Welcome to the first issue of your Chamber’s E-Newsletter for 2006, in which you will find the latest chamber news, and business related stories from Australia and Armenia. The new look of our newsletter is reflected in our updated website which can be viewed at www.armenianchamber.com.au.

To ensure our chamber continues to run smoothly, please remember to do the following, if you haven't already done so:
1. Pay your membership dues
2. Send in your member details update form with or without changes
3. Send us details of any benefits you wish to offer fellow members through our NEW Membership Benefits Scheme

As always, THIS IS YOUR NEWSLETTER, and we would appreciate any comments, suggestions, or submissions you may have. Should you wish to contribute, please contact our office on (02) 9418 9964 or at info@armenianchamber.com.au.

ACCA News	Australian Business News	Armenian Business News	Calendar- Community

VISIT ARMENIA WITH THE CHAMBER IN SEPTEMBER 2006!

Travel Cafe Sydney is currently preparing a package for Chamber members who are interested in visiting Armenia to learn more about the business opportunities the country can offer. This trip is currently scheduled for September 2006, and a minimum of ten persons are needed. For those interested in learning more about the event, the Travel Cafe are holding an information night on Wednesday 29th March starting at 7.00pm. Please RVSP to Harmick Hacobian on 0418 646 246 by 20th March.

SEND IN YOUR APPLICATIONS TO ADVERTISE IN THE 2006 ARMENIAN PLATINUM BUSINESS DIRECTORY NOW!

WHAT A NIGHT: ACCA'S CHRISTMAS PARTY

As 2005 drew to a close, 80 members and friends of the Armenian Chamber of Commerce joined together to celebrate Christmas Time. The function took place on the 6th December, on the beautifully appointed Southern Star. As guests feasted upon the delicious seafood buffet, they enjoyed spectacular views of Sydney Harbour, and were entertained by the band Mix and Match. The night was a huge success, with everyone coming together to enjoy another fantastic year for the Armenian Chamber of Commerce.

Photos of the Night

Australian Business News

Sydney's booming financial services
Source: www.business.nsw.gov.au

A new profile compiled by the NSW Department of State and Regional Development shows that financial services employment has grown by more than 24 per cent in the past decade.

The Financial Services Growth Industry Profile shows that growth in the sector is being driven by investment from overseas companies that have set up their regional headquarters in Sydney.

Sydney’s financial services sector workforce is now almost half the size of London’s and more than one-third the size of New York City’s.

There are now more than 150,000 people employed in financial services in NSW – or 42 per cent of the total number employed Australia-wide.

The report showed that since 1994-1995:

• The State’s financial services sector grew by almost 25 per cent
  
• NSW had created jobs in the financial services sector at a rate of 2 to 1 when compared with the rest of Australia (30,000 in NSW, 15,000 in the rest of Australia).

Investment in Sydney by overseas-headquartered operations is driving the export growth and the expansion in jobs – which are among the best paid in the economy.

Over the past decade the average annual growth rate in the sector's value added was 10 per cent, and this means thousands of high skilled, well paid jobs have been created.

The launch coincided with a meeting with the NSW Minister for State Development John Watkins and senior Deutsche Bank representatives Mr Herman-Josef Lamberti, Global Board member Deutsche bank and Mr Chum Darvall, CEO Deutsche Bank Australia and New Zealand.

Deutsche Bank’s successful Global Technology and Operations Centre has grown to almost 250 people since it set up here in 2003.

The bank’s global head of foreign exchange, money markets and commodities and its global head of e-support recently relocated from London to Sydney – demonstrating how attractive Sydney is as a location for high-end financial services jobs.

Deutsche Bank’s ongoing dedication to Sydney underscores the Government’s commitment to attracting foreign banks and foreign investment.

The Financial Services Growth Industry Profile can be downloaded from this website.

Retail Leases Amendment Act 2005
Source www.retail.nsw.gov.au

Following a comprehensive review, including extensive industry consultation, amendments were made to the Act. These amendments commence on January 1, 2006.

