Alumni News October 2005

Faculty of Economics and Commerce October 2005

alumninews

In this issue Dean’s Update 2

Young Alumni Event 3

Commerce Graduates 4

Alumni Scholarship 5

Alumni Dinner 6

Global Leaders 7

Consumer Culture 8

Aussie Wealth 9

What is Convocation? 10

Adding Value 11

Events Calendar 12

The study by Macquarie University researchers has been hailed by The Australian’s HigherEducation Supplement as a “more reliableranking of departments”. It covers both individualacademic economists and departments andclaims to be the first ranking to take into account the advantage of department size.

The University of Melbourne outperformed all theother Australian and New Zealand universitiesfor total output of publications and also after an adjustment for department size.

Economists who feature in the researchers’ ‘Hall of Fame’ are Professor John Creedy, Professor Jeff Borland, Professor Stephen King, Associate

Professor Nilss Olekalns, Professor VanceMartin, Professor Peter Bardesley, Professor Ian McDonald and Professor Guay C Lim.Professor Creedy clearly led the individualrankings on the number of ENONLIT databasejournal articles and on perception of journalquality between 1988 and 2002. ProfessorRabee Tourky was well in front on citationsbetween 1996 and 2002.

Professor Margaret Abernethy congratulated the Department on its excellent performance in the rankings. “This independent recognition of the Department and its staff is well-earned,” she said.

Economics Tops University RankingsThe Department of Economics has topped a new study of economics departments inAustralian and New Zealand universities. Seven University of Melbourne economists – the most from any university in the study have been identified by researchers as ‘star performers’ over the period 1988 to 2002 and named in a ‘Hall of Fame’.

Welcome to the second edition of Alumni News for 2005.

Since our last newsletter in April, we havehosted two alumni events. The first in May, with Simon Hammond from SEECommunications, was held in the MelbourneCBD and sponsored by KPMG. Simon spoke

about the significance of brands and their reach into popular culture.We also had the alumni dinner directly after the Annual GeneralMeeting in July. Professor Ross Williams, former Dean of the Facultyof Economics and Commerce, spoke about the Goods & Services Taxand Commonwealth Grants Commission, of which he is a member.

The Faculty also sponsored three graduate career events earlier thisyear in Shanghai, Hong Kong, and Bangkok with representatives from industry, finance, and the accounting professions. The Facultywas also given exposure at University of Melbourne alumni andfriends events in Brazil, Mexico, Colombia, Peru and Chile.

Reports about the events appear in this newsletter, as do features on upcoming functions, including a 20 year reunion for those former students that started Commerce in 1985. The Alumni Society and Faculty can also assist you if you would like to arrange a reunion for your own Commerce year.

I hope to see you at one of the upcoming functions! If you haveanything you would like to contribute to the the Society, pleasecontact [email protected] or ph 8344 1817.

Steven Zigomanis, President, UMCAS

President’s Report

Alumni news Sept05 d3 23/9/05 10:24 AM Page 1

Alumni News 32 Faculty of Economics and Commerce

With the Vice-Chancellor’s support, we willbe appointing a high profile internationaladvisory board, launching a majorfundraising campaign, and hosting a moreintegrated speakers program. We will also be seeking to build on our existingindustry mentor scheme. Significantly, we will be laying the foundations of ournew $100m+ Faculty Building in BerkeleyStreet (diagonally opposite the LawSchool). The building will set a newstandard in the region for a businessfaculty, reflecting our vision of a modernstudent-centred learning environment. Aswe reach out to our alumni in more than75 countries, we hope that you will join usin making the Faculty one of the world’sgreat centres of teaching and research ineconomics and commerce, and therebyhave an impact on the individuals,organisations, economies and regions we indirectly seek to serve.

We have had a very full calendar over thelast six months. Our two Nobel Laureatesvisited for the first time. Sir James Mirrleesarrived for a two month visit in March andSir Clive Granger arrived in April. Bothwere kept busy with various teaching andresearch activities and are enjoying theirtime in the Faculty and adding significantvalue. While at the University they areresidents at Trinity College. We aredelighted to be able to strengthen our

links with Trinity in this way. ProfessorGranger presented a most interestinglecture on the “Economics of Peace”which attracted a great deal of interestfrom our students, staff in the Universityand those from outside the Universitywhen he visited us again in September. We have had similar interest from otherpublic lectures given by eminent scholarsfrom around the world.

Particularly interesting was the DowningLecture for 2005, given by ProfessorMatthew Rabin (University ofCalifornia, Berkeley) on the Economics of Immediate Gratification.

The Alumni Annual Dinner coincided withthe unveiling of the Ross Williams portrait.We believe that the artist, Evert Ploeg,captured the essence of Ross and theportrait now hangs in the Ross WilliamsConference Room. This is where theFaculty Executive meets monthly – soRoss now looks down on us as we make the decisions that affect the futuredirection of the Faculty. Several other keyfunctions in the last few months includedthe Dean’s Awards night where werecognise the excellence achieved by our students. At a separate event we also recognised the excellence of our high quality teaching and research staff.

In August of this year Professor RobertGregory, who graduated from our Facultyin 1961, and is the most eminent laboureconomist in Australia was awarded anhonorary degree of Doctor of Commerce.

Much of my time in the first six months of the year is tied up with the planning and budgeting process for 2006. Deansand senior members of the Universityadministration meet in June of every yearto decide the budget and the operationalplan. The budget for the University in thenext year will be very tight given that thegrowth in fee income has plateauedcoupled with some of the regulatorychanges imposed by the FederalGovernment, the closure of MelbourneUniversity Private and the decision to exit from the provision of VocationalEducational Programs provided by theInstitute of Land, Food and Resources.The Faculty, however, is financially soundand fortunately able to implement manynew initiatives that will enable us tocontinue to attract the very best studentsand staff, undertake research thataddresses important economic and social problems and develop new revenue streams to fund them. I lookforward to your continued support

Professor Margaret A. AbernethyDean

Dean’s UpdateThe Faculty continues to grow and expand. With an increasinglydiverse range of communities, and a vision of becoming one of the world’s leading business faculties, we have decided to build our external relations capability to ensure that we can more meaningfully interact with our constituencies. Next year will be a big year for development in the Faculty.

