are also members of NSW Business Chamber Limited.2007 membership fees excludes $1,031,699 (2006: $1,009,586) of membership fees received by these organisations.

5. OTHER INCOME

Net gain on disposal of property, plant & equipment (note a) - 25,468 - 25,468Government Grants (note b) 1,070 604 1,026 598

Fair value gain on other financial assets at fair value through profit/(loss) (note 10) Movement in market value of investments

- realised gain/(loss) 19,769 11,304 19,769 11,304- unrealised gain/(loss) 3,712 9,760 3,712 9,760

24,551 47,136 24,507 47,130

In addition to the above revenue disclosure, the consolidated entity’s managed funds are traded by the appointed Fund Managers in the financial markets for the purpose of deriving further investment returns. The total proceeds arising were then reinvested into marketable securities.

(a) Net Gains on disposal of property, plant and equipment The consolidated net gain on disposal of property, plant and equipment in 2006 includes a gain of $25,468,000 on sale of land and buildings.

(b) Government Grants Grants of $1,069,550 (2006:$603,661) were recognised as other income by the Group during the financial year. A number of these grants extend into 2008 and will be acquitted in accordance with the terms of the grants. There are no unfulfilled conditions or contingencies relating to the 2007 year attached to these grants. The Group did not benefit from any other forms of government assistance.


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6. Expenses Profit before income tax includes the following specific expenses: Depreciation

- building - 393 - 393- plant and equipment 725 1,075 650 1,040

Total depreciation 725 1,468 650 1,433

Amortisation - Software development costs 567 1,226 567 1,225

Total amortisation 567 1,226 567 1,225

Finance costs - General interest and finance charges paid/payable 6 9 6 9- Capitalised interest now expensed (note 17) 687 725 687 725

Finance costs expensed 693 734 693 734

Rental expense relating to operating leases - Minimum lease payments 3,773 2,767 850 1,114

Net loss on disposal of property, plant & equipment 21 - 21 -

Included in other expenses - Subscriptions to other organisations 470 459 452 458 - Computer license fees 419 176 408 176 - Legal fees 294 387 248 309 - Insurance Expenses 203 148 203 148

Provision for non recovery of debt in controlled entities - Reduction in provision required to support subsidiaries due to improvement in net asset positions - - 5,096 (1,951)



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7. Income tax expense(a) There is no income tax attributable in either financial period for the parent entity. As a non-profit organisation it is exempt from the

payment of Income Tax and Capital Gains Tax. All non-exempt controlled entities have accumulated carry forward tax losses and are not liable for the payment of Income Tax or Capital Gains Tax.

(b) Numerical reconciliation of income tax to prima facie tax payable Profit from continuing operations before income tax expense 42,147 50,423 41,803 51,064

Tax at the Australian tax rate on 30% (2006 – 30%) 12,644 15,127 12,541 15,319 Tax effect of tax exempt income (11,637) (15,227) (12,541) (15,319) Tax effect of amounts which are not deductible (taxable) in calculating taxable income 110 108 - -

1,117 8 - Tax effect of tax losses not recognised/(recognised not) carried forward to future years (1,117) (8) - -

Income tax expense - - - -

(c) Tax losses Unused tax losses for which no deferred

tax asset has been recognised 15,490 19,212 - -

Potential tax benefit @ 30% All unused tax losses were incurred by Australian entities 4,647 5,764 - -

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8. Current assets – cash and cash equivalents

Cash at bank and in hand 5,554 2,675 2,654 1,032Deposits at call 92 86 92 86Cash equivalents 26,951 23,970 26,951 23,970

32,597 26,731 29,697 25,088

Cash equivalents represent monies invested in the short term by fund managers

(a) Reconciliation to cash at end of year

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:

Balances as above 32,597 26,731 29,697 25,088

Balances as per Statement of Cash Flows 32,597 26,731 29,697 25,088

(b) Cash at bank and in-hand

The effective interest rate on short-bank deposits was 6.08% (2006: 5.98%)