The Act generally covers retail shops of less than 1000 square metres, excluding car parking and unattached storage areas, whether located on a street corner, in a strip of shops or in a shopping centre, mall, court or arcade.

The major changes to the Act are in the following areas:

• Pre-lease stage – to enhance clarity about the requirements on both tenants and landlords prior to signing the lease
• Operation of the lease – to improve access to information by parties to a lease, so they can negotiate on a more equal basis
• Market rent review – to improve the effectiveness of the rent review process and the resolution of disputes about current market value
• Retail lease bond scheme – to create a security bond scheme to safeguard the collection and management of cash bonds
• Lease assignment – to streamline the process for transferring a lease to another person
• Dispute resolution – to update the capacity of the Administrative Decisions Tribunal to resolve disagreements between landlords and tenants.
  

These changes are simple, transparent and easy to comply with. Both parties in a shop lease will be better informed about what the lease requires of them. This will lead to better business planning and fewer misunderstandings.

This summary has been prepared to provide short-form information on the amendments. The full context and detail should be checked by consulting www.austlii.edu.au to access the Act.

Small Business Regulation Review
Source: www.smallbiz.nsw.gov.au

On 17 January, 2006 the Premier announced a renewed focus on regulatory reform in New South Wales, including a review of small business regulation.

The Government recognises that the impact of business regulation may fall disproportionately on small firms which might not have the resources of large business to comply with business regulatory requirements. The Government is also aware that business regulation has the unintended potential to erect barriers to entry that in turn impact the competitive environment, to the detriment of the broader community.

To address these issues, the Minister for Small Business has established a Small Business Regulation Review Taskforce (the Taskforce). The role of the Taskforce is to assess regulations that impact small firms and recommend actions that will make compliance with regulations by small business operators simpler. This is expected to yield savings to business and assist them to improve their compliance with regulation.

Recognising the diversity of the small business sector, the Taskforce will conduct a rolling program of reviews on a sector-by-sector basis. In conducting these reviews the Taskforce will examine:

• regulatory controls that impose administrative burdens on small business and create unintended consequences, particularly for small firms in the start-up or business expansion stage;
  
• opportunities for agencies and businesses to apply technology to reduce the administrative burden on small firms;
  
• any overlapping, duplicative or inconsistent requirements created by various legislative requirements;
  
• domestic and international best practice approaches that could be applied in New South Wales; and
  
• recommend mechanisms that Government should consider adopting to manage administrative burdens from regulations imposed on small firms.
  
• The Taskforce will not analyse rates of fees and charges payable by business, but it may examine matters relating to compliance costs with such obligations by small firms.

The Taskforce will:

• develop a small business regulation review methodology;
  
• identify and recommend small business priority sectors to be reviewed;
  
• recommend a timeline for review of these small business priority sectors;
  
• consult widely to ensure that the views of industry participants are heard and may call for submissions from industry representatives and participants;
  
• endeavour to estimate the cost of compliance on small firms of various regulations; and
  
• co-operate with other jurisdictions in its consideration of business regulatory issues and will take into account work being done by them.
  

The Taskforce is expected to provide its first report to the Minister for Small Business by the middle of March, 2006.

Armenian Business News

Russian Gas Giant Admits Interest In Armenian Power Plant
Article Posted on 17.01.2006
Source: www.armport.com
By Aza Babayan in Moscow

Russia’s Gazprom monopoly confirmed on Tuesday reports that it has offered not to double the price of natural gas supplied to Armenia in return for acquiring a big thermal power plant located in the central town of Hrazdan.

Denis Ignatiev, a spokesman for the state-controlled energy giant, told RFE/RL that this is one of the proposals made by the Russian side during the ongoing negotiations with the Armenian government. He said their acceptance would almost certainly spare Armenia the need to pay $110 per thousand cubic meters of Russian, or twice as more as it has paid until now.