George (BCom 1985) specialised in economics in his Bachelor of Commerce and spent 11 years in the Canberra press gallery before returning to Melbourne as a senior writer with The Australian.

He won the ‘2003 Melbourne Press Club Quill Award’ for bestcolumnist, where the judges said ‘His analysis of social andeconomic trends are anchored in the “real world” and whetherwriting about the housing boom or the war in Iraq, his columnsare well researched and leave the reader interested and at times entertained’.

George published a book in December 2003, Faultlines: race,work, and the politics of changing Australia, which receivedapproval from colleagues and critics alike. Writing for the SydneyMorning Herald, Bruce Elder said George’s work was ‘clear andclean. His arguments are thoughtful and intelligent. This is notsome dreary academic tome but rather the work of a goodjournalist, with access to focus groups and official statistics,looking carefully at the way Australia has changed since 1996.’

In Faultlines George explores the seemingly contradictorytendencies in Australia’s political and cultural make up in regards to immigration, sex, race, the city and the bush. He investigates the complex attitudes of Australians using amixture of his own anecdotes – being the child of a migrant family – with statistics and data from the most recent census and major political party polls.

George balances his time between being a senior writer for The Australian, writing a new novel and contributing toindependent political commentary.

George Megalogenis will be the feature speaker at the YoungAlumni Event hosted by PricewaterhouseCoopers where he will discuss how the changes in economic journalism haveimpacted on business and the implications of our degrees being outpaced by social and technological change. All alumni and friends are invited to attend.

Edwin Flack RoomPricewaterhouseCoopersFreshwater Place2 Southbank BoulevardSouthbankTuesday October 25, 6-8 pmCost: Free but RSVP essentialRSVP to Dennis Lee on: [email protected]

More information: www.ecom.unimelb.edu.au/faculty/news.html

Young Alumni EventTechnological and Social Change: Is your degree still relevant?Journalist and author George Megalogenis will be the featurespeaker at the Commerce Young Alumni event on October 25th2005. George is an award winning senior writer for The Australianand well known for his intelligent and lively insight into Australianbusiness and social culture.



With the Vice-Chancellor’s support, we willbe appointing a high profile internationaladvisory board, launching a majorfundraising campaign, and hosting a moreintegrated speakers program. We will also be seeking to build on our existingindustry mentor scheme. Significantly, we will be laying the foundations of ournew $100m+ Faculty Building in BerkeleyStreet (diagonally opposite the LawSchool). The building will set a newstandard in the region for a businessfaculty, reflecting our vision of a modernstudent-centred learning environment. Aswe reach out to our alumni in more than75 countries, we hope that you will join usin making the Faculty one of the world’sgreat centres of teaching and research ineconomics and commerce, and therebyhave an impact on the individuals,organisations, economies and regions we indirectly seek to serve.

We have had a very full calendar over thelast six months. Our two Nobel Laureatesvisited for the first time. Sir James Mirrleesarrived for a two month visit in March andSir Clive Granger arrived in April. Bothwere kept busy with various teaching andresearch activities and are enjoying theirtime in the Faculty and adding significantvalue. While at the University they areresidents at Trinity College. We aredelighted to be able to strengthen our

links with Trinity in this way. ProfessorGranger presented a most interestinglecture on the “Economics of Peace”which attracted a great deal of interestfrom our students, staff in the Universityand those from outside the Universitywhen he visited us again in September. We have had similar interest from otherpublic lectures given by eminent scholarsfrom around the world.

Particularly interesting was the DowningLecture for 2005, given by ProfessorMatthew Rabin (University ofCalifornia, Berkeley) on the Economics of Immediate Gratification.

The Alumni Annual Dinner coincided withthe unveiling of the Ross Williams portrait.We believe that the artist, Evert Ploeg,captured the essence of Ross and theportrait now hangs in the Ross WilliamsConference Room. This is where theFaculty Executive meets monthly – soRoss now looks down on us as we make the decisions that affect the futuredirection of the Faculty. Several other keyfunctions in the last few months includedthe Dean’s Awards night where werecognise the excellence achieved by our students. At a separate event we also recognised the excellence of our high quality teaching and research staff.

In August of this year Professor RobertGregory, who graduated from our Facultyin 1961, and is the most eminent laboureconomist in Australia was awarded anhonorary degree of Doctor of Commerce.

Much of my time in the first six months of the year is tied up with the planning and budgeting process for 2006. Deansand senior members of the Universityadministration meet in June of every yearto decide the budget and the operationalplan. The budget for the University in thenext year will be very tight given that thegrowth in fee income has plateauedcoupled with some of the regulatorychanges imposed by the FederalGovernment, the closure of MelbourneUniversity Private and the decision to exit from the provision of VocationalEducational Programs provided by theInstitute of Land, Food and Resources.The Faculty, however, is financially soundand fortunately able to implement manynew initiatives that will enable us tocontinue to attract the very best studentsand staff, undertake research thataddresses important economic and social problems and develop new revenue streams to fund them. I lookforward to your continued support

Professor Margaret A. AbernethyDean

Dean’s UpdateThe Faculty continues to grow and expand. With an increasinglydiverse range of communities, and a vision of becoming one of the world’s leading business faculties, we have decided to build our external relations capability to ensure that we can more meaningfully interact with our constituencies. Next year will be a big year for development in the Faculty.