(c) Deposits on call

The deposits are bearing floating interest rates between 5.55% and 6.32% (2006 – 5.93% to 6.03%)

(d) Cash Equivalents

Cash equivalents represent monies invested in the short term by fund managers



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9. Current assets – trade and other receivables Trade receivables 3,652 3,635 3,097 3,220Less Provision for impairment of receivables (149) (163) (79) (127)

3,503 3,472 3,018 3,093

Investment income receivable 227 250 227 250Unsettled investment sales 2,358 5,418 2,358 5,418Loans to unrelated Entities 100 100 100 100Prepayments 257 341 136 334Other receivables 2,158 1,725 1,173 1,477Provision for non-recovery (302) (798) (302) (798)

4,798 7,036 3,692 6,781

Work in progress - 224 - -Less provision for non recovery of WIP - - - -

- 224 - -

Amounts due from controlled entities - - 7,720 12,809Provision for non-recovery - - (7,188) (12,284)

- - 532 525

8,301 10,732 7,242 10,399

(a) Other Receivables

These amounts generally arise from transactions outside the normal operating activities of the group.

(b) Effective interest rates and credit risk

Information concerning the effective interest rate and credit risk of both current and non-current receivables is set out in the non-current receivables note (note 11).

10. Current assets – other financial assets at fair value through profit and loss

Commonwealth and Semi-government bonds - 11,188 - 11,188Shares and Units in Public Entities 254,114 250,035 254,114 250,035Shares and Units in Unrelated Entities (incl. Equity and Pool Trusts) 31,597 16,596 31,597 16,596Other Investments (incl. Corporate Bonds and Investment Trust) 77,451 43,343 77,451 43,343

363,162 321,162 363,162 321,162

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11. Non-current assets - receivables Loans to unrelated entities 1,100 1,200 1,100 1,200Loans to other related parties 10,229 9,543 10,229 9,543

11,329 10,743 11,329 10,743

(a) Fair Values

The fair values and carrying values of non-current receivables of the group are as follows:

2007 2006 Carrying Fair Carrying Fair amount value amount value $000 $000 $000 $000

Loans to unrelated Entities 1,100 1,100 1,200 1,200Loans to other related parties 10,229 - 9,543

11,329 1,100 10,743 1,200

The fair values are based on cash flows discounted using current capital rates of 5.6% (2006: 5.1%).

(b) Interest Rate Risk

The Group’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the following tables:

Floating Non-interest Total interest rate bearing $000 $000 $000

2007 Trade Receivables - 3,503 3,503Unrelated parties receivables 1,100 - 1,100Other related parties receivables - 10,229 10,229Other receivables - 4,798 4,798

1,100 18,530 19,630

Weighted average interest rate 8.2% -

2006 Trade Receivables - 3,472 3,472Unrelated parties receivables 1,200 - 1,200Other related parties receivables - 9,543 9,543

Other receivables - 7,257 7,257

1,200 20,272 21,472

Weighted average interest rate 7.6% -

(c) Credit Risk

With the exception of other related party receivables there is no concentration of credit risk with respect to current and non-current receivables, as the Group has a large number of regionally dispersed customers. Refer to note 2 for more information on the risk management policy of the Group. Receivables from other related parties is fully secured by a fixed and floating charge over a portfolio of listed securities.



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CONSOLIDATED PARENT ENTITY 2007 2006 2007 2006 $ $ $ $

12. Non-current assets – investments accounted for using the equity method

Shares in associates (note 30) 10 - 10 -

10 - 10 -

(a) Shares in associates

Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting and are carried at cost by the parent entity (refer note 13).