Officials in Yerevan say Gazprom has agreed to delay the enforcement of the new tariff until April 1, pending the outcome of the negotiations. The presidents of the two countries are expected to try to reach a mutually acceptable solution when they meet in Moscow next week.

Ignatiev said Moscow has indeed offered to extend a multimillion-dollar loan to Armenia which would be spent on covering the extra cost of its gas. The loan would presumably be repaid with fresh handovers of Armenian industrial facilities, notably the Hrazdan plant which is incomplete but quite modern.

The idea was rejected by Prime Minister Andranik Markarian on Friday. “We could borrow from the West and international organizations on much more favorable terms,” he argued.

The power plant in question is currently being completed by a state-owned Iranian company that signed a $150 million investment agreement with the Armenian government last fall. It is due to generate electricity with Iranian gas that will be delivered to Armenia through a pipeline currently under construction. Energy Minister Armen Movsisian said on Monday that work on the first Armenian section of the pipeline is proceeding ahead of schedule and will likely be complete by the summer of 2007.

Russia, currently Armenia’s sole gas supplier, is believed to be uneasy about the project. According to the Gazprom spokesman, one of the Russian proposals deals with the planed Iranian gas deliveries. He refused to elaborate.

Russia’s presence in the Armenian energy sector is already pervasive, with Russian energy giants owning most of the country’s gas infrastructure, electricity distribution network, several hydro-electric stations and another big thermal plant located in Hrazdan. In addition, a state-owned Russian utility manages the finances of the nuclear power plant at Metsamor.

INDUSTRIAL OUTPUT TO AMOUNT TO 7% IN ARMENIA IN 2005:MINISTRY OF TRADE
Article Posted on 19.01.2006
Source: Arka News Agency 

YEREVAN, January 20. /ARKA/. According to the forecast by the RA Ministry of Trade and Economic Development, the volume industrial output in 2005 will amount to 7%, Minister of Trade and Economic Development Karen Chshmarityan told reporters. According to him, the growth rate of the Armenian industrial output amounted to 6.6% or AMD 489.2mln. He also said that among newly-established and modernized enterprises, "ArmenAl" foil rolling plant and Glass World Company (used to be Crystal plant in Byureghavan) were launched, along with "Prometey-ChemProm" Vanadzor Complex.


"ARMAVIA" AIRLINE GENERAL SPONSOR OF YEAR OF ARMENIA IN RUSSIA
Article Posted on 19.01.2006
Source: Arka News Agency 

YEREVAN, January 20. /ARKA/. "Armavia" Airline became the general sponsor of the Year of Armenia in Russia opening on January 22 in Moscow. The Airline Press Service reported that the national carrier made such a decision realizing the importance and significance of the Year of Armenia in Russia, and the social responsibility of large business before the society. It will cover considerable part of expenses on the participation of representatives of the country's culture, science and sports in the activities of the Year.

The Airline expresses confidence that its contribution will have a further positive impact on the development of friendly relations between Armenia and Russia, and the establishment of humanitarian and economic cooperation.

"Armavia" Airline was created on December 12, 1996. It possesses three European Airbus A-320, one YAK-42, one AN-24 and two TU-154 leased planes. In 2005 the Airline carried 500,100 passengers.

"Armavia" currently operates 60 weekly regular flights in 29 directions to 12 countries.


2,452 COMMERCIAL ORGANIZATIONS AND 7,212 INDIVIDUAL BUSINESSMEN REGISTERED IN ARMENIA IN 2005
Article Posted on 19.01.2006
Source: Arka News Agency 

YEREVAN, January 19. /ARKA/. Public Agency of Register for Legal Entities as part of the RA Ministry of Justice registered 2,452 commercial organizations and 7,212 individual businessmen in 2005, RA Minister of Justice David Harutyunyan told reporters. According to him, 724 non-profit organizations and 7 political parties were registered in 2005. The Minister said that 188 branches of legal entities and 19 offices, 63 mass media outlets, 3 religious organizations and 69 foundations were registered.