George (BCom 1985) specialised in economics in his Bachelor of Commerce and spent 11 years in the Canberra press gallery before returning to Melbourne as a senior writer with The Australian.

He won the ‘2003 Melbourne Press Club Quill Award’ for bestcolumnist, where the judges said ‘His analysis of social andeconomic trends are anchored in the “real world” and whetherwriting about the housing boom or the war in Iraq, his columnsare well researched and leave the reader interested and at times entertained’.

George published a book in December 2003, Faultlines: race,work, and the politics of changing Australia, which receivedapproval from colleagues and critics alike. Writing for the SydneyMorning Herald, Bruce Elder said George’s work was ‘clear andclean. His arguments are thoughtful and intelligent. This is notsome dreary academic tome but rather the work of a goodjournalist, with access to focus groups and official statistics,looking carefully at the way Australia has changed since 1996.’

In Faultlines George explores the seemingly contradictorytendencies in Australia’s political and cultural make up in regards to immigration, sex, race, the city and the bush. He investigates the complex attitudes of Australians using amixture of his own anecdotes – being the child of a migrant family – with statistics and data from the most recent census and major political party polls.

George balances his time between being a senior writer for The Australian, writing a new novel and contributing toindependent political commentary.

George Megalogenis will be the feature speaker at the YoungAlumni Event hosted by PricewaterhouseCoopers where he will discuss how the changes in economic journalism haveimpacted on business and the implications of our degrees being outpaced by social and technological change. All alumni and friends are invited to attend.

Edwin Flack RoomPricewaterhouseCoopersFreshwater Place2 Southbank BoulevardSouthbankTuesday October 25, 6-8 pmCost: Free but RSVP essentialRSVP to Dennis Lee on: [email protected]

More information: www.ecom.unimelb.edu.au/faculty/news.html

Young Alumni EventTechnological and Social Change: Is your degree still relevant?Journalist and author George Megalogenis will be the featurespeaker at the Commerce Young Alumni event on October 25th2005. George is an award winning senior writer for The Australianand well known for his intelligent and lively insight into Australianbusiness and social culture.



Alumni Scholarshipawarded to Sophie FerrisThis year the Commerce Alumni Society has once again provided a $2,000 scholarship to a final yearstudent to assist in funding completion of theirBachelor of Commerce degree. The scholarship is provided on behalf of Commerce Alumni, and is the key reason for the Society needing to raise funds via donations from our alumni community.

The successful candidate for the Commerce Alumni Scholarship in 2005 is Sophie Ferris. Sophie displayed the required balancebetween excellent academic results and community service. As hasbeen the case in recent years, the quality of undergraduates applyingfor the scholarship has been outstanding. The selection committeecomprised of Deputy Dean, Professor Ian McDonald, Dr JenniferGrafton (Department of Accounting and Business InformationSystems) and Commerce Alumni Committee member Ross Cameron.

Sophie (pictured above right) who is in her final year of a Bachelor of Commerce/Bachelor of Science combined degree is presentlyabroad on exchange at the University of Commerce ‘Luigi Bocconi’. Sophie has three times been listed on the Dean’s Honours List for the Bachelor of Commerce and was a participant in the University Student Ambassador Leadership Program in 2004.

The scholarship is supported entirely by the generous donations of alumni. Donations also go towards subsidising alumni events. Anyone wishing to support the scholarship can do so by visiting www.ecom.unimelb.edu.au/faculty/business/alumni.html or telephoning Ms Susan McPharlin on 03 8344 2167.

Fantastic Results for Commerce GraduatesOnce again University of Melbourne Bachelor of Commerce graduates have proventheir degrees are highly prized in the professional arena.

Recent results of the Graduate Destination Survey (2004) show 91% of Melbourne commerce Bachelor graduates* were employedfull time within months of graduation, of those available for fulltime work. These employment statistics for commerce graduates have been consistently higher than the average for all otherinstitutions in Australia.

Melbourne Bachelor of Commerce graduates working in Australiareported a median annual salary of $40,000, also a figure higher thanthat reported nationally for business studies/accounting/economicsgraduates which was $35,000. Melbourne postgraduates reported an annual median salary of $68,250.

The Graduation Destination Survey also illustrated how rewardinga career post a Melbourne commerce degree can be, with 93% of

first year Bachelor graduates and 91% of postgraduates reportingthey were very satisfied or satisfied with their current occupation.

The relevance of the degree was also demonstrated as 92% of under-graduate respondents stated they were working in an area eitherdirectly or related or somewhat related to their course.

The Graduate Destination Survey is conducted by each Australiantertiary institution under the coordination of the Graduate CareersCouncil of Australia. The aim of the survey is to evaluate what work,further study or other activities recent graduates are participating inon the 30 of April each year

For more information on the Graduate Destination Survey visit:www.upo.unimelb.edu.au/upo_EC.html

*Includes combined degree graduatesGraduate Destination Survey, 2004, Careers and Employment, University of Melbourne

Unveiling of ProfessorRoss Williams’ PortraitOver eighty staff, colleagues and friends attended theunveiling of Professor Ross Williams’ portrait on the evening of Thursday the 28 July at the WoodwardCentre.

The Dean, Professor Margaret Abernethy unveiled theportrait, imparting a few anecdotes about Ross’ manycontributions to the Faculty during his time as Dean.

Ross thanked the artist, Evert Ploeg who had flown infrom Sydney for the event, making special note of Evertand his partner’s ‘wonderful hospitality’ while he spentmany hours in their studio for sittings.

The Professor Ross Williams portrait will be located in the Ross Williams room of the Babel Building at theUniversity of Melbourne.



Alumni Scholarshipawarded to Sophie FerrisThis year the Commerce Alumni Society has once again provided a $2,000 scholarship to a final yearstudent to assist in funding completion of theirBachelor of Commerce degree. The scholarship is provided on behalf of Commerce Alumni, and is the key reason for the Society needing to raise funds via donations from our alumni community.