13. Non-current assets – other financial assets $000 $000 $000 $000

Shares in subsidiaries (note 29) - - 15,480 15,480Shares in Associates (note 29) - - - - Less provision for diminution in value - - (15,480) (15,480)Capitalised interest 5,082 5,082 5,082 5,082 Less amortisation of capitalised interest (1,412) (725) (1,412) (725)

3,670 4,357 3,670 4,357

These financial assets are carried at cost.

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14. Non-current assets – property, plant and equipment Furniture Freehold Freehold Motor Fittings and Leasehold Land Building Vehicles Equipment Improvements Total $000 $000 $000 $000 $000 $000

Consolidated

At 1 July 2005 Cost or fair value 8,000 16,788 152 6,504 7,511 38,955Accumulated depreciation - (7,928) (79) (5,751) (4,740) (18,498)

Net book amount 8,000 8,860 73 753 2,771 20,457

Year ended 30 June 2006 Opening net book amount 8,000 8,860 73 753 2,771 20,457Acquisition of subsidiary - - - 106 - 106Additions - - - 152 127 279Disposals (8,000) (8,466) - (15) (961) (17,442)Depreciation charge - (394) (18) (492) (509) (1,413)

Closing net book amount - - 55 504 1,428 1,987

At 30 June 2006 Cost or fair value - - 152 7,407 4,610 12,169Accumulated depreciation - - (97) (6,903) (3,182) (10,182)

Net book amount - - 55 504 1,428 1,987

Year ended 30 June 2007 Opening net book amount - - 55 504 1,428 1,987Additions - - - 309 319 628Disposals - - (45) - - (45)Depreciation charge - - (10) (300) (363) (673)

Closing net book amount - - - 513 1,384 1,897

At 30 June 2007 Cost or fair value - - - 7,715 4,929 12,644Accumulated depreciation - - - (7,202) (3,545) (10,747)

Net book amount - - - 513 1,384 1,897



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14. Non-current assets – property, plant and equipment (continued) Furniture Freehold Freehold Motor Fittings and Leasehold Land Building Vehicles Equipment Improvements Total $000 $000 $000 $000 $000 $000

Parent Entity

At 1 July 2005 Cost or fair value 8,000 16,788 152 6,504 7,511 38,955Accumulated depreciation - (7,928) (79) (5,751) (4,740) (18,498)

Net book amount 8,000 8,860 73 753 2,771 20,457

Year ended 30 June 2006 Opening net book amount 8,000 8,860 73 753 2,771 20,457Additions - - - 152 127 279Disposals (8,000) (8,466) - (15) (961) (17,442)Depreciation charge - (394) (18) (479) (509) (1,400)

Closing net book amount - - 55 411 1,428 1,894

At 30 June 2006 Cost or fair value - - 152 6,641 4,610 11,403Accumulated depreciation - - (97) (6,230) (3,182) (9,509)

Net book amount - - 55 411 1,428 1,894

Year ended 30 June 2007 Opening net book amount - - 55 411 1,428 1,894Additions - - - 309 319 628Disposals - - (45) - - (45)Depreciation charge - - (10) (261) (363) (633)

Closing net book amount - - - 461 1,384 1,844

At 30 June 2007 Cost or fair value - - - 6,951 4,929 11,879Accumulated depreciation - - - (6,490) (3,545) (10,035)

Net book amount - - - 461 1,384 1,844

(a) Valuation of Land and Building

The land and buildings sold on 19 December 2005 was valued at its deemed cost.

The Asset Revaluation Reserve was transferred to Retained Profits on the sale of the building on 19 December 2005.

ABN 63 000 014 504

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15. Non-current assets – investment properties At Fair Value

Opening balance at 1 July 773 - - -Acquisitions of subsidiary - 840 - -Net gain (loss) from fair value adjustment (626) (67) - -

Closing balance at 30 June 146 773 - -

(a) Operating amounts recognised in profit and loss for investment property

Rental income 477 193 - -Direct operating expenses from property that generated rental income (484) (159) - -

(7) 34 - -

(b) Valuation basis

The basis of valuation of investment properties is fair value being the amount for which the properties could be exchanged between willing parties in an arm’s length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases. The valuation was performed by the managing agent of the property.

(c) Contractual obligations

Refer note 26 for disclosure of any contractual obligation to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

(d) Leasing arrangements

The investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Minimum lease payments receivable on leases of investment properties are as follows:

Minimum lease payments under non-cancellable operating leases of the investment property not recognised in the financial statements are receivables as follows:

Within one year 384 559 - -Later than one year but not later than five years 327 1,686 - -Later than five years - - - -

711 2,245 - -



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16. Non-current assets – intangible assets Software Development Costs Goodwill Total $000 $000 $000Consolidated At 1 July 2005 Cost 5,424 - 5,424Accumulated amortisation and impairment (3,592) - (3,592)Net book amount 1,832 - 1,832

Year ended 30 June 2006 Opening net book amount 1,832 - 1,832Additions 103 1,970 2,073Impairment - (1,970) (1,970)Amortisation charge (1,225) - (1,225)Closing net book amount 710 - 710

At 30 June 2006 Cost 5,527 1,970 7,497Accumulated amortisation and impairment (4,817) (1,970) (6,787)Net book amount 710 - 710

Year ended 30 June 2007 Opening net book amount 710 - 710Additions 205 - 205Amortisation charge (566) - (566)Closing net book amount 349 - 349

At 30 June 2007 Cost 5,732 - 5,732Accumulated amortisation and impairment (5,383) - (5,383)Net book amount 349 - 349

Parent EntityAt 1 July 2005 Cost 5,424 - 5,424Accumulated amortisation and impairment (3,592) - (3,592)Net book amount 1,832 - 1,832

Year ended 30 June 2006 Opening net book amount 1,832 - 1,832Additions 103 1,970 2,073Impairment - (1,970) (1,970)Amortisation charge (1,225) - (1,225)Closing net book amount 710 - 710

At 30 June 2006 Cost 5,527 1,970 7,497Accumulated amortisation and impairment (4,817) (1,970) (6,787)Net book amount 710 - 710

Year ended 30 June 2007 Opening net book amount 710 - 710Additions 205 - 205Amortisation charge (566) - (566)Closing net book amount 349 - 349

At 30 June 2007 Cost 5,732 - 5,732Accumulated amortisation and impairment (5,383) - (5,383)Net book amount 349 - 349

The impairment charge arose with respect to the goodwill recognised on the merger with the Sydney Chamber of Commerce (formally State Chamber of Commerce (NSW) following a decision to realign the strategy to focus on membership and events initiatives for the Sydney city region.

ABN 63 000 014 504

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17. Current liabilities – trade and other receivables Trade payables 1,821 895 1,686 820Unsettled investment transactions 564 188 564 188Grants unearned 441 139 390 139Other payables 6,301 6,154 4,041 4,434Deferred income 188 99 121 99Membership fees and other income in advance 3,550 3,264 2,968 3,003Refundable carnet premiums 1,200 1,297 - -

14,065 12,036 9,770 8,683

18. Current liabilities - borrowings Secured Other Loans (refer note 20 (b)) 65 66 65 66

Total current borrowings 65 66 65 66

19. Current liabilities – provisions Employee benefits – long service leave 780 614 780 614

780 614 780 614



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20. Non-current liabilities – borrowings Secured Other Loans - 65 - 65

Total non-current borrowings - 65 - 66

(a) Total secured liabilities

The total secured liabilities (current and non-current) are as follows: Other Loans 66 131 66 131

Total secured liabilities 66 131 66 131

(b) Other Loans

Other loans are hire purchase agreements repayable over the next two years. These loans are secured by a fixed charge over the assets purchased via the loan.

(c) Interest rate risk exposure

The following table sets out the Group’s exposure to interest rate risk.

2007 2006 Fixed Interest Fixed Interest maturing in maturing in one years or less Total two years or less Total $000 $000 $000 $000

Other Loans 66 66 131 131

66 66 131 131

Weighted average interest rate 5.60% 5.16%

(c) Fair Value

The carrying amount and fair value of borrowings at balance date are:

2007 2006 Fixed Interest Total Fixed Interest Total maturing in maturing in one years or less two years or less $000 $000 $000 $000

On-balance sheet Other Loans 66 66 131 131

66 66 131 131

None of the classes are readily traded on organised markets in standardised form.Fair value is inclusive of costs which would be incurred on settlement of a liability.

(1) On-balance sheet The fair value of borrowings is based upon the market prices where a market exists or by discounting the expected future cash flows by the current interest rate for liabilities with similar risk profiles.

ABN 63 000 014 504

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21. Non-current liabilities – provisions Employee benefits – long service leave 531 550 372 422

531 550 372 422

22. Reserves and retained profits

(a) Reserves

Property, plant and equipment reserve - - - -Capital reserve - - - -

- - - -

Movements Property, plant & equipment revaluation reserve Balance 1 July - 2,900 - 2,900 Sale of asset – transfer to retained profits - (2,900) - (2,900)

Balance 30 June - - - -

Capital Reserve Balance 1 July - 101,479 - 101,479Transfer to retained profits - (101,479) - (101,479)

Balance 30 June - - - -

(b) Retained profits

Movements in retained profits are as follows: Balance 1 July 363,863 209,061 364,503 209,060Adjustment on adoption of AASB 132 & 139 - - - -Transfer from PP&E revaluation reserve on sale of asset - 2,900 - 2,900Transfer from capital reserve - 101,479 - 101,479Net profit for the year 42,147 50,423 41,803 51,064

Balance 30 June 406,010 363,863 406,306 364,503

(c) Nature and purpose of reserves

(i) Property, plant and equipment revaluation reserve The property, plant and equipment revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as describe in note 1(iv).

(ii) Capital Reserve The capital reserve was maintained to fund future strategic initiatives of the group and has been transferred to retained profits.



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23. Key management personnel disclosures(a) Directors

The following persons were directors of NSW Business Chamber Limited during the financial year:

(i) President - non-executive K L Wilson

(ii) Deputy President - non-executive I B Penfold

(iii) Non-executive directors C Bayliss R L Hood Prof. T H Cairney G Hutchinson M J Capps D Michaelis D Gilbert I A Pollard J Bingham – resigned 1 August 2006 D J Malloch - resigned 2 August 2006

(b) Other key management personnel

Name Position

K J MacDonald Chief Executive Officer S P Spicer Chief Operating Officer/Chief Financial Officer (commenced 28 May 2007)D P Lindfield Chief Financial Officer/Company Secretary (resigned 9 January 2007) P H Orton General Manager Policy G B Pattison General Manager Workplace Solutions C Gibbs Stewart General Manager International Trade D J Cocks General Manager Australian Business Limited Apprenticeships Centre Pty Limited J Moyes General Manager Sales, Marketing & Distribution (resigned 10 August 2007)D C Hirsch General Manager Information Technology (resigned 11 September 2006)H Bermingham General Manager Human Resources (commenced 28 May 2007)G A Rigg General Manager Human Resources (resigned 28 February 2007)P Forsythe Executive Director – Sydney Chamber of Commerce (commenced 25 September 2006)M H Osmond Chief Executive Officer – Sydney Chamber of Commerce (resigned 26 July 2006) A Berzins Company Secretary (commenced 10 January 2007)

Short term employee benefits 2,353 1,962 2,353 1,962Termination benefits 508 - 508 -

2,861 1,962 2,861 1,962

ABN 63 000 014 504

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24. Remuneration of auditor During the year the following fees were paid or payable for services provided by the auditors of the parent entity, its related practices and non-related audit firms.

(a) Assurance Services

Audit Services PricewaterhouseCoopers Australian firm

Audit and review of financial reports and other audit work under the Corporations Act 2001 150 130 130 130

Total remuneration for audit services 150 130 130 130

Other assurance services PricewaterhouseCoopers Australian firm

Audit of regulatory returns 2 2 2 2Due diligence Services - 56 - 56AIFRS accounting services 29 9 29 9Audit of transition of investment custodian 20 - 20 -Other accounting services 15 - 15 -

Total remuneration for other assurance services 66 67 66 67

Total remuneration for assurance services 216 197 196 197

(b) Taxation Services

PricewaterhouseCoopers Australian firm Taxation compliance services including review of income tax returns for entities in the group 9 10 - 10Income tax status review 3 15 3 15

Total remuneration for taxation services 12 25 3 25

It is the Group’s policy to employ PricewaterhouseCoopers on assignments additional to their statutory audit duties where PricewaterhouseCoopers’ expertise and experience with the Group are important. These assignments are principally tax advice and due diligence reporting on acquisitions, or where PricewaterhouseCoopers is awarded assignments on a competitive basis. It is the Group’s policy to seek competitive tender for all major consulting work.

25. Contingencies (a) Contingent assets

NSW Business Chamber Limited has entered into an earn out agreement in connection with the disposal of 60% of the Small Business Training Company division. Additional cash consideration of up to $625,000 will be receivable by the consolidated entity if the operations of SBTC Pty Limited achieve specified performance criteria.

The contingent asset has not been recognised as a receivable at 30 June 2006 or 2007 as the amount of the earn out is dependent on the future performance of the operations over the period from 15 April 2005 to 15 April 2012 and cannot be reliably measured at this stage.



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26. Commitments

(a) Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Investment property Within one year 23 32 23 32

23 32 23 32

(b) Lease commitments

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, payable:

Within one year 3,794 3,124 861 572Later than one year but not later than five years 10,669 9,644 1,979 1,233Later than five years 8,268 9,804 1,641 953

22,731 22,572 4,481 2,758Representing:

Non-cancellable operating leases 22,731 22,572 4,481 2,758Future finance charges on finance leases - - - -

22,731 22,572 4,481 2,758

(1) Operating leases The Group leases various offices under non-cancellable operating leases expiring within one to ten years. The leases are for varying terms, escalation clauses and renewal rights. On renewal, the terms of the lease are negotiable.

The Group leases various motor vehicles, office and computer equipment under non-cancellable operating leases expiring within one to three years. These leases are for varying terms. On renewal, the terms of the leases are negotiable.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within one year 3,794 3,124 861 572Later than one year but not later than five years 10,669 9,644 1,979 1,233Later than five years 8,268 9,804 1,641 953

22,731 22,572 4,481 2,758Future minimum lease payments expected to be received in relation to non-cancellable sub-leases of operating leases 711 263 - -

(c) Repairs and maintenance: Investment properties

Contractual obligations for future repairs and maintenance – not recognised as a liability 45 36 - -

(d) Investing Commitments

A commitment for an investment in securities pursuant to the provisions of Trust Deeds dated 3 February 1998 and 24 September 2003 and 5 May 2006 managed by Macquarie Bank Limited.

Due after one year dependent upon drawdowns 16,920 27,321 16,920 27,321

16,920 27,321 16,920 27,321

ABN 63 000 014 504

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27. Related party transactions (a) Parent entity

The parent entity and ultimate controlling party within the Group is NSW Business Chamber Limited.

(b) Subsidiaries

Interests in subsidiaries are set out in note 29.

(c) Key management personnel

Disclosures relating to key management personnel are set out in note 23.