Arutyunyan pointed out that 14 unions of legal entities, 110 public non-profit organizations, and 15 condominiums were registered in Armenia in 2005.

The state budget was replenished with about AMD 118mln in 2005 against 118.8mln in 2004 as a result of implemented transactions. ($1 - 454.91).

FOREIGN INVESTMENTS IN ARMENIA $350-380 MILLION IN 2005
Article Posted on 19.01.2006
Source: Arka News Agency

YEREVAN, January 19. /ARKA/. According to the RA Ministry of Trade and Economic Development, foreign investments in Armenia are expected to reach $350-380 in 2005. RA Minister of Trade and Economic Development Karen Chshmarityan reported that an increase in foreign investments by about 27.9% can be recorded in all the economic sectors. He pointed out that in January-September 2005, an increase in foreign investments was recorded as well. If the funds directed to privatization are not taken into account, a 5% decrease can be said to have been recorded. "However, when the year's results are summed up, this figure is to increase due to investments made during the last quarter," Chshmarityan said. He stressed that the international structures give a high mark to Armenia's investment environment and liberalization.
In January-September 2005, foreign investments in Armenia totaled $225.7mln, with direct investments totaling $138.1mln, a 28.7% and 20.2% increase respectively compared to 2004.

$9.1 MILLION INVESTED BY IFC IN ARMENIA AS OF JANUARY 1, 2006
Article Posted on 19.01.2006
Source: Arka News Agency

YEREVAN, January 19. /ARKA/. Armenia became a shareholder and a member of the International Finance Corporation (IFC) in 1995. The Corporation began investing in the country in 2000. As of January 1, 2006, IFC has invested $9.1 million in 3 projects, which are Hotel Armenia, ACBA Leasing, and Armeconombank. IFC continues to explore the investment opportunities in partnership with strategic investors in both the financial and real sectors of the country and intends to do some more investments in 2006.

IFC keeps considering opportunities of investments either in financial or in real sector of Armenia's economy and intends to make new investments in 2006, the press release says.

In addition to the investment program, IFC has been providing technical assistance on corporate governance and advisory services for improvement of the investment climate and small and medium enterprise development.

IFC is the biggest international financing source for developing countries. Besides, the Corporation fulfils the function of laboratory for innovative market solutions on poverty reduction and environmental and social problems solution. The press release says that the market development will produce record results in 2006. However, some issues related to macroeconomic stability, corporate governance, environmental and social problems are still unsolved and remain on the agenda now.

"Emerging markets, as a whole, proved to be able to retain high growth and attract capital. Powerful dynamics is seen", the IFC Executive Vice-President Lars Thunell said, pointing out at the same time that some irregularity is visible in the growth and there are still many unsolved problems.

ARMAVIA MAKES FIRST REGULAR YEREVAN-TEL AVIV FLIGHT
Article posted 18.1.2006
Source: ARMINFO News Agency

ARMINFO. "Armavia" company made the first regular Yerevan-Tel Aviv flight, on January 15. Norayr Bellouyan, director of "Armavia," told correspondent of ARMINFO. The new flight will be carried out twice a week on Sundays and Thursdays.At present, "Armavia" works on opening new regular flight from Yerevan to Deli.
Source: ARMINFO News Agency,

"ARMAVIA" OPENS REGULAR FLIGHT YEREVAN-TEL AVIV
Article Posted on 19.01.2006
Source: Arka News Agency

YEREVAN, January 19. /ARKA/. Armenia's national air carriers "Armavia" has opened a regular flight with Israel, Yerevan-Tel Aviv-Yerevan. The flights will be carried out by A 320 liners on Thursday and Sunday. The flight lasts 2 hours and 15 minutes.
The "Armavia" press service reports that direct air communication with Israel is necessitated by the intensification of bilateral economic and humanitarian cooperation. In making the decision, "Armavia" also considered the wish of the Armenian Apostolic Church to contribute to pilgrimage. The new flight will allow Armenia's citizens to visit the center of origin of the three world religions, churches and historical monuments of various confessions, including the Armenian Apostolic Church. Also, many people in Israel wish to visit Armenia to get acquainted with the country's places of interest, history and culture, as well as to establish business contacts.