The successful candidate for the Commerce Alumni Scholarship in 2005 is Sophie Ferris. Sophie displayed the required balancebetween excellent academic results and community service. As hasbeen the case in recent years, the quality of undergraduates applyingfor the scholarship has been outstanding. The selection committeecomprised of Deputy Dean, Professor Ian McDonald, Dr JenniferGrafton (Department of Accounting and Business InformationSystems) and Commerce Alumni Committee member Ross Cameron.

Sophie (pictured above right) who is in her final year of a Bachelor of Commerce/Bachelor of Science combined degree is presentlyabroad on exchange at the University of Commerce ‘Luigi Bocconi’. Sophie has three times been listed on the Dean’s Honours List for the Bachelor of Commerce and was a participant in the University Student Ambassador Leadership Program in 2004.

The scholarship is supported entirely by the generous donations of alumni. Donations also go towards subsidising alumni events. Anyone wishing to support the scholarship can do so by visiting www.ecom.unimelb.edu.au/faculty/business/alumni.html or telephoning Ms Susan McPharlin on 03 8344 2167.

Fantastic Results for Commerce GraduatesOnce again University of Melbourne Bachelor of Commerce graduates have proventheir degrees are highly prized in the professional arena.

Recent results of the Graduate Destination Survey (2004) show 91% of Melbourne commerce Bachelor graduates* were employedfull time within months of graduation, of those available for fulltime work. These employment statistics for commerce graduates have been consistently higher than the average for all otherinstitutions in Australia.

Melbourne Bachelor of Commerce graduates working in Australiareported a median annual salary of $40,000, also a figure higher thanthat reported nationally for business studies/accounting/economicsgraduates which was $35,000. Melbourne postgraduates reported an annual median salary of $68,250.

The Graduation Destination Survey also illustrated how rewardinga career post a Melbourne commerce degree can be, with 93% of

first year Bachelor graduates and 91% of postgraduates reportingthey were very satisfied or satisfied with their current occupation.

The relevance of the degree was also demonstrated as 92% of under-graduate respondents stated they were working in an area eitherdirectly or related or somewhat related to their course.

The Graduate Destination Survey is conducted by each Australiantertiary institution under the coordination of the Graduate CareersCouncil of Australia. The aim of the survey is to evaluate what work,further study or other activities recent graduates are participating inon the 30 of April each year

For more information on the Graduate Destination Survey visit:www.upo.unimelb.edu.au/upo_EC.html

*Includes combined degree graduatesGraduate Destination Survey, 2004, Careers and Employment, University of Melbourne

Unveiling of ProfessorRoss Williams’ PortraitOver eighty staff, colleagues and friends attended theunveiling of Professor Ross Williams’ portrait on the evening of Thursday the 28 July at the WoodwardCentre.

The Dean, Professor Margaret Abernethy unveiled theportrait, imparting a few anecdotes about Ross’ manycontributions to the Faculty during his time as Dean.

Ross thanked the artist, Evert Ploeg who had flown infrom Sydney for the event, making special note of Evertand his partner’s ‘wonderful hospitality’ while he spentmany hours in their studio for sittings.

The Professor Ross Williams portrait will be located in the Ross Williams room of the Babel Building at theUniversity of Melbourne.



Professor Ross Williams delved into thedistribution methodologies of GST revenue at thisyear’s Economics and Commerce Alumni Dinner.

The 2005 Economics and Commerce Dinner was attended byapproximately 60 people at the stunning Woodward ConferenceCentre on July 28 where Professor Ross Williams provided anenlightening presentation about Australia’s Commonwealth GrantsCommission, which is the body that has statutory responsibility for recommending how GST revenue should be divided amongst the states.

Since the introduction of the GST, the total amount of fundingavailable for distribution through the Grants Commission is fixed and essentially, is a zero sum game for the states as one state can only gain at the expense of another.

The current methodology for allocation, phased in after 1981, involves drawing up a hypothetical budget for each state, based

on national averages or standards, for what the state could raise inrevenue, and what it would need to spend on services. The differencebetween the standardised revenue and expenses for each state thendetermines the states’ needs.

To illustrate the process, Professor Williams walked the audiencethrough examples of revenue and expenditure equalisation by lookingat the redistribution of payroll tax receipts across states and theimpact of allowances for the higher costs associated with schooling for indigenous children in remote areas. Professor Williams also drew attention to a few of the contentious issues associated withredistribution such as the reallocation of revenue from miningactivities which WA argues, for example, reduces the incentive for states to develop new mines.

Professor Williams also traced the evolution of the GrantsCommission from 1933, highlighting the key roles played by former faculty members such as Professors Giblin, Wood, Prest,Mathews and Sir Alexander Fitzgerald.

Where does your GST go?

AlumniThe Financial Management Association of Australia (FMAA) would like to extend an invitation to past Melbourne committee and sub-committee members to join the FMAA Alumni.

If you are a past committee or sub-committee member, could you please contact Vivien Chan at [email protected] or ring on 8344 4981.For more information, please visit our website at www.fmaa.com.au/melbourne.

We look forward to hearing from you.

Professor John Freebairn talking with alumni Professor Ross Williams talking with Ian Marshman and Doctor David Runia

Melbourne students are Global LeadersTwo University of Melbourne Commerce undergraduates are among eight Australians in an international group of 100 outstanding students selected as 2005 Global Leaders by the US-based Goldman Sachs Foundation.

The students, Mr Phyl Georgiou (third-yearCommerce/Actuarial Studies) and MrSimon Pitt (second-year Commerce/Law),pictured above, both residents of TrinityCollege, received their awards in Sydneyrecently.

Mr Georgiou was also one of only fourGlobal Leaders from Australia selected to travel to New York last month to join 46 others in meeting prominent leadersfrom the private, public and non-profitsectors to learn more about leadership and global issues.