(d) Transactions with related parties

The following transactions occurred with related parties:Sale of goods and services

Sale of human resource and support services to subsidiaries - - 1,206 1,072Sale of human resource and support services to other related parties 159 165 159 165

Other transactions: Remuneration paid to directors of the ultimate Australian parent entity 406 875 406 875Sponsorship of subsidiaries activities - - 3,944 -Purchasing of training and consulting services from other related parties 20 - 20 -- (Organisation ChangeWorks)

(e) Loans to/from related parties

Loans to subsidiaries Beginning of the year - - 12,809 11,000Loans advanced - - 2,752 6,001Loan repayments received - - (7,841) (4,192)Interest charged - - - -Interest received - - - -

End of year - - 7,720 12,809

Loans to other related parties Beginning of the year 13,900 - 13,900 -Loans advanced - 13,900 - 13,900Loan repayments received - - - -Interest charged 687 725 687 725Interest received (687) (725) (687) (725)

End of year 13,900 13,900 13,900 13,900



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28. Business combinations (a) Summary of acquisition

On 16 February 2006 the parent entity acquired a controlling interest in the Sydney Chamber of Commerce (formally known as the State Chamber of Commerce NSW).

The acquired business contributed revenues of $995,000 and net loss of $286,000 to the Group for the period from 16 February 2006 to 30 June 2006.

Details of the fair value of the assets and liabilities acquired and goodwill are as follows: $000

Purchase consideration Cash paid - Direct costs relating to acquisition 179

Total purchase consideration 179

Fair value of net identifiable liabilities assumed 1,791

Goodwill 1,970

(b) Purchase consideration CONSOLIDATED PARENT ENTITY 2007 2006 2007 2006 $000 $000 $000 $000

Outflow of cash to acquire subsidiary, net of cash acquired Cash consideration - (179) - (179)Overdraft assumed - (142) - (142)

Outflow of cash (321) (321)

(c) Assets and liabilities acquired

The assets and (liabilities) arising from the acquisition are as follows:

Acquiree’s Fair carrying amount value $000 $000

Cash (142) (142) Trade receivables 185 185 Other receivables 198 198 Intercompany payable (531) (531) Prepayments 11 11 Plant and equipment 105 105 Trade payables (100) (100) Accruals (348) (435) FFS in advance (1,066) (1,066) York St lease 840 840 Carnet premiums (855) (855)

Net liabilities (1,703) (1,790)

The disclosures required under AASB 3 paragraph 70 can not be made following the decision to realign the Sydney Chamber of Commerce (formally known as the State Chamber of Commerce (NSW)) strategy to focus on membership and events initiatives for the Sydney city region.

ABN 63 000 014 504

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29. Subsidiaries The consolidated financial statements incorporate the assets, liabilities and the results of the following subsidiaries in accordance with the accounting policy described in note 1 (a).

Country of Equity holding incorporation Activity 2007 2006 % %

Parent Entity

NSW Business Chamber Limited Australia Industry and Business Services Organisation

Controlled Entities

Australian Chambernet Pty Limited Australia Non Trading * 100 100Australian Business Limited Apprenticeships Centre Australia Apprenticeship supplier 100 100Pty Limited Australian Apprenticeships Alliance Pty Limited Australia Apprenticeship supplier 100 -Workplaceinfo Pty Limited Australia Non Trading * 100 100Australian Business Pty Limited Australia Professional Services 100 100Sydney Chamber of Commerce Australia Industry and Business # #

Services Organisation

* These entities are not required to prepare audited statutory accounts.

# Sydney Chamber of Commerce is a company limited by guarantee and NSW Business Chamber Limited (NSWBC) owns a special membership which entitles NSWBC to control Sydney Chamber of Commerce.



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30. Investments in associates (a) Carrying amounts

Information relating to associates is set out below:

Name of company Principal Ownership interests CONSOLIDATED PARENT ENTITY activity 2007 2006 2007 2006 2007 2006

% % $ $ $ $

Unlisted Small Business Training Company Training 40 40 - - - -Australian Chambers Alliance Professional Services 14 - 10 - 10 -

10 - 10 -

The above associates are incorporated in Australia

(b) Movement in carrying amounts

Carrying amount at the beginning of the financial year - 40 - 40Investment in Associate 10 - 10 -Share of losses for year - (40) - (40)

Carrying amount at the end of the financial year 10 - 10 -

(c) Share of associate’s profit or losses

Profit (Loss) before income tax (501,299) (420,193) Income tax expense - -

Profit (Loss) after income tax (501,299) (420,193)

It is not expected that the associate will make a profit therefore according to the rules contained in AASB 128 no further losses are recognised where losses exceed the interest in the associate.

ABN 63 000 014 504

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31. Reconciliation of operating profit/(loss) after income tax to net cash inflows from operating activities Operating profit/(loss) after income tax 42,147 50,424 41,803 51,065Depreciation and amortisation 1,292 2,693 1,216 2,658Fair value adjustment to investment property 626 - - -Loss/(Profit) on sale of plant and equipment 21 (25,468) 21 (25,468)Provision for non recovery of debt in controlled entity - - (5,096) 1,951Decrease/(increase) in trade debtors (18) 65 120 423Decrease/(increase) in other receivables 2,463 1,702 3,090 667Decrease/(increase) in investments net of transfers (42,000) (22,021) (42,000) (22,151)Increase/(decrease) in creditors 1,999 1,303 1,094 (303)Increase/(decrease) in other provisions 148 303 118 273Provision for doubtful debts (14) (192) (48) (194)

Net cash inflow/(outflow) from operating activities 6,664 8,809 318 8,921



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NSW Business Chamber Limited and controlled entitiesConsolidated Financial Statements 2007

Directors’ DeclarationIn the directors’ opinion:

(a) the financial statements and notes set out on pages 34 to 64 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(ii) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2007 and of its performance, for the financial year ended on that date; and

(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

The directors have been given the declaration by the Chief Executive Officer and Chief Financial Officer as defined by Section 295A of the Corporations Act (2001).

This declaration is made in accordance with a resolution of the directors.30 August 2007

K Wilson I PenfoldPresident Deputy President

ABN 63 000 014 504

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Report on the financial report We have audited the accompanying financial report of NSW Business Chamber Limited (the company), which comprises the balance sheet as at 30 June 2007, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration for both NSW Business Chamber Limited and the NSW Business Chamber Limited Group (the consolidated entity). The consolidated entity comprises the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

For further explanation of an audit, visit our website www.pwc.com/au/financialstatementaudit.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

PricewaterhouseCoopersABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 Sydney NSW 1171

DX 77 Sydney Australia

www.pwc.com/au

Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Independent auditor’s report to the members of NSW Business Chamber Limited



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Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion

In our opinion:

(a) the financial report of NSW Business Chamber Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2007 and of their performance for the period ended on that date; and

(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

(b) the consolidated financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 1.

PricewaterhouseCoopers

Manoj Santiago Partner Sydney PricewaterhouseCoopers 30 August 2007

ABN 63 000 014 504

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Notes



NSW Business Chamber as part of the NSW Government’s initiative, Sustainability Advantage, is intent on using recycled paper in its communications. The stock used in this annual report is Spicers Paper Tudor RP, a 100% Australian Made recycled waste paper which does not use virgin pulp hence contributing to the preservation of our natural forests.


nswbusinesschamber.com.au NBC

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NSW Business Chamber140 Arthur Street North Sydney NSW 2060

Locked Bag 938 North Sydney NSW 2059

t > 13 26 96 f > 1300 655 277 e > [email protected]

Printed on 100% recycled paper

NSW Business Chamber Ltd ABN 63 000 014 504

NSW Business Chamber represents more than 32,000 businesses and connects more than 100,000 businesses across Australia through the State and Territory Chamber Network.

NSW Business Chamber’s purpose is to champion the cause and growth of business. Through research, knowledge and policy achievements, we offer solutions that stimulate business growth nationwide and globally.

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