The "Armavia" air carrier was founded on December 12, 1996. Its flying-stock is composed of three A-320, one Yak-42, one An-24 and two leased TU-154.

In 2006, the air carrier intends to lease two Airbuses - A319 and A-330. "Armavia" has a 520-member staff.

In 2005, "Armavia" transported 500,100 passengers - 257,100 from Armenia and 243,000 to the country.

"Armavia" currently carries out daily flights in 29 directions of 12 countries

ARMENIAN BANKING SYSTEM'S ASSETS TO TOTAL AMD 510 BILLION IN 2006
Article Posted on 18.01.2006
Source: Arka News Agency 

YEREVAN, January 18. /ARKA/. In 2006, the Armenian banking system's assets are to increase by about AMD 81bln and total AMD 510bln. According to the CBA's forecasts incorporated in the Ramonetary policy program for 2006, assets are expected to increase due to an expected increase in liabilities and capital of the baking system.

According to the forecast, credit investments will constitute 55% (AMD 45bln), and 32% (AMD 26bln ) will be invested in government bonds.

In January-September 2005, the banking system's assets increased by AMD 53.1bln or by 14.6% and had totaled AMD 416.6bln by September 2005. Credit investments increased by 23.5%. The rates of increase in consumer crediting were maintained in 2005. Specifically, in January-September 2005 they increased by 38% or by AMD 15.1bln.

According to the CBA's preliminary program, during the 4th quarter the banking system's assets were to increase by AMD12.6bln, and crediting of economy by AMD 20bln.

ARMENIAN FOREIGN TRADE GREW 35 PERCENT
Article Posted on 19.01.2006
Source: Armenpress News Agency

Calendar- Community

February

18th February: Homenetmen Antranig 40th Anniversary Ball at the Sydney Hilton Ball Room, starting at 6.30pm. Tickets are on sale now at $150pp. For ticket sales please contact Lee on 0404 34 32 34.

24th February: Homenetmen Antranig 40th Anniversary Concert starring Berj Berkerian, starting at 8.00pm. Concert is at North Sydney Leagues Club, and tickets cost $25 for students and $35 for adults. For ticket sales please contact Markar on 0413 171 874.

March

10th March: Lusine Kosyan CD Launch Party at North Sydney Leagues Club, starting 8.00pm. Entry is $40 and includes light dinner and one CD per family. For tickets call: Lusine on 02 8824 6822 or Roger on 0411 078 767.

11th March: Armenian Sydney Dance Company Dinner Dance at Manly Pacific Hotel (Novotel) starting at 7.00pm. Tickets cost $95 and include live band (Lusine Kosyan), floor show and 3 course dinner/drinks. For ticket sales and enquiries please contact:
Zepur Alexanian 9888 7759 / 0401 671 753
Nora Hekimian 9888 9616 / 0425 330 803
Maral Hovagimian 9888 3973 / 0415 380 772
Shakeh Aghamalian 9975 6040 / 0402 761 209

11th, 12th, 18th and 19th March: Taline and Friends Concert. Tickets $25 for adults and children. For enquiries please call:
Sirarpy Banbekian (Fairfield) 0411350100
Natalie Chanelian (Ryde) 0404036929
Maida Tateossian (Chatswood) 0410699058
Julie Zilifian (Frenchs Forest) 0418445150

April

29th April: Ara Gevorgian and Maestro Henrik Anassian head the largest Armenian Show ever to be staged in Australia with over 100 dancers and performers. Tickets start at $50pp, and the event will be staged at the State Sports Centre, Sydney Olympic Park. For bookings please call: