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Qube CEO Paul Digney: IR settings are retrograde

Paul Digney says there is virtually nothing in the current workplace relations settings to promote productivity.

Qube CEO Paul Digney.
Qube CEO Paul Digney.

Economy

How would you rate the momentum of the Australian economy as we head into 2025? Official forecasts have Australia trimming interest rates from the first half of calendar 2025, is that consistent with your view? What are you seeing around inflation in your own business?

As a major part of the import and export supply chain for a number of industries, we have a front-row seat when it comes to the Australian economy. Despite the uncertain geopolitical environment and some persistent inflationary pressures in key sectors, we remain cautiously optimistic heading into 2025.

Our expectation remains that the Reserve Bank will ease interest rates in the first half of the calendar year, but with an election on the horizon, spending restraint on both sides of the ledger will be important.

Outlook

What excites you heading into 2025? Are you likely to increase, hold steady, or trim your investment spend?

Throughout our 17-year journey, acquisitions have been key drivers of the growth of our business. In 2024, we purchased a number of businesses in both Australia and New Zealand and, as we continue the integration journey, I am excited by the possibilities they will unlock for us into new markets, customers and services.

Organic growth is also a big area of focus and in 2024 we launched our grain trading business. It is performing extremely well amidst a strong grain season and I am looking forward to seeing where we can take that in 2025.

We have a strong investment pipeline but shareholder value is a paramount consideration in any investment decision. We will continue to be opportunistic, where we think there’s value to be found, and to make prudent decisions that will ultimately deliver returns for investors.

Reform

As we move into an election year, in your mind, what’s the single biggest lever that can/should be used to lift Australia’s competitiveness or productivity? This could be across any area from labour market, tax reform, training or other areas to encourage investment.

There is virtually nothing in the current workplace relations settings to promote productivity and it is almost impossible to negotiate productivity offsets as part of wage negotiations. That’s a seriously retrograde step and it will become more problematic as more and more EA’s come up for renegotiation.

Restoring some balance and refocusing on unlocking productivity as a driver of our economy and our future prosperity must be high on the agenda as we head into the election.

Geopolitics

Will a Donald Trump presidency have a potential impact on your business or sector (tariffs or streamlined regulation)? Does geopolitics drive a bigger part of your decision-making?

Until we see the scope and scale of proposed tariffs it’s really impossible to say what the impacts might be. However, just as our diversification and exposure to a range of international markets and commodities enabled us to navigate the impacts of China’s import bans and tariffs, I am confident that Qube will similarly be able to deal with changes in the US’s approach and support our customers in the process.

People

Has your organisation’s approach to flexible working – including working from home – evolved during the year. Is this likely to change further into 2025?

Most of our workforce are in operational roles. Working from home is not really an option for a train driver, a truckie or a stevedore whose job is to keep supply chains moving every day.

If they don’t turn up for work, the economy stops.

Technology

Where is your organisation along the AI journey – is it in the developmental stage, or are you now using the technology at scale across your business? If so, are benefits matching the promise?

Innovation and technology are a key competitive advantage for Qube and we’ve been working with AI for some time to improve safety, optimise processes, labour and staff allocation and to help us redefine supply chain dynamics.

Properly managed, integrated and controlled, we can see a range of potential applications for AI across our supply chain, building on existing uses like in cabin monitoring or on site to enhance safety and security or in workflow optimisation.

Read related topics:CEO Survey

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Original URL: https://www.theaustralian.com.au/business/companies/qube-ceo-paul-digney-ir-settings-are-retrograde/news-story/c3077faed1558aba377c755511abb830