Global Leaders are selected for theirdemonstrated ability to address socialproblems, either globally or in their localcommunities, as well as for theiroutstanding academic achievements.

Mr Georgiou, for example, instigated and is leading a team of Trinity students whohave raised funds for, and established, the Carlton Youth Soccer Club to helpyoung African refugees adjust to Australiansociety. Part of the funding for the projectwas provided by a Trinity CollegeCommunity Service grant.

He reports the one-week program in New York was “a great opportunity for me to reflect on how I can best preparemyself in the coming years to become an improved leader”.

Adapted from an article by Paul Richiardi,UniNews, 8 August 2005



Professor Ross Williams delved into thedistribution methodologies of GST revenue at thisyear’s Economics and Commerce Alumni Dinner.

The 2005 Economics and Commerce Dinner was attended byapproximately 60 people at the stunning Woodward ConferenceCentre on July 28 where Professor Ross Williams provided anenlightening presentation about Australia’s Commonwealth GrantsCommission, which is the body that has statutory responsibility for recommending how GST revenue should be divided amongst the states.

Since the introduction of the GST, the total amount of fundingavailable for distribution through the Grants Commission is fixed and essentially, is a zero sum game for the states as one state can only gain at the expense of another.

The current methodology for allocation, phased in after 1981, involves drawing up a hypothetical budget for each state, based

on national averages or standards, for what the state could raise inrevenue, and what it would need to spend on services. The differencebetween the standardised revenue and expenses for each state thendetermines the states’ needs.

To illustrate the process, Professor Williams walked the audiencethrough examples of revenue and expenditure equalisation by lookingat the redistribution of payroll tax receipts across states and theimpact of allowances for the higher costs associated with schooling for indigenous children in remote areas. Professor Williams also drew attention to a few of the contentious issues associated withredistribution such as the reallocation of revenue from miningactivities which WA argues, for example, reduces the incentive for states to develop new mines.

Professor Williams also traced the evolution of the GrantsCommission from 1933, highlighting the key roles played by former faculty members such as Professors Giblin, Wood, Prest,Mathews and Sir Alexander Fitzgerald.

Where does your GST go?

AlumniThe Financial Management Association of Australia (FMAA) would like to extend an invitation to past Melbourne committee and sub-committee members to join the FMAA Alumni.

If you are a past committee or sub-committee member, could you please contact Vivien Chan at [email protected] or ring on 8344 4981.For more information, please visit our website at www.fmaa.com.au/melbourne.

We look forward to hearing from you.

Professor John Freebairn talking with alumni Professor Ross Williams talking with Ian Marshman and Doctor David Runia

Melbourne students are Global LeadersTwo University of Melbourne Commerce undergraduates are among eight Australians in an international group of 100 outstanding students selected as 2005 Global Leaders by the US-based Goldman Sachs Foundation.

The students, Mr Phyl Georgiou (third-yearCommerce/Actuarial Studies) and MrSimon Pitt (second-year Commerce/Law),pictured above, both residents of TrinityCollege, received their awards in Sydneyrecently.

Mr Georgiou was also one of only fourGlobal Leaders from Australia selected to travel to New York last month to join 46 others in meeting prominent leadersfrom the private, public and non-profitsectors to learn more about leadership and global issues.

Global Leaders are selected for theirdemonstrated ability to address socialproblems, either globally or in their localcommunities, as well as for theiroutstanding academic achievements.

Mr Georgiou, for example, instigated and is leading a team of Trinity students whohave raised funds for, and established, the Carlton Youth Soccer Club to helpyoung African refugees adjust to Australiansociety. Part of the funding for the projectwas provided by a Trinity CollegeCommunity Service grant.

He reports the one-week program in New York was “a great opportunity for me to reflect on how I can best preparemyself in the coming years to become an improved leader”.

Adapted from an article by Paul Richiardi,UniNews, 8 August 2005



Consumer culture generates longer working hoursOur consumer culture is forcing Australians to work longer hours in order to manage their debts and sustainhigh levels of consumption, according to a study by University of Melbourne researchers at the MelbourneInstitute of Applied Economic and Social Research.

Researchers uncover the inequalities ofAussie wealth How much wealth does the typical Aussie family have? Researchers at the Melbourne Institute of Applied Economic and Social Research havediscovered that the distribution of wealth amongst Australians is veryunequal. They have released their findings with some remarkable results.Conducted as part of the HILDA Survey, Melbourne Institute researchersBruce Headey, Gary Marks and Mark Wooden have documented thedistribution of household wealth in Australia and examined itsrelationships with demographic and social factors. Not since World War I has there been a survey on individual wealth holdings in Australia.

The studies find that the bottom half of the population owned less than ten per centof total household net worth, while thewealthiest ten per cent owned 45 per cent of total household wealth.

Referring to findings that property is thelargest component of assets, Dr Headey,Principal Fellow at the Melbourne Institute,said ‘housing is not the only game in town.’Many Australians end up with no cash whenthey retire because they have locked it intotheir house.

Dr Headey also pointed out that wealth is heavily skewed with age. ‘Wealth is notclosely linked to a persons’ socioeconomicbackground’ he said.

Other findings in the studies include:

• The largest component of both assets and debt is property.

• Wealth is strongly associated with age.The median wealth of 55-65 year-oldswas $444,000 compared to $8,000among 18 to 24 year olds.

• University education is associated withsubstantially higher levels of wealth.

• Singles and single-parent householdshave the lowest levels of wealth.

• Pensioners are well short of the wealththat would enable them to live a‘comfortable lifestyle’, as determined bythe Association of Superannuation Fundsof Australia.

• Even when taking into account agedifferences, marriage and to a lesserextent de facto relationships, areassociated with greater wealth.

• Smokers are less wealthy.

