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Chief Executive Update 21 September 2023

21 September 2023

Some of you will have been involved in our Housing Taskforce, which is nearing completion. On Tuesday I had an opinion piece published in the Herald Sun which highlights what we have heard during the extensive consultation.

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It’s clear there is a housing shortage and it will continue to impact business if left unaddressed. The basis is simple - you can’t have a business without people, and you can’t have people without housing. We must think outside of the box to boost supply and accelerate planning approvals to remove the bottlenecks that have the current system in a chokehold.

The Taskforce provides solutions through strategic long-term planning, reforms, streamlining processes and collaboration and push for boldness in innovation. You can read more here, and keep an eye out for our Housing Taskforce release. Thank you to our members, for providing the information, concerns and proposed solutions for us to share.

The State Government’s Housing Statement, released yesterday, does echo a lot of what the Victorian Chamber has been hearing. Some of our recommendations will align, some will deviate, and what we need is real action with speed to follow the Government’s announcements.

We will release our recommendations over the next few weeks, and we have already spoken with the State around some of the areas of note from our Taskforce findings.

From yesterday’s announcement we were disappointed to see the Airbnb levy confirmed, although we were pleased that it did not extend further to hotels and other accommodation. You might recall that we were active with the AHA to represent our combined position with Minister Dimopoulos recently.

The 7.5 per cent levy will deter visitors to the State, particularly Regional Victoria, and drive tourism elsewhere. We recognise that similar levies exist overseas, but the Chamber does not support this mechanism as a sole Victorian initiative. By not implementing this nationally, Victoria is going to remain disadvantaged, and we will certainly lose visitors to other states and territories.

On other policy matters, the Victoria Renewable Gas Consultation Paper is now open for feedback until 6 October 2023. This is a unique opportunity for us to shape the future of renewable energy in Victoria and the submissions received will inform Victorian Government renewable gas policy and the development of future updates to the gas substitution roadmap. I encourage each of you to share your insights and ideas through the consultation process.

The Chamber supports Melbourne Airport’s submission of liberalising air service agreements to provide airlines with more certainty and increase the likelihood of Victoria securing more flight services. A viable airport sector adds depth and diversity to Australia’s economy. We encourage any plans that promote productivity, tourism, global access to trade and economic investment. Melbourne Airport CEO Lorie Argus’ appeal for an “open skies” approach is the right call. Melbourne Airport has slots available for more international airlines, and Victoria can take advantage of this.

I’m looking forward to seeing so many of you at our AFL Grand Final lunch next week, with a record number of guests expected. It promises to be an exciting event filled with networking opportunities and insights into the future of Australia’s biggest game. I have my fingers crossed for a double Victorian showdown! Looking ahead, I’d also encourage you to secure your seat now for our Melbourne Cup Carnival Lunch. It is a standout event that brings our members together in celebration, and I’m confident it will be a memorable occasion.

It was a pleasure to meet with Commonwealth Businesswomen’s Network Executive Director Arif Zaman, who is visiting Melbourne from London, and Commonwealth Businesswomen’s Network Chair Freda Miriklis to discuss how we can work together to share our Chamber Change program with other Commonwealth Nations. Watch this space!

We also met with Chair of the Suburban Rail Loop, James Merlino, and CEO Frankie Carroll yesterday for a briefing on the next steps of what is the largest infrastructure project in Victoria’s history, and the State’s biggest investment in transport and precinct development. We received some positive insights and recognise there will be opportunities for Victorian manufacturers and supply businesses.

I hope that those with school-aged children are enjoying the holidays. Whether it be off to Preliminary Final tomorrow, the Melbourne Royal Show, off to the Melbourne Museum, out to your favourite part of Regional Victoria, or even the NHL Ice Hockey game this Saturday, I hope you can enjoy this magic weather across our State.

Have a great week.

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