The Bracks Government is facing an economic and electoral disaster in Melton.
It walked the Japanese firm -- Saizeriya -- into inter-union battle and failed to fix the mess. As a result the State could lose a multi-billion dollar food processing complex.
Victoria's reputation as a reliable food manufacturer has already been damaged. If the project fails, our reputation and the millions spent to enhance it will be destroyed; thousand of jobs will be lost along with new markets for agricultural products.
The fault goes right to the top -- to Mr Bracks. Shortly after winning government Mr Bracks went to Japan to assure Saizeriya that his Government would meet the commitments made by the previous government and insure a productive IR climate.
The Premier understood the significance of the project. Saizeriya is a massive Japanese Italian-style food chain with over 570 stores. It is profitable, innovative and path breaking and where it goes others follow. After much effort and assistance from the State Government and the City of Melton, the firm decided to build a $40 million pilot plant at a site in Melton. If all went well, this was to be the first of eight plants with a total construction value of in excess $400 million. According to the City of Melton, the Saizeriya investment would spawn an addition investment of $1.4 billion. The whole package constitutes the largest investment in the food industry in modern times.
Instead of helping, the Bracks government lead the Japanese into a nightmare. The IR Minister Monica Gould succumbed to pressure and agreed to give the NUW coverage of the site. Given that the militant AMWU has general coverage of the food manufacturing sector, she would have known that her decision would precipitate disputation.
Industrial disputation ensued from the turning of the first sod in April 2001. The CFMEU, which had coverage over the construction phase, went on a perpetual go-slow in support of the AMWU and the AMWU blocked the supply of steel to the site. The Government stood by helpless until December 2001 when Saizeriya purchased a factory site in New Zealand and threatened to pull the plug. The Government then responded with an offer to compensate the firm for time lost, provide the services of an specialist to fix the problem and set new deadlines. The IR specialist turned out to be a union stooge and was thrown off the site by management, the new deadlines were not met and more money was squandered.
The pilot plant is yet to be completed and is well over 12 months behind schedule. The project is once again in front of the AIRC. The latest deadline of December 2002 is looking in doubt and Saizeriya's management is no doubt once again demanding action or else.
The bottom-line is that the Bracks Government has proven to be grossly incompetent and has put in jeopardy jobs, the bush and our reputation.
While we know a lot about the Saizeriya project as a result of the Cole Royal Commission, there every reason to surmise that similar ineptitude has lead to long and costly delays in other projects including the Geelong highway, Holden engine plant and Age printing plant and Federation Square.
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