• Drinkers are wealthier, unless they are heavy drinkers.

‘These findings are significant to all Australians’, Professor Mark Wooden said.

Whilst studies have been conducted byfinancial institutions in the past, theinformation collected through the HILDASurvey is from individuals representing theAustralian population. Financial institutionsurveys cannot say how wealth isdistributed, which is what these findingsfrom the HILDA set accomplish.

Using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the paper shows that not only is there a significant proportion (22 per cent) of employed Australiansworking long hours – defined as regularly working 50 or morehours each week – but that for more than half of these people, it is a persistent phenomenon.

Those working longer hours are generally ‘ideal workers’ –managers and professionals with high levels of education,promotion opportunities, and flexible work hour arrangements.

Workers driving the positive association between professionaloccupations and persistently long hours include teachers,academics, lawyers, broadcasters, actors, journalists and pilots.

Long hours were also associated with several non-managerialand non-professional occupations, including road and railtransport drivers, suggesting long hours are not alwaysconnected to the ‘ideal worker’ norm.

“It is startling how many employees are working such long hoursyear after year just to help pay off their debts,” said ProfessorMark Wooden, Deputy Director of the Melbourne Institute andone of the study’s authors.

“A clear implication of the research is that reclaiming leisure and family time will require many households cutting back on expenditure.”

To find out more about the HILDA Survey visit:www.melbourneinstitute.com/hilda



Consumer culture generates longer working hoursOur consumer culture is forcing Australians to work longer hours in order to manage their debts and sustainhigh levels of consumption, according to a study by University of Melbourne researchers at the MelbourneInstitute of Applied Economic and Social Research.

Researchers uncover the inequalities ofAussie wealth How much wealth does the typical Aussie family have? Researchers at the Melbourne Institute of Applied Economic and Social Research havediscovered that the distribution of wealth amongst Australians is veryunequal. They have released their findings with some remarkable results.Conducted as part of the HILDA Survey, Melbourne Institute researchersBruce Headey, Gary Marks and Mark Wooden have documented thedistribution of household wealth in Australia and examined itsrelationships with demographic and social factors. Not since World War I has there been a survey on individual wealth holdings in Australia.

The studies find that the bottom half of the population owned less than ten per centof total household net worth, while thewealthiest ten per cent owned 45 per cent of total household wealth.

Referring to findings that property is thelargest component of assets, Dr Headey,Principal Fellow at the Melbourne Institute,said ‘housing is not the only game in town.’Many Australians end up with no cash whenthey retire because they have locked it intotheir house.

Dr Headey also pointed out that wealth is heavily skewed with age. ‘Wealth is notclosely linked to a persons’ socioeconomicbackground’ he said.

Other findings in the studies include:

• The largest component of both assets and debt is property.

• Wealth is strongly associated with age.The median wealth of 55-65 year-oldswas $444,000 compared to $8,000among 18 to 24 year olds.

• University education is associated withsubstantially higher levels of wealth.

• Singles and single-parent householdshave the lowest levels of wealth.

• Pensioners are well short of the wealththat would enable them to live a‘comfortable lifestyle’, as determined bythe Association of Superannuation Fundsof Australia.

• Even when taking into account agedifferences, marriage and to a lesserextent de facto relationships, areassociated with greater wealth.

• Smokers are less wealthy.

• Drinkers are wealthier, unless they are heavy drinkers.

‘These findings are significant to all Australians’, Professor Mark Wooden said.

Whilst studies have been conducted byfinancial institutions in the past, theinformation collected through the HILDASurvey is from individuals representing theAustralian population. Financial institutionsurveys cannot say how wealth isdistributed, which is what these findingsfrom the HILDA set accomplish.

Using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the paper shows that not only is there a significant proportion (22 per cent) of employed Australiansworking long hours – defined as regularly working 50 or morehours each week – but that for more than half of these people, it is a persistent phenomenon.

Those working longer hours are generally ‘ideal workers’ –managers and professionals with high levels of education,promotion opportunities, and flexible work hour arrangements.

Workers driving the positive association between professionaloccupations and persistently long hours include teachers,academics, lawyers, broadcasters, actors, journalists and pilots.

Long hours were also associated with several non-managerialand non-professional occupations, including road and railtransport drivers, suggesting long hours are not alwaysconnected to the ‘ideal worker’ norm.

“It is startling how many employees are working such long hoursyear after year just to help pay off their debts,” said ProfessorMark Wooden, Deputy Director of the Melbourne Institute andone of the study’s authors.

“A clear implication of the research is that reclaiming leisure and family time will require many households cutting back on expenditure.”

To find out more about the HILDA Survey visit:www.melbourneinstitute.com/hilda



What is Convocation?The Committee of Convocation is the body which provides the means for Melbourne graduates to have an input intotheir University. Graduates elect their representatives by Faculty groupings to a committee for fixed terms.

The Committee of Convocation receivesand considers University council papers on University legislation, management,budgets, academic matters andgovernance, and passes its views toCouncil via written reports to councilmeetings. The President of Convocationattends and addresses University councilmeetings.

The Vice Chancellor addresses theCommittee of Convocation on overallUniversity planning and what has beenachieved. When considering currentissues, the Committee of Convocation isbriefed by, and questions, the appropriateUniversity staff member from both theadministrative and academic areas,including Deans of Faculties.

The University Secretary attends all meetings of the Committee ofConvocation and provides a key link toUniversity governance and its legislativeand administrative arrangements.

Graduates of each faculty grouping electone or more representatives (43 in all) tothe Committee of Convocation with thenumber of representatives dependantupon the number of graduates in eachfaculty, (like Parliamentary proportionalrepresentation). The large number ofcommerce graduates entitles us to sixrepresentatives on the Committee ofConvocation, one of whom is currently the Vice President.

All of these arrangements are designed toprovide ways for University of Melbournegraduates to keep in touch with theirUniversity, and to have a means throughwhich they can review and express viewson University matters. This aim is intandem with the work of UMCAS, yourCommerce Alumni Society, who areworking to foster graduate relations andparticipation (including reunions) all ofwhich is strongly supported by the Faculty.

For more information about Convocationvisit www.unimelb.edu.au/unisec/convocation

Your current Representatives are listedthere, and they would welcome any views or requests.

AO: Officer of the Order of Australia

Mr Michael Joseph CARMODY, AO (BCom 1973) –alumnusFor service to the community in the area of taxationadministration and reform through innovative approaches tothe design and implementation of new policies and operations.

OAM: Medal of the Order of Australia

Ms Nanette Margaret OATES, OAM (BCom 1961) – alumnaFor service to environmental management through thedevelopment of conservation programs and policies, and to the community through education about fire safety.

2005 Queens Birthday Honours

Economic benefits of undergraduate and postgraduate business qualifications

Business Tertiary Business Tertiary undergrad undergrad postgrad postgrad

University cost $30,239 $47,382 $60,351 $76,714

Student costs $8,082 $8,082 $13,084 $13,084

Deadweight losses $5,395 $11,842 $3,350 $3,350

Total cost $43,716 $67,305 $76,786 $93,149

Income Premium $542,509 $250,818 $736,512 $347,234

Net economic benefit over someone who completes Year 12 $498,794 $183,513 $659,726 $254,0852

1 The Australian Financial Review, 20 June 2005, p. 33

Value adding: A postgraduate business degreeA recent study by consulting group Access Economics found thatpostgraduate business qualifications generate an estimated neteconomic benefit of $660,000 per graduate more than any other typeof graduate. These benefits apply to the whole economy from theindividuals (who earn more income), the government (who earnsmore tax) and firms (who earn more profits from skilled employees).1

Stephen Bowditch worked in the consulting and pharmaceuticalindustry for eight years before deciding to broaden and deepen hisbusiness knowledge by studying a Master of Applied Commerce,specialising in Marketing. Stephen discovered having a formalbusiness or marketing qualification at master’s level was increasinglybecoming a prerequisite to obtaining top positions in manycompanies.

‘I’ve also found that as career opportunities are becomingincreasingly global, it is important to attend a university withworld-wide recognition for teaching quality and research’ he said.

Stephen recently completed his masters and has been appointed as Business Development Manager at Eye Research Australia.

The Faculty of Economics and Commerce offers masters programs in management, marketing, applied commerce, business and IT,international business, accounting and finance. The benefits are notjust economic – graduates are also motivated to return to study forpurposes such as career transition, professional development andintellectual stimulation. They also want degrees that are flexible and allow them to be better qualified for a wide range of jobs.

How much will we pay for peace?Professor Sir Clive Granger addressed the issue of the ‘costs’ of a peace economy as opposed to a war economy discussingissues of risk, unemployment, return on investment, exchangeand interest rates.

Sir Clive presented these issues to an audience of over 350people at the recent Public Deans Lecture on September 15th as a part of the Faculty’s visiting eminent scholar program.

For notes of the lecture ‘The Economics of Peace’ visit:www.ecom.unimelb.edu.au

Stephen Bowditch, Master of Applied Commerce

Professor Peter McPhee, Professor Margaret Abernethy and Sir Clive Granger



What is Convocation?The Committee of Convocation is the body which provides the means for Melbourne graduates to have an input intotheir University. Graduates elect their representatives by Faculty groupings to a committee for fixed terms.

The Committee of Convocation receivesand considers University council papers on University legislation, management,budgets, academic matters andgovernance, and passes its views toCouncil via written reports to councilmeetings. The President of Convocationattends and addresses University councilmeetings.

The Vice Chancellor addresses theCommittee of Convocation on overallUniversity planning and what has beenachieved. When considering currentissues, the Committee of Convocation isbriefed by, and questions, the appropriateUniversity staff member from both theadministrative and academic areas,including Deans of Faculties.

The University Secretary attends all meetings of the Committee ofConvocation and provides a key link toUniversity governance and its legislativeand administrative arrangements.

Graduates of each faculty grouping electone or more representatives (43 in all) tothe Committee of Convocation with thenumber of representatives dependantupon the number of graduates in eachfaculty, (like Parliamentary proportionalrepresentation). The large number ofcommerce graduates entitles us to sixrepresentatives on the Committee ofConvocation, one of whom is currently the Vice President.

All of these arrangements are designed toprovide ways for University of Melbournegraduates to keep in touch with theirUniversity, and to have a means throughwhich they can review and express viewson University matters. This aim is intandem with the work of UMCAS, yourCommerce Alumni Society, who areworking to foster graduate relations andparticipation (including reunions) all ofwhich is strongly supported by the Faculty.

For more information about Convocationvisit www.unimelb.edu.au/unisec/convocation

Your current Representatives are listedthere, and they would welcome any views or requests.

AO: Officer of the Order of Australia

Mr Michael Joseph CARMODY, AO (BCom 1973) –alumnusFor service to the community in the area of taxationadministration and reform through innovative approaches tothe design and implementation of new policies and operations.

OAM: Medal of the Order of Australia

Ms Nanette Margaret OATES, OAM (BCom 1961) – alumnaFor service to environmental management through thedevelopment of conservation programs and policies, and to the community through education about fire safety.

2005 Queens Birthday Honours

Economic benefits of undergraduate and postgraduate business qualifications

Business Tertiary Business Tertiary undergrad undergrad postgrad postgrad

University cost $30,239 $47,382 $60,351 $76,714

Student costs $8,082 $8,082 $13,084 $13,084

Deadweight losses $5,395 $11,842 $3,350 $3,350

Total cost $43,716 $67,305 $76,786 $93,149

Income Premium $542,509 $250,818 $736,512 $347,234

Net economic benefit over someone who completes Year 12 $498,794 $183,513 $659,726 $254,0852

1 The Australian Financial Review, 20 June 2005, p. 33

Value adding: A postgraduate business degreeA recent study by consulting group Access Economics found thatpostgraduate business qualifications generate an estimated neteconomic benefit of $660,000 per graduate more than any other typeof graduate. These benefits apply to the whole economy from theindividuals (who earn more income), the government (who earnsmore tax) and firms (who earn more profits from skilled employees).1

Stephen Bowditch worked in the consulting and pharmaceuticalindustry for eight years before deciding to broaden and deepen hisbusiness knowledge by studying a Master of Applied Commerce,specialising in Marketing. Stephen discovered having a formalbusiness or marketing qualification at master’s level was increasinglybecoming a prerequisite to obtaining top positions in manycompanies.

‘I’ve also found that as career opportunities are becomingincreasingly global, it is important to attend a university withworld-wide recognition for teaching quality and research’ he said.

Stephen recently completed his masters and has been appointed as Business Development Manager at Eye Research Australia.

The Faculty of Economics and Commerce offers masters programs in management, marketing, applied commerce, business and IT,international business, accounting and finance. The benefits are notjust economic – graduates are also motivated to return to study forpurposes such as career transition, professional development andintellectual stimulation. They also want degrees that are flexible and allow them to be better qualified for a wide range of jobs.

How much will we pay for peace?Professor Sir Clive Granger addressed the issue of the ‘costs’ of a peace economy as opposed to a war economy discussingissues of risk, unemployment, return on investment, exchangeand interest rates.

Sir Clive presented these issues to an audience of over 350people at the recent Public Deans Lecture on September 15th as a part of the Faculty’s visiting eminent scholar program.

For notes of the lecture ‘The Economics of Peace’ visit:www.ecom.unimelb.edu.au

Stephen Bowditch, Master of Applied Commerce

Professor Peter McPhee, Professor Margaret Abernethy and Sir Clive Granger


12 Faculty of Economics and Commerce

20 Year Commerce ReunionFor those who commenced their degree in 1985Friday 7 October 20056.30–9.30pmLower East Dining RoomUniversity HouseUniversity of MelbourneCost: $40 (finger food and drinks)Enquiries: Ross [email protected]

Alumni viewing at the PotterMuseum of Art – ExhibitionA special invitation is extended to all alumni of the University of Melbourne to a private viewing of the exhibition, ‘A study in rhythm and design: Edith Alsop (1871–1958)’Sunday 9 October 200510am–12pmPotter Museum of ArtSwanston Street, ParkvilleCost: $28.00 per head Bookings are essential Please phone (03) 8344 4408More information at: www.events.unimelb.edu.au/eventid_1995.html

Accounting Seminar Seriesby Professor Michael Maher (University of California, Davis)

Melbourne Accounting ResearchSeminar ProgramFriday 14 October 200511am–12pmLevel 4, Seminar Room 4Economics and CommerceBuildingEnquiries: Loris MuirPh: 03 8344 [email protected]

Annual Reunion LuncheonCommerce Alumni whograduated 45 or more years agoThursday 18 October 2005 1–3pmUpper East Dining Room,University HouseUniversity of Melbourne

Final Year BBQIntroducing Final Year students and the Alumni CommitteeThursday 20 October 20051pmParkville CampusUniversity of Melbourne

Young Alumni Event hostedby PricewaterhouseCoopersGuest Speaker GeorgeMegalogenis, Senior Writer,The AustralianTuesday 25 October 2005 6–8pmPricewaterhouseCoopersFreshwater Place2 Southbank BoulevardSouthbankRSVP essential: Dennis [email protected]

UndergraduateBachelor of Commerce Drop In SessionsMeet academic staff, courseadvisors and current studentsThursday 1 December 2005 6–7.30pmExecutive Lounge, Level 1, Alan Gilbert Building, cnr Grattanand Barry Streets, CarltonEnquiries: Carlene Nuske [email protected]

PostgraduateMelbourne Town Hall ExpoMeet postgraduate staff, collectcourse information and askindividual questions. Visit us at theEconomics and Commerce table.Thursday 13 October 200512–7pm Melbourne Town Hall,cnr Swanston and Collins Streets,Melbourne.

Information sessions withProgram DirectorsThis evening will allow you toattend one or two informationsessions specifically coveringparticular programs. Wednesday 9 November 20056–7.30pmExecutive Lounge, Level 1, Alan Gilbert Building, cnr Grattanand Barry Streets, Carlton

Postgraduate enquires:Amanda Hamilton or Sam [email protected] or Ph: 03 8344-1670

Contact detailsFaculty of Economics and CommerceLevel 4, Alan Gilbert Building

The University of Melbourne Vic 3010

Tel: 03 8344-1815 Fax: 03 9348-1674

Email: [email protected]

Web: http://www.ecom.unimelb.edu.au/faculty/business/alumni.html

Edited by Carlene Nuske, Community RelationsFaculty of Economics and Commerce

Alumni News is a publication of theFaculty of Economics and CommerceAuthorised by the General Manager

DisclaimerThe information in this publicationwas correct at the time of printing. The University reserves the right to make changes as appropriate.

Did you know?…you can register for a free electronicUniversity newsletter. GradNet is amonthly electronic newsletter for alumni of the University of Melbourne. Get thelatest information on campus news, alumni activities and events – worldwide.Visit http://www.unimelb.edu.au/alumni/gradnet.html to register.

Upcomingevents

Please note that if you wish to hold your own 10 or 20 yearcommerce reunion, guidelines are available to assist you in creating a successful event.Please contact Susan McPharlinPh: 03 8344 2167 or email: [email protected]


Documents

Alumni News October 2005